28th Feb 2014 11:42
LONDON (Alliance News) - Private equity firm Candover Investments PLC Friday said its net asset value per share rose by 18% over the course of its last financial year, boosted by the recovery in the value of its portfolio, while Chief Executive Malcolm Fallen said there is "greater potential" to start returning cash to shareholders over the next two years.
Candover shares were Friday quoted at 545.00 pence, up 56.00 pence, or 11.5%.
Candover refinanced its US private placement loan notes at the end of 2013, as they were due for repayment from October 2014. Refinancing the debt allowed Candover to hold less cash. With interest rates at all-time lows, holding large surplus cash balances produces no returns, as cash performs badly against inflation.
"The improvement in the portfolio, when combined with a more general increase in corporate activity, is encouraging in terms of seeing progress in realising our underlying investments over the years ahead. Our objective remains to optimise the long term value of our investments by returning cash to shareholders as soon as is practical," Richard Stone, Chairman, said in a statement.
Candover won't pay a dividend but said it will review its policy "in the context of our focus on delivering a progressive return of cash to shareholders over time."
Net asset value per share rose to 715 pence from 608 pence in the year ended December 31, 2013.
The value of its portfolio moved up by 21% over the year, driven by valuation increases and favourable currency movement.
By Samuel Agini; [email protected]; @samuelagini
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