22nd Jan 2020 18:29
(Alliance News) - Chenavari Capital Solutions Ltd on Wednesday warned of further cuts in dividends, as it posted a fall in annual net asset value.
The investment company said NAV per share declined to 85.97 pence in the year to the end of September 2019 from 89.37p reported the year prior.
"The decline was largely due to a write down of one of the assets coupled with higher levels of cash held in the portfolio pending return of capital to investors and the requirement to hold cash balances to cover margin calls," explained Non-Executive Chair Rob King.
Chenavari Capital's share price at September 30 stood at 75.50p, representing a 12.18% discount to NAV.
The stock closed untraded on Wednesday in London, last quoted at 61.00p each.
As at September 30, the company was invested in seven positions including five primary transactions valued at GBP19.1 million and two secondary transactions valued at GBP11.4 million, represent 49% and 29% of its total assets, respectively.
In financial 2018, it was invested in seven primary transactions valued at GBP34.5 million and two secondary transactions valued at GBP11.5 million.
Chenavari Capital declared a 2.20p per share dividend for financial 2019, down from 4.00p paid the year before.
"It should be noted that dividend levels have declined as the higher income generating assets have been disposed of and it is likely that dividends will decline further until such point as it is no longer viable to make dividend payments to investors," said King.
By Ife Taiwo; [email protected]
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