28th Aug 2015 10:03
LONDON (Alliance News) - Dunedin Enterprise Investment Trust PLC said Friday it underperformed its benchmark in the six months to the end of June, hit by the performance of its oil and gas sector investments.
The private equity investment trust said its net asset value per share in the first half fell by 1.0% to 510.6 pence from 505.4 pence at the end of December. That compares to the 9.5% increase in the FTSE Small Cap Index (excluding Investment Companies), the fund's benchmark.
Dunedin said that while it was given a boost by strong contributions from courier CitySprint, wealth manager Hawksford and safety products company Kee Safety, their good performances were offset by weakness for metal engineer Premier Hytemp and EV Offshore, which makes video cameras used to diagnose and analyse problems in oil and gas wells.
"Between your company's half year end and the time of writing this statement, market conditions have been turbulent following negative economic news mainly from China," said Chairman Duncan Budge.
"The market for unquoted businesses is generally not directly correlated with global stock markets. A continuation of this turbulence could help to lower the multiple required to be paid for new investments, but correspondingly may have a negative impact on the IPO market and potential exit valuations achieved," Budge added.
Shares in the trust were up 1.4% to 323.32 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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