27th Sep 2019 12:15
(Alliance News) - Marwyn Value Investors Ltd on Friday said its net assets declined in the first half following a sharp decline in the share price of Zegona Communications PLC.
At June 30, the Marwyn Value's NAV per share stood at 188.95 pence compared to 192.17p at December 31, a 1.7% decline.
The UK, European and US small and mid cap investor's net assets slipped 4.9% in the first half to GBP127.1 million from GBP133.7 million. During the period, the fund has bought back 4.0 million shares, by way of a reverse bookbuild, which explains the discrepancy.
Marwyn Value noted the FTSE All-Share gained 12.9% in the first half.
The investment company blamed its own NAV per share decline on the decrease in the share price of Zegona Communications, which represents 26% of the company's NAV, and a write down in the value of Le Chameau Group PLC. This was partially offset by an increase in the share price of BCA Marketplace PLC, which represents 51% of the company's NAV.
Chair Robert Ware said: "We were pleased to see TDR Capital's offer for BCA Marketplace which justifies our continued support for the business and belief it has been consistently undervalued, demonstrated by the significant premium of the offer price to the prevailing share price along with another year of impressive annual results.
"The Zegona team has made significant progress within the period, becoming the largest shareholder in Euskaltel and recommending the appointment of Jose Miguel Garcia as Euskaltel's new CEO. Euskaltel's shareholders have also confirmed the appointment of both of Zegona's executive directors to Euskaltel's board," Ware continued.
During the six months to 30 June, Zegona's share price decreased to 104.5p from 119.0p at December 31, a decrease of 12%.
Ware added: "Wilmcote Holdings PLC and Safe Harbour Holdings PLC, already led by sector-leading management teams, have strengthened their boards this year through the appointment of high calibre executive directors and continue to actively pursue their platform acquisitions. We look forward to a productive year ahead with our portfolio companies."
Wilmcote and Safe Harbour make up 7.7% and 6.5% of Marwyn Value's NAV, respectively.
Shares in Marwyn Value were untraded in London on Friday but last closed at 125.00p each.
By Paul McGowan; [email protected]
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