17th Aug 2020 18:04
Alliance News - Princess Private Equity Holding Ltd on Monday said its net asset value in the first half of 2020 fell due to the impact of Covid-19 on the market and its portfolio.
The investment firm's NAV per share at June 30 stood at EUR11.99, down from EUR12.56 at December 31.
For the first half of 2020, the investment company posted a NAV total return of negative 4.6%.
NAV total return for the first quarter was negative 14.8% reflecting the correction observed in public markets during March. Performance then partially recovered in the second quarter, up 11.9% as public markets rallied. Share price total return over the same period was negative 12.8%.
During the first half, Princess Private invested EUR48.8 million. Net liquidity as at the end of June was EUR34.3 million
Chair Richard Battey said: "In the first six months of 2020 we have experienced the outbreak of a global pandemic. The impact of Covid-19 remains unprecedented and Princess' portfolio as well as public markets have seen a sharp decline in valuations followed by a partial recovery."
Looking ahead, the company provided revised guidance guidance, stating it will pay a reduced dividend of not less than EUR0.29 in 2020, down from EUR0.58 in 2019. It said the reduction will help it preserve sufficient liquidity to ensure its ability to support portfolio companies that may be negatively affected by the crisis.
"With Princess' robust balance sheet and the exposure to a global portfolio of leading private companies operating in sub-sectors benefitting from long-term, structural growth drivers, the board believes that the portfolio remains well-positioned to generate further value for shareholders. We believe that Princess continues to represent an attractive investment opportunity, providing shareholders with exposure to a global portfolio of leading private companies," Battey added.
Shares in Princess Private Equity closed 0.9% lower at 820.97 pence each on Monday in London.
By Ife Taiwo; [email protected]
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