28th Jul 2014 09:29
LONDON (Alliance News) - St Peter Port Capital Ltd Monday reported a decline in its net asset value over the course of its last financial year ended March 31, hit by the appreciation of sterling against the dollar and other currencies.
In a statement, the AIM quoted investment company, which invests predominantly in growth companies shortly before initial public offerings or other exit events, said that its net asset value declined by 16% over the full year, and by 6.0% since September 30, leaving it at 94.13 pence per share at the end of March.
St Peter Port also said that it has realised GBP5.0 million in cash since April 1, 2013, GBP3.4 million during the recent financial year and GBP1.6 million since year-end. The company invested GBP1.3 million during the year, with a further GBP400,000 in an investment since the year-end which has already been realised.
"Most of the largest and most interesting holdings in the portfolio have yet to offer us an opportunity to realise our investment. We can see some major liquidity events becoming closer. The more buoyant market for smaller companies, especially tech-related, should facilitate this, as will positive developments in the larger holdings in the oil sector," Chairman Bob Morton said in a statement.
"There are good prospects that any sizeable transactions in the near future will be at a significant premium to our current carrying value. It is our intention to increase our efforts to accelerate their timing," Morton added.
Separately, St Peter Port Capital said that Tim Childs, who had been a director since the company's inception in 2007, has stepped down. He is also reducing his role as an investment adviser to the company's investment manager, St Peter Port Investment Management Ltd.
As part of the board change, St Peter Port Capital said that it will re-purchase 2.5 million shares from Broughton Ltd, a company in which Childs has a stake. This will end Broughton's interest in St Peter Port Capital. The re-purchase will be an on-market exchange for cash at 55.25 pence per share in cash. The shares will be cancelled.
St Peter Port Capital shares were Monday untraded at 55.25 pence.
According to St Peter Port Capital, Broughton will use the proceeds to buy part of one of its existing portfolio investments, 940,819 shares in Brazil Potash Corp, or a 24.3% stake, at USD2.50 per share. St Peter has also granted to Broughton an option over up to 940,819 Brazil Potash shares, which can be exercised up until September 30 2015 at a strike-price of no less than USD2.50.
The shares in Brazil Potash were acquired by the company at an average price of USD1.27 and the price of the sale to Broughton represents a gain over cost of GBP639,000.
St Peter Port also said that its investment manager has appointed LMN Capital Ltd to advise it as the company enters its next phase. LMN will work together with the investment manager's investment adviser, Shore Capital Ltd.
LMN was established in 2011 as a capital introducer, investor and corporate finance adviser, working closely with high-net-worth individuals, family offices and private equity firms in a wide range of industries. St Peter Port Capital said that LMN and its principal, Jonathan Paisner, a main board director of Shore Capital Group before setting up LMN, will help it in its efforts to speed up the realisation of its portfolio investments.
By Samuel Agini; [email protected]; @samuelagini
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