11th Jun 2018 12:17
LONDON (Alliance News) - St Peter Port Capital Ltd said Monday its net asset value per share dropped significantly during its recent financial year due to write downs on valuations.
For the year ended March 31, the investment company's NAV per share fell 30% to 20.66 pence from 29.56p a year before. This was a result of write downs on two of its investment valuations and a currency headwind caused by the depreciation of the dollar against sterling.
The company said the valuations were "made for reasons of prudence" and not a result of any change in the companies concerned.
St Peter Port said that it has no plans to issue a dividend as the company made no net gains on its realisations during the year.
The investor's assets dropped 29% to GBP13.5 million from GBP19.1 million the prior year.
As at June 7, the company's liquid funds totalled only GBP1.3 million and its portfolio "remains highly illiquid". Nonetheless, St Peter Port said intends to offer shareholders the opportunity to initiate a liquidation of its holdings, including those which are more illiquid.
The board does not advise this course of action. Instead, it proposes that the company should continue on a further one-year rolling mandate so that it can place itself in a better position.
"Were the company required to realise its investments in the short term, it would likely have to accept prices appropriate to a distressed sale," said St Peter Port Chairman Lynn Bruce.
"The board remains committed to trying to deliver value to shareholders through disposals of the investments and by trying to stimulate liquidity. It also remains open to alternatives should they arise," Bruce continued.
Shares in the company were down 6.2% at 8.56p on Monday.
Related Shares:
SPPC.L