4th Jul 2016 08:56
LONDON (Alliance News) - St Peter Port Capital Ltd on Monday said its net asset value declined steeply in the last financial year after the company lowered the valuation of its investments in numerous companies.
The company's aim is to invest in growth companies shortly before they launch an initial public offering or conduct other major activities, and St Peter Port was invested in a total of 19 companies at the end of March, valued at a total of GBP20.9 million.
No new investments were made during the last financial year to the end of March.
The net asset value declined steeply, falling 36% to 37.48 pence from 58.84p a year earlier as total NAV dropped to GBP24.0 million from GBP37.8 million.
St Peter Port said the NAV fell 19% since the end of September, which marked the mid point of the financial year, and the company said the decline was from write-downs to the valuation of the companies in which it is invested.
"Although sentiment in the commodities markets has improved in the last couple of months, the year under review remained challenging. We have made further consequential reductions to the holding value of a number of our investments," said Chairman Lynn Bruce.
The total net investment loss for the year amounted to GBP12.3 million, much narrower than the GBP21.6 million loss reported in the previous period. Administrative costs fell to GBP1.4 million from GBP2.0 million.
That led the overall net loss for the year to come in at GBP13.7 million, compared to the GBP23.6 million loss in the previous year.
St Peter Port said it realised or partly realised investments in the year generating a total of GBP308,000 and one of the companies it is invested in also made a capital distribution of GBP132,000. Since the end of March, a further GBP148,000 has been realised by the company.
The company said it has realised GBP66.0 million since inception from disposing investments, adding that it has made a gain of 40% overall.
No dividend will be paid as St Peter Port failed to make any net gains on investments in the year. The company said it will stick to its policy to pay out 50% of the net gains from all realisations per six month period.
Cash at the end of March stood at GBP3.2 million, but that has fallen a touch to GBP3.1 million by the end of June, it said.
St Peter Port shares were trading flat on Monday morning at 9.75 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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