7th Mar 2008 07:00
Press release
For immediate release on Friday 7th March, 2008
The information contained herein is not for publication or distribution topersons in the United States of America. Any securities referred to hereinhave not been and will not be registered under the U.S. Securities Act of1933, as amended (the "Securities Act"), and may not be offered or soldwithout registration thereunder or pursuant to an available exemptiontherefrom. Any public offering of securities to be made in the United Stateswould have to be made by means of a prospectus that would be obtainable fromthe issuer or its agents and would contain detailed information about theissuer of the securities and its management, as well as financial statements.Neither this document nor the information contained herein constitutes anoffer to sell or the solicitation of an offer to buy any securities. Thesematerials do not constitute an offer of securities for sale in the UnitedStates. No money, securities or other consideration is being solicited, and,if sent in response to the information contained herein, will not be accepted.Candover Investments plcPreliminary results for the year ended 31st December, 2007
Financial highlights:
- Net assets per share increased by 37.4% over the 12 months to 31st December 2007. FTSE All-Share Index increased 2.0% over the same period - Net assets per share were 2065p, compared to net assets per share of 1503p at 31st December, 2006 - Total dividend per share increased by 11.1% to 60.0p (2006: 54.0p) - Profits before tax of ‚£21.0 million (2006: ‚£20.6 million) - Ten year compound growth in net assets per share of 14.5% per
annum; FTSE All-Share Index growth over the same period of 3.1% per annum
- ‚£150 million raised via a US private placement bond issue
Operating highlights:
- Invested ‚£90.5 million in the year, of which ‚£73.5 million was invested alongside the 2005 Fund in four new investments - Ferretti, Parques Reunidos, Capital Safety Group and Alma - One new investment announced since the year end - the delisting of Stork - Realisations and refinancings generated a record ‚£162.4 million of proceeds during the year - Full exits were achieved from Vetco, Thule, Dakota, Minnesota & Eastern Railroad Corporation, Bureau van Dijk and Get. In addition, Wellstream was listed on the London Stock Exchange - ¢â€š¬5bn Candover 2008 Fund launched, Candover's tenth buyout fund. Commitment of ¢â€š¬1 billion from Candover - Candover Asia to be established during 2008
Gerry Grimstone, Chairman of Candover Investments plc, commented:
"Despite turbulent markets, Candover has continued to perform strongly duringthe year. We have enjoyed record returns from realisations and our Europeannetwork has shown resilience, as demonstrated by our recent investment inStork. 2008 will be a challenging environment in which to operate but historyhas shown that a downturn in the markets can prove to be a good time forinvesting. We do not expect the rate of realisations achieved in 2007 tocontinue into 2008, but I am confident that we are well positioned to make
newinvestments."Ends.
For further information, please contact:
Gerry GrimstoneChairman, Candover Investments plc+44 207 489 9848Colin BuffinManaging Director, Candover Partners Limited+44 207 489 9848Susannah Voyle/Peter HewerTulchan Communications+44 207 353 4200 Chairman's statementIn what has been a turbulent time for financial markets, Candover has continuedto perform strongly throughout the year. We have enjoyed record returns fromrealisations and good investment opportunities have continued to be sourcedacross our European network.
Our performance
Details of the year are set out in the operational and financial reviews whichfollow, but I am pleased to report that our net assets per share (NAV)increased by 37.4% to 2065p, compared to a 2.0% increase in the FTSE All-ShareIndex over the same period. Profits before tax increased to ‚£21.0 millioncompared to ‚£20.6 million last year.We invested ‚£90.5 million in the year of which ‚£73.5 million was investedalongside the Candover 2005 Fund in four new investments, namely the buyouts ofthe luxury yacht manufacturer Ferretti; the theme park operator ParquesReunidos; the manufacturer of fall protection equipment, Capital Safety Group;and the French tax advisory and cost reduction business, Alma Consulting Group.A further investment has been made in Stork, a Dutch engineering conglomerate,since the year-end.Realisations and refinancings generated ‚£162.4 million of proceeds during theyear. We sold our investments in Vetco, Thule, the Dakota, Minnesota & EasternRailroad Corporation, Bureau van Dijk and Get. In addition, Wellstream waslisted on the London Stock Exchange.Our year-end cash balance net of borrowings was ‚£114.2 million as against ‚£29.7million at the end of the previous year, driven by our strong realisations.Candover is making more active use of its balance sheet and consequently, aspreviously reported, we have raised ‚£150 million in debt finance from a USprivate placement bond issue as part of our preparations for the Candover 2008Fund. ‚£120 million of this finance was received in 2007, with the remainderreceived after the year end.The strength of the euro against the pound in the second half of the yearbenefitted the valuation of our portfolio and, combined with movements on ourcash portfolio net of debt, added about 78p to our NAV. As a matter of policy,we see no need to hedge our currency exposures, but ‚£120 million of our debtfinancing has been swapped into floating rate euros to match our eurodenominated commitment alongside the funds.
Our environment
Although 2007 was another record year for European buyouts, deal volumes in thesecond half of 2007 were significantly affected by the credit slowdownresulting from the US sub-prime mortgage crisis. The impact was felt moststrongly at the largest end of the buyout market, as the lack of availabilityof debt finance considerably lowered levels of activity. Our part of the markethas not been as badly affected and we are still able to do deals.Realistically, however, 2008 is likely to be a quieter year than 2007.Private equity remained in the public spotlight during 2007, with intense mediascrutiny focusing on taxation and transparency issues. During the year, theBritish Venture Capital Association (BVCA) asked Sir David Walker to undertakean independent review of the adequacy of disclosure and transparency in theprivate equity industry, and the Guidelines resulting from that review werepublished in November. The Guidelines, which are a voluntary set of rulesintended to be implemented on a "comply or explain" basis, require greaterdisclosure by large private equity firms and their portfolio companies, andindustry-wide data collection and dissemination. In short, we welcome theseinitiatives and we will comply in full.
Candover, because of its listed status, already makes much greater public disclosure regarding its investments than most private equity firms. We will be placing greater emphasis on corporate responsibility going forward and we discuss this, and our obligations under the Guidelines, more fully in the Corporate Responsibility section of the Report and Accounts which will be published in April.
Candover 2008 Fund
The Candover 2005 Fund is now 72% committed and Candover Partners have therefore commenced marketing the Candover 2008 Fund with a target of ¢â€š¬5 billion. The objectives, scope and principal terms of this new Fund are expected to be essentially the same as those of the Candover 2005 Fund.
Under the terms of a coinvestment agreement, Candover Investments plc will becommitting ¢â€š¬1 billion to the Fund, and dependent on the overall performance ofthe Fund, will be entitled to between 2% and 5% of any profit made by thatFund, depending on the investment multiple achieved by the Fund. These are thesame terms as applied for the Candover 2005 Fund.
Our people and operations
We have previously reported that Nico Lethbridge, who had been on the Board ofCandover since January 2003, died on 16th August, 2007 following an accidentalfall. Nico was a tremendous asset to us and we miss him very much.During the year, Stephen Curran, who retired as Chairman of Candover in 2006,stepped down from his position as a non-executive director. Stephen was one ofthe original architects of Candover, and together with Roger Brooke, our LifePresident, established the foundations upon which our success has been built.On behalf of Candover, I would like to thank Stephen very much for his greatcontribution to the Company for over 25 years.Lord Jay of Ewelme was appointed as a non-executive director with effect from1st January 2008 and we are delighted to welcome him on to the Board. Lord Jayis a former Permanent Under-Secretary at the Foreign Office and Head of theDiplomatic Service, having previously served as British Ambassador to France.His distinguished civil service career and his subsequent commercial experiencegive him unrivalled insight and expertise in international affairs which willbe invaluable to Candover as we develop our business further.I am pleased to say that Nicholas Jones will be joining the Board as from 14thApril, 2008. Nicholas is Vice Chairman of Lazard in London and one of the mostexperienced bankers in the City. His skills, knowledge and experience will addgreat value to the Board.
Jimmy West, who has been on the Board for over 20 years, will be stepping down at the AGM and will be succeeded as Senior Independent Director by Antony Hichens.
We have recently announced that we have recruited Jamie Paton to open our firstoffice in Asia. Jamie, who previously spent more than seven years in Hong Kongestablishing 3i's North Asian business, will initially be based in Hong Kongwhile we evaluate options in the region. We already have extensive contacts andlinks in Asia through our European portfolio and by working with someone asexperienced in the region as Jamie, we are confident that we can properlyinvestigate the market potential. It's a toe in the water for us, in a part ofthe world which we believe has the potential to develop excellent returns forus in the years ahead.We have spent some considerable time reviewing how our business could developusing the private equity skills that we have, and Candover Asia is the firstinitiative to be pursued. The Board will continue to review other initiativesduring the forthcoming year and if we think they can enhance shareholder value,we won't hesitate to pursue them. I emphasise, however, that our Europeanbuyout business will remain our core focus.During the year, we strengthened our pan-European buyout team, hiring two newdirectors and six investment managers. We now have 39 professionals based inour four European offices, and in addition to our investment team, havespecialists focusing on origination, portfolio management and debt financing. Ibelieve that we have one of the strongest teams in the private equity industry.
Dividends
The Board is recommending a final dividend of 40.0p per share (36.0p in 2006),making a dividend payable for the year of 60.0p per share (54.0p in 2006), anincrease of 11.1%. We expect to maintain a progressive dividend policy but thiswill depend, of course, on the underlying revenue that is generated by ourinvestments.
Outlook
2008 will be a challenging environment in which to operate. The tight creditmarket conditions show no sign of slackening, and this will inevitably have animpact on both the pricing of transactions and the overall level of activity inthe buyout market. As I indicated at the half year, lower debt multiples mayresult in lower prices and this may cause vendors, including Candover, to delayselling businesses until a recovery is seen in the market. This is likely tomean that the record levels of realisations enjoyed in 2007 will not be afeature of 2008.However, history has shown that a downturn in the markets can prove to be agood time for investing. Candover has a long track record of investing throughmarket cycles and over the past 28 years our returns have been remarkablyconsistent. We enjoy an excellent reputation within the banking community interms of returning debt capital, and this should ensure we are well positionedto obtain financing when we find suitable transactions.Candover has always put a strong focus on helping management improve theoperational performance of our portfolio companies and this is one of the waysin which we make our money. So even though deal activity may be less, I have nodoubt that the development of the portfolio will continue to create valueduring 2008.The winners in these markets will be those players that continue to focus onthe fundamentals, as we do at Candover. Finding and backing high qualitymanagement teams using an investment discipline we have refined over the yearshas allowed us to deliver satisfactory returns to shareholders, and weconfidently expect this to continue.Gerry GrimstoneChairman7th March, 2008Operational reviewAlthough 2007 was another record year for European private equity withtransactions worth ¢â€š¬175 billion, the majority of deal activity took place inthe first half of the year, before the fallout from the US sub-prime mortgagecrisis hit the buyout market. Candover invested in four transactions during theyear. Three were completed before July. Since the credit slowdown we have beenable to structure and execute two sizeable transactions: the Alma buyout inDecember and the delisting of Stork in February 2008.
Investments
The Candover 2005 Fund made four new investments during the year, with Candover investing ‚£73.5 million and the Candover 2005 Fund ‚£445.0 million.
Date of Company Activity Candover 2005 investment Fund ‚£m ‚£m January Ferretti Luxury motor yacht 32.1 194.3 manufacturer March Parques Operator of 10.5 63.5 Reunidos attraction parks June Capital Fall protection 11.5 68.3 Safety equipment Group December Alma Cost reduction and 19.4 118.9 Consulting tax recovery services Group 73.5 445.0
Since the year-end, the Candover 2005 Fund has completed one further transaction: the delisting of Stork, a Dutch engineering conglomerate, from the Amsterdam Stock Exchange. Candover invested ‚£54.7 million, alongside the Candover 2005 Fund which invested ‚£336.0 million.
Candover made two investments in existing portfolio companies:
* ‚£7.0 million in Wood Mackenzie, alongside ‚£64.6 million provided by the
Candover 2001 Fund, to acquire a further 24% stake from the directors and
staff of the business.
* ‚£4.2 million in Ontex, alongside ‚£32.0 million provided by the Candover
2001 Fund as part of the refinancing which was completed during the year.
Realisations
2007 was a record year for realisations with Candover and its managed funds receiving proceeds totalling ‚£1.2 billion during the year; Candover's share was ‚£162.4 million. Our realisations were in the main well advanced before the market correction, the exception to this being Get, the first exit from the
Candover 2005 Fund, which took place at the end of the year.
The principal realisations are set out below:
Date of Company Proceeds Type realisation Candover 2001/2005 Fund ‚£m ‚£m Feb/July Vetco 19.3 178.4 Trade sale International April Wellstream 17.6 156.0 IPO May Innovia Films 7.4 57.9 Refinancing July Thule 31.0 261.9 Private equity September Dakota, 27.4 - Trade sale Minnesota & Eastern Railroad October Bureau van Dijk 16.7 142.7 Private equity December Get 29.4 197.2 Private equity Other 13.6 3.8 162.4 997.9 Candover 2008 FundFollowing the completion of the Stork transaction, the Candover 2005 Fund isnow 72% committed and marketing of a ¢â€š¬5 billion successor fund, the Candover2008 Fund, has now commenced.
Outlook
Large deals aside, the private equity market is continuing to displayresilience, and despite the ongoing uncertainty in the financial markets, ourenhanced European network continues to generate a steady flow of investmentopportunities. Our focus on established businesses with good growth prospectsand strong management teams, combined with our reputation for prudent dealstructuring and use of leverage will, we believe, stand us in good stead overthe coming year.Colin Buffin Marek Gumienny
Managing Director Managing Director Candover Partners Limited Candover Partners Limited 7th March, 2008
7th March, 2008
20 largest investments as at 31st December, 2007
Residual Directors' Effective % of Dividends cost of valuation equity Candover's Basis of received Year invest- interest Date of ment
Investment Geography Invest- ‚£000 ‚£000 (fully net assets valuation ‚£m end Sales Earnings1
ment diluted)Ferretti Italy January 32,099 41,915 5.5% 9.3% Multiple of - August ¢â€š¬950.8m ¢â€š¬158.4m 2007 earnings 07Luxury yachtmanufacturer SEK SEKHilding Sweden December 27,418 28,792 9.1% 6.4% Multiple of - December 5,160.6m 852.7mAnders 2006 earnings 06Bed manufacturer
Springer Germany January/ 573 28,471 4.0% 6.3% Multiple of - December ¢â€š¬919.9m ¢â€š¬250.3m Science +
September earnings 06Business Media 2003Academic publisher DX Group UK September 28,038 28,038 8.9% 6.2% Multiple of - June ‚£143.1m4 ‚£37.4m4 2006 earnings 074Mail servicesGala Coral UK March 24,775 20,913 1.8% 4.6% Multiple of - September ‚£1,309.9m ‚£401.8m 2003/ earnings 07Retail gaming October 2005
Alma France December 19,401 20,013 5.5% 4.4% Transaction - See note See note See note
2007 value 2 2 2Cost reduction and taxrecovery servicesWood Mackenzie UK July 7,093 19,048 6.3% 4.2% Multiple of - December ‚£61.5m ‚£21.0m 2005/ earnings 06Energy Octoberresearch 2007EurotaxGlass's
Switzerland June 17,394 18,571 8.0% 4.1% Multiple of - December ¢â€š¬56.0m5 ¢â€š¬19.2m5
2006 earnings 065Automotivedata intelligenceWellstream UK March 11 14,244 1.3% 3.2% Market 0.2 December ‚£147.2m ‚£24.3m 2003 price 06Oil & gaspipelineALcontrol UK December 13,202 14,038 6.8% 3.1% Multiple of - March ‚£107.1m ‚£18.6m 2004 earnings 07Laboratory testingQioptiq UK December 9,567 12,995 7.4% 2.9% Multiple of - December $177.8m6 $26.8m6 2005 earnings 066OpticalengineeringOntex Belgium January 21,324 11,793 6.3% 2.6% Multiple of - December ¢â€š¬911.9m ¢â€š¬88.8m 2003 earnings 06Hygienic disposablesCapital Safety UK June 11,469 11,342 6.5% 2.5% Transaction - See note See note See note 2007 value 2 2 2Fall protection equipmentParques Spain March 10,440 11,234 5.6% 2.5% Transaction - September ¢â€š¬213.1m7 ¢â€š¬96.2m7Reunidos 2007 value 077Operator of attraction parksAspen US June 6,814 9,872 0.8% 2.2%
Market 0.2 December $1,676.2m $487.3m
2002 price 06ReinsuranceEquity Trust UK May 7,587 7,943 5.5% 1.8% Multiple of - December ¢â€š¬99.1m ¢â€š¬16.8m 2003 earnings 06Trust servicesInnovia Films UK September 2,459 5,566 8.0% 1.2% Multiple of - December ¢â€š¬383.9m ¢â€š¬43.7m 2004 earnings 06Speciality filmCiclad 4 France July 2,856 3,669 NA 0.8% Multiple of - See note See note See note 2005 earnings 3 3 3French buyoutsICG Mezzanine UK July 3,181 3,613 NA 0.8% Multiple of - See note See note See noteFund 2003 2000 earnings 3 3 3Mezzanine fundCiclad 3 France April ‚£nil 3,360 NA 0.7% Multiple of - See note See note See note 2000 earnings 3 3 3French buyouts
1. Earnings figures are taken from the portfolio company's most recent audited
accounts or financial statements filed with regulatory bodies
The figures shown are the total earnings on ordinary activities before
exceptional items, depreciation, goodwill amortisation, interest and tax for
the year2. Audited accounts for the period since acquisition are not yet available3. Investment in a fund, sales and earnings figures not relevant4. Results for the period from 4th April, 2006 to 30th June, 20075. Results for the period from 9th May, 2006 to 31st December, 20066. Excludes results of Linos acquisition7. Results for the 6 months to 30th September, 2007
Financial review
Net asset value
As at 31st December, 2007 the net assets attributable to the ordinary shareswere ‚£451.3 million, compared to net assets of ‚£328.5 million at 31st December,2006.The movement in net assets over the year is mainly due to net realised gainsover prior valuation of ‚£65.9 million, a net increase of ‚£55.6 million on therevaluation of investments, reflecting the maturing of our investmentsalongside the Candover 2001 Fund, plus other movements.
Net assets per share
As at 31st December, 2007 net assets per share were 2065p compared to 1503p at31st December, 2006 and 1848p at 30th June, 2007. The increase in net assetsover the 12 months to 31st December, 2007 of 37.4% compares with an increase of2.0% in the FTSE All-Share Index over the same period. The increase in net assets per shareover the six months to 31st December, 2007 was 11.7% compared to a decrease inthe FTSE All-Share Index over the same period of 3.5%.The compound growth in net assets per share on a five and ten year basis was21.3% and 14.5% respectively, compared to increases in the FTSE All-Share Indexof 11.7% and 3.1% respectively over the same period.
Profits before tax
Profits before tax for the year were ‚£21.0 million, compared with ‚£20.6 millionfor the 12 months to 31st December, 2006. The slight increase in profit wasmainly due to increased income from investments and reduced expenses, partlyoffset by lower income on cash following the return of cash during 2006, andthe reduction in management fees arising due to realisations from the Candover2001 Fund.Valuation of investmentsThe valuation of financial investments at 31st December, 2007 was ‚£344.9million (2006: ‚£295.3 million). This valuation of ‚£344.9 million was calculatedhaving taken into account realisations net of new investments amounting to ‚£6.0million, and a net increase of ‚£55.6 million in the valuation of ourinvestments.The net increase in the valuation of our investments comprised upward movementsof ‚£52.8 million and downward adjustments of ‚£13.9 million, with gains from FXmovements on the portfolio since 30th June, 2007 of ‚£16.7 million. The increasein valuations reflects the maturing of the investments alongside the Candover2001 Fund, which have shown growth in profitability since acquisition, with theaverage age of investments alongside that fund now 46 months. Due to theincreased value of the investments in the Candover 2001 Fund, we have furtherincreased the value of the carried interest in that fund by ‚£12.5 millionduring the year.
Net cash position
Cash and cash equivalents, net of loans of ‚£126.1 million, totalled ‚£114.2million (2006: ‚£29.7 million) at the year-end, representing 25.3% of our netassets (2006: 9.0%). This increase was mainly due to successful realisationsduring the year including the impact on cash flow from operating activities ofreceipts on loan stock interest from disposal or refinancings.
Listed shares at the year-end totalled ‚£24.6 million (2006: ‚£11.3 million), representing 5.4% of our net assets (2006: 3.4%).
Dividends
At the half year the Board increased the interim dividend by 11.1% from 18.0pper share to 20.0p per share. The Board is recommending a final dividend of40.0p per share (36.0p per share for 2006), making a dividend payable for theyear of 60.0p per share against 54.0p for the previous year, an increase of11.1%.
Payment of the dividend will be made on 22nd May, 2008 to shareholders on the register at 25th April, 2008.
Group income statementfor the year ended 31st December, 2007Unaudited Year to 31st December, 2007 Year to 31st December, 2006 Revenue Capital Total* Revenue Capital Total* ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 Gains on financial investments and cash equivalents at fair value through profit and
loss Realised gains and - 70,012 70,012 - 14,249 14,249losses Unrealised gains and - 64,292 64,292 - 38,029 38,029losses - 134,304 134,304 - 52,278 52,278 Revenue Management fees from 37,400 - 37,400 39,454 - 39,454managed funds Investment and other 21,888 - 21,888 21,007 - 21,007income 59,288 - 59,288 60,461 - 60,461 Administrative expenses (37,920) (9,339) (47,259) (39,841) (8,315) (48,156) Profit before finance 21,368 124,965 146,333 20,620 43,963 64,583costs and taxation Finance costs (369) (1,984) (2,353) (12) (222) (234) Movement in the fair - (1,989) (1,989) - - -value of derivatives Exchange movements on - (3,567) (3,567) - - -borrowings Profit before taxation 20,999 117,425 138,424 20,608 43,741 64,349 Taxation (6,880) 3,397 (3,483) (6,231) 2,560 (3,671) Profit attributable to 14,119 120,822 134,941 14,377 46,301 60,678equity shareholders Earnings per ordinary share Basic 64.6p 552.8p 617.4p 65.8p 211.8p 277.6p Diluted 64.5p 551.9p 616.4p 65.8p 211.8p 277.6p
* The total column represents the income statement under IFRS.
Statement of recognised income and expensesfor the year ended 31st December, 2007Unaudited Year to 31 Year to st 31st December, December, 2007 2006 ‚£000 ‚£000 Profit attributable to equity 134,941 60,678shareholders
Exchange differences on translation (111) (11)of foreign operations Total recognised income and expenses 134,830 60,667Reconciliation of movements in equityfor the year ended 31st December, 2007Unaudited Year to Year to 31st 31st December, December, 2007 2006 ‚£000 ‚£000 Opening total equity 328,521 380,261 Total recognised income and 134,830 60,667expenses Return of cash (67) (101,374) Share based payments 271 - Dividends (12,290) (11,033) Closing total equity 451,265 328,521Group balance sheetat 31st December, 2007Unaudited 31st December, 31st December, 2007 2006 ‚£000 ‚£000 ‚£000 ‚£000 Non-current assets
Property, plant and equipment 4,146
1,679 Financial investments designated at fair value through profit and loss Investee companies 323,477 284,336
Other financial investments* 21,407 10,927
344,884 295,263
Trade and other receivables -
1,141 Deferred tax asset 4,894 4,737 353,924 302,820 Current assets
Trade and other receivables 33,574 29,616
Derivative financial 8,374 - instruments Cash and cash equivalents 240,309 63,437 282,257 93,053 Current liabilities Trade and other payables (49,462) (29,655) Loans and borrowings - (33,735) Derivative financial (7,731) - instruments Current tax liabilities (1,658) (3,962) (58,851) (67,352) Net current assets 223,406 25,701 Total assets less current 577,330 328,521liabilities Non-current liabilities Loans and borrowings (126,065) - Net assets 451,265 328,521
Equity attributable to equity
holders Called up share capital 5,464 5,464 Share premium account 1,232 1,232
Share based payment reserve 271
- Translation reserve (130) (19)
Capital redemption reserve 499
499
Capital reserve - realised 326,593
226,894
Capital reserve - unrealised 77,483
56,427 Revenue reserve 39,853 38,024 Total equity 451,265 328,521 Net asset value per share Basic 2065p 1503p Diluted 2048p 1503p
* Other financial investments comprise the company's valuation of its investments as a special limited partner in managed funds.
Group cash flow statementfor the year ended 31st December, 2007Unaudited Year to Year to 31st December, 31st December, 2007 2006 ‚£000 ‚£000 ‚£000 ‚£000 Cash flows from operating activities Cash flow from operations 33,068 12,261 Interest paid (637) (293) Tax paid (5,944) (7,780) Net cash from operating 26,487 4,188activities Cash flows from investing activities
Purchase of property, plant and (3,146) (1,405)
equipment Purchase of financial (90,485) (96,144) investments Sale of property, plant and 92 12 equipment Sale of financial investments 162,415 43,756 Net cash from investing 68,876 (53,781)activities Cash flows from financing activities Equity dividends paid (12,315) (11,008) Return of cash (5,064) (96,367) Loans repayments (33,735) - Advances of loans 119,870 33,735 Net cash from financing 68,756 (73,640)activities Increase/(decrease) in cash and 164,119 (123,233)cash equivalents Opening cash and cash 63,437 189,392equivalents Effect of exchange rates and 12,753 (2,722)revaluation on cash and cash equivalents Closing cash and cash 240,309 63,437equivalents
Note to the financial statements
The preliminary results for the year ended 31st December, 2007 are unaudited.The financial information included in this statement does not constitute theGroup's statutory accounts within the meaning of Section 240 of the CompaniesAct 1985. Statutory accounts for the year ended 31st December, 2007 will befinalised on the basis of the financial information presented by the directorsin this preliminary announcement and will be delivered to the Registrar ofCompanies in due course.The information given as comparative figures for the year ended 31st December,2006 does not constitute the Company's statutory accounts for those financialperiods. Statutory accounts for the year ended 31st December, 2006, prepared inaccordance with International Financial Reporting Standards as adopted by theEuropean Union, have been reported on by the Company's auditors and deliveredto the Registrar of Companies. The report of the auditors was unqualified anddid not contain a statement under Section 237(2) or (3) of the Companies Act1985.
CANDOVER INVESTMENTS PLCRelated Shares:
CDI.L