15th Nov 2012 07:00
15 November 2012
Candover Investments plc - Interim Management Statement
Candover Investments plc ("Candover" or the "Company") today issues its Interim Management Statement in accordance with FSA Disclosure and Transparency Rule 4.3. This statement which, as usual, is unaudited, relates to the period from 1 July 2012 to the date of this announcement.
Net debt
Net debt at 30 September 2012 rose to £23.1 million from £16.5 million at 30 June 2012, reflecting the receipt of £2.7 million of deferred proceeds and related carried interest from Wood Mackenzie, a former Candover 2001 Fund investment, offset by the £8.0 million drawn down as part of the refinancing of Stork, and the Q3 2012 outflows relating to the costs of running the Company.
Portfolio valuation
Candover's investment portfolio was last valued as of 30 June 2012, with a net asset value per share of 642p. Since that date, one follow-on investment has been made by the investment manager Arle Capital Partners, and deferred proceeds from an earlier realisation have been received. These transactions are summarised below.
The next valuation of the Company's assets will be conducted as of 31 December 2012. Consistent with its valuation policy, the Company will continue to apply earnings based valuations to portfolio businesses and will appropriately value the carried interest of the Company in the Candover Funds.
Over the course of Q3 2012, the net effect of currency movements on net asset value has been immaterial.
Follow-on investment and realisation activity
Since 30 June 2012, Candover has invested £8.0 million in one follow-on transaction alongside the Candover 2005 Fund. In August 2012, Stork was refinanced in order to create two separate businesses: Fokker Technologies and Stork Technical Services. As part of the revised financing arrangements, new equity was injected into the business of which Candover's share was £8.0 million.
In July 2012, Candover received deferred proceeds and carried interest totalling £2.7 million which related to the realisation of Wood Mackenzie originally completed in 2009.
Outstanding commitments
As at 30 June 2012, the Company had outstanding commitments to co-investments alongside the Candover 2005 Fund of £13.9 million. These have now been reduced to £5.9 million as a result of the follow-on transaction noted above.
Performance of the portfolio
In spite of the continued slowdown in global economic growth and the Eurozone economic uncertainties, aggregate turnover in the portfolio has increased over the twelve month period to the end of September 2012 by 5%. In addition, earnings have increased during the same period by 1% and the aggregate net debt across these companies has reduced.
Trading at Expro, the international oilfield services business, has been encouraging, with revenues ahead for the second consecutive quarter this year.
Other
Candover's property liabilities were fully provided for at 31 December 2011. Since the end of June 2012, the Company has concluded the subletting of the leases on 20 Old Bailey through to their expiry at the end of 2014. As a consequence the outstanding liability will reduce by approximately £2.0 million.
For further information, please contact:
Candover Investments plc
Malcolm Fallen, CEO +44 20 7489 9848
XLONRelated Shares:
CDI.L