16th May 2012 11:17
Press release For immediate release on 16 May 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 January 2012 to the date of this announcement.
Prepayment of loan notes at par
In February 2012, an offer was made for voluntary prepayment of some of the loan notes using the proceeds from the sale of Capital Safety Group which completed in January 2012. As a result of this offer, prepayment at par of US$12.1 million was made on 12 April, of which $7.5m was against the US$ denominated Series A notes and €3.4 million ($4.6 million) was against the € denominated Series B notes. This prepayment will further reduce the Company's financing costs.
Net debt
Net debt at 31 March 2012 reduced to £13.5 million from £38.0 million at 31 December 2011 reflecting both the receipt of initial proceeds of £27.3 million from the sale of Capital Safety Group and the Q1 2012 outflows relating to the costs of running the Company.
Portfolio valuation
Candover's investment portfolio was last valued as of 31 December 2011, with a net asset value per share of 717p. Since that date, two follow-on investments have been made in investments held by the Company, and proceeds have been received from the sale of Capital Safety Group by the investment manager, Arle Capital Partners ("Arle"). These transactions are summarised below.
The next valuation of the Company's assets will be conducted as of 30 June 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 the first quarter of 2012, the net effect of currency movements on net asset value has been immaterial, reflecting the relative mix of assets and liabilities between Sterling, US Dollars and Euros.
Follow on investments
Since 31 December 2011, Candover has invested a total of £0.5 million in two follow-on transactions alongside the Candover 2005 Fund, comprising £0.1 million in Expro International to fund the development of the company's AX-S project and £0.4 million in Alma to fund a restructuring of the management of the group.
In addition to the follow-on investments which required funds from Candover, two portfolio companies made acquisitions that were financed from their own balance sheets. In March 2012, DX Group acquired Nightfreight, the market leader for larger and heavier parcel traffic in the B2C and B2B markets. The enlarged group is now one of the UK and Ireland's leading independent mail, courier and logistics network operators. Also in March, Parques Reunidos made two acquisitions, buying the largest water park in the US, as well as acquiring a leading attractions park in the Netherlands.
As at 31 December 2011, the Company had outstanding commitments of £14.9 million which have now been reduced by £0.5 million to £14.4 million as a result of the follow-on transactions noted above.
Realisations
The sale of Capital Safety Group completed in January 2012, generating cash proceeds for Candover of £29.6 million, comprising an initial payment of £27.3 million received on completion and a deferred element of £2.3 million received in April 2012.
In May 2012, Expro International sold its Connectors & Measurements division to Siemens AG at a valuation of US$630 million. The net proceeds were retained in the business to finance the growth strategy of the core business and to repay existing borrowings. Following completion of the sale, Expro International announced a cash tender offer to pay down up to US$425 million of its 8.50% senior secured loan notes due in 2016.
Performance of the portfolio
Despite the uncertain economic environment, trading in the portfolio has been encouraging in the first quarter of 2012, with rolling twelve months sales and earnings across the portfolio up 5% and 2% respectively compared to the twelve months to Q1 2011. On a similar rolling twelve month basis, the portfolio has delivered an aggregate uplift of 2% in both sales and earnings as at the end of March 2012 compared to December 2011.
Ends. For further information, please contact: Candover Investments plc +44 207 489 9848 Malcolm Fallen, CEO Helen Walsh, Communications +44 7747 868347
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