31st Jul 2006 13:21
Queen's Walk Investment Limited31 July 2006 31 July 2006 Queen's Walk Investment Limited ("Queen's Walk" or the "Company") Preliminary Results for the Quarter Ended 30 June 2006 Queen's Walk announces increased quarterly dividend of €0.26 per share Highlights for the Quarter • Queen's Walk continues to exceed the targets set at the time of its IPO inDecember 2005 and has generated a 12.6% increase in net income for the quarterto €10.997 million. • Dividend increased to €0.26 per share, representing an 8.3% increase to thedividend paid to shareholders for the financial period ended 31 March 2006 • Total investment assets have increased by 98% since the time of theCompany's IPO to approximately €510 million, with investments continuing toperform as or better than expected. • The Company's investment manager, Cheyne Capital Management Limited("Cheyne Capital"), continues to evaluate primary target investments andbelieves there is a strong asset pipeline to support the Company's future growth As set out in the quarterly accounts that accompany this statement, theCompany's investment portfolio generated net income of €10,997,370 for thequarter ended 30 June 2006, representing a 12.6% increase over the income earnedin the period from the Company's IPO in December 2005 to 31 March 2006. The Company's investment portfolio as at 30 June 2006 was approximately €510million (including accrued interest revenue but excluding cash), with portfolioindebtedness of approximately €116 million, representing approximately 23% ofthe portfolio. As noted by the Company at the time it announced its targetdividend for the quarter, Queen's Walk retains sufficient capital and financingflexibility to meet its investment objective and policies in the medium term. Tom Chandos, Chairman said: "We are pleased that net income has increased by 12.6% and that the Company'sstrong performance has enabled us to increase the quarterly dividend by 8.3%.Cheyne Capital continues to identify further attractive investment opportunitiesfor the Company. We will maintain a prudent approach to capital management whileseeking to further enhance shareholder returns." For further information please contact: Investor Relations: Caroline Villiers +44 (0) 20 7153 1521 Cheyne Capital: Syd Hanna +44 (0) 20 7031 7423 About the Company: Queen's Walk Investment Limited is a Guernsey-incorporated investment companylisted on the London Stock Exchange. The Company's investment objective is topreserve capital and to provide stable returns to shareholders in the form ofquarterly dividends. To achieve this, Queen's Walk invests primarily in adiversified portfolio of subordinated tranches of asset backed securities,including the unrated "equity" or "first loss" residual income positiontypically retained by the banks or other financial institutions which haveoriginated the loan assets that collateralise a securitisation transaction. TheCompany makes such investments where its investment manager, Cheyne CapitalManagement Limited, considers the coupon or cashflows from the investment to beattractive relative to the credit exposure of the underlying asset collateral.The Company believes that its investment focus provides equity investors withexposure to a relatively new investment opportunity in this asset class. * * * The content of this announcement includes statements that are, or may deemed tobe, "forward-looking statements". These forward-looking statements can beidentified by the use of forward-looking terminology, including the terms"believes", "estimates", "anticipates", "expects", "intends", "may", "will" or"should". They include the statement regarding the target aggregate dividend. Bytheir nature, forward-looking statements involve risks and uncertainties andreaders are cautioned that any such forward-looking statements are notguarantees of future performance. The Company's actual results and performancemay differ materially from the impression created by the forward-lookingstatements. The Company undertakes no obligation to publicly update or reviseforward-looking statements, except as may be required by applicable law andregulation (including the Listing Rules). Any target dividends are based on certain assumptions as to future events whichmay not prove to be realised. Due to the uncertainty surrounding these futureevents, the targets are not intended to be and should not be regarded as profitsor earnings forecasts. There can be no assurance that these targets will beachieved or that the Company will be able to pay dividends at the target levelsor at all. The payment of any target dividends is subject to the Companygenerating sufficient profits or having sufficient retained earnings and therecan be no assurance that this will be the case. The Company may revise itsdividend policy from time to time. * * * The following extract from the quarterly accounts of the Company for the quarterended 30 June 2006 are unaudited. Consolidated Income Statement For the quarter ended 30 June 2006 Note Quarter ended Period from 6 30 June 2006 September 2005 to 31 March 2006* Euro Euro Operating income 14,992,921 12,480,487 Operating expensesOther operating expenses (2,813,090) (2,455,408)Finance costs (1,182,461) (260,052)Total operating expenses (3,995,551) (2,715,460) Net profit 10,997,370 9,765,027 Distributable profits 2 10,599,894 9,765,027Non-distributable profits 2 397,476 - 10,997,370 9,765,027 Earnings per Ordinary ShareBasic Euro 0.27 Euro 0.24Diluted Euro 0.27 Euro 0.24 Distributable earnings per Ordinary ShareBasic Euro 0.26 Euro 0.24Diluted Euro 0.26 Euro 0.24 Weighted average Ordinary Shares Number NumberoutstandingBasic 40,620,756 40,620,756Diluted 40,852,819 41,053,527 All items in the above statement are derived from continuing operations. All income is attributable to the Ordinary Shareholders of the Company. * The Company commenced its operations on 8 December 2005. Consolidated Statement of Changes in Shareholders' Equity For the quarter ended 30 June 2006 Share Share Other Capital Accumulated Total Capital Premium Reserve Reserve Profits Euro Euro Euro Euro Euro Euro Net profit for the - - - - 10,997,370 10,997,370quarterTotal recognised income - - - - 10,997,370 10,997,370and expense Balance at 1 April 2006 - - 384,631,589 7,672,500 9,765,027 402,069,116 Over accrual of costs - - 46,715 - - 46,715related to issuance ofOrdinary Shares Distribution to the - - - - (9,748,981) (9,748,981)Ordinary Shareholdersof the Company Balance at 30 June 2006 - - 384,678,304 7,672,500 11,013,416 403,364,220 Consolidated Balance SheetAs at 30 June 2006 30 June 2006 31 March 2006 Euro EuroNon-current assetsInvestments at fair value through profit or 501,439,102 487,890,499loss Current assetsCash and cash equivalents 20,735,431 -Other assets 8,979,080 5,952,062 29,714,511 5,952,062 Total assets 531,153,613 493,842,561 Equity and liabilities EquityShare capital - -Share premium account - -Other reserve 384,678,304 384,631,589Capital reserve in respect of share options 7,672,500 7,672,500Accumulated profits 11,013,416 9,765,027 403,364,220 402,069,116Current liabilitiesDistribution payable 9,748,981 -Repurchase agreements 115,783,806 88,880,531Other liabilities 2,256,606 2,892,914Total liabilities 127,789,393 91,773,445 Total equity and liabilities 531,153,613 493,842,561 Notes to the Financial Statements for the quarter ended 30 June 2006 1. General information Queen's Walk Investment Limited (the "Company") was registered on 6 September2005 with registered number 43634 and is domiciled in Guernsey, Channel Islands.The Company commenced its operations on 8 December 2005. The Company is aclosed-ended investment company with limited liability formed under TheCompanies (Guernsey) Law, 1994 and its Ordinary Shares are listed on the LondonStock Exchange. The registered office of the Company is Dorey Court, AdmiralPark, St Peter Port, Guernsey, GY1 3BG, Channel Islands. "Group" is defined asthe Company and its subsidiary. At 30 June 2006, the Company's only subsidiarywas Trebuchet Finance Limited. The Company's investment objective is to preserve capital and provide stablereturns to Shareholders in the form of quarterly dividends. It seeks to achievethis by investing primarily in a diversified portfolio of tranches ofasset-backed securities ("ABS") where the Investment Manager considers that thecoupon or cash flows on the tranche are attractive relative to the underlyingcredit. These are and will be, in most cases, below investment grade or unratedand do or will, in many cases, represent the residual income positions typicallyretained by the originator of a securitisation transaction as the "equity" or"first loss" position. The Group's investment management activities are managed by its InvestmentManager, Cheyne Capital Management Limited (the "Investment Manager"), aninvestment management firm authorised and regulated by the Financial ServicesAuthority. The Company has entered into an Investment Management Agreement (the"Investment Management Agreement") under which the Investment Manager managesits day-to-day investment operations, subject to the supervision of theCompany's Board of Directors. The Company has no direct employees. For itsservices, the Investment Manager receives a monthly management fee (whichincludes a reimbursement of expenses) and a quarterly performance-related fee.The Company has no ownership interest in the Investment Manager. The Company is administered by Kleinwort Benson (Channel Islands) Fund ServicesLimited (the "Administrator"). 2. Distributable and non-distributable profits Non-distributable profits relate to gains from investments which under theUnited Kingdom Listing Rules are prohibited from being distributed to investors.All other income is classed as distributable income. Distributable profitsrepresent the net of this distributable income less operating expenses. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Real Est.cred