Utilico Investments has published its interim report covering the final six months of 2014. Over that period the total return on net assets was -2.0% which compares to a return of -0.4% on the FTSE All-Share Index.
Within the listed portfolio, Zeta Resources and Resolute Mining fell by 35.2% and 59.0% respectively. This reduced Utilico’s listed portfolio value by £33.8m. This was a reflection of falling commodity prices and movements in exchange rates. They have been lending money to Zeta, the stamen says £19.8m in total.
By contrast some of their unlisted investments have been rising in value. DTI (a surveillance solutions business) had an IPO in Australia that valued Utilico’s investment in DTI at A$3.7m versus an investment cost of A$1.8m and a valuation at 30 June 2014 of A$2.3m. As at 31 December 2014 the position was valued at A$3.9m. DTI was held by Vix Limited at 30 June 2014 and it was included in the unlisted portfolio by Utilico. DTI was transferred to Utilico in November 2014 and included in Utilico’s listed portfolio from the time of the IPO in December 2014. Vix Technology realised an investment it held in CCRTT, a Hong Kong listed company for A$24.5m; of which A$12.0m was returned to shareholders, including A$4.8m to Utilico. Coldharbour Marine (“CHM”), which is awaiting final certification for its ballast water treatment system, has raised significant funding at values substantially above Utilico’s cost of investment. These events have driven the unlisted valuation for CHM significantly higher.
The other major positive was Infratil, whose shares were exceptionally strong, rising 22.4% during the period to NZ$2.98. The total return to Utilico over this period was even higher, at 37.1%, following an increased interim dividend, the announcement of a NZ$0.15 special dividend and the stronger New Zealand Dollar.
UTL : Utilico commodity hit offset by unlisted holdings