SVG Capital has announced results for the thirteen months ended 31 January 2015. Over the period the company’s net asset value rose by 14% to 588p (from a total return on the investment portfolio of 17%). £330m of cash was generated by the portfolio during the period and the company returned £205m to shareholders – £100m via tenders and £105m via share buy-backs. A further £70m tender is planned for May 2015. It is three years since SVG adopted a strategy of returning excess capital to shareholders while making new investments. Over the three year period £467m has been committed to new investments, £458m returned to shareholders and £238m has been used to pay interest and reduce the company’s debt.
They wrote up the value of their investment in, semiconductor business, Freescale by £70m during the year and, since their year end, Freescale has agreed a merger with NXP Semiconductors that will increase the value of this business to SVG by a further £15m. The next largest gain, £14m, is attributed to Arysta LifeScience which they sold during the year – the deal was concluded in February. Acromas (AA and Saga) rose in value by £8m as they exited AA and Saga IPOd. They turned half their holding in Hugo Boss into cash during the year but overall its valued declined by £5m. They also had a large cash inflow from the sale of ProSiebenSat.
SVI : SVG reports good NAV growth and plans a tender in May