Mithras results for the first half of 2015 show the NAV falling from 162.1p to 158.4p meaning that the NAV total return was also negative -1.7%. The return to shareholders was 3.5%. these numbers compare to a 3.5% return on the FTSE All-Share Index. the Company completed its fourth tender offer in June 2015, buying back a total of 16.5% of the Ordinary shares in issue and returning £6.1m to shareholders.
The Board has made a full provision of £1.0m against the current valuation of Tensator, a Riverside Europe III portfolio company, due to the company being put into administration.
Within the portfolio they say investment activity during the first six months of 2015 was limited. CVC Europe V completed the acquisition of its final new deal, acquiring Sky Bet in March 2015 and called funding for the add-on acquisition of Quiron by Idcsalud. The four remaining underlying funds in MCF (the vehicle through which they make their investments), OCM Principal Opportunities Fund IV, Doughty Hanson V, Riverside Europe III and PAI Europe V are already fully invested but PAI Europe V announced the add-on acquisition of Nestle’s South African ice cream business by R&R Ice Cream, although this deal is still subject to competition clearance. During the period under review, MCF utilised existing cash resources and retained distribution proceeds totalling £700,000 to meet investment activity. They do not expect to see further material retentions of distribution proceeds as MCF will only call capital for fees and follow-on investments.
The favourable exit environment of 2014 has continued into 2015 and during the first six months of 2015 the Company received gross distribution proceeds of £4.6m. In addition, in early July 2015, the Company received further gross distribution proceeds of £600,000. CVC Europe V made a number of partial distributions from portfolio companies including Evonik, Pilot, Brit, Sunrise and Cerved as well as completing the sale of Merlin Entertainment which returned c. 2.5x cost. PAI Europe V sold its residual stake in Atos, being PAI’s second full exit from this fund which resulted in a gross multiple of 2.0x cost and Doughty Hanson V completed the sale of Eurofiber at a multiple of 2.5x cost. The Company also received a small distribution from OCM Principal Opportunities Fund IV. The remaining portfolio is well positioned to deliver further distributions during the second half of 2015.
Mithras’ cash position decreased from £6.3m to £3.6m although this was principally due to cash of £6.1m being utilised for the fourth tender offer but also includes investment activity within MCF as well as the 1.0 pence per share dividend paid in May 2015.
Excluding subsidiary company cash balances, the Company’s cash balance of £3.1m compares to a maximum outstanding commitment at 30 June 2015 to MCF of £4.0m. Given the fully invested position of MCF, the Company expects that up to £1.1m could be drawn, leaving a cash surplus of £2.0m at 30 June 2015.
MTH : Mithras enjoying favourable exit environment