Candover has published results for the year ended 31 December 2015. Its NAV per share was 243p at 31st December 2015, a 55% decrease over the year.
Most of the fall in the NAV is down to a write down in the value of Expro International – this took £43.6m or 199p of the NAV and left the business valued at £0.5m. The turmoil in oil markets continues to impact on its performance. The aggregate value of Parques and Technogym increased by £12.3m but other write offs brought the aggregate reduction in the portfolio valuations to £47.1m. Net debt increased to £33.2m from £27.3m as they put more money into Expro before they wrote it down.
The sale of the two constituent businesses of Stork BV announced during 2015 is expected to generate proceeds of £20m, including £5.9m from Fokker which was received in December 2015. Completion of Stork sale is expected shortly.
They negotiated a new term loan facility with 17Capital LLP for up to €52m (£37.1m) to help repay the existing US PP Notes at par and meet future working capital requirements. The US PP Notes were repaid on 13th August 2015. The new debt facility has a five year maturity which can be further extended at the Company’s option at no cost. The interest charge is payment-in-kind at 13% per annum, which will roll-up and be paid when the loan principal is repaid. The loan is subject to a minimum repayment amount calculated as if the loan had been outstanding for 2.75 years; however, this is reduced to 1.15 years for any amounts repaid within the first 12 months, up to a maximum of €19.4m. The terms of the facility allow the Company to return up to £21.8m (equivalent to 100 pence per share) to shareholders, ahead of any repayment of debt, following the realisation of assets. This is in contrast to the Company’s
previous debt arrangements. This initial return of cash is subject to a pre-distribution test that the portfolio value is at least twice the level of debt.
CDI : Candover results show effects of Expro write down