BBGI SICAV reports a 3.1% increase in its NAV over the year ended 31 December 2015. During the year the Board increased the dividend target. 2015 interim dividend of 3.00 pence per share paid on 29 October 2015 and further dividend of 3.00 pence per share proposed for year ended 31 December 2015, giving total distributions of 6.00 pence per share for the year. This represents a 4.17% increase from the prior year.
Sterling strength took £24.1m off the NAV.
Further investments were made in Northern Territory Secure Facilities, Avon and Somerset Police HQ and Mersey Care Mental Health and new commitments were made to invest in Belfast Metropolitan College, North West Regional College and North Commuter Parkway. The last of these is an investment in the primary market where they believe attractive returns are available with the right partners and these types of opportunities will remain a key focus for the Management Team in 2016.
During the year, additions to the portfolio totalled £41.6m or a 9.1% increase on the 31 December 2014 portfolio value. The figure excludes both the North Commuter Parkway equity commitment which is backed by a letter of credit during the construction period, and also the Belfast Metropolitan College acquisition which was announced in July 2015 but had not yet concluded before the year end on 31 December 2015. By including these two projects the total additional equity committed and/or invested during the year ended 31 December 2015 amounts to £54.5m.
At 31 December 2015 the Group had a total cash balance of £23.2m and total borrowings outstanding of £45.2m equating to a net debt position of £22.0m.
Legislation is currently being proposed in Luxembourg that should, if passed, enable the Company to issue new shares at a NAV premium which is greater than the current legally imposed limit of 5% and accordingly much nearer to BBGI’s quoted price. They intend to amend the Company’s Articles to take advantage of this change and a resolution is being proposed at the forthcoming EGM.
They continue to monitor closely the OECD project on Base Erosion and Profit Shifting (“BEPS”). Latest advice, although preliminary at this stage, suggests that the company should be well positioned to benefit from certain exemptions under this BEPS initiative where necessary, while some jurisdictions in which the company is invested are not expected to change their current profit shifting rules.
BBGI wants to issue shares at higher than a 5% premium