The Board of Phaunos Timber has published a presentation that outlines a new strategy for the company.
In summary the presentation covers the following:
- The intention of the Phaunos Board to propose a resolution for the continuation of the company for a further 5 years
- The potential to provide yields of 3-5% and NAV growth of 3-5% in the medium term subject to ongoing asset sales and the potential re-investment of part of the sale proceeds
- An estimated net asset value at their year end of between US$ 310 million and US$ 325 million or between 57 and 59 cents per share subject to finalisation of independent valuations, foreign exchange movements and audit of the annual report. This represents a 16-20% increase relative to the 2015 year end NAV per share of 49 cents
- The reduction in portfolio debt to 1% of NAV
- A rebalancing of the portfolio that has lowered the portfolio risk and increased the cash held to levels above US$ 45 million (13-15% of the estimated year end NAV)
- The revised management fee arrangements between the company and Stafford Capital Partners Limited of 0.75% of market capitalisation, subject to the passing of the Continuation Vote. The fee will be effective from 1 December 2016.
You can read the full presentation on their website.
PTF : Phaunos Timber outlines new strategy