Chenavari Capital Solutions on track for capital return by 2021 – Chenavari Capital Solutions has published results for the year ended 30 September 2017.
Highlights for the year ended 30 September 2017
- During the year ended 30 September 2017, they produced a NAV total return of 5.71% (dividends reinvested) (2016: 4.23%).
- The NAV declined from 94.26 pence at 30 September 2016 to 92.91 pence at 30 September 2017 net of distributions.
- Dividends of 6.75p were declared (2016: 7.5 pence), of which 5.0p was paid during the year, with a final dividend for the year of 1.75p paid on 30 November 2017.
- The mid-market share price at 30 September 2017 was 90.5 pence (2016: 85.0 pence), representing a discount to NAV of 2.59 % (2016: 9.83%).
- The profit was GBP6.5 million (2016: GBP5.0 million), or 5.13p (2016: 3.80p), taking into account recognition of the following significant items:
- total net income of GBP8.3 million (2016: GBP6.7 million).
- total operating expenses of GBP1.8 million (2016: GBP1.7 million).
- From 1 January 2017, the company entered into a realisation period and started to return unencumbered cash balances to shareholders. Two returns of capital were made in April and September 2017 in the form of compulsory redemptions of shares equivalent to a total distribution of 9.9% of the share capital as at the IPO. A third compulsory redemption was made in December 2017 equivalent to a further 9.9% of the share capital as at the IPO. It is expected that the portfolio will be substantially realised and over 90% of the projected cash proceeds will be returned to investors by mid 2021.
- At 30 September 2017, the company was 82% invested (2016: 91%) in eleven positions, including nine primary transactions valued at GBP74.2 million (2016: ten valued at GBP85.1 million) and two secondary transactions valued at GBP15.05 million (2016: three valued at GBP22.2 million). The company had other assets and liabilities equating to 1.71% of NAV and cash equating to 14.98% of NAV at 30 September 2017 (2016: 3.19% and 9.39%).
- During the year, the company repurchased and cancelled 121,000 shares via two share repurchases and at 30 September 2017 the company had 117,253,944 shares in issue.
CCSL : Chenavari Capital Solutions on track for capital return by 2021