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QuotedData’s morning briefing 26 June 2020

In QuotedData’s morning briefing 26 June 2020

  • The managers of Ediston Property Investment Company bought 276,971 shares at 50p per share on 23 June, to take their holding to 1.5m shares. 50p is a 47.1% discount to the last published NAV but that will probably be falling as a result of COVID-19.
  • Manchester and London used to hold debentures at Wimbledon and offer seats to shareholders. After the cancellation of the tournament this year, the manager consulted with a number of shareholders as to whether it would be better to sell the debentures and cease providing this shareholder benefit. A majority of respondents agreed that the benefits were now potentially outweighed by the costs (including risk of cancellation and further waves of Virus outbreaks) and so the debentures have been sold. [QD comment: many companies used to offer perks to shareholders but the practice is dying out].
  • Henderson Far East Income has declared a third interim dividend of 5.80p per ordinary share for the year ending 31 August 2020, which equates to a modest increase of 1.8% increase over the 5.70p paid for the second interim dividend. The trust’s board says that while Asia has not been immune to dividend cuts, the impact has been more modest and the region is expected to recover more quickly. It believes that the impact from Covid-19 does not change the structural growth story for Asian dividends and has reasons to be confident that the positive trajectory will resume once the virus has been contained. 
  • Merian Chrysalis has published its interim results fro the six months ended 31 March 2020. To summarise, its NAV fell by 4.2%, its share price fell by 29.0% and its total assets fell by 4.2%, which the chairman describes as trading well despite the disruptions. The company has provided the following highlights:
    • Robust NAV performance, given the impact of COVID-19 on valuation metrics
    • Majority of portfolio is trading well through the pandemic affected period, including post period end
    • Significant follow-on and scale-up investments were made in the period, as well as a new position added via a €14.4m investment in FinanceApp AG  (wefox group), a digital insurtech asset
    • Portfolio has been stressed to ensure it is capable of providing funding if required to investee companies across most reasonable COVID-19 related trading scenarios
    • Post period end, a £20m investment was made in Featurespace Limited, a leader in AI-based fraud detection, the Company’s eleventh asset
    • The Company is currently 90% invested
    • The Company remains well capitalised, with current available cash of over £36m

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