Princess Private Equity reflects on H1 as dividend reduced to support portfolio companies – Princess Private Equity (PEY) has reported interim results to 30 June 2020, with highlights that include:
- In the first half of 2020, PEY reported a NAV total return of (4.6%);
- The NAV performance was mainly attributable to movements in the valuation multiples of comparable companies used to value PEY’ portfolio companies;
- NAV total return for the first quarter was (14.8%), reflecting the correction observed in public markets during March. NAV performance then partially recovered in the second quarter +11.9% as public markets rallied;
- Share price total return over the same period was (12.8%), with share price lagging the recovery in NAV; and
- The company provided revised guidance that it intended to pay a reduced dividend of not less than EUR 0.29 per share in 2020 (2019: EUR 0.58 per share) in order to preserve sufficient liquidity to ensure its ability to support portfolio companies that may be negatively affected by the crisis.
‘Reduced dividend to preserve liquidity to support portfolio companies‘
PEY’s chairman, Richard Battey, noted: “The impact of COVID-19 remains unprecedented and PEY’ portfolio, as well as public markets, have seen a sharp decline in valuations followed by a partial recovery. In order to preserve sufficient liquidity to ensure PEY is able to support portfolio companies that may be negatively affected by the crisis, the company provided revised guidance that it intended to pay a reduced dividend of not less than EUR 0.29 per share in 2020. With PEY’ robust balance sheet and the exposure to a global portfolio of leading private companies operating in sub-sectors benefitting from long-term, structural growth drivers, the board believes that the portfolio remains well-positioned to generate further value for shareholders.”
PEY/PEYS: Princess Private Equity reflects on H1 as dividend reduced to support portfolio companies