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QuotedData’s morning briefing 20 December 2022

221220 morning

In QuotedData’s morning briefing 20 December 2022:

  • Geiger Counter (GCL) published results in which it reported an NAV return for the 12 months ended 30 September 2022 of 2.2%. A fall in the uranium price in the second half of the period weighed on returns. The NAV return was also diluted by the subscription rights issue in April. Looking longer term, the manager is encouraged by the significant commitments made by governments to extend their nuclear power programmes in the wake of the fossil fuel energy price spike.
  • North Atlantic Smaller Companies (NAS) has published a comment on voting at its last AGM. More than 20% of those voting opposed a Rule 9 waiver – this allows the proportion of the company held, in this case by a Concert Party led by the manager, to increase beyond 29.9% without triggering a mandatory takeover bid. The Concert Party’s shareholding has already passed this threshold – as share buybacks shrink the company but it does not participate in these. The board argues that this creeping control might be a vaild concern for a trading company but the directors do not believe this is so for an investment trust. It also suggests that many investors are only opposing this because shareholder advisory consultants are telling them to oppose the proposal. The board will keep talking to shareholders, but as the proposal was approved, will press on with its buyback programme.
  • Pantheon Infrastructure (PINT) has a new £62.5m multicurrency revolving credit facility provided by Lloyds Bank Corporate Markets. The cost of the facility is 2.85% per year over the relevant currency benchmark rate or compounded reference rate on drawn amounts or a commitment fee of 1% on undrawn amounts. The borrowing cost reduces to 2.65% if the fund grows to a certain (undisclosed) size. The tenor is three years, with optionality to extend this further subject to lender approval.
  • Civitas Social Housing (CSH) notes that the Regulator has downgraded its assessment of My Space Housing Solutions to V4/G4 (the lowest possible rating). It also says that more recently rent arrears have occurred which are not material in the context of the Civitas portfolio but are being actively followed up with a view to obtaining payment. My Space accounts for nine properties in the portfolio or 1.3% of the rent roll. [As before with First Priority, we would expect Civitas to find a way through this that protects the tenants and avoids a material hit to the trust’s income.]

We also have results from Majedie and Ecofin Global Renewables and Infrastructure, a new investment by Renewables Infrastructure, and updates from Round Hill Music and Aquila Energy Efficiency.

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