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QuotedData’s morning briefing 26 January 2023

In QuotedData’s morning briefing 26 January 2023:

  • Literacy Capital (BOOK) has published its quarterly trading and NAV update for the three months ending 31 December 2022. The NAV rose to 420.6p from 384.9p, contributing to a total NAV return of +9.3% in the last three months and +51.7% in the last twelve months. Portfolio companies continue to trade well, with RCI Group contributing particularly strongly in Q4. Total charitable donations since the inception of Literacy have now reached £5.8m, with a charitable donation provision of £733k in the three months to 31 December 2022. The shares are currently trading on a discount to NAV. The board is monitoring this situation closely and will take action to improve returns for shareholders if necessary. [It feels like BOOK’s NAV is just rising too fast for the share price to keep up. The lastest NAV takes the size of the company through £250m, which may help broaden its appeal amongst larger investors.]
  • Downing Renewables & Infrastructure (DORE) has increased its revolving credit facility (RCF) with Santander from £25m to £40m. The extra money will be put towards the trust’s pipeline of acquisition opportunities. The terms of the RCF will now include a ‘Green Projects’ initiative, which means that it can only be used in connection with assets that present environmental benefits and appropriate green credentials. Additional monitoring and reporting obligations on the environmental benefits delivered by such assets will be required, which aligns with DORE’s current investment strategy as an Article 9 fund.
  • Round Hill Music Royalty Fund (RHM) says that over the year ended 30 September 2022 its economic NAV per share rose to $1.18 from $1.06. Net revenue for the nine months to 30 September 2022 was up 38.3% year on year, to $23.2m of which $10.3m related to the quarter ended 30 September. The company’s dividend cover was 0.9x. [All these numbers look encouraging, although it’s a random collection of quarterly, nine-month and annual figures, with no like-for-like figures split out and nothing for the final quarter of 2022, so the picture isn’t completely clear. The next set of results should provide more clarity.]
  • ICG Longbow Senior Secured UK Property Debt (LBOW) is handing back 5.50p per share (£6.67m) to its shareholders by way of an issue of redeemable B shares to existing shareholders pro rata to their shareholding as at 3 February 2023, with the cash arriving around 17/2. This will bring the total returned to 37.5p and leave the NAV (as at 31 October 2022) at 60.95p.
  • Harmony Energy Income (HEIT) is merging its C shares and ordinary shares on the basis of 0.786735 new ordinary shares for every 1 C Share held. 17,128,295 new shares will be issued on 31 January 2023. The trust’s Broadditch project (11 MW / 22 MWh) is fully installed and is scheduled to be energised by the end of January with commercial operations commencing before the end of February. The construction of the 20 MW / 40 MWh Farnham project has progressed well and all of the Tesla Megapack battery modules are on site. Whilst the construction of the project has remained on track, the energisation date has been rescheduled from late Q1 to Q2 due to the relevant DNO determining that, in the current high energy demand environment, it cannot permit the connection (and associated grid outage) of the project at this time. This is expected to move the commercial operations date back by several weeks. The company’s Pillswood project is making decent money from the volatility of energy prices.

We also have news of new investments by JLEN Environmental Assets and HydrogenOne Capital Growth

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