UIL Limited (ULT) announced its annual results for the year ending 30 June 2023:
- ULT reported a negative NAV total return of (20.6%) for the twelve months, and share price total return of (18.5%). ULT’s discount was 27.5% as of end June 2023, compared to 28.1% the year prior.
- ULT performance can be in part attributed to poor investment performance, which cost (12.0%), but also the impact of its repayment of debt and ZDP shares. Specifically ULT redeemed its 2022 ZDP shares as well as reduced its bank debt by £12.5m, As a result gearing decreased to 83.5% as at 30 June 2023 from 89.5% as at 30 June 2022.
- ULT paid a divided of 8.0p per share, in line with the payment made in the prior year.
- ULT’s investment in level 3 companies, its unlisted investments, was 56.0% (30 June 2022: 57.4%) of the total portfolio. The total value reduced from £238.9m as at 30 June 2022 to £172.7m as at 30 June 2023, mainly as a result of a decrease in Somers’ valuation due to its exposure to digital assets which fell in value over the year.
- During the year to 30 June 2023, ULT invested £120.6m and realised £188.4m, including loans repaid by Somers and Zeta, its invested companies. Purchases over the year included investments in Resimac, West Hamilton and TMH.
Charles Jillings, one of ULT’s managers, commented:
“There continues to be significant disruption to business models from blockchain to AI through to nanotechnology and financial technology. These disruptions are shortening the product life cycle and enabling rapid change to products and processes. ICM is encouraging its investee companies to embrace these opportunities and the consequent journey. UIL is seeking investments that are capital light, have high barriers to entry and business models that are scalable.”