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CANDOVER INVESTMENTS PLC - Interim Management Statement

May 12, 2014



12 May 2014Candover Investments plc - Interim Management Statement Candover Investments plc (`Candover' or the `Company') today issues its Interim Management Statement in accordance with FCA Disclosure and Transparency Rule 4.3. This statement which, as usual, is unaudited, relates to the period from 1 January 2014 to the date of this announcement. Portfolio valuation and net debt Candover's investment portfolio was last valued as of 31 December 2013, with a net asset value per share of 715p. The next valuation of the Company's assets will be conducted as of 30 June 2014. Consistent with its valuation policy the Company will continue to apply earnings based valuations to portfolio businesses and will appropriately value the carried interest of the Company in the Candover Funds. Over the course of the first quarter of 2014, the net effect of currency movements on the value of the portfolio has been to reduce its value by approximately 1.7 million, following appreciation of Sterling relative to the Euro and US dollar. Net debt at 31 March 2014 was 45.1 million, a reduction of 2.6 million during the first quarter of 2014. This reflected the inflow from the realisation of Candover's investment in DX (Group) plc ("DX"), the favourable impact on net debt of the appreciation of Sterling relative to the US dollar offset by the Company's running costs. On 28 April 2014 the disposal of Innovia was announced, the proceeds of which will reduce the Company's net debt by approximately 16.8 million. Realisation activity During Q1 2014 Candover received 3.4 million following the flotation of DX, a Candover 2005 Fund investment. In respect of the Candover 2001 Fund, Arle has made significant progress in bringing the Fund to a close, with the disposal of Innovia announced in April and Vodafone announcing in March 2014 that it would acquire ONO, subject to regulatory clearances. The disposal of ONO, the last investment held by the 2001 Fund, if completed, will deliver proceeds of approximately 5.5 million to Candover. Portfolio update and trading The five largest investments, comprising Expro International (`Expro'), Parques Reunidos, Stork BV, Technogym and Hilding Anders, together represent 96% of the overall value of the portfolio, excluding carried interest. The portfolio as a whole continues to perform well and on a rolling Last Twelve Months, or `LTM', basis for the twelve months to 31 March 2014, the combined earnings for the five largest investee companies increased by 5.9% compared to the twelve months to 31 March 2013, and revenues rose by 2.7%. This represents an increase of respectively 0.5% and 2.8% compared to the LTM revenue and LTM EBITDA at 31 December 2013. In aggregate the five largest portfolio companies de-leveraged by one-fifth of a turn of EBITDA over the twelve months to 31 March 2014 to 5.7x. Both Stork Technical Services, part of Stork BV, and Expro have publicly listed debt and will be publishing results to 31 March 2013, on 26 May and 28 May respectively. Ends. For further information, please contact: Candover Investments plc



Malcolm Fallen, CEO +44 20 7489 9848


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Source: PR Newswire (UK Disclosure)


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