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.
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
For further information, please contact:
Candover Investments plc
, CEO +44 20 7489 9848