News Column

Half-yearly Report June 2014

August 26, 2014

27th August 2014Candover Investments plc Interim results for the half year ended 30th June 2014 * Net assets per share of 722p (31st December 2013: 715p) a 1.0% increase over the six months to 30th June 2014. * Candover's* investment portfolio increased in value by 1.2 million, an increase of 0.7% since the year end. Constant currency valuations increased by 7.8 million, offset by unfavourable currency movements on investments totalling 6.6 million. * Disposal of Innovia and DX Group delivered total proceeds of 20.2 million in H1. Completion of Ono in H2 is expected to deliver 5.2 million of proceeds. * Net debt reduced to 30.4 million at 30th June 2014 (31st December 2013: 47.7 million) reflecting the benefit of realisations offset by interest paid and operating expenses. Loan-to-value ratio improved to 17.2% compared to 24.9% at the year end. Malcolm Fallen, Chief Executive Officer, said: "The first half of the year has seen the successful realisation by Arle** of two investments, leading to a marked reduction in the Company's net debt, with a further disposal completing in July. Our growth in net assets has been muted by the strength of Sterling which may continue to create volatility in the future. The improvement in the trading performance of the portfolio is encouraging as Arle continues to focus on positioning the portfolio companies for realisation." Ends. * Candover means Candover Investments plc and/or one or more of its subsidiaries ** Arle means Arle Capital Partners Limited For further information, please contact: Candover Investments plc Malcolm Fallen, CEO +44 20 7489 9848 Business and financial review Overview Net assets per share increased by 1.0% or 7p per share during the six months to 30th June 2014 compared to a decrease in the FTSE All-Share of 0.3% over the same period. NAV growth is dependent upon the valuation of the portfolio managed by Arle increasing, thereby offsetting the costs of running the business. Overall, the value of the portfolio increased by 7.8 million on a constant currency basis, offset by 6.6 million due to unfavourable currency effects as the Euro and the US Dollar weakened against Sterling. Improved trading at Parques Reunidos ("Parques") led to an uplift of 5.1 million, or 13.6%, on a constant currency basis. Arle has been successful in progressing realisations during the first half of 2014. The disposals of Innovia and DX raised 20.2 million, including the carried interest crystallised by the Innovia transaction. The conditional sale of Ono to Vodafone was announced in March 2014, and completion has now occurred; proceeds of 5.2 million are expected to be received in the second half, including further carried interest. Expro has made an initial filing with the SEC as a first step towards a potential IPO in the United States. Candover's net debt decreased to 30.4 million during the first six months, down from 47.7 million at the year end, following the realisation of Innovia and DX Group, offset by interest paid and operating expenses. The loan-to-value ratio of the Company's net debt decreased correspondingly, from 24.9% at the year end to 17.2% at 30th June 2014. The Company successfully refinanced its 2007 US private placement loan notes in December 2013 with the issue of new US private placement loan notes maturing in December 2015. Based on the current realisation projections provided by Arle, the Company should have access to sufficient resources to meet the obligations under the terms of the new note purchase agreement. However, as the Company does not (and cannot) control the realisation process, there remains a risk that, if insufficient realisations are achieved by our investment manager over the next eighteen months, new sources of finance might be required to provide additional liquidity. Following the refinancing, Candover's foreign currency exposure has been simplified. All of the Company's debt is now US dollar denominated, partially offsetting the currency exposure of Expro, a US dollar investment. The remaining investments, other than Get, are Euro denominated. As a consequence, this unhedged position, relative to Sterling, may continue to create volatility in Candover's NAV, as experienced over the first six months of 2014. Net asset value per share Net assets per share increased by 1.0% from 715p to 722p over the six months to 30th June 2014. The increase of 7p per share was split between the gain on disposal of investments (19p), an increase in constant currency investment values (36p), overall adverse currency movements (26p), and the impact of ongoing business costs (22p). In the first half, these costs comprised loan note interest, the investment manager's fee and general administration costs. Table 1 m p/share Net asset value at 31st December 2013 as reported 156.3 715 Gain on financial instruments and other income(1) 11.8 55 Recurring administrative expenses (2.1) (10) Finance costs (2.4) (11) Others (including tax) (0.3) (1) Currency impact: - Unrealised investments (6.6) (30) - Retranslation of cash and cash equivalents (0.4) (2) - Translation of loan 1.4 6 Net asset value at 30th June 2014 as reported 157.7 722 (1) Stated before unfavourable currency impact of 6.6million Investments The valuation of investments at 30th June 2014, including carried interest and accrued loan note interest, was 176.3 million. Valuations increased for the period by 7.8 million, before currency effects and after adjusting for disposals, representing an increase of 4.5% in the value of these investments over their 31st December 2013 value. The overall increase in the valuation of the portfolio in the period was 1.2 million representing an increase of 0.7% which included 6.6 million of unfavourable foreign currency movements. Table 2 m Investments at 31st December 2013 191.2 Disposals at valuation (16.1) Additions at cost - Investments adjusted for additions and disposals 175.1 Revaluation of investments: - Valuation movements before currency impact 7.8 - Currency impact on unrealised investments (6.6) Investments at 30th June 2014 176.3 Net debt position and loan-to-value covenant Candover's net debt has decreased from 47.7 million as at 31st December 2013 to 30.4 million as at 30th June 2014. This reflects the benefit of the realisation of Innovia and DX Group together with favourable exchange rate movements of 1.0 million in the period, offset by interest paid of 2.0 million, and operating expenses. The loan-to-value ratio of the Company's net debt at 30th June 2014 improved to 17.2% compared to 24.9% at the year end. Table 3 30th June 31st December 2014 2013 m m Loans and borrowings 47.8 48.6 Deferred costs 1.5 2.1 Value of bonds 49.3 50.7 Cash (18.9) (3.0) Net debt 30.4 47.7 Profit before and after tax Net profit before tax and exceptional non-recurring costs for the period was 8.7 million compared to a profit of nil in the comparable period. Including capitalised costs of 1.8 million (2013: 2.1 million), total administrative and finance costs in the period were 4.5 million (2013: 5.3 million), which included 1.2 million (2013: 1.2 million) of management fees payable to Arle linked to the value of investments managed and 2.4 million of financing costs (2013: 3.0 million). The reduction in financing costs reflects the benefit of the refinancing of the US private placement loan notes completed in December 2013. Exceptional non-recurring loss of 0.1 million comprises the effect of the unwinding of the discount applied to the property provision. Board There were no changes to the Board during the period. Dividend The Board is not recommending a dividend payment, but the payments of dividends in the future will be reviewed in the context of our focus on delivering a progressive return of cash to shareholders over time. Outlook The combination of continuing improvement in the trading performance of the portfolio, together with the successful realisation of three investments since the start of 2014, offers encouragement, albeit tempered by the uncertainty created by recent global events. As Arle continues to focus on positioning the portfolio for realisation, our objective remains to optimise the long term value of our investments by returning cash to shareholders as soon as practical. Manager's report Arle Capital Partners Limited Arle is a private equity partnership with two distinct areas of focus. First, Arle is a diversified private equity asset manager, and in addition to acting as investment manager for the Candover Funds, manages special purpose vehicles. Second, Arle is a mid-market energy investor in buyouts, carve-outs and platform creations. Portfolio overview The first half of 2014 was busy both operationally and in terms of M&A activity. Two portfolio companies were realised during the period, generating total proceeds of 174.7 million (Candover's share 20.2 million including carried interest). In February, DX Group floated on AIM at a market capitalisation of 200 million. The Candover Funds sold their full share allocation at listing. In April, Innovia was sold to a syndicate of international investors managed by Arle for an enterprise value of 498 million. In March, the sale of Ono to Vodafone was announced with the transaction completing post the period end. Following the sale of Ono, all the portfolio companies in the Candover 2001 Fund will have been sold. In aggregate, the three sales are expected to generate proceeds of 216.7 million (Candover's share: 25.4 million including carried interest), representing a 25% increase over the combined valuation at 31st December 2013. Arle actively manages each of its portfolio companies, working closely with management to optimise performance. During the period, new CEO's were appointed at Fokker Technologies, Hilding Anders and Parques Reunidos ("Parques"). In addition, Arle strengthened the capital structures of a number of portfolio companies as well as assisting management with a number of acquisitions and divestments. The Candover Funds portfolio continued to perform well during the first half of 2014. The portfolio collectively reported a 1.5% increase in revenues and an 8.5% increase in EBITDA in the 12 months ended 30th June 2014. This was driven by strong earnings growth by Expro and Parques. The continued improved performance has resulted in a 7% increase in the value of the Candover Funds' portfolio managed by Arle compared to the valuation at 31st December 2013. The value of Candover's portfolio of co-investments remained flat, mostly due to negative foreign currency movement in the period as Candover reports in Sterling. As at 30th June 2014, the four largest investments in Candover's portfolio, Expro, Stork Group, Parques and Technogym together represented 90.5% of the portfolio. Expro InternationalExpro is an international oilfield services company with a significant focus on subsea. Expro continued to trade well in the year ended 31st March 2014. Revenues increased by 15% to $1.4 billion with EBITDA increasing by 32% to $385 million. On 30th June 2014, Expro filed a registration statement with the Securities Exchange Commission (SEC). This was the first step in a potential IPO in the United States. While the registration statement is under review, in line with SEC requirements, no further public comment will be made on the registration process. Candover's valuation of Expro reduced by 0.4 million due to the dilution suffered of not following on part of its original investment made alongside the Candover 2008 Fund. This is before adverse currency movements of 2.2 million (total: 12p per share). Parques Reunidos Parques is a leading operator and owner of attraction parks around the world. In Europe, Parques made a strong start to the fiscal year due to successful campaigns over Halloween, Christmas and Easter driven by the continued recovery in Spain. The US business is more seasonal with the larger theme parks and water parks only opening in late-May. In June, the company successfully amended and extended Parques' European debt facilities and an additional injection of shareholder capital, provided in mid-2013, was deployed to drive organic growth and enhance the customer experience. In January, Yann CaillÈre was appointed CEO. He has a long and successful international track record in senior hospitality and leisure industry roles at companies including the Accor Group, Disney and Louvre Hotels. Post the period end, Parques acquired Miami Seaquarium, expanding further its portfolio of marine life parks. The acquisition was funded from existing cash reserves in its US business. The valuation has been written up by 5.1 million before adverse currency movements of 1.6 million (total: 16p per share). Stork GroupStork Group comprises two discrete and separately financed entities: Stork and Fokker Technologies. Stork (formerly Stork Technical Services) Stork is a global provider of knowledge-based asset integrity services focussing on the oil & gas, chemical and power markets. Trading has improved significantly during the period with good progress being made on the initiatives put in place by the new management team in 2013. Consequently, EBITDA for the six months to 30th June 2014 was significantly ahead of prior year. Fokker Technologies ("Fokker") Fokker is an aerospace specialist which designs, develops and manufactures highly engineered aircraft systems and components for aircraft manufacturers and provides through-life aircraft fleet support services for the aerospace industry. Fokker has traded broadly in line with expectations. In April, Hans BÜthker was appointed CEO. He has enjoyed a long career and has held a number of senior positions within Stork and Fokker, most recently as COO of Fokker Technologies. Overall, the valuation of Stork was held flat before adverse foreign exchange movements of 1.4 million (total: 6p per share). TechnogymTechnogym is the global leader in premium fitness equipment and wellness solutions. It traded ahead of expectations during the first half of 2014. The valuation was held flat before adverse currency movements of 0.7 million (total: 3p per share). Hilding Anders Hilding Anders is Europe's largest bed and mattress manufacturer and is headquartered in Sweden. Hilding Anders performed well during the period, with sales and EBITDA ahead of prior year. In January, Alex Myers was appointed CEO. He has held a number of senior roles and prior to joining Hilding Anders was President & CEO of ArjoHuntleigh and EVP of Getinge Group. The valuation was held flat before adverse foreign exchange movements of 0.2 million (total: 1p per share). Other Candover's interest in the Candover 2001 Fund carried interest increased by 1.0 million (5p per share) to 2.1 million. Realisations Two portfolio companies were realised during the first half of 2014, and agreement was reached to sell Ono, which completed post the period end. In February, DX Group floated on AIM at a market capitalisation of 200 million. The Candover Funds sold their full share allocation at listing, generating proceeds of 34.4 million of which Candover's share was 3.4 million. The sale of Innovia to a syndicate of international investors managed by Arle in April for an enterprise value of 498 million generated proceeds of 140.3 million of which Candover's share was 16.8 million including carried interest. The sale of Ono to Vodafone completed in July 2014. The sale is expected to generate proceeds of 42.0 million of which Candover's share is expected to be 5.2 million including carried interest. Table 1 Candover Total Type Proceeds m m Portfolio Company DX Group 3.4 34.4 IPO Innovia Group 10.5 115.3 Secondary sale Candover 2001 Fund 6.3 25.0 Crystallisation of carried carried interest interest Total realisations to 30 June 20.2 174.7 2014 Ono(1) 3.4 34.6 Trade sale Candover 2001 Fund(1) 1.8 7.4 Crystallisation of carried carried interest interest Total realisations in 2014 25.4 216.7 (1) Estimated proceeds; final amount will depend on : exchange rate Valuations The investments are largely based in Western Europe but their operations extend into more than 150 countries. The investments are in the energy, services and industrial sectors, with the principal exposure being to the energy sector. The co-investments managed by Arle on behalf of Candover are shown in Table 2. Table 2 Portfolio valuations Residualcost(1) Valuation Additions Valuation Valuation Valuation Valuation at 31st and movement movement at 30th movement December disposals excluding attributable June 2014 pence per Portfolio m 2013 FX(2) to FX(2) m share(2) company m m m m Expro 92.1 72.6 - (0.4) (2.2) 70.0 (12) International Parques 30.0 37.4 - 5.1 (1.6) 40.9 16 Reunidos Stork Group 42.5 34.5 - - (1.4) 33.1 (6) Technogym 29.2 16.2 - - (0.7) 15.5 (3) Hilding 24.3 5.7 - - (0.2) 5.5 (1) Anders GET 1.2 4.8 - 0.6 (0.2) 5.2 2 Ono 2.2 2.2 1.3 (0.1) 3.4 5 Alma 15.3 - - - - - All 236.8 173.4 6.6 (6.4) 173.6 1 investments(3) Candover 2001 - 5.6 (4.5) 1.2 (0.2) 2.1 5 Fund carried interest Other 42.1 12.2 (11.6) - - 0.6 - investments(4) Total 278.9 191.2 (16.1) 7.8 (6.6) 176.3 6 (1) Residual cost is original cost less realisations to date (2) Compared to the valuation at 31st December 2013 or acquisition date, if later (3) Excluding Candover 2001 Fund carried interest (4) Represents assets sold in H1 2014 and other co-investments Outlook During the remainder of 2014, Arle will continue to focus on optimising performance across the portfolio, ensuring that each business is well positioned to maximise growth. Arle will continue to work towards realising the remaining investments in the Funds at the appropriate time. Arle Capital Partners Limited27th August 2014Candover portfolio Analysis by value at 30th June 2014 By valuation method By sector 1. Multiple of earnings 100% 1. Industrials 29% 2. Services 30% 3. Energy 41% By region By age 1. United Kingdom 40% 1. Greater than 5 years 100% 2. Spain 26% 3. Benelux 19% 4. Italy 9% 5. Nordic 6% Candover portfolio at 30th June 2014 Movement Effective Residual from equity % of Date of cost of Directors' 31st Dec interest Candover's Basis of Investment investment investment valuation 2013(1) (fully net assets valuation m m m diluted) Expro Jul-08 92.1 70.0 (2.6) 4.7 44.4 Multiple International of Oilfield services earnings Parques Reunidos Mar-07 30.0 40.9 3.5 3.9 25.9 Multiple Operator of of attraction parks earnings Stork Group Jan-08 42.5 33.1 (1.4) 4.6 21.0 Multiple Engineering of conglomerate earnings Technogym Aug-08 29.2 15.5 (0.7) 3.2 9.8 Multiple Premium fitness of equipment and earnings wellness products Hilding Anders Dec-06 24.3 5.5 (0.2) 4.3 3.5 Multiple Bed and mattress of manufacturer earnings GET Dec-07 1.2 5.2 0.4 0.5 3.3 Multiple Norwegian cable of network operator earnings Ono Nov-05 2.2 3.4 1.2 0.1 2.2 Multiple Spanish cable of operator earnings Alma Consulting Dec-07 15.3 - - 4.9 - Multiple Group of Cost consultancy earnings (1) Adjusted for additions and disposals in the period Principal risks and uncertainties Details of the principal risks and uncertainties facing the Group were set out in the Risk review on pages 8 to 11 of the 2013 Report and Accounts, a copy of which is available on our website (www.candoverinvestments.com). The principal risks and uncertainties identified in the 2013 Report and Accounts, and the policies and procedures for minimising these risks and uncertainties, remain unchanged and each of them has the potential to affect the Group's results during the remainder of 2014. Our views on the current market conditions are reflected in the Business and financial review and the Manager's report. Statement of Directors' responsibilities The Directors of Candover Investments plc confirm that, to the best of their knowledge, the condensed set of financial statements in this interim report have been prepared in accordance with International Accounting Standard 34 `Interim Financial Reporting' as adopted by the EU, and give a fair view of the assets, liabilities, financial position and profit or loss of Candover Investments plc, and the undertakings included in the consolidation as a whole, and that the Manager's report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R. By order of the Board Ipes (UK) Limited Company Secretary 27th August 2014 Independent review report to Candover Investments plc Introduction We have reviewed the condensed set of financial statements in the half-yearly financial report of Candover Investments plc for the six months ended 30th June 2014 which comprises the Group statement of comprehensive income, Group statement of changes in equity, Group statement of financial position, Group cash flow statement and the related notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. This report is made solely to the Company's members, as a body, in accordance with International Standard on Review Engagements (UK and Ireland) 2410, `Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our review work, for this report, or for the conclusion we have formed. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, `Interim Financial Reporting', as adopted by the European Union. Our responsibility Our responsibility is to express a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, `Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30th June 2014 is not prepared, in all material respects, in accordance with International Accounting Standard 34, `Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. Grant Thornton UK LLP Auditor London27th August 2014 Group statement of comprehensive income for the period ended 30th June 2014 million Six months to 30th Six months to Year to 31st June 2014 30th June 2013 December 2013 Unaudited Revenue Capital Total Revenue Capital Total Revenue Capital Total Gain/(loss) on financial instruments at fair value through profit and loss Realised gains - 3.5 3.5 - - - - (1.6) (1.6) /(losses) Unrealised - (10.3) (10.3) - 13.4 13.4 - 27.7 27.7 (losses)/gains - (6.8) (6.8) - 13.4 13.4 - 26.1 26.1 Revenue Investment and 11.4 - 11.4 3.2 - 3.2 10.2 - 10.2 other income Recurring (1.5) (0.6) (2.1) (1.7) (0.6) (2.3) (3.7) (1.2) (4.9) administrative expenses Exceptional (0.1) - (0.1) (0.4) - (0.4) (0.6) - (0.6) non-recurring losses Profit/(loss) 9.8 (7.4) 2.4 1.1 12.8 13.9 5.9 24.9 30.8 before finance costs and taxation Finance costs (1.2) (1.2) (2.4) (1.5) (1.5) (3.0) (5.4) (5.4) (10.8) Exchange - 1.4 1.4 - (6.7) (6.7) - 1.5 1.5 movements on borrowings Profit/(loss) 8.6 (7.2) 1.4 (0.4) 4.6 4.2 0.5 21.0 21.5 before taxation Analysed between: Profit/(loss) 8.7 (7.2) 1.5 - 4.6 4.6 1.1 21.0 22.1 before exceptional non-recurring costs Exceptional (0.1) - (0.1) (0.4) - (0.4) (0.6) - (0.6) non-recurring losses Taxation - - - - - - 2.0 - 2.0 Profit/(loss) 8.6 (7.2) 1.4 (0.4) 4.6 4.2 2.5 21.0 23.5 after taxation Total 8.6 (7.2) 1.4 (0.4) 4.6 4.2 2.5 21.0 23.5 comprehensive income Earnings per ordinary share: Total earnings 39p (32p) 7p (2p) 21p 19p 11p 96p 107p per share - basic and diluted Dividends paid - - - - - - - - - ( millions) The total column represents the Group statement of comprehensive income under IFRS. The supplementary revenue and capital columns are presented for information purposes as recommended by the Statement of Recommended Practice issued by the Association of Investment Companies All of the gain for the period and the total comprehensive income for the period are attributable to the owners of the Company No interim dividend is proposed Group statement of changes in equity for the period ended 30th June 2014 Unaudited Called Share Other Capital Capital Revenue Total up share premium reserves reserves - reserves - reserve equity capital account realised unrealised m m m m m m m Balance at 1st January 2014 5.5 1.2 (0.1) 318.1 (159.2) (9.2) 156.3 Net revenue after tax - - - - - 8.6 8.6 Unrealised loss on financial - - - - (10.3) - (10.3) instruments Realised (loss)/gain on financial - - - (7.3) 10.8 - 3.5 instruments Exchange movements on borrowing - - - - 1.4 - 1.4 Costs net of tax - - - (1.8) - - (1.8) Profit/(loss) after tax - - - (9.1) 1.9 8.6 1.4 Total comprehensive income - - - (9.1) 1.9 8.6 1.4 Balance at 30th June 2014 5.5 1.2 (0.1) 309.0 (157.3) (0.6) 157.7 Unaudited Balance at 1st January 2013 5.5 1.2 (0.1) 320.4 (182.5) (11.7) 132.8 Net revenue after tax - - - - - (0.4) (0.4) Unrealised gain on financial - - - - 13.4 - 13.4 instruments Realised gain/(loss) on financial - - - 0.3 (0.3) - - instruments Exchange movements on borrowing - - - - (6.7) - (6.7) Costs net of tax - - - (2.1) - - (2.1) Profit/(loss) after tax - - - (1.8) 6.4 (0.4) 4.2 Total comprehensive income - - - (1.8) 6.4 (0.4) 4.2 Balance at 30th June 2013 5.5 1.2 (0.1) 318.6 (176.1) (12.1) 137.0 Audited Balance at 1st January 2013 5.5 1.2 (0.1) 320.4 (182.5) (11.7) 132.8 Net revenue after tax - - - - - 2.5 2.5 Unrealised gain on financial - - - - 27.7 - 27.7 instruments Realised gain/(loss) on financial - - - 4.3 (5.9) - (1.6) instruments Exchange movements on borrowing - - - - 1.5 - 1.5 Costs net of tax - - - (6.6) - - (6.6) Profit/(loss) after tax - - - (2.3) 23.3 2.5 23.5 Total comprehensive income - - - (2.3) 23.3 2.5 23.5 Balance at 31st December 2013 5.5 1.2 (0.1) 318.1 (159.2) (9.2) 156.3 Group statement of financial position at 30th June 2014 million Notes 30th June 30th June 31st December Unaudited 2014 2013 2013 Non-current assets Financial investments designated at fair value through profit and loss Investee companies 4 173.8 166.6 185.2 Other financial investments 4 2.5 9.6 6.0 176.3 176.2 191.2 Trade and other receivables 9.0 8.9 9.0 Deferred tax asset 3.0 1.0 3.0 188.3 186.1 203.2 Current assets Trade and other receivables 0.2 0.3 1.4 Current tax asset 0.1 0.1 0.1 Cash and cash equivalents 18.9 113.2 3.0 19.2 113.6 4.5 Current liabilities Trade and other payables (0.6) (4.4) (1.2) Provisions (1.4) (2.1) (1.6) (2.0) (6.5) (2.8) Net current assets 17.2 107.1 1.7 Total assets less current 205.5 293.2 204.9 liabilities Non-current liabilities Loans and borrowings (47.8) (156.2) (48.6) Net assets 157.7 137.0 156.3 Equity attributable to equity holders Called up share capital 5.5 5.5 5.5 Share premium account 1.2 1.2 1.2 Other reserves (0.1) (0.1) (0.1) Capital reserve - realised 309.0 318.6 318.1 Capital reserve - unrealised (157.3) (176.1) (159.2) Revenue reserve (0.6) (12.1) (9.2) Total equity 157.7 137.0 156.3 Net asset value per share Basic 722p 627p 715p Diluted 722p 627p 715p Group cash flow statement for the period ended 30th June 2014 million Notes Six months to Six months to Year to Unaudited 30th June 30th June 31st December 2014 2013 2013 Cash flows from operating activities Cash flow from operations 3 0.4 (3.1) (4.5) Interest paid (2.0) (5.0) (12.2) Net cash outflow from operating activities (1.6) (8.1) (16.7) Cash flows from investing activities Purchase of financial investments - - (5.0) Sale of financial investments 17.9 - 9.8 Net cash inflow from investing activities 17.9 - 4.8 Cash flows from financing activities Loan notes issued - - 49.2 Loan notes repaid - - (150.7) Net cash outflow from financing activities - - (101.5) Increase/(decrease) in cash and cash 16.3 (8.1) (113.4) equivalents Opening cash and cash equivalents 3.0 117.7 117.7 Effect of exchange rates and revaluation (0.4) 3.6 (1.3) on cash and cash equivalents Closing cash and cash equivalents 18.9 113.2 3.0 Notes to the financial statements for the period ended 30th June 2014 Note 1 General information This condensed consolidated half-year financial information does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31st December 2013 were approved on 27th March 2014. These accounts, which contained an unqualified audit report under Section 498 of the Companies Act 2006 and which did not make any statements under Section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006. Note 2 Basis of accounting The Group financial statements are prepared under International Financial Reporting Standards ('IFRS') as adopted by the European Union. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the accounts for the Group for the year ended 31st December 2013, and in accordance with IAS 34 `Interim Financial Reporting' (Revised). Note 3 Reconciliation of operating income to net cash flow from operating activities million Six months to Six months to Year to 30th June 2014 30th June 2013 31st December 2013 Total income 11.4 3.2 10.2 Administrative expenses (2.3) (2.3) (4.9) Operating profit 9.1 0.9 5.3 Increase in trade and (7.8) (2.9) (6.4) other receivables(1) Decrease in trade and (0.9) (1.1) (3.4) other payables Net cash inflow/(outflow) 0.4 (3.1) (4.5) from operating activities (1) Includes accrued portfolio income recognised within Financial Investments shown under non-current assets on the Group statement of financial position. Note 4 - Financial investments designated at fair value through profit and loss million Six months to Six months to Year to 30th June 2014 30th June 2013 31st December 2013 Opening valuation 191.2 163.5 163.5 Disposals at valuation (16.1) - (12.1) Additions at cost - - 5.0 Valuation movements 1.2 12.7 34.8 Closing valuation 176.3 176.2 191.2 Note 5 Related party transactions The nature of the Company's interest in the Candover 1997, 2001, 2005 and 2008 Funds is disclosed in note 9 on page 82 of the 2013 Report and Accounts. As at 30th June 2014, Candover's investments as a Special Limited Partner in the Candover 2001 and 2005 Funds were valued at 2.1 million and 0.4 million respectively (31st December 2013: Candover 2001 Fund 5.6 million, and Candover 2005 Fund 0.4 million). The movement in valuation of the Candover 2001 Fund is due mainly to the carried interest received on disposal of the underlying investments. Note 6 Outstanding commitments At 30th June 2014, the Company had no outstanding commitment in the Candover 2005 Fund (31st December 2013: nil million). Note 7 Subsequent events In March 2014, Vodafone announced that it would acquire Ono, subject to regulatory clearances. Subsequent to the period end, the regulatory clearances were received and the transaction completed. The disposal of Ono, the last investment held by the 2001 Fund, is expected to deliver proceeds of 5.2 million to Candover, including carried interest. END The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. 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