LONDON (Alliance News) - Dunedin Enterprise Investment Trust PLC, a private equity investment trust specialising in mid-market buyouts, Thursday said the outlook for the UK market in 2014 is for a stronger second-half and that the manager, Dunedin LLP, is currently considering a number of new investment opportunities.
"The UK economy appears to be relatively stable. GDP growth for 2014 is now forecast to reach 3.0% with growth for 2015 forecast at 2.6%. Unemployment is forecast to reduce from 6.2% in 2014 to 5.8% in 2015. Against this economic background the majority of portfolio companies are forecasting an increased EBITDA, with the average increase across the portfolio being forecast at 8%," Dunedin LLP said in its review of the six months ended June 30.
During the first-half, the trust's unaudited net asset value per share decreased by 4.6% to 504.8 pence. When dividends paid in the half-year are included, this equates to a total return of negative 1.7%.
Over the same period, the share price of Dunedin Enterprise decreased by 3.1% to 422.63 pence. The FTSE Small Cap index decreased by 0.8% over the same period. The share price of 422.63p equates to a discount of 16.3% to NAV and has reduced from 17.6% at the end of 2013.
In the six months to the end of June Dunedin Enterprise invested a total of GBP9.8 million and realised GBP2.3 million from investments.
The trust had outstanding commitments to limited partnership funds of GBP68.3 million at the end of June, consisting of GBP55.6 million to Dunedin managed funds and GBP12.7 million to European funds. It is expected that approximately GBP48 million of the total commitment will be drawn.
The trust reported GBP2.3 million of realisations in the half-year and new investment of GBP9.8 million.
The trust's shares were Thursday quoted down 0.02% at 405.90 pence.