REG - CT Private Eq Trust - Interim Results and dividend Announcement
29/08/2024 07:00
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RNS Number : 0525C CT Private Equity Trust PLC 29 August 2024
To: Stock Exchange For immediate release:
29 August 2024
CT Private Equity Trust PLC
LEI: 2138009FW98WZFCGRN66
Unaudited results for the half year ended 30 June 2024
Financial Highlights
· NAV of 694.28p per Ordinary Share as at 30 June 2024 reflecting a
total return for the six-month period of +0.8%.
· Dividend yield of 6.5% based on the period end share price (1).
· Strong realisations and associated income in the period of £52.3m.
This represents an increase of 31.4% compared to the same period last year.
· Realisations in the first half at a 35% premium to prior valuation.
· Share price total return for the six-month period of -4.5%.
· Total quarterly dividends of 14.02p per Ordinary Share year to date.
· Quarterly dividend of 7.01p paid on 31 July 2024
· Quarterly dividend of 7.01p to be paid on 31 October 2024
· As at 30 June 2024 net debt was £91.3 million equivalent to a
gearing level of 15.5%.
(1) Calculated as dividends of 7.01p paid on 31 January 2024, 7.01p
paid on 30 April 2024, 7.01p paid on 31 July 2024 and 7.01p payable on 31
October 2024, divided by the Company's share price of 433.50p as at 30 June
2024.
Chairman's Statement
Introduction
This report is for the six-month period ended 30 June 2024. At the period end,
the Net Asset Value ("NAV") of CT Private Equity Trust PLC ("the Company") was
£496.4 million giving a NAV per share of 694.28p. Taking account of dividends
paid the NAV total return for the six-month period was 0.8%. With the
discount widening, the share price total return for the period was -4.5%.
At 30 June the Company had net debt of £91.3m. The outstanding undrawn
commitments were £206.9m of which £25.7m was to funds where the investment
period had expired.
A dividend of 7.01p was paid on 31 July 2024 and in accordance with the
Company's dividend policy, the Board declares a further quarterly dividend of
7.01p per ordinary share, payable on 31 October 2024 to Shareholders on the
register on 4 October 2024 with an ex-dividend date of 3 October 2024.
Together with the last three dividends paid this represents a dividend yield
of 6.5% based on the period end share price.
For the six-month period ended 30 June 2024, the Company has recorded a small
positive NAV total return. This is after a negative foreign exchange influence
at the portfolio level of around 1.0% principally as a result of the euro
weakening against sterling.
After a period of adjustment precipitated by higher inflation, higher interest
rates and some external events creating uncertainty there now appears to be a
mild but definite pick-up in activity. The clearest manifestation in our
portfolio is the substantial increase in realisations over the course of this
reporting period with some more significant ones to come in the near future.
Realisations are usually at a significant premium to recent carrying value and
so have the benefit of enhancing NAV as well as strengthening the balance
sheet and creating more shareholder value.
The price of private companies, represented by multiples of profit, has
gradually moderated, whilst the fundamentals of the investee companies has
generally continued to improve, making investment more attractive. There are
many investable funds and co-investments being appraised by our managers.
Experience shows that investments made during, or immediately after, economic
slowdowns usually perform very well. Judicious husbanding of capital is
essential to have the resources to take these opportunities as they arise.
Your Company is well resourced financially and managerially to find and
execute the best of these opportunities.
Financing
To reflect the growth in the size of the Company, during February 2024, the
Company entered into a revised loan agreement with RBSI and State Street. The
revised loan agreement increased the €25m term loan with RBSI to €60m and
retained the revolving credit facility with RBSI and State Street at £95m.
The term of the agreement, which was due to expire in June 2024, was extended
to February 2027. At 30 June 2024 exchange rates, these borrowing facilities,
resulted in a total borrowing capacity of approximately £145.9m.
As at 30 June 2024, the Company had cash of £22.1m. With borrowings of
£113.4m from the facilities, net debt was £91.3m, equivalent to a gearing
level of 15.5% (31 December 2023: 14.6%). The total of outstanding undrawn
commitments at 30 June 2024 was £206.9m and, of this, approximately £25.7m
was to funds where the investment period had expired.
Capital Allocation
The Board regularly reviews the Company's capital allocation strategy. This
strategy seeks to balance the benefits of an immediate enhancement to NAV from
share buybacks against the anticipated longer-term returns from new
investment. It must also seek to ensure the maintenance of the Company's
dividend policy, be mindful of the need to maintain an efficient balance sheet
and meet comfortably any drawdown requests from investments.
The Company's innovative dividend policy was introduced in 2012 and remains an
important factor in the Company's capital allocation strategy. The Company
aims to pay quarterly dividends with an annual yield equivalent to not less
than 4% of the average of the published NAVs per Ordinary Share as at the end
of its last four financial quarters prior to the announcement of the relevant
quarterly dividend or, if higher, equal to the highest quarterly dividend
previously paid. Based on the period end share price, the annual dividend
yield for the period is 6.5%.
Since 1 January 2013 the Company has returned £136m of dividends to
Shareholders.
The Company does not have a stated discount management policy. However, the
Board recognises the importance of movements in the Company's discount upon
the return that Shareholders receive and monitors closely the discount's
absolute and relative levels. At the Annual General Meeting held on 29 May
2024, the Board sought and received from Shareholders the authority to buy
back up to 14.99% of the Company's share capital. Buybacks can only be made at
a cost per share which is below the prevailing NAV.
During the six-month period ended 30 June 2024 the Company bought back, to be
held in treasury, a total of 1.25m shares. This equated to 1.7% of the shares
in issue, excluding those held in treasury, at 31 December 2023. The shares
were bought back in two tranches at 460 pence per share and cost, in total,
£5.8m. Based on NAV at time of purchase, these buybacks occurred at an
average discount of 32.8% and resulted in an enhancement to NAV for continuing
Shareholders of £2.8m or 0.6% of NAV. As at 30 June 2024, the share price
discount was 37.6% (31 December 2023: 33.4%).
The Company continues to appraise the relative merits of using capital for
share buybacks versus new investment whilst protecting and growing the
dividend.
Outlook
Your Company has continued to make progress so far this year and there are
good grounds for confidence that further substantial gains will be possible in
the second half. Specifically, the partial hiatus in dealmaking which typified
the period of adjustment last year and the start of this year now appears to
have passed. An uptick in activity is generally positive for asset values.
Whilst new fund raising in the private equity sector is currently fairly
challenging, there remains a very significant amount of committed but
uninvested capital available internationally for the asset class which our
investment partners and their peers will carefully deploy over the next few
years. The returns from the asset class are expected to improve as the
required return from private equity investors has not changed. This is for
strong absolute returns well in excess of what listed markets can offer. As
the expectations of buyers and sellers of private companies converge capital
and expertise will come together with strong management. Their closely aligned
interests provide the drive in the private equity investment model and
underpins long term value creation.
Richard Gray
Chairman
Manager's Review
Introduction
The first half of the year witnessed an improving environment for deal-making
internationally with a distinct increase in activity towards the end of the
period. This reflects the gradual adjustment which the private equity sector,
and those seeking funding from it, have been making to a higher interest rate
environment where economic growth has been absent or modest. The price that
investors will pay and the proportion and availability of debt for buyouts has
come down noticeably. Vendors' price expectations take time to catch up with
this reality and the result is a quiet period for deals followed by a more
active catch up phase. If the underlying investee companies continue to make
good progress on their respective investment theses this can lead to excellent
buying opportunities for careful and experienced investors. Our recent
portfolio activity demonstrates this well.
New Investments
Dealflow of funds and co-investments remains very strong with hundreds of
investment opportunities appraised. These come from investment partners which
we have invested with for many years and from others who are newer in our
network.
Four new fund commitments were made during the first half.
£6.0m has been committed to Corran Environmental II, a UK lower mid-market
growth fund with a focus on clean energy and environmental companies. Corran
is led by former SEP partner Gary Le Sueur and continues with a similar
strategy to SEP's Environmental Energies Fund which he led. Indeed the initial
asset for the fund, Vital Energi, has been acquired from the Environmental
Energies Fund. Vital is a district heating and energy efficiency specialist
which also owns and operates an energy-from-waste plant at Drakelow in
Derbyshire. The initial drawdown covering Vital was £2.8m.
€5.0m has been committed to the Agilitas Human Investment Fund. We have
invested with Agilitas both through funds and co-investments several times
over the years. The Human Investment Fund has an explicit investment objective
of helping people that are disadvantaged or in need. It is an Article 9 fund
under the Sustainable Finance Disclosure Regulation.
€3.0m has been committed to ARCHIMED MED Rise. ARCHIMED is the leading
France-based healthcare specialist with whom we have invested several times.
This fund targets buyouts of small healthcare businesses operating within
attractive niches.
Lastly, we have finalised our commitment to August Equity VI, the latest in a
series of commitments to this accomplished lower mid-market UK buyout
specialist. We have committed £10m to this fund.
There was one new co-investment in the first half and there were five
significant follow-on investments to existing investments.
£4.0m was invested in Accounts IQ, a B2B cloud-based accounting software
provider for mid-sized companies in the UK and Ireland. The company operates a
SaaS model which gives an attractive financial profile enabling the company to
grow by 30% per annum over the last three years. This co-investment (£2.6m)
is led by Axiom I, the enterprise software focussed lower mid-market fund,
which drew an additional £1.4m for investment in Accounts IQ.
The follow-ons for the co-investments were diverse by sector and geography.
£4.2m has been added to Breeze Group (CAS), the Manchester-based manufacturer
of microbiological safety cabinets. The new investment is to fund two
complementary acquisitions. Amercare is a UK-based designer and supplier of
isolators for medical and pharmaceutical applications, including products
which address higher growth subsectors including cell therapy and
radiopharmacy. BioSpherix is a US-based niche provider of cleanroom grade
containment solutions aimed at the cell therapy market. These products control
the environmental conditions to optimise cell health and reproducibility.
£2.2m has been called by deal leader Persistence Capital for MedSpa, the
Canada-based chain of aesthetics clinics to finance three acquisitions.
£0.7m has been added to Aurora Payments Solutions, the US-based digital
payments solution provider for over 20,000 merchants across the USA in sectors
including hospitality, transport and hotel sectors. This additional amount is
our share of a deferred consideration agreement and will be used to fund
several add-on acquisitions that are well progressed.
£0.7m was invested in the US focussed Mexican restaurant chain Rosa Mexicano
which has struggled with a slower than anticipated recovery in custom
post-COVID. This has necessitated focus on a smaller number of more profitable
sites, considerable overhead cut-backs and a new Executive Chairman. Our
investment provides working capital to help enable these changes.
£0.5m has been added to our co-investment in GT Medical, the developer of the
brain cancer treatment GammaTile. This will contribute to the funding for the
recent acquisition of Isoray, the company that makes the radioactive caesium
seeds that are embedded with the GammaTile. The company remains on an exciting
trajectory with a strengthening of management, improved clinical data,
promising early results and supply chain efficiencies.
Despite relatively limited new investment activity in the first half, many of
the funds in our portfolio were active initiating or adding to investments.
Our UK-based funds made a number of new investments with a technology or
scientific theme.
SEP VI invested a combined £1.6m in Braincube, the France-based internet of
industrial things software company which specialises in optimising
manufacturing processes, and Cora, an Irish software company specialising in
project management software for the aerospace, defence, healthcare and life
sciences sectors.
Kester Capital III called £0.7m mainly for GXP Exchange, a leading provider
of good clinical/pharmacovigilance practice audit and related consulting
services to the pharmaceutical and biotech sectors.
MVM VI called £1.4m for three healthcare companies with innovative products;
Bioprotect (biodegradable products which help with the treatment of prostate
cancer), Gynesonics (minimally invasive medical devices for the treatment of
uterine fibroids) and Isotec (carbon composite implants for the treatment of
cancer of the spine).
FPE III called £1.1m during the quarter. £0.5m for refinancing the
subscription facility and £0.5m for Vanda Research, a provider of specialist
research and data products for hedge funds and investment banks.
August Equity V called £0.7m mainly for Polaris Software (formerly StarTraq)
(£0.5m), the provider of compliance software to police and local authorities,
which completed its second add-on acquisition.
In Continental Europe and in North America there were also some interesting
new investments.
Corsair VI, the financial services specialists called £1.1m for MJM, a
leading independent commercial insurance broker in Poland. Also in Poland
Avallon III called £0.6m for MPPK, a dog and cat food company.
There was considerable activity in the Nordics. Verdane Edda III called £0.6m
for two companies; Hornet Security (B2B cloud-based email security products)
and Verified Global (B2B SaaS for digitising business processes around
identification and authorisation). Verdane Capital XI called £0.5m for a
number of follow on investments. Vaaka IV called £0.9m to primarily invest in
Finnish IT infrastructure provider Tietokeskus alongside a continuation
vehicle. We had existing exposure to this business through the commitment to
Vaaka II.
In Italy, Wisequity VI called £1.1m for Serbios a leading Italian biocontrols
company (providing biological alternatives to pesticides and agrochemicals).
This is the first acquisition within Greenexta, a newly established
buy-and-build platform for natural solutions for agriculture. Wisequity VI
also called £0.6m for Case Della Piada, a leading Italian producer of
flatbreads.
Inflexion Buyout Fund VI called £1.6m for two European investments. DSS+
(£0.8m) is a Swiss health and safety focussed management consultancy and
Nomentia (£0.7m) is a Finland-based cash and treasury management software
provider.
Hg Saturn 3 called £0.5m for GGW, a European insurance brokerage platform for
SMEs in Germany's Mittelstand.
Procuritas VII called £0.5m for Precision Biologic, a Canadian supplier of
high-quality reagents used for haemostasis (blood coagulation) diagnostics
serving a mainly North American customer base of over a thousand laboratories,
hospitals, universities and research centres.
Lastly in the USA MidOcean VI called £0.5m for MPearlRock (consumer products)
and Re-Sourcing (staffing and consulting for the finance, compliance and IT
sectors).
The total drawn for new investments by funds and co-investments in the first
half of 2024 was £35.9m.
Realisations
Despite the market slowing down considerably at the start of the year volumes
have picked up and there were a number of realisations and associated
distributions. These came from a wide range of sectors and geographies.
The largest realisation was the previously announced exit of large format pet
retailer Jollyes, which was sold by Kester Capital to TDR Capital with the
transaction completing in April. Initial proceeds were £18.6m with a further
£0.4m expected in final proceeds representing 4.2x cost and an IRR over the
six-year hold of 27%. The company doubled EBITDA to £11m and built its chain
from 64 stores to 100 during the hold. Kester is the latest example of an
emerging manager in the UK lower mid-market whom we have backed early to good
effect.
There was another substantial co-investment exit with the sale of
Aberdeen-based Coretrax to large listed energy services group Expro. This
investment in the wellbore plug and abandonment company was led by energy
specialists Buckthorn Partners. During the quarter £3.4m was received in
cash. Since the quarter end a further £10.3m has been received as Buckthorn
successfully sold down the shares which comprised the bulk of the
consideration. There remains around £0.5m of shares held in escrow; the
investment has achieved 1.8x cost and an IRR of 12%. Given the volatile
conditions in energy markets since the investment was made in 2018 this is a
fair outcome.
August Equity IV returned £3.5m through the sale of Agilio, the healthcare
compliance software company, achieving an exceptional return of 9.2x cost and
an IRR of 72%.
Graycliff IV returned £2.4m through the sale of EMC, a switches and
transformers manufacturer, achieving another exceptional outcome of 8.2x cost
and an IRR of 146%. This was a relatively short hold of only two and a half
years.
Summa I returned £1.7m through the sale of Pagero, a procure to pay software
as a service company, to Thomson Reuters. This represented 5.6x cost.
Montefiore IV returned £2.5m with the sale to a continuation vehicle of two
of its holdings; EDG (digital services for French companies) and Groupe
Premium (life and pension insurance broker).
Avallon MBO II Fund made a final distribution of £1.4m with the sale of ORE
(consulting and IT solutions for purchasing managers) and escrows from
Novotech (Polymer products).
In the UK Apiary exited TAG, the leading travel management company servicing
the global live music and entertainment touring industry. The investment was
made in 2018 and after a very promising start the business was rendered
temporarily loss-making as a result of a cessation of activity for nearly two
years due to COVID. The company has made a spectacular recovery as the
postponed shows returned and market share was captured from non-surviving
competitors giving a very strong bounce back. In the circumstances the £1.5m
returned which represents 4.0x cost and 29% IRR is highly creditable.
Inflexion Enterprise Fund IV sold ATG, a global automative data and software
company. The return was £0.9m which is a very impressive 6.7x cost and 40%
IRR over the five-year hold.
SEP V made a distribution of £0.6m which marked a further stage in the exit
of payroll software company Immedis which was agreed in Q3 2023. The return on
full exit will be 3.1x cost and 31% IRR.
Silverfleet European Development Fund returned, as a final distribution from
this fund, £0.9m from OneStock, a stock optimisation software company,
achieving 2.5x cost and 35% IRR.
In the Netherlands, Bencis V returned £1.1m with the sale of Tech Tribes, a
digital transformation consultancy making 7.2x cost and 34% IRR. This fund
also returned £0.9m from the sale of Netherlands-based Ceban Pharmaceuticals.
The business specialises in compounding drugs in different formats and owns a
major pharmacy chain Medsen. The return was 4.7x cost and 36% IRR. In Q1,
Bencis V returned £1.9m with the sale of Kooi, the mobile security systems
company. This also represented an exceptional return of 13.9x cost and 61%
IRR.
MED II, the ARCHIMED managed healthcare fund, returned £0.9m with the sale of
French company Clean Biologics which focuses on biosafety testing. This was
sold to a continuation vehicle for 5.0x cost.
As noted, Vaaka II exited Finnish IT infrastructure provider Tietokeskus to a
continuation vehicle returning £0.6m (2.8x, 17% IRR).
In Spain, Corpfin IV exited Dimoldura, the doors, mouldings and accessories
manufacturer to a strategic buyer returning £1.1m (2.5x cost, 17% IRR).
Additionally the fund returned £0.3m, consisting of dividends from Elastora
(£0.2m) and earn out payment from Grupo 5 (£0.2m).
Lastly there were some excellent realisations in the USA. Stellex Capital
achieved three exits in H1 collectively amounting to £1.3m all at excellent
multiples and IRRs. Fenix, a recycler and reseller of OEM automotive parts was
sold to a Stellex continuation vehicle; Officine Maccaferri, a sustainable
engineering solutions company was sold to Ambienta; and CGMH, a material
handling conveyor systems company, was sold to trade.
Graycliff has had two strong exits. Graycliff III sold sweeteners manufacturer
Ingredients Plus returning £2.1m (3.3x, 34% IRR). Graycliff IV exited safety
material handling equipment manufacturer Ballymore returning £1.0m (4.0x, 60%
IRR).
The total of realisations and associated income for the first half of 2024 is
£52.3m. This compares with £39.8m at this point last year and £61.8m for
the whole of 2023.
Valuation Changes
Whilst there have been many changes in valuation in the first half the net
effect is not large. It is worth remembering that mostly these are March
valuations used for June, with only around 15% of valuations being fully up to
date 30 June 2024 valuations.
The largest uplift was £4.1m for ATEC, the specialist insurer, which Kester
has agreed to sell to private equity house Perwyn. This transaction is agreed
and should go through in September once the necessary regulatory approval has
been received. The valuation is at the exit price and represents 5.0x cost.
Our co-investment in Denmark-based care company Habitus has been trading well
and is up by £2.6m. Other co-investments that have been trading well and are
uplifted significantly include CARDO Group (+£1.2m) and Utimaco (+£2.0m).
Our holding in Inflexion Strategic Partners is up by £1.4m reflecting
Inflexion's impressive growth in assets under management.
Amongst the funds there have been a number of upgrades based on the trading of
investee companies and, in some cases, good exits. These include Axiom I
(+£2.6m), Apposite III (+£1.2m), SEP V (+£0.8m) and Graycliff IV (+£0.8m).
There were a few significant downgrades. Magnesium I was down by £1.6m as a
result of the fund growing substantially and our initial gain on the original
positions being diluted by the incoming money.
Our investment in Horizon-managed Agilico has been written down. Agilico was
originally a managed print services ('MPS') company before also integrating
workflow services software into its offering. As Horizon, the lead manager,
review exit opportunities they have reduced the valuation by £1.3m to reflect
more realistic expectations. Our co-investment in Omlet, online provider of
premium pet products, has experienced tough trading and is down by £1.2m.
Leader, the electric bike company in Bulgaria, continues to work through a
serious destocking phase which is affecting the whole industry and is down by
£0.9m. Rosa Mexicano, the Mexican restaurant chain was down by £1.4m with
weaker trading necessitating a refinancing, which has now been completed. Tier
I CRM (now known as Alessa), the provider of cloud-based software for KYC and
AML compliance, has struggled with a substantial change in business model and
market conditions since we invested and is down by £1.3m.
Financing
The Company's debt has reduced slightly during the quarter. Net debt at
£91.3m is at a perfectly manageable level. Looking towards the year end we
should be able to reduce debt noticeably as expected, but not yet received,
receipts alone would amount to circa £17m whilst other realisations are
likely.
As noted above in April, the Company bought back 1.25m shares at 460p per
share which amounted to 1.7% of the issued share capital, excluding shares
held in treasury, at a cost of £5.8m. The estimated enhancement for
continuing shareholders is £2.8m or 0.6% of NAV. The Company continues to
appraise the relative merits of using capital for share buy-backs versus new
investment whilst protecting and growing the dividend.
Outlook
The private equity market in most of our significant markets is showing signs
of improvement. This is clearly the case in the UK where this has been
underlined by our recent significant exits which have been completed at or
above target valuations and within the expected timescales. Some of the
Northern European geographies, such as Germany and the Nordics, are more
cautious, but parts of Southern Europe are more overtly optimistic. For the
last eighteen months the private equity market has been adjusting to a
different economic environment with higher prevailing interest rates. This has
resulted in a slowdown in M&A activity with some connected pricing and
valuation multiple adjustments. The fundamentals of most of our investee
companies have continued to make progress with revenue and profits growth
continuing. As the underlying growth of the companies offsets the adjustment
in valuation multiples, overall asset values will once again move back towards
the longer term positive trend. A key determinant in this will be business
confidence which is difficult to measure in real time and is susceptible to
external global events. Despite this, from our recent discussions with our
investment partners, we can identify an improving trend and we expect that
this will, in due course, lead to further good growth in shareholder value in
the remainder of 2024 and beyond.
Hamish Mair
Investment Manager
Columbia Threadneedle Investment Business Limited
Portfolio Summary
Portfolio Distribution at 30 June 2024 % of Total % of Total
30 June 2024 31 December 2023
Buyout Funds - Pan European* 10.4 10.5
Buyout Funds - UK 18.0 16.2
Buyout Funds - Continental Europe† 16.9 18.2
Secondary Funds 0.1 0.1
Private Equity Funds - USA 4.2 5.0
Private Equity Funds - Global 2.0 1.7
Venture Capital Funds 4.3 3.7
Direct Investments/Co-investments 44.1 44.6
100.0 100.0
* Europe including the UK.
† Europe excluding the UK.
Ten Largest Holdings Total Valuation £'000 % of Total Portfolio
As at 30 June 2024
Inflexion Strategic Partners 16,342 2.7
Sigma 15,893 2.7
ATEC (CETA) * 14,619 2.5
Aliante Equity 3 11,477 1.9
August Equity Partners V 11,112 1.9
TWMA 11,008 1.8
Coretrax * 10,800 1.8
Axiom 1 10,594 1.8
San Siro 10,307 1.7
Aurora Payment Solutions 9,806 1.6
121,958 20.4
*Realised following the period end
Portfolio Holdings
Investment Geographic Focus Total % of Total Portfolio
Valuation
£'000
Buyout Funds - Pan European
Stirling Square Capital II Europe 9,157 1.5
Apposite Healthcare III Europe 9,038 1.5
Apposite Healthcare II Europe 8,754 1.5
F&C European Capital Partners Europe 8,722 1.5
MED II Western Europe 3,650 0.6
Agilitas 2015 Fund Northern Europe 3,077 0.5
Astorg VI Western Europe 3,032 0.5
Magnesium Capital 1 Europe 2,482 0.4
Verdane XI Northern Europe 1,700 0.3
Wisequity VI Italy 1,678 0.3
Volpi III Northern Europe 1,666 0.3
Summa III Northern Europe 1,417 0.2
TDR Capital II Western Europe 1,351 0.2
Agilitas 2020 Fund Europe 1,210 0.2
TDR II Annex Fund Western Europe 1,153 0.2
ARCHIMED MED III Global 1,105 0.2
MED Platform II Global 1,010 0.2
KKA II Europe 905 0.2
Verdane Edda III Northern Europe 583 0.1
Agilitas 2024 HIF Europe 239 -
Volpi Capital Northern Europe 39 -
Inflexion Partnership III Europe 36 -
MED Rise Global 20 -
Total Buyout Funds - Pan European 62,024 10.4
Buyout Funds - UK
Inflexion Strategic Partners United Kingdom 16,342 2.7
August Equity Partners V United Kingdom 11,112 1.9
Axiom 1 United Kingdom 10,594 1.8
Inflexion Supplemental V United Kingdom 8,129 1.4
Inflexion Buyout Fund V United Kingdom 6,000 1.0
Apiary Capital Partners I United Kingdom 4,859 0.8
August Equity Partners IV United Kingdom 4,522 0.8
Inflexion Buyout Fund VI United Kingdom 4,093 0.7
Kester Capital II United Kingdom 4,019 0.7
Piper Private Equity VI United Kingdom 3,827 0.6
FPE Fund III United Kingdom 3,751 0.6
FPE Fund II United Kingdom 3,634 0.6
Inflexion Partnership Capital II United Kingdom 3,615 0.6
Inflexion Enterprise Fund V United Kingdom 3,358 0.6
Inflexion Enterprise Fund IV United Kingdom 2,889 0.5
Corran Environmental II United Kingdom 2,773 0.5
Inflexion Buyout Fund IV United Kingdom 2,688 0.4
Piper Private Equity VII United Kingdom 2,215 0.4
Inflexion Supplemental IV United Kingdom 1,499 0.2
GCP Europe II United Kingdom 1,344 0.2
RJD Private Equity Fund III United Kingdom 1,185 0.2
Inflexion Partnership Capital I United Kingdom 1,104 0.2
Horizon Capital 2013 United Kingdom 1,067 0.2
Kester Capital III United Kingdom 969 0.2
Primary Capital IV United Kingdom 929 0.2
August Equity Partners VI United Kingdom 300 -
Piper Private Equity V United Kingdom 221 -
Dunedin Buyout Fund II United Kingdom 13 -
Total Buyout Funds - UK 107,051 18.0
Investment Geographic Focus Total % of Total Portfolio
Valuation £'000
Buyout Funds - Continental Europe
Aliante Equity 3 Italy 11,477 1.9
Bencis V Benelux 6,998 1.2
Avallon MBO Fund III Poland 5,768 1.0
DBAG VII DACH 5,748 1.0
DBAG VIII DACH 5,478 0.9
Vaaka III Finland 5,196 0.9
Capvis III CV DACH 5,021 0.9
Summa II Nordic 4,920 0.8
Chequers Capital XVII France 4,846 0.8
Verdane Edda Nordic 4,211 0.7
Montefiore V France 4,174 0.7
Procuritas VI Nordic 3,837 0.7
ARX CEE IV Eastern Europe 3,166 0.5
Corpfin V Spain 2,911 0.5
Procuritas Capital IV Nordic 2,597 0.4
Procuritas VII Nordic 2,592 0.4
Italian Portfolio Italy 2,444 0.4
NEM Imprese III Italy 2,337 0.4
Vaaka IV Finland 2,059 0.4
Capvis IV DACH 2,050 0.3
Montefiore IV France 1,954 0.3
Aurica IV Spain 1,543 0.3
Corpfin Capital Fund IV Spain 1,488 0.3
Summa I Nordic 1,393 0.2
Portobello Fund III Spain 1,208 0.2
DBAG VIIB DACH 1,085 0.2
DBAG VIIIB DACH 765 0.1
Vaaka II Finland 763 0.1
DBAG Fund VI DACH 739 0.1
Chequers Capital XVI France 688 0.1
PineBridge New Europe II Eastern Europe 498 0.1
Ciclad 5 France 305 0.1
Procuritas Capital V Nordic 231 -
Montefiore Expansion France 92 -
Gilde Buyout Fund III Benelux 91 -
N+1 Private Equity Fund II Iberia 89 -
Capvis III DACH 51 -
DBAG Fund V DACH 5 -
Herkules Private Equity III Nordic 4 -
Total Buyout Funds - Continental Europe 100,822 16.9
Private Equity Funds - USA
Blue Point Capital IV North America 7,845 1.3
Camden Partners IV United States 3,197 0.5
Graycliff IV North America 2,556 0.5
Level 5 Fund II United States 2,474 0.5
Purpose Brands (Level 5) United States 2,395 0.4
Blue Point Capital III North America 1,981 0.3
MidOcean VI United States 1,680 0.3
Stellex Capital Partners North America 1,675 0.3
Graycliff III United States 747 0.1
Blue Point Capital II North America 151 -
HealthpointCapital Partners III United States 32 -
Total Private Equity Funds - USA 24,733 4.2
Investment Geographic Total % of
Focus Valuation Total
£'000 Portfolio
Private Equity Funds - Global
Corsair VI Global 7,077 1.2
Hg Saturn 3 Global 3,226 0.5
PineBridge GEM II Global 675 0.1
F&C Climate Opportunity Partners Global 536 0.1
Hg Mercury 4 Global 354 0.1
AIF Capital Asia III Asia 102 -
PineBridge Latin America II South America 58 -
Warburg Pincus IX Global 9 -
Total Private Equity Funds - Global 12,037 2.0
Venture Capital Funds
SEP V United Kingdom 9,687 1.6
MVM V Global 4,045 0.7
SEP VI Europe 2,973 0.5
Kurma Biofund II Europe 2,839 0.5
MVM VI Global 2,224 0.4
Northern Gritstone United Kingdom 1,750 0.3
SEP IV United Kingdom 1,083 0.2
Pentech Fund II United Kingdom 385 0.1
SEP II United Kingdom 273 -
Life Sciences Partners III Western Europe 252 -
Environmental Technologies Fund Europe 56 -
SEP III United Kingdom 36 -
Total Venture Capital Funds 25,603 4.3
Secondary Funds
The Aurora Fund Europe 585 0.1
Total Secondary Funds 585 0.1
Direct Investments/Co-investments
Sigma United States 15,893 2.7
ATEC United Kingdom 14,619 2.5
TWMA United Kingdom 11,008 1.8
Coretrax United Kingdom 10,800 1.8
San Siro Italy 10,307 1.7
Aurora Payment Solutions United States 9,806 1.6
Weird Fish United Kingdom 9,534 1.6
Breeze Group (CAS) United Kingdom 9,273 1.6
Cyclomedia Netherlands 9,064 1.5
Utimaco DACH 9,003 1.5
Cyberhawk United Kingdom 8,500 1.4
Amethyst Radiotherapy Europe 7,970 1.3
Velos IoT (JT IoT) United Kingdom 6,893 1.2
Asbury Carbons North America 6,783 1.1
Habitus Denmark 6,679 1.1
Prollenium North America 6,291 1.1
CARDO Group United Kingdom 6,130 1.0
Family First United Kingdom 6,000 1.0
Swanton United Kingdom 5,968 1.0
Rosa Mexicano United States 5,822 1.0
Orbis United Kingdom 5,693 1.0
Cybit (Perfect Image) United Kingdom 5,176 0.9
AccuVein United States 4,917 0.8
StarTraq United Kingdom 4,808 0.8
123Dentist Canada 4,748 0.8
Braincube France 4,523 0.8
MedSpa Partners Canada 4,420 0.7
Dotmatics United Kingdom 4,199 0.7
LeadVenture United States 4,177 0.7
1Med Switzerland 4,009 0.7
Walkers Transport United Kingdom 3,316 0.6
Educa Edtech Spain 3,114 0.5
PathFactory Canada 3,000 0.5
Omlet United Kingdom 2,832 0.5
Vero Biotech United States 2,721 0.5
Collingwood Insurance Group United Kingdom 2,671 0.5
AccountsIQ United Kingdom 2,552 0.4
Agilico (DMC Canotec) United Kingdom 2,462 0.4
GT Medical United States 2,373 0.4
Neurolens United States 2,236 0.4
Leader96 Bulgaria 2,130 0.4
Alessa (Tier1 CRM) Canada 2,068 0.3
OneTouch United Kingdom 1,857 0.3
Bomaki Italy 1,494 0.3
Rephine United Kingdom 1,362 0.2
Avalon United Kingdom 1,234 0.2
Ambio Holdings United States 1,132 0.2
Jollyes United Kingdom 397 0.1
TDR Algeco/Scotsman Europe 286 -
Total Direct Investments/Co-investments 262,250 44.1
Total Portfolio 595,105 100.0
CT Private Equity Trust PLC
Statement of Comprehensive Income for the
half year ended 30 June 2024
Unaudited
Revenue Capital Total
£'000 £'000 £'000
Income
Gains on investments held at fair value - 4,240 4,240
Exchange gains - 2,480 2,480
Investment income 1,665 - 1,665
Other income 468 - 468
Total income 2,133 6,720 8,853
Expenditure
Investment management fee - basic fee (245) (2,202) (2,447)
Investment management fee - performance fee - - -
Other expenses (593) - (593)
Total expenditure (838) (2,202) (3,040)
Profit before finance costs and taxation 1,295 4,518 5,813
Finance costs (456) (4,108) (4,564)
Profit before taxation 839 410 1,249
Taxation - - -
Profit for period/total comprehensive income 839 410 1,249
Return per Ordinary Share 1.16p 0.57p 1.73p
The total column is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing
operations.
CT Private Equity Trust PLC
Statement of Comprehensive Income for the
half year ended 30 June 2023
Unaudited
Revenue Capital Total
£'000 £'000 £'000
Income
Losses on investments held at fair value - (10,390) (10,390)
Exchange gains - 1,643 1,643
Investment income 1,167 - 1,167
Other income 389 - 389
Total income 1,556 (8,747) (7,191)
Expenditure
Investment management fee - basic fee (234) (2,110) (2,344)
Investment management fee - performance fee - - -
Other expenses (563) - (563)
Total expenditure (797) (2,110) (2,907)
Profit/(loss) before finance costs and taxation 759 (10,857) (10,098)
Finance costs (192) (1,722) (1,914)
Profit/(loss) before taxation 567 (12,579) (12,012)
Taxation - - -
Profit/(loss) for period/total comprehensive income 567 (12,579) (12,012)
Return per Ordinary Share 0.78p (17.27)p (16.49)p
The total column is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing
operations.
CT Private Equity Trust PLC
Statement of Comprehensive Income for the
year ended 31 December 2023
Audited
Revenue Capital Total
£'000 £'000 £'000
Income
Gains on investments held at fair value - 25,226 25,226
Exchange gains - 863 863
Investment income 2,703 - 2,703
Other income 689 - 689
Total income 3,392 26,089 29,481
Expenditure
Investment management fee - basic fee (474) (4,263) (4,737)
Investment management fee - performance fee - (4,767) (4,767)
Other expenses (1,064) - (1,064)
Total expenditure (1,538) (9,030) (10,568)
Profit before finance costs and taxation 1,854 17,059 18,913
Finance costs (513) (4,616) (5,129)
Profit before taxation 1,341 12,443 13,784
Taxation - - -
Profit for year/total comprehensive income 1,341 12,443 13,784
Return per Ordinary Share 1.84p 17.08p 18.92p
The total column is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing
operations.
CT Private Equity Trust PLC
Amounts Recognised as Dividends
Six months ended 30 June 2024 (unaudited) Six months ended 30 June 2023 (unaudited)
£'000 £'000 Year ended 31 December 2023
(audited)
£'000
Quarterly Ordinary Share dividend of 6.62p per share for the quarter ended 30 - 4,822 4,822
September 2022
Quarterly Ordinary Share dividend of 6.79p per share for the quarter ended 31 - 4,946 4,946
December 2022
Quarterly Ordinary Share dividend of 7.01p per share for the quarter ended 31 - - 5,063
March 2023
Quarterly Ordinary Share dividend of 7.01p per share for the quarter ended 30 - - 5,106
June 2023
Quarterly Ordinary Share dividend of 7.01p per share for the quarter ended 30 5,100 - -
September 2023
Quarterly Ordinary Share dividend of 7.01p per share for the quarter ended 31 5,030 - -
December 2023
10,130 9,768 19,937
CT Private Equity Trust PLC
Balance Sheet
As at 30 June 2024 As at 30 June 2023 As at 31 December 2023
(unaudited) (unaudited)
(audited)
£'000 £'000 £'000
Non-current assets
Investments at fair value through profit or loss 595,105 554,164 605,603
Current assets
Other receivables 1,044 704 841
Cash and cash equivalents 22,086 13,343 9,879
23,130 14,047 10,720
Current liabilities
Other payables (8,420) (3,782) (8,121)
Interest-bearing bank loan (63,801) (68,534) (97,109)
(72,221) (72,316) (105,230)
Net current liabilities (49,091) (58,269) (94,510)
Non-current liabilities
Interest-bearing bank loan (49,581) - -
Net assets 496,433 495,895 511,093
Equity
Called-up ordinary share capital 739 739 739
Share premium account 2,527 2,527 2,527
Special distributable capital reserve 3,818 10,026 9,597
Special distributable revenue reserve 31,403 31,403 31,403
Capital redemption reserve 1,335 1,335 1,335
Capital reserve 456,611 449,865 465,492
Shareholders' funds 496,433 495,895 511,093
Net asset value per Ordinary Share 694.28p 680.75p 702.50p
CT Private Equity Trust PLC
Statement of Changes in Equity
Special Distributable Capital Reserve Special Distributable Revenue Reserve
Share Premium Account Capital Redemption Reserve
Share Capital Capital Reserve Revenue Reserve
Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
For the six months ended 30 June 2024 (unaudited)
Net assets at 1 January 2024 739 2,527 9,597 31,403 1,335 465,492 - 511,093
Buyback of ordinary shares - - (5,779) - - - - (5,779)
Profit for the period/total comprehensive income
- - - -
839
- 410 1,249
Dividends paid - - - - - (9,291) (839) (10,130)
Net assets at 30 June 2024 739 2,527 3,818 31,403 1,335 456,611 - 496,433
For the six months ended 30 June 2023 (unaudited)
Net assets at 1 January 2023 739 2,527 10,026 31,403 1,335 471,645 - 517,675
Buyback of ordinary shares - - - - - - - -
(Loss)/profit for the period/total comprehensive income
- - - -
567
- (12,579) (12,012)
Dividends paid - - - - - (9,201) (567) (9,768)
Net assets at 30 June 2023 739 2,527 10,026 31,403 1,335 449,865 - 495,895
For the year ended 31 December 2023 (audited)
Net assets at 1 January 2023 739 2,527 10,026 31,403 1,335 471,645 - 517,675
Buyback of ordinary shares - - (429) - - - - (429)
Profit for the period/total comprehensive income
- - - -
-
12,443 1,341
13,784
Dividends paid - - - - - (18,596) (1,341) (19,937)
Net assets at 31 December 2023 739 2,527 9,597 31,403 1,335 465,492 - 511,093
CT Private Equity Trust PLC
Cash Flow Statement
Six months ended Six months ended Year ended
30 June 2024 30 June 2023 31 December 2023
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Profit/(loss) before taxation 1,249 (12,012) 13,784
Adjustments for:
Gain on disposals of investments (25,940) (21,084) (26,349)
Loss on amount of fair value movement 21,700 31,474 1,123
Exchange differences (2,480) (1,643) (863)
Interest Income (468) (389) (689)
Income received 429 389 668
Finance costs 4,564 1,914 5,129
Increase in other receivables (19) (4) (8)
Decrease in other payables (100) (4,253) (497)
Net cash outflow from operating activities (1,065) (5,608) (7,702)
Investing activities
Purchases of investments (35,913) (74,468) (110,784)
Sales of investments 50,651 38,471 58,964
Net cash inflow/(outflow) from investing activities 14,738 (35,997) (51,820)
Financing activities
Drawdown of bank loans, net of costs 19,986 31,437 59,023
Arrangement cost of loan facility (1,468) (28) (27)
Interest paid (3,975) (1,426) (3,995)
Buyback of ordinary shares (5,779) - (429)
Equity dividends paid (10,130) (9,768) (19,937)
(1,366) 20,215
Net cash (outflow)/inflow from financing activities 34,635
Net increase/ (decrease) in cash and cash equivalents 12,307 (21,390) (24,887)
Currency (losses)/gains (100) 273 306
Net increase/(decrease) in cash and cash equivalents 12,207 (21,117) (24,581)
Opening cash and cash equivalents 9,879 34,460 34,460
Closing cash and cash equivalents 22,086 13,343 9,879
Directors' Statement of Principal Risks and Uncertainties
The principal risks identified in the Annual Report and Accounts for the year
ended 31 December 2023 were:
• Economic, macro and political;
• Liquidity and capital structure;
• Regulatory;
• Personnel issues;
• Fraud and cyber;
• Market;
• ESG; and
• Operational.
These risks are described in more detail under the heading "Principal Risks"
within the Strategic Report in the Company's Annual Report and Accounts for
the year ended 31 December 2023.
At present the global economy continues to suffer considerable disruption due
to the war in Ukraine, events in the Middle East, disputes in the South China
Sea and the after effects of a high inflation environment. The Directors
continue to review the key risk matrix for the Company which identifies the
risks that the Company is exposed to, the controls in place and the actions
being taken to mitigate them.
It is also noted that:
· An analysis of the performance of the Company since 1 January 2024 is
included within the Chairman's Statement and the Manager's Review.
· The Company's borrowing facility is composed of a €60 million term
loan and a £95 million multi-currency revolving credit facility. As at 30
June 2024 borrowings were £113.4 million. The interest rate payable is
variable.
· Note 9 details the Board's consideration for the continued
applicability of the principle of Going Concern when preparing this report.
On behalf of the Board
Richard Gray
Chairman
Statement of Directors' Responsibilities in Respect of the Interim Report
We confirm that to the best of our knowledge:
• the condensed set of financial statements have been prepared in accordance
with applicable UK-adopted International Accounting Standards on a going
concern basis and give a true and fair view of the assets, liabilities,
financial position and return of the Company;
• the Chairman's Statement, Manager's Review and the Directors' Statement of
Principal Risks and Uncertainties (together constituting the Interim
Management Report) include a fair review of the information required by the
Disclosure Guidance and Transparency Rule ('DTR') 4.2.7R, being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the financial statements;
• the Directors' Statement of Principal Risks and Uncertainties is a fair
review of the principal risks and uncertainties for the remainder of the
financial year; and
• the half-yearly report includes a fair review of the information required
by DTR 4.2.8R, being related party transactions that have taken place in the
first six months of the current financial year and that have materially
affected the financial position or performance of the Company during the
period, and any changes in the related party transactions described in the
last Annual Report that could do so.
On behalf of the Board
Richard Gray
Chairman
Notes (unaudited)
1. The condensed company financial statements have been prepared on a
going concern basis in accordance with International Financial Reporting
Standard ('IFRS') IAS 34 'Interim Financial Reporting' and the accounting
policies set out in the statutory accounts for the year ended 31 December
2023. The condensed financial statements do not include all of the information
and disclosures required for a complete set of IFRS financial statements and
should be read in conjunction with the financial statements for the year ended
31 December 2023, which were prepared in accordance with the Companies Act
2006 and UK adopted international accounting standards.
2. Earnings for the six months to 30 June 2024 should not be taken as a
guide to the results for the year to 31 December 2024.
3. Investment management fee:
Six months to Six months to Year ended
30 June 2024 30 June 2022 31 December 2023
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment management fee - basic fee 245 2,202 2,447 234 2,110 2,344 474 4,263 4,737
Investment management fee - performance fee - - - - - - - 4,767 4,767
245 2,202 2,447 234 2,110 2,344 474 9,030 9,504
4. Finance costs:
Six months to Six months to Year ended
30 June 2024 30 June 2023 31 December 2023
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Interest payable on bank loans 456 4,108 4,564 192 1,722 1,914 513 4,616 5,129
5. The return per Ordinary Share is based on a net profit on ordinary
activities after taxation of £1,249,000 (30 June 2023 - loss £12,012,000; 31
December 2023 - profit £13,784,000) and on 72,193,155 (30 June
2023-72,844,938; 31 December 2023 -72,838,637) shares, being the weighted
average number of Ordinary Shares in issue during the period.
6. The net asset value per Ordinary Share is based on net assets at the
period end of £496,433,000 (30 June 2023 - £495,895,000; 31 December 2023 -
£511,093,000) and on 71,502,938 (30 June 2023 - 72,844,938; 31 December 2023
- 72,752,938 shares, being the number of Ordinary Shares in issue at the
period end.
7. The fair value measurements for financial assets are categorised into
different levels in the fair value hierarchy based on inputs to valuation
techniques used. The different levels are defined as follows:
Level 1 reflects financial instruments quoted in an active market.
Level 2 reflects financial instruments whose fair value is evidenced by
comparison with other observable current market transactions in the same
instrument or based on a valuation technique whose variables includes only
data from observable markets.
Level 3 reflects financial instruments whose fair value is determined in whole
or in part using a valuation technique based on assumptions that are not
supported by prices from observable market transactions in the same instrument
and not based on available observable market data.
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
30 June 2024
Financial assets
Investments - - 595,105 595,105
30 June 2023
Financial assets
Investments 5,185 - 548,979 554,164
31 December 2023
Financial assets
Investments - - 605,603 605,603
There were no transfers between levels in the fair value hierarchy in the
period ended 30 June 2024. Transfers between levels of the fair value
hierarchy are deemed to have occurred at the date of the event that caused the
transfer.
Valuation techniques
Quoted fixed asset investments held are valued at bid prices which equate to
their fair values. When fair values of publicly traded equities are based on
quoted market prices in an active market without any adjustments, the
investments are included within Level 1 of the hierarchy. The Company
invests primarily in private equity funds and co-investments via limited
partnerships or similar fund structures. Such vehicles are mostly unquoted
and in turn invest in unquoted securities. The fair value of a holding is
based on the Company's share of the total net asset value of the fund or share
of the valuation of the co-investment calculated by the lead private equity
manager on a quarterly basis. The lead private equity manager derives the net
asset value of a fund from the fair value of underlying investments. The fair
value of these underlying investments and the Company's co-investments is
calculated using methodology which is consistent with the International
Private Equity and Venture Capital Valuation Guidelines ('IPEG'). In
accordance with IPEG these investments are generally valued using an
appropriate multiple of maintainable earnings, which has been derived from
comparable multiples of quoted companies or recent transactions. The Columbia
Threadneedle private equity team has access to the underlying valuations used
by the lead private equity managers including multiples and any adjustments.
The Columbia Threadneedle private equity team generally values the Company's
holdings in line with the lead managers but may make adjustments where they do
not believe the underlying managers' valuations represent fair value. On a
quarterly basis, the Columbia Threadneedle private equity team present the
valuations to the Board. This includes a discussion of the major assumptions
used in the valuations, which focuses on significant investments and
significant changes in the fair value of investments. If considered
appropriate, the Board will approve the valuations.
The fair values of all of the Company's other financial assets and liabilities
are not materially different from their carrying values in the balance sheet.
Significant unobservable inputs for Level 3 valuations
The Company's unlisted investments are all classified as Level 3 investments.
The fair values of the unlisted investments have been determined principally
by reference to earnings multiples, with adjustments made as appropriate to
reflect matters such as the sizes of the holdings and liquidity. The weighted
average earnings multiple for the portfolio as at 30 June 2024 was 11.0 times
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation).
The significant unobservable input used in the fair value measurement
categorised within Level 3 of the fair value hierarchy together with a
quantitative sensitivity analysis are shown below:
Period ended Input Sensitivity used* Effect on fair value £'000
30 June 2024 Weighted average earnings multiple 1x 73,732
30 June 2023 Weighted average earnings multiple 1x 64,954
31 December 2023 Weighted average earnings multiple 1x 76,444
* The sensitivity analysis refers to an amount added or deducted from the
input and the effect this has on the fair value.
The fair value of the Company's unlisted investments is sensitive to changes
in the assumed earnings multiples. The managers of the underlying funds assume
an earnings multiple for each holding. An increase in the weighted average
earnings multiple would lead to an increase in the fair value of the
investment portfolio and a decrease in the multiple would lead to a decrease
in the fair value.
The following table shows a reconciliation of all movements in the fair value
of financial instruments categorised within Level 3 between the beginning and
the end of the period:
30 June 2024 30 June 2023 31 December 2023
£'000 £'000 £'000
Balance at beginning of period 605,603 523,080 523,080
Purchases 35,913 74,468 110,784
Sales (50,651) (37,140) (52,142)
Gains on disposal 25,940 19,753 19,527
Holding losses/gains (21,700) (31,182) 4,354
Balance at end of period 595,105 548,979 605,603
8. Share Capital:
Total Issued Held in Treasury Total issued excluding shares held in treasury
£'000 Number £'000 Number £'000 Number
Balance at 1 January 2024 739 73,941,429 12 1,188,491 727 72,752,938
Ordinary shares brought back and held in treasury - - 12 1,250,000 (12) (1,250,000)
Balance at 30 June 2024 739 73,941,429 24 2,438,491 715 71,502,938
During the six months to 30 June 2024, the Company issued nil
Ordinary Shares. During the six months to 30 June 2024, the Company bought
back 1,250,000 of its ordinary shares at an average price of 460 pence per
share to be held in treasury.
9. In assessing the going concern basis of accounting the Directors have
had regard to the guidance issued by the Financial Reporting Council. They
have considered the current cash position of the Company, the availability of
the Company's loan facility and compliance with its banking covenants. They
have also considered period end cash balances and forecast cashflows, the
operational resilience of the Company and its service providers and the annual
dividend.
As at 30 June 2024, the Company had outstanding undrawn commitments of £206.9
million. Of this amount, approximately £25.7 million is to funds where the
investment period has expired and the Manager would expect very little of this
to be drawn. Of the outstanding undrawn commitments remaining within their
investment periods, the Manager would expect that a significant amount will
not be drawn before these periods expire. The Company has a committed
borrowing facility comprising a term loan of €60 million and a revolving
credit facility of £95 million. This facility is due to expire in February
2027.
At 30 June 2024 the Company had fully drawn the term loan of €60 million and
had drawn £63.8 million of the revolving credit facility, leaving £31.2
million of the revolving credit facility available. This available proportion
of the facility can be used to fund any shortfall between the proceeds
received from realisations and drawdowns made from funds in the Company's
portfolio or funds required for co-investments. Under normal circumstances
this amount of 'headroom' in the facility would be more than adequate to meet
any such shortfall.
At present the global economy continues to suffer disruption due to the war in
Ukraine, events in the Middle East, disputes in the South China Sea and the
after effects of a high inflation environment and the Directors have given
serious consideration to the consequences of these for the private equity
market in general and for the cashflows and asset values of the Company
specifically over the next twelve months. The Company has a number of loan
covenants and at present the Company's financial situation does not suggest
that any of these covenants are close to being breached.
Furthermore, the Directors have considered in detail a number of remedial
measures that are open to the Company which it may take if such a covenant
breach appears possible. These include reducing commitments and raising cash
through engaging with the private equity secondaries market. The Managers have
considerable experience in the private equity secondaries market through the
activities of the Company and through the management of other private equity
funds. The Directors have considered other actions which the Company may take
in the event that a covenant breach was imminent including taking measures to
increase the Company's asset base through an issuance of equity either for
cash or pursuant to the acquisition of other private equity assets.
The Directors have also considered the likelihood of the Company making
alternative banking arrangements with its current lenders or another lender.
Having considered the likelihood of the events which could cause a covenant
breach and the remedies available to the Company, the Directors are of the
view that the Company is well placed to manage such an eventuality
satisfactorily.
Based on this information the Directors believe that the Company has the
ability to meet its financial obligations as they fall due for a period of at
least twelve months from the date of approval of these financial statements.
Accordingly, these financial statements have been prepared on a going concern
basis.
10. These are not statutory accounts in terms of Section 434 of the
Companies Act 2006 and have not been audited or reviewed by the Company's
auditors. The information for the year ended 31 December 2023 has been
extracted from the latest published financial statements which received an
unqualified audit report and have been filed with the Registrar of Companies.
No statutory accounts in respect of any period after 31 December 2023 have
been reported on by the Company's auditors or delivered to the Registrar of
Companies. The Half-Year Report will be available shortly at the Company's
website address, www.ctprivateequitytrust.com.
For more information, please contact:
Hamish Mair (Fund Manager) 0131 718 1184
hamish.mair@columbiathreadneedle.com
(mailto:hamish.mair@columbiathreadneedle.com)
Scott McEllen (Company Secretary) 0131 718 1137
scott.mcellen@columbiathreadneedle.com
(mailto:scott.mcellen@columbiathreadneedle.com)
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