REG - CT Private Eq Trust - Preliminary Annual Results and Quarterly Dividend
28/03/2023 07:00
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RNS Number : 3755U CT Private Equity Trust PLC 28 March 2023
To: Stock Exchange
Date: 28 March 2023
CT Private Equity Trust PLC
LEI: 2138009FW98WZFCGRN66
Preliminary Announcement for the Year Ended 31 December 2022
CT Private Equity Trust PLC today announces its unaudited financial results
for the year ended 31 December 2022.
Financial Highlights
· NAV of 710.65 pence per Ordinary Share reflecting a total return
for the year of 14.8 per cent.*
· Share price total return for the year of -8.9 per cent for the Ordinary Shares.*
· Total quarterly dividends of 25.77 pence per Ordinary Share.
Quarterly dividend of 6.79p per Ordinary Share to be paid on 28 April 2023
· Dividend yield of 6.1 per cent based on the year-end share
price.*
*see Alternative Performance Measures
Chairman's Statement
Fellow Shareholders,
This report is for the year ended 31 December 2022. During this period your
Company has achieved a net asset value ("NAV") total return of 14.8 per cent.
This compares to a total return from the FTSE All-Share Index for 2022 of 0.4
per cent. The NAV per share at the year-end was 710.65p (2021: 640.30p).
The share price at the year-end was 423.00p per share (2021: 489.00p).
During the year the share price discount widened. As at 31 December 2022 it
was 40.5 per cent in comparison to 23.6 per cent as at 31 December 2021. As a
consequence, the share price total return for the year was -8.9%.
During the year the Company made new investments, either through funds or as
co-investments, totalling £88.7 million. Realisations and associated income
totalled £125.1 million. Outstanding undrawn commitments at the year-end were
£178.9 million of which £25.8 million was to funds where the investment
period had expired.
Approximately 85% of the valuation by value is based on 31 December 2022
valuations and 15% on September 2022 valuations.
The Company's performance fee arrangements contain a hurdle rate, calculated
over rolling three-year periods, of an IRR of 8.0 per cent per annum. The
annual IRR of the NAV for the three-year period ended 31 December 2022 was
24.6 per cent and, consequently, a capped performance fee of £5.4 million is
payable to the Manager, in respect of 2022. This is the tenth consecutive year
that a performance fee has been payable, demonstrating consistent performance
and providing Shareholders with an attractive total return, which includes
capital growth and an above average dividend yield.
Dividends
Since 2012 your Company has paid a substantial dividend from realised profits
allowing Shareholders to participate, to some degree, directly in the proceeds
of the steady stream of private equity realisations which the Company
achieves. This policy has been well received by Shareholders and provides for
a steadily growing dividend with downside protection. Your Board is fully
committed to maintaining this general approach for the foreseeable future.
The Company's quarterly dividends are payable in respect of the quarters ended
31 March, 30 June, 30 September and 31 December and are paid in the following
July, October, January and April respectively. As Shareholders do not have an
opportunity to approve a final dividend at each Annual General Meeting,
Shareholders are asked to approve the Company's dividend policy at the
forthcoming Annual General Meeting.
In accordance with the Company's stated dividend policy, the Board recommends
a further quarterly dividend of 6.79p per Ordinary Share, payable on 28 April
2023 to Shareholders on the register on 11 April 2023 and an ex-dividend date
of 6 April 2023. Total dividends paid for the year therefore amount to 25.77p
per Ordinary Share equivalent to a dividend yield of 6.1 per cent at the
year-end.
Share Buybacks
At the Annual General Meeting ("AGM") held on 26 May 2022, the Board sought
and received from Shareholders the authority to buyback up to 14.99% of the
Company's share capital. Buybacks can only be made at a cost which is below
the prevailing net asset value and, in the opinion of Directors, would be in
the interests of Shareholders as a whole.
During June 2022 the Company bought back 1,096,491 of its ordinary shares to
be held in treasury. The average discount at which these shares were bought
back was 28%.
These shares are held in treasury to allow the Company to re-issue them
quickly and cost effectively. At last year's AGM the Board sought and received
the authority from Shareholders to re-issue treasury shares or issue new
shares, subject to limitations on the number and price. Treasury shares can
only be re-issued and new shares issued at a price which would not dilute the
NAV of existing Shareholders.
The Board seeks renewal of these buyback and reissuance authorities at the AGM
to be held on 23 May 2023.
Change in Investment Limit for Co-investments
At present, the Company has a portfolio which is a mix of fund positions and
direct private equity investments or co-investments. The Board believes that
this mixed approach serves Shareholders well by capturing the best of private
equity at moderate levels of risk. Under the Company's investment policy,
co-investments are limited to no more than 50 per cent of its total assets at
the time of investment.
The Company's record in co-investments is good, with 80 co-investments
completed since 2003. Of these 42 have been realised at a combined internal
rate of return of 24%. As at 31 December 2022 co-investment exposure was
43.0 per cent of the portfolio, which is approaching the current threshold.
Having considered the benefits of co-investments, the Manager's record in this
area, and the diversification of the current portfolio of both funds and
co-investments, the Board believes that increasing exposure in this area would
be in Shareholders' interests. Accordingly, it is proposed to target a
balanced exposure to co-investments and funds over the long-term. To
facilitate this, and allow for fluctuations in the short-term, it is proposed
to raise the upper limit for co-investments from 50 per cent to 65 per cent of
total assets at the time of investment. This would allow the Manager to
maintain a good balance of funds and co-investments within the portfolio and
avoid the risk of being excluded from making new co-investments due to strong
performance by the co-investment portfolio.
Although this change is an extension of the Company's current activities, it
does represent a material adjustment to the investment policy and is therefore
subject to approval by Shareholders at the forthcoming AGM.
Directorate Change
The Board recognises the value in both attracting fresh talent and the
maintenance of continuity and accordingly a plan has been developed to ensure
an orderly succession as Directors retire.
As part of this plan, at the Annual General Meeting to be held on 23 May 2023,
David Shaw will retire from the Board. David has served as a Director since
November 2009. I wish to place on record the Board's appreciation for his
support and guidance throughout his tenure and to thank him for his
contribution to the Company's success.
As a further part of the Board succession plan, it is anticipated that
Elizabeth Kennedy will retire from the Board at the conclusion of the
Company's 2024 Annual General Meeting.
The Board will also recruit a new Director, taking account of diversity as
part of this process.
Ownership of the Manager
On 8 November 2021, BMO sold its asset management business in Europe, the
Middle East and Africa, ("BMO GAM EMEA") to Columbia Threadneedle Investments.
Since November 2021, Columbia Threadneedle Investments has been working to
integrate both organisations, focused on delivering the best possible outcomes
for all clients. The combined business has more than 2,500 staff, including
over 650 investment professionals based in North America, Europe and Asia. At
31 December 2022 it managed £485 billion of client assets.
On 4 July 2022, the entire BMO GAM EMEA business was rebranded as Columbia
Threadneedle Investments. As part of this process, the Company's investment
manager, BMO Investment Business Limited, was renamed Columbia Threadneedle
Investment Business Limited.
As many of the Company's Shareholders invest through the Columbia Threadneedle
Investments savings plans the Board resolved that continuing to align with the
brand of the investment manager would avoid unnecessary confusion and ensure
that the Company maximised the benefits of the broader Columbia Threadneedle
Investments brand.
On 30 June 2022 the Company therefore announced that it had changed its name
from BMO Private Equity Trust PLC to CT Private Equity Trust PLC. The
Company's website address was also amended from 4 July 2022 to become
ctprivateequitytrust.com and its trading instrument display mnemonic ("TIDM"
or "ticker") changed to CTPE.
Throughout the change of ownership of the investment manager, the Board sought
and received confirmation from senior management at Columbia Threadneedle
Investments of the importance of maintaining stability and continuity of the
teams which support the Company. The Board welcomes these assurances and will
ensure that Shareholders are kept informed of developments as this new
relationship evolves.
Annual General Meeting
The Annual General Meeting ("AGM") will be held at 12 noon on 23 May 2023 at
the offices of Columbia Threadneedle Investments, Exchange House, Primrose
Street, London EC2A 2NY. This will be followed by a presentation by Hamish
Mair, the Company's Investment Manager on the Company and its investment
portfolio.
For Shareholders who are unable to attend the meeting, any questions they may
have regarding the resolutions proposed at the AGM or the performance of the
Company can be directed to a dedicated email account,
petagm@columbiathreadneedle.com, by Tuesday 16 May 2023. The Board will
endeavour to ensure that questions received by such date will be addressed at
the meeting. The meeting will be recorded and will be available to view on
the Company's website, ctprivateequitytrust.com, shortly thereafter. All
Shareholders that cannot attend in person are encouraged to complete and
submit their Form of Proxy or Form of Direction in advance of the meeting to
ensure that their votes will count.
Outlook
Conditions within the private equity market have changed during 2022. An
initially surprisingly benign reaction to the Russian invasion of Ukraine and
its concomitant effects dissipated towards the end of the year as the
challenges of inflation, higher interest rates and supply chain problems made
their presence felt. That said the large element of the portfolio involved in
tech enabled and healthcare related companies continued to make fundamental
progress and to attract buyers at attractive prices keeping the realisations
not far below historically high levels. The positive momentum exceeded the
drag factors in 2022 delivering another good overall return. We expect that it
will be harder to achieve exits this year and it also looks as though fund
raising for private equity funds is becoming considerably more arduous.
Whilst a cautionary note is justified this does not mean that the underlying
growth characteristics of so many of our investee companies and the skill of
our investment partners will not continue to deliver positive returns for
Shareholders. There are also other supportive factors. In particular there
is a well-financed tier of larger private equity funds in the size bracket
above us with the capital and the will to invest and many of our investee
companies will prove attractive to them. Lastly there remains a steady
increase in investors' appetite for private equity globally. This all adds up
to the prospect of a healthy two-way market with continuing opportunity and
strong demand for high quality and resilient investments.
Richard Gray
Chairman
Investment Manager's Review
Introduction
2022 has been another year of substantial progress for the Company. This has
been against a background of multiplying challenges in the international
economy. Some of this stems from the recovery following the pandemic with
catch up demand, shortages of labour and other resources and continuing
disruption in some key countries leading to significant supply chain
inefficiencies. These issues have been exacerbated and added to by the
consequences of the Russian military invasion of Ukraine on 24 February. The
rise in energy prices has acted quickly to raise inflation to levels unseen in
the western economies for decades. Inflation in food prices has also resulted
from the warfare in Ukraine. Interest rates have risen internationally quickly
from a very low base from the third quarter of the year. In some economies
there is a "cost of living crisis". Despite all of these issues the private
equity industry has continued for much of the year in a relatively untroubled
and resilient manner with strong dealflow continuing to fuel new deals and
realisations being achieved at good prices across the breadth of the private
equity market. The substantial commitments to private equity funds which have
built up in recent years are being drawn down steadily. As the year progressed
and after the year end we have seen some evidence of a slowing in the rate of
new investments and exits and also a more difficult fund raising environment
for private equity funds. This is not surprising given the multiple
uncertainties faced by many investors.
That all said, the investee companies in our portfolio have generally seen
good growth in revenues and profits over the year. Many of them are in areas
where the longer-term growth outlook remains intact notwithstanding all the
pressures noted above. Often this is because they are involved in niche
markets experiencing secular growth. A number of these companies are involved
in technology enabled businesses often benefitting from the increased
digitalisation of society with many companies developing or adapting software
for a range of business and consumer applications. In addition, we have seen
sustained interest in companies with a link to healthcare which also has
secular growth underpinned by demographics and technological advances. Nearly
half our portfolio is invested in technology and healthcare sectors. In
challenging circumstances, the private equity skills set becomes ever more
relevant and as witnessed during the pandemic the best private equity managers
have the ability to refocus and reorient their efforts towards deploying
capital and expertise where it makes superior returns. The private equity
model involves a direct alignment of interest between company management,
private equity managers and their investors. This alignment coupled with
pricing discipline and a long-term investment horizon continue to form the
foundation of strong returns.
New Investments
Our dealflow of high-quality private equity funds and co-investments continues
to be diverse and plentiful. During the year we have added several investments
in both categories. Our aim is to achieve a long-term balance in the portfolio
between fund investments and direct holdings through co-investments.
Nine new commitments to funds were made during the year.
$14.0 million was committed to Corsair VI, the mid-market buyout fund with a
focus on financial services in North America and Europe. This is a firm we
have known for a number of years, mainly through our co-investment in
insurance company software business RGI.
€7.0 million was committed to MED Platform II, the ArchiMed managed
mid-market buyout fund with a focus on healthcare in North America and Europe.
There were three new commitments to funds based in the Nordic region. €10.0
million was committed to Procuritas VII, the fourth fund we have backed in a
series of highly successful mid-market buyout funds from this Stockholm based
manager. €7.0 million was committed to Verdane Edda III (technology-based
growth investments in the upper mid-market of Northern Europe) and €8.0
million to Verdane Capital XI (mid-sized and smaller growth investments in
Northern Europe including secondary portfolios as well as single assets). We
are already invested in the previous Verdane Edda fund.
£5.0 million has been committed to Northern Gritstone, an innovative new
company investing in university spin-outs from the Universities of Manchester,
Leeds and Sheffield. The fund also has the flexibility to invest in other
growth equity opportunities in the North of England.
$10.0 million was committed to Hg Saturn 3, the Hg managed upper mid-market
buyout fund focussed on software and services platforms in Europe and by
exception in North America.
We have increased our commitment to healthcare specialist Apposite Healthcare
III by £5 million bringing the total committed up £10 million. The fund is
more than half invested and progressing well.
We have committed €8 million to Volpi III, which is the second of this
Pan-European mid-market specialist's funds we have backed.
Nine new co-investments have been added during the year. The co-investment
portfolio now accounts for 43% of the overall portfolio.
$10.0 million (£7.8 million) was invested in Aurora Payment Solutions, a
digital payments solutions provider for over 20,000 US merchants in multiple
sectors including hospitality and transport. Headquartered in Texas, this
investment is led by Corsair Capital, who as noted above, are financial
services specialists.
£3.9 million was invested in Perfect Image, a Newcastle based IT services
group. The company's client base are SMEs often undertaking migrations to the
Cloud or bolstering their cybersecurity. The deal is led by Chiltern Capital,
a lower mid-market manager with whom we have co-invested on a number of
occasions.
€3.3 million (£2.8 million) was invested in Bomaki, a 'sushi samba' style
restaurant chain based in the Milan region of Northern Italy. The restaurants
offer a fusion cuisine combining influences from Japan and Brazil. The chain
starts with nine restaurants and the plan is to build out to 24 within three
years. The deal is led by Augens Capital who are well known to us from the San
Siro investment (funeral homes). There is also a co-lead investor, Buono
Ventures, who have specific expertise in the restaurant sector.
£3.0 million has been committed to Rephine, a UK headquartered outsourced
services provider of audit and regulatory consulting services to the global
pharmaceutical supply chain primarily through the provision of Good
Manufacturing Practice ("GMP") audits. Rephine's addressable market is worth
c.£420 million and is growing strongly driven by increasing regulatory
requirements, outsourcing of non-core activities by pharmaceuticals companies,
new types of drugs, more generic drugs and complex pharma supply chains. The
deal is led by Kester Capital with whom we have invested both through
co-investments and in their funds.
€9.0 million has been committed to Leader 96, a Bulgaria headquartered
electric bike assembler. The company has successfully transitioned from
conventional bikes towards e-bikes which now make up more than 90% of sales.
The market for e-bikes is well established in various European markets such as
Germany, The Netherlands and France and is growing rapidly in other markets
with lower penetration such as Spain and the UK. The investment is led by The
Rohatyn Group with whom we have co-invested on a number of occasions. €8.5
million of the commitment has been invested to date.
We have co-invested £5.1 million with Toronto based Peloton in 123Dentist, a
Canada based chain of dental practices.
We have also co-invested £2.3 million with MVM in Neurolens, a US developer
of an innovative prismatic lens technology to diagnose and treat digital
vision syndrome.
CAD $7 million (£4 million) has been committed to MedSpa, a Canada based
chain of medical aesthetics clinics. Operating in both Canada and the USA the
company specialises in non-invasive cosmetic services and now has 30 clinics.
The investment is led by the Toronto based healthcare private equity firm
Persistence Capital. £1.7 million of the commitment was drawn initially with
the remainder available to be called to finance the expansion of the chain.
£4.7 million was invested in Family First, a high quality nursery group
operating principally in London and the South East of England with a total of
96 sites. The investment is led by August Equity and we are investing
alongside August Equity V.
Two secondary investments were made during the year. The Company acquired all
the limited partnership interests in F&C European Capital Partners LP, the
2007 vintage mid-market buyout fund of funds which shares the same management
team as the Company. This provided sought after liquidity to the fund's
investors and an attractive medium-term investment for our shareholders. £4.4
million was invested which represented a discount to the prevailing NAV of
approximately 50%. The portfolio contains a limited number of older holdings
which should deliver a good return as they are gradually realised over the
next few years. €3.0 million was also invested as a secondary in Kurma
Biofund II, an early stage buyout fund with a focus on life sciences in
Europe. The management company is based in France and is a subsidiary of the
leading French manager Eurazeo.
The funds in the portfolio drew capital for many new investments in the
period.
In the UK and Europe there were a number of new deals. Several of these are
linked to software or healthcare and in some cases to both. In all cases these
are companies focusing on niche fast growing sectors.
FPE Fund III called £0.9 million for Dynamic Planner a leading software
provider to the UK wealth management sector. FPE III also called £0.6 million
for Egress, a provider of migration and managed services enabling mainly NHS
and local authority customers to move to the cloud.
Kester Capital called £0.3 million for Optibrium a software company focusing
on drug discovery for the pharmaceuticals sector. Kester also called £1.0
million for Rephine, the provider of GMP audits and regulatory consultancy to
the pharmaceutical sector. As noted above this is already a co-investment of
ours.
Agilitas 2020 Fund called £0.7 million for Frontier Medical (pressure ulcer
care products) and Prodieco (pharmaceutical packaging).
MVM V called £0.8 million for three companies; Vero Bioscience (the provider
of a novel nitric oxide delivery system with applications for newborn babies
and cardiac patients where we are also a co-investor), OptiNose (a drug
delivery company where its product XHANCE treats chronic sinusitis), and Nalu
(minimally invasive electronic pulse medtech solutions for chronic neuropathic
pain). MVM V also invested £0.6 million in Neurolens, a provider of solutions
to diagnose and treat digital vision syndrome. This is also a co-investment.
In the software area Volpi III called £0.7 million for Xalient which is a
provider of software defined wide area networks (SD-WANN) and cybersecurity
services.
August Equity V has been active with several new deals. August Equity V called
£3.6 million for three companies; Medivet (veterinary care), AAB
(professional services) and One Touch (provider of care management software
for the social care sector) as well as follow-on investments for high acuity
care provider Orbis and cyber security specialist Cyber 360.
Apiary called £0.4 million for MediaSense (technology enabled adviser to
global corporations) and £0.3 million for LearnPro (virtual reality
e-learning solutions for emergency services such as police, fire and rescue,
health services, etc.).
Piper Private Equity VI called £0.8 million for premium pet accessories brand
Omlet where we are a co-investor.
In Continental Europe there is also a technology or healthcare aspect to many
of the recent investments.
In the Nordic region Procuritas was active with £0.7 million called for
Werksta (Automotive repair shops) by its funds VI and VII. This investment was
acquired from Procuritas V. Procuritas remain in the lead on the deal but have
brought in external investors for this second stage of the investment's
growth. In Finland Vaaka III called £0.4 million for Medbase a provider of
decision support databases for professionals and organisations covering for
example drug interactions with other drugs and potential adverse effects.
Vaaka IV have called £0.7 million for Bolt Works (staffing services with a
digital platform).
In Central and Eastern Europe ARX CEE IV called £0.8 million mainly for Czech
Republic based Brebeck (carbon fibre components for the motorsports industry)
and Klient (Hungarian outsourced accounting firm). Avallon III called £0.4
million for Globema (provider and integrator of geospatial location-based
software).
In Germany, DBAG VII invested £0.6 million in Itelyum (specialist in
hazardous waste recycling). DBAG VIII and VIIIB have together called £0.7
million for Freiheit, a pioneer in agile software development and an
additional £0.6 million for Dantherm (climate control solutions) which we
previously had exposure to through Procuritas V.
In France and Italy, Chequers Capital XVII has been active with £1.3 million
called for three new investments and one partial reinvestment; My Mobility
(transportation for disabled children and adults in France), Somacis (complex
printed circuit boards in Italy), Selini (equipment rental in Italy) and
reinvestment of part of the proceeds from Serma (electronics testing). Med
Platform II called £0.8 million for California based Natus Medical (screening
and diagnostics for neurological conditions). Corpfin V called £0.5m for
Vitaly, the number two company in Spain in occupational risk prevention.
Our US based and global investment partners have also been active.
A large drawdown of £4.7 million was from Corsair VI which funded two new
investments; HungerRush, an all-in-one Point of Sale and restaurant management
platform focused on quick service and casual dining operators, and Miracle
Mile an Independent Financial Adviser and Registered Investment Advisor with
some $4 billion of assets under management managed from five offices in the
USA.
In the USA Graycliff IV called £0.4 million for Landmark (designer,
fabricator and installer of elevated water towers).
The total of co-investments and drawdowns from funds in the year was £88.7
million which was an increase of 7% on 2021.
Realisations
At points during the year there has been some debate in the financial press
about the reliability of private equity valuations and partly because of this
and despite delivering good increases in NAV and growing dividends, our
shares, and those of our close competitors, have languished at a significant
discount. There is a simple test of the soundness of private equity valuations
and that is by considering what others will pay for an investee companies'
equity. This year we have had over £125 million in realisations representing
more than 25% of the starting Net Asset Value of the company. This is some 20%
below the record-breaking result for 2021, which was boosted by catch up post
Covid, but it is otherwise a very healthy total. Looking at the 60 exits
achieved during the year the average uplift from the previous carrying value
on exit was 36% which compares with 32% for the same statistic for last
year. The weighted average uplift on exit was 73% (67% in 2021). The average
exited company had been held at 2.9x cost immediately prior to exit and was
exited at a money multiple of 4.0x cost. The equivalent analysis for 2021 was
3.3x rising to 4.4x on exit. These statistics provide prima facie evidence
that private equity valuations are fair and provide substantial rebuttal that
the deep discounts to NAV are in any way justified.
There has been a healthy flow of realisations from across the portfolio. 52%
of exits were to other private equity firms, 44% to trade buyers and 2% to
each of management and IPO. By geography and value 42% of exits were in the
UK, 24% Italy and 15% Netherlands.
Our largest and most notable exit was of Italian funeral homes company San
Siro which was sold by Augens Capital to French Infrastructure fund Antin on
10 November 2022. This exit was at a value of £34.9 million for the Company,
75% of this was received in cash and 25% rolled into the new deal. This
represents an uplift of £23.3 million on the previous carrying value and a
return of 8.7x cost and an IRR of 83%. The investment thesis of building a
chain of funeral homes and adding other facilities such as crematoria has been
followed very well and this has resulted in this exceptional outcome. Augens
Capital provide a compelling example of the benefits of identifying and
backing emerging mid-market private equity firms in less obvious markets.
The second largest realisation of £18.1 million was from STAXS the cleanroom
consumables company based in The Netherlands. This Silverfleet led investment
performed exceptionally well aided to some extent by Covid. It has been sold
to a family-owned company with a diversified portfolio of investments. £15.7
million of the proceeds came from our co-investment and a further £2.4
million was from the Silverfleet European Development Fund. The overall return
was an impressive 6.2x cost and an IRR of 87%.
Another very significant realisation was from European buyout fund Volpi where
we received a distribution of £7.4 million which was the proceeds from the
sale of Irish IT managed services provider Version 1. This represents an
excellent 5.9x cost and an IRR of 39%.
GCP Europe II, managed by Kester Capital, achieved a strong exit of contract
research organisation Avania Clinical which specialises in medical devices.
£6.7 million was received representing 8.4x and an IRR of 46%.
Part of our holding in energy services company Ashtead Technology, which is
now listed on AIM, was sold down during the year returning £2.8 million.
£2.6 million was received as the second and final instalment of the
realisation proceeds from Calucem, the Croatia based calcium aluminate cement
manufacturer in which we coinvested with Ambienta. The overall return was 1.9x
and an IRR of 11%.
August Equity IV had three exits. The sale of AMTIVO the ISO compliance
services company returned £4.5 million (8.1x, 52%). Energy procurement
company Zenergi returned £2.9 million (5.3x cost, 50% IRR) and they also
exited Dental Partners returning £2.6 million (1.8x cost, 15% IRR).
Inflexion continues its impressive run of exits. £2.7 million was returned
from compliance risk management company Alcumus (5.9x cost, 37% IRR). £1.3
million came in from the sale of building products company Marley which has
been sold to the publicly listed company Marshalls (3.5x cost, 58% IRR).
Inflexion also exited Goals, the football centres chain, returning £0.5
million (4.3x cost, 55% IRR). We have received £2.3 million from the sale
of wealth management company Succession (3.4x cost, 20% IRR), £1.2 million
from IT recruitment specialist K2 (5.0x, 33% IRR) and £0.9 million from
Virgin Experience Days (23.7x cost, 64% IRR). Inflexion Partnership Capital II
sold global payments consultancy Phenna returning £1 million (5.6x cost,
146%).
Primary Capital IV had two exits; railway equipment and services provider
Readypower returned £1.4 million (4.6x cost, 39% IRR) and the accredited
online courses company ICS Learn £1.1 million (4.4x cost, 49% IRR).
Dunedin Buy-out Fund II returned £1.7 million through the sale of SAP
staffing company RED and the final exit of parcels company Citisprint (2.7x
cost, 11% IRR and 2.1x cost, 15% IRR respectively).
Silverfleet European Development Capital exited TrustQuay the trust
administration software provider returning £1.6 million (3.1x cost, 40% IRR).
RJD finally secured an exit for our co-investment in apprenticeship training
company Babington with £2.0 million representing 0.9x cost. Another £0.7
million came in from this exit for the RJD III Fund.
Our co-investment in RGI, the Italy based provider of software to the
Insurance sector, was sold returning £3.6 million. This investment was led by
Corsair Capital and achieved 1.5x and an IRR of 11%. There is scope for the
return to improve through deferred consideration depending on the final exit
proceeds when new owner CVC sells.
Astorg VI exited the Switzerland based Autoform which provides software for
use in sheet metal forming in a sale to Carlyle which returned £2.4 million
(4.1x cost, 30% IRR). Astorg VI also returned £1.6 million from the sale of
healthcare products company HRA (2.3x cost, 17% IRR).
ArchiMed II sold Austrian medical and veterinary diagnostics company Eurolyser
returning £1.4 million (6.0x cost, 79% IRR).
In Spain Corpfin IV finished the exit of Preving returning £0.4 million (6.3x
cost, 49% IRR).
In the Nordics Procuritas V sold automotive repair shops chain Werksta to its
later funds and external investors returning £1.7 million (5.6x cost, 35%
IRR). Verdane Edda exited Scanmarket (cloud-based e-sourcing software)
returning £0.5m (2.5x cost, 30% IRR). Finland based Vaaka II exited the
leading physiotherapy company in that country, Fysios, returning £0.5 million
(3.3x cost, 20% IRR). Verdane Edda has returned £1.7 million from the sale of
vitamin K2 producer Kappa Bioscience (4.3x cost, 80% IRR). Summa II also sold
chemicals management software company EcoOnline returning £0.5 million.
In France, Chequers Capital XVII exited electronics testing company Serma
returning £0.8 million (2.4x cost, 32% IRR). Chequers rolled over some of the
proceeds into a new Ardian led deal. Chequers Capital XVII exited Biolchim the
producer of special fertilisers returning £1.1 million (3.8x cost, 36% IRR).
In Poland, Avalon MBO Fund II exited engineering and technical building
services company Stangl Technik through a sale to Astorg returning £0.5
million (5.8x cost, 50% IRR).
In the USA Blue Point Capital exited Kendall Vegetation Services, which
manages vegetation for utilities and municipalities across the south-eastern
and central USA, returning £0.7 million (3.5x cost, 46% IRR). Graycliff III
returned £2.0 million (5.5x cost, 61% IRR) with the sale of electric motors
company Worldwide Electric.
Total realisations in the year amounted to £125.1 million. Although this was
more than 20% below the record total in 2021, it was easily the second highest
realisation total for the company and represented over 25% of the starting net
asset value.
Valuation Changes
There were many changes in valuation over the course of the year. The uplifts
are mainly associated with exits and with strong underlying trading.
Downgrades reflect some of the challenges noted above which can put pressure
on profits or on valuation multiples. Sometimes there are company specific
issues. Often companies which we have reduced in value recover. Changes in
economic conditions can lead to changes in business plan or indeed in overall
strategy. More often an original investment thesis is delayed or modified and
value is restored.
The largest uplift in the year was for San Siro (£23.2 million) reflecting
the excellent realisation of 75% of our holding. The second largest uplift was
from cleanroom consumables company STAXS (£5.8 million). August Equity IV
(£4.0 million) was also boosted by its exits as was GCP Europe II (Kester)
(£4.0 million) by its exit of contract research company Avania. Volpi (£3.5
million) benefitted from the sale of Version 1. Silverfleet European
Development Capital (£2.1 million) was boosted by its exits of STAXS and
Trust Quay. Corpfin IV (£2.6 million) was also lifted by exits. Amongst our
co-investments Prollenium (£2.3 million) and Walkers Transport (£2.0
million) were uplifted due to stronger trading.
There were some downgrades covering both co-investments and funds. In the
former category Weird Fish (-£7.2 million) had a difficult year as the
ecommerce element of their trade declined and margins came under pressure with
the need to discount to clear older stock. Ambio Holdings (-£5.5 million) is
down reflecting lower valuations of comparable listed companies. Funeral plans
company Avalon (-£2.9 million) has had another difficult year. Its market is
in turmoil following the FCA's decision to regulate funeral plans. Oil Rig
cuttings business TWMA is down (-£2.4 million) reflecting some contract
delays, however the outlook is promising. Leader 96 our recent ebikes
investment is off to a difficult start (-£2.1 million) with stocking and
supply chain issues. 1 Med (-£1.4 million) has had some delays to contracts
caused by some unforeseen regulatory developments. Amongst the funds Aliante 3
(-£2.7 million) and Procuritas IV (-£2.1 million) were down over the year.
Financing
The flow of realisations noted above has remained strong throughout the year
and this has exceeded the substantial deployment of capital into new
investments. We therefore end the year with very modest gearing and nearly all
of our substantial borrowing facilities available. Interest rates have risen
markedly during the year and so we must be more certain than ever that the
investments we make will deliver returns which far exceed the cost of debt.
That has been the case throughout the Company's history and the excellent
dealflow and essentially strong fundamental progress of the current portfolio
gives us confidence that this will remain the case.
Outlook
In the early months of 2023, the private equity market has remained buoyant
with steady dealflow with many new investments and exits being accomplished.
There is no shortage of investable opportunities and in recent months pricing
of deals appears generally reasonable. For the mid-market companies in which
we invest there is consistent demand from larger private equity funds and
trade buyers which should maintain a steady flow of realisations. We have
experienced two consecutive years of high realisations with some exceptional
individual exits. Such exceptions cannot be easily predicted nor taken for
granted but with a broad portfolio with a steadily maturing element we should
expect substantial further exits. Exits represent the fulfilment of private
managers plans and reward all stakeholders. They are the culmination of years
of diligent work by energetic and skilled company managers and private equity
managers. Through investing with these experts we and our Shareholders have
benefitted and will continue to benefit and we remain confident of building
shareholder value in 2023 and beyond.
Hamish Mair
Investment Manager
CT Investment Business Limited
Portfolio Summary
Ten Largest Holdings Total Valuation £'000 % of Total Portfolio
As at 31 December 2022
Sigma 18,174 3.4
Inflexion Strategic Partners 15,030 2.8
Coretrax 13,449 2.5
F&C European Capital Partners 10,273 1.9
TWMA 10,053 1.9
Bencis V 9,816 1.9
Aurora Payment Solutions 9,746 1.8
Jollyes 9,722 1.8
SEP V 9,084 1.7
San Siro 8,872 1.7
114,219 21.4
Portfolio Holdings
Investment Geographic Focus Total % of Total Portfolio
Valuation
£'000
Buyout Funds - Pan European
F&C European Capital Partners Europe 10,273 1.9
Apposite Healthcare II Europe 8,644 1.6
Stirling Square Capital II Europe 7,842 1.5
Volpi Capital Northern Europe 6,725 1.3
Agilitas 2015 Fund Northern Europe 6,210 1.2
Apposite Healthcare III Europe 5,986 1.1
ArchiMed II Western Europe 4,589 0.9
Astorg VI Western Europe 3,458 0.7
Silverfleet European Dev Fund Europe 1,227 0.2
TDR Capital II Western Europe 821 0.2
TDR II Annex Fund Western Europe 728 0.1
Agilitas 2020 Fund Europe 704 0.1
Med Platform II Global 650 0.1
Volpi III Northern Europe 398 0.1
ArchiMed MED III Global 233 0.1
Total Buyout Funds - Pan European 58,488 11.1
Buyout Funds - UK
Inflexion Strategic Partners United Kingdom 15,030 2.8
August Equity Partners V United Kingdom 6,605 1.2
August Equity Partners IV United Kingdom 5,499 1.0
Inflexion Supplemental V United Kingdom 5,408 1.0
Apiary Capital Partners I United Kingdom 5,294 1.0
Inflexion Buyout Fund V United Kingdom 5,114 1.0
Inflexion Buyout Fund IV United Kingdom 4,325 0.8
Piper Private Equity VI United Kingdom 4,141 0.8
Kester Capital II United Kingdom 3,722 0.7
Inflexion Enterprise Fund IV United Kingdom 2,664 0.5
FPE Fund II United Kingdom 2,538 0.5
Inflexion Partnership Capital II United Kingdom 2,309 0.4
FPE Fund III United Kingdom 2,039 0.4
Inflexion Partnership Capital I United Kingdom 2,035 0.4
Inflexion Enterprise Fund V United Kingdom 2,013 0.4
RJD Private Equity Fund III United Kingdom 1,963 0.4
Inflexion 2012 Co-Invest Fund United Kingdom 1,897 0.4
Inflexion Supplemental IV United Kingdom 1,593 0.3
Horizon Capital 2013 United Kingdom 1,566 0.3
GCP Europe II United Kingdom 1,362 0.3
Primary Capital IV United Kingdom 1,238 0.2
Inflexion 2010 Fund United Kingdom 1,008 0.2
Dunedin Buyout Fund II United Kingdom 915 0.2
Piper Private Equity V United Kingdom 815 0.1
Inflexion Buyout Fund VI United Kingdom 410 0.1
August Equity Partners III United Kingdom 2 -
Piper Private Equity VII United Kingdom (67) -
Total Buyout Funds - UK 81,438 15.4
Investment Geographic Focus Total % of Total Portfolio
Valuation £'000
Buyout Funds - Continental Europe
Bencis V Benelux 9,816 1.9
Aliante Equity 3 Italy 8,601 1.6
Corpfin Capital Fund IV Spain 6,839 1.3
DBAG VII DACH 6,191 1.2
Vaaka III Finland 5,484 1.0
Chequers Capital XVII France 5,263 1.0
Capvis III CV DACH 5,155 1.0
Montefiore IV France 4,671 0.9
Summa II Nordic 4,641 0.9
ARX CEE IV Eastern Europe 4,188 0.8
Procuritas VI Nordic 4,017 0.8
Italian Portfolio Italy 3,931 0.7
Verdane Edda Nordic 3,410 0.6
DBAG VIII DACH 3,078 0.6
Procuritas Capital IV Nordic 3,055 0.6
Avallon MBO Fund III Poland 2,764 0.5
Capvis IV DACH 2,556 0.5
Summa I Nordic 2,424 0.5
Montefiore V France 2,185 0.4
NEM Imprese III Italy 2,130 0.4
DBAG Fund VI DACH 2,062 0.4
Chequers Capital XVI France 2,029 0.4
Vaaka II Finland 1,992 0.4
Corpfin V Spain 1,536 0.3
Portobello Fund III Spain 1,312 0.2
DBAG VIIB DACH 1,243 0.2
Ciclad 5 France 1,064 0.2
Avallon MBO Fund II Poland 840 0.2
Ciclad 4 France 743 0.1
Vaaka IV Finland 708 0.1
DBAG VIIIB DACH 594 0.1
PineBridge New Europe II Eastern Europe 566 0.1
Procuritas VII Nordic 538 0.1
DBAG Fund V DACH 459 0.1
Procuritas Capital V Nordic 298 -
Gilde Buyout Fund III Benelux 93 -
Capvis III DACH 52 -
N+1 Private Equity Fund II Iberia 43 -
Verdane XI Northern Europe (46) -
Summa III Northern Europe (253) -
Total Buyout Funds - Continental Europe 106,272 20.1
Investment Geographic Focus Total % of Total Portfolio
Valuation £'000
Private Equity Funds - USA
Blue Point Capital IV North America 8,045 1.5
Camden Partners IV United States 3,086 0.6
Graycliff III United States 2,993 0.6
Stellex Capital Partners North America 2,926 0.5
Blue Point Capital III North America 2,835 0.5
Graycliff IV North America 2,415 0.5
HealthpointCapital Partners III United States 386 0.1
Blue Point Capital II North America 270 -
Total Private Equity Funds - USA 22,956 4.3
Private Equity Funds - Global
Corsair VI Global 4,453 0.9
F&C Climate Opportunity Partners Global 904 0.2
PineBridge GEM II Global 710 0.1
AIF Capital Asia III Asia 94 -
PineBridge Latin America II South America 58 -
Warburg Pincus IX Global 3 -
Hg Saturn 3 Global (6) -
Total Private Equity Funds - Global 6,216 1.2
Venture Capital Funds
SEP V United Kingdom 9,084 1.7
MVM V Global 4,055 0.8
Kurma Biofund II Europe 2,668 0.5
SEP IV United Kingdom 1,601 0.3
Northern Gritstone United Kingdom 1,050 0.2
Pentech Fund II United Kingdom 720 0.1
SEP II United Kingdom 275 0.1
Life Sciences Partners III Western Europe 246 0.1
Environmental Technologies Fund Europe 64 -
SEP III United Kingdom 43 -
SEP VI Europe (331) (0.1)
Total Venture Capital Funds 19,475 3.7
Direct - Quoted
Ashtead United Kingdom 5,956 1.1
Total Direct - Quoted 5,956 1.1
Secondary Funds
The Aurora Fund Europe 724 0.1
Total Secondary Funds 724 0.1
Investment Geographic Focus Total % of Total Portfolio
Valuation £'000
Direct Investments/Co-investments
Sigma United States 18,174 3.4
Coretrax United Kingdom 13,449 2.5
TWMA United Kingdom 10,053 1.9
Aurora Payment Solutions United States 9,746 1.8
Jollyes United Kingdom 9,722 1.8
San Siro Italy 8,872 1.7
ATEC (CETA) United Kingdom 8,386 1.6
AccuVein United States 7,748 1.5
Weird Fish United Kingdom 7,535 1.4
Amethyst Radiotherapy Europe 7,348 1.4
Velos IoT (JT IoT) United Kingdom 7,002 1.3
Prollenium North America 6,887 1.3
Swanton United Kingdom 6,837 1.3
Ambio Holdings United States 6,581 1.2
Rosa Mexicano United States 6,220 1.2
Leader96 Bulgaria 6,133 1.2
Orbis United Kingdom 5,525 1.0
Ashtead United Kingdom 5,477 1.0
Perfect Image United Kingdom 5,439 1.0
Walkers Transport United Kingdom 5,235 1.0
Family First United Kingdom 5,045 1.0
Cyberhawk United Kingdom 5,035 1.0
Omlet United Kingdom 5,027 1.0
123Dentist Canada 4,908 0.9
Dotmatics United Kingdom 4,548 0.9
1Med Switzerland 4,499 0.9
Agilico (DMC Canotec) United Kingdom 4,008 0.8
Contained Air Solutions United Kingdom 3,949 0.8
Alessa (Tier1 CRM) Canada 3,594 0.7
Habitus Denmark 3,577 0.7
Avalon United Kingdom 3,315 0.6
PathFactory Canada 3,289 0.6
Bomaki Italy 3,007 0.6
Collingwood Insurance Group United Kingdom 2,977 0.6
Neurolens United States 2,280 0.4
MedSpa Partners Canada 1,646 0.3
Vero Biotech United States 1,603 0.3
Rephine United Kingdom 1,392 0.3
Babington United Kingdom 772 0.1
TDR Algeco/Scotsman Europe 192 -
Total Direct - Investments/Co-investments 227,032 43.0
Total Portfolio 528,557 100.0
CT Private Equity Trust PLC
Statement of Comprehensive Income for the
year ended 31 December 2022
(Unaudited)
Revenue Capital Total
£'000 £'000 £'000
Income
Gains on investments held at fair value - 77,330 77,330
Exchange losses - (2,083) (2,083)
Investment income 4,550 - 4,550
Other income 186 - 186
Total income 4,736 75,247 79,983
Expenditure
Investment management fee - basic fee (464) (4,172) (4,636)
Investment management fee - performance fee - (5,402) (5,402)
Other expenses (1,077) - (1,077)
Total expenditure (1,541) (9,574) (11,115)
Profit before finance costs and taxation 3,195 65,673 68,868
Finance costs (254) (2,294) (2,548)
Profit before taxation 2,941 63,379 66,320
Taxation - - -
Profit for year/total comprehensive income 2,941 63,379 66,320
Return per Ordinary Share 4.01p 86.42p 90.43p
CT Private Equity Trust PLC
Statement of Comprehensive Income for the
year ended 31 December 2021
(Audited)
Revenue Capital Total
£'000 £'000 £'000
Income
Gains on investments held at fair value - 128,313 128,313
Exchange gains - 3,686 3,686
Investment income 6,719 - 6,719
Other income 3 - 3
Total income 6,722 131,999 138,721
Expenditure
Investment management fee - basic fee (394) (3,546) (3,940)
Investment management fee - performance fee - (4,502) (4,502)
Other expenses (993) - (993)
Total expenditure (1,387) (8,048) (9,435)
Profit before finance costs and taxation 5,335 123,951 129,286
Finance costs (255) (2,298) (2,553)
Profit before taxation 5,080 121,653 126,733
Taxation - - -
Profit for year/total comprehensive income 5,080 121,653 126,733
Return per Ordinary Share 6.87p 164.53p 171.40p
CT Private Equity Trust PLC
Balance Sheet
As at 31 December 2022 As at 31 December 2021
(Unaudited)
(Audited)
£'000 £'000
Non-current assets
Investments at fair value through profit or loss 528,557 483,047
528,557 483,047
Current assets
Other receivables 389 230
Cash and cash equivalents 34,460 32,702
34,849 32,932
Current liabilities
Other payables (7,411) (6,610)
Interest-bearing bank loan (16,618) (15,726)
(24,029) (22,336)
Net current assets 10,820 10,596
Total assets less current liabilities 539,377 493,643
Non-current liabilities
Interest-bearing bank loan (21,702) (20,196)
Net assets 517,675 473,447
Equity
Called-up ordinary share capital 739 739
Share premium account 2,527 2,527
Special distributable capital reserve 10,026 15,040
Special distributable revenue reserve 31,403 31,403
Capital redemption reserve 1,335 1,335
Capital reserve 471,645 422,403
Shareholders' funds 517,675 473,447
Net asset value per Ordinary Share 710.65p 640.30p
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 year ended 31 December 2022 (unaudited)
Net assets at 1 January 2022 739 2,527 15,040 31,403 1,335 422,403 - 473,447
Buyback of ordinary shares - - (5,014) - - - - (5,014)
Profit for the year/total comprehensive income - - - - - 63,379 2,941 66,320
Dividends paid - - - - - (14,137) (2,941) (17,078)
Net assets at 31 December 2022 739 2,527 10,026 31,403 1,335 471,645 - 517,675
For the year ended 31 December 2021 (audited)
Net assets at 1 January 2021 739 2,527 15,040 31,403 1,335 308,439 - 359,483
Profit for the year/total comprehensive income - - - - - 121,653 5,080 126,733
Dividends paid - - - - - (7,689) (5,080) (12,769)
Net assets at 31 December 2021 739 2,527 15,040 31,403 1,335 422,403 - 473,447
CT Private Equity Trust PLC
Statement of Cash Flows
Year ended Year ended
31 December 2022 31 December 2021
(Unaudited) (Audited)
£000 £000
Operating activities
Profit before taxation 66,320 126,733
Adjustments for:
Gains on disposals of investments (62,951) (90,281)
Gains on account of fair value movement (14,379) (38,032)
Exchange differences 2,083 (3,686)
Finance costs 2,548 2,553
(Increase)/decrease in other receivables (2) 531
Increase in other payables 358 2,279
Net cash (outflow)/inflow from operating activities (6,023) 97
Investing activities
Purchases of investments (88,593) (81,234)
Sales of investments 120,413 152,749
Net cash inflow from investing activities 31,820 71,515
Financing activities
Repayment of bank loans - (31,243)
Arrangement costs of loan facility (28) (236)
Interest paid (1,919) (2,607)
Equity dividends paid (17,078) (12,769)
Buyback of ordinary shares (5,014) -
Net cash outflow from financing activities (24,039) (46,855)
Net increase in cash and cash equivalents 1,758 24,757
Currency losses - (399)
Net increase in cash and cash equivalents 1,758 24,358
Opening cash and cash equivalents 32,702 8,344
Closing cash and cash equivalents 34,460 32,702
Notes (unaudited)
1. The unaudited financial results, which were
approved by the Board on 27 March 2023, have been prepared in accordance with
UK adopted international accounting standards. Where presentation guidance set
out in the Statement of Recommended Practice "Financial Statements of
Investment Trust Companies and Venture Capital Trusts" ('SORP') issued by the
Association of Investment Companies is consistent with the requirements of
international accounting standards, the Directors have sought to prepare the
financial statements on a basis compliant with the recommendations of the
SORP. The Directors have assessed Going Concern and consider it the
appropriate basis for the figures presented in the announcement.
The accounting policies adopted are consistent with those of the previous
financial year.
Standards issued but not yet effective
There are no standards or amendments to standards not yet effective that are
relevant to the Company and should be disclosed.
2. Returns per Ordinary Share are based on the
following weighted average number of shares in issue during the year:
73,342,303 (2021: 73,941,429)
The net asset value per Ordinary Share is based on the following number of
shares in issue at the year-end: 72,844,938 (2021: 73,941,429)
During the year ended 31 December 2022, the Company issued nil Ordinary
Shares. During the previous year ended 31 December 2021, the Company issued
nil Ordinary Shares. During the year ended 31 December 2022, the Company
bought back 1,096,491 Ordinary Shares to be held in treasury. During the
previous year ended 31 December 2021, the Company bought back nil Ordinary
Shares.
3. The Board has proposed an interim dividend of 6.79
pence per Ordinary Share, payable on 28 April 2023 to those Shareholders on
the register on 11 April 2023 with an ex-dividend date of 6 April 2023.
4. This results announcement is based on the Company's
unaudited financial statements for the year ended 31 December 2022 which have
been prepared in accordance with UK adopted international accounting
standards.
5. This announcement is not the Company's statutory
accounts. The full audited accounts for the year ended 31 December 2021,
which were unqualified and had no emphasis of matters, have been lodged with
the Registrar of Companies. The statutory accounts for the year to 31
December 2022 (on which the audit report has not been signed) will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting which will be held at Exchange House, Primrose Street, London, EC2A
2NY on 23 May 2023 at 12 noon.
6. The Annual Report and Accounts for the year will be
sent to Shareholders and will be available for inspection at the Company's
registered office, Quartermile 4, 7a Nightingale Way, Edinburgh, EH3 9EG and
the Company's website www.ctprivateequitytrust.com
(http://www.ctprivateequitytrust.com) . The Company intends to issue a
subsequent annual financial report announcement.
For more information, please contact:
Hamish Mair (Investment Manager) 0131 573 8300
Scott McEllen (Company Secretary) 0131 573 8300
hamish.mair@columbiathreadneedle.com.com
(mailto:hamish.mair@columbiathreadneedle.com.com) /
scott.mcellen@columbiathreadneedle.com
(mailto:scott.mcellen@columbiathreadneedle.com)
Appendix: Alternative Performance Measures
The Company uses the following Alternative Performance Measures ('APMs'):
Discount (or premium) - If the share price of an Investment Trust is less than
its Net Asset Value per share, the shares are trading at a discount. If the
share price is greater than the Net Asset Value per share, the shares are
trading at a premium.
31 December 2022 31 December 2021
Net Asset Value per share (pence) (a) 710.65 640.30
Share price per share (pence) (b) 423.00 489.00
Discount (c=(b-a)/a) (c) 40.5% 23.6%
Dividend Yield - The dividends declared for the year divided by the share
price at the year end.
Gearing - This is the ratio of the borrowings less cash of the Company to its
total assets less current liabilities (excluding borrowings and cash).
Borrowings may include: preference shares; debentures; overdrafts and short
and long-term loans from banks; and derivative contracts. If the Company has
cash assets, these may be assumed either to net off against borrowings, giving
a "net" or "effective" gearing percentage, or to be used to buy investments,
giving a "gross" or "fully invested" gearing figure. Where cash assets
exceed borrowings, the Company is described as having "net cash".
31 December 2022 31 December 2021
£'000 £'000
Borrowings less cash (a) 3,860 3,220
Total assets less current liabilities (excluding borrowings and cash) (b) 521,535 476,667
Gearing (c=a/b) (c) 0.7% 0.7%
Ongoing Charges - All operating costs expected to be incurred in future and
that are payable by the Company expressed as a proportion of the average Net
Assets of the Company over the reporting year. The costs of buying and
selling investments are excluded, as are interest costs, taxation, performance
fees, non-recurring costs and the costs of buying back or issuing Ordinary
Shares. Ongoing charges of the Company's underlying investments are also
excluded.
Year to Year to
31 December 2022 31 December 2021
Ongoing charges (£'000) 5,713 4,933
Ongoing charges as a percentage of average assets: 1.2% 1.2%
Ongoing charges (including performance fees) (£'000) 11,115 9,435
Ongoing charges (including performance fees) as a percentage of average net
assets:
2.3% 2.3%
Average net assets (£'000) 491,918 406,332
Total Return - The return to Shareholders calculated on a per share basis by
adding dividends paid in the period to the increase or decrease in the Share
Price or NAV. The dividends are assumed to have been reinvested in the form of
Ordinary Shares or Net Assets.
Year to 31 December 2022 Year to 31 December 2021
NAV per share at start of year (pence) 640.30 486.17
NAV per share at end of year (pence) 710.65 640.30
Change in year +11.0% +31.7%
Impact of dividend reinvestments +3.8% +4.1%
Total NAV return for the year +14.8% +35.8%
Year to 31 December 2022 Year to 31 December 2021
Share price per share at start of year (pence) 489.00 307.50
Share price per share at end of year (pence) 423.00 489.00
Change in year -13.5% +59.0%
Impact of dividend reinvestments +4.6% +7.2%
Total share price return for the year -8.9% +66.2%
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