RCS - Deutsche Beteiligung - Edison issues review on Deutsche Beteiligungs

Deutsche Beteiligungs AGAnnouncement

07/12/2018 16:45

RNS Number : 8792J
Deutsche Beteiligungs AG
07 December 2018
 


 
London, UK, 7 December 2018
Edison issues review on Deutsche Beteiligungs (DBAN)
Deutsche Beteiligungs (DBAG) reported FY18 net income of €33.6m, at the top of management's guidance range, with a 7.8% dividend-adjusted NAV return for the financial year. While net income was lower than in FY17, a €1.45 per share FY18 dividend has been proposed, representing a 3.6% increase on the prior year. FY18 saw DBAG reinvesting and growing its investment portfolio, agreeing seven new investments and one disposal, following an exceptional FY17 during which six new investments and seven divestments were agreed. DBAG has broadened its expertise outside of its traditional core sectors and, at end-FY18, 31% of the portfolio was represented by consumer goods, information technology, media & telecoms, real estate and healthcare companies. Relatively immature investments (younger than two years) now account for over half of DBAG's invested capital, and this contributes to a conservative outlook for FY19 while providing more promising medium-term prospects.
 
DBAG's share price premium to NAV has narrowed from 75.8% in January 2018 to 6.2% currently. After an exceptionally strong FY17, DBAG's slower NAV progress in FY18 and its cautious outlook for FY19 appear to have substantially lowered market expectations for its future growth. Our analysis suggests that the market may now be applying a c 30% underlying discount to the NAV of DBAG's private equity investments, compared to a c 40% premium previously (see page 4).  

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