Annual Financial Statements December 2022
28/04/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230428:nRSb7737Xa&default-theme=true
RNS Number : 7737X Marwyn Value Investors Limited 28 April 2023
LEI: 213800L5751QTTVEA774
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN
OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH
AFRICA, JAPAN, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA OR ANY
JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO
28 April 2023
MARWYN VALUE INVESTORS LIMITED (THE "COMPANY")
Annual Report and Financial Statements 2022
Marwyn Value Investors Limited announces the publication of its annual results
for the year ended 31 December 2022.
The Annual Report and Financial Statements are available on the 'Financial
Reports' section of the Company's website,
http://www.marwynvalue.com/company-information/financial-reports
(http://www.marwynvalue.com/company-information/financial-reports) , and will
be uploaded to, and available on, the National Storage Mechanism.
SUMMARY PERFORMANCE
Ordinary Shares
NAV Total Return(1) FTSE All-Share
Year to 31 December 2022 1.5% 0.3%
Since inception (1 March 2006 to 31 December 2022) 183.0% 149.9%
Net assets of £98.1 million, a decrease of £3.8 million since 31 December
2021, with £5.0 million paid out in dividends
· NAV per share of 176.8p as at 31 December 2022.
· Total NAV return of 1.5% since 31 December 2021.
· Share price down 24.0p since 31 December 2021 to 95p as at 31 December
2022. The share price discount to NAV increased to 46.3% as at 31 December
2022, compared to 35.2% as at 31 December 2021.
Continued significant distributions
· Quarterly dividends of 2.265p per share paid in February, May, August
and November 2022 with a further quarterly dividend of 2.265p expected to be
paid in each quarter of 2023. Total annual dividend of 9.06p per share
represents a yield of over 9.7% (based on share price of 92.5p as at 31 March
2023).
Strong cash position
· Look-through cash balance of £44.4 million at 31 December 2022 held
within the fund structure, supplemented by significant capital available for
investment within the portfolio entities.
2016 Realisation Shares
Shareholder Total Return(2) FTSE All-Share
Year to 31 December 2022 31.5% 0.3%
Since inception (30 November 2016 to 31 December 2022) 3.7% 37.2%
Net assets of £3.5 million, an increase of £0.8 million since 31 December
2021
· NAV per share of 376.0p as at 31 December 2022.
2021 Realisation Shares
Shareholder Total Return(2) FTSE All-Share
Year to 31 December 2022 0.8% 0.3%
Since inception (30 November 2021 to 31 December 2022) 4.2% 5.0%
Net assets of £668 thousand, an increase of £6 thousand since 31 December
2021
· NAV per share of 185.3p as at 31 December 2022.
Manager's Review of 2022 and Outlook for 2023
In 2022, we delivered a modest positive NAV performance for ordinary
shareholders of 1.5% amidst a difficult market environment, with the average
UK small-cap declining by 22%. Our significant cash position will now allow us
to capitalise on falling valuation multiples and tightening credit conditions.
These market conditions are revealing the weaknesses in leveraged investment
models, which we have consciously avoided, and are creating special situations
that present attractive entry prices. With continued outflows from UK active
equity funds, our focus remains on opportunities where we can act as the
principal investor and funding source.
Our investee companies, such as AdvancedAdvT led by Vin Murria OBE, have
demonstrated agility and discipline in their investment activities. Although
the offer for M&C Saatchi did not proceed, the financial impact on
AdvancedAdvT was minimal. With over £100 million in cash, a strong roster of
institutional investors, and a significant decline in technology valuations,
we believe AdvancedAdvT is well-positioned for 2023 under Vin's leadership.
Le Chameau, our premium footwear business led by Corry Taylor, has made
significant strides since 2019, overcoming global shipping and supply chain
disruptions as well as a post-Covid slowdown in demand. With a focus on
expanding its direct-to-consumer online business and increasing its
addressable customer base, Le Chameau aims to capitalise on the long-term
growth prospects of the premium outdoor market. However, the company will
proceed cautiously in the current market environment and prioritise
consolidating its achievements to date.
During 2022, we also announced new management partnerships with Mark Hodges
through Marwyn Acquisition Company II Limited and Waheed Alli through 450 plc
(previously Marwyn Acquisition Company plc). Mark Hodges brings a wealth of
experience from leadership roles at Centrica, Aviva, and Reassure and will
focus on the pensions and wealth management space. Waheed Alli has an
exceptional background in media and entertainment, with successful ventures
such as Planet 24, Shine, and Silvergate Media to his credit. We are excited
about the opportunities to acquire proven entertainment properties and
intellectual property that can be exploited in new ways and through new
channels.
In terms of prior investments, we were pleased to recognise the £10 million
VAT claim from our previous investment in Praesepe, with the final £5 million
cash receipt expected later this year.
We are deeply grateful for the support we have had in 2022 from our investors
and the Board. We expect 2023 to be a very active year, we believe we have a
fantastic group of management partners, and, as we found in the years
following the financial crisis, we believe it is in these types of investing
environments where our investment strategy comes to the fore.
Robert Ware, Chairman of Marwyn Value Investors Limited, commented:
"Despite the challenges of 2022, the Board acknowledges the Manager's
persistent efforts to identify and collaborate with leading Management
Partners, resulting in the appointment of Mark Hodges to MAC II and Waheed
Alli to 450 plc. Their extensive experience and deep sector knowledge equip
their respective acquisition vehicles with exceptional leadership and
expertise, allowing them to continue pursuing their stated investment
strategies.
The acquisition vehicles have exercised patience in identifying and executing
platform deals, evaluating a significant number of opportunities. With the
Fund maintaining its cash resources during these uncertain times, it is
well-positioned to support the acquisition vehicles as they progress with
their stated investment strategies throughout 2023 and beyond.
With the additional Management Partner appointments and considering the
current level of opportunities we are seeing across the sectors that are the
focus of our current acquisition vehicles' investment strategies, I believe
that with the support of the Manager and our cash resources, the Company is
well-positioned to capitalise on opportunities that will lay the groundwork
for robust portfolio performance in the coming years."
(1) For the ordinary shares, inception to date movement is based on the
combined weighted average NAV of Marwyn Value Investors I, II and B shares
prior to their amalgamation, using the conversion ratio published on 17 April
2008.
Total return assumes the reinvestment of dividends paid to shareholders into
the Company at NAV and is calculated on a cum-income basis.
(2) For the realisation shares, shareholder total return is calculated as the
movement in total shareholder value, including all distributions made to
realisation shareholders over the relevant period.
Capitalised terms used in the announcement and not otherwise defined have the
same meaning as detailed in the Company's Annual Report and Audited Financial
Statements for the year ended 31 December 2022.
Company enquiries:
Company Secretary - Aztec Financial Services (Jersey) Limited
Magdala Mullegadoo / Chris Copperwaite
Telephone: 01534 833000
Investor Relations - Kam Bansil
Telephone: 020 7039 1901
Corporate Broker:
Chris Clarke / Owen Matthews
Liberum Capital Limited
Telephone: 0203 100 2200
Marwyn Value Investors Limited is a closed-ended investment company, trading
on the London Stock Exchange Specialist Fund Segment - a fully regulated
market for professional, institutional and sophisticated investors. Current
investments through its underlying funds include AdvancedAdvT Limited, the
operating business of Le Chameau, 450 plc, Marwyn Acquisition Company II
Limited, Marwyn Acquisition Company III Limited, MAC Alpha Limited and Zegona
Communications plc.
Cautionary Statement
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"expects", "believes", "estimates", "envisages", "plans", "anticipates",
"targets", "aims", "continues", "expects", "intends", "hopes", "may", "will",
"would", "could" or "should" or, in each case, their negative or other
variations or comparable terminology. These forward-looking statements include
matters that are not facts. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events and
circumstances. A number of factors could cause actual results and developments
to differ materially from those expressed or implied by the forward-looking
statements. Forward-looking statements contained in this announcement based on
past trends or activities should not be taken as a representation that such
trends or activities will continue in the future. Subject to any requirement
under the Listing Rules, Prospectus Rules, the Disclosure Guidance and
Transparency Rules or other applicable legislation or regulation, the Company
does not undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. Investors should not place undue reliance on forward-looking
statements, which speak only as of the date of this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR UBOBRONUSUAR