REG - Marwyn Value Inv Ltd - Unaudited Interim Results 2023

Marwyn Value InvestorsAnnouncement

28/09/2023 07:00

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RNS Number : 8820N  Marwyn Value Investors Limited  28 September 2023

LEI: 213800L5751QTTVEA774

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28 September 2023

 

MARWYN VALUE INVESTORS LIMITED (THE "COMPANY")

 

Unaudited Interim Results 2023

 

Marwyn Value Investors Limited announces the publication of its interim
results for the six months ended 30 June 2023.

 

The Interim Results are available on the 'Annual Reports and Interim Results'
section of the Company's website,
http://www.marwynvalue.com/company-information/financial-reports
(http://www.marwynvalue.com/company-information/financial-reports) .

 

 

SUMMARY PERFORMANCE

 

Ordinary Shares

                                                    NAV Total Return(1)  FTSE All-Share
 Six months to 30 June 2023                         (2.7)%               2.6%
 Since inception(3) (1 March 2006 to 30 June 2023)  175.3%               156.4%

 

Net assets of £93.0 million, a decrease of £5.1 million since 31 December
2022, with £2.5 million paid out in dividends

·   NAV per share of 167.5p as at 30 June 2023.

·   Total NAV return of (2.7)% since 31 December 2022.

·   Share price down 4.5p since 31 December 2022 to 90.5p as at 30 June
2023. The share price discount to NAV decreased to 46.0% as at 30 June 2023,
compared to 46.3% as at 31 December 2022.

Continued significant distributions

·   Quarterly dividends of 2.265p per share paid in February, May and
August 2023 with a further quarterly dividend of 2.265p expected to be paid in
November 2023 and each quarter of 2024. Total annual dividend of 9.06p per
share represents a yield of over 10% (based on share price of 90.5p as at 30
June 2023).

Strong cash position

·   Look-through cash balance of £32.0m at 30 June 2023 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
 Six months to 30 June 2023                                        (9.3)%                       2.6%
 Since inception(3) (1 March 2006 to 30 June 2023)                 196.4%                       156.4%
 Since creation of class(4) (30 November 2016 to 30 June 2023)(3)  1.9%                         40.8%

 

Net assets of £3.2 million, a decrease of £0.3 million since 31 December
2022

·   NAV per share of 341.0p as at 30 June 2023.

·   Total shareholder return of (9.3)% since 31 December 2022.

·   Over £1 million to be distributed in October 2023

 

2021 Realisation Shares

                                                           Shareholder Total Return(2)  FTSE All-Share
 Six months to 30 June 2023                                (2.8)%                       2.6%
 Since inception(3) (1 March 2006 to 30 June 2023)         173.5%                       156.4%
 Since inception(4) (30 November 2021 to 30 June 2023)(3)  1.3%                         7.8%

 

Net assets of £649 thousand, a decrease of £19 thousand since 31 December
2022

·   NAV per share of 180.1p as at 30 June 2023.

·   Total shareholder return of (2.8)% since 31 December 2022.

 

Manager's Review

We have maintained a cautious stance towards the markets and company
valuations in recent years, a strategy that seems increasingly justified given
the prevalent speculation and a somewhat unrealistic expectation regarding a
return to ultra-low interest rates. We perceive the burgeoning sovereign debt
issue and a contracting money supply as significant forces that will
necessitate a recalibration of market expectations and valuations. We are
beginning to observe early signs of these necessary adjustments taking place.

AdvancedAdvT has remained focused on its disciplined acquisition strategy
since its £130 million capital raise in March 2021 under the highly capable
leadership of Vin Murria. During the period, AdvancedAdvT successfully
acquired a group of five software businesses from Capita at what we believe is
a highly attractive valuation. With a substantial war chest still remaining
following these acquisitions, AdvancedAdvT is now poised to explore
synergistic acquisition opportunities and we see significant scope for value
creation.

In May 2023, we initiated a promising venture with Palmer Street Limited,
investing £8 million. Leveraging the expertise of its senior management team,
formerly of Sanne plc - a distinguished FTSE 250 company acquired by Apex
group in 2022 - Palmer Street is poised to carve out a unique business
proposition in the private capital servicing sector. Partnering with Marwyn
demonstrates the attractiveness of our team and strategy, paving the way for
potential rapid growth and a significant enhancement in our investment and NAV
appreciation starting from early 2024.

Le Chameau, with the strategic addition of Waheed Alli to the management and a
further investment of £5 million from the Marwyn Funds, is gearing up for
major milestones leading up to its centenary in 2027. The combination of the
additional investment, providing the company with both increased working
capital and growth capital to support the next phase of its development
including expansion of digital and marketing functions alongside investment in
brand and tech capabilities and the joint expertise brought by Waheed and the
CEO, Corry Cavell-Taylor, forms a robust foundation for brand expansion in the
coming years.

Marwyn Acquisition Company II (MAC II) has significantly benefited from the
new CEO, Will Self, partnering with Chairman Mark Hodges. This collaboration
has accelerated MAC II's strategic focus on financial services and
intergenerational wealth.

We are also actively exploring opportunities in the media and entertainment
space through 450 plc and are engaging with potential partners to enhance the
prospects of Marwyn Acquisition Company III and MAC Alpha.

As we navigate through these volatile market conditions, our unwavering
commitment to our investment strategy, as detailed in the Company's annual
report and accounts, holds us in good stead. We firmly believe that our
approach is attuned to the current market dynamics and economic environment.
We extend our heartfelt gratitude for your sustained support and look forward
to seizing promising opportunities that lie ahead.

James Corsellis, Chief Investment Officer, Marwyn Investment Management LLP

Robert Ware, Chairman of Marwyn Value Investors Limited, commented:

"Despite a challenging global market landscape, we are optimistic about the
prospects that lie ahead. Our portfolio is exceptionally poised to capitalise
on forthcoming opportunities, and we eagerly anticipate witnessing the growth
and evolution of our portfolio companies. We are immensely grateful for your
continued trust and investment in Marwyn Value Investors Limited."

 

(1) NAV Total Return assumes the reinvestment of dividends paid to
shareholders into the Company at NAV.

(2) Shareholder Total Return is calculated as the movement in total
shareholder value, including all distributions made to realisation
shareholders over the relevant period.

(3) For the ordinary shares, Inception to date NAV Performance 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. Realisation class inception to date is calculated based on the ordinary
share performance up to the date the ordinary shares were converted to the
relevant realisation class, then shareholder total return of the relevant
realisation class from that date.

(4) Realisation class shareholder total return from creation of class
represents total shareholder return for the relevant class from the date that
ordinary shares were converted to realisation shares for each class.

 

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:

Aztec Financial Services (Jersey) Limited

Chris Copperwaite / Magdala Mullegadoo

Telephone: 01534 833000

 

Investor Relations

Kam Bansil

Telephone: 020 7039 1901

 

PR Adviser - FGS Global

Rollo Head 07768 994987

Chris Sibbald 07855 95553

 

Corporate Broker - Liberum Capital Limited

Chris Clarke / Owen Matthews

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, Palmer Street Limited, Marwyn Acquisition Company III Limited, MAC
Alpha Limited and Zegona Communications plc.

 

Shares in the Company are not designed or intended for retail investors.
Marwyn Investment Management LLP, the Manager, does not promote shares in the
Company to retail investors and they should not be offered to retail
investors.

 

Cautionary Statement

This announcement contains forward-looking statements which are made in good
faith based on the information available at the time of its approval. Such
forward-looking statements involve known and unknown risks, uncertainties and
other important factors beyond the Company's control that could cause the
actual results, performance.

 

Neither the content of the Company's website (or any other website) nor the
content of any website accessible from hyperlinks on the Company's website (or
any other website) is incorporated into, or forms part of, this announcement.

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