NAV and Monthly Update – April 2022.
26/05/2022 07:00
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RNS Number : 8013M Honeycomb Investment Trust PLC 26 May 2022
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26 May 2022
Honeycomb Investment Trust plc
Honeycomb Investment Trust plc (the "Company" or "Honeycomb") announces that
the Investment Manager's monthly factsheet for 30 April 2022 is now available
on its website at http://www.honeycombplc.com
(http://www.honeycombplc.com/documents/) .
Net Asset Value per Share
The Company announces that its unaudited Net Asset Value ("NAV") per share as
at 30 April 2022 on a cum-income basis was 1,025.5 pence, based on a NAV of
£360.1 million, and on an ex-income basis was 1,018.2 pence, based on a NAV
of £357.6 million. The NAVs have been calculated by Apex Fund Services (UK)
Ltd.
Honeycomb delivered a NAV return of 0.64% for the month, which is equivalent
to 7.8% per annum. NAV return was driven by strong risk adjusted yield of
9.0%.
Net Investment Assets increased in the month to £592m, from £586m at the end
of March, as two full redemptions were redeployed into existing structured
facilities. These were well diversified across the Manager's core sub-sectors.
In addition the pipeline of opportunities remains strong with c.£400m of well
progressed transactions and the broader European pipeline standing at over
£1bn. This gives us confidence that the Company will continue to remain
highly invested.
There are a number of macroeconomic risks and concerns in the market currently
with the potential impact of inflation and the resulting squeeze on consumers
and businesses the most immediate threat. We are watching the performance of
the underlying assets very closely and we are seeing very consistent and good
performance. We have also seen our borrowers take proactive action for the new
customer originations where additional non-discretionary spending and costs is
factored into the underwriting decision when calculating debt service
capability. As ever we are in constant dialogue with all our lending partners
to ensure we are receiving regular updates and underlying live performance
data to enable us to be both forward looking and proactive. We are also
factoring in the impact of higher prices when underwriting and structuring new
opportunities.
Further, our credit facilities benefit from significant levels of
overcollateralization and are structured to withstand significant levels of
deterioration in collateral value before being at risk of loss of interest or
capital. Worth noting that higher inflation also has positive, de-risking
effects if it translates to higher wages for consumers and higher asset prices
that form part of our security (e.g. higher house prices and car prices
increase the value of our collateral for the same level of debt outstanding,
therefore de-risking our position).
We believe the combination of asset backing via large diverse pools of
financial and hard assets along with bespoke structuring means our asset
backed credit strategy is well positioned to perform through a more uncertain
and volatile macro environment.
For further information about this announcement please contact:
Pollen Street Capital - Investment Manager
Matthew Potter / Julian Dale: +44 (0)20 3728 6750
Liberum Capital Limited - Joint Broker
Chris Clarke: +44 (0)20 3100 2000
Cenkos Securities plc - Joint Broker
Justin Zawoda-Martin: +44 (0)20 7397 8900
Link Company Matters Limited - Corporate Secretary
hitcosec@linkgroup.co.uk (mailto:hitcosec@linkgroup.co.uk)
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