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16/06/2022 11:00

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RNS Number : 1505P  UIL Limited  16 June 2022

16 June 2022

 

UIL LIMITED

(LEI Number: 213800CTZ7TEIE7YM468)

 

Publication of monthly factsheet

 

The latest monthly factsheet for UIL Limited ("UIL" or the "Company") will
shortly be available through the Company's website at:

https://www.uil.limited/investor-relations/factsheet-archive
(https://www.uil.limited/investor-relations/factsheet-archive)

 

Monthly commentary

 

PERFORMANCE

UIL's NAV total return decreased by 11.3% in May, underperforming the FTSE All
Share total return Index which was up by 0.7% over the month.

 

Markets in May remained volatile as inflationary pressures weighed on
consumers and enterprises globally. Central banks continued to raise rates and
to signal further increases. The risk of developed economies slipping into
recession has increased. Lockdowns in key Chinese cities continued whilst much
of the rest of the World continued to ease restrictions. Markets rallied
towards the end of the month on speculation that central banks may not
increase rates as fast or as far as expected. Given the current macro
headwinds, this optimism may prove to be short lived.

 

The Federal Reserve raised rates from 0.5% to 1.0% in May and signalled
further rises of a similar magnitude would "likely be appropriate at the next
couple of meetings". The Bank of England increased rates by 25bps to 1.0%. The
Reserve Bank of Australia raised rates for the first time since November 2010
to 0.35%, a 25bps rise. The European Central Bank has signalled that it plans
to increase rates in July.

 

Markets remained volatile although the month end rally resulted in many
markets posting a positive return for the month. The S&P 500 and Dow Jones
Industrial Average were virtually unchanged for the month, whilst the NASDAQ
Composite declined by 2.2%. The FTSE 100 was up 0.8% and the German DAX Index
advanced by 2.1%. The ASX 200 in Australia was however down by 3.0% in May and
the Eurostoxx declined by 0.4%.

 

Sterling strengthened against the US Dollar in May by 0.4% but fell 1.1%
against the Euro. Emerging markets' currencies were also mixed with the Indian
Rupee weaker by 1.9% against Sterling despite a surprise rate increase. The
Brazilian Real strengthened by 4.1% against Sterling after a 100bps increase
in the SELIC rate.

 

The Brent Crude oil price continued to rise, up 12.3% in May, on the back of
ongoing concerns around energy supplies due to the geopolitical issues with
Russia, whilst industrial metal prices such as copper fell by 2.3% during the
month, prompted by slower economic growth expectations and the continuing
Covid-19 lockdowns in China. The price of gold declined by 3.1% to
1,837.35/oz.

 

PORTFOLIO

There was one change to the top ten constituents in May with Panoramic
Resources replacing Orbital. Panoramic Resources is a Western Australian base
metal mining company, currently focused on extracting nickel sulphide. UIL's
stake in Panoramic was purchased off-market from Zeta Resources.

 

Somers' valuation declined by 8.2%, primarily due to a 7.7% decline in
Resimac's share price, its largest holding. Zeta's NAV declined by 9.3% during
the month with its share price down by 10.5%. UEM's NAV increased by 0.6% but
its share price declined by 0.9%. Resolute Mining's share price declined by
21.4%, Assetco's share price was down by 30.3% and Starpharma's share price
was down 14.8% for the month of May.

 

The majority shareholders in Somers, including UIL have made an offer to
acquire all of Somers' issued shares at a value of USD 21.00 per share. The
consideration would be payable in the form of a two-year loan note to be
listed on the Bermuda Stock Exchange with an annual interest rate of 6.0%.

 

Purchases during the month for the portfolio totalled £15.9m and realisations
amounted to £16.7m.

 

DEBT

The bank debt positions were unchanged in underlying foreign currency terms in
May, though foreign exchange movements resulted in the overall liability
increasing marginally to £51.9m from £51.8m. The facility was drawn as AUD
34.1m, USD 29.7m and EUR 10.6m.

 

Foreign exchange hedge positions as at the end of May against Sterling were
unchanged at AUD 64.6m, CAD 61.8m, USD 61.3m and EUR 9.0m. The Australian
Dollar hedge against US Dollar was unchanged at AUD 10.0m.

 

OTHER

UIL's ordinary share price decreased by 9.7% to 215.00p. The discount to NAV
narrowed slightly to 32.4% as at 31 May 2022.

 

The share price of the 2022 ZDP shares increased by 0.3% and the 2024 ZDP
shares were unchanged. The share prices of the 2026 and 2028 ZDP shares
decreased by 0.4% and 0.5%, respectively.

 

UIL declared a third quarterly interim dividend of 2.00p per ordinary share in
respect of the year ending 30 June 2022, which will be paid on 30 June 2022 to
shareholders on the register on 6 June 2022.

 

 

Name of contact and telephone number for enquiries:

 

Charles Jillings

ICM Investment Management
Limited
+44(0)1372 271486

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