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13/07/2022 16:45

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RNS Number : 3954S  UIL Limited  13 July 2022

13 July 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 gross assets declined by 10.5% in June. Due to the geared nature of the
portfolio, this resulted in a NAV total return decrease of 17.5% for the
month, underperforming the FTSE All Share total return Index which was down by
6.0% over the same period.

 

For the year to 30 June 2022, the NAV total return was -38.2%. This compares
to the 1.6% total return of the FTSE All Share total return Index.

 

Global equity markets, with the exception of China, weakened considerably in
June. Principally this was in response to the Federal Reserve's larger than
previously signalled 75bps rate increase, triggered by an 8.6% y-o-y rise in
US consumer prices in May. Recessionary fears intensified and commodity prices
softened in the second half of the month, which if sustained may give some
inflationary relief. The US Dollar continued to strengthen. China's market
reacted positively to the easing of some Covid lockdown restrictions although
its Zero Covid policy remains very much in place.

 

Central banks around the world increased rates. In addition to the 75bps rise
in the US, the Bank of Canada and Reserve Bank of Australia both increased
rates by 50bps, the Bank of England raised rates by 25bps and the European
Central Bank signalled its intention to increase rates by 25bps at its July
meeting.

 

Most markets were weak, with the 6.7% gain in the Shanghai Composite and the
2.1% gain in the Hang Seng Index notable exceptions.  The S&P500 declined
by 8.4% in June, the NASDAQ composite declined by 8.7% and the FTSE 100 was
down by 5.8%. The Eurostoxx Index fell by 8.8%, the German DAX by 11.2% and
the Italian MIB by 13.1%. The Australian ASX-200 fell by 8.9%.

 

Sterling was weaker against many currencies during the month, falling 3.6%
against the US Dollar, 1.3% against the Euro and 1.7% against the Canadian
Dollar. However, the Australian and New Zealand Dollars were even weaker,
declining in value by 0.5% and 0.9% against Sterling respectively during June.

 

The Brent Crude oil price gave up some of May's gains, ending June at USD
114.81, a decline of 6.5% for the month. The price of copper declined by 13.5%
in June. Gold declined by 1.6% to end the month at USD 1,807.27/oz.

 

PORTFOLIO

There was one change to the top ten constituents in June with Resimac Group
replacing Nautilus Data Technologies, which has been sold to Allectus Capital.
Resimac is an Australian non-bank residential mortgage and asset finance
lender and is the largest holding in Somers. UIL acquired shares in Resimac
from Somers in the month.

 

Somers' valuation declined by 16.3%, primarily due to a 22.8% decline in
Resimac's share price, its largest holding. Zeta's share price declined by
14.3% during the month. UEM's NAV decreased by 5.8% (dividend adjusted) and
its share price declined by 6.3% (dividend adjusted). Resolute Mining's share
price declined by 18.2%, Panaromic Resources' share price was 32.8% lower,
Assetco's share price was down by 12.0% and Starpharma's share price was down
5.6% for the month of June.

 

Somers announced on 8 July 2022 that its board of Directors was recommending
the offer by SNB Investments (of which UIL is a major shareholder) to acquire
all of the Somers' shares that the SNB shareholders do not own. There is a
Somers Special General Meeting to be held on 20 July 2022 for shareholders to
vote on the offer. If approved, Somers' shareholders (excluding those shares
owned by SNB) will receive USD 21.00 per share in the form of a two-year loan
note with an interest rate of 6.0%. Completion is anticipated on 26 July 2022.

 

Purchases during the month for the portfolio totalled £24.0m and realisations
amounted to £32.5m.

 

DEBT

The bank debt positions were reduced in underlying foreign currency terms in
June with the facility drawn as AUD 33.5m, USD 28.0m and EUR 10.4m with the
liability in Sterling terms reducing from £51.9m at the end of May to £51.1m
as at 30 June 2022.

 

The foreign exchange hedge positions were reduced during June to AUD 52.1m,
CAD 44.3m and USD 34.4m. The EUR 9.0m hedge was unchanged and the Australian
Dollar hedge against US Dollar was also unchanged at USD 10.0m.

 

OTHER

UIL's ordinary share price decreased by 12.8% to 187.50p. The discount to NAV
narrowed to 28.1% as at 30 June 2022.

 

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

 

UIL declared a third quarterly interim dividend of 2.00p per ordinary share in
respect of the year ended 30 June 2022 which was 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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