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13/09/2022 12:00

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RNS Number : 2971Z  UIL Limited  13 September 2022

13 September 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 was up 8.5% for the month, outperforming the FTSE All
Share total return Index which declined by 1.7% over the same period.

 

Global equity markets were mixed during August, with developed markets broadly
retreating whilst some emerging markets delivered robust performances. The US
Federal Reserve reiterated its hawkish stance on interest rate increases,
notwithstanding evidence that inflation is starting to peak with CPI easing to
8.5% for the year to July, down from 9.1% in June. The S&P Index fell 4.2%
in August while the US Dollar DXY Index strengthened to its highest level in
two decades.

 

In Australia the ASX 200 Index firmed slightly, up 0.6%, with the Reserve Bank
of Australia revising down its projections for growth for 2022 following its
fifth consecutive month of interest rate increases. The rate rises and cost of
living pressures are starting to hit the property market which is showing
early signs of slowdown. Europe and the UK are under significant strain as the
impact of high energy costs and the need to bolster gas reserves ahead of the
winter filters through their respective economies. The Eurostoxx Index fell
5.1% and the FTSE 100 declined by 1.9% in August.

 

Sterling depreciated against almost every major currency in August on
political uncertainty over a new Conservative leader and concerns over the
rapidly widening current account deficit on higher energy costs. Sterling fell
4.4% against the US Dollar, 3.0% versus the Euro, 2.7% against the Australian
Dollar, and 4.7% against the Brazilian Real.

 

Commodities were mostly weaker, with the Brent Crude oil price continuing to
fall from recent highs, ending August at USD 96.49, a drop of 12.3% over the
month. Copper also declined by 1.5% and gold was down 3.1%, ending the month
at USD 1,711.04/oz.

 

PORTFOLIO

There were two changes to the top ten constituents in August with Starpharma
reclaiming is position from Carebook Technologies, and The Market Herald
("TMH") replacing Assetco. TMH is a high growth, data-led, Australian-listed
diversified media, e-commerce and financial services platform. In its
financial year to 30 June 2022, it delivered revenue growth of 21% and cash
receipts from customers increased by 28%. TMH's share price was up 15.0% in
August.

 

Somers' valuation fell by 23.4%, almost entirely due to the payment of a USD
4.55 per share capital dividend during the month. Somers' shareholders voted
in favour of the offer by SNB Investments (of which UIL is a major
shareholder) at the Special General Meeting on 20 August 2022 and the merger
with SNB Investments Limited has now completed.

 

There was a 4.9% decrease in Resimac's share price, notwithstanding robust
results in its financials to 30 June 2022, which saw record home loan
settlements at AUD 6.3bn, its home loan portfolio up 11.0% to AUD 15.0bn, and
a 25.0% increase in dividends per share.

 

UIL's resources investments performed strongly in August, with Zeta's share
price up 11.3%, Panoramic Resources was up 15.8% and Resolute Mining was up
3.6%. Panoramic Resources announced strong results from the underground
drilling at its Savannah Nickel Project in Western Australia, indicating
significantly thicker mineralisation intercepts than had been predicted by the
resource model. Resolute Mining released its interim results for the six
months to 30 June 2022 showing a healthier balance sheet with net debt reduced
by 20% on 31 December 2021, and reiterated guidance for the full year to 31
December 2022.

 

Of the remaining top ten positions, the most notable performance was UEM, with
its share price up 6.8% over the month. UEM's NAV increased by 6.5%,
outperforming the MSCI Emerging Markets total return Index which was up 5.1%
in Sterling terms for the period.

 

Purchases during the month for the portfolio totalled £50.9m and realisations
amounted to £57.2m, reflecting the purchase of listed holdings by UIL from
its underlying platforms.

 

DEBT

In August the bank debt position was reduced by AUD 8.7m to AUD24.8m, with the
Euro and US Dollar balances unchanged at EUR 10.4m and USD 26.3m respectively.
The total bank debt liability in Sterling terms reduced from £49.6m at the
end of July to £46.3m as at 31 August 2022.

 

For August, the foreign exchange hedge positions were unchanged at AUD 52.1m,
CAD 27.5m and EUR 9.0m.

 

ZDP SHARES

The share price of the 2022 ZDP shares was unchanged at 144.00p whilst the
share price of the 2024 ZDP shares was up slightly by 0.8% to 124.00p. The
share prices of the 2026 and 2028 ZDP shares were down 0.4% and 1.0% to
114.00p and 96.00p respectively.

 

UIL is finalising arrangements for the redemption of the 2022 ZDP shares on 31
October 2022. Consistent with previous years, UIL will make an announcement in
mid-October regarding the mechanics of redemption.

 

OTHER

UIL's ordinary share price increased by 6.8% to 195.50p. The discount to NAV
widened marginally to 31.4% as at 31 August 2022.

 

UIL declared its fourth quarterly interim dividend of 2.00p per ordinary share
in respect of the year ended 30 June 2022, which will be paid on 30 September
2022 to shareholders on the register on 2 September 2022.

 

 

Name of contact and telephone number for enquiries:

 

Charles Jillings

ICM Investment Management
Limited
+44(0)1372 271486

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