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Chenavari Capital Solutions Net Asset Value Declines In Full Year

LONDON (Alliance News) - Chenavari Capital Solutions Ltd on Thursday warned on Brexit ...

Alliance News 24 January, 2019 | 12:00PM
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LONDON (Alliance News) - Chenavari Capital Solutions Ltd on Thursday warned on Brexit uncertainties as its net asset value fell by 3.8% in its most recently ended financial year.

The investment company said NAV per share declined to 89.37 pence in the year to the end of September 2018 from 92.91p reported the year prior.

"This is primarily as a result of dividends exceeding the return on assets in the year together with higher levels of cash held in the portfolio pending return of capital to investors," explained Non-Executive Chair Rob King.

Chenavari Capital's share price at September 30, 2018, stood at 78.5p, representing a 12% discount to NAV.

The stock was untraded on Thursday, last closing at 76.50p a share.

At September 30, 2018, the company was 82% invested in nine positions including seven primary transactions valued at GBP34.5 million and two secondary transactions valued at GBP11.5 million.

Chenavari Capital declared a 4.00p per share dividend for the year, down from 6.75p paid the year before.

"One of the challenges facing the company in the coming months as it is for most of the European investment sector is the final outcome of Brexit, where confusion has left many managers and investors uncertain as to the impact on their particular asset group," said King.

"We sense that for our particular assets there should be less impact and hence we would still anticipate obtaining acceptable realisation valuations," added King.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Chenavari Capital Solutions 75.50 GBX -0.66

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