Trinity Capital Share Price (TRC)

big trade..............

NH -morning - a lot of water has passed under the bridge since last comments and TRC sp has been thrashed - any thoughts on a possible recovery to some degree here - i feel its low enough and 'positive' enough for a small punt. Been wrong before though lol

CONT The appeal lodged by the Immobilien funds against the July 2011 dismissal on jurisdictional grounds by the Supreme Court of Mauritius in favour of our Mauritian subsidiary, our former investment manager and its principals has yet to be heard. Since we issued our interim financial statements for the period ended 30 September 2011, there has been no progress in implementing the Immobilien funds' approval to negotiate with Trinity a settlement of the legal claims for an aggregate payment to the Immobilien funds of approximately £2.0 million. Where indicative offers have been received for our investments held jointly with the Immobilien funds, final agreement on terms remains uncertain. The structure and strategy of the Immobilien funds is opaque and SachsenFonds does not have an investment manager in India. The Board is committed to reduce operating costs where possible; administration and other costs for the year ended 31 March 2012 totalled £1,332,000 and for the previous year were £3,546,000. At 31 March 2012, Trinity held cash of £11.1 million. Further distributions will be made to shareholders as investments are sold and liabilities are reduced. The Board is appreciative of the service it receives from its key providers, Indiareit, IOMA, Kross-Border, and Arden Partners. Indiareit has delivered attractive realisation proposals and strategies with respect to all of our investments but, unfortunately, negotiations with SachsenFonds have been fruitless and attractive realisation opportunities blocked. When Indiareit was appointed in June 2010, nobody imagined that it would take more than three years to sell the investment portfolio and, as such, we will be reviewing the arrangements with them to ensure that interests and incentives continue to be appropriately aligned. The Board is appreciative of your continued support and we hope that the pace of realisation will pick up again in the current financial year. Yours faithfully Martin M Adams

CONT Trinity's share of the carrying value of the jointly-held investments in Lokhandwala and Luxor Cyber City have been written down from the 31 March 2011 values by 44% to £5.8 million and by 28% to £5.0 million respectively. Although we have received indicative offers, the realisation of these investments has stalled. SachsenFonds advised us that they obtained the approval of their investors to change the Luxor planning consents to that of a township. The change to township status would add significant value to the investment and allow an orderly exit if commercial terms can be agreed with a development partner, the promoters and SachsenFonds. There has been no material change with regard to the sale or development of our holding in Uppals IT Park "Tech Oasis" and, given the market conditions, we have written down the value of our holding by 30% to £12.8 million. We have held constant in Rupee terms the value of our investment in MK Malls, where again we have been unable to progress realisation because SachsenFonds' consent is required. The MK Malls valuation converted into a write-down by 12% to £7.8 million due to currency depreciation. Of the Company's investments where SachsenFonds is not involved, the value of our investments in Jodhana and Horizon has been broadly maintained at £4.4 million and £6.5 million respectively. Absent a corporate transaction, realisation of the Jodhana investment will result from project development cash flows. We have an option to sell the shares in Horizon in 2013. The value of our shareholding in DB Realty has fallen significantly over the past year, although it has recovered since our half year report was issued. The release of the promoters from custody has enabled them to return to manage the business. Although DB Realty owns some of the best development sites in Mumbai, including MK Malls, weak demand for property and limited availability of development finance imply that improvement in operating performance may take time. Since the end of the financial year, we have sold some of our shares in DB Realty in a very illiquid market and we are hopeful that as the market and company show signs of recovery buyers for larger blocks of the shares may emerge.

Dear Shareholder The pace of implementation of the realisation mandate of Trinity Capital plc ("Trinity" or the "Company") slowed during the financial year ended 31 March 2012. This has been caused principally by economic conditions in India. During the year, Trinity sold its holdings in Enigma, Kapstone and Rustomjee at close to carrying values, generating proceeds of £20.6 million. The Company distributed £22.1 million, or 10.5p per share, to investors, taking aggregate distributions over the past two financial years to £122.05 million, or 58.0p per share. The Company's net assets declined during the year ended 31 March 2012 by £40.8 million to £58.2 million or 27.6p per share, mainly resulting from the shareholder distributions and a reduction in the carrying values of the remaining investments. Investor sentiment in the Indian property and equity markets has been weak due mainly to the declining rate of economic growth, a deterioration in investor sentiment and a sharp depreciation of the value of the Rupee. The 12% depreciation of the Rupee against Sterling has been a significant contributing factor to the fall in all of the reported investment valuations. There is considerable uncertainty surrounding recent Indian Government policy announcements on taxation. Moves to retrospectively tax offshore capital gains where a company's principal underlying business is in India and wide discretionary powers in relation to anti-avoidance rules have had a marked negative impact on foreign investor sentiment towards the country. The effect of these tax developments on Trinity and its subsidiaries remains unclear. Domestic and international demand for property investments, especially the type of non-income producing development assets that we hold, has declined significantly. Four of our seven remaining investments, valued in aggregate at £38.9 million, are held jointly with Immobilien Development Indien I GmbH & Co. KG ("Immobilien I") and Immobilien Development Indien II GmbH & Co. KG ("Immobilien II"), (together the "Immobilien funds"), both of which are managed by SachsenFonds.

http://www.investegate.co.uk/Article.aspx?id=201207250700114227I