LONDON (Alliance News) - Investment group Better Capital PCC Ltd on Thursday said the performance of its two funds diverged in the year to the end of March, with its 2009 fund delivering strong returns but its 2012 fund declining.
For the 2009 Cell, Better Capital said it raised a total of GBP210.0 million in capital in the financial year and invested a net GBP203.8 million. The net asset value of the fund at the end of March was GBP241.3 million, with a net asset value total return for the year of 18%.
But the 2012 Cell swung the other way, delivering a net asset value total decline of 29% over the year, with its net asset value at GBP247.6 million at the end of the financial year. The company raised GBP355.5 million in capital for the 2012 fund and invested GBP347.4 million of net proceeds.
The 2009 fund's gains were driven primarily by a good performance for machined-and-fabricated-parts manufacturer Gardner Aerospace. Better Capital also was able to make a distribution to shareholders during the financial year following the sale of Santia, a health and safety and accreditation services provider.
Better Capital made GBP66.9 million in distributions to shareholders from the 2009 fund over the course of the year, split into four tranches.
NAV per share for 2009 Cell on March 31 was 116.73 pence, or 146.53p when including distributions, versus a share price of 81.00p.
But the 2012 Cell suffered due to writedowns booked on the value of the company's investments in UK-based home-improvement products manufacturer Everest, office products company SPOT, metallic components maker CAV Aerospace, and fashion retailer Jaeger.
In terms of distributions, Better Capital is focusing any excess liquidity generated by the 2012 Cell to purchase back shares.
NAV per share for 2012 Cell on March 31 was 71.43p, or 73.18p when including distributions, versus a share price of 31.50p.
Better Capital said a good outcome in the current financial year for the 2009 fund will be heavily-based on the performance of Gardner. It added while the weakness in the 2012 fund was "disappointing", signs have emerged of an improvement in the fortunes of the fund's holdings.
Better Capital PCC shares were up 2.5% to 94.00 pence Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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