LONDON (Alliance News) - Chenavari Capital Solutions Ltd Thursday said results for the period from October 1 to March 31 showed that the company net asset value increased by 2.45% with dividends reinvested.
The company paid dividends of 1.35p for the period. It announced a further dividend payment of 1.20p on April 21.
"Based on the current portfolio and market conditions as at the date of this report, the company expects to pay quarterly dividends of at least 2 pence per share, for at least the next two quarters. Further guidance of future payments will be given from time to time," Acting Chairman Iain Stokes said in a statement.
Net profit for the period between the start of October and the end of March was GBP3.1 million, compared with GBP3.8 million in the prior year.
Stokes said the flow of deals in the first quarter of 2015 "has not disappointed and an attractive pipeline has formed for the remainder of the year".
"Whilst we anticipate high demand from aggressive new players in the sector, we remain positive of our ability to source new investments that will deliver the target returns for the company," Stokes said.
The results came one day after the company cut its target for returns due to "a widespread reduction in the returns available from the credit asset class since it was launched".
It now expects to target a NAV total net return to investors of 8-10% per annum, having previously targeted a net total return on invested capital of 12% per annum or more over the life of the company.
From launch in October 2013 to March 31, the company's NAV performance, net of issue costs and dividends reinvested, was 6.55%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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