LONDON (Alliance News) - Trinity Capital PLC Monday said it plans to return GBP2.1 million to its shareholders next month as it published its full year results and revealed a wider loss and a fall in net asset value.
The real estate investment company said it would fund the distribution, equal to 1.0 pence per share, from the distributable reserve created by the cancellation of the share premium account that took place shortly after the company was admitted to AIM in 2006.
The distribution will be paid on September 23 to shareholders on the company's shareholder register on September 2, with shares being marked ex on the first day of next month.
Trinity Capital said it has conducted a detailed review of each of the company's three remaining assets, the prospects for generating further cash in the foreseeable future, the scope to reduce operating costs and the potential demands on existing cash balances held.
As a result, the company said its net asset value has declined and at the end of the March stood at GBP11.6 million from GBP17.3 million, equal to 5.5 pence per share from 8.2 pence at the end of September 2015. At the end of March 2015, the net asset value stood at GBP18.6 million, or 8.8 pence per share.
Trinity Capital said it plans to continue reducing operating costs "in the coming months" as it posted a GBP8.5 million pretax loss in the financial year, widening from the GBP5.3 million loss in the previous year.
The driver was a GBP7.8 million charge from the movement in valuations of its assets compared to a GBP7.9 million gain last year that pushed it to a net investment loss of GBP7.8 million compared to the GBP4.5 million loss last year.
"Despite our continuing efforts, I am disappointed to report that there have been no material developments with regard to our negotiations with our Indian promoter-partners, the settlement of our disputes with the funds managed by SachsenFonds (and their partner, Deutsche Fonds Holding) or the various legal processes underway in Mauritius," said Trinity Capital.
"It is in the context of these impasses and the projected shape that an eventual resolution might take that we have reviewed Trinity's projected cash flow requirements and operating costs and concluded that the proposed distribution is appropriate," it added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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