Graphite Enterprise Under-Performs, Considering Share Buy-Back

LONDON (Alliance News) - Graphite Enterprise Trust PLC Wednesday said its net asset value and share price underperformed in the last financial year but emphasised it has outperformed its benchmark in the medium to long-term as it said it is considering launching a share buy-back programme to reduce its cash balance.

The private equity investment trust said its net asset value per share, including the dividend, rose by 5% in the year ended January 31, to 695.00 pence per share. In comparison, the trust's benchmark, the FTSE All-Share Index rose by 7.1% in the same period, but the trust said it has outperformed its benchmark in the medium to long term.

The trust said it will maintain the "record dividend" offered in 2013 of 15.5 pence per share.

Graphite Enterprise said its share price has also outperformed the FTSE All-Share Index consistently over the last five years. During the period, its share price rose by 4.6% to 575.00 pence per share, more than double what it was five years ago.

On Wednesday morning, Graphite Enterprise shares were up 1.0% to 585.38 pence per share.

Graphite also said it is considering launching a share buy-back programme to help reduce its cash balance after realisations and new investments led to its portfolio generating 20% more cash year-on-year to GBP142 million in the period, of which GBP125 million was reinvested, it said.

"As a result cash is higher than anticipated and we are considering a programme of share buy-backs to help reduce the balance," it said.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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