SVI21 Apr 2011 09:21
SVG Capital off to flying start
Date: Thursday 21 Apr 2011
LONDON (ShareCast) - A sharp improvement in the share price of its biggest investment, Hugo Boss, contributed to a strong increase in the net asset value (NAV) of investment firm SVG Capital in the first quarter.
Adjusted NAV at the end of March stood at £1,108m, an 11% increase on the year-end value, which stood at just below £1bn. NAV per share was 350.6p on a fully diluted basis.
The investment value of its Hugo Boss stake rose £41.8m in the quarter to £206.6m, reflecting an increase in expected earnings as the company continues to benefit from a recovery in the markets in which it operates as well as an increase in the multiple applied in the valuation.
The firm's second biggest holding, Galaxy Entertainment, was also buoyant, with the value of the stake rising £28.5m to £139.8m, driven by continued improvements in trading. The new Galaxy Macau resort, the group's Asian-themed integrated casino, hotel and leisure resort is scheduled to open on 15 May 2011, the company noted.
SVG Capital paid cash calls of £3.0m and received distributions of £37.5m in the period. Total distributions included £10.4m in relation to the sale of one warehoused fund asset, which was agreed prior to the year-end, but did not complete until January 2011.
At 31 March 2011, the group had cash balances of £9.5m and borrowings of £290.3m, taking the group's net borrowed position to £280.8m, or 26.6% of adjusted shareholders' funds.