Dunedin Ent.it. Regulatory News (DNE)

Quarterly Update Report

Dunedin Enterprise Investment Trust PLC (Company No SC52844) - Quarterly Update

1. Unaudited net asset value per share

The unaudited net asset value per share at 31 March 2018 was 451.9p. This represents a total return per share of 2.6% during the quarter when compared to the net asset value per share of 489.2p as at 31 December 2017 and taking account of the 50p per ordinary share returned to shareholders in February 2018. The net asset value per share of 451.9p is stated before the final dividend of 5.5p per share which is payable on 17 May 2018 following the AGM.

2. Share price

The share price has decreased by from 396.5p to 370p in the quarter to 31 March 2018. The share price total return for the quarter to 31 March 2018 was 5.9%. This compares to a decrease in the FTSE Small Cap Index of 6.5% over the same period. The discount to net asset value at 31 March 2018 was 18.1%. 

3. Balance Sheet

The unaudited balance sheet as at 31 March 2018 is noted below: -

4. Net asset value movements

The portfolio of investments has been re-valued at 31 March 2018. The increase in net asset value in the quarter can be attributed to:-

· Within the Dunedin managed portfolio there were valuation increases at Red (£1.2m), Realza (£0.9m), Pyroguard (£0.8m), Steeper (£0.7m), FRA (£0.5m) and Hawksford (£0.4m). The valuations of Red, Pyroguard and FRA have benefitted from an increase in maintainable earnings. The valuation uplift in Steeper represents deferred proceeds received in February and April. Hawksford has benefitted from a reduction in net debt.

· These valuation increases have been offset by a reduction in the valuation of CitySprint (£0.9m). CitySprint continues to experience margin pressure in a competitive market.

5. Cash and Commitments

Dunedin Enterprise had cash and near cash balances of £22.8m at 31 March 2018.

Dunedin Enterprise has outstanding capital commitments to limited partnership funds following the recent realisations from Dunedin Buyout Fund III LP which are £43.2m. It is expected that £22m of the total outstanding commitments will ultimately be drawn over the remaining life of the funds.

6. Dividend

If approved by shareholders at the Annual General Meeting on 10 May 2018 a final dividend of 5.5p per share will be paid to shareholders on 17 May 2018.

7. Outlook

The Board remains committed to the aim of maximising shareholder value through the orderly wind-down process. This will be achieved either by the judicious and timely sales of fund interests on the secondary market or by continuing to hold these interests if this is likely to provide a better return to shareholders.

The Board remains encouraged by the pricing of realisations achieved during 2017 and the trading performance of the portfolio.

For further information on Dunedin Enterprise please go to www.dunedinenterprise.com