Last checked at 
16 Nov 2018 07:00
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 30 September 2018 was 454.3p. This represents a total return per share of 1.5% during the quarter when compared to the net asset value per share of 447.6p as at 30 June 2018. The net asset value per share of 454.3p is stated before the B Share issue and redemption on 9 October 2018 which returned 50p per ordinary share to shareholders. The net asset value per share following the B Share issue and redemption is 404.3p.
2. Share price
The share price has decreased from 386p to 371.2p in the quarter to 30 September 2018. The share price total return for the quarter to 30 September 2018 was -3.8%. This compares to a decrease in the FTSE Small Cap Index of 2.9% over the same period. The discount to net asset value at 30 September 2018 was 18.3%.
3. Balance Sheet
The unaudited balance sheet as at 30 September 2018 is noted below: -
£'m | |
Investments:- | |
Dunedin managed | 60.7 |
Third party managed | 10.0 |
70.7 | |
Cash and near cash | 24.2 |
Other assets and liabilities | (1.1) |
Total net assets | 93.8 |
Net asset value per share (p) | 454.3p |
4. Net asset value movements
The portfolio of investments has been re-valued at 30 September 2018. The increase in net asset value in the quarter can be attributed to:-
· Within the Dunedin managed portfolio there were valuation increases at CitySprint (£1.2m), Hawksford (£0.5m) and FRA (£0.4m). Each of these portfolio companies has benefitted from an increase in maintainable earnings.
· These valuation increases have been offset by a reduction in the valuation of Red (£0.5m) and EV (£0.3m). Debt levels within Red have increased following an expansion of the Contract Division. The valuation of debt within EV (denominated in US $) has been impacted by adverse exchange rate movements.
5. Cash and Commitments
Dunedin Enterprise had cash and near cash balances of £24.2m at 30 September 2018. This was reduced to £13.9m following the B Share issue and redemption on 9 October 2018.
Dunedin Enterprise has outstanding capital commitments to limited partnership funds of £33.9m. It is expected that £20m of the total outstanding commitments will ultimately be drawn over the remaining life of the funds.
Dunedin Enterprise has a revolving credit facility with Lloyds Bank of £10m which was undrawn at 30 September 2018 and is available until 31 May 2019.
6. B Share
A third B Share issue was undertaken following the realisation of Pyroguard whereby £10.3m of capital was returned to shareholders. B Shares of 50p each were paid up from capital and issued to all shareholders by way of a bonus issue pro-rata to their holding of Ordinary Shares on the basis of one B Share for every one Ordinary Share held at the record date of 6.00pm on 8 October 2018. The B Shares were issued on 9 October 2018 and immediately redeemed at 50p per B Share. The proceeds from the redemption of the B Shares were sent to shareholders on 23 October 2018.
7. Outlook
The Board remains committed to the aim of maximising shareholder value through the orderly wind-down process. This will be achieved 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.
For further information on Dunedin Enterprise please go to www.dunedinenterprise.com