Dunedin Ent.it. Regulatory News (DNE)

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

Whilst there is no longer a requirement to publish an Interim Management Statement ("IMS") the Board of Dunedin Enterprise Investment Trust PLC ("Dunedin Enterprise") has decided to continue to provide an update on the net asset value of the Trust in a similar format as previously provided in the IMS on a quarterly basis. This net asset value update is as at 30 September 2015.

1. Unaudited net asset value per share

The unaudited net asset value per share at 30 September 2015 was 512.0p. This represents an increase of 1.3% from the level at 30 June 2015.

2. Share price

The share price has increased by 4.7% from 316p to 330.9p in the quarter to 30 September 2015. This compares to a decrease in the FTSE Small Cap Index of 2.4% over the same period. The discount to net asset value at 30 September 2015 was 35.4%.

3. Balance Sheet

The unaudited balance sheet as at 30 September 2015 is noted below:-

4. Net asset value movements

The portfolio of investments has been re-valued at 30 September 2015. The increase in net asset value in the quarter can be attributed to:-

· an increase in the value of Dunedin managed investments totalling £0.6m. There have been valuation uplifts at Hawksford (£1.3m) and CitySprint (£0.9m) both as a result of earnings growth and lower net external debt. The valuation of Blackrock (£0.8m) has been moved from cost to an earnings basis reflecting the strong trading performance of the company. These increases have been offset by a provision for carried interest payable on the Equity Harvest Fund (£1.3m) and a reduction in maintainable earnings at Pyroguard (£0.8m) due to production issues which are being addressed. Equity Harvest Fund was raised in 2002 with a 7% hurdle and an 80/20 split between limited partners and general partner on profits over and above the hurdle. The fund has gone past the hurdle for the first time at 30 September 2015.

· Within the third party managed funds both Realza (£0.7m) and Innova/5 (£0.4m) contributed to the overall increase of £1.1m in the third party managed funds.

· Management fees and banking costs contributed a reduction in net assets of £0.3m.

5. New investment and realisations

New investments in the quarter totalled £1.0m. Management fees accounted for £0.8m of this total with a further £0.2m follow-on investment made into Red.

A total of £0.1m was realised in the quarter following the repayment of bridging finance supplied by Innova/5 to a portfolio company.

6. Cash and Commitments

The Company had cash and near cash balances of £0.1m at 30 September 2015. In addition the Company has a revolving credit facility of £20m available until 27 February 2017.

As at 30 September 2015 the Company has outstanding capital commitments to limited partnership funds of £56.4m of which it is forecast that approximately up to £34m will be drawn over the next three years.

Following the quarter end the Company utilised £3.5m of the £20m bank facility. The Board and Manager remain satisfied with the balance between available credit facilities and outstanding commitments given the expected rate of new investment and potential realisations of existing investments.

7. Outlook

The Manager continues to see a strong level of new investment opportunities, although competition is robust and pricing is high when compared to that experienced historically.

Advisers have been appointed by several portfolio companies to assist in their sale. Progress is being made in these processes in order to maximise value for shareholders and capitalise on the favourable exit environment for private businesses.

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