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 2016.

1. Unaudited net asset value per share

The unaudited net asset value per share at 30 September 2016 was 473.0p. This represents a decrease of 0.6% from the level at 30 June 2016.

2. Share price

The share price has increased by 5.2% from 310.0p to 326.0p in the quarter to 30 September 2016. This compares to an increase in the FTSE Small Cap Index of 11.9% over the same period. The discount to net asset value at 30 September 2016 was 31%.

3. Balance Sheet

The unaudited balance sheet as at 30 September 2016 is noted below:-

4. Net asset value movements

The portfolio of investments has been re-valued at 30 September 2016. The decrease in net asset value in the quarter can be attributed to:-

· Within the Dunedin managed portfolio there were valuation increases at Blackrock (£1.1m) and Kee Safety (£0.6m). Blackrock continues to show strong organic earnings growth. Kee Safety has now completed ten acquisitions under Dunedin's ownership. The maintainable earnings of Kee Safety have benefitted from both organic growth and a contribution from these ten acquisitions

· The valuation of the two European funds (Innova - £1.0m, Realza - £0.6m) have both benefited from favourable exchange rate movements. In addition Innova also benefited from valuation increases from portfolio companies operating in the food and building products sectors.

· These valuation uplifts have been offset principally by reductions in value at Hawksford (£2.8m).and Formaplex (£0.7m). At both Hawksford and Formaplex there has been uncertainty due to significant management change over the past six months. Both companies now have new leadership in place.

· Management fees and banking costs contributed a reduction in net assets of £0.6m.

5. New investment and realisations

A further investment of £0.3m was made in EV to support working capital.

A total of £5.7m was realised from portfolio companies during the quarter. Both Kee Safety and U-POL successfully completed re-financings. Kee Safety redeemed £1.1m of loan stock and paid £1.8m of accrued loan interest. U-POL paid £2.6m of accrued interest.

6. Cash and Commitments

The Company had cash and near cash balances of £1.6m at 30 September 2016. In addition the Company has a revolving credit facility of £20m available until 31 May 2018.

As at 30 September 2016 the Company has outstanding capital commitments to limited partnership funds of £37.0m of which it is forecast that approximately up to £20m will be drawn over the next three years.

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 UK economy and M&A market continues to be affected by the economic uncertainty, the oil price weakness and the impact of the Brexit vote. Trading in portfolio companies continues to be mixed.

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