Last checked at 
23 May 2012 09:23
Dunedin Enterprise realises investment in WFEL
Dunedin Enterprise Investment Trust PLC ("Dunedin Enterprise") has exited from its investment in WFEL, the world leader in mobile tactical military bridging, to KMW, a German land defence systems provider. The sale has realised a multiple of 2.4x.
Capital and accrued interest in WFEL were valued at £12.15m as at 31 December 2011. In the period since that date, capital of £14.00m and income of £3.16m have been realised from the investment. The cost of the investment at 31 December 2011 was £6.87m, 50% of the gain over cost which represents £3.56m will be returned to shareholders in due course.
The proceeds received on exit represent an uplift of £2.04m from the valuation at 31 March 2012.
In December 2006 Dunedin, the manager of Dunedin Enterprise, backed the MBO of WFEL in a transaction valued at £48m. During Dunedin's investment WFEL has seen significant growth in sales, predominantly exports, increasing by nearly 70% to £36.2m in the year ended 31 December 2011. Employee numbers have increased by around 15% to 228 over this period.
WFEL manufactures high specification, high functionality, complex mobile bridging systems for use in military and disaster relief scenarios. WFEL's expertise - built on a century of UK engineering excellence and innovation - includes concept design, prototype manufacture and full scale production of a range of rapidly-deployable, modern bridging systems.
WFEL's most recent product is the Dry Support Bridge ("DSB"), which it supplies to the US Department of Defence under a $500m contract. WFEL recently secured a £57m contract for the supply of DSB's to Switzerland.
Shaun Middleton, managing partner of Dunedin, said: "The investment in WFEL has produced strong returns for Dunedin Enterprise shareholders. WFEL is an example of UK manufacturing at its best. In the last five years the company has seen significant international growth and enters KMW's ownership with an enviable long-term order book. This has been achieved on the back of the excellent engineering and service reputation held by the company and delivered by the WFEL management team. Important new contracts have been won in markets as diverse as Switzerland, Turkey and Indonesia. Further exciting new opportunities exist in Asia and South America in particular."