Dunedin Ent.it. Regulatory News (DNE)

7 Nov 2008 15:50

Dunedin Enterprise Investment Trust PLC (Company No SC52844) - Interim Management Statement

Dunedin Enterprise Investment Trust PLC ("Dunedin Enterprise") specialises in the provision of private equity finance. This is an Interim Management Statement issued by Dunedin Enterprise in accordance with the Rule 4.3 of the UK Listing Authority's Disclosure Rules and Transparency Rules. This Interim Management Statement relates to the period from 1 July 2008 to 6 November 2008.

1. Market Background

Dunedin Enterprise faces a market showing signs of recession, with corporate profitability coming under pressure, stock market values falling and a difficult banking environment.

All of these place pressure on the valuation of our investments. Nevertheless, the majority of our portfolio companies are trading satisfactorily so far, with profits in line with, or ahead of, last year.

We are working closely with all our portfolio companies to minimise the impact of the economic slowdown.

Although new investment activity has been slower, we retain significant cash resources and we would expect to be able to take advantage of new business opportunities when confidence and stability return to the market.

2. Financial Position and Performance

In the quarter to 30 September 2008, the unaudited net assets of Dunedin Enterprise, as valued by Dunedin Capital Partners Limited, fell from £159.1m to £144.3m. The net asset value per share of Dunedin Enterprise fell from 527.3p at 30 June 2008 to 478.1p at 30 September 2008, a decrease of 9.3%. The share price fell from 368p on 30 June 2008 to 345p on 30 September 2008, a decrease of 6.3%. This compares to a decrease in the FTSE Small Cap Index (ex inv co) during the same period of 15.6%. 

The discount of the share price to net asset value per share fell from 30.2% at 30 June 2008 to 27.8% at 30 September 2008. The company had cash balances of £67.5m at 30 September 2008, when this is excluded from net assets then the implied discount increases to 52.3%.

The share price as at 6 November 2008 was 280.5p, representing a discount of 41.3% to the net asset value as at 30 September 2008.

3. Post 30 September 2008

On 15 October 2008, Dunedin Enterprise invested £3.8m in the £23.5m buyout of Hawksford International from Rathbone Brothers plc. Hawksford International designs, establishes and administers trusts, foundations, family offices, companies and private trust companies for high and ultra high net worth individuals and corporate clients on a global basis.

On 31 October 2008, Dunedin Enterprise realised its investment in Gardner Group. The proceeds from the investment totalled £7.6m and consisted of £5.3m of repaid loan stock and £2.3m of rolled up interest. This realisation is reflected in the net asset value as at 30 September 2008.

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

ENDS