Last checked at 
9 Dec 2010 07:00
GRAPHITE ENTERPRISE TRUST PLC
INTERIM MANAGEMENT STATEMENT
QUARTER ENDED 31 OCTOBER 2010
Graphite Enterprise Trust PLC ('Graphite Enterprise' or the 'Company') presents its Interim Management Statement for the quarter ended 31 October 2010. This is the Company's second Interim Management Statement for its current 13 month financial period, which ends on 31 January 2011.
Unaudited net asset value
In the three months to 31 October 2010 the net asset value per share increased by 16.4p or 3.5% to 486.0p.
The value of the investment portfolio increased by £13.3 million in the period of which £7.1 million was attributable to a rise in the value of the underlying portfolio and £6.2 million to currency gains. After adjusting for expenses and other movements, the net asset value rose by £12.0 million.
Share price and discount
The share price increased by 7.7% to 300.0p in the three month period. This rise was greater than the 3.5% rise in the net asset value per share as the discount narrowed slightly from 40.7% to 38.3%.
The investment portfolio
The valuation of the investment portfolio as at 31 October has been prepared using the latest available managers' reports. When these figures were finalised, September valuations had been received covering 55% of the portfolio. The balance of the portfolio was valued using managers' reports as at 30 June.
Based on these figures, the underlying value of the portfolio in local currencies increased by £7.1 million or 2.6% in the quarter. The rise in the euro against sterling increased the sterling value of the portfolio by £6.2 million or 2.3%. The total valuation increase in the portfolio during the period was therefore £13.3 million or 4.9%. Including net new investment of £14.9 million, at the end of the period the total value of the portfolio was £297.4 million.
Cash flows
In the three months to 31 October 2010, cash and liquid assets fell by £12.8 million from £79.2 million to £66.4 million. During this period the Company invested £20.0 million in fixed income funds which had increased in value to £20.6 million at the period end. This is included in the cash and liquid assets closing balance.
A total of £21.3 million was invested in the portfolio in the period, of which £16.9 million was drawn down by funds, £4.2 million was invested in secondary fund purchases and £0.2 million was in a new co-investment.
Proceeds of £6.4 million were generated by the portfolio, the majority of which arose from three disposals. Realisation activity was lower than had previously been anticipated.
Balance sheet and commitments
The summary balance sheet as at 31 October 2010 is set out below:
£m | % of total assets | |
Investment portfolio | 297.4 | 82.2% |
Cash and liquid assets | 66.4 | 18.4% |
Net debtors/creditors | (2.0) | (0.6%) |
Total assets | 361.8 | 100.0% |
Net asset value per share | 486.0p |
Outstanding commitments fell by £7.6 million or by 3.8% to £193.8 million during the period. Drawdowns from funds reduced commitments by £16.9 million. This reduction was partially offset by increases of £3.0 million relating to acquired fund interests and by the decline in sterling increasing commitments denominated in foreign currency by £6.3 million.
The level of overcommitment, being the amount by which undrawn commitments exceed cash and liquid assets, increased by £7.4 million in the three months to £129.4 million. This was equivalent to 35.8% of total assets at 31 October 2010.
Recent events
The Directors are not aware of any events or transactions which have taken place between 31 October 2010 and the date of publication of this statement which have had a material effect on the financial position of the Company.
This information has not been audited or reviewed by the Company's auditors.
Enquires:
Stephen Cavell
Tim Spence
020 7825 5300