ICG Enterprise Trust Regulatory News (ICGT)

19 May 2009 10:20



GRAPHITE ENTERPRISE TRUST PLC

INTERIM MANAGEMENT STATEMENT

QUARTER ENDED 31 MARCH 2009

Graphite Enterprise Trust PLC ('Graphite Enterprise' or 'the Company') presents its Interim  Management  Statement for the quarter ended 31 March 2009. This is the Company's first Interim Management Statement for the financial year ending 31 December 2009, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

Investment objective

The objective of Graphite Enterprise is to provide shareholders with long term capital growth through investment in unquoted companies, mostly through specialist funds but also directly.

Unaudited net asset value per share 

The unaudited net asset value per share as at 31 March 2009 was 429.1p. This represents a fall of 4.4% from the level at 31 December 2008. The rise in the value of sterling against the euro accounted for 3.2% of this movement and falls in underlying valuations accounted for the remaining 1.2%. Net income and expenses had a negligible effect.

Share price and discount

The share price fell by 11.0% to 166.5p in the period from 30 December to 31 March. This compares with a fall of 10.2% in the FTSE All-Share Index in the same period. The discount to the net asset value per share increased from 58.4% to 61.2%.

The share price has subsequently risen strongly.  Since the quarter end, the share price has increased by 66.4% to 277.0p. This represents an increase of 48.1% in the year to date and compares with a rise of 2.5% in the Index in that period. The share price of 277.0p represents a discount of 35.4% to the net asset value per share at 31 March.

Valuations

The investment portfolio has been valued using the latest available managers' reports, with 18.8% by value based on valuations as at 31 March. The great majority of the remaining portfolio has been valued using managers' reports as at 31 December as later reports have not yet been received. The provision of £18.5 million made against the portfolio at 31 December 2008 has been maintained.

Based on these figures, the portfolio fell in value by 4.6% in the quarter to 31 March. Underlying valuations fell by 2.2% and the fall in the euro accounted for the remaining 2.4% decline.

Cash flows

In the three months to 31 March 2009, the Company funded drawdowns of £4.8 million and the portfolio generated proceeds of £0.3 million. Other net cash out flows amounted to £1.8 million. The rise in the value of sterling against the euro in the quarter reduced the sterling value of euro denominated cash balances by £5.7 million. Overall, cash balances fell from £139.0 million to £127.0 million.

  Balance sheet and commitments

The summary balance sheet as at 31 March 2009 is set out below:

Outstanding commitments fell from £307.3 million to £293.0 million during the period. The effect of the rise in the value of sterling against the euro reduced the balance by £9.5 million in the quarter. Drawdowns accounted for the remaining £4.8 million of the fall. No new commitments were made in the quarter. Overcommitment, the level by which commitments exceed cash and near cash, was £164.3 million at 31 March 2009.

In early April, the Company completed a secondary sale which reduced the overcommitment level by £9.6 million with no impact on net asset value. This would have had the effect of reducing overcommitment to £154.7 million, or 48.9% of net assets, at 31 March 2009.

Recent events

Other than the secondary sale noted above, the Directors are not aware of any events or transactions which have taken place between 31 March 2009 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

0207 825 5300