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27 Apr 2009 10:56
Ludgate Environmental Fund Limited
Net Asset Value for the period ended 31 March 2009 and Chairman's comments
As of 31 March 2009 the Net Asset Value ('NAV') of Ludgate Environmental Fund ('LEF') was 101.0p per ordinary share compared with 111.8p as of 31 December 2008.
The Directors are confident that the stated NAV properly reflects the value of the underlying assets of the Fund. Together with the diversification of the holdings, the active corporate management of investments and the commitments made in discernible sub sectors within its environmental and cleantech mandate, LEF is well placed to achieve its investment objectives. Additionally LEF has a strong pipeline of potential new investments.
The reduction in NAV resulted principally from the previously announced fall in the value of Hydrodec shares, the volatility of £ against € and the re-valuation of Emergya Wind Technologies ('EWT') to reflect current trading.
During the quarter under review the background of severe difficulty for a number of listed private equity and venture capital funds, ever tighter bank finance markets and absent IPO markets has continued. However, the active approach to investment management adopted by your Board and LEF's Manager and Adviser has meant regular testing of the strategy, balance sheet strength, performance and governance of each of LEF's investee companies and where action has been necessary, including further investment by LEF, this has strengthened the strategic and financial viability of the Fund's underlying assets.
LEF has active governance positions, either through board members or observers, at Rapid Action Packaging ('RAP') and STX Services ('STX') and expects to establish similar positions at Hydrodec and agri.capital. The board approves each such appointment after consideration of any perceived conflicts of interest which may arise from this policy. These possible conflicts include the liquidity of the Fund's holding and the fiduciary responsibilities of respective directors.
LEF's cash deposits are held with prime banks on maturities reflecting the anticipated investment, currency and liquidity schedules of the Fund; these are reviewed at each roll over date.
The Manager's confidence in fulfilling LEF's stated objective of delivering significant real returns on capital in the medium term has been further endorsed by the technology led approach to climate change, which has received additional support in various stimulus packages announced by governments during the quarter.
John Shakeshaft
Chairman, Ludgate Environmental Fund Ltd
About Ludgate Environmental Fund:
Ludgate Environmental Fund ("Ludgate Environmental" or the "Fund") is a Jersey domiciled closed-ended investment company, listed on AIM. The Fund was launched in August 2007, raising £26.7 million at listing. A further £3.0 million was raised by the Fund in February 2008 and an additional £17.9 million was raised in November 2008.
The Environmental/Cleantech sector is characterised by products and services which optimise the use of natural resources while reducing environmental impact in ways that enhance economic value. Opportunities include: energy efficiency and alternative energy sources including renewable energy; water treatment and management; waste management and resource recovery; industrial process advances; and emission reduction technologies.
Ludgate Environmental has been launched to enable experienced and sophisticated investors to participate in a diverse portfolio of investment holdings in Environmental/Cleantech companies. Ludgate Environmental believes that there are a number of key drivers of growth, both in terms of business and investment activities, within this sector including:
increasing demand for, and decreasing supply of, natural resources;
rising concern over the economic costs of waste accumulation and pollution;
growing awareness of environmental issues amongst the public; and
environmental technology advances in recent years.
The Fund's Investment Adviser, Ludgate Investments Limited, has significant experience and a successful track record of investing in and helping to build companies within this sector.
Ludgate Environmental Fund
John Shakeshaft +44 (0)20 7591 4800
Ludgate Investments Limited
Nick Pople / Nigel Meir +44 (0)20 7621 5770
Media Enquiries
Carbon International Limited
David Hopkins / Samantha Hill +44 (0)20 7483 3343
NOMAD
PricewaterhouseCoopers LLP
Melville Trimble +44(0)20 7213 8898
Broker
Fairfax I.S. PLC
Ewan Leggat +44 (0)20 7598 5368
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