Pantheon International Regulatory News (PIN)

4 Oct 2005 07:57

PANTHEON INTERNATIONAL PARTICIPATIONS PLC (PIP)PRELIMINARY ANNOUNCEMENT OF RESULTSCHAIRMAN'S STATEMENTI am pleased to report a strong performance by PIP in the financial year to30th June 2005. Our net asset value per share increased by 14.9% to 657.9pwhile the ordinary share price did even better, increasing by 40.5% to 650.5p.Our total assets rose by 55.6% to ‚£381.5 million mainly as a result of anuplift in the value of investments of ‚£52.0 million and capital raising of ‚£87.5 million.PERFORMANCENET ASSET VALUEThe year was a good one for global private equity, not least because the levelof realisations increased significantly. This, together with the increasedvaluations placed upon many unrealised investments in our portfolio, led to anincrease in net asset value per share of 14.9% in the year. In addition, theuplift in the value of investments in the year was not offset by adversecurrency movements in the same way as it had been in the previous year.ORDINARY SHARE PRICEAt the beginning of the financial year our share price stood at a discount of19.1% to net asset value. During the year our Manager was increasingly activein marketing the benefits of PIP to a wider audience of investors. In addition,we saw increased global investor interest in the attractions of private equityas a fast growing asset class considered capable of producing superior returnsover the long term. These two factors led to increased investor demand for ourshares, which resulted in the discount to net asset value narrowing to 1.1% at30th June 2005, and our share price consequently showed an excellent 40.5%growth over the year.INVESTMENT ACTIVITYThe financial year saw a high level of investment activity. The total amountinvested in private equity assets during the year was ‚£116.4 million, up from ‚£48.8 million the previous year, while the total amount distributed to PIP as aresult of investment realisations increased to ‚£90.1 million from ‚£72.2 millionthe previous year.SECONDARY COMMITMENTSDuring the year PIP committed ‚£115.8 million in five transactions to purchasesecondary interests in private equity funds. These included two largetransactions announced by PIP in October 2004. Since these transactions wereagreed we have seen prices increase for secondary interests. By acquiring theseinvestments PIP has managed to add high quality assets at what appears to havebeen an attractive time.PRIMARY COMMITMENTSThe year has seen an increase in total capital raised by private equity funds,driven by profitable realisations and increased demand from institutionalinvestors. Against this background, gaining access to the best opportunitieshas become increasingly difficult. Pantheon's global expertise andlong-standing relationships continue to ensure that PIP is able to access manyof the best private equity funds worldwide. The amount of capital committed toprimary investments reached record levels of ‚£109.0 million over the year toend June. In order to reinvest the increasing level of distributions receivedfrom PIP's portfolio, the Board has increased the rate at which PIP will committo new funds from ‚£225 million to ‚£300 million over a three year period.MARKET REVIEW AND PROSPECTSDuring the financial year we saw a strengthening of the global private equitymarket, with improved performance. The levels of realisations by private equityfunds increased, producing good returns to investors. This was driven by strongcompetition among both corporate and financial buyers of businesses, by moreactive IPO markets and by the very strong debt markets which enabled manycompanies to return cash to shareholders as a result of releveraging. Atpresent these trends show every sign of continuing in the coming financialyear. Improving returns shown by earlier funds together with increasing globaldemand for investment in private equity resulted in increased demand forprivate equity funds. This positive environment is likely to lead to evenhigher levels of fundraising in the current year and consequently a broad rangeof potential investment opportunities should be available for PIP. Theincreased amount of money in the hands of private equity investors, togetherwith the large amounts of debt available to them, has led to an increase in theprices being paid for new investments and an increase in leverage in the globalbuyout markets. This continuing trend needs to be watched carefully in thefuture and highlights the importance of good fund selection by our Manager.Deal flow within the secondary market remains strong, supported by the numberof investors who are selling in order to actively manage their portfolios.However, in the current pricing environment, investment discipline isimportant. Overall the prospects for an active and growing global privateequity market in the current year are strong and PIP is well placed to takeadvantage of these trends.CAPITAL STRUCTUREFollowing its capital restructuring in September 2004, PIP raised ‚£87.5 millionthrough a placing of new redeemable shares. This money was raised in order torepay the debt used to finance the purchase of two secondary portfolios and toprovide capital for further purchases. The ability to raise capital in thismanner is advantageous in that it allows PIP to participate in substantialpurchases of secondary portfolios which it would not otherwise be able to do.SAVINGS SCHEMEThe Savings Scheme brochure and rules are being updated and a copy of the newbrochure will be sent to all shareholders when it is available. The Board hopesthat communication efforts in relation to the Savings Scheme will lead toinvestment in the Company by a wider range of investors. A copy of the newbrochure will be made available at www.pipplc.com.NEW BOARD MEMBERIn April the Directors of PIP were pleased to announce that Ian Barby hadaccepted an invitation to join the Board as a non executive director. Ian was aManaging Director of Merrill Lynch Investment Managers until 2003. Hisextensive experience of the investment management industry and the investmenttrust sector will be of great value to PIP. Ian has been appointed Chairman ofthe Audit Committee.ANNUAL GENERAL MEETING AND PRESENTATIONThe Annual General Meeting of the Company will take place at 12 noon on 22ndNovember 2005 at Pantheon's office. Pantheon will give a presentation on theprogress of PIP's portfolio. Both the Directors and Pantheon look forward tomeeting shareholders informally after the meeting.Thomas H. BartlamChairman4th October 2005STATEMENT OF TOTAL RETURN (unaudited)(*incorporating the revenue account) 1 July 2004 to 1 July 2003 to 30 June 2005 30 June 2004 Revenue Capital Total Revenue Capital Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Gains on investments - 51,947 51,947 - 15,415 15,415 Currency gains - 161 161 - 463 463 Dividends and interest 4,589 - 4,589 635 - 635 Investment management (4,130) - (4,130) (3,596) - (3,596)fee Other expenses (824) 257 (567) (805) (192) (997) Return on ordinary (365) 52,365 52,000 (3,766) 15,686 11,920 activities before financing costs and tax Interest payable and (1,256) - (1,256) (965) - (965)similar charges Revaluation of - (1,839) (1,839) - (4,872) (4,872)participating loan notes Return on ordinary (1,621) 50,526 48,905 (4,731) 10,814 6,083 activities before tax Tax on ordinary - (516) (516) - (271) (271)activities Return on ordinary (1,621) 50,010 48,389 (4,731) 10,543 5,812 activities after tax for the financial year transferred (from)/to reserves 1 July 2004 to 1 July 2003 to 30 June 2005 30 June 2004 pence pence pence pence pence pence Return per share (3.87) 119.43 115.56 (21.91) 48.83 26.92 * The revenue column of this statement is the revenue account of the Company.All revenue and capital items in the above statement derive from continuingoperations.No operations were acquired or discontinued in the year.These accounts have been prepared using the accounting standards and policiesadopted at the previous year-end.BALANCE SHEET (unaudited) As at 30 As at 30 June 2005 June 2004 ‚£'000 ‚£'000 Fixed assets Investments 371,950 233,246 Investment in subsidiary undertaking 1 1 371,951 233,247 Current assets Debtors 2,868 1,540 Cash at bank 12,507 11,968 15,375 13,508 Creditors - amounts falling due within one 5,838 1,571 year Net current assets 9,537 11,937 Total assets less current liabilities 381,488 245,184 Creditors - amounts falling due after more than one year Participating Loan Notes - 121,555 Capital and reserves Called-up share capital 18,050 14,467 Share premium account 91,959 6,034 Special reserve 119,962 - Capital reserve 166,804 116,794 Revenue reserve (15,287) (13,666) Total equity shareholders' funds 381,488 123,629 Amounts attributable to shareholders and 381,488 245,184 participating loan note holders As at As at 30 June 2005 30 June 2004 Number of ordinary 67p 26,471,013 21,592,964 shares in issue Number of redeemable 1p 31,513,199 - shares in issue Number of participating - 21,660,589 loan notes (PLNs) in issue Net asset value per 657.9p 572.5p share Adjusted redemption - 561.2p value of participating loan notes CASHFLOW STATEMENT (unaudited) Year ended Year ended 30 June 2005 30 June 2004 ‚£'000 ‚£'000 Cash flow from operating activities Investment income received 4,232 628 Deposit interest received - 8 Investment management fees paid (3,464) (3,627) Secretarial fees paid (105) (81) Other cash payments (584) (671) Net cash inflow/(outflow) from 79 (3,743)operating activities Returns on investments and servicing of finance Revolving credit facility and (409) (230)overdraft interest paid Loan commitment and arrangement fees (301) (257)paid PLN commitment fees paid (751) (373) Net cash outflow from returns on (1,461) (860)investment and servicing of finance Taxation Withholding tax suffered on limited (516) (271)partnership distributions Tax recovered - - Net cash outflow from taxation (516) (271) Capital expenditure and financial investment Purchases of investments (113,758) (48,810) Purchases of government securities (57,199) - Disposals of investments 87,168 71,580 Disposals of government securities - - Realised currency gains/(losses) 22 (53) Net cash (outflow)/inflow from capital (83,767) 22,717 expenditure and financial investment Net cash (outflow)/inflow before (85,665) 17,843 financing Financing Proceeds from issue of ordinary shares - 3 Proceeds from issue of redeemable 87,529 - shares Proceeds from issue of PLNs - 13,800 Costs of issue of PLNs - (247) Costs of ordinary and redeemable share (1,453) - issues Repayment of bank revolving credit - (20,362)facility Realised currency gains on repayment 34 587 of revolving credit facility Net cash inflow/(outflow) from 86,110 (6,219)financing Increase in cash 445 11,624 The above financial information does not constitute statutory accounts asdefined in Section 240 of the Companies Act 1985. The comparative financialinformation for the year ended 30 June 2004 is taken from the full accounts,which have been delivered to the Registrar of Companies and contained anunqualified audit report and did not contain statements under S.237(2) or (3)of the Companies Act 1985. Statutory financial statements for the year ended 30June 2005 have not yet been approved, audited or filed and will be delivered tothe Registrar of Companies following the Annual General Meeting.For further information please contact:Rhoddy Swire, Director of Pantheon International Participations PLC - 020 74846200Alastair Bruce, Pantheon Ventures Limited - 020 7484 6200Andrew Lebus, Pantheon Ventures Limited - 020 7484 6200Email: contactus@pipplc.comENDPANTHEON INTERNATIONAL PARTICIPATIONS PLC