Util Regulatory News (UTL)

18 May 2022

UIL LIMITED

(LEI Number: 213800CTZ7TEIE7YM468)

Publication of monthly factsheet

The latest monthly factsheet for UIL Limited ("UIL" or the "Company") will shortly be available through the Company's website at:

https://www.uil.limited/investor-relations/factsheet-archive

Monthly commentary

PERFORMANCE

UIL's NAV total return decreased by 3.0% in April, underperforming the FTSE All Share total return Index which was up marginally by 0.3% over the month.

Markets in April remained volatile, still affected by the Russian war with Ukraine which endures will little resolution on the horizon and with energy supplies tightening as Russia halted gas supplies to Poland and Bulgaria, with both countries refusing to pay in Roubles as decreed by Russia. The ongoing lockdowns in China further added to the pressure on the already disrupted global supply chain, as the country persists with its zero-Covid-19 policy, also heightening concern on what the impact will be on the global economy. In addition, the weaker economic data emerging from the US was discouraging whilst inflationary pressures persisted resulting in Jerome Powell, chairman of the Federal Reserve indicating a more aggressive path of interest rate increases is on the horizon. President Emmanuel Macron was also re-elected for his second term in April as the French President; however, his victory was overshadowed by the fact that Marine Le Pen won more votes that any far-right candidate in the history of the French Republic.

Markets in April were mostly down. The S&P Index was down by 8.8%, the Eurostoxx down 2.6% and the Dax Index down by 2.2%. The emerging markets Indices fared worse, with the Brazilian Bovespa down by 10.1%, the Mexican Bolsa down by 9.1% and the Chinese Shanghai Composite down 6.3%. The FTSE 100 Index managed to buck the trend ending the month up 0.4% despite the UK economy slowing more than expected and inflation continuing to edge higher with the consumer price index hitting its highest level since 1992 at 7.0%.

The weaker UK data resulted in Sterling performing poorly in the month of April, depreciating against most currencies, down 4.6% against the US Dollar (partially due to the strong performance of the US Dollar), down 4.5% against the Hong Kong Dollar and down 3.8% against the Indian Rupee. Sterling did strengthen marginally in April against the Australian Dollar by 0.8% and by 2.2% against the New Zealand Dollar.

The Brent Crude oil price continued to benefit over the month, up by 1.3% to USD 109.34/bbl on the back of ongoing concerns around energy supplies due to the geopolitical issues with Russia, whilst industrial metal prices such as copper fell 7.5% on the back of concerns prompted by slower economic growth and Covid-19 lockdowns in China. Gold was also down in April by 2.1% to USD 1,896.93/oz.

PORTFOLIO

There were no changes to UIL's top ten constitutes in April.

One of the top performers for the month was Resolute Mining, up 6.1% on the back of its quarterly activities report which reported a reduction in net debt by USD 54.1m due to improved operational performance and asset sales of USD 43.7m.

Orbital's shares remain volatile and its share price decreased by 22.9% during the period after gaining 59.1% in March. Somers' valuation declined by 7.0%, primarily due to the 7.4% decrease in Resimac's share price, its largest holding. Starpharma's share price was down 6.1% and Allectus' valuation was down 1.1%.

Purchases during the month for the portfolio totalled £6.2m and realisations amounted to £2.7m.

DEBT

Bank debt positions were slightly reduced in underlying foreign currency terms in April, though Sterling's weakness resulted in the overall liability increasing marginally to £51.8m from £51.4m. The facility was drawn as AUD 34.1m, USD 29.7m and EUR 10.6m.

Foreign exchange hedge positions as at the end of April against Sterling were AUD 64.6m, CAD 61.8m, USD 61.3m and EUR 9.0m. The AUD hedge against USD was unchanged at AUD 10.0m. 

OTHER

UIL's ordinary share price decreased by 0.8% to 238.00p. The discount to NAV narrowed to 33.7% as at 30 April 2022 from 35.1% as at 31 March 2022.

The share prices of the 2022 and 2024 ZDP shares were unchanged and the share prices of the 2026 and 2028 ZDP shares increased by 1.3% and 2.6%, respectively.

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited and ICM Limited

Telephone: 01372 271486