Util Regulatory News (UTL)

18 April 2023

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 declined by 6.5% in March, underperforming the FTSE All Share total return Index which was down 2.8% over the same period.

Markets were mixed in March, with volatility spiking following the collapse of Silicon Valley Bank, the largest bank failure since the Financial Crisis over a decade ago. Swift government intervention from regulators and the Federal Bank prevented this triggering a wider banking crisis, but the incident highlights tightening liquidity and the impact that rapid rate increases are having on the financial system. The S&P 500 Index shrugged off the bad news, gaining 3.5% over the month, while in Europe the Eurostoxx was up 1.8% as the Eurozone composite PMI expanded further to 54.1, driven by a strong rebound in services. In Australia, the ASX 200 declined by 1.1% in March with the RBA pausing their rate tightening cycle.

In emerging markets economic activity in China continued to rebound in March, with exports growing 14.8% in US Dollar terms and the services PMI hitting 57.8, the highest reading since November 2020. Hong Kong's Hang Seng Index was up 3.1% in March whilst the Shanghai Composite was down 0.2%. In Brazil the Bovespa Index fell by 2.9% in March, whilst markets in Mexico were more upbeat on the potential nearshoring boom, with the Mexico Bolsa up 2.2%. India's SENSEX was flat over the month, while the Vietnam Ho Chi Minh Index was up 3.9%.

Sterling broadly strengthened against most currencies, appreciating by 2.1% against the US Dollar, 1.6% versus the Canadian Dollar and 2.8% versus the Australian Dollar. In the commodities markets precious metals appreciated, with gold and silver prices up 7.8% and 15.2% respectively. Industrial metals were weak, with copper and nickel prices down 0.1% and 3.8% respectively, as was the Brent crude oil price which fell by 4.9% in March.

PORTFOLIO

There was one change to the top ten constituents of the UIL portfolio in March, with Panoramic Resources re-entering the top ten following the sale of UIL's holding in AssetCo to UIL's financial services investment platform and associated undertaking, Somers Limited. Panoramic's share price was up 15.4% over the month following the release of an updated Mine Plan with key outcomes including a longer mine life, higher average annual metal production, and improved financial outcomes. Panoramic is also Zeta Resources' third largest holding, and alongside Horizon Gold's 12.9% share price appreciation, helped Zeta Resources' Net Tangible Assets to increase by 4.4%. Zeta Resources' share price was up 7.4% in March with its discount to NTA narrowing to 21.1%.

Somers' valuation declined by 5.8% in the month, predominantly reflecting the Resimac share price which fell by 17.1%. Concerns over falling house prices in Australia and declining net interest margins continued to weigh on the shares. Resimac is also a top ten direct shareholding for UIL. The Market Herald's share price increased by 4.6% following the announcement of a strategic review and restructuring with the closure of certain underperforming activities which is expected to generate recurring cost savings. UEM's NAV total return gained 3.5% in March and UEM's share price was up 2.8% over the period. 

DEBT

Over the month, bank borrowings reduced from £50.0m to £37.5m all drawn in Sterling. There were no foreign exchange hedges in place during the month and as at the end of March 2023.

ZDP SHARES

The share prices of the 2024, 2026 and 2028 ZDP shares remained unchanged at 123.50p, 114.00p and 98.00p respectively.

OTHER

UIL's ordinary share price declined by 10.1% to 128.50p in March whilst the discount to NAV widened from 38.1% to 40.0%. 

The second quarterly interim dividend of 2.00p per ordinary share in respect of the year ending 30 June 2023 was paid on 31 March 2023 to shareholders on the register on 3 March 2023.

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited +44(0)1372 271486