01/03/10
Candover Investments plc -Preliminary unaudited results for the year ended 31st December 2009
Business highlights
- Financial stability substantially improved through a combination of asset sales, increased investment valuations and a lower cost base
- Investment period of Candover 2008 Fund terminated in January 2010, releasing Candover from all liabilities including further investment commitments
- Candover Partners currently focused on maximising the value from existing portfolio and exploring options to rebuild investment capacity
Financial headlines
- Net assets per share of 1038p, an increase of 15.1% compared to the NAV at 30th June 2009 (902p); up 1.2% against 31st December 2008 (1026p). Rise in NAV driven by steady recovery in underlying portfolio valuations, largely due to increase in valuation multiples particularly with respect to Expro International
- Net debt of £74.8 million as at 31st December 2009 - including £106.3 million of cash or cash equivalents - representing a loan-to-value ratio of 26% (2008: 34%), well within the required threshold of 40%
- Net debt reduced to £60.1 million and loan-to-value ratio falls to 23% on a pro-forma basis following post year end combined cash proceeds of £14.7 million from the sale of Springer Science+Business Media and a further Candover 2001 Fund carry payment
- Outstanding investment commitments to the Candover 2005 Fund of £80.8 million more than twice covered by cash and undrawn bank facilities
Portfolio
- Wood Mackenzie realised at a 2.7x multiple and an IRR of 56% and Springer realised at a 1.8x multiple and an IRR of 28%
- Successful capital restructuring of Hilding Anders with Candover maintaining control and the $1.4 billion refinancing of Expro International’s entire senior debt in the high yield bond market
- Portfolio management by Candover Partners targeted on ensuring each investee company has appropriate capital structure and is well positioned to maximise profitability and cash flow either organically or by acquisition
- Six of the ten largest investments delivering earnings ahead of prior year with all portfolio companies well positioned to grow in 2010
Malcolm Fallen, Chief Executive Officer, said:
“We have taken decisive action over the past year to ensure that Candover is on a much more stable footing. The strategic review and the subsequent restructuring of the firm and the Candover 2008 Fund, together with some timely asset realisations, have all contributed to our much-improved financial health. Our priority for the year ahead is to build on that progress and begin to explore the options to build an enduring business which creates value for all of Candover’s investors.
“We are committed to supporting the high quality team of investment professionals at Candover Partners, who are clearly focused on delivering the value inherent in the portfolio. We will also work with them to consider how and when to rebuild investment capacity in the light of the changed environment. We believe that Candover is well positioned to move forward against an uncertain external backdrop.”
Ends.
* Candover means Candover Investments plc and/or one or more of its subsidiaries
** Candover Investments means Candover Investments plc
*** Candover Partners means Candover Partners Limited
To view the full preliminary announcement, please click here