Final Results
Dunedin Enterprise Inv Trust PLC
13 June 2002
13 June 2002
DUNEDIN ENTERPRISE INVESTMENT TRUST PLC
PRELIMINARY RESULTS FOR YEAR ENDED 30 APRIL 2002
STRONG REALISATIONS IN DIFFICULT MARKET
Dunedin Enterprise Investment Trust PLC ('Dunedin Enterprise') specialises in
the provision of equity finance for management buyouts, management buyins and
growing businesses. The Trust is managed by Dunedin Capital Partners Limited,
the independent UK private equity house which operates out of offices in
Edinburgh and London.
• Net asset value per share fell over the year by 9.9% (362.2p to 326.5p),
however it was marginally higher than the 2001 interim figure of 325.3p.
This compares to a fall in the FTSE Small Cap Index (excluding investment
companies) of 15.2% over the same period
• Profit after tax increased by 25.9% to £4.1 million (2001: £3.3 million)
• Dividend maintained at 12.85 pence
• Yield of 5.0% to shareholders based on opening share price at 12 June 2002
• Unquoted equity realisations in cash or marketable securities since 30
April 2001 total £31.2million *1
• Flotation of John Wood Group results in 75.4% increase in value of Dunedin
Enterprise's shareholding (between April 2001 and June 2002)
• Sales for cash and listed paper of unquoted equity investments since 30
April 2002 *1 achieved a 40.1% uplift against prior year valuation
• Focus on building value in existing, enlarged, portfolio
*1 to 12 June 2002, including John Wood Group
Edward Dawnay, Chairman of Dunedin Enterprise, commented on the results:
'Dunedin Enterprise has taken a robust approach to difficult market conditions,
remaining true to its investment criteria. It has concentrated on building
portfolio value and on driving through exits at a time when well-priced new
investment opportunities are relatively scarce. The record on achieving
realisations in a tough market has been excellent. The company remains fully
invested and has repaid all the net indebtedness associated with the merger with
Group Trust. With a diverse portfolio of maturing assets, it is well positioned
to benefit from an economic upturn leading to further profitable exits and
recovery of value in underperforming assets'
For further information please contact:
Peter Smaill Dunedin Capital Partners Limited 0131 225 6699
Claire McCorquodale Dunedin Capital Partners Limited 0131 718 2313 / 07740 912043
Lesley Allan Hudson Sandler 020 7796 4133
Wendy Baker Hudson Sandler 020 7796 4133
CHAIRMAN'S STATEMENT
The year ended 30 April 2002 saw your Company's investment assets weather the
storms of sharply falling markets. The supply of good quality new opportunities
fell, especially since 11 September 2001, when buyers and sellers have
increasingly been unable to agree valuations for private equity transactions.
However, the depth and maturity of the portfolio, which now includes the £38
million of net assets acquired when Group Trust plc became part of Dunedin
Enterprise on 8 June 2001, has allowed progress in two significant respects on
which I now comment.
Investment activity
First, we were able to build value by adding to stakes in existing portfolio
companies. As reported in our interim results, we have built up the Letts
company by adding Filofax to its product stable; the AIM software company has
similarly been backed to facilitate further growth plans. We have also raised
additional finance to aid the growth of the specialised finance business,
Davenham.
As referred to above, at a time when entirely new investment was hard to achieve
within our criteria for risk and reward, we acquired an established portfolio,
Group Trust. In this way we broadened the portfolio base and expect the enhanced
scale and diversity achieved will bring future benefits.
Realisations
The second way in which portfolio strength has been an advantage is the
demonstrable ability of Dunedin Enterprise to achieve exits at a time when most
private equity houses have struggled to find the normal level of profitable
realisations. Including the post April 2002 London Stock Exchange listing of
the international oil services business John Wood Group, unquoted equity
realisations totalling cash or marketable securities of £31.2 million have been
recorded since 30 April 2001. These unquoted equity investments have achieved an
uplift of 40.1% over their valuation at April 2001. When account is taken for
the impact of realised failures and quoted share disposals, the uplift on total
equity realisations was 20.4%.
The £31.2 million of unquoted equity realisations compares to the £101.8 million
net assets of Dunedin Enterprise at 30 April 2002. This high level of
realisations is evidence of the ability of your Manager over several years to
identify well-priced opportunities which can be sold on, even in difficult
times. Since May 1997, Dunedin Enterprise's aggregate equity realisations have
been at an average premium of 22.5% to the prior year end valuation, confirming
the conservative valuation policies of the Manager.
Results and Dividend
The net assets at 30 April 2002 are £101.8 million (326.5p per share) and the
dividend has been maintained at 12.85p per share.
Net assets at 30 April 2001 of £86.5 million (362.2p per share) were increased
by the £38.0 million net assets of Group Trust. The transaction was financed by
Dunedin Enterprise through the issue of new ordinary shares and cash of £7.5
million paid to Group Trust shareholders.
The impact of adverse trading across all the components of the enlarged
portfolio had caused a reduction of £10.1 million recognised at 31 October 2001.
This resulted in a net asset value per share of 325.3p. By the year end,
however, the decline in values had broadly stabilised such that the net asset
value per share at 30 April 2002 is 326.5p. Full details of the movement in net
assets for the year are shown in the Managers Review.
Net assets per share have thus fallen 9.9% over the year. The FTSE Small Cap
Index (excluding investment companies) fell by 15.2% in the year and the FTSE
All Share Index (excluding investment companies) has fallen by 12.2%. The Board
and Manager will continue to focus on achieving a return to growth in net asset
values and share price.
I am pleased to say that John Wood Group successfully listed on the London Stock
Exchange on 5 June 2002, resulting on the day of flotation in a total return of
£1.0 million in excess of the figure struck in these financial statements as at
30 April 2002. This means that Dunedin Enterprise's net asset value per share
rose due to the impact of the listing by 3.1p on the day. Shareholders will be
interested to know the recent growth in value of Dunedin Enterprise's investment
in this company:
End of 1st
April 2001 October 2001 April 2002 day of listing
£'m £'m £'m £'m
Valuation 6.6 7.6 10.6 11.6
At listing we achieved realisation of a portion of the John Wood Group
investment for cash totalling £5.4 million. Dunedin Enterprise's remaining
shares are to be traded out consistent with maintaining an orderly market.
On the debit side, several investments have demonstrated poor trading, often
accompanied by control problems which were vigorously tackled when identified.
Recovery of value from these situations is a key aim of the Manager and further
information in this area is given in their report.
Profit after taxation increased from £3.3 million in 2001 to £4.1 million, an
increase of 25.9%, largely due to the expansion represented by the Group Trust
transaction. The Group Trust portfolio of investments contributed 27.7% to the
total income of the Company for the year. Your Board declared an interim
dividend of 2.85p per ordinary share in December 2001 and a final payment of
10.0p per ordinary share is proposed, giving a total of 12.85p for the year
(2001 : 12.85p). This represents a yield of 5.0% to shareholders based on the
opening share price at 12 June 2002.
We indicated that the dividend could be at least maintained in last year's
Report and, notwithstanding the current economic climate in which yields in
investee companies tend to fall on a portfolio basis, this hoped for outcome has
been achieved. The expectation remains that our reserves built up over the
years will permit a maintained dividend to shareholders going forward in year
2002/03. The volatility of trading conditions for our investee companies,
however, means that such a view cannot necessarily be relied upon as a guide for
the future.
Outlook
The prospects for private equity remain affected by the current climate and,
while the Manager is currently working on several promising potential
investments, completions in the immediate future look set to be at a lower level
than in the past.
The overall number of potential transactions for Dunedin Enterprise did in fact
increase markedly in 2001/02 and this deal flow remains strong. Dunedin
Enterprise's selection criteria, however, did not and will not alter to capture
transactions simply to expand the investment book by accepting higher risk or
unacceptably low potential return.
It is expected that new investment activity should become more evident later in
the current year. It is worth reflecting that, in the early 1990's, Dunedin
Enterprise secured some outstandingly successful stakes in companies which grew
out of that recession. The current downturn may yet give us the potential to
obtain good value in fresh transactions, while at the same time, we will be
seeking opportunities to develop the existing portfolio.
The Manager has now successfully raised £54.0 million from institutions under a
limited partnership fund, the Dunedin Buyout Fund L.P.. Together with this
fund, it is now possible for Dunedin Enterprise to participate in larger
transactions, in which appropriately closer control can be exercised by your
Manager.
Our recent success in exits still leaves your Company well invested and with
only £0.2m of net debt at the balance sheet date. With a diverse portfolio of
maturing assets, we are well positioned to benefit from an economic upturn
leading to further profitable exits and recovery of value in under-performing
assets.
Your Board considers that Dunedin Enterprise's potential as an investment
vehicle is based on the ability of the Company to enable investors to
participate in one of the most consistent strategies for achieving superior
long-term returns in private equity. By empowering management teams with
investment capital, we aim to deliver shareholder value at a rate of growth
above that achieved by other financial assets.
Shareholders
There are now over 5,000 shareholders in Dunedin Enterprise.
We were able to welcome Group Trust's shareholders to the enlarged Dunedin
Enterprise in 2001. Although it is too early to predict the ultimate returns
from the portfolio acquired, especially as the 11 September downturn impacted
shortly after acquisition, it is pleasing to note that exits in Young's
Bluecrest Seafood (where Dunedin Enterprise was already invested) and Viborg
have already occurred from within the Group Trust portfolio.
Despite the excellent prospects for realisations within Dunedin Enterprise
during the year under review, share price performance during the period was
disappointing, a phenomenon affecting nearly all investment trusts related to
venture capital. Your Board has examined the fluctuating, but generally
increased, level of discount implied by the relationship of share value to
underlying assets. It is worth reflecting that this discount was as high as 45%
in the early 1990's at a time when underlying assets with high potential were
already secured for the portfolio. Over the long term, private equity
investment continues to offer good prospects such that discounts at any point in
time may only reflect short term views held by small numbers of shareholders.
The Myners Review of Institutional Investment, announced in the last financial
year, has further endorsed the logic for holding private equity or venture
capital as a portion of a balanced portfolio. Our loyal base of shareholders in
long-established Dunedin Enterprise have thus in many cases anticipated the
emergence of private equity as an asset class by several years.
Board and Manager
In reflecting on the decade of investment success at Dunedin Enterprise I would
like to record with the full support and agreement of the Board, a note of warm
appreciation for the service of Brian Finlayson, the Deputy Chairman of your
Manager until his retirement in March 2002. His career in finance included the
establishment and public listing of Dunedin Enterprise, followed in the mid
1990's by rapid growth in shareholder value. Brian Finlayson's contribution was
central to the story of Dunedin Enterprise and we wish him an active and
prosperous retirement.
The Manager has appointed Peter Smaill as Principal Fund Director. He is a
private equity specialist with over 20 years experience in the industry. He was
a frequent syndicate partner with Dunedin Enterprise in the last decade, through
his role in successfully establishing the Scottish operations of NatWest
Ventures (now Bridgepoint Capital). He comes with an established track record
in private equity.
Annual General Meeting
The Annual General Meeting will take place at 12.30 pm on 21 August 2002 at the
offices of Dunedin Capital Partners at 10 George Street, Edinburgh, EH2 2DW.
The Directors of Dunedin Enterprise and of the Manager look forward to meeting
you then.
Edward Dawnay, Chairman
12 June 2002
Manager's Review
The year ended 30 April 2002 consisted of two contrasting halves. The first six
months, as described in the interim results at 31 October 2001, reflected the
impact of depressed values for all types of equity assets and the effect of
adverse trading conditions across a significant number of portfolio investments.
Since the half year, three significant exits have occurred: DeMure (Carlton
Clubs) a bingo club operator, Youngs Bluecrest Seafood, a processor of frozen
fish; and our oil services investment, John Wood Group, which listed on the
London Stock Exchange on 5 June 2002.
The net asset total return to shareholders for the year to 30 April 2002 was
-6.6% and over five years 29.4% compared with equivalent movements of -13.0% and
28.1% in the FTSE Small Cap Index (excluding investment companies).
The most significant investment during the year was the acquisition of Group
Trust plc in June 2001. The total movements in net assets, including the Group
Trust transaction, were as follows:
£'m
Net Assets as at 30 April 2001 86.5
Unrealised value decreases (30.7)
Unrealised value increases 21.1
Realised profit over opening valuation 1.2
Issue of ordinary shares on acquisition of Group Trust 28.0
Share repurchases (1.3)
Profit attributable to shareholders less management fees and loan interest charged to capital plus foreign 1.0
currency movements
Dividends paid to shareholders (4.0)
_____
Net Assets as at 30 April 2002 101.8
Realisations
Realisations and redemptions created the following value movements during the
year to 30 April 2002:
Company Cost Valuation at Proceeds Uplift over value Profit/(loss)
£'m 30 April 2001 Received £'m Over cost
£'m £'m £'m
Youngs Bluecrest Seafood Limited 4.9 5.9 10.5 4.6 5.6
Blacks Leisure plc 0.1 2.3 2.7 0.4 2.6
HMG Holdings Limited 0.6 0.6 1.0 0.4 0.4
Miscellaneous 2.4 1.6 2.1 0.5 (0.3)
8.0 10.4 16.3 5.9 8.3
Loan stock redemptions 9.4 9.4 9.4 0.0 0.0
17.4 19.8 25.7 5.9 8.3
Documedia Limited 5.2 3.0 - (3.0) (5.2)
DeMure Limited 3.0 6.4 5.6 (0.8) 2.6
Miscellaneous 1.2 3.8 2.9 (0.9) 1.7
26.8 33.0 34.2 1.2 7.4
Documedia, which specialised in developing new solutions for remote printing of
digital documents, failed to grow at the rate anticipated and the investment was
fully provided for at the interim stage. The company was put into receivership
in October 2001 when additional bank support could not be obtained and the
Manager judged that further investment could not be justified, despite
management changes having been implemented.
Unrealised Value Increases
Not all companies suffered, despite the well publicised recessionary pressures.
The overall positive variance on prior year was constituted as follows:
Valuation at Valuation at Increase in
30 April 2001 30 April 2002 Value
£'m £'m £'m
Davenham Group Holdings PLC 5.0 9.6 4.6
Letts Filofax Group Limited 4.0 8.1 4.1
John Wood Group PLC 6.6 10.6 4.0
Portman Holdings Limited 3.6 6.8 3.2
OSS Environmental Holdings Limited 5.2 6.2 1.0
C.G.I. International Limited 6.0 6.7 0.7
Group Trust investments 12.6 14.4 1.8
Miscellaneous others 5.9 7.6 1.7
____ ____ ____
48.9 70.0 21.1
Specialist asset financier Davenham encountered strong demand for its niche
short-term lending products to growing businesses throughout the UK and
profitability rose strongly during the year.
The Letts acquisition of Filofax has gone well and an uplift results from
applying discounted market price earnings ratios to its profit stream. No
account has been taken of the brand value of these highly recognisable trading
names.
John Wood Group was revalued in light of the impending flotation but, as the
Chairman's statement indicates, at a conservative and discounted value to the
levels achieved at listing for this excellent long held investment of Dunedin
Enterprise.
Portman bucked the downward profit trend evident in many air travel related
business, focusing on efficiency and margin improvements and adapting to new
income structures within the business travel agency market.
Unrealised Value Decreases
The principal movements within this category are as follows:
Valuation at Valuation at Reduction in
Cost 30 April 2001 30 April 2002 Value
£'m £'m £'m £'m
Ehrmanns Holdings Limited 4.9 4.9 - 4.9
CRT Displays Group Limited 3.8 3.8 - 3.8
Blaze Signs International Limited 3.8 3.8 - 3.8
Motherwell Bridge Holdings Limited 1.8 3.6 1.3 2.3
Clee Hill Plant Holdings Limited 1.5 3.2 2.4 0.8
Group Trust Portfolio 17.4 17.4 6.8 10.6
Listed investments 1.0 8.6 6.1 2.5
Other investments 9.3 12.7 10.7 2.0
____ ____ ____ ____
43.5 58.0 27.3 30.7
Ehrmanns's management proved unable to retain some of its customer base and
encountered a period of intense margin pressure as supermarkets sought to reduce
the number of suppliers. The Board of the company has been strengthened with the
appointment of a new sales director with many years industry experience.
CRT Displays specialised in the supply and distribution of advanced audio-visual
equipment, and was affected by the slow down in corporate client demand for
digital projection equipment. Despite intensive efforts to develop a survival
plan an administrative receiver was appointed on 10 June 2002.
Blaze Signs has suffered from deferral of corporate rebranding projects which
has slowed order intake for its signage and fitting out activity. The company
acted swiftly to reduce its cost base to a level commensurate with lower
activity levels and remains well placed to benefit from a recovery in the
market.
During the year in question, Motherwell Bridge, which had been expected to
recover from a series of trading setbacks, encountered a significant unforeseen
loss in one of its subsidiaries. This subsidiary has now been sold and the
company's Board has developed a plan to restore shareholder value.
The decline in listed stocks is principally represented by Latchways, which fell
over the year by £2.0 million, a reaction to a slowdown in the USA. However,
the company's results announced on 11 June 2002 revealed that, although only two
months into the current year, orders are comfortably ahead of the same period in
2001.
Within the whole portfolio at the year end there were a number of investments
where no value is attributed at 30 April 2002, although they were all trading,
albeit below plan. Several of these investments are in highly geared leveraged
buyouts where the underlying business has a positive enterprise value, but one
which is not at present sufficiently high to exceed the level of debt. Your
Manager believes recovery of value in such situations will, in some but not all
cases, result in write-back of a proportion of these provisions.
New Investment
As previously mentioned the principal feature of the year's investment activity
was the merger of Group Trust interests into Dunedin Enterprise. The
transaction added £39.5 million of investments to the portfolio. The aggregate
effect of these investments in the period to 30 April 2002 can be summarised as
follows:
£'m £'m
Realised gains: Youngs Bluecrest Seafood Limited 2.6
HMG Holdings Limited 0.4
3.0
Unrealised increased: Various 1.8
Unrealised decreases: Interdean Group Limited (1.3)
Trident Components Group Limited (1.9)
Cheynet Industries S.A. (1.3)
EMTEC GmbH (1.2)
Various others (4.9)
(10.6)
____
Impact on net assets (5.8)
Due to difficult trading conditions experienced following their acquisition, we
reduced the valuation of a number of Group Trust investments by a net £5.8
million. However, a profit of £2.6 million was recorded on the portion of the
Youngs Bluecrest Seafood stake included within the Group Trust investment assets
acquired.
Certain companies were badly hit following the events of September 11.
Interdean, the largest investment, was particularly affected by reduced
corporate spend on global staff movements. Trident, the light metal components
manufacturer, suffered from relocation disruption. Cheynet, the narrow elastic
fabric manufacturer, experienced a slowdown in demand from the USA and incurred
restructuring costs. EMTEC incurred losses as demand for its magnetic and
digital tape storage products fell due to the global slowdown in economic
activity.
In addition, further investments were made into existing portfolio companies :
£'m Purpose
Letts Filofax Group Limited 2.1 Acquisition of Filofax
Goals Soccer Centres Limited 1.0 Addition of new sites
AIM Group Holdings Limited 1.6 Secondary buy-out
4.7
These additional stakes were made in line with our policy of, wherever possible,
accelerating the value of existing portfolio companies with established
management teams. In each case satisfactory progress has been made since the
additional funds were subscribed. Other follow-on investments totalled £1.7
million.
Fund Investments
Dunedin Enterprise also supported Funds where we perceive an opportunity to
broaden the scope of investment returns and/or pursue strategic goals of the
Company;
Fund Fund Type Drawdown Further Comment
In Year Commitment
£'m £'m
Dunedin Buyout Fund L.P. MBO 1.0 6.0
ADD One L.P. Technology 0.5 2.3
LGV 2001 Private Equity L.P. MBO/Private Equity 1.5 1.4
First Cambridge Gateway Technology 0.2 1.4
Advent Private Equity Fund III Technology 0.4 1.3
Alta Berkeley VI C.V. Technology 0.2 0.9
LGV 2000 Private Equity L.P. MBO/Private Equity 0.8 0.4
Miscellaneous others 0.1 0.5
___ ____
4.7 14.2
By supporting the Dunedin Buyout Fund, Dunedin Enterprise achieves the benefits
of easier access to larger deals. A greater range of investment opportunities
can be tackled without the need to syndicate widely. The effect of this is to
give the Manager greater influence over the underlying investments and improve
the returns for Dunedin Enterprise.
The Legal & General ('LGV') Funds have given rise to co-investment
opportunities; the technology Funds, investing in the aftermath of the shake-out
of the technology bubble, give Dunedin Enterprise investors exposure to
high-growth potential companies via proven specialist investment management
teams selected by the Manager.
Share Buy-backs
As a result of a widening discount experienced along with many comparable
investment businesses, the Board sanctioned a limited level of share buy-back
activity. During the year £1.3 million was utilised to buy-back shares at an
average price of £2.65, and at a significant discount to net asset value,
resulting in an enhancement of net asset per share.
The Manager will be able to implement, as and when directed by the Board of
Dunedin Enterprise, further purchases of shares in the market, especially given
the additional liquidity created by the strong rate of recent realisations.
However, the ability to buy-back shares needs to be balanced with the
desirability of preserving investment firepower for new and incremental stakes
where an attractive balance of risk to reward is identified.
Borrowing Facilities
As set out in the Chairman's statement, the company had net borrowings of £0.2
million at 30 April 2002 (2001 : £8.5 million). Following the Group Trust
transaction, bank facilities available amounted to £39.0 million.
The Manager considers that this level of bank facilities will give adequate
scope for potential investment activity, especially in view of the opportunity
to deploy resources of Dunedin Enterprise alongside the £54 million raised for
the Dunedin Buy-Out Fund.
Dunedin Capital Partners Limited
12 June 2002
DUNEDIN ENTERPRISE INVESTMENT TRUST PLC
PRELIMINARY RESULTS FOR YEAR ENDED 30 APRIL 2002
GROUP BALANCE SHEET 30 APRIL 30 APRIL
2002 2001
£ £ £ £
Fixed Assets
Listed Investments 7,056,693 11,265,342
Unlisted Investments 96,694,836 85,324,145
103,751,529 96,589,487
Current Assets
Debtors 1,861,443 826,679
Cash at bank 22,903,962 6,546,619
24,765,405 7,373,298
Creditors: amounts falling due within one year
Multi currency loans facility (8,102,130) -
Other creditors (3,575,001) (2,488,393)
(11,677,131) (2,488,393)
Net current assets 13,088,274 4,884,905
Creditors: amounts falling due after more than one (15,000,000) (15,000,000)
year
___________ __________
Total equity shareholders' funds 101,839,803 86,474,392
Net asset value per share 326.5p 362.2p
DUNEDIN ENTERPRISE INVESTMENT TRUST PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 APRIL 2002
CONSOLIDATED STATEMENT OF TOTAL RETURN
2002 2001
£ £ £ £ £ £
Revenue Capital Total Revenue Capital Total
Gains on investments - (8,267,151) (8,267,151) - (10,440,617) (10,440,617)
Income *1 5,544,000 - 5,544,000 5,128,260 - 5,128,260
Investment Management Fee (733,366) (2,200,100) (2,933,466) (1,030,887) (1,546,330) (2,577,217)
Other expenses (361,067) - (361,067) (366,442) - (366,442)
Net return before finance 4,449,567 (10,467,251) (6,017,684) 3,730,931 (11,986,947) (8,256,016)
costs and tax *2
Interest payable and similar (334,813) (1,004,439) (1,339,252) (452,801) (679,202) (1,132,003)
charges
Return on ordinary activities 4,114,754 (11,471,690) (7,356,936) 3,278,130 (12,666,149) (9,388,019)
before tax
Taxation - - - (9,437) 9,437 -
Return attributable to equity 4,114,754 (11,471,690) (7,356,936) 3,268,693 (12,656,712) (9,388,019)
shareholders
Dividends (4,005,299) - (4,005,299) (3,068,257) - (3,068,257)
Transfer to reserves 109,455 (11,471,690) (11,362,235) 200,436 (12,656,712) (12,456,276)
Basic Return per ordinary 13.5p (37.6p) (24.1p) 13.7p (53.0p) (39.3p)
share
Actual Return per ordinary 13.2p (36.8p) (23.6p) 13.7p (53.0p) (39.3p)
share
Note 1
Income
Continuing operations 4,009,208 - 4,009,208
Acquisitions 1,534,792 1,534,792
-
5,544,000 - 5,544,000
Note 2
Net return before finance costs and tax
Continuing operations 3,161,493 (4,650,573) (1,489,080)
Acquisitions 1,288,074 (5,816,678) (4,528,604)
4,449,567 (10,467,251) (6,017,684)
Basic return per share is based upon 30,581,590 ordinary shares, being the
weighted average number of shares in issue during the year.
Actual return per share is based upon 31,191,941 ordinary shares, being the
number of ordinary shares in issue at the year end.
DUNEDIN ENTERPRISE INVESTMENT TRUST PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 APRIL 2002
GROUP CASH FLOW STATEMENT
2002 2001
£ £
Net revenue before finance costs and taxation 4,449,567 3,730,931
(Increase)/decrease in accrued income (671,856) 154,609
(Increase)/decrease in other debtors (12,172) 25,445
Increase in creditors 110,804 32,760
Tax on investment income included within income from UK companies - (283,000)
Management fees charged to capital (2,200,100) (1,546,330)
Net cash inflow from operating activities 1,676,243 2,114,415
Servicing of finance (1,619,271) (1,132,003)
Taxation recovered 452,511 197,274
Financial Investment
Purchase of investments (11,083,410) (38,058,446)
Sale of investments 34,183,537 11,545,338
Acquisitions
Cash consideration on purchase of Group Trust (7,500,000) -
Deal costs incurred on purchase of Group Trust (995,041)
Equity dividends paid (3,772,116) (2,831,559)
Financing
Purchase of ordinary shares (1,302,329) (71,306)
Cash and short term deposits assumed on purchase of Group Trust 6,317,219 -
Increase/(decrease) in cash 16,357,343 (28,236,287)
On 8 June 2001 the acquisition of the entire share capital of Group Trust plc
was completed for a mix of ordinary shares and cash. The Group Trust plc assets
and liabilities acquired and the funding of the transaction is noted below:
£
Investments 39,542,219
Cash at bank and in hand 6,317,226
Other net liabilities (7,844,995)
Net assets acquired 38,014,450
Fair value adjustments (659,248)
37,355,202
Discount arising on net assets (830,185)
36,525,017
Purchase financed by:
Ordinary shares issued 28,290,453
Cash consideration paid to Group Trust shareholders 7,500,000
Deal costs 995,041
Less: deal costs transferred to share premium (260,477)
36,525,017
Notes
1. The directors recommend a final dividend of 10.0p per share
for the year to 30 April 2002. If approved, the dividend will be paid on 23
August 2002 to shareholders on the register at close of business on 26 July
2002. The ex-dividend date is 24 July 2002. An interim dividend of 2.85p per
share was paid on 25 January 2002.
2. The financial information for the year ended 30 April 2001
has been extracted from the annual report and accounts of the company which has
been filed with the Registrar of Companies and on which the, auditors' report
was unqualified. The accounts have been prepared under the same accounting
policies used for the year to 30 April 2001, other than the adoption of FRS9
Deferred Tax during the year.
3. The statutory accounts for 2002 contain an unqualified
audit report and will be delivered to the Registrar of Companies following the
company's Annual General Meeting which will be held at 10 George Street,
Edinburgh, EH2 2DW on Wednesday 21 August 2002 at 12.30 p.m.
4. The statement of total return (incorporating the revenue
account) and balance sheet set out above do not represent full accounts in
accordance with Section 240 of the Companies Act 1985. The accounts have been
prepared in accordance with the Statement of Recommended Practice 'Financial
Statements of Investment Trust Companies'.
5. The annual report will be posted to shareholders in July
2002 and copies will be available to members of the public at the Company's
Registered Office, 10 George Street, Edinburgh, EH2 2DW.
TEN LARGEST INVESTMENTS
The ten largest investments account for 64.5% of the total portfolio of Dunedin
Enterprise as listed below:
Approx Percentage of
Percentage Cost of Directors' total portfolio
Of equity Investment Valuation at valuation
Company Name % £000 £000 %
John Wood Group PLC 1.1 3,793 10,618 10.2
Davenham Group Holdings PLC 34.4 4,960 9,602 9.3
Letts Filofax Group Limited 41.1 3,961 8,089 7.8
Portman Holdings Limited 16.8 2,516 6,820 6.6
C.G.I. International Limited 46.5 2,092 6,690 6.4
OSS Environmental Holdings Limited 27.9 5,168 6,181 6.0
Latchways plc 19.1 180 5,565 5.4
Interdean Group Limited 4.0 6,247 4,876 4.7
Goals Soccer Centres Limited 39.7 4,491 4,491 4.3
Thomson Brothers Limited 44.6 3,535 3,972 3.8
36,943 66,904 64.5
'Approx. Percentage of equity' relates to the ordinary share capital of the
relevant company and assumes full exercise of outstanding options, warrants and
conversion rights.
Notes to Editors
1. Dunedin Enterprise Investment Trust PLC floated in 1987 as Melville
Street Investments.
2. Dunedin Enterprise Investment Trust PLC is managed by Dunedin Capital
Partners Limited. Dunedin Capital Partners Limited is an independent private
equity company owned by its directors. The company specialises in providing
equity finance for management buy-outs, management buy-ins and growing
businesses with a transaction size of £5 - 25 million. It operates throughout
the United Kingdom from its headquarters in Edinburgh and offices in London.
Dunedin Capital Partners is itself the result of a management buy-out which took
place in 1996. The team has recently doubled in size after an active year in
2000. In addition to managing Dunedin Enterprise Investment Trust, Dunedin
Capital Partners has raised £54 million for the Dunedin Buyout Fund LP in 2001/
02.
This information is provided by RNS
The company news service from the London Stock Exchange
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