Interim Management Statement

RNS Number : 2192W

Marwyn Value Investors Limited

15 November 2010

 



Marwyn Value Investors Limited

15 November 2010

Interim management statement for the period from 1 July 2010 to 15 November 2010.

Introduction

This interim management statement covers the period from 1 July 2010 to 31 October 2010 together with relevant information up to the date of publication. It has been produced for the sole purpose of providing information to the Company's shareholders in accordance with the requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.

Investment Objective

Marwyn Value Investors Limited (the "Company") (LSE: MVI) is a Specialist Fund Market-listed company which provides access to the investment strategy pursued by the Marwyn Value Investors L.P. (the "Fund").

The Fund invests in a portfolio of European small and mid-cap opportunities, pursuing a 'buy and build' strategy in sectors impacted by structural and regulatory change. The Fund focuses on sourcing and working alongside high quality management teams across a range of sectors, including media, leisure and gaming, software, food and support services.

The Fund seeks to take a minority investment position alongside other equity investors and then to work hand in hand with the company management to deliver upon the company's particular strategy. The investment approach is to invest for a period of between 3-4 years from the initial acquisition in the platform company. Marwyn Investment Management LLP ("MIM"), the investment manager to the Fund, has been able to achieve an exit for the Fund and management earlier than this where the execution of the strategy and the market conditions have allowed.  In other cases MIM view that Fund investors' interests are best served by providing the company with sufficient time to execute its strategy and achieve maximum value. The timing of past MIM vehicles and the history of the current portfolio is detailed below to illustrate this.

Company	Sector	Platform Launch Date	Initial Acquisition	Exit Date
Advanced Computer Software	Healthcare Software	Oct 2006	Aug 2008	-
Concateno*	Drug & Alcohol Testing	Apr 2005	Oct 2006	Aug 2009
Entertainment One	Entertainment Rights	Mar 2007	Mar 2007	-
Inspicio*	Inspection & Testing	Apr 2005	Oct 2005	Feb 2008
Breedon Aggregates	Construction Materials	Jun 2008	-	-
Melorio	Vocational Training	Oct 2007	Oct 2007	June 2010
Praesepe	Gaming	Apr 2006	Jul 2008	-
Silverdell	Asbestos Services	Apr 2006	Jul 2006	-
Zetar*	Specialty Confectionery	Jan 2005	Mar 2005	-

* Launched by Marwyn Ventures I L.P., a pilot fund to Marwyn Value Investors L.P..  Talarius, also launched by Marwyn Ventures I L.P., was launched in April 2005 with an initial acquisition date of June 2005 and was exited January 2007.

Material Events and Transactions

In September, Breedon Aggregates Limited (LSE: BREE LN) formerly Marwyn Materials Limited, completed the reverse takeover of Breedon Holdings Limited and £50.0 million placing as announced on 17 August to become the UK's largest independent aggregates producer.

Cancellation of shares held by the Fund

In September 2010 Marwyn Value Investors L.P., utilised the Fund's innovative exchange procedure to complete a return of capital to shareholders.  Following a purchase of ordinary shares by the Fund in September, just over £630k was returned to shareholders with the shares exchanged and cancelled on the 14 September 2010 exchange date.  Correspondingly, in the month of September, the discount reduced from 37.8% to 35.7%.

For more details of how the exchange procedure operates, see http://www.marwynvalue.com/company-information/exchange-procedure.stm

General Financial Information

Ordinary Shares

Ordinary shares	31 Oct 2010	30 Sep 2010	30 Jun 2010
Net Asset Value per Share p (basic)	135.9	117.3	117.4
Share price (p)	85.0	75.5	73.0
Discount (%)	37.4	35.7	37.8
Net Assets (GBPm)	89.82	77.57	78.67
Warrant Price (p)	N/A	N/A	1.00
Market Capitalisation (GBPm) (including warrants)	56.19	49.91	49.15
Number of Ordinary shares	66,106,473	66,106,473	67,006,473
Number of warrants	0	0	23,259,055

% change	1 month to 31 Oct 2010	3 months to 31 Oct 2010	12 months to 31 Oct 2010
NAV per Ordinary share	15.86%	18.28%	50.50%
Ordinary Share Price	12.58%	15.65%	42.86%
FTSE All Share Index	2.36%	8.10%	13.41%

The following table shows the exposure of the Company's Ordinary shares to the underlying investment companies in which the Marwyn Value Investors L.P. is invested:

Company	Sector	% of NAV at 31 Oct 2010	% of NAV at 30 Sep 2010	% of NAV at 30 Jun 2010
Advanced Computer Software	Healthcare Software	11.89%	13.02%	13.97%
Entertainment One	Entertainment Rights	63.68%	53.99%	56.57%
Breedon Aggregates	Construction Materials	19.70%	23.61%	6.32%
Praesepe	Gaming	12.46%	13.33%	12.88%
Silverdell	Asbestos Services	2.18%	2.80%	2.78%
Zetar	Specialty Confectionery	1.47%	1.70%	1.74%

B Ordinary Shares

B Ordinary shares	31 Oct 2010	30 Sep 2010	30 Jun 2010
Net Asset Value per Share p (basic)	116.3	119.6	122.40
Share price (p)	93.0	95.5	96.5
Discount (%)	20.0	20.1	21.2
Net Assets (GBPm)	5.82	5.90	6.13
Market Capitalisation (GBPm)	4.65	4.78	4.83
Number of B Ordinary shares	5,008,870	5,008,870	5,008,870

% change	1 month to 31 Oct 2010	3 months to 31 Oct 2010	11 months to 31 Oct 2010
NAV per B Ordinary share	-2.76%	-4.98%	26.55%
B Ordinary Share Price	-2.11%	-3.63%	-7.00%
FTSE All Share Index	2.36%	15.51%	10.65%

The following table shows the exposure of the Company's B Ordinary shares to the underlying investment companies in which the Marwyn Value Investors L.P. is invested:

Company	Sector	% of NAV at 31 Oct  2010	% of NAV at 30 Sep 2010	% of NAV at 30 Jun 2010
Fulcrum Utility Services Limited (formerly Marwyn Capital I Limited)	Support Services	54.06%	55.11%	52.18%
Marwyn Capital II	Investment Company	39.50%	38.40%	40.78%

Except as disclosed above, there are no other disclosures required under the DTR.

A copy of the interim management statement and further information about the Company can be found on the Company's website (http://www.marwynvalue.com/company-information/financial-reports.stm).

Enquiries to:  

Axio Capital Solutions Limited  

Surville Office  

La Ruette Pinel

St Helier  

Jersey

JE2 3HF  

 

END

 

 

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