Marwyn Value Investors Limited
16 November 2012
Interim management statement for the period from 1 July 2012 to 16 November 2012.
Introduction
This interim management statement covers the period from 1 July 2012 to 28 September 2012 together with relevant information up to the date of publication.
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 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, software, aggregates and support services.
Material Events and Transactions
On 7 September ETO announced the acquisition of Alliance Films Holdings, Inc for a total consideration of CAD$225 million. Alliance is a leading independent distributor of filmed entertainment products in Canada, the United Kingdom and Spain. ETO financed the Acquisition through the placing of £110m of new equity at 150 pence per share, and CAD$150m of new debt commitments. The placing was conditional on shareholder approval that was confirmed at a general meeting that took place on 28 September. The deal remains subject to Canadian regulatory approval and is expected to complete in early 2013. On 17 September ETO also announced that it had entered into a four year output agreement with Dreamworks Studios to distribute their films in all media across the UK and Benelux.
On 13 September Advanced Computer Software plc announced the acquisition of Strand Technology, the leading supplier of clinical care management solutions to community care and mental health organisations, for £2 million. On 17 September the company announced its trading update for the half year ended 31 August, with revenue growth of 20%, EBITDA growth of 10% and net cash of £1.5m.
General Financial Information
Ordinary Shares
Ordinary shares |
28 Sep 2012 |
31 Aug 2012 |
30 Dec 2011 |
Net Asset Value per Share p (basic) |
185.86 |
177.98 |
201.3 |
Share price (p) |
126.75 |
113.5 |
141 |
Discount (%) |
31.8% |
36.2% |
29.9% |
Net Assets (GBPm) |
122.87 |
117.66 |
133.1 |
Market Capitalisation (GBPm) |
83.79 |
75.03 |
93.21 |
Number of Ordinary shares |
66,106,473 |
66,106,473 |
66,106,473 |
% change |
1 month to 28 Sep 2012 |
3 months to 28 Sep 2012 |
12 months to 28 Sep 2012 |
NAV per Ordinary share |
4.43% |
7.38% |
-4.44% |
Ordinary Share Price |
11.67% |
10.70% |
-8.15% |
FTSE All Share Index (ex Investment Trusts) |
0.84% |
3.70% |
13.10% |
The Company's total NAV for the Ordinary shares is broken down across the following companies:
Company |
Sector |
% of NAV at 28 Sep 2012 |
% of NAV at 31 Aug 2012 |
% of NAV at 30 Dec 2011 |
Advanced Computer Software |
Healthcare Software |
14.91% |
16.24% |
10.82% |
Breedon Aggregates |
Construction Materials |
21.06% |
21.78% |
14.48% |
Entertainment One |
Entertainment Rights |
78.34% |
76.00% |
87.56% |
Marwyn Management Partners |
Diversified Transport and Consumer Goods |
2.64% |
2.80% |
3.67% |
Silverdell |
Asbestos Services |
4.62% |
4.79% |
2.60% |
|
|
|
|
|
Other assets of the Master Fund |
|
1.16% |
1.27% |
0.87% |
Liabilities of the Master Fund |
|
-22.73% |
-22.88% |
-19.99% |
Net assets |
|
100.00% |
100.00% |
100.00% |
|
|
|
|
|
|
|
|
|
|
B Ordinary Shares
B Ordinary shares |
28 Sep 2012 |
31 Aug 2012 |
30 Dec 2011 |
Net Asset Value per Share p (basic) |
0.86977 |
0.96338 |
109.8 |
Share price (p) |
56.0 |
56.0 |
70 |
Discount (%) |
35.6% |
41.9% |
36.2% |
Net Assets (GBPm) |
4.36 |
4.83 |
5.5 |
Market Capitalisation (GBPm) |
2.80 |
2.80 |
3.51 |
Number of B Ordinary shares |
5,008,870 |
5,008,870 |
5,008,870 |
% change |
1 month to 28 Sep 2012 |
3 months to 28 Sep 2012 |
12 months to 28 Sep 2012 |
NAV per B Ordinary share |
-9.72% |
-23.00% |
-15.88% |
B Ordinary Share Price |
0.00% |
-5.88% |
-21.68% |
FTSE All Share Index (ex Investment Trusts) |
0.84% |
3.70% |
13.10% |
The Company's total NAV for the B Ordinary shares is broken down across the following companies:
Company |
Sector |
% of NAV at 28 Sep 2012 |
% of NAV at 31 Aug 2012 |
% of NAV at 30 Dec 2011 |
Fulcrum Utility Services Limited |
Support Services |
66.44% |
69.46% |
65.11% |
Paragon Entertainment Limited |
Leisure |
32.71% |
29.55% |
31.82% |
|
|
|
|
|
Other assets of the Master Fund |
|
4.64% |
4.38% |
3.40% |
Liabilities of the Master Fund |
|
-3.79% |
-3.39% |
-0.34% |
Net assets |
|
100.00% |
100.00% |
100.00% |
A copy of the interim management statement and further information about the Company can be found on the Company's website (www.marwynvalue.com).
Enquiries to:
Axio Capital Solutions Limited
Floor 1
Liberation Station
St Helier
Jersey JE2 3AS