Unaudited Interim Results 2023

Marwyn Value Investors Limited

28 September 2023

 

LEI: 213800L5751QTTVEA774

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA OR ANY JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO

28 September 2023

MARWYN VALUE INVESTORS LIMITED (THE "COMPANY")

Unaudited Interim Results 2023

Marwyn Value Investors Limited announces the publication of its interim results for the six months ended 30 June 2023.

The Interim Results are available on the 'Annual Reports and Interim Results' section of the Company's website, http://www.marwynvalue.com/company-information/financial-reports.

SUMMARY PERFORMANCE

Ordinary Shares

	NAV Total Return1	FTSE All-Share
Six months to 30 June 2023	(2.7)%	2.6%
Since inception3 (1 March 2006 to 30 June 2023)	175.3%	156.4%

Net assets of £93.0 million, a decrease of £5.1 million since 31 December 2022, with £2.5 million paid out in dividends

·   NAV per share of 167.5p as at 30 June 2023.

·   Total NAV return of (2.7)% since 31 December 2022.

·   Share price down 4.5p since 31 December 2022 to 90.5p as at 30 June 2023. The share price discount to NAV decreased to 46.0% as at 30 June 2023, compared to 46.3% as at 31 December 2022.

Continued significant distributions

·   Quarterly dividends of 2.265p per share paid in February, May and August 2023 with a further quarterly dividend of 2.265p expected to be paid in November 2023 and each quarter of 2024. Total annual dividend of 9.06p per share represents a yield of over 10% (based on share price of 90.5p as at 30 June 2023).

Strong cash position

·   Look-through cash balance of £32.0m at 30 June 2023 held within the fund structure, supplemented by significant capital available for investment within the portfolio entities.

2016 Realisation Shares

	Shareholder Total Return2	FTSE All-Share
Six months to 30 June 2023	(9.3)%	2.6%
Since inception3 (1 March 2006 to 30 June 2023)	196.4%	156.4%
Since creation of class4 (30 November 2016 to 30 June 2023)3	1.9%	40.8%

Net assets of £3.2 million, a decrease of £0.3 million since 31 December 2022

·   NAV per share of 341.0p as at 30 June 2023.

·   Total shareholder return of (9.3)% since 31 December 2022.

·   Over £1 million to be distributed in October 2023

2021 Realisation Shares

	Shareholder Total Return2	FTSE All-Share
Six months to 30 June 2023	(2.8)%	2.6%
Since inception3 (1 March 2006 to 30 June 2023)	173.5%	156.4%
Since inception4 (30 November 2021 to 30 June 2023)3	1.3%	7.8%

Net assets of £649 thousand, a decrease of £19 thousand since 31 December 2022

·   NAV per share of 180.1p as at 30 June 2023.

·   Total shareholder return of (2.8)% since 31 December 2022.

Manager's Review

We have maintained a cautious stance towards the markets and company valuations in recent years, a strategy that seems increasingly justified given the prevalent speculation and a somewhat unrealistic expectation regarding a return to ultra-low interest rates. We perceive the burgeoning sovereign debt issue and a contracting money supply as significant forces that will necessitate a recalibration of market expectations and valuations. We are beginning to observe early signs of these necessary adjustments taking place.

AdvancedAdvT has remained focused on its disciplined acquisition strategy since its £130 million capital raise in March 2021 under the highly capable leadership of Vin Murria. During the period, AdvancedAdvT successfully acquired a group of five software businesses from Capita at what we believe is a highly attractive valuation. With a substantial war chest still remaining following these acquisitions, AdvancedAdvT is now poised to explore synergistic acquisition opportunities and we see significant scope for value creation.

In May 2023, we initiated a promising venture with Palmer Street Limited, investing £8 million. Leveraging the expertise of its senior management team, formerly of Sanne plc - a distinguished FTSE 250 company acquired by Apex group in 2022 - Palmer Street is poised to carve out a unique business proposition in the private capital servicing sector. Partnering with Marwyn demonstrates the attractiveness of our team and strategy, paving the way for potential rapid growth and a significant enhancement in our investment and NAV appreciation starting from early 2024.

Le Chameau, with the strategic addition of Waheed Alli to the management and a further investment of £5 million from the Marwyn Funds, is gearing up for major milestones leading up to its centenary in 2027. The combination of the additional investment, providing the company with both increased working capital and growth capital to support the next phase of its development including expansion of digital and marketing functions alongside investment in brand and tech capabilities and the joint expertise brought by Waheed and the CEO, Corry Cavell-Taylor, forms a robust foundation for brand expansion in the coming years.

Marwyn Acquisition Company II (MAC II) has significantly benefited from the new CEO, Will Self, partnering with Chairman Mark Hodges. This collaboration has accelerated MAC II's strategic focus on financial services and intergenerational wealth.

We are also actively exploring opportunities in the media and entertainment space through 450 plc and are engaging with potential partners to enhance the prospects of Marwyn Acquisition Company III and MAC Alpha.

As we navigate through these volatile market conditions, our unwavering commitment to our investment strategy, as detailed in the Company's annual report and accounts, holds us in good stead. We firmly believe that our approach is attuned to the current market dynamics and economic environment. We extend our heartfelt gratitude for your sustained support and look forward to seizing promising opportunities that lie ahead.

James Corsellis, Chief Investment Officer, Marwyn Investment Management LLP

Robert Ware, Chairman of Marwyn Value Investors Limited, commented:

"Despite a challenging global market landscape, we are optimistic about the prospects that lie ahead. Our portfolio is exceptionally poised to capitalise on forthcoming opportunities, and we eagerly anticipate witnessing the growth and evolution of our portfolio companies. We are immensely grateful for your continued trust and investment in Marwyn Value Investors Limited."

¹ NAV Total Return assumes the reinvestment of dividends paid to shareholders into the Company at NAV.

² Shareholder Total Return is calculated as the movement in total shareholder value, including all distributions made to realisation shareholders over the relevant period.

³ For the ordinary shares, Inception to date NAV Performance is based on the combined weighted average NAV of Marwyn Value Investors I, II and B shares prior to their amalgamation, using the conversion ratio published on 17 April 2008. Realisation class inception to date is calculated based on the ordinary share performance up to the date the ordinary shares were converted to the relevant realisation class, then shareholder total return of the relevant realisation class from that date.

⁴ Realisation class shareholder total return from creation of class represents total shareholder return for the relevant class from the date that ordinary shares were converted to realisation shares for each class.

Capitalised terms used in the announcement and not otherwise defined have the same meaning as detailed in the Company's Annual Report and Audited Financial Statements for the year ended 31 December 2022.

Company enquiries:

Aztec Financial Services (Jersey) Limited

Chris Copperwaite / Magdala Mullegadoo

Telephone: [phone]

Investor Relations

Kam Bansil

Telephone: [phone]

PR Adviser - FGS Global

Rollo Head 07768 994987

Chris Sibbald 07855 95553

Corporate Broker - Liberum Capital Limited

Chris Clarke / Owen Matthews

Telephone: [phone]

Marwyn Value Investors Limited is a closed-ended investment company, trading on the London Stock Exchange Specialist Fund Segment - a fully regulated market for professional, institutional and sophisticated investors. Current investments through its underlying funds include AdvancedAdvT Limited, the operating business of Le Chameau, 450 plc, Marwyn Acquisition Company II Limited, Palmer Street Limited, Marwyn Acquisition Company III Limited, MAC Alpha Limited and Zegona Communications plc.

Shares in the Company are not designed or intended for retail investors. Marwyn Investment Management LLP, the Manager, does not promote shares in the Company to retail investors and they should not be offered to retail investors.

Cautionary Statement

This announcement contains forward-looking statements which are made in good faith based on the information available at the time of its approval. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END