Quarterly Trading Statement

RNS Number : 5733M

Standard Life Euro Pri Eqty Tst PLC

19 September 2012

 



Standard Life European Private Equity Trust PLC

Investment update for the quarter ended 30 June 2012

·          NAV fell by 1.3% to 232.1p for the quarter ended 30 June 2012

·          NAV total return was up 2.0% for the first nine months of the current financial year starting 1 October 2011

·          Realised gains and income during the quarter were £6.2million (1.6% of NAV). The unrealised loss on the portfolio on a constant exchange rate basis was £1.6 million (0.4% of NAV); in addition, there was an unrealised foreign exchange loss of £8.7 million (2.3% of NAV).

·          100.0% by value of the portfolio was valued by the respective underlying managers at 30 June 2012

·          Outstanding commitments were £136.0 million at 18 September 2012

·          Net cash was £8.5 million at 18 September 2012

For the quarter ended 30 June 2012 the Company's net asset value per ordinary share ("NAV") fell by 1.3% to 232.1p (diluted - 229.3p), from 235.2p (diluted - 232.3p) at 31 March 2012. At 30 June 2012 the Company's net assets were £377.0 million (31 March 2012 - £381.9 million).

New transactional activity remained subdued in the European private equity market in the second quarter of 2012, due to the impact of the difficult macro-economic and political environment in Europe and constraints on debt availability for leveraged transactions. A total of €13.7 billion of transactions by enterprise value was reported during the quarter, which was slightly higher than the first quarter of 2012, but compared to a value of €30.6 billion in the second quarter of 2011. Notwithstanding, the Manager continued to see exit activity across the Company's portfolio as private equity managers focused on selling investee companies, particularly to corporate buyers.

The closing value of the Company's portfolio of 37 private equity fund interests was £388.4 million at 30 June 2012 (31 March 2012 - £396.0 million). The total unrealised loss for the quarter ended 30 June 2012 was £10.3 million, of which £1.6 million was an unrealised loss on a constant exchange rate basis and £8.7 million was an unrealised foreign exchange loss. The £1.6 million fall in the value of the portfolio on a constant exchange rate basis reflected weaker listed equity markets, partially offset by positive earnings growth at many underlying portfolio companies. The FTSE All-Share Index and the MSCI Europe Index (in euros) fell by 3.7% and 4.6% respectively during the quarter. The unrealised foreign exchange loss was driven by the euro depreciating by 3.0% relative to sterling over the quarter.

During the period the Company funded £8.1 million of draw downs (six months ended 31 March 2012 - £16.1 million) and received £11.5 million of distributions (six months ended 31 March 2012 - £33.4 million). The distributions received generated £6.2 million of realised gains and income, which was equivalent to a return of 2.2 times the acquisition cost of the realised investments.

The Company had total outstanding commitments to its 37 private equity fund interests of £122.8 million at 30 June 2012 (31 March 2012 - £133.9 million).

At 30 June 2012 the Company had net indebtedness of £11.8 million (31 March 2012 - net indebtedness of £14.4 million).

During the period from 30 June 2012 to 18 September 2012 the Company funded £10.1 million of draw downs and received £31.1 million of distributions. On 4 September 2012 the Company made a new fund commitment, with a €30 million commitment to Equistone Partners Europe Fund IV. The Company has existing commitments to Equistone Partners Europe Funds I, II and III. Accordingly, at 18 September 2012 the Company's total outstanding commitments and net cash balance were £136.0 million and £8.5 million respectively.

It is anticipated that the Company will release its preliminary announcement for the financial year ending 30 September 2012 on or around 3 December 2012.

For further information please contact:-

Peter McKellar of SL Capital Partners LLP (0131 245 0055)

Note:-

Standard Life European Private Equity Trust PLC is an investment company managed by SL Capital Partners LLP, the ordinary shares of which are admitted to listing by the UK Listing Authority and to trading on the Stock Exchange and which seeks to conduct its affairs so as to qualify as an investment trust under sections 1158-1165 of the Corporation Tax Act 2010. The Board of Standard Life European Private Equity Trust PLC is independent of Standard Life plc.

 

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