Craven House Capital PLC Portfolio and NAV update (4593Y)
January 02 2020 - 1:00AM
UK Regulatory
TIDMCRV
RNS Number : 4593Y
Craven House Capital PLC
02 January 2020
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Craven House Capital plc
("Craven House" or the "Company")
Portfolio and NAV update
The Company provides the following unaudited investment update
covering the six-month period to 30 November 2019.
The table below sets out the latest estimate of the appropriate
carrying value of the Company's investments as at 30 November 2019
in comparison to the values as of the latest published financial
statements of the Company.
Investment Estimated value at Value at 31
30 Nov 19 May 19
(unaudited) (audited)
Shares in Craven Industrial
Holdings Plc $20,476,266 $27,368,571
Comprising:
Shares in DLC Holdings
Corp. $3,956,495 $8,757,041
Shares in Qeton Ltd $304,578 $413,617
Shares in Craven House
Angola Lda. $7,917,617 $7,921,212
Shares in Craven House
Capital North America
LLC $5,932,021 $7,907,782
Shares in Kwikbuild Corporation
Ltd $2,365,556 $2,368,919
Portfolio update
The valuation of the Company's shareholding in Craven Industrial
Holdings Plc ("CIH"), its principal wholly-owned investment holding
company, has decreased from $27.4m to $20.5m. This reflects the
change in the respective value of subsidiary holdings as
follows;
DLC Holdings Corp. (TSXV:DLC) - 68% owned by CRV
DLC is a Toronto Stock Exchange listed agricultural investment
company with holdings in Brazil and South Africa. The valuation
ascribed to CIH's shareholding in DLC in CRV's financial statements
reflects the published share price of DLC's shares as of 30
November multiplied by the number of shares owned by CIH. The
valuation of DLC has decreased as a result in a drop in the
mark-to-market valuation of the shares on the 30 November vs. the
31 May. Whilst the share price reduced from CAD$0.27 to CAD$0.12
during this period it is important to emphasise that the share
price remained at or above the $0.27 level for the majority of the
period and only traded down on very low volume during the tax loss
selling season in Canada. There has been no deterioration in the
valuation of the underlying holdings of DLC and management believe
that the end of period share price represents a significant
discount to the orderly liquidation value of DLC. Management also
believes that the political and economic situation in South America
will likely provide for further acquisition opportunities as
distressed sellers are forced to liquidate good properties.
Qeton Ltd ("Qeton") - 50% owned by CRV.
Qeton Ltd is a joint venture company focusing on the
distribution of mobile phones, tablet computers and accessories
into emerging markets.
The valuation of Qeton during the past six-month period has
reduced from $414k to $305k reflecting a small reduction in the
adjusted earnings of Qeton during the respective trailing
twelve-month periods. Qeton remains profitable, however trading is
likely to continue to be subdued in comparison to historic levels
due to weakness of currencies in local markets, particularly the
Angolan Kwanza vs. the US Dollar. This means products (manufactured
and shipped on a US Dollar basis) have become more expensive for
local consumers and demand is reduced. Management believes that the
importation of consumer electronics will remain a viable business
over the long term and will be highly correlated to the global oil
price which is the determining factor in access to foreign currency
and discretionary consumer spending.
Craven House Angola LDA ("CHA") - 100% owned by CRV.
There was no change in the valuation of CHA during the period.
The underlying loan portfolios continued to perform according to
their terms with interest payments received as expected during the
period. Management is evaluating options to repatriate capital from
Angola on an accelerated basis to take advantage of opportunities
in Europe and North America.
Craven House Capital North America LLC ("CHNA") - 100% owned by
CRV
The valuation of Craven's US investment holding company, CHNA,
reduced from $7.9m to $5.9m during the six months to November 2019.
This decrease is the result of mark-to-market valuation of shares
in DLC and LM Funding America Inc. owned by CHNA, which both
declined during the period.
Kwikbuild Corporation Ltd. - 97% owned by CRV
The valuation of Kwikbuild remained almost unchanged during the
period. There was no activity relating to the underlying assets of
this subsidiary.
Performance Fee due to Investment Manager
The Investment Manager has again confirmed that it has agreed to
waive $1.66m in performance fees which are payable to them under
the terms of the Management Services Agreement in place with the
Company. The Board welcomes this decision by the Investment Manager
as it, once again, emphasises the Investment Managers desire that
their interests remain aligned with all other shareholders.
Ends
For further information please contact:
Craven House Capital Plc Tel: 0203 286 8130
Mark Pajak
www.Cravenhousecapital.com
SI Capital Tel: 01483 413500
Broker
Nick Emerson
www.sicapital.co.uk
SPARK Advisory Partners Limited Tel: 0203 368 3550
Nominated Adviser
Matt Davis/Mark Brady
www.Sparkadvisorypartners.com
About Craven House Capital:
The Company's Investing Policy is to invest in or acquire a
portfolio of companies, partnerships, joint ventures, businesses or
other assets globally in any geographic jurisdiction. The company
will invest in both developed and developing markets providing long
term patient capital and is often involved in special situations,
restructuring, expansion and turn around investments in crisis and
transitioning economies.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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