TIDMCRV
RNS Number : 3825E
Craven House Capital PLC
03 July 2019
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")
Year-end Update and Financial Calendar
Craven House Capital (AIM:CRV) is pleased to announce the
following unaudited year-end investment update covering the year
ending 31 May 2019.
Highlights
-- Directors estimate that Net Asset Value ("NAV") per share has
increased by 17% to $9.99 per share in the six-month period from
November 2018 to May 2019.
-- Changes in valuations reflect the previously announced
repositioning of capital allocation and current investment focus in
North America.
The table below sets out the latest estimate of the appropriate
carrying value of the Company's investments as at 31 May 2019 in
comparison to the values as of the latest published financial
statements of the Company.
Investment Estimated value at Value at 30 Nov
31 May 19 18 (unaudited)
(unaudited)
Shares in Craven Industrial
Holdings Plc $27,605,161 $23,892,006
Comprising:
Shares in DLC Holdings Corp. $8,757,041 $6,491,893
Shares in Qeton Ltd $650,206 $1,551,814
Shares in Craven House Angola
LDA $7,921,212 $8,903,150
Shares in Craven House Capital
North America LLC $7,907,782 $4,528,396
Shares in Kwikbuild Corporation
Ltd $2,368,919 $2,416,753
Portfolio update
The valuation of the Company's shareholding in Craven Industrial
Holdings Plc ("CIH"), its principal wholly-owned investment holding
company, has increased from $23.9m to $27.6m. 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 latest published share price of DLC's shares as of 31
May multiplied by the number of shares owned by CIH.
The valuation of DLC has increased due to an increase in the
share price of DLC between Nov 18 and May 19.
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 $1.55m to $0.650m reflecting a reduction in the
earnings of Qeton during the period, with shares in Qeton valued at
a multiple to net earnings based on the prior 12 months of trading.
Whilst earnings have reduced, Qeton remains profitable and has a
positive trading outlook.
Craven House Angola LDA ("CHA") - 100% owned by CRV.
Craven House Angola continued to provide local currency
financing to Angolan subsidiaries of US and European companies in
the consumer electronic and energy sectors. The carrying value of
CHA's loan portfolio reduced from $8.9m to $7.9m during the
six-month period to May 2019, reflecting the repayment of a portion
of the outstanding loan facilities, in accordance with the terms of
repayment. The proceeds of the repayments were passed to the parent
company and utilized for general working capital purposes and for
investment into Craven House's North American subsidiary.
Craven House Capital North America LLC ("CHNA") - 100% owned by
CRV
The valuation of Craven's US investment holding company, CHNA,
increased from $4.5m to $7.9m during the six months to May 2019.
The majority of this increase reflects the successful sale of
CHNA's wholly owned insurance business to LM Funding America Inc.
("LMFA") a NASDAQ listed entity as announced in January 2019. As of
May 2019, CHNA owns c.25% of the common shares of LMFA and holds
c.$3.6m in convertible notes in LMFA. CHNA also benefits from an
equity portfolio valued at c.$3.5m, on a mark-to-market basis, as
of May 2019.
Kwikbuild Corporation Ltd. - 97% owned by CRV
There was little change in the valuation of Kwikbuild during the
six-month period to the end of May 2019. The slight reduction in
carrying value is the result of exchange rate movements and
operating costs; the valuation of the underlying South African
assets remained unchanged during this period. We continue with the
process of liquidating our remaining holdings in South Africa.
Net Asset Value
As of the end of May 2019 the Directors estimate that the
combined value of the other assets and liabilities of the Company
represent a total liability of c.$2.6m. Of total liabilities of
c.$3.6m, the majority (c.$2.4m) comprise intercompany loans or are
due to related parties.
The approximate Net Asset Value of the Company therefore stood
at c.$25.0m as of May 2019, equating to an NAV per share of $9.99
(vs. $8.57 as of November 2018). This estimate is prior to
calculation of any performance fees due to the Investment Manager,
which will be finalized following completion of the year-end
audit.
Share buyback Update
The High Court has approved the reduction in share capital which
is now subject to final formalities before being completed.
Financial Calendar
In order to provide shareholders with more regular information
regarding the Company's investments, the Directors have decided to
amend Craven House's reporting cycle to include, in addition to its
interim and preliminary results, two further portfolio updates.
These portfolio updates will occur shortly after the May year-end
and November interim period in July and December respectively. This
RNS forms the first of these new portfolio updates.
Going forward, the Company intends to follow the below financial
timetable:
Anticipated
date
Portfolio and NAV update July
Preliminary financial results (for previous financial
year) Sept / Oct
Portfolio and NAV update December
Interim Results March
In addition to the above financial reporting calendar the
Company will, in accordance with its obligations under the AIM
Rules for Companies, make additional updates of matters which it
considers appropriate. This may or may not include additional NAV
updates.
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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