TIDMEIH
RNS Number : 6319A
EIH PLC
30 September 2015
30 September 2015
EIH PLC
("EIH" or the "Company")
Interim Results
The Company announces its interim results for the six months
from 1 January 2015 to 30 June 2015. A copy of this announcement
will shortly be available for inspection at www.eihplc.co.uk.
Chairman's Statement
The unaudited net assets of EIH as at 30 June 2015 were valued
at US$32.2 million and therefore net asset value ("NAV") per share
at that date was 49.9 cents based on 64,500,002 ordinary shares in
issue (31 December 2014 NAV per share: 49.8 cents).
The NAV per share increased by 0.2% in the period under
review.
Total operating costs during the period were US$0.22m, or 11%
below the comparable prior year figure. In addition, EIH paid
certain annual management fees and expenses to Evolvence India Fund
PCC ("EIF") in respect of its commitments to that fund. These costs
are embedded in the capital account of EIF and do not appear in the
profit or loss for EIH.
The Company's investment portfolio comprises the following
(based on unaudited values as at 30 June 2015):
Table 1. Investments Capital Commitment Capital Invested Capital Fair value Fair Value
Distribution Adjustment
--------------------- ------------------- ----------------- -------------------- -------------------- -----------
US$'000 US$'000 US$'000 US$'000 US$'000
Fund Investments
(equity)
Evolvence India Fund
PCC 45,120 45,120 (23,970) 779 21,929
Direct Investments
(equity)
EIF Co Invest VII
(RSB Group) 6,970 6,970 (29) (25) 6,916
EIF Co Invest X
(Gland Pharma
Limited) 466 466 - 885 1,351
52,556 52,556 (23,999) 1,639 30,196
--------------------- ------------------- ----------------- -------------------- -------------------- -----------
Further details on the Company's investment portfolio are set
out below and in Note 5 to the interim financial statements.
EIF
EIF has now drawn down 100% of its committed capital.
As at 30 June 2015 the Company had US$21.1m invested in EIF
(capital called of US$45.1m, less refund of capital contributions
of US$24.0m), equivalent to 32.7 cents per share. At the reporting
date the Fair Value (unaudited) of the Company's investment in EIF
was US$21.9m, equivalent to 34.0 cents per share, representing a
1.03 x multiple over cost.
During the period under review the BSE SENSEX and BSE MIDCAP
Indian stock market indices advanced by 1.0% and 3.0% respectively
in local currency. The currency picture was relatively stable in
the period under review and it is also noted that the Indian Rupee
("INR") weakened by 0.7% against the US Dollar during the
period.
EIF's underlying private equity funds performed well such that
on the basis of beginning and end period fair values, and adjusting
for drawdowns and distributions made during the period, the fair
value of EIF's underlying funds increased by approximately 1.1% in
US Dollar terms, while their value increased by approximately 1.8%
in INR terms. On the same basis of measurement, the aggregate value
of EIF's direct investments increased by approximately 5.4% in US
Dollar terms, while in INR terms this increase was approximately
6.1%.
Both EIF's underlying funds and its direct investments hold
exposure to listed equities and EIF's overall weighting was
approximately 6% at the period end, concentrated in the underlying
funds.
EIF's private equity fund exposure is weighted towards funds
with vintages of 2006 and later. The four funds of these vintages
comprise 71.7% of EIF's private equity fund weighting. The
remaining six funds, with a 28.3% weighting, are all 2004 and 2005
vintages. EIF's three largest funds constitute 65.4% of EIF's
private equity fund weighting. These funds are Jacob Ballas India
Fund III (Growth / PIPE category), JMF India Fund I (Growth
category) and HI-REF International LLC (Real Estate category). The
majority of EIF's ten underlying private equity funds have fully
drawn down their committed capital from EIF, and EIF's remaining
commitments are concentrated in one fund, HI-REF International LLC
Fund. During the period under review, EIF received net
distributions from all but three of its funds at a rate of more
than double the comparable prior year figure.
The Directors have reviewed certain underlying financial
information provided to us by EIF's Investment Manager and we
remain confident that as EIF's underlying portfolio matures and
further realisations are achieved, further cash distributions will
be received.
RSB Group ("RSB")
RSB is a large automotive components group based in Pune with a
multi-product portfolio comprising of propeller shafts, gears,
axles, machined engine components, trailers and construction
equipment parts. The Company's direct investment in RSB is held
through EIF Co Invest VII. The shareholders in EIF Co Invest VII
are the Company and EIF, which invested US$7.0m and US$10.0m
respectively, for a total investment of US$17.0m. No fees are
payable on the Company's investment in EIF Co Invest VII, while the
Company's indirect investment in RSB (through its interest in EIF)
attracts standard management and carried interest fee arrangements.
Through the above arrangements, and on a look-through basis, the
Company has a total of US$8.7m invested in RSB (at cost) compared
to the US$7.0m invested in RSB through EIF Co Invest VII.
Through the above arrangements, and on a look-through basis, the
fair value of the Company's total interest in RSB is 13.5 cents per
share; while the fair value of the Company's direct interest in RSB
(held through EIF Co Invest VII) is 10.7 cents per share. These
values represent a 1.0 times multiple over cost. The Fair Value of
the Company's interest in RSB is based on a valuation performed by
EIF's investment manager.
Table 2. Investments (Fair Values) As per LP reports RSB Gland Pro-forma
(EIF) (EIF)
------------------------------------ ------------------ -------- -------- ----------
US$'000 US$'000 US$'000 US$'000
Fund Investments
EIF (PE funds) 12,722 12,722
EIF (direct investments) 8,557 (1,789) (677) 6,091
EIF (other) 650 650
Direct Investments
RSB Group 6,916 1,789 8,705
Gland Pharma Limited 1,351 677 2,028
30,196 - - 30,196
------------------------------------ ------------------ -------- -------- ----------
Table 2 extracts the Company's "look through" interests in Gland
Pharma Limited ("Gland") and RSB (from EIF) and adds them to the
Company's direct interests in Gland and RSB (held by EIF Co Invest
X and EIF Co Invest VII respectively). On this basis, 35.5% of the
Company's Financial Assets at Fair Value (US$10.7m, equivalent to
16.6 cents per share), is accounted for by its interests in Gland
and RSB on an underlying pro-forma basis.
Table 2 further shows that 42.1% of the Company's Financial
Assets at Fair Value is accounted for by its interests in EIF's ten
PE fund investments, and a further 20.2% by its interests in EIF's
direct investments (excluding Gland and RSB).
Other matters
At the date of this report, net cash balances held by the
company amount to US$2.2m.
Our objective remains to realise assets at the appropriate time
and value, and to return the proceeds, less expenses, to our
shareholders.
On behalf of the Board of Directors, I thank all Shareholders
for their support.
Respectfully yours,
Rhys Cathan Davies
29 September 2015
For further information, please contact:
EIH PLC
Rhys Davies
Tel: +41 (0) 79 620 0215
Nplus1 Singer Advisory LLP (Nominated Adviser)
James Maxwell / Ben Griffiths
+44 (0)20 7496 3000
EIH PLC
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2015
For the period For the period
from 1 January from 1 January
2015 to 2014 to
30 June 2015 30 June 2014
Note US$'000 US$'000
------------------------------ ------ ---------------- ----------------
Income
Fair value movement
on investments at fair
value through profit
or loss 5 293 1,909
Net investment income 293 1,909
------------------------------ ------ ---------------- ----------------
Expenses
Administrative expenses (94) (113)
Legal and other professional
fees (108) (112)
Audit fees (23) (26)
Other expenses 1 -
Total operating expenses (224) (251)
------------------------------ ------ ---------------- ----------------
Profit before taxation 69 1,658
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Income tax expense - -
Profit after taxation
for the period 69 1,658
------------------------------ ------ ---------------- ----------------
Basic and fully diluted
earnings per share
(US cents) 6 0.11 2.57
------------------------------ ------ ---------------- ----------------
The accompanying notes form an integral part of these interim
financial statements.
EIH PLC
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2015
As at 30 As at 31
June December
2015 2014
Note US$'000 US$'000
------------------------------ ----- --------- ----------
Non-current assets
Financial assets at
fair value through
profit or loss 5 30,196 30,626
------------------------------- ----- --------- ----------
Total non-current
assets 30,196 30,626
------------------------------- ----- --------- ----------
Current assets
Trade and other receivables 28 21
Cash and cash equivalents 2,027 1,539
------------------------------- ----- --------- ----------
Total current assets 2,055 1,560
------------------------------- ----- --------- ----------
Total assets 32,251 32,186
=============================== ===== ========= ==========
Equity
Issued share capital 1,265 1,265
Share premium 26,595 26,595
Retained earnings 4,345 4,276
------------------------------- ----- --------- ----------
Total equity 32,205 32,136
------------------------------- ----- --------- ----------
Current liabilities
Trade and other payables 46 50
Total current liabilities 46 50
------------------------------- ----- --------- ----------
Total liabilities 46 50
------------------------------- ----- --------- ----------
Total equity and liabilities 32,251 32,186
=============================== ===== ========= ==========
The accompanying notes form an integral part of these interim
financial statements.
EIH PLC
UNAUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2015
Share Share Retained Total
capital premium earnings
US$'000 US$'000 US$'000
US$'000
----------------------- --------- --------- ---------- ---------
Balance at 1
January 2014 1,265 43,365 3,577 48,207
Total comprehensive
income
Profit for the
period - - 1,658 1,658
Transactions
with owners of
the company recorded
directly in equity
Return of capital - - - -
Balance at 30
June 2014 1,265 43,365 5,235 49,865
----------------------- --------- --------- ---------- ---------
Balance at 1
January 2015 1,265 26,595 4,276 32,136
Total comprehensive
income
Profit for the
period - - 69 69
Transactions
with owners of
the company recorded
directly in equity
Return of capital - - - -
Balance at 30
June 2015 1,265 26,595 4,345 32,205
----------------------- --------- --------- ---------- ---------
The accompanying notes form an integral part of these interim
financial statements.
EIH PLC
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2015
For the For the
period from period from
1 January 1 January
2015 to 2014 to
30 June 30 June
2015 2014
Note US$'000 US$'000
Cash flows from operating
activities
Profit before taxation 69 1,658
Adjustments:
Fair value movement on
investments at fair value
through profit or loss 5 (293) (1,909)
Operating loss before
working capital changes (224) (251)
(Increase)/decrease in
trade and other receivables (7) 37
Decrease in trade and
other payables (4) (62)
------------------------------- ----- -------------- -------------
Net cash used in operations (235) (276)
Net cash used in operating
activities (235) (276)
------------------------------- ----- -------------- -------------
Cash flows from investing
activities
Capital distribution received 5 723 452
Net cash generated by
investing activities 723 452
------------------------------- ----- -------------- -------------
Cash flows from financing
activities
Return of capital - -
------------------------------- ----- -------------- -------------
Net cash used in financing
activities - -
------------------------------- ----- -------------- -------------
Net increase in cash and
cash equivalents 488 176
Cash and cash equivalents
at 1 January 1,539 402
------------------------------- ----- -------------- -------------
Cash and cash equivalents
at 30 June 2,027 578
=============================== ===== ============== =============
The accompanying notes form an integral part of these interim
financial statements.
Notes to the Unaudited Interim Results
For the six months ended 30 June 2015
1 The Company
EIH PLC (formerly Evolvence India Holdings plc) was incorporated
and registered in the Isle of Man under the Isle of Man Companies
Act 1931-2004 on 10 November 2006 as a public company with
registered number 118297C. On 23 March 2011 the Company
re-registered under the Isle of Man Companies Act 2006.
Pursuant to a prospectus dated 19 March 2007 there was a placing
of up to 65,000,000 Ordinary Shares of GBP0.01 each. The number of
Ordinary Shares in issue immediately following the placing was
65,000,002. The shares of the Company were admitted to trading on
the Alternative Investment Market of the London Stock Exchange
("AIM") following the close of the placing on 23 March 2007.
The Company's agents perform all significant functions.
Accordingly, the Company itself has no employees.
2 Duration
The Company currently does not have a fixed life but the Board
considers it desirable that Shareholders should have the
opportunity to review the future of the Company at appropriate
intervals. Accordingly, at the annual general meeting of the
Company in 2018 a resolution will be proposed that the Company
ceases to continue as presently constituted. Shareholders holding
at least fifty one per cent of the shares must vote in favour of
this resolution for it to be passed. If the resolution is not
passed, a similar resolution will be proposed at every third annual
general meeting of the Company thereafter. If the resolution is
passed, the Directors will be required, within 3 months of the
resolution, to formulate proposals to be put to Shareholders to
reorganise, unitise or reconstruct the Company or for the Company
to be wound up.
3 Significant accounting policies
The principal accounting policies adopted in the preparation of
the financial statements are set out below.
3.1 Basis of presentation
These interim financial statements have been prepared in
accordance with International Financial Reporting Standard (IFRS)
IAS 34: Interim Financial Reporting. They do not include all of the
information required for full annual financial statements and
should be read in conjunction with the financial statements of the
Company for the year ended 31 December 2014. The interim financial
statements are unaudited.
The accounting policies adopted in the preparation of the
interim consolidated financial statements are consistent with those
followed in the preparation of the Company's annual financial
statements for the year ended 31 December 2014.
Notes to the Unaudited Interim Results
For the six months ended 30 June 2015 (continued)
3.2 Investments at fair value through profit or loss
Investments are designated as financial assets at fair value
through profit or loss. They are measured at fair value with gains
and losses recognised through profit or loss.
The Company's investments at fair value through profit and loss
comprise funds and co-investment vehicles, where fair value is
estimated by the Directors to be the Company's share of net asset
value per latest financial results reported by the underlying fund
administrator.
3.3 Segment reporting
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