Honeycomb Investment Trust PLC NAV and Monthly Update - January 2021 (0985R)
March 04 2021 - 2:00AM
UK Regulatory
TIDMHONY
RNS Number : 0985R
Honeycomb Investment Trust PLC
04 March 2021
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4 March 2021
Honeycomb Investment Trust plc
Honeycomb Investment Trust plc (the "Company") announces that
the Investment Manager's monthly factsheet for 31 January 2021 is
now available on its website at http://www.honeycombplc.com .
Net Asset Value per Share
The Company announces that its unaudited Net Asset Value ("NAV")
per share as at 31 January 2021 on a cum-income basis was 1,019.9
pence, based on a NAV of GBP359.6 million, and on an ex-income
basis was 1,017.9pence, based on a NAV of GBP358.9 million. The
NAVs have been calculated by Apex Fund Services (UK) Ltd.
Following on from a successful quarter end, Honeycomb Investment
Trust plc (the "Company" or "HONY") delivered a NAV return of 0.67%
for the month of January, which is equivalent to 7.9% per
annum.
Portfolio Performance
2020 was a challenging year across all sectors, as businesses
adjusted to the Covid-19 pandemic and ensured they had the
necessary provisions in place to cushion the impact. The Investment
Manager made the decision early on in the pandemic to ensure cash
collection and proactive portfolio management took centre-stage and
to ensure a robust performance for shareholders, and the continued
delivery of both a strong NAV performance and dividend payment.
Following a successful 2020, this resulted in a strong start to the
year for HONY, with NAV returns back to pre-Covid levels in January
following similar performance in Q4 2020.
The performance was driven by strong investment yield of 10.1%
per annum, coupled with low impairment charges of 0.2% per annum.
The modest impairment charge is supported by the Manager's
senior-secured strategy that protects the Company from
underperformance in the asset base.
Whilst the investment assets were broadly flat month on month at
GBP572m, a new senior facility to finance credit card receivables
was signed in January that is expected to draw over the coming
months. The facility offers an expected IRR in excess of 10% and
good downside protection through a conservative LTV. Additional
senior loans were added in the property sector, where the
Investment Manager believes security and leverage ratios continue
to offer a compelling risk-adjusted return for shareholders.
The pipeline of new potential investments remains strong with
non-bank lenders seeing opportunities to grow and take market share
from traditional banks. The Covid-19 pandemic has further
accelerated this structural change and the Company continues to aim
to be the market leading finance partner to the non-bank
sector.
This document is made available for information purposes only
and does not contain any representations or constitute an offer to
sell or the solicitation of an offer to acquire or subscribe for
any securities of the Company. All investments are subject to risk.
Prospective investors are advised to seek expert legal, financial,
tax and other professional advice before making any investment
decision. The value of investments may fluctuate and past
performance is no guarantee of future results.
For further information about this announcement please
contact:
Pollen Street Capital - Investment Manager
Matthew Potter / Julian Dale: +44 (0)20 3728 6750
Liberum Capital Limited - Joint Broker
Chris Clarke / Louis Davies: +44 (0)20 3100 2000
Cenkos Securities plc - Joint Broker
Justin Zawoda-Martin: +44 (0)20 7397 8900
Link Company Matters Limited - Corporate Secretary
Paul Johnston: +44 (0)20 7954 9552
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