Candover NAV drops as it pays down debt

Candover Investments issued its preliminary unaudited results for the year to31 December on Friday, with a net asset value per share of 163p, which represented a 10% increase over the second half, but a 33% decrease compared to the prior year.

The London-listed form said aggregate losses on disposals and portfolio valuation declines totalled £13.7m, while sterling weakness relative to the euro benefitted net asset value by 26p per share.

Proceeds from realisations during the year were £30.1m, with a further £16.7m of realisations announced post year end.

Net debt decreased to £13.7m at year end, from £33.2 million, which the board said reflected realisation proceeds, offset by accrued financing costs together with an adverse foreign currency movement of £2.5m.

“Following the portfolio realisations in 2016 and in the first months of this year, we have entered a new phase,” said CEO Malcolm Fallen.

“For the first time since 2007, the company is no longer indebted.

“The timing of the disposal of the Parques investment, the paydown of our current debt facilities and the potential distribution of value to shareholders are the key matters under consideration.”

Fallen said In addition, the board was exploring whether Candover’s accumulated tax losses represented a future realisable asset.

“Over the coming months, we will ensure this next phase of the run-off is completed in a timely and efficient way.”