TIDMDIL
RNS Number : 2293R
Damille Investments Limited
15 November 2012
Damille Investments Limited
Interim Management Statement
Interim Management Statement for the period 1 July 2012 to 15
November 2012.
Overview
Damille Investments Limited (LSE:DIL) (the "Company" or "DIL")
is a Guernsey registered, closed-ended investment company which
listed on the Specialist Fund Market of the London Stock Exchange
and the Channel Island Stock Exchange on 30 March 2010 (the
"Admission Date").
The Company is pleased to announce that the unaudited Net Asset
Value ("NAV") per share as at 31 October 2012 was 60.79p. The NAV
as at 31 October 2012 is stated after returns of capital to
shareholders amounting to 68p per share (GBP24,309,320) to 31
October 2012. The Company has further announced a return of capital
to shareholders of 3p per share (GBP1,072,470) to be settled 30
November 2012 taking the total return to shareholders to 71p per
share (GBP25,381,790).
The NAV per share as at 31 October 2012 of 60.79p when combined
with the return of capital of 68p per share to 31 October 2012 is
an increase since Admission of 28.79%. This represents an increase
of 35.14% from the Initial NAV*. Compared to the NAV per share as
at 30 June 2012**, the NAV per share as at 31 October** has
increased by 20.57%.
The NAV is based on bid prices and shareholders should note the
wide spreads quoted on some of our key investments, including Rapid
Realisations Fund Limited, Loudwater Trust Limited and EIH plc and
that these funds trade at discounts to their own NAVs.
The directors are pleased with this performance.
* NAV at launch after costs.
**including distributions up to that date.
Investment Objectives and Policy
The investment objective of the Company is to invest in a
concentrated portfolio of equity securities of issuers primarily
with an equity market capitalisation of below GBP100 million that
the Company's Executive Directors, Brett Miller and Rhys Davies
(the "Executive Directors"), consider can be properly valued using
NAV valuation points. In the opinion of the Company, many of these
companies would benefit from implementing certain measures to
optimise their balance sheets and align management and shareholder
interests. Such companies are expected to be, but will not be
limited to, closed-ended investment funds and investment
companies.
The Company has a fixed life of four years from the Admission
Date and it firmly intends to return to shareholders the net
capital proceeds of all material profitable realisations from its
investments promptly following their receipt, subject to compliance
with The Companies (Guernsey) Law, 2008, as amended.
Financial Highlights and Investment Review by Damille Partners
Limited
During the period 1 July 2012 to 15 November 2012, the Company
invested GBP551,600 (before broking commissions) in one top up
investment in an existing holding. Two minor holdings were
partially disposed of realising small gains. In addition, the
Company received capital returns from investee companies during the
period amounting to GBP7,514,400.
The Company now holds notifiable shareholdings in four
companies, three of which the Executive Directors have sought and
obtained board representation. Brief summaries of the key
developments at these four companies during the period follow:
EIH plc ("EIH")
In April 2010, the Company acquired 11,450,000 shares in EIH.
The Executive Directors as well as one other individual were
appointed to the board of EIH on 17 May 2010, replacing the
previous board in its entirety. At the Annual General Meeting of
EIH held on 28 June 2010 a new investment policy was adopted as
follows:
"The Company shall not make any new investments, save for
commitments already entered into. The Company will actively manage
its investments and seek to realise such investments in a managed
way at an appropriate time, returning proceeds to Shareholders as
soon as practicable"
Since the Company acquired its shareholding in EIH, EIH has
returned capital of US$0.21 per share.
As at 14 November 2012 the share price of EIH was US$0.52 versus
cost to the Company of US$0.29 after the US$0.21 per share capital
distributions.
Rapid Realisations Fund Limited ("RRF")
The Company acquired 10,000,000 shares in RRF on 26 May 2010 and
immediately thereafter sought to change the investment strategy and
seek board representation. On 25 June 2010 the Executive Directors
were invited to join the board and as of today's date the board of
RRF is comprised of Brett Miller, Rhys Davies and one independent
director. Also on 25 June 2010, the RRF board announced that it had
resolved to adopt the following policies which were subsequently
approved by RRF shareholders via a resolution at the Annual General
Meeting of RRF held on 14 September 2010:
"The investment objective and policy of the Company be amended
to manage the realisation of the Company's investment portfolio and
to maximise the return of invested capital to shareholders during
the period ending on 30 September 2013. During this period the
Company shall not make any new investments."
During the period RRF announced returns of capital amounting to
2p per RRF share.
DIL paid 46.02p per share on 26 May 2010 and by 14 November
2012, RRF had announced capital distributions amounting to 71p per
share. As at 14 November 2012 the share price of RRF was 7.0p.
Blackstar Group SE ("Blackstar")
In March 2011, DIL acquired 5,820,000 shares in Blackstar
representing approximately 7.78 % of the issued share capital of
Blackstar. The average price paid was 77.05p per share. In February
2012, DIL acquired a further 3,000,000 shares at an average price
of 73.625p per share.
On 8 November 2012, Blackstar announced that its net asset value
per share as at 31 October 2012 was 102p per share.
On 12 October 2012 the Company submitted a requisition for an
EGM of Blackstar to be held so shareholders can vote on 2
resolutions - the first resolution calls for no new investments to
be made until Blackstar tenders for 15% of its issued share capital
at a discount of not more than 10% and the second resolution calls
for Blackstar to adopt a new distribution policy whereby if the
discount exceeds certain thresholds excess cash is distributed to
shareholders.
Blackstar's shares were quoted at 73p per share at close of
business on 14 November 2012. The average cost per Blackstar share,
taking into account dividends to date is 71.28p.
Loudwater Trust Limited ("LWT")
On 24 March 2011, DIL acquired 16,650,000 shares in LWT,
representing 27.64% of the issued share capital of LWT. The price
paid was 30p per share. On 5 July 2012, DIL acquired a further
1,000,000 shares at 55.16p per share. DIL now holds 29.3% of the
issued share capital of LWT.
LWT's investment policy is to return cash proceeds of all
realisations to investors, subject to the retention of sufficient
cash for follow-on investments in existing portfolio companies
where the Investment Adviser believes further funding is
required.
The Executive Directors of DIL were appointed to the board of
LWT on 20 May 2011. On 27 April 2012 four other directors of LWT
resigned and the board is now comprised of Brett Miller, Rhys
Davies and an independent director.
During the period LWT announced a return of capital of 39p per
LWT share.
LWT's shares were quoted at 30p per share at close of business
on 14 November 2012. The cost to DIL of acquiring its holding in
LWT was GBP5,546,600 (before broking and commission). To date, DIL
has received capital returns of GBP9,252,795 from its holding.
Trinity Capital plc ("Trinity")
In October and November 2010, DIL acquired a total of 5,618,000
shares in Trinity at an average price of 64.25p per share (before
broking costs). On 7 March 2012, DIL acquired a further 3,000,000
shares at an average price of 16p per share.
On 24 March 2009, Trinity's shareholders approved the following
investment policy:
"The Company shall promptly but having due regard to all
applicable legal, governmental and regulatory constraints and with
a view to maximising shareholder value, dispose of all its assets
in an orderly fashion.
If the Company's Ordinary Shares are trading at a price below
the NAV per Ordinary Share, the Company shall immediately affect a
return of capital through a cash distribution to Shareholders.
The Company shall continue to seek new investment opportunities.
If the Company's Ordinary Shares are trading at a price above the
NAV per Ordinary Share, the Board will selectively determine, on a
periodic basis, whether or not to make new investments."
On 12 October 2012, Trinity announced that it had disposed of
its holding in DB Realty Ltd by for consideration amounting to
approximately GBP 12.1 million at then current exchange rates.
Trinity's shares were quoted at 10p per share at close of
business on 14 November 2012 versus an average cost to DIL of 9.64p
after adjusting for the 37.8 pence per share received in returns of
capital.
Outlook
The Company has invested 94.87% of the net funds raised and,
apart from the slim possibility of follow on investments, the
investment period is now concluded and the focus is firmly on
realisations and maximising the cash returns from the existing
investment portfolio.
Whilst market conditions are extremely uncertain and thus don't
provide the best background for realisations, the directors believe
that most of the key investments outlined above were bought well,
and have largely performed relatively well, and the directors
expect further distributions from those companies in the next six
months which in turn will be passed on to the Company's
shareholders.
Investment Allocation
At 31 October 2012, the Company's assets were allocated in the
following approximate proportions:
Notifiable shareholdings: 54.63% of NAV:
8,820,000 shares in Blackstar Group SE: 10.06%
17,650,000 shares in Loudwater Trust Limited: 20.12%
11,450,000 shares in EIH plc: 13.05%
10,000,000 shares in Rapid Realisations Fund Limited: 11.40%
Non-Notifiable shareholdings: 13.73% of NAV:
8,618,000 shares in Trinity Capital plc: 9.83%
3,425,000 shares in Dragon Ukranian Properties: 3.90%
Other non-notifiable holdings: 30.41% of NAV
Cash: 1.22% of NAV
This document is for information purposes only. It is not, and
is not intended to be an invitation, inducement, offer, or
solicitation, to deal in the shares of the company. The price of
shares in the company and the income from them may go down as well
as up and investors may not get back the full amount invested on
disposal of shares in the company. An investment in the company
should be considered only as part of a balanced portfolio of which
it should not form a disproportionate part.
By order of the Board
Damille Investments Limited
Administrative Enquiries: Shareholder Enquiries:
Anson Fund Managers Limited Nimrod Capital LLP
Tel: +44(0)1481 722260 Tel: +44(0)20 3355 6855
15 November 2012
E&OE - In Transmission
END OF ANNOUNCEMENT
This information is provided by RNS
The company news service from the London Stock Exchange
END
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