LEI: 213800L5751QTTVEA774
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA OR ANY JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO
27 September 2022
MARWYN VALUE INVESTORS LIMITED (THE "COMPANY")
Unaudited Interim Results 2022
Marwyn Value Investors Limited announces the publication of its interim results for the six months ended 30 June 2022.
The Interim Results are available on the 'Annual Reports and Interim Results' section of the Company's website, http://www.marwynvalue.com/company-information/financial-reports.
SUMMARY PERFORMANCE
Ordinary Shares
|
| NAV Total Return1 | FTSE All-Share |
| Six months (to 30 June 2022) | (4.5)% | (4.6)% |
| Since inception (1 March 2006 to 30 June 2022) | 166.4% | 137.7% |
2016 Realisation Shares
|
| Shareholder Total Return2 | FTSE All-Share |
| Six months (to 30 June 2022) | (1.0)% | (4.6)% |
| Since inception (30 November 2016 to 30 June 2022) | (1.0)% | 30.5% |
2021 Realisation Shares
|
| Shareholder Total Return2 | FTSE All-Share |
| Six months (to 30 June 2022) | (4.6)% | (4.6)% |
| Since inception (30 November 2021 to 30 June 2022) | (1.4)% | (0.1)% |
Robert Ware, Chairman of Marwyn Value Investors Limited, commented:
"Against what is clearly a very challenging backdrop, I believe that the Manager's investment strategy, as a result of the patience and discipline shown in maintaining investible cash, means that the Company is very well positioned to take advantage of attractive market opportunities which may arise in 2022 and 2023."
KEY HIGHLIGHTS OF THE SIX MONTHS TO 30 JUNE 2022
Ordinary Shares
Net assets of £94.9 million, a decrease of £7.1 million since 31 December 2021 (including dividend distributions of £2.5 million)
· NAV per share of 171.0p as at 30 June 2022.
· Total NAV return of (4.5)% since 31 December 2021, compared to the FTSE All-Share performance of (4.6)%.
· Share price down 4.0p since 31 December 2021 to £1.15 as at 30 June 2022. Including dividends paid, this represents a share price total return of 0.5%. The share price discount to NAV was 34.7% as at 30 June 2022, a small decrease from 35.7% as at 31 December 2021.
Continued significant distributions
· Quarterly dividends of 2.265p per share paid in February, May and August 2022 with a further quarterly dividend of 2.265p expected to be paid in November 2022. Total dividend expected to be paid in 2022 of 9.06p per share represents a yield of 7.9% (based on the 30 June 2022 share price).
Strong cash position
· Look-through cash balance of £43.8m as at 30 June 2022.
2016 Realisation Shares
Net assets of £2.6 million, a decrease of £0.1 million since 31 December 2021
· NAV per share of 283.0p as at 30 June 2022.
· Total shareholder return of (1.0)% since 31 December 2021, compared to the FTSE All-Share performance of (4.6)%.
2021 Realisation Shares
Net assets of £632 thousand, a decrease of £30 thousand since 31 December 2021
· NAV per share of 175.3p as at 30 June 2022.
· Total shareholder return of (4.6)% since 31 December 2021, compared to the FTSE All-Share performance of (4.6)%.
Portfolio Highlights
Le Chameau has continued to perform well through the period, recording June YTD revenue ahead of budget and prior year. The company has been successful in enhancing its brand reach and engagement, with initiatives such as the recent launch of brand partnerships with Fairfax & Favor and LVMH-owned, Patou and wide-spread coverage of the brand in international media on a regular basis.
AdvancedAdvT's offer for M&C Saatchi reflects the significant potential that the AdvancedAdvT board sees for the post-acquisition group, should the offer complete. AdvancedAdvT remains extremely well capitalised with currently over £100m of investible cash, which given both Vin Murria's track record and the current market environment, should afford the company significant opportunities.
MAC II has appointed Mark Hodges as Chairman. Mark has over 30 years' experience across the financial services and consumer sectors, including extensive FTSE 100 PLC board experience with Centrica plc and Aviva plc and is currently non-executive Chairman of RSA. Previously the CEO of ReAssure, Mark led the business through the £425m acquisition of Quilter's UK Heritage business and oversaw the sale of ReAssure to Phoenix Group Holdings in 2020 for £3.25bn. At the time of the sale, ReAssure had approximately £80bn of assets under administration, 4 million customers and approximately 2,500 employees.
The company's investment strategy is to focus on opportunities generated through the interrelated themes of: (i) the changing profile and age composition of the UK population; (ii) the transfer of generational wealth within families and dependents; (iii) the extent of both financial and non-financial support provided by families, and (iv) the complexities arising from the concentration of family wealth and retirement assets in selected asset classes.
Our other acquisition vehicles are exploring a strong pipeline of potential Management Partners and acquisition opportunities.
VAT Reclaims
The first claims relating to a historic investment in Praesepe plc, which operates in the gaming industry, have been received in cash by the Master Fund and we remain positive about the outcome of the remaining claims being settled and subsequently enhancing the Company's NAV per share.
MANAGER OUTLOOK
We have maintained a significant cash weighting in the fund over the last few years and despite reviewing numerous investment opportunities, often for many months, our acquisition companies and Management Partners have resisted the temptation to invest capital at what we feel have been unacceptable valuations. We now have material investible capital, both in the fund structure and in the underlying portfolio vehicles and are now seeing more opportunities than ever.
The key for us investing going forward is simple. We look for experienced Management Partners and a broader team, the durability of the business model and businesses we buy, the structural tailwinds supporting the sector and our specific strategy and finally our visibility of how the business is going to capitalise on that opportunity and translate that into sustainable investment returns.
The coming period is without doubt going to be volatile and challenging but we are ideally positioned with material investible capital, a portfolio of exceptional Management Partners and a pipeline of similarly capable prospective ones.
Capitalised terms used in the announcement and not otherwise defined have the same meaning as detailed in the Company's unaudited interim results for the six months ended 30 June 2022.
1 For the ordinary shares, inception to date movement is based on the combined weighted average NAV of Marwyn Value Investors I, II and B shares prior to their amalgamation, using the conversion ratio published on 17 April 2008.
Total return assumes the reinvestment of dividends paid to shareholders into the Company at NAV and is calculated on a cum-income basis.
2 For the realisation shares, shareholder total return is calculated as the movement in total shareholder value, including all distributions made to realisation shareholders over the relevant period.
Company enquiries:
Company Secretary - Aztec Financial Services (Jersey) Limited
Magdala Mullegadoo / Chris Copperwaite
Telephone: 01534 833000
Investor Relations - Kam Bansil
Telephone: 020 7039 1901
Corporate Broker:
Chris Clarke / Owen Matthews
Liberum Capital Limited
Telephone: 0203 100 2200
Marwyn Value Investors Limited is a closed-ended investment company on the London Stock Exchange Specialist Fund Segment - a fully regulated market for professional, institutional and sophisticated investors. Current investments through its underlying funds include AdvancedAdvT Limited, the operating business of Le Chameau, Marwyn Acquisition Company plc, Marwyn Acquisition Company II Limited, Marwyn Acquisition Company III Limited, MAC Alpha Limited and Zegona Communications plc.
Cautionary Statement
This announcement contains forward-looking statements which are made in good faith based on the information available at the time of its approval. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievement of the Company to be materially different from those expressed or implied by these forward-looking statements.
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