SVG Capital 2014 final results

DividendMax Ltd.

SVG Capital 2014 final results

SVG Capital

Results for the 13 months to 31 January 2015

Fifth consecutive year of double digit returns

NAV per share growth of 14% to 588p

Continued strong performance of the investment portfolio

- 10% total return in the 13 months, despite the significant headwinds of foreign exchange

- In constant currencies the portfolio generated a total return of 17%

- Fifth consecutive year of double digit returns

Good progress on new investment strategy

- £467m committed to private equity since 2012

- Post-2012 investments now account for 24% of the investment portfolio

- Weighted average earnings and revenue growth of 12% and 10% respectively

$100m commitment to FFL, a leading US mid-market private equity investor

- Invests in lower middle market companies with a typical enterprise value of $100m to $500m

Record period for distributions - £330m in total

- In addition, £300m of distributions announced since 31 January

Good pipeline of new investment opportunities

- Expect to make at least one further commitment this year and further co-investments

£470m capital return target reached

- Further tender offer of up to £70m in May 2015, taking total capital returned since December 2011 to £540m, well in excess of target

- Pricing of the tender offer will be with reference to share price and adjusted 31 January 2015 NAV

- Will continue to return excess capital through share buybacks and tenders

Balance sheet remains strong and good coverage of £367m of uncalled commitments

Lynn Fordham, CEO of SVG Capital commented: "This is our fifth consecutive year of double digit growth with significant gains across the portfolio, despite the significant headwinds of foreign exchange. The period also marked a record year for distributions with £330 million of proceeds received from the portfolio. Against this we have paid £177 million of calls as the transition to post-2012 investments gathers pace. New investments now account for 24%[5] of the portfolio with a number of the investments reporting strong operating performance.

Since the announcement of the change of investment strategy in 2011 we have returned £470 million of capital to shareholders and committed £467 million to new private equity investment, balancing longer term net asset growth with efficient balance sheet management. The forthcoming tender offer of up to £70 million takes total capital returned to shareholders to well in excess of our £470 million target and we will continue to return excess capital to shareholders through share buybacks and tenders, dependent on market conditions and our investment pipeline."

Companies mentioned