Trading Update

22 October 2009

ACP Capital Limited (the "Company" or “ACP” : AIM: APL) today announces its unaudited, indicative portfolio values as at 30 September 2009.

Sterling exchange rates have moved from EUR 1.1760 / GBP to EUR 1.0917 / GBP between 30 June 2009 and 30 September 2009. As at 30 September 2009, approximately GBP 60.7 million equivalent of the indicative value of portfolio assets were EUR denominated and unhedged. During the three month period, there was a favourable net foreign exchange movement of £4.1 million.

The indicative value of the portfolio, together with the cash balances, as at 30 September 2009, was as follows:

 

30 September    2009

30 June    2009

Portfolio

GBP’000s

GBP’000s

 

 

 

ACP Mezzanine Limited*

16,438

13,352

IFR Syndicated Loans

30,287

27,516

IFR Pref. Equity

13,687

12,706

IFR Equity

6,609

10,353

Leasecom Equity

18,320

17,007

Other Equity Investments

5,563

4,366

CDO/ CLO and Other Assets

720

1,619

 

91,624

86,919

Less: effect of IFR Syndicated Loans hedging agreement**

(7,577)

(5,163)

Total Portfolio Assets ***

84,047

81,756

Cash Balance

3,897

2,006

On 10 July 2009, the Company sold its £3.750 million participation in a loan agreement in George Mezz Limited for £1.612 million. The sale price represented a 23% premium to book value as at 30 June 2009.

*The Company owns 54.37% of ACP Mezzanine Limited (“ACPM”) and accounted for ACPM as a subsidiary within the consolidated results of the Company for the year ended 31 December 2008. For the purposes of this quarterly portfolio update, the Company's investment in ACPM has been included at ACPM's bid price of 14.0 euro cents per share as at 30 September 2009 (30 June 2009: 12.0 euro cents per share).

** Pursuant to the syndicated loan hedging agreement announced on 29 April 2009, the value of the IFR Syndicated Loans at 30 June 2009 was reduced by £7.577 million (30 June 2009: £5.163 million).

*** Excludes accrued interest and income.

Indicative prices do not necessarily reflect the realisable value of such investments.

Investment Policy for the purpose of the AIM Rules.

ACP manages and holds investments and funds/vehicles in niche product sectors. The Investing Policy of the Company and its subsidiary (together the “Group”) is to realise the Group's investment portfolio as opportunities arise and to distribute the net proceeds arising to shareholders. It is intended that such distributions will, where possible, be in the form of capital.

The Group does not take part in the day to day management of the underlying investments and does not intend to make further investments other than current portfolio companies in order to seek to protect or enhance the Company’s shareholder value. The Group has no maximum exposure limits with respect to individual portfolio investments.

Under the Articles, the net borrowings of the Group must not exceed an amount equal to three times the “adjusted equity shareholders’ funds” (as defined in the Articles). It is the current intention of the Directors that Group companies will not take on borrowings. However, portfolio investments themselves may be leveraged.

The Company has no other investment restrictions.

Enquiries

  • Hugh Field/Bruce Garrow, Collins Stewart Europe, +44 (0) 207 523 8350 (Nominated Adviser)
  • Tim McCall/Barnaby Fry, Hogarth Partnership, +44 (0) 207 357 9477