ACP Capital News - 2010

25 January 2010

ACP Capital Limited (the "Company" or “ACP”: AIM: APL) today announces its unaudited, indicative portfolio values and cash balances as at 31 December 2009 were as follows:

Portfolio 31 December 2009 30 September 2009
  GBP’000 GBP’000
ACP Mezzanine Ltd * 7,390 16,438
IFR syndicated loans 29,758 30,287
IFR pref equity - 13,687
IFR equity 167 6,609
Leasecom equity 17,738 18,320
Other equity investments 3,843 5,563
CDO, CLO and other investments - 720
  58,896 91,624
Less: effect of IFR loan hedging agreement (6,780) (7,577)
Total portfolio assets 52,188 84,047
Cash balance 5,145 3,897

This reduction in the indicative value of the portfolio since 30 September 2009 reflects:

  • The disposal of all of its preference shares in IFR Jersey Limited and 58,562,862 ordinary shares in IFR Capital plc ("IFR");
  • The fall in the ACP Mezzanine Limited (“ACPM”) share price of Eurocents 7.5 to Eurocents 6.5 as at 31 December 2009 (30 September 2009: Eurocents 14.0); it should be noted that ACP received capital repayments equivalent to Eurocents 26.55 per ACPM share during the period;
  • An adverse price movement of £0.8 million (0.8%) on portfolio holdings excluding ACPM;
  • An adverse foreign exchange movement of £1.35 million (1.6%).

As a result of the disposal of a significant proportion of the portfolio and the capital distributions equivalent to £30.81 million received from ACPM in the period, the Company has made two capital distributions to shareholders in the quarter totalling £66.36 million (equivalent to 31.85p per ACP share).

The significant events since 30 September 2009 are summarised below:

  • On 25 November 2009, the Company sold all of its preference shares, including its entitlement to accrued dividends, in IFR Jersey Limited, a wholly owned subsidiary of IFR, and 58,562,862 ordinary shares in IFR for a total of €36.2 million in cash. Their aggregate book value as at 30 September 2009, including accrued dividends, was €28.3 million;
  • On 25 November 2009, ACP, along with its subsidiary ACPM, settled all outstanding litigation with IFR without any admission of liability and with each party bearing their own costs;
  • On 27 November 2009, a further return of capital of 5.05 pence per share was made to shareholders;
  • On 14 December 2009, the Company sold its entire portfolio of CDOs and CLOs for £0.91 million. The carrying value of these investments as at 30 September 2009 was £0.72 million;
  • On 24 December 2009, a further return of capital of 26.80 pence per share was made to shareholders.

ACP Investment Management Limited, a wholly owned subsidiary of ACP, received notice from ACPM to terminate the Investment Management Agreement dated 20 July 2006 on 3 December 2011.

Notes:

  1. (*) The Company owns 54.37% of 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 6.5 Eurocents per share as at 31 December 2009 (30 September 2009: 14.0 Eurocents per share).
  2. (**) Indicative prices do not necessarily reflect the realisable value of such investments.
  3. (***) The Company has no borrowings.

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