Marwyn Value Investors Limited audited financial statements - 31 December 2009 - Regulatory Release
Report of the Chairman
I am pleased to present to the shareholders the Annual Report and audited Financial Statements of the Company. The Company has delivered a strong performance for the twelve months ended 31 December 2009, posting an increase in the net asset value of the Ordinary shares of 31% from £56.6m to £74.3m and a 152% increase in the share price over the year.
In recognition of the performance for the year, Marwyn Value Investors L.P. was awarded Best Event Driven Fund, 2010 by two separate industry publications, Hedgeweek and HFM Week.
Given the positioning of the portfolio companies, set out in the Report of the Investment Manager below, the low overall leverage at portfolio company level and the strength of the incumbent management, I remain confident your Company will continue to deliver strong returns. I am particularly encouraged by opportunities emerging for our portfolio companies from the challenging economic environment and I look forward to reporting on our progress in our next report to shareholders.
On 8 July 2009, the Company completed its planned reorganisation and subsequent migration to the Cayman Islands. This was to allow for the introduction of an innovative exchange procedure to address the issue of the discount of the Company's share price to its Net Asset Value ("NAV"). This exchange mechanism enables investors to transfer their interests freely between the Company, the Master Fund and an unlisted feeder fund (Marwyn Value Investors (Pte) Limited).
Ordinary Shares
The reorganisation was accompanied by a change in investment policy and a new incentive arrangement. As a result no further investments (other than follow-on investments in the existing portfolio companies) can be made using available cash. The existing portfolio of investments will be managed to maximise returns by making distributions to investors as investments are realised. Following the introduction of these measures the discount of the share price to NAV has reduced from 65.2% as at 31 December 2008 to 33.1% as at 31 December 2009.
In August 2009, the Master Fund sold its first position since the restructuring of the Company, in Concateno Plc, and distributed the excess proceeds of £9,999,000 to the shareholders through the Partial Offer.
B shares
On 30 November 2009, the Company launched the B class of Ordinary shares which increased in net asset value by 27.9% in December. Through its investment in the Master Fund, the new class is wholly invested in the investment companies Marwyn Capital I Ltd, which will focus on the media, business and support services and industrial sector, and Marwyn Capital II Ltd which will focus on the healthcare, testing and inspection and leisure sectors. Neither have yet undertaken a transaction.
Investment Performance
A summary of the returns against various benchmarks for the period and from inception is set out below:
Ordinary Shares
The NAV per Ordinary share of the Company increased during the period by 21.5 pence to 90.44 pence, a rise of 31.2%.
* Illustrative performance taking into account the performance of the respective share classes prior to the amalgamation and the impact of the amalgamation. If issue costs are taken into consideration the equivalent performance would be 10.6%
B Ordinary Shares
The NAV per B Ordinary share of the Company increased during the period by 25.6 pence to 117.5 pence, a rise of 27.9%.
*The calculation is based on capital raised net of issue costs. If issue costs are taken into consideration the equivalent performance would be 17.5%.
Robert Ware
Chairman
26 April 2010
To download the full results please visit Marwyn Value Investors Limited
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