SVG sees NAV decline in third quarter

Private equity investor SVG Capital, which achieved decent growth in its net asset value (NAV) in the first half, saw it head the other way in the third quarter.

Private equity investor SVG Capital, which achieved decent growth in its net asset value (NAV) in the first half, saw it head the other way in the third quarter.

NAV per share was 361.8p in the three months to September 30th, down 4.4% on the quarter. Combined with NAV growth of 12.3% in six months to June 30th, the year-to-date NAV growth was 7.3%.

However, since the quarter-end, positive movements in the quoted portfolio have added £21.3m, equal to 8.0p per share, taking the roll-forward NAV to 369.8p as at October 18th.

SVG said: "We have continued the active management of the balance sheet, concentrating on potential future incremental returns from the more mature assets with reference to our long term public market outperformance target and alternative uses of capital, including buying back our shares in the market."

However, the company said that remains cautious about its outlook: "Visibility of the operating environment is limited and macro-economic concerns remain prominent."

SVG realised £102.1m of proceeds during the three-month period, including £70.8m from the partial realisation of Galaxy Entertainment Group after Permira IV, in which SVG has holdings, sold a 53% stake in the Hong Kong-listed casino and hotel operator.

There was a negative total return of 1.5% in its investment portfolio during the third quarter with foreign exchange and a 12% decline in Hugo Boss's share price largely behind the result.

Net debt fell to £136.5m in the quarter, bringing the net debt as a percentage of shareholders' funds down from 19.3% at the half to 13.5%.

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023