- As at 31 March 2017, NAV per share (NAV/s) stood at PLN 17.74, as compared with PLN 17.75 at the end of 2016.
- As at 31 March 2017, the value of MCI’s assets was PLN 1.328 billion.
- In 2017, the company used approx. PLN 57.64 million for the buyback of own shares.
- Net profit amounted to PLN 10.65 million and the return on investment was PLN 14.66 million.
– The funds in which we invest generated positive rates of return in the first quarter, and I believe they have a good outlook for the whole of 2017. We are also maximising the use of free cash to finance buybacks. Repurchasing own shares is a key method we use to build the value of MCI, as we do it with about 50% discount vs. the 12-month NAV (on a run rate basis) – said Tomasz Czechowicz, President of the Management Board of MCI Capital S.A.
The value of MCI’s assets at the end of March 2017 was PLN 1.328 billion. The net asset value per share at the end of Q1 was PLN 17.74, as compared with PLN 17.75 at the end of 2016. Q1 ended with a return on investment of PLN 14.66 million and a net profit of PLN 10.65 million. This performance is an effect of the higher value of investment certificates in all the Funds whose certificates are held by MCI. The total increase was PLN 19.12 million. The results were adversely affected by the MCI’s holdings in Private Equity Managers shares, whose value fell by PLN 2.37 million.
Initiated in Q3 2016, the buyback of own shares for cancellation was continued during the first months of the year. In the same quarter, PLN 11.13 million was spent for this purpose, with 1,257,660 own shares repurchased at an average price of PLN 8.82 per share. In April, MCI acquired 4,641,424 own shares, accounting for a 7.90% stake in its share capital. As at 30 May 2017, MCI had a total of 5,899,084 own shares, representing over 10% of its share capital. In accordance with the buyback schedule, in the whole of 2017 the company may spend approx. PLN 70 million on repurchasing own shares. About PLN 57.64 million has been used for the share buyback completed this year.
Development of MCI.CreditVentures
In January 2017, The MCI.CreditVentures fund (Fund), took part in the financing round for the acquisition of Allegro by the Cinven, Permira and Mid Europa Partners consortium. The fund provided financing of PLN 50 million in the form of junior debt.
In March, the Fund exited from its first mezzanine investment into Spearhead. This was a EUR 10m transaction commenced in 2015. In addition to the Fund, participating in the financing round were also the European Bank for Reconstruction and Development and Mezzanine Management. Spearhead is one of the biggest agricultural producers in the EU (the company operates in the UK, Poland, Romania, Czech Republic and Slovakia). The total rate of return on exit from this investment was 15%.