UNIVERSAL PARTNERS LIMITED – UPL : Summarised audited financial statements for the year ended 30 June 2019

2019/09/11 13:59:58
SENS announcement for JSE listed company: UPL
                        

UPL : Summarised audited financial statements for the year ended 30 June 2019: https://senspdf.jse.co.za/documents/2019/jse/isse/uple/FY19Result.PDF
Summarised audited financial statements for the year ended 30 June 2019

UNIVERSAL PARTNERS LIMITED
(Incorporated in the Republic of Mauritius)
(Registration number: 138035 C1/GBL)
SEM share code: UPL.N0000
JSE share code: UPL
ISIN: MU0526N00007
(‘Universal Partners’ or ‘the Company’)

SUMMARISED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

Year ended Year ended
30 June 2019 30 June 2018
Net asset value per share (‘NAV’) GBP 1.143 1.032
Profit for the year GBP 8 034 051 3 457 404
Earnings per share pence 11.10 4.78
Headline earnings per share pence 11.10 4.78

Universal Partners has a primary listing on the Official Market of the Stock Exchange of Mauritius Ltd
(‘SEM’) and a secondary listing on the Alternative Exchange of the JSE Limited (‘JSE’).

The principal activity of the Company is to hold investments in high quality, growth businesses across
Europe, with a particular focus on the United Kingdom (‘UK’). The Company’s investment mandate
also allows up to 20% of total funds at the time an investment is made to be invested outside of the
UK and Europe.

The Company’s primary objective is to achieve strong capital appreciation in Pounds Sterling
(‘GBP’) over the medium to long-term by investing in businesses that meet the investment criteria
set out in the Company’s investment policy.

The Company has completed five investments since its listing up to the reporting date and
continues to build a pipeline of new investments.

Financial review

For the year under review, interest income included interest earned from providing short-term
bridging loans to investee companies as well as interest earned from investing excess cash in interest
bearing fixed deposits for periods of up to six months. The deposited funds will remain in short-term
fixed deposits, money market and NCD instruments until such time as they are required for
investments in accordance with the Company’s investment policy.

Interest earned for the year amounted to GBP 289,110 which included interest of GBP 123,984
earned from cash balances and GBP 165,126 earned from providing short-term bridging loans. All
loans were repaid in full during the year except for the loan to YASA that was repaid on 19 August
2019, subsequent to the Company’s year-end.

The valuations of the Company’s investments have been assessed at 30 June 2019 and the
Company has recorded a net unrealised gain on revaluation of its investments of GBP 10,241,580
for the year under review.

During the year under review, the Company revalued its investment in Dentex as a result of a
successful capital raise by Dentex in February 2019 at a price of GBP 1.70 per share. The revaluation,
together with the additional investment made of GBP 4,981,733, has brought the total value of the
Company’s investment in Dentex to GBP 30,060,988.

The investment in YASA was revalued by GBP 7,663,471 to reflect a total investment of GBP
18,949,329. The revaluation equates to a price of GBP 386.95 per share at which YASA concluded a
further capital raise subsequent to the end of the reporting period and is the price at which the
Company invested a further GBP 3,000,023. Firm commitments to support this capital raise were
received from current and new investors prior to the Company’s year-end and all amounts
committed have been received by YASA in August 2019.

The performance of Propelair and its ability to generate future profits is of concern to the Company.
Accordingly, the investment in Propelair has been impaired by GBP 1,404,983 and is reflected at a
nominal value of GBP 1 at the reporting date.

The Company’s investment in SC Lowy is reflected at its original cost and is denominated in US
Dollars (‘USD’). During the year, the translation effect of exchange rate movements between the
USD and the GBP resulted in a foreign exchange gain of GBP 403,458.

Management fees paid during the year amounted to GBP 1,200,809, incurred in terms of the
investment management agreement between the Company and Argo. Transaction costs of GBP
2,000, relating to the acquisition of JSA in the prior year, were incurred during the current year.
Further, general and administrative expenses amounting to GBP 334,441 were incurred. The accrual
for performance fees calculated on the revaluation of the Company’s investments amounted to
GBP 1,499,096 for the year. These fees, which are recalculated quarterly, may become payable to
Argo in the event that the Company realises the expected profit on disposal of the investments,
and does not accrue, or become payable, to Argo prior to the Company exiting the underlying
investments on which it is calculated.

Short-form announcement
This short-form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement and accordingly does not contain full or complete details.
The full announcement was published on SENS on 11 September 2019, and can be found on the
Company’s website www.universalpartners.mu and can be accessed using the following JSE link
https://senspdf.jse.co.za/documents/2019/jse/isse/UPLE/FY19Result.pdf.

Any investment decisions by shareholders and/or investors should be based on the full
announcement released on SENS and published on the Company’s website.

Copies of this report are available to the public, free of charge, at the registered office of the
Company, c/o Intercontinental Trust Limited, Level 3 Alexander House, 35 Cybercity, Ebene 72201,
Mauritius.

Copies of the statement of direct or indirect interest of the Senior Officers of the Company pursuant
to rule 8(2)(m) of the Securities (Disclosure of Obligations of Reporting Issuers) Rules 2007 are
available to the public upon request to the Company Secretary at the Registered Office of the
Company at c/o Intercontinental Trust Limited, Level 3 Alexander House, 35 Cybercity, Ebene 72201,
Mauritius. The Board of Universal Partners accepts full responsibility for the accuracy of the
information in this communique.

No dividends were declared in the current or prior interim period. This is in line with the Company’s
investment strategy to achieve long-term growth in NAV.

The Board of Universal Partners accepts full responsibility for the accuracy of the information
contained in this announcement.

By order of the Board
Mauritius – 11 September 2019

Company Secretary
Intercontinental Trust Limited

For further information please contact:

JSE sponsor
Java Capital
Tel: +2711 722 3050

SEM authorised representative and sponsor
Perigeum Capital
Tel: +230 402 0890

Company secretary
Intercontinental Trust Ltd
Tel: +230 403 0800

Date: 11/09/2019 02:00:00
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