AcenciA Debt Strategies Limited Half-year Report (8257O)
24 August 2017 - 4:00PM
UK Regulatory
TIDMACD
RNS Number : 8257O
AcenciA Debt Strategies Limited
24 August 2017
ACENCIA DEBT STRATEGIES LIMITED
(The "Company")
(Registered in Guernsey - Number 43787)
Registered Office:
Sarnia House, Le Truchot,
St Peter Port, Guernsey, GY1 1GR
Telephone: +44 1481 737600
Facsimile: +44 1481 749810
For immediate 24 August 2017
release
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Interim Results for the six months ended 30 June 2017
AcenciA Debt Strategies Ltd ("AcenciA" or the "Company"), the
closed-ended investment company listed on the London Stock
Exchange, today announces its unaudited interim results for the six
month ended 30 June 2017.
A full copy of the interim results can be accessed through the
link below:
Highlights
-- Net asset value ("NAV") per share at 30 June 2017 increased
by 3.72% to $1.65 and the share price increased by 10.32% to $1.58
(taking account of dividends paid in both cases)
-- An interim dividend of 2.89c was declared, representing an
annualised dividend yield of 3.6% based on the closing share price
of the Company of $1.60 on 22 August 2017.
Sub-Manager of Acencia, Saltus Partners commented; "Equity
markets continued their ascent in the first two quarters of 2017.
The S&P 500 put up its best first half since 2013 behind strong
fundamentals and continued outperformance by the technology sector,
in a growth environment that has kept the Fed on its rate--hiking
path. The Fed's quarter point rate hikes in March and June served
to further bolster confidence in the US economy's strength.
After an early year recovery and a subdued April and May, high
yield defaults spiked to US$3.5 billion in June. For 2017, US
defaults total US$9.5 billion with 16 in the energy sector and 7
each in retail, restaurants, and consumer products. The default
rate remained fairly constant at 2.0% (twelve month trailing high
yield bond par--weighted default rate). We believe market
conditions point to increasing headwinds for overleveraged capital
structures which will lead to a growing distressed opportunity
landscape. At the same time, supportive equity markets continue to
provide managers ample opportunities for profit realisation."
On the future of the company, William Scott, Chairman of
AcenciA, said; "The Board cannot be certain of the outcome of the
wind-up vote until it has happened. However, given that the votes
on the resolution are weighted such that only 25% of the votes cast
need be in favour of winding up for the resolution to be passed,
and based on soundings from significant shareholders, the Board
currently believes that it is likely to pass, and accordingly the
Interim Financial Statements have been prepared on a break-up or
"non-going concern" basis. This is very much an accounting
technicality resulting from the likelihood that the Company will be
liquidated within the next 12 months. It has had no impact on the
value of the assets and liabilities or the NAV per Ordinary Share
and, if shareholders chose not to wind up the Company, it would
have the ability to continue indefinitely in the absence of
unforeseen events."
For further information, please contact:
Saltus Partners LLP, Jon Macintosh
+ 44 20 7408 7765
Canaccord Genuity Limited, David Yovichic
+44 20 7523 8361
Kepler Partners LLP, Hugh van Cutsem
+44 20 3384 8796
Click on or paste the link below to your web browser, to view
the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/8257O_-2017-8-23.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFEETTIVFID
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