TIDMEIH
RNS Number : 1916O
EIH PLC
30 September 2019
30 September 2019
EIH PLC
("EIH" or the "Company")
Interim Results
The Company announces its interim results for the six months
ended 30 June 2019. A copy of this announcement will shortly be
made available for inspection on the Company's website at
www.eihplc.co.uk.
Chairman's Statement
The Company made a net loss of US$0.4m for the six month period
to 30 June 2019 (six month period to 30 June 2018: net loss
US$3.3m), the loss per share for the six month period to 30 June
2019 was 0.66 cents (six month period to 30 June 2018: loss per
share 5.08 cents).
The unaudited net assets of the Company as at 30 June 2019 were
valued at US$10.1m and therefore net asset value ("NAV") per share
at that date was 15.6 cents based on 64,500,002 ordinary shares in
issue (31 December 2018 NAV per share: 26.3 cents).
The Company currently expects to receive a distribution of
approximately US$0.9m from Evolvence India Fund PCC ("EIF") in
October 2019.
Under the agreement for the disposal of its shareholding in RSB
Group ("RSB"), which was held through EIF Co Invest VII, the
Company received sale proceeds on 10 April 2019 of US$5.24m from
its disposal of its shareholding in RSB, held through EIF Co Invest
VII, and a further US$1.56m on 24 April 2019 as a distribution from
EIF in respect of the disposal of its indirect shareholding in RSB,
held through EIF.
Subsequently, on 23 April 2019, the Company made a capital
distribution of 8.0 cents per share to shareholders on the register
as at the close of business on 12 April 2019, equivalent to
approximately US$5.16m. On 24 May 2019, the Company made a further
capital distribution of 2.0 cents per share to shareholders on the
register as at the close of business on 17 May 2019, equivalent to
approximately US$1.29m.
While the NAV per share decreased by 40.7% in the period under
review, adjusting for the aforementioned capital distributions made
during the period, the Company's NAV decreased by 2.7% in the six
months ended 30 June 2019. It is noted that the Indian Rupee
("INR") strengthened by 1.2% in value against the US Dollar during
the period in review.
Total operating costs during the period were US$0.30m.
The Company's investment portfolio comprises the following
(based on unaudited values as at 30 June 2019):
Table 1. Investments Capital Commitment Capital Invested Capital Fair value Fair Value
Distribution Adjustment
--------------------- ------------------- ----------------- -------------------- -------------------- -----------
US$'000 US$'000 US$'000 US$'000 US$'000
Fund Investments
(equity)
Evolvence India Fund
PCC 45,120 45,120 (32,235) (3,493) 9,392
45,120 45,120 (32,235) (3,493) 9,392
--------------------- ------------------- ----------------- -------------------- -------------------- -----------
Further details on the Company's investment portfolio are set
out below and in Note 5 to the interim financial statements.
EIF
As at 30 June 2019, the fair value (unaudited) of the Company's
investment in EIF was US$9.4m, equivalent to 14.6 cents per share.
EIF is now fully drawn down.
Based on the latest valuations available and adjusting for
distributions made during the period, the fair value of EIF's
underlying funds decreased by approximately 0.1% in US Dollar
terms, while their value decreased by approximately 1.3% in INR
terms. On the same basis of measurement, the value of EIF's direct
investments decreased by approximately 0.4% in US Dollar terms,
whilst in INR terms this equated to a decrease of approximately
1.3%.
EIF's private equity fund exposure is weighted towards funds
with vintages of 2006 and later. The three funds of these vintages,
EIF's three largest funds, comprise 73.6% of EIF's private equity
fund weighting. The remaining five funds, with a 26.4% weighting,
are all 2004 and 2005 vintages. EIF's eight underlying private
equity funds have fully drawn down their committed capital from
EIF.
The Directors have reviewed certain underlying financial
information provided to us by EIF's Investment Manager and we
remain confident that as EIF's underlying portfolio matures and
further realisations are achieved, further cash distributions will
be received by the Company.
RSB
The Company's total interest in RSB was disposed of in the
period under review (see above).
Other matters
At the date of signing this report, the Company holds US$0.59m
in net cash balances, equivalent to 0.91 cents per share.
As a Board we will continue to manage operating costs carefully.
Our objective remains to realise assets at the appropriate time and
value, and to return the proceeds, less expenses, to our
shareholders.
On behalf of the Board of Directors, I thank all Shareholders
for their support.
Faithfully yours,
Rhys Davies
30 September 2019
For further information, please contact:
EIH PLC
Rhys Davies
Tel: +41 (0) 79 620 0215
Nplus1 Singer Advisory LLP (Nominated Adviser)
James Maxwell / George Tzimas
+44 (0)20 7496 3000
EIH PLC
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2019
For the period For the period
from 1 January from 1 January
2019 to 2018 to
30 June 2019 30 June 2018
Note US$'000 US$'000
------------------------------------ ------ ---------------- ----------------
Income
Fair value movement on investments
at fair value through profit
or loss 5 (156) (3,077)
Net investment expenditure (156) (3,077)
------------------------------------ ------ ---------------- ----------------
Expenses
Administrative expenses (162) (110)
Legal and other professional
fees (83) (70)
Audit fees (21) (20)
Other (expenses)/income (6) 2
Total operating expenses (272) (198)
------------------------------------ ------ ---------------- ----------------
Loss before taxation for the
period (428) (3,275)
Income tax expense - -
Loss after taxation for the
period (428) (3,275)
------------------------------------ ------ ---------------- ----------------
Other comprehensive income - -
------------------------------------ ------ ---------------- ----------------
Total comprehensive expenditure
for the period (428) (3,275)
------------------------------------ ------ ---------------- ----------------
Basic and fully diluted loss
per share (US cents) 6 (0.66) (5.08)
------------------------------------ ------ ---------------- ----------------
The accompanying notes form an integral part of these interim
financial statements.
EIH PLC
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
As at 30 June As at 31 December
2019 2018
Note US$'000 US$'000
------------------------------ ----- -------------- ------------------
Non-current assets
Financial assets at fair
value through profit or
loss 5 9,392 16,345
------------------------------- ----- -------------- ------------------
Total non-current assets 9,392 16,345
------------------------------- ----- -------------- ------------------
Current assets
Trade and other receivables 29 25
Cash and cash equivalents 739 628
------------------------------- ----- -------------- ------------------
Total current assets 768 653
------------------------------- ----- -------------- ------------------
Total assets 10,160 16,998
=============================== ===== ============== ==================
Equity
Issued share capital 1,265 1,265
Share premium 12,405 18,855
Retained earnings (3,614) (3,186)
------------------------------- ----- -------------- ------------------
Total equity 10,056 16,934
------------------------------- ----- -------------- ------------------
Current liabilities
Trade and other payables 104 64
Total current liabilities 104 64
------------------------------- ----- -------------- ------------------
Total liabilities 104 64
------------------------------- ----- -------------- ------------------
Total equity and liabilities 10,160 16,998
=============================== ===== ============== ==================
The accompanying notes form an integral part of these interim
financial statements.
EIH PLC
UNAUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2019
Share capital Share Retained Total
premium earnings
US$'000 US$'000 US$'000 US$'000
------------------------ -------------- --------- ---------- ---------
Balance at 1 January
2018 1,265 21,435 2,074 24,774
Total comprehensive
income
Loss for the period - - (3,275) (3,275)
Transactions with
owners of the company
recorded directly
in equity
Return of capital - (1,613) - (1,613)
Balance at 30 June
2018 1,265 19,822 (1,201) 19,886
------------------------ -------------- --------- ---------- ---------
Balance at 1 January
2019 1,265 18,855 (3,186) 16,934
Total comprehensive
income
Loss for the period - - (428) (428)
Transactions with
owners of the company
recorded directly
in equity
Return of capital - (6,450) - (6,450)
Balance at 30 June
2019 1,265 12,405 (3,614) 10,056
------------------------ -------------- --------- ---------- ---------
The accompanying notes form an integral part of these interim
financial statements.
EIH PLC
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2019
For the period For the period
from from
1 January 1 January
2019 to 2018 to
30 June 2019 30 June 2018
Note US$'000 US$'000
Cash flows from operating activities
Loss before taxation (428) (3,275)
Adjustments:
Fair value movement on investments
at fair value through profit
or loss 5 156 3,077
Operating loss before working
capital changes (272) (198)
Increase in trade and other receivables (4) (1)
Increase in trade and other payables 40 43
----------------------------------------- ----- ----------------- -----------------
Net cash used in operations (236) (156)
Net cash used in operating activities (236) (156)
----------------------------------------- ----- ----------------- -----------------
Cash flows from investing activities
Proceeds from disposal of investment 5,237 -
Capital distribution received 5 1,560 2,440
Net cash generated by investing
activities 6,797 2,440
----------------------------------------- ----- ----------------- -----------------
Cash flows from financing activities
Return of capital (6,450) (1,613)
----------------------------------------- ----- ----------------- -----------------
Net cash used in financing activities (6,450) (1,613)
----------------------------------------- ----- ----------------- -----------------
Net increase in cash and cash
equivalents 111 671
Cash and cash equivalents at
1 January 628 748
----------------------------------------- ----- ----------------- -----------------
Cash and cash equivalents at
30 June 739 1,419
========================================= ===== ================= =================
The accompanying notes form an integral part of these interim
financial statements.
Notes to the Unaudited Interim Results
For the six months ended 30 June 2019
1 The Company
EIH PLC was incorporated and registered in the Isle of Man under
the Isle of Man Companies Act 1931-2004 on 10 November 2006 as a
public company with registration number 118297C. On 28 March 2011
the Company re-registered under the Isle of Man Companies Act 2006
with registration number 006738V.
Pursuant to a prospectus dated 19 March 2007 there was a placing
of up to 65,000,000 Ordinary Shares of GBP0.01 each. The number of
Ordinary Shares in issue immediately following the placing was
65,000,002. The shares of the Company were admitted to trading on
the Alternative Investment Market of the London Stock Exchange
("AIM") following the close of the placing on 23 March 2007. The
Company purchased 500,000 of its own shares for US$0.60 each on 30
September 2011.
The Company's agents perform all significant functions.
Accordingly, the Company itself has no employees.
2 Duration
The Company currently does not have a fixed life but the Board
considers it desirable that Shareholders should have the
opportunity to review the future of the Company at appropriate
intervals. Accordingly, at the annual general meeting of the
Company in 2021 a resolution will be proposed that the Company
ceases to continue as presently constituted. Shareholders holding
at least fifty one per cent of the shares must vote in favour of
this resolution for it to be passed. If the resolution is not
passed, a similar resolution will be proposed at every third annual
general meeting of the Company thereafter. If the resolution is
passed, the Directors will be required, within 3 months of the
resolution, to formulate proposals to be put to Shareholders to
reorganise, unitise or reconstruct the Company or for the Company
to be wound up.
3 Significant accounting policies
The principal accounting policies adopted in the preparation of
the financial statements are set out below.
3.1 Basis of presentation
These interim financial statements have been prepared in
accordance with International Financial Reporting Standard (IFRS)
IAS 34: Interim Financial Reporting. They do not include all of the
information required for full annual financial statements and
should be read in conjunction with the financial statements of the
Company for the year ended 31 December 2018. The interim financial
statements are unaudited.
The accounting policies adopted in the preparation of the
interim consolidated financial statements are consistent with those
followed in the preparation of the Company's annual financial
statements for the year ended 31 December 2018.
Notes to the Unaudited Interim Results
For the six months ended 30 June 2019 (continued)
3.2 Investments at fair value through profit or loss
Investments are designated as financial assets at fair value
through profit or loss. They are measured at fair value with gains
and losses recognised through profit or loss.
The Company's investments at fair value through profit and loss
comprise funds where fair value is estimated by the Directors to be
the Company's share of net asset value per latest financial results
reported by the underlying fund administrator.
3.3 Segment reporting
The Company has one segment focusing on maximising total returns
through investing in an Indian private equity portfolio of
investments. No additional disclosure is included in relation to
segment reporting, as the Company's activities are limited to one
business and geographic segment.
4 Net asset value per share
The unaudited net asset value per share as at 30 June 2019 is
15.6 cents per share based on 64,500,002 ordinary shares in issue
as at that date (31 December 2018: 26.3 cents per share based on
64,500,002 ordinary shares).
5 Financial assets at fair value through profit or loss
The objective of the Company is to make indirect investments in
Indian private equity funds and companies via Mauritian based
investment funds and to also co-invest directly in certain
portfolio companies of the underlying funds. As at 30 June 2019,
the investment portfolio comprised the following assets:
Investments Capital Commitment Capital Invested Capital Fair value Fair Value
(Unlisted) Distribution Adjustment
--------------------- ------------------- ----------------- -------------------- -------------------- -----------
US$'000 US$'000 US$'000 US$'000 US$'000
Fund Investments
(equity)
Evolvence India Fund
PCC 45,120 45,120 (32,235) (3,493) 9,392
45,120 45,120 (32,235) (3,493) 9,392
--------------------- ------------------- ----------------- -------------------- -------------------- -----------
Notes to the Unaudited Interim Results
For the six months ended 30 June 2019 (continued)
5 Financial assets at fair value through profit or loss (continued)
The fair value of the Company's investments has been estimated
by the Directors with advice from Evolvence India Advisors Inc. The
movement in investments during the period was as follows:
31 December
30 June 2019 2018
US$'000 US$'000
Fair value brought forward 16,345 24,065
Disposal proceeds of investments
at fair value (5,237) -
Loss on disposal of investments at
fair value through profit and loss - -
Capital distributions (1,560) (2,982)
Movement in fair value (156) (4,738)
Fair value at period/year end 9,392 16,345
-------------------------------------- ------------- ------------
The outstanding capital commitments as at 30 June 2019 were
US$nil (31 December 2018: US$nil).
Evolvence India Fund PCC (EIF)
Evolvence India Fund PCC, a Protected Cell Company formed under
the laws of Mauritius having limited liability, is a private equity
fund of funds with a co-investment pool, focusing primarily on
investments in India. The fund investments of EIF are Baring India
Private Equity Fund II, India Value Fund II, Leverage India Fund,
New York Life Investment Management India Fund II, Ascent India
Fund, JM Financial India Fund I, HI-REF International LLC Fund and
NYLIM Jacob Ballas India Fund III.
Valuation basis
The fair value of the investment in EIF is based on the
Company's share of the net assets of EIF at 30 June 2019 per its
results as reported by the underlying fund administrator. The
financial statements of EIF are prepared under IFRS, with all
investments stated at fair value. The valuation of the investment
portfolio of EIF has been performed by its investment manager at 30
June 2019, although underlying fund valuations are based on the
latest LP reports available (31 March 2019), adjusted for
distributions received by the Company. The investment portfolio
comprises investments in private equity funds, where fair value is
based on reported net asset values.
EIF Co Invest VII
The Company invested US$7m in RSB Group through a Special
Purpose Vehicle (SPV), EIF Co Invest VII. The Company entered into
an agreement for the sale of its shareholding in RSB, held through
EIF Co Invest VII, on 20 March 2019. The Company received sale
proceeds on 10 April 2019 of US$5.24m from its disposal of its
shareholding in RSB, held through EIF Co Invest VII, and a further
US$1.55m on 24 April 2019 as a distribution from EIF in respect of
the disposal of its indirect shareholding in RSB, held through
EIF.
Notes to the Unaudited Interim Results
For the six months ended 30 June 2019 (continued)
6 Loss per share
Basic and fully diluted loss per share is calculated by dividing
the loss attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period:
30 June 2019 30 June 2018
'000 '000
Loss attributable to equity holders
of the Company (US$) (428) (3,275)
Weighted average number of ordinary
shares in issue 64,500 64,500
Basic loss per share (cents per share) (0.66) (5.08)
----------------------------------------- ------------- -------------
There are no dilutive potential ordinary shares in issue,
therefore there is no difference between the basic and fully
diluted loss per share for the period.
7 Subsequent events
The Company currently expects to receive a distribution of
approximately US$0.9m from EIF in October 2019.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR CKKDNNBKDACN
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