skip to content

Interim Results

AcenciA NAV up 3.72%

24 August 2017 07:24

AcenciA Debt Strategies' net asset value per share rose by 3.2% to $1.65 in the six months to the end of June and the share price increased by 10.32% to $1.58, taking account of dividends paid in both.

An interim dividend of 2.89¢ 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. Sub-nanager of Acencia, Saltus Partners said: "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, chairman William Scott, 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."

Story provided by

Related Company: ACD

Info Point:

To buy or sell shares call our Dealing Room on 0113 243 6941.

Too much jargon? Our glossary will help make sense of things.

Find out more about our Share Dealing Services.

Client Area Access

» Secure Login

» Not registered yet?


Branch Finder

Redmayne-Bentley have High Street branches throughout the UK. Find your nearest branch.