NAV stable after large dividend payment
Is Private Equity (IS:ISGSY) aims to achieve capital appreciation and a dividend return by directly investing in Turkish companies. In the year to 31 December 2014 its NAV increased by 1% and it paid a dividend equivalent to 7.9% of the current share price. The fair value of the PE investments was flat during the year and financial income was largely offset by general administrative expenses and the dividend payment. Its discount to NAV at 37% is in line with its long-term average and gives investors some protection from the heightened uncertainty surrounding Turkey and investments in emerging markets.
Full year 2014
At 31 December 2014 ISGSY’s NAV was TRY264.4m, largely unchanged from the restated TRY261.8m at the end of December 2013. Interest income, together with gains on marketable securities, added TRY23.6m and was slightly more than the sum of the TRY0.7m fair value decline from its PE portfolio, the TRY8.2m of administrative costs and the TRY12m dividend paid in April 2014.
Investment flows: Acquisitions and disposals
There were no disposals made in 2014 as local and geopolitical uncertainties combined to make such actions problematic. In previous years ISGSY has been active, with 11 of its 15 investments exited. One new investment was made in Q414 when ISGSY paid TRY17.5m for a 28.5% stake in Radore, which provides data centre services in Turkey. ISGSY aims to increase the data centre capacity of the company and broaden its customer base by entering new markets and offering new value-added services. Two of ISGSY’s five current investments were made towards the end of 2012, indicating the immaturity of the portfolio.
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