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Summarised unaudited financial statements for the quarter and six months ended 31 March 2020
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”)
SHORT FORM ANNOUNCEMENT: SUMMARISED UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER AND SIX MONTHS ENDED 31 MARCH 2020
Quarter ended Quarter ended Year ended
31 March 2020 31 March 2019 30 June 2019
Net asset value per share “NAV”) GBP 1.024 1.070 1.143
(Loss) / profit for the quarter/year GBP (7,923,775) 2,800,361 8,034,054
(Loss) / earnings per share pence (10.95) 3.87 11.10
Headline earnings per share pence (10.95) 3.87 11.10
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 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 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.
Since its listing on the SEM and the JSE, the Company has been working closely with its investment advisor, Argo Investment
Managers (“Argo”), to identify potential investments that meet its investment criteria.
The Company has now completed six investments since its listing, having concluded the acquisition of a significant minority stake
in Techstream Group (“Techstream”) in January 2020.
In January 2020, the World Health Organization (“WHO”) announced a global health emergency due to a novel strain of
coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus
spread globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the
rapid increase in exposure globally.
Governments around the world announced lockdowns, forcing all but essential businesses to close temporarily. Our portfolio
companies have been and continue to be affected by lockdowns in various countries, particularly in the UK. The management of
the investee companies have responded proactively, introducing work from home (“WFH”) protocols, cutting costs, conserving
cash, and accessing government support schemes where applicable and relevant. There has been a strong focus on managing
liquidity, while engaging constructively with the various funding partners. Further details as they pertain to each company are
provided below.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, the full magnitude of the effect
that the pandemic will have on the businesses in which the Company is invested is uncertain.
The Company believes that it is prudent to recognise this reality in its valuations at the March quarter end by making a general
provision of 10% of the fair value of the portfolio. This impairment largely reflects the impact of the adverse trading conditions
on the valuation of Dentex and Techstream. Argo is actively monitoring the performance of each investment and the Company
will be better able to assess the impact on the valuation of its investments at the year-end, being 30th June 2020.
Financial review
For the quarter ended 31 March 2020, interest income included interest of GBP 1,623 earned on the Company’s cash balances.
The Company has recognised dividend income of GBP 111,197 during the quarter. The dividend relates to preference shares that
were subscribed for as part of the Techstream acquisition.
The Company’s investment in SC Lowy is reflected at its original cost and is denominated in US Dollars (“USD”). The translation
effect of exchange rate movements between the USD and the GBP for the quarter resulted in a foreign exchange gain of GBP
666,011.
As detailed above, the Company has raised a general impairment provision of 10% of the value of its investment portfolio. This
equates to an impairment loss of GBP 9,044,751 which has been recognised in the quarter.
Potential performance fees, which are recalculated quarterly, may become payable to Argo in the event that the Company realises
any of the underlying investments and achieves a return in excess of the hurdle rate net of fees in accordance with the investment
management agreement between the Company and Argo. This performance can only be accurately calculated on realisation and
will become payable once the proceeds of the related sale are received by the Company. Due to the reduction in the valuation of
the Company’s investments during the period under review, the existing accrual was decreased by GBP 978,489, resulting in a
positive effect on the Company’s earnings.
Management fees paid for the quarter amounted to GBP 414,253, incurred in terms of the investment management agreement
between the Company and Argo. In addition, the Company incurred general and administrative expenses of GBP 134,647.
The Company incurred interest on the RMB debt facility of GBP 59,319 for the quarter as well as interest of GBP 28,125 from the
capitalisation of the facility’s raising fee in accordance with IFRS.
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 10
June 2020, 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/2020/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
9 June 2020
Company Secretary
Intercontinental Trust Limited
For further information please contact:
JSE sponsor SEM authorised representative and sponsor Company Secretary
Java Capital Perigeum Capital Intercontinental Trust Ltd
Tel: +27 11 722 3050 Tel: +230 402 0890 Tel: +230 403 0800
Date: 09-06-2020 02:23:00
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