Edison issues outlook on Deutsche Beteiligungs
OREANDA-NEWS. Deutsche Beteiligungs (DBAG) reported a strong performance in the first half of FY16 with an 11.1% increase in NAV supporting management's guidance for a c 14% return on NAV for the full year. While macroeconomic conditions are reported to have become more demanding, portfolio companies have diverse exposures to market and economic cycles and the majority continue to budget for higher revenues and earnings in 2016. DBAG invested €21m during the half year including €19m in two new companies and three divestments were agreed. Although it made a negative value contribution, the sale of Clyde Bergemann Power Group has brought DBAG Fund IV to a successful close.
DBAG shares are trading at a 12.7% premium to NAV compared with an average 19.8% premium over the last 12 months. We see this premium explained by the income stream from its fund services business, the value of which is not reflected in reported NAV. The recent narrowing of the premium reflects the shares weakening along with the wider market, while reported NAV has continued to progress higher.
Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington.