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Candover Investments sees profits rise, NAV fall

Candover Investments has reported a six per cent increase in pre-tax profits for 2002 to £15.5m, but a 7.7 per cent decrease in net asset value.

Candover Investments is the publicly quoted vehicle of the UK buy-out firm. Its increase in profits for last year was the result of six realisations, which generated £50m for Candover. These exits included the sale of Detica, PII, Regional Independent Media and Diamant Boart. The firm described the outcome of these realisations as ‘satisfactory', given the challenging exit environment.

The firm also reported a fall in NAV, but pointed to the general deterioration of the public markets. Candover's NAV fell by 7.7 per cent; the FTSE All-Share Index fell by 25 per cent in the year to 31 December 2002.

‘The valuations of our portfolio companies are closely linked to comparable listed company multiples and the continued decline in the financial markets has meant that a decline in the value of our net assets has been unavoidable,' said Stephen Curran, chairman of Candover.

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