Edison Investment Research Limited
Edison issues update on Princess Private Equity Holding (PEY): Offering an attractive dividend yield

06-Dec-2023 / 09:16 GMT/BST
The issuer is solely responsible for the content of this announcement.


 

London, UK, 6 December 2023

 

Edison issues update on Princess Private Equity Holding (PEY): Offering an attractive dividend yield

Princess Private Equity Holding (PEY) posted a year-to-date NAV total return to end-October 2023 of 4.9%, 2.4% of which was from Q323. PEY’s performance continues to be assisted by portfolio earnings, with last-twelve-month revenue and EBITDA growth to end-September 2023 of 16% and 15%, respectively, and sustained healthy average EBITDA margin of 24%. PEY’s balance sheet remains firm with c €134m in undrawn credit facility and €3m in cash, further assisted by the Civica sale proceeds upon deal closure. Consequently, PEY will pay out two interim dividends of €0.73 in total in 2023, implying a yield of 6.9% at the current share price.

We believe that PEY’s maturing portfolio could provide attractive exit opportunities once activity in the global M&A markets rebounds. PEY recently agreed to sell Civica at a price in line with fair value one year prior, suggesting that a potential lengthening of holding periods and higher interest rates may somewhat limit uplifts upon exits. However, it is worth noting that, over the five years to end-June 2023, PEY achieved a 50% average uplift to fair value one year previously for its 11 fully realised direct holdings where it invested more than €5m each. Moreover, exit proceeds may now be recycled into attractively priced new opportunities.

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About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington.

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1790643  06-Dec-2023 

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