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magazineWhy ICG Enterprise’s discount remains undeserved
ICG Enterprise (ICGT) 860.2p
Gain to date: 6.1%
Original entry price: Buy at 811p, 31 January 2019
Slowly but surely private equity investment trust ICG Enterprise (ICGT) is starting to narrow the still significant discount to net asset value endured by the shares.
This process was supported by a strong set of full year numbers for the year to 31 January 2019. The net asset value at the end of the period hit £10.46 which represents a year-on-year increase of 10.1%.
The company realised value from 60 of its unquoted investments in the year with an average valuation uplift of 35% to carrying value and at 2.4 times their initial cost.
The trust has moved to paying quarterly dividends and total dividends for the full year came to 22p – slightly higher than the 21p paid a year earlier.
One thing for investors to watch is the replacement of Emma Osborne who has led the investment team since 2004 and is moving to a senior adviser role at the end of 2019 which means she won’t be as hands-on with the day-to-day running of the trust.
Broker Stifel comments: ‘We think prospects for net asset value growth continue to look good, both from an earnings perspective and in terms of realisations.’
Shares says: Still at a 20% discount to net asset value, this remains a compelling buying opportunity.
KEEP BUYING
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