Blog
Eredene Capital: one to follow in 2010?
Posted 21/12/09
Eredene Capital (AIM: ERE), the AIM quoted investor in Indian infrastructure developments, could be one to follow in 2010.
The group focuses primarily on ports, port services, logistics and distribution warehouses and has made nine investments in India - seven in port services, logistics and distribution warehouses, one in IT offices and one in a large scale, low-cost housing development. Three of the group’s investments are revenue generating and a fourth is taking sales deposits.
The investment advisory team in Mumbai is led by Mr Nikhil Naik who was previously Regional Director of P&O in India and CEO of Mundra International Container Terminal.
The group recently announced its interim results for the six months ending 30th September 2009. For the six months the group made a loss of £4.3m (2008: loss of £1.8m) and as at 30th September 2009, the net asset value attributable to equity shareholders was £55.9m representing 20.0p per share (current price 16.25p). The nav per share has fallen by 8.7% in the six months to 30 September 2009 with more than three quarters of the reduction caused by non-cash accounting entries relating to investment valuation adjustments, unrealised foreign exchange adjustments (Indian Rupee against Sterling) and the mild dilutionary effect of the recent share placing.
A month prior to the period end Eredene raised £7.1m at 20p per share to invest in new infrastructure projects in India.
Management commented how India’s economy has weathered the international financial crisis better than most and has continued to grow, achieving a higher than expected 7.9% growth in GDP in the quarter ended 30 September 2009. Even with a drop in exports and amid a sharp decline in world trade, cargo volumes at India’s 12 state owned ports increased by 3.6% in the period from April to October 2009 compared to the same period in 2008.
This entry was posted 2 years, 1 month ago and was filed under Eredene Capital.
