Portfolio and NAV update

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Craven House Capital plc

("Craven House" or the "Company")

Portfolio and NAV update

The Company provides the following unaudited investment update covering the six-month period to 30 November 2019.

The table below sets out the latest estimate of the appropriate carrying value of the Company's investments as at 30 November 2019 in comparison to the values as of the latest published financial statements of the Company.

Portfolio update

The valuation of the Company's shareholding in Craven Industrial Holdings Plc ("CIH"), its principal wholly-owned investment holding company, has decreased from $27.4m to $20.5m. This reflects the change in the respective value of subsidiary holdings as follows;

DLC Holdings Corp. (TSXV:DLC) - 68% owned by CRV

DLC is a Toronto Stock Exchange listed agricultural investment company with holdings in Brazil and South Africa. The valuation ascribed to CIH's shareholding in DLC in CRV's financial statements reflects the published share price of DLC's shares as of 30 November multiplied by the number of shares owned by CIH. The valuation of DLC has decreased as a result in a drop in the mark-to-market valuation of the shares on the 30 November vs. the 31 May. Whilst the share price reduced from CAD$0.27 to CAD$0.12 during this period it is important to emphasise that the share price remained at or above the $0.27 level for the majority of the period and only traded down on very low volume during the tax loss selling season in Canada. There has been no deterioration in the valuation of the underlying holdings of DLC and management believe that the end of period share price represents a significant discount to the orderly liquidation value of DLC.  Management also believes that the political and economic situation in South America will likely provide for further acquisition opportunities as distressed sellers are forced to liquidate good properties. 

Qeton Ltd ("Qeton") - 50% owned by CRV.

Qeton Ltd is a joint venture company focusing on the distribution of mobile phones, tablet computers and accessories into emerging markets.

The valuation of Qeton during the past six-month period has reduced from $414k to $305k reflecting a small reduction in the adjusted earnings of Qeton during the respective trailing twelve-month periods. Qeton remains profitable, however trading is likely to continue to be subdued in comparison to historic levels due to weakness of currencies in local markets, particularly the Angolan Kwanza vs. the US Dollar. This means products (manufactured and shipped on a US Dollar basis) have become more expensive for local consumers and demand is reduced. Management believes that the importation of consumer electronics will remain a viable business over the long term and will be highly correlated to the global oil price which is the determining factor in access to foreign currency and discretionary consumer spending.

Craven House Angola LDA ("CHA") - 100% owned by CRV.

There was no change in the valuation of CHA during the period. The underlying loan portfolios continued to perform according to their terms with interest payments received as expected during the period. Management is evaluating options to repatriate capital from Angola on an accelerated basis to take advantage of opportunities in Europe and North America.

Craven House Capital North America LLC ("CHNA") - 100% owned by CRV

The valuation of Craven's US investment holding company, CHNA, reduced from $7.9m to $5.9m during the six months to November 2019. This decrease is the result of mark-to-market valuation of shares in DLC and LM Funding America Inc. owned by CHNA, which both declined during the period.

Kwikbuild Corporation Ltd. - 97% owned by CRV

The valuation of Kwikbuild remained almost unchanged during the period. There was no activity relating to the underlying assets of this subsidiary.

Performance Fee due to Investment Manager

The Investment Manager has again confirmed that it has agreed to waive $1.66m in performance fees which are payable to them under the terms of the Management Services Agreement in place with the Company. The Board welcomes this decision by the Investment Manager as it, once again, emphasises the Investment Managers desire that their interests remain aligned with all other shareholders.

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About Craven House Capital:

The Company's Investing Policy is to invest in or acquire a portfolio of companies, partnerships, joint ventures, businesses or other assets globally in any geographic jurisdiction. The company will invest in both developed and developing markets providing long term patient capital and is often involved in special situations, restructuring, expansion and turn around investments in crisis and transitioning economies.