June 24th 2011, London, UK. Channel Capital Plc (“CC Plc”) has reported record year-end audited results for the year ending March 31st 2011.
Economic Profit1 for the period amounted to $17.1 million, up from $12.9 million the previous year. Positive investment performance and debt management activities contributed to these results, which were significantly ahead of budget.
This performance results in record economic return-on-investment (ROI) of 32%2, versus 24% the previous year. CC Plc reported an IFRS loss of $1.9 million for the year ending March 31st 2011, reflecting fair value adjustments to its portfolio credit default swap transactions. During the year, CC Plc made its first Variable Payment to Junior Noteholders in the amount of US $28.2 million (in February 2011) and a further Variable Payment in the order of US $6.5 million is expected to be declared by CC Plc later this month subject to satisfaction of certain conditions.
“We are pleased to report another year of positive financial results notwithstanding volatile credit market conditions”, said Walter Gontarek, CEO of Channel Capital Advisors LLP(“Channel”), who acts as the Investment Manager to CC Plc. “I’d like to thank everyone involved for their contribution to this level of performance”, he said.
About Channel: Channel, a UK based credit asset manager authorized and regulated by the Financial Services Authority, was founded by a team of credit risk management professionals and a consortium of commercial banks in 2006. Channel manages over $10 billion of portfolio credit transactions across over 500 obligors with no realized losses to date. Economic return-on-investment2 has averaged 25% per annum in this investment strategy during the past three years. Channel is also involved in loan and funding intermediation activities with its clients globally.
At Channel, we provide high-quality, privately originated asset-backed investment products by originating, structuring, and managing investments for leading institutional investors. We specialise in opportunities from issuers in specialty finance and the innovation economy.
For borrowers, we are a trusted partner in growth. Our expertise in structuring tailored financing solutions ensures you get the capital you need to scale, with a streamlined process and terms that work for your business. We are committed to delivering flexible, efficient, and growth-focused funding that empowers your success.
For further information, please contact:
Walter Gontarek, Chief Executive
Channel Capital Advisors LLP
Email: walter.gontarek@channelcapital.co.uk
