Scherzer & Co AG (DE:PZSG) posted a NAV total return of c 22% to €2.74 in FY17 as it was able to benefit from the favourable market environment in Germany (MDAX +18%, SDAX +25% and TecDAX +40% last year). The NAV discount disappeared completely and the shares now trade at a 1% premium to the last reported NAV of €2.84 (as at end-April 2018). PZS’s portfolio of extra compensatory claims (ECS) stood at €93.2m (or €3.11 per share) as at end-March 2018 and still represents important additional NAV upside potential. Management proposed a total dividend payment of €0.10/share from FY17 earnings, including a special dividend of €0.05/share.
Stronger impact of realised gains on earnings
PZS reported an FY17 EPS of €0.26 compared to €0.15 in FY16, assisted by net disposal gains of €10.5m (FY16: €5.7m), higher net income from writing options of €0.8m (FY16: €0.3m) and a slight increase in dividend income, which stood at €1.8m (up 8% vs €1.7m in the prior year). Moreover, PZS has realised income from ECS of €1.2m in FY17 (vs a negligible amount in FY16), with two arbitration rulings resulting in additional income to PZS. The company’s net debt to equity ratio was higher at 40% vs 34% in FY16.
To read the entire report Please click on the pdf File Below: