UNIVERSAL PARTNERS LTD

Our opinion on the current state of UPL

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Universal Partners (UPL), an investment holding company, is primarily listed in Mauritius and holds a secondary listing on the Alt-X of the Johannesburg Stock Exchange (JSE). Since its inception in 2013, Universal Partners has engaged in five notable investments, showcasing a diversified portfolio that spans various sectors and geographies. These investments include:

1. Dentex Healthcare Group in the UK, which owns 56 dental practices, indicating Universal Partners' interest in the healthcare sector.
2. Yasa, involved in distributing controllers for high power density electric motors, a venture that culminated in a sale to Mercedes Benz for GBP42.8 million, reflecting the company's successful exit strategy and focus on high-growth potential businesses.
3. SC Lowy, a market-maker specializing in distressed and high-yield debt, particularly in Asia, showcasing Universal Partners' interest in financial services and its global investment approach.
4. Propelair, a UK-based supplier of water-efficient toilets, demonstrating the company's investment in sustainable and environmentally friendly technologies.
5. JSA Services in the UK, providing personal service companies, payroll, and umbrella services to temporary workers, indicating an investment in the burgeoning gig economy and service sector.

For the six months ending on 31st December 2023, Universal Partners reported a significant net asset value (NAV) of GBP 1,267 and a transition from a previous loss to headline earnings per share (HEPS) of 0.09 pence. This financial turnaround signifies the company's strategic investment decisions and its capability to manage a diversified investment portfolio effectively. Universal Partners noted that it has made six investments since its listing and successfully concluded two exits, highlighting its active management and exit strategy.

Despite these positive developments, the share's limited trading volume on the stock exchange suggests it may not be suitable for private investors looking for liquidity. The thin trading volume can pose challenges for buying or selling shares without affecting the market price, thereby limiting its appeal to private investors seeking readily tradable assets.

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