Eredene posts £2.6m profit

The Indian infrastructure investor credited the profit to an increase in the fair value of its investments. Despite the positive results, the firm will not pay a dividend to shareholders.

Eredene Capital, the UK-listed investment firm focused on Indian infrastructure, has posted a profit of £2.6 million (€3 million; $4 million) for its financial year ended 31 March.

In 2009, the firm posted a loss of £6.4 million.

Eredene said in a statement this year’s profit was “primarily” the result of an increase in the fair value of its investments, which rose 35 percent from a year earlier. As a result, the per-share net asset value of its investments also rose, going from 21.9 pence at the end of its 2009 financial year to 23.0 pence as of 31 March. 2010.

Despite the positive results, Eredene said it will not pay its shareholders a dividend for the latest financial year.

Founded in 2005, Eredene has made investments in eleven projects in India. Nine are in the ports and port services, logistics and distribution sector, one is in an office complex and one in affordable housing development.

Its two most recent investments include a £23 million phased equity commitment to a container terminal in Southern India and an $11.1 million investment in Ocean Sparkle, an Indian port operator.

The mix of ports and real estate assets is a reflection of Eredene’s origins as a real estate fund that changed its focus to port-related infrastructure in 2006 after it hired a team of former P&O Ports professionals.

Eredene is quoted on the Alternative Investment Market on the London Stock Exchange. As of press time, the firm’s shares stood at 20.7 pence, up 3.5 percent on the day’s trading.