Ann: Portfolio valuation update, page-2

This once again firms up the view that the underlying portfolio is holding up better than the market is giving it credit for.

Something important to note is that nearly half of these recent valuations were also conducted independently.

I've just been doing some calculations to find an updated NTA.

I've dropped the portfolio value down to 772 (rounded down) million in line with this announcement.

I've taken the debt figure of 263 (also rounded down) million from the most recent annual report (I think this already reflected the recent round of asset sales? Hopefully it did otherwise it might have come down a bit further).

That gives us a gearing ratio back out at 34% and an updated WACR of 6.3%

It would also give us net assets of 509 million

Divided by 138 million shares on issue (rounded up) this would give us a new NTA of $3.68

A 26% NTA discount to todays share price along with a 7.6% unfranked yield if they can hit a 20.7 cent distribution for the full year which was the bottom end of the guidance.

I still think we need to plan for one further round of write downs but would again expect it to be minor so I'll still work on the basis of a $3.50 NTA for a margin of safety.

I still think DXC is compelling value around the $2.50 mark and I'll be topping up again if it gets back down there.