Graphite Enterprise´s objective is long term capital growth and its benchmark is the FTSE All–Share Index.

Against a background of continued economic weakness, Graphite Enterprise performed well in the six months to 31 July, with the net asset value per share increasing by 8.6% and the share price by 27.3%. These figures compare with a fall of 0.6% in the Company’s benchmark, the FTSE All-Share Index, in the same period.

The 27.3% rise in the share price reflected the increase in the net asset value and a narrowing of the discount from 42.3% at the start of the period to 32.4% at 31 July. Since the start of the economic downturn, the Company has been one of the top performers in the peer group in net asset value terms.

Graphite Enterprise ended the period with net assets of £434.8 million of which the investment portfolio of £359.2 million accounted for 83%. Cash and near cash balances increased by £32.7 million to £75.6 million over the six months with almost all of the cash inflow resulting from the receipt of £38.3 million of net realisation proceeds from the portfolio. At 31 July, cash balances accounted for 17% of total assets.

On 7 October 2011, Graphite Enterprise announced that it increased the size of its bank facility from £30 million to £60 million. The £30 million increase to the revolving credit facility has been provided by Lloyds Bank Corporate Markets on the same terms as the existing arrangements with The Royal Bank of Scotland. The term of the facility will end on 1 April 2015.