Amati VCT Net Asset Value Outperforms Benchmark On Strong Performance

LONDON (Alliance News) - AIM-focused investment company Amati VCT PLC said on Friday that its ...

Alliance News 13 October, 2017 | 11:58AM
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LONDON (Alliance News) - AIM-focused investment company Amati VCT PLC said on Friday that its net asset value significantly outperformed its benchmark after a strong performance from its largest holdings even as its net asset value discount to its share price widened.

At the end of the six months ended August 31, the net asset value per share had increased to 94.6 pence from 69.6 pence the year prior. This is after net asset value increased to GBP57.3 million from GBP39.9 million.

Net asset value total return of 29.3% was ahead of its Numis Alternative Markets Total Return Index benchmark's 13.2% return over the same period.

The period was the "strongest in the history" for Amati VCT, the company said, except for in the first half of 2009 "when the market was bouncing very strongly off its post-crisis lows." Its recent performance, however, was a result of "good results" amongst its largest holdings which pushed shares prices higher.

The share price discount to NAV at the end of the period, however, widened to 8.8% from 4.7% the year before.

The company hiked its interim dividend to 2.0 pence per share from 1.5 pence the year before.

"It is always important to remain realistic about expectations following periods of very strong performance", Amati Chairman Peter Lawrence said. "Markets have a tendency to retrace after periods of above average returns. However, the tangible progress being made by many of our portfolio companies has been impressive and creates a strong platform for continued growth, even in tougher times."

Lawrence added that Amati's investment manager "expects to see a healthy level of attractive new investment opportunities and a successful fund raising will enable the company to take full advantage of these as and when they arise. After the [UK] Budget next month, we may have a clearer picture of the future landscape for VCTs following our offer, which I hope will be fully subscribed."

Earlier this year, Amati VCT 2 PLC said it was to raise funds under a joint offer with Amati VCT with the aim of raising GBP10 million for each business, as they detailed plans for a merger of the two companies.

Shares in Amati VCT were 0.3% down at 88.02 pence on Friday.

By Ahren Lester; ahrenlester@alliancenews.com.

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Amati VCT Ord 89.25 GBX 0.00 -
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