North Atlantic Smaller Outperforms Benchmark Despite Tough Conditions

LONDON (Alliance News) - North Atlantic Smaller Cos Investment Trust PLC after market close on ...

Alliance News 20 May, 2019 | 6:40PM
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LONDON (Alliance News) - North Atlantic Smaller Cos Investment Trust PLC after market close on Monday reported a strong financial 2019, outperforming benchmark indices.

At January 31, the trust's net asset value per share stood at 3,710 pence compared to 3,462p the year before, a 7.2% increase.

North Atlantic Smaller's net assets increased 6.4% in the twelve months to January 31 to GBP531.4 million from GBP499.4 million the year before. The trust acquired and cancelled 100,000 shares in the period.

The trust outperformed the S&P Composite Index, which gained 3.7%, which Chair Peregrine Moncreiffe said was "particularly remarkable, because a significant part of the portfolio is invested in UK small Cap shares which had a poor year in general".

The Russell 2000 Index gained 3.1% in the same period.

The trust's US quoted portfolio saw "good profits".

North Atantic Smaller's pretax profit increased 14% to GBP5.8 million on a similar revenue jump to GBP11.6 million, resulting in a final dividend of 30p per share compared to zero the year before.

Chief Executive & Investment Manager Christopher Mills said: "The market for smaller companies was weak throughout most of 2018. Profit warnings combined with limited liquidity created a difficult environment with most relevant indices falling by more than 10%. It is therefore pleasing to report that our portfolio performed well.

"The major standout success stories were Bioquell with the value of our holding rising by GBP14 million, EKF/Renalytix which contributed GBP11 million and the recently purchased Augean adding almost GBP6 million. Oryx significantly outperformed its benchmarks while the other major holdings - Ten Entertainment, MJ Gleeson and Polar Capital - taken as a whole and adjusted for dividends made a positive contribution to the net asset value. Two smaller holdings have proved disappointing with both Sportech and Goals Soccer falling after worse than expected results," Mills added.

Shares in North Atlantic Smaller closed down 0.2% Monday at 2,988.46 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
North Atlantic Smaller Cos Ord 2,940.00 GBX -0.34 -
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