29th Jan 2025 16:38
(Alliance News) - Aberforth Geared Value & Income Trust PLC on Wednesday acknowledged a challenging start since its launch, citing market volatility and policy concerns during its first-half, but highlighted the resilience of smaller UK companies and their potential for long-term growth.
Shares in Aberforth Geared were down 1.9% at 77.00 each in London on Wednesday afternoon.
The Edinburgh-based investment trust, which launched in June 2024, reported a decline in net asset value per share to 95.9 pence as of December 31, down 4.1% from its initial 100.0p.
Its share price dropped 17% over the period, while the NAV of its zero dividend preference shares edged up 2.6%.
Aberforth Geared also declared a first interim dividend of 1.50 pence per share for the period.
Chair Angus Gordon Lennox said: "As your company launched, the mood in the UK was starting to improve and low stock market valuations were attracting M&A interest from larger companies and private equity.
"However, in the short period since launch, other complications have emerged, notably the UK’s business-unfriendly budget and political uncertainties overseas. Consequently, investors have been given further pause for thought and are not yet convinced that the attractive stock market valuations of small UK quoted companies outweigh the risks."
The trust, which invests in a diversified portfolio of 50 to 100 smaller UK-listed companies, highlighted concerns about the UK government's latest budget, describing it as "business-unfriendly" and a potential headwind for private sector growth.
By Eva Castanedo, Alliance News reporter
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