14th Apr 2020 18:36
(Alliance News) - Amati AIM VCT PLC said Tuesday it outperformed its benchmark for its recently ended financial year, on a strong performance from its investments.
For the year ended January 31, the trust reported a net asset value total return of 12.0%, compared to the Numis Alternative Markets Total Return Index, which gained 8.1%.
As at January 31, net asset value per share was 155.6 pence, up 6.5% from 146.1p the same date the year before. Amati AIM's share price at the end of January was 144.5p, reflecting a discount to net asset value of 7.1%.
Shares in Amati AIM VCT closed 0.4% lower at 118.01 pence on Tuesday in London.
During the year, the trust's biggest contributor to performance was digital learnings company Learning Technologies Group PLC, whose shares more than doubled over the period as a result of a strong earnings performance in 2019.
Strong gains also came from automotive engineering group AB Dynamics PLC, video game publisher Frontier Development PLC and identity management software firm GB Group PLC.
Amati AIM VCT declared a total dividend of 7.75 pence per share, up 3.3% from 7.50p the year before.
"If 2008 is anything to go by, in this phase the market goes from being too relaxed about the major problems arising to significantly over-estimating their long-term impacts. While standing in the very midst of the crisis it is very difficult to keep perspective. What in February we may have rationalised as a deep but short term problem, in March, now the shutdown has started, appears to present systemic threats and an unending series of upsets as we feel our way down the painful path of minimising the number of tragedies caused by the virus," said Chief Executive Officer Paul Jourdan.
"Over the next few weeks we would expect the market to begin to adapt to the new normal, as panic selling eases and more information becomes available about how long the economic shutdown is going to persist, how likely it is to recur, and when some medical breakthroughs will be made to deal with the underlying problem. As this happens the market should find its feet again and more reasonable assessments can be made about the valuations of businesses again," Jourdan added.
By Dayo Laniyan; [email protected]
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