10th Jul 2015 16:49
LONDON (Alliance News) - Artemis Alpha Trust PLC Friday said its net asset value per share declined in its recently-ended financial year, underperforming its benchmark which rose during the year.
The company's net asset value per share in the year ended April 30 fell by 0.9% on a total return basis, compared with a 7.5% rise in its benchmark, the FTSE All-Share Index. Its net asset value per share stood at 326.28 pence at the year-end, down from 332.55p the year before.
Artemis said that the primary reason for the NAV decline was due to a sharp fall in the price of oil in the final quarter of 2014, which led to severe falls in the valuations of a number of the portfolio's oil and gas holdings.
"While the company's exposure to this sector had been reduced significantly from the levels seen in previous years, the remaining holdings, on average, fell in value by more than 50% during the year," Artemis said in a statement.
"The company's exposure to this sector is now below 10% and, given the recovery in the oil price seen in recent months, we are cautiously optimistic that some of the losses incurred on these holdings will be recouped," the company added.
Artemis added that it was also hit by luxury online gift retailer Gift-Library.com going into administration.
Artemis declared a dividend of 3.55 pence for the year, up from 3.20p the year before.
"Corporate activity has increased over the last year, offering a more favourable climate for the realisation of unquoted investments. This seems likely to continue. The portfolio has already seen some benefit from this trend and we hope to do so again in the coming year.
Although the company has endured a period of poor performance, the board and investment manager are determined to bring improved returns to shareholders," Chairman Duncan Budge said.
Shares in Artemis closed up 0.4% at 273.00 pence on Friday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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