6th Jul 2016 16:21
LONDON (Alliance News) - Artemis Alpha Trust PLC said its net asset value total return fell during the last financial, but at a slower rate than its benchmark index, as the trust increased its dividend payout by almost 10%.
The trust said the NAV total return fell 6.1% in the financial year to the end of April, compared to the FTSE All-Share Index which fell 5.7% in the same period. The NAV declined to 303.43 pence from 326.28 pence.
"The last year has seen continued volatility in markets due, in part, to concerns over China's ability to sustain its growth projections and, in the last few months, uncertainty over the EU referendum," said the trust.
The current net asset value has fallen even further, dropping to 285.43 pence per share on Tuesday.
"The board remains acutely aware of the poor performance of the Company in recent years and the current level of the discount at which the shares trade to the underlying asset value. A sustained improvement in performance is needed to improve the rating of the shares and reduce the discount," said the trust.
Artemis shares closed down 1.5% to 207.75 pence per share on Wednesday and are trading over 14% lower than at the start of 2016. Over the course of the last financial year, the share price fell by over 13%.
"With this in mind, the board has recently reviewed the company's investment strategy with the fund managers. As a result, new guidelines and targets have been set, in particular for a reduction in the company's exposure to unquoted investments," said the trust.
"This has been a challenging area for the fund managers in recent years and has accounted for much of the poor performance and, the board believes, has been the principal contributor to the Company's weaker share price rating," the trust added.
Revenue earnings per share was up in the year to 4.73 pence from 4.12 pence a year earlier and the dividend was increased to 3.90 pence from the payout last year of 3.55 pence.
"The recent historic vote to leave the EU has triggered an extended period of uncertainty for the UK in many respects. As most of our investments are in UK companies there will inevitably be important implications for these businesses. However, it is perhaps too early to predict where this will lead and the long-term effect on our investee companies," said the trust.
By Joshua Warner; [email protected]; @JoshAlliance
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