4th Dec 2019 10:50
(Alliance News) - Augmentum Fintech PLC on Wednesday expressed confidence for the future after its net asset value grew in the first half of its current financial year.
The venture capital investor reported a 2.4% increase in NAV per share to 112.2 pence as at September 30, thanks to an uplift in the valuations of four of the company's existing investments, Monese, Interactive Investor, Bullion Vault and Tide.
Less positively, Augmentum Fintech said the value of its investment in peer-to-peer lender Zopa was chopped almost in half, but it remains confident in the long-term success of this business.
As at September 30, Augmentum Fintech's fair value of holding in Zopa stood at GBP11.7 million compared to GBP22.0 million as at the end of March. The reduction is a result of the pricing of Zopa's recent GBP140 million funding round to fully launch its bank.
Augmentum Fintech explained that it, and other existing investors, had asked the Prudential Regulation Authority for the opportunity to conduct due diligence once there was more economic and political stability in the UK. However, it had not been possible to achieve an extension to Zopa fundraising beyond the original deadline.
Turning to its dividend, Augmented Fintech explained that it is focused on providing capital growth and given the investment opportunities in the sector it does not anticipate recommending paying a dividend in the near future .
"Our success will ultimately derive from us backing the right businesses at the right time," explained Chair Neil England.
He added: "The market for fintech will continue to evolve and grow and we believe that we are well positioned to play an increasingly prominent part in that journey. Your board therefore remain confident for the future."
The stock was trading 4.6% lower in London on Wednesday morning at 102.09p a share.
By Evelina Grecenko; [email protected]
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