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Baillie Gifford UK Growth says NAV per share falls in interim results

30th Nov 2022 17:01

(Alliance News) - Baillie Gifford UK Growth Trust PLC on Wednesday reported a falling net asset value per share in its interim results as it looked to a new pipeline of investments.

Baillie Gifford UK Growth Trust is a London-based investment firm focused on capital growth over the long-term from investment primarily in shares of listed UK companies.

Baillie Gifford UK Growth's net asset value per share slipped 13% to 172.4 pence at October 31 from 197.4p at April 30. Its closing share price at October 31 was 150.0p, representing a discount to NAV of 13%, wider than the 11.8% reported at April 30.

The fund initiated two new positions in the period, in IT infrastructure provider Softcat PLC and the digitisation specialist Kainos Group PLC. It sold its stake in online food delivery company Just Eat NV.

The main detractors from performance in the period included the kitchen company Howden Joinery Group PLC, car platform AutoTrader Group PLC and clean air solution provider Volution Group PLC.

In all three cases, the company said, the market is worried about "the impact of an economic downturn in the short term although all of these businesses have compelling growth opportunities over the longer term and strong balance sheets to weather any near-term turbulence."

It said it was currently "working hard at developing a pipeline of new investment ideas that might be mispriced in the current environment."

The company said: "We are not market timers or forecasters, but the evidence of a growing opportunity set of potential investments shows there is an interesting and growing disconnect between top-down perceptions of the UK market and what we are starting to see in terms of long-term opportunities for growth investors, notwithstanding the near term economic challenges. In plain English and with apologies to Charles Dickens: it was the worst of times, it was the best of times."

Shares in Baillie Gifford UK Growth were closed 0.1% lower at 165.20 pence each in London on Wednesday afternoon.

By Chris Dorrell; [email protected]

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