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CT Private Equity ups payout but currency changes knock asset value

23rd Aug 2023 10:49

(Alliance News) - CT Private Equity Trust PLC on Wednesday said its net asset value has declined slightly since the end of last year, but anticipates "positive developments" in the current half.

The Edinburgh, Scotland-based trust, which invests in unlisted companies, said its NAV per share at June 30 was 680.75 pence. This was up 3.7% from 656.75p on the same date in 2022, but down 4.2% from 710.65p on December 31.

The stock was down 1.0% at 476.35p in London on Wednesday.

CT Private Equity's total NAV return for the first half of 2023 was negative 2.3%, compared with positive 4.3% for the first half of 2022.

"Most of this movement [in NAV] is attributable to currency movements with sterling having been relatively strong against both the euro and the dollar," explained Chair Richard Gray. "This reduces, in sterling terms, the value of the non-UK investments which is approximately half of our portfolio."

Portfolio companies were also affected by the pressures of higher inflation and interest rates, which were particularly quick to impact those with direct exposure to consumer demand changes or raw material cost increases.

The trust also declared a second quarterly dividend of 7.01p per share, up 0.9% from 6.95p for the first quarter.

Pretax profit meanwhile decreased 73% over the first half year, to GBP18.0 million from GBP66.3 million the year before.

Looking ahead, Gray reminded investors: "The broad range of investments provides exposure to many diverse business and economic trends and as previously noted is a source of resilience and protection against external pressures.

"The progress of our underlying companies so far this year against their original business plans and investment theses is encouraging and provides scope for positive developments in the second half of 2023."

By Emma Curzon, Alliance News reporter

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