18th Jan 2024 11:26
(Alliance News) - Edinburgh Worldwide Investment Trust PLC on Thursday said its net asset value plunged by just under 24% in its latest year.
The Edinburgh-based trust, which invests primarily in UK securities, said its net asset value at October 31 was 151.06 pence per share, down from 197.70p at the same time in 2022.
The company said the total return for its comparative index, the S&P Global Small Cap Index, decreased by 4.3% in sterling terms.
The trust moreover did not recommend a final dividend, unchanged year on year, citing its negative 0.65p per share net revenue return.
Edinburgh Worldwide said that for the year that ended on October 31, its net pretax loss narrowed to GBP182.5 million from GBP542.1 million.
The firm's loss on investments narrowed to GBP174.9 million from GBP528.3 million. Investment management fees decreased to GBP4.2 million from GBP5.1 million, and it made currency gains of GBP2.8 million following the previous year's GBP6.1 million loss.
"Current market conditions, which have been characterised by extreme volatility, short-termism and risk aversion have meant these are seriously testing times for long-term, conviction-based investors," commented Chair Henry Strutt. "However, while we should not dismiss the impact on our shareholders of the recent setbacks in performance, we are reassured by the fact that the underlying operational performance of our portfolio has been strong."
Edinburgh Worldwide also said that it was reassured by the majority of its portfolio companies, which it said have robust balance sheets, good cash positions and bright prospects regardless of macro-economic conditions.
"There are increasing signs that we are at the top of the interest rate cycle and the reduction in risk appetite we have seen recently is starting to unwind," Chair Strutt continued. "While we cannot be complacent or assume that recovery in valuations will be a straightforward or immediate process, we see early signs of improvement and genuine prospects for robust returns as conditions normalise over time."
Edinburgh Worldwide shares rose 1.8% to 147.20p each on Thursday morning in London.
By Emma Curzon, Alliance News reporter
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