6th Jun 2024 10:12
(Alliance News) - Edinburgh Worldwide Investment Trust PLC on Thursday said it sees signs of improvement amid ongoing economic volatility.
The Edinburgh, Scotland-based fund managed by Ballie Gifford & Co Ltd specialises in immature and entrepreneurial companies with a sub USD5 billion market capitalisation.
In the six months ended April 30, pretax net return stood at GBP36.8 million, improving from a GBP58.7 million pretax net loss the year prior.
Net asset value per share fell to 160.72 pence each, down 12% year-on-year from 182.78p.
However, compared with 151.06p at October 31, the fund improved by 6.4%, albeit underperforming the S&P Global Smaller Companies Index which in turn rose 15%.
Edinburgh Worldwide finished the half with GBP7.8 million cash and cash equivalents, improving from GBP1.1 million at the same point last year.
Chair Jonathan Simpson-Dent said: "Whilst it is encouraging to see early signs of Edinburgh Worldwide's net asset value improving and its discount narrowing, the board is highly sensitive to the fact that maintaining a long-term perspective can be difficult in volatile markets."
In the six-month period the trust repurchased 4.1 million shares, 1% of its issued share capital, through 92 transactions for a total consideration of GBP5.9 million.
"The higher interest rate environment has dampened valuations of many businesses in the portfolio. This has also deterred many private companies from coming to the public markets," Simpson-Dent added.
Looking ahead, Edinburgh Worldwide will focus on long-term returns. Although after exiting nine investments in the last interim period, the portfolio manager will continue with an active approach to management in the current economic climate.
American Superconductor Corp and Nanobiotix SA were added to the portfolio after they raised additional capital to bolster their growth, meanwhile Oxford Nanopore PLC was bought due to its strategic positioning and low valuation.
Edinburgh Worldwide shares were down 0.5% to 143.50 pence each in London on Thursday morning.
By Elijah Dale, Alliance News reporter
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