3rd Oct 2025 11:32
(Alliance News) - Foresight VCT PLC on Thursday last week said some investees had been impacted by difficult domestic market conditions, but expressed optimism as it said it continues to "see a promising pipeline of potential investments."
The investor in UK small and medium-sized enterprises said it net asset value per share fell 14% to 70.9 pence at June 30, from 82.0p at December 31.
Following the addition of 10.5p in dividends during the period, NAV total return was minus 0.7%.
The trust reported a "successful period of realisations", having paid out a special dividend of 6.4p per share in May, which returned GBP19.3 million to shareholders.
It added that its final dividend for 2021 of 4.1p led to a payout of GBP12.4 million to shareholders.
The trust noted that the decline in the value of its investment portfolio fell during the period, owing this primarily to a successful realisation and a loan repayment, generating GBP24.4 million. It added that this was compounded by a GBP3.4 million decline in the valuation of the remaining investments, which was offset in part by GBP7.7 million in new and follow-on investments.
Foresight VCT said the combination of "anaemic growth, inflation and recent tax increases for employers" has created a "challenging domestic economic landscape" in the UK, with it noting the prospect of further tax increases in the upcoming budget.
Other causes for uncertainty cited by the company included US tariffs and the conflicts in the Middle East and Ukraine, noting that these "depressed sentiment" throughout the interim period.
Foresight VCT said its portfolio companies performed "reasonably" on aggregate against the difficult backdrop, but noted that some individual investees are "struggling" in the face of weak consumer demand, inflation, and labour shortages.
However, it added that "some investee companies are flourishing and we are encouraged by some very profitable exits recently."
Shares in Foresight VCT were 4.5% lower at 64.00 pence on Friday morning in London.
"The company’s current portfolio of investments is highly diversified by number, business sector, size and stage of development and overall has already demonstrated its relative resilience in recent difficult economic and geopolitical circumstances. We are confident that this approach will continue to provide some protection in future volatile market conditions," said Chair Margaret Littlejohns.
"The manager is continuing to see a promising pipeline of potential investments, both new and follow-on, which are sourced nationally through its established regional network. In addition to the funds raised earlier in the year, we have recently announced our intention to raise further funds in the coming months. These combined funds will provide the necessary resources to make selective acquisitions from an increasing number of emerging investment opportunities," added Littlejohns.
By Christopher Ward, Alliance News reporter
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