8th Jan 2019 17:56
LONDON (Alliance News) - Hargreave Hale AIM VCT PLC on Tuesday said it outperformed its closest benchmark in its most recent financial year, following the acquisition of Hargreave Hale AIM VCT 2 PLC in March, but has seen a sharp decline more recently.
The venture capital trust net asset value total return for its year to September 30 was 13%, while the FTSE AIM All-Share Total Return Index - which Hargreave Hale considers to be its closest comparable index - was 11%.
In the year, Hargreave Hale AIM's net assets grew to GBP154.8 million from GBP66.0 million, with a majority GBP56.6 million of this increase attributable to its Hargreave Hale AIM VCT 2 acquisition in March 2018.
At at September 30, the company's net asset value stood at 87.59 pence, up from 80.82p the year before.
Hargreave Hale AIM declared a final dividend of 2.65p per share, bringing total dividends for the year to 5.40p per share, rising from 4.00p the year before.
Subsequent to its successful year, Hargreave Hale AIM suffered a "difficult first quarter" in which its net asset value dropped to 73.05p in the three months to December 31 - a fall of around 16% after adjusting for dividends paid.
"We can expect a turbulent ride in terms of our NAV until some clarity becomes evident. That said the outlook for most of our investments remains positive as mostly they are good, well run companies which will adapt to any new regulations to which they are exposed," said Hargreave Hale AIM Chair Aubrey Brocklebank.
"We expect to see a number of new unlisted investments in the forthcoming months. Whilst the current uncertainty may reduce the number of AIM [initial public offerings] in the short term, we expect further opportunities to arise from our existing portfolio," Brocklebank added.
Shares in Hargreave Hale AIM closed up 2.2% at 71.00 pence on Tuesday.
Related Shares:
Hargreave