12th Dec 2018 15:39
LONDON (Alliance News) - Income & Growth VCT PLC on Wednesday reported a growth in net assets in "another year of solid performance".
At September 30, the trust's net asset value per share was 78.32 pence compared to 81.24p last year, a 3.6% decrease.
The trust paid 108p dividends per share in the period, making its cumulative NAV total return at the end of the period 186.32p, up from 183.74p last year. Income & Growth VCT's NAV total return was 3.2%.
Income & Growth's net assets increased 28% in the period to GBP82.6 million from GBP64.4 million.
The trust attributed to the positive NAV return to its loan interest income exceeding costs and a rise in the value of its portfolio.
The trust's portfolio increased 2.9% in value to GBP49.4 million from GBP48.0 million the year before.
Income & Growth said the sale of Gro-Group for GBP1.7 million and Lightworks for GBP350,000 contributed the most gains to portfolio growth.
The trust said its portfolio also achieved a net increase of GBP570,000 on investments still held, with positive increases from Equip, Preservica and CGI, partially offset by valuation falls in Veritek, Idox and Wetsuit Outlet.
The trust proposed a final dividend of 3.50p, taking its total dividend for the year to 6.0p. Income & Growth VCT paid a 6p dividend last year but also had a 15p special dividend.
Chairman Colin Hook said: "Your board cautions that investing in earlier stage companies does involve increased risk and those that succeed often take longer to achieve scale. Returns may, therefore, take longer to emerge and may be more volatile.
"Unfortunately, the least successful investments are likely to emerge before the most successful. This is likely to cause a slower rate of financial progress to be anticipated in the earlier years, although it should be offset by more significant gains in the longer-term."
"The board and investment adviser have carried out an analysis of the possible impact of Brexit on the investment portfolio. This will be kept under review."
Shares in Income & Growth VCT were untraded Wednesday but last closed at 68.00 pence each.
Related Shares:
Inc&gwth Vct