6th Dec 2019 17:51
(Alliance News) - Income & Growth VCT PLC said Friday reported a growth in net assets in "another year of good performance".
At September 30, the trust's net asset value per share was 79.12 pence, up from 78.32p the same time last year.
Income & Growth's net assets during the period came in at GBP81.7 million, down from GBP82.6 million last year.
The company said the total return for the year was attributable to the sale of investments in Plastic Surgeon and ASL Technology and an uplift in the value from the existing portfolio. It also said it saw another year of good revenue returns, arising mainly via income from loan stock investments.
Further, the trust said it has a healthy pipeline of growth capital opportunities and the mature portfolio from the previous venture capital trust rules has continued to perform steadily.
The trust paid two interim dividends of 4.50 pence and 1.50p taking its total dividend for the year to 6.0p, meeting the annual target for the year. Income & Growth VCT paid a 6.0p dividend last year.
Chair Jonathan Cartwright said: "Your board considers that your company is well positioned, with a portfolio still including relatively mature investments providing an income return, and an increasing proportion of younger, growth capital companies seeking to achieve scale. The strong result achieved for the year reflects growth and valuation increases in both elements of the portfolio, underpinned by two profitable realisations.
"As has already been stated, there is a healthy pipeline of potential new investments although, with significant funding available across the VCT sector as a whole, leading to upwards pressure on entry prices, it is increasingly important to identify the most attractive opportunities and to work with potential investee businesses to facilitate the optimal operating and financing structures to foster their growth and to deliver attractive returns."
The stock closed down 1.4% at 70.00p on Friday.
By Arvind Bhunjun; [email protected]
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