24th Sep 2014 11:07
LONDON (Alliance News) - North Atlantic Smaller Companies Investment Trust PLC Wednesday said its diluted net asset value rose by 4.4% over the six months to end -July, underperforming a 5.4% rise on the sterling adjusted Standard & Poor's Composite Index.
It said it had suffered from the high level of cash held in its portfolio, most of which is held in US dollars.
The trust said it isn't expecting much from the listed portfolio over the second half due to sluggish economic growth, disappointing profits, political unrest and the widely-expected increase in interest rates, but it is expecting a good performance from the unlisted assets in its portfolio.
"The unquoted portfolio continues to show promise and should continue to generate substantial cash over the balance of the year as Hampton sells off its portfolio of properties. Celsis and Performance Chemicals in particular continue to have exceptional prospects for growth," the trust said.
Its performance in the six months to end-July was as follows:
| 31 July 2014 | restated* 2014 | % |
Net asset value per 5p Ordinary Share**: |
|
|
|
Basic | 2,097p | 2,006p | 4.5 |
Diluted | 2,078p | 1,991p | 4.4 |
Basic adjusted#‡ | 2,158p | 2,054p | 5.1 |
Diluted adjusted#‡ | 2,137p | 2,037p | 4.9 |
Mid-market price of the 5p Ordinary Shares | 1,750.0p | 1,600.0p | 9.4 |
Discount to diluted net asset value**# | 15.8% | 19.6% |
|
Discount to diluted adjusted net asset value**‡ | 18.1% | 21.5% |
|
Standard & Poor's 500 Composite Index† | 1,143.4 | 1,084.40 | 5.4 |
Russell 2000 Index† | 663.3 | 688.0 | (3.6) |
FTSE All-Share Index | 3,585.6 | 3,496.5 | 2.5 |
US Dollar/Sterling exchange rate | 1.6883 | 1.6435 | 2.7 |
# Under IFRS 10, adopted for the first time in this half-yearly report, the Company accounts for its investment in Oryx International Growth Fund plc at the value of its listed shares. Previously, the Company equity accounted for its share of Oryx's net assets. This change has a material effect on the net assets of the Group as explained in notes 1c and 5.
* Restated due to adoption of IFRS 10 resulting in the Company no longer requiring to consolidate investment entities as explained in note 1c.
** Including retained revenue for the period.
‡ Calculated using the adjusted Net Assets per note 5.
† Sterling adjusted.
By Steve McGrath; [email protected]; @stevemcgrath1
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