29th May 2024 10:47
(Alliance News) - Octopus Apollo VCT PLC on Wednesday said net asset value decreased in its latest financial year, as external headwinds harmed many of its investees.
The London-based venture capital trust, which backs higher-risk small businesses, said NAV per share at January 31 was 50.5 pence, down from 53.2p per share a year prior.
Shares in Octopus Apollo were untraded, quoted at 47.10p on Wednesday morning in London. They last traded at 48.60p on Friday.
NAV total return for the year that ended January 31 was zero, dropping from positive 11.2% in financial 2023.
The flat total return was thanks to the VCT raising its total dividend for the year to 2.7p per share from 2.6p.
"I am satisfied with this stable and consistent result when it is set against the challenging global macroeconomic backdrop of the past few years, and it is a testament to the resilience of the underlying portfolio companies," commented Chair Murray Steele.
Steele continued: "The geo-political turbulence and macro-economic headwinds have impacted the underlying portfolio companies.
"We have seen growth rates slow down resulting in lower valuations as companies work through the tougher trading environment, including elongated sales cycles."
Some were "more affected than others", he added, but "the recurring revenue models of most of the companies in the portfolio have offered some protection against the current market volatility".
Going forward, Steele said: "We are starting to see some green shoots of recovery with more activity on the listed markets, interest rates starting to stabilise and inflation beginning to moderate.
"However, we anticipate a slow and unpredictable route to recovery. The UK general election creates some uncertainty, global economies are projected to experience growth below their typical rates and there is no uncertainty on geopolitical stability."
By Emma Curzon, Alliance News reporter
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