9th Jun 2020 11:21
(Alliance News) - Odyssean Investment Trust PLC on Tuesday said its net asset value per share declined in its most recent financial year, though the company outperformed its comparator.
Shares in Odyssean were up 4.8% at 98.00 pence in London in morning trading.
As at March 31, the end of the trust's financial year, NAV per share was down 5.7% at 90.8p from 96.3p the year before.
However, this 5.7% drop did was better than 23% decline of the NSCI ex IC plus AIM Total Return Index, which Odyssean uses at a comparator but not a benchmark.
"Given the concentrated nature of the portfolio, performance has been driven largely by individual stocks. Portfolio companies Consort Medical and Huntsworth were bid for during the period, accelerating returns," said Chair Jane Tufnell.
Medical devices maker Consort Medical was bought by Recipharm Holdings Ltd back in February, while public relations firm Huntsworth was purchased by a US private equity firm early last month. Both were delisted from the London Main Market.
No final dividend was proposed by Odyssean, as it expects shareholder returns to be driven by capital growth of shares and not dividend income.
Tufnell said: "The portfolio management team has many years' relevant experience, which will help navigate the company's existing portfolio through these difficult times. This experience, allied with their long-standing knowledge of many of the other quoted smaller companies eligible for investment, and their stakeholders, means that they have a clear plan and strategy of how to hone the portfolio as well as selectively deploy capital over the coming weeks and months.
"The portfolio manager's conservative approach to gearing since launch and price discipline has led to the company having considerable cash and near cash resources to deploy into the current dislocated market. Notwithstanding the short-term uncertainties and volatility, long-term returns from this point are likely to reward holders well."
By Anna Farley; [email protected]
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