19th Nov 2024 16:35
(Alliance News) - Rockwood Strategic PLC on Tuesday said its net asset value has outperformed its benchmark indexes in the first half of its current financial year, despite a "challenging external environment".
The London-based investor in smaller UK public companies said net asset value total return for the six months that ended September 30 was 22.9%, compared to a 0.4% decline in the FTSE AIM All Share Index and a 13.2% increase in the FTSE Small Cap, excluding investment trusts.
Total shareholder return in the six-month period was 21.7%.
NAV per share on September 30 was 252.55 pence, up 23% from 206.04p on March 31 and 36% higher year-on-year from 185.16p.
Chair Noel Lamb said: "Performance during the period materially exceeded our target returns and relevant market indices. I am delighted that we have continued to grow and gain further investor support for this differentiated strategy during a period where outflows from UK equities have generally continued."
Rockwood Strategic swung to a pretax return of GBP15.2 million from a loss of GBP3.0 million the year before, as it also swung to a net gain of GBP16.7 million on investments at fair value, from a loss of GBP3.1 million last year.
Income grew 50% to GBP805,000 from GBP538,000, while total expenses multiplied to GBP2.2 million from GBP390,000.
Looking ahead, Investment Manager Richard Staveley said: "We believe that the stock market continues to materially undervalue our portfolio holdings. Identified measures to build profitability should offset, and in many cases exceed, negative impacts from a challenging external environment.
"Post-period end, the new government's budget measures included higher capital gains tax on profitable share investments, reduced inheritance tax reliefs designed to incentivise risk capital into the AIM market and no new specific measures to encourage further investment into the British stock market.
"The importance of a healthy listed market for small businesses is critical to allowing our best British businesses to scale up and we hope that the new government is not reverting back to the long period of neglect and indifference that had been occurring. However, yet again, as this performance period demonstrates, Rockwood is thriving in a challenging environment, and we intend to continue."
Shares in Rockwood Strategic were down 0.1% at 253.36 pence each in London on Tuesday afternoon.
By Emily Parsons, Alliance News reporter
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