20th Feb 2026 17:33
(Alliance News) - Strategic Equity Capital PLC on Friday reported total net asset value growth in the first half of the financial year, and it hailed a "compelling" valuation outlook for UK smaller companies.
The investor in UK smaller firms said its NAV per share grew by 0.8% to 395.53 pence at its December 31 half-year end, from 392.47 pence on June 30. On-year, it climbed 10%.
Strategic Equity shares closed down 2.8% to 394.00 pence on Friday in London.
The NAV total return over the six-month stretch was positive 1.8%, improving from negative 8.8% a year prior. Nonetheless, it undershot the comparative index, which returned 3.1%. The comparative is the FTSE small cap (ex investment trusts) index.
"Market sentiment towards UK equities, and UK smaller companies specifically, remained subdued during the period. The differential between the strong performance of the FTSE 100 and more modest returns across smaller company indices continued, reflecting concentrated large-cap gains alongside broader risk aversion," the company said.
"The board maintains that the valuation opportunity within UK smaller companies remains compelling. Public market valuations for UK smaller companies are at historically depressed levels relative to both larger UK stocks and international peers, creating a meaningful relative value opportunity. This valuation disconnect continues to attract corporate interest, contributing to elevated levels of takeover activity and private equity engagement. The board believes this dynamic will support realisation opportunities over time and underscores the importance of patient capital in capturing intrinsic value."
By Martin Miraglia, Alliance News reporter
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