13th Jun 2019 09:32
(Alliance News) - Life sciences investor Syncona Ltd on Thursday reported a "strong" annual performance, with core life sciences firms doing well, while it is also to halt dividends.
Syncona is paying a 2.3 pence dividend for the year to March 31, but going forward, has decided to scrap its shareholder return.
"We announced last year the board would be reviewing the company's dividend policy. Syncona's investment objective is to achieve superior long-term capital appreciation by founding, building and funding global leaders in healthcare," said Syncona.
"Our companies are fast-growing and capital-intensive and therefore moving forward the directors believe it is no longer appropriate for Syncona to pay a dividend."
As of March 31, Syncona's net asset value per share was 216.8 pence per share, up 36% from 158.9p a year before, while the total return has improved to 38% from 19%.
In the life sciences portfolio, the total return has surged to 78% from 57%, mainly due to increases in the value of its investments in Blue Earth Diagnostics, immunotherapy company Autolus, and retinal gene therapy firm Nightstar.
"Syncona continues to perform strongly driven by significant commercial, clinical and financial progress across our life science companies this year," said Chief Executive Martin Murphy.
The company reported a 21% rise in investment income to GBP34.6 million, with profit surging to GBP411.3 million from GBP172.8 million.
Looking ahead, CEO Murphy said: "We enter this financial year with strong momentum across the business, a globally differentiated cell and gene therapy platform and a rich pipeline of opportunities to continue deploying capital and generating returns in life science.
"Our companies are well positioned as they scale and progress through the development cycle. Our long-term, strategic capital pool underpins the execution of our strategy to found, build and fund globally leading companies as we aim to deliver transformational treatments to patients and generate superior returns for shareholders."
Syncona has increased its capital deployment guidance, seeing GBP100 million to GBP200 million being spent rather than GBP75 million to GBP100 million envisaged before.
Syncona shares were 3.0% higher on Thursday morning at a price of 240.30p each.
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