14th Jan 2019 14:23
LONDON (Alliance News) - Unicorn AIM VCT PLC on Monday said the value of its portfolio "experienced a meaningful decline" in the first quarter of its financial year due to a tumultuous market.
The venture capital trust's net asset value fell 17% to 141.8 pence per share on December 31 from 171.9p per share on October 1.
This was attributed to an extremely challenging period for UK equity markets, including Brexit uncertainty, a US-China trade war, concerns over a Chinese economy slow-down, and deteriorating results from high-vale quoted companies.
"Your company has not been immune from the wider market turmoil. Although performance in the period was not specifically impacted by profit warnings from any of our investee companies, the value of the portfolio as a whole nonetheless experienced a meaningful decline," Unicorn AIM said.
Most of the 79 VCT-qualifying investments in Unicorn AIM's portfolio recorded share price declines in the period and eight posted unrealised capital losses exceeding GBP1 million each.
Non-qualifying investments were similarly hurt, Unicorn AIM said.
During the three months, six VCT-qualifying investments were made at a cost of close to GBP3 million. Two were in new businesses and four were follow-on funding for existing investments.
The trust raised nearly GBP2.5 million from partial disposals of a number of holdings in the period. Its Communisis PLC and Sinclair Pharma PLC investments were acquired by trade buyers and realised GBP2.3 million of proceeds for a GBP500,000 investment gain.
In addition, its Science Group PLC holding was also realised and raised GBP1.0 million for an GBP800,000 capital gain.
Unicorn AIM declared a final 3.5p per share dividend for its financial year, which ended September 30. This was approved by shareholders at its annual general meeting on Thursday last week and will be paid February 1.
This will bring Unicorn AIM's total dividends for its financial 2018 year to 6.5p.
As stated in December, the trust is looking to to raise GBP15 million via a share issue. A prospectus with full offer details will be available at the end of January.
"We remain confident that we have a well diversified portfolio of interesting companies of varying maturities. While stock markets may well remain volatile in the short term, we are cautiously optimistic that, once the outcome of the Brexit negotiations becomes clear, the portfolio performance should become more positive," said Unicorn AIM.
Shares in Unicorn AIM were flat at 120.00 pence on Monday.
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