21st Jun 2024 14:40
(Alliance News) - Worsley Investors Ltd on Friday noted that the UK was leaving its recession behind amid falling inflation and the prospect of interest rates cuts, as it reported a decline in net asset value.
The investor focused on "undervalued securities" and currently realising real estate assets said net asset value per share declined 1.1% to 43.45 pence per share as at March 31, when its financial year ended, from 43.92p a year prior.
NAV total return for financial year 2024 was negative 1.1% compared to positive 10% a year prior and sharply underperforming against its benchmark, the FTSE All Share index, which had a return of positive 8.4%.
Worsley said: "After nearly six months of this year, UK stock market prices, notwithstanding some setbacks, are up 5.2% and stand at close to their all-time highs, reflecting the UK moving out of recession and with falling inflation holding out the prospect of interest rate cuts."
It added: "The strength of the British market is despite our observation in the interim report, that the delays in the impact of tighter UK monetary policy, meant the prospects for UK company earnings in the first half of 2024 were subdued, proving to be broadly correct. Although positive factors for UK earnings growth continue to build, these must be weighed against the uncertainties around potential changes of government in the UK, Europe and the US, heightened geopolitical risk and the carryover effect of the recession at the end of 2023."
Worsley shares were flat at 25.80 pence each on Friday afternoon in London.
By Tom Budszus, Alliance News slot editor
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