(Alliance News) - Unicorn AIM VCT PLC on Monday reported a deterioration in its first-half performance, declaring an interim payout and then putting its dividend policy under review.
The stock closed untraded on Monday in London, last quoted at 119.00 pence each.
The venture capital trust said that for the six-month period ended March 31, net asset value per share fell 11% to 128.4 pence from 144.4p the year prior. As at the end of September, NAV per share was 153.9p each.
NAV total return was negative 14.3%. The FTSE AIM All-Share Total Return Index fell by 21.3%. Net assets as at the end of March were GBP167.0 million, down by GBP11.3 million year-on-year and GBP34.1 million lower than at the end of September.
For the first four months of its first half, NAV increased by 10.8%. However, the emergence of the Covid-19 pandemic and the subsequent economic damage caused performance to decline in the two months from February 1 to the end of March.
Unicorn declared an interim dividend of 3.0p unchanged from the year prior. However, it said it will keep its dividend policy "under careful review" amid the pandemic.
Hazardous waste treatment & disposal company Augean PLC, IT solutions provider Instem PLC, video games service provider Keywords Studios PLC, online educational services provider Wey Education PLC, and contamination control products manufacturer Tristel PLC contributed positively to performance.
However, testing systems maker AB Dynamics PLC, Surface Transforms PLC, pub owner City Pub Group PLC, surface coating firm Hardide PLC and media company Bonhill Group PLC detracted from performance.
Looking ahead, the trust said that while the environment is currently uncertain, it believes most of the companies in its portfolio will survive and see an up-tick in future.
"The majority of companies held in the portfolio should survive and recover value in due course. A number of these businesses continue to trade reasonably well, while some are either already beneficiaries of, or have an opportunity to benefit from, the pandemic," said Chair Timothy Woodcock.
Unicorn added that it has implemented measures to ensure it continues to operate such as retaining higher than usual levels of cash, limiting new investment activity, and disposing of holdings where necessary.
The company said Peter Dicks has retired as a non-executive director effective immediately. Dicks was chair from the launch of the company until January 2020.
"On behalf of the company's shareholders and the board, I would like to thank my predecessor, Peter Dicks for his excellent stewardship of the company over the past eighteen years and wish him well for the future. I know he will continue to take a great interest in our progress," said Woodcock.
By Ife Taiwo; ifetaiwo@alliancenews.com
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