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(Alliance News) - Forward Partners Group PLC on Wednesday said it expects its net asset value to decline due to the recent fall in high growth technology stocks.

Forward Partners is an investment firm focused on high-growth, early stage technology businesses.

For June 30, the firm expects its net asset value to be at least 83.4 pence per share, down 20% from 104.1p a year prior.

Further, the Ventures Portfolio Value is set to fall by at worst 15%, to GBP92.0 million from GBP108.0 million.

The London-based company added it will wind down its subsidiary Forward Partners Venture Advance Ltd, following a review against its primary objective to create long-term sustainable shareholder value.

In 2021, "Advances generated revenue of GBP366,000 and recorded a loss after tax of GBP1.1 million," Forward explained. Costs of the subsidiary, including the wind down, will total around GBP2.8 million.

"The group will use the capital conserved to support Ventures [portfolio] in investing into new technology businesses with strong fundamentals and existing portfolio companies that we know and trust. Our forecasts show that a managed wind down of Advances will reduce operating costs and, over time, strengthen the group's balance sheet," Forward said.

The company added its underlying portfolio remained strong, expecting an average revenue growth of 40% to 60% in the fair value of the top 15 portfolio investments for 2022. "These are based on portfolio company forecasts and assume no further material deterioration in the economy or public technology stocks that the company utilises in comparable valuations," it cautioned.

Forward Partners shares were untraded at 46.00 pence each in London on Wednesday.

By Tom Budszus; tombudszus@alliancenews.com

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