Baillie Gifford UK Growth Trust lowers payout as NAV declines annually

Fri, 16th Jun 2023 11:31

(Alliance News) - Baillie Gifford UK Growth Trust PLC on Friday reported an annual decline in net asset value, as property developer Helical PLC and venture capital firm Molten Ventures PLC were cited as the largest detractors.

Baillie Gifford UK Growth Trust is a London-based investment firm focused on capital growth over the long-term from investment primarily in shares of listed UK companies.

The company said net asset value as at April 30 was 195.6 pence per share, down 0.9% from 197.4p a year prior. NAV total return, however, was positve 1.1%, compared to the FTSE All-Share Index returning positive 6.0%. Shares in issue declined by 1.9% to 150.5 million from GBP153.5 million.

Meanwhile, the company turned to an annual pretax profit of GBP2.2 million from a loss of GBP57.5 million, as net loss on investments narrowed to GBP2.5 million from GBP63.0 million.

Baillie Gifford UK Growth Trust said the largest detractors were technology-focused venture capital firm Molten Ventures , information technology-focused professional services company FDM Group Holdings PLC, and property developer Helical. The company noted that "not holding BP was also a notable detractor".

It recommended a final and total dividend of 3.60p per share, down 7.9% from 3.91p a year ago.

Looking ahead, Chair Carolan Dobson said the vast majority of holdings in the portfolio "are expected to grow well in excess of the market and are high quality and resilient," despite an uncertain broader macro-economic environment.

Baillie Gifford UK Growth Trust shares were 0.7% higher at 170.60 pence each on Friday morning in London.

By Tom Budszus, Alliance News reporter

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