(Alliance News) - Unicorn AIM VCT PLC on Wednesday said it failed to achieve a positive annual total return for the first time in ten years, and warned that political uncertainty in the UK may mean its share price remains "volatile".
In the year ended September 30, its net asset value per share fell by 10% to 153.9 pence from 171.9p last year. It did however represent a 6.6% rise from its interim net asset value per share of 144.4p.
Shares in Unicorn were untraded on Wednesday morning in London, last quoted at 137.00p each.
The venture capital trust held its full-year dividend at 6.5p per share. After adding back dividends, the trust delivered a total return of negative 6.6%, compared with a 9.3% uptick last year.
Unicorn said: "The financial year ended September 30 proved to be a challenging period for the Alternative Investment Market and, as a result, the company struggled to make headway, ultimately failing to deliver a positive total return to shareholders for the first time in ten years. Although it is always disappointing to report on a year during which total returns have been negative, it is nonetheless encouraging to note that performance overall was relatively resilient."
"During the twelve-month period ended 30 September 2019, the FTSE 100 Index delivered a modestly positive total return of 3.2%, while the FTSE AIM All-Share Index fell sharply over the year, generating a negative total return of 19.4%," the trust continued.
Two of Unicorn's worst performing investments were life science research software firm Abcam PLC, which saw its share price fall "quite sharply over the course of the year", and animal feed firm Anpario PLC, which was hurt by an outbreak of African swine fever and the ongoing trade dispute between the US and China.
Waste management firm Augean PLC was one of the better performers on Unicorn's books, with the firm reporting "a continued recovery in its key markets", the trust explained.
Looking ahead, Unicorn said: "The increasingly volatile political situation in the UK and lack of clear direction has begun to have a negative impact on the UK economy. While high levels of political division and economic uncertainty continue to unsettle UK equity markets, it is likely that the company's NAV performance may remain volatile.
"This election is scheduled to take place on December 12, 2019 and shareholders should be aware that the outcome may create considerable additional risks to performance. For example, if the vote results in a 'hung' parliament, with no obvious prospect of achieving a workable coalition, then it is unlikely the UK equity market will respond favourably."
By Eric Cunha; ericcunha@alliancenews.com
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Anpario (ANP)
Unicorn Asset Management (UAV)