British Smaller Cos VCT PLC and British Smaller Companies VCT2 PLC on Friday reported no quarterly net asset value progress amid tough market conditions.
Both venture capital trusts are managed by YFM Equity Partners.
British Smaller Cos VCT said its NAV per share fell by 0.8% to 85.00 pence on September 30, from 85.70 pence on March 31.
The venture capital trust said total dividends for the year so far amount to 8.5p per share, down from 9.00p year-on-year.
‘It is undoubtedly a turbulent time for the UK economy, characterised by high rates of inflation and rising interest rates, coupled with a period of political instability. This has fed through to equity markets, where decreasing share prices have reduced the underlying multiples that the company applies to value its investments,’ Chair Rupert Cook said.
Meanwhile, British Smaller Co VCT2 also posted a fall in net assets due to a volatile economic environment.
Its net asset value per share at September was unchanged quarter-on-quarter at 60.3p.
‘In the face of a challenging economic environment, portfolio companies are to date proving themselves to be adaptable and resilient. It is expected that in these testing times, demand for equity capital from the UK’s smaller innovative businesses will increase,’ the company said.
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