Miton UK MicroCap Trust PLC said on Tuesday that its net assets fell in a difficult financial year for the company, reflecting geopolitical and economic disruptions.
The London-based investor in small cap companies, measured by their market capitalisation, said its net asset value per share on April 30 dropped 29% to 64.20 pence from 91.05p at the same point the prior year.
Shares in Miton UK Microcap Trust were down 0.1% at 52.45 pence in London on Tuesday.
Chair Ashe Windham said: ‘Generally, the share prices of some small caps further up the market capitalisation range did pick up a little during the second half of the year, but at this stage most microcap share prices remain deeply depressed and almost wholly underappreciated.’
The company’s total net assets dropped 39% to £60.8 million, from £99.5 million the prior year, which the company explained reflected this ‘very testing’ period for equities with geopolitical and economic headwinds buffeting the market.
The company recommended maintaining its final year dividend of 0.15 pence per share, unchanged from the prior year.
‘As far as setting the dividend is concerned, the directors have always given the manager maximum flexibility to follow the course that will lead to the best results for shareholders,’ said Miton UK Microcap Trust.
Looking forward, the trust believes it has the potential to have ‘bursts of strong returns’.
‘When quoted microcaps start at what we consider to be extraordinarily low valuations, combined with such modest institutional allocations, favourable trends such as these can be easily sustained over the coming decade or two,’ said Miton UK Microcap Trust.
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