Castelnau Group Ltd on Thursday said its net asset value decreased during its latest half year although its pretax loss narrowed, but said it is ‘still early days’ and is confident in its outlook.
The Guernsey-based closed-ended investment company said its net asset value at June 30 was 70.21 pence per share, down from 77.21p one year prior and from 75.02p at December 31.
Total return for the first half of 2023 was negative 6.41%, compared with negative 17.47% the year before. This underperformed against its benchmark, the FTSE All Share Total Return Index, which delivered a positive 2.61% return following negative 4.6%.
Castelnau said prices decreases for investees Hornby PLC, which represents 6.0% of its portfolio, and Cambium International Ltd, which represents 5.4%, were the main contributors to its underperformance.
Castelnau also reported a £15.3 million pretax loss, following its £30.1 million loss the previous year. Income surged to £966,768 from £47,028, but expenses likewise multiplied to £2.7 million from £433,501.
Chair Joanne Peacegood added that the ‘highlight’ of Castelnau’s second full half year since its initial public offering in 2021 was its acquisition of Dignity PLC in May through a joint venture with SPWOne V Ltd and Phoenix Asset Management Partners Ltd.
Peacegood reassured shareholders that the takeover ‘aligns with [Castelnau’s] long-term investment goals,’ and that ‘this investment will contribute positively to our overall performance in the future.’
‘It is still early days for the company,’ she said, adding: ‘In conclusion, while we acknowledge the disappointment...we remain steadfast in our long-term vision. The journey is not without its challenges, but we believe in the resilience of our portfolio and the capabilities of the investment manager and its partners to navigate through these times.’
Peacegood continued: ‘The company has a clear vision and strategy for growth and we are well-positioned going into H2 2023. We remain committed to delivering value to our shareholders and are confident that the outlook for the company is very promising.’
Castelnau shares were down 0.7% at 72.00 pence on Thursday in London.
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