Income & Growth VCT PLC on Monday reported a decline in net asset value, but increased its dividend as it expected challenges to remain.
The London-based venture capital trust said net asset value per share was 79.33p as at September 30, down 5.3% from 83.73p a year prior.
NAV total return swung to positive 4.3% from negative 8.7%. ‘The increase was principally the result of positive valuation movements across three of the five largest investments by value, in particular, Preservica, as well as higher interest income generated on cash held awaiting investment,’ Income & Growth said.
Dividends for the financial year ended September 30 total 11.00 pence, up 38% from 8.00p a year ago.
Looking ahead, the company expects the geopolitical and economic outlook for the next 12 months to ‘remain challenging’.
It said: ‘We anticipate that further stresses will become apparent across the UK business population over the coming year with no sectors immune from the impact. Nevertheless, the Company’s portfolio is managed by a professional and capable Investment team, to respond to the challenges which lie ahead.’
Income & Growth shares rose 2.2% to 69.00 pence each on Monday afternoon in London.
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