Octopus Titan VCT PLC on Wednesday said its net asset value drooped in 2023, as the portfolio felt the sting of an ‘ongoing difficult global macro environment’.

The London-based venture capital trust, which hosts a portfolio of over 145 early-stage companies, said its net asset value per share was 62.4 pence as at December 31, down 19% from 76.9p at the end of 2022.

Net assets totalled £993.7 million at the end of the year, down from £1.05 billion.

Total return per share for the year was a negative 12.4% for the year, improved from a 22.5% loss a year prior.

Octopus said the loss in NAV over the year was due to ‘the widespread impact of the ongoing difficult global macro environment’, which took its toll on companies within the portfolio.

‘With funding conditions being more challenging, many portfolio companies have prioritised extending cash runways instead of growth, looking to either achieve profitability or delay fundraising until more favourable market conditions return,’ it added.

Octopus paid 5.0p in dividends in 2023, unchanged from 2022. An interim dividend of 1.9p per share was declared in respect of 2023 by Octopus in March, down from its interim dividend of 3.0p a year prior.

‘2023 has been another challenging year and, with the UK officially entering a recession in February 2024 and the expectation that interest rates will not start to fall until the end of 2024, it is unlikely that recovery will be near

term’, Octopus said.

Shares in Octopus went untraded in London on Wednesday. The stock was last quoted at 58.03 pence on April 18.

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