Strategic Equity Capital PLC on Thursday announced a sharply higher payout as net asset value rose, as the company focuses on delivering sound long-term real returns.
The specialist alternative equity trust that maintains a portfolio of UK smaller companies said net asset value per share jumped 16% to 396.87 pence as at June 30 from 342.47p a year prior.
NAV total return for the financial year ended June 30 was 16.6%, an improvement from 9.2% a year ago but underperforming its comparative index, the FTSE Small Cap (ex Investment Trusts), which had a total return of 18.5%.
The company proposed a final dividend of 3.50p per share, up 40% from 2.50p a year ago.
The financial year ‘brought its fair share of challenges, with volatility driven by shifting macroeconomic conditions both in the UK and abroad. In the UK, inflation fell sharply, and despite a brief recession, the economy began to show tentative signs of growth towards the end of the period. Internationally, concerns over persistent US inflation and rising geopolitical tensions weighed on the markets,’ said Ken Wotton, managing director of Public Equity at Gresham House and the company’s fund manager.
He added: ‘Despite the uncertain backdrop our portfolio has performed robustly, supported by strong fundamentals and a focus on sectors with long-term growth potential. Many of our holdings outperformed expectations, reaffirming their resilience and our confidence in their ability to deliver consistent returns.’
Looking ahead, Chair William Barlow said: ‘Looking forward, our differentiated investment strategy continues to deliver results for our shareholders. Under the leadership of our Fund Manager, Ken Wotton, we’ve built a portfolio designed to deliver attractive long-term real returns. There is strong merger & acquisition interest in UK equities, with notable takeover approaches for portfolio companies such as Ten Entertainment Group and Alpha Financial Markets Consulting during the period.’
Strategic Equity shares were up 0.3% at 350.00 pence each on Thursday afternoon in London.
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