Baronsmead Venture Trust Reports 6.4% NAV Decline Amid Economic Uncertainty
Why we think this is bad
The 6.4% decrease in Net Asset Value (NAV) per share is a significant concern, reflecting challenges in the portfolio. While some investments show resilience, the overall decline in NAV, coupled with heightened global economic and political uncertainty, paints a troubling picture. The successful fundraising of £20.3mn provides some liquidity, but it doesn't offset the underlying performance issues. The outlook remains challenging with continued macroeconomic and geopolitical headwinds expected to impact investments.
Key Points
- NAV per share decreased 6.4% to 49.4p
- £20.3mn funds raised in the period
- AIM-traded portfolio value decreased 12.8%
- Unquoted portfolio value remained flat
- Interim dividend of 1.75p per share declared
- Two new unquoted investments totalling £1.5mn made
- Nine follow-on investments with a combined value of £2.1mn
- Continued macroeconomic and geopolitical headwinds expected
Summary
Baronsmead Venture Trust plc reported a 6.4% decrease in Net Asset Value (NAV) per share to 49.4p for the six months ended 31 March 2025. The decline was attributed to heightened global economic and political uncertainty, particularly impacting the AIM-traded portfolio which decreased by 12.8%. Despite these challenges, the company successfully raised £20.3mn in funds during the period. The unquoted portfolio remained flat, with some investments showing positive momentum. However, the outlook remains cautious due to continued macroeconomic and geopolitical headwinds. The company declared an interim dividend of 1.75p per share, aiming to maintain its dividend policy objective of a 7% annual yield based on the NAV at the beginning of the financial year.