Octopus Apollo VCT Reports Strong Annual Results with £24.1M Profit
Why we think this is good
The company has demonstrated a significant turnaround, moving from a loss to a substantial profit of £24.1 million. The total return of 5.1% and maintained dividend yield of 5% are positive indicators. Successful fundraising of £75 million and three profitable disposals show investor confidence and portfolio management skills. However, it's important to note that 20 companies in the portfolio saw valuation decreases, and macroeconomic challenges persist. The stable NAV and increased cash position provide a solid foundation, but the high market valuation relative to net assets suggests careful consideration of future growth expectations is needed.
Key Points
- Profit of £24.11 million, up from a loss in the previous year
- NAV per share stable at 50.5p
- Total return of 5.1% for the year
- Dividend maintained at 2.6p per share, meeting 5% yield target
- Successful fundraise of £75 million
- Valuation increases in 29 portfolio companies, decreases in 20
- Three profitable disposals returning £18.9 million
- Cash and liquid resources increased to £95.7 million (19.8% of net assets)
- Optimistic outlook, particularly for AI-related investments
- Acknowledgment of ongoing macroeconomic challenges
Summary
Octopus Apollo VCT plc has reported strong annual results for the year ended 31 January 2025. The company achieved a profit of £24.11 million, a substantial improvement from the previous year's loss. The Net Asset Value (NAV) per share remained stable at 50.5p, while the total return for the year was 5.1%. The company maintained its dividend at 2.6p per share, meeting its 5% annual dividend yield target. A successful fundraise of £75 million was completed, indicating strong investor confidence. The portfolio saw mixed performance, with valuation increases across 29 companies totaling £62 million, but also decreases in 20 companies totaling £23 million. Three profitable disposals were completed, returning £18.9 million in proceeds. The cash and liquid resources balance increased to £95.7 million, representing 19.8% of net assets. While the outlook remains optimistic, particularly regarding AI-related investments, the company acknowledges ongoing macroeconomic challenges.