Octopus Titan VCT Sees NAV Decline Amid Portfolio Challenges
Why we think this is bad
The RNS indicates that Octopus Titan VCT's net asset value has declined due to underperformance in a handful of its portfolio companies. This is a negative development for the investment trust, as it has led to a drop in NAV per share. The RNS notes that while many portfolio companies are showing good growth, the overall performance has been impacted by the weaker performers.
Key Points
- Unaudited NAV of 50.5 pence per share as of 31 December 2024
- Decline in NAV due to underperformance in a handful of portfolio companies
- Many portfolio companies continue to show good growth
- Around 60% of portfolio by NAV are profitable or have long cash runway
- Interim dividend of 0.5 pence per share declared, lower than target
Summary
Octopus Titan VCT plc has reported a decline in its unaudited net asset value (NAV) to 50.5 pence per share as of 31 December 2024. The Board and portfolio manager attribute this decrease to a handful of holdings, such as Pelago, that have underperformed expectations set at their last growth funding round.
However, the RNS notes that the portfolio companies continue to adapt to the challenging macroeconomic environment, and many are showing good growth. Around 60% of the portfolio by NAV are either profitable or have cash runway beyond July 2026, underscoring the stability the trust is reaching across its investments.
The Board has declared a further interim dividend of 0.5 pence per share for the period ended 31 December 2024, lower than the target annual dividend of 5% of opening NAV due to the ongoing performance challenges.