Octopus Titan VCT Reports £147.6m Loss and NAV Decline in 2024 Results
Why we think this is bad
The financial results for Octopus Titan VCT paint a concerning picture. The company reported a substantial loss of £147.6 million, and while this is a slight improvement from the previous year, it's still a significant negative. The Net Asset Value (NAV) per share has declined considerably from 62.4p to 50.5p, indicating a material erosion of shareholder value. The total return per share was negative at -14.1%, which is worse than the previous year's performance. Additionally, the company's net assets and cash position have both decreased. The outlook remains challenging, with ongoing performance issues and a difficult macro environment mentioned. While the company has made some new investments, the overall financial health and market conditions suggest continued headwinds for the VCT.
Key Points
- Loss after tax of £147.6 million, slightly improved from £149.5 million in 2023
- NAV per share decreased from 62.4p to 50.5p
- Total value per share declined from 164.4p to 155.6p
- Negative total return of 14.1%, worse than previous year's -12.4%
- 8 new investments and 14 follow-on investments made, totaling £30 million
- Cash and cash equivalents decreased from £112.0 million to £93.8 million
- Net assets fell from £993.7 million to £831.4 million
- Ongoing challenges due to difficult macro environment and portfolio company underperformance
- Dividend of 0.5p per share declared, lower than previous year's 1.9p
Summary
Octopus Titan VCT's 2024 results reveal ongoing challenges, with a loss after tax of £147.6 million and a decline in NAV per share from 62.4p to 50.5p. The company's total value per share decreased to 155.6p, with a negative total return of 14.1%. Despite making 8 new investments and 14 follow-on investments totaling £30 million, the VCT faces significant headwinds due to challenging market conditions and portfolio company underperformance. The cash position has decreased to £93.8 million, and net assets have fallen to £831.4 million. The outlook remains uncertain, with ongoing performance issues and a difficult macro environment likely to continue impacting the portfolio.