Octopus AIM VCT reports 4.4% annual loss amid market volatility

LONDON - Octopus AIM VCT plc reported a 4.4% negative total return for the year ended February 28, 2025, as its net asset value (NAV) declined to 50.6p per share from 63.3p in the previous year.

The venture capital trust, which invests primarily in AIM-traded companies, saw its total assets decrease to £115.4 million from £129.1 million a year earlier. The company declared a final dividend of 2.5p per share, resulting in a total dividend of 5.0p for the year, representing a 10.5% yield based on the year-end share price of 47.8p.

During the period, the FTSE AIM Index fell by 2.6%, underperforming the FTSE SmallCap Index which rose 10.7% and the FTSE All-Share Index which gained 18.4%. This divergence reflected investor preference for larger, more defensive companies over growth stocks in technology and healthcare sectors that form a significant portion of the VCT’s portfolio.

"The year ended 28 February 2025 was a tale of two halves for investors in smaller companies," said Neal Ransome, Chair of Octopus AIM VCT. "In the first half of the year, the FTSE AIM Index delivered positive returns of 5.8% as growth in the UK economy exceeded expectations. The returns in the second half were marred by policy uncertainty surrounding the new UK Government’s growth agenda."

The investment manager deployed £7.3 million into qualifying companies during the year, slightly down from £7.7 million in the previous year. The company maintained its required VCT qualifying investment level at 85.1% of the portfolio.

Market activity during the year included bids for portfolio companies Mattioli Woods plc, Learning Technologies Group plc, and Intelligent Ultrasound Group plc, which generated significant returns on initial investments.

Ransome, who will step down at the July 23 Annual General Meeting after nearly nine years on the board, expressed cautious optimism about the market outlook, citing potential interest rate cuts and government initiatives targeting innovation sectors.

The information in this article is based on a press release statement from Octopus AIM VCT plc.

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