North Atlantic Smaller Companies Investment Trust plc (the “Company”)
Financial Results for the Year Ended 31 January 2024
The Company today announces its financial results for the full year ended 31 January 2024.
Company Registered Number: 1091347
objective of the company and financial highlights
The objective of the Company is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean.
| 31 January 2024 | % change | 31 January 2023 | 31 January 2022 | 31 January 2021 | 31 January 2020 | |
| return | ||||||
| Return for the year (£’000) | 2,148 | 102.4% | (91,038) | 64,906 | 130,078 | 98,852 |
| Basic return per 5p Ordinary Share:* | ||||||
| – Revenue | 90.39 | 176.8% | 32.65 | 9.94 | 3.76 | 41.24 |
| – Capital | (74.49) | 89.3% | (699.41) | 456.30 | 916.57 | 652.92 |
| Dividend per 5p Ordinary Share (declared) | 68.5p** | 22.0p | nil | nil | 30.0p | |
| assets | ||||||
| Net assets (£’000) | 690,230 | (0.5%) | 693,356 | 789,466 | 742,230 | 620,723 |
| Net asset value (“NAV”) per 5p Ordinary Share:† | ||||||
| Basic and Diluted | 5,127p | 0.6% | 5,097p | 5,779p | 5,292p | 4,384p |
| Basic and Diluted adjusted‡ | 5,391p | 3.0% | 5,236p | 5,856p | 5,355p | 4,505p |
| Mid-market price of the 5p Ordinary Shares | 3,690p | (5.4%) | 3,900p | 4,330p | 3,850p | 3,400p |
| discount to diluted net asset value | 28.0% | 23.5% | 25.1% | 27.2% | 22.4% | |
| discount to diluted adjusted net asset value | 31.6% | 25.5% | 26.1% | 28.1% | 24.5% | |
| indices and exchange rates at 31 January | ||||||
| Standard & Poor’s 500 Composite Index | 4,845.7 | 18.9% | 4,076.6 | 4,515.6 | 3,714.2 | 3,225.5 |
| Russell 2000 Index | 1,947.3 | 0.8% | 1,931.9 | 2,028.5 | 2,073.6 | 1,614.1 |
| US Dollar/Sterling exchange rate | 1.3 | 3.5% | 1.23065 | 1.34180 | 1.37295 | 1.31830 |
| Standard & Poor’s 500 Composite Index – Sterling adjusted | 3,810.1 | 15.2% | 3,307.3 | 3,360.5 | 2,709.5 | 2,442.5 |
| Russell 2000 – Sterling adjusted | 1,531.2 | (2.3%) | 1,567.4 | 1,509.6 | 1,512.7 | 1,222.2 |
* Please refer to note 7 for details on how the basic return per 5p Ordinary Share is calculated.
** Declared 19 February 2024.
† Please refer to note 7 for details on how the net asset value per 5p Ordinary Share is calculated.
‡ Adjusted to reflect Oryx International Growth Fund Limited (“Oryx”) under the equity method of accounting, which is how the Company previously accounted for its share of Oryx, prior to the adoption of IFRS 10. This is useful to the shareholder as it shows the NAV based on valuing Oryx at NAV. See note 7.
strategic report – corporate summary
Introduction
North Atlantic Smaller Companies Investment Trust plc (“NASCIT”) is an investment trust, the shares of which are listed on the London Stock Exchange.
Objective And Investment Strategy
The objective of the Company is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean. The Company invests in both listed and unquoted companies.
Company’s Business
The Company is an investment company within the meaning of Section 833 of the Companies Act 2006 and its business is that of an investment trust.
Risk
Investment in small companies is generally perceived to carry a greater risk than investment in large companies. This is reasonable when comparing individual companies, but is much less so when comparing the volatility of returns from a diversified portfolio of companies. The Board believe that the Company’s portfolio is diversified although considerably less liquid than a portfolio of large-cap listed equities.
The Company has the ability to utilise gearing in the form of term loan facilities, although no facility currently exists. Gearing has the effect of accentuating market falls and gains.
The Company outsources all of its main operational activities to recognised third party providers.
AIFMD
The Company is authorised and regulated by the Financial Conduct Authority. The Company has been a full scope internally managed AIF with effect from 1 October 2021 under the Alternative Investment Fund Managers Regulations 2013. For further information see page 21.
Company Secretary
SGH Company Secretaries Limited were appointed Company Secretary as at 4 September 2023.