Augmentum Fintech noticed its web asset worth (NAV) per share rise by 2.4 per cent year-on-year, due to the robust efficiency of its investments in a difficult market.
The London-listed fintech funding fund, which has peer-to-peer lender-turned-digital-bank Zopa in its portfolio, reported NAV per share after efficiency payment of 158.9p for the 12 months ended 31 March 2023.
“Our 10 highest worth holdings have seen income development at a formidable common of 117 per cent year-on-year and raised over $300m (£235.7m) in capital throughout a difficult macroeconomic and fundraising atmosphere,” stated chief government Tim Levene.
“Regardless of an elevated focus from enterprise traders on firms displaying a transparent path to profitability and decreasing money burn, the expansion in our portfolio by means of the cycle displays the standard of a lot of our firms and the unabated advance of digital transformation within the monetary companies sector.”
Learn extra: Zopa backer says financial institution must strike stability between revenue and development
Nevertheless, Augmentum’s total NAV ticked right down to £294.1m from £295.2m the earlier 12 months, whereas the worth of the funding portfolio fell to £254.3m from £268.8m.
The fund reported a complete pre-tax return of £4.893m for the 12 months, considerably down from £59.315m the earlier 12 months. This was primarily resulting from a decline in capital, which displays Augmentum’s technique of utilizing market comparables to worth investments, at a time when most of its friends are reporting web downward valuations.
“Shareholders will probably be absolutely conscious of the numerous market volatility all year long below assessment,” stated chairman Neil England. “The warfare in Europe, inflation, rising rates of interest after a protracted interval of near free cash, extremely priced US expertise shares falling in worth and the contagion from which have all been elements. Quick rising firms that want money to gasoline that development have typically been out of favour.”
Learn extra: Augmentum hails “vital development potential” of fintech portfolio
Augmentum’s share worth rose by 1.43 per cent to 99p on the outcomes announcement, as of 2pm GMT.
Nevertheless, the fund’s share worth has declined by greater than a 3rd prior to now two years. England stated that it was “disappointing” that Augmentum’s NAV development over the previous 5 years isn’t mirrored in its share worth.
Augmentum has accomplished a number of profitable exits during the last 18 months, making £42.8m from the sale of interactive investor to abrdn in Might 2022 and £22.8m from the sale of its stake in pensions fintech Cushon to NatWest Group earlier this 12 months.
Learn extra: Fintech provides alternatives regardless of macro headwinds, says Augmentum
Nevertheless, it invested simply £19.9m final 12 months, down from £60.8m the earlier 12 months, which it attributed to “a disciplined strategy to capital allocation” amid difficult macroeconomic situations.
Levene stated the corporate is seeing “a cloth improve within the variety of compelling funding alternatives at extra pragmatic valuations”, which it expects to proceed into 2024.
Augmentum has 10.8 per cent of its web property in Zopa. Different key investments in its portfolio embody expertise rental web site Grover (15.5 per cent of Augmentum’s web property) and enterprise banking platform Tide (12.9 per cent).