Castelnau return underperforms benchmark, shares fall

Shares in Castelnau Group Ltd on Thursday fell after it reported weak interim results.

Shares in the Guernsey-based investment company managed by Phoenix Asset Management Partners Ltd were down 4.3% at 89.00 pence per share on Thursday afternoon.

Pretax profit in the first half of 2026 fell by 70% to £3.1 million, from £10.4 million a year earlier.

Net gains on financial assets at fair value fell 55% to £6.3 million, from £14.1 million.

The company declared no interim dividend, unchanged from last year.

The company said net asset value per share was 113.0 pence per share at June 30, increased from 112.1 pence at December 31. The NAV total return increased 0.8%, underperforming the benchmark FTSE All-Share Total Return Index, which returned 7.2%.

Castelnau said its main contributor was Valderrama Ltd, owner of funeral services provider Dignity PLC, with a smaller contribution from toy brand Hornby PLC. Valderrama represents 85% of Castelnau's portfolio and its fair value increased 1.7% in the period.

Castelnau said its share price "continues to trade at a discount to NAV, reflecting the situation prevalent in the wider investment trust sector."

Looking ahead, the company said it was "excited" about its investment in Iona Star LP, which it hoped would produce strong investment returns and give the company "unique insight and access" in the artificial intelligence sector.

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