Edinburgh Worldwide Investment optimistic despite net asset value fall
Edinburgh Worldwide Investment Trust PLC on Wednesday announced a dip in net asset value amid ‘significant volatility’ but noted a strong funded order backlog for one of its largest detractors.
The Edinburgh-based investor aiming for long-term capital appreciation said net asset value per share fell 2.9% to 165.44 pence as at April 30 from £170.40p at October 31, 2024.
NAV per share total return was minus 2.9% in the six months to April 30, outperforming the S&P Global Small Cap index in sterling terms, which had a return of minus 7.2%.
Among the most significant detractors was Arlington, Virginia-based defence contractor AeroVironment Inc, whose shares were pressured due to transient operational challenges and guidance uncertainty, as the US adjusted its policy towards Ukraine. ‘This shouldn’t overshadow, however, its strong funded order backlog, strategic contracts with the US military, and the continuing expansion of drones’ military applications,’ Edinburgh Worldwide said.
Among the largest positive contributors was Scottsdale, Arizona-based developer of technology and weapons products Axon Enterprise Inc, which marked its 12th consecutive quarter of over 25% sales growth, amid rising customer adoption of artificial intelligence products.
‘While performance is ahead of the benchmark, the market has observed significant volatility. The board continues to be excited by this unique mandate and the potential within the portfolio which is covered in detail in the interim report,’ Chair Jonathan Simpson-Dent said.
The company recommended no interim dividend, unchanged from a year prior.
Edinburgh Worldwide shares rose 1.0% to 167.37 pence each on Wednesday morning in London.
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