Trading volumes hold key, says AIM VCT
Article Date: May 27 2008Tim How, chairman of Framlington AIM VCT, says that the junior market is unlikely to overcome its current problems until trading volumes return from their ‘current very low level’. How’s comments come as the VCT announces a fall of 33 per cent in its net asset value, including cumulative dividends, in the year to March.
This was roughly double the decline in the FTSE AIM All Share index over the same period, which fell 16 per cent.
The Framlington AIM VCT 2 fared slightly better than its twin, with a drop of 22 per cent in net asset value including dividends.
Commenting on the opportunities available to the VCTs going forward, How says: ‘At this time, it is likely that a number of secondary issues will be brought to [AIM] as recourse to debt will remain tight.
‘Not only good but also poorer companies will try to raise equity finances and therefore it remains paramount that… tight investment criteria are adhered to.’
New investments made by Framlington AIM VCT over the six months to March include Melorio, a consolidator of vocational training businesses, and Plastics Capital, an investor in niche plastics manufacturers. Framlington AIM VCT 2 invested in Corac, a developer of compression technology for the oil industry.
