AURORA INVESTMENT TRUST PLC Aurora Investment Trust plc Half Yearly Report
For the six months ended 30 June 2023
CONTENTS | |
Page | |
Financial and Performance Highlights | 1 |
Chair's Statement | 2 |
Objective and Investment Policy | 4 |
Investment Manager's Review | 5 |
Top Holdings | 13 |
Sector Breakdown | 14 |
Interim Management Report | 15 |
Statement of Directors' Responsibilities | 17 |
Condensed Statement of Comprehensive Income | 18 |
Condensed Statement of Financial Position | 19 |
Condensed Statement of Changes in Equity | 20 |
Cash Flow Statement | 22 |
Notes to the Financial Statements | 23 |
Alternative Performance Measures | 28 |
Corporate Information | 30 |
Half Yearly Report | 1 | ||
FINANCIAL AND PERFORMANCE HIGHLIGHTS | |||
Performance | |||
At | At | ||
30 June 2023 | 31 December 2022 | ||
(unaudited) | (audited) | ||
Net asset Value ("NAV") per Ordinary | |||
Share1 | 225.6p | 203.5p | |
Ordinary Share price | 200.0p | 194.5p | |
Share price discount to NAV per share1 | (11.3)% | (4.4)% | |
Annualised ongoing charges1 | 0.44% | 0.45% | |
Gearing (net) | - | - | |
The total returns in sterling for the period/year were as follows:
Six months to | Year to | ||
30 June 2023 | 31 December 2022 | ||
(unaudited) | (audited) | ||
% | % | ||
NAV total return per Ordinary Share1,2 | 12.4 | (19.1) | |
Ordinary Share price total return1,2 | 4.3 | (16.3) | |
FTSE All-Share Index total return | |||
("Benchmark") | 2.5 | 0.3 | |
1
2
Definitions of these Alternative Performance Measures ("APMs") together with how these have been calculated can be found on pages 28 and 29.
Including dividend reinvested.
2 | Aurora Investment Trust plc |
CHAIR'S STATEMENT
This report covers your Company's activities over the six months to 30 June 2023 and its financial position at that date.
Performance
I am pleased to report performance over the period was very encouraging. Over the six months the Company's net asset value ("NAV") per share increased from 203.5p at 31 December 2022 to 225.6p at 30 June 2023, giving a total return for the period of +12.4% (2022: -17.3%). The price at which the Company's shares traded rose from 194.5p per share at 31 December 2022 to 200.0p at 30 June 2023, giving a share price total return of +4.3% (2022: -17.7%). These compare with the total return over the
six months for the FTSE All-Share Index, the Company's benchmark, of +2.5% (2022: -4.6%). At the end of June the share price stood at an 11.3% discount to the NAV per share.
Top contributors were easyJet, Ryanair, Netflix, Wayfair, Castelnau, AO World and Barratt Developments. Notable detractors included Hotel Chocolat and Hornby. The Investment Manager's Review, starting on page 5, provides further details on activity and outlook.
Investment Manager Presentation Event
Shareholders are invited to Aurora's inaugural Investment Manager Presentation Event, being held at 4 p.m. on 10 October 2023 at the Queen Elizabeth II Centre, Broad Sanctuary, Westminster, London SW1P 3EE. Both existing and prospective Aurora shareholders are welcome and the event will include multiple speakers from the Investment Manager. We plan to record the event and publish it on the Company's website. If you would like to attend the event, please contact phoenix@pamp.co.uk to register.
Share Price Discount
The discount to NAV per share widened over the period from 4.4% at the end of 2022 to 11.3% as at 30 June. This is particularly frustrating in light of strong performance over the period. Investment trusts as a whole have seen discounts widen significantly, however the Board is fully aware this provides little solace for shareholders.
Closing the discount is one of the Board's key objectives for 2023, and marketing is
a key part of the strategy. To raise the Company's profile, marketing materials including the website will be refreshed, and more regular opportunities for existing and prospective shareholders to meet with the Manager have been introduced, including the presentation referenced above. Phoenix, Liberum, and Frostrow Capital continue to promote the Company proactively.
Half Yearly Report | 3 |
Outlook
After a difficult 2022, performance so far in 2023 has been promising. We believe there is significant untapped value in UK shares and, with the Manager's strategy to invest in great businesses at attractive prices, the Company's shares offer an excellent opportunity to access this.
Lucy Walker
Chair
20 September 2023
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Disclaimer
Aurora Investment Trust plc published this content on 21 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 September 2023 07:56:02 UTC.
