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Augmentum Fintech PLC on Tuesday highlighted that UK and global inflation numbers were improving, indicating a more positive medium-term outlook despite high interest rates. The London-based investor focused on European private fintech companies said net asset value per share improved 6.0% to 178.6 pence as at March 31 from 168.5p a year prior. NAV per share after performance fee total return rose to 5.4% from 2.4% year-on-year. The company declared no dividend as it is focused on providing capital growth. Looking ahead, Chair Neil England said: ‘Interest rates remain stubbornly high for now, but UK and global inflation numbers are improving which suggests a more positive medium-term outlook for growth companies. As I write, early-stage growth portfolios remain out of favour, but our portfolio manager has proved its model, well-illustrated by the returns produced by our six realisations to date. Additionally, our largest investments are performing very well. ‘The underlying need to digitalise and transform financial services remains. The opportunity is undiminished as the traditional operators continue to dominate, despite inroads made by some stellar fintech businesses with less costly, and in many cases more secure, business models. Penetration is still only around 5% across the industry although adoption of consumer focused fintech by younger demographics is markedly higher.’ The company emphasised that it invested £15.8 million across one new company in financial 2024, Artificial Labs, a London-based insurtech. Further, Augmentum said it invested £2.6 million into LoopFX, a London-based venue for large spot foreign exchange trades with a ‘unique’ matching solution for market participants. Augmentum Chief Executive Officer Tim Levene said: ‘We are increasingly focusing on the opportunity in the capital markets space where we see a trend in incumbents opting to collaborate and partner with innovative early-stage companies. We believe LoopFX offers a text-book example of a fintech operating in the capital markets in partnership with blue chip financial institutions. LoopFX brings efficiencies in trading and price discovery to the FX market, which in turn will help market participants comply with best execution requirements.’ Augmentum shares rose 4.5% to 114.97 pence each on Tuesday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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