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Augmentum Fintech PLC on Tuesday said it is confident that its portfolio will continue growing in value, but is still considering how best to resolve the ‘substantial discount’ between its shares and net asset value. The London-based investor, which focuses on European private fintech companies, reported an NAV after performance fees of 159.5 pence per share as of September 30, down from 161.5p on March 31. Shares in Augmentum Fintech were 3.3% higher at 84.50p on Tuesday afternoon in London. In the six months ended September 30, Augmentum said its portfolio of private growth companies delivered solid trading performance with 24% revenue growth and an 8.5% earnings before interest, tax, depreciation and amortisation margin, up from 0.7% the previous year ‘thanks to strong operational gearing coming through’. However, the firm noted that its share price of 87.8p as of September 30 represented a 45% discount to NAV per share. Due to this ‘unacceptable’ gap, Chair William Reeve said, ‘our immediate environment as a listed investment trust remains stuck in the doldrums’. ‘As a result,’ Reeves continued, ‘our market capitalisation was £147 million, a multiple of just 2.9x the £50 million ownership-weighted revenues of our portfolio which fails to reflect the opportunity, revenue growth and increasing profitability of the portfolio. ‘Whilst the board has been actively engaged with the poor shareholder experience, there is frustratingly little to show for it.’ Nonetheless, he said the fintech market ‘has had a broadly positive six months, with the IPO market showing signs of warming up...We believe this combination of growing, profitable fintech leaders and a significant discount gives patient shareholders a compelling opportunity.’ Looking ahead, Reeves commented: ‘The fundamentals of our portfolio of businesses are good with strong top line growth and improving profitability. We are confident this portfolio will continue to grow in value as they continue to execute on their strategic plans. ‘Despite this our shares have continued to trade at a substantial discount to NAV. Your board does not rely on resolving this issue through a ’business as usual’ approach, hoping that the pool of traditional public company investors will close the gap. We plan to update shareholders in the new year on how we can best proceed.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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