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Hargreave Hale AIM VCT PLC on Friday flagged a decline in its portfolio value, after an ‘eventful’ first quarter. The venture capital trust investing in stocks listed on London’s AIM said its net asset value declined 3.4% to 35.21 pence at the end of December from 36.46p at September 30. Hargreave Hale pointed to weak UK growth and uncertainty around the government’s autumn budget, as well as ‘persistent’ inflation. The trust also noted the role of the US in stirring political uncertainty, ‘as the administration applied pressure to anyone or anything opposed to its agenda.’ ‘Whilst this might be a source of considerable concern for many observers and investors, the administration‘s unorthodox approach does not appear to be weighing on the US economy, which reported strong third quarter growth of 4.3%,’ Hargreave Hale noted. However, on the other side of the Atlantic, the company said: ‘UK economic growth remains weak, with the Office for Budget Responsibility projecting 1.5% growth for calendar year 2025 in its latest outlook, falling to 1.4% in 2026. ‘The unemployment rate continues to grind higher, now at 5.1%, as companies continue to adjust their cost structures in response to increases in both the national minimum wage, national insurance contributions and, in many cases, significantly higher business rates. With the exception of food, consumer-facing companies continue to struggle.’ Hargreave Hale has seen the mood lighten somewhat since November’s UK budget release, with a ‘rebound’ in sentiment towards the end of the December quarter. ‘Whilst AIM did not quite manage the round trip, events elsewhere have led investors to look at the UK markets through a different and more positive lens. With UK equities significantly undervalued, both relative to historical norms and other international markets, the renewed interest was enough to drive gains in other UK indices. The improved tone has continued into the New Year,’ Hargreave Hale said. Its top detractors for the quarter ended in December were Cohort PLC, whose share price took a knock from ‘director selling earlier in the year and, more recently, investor caution around nearterm margins and cash flows,’ according to Hargreave Hale. Other fallers were Diaceutics PLC and Property Franchise Group PLC. On a positive note, Hargreave Hale saw improvement from Hardide PLC, which swung to profit for the first time in years, as well as Skillcast Group PLC and Tortilla Mexican Grill PLC, with an executive reshuffle of the latter working in its favour. Hargreave Hale repurchased 2.6 million shares at an average of 34.12 pence each during the quarter. It made two equity investments totalling £2.8 million, one follow-on investment into Abingdon Health PLC and one new investment into KRM22 PLC. The trust exited its stake in Polarean Imaging PLC. Since December 31, Hargreave Hale has either completed or committed to three new qualifying investments worth £3.5 million. Commitments for the year-to-date as at January 31 totalled £6.3 million, the trust said. Hargreave Hale shares were flat at 30.51p around noon on Friday in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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