Terra Capital NAV improves as profit soars

Value opportunities investor Terra Capital posted its interim results for the six months to 30 June on Monday, with a net asset value of $0.939, against $0.925 at the end of 2015.

The AIM-traded company said that, when taking in to account the dividend of 3.24 cents per share paid in February, the NAV represented a total return for the six month period of 5.02%.

“This return of 5.02% compares favourably to the MSCI Frontier Markets Index, which declined by 0.13% since 31 December 2015, and continues to demonstrate the benefits of the investment manager's value based approach,” said Terra Capital chairman Dirk Van den Broeck.

The company's portfolio holdings at period end comprised 65 positions with exposure to 27 currencies, with the board reporting it as “performing well” on both an absolute basis and a relative basis.

“In accordance with the dividend policy we announced in late 2013 we have paid a dividend of 3.24 cents per share in February 2016 based on our income in 2015,” Van den Broeck said.

“This represented a dividend yield at the time of declaration of 3.5% on net asset value and 3.9% on the closing middle market price.”

The company’s profit before tax improved markedly during the period, to $3.19m from $1.75m in the six months to 30 June 2015.