Woodford Patient Capital Trust declines in maiden results

The FTSE 250 company nonetheless described its investment opportunities as “better, deeper and richer” than first thought, with its portfolio now fully invested since launch in April.

It put the decline down to poor share price performance across the markets, saying the price performance of its investments had not been prompted by operational progress.

Woodford’s board pointed out that the FTSE All Share Index had declined 7.5% in total return terms during the period, and was very pleased by the fundamental performance of the vast majority of its holdings.

"Since dealings in the company's shares commenced on the London Stock Exchange on 21 April 2015, Neil and his investment team have been busy building the portfolio, a process that was completed shortly before year end,” said board chair Susan Searle.

“As the Woodford team has constructed the portfolio, the opportunity set has emerged as deeper and richer than originally anticipated, further strengthening already high levels of confidence in the investment rationale,” she added.

Head of investment Neil Woodford said the firm had invested in a number of “incredible businesses” with “massively disruptive technology” and high growth potential.

“Some of these businesses may take a long time to fulfil their potential but the stock market is not well-endowed with patience, particularly in volatile conditions,” he explained.

"Periodically, this manifests itself in share price weakness, especially in businesses with no earnings or dividends and relatively limited market liquidity, but therein lies the opportunity for patient capital to exploit.”

Woodford described the portfolio as being in excellent shape, and said the board was viewing the future with great confidence.

The company proposed a dividend of 0.16p per share.