An Aquis-listed small-cap investor has warned 2024 was a “difficult year” in the public markets as it posted widening losses.
Gledhow Investments, which builds up positions in fast-growing AIM, LSE and Aquis Exchange traded companies, complained of poor liquidity on the Aquis exchange as it reported a fall in the value of its portfolio.
“UK Stock Markets have experienced substantial downturns following exuberance and funding availability during and shortly after the Covid Pandemic,” the firm said.
“Recovery has been slow and it is uncertain whether the company’s portfolio of public companies will see upturns.
“The directors continue to caution that there is a historically perceived lack of liquidity generally in Aquis Growth Market traded companies.”
But Gledhow added it “is taking some advantage of market volatility” and it was still the case that “opportunities in the UK public markets are presenting themselves.”
“Whilst the company’s trading activity has reduced with low levels of fundraising in the small microcap UK public markets, the directors continue to follow an investment strategy, through investing in small undervalued or fast growing companies, with the investment objective of achieving long term capital growth.”
Gledhow posted a loss of £423k in the year to end September, a jump of nearly 50% compared to the previous year. Total turnover stood at £282k, a fraction of the near-£1m turnover achieved the previous year.
The company posted a 29% fall in the value of its assets to just over £1m.
Gledhow’s shares have declined some 80% since their peak in 2021. The company’s stock was unchanged on Monday.
“In light of the decline in the company’s investments, the directors will continue to monitor the net asset performance relative to other markets, including AIM,” Gledhow said, adding that it had managed to sell down some of its Aquis Growth Market portfolio since year end.
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