Low Carbon Accelerator’s unaudited net asset value was GBP38.68m or 44.9 pence per ordinary share at 31 August 2009, a 1.8 per cent increase on the pro forma 31 May NAV of 44.1p per ordinary share.
Dr Steve Mahon, chief investment officer for Low Carbon Investors, the investment manager for LCA, says: “We are pleased to announce that this is the first quarter where the NAV of LCA has shown an increase from the previous quarter. It is twelve months since LCA announced its strategy of focusing resources on supporting existing portfolio companies. This early action, taken in response to the global recession, is now bearing fruit with real signs of growth across the portfolio as reported in this announcement.
“With many indicators now suggesting that the world is coming out of recession, and with the LCA portfolio now close to the bottom of its J-curve, the investment manager believes its strategy is sound and remains optimistic about the growth prospects and tangible value creation expected in the portfolio over the next 12 months.
“One of the key risks associated with the low carbon economy has been the uncertainty relating to government regulation, which plays a key role in determining the speed of adoption for new technology. However, we are pleased that the degree of Government commitment has been clear, long term in nature and material in its economic impact. This is expected to continue to provide a major stimulus for the LCA portfolio.”
Low Carbon Accelerator is a closed ended investment company created to invest in a portfolio of fast-growing low carbon businesses. The company listed on the Aim Market of the London Stock Exchange on 11 October 2006, raising GBP44.5m.
