| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 58.39 | 2 |
| Intrinsic value (DCF) | 26.16 | -54 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Amati AIM VCT plc (LSE: AMAT) is a UK-based venture capital trust (VCT) specializing in growth capital investments, primarily targeting companies listed on the Alternative Investment Market (AIM). The fund focuses on a diversified portfolio across sectors including technology, industrials, financials, healthcare, consumer goods and services, oil and gas, basic materials, telecommunications, and utilities. Amati AIM VCT provides investors with exposure to high-potential small and mid-cap UK businesses, combining tax-efficient returns with the growth potential of AIM-listed equities. The trust also invests in unquoted companies and listed securities, offering a balanced approach to venture capital. With a market cap of approximately £82.2 million, Amati AIM VCT is positioned as a strategic vehicle for investors seeking long-term capital appreciation and dividend income from the UK's dynamic SME sector. Its focus on AIM-listed firms provides liquidity advantages compared to traditional private equity, while its sector diversification mitigates concentration risk.
Amati AIM VCT plc presents a niche investment opportunity for those seeking tax-efficient exposure to UK small and mid-cap growth companies. The trust's focus on AIM-listed equities offers liquidity benefits over traditional venture capital, while its diversified sector approach reduces single-industry risk. However, recent financials show challenges, with negative revenue (£-2.24 million) and net income (£-2.94 million) for the period, alongside negative operating cash flow (£-742k). The fund maintains a strong cash position (£22.1 million) with no debt, providing flexibility for future investments. The dividend yield (2.74p per share) may appeal to income-focused investors, but the negative earnings and cash flow raise sustainability concerns. The low beta (0.55) suggests lower volatility than the broader market, which could appeal to risk-averse investors in the venture capital space. Overall, the trust suits investors comfortable with higher-risk small-cap exposure who value the UK's VCT tax benefits.
Amati AIM VCT competes in the specialized UK venture capital trust market, differentiating itself through its exclusive focus on AIM-listed companies—a hybrid between public and private equity investing. This strategy provides liquidity advantages over traditional VCTs investing solely in unquoted companies while still offering the tax benefits of the VCT structure. The trust's sector-agnostic approach allows it to capitalize on growth opportunities across the UK economy, though this broad mandate may dilute expertise compared to sector-specialized peers. Amati's small size (£82m market cap) limits its ability to lead large funding rounds but enables nimble investments in undervalued small caps. The negative recent financial performance raises questions about portfolio company selection and value creation capabilities compared to peers. Its zero-debt balance sheet is a strength in volatile markets, but the cash burn rate necessitates careful monitoring. The trust's competitive edge lies in its AIM focus—a market with fewer pure-play VCT competitors—but it must demonstrate an ability to identify winners in this high-risk segment to justify its strategy long-term.