Invesco Perpetual UK Smaller Companies Investment Trust PLC on Wednesday said net asset value declined during its latest half year, but increased its interim dividend.

The UK-based investment trust, which backs small to medium-sized UK-quoted companies, said its NAV at July 31 was 471.16 pence, down 8.9% from 517.09p at January 31.

Invesco Perpetual UK shares were up 0.5% at 393.00p in London on Wednesday.

The trust delivered a negative 6.9% NAV total return for the six months ended July 31. Its benchmark, the Numis Smaller Companies + AIM (excluding Investment Companies) index delivered negative 4.2%.

However, revenue per share increased during the first half to 8.17p from 6.74p the previous year, which Invesco Perpetual UK said reflected its portfolio’s robust dividend flow.

The trust also declared a 3.85p per share first interim dividend, up from 3.75p.

‘In common with many companies investing in the smaller companies sector, it has been a difficult six months,’ commented Chair Bridget Guerin, who assumed the role when Jane Lewis retired in June. ‘The increasing interest rate environment has led to the highest rates the UK has experienced for 15 years which has proven challenging for markets in general and smaller companies in particular.’

However, Guerin expressed hopes that inflation and interest rates have peaked, saying that ‘while it is too early to declare new shoots of growth, there are some positive indicators such as the easing of wage inflation.

‘The worst may now be behind us and there is certainly a widespread belief that UK equities are good value,’ she added.

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