29th Jul 2019 17:51
(Alliance News) - Aberforth Split Level Income Trust PLC on Monday reported a fall in its net asset value per share but declared a special dividend.
The company posted a net asset value per share of 86.7p at June 30, down from 104.7p a year earlier. The company's total return from total assets was negative 9.7%, while the NAV total return of ordinary shares was minus 13%.
The Numis Smaller Companies Index excluding investment companies generated a total return of minus 5.4% over the same period.
"Dividend growth from small UK quoted companies has been strong since the financial crisis, but there is evidence that the rate of growth is reverting to more historical norms," Aberforth Split Level commented.
"This slowdown is unsurprising given the length of the current cycle, Brexit uncertainty and the more challenging economic backdrop. It is too early to conclude whether this heralds a more meaningful trend or is a temporary blip," the firm added.
Aberforth Split Level declared a second interim dividend of 2.71p which, together with the first interim payout of of 1.45p, brings the total dividend to 4.16p, up 4% year-on-year. In addition, the company proposed a special payout of 0.19p.
"While acknowledging the challenge that currently accompanies the company's investment strategy, the board is also conscious that some of the most attractive opportunities in equity markets require a contrarian approach and so looks to the future with optimism," the company said.
Meanwhile, Chair Jonathan Cartwright said he has decided not to stand for re-election at the forthcoming annual general meeting. It is intended that Director Angus Lennox will become Chair at the conclusion of the meeting.
Shares in Aberforth Split Level closed down 3.1% at 77.00p in London on Monday.
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