20th Jan 2014 12:06
LONDON (Alliance News) - The Bankers Investment Trust PLC Monday said its net asset value rose by 23.8% over the course of the financial year, buoyed by a good year for equities.
The trust's net asset value per share rose to 587.4 pence on October 31, from 474.5p a year earlier. The increase saw a narrowing in the discount of share price to net asset value, which dropped to 1.3% from 8.7%.
Meanwhile, total return per share rose to 126.63 pence from 40.42p, meaning the trust increased its dividend to 14.13 pence a share, a 6% increase.
However, the trust said it doesn't expects its current level of revenue reserve to grow significantly.
"We feel confident in being able to forecast a dividend per share of not less than 14.7p per share, an increase of 4%," the trust said in a statement.
The trust reported a GBP141.4 million pretax profit, up from GBP45.6 million last year, driven by gains on investments held at fair value through profit or loss, which more than quadrupled to GBP126.8 million.
Richard Killingbeck said investment sentiment had turned positive, with large institutions increasing their exposure to equities for the first time in over five years.
"It is against this broadly positive backdrop that your board approaches the new year with confidence for both equity markets and corporate dividend growth. The investment approach of the company has evolved over many years and I anticipate that it will continue to deliver the consistency of returns experienced in the past regardless of the broader market challenges which will lie ahead," Killingbeck said in a statement.
The trust's shares were Monday quoted at 591.50 pence, down 0.5 pence, or 0.1%.
By Samuel Agini; [email protected]; @samuelagini
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