1st Jun 2018 08:27
LONDON (Alliance News) - Capital Gearing Trust PLC on Friday reported moderate growth in its net asset value per share in its recently ended financial year, but it trailed it benchmark and warned of a difficult year ahead.
Net asset value per share rose 0.1% to 3,809.80 pence in the year to April 5 from 3,805.00p reported the prior year.
Capital Gearing's share price stood at 3,910.00p at the end of the period, representing a 2.6% premium to NAV. The stock was trading 0.3% lower on the day Friday at 3,990.00p per share.
The company does not have a formal benchmark but uses the UK Retail Price Index as the minimum target for returns to be achieved over the medium to longer-term. The UK Retail Price Index was 3.3% higher year-on-year.
Capital Gearing said it suffered from inflation, as the dollar fell back before recovering in the latter weeks of the period. The year before, the company benefited from the weakness in the sterling to dollar exchange rate.
Despite that, the trust lifted dividend by 5.0% to 21.00p from 20.00p paid a year earlier.
Looking forward, Capital Gearing said it expects a difficult year ahead for securing positive
investment returns due to the Brexit doubts.
"For the twelve months ahead it may be that merely preserving the gains of previous years will be viewed as success," said Chairman Graham Meek.
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Capital Gearing Trust