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Capital Gearing Trust net asset value falls annually but payout up

24th May 2023 14:50

(Alliance News) - Capital Gearing Trust PLC on Wednesday reported a lower net asset value than a year ago as it was impacted by inflation and high energy costs.

The Belfast-based investment trust said that financial 2023, which ended on March 31, was only the second year in the last 41 years when its NAV total return was negative.

Its NAV per share as at March 31 fell 4.5% to 4,797.3 pence from 5,025.1p a year prior. NAV total return was negative 3.6%.

The company does not have a formal benchmark but compares itself to the MSCI UK Index, which returned positive 5.6% over the year.

Capital Gearing declared a final dividend of 60p per share, up 30% from 46p a year prior. Both were also the total dividend.

Looking ahead, Chair Jean Matterson said: "There is a sense that the interest rate cycle is returning to normal, after more than a decade of virtually zero rates. The recent rise in rates has failed to quell inflation, which has led to large wage rise demands as people struggle to offset the increase in the cost of living."

The company added that markets "remain fragile and unpredictable," stating that it hopes to send a more optimistic message in the future.

Capital Gearing Trust shares were 0.1% higher at 4,690.03 pence each in London on Wednesday afternoon.

By Tom Budszus, Alliance News reporter

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