2nd Apr 2015 09:29
LONDON (Alliance News) - City Merchants High Yield Trust Ltd Thursday said its net asset value return slightly underperformed compared with its benchmark in 2014 and its pretax profit halved, but it maintained its dividend for 2014 and said it will aim to pay the same dividend again in 2015.
The trust said the total net asset value return in the year ended December 31 rose by 5% compared with the Investment Management Association Sterling Strategic Bond sector return of 6.3%.
Net assets at the end of the period totalled GBP148.2 million, up from GBP134.0 million at the end of 2013. However, its net asset value per share fell after it issued more shares to 183.40 pence from 184.12 pence.
City Merchants' share price rose by 2.9% in 2014 to 189.25 pence at the end of December, from 184.0 pence per share a year earlier. On Thursday morning, City Merchant shares were untraded, last trading at 162.44 pence per share.
The trust's pretax profit for the year more than halved to GBP7.5 million from GBP16.7 million.
Still, the trust maintained its dividend of 10.0 pence per share, flat from 2013.
"We were able to meet our dividend target of 10.0 pence in respect of the financial year, matching last year's total, and hope to repeat this in the coming year," said Chairman Clive Nicholson."The board believes the portfolio remains well positioned to continue to provide an attractive level of income for shareholders. There is potential for further capital appreciation but also for some disappointment."
By Joshua Warner; [email protected]; @JoshAlliance
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