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IN BRIEF: Mercantile Investment underperforms but keeps dividend flat

13th Oct 2022 12:24

Mercantile Investment Trust PLC - London-based investment company focused on medium and smaller sized companies in the UK - Underperforms benchmark as net asset value drops. NAV total return in half-year to July 31 at negative 11.5% versus negative 7.8% of benchmark, the "target market of UK medium & smaller companies". A year ago, total return was positive 25%, outperforming benchmark index which reported positive 18%.

Net asset value per share drops 24% to 236.9 pence at July 31 from 310.1p a year prior.

Mercantile keeps total dividend for year-to-date flat at 2.70p per share, same as a year ago and two years ago. Intends to pay third quarterly dividend of 1.35p in early February 2023. Looking ahead, firm notes concern about near-term impact of global inflation and increased costs in the UK and around the world. Adds that UK government policy caused currency volatility. States that the current low level of sterling is likely to increase appeal of FTSE 250 to attract corporate activity.

"We believe the valuations of many interesting companies are now looking especially enticing. Furthermore, the UK market remains attractively priced relative to many of its counterparts in other industrialised economies," says Chair Angus Lennox.

Current stock price: 167.40p, up 2.1% on Thursday afternoon in London

12-month change: down 35%

By Tom Budszus; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.

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