17th Jan 2019 14:35
LONDON (Alliance News) - Independent Investment Trust PLC on Thursday upped its annual payout despite a 12% decrease in its net asset value in its most recently ended financial year.
The company said net asset value per share declined sharply in the year to the end of November to 537.4 pence from 610.2p reported the year before.
Net asset value total return in the year was negative 10.8%. This compared to the FTSE All-Share Index and the FTSE World Index total returns of negative 1.5% and positive 6.0%, respectively.
The downturn in our portfolio towards the company's financial year-end reflected, to a greater degree, the worldwide downturn in equity markets, Independent Investment Trust explained.
The stock was trading 3.2% higher on Thursday at 530.20 pence a share.
"The disappointing results have weighed upon the rating of our own shares, which moved from a premium of 7.2% at the end of November 2017 to a discount of 1.2% November 30, 2018, producing a share price total return of negative 17.9%," said Chair Douglas McDougall.
More positively, Independent Investment Trust's earnings per share for the year were 10.53 pence, up from 9.2p reported in financial 2017.
The trust declared a final dividend of 5p, up from 4p paid the year prior, making a total dividend for the year of 7p, up from 6p the year earlier.
In addition, the company proposed a special dividend of 3p per share, up from 2p the year before.
"Since November 30, we have been working to reduce the level of concentration by making sales of some of our holdings and adding the proceeds to our cash balances, which are likely to be higher than they have been in recent years until we can develop more confidence in the outlook," added McDougall.
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IIT.L