24th Apr 2020 11:54
(Alliance News) - Merchants Trust PLC on Friday reported a 12% growth in net asset value in its most recently ended financial year.
The investment company reported a 19% increase in the NAV total return over the year to the end of January against an 11% return for its benchmark, the FTSE All Share index.
NAV per share stood at 551.5 pence as at January 31 compared to 491.1p a year ago.
The trust said demand for its shares remained strong throughout the year and it issued 4.2 million new shares when they were trading at a premium to NAV. Since its financial year end, a further 1.8 million new shares were issued.
The company declared a 4.2% increase in dividend for the year to 27.1p.
Merchants Trust's shares were trading 2.1% lower in London on Friday at 364.82p each.
"The impact of Covid-19 is a very present shadow at the moment and, as we write, markets have produced sharply negative returns in the first weeks of our new financial year," said Chair Colin Clark.
"As long-term investors, we are confident of our future returns and the investment team are actively reviewing individual company exposures and risks, and making portfolio adjustments, where necessary, to manage the income stream and to take advantage of exacerbated pricing anomalies," added Clark.
By Evelina Grecenko; [email protected]
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