17th Jun 2022 14:41
(Alliance News) - Utilico Emerging Markets Trust PLC on Friday reported a rise in net asset value amid "devastating" impact from the Russian war in Ukraine.
Utilico Emerging Markets is an Epsom, England-based infrastructure investor.
Net asset value per share as at March 31 stood at 254.22 pence, up 11% from 228.54p year-on-year. Total return per share of 14.9%, building on last year's 30.2% return.
"This was ahead of the MSCI EM total return index which was down 6.9% over the same period," the company noted.
For the financial year ended on March 31, revenue dropped by 0.8% to GBP22.6 million. "This reflects both the impact of currencies and the increased shift of the portfolio into the Data Services and Digital Infrastructure sector which are lower yielding investments", noted the company.
Pretax profit fell to GBP74.4 million from GBP123.8 million in the previous year. Management fees and other expenses increased by 12.3% to GBP3.0 million in the year to March 31, from GBP2.7 million.
Chair John Rennocks said: "We are pleased to announce UEM turned in strong performance and importantly delivered a NAV total return of 14.9% for the year to March 31 2022, to end the year at an all-time high of 254.22p.
"The Russian war in Ukraine is devastating on a number of levels and the brutality of the Russian army will be a scar on liberal societies for decades to come. UEM has generally avoided investing in Russia due to weak governance and endemic corruption."
The company declared a fourth quarterly dividend of 2.00 pence per share for financial 2022. Dividends per share totalled 8.00p for the year, an increase of 3%.
It says its gains on investments fell to GBP58.3 million from GBP114.3 million a year ago.
Looking ahead, UEM said the short-term challenges, especially the war in Ukraine and the zero-Covid policy in China are likely to persist for much of this calendar year. But the company remains optimistic that, once these events are behind us and inflationary pressures subside, most economies will rebound due to delayed demand and government policy becoming more supportive.
Utilico Emerging Markets shares were up 1.5% at 210.00 pence each on Friday afternoon in London.
By Xindi Wei; [email protected]
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