(Alliance News) - Scottish American Investment Co PLC on Friday reported strong results for 2021, with growth in net asset value ahead of its peer group.
The Edinburgh-based investment company managed by Baillie Gifford reported a net asset value total return for 2021 of 22%, ahead of total return from global equities of 20%. It maintained its five-year position as the best performing fund in its Global Equity Income peer group in turns of total NAV return, it noted.
Scottish American said strong returns from its property investments of 25% and resilient operational performance of many investee companies had assisted the growth in NAV total return.
Its total income for the year was GBP28.0 million, up 19% from GBP23.6 million the prior year. Earnings per share were 12.79 pence, up 6.6% from 12.00p in 2020.
Its net assets jumped by 15% to GBP930.2 million at December 31 from GBP812.3 million in 2020, with NAV per share of 529.7p up 18% from 449.7p the year before.
Scottish American proposed a final dividend of 3.38p per share which will take the full-year dividend to 12.68p, up 5.6% from 12.00p in 2020. The company said strong growth in revenue means the dividend can continue to outperform the inflation rate of 5.4%.
Chair Peter Moon cautioned investors from reading too much into short-term results, especially given the macroeconomic volatility.
"We remain of the view that a long-term approach based on investing globally for sustainable growth is the best route to achieving SAINTS' aim of growing the dividend ahead of inflation over time. We have great confidence in the managers' approach, and this confidence has been further strengthened by the experiences of the past year," Moon said.
Moon step down as chair after the company's annual general meeting on April 5, and will be replaced by Senior Independent Director Nick Macpherson who will, in turn, be replaced by economist Bronwyn Curtis.
Scottish American shares were down 1.2% to 498.00 pence in London on Friday morning.
By Elizabeth Winter; elizabethwinter@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.