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(Alliance News) - UIL Ltd on Tuesday said interest rates, heightened geopolitical tensions, and inflation had a negative impact on its business, causing net asset value to fall.
The closed-end Bermuda-incorporated investment company reported that NAV as at December 31 was 240.02 pence per share, down 8.0% from 260.89p at June 30. NAV total return over the half-year was negative 6.5% including an unchanged interim dividend of 4.00p per share, underperforming against the FTSE All-Share total index, which returned positive 5.1%.
Looking ahead, Chair Peter Burrows said: "For 2023 we are optimistic for the global economy. If a recession emerges in the developed world, we expect it to be shallow. We anticipate inflation and interest rates to recede over the year. We believe demand for commodities, especially battery commodities to be elevated. Consequently, we believe that headwinds are turning into tailwinds, which should be positive for equities."
UIL shares were 3.3% lower at 150.34 pence each in London on Tuesday afternoon.
By Tom Budszus, Alliance News reporter
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