(Alliance News) - Aberforth Split Level Income Trust PLC lowered its interim dividend higher and reported a rise in net asset value during the first half of its financial year.
For the six months to December 31, net asset value per share rose 35% to 70.7 pence from 52.5p at June 30. However, NAV per share fell 31% from 102.3p at the same time in 2019.
Shares in the company closed 4.5% lower at 65.70 pence each in London on Monday.
The trust reported a total asset total return of 27.6% during the period. During the first half the Numis Smaller Companies Index also delivered a total return of 27.6%.
Aberforth Split proposed an interim dividend of 0.92p per share, 39% lower year-on-year from 1.51p.
Vaccines for Covid-19 have provided a much needed fillip to weary investors and to the population in general, but their effective roll-out is essential to unlocking economic activity. Given the magnitude of this task, it is likely there will be some bumps along the way, not least through the spread of different strains of the virus.
Chair Angus Lennox said: "However, as we look beyond Covid-19, there are several significant reasons for optimism about the future of your Company. The world will recover from the significant economic shock of the virus. The signs are that this recovery has already started, to the benefit of the Managers’ value investment style and to the share prices of your Company’s holdings in recent months. Additionally, the signing of the Brexit trade deal should not be underestimated.
"The UK has been deemed a pariah to the international investing community since the 2016 referendum and the valuation multiples attributed to UK equities reflects this. Further down the market capitalisation scale, specifically into ASLIT’s investment universe, the valuations on offer are even more attractive and increase the chance of good absolute returns from investee companies in the coming years. The bargain basement equity valuations are not going unnoticed, with M&A activity on the rise."
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Aberforth Spli. (ASIT)