(Alliance News) - Investment Co PLC on Monday cut its annual dividend as its net asset value fell due to tough market conditions from Brexit to trade war worries.
As at June 30, Investment Co's net asset value per share was 348.28 pence, down 4.1% from 363.27p the same date the year before. Net assets dropped by 4.1% to GBP16.6 million from GBP17.3 million.
The firm's share price was 298.00p at the end of June, reflecting a 14% discount to net asset value.
Shares in Investment Co were untraded on the day Monday, last quoted at 305.24p, an improvement since the year-end.
The company said the first half of its financial year was difficult, with weakening global economic growth, ongoing Brexit negotiations and trade war worries triggering an intense sell-off period.
However, there was a recovery in investor sentiment in the second half of the year as the US Federal Reserve took on a more dovish stance, hinting at interest rate cuts.
Portfolio-wise, Investment Co has a total of 61 investment holdings in 55 companies.
Investment Co declared a dividend of 17.99 pence per share, down 5% from 20.70p the year before.
"The company remains small relative to its fixed cost base, and its viability is dependent not just upon performance but also its ability to grow by attracting further capital. My board colleagues and I are wholly committed to exploring all appropriate opportunities that are likely to enhance long term shareholder returns. We remain fully cognisant of the risks to capital in what are proving to be testing markets," said Chair Ian Dighe.
Investment Co. (INV)