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JPMorgan Smaller Cos Reports Decline In Net Asset Value; Ups Dividend

Thu, 17th Oct 2019 18:03

(Alliance News) - JPMorgan Smaller Cos IT PLC on Thursday said its net asset value per share at the end of the financial year decreased against a backdrop of difficult market conditions.

JPMorgan Smaller Cos net assets at July 31, decreased to GBP207.7 million from GBP227.1 million. The company's NAV per share fell 7.2% to 264.40 pence from 285.00p last year.

Chair Michael Quicke described the 2019 financial year as a "rollercoster" characterised by a negative first half followed by a partial recovery in the second half.

The trust's share price total return for year was negative 3.4%, above the benchmark return of negative 4.4%.

Quicke said: "In the second quarter of 2019, after the 29th March exit date came and went, the impact of this became more evident. GDP growth in the second quarter turned negative at -0.2% and the important purchasing managers indices turned down. In addition there was a marked decline in capital spending by companies. This led the Bank of England in August to reduce its GDP forecasts for both 2019 and 2020 to a lowly 1.3%. These difficult conditions led to a significant rise in the number of companies failing to achieve their budgets - there has been a 19% increase in profit warnings in the first half of 2019 in the UK compared to the previous year.

"Against this backdrop our composite index declined by -4.4% over the 12 months."

JPMorgan Smaller Cos is recommending a final dividend of 5.5p per share, 1.9% higher than 5.4p paid last year.

The stock closed up 1.1% at 233.00p on Thursday in London.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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