Last checked at 13 Oct 2022 07:00
LONDON STOCK EXCHANGE ANNOUNCEMENT
The Mercantile Investment Trust plc
(the 'Company')
Half Year Report & Accounts for the six months ended 31st July 2022
Legal Entity Identifier: 549300BGX3CJIHLP2H42
Information disclosed in accordance with DTR 4.2.2
CHAIRMAN'S STATEMENT
Performance
The past six months have spanned a number of extraordinary geopolitical and economic developments which have been especially challenging for global and UK equity markets. At the beginning of the period, Russia's invasion of Ukraine cast the shadow of war over the European continent for the first time in seventy-five years. The invasion generated supply concerns in global energy and commodity markets, putting upward pressure on prices. Inflation, which was already at multi-decade highs in the US, Europe, and the UK, due to tight labour markets and pandemic-induced supply bottlenecks, climbed even higher. Central banks, including the Bank of England, were forced to make successive interest rate rises and have signalled further tightening ahead. Fears about inflation quickly led to fears of recession.
In the UK, the government responded to the higher costs with cash support for households, but as energy bills continued to rise, public pressure mounted for further assistance to individuals and businesses and labour unions threatened industrial action to protect their members' real incomes.
Like their global counterparts, UK equities weakened in the face of so many concerns. This environment favoured larger, defensive UK stocks and the mid and smaller cap stocks in which the Company invests lagged, even those businesses we own which typically grow faster and generate greater long term returns than larger, less innovative companies. These are the companies your Investment Managers seek - resilient, well-managed, world class businesses, capable of surviving near-term challenges and volatility and benefiting from long-term structural growth.
Against this backdrop, for the six months to 31st July 2022 the Company produced a net asset total return, based on debt being valued at fair of -11.5%. With the debt valued at par, the return was -13.2%. This compares with the total return of -7.8% from our benchmark index. Over the six months, the discount of the share price to net asset value (with debt being valued at fair value) widened, from 9.7% to 12.7%, resulting in a total return to shareholders for the period of -14.2%. To place these results within the longer-term context in which the Company operates, this performance follows a year of very strong absolute returns during the financial year ended 31st January 2022 and outperformance over three and five years and the longer term. The Company's average annualised return over the ten years ended 31st July 2022 was 10.4% on a net asset total return fair value basis and 10.8% in share price terms, both returns outpacing the benchmark return of 8.9%.
The Company's long term track record of high absolute returns and outperformance of the broader small and medium cap market attests to your Investment Managers' skill at identifying these future market leaders.
Returns and dividends
The Company's revenue account continues to improve, having been severely impacted by the consequences of COVID-19 in 2020. Although we are yet to witness a full recovery, the revenue return in the first half of the Company's current financial year increased to 3.74 pence per share, up from 2.89 pence per share for the corresponding period last year, an increase of just under 30%.
A first quarterly interim dividend of 1.35 pence was paid on 1st August 2022 and a second quarterly interim dividend of 1.35 pence per share has been declared by the Board, payable on 1st November 2022 to shareholders on the register at close of business on 30th September 2022. This brings the total dividend for the year to date to 2.70 pence (2021: 2.70 pence). The Board currently intends to pay a third quarterly interim dividend of 1.35 pence in early February 2023.
The level of the fourth quarterly interim dividend will depend on income received by the Company for the full financial year. As has been stated previously and in line with the Company's investment policy, the Board recognises shareholders' desire for a growing dividend whilst recognising the benefits of retaining a healthy revenue reserve for the future.
Discount and share repurchases
At the end of the last financial year, the Company's shares traded at a 9.7% discount. Over the subsequent six months the discount has widened, closing the half year period at 12.7%. The widening of discounts over the period has been a general theme for investment companies across many asset classes. In the six months to 31st July 2022, the Board utilised the Company's authority to buy back shares and repurchased a total of 1,252,231 shares at a cost of £2.28 million. These shares were purchased at an average discount to NAV of 15.5%, producing a modest accretion to the NAV for continuing shareholders.
Gearing and debt
The ability to borrow money for investment is a key differentiating feature of investment trusts. The Board of Directors sets the overall strategic gearing policy and guidelines, reviewing these at each Board meeting and it further determines the source and use of available leverage. At present the Investment Managers' permitted gearing range is 10% net cash to 20% geared in normal market conditions. The gearing level as at 31st July 2022 was 7.9%.
The Company's gearing strategy is implemented through the use of long-dated, fixed-rate financing with the Board ultimately aiming to ensure a diversification of source, tenor and cost of leverage available to the Company. As a reminder the Company has in place a £3.85 million perpetual debenture and a £175 million debenture repayable on 25th February 2030, together with £150 million of long-term debt raised in September 2021 through the issue of three fixed rate, senior unsecured privately placed notes (the 'Notes'). The Notes mature between 2041 and 2061 and were secured with a blended rate of 1.94% when interest rates were near their lows.
The fixed debt was supplemented by a £100 million floating rate revolving credit facility which was in place at the reporting period end but was retired in August 2022, ahead of its contractual expiry date, at no additional cost to the Company.
Environmental, social and governance ('ESG') policy
In the search for tomorrow's UK market leaders our Investment Managers look beyond the pure financial attributes of a company or its shares, believing that a sustainably and well run company will produce excess returns over the long term. In looking for sustainable business models and long-lasting competitive advantages they scrutinise the environmental, social and governance ('ESG') aspects of the companies in which we invest. ESG considerations are fully integrated into the Investment Managers' investment process and the Board shares the Investment Managers' view of the importance of ESG factors when making investments for the long term and of the necessity of continued engagement with investee companies throughout the duration of the investment.
Further information on the Investment Managers' ESG process and engagement is set out in the ESG Report on pages 15 to 17 of the Company's Half Year Report & Financial Statements for the six months ended 31st July 2022 ('2022 Half Year Report').
Board succession
The Board plans for succession to ensure it retains an appropriate balance of skills and knowledge. To this end, the Board is currently conducting a search process to replace Harry Morley who joined the Board in 2014 and will be retiring from the Board at the Annual General Meeting in 2023.
Stay informed
The Company delivers email updates on The Mercantile's progress with regular news and views, as well as the latest performance. If you have not already signed up to receive these communications and you wish to do so you can opt in via www.Mercantile-Registration.co.uk or by scanning the QR code which can be found in the 2022 Half Year Report.
Outlook
We share the Investment Managers' concerns about the near-term impact that global inflation and increased costs will have on consumer demand and economic growth, not just in the UK, but around the world. The appointment of a new British Prime Minister and Chancellor has brought the prospect of helpful supply side reforms and increased support in the form of lower taxation for UK businesses and individuals. However, the unfunded nature of these efforts to stimulate economic growth, and the immediate absence of a medium-term funding strategy, has caused currency volatility and raised the prospect of sharply higher interest rates, creating more short-term uncertainty for the inflation outlook and the UK consumer. In recent days, the Chancellor has tried to calm concerns about the deterioration in the fiscal outlook by promising to deliver a detailed budget plan on 31st October, and the Bank of England announced plans to support gilt markets with a limited window of bond purchases, but it remains to be seen whether the new government's break with long-established economic orthodoxy will pay off. Financial markets will remain jittery meantime.
However, given the extent of the recent market sell-off, concerns about the government's approach are, arguably, mostly priced into UK share prices at current levels, and like the Investment Managers, we believe the valuations of many interesting companies are now looking especially enticing. Furthermore, the UK market remains attractively priced relative to many of its counterparts in other industrialised economies. The FTSE 250 has for many years attracted corporate activity. The low level of sterling is likely to increase this appeal. So, although there will no doubt be more gloomy headlines about rising prices, rising rates and recession in coming months, the Board and I remain convinced that investing in companies with positive long term growth prospects that your Investment Managers target, will generate long term shareholder value.
In our view there is thus good reason to look to the future with some confidence, and we encourage the Investment Managers to continue their search for great, entrepreneurial companies, with favourable prospects, capable of delivering excellent returns to shareholders, and leading the way to better times.
Angus Gordon Lennox
Chairman
13th October 2022
INVESTMENT MANAGERS' REPORT
Setting the scene: challenging financial markets
The first half of the year has been challenging for financial markets. Having recovered from the pandemic-driven losses and ultimately reached all-time highs last year, this year markets struggled following the Russian invasion of Ukraine and the multitude of first-and second-order knock-on effects. Many of these are only just beginning to be understood while others have likely not yet even been contemplated. Our target market of UK medium and smaller companies (the 'Benchmark') was far from immune, declining by 7.8% in this period.
While the post pandemic economic recovery had been gaining momentum, this was dampened by the multitude of supply side issues combined with rising and broad-based inflation. These challenges have been further exacerbated by the war in Europe, with the energy situation looking highly precarious. Against a backdrop of runaway inflation, Central Banks have begun the process of monetary tightening, but with such huge supply side constraints, this has thus far had limited impact. In the UK specifically, at a time when consumers face one of the largest squeezes on their discretionary income in living memory and many businesses are struggling to meet higher labour and input costs, government decision-making was effectively suspended for several months over the summer as the ruling Conservative Party undertook a lengthy leadership selection process. The new Prime Minister's initial, unorthodox efforts to boost growth by implementing unfunded corporate and individual tax cuts have been greeted with widespread criticism. The announcement triggered significant financial market volatility, with equity markets dropping sharply, the pound briefly hitting an all-time low against the US dollar and a sharp rise in gilt yields, which prompted the Bank of England to announce a short-term bond-buying programme to stabilise the gilt market.
Mercantile performance
For the six months to 31st July 2022, the Company delivered a total return on net assets, with debt valued at par, of -13.2%, behind the Benchmark's -7.8%. The underperformance was chiefly driven by stock selection, although gearing, which averaged 10.3%, also detracted given the declining market. At a portfolio level, performance was primarily hindered by our holdings in the consumer discretionary sector, in companies such as Watches of Switzerland, Dunelm and Jet2.
While the operational performance of companies such as Watches of Switzerland and Dunelm has remained encouraging, with continued growth in earnings and a promising long-term growth runway ahead, the shares have been under pressure due to understandable concerns about the outlook for discretionary spending. Jet2 has also been impacted by these concerns while their current financial performance has been held back by the widely reported travel disruption caused by the ineffectiveness of the airport operators.
Portfolio highlights in the first half of this year felt limited, but we are pleased with the performance of our longstanding investment in Telecom Plus, the multi-utility provider with an everyday low-price proposition, which has been a beneficiary of the changing landscape in the energy supply market. In addition, another long-term holding, in asset manager Brewin Dolphin, was subject to an agreed takeover by Royal Bank of Canada (RBC), which came at a handsome premium.
In view of the deterioration in the economic outlook, over the first half of the year we made some notable changes to the portfolio. The most material of these is the reduction in the portfolio's exposure to the consumer discretionary sector, offset by increases in the telecommunications and energy sectors. The portfolio's exposure to energy has been increased both directly, by investing in energy producers, and indirectly, by investing in those companies that provide goods and services to the energy industry and indeed those that distribute it. We have maintained our very large underweight in the real estate sector, where we have no holdings, as we expect valuations to come under pressure in an environment of potentially rapid increases to interest and thus the discount rates upon which property valuations are based.
Outlook for the coming months
The Russian invasion of Ukraine remains at the forefront of our minds. Even seven months on the situation remains fluid and it would be foolhardy to predict how it will play out, but it is evident that the war has driven further inflation into the system. This, combined with higher interest rates, is having a real impact on consumer demand and thus on global economic growth.
The market reaction to the fiscal loosening announced by the new Chancellor has been extreme, sending sovereign yields up aggressively while sterling has moved closer to parity with the US dollar. This increases the probability of the Bank of England raising rates more aggressively than previously expected which could have immediate economic consequences as well as further repercussions for investment decisions.
Despite this unsettling backdrop and a broad array of risks that could impact near-term performance, portfolio companies have for the most part still been performing reasonably well, and we believe they possess the wherewithal to withstand near-term challenges and continue to thrive and evolve into tomorrow's market leaders. While there is a great deal of nervousness around the near-term outlook and a recession is increasingly likely, much of this is already reflected in company valuations, which are increasingly compelling. We are excited by the opportunities created by the recent sell-off. We will therefore maintain our focus on investing in structurally robust businesses that operate in growing end markets and possess the ability to invest capital at high returns, as we believe that these offer the best prospect of delivering compelling returns for our shareholders over the long-term.
Guy Anderson
Anthony Lynch
Investment Managers
13th October 2022
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half year report.
Principal risks and uncertainties
The principal risks and uncertainties faced by the Company fall into the following broad categories: investment and strategy; accounting, legal and regulatory; corporate governance and shareholder relations; operational and cybercrime; and financial. Information on each of these areas is given in the Directors' Report within the Annual Report and Financial Statements for the year ended 31st January 2022.
Related parties transactions
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.
Going concern
The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half year financial report. For these reasons, they consider there is sufficient evidence to continue to adopt the going concern basis in preparing the accounts.
Directors' responsibilities
The Board of Directors confirms that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the half year financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company, and of the assets, liabilities, financial position and net return of the Company as at 31st July 2022 as required by the UK Listing Authority Disclosure Guidance and Transparency Rules ('DTRs') 4.2.4R; and
(ii) the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the DTRs.
In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and
• notify the Company's shareholders in writing about the use, if any, of disclosure exemptions in FRS102 in the preparation of the financial statements;
and the Directors confirm that they have done so.
For and on behalf of the Board
Angus Gordon Lennox
Chairman
13th October 2022
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31st July 2022
(Unaudited) | (Unaudited) | (Audited) | |||||||
Six months ended | Six months ended | Year ended | |||||||
31st July 2022 | 31st July 2021 | 31st January 2022 | |||||||
Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
(Losses)/gains on investments held at fair value through profit or loss | |||||||||
- | (311,635) | (311,635) | - | 483,704 | 483,704 | - | 228,162 | 228,162 | |
Net foreign currency gains | - | 1 | 1 | - | 22 | 22 | - | 23 | 23 |
Income from investments | 33,460 | - | 33,460 | 27,640 | - | 27,640 | 60,986 | - | 60,986 |
Interest receivable and similar income | |||||||||
588 | - | 588 | 5 | - | 5 | 33 | - | 33 | |
Gross return/(loss) | 34,048 | (311,634) | (277,586) | 27,645 | 483,726 | 511,371 | 61,019 | 228,185 | 289,204 |
Management fee | (1,101) | (2,568) | (3,669) | (1,342) | (3,133) | (4,475) | (2,757) | (6,434) | (9,191) |
Other administrative expenses | (632) | - | (632) | (795) | - | (795) | (1,439) | - | (1,439) |
Net return/(loss) before finance costs and taxation |
|
|
|
|
|
|
|
|
|
32,315 | (314,202) | (281,887) | 25,508 | 480,593 | 506,101 | 56,823 | 221,751 | 278,574 | |
Finance costs | (2,595) | (6,056) | (8,651) | (1,789) | (4,174) | (5,963) | (3,851) | (8,984) | (12,835) |
Net return/(loss) before taxation |
|
|
|
|
|
|
|
|
|
29,720 | (320,258) | (290,538) | 23,719 | 476,419 | 500,138 | 52,972 | 212,767 | 265,739 | |
Taxation charge (note 3) | (140) | - | (140) | (875) | - | (875) | (1,494) | - | (1,494) |
Net return/(loss) after taxation |
|
|
|
|
|
|
|
|
|
29,580 | (320,258) | (290,678) | 22,844 | 476,419 | 499,263 | 51,478 | 212,767 | 264,245 | |
Return/(loss) per share (note 4) |
|
|
|
|
|
|
|
|
|
3.74p | (40.47)p | (36.73)p | 2.89p | 60.19p | 63.08p | 6.50p | 26.88p | 33.38p | |
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.
The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.
The return/(loss) per share represents the profit/(loss) per share for the year and also the total comprehensive income per share.
STATEMENT OF CHANGES IN EQUITY
Called up |
| Capital |
|
| Total | |
share | Share | redemption | Capital | Revenue | shareholders | |
capital | premium | reserve | reserves1 | reserve1 | funds | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Six months ended 31st July 2022 (Unaudited) |
|
|
|
|
|
|
At 31st January 2022 | 23,612 | 23,459 | 13,158 | 2,076,379 | 61,603 | 2,198,211 |
Repurchase of shares into Treasury | - | - | - | (2,287) | - | (2,287) |
Net (loss)/return | - | - | - | (320,258) | 29,580 | (290,678) |
Dividends paid in the period (note 5) | - | - | - | - | (33,235) | (33,235) |
At 31st July 2022 | 23,612 | 23,459 | 13,158 | 1,753,834 | 57,948 | 1,872,011 |
Six months ended 31st July 2021 (Unaudited) |
|
|
|
|
|
|
At 31st January 2021 | 23,612 | 23,459 | 13,158 | 1,863,612 | 63,158 | 1,986,999 |
Net return | - | - | - | 476,419 | 22,844 | 499,263 |
Dividends paid in the period (note 5) | - | - | - | - | (31,661) | (31,661) |
At 31st July 2021 | 23,612 | 23,459 | 13,158 | 2,340,031 | 54,341 | 2,454,601 |
Year ended 31st January 2022 (audited) |
|
|
|
|
|
|
At 31st January 2021 | 23,612 | 23,459 | 13,158 | 1,863,612 | 63,158 | 1,986,999 |
Net return | - | - | - | 212,767 | 51,478 | 264,245 |
Dividends paid in the year (note 5) | - | - | - | - | (53,033) | (53,033) |
At 31st January 2022 | 23,612 | 23,459 | 13,158 | 2,076,379 | 61,603 | 2,198,211 |
1 These reserves form the distributable reserve of the Company and can be used to fund distributions to investors via dividend payments.
STATEMENT OF FINANCIAL POSITION
At 31st July 2022
(Unaudited) | (Unaudited) | (Audited) | |
31st July 2022 | 31st July 2021 | 31st January 2022 | |
£'000 | £'000 | £'000 | |
Fixed assets |
|
|
|
Investments held at fair value through profit or loss | 2,019,988 | 2,700,853 | 2,465,122 |
Current assets |
|
|
|
Debtors | 30,360 | 6,802 | 4,271 |
Cash and short term deposits | 251 | 330 | 2,765 |
Cash equivalents: liquidity fund | 165,810 | 9,567 | 62,896 |
196,421 | 16,699 | 69,908 | |
Current liabilities |
|
|
|
Creditors: amounts falling due within one year | (16,621) | (4,940) | (9,124) |
Net current assets | 179,800 | 11,759 | 60,808 |
Total assets less current liabilities | 2,199,788 | 2,712,612 | 2,525,930 |
Creditors: amounts falling due after more than one year | (327,777) | (258,011) | (327,719) |
Net assets | 1,872,011 | 2,454,601 | 2,198,211 |
Capital and reserves |
|
|
|
Called up share capital | 23,612 | 23,612 | 23,612 |
Share premium | 23,459 | 23,459 | 23,459 |
Capital redemption reserve | 13,158 | 13,158 | 13,158 |
Capital reserves | 1,753,834 | 2,340,031 | 2,076,379 |
Revenue reserve | 57,948 | 54,341 | 61,603 |
Total shareholders' funds | 1,872,011 | 2,454,601 | 2,198,211 |
Net asset value per share (note 6) | 236.9p | 310.1p | 277.7p |
STATEMENT OF CASH FLOWS
For the six months ended 31st July 2022
(Unaudited) | (Unaudited) | (Audited) | |
Six months ended | Six months ended | Year ended | |
31st July 2022 | 31st July 2021 | 31st January 2022 | |
£'000 | £'000 | £'000 | |
Net cash outflow from operations before dividends and interest | |||
(4,301) | (5,343) | (10,642) | |
Dividends received | 29,687 | 23,092 | 58,827 |
Interest received | 420 | 5 | 34 |
Overseas tax recovered | 84 | 430 | 429 |
Interest paid | (7,071) | (5,919) | (11,638) |
Net cash inflow from operating activities | 18,819 | 12,265 | 37,010 |
Purchases of investments | (237,596) | (359,696) | (693,957) |
Sales of investments | 354,694 | 365,609 | 682,614 |
Settlement of foreign currency contracts | 3 | 6 | 7 |
Net cash inflow/(outflow) from investing activities | 117,101 | 5,919 | (11,336) |
Dividends paid | (33,235) | (31,661) | (53,033) |
Repurchase of shares into Treasury | (2,285) | - | - |
Drawdown of loans | - | - | 149,659 |
Repayment of loans | - | - | (80,000) |
Net cash (outflow)/inflow from financing activities | (35,520) | (31,661) | 16,626 |
Increase/(decrease) in cash and cash equivalents | 100,400 | (13,477) | 42,300 |
Cash and cash equivalents at start of period/year | 65,661 | 23,347 | 23,347 |
Unrealised gain on foreign currency cash and cash equivalents | - | 27 | 14 |
Cash and cash equivalents at end of period/year | 166,061 | 9,897 | 65,661 |
Increase/(decrease) in cash and cash equivalents | 100,400 | (13,477) | 42,300 |
Cash and cash equivalents consist of: |
|
|
|
Cash and short term deposits | 251 | 330 | 2,765 |
Cash held in JPMorgan Sterling Liquidity Fund | 165,810 | 9,567 | 62,896 |
Total | 166,061 | 9,897 | 65,661 |
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31st July 2022
1. Financial statements
The information contained within the financial statements in this half year report has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 31st January 2022 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and include the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' of the United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the revised 'SORP') issued by the Association of Investment Companies in July 2022.
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 31st July 2022.
All of the Company's operations are of a continuing nature.
The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 31st January 2022.
3. Taxation
The Company's effective corporation tax rate is nil, as deductible expenses exceed taxable income. The tax charge comprises overseas withholding tax.
4. Return/(loss) per share
(Unaudited) | (Unaudited) | (Audited) | |
Six months ended | Six months ended | Year ended | |
31st July 2022 | 31st July 2021 | 31st January 2022 | |
£'000 | £'000 | £'000 | |
Return/(loss) per share is based on the following: | |||
Revenue return | 29,580 | 22,844 | 51,478 |
Capital (loss)/return | (320,258) | 476,419 | 212,767 |
Total (loss)/return | (290,678) | 499,263 | 264,245 |
Weighted average number of shares in issue | 791,268,518 | 791,522,893 | 791,522,893 |
Revenue return per share | 3.74p | 2.89p | 6.50p |
Capital (loss)/return per share | (40.47)p | 60.19p | 26.88p |
Total (loss)/return per share | (36.73)p | 63.08p | 33.38p |
5. Dividends paid
(Unaudited) | (Unaudited) | (Audited) | |
Six months ended | Six months ended | Year ended | |
31st July 2022 | 31st July 2021 | 31st January 2022 | |
£'000 | £'000 | £'000 | |
2022 fourth quarterly dividend of 2.85p (2021: 2.65p) paid to shareholders in May | |||
22,558 | 20,975 | 20,975 | |
2023 first quarterly dividend of 1.35p (2022: 1.35p) paid to shareholders in August1 | |||
10,677 | 10,686 | 10,686 | |
2022 second quarterly dividend of 1.35p paid to shareholders in November | |||
n/a | n/a | 10,686 | |
2022 third quarterly dividend of 1.35p paid to shareholders in February1 | |||
n/a | n/a | 10,686 | |
Total dividends paid in the period | 33,235 | 31,661 | 53,033 |
1 The Company irrevocably transfers the funds to its Registrar in the month prior to which the dividend is paid to shareholders.
All dividends paid in the period/year have been funded from the revenue reserve.
The first 2023 quarterly dividend of 1.35p (2022: 1.35p) per share, amounting to £10,677,000 (2022: £10,686,000) was paid on 1st August 2022 in respect of the year ending 31st January 2023.
A second 2023 quarterly dividend of 1.35p (2022: 1.35p) per share, amounting to £10,669,000 (2022: £10,686,000), has been declared payable in respect of the year ending 31st January 2023.
6. Net asset value per share
(Unaudited) | (Unaudited) | (Audited) | |
Six months ended | Six months ended | Year ended | |
31st July 2022 | 31st July 2021 | 31st January 2022 | |
£'000 | £'000 | £'000 | |
Net assets (£'000) | 1,872,011 | 2,454,601 | 2,198,211 |
Number of 2.5p ordinary shares in issue | 790,270,662 | 791,522,893 | 791,522,893 |
Net asset value per share | 236.9p | 310.1p | 277.7p |
For further information, please contact:
Alison Vincent
For and on behalf of JPMorgan Funds Limited, Company Secretary 020 7742 4000
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
JPMORGAN FUNDS LIMITED
ENDS
A copy of the Half Year Report 2022 will shortly be submitted to the FCA's National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The half year will also shortly be available on the Company's website at www.mercantileit.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.