Thursday, 25 July 2013

Law Debenture - Half Year Results Update

In early March I posted the 2012 full year results for LWDB (here’s a link).

They have today announced half-year results to 30th June 2013. NAV total return for the six months  was 12.7%, compared to a total return of 8.5% for the FTSE Actuaries All-Share Index.

Net revenue per share was 8.84p, an increase of 7.4% over the corresponding period last year, as a result of a 17.2% increase in the investment trust and a 6.1% decrease in independent fiduciary services. Given this increase in revenues, I was a little disappointed they are proposing to hold the interim dividend at 4.5p. Having said that, this seems to be a pattern in recent years and the final dividend is used to adjust the total increase for the whole year. I have a total of 15p pencilled in for 2013 which would put it on a forward yield of 3.0%.

The share price has seen a strong rise since the start of the year - up over 17% to around 500p currently.

Ongoing charges, at 0.45%, continue to be very competitive.

More on this following the full year results.

As ever please DYOR.

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