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(Alliance News) - Mercantile Investment Trust PLC on Wednesday declared an increased annual dividend as it outperformed its benchmark in 2019.
The stock closed 6.8% lower at 173.40 pence each on Wednesday in London.
In its financial year to the end of January, the FTSE 250-listed trust recorded a 28% return on net assets. In comparison, the FTSE All-Share Index - excluding constituents of the FTSE 100 Index and investment trusts - returned 17%.
Mercantile's net asset value per share rose to 275.8p as at January 31 from 221.2p recorded the year prior.
The company declared a fourth quarter dividend of 2.55p, taking its total annual dividend for 2019 to 6.6p, increasing by 4.8% from 6.3p declared for 2018.
Mercantile said its holdings in asset manager Intermediate Capital Group PLC, software company Aveva Group PLC, IT infrastructure provider Softcat, JD Sports Fashion PLC and Games Workshop Group PLC contributed positively to its performance. Engineering company Vesuvius PLC and loans provider Amigo Holdings PLC detracted from performance.
Looking ahead, Chair Angus Lennox said: "At some stage, the current Covid-19 crisis will pass and although the world may have changed significantly, a degree of normality will return. So, I find significant comfort in the holdings in the portfolio where our investment managers have chosen companies with strong balance sheets, able to ride out the storm, with good business models and operating in exciting industries."
By Ife Taiwo; ifetaiwo@alliancenews.com
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