The Law Debenture Corporation released its half-year report for the period ending June 30, 2024, showcasing strong performance. The companys net asset value (NAV) total return, including debt and independent professional services (IPS) business at fair value, was 9.7%, outperforming its benchmark, the FTSE All-Share Index, which delivered 7.4%. The share price total return also marginally outperformed the FTSE Actuaries All-Share Index. The IPS business contributed significantly to this performance, with an 8.8% revenue increase and a 9.2% rise in profit before tax. The company maintained its low ongoing charges of 0.48%, compared to the industry average of 1.21%.
The companys investment managers continued to build on their successful long-term record, and the IPS business entered its seventh year of consistent growth. The dividend highlights include a 4.9% increase in the first interim dividend, and the intention to maintain or increase the total dividend for 2024. The IPS business, which accounts for 20% of the NAV, has funded approximately 34% of dividends in the last decade.
The outlook for the Group remains positive, with the combination of the IPS business and the investment portfolio offering a unique and well-diversified model. The investment managers are confident in their approach, focusing on high-quality businesses with competitive advantages and good long-term growth prospects.
Law Debenture Corp PLC Financials and Debt Comparison
YTD, 1 Year, 3 Years, 5 Years, and 10 Years Returns
| Metric | YTD | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|---|
| NAV total return (with debt at par) | 9.6% | 16.2% | 16.5% | 48.7% | 113.2% |
| NAV total return (with debt at fair value) | 9.7% | 15.0% | 25.8% | 61.1% | 125.5% |
| FTSE Actuaries All-Share Index Total Return | 7.4% | 13.0% | 23.9% | 30.9% | 77.8% |
| Share price total return | 7.7% | 14.7% | 26.8% | 78.0% | 137.2% |
| Change in Retail Price Index | 2.0% | 2.7% | 27.1% | 33.4% | 50.8% |
Dividend Highlights
| Metric | Value |
|---|---|
| First interim dividend of 2024 | 8.0 pence per ordinary share |
| Total dividend of 2023 | 32.0 pence per ordinary share |
| Dividend yield as of July 24, 2024 | 3.6% |
| Total dividend income from the portfolio | £19.9m |
IPS Highlights
| Metric | Value |
|---|---|
| Net revenue growth YOY | 8.8% |
| Profit before tax growth YOY | 9.2% |
| Percentage of dividends funded by IPS in the last 10 years | 34% |
Financial Summary (in £000)
| Metric | Six months ended June 30, 2024 | Six months ended June 30, 2023 | Twelve months ended December 31, 2023 |
|---|---|---|---|
| Net Asset Value - with debt and IPS at fair value | 1,120,611 | 1,009,140 | 1,048,304 |
| Total Net Assets per the statement of financial position | 913,156 | 812,578 | 854,229 |
| NAV per share at fair value (pence) | 857.88 | 775.92 | 802.67 |
| Revenue return per share (pence) | 19.00 | 18.09 | 33.43 |
| Capital return/ (loss) per share (pence) | 43.78 | (5.26) | 24.47 |
| Dividends per share (pence) | 8.00 | 7.625 | 32.00 |
| Share price (pence) | 845 | 767 | 801 |
| Ongoing charges | 0.48% | 0.48% | 0.49% |
| Net gearing | 12% | 13% | 13% |
| Premium/ (discount) | (1.50) | (1.15) | (0.21) |