The BlackRock Throgmorton Trust PLC released its half-year report for the period ending May 31, 2024. The report highlights the companys financial performance and key developments during the period. Here is a summary of the report
Performance
The company delivered a strong performance with a Net Asset Value (NAV) total return of 19.2%, outperforming its Benchmark Index by 2.4 percentage points.
The share price total return underperformed the Benchmark Index by 4.3 percentage points due to a widening of the companys share price discount to NAV.
Over the longer term, the companys performance remains strong, with a 5-year NAV return of 33.0% and a 10-year NAV return of 147.9%.
Dividends
The company declared an increased interim dividend of 3.75p per share, compared to 3.30p per share in the previous period.
The revenue return per share for the period was 9.44 pence per share, an increase of 11.6% compared to the same period last year.
Portfolio and Investment Strategy
The portfolio manager, Dan Whitestone, highlights the continued merger and acquisition (M&A) activity in the UK market, which has boosted the companys performance.
The portfolio continues to focus on identifying financially strong, cash-generative companies with innovative and disruptive business models.
The company has increased its exposure to consumer and industrial sectors, which are expected to benefit from an improving economic backdrop.
Share Buyback Activity
During the period, the company bought back 4,265,234 ordinary shares for a total consideration of £25,477,000.
The companys share rating ranged between a discount to NAV of 3.6% at the start of the period to a widest discount of 11.0% in mid-April, ending the period at a discount of 9.2%.
Outlook
The portfolio manager remains optimistic about the opportunities in UK smaller companies, citing a significant mispricing in the sector.
He expects a gradual recovery in the operating environment, which may lead to improved profitability and valuations for the holdings in the companys portfolio.
Overall, the BlackRock Throgmorton Trust PLCs half-year report highlights strong financial performance, a focus on investing in UK smaller and mid-capitalization companies, and a commitment to creating long-term value for shareholders through a combination of capital growth and attractive total returns.