Manchester & London -Annual Financial Report

MANCHESTER ND LONDON INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 JULY 2018

STRATEGIC REPORT

Financial Summary

Total Return Year to  
31 July  
 2018 
Year to  
31 July  
2017  
Percentage 
 increase/ 
(decrease)

Total return (£’000)

26,792 

20,055  

33.59% 

Return per Ordinary Share

115.27p 

92.43p  

24.71% 

Total revenue return per Ordinary Share

(2.00p)

0.91p(i)

(319.78%)

Dividend per Ordinary Share

12.00p 

9.00p  

33.33% 

   

Capital As at 
31 July 
2018 
As at 
31 July 
2017 
Percentage 
increase/ 
(decrease) 

Net assets attributable to equity Shareholders(ii) (£’000)

130,388

94,661 

37.74% 

Net asset value (“NAV”) per Ordinary Share

532.81p

429.05p 

24.18% 

NAV total return(iii)†

26.87%

26.91%

(0.04%)

Benchmark performance - Total return basis(iv)

9.23%

14.71%

(5.48%)

Share price

526.00p

381.00p

38.06% 

Share price discount to NAV

1.28%

11.20%

(9.92%)

 

Ongoing Charges Year to 
31 July 
2018 
Year to
31 July
2017
Ongoing charges as a percentage of average net assets*
1.00%

0.95%

* Calculated in accordance with the guidelines issued by the Association of Investment Companies (the “AIC”).
 See Glossary below.


CHAIRMAN’S STATEMENT

Results for the year ended 31 July 2018

The portfolio remains focused on larger capitalisation stocks listed in developed markets which are seeking global growth.

The Company’s portfolio performance for the financial year under review has led to a NAV total return per Share of 26.9%* (2017: 22.3%*). The outperformance of the Company against our benchmark for the three years to 31 July 2018 on a total return basis now stands at 67.3%* (2017:36.6%*).

The discount the Shares trade at to their NAV per Share has narrowed during the year and was just over 1% at the year end (2017:11.2%).

Dividend

The Directors are proposing a final ordinary dividend of 8.0 pence per Share for the financial year 2018. Accordingly, on a per Share basis, the dividends proposed or paid out in respect of the 2018 financial year total 12.0 pence, including the 4.0 pence interim dividend paid in May 2018. These dividends represent a yield of 2.3% on the Share price as at the year end (2017: 2.4%).

Alternative Investment Fund Manager and Depositary

Following the increase in its assets under management, the Company appointed its Investment Manager, M&L Capital Management Limited (the “Manager” or “MLCM”), as the Alternative Investment Fund Manager (the “AIFM”) of the Company and Indos Financial Limited as its Depositary on 17 January 2018, in accordance with the requirements of the EU Alternative Investment Fund Managers Directive (“AIFMD”).

The Board

The Board is delighted to welcome Daniel Wright who was appointed as a non-executive Director of the Company on 29 October 2018. Mr Wright, a chartered accountant, has a broad range of experience in both the public and private sectors and is currently the executive chairman of Accrol Group Holdings plc.

I shall be retiring from the Board at the conclusion of the forthcoming Annual General Meeting, when David Harris will succeed me as Chairman of the Company. Daniel Wright will become the Audit Committee chairman and the Senior Independent Director following the Annual General Meeting. The Audit Committee will comprise Daniel Wright and David Harris.

I have every confidence in the future of the Company under the direction of my colleagues.

Annual General Meeting

I look forward to welcoming Shareholders to our forty-sixth Annual General Meeting, to be held at the Members Room, Chartered Accountants’ Hall, One Moorgate Place, London EC2R 6EA at 11.45 am on Tuesday, 15 January 2019.

Peter Stanley
Chairman