MANCHESTER AND LONDON INVESTMENT TRUST PLC
(the “Company”)
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 JULY 2021
The full Annual Report and Financial Statements for the year ended 31 July 2021 can be found on the Company’s website at www.mlcapman.com/manchester-london-investment-trust-plc.
STRATEGIC REPORT
Financial Summary
| Total Return | Year to 31 July 2021 |
Year to 31 July 2020 |
Percentage increase |
| Total return (£000) | 22,222 | 24,037 | (7.6%) |
| Return per Share | 57.10p | 74.74p | (23.6%) |
| Total revenue return per Share† | (4.77p) | (5.47p) | 12.8% |
| Dividend per Share | 14.00p | 14.00p | 0.00% |
| Capital | As at 31 July 2021 |
As at 31 July 2020 |
Percentage increase |
| Net assets attributable to equity Shareholders(i) (£000) | 269,686 | 225,933 | 19.4% |
| Net asset value (“NAV”) per Share | 665.43p | 625.23p | 6.4% |
| NAV total return(ii)† | 8.7% | 12.8% | • |
| Benchmark performance – total return basis(iii) | 26.1% | (19.6%) | • |
| Share price | 574.00p | 630.00p | (8.9)% |
| Share price premium/(discount) to NAV† | (13.7%) | 0.76% | • |
(i) NAV as at 31 July 2021 includes a net £26,946,000 increase in respect of new Shares issued in the year (2020: £39,894,000 increase).
(ii) Total return including dividends reinvested, as sourced from Bloomberg.
(iii) The Company’s benchmark is the MSCI UK Investable Market Index (“MXGBIM or the “benchmark”), as sourced from Bloomberg.
| Ongoing Charges | Year to 31 July 2021 |
Year to 31 July 2020 |
| Ongoing charges as a percentage of average net assets*† | 0.78% | 0.77% |
* Based on total expenses, excluding finance costs and certain non-recurring items for the year and average monthly NAV.
† Alternative performance measure. Details provided in the Glossary below.
CHAIRMAN’S STATEMENT
Results for the year ended 31 July 2021
The portfolio remains focused on larger capitalisation, intellectual property rich companies listed in developed markets which are investing for growth.
Manchester and London Investment Trust plc’s (the “Company”) portfolio performance for the financial year under review has led to a NAV total return per Share of 8.7%* (2020: 12.8%*). The outperformance of the Company against our benchmark for the three years to 31 July 2021 on a total return basis now stands at 32.2%* (2020: 68.5%*).
At the year end, the Shares traded at a 13.7% discount to their NAV per Share, compared to a premium of 0.8% in 2020. Whilst a discount is not ideal, many of the larger technology focused investments trusts listed in the UK also experienced widening discounts.
Dividend
The Directors are proposing a final ordinary dividend of 7.0 pence per Share for the financial year 2021. Accordingly, on a per Share basis, the dividends proposed or paid out in respect of the 2021 financial year total 14.0 pence, including the 7.0 pence interim dividend paid in May 2021. These dividends represent a yield of 2.4% on the Share price as at the year-end (2020: 2.2%).
Shareholder Benefits
I would like to remind Shareholders that the two centre court debentures for The All England Lawn Tennis Ground Ltd that were the subject of an annual draw were sold by the Company as announced on 25 June 2020 and the proceeds reinvested in the portfolio. Therefore this benefit is no longer offered.
Annual General Meeting
Our forty-ninth Annual General Meeting (“AGM”) will be held on 3 November 2021 at 12.00 noon at 12a Princes Gate Mews, London, SW7 2PS. Please do read further details on restrictions on attendance at this year’s AGM, which are contained within the AGM notice.
David Harris
Chairman