City of London Inv Trust (CTY)

Sector:

Investment Firms

Index:

FTSE 250

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429.00p
   
  • Change Today:
      1.50p
  • 52 Week High: 436.00
  • 52 Week Low: 376.00
  • Currency: UK Pounds
  • Shares Issued: 378.83m
  • Volume: 413,895
  • Market Cap: £1,625.20m
  • RiskGrade: 46
  • Beta: 0.01

City of London investment trust earnings flattened by sterling

Date: Thursday 18 Sep 2014

LONDON (ShareCast) - City of London Investment Trust (CTY) said it had a "satisfactory year" after results were hit by the strength in sterling and weak economies overseas.
The group, whose largest blue-chip investments include Royal Dutch Shell, British American Tobacco and HSBC, said the total return on net asset value was 14.7% during the year to 30 June, compared with a return of 23.8% the previous year.

Earnings per share increased by just 0.4% as an 11% rise in investment income to £45.6m was offset by a 25m increase in shares in issue. CTY lifted its dividend by 3.2%.

With 22% of the dividends CTY receives being declared in dollars, payouts from portfolio companies "did not fairly reflect the underlying dividend growth" given that the pound appreciated 12.4% against the dollar during the period.

Meanwhile, the company also noted a "marked difference" between the first and second halves of the financial year, with the UK equity market returning 11.3% in the six months to 31 December 2013 but just 1.6% in the six months to 30 June 2014.

"The rise of sterling together with weakness in some overseas economies led to downgrades in analysts' profit expectations for many companies in the first half of 2014," CTY said. It also highlighted increased expectations of a rate rise in the UK.

Looking ahead, chairman Philip Remnant said that some de-rating of stocks is occurring this year after strong share-price gains in 2012 and 2013, ahead of a likely rise in interest rates.

"Given low UK inflation and the weakness in wage increases, any upward move in interest rates is likely to be gradual. As a result, equities are set to remain attractive on a dividend yield and growth basis relative to fixed interest and bank deposits. It is an environment which should play well to City of London's strengths," he said.

The stock was up 0.8% at 379.11p by 13:34 on Thursday.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CTY Market Data

Currency UK Pounds
Share Price 429.00p
Change Today 1.50p
% Change 0.35 %
52 Week High 436.00
52 Week Low 376.00
Volume 413,895
Shares Issued 378.83m
Market Cap £1,625.20m
Beta 0.01
RiskGrade 46

CTY Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
61.59% below the market average61.59% below the market average61.59% below the market average61.59% below the market average61.59% below the market average
50% below the sector average50% below the sector average50% below the sector average50% below the sector average50% below the sector average
Price Trend
38.06% above the market average38.06% above the market average38.06% above the market average38.06% above the market average38.06% above the market average
16.49% above the sector average16.49% above the sector average16.49% above the sector average16.49% above the sector average16.49% above the sector average
Income
12.02% below the market average12.02% below the market average12.02% below the market average12.02% below the market average12.02% below the market average
33.85% above the sector average33.85% above the sector average33.85% above the sector average33.85% above the sector average33.85% above the sector average
Growth
30.19% below the market average30.19% below the market average30.19% below the market average30.19% below the market average30.19% below the market average
15.29% below the sector average15.29% below the sector average15.29% below the sector average15.29% below the sector average15.29% below the sector average

CTY Dividends

  Latest Previous
  Q4 Q3
Ex-Div 25-Jul-19 25-Apr-19
Paid 30-Aug-19 31-May-19
Amount 4.75p 4.75p

Trades for 19-Jul-2019

Time Volume / Share Price
16:35 10,424 @ 429.00p
16:29 3,921 @ 429.00p
16:29 346 @ 428.50p
16:29 114 @ 428.50p
16:29 477 @ 428.50p

CTY Key Personnel

Chair Philip Remnant

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