Scottish Mortgage Investment Trust posts annual earnings growth

Scottish Mortgage Investment Trust reported strong annual earnings results boosted by non-recurring dividends most notably from its holding in Polish copper miner KGHM.

Scottish Mortgage Investment Trust reported strong annual earnings results boosted by non-recurring dividends most notably from its holding in Polish copper miner KGHM.

Earnings per share totalled 15.59p for the year to March 31st, compared to 13.07p in 2012.

However, the group expects the following year's earnings to be lower as the company said it has "benefitted from the special dividends and accelerated timing of dividend receipts".

The group proposed a final dividend of 7.3p per share, bringing the total for the year to 14p which represents a 7.7% rise.

"Although the primary focus of this trust is to provide long term capital growth, it is the board's intention to provide progressive and real dividend growth; the existence of reserves of 26p per share would allow us, if necessary, to smooth dividend payments from year to year should the need arise," said Chairman, John Scott.

"Longer term, the outlook for dividend increases remains healthy."

The firm's share price reached a new high of 862.5p in early March, before falling back to 822.5p at the end of the same month.

Over the course of the year, the share price rose by 16.2% and the net asset value (NAV) per share increased by 11.6%.

Despite the impact of the 2008 financial crisis, the group has achieved a total return over the past five years of a 53% increase in share price and 45% rise in NAV.

In the year ahead, the company expects the European debt crisis to continue to pose a threat to the performance of its portfolio. With that in mind, Scottish Mortgage said it will carefully select investments that generate returns.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Investors are shunning UK stocks – but they might regret that in a year’s time
UK stockmarkets

Investors are shunning UK stocks – but they might regret that in a year’s time

There are a number of reasons why investors aren't buying UK stocks, says John Stepek. But they may want to rethink that strategy.
29 Sep 2020
Are we really in a stockmarket bubble?
US stockmarkets

Are we really in a stockmarket bubble?

The rise of “cash shell” companies, sky-high valuations – everything seems to point to a stockmarket bubble. But all may not quite be as it appears, s…
28 Sep 2020
Two commodities that could lie at the heart of the next resources bubble
Energy

Two commodities that could lie at the heart of the next resources bubble

Commodities tend to move in cycles. And if you can identify early on which ones are about to surge in demand, you can profit handsomely. Dominic Frisb…
30 Sep 2020