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The Mercantile Investment Trust (MRC)

Closed-end funds and OEICs
monabri
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The Mercantile Investment Trust (MRC)

#442464

Postby monabri » September 15th, 2021, 12:56 pm

SECOND QUARTERLY DIVIDEND


https://www.investegate.co.uk/mercantil ... 00087741L/

"The Directors have declared that a second quarterly interim dividend for the year ending 31st January 2022 of 1.35 pence per share will be paid on 1st November 2021 to shareholders on the register as at the close of business on 24th September 2021. The ex-dividend date will be 23rd September 2021."

ReformedCharacter
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Re: The Mercantile Investment Trust (MRC)

#474534

Postby ReformedCharacter » January 19th, 2022, 6:24 pm

I'm tempted to buy some MRC, currently at a 8.3% discount and yielding 2.6%. My portfolio is underexposed to medium and smaller UK companies. Any comments appreciated.

RC

richfool
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Re: The Mercantile Investment Trust (MRC)

#536926

Postby richfool » October 13th, 2022, 9:03 am

The Mercantile Investment Trust plc
Half Year Report & Accounts for the six months ended 31st July 2022

CHAIRMAN'S STATEMENT

Performance

The past six months have spanned a number of extraordinary geopolitical and economic developments which have been especially challenging for global and UK equity markets. At the beginning of the period, Russia's invasion of Ukraine cast the shadow of war over the European continent for the first time in seventy-five years. The invasion generated supply concerns in global energy and commodity markets, putting upward pressure on prices. Inflation, which was already at multi-decade highs in the US, Europe, and the UK, due to tight labour markets and pandemic-induced supply bottlenecks, climbed even higher. Central banks, including the Bank of England, were forced to make successive interest rate rises and have signalled further tightening ahead. Fears about inflation quickly led to fears of recession.

In the UK, the government responded to the higher costs with cash support for households, but as energy bills continued to rise, public pressure mounted for further assistance to individuals and businesses and labour unions threatened industrial action to protect their members' real incomes.

Like their global counterparts, UK equities weakened in the face of so many concerns. This environment favoured larger, defensive UK stocks and the mid and smaller cap stocks in which the Company invests lagged, even those businesses we own which typically grow faster and generate greater long term returns than larger, less innovative companies. These are the companies your Investment Managers seek - resilient, well-managed, world class businesses, capable of surviving near-term challenges and volatility and benefiting from long-term structural growth.

Against this backdrop, for the six months to 31st July 2022 the Company produced a net asset total return, based on debt being valued at fair of -11.5%. With the debt valued at par, the return was -13.2%. This compares with the total return of -7.8% from our benchmark index. Over the six months, the discount of the share price to net asset value (with debt being valued at fair value) widened, from 9.7% to 12.7%, resulting in a total return to shareholders for the period of -14.2%. To place these results within the longer-term context in which the Company operates, this performance follows a year of very strong absolute returns during the financial year ended 31st January 2022 and outperformance over three and five years and the longer term. The Company's average annualised return over the ten years ended 31st July 2022 was 10.4% on a net asset total return fair value basis and 10.8% in share price terms, both returns outpacing the benchmark return of 8.9%.

The Company's long term track record of high absolute returns and outperformance of the broader small and medium cap market attests to your Investment Managers' skill at identifying these future market leaders.

Returns and dividends

The Company's revenue account continues to improve, having been severely impacted by the consequences of COVID-19 in 2020. Although we are yet to witness a full recovery, the revenue return in the first half of the Company's current financial year increased to 3.74 pence per share, up from 2.89 pence per share for the corresponding period last year, an increase of just under 30%.

A first quarterly interim dividend of 1.35 pence was paid on 1st August 2022 and a second quarterly interim dividend of 1.35 pence per share has been declared by the Board, payable on 1st November 2022 to shareholders on the register at close of business on 30th September 2022. This brings the total dividend for the year to date to 2.70 pence (2021: 2.70 pence). The Board currently intends to pay a third quarterly interim dividend of 1.35 pence in early February 2023.

The level of the fourth quarterly interim dividend will depend on income received by the Company for the full financial year. As has been stated previously and in line with the Company's investment policy, the Board recognises shareholders' desire for a growing dividend whilst recognising the benefits of retaining a healthy revenue reserve for the future.

https://www.investegate.co.uk/mercantil ... 00027100C/

scotia
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Re: The Mercantile Investment Trust (MRC)

#537003

Postby scotia » October 13th, 2022, 2:25 pm

richfool wrote:The Mercantile Investment Trust plc
Half Year Report & Accounts for the six months ended 31st July 2022

The total return over 5 years (until the present) is minus 7.6% - which is similar to a FTSE 250 Index fund, but its volatility has been significantly larger than the index. If you think the FTSE 250 is about to recover strongly from its recent large fall, then it may be a good investment. I'll wait and see.

idpickering
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Re: The Mercantile Investment Trust (MRC)

#580543

Postby idpickering » April 4th, 2023, 7:17 am

THE MERCANTILE INVESTMENT TRUST PLC - FINAL RESULTS FOR THE YEAR ENDED 31ST JANUARY 2023

https://www.investegate.co.uk/mercantil ... 00042326V/

Ian (No holding).


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