Lindsell Train Investment Trust (LTI) H1 2025 earnings summary

Executive summary

• Net asset value (NAV) per share fell from £1,026.43 to £955.83 over six months to 30 September 2024, with a NAV total return of -1.9% including dividends, underperforming the MSCI World Index's 2.8% return.

• Share price total return was 2.7% as the discount to NAV narrowed slightly but remained high at 19%.

• Lindsell Train Limited (LTL), the largest holding, saw its valuation and FUM decline, negatively impacting overall performance.

• Portfolio remains concentrated, with 56% of NAV in global quoted equities and 31% in LTL.

• Dividend policy aims to maintain payouts, but declining LTL dividends may require use of revenue reserves in 2025.

Financial highlights

• NAV per share at 30 September 2024: £955.83, down from £1,026.43 at 31 March 2024.

• Net assets: £191.2m at 30 September 2024, down from £205.3m at 31 March 2024.

• Total loss after tax for the period: £3.8m (vs. £7.3m loss in prior year period).

• Revenue return per share: £24.84; capital loss per share: £43.94.

• Dividend of £51.50 per share paid in September 2024.

Outlook and guidance

• Board expects LTL's FUM to continue declining in the short term, impacting LTL's valuation and the Company's NAV.

• Investment Manager remains positive on long-term prospects for quoted investments and expects improved relative performance.

• Board is confident in LTL's ability to recover and is focused on supporting its performance.