Lindsell Train Investment Trust (LTI) H2 2024 earnings summary

Executive summary

• NAV per share at 31 March 2024 was £1,026.43, down from £1,056.95, but with dividends, NAV total return was +2.1% year-over-year.

• Share price fell sharply to £801.00, a -19.8% total return, as the discount to NAV widened from 0.4% to 22.0%.

• Benchmark MSCI World Index returned +22.5%, outperforming both NAV and share price returns.

• Dividend of £51.50 per share maintained; no special dividend due to lack of performance fees.

• LTL (unlisted holding, 33.6% of NAV) returned -7.1%, significantly detracting from performance.

Financial highlights

• Net revenue: £10.2m (2023: £12.2m); gross income: £12.0m (2023: £14.1m).

• Earnings per share: £20.97 (2023: loss of £3.85).

• Ongoing charges reduced to 0.8% (2023: 0.9%).

• Dividend yield increased to 6.4% (2023: 4.9%).

• Shareholders’ funds: £205.3m, down 2.9% year-over-year.

Outlook and guidance

• Board expects strategy and management to remain unchanged.

• Dividend sustainability depends on LTL’s performance, FUM stabilization, and investment compounding.

• Board will require evidence of improvement before using more reserves to maintain dividends.

• Long-term viability confirmed for at least five years, with 66.4% of assets liquid and stress tests showing resilience.