City Natural Resources has published results for the year ended 30 June 2016. At 30 June 2016 your Company’s net asset value stood at 127.4 pence per share, giving a net asset value total return for the year of 10.7 per cent. The benchmark index returned 14.2 per cent. The Company’s ordinary share price total return of 10.8 per cent for the year was virtually identical to its net asset value total return, the discount at which the Company’s shares trade opening and closing the year at just over 22 per cent. This year’s fourth interim dividend of 3.02 pence per share brought the total dividend for the year to 5.60 pence, the same level as was paid last year. Earnings per share of 5.08 pence means that the dividend for the year was uncovered, but the Board has no qualms about utilizing revenue reserves to maintain current dividend levels, as it has done this year, so long as longer term income generation is deemed safe. The revenue reserve, which stands at 6.4 pence per share after the payment of the fourth interim dividend, has been built up against just this sort of eventuality.
CYN : City Natural Resources lags benchmark