Lowland mulls share split after strong year of performance – Lowland Investment Company (LWI) has published its annual report for 2021, which reviews the 12 months to 30 September 2021. During this period, the trust delivered 51% in NAV terms while its share price soared by 53.3%, significantly ahead of its index return of 27.9%.
Earnings per share rose by 26% while the board has proposed a final dividend of 15.25p. Lowland’s revenue reserves amount to £6.7m as at 30 September, which will not cover the third and final dividend payment, which amount to £8.2m. £1.5m will therefore have to be taken from capital reserves, which amounted to £271.2m as at the end of September.
During the period under the review, the discount fluctuated between 0.5% and 10% and ended the year at 9.1%.
Meanwhile, the board is proposing a resolution at its upcoming AGM to approve sub-dividend each ordinary share of 25p into 10 ordinary shares of 2.5p each. This comes after suggestions in recent years for a share split, given the optically high share price. However, the board is mindful that many shareholders use dividend reinvestment plans, and a lower share price would mean less surplus cash at the point of dividend reinvestment.
LWI : Lowland mulls share split after strong year of performance