Investors

Key performance indicators

Data as at 31 March 2018

Total return
% of opening Net Asset Value

Target
To provide shareholders with a total return of 8% to 10% per annum, to be achieved over the medium term.

Outcome for the year
Total return of 15.4% for the year to 31 March 2019.

Performance against target
Continued outperformance.

Rationale, definition and performance over the year

Rationale and definition
  • Total return is how we measure the overall financial performance of the Company
  • Total return comprises the investment return from the portfolio and income from any cash balances, net of management and performance fees and operating and finance costs. It also includes movements in the fair value of derivatives and taxes
  • Total return, measured as a percentage, is calculated against the opening NAV, net of the final dividend for the previous year, and adjusted (on a time weighted average basis) to take into account any equity issued and capital returned in the year
Performance over the year
  • Total return of £258 million in the year, or 15.4% on opening NAV
  • The portfolio performed well overall with strong performance in particular from TCR, WIG, Attero and Valorem
  • The outperformance in total return was driven mainly by the sale of the Company’s holding in XLT
  • The hedging programme continues to reduce the volatility in NAV from exchange rates
  • Costs were managed in line with expectations

  

Annual distribution
pence per share

Target
Progressive dividend per share policy.

Targeting a full year dividend for FY19 of 8.65 pence per share

Outcome for the year
Total dividend of 8.65 pence per share paid and proposed.

Performance against target
Target met.

Rationale, definition and performance over the year

Rationale and definition
  • This measure reflects the dividends distributed to shareholders each year
  • The Company’s business model is to generate returns from portfolio income and capital returns (through value growth and realised capital profits). Income, other portfolio company cash distributions and realised capital profits generated are used to meet the operational costs of the Company and distributions to shareholders
  • The dividend is measured on a pence per share basis, and is targeted to be progressive
Performance over the year
  • Proposed total dividend of 8.65 pence per share, or £70 million, is in line with the target set at the beginning of the year
  • Income generated from the portfolio and cash deposits, including non-income cash distributions and other income from portfolio companies, totalled£202 million for the year. Operational costs and finance costs used to assess dividend coverage totalled £37 million in the year. The dividend was fully covered for the year
  • Setting a total dividend target for FY20 of 9.20 pence per share, 6.4% higher than for FY19

   

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