The Monks Investment Trust PLC (MNKS)
Legal Entity Identifier: 213800MRI1JTUKG5AF64
Results for the six months to 31 October 2024
The following is the unaudited Interim Financial Report for the six months to 31 October 2024 which was approved by the Board on 3 December 2024.
Chairman’s statement
Performance
During the first half of the financial year, the Company produced a net asset value (NAV*) total return of +6.3% compared to +8.1% for the comparative index (FTSE World in sterling). The share price total return was +3.1%. Commentary on performance and portfolio positioning is contained in the Managers’ Report.
Capital allocation
The Board has continued to be active in buying back shares at a discount to NAV. The Company bought back approximately 15 million of its own shares over the six months to 31 October 2024, at a cost of £176 million and an average discount of 9.1%. Since the Company commenced its buyback programme in January 2022 it has bought back 54 million shares at a total cost of £582 million and an average discount of 8.6%. This represents 22.9% of the share capital outstanding at the end of December 2021.
Gearing
An advantage of the investment trust structure is that the Company can deploy borrowing to enhance returns in the long term. The Company has a mixture of long term, structural debt and shorter term, more flexible debt. The Company’s revolving credit facility of £150 million with National Australia Bank Limited expired at the end of November 2024 and has been replaced by a £100 million revolving credit facility with The Royal Bank of Scotland International. £50 million is drawn under this facility. At the period end, net gearing was 7.3% and the weighted average interest rate across all borrowings was 3.6%.
The Board
Jeremy Tigue retired from the Board at the AGM in September 2024, and Claire Boyle has succeeded him as Audit Committee Chair. As I announced at the AGM, it is my intention to step down at or before the Company’s 2025 AGM. The Board has recruited three new Directors over the four years since I became its Chairman and the Board’s succession plan will be announced in due course.
Outlook
Monks has a well-diversified portfolio of growth stocks. The Board believes that the Company’s diversified approach offers investors exposure to a wide range of growth opportunities that are likely to drive returns in the years ahead.
Karl Sternberg
Chairman