Annual Financial Report for the Year Ended 31 December 2024
- During the period the Company delivered a NAV total return of +8.1% and a share price total return of +4.5%, this compares to a +3.5% rise in the Retail Price Index and a +19.8% increase in the FTSE All World Index.
- North America delivered the strongest regional returns with a 28% overall contribution while Latin America delivered the poorest absolute returns during the year.
- The strongest contributor to performance by far was Broadcom Inc., rising 114% and contributing 2.75% to NAV performance.
- Other major contributors to performance included TSMC, Hon Hai Precision Industry Inc. and Philip Morris International Inc.
- The most significant detractors during the period were Globalwafers Co., Wal-Mart de Mexico, Samsung Electronics, Grupo Aeroportuario Del Sureste and Vale.
- The Company is pleased to declare a final dividend for the year of 4.3p per share, which represents an annual distribution of 11.8p per share, an increase of 2.6% over the previous financial year- the Company’s 20th consecutive year of dividend growth.
Virginia Holmes, the Company’s Chair, commented:
“We are pleased to report a period of strong absolute returns for our shareholders, albeit we note this has lagged the very strong growth in the FTSE All World Index. Today also marks the Company’s 20th consecutive annual dividend increase which if approved by shareholders would grant the Company AIC Dividend Hero status.
Our outlook for global equities remains cautious but we are cognisant of pockets of extremely high valuations for example in North American tech that we consider vulnerable and we remain the only global equity income trust portfolio with no exposure to the ‘Magnificent 7’. Our focus remains on quality companies with strong balance sheets and high cash generation to support their dividend yields selected through an unconstrained and globally diversified approach that reduces risks and capital volatility for our shareholders.“
Performance Highlights
| Net asset value total returnAB – 2024 | +8.1% | Share price total returnAB – 2024 | +4.5% |
| 2023 | +8.6% | 2023 | +1.1% |
| Retail Price IndexB – 2024 | 3.5% | Reference Index total returnBC – 2024 | +19.8% |
| 2023 | 5.2% | 2023 | +15.7% |
| Dividends per shareBE – 2024 | 11.8p | Revenue return per shareB – 2024 | 11.6p |
| 2023 | 11.5p | 2023 | 12.1p |
| Dividend yieldAD – 2024 | 4.6% | Net gearingAD – 2024 | 6.1% |
| 2023 | 4.5% | 2023 | 8.0% |
| Ongoing charges ratioAD – 2024 | 0.52% | Discount to net asset valueAD – 2024 | -7.5% |
| 2023 | 0.53% | 2023 | -4.0% |
A Alternative Performance Measure (see definition below).
B For the year to 31 December.
C Reference Index is FTSE All World TR Index.
D As at 31 December.E Dividends declared for the year to which they relate and assuming shareholder approval of final dividend.
Financial Calendar
| Payment dates of future quarterly dividends | 19 May 2025 15 August 2025 18 November 2025 17 February 2026 |
| Financial year end | 31 December |
| Online Shareholder Presentation | Monday 31 March at 11.00 a.m. |
| Annual General Meeting (London) | Thursday 24 April 2025 at 12:30 p.m. |
Dividends
| Rate | Ex-dividend date | Record date | Payment date | |
| 1st interim | 2.5p | 4 July 2024 | 5 July 2024 | 16 August 2024 |
| 2nd interim | 2.5p | 3 October 2024 | 4 October 2024 | 18 November 2024 |
| 3rd interim | 2.5p | 2 January 2025 | 3 January 2025 | 17 February 2025 |
| Proposed final | 4.3p | 3 April 2025 | 4 April 2025 | 19 May 2025 |
| Total dividends | 11.8p |
Financial Highlights
| 31 December 2024 | 31 December 2023 | % change | |
| Total assetsA | £1,788.8m | £1,808.8m | -1.1 |
| Net assets | £1,678.8m | £1,668.9m | +0.6 |
| Market capitalisation | £1,553.1m | £1,601.8m | -3.0 |
| Net Asset Value per Ordinary shareB | 278.4p | 268.8p | +3.6 |
| Share price per Ordinary share (mid market)B | 257.5p | 258.0p | -0.2 |
| Discount to Net Asset Value per Ordinary shareC | -7.5% | -4.0% | |
| Net gearingC | 6.1% | 8.0% | |
| Revenue return per share | 11.6p | 12.1p | -4.1 |
| Dividends per shareD | 11.8p | 11.5p | +2.6 |
| Dividend cover (including proposed final dividend)C | 0.98x | 1.05x | |
| Dividend yieldC | 4.6% | 4.5% | |
| Revenue reservesE | £74.2m | £75.1m | |
| Ongoing charges ratioC | 0.52% | 0.53% |
A S The total assets less current liabilities as shown on the Balance Sheet with the addition of prior charges (comprising bank loans and loan notes).
B Capital values.
C Considered to be an Alternative Performance Measure.
D The figure for dividends per share reflects the years to which their declaration relates (see note 8) and assuming approval of the final dividend of 4.3p (2023 – final dividend of 4.3p).
E The revenue reserve figure does not take account of the third interim and final dividends amounting to £15,078,000 and £25,590,000 respectively (2023 – third interim dividend of £14,890,000 and final dividend of £26,592,000).