Witan reports solid first-half return ahead of proposed Alliance merger

13th Aug 2024 12:00

(Sharecast News) - Witan Investment Trust reported a strong first-half financial performance on Tuesday, with a significant increase in net asset value alongside its proposed strategic combination with Alliance Trust.

The FTSE 250 company said the merger was expected to create a leading multi-manager investment trust with around £5bn in net assets, positioning it as a potential member of the FTSE 100.

It added that the move was anticipated to lower costs and leverage a proven investment strategy.

For the six months ended 30 June, Witan's net asset value total return was 11%, closely tracking the 11.7% return from its composite global benchmark.

The company's discount narrowed during the period, leading to a shareholder total return of 14.3%.

Additionally, Witan repurchased 4% of its shares into treasury at an average discount of 8.9%, further enhancing shareholder value.

Witan declared a second interim dividend of 1.75p per share, to be paid in September.

Should shareholders approve the proposed merger with Alliance Trust, Witan shareholders could expect total dividends for the year to be at least 6.28p per share, representing a 4% increase from the 6.04p per share distributed in 2023.

At 1139 BST, shares in Witan Investment Trust were down 0.08% at 263.78p.

Reporting by Josh White for Sharecast.com.