The Lindsell Train Investment Trust reports annual results
Why we think this is neutral
The Lindsell Train Investment Trust has reported its annual financial results, which show a mixed performance. While the company's share price total return outperformed the benchmark, its net asset value total return was negative, primarily due to the underperformance of its investment in Lindsell Train Limited (LTL). LTL's funds under management have declined, leading to a reduction in the valuation of the company's investment. The company has also reduced its dividend. Overall, the results indicate some challenges for the company, but do not meet the criteria for a 'VERY_GOOD' rating.
Key Points
- Net asset value total return of -2.2%, underperforming benchmark
- 16% negative total return from investment in Lindsell Train Limited (LTL)
- LTL's funds under management declined from £15.2bn to £11.4bn
- Share price total return of +9.0%, outperforming benchmark
- Final dividend reduced by 18.4% to £42.00 per share
- Proposed share split to improve liquidity
Summary
The Lindsell Train Investment Trust has reported its annual financial results for the year ended 31 March 2025. The company's net asset value total return was -2.2%, underperforming the MSCI World Index benchmark which returned +4.8%. This was primarily due to the 16% negative total return from the company's investment in Lindsell Train Limited (LTL), which accounts for 26.1% of net assets. LTL's funds under management have declined from £15.2bn to £11.4bn, leading to a reduction in the valuation of the company's investment. The company's share price total return was +9.0%, outperforming the benchmark. The company has also proposed a share split to improve liquidity. The final dividend has been reduced by 18.4% to £42.00 per share.