Interim Management Statement

RNS Number : 8333J

Mercantile Investment Trust(The)PLC

09 December 2008

 



The Mercantile Investment Trust plc

Interim Management Statement

For the three months ended 31st October 2008

This interim management statement relates to the quarter from 31st July 2008 to 31st October 2008 and contains information that covers that period, unless otherwise stated.  

Financial performance - Cumulative Total Return *

	3 months	1 Year	3 Years	5 Years	10 Years
Share price	-25.1%	-44.6%	-6.2%	20.3%	167.2%
Net asset value	-28.9%	-47.5%	-14.0%	20.2%	138.6%
Benchmark	-28.2%	-46.1%	-16.9%	15.3%	65.4%

* total return with net dividends reinvested

Source: JPMAM/Fundamental Data

Financial position 

	As at 31st October 2008	As at 8th December 2008
Total assets	£920.9m	£861.0m
Share price	638.0p	554.0p
Net asset value	702.2p	646.9p
Discount	9.1%	14.4%
Gearing	101.1%	95.8%

Share prices shown are closing bid

Net asset values are shown with debt at fair value

Source: JPMAM/Fundamental Data

Material events 

The Company has reached agreement in principle with its manager, JPMorgan Asset Management (UK) Limited, (who has negotiated recovery from HMRC) on the basis of recovery of past VAT and is in the process of documenting this. The Company's total recovery is expected to be in the region of £8m plus interest, of which £5.8m was included in the Company's net assets as at 31st January 2008.  

Material transactions 

Changes to share capital 

	Issued Ordinary Shares of 25p
As at 31st July 2008	102,610,765
Shares bought back and cancelled	154,797
Shares issued	-
As at 31st October 2008	102,455,968

During the quarter, the Company made market purchases of 154,797 of its own shares for cancellation, representing 0.15% of the shares outstanding at the beginning of the financial year, at an average discount of 13.12%. 

Payment of dividends 

On 1st August 2008 a first quarterly dividend of 6.00p per share was paid to shareholders on the register as at the close of business on 4th July 2008. 

On 31st October 2008 a second quarterly dividend of 6.00p per share was paid to shareholders on the register as at the close of business on 3rd October 2008. 

Portfolio

Top ten holdings as at 31st October 2008

Stock name	Sector	Weight %
IG	Financials	2.7
Home Retail Group	Consumer Services	2.4
Bellway	Consumer Goods	1.5
Go-Ahead	Consumer Services	1.5
Arriva	Consumer Services	1.5
Cazenove	Financials	1.5
DSG International	Consumer Services	1.4
Investec	Financials	1.2
Daily Mail & General Trust	Consumer Services	1.2
National Express	Consumer Services	1.2

Sector analysis as at 31st October 2008

	Portfolio %
Consumer Services	24.5
Financials	20.5
Industrials	16.5
Consumer Goods	8.5
Oil & Gas	5.8
Utilities	2.2
Basic Materials	1.3
Technology	1.2
Telecommunications	0.4
Health Care	0.0
Cash	19.1
Total	100.00

By order of the Board

Juliet Dearlove, for and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

9th December 2008

Registered office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ

Telephone [phone]

This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules. 

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.mercantileit.co.uk.

 

END

 

 

IMSBRBDDBGGGGIC