Statement re Revised Dividend Policy
Montanaro UK Smaller Companies Investment Trust PLC ("the Company")
Revised Dividend Policy
The Board of Montanaro UK Smaller Companies Investment Trust PLC is pleased to announce a significant increase in its future dividend distributions resulting from the Company's revised dividend policy.
The Company intends to pay a regular quarterly dividend:
· Equivalent to 1% of the Company's NAV on the last business day of the preceding financial quarter, being the end of March, June, September and December;
· It is intended that the dividends will be paid in May, August, November and February each year;
· The revised dividend policy will be effective from the financial quarter ending 30 September 2018;
· The first dividend distribution under the revised dividend policy is expected to be declared in October and paid in November;
· The Company's dividends will be funded out of capital reserves to the extent that current year revenue and revenue reserves are insufficient.
Under the revised dividend policy, the Company's dividends would approximate to 4% of the average NAV over the year, a significant increase from the Company's previous annual dividend distributions. The Company will pay quarterly dividends over the financial year.
The Board is aware of the current low interest rate environment and that a growing number of investment trust investors are seeking investment opportunities with a regular and attractive level of income alongside capital growth. The Board believes that the revised dividend policy should therefore broaden the appeal of the Company's shares particularly to retail investors, which would be in the best interests of the Company and existing shareholders as a whole.
There will be no change to the existing investment policy or to the strategy. The Investment Manager will continue to seek high quality companies that have strong growth prospects for the Company's portfolio. The Board will keep the dividend policy and its impact on the demand for the Company's shares under constant review.
Maitland Administration Services Limited
Secretary
Important Information
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service this information is now considered to be in the public domain.
|
Enquiries:
Charles Montanaro
|
Montanaro Asset Management Limited
|
0207 448 8600
|
|
Alex Collins |
Cenkos Securities Plc |
0207 397 1913 |
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
Latest directors dealings
- 12 hours ago ASOS
- 13 hours ago MJ Gleeson
- 13 hours ago Rolls-Royce Holdings
- 13 hours ago Crest Nicholson Holdings
- 14 hours ago Naked Wines