RCP
QD Newswire - FY results analysis from QuotedData
3 March 2025
Firing on all cylinders
·
RIT Capital Partners (RCP) has reported annual
results for the year ended 31 December 2024 this morning. It posted
strong numbers, with all three investment pillars - quoted
equities, private investments, and uncorrelated strategies -
delivering positive returns.
·
NAV was up 7.7% over the year to 2,614p per share.
Including dividends, the NAV total return was 9.4%. This compares
to returns on its reference performance benchmarks - CPI +3% and
the MSCI ACWI (50% sterling) - of 5.5% and 20.1%
respectively.
·
Strong operational performance has led the company
to propose a 10.3% dividend uplift for 2025 to 43.0p per share,
which would be the twelfth successive year of dividend
growth.
·
Share price total return was 7.9%, reflecting the
trust's discount widening by 1.6 percentage points to 24.0%. Having
bought back £80m shares in the year, the board has signalled its
confidence in the NAV and continues to allocate capital to buybacks
in 2025.
QuotedData's view
RIT Capital Partners' (RCP's) focus
on capital preservation through a flexible and diversified
portfolio seems the ideal tonic for the current uncertain
macroeconomic and geopolitical backdrop. Equity markets have been
driven by a narrow group of mega-cap technology stocks, but risk
lurks in the form of high valuations and an AI war with (reportedly
cheaper) Chinese counterparts.
The importance of RCP's selective
approach and focus on undervalued small- and mid-cap stocks has
come to the fore here and could continue to pay off handsomely
going forward, with an expected broadening of technology 'winners'
and a portfolio aligned with other global megatrends it has
identified, such as medical advances.
Having bounced back in 2024 from a
disappointing couple of years, including the trust's first NAV
decline in more than a decade in 2022, it was a surprise to see the
company's discount widen during the year to 24.0%, and march out
further still in the first two months of 2025. In our view, this
presents an opportunity for investors to buy shares in the company
at an extremely attractive entry price.
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produce this note on RIT Capital Partners Plc, and it is for
information purposes only. It is not intended to encourage the
reader to deal in the security or securities mentioned in this
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