Law Debenture Corp PLC Edison review on The Law Debenture Corporation

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Law Debenture Corp PLC

27 February 2020

London, UK, 27 February 2020

Edison issues review on The Law Debenture Corporation (LWDB)

The Law Debenture Corporation (LWDB) saw a NAV total return of 17.9% (cum-fair) in FY19, with its share price total return of 24.5% comfortably outstripping the broad UK stock market. As well as a c 25% increase in portfolio income, LWDB's independent professional services (IPS) businesses saw another year of good growth, providing important support for a step change in the annual dividend payment (+37.6%, with the final dividend up 50%, and moving to quarterly dividends from FY20). Portfolio managers James Henderson and Laura Foll continue to find attractive investment opportunities, particularly among unloved UK domestic stocks, while CEO Denis Jackson sees growth potential across the IPS businesses as a result of increased market focus on environmental, social and governance (ESG) issues.

At 26 February 2020, LWDB's shares traded at a 15.7% discount to cum-fair NAV. This is wider than both short- and longer-term averages, and arguably presents investors with an opportunity, given the discount was below 5% as recently as December 2019. Based on the higher FY19 dividends, the shares now yield c 4.5%.

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