Law Debenture Corp PLC Dividend Declaration (0895Z)
September 16 2020 - 2:00AM
UK Regulatory
TIDMLWDB
RNS Number : 0895Z
Law Debenture Corp PLC
16 September 2020
The Law Debenture Corporation p.l.c.
Second Interim Dividend Announcement - Law Debenture remains
committed to at least maintaining 2019 full year dividend level of
26.0p
-- Declaring a second interim dividend of 6.5 pence per ordinary share payable in October 2020
-- Further interim dividend of 6.5 pence per ordinary share expected in January 2021
-- It remains the Board's current intention for the full year
2020 dividend to be at least equal to 2019 dividend of 26.0 pence
per share
-- Dividend Yield is currently 5.12%
Whilst the Covid-19 pandemic has undoubtedly placed significant
stress on the global economy, it has also highlighted the unique
advantage of the Law Debenture structure. We approached 2020 with a
professional services business that has funded 35% of dividends for
the investment trust over the preceding 10 years(1) and, as
demonstrated by our H1 results, our Independent Professional
Services business continues to show its resilience despite the
challenging market conditions.
We also entered 2020 with the strongest reserves position(2) of
the Investment Trusts in the UK Equity Income sector(3) with group
retained earnings of GBP62.5m(4) . The combination of this
diversification of income and the strength of our reserves provides
us with a genuine competitive advantage over other equity income
trusts when forming our dividend policy.
As a result of this, it remains our intention to pay a dividend
for the full year 2020 which is at least equal to the 2019 dividend
of 26.0 pence per ordinary share. We have listened to our
shareholders who are seeking regular, reliable income and recently
transitioned to a quarterly dividend cycle. This comes at a time
when the recipients of those dividends may be increasingly reliant
on that income, particularly in light of the large number of quoted
companies who have announced cuts to their dividends in order to
protect the long term future of their businesses.
With this in mind, we have declared a second interim dividend of
6.5 pence per ordinary share in respect of the year ending 31
December 2020. This dividend will be paid on 28 October 2020 to
shareholders registered at the close of business on 25 September
2020. The Corporation's shares will go ex-dividend on 24 September
2020. Based on the Corporation's current share price, that implies
a dividend yield of 5.12%.(5)
We intend to pay a further interim dividend of 6.5 pence per
ordinary share in January 2021. Shareholders will be asked to vote
on a final dividend to be paid in April 2021 at the Corporations
2021 AGM. It continues to be the Board's current intention to
recommend the final dividend payment be at least 6.5 pence per
share.
Law Debenture Corporate Services Limited
Corporate Secretary
15 September 2020
Contact:
Tulchan Communications
David Allchurch
Lawdebenture@tulchangroup.com
+44 (0)777 193 7173
The Law Debenture Corporation p.l.c. is registered in England at
Fifth Floor, 100 Wood Street, London EC2V 7EX, company registration
number 30397. The Law Debenture Corporation p.l.c. LEI number -
2138006E39QX7XV6PP21
(1) Calculated on an annualised basis on dividend payments in
respect of accounting years between 1 January 2010 and 31 December
2019.
(2) Investec Securities analysis from 30 March 2020, based on
Group Revenue Return, including professional services fees.
(3) AIC UK Equity Income Sector.
(4) Group retained earnings were GBP62.5m as at 1 January
2020.
(5) Based on closing share price on 15 September 2020 of 508.0
pence per share and a dividend of 26.0 pence per share.
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END
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