Investment reports

Temple Bar Investment reports stellar performance but warns of ‘economic uncertainties’

UK-based Temple Bar Investment Trust PLC reported positive results on Friday as it released its half-year statement.

Net asset value (NAV) returned 19.3% versus the FTSE All-Share benchmark of 11.1%. The investment firm said it performed well during the half-year and the share prices of Royal Mail Group, Aviva, NatWest Group and BP performed strongly.

Growth and decline

“Royal Mail Group continued to benefit from a lockdown-induced increase in parcel volumes and while some element of this growth is likely to prove temporary, we believe there is still significant unrealized potential in This is confirmed by the fact that if management is successful in meeting its medium-term objectives, there is potential for earnings to increase significantly from current levels,” said Arthur Copple, Chairman of Temple Bar Investment. .

The group, however, said Capita’s share price continues to struggle, although the company is on track to increase revenue in 2021.

“Our view is that the (Capita) stock is very undervalued, although we recognize that stocks are unlikely to do well until there is more tangible evidence that the turnaround is successful,” Copple added.

Geopolitical tension and dividends

Rising geopolitical tensions in Hong Kong prevented Standard Chartered from “participating in the broader market rally”.

The board said it was on track to pay its dividend and has two interim dividends of 9.75p each. The company has pledged to pay a total dividend of at least 39p for the full year.

Economic uncertainty

The company warned of economic uncertainty due to inflationary pressures and said it would focus its efforts on identifying companies that are sustainable and “fundamentally sound but modestly valued” because they offer the highest investment returns. attractive.

“Obviously, in the current circumstances, it is difficult to predict the direction of the markets, but your board and your investment manager believe that there is every reason to be cautiously optimistic about the second half of your company’s fiscal year,” Copple said.

Temple’s share price fell 0.19% early in the morning to £10.44.

Trade Temple Bar Investment Trust PLC – TMPL

Read more: UK inflation jumps to 2.5%, its highest level in three years, in June

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