The Law Debenture Corporation (LWDB) H1 2025 earnings summary

Executive summary

• Achieved a 15.0% NAV total return (debt at par/fair value) and 14.2% share price total return for H1 2025, both outperforming the FTSE All-Share Index by over 5%.

• IPS business delivered robust growth, with net revenue up 7.7% and profit before interest and tax up 7.5% year-over-year.

• Declared a first interim dividend of 8.375p per share, up 4.7% from prior year, with a 3.4% yield based on the closing share price.

• Issued 1.3 million new shares at a premium to NAV, raising £11.6 million in net proceeds.

• Maintained a 46-year record of increasing or maintaining dividends.

Financial highlights

• Net asset value (NAV) at fair value rose to £1,310.0m (983.63p/share) from £1,150.5m (872.34p/share) at 31 Dec 2024.

• Group statutory revenue return per share was 20.15p (H1 2024: 19.00p); capital return per share was 96.91p (H1 2024: 43.78p).

• Total dividend income from the portfolio increased to £22.5m (H1 2024: £19.9m).

• Ongoing charges were 0.54%, well below the industry average of 1.01%.

• Operating profit for H1 2025 was £159.5m, up from £85.9m in H1 2024.

Outlook and guidance

• Management targets mid to high single-digit growth for the IPS business in 2025.

• Board intends to maintain or increase the total 2025 dividend relative to 2024.

• Continued investment in talent and technology to support growth and market share.

• Portfolio managers plan to selectively increase UK equity exposure, citing attractive valuations and strong management disciplines.