The Law Debenture Corporation (LWDB) H2 2024 earnings summary

Executive summary

• Achieved strong absolute and relative performance in 2024, with share price total return of 15.9% and NAV total return of 13.6%, both outperforming the FTSE All-Share Index total return of 9.5%.

• Dividend increased for the 46th consecutive year, up 4.7% to 33.5p per share, yielding 3.8%.

• IPS business delivered 6.2% net revenue growth and 6.4% underlying PBIT growth, funding about a third of dividends over the last decade.

• Ongoing charges ratio remained low at 0.51%, well below the industry average.

• Celebrated 135 years of listing on the London Stock Exchange.

Financial highlights

• Net assets at fair value rose to £1,150.5m (up from £1,048.3m), NAV per share at 872.34p (up from 802.67p).

• Group statutory revenue return per share: 33.48p (2023: 33.43p).

• Capital return per share: 40.51p (2023: 24.47p).

• Share price at year-end: 893p (2023: 801p).

• Gearing at 11% (2023: 13%).

• IPS valuation increased by 83.6% since 2019 to £194.5m.

Outlook and guidance

• Board and management remain confident in medium-term performance due to portfolio diversification and IPS growth potential.

• IPS targeted for mid to high single-digit percentage profit growth.

• UK equities seen as undervalued, with potential for revaluation and capital growth.

• Continued investment in technology, talent, and operational fitness to support growth.