The Law Debenture Corporation (LWDB) H2 2025 earnings summary

Executive summary

• Achieved strong performance in 2025 with NAV total return (with debt and IPS at fair value) of 28.4% and share price total return of 22.2%, both outperforming the FTSE All-Share Index and sector peers.

• Dividend increased by 6.0% to 35.5p per share, marking 47 consecutive years of maintained or increased dividends, fully covered by earnings.

• IPS business contributed 16% of NAV and funded about a third of dividends over the last decade, with a 6.4% CAGR in underlying PBIT over five years.

• Issued 1.3 million new shares, raising £11.6m to support ongoing investment; no share buybacks in 2025.

Financial highlights

• Net assets increased to £1,440.4m (up 25.2% from 2024); NAV per share at fair value rose 24% to 1,081.49p.

• Statutory revenue profit before tax up 13.3% year-over-year; statutory revenue EPS up 11.3%.

• Dividend income from the investment portfolio rose 16.1% to £40.3m.

• Ongoing charges ratio remained low at 0.56%.

• Gearing at 12% (2024: 11%).

Outlook and guidance

• UK equities remain attractively valued; managers expect continued M&A interest and potential for further re-rating.

• IPS expected to deliver mid to high single digit growth; continued investment in people, systems, and technology.

• Group remains well-positioned for long-term capital growth and steadily increasing income.