FRCL Q4 Results

[tjh290633]

http://www.investegate.co.uk/foreign--3 ... 00086726Y/

2016 was an extraordinary year in terms of political events, stock market returns and sterling weakness. Despite the upheaval, I am delighted to report that your Company had a very strong year, achieving a total shareholder return of 23.7%. Our Net Asset Value ("NAV") total return with debt at market value rose at its strongest annual rate for over a decade, gaining 23.9%. The proposed total dividend for 2016 is 9.85 pence per share, an increase of 2.6% on the year - our forty-sixth consecutive annual rise in dividends.

These results further strengthen our long-term record of delivering growth in both capital and income for our shareholders. Over ten years the share price total return is 141%, equivalent to 9.2% per annum and over twenty years is 443%, which equates to 8.8% per annum.

and

The Directors have proposed a final dividend in respect of the year ended 31 December 2016 of 2.7p per share payable on 2 May 2017 to all shareholders on the register at close of business on 31 March 2017.

TJH

[77ss]

http://www.investegate.co.uk/foreign--38-col-invest--frcl-/rns/final-results/201703070700086726Y/

2016 was an extraordinary year in terms of political events, stock market returns and sterling weakness. Despite the upheaval, I am delighted to report that your Company had a very strong year, achieving a total shareholder return of 23.7%. Our Net Asset Value ("NAV") total return with debt at market value rose at its strongest annual rate for over a decade, gaining 23.9%. The proposed total dividend for 2016 is 9.85 pence per share, an increase of 2.6% on the year - our forty-sixth consecutive annual rise in dividends.

These results further strengthen our long-term record of delivering growth in both capital and income for our shareholders. Over ten years the share price total return is 141%, equivalent to 9.2% per annum and over twenty years is 443%, which equates to 8.8% per annum.

and

The Directors have proposed a final dividend in respect of the year ended 31 December 2016 of 2.7p per share payable on 2 May 2017 to all shareholders on the register at close of business on 31 March 2017.

TJH

Works for me. They may not have matched their benchmark, but a 21% increase in share price over the 2016 calendar year isn't bad.

I note the aspiration of your Board to reach a point where our share price trades at or around the NAV of the Company - the discount at year end was 7.4%. More share-buybacks?

One of my three remaining pre-HYP investments. Bought back in 1994, when I knew even less than I do now!

[tjh290633]

I buy them on behalf of my grandchildren. One of these days I may switch into ITs wholesale.

TJH

[LooseCannon101]

I was slightly disappointed that the total return over the year was about 6% less than that of the benchmark. Hopefully, this situation will improve in the next 10 years which is the time frame preferred by the directors of the trust.

Overall, it is a good result - 8.8% per annum for the last 20 years, and 9.2% per annum for the last 10 years on a total return basis. I like that the directors plan ahead, with the risks being clearly spelt out.

[richfool]

There is some more discussion on FRCL's latest results, including reference to "buybacks":

Its shares stubbornly traded at an average of over 7.5% below NAV, prompting the board to trigger its discount control mechanism and step up share buybacks, which had fallen to a ten-year low, and purchase 12.4 million shares. This did not have an immediate effect as the discount stood at 7.4% at the end of the year and remains at this level.

In the past the company has been a big buyer of its shares, repurchasing £756 million in the ten years to 2015 when it lowered its discount target from 10%. It has previously stated its intention to remove the discount altogether and for the shares to trade at 'par' or at NAV.

http://citywire.co.uk/investment-trust- ... der+Weekly