Scottish Mortgage Inv Trust (SMT)

Sector:

Investment Firms

Index:

FTSE 100

899.00p
   
  • Change Today:
    -2.00p
  • 52 Week High: 908.40
  • 52 Week Low: 637.60
  • Currency: UK Pounds
  • Shares Issued: 1,337.31m
  • Volume: 663,688
  • Market Cap: £12,022m
  • RiskGrade: 143

Scottish Mortgage Investment Trust to spend up to £1bn on buybacks

By Josh White

Date: Friday 15 Mar 2024

LONDON (ShareCast) - (Sharecast News) - Scottish Mortgage Investment Trust announced on Friday that it had made available at least £1bn for share buybacks over the next two years, following strong operational results from its public and private portfolio.
The FTSE 100 entity said the decision came as its portfolio continued to deliver robust performance, with free cash flow from portfolio companies more than doubling over the last year.

Besides its operational success, the board said it had taken steps to strengthen the company's balance sheet in recent months.

Debt reduction had been a key focus, with invested borrowings now standing at 13% of net assets, at an average interest rate cost of 3.2%.

Scottish Mortgage still continued to provide growth capital, particularly to private companies, which currently represented 26.2% of the portfolio.

Share buybacks had been identified as a strategic tool to address the discount to net asset value and to provide shareholders with significant benefits, the company explained.

It said buybacks would improve liquidity in its shares, and would also immediately enhance the net asset value per share and demonstrate confidence in the underlying valuation of the portfolio.

Over the last two years, Scottish Mortgage had repurchased about £353m of its shares, and with the newly-allocated £1bn, it aimed to further enhance shareholder value.

"We remain committed to using share repurchases strategically to enhance liquidity in our shares and to seek to facilitate trading around net asset value," said chair Justin Dowley.

"Our company has a strong balance sheet, and its portfolio companies are delivering strong operational results.

"We are acting upon this investment opportunity by materially increasing the capital available to our liquidity policy over the next two years with the aim of maximising returns for our shareholders."

At 0846 GMT, shares in Scottish Mortgage Investment Trust were up 1.52% at 792.88p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

SMT Market Data

Currency UK Pounds
Share Price 899.00p
Change Today -2.00p
% Change -0.22 %
52 Week High 908.40
52 Week Low 637.60
Volume 663,688
Shares Issued 1,337.31m
Market Cap £12,022m
RiskGrade 143

SMT Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
6.47% above the market average6.47% above the market average6.47% above the market average6.47% above the market average6.47% above the market average
15.82% below the sector average15.82% below the sector average15.82% below the sector average15.82% below the sector average15.82% below the sector average
Price Trend
84.37% above the market average84.37% above the market average84.37% above the market average84.37% above the market average84.37% above the market average
95.77% above the sector average95.77% above the sector average95.77% above the sector average95.77% above the sector average95.77% above the sector average
Income
88.18% below the market average88.18% below the market average88.18% below the market average88.18% below the market average88.18% below the market average
91.03% below the sector average91.03% below the sector average91.03% below the sector average91.03% below the sector average91.03% below the sector average
Growth
40.81% above the market average40.81% above the market average40.81% above the market average40.81% above the market average40.81% above the market average
35.50% above the sector average35.50% above the sector average35.50% above the sector average35.50% above the sector average35.50% above the sector average

SMT Dividends

  Latest Previous
  Final Interim
Ex-Div 13-Jun-24 23-Nov-23
Paid 11-Jul-24 15-Dec-23
Amount 2.64p 1.60p

Trades for 28-May-2024

Time Volume / Share Price
11:13 110 @ 899.04p
11:13 1,602 @ 898.61p
11:12 367 @ 899.00p
11:12 312 @ 898.40p
11:12 182 @ 898.40p

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