REG - Witan Inv Tst PLC - Dividend Declaration

Witan Investment TrustAnnouncement

09/02/2021 15:55

RNS Number : 5173O
  
Witan Investment Trust PLC
  
09 February 2021
  
 

9 February 2021
 
WITAN INVESTMENT TRUST PLC
 
Payment of a Fourth Interim Dividend
 
 
Witan Investment Trust plc hereby announces that a fourth interim dividend of 1.43p per ordinary share of 5p, in respect of the year ended 31 December 2020, will be paid on Wednesday 31 March 2021 to shareholders registered at the close of business on Friday 26 February 2021 (the ex-dividend date is Thursday 25 February).  Taken together with the three interim dividends of 1.34p each paid in June, September and December 2020, this represents a total dividend payment of 5.45p in respect of 2020 (2019: 5.35p).  The increase of 1.9% is ahead of the 0.6% rise in the consumer price index in the year to December 2020. 
 
Although this is a lower rate of increase than the 9.6% annual rate enjoyed by Witan shareholders over the preceding 10 years, it represents the 46th consecutive increase in the annual dividend per share.  The unprecedented cuts in portfolio dividends as a result of the pandemic have reduced our revenue earnings for 2020 below those of the previous year's dividend.  However, the Company recognises the importance for many of its shareholders of a reliable and growing income and is accordingly making use of approximately £19m of its retained earnings from earlier years ("revenue reserves") to support growth in the dividend for 2020.  The revenue reserves were £71.1m at the end of 2019, after allowing for the payment of the dividends for that year. Following this payment, the remaining revenue reserves will amount to over one year's dividend payments (subject to formal confirmation in Witan's 2020 results which will be released in March).  It is the Company's intention to continue to make use of these revenue reserves to increase the dividend to shareholders annually while dividend cover from current portfolio earnings is rebuilt.  The Company's policy is that it intends (subject to market conditions) to grow the dividend in real terms, ahead of inflation. 
        
In accordance with the Company's policy, in the absence of unforeseen circumstances the first three interim dividends of the current financial year (in June, September and December 2021) will be paid at the rate of 1.36p (2020: 1.34p), being approximately one quarter of the 5.45p total payment in respect of 2020.
 
The Board has declared a fourth interim dividend instead of a final dividend, in order to ensure that, as in previous years, the distribution is made before 5 April.
 
 
For further information please contact:
 
Andrew Bell, Chief Executive Officer
Witan Investment Trust plc
Tel: 020 7227 9770
Andrew.bell@witan.co.uk
 
Alexis Barling, Director of Marketing
Witan Investment Trust plc
Tel: 020 7227 9770
Alexis.barling@witan.co.uk

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