Edison issues initiation on UIL (UTL)

RNS Number : 3916W

UIL Limited

10 December 2019

 

London, UK, 10 December 2019

Edison issues initiation on UIL (UTL)

UIL Limited (UIL) is managed by ICM, where the lead managers aim to generate strong total returns by investing in undervalued companies across the globe. Charles Jillings, responsible for day-to-day management, stresses that ICM is a long-term, deep-value, high-conviction investor, seeking exposure to companies with high growth potential. UIL has generated strong absolute and relative NAV and share price total returns for investors; it measures investment performance against the FTSE All-Share index. The company has reduced its gearing significantly (although it remains high in the context of peers) and the board is now focused on achieving a lower discount to net asset value (NAV), targeting 20%.

UIL's discount has narrowed meaningfully in recent months, partly supported by ongoing share repurchases. Its current 27.7% share price discount to cum-income NAV compares with the 32.2% to 40.0% range of average discounts over the last one, three, five and 10 years. The company follows a levered investment strategy; at end-October 2019, net gearing was 68.0%.  

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