Edison issues review on The Merchants Trust (MRCH)

RNS Number : 5559V

Merchants Trust PLC

03 November 2017

 

London, UK, 3 November 2017

Edison issues review on The Merchants Trust (MRCH)

The Merchants Trust (MRCH) adopts a long-term approach to investing in UK equities, aiming to generate an above-average level of income along with long-term capital and income growth. The trust has announced a refinancing of its first tranche of high-cost debt, which will bring its effective cost of borrowing down from 8.5% to 6.1%, saving £2.8m in annual interest costs and locking in low-cost funding for the next 35 years. The board adopts a progressive dividend policy; annual dividends have increased for the last 35 consecutive years and the current 5.0% yield compares favourably with the average of MRCH's peers in the AIC UK Equity Income sector.

MRCH's current 5.3% share price discount to cum-income NAV with debt at market value is towards the low end of the 3.1% to 10.9% range of the last 12 months and compares to the averages of the last one, three, five and 10 years (range of 2.3% to 5.7%). There is potential for the discount to narrow as a result of the debt restructuring or if investment performance continues to improve. MRCH has a progressive dividend strategy; annual dividends have increased for the last 35 consecutive years, and the current yield is 5.0%.  

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Mel Jenner, [phone]

Sarah Godfrey, [phone]

[e-mail]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-investment-research 

Twitter           www.twitter.com/Edison_Inv_Res 

YouTube       www.youtube.com/edisonitv 

 

END

 

 

NRABXBDBLSGBGRX