Law Debenture Corp PLC · LSE:LWDB
Law Debenture — Shareholder Meeting (April 2018)
22 slides from Law Debenture's shareholder meeting presentation, Apr 11, 2018
Slide 1: Annual Results 2017 Annual General Meeting
Law Debenture Annual Results 2017 Annual General Meeting 11 April 2018
Slide 2: Presented by
Presented by Law Debenture Denis Jackson Chief Executive Officer James Henderson Investment Manager Charlotte Greville Analyst 1
Slide 3: Highlights
Highlights Our primary shareholder return objective is to achieve long term capital growth in real terms and steadily increasing income 2017 NAV Total Return 2017 Revenue eps 2017 Dividend 16.6% 19.3p** 17.3p Benchmark* 2016 18.6p** 2016 16.7p 13.1% +4.0% +3.6% Notes: * Benchmark is FTSE Actuaries A
Slide 4: Long Term Performance – Return per share
Long Term Performance – Return per share * * Normalised excluding exceptional items (2.4p investment gain in 2017 : -2.6p provision in 2016) 3
Slide 5: Return and dividend per share
Return and dividend per share * * Normalised excluding exceptional items (2.4p investment gain in 2017 : -2.6p provision in 2016) 4
Slide 6: IPS Overview
IPS Overview • Very strong brand in the traditional markets where we choose to operate. High quality services. High level of client satisfaction. • Extremely well known in traditional markets, but relatively unknown in emerging sectors. • Looking to extend the client base, extend the range of servic
Slide 7: IPS: 2017 Results – A year in transition
IPS: 2017 Results – A year in transition • Underlying income increased 1.2%. • Costs maintained at same level as 2016. • Underlying profit before tax up 2.8% from 2016. • Underlying revenue per share flat compared to 2016 (7.69p in 2017 excluding the exceptional investment gain vs 7.68p in 2016). 6
Slide 8: Corporate Trust and Agency
Corporate Trust and Agency The Corporate Trust team act as the bridge between the borrower/issuer and the lender/note holders of a loan or bond and protects the interests of the lender/note holders. Our income is generated by a mixture of up-front acceptance fees on new business and long term, annua
Slide 9: Corporate Services
Corporate Services The Corporate Services teams help clients establish and maintain legal entities through the provision of company secretarial, governance, accounting and administrative services. Our service of process business is a single global business based in London, Jersey, Dublin, New York,
Slide 10: Pension trustee and governance services
Pension trustee and governance services The Pension Trustee team is the longest established and largest provider of independent pension trustees in the UK. Our clients pension schemes have over 2 million members with over £250 billion of assets invested on their behalf. Our traditional market has be
Slide 11: Safecall
Safecall Safecall helps international companies create a culture of integrity and openness by providing ethics telephone hotlines and online reporting systems. Notable appointments in 2017 included Euroclear, Hays, Kier, Laing O’Rourke and NATS. We see opportunity in organic growth and are targeting
Slide 12: IPS: Focus for the future
IPS: Focus for the future • The focus on growth will take some time and investment. • We are focusing on our strengths – quality of our service, our people, our reputation and our clients – with increased and more proactive promotion of our businesses and a focus on new products. • We are focusing o
Slide 13: Investment trust
Investment trust 2017 2016 Change £000 £000 % Revenue UK dividends 17,760 17,299 2.7 Overseas dividends 3,703 3,178 16.5 Other 95 74 21,558 20,551 Expenses (3,274) (2,739) 19.5 18,284 17,812 Interest (415) (165) Debenture interest (5,277) (5,277) Utilisation of onerous provision 1,131 - Inter-compan
Slide 14: Investment portfolio
Investment portfolio • Aim to achieve a better return than the FTSE All Share. • Stock picking valuation based approach. • Overseas holdings bring exposure to opportunities that cannot be found in the UK stock market. • The equity portfolio is expected to provide good dividend growth over long term.
Slide 15: 2017 geographic allocation as at 31 December
2017 geographic allocation as at 31 December Asset Portfolio Over/Under Local index breakdown return performance return (%) (%) (%) (%) UK 72.4 12.4 13.1 (0.7) North America 9.4 22.7 11.3 11.4 Europe 8.3 18.2 17.5 0.7 Japan 2.1 10.3 14.4 (4.1) Pacific 5.4 26.0 20.3 5.7 Other 2.4 25.6 25.8 (0.2) Tota
Slide 16: Global Champions
Global Champions CAREER BB yi, rol Microsoft Janus Henderson INVESTORS 15
Slide 17: Portfolio Sector breakdown at 31 December 2017
Portfolio Sector breakdown at: 31 December 2017 Sector weightings (%) Financials 28.8 26.6 Industrials 28.2 10.8 Oil & Gas 9.4 12.9 Consumer Services 8.5 11.1 Health Care 7.5 8.0 Basic Materials 7.1 7.6 Consumer Goods 5.9 15.6 Technology 1.9 1.2 Utilities 1.5 Weight % 2.6 Telecommunications 1.2 Benc
Slide 18: Dividend per Share – 10 years
Law Debenture dividend yield 2.7% vs. global trust sector of 1.4% Law Debenture Dividend per Share – 10 years 20 18 16 14 Pence per share 12 10 8 6 4 2 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 17
Slide 19: Portfolio Top 15 holdings at 31 December 2017
Portfolio Top 15 holdings at: 31 December 2017 % 1 Royal Dutch Shell 4.3 2 HSBC 2.7 3 BP 2.3 4 Senior 2.0 5 Rio Tinto 2.0 6 GKN 2.0 7 Rolls Royce 1.9 8 Prudential 1.9 9 GlaxoSmithKline 1.9 10 Relx 1.8 11 Johnson Service 1.8 12 Hiscox 1.6 13 Smith (DS) 1.6 14 Spectris 1.4 15 BAE Systems 1.4 18
Slide 20: Investment outlook
Investment outlook • The UK is generally out of favour. This will lead to opportunities • Dividend growth is coming through from a good starting level • Law Debenture has distinct advantages for a manager over other Trusts 19
Slide 21: investor’s particular circumstances and may change if those circumstances or the law change]. Nothing
Janus Henderson Investors 201 Bishopsgate, London EC2M 3AE Tel: 020 7818 1818 Fax: 020 7818 1819 Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. [Past performa
Slide 22: End
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