Lindsell Train Investment Trust PLC said its net asset value has decreased again after a difficult financial year, but said it was ‘reassured’ by the number of historically resilient companies in its portfolio.

The London-based, rail-focused investment trust said its NAV at March 31 was £1,056.95 per share, down by 5.1% from £1,113.81 at the same time one year prior.

In London on Tuesday, shares in Lindsell Train were down 2.2% at £999.76 each.

NAV total return for the year ended March 31 was negative 0.4%, compared with negative 2.3% the previous year. Lindsell Train said this was ‘marginally better’ than its benchmark, the MSCI World Index in Sterling, which reported a return of negative 1.0%.

Lindsell Train declared a final dividend of £51.50 per share for financial 2023, representing a 0.7% increase from £51.12 the year before. It did not earn any performance fees and therefore declared no special dividends. This meant total dividends for the year decreased by 2.8% to £51.50 from £53.00.

The company said that overall, it was ‘satisfied’ with its performance ‘considering the opportunities and challenges faced during the year,’ and ‘firmly believes’ that it can deliver strong returns in the long-term future.

‘With interest rates rising as much and as quickly as they have, it is encouraging that markets have been able to absorb these increases with relative equanimity,’ commented Chair Julian Cazalet. ‘In this environment the board is much reassured that the company owns a selection of durable quoted companies with a history of having thrived through more difficult times in the past.

‘Let us hope these companies continue to compound the returns we seek. If they do, market prices should eventually respond, which should be to the benefit of our direct holdings and [Lindsell Train’s] business.’

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