National Investment Trust Ltd Implements Restructuring Plan, Achieving Attractive Dividends for Shareholders and Increasing Net Asset Value

Published On: December 15, 2023Company: National Investment Trust Ltd (NITL.mu)
What notable action was taken as part of the company's restructuring strategy?
As part of their restructuring strategy, the company sold significant parts of the company's investment portfolio and made two payments to their shareholders. Additionally, they appointed Orange Eight Ltd as a strategic partner and have been working towards a leaner organization through cost-cutting and governance structure improvements.

Summary

  • Strategy & Value Creation: The company’s focus has been on executing a restructuring plan, aiming towards a leaner organization that can return attractive dividends to shareholders. They’ve engaged in a strategic partnership, implemented a voluntary retirement scheme, sold significant investments, and distributed cash to shareholders. They intend to enhance profitability through fund management, operational cost-cutting, and governance structure improvements.
  • Financial Performance: The period under review witnessed the company’s transition phase, so its financial performance should be seen accordingly. There’s been a stable Net Asset Value along with a drop in the profit after tax due to lower unrealized gains.
  • SICOM Ltd: NIT’s 12% stake in SICOM increased by Rs 13.1m while its distributable earnings decreased due to heightened operational costs.
  • LIM 2: Its last investment exited post balance sheet date, garnering a return of 65% over eight years.
  • LIM 3: Despite the poor market environment for high yield and distressed bonds, the investment is still up by 12% since its inception.
  • Fund Management Activities: Orange Eight Ltd was brought on board as a strategic partner to help grow fund management. NIT aims to double the assets under management over the next three years while covering operating expenses from this segment’s revenue. They aim to maintain a defensive approach in the current uncertain macroeconomic environment.
  • Outlook: The company plans to continue focusing on the development of fund management activities amidst the prevailing uncertain macroeconomic environment.

Useful links

About National Investment Trust Ltd (NITL.mu)

National Investment Trust Limited is an investment trust company that provides services for individuals and corporate investors. The company engages in the launching and management of equity and fixed income mutual funds for its clients. NITL invests in equity and fixed income markets. National Investment Trust Limited is listed on the Stock Exchange of Mauritius

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