National Investment Trust Plc Achieves Impressive 69.47% Gross Annualized Return, with Net Profit Surging by K16,490 Million

Published On: September 4, 2023Company: The National Investment Trust Plc (NITL.mw)
What were the key factors driving the increased profitability of National Investment Trust Plc within the year?
The key factors were the appreciation in share prices of several investee companies and a rise in dividend income, leading to a significant increase in net profit and revaluation gains on the company's equity investments. The directors also approved a higher interim dividend for the fiscal year.

Summary of Key Insights

  • The gross annualized return for National Investment Trust Plc was 69.47% in the current period, a significant increase from 17.33% in the previous year.
  • The Company’s net profit rose noticeably from K1,463 million to K16,490 million within a year.
  • This increase in profitability was mainly due to an appreciation in the share prices of investee companies and an uplift in dividend income.
  • Revaluation gains on the Company’s equity investments also increased substantially, rising from K1,325 million to K16,189 million year on year.
  • Moreover, dividend income grew from K248 million to K489 million over the same period.
  • The Directors approved an interim dividend of K202.5 million, a substantial increase from K108 million in 2022; this equates to 150 tambala per share in 2023 against 80 tambala per share in the previous year.
  • The cut-off to qualify for dividend payment is close of business on 20th October 2023. It will be paid on the 27th of the same month. Between 20th and 23rd October 2023, the register is closed for transfers.

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About The National Investment Trust Plc (NITL.mw)

The National Investment Trust Plc (NITL) manages a closed-end fund that invests in a diversified of Malawi Stock Exchange listed shares and unlisted private securities. The principle objective of NITL is to provide a vehicle for the public to participate in equity investment in Malawi. The fund is a product of Malawi’s progressive privatisation policy and provides income and capital growth opportunities for investors. Financial gain from investments are tax free if held for more than a year. NITL manages a portfolio of investments with funds raised by selling units allocated according to the amount invested in the fund. The NITL manages two Unit Trusts; the NITL Local Equity Fund and the NITL Global Opportunities Fund. Both provide favourable middle- to long-term performance with controlled risk and tax-free earnings. The holding company is based in Mauritius. The National Investment Trust Plc (NITL) is listed on the Malawi Stock Exchange

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