LONDON – Schroder UK Mid Cap Fund PLC (SCP) has disclosed its financial results for the year ending September 30, 2024, revealing a net asset value (NAV) total return of 17.3%. This performance, however, lagged behind the ex-Investment Trusts index, which returned 21.4% for the same period.

The fund’s relative underperformance was attributed to a market shift that favored interest rate-sensitive companies with weaker balance sheets—sectors where SCP has minimal exposure. Despite this, SCP’s proposed final dividend, in conjunction with the interim dividend paid on August 9, 2024, is expected to bring the total dividends for the year to 21.5p per share. The revenue return per share stood at 20.54p, indicating that the dividend payout is not fully covered by earnings.

As of September 30, 2024, the discount at which SCP shares trade relative to NAV slightly widened from 12% to 12.3%. However, in the weeks following, the discount has narrowed to 11.3% as of November 26, 2024. The fund also increased its net gearing from 6.8% to 9.5%, which positively contributed to its performance amid rising market conditions.

The fund’s managers have been actively seeking investment opportunities in companies that are poised for structural growth within their market niches. Outgoing chairman Robert Talbut expressed optimism about the future of UK mid-caps and the fund’s portfolio, emphasizing their focus on businesses with potential for long-term growth.

Kepler Trust Intelligence, in its analysis, noted SCP’s strong absolute returns despite not keeping pace with its benchmark. The analysis suggested that the recent lowering of interest rates by the Bank of England has temporarily disadvantaged SCP due to its low exposure to cyclical companies that have benefited from such monetary policy. However, SCP’s investment strategy may prove advantageous for long-term returns as it is less dependent on monetary policy.

The analysis also pointed out the potential for a narrowing valuation gap between FTSE 250 companies and their larger counterparts, which could bode well for the fund. Additionally, the possibility of merger and acquisition activity may support the performance of UK mid-caps going forward.

The report, based on a press release statement, also highlighted the consistent increase in SCP’s dividend since inception, despite the current year’s dividend not being fully covered by revenue return. It concluded by suggesting that SCP’s current share price discount could present an attractive entry point for long-term investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

By Joao Manuel Vicente Mauricio and Ankika Biswas

(Reuters) -Tech stocks spearheaded a rebound in European shares on Thursday, after a two-day slump fuelled by worries over potential U.S. tariffs and France’s economic and political challenges, with investors now closely watching inflation reports for clues on the future trajectory of interest rate cuts.

The pan-European index was up 0.4% to 507.23 points. Trading volumes were expected to be light with the U.S. market shut for Thanksgiving holiday.

The tech sector climbed nearly 1%, logging its best day in one week, as chip stocks gained after Bloomberg reported the U.S. administration’s China chip curbs could be less severe than expected.

Shares of ASM International (AS:), BE Semiconductor and ASML (AS:) gained between 2% and 2.5%.

France’s blue-chip index also regained some lost momentum, gaining 0.5%, after sliding to August lows in the previous session.

Defence stocks led sectoral gains, boosted by a 4.1% jump in Airbus.

Sentiment eased after European Central Bank President Christine Lagarde told the Financial Times a global trade war would be “in nobody’s interest”.

French government bonds held steady after Wednesday’s sell-off drove the risk premium over German bonds to its highest point since the 2012 debt crisis.

French Prime Minister Michel Barnier’s government faces an uncertain future, as his struggle in securing approval for the 2025 budget in a polarized parliament make it increasingly likely that his fragile coalition will collapse.

“We don’t think (Marine) Le Pen (leader of far-right National Rally party) will follow up on her threats to topple the government in the near term, but it does remind markets of the precarious situation the country is in,” said Michiel Tukker, senior European rates strategist at ING.

The banking sector also provided some support to the STOXX 600. It gained 0.9%.

Inflation in Germany, Europe’s largest economy, remained flat in November at 2.4%, while rising in several German states. Spain’s November headline inflation met expectations.

Inflation figures for the euro zone, France and Italy are set to be released on Friday.

These reports follow stubbornly strong U.S. inflation data, which raised concerns that the Federal Reserve might take a cautious approach to policy easing.

Shares of Direct Line (LON:) Insurance soared 41.4% after the insurer rejected a 3.28-billion-pound takeover offer from bigger rival Aviva (LON:), whose shares were down 2.3%.

On the other hand, Grifols (BME:) fell 11.8%, extending losses to the second session, after Canadian fund Brookfield dropped its takeover plans.

DUBLIN – Conroy Gold and Natural Resources plc (AIM: CGNR), an exploration and development company focused on gold and base metals, has reported its audited accounts for the year ending May 31, 2024. The company, which operates the Discs of Gold Project across Ireland and Northern Ireland, highlighted significant progress in its exploration efforts.

The project, formerly known as the Longford – Down Massif, features two parallel district-scale gold trends, the Orlock Bridge and Skullmartin, spanning over 90 km and centered around the Clontibret gold deposit. Conroy Gold has secured over 1,000 km² of land holdings, fully owned, across these trends and has identified eight exploration targets.

Particularly noteworthy is the Clontibret to Clay Lake prospect within the Orlock Bridge trend, a 7 km zone that has shown promising mineralization. Recent drilling results have revealed broad zones of mineralization with intersections of 95m at 1.0g/t gold at Clontibret and 100m at 0.6g/t gold at Clay Lake.

The company has initiated a re-logging program covering more than 30,000 meters of drill core to refine its data and guide future investment decisions. This effort is part of Conroy Gold’s strategy to further understand the project’s potential and to inform its next investment cycle.

In a strategic move, Conroy Gold entered a binding agreement in April 2024 with Demir Export A.Ş., resulting in the latter’s exit from the Joint Venture Framework Agreement in exchange for a net smelter royalty. Demir Export had invested a total of €5,657,671 in the venture.

The announcement comes during a period of mourning for the company following the passing of its founder, Professor Richard Conroy. Chairman John Sherman expressed his commitment to realizing Conroy’s vision of establishing an operational gold mine in Ireland.

The company’s full annual report and accounts for the year to May 31, 2024, will be made available to shareholders and on the Conroy Gold website. Additionally, the company announced its Annual General Meeting to be held on December 18, 2024, at The Conrad Dublin Hotel.

This news is based on a press release statement from Conroy Gold and Natural Resources plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.