Edison issues review on The Law Debenture Corp

London, UK, 26 February 2021

Edison issues review on The Law Debenture Corporation (LWDB)

The Law Debenture Corporation (LWDB) made the most of its structure in 2020, with the revenue contribution from its independent professional services (IPS) business - which saw another year of strong growth - helping to overcome a shortfall in portfolio income after widespread UK dividend cuts, and driving an unanticipated 5.8% increase in the total FY20 payout. NAV total returns for the year ended 31 December were modestly positive, compared with double-digit declines for many UK Equity Income peers. The diversity of the underlying IPS businesses means CEO Denis Jackson is sanguine about prospects even in uncertain market conditions, while fund managers James Henderson and Laura Foll will continue to capitalise on the investment freedom the IPS income contribution provides.

Having historically traded at a c 5-15% discount, LWDB re-rated substantially in FY20, perhaps as investors began to recognise the value of the differentiated proposition. At 25 February 2021, the shares traded at a 2.8% premium to adjusted cum-income NAV (with both debt and IPS at fair value) and had a yield of 3.8%. 

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Sarah Godfrey  +44 (0)20 3681 2519 [email protected]

Mel Jenner        +44 (0)20 3077 5720 [email protected]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-group-/

Twitter             www.twitter.com/Edison_Inv_Res 

YouTube       www.youtube.com/edisonitv