23 March 2020
By Maynard Paton
Results summary for City of London Investment (CLIG):
- Funds under management rallied to a record level in GBP terms, lifting revenue by 11%, profit by 22% and the dividend by 11%.
- However, the market crash that followed these results has superseded a lot of the statement’s commentary and accounting.
- Profit may now be running almost 40% lower than at the start of the year and may just about cover the 28p per share full-year dividend.
- The accounts continue to sport high margins, decent cash flow and net cash — all of which ought to see the business through the present downturn.
- Although the shares have been rated modestly on a P/E basis for years, the possible yield now tops 9%. I continue to hold.