In QuotedData’s morning briefing 16 October 2024

• Invesco Perpetual UK Smaller Companies Investment (IPU) announced its interim results for the six months to 31 July 2024. The company saw a strong NAV total return of 13.8%, ahead of the benchmark index return of 12.1%. Shares were up 13.3%. IPU also paid its first interim dividend of 3.85p, maintaining the target dividend yield of 4% and announced a special dividend allowing up to 10% of shareholders the opportunity to realise a part of their holding at close to NAV. Commenting on the outlook for the company, portfolio managers Jonathan Brown and Robin West added: “Despite the protestations of the new government, the UK economy is in decent shape. The consumer sector is seeing discretionary income growing at over 10% this year, as wages continue to rise at a rate well ahead of inflation. Household balance sheets are also relatively strong following a period of elevated savings. This, combined with full employment, should ensure a healthy consumer backdrop as we progress through the year. The industrial sector has struggled over the last year, as businesses reduced inventories following the period of post pandemic supply chain disruption. Conversations with businesses suggest that in many cases inventories have returned to historic levels and ordering patterns are normalising. We are hopeful that this will herald a return to growth for the industrial sector over the coming year. So, with an improving economic outlook, a continued high level of take-over activity, and the relatively low valuation of UK smaller companies, we believe the sector can continue to make good progress over the next year.”
• Hammerson (HMSO) has commenced a £140m share buyback programme, the sole purpose of which is to reduce the company’s share capital. Shares purchased will be cancelled.