Impressive Performance of The Law Debenture Corporation in FY23

Edison Investment Research Limited has published analysis on The Law Debenture Corporation (LWDB), highlighting a remarkable performance for financial year 2023. This UK investment trust, combined with a cash-producing professional services business, outperformed its index reference on the British equity market. The growth of its integrated professional services (IPS) segment exceeded expectations, as did the 4.9% increase in its dividend per share (DPS).

LWDB, heavily invested in UK equities (88%), stands out for particularly low valuations, with a forward P/E of less than 10x and a portfolio yield at its highest since 2008. Investment managers expect strong performance of the British economy, favored by a fall in interest rates and a recovery in real income, highlighting significant opportunities, particularly in well-managed small and medium-sized businesses, not fully valued by the market.