London, UK, 10 December 2019
Edison issues initiation on UIL (UTL)
UIL Limited (UIL) is managed by ICM, where the lead managers aim to generate strong total returns by investing in undervalued companies across the globe. Charles Jillings, responsible for day-to-day management, stresses that ICM is a long-term, deep-value, high-conviction investor, seeking exposure to companies with high growth potential. UIL has generated strong absolute and relative NAV and share price total returns for investors; it measures investment performance against the FTSE All-Share index. The company has reduced its gearing significantly (although it remains high in the context of peers) and the board is now focused on achieving a lower discount to net asset value (NAV), targeting 20%.
UIL's discount has narrowed meaningfully in recent months, partly supported by ongoing share repurchases. Its current 27.7% share price discount to cum-income NAV compares with the 32.2% to 40.0% range of average discounts over the last one, three, five and 10 years. The company follows a levered investment strategy; at end-October 2019, net gearing was 68.0%.
Click here to view the full report.
Subscribe to Edison's content to receive reports by email.
All reports published by Edison are free-to-access and available on the website.
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
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:
Mel Jenner, +44 (0)20 3077 5720
Sarah Godfrey, +44 (0)20 3681 2519
Learn more at www.edisongroup.com and connect with Edison on:
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact email@example.com or visit www.rns.com.