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Investment company Aberforth Smaller Companies Trust upped its dividend despite its performance slumping in the first half.
The company's net asset value value total return fell 36% in the six months through June, underperforming a 25% fall on the Numis Smaller Companies Index.
But it increased its dividend 4% to 10.4p per share, citing revenue reserves of around 2.4 times its ordinary dividend.
Chairman Richard Davidson said the historical valuation of the company's portfolio, at 6.1 times on 30 June, was at its most attractive in 30 years, matching levels last seen in 2009.
'Meanwhile, the economic recovery is underway,' Davidson said.
'Though the physical and psychological effects of the pandemic will likely result in an uneven trajectory, the combination of liquidity injections from the authorities and equity issues are providing companies with the tools and resources to get back on the front foot.'
'In time, this will allow dividends to be reinstated, which supports the company's progressive dividend policy.'
'The board and the managers fully expect small UK quoted companies once again to show their mettle, as they have done throughout Aberforth's life.'
At 2:23pm: (LON:ASL) Aberforth Smaller Companies Trust PLC share price was -0.5p at 855.5p