The shareholders of Lindsell Train Limited, the fund business co-founded by Nick Train, split a £20mn dividend in the six months to the end of June 2023, despite a steep drop in profits.
The information is contained in the accounts of Lindsell Train plc, an investment trust which owns around 26 per cent of Lindsell Train Limited, a private company.
The remaining 74 per cent of the shares of Lindsell Train Limited are owned by Nick Train and Mike Lindsell, both fund managers.
The half-year accounts revealed post-tax profits were down 20 per cent on the previous year to reach £23.1mn.
Of that £23.1mn, the shareholders decided to pay a dividend of £20mn, this dividend payment is a decrease on the £28mn the prior year.
The company’s total assets under management dropped by £2.5bn in six months, to £16.3mn, while the total number of employees remained static at 30.
The company runs a UK open and a UK closed-ended fund, a global opened fund, a US equity fund which is run by one of the staff shareholders in the company, James Bullock.
Bullock joined the company as a graduate and is playing an increasingly large role within the company. He is also one of the staff who owns a small number of shares in the business.
Train has previously stated that succession planning is underway at the firm.
The company operates a salary cap, whereby total pay and bonuses cannot exceed 26 per cent of the revenues of the business, and traditionally pays out 80 per cent of the profit it makes as dividends.
Based on the valuation multiple applied by Lindsell Train Plc to its own shareholding in Lindsell Train Limited, the company is worth £310mn, a drop from the £500mn valuation it had in mid-2021.
david.thorpe@ft.com
