City of London has announced a trading statement covering its second-quarter FUM and first-half financial performance. These are excellent, even allowing for the boost that the Karpus transaction has given. The highlight for many investors will be the interim dividend increase to 11p (from 10p in 2020), with strong profit progress and an increased cash balance of £17.5m underpinning future dividend prospects. Estimated pre-tax and pre-amortisation profit for the half-year is estimated at £9.9m, a 60% increase over the 2020 figure. Exceptional transaction costs of £1.7m give an underlying figure of £11.6m.
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