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RNS

Half-year Report

Released 14:56 18-Jul-2017

RNS Number : 4145L
Brunner Investment Trust PLC
18 July 2017
 

 

For immediate release                                                                                    18 July 2017

 

THE BRUNNER INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT

For the six months ended 31 May 2017

 

Highlights

 

·      Net asset value (debt at fair value) per share up by 11.6% (2016: +1.5%)

·      Net asset value (debt at par) per share up by 11.3% (2016: +1.3%)

·      Earnings per ordinary share 10.2p (2016: 8.9p)

·      Dividends for the half year 7.0p1 (2016: 6.6p)

·      Net asset value total return (debt at fair value) per share up by 12.6% (2016: +2.6%)

·      Net asset value total return (debt at par) per share up by 12.3% (2016: +2.3%)

·      Share price up by 18.5% to 701.0p (2016: 591.8p)

·      Discount of net asset value (debt at fair value) to share price 12.5% and an average of 14.1% over the period 

 

 

 

Revenue

At 31 May

2017

 

At 31 May

2016

 

 

%

change

 

Available for ordinary dividend

£4,343,000

£3,806,000

 

+14.1

Earnings per ordinary share

10.2p

8.9p

 

+14.6

Quarterly dividends per ordinary share

7.0p1

6.6p

 

+6.1

Retail price index

271.7

262.1

 

+3.7

 

 

 

 

 

1First quarterly 3.5p, second quarterly 3.5p

 

 

 

 

Assets

 

 

At 31 May

2017

 

At 30 Nov

2016

 

 

% change

Net asset value per ordinary share

(debt at fair value)

 

801.6p

 

718.0p

 

 

+11.6

Net asset value per ordinary share (debt at par)

826.8p

742.8p

 

+11.3

Ordinary share price

701.0p

591.8p

 

+18.5

Total net assets (debt at fair value)

£342,219,000

£307,707,000

 

+11.2

Total net assets (debt at par)

£352,984,000

£318,334,000

 

+10.9

 

 

 

 

 

 

Net Asset Value relative to Benchmark*

 

 

 

Capital Return2

 

Total Return3

 

 

 

 

 

Change in net asset value

 

 

11.6%

 12.6%

Change in benchmark

 

 

9.3%

11.1%

 

 

 

 

 

Performance against benchmark*

 

 

2.3%

1.5%

 

 

 

 

 

2 Debt at fair value.

3 Total returns are calculated with net dividends reinvested

 

Portfolio relative to benchmark*

 

 

 

Capital Return2

 

Total Return3

 

 

 

 

 

Net portfolio return (excluding cash)

 

 

11.2%

13.0%

Change in benchmark

 

 

9.3%

11.1%

 

 

 

 

 

Performance against benchmark*

 

 

1.9%

1.9%

                 

 

*The benchmark applied was 50% FTSE All-Share Index and 50% FTSE World Ex UK Index until 21 March 2017, and 70% FTSE World Ex UK Index and 30% FTSE All-Share Index from 22 March 2017.  

    

 

Interim Management Report

 

Performance

 

The Net Asset Value per ordinary share of the company increased by 12.6% on a total return basis, outperforming the benchmark (50% FTSE All-Share Index and 50% FTSE World Ex UK Index until 21 March 2017, and 70% FTSE World Index and 30% FTSE All-Share Index from 22 March 2017), by 1.5%. 

 

Earnings

 

Earnings increased by 14.6% to 10.2p per ordinary share in the six months to 31 May 2017 (2016: 8.9p).

 

Gearing

 

The gearing at 30 November 2016 was 6.9% and at 31 May 2017 was 5.7%. Gearing is calculated after deducting cash held to offset some of the long term debentures issued.

 

Dividends

 

In continuation of the policy to distribute income more evenly throughout the year, the board declared a first quarterly dividend of 3.50p per ordinary share which was paid on 30 June 2017.  The board has now declared a second quarterly dividend of 3.50p per ordinary share payable on 20 September 2017 to holders on the register of members at the close of business on 18 August 2017.  Accordingly, this has no implication for the growth of the final dividend for the year. A third quarterly payment will be made in December and the final dividend will be proposed for payment in March 2018.

 

Material events and transactions

 

In the six month period ended 31 May 2017 the following material events and transactions have taken place.

 

·      At the annual general meeting of the company held on 21 March 2017, all the resolutions put to shareholders were passed.

·      The change of the company's benchmark to 70% FTSE World Ex UK Index and 30% FTSE All-Share Index was approved at the AGM and took effect from 22 March 2017.

·      During the period under review the company purchased 164,931 ordinary shares for cancellation.

 

There were no related party transactions in the period.

 

Since the period end, no further ordinary shares have been purchased for cancellation.

 

Principal Risks     

 

The principal risks facing the company over the next six months are broadly unchanged from those described in the Annual Financial Report for the year ended 30 November 2016. These are set out in a table in the Strategic Report on page 12 of the annual report, together with commentary on the board's approach to mitigating the risks, under the following headings: Portfolio Risk; Business Risk; and Operational Risk. 

 

In addition to the principal risks, the company faces the risks associated with the provision of services by third parties and general business risks including accounting, legal and regulatory matters. The board oversees  a  detailed review of the principal risks by the audit committee at least twice a year to ensure the risk assessment is current and relevant, adjusting mitigating factors and procedures as  appropriate.

 

Going concern

 

The directors believe it is appropriate to continue to adopt the going concern basis in preparing the financial statements as the assets of the company consist mainly of securities which are readily realisable and accordingly, the company has adequate financial resources to continue in operational existence for the foreseeable future.

  

Responsibility Statement

 

The directors confirm to the best of their knowledge that:

 

·      The condensed set of financial statements contained within the half-yearly financial report has been prepared in accordance with FRS 102 and FRS 104, as set out in Note 2, and the Accounting Standards Board's Statement 'Half-Yearly Financial Reports'; and

 

·      The interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7 R of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

 

·      The interim management report includes a fair review of the information concerning related parties transactions as required by the Disclosure and Transparency Rule 4.2.8 R.

 

 

The half-yearly financial report was approved by the board on 18 July 2017 and the above responsibility statement was signed on its behalf by the Chairman.

 

 

Carolan Dobson

Chairman

 

 

Enquiries:

 

For further information, please contact:

 

Allianz Global Investors GmbH, UK Branch

Melissa Gallagher

Head of Investment Trusts

Tel: 020 3246 7539

 

 

 

Investment Manager's Review   

 

Market Review

 

During the period, European and emerging market equities led market strength helped by further signs that global economic activity continued to improve. US equities were arguably held back somewhat by increasing political risks and uncertainties concerning the ability of President Trump's administration to enact its policy agenda. Strong corporate results and better-than-expected US jobless claims and regional manufacturing data at the end of May helped calm the nerves.

 

In terms of sectors, Information Technology stocks delivered robust returns. Utilities and Consumer Staples also performed well. On the other hand, Energy lagged as oil prices failed to build on earlier gains.

 

During the period, the Federal Reserve raised US interest rates twice - in December and again in March - taking the federal funds rate to a range of 0.75% to 1.0%. In contrast, in December the European Central Bank (ECB) extended its bond-buying programme until at least the end of 2017, but reduced the size of its monthly bond purchases. Subsequently, rising inflation in the first quarter of 2017 led to speculation that the ECB would need to wind down these measures, with President Mario Draghi noting that the battle against deflation had now been won. The Bank of England and Bank of Japan left monetary policy unchanged.

 

Diminishing political risk following Emmanuel Macron's victory in the French presidential elections and further signs of euro-zone recovery boosted the euro while the US dollar weakened amid rising political turmoil.

 

Oil prices initially strengthened following the news that OPEC had agreed to cut production, but later weakened amid signs of rising US supply.

 

Portfolio Review

 

On a total return basis, over the period the portfolio's NAV with debt at fair value rose 12.6%, compared to a 11.1% gain for the benchmark (50% FTSE All-Share Index and 50% FTSE World Ex UK Index until 21 March 2017, and 70% FTSE World Ex UK Index and 30% FTSE All-Share Index from 22 March 2017).  Overall stock selection contributed positively, particularly in Financials, Technology and Consumer Goods, which more than offset a negative contribution from Consumer Services, Health Care and Telecommunications. Industry weights, which are a result of bottom-up stock picking, also contributed.

 

The top contributor to performance was United Internet, which announced the merger of their consumer telecom operations with Drillisch to gain strength in the telecom sector in Germany. This deal represents significant synergies and a solution for the issue of credible 4G wholesale access for United Internet, one of the major market concerns for the company.

 

Tyman was another strong contributor. FY16 results were strong, with margins in both the US and Europe ahead of expectations. This margin momentum looks set to continue as the US footprint project delivers more savings and synergies come through early. Management continues to benefit from self-help initiatives and plans to manage higher cost inflation through pricing, effective purchasing and cost reductions. The company has made significant progress structurally improving the business and we expect continued progress over the next few years.

 

Firstgroup, the US and UK ground transportation company, also outperformed. Full year results for the year to 31 March 2017 were better than expected, primarily due to better performances in North America. The share price has risen strongly in recent months: up 22% since it announced the South Western rail franchise win on 25 March 2017 and supported by a stronger dollar.

 

Nielsen was the top detractor. First quarter results came slightly below expectations as the company continued to experience weakness in the Buy segment, attributed to continued spending pressure from retail customers in the US. We view this as a short-term issue and the rest of the business remains strong; we maintain our belief that Nielsen is one of the better positioned companies within the media sector, particularly given its leading position in the evolving and steadily growing Watch segment.

 

We reduced our exposure to the Energy sector in the first quarter this year and the underweight in the sector was positive to performance during the period. EOG Resources detracted, reflecting the overall fall in oil prices. EOG has grown mostly through internally generated projects over the last five years, only recently announcing their acquisition of Yates Petroleum. Given the potential of its portfolio, we still see EOG as a compelling investment.

 

Walgreens Boots also underperformed. While the Rite Aid acquisition, which would represent good synergy opportunities for the company, is still pending on the government's authorisation, speculations that Amazon is looking to enter the pharmacy market could represent a market disruption in the retail pharmacy business, directly affecting Walgreens Boots. The stock is under review as our conviction in the name is decreasing.

During the period, we started new positions in Criteo, Wabtec, Celgene, Iberdrola, Tencent, Howden and WPP.

 

Criteo provides web advertising services and offers a range of solutions such as click per cost and online banner displays. We believe Criteo is well positioned to benefit from the shift in display ads toward Real-Time Bidding (RTB) and programmatic buying in general, as we believe the company has strong technology and scale advantages.

 

Wabtec is the North America's largest manufacturer of air brake systems and other products for the railroad and mass transit markets. The company's brake products command a 50% market share in North America and its other products generally hold the number one or number two position in their respective markets. Wabtec is a beneficiary of railroad operators' spending to enhance productivity, growth in mass transit programmes globally and a potential pick up in infrastructure spending in the US. The company's multipronged growth strategy includes introducing new products, enhancing international sales, expanding aftermarket exposure and acquiring bolt-on businesses.

 

Sales included Total, BHP, Aviva, TGS, Flowserve, BT and ING Groep.

 

Flowserve continues to face pricing pressures due to reduced energy project activity and very competitive bidding from competitors. Industry fundamentals are likely to remain challenging and against this backdrop we have reinvested the proceeds in higher conviction stocks like Wabtec.

 

Benchmark

 

The benchmark for investing changed to 70 per cent global equities, represented by the FTSE World Ex UK Index and 30 per cent UK equities, as represented by the FTSE All-Share Index, with effect from the AGM in March this year, the benchmark having previously been a 50:50 per cent split of the same indices. The portfolio manager had (and continues to have) considerable discretion either side of the benchmark proportions and had been investing increasingly in global equities, partly to diversify the income stream further, and partly to invest in attractive overseas growth opportunities. The revision to the benchmark reflects this development of investing a higher proportion in global equities. The impact of the change in the benchmark has therefore been a gradual change to the investment strategy and stock selection. Over the reporting period, the change in benchmark has therefore had little impact on performance.

 

Outlook

 

Expectations of a continued economic upswing and the still generous monetary policy of the leading international central banks should be positive for equities. Moreover, the good momentum of analysts' corporate earnings estimates is also a good signal for the stock markets. At the same time, divergent monetary policies in the US and Europe and persistent political uncertainties might result in elevated volatility.

 

In this environment, active management is required to augment returns. We are comfortable taking advantage of these opportunities to buy high quality growth franchises at attractive valuations.

 

Lucy MacDonald

Allianz Global Investors

 

BRUNNER INVESTMENT TRUST PLC

LISTED EQUITY HOLDINGS AS AT 31 MAY 2017   

 

 

 

Security Name

Market

Value

Total Assets

 

 

£'000s

%

Principal Activity

Microsoft

12,797

3.43

Royal Dutch Shell 'B' Shares

10,449

2.80

United Health

9,284

2.48

AbbVie

8,589

2.30

BP

8,160

2.18

Roche Holdings

7,654

2.05

Muenchener Rueckver

7,522

2.01

HSBC

7,432

1.99

Estee Lauder 'A' shares

7,018

1.88

GlaxosmithKline

6,972

1.87

Visa

6,747

1.81

Microchip Technology

6,525

1.75

Unilever

6,497

1.74

Priceline Group

6,300

1.69

Apple

6,255

1.67

Accenture

6,188

1.66

Iberdrola

6,182

1.65

Walgreen

6,158

1.65

United Internet

6,152

1.65

Software & Computer Services

Taiwan Semiconductor (ADS)

5,942

1.59

Technology Hardware & Equipment

Nielsen

5,874

1.57

Media

Fresenius

5,771

1.54

Health Care Equipment & Services

Agilent Technologies

5,692

1.52

Electronic & Electrical Equipment

Amphenol

5,308

1.42

Electronic & Electrical Equipment

Prudential

5,207

1.39

Life Insurance

Senior

5,187

1.39

Aerospace & Defence

Amadeus

5,176

1.39

Support Services

Rio Tinto

5,133

1.37

Mining

Tyman

5,055

1.35

Construction & Materials

TP ICAP

5,017

1.34

Financial Services

Lloyds Banking Group

4,941

1.32

Banks

Adidas

4,926

1.32

Personal Goods

Covestro

4,919

1.32

Chemicals

Tencent Holdings

4,820

1.29

Software & Computer Services

Nestle

4,815

1.29

Food Producers

Ametek

4,682

1.25

Electronic & Electrical Equipment

AIA

4,622

1.24

Life Insurance

Howden Joinery

4,529

1.21

Support Services

UBM

4,511

1.21

Media

Equiniti

4,465

1.20

Support Services

Balfour Beatty

4,385

1.17

Construction & Materials

Greene King

4,378

1.17

Travel & Leisure

Citigroup

4,360

1.17

Banks

WPP

4,358

1.17

China Mobile

4,346

1.16

Mobile Telecommunications

IFG Group

4,276

1.14

Financial Services

UBS

4,148

1.11

Banks

Atlas Copco

4,132

1.11

Industrial Engineering

Ameriprise Financial

4,118

1.10

Financial Services

 

 

Security Name

Market

Value

Total Assets

 

 

£'000s

%

Principal Activity

Cie Financiere Richemont

3,987

1.07

Personal Goods

EOG Resources

3,928

1.05

Oil & Gas Producers

STHREE

3,913

1.05

Support Services

Schneider Electric

3,870

1.04

Electronic & Electrical Equipment

Hansteen Holdings

3,861

1.03

Real Estate Investment Trusts

Vodafone

3,833

1.03

Mobile Telecommunications

Centrica

3,624

0.97

Gas, Water & Multiutilities

Monsanto

3,566

0.95

Food Producers

FirstGroup

3,555

0.95

Travel & Leisure

Criteo

3,510

0.94

Media

Jiangsu Express

3,452

0.92

Industrial Transportation

ITOCHU

3,450

0.92

Support Services

Celgene

3,354

0.90

Pharmaceuticals & Biotechnology

NEX

3,215

0.86

Financial Services

BASF

3,201

0.86

Chemicals

MERLIN Properties

3,185

0.84

Real Estate Investment & Services

Brambles

3,142

0.84

General Industrials

Astellas Pharma

3,133

0.84

Pharmaceuticals & Biotechnology

Wabtec

3,083

0.83

Industrial Engineering

Ashmore

3,062

0.82

Financial Services

Sirius Real Estate

2,800

0.75

Real Estate Investment & Services

Better Capital

2,748

0.74

Equity Investment Instruments

CCR

2,695

0.71

Industrial Transportation

Cielo

2,570

0.69

Financial Services

SMC

2,524

0.68

Industrial Engineering

Australia and New Zealand Bank

2,348

0.63

Banks

 

373,583

  99.99

 

 

 

 

 

UNLISTED EQUITY HOLDINGS

 

 

 

at 31 May 2017

 

 

 

 

Market Value

Total Assets

 

 

£'000s

%

Principal Activity

 

 

 

 

First Debenture Finance

24

0.01

Financial Services

Fintrust Debenture

4

0.00

Financial Services

 

28

0.01

 

 

 

 

 

 

                       

GEOGRAPHICAL ANALYSIS AS AT 31 MAY 2017

 

 

%

 

 

United Kingdom             

35.22

North America

32.07

Europe

21.19

Pacific Basin

7.67

Japan

2.44

Latin America

1.41

 

 

Total

100.00

 

 

 

SECTORAL ANALYSIS AS AT 31 MAY 2017

 

 

%

 

 

Financials

22.00

Industrials

21.66

Health Care

11.98

Technology

11.37

Consumer Services

10.34

Consumer Goods

8.25

Oil & Gas

6.03

Basic Materials

3.55

Utilities

2.63

Telecommunications

2.19

 

 

Total

100.00

 

 

 

SUMMARY OF UNAUDITED RESULTS

INCOME STATEMENT

for the six months ended 31 May 2017

 

 

Revenue

Capital

Total Return

 

£'000s

£'000s

£'000s

 

 

 

(Note 2)

Net gains on investments at fair value

-

37,381

 37,381

Exchange losses on currency balances

-

(14)

(14)

Income from investments

5,812

-

5,812

Other income

              89

-

89

Investment management fee

(262)

(611)

(873)

Administration expenses

(316)

(4)

(320)

Net profit before finance costs and taxation

 5,323

36,752

 42,075

Finance costs: interest payable and similar charges

(667)

(1,531)

(2,198)

Net profit before taxation

4,656

35,221

39,877

Taxation

(313)

-

(313)

 

 

 

 

Net profit attributable to ordinary shareholders

4,343

35,221

39,564

Net earnings per ordinary share (Note 1)

 

 

 

(basic and diluted)

10.17p

82.47p

92.64p

 

 

 

 

 

BALANCE SHEET

as at 31 May 2017

 

 

 

£'000s

 

 

Investments held at fair value through profit or loss (Note 3)

373,611

Net current assets

 10,093

Total assets less current liabilities

383,704

Creditors: amount falling due after more than one year

(30,720)

Total net assets

352,984

 

 

Called up share capital

 10,673

Capital redemption reserve

 5,327

Capital reserves

 322,622

Revenue reserve

  14,362

Shareholders' funds

352,984

 

 

Net asset value per ordinary share

826.8p

 

 

The net asset value is based on 42,692,727 ordinary shares in issue at 31 May 2017

 

 

 

 

 

SUMMARY OF UNAUDITED RESULTS

INCOME STATEMENT

for the six months ended 31 May 2016

 

 

Revenue

Capital

Total Return

 

£'000s

£'000s

£'000s

 

 

 

(Note 2)

Net gains on investments at fair value

-

 5,548

 5,548

Exchange gains on currency balances

-

 27

 27

Income from investments

         5,225

-

 5,225

Other income

              89

-

 89

Investment management fee

(217)

(506)

(723)

Administration expenses

(348)

(2)

(350)

Net profit before finance costs and taxation

         4,749

 5,067

 9,816

Finance costs: interest payable and similar charges

(670)

(1,537)

(2,207)

Net profit before taxation

4,079

3,530

7,609

Taxation

(273)

-

(273)

 

 

 

 

Net profit attributable to ordinary shareholders

3,806

3,530

7,336

Net earnings per ordinary share (Note 1)

 

 

 

(basic and diluted)

8.85p

8.21p

17.06p

 

 

 

 

 

BALANCE SHEET

as at 31 May 2016

 

 

 

£'000s

 

 

Investments held at fair value through profit or loss (Note 3)

 291,115

Net current assets

 35,101

Total assets less current liabilities

 326,216

Creditors: amount falling due after more than one year

(49,205)

Total net assets

277,011

 

 

Called up share capital

 10,747

Capital redemption reserve

 5,253

Capital reserves

 247,478

Revenue reserve

 13,533

Shareholders' funds

277,011

 

 

Net asset value per ordinary share

644.4p

 

 

The net asset value is based on 42,987,418 ordinary shares in issue at 31 May 2016

 

 

 

BALANCE SHEET

as at 30 November 2016

 

 

 

£'000s

 

 

Investments held at fair value through profit or loss (Note 3)

339,322

Net current assets

28,080

Total assets less current liabilities

367,402

Creditors: amount falling due after more than one year

(49,068)

Total net assets

318,334

 

 

Called up share capital

10,714

Capital redemption reserve

5,286

Capital reserves

288,393

Revenue reserve

13,941

Shareholders' funds

318,334

 

 

Net asset value per ordinary share

742.8p

 

 

The net asset value is based on 42,857,658 ordinary shares in issue at 30 November 2016

 

 

 

 

 

 STATEMENT OF CHANGES IN EQUITY

           

 

 

 

 

 

Called up

Share

Capital

£'000s

Capital Redemption Reserve

£'000s

 

Capital

Reserve

£'000s

 

Revenue Reserve

£'000s

 

 

Total

£'000s

 

 

 

 

 

 

Six months ended 31 May 2017

 

 

 

 

 

Net assets at 1 December 2016

          10,714

  5,286

288,393

 13,941

 318,334

Revenue profit

                  -

 -

 -

 4,343

4,343

Ordinary shares repurchased during the period

(41)

                       41

(992)

-

(992)

Dividends on ordinary shares (Note 4)

                  -

 -

 -

(3,936)

(3,936)

Unclaimed dividends

-

-

-

14

14

Capital profit

                  -

 -

35,221

 -

35,221

 

 

 

 

 

 

Net assets at 31 May 2017

             10,673

              5,327

322,622

14,362

352,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 31 May 2016

 

 

 

 

 

Net assets at 1 December 2015

          10,753

  5,247

244,075

 13,555

 273,630

Revenue profit

                  -

 -

 -

 3,806

 3,806

Ordinary shares repurchased during the period

(6)

                       6

(127)

-

(127)

Dividends on ordinary shares (Note 4)

                  -

 -

 -

(3,828)

(3,828)

Capital profit

                  -

 -

3,530

 -

 3,530

 

 

 

 

 

 

Net assets at 31 May 2016

             10,747

              5,253

247,478

13,533

277,011

 

 

 

 

 

 

 

 

 

 

 

CASH FLOW STATEMENT

 

 

 

 

Six months

 

Six months

 

 

 

Ended

 

Ended

 

 

 

31 May

 

31 May

 

 

 

2017

 

2016

 

 

 

£000's

 

£000's

Operating activities

 

 

 

 

 

Net profit before finance costs and taxation

 

 

         42,075

 

           9,816

Less: Net gains on investments at fair value through profit or loss

 

 

(37,381)

 

(5,548)

Add: Special dividends credited to capital

 

 

                  -

 

              850

Less : Net losses (gains) on foreign currency

 

 

                14

 

(27)

Less: Overseas tax suffered

 

 

(313)

 

(273)

Increase in other receivables

 

 

(242)

 

(172)

Increase (decrease) in other payables

 

 

                66

 

(9)

Purchase of fixed asset investments held at fair value through profit or loss

 

 

(36,253)

 

(28,883)

Sales of fixed asset investments held at fair value through profit or loss

 

 

           39,233

 

           33,213

Net cash inflow from operating activities

 

 

7,199

 

8,967

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Interest paid

 

 

(2,333)

 

(2,333)

Dividends paid on cumulative preference stock

 

 

(11)

 

(11)

Dividends paid on ordinary shares

 

 

(3,936)

 

(3,828)

Repurchase of ordinary shares for cancellation

 

 

(996)

 

(127)

Unclaimed dividends received

 

 

               14

 

-

Net cash outflow from financing activities

 

 

(7,262)

 

(6,299)

 

 

 

 

 

 

(Decrease) Increase in cash and cash equivalents

 

 

(63)

 

2,668

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at the start of the period

 

 

28,158

 

32,346

Effect of foreign exchange rates

 

 

(14)

 

27

Cash and cash equivalents at the end of the period

 

 

         28,081

 

        35,041

 

 

 

 

 

 

Comprising:

 

 

 

 

 

Cash at bank

 

 

28,081

 

35,041

 

 

 

 

 

 

 

 

 

NOTES

 

Note 1

 

The returns per ordinary share have been calculated using a weighted average number of shares in issue of 42,710,190 (31 May 2016: 42,994,658 shares).

 

Note 2

 

 

The total column of this statement is the profit and loss account of the company.

 

All revenue and capital items derive from continuing operations. No operations were acquired or discontinued in the period.

 

Purchases for the half year ended 31 May 2017 were £36,140,000 (31 May 2016: £28,993,000) and sales for the half year ended 31 May 2017 were £39,271,000 (31 May 2016: £33,213,000).

 

Included in the cost of investments are transaction costs on purchases which amounted to £79,000 (31 May 2016: £98,000) and transaction costs on sales which amounted to £28,000 (31 May 2016: £28,000).

 

Note 3

 

Investments are designated as held at fair value through profit or loss in accordance with FRS 102 sections 11 and 12.  Investments are initially recognised at fair value, which is determined to be their cost. Subsequently, investments are revalued at fair value which is the bid market price for listed investments.

 

FRS 102 as amended for fair value hierarchy disclosures (March 2016) sets out three fair value levels.

 

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date

 

Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e., developed using market data) for the asset or liability, either directly or indirectly

 

Level 3: Inputs are unobservable (i.e., for which market data is unavailable) for the asset or liability

 

As at 31 May 2017, the financial assets at fair value through profit and loss of £373,611,000 (30 November 2016: £339,322,000) are categorised as follows:         

 

 Six months

 

 Year ended

 

 ended

 

30 November

 

31 May 2017

 

2016

 

 £'000s

 

 £'000s

Level 1

373,583

 

339,294

Level 2

-

 

-

Level 3

28

 

28

 

373,611

 

339,322

 

 

Note 4

 

In accordance with section 32 FRS102 ' Events After the end of the Reporting Period', dividends declared after the end of the reporting period shall not be recognised as a liability.

 

Dividends payable on ordinary shares in respect of earnings for each period are as follows:

 

 

Six months ended

31 May 2017

£'000s

Six months ended

31 May 2016

£'000s

Year ended

30 November 2016

£'000s

 

Final dividend 5.90p paid 24 March 2017  (2016: 5.70p)

2,519

2,452

2,452

First quarterly dividend 3.30p paid 30 June 2016 (2015: 3.20p)

-

-

1,419

Second quarterly dividend 3.30p paid 19 September 2016 (2015: 3.20p)

-

-

1,419

Third quarterly dividend 3.30p paid 14 December 2016 (2015: 3.20p)

1,417

1,376

1,376

 

3,936

3,828

6,666

 

Dividends declared after the period end are not recognised as a liability under section 32 FRS 102 'Events after the end of the reporting period'. Details of these dividends are set out below.

 

 

Six months ended

31 May 2017

£'000s

 

Six months ended

31 May 2016

£'000s

 

Year ended

30 November 2016

£'000s

First quarterly dividend 3.50p payable 30 June 2017 (2016: 3.30p)

1,494

1,419

-

Second quarterly dividend 3.50p payable 20 September 2017 (2016: 3.30p)

1,494

1,419

-

Third quarterly dividend 3.20p

-

-

1,417

 Final dividend 5.90p

       -

       -

                2,519

 

2,988

2,838

3,936

 

 

The final and quarterly dividends above are based on the number of shares in issue at the period end. However, the dividend payable will be based upon the number of shares in issue on the record date and will reflect any purchase or cancellations of shares by the company settled subsequent to the period end.

 

 

Note 5

 

The directors believe it is appropriate to continue to adopt the going concern basis in preparing the financial statements, as the assets of the company consist mainly of securities which are readily realisable and accordingly, that the company has adequate financial resources to continue in operational existence for the foreseeable future.

 

Note 6

 

The half-yearly report has neither been audited nor reviewed by the company's auditors. The financial information for the year ended 30 November 2016 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies and restated by reference to the changes in accounting policies detailed above. The auditor's report on those accounts was unqualified and did not contain a statement under either section 498(2) or (3) of the Companies Act 2006.

 

The half-yearly financial report will be sent to shareholders in late July 2017 and will be available to members of the public from the company's registered office at 199 Bishopsgate, London EC2M 3TY.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Half-year Report - RNS