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RNS

Half-year Report

Released 09:50 18-Jun-2019

RNS Number : 6123C
Henderson Opportunities Trust PLC
18 June 2019
 

HENDERSON INVESTMENT FUNDS LIMITED

 

HENDERSON OPPORTUNITIES TRUST PLC

 

LEGAL ENTITY IDENTIFIER (LEI):  2138005D884NPGHFQS77

 

18 June 2019

 

 

HENDERSON OPPORTUNITIES TRUST PLC

Unaudited results for the half year ended 30 April 2019

 

This announcement contains regulated information.

 

Investment Objective

The Company aims to achieve capital growth in excess of the FTSE All-Share Index from a portfolio of UK investments.

 

Performance Highlights

 

 

(Unaudited)

30 April 2019

(Unaudited)

30 April 2018

(Audited)

 31 October 2018

Net Asset Value (NAV) per ordinary share

1,232.6p

1,246.7p

1,179.4p

Ordinary share price

1,007.5p

1,032.5p

990.0p

Net Assets

£97.4m

£99.8m

£94.4m

Discount

18.3%

17.2%

16.1%

Total return per ordinary share

64.5p

(9.1p)

(70.0p)

Revenue return per ordinary share - basic and diluted

13.4p

10.0p

20.2p

Dividends per ordinary share

7.0p

6.5p

21.0p

Net Gearing¹

14.0%

13.4%

6.7%

 

1 The net gearing percentage reflects the amount of borrowings (bank loans or overdrafts) the Company has used to invest in the market less cash and investment cash funds, divided by net assets multiplied by 100.

 

 

Total Return Performance to 30 April 2019

(including dividends reinvested and excluding transaction costs)

 

 

6 Months

%

 

1 Year

%

 

3 Years

%

 

5 Years

%

NAV per ordinary share1

5.6

0.4

32.8

42.5

Benchmark2

6.4

2.6

33.3

35.2

Share price3

3.3

-0.4

29.1

22.0

Sector average NAV4

4.7

0.0

24.8

37.1

           

 

Sources: Morningstar for the AIC, Datastream and Janus Henderson

 

1. Net Asset Value (NAV) total return per ordinary share with income reinvested

2. FTSE All-Share Index total return

3. Share price total return using mid-market closing price

4. Average NAV of the AIC UK All Companies Sector with income reinvested

 

 

For further information, please contact:

 

 

 

James Henderson

Fund Manager

Janus Henderson Investors

Telephone: 020 7818 4370

Laura Foll

Fund Manager

Janus Henderson Investors

Telephone: 020 7818 6364

 

 

 

 

Peter Jones

Chairman

Henderson Opportunities Trust plc

Telephone: 020 7818 4082

Laura Thomas

Investment Trust PR Manager

Janus Henderson Investors

Telephone: 020 7818 2636

 

         
 

INTERIM MANAGEMENT REPORT

 

CHAIRMAN'S STATEMENT

 

Performance

The NAV total return over the first six months of the financial year increased by 5.6%, while the FTSE All-Share total return increased by 6.4%. It was a period in which large companies outperformed smaller companies due to general economic concerns and uncertainty over Brexit. Over five years or more the Company has a strong record against the benchmark, as illustrated in the following table:

 

 

1 year

%

3 years

%

5 years

%

10 years

%

NAV (total return)

0.4

32.8

42.5

361.1

FTSE All-Share (total return)

2.6

33.3

35.2

167.9

Outperformance (+)/ Underperformance (-)

-2.2

-0.5

+7.3

+193.2

 

The share price remained on a discount to NAV moving from 16.1% to 18.3% over the period.

 

Gearing

During the period the Fund Managers used the general weakness in equity prices inspired by uncertainty over the economy to refresh the portfolio by adding four new stocks. The Company was a net buyer of equities and the gearing moved up to 14.0% from 6.7% at the start of the period.

 

Earnings and Dividend

The revenue return in the period was £1,061,000, compared with £797,000 in the corresponding period last year.  An interim dividend of 7.0 pence per ordinary share (2018: 6.5 pence) has been declared payable on 20 September 2019 to shareholders on the register of the Company on 16 August 2019.  A noticeable feature of the half year was the level of income achieved by stock lending. This was £224,000 over the period compared to £nil over the corresponding period last year and £49,000 for the year ended 31 October 2018. Stock lending is a closely monitored activity with a cap on the amount of stock that can be lent. The Board considers that it represents low risk to the portfolio and provides useful income.

 

Share Capital

Since the year end, 99,670 ordinary shares have been bought back, under the authority given by shareholders at the Company's Annual General Meeting, at an average price of 937p each. The shares are being held in treasury.  We purchased these shares in order to enhance NAV marginally, it did this by 0.2%, at a time when the underlying shares in the portfolio appeared particularly oversold.  We will continue to be opportunistic in our approach to buybacks with the objective of increasing the NAV rather than reducing the discount, although that may be a secondary consequence. The Board believes that the discount is more likely to be reduced over time by strong investment performance and the marketing of the strengths of the Company.

 

Outlook

The UK economy continues to grow but at a subdued pace. This is in spite of the macroeconomic uncertainties, in particular the fear that Brexit would be detrimental for UK economic growth. Some of this is priced into UK equity prices and accounts for the fall of Sterling and the underperformance of the UK markets since the referendum.  A continuation of open trade across borders with Europe would be positive. There are UK companies that are trading on reasonable valuations and yet have strong growth prospects because of dynamic management teams, and such companies remain the focus of the portfolio.

 

Peter Jones

Chairman

18 June 2019

 

 


FUND MANAGERS' REPORT

 

Review

The net asset value of the portfolio grew 5.6% in the six months to the end of April, while the benchmark FTSE All-Share rose 6.4% (both on a total return basis). 

 

It was a difficult period for AIM which, having had a strong start to 2018, fell materially in the fourth quarter (-21.5%) before recovering and finishing virtually unchanged over the six months. As at the end of April, 58% of the portfolio is invested on AIM. While it is disappointing to be underperforming our benchmark the FTSE All-Share over the period, part of what we are trying to achieve is providing exposure to high growth companies on AIM but without the heightened volatility that was particularly evident in the fourth quarter. In this context we are pleased to have outperformed the AIM All-Share Index and continue to see excellent value in the underlying portfolio.

 

Portfolio Attribution

The largest contributor to performance over the six months was RWS Holdings, which provides specialist translation services for sectors such as pharmaceuticals. As it is one of the largest companies in the markets that it operates in, it has a significant scale advantage. For this reason it generates consistently good operating margins and is also generating double digit organic growth. While it has performed well and now trades on a higher valuation, we are happy to maintain the current position and it sits within the 'compounders' sleeve of excellent quality companies within the portfolio.

 

The largest detractor from performance was Zoo Digital, which provides dubbing and subtitling services for content producers such as Netflix and Disney. The key advantage of Zoo Digital versus traditional studios is that it allows freelance actors to record from home using Zoo's software. This provides content producers with quicker, but still good quality, translations that allow them to transmit content more quickly across the globe. The reason for the poor share price performance during the period was that legacy work that Zoo used to undertake in the DVD market has rolled over more steeply than expected. Their higher value dubbing work continues to grow well and their customer base is successfully expanding. The position was added to over the period as in our view the current valuation looks compelling and the investment thesis of substantially growing dubbing revenue has not changed.  As at 17 June 2019, the share price since the period end had recovered by 16.4%.

 

Portfolio Activity

Having brought the gearing down in summer last year we used the fourth quarter and beginning of 2019 to be net buyers and as a result the gearing rose back to 14.0%.  This net buying included adding to holdings that we had previously reduced earlier in 2018 having de-rated substantially. Examples of this included e-learning services provider Learning Technologies1 and Senior, an engineer of predominantly aerospace components (which was sold in entirety in early 2018 and subsequently repurchased).

 

The largest purchase during the period was RBS. This is a new holding in the portfolio, and as at the end of April was 1.1%. The legacy issues of RBS (such as PPI) are largely resolved, while the balance sheet has been significantly strengthened such that it has now material excess capital that we think is likely to be returned to shareholders via a series of special dividends and share buybacks.

 

The largest individual sale during the period was Faroe Petroleum, which received a cash offer at a significant premium to the undisturbed share price from DNO, a Norwegian oil & gas company. It is encouraging to see takeover interest returning in the UK market and another of the holdings, Dairy Crest, was taken over by a Canadian company who wished to gain access to some of their established brands, such as Cathedral City.

 

Outlook

Following a difficult fourth quarter of 2018, valuations particularly within AIM have been re-set and are now at what, in our view, are attractive levels. There is heightened political and macro-economic uncertainty but our focus as fund managers remains on finding relatively unknown but fast growing smaller companies and larger companies in the UK where sentiment has become overly pessimistic.

 

James Henderson and Laura Foll

Fund Managers              

18 June 2019

 

 

1 Data illustrating Learning Technologies' share price since first purchase is set out below

 

 

March

2017

June 2019

September 2017

December 2017

March 2018

June 2018

September 2018

December 2018

March 2019

Share Price

42.5p

45.5p

55.0p

68.0p

88.0p

112.0p

166.5p

69.4p

70.6p

 

(Reduced at 160p in September 2018 and added to at 76p in January 2019)

 

Source: Datastream

 

 

 

PRINCIPAL RISKS AND UNCERTAINTIES

 

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

 

•           investment activity and strategy;

•           financial instruments and the management of risk;

•           operational;

•           accounting, legal and regulatory;

•           liquidity;

•           net gearing; and

•           failure of Janus Henderson.

 

Detailed information on these risks is given in the Strategic Report and in the Notes to the Financial Statements in the Company's Annual Report for the year to 31 October 2018.

 

In the view of the Board, these principal risks and uncertainties were unchanged over the last six months and are as applicable to the remaining six months of the financial year as they were to the six months under review.

 

 

 

Directors' Responsibility Statement

 

The Directors confirm that, to the best of their knowledge:

 

(a)       the condensed financial statements for the half year ended 30 April 2019 have been prepared in accordance with "FRS 104 Interim Financial Reporting";

 

(b)       this report includes a fair review of the information required by the Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

 

(c)       this report and the condensed financial statements include a fair review of the information required by the Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

 

 

 

For and on behalf of the Board

Peter Jones

Chairman

18 June 2019

 

 

 

INVESTMENT PORTFOLIO at 30 April 2019

 

Company

Valuation

£'000

Portfolio %

 

  Company

Valuation

£'000

Portfolio %

Blue Prism¹

RWS¹

Serica Energy¹

Tracsis¹

Loopup¹

HSBC

Johnson Matthey

Boku¹

Rolls Royce

Rio Tinto

10 Largest

Keyword Studios¹

Prudential

Sigmaroc¹

Ricardo

Learning Technologies¹

Oxford Instruments

Eland Oil & Gas¹

Assura

Flowtech¹

Springfield Properties¹

20 Largest

Tarsus

Workspace

Aveva

SDL

Standard Chartered

XP Power

4D Pharma¹

Zoo Digital¹

Integrafin

The Gym Group

30 Largest

Next Fifteen Communications¹

Character¹

Cohort¹

Miton¹

Vodafone

Redde¹

Tribal¹

Royal Bank of Scotland

GB Group¹

Fastjet¹

40 Largest

Direct Line Insurance

Vertu Motors¹

IQGEO¹

Hollywood Bowl

Gateley¹

Ceres Power¹

Premier Oil

Horizon Discovery¹

Keystone Law¹

Franchise Brands¹

50 Largest

 

5,260

4,981

4,752

3,200

2,931

2,706

2,670

2,486

2,287

2,232

33,505

2,180

2,169

2,162

2,150

2,099

2,092

2,018

1,960

1,742

1,723

53,800

1,721

1,680

1,672

1,635

1,610

1,608

1,501

1,474

1,451

1,451

69,603

1,450

1,400

1,323

1,260

1,207

1,204

1,198

1,198

1,190

1,172

82,205

1,153

1,132

1,100

1,023

932

909

861

857

855

855

91,882

 

4.8

4.5

4.3

2.9

2.6

2.4

2.4

2.2

2.1

2.0

30.2

2.0

2.0

1.9

1.9

1.9

1.9

1.8

1.8

1.6

1.5

48.5

1.5

1.5

1.5

1.5

1.5

1.5

1.4

1.3

1.3

1.3

62.8

1.3

1.2

1.2

1.1

1.1

1.1

1.1

1.1

1.1

1.0

74.1

1.0

1.0

1.0

0.9

0.9

0.8

0.8

0.8

0.8

0.8

82.9

 

 

Redcentric¹

Mondi

IP Group

Senior

IDOX¹

Eurocell

Quixant¹

Creo Medical¹

Oxford Biodynamics¹

Findel

60 Largest

Lloyds Banking Group

IQE¹

BT Group

Van Elle¹

Ebiquity¹

Aggregated Micro Power¹

International Consolidated Airlines

Ilika¹

IG Group

Surface Transforms¹

70 Largest

21 Remaining (excluding cash and investments written down to zero)

Total

 

 

 

841

840

832

811

771

752

719

658

654

645

99,405

626

597

573

550

550

544

540

540

510

473

104,908

5,969

 

 

110,877

 

0.8

0.8

0.7

0.7

0.7

0.7

0.6

0.6

0.6

0.6

89.7

0.6

0.5

0.5

0.5

0.5

0.5

0.5

0.5

0.4

0.4

94.6

5.4

 

 

100.0

 

 

 

 

 

 

 

 

 

 

 

¹ Quoted on the Alternative Investment Market ('AIM')

 

We have one unlisted holding, Oxford Sciences Innovation, which was 0.4% of the portfolio as at the period end. 

 

 

 

Attribution Analysis to 30 April 2019

 

The table below sets out the top five contributors and top five detractors to NAV

 

Top Five Contributors          

Share Price

Return %

Contribution

to NAV %

RWS

+28.0

+1.0

Serica Energy

+20.1

+1.0

Fastjet

+77.7

+0.6

Rio Tinto

+26.4

+0.5

Integrafin

+49.6

+0.5

       

 

Top Five Detractors    

Share Price

Return %

Contribution

to NAV %

Zoo Digital

-50.3

-0.8

Learning Technologies

-21.4

-0.6

Redde

-28.8

-0.5

The Gym Group

-22.3

-0.5

IQGEO

-27.6

-0.5

 

Source: Janus Henderson

 

Portfolio by Index at 30 April 2019

As a percentage of the investment portfolio excluding cash

 

Index

FTSE All-Share Index %

Portfolio

 %

FTSE 100

80.7

17.7

FTSE 250

15.7

9.0

FTSE SMALLCAP

3.6

11.3

FTSE FLEDGLING

0.0

0.4

FTSE AIM

0.0

58.1

OTHER

0.0

3.5

 

 

 

Total

100.0

100.0

 

Source: Factset

 

Portfolio by Market Capitalisation at 30 April 2019

As a percentage of the investment portfolio excluding cash

 

Index

FTSE All-Share Index %

Portfolio

%

Greater than £2bn

88.7

19.2

£1bn - £2bn

5.3

15.1

£500m - £1bn

3.3

10.5

£200m - £500m

2.3

20.4

£100m - £200m

0.4

17.6

£50m - £100m

0.0

7.8

Less than £50m

0.0

9.0

Other

0.0

0.4

 

 

 

Total

100.0

100.0

 

Source: Factset

 

 

 

CONDENSED INCOME STATEMENT

 

 

(Unaudited)

Half Year ended

30 April 2019

(Unaudited)

Half Year ended

30 April 2018

(Audited)

Year ended

31 October 2018

 

Revenue  return £'000

Capital return £'000

Total £'000

Revenue  return £'000

Capital return £'000

Total £'000

Revenue return £'000

Capital return £'000

Total £'000

Gains/(losses) from investments held at fair value through profit or loss                         

-

4,277

-

(1,256)

(1,256)

-

(6,669)

(6,669)

Investment income

held at fair value through

profit or loss         

1,095

-

1,095

1,058

-

1,058

2,097

-

2,097

Interest receivable

and other income               

228

-

228

9

-

9

74

-

74

Gross revenue and

capital gains/(losses)

1,323

4,277

5,600

1,067

(1,256)

(189)

2,171

(6,669)

(4,498)

 

Management fee (note 2)

(71)

(166)

(237)

(80)

(185)

(265)

(165)

(386)

(551)

Administrative expenses

(167)

-

(167)

(153)

-

(153)

(319)

-

(319)

 

Net return/(loss) before finance costs and taxation

1,085

4,111

834

(1,441)

(607)

1,687

(7,055)

(5,368)

Finance costs

(23)

(54)

(77)

(36)

(85)

(121)

(69)

(160)

(229)

 

Net return/(loss) before taxation  

1,062

4,057

798

(1,526)

(728)

1,618

(7,215)

(5,597)

Taxation on net return

(1)

-

(1)

(1)

-

(1)

(2)

-

(2)

 

Net return/(loss)  after taxation

1,061

4,057

5,118

797

(1,526)

(729)

1,616

(7,215)

(5,599)

 

Return/(loss) per ordinary share - basic and diluted (note 4)

13.36p

51.11p

64.47p

9.96p

(19.07p)

(9.11p)

20.20p

(90.18p)

(69.98p)

 

The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104.

 

All revenue and capital items in the above statement derive from continuing operations. The revenue and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. The Company had no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity. The accompanying notes are an integral part of the condensed financial statements.

 

 


CONDENSED STATEMENT OF CHANGES IN EQUITY

 

 

(Unaudited)

Half Year ended 30 April 2019

 

Called up share capital  £'000

 

Share premium account £'000

 

Capital redemption reserve £'000

 

 

Other capital reserves

£'000

 

 

Revenue reserve £'000

 

Total shareholders' funds

£'000

At 1 November 2018

2,000

14,838

2,431

72,334

2,757

94,360

Ordinary dividends paid

-

-

-

-

(1,146)

(1,146)

Net return after taxation

-

-

-

4,057

1,061

5,118

Buyback of ordinary shares into treasury

-

-

-

(939)

-

(939)

At 30 April 2019

2,000

14,838

2,431

75,452

2,672

97,393

 

 

 

(Unaudited)

Half Year ended 30 April 2018

 

Called up share capital  £'000

 

Share premium account

£'000

 

Capital redemption reserve

£'000

 

Other capital reserves

£'000

 

 

Revenue reserve £'000

 

Total shareholders' funds

£'000

At 1 November 2017

2,000

14,838

2,431

79,549

2,781

101,599

Ordinary dividends paid

-

-

-

-

(1,120)

(1,120)

Net (loss)/return after taxation

-

-

-

(1,526)

797

(729)

At 30 April 2018

2,000

14,838

2,431

78,023

2,458

99,750

 

 

 

(Audited)

Year ended 31 October 2018

 

Called up share capital  £'000

 

Share premium account

£'000

 

Capital redemption reserve

£'000

 

Other capital reserves  £'000

 

 

Revenue reserve £'000

 

Total shareholders' funds

£'000

At 1 November 2017

2,000

14,838

2,431

79,549

2,781

101,599

Ordinary dividends paid

-

-

-

-

(1,640)

(1,640)

Net (loss)/return after taxation

-

-

-

(7,215)

1,616

(5,599)

At 31 October 2018

2,000

14,838

2,431

72,334

2,757

94,360

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

CONDENSED STATEMENT OF FINANCIAL POSITION

 

 

(Unaudited)

30 April 2019

£'000

(Unaudited)

30 April 2018

£'000

(Audited)

31 October 2018 £'000

Investments held at fair value through profit or loss

 

 

 

Listed at market value

44,347

44,665

35,971

Quoted on AIM at market value

66,130

68,137

65,319

Unlisted at market value

400

400

400

 

110,877

113,202

101,690

Current assets

 

 

 

Investments held at fair value through profit or loss

2

2

2

Debtors

579

254

147

Cash at bank and in hand

935

212

707

 

1,516

468

856

 

 

 

 

Creditors: amounts falling due within one year

 

 

 

Bank loans

(14,552)

(13,540)

(7,001)

Other creditors

(448)

(380)

(1,185)

 

 

 

 

Net current liabilities

(13,484)

(13,452)

(7,330)

 

 

 

 

Net assets

97,393

99,750

94,360

 

 

 

 

Capital and reserves

 

 

 

Called up share capital (note 6)

2,000

2,000

2,000

Share premium account

14,838

14,838

14,838

Capital redemption reserve

2,431

2,431

2,431

Other capital reserves

75,452

78,023

72,334

Revenue reserves

2,672

2,458

2,757

 

 

 

 

 

Total shareholders' funds

97,393

 

                      99,750

94,360

 

 

 

 

Net asset value per ordinary share - basic and diluted (note 7)

 

1,232.6p

 

1,246.7p

1,179.4p

 

 

 

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 

 

 

CONDENSED STATEMENT OF CASH FLOWS

 

 

(Unaudited)

Half Year ended

30 April 2019

£'000

(Unaudited)

Half Year ended

30 April 2018

£'000

(Audited)

Year ended

31 October 2018

£'000

Cash flows from operating activities

 

 

 

Net return/(loss) before taxation

5,119

(728)

(5,597)

Add back: finance costs

77

121

229

Add: (gains)/losses on investments held at fair value through profit or loss

(4,277)

1,256

6,669

Withholding tax on dividends deducted at source

(2)

(2)

(1)

(Increase)/decrease in debtors

(203)

(43)

62

Decrease in creditors

(34)

(918)

(899)

 

 

 

 

Net cash inflow/(outflow) from operating activities

680

(314)

463

 

 

 

 

Cash flows from investing activities

 

 

 

Purchase of investments

(15,115)

(13,304)

(30,932)

Sale of investments

9,268

15,021

39,550

Net cash (outflow)/inflow from investing activities

(5,847)

1,717

8,618

 

 

 

 

Cash flows from financing activities

 

 

 

Equity dividends paid (net of refund or unclaimed distributions and reclaimed distributions)

(1,146)

(1,120)

(1,640)

Buyback of ordinary shares into treasury

(939)

-

-

Net loans drawn down/(repaid)

7,551

(1,085)

(7,624)

Interest paid

(71)

(109)

(233)

Net cash inflow/(outflow) from financing activities

5,395

(2,314)

(9,497)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

228

(911)

(416)

 

 

 

 

Cash and cash equivalents at start of year

707

1,123

1,123

 

 

 

 

Cash and cash equivalents at end of period

935

212

707

 

 

 

 

 

 

 

 

Comprising:

 

 

 

Cash at bank

935

212

707

 

 

 

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 

 

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

 

1

Accounting policies - basis of preparation

 

The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", which was updated by the Association of Investment Companies in February 2018 with consequential amendments.

 

For the period under review, the Company's accounting policies have not varied from those described in the annual report for the year ended 31 October 2018. These financial statements have been neither audited nor reviewed by the Company's auditors.

 

2

Expenses: management fees and performance fees

 

Henderson Investment Funds Limited ("HIFL") is appointed to act as the Company's Alternative Investment Fund Manager. HIFL delegates investment management services to Henderson Global Investors Limited. References to the Manager within these results refer to the services provided by both entities. The management fee is calculated, quarterly in arrears, as 0.55% per annum on the net assets. Arrangements are in place for the Manager to earn a performance fee. The cap on total fees that can be earned in a financial year is 1.5% of the average net assets over the year. There is no performance fee accrual for the current period (30 April 2018: and 31 October 2018: £nil). Since 1 November 2013, the Company has allocated 70% of its management fees and finance costs to the capital return of the Income Statement with the remaining 30% being allocated to the revenue return. Performance fees payable are allocated 100% to the capital return.

 

3

Dividends

 

The Board has declared an interim dividend of 7.0 p per ordinary share (2018: 6.5p), to be paid out of revenue  on 20 September 2019 to shareholders on the register of the Company at the close of business on 16 August 2019. The Company's shares will be quoted ex-dividend on 15 August 2019. Based on the number of ordinary shares in issue on 18 June 2019, the cost of this dividend will be £553,000.

 

No provision has been made for the interim dividend in these condensed financial statements. The final dividend of 14.5p per ordinary share, paid on 22 March 2019 in respect of the year ended 31 October 2018, has been recognised as a distribution in this period.

 

4

Return per ordinary share - basic and diluted

 

(Unaudited)

Half Year ended

30 April 2019

£'000

(Unaudited)

Half Year ended

30 April 2018

£'000

(Audited)

Year ended

31 October 2018

£'000

The return per ordinary share is based on the following figures:

 

 

 

 

Revenue return

1,061

797

1,616

Capital return/(loss)

4,057

(1,526)

(7,215)

Total return/(loss)

5,118

(729)

(5,599)

 

 

 

 

Weighted average number of ordinary shares in issue for the period

7,938,225

8,000,858

8,000,858

 

 

 

 

Revenue return per ordinary share

13.36p

9.96p

20.20p

Capital return/(loss)per ordinary share

51.11p

(19.07p)

(90.18p)

Total return/(loss)per ordinary share

64.47p

(9.11p)

(69.98p)

 

 

 

5

Investments held at fair value through profit or loss

 

The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on the valuation techniques used and are defined as follows under FRS 102:                                        

Level 1: valued using quoted prices in active markets for identical assets                                       

Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in Level 1                                                                              

Level 3: valued by reference to valuation techniques using inputs that are not based on observable market date

                       

Investments held at fair value through profit or loss at 30 April 2019 (unaudited)

Level 1

£'000

Level 2

£'000

Level 3

£'000

Total

£'000

Investments

110,477

-

400

110,877

Current asset investments

2

-

-

2

Total

110,479

-

400

110,879

 

Investments held at fair value through profit or loss at 30 April 2018 (unaudited)

Level 1

£'000

Level 2

£'000

Level 3

£'000

Total

£'000

Investments

112,802

-

400

113,202

Current asset investments

2

-

-

2

Total

112,804

-

400

113,204

 

Investments held at fair value through profit or loss at 31 October 2018 (audited)

Level 1

£'000

Level 2

£'000

Level 3

£'000

Total

£'000

Investments

101,290

-

400

101,690

Current asset investments

2

-

-

2

Total

101,292

-

400

101,692

 

 

 

 

 

 

There have been no transfers between levels of the fair value hierarchy during the period.

 

The valuation techniques used by the Company are explained in the accounting policies note in the Company's Annual Report for the year ended 31 October 2018.

 

6

Called up share capital

 

During the period ended 30 April 2019, 99,670 shares were repurchased to be held in treasury at a cost of £939,000 (half year ended 30 April 2018 and year ended 31 October 2018: no shares repurchased or issued).  At 30 April 2019 there were 8,000,858 ordinary shares of 25p each in issue (30 April 2018 and 31 October 2018: 8,000,858) of which 99,670 were held in treasury (30 April 2018 and 31 October 2018: no shares held in treasury) resulting in 7,901,188 shares being entitled to a dividend (30 April 2018 and 31 October 2018: 8,000,858). 

 

7

Net asset value per ordinary share - basic and diluted

 

Net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £97,393,000 (30 April 2018: £99,750,000; 31 October 2018: £94,360,000) and on the 7,901,188 ordinary shares of 25p each in issue at 30 April 2019 (half year ended 30 April 2018: 8,000,858; year ended 31 October 2018: 8,000,858).

 

8

Transaction costs

 

Purchase transaction costs for the half-year ended 30 April 2019 were £43,000 (30 April 2018: £11,000; 31 October 2018: £40,000); these comprise mainly stamp duty and commissions. Sale transaction costs for the half-year ended 30 April 2019 were £4,000 (30 April 2018: £6,000; 31 October 2018: £18,000); these comprise mainly commissions.

 

9

Related party transactions

 

The Company's transactions with related parties in the period were with the Directors, and the Manager. There have been no material transactions between the Company and its Directors during the half year and the only amounts paid to them were in respect of expenses and remuneration for which there are no outstanding amounts payable at the half year period end.

 

In relation to the provision of services by the Manager, other than fees payable by the Company in the ordinary course of business and the facilitation of marketing activities with third parties, there have been no material transactions with the Manager affecting the financial position of the Company during the half year period.

 

10

Going concern

 

The Company's Articles of Association require that at the Annual General Meeting of the Company held in 2008, and every third year thereafter, an ordinary resolution be put to approve the continuation of the Company. The resolutions put to the Annual General Meetings in 2011, 2014 and in 2017 were duly passed. The next triennial continuation resolution will be put to the Annual General Meeting in 2020. The assets of the Company consist almost entirely of securities that are listed (or quoted on AIM) and are readily realisable. Accordingly, the Directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Directors considered it appropriate to adopt the going concern basis of accounting in preparing the financial statements. 

 

11

General information

 

Company Status:

Henderson Opportunities Trust plc is registered in England and Wales No. 01940906, has its registered office at 201 Bishopsgate, London EC2M 3AE and is listed on the London Stock Exchange.

 

SEDOL/ISIN: 0853657

London Stock Exchange (TIDM) Code: HOT

Global Intermediary Identification Number (GIIN): LVAHJH.99999.SL.826

Legal Entity Identifier (LEI): 2138005D884NPGHFQS77

 

Directors and Corporate Secretary:

The Directors of the Company are Peter Jones (Chairman), Frances Daley (Audit Committee Chairman), Chris Hills, Malcolm King and Wendy Colquhoun. The Corporate Secretary is Henderson Secretarial Services Limited, represented by Melanie Stoner, FCIS.

 

Website:

Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonopportunitiestrust.com.

 

12

Comparative information

 

The financial information contained in the half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half year periods ended 30 April 2019 and 30 April 2018 has not been audited or reviewed by the Company's auditors. The figures and financial information for the year ended 31 October 2018 are an extract based on the latest published accounts and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors, which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

 

13

Half Year Report

 

The Half Year Report will be available in typed format on the Company's website, www.hendersonopportunitiestrust.com, or from the Company's registered office, 201 Bishopsgate, London EC2M 3AE. An abbreviated version, the 'Update', will be circulated to shareholders in June.

         

 

 

Neither the contents of the Company's website not the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.


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 rns@lseg.com or visit www.rns.com.
 
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Half-year Report - RNS