We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Establishment Investment Trust Plc | LSE:ET. | London | Ordinary Share | GB0031336919 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 217.00 | 212.00 | 222.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMET.
RNS Number : 2209G
Establishment Inv. Trust PLC (The)
19 November 2015
THE ESTABLISHMENT INVESTMENT TRUST PLC
Half-year financial report for the six months ended 30 September 2015
Objective of the Company
The investment objective of the Company is to achieve long-term capital growth from a managed international portfolio of securities. The preservation of capital is of primary importance to the investment objective.
The Company aims to achieve absolute returns and is not managed by reference to any equity or bond index or benchmark.
Investment Policy
-- To invest primarily in equities issued by companies listed on regulated markets. With the prior approval of the Board, the Company may invest in unlisted securities.
-- Up to 30% of net assets may be invested in investment products managed by the Company's Investment Manager. The Company may also hold positions in investment products managed by third parties.
-- Up to a maximum of 15% of net assets (at cost at the date of investment) may be invested in any one security.
-- The Company may borrow up to a maximum of 50% of net assets.
Financial Highlights
Performance comparisons 31 March 2015 - 30 September 2015
Hot Features
Premium
31 March 30 September
2015 2015 Change
Share price 178.0p 150.4p -15.5%
Net asset value 229.6p 201.5p -12.3%
FTSE WMA Stock Market Balanced
Index* -5.7%
MSCI UK Equity* -9.2%
MSCI AC World Equity* -10.9%
MSCI Japan Equity* -10.8%
MSCI Asia ex Japan Equity* -18.2%
* Total return in Sterling
Share Price performance relative to the Net Asset Value and FTSE WMA Stock Market Balanced Index from 1 October 2010 to 30 September 2015 (total return)
Chart - see Half year report on website
Chairman's Statement
The Company had a difficult first half in the current financial year. The net asset value ("NAV"), measured by total return, fell by 11.0% with the share price falling by 13.8%. For reference, the FTSE WMA Stock Market Balanced Index declined 5.7%. The bulk of the company's assets are invested throughout Asia, where markets sold off sharply with the MSCI Asia ex Japan Index dropping by 18.2%. The investments in UK stocks have provided useful balance to the portfolio.
The global investment landscape remains challenging. Continued quantitative easing programmes by the Bank of Japan and the European Central Bank have failed to produce a substantial revival in economic activity. The United States continues to grow steadily, but a lack of investment by the corporate sector suggests more rapid growth may remain elusive. The continuing deceleration of the Chinese economy is covered in the investment manager's report. The deflationary fallout has persuaded the Federal Reserve, and other central banks, to keep interest rates at record low levels. It is unlikely that China can replicate the huge economic expansion of the last 25 years over the next decade. Many of the positive forces of globalisation are now threatened by weak global growth leading to the danger of a rise in protectionism by the "back door" to secure national interests. Currency volatility and increased regulation and controls, particularly in stemming free flows of capital, are symptomatic of these threats, which have the potential to restrict liquidity flows and undermine stock market confidence.
After being battered since April, Asian stock markets have stabilised since the end of September. Valuations, including dividend yields, are back to attractive levels. Asia has defensive appeal given the level of indigenous economic growth. The investment manager continues to focus on investing in high quality, cash generative companies with strong balance sheets, which should deliver competitive returns, as a justification of their strategy of continuing commitment to Asia.
My predecessor Sir David Cooksey, retired at the last Annual General Meeting after 13 years on the board and the last 4 years as Chairman. I would like to thank Sir David for his immense contribution and wise counsel to the company over that period. Jim Ryall joined the Board as an independent non-executive director in July 2015. Jim has many years of experience in financial and investment markets, especially in Asia, and brings a useful blend of skills to the Board. Gregory Shenkman has succeeded me as Chairman of the Audit Committee.
The Board is disappointed that the discount to NAV is too wide; this should be addressed by better performance highlighting value in the shares.
The revenue return has improved relative to the first half of last year. An interim dividend of 1.9p has been declared payable on 21 December to those on the register at 4 December.
Harry Wells
Chairman
18 November 2015
Investment Manager's Report
During the first half of the Company's financial year, the share price fell by 15.5% while the net asset value declined 12.3%. A final dividend of 3.0p was paid to shareholders during the period. In total return terms, the share price and the net asset value declined 13.8% and 11.0% respectively. For comparative purposes, during this period, the FTSE WMA Stock Market Balanced Index fell 5.7%, the MSCI AC World Index declined 10.9%, the MSCI Japan Index retreated 10.8% and the MSCI AC Asia ex Japan Index suffered an 18.2% decline. The share price stood at an outsized 25.4% discount to the net asset value at 30 September 2015 although at the time of writing of this report the discount had narrowed to the high teens.
China
The precarious position of numerous sectors of the Chinese economy, the shenanigans in the local equity markets over the past few quarters, persistent capital outflows and the surprise "devaluation" of the Renminbi in August have ensured that China continues to steal the limelight in the Asian region for good reason.
In many respects little has changed - the Chinese industrial and property sectors remain hamstrung by the excessive leverage and excess capacity created during the post Global Financial Crisis credit boom. In the industrial sector, factory gate prices continue to decline at circa 5-6% per annum. While demand for property in the larger tier 1 and tier 2 cities appears to be reacting positively to easier monetary policy and the loosening of restrictions on mortgages, the situation in smaller tier 3, 4 and 5 cities - which collectively account for two thirds of national residential construction - remains markedly worse, with residential inventory available for sale standing at circa 30 months.
The recently reported third quarter 6.9% year on year increase in GDP was flattered by an extremely low GDP deflator of -0.7%. Nominal GDP growth is running at just 6.2% and, in a deflationary environment, it is nominal GDP that counts. Banks lend money and it is the nominal principal sum that needs to be serviced and eventually repaid. Unhelpfully, Chinese financial institutions remain opaque at best and continue to report implausibly low levels (1.5-2.0%) of non-performing loans ("NPLs"). Even the more bullish analysts believe true NPLs to be near 10%.
The investment conclusions from the above are straight forward. First, China's economic growth over the next decade will be considerably slower, driven by rising consumption and expansion in the service sector. Growth will be considerably less energy and commodity intensive and commodity prices will remain weak. Second, since the Chinese authorities retain control over the major financial institutions and (to state the obvious) the State Owned Enterprises that dominate the heavily indebted heavy industries, it is unlikely that there will be a crisis as such and more likely that there will be a "brokered" solution of the debt problem under the guise of SOE reform. Third, dividend declarations by Chinese financials over the next few years will disappoint investors. Indeed, funds might need to flow in the other direction.
The good news is that the service sector continues to thrive. Employment trends remain reasonably stable although these need to be monitored. It remains a difficult and competitive operating environment for consumer companies but we continue to believe in their long term growth prospects. Approximately 10% of the Company's assets are deployed in China. The stocks held in the portfolio are prodigious cash generators and have solid balance sheets.
Debt, Commodities and Emerging Markets
There has been much comment on the sizeable increase in debt within the emerging market universe since the Global Financial Crisis and, to the casual observer, the presumption might be that the emerging market asset class consists of nothing but highly leveraged commodity producers. While it is undoubtedly true that most Chinese property companies, several Indonesian coal producers and all Indian infrastructure companies have taken on excessive levels of debt (either local currency and/or US Dollars) we believe investors are missing the broader picture which is that the four largest emerging markets (Korea, Taiwan, China and India) accounting for over 60% of the universe are energy and commodity deficient economies. The terms of trade have moved decisively in favour of Asia and this is supporting growth in many areas of the region. While growth prospects for the export driven economies in the region remain uncertain, the more domestically orientated economies with encouraging demographic profiles continue to perform well. The Philippine economy, for example, has sailed serenely through the global economic slowdown driven by its dynamic domestic demand story. The Company's portfolio in the Asia excluding Japan region continues to focus on infrastructure, consumer and selected industrials.
(MORE TO FOLLOW) Dow Jones Newswires
November 19, 2015 02:00 ET (07:00 GMT)
Elsewhere the Japanese equity market has performed well. The weaker Yen has assisted profitability and, more importantly, there is real evidence that corporate Japan is increasingly focussed upon shareholder returns. The investments in the United Kingdom have produced reasonably steady returns and contributed significantly to the income account.
The Company retains a useful degree of liquidity (held in US Dollars) but the focus of the portfolio remains domestic Asia where powerful demographic trends are likely to see the region grow strongly over the next decade. Valuations seem to be reasonable from both a relative and historic perspective. This factor considerably improves the likelihood of decent capital appreciation in the years ahead.
Blackfriars Asset Management Limited
Investment Manager
18 November 2015
Income Statement
Six months ended Six months ended Year ended
30 September 2015 30 September 2014 31 March 2015
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ------ -------- --------- --------- -------- -------- -------- -------- -------- --------
Gains/(losses)
on
investments - (5,426) (5,426) - 3,086 3,086 - 4,599 4,599
Exchange gains/
(losses)
on
currency
balances - (46) (46) - 178 178 - 545 545
Income 5 776 - 776 471 - 471 1,080 - 1,080
Investment
management
fees (29) (115) (144) (30) (120) (150) (59) (236) (295)
Other expenses (151) - (151) (153) - (153) (272) - (272)
----------------- ------ -------- --------- --------- -------- -------- -------- -------- -------- --------
Return on
ordinary
activities
before tax 596 (5,587) (4,991) 288 3,144 3,432 749 4,908 5,657
Tax on ordinary
activities 7 (41) - (41) (40) - (40) (79) - (79)
----------------- ------ -------- --------- --------- -------- -------- -------- -------- -------- --------
Return on
ordinary
activities
after tax 555 (5,587) (5,032) 248 3,144 3,392 670 4,908 5,578
----------------- ------ -------- --------- --------- -------- -------- -------- -------- -------- --------
Return per
Ordinary
Share 8 2.78p (27.94)p (25.16)p 1.24p 15.72p 16.96p 3.35p 24.54p 27.89p
All revenue and capital items in the above statement derive from continuing operations.
The total columns in this statement represent the profit and loss accounts of the Company. The revenue and capital columns are supplementary to this and are prepared under the guidance published by the Association of Investment Companies.
A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.
Statement of Changes in Equity
For the six months ended 30 September 2015 (unaudited)
Share Share Capital Revenue
capital premium reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 March 2015 5,000 14,701 25,463 760 45,924
Return on ordinary activities
after
tax for the financial period - - (5,587) 555 (5,032)
Dividends paid - - (600) (600)
At 30 September 2015 5,000 14,701 19,876 715 40,292
------------------------------ ------- ------- ------- ------- -------
For the six months ended 30 September 2014 (unaudited)
Share Share Capital Revenue
capital premium reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 March 2014 5,000 14,701 20,555 1,030 41,286
Return on ordinary activities
after
tax for the financial period - - 3,144 248 3,392
Dividends paid - - - (560) (560)
At 30 September 2014 5,000 14,701 23,699 718 44,118
------------------------------ ------- ------- ------- ------- -------
For the year ended 31 March 2015 (audited)
Share Share Capital Revenue
capital premium reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 March 2014 5,000 14,701 20,555 1,030 41,286
Return on ordinary activities
after
tax for the financial year - - 4,908 670 5,578
Dividends paid - - - (940) (940)
At 31 March 2015 5,000 14,701 25,463 760 45,924
------------------------------ ------- ------- ------- ------- -------
Balance Sheet
30 September 30 September 31 March
2015 2014 2015
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Fixed assets
Investments held at fair
value
through profit or loss 34,848 38,137 42,311
Current assets
Debtors 65 189 1,080
Cash at bank 5,452 5,928 3,086
----------------------------- ------- -------------- -------------- -----------
5,517 6,117 4,166
Creditors: amounts falling
due within one year (73) (136) (553)
----------------------------- ------- -------------- -------------- -----------
Net current assets 5,444 5,981 3,613
Net assets 40,292 44,118 45,924
Capital and reserves
Called up share capital 5,000 5,000 5,000
Share premium 14,701 14,701 14,701
----------------------------- ------- -------------- -------------- -----------
19,701 19,701 19,701
Capital reserve 19,876 23,699 25,463
Revenue reserve 715 718 760
----------------------------- ------- -------------- -------------- -----------
Equity shareholders' funds 40,292 44,118 45,924
Net asset value per Ordinary
Share 6 201.46p 220.59p 229.62p
Cash Flow Statement
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2015 2014 2015
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
---------------------------------- ------ ------------- ------------- ----------
Net cash inflow from operating
activities 9 573 197 370
Taxation (41) (40) 71
Financial investment 2,477 286 (2,816)
---------------------------------- ------ ------------- ------------- ----------
Net cash inflow before financing 3,009 443 (2,375)
Equity dividends paid (600) (560) (940)
---------------------------------- ------ ------------- ------------- ----------
Increase/(decrease) in cash
in the year 2,409 (117) (3,315)
---------------------------------- ------ ------------- ------------- ----------
Reconciliation of net cash flow
to movement in net funds
Increase/(decrease) in cash
in the year 2,409 (117) (3,315)
Foreign exchange movements (43) 174 530
Opening net funds 3,086 5,871 5,871
---------------------------------- ------ ------------- ------------- ----------
Closing net funds 9 5,452 5,928 3,086
---------------------------------- ------ ------------- ------------- ----------
Notes to the Financial Statements
(MORE TO FOLLOW) Dow Jones Newswires
November 19, 2015 02:00 ET (07:00 GMT)
1. The half-yearly financial report for the six months ended 30 September 2015 (the "Report") has been prepared in accordance with FRS 104 Interim Financial Reporting and the Statement of Recommended Practice "Financial statements of investment trust companies" issued by the Association of Investment Companies in November 2014.
The Report is unaudited and does not include all of the information required for full annual financial statements. The Report should be read in conjunction with the annual report and financial statements of the Company for the year ended 31 March 2015. The accounting policies and presentation in the Report are consistent with those intended to be applied in the Annual Report for the year ending 31 March 2016.
The Report does not represent the Company's statutory accounts for the purposes of section 434 of the Companies Act 2006. The Report will be sent to shareholders and copies will be made available to the public at the registered office of the Company and will be available on the investment manager's website (www.blackfriarsam.com).
The Company conducts its affairs in a manner intended to meet the requirements for approval as an investment trust under section 1158 of the Corporation Tax 2010.
2. The financial information for the year ended 31 March 2015 included in the Report has been extracted from the Company's audited annual accounts for the year to 31 March 2015 which contained an unqualified audit report and did not include statements under Sections 498(2) or 498(3) of the Companies Act 2006. Those accounts have been filed with the Registrar of Companies.
3. Going concern
These financial statements have been prepared on a going concern basis. The following is a summary of the directors' assessment of the going concern status of the Company.
Operational resources
The majority of the net assets of the Company are securities which are traded on recognised stock exchanges. After considering the Company's current financial resources, the Directors are satisfied that its resources are adequate for continuing in business for the foreseeable future.
Continuation vote
As required under its Articles of Association, the Company will put forward a resolution for its continuation at the Annual General Meeting in 2016. If this resolution is not passed, the Board shall draw up proposals for the voluntary liquidation, unitization or other reorganization of the Company for the submission to the members of the Company by no later than 90 days after such a resolution is defeated.
4. Valuation of investments
The Company's investments have been designated at fair value through profit or loss, and are recognised on the trade date and are initially measured at fair value. Investments are measured at subsequent reporting dates at fair value, and changes in fair value are included in the Income Statement as a capital item. Investments are designated at fair value through profit or loss as they are managed in accordance with a documented investment strategy and their performance is evaluated on a fair value basis by the Board of Directors. For listed investments, fair value is deemed to be either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.
Unquoted investments are valued by the Directors at fair value. The Company held no unquoted investments at the period end.
5. Income
Six months Year ended
Six months ended ended 31 March
30 September 30 September
2015 2014 2015
GBP'000 GBP'000 GBP'000
(unaudited) (unaudited) (audited)
Income from investments
Overseas dividends 654 456 925
UK dividends 122 15 155
------------------------ ---------------- ------------- ----------
776 471 1,080
6. Net asset value per Ordinary Share
Six months Year ended
Six months ended ended 31 March
30 September 30 September
2015 2014 2015
(unaudited) (unaudited) (audited)
Net assets attributable GBP40,292,000 GBP44,118,000 GBP45,924,000
Ordinary Shares in issue
at the period end 20,000,000 20,000,000 20,000,000
----------------------------- ---------------- ------------- -------------
Net asset value per Ordinary
Share 201.46p 220.59p 229.62p
7. Taxation
The tax charge relates to overseas withholding tax incurred on income receivable.
8. Return per Ordinary Share
Six months ended Six months ended Year ended
30 September 30 September 31 March
2015 2014 2015
(unaudited) (unaudited) (audited)
Total return per Ordinary
Share
Total return GBP(5,032,000) GBP3,392,000 GBP5,578,000
Weighted average number of
Ordinary
Shares in issue during the
period 20,000,000 20,000,000 20,000,000
--------------------------- ---------------- ---------------- ------------
Total return per Ordinary
Share (25.16)p 16.96p 27.89p
--------------------------- ---------------- ---------------- ------------
The total return per Ordinary Share detailed above can be further analysed between revenue and capital, as below:
Revenue return per Ordinary Share Revenue return GBP555,000 GBP248,00 GBP670,000 Weighted average number of Ordinary Shares in issue during the period 20,000,000 20,000,000 20,000,000 ---------------------------- -------------- ------------ ------------ Revenue return per Ordinary Share 2.78p 1.24p 3.35p Capital return per Ordinary Share Capital return GBP(5,587,000) GBP3,144,000 GBP4,908,000 Weighted average number of Ordinary Shares in issue during the period 20,000,000 20,000,000 20,000,000 ---------------------------- -------------- ------------ ------------ Capital return per Ordinary Share (27.94)p 15.72p 24.54p ---------------------------- -------------- ------------ ------------ 9. Cash flow statement
(a) Reconciliation of operating profit to net cash inflow from operating activities
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------------------- ------------- ------------- -----------
Net return before taxation (4,991) 3,432 5,657
Losses/(gains) on investments
held at fair value 5,426 (3,086) (4,599)
(Gains)/losses on foreign
exchange movements 46 (174) (545)
(Increase)/decrease in other
debtors (10) - 2
Decrease/(increase) in accrued
income 113 (7) (126)
(Decrease)/increase in creditors (11) 32 (19)
---------------------------------- ------------- ------------- -----------
Net cash inflow from operating
activities 573 197 370
---------------------------------- ------------- ------------- -----------
(b) Financial investment
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------ ------------- ------------- -----------
Purchase of investments (3,647) (8,599) (28,319)
Sale of investments 6,124 8,885 25,503
Net cash flow from financial
investment 2,477 286 (2,816)
------------------------------ ------------- ------------- -----------
(c) Analysis of net funds
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------- ------------- ------------- -----------
Cash at bank 5,452 5,928 3,086
-------------- ------------- ------------- -----------
10. Interim dividend
(MORE TO FOLLOW) Dow Jones Newswires
November 19, 2015 02:00 ET (07:00 GMT)
The Directors have declared an interim dividend of 1.9p per Ordinary Share in respect of the year ending 31 March 2016. The shares will be quoted ex-dividend on 3 December 2015 and the dividend will be paid on 21 December 2015, to Shareholders on the register at the close of business on 4 December 2015.
11. Related party transactions
Fees payable to the Company's investment manager, Blackfriars Asset Management Limited ("Blackfriars") are shown in the Income Statement. At 30 September 2015, the fee accrual outstanding to Blackfriars was GBP20,704 (30 September 2014: GBP24.957).
Up to 30% of net assets may be invested in investment products managed by the Company's investment manager. At 30 September 2015, the aggregate amount invested in investment products managed by Blackfriars represented 13.8% of the Company's net assets. Blackfriars rebates management fees in respect of amounts invested in Blackfriars' investment products back to the Company.
Fees payable to the directors for the six months ended 30 September 2015 were GBP35,300 (six months ended 30 September 2014: GBP33,750). Fees were payable at an annual rate of GBP20,000 to the Chairman, GBP17,500 to the Chairman of the Audit Committee and GBP15,000 to the other directors. Tom Waring has waived his director's fees since the appointment of Blackfriars Asset Management Limited as investment manager to the Company.
The interests of the Directors in the Ordinary Shares of the Company on the dates shown were as follows:
Ordinary Shares of 25p each
At 30 Sep At 30 Sep At 31 March
2015 2014 2015
----------------------------- --------------- ---------- ------------
Jim Ryall (appointed 2 June - - -
2015)
Gregory Shenkman 3,415 3,415 3,415
Susan Thornton (a) 1,744,728 1,744,728 1,744,728
Tom Waring - - -
Harry Wells (b) 26,000 26,000 26,000
Harry Wells (c) 4,000 4,000 4,000
Sir David Cooksey (retired
7 July 2015) not applicable 50,000 50,000
(a) As a Trustee of The Thornton Foundation
(b) 11,000 held in SIPP and 15,000 in his own name
(c) As a Trustee of The Pauline Lamb Grandchildren's Trust
Susan Thornton also has an interest in 3,611,083 Ordinary Shares in her capacity as an executor of The Estate of Richard Thornton.
12. Classification of financial instruments
FRS 102 (see note 13) requires that the classification of financial instruments be valued by reference to the source of inputs used to derive the fair value. The classifications and their descriptions are below:
Level a
The best evidence of fair value is a quoted price for an identical asset in an active market. Quoted in an active market in this context means quoted prices are readily and regularly available and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted price is usually the current bid price.
Level b
When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the entity can demonstrate that the last transaction price is not a good estimate of fair value (eg because it reflects the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distress sale), that price is adjusted.
Level c
If the market for the asset is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, an entity estimates the fair value by using a valuation technique. The objective of using a valuation technique is to estimate what the transaction price would have been on the measurement date in an arm's length exchange motivated by normal business considerations.
The classification of the Company's investments held at fair value is detailed in the table below:
30 September 2015 30 September 2014
Level a Level b Level c Total Level a Level b Level c Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- -------- -------- -------- -------- --------
Investments 34,848 - - 34,848 37,979 - 158 38,137
-------- -------- -------- -------- -------- -------- -------- --------
34,848 - - 34,848 37,979 - 158 38,137
-------- -------- -------- -------- -------- -------- -------- --------
13. Impact of new accounting standards
The financial statements for the year ending 31 March 2016 will be prepared for the first time under FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland which is applicable to accounting periods beginning on, or after, 1 January 2015. This is not expected to have any significant impact on the financial statements other than minor changes to the presentation and terminology used in the accounts. There will be no material changes to the Company's accounting policies.
This half-yearly financial report has been prepared for the first time under FRS 104 Interim Financial Reporting which is applicable to accounting periods beginning on, or after, 1 January 2015. This has not had any significant impact on the half-yearly financial report other than minor changes to the presentation and terminology used in the accounts. There have been no material changes to the Company's accounting policies.
The profit or loss of the Company and the Company's equity for the six months ended 30 September 2014 and the year ended 31 March 2015 have not been affected by the introduction of the above standards.
14. Distributable reserves
The Company's distributable reserves consist of the capital reserve and revenue reserve.
The Company currently pays dividends from the revenue reserve but has the ability to pay dividends from the capital reserve.
Interim Management Report
The Directors are required to provide an Interim Management Report in accordance with the UK Listing Authority's Disclosure Rules and Transparency Rules and consider that the Chairman's Statement and the Investment Manager's Report on pages 4 to 6 of this Report, the following statement on related party transactions and the Directors' Responsibility Statement below, together constitute the Interim Management Report for the Company for the six months ended 30 September 2015.
The principal risks to the Company are in respect of foreign currency; interest rates; market prices; liquidity and credit risk. The Chairman's Statement and Investment Manager's Report set out uncertainties in respect of these and other risks to the Company, for the remaining six months of the current financial year.
The Directors confirm that no related party transactions were undertaken by the Company in the first six months of the current financial year. There have been no significant changes to the related party transactions described in the Annual Report of the Company for the year ended 31 March 2015.
The half-year financial report for the six months ended 30 September 2015 has not been reviewed by the Company's Auditors Grant Thornton UK LLP.
Directors' Responsibility Statement
The Directors confirm that to the best of their knowledge:
a) the condensed set of Financial Statements contained within the Half-yearly financial report has been prepared in accordance with the guidance issued by the Accounting Standards Board on "Half-yearly financial reports";
b) the Interim Management Report includes a fair review; as 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, their impact on the condensed set of Financial Statements and a description of the principal risks and perceived uncertainties for the remaining six months of the financial year; and
c) the Interim Management Report includes a fair review of the information concerning related parties transactions as required by Disclosure and Transparency Rule 4.2.8 R.
The half-year financial report for the six months ended 30 September 2015 and the above Directors' Responsibility Statement were approved by the Board on 18 November 2015.
Harry Wells
Chairman
Portfolio Holdings at 30 September 2015
(All Equity Shares unless otherwise stated)
% of
Fair value net
Holding Company GBP'000 assets
400,000 Blackfriars Oriental Focus Fund 'B' 5,575 13.84
147,000 National Grid 1,351 3.37
402,500 ITC 1,335 3.31
36,500 British American Tobacco 1,330 3.30
7,250,000 BTS Group 1,277 3.17
29,500 AstraZeneca 1,234 3.06
310,000 Zee Entertainment 1,228 3.05
92,000 GlaxoSmithKline 1,164 2.89
180,000 Siam City Cement 1,108 2.75
499,800 Samsonite International 1,074 2.67
31,000 Imperial Tobacco Group 1,056 2.62
7,020,000 Land & Houses 1,026 2.55
(MORE TO FOLLOW) Dow Jones Newswires
November 19, 2015 02:00 ET (07:00 GMT)
1 Year Establishment Investment Chart |
1 Month Establishment Investment Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
