We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Henderson Opportunities Trust Plc | LSE:HOT | London | Ordinary Share | GB00BSHRGN41 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.50 | -0.22% | 223.50 | 220.00 | 227.00 | 227.00 | 221.00 | 221.00 | 44,888 | 16:35:16 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Trust,ex Ed,religious,charty | -32.19M | -33.55M | -0.8495 | -2.67 | 89.65M |
From May 2019 to May 2024
TIDMHOT
RNS Number : 1544O
Henderson Opportunities Trust PLC
04 February 2016
HENDERSON OPPORTUNITIES TRUST PLC
Annual Report for the year ended 31 October 2015
This announcement contains regulated information
Chairman's Comment
"The NAV total return was 13.5% in the year. Our benchmark, the FTSE All-Share returned 2.9%. Over the long term the NAV total return and share price performance continue to be excellent. The proposed final dividend is 13.0p giving a total for the year of 18.0p, an increase of 44%.
In the currently volatile market conditions, we will continue to focus on a diverse portfolio of strong companies whose valuations do not reflect their potential, an approach that has served us well over many years."
George Burnett, Chairman
Total Return Performance (including dividends reinvested)
Hot Features
Premium
1 year 3 years 5 years
% % %
Share Price (1) 6.3 98.6 129.1
Net asset value per ordinary
share (2) 13.5 72.7 102.8
AIC UK All Companies Sector
(Peer Group) Average - net
asset value (3) 15.4 58.9 82.6
FTSE All-Share Index 2.9 27.4 40.9
(1) Source: Morningstar for the AIC
(2) Source: Morningstar for the AIC using cum income fair Value NAV
(3) Size weighted average (shareholders' funds)
Performance Highlights
Year ended Year ended
31 October 31 October
2015 2014
Share price total return(1) 6.3% 9.3%
NAV per share at year end 1,012.5p 903.7p
Dividend for the year(2) 18.0p 12.5p
Net gearing at year end 18.3% 14.3%
Share price at year end 910.3p 869.5p
Total return per share 122.6p 30.2p
Dividend yield(3) 2.0% 1.4%
Discount at year end(4) 10.1% 3.8%
1 Share price total return using mid-market closing price
2 2015 total dividend is subject to approval of the final dividend at the AGM
3 Based on the share price at the year end
4 Calculated using published daily NAVs including current year revenue
Sources: Morningstar for the AIC, Henderson, Datastream
Chairman's Statement
Review of Performance
The Net Asset Value ('NAV') total return for the year ended 31 October 2015 was 13.5%, while the FTSE All-Share, our benchmark, returned 2.9%. As in the previous year, the Company had a stronger first half than second, as a result of market volatility. In both six month periods the Company outperformed the benchmark. The share price total return in the year under review was 6.3%, which, while comfortably ahead of our benchmark, lagged the NAV total return as discounts widened across the sector, reflecting general investor uncertainty. Over the longer term, the NAV and share price total return performance has continued to be excellent, as shown in the table below:
3 years 5 years
-------------------- -------- --------
FTSE All-Share
(total return) 27.4% 40.9%
-------------------- -------- --------
NAV (total return) 72.7% 102.8%
-------------------- -------- --------
Share price (total
return) 98.6% 129.1%
-------------------- -------- --------
Earnings & Dividends
The revenue return was 22.51p compared with 15.17p last year. The final dividend, subject to shareholder approval, of 13.0p will be payable on 24 March 2016 to Shareholders on the Register of Members on 12 February 2016. The shares will be marked ex-dividend on 11 February 2016. The total dividend for the year is 18.0p an increase of 44% on the previous year. Dividends received have been increasing as a result of the improved profits and strong balance sheets of the companies in the portfolio and it is expected that this good dividend growth will continue. In consequence, the Board is optimistic that our progressive dividend policy seen in recent years can be maintained.
Fees & Expenses
The ongoing charge excluding the performance fee for the year is 1.02% of the daily average net assets over the year. This is the same as in 2014. The ongoing charge including the performance fee is 1.96%, compared with 1.22% in 2014. The performance fee payable to Henderson is GBP765,000 which equates to 0.94% of average net assets, reflecting performance that was comfortably ahead of the benchmark. This is the maximum allowed under the current agreement.
Following a review, the Board and Henderson have agreed a revised, and reduced, fee basis effective from 1 November 2015. The base management fee will now be charged at a rate of 0.55% of net assets per annum (previously 0.60% per annum on the first GBP100 million of net chargeable assets - effectively gross assets - and 0.50% per annum thereafter). The existing performance fee arrangements have been retained. The cap on total fees that can be earned in any financial year is now 1.5% of the average net assets over the year (previously capped at 1.65%). Although this is a related party transaction, under the Listing Rules (11.1.10) it is not necessary to seek shareholder approval for the change in fees, given the nature of the transaction. Full details of the fee arrangements can be found on page 6 of the Annual Report.
Continuation Vote
On 29 April 2014 the continuation vote was passed by a large majority. The next one will be in 2017 in line with our three year cycle.
Buy-Backs and Share Issuance
There were no buy-backs carried out during the year nor were any shares issued.
AGM
Our Annual General Meeting will be held at 2.30pm on 17 March 2016 at the registered office, 201 Bishopsgate, London EC2M 3AE. The Notice of Meeting is set out in the separate circular to shareholders that accompanies this Annual Report. The Directors will vote their own shareholdings in favour of all the resolutions to be put to the AGM and the Directors recommend that shareholders support all the resolutions. In addition to the formal business of the meeting, the Fund Managers, James Henderson and Colin Hughes, will give a presentation following which afternoon tea will be served.
Investment Strategy
The objective of our Fund Managers is to find and hold stocks that are good businesses with attractive valuations, diverse customer bases and sound prospects, capable of delivering substantial growth over time. These companies will be found across the market capitalisation range but there will usually be a focus on smaller companies, many of which are overlooked or under researched and therefore offer greater potential for performance in the longer term. Your Board believes that a major contributor to the strong performance over the last five years has been the effectiveness of the Fund Managers' stock picking and the fact that they spend a great deal of time researching and meeting with investee companies, which includes 400-500 face to face meetings each year.
Gearing
The net gearing has been in the range from 13%-20% of net assets during the year. At the year end, the net gearing was 18.3%. The intention is to retain a reasonable level of gearing while there are good investment opportunities and valuations are undemanding. Although the bias of the portfolio is to smaller and medium sized companies, we monitor the relative liquidity of the portfolio to ensure that gearing levels can be quickly adjusted whether for opportunistic or defensive reasons.
The Board
As part of our succession planning, we welcomed Frances Daley to the Board in June 2015. Frances comes with a wealth of knowledge gained in the financial and commercial sectors, as well as current investment trust experience. I have indicated to the Board my intention to stand down as Chairman with effect from the conclusion of the upcoming AGM. I am pleased to report that my colleagues have chosen Peter Jones to succeed me as Chairman and I wish Peter every success in his new role. On my departure the Board will revert to having five Directors.
I should like to place on record my appreciation of my Board colleagues for their diligence, their independence of thought and their consistent focus on the best interests of the Company. It has been a pleasure to work with them.
Outlook
The macroeconomic picture is being fiercely debated by investors. Some see the first signs of inflation picking up and the need for interest rates to rise, while others hold the opposite view that over capacity will ensure inflation remains subdued and corporate profit margins will fall. Our Fund Managers do not think they can add value by debating economics and believe their time is better spent focussing on individual strong companies with excellent technology, products and services which will be navigated through any economic turbulence by their good management. We believe that companies with these attributes are well represented in the portfolio and their valuations do not reflect their potential.
This approach will mean that the portfolio is never immune from bouts of relative weakness as a combination of disappointing performance by a handful of companies in our relatively long list and macro-economic worries make investors risk averse. We have since the year end experienced such a period with the NAV falling 10.3% from 31 October 2015 to 1 February, while the FTSE All-Share has fallen 4.1%. However, it is an approach that has served shareholders well over many years and we believe will continue to do so as good corporate results in aggregate come through.
I commend to you our Fund Managers James and Colin, whose enthusiasm and dedication to the Company's interests, combined with their excellent, often contrarian, stock picking skills have produced such strong long term performance.
February 04, 2016 12:40 ET (17:40 GMT)
in a sharply downwards trend and our purchases have not contributed to NAV growth yet. In fact they have been negative. However, we remain of the view that the multi-year bear market in commodities and the share prices of producers will bottom out.
Our next largest purchase was HSBC, the global bank, headquartered in the UK but with a major presence in the Far East as well as a successful UK operation. HSBC has been under a cloud as it has been re-organising itself after the financial crisis, which it weathered well with no Government assistance. It is seeking a higher return on its capital and simultaneously trying to shrink its operating network. Add to this the current state of confusion over the bank's future domicile and it is easy to see why the shares have been lacklustre performers in the year but it offers an attractive valuation for those willing to be patient.
We have added a direct investment in Ilika to the indirect one we own via IP. This company is an innovator in advanced materials for the electronics and energy industries and has developed world leading processes in solid state battery technology, working with Toyota since 2008. In 2014, the company announced a world first in producing a multi layered stacked lithium battery, suitable for the consumer electronics market, which would allow rapid re-charge, extended life and reduced size. This is, a very attractive proposition for the mobile phone industry. Ilika and 4D Pharma are among our Early Stage Development Companies.
We added to our position in Royal Dutch Shell, the global integrated oil major. The energy sector has been in a major downturn for the last year with the oil price falling from over $100 to under $40 per barrel. Royal Dutch Shell has the financial resources not only to weather this storm but also to prosper by deploying capital into well targeted acquisitions. In that context, the company is proposing to acquire BG Group which, if completed, will represent the largest M&A deal this year. Elsewhere, costs are falling quickly and efficiency is rising which will allow a return to prior profit levels even without a full recovery in the price of oil.
Exceptionally, we also invested in a unique unlisted business, Oxford Sciences Innovation. This company has an initial 15 year agreement with Oxford University as its preferred intellectual property partner for all science departments and will have a significant stake in every spin out company. IP Group is a co-investor. The company has committed to an IPO within eight years.
Portfolio Attribution Analysis
The table on page 11 of the Annual Report lays out the top five and bottom five contributors to the Company's absolute performance in growth in NAV and their contribution relative to benchmark.
Our largest individual contributor to NAV growth was 4D Pharma which both started and ended the year as our largest holding even though we took significant profits during the year. The shares rose over 130% during the year peaking at just over GBP10 before closing the year at GBP7.60. This was largely driven by investor appreciation of the potential scale of the prize the company is working towards and confirmation through the NASDAQ listing of a near competitor of just how valuable the company could be. Of course, the valuation demands that the company continues to make progress towards that goal. 4D recently announced that it had received regulatory approval to begin a phase 1 trial in Paediatric Crohn's Disease with its lead product Thetanix. This has orphan drug status, and trials have commenced, somewhat earlier than planned.
Our next major contributor was Redde, previously known as Helphire, which provides car hire and repair services in 'not at fault' motoring accidents. This company has turned the corner from an adversarial relationship with major insurance groups, which had a significant negative effect on working capital, to one of near partnership with those same insurers where the common goal of cost reduction throughout the claims management process has led to significantly improved cash flow and rising profits. Combined with an attractive dividend policy, this led to the shares returning over 140% in the year. The company has recently made an earnings enhancing acquisition extending its reach in the corporate car repair market.
Johnson Service is a long term favourite of ours which has gone about its business of linen rental and laundry services in aquietly efficient manner and made well thought out earningsenhancing acquisitions to add to organic growth. We have takensome profit here as the share rating now more adequately reflects group prospects.
Betfair, as previously mentioned, was sold, havingbeen our best individual share in the year rising some 170% and, enjoying multiple profit upgrades. e2v is a company that we had always believed had great products such as imaging sensors for space missions but had failed to generate consistent profitability. Having gained the benefits of the renewed management team's focus to drive core profits harder, we sold.
As ever, not everything worked so well. Velocys, the developer of gas to liquids technology, our fifth largest holding last year, suffered from the sharp fall in oil price which resulted in a much slower sign up of new contracts. It also suffered from the inevitable disruption resulting from an internal dispute with its CEO who has now left. The company has a robust, cash-rich balance sheet and can withstand short-term pressures. We are hopeful of a more settled period going forward. The technology is still very relevant and world leading but it will require a stable oil price environment to really prosper. The shares fell by more than 60% in the period. The drop in the oil price also hit Premier Oil hard with the shares falling over 70% in the year. The company has continued to develop new production assets in the North Sea, namely Solan and Catcher. A final decision on the Falkland Islands development is still awaited and material cost savings are being made but falling revenues from the low oil price means the company is proceeding with caution and looking for additional partners for that asset. The company is one of the most geared plays to a recovery in the oil price. Self-inflicted problems were the major reason behind Tribal's share price fall. As a software company, albeit in education, it still has a business model which relies on new licence sales. These did not materialise as hoped and the company warned on profits more than once. In addition the CEO stepped down and the management team under a new chairman will undergo further restructuring to put the company back on a growth path. Oxford Instruments, a fallen star of the FTSE250 now in the small cap index, had a horrible year as demand from emerging markets in Russia and China evaporated. The market place for research instruments and tools has been difficult for all competitors over the last year but most recently Oxford announced an uptick in its order book and we are hopeful that the company's fortunes are on the turn. WANdisco, a big data software supplier, is transitioning its product from initial trial licences in a test environment to a live production environment. This has delayed take up as customers are rightly cautious when new elements are introduced into core business infrastructure. Sign up momentum has improved in recent quarters.
The Board
We would like to thank George Burnett for his enormous contribution to the Company over the last 20 years he has been on the Board, during which he has been Chairman for 11 years. During difficult periods and good times, he has been a steady source of good sense. As Fund Managers, we have learnt a great deal from him.
Outlook
The UK economy is performing well with strong job growth and inflation nearly absent. Consumers have finally seen some benefits from the recovery with disposable incomes rising in real terms. Nevertheless, many areas of the economy are still subject to intense competition and finding companies with highly differentiated products and services that can rise above the norm is difficult. Europe is slowly recovering while China and other emerging markets are sluggish at best, as strength in the US dollar in anticipation of rising interest rates has drained these markets of important flows of finance. Recent conflicts in multiple geographies will add another layer of caution. In these circumstances we will remain focussed on the fundamentals we look for in our companies; strong business franchises, whether gained through innovative products or superior cost profiles, strong balance sheets and the potential for strong growth delivered organically, and enhanced by acquisitions, where appropriate, over multiple years.
James Henderson and Colin Hughes
Fund Managers
4 February 2016
Attribution Analysis
The table below shows the top five active contributors to and the bottom five detractors from the Company's performance.
Share Share
Top five price Relative price Relative
contributors return contribution Top five detractors return contribution
to relative % % from relative % %
performance performance
------------------ -------- --------------- ---------------------- -------- ---------------
4D Pharma 131.8 4.8 WANdisco -68.1 -0.5
Redde 141.6 1.2 Oxford Instruments -50.9 -0.6
Johnson Service 51.7 1.1 Tribal -47.1 -0.6
Betfair 167.8 1.0 Premier Oil -73.4 -0.7
e2v technologies 49.5 1.0 Velocys -64.5 -1.4
February 04, 2016 12:40 ET (17:40 GMT)
Twenty Largest Holdings at 31 October 2015
Valuation Appreciation/ Valuation
Rank Rank 2014 Purchases Sales (depreciation) 2015
(2015) (2014) Company GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------- --------- --------------------- ------------ ------------ ---------- ----------------- ------------
1 (1) 4D Pharma 3,494 - (1,293) 4,184 6,385
2 (4) Ricardo 2,178 - - 809 2,987
3 (3) HSBC 2,238 1,208 - (654) 2,792
4 (8) e2v technologies 1,853 - - 851 2,704
5 (2) hVIVO 2,586 - - 55 2,641
6 (16) Assura 1,246 881 (121) 281 2,287
7 (10) Vertu Motors 1,757 - - 527 2,284
8 (7) Johnson Service 1,978 - (772) 966 2,172
9 (12) IP 1,722 - - 257 1,979
10 # Redde 824 - - 1,034 1,858
11 # Oxford Pharmascience 600 713 - 517 1,830
12 (9) XP Power 1,774 - - 38 1,812
13 # NAHL 825 217 - 746 1,788
14 # Rio Tinto 743 1,371 - (345) 1,769
15 (6) Senior 2,006 - - (305) 1,701
Royal Dutch
Shell 'B'
16 # shares 1,156 1,052 - (508) 1,700
St Modwen
17 (11) Properties 1,722 - (437) 365 1,650
18 # Ebiquity 1,087 240 - 318 1,645
Conviviality
19 # Retail 443 821 - 319 1,583
20 (20) Tracsis 1,180 - - 314 1,494
---------- ----------- -------- --------- ----------
Total 31,412 6,503 (2,623) 9,769 45,061
====== ====== ===== ====== ======
At 31 October 2015 these investments totalled GBP45,061,000 or 46.6% of the portfolio.
(# Not in the top 20 largest holdings last year)
Portfolio by Sector
31 October 31 October
2015 2014
% %
Financials 15.3 16.0
Consumer Services 20.2 21.5
Industrials 25.1 25.9
Technology 7.9 10.2
Health Care 14.1 10.3
Oil & Gas 5.9 4.4
Basic Materials 6.8 7.3
Consumer Goods 4.2 4.4
Telecommunications 0.5 -
------- -------
100.0 100.0
===== =====
Portfolio by Index
31 October 31 October
2015 2014
% %
FTSE 100 16.3 18.8
FTSE 250 13.3 19.7
FTSE Fledgling 2.4 1.5
FTSE SmallCap 17.8 18.6
FTSE AIM 39.0 34.5
Other(1) 11.2 6.9
------- -------
100.0 100.0
===== =====
(1 Other also includes AIM investments outside the FTSE AIM Index)
(Source: Henderson)
Market capitalisation of the portfolio at 31 October 2015
FTSE All-Share Portfolio
Index %
%
Greater than GBP2bn 87.2 19.3
GBP1bn - GBP2bn 5.6 7.5
GBP500m - GBP1bn 3.9 9.2
GBP200m - GBP500m 2.3 20.7
GBP100m - GBP200m 0.7 23.0
GBP50m - GBP100m 0.1 10.0
Less than GBP50m 0.0 6.2
-------- --------
100.0 100.0
====== ======
Principal Risks and Uncertainties and Viability Statement
The Board, with the assistance of Henderson, has carried out a robust assessment of the principal risks facing the Company including those that would threaten its business model, future performance, solvency and liquidity. The principal risks and uncertainties facing the Company relate to investing in the shares of companies that are listed in the United Kingdom, including small companies. Although the Company invests almost entirely in securities that are listed on recognised markets, share prices may move rapidly, whether upwards or downwards, and it may not be possible to realise an investment at Henderson's assessment of its value. Falls in the value of the Company's investments can be caused by unexpected external events. The companies in which investments are made may operate unsuccessfully, or fail entirely, such that shareholder value is lost. The Company is also exposed to the operational risk that one or more of its contractors or sub-contractors may not provide the required level of service.
The Board considers regularly the principal risks facing the Company in order to mitigate them as far as practicable. The Board has drawn up a risk map which identifies the cardinal risks to which the Company is exposed. These principal risks fall broadly under the following categories:
Risk Controls and Mitigation
---------------------------------- --------------------------------------
Investment activity and Henderson provides the
strategy Directors with management
information including
performance data reports
and shareholder analyses
on a monthly basis. The
Board monitors the implementation
and results of the investment
process with the Fund
Managers, who attend all
Board meetings, and reviews
regularly data that monitors
risk factors in respect
of the portfolio. Henderson
operates in accordance
with investment limits
and restrictions determined
by the Board; these include
limits on the extent to
which borrowings may be
used. The Board reviews
its investment limits
and restrictions regularly
and Henderson confirms
its compliance with them
each month. The Board
reviews investment strategy
at each Board meeting.
An inappropriate investment
strategy (for example,
in terms of asset allocation,
stock selection, failure
to anticipate external
shocks or the level of
gearing) may lead to a
reduction in NAV, underperformance
against the Company's
benchmark index and the
Company's peer group;
it may also result in
the Company's shares trading
on a wider discount to
NAV. The Board seeks to
manage these risks by
ensuring a diversification
of investments through
regular meetings with
February 04, 2016 12:40 ET (17:40 GMT)
the Fund Managers with
measurement against performance
indicators and by reviewing
the extent of borrowings.
---------------------------------- --------------------------------------
Financial instruments By its nature as an investment
and the management of trust, the Company is
risk exposed in varying degrees
to market risk, interest
rate risk, liquidity risk,
currency risk and credit
and counterparty risk.
Market risk arises from
uncertainty about the
future prices of the Company's
investments.
An analysis of these financial
risks and the Company's
policies for managing
them are set out in the
Annual Report.
---------------------------------- --------------------------------------
Operational Disruption to, or failure
of, Henderson's accounting,
dealing or payment systems
or the Custodian or the
Depositary's records could
prevent the accurate reporting
and monitoring of the
Company's financial position.
Henderson has contracted
some of its operational
functions, principally
those relating to trade
processing, investment
administration and accounting,
to BNP Paribas Securities
Services.
Details of how the Board
monitors the services
provided by Henderson
and its other suppliers,
and the key elements designed
to provide effective internal
control, are explained
further in the internal
control section of the
Corporate Governance Statement
the Annual Report.
---------------------------------- --------------------------------------
Accounting, legal and In order to qualify as
regulatory an investment trust the
Company must comply with
Section 1158 of the
Corporation Tax Act 2010
('Section 1158'), to which
reference is made in the
Annual Report. A breach
of Section 1158 could
result in the Company
losing investment trust
status and, as a consequence,
capital gains realised
within the Company's portfolio
would be subject to Corporation
Tax. The Section 1158
criteria are monitored
by Henderson and the results
are reported to the Directors
at each Board meeting.
The Company must comply
with the provisions of
the Companies Act 2006
('the Act') and, as the
Company's shares are listed
for trading on the London
Stock Exchange, the Company
must comply with the UK
Listing Authority's Listing
Rules and Disclosure Rules
('UKLA Rules'). A breach
of the Act could result
in the Company and/or
the Directors being fined
or becoming the subject
of criminal proceedings.
Breach of the UKLA Rules
could result in the suspension
of the Company's shares
which would in turn lead
to a breach of Section
1158. The Board relies
on Henderson Secretarial
Services Limited, its
corporate company secretary
and its professional advisers
to ensure compliance with
the Act and the UKLA Rules.
---------------------------------- --------------------------------------
Liquidity In line with the Company's
investment strategy the
Fund Manager can invest
in a concentrated portfolio
of shares on an unconstrained
basis across the whole
range of market capitalisations.
This includes investing
in smaller, early stage
development companies.
The market for these shares
is less liquid than for
those stocks which have
a larger market capitalisation.
The Board monitors the
Company's exposure to
these smaller companies
on a monthly basis and
reviews this in detail
at Board meetings. The
liquidity of the whole
portfolio is also considered
at Board meetings.
---------------------------------- --------------------------------------
Net Gearing The ability to borrow
money for investment purposes
is a key advantage of
the investment trust structure.
A failure to maintain
a bank facility would
prevent the Company from
gearing. A breach of the
Company's borrowing covenants
or the gearing range determined
by the Board could lead
to the Company becoming
a forced seller of shares
with possible losses for
shareholders. The Board
reviews the level of net
gearing at each Board
meeting in light of the
liquidity of the portfolio.
---------------------------------- --------------------------------------
Failure of Henderson A failure of Henderson's
business, whether or not
as a result of regulatory
failure, cyber risk or
other failure would result
in Henderson being unable
to meet their obligations
and their duty of care
to the Company. The Board
meets regularly with representatives
of Henderson's Investment
Management, Risk and Assurance,
Compliance and Investment
Trust teams and reviews
February 04, 2016 12:40 ET (17:40 GMT)
internal control reports
from Henderson on a quarterly
basis. The failure of
Henderson might not necessarily
lead to a loss of the
Company's assets, however,
this risk is mitigated
by the Company's ability
to change its investment
manager if necessary,
subject to the terms of
its investment management
agreement.
---------------------------------- --------------------------------------
Viability Statement
The Company is a long term investor; the Directors believe it is appropriate to assess the Company's viability over a five year period.
The assessment considered the impact of the likelihood of the principal risks and uncertainties facing the Company, in particular Investment and Strategy, Market, Liquidity, Gearing and Financial risks, in severe but plausible scenarios, and the effectiveness of any mitigating controls in place.
The Directors took into account the liquidity of the portfolio and the gearing in place when considering the viability of the Company over the next five years and its ability to meet liabilities as they fall due. This included consideration of the duration of the Company's loan facilities and how a breach of the loan facility covenants could impact on the Company's net asset value and share price.
The Directors do not envisage any change in strategy or objectives or any events that would prevent the Company from continuing to operate over that period as the Company's assets are liquid, its commitments are limited and the Company intends to continue to operate as an investment trust. Only a substantial financial crisis affecting the global economy could have an impact on this assessment. The Directors conducted this review for a period of five years because they consider this to be an appropriate period over which they do not expect there to be any significant change in the current principal risks and adequacy of the mitigating controls in place. Based on this assessment, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next five years.
Related Party Transactions
The Company's transactions with related parties in the year were with the Directors, and Henderson. There have been no material transactions between the Company and its Directors during the year other than the amounts paid to them which were in respect of expenses and remuneration. There were no outstanding amounts payable at the year end. Directors' shareholdings are disclosed in the Annual Report. In relation to the provision of services by Henderson, other than fees payable by the Company in the ordinary course of business and the provision of sales and marketing services there have been no material transactions with Henderson affecting the financial position of the Company during the year under review.
Statement of Directors' Responsibilities (under DTR 4.1.12)
Each of the Directors confirms that, to the best of their knowledge:
-- the Company's financial statements, which have been prepared in accordance with UK Accounting Standards on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and
-- the Strategic Report and financial statements include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.
For and on behalf of the Board
George Burnett
Chairman
4 February 2016
Income Statement
Year ended 31 Year ended 31 October
October 2015 2014
Revenue Capital Revenue Capital
return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Notes
Gains from investments
held
at fair value through
2 profit or loss - 9,340 9,340 - 1,869 1,869
Income from investments
held
at fair value through
3 profit or loss 2,302 - 2,302 1,697 - 1,697
Other interest receivable
4 and other income 14 - 14 18 - 18
--------- ---------- ---------- --------- ---------- ----------
Gross revenue and
capital gains 2,316 9,340 11,656 1,715 1,869 3,584
Management fee and
5 performance fee (173) (1,168) (1,341) (151) (502) (653)
Other administrative
expenses (272) - (272) (282) - (282)
----------- ---------- ---------- ----------- ---------- ----------
Net return on ordinary
activities
before finance charges
and taxation 1,871 8,172 10,043 1,282 1,367 2,649
Finance charges (70) (164) (234) (71) (166) (237)
----------- ---------- ---------- ----------- ---------- ----------
Net return on ordinary
activities
before taxation 1,801 8,008 9,809 1,211 1,201 2,412
Taxation - - - - - -
----------- ---------- ---------- ----------- ---------- ----------
Net return on ordinary
activities after
taxation 1,801 8,008 9,809 1,211 1,201 2,412
---------- ---------- ---------- ---------- ---------- ----------
6 Return per ordinary
share -
basic and diluted 22.51p 100.09p 122.60p 15.17p 15.04p 30.21p
====== ======= ====== ====== ======= ======
The total columns of this statement represent the Profit and Loss Account of the Company. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. No operations were acquired or discontinued during the year. The Company had no recognised gains or losses other than those disclosed in the Income Statement. There is no material difference between the return on ordinary activities before taxation and the return for the financial year stated above and their historical cost equivalents.
Reconciliation of Movements in Shareholders' Funds
Called
up Share Capital Other
share premium redemption capital Revenue
Year ended 31 October capital account* reserve* reserves* Reserve* Total
2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 November 2014 2,000 14,838 2,431 51,290 1,743 72,302
Dividends paid on
the ordinary shares
(note 9) - - - - (1,104) (1,104)
Net return on ordinary
activities after
taxation - - - 8,008 1,801 9,809
-------- ---------- ---------- ---------- ----------- ---------
At 31 October 2015 2,000 14,838 2,431 59,298 2,440 81,007
===== ====== ====== ====== ====== =====
Called
up Share Capital Other
share premium redemption capital Revenue
Year ended 31 October capital account(1) reserve(1) reserves(1) Reserve(1) Total
2014 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 November 2013 2,007 14,522 2,415 50,089 1,401 70,434
Dividends paid on
the ordinary shares
(note 9) - - - - (869) (869)
Net return on ordinary
activities after
taxation - - - 1,201 1,211 2,412
Issue of ordinary
shares following
conversion of subscription
shares 9 325 - - - 334
Costs in respect
of shares issued - (9) - - - (9)
Expiry of subscription
February 04, 2016 12:40 ET (17:40 GMT)
shares (16) - 16 - - -
-------- ---------- ---------- ---------- ----------- ---------
At 31 October 2014 2,000 14,838 2,431 51,290 1,743 72,302
====== ====== ====== ====== ===== =====
(1) Distributions can be made from the 'revenue reserve' and from realised gains in 'other capital reserves'. Distributions cannot be made from the 'share premium account' or the 'capital redemption reserve'.
Balance Sheet
31 October 31 October
2015 2014
GBP'000 GBP'000
Investments held at fair
value through profit or loss
Listed at market value 50,984 49,740
Listed on AIM at market value 45,327 32,579
Unlisted at market value 333 -
------------ ------------
98,644 82,319
------------ ------------
Current assets
Investment held at fair value
through profit or loss 2 2
Debtors 265 806
Cash at bank and in hand 508 1,490
------------ ------------
775 2,298
Creditors: amounts falling
due within one year (16,412) (12,315)
----------- -----------
Net current liabilities (15,637) (10,017)
----------- -----------
Net assets 81,007 72,302
======= =======
Capital and reserves
Called up share capital 2,000 2,000
Share premium account 14,838 14,838
Capital redemption reserve 2,431 2,431
Other capital reserves 59,298 51,290
Revenue reserve 2,440 1,743
------------ ------------
Total shareholders' funds 81,007 72,302
======= =======
Net asset value per ordinary
share (basic and diluted) 1,012.5p 903.7p
======= =======
Cash Flow Statement
Year ended Year ended
31 October 31 October
2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
Net cash inflow from operating
activities 1,254 908
Servicing of finance
Interest paid (225) (237)
----------- -----------
Net cash outflow from
servicing of finance (225) (237)
Financial investment
Purchases of investments (25,616) (23,815)
Sales of investments 21,184 21,951
----------- -----------
Net cash outflow from
financial investment (4,432) (1,864)
Equity dividends paid (1,104) (869)
------------ ------------
Net cash outflow before
management of liquid resources
and financing (4,507) (2,062)
Financing
Proceeds from issue of
ordinary shares - 334
Expenses paid in respect
of ordinary share issue - (4)
Net drawdown of loans 3,525 2,990
----------- -----------
Net cash inflow from financing 3,525 3,320
----------- -----------
Increase/(decrease) in
cash (982) 1,258
====== ======
Reconciliation of net cash flow to movement in
net debt
Year ended Year ended
31 October 31 October
2015 2014
(Decrease)/increase in
cash as above (982) 1,258
Net cash inflow from increase
in loans (3,525) (2,990)
---------- ----------
Movement in net debt (4,507) (1,732)
Net debt at the start
of the year (10,345) (8,613)
---------- ----------
Net debt at the end of
the year (14,852) (10,345)
====== ======
Notes to the Financial Statements
1. Accounting policies
(a) Basis of accounting
The financial statements have been prepared
on a going concern basis and under the historical
cost basis of accounting, modified to include
the revaluation of investments at fair value
through profit or loss. The financial statements
have been prepared in accordance with applicable
accounting standards in the United Kingdom
and with those parts of the Companies Act 2006
applicable to companies reporting under the
standards and with the Statement of Recommended
Practice ('SORP') for investment trusts issued
by the Association of Investment Companies
('the AIC') in January 2009. The Company's
accounting policies are consistent with the
prior year.
(b) 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
and in 2014 were duly passed. The next triennial
continuation resolution will be put to the
Annual General Meeting in 2017. The assets
of the Company consist almost entirely of securities
that are listed (or listed on AIM) and, accordingly,
the Directors believe that the Company has
adequate resources to continue in existence
for the foreseeable future. The Board has also
assessed the principal risks other matters
in connection with the Viability Statement.
For these reasons, the Board has decided that
it is appropriate for the financial statements
to be prepared on a going concern basis.
(c) Investments held at fair value through
profit or loss
Listed investments and investments listed on
AIM have been designated by the Board as held
at fair value through profit or loss. Investments
are recognised at fair value on acquisition
and are measured thereafter at fair value.
Fair value is deemed to be the bid price or
the last trade price, depending on the convention
of the exchange on which the investment is
listed.
Unlisted investments have also been designated
as held at fair value through profit or loss
and are valued by the Directors using primary
valuational techniques such as recent transactions
and net assets.
Changes in the fair value of investments held
at fair value through profit or loss and gains
and losses on disposal are recognised in the
Income Statement as 'gains or losses from investments
held at fair value though profit or loss'.
Transaction costs incurred on the purchase
and disposal of investments are included within
the cost or deducted from the proceeds of the
investments. All purchases and sales are accounted
for on a trade date basis.
2015 2014
GBP'000 GBP'000
Gains on investment held at fair
2. value through profit or loss 8,397 9,374
Gains on the sale of investments
based on historical cost (3,786) (6,292)
Revaluation gains recognised in
previous years
Gains on investments sold in the
year based on carrying value at
previous balance sheet date 4,611 3,082
February 04, 2016 12:40 ET (17:40 GMT)
Revaluation gains/(losses) on investments
held at 31 October 4,729 (1,213)
9,340 1,869
3. Income from investments held at 2015 2014
fair value through profit or loss GBP'000 GBP'000
UK:
Dividends from listed investments 1,617 1,173
Dividends from AIM investments 471 321
------- -------
2,088 1,494
Non-UK:
Dividends from listed investments 214 203
------- -------
2,302 1,697
==== ====
2015 2014
GBP'000 GBP'000
Other interest receivable and other
4. income
Underwriting commission (allocated
to revenue)(1) 14 18
==== ====
(1) During the year the Company was not required
to take up shares; no commission was taken to
capital (2014: no shares taken up and commission
taken to capital).
5. Management and performance
fee
2015 2014
Revenue Capital Revenue Capital
return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ --------- ----------- ----------- --------- ----------- -----------
Management
fee 173 403 576 151 353 504
Performance
fee - 765 765 - 149 149
-------- ---------- ---------- -------- ---------- ----------
173 1,168 1,341 151 502 653
-------- ---------- ---------- -------- ---------- ----------
The 2015 management fee is net of GBPnil (2014: GBP4,500) paid by Henderson on behalf of the Company in respect of audit fees
6. Return per ordinary share
The total return per ordinary share is based
on the total return attributable to the ordinary
shares of GBP9,809,000 (2014: GBP2,412,000) and
on 8,000,858 ordinary shares (2014: 7,983,365)
being the weighted average number of shares in
issue during the year.
The total return can be futher analysed as follows:
2015 2014
GBP'000 GBP'000
---------------------------------------------- ------------ -------------
Revenue return 1,801 1,211
Capital return 8,008 1,201
---------- ----------
Total return 9,809 2,412
---------- ----------
Weighted average number of ordinary
shares 8,000,858 7,983,365
2015 2014
Revenue return per ordinary share 22.51p 15.17p
Capital return per ordinary share 100.09p 15.04p
----------- -----------
Total return per ordinary share 122.60p 30.21p
====== ======
7. Net asset value per ordinary share (basic and
diluted)
The net asset value per ordinary share at the
year end was 1,012.5p (2014: 903.7p). The net
asset value per ordinary share is based on the
net assets attributable to the ordinary shares
of GBP81,007,000 (2014: GBP72,302,000) and on
the 8,000,858 ordinary shares in issue at 31
October 2015 (2014: 8,000,858).
The movements during the year of the assets attributable
to the ordinary shares were as follows:
2015 2014
GBP'000 GBP'000
Total net assets at 1 November 72,302 70,434
Total net return 9,809 2,412
Dividends paid in the year (1,104) (869)
Shares issued (after costs) - 325
----------- -----------
Total net assets at 31 October 81,007 72,302
====== ======
8. Called up share capital
2015 2014
GBP'000 GBP'000
Allotted, issued and fully paid:
8,000,858 ordinary shares of
25p each (2014: 8,000,858) 2,000 2,000
----------- -----------
2,000 2,000
====== ======
There were 1,639,652 subscription shares of 1p
each in issue at 31 October 2013. The subscription
shares were issued, as a bonus issue to the ordinary
shareholders, on 19 January 2007. During the
year ended 31 October 2014, 35,670 of the Company's
subscription shares were converted into ordinary
shares. The remaining 1,603,982 subscription
shares were subsequently cancelled.
9. Dividends
2015 2014
GBP'000 GBP'000
Amounts recognised as distributions
to equity holders in the year:
Final dividend for the year ended
31 October 2014 of 8.8p (2013:
7.2p) 704 573
Interim dividend for the year
ended 31 October 2015 of 5.0p
(2014: 3.7p) 400 296
----------- -----------
1,104 869
====== ======
The final dividend of 8.8p per ordinary share
in respect of the year ended 31 October 2014
was paid on 31 March 2015 to shareholders on
the register of members at the close of business
on 20 February 2015.
The interim dividend of 5.0p per ordinary share
in respect of the year ended 31 October 2015
was paid on 25 September 2015 to shareholders
on the register of members at the close of business
on 21 August 2015.
Subject to approval at the Annual General Meeting,
the proposed final dividend of 13.0p per ordinary
share will be paid on 24 March 2016 to shareholders
on the register of members at the close of business
on 12 February 2016.
The total dividends payable in respect of the
financial year, which form the basis of the test
under Section 1158 of the Corporation Tax Act
2010, are set out below:
Year Year
ended ended
31 October 31 October
2015 2014
GBP'000 GBP'000
Revenue available for distribution
by way of dividends for the year 1,801 1,211
Interim dividend for the year ended
31 October 2015: 5.0p (2014: 3.7p) (400) (296)
Proposed final dividend for the year
ended 31 October 2015: 13.0p (based
on the 8,000,858 ordinary shares in
issue at 4 February 2016) (2014: 8.8p
on 8,000,858 ordinary shares) (1,040) (704)
----------- -----------
Undistributed revenue for section
1158 purposes(1) 361 211
======= =======
Undistributed revenue comprises 14.2% of income
from investments (2014: 11.8%)
10. 2015 Annual Report
The figures and financial information for the
year ended 31 October 2015 are extracted from
the Company's Annual Report for that period and
February 04, 2016 12:40 ET (17:40 GMT)
do not constitute statutory accounts. The Company's
Annual Report for the year to 31 October 2015
have been audited but have not yet been delivered
to the Registrar of Companies. The Auditors'
Report on the 2015 Annual Report was unqualified,
did not include a reference to any matter to
which the Auditors drew attention without qualifying
the report, and did not contain any statements
under section 498 of the Companies Act 2006.
11. 2014 Report and Financial Statements
The figures and financial information for the
year ended 31 October 2014 are extracted from
the Company's annual financial statements for
that period and do not constitute statutory accounts.
The Company's annual financial statements for
the year to 31 October 2014 have been delivered
to the Registrar of Companies. The Auditors'
report on the 2014 annual financial statements
was unqualified, did not include a reference
to any matter to which the auditors drew attention
without qualifying the report, and did not contain
any statements under section 498 of the Companies
Act 2006.
12. Annual Report
The Annual Report for the year ended 31 October
2015 will be posted to shareholders in February
2016 and will be available on the Company's website
(www.hendersonopportunitiestrust.com) or in hard
copy format from the Company's Registered Office,
201 Bishopsgate, London EC2M 3AE.
13. Annual General Meeting
The Annual General Meeting will be held on Thursday
17 March 2016 at 2.30pm at 201 Bishopsgate, London
EC2M 3AE.
Neither the contents of the Company's website nor 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.
For further information, please contact:
George Burnett James de Sausmarez Chairman Head of Investment Henderson Opportunities Trusts Trust plc Henderson Global Investors Telephone: 020 7818 Telephone: 020 7818 6125 3349 James Henderson or Sarah Gibbons-Cook Fund Manager Investor Relations Henderson Opportunities and PR Manager Trust plc Henderson Global Investors Telephone: 020 7818 Telephone: 020 7818 4370 3198
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSLFWLFMSEDE
(END) Dow Jones Newswires
February 04, 2016 12:40 ET (17:40 GMT)
1 Year Henderson Opportunities Chart |
1 Month Henderson Opportunities 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
