We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| JPMor.I&C | LSE:JPI | London | Ordinary Share | GB00B2NBJ068 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 99.50 | 98.00 | 101.00 | 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
TIDMJPI TIDMJPIU TIDMJPIZ
RNS Number : 8541T
JPMorgan Income & Capital Trust PLC
17 October 2017
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN INCOME & CAPITAL TRUST PLC
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHSED
31ST AUGUST 2017
Legal Entity Identifier: 549300VB8OIJVLR6HX75
Information disclosed in accordance with DTR 4.2.2
chairman's statement
Introduction and Performance
During the six months ended 31st August 2017, the total return on shareholders' funds was 5.8%, compared with a return of 4.8% recorded by the composite benchmark (comprising 90% FTSE 350 Index and 10% Bloomberg Barclays Global Aggregate Corporate Bond Index in sterling terms).
During the period, the UK stock market performed well with a strengthening global economic outlook and continuing low interest rates maintaining a positive momentum. Domestically, the unexpected General Election on 8th June produced a shock result, with the incumbent Conservative Party losing its parliamentary majority and generating further political uncertainty. Levels of employment in the UK reached record highs, although there were signs that growth in consumer spending was faltering and increasing concerns regarding the possible negative impacts of 'Brexit' on the economy. The Bank of England maintained interest rates at 0.25% throughout the period, with some discussion of possible future rises and consequent unwinding of the GBP435 billion quantitative easing programme.
The Investment Managers provide a detailed commentary covering market developments and your Company's portfolio in their report.
Share Price Performance
The price of the Company's ordinary shares increased by 11.7% (as the discount to net asset value narrowed) and the price of units (each comprising two ordinary shares and one ZDP share) rose 5.7% over the period.
The prices of the Company's two classes of share and of its units were at a premium/(discount) to net asset value at 31st August 2017 and at previous period end dates as follows:
Hot Features
Premium
31st August 2017 28th February 2017 31st August 2016
Share Premium/ Share Premium/ Share Premium/
prices (discount) prices (discount) prices (discount)
---------- ------- ----------- -------- ----------- ------- -----------
ZDP 188.5p 1.3% 187.5p 4.2% 182.5p 4.8%
Ordinary 95.5p (8.3)% 85.5p (13.5)% 82.0p (9.7)%
Units 371.5p (5.8)% 351.5p (7.0)% 322.0p (9.5)%
---------- ------- ----------- -------- ----------- ------- -----------
At 13th October 2017, the prices of the Ordinary shares and Units were at discounts of (7.6)% and (5.5)% respectively whilst the ZDP share price was at a premium of 0.9%.
Statement of Comprehensive Income and Dividends
Revenue after tax and before dividends for the period was GBP3.8 million and the revenue return per Ordinary share was 5.5p. The capital return per Ordinary share was 3.7p, reflecting the impact of the rise in the value in our shareholdings. The total return per Ordinary Share was therefore 9.2p.
The Board has declared two quarterly interim dividends for the first six months of the Company's financial year ending 28th February 2018, each of 2.0p per Ordinary Share, paid/payable to Ordinary shareholders and Unit holders respectively on 28th July 2017 and 20th October 2017. The Board intends, in the absence of unforeseen circumstances, to maintain the current level of quarterly dividends to Ordinary shareholders and Unit holders for the remainder of the financial year ending 28th February 2018. The Company's third interim dividend is expected to be paid in January as in previous years. However, the fourth interim dividend, usually paid in April, will be paid before the liquidation of the Company.
The undistributed revenue reserves, after allowing for the payment of the second interim dividend, amounts to GBP6.3 million.
Hurdle Rate
The Hurdle Rate measures the amount by which the total assets of the Company have to grow each year in order to return the current share price to Ordinary shareholders when the Company winds up in February 2018. At 31st August 2017, the Hurdle Rate required to return the Ordinary share price of 95.5p was minus 3.8% per annum and the Hurdle Rate required to return an Ordinary share price of 100.0p was 0.1% per annum. At 31st August 2017, the Hurdle Rate required to return the Final Capital Entitlement of the ZDP shares of 192.13p was minus 68.2% per annum.
At 13th October 2017, the Hurdle Rate required to return the current Ordinary share price of 94.8p was minus 5.1% per annum, to return an ordinary share price of 100p was 0.8% per annum and to return the Final Capital Entitlement of the ZDP shares of 192.13p was minus 77.6% per annum.
Outlook
There continues to be anxiety surrounding the progress of the 'Brexit' negotiations, with many significant unanswered questions regarding the terms of the UK's future access to European markets. It also remains unclear whether the UK economy is strong enough to begin the transitional steps to 'normalisation' through interest rate increases and the winding back of quantitative easing.
In the remaining months of the Company's life, your Board and the Managers will pay particularly close attention to developments in the markets, as the portfolio is positioned in preparation for the Company's termination. Our objective remains to manage the Company's portfolio in order to meet the final capital entitlement of the ZDP shareholders and to maintain the current level of quarterly dividends whilst maximising the final capital return to ordinary shareholders.
Future of the Company
The Board continues to work with the Company's advisers and Investment Managers in considering options for shareholders following the termination of the Company on 28th February 2018. The Board is considering offering shareholders a rollover option into a new investment trust as an alternative to liquidating their shares for cash. This new investment trust would have a multi-asset investment strategy with a primary focus of income generation. The Board has requested the Company's advisers and Investment Managers to take market soundings on this possible offer.
Sir Laurence Magnus
Chairman
17th October 2017
Investment managers' report
Market Review
The UK equity market delivered positive returns over the six month period to 31st August 2017, with the FTSE 350 ex ITs Index up 5.0%, despite the ongoing political and economic uncertainties. The more domestically focused FTSE Mid 250 and Small Cap indices outperformed the more globally oriented FTSE100 large-cap index. Sterling corporate bonds also rose in the period, with the Bloomberg Barclays Global Aggregate Corporate Bond Index up 2.8%.
Politics dominated investors' thoughts in the first half of the year, particularly in light of the unexpected snap UK General Election in June. The UK government went, within six months, from being genuinely strong and stable to being weak and divided. The Prime Minister lost her majority and negotiated a 'confidence and supply' agreement with the Democratic Unionist Party. The Brexit clock was started in March 2017 and the negotiations are proving to be as challenging as feared. The Bank of England's Monetary Policy Committee held base rates at 0.25%, despite the more recent pick-up in inflation, which is eating into real wage growth. In Europe, the improving economic and confidence indicators continued to surprise positively and global economic growth has continued to accelerate.
UK dividend growth was good during the first half, with encouraging profitability being boosted by the weakness of sterling over the last twelve months. This has enhanced the sterling value of dividends from some of the globally oriented large-cap stocks that declare their dividends in US dollars. There have also been some special dividends, as companies have delivered higher earnings and improved cash generation.
Portfolio Review
The allocation to equities stood at approximately 98% at the close of the last financial year (28th February 2017). Since the year end we have been progressively reducing the equity exposure as we approach the termination date of 28th February 2018. The equity allocation at the half year period end stood at approximately 85%. This has been achieved by reducing a selection of the largest overweight stocks in the portfolio such as Beazley, Berkeley Group and Jupiter. Therefore, we are underweight equities relative to the Trust's composite benchmark.
Outwith decisions based on asset allocation, we have also sold our positions in Fevertree, Tesco and WPP. The sale of Fevertree was predicated on booking the gains from a profitable holding whose valuation had become less attractive. The sales of Tesco and WPP were as a result of a deterioration in their earnings' trends.
We continue to add new names where we judge the opportunity is attractive notwithstanding the reduction in the overall equity exposure. For instance, we bought Vodafone as free cash flow guidance meant the dividend will be covered going forward. We also bought Evraz, an iron ore producer and steel manufacturer. PageGroup, a global recruitment specialist was also added as their results showed that they are benefiting from synchronised global economic growth.
Performance Review
In the six month period to the 31st August the Trust's return was +5.8%, in comparison with the composite benchmark return of +4.8%. This encouraging result was driven by strong stock selection. Some of the most significant contributors to performance were the portfolio's overweight positions in the housebuilding stocks, Persimmon, Berkeley Group and Taylor Wimpey. These domestically focused stocks delivered strong results during the half year, whilst also having attractive dividend yields. The overweight position in Electrocomponents, the global distributor for engineers, continued to outperform the rising market and its results have consistently beaten market consensus expectations. By contrast, some of the portfolio's more defensive and more globally oriented stocks, such as Imperial Brands and GlaxoSmithKline, underperformed the rising market over this period. The holding in ITV was also unhelpful as its share price weakened despite delivering good dividend growth and another special dividend. Overall the Trust delivered positive absolute and relative performance during the first half of the current financial year.
Market Outlook
The domestic economic and political outlook for the rest of 2017 and beyond has become more uncertain, due to the unexpected UK Election result and concerns over the Government's negotiating powers for Brexit.
Having benefited from being overweight in equities over recent periods of positive equity market returns, we have been lessening this overweight position over recent months as we approach the Company's termination in February 2018.
Sarah Emly
John Baker
Investment Managers
17th October 2017
Interim Management Report
The Company is required to make the following disclosures in its half year report.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company fall into the following broad categories: investment and strategy; accounting, legal and regulatory; corporate governance and shareholder relations; operational; and financial. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 28th February 2017.
Related Parties' Transactions
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.
Going Concern
The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence until its impending termination on 28th February 2018 and, more specifically, that there are no material uncertainties relating to the Company that would prevent its ability to meet its liabilities as they fall due. With the impending termination of the Company's life on 28th February 2018, these financial statements have been prepared on a basis other than going concern.
Directors' Responsibilities
The Board of Directors confirms that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the half year financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company and of the assets and liabilities, financial position and net return and loss of the Company as at 31st August 2017 as required by the UK Listing Authority Disclosure and Transparency Rule ('DTR') 4.2.4R; and
(ii) the interim management report includes a fair review of the information required by DTR 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.
In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently; -- make judgements and accounting estimates that are reasonable and prudent; and
-- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
and the Directors confirm that they have done so.
For and on behalf of the Board
Sir Laurence Magnus
Chairman
17th October 2017
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31st August 2017
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 2017 31st August 2016 28th February 2017
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- --------- -------- -------- -------- -------- -------- -------- --------
Gains on investments held
at realisable value (2016
: fair value through
profit or loss) - 5,692 5,692 - 4,806 4,806 - 14,501 14,501
Net foreign currency gains - 4 4 - - - - 4 4
Income from investments 4,280 - 4,280 4,565 - 4,565 7,015 - 7,015
Interest receivable and
similar income 13 - 13 15 - 15 19 - 19
--------------------------- -------- --------- -------- -------- -------- -------- -------- -------- --------
Gross return 4,293 5,696 9,989 4,580 4,806 9,386 7,034 14,505 21,539
Management fee (262) (393) (655) (235) (352) (587) (482) (722) (1,204)
Other administrative
expenses (231) - (231) (262) - (262) (545) - (545)
Provision for liquidation
costs - - - - - - - (552) (552)
--------------------------- -------- --------- -------- -------- -------- -------- -------- -------- --------
Net return on ordinary
activities before finance
costs and taxation 3,800 5,303 9,103 4,083 4,454 8,537 6,007 13,231 19,238
Finance costs -
appropriations for Zero
Dividend Preference
shares - (2,784) (2,784) - (2,609) (2,609) - (5,304) (5,304)
Finance costs - other (5) (7) (12) (5) (7) (12) (10) (15) (25)
--------------------------- -------- --------- -------- -------- -------- -------- -------- -------- --------
Net return on ordinary
activities before
taxation 3,795 2,512 6,307 4,078 1,838 5,916 5,997 7,912 13,909
Taxation (charge)/credit (31) - (31) (4) - (4) 19 - 19
--------------------------- -------- --------- -------- -------- -------- -------- -------- -------- --------
Net return on ordinary
activities after taxation 3,764 2,512 6,276 4,074 1,838 5,912 6,016 7,912 13,928
--------------------------- -------- --------- -------- -------- -------- -------- -------- -------- --------
Return per class of share
(note 4)
Ordinary share 5.5p 3.7p 9.2p 5.9p 2.7p 8.6p 8.8p 11.5p 20.3p
Zero Dividend Preference
share - 6.0p 6.0p - 5.6p 5.6p - 11.4p 11.4p
statement of changes in equity
for the six months ended 31st August 2017
Called
up Capital
share Share Other redemption Capital Revenue
capital premium reserve reserve reserves reserve(1) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- -------- ----------- --------- ----------- --------
Six months ended
31st August 2017
(Unaudited)
At 28th February
2017 685 4,627 60,539 8 (4,367) 6,305 67,797
Amortisation of
expenses of the
placing and offer
for subscription - - 11 - - - 11
Net return on ordinary
activities - - - - 2,512 3,764 6,276
Dividends paid
in the year - - - - - (2,742) (2,742)
-------------------------- -------- -------- -------- ----------- --------- ----------- --------
At 31st August
2017 685 4,627 60,550 8 (1,855) 7,327 71,342
-------------------------- -------- -------- -------- ----------- --------- ----------- --------
Six months ended
31st August 2016
(Unaudited)
At 29th February
2016 685 4,627 60,516 8 (12,279) 5,567 59,124
Amortisation of
expenses of the
placing and offer
for subscription - - 12 - - - 12
Net return on ordinary
activities - - - - 1,838 4,074 5,912 Dividends paid in the year - - - - - (2,810) (2,810) -------------------------- -------- -------- -------- ----------- --------- ----------- -------- At 31st August 2016 685 4,627 60,528 8 (10,441) 6,831 62,238 -------------------------- -------- -------- -------- ----------- --------- ----------- -------- Year ended 28th February 2017 (Audited) At 29th February 2016 685 4,627 60,516 8 (12,279) 5,567 59,124 Amortisation of expenses of the placing and offer for subscription - - 23 - - - 23 Net return on ordinary activities - - - - 7,912 6,016 13,928 Dividends paid in the year - - - - - (5,278) (5,278) -------------------------- -------- -------- -------- ----------- --------- ----------- -------- At 28th February 2017 685 4,627 60,539 8 (4,367) 6,305 67,797 -------------------------- -------- -------- -------- ----------- --------- ----------- --------
1 This reserve forms the distributable reserve of the Company and may be used to fund distribution of profits to investors via dividend payments.
statement of financial position
at 31st August 2017
(Unaudited) (Unaudited) (Audited)
31st August 2017 31st August 2016 28th February 2017
GBP'000 GBP'000 GBP'000
----------------------------------------------------------- ----------------- ----------------- -------------------
Fixed assets
Investments held at fair value through profit or loss - 136,397 -
Current assets
Investments held at realisable value (note 2) 138,765 - 148,293
Debtors 2,787 1,191 1,129
Cash and cash equivalents 17,148 5,911 3,897
----------------------------------------------------------- ----------------- ----------------- -------------------
158,700 7,102 153,319
Creditors: amounts falling due within one year (126) (60) (1,074)
Provision for liquidation (552) - (552)
Capital entitlement of the Zero Dividend Preference
shareholders (86,680) - (83,896)
----------------------------------------------------------- ----------------- ----------------- -------------------
Net current assets 71,342 7,042 67,797
----------------------------------------------------------- ----------------- ----------------- -------------------
Total assets less current liabilities 71,342 143,439 67,797
----------------------------------------------------------- ----------------- ----------------- -------------------
Creditors: amounts falling due after more than one year
Capital entitlement of the Zero Dividend
Preference shareholders - (81,201) -
----------------------------------------------------------- ----------------- ----------------- -------------------
Net assets 71,342 62,238 67,797
----------------------------------------------------------- ----------------- ----------------- -------------------
Capital and reserves
Called up share capital 685 685 685
Share premium 4,627 4,627 4,627
Other reserve 60,550 60,528 60,539
Capital redemption reserve 8 8 8
Capital reserves (1,855) (10,441) (4,367)
Revenue reserve 7,327 6,831 6,305
----------------------------------------------------------- ----------------- ----------------- -------------------
Total shareholders' funds 71,342 62,238 67,797
----------------------------------------------------------- ----------------- ----------------- -------------------
Net asset value per share
(note 5)
Zero Dividend Preference share 186.0p 174.2p 180.0p
Ordinary share 104.1p 90.8p 98.9p
Notes to the financial statements
for the six months ended 31st August 2017
1. Financial statements
The information contained within the financial statements in this half year report has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 28th February 2017 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and including 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.
2. Accounting policies
The financial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland' and the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the Association of Investment Companies in November 2014 and updated in January 2017.
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 31st August 2017.
The Company has a fixed life and will be wound up voluntarily on or around 28th February 2018. Therefore, these half year financial statements have been prepared on a basis other than going concern. Fixed assets have been reclassified as current assets. The fair value for investments is deemed to be a proxy for realisable amount not withstanding the fact that the ultimate liquidation proceeds to shareholders will vary according to stock market movements. Creditors falling due after more than one year have been reclassified as current liabilities. A provision has been made for liquidation costs and the relevant estimates will be periodically reviewed and adjusted as appropriate.
The Company has elected not to prepare a Statement of Cash Flows for the current period, applying the exemption from FRS 102 section 7.1A(c).
The accounting policies applied to this condensed set of financial statements are consistent with those applied in the financial statements for the year ended 28th February 2017.
3. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months Six months
ended ended Year ended
31st August 31st August 28th February
2017 2016 2017
GBP'000 GBP'000 GBP'000
--------------------- ------------ ------------ --------------
Fourth quarterly
dividend of 2.00p
(2016: 2.05p(1)
) 1,371 1,405 1,405
First quarterly
dividend of 2.00p
(2017: 2.05p(1)
) 1,371 1,405 1,405
Second quarterly
dividend of 1.80p n/a n/a 1,234
Third quarterly
dividend of 1.80p n/a n/a 1,234
--------------------- ------------ ------------ --------------
Total dividends
paid in the period 2,742 2,810 5,278
--------------------- ------------ ------------ --------------
(1) Includes special dividends of 0.25p each paid in April and July in respect of the 2016 financial year.
A second quarterly dividend of 2.0p (2017: 1.80p) per Ordinary share amounting to GBP1,371,000 (2017: GBP1,234,000) has been declared payable in respect of the year ending 28th February 2018.
4. Return per class of share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 2017 31st August 2016 28th February 2017
GBP'000 GBP'000 GBP'000
------------------------------------------------------ ----------------- ----------------- -------------------
Return per Ordinary share is based on the following:
Revenue return 3,764 4,074 6,016
Capital return 2,512 1,838 7,912
------------------------------------------------------ ----------------- ----------------- -------------------
Total return 6,276 5,912 13,928
------------------------------------------------------ ----------------- ----------------- -------------------
Weighted average number of Ordinary shares in issue 68,556,782 68,556,782 68,556,782
Revenue return per Ordinary share 5.5p 5.9p 8.8p
Capital return per Ordinary share 3.7p 2.7p 11.5p
------------------------------------------------------ ----------------- ----------------- -------------------
Total return per Ordinary share 9.2p 8.6p 20.3p
------------------------------------------------------ ----------------- ----------------- -------------------
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 2017 31st August 2016 28th February 2017
GBP'000 GBP'000 GBP'000
-------------------------------------------------------- ----------------- ----------------- -------------------
Return per Zero Dividend Preference share is based on
the following:
Capital return - compound growth entitlement 2,784 2,609 5,304
-------------------------------------------------------- ----------------- ----------------- -------------------
Weighted average number of Zero Dividend Preference
shares in issue 46,612,200 46,612,200 46,612,200
-------------------------------------------------------- ----------------- ----------------- -------------------
Return per Zero Dividend Preference share 6.0p 5.6p 11.4p
-------------------------------------------------------- ----------------- ----------------- -------------------
5. Net asset value per share
The net asset values per share calculated in accordance with the Articles of Association are as follows:
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st August 2017 31st August 2016 28th February 2017
--------------------------------- ----------------- ----------------- -------------------
Zero Dividend Preference shares
Net assets (GBP'000) 86,680 81,201 83,896
Number of shares in issue 46,612,200 46,612,200 46,612,200
Net asset value per share 186.0p 174.2p 180.0p
--------------------------------- ----------------- ----------------- -------------------
Ordinary shares
Net assets (GBP'000) 71,342 62,238 67,797
Number of shares in issue 68,556,782 68,556,782 68,556,782
Net asset value per share 104.1p 90.8p 98.9p
--------------------------------- ----------------- ----------------- -------------------
17 October 2017
For further information, please contact:
Paul Winship
For and on behalf of
JPMorgan Funds Limited, Secretary
020 7742 4000
JPMORGAN FUNDS LIMITED
ENDS
A copy of the half year has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM
The half year will also be available shortly on the Company's website at www.jpmincomeandcapital.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLSIILDLID
(END) Dow Jones Newswires
October 17, 2017 10:13 ET (14:13 GMT)
1 Year JP Morgan Fleming & Cap It Chart |
1 Month JP Morgan Fleming & Cap It 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
