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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mithras Inv.Tst | LSE:MTH | London | Ordinary Share | GB0005962864 | ORD 2P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 240.00 | 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
TIDMMTH
RNS Number : 4380F
Mithras Investment Trust PLC
27 July 2016
MITHRAS INVESTMENT TRUST PLC (the "Company")
Interim Financial Results for the six months ended 30 June 2016
Announcement of Unaudited Results
This announcement contains regulated information.
Financial Summary
Group Financial Highlights
Hot Features
Premium
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
Net assets attributable
to owners of the
Company GBP26.3 million GBP30.9 million GBP33.7 million
Number of Ordinary
shares in issue
at end of period 14,228,143 19,490,606 19,490,606
Net Asset Value
("NAV") per Ordinary
share 185.2 pence 158.4 pence 173.0 pence
Mid market quoted
share price 152.0 pence 146.5 pence 146.5 pence
Discount 17.9% 7.5% 15.3%
Cash distributions to shareholders during the period
(dividends paid plus tender offers)
- Dividends paid GBP0.2 million GBP0.2 million GBP0.2 million
* Tender offer proceeds GBP9.1 million GBP6.1 million GBP6.1 million
----------------- ----------------- ----------------
GBP9.3 million GBP6.3 million GBP6.3 million
----------------- ----------------- ----------------
- Tender offer
proceeds per Ordinary
share 45.9 pence 25.8 pence 25.8 pence
Total return/(loss)
before tax GBP1.9 million (GBP0.6 million) GBP2.3 million
Net dividends proposed
per Ordinary share - - 1.0 pence
Ongoing charges
(annualised)(1) 1.6% 1.5% 1.4%
Total expense ratio
(annualised)(2) 2.4% 2.2% 2.1%
(1) The ongoing charges figures have been calculated using the Association of Investment Companies' ("AIC") recommended methodology and relate to the ongoing costs of running the Company. Subsidiary expenses, such as those incurred by MCP and non-recurring fees are therefore excluded from the calculation.
(2) The ratio reflects the ongoing expense for the Group. This follows the AIC guidance in calculating ongoing charges, but includes ongoing expenses of all subsidiaries.
Performance (Total Return) at 30 June 2016
Since
6 months 1 Year 3 Year 5 Year Flotation
% % % % %
Share price 4.4 4.4 23.5 46.3 337.4
NAV* 7.6 17.5 27.1 24.5 340.8
FTSE All-Share
Index 4.3 2.2 18.6 35.5 344.6
*Returns based on NAV per share adjusted for dividends paid. The return since flotation is based on Group total return after tax before dividends, attributable to owners on opening owners' equity.
Summary Financial Information Following the Approval of the Realisation Strategy
Tender
Dividends offer
paid per proceeds
Share Ordinary per Ordinary
Net assets* NAV price Discount share** share
GBPm p p % p p
31 December 2009 49.8 137.2 69.0 49.7 5.0 -
31 December 2010 53.3 146.8 112.5 23.4 2.0 -
31 December 2011 52.7 145.1 99.5 31.4 2.0 -
31 December 2012 52.0 143.1 112.5 21.4 2.0 -
31 December 2013 44.3 160.4 137.5 14.3 1.0 37.6
31 December 2014 37.8 162.1 142.5 12.1 1.0 24.0
31 December 2015 33.7 173.0 146.5 15.3 1.0 25.8
30 June 2016 26.3 185.2 152.0 17.9 1.0 45.9
* Attributable to owners of the Company.
** This is the dividend in pence per Ordinary share paid during the calendar year, declared in the previous year.
Investment Manager's Review
Overview of Results for the Six Months ended 30 June 2016
The Company's NAV increased from 173.0 pence per share to 185.2 pence per share in the six months to 30 June 2016, an increase of 7.1%. This increase is after the final dividend of 1.0 pence per share paid in May 2016. The Company's NAV benefited significantly from the weakening of Sterling against the Euro and the US Dollar especially post the EU referendum result. Sterling weakened by 11.3% against the Euro and by 9.3% against the US Dollar during the period.
The Company completed its fifth tender offer in April 2016, buying back 27.0% of the remaining Ordinary shares in issue and returning GBP9.0 million of cash to shareholders. The fifth tender offer was well supported with 77% of shareholders tendering their shares. The Company has now returned a gross total of GBP34.9 million to shareholders by way of tender offers which equates to a total capital return of 94.6 pence per share or the cancellation of approximately 61% of the original shares in issue.
Consistent with previous Interim Reports, these results are based upon the 31 March 2016 underlying fund valuations, being the latest available information. The Board has made a Directors' revaluation adjustment at 30 June 2016, making a provision of GBP0.3 million against the current valuation of the MCF portfolio. Portfolio company performance was generally encouraging despite the current economic uncertainty that surrounds Europe and the UK.
During the period, the share price increased from 146.5 pence per share to 152.0 pence per share, an increase of 3.8% in what has been a volatile market. The Company's discount widened from 15.3% to 17.9% reflecting market uncertainty and investor sentiment towards investment trusts and private equity in particular. The Company's total return for the period of 4.4% compared to an increase of 4.3% in the Company's benchmark, the FTSE All-Share Index.
Dividend
As reported in the 2015 Annual Financial Report and approved by shareholders at the 2016 Annual General Meeting ("AGM"), a final dividend of 1.0 pence per share (2015: 1.0 pence final) was paid in May 2016 in respect of the year ended 31 December 2015. Shareholders should continue to expect the majority of future returns to be in the form of capital distributions.
Investment Activity within MCF
Given the Company's fully invested status, there was minimal new investment activity within MCF during the period. MCF retained approximately GBP0.2 million of distribution proceeds to meet its ongoing obligations. In terms of underlying fund investment activity, PAI Europe V called funds for the add-on acquisition of Safegate to ADB Airfield Solutions and CVC Europe V made an add-on investment to ista, although this did not require funding. PAI Europe V also announced a joint venture between portfolio company R&R Ice Cream and Nestle, which is due to complete later this year although this did not require further capital from MCF.
Realisations from MCF
The first quarter of 2016 was one of the strongest quarters for distributions received by MCF with the Company receiving gross distribution proceeds of GBP6.3 million during the first half of 2016 (June 2015: GBP4.6 million). This was despite a marked deterioration in market conditions for exits during the second quarter largely due to the uncertainty surrounding the EU and Brexit. As reported at the 2016 AGM, PAI Europe V provided the largest distribution proceeds during the period exiting Swissport at a gross multiple of 3.1x cost and Hunkemoeller at a gross multiple of 2.2x cost for combined total distribution of GBP2.1m. CVC Europe V exited Avolon and Raet for multiples in excess of 2.0x cost. OCM Principal Opportunities Fund IV exited Fu Sheng and Alliance Healthcare Services. Riverside Europe III sold Diatron for a gross multiple of 2.6x cost. OCM Principal Opportunities Fund IV exited Fu Sheng and Alliance Healthcare Services and subsequent to 30 June 2016 OCM Principal Opportunities Fund IV floated AdvancePierre Foods at a premium to its current valuation. Riverside Europe III sold Diatron for a gross multiple of 2.6x cost.
Liquidity and Outstanding Commitments
The Group's liquidity position continues to be strong. During the period the Group's cash position decreased from GBP6.8 million to GBP3.6 million although this was after GBP9.0 million was returned to shareholders in the fifth tender offer and a further GBP0.2 million for the 1.0 pence per share dividend paid in May 2016.
Excluding subsidiary company cash balances, the Company's cash balance of GBP2.8 million compares to a maximum outstanding commitment to MCF at 30 June 2016 of GBP3.3 million although our current expectation is that only GBP0.5 million could be drawn, leaving a cash surplus of GBP2.3 million.
Principal Risks and Uncertainties
The Company's investment activities expose it to various types of risks that are associated with its investment commitments to private equity limited partnerships. The principal risks are market risk, currency risk and liquidity risk in respect of these investments. Other key risks faced by the Company include investment strategy, management resources, regulatory, operational and financial risks. These risks, and the way in which they are managed, are described in more detail under the heading "Principal Risks and Uncertainties" within the Strategic Report in the Company's Annual Financial Report for the year ended 31 December 2015 as well as note 20 entitled "Financial Instruments, Capital and Risk Management". The Company's principal risks and uncertainties have not changed materially since the date of that report.
Outlook
Over the last few years, periods of uncertainty and volatility in financial markets have become increasingly common. The EU referendum result has clearly triggered another such period, which is likely to continue in the short-term.
Whilst the Company's NAV has benefitted from the recent weakness of Sterling, particularly against the Euro, continued economic and political uncertainty is likely to have a negative effect on market conditions for exits. Although it is difficult to predict what the longer-term impact of Brexit might be on the trading performance of the Company's remaining portfolio, the GP's of our underlying funds have stressed that they expect the impact to be limited.
Despite the uncertain environment, a number of further potential exits are being pursued. We remain optimistic that the Company will continue to make progress in delivering its exit strategy.
Mithras Capital Partners LLP
Investment Manager
27 July 2016
Consolidated Investment Portfolio
At 30 June 2016
Fair Value % of
Investments at Fair Value GBP'000 Portfolio
MCF limited partnership fund investments
CVC European Equity Partners V 6,665 29
OCM Principal Opportunities Fund IV 6,546 28
PAI Europe V 4,040 18
Doughty Hanson & Co V 4,008 17
Riverside Europe Fund III 2,189 10
Net current assets held in MCF 81 -
Directors' revaluation adjustment (364) (2)
--------- ---------
Total investment portfolio 23,155 100
===== =====
Geographical spread of investments
by fund currency exposure*
Continental Europe (EUR) 16,528 72
North America (USD) 6,546 28
United Kingdom (GBP) 81 -
--------- ---------
Total investment portfolio 23,155 100
===== =====
* Fund currency exposure is based on the reporting currency of the underlying fund.
Listed below are the ten largest underlying investments by value which account for 66% of the consolidated investment portfolio. All of these investments are held indirectly through the Company's commitment to MCF.
Top Ten Largest Underlying Investments within MCF
Portfolio Underlying Year of
Company Sector Country Fund Investment % of Portfolio
---------------- ------------- ------------- ---------------- ------------- ---------------
Doughty
Hanson
TMF Group Services Netherlands & Co V 2008 14%
OCM Principal
AdvancePierre Food & United Opportunities
Foods Beverage States Fund IV 2008 13%
OCM Principal
Cyanco Basic United Opportunities
Holdings Resources States Fund IV 2008 7%
CVC European
Equity
Partners
Quironsalud Healthcare Spain V 2011 6%
Riverside
OrthoD United Europe
Group Healthcare Kingdom Fund III 2008 5%
Cerba European PAI Europe
Lab Healthcare France V 2010 5%
Building
Materials PAI Europe
Xella & Others Germany V 2008 4%
R&R Ice Food & United PAI Europe
Cream Beverage Kingdom V 2013 4%
Dayton Industrial OCM Principal
Superior Goods United Opportunities
Corporation & Services States Fund IV 2008 4%
CVC European
Travel, Equity
Leisure Partners
Ahlsell & Retail Sweden V 2012 4%
Consolidated Investment Portfolio Analysis
Underlying Investments by Year of Investment (by valuation)
Year % Pre-2010 51 2010 6 2011 14 2012 7 2013 13 2014 7 2015 2
Underlying Investments by Continent (by valuation)
Continent % Europe 72 United States 28
Underlying Investments by Sector (by valuation)
Sector % Services 21 Food & Beverage 18 Healthcare 15 Industrial Goods & Services 12 Travel, Leisure & Retail 10 Basic Resources 7 Building Materials & Others 7 Telecoms, Media & Technology 4 Financial Services & Insurance 4 Oil, Gas & Chemicals 2
Underlying Investments by Country (by valuation)
Country % North America 28 Benelux 15 UK 14 France 12 Germany 11 Scandinavia 9 Spain 5 Other Europe 5 Switzerland 1
Unaudited Condensed Consolidated Statement of Comprehensive Income
Six months ended 30
June 2016
Revenue Capital Total
return return return
Notes GBP'000 GBP'000 GBP'000
Income
Net gains on investments 9 - 2,013 2,013
Investment income 21 - 21
232 - 232
Other income 5 --------- --------- ---------
253 2,013 2,266
--------- --------- ---------
Expenses
(374) - (374)
Operating expenses 6 --------- --------- ---------
(Loss)/profit before taxation (121) 2,013 1,892
(3) - (3)
Taxation --------- --------- ---------
(Loss)/profit and total comprehensive
income for the period (124) 2,013 1,889
===== ===== =====
Attributable to:
Owners of the Company (140) 2,013 1,873
Non-controlling Interests 16 - 16
Basic and diluted (loss)/earnings
per Ordinary share (pence) 8 (0.8) 11.4 10.6
===== ===== =====
Six months ended 30
June 2015
Revenue Capital Total
return return return
Notes GBP'000 GBP'000 GBP'000
Income
Net losses on investments 9 - (806) (806)
Investment income 343 - 343
230 - 230
Other income 5 --------- --------- ---------
573 (806) (233)
--------- --------- ---------
Expenses
(384) - (384)
Operating expenses 6 --------- --------- ---------
Profit/ (loss) before taxation 189 (806) (617)
(11) - (11)
Taxation --------- --------- ---------
Profit/(loss) and total comprehensive
income for the period 178 (806) (628)
===== ===== =====
Attributable to:
Owners of the Company 163 (806) (643)
Non-controlling Interests 15 - 15
Basic and diluted earnings/(loss) 8 0.7 (3.5) (2.8)
per Ordinary share (pence) ===== ===== =====
The total column of this statement represents the Consolidated Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards ("IFRS"). The supplementary revenue return and capital return columns are both prepared under the guidance published by the AIC.
The notes form an integral part of these Condensed Consolidated Interim Financial Statements.
Unaudited Condensed Consolidated Statement of
Changes in Equity
For the six months ended 30 June 2016
Total
equity
attributable
Capital Realised Unrealised to owners Non-
Share redemption capital capital Revenue of the controlling
capital reserve reserve reserve reserve Company interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2016 390 445 40,688 (12,449) 4,644 33,718 21 33,739
Loss and
total
comprehensive
income for
the period - - - - (140) (140) 16 (124)
--------- --------- --------- --------- --------- --------- --------- ---------
Contributions
by and
distributions
to owners
Dividends
paid (note
7) - - - - (195) (195) - (195)
Gains on
disposal
of
investments - - 1,656 - - 1,656 - 1,656
Fair value
movements - - - 357 - 357 - 357
Profit share
paid to
members
in subsidiary - - - - - - (18) (18)
Cost of shares
purchased
for
cancellation
under tender
offer (105) 105 (9,051) - - (9,051) - (9,051)
--------- --------- --------- --------- --------- --------- --------- ---------
Total
contributions
by and
distributions (105) 105 (7,395) 357 (195) (7,233) (18) (7,251)
to owners --------- --------- --------- --------- --------- --------- --------- ---------
At 30 June 285 550 33,293 (12,092) 4,309 26,345 19 26,364
2016 ===== ===== ===== ======= ===== ===== ===== ======
Unaudited Condensed Consolidated Statement
of Changes in Equity
For the six months ended 30 June 2015
Total
equity
attributable
Capital Realised Unrealised to owners Non-
Share redemption capital capital Revenue of the controlling
capital reserve reserve reserve reserve Company interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2015 467 368 42,595 (10,180) 4,595 37,845 21 37,866
Profit and
total
comprehensive
income for
the period - - - - 163 163 15 178
--------- --------- --------- --------- --------- --------- --------- ---------
Contributions
by and
distributions
to owners
Dividends
paid (note
7) - - - - (233) (233) - (233)
Gains on
disposal
of
investments - - 2,376 - - 2,376 - 2,376
Fair value
movements - - - (3,182) - (3,182) - (3,182)
Profit share
paid to
members
in a
subsidiary - - - - - - (17) (17)
Cost of shares
purchased
for
cancellation
under tender (77) 77 (6,102) - - (6,102) - (6,102)
offer --------- --------- --------- --------- --------- --------- --------- ---------
Total
contribution
by and
distributions (77) 77 (3,726) (3,182) (233) (7,141) (17) (7,158)
to owners --------- --------- --------- --------- --------- --------- --------- ---------
At 30 June 390 445 38,869 (13,362) 4,525 30,867 19 30,886
2015 ===== ===== ===== ======= ===== ===== ===== ======
The notes form an integral part of these Condensed Consolidated Interim Financial Statements.
Unaudited Condensed Consolidated Balance Sheet
Unaudited Audited Unaudited
30 June 31 December 30 June
2016 2015 2015
Notes GBP'000 GBP'000 GBP'000
Non-current assets
Investments at fair value 23,155 27,218 27,621
through profit or loss 9 ---------- ---------- ----------
Current assets
Receivables 28 21 28
Current tax receivable - 58 -
3,562 6,824 3,633
Cash and cash equivalents ---------- ---------- ----------
3,590 6,903 3,661
---------- ---------- ----------
26,745 34,121 31,282
Total assets ---------- ---------- ----------
Current liabilities
Payables (139) (140) (169)
(42) (42) (27)
Current tax liability ---------- ---------- ----------
(181) (182) (196)
---------- ---------- ----------
Total assets less current 26,564 33,939 31,086
liabilities ===== ===== =====
Non-current liabilities
Retention arrangement
for key management personnel 12 (200) (200) (200)
====== ====== ======
Net assets 26,364 33,739 30,886
====== ====== ======
Equity attributable to
owners of the Company
Share capital 285 390 390
Capital redemption reserve 550 445 445
Capital reserve 21,201 28,239 25,507
4,309 4,644 4,525
Revenue reserve --------- ----------- ---------
Equity attributable to
owners of the Company 26,345 33,718 30,867
19 21 19
Non-controlling Interest ---------- ----------- ----------
Total equity 26,364 33,739 30,886
===== ===== =====
Net assets per Ordinary
share (pence) 185.2 173.0 158.4
* basic and diluted 10 ===== ===== =====
The notes form an integral part of these Condensed Consolidated Interim Financial Statements.
Unaudited Condensed Consolidated Cash Flow Statement
Six months Six months
ended ended
30 June 30 June
2016 2015
Notes GBP'000 GBP'000
Cash flows from operating
activities
Investment income received 21 343
Interest income received 15 13
Investment management fees
received 219 218
Cash paid to service providers (317) (344)
Compensation to key management
personnel (75) (74)
Taxation received 55 39
Purchase of investments 9 (159) (765)
6,235 4,317
Sale of investments 9 --------- ---------
Net cash flow from operating 5,994 3,747
activities --------- ---------
Cash flows from financing
activities
Equity dividends paid (195) (233)
Profit share distributed
to Non-controlling Interest (18) (17)
Tender offer proceeds (9,043) (6,115)
--------- ---------
Net cash flow from financing (9,256) (6,365)
activities --------- ---------
Net decrease in cash and
cash equivalents (3,262) (2,618)
Cash and cash equivalents 6,824 6,251
at beginning of period --------- ---------
Cash and cash equivalents 3,562 3,633
at end of period ===== =====
The notes form an integral part of these Condensed Consolidated Interim Financial Statements.
Notes to the Interim Financial Statements
1. General Information
Mithras Investment Trust plc is a company incorporated and domiciled in the United Kingdom. The Condensed Consolidated Interim Financial Statements of the Group for the six months ended 30 June 2016 comprise the Company and its subsidiaries, Mithras Investments Limited ("MIL"), Mithras Capital Holdings Limited ("MCH"), Mithras Capital Partners LLP ("MCP"), Mithras Capital Partners GP Limited ("MCGP") and Mithras Capital Scottish GP LLP ("MCSGP") together referred to as the "Group". The nature of the Group's operations and its principal activities are set out in note 4 Segment Reporting.
The Group's organisational structure is unchanged from the structure set out in note 17 of the Company's Annual Financial Report for the year ended 31 December 2015.
2. Statement of Compliance
These Condensed Consolidated Interim Financial Statements have been prepared in accordance with the Disclosure Guidance and Transparency and Listing Rules of the Financial Conduct Authority ("FCA") and with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the EU. They do not include all the information required for a full Annual Financial Report and should be read in conjunction with the Consolidated Financial Statements of the Group for the year ended 31 December 2015, which have been prepared in accordance with IFRS as adopted by the EU. The Directors have reviewed the guidance issued by the Financial Reporting Council in order to determine whether the going concern basis should be used in preparing the Financial Statements for the six months ending 30 June 2016. In doing so, the Directors have reviewed the likely operational costs and cash flows for the Group for the twelve months from the date of this Report and are of the opinion that the Group has adequate resources to continue in operational existence for the foreseeable future. The Directors have agreed that it is appropriate to continue to adopt the going concern basis in the preparation of the Financial Statements, as after due consideration, no material uncertainties that may cast significant doubt about the ability of the Group to continue as a going concern have been identified by the Directors.
The Condensed Consolidated Interim Financial Statements were authorised and approved for issue by the Board of Directors on 27 July 2016.
The Condensed Consolidated Interim Financial Statements do not comprise Statutory Accounts within the meaning of Section 434 of the Companies Act 2006. Statutory Accounts for the year ended 31 December 2015 were approved by the Board of Directors on 2 March 2016 and delivered to the Registrar of Companies. The Auditors' report on those Financial Statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.
The Interim Report and Financial Statements are being sent to shareholders and copies will be made available to the public at the Registered Office of the Company at 10 Harewood Avenue, London NW1 6AA and on the Company's website www.mithrasinvestmenttrust.com.
3. Significant Accounting Policies
The accounting policies and estimates applied are consistent with those of the Annual Financial Report for the year ended 31 December 2015. Those standards which have become applicable during the period have had no significant impact on the Group.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
4. Segment Reporting
The chief operating decision-maker has been identified as the Board of Directors. The Board reviews the Group's internal reporting in order to assess performance and allocate resources. The Board has determined the operating segments based on these reports.
The Board considers the operating segments to be investment activities and private equity fund-of- funds management. The Board assesses the performance of the Group based upon the KPI's as stated in the Strategic Report on pages 12 to 15 of the 2015 Annual Financial Report.
Investing activities represent the Group and Company's operations and commitment to MCF. Comprehensive income for this segment is derived from gains and losses on investments, income from investments, interest income and other income. The private equity fund-of-funds management business is undertaken by MCP. Revenue for this segment is primarily derived from management services provided to MCF.
Private equity
Investing fund-of-funds
activities management Consolidated
30 June 2016 GBP'000 GBP'000 GBP'000
Net gains on investments 2,013 - 2,013
Investment income 21 - 21
Interest income 13 - 13
Other income - 219 219
(241) (133) (374)
Operating expenses ---------- ----------- -----------
Profit before taxation 1,806 86 1,892
(3) - (3)
Taxation ---------- ----------- -----------
Profit for the period 1,803 86 1,889
===== ====== ======
Segment assets 26,607 138 26,745
(370) (11) (381)
Segment liabilities ---------- ----------- -----------
Net segment assets at 26,237 127 26,364
30 June 2016 ===== ====== ======
Private equity
Investing fund-of-funds
activities management Consolidated
31 December 2015 GBP'000 GBP'000 GBP'000
Net gains on investments 1,920 - 1,920
Investment income 602 - 602
Interest income 21 - 21
Other income - 440 440
(452) (277) (729)
Operating expenses ---------- ----------- -----------
Profit before taxation 2,091 163 2,254
(20) - (20)
Taxation ---------- ----------- -----------
Profit for the year 2,071 163 2,234
====== ======= =======
Segment assets 33,967 154 34,121
(364) (18) (382)
Segment liabilities ---------- ----------- -----------
Net segment assets at 33,603 136 33,739
31 December 2015 ====== ======= =======
Private equity
Investing fund-of-funds
activities management Consolidated
30 June 2015 GBP'000 GBP'000 GBP'000
Net gains on investments (806) - (806)
Investment income 343 - 343
Interest income 12 - 12
Other income - 218 218
(244) (140) (384)
Operating expenses ---------- ----------- -----------
(Loss)/profit before
taxation (695) 78 (617)
(11) - (11)
Taxation ---------- ----------- -----------
(Loss)/profit for the (706) 78 (628)
period ====== ======= =======
Segment assets 31,144 138 31,282
(382) (14) (396)
Segment liabilities ---------- ----------- -----------
Net segment assets at 30,762 124 30,886
30 June 2015 ====== ======= =======
5. Other Income
Six months Six months
ended ended
30 June 2016 30 June 2015
GBP'000 GBP'000
Investment management fee
income* 219 218
13 12
Deposit interest ----------- -----------
232 230
====== ======
*Investment management fee income is derived from priority profit share paid by MCF to MCGP.
6. Operating Expenses
Six months Six months
ended ended
30 June 2016 30 June 2015
GBP'000 GBP'000
Current Auditors' remuneration
- audit of the Consolidated 18 -
and Parent Company Financial
Statements
Previous Auditors' remuneration
- audit of the Consolidated
and Parent Company Financial
Statements - 18
Current Auditor's remuneration
- audit of the Company's subsidiaries 12 -
Previous Auditor's remuneration
- audit of the Company's subsidiaries - 13
Current Auditor's remuneration
- audit related assurance services 16 -
Previous Auditor's remuneration
- audit related assurance services - 18
Previous Auditor's remuneration
- tax compliance services - 6
Directors' emoluments 59 59
Compensation to key management
personnel 75 74
Other administrative expenses 194 196
----------- -----------
374 384
====== ======
Compensation to key management personnel includes payments made to members of MCP but excludes Directors' emoluments.
All expenses include VAT where applicable.
Auditors' remuneration for audit assurance services relate to the interim review of GBP14,000 (2015: GBP17,000) and fees relating to regulatory reporting of GBP2,000 (2015: GBP1,000).
Auditors' remuneration also included GBPnil (2015: GBP6,000) relating to tax compliance services.
There were no other non-audit services provided by the auditors other than those disclosed above.
Other administrative expenditure includes: administration fees, legal and professional fees, general office costs and other miscellaneous expenses.
The split of expenses incurred by the Company and MCP is disclosed above.
7. Dividends
The following dividends were declared by the Company:
Six months Six months
ended ended
30 June 30 June 2015
2016
GBP'000 GBP'000
Final paid in relation to the year
ended 31 December 2015: 1.0 pence (2015:
1.0 pence) per Ordinary 2.0 pence share 195 233
====== ======
The final dividend of 1.0 pence per Ordinary share, for the year ended 31 December 2015, was paid on 6 May 2016 on 19,490,606 shares.
8. Earnings per Ordinary Share
The calculation of the basic and diluted earnings per Ordinary share is based on the following data:
Six months ended Six months ended
30 June 2016 30 June 2015
Revenue Capital Revenue Capital
return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Earnings for the purpose
of basic earnings per
Ordinary share being
net (loss)/profit attributable (140) 2,013 1,873 163 (806) (643)
to owners ====== ====== ====== ====== ====== ======
Weighted average number
of Ordinary shares for
the purpose of calculating
basic earnings per Ordinary 17,640,070 22,937,749
share ========= =========
There is no dilution effect and therefore no difference between the diluted earnings per Ordinary share and the basic earnings per Ordinary share stated above.
9. Investments at Fair Value Through Profit and Loss
Six months Year ended Six months
ended 30 31 December ended 30
June 2015 June
2016 2015
GBP'000 GBP'000 GBP'000
Opening cost at beginning
of period 26,277 28,769 28,769
Gain at beginning of 941 3,210 3,210
period ---------- ---------- ----------
Opening fair value at 27,218 31,979 31,979
beginning of period ======= ======= =======
Movements in the period:
Purchases at cost 159 1,112 765
Sales - proceeds (6,235) (7,793) (4,317)
- gains on disposals 1,656 4,189 2,376
Unrealised fair value 357 (2,269) (3,182)
movements ---------- ---------- ----------
Closing fair value at 23,155 27,218 27,621
end of period ---------- ---------- ----------
Closing cost at end
of period 21,857 26,277 27,593
Gain at end of period 1,298 941 28
======= ======= =======
Closing fair value at 23,155 27,218 27,621
end of period ======= ======= =======
Analysis of net gain/(loss)
on investments
Gain on disposals 1,656 4,189 2,376
Fair value movements 357 (2,269) (3,182)
--------- --------- ---------
2,013 1,920 (806)
====== ====== ======
The Group is required to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
-- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and
-- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
The level of the fair value hierarchy, within which the fair value measurement is categorised, is determined on the basis of the lowest level input that is significant to the fair value of the investment.
All investments of the Group are classified within level 3 for the six months ended 30 June 2016 and for the 2015 financial year.
The Group values the underlying investments in the five private equity funds in which it invests in by reference to such investments' NAVs in line with the valuation methodology described in note 2 on page 48 of the Company's Annual Financial Report for the year ended 31 December 2015. Where considered appropriate, the Investment Manager adjusts these NAVs as audited NAVs as at 30 June 2016 were not available by the time these Interim Financial Statements were authorised for issue. These adjustments represent unobservable inputs that result in the private equity funds being classified as level 3 in the fair value hierarchy. Given the number of underlying investments, the Directors have not presented a sensitivity analysis at an individual input level for these investments as they do not deem it to be material. The Investment Manager does not prepare an aggregated input sensitivity analysis at a private equity fund level for all of the funds' investments, as it is not possible to calculate the effective correlation across investments.
There were no transfers between levels for the six months ended 30 June 2016, nor for the year ended 31 December 2015.
10. Net Assets per Ordinary Share
The basic total net assets per Ordinary share is based on the net assets attributable to owners shown in the Balance Sheet as at 30 June 2016, and on 14,228,143 Ordinary shares, being the number of Ordinary shares in issue at 30 June 2016 (30 June 2015: 19,490,606; 31 December 2015: 19,490,606).
There is no dilution effect and therefore no difference between the diluted total net assets per Ordinary share and the basic total net assets per Ordinary share stated above.
11. Guarantees and Commitments
(a) Guarantees
The Company has agreed to provide such financial support to MIL as it may require to continue trading as a going concern.
(b) Commitments
The Company has a maximum outstanding commitment of GBP3.3 million to MCF at 30 June 2016 (30 June 2015: GBP4.0 million; 31 December 2015: GBP3.7 million).
12. Related Party Transactions and Disclosures
The following note provides details of the Group and Company's related party disclosures and related party transactions during the period:
(a) Under the Investment Management Agreement, dated 27 March 2009, the Company paid fees of GBP32,000 (30 June 2015: GBP32,000; 31 December 2015: GBP64,000) to MCP, of which GBP16,000 was outstanding at 30 June 2016 (30 June 2015: GBP16,000; 31 December 2015: GBP16,000).
(b) Legal & General Assurance Society Limited held 32.92% of the Ordinary share capital of the Company as at 30 June 2016 (30 June 2015: 33.50%; 31 December 2015: 33.50%).
(c) Mr Boylan, the Managing Partner and Designated Member of MCP, in his personal capacity held 0.39% (30 June 2015: 0.36%; 31 December 2015: 0.36%) of the Ordinary share capital of the Company as at 30 June 2016. Mr Boylan is a member of MCP and has a profit entitlement of 15% of the profits in MCP (30 June 2015: 15%; 31 December 2015: 15%).
(d) Under a Retention Arrangement dated 5 November 2014, Mr Boylan would become entitled, on completion of the realisation strategy, to a sum of GBP200,000 in consideration for acquiring his 15% minority interest in MCP (referred to as the Non-controlling Interest within the Consolidated Financial Statements). The circumstances that will give rise to the completion of the realisation strategy could vary depending upon the choice of exit route taken by the Company and the arrangement is subject to good leaver provisions.
(e) The compensation payable to key management personnel (which includes members of MCP but excludes Directors of the Company) amounted to GBP75,000 (30 June 2015: GBP74,000; 31 December 2015: GBP149,000) paid as guaranteed drawings. Profit share distributed to the Non-controlling Interests (members of MCP) amounted to GBP18,000 (30 June 2015: GBP17,000; 31 December 2015: GBP32,000).
(f) The Company invests in MCF, which is managed by MCP. A carried interest scheme operates for the benefit of the founder partners in the scheme. The founder partners are Ms Gillian Brown, Mr Adrian Johnson and Mr Boylan. Carried interest of 10% of investment profits could become payable once MCF has returned all capital contributed by investors as well as exceeding a net IRR of 8% per annum. As at 30 June 2016, MCF's net fund IRR was 6.6% and therefore no provision for carried interest has been made against the valuation of MCF. No carried interest payments were made during the period or have been since the inception of MCF.
Statement of Directors' Responsibilities
In respect of the Interim Report and Financial Statements for the six months ended 30 June 2016, we confirm that to the best of our knowledge:
-- The Interim Report and Financial Statements have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" issued by the International Accounting Standards Board, as adopted by the EU and gives a true and fair view of the assets, liabilities, financial position and profit of the Company as required by DTR4.2.4R;
-- The Investment Manager's Review includes a true and fair review of the information required by DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of the important events that have occurred during the first six months of the financial year and their impact on the Interim Report and Financial Statements;
-- In accordance with DTR 4.2.8R of the Disclosure Guidance and Transparency Rules and as disclosed in note 12 of this Interim Report and Financial Statements, there have been no changes in the nature or magnitude of the related party transactions that have taken place in the first six months of the current financial year and, therefore, there is nothing to report on any material effect by such a transaction on the financial position or the performance of the Company during the period; and
-- In accordance with DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, the description of the principal risks and uncertainties is a fair review of the information required under DTR 4.2.7R for the remaining six months of the year.
On behalf of the Board
Mithras Investment Trust plc
Company Number: 2478424
William Maltby
Chairman
27 July 2016
Interim Report and Financial Statements
The Company's Interim Report and Financial Statements for the six months ended 30 June 2016 will be posted to shareholders in August 2016. Copies of the Interim Report and Financial Statements will be available from the Registered Office of the Company at 10 Harewood Avenue, London NW1 6AA and on the website, www.mithrasinvestmenttrust.com, which is a website maintained by the Company's Investment Manager, MCP. A copy of the Interim Report and Financial Statements for the six months ended 30 June 2016 has been submitted to the National Storage Mechanism of the UK Listing Authority and will shortly be available for inspection at: www.Hemscott.com/nsm.do.
For further information, please contact:
Susan Gledhill
Company Secretary
For and on behalf of
BNP Paribas Secretarial Services Limited
Tel: 020 7410 5971
27 July 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BUGDRXXDBGLR
(END) Dow Jones Newswires
July 27, 2016 11:40 ET (15:40 GMT)
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