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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Value And Indexed Property Income Trust Plc | LSE:VIN | London | Ordinary Share | GB0008484718 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 221.00 | 221.00 | 224.00 | 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
TIDMVIN
RNS Number : 9154N
Value and Income Trust plc
01 November 2016
VALUE AND INCOME TRUST PLC
UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE SIX MONTHSED 30 SEPTEMBER 2016
SUMMARY
Hot Features
Premium
30 September 31 March 2016 30 September
2016 2015
Group net asset
value per share 300.20p 299.17p 284.13p
(valuing debt
at market)
Group net asset
value per share 331.33p 319.01p 309.89p
(valuing debt
at par)
Share price (mid) 247.50p 221.75p 237.25p
Dividend per
share 5.20p 10.50p 4.50p
(first and (total) (interim)
second interim)
Value and Income Trust PLC ('VIT') is a specialist investment trust whose shares are traded on the London Stock Exchange. VIT invests in higher yielding, less fashionable areas of the UK commercial property and equity markets, particularly in medium and smaller sized companies. VIT aims for long term real growth in dividends and capital values without undue risk. Figures for net asset values shown in the tables above and below are calculated after deducting dividends declared but not yet paid, as in previous years.
Over the six months ended 30 September 2016, VIT's share price rose by 11.6% while the net asset value per share, valuing debt at par, increased by 3.9%. The FTSE All-Share Index (the "Index") rose by 10.6% over the half year. VIT's property portfolio was revalued independently at 30 September 2016.
The Company announced on 24 August 2016 that it intended to pay quarterly dividends in the future. The first quarterly dividend of 2.6p per share was paid on 28 October 2016 to all shareholders on the register on 30 September 2016. The second quarterly dividend of 2.6p per share will be paid on 27 January 2017 to those shareholders on the register on 30 December 2016. The ex-dividend date will be 29 December 2016.
The third quarterly dividend will be paid on 28 April 2017 to those shareholders on the register on 31 March 2017. The ex-dividend date will be 30 March 2017. The Board will announce in due course the proposed fourth and final payment for the year, which subject to shareholder approval, will be paid on or around 28 July 2017.
Summary of Portfolio
30 September 31 March 2016 30 September
2016 2015
GBPm % GBPm % GBPm %
UK Equities 131.9 66 127.3 68 123.3 68
UK Property 61.0 30 55.1 30 52.9 29
Net current assets 7.9 4 3.1 2 5.1 3
________ ________ ________ ________ ________ ________
200.8 100 185.5 100 181.3 100
________ ________ ________ ________ ________ _______
ENQUIRIES: Angela Lascelles
OLIM Limited, Investment Manager,
Equities
Tel: 020 7408 7290
Website: www.olim.co.uk
Matthew Oakeshott
OLIM Property Limited, Investment
Manager, Property
Tel: 020 7647 6701
Website: www.olimproperty.co.uk
INTERIM BOARD REPORT
MANAGEMENT AND ADMINISTRATION OF VIT
Value and Income Services Limited (VIS), a wholly owned subsidiary of the Company, is the Company's Alternative Investment Fund Manager (AIFM). As AIFM, VIS has responsibility for the overall portfolio management and risk management of the assets of the Company. VIS has delegated its portfolio management responsibilities for the equity portfolio to OLIM Limited (OLIM) and for the property portfolio to OLIM Property Limited (OLIMP) (collectively the Investment Managers). The delegation by VIS of its portfolio management responsibilities is in accordance with the delegation requirements of the Alternative Investment Fund Managers Directive (AIFMD). The Investment Managers remain subject to the supervision and direction of VIS. The Investment Managers are responsible to VIS and ultimately to the Company in regard to the management of the investment of the assets of the Company in accordance with the Company's investment objectives and policies. VIS has a risk committee which reviews the effectiveness of the Company's internal controls and risk management systems and procedures and identifies, measures, manages and monitors the risks identified as affecting the Company's business.
BNP Paribas Securities Services is the Company's Depositary and oversees the Company's custody and cash arrangements.
PRINCIPAL RISKS AND UNCERTAINTIES
There is regular review of each of the principal risks and uncertainties which have been identified as affecting the Company's business. These risks and uncertainties are summarised below and are considered equally applicable to the second half of the financial year as for the period under review. Policies are in place for the management of each of these risks and uncertainties.
-- Discount volatility: The Company's shares may trade at a price which represents a discount to its underlying
net asset value.
-- Regulatory risk: The Group operates in a complex regulatory environment and therefore faces a number of
regulatory risks. A breach of S1158 of the Corporation Tax Act 2010 would result in the Company being subject to capital gains tax on portfolio investments. Breaches of other regulations, including the Companies Act 2006, the FCA Listing Rules or the FCA Disclosure and Transparency Rules, could lead to a number of detrimental outcomes and reputational damage. Breaches of controls by service providers to the Company could also lead to reputational damage or loss. The Audit and Management Engagement Committee monitors compliance with regulations by reviewing internal control reports from the Administrator and the Investment Managers.
-- Market price risk: The fair value of, or future cash flows from, a financial instrument held by the Group may fluctuate because of changes in market prices. This market price risk comprises three elements - price risk, interest rate risk and currency risk.
Price risk: Price risks (i.e. changes in market prices other than those arising from interest rate or currency risk) may affect the value of the Group's investments. It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular sector. For equities, asset allocation and stock selection both act to reduce market risk. The Investment Managers actively monitor market prices throughout the year and report to VIS and to the Board, which meet regularly in order to review investment strategy. The equity investments held by the Group are listed on the UK Stock Exchange and all investment properties held by the Group are commercial properties located in the UK with long, strong income streams.
Interest rate risk: Interest rate movements may affect the fair value of the investments in property and the level of income receivable on cash deposits. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions. The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Current borrowings comprise debenture stocks and the fifteen year secured term loan, providing secure long term funding. It is the Board's policy to maintain a gearing level, measured on the most stringent basis of calculation after netting off cash equivalents, of between 25% and 40%.
Currency risk: A small proportion of the Group's investment portfolio is invested in securities whose fair value and dividend stream are affected by movements in foreign exchange rates. It is not the Board's policy to hedge this risk.
-- Liquidity risk: This is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities. The Group's assets comprise of readily realisable securities which can be sold to meet commitments if required and investment properties which, by their nature, are less readily realisable.
-- Credit risk: This is the failure of a counterparty to a transaction to discharge its obligations under that transaction which could result in the Group suffering a loss. The risk is not significant and is managed as follows:
- investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the Investment Managers and limits are set on the amount that may be due from any one broker;
- the risk of counterparty exposure due to failed trades causing a loss to the Group is mitigated by the review of failed trade reports on a daily basis. In addition, a stock reconciliation to third party administrators' records is performed on a daily basis which ensures that discrepancies are picked up in a timely fashion. The Investment Managers' Compliance Officers carry out periodic reviews of the Depositary's operations and report their findings to the respective Investment Manager's Risk Management Committee and to VIS. This review will also include checks on the maintenance and security of investments held; and
- cash is held only with reputable banks with high quality external credit ratings.
-- Property risk: The Group's commercial property portfolio is subject to both market and specific property risk. Since the UK commercial property market has been markedly cyclical for many years, it is prudent to expect that to continue. The price and availability of credit, real economic growth and the constraints on the development of new property are the main influences on the property investment market. Against that background, the specific risks to the income from the portfolio are tenants being unable to pay their rents and other charges, or leaving their properties at the end of their leases. All leases are on full repairing and insuring terms, with upward only rent reviews. None of the Group's financial assets is impaired.
Statement of Directors' Responsibilities
The Directors confirm that to the best of their knowledge:
-- the condensed set of financial statements within the Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'; and
-- the Interim Board Report includes a true and fair review of the information required by 4.2.7R and 4.2.8R of the FCA's Disclosure and Transparency Rules.
For and on behalf of the Board of Value and Income Trust PLC
James Ferguson
Chairman
31 October 2016
VALUE AND INCOME TRUST PLC
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2016
As at As at As at
30 September 31 March 2016 30 September
2016 2015
(Unaudited) (Audited) (Unaudited)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ASSETS Notes
NON CURRENT ASSETS
Investments held
at fair value
through profit
or loss 131,852 127,266 123,280
Investment properties 61,025 55,125 52,900
8 192,877 182,391 176,180
CURRENT ASSETS
Cash and cash
equivalents 8,232 3,481 6,226
Other receivables 1,267 755 643
9,499 4,236 6,869
TOTAL ASSETS 202,376 186,627 183,049
CURRENT LIABILITIES
Other payables (1,582) (1,152) (1,727)
TOTAL ASSETS
LESS CURRENT
LIABILITIES 200,794 185,475 181,322
NON-CURRENT LIABILITIES
Borrowings (49,875) (40,167) (40,168)
150,919 145,308 141,154
EQUITY ATTRIBUTABLE
TO EQUITY HOLDERS
Called up share
capital 4,555 4,555 4,555
Share premium 18,446 18,446 18,446
Retained earnings 6 127,918 122,307 118,153
150,919 145,308 141,154
NET ASSET VALUE PER
ORDINARY SHARE 331.33p 319.01p 309.89p
VALUE AND INCOME TRUST PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2016
6 months ended 6 months ended Year ended
30 September 30 September 31 March 2016
2016 2015
(Unaudited) (Unaudited) (Audited)
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
Notes
INCOME
Dividend income 3,418 - 3,418 3,337 - 3,337 5,898 - 5,898
Other operating
income 2 2,004 - 2,004 2,069 - 2,069 3,938 - 3,938
5,422 - 5,422 5,406 - 5,406 9,836 - 9,836
GAINS AND LOSSES
ON INVESTMENTS
Realised gains
on
held-at-fair-value
investments
and investment
properties - 1,312 1,312 - 123 123 - 1,759 1,759
Unrealised
gains/(losses)
on
held-at-fair-value
investments
and investment
properties - 4,376 4,376 - (8,263) (8,263) - (5,295) (5,295)
TOTAL INCOME 5,422 5,688 11,110 5,406 (8,140) (2,734) 9,836 (3,536) 6,300
EXPENSES
Investment
management
fees (187) (435) (622) (191) (445) (636) (361) (843) (1,204)
Other operating
expenses (157) - (157) (365) - (365) (777) - (777)
FINANCE COSTS (1,987) - (1,987) (1,852) - (1,852) (3,702) - (3,702)
TOTAL EXPENSES (2,331) (435) (2,766) (2,408) (445) (2,853) (4,840) (843) (5,683)
PROFIT/(LOSS)
BEFORE TAX 3,091 5,253 8,344 2,998 (8,585) (5,587) 4,996 (4,379) 617
TAXATION - - - - - - - - -
TOTAL COMPREHENSIVE
INCOME FOR
THE PERIOD 3,091 5,253 8,344 2,998 (8,585) (5,587) 4,996 (4,379) 617
EARNINGS PER
ORDINARY SHARE
(Pence) 3 6.79 11.53 18.32 6.58 (18.84) (12.26) 10.97 (9.61) 1.36
The total column of this statement represents the Statement
of Comprehensive Income of the Group, prepared in accordance
with IFRS. The revenue return and capital return columns
are supplementary to this and are prepared under guidance
issued by the Association of Investment Companies. All
items in the above statement derive from continuing operations.
All income is attributable to the equity holders of Value
and Income Trust PLC, the parent company. There are no
minority interests.
The Board has declared a first interim dividend of 2.60p
per share which was paid on 28 October 2016 to those shareholders
on the register on 30 September 2016 with an ex-dividend
date of 29 September 2016 and a second interim dividend
of 2.6p per share which will be paid on 27 January 2017
to those shareholders on the register on 30 December 2016
with an ex-dividend date of 29 December 2016. The 2015
equivalent dividend rate was 4.50p per share. The third
quarterly dividend will be paid on 28 April 2017 to those
shareholders on the register on 31 March 2017. The ex-dividend
date will be 30 March 2017.
VALUE AND INCOME TRUST PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2016
6 months ended 30 Year ended 31 March
September 2016 2016
(Unaudited) (Audited)
Share Share Retained Share Share Retained
capital premium earnings Total capital premium earnings Total
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Net assets
at 31 March
2016 4,555 18,446 122,307 145,308 4,555 18,446 125,881 148,882
Net profit/(loss)
for the period - - 8,344 8,344 - - 617 617
Dividends paid 4 - - (2,733) (2,733) - - (4,191) (4,191)
_______ _______ _______ ______ ______ _______ _______ ______
NET ASSETS AT 30
SEPTEMBER 2016 4,555 18,446 127,918 150,919 4,555 18,446 122,307 145,308
_______ _______ _______ ______ ______ _______ _______ ______
6 months ended 30
September 2015
(Unaudited)
Share Share Retained
capital premium earnings Total
Notes GBP'000 GBP'000 GBP'000 GBP'000
Net assets
at 31 March
2015 4,555 18,446 125,881 148,882
Net (loss)/profit
for the
period - - (5,587) (5,587)
Dividends paid 4 - - (2,141) (2,141)
_______ _______ _______ ______
4,555 18,446 118,153 141,154
_______ _______ _______ _______
VALUE AND INCOME TRUST PLC
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHSED 30 SEPTEMBER 2016
6 months ended 6 months ended Year ended
30 September 30 September 31 March 2016
2016 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
CASH FLOWS FROM OPERATING
ACTIVITIES
Dividend income received 3,551 3,126 5,608
Rental income received 2,522 2,109 3,374
Interest received 1 1 1
Operating expenses
paid (878) (847) (1,830)
________ ________ ________
NET CASH INFLOW FROM
OPERATING ACTIVITIES 5,196 4,389 7,153
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of investments (11,158) (2,273) (8,935)
Sale of investments 5,650 3,406 8,462
________ ________ ________
NET CASH (OUTFLOW)/INFLOW
FROM INVESTING ACTIVITIES (5,508) 1,133 (473)
CASH FLOW FROM FINANCING
ACTIVITIES
Loans drawn down 9,703 - -
Interest paid (1,907) (1,848) (3,701)
Dividends paid (2,733) (2,141) (4,191)
________ ________ ________
NET CASH INFLOW/(OUTFLOW)
FROM FINANCING ACTIVITIES 5,063 (3,989) (7,892)
________ ________ ________
NET INCREASE/(DECREASE)
IN CASH AND CASH EQUIVALENTS 4,751 1,533 (1,212)
Cash and cash equivalents
at the start of the
period 3,481 4,693 4,693
________ ________ ________
CASH AND CASH EQUIVALENTS
AT THE OF THE
PERIOD 8,232 6,226 3,481
________ ________ ________
VALUE AND INCOME TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
1 Accounting policies
(a) The financial statements have been prepared
in accordance with International Financial Reporting
Standards (IFRSs) which comprise standards and
interpretations approved by the International
Accounting Standards Board (IASB) together with
interpretations of the International Accounting
Standards and Standing Interpretations Committee
approved by the International Accounting Standards
Committee (IASC) that remain in effect, and
to the extent that they have been adopted by
the European Union.
The functional and presentational currency of
the Group is pounds sterling because that is
the currency of the primary economic environment
in which the Group operates. The financial statements
and the accompanying notes are presented in
pounds sterling and rounded to the nearest thousand
pounds except where otherwise indicated.
The financial statements have been prepared
on a going concern basis and on the historical
cost basis, except for the revaluation of certain
financial assets. Where presentational guidance
set out in the Statement of Recommended Practice
'Financial Statements of Investment Trust Companies
and Venture Capital Trusts' (the SORP) issued
by the Association of Investment Companies (AIC)
in November 2014 is consistent with the requirements
of IFRSs, the Directors have sought to prepare
the financial statements on a basis compliant
with the recommendations of the SORP, except
for the allocation of finance costs to revenue.
The Board has considered the requirements of
IFRS 8, 'Operating Segments'. The Board is charged
with setting the Group's investment strategy.
The Board has delegated the day to day implementation
of this strategy to the Investment Managers
but the Board retains responsibility to ensure
that adequate resources of the Group are directed
in accordance with its decisions. The Board
is of the view that the Group is engaged in
a single segment of business, being investments
in quoted UK equities and UK commercial properties.
The view that the Group is engaged in a single
segment of business is based on the fact that
one of the key financial indicators received
and reviewed by the Board is the total return
from the investment portfolio taken as a whole.
A review of the investment portfolio is included
in the Investment Managers' Reports.
All expenses and finance costs are accounted
for on an accruals basis. Expenses are presented
as capital where a connection with the maintenance
or enhancement of the value of investments can
be demonstrated. In this respect and in accordance
with the SORP, the investment management fees
are allocated 30% to revenue and 70% to capital
to reflect the Board's expectations of long
term investment returns. Any performance fees
payable are allocated to capital, reflecting
the fact that, although they are calculated
on a total return basis, they are expected to
be attributable largely to capital performance.
It is normal practice and in accordance with
the SORP for investment trust companies to allocate
finance costs to capital on the same basis as
the investment management fee allocation. However
as the Group has a significant exposure to property,
and property companies allocate finance costs
to revenue to match rental income, the directors
consider that, contrary to the SORP, it is inappropriate
to allocate finance costs to capital.
The Group's financial statements have been prepared
using the same accounting policies as those
applied for the financial statements for the
year ended 31 March 2016 which received an unqualified
audit report.
(b) Going concern
The Group's business activities, together with
the factors likely to affect its future development
and performance, are set out in the Interim
Board Report. The financial position of the
Group as at 30 September 2016 is shown in the
Statement of Financial Position. The cash flows
of the Group for the half year to 30 September
2016, which are not untypical, are set out in
the Group Cash Flow Statement. The Group had
fixed debt totalling GBP49,875,000 as at 30
September 2016; none of the borrowings is repayable
before 2021. The Group had no short term borrowings.
As at 30 September 2016, the Group's total assets
less current liabilities exceeded its total
non-current liabilities by a factor of over
four.
The assets of the Group consist mainly of securities
and investment properties that are held in accordance
with the Group's investment policy. Most of
these securities are readily realisable, even
in volatile markets. The Directors, who have
reviewed carefully the Group's forecasts for
the coming year, consider that the Group has
adequate financial resources to enable it to
continue in operational existence for the foreseeable
future. Accordingly the Directors believe that
it is appropriate to continue to adopt the going
concern basis in preparing the Group's financial
statements.
(c) Basis of consolidation
The consolidated financial statements incorporate
the financial statements of the Company and
the entity controlled by the Company (its subsidiary).
An investor controls an investee when it is
exposed, or has rights, to variable returns
from its involvement with the investee and has
ability to affect those returns through its
power over the investee. The Company consolidates
the investee that it controls. All intra-group
transactions, balances, income and expenses
are eliminated on consolidation. Value and Income
Service Limited is a private limited company
incorporated in Scotland under company number
SC467598. It is a wholly owned subsidiary of
the Company and has been appointed to act as
the Alternative Investment Fund Manager of the
Company.
(d) Presentation of Statement of Comprehensive Income
In order to reflect better the activities of
an investment trust company and in accordance
with guidance issued by the AIC, supplementary
information which analyses the Statement of
Comprehensive Income between items of a revenue
and capital nature has been presented alongside
the Statement of Comprehensive Income. In accordance
with the Company's Articles, any surplus arising
from the realisation of any investment may be
distributed.
(e) Dividends payable
Interim dividends are recognised as a liability
in the period in which they are paid as no further
approval is required in respect of such dividends.
Final dividends are recognised as a liability
only after they have been approved by shareholders
in general meeting.
(f) Investments
Equity investments
All investments have been designated upon initial
recognition as fair value through profit or
loss. Investments are recognised and derecognised
on the trade date where a purchase or sale is
under a contract whose terms require delivery
within the timeframe established by the market
concerned, and are initially measured at fair
value.
Subsequent to initial recognition, investments
are recognised at fair value through profit
or loss. For listed investments, this is deemed
to be bid market prices or closing prices for
SETS stocks sourced from the London Stock Exchange.
SETS is the London Stock Exchange electronic
trading service covering most of the market
including all FTSE 100 constituents and most
liquid FTSE 250 constituents along with some
other securities. Gains and losses arising from
changes in fair value are included in net profit
or loss for the period as a capital item in
the Statement of Comprehensive Income and are
ultimately recognised in the retained earnings.
Investment properties
Investment properties are initially recognised
at cost, being the fair value of consideration
given, including transaction costs associated
with the investment property. Any subsequent
capital expenditure incurred in improving investment
properties is capitalised in the period incurred
and included within the book cost of the property.
After initial recognition, investment properties
are measured at fair value, with gains and losses
recognised in the Statement of Comprehensive
Income.
The Group leases out all of its properties on
operating leases. A property held under an operating
lease is classified and accounted for as an
investment property where the Group holds it
to earn rental, capital appreciation or both.
Any such property leased under an operating
lease is carried at fair value. Fair value is
established by half-yearly professional valuation
on an open market basis by Savills (UK) Limited,
Chartered Surveyors and Valuers, and in accordance
with the RICS Valuation Professional Standards.
The determination of fair value by Savills is
supported by market evidence.
It is not more heavily based on other factors
because of the nature of the properties and
the availability of comparable market data.
2 Other operating
income
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Rental income 2,003 2,068 3,937
Interest receivable
on short term
deposits 1 1 1
________ ________ _________
2,004 2,069 3,938
________ _________ _________
3 Return per ordinary share
The return per ordinary share is based on the
following figures:
6 months 6 months ended Year ended
ended
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Revenue return 3,091 2,998 4,996
Capital return 5,253 (8,585) (4,379)
Weighted average
ordinary
shares in issue 45,549,975 45,549,975 45,549,975
Return per share
- revenue 6.79p 6.58p 10.97p
Return per share
- capital 11.53p (18.84p) (9.61p)
_________ _________ _________
Total return
per share 18.32p (12.26p) 1.36p
_________ _________ _________
6 months 6 months Year ended
ended 30 ended 30 31 March
September September 2016
2016 2015
GBP'000 GBP'000 GBP'000
4 Dividends paid
Dividends on ordinary
shares:
Final dividend of 6.00p
per share (2015 - 4.70p)
paid 15 July 2016 2,733 2,141 2,141
Interim dividend of
4.50p per share (2015
- 4.30p) paid 4 January
2016 - - 2,050
_________ _________ _________
2,733 2,141 4,191
_________ _________ _________
5 Interim dividend
The directors have declared a first interim dividend
of 2.60p per ordinary share, paid on 28 October
2016 to shareholders registered on 30 September
2016, with an ex-dividend date of 29 September
2016 and a second interim dividend of 2.60p per
share, payable on 27 January 2017 to shareholders
registered on 30 December 2016, with an ex-dividend
date of 29 December 2016. The 2015 equivalent
dividend rate was 4.50p per share.
6 Retained earnings
The table below shows the movement in retained
earnings analysed between revenue and capital
items.
Revenue Capital Total
GBP'000 GBP'000 GBP'000
At 31 March 2016 4,892 117,415 122,307
Movement during
the period:-
Profit for the
period 3,091 5,253 8,344
Dividends paid
on ordinary shares (2,733) - (2,733)
________ ________ ________
At 30 September
2016 5,250 122,668 127,918
________ ________ ________
7 Transaction costs
During the period, expenses were incurred in
acquiring and disposing of investments classified
as fair value through profit or loss. These have
been expensed through capital and are included
within gains and losses on investments in the
Statement of Comprehensive Income.
6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2016
2016 2015
GBP'000 GBP'000 GBP'000
The total costs
are as follows:-
Purchases 6 5 32
Sales 3 1 4
_________ _________ _________
9 6 36
_________ _________ _________
8 Fair value hierarchy disclosures
The table below sets out fair value measurements
using the IFRS 13 Fair Value hierarchy:-
Level Level Level 3 Total
1 2 GBP'000 GBP'000
GBP'000 GBP'000
At 30 September 2016
(unaudited)
Equity investments 131,852 - - 131,852
Investment properties - 61,025 - 61,025
_________ _________ _________ _________
131,852 61,025 - 192,877
Borrowings - (64,178) - (64,178)
_________ _________ _________ _________
131,852 (3,153) - 128,699
_________ _________ _________ _________
At 31 March 2016
(audited)
Equity investments 127,266 - - 127,266
Investment properties - 55,125 - 55,125
_________ _________ _________ _________
127,266 55,125 - 182,391
Borrowings - (52,190) - (52,190)
_________ _________ _________ _________
127,266 2,935 - 130,201
_________ _________ _________ _________
Level Level Level 3 Level
1 2 GBP'000 4
GBP'000 GBP'000 GBP'000
At 30 September 2015
(unaudited)
Equity investments 123,280 - - 123,280
Investment properties - 52,900 - 52,900
_________ _________ _________ _________
123,280 52,900 - 176,180
Borrowings - (51,733) - (51,733)
_________ _________ _________ _________
123,280 1,167 - 124,447
_________ _________ _________ _________
Categorisation within the hierarchy has been determined
on the basis of the lowest level input that is significant
to the fair value measurement of the relevant asset
as follows:-
Level 1 - valued using quoted prices in an active
market for identical assets
Level 2 - valued by reference to valuation techniques
using observable inputs other than quoted prices
Level 3 - valued by reference to valuation techniques
using inputs that are not based on observable market
data
The fair values of the debentures are determined
by comparison with the fair values of equivalent
gilt edged securities, discounted to reflect the
differing levels of credit worthiness of the borrowers.
The fair value of the loan is determined by a discounted
cash flow calculation based on the appropriate inter-bank
rate plus the margin per the loan agreement. All
other assets and liabilities of the Group are included
in the balance sheet at fair value.
There were no transfers between levels during the
period.
9 Relationship with the Portfolio Managers and other
Related Parties
Angela Lascelles is a Director of OLIM Limited
which has an agreement with the Group to provide
investment management services.
Matthew Oakeshott is a Director of OLIM Property
Limited which has an agreement with the Group
to provide property management services.
OLIM and OLIM Property receive an investment management
fee of 2/3 of 1% of the Group's total assets,
which is allocated 70% to OLIM and 30% to OLIM
Property.
OLIM and OLIM Property are also entitled to a
performance fee, subject to the achievement of
certain criteria. The objective is to give the
Managers a performance fee of 10% of any out-performance
of the VIT share price total return (VIT SPTR)
over the FTSE All-Share Index share price total
return (FTSE SPTR).
The performance fee is paid annually in respect
of performance over the preceding three years.
The fee is payable only if the VIT SPTR has been
positive over the period and, in addition, the
NAV total return has been positive and has exceeded
the FTSE SPTR over the period.
The maximum performance fee payable in any year
is 1/3 of 1% of VIT's total assets and is allocated
70% to OLIM and 30% to OLIM Property. The fee
is charged wholly to capital.
OLIM Limited received an investment management
fee of GBP435,000 (half year to 30 September 2015:
GBP461,000 and year to 31 March 2016: GBP873,000
including a performance fee of GBPnil). At the
period end, the balance owed by the Group to OLIM
Limited was GBP71,000 (31 March 2016: GBP72,000)
comprising management fees for the month of September
2016, subsequently paid in October 2016.
OLIM Property Limited received an investment management
fee of GBP187,000 (half year to 30 September 2015:
GBP175,000 and year to 31 March 2016: GBP331,000
including a performance fee of GBPnil). At the
period end, the balance owed by the Group to OLIM
Property Limited was GBP30,000 (31 March 2016:
GBP27,000) comprising management fees for the
month of September 2016, subsequently paid in
October 2016.
Value and Income Services Limited is a wholly
owned subsidiary of Value and Income Trust PLC
and all costs and expenses are borne by Value
and Income Trust PLC. Value and Income Services
Limited has not traded during the period.
10 Half Yearly Report
The financial information contained in this Half
Yearly Report does not constitute statutory accounts
as defined in sections 434 - 436 of the Companies
Act 2006. The financial information for the six
months ended 30 September 2016 and 30 September
2015 has not been audited.
The figures and financial information for the
year ended 31 March 2016 has been extracted and
abridged from the latest published audited financial
statements and do not constitute the statutory
accounts for that year. Those financial statements
have been filed with the Registrar of Companies
and included the Report of the Independent Auditor,
which contained no qualification or statement
under section 498 (2), (3) or (4)
of the Companies Act 2006.
11 Approval
This Half Yearly Report was approved by the Board
on 31 October 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DFLFXQBFBFBK
(END) Dow Jones Newswires
November 01, 2016 03:00 ET (07:00 GMT)
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