We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Independent Investment Trust Plc | LSE:IIT | London | Ordinary Share | GB0000811686 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 420.50 | 411.00 | 430.00 | 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
TIDMIIT
RNS Number : 7756L
Independent Investment Trust PLC
15 January 2021
RNS Announcement: Preliminary Results ------------------------------------- The Independent Investment Trust PLC ------------------------------------
The following is the unaudited preliminary statement of annual results for the year to 30 November 2020 which was approved by the board on 14 January 2021.
Chairman's Statement --------------------
Over the year to 30 November 2020, our company produced a net asset value (NAV) total return of -2.2%. Over the same period, theoretical investments in the FTSE All-Share Index and the FTSE World Index would have produced total returns of -10.3% and +11.3% respectively. The best that can be said of this outcome is that it is considerably better than seemed likely at the half way stage: over the second half of our year our net asset value staged a good recovery, and we outperformed both the FTSE World Index and, by a comfortable margin, the FTSE All-Share Index. This despite the heavy burden of high cash balances that resulted from our flawed decision to reduce equity exposure in the second half of March.
A marginal recovery in the rating of our shares saw the discount move down from 9.4% at 30 November 2019 to 7.7% at 30 November 2020, producing a share price total return of -0.2%.
Economic developments over the year have been without precedent in our experience. The need, generated by the Covid-19 pandemic, for severe restrictions on all forms of activity created massive disruption for all economies. The anticipation of this disruption created one of the shortest and most painful bear markets in history, and this in turn provoked programmes of extraordinary monetary and fiscal stimulus. These had the desired effect of restoring confidence in markets whilst at the same time raising big questions as to their long term consequences. Our efforts to react to these developments were not notably successful: we would have done much better just to have shut our eyes and hoped for the best. Fortunately, our companies - including those we sold out of in March - have generally done a good job in coping with trying conditions: while many have suffered lower profits, all have maintained strong liquidity profiles and are thus well placed to capitalize on a return to a more normal operating environment.
The only major sector of the portfolio to have changed materially in importance is housebuilding, where initial enthusiasm was comprehensively reversed on the arrival of Covid-19. The move towards a more defensive portfolio saw the re-emergence of tobacco and insurance as significant exposures. From March onwards we carried high levels of cash: at 30 November 2020 cash accounted for 19.2% of the net assets (13.6% at 30 November 2019). As at 13 January 2021 the cash content was 11.6% of net assets. Further comments on the portfolio can be found in the Managing Director's Report on pages 4 and 5 of the Annual Report and Financial Statements.
Despite the ups and downs of recent years, we can still point to a respectable longer term record: for the period from inception in October 2000 to 30 November 2020, we produced an NAV total return of 746%, equivalent to a rate of roughly 11.3% per annum, of which 2.7% per annum can be offset by RPI inflation. By comparison, the notional return available from the FTSE All-Share Index over the period amounted to 141%, or 4.5% per annum
Revenue earnings per share for the year were 6.09p (13.48p in 2019). This is a better result than we had expected at the time of the Interim Report. In order to keep to our traditional payment timetable (see comments below on the timing of the AGM), we have decided to replace this year's final dividend with a second interim of 5p, making a total dividend of 8p (8p regular and 5p special in 2019). It will be paid on 9 April with an ex-dividend date of 18 February. It is too early to make any predictions for the current year; in particular, we cannot rule out the possibility of a cut.
Our ongoing charges ratio rose from 0.24% to 0.27%. This increase was almost entirely due to a lower daily average for the value of our assets (the increase in our expenses was well under 1/2 %). This figure remains very low by industry standards and would have been lower still if calculated on the value of assets at 30 November 2020.
We have always been keen to buy in our own shares when it has been clearly in the interests of continuing shareholders to do so. For a period in the spring, the volatility of markets was such that we were unable to convince ourselves that this criterion would be met. However, once markets had calmed down, we re-entered the market and over the course of the year we were able to buy in rather over 560,000 shares at an average discount of 11.7%.
The arrival of effective vaccines for Covid-19 has allowed markets to rally, in some cases to new peaks. The likelihood that we shall return to some form of normality in the year ahead may well continue to sustain them for some time, but eventually their unhealthy dependence on freakishly stimulative monetary conditions will have to be addressed. The UK market has, until recently, been a laggard in global terms and perhaps offers better value than some others, but it too is vulnerable to a return to monetary orthodoxy. We try to ensure that we are invested in companies strong enough to withstand the inevitable upheavals when this happens, and we believe the constituents of our current portfolio meet that criterion. We do not expect the departure of the UK from the European Union to have a material impact on our portfolio
We are planning to hold the AGM in the offices of Baillie Gifford at Calton Square at 4.30pm on 27 May 2021. This is a later date than would normally be the case, in order to give more time for the covid restrictions on attendance to clear. It will help our planning if we know how many shareholders are likely to attend, and I shall be grateful if you will mark the proxy form accordingly and return it to the Company's registrars. I look forward to seeing as many of you as possible there. The Board will, however, continue to monitor developments and any necessary changes will be posted on the Company's website www.independentinvestmenttrust.co.uk .
Douglas McDougall
14 January 2021
Past performance is not a guide to future performance.
For a definition of terms see Glossary of Terms and Alternative Performance Measures at the end of this announcement.
Total return information is sourced from Baillie Gifford /Refinitiv and relevant underlying index providers. See disclaimer at the end of this announcement.
Managing Director's Report --------------------------
Our performance over the year has been covered in the Chairman's Statement.
After a resilient first half performance, our technology holdings really came into their own during the second half of our year, converting a loss of GBP2.6m at 31 May into a profit of GBP14.2m at 30 November. The key contributors were Herald, Seeing Machines and Gamma Communications. At long last, Herald started to receive recognition for its outstanding record over the life of the Independent; new management at Seeing Machines has instilled the commercial disciplines that should finally allow the company to exploit its fine technology for the benefit of shareholders; and Gamma Communications has continued to bolster its position in cloud based telecommunications both here and in continental Europe. Both Blue Prism and FDM saw their operations hampered by Covid-19, but fared better than many had expected. Alfa Financial experienced the first signs of a long awaited upturn in its markets, but Zoo Digital, the only holding not to appreciate over the year, has still to make the breakthrough in its market place that we had hoped for. Overall, a position worth GBP64.9m at 30 November 2019 had grown in value to GBP69.8m by 30 November 2020 after net sales of GBP9.3m.
Our holdings in the travel and leisure sector had a value of GBP60.6m at 30 November 2019; by 30 November 2020, this had fallen to GBP47.6m after net sales of GBP29m. This strong performance split into an outstanding showing from our three computer games companies (the third, Codemasters, was sold after it was bid for) and a dismal showing from our (now much depleted) traditional holdings. The computer games companies were big beneficiaries of the restrictions on movement imposed round the world in response to Covid-19, just as the traditional leisure companies were severely hit by the same restrictions. In the latter part of our year, On the Beach and Loungers staged strong recoveries as hopes rose for a return to some form of normality following the announcement of successful vaccine trials. In the case of Loungers, trading in the summer and early autumn was also well ahead of general expectations.
Our dealings in housebuilders in the year under review were badly wrong-footed by the appearance of Covid-19. Early purchases in anticipation of a prolonged period of favourable trading conditions were looking good up until late February. The sector then suffered a sudden and dramatic change in investor sentiment as the prospect of lockdown threatened both the supply of housing and the demand for it. We were slow to recognize this, but felt that the scale of our position posed an unacceptable risk in the face of a possibly prolonged period of extremely difficult operating conditions. We therefore made substantial sales at what turned out to be distressed prices. This reflects one of the problems of investing with conviction: when the basis of one's conviction is seriously undermined in short order one is left with little choice but to prioritize risk over value. The net result was that we ended up buying high and selling low - a textbook example of how not to ply our trade, about which we feel suitably sheepish. On a happier note, the industry adapted quickly to the constraints imposed by the virus and enjoyed unexpectedly buoyant demand over the summer and early
autumn. The most recent government restrictions have been unhelpful (but much less damaging than the initial lockdown), but our confidence in the long term outlook for the industry has been strengthened by the experiences of the last twelve months. After net sales of GBP3.8m, our housing stake fell in value from GBP53.6m at 30 November 2019 to GBP28.6m at 30 November 2020.
A wish to reduce the sensitivity of our portfolio to fluctuating economic conditions, together with considerations of value, led to tobacco reappearing in the portfolio after an absence of some years and to Direct Line Group joining our longstanding holding in the Polar Capital Insurance Fund. Our tobacco companies have performed well so far, but Direct Line was held back by regulatory issues. During the course of the year we eliminated our exposure to the oil and gas sector, which also had the effect of reducing the portfolio's economic sensitivity.
Our two healthcare holdings saw divergent share price performances. Medica suffered from a big drop in routine scans following the outbreak of Covid-19, while Oxford Biomedica benefited both from a greater range of collaborations with other biotechnology companies and from its involvement in the manufacture of the Astra Zeneca covid vaccine, although the latter will contribute more in terms of prestige than of profit.
New holdings were taken in Telecom Plus, a company which should benefit from more rational pricing in the household energy market, and Derwent London, a high quality West End property company whose shares looked cheap following concerns about the impact of working from home on office property prices.
Elsewhere in the portfolio, we were hurt by poorly timed sales of Ashtead and Fever-Tree, although we retained a holding in the latter. We sold out of the retailers Joules and The Works, fortunately before covid struck but at prices that were disappointing in relation to our book cost. Small holdings in NAHL and Eddie Stobart were also sold, realizing big losses. Finally, our old favourite, Midwich, had a difficult year owing to covid disruptions to its business but we remain hopeful that it can achieve a full recovery on a return to normal trading conditions.
Max Ward
14 January 2021
Past performance is not a guide to future performance.
List of Investments as at 30 November 2020 (unaudited)
Hot Features
Premium
2019 Gains/ 2020
Value Net transactions (losses) Value
Sector Name GBP'000 GBP'000 GBP'000 GBP'000 %
---------------------- ------------------------ --------- ----------------- ---------- --------- -------
Housing Bellway 6,678 7,592 (2,950) 11,320 3.8
Crest Nicholson 15,376 (10,620) (4,756) - -
Persimmon 5,116 1,623 167 6,906 2.3
Redrow 26,440 (6,220) (9,840) 10,380 3.5
Taylor Woodrow - 3,795 (3,795) - -
53,610 (3,830) (21,174) 28,606 9.6
--------- ----------------- ---------- --------- -------
Industrials Ashtead Group 23,490 (14,256) (9,234) - -
Retailing Joules Group 3,450 (2,629) (821) - -
Motorpoint 9,984 (4,791) 1,007 6,200 2.1
The Works.Co.Uk 519 (752) 233 - -
13,953 (8,172) 419 6,200 2.1
--------- ----------------- ---------- --------- -------
Consumer Services NAHL Group 3,000 (1,250) (1,750) - -
Telecom Plus - 8,150 430 8,580 2.9
3,000 6,900 (1,320) 8,580 2.9
Travel and Codemasters Group
Leisure Holdings 9,118 (17,059) 7,941 - -
Frontier Developments 7,917 (5,983) 7,224 9,158 3.1
Hollywood Bowl Group 7,140 (2,994) (4,146) - -
Loungers 3,120 162 455 3,737 1.3
On the Beach Group 17,872 (1,558) (4,734) 11,580 3.9
Team 17 Group 10,050 - 13,050 23,100 7.8
The Gym Group 5,380 (1,588) (3,792) - -
--------- ----------------- ---------- --------- -------
60,597 (29,020) 15,998 47,575 16.1
--------- ----------------- ---------- --------- -------
Business Services Eddie Stobart Logistics 70 (473) 403 - -
Midwich 14,750 1,250 (3,900) 12,100 4.1
14,820 777 (3,497) 12,100 4.1
--------- ----------------- ---------- --------- -------
Tobacco Imperial Brands - 8,880 647 9,527 3.2
British American Tobacco - 10,387 169 10,556 3.6
- 19,267 816 20,083 6.8
Technology
and Alfa Financial Software 2,635 - 620 3,255 1.1
Telecommunications Blue Prism 12,419 (6,611) 1,327 7,135 2.4
FDM Group 14,565 - 795 15,360 5.2
Gamma Communications 6,250 1,993 2,992 11,235 3.8
Herald Investment Trust 21,060 (3,671) 7,311 24,700 8.3
Seeing Machines 6,343 (1,022) 1,463 6,784 2.3
Zoo Digital Group 1,620 - (320) 1,300 0.4
64,892 (9,311) 14,188 69,769 23.5
--------- ----------------- ---------- --------- -------
Beverages Fever-Tree Drinks 17,504 (6,161) (2,103) 9,240 3.1
--------- ----------------- ---------- --------- -------
Direct Line Insurance
Insurance Group - 13,815 970 14,785 5.0
--------- ----------------- ---------- --------- -------
Property Derwent London - 6,018 62 6,080 2.1
--------- ----------------- ---------- --------- -------
Healthcare Medica Group 5,640 - (720) 4,920 1.7
Oxford Biomedica 3,528 1,017 1,482 6,027 2.0
--------- ----------------- ---------- --------- -------
9,168 1,017 762 10,947 3.7
--------- ----------------- ---------- --------- -------
Polar Capital Global
Insurance Fund -
Financials Ireland 5,766 - (441) 5,325 1.8
--------- ----------------- ---------- --------- -------
Energy/Oilfield
Services Concho Resources - USA 2,807 (1,108) (1,699) - -
Royal Dutch Shell B - 3,926 (3,926) - -
RPC - USA 595 (403) (192) - -
3,402 2,415 (5,817) - -
Total Investments 270,202 (20,541) (10,371) 239,290 80.8
Net Liquid
Assets 42,667 14,303 - 56,970 19.2
------------------------------------------------ --------- ----------------- ---------- --------- -------
Shareholders'
Funds 312,869 (6,238) (10,371) 296,260 100.0
------------------------------------------------ --------- ----------------- ---------- --------- -------
All holdings are in equities domiciled in the UK unless otherwise stated.
Income statement
----------------
For the year ended For the year ended
30 November 2020 (unaudited) 30 November 2019 (audited)
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
(Losses)/gains on investments - (10,371) (10,371) - 17,338 17,338
Currency gains/(losses) - 22 22 - (4) (4)
Income (note 2) 4,070 - 4,070 8,178 - 8,178
Administrative expenses (743) - (743) (740) - (740)
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Net return on ordinary activities before taxation 3,327 (10,349) (7,022) 7,438 17,334 24,772
Tax on ordinary activities (5) - (5) (7) - (7)
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Net return on ordinary activities after taxation 3,322 (10,349) (7,027) 7,431 17,334 24,765
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Net return per ordinary share (note 3) 6.09p (18.98p) (12.89p) 13.48p 31.45p 44.93p
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Note:
Dividends per share paid and payable in respect
of the year (note 4) 8.00p 13.00p
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
The total column of this statement is the profit and loss account of the Company. The supplementary revenue and capital columns are prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in this statement derive from continuing operations.
A Statement of Comprehensive Income is not required as the Company does not have any other comprehensive income and the net return on ordinary activities after taxation is both the profit and comprehensive income for the year.
Balance sheet
-------------
At 30 November 2020 (unaudited) At 30 November 2019 (audited)
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------------- ---------------- --------------- --------------- --------------
Fixed assets
Investments held at fair value through profit or
loss 239,290 270,202
Current assets
Debtors 921 266
Cash and cash equivalents 56,237 43,446
-------------------------------------------------- ---------------- --------------- --------------- --------------
57,158 43,712
-------------------------------------------------- ---------------- --------------- --------------- --------------
Creditors
Amounts falling due within one year (188) (1,045)
-------------------------------------------------- ---------------- --------------- --------------- --------------
Net current assets 56,970 42,667
-------------------------------------------------- ---------------- --------------- --------------- --------------
Total net assets 296,260 312,869
-------------------------------------------------- ---------------- --------------- --------------- --------------
Capital and reserves
Share capital 13,539 13,679
Share premium account 15,242 15,242
Special distributable reserve 9,985 12,465
Capital redemption reserve 2,993 2,853
Capital reserve 248,422 258,771
Revenue reserve 6,079 9,859
-------------------------------------------------- ---------------- --------------- --------------- --------------
Shareholders' funds 296,260 312,869
-------------------------------------------------- ---------------- --------------- --------------- --------------
Net asset value per ordinary share (note 5) 547.1p 571.8p
-------------------------------------------------- ---------------- --------------- --------------- --------------
Statement of changes in equity
------------------------------
For the year ended 30 November 2020 (unaudited)
Special Capital
Share premium distributable redemption Capital Revenue Shareholders'
Share capital account reserve reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- -------------- ------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 1
December 2019 13,679 15,242 12,465 2,853 258,771 9,859 312,869
Net return on
ordinary
activities
after
taxation - - - - (10,349) 3,322 (7,027)
Shares bought
back for
cancellation
(note 5) (140) - (2,480) 140 - - (2,480)
Dividends paid
during the
year
(note 4) - - - - - (7,102) (7,102)
-------------- -------------- ------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 30
November 2020 13,539 15,242 9,985 2,993 248,422 6,079 296,260
-------------- -------------- ------------- ------------- ------------- --------- -------------- --------------
For the year ended 30 November 2019 (audited)
Special Capital
Share premium distributable redemption Capital Revenue Shareholders'
Share capital account reserve reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 1
December 2018 13,842 15,242 15,861 2,690 241,437 8,501 297,573
Net return on
ordinary
activities
after
taxation - - - - 17,334 7,431 24,765
Shares bought
back for
cancellation
(note 5) (163) - (3,396) 163 - - (3,396)
Dividends paid
during the
year
(note 4) - - - - - (6,073) (6,073)
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 30
November 2019 13,679 15,242 12,465 2,853 258,771 9,859 312,869
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
* The Capital Reserve balance at 30 November 2020 included an investment holding gain on fixed asset investments of GBP95,283,000 (2019 - gain of GBP96,327,000).
Notes to Financial Statements (unaudited)
------------------------------------------
1. The unaudited financial statements for the year to 30 November 2020 have been prepared in
accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic
of Ireland' on the basis of the accounting policies set out in the Annual Report and Financial
Statements are unchanged from the prior year and have been applied consistently. All of the
Company's operations are of a continuing nature and the financial statements are expected
to be prepared on a going concern basis. The Company has elected not to present a Statement
of Cash Flows for the current year as a Statement of Changes in Equity has been provided and
substantially all of the Company's investments are highly liquid and are carried at market
value.
---------------------------------------------------------------------------------------------------------
2. Income Year to Year to
30 November 2020 30 November 2019
GBP'000 GBP'000
-------------------------------------------- ----------------- ------------------- -------------------
Income from investments
UK dividends 3,880 7,837
Overseas dividends 122 132
----------------- ------------------- -------------------
4,002 7,969
----------------- ------------------- -------------------
Other income
Deposit interest 51 190
Other income 17 19
------------------- -------------------
68 209
------------------- -------------------
Total income 4,070 8,178
------------------- -------------------
Total income comprises:
Dividends from financial assets designated
through profit or loss 4,002 7,969
Deposit interest 51 190
Other income 17 19
------------------- -------------------
4,070 8,178
------------------- -------------------
3. Net return per ordinary Year to Year to
share 30 November 2020 30 November 2019
Revenue Capital Total Revenue Capital Total
------------------------- ----------------- ----------------- -------- --------- -------- ---------
Net return on ordinary
activities after taxation
(GBP'000) 3,322 (10,349) (7,027) 7,431 17,334 24,765
Weighted average number of
ordinary shares in issue
during the year 54,527,195 55,114,893
Net return per ordinary share 6.09p (18.98p) (12.89p) 13.48p 31.45p 44.93p
----------------------------- ----------------- ----------------- -------- --------- -------- ---------
Returns per ordinary share are based on the return for the financial year and on the weighted
average number of ordinary shares in issue during the year as shown above.
There are no dilutive or potentially dilutive shares in issue.
-------------------------------------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (Ctd)
------------------------------------------------
4. Ordinary dividends Year to Year to
30 November 2020 30 November 2019
Pence GBP'000 Pence GBP'000
---------------------------------------------------------------- -------- --------- -------- ---------
Amounts recognized as distributions in the year
Previous year's final dividend paid 6 April 2020 5.00 2,734 5.00 2,766
Previous year's special dividend paid 6 April 2020 5.00 2,734 3.00 1,660
Interim dividend paid 21 August 2020 3.00 1,634 3.00 1,647
-------------------------------------------------------------------- -------- --------- -------- ---------
13.00 7,102 11.00 6,073
-------------------------------------------------------------------- -------- --------- -------- ---------
Set out below are the total dividends paid and proposed in respect of the financial year,
which is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010
are considered. The revenue available for distribution by way of dividend for the year is
GBP3,322,000 (2019 - GBP7,431,000).
Year to Year to
30 November 2020 30 November 2019
Pence GBP'000 Pence GBP'000
---------------------------------------------------------------- -------- --------- -------- ---------
Amounts paid and payable in respect of the year
Interim dividend paid 21 August 2020 3.00 1,634 3.00 1,647
Second interim dividend payable 9 April 2021 5.00 2,708 5.00 2,736
Special dividend payable - - 5.00 2,736
-------------------------------------------------------------------- -------- --------- -------- ---------
8.00 4,342 13.00 7,119
-------------------------------------------------------------------- -------- --------- -------- ---------
The second interim dividend will be paid on 9 April 2021 to all shareholders on the register
at the close of business on 19 February 2021. The ex-dividend date is 18 February 2021.
--------------------------------------------------------------------------------------------------------------
5. Net asset value per ordinary At 30 November 2020 At 30 November 2020 At 30 November 2019 At 30 November 2019
share Pence GBP'000 Pence GBP'000
----------------------------- ------------------- ------------------- ------------------- -------------------
Net asset value attributable to
ordinary shares 547.1 296,260 571.8 312,869
The net asset value per share is based on net assets as shown above and on 54,155,657 shares
(2019 - 54,717,378), being the number of shares in issue at the year end. There are no dilutive
or potentially dilutive shares in issue.
During the year the Company bought back and cancelled 561,721 (2019 - 652,622) ordinary shares
with a nominal value of GBP140,000 (2019 - GBP163,000) at a cost of GBP2,480,000 (2019 - GBP3,396,000).
No shares were allotted during the year. At 30 November 2020 the Company had authority remaining
to buy back a further 7,640,413 ordinary shares and to allot new shares up to an aggregate
nominal value amount of GBP4,559,325.
---------------------------------------------------------------------------------------------------------------------
6. Transaction costs incurred on the purchase and sale of the investments are added to the purchase
cost or deducted from the sale proceeds, as appropriate. During the year, transaction costs
on purchases amounted to GBP569,000 (2019 - GBP120,000) and transaction costs on sales amounted
to GBP224,000 (2019 - GBP96,000).
Notes to Financial Statements (unaudited) (Ctd)
7. The financial information set out above does not constitute the Company's statutory accounts
for the year ended 30 November 2020. The financial information for 2020 is derived from the
financial statements for 2019 which have been delivered to the Registrar of Companies. The
auditors have reported on the 2019 accounts; their report was unqualified, did not include
a reference to any matters to which the auditors drew attention by way of emphasis without
qualifying the report and did not contain a statement under sections 498 (2) or 498(3) of
the Companies Act 2006. The statutory accounts for 2020 will be finalised on the basis of
the financial information presented in this preliminary announcement and will be delivered
to the Registrar of Companies following the Company's Annual General Meeting. The Auditors
have advised the Company that they do not expect their report on the 2020 statutory accounts
to include any modification or emphasis of matter statements.
8. The Report and Accounts will be available on the Company's website www.independentinvestmenttrust.co.uk
on or around 12 February 2021.
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
Glossary of Terms and Alternative Performance Measures (APM)
Total Assets
The total value of all assets held less all liabilities (other than liabilities in the form of borrowings).
Net Asset Value
Net Asset Value (NAV) is the value of all assets held less all liabilities (including liabilities in the form of borrowings). The NAV per share is calculated by dividing this amount by the number of ordinary shares in issue.
(Discount)/Premium (APM)
As stockmarkets and share prices vary, an investment trust's share price is rarely the same as its NAV. When the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount is calculated by subtracting the share price from the NAV per share and is usually expressed as a percentage of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.
As at 30 November 2020 2019 -------------------------- ------------- ------ ------ Net asset value per share (a) 547.1p 571.8p Share price (b) 505.0p 518.0p (Discount) ((b=(a))/(a) (7.7%) (9.4%) -------------------------- ------------- ------ ------
Net Liquid Assets
Net liquid assets comprise current assets less current liabilities (excluding borrowings).
Total Return (APM)
The total return is the return to shareholders after reinvesting the net dividend on the date that the share price goes ex-dividend.
Glossary of Terms and Alternative Performance Measures (APM) (Ctd)
Net Asset Value
2020 2019
--------------------------------------------------------------------------- ---- ------- -------
Opening NAV per share at 1 December 2019 (2018) (a) 571.79p 537.43p
Closing NAV per share at 30 November (b) 547.05p 571.79p
Total dividend adjustment factor* (c) 1.02242 1.02019
Adjusted closing NAV per share (d = b x c) (d) 559.31p 583.33p
Total return on net asset value (d - a) ÷ a expressed as a percentage (2.2%) 8.5%
--------------------------------------------------------------------------------- ------- -------
* The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into shares of the Company at the cum income NAV at the ex-dividend date.
Share Price
2020 2019
--------------------------------------------------------------------------- ---- ------- -------
Opening share price at 1 December 2019 (2018) (a) 518.0p 531.00p
Closing share price at 30 November (b) 505.0p 518.00p
Total dividend adjustment factor* (c) 1.02409 1.02046
Adjusted closing share price (d = b x c) (d) 517.17p 528.60p
Total return on net share price (d - a) ÷ a expressed as a percentage (0.2%) (0.5%)
--------------------------------------------------------------------------------- ------- -------
* The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into shares of the Company at the last traded price quoted at the ex-dividend date.
Ongoing Charges (APM)
The total administrative expenses incurred by the Company as a percentage of the average shareholders' funds, calculated on a daily basis.
2020 2019
GBP'000 GBP'000
--------------------------------------------------------- -------- --------
Total administrative expenses (a) 743 740
Average net asset value (b) 277,403 303,015
Ongoing charges (a) ÷ (b) expressed as a percentage 0.27% 0.24%
--------------------------------------------------------- -------- --------
Available cash
Cash and cash equivalents as adjusted for investment and share buy-back transactions awaiting settlement.
Gearing
At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders' assets is called 'gearing'. If the Company's assets grow, the shareholders' assets grow proportionately more because the debt remains the same. But if the value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets. The level of gearing can be adjusted through the use of derivatives which affect the sensitivity of the value of the portfolio to changes in the level of markets.
Net gearing/(cash) (APM) is borrowings less available cash (as defined above) and fixed interest securities (ex convertibles) divided by shareholders' funds.
Compound Annual Return
The compound annual return converts the return over a period of longer than one year to a constant annual rate of return applied to the compounded value at the start of each year.
Third Party Data Provider Disclaimer
No third party data provider ('Provider') makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. No Provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the index data included in this document, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom. No Provider has any obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate. Without limiting the foregoing, no Provider shall have any liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgements, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein.
FTSE Index data
FTSE International Limited ('FTSE') (c) FTSE 2020. 'FTSE(R)' is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and/or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE's express written consent. FTSE does not promote, sponsor or endorse the content of this communication.
Legal Entity Identifier: 213800IYHGJTZJ3MO642
Regulated Information Classification: Additional regulated information required to be disclosed under applicable laws
- ends -
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
FR DKQBBFBKDKDD
(END) Dow Jones Newswires
January 15, 2021 02:00 ET (07:00 GMT)
1 Year Independent Investment Chart |
1 Month Independent Investment Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
