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Share Name Share Symbol Market Type Share ISIN Share Description
Aberdeen New Thai Investment Trust Plc LSE:ANW London Ordinary Share GB0000059971 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -4.00 -0.98% 404.00 402.00 414.00 404.00 404.00 404.00 8,227 13:02:02
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 4.4 3.7 19.8 20.4 67

Aberdeen New Thai Inv Trust PLC Half-year Report

16/10/2020 3:20pm

UK Regulatory (RNS & others)


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TIDMANW

RNS Number : 3786C

Aberdeen New Thai Inv Trust PLC

16 October 2020

ABERDEEN NEW THAI INVESTMENT TRUST PLC

Legal Entity Identifier (LEI): 213800LUTHTZ8LS5UK85

16 October 2020

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHSED 31 AUGUST 2020

The following is the unaudited Interim Board Report for the six months ended 31 August 2020.

 
 PERFORMANCE (TOTAL RETURN, WITH DIVIDS REINVESTED) 
 
 Net asset value              Share price per                   Stock Exchange of 
  per Ordinary                 Ordinary share{A}                 Thailand ("SET") 
  share{A}                                                       Index (Sterling 
                                                                 adjusted) 
 
 Six months ended             Six months ended                  Six months ended 
  31 August 2020      -5.7%    31 August 2020           -1.0%    31 August 2020           -3.1% 
 
 Year ended 28                Year ended 28 February            Year ended 28 February 
  February 2020      -16.6%    2020                    -18.7%    2020                    -12.8% 
 
 {A} Considered to be an Alternative Performance Measure. 
 Source: Standard Life Aberdeen Group, Morningstar & Lipper 
 
 

FINANCIAL HIGHLIGHTS

 
                                                      31 August   28 February   % change 
                                                           2020          2020 
 
 Total assets (GBP'000)                                  88,593        95,787       -7.5 
 Equity shareholders' funds (net assets) (GBP'000)       78,593        85,787       -8.4 
 Ordinary share price (mid-market)                      419.00p       434.00p       -3.5 
 Net asset value per Ordinary share{A}                  480.39p       520.22p       -7.7 
 Net asset value per Ordinary share total 
  return{A,B}                                             -5.7%        -16.6% 
 Discount to net asset value per Ordinary 
  share{A,B}                                              12.8%         16.6% 
 GBP/THB exchange rate                                   41.671        40.305       +3.4 
 Stock Exchange of Thailand ("SET") Index{C}              31.45         33.26       -5.4 
 Interim dividend per Ordinary share{D}                   8.00p         8.00p 
 Net gearing{B}                                           11.6%         10.9% 
 Ongoing charges ratio{B}                                 1.26%         1.24% 
 
 {A} Calculated including undistributed net revenue for the period. 
 {B} Considered to be an Alternative Performance Measure. 
 {C} Sterling adjusted, capital return basis. 
 {D} Interim dividend relating to the first six months of the financial 
  year. 
 
 A summary of the Alternative Performance Measures may be found below. 
 

INTERIM BOARD REPORT - CHAIRMAN'S STATEMENT

Overview

Earlier this year, the rapid spread of the highly infectious and deadly coronavirus forced governments worldwide to impose stringent lockdowns to stem the contagion. This caused global markets to sell off aggressively earlier in 2020; Thailand was no exception.

In the 28 February 2020 Annual Report (the "Annual Report"), I said that your Board and Manager believed we faced several months of uncertainty and volatility across financial markets. This has indeed been the case over the first half of our financial year (the "Period") as investor optimism rebounded in April and May but markets, since then, have traded in a narrow range. Thailand's management of COVID-19 has been largely commendable. In March in reaction to the outbreak, the Thai government took swift and decisive measures; it issued a travel ban for non-residents into the country and shut restaurants, malls and retail outlets. These lockdowns proved effective at keeping infections low, and allowed for the gradual reopening of the economy. This, in turn, helped domestic equities recover steadily from mid April. Investors also welcomed the government's various fiscal stimuli, totalling over 1.9 trillion baht, in cash handouts, soft loans to small and medium enterprises and support for capital markets.

The tough but effective measures to curb COVID-19 hit all sectors of the economy hard, especially tourism, which collapsed in the first quarter. The manufacturing sector also saw severe declines as export demand wilted. This clouded the earnings outlook and hindered companies' ability to borrow, which in turn hurt the banking sector. Furthermore, the Bank of Thailand, in tandem with other major central banks, lowered its benchmark rate to 0.5% in response to the economic fallout from the pandemic. This had an adverse impact on the Company's financial holdings that pay high dividends.

Similarly, oil and energy firms that have traditionally paid higher dividends were also affected. The sector suffered as demand for crude oil slumped both from abroad and at home. A price war subsequently erupted among major oil producing nations further exacerbating the fall in crude prices. Although the OPEC+ group reached an agreement in May, global demand was so severely weakened that energy companies were compelled to reduce operations temporarily to avoid adding to burgeoning stocks.

On the political front, it is relevant to note that it was a relatively new government that had to face these unprecedented challenges. After inconclusive elections in March 2019, key parties had struggled to form a coalition government until the summer of 2019. While some demands have gained traction there was a toll, with key cabinet ministers resigning. In the ensuing cabinet reshuffle, the prime minister looked to the private sector to recruit key positions and was met with mixed success. Ongoing student-led demonstrations have resulted in the recent declaration of a state of emergency. These upheavals have dented the Thai stock market's nascent recovery, with investors unsure as to whether the government can effectively execute its pledge to lift the economy.

Performance

Thai equities fell in the Period under review. The Stock Exchange of Thailand Index ("SET Index") declined by 3.1% on a sterling adjusted total return basis. By comparison, your Company's net asset value ("NAV") fell by 5.7%, while the Ordinary share price retreated by 1.0% (both figures in total return terms), resulting in the discount narrowing from 16.6% to 12.8%.

Portfolio

Over the Period, your Company's performance lagged the SET Index. As mentioned earlier, exposure to the financial sector, energy, and resources stocks were significant detractors to performance.

Among the financial holdings, AEON Thana Sinsap and Tisco Financial Group were constrained by higher bad debt provisions and low interest rates. In June, the central bank instructed lenders to suspend both share buybacks and interim dividend payments in a precautionary attempt to conserve capital ahead of a protracted downturn, exacerbating the sell-off in banking stocks. Despite the near term challenges, these institutions are well capitalised and better positioned than their peers to weather the challenges ahead. For example, AEON Thana Sinsap posted in May healthier than expected quarterly results, helped by its resilient income and prudent cost controls. Your Manager has taken advantage of weaker valuations to add to these holdings. Conversely, other banks deemed less resilient were sold, including Siam Commercial Bank and Kiatnakin Bank.

In the energy sector, weaker oil prices put pressure on oil exploration and distribution company PTTEP, while disappointing earnings due to low demand, together with one off maintenance costs, weighed on electrical power company Electricity Generating. Seasonal flooding had also affected some of its operations, resulting in further losses. However, your Manager expects some improvement in earnings in the months ahead. The fall in energy consumption also affected power producer Banpu Power. Your Manager subsequently exited the stock because of its worsening outlook and unexciting prospects for its Chinese power plants.

Meanwhile, certain companies, notably pharmaceuticals firms, have been strong performers during the pandemic. Mega Lifesciences was one such example, with healthy domestic demand boosting its earnings. The outlook for the sector remains upbeat as research for a COVID-19 vaccine gains momentum. In the tech sector, semiconductor holdings saw robust growth, thanks to working-from-home policies that underpinned the demand for servers and data centres. Electronic components manufacturer Hana Microelectronics rose alongside its peers.

Elsewhere, soft drink producer Haad Thip was another contributor, helped by resilient domestic sales, despite the absence of tourists. The company, which operates mainly in the south where there is a high concentration of beach and holiday resorts, opened a new factory to increase its bottling capacity and improve efficiency.

Lastly, the property and construction sector saw mixed fortunes. On the one hand, demand fell for new construction projects due to heightened uncertainty. Property developers struggled, including condominium builder LPN Development, which your Manager sold due to the difficult outlook. On the other hand, there was an uptick in home and industrial renovations, a trend that benefitted both tile maker Dynasty Ceramic and paint and surface-coatings producer TOA Paint. Their resilience allowed your Manager to take profits that were reinvested in higher conviction names.

Strategic Portfolio Changes

Your Manager took advantage of weaker valuations to initiate a position in Airports of Thailand ("AOT"), the country's leading airport operator that had been on your Manager's radar for some time. The company is now deemed investable due to improved governance and a reduction in its debt. Beyond the short-term setback to air travel and tourism, your Manager believes that AOT, with its world-class facilities, near monopoly position and attractive locations throughout Thailand, is well placed to benefit when the sector recovers. Another introduction was Intouch Holdings, an investment company that holds 40% of Advanced Info Services, Thailand's largest mobile phone operator which generates robust profits and provides a high dividend yield and which the Company already holds. The weaker market valuation allowed your Manager to gain increased exposure to the stock. Lastly, your Manager initiated a holding in CP ALL, the operator of 7-Eleven convenience stores in Thailand, which looks attractive due to its defensive characteristics amid the weaker near term economic outlook.

The deteriorating prospects for the auto industry prompted your Manager to divest from holdings in Interhides, a tannery specialising in leather products for the automotive and footwear industries, as well as Krungthai Car Rent. Separately, Insurer ThaiRe Life was also sold in favour of more compelling opportunities.

Earnings and Interim Dividend

The Company's revenue return for the six months ended 31 August 2020 was 13.2p per share (2019 - 15.8p).

The Board is declaring an interim dividend of 8.00p per share (2019 - 8.00p) to be paid on 26 November 2020 to shareholders on the register as at 30 October 2020. The ex-dividend date will be 29 October 2020.

Share Buybacks

The Board closely monitors the share price discount to NAV and will continue to pursue a policy of selective buybacks of shares where to do so would be in the best interests of shareholders.

During the six months ended 31 August 2020 the Company bought back and cancelled 130,340 Ordinary shares (2019 - 31,971). As at 31 August 2020, the Company's issued share capital consisted of 16,360,223 Ordinary shares with voting rights (2019 - 16,550,930). Between 1 September 2020 and the date of approval of this Report, the Company bought back for cancellation a further 13,395 Ordinary shares resulting in 16,346,828 shares with voting rights in issue.

Duration

The Company does not have a fixed life. However, under the Articles of Association, if in the 12 weeks preceding the Company's financial year end (28 February) the Ordinary shares have been trading, on average, at a discount in excess of 15% to the underlying NAV (calculated including undistributed net revenue) over the same period, notice will be given of a special resolution to be proposed at the following Annual General Meeting that the Company be put into voluntary liquidation. Furthermore, and as I set out within my Statement in the Annual Report, shareholders should also note that the Board is committed to providing shareholders with a strong investment proposition with the objective of delivering relative outperformance of the fund's benchmark over the long term. To that end, the Board keeps investment performance under constant review. However, if performance over the three years to 28 February 2023 has not shown outperformance of the benchmark, the Board will undertake a full review of the Company's investment management arrangements which may include, but is not limited to, an option for shareholders to redeem shares for cash.

Shareholder Communications

In the Annual Report I asked shareholders to follow the UK government advice at the time and to not attend our AGM. I also stated that we would try to hold an event for shareholders later in the year. Of course the on-going pandemic has not made this possible but we have sought to enhance our communications via our website and virtual channels.

Outlook

Taking the cue from your Manager, I too am cautious about the near-term outlook for Thai equities. While the government has done well to curb the spread of COVID-19 thus far, the disruption to economic activity will take some time to overcome. The forecast is for the economy to contract more than 8% in 2020 which would be the largest annual decline since the Asian Financial Crisis in 1997. The recovery of the country's tourism and export sectors is contingent on the healthy resumption of global trade and the easing of international travel restrictions. This, in turn, hinges on the creation of an effective vaccine that can be made available widely. Despite encouraging signs on the vaccine front, the development cycle is highly uncertain and complex. Meanwhile, the risk of new outbreaks still looms. Moreover, the uncertain geopolitical backdrop gives cause for concern, especially as US-China relations heat up in the lead up to the US presidential election in November. Domestically, the increasing momentum for constitutional amendments is also something to monitor in terms of the ongoing state of emergency which has been declared.

That said, I am encouraged by improving trends in local consumption, and the government's efforts to boost domestic tourism, such as the 22.4 billion baht targeted package to stimulate the industry. The government's swift response to the crisis, injecting liquidity into financial markets and distributing cash benefits, has been possible as a result of healthy foreign exchange reserves, low public debt and modest inflation that should allow the central bank room to manoeuvre. While the current cabinet reshuffle has caused some concern, I think the move to co-opt private sector stalwarts into government is positive as it paves the way for greater cooperation between the two.

At the corporate level, I believe that Thai listed companies remain resilient and able to weather the current storm. As a long term investor, your Manager's focus continues to be on quality companies with solid fundamentals, such as robust balance sheets, good cash flow and prudent management. Ultimately, I remain confident that the Company's high quality underlying holdings will stand your Company in good stead, well beyond the current global health crisis.

Nicholas Smith,

Chairman

16 October 2020

INTERIM BOARD REPORT - OTHER MATTERS

Principal Risks and Uncertainties

The Board regularly reviews the principal risks and uncertainties associated with the Company and these may be categorised as follows:

   -     COVID-19 
   -     Discount volatility 
   -     Dividends 
   -     Foreign exchange risks 
   -     Financial and Gearing 
   -     Investment objective 
   -     Liquidity risk 
   -     Operational and Cyber 
   -     Performance risk 
   -     Political risk and exchange controls 
   -     Regulatory and Governance 

Further information may be found on pages 12 to 16 of the Annual Report for the year ended 28 February 2020. The Company's principal risks and uncertainties have not changed materially since the date of the Annual Report and are not expected to change materially for the remaining six months of the Company's financial year ended 28 February 2021.

During the period the Board continued to assess the ongoing implications for the Company of the spread of COVID-19, including the resilience of the reporting and control systems in place for both the Manager and other key service providers. The Board is also mindful of the ongoing negotiations regarding the end of the transition period on 31 December 2020 related to the UK's departure from the EU.

Going Concern

The Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the adoption of the going concern basis of accounting is appropriate. The Company's assets consist entirely of equity shares in companies listed on the Stock Exchange of Thailand which are, in most circumstances, realisable within a short timescale, including in light of volatile market conditions connected with COVID-19.

The Directors are also conscious of the principal risks and uncertainties disclosed on pages 12 to 16 and in Note 16 to the financial statements of the Annual Report for the year ended 28 February 2020.

The Board has set limits for borrowing and regularly reviews the level of any gearing, cash flow projections and compliance with banking covenants.

The Company has a GBP15m three-year multi-currency revolving credit facility (the "Facility") with Industrial and Commercial Bank of China Limited, London, of which GBP10.0m was drawn down as at 31 August 2020. In advance of expiry of the Facility in October 2021, the Company will enter into negotiations with its bankers. If acceptable terms are available from the existing bankers, or any alternative, the Company would expect to continue to access the Facility. However, should these terms not be forthcoming, any outstanding borrowing will be repaid through the proceeds of equity sales.

After making enquiries, including a review of forecasts detailing revenue and liabilities, the Directors have a reasonable expectation that the Company possesses adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

- the condensed set of Financial Statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);

- the Half Yearly Board Report includes a fair review of the information required by rule 4.2.7R of the Disclosure Guidance and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

- the Half Yearly Board Report includes a fair review of the information required by 4.2.8R of the Disclosure Guidance and Transparency Rules (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so).

The Half Yearly Financial Report for the six months ended 31 August 2020 comprises the Interim Board Report, including the Statement of Directors' Responsibilities, and a condensed set of Financial Statements.

For and on behalf of the Board

Nicholas Smith,

Chairman

16 October 2020

ESG INVESTMENT CASE STUDIES

Improving sustainability issues are critical to companies' future growth and long term success. Engagement allows us to discover specific and material issues individual companies face, such as their plans to reduce risk and how they future proof their businesses. Companies that innovate and adapt to changing consumer needs will be better placed for long-term growth than their rivals. Here we provide an update on Siam Cement Group, first profiled in this year's Annual Report, and Osotspa, a leading consumer products company. Both companies are demonstrating strong commitments to making their businesses more sustainable which was recognised and welcomed by the Directors during their site visits to Siam Cement Group and Osotspa in early 2020.

Siam Cement Group

Siam Cement Group ("SCG") is a leading business conglomerate in Thailand. It was established more than a century ago as a cement producer, but has gradually expanded into areas such as petrochemicals and packaging. Because these sectors have a high impact on the environment, we are committed to engaging with the company regularly, as part of the ESG assessment of our holdings. In the last six months, we have spoken with management twice, following up on its sustainability efforts and to find out how it is meeting the challenges related to COVID-19.

We are pleased to note that SCG has been rated "AA" by index provider MSCI, setting it apart as an ESG leader in the industry. The company has committed to challenging environmental targets and rigorous reporting standards. For instance, it aims to reduce water usage by 23% in five years and cut its greenhouse-gas (GHG) emissions by 28% before the end of the decade. It is already a third of the way towards reaching its goal after cutting GHG emissions by 10% this year. Going green has also benefited the company, with its "Green Choice" eco-friendly products accounting for 29% of 2019 sales.

We are impressed with SCG's commitment to innovation to keep pace with changing consumption patterns and its effective use of technology to develop more sustainable construction techniques. The company is a leader in research and innovation to improve the recyclability of its products and energy efficiency of its processes. For example, in 2018, it unveiled its "recycled plastic road", where re-used plastic was mixed with asphalt to create a road surface with a significantly lower carbon footprint than traditional asphalt. Another example is its use of agricultural waste to make energy pellets instead of using coal. Apart from the significant cost savings, this also supports its goal of sustainable development through the reduction of harmful airborne PM2.5 pollutants. Almost 40% of SCG's cement producing capacity is fuelled by these energy pellets.

The company aims to reduce the sale and production of single use plastics. However, hygiene concerns related to COVID-19 have driven higher demand for single use plastics over the short term. While record sales for these products have boosted profit margins in the second quarter, management is committed to increasing the production of more sustainable packaging by 2025, up from 35% currently.

Osotspa

Osotspa is a leading producer and distributor of consumer goods. The company was founded as a pharmacy a century ago but has evolved to meet changing consumer needs. Nowadays its core products include non-alcoholic beverages, personal and healthcare products and confectionery. It predominantly serves the home market through its extensive distribution network across Thailand but it has also established a global presence, especially with its flavoured and energy drinks, which are now sold in some 30 countries. Beyond Thailand, Osotspa has a firm foothold in neighbouring Cambodia, Laos and Myanmar where it is poised to benefit from the rapid growth in consumer spending. The company is well managed, with strong governance and is committed to ambitious environmental and sustainability goals. Its growth and expansion have been underpinned by sustainable revenue streams and financial prudence.

The company's success in the energy drink sector attests to its keen awareness of market trends, its ability to adapt quickly and its marketing capabilities. As an example of its adaptability, when the company recently saw its revenues from international beverage sales decline due to the impact of COVID-19, it nimbly latched on to the growing market opportunities in health and hygiene and launched more hand sanitiser products.

Osotspa has ten factories in Thailand and has invested in a fully integrated value chain for its beverage manufacturing business. This production process supports the company's environmental and sustainability goals as it helps to conserve energy and minimise wastage in the manufacturing process. For example, the company runs a plant that cleans and turns recycled broken glass into new glass. Over 70% of the company's products are bottled in recycled glass. Furthermore, Osotspa has a highly efficient waste water treatment system while its innovative method of reusing excess heat from its bottle making operations has resulted in significant energy savings. The company's long term target is to achieve zero landfill waste.

 
 INVESTMENT PORTFOLIO 
 As at 31 August 2020 
                                                                       Valuation   Total assets 
 Company                                Sector (Thai SET)                GBP'000              % 
 
 PTT Public Company                     Energy & Utilities                 6,461            7.3 
                                        Information & Communication 
 Advanced Info Service                   Technology                        5,433            6.1 
 Osotspa                                Food & Beverage                    3,761            4.3 
 Home Product Center                    Commerce                           3,747            4.2 
 CP All                                 Commerce                           3,710            4.2 
                                        Transportation & 
 Airports of Thailand                    Logistics                         3,572            4.0 
 Land & Houses {A}                      Property Development               3,368            3.8 
 Bangkok Dusit Medical Services         Health Care Services               3,342            3.8 
 Siam Cement                            Construction Materials             3,335            3.8 
 Central Pattana                        Property Development               3,272            3.7 
 Top ten investments                                                      40,001           45.2 
 
 Toa Paint                              Construction Materials             3,205            3.6 
 Tisco Financial Group                  Banking                            3,192            3.6 
 Bangkok Insurance                      Insurance                          3,159            3.5 
 Electricity Generating                 Energy & Utilities                 2,712            3.1 
 Bangkok Bank                           Banking                            2,538            2.9 
 Mega Lifesciences                      Commerce                           2,362            2.7 
 PTT Exploration & Production           Energy & Utilities                 2,284            2.6 
 Eastern Water Resources Development 
  & Management                          Energy & Utilities                 2,254            2.5 
 Aeon Thana Sinsap                      Finance & Securities               2,202            2.5 
 Thai Stanley Electric                  Automotive                         2,139            2.4 
 Top twenty investments                                                   66,048           74.6 
 
 Haad Thip                              Food & Beverage                    1,995            2.3 
 Kasikornbank                           Banking                            1,969            2.2 
 Minor International {B}                Food & Beverage                    1,900            2.2 
 Hana Microelectronics                  Electronic Components              1,795            2.0 
                                        Information & Communication 
 Intouch Holdings                        Technology                        1,701            1.9 
 Siam City Cement                       Construction Materials             1,686            1.9 
 Bumrungrad Hospital                    Health Care Services               1,531            1.7 
 Siam Global House                      Commerce                           1,443            1.6 
 Tesco Lotus Retail Growth Freehold 
  & Leasehold Property Fund (Local      Property Fund & 
  market shares)                         REITS                             1,380            1.6 
 Central Retail                         Commerce                           1,091            1.2 
 Top thirty investments                                                   82,539           93.2 
 
 Asset World                            Property Development               1,073            1.2 
 Muang Thai Insurance                   Insurance                            942            1.1 
 Dynasty Ceramic                        Construction Materials               933            1.0 
 Banpu Power                            Energy & Utilities                   783            0.9 
 Goodyear (Thailand)                    Automotive                           695            0.8 
 Sammakorn                              Property Development                 586            0.6 
 Total investments                                                        87,551           98.8 
 Net current assets{C}                                                     1,042            1.2 
 Total assets                                                             88,593          100.0 
 
 {A} Holding includes investment in both common stock and non-voting 
  depositary receipts. 
 {B} Holding includes investment in both common stock and warrants. 
 {C} Excludes bank loans of GBP10,000,000. 
 Note: Unless otherwise stated, foreign stock is held. 
 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

 
                                                      Six months ended 
                                                       31 August 2020 
                                                Revenue     Capital       Total 
                                      Notes     GBP'000     GBP'000     GBP'000 
 (Losses)/gains on investments                        -     (6,663)     (6,663) 
 Income                                 2         2,727           -       2,727 
 Management fee                                    (77)       (231)       (308) 
 Administrative expenses                          (206)           -       (206) 
 Currency losses                                      -        (59)        (59) 
                                              _________   _________   _________ 
 Net return before finance costs 
  and taxation                                    2,444     (6,953)     (4,509) 
 
 Finance costs                                     (16)        (49)        (65) 
                                              _________   _________   _________ 
 Net return before taxation                       2,428     (7,002)     (4,574) 
 
 Taxation                               3         (252)           -       (252) 
                                              _________   _________   _________ 
 Return after taxation                            2,176     (7,002)     (4,826) 
                                              _________   _________   _________ 
 Return per Ordinary share (pence)      4         13.23     (42.58)     (29.35) 
                                              _________   _________   _________ 
 
 The total column of the Condensed Statement of Comprehensive 
  Income represents the profit and loss account of the Company. 
 
   All revenue and capital items in the above statement are derived 
   from continuing operations. 
 
   The accompanying notes are an integral part of the financial 
   statements. 
 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

 
                                                      Six months ended 
                                                       31 August 2019 
                                                Revenue     Capital       Total 
                                      Notes     GBP'000     GBP'000     GBP'000 
 (Losses)/gains on investments                        -      13,186      13,186 
 Income                                 2         3,273           -       3,273 
 Management fee                                   (129)       (387)       (516) 
 Administrative expenses                          (219)           -       (219) 
 Currency losses                                      -        (19)        (19) 
                                              _________   _________   _________ 
 Net return before finance costs 
  and taxation                                    2,925      12,780      15,705 
 
 Finance costs                                     (15)        (45)        (60) 
                                              _________   _________   _________ 
 Net return before taxation                       2,910      12,735      15,645 
 
 Taxation                               3         (295)           -       (295) 
                                              _________   _________   _________ 
 Return after taxation                            2,615      12,735      15,350 
                                              _________   _________   _________ 
 Return per Ordinary share (pence)      4         15.80       76.92       92.72 
                                              _________   _________   _________ 
 

CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

 
                                                            As at          As at 
                                                        31 August    28 February 
                                                             2020           2020 
                                             Notes        GBP'000        GBP'000 
 Non-current assets 
 Investments at fair value through 
  profit or loss                                           87,551         95,057 
                                                        _________      _________ 
 Current assets 
 Debtors and prepayments                                      719            314 
 Money market funds                            6              721            511 
 Cash at bank and in hand                                     211            149 
                                                        _________      _________ 
                                                            1,651            974 
                                                        _________      _________ 
 Creditors: amounts falling due 
  within one year 
 Bank loans                                              (10,000)       (10,000) 
 Other creditors                                            (609)          (244) 
                                                        _________      _________ 
                                                         (10,609)       (10,244) 
                                                        _________      _________ 
 Net current liabilities                                  (8,958)        (9,270) 
                                                        _________      _________ 
 Net assets                                                78,593         85,787 
                                                        _________      _________ 
 Share capital and reserves 
 Called-up share capital                       8            4,090          4,123 
 Share premium account                                     19,391         19,391 
 Capital redemption reserve                                 1,445          1,412 
 Capital reserve                                           48,974         56,533 
 Revenue reserve                                            4,693          4,328 
                                                        _________      _________ 
 Equity shareholders' funds                                78,593         85,787 
                                                        _________      _________ 
 Net asset value per Ordinary share 
  (pence)                                      10          480.39         520.22 
                                                        _________      _________ 
 
 The accompanying notes are an integral part of the financial statements. 
 

CONDENSED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

 
 Six months ended 31 August 
  2020 
                                               Share      Capital 
                                     Share   premium   redemption   Capital   Revenue 
                                   capital   account      reserve   reserve   reserve     Total 
                           Notes   GBP'000   GBP'000      GBP'000   GBP'000   GBP'000   GBP'000 
 Balance at 28 February 
  2020                               4,123    19,391        1,412    56,533     4,328    85,787 
 Purchase of own shares 
  for cancellation                    (33)         -           33     (557)         -     (557) 
 Return after taxation                   -         -            -   (7,002)     2,176   (4,826) 
 Dividend paid               5           -         -            -         -   (1,811)   (1,811) 
                                     _____    ______       ______    ______    ______    ______ 
 Balance at 31 August 
  2020                               4,090    19,391        1,445    48,974     4,693    78,593 
                                     _____    ______       ______    ______    ______    ______ 
 
 Six months ended 31 August 
  2019 
                                               Share      Capital 
                                     Share   premium   redemption   Capital   Revenue 
                                   capital   account      reserve   reserve   reserve     Total 
                           Notes   GBP'000   GBP'000      GBP'000   GBP'000   GBP'000   GBP'000 
 Balance at 28 February 
  2019                               4,146    19,391        1,389    77,245     4,200   106,371 
 Purchase of own shares 
  for cancellation                     (8)         -            8     (176)         -     (176) 
 Return after taxation                   -         -            -    12,735     2,615    15,350 
 Dividend paid               5           -         -            -         -   (1,820)   (1,820) 
                                     _____    ______       ______    ______    ______    ______ 
 Balance at 31 August 
  2019                               4,138    19,391        1,397    89,804     4,995   119,725 
                                     _____    ______       ______    ______    ______    ______ 
 
 The accompanying notes are an integral part of the financial statements. 
 

CONDENSED STATEMENT OF CASHFLOWS (UNAUDITED)

 
                                            Six months   Six months 
                                                 ended        ended 
                                             31 August    31 August 
                                                  2020         2019 
                                               GBP'000      GBP'000 
 Operating activities 
 Net return before finance costs and 
  taxation                                     (4,509)       15,705 
 Adjustment for: 
 Losses/(gains) on investments                   6,663     (13,186) 
 Currency losses                                    59           19 
 Increase in accrued dividend income              (77)        (358) 
 Decrease/(increase) in other debtors 
  excluding tax                                      5          (2) 
 Increase in other creditors                        28           20 
 Stock dividends included in investment            (3)            - 
  income 
 Overseas withholding tax                        (247)        (261) 
                                             _________    _________ 
 Net cash flow from operating activities         1,919        1,937 
 
 Investing activities 
 Purchases of investments                     (18,505)      (4,994) 
 Sales of investments                           19,356        5,498 
                                             _________    _________ 
 Net cash from investing activities                851          504 
 
 Financing activities 
 Interest paid                                    (81)         (51) 
 Equity dividend paid                          (1,811)      (1,820) 
 Buyback of Ordinary shares                      (547)        (176) 
                                             _________    _________ 
 Net cash used in financing activities         (2,439)      (2,047) 
                                             _________    _________ 
 Increase in cash                                  331          394 
                                             _________    _________ 
 Analysis of changes in cash during the 
  period 
 Opening balance                                   660        1,117 
 Effect of exchange rate fluctuations 
  on cash held                                    (59)         (19) 
 Increase in cash and cash equivalents 
  as above                                         331          394 
                                             _________    _________ 
 Closing balance                                   932        1,492 
                                             _________    _________ 
 

NOTES TO THE ACCOUNTS:

 
 1.   Accounting policies 
      Basis of preparation . The condensed financial statements have 
       been prepared in accordance with Financial Reporting Standard 
       104 (Interim Financial Reporting) and with the Statement of 
       Recommended Practice for 'Financial Statements of Investment 
       Trust Companies and Venture Capital Trusts'. They have also 
       been prepared on a going concern basis and on the assumption 
       that approval as an investment trust will continue to be granted. 
      The Half Yearly financial statements have been prepared using 
       the same accounting policies applied as the preceding Annual 
       financial statements, which were prepared in accordance with 
       Financial Reporting Standard 102. 
 
 
 2.    Income 
                                           Six months   Six months 
                                                ended        ended 
                                            31 August    31 August 
                                                 2020         2019 
                                              GBP'000      GBP'000 
       Income from investments 
  Overseas dividends                            2,722        3,266 
       Stock dividends                              3            - 
                                            _________    _________ 
                                                2,725        3,266 
 
       Other income 
  Interest from money market funds                  2            6 
  Deposit interest                                  -            1 
                                            _________    _________ 
                                                    2            7 
                                            _________    _________ 
  Total income                                  2,727        3,273 
                                            _________    _________ 
 
 
 3.   Taxation. The taxation charge for the period represents withholding 
       tax suffered on overseas dividend income. 
 
 
 4.    Return per Ordinary share 
                                               Six months   Six months 
                                                    ended        ended 
                                                31 August    31 August 
                                                     2020         2019 
                                                        p            p 
  Revenue return                                    13.23        15.80 
  Capital return                                  (42.58)        76.92 
                                                _________    _________ 
  Total return                                    (29.35)        92.72 
                                                _________    _________ 
       The return per share is based on the 
        following figures: 
                                                  GBP'000      GBP'000 
  Revenue return                                    2,176        2,615 
  Capital return                                  (7,002)       12,735 
                                                _________    _________ 
  Total return                                    (4,826)       15,350 
                                                _________    _________ 
  Weighted average number of Ordinary 
   shares in issue                             16,444,274   16,555,959 
                                                _________    _________ 
 
 
 5.    Dividends 
                                                         Six months     Six months 
                                                              ended          ended 
                                                          31 August      31 August 
                                                               2020           2019 
                                                            GBP'000        GBP'000 
  2019 final dividend - 11.00p                                    -          1,821 
  2019 - return of unclaimed dividends                            -            (1) 
       2020 second interim dividend - 11.00p                  1,811              - 
                                                          _________      _________ 
                                                              1,811          1,820 
                                                          _________      _________ 
 
  The Company has declared an interim dividend for the year ended 
   28 February 2021 of 8.00p (year ended 28 February 2020 - 8.00p). 
   The interim dividend will be paid on 26 November 2020 to shareholders 
   on the register on 30 October 2020. The ex-dividend date will 
   be 29 October 2020. 
 
 
 6.   Money market funds . At the period end the Company had GBP721,000 
       (28 February 2020 - GBP511,000) invested in a zero-fee share 
       class of the Aberdeen Liquidity Fund (Lux) - Sterling Fund. 
 
 
 7.    Transaction costs. During the period expenses were incurred 
        in acquiring or disposing of investments classified as fair 
        value through profit or loss. These have been expensed through 
        capital and are included within (losses)/gains on investments 
        in the Condensed Statement of Comprehensive Income. The total 
        costs were as follows: 
 
                                         Six months              Six months 
                                              ended                   ended 
                                          31 August               31 August 
                                               2020                    2019 
                                            GBP'000                 GBP'000 
  Purchases                                      13                       7 
  Sales                                          19                       3 
                                          _________               _________ 
                                                 32                      10 
                                          _________               _________ 
 
 
 8.   Called-up share capital . During the six months ended 31 August 
       2020 the Company purchased 130,340 Ordinary shares for cancellation 
       at a cost of GBP557,000. During the six months ended 31 August 
       2019 the Company purchased 31,971 Ordinary shares for cancellation 
       at a cost of GBP176,000. 
      Subsequent to the period end, the Company has bought back for 
       cancellation a further 13,395 Ordinary shares at a cost of GBP55,000. 
 
 
 9.    Analysis of changes in net 
        debt 
                                                At                                    At 
                                       28 February      Currency        Cash   31 August 
                                              2020   differences       flows        2020 
                                           GBP'000       GBP'000     GBP'000     GBP'000 
  Cash and short term deposits                 660          (59)         331         932 
  Debt due within one year                (10,000)             -           -    (10,000) 
                                         _________     _________   _________   _________ 
                                           (9,340)          (59)         331     (9,068) 
                                         _________     _________   _________   _________ 
 
                                                At                                    At 
                                       28 February      Currency        Cash   31 August 
                                              2019   differences       flows        2019 
                                           GBP'000       GBP'000     GBP'000     GBP'000 
  Cash and short term deposits               1,117          (19)         394       1,492 
  Debt due within one year                 (5,650)             -           -     (5,650) 
                                         _________     _________   _________   _________ 
                                           (4,533)          (19)         394     (4,158) 
                                         _________     _________   _________   _________ 
 
  A statement reconciling the movement in net funds to the net 
   cash flow has not been presented as there are no differences 
   from the above analysis. 
 
 
 10.    Net asset value per Ordinary share 
                                                       As at         As at 
                                              31 August 2020   28 February 
                                                                      2020 
  Net assets attributable (GBP'000)                   78,593        85,787 
  Number of Ordinary shares in issue              16,360,223    16,490,563 
  Net asset value per Ordinary share 
   (p)                                                480.39        520.22 
 
 
 11.    Fair value hierarchy. FRS 102 requires an entity 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 classifications: 
        Level 1:     unadjusted quoted prices in an active market for identical 
                      assets or liabilities that the entity can access at 
                      the measurement date. 
        Level 2:     inputs other than quoted prices included within Level 
                      1 that are observable (i.e. developed using market data) 
                      for the asset or liability, either directly or indirectly. 
        Level 3:     inputs are unobservable (i.e. for which market data 
                      is unavailable) for the asset or liability. 
 
          The financial assets and liabilities measured at fair value 
          in the Condensed Statement of Financial Position are grouped 
          into the fair value hierarchy at the reporting date as follows: 
 
                                                       Level     Level     Level       Total 
                                                           1         2         3 
        As at 31 August 2020                         GBP'000   GBP'000   GBP'000     GBP'000 
        Financial assets at fair value through 
         profit or loss 
  Quoted equities                                     86,856       695         -      87,551 
                                                      ______    ______    ______      ______ 
  Net fair value                                      86,856       695         -      87,551 
                                                      ______    ______    ______      ______ 
 
                                                       Level     Level     Level       Total 
                                                           1         2         3 
        As at 28 February 2020                       GBP'000   GBP'000   GBP'000     GBP'000 
        Financial assets at fair value through 
         profit or loss 
  Quoted equities                                     94,309       748         -      95,057 
                                                      ______    ______    ______      ______ 
  Net fair value                                      94,309       748         -      95,057 
                                                      ______    ______    ______      ______ 
 
  Quoted equities. The fair value of the Company's investments 
   in quoted equities has been determined by reference to their 
   quoted bid prices at the reporting date. Quoted equities included 
   in Fair Value Level 1 are actively traded on recognised stock 
   exchanges. The Company's holding in Goodyear (Thailand) of GBP695,000 
   (28 February 2020 - GBP748,000) is classified as Level 2 due 
   to the lack of active trading in the stock. 
 
 
 
 12.   Related party and transactions with Manager. The Company has 
        an agreement with Aberdeen Standard Fund Managers Limited (the 
        "Manager") for the provision of investment management, secretarial, 
        accounting and administration and promotional activity services. 
       Up until 28 February 2020 the management fee was payable monthly 
        in arrears based on an annual amount of 0.9% of the net asset 
        value of the Company valued monthly. With effect from the start 
        of the Company's year ending 28 February 2021 the management 
        fee is payable monthly in arrears based on an annual amount 
        of 0.9% of the market capitalisation of the Company valued monthly. 
        This is also subject to an annual cap which limits the management 
        fee to the equivalent of 1.15% of NAV, calculated monthly. The 
        rebate provisions remain in place. The management agreement 
        is terminable on no less than one year's notice. During the 
        period investment management fees of GBP308,000 (31 August 2019 
        - GBP516,000) were payable to the Manager, with a balance of 
        GBP159,000 (31 August 2019 - GBP182,000) being outstanding at 
        the period end. 
 
         The promotional activities fee is based on an annual amount 
         of GBP58,500 (2019 - GBP58,500), payable quarterly in arrears. 
         During the period fees of GBP29,000 (31 August 2019 - GBP29,000) 
         were payable, with a balance of GBP24,000 (31 August 2019 - 
         GBP10,000) outstanding at the period end. 
       During the period, the Company has held an investment in a fund 
        managed by the same Manager. Details of this holding are disclosed 
        in note 6. 
 
 
 13.   Segmental information. The Company is engaged in a single segment 
        of business, which is to invest in equity securities. All of 
        the Company's activities are interrelated, and each activity 
        is dependent on the others. Accordingly, all significant operating 
        decisions are based on the Company as one segment. 
 
 
 14.   The financial information contained in this Half Yearly Financial 
        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 31 August 2020 and 31 August 
        2019 has not been reviewed or audited by the Company's external 
        auditor. 
       The financial information for the year ended 28 February 2020 
        has been extracted from the latest published audited financial 
        statements which have been filed with the Registrar of Companies. 
        The report of the Independent Auditor on those accounts contained 
        no qualification or statement under Section 498 (2), (3) or 
        (4) of the Companies Act 2006. 
 
 
 15.   This Half Yearly Financial Report was approved by the Board 
        on 16 October 2020. 
 
 
 ALTERNATIVE PERFORMANCE MEASURES ("APMS") 
 Alternative performance measures are numerical measures of the 
  Company's current, historical or future performance, financial 
  position or cash flows, other than financial measures defined 
  or specified in the applicable financial framework. The Company's 
  applicable financial framework includes FRS 102 and the AIC SORP. 
  The Directors assess the Company's performance against a range 
  of criteria which are viewed as particularly relevant for closed-end 
  investment companies. 
 Total return. NAV and share price total returns show how the 
  NAV and share price has performed over a period of time in percentage 
  terms, taking into account both capital returns and dividends 
  paid to shareholders. NAV total return involves investing the 
  same net dividend in the NAV of the Company with debt at fair 
  value on the date on which that dividend was earned. Share price 
  total return involves reinvesting the net dividend on the date 
  that the share price goes ex-dividend. 
 
   The tables below provide information relating to the NAVs and 
   share prices of the Company on the dividend reinvestment dates 
   during the six months ended 31 August 2020 and the year ended 
   28 February 2020 and total return for the periods. 
 
                                                   Dividend                         Share 
 Six months ended 31 August 2020                       rate           NAV           price 
 28 February 2020                                       N/A       520.22p         434.00p 
 28 May 2020                                         11.00p       516.67p         433.00p 
 31 August 2020                                         N/A       480.39p         419.00p 
                                                                _________       _________ 
 Total return                                                       -5.7%           -1.0% 
                                                                _________       _________ 
 
                                                   Dividend                         Share 
 Year ended 28 February 2020                           rate           NAV           price 
 28 February 2019                                       N/A       616.00p         980.00p 
 30 May 2019                                         11.00p       661.60p         562.50p 
 24 October 2019                                      8.00p       663.72p         575.00p 
 28 February 2020                                       N/A       520.22p         434.00p 
                                                                _________       _________ 
 Total return                                                      -16.6%          -18.7% 
                                                                _________       _________ 
 
 Discount to net asset value per share. The discount is the amount 
  by which the share price of 419.00p (28 February 2020 - 434.00p) 
  is lower than the net asset value per share of 480.39p (28 February 
  2020 - 520.22p), expressed as a percentage of the net asset value 
  per share. 
 Net gearing. Net gearing measures the total borrowings of GBP10,000,000 
  (28 February 2020 - GBP10,000,000) less cash and cash equivalents 
  of GBP918,000 (28 February 2020 - GBP660,000) divided by shareholders' 
  funds of GBP78,593,000 (28 February 2020 - GBP85,787,000), expressed 
  as a percentage. Under AIC reporting guidance cash and cash equivalents 
  includes net amounts due to brokers at the period end of GBP14,000 
  (28 February 2020 - GBPnil) as well as cash at bank or in hand 
  and money market funds of GBP932,000 (28 February 2020 - GBP660,000). 
 Ongoing charges. Ongoing charges ratio is calculated in accordance 
  with guidance issued by the AIC and represents the total of the 
  investment management fee and administration expenses (annualised) 
  divided by the average cum income net asset value throughout the 
  period. The ratio for 31 August 2020 is based on forecast ongoing 
  charges for the year ending 28 February 2021. The ratio for 28 
  February 2020 is based on ongoing charges for the year ended 28 
  February 2020. 
 
                                                       31 August 2020         28 February 
                                                                                     2020 
 Investment management fees (GBP'000)                             616                 980 
 Administrative expenses (GBP'000)                                394                 407 
 Less: non-recurring charges (GBP'000)                            (2)                (24) 
                                                            _________           _________ 
 Ongoing charges (GBP'000)                                      1,008               1,363 
                                                            _________           _________ 
 Average net assets{A} (GBP'000)                               80,202             110,133 
                                                            _________           _________ 
 Ongoing charges ratio                                          1.26%               1.24% 
                                                            _________           _________ 
 
 {A} During both periods net asset values with debt at fair value 
  equated to net asset value with debt at amortised cost due to 
  the short-term nature of the bank loans. 
 
   The ongoing charges ratio provided in the Company's Key Information 
   Document is calculated in line with the PRIIPs regulations which 
   amongst other things, includes the cost of borrowings and transaction 
   costs. 
 
 

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.

For Aberdeen New Thai Investment Trust plc

Aberdeen Asset Management PLC, Secretaries

END

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