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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Alliance Trust Plc | LSE:ATST | London | Ordinary Share | GB00B11V7W98 | ORD 2.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 8.00 | 0.64% | 1,258.00 | 1,254.00 | 1,258.00 | 1,256.00 | 1,250.00 | 1,256.00 | 347,602 | 16:35:14 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Trust,ex Ed,religious,charty | 609.05M | 599.67M | 2.0906 | 6.01 | 3.6B |
From May 2019 to May 2024
TIDMATST
RNS Number : 2230M
Alliance Trust PLC
27 July 2017
Alliance Trust PLC
27 July 2017
Results for six months ended 30 June 2017: an encouraging start
Hot Features
Premium
Financial Highlights As at 30 As at 31 As at 30
June 2017 Dec 2016 June 2016
Share price 700.0p 638.0p 524.0p
NAV per share 742.2p 667.5p 591.4p
Total dividend 6.58p 12.774p 5.65p
Lord Smith of Kelvin, Chairman of Alliance Trust PLC commented:
"This has been a transformational period for the Trust. We are pleased that the equity portfolio outperformed its benchmark against an uncertain market backdrop, all while transitioning to our new alliance of best ideas investment approach.
The geographic and sector weights of the Trust's portfolio closely mirror those of the benchmark. This means that the relative performance is driven by the active stock selection of the underlying managers chosen by WTW. Looking forward, WTW expects higher levels of volatility to characterise investment markets, resulting in an excellent environment for active stock picking and thus for Alliance Trust.
We are confident that the Trust will deliver attractive returns for our shareholders over the long term under the new approach, and are grateful to our shareholders for their support. Although it is still early days, the Trust is demonstrating that it can deliver outperformance at competitive cost. We believe we have a compelling offering and look forward to investing for generations."
H1 2017 Performance
-- Total Shareholder Return (TSR) of 10.8% and Net Asset Value (NAV) Total Return of 12.4%, compared with MSCI ACWI + 6.4%.
-- Equity portfolio outperformed the MSCI ACWI benchmark by 4.2%. -- Transition to new portfolio completed at a much cost lower than originally anticipated. -- Costs remain competitive and the Ongoing Charges Ratio is targeted to be below 65bps. -- ATS incurred additional costs in Q2, contributing to a loss for H1 of GBP1.5m.
-- First and second interim dividends, up 3% on 2016 dividends, continuing our 50 year long track-record of dividend growth.
-- Discount to NAV averaged 5.1% over the period (H1 2016: 10.3%), partly reflecting ongoing share buyback program.
-S-
For more information, please contact: Martin Pengelley Michelle Clarke Samantha Chiene Tulchan Communications Tel: 020 7353 4200
Alliance Trust PLC Interim Report 2017
Results for 6 months to 30 June 2017
Chairman's Statement
The Trust has successfully implemented its new investment approach. We are confident that our alliance of best ideas will deliver attractive returns for shareholders over the long term.
Our new investment approach supports our aim of achieving consistent outperformance at a competitive cost, while maintaining our progressive dividend policy. With the approval of our shareholders at the General Meeting in February, the management of the investment portfolio transitioned to Willis Towers Watson (WTW). It is responsible for selecting eight underlying managers that it rates as 'best-in-class', each of whom manages concentrated portfolios of their top stock selections. We are targeting an Ongoing Charges Ratio of below 0.65%.
Alliance Trust Investments (ATI) was responsible for the Trust's performance to 17th March, at which point the transition commenced. The new strategy became effective on 1st April, with the official appointment of WTW and the transition completed on 12th April. ATI was sold, at what we believe was a fair price, to Liontrust Asset Management, and that this is a good home for the team. We are grateful to all the team at ATI for their work on our behalf.
This first half of 2017 has been characterised by the transition the business has gone through, and we strongly believe we now have the foundations in place to deliver strong and sustainable performance for our shareholders in the future.
Financial Performance
Over the period, the Trust performed well. Total Shareholder Return was 10.8%, Net Asset Value (NAV) Total Return was 12.4% and the share price rose 9.7% to 700.0p. We are encouraged that, despite undertaking the transition to the new portfolio, the Trust outperformed its benchmark on a NAV total return basis by 6.0%, primarily driven by the outperformance of the equity portfolio. Additionally, the costs of the transition were much lower than originally anticipated, which is a meaningful saving for the business and our administration expenses for the period are showing only a modest increase at GBP8.4m (2016: GBP7.7m).
Alliance Trust Savings (ATS) has seen growth in both assets under administration and customer accounts. Whilst we had hoped that ATS would report a profit for the period, additional costs were incurred in the second quarter contributing to a loss for the half year of GBP1.5m (2016: GBP0.4m profit). In the second half of the year ATS plans to continue to invest to improve its levels of customer service. We expect it to report a loss for the year.
Dividend
We are very proud of our dividend track record and the Board is delighted that the Trust has achieved 50 years of consecutive dividend growth, and has been recognised by the AIC through its Dividend Hero Award. The Board continues its progressive dividend policy and has declared a dividend of 3.29p per ordinary share payable on 2nd October 2017 to shareholders on the register on 1st September 2017.
Buybacks
Towards the end of last year, we introduced a more active approach to share buybacks, supporting our determination to narrow materially the Trust's discount to NAV which averaged 5.1% over the period. Consistent with this programme, the Trust also repurchased Elliott's shareholding following shareholder approval in February.
In summary
The first half of 2017 has been transformational for the Trust. We have a new investment approach which, although still in its early days, is demonstrating that it can deliver outperformance at competitive cost. We believe we now have a compelling offering and look forward to continuing to invest for generations.
Lord Smith of Kelvin
Chairman
26 July 2017
Company Performance
30 June 31 December 30 June
2017 2016 2016
------------------- -------- ------------ --------
Share price 700.0p 638.0p 524.0p
------------------- -------- ------------ --------
Net Asset Value
(NAV) per share* 742.2p 667.5p 591.4p
------------------- -------- ------------ --------
Discount to NAV 5.7% 4.4% 11.4%
------------------- -------- ------------ --------
Average Discount
to NAV** 5.1% 10.1% 10.3%
------------------- -------- ------------ --------
Source: WTW and Morningstar.
*Balance sheet value calculated with debt at fair value.
**Six months to 30 June and 12 months to 31 December.
Portfolio Performance
Average Total Contribution
Contribution Analysis Weight Return to Total
(%) Return
------------------------- -------- -------- -------------
Equity Portfolio 99.8 10.6 9.8
Foreign Exchange
Contracts and Index
Futures N/A N/A 0.0
Non-core Investments 8.0 7.3 0.6
Effect of Gearing* -7.8 N/A 0.6
------------------------- -------- -------- -------------
Investment Portfolio
Total 100.0 11.0
Operating subsidiary 0.0
Cash and Accruals 0.4
Share Buybacks 1.3
Total Administration
Costs -0.3
------------------------- -------- -------- -------------
NAV including Income
Total Return 12.4
Effect of Discount -1.6
------------------------- -------- -------- -------------
Share Price Total
Return 10.8
------------------------- -------- -------- -------------
MSCI ACWI Total
Return 6.4
------------------------- -------- -------- -------------
Source: WTW, BNY Mellon Fund Services (Ireland) Ltd, Morningstar, MSCI Inc and FactSet.
* Gearing effect is attributed assuming that all borrowing is invested in the equity portfolio and is net of the cost of borrowing to achieve the gearing.
Shareholder Return
As at 30 June 6 months 1 year 3 years 5 years 2017 ------------------- --------- ------- -------- -------- Total Shareholder Return (TSR) 10.8% 36.4% 68.8% 124.2% ------------------- --------- ------- -------- -------- NAV Total Return 12.4% 27.3% 55.0% 95.7% ------------------- --------- ------- -------- -------- MSCI ACWI 6.4% 22.9% 54.1% 104.7% ------------------- --------- ------- -------- --------
Source: WTW and FactSet.
Administration Expenses
6 months Year to 6 months
to 31 December to
30 June 2016 30 June
2017 2016
----------------------- ---------- ------------- ----------
Total Administrative GBP8.4m GBP16.8m GBP7.7m
Expenses
Less Non-recurring GBP(1.1)m GBP(3.4)m GBP(1.4)m
Expenses*
----------------------- ---------- ------------- ----------
Ongoing Administrative GBP7.3m GBP13.4m GBP6.3m
Expenses
----------------------- ---------- ------------- ----------
Source: WTW.
* Includes reorganisation, strategic review and extraordinary general meeting costs.
Investment Approach
Alliance Trust is an investment trust with a unique global equity portfolio providing access to an alliance of 'best-in-class' equity managers and their best ideas, at a competitive cost. It has been a pioneer in investing since 1888 and its objective is to be a core holding for investors seeking increasing value over the long term. The equity portfolio's target is to outperform the MSCI All Country World Index by 2% per year after costs over rolling three year periods.
Investment Portfolio
Our investment portfolio is made up of:
-- Global equity investments -- Our subsidiary business - Alliance Trust Savings -- Non-core investments - Mineral Rights* - Private Equity* - Funds - Liontrust Asset Management PLC shares**
* These will be disposed of at the appropriate time.
** Liontrust Asset Management PLC shares which formed part of the consideration received on the sale of Alliance Trust Investments (valued at GBP22.8m).
The equity investments are now managed by WTW who provide the Company with access to a range of specialist equity managers and oversee the management of the funds. They have appointed eight equity managers, the majority of whom are not otherwise accessible to individual investors in the UK.
Each of the equity managers runs a bespoke portfolio for Alliance Trust focused solely on their best ideas, each containing about 20 stocks. This distinctive approach means that every stock is one in which each equity manager has their highest conviction - investments which they believe are most likely to deliver positive absolute and relative returns. In addition, there is also an emerging markets portfolio which has around 50 stocks. Together these stocks comprise the Company's equity portfolio.
WTW's Investment Committee allocates funds across the eight equity managers to manage the investment and risk profile of the portfolio.
WTW is also responsible for oversight of the non-core assets.
The Alternative Investment Fund Manager and Investment Manager
Towers Watson Investment Management (Ireland) Limited (TWIMI) has been appointed as the Company's Alternative Investment Fund Manager (AIFM). The AIFM has delegated the management of the Company's portfolio to Towers Watson Investment Management Limited (TWIM). Both TWIMI and TWIM are members of the Willis Towers Watson group of companies.
Willis Towers Watson (NASDAQ: WLTW) has roots dating back to 1828 and is a leading investment group with over 39,000 employees across all of its businesses.
A significant element of WTW's business is the provision of investment consultancy. However, WTW is engaged as the Company's Investment Manager.
The Equity Managers
The eight equity managers selected by WTW have an unconstrained mandate allowing them to choose what they believe are the best stocks. The managers have been selected not just for their capability but to provide a range of different and complementary investment styles.
Black Creek Investment Management (10.3% of the equity portfolio) looks for companies that are growing, are leaders in their markets and gaining market share. These companies tend to benefit from huge barriers to entry and sustainable competitive advantages.
First Pacific Advisors (12.6% of the equity portfolio) employs a long-term value investment approach, investing in companies that they believe have sustainable business models, exhibit financial strength, are run by operationally strong managers and whose stocks trade at a significant discount to FPA's estimate of intrinsic value.
GQG Partners (10.9% of the equity portfolio) looks for high-quality and sustainable businesses which have enduring underlying strength to provide capital protection in down markets and attractive returns to long-term investors over a full market cycle. In addition, GQG manages a second portfolio (4.4% of the equity portfolio) for the Company with particular focus on global emerging market companies.
Jupiter Asset Management (9.0% of the equity portfolio) is well known in the market as a long--standing practitioner of contrarian value investing. It seeks businesses that are out--of--favour and undervalued, but have prominent franchises and sound balance sheets.
Lyrical Asset Management (16.5% of the equity portfolio) maintains a strict discipline around investing in quality companies, seeking businesses that it believes will generate attractive returns on their invested capital, are resilient with reasonable debt levels, positive growth, attractive margins, competent management, and the flexibility to react to all phases of the business cycle.
River and Mercantile Asset Management (8.7% of the equity portfolio) invests in Recovery Equities, through an investment approach that it believes identifies value at different stages of a company's lifecycle.
Sustainable Growth Advisors (13.7% of the equity portfolio) focuses on building portfolios of unique, high quality global growth businesses that possess strong pricing power, offer recurring revenue generation and benefit from attractive, long runways of growth.
Veritas Asset Management (13.9% of the equity portfolio) focuses on utilising its proprietary Real Return Approach and a number of other methods including themes to identify industries and companies that are well positioned to benefit from medium term growth.
Investment Objective
Alliance Trust is an investment company with investment trust status. The Company's objective is to be a core investment for investors seeking increasing value over the long term. The Company has no fixed asset allocation benchmark and it invests in a wide range of asset classes throughout the world to achieve its objective. The Company's focus is to generate a real return for shareholders over the medium to long term by a combination of capital growth and a rising dividend.
Investment Management Report
Summary
-- In the period to 17 March the equity portfolio's performance exceeded our benchmark by 1.9%
-- The transition of the portfolio between our managers was achieved at low cost and was completed on 12 April
-- In the period since WTW's appointment the equity portfolio's performance exceeded our benchmark by 2.4%
Alliance Trust Investments was the investment manager to 31 March and had investment discretion until 17 March when BlackRock was appointed to manage the transition. WTW was appointed on 1 April and the eight equity managers then took responsibility for managing their portfolios at various dates until the transition was completed on 12 April.
Alliance Trust Investments Report for 1 January to 17 March 2017
The equity portfolio performed strongly over this period returning 9.2% versus the 7.3% for the MSCI ACWI benchmark. The strong value style headwind that buffeted the equity portfolio during the final quarter of 2016 abated during the first quarter of 2017 to reverse much of the loss experienced last year, creating a market environment conducive to the large cap growth stocks in the portfolio.
This market environment favoured the Company's overweight exposure to Info Tech and Health Care stocks with much of the outperformance coming from these two sectors. The Company's Info Tech stalwarts such as Activision Blizzard, Cadence Design Systems and the core Health Care holdings in SS&C Technologies, CSL, Amgen and Roche were notable contributors.
Report of the transition managed by BlackRock from 17 March to implementation of new portfolio
BlackRock Advisors (UK) Limited (BlackRock) was appointed as Transition Manager on 17 March 2017 to assist with the transition of the portfolio to the new structure and to align the portfolio with the Company's new investment approach. BlackRock was selected by the Board as Transition Manager following a recommendation from WTW and a detailed review and discussion of its proposed strategy for the transition.
Following appointment, the incumbent Alliance Trust Investments' portfolio was traded and reshaped to create nine separate portfolios including an emerging markets portfolio, based on the "wish-lists" provided by the new equity managers.
The total value of buys and sells completed during the transition was approximately GBP4.5bn. This was formed of 176 securities to be purchased and 56 securities to be sold, with 4.6% of the legacy equity portfolio being retained. All transition trading was completed as of 12 April 2017 by which time all of the portfolios had been transferred to the control of the newly appointed equity managers.
The market environment during the transition period was quiet with lower than average trading volumes globally. BlackRock traded the portfolio so as to manage the risk of moving prices.
Prior to the transition, WTW estimated the direct costs (commissions, taxes, fees and bid/offer spreads) would be in the region of 30bps. The final direct costs were much lower at 18bps, which is a meaningful cost saving for the Company. Indirect costs were also kept to a minimum.
The transition was completed well within the timeframe expected, and there were no errors in or deviations from the transition plan. The transition portfolio performance, even after costs, in the short period of the transition performed better than if the legacy portfolio had remained in place and not been traded.
Willis Towers Watson's Report for 1 April to 30 June 2017
Market Review
The first half of the year was dominated by political headlines such as a snap general election in the UK, triggering of Article 50, elections across various Euro countries and a stream of tweets coming from the US. Despite the political uncertainty, economic indicators and business surveys posted strong figures close to pre-crisis highs with equities gaining in both emerging and developed markets. European elections have also rejected anti-EU politicians in Austria, the Netherlands and France, potentially implying that the widely feared break-up of the Eurozone may not be as imminent as some would like to think.
The US economy continues to look healthy, prompting the Federal Reserve (Fed) to raise rates again in June. The Fed also signalled that it may start to reduce the size of its balance sheet "relatively soon". These actions may potentially have an impact on equity prices.
The economic and political outlook in the UK continues to be highly uncertain. The result of Theresa May's decision to call a snap general election leaves the UK in a weakened position at a crucial time for the country as it begins its Brexit negotiations. Whilst political uncertainty across Europe has fallen, the risk remains significant within the UK.
Equity Portfolio Performance
The new investment approach adopted by Alliance Trust has been in place since the start of April 2017. Over this quarter the equity portfolio returned 3.0%, significantly outperforming the MSCI All Country World Index (ACWI) which returned 0.6%. Even though the results are short term, we are very pleased with the initial performance achieved under the new approach.
Investment Outlook
We continue to expect higher levels of market volatility. Periods of strong equity market returns coupled with low expectations of volatility in the market, as observed in recent months, are typically followed by periods of higher volatility. We believe that future equity returns over the longer term are unlikely to keep up with the exceptionally strong returns of recent years. This may be exacerbated by the possible gradual reduction in monetary stimulus or raising of interest rates by the main central banks.
We also believe that the high-level market view masks significant dispersion between companies, providing an excellent environment for active stock selection. We continue to position the portfolio relatively neutrally against the market with respect to countries, sector and styles to allow returns for the portfolio to be driven by the stock selection of our managers.
Non-core Investments
The ongoing divestment of non-core investments continues. In the first half of 2017 the Company sold its holding in Euroclear and the final distribution from Albany Venture Partners III LP, a legacy direct private equity holding, was received in June. The reduction in value of private equity and indirect property holdings to GBP97m from GBP113m as at 31 December 2016 reflects continuing divestments. This resulted in the release of cash for investment in the equity portfolio. We expect further reductions in non-core holdings as remaining assets are realised in an orderly manner.
Alliance Trust Savings
Alliance Trust Savings has made a number of important changes designed to enhance its longer-term performance through improvements to the operating platform and customer service. In the second quarter additional costs associated with these changes have been incurred and, with a delay in the full launch of the new technology platform, a loss of GBP1.5m was made in the first half of the year (2016: GBP0.4m profit).
During the period, Alliance Trust Savings has delivered:
-- Continued growth across all business channels with total assets under administration now over GBP15bn, an increase of 11% since 31 December 2016; and
-- An increase in the number of customer accounts of 3% to almost 114,000 since the year end.
We have concluded that the valuation of the Company's investment in Alliance Trust Savings should remain at GBP61.5m. In coming to this conclusion the Directors considered the underlying profitability of Alliance Trust Savings against the background of its financial performance, its continued focus on improving customer service and the potential to further develop the business. This valuation will be assessed in the second half of 2017 as the planned enhancements to customer service are introduced.
Disposal of Alliance Trust Investments
As reported in our Annual Report for 2016, we sold Alliance Trust Investments to Liontrust Asset Management. This completed in early April and the value of the shares received as part of the consideration has increased by GBP3m from that reported at the year end.
Company Portfolio Review
Equity holdings as at 30 June 2017
Stock Sector Country % of Value
of
listing quoted GBPm
equities
------------------------ ------------------------ ---------------- --------- ------------
UnitedHealth
Group Health Care United States 1.8 45.5
------------------------ ------------------------ ---------------- --------- ------------
Charter Communications Consumer Discretionary United States 1.8 43.5
------------------------ ------------------------ ---------------- --------- ------------
Information
Microsoft Technology United States 1.6 38.9
------------------------ ------------------------ ---------------- --------- ------------
Information
Oracle Technology United States 1.6 38.9
------------------------ ------------------------ ---------------- --------- ------------
Nielsen Industrials United Kingdom 1.4 35.8
------------------------ ------------------------ ---------------- --------- ------------
CVS Health Consumer Staples United States 1.4 34.7
------------------------ ------------------------ ---------------- --------- ------------
Nestle Consumer Staples Switzerland 1.3 32.3
------------------------ ------------------------ ---------------- --------- ------------
Information
Western Union Technology United States 1.3 31.5
------------------------ ------------------------ ---------------- --------- ------------
Johnson Controls
International Industrials Ireland 1.3 31.2
------------------------ ------------------------ ---------------- --------- ------------
Ryanair Industrials Ireland 1.2 30.9
------------------------ ------------------------ ---------------- --------- ------------
Anglo American Materials United Kingdom 1.2 30.7
------------------------ ------------------------ ---------------- --------- ------------
Comcast Consumer Discretionary United States 1.2 30.0
------------------------ ------------------------ ---------------- --------- ------------
Safran Industrials France 1.1 27.5
------------------------ ------------------------ ---------------- --------- ------------
Airbus Industrials Netherlands 1.0 25.8
------------------------ ------------------------ ---------------- --------- ------------
Information
Alphabet Technology United States 1.0 25.4
------------------------ ------------------------ ---------------- --------- ------------
AIA Group Financials Hong Kong 1.0 24.9
------------------------ ------------------------ ---------------- --------- ------------
HDFC Bank Financials India 1.0 24.9
------------------------ ------------------------ ---------------- --------- ------------
TP ICAP Financials United Kingdom 1.0 24.6
------------------------ ------------------------ ---------------- --------- ------------
Allergan Health Care Ireland 1.0 24.4
------------------------ ------------------------ ---------------- --------- ------------
PageGroup Industrials United Kingdom 1.0 23.6
------------------------ ------------------------ ---------------- --------- ------------
Information
Samsung Electronics Technology South Korea 0.9 23.6
------------------------ ------------------------ ---------------- --------- ------------
Koninklijke
Philips Industrials Netherlands 0.9 23.3
------------------------ ------------------------ ---------------- --------- ------------
Britvic Consumer Staples United Kingdom 0.9 23.2
------------------------ ------------------------ ---------------- --------- ------------
Information
Baidu Technology Cayman Islands 0.9 22.9
------------------------ ------------------------ ---------------- --------- ------------
Regeneron
Pharmaceuticals Health Care United States 0.9 22.9
------------------------ ------------------------ ---------------- --------- ------------
Aetna Health Care United States 0.9 22.8
------------------------ ------------------------ ---------------- --------- ------------
Information
Western Digital Technology United States 0.9 22.7
------------------------ ------------------------ ---------------- --------- ------------
Liberty Interactive Consumer Discretionary United States 0.9 22.5
------------------------ ------------------------ ---------------- --------- ------------
Novo Nordisk Health Care Denmark 0.9 22.1
------------------------ ------------------------ ---------------- --------- ------------
Anthem Health Care United States 0.9 22.0
------------------------ ------------------------ ---------------- --------- ------------
Information
Tencent Technology Cayman Islands 0.9 21.9
------------------------ ------------------------ ---------------- --------- ------------
Whirlpool Consumer Discretionary United States 0.9 21.8
------------------------ ------------------------ ---------------- --------- ------------
Information
Corning Technology United States 0.9 21.6
------------------------ ------------------------ ---------------- --------- ------------
Amazon Consumer Discretionary United States 0.9 21.5
------------------------ ------------------------ ---------------- --------- ------------
Kansas City
Southern Industrials United States 0.8 21.1
------------------------ ------------------------ ---------------- --------- ------------
Aflac Financials United States 0.8 21.1
------------------------ ------------------------ ---------------- --------- ------------
Information
Infosys Technology India 0.8 21.1
------------------------ ------------------------ ---------------- --------- ------------
Eaton Industrials United States 0.8 20.8
------------------------ ------------------------ ---------------- --------- ------------
Danone Consumer Staples France 0.8 20.8
------------------------ ------------------------ ---------------- --------- ------------
Hugo Boss Consumer Discretionary Germany 0.8 20.7
------------------------ ------------------------ ---------------- --------- ------------
Information
Broadcom Technology Singapore 0.8 20.7
------------------------ ------------------------ ---------------- --------- ------------
Information
TE Connectivity Technology Switzerland 0.8 20.4
------------------------ ------------------------ ---------------- --------- ------------
Information
SAP Se Technology Germany 0.8 20.3
------------------------ ------------------------ ---------------- --------- ------------
Celanese Materials United States 0.8 20.3
------------------------ ------------------------ ---------------- --------- ------------
AerCap Industrials Netherlands 0.8 20.1
------------------------ ------------------------ ---------------- --------- ------------
Information
Visa Technology United States 0.8 20.0
------------------------ ------------------------ ---------------- --------- ------------
Lincoln National Financials United States 0.8 19.8
------------------------ ------------------------ ---------------- --------- ------------
Prosegur Industrials Spain 0.8 19.8
------------------------ ------------------------ ---------------- --------- ------------
Priceline Consumer Discretionary United States 0.8 19.7
------------------------ ------------------------ ---------------- --------- ------------
Ameriprise
Financial Financials United States 0.8 19.1
------------------------ ------------------------ ---------------- --------- ------------
Information
Flex Technology Singapore 0.8 19.0
------------------------ ------------------------ ---------------- --------- ------------
American Express Financials United States 0.8 18.8
------------------------ ------------------------ ---------------- --------- ------------
Goodyear Tire
& Rubber Consumer Discretionary United States 0.8 18.8
------------------------ ------------------------ ---------------- --------- ------------
Suncor Energy Energy Canada 0.7 18.6
------------------------ ------------------------ ---------------- --------- ------------
Mondelez International Consumer Staples United States 0.7 18.5
------------------------ ------------------------ ---------------- --------- ------------
EOG Resources Energy United States 0.7 18.4
------------------------ ------------------------ ---------------- --------- ------------
Information
Facebook Technology United States 0.7 18.2
------------------------ ------------------------ ---------------- --------- ------------
Core Laboratories Energy Netherlands 0.7 18.0
------------------------ ------------------------ ---------------- --------- ------------
Lowe's Companies Consumer Discretionary United States 0.7 17.9
------------------------ ------------------------ ---------------- --------- ------------
H&R Block Consumer Discretionary United States 0.7 17.3
------------------------ ------------------------ ---------------- --------- ------------
Pearson Consumer Discretionary United Kingdom 0.7 17.1
------------------------ ------------------------ ---------------- --------- ------------
Dollar General Consumer Discretionary United States 0.7 16.8
------------------------ ------------------------ ---------------- --------- ------------
Exxon Mobil Energy United States 0.7 16.4
------------------------ ------------------------ ---------------- --------- ------------
HeidelbergCement Materials Germany 0.6 16.0
------------------------ ------------------------ ---------------- --------- ------------
ICICI Bank Financials India 0.6 16.0
------------------------ ------------------------ ---------------- --------- ------------
Daikin Industries Industrials Japan 0.6 15.9
------------------------ ------------------------ ---------------- --------- ------------
OC Oerlikon Industrials Switzerland 0.6 15.5
------------------------ ------------------------ ---------------- --------- ------------
BP Energy United Kingdom 0.6 15.5
------------------------ ------------------------ ---------------- --------- ------------
Sumitomo Mitsui
Financial Financials Japan 0.6 15.4
------------------------ ------------------------ ---------------- --------- ------------
Information
Capgemini Technology France 0.6 15.3
------------------------ ------------------------ ---------------- --------- ------------
Moeller-Maersk Industrials Denmark 0.6 15.1
------------------------ ------------------------ ---------------- --------- ------------
Centrica Utilities United Kingdom 0.6 15.0
------------------------ ------------------------ ---------------- --------- ------------
Deutsche Börse Financials Germany 0.6 14.9
------------------------ ------------------------ ---------------- --------- ------------
Eni Energy Italy 0.6 14.8
------------------------ ------------------------ ---------------- --------- ------------
Sberbank Of
Russia Financials Russia 0.6 14.7
------------------------ ------------------------ ---------------- --------- ------------
Royal Bank
Of Scotland Financials United Kingdom 0.6 14.6
------------------------ ------------------------ ---------------- --------- ------------
Information
Ericsson Technology Sweden 0.6 14.6
------------------------ ------------------------ ---------------- --------- ------------
Check Point Information
Software Technology Technology Israel 0.6 14.5
------------------------ ------------------------ ---------------- --------- ------------
Standard Chartered Financials United Kingdom 0.6 14.1
------------------------ ------------------------ ---------------- --------- ------------
Information
Cisco Systems Technology United States 0.6 14.0
------------------------ ------------------------ ---------------- --------- ------------
BNP Paribas Financials France 0.5 13.6
------------------------ ------------------------ ---------------- --------- ------------
Rolls Royce Industrials United Kingdom 0.5 13.5
------------------------ ------------------------ ---------------- --------- ------------
Solocal Consumer Discretionary France 0.5 13.5
------------------------ ------------------------ ---------------- --------- ------------
Express Scripts
Holding Health Care United States 0.5 13.4
------------------------ ------------------------ ---------------- --------- ------------
Johnson &
Johnson Health Care United States 0.5 13.4
------------------------ ------------------------ ---------------- --------- ------------
Grupo Financiero
Santander Financials Mexico 0.5 13.1
------------------------ ------------------------ ---------------- --------- ------------
Schneider
Electric Industrials France 0.5 13.0
------------------------ ------------------------ ---------------- --------- ------------
Capita Industrials United Kingdom 0.5 13.0
------------------------ ------------------------ ---------------- --------- ------------
Information
Lam Research Technology United States 0.5 12.9
------------------------ ------------------------ ---------------- --------- ------------
Telecommunication
SoftBank Services Japan 0.5 12.9
------------------------ ------------------------ ---------------- --------- ------------
Information
Teradata Technology United States 0.5 12.9
------------------------ ------------------------ ---------------- --------- ------------
Macquarie Financials Australia 0.5 12.6
------------------------ ------------------------ ---------------- --------- ------------
London Stock
Exchange Financials United Kingdom 0.5 12.6
------------------------ ------------------------ ---------------- --------- ------------
Inovalon Health Care United States 0.5 12.5
------------------------ ------------------------ ---------------- --------- ------------
Ambev Consumer Staples Brazil 0.5 12.1
------------------------ ------------------------ ---------------- --------- ------------
Santen Pharmaceutical Health Care Japan 0.5 12.1
------------------------ ------------------------ ---------------- --------- ------------
Lloyds Banking
Group Financials United Kingdom 0.5 12.0
------------------------ ------------------------ ---------------- --------- ------------
Anta Sports
Products Consumer Discretionary Hong Kong 0.5 11.6
------------------------ ------------------------ ---------------- --------- ------------
Citigroup Financials United States 0.5 11.6
------------------------ ------------------------ ---------------- --------- ------------
InterContinental Financials United States 0.5 11.5
------------------------ ------------------------ ---------------- --------- ------------
Sonic Healthcare Health Care Australia 0.5 11.5
------------------------ ------------------------ ---------------- --------- ------------
BorgWarner Consumer Discretionary United States 0.5 11.5
------------------------ ------------------------ ---------------- --------- ------------
Accor Consumer Discretionary France 0.5 11.5
------------------------ ------------------------ ---------------- --------- ------------
Information
Nintendo Technology Japan 0.5 11.5
------------------------ ------------------------ ---------------- --------- ------------
Aristocrat
Leisure Consumer Discretionary Australia 0.5 11.3
------------------------ ------------------------ ---------------- --------- ------------
DSM Materials Netherlands 0.5 11.3
------------------------ ------------------------ ---------------- --------- ------------
Galaxy Entertainment Consumer Discretionary Hong Kong 0.4 11.2
------------------------ ------------------------ ---------------- --------- ------------
Galp Energia Energy Portugal 0.4 11.1
------------------------ ------------------------ ---------------- --------- ------------
Bank of America Financials United States 0.4 11.0
------------------------ ------------------------ ---------------- --------- ------------
Roche Health Care Switzerland 0.4 11.0
------------------------ ------------------------ ---------------- --------- ------------
Charles Schwab Financials United States 0.4 10.9
------------------------ ------------------------ ---------------- --------- ------------
Taiwan Semiconductor Information
Manufacturing Technology Taiwan 0.4 10.9
------------------------ ------------------------ ---------------- --------- ------------
Wells Fargo Financials United States 0.4 10.9
------------------------ ------------------------ ---------------- --------- ------------
Information
Mastercard Technology United States 0.4 10.8
------------------------ ------------------------ ---------------- --------- ------------
CME Group Financials United States 0.4 10.7
------------------------ ------------------------ ---------------- --------- ------------
International Information
Business Machines Technology United States 0.4 10.6
------------------------ ------------------------ ---------------- --------- ------------
DIA Consumer Staples Spain 0.4 10.6
------------------------ ------------------------ ---------------- --------- ------------
FTI Consulting Industrials United States 0.4 9.8
------------------------ ------------------------ ---------------- --------- ------------
Information
Carsales.com Technology Australia 0.4 9.8
------------------------ ------------------------ ---------------- --------- ------------
Applus Services Industrials Spain 0.4 9.8
------------------------ ------------------------ ---------------- --------- ------------
Prada Consumer Discretionary Italy 0.4 9.7
------------------------ ------------------------ ---------------- --------- ------------
Sanofi Health Care France 0.4 9.4
------------------------ ------------------------ ---------------- --------- ------------
Marks & Spencer Consumer Discretionary United Kingdom 0.4 9.3
------------------------ ------------------------ ---------------- --------- ------------
South32 Materials Australia 0.4 9.3
------------------------ ------------------------ ---------------- --------- ------------
Information
MYOB Technology Australia 0.4 9.0
------------------------ ------------------------ ---------------- --------- ------------
Philip Morris
International Consumer Staples United States 0.4 8.9
------------------------ ------------------------ ---------------- --------- ------------
DONG Energy Utilities Denmark 0.4 8.7
------------------------ ------------------------ ---------------- --------- ------------
Naspers Consumer Discretionary South Africa 0.3 8.4
------------------------ ------------------------ ---------------- --------- ------------
Ansell Health Care Australia 0.3 8.3
------------------------ ------------------------ ---------------- --------- ------------
Malaysia Airports Industrials Malaysia 0.3 8.3
------------------------ ------------------------ ---------------- --------- ------------
Tesco Consumer Staples United Kingdom 0.3 8.2
------------------------ ------------------------ ---------------- --------- ------------
Celgene Health Care United States 0.3 8.2
------------------------ ------------------------ ---------------- --------- ------------
Kimberly -
Clark de Mexico Consumer Staples Mexico 0.3 8.2
------------------------ ------------------------ ---------------- --------- ------------
Sands China Consumer Discretionary Hong Kong 0.3 7.9
------------------------ ------------------------ ---------------- --------- ------------
TS Tech Consumer Discretionary Japan 0.3 7.4
------------------------ ------------------------ ---------------- --------- ------------
Information
QUALCOMM Technology United States 0.3 7.3
------------------------ ------------------------ ---------------- --------- ------------
Hengan International
Group Consumer Staples Cayman Islands 0.3 6.5
------------------------ ------------------------ ---------------- --------- ------------
Daiichi Sankyo Consumer Discretionary Japan 0.3 6.3
------------------------ ------------------------ ---------------- --------- ------------
Information
Alibaba Technology Cayman Islands 0.2 5.3
------------------------ ------------------------ ---------------- --------- ------------
ARYZTA Consumer Staples Switzerland 0.2 5.1
------------------------ ------------------------ ---------------- --------- ------------
Gafisa Consumer Discretionary Brazil 0.2 4.8
------------------------ ------------------------ ---------------- --------- ------------
Bank Central
Asia Financials Indonesia 0.2 4.4
------------------------ ------------------------ ---------------- --------- ------------
British American
Tobacco Consumer Staples United Kingdom 0.2 4.2
------------------------ ------------------------ ---------------- --------- ------------
B3 Financials Brazil 0.2 4.0
------------------------ ------------------------ ---------------- --------- ------------
JD.com Consumer Discretionary Cayman Islands 0.1 3.1
------------------------ ------------------------ ---------------- --------- ------------
CP ALL Consumer Staples Thailand 0.1 3.1
------------------------ ------------------------ ---------------- --------- ------------
Housing Development
Finance Financials India 0.1 2.9
------------------------ ------------------------ ---------------- --------- ------------
Itau Unibanco Financials Brazil 0.1 2.8
------------------------ ------------------------ ---------------- --------- ------------
Telekomunikasi Telecommunication
Indonesia Services Indonesia 0.1 2.5
------------------------ ------------------------ ---------------- --------- ------------
Heineken Consumer Staples Netherlands 0.1 2.4
------------------------ ------------------------ ---------------- --------- ------------
Information
MercadoLibre Technology United States 0.1 2.3
------------------------ ------------------------ ---------------- --------- ------------
CK Hutchison Industrials Cayman Islands 0.1 2.1
------------------------ ------------------------ ---------------- --------- ------------
Moscow Exchange Financials Russia 0.1 2.1
------------------------ ------------------------ ---------------- --------- ------------
Grupo Aeroportuario
del Sureste Industrials Mexico 0.1 2.0
------------------------ ------------------------ ---------------- --------- ------------
ALROSA Materials Russia 0.1 1.9
------------------------ ------------------------ ---------------- --------- ------------
Information
NVIDIA Technology United States 0.1 1.8
------------------------ ------------------------ ---------------- --------- ------------
Bank Rakyat Financials Indonesia 0.1 1.7
------------------------ ------------------------ ---------------- --------- ------------
Raia Drogasil Consumer Staples Brazil 0.1 1.7
------------------------ ------------------------ ---------------- --------- ------------
InterGlobe
Aviation Industrials India 0.1 1.6
------------------------ ------------------------ ---------------- --------- ------------
OTP Bank Financials Hungary 0.1 1.6
------------------------ ------------------------ ---------------- --------- ------------
Grupo Aeroportuario
del Pacifico Industrials Mexico 0.1 1.5
------------------------ ------------------------ ---------------- --------- ------------
Credicorp Financials Bermuda 0.1 1.4
------------------------ ------------------------ ---------------- --------- ------------
Information
Yandex Technology Netherlands 0.1 1.4
------------------------ ------------------------ ---------------- --------- ------------
Bancolombia Financials Colombia 0.1 1.4
------------------------ ------------------------ ---------------- --------- ------------
Reliance Industries Energy India 0.1 1.3
------------------------ ------------------------ ---------------- --------- ------------
Infraestructura
Energetica
Nova Utilities Mexico 0.1 1.3
------------------------ ------------------------ ---------------- --------- ------------
Telecommunication
Sarana Menara Services Indonesia 0.1 1.2
------------------------ ------------------------ ---------------- --------- ------------
Guangdong
Investment Utilities Hong Kong 0.1 1.2
------------------------ ------------------------ ---------------- --------- ------------
Hyundai Mobis Consumer Discretionary South Korea 0.0 1.2
------------------------ ------------------------ ---------------- --------- ------------
Grupo Financiero
Galicia Financials Argentina 0.0 1.1
------------------------ ------------------------ ---------------- --------- ------------
Gedeon Richter Health Care Hungary 0.0 1.1
------------------------ ------------------------ ---------------- --------- ------------
Enel Americas Utilities Chile 0.0 1.1
------------------------ ------------------------ ---------------- --------- ------------
Gudang Garam Consumer Staples Indonesia 0.0 1.1
------------------------ ------------------------ ---------------- --------- ------------
Pampa Energia Utilities Argentina 0.0 1.0
------------------------ ------------------------ ---------------- --------- ------------
Energisa Utilities Brazil 0.0 1.0
------------------------ ------------------------ ---------------- --------- ------------
TAESA Utilities Brazil 0.0 1.0
------------------------ ------------------------ ---------------- --------- ------------
Severstal Financials Russia 0.0 0.8
------------------------ ------------------------ ---------------- --------- ------------
Shinhan Financial Financials South Korea 0.0 0.8
------------------------ ------------------------ ---------------- --------- ------------
China Resources
Land Utilities Bermuda 0.0 0.8
------------------------ ------------------------ ---------------- --------- ------------
Qualicorp Health Care Brazil 0.0 0.8
------------------------ ------------------------ ---------------- --------- ------------
LUKOIL Energy Russia 0.0 0.6
------------------------ ------------------------ ---------------- --------- ------------
Rosneft Oil Energy Russia 0.0 0.6
------------------------ ------------------------ ---------------- --------- ------------
Hong Kong
and China
Gas Co Utilities Hong Kong 0.0 0.5
------------------------ ------------------------ ---------------- --------- ------------
TAV Havalimanlari Industrials Turkey 0.0 0.2
------------------------ ------------------------ ---------------- --------- ------------
100% Total Value
2,463.9
------------------------------------------------------------------ --------- ------------
Investment in operating subsidiary company as at 30 June 2017
Investment Region Value GBPm
------------------------ ---------------- -----------------
Alliance Trust Savings United Kingdom 61.5
------------------------ ---------------- -----------------
Total Value 61.5
----------------------------------------- -----------------
Non-core investments as at 30 June 2017
Investment Region Value GBPm
----------------------------------- ----------------------- ------------
Private Equity United Kingdom/Europe 97.0
Mineral Rights North America 14.1
Luxcellence Liontrust Sustainable
Future Pan-European Equity
Fund Luxembourg 79.1
Liontrust Sustainable Future
Cautious Managed Fund United Kingdom 12.7
Liontrust Sustainable Future
Defensive Managed Fund United Kingdom 12.4
Liontrust Asset Management
PLC United Kingdom 22.8
Other United Kingdom 0.1
----------------------------------- ----------------------- ------------
Total value
238.2
----------------------------------------------------------- ------------
Total investments as at 30 June 2017
Investment Value GBPm
------------------------- -------------
Equities 2,463.9
Investment in operating
subsidiary company 61.5
Non-core investments 238.2
------------------------- -------------
Total value
2,763.6
------------------------- -------------
Source: WTW.
A full portfolio listing, similar to that displayed above, is available on a monthly basis on our website at www.alliancetrust.co.uk
Other Information
Risks and Uncertainties
In order to achieve its investment objectives the Company invests in quoted securities and in its subsidiary business. It also has non-core investments in other asset classes and financial instruments. Its principal risks and uncertainties are therefore:
-- Market and Prudential - investment underperformance and liquidity -- Operational - change of investment manager and cyber attack -- Strategic - external factors and subsidiary underperformance -- Regulatory & Conduct - regulatory non-compliance
These risks, and the way in which they are managed, are described in more detail within the Risk section on pages 22 to 24 of the Annual Report for the year ended 31 December 2016, which is available on the Company's website at www.alliancetrust.co.uk.
The sale of Alliance Trust Investments completed during the period and, since 1 April 2017, the management of the Company's Operational and Regulatory & Conduct risks is now supported by WTW. Having transitioned to our new investment structure the risks associated with the change of investment manager have diminished.
The Board has considered the impact of Brexit and of the recent general election and believes that while these may lead to an element of market volatility, the global nature of the investments of the Company are such that neither of these factors are specifically believed to increase the risk of investment underperformance over the long term.
Related Party Transactions
In the period the Company repurchased 95,478,576 shares from Elliott International L.P., The Liverpool Limited Partnership and Elliott Associates L.P., at a discount of 4.75% to NAV at a total cost of GBP663m. There were no other transactions with related parties during the six months ended 30 June 2017 which have a material effect on the results or the financial position of the Company.
Buybacks
The share buyback programme was continued throughout the period, and accommodated the purchase of Elliott's 20% stake during March. As supply and demand has moved towards a state of equilibrium, share buybacks have reduced in number and scale during the second quarter of 2017.
Consolidation
The Annual Report for the year ended 31 December 2016 presented both Company only financial statements of the Company as well as consolidated Group financial statements consisting of the Company and its wholly owned subsidiary Alliance Trust Services Limited (ATSL). This was because the activities of ATSL were previously material to the Company, which is no longer the case given a cessation of the services provided due to the new investment approach. The Board has therefore decided that, on the basis of materiality, it is now appropriate to no longer prepare consolidated financial statements, and to now present the results of the Company on a Company only basis. This interim report presents prior period Company only results to ensure consistency. The Company continues to recognise its subsidiaries as investments at fair value through the income statement.
Going Concern Statement
The factors impacting on Going Concern are set out in detail on page 37 of the Annual Report for the year ended 31 December 2016.
As at 30 June 2017 there have been no significant changes to these factors. The Directors, who have reviewed budgets, forecasts and sensitivities, consider that the Company has adequate financial resources to enable it to continue in operational existence for the foreseeable future. Accordingly, the Directors believe it is appropriate to continue to adopt the going concern basis for preparing the financial statements.
Responsibility Statement
We confirm that to the best of our knowledge:
-- The condensed set of financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU;
-- The interim management report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure 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 year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period, and any changes in the related party transactions described in the last annual report that could do so.
Signed on behalf of the Board
Lord Smith of Kelvin Chairman 26 July 2017
Financial Statements
Income statement (unaudited)*
Year to
6 months to 6 months to 31 Dec 2016
30 June 2017 30 June 2016 (audited)
-------------------- ---- ------------------------- --------------------------- --------------------------
GBP000 Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
-------------------- ---- ------- ------- ------- ------- -------- -------- ------- ------- --------
Revenue
Income 3 37,473 -- 37,473 50,775 -- 50,775 84,783 - 84,783
Profit on fair
value designated
investments -- 298,595 298,595 -- 188,713 188,713 -- 591,755 591,755
Loss on fair
value of debt -- (2,000) (2,000) -- (12,670) (12,670) -- (9,800) (9,800)
-------------------- ---- ------- ------- ------- ------- -------- -------- ------- ------- --------
Total Revenue 37,473 296,595 334,068 50,775 176,043 226,818 84,783 581,955 666,738
Administrative
expenses (4,193) (4,225) (8,418) (3,861) (3,825) (7,686) (7,960) (8,810) (16,770)
Finance costs 4 (1,009) (2,024) (3,033) (1,381) (2,762) (4,143) (2,586) (5,107) (7,693)
Loss on revaluation
of office premises -- - - -- - - -- (40) (40)
Foreign exchange
gains/(loss) -- 6,807 6,807 -- 4,691 4,691 -- (2,527) (2,527)
-------------------- ---- ------- ------- ------- ------- -------- -------- ------- ------- --------
Profit before
tax 32,271 297,153 329,424 45,533 174,147 219,680 74,237 565,471 639,708 Tax 5 (2,850) - (2,850) (3,211) - (3,211) (8,367) (2,248) (10,615) -------------------- ---- ------- ------- ------- ------- -------- -------- ------- ------- -------- Profit for the period/year 29,421 297,153 326,574 42,322 174,147 216,469 65,870 563,223 629,093 -------------------- ---- ------- ------- ------- ------- -------- -------- ------- ------- -------- All profit for the period/year is attributable to equity holders. Earnings per share attributable to equity holders Basic (p per share) 7 7.78 78.54 86.32 8.20 33.73 41.93 12.77 109.23 122.00 Diluted (p per share) 7 7.77 78.43 86.20 8.18 33.68 41.86 12.76 109.06 121.82
Statement of comprehensive income (unaudited)*
Year to
6 months to 6 months to 31 Dec 2016
30 June 2017 30 June 2016 (audited)
--------------------- ---- ------------------------- --------------------------- ---------------------------
GBP000 Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
--------------------- ---- ------- ------- ------- ------- -------- -------- ------- -------- --------
Profit for the
period/year 29,421 297,153 326,574 42,322 174,147 216,469 65,870 563,223 629,093
--------------------- ---- ------- ------- ------- ------- -------- -------- ------- -------- --------
Items that will
not be reclassified
subsequently
to profit or
loss:
Defined benefit
plan net actuarial
loss and expenses 8 - (46) (46) - (26,112) (26,112) - (26,637) (26,637)
Retirement benefit
obligations
deferred tax - - - - - - - 4,478 4,478
--------------------- ---- ------- ------- ------- ------- -------- -------- ------- -------- --------
Other comprehensive
loss - (46) (46) - (26,112) (26,112) - (22,159) (22,159)
--------------------- ---- ------- ------- ------- ------- -------- -------- ------- -------- --------
Total comprehensive
income for the
period/year 29,421 297,107 326,528 42,322 148,035 190,357 65,870 541,064 606,934
--------------------- ---- ------- ------- ------- ------- -------- -------- ------- -------- --------
All total comprehensive income for the period/year is attributable to equity holders.
* The accounts are presented as Company only, see Note 2.
Statement of changes in equity (unaudited)*
Year to
6 months 6 months 31 Dec
to to 2016
30 June 30 June
GBP000 2017 2016 (audited)
---------------------------------------------- ---------- ---------- -----------
Called up share capital
At 1 January 12,319 13,160 13,160
Own shares purchased and
cancelled in the period/year (3,493) (285) (841)
---------------------------------------------- ---------- ---------- -----------
At 30 June / 31 December 8,826 12,875 12,319
---------------------------------------------- ---------- ---------- -----------
Capital reserves
At 1 January 2,508,359 2,163,026 2,163,026
Profit for the period/year 297,153 174,147 563,223
Defined benefit plan actuarial
loss (46) (26,112) (22,159)
Own shares purchased and
cancelled in the period/year (969,102) (56,171) (195,841)
Share based payments - 223 110
At 30 June / 31 December 1,836,364 2,255,113 2,508,359
---------------------------------------------- ---------- ---------- -----------
Merger reserve
---------------------------------------------- ---------- ---------- -----------
At 1 January, 30 June and
31 December 645,335 645,335 645,335
---------------------------------------------- ---------- ---------- -----------
Capital redemption reserve
At 1 January 6,679 5,838 5,838
Own shares purchased and
cancelled in the period/year 3,493 285 841
---------------------------------------------- ---------- ---------- -----------
At 30 June / 31 December 10,172 6,123 6,679
---------------------------------------------- ---------- ---------- -----------
Revenue reserve
At 1 January 111,450 111,921 111,921
Profit for the period/year 29,421 42,322 65,870
Dividends (25,176) (32,001) (66,329)
Unclaimed dividends (redistributed)/returned 66 (2) (12)
---------------------------------------------- ---------- ---------- -----------
At 30 June / 31 December 115,761 122,240 111,450
---------------------------------------------- ---------- ---------- -----------
Total equity
---------------------------------------------- ---------- ---------- -----------
At 1 January 3,284,142 2,939,280 2,939,280
---------------------------------------------- ---------- ---------- -----------
At 30 June / 31 December 2,616,458 3,041,686 3,284,142
---------------------------------------------- ---------- ---------- -----------
* The accounts are presented as Company only, see Note 2.
Balance sheet (unaudited)*
30 June 30 June 31 Dec
GBP000 Note 2017 2016 2016 (audited)
--------------------------------- ----- ---------- ---------- ----------------
Non--current assets
Investments held at fair
value 10 2,763,573 3,343,951 3,474,197
Property, plant and equipment:
Office premises 4,500 4,540 4,500
Other fixed assets - 29 24
Pension scheme surplus 8 38 235 83
Deferred tax asset 72 1,238 72
--------------------------------- ----- ---------- ---------- ----------------
2,768,183 3,349,993 3,478,876
Current assets
Outstanding settlements
and other receivables 14,111 42,535 9,821
Recoverable overseas tax 3,080 2,754 2,997
Cash and cash equivalents 103,134 41,458 49,430
--------------------------------- ----- ---------- ---------- ----------------
120,325 86,747 62,248
Total assets 2,888,508 3,436,740 3,541,124
Current liabilities
Outstanding settlements
and other payables (16,118) (68,057) (14,051)
Tax payable (3,991) (3,991) (3,991)
Bank loans 13 (131,000) (200,000) (120,000)
--------------------------------- ----- ---------- ---------- ----------------
(151,109) (272,048) (138,042)
Total assets less current
liabilities 2,737,399 3,164,692 3,403,082
Non--current liabilities
Unsecured fixed rate loan
notes 13 (120,800) (121,670) (118,800)
Deferred tax liability (72) (1,238) (72)
Amounts payable under
long term Investment Incentive
Plan (69) (98) (68)
(120,941) (123,006) (118,940)
Net assets 2,616,458 3,041,686 3,284,142
Equity
Share capital 14 8,826 12,875 12,319
Capital reserve 1,836,364 2,255,113 2,508,359
Merger reserve 645,335 645,335 645,335
Capital redemption reserve 10,172 6,123 6,679
Revenue reserve 115,761 122,240 111,450
Total Equity 2,616,458 3,041,686 3,284,142
All net assets are attributable to the equity holders.
* The accounts are presented as Company only, see Note 2.
Net asset value per ordinary share attributable to equity holders
Basic (GBP) 9 GBP7.42 GBP5.91 GBP6.67
Diluted (GBP) 9 GBP7.41 GBP5.91 GBP6.67
Cash flow statement (unaudited)* Year to
6 months 6 months 31 Dec
to to 2016
30 June 30 June
GBP000 2017 2016* (audited)
---------------------------------------------- ------------ ---------- ------------
Cash flows from operating activities
Profit before tax 329,424 219,680 639,708
Adjustments for:
Gains on investments (298,595) (188,713) (591,755)
Loss on fair value of debt 2,000 12,670 9,800
Foreign exchange (gain)/loss (6,807) (4,691) 2,527
Depreciation - (122) 57
Disposals and transfers of
fixed assets (20) - (174)
Loss on revaluation of offices
premises - - 40
Share based payment expense - 223 110
Finance costs 3,033 4,143 7,693
Movement in pension scheme
surplus (1) (19,465) (15,360)
Operating cash flows before
movements in working capital 29,034 23,725 52,646
Decrease/(Increase) in receivables 278 (7,528) (392)
(Decrease)/Increase in payables (4,650) 1,863 5,962
---------------------------------------------- ------------ ---------- ------------
Net cash (outflow)/inflow from
operating activities before
income tax 24,662 18,060 58,216
Taxes paid (2,933) (4,482) (12,129)
---------------------------------------------- ------------ ---------- ------------
Net cash inflow from operating
activities 21,729 13,578 46,087
Cash flows from investing activities
Proceeds on disposal at fair
value of investments through
profit and loss 5,948,159 586,168 1,481,435
Purchase of investments at
fair value through profit and
loss (4,936,674) (398,933) (1,054,086)
Disposal/(Purchase) of plant
and equipment 44 389 (6)
Disposal of other intangible
assets - 920 917
Proceeds on transfer of property,
plant and equipment to Group
companies - - 395
Net cash inflow from investing
activities 1,011,529 188,544 428,655
Cash flows from financing activities
Dividends paid -- Equity (25,176) (32,001) (66,329)
Unclaimed dividends (redistributed)/returned 66 (2) (12)
Purchase of own shares (969,102) (56,171) (195,841)
Bank loan drawdowns 11,000 - -
Repayment of borrowing - (90,000) (170,000)
Interest payable (3,149) (4,148) (7,570)
Net cash outflow from financing
activities (986,361) (182,322) (439,752)
Net increase in cash and cash
equivalents 46,897 19,800 34,990
Cash and cash equivalents at
beginning of period/year 49,430 16,967 16,967
Effect of foreign exchange
rate changes 6,807 4,691 (2,527)
---------------------------------------------- ------------ ---------- ------------
Cash and cash equivalents at
the end of period/year 103,134 41,458 49,430
* The accounts are presented as Company only, see Note 2.
1 General Information
The information contained in this report for the period ended 30 June 2017 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 December 2016 has been delivered to the Registrar of Companies. The auditor's report on those financial statements was prepared under s495 and s496 of the Companies Act 2006. The report was not qualified, did not contain an emphasis of matter paragraph and did not contain statements under section 498(2) or (3) of the Companies Act.
The interim results are unaudited. They should not be taken as a guide to the full year.
2 Accounting Policies Basis of preparation
The annual financial statements were prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted by the EU. The condensed set of financial statements included in this half yearly financial report have been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the EU.
The Annual Report for the year ended 31 December 2016 presented both Company only financial statements of the Company as well as consolidated Group financial statements consisting of the Company and its wholly owned subsidiary Alliance Trust Services Limited (ATSL).
This was because the activities of ATSL were previously material to the Company, which is no longer the case given a cessation of the services provided due to the new investment approach. The Board has therefore decided that, on the basis of materiality, it is now appropriate to no longer prepare consolidated financial statements, and to now present the results of the Company on a Company only basis. This interim report presents prior period Company only results to ensure consistency. The Company continues to recognise its subsidiaries as investments at fair value through the income statement.
Going concern
The Directors have a reasonable expectation that the Company has sufficient resources to continue in operational existence for the foreseeable future. Accordingly the financial statements have been prepared on a going concern basis.
Segmental reporting
The Company has identified a single operating segment, the investment trust, which aims to maximise shareholders returns. As such no segmental information has been included in these financial statements.
Application of accounting policies
The same accounting policies, presentations and methods of computation are followed in these financial statements as were applied in the Group's last annual audited financial statements with the exception of the changes that have been made to the basis of preparation.
Group Consolidation
The Company qualifies as an investment entity under IFRS 10 meeting all the key characteristics and as a result recognises its subsidiaries as investments at fair value through the income statement.
All subsidiaries within the Group are valued at fair value through the income statement as they do not provide services that relate directly to the investment activities of the Company or they are themselves regarded as an investment entity.
3 Income
6 months 6 months
to to
30 June 30 June Year to
GBP000 2017 2016 31 Dec 2016
---------------------------------------- ---------------- -------------- ---------------
Deposit interest 23 (1) 4
Dividend income 35,661 49,950 82,903
Mineral rights income 1,453 826 1,685
Property rental income 335 - -
Recharged costs 1 - 191
Total income 37,473 50,775 84,783
4 Finance Costs
6 months to 6 months to Year to 31 Dec
30 June 2017 30 June 2016 2016
--------------- ----------------------- ----------------------- ------------------------
GBP000 Revenue Capital Total Revenue Capital Total Revenue Capital Total
--------------- ------- ------- ----- ------- ------- ----- ------- -------- -----
Bank loans
and unsecured
fixed rate
loan notes 1,009 2,024 3,033 1,381 2,762 4,143 2,586 5,107 7,693
Total finance
costs 1,009 2,024 3,033 1,381 2,762 4,143 2,586 5,107 7,693
Finance costs include interest of GBP2.2m (GBP2.2m at 30 June 2016 and GBP4.3m at 31 December 2016) on the GBP100m 4.28% unsecured fixed rate loan notes which were drawn down in July 2014 for 15 years.
5 Taxation
UK corporation tax for the period to 30 June 2017 is calculated at the average rate of 19.3% (20.0% for the period to 30 June 2016) of the estimated assessable profits for the period. A reduction in the main rate of UK corporation tax to 19.3% was substantively enacted in April 2017. Taxation for overseas jurisdictions is calculated at the rates prevailing in the respective jurisdictions, such taxation mainly comprises withholding taxes levied on the investment returns generated on foreign investments such as overseas dividend income.
6 Dividends paid
6 months 6 months
to to Year to
30 June 30 June 31 Dec
GBP000 2017 2016 2016
-------------------------------- -------- -------- -------
Fourth interim dividend for the
year ended 31 December 2015 of
3.3725p per share - 17,473 17,473
First interim dividend for the
year ended 31 December 2016 of
2.8250p per share - 14,528 14,528
Second interim dividend for the
year ended 31 December 2016 of
2.8250p per share - - 14,528
Third interim dividend for the
year ended 31 December 2016 of
3.8500p per share - - 19,800
Fourth interim dividend for the
year ended 31 December 2016 of
3.2740p per share 13,507 - -
First interim dividend for the
year ended 31 December 2017 of
3.290p per share 11,669 - -
-------------------------------- -------- -------- -------
25,176 32,001 66,329
7 Earnings Per Share
From continuing operations
The calculation of the basic and diluted earnings per share is based on the following data:
6 months to 6 months to Year to 31 Dec
30 June 2017 30 June 2016 2016
-------------------- ------------------------- ------------------------- -------------------------
GBP000 Revenue Capital Total Revenue Capital Total Revenue Capital Total
-------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Ordinary shares
Earnings for
the purposes
of basic earnings
per share being
net profit
attributable
to equity holders
of the parent 29,421 297,153 326,574 42,322 174,147 216,469 65,870 563,223 629,093
Number of shares
Weighted average
number of ordinary
shares for
the purposes
of basic earnings
per share 378,350,366 516,332,453 515,646,212
Weighted average
number of ordinary
shares for
the purposes
of diluted
earnings per
share 378,870,625 517,100,606 516,414,688
The diluted figure is the weighted average of the entire number of shares in issue.
The weighted average number of ordinary shares is arrived at by excluding 456,886 (698,062 at 30 June 2016 and 698,062 at 31 December 2016) ordinary shares held by the Trustee of the Employee Benefit Trust.
IAS 33.41 requires that shares should only be treated as dilutive if they decrease earnings per share or increase the loss per share. The earnings per share figures on the income statement reflect this.
8 Pension Schemes
The Company sponsors two pension arrangements.
The Alliance Trust Companies' Pension Fund (the 'Scheme') is a funded defined benefit pension scheme which was closed to future accrual on 2 April 2011. On 31 May 2016 the Trustees of the Scheme purchased an annuity with Legal & General. The purpose of this transaction was to align the assets of the Scheme with long-term liabilities and to reduce risk on long-term liabilities.
Employees are entitled to receive contributions into their own Self Invested Personal Pension ('SIPP') provided by ATS.
Defined Benefit Scheme
The 2016 Annual Report contains disclosure of the funding and purchase of an annuity policy by the Trustees of the Scheme with Legal & General in May 2016 to match the Scheme's liabilities to its members. The Statement of Comprehensive Income for the period to June 2017 reports a defined benefit plan actuarial loss and expenses of GBP46,000 (30 June 2016 net actuarial loss of GBP26.1 million and 31 December 2016 net actuarial loss of GBP26.6 million). Given the purchase of the annuity policy the assets of the Scheme are matched to the long-term liability obligations and the actuarial loss represents the movement in the period on the Scheme bank account.
30 June 30 June 31 Dec
2017 2016 2016
----------------------------------- -------- -------- -------
% per % per % per
annum annum annum
----------------------------------- -------- -------- -------
Retail Price Index Inflation 3.60 3.30 3.65
Consumer Price Index Inflation 2.70 2.40 2.75
Rate of discount 2.55 3.25 2.70
Allowance for pension in payment
increases of RPI (subject to
a maximum increase of 5% p.a) 3.45 3.20 3.50
Allowance for revaluation of
deferred pensions of CPI (subject
to a maximum increase of 5% p.a) 2.70 2.40 2.75
9 Net Asset Value Per Ordinary Share
The calculation of the net asset value per ordinary share is based on the following:
30 June 30 June 31 Dec
2017 2016 2016
---------------------------------- ----------- ----------- -----------
Equity shareholder funds (GBP000) 2,616,458 3,041,686 3,284,142
Number of shares at period
end -- Basic 352,542,360 514,277,739 492,005,870
Number of shares at period
end -- Diluted 352,999,246 514,975,801 492,703,932
The number of ordinary shares has been reduced by 456,886 (698,062 at 30 June 2016 and 698,062 at 31 December 2016) ordinary shares held by the Trustee of the Employee Benefit Trust in order to arrive at the Basic figures above.
10 Hierarchical valuation of financial instruments
The Company refines and modifies its valuation techniques as markets develop. While the Company believes its valuation techniques to be appropriate and consistent with other market participants, the use of different methodologies or assumptions could result in different estimates of fair value at the balance sheet date.
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices)
Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
The following table analyses the fair value measurements for the Company's assets and liabilities measured by the level in the fair value hierarchy in which the fair value measurement is categorised at 30 June 2017. All fair value measurements disclosed are recurring fair value measurements.
Company valuation hierarchy fair value through income statement
As at 30 June 2017
Level Level Level
GBP000 1 2 3 Total
--------------------------- --------- ----- ------- ---------
Listed investments 2,590,883 - - 2,590,883
Foreign exchange contracts - (1) - (1)
Unlisted investments
Private Equity - - 96,959 96,959
Alliance Trust Savings - - 61,500 61,500
Mineral rights - - 14,109 14,109
Other - - 123 123
--------------------------- --------- ----- ------- ---------
2,590,883 (1) 172,691 2,763,573
As at 30 June 2016
Level Level Level
GBP000 1 2 3 Total
--------------------------- --------- ------ -------- ----------
Listed investments 3,124,036 - - 3,124,036
Foreign exchange contracts - 4,690 - 4,690
Unlisted investments
Private Equity - - 124,500 124,500
Alliance Trust Savings - - 54,000 54,000
Alliance Trust Investments - - 19,800 19,800
Alliance Trust Finance - - 720 720
Mineral rights - - 14,778 14,778
Other - - 1,427 1,427
--------------------------- --------- ------ -------- ----------
3,124,036 4,690 215,225 3,343,951
As at 31 Dec 2016
Level Level Level
GBP000 1 2 3 Total
--------------------------- --------- ------ -------- ----------
Listed investments 3,250,069 - - 3,250,069
Foreign exchange contracts - 6,853 - 6,853
Unlisted investments
Private Equity - - 113,007 113,007
Alliance Trust Savings - - 61,500 61,500
Alliance Trust Investments - - 28,276 28,276
Mineral rights - - 13,187 13,187
Other - - 1,305 1,305
--------------------------- --------- ------ -------- ----------
3,250,069 6,853 217,275 3,474,197
There have been no transfers during the year between Levels 1, 2 and 3.
Fair Value Assets in Level 1
The quoted market price used for financial investments held by the Company is the current bid price. These investments are included within Level 1 and comprise of equities, and derivatives.
Fair Value Assets in Level 2
The fair value of financial instruments that are not traded in an active market (for example, over--the--counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and with minimal reliance on entity specific estimates.
Fair Value Assets in Level 3
From 1 April 2017 Level 3 assets, excluding the valuation of Alliance Trust Savings (ATS), are reviewed at least annually by the Valuation Committee of Willis Towers Watson (WTW) who are assigned responsibility for valuation by the Board of the Company. Prior to this date valuation responsibility was assigned to the Valuation Committee of Alliance Trust Investments. The valuation of Alliance Trust Savings is reviewed at least annually by the Audit and Risk Committee with valuations recommended to the Board of the Company. The WTW Valuation Committee considers the appropriateness of the valuation models and inputs, using the various valuation methods in accordance with the Company's valuation policy. The WTW Valuation Committee will determine and advise the Board of the Company on the appropriateness of any valuation of the underlying assets.
The following table shows the reconciliation from the beginning balances to the ending balances for fair value measurement in Level 3 of the fair value hierarchy.
June
GBP000 June 17 16 Dec 16
----------------------------------- -------- --------- --------
Balance at 1 January 217,275 220,790 220,790
Net gain/(loss) from financial
instruments at fair value through
profit or loss 9,390 (17,304) 1,551
Purchases at cost 1,823 17,817 18,629
Sales proceeds (49,948) (9,187) (37,308)
Realised (gain)/loss on sale (5,849) 3,109 13,613
Balance at 30 June / 31 December 172,691 215,225 217,275
Investments in subsidiary companies (Level 3) are valued in the Company's accounts at GBP124.9m (GBP168.0m at 30 June 2016 and GBP169.8m at 31 December 2016) being the Directors' estimate of their fair value, using the guidelines and methodologies on valuation published by the International Private Equity and Venture Capital Association issued in December 2015 and where applicable external valuations. This includes a valuation of ATS at GBP61.5m (GBP54.0m at 30 June 2016 and GBP61.5m at 31 December 2016). This represents the Directors' view of the amount for which the subsidiary could be exchanged between knowledgeable willing parties in an arm's length transaction. This does not assume that the Company currently has any intention to sell the subsidiary in the future. The Directors have used several valuation methodologies as described in the guidelines to arrive at their best estimate of fair value, including discounted cash flow calculations, revenue and earnings multiples and recent market transactions where available. Alliance Trust Investments Limited (ATI), reported with a fair value of GBP28.3m as at 31 December 2016, was sold to Liontrust Asset Management PLC in April 2017 for consideration consisting of Liontrust ordinary shares, cash and contingent deferred consideration.
The Directors assessed the fair value of ATS. No change has been made to the fair valuation of ATS as at 30 June 2017. As part of the ongoing review of fair value, the Directors will assess the fair value of ATS prior to the year end.
The fair value of ATI as at 31 December 2016 the fair valuation of ATI was based on the value of the sale transaction to Liontrust Asset Management PLC. This valuation was based on the fair value of Liontrust shares used as consideration and the net asset value of ATI excluding any deferred contingent amounts. This transaction was concluded on 1 April 2017.
Mineral rights are carried at fair value and are valued in the Company's accounts at GBP14.1m (GBP14.8m at 30 June 2016, GBP13.2m at 31 December 2016) being the Directors' estimate of their fair value, using the guidelines and methodologies on valuation published by the Oklahoma Tax Commission and for non--producing properties, the Lierle US Price Report.
The table below details how an increase or decrease in the input variables would impact the valuation disclosed for the relevant Level 3 assets.
Fair
Value
at Input Change in
GBP000 June Valuation Unobservable sensitivity valuation
Investment 2017 Method inputs Input +/- +/-
--------------- ------ ------------------- ------------------- ----- ------------ -------------
Average of
Alliance discounted DCF Discount
Trust Savings 61.500 cash flow rate 12.5% 0.5% 3,800/(3,500)
Oklahoma Tax
Commission
multiples
and Lierle
US Price report Revenue
(for non producing multiple
Mineral Rights 14,109 properties). - gas 7 1 1,300/(1,300)
------------------- ------------------- ----- ------------ -------------
Revenue
multiple
- oil 4 1 700/(700)
------------------- ------------------- ----- ------------ -------------
Revenue
multiple
- 4 1 600/(600)
products/condensate
------------------- ----- ------------ -------------
Average
bonus 1 0.5 1,600/(1,600)
multiple
non producing
--------------- ------ ------------------- ------------------- ----- ------------ -------------
The change in valuation disclosed in the above table shows the direction an increase or decrease in the respective input variables would have on the valuation result. For ATS the Board has taken advice from an external valuer to apply a degree of independence and external challenge into the valuation. For mineral rights, an increase in the revenue multiple and average bonus multiple would lead to an increase in the estimated value.
Private equity investments, both fund--of--fund and direct, included under Level 3, are valued in accordance with the International Private Equity and Venture Capital Valuation Guidelines issued in December 2015. Unlisted investments in private equity are stated at the valuation as determined by the WTW Valuation Committee based on information provided by the General Partner. The General Partner's policy in valuing unlisted investments is to carry them at fair value. The General Partner will generally rely on the fund's investment manager's fair value at the last reported period, rolled forward for any cashflows. However, if the General Partner does not feel the manager is reflecting a fair value they will select a valuation methodology that is most appropriate for the particular investments in that fund and generate a fair value. In those circumstances the General Partner believes the most appropriate methodologies to use to value the underlying investments in the portfolio are: price of a recent investment, multiples, net assets, and industry valuation benchmarks. An entity is not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the entity when measuring fair value (for example, when an entity uses prices from prior transactions or third--party pricing information without adjustment). WTW receives information from the General Partner on the underlying investments which is subsequently reviewed by the WTW Valuation Committee. Where the WTW Valuation Committee does not feel that the valuation is appropriate, a recommendation of the appropriate fair value will be made to the Board of the Company.
No interrelationships between unobservable inputs used in the above valuations of Level 3 investments have been identified.
11 Financial Commitments
As at 30 June 2017 the Company had financial commitments, which have not been accrued, totaling GBP26.0m (GBP26.0m at 30 June 2016 and GBP28.5m at 31 December 2016). These amounts were in respect of uncalled subscriptions in investments structured as limited partnerships all of which relates to investments in our private equity portfolio. This is the maximum amount that the Company may be required to invest. These LP commitments, which can include recallable distributions received, may be called at any time up to an agreed contractual date. The Company may choose not to fulfil individual commitments but may suffer a penalty should it do so, the terms of which vary between investments.
The Company has provided letters of comfort in connection with banking facilities made available to certain of its subsidiaries. The Company provided letters to AT2006 and ATREP GP confirming ongoing support for at least 12 months from the date the annual financial statements were signed, to make sufficient funds available if needed to enable them to continue trading, meet commitments and not to seek repayment of any amounts outstanding.
The Company provides ongoing regulatory support for ATS in the context of its role as a consolidated bank holding company when required.
12 Share Based Payments
The Company operates three share based payment schemes. Full details of these schemes (Long term incentive plans (LTIP), Deferred bonus and All Employee Share Ownership Plan (AESOP)) are disclosed in the December 2016 Annual Report and financial statements and the basis of measuring fair value is consistent with that disclosed therein.
Long Term Incentive Plan ('LTIP')
Details of the LTIP awards are disclosed in the 2016 Annual Report.
The Company continues to operate the 2015 LTIP.
In the period ended 30 June 2017 no new awards were made and no Company shares were purchased (nil at 30 June 2016 and 31 December 2016). There was no charge to the Company income statement during the period in respect of LTIP awards (GBP213,000 at 30 June 2016 and GBP1,000 at 31 December 2016).
13 Bank loans and unsecured fixed rate loan notes
As at As at As at
30 June 30 June 31 Dec
GBP000 2017 2016 2016
------------------------------------ --------- --------- --------
Bank loans repayable within
one year 131,000 200,000 120,000
------------------------------------ --------- --------- --------
Analysis of borrowings by currency:
Bank loans -- Sterling 131,000 200,000 120,000
The weighted average % interest
rates payable:
Bank loans 0.97% 1.24% 0.96%
The Directors' estimate of
the fair value of the borrowings:
Bank loans 131,000 200,000 120,000
Unsecured fixed rate loan notes 120,800 121,670 118,800
------------------------------------ --------- --------- --------
The effective interest rates
payable:
Unsecured fixed rate loan notes 2.29% 2.33% 2.52%
GBP100m of unsecured fixed rate loan notes were drawn down in July 2014, over 15 years at 4.28%.The basis of the fair value estimate is disclosed in the Annual Report.
The total weighted average
% interest rates payable: 2.40% 2.25% 2.47%
14 Share Capital
As at As at As at
30 June 30 June 31 Dec
GBP000 2017 2016 2016
------------------------------- --------- ---------- --------
Allotted, called up and fully
paid:
352,999,246 (514,975,801 at
30 June 2016 and 492,703,932
at 31 December 2016) ordinary
shares of 2.5p each 8,826 12,875 12,319
Share Buybacks
As at As at As at
30 June 30 June 31 Dec
GBP000 2017 2016 2016
------------------------------- --------- ---------- --------
Ordinary shares of 2.5p each
Opening share capital 12,319 13,160 13,160
Share buybacks (3,493) (285) (841)
------------------------------- --------- ---------- --------
Closing share capital 8,826 12,875 12,319
The Interim Report and Accounts will be available on the Company's website www.alliancetrust.co.uk later today.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LFFILDIIRFID
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July 27, 2017 02:02 ET (06:02 GMT)
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