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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bankers Investment Trust Plc | LSE:BNKR | London | Ordinary Share | GB00BN4NDR39 | ORD 2.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2.20 | 2.00% | 112.00 | 111.20 | 111.80 | 111.60 | 111.00 | 111.00 | 1,701,137 | 16:35:22 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Unit Inv Tr, Closed-end Mgmt | 68.02M | 64.56M | 0.0492 | 22.68 | 1.47B |
From Apr 2022 to Apr 2024
TIDMBNKR
RNS Number : 1800Q
Bankers Investment Trust PLC
24 June 2022
LEGAL ENTITY IDENTIFIER: 213800B9YWXL3X1VMZ69 24 June 2022
THE BANKERS INVESTMENT TRUST PLC
('the Company')
Unaudited results for the half-year ended 30 April 2022
This announcement contains regulated information
INVESTMENT OBJECTIVE
Over the long term, the Company aims to achieve capital growth in excess of the FTSE World Index and dividend growth greater than inflation, as measured by the UK Consumer Price Index ('CPI'), by investing in companies listed throughout the world.
INVESTMENT POLICY
The following investment ranges apply:
-- Equities: 80% to 100% -- Debt securities and cash investments: 0% to 20% -- Investment trusts, collective funds and derivatives: 0% to 15%
To achieve an appropriate spread of investment risk the portfolio is broadly diversified by geography, sector and company. The Manager ('Janus Henderson') has the flexibility to invest in any geographic region and any sector with no set limits on individual country or sector exposures and, therefore, the make-up and weighting of the portfolio may differ materially from the FTSE World Index.
The Manager primarily employs a bottom-up stock picking investment process, across six regional portfolios, to identify suitable opportunities. While each regional portfolio manager employs their own investment style, they all pay particular regard to cash generation and dividend growth over the medium term.
The Company can, but normally does not, invest up to 15% of its gross assets in any other investment companies (including listed investment trusts).
Derivatives
The Company may use financial instruments known as derivatives for the purpose of efficient portfolio management while maintaining a level of risk consistent with the risk profile of the Company.
Gearing
The Company can borrow to make additional investments with the aim of achieving a return that is greater than the cost of the borrowing. The Company can borrow up to 20% of net assets at the time of draw down.
PERFORMANCE HIGHLIGHTS
Hot Features
Premium
30 April
30 April 2022 2021
------------------------------------------ --------------- ---------
Net asset value ('NAV') per share 113.0p 114.3p
Share price 105.9p 114.2p
Revenue return per share 1.08p 0.97p
Dividends paid or declared in respect of
the period (1) 1.128p 1.076p
Total return performance to 30 April 2022 (including dividends reinvested and excluding transaction costs)
6 months 1 year 3 years 5 years 10 years
% % % % %
----------------- --------- ------- -------- ----------- ---------
NAV (2) -5.6 0.8 29.6 58.2 205.4
Index (3) -2.6 6.1 40.6 66.6 164.2
Share price (4) -6.3 -5.6 24.2 53.9 226.2
1 The first interim dividend for 2022 was paid on 31 May 2022; the second interim dividend has been declared and will be paid on 31 August 2022
2 Net asset value total return per share with income reinvested and with debt at par
3 Composite of FTSE All-Share Index for the period to 31 October 2017 and FTSE World Index from 1 November 2017 to 30 April 2022
4 Share price total return using mid-market closing price
Sources: Janus Henderson, Morningstar Direct and Refinitiv Datastream
INTERIM MANAGEMENT REPORT
Review
In February I became Chair and I look forward to working with the Board and the Investment Manager, and to meeting many of our shareholders over the coming years. Founded in 1888, Bankers has a distinguished history. It has experienced a variety of financial and economic crises as well as, of course, its share of bull markets. Its strength has been its ability to adapt to changing circumstances and to grow. I have been involved in the investment trust sector for 30 years and Bankers struck me as interesting for a variety of reasons. First it is an old established and substantial trust. Second it has a sound record on both income and capital growth. Third it is unique in the way in which it manages separate portfolios under the same roof. As a result, it has the ability to appeal to a wide range of investors.
We have entered a more uncertain period for markets, with inflationary pressures everywhere and interest rates being raised to counter price demand for goods and services. Over the six months ended 30 April 2022, the NAV total return was -5.6% and the share price total return was -6.3%, both underperforming the FTSE World Index total return of -2.6%. The underperformance was due to mixed performance from stock selection in various regional sleeves combined with weakness in Asia, particularly China. The accompanying Fund Manager's Report contains more information together with a useful market commentary.
Dividends
The Company's income has continued to recover this year and our investment income for the six months ended 30 April 2022 was GBP17.8 million compared to GBP15.6 million for the same period last year, an increase of 14.1%. This increase reflects continued dividend growth, the strengthening US dollar and a resumption in dividends from the few remaining companies who suspended dividends. Our net revenue for the six months was GBP14.2 million (2021: GBP12.6 million), equivalent to 1.08p per share (2021: 0.97p).
A first interim dividend of 0.55p per share (2021: 0.538p) was paid on 31 May 2022. The Board has declared a second interim dividend of 0.578p (2021: 0.538p) per share, which will be payable on 31 August 2022 to shareholders on the register on 29 July 2022.
The Company aims over the long-term to grow dividends in excess of inflation, as measured by the UK Consumer Price Index ('CPI'). This year has seen the highest level of CPI inflation in a generation and while it will not be possible to grow our payments in line with inflation this year, Bankers' long-term record is healthy. Over the past 10 years, to 31 October 2021, dividends have grown by 71% compared to a 20% increase in CPI. The improving outlook for our investment income combined with the revenue reserve leads us to increase our forecast for dividend growth for the current financial year, from at least 3% to at least 5%.
Share buy-backs
The market uncertainty has led to the Company's shares trading at a discount which has offered an opportunity to buy back shares from the market. This activity is beneficial to ongoing shareholders, as shares are only purchased below net asset value. A total of 4,243,874 shares were bought back at an average discount of 6% to the net asset value in the six months ended 30 April 2022 (30 April 2021: nil), for a total consideration of GBP4.5 million. The discount at 30 April 2022 was 6.3% (2021: 0.1%). Since the period end, a further 4,256,126 shares have been bought back, for a total consideration of GBP4.3 million.
There have been no share issues in the financial year to date.
The Board and Investment Manager
Sue Inglis stepped down from the Board at the Annual General Meeting in February 2022, after nine years on the Board and three years as Chair. I should like to thank her on behalf of the Board for her outstanding contribution. The Board will miss her deep knowledge, experience and understanding of the investment trust world. The search for a new non-executive director has begun and will conclude before the end of the year.
A change in Chair allows the Board to reflect on the operation of the Company. The timing of this is prescient, given the market volatility. In the Board's view there is no requirement to alter our long-term objectives but rather there are opportunities to tighten up the way in which the Company operates, communicates and attracts new investors.
As part of this process the Company's Manager, Janus Henderson, has decided to appoint Mike Kerley as deputy to Alex Crooke. This appointment recognises the size and importance of the Company to Janus Henderson and the provision of this additional resource is welcomed by the Board. Mike has been in the investment management business for 37 years and he has been managing the Bankers' Pacific (ex Japan and China) portfolio since 2006. To support Mike with his portfolio role, Sat Duhra will co-manage the Pacific portfolio. Sat joined Janus Henderson in 2011 and has over 22 years of experience in financial markets. We are fortunate to have access to such experienced and knowledgeable investment professionals within Janus Henderson.
Outlook
Events this past year were impossible to predict. The rapid economic recovery from Covid restrictions created rising demand when there were still supply bottlenecks of goods. The war in the Ukraine places further restrictions on the provision of energy and food supplies. There are some parallels to the economic conditions in the 1970's and 80's but, as is often the case, there are also key differences. Activity will slow this year but market share prices are adjusting to this outturn and, with the banking sector and corporates well capitalised, there should be a solid foundation to rebuild investors' confidence.
Simon Miller
Chair
24 June 2022
FUND MANAGER'S REPORT
Market review
The highest level of price inflation for over 30 years and potential central bank reactions have dominated markets throughout the past half year under review. The reasons for inflation touching 10% in the UK are manyfold but stem from disruption to both labour movement and supply chains throughout the Covid lockdowns. Goods price inflation has been compounded by rising service prices and, more recently, energy and food prices following the invasion of Ukraine. The equity markets have fallen in value since the end of December, with inflation proving far from transitory as central banks assured investors last year. Historically, such levels of inflation would provoke central banks to raise interest rates rapidly to curtail demand and bring prices back down but investors fear that the increase in rates has been too slow.
Longer term bond yields have also risen over the period, signalling unusual conditions where both bonds and equities have fallen in value. Essentially, market prices are signalling that central banks will not contain inflation quickly and that it is increasingly likely that a recession will follow. Growth equities, especially technology companies, have been especially hard hit, while energy and other defensive sectors such as utilities and healthcare have been relatively better performers. Ironically, corporate profits are proving resilient and are even rising, but the market valuation of those earnings by investors has been derated because of their cautious outlook. Typically, markets derate stocks well ahead of actual earnings falling.
The most resilient stock market has been the UK which has risen in value over the period under review. This has less to do with the strength of the UK economy but rather the high weighting of oil and mining companies and those with large overseas earnings within the market. The US dollar has appreciated by almost 9% over the period against sterling reflecting a flight to quality and the expectation that the Federal Reserve will raise interest rates quicker than the UK. The remaining major markets, the US, Japan and Europe have broadly fallen by the same amount in local currencies, approximately 10% but in sterling terms the US has delivered the better underlying return despite the sell-off in technology shares. China has been a notable laggard in terms of market performance as the policy of zero Covid cases in the community is having a detrimental impact on economic growth. It is proving challenging to understand when this policy will be overturned.
Performance
Overall, the portfolio has lagged the FTSE World Index by 3% which is largely attributable to a lower exposure to the US market and the poor performance of the China portfolio. There has also been underperformance in the US and European portfolios that has impacted the return, as both of these portfolios have a significantly higher weight to growth stocks which have derated in current market conditions. The UK and Asian portfolios have delivered performance ahead of their respective benchmarks attributable to good stock picking and the more value based, cash generative and dividend emphasis of the respective managers. Higher yielding stocks have been a noticeable outperformer in Asian markets this year. Unusually, quality as a factor in stock selection has performed poorly during this period which emphasises how macroeconomic events have driven stock market returns rather than fundamentals.
The portfolio's income has continued to recover with almost all companies reinstating dividends that were withheld through Covid restrictions. The banking and consumer services sectors were the last to return to normal patterns of dividend payments. The challenging economic outlook combined with many companies facing rising labour and input inflation is likely to limit further dividend growth this year. Similarly, the receipt of special dividends is trending lower than last year.
Outlook
While we desperately hope that there will be an end to the conflict in Ukraine, it is clear that energy and food prices are likely to be elevated for some time to come as supply shortages persist. While there is a real risk that economic activity contracts in Europe and elsewhere, purely through demand falling as consumers pay more for basic goods and services, shares are already pricing in a slowing growth outlook. The resilience of the UK stock market should continue despite the uncertainty stemming from UK politics. US interest rates are forecast to rise to over 2% by December, which will have a cooling effect on the US economy, but we still expect US growth to remain positive and therefore US corporate earnings to grow this year. Stock markets will remain volatile until there is a clear downward direction in inflationary pressures and investors can gain confidence in stock valuations.
Alex Crooke
Fund Manager
24 June 2022
MANAGING OUR RISKS
The principal risks and uncertainties associated with the Company's
business are divided into the following main areas:
-- Investment Activity and Performance Risks
-- Portfolio and Market Risks
-- Tax, Legal and Regulatory Risks
-- Financial Risks
-- Operational and Cyber Risks
-- Risks associated with Climate Change
Information on these risks and uncertainties and how they are managed
are given in the Annual Report for the year ended 31 October 2021. However,
risks associated with the global Covid pandemic and other health emergencies
are now considered within Portfolio and Market Risks, a grouping which
has been extended to cover risks relating to heightened political and
military tensions and inflationary pressures. Following a recent review,
the Board believes that these principal risks and uncertainties are
as applicable to the remaining six months of the financial year as they
were to the six months under review.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors (listed in note 15) confirm that, to the best of their
knowledge:
(a) the unaudited condensed set of financial statements has been
prepared in accordance with IAS 34 - Interim Financial Reporting
('IAS 34') and gives a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company as required
by Disclosure Guidance and Transparency Rule 4.2.4R;
(b) the interim management report includes a fair review of the
information required by Disclosure Guidance and Transparency
Rule 4.2.7R (indication of important events during the first
six months and description of principal risks and uncertainties
for the remaining six months of the year); and
(c) the interim management report includes a fair review of the
information required by Disclosure Guidance and Transparency
Rule 4.2.8R (disclosure of 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 the performance of the Company during the period; and any
changes in related party transactions described in the latest
annual report that could have an impact in the first six months
of the current financial year).
On behalf of the Board
Simon Miller
Chair
24 June 2022
For further information contact:
Alex Crooke Simon Miller Fund Manager Chair The Bankers Investment Trust PLC The Bankers Investment Trust PLC Telephone: 020 7818 4447 Telephone: 020 7818 4233 Dan Howe Harriet Hall Deputy Head of Investment Trusts PR Manager, Investment Trusts Janus Henderson Investors Janus Henderson Investors Telephone: 020 7818 4458 Telephone: 020 7818 2636
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
30 April 2022 30 April 2021 31 October 2021
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ----------- ------------- ---------- ----------- ------------ ---------- ---------- ---------- ----------
(Losses)/gains
on investments
held at fair
value
through profit
or loss - (100,441) (100,441) - 220,218 220,218 - 308,991 308,991
Investment
income 17,822 - 17,822 15,610 - 15,610 34,939 - 34,939
Other operating
income 62 - 62 53 - 53 88 - 88
--------- ----------- --------- --------- --------- --------- --------- --------- ---------
Gross revenue
and capital
(losses)/gains 17,884 (100,441) (82,557) 15,663 220,218 235,881 35,027 308,991 344,018
---------- ------------ --------- ---------- ----------- --------- --------- --------- ---------
Expenses
Management fees
(note 2) (992) (2,314) (3,306) (880) (2,055) (2,935) (1,843) (4,300) (6,143)
Other expenses (687) - (687) (535) - (535) (1,074) - (1,074)
--------- ----------- --------- --------- --------- --------- --------- --------- ---------
Profit/(loss)
before finance
costs and
taxation 16,205 (102,755) (86,550) 14,248 218,163 232,411 32,110 304,691 336,801
Finance costs (695) (1,550) (2,245) (454) (1,058) (1,512) (1,037) (2,423) (3,460)
--------- ------------ --------- --------- ---------- --------- --------- --------- ---------
Profit/(loss)
before taxation 15,510 (104,305) (88,795) 13,794 217,105 230,899 31,073 302,268 333,341
Taxation (1,337) - (1,337) (1,232) - (1,232) (2,705) - (2,705)
--------- ------------ --------- --------- ----------- --------- --------- --------- ---------
Profit/(loss)
for the period 14,173 (104,305) (90,132) 12,562 217,105 229,667 28,368 302,268 330,636
===== ======= ===== ===== ======= ===== ===== ===== =====
Earnings/(loss)
per ordinary
share
(note 3) 1.08p (7.95)p (6.87)p 0.97p 16.70p 17.67p 2.17p 23.13p 25.30p
===== ====== ====== ===== ======= ===== ===== ===== =====
The total columns of this statement represent the Statement of Comprehensive Income, prepared in accordance with UK adopted international accounting standards. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.
All income is attributable to the equity shareholders of The Bankers Investment Trust PLC.
The accompanying condensed notes are an integral part of the financial statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called
up Share Capital Other
share premium redemption capital Revenue
Half-year ended 30 April capital account reserve reserves reserve Total
2022 (Unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ----------- ------------ -------------- ----------- ---------------
Total equity at 1 November
2021 32,827 159,797 12,540 1,343,631 38,589 1,587,384
Buy-back of shares into
treasury 2021 (note 5) 51 - (51) - - -
---------- ---------- ---------- ------------- ---------- --------------
Total equity at 1 November
2021 32,878 159,797 12,489 1,343,631 38,589 1,587,384
Total comprehensive income:
(Loss)/profit for the
period - - - (104,305) 14,173 (90,132)
Transactions with owners,
recorded
directly to equity:
Buy-back of shares to
treasury - - - (4,533) - (4,533)
Ordinary dividends paid - - - - (14,289) (14,289)
---------- ---------- ---------- ------------- ---------- --------------
Total equity at 30 April
2022 32,878 159,797 12,489 1,234,793 38,473 1,478,430
====== ====== ====== ======== ====== ========
Called
up Share Capital Other
share premium redemption capital Revenue
Half-year ended 30 April capital account reserve reserves reserve Total
2021 (Unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ----------- ------------ -------------- ----------- ---------------
Total equity at 1 November
2020 32,289 134,125 12,489 1,043,682 38,386 1,260,971
Total comprehensive income:
Profit for the period - - - 217,105 12,562 229,667
Transactions with owners,
recorded
directly to equity:
Issue of new shares 471 20,580 - - - 21,051
Share issue costs - (190) - - - (190)
Costs relating to sub-division
of shares - - - (45) - (45)
Ordinary dividends paid - - - - (14,043) (14,043)
---------- ---------- ---------- ------------- ---------- --------------
Total equity at 30 April
2021 32,760 154,515 12,489 1,260,742 36,905 1,497,411
====== ====== ====== ======== ====== ========
Called
up Share Capital Other
share premium redemption capital Revenue
Year ended 31 October capital account reserve reserves reserve Total
2021 (Audited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ----------- ------------ -------------- ----------- ---------------
Total equity at 1 November
2020 32,289 134,125 12,489 1,043,682 38,386 1,260,971
Total comprehensive income:
Profit for the year - - - 302,268 28,368 330,636
Transactions with owners,
recorded directly to equity:
Buy-back of shares to
treasury (51) - 51 (2,274) - (2,274)
Issue of new shares 589 25,862 - - - 26,451
Share issue costs - (190) - - - (190)
Costs relating to sub-division
of shares - - - (45) - (45)
Ordinary dividends paid - - - - (28,165) (28,165)
---------- ---------- ----------- ------------- ---------- -------------
Total equity at 31 October
2021 32,827 159,797 12,540 1,343,631 38,589 1,587,384
====== ====== ====== ======== ====== ========
The accompanying condensed notes are an integral part of the financial statements.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
As at 30 As at 30 As at 31
April April October
2022 2021 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Investments held at fair value through
profit or loss 1,575,875 1,534,028 1,692,169
------------- ------------- -------------
Current assets
Investments held at fair value through
profit or loss (note 4) 1 4,230 8,598
Other receivables 7,241 6,042 3,621
Cash and cash equivalents 39,458 21,202 25,429
------------ ------------ ------------
46,700 31,474 37,648
------------- ------------- -------------
Total assets 1,622,575 1,565,502 1,729,817
------------- ------------- -------------
Current liabilities
Other payables (5,649) (3,255) (3,750)
------------- ------------- ------------
Total assets less current liabilities 1,616,926 1,562,247 1,726,067
Non-current liabilities
Debenture stock (15,000) (15,000) (15,000)
Unsecured loan notes (123,496) (49,836) (123,683)
------------- ------------- --------------
Net assets 1,478,430 1,497,411 1,587,384
======== ======== ========
Equity attributable to equity shareholders
Share capital (note 5) 32,878 32,760 32,827
Share premium account 159,797 154,515 159,797
Capital redemption reserve 12,489 12,489 12,540
Retained earnings:
Other capital reserves 1,234,793 1,260,742 1,343,631
Revenue reserve 38,473 36,905 38,589
------------ ------------ -------------
Total equity 1,478,430 1,497,411 1,587,384
======= ======= =======
Net asset value per ordinary share (note
6) 113.0p 114.3p 120.9p
======= ======= =======
The accompanying condensed notes are an integral part of the financial statements.
CONDENSED CASH FLOW STATEMENT
(Unaudited) (Unaudited)
Half-year Half-year (Audited)
ended ended Year ended
Reconciliation of profit before taxation 30 April 30 April 31 October
to net cash flow from operating activities 2022 2021 2021
GBP'000 GBP'000 GBP'000
Operating activities
(Loss)/profit before taxation (88,795) 230,899 333,341
Add back: interest payable ('finance costs') 2,245 1,512 3,460
Losses/(gains) on investments held at fair
value through profit or loss 100,441 (220,218) (308,991)
(Increase)/decrease in accrued income (2,769) (2,261) 42
(Increase)/decrease in other receivables (76) (54) 2
Increase in other payables 117 61 374
Purchases of investments (179,198) (330,735) (614,490)
Sales of investments 195,164 263,779 478,300
Purchases of current asset investments (17,498) (33,066) (67,151)
Sales of current asset investments 26,095 53,606 83,323
Increase in securities sold for future settlement (662) (214) -
Increase in securities purchased for future
settlement 1,807 208 -
------------ ------------ ------------
Net cash inflow/(outflow) from operating
activities before interest and taxation 36,871 (36,483) (91,790)
Interest paid (2,456) (1,512) (3,072)
Taxation on investment income (1,451) (1,479) (3,103)
------------ ------------ ------------
Net cash inflow/(outflow) from operating
activities 32,964 (39,474) (97,965)
======= ======= =======
Financing activities
Equity dividends paid (net of refund of unclaimed
distributions) (14,289) (14,043) (28,165)
Issue of loan notes (net of issue costs) - - 74,232
Cash relating to sub-division of shares - (45) (45)
Share issue proceeds - 21,051 26,451
Share issue costs - (190) (190)
Share buy-backs (4,533) - (2,274)
------------ ------------ ------------
Net cash (outflow)/inflow from financing
activities (18,822) 6,773 70,009
======= ======= =======
Increase/(decrease) in cash 14,142 (32,701) (27,956)
Cash and cash equivalents at start of period 25,429 54,221 54,221
Exchange movements (113) (318) (836)
----------- ----------- ------------
Cash and cash equivalents at end of period 39,458 21,202 25,429
======= ======= =======
The accompanying condensed notes are an integral part of the financial statements.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS:
Accounting policies
1.
The Bankers Investment Trust PLC ('the Company') is a company incorporated
and domiciled in the United Kingdom under the Companies Act 2006.
These condensed financial statements comprise the unaudited results
of the Company for the half-year ended 30 April 2022. They have been
prepared on a going concern basis and in accordance with UK adopted
international accounting standards and with the Statement of Recommended
Practice for Investment Trusts ('SORP') dated April 2021, where the
SORP is consistent with the requirements of UK adopted international
accounting standards.
For the period under review, the Company's accounting policies have
not varied from those described in the annual report for the year ended
31 October 2021.
These financial statements have not been either audited or reviewed
by the Company's Auditor.
Management fees
2.
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
30 April 2022 30 April 2021 31 October 2021
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Investment
management 992 2,314 3,306 880 2,055 2,935 1,843 4,300 6,143
===== ===== ==== ===== ===== ===== ===== ===== ====
With effect from 1 November 2021 the management fee is charged at a
rate of 0.45% per annum on the first GBP750 million of net assets,
0.40% per annum on net assets in excess of GBP750 million up to GBP1.5
billion and 0.35% of net assets in excess of GBP1.5 billion. For the
purposes of the fee calculation, the net assets are as at the last
day of the quarter immediately preceding the quarter in which the calculation
is made.
Up to 31 October 2021 the management fee was calculated on a quarterly
basis as the aggregate of 0.45% per annum of the first GBP750 million
and 0.40% per annum on the excess over GBP750 million of the value
of the net assets on the last day of the quarter immediately preceding
the quarter in respect of which the calculation was made.
Earnings per ordinary share
3.
The earnings per ordinary share figure is based on the net loss for
the half-year of GBP90,132,000 (30 April 2021: net profit of GBP229,667,000;
31 October 2021: net profit of GBP330,636,000) and on 1,312,859,609
(30 April 2021: 1,300,003,244; 31 October 2021: 1,306,988,584) ordinary
shares, being the weighted average number of ordinary shares in issue
excluding treasury shares during the period.
The return per share detailed above can be further analysed between
revenue and capital, as below.
(Unaudited)
Half-year (Unaudited) (Audited)
ended Half-year Year ended
30 April ended 31 October
2022 30 April 2021 2021
GBP'000 GBP'000 GBP'000
---------------------------------------------- -------------------- -------------------- --------------------
Revenue profit 14,173 12,562 28,368
Capital (loss)/profit (104,305) 217,105 302,268
------------ ------------ ------------
Total (loss)/profit (90,132) 229,667 330,636
======= ======= =======
Weighted average number of ordinary
shares in issue during each period 1,312,859,609 1,300,003,244 1,306,988,584
Revenue earnings per ordinary share 1.08p 0.97p 2.17p
Capital (loss)/earnings per ordinary
share (7.95)p 16.70p 23.13p
------------ ------------ ------------
Total (loss)/earnings per ordinary
share (6.87)p 17.67p 25.30p
======= ======= =======
Current asset investment
4.
The Company has a holding in the Deutsche Bank Global Liquidity Series
Fund, a money market fund which is viewed as a readily disposable store
of value and which is used to invest cash balances that would otherwise
be placed on short-term deposit. At 30 April 2022 this holding had
a value of GBP1,000 (30 April 2021: GBP4,230,000;
31 October 2021: GBP8,598,000).
Share capital
5.
At 30 April 2022 there were 1,315,102,830 ordinary shares of 2.5p each
in issue of which 6,275,628 were held in treasury (with no voting rights)
(30 April 2021: 1,310,402,830 and no shares held in treasury; 31 October
2021: 1,315,102,830 of which 2,031,754 shares were held in treasury).
During the half-year ended 30 April 2022, 4,243,874 shares were bought
back into treasury at a total cost of GBP4,533,000 (30 April 2021:
975,000 shares were issued prior to the 10 for 1 share split and 13,775,000,
following the 10 for 1 share split for proceeds of GBP26,261,000 and
2,031,754 shares were bought back into treasury for a net payment of
GBP2,274,000. Since the period end, the Company has bought back 4,256,126
new shares for a total cost of GBP4,335,000.
The nominal value of the share buy-backs which were held in treasury
during the year to 31 October 2021 was transferred to the capital redemption
reserve but should have remained in share capital. This transfer has
been reversed in the current period.
Net asset value per ordinary share
6.
The net asset value per ordinary share is based on the net assets attributable
to equity shareholders of GBP1,478,430,000 (30 April 2021: GBP1,497,411,000;
31 October 2021: GBP1,587,384,000) and on 1,308,827,202 (30 April 2021:
1,310,402,830; 31 October 2021: 1,313,071,076) ordinary shares, being
the number of ordinary shares in issue with voting rights at the period
end.
Bank loan
7.
At 30 April 2022, the Company had drawn down GBPnil (30 April 2021
and 31 October 2021: GBPnil) of its GBP20 million multi-currency loan
facility with SMBC Bank International plc.
Related party transactions
8.
The Company's transactions with related parties during the period were
with its Directors and Janus Henderson. There have been no material
transactions between the Company and its Directors during the period
other than the amounts paid to them in respect of Directors' remuneration
for which there were no outstanding amounts payable at the period end.
In relation to the provision of services by Janus Henderson, other
than fees payable by the Company in the ordinary course of business
and the provision of sales and marketing services, there have been
no transactions with Janus Henderson affecting the financial position
or performance of the Company during the period under review.
Financial instruments
9.
At the period end the carrying value of financial assets approximates
their fair value.
Financial instruments carried at fair value
Fair value hierarchy
The debenture stock and unsecured loan notes are valued at par in the
Statement of Financial Position. The fair value of the 8% debenture
stock at 30 April 2022 was GBP16,211,000 (30 April 2021: GBP18,018,000;
31 October 2021: GBP17,537,000). The fair value of the debenture stock
has been calculated using prices quoted on the exchange on which the
instrument trades and is categorised as Level 1 as described below.
In order to comply with fair value accounting disclosures only, the
fair value of the loan notes at 30 April 2022 have been estimated to
be GBP114,900,000 (30 April 2021: GBP58,785,000; 31 October 2021: GBP134,199,000)
and is categorised as Level 3 in the fair value hierarchy as described
below. However, for the purpose of the daily NAV announcements, the
unsecured loan notes are valued at amortised cost in the fair value
NAV because they are not traded and the Directors expect them to be
held to maturity and, accordingly, the Directors have assessed that
this is the most appropriate value to be applied for this purpose.
The following table analyses recurring fair value measurements for
financial assets. These fair value measurements are categorised into
different levels in the fair value hierarchy based on the inputs to
valuation techniques used.
Financial assets at fair value through Level Level
profit or loss at Level 2 3 Total
30 April 2022 (Unaudited) 1 GBP'000 GBP'000 GBP'000 GBP'000
Investments including derivatives:
- Equity investments 1,575,874 - - 1,575,874
- Fixed interest investments - - 1 1
- Current asset investments 1 - - 1
-------------- --------- -------- --------------
Total financial assets carried at
fair value 1,575,875 - 1 1,575,876
======== ===== ==== ========
Financial assets at fair value through Level 1 Level Level 3 Total
profit or loss at GBP'000 2 GBP'000 GBP'000
30 April 2021 (Unaudited) GBP'000
Investments including derivatives:
- Equity investments 1,534,027 - - 1,534,027
- Fixed interest investments - - 1 1
- Current asset investments 4,230 - - 4,230
------------- --------- -------- --------------
Total financial assets carried at
fair value 1,538,257 - 1 1,538,258
======== ===== ==== ========
Financial assets at fair value through Level Level
profit or loss at 1 2 Level 3 Total
31 October 2021 (Audited) GBP'000 GBP'000 GBP'000 GBP'000
Investments including derivatives:
- Equity investments 1,692,168 - - 1,692,168
- Fixed interest investments - - 1 1
- Current asset investments 8,598 - - 8,598
------------- ---------- --------- -------------
Total financial assets carried at
fair value 1,700,766 - 1 1,700,767
========== ====== ==== =======
(Unaudited) (Unaudited)
Half-year Half-year
ended ended (Audited)
30 April 30 April 2021 Year ended
Level 3 investments at fair value 2022 GBP'000 31 October 2021
through profit or loss GBP'000 GBP'000
----------------------------------- ------------ --------------- -----------------
Opening balance 1 3 3
Disposal proceeds - (2) (2)
------- ------- -------
Closing balance 1 1 1
==== ==== ====
Reconciliation of liabilities arising from financing activities
10.
Non-cash changes
At Amortisation At
1 November Cash of issue Foreign 30 April
2021 flows costs exchange 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ------------ ----------------- ----------- ---------------
Financing activities
Financing liabilities 138,683 - 11 (198) 138,496
----------- -------- -------- --------- ------------
Closing liabilities
from financing
activities 138,683 - 11 (198) 138,496
======= ==== ==== ===== =======
Non-cash changes
At Amortisation At
1 November Cash of issue Foreign 30 April
2020 flows costs exchange 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------------- ------------ ----------------- ----------- ---------------
Financing activities
Financing liabilities 64,832 - 4 - 64,836
---------- -------- -------- --------- ------------
Closing liabilities
from financing
activities 64,832 - 4 - 64,836
====== ==== ==== ===== ======
Non-cash changes
At Amortisation At
1 November Cash of issue Foreign 31 October
2020 flows costs exchange 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------------- ------------ ----------------- ----------- ---------------
Financing activities
Financing liabilities 64,832 74,232 13 (394) 138,683
---------- --------- -------- --------- ------------
Closing liabilities
from financing
activities 64,832 74,232 13 (394) 138,683
====== ===== ==== ===== ======
Going concern
11.
In assessing the Company's going concern, the Directors have considered
among other things, cash flow forecasts, a review of covenant compliance
including the headroom above the most restrictive covenants, an assessment
of the liquidity of the portfolio and the impact of Covid-19. The assets
of the Company consist mainly of securities that are listed and readily
realisable. Thus, after making due enquiry, the Directors believe that
the Company has adequate financial resources to meet its financial obligations,
including the repayment of any borrowings, and to continue in operational
existence for at least 12 months from the date of approval of the financial
statements. Accordingly, the Directors continue to adopt the going concern
basis in preparing the financial statements.
12. Dividends
A first interim dividend of 0.55p (2021: 0.538p) per ordinary share, was paid on 31 May 2022
to shareholders registered on 29 April 2022. The shares were quoted ex-dividend on 28 April
2022. Based on the number of ordinary shares in issue at 30 April 2022 (excluding shares held
in treasury) of 1,308,827,202 the cost of this dividend was GBP7,199,000.
The Directors have declared a second interim dividend of 0.578p (2021: 0.538p) per ordinary
share which will be payable on 31 August 2022 to shareholders on the register on 29 July 2022.
The shares will be quoted ex-dividend on 28 July 2022. Based on the number of shares in issue
excluding shares held in treasury at 24 June 2022 of 1,304,571,076 the cost of this dividend
will be GBP7,540,000.
13. Comparative information
The financial information contained in this half-year report does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The financial information for
the half-years ended 30 April 2022 and 2021 have not been audited or reviewed by the Auditor.
The figures and financial information for the year ended 31 October 2021 have been extracted
from the latest published financial statements of the Company. These financial statements
have been delivered to the Registrar of Companies and included the report of the Auditor which
was unqualified and did not contain a statement under either section 498(2) or 498(3) of the
Companies Act 2006.
A glossary of terms and details of alternative performance measures can be found in the Annual
Report for the year ended 31 October 2021.
14. Half-year report
The half-year report is available on the Company's website (www.bankersinvestmenttrust.com)
or in hard copy from the Company's registered office. An abbreviated version of this half-year
report, the 'update', will be circulated to shareholders in early July 2022.
15. General information
Company Status
The Company is a UK domiciled investment trust company.
London Stock Exchange Daily Official List (SEDOL): BN4NDR3 / ISIN number: GB00BN4NDR39
London Stock Exchange (TIDM) Code: BNKR
New Zealand Stock Exchange Code: BIT
Global Intermediary Identification Number (GIIN): L5YVFP.99999.SL.826
Legal Entity Identifier (LEI): 213800B9YWXL3X1VMZ69
Registered Office
UK: 201 Bishopsgate, London EC2M 3AE.
Company Registration Number
UK: 00026351
NZ: 645360
Directors
The Directors of the Company are Simon Miller (Chair), Julian Chillingworth (Senior Independent
Director),
Isobel Sharp (Audit Committee Chair) and Richard West.
Corporate Secretary
Janus Henderson Secretarial Services UK Limited, represented by Wendy King FCG.
Website
Details of the Company's share price and net asset value, together with general information
about the Company, monthly factsheets and data, copies of announcements, reports and details
of general meetings can be found at www.bankersinvestmenttrust.com .
50 Largest Investments
At 30 April 2022
Rank Valuation Valuation
30 Rank 31 Oct Sales Appreciation/ 30 Apr
Apr 31 Oct 2021 Purchases proceeds (depreciation) 2022
2022 2021 Company Country GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
1 2 American Express US 34,616 - - 3,386 38,002
2 1 Microsoft US 46,870 - (5,506) (4,217) 37,147
3 4 CME US 30,852 - - 2,678 33,530
Automatic
4 5 Data US 29,085 - - 1,777 30,862
5 21 Roper Technologies US 18,630 9,620 - 1,846 30,096
6 9 Otis Worldwide US 25,547 5,047 - (539) 30,055
7 11 Union Pacific US 24,456 2,967 - 1,449 28,872
8 6 American Tower US 28,797 - - (1,881) 26,916
9 16 AstraZeneca UK 21,880 - - 3,838 25,718
10 # Oracle US - 24,963 - 730 25,693
11 13 Visa US 22,418 - - 2,188 24,606
12 7 Home Depot US 27,220 - - (3,201) 24,019
Estée
13 3 Lauder US 31,924 - (5,030) (3,028) 23,866
Intercontinental
14 10 Exchange US 25,072 - - (2,171) 22,901
15 17 MasterCard US 21,732 - (2,848) 3,399 22,283
16 19 Diageo UK 19,733 - (315) 2,092 21,510
17 14 Sherwin-Williams US 22,082 - - (1,162) 20,920
Thermo Fisher
18 34 Scientific US 14,326 7,129 - (591) 20,864
19 12 Moody's US 23,309 - - (3,381) 19,928
20 8 Intuit US 26,526 - - (7,149) 19,377
21 15 Alphabet US 22,024 - - (3,412) 18,612
22 22 Toyota Motor Japan 17,305 - - 1,244 18,549
23 39 Roche Switzerland 12,289 5,064 - 935 18,288
24 20 Zoetis US 19,578 - - (2,060) 17,518
25 24 RELX UK 16,544 - - 935 17,479
Rank Valuation Valuation
30 Rank 31 Oct Sales Appreciation/ 30 Apr
Apr 31 Oct 2021 Purchases proceeds (depreciation) 2022
2022 2021 Company Country GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------ -------- ------------------- ------------ ---------- ---------- ---------- ---------------- -----------
26 27 Reckitt Benckiser UK 15,378 - - 812 16,190
British American
27 46 Tobacco UK 11,157 - - 3,526 14,683
28 23 ICON US 16,947 - - (2,335) 14,612
29 35 Nestlé Switzerland 13,607 - - 983 14,590
30 26 Lloyds Banking UK 15,495 - - (1,339) 14,156
31 # Anglo American UK 10,619 - - 3,067 13,686
32 40 Compass UK 12,136 - - 1,194 13,330
33 30 Novo-Nordisk Denmark 14,986 - (3,346) 1,615 13,255
34 # Total Energies France 9,791 2,328 - 914 13,033
35 42 Bunzl UK 11,582 - (316) 1,700 12,966
36 # Rio Tinto UK 10,353 - - 2,600 12,953
Macquarie
37 41 Bank Australia 12,050 - - 876 12,926
38 29 Sony Japan 15,086 - - (2,670) 12,416
39 # Sanofi France 10,235 - - 1,689 11,924
Taiwan
Semiconductor
40 37 Manufacturing Taiwan 13,339 - - (1,433) 11,906
41 18 Apple US 21,083 - (12,426) 3,059 11,716
42 36 DSM Netherlands 13,568 - - (2,100) 11,468
43 45 OZ Minerals Australia 11,233 - - 185 11,418
44 43 3i UK 11,481 - - (332) 11,149
45 # RWE Germany 9,194 - - 1,713 10,907
The Cooper
46 44 Companies US 11,304 - - (620) 10,684
47 # Daiichi Sankyo Japan 9,170 493 - 953 10,616
48 # KPN Netherlands 8,386 - - 2,208 10,594
49 28 Bawag Austria 15,301 - (2,401) (2,408) 10,492
50 # Tokio Marine Japan 10,260 - (1,228) 1,309 10,341
---------- ---------- ---------- ---------------- -----------
896,556 57,611 (33,416) 8,871 929,622
---------- ---------- ---------- ---------------- -----------
All securities are equity investments
# Not in top 50 at 31 October 2021
Convertibles and all classes of equity in any one company are treated as one investment
GEOGRAPHICAL DISTRIBUTION Valuation of investments
30 April 2022 31 October 2021
% %
---------------------------------- ----------------- ------------------
UK 19.7 18.1
Europe (ex UK) 16.6 18.8
North America 35.7 35.4
Japan 11.8 11.8
Pacific (ex Japan and China) 10.5 10.0
China 5.7 5.9
--------- ---------
100.0 100.0
===== =====
Source: Janus Henderson
REVENUE GENERATED
30 April 2022 30 April 2021
GBPmillion GBPmillion
---------------------------------- ----------------- ------------------
UK 6.1 5.6
Europe (ex UK) 4.0 3.4
North America 3.4 2.3
Japan 2.1 2.1
Pacific (ex Japan and China) 2.2 2.0
China - 0.2
--------- ---------
17.8 15.6
===== =====
Source: Janus Henderson
SECTOR ANALYSIS
As a percentage of the investment portfolio excluding cash
30 April 2022 31 October 2021
% %
----------------- ------------------
Industrials 19.3 18.8
Financials 18.9 19.4
Consumer Discretionary 14.5 16.9
Technology 14.5 15.6
Health Care 10.7 9.4
Consumer Staples 8.0 7.2
Basic Materials 4.4 4.6
Telecommunications 3.3 3.1
Real Estate 3.0 2.5
Energy 1.8 1.0
Utilities 1.6 1.5
--------- ---------
100.0 100.0
===== =====
Source: Janus Henderson
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) are incorporated into, or forms part of,
this announcement.
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