Share Name Share Symbol Market Type Share ISIN Share Description
British & American Investment Trust Plc LSE:BAF London Ordinary Share GB0000653112 ORD SHS #1
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 35.50 32.00 39.00 37.00 35.50 35.50 1,579 08:00:16
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 1.4 0.9 2.2 15.9 9

British & American Annual Financial Report

27/05/2021 11:09am

UK Regulatory (RNS & others)

British & American Investment Trust PLC 
Annual Financial Report 
for the year ended 31 December 2020 
Registered number: 00433137 
Directors                                                         Registered office 
David G Seligman (Chairman)                                       Wessex House 
Jonathan C Woolf (Managing Director)                              1 Chesham Street 
Dominic G Dreyfus (Non-executive and Chairman of the Audit        Telephone: 020 7201 
Committee)                                                        3100 
Alex Tamlyn (Non-executive)                                       Registered in 
                                                                  27 May 2021 
This is the Annual Financial Report as required to be published under DTR 4 of 
the UKLA Listing Rules. 
Financial Highlights 
For the year ended 31 December 2020 
                             2020                             2019 
                                Revenue    Capital      Total    Revenue    Capital         Total 
                                 return     return                return     return 
                                   £000       £000       £000       £000       £000          £000 
Profit/(loss) before tax -          879    (1,230)      (351)        862    (1,461)         (599) 
Profit before tax -                   -      1,388      1,388          -      1,657         1,657 
                             __________ __________ __________ __________ __________    __________ 
Profit before tax - total           879        158      1,037        862        196         1,058 
                             __________ __________ __________ __________ __________    __________ 
Earnings per £1 ordinary 
share - basic                     2.23p      0.63p      2.86p      2.26p      0.78p         3.04p 
                             __________ __________ __________ __________ __________    __________ 
Earnings per £1 ordinary 
share - diluted                   2.59p      0.45p      3.04p      2.61p      0.56p         3.17p 
                             __________  _________ __________ __________  _________    __________ 
Net assets                                              6,720                               6,504 
                                                   __________                          __________ 
Net assets per ordinary 
- deducting preference 
shares                                                    19p                                 19p 
    at fully diluted net 
asset value* 
                                                   __________                          __________ 
- diluted                                                 19p                                 19p 
                                                   __________                          __________ 
Diluted net asset value per                               21p 
ordinary share at 21 May 
Dividends declared or 
proposed for the period: 
per ordinary share 
- interim paid                                           2.7p                                2.7p 
- final proposed                                         0.0p                                0.0p 
per preference share                                    1.75p                               1.75p 
Dividends declared after the 
per ordinary share - 1st                                 2.7p 
per preference share                                    1.75p 
1st interim dividend declared for the year ended 31 December 2021 of 2.7 pence 
per ordinary share payable on 24 June 2021 to shareholders on the register at 
11 June 2021. A preference dividend of 1.75 pence will be paid to preference 
shareholders on the same date. 
*Basic net assets are calculated using a value of fully diluted net asset value 
for the preference shares. 
Chairman's Statement 
I report our results for the year ended 31 December 2020.  As announced on 22nd 
April, we have delayed the release of these results by one month in accordance 
with the current guidance of the Financial Conduct Authority (FCA) and the 
Financial Reporting Council (FRC) concerning the reporting by listed companies 
of their results in the context of the ongoing Covid-19 pandemic. 
Our interim results to 30th June 2020 were reported on a delayed basis at the 
end of October 2020 and at the time we explained in some detail the how the 
Covid-19 pandemic was impacting our operations in various ways, including in 
terms of the corporate reporting timetable, disruption to general business 
activity, markets, investment valuations and dividends. 
The return on the revenue account before tax amounted to £0.9 million (2019: £ 
0.9 million), unchanged from 2019 but a significantly lower level from prior 
years when higher levels of dividends from external investments were being 
received.  In 2020, dividend income was severely impacted by the Covid-19 
pandemic as companies cut or skipped payments altogether; however, this impact 
was partially reduced by dividends received from our subsidiary companies 
during the year. 
Gross revenues totalled £1.4 million (2019: £1.2 million). In addition, film 
income of £84,000 (2019: £106,000) and property unit trust income of £14,000 
(2019: £14,000) was received in our subsidiary companies. In accordance with 
IFRS10, these income streams are not included within the revenue figures noted 
The total return before tax amounted to a profit of £1.0 million (2019: £1.1 
million profit), which comprised net revenue of £0.9 million, a realised loss 
of £1.2 million and an unrealised gain of £1.3 million. The revenue return per 
ordinary share was 2.2p (2019: 2.3p) on an undiluted basis and 2.6p (2019: 
2.6p) on a diluted basis. 
Net Assets and Performance 
Net assets at the year end were £6.7 million (2019: £6.5 million), an increase 
of 3.3 percent, after payment of £0.9 million in dividends to shareholders 
during the year. This compares to decreases in the FTSE 100 and All Share 
indices of 14.3 percent and 12.5 percent, respectively, over the period. On a 
total return basis, after adding back dividends paid during the year, our net 
assets increased by 16.4 percent compared to decreases of 11.5 percent and 9.8 
percent in the FTSE 100 and All Share indices, respectively. 
This substantial outperformance in total return of 25 percent against the 
benchmark indices was principally the result of gains of 12 percent in sterling 
terms in the value of our largest US investment, Geron Corporation, and of 90 
percent in our second largest US investment, Lineage Cell Therapeutics Inc (a 
combination of two previously held regenerative medicine stem cell companies, 
Biotime Inc and Asterias Biotherapeutics Inc).  By contrast, our UK stock 
investments declined in line with the widespread falls in the UK market due to 
the unprecedented effects the Covid-19 pandemic felt throughout the year. 
More generally, the economic shock of the Covid-19 pandemic completely 
overshadowed all other considerations in 2020. In our last report in October, 
we described in some detail the nature and extent of the damage which the 
pandemic had caused globally to a vast array of activities worldwide. These 
included corporate activity and profits, employment levels, working practices, 
basic social interactions, GDP, government debt, economic stimulus measures and 
interest rates. 
At that time, the first wave of the pandemic had passed through most countries 
and a second winter wave whose likely effect was not fully known was expected. 
As reported, equity markets had begun to recover by the summer from the 
precipitous declines of the first quarter and by the year end the US market had 
regained its year-opening level, while in the UK almost half of the 35 percent 
drop in March had been retraced. 
The effect of the lockdowns in the first half on GDP was severe, with falls of 
23 percent in the UK and 35 percent in the USA being recorded. As the economies 
began to be opened up in the summer, these falls were reduced to 10 percent and 
4 percent for the year as a whole, respectively. These are nevertheless 
extremely large declines which have never before been experienced in peacetime 
and in the UK not for 300 years. As a result, similarly unprecedented effects 
were seen on other major economic metrics such as government borrowing and 
levels of debt as governments introduced unprecedented measures to support 
their citizenry and businesses. In the UK, total government borrowing jumped by 
300 percent to £300 billion and debt rose to over £2 trillion, representing 100 
percent of GDP, the highest level since the Second World War. 
When it arrived at year-end, the winter wave of the pandemic, which was 
augmented by more virulent variants of the virus, turned out to be even more 
disruptive than the first wave with a series of lockdowns being imposed in most 
developed countries. Numbers of infections and deaths spiked in the UK in the 
first quarter of 2021 at levels considerably higher than in the first wave in 
2020. Despite this, the periods of reopening in the second half of 2020, a 
better understanding of how to manage the virus and the implementation of a 
highly successful vaccination programme have allowed the UK economy to avoid 
the damage of a double dip recession which supported equity markets through to 
the New Year. 
Due to the unprecedented disruption caused to markets by the Covid-19 pandemic 
in 2020 and the severe decline in dividends paid by companies last year, we do 
not recommend the payment of a final dividend for the 2020 financial year. 
We do, however, intend to pay a first interim dividend of 2.70 pence per 
ordinary share for the year to 31st December 2021, payable on 24th June, which 
is approximately the date on which a final dividend would have been paid. This 
is to take account of the timing of income receipts this year into our 
distributable reserves. 
When added to the dividend of 2.70 pence paid in December 2020, this represents 
a yield of approximately 18 percent on the ordinary share price averaged over a 
period of 12 months. 
Although we have regrettably not been able to continue for the time being the 
policy of progressive dividend payments which we had followed for many years, 
this level of yield has nevertheless sustained significant market interest in 
our stock in recent months, with the shares trading at a significant premium to 
NAV and higher than average daily volumes being seen. 
As noted in last year's annual report, it is our intention to resume our normal 
dividend payments as soon as possible, as and when circumstances permit. We 
will also endeavour, through ad hoc interim payments not necessarily on our 
normal dividend timetable, to catch up when and if possible on withheld or 
reduced payments. 
Recent events and outlook 
Despite the severity of the winter phase of the pandemic during the first 
quarter of 2021, equity markets in the USA and UK have risen steadily this 
year, building on the positive momentum which followed the election of 
President Biden in November, with the US market pulling steadily ahead of the 
record high achieved in December 2020. For some time now, markets have been 
looking forward to the economic recovery expected as the pandemic wanes and 
lockdowns or restrictions are finally lifted or reduced. Company profits are 
beginning to grow again and a very large retail savings balance has been built 
up over the past year, ready to be spent when restrictions are lifted. 
While the near term prospects for markets and businesses appear favourable, 
therefore, this may only be temporary until the longer term damage caused by 
the pandemic in terms of permanently lost GDP and jobs becomes evident. While a 
strong bounce in GDP is still forecast for 2021 despite the considerably longer 
than expected duration of the pandemic, economic activity is unlikely to return 
to its pre-2020 levels until 2022 and will not account for the lost production 
in the meantime.  Also, long term damage to jobs which for the time being has 
been disguised by governments' emergency support schemes is likely to become 
evident later in the year as these schemes are withdrawn. 
For these reasons and their resulting effects on other important economic 
indicators such as government deficits, borrowing levels, interest rates and 
inflation, the medium term outlook for markets and investment looks very 
Having trimmed some of our general sterling based investments over the last two 
years which we do not expect to replace in the foreseeable future, our 
portfolio has become more focused on our US biopharma investments which do not 
tend to track general market movements and which we believe hold significant 
investment promise as they progress steadily towards commercialisation of their 
ground-breaking and valuable technologies. 
As at 21 May 2021, our net assets had increased to £7.4 million, an increase of 
9.6 percent since the beginning of the calendar year. This is equivalent to 
21.0 pence per share (prior charges deducted at fully diluted value) and 21.0 
pence per share on a diluted basis. Over the same period the FTSE 100 increased 
8.6 percent and the All Share Index increased 9.0 percent. 
David Seligman 
27 May 2021 
Managing Director's report 
As reported above, equity markets in the USA and UK rebounded strongly by the 
end of 2020 following precipitous drops at the end of the first quarter as 
economies were shut down to combat the Covid-19 pandemic. In the USA, the 
market rose 65 percent from its lows in March, regaining its year opening level 
by September and reaching an all time high by year end, returning the market to 
its 12 year bull run since the financial crisis of 2008/9. 
US equity prices have continued to push forward strongly into 2021 following 
the election of President Biden and the passing in Congress of his 
multi-trillion dollar "American Rescue" and "American Family" plans to support 
businesses and citizens out of the economic crisis caused by the pandemic. 
Continued substantial and long-term monetary support from the Federal Reserve 
through ultra-low interest rates and quantitative easing programmes have also 
underpinned equities.  Added to which, the rapid acceleration of the highly 
successful vaccine programme in the first quarter has paved the way for a 
re-opening of the economy with a major boost to corporate investment and retail 
Consequently, equities look set to benefit for some time from a return to 
normal activity, with the only major cloud on the horizon being the risk of 
growing inflation indications leading to an earlier than expected end to the 
highly accommodative monetary policy of recent years, which had been extended 
over the past year by the pandemic. Recent comments from the new Secretary of 
Finance, Janet Yellen, who used to be Federal Reserve Chairman did in fact 
refer to just such an eventuality. As has been seen many times, long-term bull 
markets based on monetary stimulus can react quite suddenly and violently to 
even the discussion of such pivot points in interest rate trends, as was 
notably the case in 2013 with the 'taper tantrum' in the bond markets when US 
treasury yields surged abruptly. In recent months, yields in the US bond market 
have also risen out of concern at the enormous government spending commitments 
of the recovery plans and usually such movements eventually result in equity 
market weakness as bond and equity yields rebalance, particularly so given the 
continuing lower levels of dividends being paid by companies. This result may 
take longer than usual to appear under current circumstances as the pent up 
post-pandemic demand in the economy is released and the stimulus of the 
administration's 'Build Back Better' infrastructure investment programme washes 
through the economy. However, higher levels of equity market volatility in 
recent weeks could presage the beginning of this process. 
In the UK, the equity market followed a similar pattern in 2020, although it 
did not enjoy a similar level of rebound from the March lows, regaining only 50 
percent of its 35 percent drop by the third quarter and ending the year down by 
14 percent. The market had drifted down during the second half as discussions 
with the EU on a post Brexit trade agreement remained unresolved and then the 
prospect of a second winter lockdown loomed as post-summer Covid-19 infection 
rates began to rise considerably. It was not until November that this steady 
decline reversed, rallying by 15 percent following the election of President 
Biden and the strongly positive response shown by the US equities. 
Since the year end, the UK market has risen a further 10 percent, an increase 
of 35 percent since its 2020 low and now just 6 percent below its 2020 high. 
The highly effective and world-beating vaccine rollout of the last few months, 
resulting in substantially lower levels of Covid-19 infections, 
hospitalisations and deaths has significantly boosted confidence of a gradual 
return to normality and equity markets have reacted accordingly. Businesses, 
particularly in the travel and retail sectors, are also preparing for 
substantially higher levels of activity in the months to come as the high 
levels of savings built up over the past year are expected to be drawn down in 
a retail spending boom. 
Comments made above in relation to the medium term prospects for equities in 
the USA are likely to apply also to the UK. The question for the medium term, 
assuming the virus is kept under control through vaccinations, is how the 
various balances in returning the economy and business to normal will play out 
over the coming years. The sizeable pent up demand and relief will boost 
business activity significantly in the short term and UK GDP is now thought 
likely to return to pre-pandemic levels somewhat earlier than expected. 
However, pressure will be put on prices, as is already beginning to be seen in 
the USA, presaging a return to more normal levels of interest rates which would 
be negative for equities. 
At the same time, however, as the government removes its emergency support and 
stimulus measures later in the year, the true extent of the damage wreaked by 
the pandemic over the last year on businesses and employment is likely to be 
revealed, placing downward pressure on the economy and sentiment. Further such 
pressure is also likely to arrive in the form of additional taxes yet to be 
announced to repair the historically high levels of deficit and debt run up by 
the government to combat the pandemic. As in the USA, however, the UK 
government has a long term programme of infrastructure renewal and investment, 
in the UK's case its 'Levelling up' programme, which should add substantial 
stimulus to the economy as a whole.  This may be sufficient over the medium 
term to counterbalance the permanently lost growth of the past 18 months due to 
the pandemic. Thus, an overall picture of short-term strength in equity markets 
followed by a period of retrenchment and weakness can realistically be 
As noted above, our portfolio strongly outperformed the benchmarks in 2020, 
primarily due to our long term investments in US biotech stocks, despite a 
headwind presented by a weaker US dollar over the year. 
In the case of Geron, the ongoing recovery in Geron's share price reflected the 
company's efforts to demonstrate that its clinical oncology drug programme 
remains on track with ever improving results. During 2020, a number of positive 
developments occurred, including the announcement of FDA agreement for a second 
Phase 3 trial in Myelofibrosis (MF), which has now commenced enrolment, to add 
to its continuing Phase 3 trial in Myelodysplastic Syndrome (MDS) and the 
completion of a $140 million equity fundraising in which leading biotech sector 
investment funds took large positions. In addition, over the past year, further 
high level technical personnel hires have been made from leading pharma 
companies, including from previous partner Johnson & Johnson, accompanied by 
the award of substantial new employee inducement shares, which are an 
indication of the confidence such new employees have in Geron's future 
In the case of Lineage Cell Therapeutics Inc, our second largest US 
biotechnology investment, its share price has now risen by over 200 percent 
since the beginning of 2020, recovering to its pre-2019 levels when it combined 
with our previously third largest biotechnology investment, Asterias 
Biotherapeutics Inc, both being stem cell based regenerative medicine 
companies.  At the same time, it spun off a third smaller company, Agex 
Therapeutics Inc, in which we remain invested. The market has re-rated this 
stock following the re-organisation and favourable Phase 2 clinical trial 
results which have improved the prospects for its two principal stem cell 
programmes. The first in spinal cord injury repair which was acquired with 
Asterias Biotherapeutics and the second, its own trial in Dry AMD, a widespread 
degenerative condition of the retina causing blindness with no currently 
approved or effective treatment. 
Jonathan Woolf 
27 May 2021 
Income statement 
For the year ended 31 December 2020 
                               2020                       2019 
                                Revenue  Capital    Total  Revenue  Capital    Total 
                                 return   return            return   return 
                                  £ 000    £ 000    £ 000    £ 000    £ 000    £ 000 
Investment income (note 2)        1,372        -    1,372    1,243        -    1,243 
Holding gains on investments               1,388    1,388             1,657    1,657 
at fair value through profit          -                          - 
or loss 
Losses on disposal of 
investments at fair value             -    (960)    (960)        -  (1,113)  (1,113) 
through profit or loss* 
Foreign exchange (losses)/         (44)     (13)     (57)       53     (57)      (4) 
Expenses                          (400)    (242)    (642)    (381)    (242)    (623) 
                               ________ ________ ________ ________ ________ ________ 
Profit before finance costs         928  173        1,101      915  245        1,160 
and tax 
Finance costs                      (49)     (15)     (64)     (53)     (49)    (102) 
                               ________ ________ ________ ________ ________ ________ 
Profit before tax                   879      158    1,037      862      196    1,058 
Tax                                  29        -       29       52        -       52 
                               ________ ________ ________ ________ ________ ________ 
Profit for the year                 908      158    1,066      914      196    1,110 
                               ________ ________ ________ ________ ________ ________ 
Earnings per share 
Basic - ordinary shares           2.23p    0.63p    2.86p    2.26p    0.78p    3.04p 
                               ________ ________ ________ ________ ________ ________ 
Diluted - ordinary shares         2.59p    0.45p    3.04p    2.61p    0.56p    3.17p 
                               ________ ________ ________ ________ ________ ________ 
The company does not have any income or expense that is not included in the 
profit for the year. Accordingly, the 'Profit for the year' is also the 'Total 
Comprehensive Income for the year' as defined in IAS 1 (revised) and no 
separate Statement of Comprehensive Income has been presented. 
The total column of this statement represents the Income Statement, prepared in 
accordance with IFRS. The supplementary revenue return and capital return 
columns are both prepared under guidance published by the Association of 
Investment Companies. All items in the above statement derive from continuing 
All profit and total comprehensive income is attributable to the equity holders 
of the company. 
*Losses on disposal of investments at fair value through profit or loss include 
Losses on sales of £613,000 (2019 - £1,274,000 losses) and Losses on provision 
for liabilities and charges of £347,000 (2019 - £161,000 gains). 
Statement of changes in equity 
For the year ended 31 December 2020 
                                           Share    Capital  Retained Total 
                                           capital  reserve  earnings 
                                              £ 000    £ 000    £ 000    £ 000 
Balance at 31 December 2018                  35,000 (28,802)    1,721    7,919 
Changes in equity for 2019 
Profit for the period                             -      196      914    1,110 
Ordinary dividend paid (note 4)                   -        -  (2,175)  (2,175) 
Preference dividend paid (note 4)                 -        -    (350)    (350) 
                                           ________ ________ ________ ________ 
Balance at 31 December 2019                  35,000 (28,606)      110    6,504 
Changes in equity for 2020 
Profit for the period                             -      158      908    1,066 
Ordinary dividend paid (note 4)                   -        -    (675)    (675) 
Preference dividend paid (note 4)                 -        -    (175)    (175) 
                                           ________ ________ ________ ________ 
Balance at 31 December 2020                  35,000 (28,448)      168    6,720 
                                           ________ ________ ________ ________ 
Registered number: 00433137 
Balance Sheet 
At 31 December 2020 
                                                     2020           2019 
                                                     £ 000          £ 000 
Non-current assets 
Investments - fair value through                              6,436          6,704 
profit or loss 
Subsidiaries - fair value through                             5,719          5,335 
profit or loss 
                                                         __________     __________ 
                                                             12,155         12,039 
Current assets 
Receivables                                                   1,605          1,588 
Cash and cash equivalents                                       394          2,504 
                                                         __________     __________ 
                                                              1,999          4,092 
                                                         __________     __________ 
Total assets                                                 14,154         16,131 
                                                         __________     __________ 
Current liabilities 
Trade and other payables                                      3,003          3,617 
Bank loan                                                       687          2,635 
                                                         __________     __________ 
                                                            (3,690)        (6,252) 
                                                         __________     __________ 
Total assets less current liabilities                        10,464          9,879 
                                                         __________     __________ 
Non - current liabilities                                   (3,744)        (3,375) 
                                                         __________     __________ 
Net assets                                                    6,720          6,504 
                                                         __________     __________ 
Equity attributable to equity holders 
Ordinary share capital                                       25,000         25,000 
Convertible preference share capital                         10,000         10,000 
Capital reserve                                            (28,448)       (28,606) 
Retained revenue earnings                                       168            110 
                                                         __________     __________ 
Total equity                                                  6,720          6,504 
                                                         __________     __________ 
Approved: 27 May 2021 
Cash flow statement 
For the year ended 31 December 2020 
                                                        Year ended  Year ended 
                                                              2020        2019 
                                                       £ 000       £ 000 
Cash flows from operating activities 
Profit before tax                                      1,037       1,058 
Adjustments for: 
Gains on investments                                   (428)       (544) 
Proceeds on disposal of investments at fair            2,619       16,316 
value through profit and loss 
Purchases of investments at fair value through         (2,415)     (14,521) 
profit and loss 
Finance costs                                          64          102 
                                                        __________  __________ 
Operating cash flows before movements in working       877         2,411 
Decrease in receivables                                34          2,417 
Decrease in payables                                   (192)       (363) 
                                                        __________  __________ 
Net cash from operating activities before                      719       4,465 
Interest paid                                          (31)        (97) 
                                                        __________  __________ 
Net cash from operating activities                             688       4,368 
Cash flows from financing activities 
Dividends paid on ordinary shares                            (675)     (1,778) 
Dividends paid on preference shares                          (175)       (175) 
Bank loan                                                  (1,948)       (155) 
                                                        __________  __________ 
Net cash used in financing activities                      (2,798)     (2,108) 
                                                        __________  __________ 
Net (decrease)/increase in cash and cash               (2,110)     2,260 
Cash and cash equivalents at beginning of year 
                                                             2,504         244 
                                                        __________  __________ 
Cash and cash equivalents at end of year 
                                                               394       2,504 
                                                        __________  __________ 
Purchases and sales of investments are considered to be operating activities of 
the company, given its purpose, rather than investing activities. 
1 Basis of preparation and going concern 
The financial information set out above contains the financial information of 
the company for the year ended 31 December 2020. The company has prepared its 
financial statements under IFRS. The financial statements have been prepared on 
a going concern basis adopting the historical cost convention except for the 
measurement at fair value of investments, derivative financial instruments and 
The information for the year ended 31 December 2020 is an extract from the 
statutory accounts to that date. Statutory company accounts for 2019, which 
were prepared under IFRS as adopted by the EU, have been delivered to the 
registrar of companies and company statutory accounts for 2020, prepared under 
IFRS as adopted by the EU, will be delivered in due course. 
The auditors have reported on the 31 December 2020 year end accounts and their 
reports were unqualified and did not include references to any matters to which 
the auditors drew attention by way of emphasis without qualifying their reports 
and did not contain statements under section 498(2) or (3) of the Companies Act 
The directors, having made enquiries, consider that the company has adequate 
financial resources to enable it to continue in operational existence for the 
foreseeable future. Accordingly, the directors believe that it is appropriate 
to continue to adopt the going concern basis in preparing the company's 
2 Income 
                                                            2020       2019 
                                                       £ 000     £ 000 
Income from investments 
UK dividends                                                221        938 
Overseas dividends                                            -        173 
Dividend from subsidiary                                  1,066         74 
                                                       _________ __________ 
                                                           1,287      1,185 
Other income                                                  85         58 
                                                       _________ __________ 
Total income                                               1,372      1,243 
                                                       _________ __________ 
Total income comprises: 
Dividends                                                  1,287     1,185 
Other interest                                               85         58 
                                                       _________ __________ 
                                                           1,372      1,243 
                                                       _________ __________ 
Dividends from investments 
Listed investments                                          221      1,111 
Unlisted investments                                      1,066         74 
                                                       _________ __________ 
                                                          1,287      1,185 
                                                       _________ __________ 
Of the £1,287,000 (2019 - £1,185,000) dividends received, £90,000 (2019 - £ 
879,000) related to special and other dividends received from investee 
companies that were bought after the dividend announcement. There was a 
corresponding capital loss of £324,000 (2019 - £1,027,000), on these 
Under IFRS 10 the income analysis is for the parent company only rather than 
that of the consolidated group. Thus film revenues of £84,000 (2019 - £106,000) 
received by the subsidiary British & American Films Limited and property unit 
trust income of £14,000 (2019 - £14,000) received by the subsidiary BritAm 
Investments Limited are shown separately in this paragraph. 
3 Earnings per ordinary share 
The calculation of the basic (after deduction of preference dividend) and 
diluted earnings per share is based on the following data: 
           2020                             2019 
              Revenue    Capital      Total    Revenue    Capital      Total 
               return     return                return     return 
           £ 000      £ 000      £ 000      £ 000      £ 000      £ 000 
Basic             558        158        716        564        196        760 
dividend          350         -         350        350         -        350 
           __________ __________ __________ __________ __________ __________ 
Diluted           908        158      1,066        914        196      1,110 
           __________ __________ __________ __________ __________ __________ 
Basic revenue, capital and total return per ordinary share is based on the net 
revenue, capital and total return for the period after tax and after deduction 
of dividends in respect of preference shares and on 25 million (2019: 25 
million) ordinary shares in issue. 
The diluted revenue, capital and total return is based on the net revenue, 
capital and total return for the period after tax and on 35 million (2019: 35 
million) ordinary and preference shares in issue. 
4 Dividends 
                                                   2020        2019 
                                                   £ 000       £ 000 
Amounts recognised as distributions to equity 
holders in the period 
Dividends on ordinary shares: 
Final dividend for the year ended 31 December 2019 
of 0.0p                                                      -       1,500 
(2018: 6.0p) per share 
Interim dividend for the year ended 31 December 
2020 of 2.7p                                               675         675 
(2019: 2.7p) per share 
                                                    __________  __________ 
                                                           675       2,175 
                                                    __________  __________ 
Proposed final dividend for the year ended 31 
December 2020 of 0.0p (2019: 0.0p) per share                -           - 
                                                    __________  __________ 
Dividends on 3.5% cumulative convertible 
preference shares: 
Preference dividend for the 6 months ended 31 
December 2019 of 0.00p (2018: 1.75p) per share               -         175 
Preference dividend for the 6 months ended 30 June 
2020 of 1.75p (2019: 1.75p) per share                      175         175 
                                                    __________  __________ 
                                                           175         350 
                                                    __________  __________ 
Proposed preference dividend for the 6 months 
ended 31 December 2020 of 0.00p (2019: 0.00p) per           -           - 
                                                    __________  __________ 
We have set out below the total dividend payable in respect of the financial 
year, which is the basis on which the retention requirements of Section 1158 of 
the Corporation Tax Act 2010 are considered. 
Dividends proposed for the period 
                                                          2020        2019 
                                                         £ 000       £ 000 
Dividends on ordinary shares: 
Interim dividend for the year ended 31 December 
2020 of 2.7p                                               675         675 
(2019: 2.7p) per share 
Proposed final dividend for the year ended 31 
December 2020 of 0.0p (2019: 0.0p) per share                 -           - 
                                                    __________  __________ 
                                                           675         675 
                                                    __________  __________ 
Dividends on 3.5% cumulative convertible 
preference shares: 
Preference dividend for the year ended 31 December 
2020 of 1.75p (2019: 1.75p) per share                      175         175 
Proposed preference dividend for the year ended 31 
December 2020 of 0.00p (2019: 0.00p) per share               -           - 
                                                    __________  __________ 
                                                           175         175 
                                                    __________  __________ 
The non-payment in December 2019 and in December 2020 of the dividend of 1.75 
pence per share on the 3.5% cumulative convertible preference shares, 
consequent upon the non-payment of a final dividend on the ordinary shares for 
the year ended 31 December 2019 and for the year ended 31 December 2020, has 
resulted in arrears of £350,000 on the 3.5% cumulative convertible preference 
1st interim dividend declared for the year ended 31 December 2021 of 2.7 pence 
per ordinary share payable on 24 June 2021 to shareholders on the register at 
11 June 2021. A preference dividend of 1.75 pence will be paid to preference 
shareholders on the same date. 
5 Net asset values 
                                                                 Net asset 
                                                           value per share 
                                          2020             2019 
                                          £                £ 
Ordinary shares 
Diluted                                   0.19             0.19 
Undiluted                                 0.19             0.19 
                                                                 Net asset 
                                          2020             2019 
                                          £ 000            £ 000 
Total net assets                          6,720            6,504 
Less convertible preference shares at     (1,920)          (1,858) 
fully diluted value 
                                                __________      __________ 
Net assets attributable to ordinary       4,800            4,646 
                                                __________      __________ 
The undiluted and diluted net asset values per £1 ordinary share are based on 
net assets at the year end and 25 million (undiluted) ordinary and 35 million 
(diluted) ordinary and preference shares in issue. 
Principal risks and uncertainties 
The principal risks facing the company relate to its investment activities and 
include market risk (other price risk, interest rate risk and currency risk), 
liquidity risk and credit risk. The other principal risks to the company are 
loss of investment trust status and operational risk. These will be explained 
in more detail in the notes to the 2020 Annual Report and Accounts, but remain 
unchanged from those published in the 2019 Annual Report and Accounts. 
Related party transactions 
The company rents its offices from Romulus Films Limited, and is also charged 
for its office overheads. 
The salaries and pensions of the company's employees, except for the three 
non-executive directors and one employee are paid by Remus Films Limited and 
Romulus Films Limited and are recharged to the company. 
During the year the company entered into the investment transactions to sell 
stock for £nil (2019 - £540,141) to British & American Films Limited and for £ 
455,000 (2019 - £ nil) to BritAm Investments Limited. 
There have been no other related party transactions during the period, which 
have materially affected the financial position or performance of the company. 
Capital Structure 
The company's capital comprises £35,000,000 (2019 - £35,000,000) being 
25,000,000 ordinary shares of £1 (2019 - 25,000,000) and 10,000,000 non-voting 
convertible preference shares of £1 each (2019 - 10,000,000). The rights 
attaching to the shares will be explained in more detail in the notes to the 
2020 Annual Report and Accounts, but remain unchanged from those published in 
the 2019 Annual Report and Accounts. 
Directors' responsibility statement 
The directors are responsible for preparing the financial statements in 
accordance with applicable law and regulations. The directors confirm that to 
the best of their knowledge the financial statements prepared in accordance 
with the applicable set of accounting standards, give a true and fair view of 
the assets, liabilities, financial position and the (loss)/profit of the 
company and that the Chairman's Statement, Managing Director's Report and the 
Directors' report include a fair review of the information required by rules 
4.1.8R to 4.2.11R of the FSA's Disclosure and Transparency Rules, together with 
a description of the principal risks and uncertainties that the company faces. 
Annual General Meeting 
This year's Annual General Meeting has been convened for Tuesday 29 June 2021 
at 12.15pm at Wessex House, 1 Chesham Street, London SW1X 8ND. 

(END) Dow Jones Newswires

May 27, 2021 06:09 ET (10:09 GMT)

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