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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Establishment Investment Trust Plc | LSE:ET. | London | Ordinary Share | GB0031336919 | ORD 25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 217.00 | 212.00 | 222.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMET.
RNS Number : 3733X
Establishment Inv. Trust PLC (The)
23 November 2017
THE ESTABLISHMENT INVESTMENT TRUST PLC
(the 'Company')
LEI: 213800I9IT25LOQ1UW49
Replacement announcement
Update of registered auditor.
Half-year financial report for the six months ended 30 September 2017
Objective of the Company
The investment objective of the Company is to achieve long term capital growth from a managed international portfolio of securities. The preservation of capital is of primary importance to the investment objective.
The Company aims to achieve absolute returns and is not managed by reference to any equity or bond index or benchmark.
Investment Policy
-- To invest primarily in equities issued by companies listed on regulated markets. With the prior approval of the Board, the Company may invest in unlisted securities.
-- Up to 30% of net assets may be invested in investment products managed by the Company's Investment Manager. The Company may also hold positions in investment products managed by third parties.
-- Up to a maximum of 15% of net assets (at cost at the date of investment) may be invested in any one security.
-- The Company may borrow up to a maximum of 50% of net assets.
Financial Highlights
Performance for the six months ended 30 September 2017
At 30 September 2017 Total return ------------------------------------- ---------------- ------------- Share price 215.75p +11.5% Net asset value per Ordinary Share 261.38p +2.2% FTSE UK Private Investor Balanced Index * +1.9% MSCI UK Equity * +2.6% MSCI AC World Equity * +2.7% MSCI AC Asia ex Japan Equity * +8.1% ------------------------------------- ---------------- ------------- * The above percentages are total returns in sterling
Share Price performance relative to the Net Asset Value and FTSE UK Private Investor Balanced Index since inception on 18 March 2002 to 30 September 2017 (total return)
Chart - see Half year report on website
Chairman's Statement
During the first half of the Company's financial year, the share price rose 7.7% while the Net Asset Value (NAV) slipped 0.7%. Including the final and special dividends paid in July 2017, the total returns were 11.5% and 2.2% respectively. The majority of the Company's assets continue to be invested throughout Asia while multinationals listed in London represent approximately a sixth of the portfolio. Although Asian markets continued to perform well, a recovery in sterling adversely affected our base currency performance over the period.
At long last and after a decade of aggressive monetary expansion through the co-ordinated action of Central Banks, we appear to be seeing a synchronised global economic recovery. From February 2018, the US Federal Reserve will be led by Jerome Powell, believed likely to follow the "dovish" policies set by the present Governor, Janet Yellen. Powell may now contemplate trimming the Fed's balance sheet and moving to raise interest rates gradually. However, inflation appears to be contained for the time being, although important supply side reforms executed by China have seen cuts in industrial capacity and a rebound in commodity prices, which could start to unwind the exporting of deflation to Western economies. There is a risk that a pickup in inflation could accelerate tightening of policy and hence, liquidity. Nevertheless, our manager is confident that the outlook for Asian economies remains bright. The rise in disposable incomes in the region is creating secular domestic demand while infrastructure programmes and inter regional trade are all pointing to sustained future growth. Asian corporate earnings are forecast to grow in the current year and the next. Regional valuations are still undemanding, particularly when compared to the US stock market.
The revenue account continues to improve increasing by some 40% compared to the first half of the previous financial year. The Board has declared an interim dividend of 3.0p representing a 20% increase over last year's interim payment. The shares will be quoted ex-dividend on 30th November 2017 and the dividend will be paid on 22nd December 2017 to shareholders on the register at the close of business on 1st December 2017.
The advent of MiFID II and PRIIPs in January 2018 are largely unwelcome pieces of legislation to which the Company will need to comply with.
It is encouraging to see that that the share price discount to NAV has narrowed significantly from 23.9% to 17.5% responding to the improved performance and the payment of an increased full year dividend, including a special dividend repeated for the second year in a row, together with the appointment of Stockdale Securities as corporate brokers. The Board have no authority to buy back shares. It is the Board's view that the shares are undervalued and represent an opportunity to buy into a strategy that has compounded total return at a growth rate of 8.7% per annum since the Company listed in 2002, while the progressive dividend policy has delivered income.
Harry Wells
Chairman
22 November 2017
Investment Manager's Report
During the first half of the Company's financial year the share price rose 7.7% while the Net Asset Value slipped 0.7%. Including the final and special dividends paid in July 2017, the total returns were 11.5% and 2.2% respectively. For comparative purposes, the MSCI AC Asia ex Japan Index rose 8.1%, the MSCI AC World Index advanced 2.7% and the FTSE UK Private Investor Balanced Index gained 1.9%.
The discount of the share price to the net asset value narrowed from 23.9% to 17.5% during the period under review.
Performance and Portfolio Review
In the UK equity portfolio, both the tobacco holdings (BATS (-10.8%) and Imperial Brands (-16.4%)) underperformed significantly. GlaxoSmithKline (-8.1%) and National Grid (-6.6%) also had a barren period with only Unilever (+11.3%) performing strongly, thanks to interest from Mr Buffett et alia. Four of these five holdings are multinational corporations with significant overseas earnings so the recent recovery of sterling has proved something of a headwind.
The 6% average absolute decline of these UK equity holdings (which account for approximately one sixth of the portfolio) has been a drag on overall performance. These are large blue chip companies with strong long term records and, after the recent setback, yield an average of almost 5%. We remain more suspicious of sterling's outlook than the longer term future of these companies.
In Asia, there have been two standout performers over the past six months. By country, MSCI China (+18.7%) and by sector, MSCI Information Technology (+20.4%) have outperformed significantly. They also happen to be the biggest country and sector constituents in the regional index. While the Company has retained decent exposure to both Chinese equities and Information Technology stocks (circa 20% and 10% respectively over the period), this has simply not been enough in a relative sense.
Bright spots in the portfolio included Tencent (+40.9%), Voltronics (+30.6%), Minth (+24.3%), Ayala Land (+22.3%) and Johnson Electric (+21.3%). The more disappointing performers in Asia have been almost all exclusively consumer-orientated companies; an area where the Company retains significant exposure.
Economic and Market Outlook
In America, the good news is that the tried and tested checks and balances enshrined in the American constitution are working. Simply put, President Trump has been unable to deliver on the vast majority of his isolationist economic policies and so the global economy led by China rolls on.
Over the past five years, General Secretary Xi Jinping has reversed or eliminated the majority of the disastrous economic policies of his predecessor. Specific supply side reforms and tighter control of the capital account have both been actioned very efficiently while Xi's new slogan "Beautiful China" suggests further substantial efforts to curb pollution. Economic growth has slowed but the quality of this growth, driven more by rising consumption levels than investment, has improved significantly. More importantly, Xi has restored the credibility of the Communist Party in the eyes of the Chinese people with his five year long anti-corruption agenda and is set to stay in power for a considerable period. Markets love certainty. A stable Chinese economy lies at the heart of Asia's future.
Meanwhile, in India, Prime Minister Modi continues to impress. Demonetisation and the recent introduction of a nationwide General Sales Tax have presented corporate India with significant challenges over the past year. Despite these severe disruptions, the economy has continued to expand, driven primarily by rising consumption, itself supported by India's outstanding demographic profile. The lack of a recovery in the investment cycle has worried many observers, including ourselves. The availability of credit in recent years has been compromised by the poor financial health of the public sector banks which, collectively, account for roughly two thirds of the banking sector. The recent announcement, therefore, by the Modi administration of a US$32bn recapitalisation of the public sector banks is significant. A recapitalised banking system will, in time, fund a new investment cycle which will power India's growth for years to come.
While the solid performance of regional markets over the past eighteen months means that valuations are no longer at bargain basement levels, your Investment Manager continues to strive to identify excellent investments and remains optimistic of further solid long term gains.
Blackfriars Asset Management Limited
Investment Manager
22 November 2017
Interim Management Report
The Directors are required to provide an Interim Management Report in accordance with the UK Listing Authority's Disclosure Guidance and Transparency Rules. They consider that the Chairman's Statement and the Investment Manager's Report, the following statement on related party transactions and the Directors' Responsibility Statement below, together constitute the Interim Management Report for the Company for the six months ended 30 September 2017.
The principal risks to the Company are in respect of foreign currency, interest rates, market prices, liquidity and credit risks. A detailed explanation of these risks and uncertainties can be found in the Company's Annual Report for the year ended 31 March 2017. The risks and uncertainties facing the Company remain unchanged from those disclosed in the Annual Report.
The Directors confirm that no related party transactions were undertaken by the Company in the first six months of the current financial year other than as disclosed in note 10 of this Half-yearly financial report. There have been no significant changes to the related party transactions described in the Annual Report of the Company for the year ended 31 March 2017.
Directors' Responsibility Statement
Each of the Directors confirms that, to the best of the knowledge of that Director:
a) the condensed set of Financial Statements contained within the Half-yearly financial report has been prepared in accordance with FRS 104 Interim Financial Reporting;
b) the Interim Management Report includes a fair review; as required by Disclosure Guidance and Transparency Rule 4.2.7 R; of important events that have occurred during the first six months of the financial year, their impact on the condensed set of Financial Statements and a description of the principal risks and perceived uncertainties for the remaining six months of the financial year; and
c) the Interim Management Report includes a fair review of the information concerning related parties transactions as required by Disclosure Guidance and Transparency Rule 4.2.8 R.
The half-year financial report for the six months ended 30 September 2017 and the above Directors' Responsibility Statement were approved by the Board on 22 November 2017.
Harry Wells
Chairman
Portfolio Holdings at 30 September 2017
(All Equity Shares unless otherwise stated)
% of net assets (portfolio Fair value % of net look Holding Company GBP'000 assets through basis) ------------ ----------------------------------- ------------- --------- ---------------- Blackfriars Oriental Focus 390,000 Fund 'B'* 7,628 14.6 - 53,500 British American Tobacco 2,500 4.8 4.8 1,252 Samsung Electronics 2,092 4.0 4.7 8,750,000 Land & Houses 1,942 3.7 4.0 250,000 China Mobile 1,891 3.6 3.6 42,000 Unilever 1,814 3.5 3.5 297,933 Zee Entertainment 1,770 3.4 4.1 55,000 Imperial Brands 1,751 3.3 3.3 Housing Development Finance 86,426 Corporation 1,705 3.3 4.0 2,537,700 Ayala Land 1,617 3.1 3.8 492,700 Samsonite International 1,575 3.0 3.7 294,000 Taiwan Semiconductor Manufacturing 1,566 3.0 3.7 233,217 Siam City Cement 1,474 2.8 3.4 501,000 Johnson Electric Holdings 1,427 2.7 3.4 352,000 Minth Group 1,376 2.6 3.4 92,000 GlaxoSmithKline 1,369 2.6 2.6 431,263 ITC 1,272 2.4 2.9 813,596 Uni-President Enterprise 1,267 2.4 3.1 134,750 National Grid 1,245 2.4 2.4 304,800 Sands China 1,184 2.3 2.8 Industrial & Commercial Bank 2,010,000 of China 1,112 2.1 2.6 1,546,000 Sun Art Retail Group 1,070 2.1 2.6 73,070 Ayala Corporation 1,040 2.0 2.5 2,300,000 Astra International 1,007 1.9 2.4 1,026,000 China Communications 956 1.8 2.2 5,750 SK Telecom 956 1.8 2.4 28,911 Shinhan Financial 946 1.8 2.4 1,613,000 IJM Corporation 938 1.8 2.2 14,185,637 Silver Heritage 830 1.6 1.8 3,420,000 Singer Sri Lanka 769 1.5 1.8 5,700 Alibaba Group 735 1.5 1.8 6,700 Hanssem 659 1.3 1.5 19,600 Tencent Holdings 630 1.2 1.5 Voltronic Power Technology 40,000 Corporation 534 1.0 1.3 810 LG Household & Healthcare 494 0.9 1.2 - Other investments** - - 0.1 Total investments 51,141 97.8 97.5 Net current assets 1,135 2.2 2.5 ------------ ----------------------------------- ------------- --------- ---------------- Net assets 52,276 100.0 100.0 ------------ ----------------------------------- ------------- --------- ---------------- * Blackfriars Asset Management Irish domiciled and listed fund ** 'Other investments' are investments held by Blackfriars Oriental Focus Fund 'B' which are not held by the Company
Analysis of Investment Portfolio at 30 September 2017
% of net assets (portfolio Fair value % of net look Sector Analysis GBP'000 assets through basis) ------------------------------ ----------- --------- ---------------- Consumer Staples 10,168 19.4 21.4 Consumer Discretionary 9,170 17.6 21.5 Financials 8,362 16.0 19.4 Investment Companies 7,628 14.6 - Industrials 5,100 9.7 11.5 Information Technology 5,023 9.7 11.7 Telecommunication Services 2,847 5.4 6.0 Materials 1,474 2.8 3.4 Health Care 1,369 2.6 2.6 Total investments 51,141 97.8 97.5 Net current assets 1,135 2.2 2.5 ------------------------------ ----------- --------- ---------------- Net assets 52,276 100.0 100.0 ------------------------------ ----------- --------- ---------------- % of net assets (portfolio Geographical Analysis (based Fair value % of net look on listing or domicile) GBP'000 assets through basis) ------------------------------ ----------- --------- ---------------- United Kingdom 8,679 16.6 16.6 Ireland * 7,628 14.6 - Hong Kong 7,262 13.9 17.4 Korea 5,147 9.8 12.2 India 4,747 9.1 11.0 China 4,694 9.0 10.2 Thailand 3,416 6.5 7.4 Taiwan 3,367 6.4 8.1 Philippines 2,657 5.1 6.3 Indonesia 1,007 1.9 2.4 Malaysia 938 1.8 2.2 Australia 830 1.6 1.8
Sri Lanka 769 1.5 1.8 Vietnam - - 0.1 Total investments 51,141 97.8 97.5 Net current assets 1,135 2.2 2.5 ------------------------------ ----------- --------- ---------------- Net assets 52,276 100.0 100.0 ------------------------------ ----------- --------- ---------------- % of net assets (portfolio Fair value % of net look Classification of Assets GBP'000 assets through basis) ------------------------------ ----------- --------- ---------------- Equities 51,141 97.8 97.5 Net current assets 1,135 2.2 2.5 ------------------------------ ----------- --------- ---------------- Net assets 52,276 100.0 100.0 ------------------------------ ----------- --------- ---------------- * Blackfriars Asset Management Irish domiciled and listed fund. This represents the investment in Blackfriars Oriental Focus Fund 'B' which is invested in Asia (ex Japan) equities.
Condensed Income Statement
Six months ended 30 Six months ended 30 September 2017 (unaudited) September 2016 (unaudited) -------------------------------- -------------------------------- Notes Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 --------------------------- ------ ---------- --------- --------- ---------- --------- --------- Gains on investments - 474 474 - 7,128 7,128 Exchange (losses) / gains on currency balances - (117) (117) - 469 469 Income 5 1,185 - 1,185 889 - 889 Investment management fees (37) (147) (184) (28) (111) (139) Other expenses (125) - (125) (159) - (159) Return before tax 1,023 210 1,233 702 7,486 8,188 Tax on return for the period 7 (89) - (89) (38) - (38) Return for the financial period 934 210 1,144 664 7,486 8,150 Return per Ordinary Share 8 4.67p 1.05p 5.72p 3.32p 37.43p 40.75p --------------------------- ------ ---------- --------- --------- ---------- --------- --------- Year ended 31 March 2017 (audited) ------------------------------- Notes Revenue Capital Total GBP'000 GBP'000 GBP'000 ---------------------------- ------ --------- --------- --------- Gains on investments - 10,358 10,358 Exchange gains on currency balances - 595 595 Income 5 1,442 - 1,442 Investment management fees (60) (242) (302) Other expenses (282) - (282) Return before tax 1,100 10,711 11,811 Tax on return for the year 7 (50) - (50) Return for the financial year 1,050 10,711 11,761 Return per Ordinary Share 8 5.25p 53.56p 58.81p ---------------------------- ------ --------- --------- ---------
All revenue and capital items in the above statement derive from continuing operations.
The total columns in this statement represent the Income Statement of the Company. The revenue and capital columns are supplementary to this and are prepared under the guidance published by the Association of Investment Companies.
As all the gains and losses of the Company have been reflected in the above statement, the return for the financial period is also the total comprehensive income for the period.
Condensed Statement of Financial Position
30 September 30 September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) Note GBP'000 GBP'000 GBP'000 ------------------------------------ ----- ------------------ ------------------ ---------------- Fixed assets Investments held at fair value through profit or loss 51,141 46,857 50,077 ------------------------------------ ----- ------------------ ------------------ ---------------- Current assets Debtors 30 38 813 Cash at bank 1,136 2,704 3,183 ------------------------------------ ----- ------------------ ------------------ ---------------- 1,166 2,742 3,996 Payables: amounts falling due within one year (31) (78) (1,441) ------------------------------------ ----- ------------------ ------------------ ---------------- Net current assets 1,135 2,664 2,555 Net assets 52,276 49,521 52,632 ------------------------------------ ----- ------------------ ------------------ ---------------- Capital and reserves Called up share capital 5,000 5,000 5,000 Share premium 14,701 14,701 14,701 ------------------------------------ ----- ------------------ ------------------ ---------------- 19,701 19,701 19,701 Capital reserve 31,377 28,802 32,027 Revenue reserve 1,198 1,018 904 ------------------------------------ ----- ------------------ ------------------ ---------------- Equity shareholders' funds 52,276 49,521 52,632 ------------------------------------ ----- ------------------ ------------------ ---------------- Net asset value per Ordinary Share 6 261.38p 247.61p 263.16p
The financial statements were approved by the Board and signed on its behalf by:
Harry Wells
Chairman
22 November 2017
Registered in England No. 4355437
Condensed Statement of Changes in Equity
For the six months ended 30 September 2017 (unaudited) Called up share Share Capital Revenue capital premium reserve reserve Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 -------------------------- --------------- --------------- --------- --------- --------- At 31 March 2017 5,000 14,701 32,027 904 52,632 Return for the financial period - - 210 934 1,144 Dividends paid - - (860) (640) (1,500) -------------------------- --------------- --------------- --------- --------- --------- At 30 September 2017 5,000 14,701 31,377 1,198 52,276 -------------------------- --------------- --------------- --------- --------- --------- For the six months ended 30 September 2016 (unaudited) Called up share Share Capital Revenue capital premium reserve reserve Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 -------------------------- --------------- --------------- --------- --------- --------- At 31 March 2016 5,000 14,701 22,096 994 42,791 Return for the financial period - - 7,486 664 8,150 Dividends paid - - (780) (640) (1,420) -------------------------- --------------- --------------- --------- --------- --------- At 30 September 2016 5,000 14,701 28,802 1,018 49,521 -------------------------- --------------- --------------- --------- --------- ---------
For the year ended 31 March 2017 (audited) Called up share Share Capital Revenue capital premium reserve reserve Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 -------------------------- --------------- --------------- --------- --------- --------- At 31 March 2016 5,000 14,701 22,096 994 42,791 Return for the financial year - - 10,711 1,050 11,761 Dividends paid - - (780) (1,140) (1,920) -------------------------- --------------- --------------- --------- --------- --------- At 31 March 2017 5,000 14,701 32,027 904 52,632 -------------------------- --------------- --------------- --------- --------- ---------
Condensed Statement of Cash Flows
Six months Six months ended 30 ended 30 Year ended September September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) GBP'000 GBP'000 GBP'000 ---------------------------------------- ------------------ ------------------ ---------------- Cash flows from operating activities Return for the financial period 1,144 8,150 11,761 Adjustments for: Taxation 89 38 50 Gains on investments held at fair value (474) (7,128) (10,358) Losses / (gains) on exchange movements 117 (469) (595) Decrease in trade debtors 149 176 36 (Decrease) / increase in trade creditors (63) (9) 11 ----------------------------------------- ------------------ ------------------ ---------------- Cash from operations 962 758 905 Taxation (89) (38) (50) ----------------------------------------- ------------------ ------------------ ---------------- Net cash generated from operating activities 873 720 855 ----------------------------------------- ------------------ ------------------ ---------------- Cash flows from investing activities Purchase of investments (15,928) (10,252) (17,263) Sale of investments 14,625 11,261 18,992 ----------------------------------------- ------------------ ------------------ ---------------- Net cash (used for) / generated from investing activities (1,303) 1,009 1,729 ----------------------------------------- ------------------ ------------------ ---------------- Cash flows from financing activities Equity dividends paid (1,500) (1,420) (1,920) ----------------------------------------- ------------------ ------------------ ---------------- Net cash used for financing activities (1,500) (1,420) (1,920) ----------------------------------------- ------------------ ------------------ ---------------- Net (decrease) / increase in cash and cash equivalents (1,930) 309 664 Foreign exchange movements (117) 471 595 Cash and cash equivalents at beginning of period 3,183 1,924 1,924 ----------------------------------------- ------------------ ------------------ ---------------- Cash and cash equivalents at end of period 1,136 2,704 3,183 ----------------------------------------- ------------------ ------------------ ----------------
Notes to the Financial Statements
1. Accounting policies
The half-yearly financial report for the six months ended 30 September 2017 (the "Report") has been prepared in accordance with FRS 104 Interim Financial Reporting and the Statement of Recommended Practice "Financial statements of investment trust companies" issued by the Association of Investment Companies in November 2014 and updated in January 2017 with consequential amendments.
The Report is unaudited and does not include all of the information required for full annual financial statements. The Report should be read in conjunction with the annual report and financial statements of the Company for the year ended 31 March 2017. The accounting policies and presentation in the Report are consistent with those applied in the Annual Report for the year ended 31 March 2017.
The Company conducts its affairs in a manner intended to meet the requirements for approval as an investment trust under section 1158 of the Corporation Tax Act 2010.
These financial statements have been prepared in accordance with the requirements of section 838 of the Companies Act 2006 and constitute the Company's interim accounts for the purpose of justifying the payment of an interim dividend for the year ending 31 March 2018.
2. Status of the Report
The Report does not represent the Company's statutory accounts for the purposes of section 434 of the Companies Act 2006. The Report will be sent to shareholders and copies will be made available to the public at the registered office of the Company and will be available on the investment manager's website (www.blackfriarsam.com).
The financial information for the year ended 31 March 2017 included in the Report has been extracted from the Company's audited annual accounts for the year to 31 March 2017, which contained an unqualified audit report and did not include statements under Sections 498(2) or 498(3) of the Companies Act 2006. Those accounts have been filed with the Registrar of Companies.
3. Going concern
These financial statements have been prepared on a going concern basis. The following is a summary of the Directors' assessment of the going concern status of the Company.
The majority of the net assets of the Company are securities which are traded on recognised stock exchanges. After considering the Company's current financial resources, the Directors are satisfied that its resources are adequate for continuing in business for the foreseeable future.
4. Valuation of investments
The Company's investments have been designated at fair value through profit or loss, and are recognised on the trade date and are initially measured at cost being the fair value. Investments are measured at subsequent reporting dates at fair value, and changes in fair value are included in the Condensed Income Statement as a capital item. For listed investments, fair value is deemed to be either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.
Unquoted investments would also be valued by the Directors at fair value. The Company held no unquoted investments at the period end.
5. Income Six months Six months ended 30 ended 30 Year ended September September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) GBP'000 GBP'000 GBP'000 -------------------------- ------------------ ------------------ ---------------- Income from investments: Overseas dividends 1,026 711 1,055 UK dividends 159 178 387 -------------------------- ------------------ ------------------ ---------------- 1,185 889 1,442 -------------------------- ------------------ ------------------ ---------------- 6. Net asset value per Ordinary Share Six months Six months ended 30 ended 30 Year ended September September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) ------------------------------ ------------------ ------------------ ---------------- Net assets attributable GBP52,276,000 GBP49,521,000 GBP52,632,000 Ordinary Shares in issue 20,000,000 20,000,000 20,000,000 ------------------------------ ------------------ ------------------ ---------------- Net asset value per Ordinary Share 261.38p 247.61p 263.16p ------------------------------ ------------------ ------------------ ---------------- 7. Taxation
The tax charge relates to overseas withholding tax incurred on income received/receivable.
8. Return per Ordinary Share Six months Six months ended 30 ended 30 Year ended September September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) --------------------------- ------------------ ------------------ ---------------- Total return per Ordinary Share Total return GBP1,144,000 GBP8,150,000 GBP11,761,000 Weighted average number of Ordinary Shares in issue during the period 20,000,000 20,000,000 20,000,000 --------------------------- ------------------ ------------------ ---------------- Total return per Ordinary Share 5.72p 40.75p 58.81p --------------------------- ------------------ ------------------ ----------------
The total return per Ordinary Share detailed above can be further analysed between revenue and capital, as below:
Six months Six months ended 30 ended 30 Year ended September September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) ----------------------------- ------------------ ------------------ ---------------- Revenue return per Ordinary Share Revenue return GBP934,000 GBP664,000 GBP1,050,000 Weighted average number of Ordinary Shares in issue during the period 20,000,000 20,000,000 20,000,000 ----------------------------- ------------------ ------------------ ---------------- Revenue return per Ordinary Share 4.67p 3.32p 5.25p ----------------------------- ------------------ ------------------ ---------------- Capital return per Ordinary Share Capital return GBP210,000 GBP7,486,000 GBP10,711,000 Weighted average number of Ordinary Shares in issue during the period 20,000,000 20,000,000 20,000,000 ----------------------------- ------------------ ------------------ ---------------- Capital return per Ordinary Share 1.05p 37.43p 53.56p ----------------------------- ------------------ ------------------ ---------------- 9. Interim dividend
The Directors have declared an interim dividend of 3.0p per Ordinary Share in respect of the year ending 31 March 2018. The shares will be quoted ex-dividend on 30(th) November 2017 and the dividend will be paid on 22(nd) December 2017 to Shareholders on the register at the close of business on 1(st) December 2017.
10. Related party transactions
Fees payable to the Company's investment manager, Blackfriars Asset Management Limited ("Blackfriars") are shown in the Condensed Income Statement. At 30 September 2017, the fee accrual outstanding to Blackfriars was GBP30,029 (30 September 2016: GBP25,413).
Up to 30% of net assets may be invested in investment products managed by the Company's investment manager. At 30 September 2017, the aggregate amount invested in investment products managed by Blackfriars represented 14.6% of the Company's net assets. Blackfriars rebates management fees in respect of amounts invested in Blackfriars' investment products back to the Company.
Fees payable to the Directors for the six months ended 30 September 2017 were GBP37,000 (six months ended 30 September 2016: GBP33,750). Fees are payable at an annual rate of GBP22,000 to the Chairman, GBP19,250 to the Chairman of the Audit and Risk Committee and GBP16,500 to the other Directors. Tom Waring has waived his Director's fee since the appointment of Blackfriars as investment manager to the Company.
The interests of the Directors in the Ordinary Shares of the Company on the dates shown were as follows:
Ordinary Shares of 25p each Six months Six months ended 30 ended 30 Year ended September September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) GBP'000 GBP'000 GBP'000 -------------------- -------------------- -------------------- -------------------- Harry Wells (b) 30,000 26,000 30,000 Harry Wells (c) - 4,000 - Jim Ryall - - - Gregory Shenkman 3,415 3,415 3,415 Susan Thornton (a) 1,744,728 1,744,728 1,744,728 Tom Waring (b) 3,891 - - -------------------- -------------------- -------------------- --------------------
(a) As a Trustee of The Thornton Foundation
(b) Held in SIPP
(c) As a Trustee of The Pauline Lamb Grandchildren's Trust
Susan Thornton also has an interest as a beneficiary of The Estate of Richard Thornton, which at the date of this report held 3,611,083 Ordinary Shares in the Company.
No changes in the above interests have been notified to the Company between 30 September 2017 and the date of this Report.
11. Classification of financial instruments
FRS 102, as amended for fair value hierarchy disclosures (March 2016), sets out three fair value levels. These are:
Level 1
The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
Level 2
Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.
Level 3
Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
The classification of the Company's investments held at fair value is detailed in the table below:
Six months Six months ended 30 ended 30 Year ended September September 31 March 2017 (unaudited) 2016 (unaudited) 2017 (audited) GBP'000 GBP'000 GBP'000 --------- ------------------ ------------------ ---------------- Level 1 51,141 46,857 48,806 Level 2 - - 836 Level 3 - - 435 --------- ------------------ ------------------ ---------------- Total 51,141 46,857 50,077 --------- ------------------ ------------------ ----------------
12. Distributable reserves
The Company's distributable reserves consist of the capital reserve and revenue reserve. Dividends may be paid from either of these reserves.
Company Information
Directors Investment Manager Harry Wells (Chairman) Blackfriars Asset Management Limited Jim Ryall 9 Cloak Lane Gregory Shenkman London EC4R 2RU Susan Thornton Tel: 020 7332 2270 Tom Waring www.blackfriarsam.com Corporate Secretary and Registered Solicitors Office PraxisIFM Fund Services (UK) Stephenson Harwood Limited Mermaid House 1 Finsbury Circus 2 Puddle Dock London EC2M 7SH London EC4V 3DB Registrars Registered Auditor Link Asset Services BDO LLP (formerly trading as Capita Registrars) 55 Baker Street The Registry London 34 Beckenham Road W1U 7EU Beckenham Kent BR3 4TU Broker Custodian Stockdale Securities The Northern Trust Company Beaufort House 50 Bank Street 15 St Botolph Street Canary Wharf London EC3A 7BB London E14 5NT
The Company's web pages can be accessed on the Investment Manager's website at www.blackfriarsam.com.
Individual Savings Account ('ISA')
The Company's shares are eligible to be held in an ISA account subject to HM Revenue & Customs' limits.
Registered in England No. 4355437
Enquiries:
Anthony Lee / Ciara McKillop 020 7653 9690 PraxisIFM Fund Services (UK) Limited Company Secretary
The Half-yearly financial report will be submitted to the National Storage Mechanism and will shortly be available for inspection at: http://www.morningstar.co.uk/uk/NSM.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 23, 2017 07:35 ET (12:35 GMT)
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