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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Henderson European Focus Trust Plc | LSE:HEFT | London | Ordinary Share | GB00BLSNGB01 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -2.50 | -1.39% | 177.50 | 177.50 | 178.50 | 179.00 | 178.50 | 178.50 | 146,354 | 16:35:21 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Unit Inv Tr, Closed-end Mgmt | 79.72M | 75.29M | 0.3539 | 5.06 | 380.85M |
From Apr 2019 to Apr 2024
TIDMHEFT
RNS Number : 2695O
Henderson European Focus Trust PLC
28 May 2020
Legal Entity Identifier: 213800GS89AL1DK3IN50
HERSON EUROPEAN FOCUS TRUST PLC
Unaudited results for the half-year ended 31 March 2020
This announcement contains regulated information
Investment Objective
The Company seeks to maximise total return (a combination of income and capital growth) from a portfolio of stocks listed in Europe.
Performance for the half-year ended 31 March 2020
-- Net asset value ("NAV") total return(1) of -15.5% compared to the benchmark(2) return of -16.7%
Hot Features
Premium
-- Share price(3) total return of -19.2%
-- Interim dividend of 9.60p per share declared (2019: 9.60p)
Total return performance to 31 March 2020 (with dividends reinvested)
6 months 1 year 3 years 5 years 10 years
% % % % %
--------------------------- --------- ------- -------- -------- ---------
NAV(1) -15.5 -5.6 -2.9 21.6 120.8
Benchmark index(2) -16.7 -8.0 -1.6 20.6 70.8
Average AIC sector NAV(4) -15.9 -7.7 1.9 25.3 113.6
Share price(3) -19.2 -9.8 -18.4 1.3 103.8
Average AIC sector share
price(4) -17.0 -9.0 -2.0 14.3 116.9
1 Net asset value ("NAV") total return per ordinary share (with dividends reinvested)
2 FTSE World Europe ex UK Index on a total return basis in Sterling terms
3 Share price total return (with dividends reinvested) using mid-market closing price
4 Association of Investment Companies ("AIC") Europe sector
Sources: Morningstar for the AIC, Refinitiv Datastream and Janus Henderson
Financial highlights
At 31 March At 30 September 2019
2020
------------------------------------------------- ---------------- ---------------------
Shareholders' funds
Net assets (GBP'000) 249,015 299,010
Net asset value ("NAV") per ordinary share 1,158.30p 1,390.86p
Mid-market share price per ordinary share 990.00p 1,245.00p
Gearing at period end 2.1% 4.6%
Half-year ended Year ended
31 March 2020 30 September 2019
------------------------------------------------- ---------------- ---------------------
Total return to equity shareholders
1,084 5,767
Revenue return after taxation (GBP'000)
Capital (loss)/return after taxation (GBP'000) (46,414) 6,139
Total (loss)/return (45,330) 11,906
---------------- ---------------------
Total return per ordinary share
Revenue 5.04p 26.83p
Capital (215.90p) 28.55p
---------------- ---------------------
Total return (210.86p) 55.38p
---------------- ---------------------
INTERIM MANAGEMENT REPORT
Chairman's Statement
When I took over as your Chairman immediately following the Annual General Meeting in January 2020 no one could have imagined the rapid spread of COVID-19 across the globe nor the impact it would have on the investment world. Global stock markets crashed in a way not seen since the financial crisis of 2008 with the consequent impact on your Company's share price, exacerbated by a widening of the discount to net asset value ("NAV") at which your Company's shares trade. It is at times like these that it pays to have an experienced investor from a major investment firm managing the portfolio who did not panic but focused on maintaining the quality of the portfolio by investing in companies with proper funding and robust balance sheets, cash-generative businesses and low leverage. Whilst the full impact of this crisis is not yet clear, your Company is well positioned to outperform through the recovery.
Performance
In the six months to 31 March 2020, the Company's NAV total return per ordinary share fell by 15.5%, compared to a fall of 16.7% in the Company's benchmark, the FTSE World Europe ex UK index, resulting in outperformance of the benchmark of 1.2%. The Company's share price fell by 19.2% to 990 pence, ending the period at a wider than normal 14.5% discount to NAV (30 September 2019: 10.5% discount). Gearing has been actively managed and was 2.1% of net assets at the period end. As at 26 May 2020, the share price had increased by 16.7% to 1155 pence, the discount had narrowed to 12.4% and gearing was 1.4% of net assets.
Revenue and dividend
As I expect you are very well aware the majority of companies are reviewing their dividends in the light of the COVID-19 situation. This may have a significant impact on the revenue generated from the portfolio. We are, however, well placed through our revenue reserves to smooth dividend payments should this be required. That said, it will be important to assess the likely longer-term revenue impact of this crisis.
In the light of these circumstances the Board has decided to declare a maintained interim dividend of 9.60 pence per ordinary share (2019: 9.60 pence). This will be paid on 26 June 2020 to shareholders on the register on 5 June 2020. The shares will be quoted ex-dividend on 4 June 2020. The Board will consider what final dividend to propose at the end of the year in the light of the relevant evidence available at that time.
Board and Fund Manager
Rodney Dennis, Alec Comba and Alain Dromer all retired as directors at the 2020 AGM. Rodney and Alec joined the Board together in November 2003, Rodney became Chairman in September 2006 and Alec was for many years Chairman of the Audit Committee and more recently Senior Independent Director. They steered your Company through some challenging times and each made a significant contribution to the development of the Company. Alain joined the Board in 2014 and was always generous in sharing his knowledge and experience. Our thanks and best wishes go to them all.
I am pleased to announce that Vicky Hastings has been appointed Senior Independent Director.
In January 2020, we were pleased to welcome Tom O'Hara as Co-Fund Manager of the portfolio alongside our lead Fund Manager John Bennett.
Outlook
Due to the COVID-19 situation we are now experiencing a period that for many of us will be the most challenging and uncertain that we have ever faced. The emergence of the pandemic has significantly increased many of the operational as well as the market risks to the Company's business. I would like to reassure shareholders that all operational aspects of your Company have continued to operate smoothly despite the necessary move to remote working by the Manager, the Fund Managers, other key third parties and indeed the Board itself. We have kept and will remain closely in touch with the key parties to ensure that this remains the case.
The outlook for European, and indeed global, economies is uncertain as the full consequences of the actions taken to fight the COVID-19 pandemic are not yet known. Europe is moving into a deep recession which will hopefully be brief but is presently of unknown duration. Whilst the fiscal and monetary responses from central authorities across the world have been dramatic the level of global cooperation to address a pandemic that respects no national boundaries has been weak. Against this background I consider that our Fund Managers' focus on cash generative companies with strong balance sheets and low leverage should serve shareholders well.
Robert Jeens
Chairman
28 May 2020
Fund Managers' Report
It hardly needs saying that the overwhelming factor for all of us during the period under review and, indeed, at the time of writing, has been the global pandemic known as COVID-19. As this virus has spread west, so has its effect on financial markets. Here in Europe, the month of March 2020 saw quite astonishing levels of volatility and severe strain within the financial system. For example, the EuroStoxx 50 index sold off by 30% to begin the month, before rebounding by 19% from trough to peak. As ever, headline indices rarely tell the full story and we have seen wild swings at the individual stock level, often intra-day. Not for the first time, extreme volatility has been aggravated by forced liquidation of excess leverage: leveraged corporates, leveraged funds, whether managed by computer or by human, have found themselves in the crosshairs.
The banking system, courtesy of much tougher regulation since the global financial crisis, seems better prepared than usual. That preparation now includes the forced 'postponement' or cancellation of dividends. Shareholders in banks are now relegated further down the pecking order, more than a decade after what many saw as the great bailout of 'greedy bankers' at the expense of the wider workforce. It is the latter that governments are desperate to be seen to protect this time around. Governments have decided that it is time to try - the emphasis is on try - to favour one factor of production over another: labour over capital. They know they will be judged on this, as well as on protecting the health of their voters. The era of big government has truly arrived. We would remind investors that we sold out of the banking sector, a large component of most European indices, in early 2019. A prime reason for that decision was that we saw the industry headed inexorably toward regulated social utility status: recent events have probably guaranteed that.
The extraordinary monetary and fiscal stimulus unleashed worldwide should provide the necessary credit and liquidity to get through this recession. While this cannot reduce the severity of the economic crash in the very near term, it is at least hoped that it shortens its duration.
Portfolio
We often remind ourselves of the saying "if you're going to panic, panic early". We have felt no urge to panic during this crash. Instead, we have seen fit to utilise the Company's flexibility to accommodate gearing. During the savage sell-off in March 2020 we tactically increased portfolio gearing to some 10%. Subsequently, in the strong rally of the second half of March, we restored gearing to a negligible level of 2.1%. It is fair to say that we rarely get tactical in this fashion but were prepared to do so in such market conditions.
Whilst we are now starting to see some lockdown restrictions easing, we are expecting to see a very different backdrop and level of economic activity over at least the next 6 to 12 months to the ones we have been used to. We have been reviewing the Company's holdings, and in particular their balance sheets, to assess whether they would be able to survive several months of shutdown, whether they have had to access COVID 19-related state support and the resultant recessionary phase which could follow, reassessing how companies are likely to fare in these uncertain times and whether they will come out of the current crisis stronger. Our focus remains on looking beyond the news headlines and focusing instead on individual businesses and their fundamentals.
Away from tactics, it is at times such as this that our innate preference for well capitalised, cash generative businesses comes to the fore. Any business entering this crisis in an over-leveraged state finds itself much weakened, some terminally so. As with all crises, the situation will pass, recovery will take hold and it is those businesses, with strong market shares, talented management teams and strong balance sheets, who will emerge as the winners. It is our belief that your Company is a portfolio of just such businesses.
John Bennett and Tom O'Hara
Fund Managers
28 May 2020
Principal Investments as at 31 March 2020
Country Valuation % of
Company Sector of listing GBP'000 portfolio
---------------------- --------------------------------- ------------- ------------- -------------
LafargeHolcim Construction & Materials Switzerland 18,722 7.4
Nestlé Food Producers Switzerland 13,616 5.3
UPM-Kymmene Forestry & Paper Finland 10,421 4.1
Roche Pharmaceuticals & Biotechnology Switzerland 10,171 4.0
ASML Technology Hardware & Equipment Netherlands 9,667 3.8
SAP Software & Computer Services Germany 9,213 3.6
Novartis Pharmaceuticals & Biotechnology Switzerland 7,812 3.1
Grifols Pharmaceuticals & Biotechnology Spain 7,496 3.0
Health Care Equipment &
Philips Services Netherlands 7,236 2.9
TELE2 Mobile Telecommunications Sweden 6,953 2.7
----------- ------------
10 largest 101,307 39.9
----------- ------------
AKZO Nobel Chemicals Netherlands 6,907 2.7
Novo-Nordisk Pharmaceuticals & Biotechnology Denmark 6,663 2.6
Tessenderlo Chemicals Belgium 6,444 2.5
Adidas Personal Goods Germany 5,739 2.3
STMicroelectronics Technology Hardware & Equipment France 5,738 2.3
Carlsberg Beverages Denmark 5,517 2.2
Autoliv Automobiles & Parts Sweden 5,503 2.2
ASR Nederland Nonlife Insurance Netherlands 5,341 2.1
Enel Electricity Italy 5,326 2.1
Kion Industrial Engineering Germany 5,178 2.0
----------- ------------
20 largest 159,663 62.9
----------- ------------
Sandvik Industrial Engineering Sweden 5,162 2.0
Kone Industrial Engineering Finland 5,006 2.0
Volvo Industrial Transportation Sweden 4,761 1.9
Sanofi Pharmaceuticals & Biotechnology France 4,732 1.9
Deutsche Boerse Financial Services Germany 4,659 1.8
Bayer Pharmaceuticals & Biotechnology Germany 4,636 1.8
LVMH Moet Hennessy
Louis Vuitton Personal Goods France 4,377 1.7
Oil Equipment Services
SBMOffshore & Distribution Netherlands 4,323 1.7
Merck Pharmaceuticals & Biotechnology Germany 4,320 1.7
Energias de Portugal Electricity Portugal 4,309 1.7
------------ ------------
30 largest 205,948 81.1
------------ ------------
Other listed investments ( 15 stocks) 48,212 18.9
------------ ------------
Total investments at fair value 254,160 100.0
======= =======
Country of listing (as a percentage of the portfolio excluding cash)
31 March 2020 31 March 2019
% %
---------------- -------------------- --------------------
Switzerland 19.8 18.1
Germany 18.4 16.6
Netherlands 14.3 11.4
Sweden 11.3 12.3
France 9.1 7.6
Finland 7.7 7.7
Denmark 4.8 5.4
Spain 4.2 3.8
Italy 3.4 2.5
Belgium 2.6 3.0
Portugal 1.7 3.2
Norway 1.4 2.3
United Kingdom 1.3 6.1
100.0 100.0
-------------------- --------------------
Sector exposure (as a percentage of the portfolio excluding cash)
31 March 2020 31 March 2019
% %
-------------------- -------------- --------------------
Industrials 21.0 15.1
Consumer goods 20.9 28.2
Health care 20.9 20.5
Technology 12.1 9.8
Basic materials 10.5 8.6
Financials 5.2 7.2
Utilities 5.0 -
Telecommunications 2.7 2.2
Oil & gas 1.7 6.9
Consumer services - 1.5
100.0 100.0
-------------- --------------------
Principal Risks and Uncertainties
The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:
-- Market -- Investment performance -- Business strategy and market rating -- Gearing -- Operational -- Regulatory and reporting
Information on these risks and how they are managed is given in the Annual Report to 30 September 2019. In the view of the Board, these principal risks and uncertainties at the year-end remain and are as applicable to the remaining six months of the financial year as they were to the six months under review.
There are a number of risks stemming from the COVID-19 pandemic and the uncertainty that this has created in global markets, both economically and politically, that may impact the operation of the Company, as referenced in the Chairman's Statement. The Fund Managers will continue to review carefully the composition of the Company's portfolio and be proactive in taking investment decisions where necessary. Janus Henderson (the "Manager") and the Company's other third-party service providers remain fully operational and have implemented appropriate business continuity plans to ensure that there has been no change in service while the majority of staff are working from home.
Related Party Transactions
The Company's transactions with related parties in the period were with the directors and the Manager. There have been no material transactions between the Company and its directors during the period other than amounts paid to them in respect of expenses and remuneration for which there were no outstanding amounts payable at the period end.
In relation to the provision of services by the Manager, other than fees payable by the Company in the ordinary course of business and the facilitation of marketing activities with third parties , there have been no transactions with the Manager affecting the financial position of the Company during the period under review.
Statement of Directors' Responsibilities
The directors confirm that, to the best of their knowledge:
(a) the condensed financial statements for the half-year to 31 March 2020 have been prepared in accordance with FRS 104 Interim Financial Reporting, and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;
(b) the Interim Management Report and condensed financial statements include 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 the Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related-party transactions and changes therein).
For and on behalf of the Board
Robert Jeens
Chairman
28 May 2020
CONDENSED Income Statement
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
31 March 2020 31 March 2019 30 September 2019
Revenue Capital Total Revenue Capital Total Revenue Capital Total
return return return return return return return return return
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 - (45,235) (45,235) - (20,217) (20,217) - 8,166 8,166
Exchange
(loss)/gain
on currency
transactions - (377) (377) - 324 324 - (278) (278)
Income from
investments
(note 2) 1,819 - 1,819 2,122 - 2,122 7,550 - 7,550
Other income 11 - 11 2 - 2 14 - 14
---------------- --------- ---------- ---------- --------- --------- --------- --------- -------- ---------
Gross revenue
and capital
(losses)/gains 1,830 (45,612) (43,782) 2,124 (19,893) (17,769) 7,564 7,888 15,452
Management fees
(note 6) (226) (679) (905) (213) (640) (853) (454) (1,362) (1,816)
Other fees and
expenses (256) - (256) (279) - (279) (542) - (542)
---------------- --------- ---------- ---------- --------- --------- --------- --------- -------- ---------
Net
return/(loss)
before finance
costs and
taxation 1,348 (46,291) (44,943) 1,632 (20,533) (18,901) 6,568 6,526 13,094
Finance costs (47) (123) (170) (60) (181) (241) (124) (309) (433)
---------------- --------- ---------- ---------- --------- --------- --------- --------- -------- ---------
Net
return/(loss)
before
taxation 1,301 (46,414) (45,113) 1,572 (20,714) (19,142) 6,444 6,217 12,661
Taxation on
net return (217) - (217) (191) - (191) (677) (78) (755)
--------- ---------- ---------- --------- --------- --------- --------- -------- ---------
Net
return/(loss)
after taxation 1,084 (46,414) (45,330) 1,381 (20,714) (19,333) 5,767 6,139 11,906
--------- ---------- ---------- --------- --------- --------- --------- -------- ---------
Return/(loss)
per ordinary
share (note
3) 5.04p (215.90p) (210.86p) 6.42p (96.35p) (89.93p) 26.83p 28.55p 55.38p
--------- ---------- ---------- --------- --------- --------- --------- -------- ---------
The total columns of this statement represent the Income Statement of the Company prepared in accordance with FRS 104.
The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing operations. The Company had no recognised gains or losses other than those disclosed in the Income Statement and the Statement of Changes in Equity.
The accompanying notes are an integral part of the condensed financial statements.
CONDENSED Statement of Changes in Equity
Special
Called-up
share distributable Total
Capital
Half-year ended redemption Capital Revenue shareholders'
31 March 2020 capital reserve reserve reserve reserve funds
Share
premium Merger
account reserve
(Unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
At 30 September
2019 10,819 25,846 41,995 61,344 9,421 138,013 11,572 299,010
Net
(loss)/return
after taxation - - - - - (46,414) 1,084 (45,330)
Ordinary
dividend
paid - - - - - - (4,665) (4,665)
----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
At 31 March 2020 10,819 25,846 41,995 61,344 9,421 91,599 7,991 249,015
----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
Special
Called-up
share distributable Total
Capital
Half-year ended redemption Capital Revenue shareholders'
31 March 2019 capital reserve reserve reserve reserve funds
Share
premium Merger
account reserve
(Unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
At 30 September
2018 10,819 25,846 41,995 61,344 9,421 131,874 12,491 293,790
Net
(loss)/return
after taxation - - - - - (20,714) 1,381 (19,333)
Ordinary
dividend
paid - - - - - - (4,622) (4,622)
----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
At 31 March 2019 10,819 25,846 41,995 61,344 9,421 111,160 9,250 269,835
----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
Called-up Special Share Capital Total
Year ended 30 share distributable premium Merger redemption Capital Revenue shareholders'
September capital reserve account reserve reserve reserve reserve funds
2019 (Audited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
At 30 September
2018 10,819 25,846 41,995 61,344 9,421 131,874 12,491 293,790
Net return after
taxation - - - - - 6,139 5,767 11,906
Ordinary
dividend
paid - - - - - - (6,686) (6,686)
----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
At 30 September
2019 10,819 25,846 41,995 61,344 9,421 138,013 11,572 299,010
----------- ---------------- -------- --------- ------------ ---------- --------- ---------------
The accompanying notes are an integral part of the condensed financial statements.
CONDENSED Statement of Financial Position
(Unaudited) (Unaudited) (Audited)
31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
Fixed assets
Investments held at fair value through
profit or loss 254,160 271,837 312,880
----------- ----------- -------------
Current assets
Debtors 11,038 5,335 1,644
Cash at bank 18,174 20,090 11,807
----------- ----------- -------------
29,212 25,425 13,451
----------- ----------- -------------
Creditors: amounts falling due within
one year (34,357) (27,427) (27,321)
----------- ----------- -------------
Net current liabilities (5,146) (2,002) (13,870)
----------- ----------- -------------
Net assets 249,015 269,835 299,010
----------- ----------- -------------
Capital and reserves
Called-up share capital 10,819 10,819 10,819
Special distributable reserve 25,846 25,846 25,846
Share premium account 41,995 41,995 41,995
Merger reserve 61,344 61,344 61,344
Capital redemption reserve 9,421 9,421 9,421
Capital reserve 91,599 111,160 138,013
Revenue reserve 7,991 9,250 11,572
Total shareholders' funds 249,015 269,835 299,010
----------- ----------- -------------
Net asset value per ordinary share
(note 5) 1,158.30p 1,255.15p 1,390.86p
----------- ----------- -------------
The accompanying notes are an integral part of the condensed financial statements.
CONDENSED Cash Flow Statement
(Unaudited)
(Unaudited) Half-year (Audited)
Half-year ended ended Year ended 30
31 March 2020 31 March 2019 September 2019
GBP'000 GBP'000 GBP'000
------------------------------------------------------- --------------- ----------------
Cash flows from operating activities
Net (loss)/return before taxation (45,113) (19,142) 12,661
Add back: finance costs 170 241 433
Losses/(gains) on investments held at fair
value through profit or loss 45,235 20,217 (8,166)
Losses/(gains) on foreign exchange 377 (324) 278
Taxation paid (172) (316) (1,228)
Decrease/(increase) in debtors 25 (291) (6)
(Decrease)/increase in creditors (565) 400 588
Net cash (outflow)/inflow from operating
activities (43) 785 4,560
--------- --------------- ----------------
Cash flows from investing activities
Sales of investments held at fair value
through profit or loss 116,268 109,347 217,431
Purchases of investments held at fair value
through profit or loss (114,808) (89,741) (212,242)
Net cash inflow from investing activities 1,460 19,606 5,189
--------- --------------- ----------------
Cash flows from financing activities
Equity dividends paid (4,665) (4,622) (6,686)
Drawdown/(repayment) of bank overdraft 10,147 (29,978) (24,767)
Interest paid (155) (267) (453)
Net cash inflow/(outflow) from financing
activities 5,327 (34,867) (31,906)
--------- --------------- ----------------
Net increase/(decrease) in cash and cash
equivalents 6,744 (14,476) (22,157)
Cash and cash equivalents at beginning of
period 11,807 34,242 34,242
(Losses)/gains foreign exchange (377) 324 (278)
Cash and cash equivalents at end of period 18,174 20,090 11,807
--------- --------------- ----------------
Comprising:
Cash at bank 18,174 20,090 11,807
--------- --------------- ----------------
The accompanying notes are an integral part of these financial statements
Notes to the condensed financial statements
1. Accounting policies
The condensed set of financial statements has been prepared in accordance
with FRS 104, Interim Financial Reporting, FRS 102, the Financial
Reporting Standard applicable in the UK and Republic of Ireland and
the Statement of Recommended Practice for "Financial Statements of
Investment Trust Companies and Venture Capital Trusts", which was
updated by the Association of Investment Companies in October 2019.
For the period under review the Company's accounting policies have
not varied from those described in the Annual Report for the year
ended 30 September 2019. The condensed set of financial statements
has been neither audited nor reviewed by the Company's auditor.
2. Income from investments
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------------------- ----------------- ----------------- --------------
Listed investments:
Overseas dividends 1,712 1,901 6,983
UK dividends 107 221 567
----------------- ----------------- --------------
1,819 2,122 7,550
----------------- ----------------- --------------
3. Return/(loss) per ordinary share
(Unaudited) (Audited)
(Unaudited) Half-year Year ended
Half-year ended ended 30 September
31 March 2020 31 March 2019 2019
GBP'000 GBP'000 GBP'000
---------------------------------- ----------------- --------------- --------------
The return per ordinary share
is based on the following
figures:
Net revenue return 1,084 1,381 5,767
Net capital (loss)/return (46,414) (20,714) 6,139
----------------- --------------- --------------
Net total (loss)/return (45,330) (19,333) 11,906
----------------- --------------- --------------
Weighted average number of
ordinary shares in issue for
each period 21,498,261 21,498,261 21,498,261
----------------- --------------- --------------
Revenue return per ordinary
share 5.04p 6.42p 26.83p
Capital loss per ordinary
share (215.90p) (96.35p) 28.55p
Total (loss)/return per ordinary
share (210.86p) (89.93p) 55.38p
----------------- --------------- --------------
The Company has no securities in issue that could dilute the return
per ordinary share. Therefore, the basic and diluted returns per
share are the same.
4. Called-up share capital
At 31 March 2020, there were 21,638,991 shares in issue, of which
140,730 are held in treasury, resulting in 21,498,261 shares being
entitled to a dividend. During the half-year period ended 31 March
2020, no shares were issued or repurchased (half-year ended 31 March
2019 and year ended 30 September 2019: no shares issued or repurchased).
No shares have been issued or repurchased since 31 March 2020.
5. Net asset value per ordinary share
The net asset value per ordinary share is based on the 21,498,261
ordinary shares in issue at 31 March 2020 (half-year ended 31 March
2019 and year ended 30 September 2019: 21,498,261).
6. Management fees
Henderson Investment Funds Limited ("HIFL") is appointed to act as
the Company's alternative investment fund manager. HIFL delegates
investment management services to Henderson Global Investors Limited
("HGIL"). References to Janus Henderson or the Manager within these
results refer to the services provided by both HIFL and HGIL.
Management fees are charged in accordance with the terms of the management
agreement. The Manager receives a fee of 0.65% per annum on the value
of the Company's net assets up to GBP300m and 0.55% on any net assets
above GBP300m calculated quarterly in arrears. In determining the
net assets on which the management fee is calculated, the value of
any securities held by the Company in collective investment schemes
managed by Janus Henderson are excluded.
Management fees and finance costs are allocated 25% to revenue and
75% to capital in the Condensed Income Statement.
7. Investments held at fair value through profit or loss
The table below analyses fair value measurements for investments
held at fair value through profit or loss. These fair value measurements
are categorised into different levels in the fair value hierarchy
based on the valuation techniques used and are defined as follows
under FRS 102:
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.
Financial assets held at fair Level 1 Level 2 Level 3 Total
value through profit or loss GBP'000 GBP'000 GBP'000 GBP'000
at 31 March 2020
------------------------------- --------- --------- --------- ---------
Quoted equities 254,160 - - 254,160
Total 254,160 - - 254,160
Financial assets held at fair Level 1 Level 2 Level 3 Total
value through profit or loss GBP'000 GBP'000 GBP'000 GBP'000
at 31 March 2019
------------------------------- --------- --------- --------- ---------
Quoted equities 271,837 - - 271,837
Total 271,837 - - 271,837
Financial assets held at fair Level 1 Level 2 Level 3 Total
value through profit or loss GBP'000 GBP'000 GBP'000 GBP'000
at 30 September 2019
------------------------------- --------- --------- --------- ---------
Quoted equities 312,880 - - 312,880
Total 312,880 - - 312,880
There have been no transfers between levels of fair value hierarchy
during the period.
The valuation techniques used by the Company are explained in the
accounting policies note 1(c) in the Company's Annual Report for
the year ended 30 September 2019.
8. Borrowings
As at 31 March 2020, the Company's bank overdraft included in 'Creditors:
amounts falling due within one year' was GBP33,196,000 (31 March
2019: GBP17,838,000; 30 September 2019: GBP23,049,000).
9. Going concern
The assets of the Company consist of securities that are readily
realisable and, accordingly, the directors believe that the Company
has adequate resources to continue in operational existence for at
least twelve months from the date of approval of these financial
statements. This conclusion also takes into account the Board's assessment
of the risks arising from COVID-19.
10. Dividends
The directors have declared an interim dividend of 9.60p per ordinary
share (2019: 9.60p), payable on 26 June 2020 to shareholders on the
register on 5 June 2020. The shares will be quoted ex-dividend on
4 June 2020. Based on the 21,498,261 ordinary shares in issue as
at 28 May 2020, the cost of this dividend will be GBP2,064,000 (cost
of 2019 interim dividend: GBP2,064,000).
11. 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 31 March 2020 and 31 March 2019 has not been audited or reviewed
by the Company's auditor. The figures and financial information for
the year ended 30 September 2019 are an extract based on the latest
published accounts and do not constitute statutory accounts for that
year. Those accounts have been delivered to the Registrar of Companies
and included the Independent Auditor's Report which was unqualified
and did not contain a statement under either s498(2) or s498(3) Companies
Act 2006. A glossary of terms and details of alternative performance
measures can be found in the Annual Report for the year ended 30
September 2019.
12. General information
Company status
Henderson European Focus Trust plc is registered in England and Wales
(no. 427958), has its registered office at 201 Bishopsgate, London
EC2M 3AE and is listed on the London Stock Exchange.
SEDOL/ISIN: 0526885/GB0005268858
London Stock Exchange ("TIDM") code: HEFT
Global Intermediary Identification Number ("GIIN"): THMNPN.99999.SL.826
Legal Entity Identifier ("LEI") number: 213800GS89AL1DK3IN50
Directors and secretary
The directors of the Company are Robert Jeens (Chairman), Eliza Dungworth
(Chairman of the Audit Committee), Robin Archibald and Vicky Hastings
(Senior Independent Director). The corporate secretary is Henderson
Secretarial Services Limited.
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.hendersoneuropeanfocus.com .
13. Half-year report
The half-year report will shortly be available on the Company's website
or from the Company's registered office. An abbreviated version,
the 'Update', will be posted to shareholders in June 2020. The Update
will also be posted on the Company's website, and hard copies will
be available from the Company's registered office.
For further information, please contact:
James de Sausmarez Director and Head of Investment Trusts Henderson Investment Funds Limited Tel: 020 7818 3349
Laura Thomas
Investment Trust PR Manager
Janus Henderson Investors
Tel: 020 7818 2636
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 form part of, this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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May 28, 2020 11:10 ET (15:10 GMT)
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