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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Henderson International Income Trust Plc | LSE:HINT | London | Ordinary Share | GB00B3PHCS86 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 163.50 | 164.00 | 167.50 | 65,242 | 09:38:32 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Unit Inv Tr, Closed-end Mgmt | 8.55M | 3.19M | 0.0163 | 100.31 | 320.43M |
From Apr 2019 to Apr 2024
TIDMHINT
RNS Number : 8613W
Henderson Intl. Income Trust PLC
23 April 2019
LEGAL ENTITY IDENTIFIER: 2138006N35XWGK2YUK38
23 April 2019
HERSON INTERNATIONAL INCOME TRUST PLC
Unaudited results for the half-year ended 28 February 2019
This announcement contains regulated information
Investment objective
The Company's investment objective is to provide shareholders with a growing total annual dividend, as well as capital appreciation.
Performance highlights for the six months to 28 February 2019
-- The first interim dividend payment for the year ending 31 August 2019 of 1.40p per ordinary share
was paid to shareholders on 28 February 2019. A second interim dividend payment for the year ending
31 August 2019 of 1.40p per ordinary share has been declared and will be paid to shareholders on
31 May 2019. The dividend will be paid from the Company's revenue account.
-- The net asset value per share as at 28 February 2019 was 152.87p compared to 167.11p as at
31 August 2018.
-- The premium as at 28 February 2019 was 1.9% compared to a premium of 0.2% as at 31 August 2018.
Total return performance (including dividends reinvested and excluding transaction costs)
Hot Features
Premium
6 months 1 year 3 years Since launch
% % % %
------------------- --------- --------------------- -------- -----------------------
NAV(1) -6.9 -2.1 38.4 105.5(5)
Sector average(2) -3.9 -0.9 43.9 95.6
Benchmark(3) -5.5 4.8 54.0 138.3
Share price(4) -5.3 -0.9 51.2 105.0
(1) Calculated using published daily NAVs including current year revenue
(2) The AIC Global Equity Income sector based on NAV
(3) MSCI World (ex UK) Index (sterling adjusted)
(4) Using mid-market share price
(5) Incorporating the dilution resulting from the impact of the subscription shares which were exercised on
31 August 2014
Sources: AIC, Morningstar Direct, Janus Henderson and Datastream
INTERIM MANAGEMENT REPORT
CHAIRMAN'S STATEMENT
Performance and markets
During the six months to 28 February 2019, the net asset value ('NAV') total return per ordinary share was
-6.9%. The Company's return on the ordinary share price (on the same basis) was -5.3%. In comparison, the Company's benchmark total return was -5.5% (MSCI World (ex UK) Index (sterling adjusted)).
It has been a volatile period for equity markets. There has been mounting uncertainty regarding the impact on economic growth of ongoing trade negotiations between the US and China on economic growth and business confidence, particularly against a backdrop of slowing economic growth in some parts of the world. For much of the period under review the indications from Central Banks were that they believed conditions merited the withdrawal of monetary stimulus extended in recent years. The combination of these factors led to a sharp, broad, equity market sell off in December. Recent communications from the US and European central banks suggests that they are acknowledging weaker economic data and delaying any further monetary tightening, which has been positive for investor sentiment and equity markets have recovered some of their losses as a result.
The Company's holdings have been impacted by this volatility, but have been recovering since the start of the year. The investment team have taken advantage of the disruption to invest in companies they believe have good long-term growth and income potential.
Currency can have an impact on the Company's performance as it reports in sterling but has no sterling assets. Over the period, the pound strengthened slightly against a number of overseas currencies which was a slight drag on total returns. Volatility is expected to continue while Brexit uncertainty remains.
Earnings and dividends
The revenue return per ordinary share during the six months to 28 February 2019 was 1.59p. A fourth interim dividend of 1.40p per ordinary share, for the year ended 31 August 2018, was paid to shareholders on 30 November 2018, bringing the total dividend paid in respect of the year ended 31 August 2018 to 5.30p per ordinary share (year ended 31 August 2017: 4.90p per ordinary share).
The board declared a first interim dividend payment for the year ending 31 August 2019 of 1.40p per ordinary share and this was paid to shareholders on 28 February 2019. Subsequently, we have declared a second interim dividend of 1.40p per ordinary share that will be paid to shareholders on 31 May 2019. The board continues to monitor the level of dividend paid out to shareholders and aims to maintain the same level of dividend for the remaining six months of this financial year.
Gearing
Well-judged gearing enhances returns to shareholders. The board's current policy is to permit the fund manager to gear up to 25% of net assets at the time of drawdown or investment, as appropriate. Borrowing limits for this purpose include implied gearing through the use of derivatives. The gearing at the period end was 2.0% (31 August 2018: 1.9%). In order to take advantage of the fall in long-term interest rates, the Company has agreed to enter into fixed rate borrowings of EUR30,000,000 for 25 years at a rate of 2.43%.
Discount control
The Company's share price has traded close to its NAV over the period. The board continues to monitor the premium/discount to NAV and will consider appropriate action if the relationship between NAV and share price moves and remains out of line with the Company's peer group. However, there is a distinct limit to the board's ability to influence the premium or discount to NAV. Accordingly, we believe it is not in shareholders' interests to have a specific share issuance or buy-back policy. We believe that it is sensible to retain flexibility; therefore, we shall consider share issuance and/or buy-backs where appropriate and subject to market conditions.
Material events and transactions during the period
A total of 400,000 new shares were issued in the six months to 28 February 2019 and the proceeds were added to the portfolio. Since the period end a further 600,000 new shares have been issued.
Corporate transaction
The board were pleased to announce on 12 April 2019 that terms had been agreed in principle for the Company to be the default rollover option on the liquidation of The Establishment Investment Trust plc ("EIT").
The proposed transaction is to be effected by way of a tax efficient liquidation of EIT under section 110 of the Insolvency Act. A circular to shareholders of the Company convening a general meeting, at which enabling resolutions will be put forward, will be published in due course.
It has been our ongoing ambition to build on the successful performance of the Company by growing through equity issuance. Since launch in 2011 we have grown the assets of the Company more than seven-fold by a combination of good investment performance, trust merger and the issue of shares from time to time to meet demand. We very much appreciate the opportunity to continue our growth by way of this proposed transaction and to welcoming new shareholders.
Outlook
In the absence of positive economic data, political events continue to preoccupy investors' minds. Whilst this is understandable, some sectors and equity markets have started to price in these concerns. Timing market movements in the short term is a notoriously difficult process, but for patient investors with longer time horizons, periods of uncertainty often provide good investment opportunities. We are hopeful that this is one of those times and have taken advantage of the collapse in bond yields to secure low financing rates, significantly below the dividend yields offered by the Company's portfolio.
Simon Jeffreys
Chairman
23 April 2019
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:
-- Investment activity and performance risks;
-- Portfolio and market price risks;
-- Tax and regulatory risks; and
-- Operational risks.
Information on these risks and how they are managed is given in the annual report to 31 August 2018. In the view of the board, these principal risks and uncertainties were unchanged over the last six months and are as applicable to the remaining six months of the financial year as they were to the six months under review.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm that, to the best of their knowledge:
(a) the financial statements for the half-year ended 28 February
2019 have been prepared in accordance with 'FRS 104 Interim
Financial Reporting';
(b) the Interim Management Report includes a fair review of the
information required by Disclosure Guidance and Transparency
Rule 4.2.7R (indication of important events during the first
six months and description of principal risks and uncertainties
for the remaining six months of the year); and
(c) the Interim Management Report includes a fair review of the
information required by Disclosure Guidance and Transparency
Rule 4.2.8R (disclosure of related party transactions and changes
therein).
For and on behalf of the board
Simon Jeffreys
Chairman
23 April 2019
For more information please contact:
Ben Lofthouse Laura Thomas Fund Manager Investment Trust PR Manager Henderson International Income Janus Henderson Investors Trust plc Tel: 020 7818 2636 Telephone: 020 7818 5187 James de Sausmarez Director and Head of Investment Trusts Janus Henderson Investors Telephone: 020 7818 3349
FUND MANAGER'S REPORT
Performance review
The portfolio produced a total return of -6.9% in net asset value ('NAV') per ordinary share over the period. This included dividends totalling 2.80p per share, which increased by 7.7% as compared to the same period in 2018.
The Company's investment process focuses on companies with attractive dividend yields, strong cash flow generation, and the potential to grow both earnings and distributions in the future. Income from the portfolio during the period has remained robust and the majority of companies have increased or maintained their dividends. Dividend growth has been widely spread across sectors and regions. Examples of large increases in dividends include Italian utility Enel (14% year-on-year increase in payment for the period), US bank JP Morgan (43%) and technology companies Microsoft (10%) and Cisco (6%). Dividend growth is mainly being driven by earnings growth, but there is still some 'normalisation' of dividend payout ratios post the financial crisis. The financial sector is the most obvious example of this normalisation; it has taken many years of regulatory change before some companies feel comfortable about increasing payouts, and in some cases for regulators to be comfortable to allow this. The large dividend increase by JPMorgan is an example of this. The other sector that has returned to growth after an earnings shock is the oil sector; Chevron increased its quarterly dividend by 6% and Total by 3%.
The investment team's objective is to provide investors with an attractive, rising level of dividends and capital appreciation over the long-term. Dividend growth from the portfolio has been excellent over the period but capital performance has been negative. The Chairman has discussed some of the drivers of the market volatility in his statement. Given the economic concerns it is not surprising that the more defensive stocks and sectors performed best. Italian utility Enel, and telecommunication companies Tele2 and HK Trust were the largest positive contributors to performance. Some of the portfolio's technology stocks were also strong performers, including long-term holding Cisco, which reported good results, and new additions last year BE Semiconductor and Lam Research. The semiconductor sector was one of the first sectors to be impacted by trade and growth concerns last year. We believe the industry is a long-term beneficiary of technology changes and took advantage of the weakness to add these names. Lower economic growth expectations resulted in lower interest rate expectations, which impacted sentiment regarding the outlook for some of the Company's financial holdings. We continue to see considerable long-term capital potential in the sector, but have refined the holdings list and reduced the exposure over the period in response to the change in economic conditions.
Portfolio positioning
The geographic weightings of the portfolio have not changed significantly over the period, but there have been a few portfolio changes within regions and sectors. Profits were taken in positions including private equity company Blackstone, and US electronic retailer Best Buy, which have both appreciated considerably since initial purchase. Volatility in the credit market during December highlighted the vulnerability of companies with debt on their balance sheets. Whilst the credit market has stabilised significantly since the year-end, we have taken advantage of this to close some positions in companies that could be vulnerable to further volatility, such as retailers Hanesbrands and CVS. New positions initiated included pharmaceutical company Sanofi, whose valuation does not reflect its portfolio or the potential impact of new management's cost savings, leader in the semiconductor equipment industry Lam Research, and Chinese cement manufacturer Anhui Conch, a beneficiary of government supply side reforms focused on industry efficiency and environmental concerns.
Ben Lofthouse
Fund Manager
23 April 2019
INVESTMENT PORTFOLIO
at 28 February 2019
Market value %
Company Country GBP'000 of portfolio
-------------------------------------- ------------- ------------- --------------
Basic materials
BASF Germany 5,979 2.2
Nutrien Canada 4,197 1.5
DowDuPont US 3,979 1.4
Indorama Ventures Thailand 3,421 1.2
UPM-Kymmene Finland 2,750 1.0
20,326 7.3
------------- --------------
Consumer goods
Nestlé Switzerland 8,909 3.2
Coca-Cola US 6,879 2.5
Anta Sports China 4,247 1.5
Samsung Korea 3,558 1.3
Hasbro US 3,427 1.2
Treasury Wine Estates Australia 3,148 1.1
Dali Foods China 3,044 1.1
General Motors US 1,486 0.6
34,698 12.5
------------- --------------
Consumer services
Royal Caribbean Cruises US 4,810 1.7
Sabre US 2,735 1.0
Las Vegas Sands US 2,728 1.0
10,273 3.7
------------- --------------
Financials
AXA France 5,654 2.0
ING Netherlands 5,189 1.9
Manulife Financial Canada 4,833 1.7
Bawag Austria 4,262 1.5
Nordea Sweden 4,077 1.5
E. Sun Taiwan 3,691 1.3
Van Lanschot Netherlands 3,650 1.3
United Overseas Singapore 3,585 1.3
Macquarie Australia 3,193 1.2
Swedbank Sweden 3,156 1.1
Mitsubishi Financial Japan 3,091 1.1
BNP Paribas France 2,925 1.1
Banca Farmafactoring Italy 2,870 1.0
Allianz Germany 2,739 1.0
JP Morgan Chase US 2,183 0.8
Natixis France 1,642 0.6
Société Générale France 1,630 0.6
58,370 21.0
------------- --------------
Health care
Pfizer US 6,881 2.5
Roche Switzerland 6,136 2.2
Novartis Switzerland 6,128 2.2
Sanofi France 3,469 1.2
Medtronic US 3,283 1.2
------------- --------------
25,897 9.3
------------- --------------
Industrials
Siemens Germany 4,974 1.8
Jiangsu Expressway China 3,901 1.4
ABB Switzerland 3,666 1.3
Anhui Conch China 3,356 1.2
Amcor Australia 3,343 1.2
Prosegur Cash Spain 2,689 1.0
Watsco US 2,380 0.9
Deutsche Post Germany 1,815 0.6
26,124 9.4
------- ----
Oil & gas
Chevron US 7,172 2.6
Total France 4,772 1.7
China Petroleum and Chemical China 4,188 1.5
Occidental US 3,589 1.3
Vermilion Canada 3,438 1.3
23,159 8.4
-------- ------
Property
Crown Castle US 3,946 1.4
Eurocommercial Netherlands 2,962 1.1
Mapletree North Asia Singapore 2,713 1.0
Scentre Australia 2,499 0.9
Cyrusone US 1,534 0.5
Nexity France 871 0.3
14,525 5.2
-------- --------
Technology
Microsoft US 12,212 4.4
Cisco Systems US 6,728 2.4
Taiwan Semiconductor Manufacturing Taiwan 5,455 2.0
LAM Research US 3,352 1.2
Maxim US 2,792 1.0
ASML Netherlands 2,582 1.0
BE Semiconductor Netherlands 1,994 0.7
35,115 12.7
-------- --------
Telecommunications
Verizon Communications US 5,475 2.0
Tele2 Sweden 4,766 1.7
HKT Trust and HKT Ltd Hong Kong 4,179 1.5
Orange France 3,656 1.3
SK Telecom Korea 3,454 1.2
Spark New Zealand New Zealand 3,209 1.2
24,739 8.9
-------- --------
Utilities
Enel Italy 4,380 1.6
4,380 1.6
-------- --------
Total investments 277,606 100.0
-------- --------
TEN LARGEST INVESTMENTS
at 28 February 2019
Market value
GBP'000 % of portfolio
Company Sector Country
--------------- ----------------- ------------- --------------- -----------------
Microsoft Technology US 12,212 4.4
Nestlé Consumer goods Switzerland 8,909 3.2
Chevron Oil & gas US 7,172 2.6
Pfizer Health care US 6,881 2.5
Coca-Cola Consumer goods US 6,879 2.5
Cisco Systems Technology US 6,728 2.4
Roche Health care Switzerland 6,136 2.2
Novartis Health care Switzerland 6,128 2.2
BASF Basic materials Germany 5,979 2.2
AXA Financials France 5,654 2.0
These investments total GBP72,678,000 which represents 26.2% of the portfolio.
Sector exposure as a percentage of the investment portfolio excluding cash
28 February 2019 31 August 2018
% %
-------------------- ----------------- ---------------
Financials 21.0 22.1
Technology 12.7 13.6
Consumer goods 12.5 12.1
Industrials 9.4 7.3
Health care 9.3 6.7
Telecommunications 8.9 9.3
Oil & gas 8.4 9.7
Basic materials 7.3 7.4
Property 5.2 5.8
Consumer services 3.7 4.8
Utilities 1.6 1.2
100.0 100.0
----------------- ---------------
Geographic exposure as a percentage of the investment portfolio excluding cash
28 February 2019 31 August 2018
% %
------------- ----------------- ---------------
US 31.6 32.7
Switzerland 8.9 8.8
France 8.8 7.2
China 6.7 6.9
Netherlands 6.0 6.4
Germany 5.6 6.6
Canada 4.5 4.4
Australia 4.4 2.9
Sweden 4.3 4.0
Taiwan 3.3 4.3
Italy 2.6 2.2
Korea 2.5 2.5
Singapore 2.3 0.8
Austria 1.5 1.1
Hong Kong 1.5 1.2
Thailand 1.2 1.2
New Zealand 1.2 1.1
Japan 1.1 1.2
Finland 1.0 1.5
Spain 1.0 0.9
Malaysia - 1.3
Denmark - 0.8
100.0 100.0
----------------- ---------------
Source: Janus Henderson
CONDENSED INCOME STATEMENT
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
28 February 2019 28 February 2018 31 August 2018
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- --------- ---------- -------- --------- ---------- --------- --------- ----------
(Losses)/gains
on investments
held at fair
value
through profit
or loss - (22,429) (22,429) - (148) (148) - 7,481 7,481
Income from
investments
held at fair
value
through profit
or loss 3,633 - 3,633 3,614 - 3,614 12,500 - 12,500
(Losses)/gains
on foreign
exchange - (31) (31) - 23 23 - 85 85
Other income 2 - 2 44 - 44 220 - 220
-------- --------- ---------- -------- --------- ---------- --------- --------- ----------
Gross revenue
and
capital
(losses)/gains 3,635 (22,460) (18,825) 3,658 (125) 3,533 12,720 7,566 20,286
Management fee
(note 3) (218) (654) (872) (228) (683) (911) (458) (1,374) (1,832)
Other
administrative
expenses (264) - (264) (277) - (277) (559) - (559)
-------- --------- ---------- -------- --------- ---------- --------- --------- ----------
Net return
before
finance costs
and
taxation 3,153 (23,114) (19,961) 3,153 (808) 2,345 11,703 6,192 17,895
Finance costs (5) (14) (19) (8) (21) (29) (25) (31) (56)
-------- --------- ---------- -------- --------- ---------- --------- --------- ----------
Net return
before
taxation 3,148 (23,128) (19,980) 3,145 (829) 2,316 11,678 6,161 17,839
Taxation on
net
return (315) - (315) (493) 4 (489) (1,456) 3 (1,453)
-------- --------- ---------- -------- --------- ---------- --------- --------- ----------
Net return
after
taxation (note
5) 2,833 (23,128) (20,295) 2,652 (825) 1,827 10,222 6,164 16,386
======== ========= ========== ======== ========= ========== ========= ========= ==========
Return per
ordinary
share (note 5) 1.59p (13.01)p (11.42)p 1.51p (0.47)p 1.04p 5.80p 3.50p 9.30p
======== ========= ========== ======== ========= ========== ========= ========= ==========
The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.
The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity.
All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.
The accompanying notes are an integral part of the condensed financial statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called
up Share Other
share premium Special capital Revenue
Half-year ended 28 capital account reserve reserves reserve Total
February 2019 (unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ---------- ---------- ---------- ----------- ---------- ----------
At 31 August 2018 1,776 164,631 45,732 77,819 6,790 296,748
New shares allotted
(note 9) 4 608 - - - 612
Net return after taxation - - - (23,128) 2,833 (20,295)
Dividends paid (note
6) - - - - (4,978) (4,978)
As at 28 February
2019 1,780 165,239 45,732 54,691 4,645 272,087
---------- ---------- ---------- ----------- ---------- ----------
Called
up Share premium Other
share account Special capital Revenue
Half-year ended 28 capital GBP'000 reserve reserves reserve Total
February 2018 (unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ---------- ---------------- ---------- ----------- ---------- ----------
At 31 August 2017 1,742 159,102 45,732 71,655 5,741 283,972
New shares allotted 23 3,780 - - - 3,803
Net return after taxation - - - (825) 2,652 1,827
Dividends paid - - - - (4,566) (4,566)
As at 28 February
2018 1,765 162,882 45,732 70,830 3,827 285,036
---------- ---------------- ---------- ----------- ---------- ----------
Called
up Share Other
share premium Special capital Revenue
Year ended 31 August capital account reserve reserves reserve Total
2018 (audited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- ---------- ----------- ---------- ----------
At 31 August 2017 1,742 159,102 45,732 71,655 5,741 283,972
New shares allotted 34 5,529 - - - 5,563
Net return after taxation - - - 6,164 10,222 16,386
Dividends paid - - - - (9,173) (9,173)
As at 31 August 2018 1,776 164,631 45,732 77,819 6,790 296,748
---------- ---------- ---------- ----------- ---------- ----------
The accompanying notes are an integral part of the financial statements.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
As at As at As at
28 February 28 February 31 August
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------------------------------ --------------------------------- ------------------------ --------------
Investments held at fair value
through profit or loss (note 4)
Fixed asset investments held at
fair value through profit or loss 277,606 287,231 302,416
Current assets
Debtors 6,080 788 1,420
Cash at bank 979 - -
--------------------------------- ------------------------ --------------
7,059 788 1,420
Creditors: amounts falling due
within one year (12,578) (2,983) (7,088)
--------------------------------- ------------------------ --------------
Net current liabilities (5,519) (2,195) (5,668)
--------------------------------- ------------------------ --------------
Total net assets 272,087 285,036 296,748
================================= ======================== ==============
Capital and reserves
Called up share capital (note 9) 1,780 1,765 1,776
Share premium account 165,239 162,882 164,631
Special reserve 45,732 45,732 45,732
Other capital reserves 54,691 70,830 77,819
Revenue reserve 4,645 3,827 6,790
--------------------------------- ------------------------ --------------
Total shareholders' funds 272,087 285,036 296,748
================================= ======================== ==============
Net asset value per ordinary share
- basic and diluted (note 7) 152.9p 161.5p 167.1p
================================= ======================== ==============
The accompanying notes are an integral part of the financial statements.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
Half-year (Unaudited) (Audited)
ended Half-year ended Year ended
28 February 28 February 31 August
2019 2018 2018
GBP'000 GBP'000 GBP'000
--------------------------------------- -------------- ------------------ -------------
Cash flows from operating activities
Net return before taxation (19,980) 2,316 17,839
Add back: finance costs 19 29 56
Add: gains/(losses) on investments
held at fair value through profit
or loss 22,429 148 (7,481)
Add: gain/(loss) on foreign exchange 31 (23) (85)
Withholding tax on dividends deducted
at source (413) (432) (1,617)
Taxation recovered 4 12 55
Decrease in debtors 223 519 386
Increase/(decrease) in creditors 376 431 (9)
-------------- ------------------ -------------
Net cash inflow from operating
activities 2,689 3,000 9,144
Cash flows from investing activities
Purchase of investments (38,461) (61,833) (123,621)
Sale of investments 47,393 53,419 107,765
-------------- ------------------ -------------
Net cash inflow/(outflow) from
investing activities 8,932 (8,414) (15,856)
Cash flows from financing activities
Equity dividends paid (net of refund
of unclaimed distributions and
reclaimed distributions) (4,978) (4,566) (9,173)
Proceeds from issue of ordinary
shares 612 3,803 5,530
Interest paid (18) (28) (56)
-------------- ------------------ -------------
Net cash outflow from financing
activities (4,384) (791) (3,699)
-------------- ------------------ -------------
Net increase/(decrease) in cash
and cash equivalents 7,237 (6,205) (10,411)
Cash and cash equivalents at start
of year (6,227) 4,099 4,099
Effect of foreign exchange rates (31) 23 85
-------------- ------------------ -------------
Cash and cash equivalents at end
of year 979 (2,083) (6,227)
-------------- ------------------ -------------
Comprising:
Cash at bank 979 - -
Bank overdraft - (2,083) (6,227)
-------------- ------------------ -------------
979 (2,083) (6,227)
-------------- ------------------ -------------
The accompanying notes are an integral part of the financial statements.
NOTES TO THE FINANCIAL STATEMENTS
The half-year financial statements cover the period from 1 September 2018 to 28 February 2019.
1. Principal activity
The Company is an investment company as defined in section 833 of
the Companies Act 2006 and operates as an investment trust in accordance
with section 1158 of the Corporation Tax Act 2010.
2. Accounting policies - basis of preparation
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 February
2018 with consequential amendments.
For the period under review the Company's accounting policies have
not varied from those described in the annual report for the year
ended 31 August 2018. The condensed set of financial statements
has been neither audited nor reviewed by the Company's auditor.
3. Management fee
The management fee is payable quarterly in arrears at the rate of
0.65% per annum of the Company's net assets up to GBP250 million
and the rate reduces to 0.60% per annum of net assets in excess
of GBP250 million. In accordance with the directors' policy on the
allocation of expenses between income and capital, in each financial
year 75% of the management fee payable is charged to capital and
the remaining 25% to income.
4. 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: Valued using quoted prices in active markets for identical
assets.
Level 2: Valued by reference to valuation techniques using observable
inputs other than quoted prices included in level 1.
Level 3: Valued by reference to valuation techniques using inputs
that are not based on observable market data. Financial assets at fair value through profit
or loss at 28 February 2019
Level Level Level
1 2 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- --------
Equity investments 277,606 - - 277,606
Total financial assets carried at
fair value 277,606 - - 277,606
-------- -------- -------- --------
Financial assets at fair value through profit
or loss at 28 February 2018
Level Level Level
1 2 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- --------
Equity investments 287,231 - - 287,231
Total financial assets carried at
fair value 287,231 - - 287,231
-------- -------- -------- --------
Financial assets at fair value through profit
or loss at 31 August 2018
Level Level Level
1 2 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- --------
Equity investments 302,416 - - 302,416
Total financial assets carried at
fair value 302,416 - - 302,416
-------- -------- -------- --------
There have been no transfers between levels of the fair value hierarchy
during the period.
5. Return per ordinary share
(Unaudited) (Unaudited)
Half-year Half-year (Audited)
ended ended Year ended
28 February 28 February 31 August
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------------------------------- ------------- ------------- ------------
The return per ordinary share
is based on the following figures:
Revenue return 2,833 2,652 10,222
Capital return (23,128) (825) 6,164
------------- ------------- ------------
Total (20,295) 1,827 16,386
============= ============= ============
Weighted average number of
ordinary shares in issue for
each period 177,689,593 175,268,875 176,164,731
Revenue return per ordinary
share 1.59p 1.51p 5.80p
Capital return per ordinary
share (13.01)p (0.47)p 3.50p
------------- ------------- ------------
Total return per ordinary share (11.42)p 1.04p 9.30p
============= ============= ============
The Company does not have any dilutive securities, therefore, the basic and diluted returns per share are
the same.
6. Dividends
GBP'000
---------
Fourth interim dividend of 1.40p for the year
ended 31 August 2018
(paid 30 November 2018) 2,486
First interim dividend of 1.40p for the year ending
31 August 2019
(paid 28 February 2019) 2,492
---------
Total 4,978
---------
The board has declared a second interim dividend of 1.40p per ordinary
share to be paid on 31 May 2019 to shareholders registered at the
close of business on 10 May 2019. The shares will be quoted ex-dividend
on 9 May 2019.
7. Net asset value per ordinary share
The net asset value per ordinary share as at 28 February 2019 is
calculated on the net assets attributable to shareholders funds
of GBP272,087,000 (28 February 2018: GBP285,036,000; 31 August
2018: GBP296,748,000) and on 177,981,306 ordinary shares in issue
as at 28 February 2019 (28 February 2018: 176,531,306; 31 August
2018: 177,581,306).
8. Bank overdraft
At 28 February 2019, the Company had an overdraft facility with
HSBC Bank plc which was not utilised (28 February 2018: GBP2,083,000;
31 August 2018: GBP6,227,000).
9. Called up share capital
Nominal
value
Number of shares in issue GBP'000
--------------------------------------- ---------------------------- ---------
Ordinary shares of 1p each
In issue at start of year 177,581,306 1,776
Allotment of new shares in the period 400,000 4
---------------------------- ---------
As at 28 February 2019 177,981,306 1,780
---------------------------- ---------
During the half-year to 28 February 2019, the Company issued 400,000
ordinary shares for a total consideration of GBP612,000 (28 February
2018: GBP3,803,000; 31 August 2018: GBP5,530,000 in addition, GBP33,000
was written back following the removal of a provision for issue
costs relating to the issue of C shares which was not utilised)
after deduction of issue costs.
Since the period end and up to 23 April 2019 the Company has issued
600,000 shares for net proceeds of GBP942,000.
10. Related party transactions
The Company's transactions with related parties in the period under
review were with its directors and the Manager. There have been
no material transactions between the Company and its directors
during the half year and the only amounts paid to them were in
respect of expenses and remuneration for which there were no outstanding
amounts payable at the half year end. Directors' shareholdings
are disclosed in the annual report.
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 material transactions with the Manager affecting
the financial position of the Company during the half year under
review.
11. 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 the financial
statements. Having assessed these factors and the principal risks,
the board has determined that it is appropriate for the financial
statements to be prepared on a going concern basis.
12. Subsequent events
Subsequent to the period end, the Company has agreed to enter into
long-term fixed rate borrowings of EUR30,000,000 for 25 years at
a rate of 2.43%.
The Company announced on 12 April 2019 that terms have been agreed
in principle for the Company to be the default rollover option
on the liquidation of The Establishment Investment Trust plc ("EIT").
The proposed transaction is to be effected by way of a tax efficient
liquidation of EIT under section 110 of the Insolvency Act. A circular
to shareholders of the Company convening a general meeting, at
which enabling resolutions will be put forward, will be published
in due course.
13. Comparative information
The financial information contained in this half-year report does
not constitute statutory accounts as defined in section 434 of
the Companies Act 2006. The figures and financial information for
the year ended 31 August 2018 are extracted from the latest published
accounts and do not constitute the statutory accounts for that
year. Those accounts have been delivered to the Registrar of Companies
and included the report of the independent auditor, which was unqualified
and did not include a statement under either section 498(2) or
498(3) of the Companies Act 2006.
14. Half-year report
The half-year report will shortly be available on the Company's
website (www.hendersoninternationalincometrust.com) or in hard
copy from the Company's registered office. An abbreviated version
of this half-year report, the 'Update', will be circulated to shareholders
in early May 2019.
15. General information
Company status
Registered as an investment company in England and Wales.
London Stock Exchange (TIDM) Code: HINT
SEDOL/ISIN number: Ordinary shares B3PHCS8/GB00B3PHC586
Global Intermediary Identification Number (GIIN) is WRGF5X.99999.SL.826
Legal Entity Identifier (LEI): 2138006N35XWGK2YUK38
Registered office
201 Bishopsgate, London EC2M 3AE
Company registration number
7549407
Directors
The directors of the Company are Simon Jeffreys (Chairman), Kasia
Robinski (Chairman of the Audit Committee), William Eason, Richard
Hills and Aidan Lisser.
Corporate Secretary
Henderson Secretarial Services Limited, represented by Alix Nicholson,
ACIS.
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.hendersoninternationalincometrust.com.
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
IR BLGDSIDDBGCX
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April 23, 2019 12:32 ET (16:32 GMT)
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