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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Life Settlement Assets Plc | LSE:LSAA | London | Ordinary Share | GB00BF1Q4B05 | ORD SHS USD0.01 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.625 | 1.50 | 1.75 | 1.625 | 1.625 | 1.625 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Trust,ex Ed,religious,charty | 8.85M | 599k | 0.0120 | 135.00 | 80.72M |
TIDMLSAA TIDMLSAB TIDMLSAD TIDMLSAE
RNS Number : 8533N
Life Settlement Assets PLC
27 September 2019
LIFE SETTLEMENT ASSETS PLC
LEI: 2138003OL2VBXWG1BZ27
(the "Company" or "LSA")
Half-year Announcement
Strong performance enabling a substantial maiden distribution to shareholders
LSA, a closed-ended investment company which manages portfolios of whole and fractional interests in life settlement policies issued by life insurance companies operating predominantly in the United States, is pleased to announce its unaudited half-year results for the period ended 30 June 2019.
Highlights
-- Maiden distribution - return of capital shortly after the period end of USD 21.5m paid to Shareholders of Class A, D and E -- Total maturities for the first six months amounted to USD 33.9m (HY2018: USD 20.3m), generating gains from life settlement portfolios of USD 15.6m (HY2018: loss of USD 0.7m) -- Total net income of USD 9.2m (HY2018: loss of USD 4.9m)
Movements in net assets in the six-month period
Share Class Share Class Share Class B Share Class Share Class A D E 30.06.19 31.12.18 30.06.19 31.12.18 30.06.19 31.12.18 30.06.19 31.12.18 --------- --------- --------- --------- --------- --------- --------- --------- Net assets attributable to shareholders (USD '000) 99,687 91,649 14,901 16,150 12,957 11,591 9,336 8,247 --------- --------- --------- --------- --------- --------- --------- --------- NAV per share (USD) 2.19 2.02 1.02 1.11 1.39 1.25 5.39 4.76 --------- --------- --------- --------- --------- --------- --------- --------- Closing share price (USD) 1.73 1.45 0.67 0.60 0.95 0.60 2.70 1.70 --------- --------- --------- --------- --------- --------- --------- --------- Discount to NAV 21.0% 28.1% 34.3% 45.8% 31.7% 51.9% 49.9% 64.3% --------- --------- --------- --------- --------- --------- --------- ---------
Comparison with period to 30 June 2018
Share Class Share Class Share Class B Share Class Share Class A D E 30.06.19 30.06.18 30.06.19 30.06.18 30.06.19 30.06.18 30.06.09 30.06.18 --------- ---------- ---------- --------- --------- --------- --------- --------- Total maturities (USD '000) 23,981 13,698 2,079 2,989 4,712 1,747 3,176 1,844 --------- ---------- ---------- --------- --------- --------- --------- --------- Net income from portfolio (USD '000) 13,207 410 (872) (266) 2,126 (717) 1,640 149 --------- ---------- ---------- --------- --------- --------- --------- --------- Profit/(Loss) before tax (USD '000) 8,036 (3,205) (1,248) (676) 1,366 (918) 1,090 (101) --------- ---------- ---------- --------- --------- --------- --------- ---------
Jean Medernach, Chairman of LSA, said:
"We are pleased to be able to return USD 21.5m to our shareholders shortly after the period end for Share Class A, D and E in light of sizeable maturities, continuing our long track record of returning capital to our shareholders. As maturities arise, we seek to invest and acquire suitable policies to replenish our portfolio to ensure continued growth."
Enquiries:
Acheron Capital Limited (Investment Manager)
Jean-Michel Paul
020 7258 5990
Shore Capital (Financial Adviser and Broker)
Robert Finlay
020 7408 4080
George Bayer / Kerry Higgins
Maitland Administration Services Limited
Company Secretary
Tel: 01245 209780
TB Cardew (Financial PR)
Shan Shan Willenbrock
020 7930 0777
CHAIRMAN'S STATEMENT
Introduction
On behalf of the Board, I am pleased to present our half-year results for the period ended 30 June 2019. Despite the continued economic uncertainty, the period under review was one of progress and value for our shareholders, and shortly after the period end, we were able to return capital of USD 21.5m to shareholders of Class A (LSAA), Class D (LSAD) and Class E (LSAE), which resulted from sizable maturities totalling USD 33.9m. This was our maiden distribution since we listed on the London Stock Exchange last year and in line with our policy to distribute a substantial portion of the Company's funds to shareholders.
Investment Performance
Total maturities for the first six months amounted to USD 33.9m, well above the maturities for the comparative period in 2018 (USD 20.3m) and the full year 2018 (USD 33.4m), generating gains from life settlement portfolios of USD 15.6m (compared to a loss of USD 0.7m in the period to 30 June 2018). Total net income for the half year amounted to a profit of USD 9.2m compared to a loss of USD 4.9m in the first half year 2018.
Our portfolio performance was however mixed in the period under review. The portfolio for non-HIV policies "elderly segment" performed above expectations for all Classes except Class B (LSAB). The HIV portfolio performed below expectations. This was due to policies with smaller face values maturing.
Actual to expected (A/E) ratios of each share class Non-HIV HIV --------------------- ---------- Class A 240% 85% --------------------- ---------- Class B 70% n/a --------------------- ---------- Class D 237% 4% --------------------- ---------- Class E 252% 72% --------------------- ----------
While aggregate maturities for the first six months were strong due to some large individual policies maturing, it is worth noting that LSA's performance would have been in line with projections even without these maturities.
Since the period end, the Company has been notified of a number of maturities including the most significant policy across share classes A, D and E. This policy has a face value of c. USD 15m across all Share Classes.
As maturities occur, it is important that we continue to seek and acquire additional fractional policies in the existing policies portfolio to ensure continued growth and further consolidate the ownership in these policies. In the period under review, small portfolios of fractional policies with a total face value of USD 12.6m were added for a total investment of approximately USD 1m.
Our Share Classes
LSAA's NAV per share increased to USD 2.19 (31 December 2018: USD 2.02) during the period. This can be mainly attributed to the impact of the non-HIV portfolio performing above expectations with a number of maturities occurring during the period. This was reasonably expected given the maturity profile of the segment. LSAA's NAV performance was tapered by small face value maturities in the HIV segment.
LSAB reduced to USD 1.02 (31 December 2018: USD 1.11). This is a relatively small portfolio and as such, there is a degree of concentration risk which means a low level of maturities in one year can be followed by a period of increased maturities, thereby enhancing the future income stream.
LSAD and LSAE are made up of fractional policies and have a relatively high concentration on a few lives. LSAD NAV per share rose to USD 1.39 (31 December 2018: USD 1.25) and LSAE NAV per share rose to USD 5.39 (31 December 2018: USD 4.76).
Return of Capital
Shortly after the period end the Company made a return of capital to shareholders. The Board considered a number of factors in determining the amount returned to shareholders. Appropriate levels of cash must be made available to each Share Class to fund premium payments and to preserve our portfolio of policies. In addition, cash needs to be reserved to replenish our portfolios with whole or partial policies as maturities arise to ensure continued growth. For LSAA, your Board has sought to balance the interests of selling and continuing shareholders by offering a combination of a tender offer and a dividend. In the case of the LSAD and LSAE, we decided to return cash principally by dividend given the narrow ownership of these share classes; the relatively small share buy-back programme was included to provide some stock market liquidity.
Our return of capital was structured as follows:
-- For LSAA, a special dividend totalling USD 2.5m (USD 5.50 cents per share) and a tender offer of up to USD 10m was initiated and in each case was financed out of distributable reserves created by the cancellation of the share premium account. Shareholders of LSAA were entitled to tender up to approximately 12.2 per cent of the outstanding Ordinary A Shares and the tender price was at a discount of 17.6 per cent. to the NAV per A Ordinary Share (as at 31 March 2019). The tender offer was oversubscribed and more than 70 per cent. (33,474,675 A Ordinary Shares) of the Company's A Ordinary Shares were tendered under the tender Offer. A total 5,555,555 A Ordinary Shares were validly tendered under the tender Offer. The total return of capital to shareholders of LSAA (inclusive of the special dividend and tender offer) amounted to USD 12.5m.
-- For LSAD, a special dividend totalling USD 3.5m (USD 37.66 cents per share) was paid and a share buyback programme of up to a maximum of USD 0.5m initiated and in each case was financed out of distributable reserves created on the cancellation of the share premium account. The total return of capital to shareholders of LSAD (inclusive of the special dividend and the share buyback programme) amounted to USD 4m.
-- LSAE, a special dividend totalling USD 4.5m (US 259.62 cents per share) was paid and a share buyback programme of up to a maximum of USD 0.5 million initiated, in each case to be financed out of distributable reserves created on the cancellation of the share premium account. The total return of capital to shareholders of LSAE (inclusive of the special dividend and the share buyback programme) amounted to USD 5m.
Outlook
The HIV segment of our portfolio which performed below expectations in the period under review has shown improvements. Since the period end, the Company has been notified on a number of maturities including the most significant policy across share classes A, D and E. This policy has a face value of c. USD 15m across all Share Classes.
Following this large maturity, it is expected that future cash flows will be reduced. The portfolio has performed well, but is now unbalanced, with most of the maturities in the HIV portfolio expected over a longer period. In order to address this imbalance and the associated risk, the Investment Manager has recommended that as a precautionary measure, a discount rate of 12% be used from the July 2019 NAV onwards in respect of the HIV component of the portfolio.
As a result of the maturities received and returns of capital made to shareholders after the period end, the NAV per share class at 31 August 2019 was: LSAA USD 2.30 per share, LSAB USD 1.01 per share, LSAD USD 1.15 per share and LSAE USD 3.50 per share.
The Board is cognisant of the need to re-invest and replenish its portfolio of policies. It continues to examine opportunities to acquire fractional policies at a discount and transforming them into wholly owned policies, which will also act to mitigate this concentration risk.
Having guided the Company over the course of the transition from Luxembourg to the UK I have notified the Board of my intention to step down as a Director and Chairman of the Company with effect from 1 October 2019. The Board has appointed Michael Baines as interim Chairman and has commenced a process to recruit a new director.
Jean Medernach
Chairman
27 September 2019
TRUSTS' INVESTMENT MANAGER'S REPORT
The principal activities of the Company are to support and manage portfolios of whole and partial interests in life settlement policies issued by life insurance companies operating in the United States. The Company acquires both individual life insurance policies and portfolios of such policies via either the secondary market, liquidation, bankruptcies or private placements. The life settlement market enables people to sell their life insurance policies to investors at a higher cash value than they would otherwise receive from insurance companies. An investor acquiring the life insurance policy will continue to pay the premiums until the death of the insured. The insurance company will then pay the face value of the life insurance policy to the investor.
All four share classes are listed on Specialist Fund Segment of the London Stock Exchange, with beneficial ownership of the Acheron Portfolio Trust to the A Ordinary Shares, the Lorenzo Tonti 2006 Portfolio Trust to the B Ordinary Shares, Avernus Portfolio Trust to the D Ordinary Shares, and the Styx Portfolio Trust to the E Ordinary Shares. The NAV of each share class is released monthly.
Acheron Capital Limited ("Acheron Capital" or the "Investment Manager") is responsible for devising and modelling the investment strategy of the Company's trusts. Founded in 2005, Acheron Capital is a London based independent investment manager authorised and regulated by the FCA, that focuses on niche investment strategies uncorrelated to the traditional financial markets.
The Investment Manager has:
-- An internally developed pricing policy and portfolio valuation methodologies
-- Proven actuarial model as evidenced by industry leading Actual to Expected ratios
The Life Settlement Market
The trends in life expectancy ("LE") have been fundamentally changing. The rapid improvements in LE seen in the early years of the 21st century are now a thing of the past. Since 2015, average LE in the US has gradually declined among all racial and ethnic groups, which includes declines in nearly 12 preventable diseases and conditions. Meanwhile, gaps in LE between neighbourhoods are deepening, as revealed by a new study by NYU School of Medicine. These gaps mean that residents in one neighbourhood may live 20 to 30 years longer than those just a mile away - and the inequalities are prevalent in cities with high levels of racial and ethnic segregation, such as Chicago and New York. The US is not the only country experiencing lower LE. According to data from the UK's Institute and Faculty of Actuaries (IFOA), LE for both men and women in the UK is about five months lower than that in the organisation's previous model. Also, the recent publication of the Continuous Mortality Investigation (CMI) 2018 model suggests the trend of falling life expectancies is expected to continue and by the end of 2019 assumed life expectancies will be back to levels last seen in 2009.
Portfolio
The overall portfolio is subdivided into portfolios exposed to either HIV-positive policy holders or non-HIV positive policy holders. The following table provides information on the Company's policies by Share Class and by exposure to HIV and non-HIV positive insureds in the period under review.
Share Class A HIV Non-HIV Total Number of policies 4,387 208 4,595 -------- -------- -------- Total face value (USD'000) 359,898 90,871 450,769 -------- -------- -------- Valuation (USD'000) 41,773 20,715 62,488 -------- -------- -------- Percentage of face 11.6% 22.8% 13.9% -------- -------- -------- Share Class B -------- -------- -------- Number of policies N/A 105 105 -------- -------- -------- Total face value (USD'000) N/A 54,575 54,575 -------- -------- -------- Valuation (USD'000) N/A 9,832 9,832 -------- -------- -------- Percentage of face N/A 18.0% 18.0% -------- -------- -------- Share Class D -------- -------- -------- Number of policies 374 83 457 -------- -------- -------- Total face value (USD'000) 16,498 19,154 35,652 -------- -------- -------- Valuation (USD'000) 2,484 5,200 7,684 -------- -------- -------- Percentage of face 15.1% 27.1% 21.6% -------- -------- -------- Share Class E -------- -------- -------- Number of policies 164 60 224 -------- -------- -------- Total face value (USD'000) 6,616 10,529 17,145 -------- -------- -------- Valuation (USD'000) 1,037 2,757 3,794 -------- -------- -------- Percentage of face 15.7% 26.2% 22.1% -------- -------- --------
In the first half of 2019, small portfolios of fractional policies, to which the trusts were already overwhelmingly exposed, were added. The Company gained additional exposure to 55 policies with an additional face value of USD 12.4m which were assigned to the portfolio held by Acheron Portfolio Trust. The remaining one fractional policy with a face value of USD 0.2m was allocated to Avernus Portfolio Trust.
Maturities in the period to 30 June 2019 can be seen in the table below.
Class A Class B Class D Class E HIV Maturities (USD'000) 3,300 N/A 7 62 -------- -------- -------- -------- Non-HIV Maturities (USD'000) 20,681 2,079 4,705 3,114 -------- -------- -------- -------- Total Maturities (USD'000) 23,981 2,079 4,712 3,176 -------- -------- -------- --------
In the period under review, the elderly segment of the portfolio experienced high level of maturities, leading estimated A/E to 240%. We were notified of an additional Non-HIV maturity - the 1st largest exposure - for July, contributing USD 15m across all Share Classes. While the Non-HIV portfolio has performed well above expectations, the HIV portfolio has not reached expectations during the first half year. The underperformance is the result of a decent quantity of matured policies, but with small face values.
At 30 June 2019, LSAA had a NAV of USD 2.19 per share, LSAB had a NAV of USD 1.02, LASD and LSAE had a NAV of USD 1.39 and USD 5.39 respectively. NAV performance history can be seen in the table below.
Class A Year Jan Feb Mar Apr May Jun YTD Total NAV Return 2019 -1.46% 9.64% 0.27% -1.06% 2.10% -0.61% 8.77% ------ ------- ------ ------ ------- ------ ------- ------ Class B Year Jan Feb Mar Apr May Jun YTD Total NAV Return 2019 -2.71% 0.56% -1.07% -2.78% -0.98% -0.97% -7.74% ------ ------- ------ ------- ------- ------- ------- ------- Class D Year Jan Feb Mar Apr May Jun YTD Total NAV Return 2019 -1.48% 10.37% 1.63% -1.63% 2.91% -0.15% 11.79% ------ ------- ------- ------ ------- ------ ------- ------- Class E Year Jan Feb Mar Apr May Jun YTD Total NAV Return 2019 -2.47% 19.62% 0.68% -1.74% -1.12% -0.86% 13.21% ------ ------- ------- ------ ------- ------- ------- -------
Portfolio Composition
Further information on the composition of the portfolio of each Share Class as at 30 June 2019 can be found on our website https://www.lsaplc.com/investor-relations/reports-company-literature
Acheron Capital
27 September 2019
KEY PERFORMANCE INDICATORS (KPIs)
The Board monitors success in implementing the Company's strategy against a range of key performance indicators (KPIs), which are viewed as significant measures of success over the longer term. These key indicators are those provided in the performance tables above. Although performance relative to the KPIs is monitored over quarterly periods, it is success over the long-term that is viewed as more important. This is particularly important given the inherent volatility of maturities and short-term investment returns.
The Board has chosen the following KPIs:
-- Share Price - a key measure for shareholders to show the most likely realisable value of this investment if it was sold. Changes in the share price are closely monitored by the Board.
-- NAV per share - as this is the primary indicator of the underlying value attributable to each share.
-- Discount to NAV - as this measure can be used to monitor the difference between the underlying net asset value and share price.
-- Total maturities (USD) - the value of the total maturities in USD provides an indicator of the underlying cash flow that the Company receives from its main source of income - policy maturities. There are factors which could impact the outcome of this performance measure including: average life expectancy and the age of the underlying policy holders.
Please note that the Actual to Expected ("A/E") ratio, which is closely linked to the total maturities KPI, is a key method by which the Board monitors the level of maturities. The A/E ratio measures the declared maturities compared to the projected maturities based on the actuarial models. A ratio close to 100% indicates maturities correspond exactly to the model. A percentage greater than 100% means the maturities are more than anticipated by the models and less than 100% the opposite is the case.
-- Profit (Loss) before tax - this is a key measure of financial performance used to assess the fortunes of the Company over each financial period.
Please Note: The Company regularly uses performance measures to present its financial performance. These measures may not be comparable to similar measures used by other companies, nor do they correspond to IFRS standards or other accounting principles.
Directors' Statement of Principal Risks and Uncertainties
The important events that have occurred during the period under review and the key factors influencing the financial statements are set out in the Chairman's Statement.
In accordance with DTR 4.2.7, the Directors consider that the principal risks and uncertainties facing the Company have not materially changed since the publication of the Annual Report and Accounts for the year ended 31 December 2018.
The principal risks faced by the Company include, but are not limited to:
-- market price
-- regulatory and tax
-- litigation
-- third party service providers
-- key individuals
-- financial
A more detailed explanation of these risks and the way in which they are managed can be found in the Strategic Report on pages 17 to 19 and in Note 4 to the Financial Statements on pages 57 to 59 of the 2018 Annual Report and Accounts - copies can be found via the Company's website, www.lsaplc.com.
There have been no significant changes in the related party disclosures set out in the Annual Report.
Directors' Statement of Responsibilities in Respect of the Financial Statements
In accordance with Disclosure and Transparency Rule (DTR) 4.2.10 Jean Medernach (Chairman), Michael Baines (Chairman of the Audit Committee), Robert Edelstein, Franck Mathe, Yves Mertz and Guner Turkmen, the Directors, confirm that to the best of their knowledge:
-- The condensed set of financial statements contained within this Half-Yearly financial report have been prepared in accordance with International Accounting Standard ("IAS") 34 'Interim Financial Reporting' as adopted by the European Union and gives a true and fair view of the assets, liabilities, financial position and profit of the Company; and
-- The Half-Yearly financial report includes a fair review of the information required by the FCA's Disclosure and Transparency Rule 4.2.7R being disclosure 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 uncertainties for the remaining six months of the year; and
-- The Half Yearly financial report includes a fair review of the information required by the FCA's Disclosure and Transparency Rule 4.2.8R being disclosure of related party transactions during the first six months of the financial year, how they have materially affected the financial position of the Group during the period and any changes therein.
This Half-Yearly Report was approved by the Board of Directors on 27 September 2019 and the above responsibility statement was signed on its behalf by:
Jean Medernach
Chairman
27 September 2019
Life Settlement Assets Plc
Condensed Statement of Comprehensive Income
for the six months ended 30 June 2019
______________________________________________
Six months ended Period ended Period ended 30 June 2019 30 June 2018 31 December 2018 (unaudited) (unaudited) (audited) Note Revenue Capital Total Revenue Capital Total Revenue Capital Total USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Income Income from life settlement portfolios 435 - 435 275 - 275 566 - 566 Gains/(losses) from life settlement portfolios 3 - 15,604 15,604 - (725) (725) - 1,339 1,339 Other income 74 - 74 78 - 78 133 - 133 Net foreign exchange losses (12) - (12) (52) - (52) (27) - (27) ______ ______ ______ ______ ____ _____ _______ _______ _____ Total income 497 15,604 16,101 301 (725) (424) 672 1,339 2,011 Operating expenses Investment management fees 4 (978) (2,066) (3,044) (1,078) 324 (754) (2,101) 75 (2,026) Other expenses (3,104) - (3,104) (3,090) - (3,090) (4,776) - (4,776) ______ ______ ______ ______ ____ _____ _______ _______ _____ (Loss)/profit before finance costs and taxation (3,585) 13,538 9,953 (3,867) (401) (4,268) (6,205) 1,414 (4,791) Finance costs Interest payable (639) - (639) (632) - (632) (1,296) - (1,296) ______ ______ ______ ______ ____ _____ _______ _______ _____ (Loss)/profit/before taxation (4,224) 13,538 9,314 (4,499) (401) (4,900) (7,501) 1,414 (6,087) Taxation - (70) (70) - - - - - - ______ ______ ______ ______ ____ _____ _______ _______ _____ (Loss)/profit for the period (4,224) 13,468 9,244 (4,499) (401) (4,900) (7,501) 1,414 (6,087) ====== ===== ====== ======= ====== ===== ======= ====== ===== Return per class A share USD 6 (0.070) 0.247 0.177 (0.074) 0.003 (0.071) (0.125) 0.041 (0.084) Return per class B share USD 6 (0.024) (0.062) (0.086) (0.028) (0.019) (0.047) (0.045) (0.123) (0.168) Return per class D share USD 6 (0.042) 0.189 0.147 (0.049) (0.050) (0.099) (0.073) 0.065 (0.008)
Return per class E share USD 6 (0.160) 0.788 0.628 (0.174) 0.116 (0.058) (0.270) 0.414 0.144
All revenue and capital items in the above statement derive from continuing operations of the Company.
The Company does not have any income or expense that is not included in the profit for the period and therefore the profit for the period is also the total comprehensive income for the period.
The total column of this statement is the Statement of Total Comprehensive Income of the Company. The supplementary revenue and capital columns are prepared in accordance with the Statement of Recommended Practice ("SORP") issued by the Association of Investment Companies ("AIC") in November 2014 and updated in February 2018 with consequential amendments.
The notes form part of these financial statements.
Life Settlement Assets Plc
Condensed Statement of Financial Position
as at 30 June 2019
As at As at As at 30 June 30 June 31 December 2019 2018 (unaudited) 2018 (audited) Note (unaudited) USD'000 USD'000 USD'000 Non-current assets Financial assets at fair value through profit or loss: - Life settlement investments 8 83,798 95,170 89,813 - Shares in subsidiaries 2 - 92,626 25,232 _______ _______ _______ 83,798 187,796 115,045 Current assets Maturities receivable 11,709 6,563 17,797 Trade and other receivables 1,060 629 940 Premiums paid in advance 11,089 12,887 13,328 Cash and cash equivalents 36,564 19,270 10,587 _______ _______ _______ 60,422 39,349 42,652 _______ _______ _______ Total Assets 144,220 227,145 157,697 Current liabilities Other payables (2,460) (3,131) (2,015) Provision for performance fees (4,879) (2,564) (2,813) Liabilities to subsidiaries - (92,626) (25,232) _______ _______ _______ Total liabilities (7,339) (98,321) (30,060) _______ _______ _______ Net Assets 136,881 128,824 127,637 ====== ====== ====== Represented by Capital and reserves Share capital 9 711 711 711 Share premium - 133,013 133,013 Special reserve 10 133,013 - - Capital reserve 14,882 (401) 1,414 Revenue reserve (11,725) (4,499) (7,501) _______ _______ _______ Total equity attributable 136,881 128,824 127,637 to ordinary shareholders of ====== ====== ====== the Company Net Asset Value per share basic and diluted Class A shares 11 2.1935 2.0300 2.0166 Class B shares 11 1.0209 1.2283 1.1065 Class D shares 11 1.3944 1.1560 1.2473 Class E shares 11 5.3863 4.5559 4.7580
The notes form part of these financial statements
Registered in England and Wales with Company Registration number: 10918785
Condensed Statement of Changes in Equity
for the six months ended 30 June 2019
________________________________________________________
Share Share Special Capital Revenue Total capital premium reserve reserve reserve USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 Six months ended 30 June 2019 Balance as at 1 January 2019 711 133,013 - 1,414 (7,501) 127,637 Conversion of share premium account (note 10) - (133,013) 133,013 - - - Profit/(loss) for the period - - - 13,468 (4,224) 9,244 ____ ________ _______ ______ _______ _______ Balance as at 30 June 2019 711 - 133,013 14,882 (11,725) 136,881 ===== ======= ======= ====== ======= ======= Of which: Realised profit 15,937 Unrealised loss (1,055) Period ended 30 June 2018 Balance as at 16 August 2017 - - - - - - Shares issued on incorporation 67 - - - - 67 Additional shares issued on 26 March 2018 711 133,013 - - - 133,724 Redemption of redeemable shares (67) - - - - (67) Loss for the period - - - (401) (4,499) (4,900) ____ _______ ______ ______ _______ _______ Balance as at 30 June 2018 711 133,013 - (401) (4,499) 128,824 ==== ====== ===== ===== ====== ====== Of which: Realised loss (674) Unrealised profit 273 Period ended 31 December 2018 Balance as at 16 August 2017 - - - - - - Shares issued on incorporation 67 - - - - 67 Additional shares issued on 26 March 2018 711 133,013 - - - 133,724 Redemption of redeemable shares (67) - - - - (67) Profit/(loss) for the period - - - 1,414 (7,501) (6,087) ____ _______ _______ ______ _______ ______ Balance as at 31 December 2018 711 133,013 - 1,414 (7,501) 127,637 ===== ====== ===== ====== ====== ====== Of which: Realised loss (1,248) Unrealised profit 2,662
The notes form part of these financial statements.
Life Settlement Assets Plc
Condensed Cash Flow Statement
for the six months ended 30 June 2019
____________________________________________________
Six Period Period ended 31 December2018 months ended ended (audited) 30 June 2019 30 June (unaudited) 2018 (unaudited) USD'000 USD'000 USD'000 Cash flow from (used in) operating activities Profit/(loss) for the period 9,244 (4,900) (6,087) Non-cash adjustment * movement on portfolios 7,379 2,291 8,700 * value adjustment on shares in subsidiary - - (5) Changes in operating assets and liabilities Changes in maturities receivables 6,088 7,306 (3,927) Changes in trade and other receivables (120) (51) (363) Changes in premiums paid in advance 2,239 1,013 561 Changes in other payables 2,510 (4,769) (5,625) Changes in liabilities to subsidiary - - 5
______ ______ ______ Net cash flows from (used in) operating activities 27,340 890 (6,741) Cash flow (used in)/from investing activities Investment in life settlement portfolios (1,077) (298) (1,272) Cash acquired from Predecessor Company - 18,833 18,833 ______ ______ ______ Net cash flows (used in)/from investing activities (1,077) 18,535 17,561 Cash flow used in financing activities Movements in "policy loans" (286) (155) (233) _____ ______ ______ Net cash flows used in financing activities (286) (155) (233) ______ ______ ______ Net changes in cash and cash equivalent 25,977 19,270 10,587 Cash balance at the beginning of 10,587 - - the period ______ ______ ______ Cash balance at the end of the period 36,564 19,270 10,587 ===== ====== ======
The notes form part of these financial statements.
Life Settlement Assets Plc
Notes to the Condensed Financial Statements
for the six months ended 30 June 2019
Note 1 General information
Life Settlement Assets ("Life Settlement Assets" or the "Company") is a public company limited by shares and an investment company under section 833 of the Companies Act 2006. It was incorporated in England and Wales on 16 August 2017 with a registration number of 10918785. The registered office of the Company is 115 Park Street, 4th Floor, London W1K 7AP.
The principal activity of Life Settlement Assets is to manage investments in whole and partial interests in life settlement policies issued by life insurance companies operating predominantly in the United States.
In May 2018, the Company received confirmation from HM Revenue & Customs of its approval as an investment trust for tax accounting periods commencing on or after 26 March 2018, subject to the Company continuing to meet the eligibility conditions contained in section 1158 of the Corporation Tax Act 2010 and the ongoing requirements in Chapter 3 of Part 2 of the Investment Trust (Approved Company) (Tax) Regulations 2011(Statutory Instrument 2011/2999).
The Company currently has four classes of Ordinary Shares in issue, namely A, B, D and E, each of which principally participates in a separate portfolio of life settlement assets and associated liabilities, which were acquired from Acheron Portfolio Corporation (Luxembourg) SA ("APC" or the "Predecessor Company") on 26 March 2018.
Note 2 IFRS accounting policies
2.1 Basis of preparation
These condensed interim financial statements have been prepared using the same accounting policies and methods of computation as in the 2018 annual financial statements, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2019 and will be adopted in the 2019 annual financial statements. New standards and amendments to existing standards that will be adopted in the annual financial statements for the year ended 31 December 2019 are:
- IFRS 16 Leases - Annual improvements to IFRS Standards 2015-2017 Cycle.
These new and amended standards issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the company as they are not relevant to the company's activities or require accounting which is not consistent with the company's current accounting policies.
Financial information for the period ended 30 June 2018 has been reclassified in line with classifications used in the financial statements for the year ended 31 December 2018.
As at 30 June 2019, the Company no longer has any subsidiaries: two of the subsidiaries were liquidated in 2018 and the remaining subsidiary in May 2019, none of them had any active operations. Therefore, the Company has elected not to prepare consolidated financial statements for the year ended 31 December 2019 and the comparative information has been restated to show the standalone Company financial statements.
The condensed financial statements, which comprise the unaudited results of the Company have been prepared in accordance with International Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), as adopted by the European Union. They have also been prepared in accordance with the SORP for investment companies issued by the AIC in November 2014 and updated in February 2018 with consequential amendments, except to the extent that it conflicts with IFRS. The accounting policies are as set out in the Report and Accounts for the period ended 31 December 2018.
The half-year financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting".
The financial information contained in this Half-Yearly financial report does not constitute statutory accounts as defined by the Companies Act 2006.The financial information for the periods ended 30 June 2019 and 30 June 2018 have not been audited or reviewed by the Company's Auditor. The figures and financial information for the year ended 31 December 2018 are an extract from the latest published audited statements and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and include a report of the Auditor, which was unqualified and did not contain a statement under either Section 498(2) or 498(3) of the Companies Act 2006.
2.2 Changes in accounting policy and disclosures
Standards and amendments to existing standards that are not yet effective and have not been early adopted by the Company
The following new standards and amendments have been published but are not effective for the company's accounting period beginning on 1 January 2019. The Directors do not expect the adoption of the following new standards, amended standards or interpretations to have a significant impact on the financial statements of the Group in future periods.
IFRS 17 "Insurance contracts" applies to insurance contracts, including reinsurance contracts issued by an entity; reinsurance contracts held by an entity; and investment contracts with discretionary participation features issued by an entity that issues insurance contracts. IFRS 17 will be effective for reporting periods beginning on or after 1 January 2021. It is expected that IFRS 17 will have no impact on the Company's financial statements.
Amendments to References to the Conceptual Framework in IFRS Standards, to IFRS 3 Business Combinations, to IAS 1 and IAS 8: Definition of Material will be effective for reporting periods beginning on or after 1 January 2020. It is expected these amendments will have no impact on the Company's financial statements.
Going concern
The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future (being a period of 12 months from the date these financial statements were approved). Furthermore, the Directors are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern, having taken into account the liquidity of the Company's investment portfolio and the Company's financial position in respect of its cash flows, liabilities from its assets and the ongoing charges, including annual premiums which are approximately 17% of assets. Therefore, the financial statements have been prepared on the going concern basis and on the basis that approval as an investment trust will continue to be met.
Note 3 Gains/(losses) from life settlement portfolios 30 June 30 June 31 December 2019 2018 2018 USD'000 USD'000 USD'000 Realised gains: * Maturities 33,948 12,851 33,371 * Acquisition cost of maturities (6,323) (2,564) (11,362) ______ ______ ______ Sub total 27,625 10,287 22,009 Incurred premiums (10,966) (11,285) (23,332) Unrealised (losses)/gains: * Fair value adjustments (1,055) 273 2,662 ______ ______ ______ 15,604 (725) 1,339 ====== ====== ======
When a maturity is declared, a realised capital income or loss is recognised on the investment in the policy, calculated by deducting from the value of the maturity the acquisition cost.
The amount of premiums incurred during the period is reflected as a deduction of income from life settlement portfolios. The amount of premiums paid in advance amounted to USD'000 11,089 as at 30 June 2019 (30 June 2018: USD'000 12,887 and 31 December 2018: USD'000 13,328).
Note 4 Management fees and performance fees 30 June 30 June 31 December 2019 2018 2018 USD'000 USD'000 USD'000 Acheron Capital management fees 978 1,078 2,101 Performance fees 2,066 (324) (75) ______ _____ _____ 3,044 754 2,026 ===== ===== =====
Under an agreement dated 26 March 2018, the Investment Manager is entitled to a management fee payable by the Trusts at an annual rate of no more than 1.5% of the Net Asset Value for classes A, B and D, and 2% for class E.
The Performance fee in respect of the Trusts shall be an amount equal to 25% of the sum of the distributions made to the holders of the Shares in the Company corresponding to the Trusts, in excess of the Performance Hurdle (assessed at the time of each distribution).
The "Performance Hurdle" is met when (from time to time) the aggregate distributions (in excess of the Catch-Up Amount) made to the holders of the corresponding Ordinary Shares compounded at 3% per annum for classes A and B, and 5% for classes D and E (from the date of each distribution) equal the aggregate investment made by the Ordinary Shares in the Company (from time to time) compounded at 3% and 5% respectively.
Note 5 Taxation
The Company has an effective UK tax rate of 0% for the year ending 31 December 2019. The estimated effective tax rate is 0% as investment gains are exempt from tax owing to the Company's status as an investment trust and there is expected to be an excess of management expenses over taxable income.
Withholding tax on matured policies
In accordance with the taxation treaty between the United States of America and the United Kingdom, withholding tax on matured policies is not due if at least 6% of the average capital stock of the main class of Shares is traded during the previous year on a recognised stock exchange. The Board believes that in the period ended 31 December 2018 the Company fulfilled this requirement.
The company is liable for US income tax on financial income (mainly dividends) received from policies at the time of maturity. The tax charge for the period amounted to USD'000 70.
Note 6 Return per share
As stated in Note 9, the share capital of the Company comprises 71,068,874 shares represented by 45,446,946 A Shares, 14,596,098 B Shares, 9,292,561 D Shares, and 1,733,269 E Shares. All Shares are fully paid. Neither unpaid shares nor any kind of option are outstanding, so the basic profit/(loss) per share is also the diluted profit/(loss) per share.
As the different classes of Shares have specific rights in relation to their investments, the net profit/(loss) per share is given for each Share Class:
Six months ended 30 Class A Class B Class D Class E June 2019 Earnings per share: Revenue return (USD'000) (3,207) (349) (391) (276) Capital return (USD'000) 11,243 (899) 1,757 1,366 Total Return (USD'000) 8,036 (1,248) 1,366 1,090 Weighted average number of shares the year 45,446,946 14,596,098 9,292,561 1,733,269 Income return per share (USD) (0.070) (0.024) (0.042) (0.160) Capital return per share (USD) 0.247 (0.062) 0.189 0.788 Basic and diluted total earnings per share (USD) 0.177 (0.086) 0.147 0.628 Period ended 30 June Class A Class B Class D Class E 2018 Earnings per share: Revenue return (USD'000) (3,346) (401) (451) (301) Capital return (USD'000) 141 (275) (467) 200 Total Return (USD'000) (3,205) (676) (918) (101) Weighted average number of shares the year 45,446,946 14,596,098 9,292,561 1,733,269 Income return per share (USD) (0.074) (0.028) (0.049) (0.174) Capital return per share (USD) 0.003 (0.019) (0.050) 0.116 Basic and diluted total earnings per share (USD) (0.071) (0.047) (0.099) (0.058) Period ended 31 December Class A Class B Class D Class E 2018 Earnings per share: Revenue return (USD'000) (5,700) (658) (674) (469) Capital return (USD'000) 1,889 (1,797) 604 718 Total Return (USD'000) (3,811) (2,455) (70) 249 Weighted average number of shares the year 45,446,946 14,596,098 9,292,561 1,733,269 Income return per share (USD) (0.125) (0.045) (0.073) (0.270) Capital return per share (USD) 0.041 (0.123) 0.065 0.414 Basic and diluted total earnings per share (USD) (0.084) (0.168) (0.008) 0.144 Note 7 Financial instruments measured at fair value
The life settlement portfolios have been classified as financial assets held at fair value through profit or loss as their performance is evaluated on a fair value basis.
The fair value hierarchy set out in IFRS 13 groups financial assets and liabilities into three levels based on the significant inputs used in measuring the fair value of the financial assets and liabilities.
The fair value hierarchy has the following levels:
- level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
- level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The life settlement portfolios of USD'000 83,798 (30 June 2018: USD'000 95,170 and 31 December 2018: USD'000 89,813) are all classified as level 3.
At 31 December 2018, the portfolios were valued by an external actuary, Lewis & Ellis (L&E), based on an actuarial model. Using these values, Acheron Capital Ltd (the Investment manager of the trusts in which the policies of Class A, B, D and E are kept) resets its internal model at the beginning of each year, if necessary, and produces regular monthly valuations using its internal model.
Note 8 Financial assets held at fair value through profit or loss: Life Settlement Portfolios
Movements for the period are as follows:
As at 30 As at 30 As at 31 June June December 2019 2018 2018 USD'000 USD'000 USD'000 Opening valuation 89,813 97,008 97,008 Acquisitions during the period 1,077 298 1,272 Proceeds from matured policies (33,948) (12,851) (33,371) Net realised gains on policies 27,625 10,287 22,009 Movements in cash from policy loans 286 155 233 Movements in unrealised valuation (1,055) 273 2,662 _______ _______ ______ Closing valuation 83,798 95,170 89,813 ======= ======= ====== Details at period end: USD'000 USD'000 USD'000 Acquisition value 104,169 117,240 109,415 Unrealised capital gains 1,607 273 2,662 Policy loans (21,978) (22,343) (22,264) _______ _______ _______ Closing valuation 83,798 95,170 89,813 ====== ======= =======
Distribution of the portfolio as at 30 June 2019 by class of Shares and by type of risk:
Class A Class Class Class Total B D E USD'000 USD'000 USD'000 USD'000 USD'000 Elderly life insurance (non-HIV) portfolio 20,715 9,832 5,200 2,757 38,504 HIV portfolio 41,773 - 2,484 1,037 45,294 (_________) (_________) (_____________) (_________) (________) Balance as at 30 June 2019 62,488 9,832 7,684 3,794 83,798 ====== ===== ========= ===== =====
Fair market value reflects the view of Acheron Capital Ltd, the Investment Manager of the trusts in which the policies of Class A, B, D and E are kept.
Distribution of the portfolio as at 30 June 2018 by class of Shares and by type of risk:
Class A Class Class Class Total B D E USD'000 USD'000 USD'000 USD'000 USD'000 Elderly life insurance (non-HIV) portfolio 25,464 12,820 7,353 4,502 50,139 HIV portfolio 41,745 - 2,339 947 45,031 (______________) (_____________) (_____________) (_____________) (______________) Balance as at 30 June 2018 67,209 12,820 9,692 5,449 95,170 ========= ======== ========= ========== =========
Distribution of the portfolio as at 31 December 2018 by class of Shares and by type of risk:
Class A Class Class Class Total B D E USD'000 USD'000 USD'000 USD'000 USD'000 Elderly life insurance (non-HIV) portfolio 23,889 10,645 7,092 3,722 45,348 HIV portfolio 41,204 - 2,232 1,029 44,465 (______________) (_____________) (_____________) (_____________) (______________) Balance as at 31 December 2018 65,093 10,645 9,324 4,751 89,813 ========= ======== ========= ========== ========= Note 9 Share Capital
At the 30 June 2019 (30 June 2018 and 31 December 2018) the Company's share capital amounts to USD 710,689 and is represented by 71,068,874 ordinary shares of USD 0.01 each.
The issued and fully paid share capital is comprised of 45,446,946 Class A shares, 14,596,098 Class B shares, 9,292,561 Class D shares, and 1,733,269 Class E shares.
Class A, Class B, Class D and Class E shares relate to specific investments determined by the Board of Directors or as the case may be, by a general meeting of Shareholders. Each investment is undertaken for the exclusive benefit and risk of the relevant class of shares. All shares have equal voting rights.
Note 10 Special reserve
The Special reserve was created as a result of the cancellation of the Share premium account following a court order issued on 18 June 2019. The Special reserve is distributable and may be used to fund purchases of the Company's own shares and to make distributions to Shareholders.
Note 11 Net assets and net asset value per class of shares
The net asset value (NAV) as at 30 June 2019 for each class of Shares are shown below.
Class Class B Class Class E Total A D Net assets (USD'000) 99,687 14,901 12,957 9,336 136,881 Number of shares 45,446,946 14,596,098 9,292,561 1,733,269 71,068,874 NAV per share (USD) 2.1935 1.0209 1.3944 5.3863
The net asset value (NAV) as at 30 June 2018 for each class of Shares are shown below.
Class A Class B Class D Class Total E Net assets (USD'000) 92,256 17,929 10,743 7,896 128,824 Number of shares 45,446,946 14,596,098 9,292,561 1,733,269 71,068,874 NAV per share (USD) 2.0300 1.2283 1.1560 4.5559
The net asset value (NAV) as at 31 December 2018 for each class of Shares are shown below.
Class A Class B Class D Class Total E Net assets (USD'000) 91,649 16,150 11,591 8,247 127,637 Number of shares 45,446,946 14,596,098 9,292,561 1,733,269 71,068,874 NAV per share (USD) 2.0166 1.1065 1.2473 4.7580 Note 12 Related party transactions
Related parties to the Company are the members of the Board of Directors of the Company, Compagnie Européenne de Révision S.à r.l. as Administrator who has a member on the Board of Directors and the Trustee of the US trusts who is also a member of the Board of Directors.
USD'000 Per income statement: Trustee fees 86 Compagnie Européenne de Révision S.à r.l. 191 Directors' fees 76 Amounts payable per balance sheet: Compagnie Européenne de Révision S.à r.l. 120 Directors' fees 65 ===== Shares held by related parties (Directors and companies under their control)- Jean Medernach 50,000
All transactions with related parties are undertaken at arm's length.
Note 13 Post balance sheet events
On 3 July 2019, the Company completed a tender offer for 5,555,555 A Ordinary Shares at a price of USD 1.80 per share. Total consideration amounted to USD 9,999,999. The shares have subsequently been cancelled. Following completion of the Tender Offer, the Company had 39,891,391 A Ordinary Shares, 14,596,098 B Ordinary Shares, 9,292,561 D Ordinary Shares and 1,733,269 E Ordinary Shares.
On 10 July 2019, the Company has received notification of a number of maturities including the most significant outstanding policy at that time. The face value of this policy amounts to USD 10,160,466 for the benefit of the A Share Class, USD 776,018 for the benefit of the B Share Class, USD 2,168,074 for the benefit of the D Share Class and USD 1,982,432 for the benefit of the E Share Class.
On 19 July 2019, the Company paid a special dividend out of the special distributable reserve created by the cancellation of the share premium account of US Cents 5.50 for A Ordinary Shares, US Cents 37.66 for D Ordinary Shares and US Cents 259.62 for E Ordinary Shares. Total consideration amounted to USD 2,500,000 for A Ordinary Shares, USD 3,500,000 for D Ordinary Shares and USD 4,500,000 for E Ordinary Shares.
On 6 August 2019 the Company announced a share buyback programme of USD 500,000 for each of the D and E Ordinary Shares. As at the date of this report, 500,000 D Ordinary Shares and 166,666 E Ordinary shares have been bought back. The shares will subsequently be cancelled. Following the buybacks, the Company's share capital as at the date of this report was 64,846,653 comprising 39,891,391 A Ordinary Shares, 14,596,098 B Ordinary Shares, 8,792,561 D Ordinary Shares and 1,566,603 E Ordinary Shares.
ADDITIONAL INFORMATION
Additional information of exhibits I to IV do not form part of the condensed financial statements.
EXHIBIT I (unaudited)
Life Settlement Assets Plc
Class A Shares
Statement of Comprehensive Income for the six months ended 30 June 2019
Six months Period Period ended ended ended 31 December 30 June 2019 30 June 2018 2018 (unaudited) (unaudited) (audited) USD'000 USD'000 USD'000 Income Income from life settlement portfolios 372 262 515 Gains from life settlement portfolios 12,800 141 1,890 Other income 47 59 68 Net foreign exchange loss (12) (52) (26) ______ ______ ______ Total income 13,207 410 2,447 Operating expenses Investment management fees (2,174) (726) (1,441) Other expenses (2,295) (2,269) (3,538) ______ ______ ______ Profit/(loss) before finance costs and taxation 8,738 (2,585) (2,532) Finance costs Interest payable (632) (620) (1,279) ______ ______ ______ Profit/(loss) before taxation 8,106 (3,205) (3,811) Taxation (70) - - ______ ______ ______ Profit/(loss) for the period 8,036 (3,205) (3,811) ====== ====== ======
EXHIBIT I (unaudited)
Life Settlement Assets Plc
Class A Shares
Statement of Financial Position
as at 30 June 2019
As at As at As at 31 December 2018 30 June 30 June (audited) 2019 2018 USD'000 (unaudited) (unaudited) USD'000 USD'000 ASSETS Non-current assets Financial assets at fair value through profit or loss: - Life settlement investments 62,488 67,209 65,093 - Shares in subsidiary - 61,329 - ______ ______ ______ 62,488 128,538 65,093 Current assets Maturities receivables 8,099 3,810 10,508 Trade and other receivables 702 599 644 Premiums paid in advance 7,359 8,107 9,402 Cash and cash equivalents 23,263 12,814 7,085 Inter-class receivables 842 1,708 234 ______ ______ ______ 40,265 27,038 27,873 ______ ______ ______ Total Assets 102,753 155,576 92,966 Current liabilities Other payables (1,580) (1,991) (1,317) Provision for performance (1,486) - - fees Liabilities to subsidiary - (61,329) - ______ ______ ______ (3,066) (63,320) (1,317) ______ ______ ______ Net Assets 99,687 92,256 91,649 ====== ====== ====== Capital and reserves Share capital 455 455 455 Share premium - 95,006 95,006 Special reserve 95,006 - - Capital reserve 13,132 141 1,889 Revenue reserve (8,906) (3,346) (5,701) ______ ______ ______ Total equity attributable 99,687 92,256 91,649 to ordinary shareholders ====== ====== ======
EXHIBIT II (unaudited)
Life Settlement Assets Plc
Class B Shares
Statement of Comprehensive Income for the six months ended 30 June 2019
Six months Period Period ended ended ended 31 December 30 June 2019 30 June 2018 2018 (unaudited) (unaudited) (audited) USD'000 USD'000 USD'000 Income Income from life settlement portfolios 19 1 9 Loss from life settlement portfolios (899) (275) (1,797) Other income 8 8 23 Net foreign exchange - loss - - ______ _____ ______ Total income (872) (266) (1,765) Operating expenses Investment management fees (121) (139) (279) Other expenses (253) (268) (407) ______ _____ ______ Loss before finance costs and taxation (1,246) (673) (2,451) Finance costs Interest payable (2) (3) (4) ______ _____ ______ Loss before taxation (1,248) (676) (2,455) Taxation - - - ______ _____ ______ Loss for the period (1,248) (676) (2,455) ===== ==== =====
EXHIBIT II (unaudited)
Life Settlement Assets Plc
Class B Shares
Statement of Financial Position
as at 30 June 2019
As at As at 30 As at 31 June December 2018 30 June 2018 (audited) 2019 (unaudited) (unaudited) USD'000 USD'000 USD'000 ASSETS Non-current assets Financial assets at fair value through profit or loss: Life settlement investments 9,832 12,820 10,645 Shares in subsidiary - 17,627 17,632 ______ _______ _______ 9,832 30,447 28,277 Current assets Maturities receivables 1,169 558 2,819 Trade and other receivables 114 10 93 Premiums paid in advance 1,828 2,005 1,469 Cash and cash equivalents 2,781 3,582 1,510 Inter class receivables - - - ______ _______ _______ 5,892 6,155 5,891 ______ _______ _______ Total Assets 15,724 36,602 34,168 Current liabilities Other payables (482) (585) (263) Provision for performance - - - fees Liabilities to subsidiary - (17,627) (17,632) Inter class payables (341) (461) (123) ______ _______ _______ (823) (18,673) (18,018) ______ _______ _______ Net Assets 14,901 17,929 16,150 ===== ====== ====== Capital and reserves Share capital 146 146 146 Share premium - 18,459 18,459 Special reserve 18,459 - - Capital reserve (2,696) (275) (1,797) Revenue reserve (1,008) (401) (658) ______ _______ _______ Total equity attributable 14,901 17,929 16,150 to ordinary shareholders ====== ====== ======
EXHIBIT III (unaudited)
Life Settlement Assets Plc
Class D Shares
Statement of Comprehensive Income for the six months ended 30 June 2019
Six months Period Period ended ended ended 31 December 30 June 2019 30 June 2018 2018 (unaudited) (unaudited) (audited USD'000 USD'000 USD'000 Income Income from life settlement portfolios 23 8 20 Gains/(losses) from life settlement portfolios 2,093 (733) 526 Other income 10 8 23 Net foreign exchange - loss - - ______ _____ _____ Total income 2,126 (717) 569 Operating expenses Investment management fees (423) 151 (125) Other expenses (334) (347) (506) _____ ____ _____ Profit/(loss) before finance costs and taxation 1,369 (913) (62) Finance costs Interest payable (3) (5) (8) _____ _____ ______
Profit/(loss) before taxation 1,366 (918) (70) Taxation - - - _____ _____ ____ Profit/(loss) for the period 1,366 (918) (70) ==== ==== ====
EXHIBIT III (unaudited)
Life Settlement Assets Plc
Class D Shares
Statement of Financial Position
as at 30 June 2019
As at As at As at 31 December 2018 30 June 30 June (audited) 2019 2018 USD'000 (unaudited) (unaudited) USD'000 USD'000 ASSETS Non-current assets Financial assets at fair value through profit or loss: Life settlement investments 7,684 9,692 9,324 Shares in subsidiary - 7,600 7,600 _____ _____ ______ 7,684 17,292 16,924 Current assets Maturities receivables 2,037 564 2,328 Trade and other receivables 113 10 91 Premiums paid in advance 1,294 1,714 1,298 Cash and cash equivalents 4,521 1,151 704 _____ _____ _____ 7,965 3,439 4,421 ______ ______ ______ Total Assets 15,649 20,731 21,345 Current liabilities Other payables (200) (288) (208) Provision for performance fees (2,220) (1,696) (1,884) Liabilities to subsidiary - (7,600) (7,600) Inter-class payables (272) (404) (62) ______ ______ ______ (2,692) (9,988) (9,754) ______ ______ ______ Net Assets 12,957 10,743 11,591 ===== ===== ===== Capital and reserves Share capital 93 93 93 Share premium - 11,568 11,568 Special reserve 11,568 - - Capital reserve 2,361 (467) 604 Revenue reserve (1,065) (451) (674) ______ ______ ______ Total equity attributable 12,957 10,743 11,591 to ordinary shareholders ===== ===== =====
EXHIBIT IV (unaudited)
Life Settlement Assets Plc
Class E Shares
Statement of Comprehensive Income for the six months ended 30 June 2019
Six months Period Period ended ended ended 31 December 30 June 2019 30 June 2018 2018 (unaudited) (unaudited) (audited USD'000 USD'000 USD'000 Income Income from life settlement portfolios 21 4 22 Gains from life settlement portfolios 1,610 142 720 Other income 9 3 19 Net foreign exchange loss - - (1) _____ ____ ____ Total income 1,640 149 760 Operating expenses Investment management fees (326) (40) (181) Other expenses (222) (206) (325) _____ ____ _____ Profit/(loss) before finance costs and taxation 1,092 (97) 254 Finance costs Interest payable (2) (4) (5) _______ ____ _____ Profit/(loss)before taxation 1,090 (101) 249 Taxation - - - _____ ____ _____ Profit/(loss)for the period 1,090 (101) 249 ==== ==== ====
EXHIBIT IV (unaudited)
Life Settlement Assets Plc
Class E
Statement of Financial Position
as at 30 June 2019
As at As at 30 As at 30 June June 31 December 2019 2018 2018 (unaudited) (unaudited) (audited) USD'000 USD'000 USD'000 ASSETS Non-current assets Financial assets at fair value through profit or loss: Life settlement investments 3,794 5,449 4,751 Shares in subsidiary - 6,070 - ______ ______ ______ 3,794 11,519 4,751 Current assets Maturities receivables 404 1,631 2,142 Trade and other receivables 131 10 112 Premiums paid in advance 608 1,061 1,159 Cash and cash equivalents 5,999 1,723 1,288 ______ ______ ______ 7,142 4,425 4,701 ______ ______ ______ Total Assets 10,936 15,944 9,452 Current liabilities Other payables (198) (255) (227) Provision for performance fees (1,173) (868) (929) Liabilities to subsidiary - (6,070) - Inter-class payables (229) (855) (49) ______ ______ ______ (1,600) (8,048) (1,205) ______ ______ ______ Net Assets 9,336 7,896 8,247 ===== ===== ===== Capital and reserves Share capital 17 17 17 Share premium - 7,980 7,980 Special reserve 7,980 - - Capital reserve 2,085 200 718 Revenue reserve (746) (301) (468) _____ _____ _____ Total equity attributable 9,336 7,896 8,247 to ordinary shareholders ===== ===== =====
SHAREHOLDER INFORMATION
Directors
Jean Medernach
Michael Baines
Robert Edelstein
Franck Mathé
Yves Metz
Guner Turkman
Registered Office
115 Park Street
4th Floor
London W1K 7AP
Auditors
Grant Thornton UK LLP
30 Finsbury Square
London
EC2P 2YU
Trusts' Investment Manager
Acheron Capital Limited
115 Park Street
4th Floor
London W1K 7AP
Share Registrars
Link Asset Services
34 Beckenham Road
Beckenham
Kent BR3 4ZF
Brokers
Shore Capital
100 Wood Street
London
EC2V 7AN
Company Secretary
Maitland Administration Services Limited
Hamilton Centre
Rodney Way
Chelmsford
CM1 3BY
Email: cosec@maitlandgroup.co.uk
Telephone: 01245 398984
Website - https://www.lsaplc.com
Registered in England and Wales with Company Registration number: 10918785
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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