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LSAA Life Settlement Assets Plc

1.625
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
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

Life Settlement Assets PLC Half-year Report (8533N)

27/09/2019 7:00am

UK Regulatory


Life Settlement Assets (LSE:LSAA)
Historical Stock Chart


From Mar 2019 to Mar 2024

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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

IR UNRVRKRAKUAR

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September 27, 2019 02:00 ET (06:00 GMT)

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