Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
New Star Investment Trust Plc LSE:NSI London Ordinary Share GB0002631041 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 106.00 103.00 109.00 106.00 105.50 106.00 3,597 08:00:12
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 2.2 1.3 1.8 58.6 75

New Star Investment Trust PLC: Half Year Results of the six months ended 31st December 2019

20/03/2020 4:53pm

UK Regulatory (RNS & others)


 
 New Star Investment Trust PLC (NSI) 
New Star Investment Trust PLC: Half Year Results of the six months ended 
31st December 2019 
 
20-March-2020 / 16:53 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
   ­NEW STAR INVESTMENT TRUST PLC 
 
   HALF YEAR RESULTS FOR THE SIX MONTHSED 31st DECEMBER 2019 
 
FINANCIAL HIGHLIGHTS 
 
INVESTMENT OBJECTIVE 
 
The Company's objective is to achieve long-term capital growth. 
 
                          31st December         30th June      % 
                                   2019 
 
                                                     2019 Change 
PERFORMANCE 
Net assets (GBP '000)             117,559           113,971    3.1 
Net asset value per             165.52p           160.47p    3.1 
Ordinary share 
Mid-market price per            117.00p           111.00p    5.4 
Ordinary share 
Discount of price to             29.31%            30.83%    n/a 
net asset value 
 
                       Six months ended  Six months ended 
 
                          31st December     31st December 
                                   2019              2018 
 
Total Return*                     4.02%            -4.63%    n/a 
IA Mixed Investment               4.41%            -6.62%    n/a 
40-85% Shares (total 
return) 
MSCI AC World Index               4.89%            -5.47%    n/a 
(total return, 
sterling adjusted) 
MSCI UK Index (total              3.03%           -10.04%    n/a 
return) 
 
                               Six months ended Six months ended 
 
                                  31st December    31st December 
 
                                           2019             2018 
REVENUE 
 
Return (GBP'000)                              792              607 
Return per Ordinary share                  1.1p            0.85p 
Proposed dividend per Ordinary                -                - 
share 
Dividend paid per Ordinary                1.40p            1.00p 
share 
 
TOTAL RETURN 
Return (GBP'000)                            4,582          (5,154) 
 
Net assets                                 3.1%            -5.3% 
Net assets (dividend added                 4.0%            -4.6% 
back) 
 
* The total return figure for the Group represents the revenue and capital 
return shown in the consolidated statement of comprehensive income plus 
dividends paid (the alternative performance measure). 
 
INTERIM REPORT 
 
CHAIRMAN'S STATEMENT 
 
       PERFORMANCE 
 
 Your Company generated a positive total return of 4.02% over the six months 
  to 31st December 2019, taking the net asset value (NAV) per ordinary share 
    to 165.52p. By comparison, the Investment Association's Mixed Investment 
   40-85% Shares Index rose 4.41%. The MSCI AC World Total Return Index rose 
4.89% while the MSCI UK Total Return Index rose 3.03%. Over the same period, 
  UK government bonds returned 2.05%. Further information is provided in the 
       investment manager's report. 
 
    Your Company made a revenue profit for the six months of GBP792,000 (2018: 
        GBP607,000). 
 
       GEARING AND DIVIDS 
 
  Your Company has no borrowings and ended the period under review with cash 
     representing 14.28% of its NAV. Your Company has small retained revenue 
      reserves and your Directors do not recommend the payment of an interim 
 dividend (2018: nil). Your Company paid a dividend of 1.4p per share (2018: 
       1.0p) in November 2019 in respect of the previous financial year. 
 
       DISCOUNT 
During the period, your Company's shares continued to trade at a significant 
       discount to their NAV. The Board keeps this issue under review. 
 
       PERFORMANCE FEE 
 
   In November 2019, your Company announced that the current performance fee 
     arrangement was not appropriate in a low interest rate environment. The 
       current performance fee arrangements ceased from 1 January 2020. A 
      performance fee of GBP622,000 (2018: GBPnil) was payable in respect of the 
       period under review. 
 
       OUTLOOK 
 
 Risky assets fell sharply in the early spring of 2020 as the Covid-19 virus 
 spread. Equity markets bore the brunt but corporate bonds and property also 
       registered declines. Central Banks have responded with unprecedented 
     interest rate reductions, increased quantitative easing and measures to 
       stimulate lending. 
 
 Monetary policy alone, however, is unlikely to be sufficient to address the 
downturn because the virus impact is a supply-side shock, causing work place 
closures and supply chain disruption. As a result, governments have moved to 
  alleviate the impact on businesses and families to shield the economy from 
       serious long-term harm. 
 
      Risky assets are likely to remain weak and volatile until the Covid-19 
    outbreak moderates. Your Company, however, entered this difficult period 
       with substantial cash holdings. Over the coming weeks, your Company's 
  defensive assets may provide some capital protection. There should also be 
opportunities for your Company to deploy cash in investments with attractive 
       long-term potential, including in equity markets. 
 
NET ASSET VALUE 
 
   Your Company's unaudited NAV per share at 29th February 2020 was 156.62p. 
      Your Company's unaudited NAV per share at 19th March 2020 was 136.12p. 
 
       Geoffrey Howard-Spink 
 
       Chairman 
 
       20th March 2020 
 
INVESTMENT MANAGER'S REPORT 
 
       MARKET REVIEW 
 
    Global equities rose 4.89% and bonds fell 2.77% in sterling over the six 
       months to 31st December 2019 as central banks maintained policies of 
       monetary easing. Returns in overseas stock markets were stronger but 
    sterling investors were adversely affected as the pound rose against the 
       euro, yen and dollar by 5.60%, 4.99% and 4.09% respectively. 
 
The Federal Reserve reduced interest rates by three-quarters of a percentage 
  point to 1.5-1.75%. Jobs data were strong but inflation remained below its 
2% target. The European Central Bank increased further its negative interest 
  rate by 10 basis points to -0.5%, said interest rates would not rise until 
 inflation was closer to 2% and resumed asset purchases. The Bank of England 
    left its bank rate unchanged. UK government and sterling corporate bonds 
 rose 2.05% and 3.52% respectively over the period. Gold and gold securities 
   rose 3.07% and 10.92% respectively in sterling as the opportunity cost of 
       holding this nil-yielding asset remained low. 
 
 The Conservatives won December's UK election, averting a shift to the left. 
     UK stocks rose 3.03% but smaller companies, typically more sensitive to 
     domestic conditions, outperformed, rising 13.28%. Sterling briefly rose 
      above $1.35 but retreated as investors decided the risk of a "no deal" 
    Brexit had not disappeared, with the government legislating that a trade 
 deal had to be agreed during 2020, setting a demanding timetable. UK assets 
       are likely to prove sensitive to news about the talks. 
 
      Progress in Sino-US trade talks was confirmed when an interim deal was 
     signed in January 2020. Equities in emerging markets and Asia excluding 
    Japan benefited from end-of-year optimism but still lagged, up 3.11% and 
       2.74% respectively in sterling. Under the deal, China will increase 
  purchases of US goods and improve the protection of intellectual property. 
 In return, December's planned tariff increases were cancelled. The thornier 
 issues of national security and technology are outside the deal's scope and 
    may never be resolved. Protectionism is likely to remain a feature of US 
       trade policy. 
 
 US equities outperformed, rising 6.56% in sterling, with technology stocks, 
 up 13.57%, leading the way. Steady US jobs data supported consumer spending 
   but business investment and exports were weak. The Sino-US agreement may, 
    however, provide a fillip to exports in the longer term. China's economy 
    expanded 6% year-on-year during the period, the lowest growth rate since 
       1992. 
 
       PORTFOLIO REVIEW 
 
   Your Company's total return over the period under review was 4.56% before 
       performance fees and 4.02% after performance fees. By comparison, the 
Investment Association's Mixed Investment 40-85% Shares sector, comprising a 
peer group of multi-asset funds that typically invest 40-85% of their assets 
   in global equities, rose 4.41%. The MSCI AC World Total Return Index rose 
     4.89% in sterling while the MSCI UK Total Return Index rose 3.03%. Your 
       Company benefited from investments in funds invested in UK smaller 
    companies, gold securities and technology stocks. The high allocation to 
       dollar cash, however, hurt performance as sterling strengthened. 
 
  The Aberforth Split Level Income investment trust was the portfolio's best 
performer, rising 26.09%, partly as a result of the leverage provided by its 
zero-dividend preference shares. The manager takes a value-oriented approach 
  to investing in UK smaller companies. Such companies performed strongly as 
       the Tories' election victory reduced domestic political risk and 
 strengthened the government's hand in its EU trade negotiations. Chelverton 
UK Equity Income, which also invests in smaller companies, rose 14.67%. Your 
   Company's holding was increased in November. The Aberforth and Chelverton 
 funds have above-average dividend yields and their income is derived from a 
   broad range of sectors in contrast to the income from the FTSE 100 Index, 
 which is dominated by financial and resources stocks. Man GLG UK Income and 
MI Brompton UK Recovery outperformed, benefitting from gains among small and 
   medium-sized companies. Trojan Income and Schroder Income focus on larger 
      companies but both outperformed, gaining 7.79% and 5.32% respectively. 
 
BlackRock Gold & General gained 6.24%, beating the return from physical gold 
but lagging the returns from gold miners. A minimum of 70% of the portfolio 
is held in miners of precious metals. Miners typically offer a geared return 
on gold because gold price changes are magnified in their share prices as a 
result of operational gearing and financial leverage. The sector 
consolidated in 2019 through mergers that will generate operational 
efficiencies and scale benefits on top of any rise in the gold price. At the 
period end, BlackRock Gold & General's two largest holdings were Barrick and 
Newmont, which each represented about 10% of the portfolio as a result of 
mergers. Regulatory reasons prevent the fund manager from increasing these 
holdings yet these businesses account for a larger proportion of the sector. 
This may at times lead the fund's performance to diverge from the sector. 
 
      During the period, your Company had no direct investments in US equity 
funds. This hurt performance because US equities outperformed, driven by the 
     technology sector. Within your Company's global holdings, Polar Capital 
Global Technology rose 9.73%, benefitting from its holdings in US technology 
 companies such as Microsoft, Alphabet, Apple and Facebook. Fundsmith Equity 
       underperformed, however, rising 2.79%. 
 
     Amongst your Company's emerging market equity holdings, the HSBC Russia 
   Capped exchange-traded fund did best, rising 11.68% in line with the gain 
from Russian stocks. Stewart Investors Indian Subcontinent was, however, the 
   weakest holding, falling 3.22% as Indian stocks fell 4.04% in sterling in 
response to slower economic growth. Emerging market debt outperformed global 
     bonds over the period. Franklin Templeton Emerging Markets Bond lagged, 
   however, down 5.24% as a result of its holdings in Argentine bonds, which 
       fell as politics shifted to the left. 
 
       Bond market weakness held back returns within EF Brompton Global 
 Conservative, which returned 3.37%, while the Aquilus Inflection hedge fund 
       returned 0.61%. 
 
The valuation of your Company's unquoted portfolio rose 13.59% to GBP8.39 
million over the period. This was solely due to a revaluation of the 
shareholding in the largest unquoted holding, Embark, to the price paid by 
new external investors in a GBP45 million fundraising in November. Embark has 
continued to grow its assets under administration aggressively, both 
organically and through acquisition. 
 
       OUTLOOK 
 
   Risky assets fell sharply across the world in the early spring of 2020 as 
   the Covid-19 virus spread outside China. Equity markets bore the brunt of 
  the falls but other asset classes including corporate bonds and commercial 
   property also registered significant declines. Major Central Banks across 
  the developed world and in emerging markets have responded to the economic 
    shock with sweeping measures. These included unprecedented interest rate 
   reductions in the US and the UK, as official rates were cut to near zero. 
       Other initiatives included increased quantitative easing and measures 
      designed to stimulate bank lending. Monetary policy alone, however, is 
  unlikely to be sufficient to address the global downturn because the virus 
   impact is a supply-side shock, with work places closing and supply chains 
  disrupted. Government measures targeted at alleviating the economic impact 
on businesses and families are, therefore, likely to be critical in ensuring 
     the economy emerges strongly once this temporary shock subsides. In the 
     meantime, equities and other risky assets are likely to remain weak and 
     volatile until the numbers of new coronavirus cases moderate across the 
       world. This may take some months. 
 
 Your Company entered this period of turmoil with substantial investments in 
       cash, in particular in dollars. Some of the defensive assets in your 
       Company's portfolio such as gold and lower-risk multi-asset funds may 
 provide some capital protection over the coming weeks. There should also be 
    opportunities for long-term investors such as your Company to deploy its 
   cash in investments with attractive long-term potential, in particular in 
       equity markets. 
 
Brompton Asset Management LLP, 20th March 2020 
 
DIRECTORS' REPORT 
 
       PERFORMANCE 
 
 In the six months to 31st December 2019 the total return per Ordinary share 
  was 4.0% (2018: negative 4.6%) and the NAV per ordinary share increased to 
 165.52p, whilst the share price increased by 5.4% to 117.00p. This compares 
      to an increase of 4.4% in the IA Mixed Investment 40-85% Shares Index. 
 
       INVESTMENT OBJECTIVE 
 
  The Company's investment objective is to achieve long-term capital growth. 
 
       INVESTMENT POLICY 
 
  The Company's investment policy is to allocate assets to global investment 
   opportunities through investment in equity, bond, commodity, real estate, 
       currency and other markets. The Company's assets may have significant 
       weightings to any one asset class or market, including cash. 
 
      The Company will invest in pooled investment vehicles, exchange traded 
     funds, futures, options, limited partnerships and direct investments in 
     relevant markets. The Company may invest up to 15% of its net assets in 
       direct investments in relevant markets. 
 
      The Company will not follow any index with reference to asset classes, 
  countries, sectors or stocks. Aggregate asset class exposure to any one of 
the United States, the United Kingdom, Europe ex UK, Asia ex Japan, Japan or 
   Emerging Markets and to any individual industry sector will be limited to 
  50% of the Company's net assets, such values being assessed at the time of 
  investment and for funds by reference to their published investment policy 
       or, where appropriate, their underlying investment exposure. 
 
       The Company may invest up to 20% of its net asset value in unlisted 
securities (excluding unquoted pooled investment vehicles) such values being 
   assessed at the time of investment. The Company will not invest more than 
  15% of its net assets in any single investment, such values being assessed 
       at the time of investment. 
 
   Derivative instruments and forward foreign exchange contracts may be used 
    for the purposes of efficient portfolio management and currency hedging. 
   Derivatives may also be used outside of efficient portfolio management to 
meet the Company's investment objective. The Company may take outright short 
 positions in relation to up to 30% of its net assets, with a limit on short 
 sales of individual stocks of up to 5% of its net assets, such values being 
 assessed at the time of investment. The Company may borrow up to 30% of net 
assets for short-term funding or long-term investment purposes. No more than 
       10%, in aggregate, of the value of the Company's total assets may be 
invested in other closed-ended investment funds except where such funds have 
themselves published investment policies to invest no more than 15% of their 
       total assets in other listed closed-ended investment funds. 
 
       SHARE CAPITAL 
 
     The Company's share capital comprises 305,000,000 Ordinary shares of 1p 
     each, of which 71,023,695 (2018: 71,023,695) have been issued and fully 
 paid. No Ordinary shares are held in treasury, and none were bought back or 
       issued during the six months to 31st December 2019. 
 
       PRINCIPAL RISKS AND UNCERTAINTIES 
 
  The principal risks identified by the Board, and the steps the Board takes 
       to mitigate them, are as follows: 
 
 Investment strategy: Inappropriate long-term strategy, asset allocation and 
       fund selection could lead to underperformance. The Board discusses 
    investment performance at each of its meetings and the Directors receive 
   reports detailing asset allocation, investment selection and performance. 
 
Business conditions and general economy: The Company's future performance is 
       heavily dependent on the performance of different equity and currency 
    markets. The Board cannot mitigate the risks arising from adverse market 
    movements. However, diversification within the portfolio will reduce the 
       impact. Further information is given in portfolio risks below. 
 
   Portfolio risks - market price, foreign currency and interest rate risks: 
 The twenty largest investments are listed above. Investment returns will be 
       influenced by interest rates, inflation, investor sentiment, 
   availability/cost of credit and general economic conditions in the UK and 
    globally. A proportion of the portfolio is in investments denominated in 
      foreign currencies and movements in exchange rates could significantly 
 affect their sterling value. The Investment Manager takes all these factors 
      into account when making investment decisions but the Company does not 
 normally hedge against foreign currency movements. The Board's policy is to 
     hold a spread of investments in order to reduce the impact of the risks 
arising from the above factors by investing in a spread of asset classes and 
       geographic regions. 
 
  Net asset value discount: The discount in the price at which the Company's 
  shares trade to net asset value means that shareholders cannot realise the 
       real underlying value of their investment. For a number of years the 
   Company's share price has been at a significant discount to the Company's 
      net asset value. The Directors review regularly the level of discount, 
however given the investor base of the Company, the Board is very restricted 
       in its ability to influence the discount to net asset value. 
 
      Investment Manager: The quality of the team employed by the Investment 
  Manager is an important factor in delivering good performance and the loss 
       of key staff could adversely affect returns. A representative of the 
  Investment Manager attends each Board meeting and the Board is informed if 
   any changes to the investment team employed by the Investment Manager are 
       proposed. 
 
       Tax and regulatory risks: A breach of The Investment Trust (Approved 
   Company) (Tax) Regulations 2011 (the 'Regulations') could lead to capital 
    gains realised within the portfolio becoming subject to UK capital gains 
   tax. A breach of the UKLA Listing Rules could result in suspension of the 
      Company's shares, while a breach of company law could lead to criminal 
       proceedings, financial and/or reputational damage. The Board employs 
       Brompton Asset Management LLP as Investment Manager, and Maitland 
     Administration Services Limited as Secretary and Administrator, to help 
       manage the Company's legal and regulatory obligations. 
 
      Operational: Disruption to, or failure of, the Investment Manager's or 
   Administrator's accounting, dealing or payment systems or the Custodian's 
records could prevent the accurate reporting and monitoring of the Company's 
financial position. The Company is also exposed to the operational risk that 
 one or more of its suppliers may not provide the required level of service. 
     The Company receives regular reports from its contracted third parties. 
 
INVESTMENT MANAGEMENT ARRANGEMENT AND RELATED PARTY TRANSACTIONS 
 
       In common with most investment trusts the Company does not have any 
       executive directors or employees. The day-to-day management and 
  administration of the Company, including investment management, accounting 
and company secretarial matters, and custodian arrangements are delegated to 
       specialist third party service providers. 
 
   Details of related party transactions are contained in the Annual Report. 
There have been no unusual material transactions with related parties during 
    the period which have had a significant impact on the performance of the 
       Company. 
 
       GOING CONCERN AND VIABILITY 
 
 The Directors believe that it is appropriate to continue to adopt the going 
concern basis in preparing the accounts as the assets of the Company consist 
      mainly of securities that are readily realisable or cash and it has no 
   significant liabilities. Investment income exceeds annual expenditure and 
     current liquid net assets cover current annual expenses for many years. 
   Accordingly, the Company is of the opinion that it has adequate financial 
   resources to continue in operational existence for the foreseeable future 
 which is considered to be in excess of five years. Five years is considered 
  a reasonable time for investors when making their investment decisions. In 
   reaching this view the Directors reviewed the anticipated level of annual 
    expenditure against the cash and liquid assets within the portfolio. The 
       Directors have also considered the risks the Company faces. 
 
       AUDITORS 
 The half year financial report has been reviewed, but not audited, by Ernst 
 & Young LLP pursuant to the Auditing Practices Board guidance on the Review 
       of Interim Financial Information. 
 
       RESPONSIBILITY STATEMENT 
 
       The Directors confirm that to the best of their knowledge: 
 
  - The financial statements contained within the half year financial report 
    to 31st December 2019 has been prepared in accordance with International 
       Accounting Standard 34 'Interim Financial Reporting'; 
 
   - The Chairman's statement, Directors' report or the Investment Manager's 
  report include a fair review of important events that have occurred during 
the first six months of the financial year and their impact on the financial 
       statements; 
 
   - The Chairman's statement, Directors' report or the Investment Manager's 
   report include a fair review of the potential risks and uncertainties for 
       the remaining six months of the year; and 
 
- The Director's report and note 8 to the half year financial report include 
a fair review of the information concerning transactions with the investment 
       manager and changes since the last annual report. 
 
       By order of the Board 
 
Maitland Administration Services Limited, 20th March 2020 
 
SCHEDULE OF TOP TWENTY INVESTMENTS at 31st December 2019 
 
Holding          Investment Type  Bid-market Value     % of Net 
                                                         Assets 
 
                                            GBP '000 
Fundsmith Equity Investment Fund             7,952         6.76 
Fund 
Embark Group     Unquoted                    6,990         5.95 
                 Investment 
Polar Capital -  Investment Fund             5,728         4.87 
Global 
Technology Fund 
FP Crux European Investment Fund             5,267         4.48 
Special 
Situations Fund 
Schroder Income  Investment Fund             4,945         4.21 
Fund 
Aberforth Split  Investment                  4,506         3.83 
Level Income     Company 
Trust 
MI Chelverton UK Investment Fund             4,405         3.75 
Equity Income 
Fund 
EF Brompton      Investment Fund             4,355         3.70 
Global 
Conservative 
Fund 
BlackRock        Investment Fund             3,926         3.34 
Continental 
European Income 
Fund 
Artemis Global   Investment Fund             3,925         3.34 
Income Fund 
BlackRock Gold & Investment Fund             3,735         3.18 
General Fund 
Aquilus          Investment Fund             3,721         3.17 
Inflection Fund 
Lindsell Train   Investment Fund             3,364         2.86 
Japanese Equity 
Fund 
EF Brompton      Investment Fund             2,981         2.53 
Global Equity 
Fund 
Man GLG UK       Investment Fund             2,973         2.53 
Income Fund 
EF Brompton      Investment Fund             2,962         2.52 
Global 
Opportunities 
Fund 
MI Brompton UK   Investment Fund             2,851         2.42 
Recovery Unit 
Trust 
EF Brompton      Investment Fund             2,830         2.41 
Global Growth 
Fund 
Liontrust Asia   Investment Fund             2,758         2.35 
Income Fund 
First State      Investment Fund             2,628         2.23 
Indian 
Subcontinent 
Fund 
                                            82,802        70.43 
Balance held in                             18,716        15.92 
21 investments 
Total                                      101,518        86.35 
investments 
(excluding cash) 
 
                                            16,041        13.65 
 
Net current 
assets 
(including cash)                           117,559       100.00 
 
Net Assets 
 
The investment portfolio, excluding cash, can be further 
analysed as follows: 
                                                          GBP'000 
Investment funds                                         84,023 
Unquoted investments                                      8,390 
 
Investment companies and exchange traded                  8,086 
funds 
 
                                                          1,019 
Other quoted investments 
 
                                                        101,518 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the six months ended 31st 
December 2019 (unaudited) 
 
                                    Six months ended 
 
                                   31st December 2019 
 
                                       (unaudited) 
                         Revenue Return Capital Return     Total 
                                                GBP '000 
 
                                 GBP '000                   Return 
                                                          GBP '000 
 
                   Notes 
INCOME 
Investment income                 1,127              -     1,127 
Other operating                     167              -       167 
income 
Total income         2            1,294              -     1,294 
GAINS AND LOSSES 
ON INVESTMENTS 
Losses on            5                -          5,022     5,022 
investments at 
fair value through 
profit or loss 
Other exchange                        -          (612)     (612) 
losses 
Trail rebates                         -              2         2 
                                  1,294          4,412     5,706 
EXPENSES 
Management and       3            (364)          (622)     (986) 
performance fees 
Other expenses                    (138)              -     (138) 
                                  (502)          (622)   (1,124) 
PROFIT /LOSS)                       792          3,790     4,582 
BEFORE TAX 
Tax                                   -              -         - 
PROFIT /(LOSS) FOR                  792          3,790     4,582 
THE PERIOD 
EARNINGS PER SHARE 
Ordinary shares      4            1.11p          5.34p     6.45p 
(pence) 
 
 The total return column of this statement represents the Group's profit and 
   loss account, prepared in accordance with IFRS. The supplementary Revenue 
Return and Capital Return columns are both prepared under guidance published 
by the Association of Investment Companies. All items in the above statement 
       derive from continuing operations. No operations were acquired or 
       discontinued during the period. 
 
     All income is attributable to the equity holders of the parent company. 
       There are no minority interests. 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
for the six months ended 31st December 2018 and the year ended 30th June 
2019 
 
                    Six months ended           Year ended 
 
                   31st December 2018        30th June 2019 
 
                       (unaudited)             (audited) 
           Notes Revenue Capital   Total Revenue Capital  Total 
                  Return  Return  Return  Return  Return Return 
 
                   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000  GBP'000 
INCOME 
Investment           930       -     930   1,890       -  1,890 
income 
Other                147       -     147     349       -    349 
operating 
income 
Total        2     1,077       -   1,077   2,239       -  2,239 
income 
 
GAINS AND 
LOSSES ON 
INVESTMENT 
S 
Gains on 
investment 
s at fair 
value 
through      5         - (6,168) (6,168)       -   1,992  1,992 
profit or 
loss 
Other                  -     405     405       -     443    443 
exchange 
losses 
Trail                  -       2       2       -       5      5 
rebates 
                   1,077 (5,761) (4,684)   2,239   2,440  4,679 
EXPENSES 
Management   3     (339)       -   (339)   (668)   (410) (1,098 
and                                                           ) 
performanc 
e fees 
Other              (131)       -   (131)   (266)       -  (266) 
expenses 
                   (470)       -   (470)   (954)   (410) (1,364 
                                                              ) 
PROFIT               607 (5,761) (5,154)   1,285   2,030  3,315 
BEFORE TAX 
Tax                    -       -       -       -       -      - 
PROFIT FOR           607 (5,761) (5,154)   1,285   2,030  3,315 
THE PERIOD 
EARNINGS 
PER SHARE 
Ordinary     4     0.85p (8.11)p (7.26)p   1.81p   2.86p  4.67p 
shares 
(pence) 
 
 The total return column of this statement represents the Group's profit and 
   loss account, prepared in accordance with IFRS. The supplementary Revenue 
Return and Capital Return columns are both prepared under guidance published 
by the Association of Investment Companies. All items in the above statement 
       derive from continuing operations. No operations were acquired or 
       discontinued during the periods. 
 
     All income is attributable to the equity holders of the parent company. 
       There are no minority interests. 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31st 
December 2019 (unaudited) 
 
                Share    Share      Special     Retained 
                       premium      reserve     earnings 
 
              capital                                      Total 
                        GBP '000       GBP '000       GBP '000 
 
               GBP '000                                     GBP '000 
 
At 30th JUNE      710   21,573       56,908       34,780 113,971 
2019 
Total               -        -            -        4,582   4,582 
comprehensive 
income for 
the period 
Dividend paid       -        -            -        (994)   (994) 
At 31st           710   21,573       56,908       38,368 117,559 
DECEMBER 2019 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31st 
December 2018 (unaudited) 
 
                Share    Share      Special     Retained 
                       premium      reserve     earnings 
 
              capital                                      Total 
                        GBP '000       GBP '000       GBP '000 
 
               GBP '000                                     GBP '000 
 
At 30th JUNE      710   21,573       56,908       32,175 111,366 
2018 
Total               -        -            -      (5,154) (5,154) 
comprehensive 
income for 
the period 
Dividend paid       -        -            -        (710)   (710) 
At 31st           710   21,573       56,908       26,311 105,502 
DECEMBER 2018 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 30th June 
2019 (audited) 
 
                Share    Share      Special     Retained 
                       premium      reserve     earnings 
 
              capital                                      Total 
                        GBP '000       GBP '000       GBP '000 
 
               GBP '000                                     GBP '000 
 
At 30th JUNE      710   21,573       56,908       32,175 111,366 
2018 
Total               -        -            -        3,315   3,315 
comprehensive 
income for 
the year 
Dividend paid       -        -            -        (710)   (710) 
At 30th JUNE      710   21,573       56,908       34,780 113,971 
2019 
 
CONSOLIDATED BALANCE SHEET at 31st December 2019 
 
                     Notes 31st December 31st December 30th June 
 
                                    2019          2018      2019 
 
                             (unaudited)   (unaudited) (audited) 
 
                                  GBP '000        GBP '000    GBP '000 
NON-CURRENT ASSETS 
Investments at fair 
value through profit 
or loss 
 
                       5         101,518        83,561    93,782 
 
CURRENT ASSETS 
Other receivables                    100           213       220 
Cash and cash                     16,786        21,938    20,605 
equivalents 
                                  16,886        22,151    20,825 
TOTAL ASSETS                     118,404       105,712   114,607 
CURRENT LIABILITIES 
Other payables                     (845)         (210)     (636) 
TOTAL ASSETS LESS 
CURRENT LIABILITIES 
 
                                 117,559       105,502   113,971 
NET ASSETS                       117,559       105,502   113,971 
 
EQUITY ATTRIBUTABLE 
TO EQUITY HOLDERS 
Called-up share                      710           710       710 
capital 
Share premium                     21,573        21,573    21,573 
Special reserve                   56,908        56,908    56,908 
Retained earnings      6          38,368        26,311    34,780 
 
TOTAL EQUITY                     117,559       105,502   113,971 
 
NET ASSET VALUE PER    7         165.52p       148.54p   160.47p 
ORDINARY SHARE 
(PENCE) 
 
The interim report was approved and authorised for issue by the Board on 
20th March 2020. 
 
CONSOLIDATED CASH FLOW STATEMENT for the six months ended 31st December 2019 
 
                              Six months    Six months      Year 
 
                                   ended         ended     ended 
 
                           31st December 31st December 30th June 
 
                                    2019          2018      2019 
 
                             (unaudited)   (unaudited) (audited) 
 
                                  GBP '000        GBP '000    GBP '000 
NET CASH INFLOW FROM                 501           644     1,334 
OPERATING ACTIVITIES 
INVESTING ACTIVITIES 
Purchase of investments          (2,722)       (2,023)   (4,340) 
Sale of investments                    8         8,595     8,851 
NET CASH INFLOW/(OUTFLOW) 
FROM INVESTING ACTIVITIES 
 
                                 (2,714)         6,572     4,511 
FINANCING 
Equity dividend paid               (994)         (710)     (710) 
NET CASH INFLOW/(OUTFLOW)        (3,207)         6,506     5,135 
AFTER FINANCING 
 
INCREASE /(DECREASE) IN          (3,207)         6,506     5,135 
CASH 
RECONCILIATION OF NET CASH 
FLOW TO MOVEMENT IN NET 
FUNDS 
Increase/(Decrease) in           (3,207)         6,506     5,135 
cash resulting from cash 
flows 
Exchange movements                 (612)           405       443 
Movement in net funds            (3,819)         6,911     5,578 
Net funds at start of             20,605        15,027    15,027 
period/year 
NET FUNDS AT OF               16,786        21,938    20,605 
PERIOD/YEAR 
RECONCILIATION OF 
(LOSS)/PROFIT BEFORE 
FINANCE COSTS AND TAXATION 
TO NET CASH FLOW FROM 
OPERATING ACTIVITIES 
Profit/( Loss) before              4,582       (5,154)     3,315 
finance costs and taxation 
* 
(Gains)/Loss on                  (5,022)         6,168   (1,992) 
investments 
Exchange differences                 612         (405)     (443) 
Management fee rebates               (2)           (2)       (5) 
Revenue profit before                170           607       875 
finance costs and taxation 
Decrease in debtors                  120            59        43 
Increase/(Decrease) in               209          (24)       402 
creditors 
Taxation                               -             -         9 
Management fee rebates                 2             2         5 
NET CASH INFLOW FROM                 501           644     1,334 
OPERATING ACTIVITIES 
 
* Includes dividends received in cash of GBP1,013,000 (30th June 2019: 
GBP1,599,000) (2018: GBP788,000), accumulation income of GBP222,000 (30th June 
2019: GBP278,000) (2018: GBP255,000) and interest income of GBP167,000 (30th June 
2019: GBP408,000) (2018: GBP84,000) 
 
NOTES TO THE INTERIM FINANCIAL STATEMENTS for the six months ended 31st 
December 2019 
 
1. ACCOUNTING POLICIES 
 
       The condensed consolidated interim financial statements comprise the 
 unaudited results of the Company and its subsidiary, JIT Securities Limited 
       (together "the Group"), for the six months to 31st December 2019. The 
    comparative information for the six months to 31st December 2018 and the 
year to 30th June 2019 are a condensed set of accounts and do not constitute 
statutory accounts under the Companies Act 2006. Full statutory accounts for 
    the year to 30th June 2019 included an unqualified audit report, did not 
contain any statements under section 498 of the Companies Act 2006, and have 
       been filed with the Registrar of Companies. 
 
    The half year financial statements have been prepared in accordance with 
 International Accounting Standard 34 'Interim Financial Reporting', and are 
   presented in pounds sterling, as this is the Group's functional currency. 
 
    The same accounting policies have been followed in the interim financial 
    statements as applied to the accounts for the year ended 30th June 2019, 
     which were prepared in accordance with IFRSs as adopted by the European 
       Union. 
 
      No segmental reporting is provided as the Group is engaged in a single 
       segment. 
 
2. TOTAL INCOME 
 
                       Six months     Six months Year ended 30th 
                       ended 31st     ended 31st            June 
                    December 2019  December 2018 
 
                                                            2019 
                            GBP'000          GBP'000 
 
                                                           GBP'000 
Income from 
Investments 
UK net dividend             1,045            792           1,691 
income 
Unfranked                      82            138             199 
investment income 
                            1,127            930           1,890 
Other Income 
Bank interest                 167            140             336 
receivable 
Loan interest                   -              7              13 
income 
                              167            147             349 
 
                       Six months     Six months Year ended 30th 
                       ended 31st     ended 31st            June 
                    December 2019  December 2018 
 
                                                            2019 
                            GBP'000          GBP'000 
 
                                                           GBP'000 
Total income 
comprises 
Dividends                   1,127            930           1,890 
Other income                  167            147             349 
                            1,294          1,077           2,239 
 
3. MANAGEMENT FEES 
 
                        Six months     Six months    Year ended 
                        ended 31st     ended 31st     30th June 
                     December 2019  December 2018 
 
                                                           2019 
                             GBP'000          GBP'000 
 
                                                          GBP'000 
Investment                     364            339           688 
management fee 
Performance fee                622              -           410 
                               986            339         1,098 
 
      The Investment Manager receives a management fee, payable quarterly in 
    arrears, equivalent to an annual 0.75 per cent of total assets after the 
 deduction of the value of any investments managed by the Investment Manager 
  or its associates (as defined in the investment management agreement). The 
     Investment Manager was also entitled to a performance fee of 15% of the 
    growth in net assets over a hurdle of 3-month Sterling LIBOR plus 1% per 
    annum, payable six monthly in arrears, subject to a high water mark. The 
aggregate of the Company's management fee and any performance fee is subject 
 to a cap of 4.99% of net assets in any financial year (with any performance 
   fee in excess of this cap capable of being earned in subsequent periods). 
 The performance fee will be charged 100% to capital, in accordance with the 
       Board's expectation of how any out-performance will be generated. A 
        performance fee of GBP622,000 was payable in respect of the period. 
 
       The Company has agreed with the Investment Manager that the existing 
     performance fee was not appropriate in a low interest rate environment. 
   Accordingly the current performance fee agreement ceased with effect from 
       1st January 2020. 
 
4. RETURN PER ORDINARY SHARE 
 
                      Six months Six months ended     Year ended 
                      ended 31st    31st December      30th June 
                   December 2019             2018 
 
                                                            2019 
                           GBP'000            GBP'000 
 
                                                           GBP'000 
 
Revenue return               792              607          1,285 
Capital return             3,790          (5,761)          2,030 
Total return               4,582          (5,154)          3,315 
 
Weighted average      71,023,695       71,023,695     71,023,695 
number of 
Ordinary shares 
 
Revenue return             1.11p            0.85p          1.81p 
per Ordinary 
share 
Capital return             5.34p          (8.11)p          2.86p 
per Ordinary 
share 
Total return per           6.45p          (7.26)p          4.67p 
Ordinary share 
 
5. INVESTMENTS AT FAIR VALUE THROUGH PROFIT AND LOSS 
 
                                 At                 At        At 
 
                      31st December 31st December 2018 30th June 
                               2019 
 
                                                 GBP'000      2019 
                              GBP'000 
 
                                                           GBP'000 
 
GROUP AND COMPANY           101,518             83,561    93,782 
 
ANALYSIS OF 
INVESTMENT 
PORTFOLIO - GROUP 
AND COMPANY 
Six months ended 
31st December 2019 
                            Listed*         Unlisted**     Total 
 
                    (level 1 and 2)          (level 3) 
 
                              GBP'000              GBP'000 GBP'000 
 
Opening book cost            60,372              8,448    68,820 
Opening investment           26,024            (1,062)    24,962 
holding 
gains/(losses) 
Opening valuation            86,396              7,386    93,782 
Movement in 
period: 
Purchase at cost              2,722                  -     2,722 
Sales 
- Proceeds                      (8)                  -       (8) 
- Realised gains                  8                  -         8 
on sales 
Movement in                   4,010              1,004     5,014 
investment holding 
gains/(losses) 
Closing valuation            93,128              8,390   101,518 
at 31 December 
2019 
 
Closing book cost            63,094              8,448    71,542 
Closing investment           30,034               (58)    29,976 
holding 
gains/(losses) 
Closing valuation            93,128              8,390   101,518 
 
* Listed investments include unit trust and OEIC funds which are valued at 
quoted prices. Included within Listed Investments is one monthly valued 
investment of GBP3,721,000 (30th June 2019: GBP3,698,000) (2018: GBP3,562,000). 
 
** The Unlisted investments, representing just over 7% of the Company's NAV, 
have been valued in accordance with IPEVC valuation guidelines. The largest 
unquoted investment amounting to GBP6,990,000 (30th June 2019: GBP5,942,000) 
(2018: GBP3,268,000) was valued at the latest transaction price. The second 
largest investment has been valued based on cost and is in its development 
phase. A 10% increase or decrease in the earnings of the largest investment 
would not have a material impact on the valuation of the investment. This 
investment has not reached maturity and is not valued on the basis of its 
current earnings. 
 
There were no reclassifications for assets between Level 1, 2 and 3. 
 
                     Six months ended Six months ended      Year 
 
                        31st December    31st December     ended 
                                 2019             2018 
 
                                                       30th June 
                                GBP'000            GBP'000 
 
                                                            2019 
 
                                                           GBP'000 
ANALYSIS OF CAPITAL 
GAINS AND LOSSES 
Realised gains on                   8            4,168     4,175 
sales of investments 
Increase in                     5,014         (10,336)   (2,183) 
investment holding 
gains/( losses) 
                                5,022          (6,168)     1,992 
 
6. RETAINED EARNINGS 
 
                                  At                At       At 
 
                       31st December     31st December     30th 
                                2019              2018     June 
 
                               GBP'000             GBP'000     2019 
 
                                                          GBP'000 
Capital reserve -              6,769             8,339    7,977 
realised 
Capital reserve -             29,959            16,809   24,962 
revaluation 
Revenue reserve                1,640             1,163    1,841 
                              38,368            26,311   34,780 
 
7. NET ASSET VALUE PER ORDINARY SHARE 
 
                      31st December     31st December 30th June 
                               2019              2018 
 
                                                           2019 
                              GBP'000             GBP'000 
 
                                                          GBP'000 
 
Net assets                  117,559           105,502   113,971 
attributable to 
Ordinary 
shareholders 
 
Ordinary shares in       71,023,695        71,023,695 71,023,69 
issue at end of                                               5 
period 
 
Net asset value             165.52p           148.54p   160.47p 
per Ordinary share 
 
8. TRANSACTIONS WITH THE INVESTMENT MANAGER 
 
    During the period there have been no new related party transactions that 
       have affected the financial position or performance of the Group. 
 
      Since 1st January 2010 Brompton has acted as Investment Manager to the 
  Company. This relationship is governed by an agreement dated 23rd December 
       2009. 
 
Mr Duffield is the senior partner of Brompton Asset Management Group LLP the 
    ultimate parent of Brompton. Mr Duffield owns a majority (59.14%) of the 
       shares in the Company. 
 
      Mr Gamble has an immaterial holding in Brompton Asset Management Group 
       Limited LLP. 
 
   The total investment management fee payable to Brompton for the half year 
     ended 31st December 2019 was GBP364,000 (30th June 2019: GBP688,000) (2018: 
   GBP339,000) and at the half year GBP183,000 (30th June 2019: GBP177,000) (2018: 
    GBP164,000) was accrued. The performance fee payable in respect of the six 
     months ended 31st December 2019 was GBP622,000 (30th June 2019: GBP410,000) 
  (2018: GBPnil). The existing performance fee arrangements ceased with effect 
       from 1 January 2020. 
 
      The Group's investments include seven funds managed by Brompton or its 
       associates valued at GBP20,551,000 (30th June 2019: GBP19,680,000) (2018: 
    GBP18,001,000). No investment management fees were payable directly by the 
       Company in respect of these investments. 
 
9. POST BALANCE SHEET EVENTS 
 
  Coronavirus and the current pandemic has resulted in a significant fall in 
the market and introduced significant market volatility. Further details are 
 provided in the Chairman's Statement and Investment Manager's Report above. 
 
   The Company's unaudited NAV per share was 136.12p and the share price was 
       95p at close of business on 19th March 2020. 
 
ISIN:           GB0002631041 
Category Code:  IR 
TIDM:           NSI 
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited 
                reviews 
Sequence No.:   53855 
EQS News ID:    1003555 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

March 20, 2020 12:53 ET (16:53 GMT)

1 Year New Star Investment Chart

1 Year New Star Investment Chart

1 Month New Star Investment Chart

1 Month New Star Investment Chart
ADVFN Advertorial
Your Recent History
LSE
NSI
New Star I..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20200605 20:15:01