We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| North American Income Trust (the) Plc | LSE:NAIT | London | Ordinary Share | GB00BJ00Z303 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.00 | 0.35% | 290.00 | 288.00 | 290.00 | 290.00 | 288.00 | 289.00 | 151,708 | 16:29:55 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Trust,ex Ed,religious,charty | 51.13M | 41.82M | 0.3000 | 9.67 | 404.2M |
From Apr 2019 to Apr 2024
TIDMNAIT
RNS Number : 3507Z
North American Income Trust (The)
18 September 2020
Legal Entity Identifier (LEI): 5493007GCUW7G2BKY360
18 September 2020
THE NORTH AMERICAN INCOME TRUST PLC
HALF YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS TO 31 JULY 2020
The investment objective of The North American Income Trust plc is to provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominantly of S&P 500 US equities.
INTERIM BOARD REPORT - CHAIRMAN'S STATEMENT
Performance
The six month period to 31 July 2020 has been one of the most challenging periods in recent history with global news and stock markets being dominated by the development of the Covid-19 pandemic. Over this period, the Company's net asset value (NAV) per share declined by 11.7% on a total return basis in sterling terms. This marginally underperformed the -10.7% return in sterling terms from the Russell 1000 Value Index, the Company's reference index. The slight underperformance resulted mainly from stock selection in the materials, utilities and consumer staples sectors. Conversely, stock selection in consumer discretionary, industrials and information technology sectors benefitted the Company's performance. The longer-term performance of the Company has been relatively strong. Over the five year period to 31 July 2020 , the Company's NAV total return was 64.6% compared to the 54.4% from the Russell 1000 Value Index in sterling terms.
Dividend
The revenue return per Ordinary share rose by 27.0% from 5.35p to 6.80p. The Board has declared a second quarterly dividend of 1.8p per share, giving total dividends for the first half of the year to 31 January 2021 of 3.6p (2020 - 3.4p), a 5.9% increase. The second quarterly dividend is payable on 30 October 2020 to shareholders on the register on 2 October 2020.
Portfolio
At 31 July 2020, equities represented 97% of total assets. Total revenue from these holdings was GBP8.3 million (2019 - GBP7.9m million). Most of the Company's equity holdings continued their established record of dividend growth. Over 19% of the holdings raised their dividends over the past six months, with a weighted average increase of 8.7%. The Company received premiums totalling GBP3.9 million (2019 - GBP1.9 million) in exchange for entering into stock option transactions. This option income, the generation of which remains consistent with the Manager's company-focused investment process, represented 31.6% of total income (2019 - 19.2%). The income from options premiums has benefited from the higher than usual market volatility in the spring. We do not expect that we will generate similar levels of option premium income in the second half of the year. Interest income of GBP300,000 from bonds was broadly similar to last year. Dividends will remain the primary source of income available for distribution. Further details of the portfolio are shown below.
Market & Economic Review
Major North American equity indices saw mixed performances in sterling terms during the half year. Large-cap value stocks recorded negative returns, significantly lagging their growth counterparts, which posted notable gains in sterling terms. In February and March, investors' fears surrounding the impact of the worldwide spread of the Covid-19 pandemic on the global economy sent a shockwave through the US and global financial markets. US stocks rallied sharply over the next three months as investors gained more comfort in an improving macroeconomic backdrop, given monetary policy support from the Fed with large injections of liquidity as well as vast fiscal stimulus packages that provided a safety net for the unemployed and forgivable loans that allowed small businesses to survive payroll and rent obligations. However, the market fell towards the end of the reporting period amid growing concerns about spikes in Covid-19 cases. The energy, financials and real estate sectors saw double-digit losses and this led the downturn in the Russell 1000 Value Index. In contrast, the materials, healthcare and consumer staples sectors produced positive returns and were the strongest performers within the index.
Regarding monetary policy, in response to the market carnage, the US Federal Reserve (Fed) reduced its benchmark interest rate by 1% to a range of 0.0% to 0.25%. In a statement issued following its meeting in late July, the Fed commented that the Covid-19 pandemic "poses considerable risks to the economic outlook over the medium term". As expected, the pandemic wreaked havoc on the economy in the first half of 2020. US GDP decreased at an annual rate of 5% in the first three months of the year, and then tumbled 32% in the second quarter - the largest decline since the US government began tracking the data on a quarterly basis in 1947. Interestingly, preliminary estimates of US GDP for Q3 have been upgraded and most recent publications are indicating quarter on quarter growth in the 25% to 30% range which would have been deemed highly unlikely just a few months ago.
Discount/ Premium
The Company's share price fell by 23.1% to 223.0p and ended the period at a 10.4% discount to the net asset value, compared with a small premium of 0.4% at the end of January 2020. The Board continues to work with the Manager in both promoting the Company's benefits to a wider audience and providing liquidity to the market through the use of share buybacks when it is considered that it is in the interest of continuing shareholders to do so. Since the end of July, 24,960 shares were bought back.
Gearing
The Board believes that sensible use of financial gearing should enhance returns to our shareholders over the longer term. The total amount available under the Company's loan facility agreement with Scotiabank (Ireland) Designated Activity Company is $75 million, of which $25 million was drawn down at the Company's financial year end. During the period under review, a further $10 million of the loan facility was used, resulting in $35 million being drawn down at the period end. This modest increase in borrowing was used as opportunities began to arise during the market sell-off as well as having cash as collateral for selling put options. Net gearing at 31 July 2020 was 2.0% (31 January 2020: nil).
Outlook
As many countries, including the US, began their phased-in re-openings of their economies during the second quarter, the market has been more optimistic that the economy can eventually move past the impact of the initial lockdowns. With the reporting of some of the larger retail companies a few weeks ago, the US corporate earnings season has all but come to a close. Generally, financial performance throughout the earnings season fared better than the market had initially feared and was helped by the government's stimulus package, which benefitted consumer health and provided a lifeline to many businesses.
Despite the recent performance, visibility regarding future earnings remain cloudy as a lack of systemic approach to containing the pandemic fuels concerns with regards to the likelihood of a second wave. In the US, unemployment benefits have begun to roll-off and an additional stimulus package is likely to be needed for many who have been unable to return to work. If future stimulus remains held up by political wrangling in Washington, there are greater concerns with regards to the health of the consumer in the near term, but we understand the incentive to continue some of these programs as we enter the November election season. Furthermore, while the overall goal is to build an all-weather portfolio, the election season has the potential to provide a wide range of outcomes and the Manager will look to shape the portfolio to help insulate it from these risks.
The wider-than-normal range of views in the market is producing opportunities for investment as the Manager continues to find opportunities to buy high quality, well-managed businesses at fair prices.
James Ferguson,
Chairman
17 September 2020
INTERIM BOARD REPORT - OTHER MATTERS
PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. The Board has considered the principal risks and uncertainties facing the Company together with a description of the mitigating actions it has taken. They can be summarised under the following headings:
- Market Risk - Pandemic or Systemic Shock - Income and Dividend Risk - Operational - Regulatory Risk - Gearing Risk - Discount Volatility - Derivatives
Details of these risks are provided in detail on pages 9 to 11 of the 2020 Annual Report.
In addition to these risks, there are also a large number of international political and economic uncertainties which could have an impact on the performance of global markets. The outbreak of the COVID-19 virus has resulted in business disruption and stockmarket volatility across the world. The extent of the effect of the virus, including its long term impact, remains uncertain. The Manager has undertaken a detailed review of the investee companies in the Company's portfolio to assess the impact of COVID-19 on their operations such as employee absence, reduced demand, reduced turnover and supply chain breakdowns and will review carefully the composition of the Company's portfolio and will be pro-active where necessary. The Manager has implemented extensive business continuity procedures and contingency arrangements to ensure that they are able to continue to service their clients, including investment trusts.
The outcome and potential impact of Brexit remains an economic risk for the Company. As an investment trust with a North American mandate, the Company's portfolio is unlikely to be adversely impacted as a direct result of Brexit although some currency volatility could arise. The uncertainty surrounding Brexit could impact investor sentiment and could lead to increased or reduced demand for the Company's shares, which would be reflected in a narrowing or widening of the discount at which the Company's shares trade relative to their net asset value. Aberdeen Standard Investments has a significant Brexit program in place aimed at ensuring that they can continue to satisfy their clients' investment needs post Brexit.
The Board will continue to monitor developments as they occur.
In all other respects, the Company's principal risks and uncertainties have not changed nor are they expected to change in the second half of the financial year ending 31 January 2021.
Going Concern
In accordance with the Financial Reporting Council's Guidance on Risk Management, Internal Control and Related Financial and Business, the Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the adoption of the going concern basis of accounting is appropriate. The Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and, in most circumstances, are realisable within a short timescale.
The Company has a bank credit facility in place which is available until December 2020. Initial discussions with banks have commenced with a view to renewing the facility.
The Directors have a reasonable expectation that the Company has adequate financial resources to continue in operational existence for the foreseeable future and the ability to meet all its liabilities and ongoing expenses from its assets. Given that the Company's portfolio comprises primarily "Level One" assets (listed on a recognisable exchange and realisable within a short timescale), and the Company's relatively low level of gearing, the Directors believe that adopting a going concern basis of accounting remains appropriate.
Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Directors' Responsibility Statement
The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:
- the condensed set of Financial Statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);
- the Half-Yearly Board Report includes a fair review of the information required by rule 4.2.7R of the Disclosure and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and 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 financial year); and
- the Half-Yearly Board Report includes a fair review of the information required by 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so).
The Half-Yearly Financial Report for the six months ended 31 July 2020 comprises the Interim Board Report, the Directors' Responsibility Statement and the condensed set of Financial Statements.
For and on behalf of the Board of The North American Income Trust plc
James Ferguson,
Chairman
17 September 2020
FINANCIAL HIGHLIGHTS
Hot Features
Premium
Net asset value total Russell 1000 Value Share price total return{A}
return{A} Index
Six months ended 31 Six months ended 31 Six months ended 31
July 2020: July 2020: July 2020:
-11.7% -10.7% -21.1%
Year ended 31 January Year ended 31 January Year ended 31 January
2020: +6.2% 2020: +14.6% 2020: +11.5%
Earnings per Ordinary (Discount)/premium Net gearing /(cash){A}
share (revenue) to net asset value{A}
Six months ended 31 As at 31 July 2020: As at 31 July 2020:
July 2020:
6.80p -10.4% 2.0%
Six months ended 31 As at 31 January 2020: As at 31 January 2020:
July 2020: 0.4% (0.9%)
5.35p
{A} Considered to be an Alternative Performance Measure. Further
details can be found below.
As at As at
31 July 2020 31 January % Capital
2020 return
Net asset value per Ordinary
share 249.0p 288.9p -13.8
Share price per Ordinary share
(mid) 223.0p 290.0p -23.1
(Discount)/premium to net asset
value{A} -10.4% 0.4%
Net gearing/(cash){A} 2.0% (0.9%)
Ongoing charges ratio{A} 0.94% 0.91%
{A} Considered to be an Alternative Performance Measure. Further
details can be found below.
Six months Six months
to to
31 July 2020 31 July 2019 % change
Revenue return per Ordinary share 6.80p 5.35p +27.0
Interim dividends 3.60p{A} 3.40p{B} +6.0
{A} Includes a first interim dividend of 1.80p paid on 7 August
2020 and a second interim dividend of 1.80p payable on 30 October
2020.
{B} Includes a first interim dividend of 1.70p paid on 2 August
2019 and a second interim dividend of 1.70p paid on 25 October
2019.
PERFORMANCE (TOTAL RETURN) {A}
6 months Year ended 3 Years 5 years
ended ended ended
31 July 31 July 31 July 31 July
2020 2020 2020 2020
% % % %
Net asset value per Ordinary
share{A} -11.7 -16.9 4.6 64.6
Share price per Ordinary
share{A} -21.1 -25.9 4.3 64.3
Russell 1000 Value Index -10.7 -12.3 8.8 54.4
S&P 500 Index (in sterling
terms) 2.9 4.5 41.2 104.8
{A} Total return represents capital return plus dividends reinvested.
Considered to be an Alternative Performance Measure. Further
details can be found below.
INVESTMENT PORTFOLIO
TEN LARGEST INVESTMENTS
As at 31 July 2020
Abbvie Verizon Communications
AbbVie Inc. researches and develops Verizon Communications Inc.,
pharmaceutical products. The Company through its subsidiaries, provides
produces pharmaceutical drugs communications information,
for specialty therapeutic areas and entertainment products
such as immunology, chronic kidney and services to consumers,
disease, hepatitis C, women's businesses, and governmental
health, oncology, and neuroscience. agencies worldwide.
Philip Morris Bristol-Myers Squib
Philip Morris International Inc., Bristol-Myers Squibb Company
through its subsidiaries, manufactures is a global biopharmaceutical
and sells cigarettes and other company. The Company develops,
tobacco products. licenses, manufactures, markets,
and sells pharmaceutical and
nutritional products.
Citigroup Lockheed Martin
Citigroup Inc. is a diversified Lockheed Martin Corp. is a
financial services holding company global security company that
that provides a broad range of primarily researches, designs,
financial services to consumer manufactures and integrates
and corporate customers. advanced technology and defense
products and services.
TC Energy Gilead Sciences
TC Energy Corp is the parent company Gilead Sciences, Inc. is a
of TransCanada PipeLines Limited. research-based biopharmaceutical
The Company is focused on natural company that discovers, develops,
gas transmission and power services. and commercializes therapeutics
to advance the care of patients
suffering from life-threatening
diseases.
Restaurant Brands International Cisco Systems
Restaurant Brands International Cisco Systems Inc. designs,
Inc. operates fast food restaurants. manufactures, and sells Internet
The Company offers owns and manages Protocol (IP)- based networking
quick service restaurants. Restaurant and other products related
Brands International serves customers to the communications and information
worldwide. technology industry and provides
services associated with these
products and their use.
INVESTMENT PORTFOLIO - FIXED INTEREST
As at 31 July 2020
Valuation Valuation
Company Industry classification GBP'000 %
Abbvie Biotechnology 21,694 5.9
Diversified Telecommunication
Verizon Communications Services 19,707 5.4
Philip Morris Tobacco 17,557 4.8
Bristol-Myers Squib Pharmaceuticals 16,983 4.7
Citigroup Banks 15,241 4.2
Lockheed Martin Aerospace & Defense 14,437 4.0
Oil, Gas & Consumable
TC Energy Fuels 13,890 3.8
Gilead Sciences Biotechnology 13,244 3.6
Hotels, Restaurants
Restaurant Brands International & Leisure 10,766 3.0
Cisco Systems Communications Equipment 10,766 3.0
Ten largest investments 154,285 42.4
CME Group Capital Markets 10,762 3.0
Health Care Providers
UnitedHealth & Services 10,381 2.9
PNC Financial Services Banks 10,159 2.8
Oil, Gas & Consumable
Chevron Fuels 9,593 2.6
Regions Financial Banks 8,274 2.3
Home Depot Specialty Retail 8,091 2.2
Health Care Equipment
Medtronic & Supplies 8,086 2.2
Textiles, Apparel
Hanesbrands & Luxury Goods 8,074 2.2
Equity Real Estate
Investment Trusts
Omega Healthcare Investors (REITs) 8,018 2.2
FirstEnergy Electric Utilities 7,734 2.1
Twenty largest investments 243,457 66.9
Nutrien Chemicals 7,449 2.0
Royal Bank of Canada Banks 7,358 2.0
American International Insurance 7,346 2.0
Coca-Cola Beverages 7,199 2.0
Oil, Gas & Consumable
Phillips 66 Fuels 7,088 1.9
Equity Real Estate
Investment Trusts
Gaming & Leisure Properties (REITs) 6,982 1.9
Equity Real Estate
Investment Trusts
Digital Realty (REITs) 6,116 1.7
Union Pacific Road and Rail 5,943 1.6
Nucor Metals and Mining 5,753 1.6
Honeywell Industrial Conglomerates 5,690 1.6
Thirty largest investments 310,381 85.2
Huntington Bancshares Banks 5,650 1.6
Dow Chemicals 5,631 1.6
Blackstone Capital Markets 5,074 1.4
Procter & Gamble Household Products 4,995 1.4
Semiconductors & Semiconductor
Texas Instruments Equipment 4,859 1.3
Tiffany & Co Speciality Retail 4,776 1.3
Genuine Parts Distributors 4,465 1.2
United Parcel Service Air Freight & Logistics 3,807 1.1
Semiconductors & Semiconductor
Maxim Integrated Products Equipment 3,372 0.9
HCA 5.875% 15/02/26 Healthcare Services 1,638 0.4
Forty largest investments 354,648 97.4
CCO Holdings Capital 5.5% 01/05/26 Media 1,606 0.4
Cheniere Corpus Christi 5.875% Oil, Gas & Consumable
31/03/25 Fuels 1,291 0.4
CSC Holdings 10.875% 15/10/25 Media 1,243 0.4
Parsley Energy Finance 5.375%
15/01/25 Exploration & Production 1,180 0.3
Lennar 4.5% 30/04/24 Construction 1,075 0.3
Valeant Pharmaceutic 8.5% 31/01/27 Biotechnology 1,031 0.3
Qwest Cap Funding 7.75% 15/02/31 Telecommunications 877 0.2
Diamond 1 Fin Diamond 2 6.02%
15/06/26 Technology 684 0.2
NRG Energy 5.25% 15/06/29 Electric 396 0.1
Six Flags Theme Park 7% 01/07/25 Recreation Facilities 54 -
and Services
Total investments 364,085 100.0
GEOGRAPHICAL ANALYSIS
Equity Fixed interest Total
Country % % %
Canada 10.8 - 10.8
USA 86.2 3.0 89.2
______ ______ ______
97.0 3.0 100.0
______ ______ ______
ALTERNATIVE PERFORMANCE MEASURES
Alternative performance measures are numerical measures of the
Company's current, historical or future performance, financial
position or cash flows, other than financial measures defined
or specified in the applicable financial framework. The Company's
applicable financial framework includes FRS 102 and the AIC SORP.
The Directors assess the Company's performance against a range
of criteria which are viewed as particularly relevant for closed-end
investment companies.
Total return. NAV and share price total returns show how the
NAV and share price has performed over a period of time in percentage
terms, taking into account both capital returns and dividends
paid to shareholders. NAV total return involves investing the
net dividend in the NAV of the Company with debt at fair value
on the date on which that dividend goes ex-dividend. Share price
total return involves reinvesting the net dividend in the share
price of the Company on the date on which that dividend goes ex-dividend.
The tables below provide information relating to the NAVs and
share prices of the Company on the dividend reinvestment dates
during the six months ended 31 July 2020 and the year ended 31
July 2020 and total return for the periods.
Dividend Share
Six months ended 31 July 2020 rate NAV price
31 January 2020 N/A 288.91p 290.00p
7 May 2020 4.30p 246.89p 233.00p
16 July 2020 1.80p 259.66p 224.50p
31 July 2020 N/A 248.99p 223.00p
______ ______
Total return -11.7% -21.1%
______ ______
Dividend Share
Year ended 31 July 2020 rate NAV price
31 July 2019 N/A 310.44p 312.50p
3 October 2019 1.70p 292.11p 294.50p
24 January 2020 1.80p 294.08p 290.00p
7 May 2020 4.30p 246.89p 233.00p
16 July 2020 1.80p 259.66p 224.50p
31 July 2020 N/A 248.99p 223.00p
______ ______
Total return -16.9% -25.9%
______ ______
Net gearing/cash. Net gearing/(cash) measures cash and cash equivalents
of GBP19,473,000 (31 January 2020 - GBP22,724,000) less total
borrowings of GBP26,667,000 (31 January 2020 - GBP18,965,000)
divided by shareholders' funds of GBP356,752,000 (31 January 2020
- GBP413,948,000), expressed as a percentage. Under AIC reporting
guidance cash and cash equivalents includes net amounts due from
brokers at the year end of GBP262,000 (31 January 2020 - due from
brokers of GBP826,000) as well as cash and short term deposits
of GBP19,735,000 (31 January 2020 - GBP21,898,000).
(Discount)/premium. The difference between the share price of
223.00p (31 January 2020 - 290.00p) and the net asset value per
Ordinary share of 248.99p (31 January 2020 - 288.91p) expressed
as a percentage of the net asset value per Ordinary share.
Ongoing charges ratio. The ongoing charges ratio has been calculated
in accordance with guidance issued by the AIC which is defined
as the total of investment management fees and administrative
expenses and expressed as a percentage of the average net asset
values with debt at fair value throughout the year. The ratio
for 31 July 2020 is based on forecast ongoing charges for the
year ending 31 January 2021.
31 July 31 January
2020 2020
Investment management fees (GBP'000) 2,670 3,060
Administrative expenses (GBP'000) 732 757
______ ______
Ongoing charges (GBP'000) 3,402 3,817
______ ______
Average net assets{A} (GBP'000) 361,817 420,761
______ ______
Ongoing charges ratio 0.94% 0.91%
______ ______
{A} During both years net asset values with debt at fair value
equated to net asset value with debt at amortised cost due to
the short-term nature of the bank loans.
The ongoing charges ratio provided in the Company's Key Information
Document is calculated in line with the PRIIPs regulations which
includes finance costs and transaction charges.
CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Six months ended
31 July 2020
Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000
(Losses)/gains on investments - (57,265) (57,265)
Exchange losses - (250) (250)
Income 2 12,245 223 12,468
Investment management fee (399) (931) (1,330)
Administrative expenses 3 (379) - (379)
______ ______ ______
Net return before finance costs
and taxation 11,467 (58,223) (46,756)
Finance costs (65) (152) (217)
______ ______ ______
Return before taxation 11,402 (58,375) (46,973)
Taxation 4 (1,663) 180 (1,483)
______ ______ ______
Return after taxation 9,739 (58,195) (48,456)
______ ______ ______
Return per share (pence) 6 6.80 (40.62) (33.82)
______ ______ ______
The total column of the Condensed Statement of Comprehensive
Income is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from
continuing operations.
The accompanying notes are an integral part of the financial
statements.
CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
(Cont'd)
Six months ended
31 July 2019
Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000
(Losses)/gains on investments - 44,847 44,847
Exchange losses - (1,101) (1,101)
Income 2 9,923 - 9,923
Investment management fee (463) (1,081) (1,544)
Administrative expenses 3 (374) - (374)
______ ______ ______
Net return before finance costs
and taxation 9,086 42,665 51,751
Finance costs (181) (421) (602)
______ ______ ______
Return before taxation 8,905 42,244 51,149
Taxation 4 (1,297) 325 (972)
______ ______ ______
Return after taxation 7,608 42,569 50,177
______ ______ ______
Return per share (pence) 6 5.35 29.95 35.30
______ ______ ______
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
As at As at
31 July 31 January
2020 2020
Notes GBP'000 GBP'000
Non-current assets
Investments at fair value through profit
or loss 364,085 410,800
______ ______
Current assets
Debtors and prepayments 2,363 1,804
Cash and short-term deposits 19,735 21,898
______ ______
22,098 23,702
______ ______
Creditors: amounts falling due within
one year
Traded options (127) (668)
Other creditors (2,637) (921)
Bank loan (26,667) (18,965)
______ ______
(29,431) (20,554)
______ ______
Net current (liabilities)/assets (7,333) 3,148
______ ______
Net assets 356,752 413,948
______ ______
Capital and reserves
Called-up share capital 7,164 7,164
Share premium account 51,806 51,806
Capital redemption reserve 15,452 15,452
Capital reserve 8 260,728 318,923
Revenue reserve 21,602 20,603
______ ______
Equity shareholders' funds 356,752 413,948
______ ______
Net asset value per share (pence) 9 248.99 288.91
______ ______
The accompanying notes are an integral part of the financial
statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Six months ended 31
July 2020
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31 January
2020 7,164 51,806 15,452 318,923 20,603 413,948
Return after taxation - - - (58,195) 9,739 (48,456)
Dividends paid (note
5) - - - - (8,740) (8,740)
______ ______ ______ ______ ______ ______
Balance at 31 July 2020 7,164 51,806 15,452 260,728 21,602 356,752
______ ______ ______ ______ ______ ______
Six months ended 31
July 2019
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31 January
2019 7,108 48,467 15,452 310,920 16,710 398,657
Return after taxation - - - 42,569 7,608 50,177
Dividends paid (note
5) - - - - (7,534) (7,534)
______ ______ ______ ______ ______ ______
Balance at 31 July 2019 7,108 48,467 15,452 353,489 16,784 441,300
______ ______ ______ ______ ______ ______
The accompanying notes are an integral part of the financial statements.
CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)
Six months Six months
ended ended
31 July 2020 31 July 2019
GBP'000 GBP'000
Operating activities
Net return before taxation (46,973) 51,149
Adjustments for:
Net losses/(gains) on investments 57,667 (44,847)
Realised losses on foreign exchange transactions 250 1,101
(Increase)/decrease in dividend income
receivable (326) 156
(Increase)/decrease in fixed interest
income receivable (7) 20
Increase in derivatives (542) (136)
(Increase)/decrease in other debtors (19) 18
(Decrease)/increase in other creditors (11) 378
Tax on overseas income (1,048) (875)
Amortisation of fixed income book cost 4 8
Stock dividends included in investment (95) -
income
______ ______
Net cash flow from operating activities 8,900 6,972
Investing activities
Purchases of investments (107,744) (79,212)
Sales of investments 97,969 99,636
______ ______
Net cash flow from investing activities (9,775) 20,424
Financing activities
Equity dividends paid (8,740) (7,534)
Drawdown/(repayment) of loans 8,030 (7,729)
______ ______
Net cash used in financing activities (710) (15,263)
______ ______
(Decrease)/increase in cash (1,585) 12,133
______ ______
Analysis of changes in cash during the
period
Opening balance 21,898 18,593
Effect of exchange rate fluctuations
on cash held (578) 1,286
(Decrease)/increase in cash as above (1,585) 12,133
______ ______
Closing balance 19,735 32,012
______ ______
The accompanying notes are an integral part of the
financial statements.
NOTES:
1. Accounting policies
Basis of preparation. The condensed financial statements
have been prepared in accordance with Financial Reporting
Standard 104 (Interim Financial Reporting) and with the Statement
of Recommended Practice for 'Financial Statements of Investment
Trust Companies and Venture Capital Trusts'. They have also
been prepared on a going concern basis and on the assumption
that approval as an investment trust will continue to be
granted. Annual financial statements are prepared under Financial
Reporting Standard 102.
The condensed interim financial statements have been prepared
using the same accounting policies as the preceding annual
financial statements.
2. Income
Six months Six months
ended ended
31 July 2020 31 July 2019
GBP'000 GBP'000
Income from overseas listed investments
Dividend income 7,454 7,136
REIT income 494 411
Interest income from investments 306 322
Stock dividends 95 -
______ ______
8,349 7,869
______ ______
Other income from investment activity
Traded option premiums 3,871 1,903
Deposit interest 25 151
______ ______
3,896 2,054
______ ______
Total income 12,245 9,923
______ ______
3. Administrative expenses
Six months Six months
ended ended
31 July 31 July
2020 2019
GBP'000 GBP'000
Directors' fees 62 62
Secretarial and administration fees 59 58
Promotional activities 108 104
Auditor's remuneration:
Fees payable to the Company's auditor
for the audit of the annual accounts 15 9
Custodian charges 8 10
Registrar's fees 18 34
Professional fees 24 17
Depositary charges 23 26
Other 62 54
______ ______
379 374
______ ______
4. Taxation. The taxation expense reflected in the Condensed
Statement of Comprehensive Income is based on the estimated
annual tax rate expected for the full financial year. The
estimated annual corporation tax rate used for the year to
31 January 2021 is 19% (2020 - 19%).
Detailed below is an analysis of the tax charge for each
period.
Six months ended Six months ended 31
31 July 2020 July 2019
Revenue Capital Total Revenue Capital Total
Taxation GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
UK corporation tax 670 (205) 465 325 (325) -
Double tax relief (33) - (33) - - -
Overseas tax suffered 1,023 25 1,048 972 - 972
Deferred tax 5 - 5 - - -
Double tax relief
on deferred tax items (2) - (2) - - -
_____ _____ _____ _____ _____ _____
Total tax charge for
the period 1,663 (180) 1,483 1,297 (325) 972
_____ _____ _____ _____ _____ _____
5. Dividends
Six months Six months
ended ended
31 July 2020 31 July 2019
GBP'000 GBP'000
3rd interim dividend for 2020 - 1.8p
(2019 - 1.7p) 2,579 2,417
Final dividend for 2020 - 4.3p (2019
- 3.6p) 6,161 5,117
______ ______
8,740 7,534
______ ______
The Company pays four dividends per year. The first interim
dividend of 1.80p (2020 - 1.70p) for the year ending 31 January
2021 was paid on 7 August 2020 to shareholders on the register
at 17 July 2020, with an ex-dividend date of 16 July 2020.
A second interim dividend of 1.80p (2020 - 1.70p) for the
year ending 31 January 2021, will be paid on 30 October 2020
to shareholders on the register at 2 October 2020. The ex-dividend
date is 1 October 2020.
6. Return per Ordinary share
Six months Six months
ended ended
31 July 2020 31 July 2019
GBP'000 GBP'000
Based on the following figures:
Revenue return 9,739 7,608
Capital return (58,195) 42,569
______ ______
Total return (48,456) 50,177
______ ______
Weighted average number of shares
in issue 143,277,520 142,152,520
__________ __________
p p
Revenue return per Ordinary share 6.80 5.35
Capital return per Ordinary share (40.62) 29.95
______ ______
Total return per Ordinary share (33.82) 30.30
______ ______
7. Transaction costs. During the six months ended 31 July 2020
expenses were incurred in acquiring or disposing of investments
classified as fair value through profit or loss. These have
been expensed through capital and are included within (losses)/gains
on investments in the Condensed Statement of Comprehensive
Income. The total costs were as follows:
Six months Six months
ended ended
31 July 2020 31 July 2019
GBP'000 GBP'000
Purchases 45 31
Sales 117 73
______ ______
162 104
______ ______
8. Capital reserve. The capital reserve reflected in the Condensed
Statement of Financial Position at 31 July 2020 includes
losses of GBP29,000 (31 January 2020 - gains GBP21,899,000)
which relate to the revaluation of investments held at the
reporting date.
9. Net asset value per Ordinary share
As at As at
31 July 2020 31 January
2020
Net assets attributable (GBP'000) 356,752 413,948
Number of Ordinary shares in issue 143,277,520 143,277,520
Net asset value per Ordinary share
(p) 248.99 288.91
10. Analysis of changes in
net debt
At At
31 January Currency Cash 31 July
2020 differences flows 2020
GBP'000 GBP'000 GBP'000 GBP'000
Cash and short term deposits 21,898 (578) (1,585) 19,735
Debt due within one year (18,965) 328 (8,030) (26,667)
______ ______ ______ ______
2,933 (250) (9,615) (6,932)
______ ______ ______ ______
At At
31 January Currency Cash 31 July
2019 differences flows 2019
GBP'000 GBP'000 GBP'000 GBP'000
Cash and short term deposits 18,593 1,286 12,133 32,012
Debt due within one year (38,010) (2,387) 7,729 (32,668)
______ ______ ______ ______
(19,417) (1,101) 19,862 (656)
______ ______ ______ ______
A statement reconciling the movement in net funds to the
net cash flow has not been presented as there are no differences
from the above analysis.
11. Fair value hierarchy. FRS 102 requires an entity to classify
fair value measurements using a fair value hierarchy that
reflects the significance of the inputs used in making the
measurements. The fair value hierarchy shall have the following
classifications:
Level 1: unadjusted quoted prices in an active market for
identical assets or liabilities that the entity can access
at the measurement date.
Level 2: inputs other than quoted prices included within
Level 1 that are observable (ie developed using market data)
for the asset or liability, either directly or indirectly.
Level 3: inputs are unobservable (ie for which market data
is unavailable) for the asset or liability.
The financial assets and liabilities measured at fair value
in the Condensed Statement of Financial Position are grouped
into the fair value hierarchy at the reporting date as follows:
Level Level Level Total
1 2 3
As at 31 July 2020 Note GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair
value through profit or loss
Quoted equities a) 353,010 - - 353,010
Quoted bonds b) - 11,075 - 11,075
______ ______ ______ ______
Total 353,010 11,075 - 364,085
______ ______ ______ ______
Financial liabilities at
fair value through profit
or loss
Derivatives c) - (127) - (127)
______ ______ ______ ______
Net fair value 353,010 10,948 - 363,958
______ ______ ______ ______
Level Level Level Total
1 2 3
As at 31 January 2020 Note GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair
value through profit or loss
Quoted equities a) 402,149 - - 402,149
Quoted bonds b) - 8,651 - 8,651
______ ______ ______ ______
Total 402,149 8,651 - 410,800
______ ______ ______ ______
Financial liabilities at
fair value through profit
or loss
Derivatives c) - (668) - (668)
______ ______ ______ ______
Net fair value 402,149 7,983 - 410,132
______ ______ ______ ______
a) Quoted equities. The fair value of the Company's investments
in quoted equities has been determined by reference to
their quoted prices at the reporting date. Quoted equities
included in Fair Value Level 1 are actively traded on
recognised stock exchanges.
b) Quoted bonds. The fair value of the Company's investments
in quoted bonds has been determined by reference to their
quoted bid prices at the reporting date. Investments
categorised as Level 2 are not considered to trade in
active markets
c) Derivatives. The Company's investment in exchange traded
options have been fair valued using quoted prices and
have been classified as Level 2 as they are not considered
to trade in active markets.
12. Transactions with the Manager. The Company has an agreement
with Aberdeen Standard Fund Managers Limited ("ASFML" or
the "Manager") for the provision of investment management,
secretarial, accounting and administration and promotional
activity services.
The annual management fee is charged on gross assets after
deducting current liabilities and borrowings and excluding
commonly managed funds (Net Assets), on a tiered basis. The
annual management fee is charged at 0.75% of Net Assets up
to GBP350 million, 0.6% of Net Assets between GBP350 million
and GBP500 million, and 0.5% of Net Assets above GBP500 million.
The management fee is chargeable 30% to revenue and 70% to
capital. During the period GBP1,330,000 (31 July 2019 - GBP1,544,000)
of investment management fees were payable to the Manager,
with a balance of GBP670,000 (31 July 2019 - GBP800,000)
being due to ASFML at the period end.
The secretarial fee of GBP118,000 per annum is chargeable
100% to revenue and is payable monthly in arrears. During
the period GBP59,000 (31 July 2019 - GBP58,000) of secretarial
fees were payable to the Manager, with a balance of GBP20,000
(31 July 2019 - GBP19,000) being due to ASFML at the period
end.
The promotional activities fee is based on a current annual
amount of GBP216,000, payable quarterly in arrears. During
the period GBP108,000 (31 July 2019 - GBP104,000) of fees
were payable, with a balance of GBP126,000 (31 July 2019
- GBP70,000) being due to ASFML at the period end.
13. Segmental information. The Company is engaged in a single
segment of business, which is to invest in equity securities
and debt instruments. All of the Company's activities are
interrelated, and each activity is dependent on the others.
Accordingly, all significant operating decisions are based
on the Company as one segment.
14. Subsequent events. Subsequent to the period end, the Company
purchased 24,960 of its own Ordinary shares for cancellation
at a cost of GBP57,000 leaving 143,252,560 Ordinary shares
in issue.
15. Half-Yearly Financial Report. The financial information
in this Report does not comprise statutory accounts within
the meaning of Section 434 - 436 of the Companies Act 2006.
The financial information for the year ended 31 January 2020
has been extracted from published accounts that have been
delivered to the Registrar of Companies and on which the
report of the Company's auditor was unqualified and contained
no statement under Section 498 (2), (3) or (4) of the Companies
Act 2006. The condensed interim financial statements have
been prepared using the same accounting policies as contained
within the preceding annual financial statements.
The financial information for the six months ended 31 July
2020 and 31 July 2019 have not been audited or reviewed by
the Company's auditor.
16. This Half-Yearly Financial Report was approved by the Board
on 17 September 2020.
17. The Half-Yearly Financial Report is available on the Company's website, www.northamericanincome.co.uk. The Half-Yearly Report will be posted to shareholders in October 2020 and copies will be available from the Company Secretary.
Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.
For The North American Income Trust plc
Aberdeen Asset Management PLC, Secretary
For further information, please contact:-
Company Secretary
Aberdeen Standard Investments
Tel: 0131 372 2200
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.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
IR BUGDCIGBDGGR
(END) Dow Jones Newswires
September 18, 2020 02:00 ET (06:00 GMT)
1 Year North American Income Chart |
1 Month North American Income Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
