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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Scottish American Investment Co. Plc | LSE:SCAM | London | Ordinary Share | GB0007873697 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 417.50 | 416.00 | 419.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMSCAM
RNS Number : 3708E
Scottish American Investment Co PLC
09 February 2018
RNS Announcement: Preliminary Results
Results for the year to 31 December 2017
Legal Entity Identifier code: 549300NF03XVC5IFB447
3/4 Dividend - the full year dividend, including a recommended final dividend of 2.825p, is 11.1p per share. This is 2.5% higher than the 2016 dividend, extending the Company's record of dividend increases to thirty eight consecutive years. The dividend is fully covered by earnings.
3/4 Total return - Net Asset Value total return (capital and income) for the year was 18.8%, some way ahead of the strong total return from global equities of 13.8%. The share price Total return was 17.2%. Returns were assisted by strong operational performance of many of the companies in which SAINTS invests, and also by the performance of the Company's property and bond investments.
3/4 Revenues - Investment income was GBP20.5m (2016 - GBP18.6m) and earnings per share were 11.33p (2016 - 10.46p).
3/4 Outlook - the likelihood of continued economic growth around the world seems strong, although the immediate prospects for both the UK economy and the market are less clear. The Board remains confident in the Company's ability to achieve its objective of delivering real dividend growth by increasing capital and growing income over the long term.
8 February 2018
SAINTS' objective is to deliver real dividend growth by increasing capital and growing income. Its policy is to invest mainly in equity markets, but other investments may be held from time to time including bonds, property and other asset classes.
The Company is managed by Baillie Gifford, the Edinburgh based fund management group with around GBP178 billion under management and advice as at 8 February 2018.
Past performance is not a guide to future performance. SAINTS is a listed UK company. As a result, the value of its shares and any income from those shares is not guaranteed and could go down as well as up. You may not get back the amount you invested. As SAINTS invests in overseas securities, changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up. You can find up to date performance information about SAINTS on the SAINTS page of the Managers' website www.saints-it.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
For further information please contact:
James Dow and Toby Ross, Managers, The Scottish American Investment Company P.L.C.
Tel: 0131 275 2141 and 0131 275 2217
James Budden, Baillie Gifford & Co
Tel: 0131 275 2816 or 07507 201208
Roland Cross, Director, Four Broadgate
Tel: 0203 697 4200 or 07831 401309
Chairman's Statement
The Company's objective is to deliver real dividend growth by increasing capital and growing income. An increased dividend of 11.1p (2016: 10.825p) will extend the Company's record of raising its dividend to thirty eight consecutive years.
Overview
Markets made further strong progress during the year, helped by continued and accelerating economic growth in both developed markets and elsewhere. 'Elsewhere' of course has been an important part of the mix, as emerging markets' share of the global economy continued to grow and many markets including China regained their momentum. This positive backdrop helped companies grow their earnings, and the happy combination of economic and earnings growth improved market sentiment.
There have of course been serious concerns in the background, notably geopolitical risk relating to Korea, itself linked to the unpredictability of US policy. Less dramatically, as in recent years two principal concerns have continued to bubble away in the background. The first is what happens when all this growth triggers further interest rate rises. The second is whether ten years of quantitative easing has stretched valuations to the point where a correction is likely to occur.
For investors based in the UK, the continued uncertainties around Brexit have also been prominent, although less so in the context of global markets. It is important to stress the international nature of SAINTS' equity portfolio, both in terms of listing but also economic focus. SAINTS' global approach provides the widest access to opportunities in equity markets and earlier sales of stocks with a domestic UK focus have been helpful.
The principal protection against the broader market concerns lies in the Manager's stock-driven approach which emphasises the importance of both income dependability and real growth. Dependability and quality of income should prove their worth if rising interest rates or an economic wild card cause problems for more indebted companies with less resilient cashflows. Growing cashflows on the other hand facilitate growing distributions, both from the companies which we own and to you in turn as shareholders of SAINTS.
The Company's investment in property has again made a significant contribution to both income and to overall returns. Within the property portfolio there has been carefully planned progress in reducing exposure to any falls in UK consumer spending.
Total Return Performance
Your Company's investments have performed well over the year. SAINTS' net asset value total return (capital and income) for the year was 18.8% and the share price total return was 17.2%. The total return from the global equity market was 13.8%. Whilst it is encouraging that returns have exceeded the very strong returns of equities generally over the year, both the Managers and your Board have a long-term perspective and so we do not believe that it is generally helpful to dwell on the comparison of performance against any equity index over short periods. As stressed last year, the Company's portfolio of investments differs markedly from the make up of the global equity index against which performance is often compared. This differentiated portfolio is necessary and appropriate in order for the Company to deliver a high and growing yield and service its borrowings.
Nonetheless it is worth observing that the equity portfolio has outperformed in a period when other approaches with a different balance between current income and future growth have struggled. As in previous years, returns have been helped by the sound operational performance of the companies in which the portfolio is invested. It is also notable that the Company's equity, property and bond investments all contributed to growth in both income and capital. The principal contributors to and detractors from performance and the changes to the equity, property and bond investments are explained in more detail in the Managers' Review.
Revenues
Earnings per share have increased by 8% to 11.33p and investment income has risen to GBP20.5m. Income has been helped by earnings and dividend progression from the Company's equity investments and also by increased revenues from both property and bonds where attractive new opportunities have been identified. In addition roughly half of the Company's earnings come from overseas and in 2017 currency movements boosted the sterling value of these earnings. Both managers (Baillie Gifford and, for the Company's property investments, OLIM) continue at the Board's request to emphasise supporting the dependability and the future growth of the Company's dividend in line with its objective.
Dividend and Inflation
A final dividend of 2.825p is recommended which will take the full year dividend to 11.1p per share, 2.5% higher than the 2016 dividend of 10.825p.
The recommended dividend is fully covered by this year's earnings. The Company has built up revenue reserves in the past and the Board has deemed it prudent to modestly augment those reserves this year, whilst also recommending a dividend which reinforces its progressive dividend policy. The ability to smooth dividend progression is a key advantage of investment trusts and, whilst the Board has great confidence in the long term prospects of the Company's investments, we also believe that a measured approach is appropriate, particularly given uncertainties around exchange rates and the path of the UK economy.
This year's increase, whilst slightly below the annual rate of inflation of 3% as measured by CPI, extends the Company's record of annual dividend increases to thirty eight years. Over the last ten year period the Company's dividends have increased at well over the rate of inflation, as shown on the first chart on page 1 of the Annual Report.
Borrowings
SAINTS' borrowings take the form of a single GBP80m debenture which is due for repayment in April 2022. During 2017, the borrowings mainly funded a range of higher yielding commercial property and, to a much lesser extent, some fixed income investments.
The book value of the debenture is GBP83.4m which, at the year end, was equivalent to approximately 17% of shareholders' funds. The estimated market or fair value of the debenture was GBP97.8m, a decrease from the previous year's value of GBP103.2m. The market value of the Company's borrowings will continue to fall over the coming years as the redemption date approaches.
Outlook
Last year I suggested that the longer-term implications of both Brexit and President Trump's victory would take a while to emerge and that inflation was likely to pick up in the UK during 2017. Not particularly heroic predictions but as it happens correct thus far. Whether inflation persists at its current level is less clear, due to a combination of some weakness in the domestic economy and action by the Bank of England on the one hand and a strengthening oil price on the other. The likelihood of continued economic growth around the world seems strong, although the outlook for the UK economy is less positive. In addition the concerns relating to valuations and rising interest rates mentioned earlier make share price progress less than certain, as has been demonstrated recently
The Board and the Managers remain alert to both potential opportunities and challenges. It is important that the Company's future income prospects depend principally on the cashflows of our equity investments and the strength of property covenants and length of leases, all of which are explained further in the Managers' report, rather than on the level of markets. As a Board, we remain of the view that an approach anchored in fundamental analysis of growth and dependability of income is a firm foundation for the future. Your Board is fully supportive of and confident in the Managers' approach, and this confidence has been strengthened by another year of encouraging operational performance. We continue to believe that that the portfolio as a whole is well placed to support the growth of the Company's dividend over time.
Issuance
The Company has raised over GBP9 million from new issuance at a premium to Net Asset value in order to satisfy investor demand over the year. This indicates that the merits of the Company's approach are increasingly appreciated. It also serves the interests of current shareholders by reducing costs per share and helping to further improve liquidity.
The Board and the Managers
There have been no changes to the Board over the year and as Chairman I have been extremely pleased with the manner in which those Board members who have joined more recently have bedded in, combining well with the valued contribution of longer standing members.
As announced in the summer Dominic Neary has moved on from Baillie Gifford, and the Board would like to reiterate our warm thanks and appreciation to him for his considerable contribution to SAINTS in recent years. The Board is however very pleased to have James Dow and Toby Ross as joint managers of the Company and confident in their ability to continue the investment approach which they helped to develop. The joint appointment reflects Baillie Gifford's team-based approach and the Board looks forward to a continued fruitful and productive working relationship with the Managers.
AGM
The AGM will be held at 11am on Thursday 5 April 2018 at Baillie Gifford's offices at Calton Square, 1 Greenside Row, Edinburgh. The Managers will make a presentation on the investment portfolio and there will also be an opportunity to ask questions. The Directors and the Managers look forward to meeting you there.
Peter Moon
Chairman
8 February 2018
For a definition of terms see Glossary of Terms, note 10.
Past performance is not a guide to future performance.
Income Statement
The following is the unaudited preliminary statement for the year to 31 December 2017 which was approved by the Board on 8 February 2018. The Board of The Scottish American Investment Company P.L.C. is recommending to the Annual General Meeting of the Company to be held on 5 April 2018 the payment of a final dividend of 2.825p (2.725p last year) per ordinary share making a total of 11.10p (10.825p last year) paid and proposed for the year ended 31 December 2017.
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For the year ended For the year ended
31 December 2017 31 December 2016
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
================================================== ======== ======== ======== ======== ======== ========
Net gains on investments - securities - 56,191 56,191 - 87,566 87,566
Net gains on investments - property - 4,845 4,845 - 1,265 1,265
Currency gains/(losses) - 558 558 - (1,084) (1,084)
Income (note 2) 20,484 - 20,484 18,630 - 18,630
Management fees (893) (1,659) (2,552) (775) (1,440) (2,215)
Other administrative expenses (1,086) - (1,086) (968) - (968)
================================================== ======== ======== ======== ======== ======== ========
Net return before finance costs and taxation 18,505 59,935 78,440 16,887 86,307 103,194
Finance costs of borrowings (2,001) (3,715) (5,716) (2,015) (3,741) (5,756)
================================================== ======== ======== ======== ======== ======== ========
Net return on ordinary activities before taxation 16,504 56,220 72,724 14,872 82,566 97,438
Tax on ordinary activities (1,291) 515 (776) (933) 293 (640)
================================================== ======== ======== ======== ======== ======== ========
Net return on ordinary activities after taxation 15,213 56,735 71,948 13,939 82,859 96,798
================================================== ======== ======== ======== ======== ======== ========
Net return per ordinary share (note 3) 11.33p 42.24p 53.57p 10.46p 62.16p 72.62p
================================================== ======== ======== ======== ======== ======== ========
The total column of the Income Statement is the profit and loss account of the Company. The supplementary revenue and capital columns are prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in this statement derive from continuing operations.
A Statement of Comprehensive Income is not required as there is no other comprehensive income.
Balance Sheet
At 31 December 2017 At 31 December 2016
GBP'000 GBP'000 GBP'000 GBP'000
=============================================================
Fixed assets
Investments - securities 495,645 452,554
Investments - property 84,950 61,000
============================================================= ======== =========== ======== ===========
580,595 513,554
============================================================= ======== =========== ======== ===========
Current assets
Debtors 1,222 1,116
Cash and cash equivalents 2,894 4,174
============================================================= ======== =========== ======== ===========
4,116 5,290
============================================================= ======== =========== ======== ===========
Creditors
Amounts falling due within one year (3,345) (3,222)
============================================================= ======== =========== ======== ===========
Net current assets 771 2,068
============================================================= ======== =========== ======== ===========
Total assets less current liabilities 581,366 515,622
============================================================= ======== =========== ======== ===========
Creditors
Amounts falling due after more than one year (83,428) (84,112)
======== =========== ======== ===========
Net assets 497,938 431,510
============================================================= ======== =========== ======== ===========
Capital and reserves
Share capital 33,994 33,349
Share premium account 10,744 2,131
Capital redemption reserve 22,781 22,781
Capital reserve 413,632 356,897
Revenue reserve 16,787 16,352
============================================================= ======== =========== ======== ===========
Shareholders' funds 497,938 431,510
============================================================= ======== =========== ======== ===========
Net asset value per ordinary share (debenture at fair value) 355.6p 309.2p
============================================================= ======== =========== ======== =========== Net asset value per ordinary share (debenture at book value) 366.2p 323.5p ============================================================= ======== =========== ======== =========== Ordinary shares in issue (note 6) 135,975,943 133,395,943 ============================================================= ======== =========== ======== ===========
Statement of Changes in Equity
For the year ended 31 December 2017
Share Share Capital redemption Shareholders'
capital premium account reserve Capital reserve* Revenue reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=================== ======== ================= ================== ================ =============== =============
Shareholders' funds
at 1 January 2017 33,349 2,131 22,781 356,897 16,352 431,510
Shares issued 645 8,613 - - - 9,258
Net return on
ordinary
activities after
taxation - - - 56,735 15,213 71,948
Dividends paid in
the year (note 4) - - - - (14,778) (14,778)
Shareholders' funds
at 31 December
2017 33,994 10,744 22,781 413,632 16,787 497,938
=================== ======== ================= ================== ================ =============== =============
For the year ended 31 December 2016
Share Share Capital redemption Shareholders'
capital premium account reserve Capital reserve* Revenue reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=================== ======== ================= ================== ================ =============== =============
Shareholders' funds
at 1 January 2016 33,290 1,534 22,781 274,038 16,810 348,453
Shares issued 59 597 - - - 656
Net return on
ordinary
activities after
taxation - - - 82,859 13,939 96,798
Dividends paid in
the year (note 4) - - - - (14,397) (14,397)
------------------- -------- ----------------- ------------------ ---------------- --------------- -------------
Shareholders' funds
at 31 December
2016 33,349 2,131 22,781 356,897 16,352 431,510
=================== ======== ================= ================== ================ =============== =============
* The capital reserve balance as at 31 December 2017 includes investment holding gains of GBP147,461,000 (31 December 2016 - GBP128,030,000).
Cash Flow Statement
Year Ended Year Ended
31 December 2017 31 December 2016
GBP'000 GBP'000 GBP'000 GBP'000
==================================================== ========== ======= ========= ========
Cash flows from operating activities
Net return on ordinary activities before taxation 72,724 97,438
Net gains on investments - securities (56,191) (87,566)
Net gains on investments - property (4,845) (1,265)
Currency (gains)/losses (558) 1,084
Finance costs of borrowings 5,716 5,756
Overseas withholding tax (810) (625)
Changes in debtors and creditors 51 233
Other non-cash changes (25) (65)
==================================================== ========== ======= ========= ========
Cash from operations 16,062 14,990
Interest paid (6,400) (6,400)
==================================================== ========== ======= ========= ========
Net cash inflow from operating activities 9,662 8,590
==================================================== ========== ======= ========= ========
Cash flows from investing activities
Acquisitions of investments (129,531) (83,824)
Disposals of investments 123,551 91,034
Forward currency contracts 469 (1,691)
==================================================== ========== ======= ========= ========
Net cash (outflow)/inflow from investing activities (5,511) 5,519
==================================================== ========== ======= ========= ========
Cash flows from financing activities
Equity dividends paid (14,778) (14,397)
Shares issued 9,258 656
==================================================== ========== ======= ========= ========
Net cash outflow from financing activities (5,520) (13,741)
==================================================== ========== ======= ========= ========
(Decrease)/increase in cash and cash equivalents (1,369) 368
Exchange movements 89 407
Cash and cash equivalents at 1 January 4,174 3,399
==================================================== ========== ======= ========= ========
Cash and cash equivalents at 31 December* 2,894 4,174
==================================================== ========== ======= ========= ========
* Cash and cash equivalents represent cash at bank and short term money market deposits repayable on demand.
Asset Allocation
At 31 At 31
December December
2016
2017 %
%
=================== ========== === ==========
Quoted equities 79.6 82.8
Bonds 5.7 5.0
Direct property 14.6 11.8
Net liquid assets 0.1 0.4
=================== ========== === ==========
Total assets 100.0 100.0
=================== ========== === ==========
Performance Attribution
Average allocation Total return
==============================
SAINTS Benchmark SAINTS Benchmark
Portfolio Breakdown % % % %
============================== ======== =========== ======= ==========
Global equities 93.2 100.0 15.5 13.8
Bonds 6.8 30.1
Direct property 16.3 13.7
Deposits 1.6 -
Debenture at book value (17.8) 6.8
======= ==========
Portfolio total return
(debenture at book value) 17.6 13.8
Other items* (0.8)
======= ==========
Fund total return (debenture
at book value) 16.8 13.8
Adjustment for change
in fair value of debenture 2.0
============================== ======== =========== ======= ==========
Fund total return (debenture
at fair value) 18.8 13.8
============================== ======== =========== ======= ==========
* Includes Baillie Gifford and OLIM management fees.
The above returns are calculated on a total return basis with net income reinvested.
Past performance is not a guide to future performance.
Source: Baillie Gifford
List of Investments at 31 December 2017
=======================================
Value % of
Name Business GBP'000 total assets
=================================== ============================================== ====== ======== =============
Coca Cola Beverage manufacturer 11,968 2.1
Johnson and Johnson Pharmaceuticals and healthcare products 11,946 2.1
Prudential Life insurer 10,874 1.9
CH Robinson Delivery and logistics 10,850 1.9
Deutsche Boerse Securities exchange owner/operator 10,563 1.8
Procter & Gamble Household product manufacturer 10,511 1.8
Partners Group Asset management 10,319 1.8
Fastenal Distribution and sales of industrial supplies 9,942 1.7
Sonic Healthcare Laboratory testing 9,475 1.6
Anta Sports Products Sportswear manufacturer and retailer 9,378 1.6
Hiscox Property and casualty insurance 9,239 1.6
AVI Staple foods manufacturer 8,995 1.5
Admiral Car insurance 8,625 1.5
Analog Devices Integrated circuits 8,620 1.5
Cochlear Hearing aids 8,357 1.4
Pepsico Snack and beverage manufacturer 8,354 1.4
Microsoft Computer software 8,289 1.4
McDonald's Fast food restaurants 8,222 1.4
Edenred Voucher programme outsourcer 8,150 1.4
Total Integrated oil company 8,101 1.4
Taiwan Semiconductor Manufacturing Semiconductor manufacturer 8,014 1.4
United Parcel Service Courier services 7,868 1.4
Experian Credit scoring and marketing services 7,614 1.3
Scottish & Southern Energy Electricity utility 7,603 1.3
WPP Advertising agency 7,547 1.3
Kering Luxury brand conglomerate 7,441 1.3
Rio Tinto Mining 7,321 1.3
British American Tobacco Cigarette manufacturer 7,299 1.3
Atlas Copco Engineering 7,241 1.2
China Mobile Mobile telecommunication services 7,075 1.2
Nestlé Food producer 6,940 1.2
National Instruments Electronic test and measurement systems 6,885 1.2
Dia Discount supermarkets 6,844 1.2
Apple Computer technology 6,547 1.1
Kimberly-Clark de México Paper-based household products 6,403 1.1
Bankinter Corporate and retail bank 6,211 1.1
Pandora Manufactures handmade jewellery 6,075 1.0
Alphabet Class A Online search engine 5,984 1.0
United Overseas Bank Commercial banking 5,980 1.0
Dolby Laboratories Multimedia software 5,696 1.0
Sumitomo Mitsui Trust Holdings Trust bank and investment manager 5,692 1.0
Brambles Pallet pool operator 5,685 1.0
Continental Tyres and automotive parts manufacturer 5,635 1.0
Sandvik Engineering 5,632 1.0
Want Want Snacks and milk-based products 5,548 1.0
SAP Business software developer 5,496 0.9
Novo Nordisk Pharmaceutical company 5,487 0.9
Wolters Kluwer Information services and solutions provider 5,466 0.9
Svenska Handelsbanken Banking 5,435 0.9
B3 S.A. Securities exchange owner/operator 5,313 0.9
Hong Kong Exchanges and Clearing Securities exchange owner/operator 5,299 0.9
MTN Group South African wireless telecom company 5,286 0.9
Albemarle Producer of speciality and fine chemicals 5,244 0.9
Man Wah Sofa designer and manufacturer 5,182 0.9
Ambev Brewing 5,157 0.9
Pearson Educational publisher 5,065 0.9
Roche Holdings Pharmaceuticals 4,806 0.8
Zenkoku Hosho Speciality finance 4,782 0.8
Challenger Investment management company 4,677 0.8
Greencoat UK Wind UK wind farms 4,548 0.8
Aberforth Split Level Income Trust UK small-cap equities fund 4,434 0.8
Arthur J Gallagher Insurance broker 4,428 0.8
Apache Oil exploration and production 4,157 0.7
Philips Lighting Light manufacturing company 4,041 0.7
Doric Nimrod Air Two Aircraft leasing 3,801 0.6
Li & Fung Supply chain management services company 3,237 0.6
WPP Aunz Advertising agency 2,562 0.4
Cambium Global Timberland Forestry investment fund 1,146 0.2
Terra Catalyst Fund Fund of European property funds 265 -
D Carnegie Swedish housing developer 1 -
==============================================
Total Equities 462,873 79.6
=================================================================================== ====== ======== =============
Direct Property
Direct Property See table below 84,950 14.6
Bonds
Euro denominated Aryzta Finance 4.5% 2019 Perpetual 4,731 0.8
US dollar denominated Alibaba Convertible 5.75% 2019 6,963
Athena Debt Opportunities Fund 12,130 19,093 3.3
======
Argentinian peso denominated Argentina 15.5% 17/10/2026 1,556 0.3
Brazilian real denominated Brazil CPI Linked 15/05/2045 7,392 1.3
=================================== ============================================== ====== ======== =============
Total Bonds 32,772 5.7
=================================================================================== ====== ======== =============
Total Investments 580,595 99.9
Net Liquid Assets 771 0.1
=================================================================================== ====== ======== =============
Total Assets
(before deduction of debenture) 581,366 100.0
=================================================================================== ====== ======== =============
Property Portfolio
==================
2017
2017 % 2016
Location Type Tenant Value GBP'000 of total assets Value GBP'000
================== ================== ================== =============== ================= ==============
G4S Cash Solutions
Basingstoke Warehouse (UK) Ltd 3,450 0.6 3,300
Beccles Restaurant Prezzo Limited - - 1,300
Quest Automotive
Products UK
Biggleswade Warehouse Limited 4,800 0.8 4,400
Bishop's Stortford Restaurant Prezzo Limited 1,250 0.2 1,500
Blandford Forum Restaurant Prezzo Limited - - 1,100
Stonegate Pub
Cleethorpes Public House Company Limited 900 0.2 750
Petrol Station and Co-operative Food
Crawley Convenience Store Stores Limited 3,750 0.6 3,600
Aldi Stores
Limited
Peacocks Stores
Limited
Poundland Retail
Denbigh* Supermarket Limited 5,900 1.0 -
JD Weatherspoon
Dundee Public House Plc 1,300 0.2 1,250
Spirit Pub Company
Earley Public House (Managed) Limited 3,250 0.6 3,000
Brake Brothers
Inverness Warehouse Limited - - 2,750
Care UK Community
Partnerships
Kenilworth Nursing Home Limited 7,200 1.2 6,800
Sytner Properties
Leicester Car Showroom Limited - - 3,450
Stonegate Pub
Luton Public House Company Limited 3,150 0.5 2,500
TalkTalk
Communications
Milton Keynes* Data Centre Limited 16,000 2.8 -
New Romney Holiday Village Park Resorts Ltd 11,500 2.0 10,000
Newport Pagnell Car Showroom Pendragon Plc 4,000 0.7 4,150
Spirit Pub Company
Otford Public House (Managed) Limited 2,250 0.4 2,100
Co-operative Food
Pagham* Convenience Store Stores Limited 1,300 0.2 -
JD Weatherspoon
Portsmouth Public House Plc 2,600 0.5 2,500
Stonegate Pub
Prestatyn Public House Company Limited 1,600 0.3 1,450
Weston Body
Redditch Warehouse Hardware Ltd - - 1,500
Stonegate Pub
Sale Public House Company Limited 750 0.1 650
Giant Booker
Southend-on-Sea* Warehouse Limited 8,600 1.5 -
Mitchells &
Butlers Retail
Torquay Public House Limited 1,400 0.2 1,350
Fuller Smith &
Winchester Public House Turner Plc - - 1,600
================== ================== ================== =============== ================= ==============
84,950 14.6 61,000
======================================================== =============== ================= ==============
* Property purchased during the year.
Property sold during the year.
Notes
1. The Financial Statements for the year to 31 December 2017 have been prepared in accordance
with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the
UK and Republic of Ireland and on the basis of the accounting policies set out in the Annual
Report and Financial Statements for the year ending 31 December 2017.
2. Income 2017 2016
GBP'000 GBP'000
================================================================================ ======== =========
Income from investments
UK dividends 3,243 3,176
UK interest - 157
Overseas dividends 10,648 10,316
Overseas interest 1,426 873
==================================================================================== ======== =========
15,317 14,522
==================================================================================== ======== =========
Other income
Deposit interest 10 64
Rental income 5,120 4,021
Other income 37 23
==================================================================================== ======== =========
5,167 4,108
==================================================================================== ======== =========
Total income 20,484 18,630
------------------------------------------------------------------------------------ -------- ---------
Total income comprises
Dividends from financial assets designated at fair value through profit or loss 13,891 13,492
Interest from financial assets designated at fair value through profit or loss 1,426 1,030
Interest from financial assets not at fair value through profit or loss 10 64
Other income not from financial assets 5,157 4,044
==================================================================================== ======== =========
20,484 18,630
==================================================================================== ======== =========
Notes
3. Net return per ordinary share 2017 2016
Revenue Capital Total Revenue Capital Total
======================================== ============= ============= ========= ========= ======== =========
Net return per ordinary share 11.33p 42.24p 53.57p 10.46p 62.16p 72.62p
Revenue return per ordinary share is based on the net revenue on ordinary activities after
taxation of GBP15,213,000 (2016 - GBP13,939,000) and on 134,296,614 (2016 - 133,291,026) ordinary
shares of 25p, being the weighted average number of ordinary shares in issue during the year.
Capital return per ordinary share is based on the net capital gain for the financial year
of GBP56,735,000 (2016 - net capital gain of GBP82,859,000), and on 134,296,614 (2016 - 133,291,026)
ordinary shares, being the weighted average number of ordinary shares in issue during the
year.
There are no dilutive or potentially dilutive shares in issue.
4. Ordinary Dividends 2017 2016
2017 2016 GBP'000 GBP'000
====================================================================== ========= ========= ======== =========
Amounts recognised as distributions in the year:
Previous year's final (paid 12 April 2017) 2.725p 2.70p 3,635 3,595
First interim (paid 23 June 2017) 2.725p 2.70p 3,644 3,598
Second interim (paid 22 September 2017) 2.75p 2.70p 3,694 3,602
Third interim (paid 18 December 2017) 2.80p 2.70p 3.805 3,602
11.00p 10.80p 14,778 14,397
=========================================================================== ========= ========= ======== =========
We also set out below the total dividends paid and proposed in respect of the financial year,
which is the basis on which the requirements of section 1159 of the Corporation Tax Act 2010
are considered. The revenue available for distribution out of current year profits by way
of dividend for the year is GBP15,213,000 (2016 - GBP13,939,000).
=================================================================================================================
2017 2016
2017 2016 GBP'000 GBP'000
====================================================================== ========= ========= ======== =========
Dividends paid and payable in respect of the year:
First interim (paid 23 June 2017) 2.725p 2.70p 3,644 3,598
Second interim (paid 22 September 2017) 2.75p 2.70p 3,694 3,602
Third interim (paid 18 December 2017) 2.80p 2.70p 3,805 3,602
Current year's proposed final dividend (payable 12 April 2018) 2.825p 2.725p 3,841 3,635
11.10p 10.825p 14,984 14,437
=========================================================================== ========= ========= ======== =========
If approved the final dividend of 2.825p will be paid on 12 April 2018 to all shareholders
on the register at the close of business on 9 March 2018. The ex-dividend date is 8 March
2018. The Company's Registrar offers a Dividend Reinvestment Plan and the final date for the
receipt of elections for reinvestment of this dividend is 20 March 2018.
5. The fair value of the 8% Debenture Stock 2022 at 31 December 2017 was GBP97.8m (2016 - GBP103.2m).
6. During the year, 2,580,000 (2016 - 235,000) shares were issued at a premium to net asset value
raising proceeds of GBP9,258,000 (2016 - GBP656,000). At 31 December 2017 the Company had
authority to buy back 19,996,051 ordinary shares and to allot 10,759,592 ordinary shares without
application of pre-emption rights in accordance with the authorities granted at the AGM in
April 2017. No shares were bought back during the year.
7. Transaction costs incurred on the purchase and sale of investments are added to the purchase
cost or deducted from the sale proceeds, as appropriate. During the year, transaction costs
on purchases amounted to GBP2,027,000 (2016 -GBP390,000) and transaction costs on sales amounted
to GBP254,000 (2016 - GBP47,000).
8. The financial information set out above does not constitute the Company's statutory accounts
for the years ended 31 December 2017 or 2016. The financial information for 2016 is derived
from the statutory accounts for 2016 which have been delivered to the Registrar of Companies.
The auditor has reported on the 2016 accounts; the report was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way of emphasis
without qualifying the report and (iii) did not contain a statement under sections 498 (2)
or 498(3) of the Companies Act 2006. The statutory accounts for 2017 will be finalised on
the basis of the financial information presented in this preliminary announcement and will
be delivered to the Registrar of Companies following the Company's Annual General Meeting.
9. The Report and Accounts will be available on the SAINTS page of the Managers' website www.saints-it.com(++)
on or around 1 March 2018
10. Glossary of Terms
Total Assets
Total assets less current liabilities, before deduction of all borrowings.
Net Asset Value
Net Asset Value (NAV) is the value of total assets less liabilities (including borrowings).
The NAV per share is calculated by dividing this amount by the number of ordinary shares in
issue.
Net Asset Value (Debentures at Fair Value)
Borrowings are valued at an estimate of their market worth.
Net Asset Value (Debentures at Par Value)
Borrowings are valued at adjusted net issue proceeds.
31 December 31 December
2017 2016
================================ ============ =============
Shareholders' funds (debenture GBP497,938 GBP431,510
at book value)
Add: book value of debenture GBP83,428 GBP84,112
Less: fair value of debenture (GBP97,832) (GBP103,200)
Shareholders' funds (debenture GBP483,534 GBP412,422
at fair value)
Shares in issue at year
end 135,975,943 133,395,943
Net Asset Value per ordinary
share (debenture at fair
value) 355.6p 309.2p
================================ ============ =============
Discount/Premium
As stockmarkets and share prices vary, an investment trust's share price is rarely the same
as its NAV. When the share price is lower than the NAV per share it is said to be trading
at a discount. The size of the discount is calculated by subtracting the share price from
the NAV per share and is usually expressed as a percentage of the NAV per share. If the share
price is higher than the NAV per share, this situation is called a premium.
Total Return
The total return is the return to shareholders after reinvesting the net dividend on the date
that the share price goes ex-dividend.
Ongoing Charges
The total expenses (excluding borrowing costs) incurred by the Company as a percentage of
the average net asset value (with debt at fair value). The ongoing charges have been calculated
on the basis prescribed by the Association of Investment Companies. The percentage is lower
than the ongoing charges stated in the Company's Key Information Document which has been calculated
as prescribed by relevant regulation and are required to include the cost of borrowings.
Gearing
At its simplest, gearing is borrowing. Just like any other public company, an investment trust
can borrow money to invest in additional investments for its portfolio. The effect of the
borrowing on the shareholders' assets is called 'gearing'. If the Company's assets grow, the
shareholders' assets grow proportionately more because the debt remains the same. But if the
value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance
performance in rising markets but can adversely impact performance in falling markets.
Gearing represents borrowings at book less cash and cash equivalents expressed as a percentage
of shareholders' funds.
Potential gearing is the Company's borrowings expressed as a percentage of shareholders' funds.
Equity gearing is the Company's borrowings adjusted for cash, bonds and property expressed
as a percentage of shareholders' funds.
Leverage
For the purposes of the Alternative Investment Fund Managers (AIFM) Directive, leverage is
any method which increases the Company's exposure, including the borrowing of cash and the
use of derivatives. It is expressed as ratio between the Company's exposure and its net asset
value and can be calculated on a gross and a commitment method. Under the gross method, exposure represents the sum of the Company's positions after the deduction of sterling cash balances, without taking into account any hedging and netting arrangements. Under the commitment method, exposure is calculated without the deduction of sterling cash balances and after certain hedging and netting positions are offset against each other. Active Share Active share, a measure of how actively a portfolio is managed, is the percentage of the listed equity portfolio that differs from its comparative index. It is calculated by deducting from 100 the percentage of the portfolio that overlaps with the comparative index. An active share of 100 indicates no overlap with the index and an active share of zero indicates a portfolio that tracks the index. ======================================================================================================================
Third Party Data Provider Disclaimer
No third party data provider ('Provider') makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. No Provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the index data included in this document, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom.
No Provider has any obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate.
Without limiting the foregoing, no Provider shall have any liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgments, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein.
FTSE Index Data
FTSE International Limited ('FTSE') (c) FTSE 2017. 'FTSE(R)' is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and/or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE's express written consent. FTSE does not promote, sponsor or endorse the content of this communication.
Automatic Exchange of Information
In order to fulfil its legal obligations under UK tax legislation relating to the automatic
exchange of information, The Scottish American Investment Company P.L.C. is required to collect
and report certain information about certain shareholders.
The legislation requires investment trust companies to provide personal information to HMRC
on certain investors who purchase shares in investment trusts. Accordingly, The Scottish American
Investment Company P.L.C. will have to provide information annually to the local tax authority
on the tax residencies of a number of non-UK based certificated shareholders and corporate
entities.
All new shareholders, excluding those whose shares are held in CREST, who come on to the share
register with effect from 1 January 2016 will be sent a certification form for the purposes
of collecting this information.
For further information, please see HMRC's Quick Guide: Automatic Exchange of Information - information for account holders https://www.gov.uk/government/publications/exchange-of-information-account-holders
Regulated Information Classification: Additional regulated information required to be disclosed under the laws of a Member State of the European Union.
++ Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.
None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
- ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UWUNRWKAURAR
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