REG - Aberdeen New Dawn IT - Annual Financial Report <Origin Href="QuoteRef">ABD.L</Origin> - Part 5
20/06/2017 07:05
- Part 5: For the preceding part double click ID:nRST5229Id
stock exchanges worldwide.
Price risk sensitivity
If market prices at the Statement of Financial
Position date had been 10% higher or lower
while all other variables remained constant,
the return attributable to Ordinary
shareholders for the year ended 30 April 2017
would have increased/(decreased) by
£31,353,000 (2016 - increased/(decreased) by
£23,991,000) and equity reserves would have
increased/(decreased) by the same amount.
(ii) Liquidity risk
This is the risk that the Company will
encounter difficulty in meeting obligations
associated with financial liabilities.
Management of the risk
The Board imposes borrowing limits to ensure
gearing levels are appropriate to market
conditions and reviews these on a regular
basis. Borrowings comprise a revolving multi
-currency credit facility, which expires on 7
October 2019. The Board has imposed a maximum
gearing level, measured on the most stringent
basis of calculation after netting off cash
equivalents, of 25%. Details of borrowings at
30 April 2017 are shown in note 12.
Liquidity risk is not considered to be
significant as the Company's assets comprise
mainly readily realisable securities, which
can be sold to meet funding commitments if
necessary. Short-term flexibility is achieved
through the use of the loan facility, details
of which can be found in note 11. Under the
terms of the loan facility, the Manager
provides the lender with loan covenant reports
on a monthly basis, to provide the lender with
assurance that the terms of the facility are
not being breached. The Manager will also
review the credit rating of a lender on a
regular basis. Details of the Board's policy
on gearing are shown in the interest rate risk
section of this note.
Liquidity risk exposure
At 30 April 2017 and 30 April 2016 the
Company's floating rate bank loans, amounting
to £24,524,000 and £21,986,000 respectively,
were due for repayment or roll-over within one
month of the year end.
(iii) Credit risk
This is the risk of failure of the
counterparty to a transaction to discharge its
obligations under that transaction that could
result in the Company suffering a loss.
Management of the risk
Investment transactions are carried out with a
large number of brokers, whose credit-standing
is reviewed periodically by the Manager, and
limits are set on the amount that may be due
from any one broker. Cash is held only with
reputable banks with high quality external
credit enhancements.
Credit risk exposure
In summary, compared to the amounts in the
Statement of Financial Position, the maximum
exposure to credit risk at 30 April was as
follows:
2017 2016
Statement of Statement of
Financial Maximum Financial Maximum
Position exposure Position exposure
£'000 £'000 £'000 £'000
Fixed assets
Investments at fair value through profit or 313,530 313,530 239,909 239,909
loss
Current assets
Loans and receivables 1,052 1,052 1,319 1,319
Cash at bank and in hand 1,719 1,719 2,369 2,369
_______ _______ _______ _______
316,301 316,301 243,597 243,597
_______ _______ _______ _______
None of the Company's financial assets is past
due or impaired.
Fair values of financial assets and financial
liabilities
For the floating rate HK$ loan, the fair value
of borrowings has been calculated at
£15,311,000 as at 30 April 2017 (2016 -
£13,561,000) compared to an accounts value in
the financial statements of £15,315,000 (2016
- £13,561,000) (note 12). For the floating
rate US$ loan, the fair value of borrowings
has been calculated at £6,710,000 as at 30
April 2017 (2016 - £5,926,000) compared to an
accounts value in the financial statements of
£6,709,000 (2016- £5,925,000) (note 12). For
the floating rate GBP loan, the fair value of
borrowings has been calculated at £2,500,000
as at 30 April 2017 (2016 - £2,500,000)
compared to an accounts value in the financial
statements of £2,500,000 (2016 - £2,500,000)
(note 12). For the fixed rate GBP loan, the
fair value of borrowings has been calculated
at £5,163,000 as at 30 April 2017 (2016 -
£5,167,000) compared to an accounts value in
the financial statements £5,000,000 (2016 -
£5,000,000) (note 12). The fair value of each
loan is determined by aggregating the expected
future cash flows for that loan discounted at
a rate comprising the borrower's margin plus
an average of market rates applicable to loans
of a similar period of time and currency. All
other assets and liabilities of the Company
are included in the Statement of Financial
Position at fair value.
17. 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 has 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 undirectly.
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 Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:
Level 1 Level 2 Level 3 Total
As at 30 April 2017 £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 263,011 - - 263,011
Collective investment schemes - 50,519 - 50,519
Total fair value 263,011 50,519 - 313,530
Level 1 Level 2 Level 3 Total
As at 30 April 2016 £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 215,235 - - 215,235
Collective investment schemes - 24,674 - 24,674
Total fair value 215,235 24,674 - 239,909
Quoted Equities
The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges.
Collective Investment Schemes
The fair value of the Company's investments in collective investment schemes has been determined by reference to their quoted net asset values at the reporting date and hence are categorised in Fair Value Level 2.
18. Related party transactions and transactions with the Manager
Fees payable during the period to the Directors and their interests in shares of the Company will be disclosed within the Directors' Remuneration Report.
Mr H Young is a director of Aberdeen Asset Management PLC, of which Aberdeen Fund Managers Limited ("AFML") is a subsidiary. Management, promotional activities and secretarial and administration services are provided to the Company by AFML. Details of transactions during the year and balances outstanding at the year end disclosed in notes 4 and 5.
Additional Notes to the Annual Financial Report
The Annual General Meeting will be held at 12 noon on 30 August 2017 at Bow Bells House, 1 Bread Street, London EC4M 9HH.
If approved at the Annual General Meeting, the final dividend of 3.0p per share will be paid on 1 September 2017 to holders
of Ordinary shares on the register at the close of business on 4 August 2017. The relevant ex-dividend date is 3 August
2017.
The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 30
April 2017 have been agreed with the auditor and are an abridged version of the Company's full accounts, which have been
approved and audited with an unqualified report. The 2016 and 2017 statutory accounts received unqualified reports from the
Company's auditor and did not include any reference to matters to which the auditor drew attention by way of emphasis
without qualifying the reports, and did not contain a statement under s.498(2) or 498(3) of the Companies Act 2006. The
financial information for 2016 is derived from the statutory accounts for 2016 which have been delivered to the Registrar
of Companies. The 2017 accounts will be filed with the Registrar of Companies in due course.
The Annual Report and Accounts will be posted to shareholders in July 2017. Copies will be available during normal business
hours from the Secretary, Aberdeen Asset Management PLC, 40 Princes Street, Edinburgh EH2 2BY or from the Company's
website, www.newdawn-trust.co.uk*.
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.
By order of the Board
Aberdeen Asset Management PLC
Company Secretary
19 June 2017
* Neither the Company's website nor the content of any website accessible from hyperlinks on it (or any other website) is
(or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.
This information is provided by RNS
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