REG - Edinburgh Dragon Tst - Annual Financial Report <Origin Href="QuoteRef">ABF.L</Origin> <Origin Href="QuoteRef">EDDR.L</Origin> - Part 2
04/11/2014 08:05
- Part 2: For the preceding part double click ID:nRSD0278Wa
621,938 94.4
DFCC Bank Banks Sri Lanka 4,808 0.7 3,335
Unilever Indonesia Household Products Indonesia 4,510 0.7 6,446
DGB Financial Group Banks South Korea 4,465 0.7 5,071
BS Financial Group Banks South Korea 4,195 0.6 4,944
ITC Tobacco India 3,528 0.5 -
Shinsegae Company Multiline Retail South Korea 1,914 0.3 1,615
Global Brands Group Textiles, Apparel & Luxury Goods Hong Kong 1,314 0.2 -
Total investments 646,672 98.1
Net current assets 14,019 1.9
Total assets{C} 660,691 100.0
{A} Valuation amalgamates both UK (£16,833,000; 2013 - £18,773,000) and Hong Kong (£4,655,000; 2013 - £1,158,000) listed equity holdings.
{B} Valuation amalgamates both warrants (£385,000; 2013 - £181,000) and listed equity holdings (£14,423,000; 2013 - £14,784,000).
{C} See definition on page 57 of the 2014 Annual Report and Accounts¹.
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and Accounts and
the financial statements, in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with UK Accounting Standards.
The financial statements are required by law to give a true and fair view of
the state of affairs of the Company and of the profit or loss of the Company
for that period. In preparing these financial statements, the Directors are
required to:
- select suitable accounting policies and then apply them
consistently;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed,
subject to any material departures disclosed and explained in the financial
statements; and
- prepare the financial statements on the going concern basis unless
it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that its financial statements comply with
the Companies Act 2006. They have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of the Company and to
prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report, Directors' Remuneration Report and Statement of
Corporate Governance that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The Directors confirm that to the best of our knowledge:
- the financial statements, prepared in accordance with the applicable
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
- the Annual Report and Accounts taken as a whole, is fair, balanced
and understandable and it provides the information necessary to assess the
Company's performance, business model and strategy; and
- the Strategic Report and Directors' Report include a fair review of
the development and performance of the business and the position of the
Company, together with a description of the principal risks and uncertainties
that the Company faces.
For Edinburgh Dragon Trust plc
Allan McKenzie
Chairman
3 November 2014
GOING CONCERN
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 Directors believe that it is appropriate to continue to adopt the going
concern basis in the preparation of the accounts, and they consider that the
Company has adequate resources to continue in operational existence for the
foreseeable future.
Shareholders are given the opportunity to vote on the continuation of the
Company every three years. The last continuation vote was in December 2012
when shareholders voted in favour of continuation.
FINANCIAL STATEMENTS
INCOME STATEMENT
Year ended 31 August 2014 Year ended 31 August 2013
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value through profit or loss 9 - 50,341 50,341 - 28,264 28,264
Currency losses - (43) (43) - (111) (111)
Income 2 17,010 - 17,010 16,546 - 16,546
Investment management fee 3 (5,597) - (5,597) (5,889) - (5,889)
Administrative expenses 4 (1,203) - (1,203) (1,273) - (1,273)
_______ _______ _______ _______ _______ _______
Net return before finance costs and taxation 10,210 50,298 60,508 9,384 28,153 37,537
Interest payable and similar charges 5 (2,741) - (2,741) (2,742) - (2,742)
_______ _______ _______ _______ _______ _______
Return on ordinary activities before taxation 7,469 50,298 57,767 6,642 28,153 34,795
Taxation on ordinary activities 6 (732) (6) (738) 83 (2) 81
_______ _______ _______ _______ _______ _______
Return on ordinary activities after taxation 6,737 50,292 57,029 6,725 28,151 34,876
_______ _______ _______ _______ _______ _______
Return per share (pence) 8
Basic 3.43 25.61 29.04 3.42 14.34 17.76
_______ _______ _______ _______ _______ _______
Diluted n/a 23.32 27.59 n/a 13.05 17.29
_______ _______ _______ _______ _______ _______
The total column of this statement represents the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.
BALANCE SHEET (audited)
As at As at
31 August 2014 31 August 2013
Notes £'000 £'000
Non-current assets
Investments at fair value through profit or loss 9 646,672 603,405
____________ ____________
Current assets
Debtors and prepayments 10 2,850 2,438
Money market funds 7,000 -
Cash and short term deposits 6,209 4,224
____________ ____________
16,059 6,662
____________ ____________
Creditors: amounts falling due within one year
Other creditors 11 (2,040) (2,731)
____________ ____________
Net current assets 14,019 3,931
____________ ____________
Total assets less current liabilities 660,691 607,336
Non-current liabilities
3.5% Convertible Unsecured Loan Stock 2018 12 (57,614) (56,990)
____________ ____________
Net assets 603,077 550,346
____________ ____________
Share capital and reserves
Called-up share capital 13 39,275 39,274
Share premium account 4,475 4,452
Special reserve 6,726 6,726
Equity component of 3.5% Convertible Unsecured Loan Stock 2018 12 1,981 2,572
Capital redemption reserve 16,945 16,945
Capital reserve 511,112 460,820
Revenue reserve 22,563 19,557
____________ ____________
Equity shareholders' funds 14 603,077 550,346
____________ ____________
Net asset value per Ordinary share (pence) 14 307.10 280.26
____________ ____________
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS FUNDS (audited)
For the year ended 31 August 2014
For the year ended 31 August 2014
Share Equity Capital
Share premium Special component redemption Capital Revenue
capital account reserve CULS 2018 reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 August 2013 39,274 4,452 6,726 2,572 16,945 460,820 19,557 550,346
Return on ordinary activities after taxation - - - - - 50,292 6,737 57,029
Issue of new Ordinary shares from conversion of 3.5% Convertible Unsecured Loan Stock 2018 1 23 - (2) - - - 22
Dividend paid - - - - - - (4,320) (4,320)
Transfer of notional interest element on 3.5% Convertible Unsecured Loan Stock 2018 - - - (589) - - 589 -
______ ______ ______ ______ ______ ______ ______ ______
Balance at 31 August 2014 39,275 4,475 6,726 1,981 16,945 511,112 22,563 603,077
______ ______ ______ ______ ______ ______ ______ ______
For the year ended 31 August 2013
Share Equity Capital
Share premium Special component redemption Capital Revenue
capital account reserve CULS 2018 reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 August 2012 39,272 4,427 6,726 3,163 16,945 432,669 16,563 519,765
Return on ordinary activities after taxation - - - - - 28,151 6,725 34,876
Issue of new Ordinary shares from conversion of 3.5% Convertible Unsecured Loan Stock 2018 2 25 - (2) - - - 25
Dividend paid - - - - - - (4,320) (4,320)
Transfer of notional interest element on 3.5% Convertible Unsecured Loan Stock 2018 - - - (589) - - 589 -
______ ______ ______ ______ ______ ______ ______ ______
Balance at 31 August 2013 39,274 4,452 6,726 2,572 16,945 460,820 19,557 550,346
______ ______ ______ ______ ______ ______ ______ ______
The capital reserve includes investment holding gains amounting to £270,246,000 (2013 - £243,428,000), as disclosed in note 9.
The revenue reserve represents the amount of the Company's reserves distributable by way of dividend.
The accompanying notes are an integral part of the financial statements.
CASHFLOW STATEMENT (audited)
Year ended Year ended
31 August 2014 31 August 2013
Notes £'000 £'000 £'000 £'000
Net cash inflow from operating activities 15 10,082 9,593
Servicing of finance
Bank and CULS interest paid (2,094) (2,094)
Taxation
Net tax paid (374) (414)
Financial investment
Purchases of investments (42,569) (32,028)
Sales of investments 48,303 30,947
_______ _______
Net cash inflow/(outflow) from financial investment 5,734 (1,081)
Equity dividend paid (4,320) (4,320)
Management of liquid resources
Purchase of money market funds (7,000) -
_______ _______
Increase in cash 16 2,028 1,684
_______ _______
Reconciliation of net cash flow to movements in net debt
Increase in cash as above 2,028 1,684
Net change in liquid resources 7,000 -
Other non-cash movements (624) (624)
Exchange movements (43) (111)
_______ _______
Movement in net debt in the year 8,361 949
Net debt at 1 September (52,766) (53,715)
_______ _______
Net debt at 31 August (44,405) (52,766)
_______ _______
NOTES TO THE ACCOUNTS (audited)
1. Accounting policies
(a) Basis of accounting
The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments and in accordance with the
applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They
have also been prepared on the assumption that approval as an investment trust will continue to be granted.
The Directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. Further detail is included
in the Statement of Corporate Governance (unaudited) on page 27 of the 2014 Annual Report and Accounts¹.
The financial statements, and the net asset value per share figures, have been prepared in accordance with UK Generally Accepted Accounting Practice ('UK GAAP').
(b) Investments
Listed investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised on the trade date at
fair value, which is generally deemed to be the cost of the investment at that point. Subsequent to initial recognition, investments are valued at fair value, which for
listed investments is deemed to be bid market prices or closing prices for SETS (London Stock Exchange's electronic trading service) stocks sourced from the London Stock
Exchange. Gains and losses arising from changes in fair value are included as a capital item in the Income Statement and are ultimately recognised in the capital reserve.
(c) Income
Dividends (other than special dividends), including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex
-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to capital, if circumstances dictate. Dividends receivable on equity shares where no
ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a
time-apportioned basis so as to reflect the effective yield on shares. Other returns on non-equity shares are recognised when the right to return is established. The
fixed return on a debt security, if material, is recognised on a time apportioned basis so as to reflect the effective yield on each security. Where the Company has
elected to receive its dividends in the form of additional shares rather than cash, the amount of the foregone cash dividend is recognised as income. Any excess in the
value of the shares received over the amount of cash dividend foregone is recognised in capital reserves. Interest receivable on bank balances is dealt with on an
accruals basis.
(d) Expenses
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Income Statement with the exception of expenses directly
relating to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds. Such transaction
costs are disclosed in accordance with the SORP. These expenses are charged to the capital column of the Income Statement and are separately identified and disclosed in
note 9.
(e) Deferred taxation
Deferred taxation is provided on all timing differences, that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an
obligation to pay more or a right to pay less tax in future have occurred at the Balance Sheet date, measured on an undiscounted basis and based on enacted tax rates.
This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal
of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the
accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to
meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the
revaluation or disposal of investments.
(f) Capital reserves
Gains and losses on investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the
capital reserveRecent news on Associated British Foods
See all newsREG - Assoc.British Foods - Transaction in Own Shares
AnnouncementREG - Assoc.British Foods - Director/PDMR Shareholding
AnnouncementREG - Assoc.British Foods - Transaction in Own Shares
AnnouncementREG - Assoc.British Foods - Transaction in Own Shares
AnnouncementREG - Assoc.British Foods - Transaction in Own Shares
Announcement