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ET. - Establishment Investment Trust News Story

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Last Trade - 12/07/19

Sector
Financials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £-1.06m
Position in Universe th / 1819

Establishment InvTst - Annual Financial Report

RNS Number : 0025B
Establishment Inv. Trust PLC (The)
04 June 2019
 

THE ESTABLISHMENT INVESTMENT TRUST PLC

 

Announcement of Financial Results for the year ended 31 March 2019

LEI: 213800I9IT25LOQ1UW49

Objective of the Company

 

The investment objective of the Company is to achieve long-term capital growth from a managed international portfolio of securities. The preservation of capital is of primary importance to the investment objective.

 

The Company aims to achieve absolute returns and is not managed by reference to any equity or bond index or benchmark.

 

Investment policy

 

•     To invest primarily in equities issued by companies listed on regulated markets. With the prior approval of the Board, the Company may invest in unlisted securities.

 

•     Up to 30% of net assets may be invested in investment products managed by the Company's Investment Manager. The Company may also hold positions in investment products managed by third parties.

 

•     Up to a maximum of 15% of net assets (at cost at the date of investment) may be invested in any one security.

 

•     The Company may borrow up to a maximum of 50% of net assets.

 

Financial Highlights for the Year




Performance for the year ended 31 March 2019











At 31 March

Total return*




2019



Share price(mid market)**


205.00p

+3.7%


Net asset value per share**


227.25p

-2.9%


FTSE UK Private Investor Balanced Index***


+7.3%


MSCI UK Equity***



+7.6%


MSCI AC World Index***



+10.8%


MSCI AC Asia ex Japan Equity***



+2.4%







* Source: Bloomberg





** Alternative Performance Measures ('APMs')

*** These percentages are total returns in sterling

 

Alternative Performance Measures ('APMs')




The disclosures, as indicated by footnote ** above, are considered to represent the Company's APMs. In addition to the above APMs, other performance measures have been used by the Company to assess its performance. Those can be found in the key performance indicators section of the annual report.

 

The APMs are not calculated under Generally Accepted Accounting Principles ('GAAP') nor are they intended to substitute for measures under GAAP.

 

 

 

 

Dividends per Ordinary Share payable






31 March

31 March




2018

2019

Change

Interim and final dividends


6.00p

4.75p

-20.8%

Special dividend


4.30p

-

n/a

Total dividend


10.30p

4.75p

-53.9%

 

 





Revenue highlights







31 March

31 March




2018

2019




£'000

£'000

Change

Income from investments


1,731

1,562

-9.8%

Revenue return for the financial year


1,220

1,117

-8.4%

Revenue return per Ordinary Share


6.10p

5.59p

-8.4%

 

Chairman's Statement

 

Future of the Company

 

On 20 November 2018, the Board announced it would not be recommending Shareholders to vote in favour of continuation of the Company in its current form when the continuation vote is put forward at the forthcoming Annual General Meeting in July 2019.

 

While the Company has achieved respectable returns for Shareholders since listing in 2002, the Board together with the Investment Manager concluded that continuing in its current form is no longer an attractive option for Shareholders. The small size of the Company, limited liquidity, a perennial and persistent discount, the increasing regulatory and governance obligations and increased costs all present mounting and significant challenges.

 

Accordingly, proposals were invited to determine an attractive solution and exit for Shareholders. A total of 17 submissions were received through our brokers, Stockdale, now Shore Capital, and the independent directors, operating through the Management Engagement Committee, undertook an extensive review and met with a short list of investment managers offering credible options.

 

Subsequently, on 12 April 2019, the Board announced that it intended to put forward proposals (the "Proposals") that would put the Company into voluntary liquidation and offer Shareholders the choice of electing for any of, or any combination of, the following options:

 

·      the default option of rolling some or all of their investment into new shares at formula asset value ("FAV") to be issued by Henderson International Income Trust plc ("HINT"), and/or

·      rolling some or all of their investment into shares to be issued by VT Garraway Asian Centric Global Growth Fund (the "Garraway Fund"); and/or

·      receiving cash at net asset value ("NAV") less costs.

 

HINT is a closed-ended investment trust that seeks to provide Shareholders with a growing total annual dividend, paid quarterly, as well as capital appreciation. It is designed to help UK investors diversify their equity income streams by investing in a focused and internationally diversified portfolio of 50-80 companies outside the UK. HINT invests in undervalued companies that are out of favour which pay investors a dividend income whilst they wait for value to be realised.

 

The Garraway Fund is a new open-ended investment fund which aims to provide shareholders with capital growth and income over the longer term. It will invest in a diversified global portfolio of equities, combining both developed and Asian markets; along with the flexibility to invest in government bonds and precious metal ETFs. Quarterly distributions will be paid. Henry Thornton, the Company's outgoing investment manager will be joining Garraway Capital Management as a fund manager, responsible for Asian equities.

 

The Board are pleased that members of the Thornton family, and trustees of Thornton family trusts, whose holdings, in aggregate, amount to 7,581,964 ordinary shares in EIT - equivalent to 37.9 per cent. of the Company's issued share capital - have indicated their support for the Proposals.

 

Full details of the Proposals are included in a Circular that will be sent separately to Shareholders.

 

The Board strongly recommends that Shareholders vote against continuation at the Annual General Meeting on 10 July 2019.

 

Assuming Shareholders vote against continuation, a General Meeting will be held immediately after the Annual General Meeting of the Company to consider and approve the Proposals and, if approved, a further General Meeting will be held on 18 July 2019 to appoint a liquidator to wind up the Company.

 

Shareholders should note that those who do not make an election will be deemed to have elected to receive their entitlements in new shares to be issued by HINT.

 

The proposals provide that Shareholders taking up the rollover options into HINT and the Garraway fund should be deemed to not constitute a disposal for the purposes of the UK taxation of chargeable gains.

 

Results for the year

 

For the year ended 31 March 2019, including the 10.3p of dividends paid during the year, the Company delivered share price and NAV total returns of +3.7% (2018: 8.9%) and -2.9% (2018: -2.5%) respectively.

 

Markets suffered from volatility during the last financial year, primarily dictated by the US Federal Reserve's changes in monetary policy and interest rate expectations. Global markets sold off sharply during the latter half of 2018 as the Fed attempted Quantitative Tightening "QT" by selling bonds off their balance sheet and talking up potential interest rate increases. However, some slowing of the US economy, a global growth scare and deteriorating trade flows compelled the Fed to perform a "volte face" restoring confidence in a more benign monetary and interest rate outlook; hence providing the catalyst for a sharp rebound in markets in the first calendar quarter of 2019. Market sentiment has also been badly affected by US / China relations, the tit-for-tat imposition of trade tariffs and a general slide towards protectionism and regulation, threatening the landscape of free trade and the benefits of globalisation.

 

Dividends

 

The Board has declared a second interim dividend for the year ended 31 March 2019 of 1.75p per Ordinary Share, which will be paid on 4 July 2019 to Shareholders on the register as at 14 June 2019 in lieu of a final dividend for the year.  The dividend has been declared as an interim dividend so that it can be paid ahead of the calculation date of the Formula Asset Value ("FAV") required for the rollover option into HINT. In addition, the Board has declared an interim dividend in respect of the period from 1 April 2019 to 31 May 2019 of 1.25p per Ordinary Share, which will also be paid on 4 July 2019 to Shareholders on the register as at 14 June 2019.  The reason for the additional interim dividend is to ensure that the Company meets the investment trust distribution requirement in the period to commencement of liquidation.   Therefore, the aggregate amount which Shareholders will receive equates to 3.0p per Ordinary Share.

 

Valete: Vestigia Nulla Retrorsum  

 

The Establishment Trust was originally created by Richard Thornton as a Luxembourg SICAV and then relaunched as an investment trust listing on the London Stock Exchange in March 2002 with a market capitalisation of £20 million. As many Shareholders know, Richard was a legendary investor, intrepid early mover and convert to the potential of Asian and Japanese markets, co-founder of GT Management and founder of Thornton & Co and to quote Tom Griffin, his partner at GT had "an uncanny sixth sense about markets". Richard was a great proponent of investment trusts, believed that they should hold a stake in their investment manager, use gearing as a valuable weapon and that the investment manager should be represented on the board; the latter being less compatible with modern governance. He insisted on portfolio discipline especially taking losses early before accidents became disasters; run your winners, cut your losses. His great mantra was that money times confidence sets the level of any market.

 

Since launch and over the 17 years of the Company's life, the portfolio has been managed by Richard's son, Henry Thornton, first at BDT Invest and then at Blackfriars Asset Management. On behalf of Shareholders, I would like to thank Henry for his efforts in achieving solid NAV total returns of 7.4% per annum since launch until 31 March 2019 and wish him well with his new venture at VT Garraway.

 

I would like to thank Shareholders for their support to the Company since its inception.  I would also like to thank my fellow directors and our Company Secretary, PraxisIFM Fund Services (UK) Limited, Broker, Shore Capital and our legal advisers, Stephenson Harwood for their unstinting efforts in constructing a scheme and proposals designed in the best interests of Shareholders, which facilitates an attractive rollover choice between closed and open end funds or a cash exit.

 

 

Harry Wells

 

Chairman

 

3 June 2019

Investment Manager's Report

 

For the financial year to 31 March 2019 the share price fell 1.4% while the Net Asset Value declined by 7.8%. Including dividends totalling 10.3p paid during the year, the total returns of the share price and the net asset value were 3.7% and -2.9% respectively. For comparative purposes, the MSCI AC Asia ex Japan Index rose 2.4%, the MSCI AC World Index gained 10.8% and the FTSE UK Private Investor Balanced Index advanced 7.3%.  At year end, the discount stood at 9.8%.

 

Since launch in March 2002, the share price and net asset value have compounded at 7.1% and 7.4% respectively in total return terms.  This is net of costs which have averaged 1.5% per annum over the past decade.  For comparative purposes, the MSCI AC Asia ex Japan Index has compounded at 9.8%, the MSCI AC World Index at 7.1% and the FTSE UK Private Investor Balanced Index at 6.3%. Dividend growth (excluding recent special dividends) has compounded at 9% since launch.

 

Over the life of the Company, your Investment Manager has always maintained a heavy commitment to Asia ex Japan equities but has also invested in Japanese equities, gold bullion ETFs, a variety of hedge funds, a number of investment trusts and more recently has held a number of high yielding UK equities.

 

Voluntary Liquidation

 

On 20 November 2018, the Board and the Investment Manager announced that they would not recommend that Shareholders vote in favour of continuation of the Company at the forthcoming AGM in July 2019.

 

On 12 April 2019 the Board announced that it intends to put forward proposals to put the company into voluntary liquidation.  Three options, or any combination of them, are available for Shareholders:

 

 

1.   Receiving shares in VT Garraway Asian Centric Global Growth Fund (Garraway fund).  This is a newly established open-ended vehicle which aims to provide capital growth and income over the longer term. It will invest in both developed equity markets and Asian equities.  The Garraway Fund will also invest in market neutral products and has the ability to purchase gold bullion ETFs and hold government bonds if the investment manager considers this appropriate, for example due to excessive equity valuations.  Equity exposure will always be a minimum of 65%. Henry Thornton, who has managed the Company's portfolio since launch, is joining the growing investment team at Garraway and will be managing the Asian portfolio and sitting on the investment committee steering overall asset allocation.

 

2.   Receiving shares in Henderson International Income Trust plc (HINT).  This closed-ended investment trust seeks to provide Shareholders with a growing total annual dividend, paid quarterly, as well as capital appreciation. It is designed to help UK investors diversify their equity income streams by investing in a focused and internationally diversified portfolio of 50-80 companies outside the UK. Henderson International Income Trust plc invests in undervalued companies that are out of favour which pay investors a dividend income whilst they wait for value to be realised. Ben Lofthouse is the lead fund manager.

 

3.   Receiving cash at net asset value less costs of liquidation.  This option constitutes a disposal for capital gains tax purposes.

 

 

The Board has signed heads of terms with the boards of both HINT and the Garraway Fund. The Proposals have been agreed in principle and will be effected by way of a scheme of reconstruction of EIT under section 110 of the Insolvency Act 1986, resulting in the voluntary liquidation of EIT and a tax efficient rollover of assets of EIT into either HINT or the Garraway Fund. The transaction will be subject to, inter alia, regulatory consent and approval from Shareholders of EIT and HINT.

 

Shareholders who do not make an election will be deemed to have elected to receive their entitlements in new shares to be issued by HINT. 

 

Neither the option to roll into HINT nor into the Garraway Fund is subject to a minimum rollover amount and neither option should constitute a disposal for capital gains tax purposes.

 

Financial Results

 

The portfolio generated gross income of £1,562,000 during the year, a 10% decrease from the £1,731,000 generated in the preceding year.  Excluding fees payable to the Investment Manager, expenses amounted to £279,000, a decrease of 13.1% relative to the previous year.  The total fees payable to the Investment Manager (excluding research costs) decreased 5.5% to £342,000 (of which 80% are charged to capital).  The Company recorded a revenue return on ordinary activities after tax of £1,117,000 (2018: £1,220,000). The Company made a capital loss after tax of £2,923,000 (2018: £2,437,000). Therefore the total loss after tax for the Company was £1,806,000 (2018: £1,217,000).

 

Blackfriars Asset Management Limited

Investment Manager

3 June 2019

 

Other Information

 

Results and dividend

 

The revenue return for the financial year ended 31 March 2019 after taxation amounted to £1,117,000 (2018: £1,220,000). The Company made a capital loss after tax for the financial year ended 31 March 2019 of £2,923,000 (2018: capital loss of £2,437,000). Therefore, the total loss after tax for the Company for the financial year ended 31 March 2019 was £1,806,000 (2018: loss of £1,217,000).

 

An interim dividend of 3.0p per Ordinary Share was paid on 21 December 2018 to Shareholders on the register at the close of business on 30 November 2018. A second interim dividend of 1.75p per ordinary share has been declared and will be payable on 4 July 2019 to Shareholders on the register on 14 June 2019.

 

In aggregate dividends of 4.75p (2018: 10.3p) have been paid and declared in respect of the year ended 31 March 2019.

 

Risks and uncertainties

 

The review of the year is presented in the Chairman's Statement and the Investment Manager's Report. The financial instruments disclosures are set out in note 17 to the Financial Statements, which, together with the information below, provide details of the principal risks and uncertainties facing the Company.

 

Investment risk

 

The Company is predominantly a vehicle for overseas equity investment with the attendant risks relating to strategy, country, industrial sector and stock selection applicable to any international or regional equity portfolio.

 

The prime risk of investing in the Company is a fall in equity prices and adverse movements in foreign currency exchange rates, as currency movements can have a significant impact on capital values. Whilst foreign currency exposures against sterling are reviewed on a regular basis, these are inherent in investing in overseas securities. At present the Company has no currency hedging contracts in place nor plans to arrange them. The Investment Manager will take into account the possibility of currency gain or loss when evaluating investments for the Company.

 

Risk Management

 

Equity markets are subject to fluctuation and, as such, investment in equities is inherently risky. The Investment Manager is experienced and employs its expertise in selecting the stocks in which the Company invests. The Investment Manager spreads the investment risk over a wide portfolio of investments.

 

Regulatory risk

 

Breaches of Section 1158 of the Corporation Tax Act could result in loss of investment trust status. Loss of investment trust status would lead to the Company being subject to tax on any gains on the disposal of its investments. Breaches of the FCA's rules applicable to listed entities could result in financial penalties or suspension of trading of the Company's shares on the London Stock Exchange. Breaches of the Companies Act 2006, The Financial Services and Markets Act, Accounting Standards, The Listing Rules, Disclosure Guidance and Transparency Rules or Prospectus Rules could result in financial penalties or legal proceedings against the Company or its Directors. Failure of the Investment Manager to meet its regulatory obligations could have adverse consequences for the Company.

 

Risk Management

 

The Company has contracted out relevant services to appropriately qualified third party professionals. The Investment Manager reports on regulatory matters to the Board on a quarterly basis. The assessment of regulatory risks forms part of the Board's risk assessment programme.

 

Counterparty risk

 

The Company bears the risk of settlement default by clearing houses and exchanges and the risk of delayed repossession or disputed title of the Company's assets in the event of failure of the Custodian, together with operational and regulatory risks, and the risk of errors and omissions.

 

Risk Management

 

The Investment Manager undertakes transactions only with brokers pre-approved by the Investment Manager and on the basis of delivery against payment.

 

Additional risks are set out in note 17 to the Financial Statements, which covers interest rate risk, equity price risk, liquidity risk and credit risk.

 

Role of the Board

 

The Board monitors the critical risks and uncertainties faced by the Company through regular review of a matrix of risks, key controls and mitigating factors.

 

As part of the review of operational risks, the Board satisfies itself that the Investment Manager has processes in place to ensure limits are not breached. Performance and risk controls are the focus of Boardroom discussion with the Investment Manager. The Board reviews the management of the portfolio and monitors the Investment Manager's adherence to the investment mandate. This is achieved by comparing the absolute return generated by the portfolio with comparable investments and various indices, the breakdown of the portfolio into equities, investment funds, bonds, cash and examination of the level of concentration within the equity portfolio by sector and geography.

 

Statement of Directors' Responsibilities in respect of the Annual Report, the Directors' Remuneration Report and Financial Statements

 

 

The Directors are responsible for preparing the Annual Report, the Directors' Remuneration Policy and Implementation Reports and the Financial Statements in accordance with applicable law and regulations. Company law requires the Directors to prepare Financial Statements for each financial year. In conformity with the law, the Directors have elected to prepare Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the net return 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 judgements and accounting 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;

 

•     prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and

 

•     in compliance with the Companies Act 2006, prepare a Directors' Report, a Strategic Report and a Directors' Remuneration Report.

 

The Directors are responsible for keeping adequate accounting records, sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable the Directors to ensure that the Financial Statements and Directors' Remuneration Report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

The Financial Statements are published on www.blackfriarsam.com, which is a website maintained by the Company's Investment Manager. The Directors are responsible for the maintenance and integrity of the Company's information that is available on the website. The Directors do not take responsibility for the maintenance of the Investment Manager's website. Legislation in the United Kingdom governing the preparation and dissemination of the Financial Statements may differ from legislation in other jurisdictions.

 

Directors' confirmation statement

 

Each of the Directors, (Harry Wells (Chairman), Jim Ryall, Gregory Shenkman, Susan Thornton and Tom Waring), confirms that, to the best of the knowledge of that Director:

 

•     the Financial Statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and net return of the Company; and

 

•     the Annual Report, including the Strategic Report, includes 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 it faces.

 

Having taken advice from the Audit and Risk Committee, the Directors consider that the Annual Report and Financial Statements taken as a whole are fair, balanced and understandable and provide information necessary for Shareholders to assess the Company's position and performance, business model and strategy.

 

Income Statement








For the year ended 31 March


















2019

2018



Revenue

Capital

Total

Revenue

Capital

Total


Notes

£'000

£'000

£'000

£'000

£'000

£'000

Losses on investments held at fair value through profit or loss

11

-

(2,661)

(2,661)

-

(1,854)

(1,854)

Gains/(losses) on foreign exchange movements


-

43

43

-

(267)

(267)

Income

3

1,562

-

1,562

1,731

-

1,731

Investment management fees

4

(69)

(273)

(342)

(72)

(290)

(362)

Other expenses

5

(279)

(32)

(311)

(321)

(26)

(347)

Return/(loss) before tax


1,214

(2,923)

(1,709)

1,338

(2,437)

(1,099)

Taxation for the year

8

(97)

-

(97)

(118)

-

(118)

Return/(loss) for the financial year


1,117

(2,923)

(1,806)

1,220

(2,437)

(1,217)

Return/(loss) per Ordinary Share

10

5.59p

(14.62)p

(9.03)p

6.10p

(12.19)p

(6.09)p









All revenue and capital items in the above statement derive from continuing operations.

The total columns in this statement represent the Income Statement of the Company. The revenue and capital columns are supplementary to this and are prepared under the guidance published by the Association of Investment Companies.

As all the gains and losses of the Company have been reflected in the above statement, the return for the financial year is also the total comprehensive income for the year.









Statement of Financial Position




 

At 31 March




 





 





 



2019

2018

 


Note

£'000

£'000

 

Fixed assets




 

Investments at fair value through profit or loss

 11

42,223

47,130

 

Current assets




 

Debtors

 12

209

136

 

Cash at bank


3,129

2,118

 



3,338

2,254

 

Payables: amounts falling due within one year

 13

(112)

(69)

 

Net current assets


3,226

2,185

 

Net assets


45,449

49,315

 





 





 

Capital and reserves




 

Called up share capital

 14

5,000

5,000

 

Share premium


14,701

14,701

 

Capital reserve

 15

24,947

28,730

 

Revenue reserve


801

884

 

Equity Shareholders' funds


45,449

49,315

 





 

Net asset value per Ordinary Share

16

227.25p

246.58p

 





 

 

Statement of Changes in Equity






 

For the year ended 31 March 2019







 








 



 Share

 Share

 Capital

 Revenue


 



 capital

 premium

 reserve

 reserve

 Total

 


Note

 £'000

 £'000

 £'000

 £'000

 £'000

 

At 31 March 2018


5,000

14,701

28,730

884

49,315

 

Return/(loss) for the financial year


-

-

(2,923)

1,117

(1,806)

 

Dividends paid in the year

9

-

-

(860)

(1,200)

(2,060)

 

At 31 March 2019


5,000

14,701

24,947

801

45,449

 








 

For the year ended 31 March 2018







 








 



Share

Share

Capital

Revenue


 



capital

premium

reserve

reserve

Total

 


Note

£'000

£'000

£'000

£'000

£'000

 

At 31 March 2017


5,000

14,701

32,027

904

52,632

 

Return/(loss) for the financial year


-

-

(2,437)

1,220

(1,217)

 

Dividends paid in the year

9

-

-

(860)

(1,240)

(2,100)

 

At 31 March 2018


5,000

14,701

28,730

884

49,315

 








 

Statement of Cash Flows




 

For the year ended 31 March




 



2019

2018

 


Notes

£'000

£'000

 

Cash flows from operating activities




 

Return for the financial year*


(1,806)

(1,217)

 

Adjustments for:




 

Taxation


97

118

 

Losses on investments held at fair value through profit or loss


2,693

1,880

 

(Gains)/losses on exchange movements


(43)

267

 

(Increase)/decrease in trade debtors


(41)

43

 

Increase/(decrease) in trade creditors


43

(29)

 

Cash inflow from operations


943

1,062

 

Taxation


(97)

(118)

 

Net cash generated from operating activities


846

944

 

Cash flows from investing activities




 

Purchase of investments


(13,455)

(21,449)

 

Sale of investments


15,669

21,833

 

Research costs**


(32)

(26)

 

Net cash generated from investing activities

2,182

358

 

Cash flows from financing activities




 

Equity dividends paid

9

(2,060)

(2,100)

 

Net cash used for financing activities

(2,060)

(2,100)

 





 

Net increase/(decrease) in cash and cash equivalents


968

(798)

 

Foreign exchange movements


43

(267)

 

Cash and cash equivalents at beginning of year


2,118

3,183

 

Cash and cash equivalents at end of year

3,129

2,118

 





 

* Cash inflow from dividends was £1,522,000 (2018: £1,756,000).



 

 ** See note 5 and 7




 

 

Notes to the Financial Statements

 


 

1. Accounting policies

 

The Company is incorporated in England and is an investment company within the meaning of Section 833 of the Companies Act 2006. The Company's registered office is Mermaid House, 2 Puddle Dock, London, EC4V 3DB.

 

A summary of the principal accounting policies, all of which have been applied consistently throughout the year, is set out below:

 


 

(a) Basis of accounting

 

The accounts are prepared on the historical cost basis of accounting, except for the measurement at fair value of investments. The Financial Statements have been prepared in accordance with applicable United Kingdom accounting practices, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and with the AIC Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in November 2014, and updated in February 2018.

 

 

All of the Company's operations are of a continuing nature.

 

The policies applied in these financial statements are consistent with those applied in the preceding year.

 


 

(b) Valuation of investments

 

When a purchase or sale is made under a contract, the terms of which require delivery within the time frame of the relevant market, the investments concerned are recognised or derecognised on the trade date.

 

The Company's investments are recognised on the trade date and are initially measured at fair value. Investments are measured at subsequent reporting dates at fair value, and changes in fair value are included in the Income Statement as a capital item. For listed investments, fair value is deemed to be either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.

 

Any investments which are suspended from trading are measured by the Directors at estimated fair value, taking into account the relevant circumstances.

 

Unquoted investments are valued by the Directors at fair value. The Company held no unquoted investments at the year end.

 

 

The Company held all its investments as part of the investment portfolio and measured at fair value.

 


 

(c) Reporting currency

 

The accounts are presented in Sterling which is the functional currency of the Company. Sterling is the reference currency for this UK registered and listed company.

 


 

(d) Income

 

Dividends are credited to the revenue account on an ex-dividend basis or, if later, as soon as entitlement has been established. The Company owns no fixed interest investments.

 

 

Bank and deposit interest is accounted for on an accruals basis.

 

 

(e) Dividends

 

Dividends paid by the Company are accounted for in the Financial Statements in respect of the year in which they are paid, in the case of interim dividends, or when they are approved by Shareholders in the final dividends.

 


 

(f) Expenses

 

All expenses are accounted for on an accruals basis. Expenses are recognised through the Income Statement as revenue items except as follows:

 

- the investment management fee has been allocated 80% to capital reserve and 20% to the revenue account within the Income Statement reflecting the Board's expected long-term split of returns in the form of capital gains and income respectively from the investment portfolio;

 

- expenses which are incidental to the sale of an investment are deducted from the proceeds of the sale of that investment;

 

- research costs and any other expenses incurred in connection with the acquisition or disposal of an investment are allocated to capital reserve - through the Income Statement;

 

- finance costs are accounted for on an accruals basis using the effective interest method; and

 

- finance costs of debt in so far as they relate to the financing of the Company's investments have been allocated 80% to the capital reserve and 20% to the revenue account within the Income Statement.

 


 

(g) Taxation

 

Irrecoverable withholding tax on overseas dividends is recognised on an accrual basis in the Income Statement. Deferred taxation is provided on all differences, which have originated but not reversed by the Statement of Financial Position date, calculated at the rate at which it is anticipated the timing differences will reverse. Deferred tax assets are recognised only when, based on available evidence, it is more likely than not that there will be taxable profits in the future against which the deferred tax asset can be offset.

 

Tax payable is based on the taxable profit for the year. Taxable profit may differ from net profit as reported in the Income statement because it excludes items of income or expenditure that are taxable or deductible in other periods and it further excludes items that are not taxable or deductible.

 


 

(h) Foreign currency

 

Transactions and investment income denominated in foreign currencies are recorded in Sterling at actual exchange rates at the date of the transaction or receipt. Monetary assets and liabilities denominated in foreign currencies at the year end are recorded in Sterling at the rates of exchange prevailing at the year end. Any gain or loss arising from a change in exchange rates, subsequent to the date of the transaction, is included as an exchange gain or loss in the capital or revenue column of the Income Statement, depending on whether the gain or loss is of a capital or revenue nature .

 

The value of investments in foreign currencies is expressed in Sterling at the rates of exchange prevailing at the year end. Surpluses and deficits arising from conversion at this rate of exchange are included as an exchange gain or loss in the capital column of the Income Statement and taken to the capital reserve.

 


 

(i) Reserve

 

The following are taken to capital reserve:

 

Investment holding gains:

 

- Increase and decrease in the valuation of investments held at the year end

 

Other:

 

- Gains and losses on the disposal of investments;

 

- Exchange differences of a capital nature;

 

- Expenses, together with the related taxation effect, allocated to this reserve in accordance with the
above policies.

 

The following are taken to revenue reserve:

 

- the net revenue for the year is transferred to the revenue reserve and the final dividends are funded from this reserve.

 


 

(j) Distributable reserves

 

Distributable reserves comprise revenue reserves and the realised capital reserve.

 


 

(k) Going concern

 

The financial statements have been prepared on a going concern basis. As discussed further in the Directors' Report, on 20 November 2018, the Directors of the Company and the Investment Manager announced that they would not recommend that Shareholders vote in favour of continuation of the Company it its current form when the continuation vote is put forward at the next Annual General Meeting.

 

Given that the Company has significant financial resources and that the continuation vote and the Proposals are yet to be voted on by Shareholders, the Directors consider it appropriate for the Company to prepare the accounts on a going concern basis. The material uncertainty over continuation casts doubt on the likelihood that the Company will continue as a going concern. The financial statements do not include any adjustments that would result, if the Company's accounts were not prepared on a going concern basis.

 

(l) Estimates and assumptions

 

The preparation of the Financial Statements requires the directors to make estimates and assumptions that affect items reported in the Statement of Financial Position and Income Statement. Although these estimates are based on management's best knowledge of current facts, circumstances and, to some extent, future events and actions, the Company's actual results may ultimately differ from those estimates, possibly significantly.

 


 

(m) Segmental reporting

 

The Directors are of the opinion that the Company is engaged in a single segment of business being the investment business.

 

 

2. Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements requires the Directors to make judgements, estimates and assumptions that affect the reported amounts in the primary financial statements and the accompanying disclosures. These assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the current and future periods, depending on circumstance.

The Directors do not believe that any significant accounting judgements or estimates have been applied to this set of financial statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

 

3. Income




2019

2018


£'000

£'000

Income from investments:



Overseas dividends

1,164

1,359

UK dividends

380

360

Other income

18

12


1,562

1,731

 

4. Investment management fees







 2019

 2018


 Revenue

 Capital

 Total

 Revenue

 Capital

 Total


 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 Investment management fees

81

321

402

86

345

431

 Less management fee rebates

(12)

(48)

(60)

(14)

(55)

(69)

 Total

69

273

342

72

290

362








To avoid double charging investment management fees, the Investment Manager has agreed to rebate any periodic management fee that it receives from the Company by the amount of fees receivable by it from Blackfriars Asset Management Limited managed products ("Blackfriars products") in respect of the Company's investments in those funds. The Investment Manager has agreed that any performance fees that it earns from Blackfriars' products in respect of the Company's investment in those funds will be rebated to the Company.


As at 31 March 2019 the Company had investments in the following Blackfriars products:


362,500 shares in Blackfriars Oriental Focus Fund 'B' at a total cost of £4,337,087 and a valuation at 31 March 2019 of £6,187,664.


Details of the investment management agreement are disclosed in note 7.

 

5. Other expenses




2019

2018


£'000

£'000

 Revenue expenses:



 Administration and secretarial services

72

73

 Directors' fees (see note 6)

74

74

 Directors' national insurance

3

3

Auditor's remuneration - statutory 

17

17

 UK taxation compliance services

8

8

 Overseas tax compliance services

7

17

 Custodian fees

37

30

 Registrar fees

16

21

 Broker fees

31

31

 Other expenses

14

47

 Total revenue expenses

279

321




 Capital expenses:



 Research costs

32

26

 Total capital expenses

32

26




 Total other expenses

311

347

 

No other non-audit services were performed during the year.

6. Directors' emoluments




2019

2018


£'000

£'000

 Directors' fees

74

74

 

The Chairman and Directors received emoluments of £22,000 and £16,500 (2018: £22,000 and £16,500) per annum respectively, and the Chairman of the Audit Committee receives a further £2,750 (2018: £2,750) per annum. Tom Waring waived his entitlement to Directors' fees equivalent to £16,500 (2018: £16,500).

 

7. Disclosure of interests


Investment management

In accordance with an investment management agreement between the Company and Blackfriars Asset Management Limited ("Blackfriars") dated 8 July 2014 Blackfriars has provided investment management services to the Company with effect from 15 July 2014 for which Blackfriars receives an annual fee of 1% of the Adjusted Market Capitalisation of the Company calculated on the last business day of each calendar month and payable in arrears in respect of each calendar month. The Adjusted Market Capitalisation per Share on the last business day of any calendar month is the average of the mid-market prices of a Share on each business day in such calendar month. The Adjusted Market Capitalisation of the Company on the last business day of any calendar month is the Adjusted Market Capitalisation per Share on that day multiplied by the number of Shares in issue on that day.


The Company has entered into a Research Purchasing Agreement with the Investment Manager to meet the cost of sell side research. Research costs incurred by the Company in the year are disclosed in note 5.


No performance fee is in place in the investment management agreement with Blackfriars.


Blackfriars' appointment as Investment Manager is subject to termination by the Company on six months' notice, such notice has been served and will expire on 18 July 2019.


The amount charged for investment management fees during the year is shown in note 4 and £55,662 (2018: £30,791) of the fee for the current year was outstanding as a creditor as at the Statement of Financial Position date.


Company Secretary and Administrator

With effect from 1 June 2017, the Company Secretary and Administrator received a fee payable monthly at a rate of one twelfth of £37,500 plus one twelfth of 0.085% of the Company's Market Capitalisation at the end of each month subject to a minimum monthly fee of £6,000 plus applicable VAT.

 

8. Taxation








 2019

 2018


 Revenue

 Capital

 Total

 Revenue

 Capital

 Total


 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

 Overseas tax suffered

97

-

97

118

-

118








The current taxation charge for the year is different from the standard rate of corporation tax in the UK of 19% (2018: 19%). The differences are explained below.












2019


 2018





£'000


£'000

Net return before tax




(1,709)


(1,099)

Theoretical tax at UK corporation tax rate of 19% (2018: 19%)

(325)


(209)

Effects of:







Capital gains not subject to corporation tax



503


408

UK dividends which are not taxable



(72)


(68)

Overseas dividends which are not taxable



(221)


(258)

Irrecoverable overseas tax




97


118

Movement in excess expenses




115


127

Actual tax charge




97


118








The Company is an Investment Trust and, whilst it obtains exemption under section 1159 of the Corporation Tax Act 2010, is not subject to UK taxation on capital gains.


In the opinion of the Directors the Company has complied with the requirements of section 1159 of the Corporation Tax Act 2010.


Factors that may affect future tax charges

The Company has not recognised a deferred tax asset of £1,058,000 (2018: £836,000) based on a tax rate of 17% (2018: 17%) and unutilised expenses. These expenses could only be utilised to offset against taxable profits, if the Company were to generate taxable profits in the future.

 

9. Dividends














(i) Dividends paid during the financial year











2019


2018





£'000


£'000

Final dividend for the year ended 31 March 2018 of 3.0p per Ordinary Share (2017:  3.2p)

600


640

Interim dividend for the year ended 31 March 2019 of 3.0p per Ordinary Share (2018:  3.0p)

600


600

Special dividend for the year ended 31 March 2018 of 4.3p per Ordinary Share (2017:  4.3p)

860


860





2,060


2,100

(ii) Dividends declared in respect of the financial year







The total dividends payable in respect of the financial year, which form the basis for complying with section 1159 of the Corporation Tax Act 2010 are set out below:









 2019

 2018


 Revenue

 Capital

 Total

 Revenue

 Capital

 Total


 £'000

 £'000

 £'000

 £'000

 £'000

 £'000

Interim dividend paid for the year ended 31 March 2019 of 3.0p per Ordinary Share (2018:  3.0p)

600

-

600

600

-

600

Special dividend for the year ended 31 March 2019 of nil per Ordinary Share (2018:  4.3p)

-

-

-

-

860

860

Second interim dividend payable for the year ended 31 March 2019 of 1.75p per Ordinary Share (2018: nil)

350

-

350

-

-

-

Proposed final dividend for the year ended 31 March 2019 of nil per Ordinary Share (2018:  3.0p)

-

-

-

600

-

600


950

-

950

1,200

860

2,060

 

10. Return per Ordinary Share














2019

2018


Revenue

Capital

Total

Revenue

Capital

Total

Return after tax

£1,117,000

(£2,923,000)

(£1,806,000)

£1,220,000

(£2,437,000)

(£1,217,000)

Weighted average number of Ordinary Shares in issue

  20,000,000

  20,000,000

  20,000,000

  20,000,000

  20,000,000

  20,000,000

Return per Ordinary Share

             5.59p

(14.62)p

(9.03)p

             6.10p

(12.19)p

(6.09)p

 

11. Investments held at fair value through profit or loss



 






 


2019

2018



 


£'000

£'000



 

Investments listed on a recognised investment exchange

42,223

47,130



 






 

Opening book cost

38,287

35,937



 

Opening unrealised gains on investments

8,843

14,140



 

Opening valuation

47,130

50,077



 

Movements in year:





 

Purchases at cost

13,455

20,106



 

Sales of investments - cost

(15,781)

(17,756)



 

Movement in unrealised gains on investments

(2,581)

(5,297)



 

Closing valuation

42,223

47,130



 

Closing book cost

35,961

38,287



 

Closing unrealised gains on investments

6,262

8,843



 

Total investments held at fair value through profit or loss

42,223

47,130



 






 

Investment transaction costs on purchases and sales of investments during the year to 31 March 2019 amounted to £17,000 and £38,000 respectively (2018: £65,000 and £76,000 respectively).

 

Losses on investments in year per Income Statement





 


2019

2018



 


£'000

£'000



 

(Losses)/gains on disposal of investments

(80)

3,314



 

Capital distributions received

-

129



 

Movement in unrealised gains of investments held

(2,581)

(5,297)



 

Balance at 31 March

(2,661)

(1,854)



 






 

Significant holdings





 

Included in the above are the following investments in investment funds in which the Company has an interest of 10% or more of the nominal value of the shares of that class in the investee company as at 31 March 2019.

 






 


Country of




 


registration

Class

% of

% of

 

Investment

and listing

of capital

class held

fund held

 

Blackfriars Oriental Focus Fund

Republic of Ireland

'B' US Dollar

55.37%

34.98%

 






 

The Company has arrangements in place with the Investment Manager to avoid double charging of fees and expenses on investments made in other products managed by the Investment Manager (see note 4).

 

 

12. Debtors



 




 


2019

2018

 


£'000

£'000

 

VAT recoverable

18

-

 

Prepayments and accrued income

159

136

 

Sales for future settlement

32

-

 


209

136

 

 

13. Creditors: amounts falling due within one year






2019

2018


£'000

£'000

Accrued expenses

112

69


112

69

 

14. Share capital






 Number of


Number of



 shares

2019

shares

2018


 000's

 £'000

 000's

 £'000

Authorised: Ordinary Shares of 25p each

30,000

7,500

30,000

7,500

20,000

5,000

20,000

5,000

 

15. Capital reserve






Capital expenditure and other gains/(losses)




2019

2018


£'000

£'000

Opening balance

19,887

17,887

(Losses)/gains on disposal of investments

(80)

3,314

Capital distributions received

-

129

Net foreign exchange gains/(losses)

43

(267)

Research costs

(32)

(26)

Investment management fees charged to capital

(273)

(290)

Dividends paid in year

(860)

(860)

Balance at 31 March

18,685

19,887

 

 

 

 



Investments held




2019

2018


£'000

£'000

Opening balance

8,843

14,140

Movement in unrealised gains on investments

(2,581)

(5,297)

Balance at 31 March

6,262

8,843

Capital reserve

24,947

28,730

 

16. Net asset value per share




2019

2018

Net assets attributable

£45,449,000

£49,315,000

Ordinary Shares in issue

20,000,000

20,000,000

Net asset value per ordinary share

227.25p

246.58p

 

17. Financial instruments and capital disclosures

















Risk management policies and procedures








The investment objective of the Company is to achieve long-term capital growth from a managed international portfolio of securities. The preservation of capital is of primary importance to the investment objective. In pursuit of this objective, the Company may be exposed to various forms of risk, as described below.

The Board has policies on diversification of investment, gearing (bank borrowing), dividends and risk management, which it reviews in accordance with prevailing market conditions. Current policies are set out in the Strategic Report. The Company's assets are managed so as to diversify both the market risk (including price risk) and liquidity risk that occurs in any equity portfolio and the Board monitors this process (see Strategic Report).

The Board and its Investment Manager consider and review the risks inherent in managing the Company's assets which are detailed below:

 

Currency  risk

The majority of the Company's assets are denominated in a currency other than sterling.  Changes in the exchange rate between sterling and other currencies may lead to a depreciation of the value of the Company's assets as expressed in sterling and may reduce the returns to the Company from its investments and, therefore, negatively impact sterling the level of dividends paid to shareholders.

 

Currency exposure at 31 March 2019










US

HK

GB Pounds

Indian

Korean

Taiwan

Phillippine

Thai




Dollar

Dollar

Sterling

Rupee

Won

Dollar

Peso

Baht

Other

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Debtors

-

-

69

-

108

-

-

-

32

209

Cash at bank

2,962

-

142

-

-

1

-

-

24

3,129

Creditors

-

-

(112)

-

-

-

-

-

-

(112)

Foreign currency exposure on net monetary items

2,962

-

99

-

108

1

-

-

56

3,226

Equities held at fair value through profit or loss

6,865

10,625

6,467

4,372

4,179

3,141

1,927

2,508

2,139

42,223

Total net foreign currency exposure

9,827

10,625

6,566

4,372

4,287

3,142

1,927

2,508

2,195

45,449












Currency exposure at 31 March 2018










US

HK

GB Pounds

Indian

Korean

Taiwan

Phillippine

Thai




Dollar

Dollar

Sterling

Rupee

Won

Dollar

Peso

Baht

Other

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Debtors

-

-

50

3

79

-

4

-

-

136

Cash at bank

1,536

-

63

-

4

506

-

-

9

2,118

Creditors

-

-

  (69)

-

-

-

-

-

-

(69)

Foreign currency exposure on net monetary items

1,536

-

44

3

83

506

4

-

9

2,185

Equities held at fair value through profit or loss

7,817

10,719

7,568

4,919

4,878

3,790

1,917

2,740

2,782

47,130

Total net foreign currency exposure

9,353

10,719

7,612

4,922

4,961

4,296

1,921

2,740

2,791

49,315












Over the year, sterling weakened against the US dollar by 7.42% (2018: strengthened 11.90%), weakened against the Hong Kong dollar by 7.40% (2018: strengthened 13.02%), weakened against the Indian Rupee by 1.72% (2018: strengthened 12.84%), weakened against the Korean Won by 0.78% (2018: strengthened 6.25%) and weakened against the Thai baht by 5.69% (2018: strengthened 1.65%).

A 5% rise or decline of sterling against foreign currency denominated (i.e. non sterling) assets held at the year end would have decreased/increased the net asset value by £1,944,000 or 4.28% of net asset value (2018: £2,085,000 or 4.23% of net asset value). It is not practical to estimate the impact on the income statement since the profit and loss is the net result of all the transactions in the portfolio throughout the year.












Interest rate risk











The Company is exposed to a very low level of interest rate risk through its cash deposits with The Northern Trust Company. The Company had no borrowings at the year end (2018: nil) and therefore sensitivity analysis to changes in LIBOR are not applicable.












Equity price risk











If the fair value of the Company's investments at the year end increased/decreased by 10% then it would have the effect of £4,222,000 or 21.11 pence per Ordinary Share (2018: £4,713,000 or 23.57 pence per Ordinary Share) on the capital return.












Liquidity risk











Liquidity risk is generally not significant in normal market conditions as the majority of the Company's investments are listed on recognised stock exchanges and for the most part readily realisable securities which can be sold easily to meet funding commitments if necessary. Short-term flexibility may be achieved by the use of bank overdrafts.

Credit risk is mitigated by diversifying the counterparties through whom the Investment Manager conducts investment transactions. The credit-standing of all counterparties is reviewed periodically with limits set on amounts due from any one broker.

Cash is only held at banks and in money market funds that have been identified by the Board as reputable and of high credit quality. Northern Trust has a short-term deposit rating of P-1 with Moody's and A-1+ with S&P. No cash was held in money market funds during the years ended 31 March 2019 and 31 March 2018.

Substantially all of the assets of the Company at the year end were held by the Custodian or its sub-custodians. Bankruptcy or insolvency of the Custodian or its sub-custodians may cause the Company's rights with respect to securities held by the Custodian to be delayed or limited. The Custodian segregates the Company's assets from its own assets and only uses sub-custodians on its approved list of sub-custodians. At the year end, the Custodian held £42,223,000 (2018: £47,130,000) in respect of quoted investments.

The total credit exposure (representing current assets) of the Company at the year end as shown on the Statement of Financial Position was £3,338,000 (2018: £2,254,000).












Valuation of financial instruments









FRS 102 (see note 1) requires that the classification of financial instruments be valued by reference to the source of inputs used to derive the fair value. The Company has adopted the fair value hierarchy disclosures as set out in the March 2016 amendment to FRS 102 classifications and their descriptions are below:

Level 1











The unadjusted quoted price 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 (i.e. developed using market data) for the asset or liability, either directly or indirectly.












Level 3











Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.














The classification of the Company's investments held at fair value is detailed in the table below:















31 March 2019

31 March 2018




Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total




£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000



Investments

42,223

-

-

42,223

46,547

-

583

47,130















The investment in Silver Heritage is classified as Level 3 at the year end and is valued at nil (2018: holding in Finetex EnE).

 

The valuation techniques used by the Company are explained in the accounting policies note 1(b).

 

 

Reconciliation of the Level 3 classification is shown below:

 

 








31 March 2019

 

 









 £'000

 

 

Balance as at the beginning of the year




         583

 

 

Sales proceeds








(37)

 

 

Realised loss on investments




(546)

 

 

Balance as at 31 March








-

 

 

 

Capital management policies and procedures






 

 

The capital managed by the Company represents only the Equity Shareholders' funds of £45,449,000 (2018: £49,315,000).

 

 










 

 

The Company currently has no borrowings.

 

 










 

 

The Company's objectives, policies and procedures for managing capital are set out in the share capital section of the Directors' Report.

 

 

The use of distributable reserves is disclosed in note 20.

 

 

 

18. Guarantees, financial commitments and contingent liabilities

 

 


 

 

There were no financial commitments outstanding at the year end (2018: none).

 

 


 

 

There were no contingent liabilities outstanding at the year end (2018: none).

 

 

 

19. Related party disclosure

 

 


 

 

Blackfriars Asset Management Limited ("Blackfriars") acts as Investment Manager to the Company and provides investment management services. The fees paid to Blackfriars are disclosed in note 4 and further details of the relationship between the Company and Blackfriars are set out in note 7.

 

 


 

 

20. Distributable reserves

 

 


 

 

The Company's distributable reserves consist of realised capital reserves attributable to realised profits and revenue reserves. Dividends may be paid from either of these reserves.

 

 

 

21. Post balance sheet event

 

 


 

 

There are no post balance sheet events to be disclosed.

 

 

Alternative Performance Measures ('APMs')









Discount





The amount, expressed as a percentage, by which the share price is less than the NAV per share.





As at 31 March 2019

NAV per Ordinary Share


a


227.25

Share price(mid market)


b


205.00

Discount


(b÷a)-1


-9.79%






Ongoing charges





A measure, expressed as a percentage of average NAV, of the regular, recurring annual costs of running an investment company.





As at 31 March 2019





 £'000

Average NAV


a


45,972

Annualised expenses


b


653

Ongoing charges


b÷a


1.42%






Total return





A measure of performance that includes both income and capital returns. This takes into account capital gains and reinvestment of dividends paid out by the Company into its Ordinary Shares on the ex-dividend date.

For the year ended 31 March 2019



NAV

Share price (mid market)

Opening at 1 April 2018

a


246.58

208.00

Closing at 31 March 2019

b


227.25

205.00

Dividend adjustment factor

c


1.0532

1.0522

Adjusted closing (d = b x c)

d


239.34

215.70

Total return

(d÷a)-1


-2.94%

3.70%






 

Financial Information

This announcement does not constitute the Company's statutory accounts.  The financial information for 2019 is derived from the statutory accounts for 2019, which will be delivered to the registrar of companies.  The statutory accounts for 2018 have been delivered to the registrar of companies.  The auditors have reported on the 2019 and 2018 accounts; their reports were unqualified and did not include a statement under Section 498(2) or (3) of the Companies Act 2006.

 

Printed copies of the Annual Report and Financial Statements for the year ended 31 March 2019 will be posted to shareholders in due course and can be requested from the Registered Office of the Company. A pdf copy can be viewed or downloaded from the Investment Manager's website www.blackfriarsam.com. Neither the contents of the Investment Manager's website nor the contents of any website accessible from hyperlinks on the Investment Manager's website (or any other website) is incorporated into or forms part of this announcement.

 

The Annual Report will be submitted to the National Storage Mechanism and will shortly be available for inspection at: http://www.morningstar.co.uk/uk/NSM

 

Annual General Meeting

The Annual General Meeting of the Company will be held at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London, EC2M 7SH on 10 July 2019 at 12 noon. The notice of AGM is contained in the Annual Report for the year ended 31 March 2019.

 

 

4 June 2019

 

Secretary and registered office:

PraxisIFM Fund Services (UK) Limited

Mermaid House,

2 Puddle Dock,

London EC4V 3DB

 

For further information contact:

Anthony Lee / Ciara McKillop

PraxisIFM Fund Services (UK) Limited

Tel: 020 7653 9690

 

 

Registered in England No. 4355437

 

 

 END

 

 

 

 

 

 


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