Henderson Opport Tst - Half-year Report
21/06/2023 15:00
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RNS Number : 4881D Henderson Opportunities Trust PLC 21 June 2023
JANUS HENDERSON FUND MANAGEMENT UK LIMITED
HENDERSON OPPORTUNITIES TRUST PLC
LEGAL ENTITY IDENTIFIER (LEI): 2138005D884NPGHFQS77
21 June 2023
HENDERSON OPPORTUNITIES TRUST PLC
(the "Company")
Unaudited results for the half year ended 30 April 2023
This announcement contains regulated information.
Investment Objective
The Company aims to achieve capital growth in excess of the FTSE All-Share
Index from a portfolio of primarily UK investments.
Performance summary
(Unaudited) (Unaudited) (Audited)
30 April 2023 30 April 2022 31 October 2022
Net Asset Value ('NAV') per share 1,228.4p 1,471.5p 1,173.7p
Share price 1,050.0p 1,237.5p 1,018.0p
Net assets £97.0m £116.2m £92.7m
Discount(1) to NAV 14.5% 15.9% 13.3%
NAV total return per share 74.8p -140.9p -424.7p
NAV total return 6.3% -8.7% -26.4%
Share price total return 4.9% -9.5% -24.7%
Revenue return per share - basic and diluted 16.1p 19.5p 40.6p
Dividends per share(2) 15.0p 14.0p 34.0p
Net gearing(3) 14.9% 15.2% 13.9%
Total Return Performance to 30 April 2023
6 Months 1 Year 3 Years 5 Years 10 Years
% % % % %
NAV(4) 6.3 -14.3 42.6 9.6 101.8
Benchmark(5) 12.5 6.0 45.2 24.2 80.7
Share price(6) 4.9 -12.6 53.3 15.1 123.2
Peer group average NAV(7) 14.4 -1.2 38.6 10.9 85.1
Sources: Morningstar Direct, Refinitiv Datastream and Janus Henderson
1. Calculated based on the NAV per ordinary share and share price at period
end
2. The dividends per ordinary share for the period 1 November 2022 to 30
April 2023 include a first interim dividend payment of 7.5p per ordinary share
payable on 23 June 2023 and a second interim dividend payment of 7.5p per
ordinary share payable on 22 September 2023. See the Chairman's Statement
and Note 3 for further details
3. Net gearing reflects the amount of borrowings (bank loans or overdrafts)
the Company has used to invest in the market less cash and investment cash
funds, as a percentage of net assets
4. NAV per ordinary share total return (including dividends reinvested)
5. FTSE All-Share Index
6. Share price total return (including dividends reinvested)
7. Association of Investment Companies ('AIC') UK All Companies Sector
(based on cumulative fair net asset value returns)
CHAIRMAN'S STATEMENT AND INTERIM MANAGEMENT REPORT
Review
The Net Asset Value total return was 6.3% over the six months while the FTSE
All-Share Index (the "Index") benchmark returned 12.5%. The Index returns were
substantially driven by large companies while small companies, and AIM stocks
in particular, generally lagged the Index advance. The Company has a greater
exposure to the AIM market than the Index. While this small company exposure
has over time added value, during periods when there is lower investor
confidence, smaller companies' share prices tend to be weaker than those of
large global stocks. The Company's results for the period therefore reflect
the level of its exposure to the AIM market. The falls in UK smaller
companies' share prices have, however, left valuations at very attractive
levels, which, in the Fund Managers' and the Board's view, will present
opportunities for the Company going forward.
At a stock level, the attribution analysis tables below show the largest
contributors and detractors. Four of the largest detractors were oil and gas
companies. These companies all suffered from oil prices having weakened from
the levels they were at at the start of the war in Ukraine and from the
windfall tax or Energy Profits Levy introduced by the UK Government. The
contributors have come from a variety of sectors and there is no particular
underlying theme.
Investment activity
Three new holdings were purchased in the period, Marshalls, Legal and General
and Hvivo These are three very different companies which are all anticipated
to grow strongly in coming years and their current valuations are undemanding.
Various holdings were also added to based on share price weakness. The largest
individual disposal was a result of the takeover of K3 Capital. The positions
in Vodafone and Haleon were sold as the Fund Managers believe that there are
better growth opportunities.
Gearing
The gearing at the period end was 14.9% (31 October 2022: 13.9%). The gearing
level reflects the Fund Managers' belief that the UK equity market currently
offers substantial value. While there was a cash balance at the period end
this was due to timing and the settlement dates for investment transactions.
Earnings and dividends
The earnings per share for the period under review were 16.1p, which compares
with 19.5p for the same period last year. Investee companies' dividends have
generally been recovering, but there are not the special dividends that were
seen last year as companies seek to preserve cash in what is considered an
uncertain economic environment.
We are pleased to declare a second interim dividend of 7.5p per ordinary share
for the financial year ending 31 October 2023. This will be payable on 22
September 2023 to shareholders registered at the close of business on 18
August 2023. The Company's shares will be quoted ex-dividend on 17 August
2023. The first interim dividend for the financial year ending 31 October
2023 was declared on 8 March 2023 and will be paid on 23 June 2023.
Your Board remains committed to the Company's progressive dividend policy and
over the last five years (to 31 October 2022) the dividend has grown by 61.9%
Economic and market conditions
The valuation of UK equities is at a very low level. A coming together of
different factors has been behind the fall in valuations. There has been a
lack of capital spend in the economy driven by caution over Brexit and
Covid-19. The pension fund industry and various other domestic investors have
abstained from buying and have been large disinvestors in UK equities over the
last ten years. Overseas buyers have been increasing holdings as domestic
holders sell, but their focus is on large global companies, leaving a lack of
capital to invest in small, domestic-facing businesses. However, the low
valuations are leading to takeover activity picking up.
The AIM market
The AIM market has materially underperformed the FTSE All-Share Index. As at
the half year end the portfolio had 48.4% in AIM stocks. In periods of
uncertainty, investors are risk averse and AIM stocks have a greater level of
risk attached to them as they are relatively immature companies. There is an
increasing focus on liquidity as investors are demanding to be able to buy and
sell the shares of a company relatively easily and again this works against
investors looking at AIM. However, the Fund Managers believe these concerns
will come to be seen to be overplayed if the next generation of successful
companies emerge from the AIM market. Companies such as ZOO Digital or Boku
are growing rapidly and becoming the established global player in their
activities. In the view of the Fund Managers, their current valuations do not
in any way reflect their prospects, the current indifference to AIM listed
companies will not last and a vibrant AIM market will return as these
successful companies become increasingly recognised. This will bring capital
to growing companies and will help reinvigorate the UK economy.
1 year FTSE All-Share and FTSE AIM
Data illustrating 1 year FTSE All-Share and FTSE AIM returns:
Date FTSE AIM return pence FTSE All-Share return pence
April 2022 100.00 100.00
May 2022 95.45 100.40
June 2022 85.71 94.16
July 2022 90.17 98.13
August 2022 86.35 95.75
September 2022 78.88 89.93
October 2022 78.86 92.63
November 2022 83.01 98.91
December 2022 81.32 97.37
January 2023 84.89 101.69
February 2023 84.07 102.85
March 2023 79.16 99.35
April 2023 81.19 102.36
Source: Bloomberg, Janus Henderson
Note: Price return, rebased to 100 at 30 April 2022
AGM
At the AGM in March this year, 24.2% of the votes cast were voted against the
resolution for the continuation of the Company (although only 26.6% of the
Company's total voting rights were cast). The Board has therefore been
consulting with shareholders, its advisers and the Fund Managers regarding the
Company's future. The Company is small in size, but while this can pose
challenges for liquidity, it should not affect its ability to deliver strong
returns for investors. The Fund Managers and the Board firmly believe that
there is a real role for the Company in continuing to do what it is doing and
that over time, the approach will create long term value for shareholders as
it has done in the past. The UK is generally out of favour and UK smaller,
domestic focused companies are being particularly harshly treated by
investors. However, at some point the pendulum will swing as the companies
that are languishing in share price terms come through with operational
growth. The Board therefore believes it is the wrong time to make any major
change to the Company's strategy. The Fund Managers will therefore remain
focused on attempting to deliver substantial capital appreciation and the
Board will continue to communicate with shareholders, consult its advisers and
engage with the Fund Managers on strategy in the run up to the next
continuation vote in 2026.
In the meantime, in order to assist monthly savers and those who reinvest
their dividends, or those who are looking to invest smaller amounts (such as
younger investors), the Board is considering proposing a share split of the
Company's ordinary shares. Any such sub-division may also (but could not be
guaranteed to) assist in improving the liquidity in, and marketability of the
Company's shares. Any such scheme would be brought forward for the approval of
shareholders at the Company's AGM in 2024, but will only be proposed if at the
relevant time the Board considers this to be in the best interests of the
Company's shareholders as a whole.
Discount
During the period the Company's discount to NAV averaged 12.5% and was 14.5%
at the period end. In comparison, the average discount across the closed ended
funds sector over the last four months was 14.9%. The Board and the Fund
Managers are continuing to monitor the discount closely and are examining all
possible options for narrowing it. Given the Company's size, it has a limited
ability to buy back its shares. It therefore remains the Board's position that
if buybacks are to be considered, this will be with the aim of enhancing the
NAV for existing shareholders rather than trying to maintain the discount at
any particular level. It is the belief of the Board and the Fund Managers that
market cyclicality over time, the AIM market returning to favour, an increase
in investor confidence in the UK and strong performance by the Company are all
likely to be key factors in narrowing the discount.
Outlook
The UK economy is growing but at a very slow pace. The consumer, in spite of
the cost of living crisis, has not shown the weakness in spending that some
anticipated. Unemployment is low and companies overall are responding well to
the demanding circumstances they face. At the same time, many good quality
companies that have sound long term plans are trading on very undemanding
valuations. The Fund Managers and the Board therefore believe this is a time
of substantial opportunity for a fund with the Company's investment approach.
Wendy Colquhoun James Henderson and Laura Foll
Chairman Fund Managers
Principal Risks and Uncertainties
The principal risks and uncertainties associated with the Company's business
can be divided into the following main areas:
• investment activity and strategy;
• financial instruments and the management of risk;
• operational and cyber;
• accounting, legal and regulatory; and
• failure of Janus Henderson.
Detailed information on these risks is given in the Strategic Report and in
the Notes to the Financial Statements in the Company's Annual Report for the
year ended 31 October 2022.
In the view of the Board, these principal risks and uncertainties at the
year-end remain and are as applicable to the remaining six months of the
financial year as they were to the six months under review.
Directors' Responsibility Statement
The Directors (listed in note 12) confirm that, to the best of their
knowledge:
a) the condensed financial statements for the half year ended 30 April 2023 have
been prepared in accordance with Financial Reporting Standard 104 Interim
Financial Reporting and give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company;
b) this interim management report and condensed financial statements include a
fair review of the information required by the Disclosure Guidance and
Transparency Rule 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year); and
c) this interim management report includes a fair review of the information
required by the Disclosure Guidance and Transparency Rule 4.2.8R (disclosure
of related party transactions and changes therein).
On behalf of the Board
Wendy Colquhoun
Chairman
Investment portfolio at 30 April 2023
Company Valuation % of portfolio
£'000
Barclays 3,916 3.5
Vertu Motors¹ 3,177 2.9
NatWest 3,162 2.8
Boku¹ 3,068 2.8
ZOO Digital¹ 3,056 2.7
Next Fifteen Group¹ 2,944 2.6
Jersey Oil & Gas¹ 2,878 2.6
Springfield Properties¹ 2,754 2.5
Serica Energy¹ 2,730 2.5
Rio Tinto 2,524 2.3
10 largest 30,209 27.2
HSBC 2,471 2.2
Standard Chartered 2,419 2.2
Tracsis¹ 2,418 2.2
Anglo American 2,384 2.1
Oxford Instruments 1,921 1.7
Tesco 1,897 1.7
IQGeo¹ 1,852 1.7
Morgan Advanced Materials 1,836 1.7
SigmaRoc¹ 1,807 1.6
Redcentric¹ 1,789 1.6
20 largest 51,003 45.9
Van Elle¹ 1,776 1.6
Rolls-Royce 1,648 1.5
Flutter Entertainment 1,591 1.4
Redde Northgate 1,565 1.4
Aviva 1,527 1.4
CML Microsystems 1,515 1.4
Prudential 1,514 1.4
Cohort¹ 1,468 1.3
Flowtech¹ 1,437 1.3
Ricardo 1,380 1.2
30 largest 66,424 59.8
Surface Transforms¹ 1,366 1.2
BT Group 1,350 1.2
GlaxoSmithKline 1,326 1.2
Marks & Spencer 1,315 1.2
Babcock 1,190 1.1
RWS Holdings¹ 1,184 1.1
Halfords Group 1,156 1.0
Deltic Energy¹ 1,150 1.0
M&G 1,127 1.0
Marshalls 1,052 0.9
40 largest 78,640 70.7
Workspace 1,052 1.0
Finsbury Food Group¹ 1,045 0.9
STV 1,041 0.9
Senior 1,036 0.9
Marks Electrical¹ 1,026 0.9
Vanquis Banking Group 1,010 0.9
IntegraFin Holdings 1,000 0.9
Johnson Matthey 982 0.9
Reckitt Benckiser 965 0.9
XP Power 946 0.9
50 largest 88,743 79.8
Direct Line Insurance 944 0.8
Hollywood Bowl 935 0.8
AFC Energy¹ 916 0.8
Ilika¹ 893 0.8
Premier Miton Group¹ 891 0.8
Mondi 885 0.8
International Personal Finance 878 0.8
Legal & General 878 0.8
Kier Group 857 0.8
Jubilee Metals¹ 819 0.8
60 largest 97,639 87.8
Jadestone Energy¹ 799 0.7
Renold¹ 795 0.7
IP Group 777 0.7
The Gym Group 763 0.7
Deltex Medical¹ 733 0.7
GB Group¹ 732 0.7
Oxford Nanopore Technology 724 0.7
Hvivo¹ 700 0.6
Ceres Power¹ 699 0.6
Tribal Group¹ 646 0.6
70 largest 105,007 94.5
24 remaining (excluding cash and investments written down to zero) 6,161 5.5
Total 111,168 100.0
(1) Quoted on the Alternative Investment Market ('AIM')
Attribution analysis to 30 April 2023
The table below sets out the top five contributors and top five detractors to
NAV:
Top five contributors Total return (%) Contribution to NAV (%)
HSBC 32.36 0.75
Rolls-Royce 94.67 0.66
Vertu Motors 28.09 0.58
IQGeo 40.97 0.55
Oxford Instruments 44.56 0.50
Top five detractors Total return (%) Contribution to NAV (%)
Tribal Group -41.50 -0.42
Jersey Oil & Gas -16.24 -0.42
Orcadian Energy -76.85 -0.50
Serica Energy -20.77 -0.57
Deltic Energy -45.72 -0.83
Source: Janus Henderson
Portfolio by index at 30 April 2023
As a percentage of the portfolio excluding cash
Index FTSE All-Share Index % Portfolio
%
FTSE 100 83.99 29.57
FTSE 250 12.86 13.22
FTSE SmallCap 2.33 7.56
FTSE AIM 0.10 48.35
Other 0.72 1.30
Total 100.0 100.0
Source: Factset
Portfolio by market capitalisation at 30 April 2023
As a percentage of the portfolio excluding cash
Index FTSE All-Share Index % Portfolio
%
Greater than £2b 90.28 31.68
£1b - £2b 4.90 3.43
£500m - £1b 2.49 15.73
£200m - £500m 1.89 16.53
£100m - £200m 0.40 13.90
£50m - £100m 0.03 12.13
Less than £50m -- 6.12
Other 0.01 0.48
Total 100.0 100.0
Source: Factset
CONDENSED INCOME STATEMENT
(Unaudited) (Unaudited) (Audited)
Half Year ended Half Year ended Year ended
30 April 2023 30 April 2022 31 October 2022
Revenue return £'000 Capital return £'000 Total Revenue return £'000 Capital return £'000 Total return £'000 Revenue return £'000 Capital return £'000 Total return £'000
return £'000
Gains/(losses) from investments held at fair value through profit or loss - 5,083 5,083 - (12,350) (12,350) - (36,112) (36,112)
Investment income 1,616 - 1,616 1,773 - 1,773 3,715 - 3,715
held at fair value through
profit or loss
Interest receivable 108 - 108 109 - 109 205 - 205
and other income
Gross revenue and 1,724 5,083 6,807 1,882 (12,350) (10,468) 3,920 (36,112) (32,192)
capital gains/(losses)
(78) (183) (261) (99) (230) (329) (173) (404) (577)
Management fee (note 2)
Administrative expenses (257) - (257) (199) - (199) (433) - (433)
1,389 4,900 6,289 1,584 (12,580) (10,996) 3,314 (36,516) (33,202)
Net return/(loss) before finance costs and taxation
Finance costs (115) (269) (384) (40) (93) (133) (104) (241) (345)
1,274 4,631 5,905 1,544 (12,673) (11,129) 3,210 (36,757) (33,547)
Net return/(loss) before taxation
Taxation on net return - - - (1) - (1) (1) - (1)
1,274 4,631 5,905 1,543 (12,673) (11,130) 3,209 (36,757) (33,548)
Net return/(loss) after taxation
16.13p 58.63p 74.76p 19.54p (160.45p) (140.91p) 40.63p (465.37p) (424.74p)
Return/(loss) per ordinary share - basic and diluted (note 4)
The total columns of this statement represent the Income Statement of the
Company, prepared in accordance with FRS 104.
All revenue and capital items in the above statement derive from continuing
operations. The revenue and capital return columns are supplementary to this
and are prepared under guidance published by the Association of Investment
Companies. The Company had no recognised gains or losses other than those
disclosed in the Income Statement and Statement of Changes in Equity. The
accompanying notes are an integral part of the condensed financial statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
(Unaudited)
Half Year ended 30 April 2023
Called up share capital £'000 Share premium account £'000 Capital redemption reserve £'000 Other capital reserves Total shareholders' funds
£'000 Revenue reserve £'000 £'000
At 1 November 2022 2,000 14,838 2,431 70,739 2,693 92,701
Ordinary dividends paid - - - - (1,580) (1,580)
Net return after taxation - - - 4,631 1,274 5,905
At 30 April 2023 2,000 14,838 2,431 75,370 2,387 97,026
(Unaudited)
Half Year ended 30 April 2022
Called up share capital £'000 Share premium account £'000 Capital redemption reserve £'000 Other capital reserves Total shareholders' funds
£'000 Revenue reserve £'000 £'000
At 1 November 2021 2,000 14,838 2,431 107,496 1,732 128,497
Ordinary dividends paid - - - - (1,145) (1,145)
Return of unclaimed dividends - - - - 4 4
Net (loss)/return after taxation - - - (12,673) 1,543 (11,130)
At 30 April 2022 2,000 14,838 2,431 94,823 2,134 116,226
(Audited)
Year ended 31 October 2022
Called up share capital £'000 Share premium account £'000 Capital redemption reserve £'000 Other capital reserves Total shareholders' funds
£'000 Revenue reserve £'000 £'000
At 1 November 2021 2,000 14,838 2,431 107,496 1,732 128,497
Ordinary dividends paid - - - - (2,251) (2,251)
Refund of unclaimed dividends over 12 years old - - - - 3 3
Net return after taxation - - - (36,757) 3,209 (33,548)
At 31 October 2022 2,000 14,838 2,431 70,739 2,693 92,701
The accompanying notes are an integral part of these condensed financial
statements.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
Half year ended 30 April 2023 Half year ended Year ended
£'000 30 April 2022 31 October 2022 £'000
£'000
Fixed assets
Investments held at fair value through profit or loss
Listed at market value 58,619 62,981 50,786
Quoted on AIM at market value 52,009 70,286 54,392
Unlisted at market value 540 492 517
111,168 133,759 105,695
Current assets
Investments held at fair value through profit or loss 2 2 2
Debtors 591 619 216
Cash at bank and in hand 2,710 1,829 1,219
3,303 2,450 1,437
Creditors: amounts falling due within one year
Bank loans (17,127) (19,492) (14,106)
Other creditors (318) (491) (325)
Net current liabilities (14,142) (17,533) (12,994)
Net assets 97,026 116,226 92,701
Capital and reserves
Called up share capital (note 6) 2,000 2,000 2,000
Share premium account 14,838 14,838 14,838
Capital redemption reserve 2,431 2,431 2,431
Other capital reserves 75,370 94,823 70,739
Revenue reserves 2,387 2,134 2,693
97,026 116,226 92,701
Total shareholders' funds
Net asset value per ordinary share - basic and diluted (note 7) 1,228.4p 1,471.5p 1,173.7p
The accompanying notes are an integral part of these condensed financial
statements.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Half Year ended Half Year ended Year ended
30 April 2023 30 April 2022 31 October 2022
£'000 £'000 £'000
Cash flows from operating activities
Net return/(loss) before taxation 5,905 (11,129) (33,547)
Add back: finance costs 384 133 345
Add: (gains)/losses on investments held at fair value through profit or loss (5,083) 12,350 36,112
Increase in debtors (375) (530) (127)
Decrease in creditors (39) (1,195) (1,361)
Net cash inflow/(outflow) from operating activities 792 (371) 1,422
Cash flows from investing activities
Purchase of investments (6,420) (11,340) (15,811)
Sale of investments 6,030 12,336 20,625
Proceeds from capital dividends - - 483
Net cash (outflow)/inflow from investing activities (390) 996 5,297
Cash flows from financing activities
Equity dividends paid (net of refund or unclaimed distributions and reclaimed (1,580) (1,141) (2,248)
distributions)
Net loans drawn down/(repaid) 3,021 1,125 (4,261)
Interest paid (352) (140) (351)
Net cash inflow/(outflow) from financing activities 1,089 (156) (6,860)
Net increase/(decrease) in cash and cash equivalents 1,491 469 (141)
Cash and cash equivalents at start of year 1,219 1,360 1,360
Cash and cash equivalents at end of period 2,710 1,829 1,219
Comprising:
Cash at bank 2,710 1,829 1,219
The accompanying notes are an integral part of these condensed financial
statements.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1 Accounting policies - basis of preparation
The condensed set of financial statements has been prepared in accordance with
FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting
Standard applicable in the UK and Republic of Ireland, and the Statement of
Recommended Practice for "Financial Statements of Investment Trust Companies
and Venture Capital Trusts", which was updated by the Association of
Investment Companies in July 2022.
For the period under review, the Company's accounting policies have not varied
from those described in the annual report for the year ended 31 October 2022.
These financial statements have been neither audited nor reviewed by the
Company's auditor.
2 Management and performance fees
Janus Henderson Fund Management UK Limited is appointed to act as the
Company's Alternative Investment Fund Manager. Janus Henderson Fund Management
UK Limited delegates investment management services to Janus Henderson
Investors UK Limited. References to Janus Henderson or the Manager within
these results refer to the services provided by both Janus Henderson Fund
Management UK Limited and Janus Henderson Investors UK Limited.
Management and performance fees are charged in accordance with the terms of
the management agreement and provided for when due. The base management fee
is charged at 0.55% of net assets per annum payable quarterly at a rate of
0.1375% based on net assets at the end of the previous quarter. The management
agreement also provides for the payment of a performance fee, calculated as
15% of any outperformance of the NAV over the benchmark, subject to a limit on
the total management and performance fees payable in any one year of 1.5% of
the average net assets (calculated quarterly) during the year. No performance
fee will be paid if either the share price or net asset value is lower than
their value at the preceding financial year end. Any underperformance relative
to the benchmark, or any unrewarded outperformance (for example, as a result
of the cap), will be carried forward and set against any outperformance or
underperformance respectively in subsequent years. A performance fee of £nil
has been accrued as at 30 April 2023 (30 April 2022 and 31 October 2022:
£nil).
The Company allocates 70% of its management fees and finance costs to the
capital return of the Income Statement with the remaining 30% being allocated
to the revenue return. Performance fees payable are allocated 100% to the
capital return.
3 Dividends
On 8 March 2023, the Board declared a first interim dividend of 7.5p (2022:
7.0p) per ordinary share, to be paid out of revenue on 23 June 2023 to
shareholders on the register of the Company at the close of business on 19 May
2023. The cost of this dividend will be £592,000 (2022: £553,000).
The Board has declared a second interim dividend of 7.5p (2022: 7.0p) per
ordinary share, to be paid out of revenue on 22 September 2023 to shareholders
on the register of the Company at the close of business on 18 August 2023. The
ex-dividend date will be 17 August 2023. Based on the number of ordinary
shares in issue on 20 June 2023, the cost of this dividend will be £592,000
(2022: £553,000).
No provision has been made for the interim dividends in these condensed
financial statements. The third interim dividend of 7.0p per ordinary share,
paid on 16 December 2022 and the final dividend of 13.0p per ordinary share,
paid on 24 March 2023 in respect of the year ended 31 October 2022, have been
recognised as a distribution in this period.
4 Return/(loss) per ordinary share - basic and diluted
The return/(loss) per ordinary share is based on the following figures:
(Unaudited) (Unaudited) (Audited)
Half Year ended Half Year ended Year ended
30 April 2023 30 April 2022 31 October 2022
£'000 £'000 £'000
Revenue return 1,274 1,543 3,209
Capital return/(loss) 4,631 (12,673) (36,757)
Total return/(loss) 5,905 (11,130) (33,548)
Weighted average number of ordinary shares in issue for the period 7,898,375 7,898,375 7,898,375
Revenue return per ordinary share 16.13p 19.54p 40.63p
Capital return/(loss)per ordinary share 58.63p (160.45p) (465.37p)
Total return/(loss) per ordinary share 74.76p (140.91p) (424.74p)
The Company has no securities in issue that could dilute the return per
ordinary share. Therefore, the basic and diluted returns per share are the
same.
5 Investments held at fair value through profit or loss
The table below analyses fair value measurements for investments held at fair
value through profit or loss. These fair value measurements are categorised
into different levels in the fair value hierarchy based on the valuation
techniques used and are defined as follows under FRS 102:
Level 1: valued using quoted prices in active markets for identical assets
Level 2: valued by reference to valuation techniques using observable inputs other than
quoted prices included in Level 1
Level 3: valued by reference to valuation techniques using inputs that are not based on
observable market data
Investments held at fair value through profit or loss at 30 April 2023 Level 1 Level 2 Level 3 Total
(unaudited)
£'000 £'000 £'000 £'000
Investments 110,628 - 540 111,168
Current asset investments 2 - - 2
Total 110,630 - 540 111,170
Investments held at fair value through profit or loss at 30 April 2022 Level 1 Level 2 Level 3 Total
(unaudited)
£'000 £'000 £'000 £'000
Investments 133,267 - 492 133,759
Current asset investments 2 - - 2
Total 133,269 - 492 133,761
Investments held at fair value through profit or loss at 31 October 2022 Level 1 Level 2 Level 3 Total
(audited)
£'000 £'000 £'000 £'000
Investments 105,178 - 517 105,695
Current asset investments 2 - - 2
Total 105,180 - 517 105,697
There have been no transfers between levels of the fair value hierarchy during
the period.
The valuation techniques used by the Company are explained in the accounting
policies note 1(d) in the Company's Annual Report for the year ended 31
October 2021.
6 Called-up share capital
During the half year ended 30 April 2023, no shares were issued or repurchased
(half year ended 30 April 2022 and year ended 31 October 2022: no shares
issued or repurchased). At 30 April 2023 there were 8,000,858 ordinary shares
of 25p each in issue (30 April 2022 and 31 October 2022: 8,000,858) of which
102,483 were held in treasury (30 April 2022 and 31 October 2022: 102,483
shares held in treasury) resulting in 7,898,375 shares being entitled to a
dividend (30 April 2022 and 31 October 2022: 7,898,375).
7 Net asset value per ordinary share - basic and diluted
Net asset value per ordinary share is based on the net assets attributable to
the ordinary shares of £97,026,000 (30 April 2022: £116,226,000; 31 October
2022: £92,701,000) and on the 7,898,375 ordinary shares of 25p each in issue
at 30 April 2023 (half year ended 30 April 2022 and year ended 31 October
2022: 7,898,375).
8 Transaction costs
Purchase transaction costs for the half year ended 30 April 2023 were £20,000
(30 April 2022: £41,000; 31 October 2022: £61,000); these comprise mainly
stamp duty and commissions. Sale transaction costs for the half year ended 30
April 2023 were £1,000 (30 April 2022: £6,000; 31 October 2022: £9,000);
these comprise mainly commissions.
9 Related party transactions
The Company's transactions with related parties in the period under review
were with the Directors and the Manager. There were no material transactions
between the Company and its Directors during the half year other than amounts
paid to them in respect of expenses and remuneration for which there are no
outstanding amounts payable at the half year period end. Directors'
shareholdings as at 31 October 2022 are disclosed in the Annual Report.
In relation to the provision of services by the Manager, other than fees
payable by the Company in the ordinary course of business and the facilitation
of marketing activities with third parties, there were no material
transactions with the Manager affecting the financial position of the Company
during the half year period.
10 Going concern
The Company's Articles of Association require that at the Annual General
Meeting of the Company held in 2008, and every third year thereafter, an
ordinary resolution be put to approve the continuation of the Company. The
next triennial continuation resolution will be put to the Annual General
Meeting in 2026. The assets of the Company consist almost entirely of
securities that are listed (or quoted on AIM) and are readily realisable.
Having assessed these factors and the principal risks the Directors consider
it appropriate to adopt the going concern basis of accounting in preparing the
financial statements. Accordingly, the Directors believe that the Company
has adequate resources to continue in operational existence for at least
twelve months from the date of approval of the financial statements.
Investments held at fair value through profit or loss at 30 April 2023 Level 1 Level 2 Level 3 Total
(unaudited)
£'000 £'000 £'000 £'000
Investments 110,628 - 540 111,168
Current asset investments 2 - - 2
Total 110,630 - 540 111,170
Investments held at fair value through profit or loss at 30 April 2022 Level 1 Level 2 Level 3 Total
(unaudited)
£'000 £'000 £'000 £'000
Investments 133,267 - 492 133,759
Current asset investments 2 - - 2
Total 133,269 - 492 133,761
Investments held at fair value through profit or loss at 31 October 2022 Level 1 Level 2 Level 3 Total
(audited)
£'000 £'000 £'000 £'000
Investments 105,178 - 517 105,695
Current asset investments 2 - - 2
Total 105,180 - 517 105,697
There have been no transfers between levels of the fair value hierarchy during
the period.
The valuation techniques used by the Company are explained in the accounting
policies note 1(d) in the Company's Annual Report for the year ended 31
October 2021.
6
Called-up share capital
During the half year ended 30 April 2023, no shares were issued or repurchased
(half year ended 30 April 2022 and year ended 31 October 2022: no shares
issued or repurchased). At 30 April 2023 there were 8,000,858 ordinary shares
of 25p each in issue (30 April 2022 and 31 October 2022: 8,000,858) of which
102,483 were held in treasury (30 April 2022 and 31 October 2022: 102,483
shares held in treasury) resulting in 7,898,375 shares being entitled to a
dividend (30 April 2022 and 31 October 2022: 7,898,375).
7
Net asset value per ordinary share - basic and diluted
Net asset value per ordinary share is based on the net assets attributable to
the ordinary shares of £97,026,000 (30 April 2022: £116,226,000; 31 October
2022: £92,701,000) and on the 7,898,375 ordinary shares of 25p each in issue
at 30 April 2023 (half year ended 30 April 2022 and year ended 31 October
2022: 7,898,375).
8
Transaction costs
Purchase transaction costs for the half year ended 30 April 2023 were £20,000
(30 April 2022: £41,000; 31 October 2022: £61,000); these comprise mainly
stamp duty and commissions. Sale transaction costs for the half year ended 30
April 2023 were £1,000 (30 April 2022: £6,000; 31 October 2022: £9,000);
these comprise mainly commissions.
9
Related party transactions
The Company's transactions with related parties in the period under review
were with the Directors and the Manager. There were no material transactions
between the Company and its Directors during the half year other than amounts
paid to them in respect of expenses and remuneration for which there are no
outstanding amounts payable at the half year period end. Directors'
shareholdings as at 31 October 2022 are disclosed in the Annual Report.
In relation to the provision of services by the Manager, other than fees
payable by the Company in the ordinary course of business and the facilitation
of marketing activities with third parties, there were no material
transactions with the Manager affecting the financial position of the Company
during the half year period.
10
Going concern
The Company's Articles of Association require that at the Annual General
Meeting of the Company held in 2008, and every third year thereafter, an
ordinary resolution be put to approve the continuation of the Company. The
next triennial continuation resolution will be put to the Annual General
Meeting in 2026. The assets of the Company consist almost entirely of
securities that are listed (or quoted on AIM) and are readily realisable.
Having assessed these factors and the principal risks the Directors consider
it appropriate to adopt the going concern basis of accounting in preparing the
financial statements. Accordingly, the Directors believe that the Company
has adequate resources to continue in operational existence for at least
twelve months from the date of approval of the financial statements.
11 Net debt reconciliation
Cash and cash equivalents Bank loans and overdraft repayable within one year Total
£'000 £'000 £'000
Net debt as at 31 October 2022 1,219 (14,106) (12,887)
Cash flows 1,491 (3,021) (1,530)
Net debt as at 30 April 2023 2,710 (17,127) (14,417)
Cash and cash equivalents Bank loans and overdraft repayable within one year Total
£'000 £'000 £'000
Net debt as at 31 October 2021 1,360 (18,367) (17,007)
Cash flows 469 (1,125) (656)
Net debt as at 30 April 2022 1,829 (19,492) (17,663)
Cash and cash equivalents Bank loans and overdraft repayable within one year Total
£'000 £'000 £'000
Net debt as at 31 October 2021 1,360 (18,367) (17,007)
Cash flows (141) 4,261 4,120
Net debt as at 31 October 2022 1,219 (14,106) (12,887)
12 General information
Company Status:
Henderson Opportunities Trust plc is registered in England and Wales (No.
01940906), has its registered office at 201 Bishopsgate, London EC2M 3AE and
is listed on the London Stock Exchange.
SEDOL/ISIN: 0853657/GB0008536574
London Stock Exchange (TIDM) Code: HOT
Global Intermediary Identification Number (GIIN): LVAHJH.99999.SL.826
Legal Entity Identifier (LEI): 2138005D884NPGHFQS77
Directors and Corporate Secretary:
The Directors of the Company are Wendy Colquhoun (Chairman), Frances Daley
(Audit and Risk Committee Chairman), Davina Curling and Harry Morgan. The
Corporate Secretary is Janus Henderson Secretarial Services UK Limited,
represented by Melanie Stoner (Fellow of the Chartered Governance Institute).
Website:
Details of the Company's share price and net asset value, together with
general information about the Company, monthly factsheets and data, copies of
announcements, reports and details of general meetings can be found at
www.hendersonopportunitiestrust.com
(http://www.hendersonopportunitiestrust.com) .
13 Comparative information
The financial information contained in the half year report does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The financial information for the half year periods ended 30 April 2023
and 30 April 2022 has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 31 October 2022 are
an extract based on the latest published accounts and do not constitute
statutory accounts for that year. Those accounts have been delivered to the
Registrar of Companies and included the Independent Auditor's Report which was
unqualified and did not contain a statement under either section 498(2) or
498(3) of the Companies Act 2006.
A glossary of terms and details of alternative performance measures can be
found in the Annual Report for the year ended 31 October 2022.
14 Half Year Report
The half year report and an abbreviated version (the 'Update') will shortly be
available on the Company's website or from the Company's registered office.
The Update will be posted to shareholders in June 2023.
12
General information
Company Status:
Henderson Opportunities Trust plc is registered in England and Wales (No.
01940906), has its registered office at 201 Bishopsgate, London EC2M 3AE and
is listed on the London Stock Exchange.
SEDOL/ISIN: 0853657/GB0008536574
London Stock Exchange (TIDM) Code: HOT
Global Intermediary Identification Number (GIIN): LVAHJH.99999.SL.826
Legal Entity Identifier (LEI): 2138005D884NPGHFQS77
Directors and Corporate Secretary:
The Directors of the Company are Wendy Colquhoun (Chairman), Frances Daley
(Audit and Risk Committee Chairman), Davina Curling and Harry Morgan. The
Corporate Secretary is Janus Henderson Secretarial Services UK Limited,
represented by Melanie Stoner (Fellow of the Chartered Governance Institute).
Website:
Details of the Company's share price and net asset value, together with
general information about the Company, monthly factsheets and data, copies of
announcements, reports and details of general meetings can be found at
www.hendersonopportunitiestrust.com
(http://www.hendersonopportunitiestrust.com) .
13
Comparative information
The financial information contained in the half year report does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The financial information for the half year periods ended 30 April 2023
and 30 April 2022 has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 31 October 2022 are
an extract based on the latest published accounts and do not constitute
statutory accounts for that year. Those accounts have been delivered to the
Registrar of Companies and included the Independent Auditor's Report which was
unqualified and did not contain a statement under either section 498(2) or
498(3) of the Companies Act 2006.
A glossary of terms and details of alternative performance measures can be
found in the Annual Report for the year ended 31 October 2022.
14
Half Year Report
The half year report and an abbreviated version (the 'Update') will shortly be
available on the Company's website or from the Company's registered office.
The Update will be posted to shareholders in June 2023.
For further information, please contact:
James Henderson Dan Howe
Fund Manager Head of Investment Trusts
Janus Henderson Investors Janus Henderson Fund Management UK Limited
Telephone: 020 7818 4370 Tel: 020 7818 4458
Wendy Colquhoun Harriet Hall
Chairman Investment Trust PR Manager
Henderson Opportunities Trust plc Janus Henderson Investors
Telephone: 020 7818 4082 Telephone: 020 7818 2919
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) are
incorporated into, or form part of, this announcement.
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. END IR BXGDLIUDDGXB
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