Henderson Opport Tst - Half-year Report
20/06/2024 07:00
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RNS Number : 1167T Henderson Opportunities Trust PLC 20 June 2024
JANUS HENDERSON FUND MANAGEMENT UK LIMITED
HENDERSON OPPORTUNITIES TRUST PLC
LEGAL ENTITY IDENTIFIER (LEI): 2138005D884NPGHFQS77
20 June 2024
HENDERSON OPPORTUNITIES TRUST PLC
(the "Company")
Unaudited results for the half year ended 30 April 2024
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 2024 30 April 2023 31 October 2023
Net Asset Value ('NAV') per share(1) 241.1p 245.7p 207.0p
Share price(1) 212.5p 210.0p 173.0p
Net assets £95.2m £97.0m £81.8m
Discount(2) to NAV 11.9% 14.5% 16.4%
NAV total return per share 38.1p 15.0p (20.7p)
NAV total return 18.6% 6.3% -9.3%
Share price total return 25.5% 4.9% -12.2%
Revenue return per share - basic and diluted 2.8p 3.2p 6.7p
Dividends per share(1, 3) 3.0p 3.0p 7.1p
Net gearing(4) 9.5% 14.9% 9.6%
Total Return Performance to 30 April 2024
6 Months 1 Year 3 Years 5 Years 10 Years
% % % % %
NAV(5) 18.6 1.2 -20.1 10.2 57.4
Benchmark(6) 14.2 7.5 23.9 30.1 75.8
Share price(7) 25.5 5.0 -27.2 21.2 47.9
Peer group average NAV(8) 19.5 7.8 -0.9 23.4 67.6
Sources: Morningstar Direct and Janus Henderson
1. Comparative figures for the periods ended 30 April 2023 and 31 October
2023 have been restated due to the sub-division of each ordinary share of 25p
into five ordinary shares of 5p each on 11 March 2024
2. Calculated based on the NAV per ordinary share and share price at period
end
3. The dividends per ordinary share for the period 1 November 2023 to 30
April 2024 include a first interim dividend payment of 1.5p per ordinary share
of 5p each payable on 20 June 2024 and a second interim dividend payment of
1.5p per ordinary share of 5p each payable on 20 September 2024. See the
Chairman's Statement and Note 3 for further details
4. 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
5. NAV per ordinary share total return (including dividends reinvested)
6. FTSE All-Share Index
7. Share price total return (including dividends reinvested)
8. AIC UK All Companies Sector simple average
CHAIRMAN'S STATEMENT AND INTERIM MANAGEMENT REPORT
Performance review and market backdrop
In the six months to the end of April the Company's net asset value (NAV) on a
total return basis rose 18.6%, outperforming its FTSE All-Share Index
benchmark which rose 14.2%. The Company's share price delivered a 25.5%
return. This was a welcome recovery in both absolute and relative terms,
although we recognise that on a long-term basis performance remains
disappointing and therefore we need this trajectory to continue.
The Board and the Fund Managers have been continuing their programme of
constructive engagement on performance and strategy and the Board is confident
that the Fund Managers will continue to take advantage of the current
investment opportunities across the UK market. The Board is also very focused
on the interests of shareholders, and the recent five for one share split
should help monthly savers and those who reinvest their dividends.
Over the last six months the drivers of the Company's NAV growth were a
recovery in smaller company share prices from oversold levels in the autumn as
well as 'recovery' shares such as Rolls-Royce that continued to perform well.
In the case of smaller companies, some of the best performers within this
six-month period had been weak in the preceding six months (for example
Springfield Properties and Next 15 Group). The Fund Managers had found the
previous share price weakness difficult to justify on company fundamentals,
and in many cases shares have returned to still below long run average
valuation levels.
From the table below it can be seen that, with the exception of the FTSE
Small-Cap Index (where some detractors such as Vanquis fell), the Company's
portfolio outperformed the indices it invests in during the six months
(comparing the 3rd and 5th column in the table below).
Index: Company weighting (%) Company total return (%) FTSE FTSE
All-Share All-Share
Index weighting (%) Index total return (%)
FTSE 100 33.3 28.3 84.5 13.5
FTSE 250 17.9 23.0 13.5 18.8
FTSE SmallCap 7.4 -5.9 2.0 15.9
FTSE AIM All-Share 39.9 13.7 - 12.9
Company and Benchmark weights are as at the half year end, 30 April 2024.
The Company weights do not add up to 100 as a small portion of the portfolio
sits outside of major UK indices.
Viewed from an alternative perspective, stock selection was positive during
the period as was the contribution from gearing. Size allocation of the
portfolio (in other words having more than the FTSE All-Share benchmark in
smaller companies) was approximately neutral, having been materially negative
in the previous financial year:
Data illustrating Attribution Returns (%):
Benchmark 14.2
Size Allocation -0.4
Stock Selection 3.8
Gearing 1.4
Fees -0.5
Company 18.6
Source: Janus Henderson Investors, Factset
Turning to stock specifics, the larger companies held performed well during
the period driven by 'recovery' shares, such as Rolls-Royce and Marks &
Spencer, that continue to make operational progress under new management
teams. Banking shares Barclays and NatWest also performed well, as margins are
benefitting from a higher interest rate environment while loan losses remain
low. The detractors can broadly be grouped into two areas - energy companies
(particularly those with assets in the North Sea) and early-stage businesses.
Energy company share prices have been impacted by two headwinds - fiscal
uncertainty in the North Sea, which is delaying investment decisions, as well
as ongoing energy price 'normalisation' since Russia's invasion of Ukraine.
Early-stage companies have in some cases had operational issues with scaling
up manufacturing (Surface Transforms) and in some cases had external market
headwinds (Oxford Nanopore). The end market potential of these businesses
remains large, and sentiment towards the area has gone from overly optimistic
in 2020/2021 to extreme caution currently.
Top five absolute contributors
Share price total return (%) Contribution to NAV (%)
Rolls-Royce 91.8 2.6
Barclays 59.0 2.2
Springfield Properties 83.7 1.8
Next 15 Group 42.4 1.2
IQGeo 108.7 1.1
Top five absolute detractors
Share price total return (%) Contribution to NAV (%)
Surface Transforms -88.2 -1.2
Jersey Oil & Gas -27.0 -0.8
Serica Energy -20.1 -0.7
Oxford Nanopore -52.0 -0.4
Vanquis Banking Group -57.7 -0.3
Investment activity and gearing
During the period three new positions were purchased - London property owner
Shaftesbury Capital, retailer DFS Furniture and International Distribution
Services (previously Royal Mail). We also added to positions in existing
holdings such as Scottish housebuilder Springfield Properties, broadcaster STV
and earlier stage businesses including fuel cell companies Ceres Power and AFC
Energy. These were funded from sales including Hollywood Bowl (following good
performance), Legal & General (on better valuation opportunities
elsewhere) and ZOO Digital (following disappointing trading).
At the end of April gearing of 9.5% was approximately unchanged from where it
was at financial year end (9.6%).
Earnings and dividends
The earnings in the period were 2.8p, which compares to 3.2p (adjusted for the
share split) in the same period last year. The fall in earnings was partly a
result of the sales during the period such as Legal & General and
Hollywood Bowl. More broadly we are seeing an increasing number of smaller
companies opt for share buybacks (rather than special dividends in
particular). In the Fund Managers' view this reflects a frustration among
company boards at the valuation levels many companies are trading at, as well
as a growing portion of US shareholders on company registers who tend to
favour buybacks over dividends.
Discount
The discount during the period varied from 10.3% to 17.8%, ending the period
at 11.9%. This compares to a 11.7% average discount for the AIC UK All
Companies Sector at period end and a 16.6% discount for the AIC UK Smaller
Companies Sector at period end.
Outlook
In the short term, there will be some uncertainty ahead of the UK's General
Election in July. Looking further ahead however, it is likely that UK interest
rates will be reduced in the coming months. The benefit to the economy could
be a return of confidence. Corporate capital spend is more likely to be
actioned by companies as they become more confident that the recession is
behind them. For the consumer, the period of restraint could ease and retail
spend could pick up from depressed levels in some categories. On top of this,
there is a natural replacement cycle picking up in the economy as major
projects which had been put on hold come through. The overall effect could be
for UK economic growth to gain traction over and above what is in economists'
forecasts. The increased activity could feed through to a steeper than
expected pick-up in corporate earnings, as the cost base of many companies is
very controlled as a result of the disciplines learned in a testing period.
The increased profits would be well received by investors and the very low
valuations can improve. This is an exciting cocktail for improved investor
returns. We believe the portfolio is positioned for the better outlook.
Wendy Colquhoun James Henderson and Laura Foll
Chairman Fund Managers
19 June 2024
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;
• shareholder base and voting on platforms;
• 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 2023.
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 2024 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
19 June 2024
Investment portfolio at 30 April 2024
Company Valuation % of portfolio
£'000
Barclays 4,966 4.8
Rolls-Royce 4,474 4.3
Springfield Properties¹ 3,217 3.1
Boku¹ 3,142 3.0
HSBC 2,995 2.9
Rio Tinto 2,735 2.6
Standard Chartered 2,655 2.6
Anglo American 2,568 2.5
Next 15¹ 2,541 2.5
Cohort¹ 2,306 2.2
10 largest 31,599 30.5
Tracsis¹ 2,210 2.1
NatWest 2,146 2.1
Serica Energy¹ 2,139 2.1
Marks & Spencer 2,046 2.0
Shaftesbury Capital 2,021 1.9
Marshalls 2,014 1.9
Vertu Motors¹ 2,010 1.9
Redcentric¹ 2,004 1.9
Tesco 1,999 1.9
Morgan Advanced Materials 1,994 1.9
20 largest 52,182 50.2
SigmaRoc¹ 1,956 1.9
Babcock 1,903 1.8
Jersey Oil & Gas¹ 1,897 1.8
IQGeo¹ 1,777 1.7
Aviva 1,681 1.6
Oxford Instruments 1,573 1.5
AFC Energy¹ 1,546 1.5
GlaxoSmithKline 1,539 1.5
Kier 1,501 1.4
Flutter Entertainment 1,493 1.4
30 largest 69,048 66.3
Renold¹ 1,458 1.4
STV 1,404 1.4
Van Elle¹ 1,353 1.3
Workspace 1,220 1.2
Redde Northgate 1,142 1.1
M&G 1,106 1.1
IntegraFin Holdings 1,103 1.1
CML Microsystems¹ 1,101 1.1
GB Group¹ 1,079 1.0
Ricardo 1,042 1.0
40 largest 81,056 78.0
Senior 1,039 1.0
Direct Line Insurance 1,021 1.0
International Personal Finance 936 0.9
The Gym Group 919 0.9
Halfords Group 905 0.9
Creo Medical¹ 889 0.9
Johnson Matthey 878 0.8
Prudential 876 0.8
BT 872 0.8
Marks Electrical¹ 811 0.8
50 largest 90,202 86.8
Premier Miton Group¹ 802 0.8
RWS Holdings¹ 801 0.8
Hvivo¹ 798 0.8
ITM Power¹ 749 0.7
Ceres Power 712 0.7
International Distributions Services 677 0.7
IP Group 662 0.6
Deltic Energy¹ 657 0.6
International Consolidated Airlines 657 0.6
Jubilee Metals¹ 618 0.6
60 largest 97,335 93.7
DFS Furniture 580 0.6
Accsys Technologies¹ 564 0.5
Ilika¹ 551 0.5
XP Power 544 0.5
Oxford Nanopore Technology 533 0.5
Westminister¹ 532 0.5
Oxford Science Enterprises(2) 483 0.5
Jadestone Energy¹ 430 0.4
Reach 421 0.4
Tribal¹ 359 0.3
70 largest 102,332 98.4
13 remaining (excluding cash and investments written down to zero) 1,662 1.6
Total 103,994 100.0
(1) Quoted on the Alternative Investment Market ('AIM')
(2) Unlisted
Portfolio by market capitalisation at 30 April 2024
as a percentage of the portfolio excluding cash
Index FTSE All-Share Index % Portfolio
%
Greater than £2b 90.5 39.5
£1b - £2b 5.1 1.5
£500m - £1b 2.3 19.4
£200m - £500m 1.6 18.3
£100m - £200m 0.5 13.0
£50m - £100m 0.0 1.9
Less than £50m 0.0 5.9
Other 0.0 0.5
Total 100.0 100.0
Source: Factset
CONDENSED INCOME STATEMENT
(Unaudited) (Unaudited) (Audited)
Half Year ended Half Year ended Year ended
30 April 2024 30 April 2023 31 October 2023
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 through profit or loss - 14,384 14,384 - 5,083 5,083 - (9,892) (9,892)
Investment income held at fair value through profit or loss 1,374 - 1,374 1,616 - 1,616 3,269 - 3,269
Interest receivable and other income 134 - 134 108 - 108 242 - 242
Gross revenue and capital gains/(losses) 1,508 14,384 15,892 1,724 5,083 6,807 3,511 (9,892) (6,381)
(77) (178) (255) (78) (183) (261) (151) (351) (502)
Management fee (note 2)
Administrative expenses (222) - (222) (257) - (257) (466) - (466)
Net return/(loss) before finance costs and taxation 1,209 14,206 15,415 1,389 4,900 6,289 2,894 (10,243) (7,349)
Finance costs (102) (239) (341) (115) (269) (384) (245) (572) (817)
Net return/(loss) before taxation 1,107 13,967 15,074 1,274 4,631 5,905 2,649 (10,815) (8,166)
Taxation on net return - - - - - - (6) - (6)
Net return/(loss) after taxation 1,107 13,967 15,074 1,274 4,631 5,905 2,643 (10,815) (8,172)
Return/(loss) per ordinary share - basic and diluted (note 4)* 2.80p 35.37p 38.17p 3.23p 11.73p 14.95p 6.69p (27.38p) (20.69p)
*Comparative figures for the periods ended 30 April 2023 and 31 October 2023
have been restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024.
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 2024
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 2023 2,000 14,838 2,431 59,924 2,572 81,765
Costs relating to sub-division of shares - - - (17) - (17)
Ordinary dividends paid - - - - (1,619) (1,619)
Return of unclaimed dividends - - - - 2 2
Net return after taxation - - - 13,967 1,107 15,074
At 30 April 2024 2,000 14,838 2,431 73,874 2,062 95,205
(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
(Audited)
Year ended 31 October 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 - - - - (2,764) (2,764)
Net (loss)/return after taxation - - - (10,815) 2,643 (8,172)
At 31 October 2023 2,000 14,838 2,431 59,924 2,572 81,765
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 2024 Half year ended Year ended
£'000 30 April 2023 31 October 2023 £'000
£'000
Investments held at fair value through profit or loss
Listed at market value 61,055 58,619 50,270
Quoted on AIM at market value 42,456 52,009 38,703
Unlisted at market value 483 540 513
103,994 111,168 89,486
Current assets
Investments held at fair value through profit or loss 2 2 2
Debtors 648 591 487
Cash at bank and in hand 2,179 2,710 2,315
2,829 3,303 2,804
Creditors: amounts falling due within one year
Bank loans (11,211) (17,127) (10,169)
Other creditors (407) (318) (356)
Net current liabilities (8,789) (14,142) (7,721)
Net assets 95,205 97,026 81,765
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 73,874 75,370 59,924
Revenue reserves 2,062 2,387 2,572
95,205 97,026 81,765
Total shareholders' funds
Net asset value per ordinary share - basic and diluted (note 7)* 241.1p 245.7p 207.0p
*Comparative figures for the periods ended 30 April 2023 and 31 October 2023
have been restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024
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 2024 30 April 2023 31 October 2023
£'000 £'000 £'000
Cash flows from operating activities
Net return/(loss) before taxation 15,074 5,905 (8,166)
Add back: finance costs 341 384 817
Add: (gains)/losses on investments held at fair value through profit or loss (14,384) (5,083) 9,892
Increase in debtors (264) (375) (81)
Decrease in creditors (54) (39) (12)
Net cash inflow from operating activities 713 792 2,450
Cash flows from investing activities
Purchase of investments (7,168) (6,420) (7,527)
Sale of investments 7,273 6,030 13,647
Net cash inflow/(outflow) from investing activities 105 (390) 6,120
Cash flows from financing activities
Equity dividends paid (1,617) (1,580) (2,764)
Costs relating to sub-division of shares (17) - -
Net loans drawn down/(repaid) 1,042 3,021 (3,937)
Interest paid (362) (352) (773)
Net cash (outflow)/inflow from financing activities (954) 1,089 (7,474)
Net (decrease)/increase in cash and cash equivalents (136) 1,491 1,096
Cash and cash equivalents at start of year 2,315 1,219 1,219
Cash and cash equivalents at end of period 2,179 2,710 2,315
Comprising:
Cash at bank 2,179 2,710 2,315
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 2023.
A number of comparative figures for the periods ended 30 April 2023 and 31
October 2023 that are included within these results have been restated due to
the sub-division of each ordinary share of 25p into five ordinary shares of 5p
each on 11 March 2024.
These financial statements have been neither audited nor reviewed by the
Company's auditor.
2 Management fee
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 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. With effect from 20 October
2023 the board agreed to remove the performance fee. No performance fee was
paid in the period to 30 April 2023 and 31 October 2023.
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.
3 Dividends
On 7 March 2024, the Board declared a first interim dividend of 1.5p* (2023:
1.5p*) per ordinary share of 5p each, to be paid out of revenue on 20 June
2024 to shareholders on the register of the Company at the close of business
on 17 May 2024. The cost of this dividend will be £592,000 (2023: £592,000).
The Board has declared a second interim dividend of 1.5p (2023: 1.5p*) per
ordinary share of 5p each, to be paid out of revenue on 20 September 2024 to
shareholders on the register of the Company at the close of business on 16
August 2024. The ex-dividend date will be 15 August 2024. Based on the number
of ordinary shares in issue on 19 June 2024, the cost of this dividend will be
£592,000 (2023: £592,000).
No provision has been made for the interim dividends in these condensed
financial statements. The third interim dividend of 1.5p* per ordinary share,
paid on 15 December 2023 and the final dividend of 2.6p* per ordinary share,
paid on 22 March 2024 in respect of the year ended 31 October 2023, have been
recognised as a distribution in this period.
*Dividend rates have been restated due to the sub-division of each ordinary
share of 25p into five ordinary shares of 5p each on 11 March 2024.
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 2024 30 April 2023 31 October 2023
£'000 £'000 £'000
Revenue return 1,107 1,274 2,643
Capital return/(loss) 13,967 4,631 (10,815)
Total return/(loss) 15,074 5,905 (8,172)
Weighted average number of ordinary shares in issue for the period* 39,491,875 39,491,875 39,491,875
Revenue return per ordinary share* 2.80p 3.23p 6.69p
Capital return/(loss)per ordinary share* 35.37p 11.73p (27.38p)
Total return/(loss) per ordinary share* 38.17p 14.96p (20.69p)
*Comparative figures for the periods ended 30 April 2023 and 31 October 2023
have been restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024.
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 2024 Level 1 Level 2 Level 3 Total
(unaudited)
£'000 £'000 £'000 £'000
Investments 103,511 - 483 103,994
Current asset investments 2 - - 2
Total 103,513 - 483 103,996
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 31 October 2023 Level 1 Level 2 Level 3 Total
(audited)
£'000 £'000 £'000 £'000
Investments 88,973 - 513 89,486
Current asset investments 2 - - 2
Total 88,975 - 513 89,488
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 2023.
6 Called-up share capital
During the half year ended 30 April 2024, no shares were issued or repurchased
(half year ended 30 April 2023 and year ended 31 October 2023: no shares
issued or repurchased). At 30 April 2024 there were 40,004,290 ordinary shares
of 5p each in issue (30 April 2023 and 31 October 2023: 40,004,290*) of which
512,415 were held in treasury (30 April 2023 and 31 October 2023: 512,415*
shares held in treasury) resulting in 39,491,875 shares being entitled to a
dividend (30 April 2023 and 31 October 2023: 39,491,875*).
*Comparative figures for the periods ended 30 April 2023 and 31 October 2023
have been restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024
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 £95,205,000 (30 April 2023: £97,026,000; 31 October
2023: £81,765,000) and on the 39,491,875 ordinary shares of 5p each in issue
at 30 April 2024 (half year ended 30 April 2023 and year ended 31 October
2023: 39,491,875*).
*Comparative figures for the periods ended 30 April 2023 and 31 October 2023
have been restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024
8 Transaction costs
Purchase transaction costs for the half year ended 30 April 20243 were
£29,000 (30 April 2023: £20,000; 31 October 2023: £24,000); these comprise
mainly stamp duty and commissions. Sale transaction costs for the half year
ended 30 April 2024 were £3,000 (30 April 2023: £1,000; 31 October 2023:
£5,000); 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 2023 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 2024 Level 1 Level 2 Level 3 Total
(unaudited)
£'000 £'000 £'000 £'000
Investments 103,511 - 483 103,994
Current asset investments 2 - - 2
Total 103,513 - 483 103,996
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 31 October 2023 Level 1 Level 2 Level 3 Total
(audited)
£'000 £'000 £'000 £'000
Investments 88,973 - 513 89,486
Current asset investments 2 - - 2
Total 88,975 - 513 89,488
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 2023.
6
Called-up share capital
During the half year ended 30 April 2024, no shares were issued or repurchased
(half year ended 30 April 2023 and year ended 31 October 2023: no shares
issued or repurchased). At 30 April 2024 there were 40,004,290 ordinary shares
of 5p each in issue (30 April 2023 and 31 October 2023: 40,004,290*) of which
512,415 were held in treasury (30 April 2023 and 31 October 2023: 512,415*
shares held in treasury) resulting in 39,491,875 shares being entitled to a
dividend (30 April 2023 and 31 October 2023: 39,491,875*).
*Comparative figures for the periods ended 30 April 2023 and 31 October 2023
have been restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024
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 £95,205,000 (30 April 2023: £97,026,000; 31 October
2023: £81,765,000) and on the 39,491,875 ordinary shares of 5p each in issue
at 30 April 2024 (half year ended 30 April 2023 and year ended 31 October
2023: 39,491,875*).
*Comparative figures for the periods ended 30 April 2023 and 31 October 2023
have been restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024
8
Transaction costs
Purchase transaction costs for the half year ended 30 April 20243 were
£29,000 (30 April 2023: £20,000; 31 October 2023: £24,000); these comprise
mainly stamp duty and commissions. Sale transaction costs for the half year
ended 30 April 2024 were £3,000 (30 April 2023: £1,000; 31 October 2023:
£5,000); 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 2023 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 2023 2,315 (10,169) (7,854)
Cash flows (136) (1,042) (1,178)
Net debt as at 30 April 2024 2,179 (11,211) (9,032)
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 2022 1,219 (14,106) (12,887)
Cash flows 1,096 3,937 5,033
Net debt as at 31 October 2023 2,315 (10,169) (7,854)
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: GB00BSHRGN4 / GB00BSHRGN41
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 2024
and 30 April 2023 has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 31 October 2023 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 2023.
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 2024.
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: GB00BSHRGN4 / GB00BSHRGN41
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 2024
and 30 April 2023 has not been audited or reviewed by the Company's auditors.
The figures and financial information for the year ended 31 October 2023 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 2023.
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 2024.
For further information, please contact:
James Henderson Laura Foll
Fund Manager Fund Manager
Janus Henderson Investors Henderson Opportunities Trust plc
Telephone: 020 7818 4370 Telephone: 020 7818 6364
Wendy Colquhoun Harriet Hall
Chairman PR Director, Investment Trusts
Henderson Opportunities Trust plc Janus Henderson Investors
Telephone: 020 7818 4082 Telephone: 020 7818 2919
Dan Howe
Head of Investment Trusts
Janus Henderson Fund Management UK Limited
Tel: 020 7818 4458
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 BLGDLXGBDGSC
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