REG - Graphite Enterprise - Interim results <Origin Href="QuoteRef">GPE.L</Origin> - Part 2
28/09/2015 07:01
- Part 2: For the preceding part double click ID:nRSb3119Aa
54.0
31 January 2014 54.2 36.4 90.6
31 January 2015 68.0 57.4 125.4
Six months to 31 July 2015 19.2 13.6 32.8
Largest new underlying investments
Investment Description Country Cost£ million
PetSmart Retailer of pet products and services USA 4.7
The Groucho Club * Operator of members' club UK 3.0
Informatica Provider of enterprise data integration and data quality software USA 0.8
Premium Credit Provider of specialty finance UK 0.8
Cerelia Manufacturer of ready-to-bake dough France 0.7
Cleanpart Provider of engineering services to semi-conductor industries Germany 0.7
Loparex Manufacturer of silicon release liners Netherlands 0.7
Hurtigruten Operator of passenger shipping Norway 0.7
Gutenberg Manufacturer of paper products and labels France 0.7
Mirion Manufacturer of radiation detection products USA 0.6
Total of 10 largest new underlying investments 13.4
* Sold by Graphite Capital in the period. The Company re-invested alongside
Alcuin Partners.
Realisations*
Financial period ending £ million % of opening portfolio
31 December 2006 92.9 53.3%
31 December 2007 112.4 54.5%
31 December 2008 25.8 12.9%
31 December 2009 14.0 7.3%
31 January 2011 19.8 8.5%
31 January 2012 92.9 26.0%
31 January 2013 74.2 19.7%
31 January 2014 118.3 28.5%
31 January 2015 142.2 32.8%
6 months to 31 July 2015 73.5 17.0%
* Excluding secondary sales of fund interests.
Largest underlying realisations
Investment Manager Year of investment Realisation type Proceeds£ million
National Fostering Agency Graphite Capital 2012 Secondary 11.9
Eurofiber Doughty Hanson 2012 Trade 4.2
Intermediate Capital Group PLC 1989 Public offering 3.4
SAFE Euromezzanine 2006 Secondary 3.3
Spire Healthcare Cinven 2007 Public offering 3.1
The Groucho Club * Graphite Capital 2006 Secondary 3.1
Celsis Harwood 2009 Trade 2.7
Healthcare Homes Bowmark 2008 Trade 2.1
Evonik Industries CVC 2008 Public offering 1.7
Atos PAI Partners 2008 Public offering 1.6
Total of 10 realisations 37.1
* Sold by Graphite Capital in the period. The Company re-invested alongside
Alcuin Partners.
Commitments analysis
Commitments at 31 July 2015 Original commitment1£ million Outstanding commitment£ million Average drawdown percentage % of commitments
Funds in investment period 299.0 198.2 33.7% 79.7%
Funds post investment period 520.0 50.5 90.3% 20.3%
Total 819.0 248.7 69.6% 100.0%
1 Original commitments are translated at 31 July 2015 exchange rates
Commitments at 31 July 2015 - remaining investment period % of commitments
4-5 years 16.7%
3-4 years 50.1%
2-3 years 5.4%
1-2 years 5.1%
<1 year 2.4%
Investment period complete 20.3%
Total 100.0%
Movement in outstanding commitments in the six months to 31 July 2015 £ million
Opening 234.0
Drawdowns (19.0)
New primary commitments 34.6
New commitments arising through secondary purchases 4.9
Currency (8.5)
Other 2.7
Closing 248.7
New commitments during the six months to 31 July 2015
Fund Strategy Geography £m
Primary commitments
ICG Europe Fund VI Mezzanine Europe 10.6
Fourth Alcuin Fund Small buy-outs UK 9.0
Harwood Private Equity IV Small buy-outs UK 7.5
Hollyport Secondary Opportunities V Secondary portfolio Global 7.5
Total primary commitments 34.6
Commitments arising from secondary purchases
BC European Capital IX Large buy-outs Europe 4.9
Total new commitments 39.5
CURRENCY EXPOSURE
31 July 2015£ million 31 July 2015% 31 January 2015£ million 31 January 2015%
Portfolio*
- Sterling 213.2 51.8% 230.1 53.3%
- Euro 109.3 26.6% 119.7 27.7%
- US dollar 59.1 14.4% 54.9 12.7%
- Other European 28.2 6.8% 25.1 5.8%
- Other 1.7 0.4% 2.1 0.5%
Total 411.5 100.0% 431.9 100.0%
* Currency exposure is calculated using the location of the underlying
portfolio companies' headquarters.
31 July 2015£ million 31 July 2015% 31 January 2015£ million 31 January 2015%
Outstanding commitments
- Sterling 112.8 45.4% 91.8 39.2%
- Euro 128.8 51.8% 135.0 57.7%
- US dollar 5.9 2.4% 6.1 2.6%
- Other European 1.2 0.4% 1.1 0.5%
Total 248.7 100.0% 234.0 100.0%
UNAUDITED RESULTS FOR THE SIX MONTHS TO 31 JULY 2015
Consolidated Income Statement (unaudited)
Half year to 31 July 2015 Half year to 31 July 2014 Year to 31 January 2015
Revenue return Capital return Total Revenue return Capital return Total Revenue return Capital return Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment returns
Income, gains and losses on investments 7,720 12,577 20,297 10,190 8,869 19,059 13,896 22.614 36,510
Deposit interest 145 - 145 82 - 82 228 - 228
Other income - - - 241 - 241 417 - 417
Foreign exchange gains and losses - (663) (663) - (389) (389) - (1,024) (1,024)
7,865 11,914 19,779 10,513 8,480 18,993 14,541 21,590 36,131
Expenses
Investment management charges (751) (2,251) (3,002) (737) (2,213) (2,950) (1,452) (4,357) (5,809)
Other expenses (754) (569) (1,323) (770) (883) (1,653) (1,593) (1,835) (3,428)
(1,505) (2,820) (4,325) (1,507) (3,096) (4,603) (3,045) (6,192) (9,237)
Profit before taxation 6,360 9,094 15,454 9,006 5,384 14,390 11,496 15,398 26,894
Taxation (562) 562 - (989) 989 - (2,044) (2,044) -
Profit for the period 5,798 9,656 15,454 8,017 6,373 14,390 9,452 17,442 26,894
Attributable to:Equity shareholders 5,798 8,286 14,084 8,017 6,227 14,244 9,452 14,952 24,404
Non-controlling interests - 1,370 1,370 - 146 146 - 2,490 2,490
Basic and diluted earnings per share 19.4p 19.6p 33.5p
The columns headed 'Total' represent the income statement for the relevant
financial periods and the columns headed 'Revenue return' and 'Capital return'
are supplementary information. There is no Other Comprehensive Income.
Consolidated Balance Sheet (unaudited)
31 July 31 July 31 January
2015 2014 2015
£'000 £'000 £'000
Non-current assets
Investments held at fair value
- Unquoted investments 408,946 398,158 426,943
- Quoted investments 2,517 4,055 4,962
411,463 402,213 431,905
Current assets
Cash and cash equivalents 100,994 101,123 90,137
Receivables 3,275 1,588 2,246
104,269 102,711 92,383
Current liabilities
Payables 586 385 7,694
Net current assets 103,683 102,326 84,689
Total assets less current liabilities 515,146 504,539 516,594
Capital and reserves
Called up share capital 7,292 7,292 7,292
Capital redemption reserve 2,112 2,112 2,112
Share premium 12,936 12,936 12,936
Capital reserve 467,705 454,764 463,489
Revenue reserve 15,624 19,600 21,035
Equity attributable to equity holders 505,669 496,704 506,864
Non-controlling interests 9,477 7,835 9,730
Total equity 515,146 504,539 516,594
Net asset value per share (basic and diluted) 700.3p 681.2p 695.2p
Consolidated Cash Flow Statement (unaudited)
Half year to Half year to Year to
31 July 31 July 31 January
2015 2014 2015
£'000 £'000 £'000
Operating activities
Sale of portfolio investments 65,723 93,269 149,413
Purchase of portfolio investments (38,878) (53,315) (119,180)
Short term loan to portfolio investments (1,138) - -
Interest income received from portfolio investments 5,399 6,438 8,324
Dividend income received from portfolio investments 2,180 3,412 5,141
Other income received 145 322 644
Investment management charges paid (2,975) (3,076) (5,815)
Taxation paid - (22) -
Other expenses paid (604) (480) (977)
Net cash inflow from operating activities 29,852 46,548 37,550
Financing activities
Investments by non-controlling interests - 118 357
Distributions to non-controlling interests (1,623) (1,344) (2,032)
Credit facility fee (1,431) (747) (1,651)
Purchase of treasury shares (4,070) - -
Equity dividends paid (11,209) (11,302) (11,302)
Net cash outflow from financing activities (18,333) (13,275) (14,628)
Net increase in cash and cash equivalents 11,519 33,273 22,922
Cash and cash equivalents at beginning of period 90,137 68,239 68,239
Net increase in cash and cash equivalents 11,519 33,273 22,922
Effect of changes in foreign exchange rates (662) (389) (1,024)
Cash and cash equivalents at end of period 100,994 101,123 90,137
Consolidated Statement of Changes in Equity (unaudited)
Share Capital redemption reserve Share Realised capital reserve Unrealised capital reserve Revenue reserve Total shareholders' equity Non-controlling interests Total equity
capital premium
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months to31 July 2015
Opening balance at 7,292 2,112 12,936 369,565 93,924 21,035 506,864 9,730 516,594
1 February 2015
Profit attributable to equity shareholders - - - (331) 8,617 5,798 14,084 - 14,084
Profit attributable to non-controlling interests - - - - - - - 1,370 1,370
Profit for the period and total comprehensive income - - - (331) 8,617 5,798 14,084 1,370 15,454
Transfer on disposal of investments - - - 18,932 (18,932) - - - -
Dividends to equity shareholders - - - - - (11,209) (11,209) - (11,209)
Purchase of treasury shares - - - (4,070) - - (4,070) - (4,070)
Distributions to non-controlling interests - - - - - - - (1,623) (1,623)
Closing balanceat 31 July 2015 7,292 2,112 12,936 384,096 83,609 15,624 505,669 9,477 515,146
Share Capital redemption reserve Share Realised capital reserve Unrealised capital reserve Revenue reserve Total shareholders' equity Non-controlling interests Total equity
capital premium
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months to31 July 2014
Opening balance at 7,292 2,112 12,936 351,415 97,122 22,885 493,762 8,915 502,677
1 February 2014
Profit attributable to - - - 1,409 4,818 8,017 14,244 - 14,244
equity shareholders
Profit attributable to - - - - - - - 146 146
non-controlling interests
Profit for the period and - - - 1,409 4,818 8,017 14,244 146 14,390
total comprehensive
income
Transfer on disposal of - - - 12,477 (12,477) - - - -
investments
Dividends to equity - - - - - (11,302) (11,302) - (11,302)
shareholders
Contributions by non - - - - - - - 118 118
-controlling interests
Distributions to non - - - - - - - (1,344) (1,344)
-controlling interests
Closing balanceat 31 July 7,292 2,112 12,936 365,301 89,463 19,600 496,704 7,835 504,539
2014
Share Capital redemption reserve Share Realised capital reserve Unrealised capital reserve Revenue reserve Total shareholders' equity Non-controlling interests Total equity
capital premium
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Year to31 January 2015
Opening balance at 7,292 2,112 12,936 351,415 97,122 22,885 493,762 8,915 502,677
1 February 2014
Profit attributable to - - - 2,913 12,039 9,452 24,404 - 24,404
equity shareholders
Profitattributable to non - - - - - - - 2,490 2,490
-controlling interests
Profit for the year and - - - 2,913 12,039 9,452 24,404 2,490 26,894
total comprehensive
income
Transfer on disposal of - - - 15,237 (15,237) - - - -
investments
Dividends to equity - - - - - (11,302) (11,302) - (11,302)
shareholders
Contributions by non - - - - - - - 357 357
-controlling interests
Distributions to non - - - - - - - (2,032) (2,032)
-controlling interests
Closing balanceat 31 7,292 2,112 12,936 369,565 93,924 21,035 506,864 9,730 516,594
January 2015
NOTES TO THE INTERIM
REPORT (unaudited)
1 GENERAL INFORMATION
Graphite Enterprise Trust
PLC (the "Parent
Company") and its
subsidiaries (together
"Graphite Enterprise" or
the "Company") are
registered in England and
Wales and domiciled in
England. The registered
office is Berkeley Square
House, Berkeley Square,
London W1J 6BQ. The
Company's objective is to
provide shareholders with
long term capital growth
through investment in
unquoted companies,
mostly through private
equity funds but also
directly. This report was
approved for issue by the
Board of Directors on 25
September 2015. 2
UNAUDITED INTERIM REPORT
This financial report
does not comprise
statutory accounts within
the meaning of section
434 of the Companies Act
2006. Statutory accounts
for the year to 31
January 2015 were
approved by the Board of
Directors on 24 April
2015 and delivered to the
Registrar of Companies.
The report of the
auditors on those
accounts was unqualified,
did not contain an
emphasis of matter
paragraph and did not
contain any statements
under section 498(2) or
(3) of the Companies Act
2006. This financial
report has not been
audited. 3 BASIS OF
PREPARATION The financial
report for the six months
ended 31 July 2015,
comprising the Condensed
Consolidated Interim
Financial Statement, has
been prepared in
accordance with the
Disclosure and
Transparency Rules of the
Financial Conduct
Authority and with IAS
34, 'Interim financial
reporting' as adopted by
the European Union. This
financial report should
be read in conjunction
with the annual financial
statements for the year
to 31 January 2015, which
have been prepared in
accordance with IFRSs as
adopted by the European
Union. The accounting
policies applied are
consistent with those of
the annual financial
statements for the year
to 31 January 2015, as
described in those annual
financial statements.
Taxes on income in the
interim periods are
accrued using the tax
rate that would be
applicable to expected
total annual earnings.
INVESTMENTS All
investments are
designated upon initial
recognition as held at
fair value through profit
or loss (described in
these financial
statements as investments
held at fair value) and
are measured at
subsequent reporting
dates at fair value.
Changes in the value of
all investments held at
fair value, which include
returns on those
investments such as
dividends and interest,
are recognised in the
income statement and are
allocated to the revenue
column or the capital
column in accordance with
the Statement of
Recommended Practice for
investment trusts issued
by the Association of
Investment Companies in
November 2014. UNQUOTED
INVESTMENTS Fair value
for unquoted investments
is established by using
various valuation
techniques. Funds and co
-investments are valued
at the underlying
investment manager's
valuation where this is
consistent with the
requirement to use fair
value. Where this is not
the case adjustments are
made or alternative
methods are used as
appropriate. The most
common reason for
adjustments is to take
account of events
occurring after the date
of the manager's
valuation, such as
realisations. The fair
value of direct unquoted
investments is calculated
in accordance with the
International Private
Equity and Venture
Capital Valuation
("IPEV") Guidelines. The
primary valuation
methodology used is an
earnings multiple
methodology, with other
methodologies used where
they are more
appropriate. QUOTED
INVESTMENTS Quoted
investments are held at
the last traded bid price
on the balance sheet
date. When a purchase or
sale is made under
contract, the terms of
which require delivery
within the timeframe of
the relevant market, the
contract is reflected on
the trade date. CURRENT
ASSET INVESTMENTS HELD AT
FAIR VALUE Current asset
investments may include
investments in fixed
income funds or
instruments. These are
valued based on the
redemption price as at
the balance sheet date,
which is based on the
value of the underlying
investments. ASSOCIATES
Investments which fall
within the definition of
an associate under IAS 28
(Investments in
associates) are accounted
for as investments held
at fair value through
profit or loss, as
permitted by that
standard. IAS 28 requires
certain disclosures to be
made about associates,
including summary
historical financial
information, even where
these associates have
been accounted for in
accordance with IAS 39
and held at fair value.
Graphite Enterprise has a
small number of
investments which fall
within the definition of
an associate, all of
which are held at fair
value. The disclosures
required by IAS 28 have
not been made. It is
considered that, in the
context of the investment
portfolio, such
information would not be
useful to users of the
accounts. Information is
considered useful if it
helps users assess the
net asset value of the
Company or the future
growth therein. Many
factors are taken into
account in determining
the fair value of
individual investments,
of which historical
financial information is
only one. Taken alone,
this information would
not be useful in making
such an assessment and
would be misleading in
some instances. 4
RECEIVABLES The Company
has access to committed
bank facilities, which
are undrawn. The set up
costs in relation to
these were capitalised
and are recognised over
the lives of the
facilities on a straight
line basis. At 31 July
2015, £1,192,800 of bank
facility costs are
included within
receivables. Of this,
£430,850 is expected to
be amortised in less than
one year. 5 DIVIDENDS
Half year to31 July
2015£'000 Half year to31
July 2014£'000 Year to31
January 2015£'000 Half
year to 31 July 2015:
15.5p per share (Half
year to 31 July 2014 and
year to 31 January 2015:
15.5p per share) 11,209
11,302 11,302 6 CALLED
UP SHARE CAPTIAL At 31
July 2015, 72,913,000
shares had been
allocated, called up and
fully paid. Of this
total, the Company held
705,833 shares in
treasury (31 July 2014
and 31 January 2015: nil)
leaving 72,207,167 in
issue. 7
EARNINGS PER SHARE Half
year to31 July 2015 Half
year to31 July 2014 Year
to31 January 2015 Revenue
return per ordinary share
8.0p 11.0p 13.0p
Capital return per
ordinary share 11.4p
8.6p 20.5p Earnings per
ordinary share (basic and
diluted) 19.4p 19.6p
33.5p Weighted average
number of shares
72,602,027
72,913,000
72,913,000 The
earnings per share
figures are based on the
weighted average numbers
of shares set out above.
8 FAIR VALUES ESTIMATION
IFRS 7 requires
disclosure of fair value
measurements of financial
instruments categorised
according to the
following fair value
measurement hierarchy: •
Quoted prices
(unadjusted) in active
markets for identical
assets or liabilities
(level 1). • Inputs other
than quoted prices
included within level 1
that are observable for
the asset or liability,
either directly (that is,
as prices) or indirectly
(that is, derived from
prices) (level 2). •
Inputs for the asset or
liability that are not
based on observable
market data (that is,
unobservable inputs)
(level 3). All private
equity and quoted
investments are valued at
fair value in accordance
with IAS 39. The
Company's unquoted
investments are all
classified as Level 3
investments. Fair value
for unquoted investments
is established by using
various valuation
techniques. Funds are
valued at the underlying
investment manager's
valuation where this is
consistent with the
requirement to use fair
value. Where this is not
the case adjustments are
made or alternative
methods are used as
appropriate. The most
common reason for
adjustments is to take
account of events
occurring after the date
of the manager's
valuation, such as
realisations. The fair
value of direct unquoted
investments is calculated
in accordance with the
International Private
Equity and Venture
Capital Valuation
("IPEV") Guidelines
issued in December 2012.
The primary valuation
methodology used is an
earnings multiple
methodology, with other
methodologies used where
they are more
appropriate. The fair
value of the Company's
unlisted investments is
sensitive to changes in
the assumed earnings
multiples. An increase in
the earnings multiple
would lead to an increase
in the fair value of the
investment portfolio and
a decrease in the
earnings multiple would
lead to a decrease in the
fair value. The realised
and unrealised gains and
losses have been
recognised in Income,
gains and losses on
investments in the
Consolidated Income
Statement. The following
table presents the
changes in level 3
instruments for the six
months to 31 July 2015.
Unquoted investments
(indirect) at fair value
through profit or loss
Unquoted
investments(direct) at
fair value through profit
or loss Total Group £'000
£'000 £'000 Opening
balance 341,520 85,423
426,943 Additions 26,252
6,481 32,733 Disposals
(62,648) (7,438) (70,086)
Gains and losses
recognised in profit or
loss 14,104 5,252 19,356
Closing balance 319,228
89,718 408,946 Total
gains for the period
included in income
statement for assets held
at the end of the
reporting period 14,104
5,252 19,356 The
following tables present
the assets that are
measured at fair value.
The Company did not have
any financial liabilities
measured at fair value at
these dates. 31 July
2015 Level 1 Level 2
Level 3 £'000 £'000 £'000
Investments held at fair
value Unquoted
investments - indirect -
- 319,228 Unquoted
investments - direct - -
89,718 Quoted investments
- direct 2,517 - - Total
investments held at fair
value 2,517 - 408,946 31
January 2015 Level 1
Level 2 Level 3 £'000
£'000 £'000 Investments
held at fair value
Unquoted investments -
indirect - - 341,520
Unquoted investments -
direct - - 85,423 Quoted
investments - direct
4,962 - - Total
investments held at fair
value 4,962 - 426,943
year to 31 January 2015: 15.5p per share)
11,209
11,302
11,302
6 CALLED UP SHARE CAPTIAL At 31 July 2015, 72,913,000 shares had been
allocated, called up and fully paid. Of this total, the Company held 705,833
shares in treasury (31 July 2014 and 31 January 2015: nil) leaving 72,207,167
in issue. 7 EARNINGS PER SHARE
Half year to31 July 2015 Half year to31 July 2014 Year to31 January 2015
Revenue return per ordinary share 8.0p 11.0p 13.0p
Capital return per ordinary share 11.4p 8.6p 20.5p
Earnings per ordinary share (basic and diluted) 19.4p 19.6p 33.5p
Weighted average number of shares 72,602,027 72,913,000 72,913,000
The earnings per share figures are based on the weighted average numbers of
shares set out above. 8 FAIR VALUES ESTIMATION IFRS 7 requires disclosure of
fair value measurements of financial instruments categorised according to the
following fair value measurement hierarchy: • Quoted prices (unadjusted) in
active markets for identical assets or liabilities (level 1). • Inputs other
than quoted prices included within level 1 that are observable for the asset
or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (level 2). • Inputs for the asset or liability that are
not based on observable market data (that is, unobservable inputs) (level 3).
All private equity and quoted investments are valued at fair value in
accordance with IAS 39. The Company's unquoted investments are all
classified as Level 3 investments. Fair value for unquoted investments is
established by using various valuation techniques. Funds are valued at the
underlying investment manager's valuation where this is consistent with the
requirement to use fair value. Where this is not the case adjustments are made
or alternative methods are used as appropriate. The most common reason for
adjustments is to take account of events occurring after the date of the
manager's valuation, such as realisations. The fair value of direct unquoted
investments is calculated in accordance with the International Private Equity
and Venture Capital Valuation ("IPEV") Guidelines issued in December 2012. The
primary valuation methodology used is an earnings multiple methodology, with
other methodologies used where they are more appropriate. The fair value of
the Company's unlisted investments is sensitive to changes in the assumed
earnings multiples. An increase in the earnings multiple would lead to an
increase in the fair value of the investment portfolio and a decrease in the
earnings multiple would lead to a decrease in the fair value. The realised and
unrealised gains and losses have been recognised in Income, gains and losses
on investments in the Consolidated Income Statement. The following table
presents the changes in level 3 instruments for the six months to 31 July
2015.
Unquoted investments (indirect) at fair value through profit or loss Unquoted investments(direct) at fair value through profit or loss Total
Group £'000 £'000 £'000
Opening balance 341,520 85,423 426,943
Additions 26,252 6,481 32,733
Disposals (62,648) (7,438) (70,086)
Gains and losses recognised in profit or loss 14,104 5,252 19,356
Closing balance 319,228 89,718 408,946
Total gains for the period included in income statement for assets held at the end of the reporting period 14,104 5,252 19,356
The following tables present the assets that are measured at fair value. The
Company did not have any financial liabilities measured at fair value at these
dates.
31 July 2015 Level 1 Level 2 Level 3
£'000 £'000 £'000
Investments held at fair value
Unquoted investments - indirect - - 319,228
Unquoted investments - direct - - 89,718
Quoted investments - direct 2,517 - -
Total investments held at fair value 2,517 - 408,946
31 January 2015 Level 1 Level 2 Level 3
£'000 £'000 £'000
Investments held at fair value
Unquoted investments - indirect - - 341,520
Unquoted investments - direct - - 85,423
Quoted investments - direct 4,962 - -
Total investments held at fair value 4,962 - 426,943
There have been no significant transfers between levels 1, 2 and 3 for the
period ended 31 July 2015 (31 January 2015: £nil).
9 INVESTMENT MANAGEMENT CHARGES
The investment management charges set out in the table below were payable to
the Manager, Graphite Capital Management LLP, in the period. The Manager is a
related party.
Half year to31 July 2015 Half year to31 July 2014 Year to31 January 2015
£'000 £'000 £'000
Investment management fee 2,976 2,939 5,756
Irrecoverable VAT 26 11 53
3,002 2,950 5,809
The allocation of the total investment management charges was unchanged in
2015 with 75% of the total allocated to capital and 25% allocated to income.
The management fee charged by the Manager is 1.5% of the value of invested
assets and 0.5% of outstanding commitments, in both cases excluding funds
managed by Graphite Capital. No fee is charged on cash or liquid asset
balances. The amounts payable during the period are set out above.
At 31 July 2015 management fees of £97,000 were accrued (31 July 2014:
prepayment of £50,000).
The Company has borne management charges in respect of its investments in
funds managed by Graphite Capital as set out below:
Half year to 31 July 2015 Half year to 31 July 2014 Year to31 January 2015
£'000 £'000 £'000
Graphite Capital Partners VI (99) 70 150
Graphite Capital Partners VII 1 225 392
Graphite Capital Partners VIII 812 696 1,376
714 991 1,918
INTERIM MANAGEMENT REPORT AND STATEMENT OF THE DIRECTORS' RESPONSIBILITIES
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company for the second half
of the financial year are substantially the same as those disclosed in the
Report and Accounts for the year ended 31 January 2015.
Going Concern
The factors likely to affect the Company's ability to continue as a going
concern were set out in the Report and Accounts for the year ended 31 January
2015. As at 31 July, there have been no significant changes to these factors.
Having reviewed the Company's forecasts and other relevant evidence, the
Directors have a reasonable expectation that the Parent Company and the
Company have adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern
basis in preparing the half-yearly condensed financial statements.
Statement of Directors' Responsibilities
The directors confirm that this half-yearly financial report has been prepared
in accordance with IAS 34 as adopted by the European Union and that the
business review includes a fair review of the information required by DTR
4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have occurred during the first
six months and their impact on the condensed set of financial statements, and
a description of the principal risks and uncertainties for the remaining six
months of the financial year; and
- material related-party transactions in the first six months and any
material changes in the related-party transactions described in the last
annual report.
On behalf of the Board
Mark Fane, Chairman
25 September 2015
Copies of the Interim Report will be available on the Company's website (see
below) and posted in October 2015 to shareholders who have elected to receive
a paper copy. Copies may be obtained during normal business hours from the
Company's registered office thereafter.
For further information please contact:
Tim Spence / Emma Osborne
Graphite Capital
Tel: 020 7825 5300
www.graphite-enterprise.com
This information is provided by RNS
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