REG - Livermore Inv. Group - Annual Financial Report <Origin Href="QuoteRef">AUIV.L</Origin> - Part 3
24/05/2016 07:06
- Part 3: For the preceding part double click ID:nRSX0648Zb
stock exchanges.
· Real estate entities relate to investments in real estate projects.
· Other investments are investments not otherwise included in the categories above.
7. Fair value measurements of financial assets and liabilities
The following table presents financial assets measured at fair value in the consolidated statement of financial position in
accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based
on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value
hierarchy has the following levels:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;
- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly; and
- Level 3: unobservable inputs for the asset or liability.
The level within which the financial asset is classified is determined based on the lowest level of significant input to
the fair value measurement.
Valuation of financial assets and liabilities
· Fixed Income Investments, and Public Equity Investments are valued per their closing market prices on quoted
exchanges, or as quoted by market maker. Investments in open warehouse facilities that have not yet been converted to CLOs,
are valued based on an adjusted net asset valuation.
The Group values the CLOs based on the valuation reports provided by market makers. CLOs are typically valued by market
makers using discounted cash flow models. The key assumptions for cash flow projections include default and recovery rates,
prepayment rates and reinvestment assumptions on the underlying portfolios (typically senior secured loans) of the CLOs.
Default and recovery rates: The amount and timing of defaults in the underlying collateral and the amount and timing of
recovery upon a default affect are key to the future cash flows a CLO will distribute to the CLO equity tranche. All else
equal, higher default rates and lower recovery rates typically lead to lower cash flows. Conversely, lower default rates
and higher recoveries lead to higher cash flows.
Prepayment rates: Senior loans can be pre-paid by borrowers. CLOs that are within their reinvestment period may, subject to
certain conditions, reinvest such prepayments into other loans which may have different spreads and maturities. CLOs that
are beyond their reinvestment period typically pay down their senior liabilities from proceeds of such pre-payments.
Therefore the rate at which the underlying collateral prepays impacts the future cash flows that the CLO may generate.
Reinvestment assumptions: A CLO within its reinvestment period may reinvest proceeds from loan maturities, prepayments, and
recoveries into purchasing additional loans. The reinvestment assumptions define the characteristics of the loans that a
CLO may reinvest in. These assumptions include the spreads, maturities, and prices of such loans. Reinvestment into loans
with higher spreads and lower prices will lead to higher cash flows. Reinvestment into loans with lower spreads will
typically lead to lower cash flows.
Discount rate: The discount rate indicates the yield that market participants expect to receive and is used to discount the
projected future cash flows. Higher yield expectations or discount rates lead to lower prices and lower discount rates lead
to higher prices for CLOs.
· Private Equities are valued using market valuation techniques as determined by the Directors, mainly on the basis of
discounted cash flow techniques or valuations reported by third-party managers of such investments.
· Financial and Minority holdings are valued using market valuation techniques as determined by the Directors, mainly
on the basis of discounted cash flow techniques or valuations reported by third-party managers of such investments.
· Hedge Funds are valued per reports provided by the funds on a periodic basis, and if traded, per their closing bid
market prices on quoted exchanges, or as quoted by market maker.
· Real Estates entities are valued by independent qualified property valuers with substantial relevant experience on
such investments. Underlying property values are determined based on their estimated market values.
· Derivative instruments are valued at fair value as provided by counter parties (banks) of the derivative agreement.
Financial assets and financial liabilities measured at fair value in the consolidated statement of financial position are
grouped into the fair value hierarchy as follows:
2015US$000 2015US$000 2015US$000 2015US $000 2014US$000 2014US$000 2014US$000 2014US $000
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets
Fixed income investments 1,634 65,946 5,021 72,601 1,623 82,217 - 83,840
Private equities - - 5,625 5,625 - - 8,221 8,221
Financial and minority holdings - - 7,223 7,223 - - 9,266 9,266
Public equity investments 3,232 - - 3,232 3,208 - - 3,208
Hedge funds - 1,064 - 1,064 - 1,135 - 1,135
Real estate entities - - 1,203 1,203 - - 1,476 1,476
Investment in associate and joint venture - - - - - - - -
Other investments - - - - 299 - - 299
Total return swaps - - - - - - 1,125 1,125
------ ------ ------ ------ ------ ------ ------ ------
4,866 67,010 19,072 90,948 5,130 83,352 20,088 108,570
------ ------ ------ ------ ------ ------ ------ ------
Liabilities
Forward contract - 217 - 217 - - - -
------ ------ ------ ------ ------ ------ ------ ------
- 217 - 217 - - - -
------ ------ ------ ------ ------ ------ ------ ------
The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous
reporting period.
No financial assets or liabilities have been transferred between levels.
Financial assets within level 3 can be reconciled from beginning to ending balances as follows:
Available-for-sale At fair value through profit or loss Derivative financial instruments
Financial and minority holdings Private equities Other investments Real estate Private equities Fixed Incomeinvestments Total return swap Total
US $000 US $000 US $000 US $000 US $000 US $000 US $000 US $000
As at 1 January 2014 9,068 9,081 2 1,588 569 - - 20,308
Purchases - 323 - - - - - 323
(Losses) / gains recognised in: -
-Profit or loss - (1,470) - 68 (239) - 1,125 (516)
-Other comprehensive income 198 (43) (2) - - - - 153
Exchange difference - - - (180) - - - (180)
------ ------ ------ ------ ------ ------ ------ ------
As at 1 January 2015 9,266 7,891 - 1,476 330 - 1,125 20,088
Purchases - - - - - 5,000 - 5,000
Settlement - (59) - - - - (1,332) (1,391)
(Losses) / gains recognised in:
-Profit or loss (2,043) (2,134) - 104 - 21 207 (3,845)
-Other comprehensive income - (403) - - - - - (403)
Exchange difference - - - (377) - - - (377)
------ ------ ------ ------ ------ ------ ------ ------
As at 31 December 2015 7,223 5,295 - 1,203 330 5,021 - 19,072
------ ------ ------ ------ ------ ------ ------ ------
The above gains and losses recognised can be allocated as follows:
Available-for-sale At fair value through profit or loss Derivative financial instruments
Financial and minority holdings Private equities Other investments Real estate Private equities Fixed Incomeinvestments Total return swap Total
2014 US $000 US $000 US $000 US $000 US $000 US $000 US $000 US $000
Profit or loss
-Financial assets held at year-end - (1,470) - 68 (239) - 1,125 (516)
------ ------ ------ ------ ------ ------ ------ ------
- (1,470) - 68 (239) - 1,125 (516)
------ ------ ------ ------ ------ ------ ------ ------
Other comprehensive income
-Financial assets held at year-end 198 (43) (2) - - - - 153
------ ------ ------ ------ ------ ------ ------ ------
198 (43) (2) - - - - 153
------ ------ ------ ------ ------ ------ ------ ------
Total gains / (losses) for 2014 198 (1,513) (2) 68 (239) - 1,125 (363)
------ ------ ------ ------ ------ ------ ------ ------
2015 US $000 US $000 US $000 US $000 US $000 US $000 US $000 US $000
Profit or loss
-Financial assets held at year-end (2,043) (2,134) - 104 - 21 - (4,052)
-Financial assets not held at year-end - - - - - - 207 207
------ ------ ------ ------ ------ ------ ------ ------
(2,043) (2,134) - 104 - 21 207 (3,845)
------ ------ ------ ------ ------ ------ ------ ------
Other comprehensive income
-Financial assets held at year-end - (403) - - - - - (403)
------ ------ ------ ------ ------ ------ ------ ------
- (403) - - - - - (403)
------ ------ ------ ------ ------ ------ ------ ------
Total gains / (losses) for 2015 (2,043) (2,537) - 104 - 21 207 (4,248)
------ ------ ------ ------ ------ ------ ------ ------
The Group has not developed any quantitative unobservable inputs for measuring the fair value of its level 3 financial
assets at 31 December 2015 and 2014. Instead the Group used prices from third-party pricing information without
adjustment.
A reasonable change in any individual significant input used in the level 3 valuations is not anticipated to have a
significant change in fair values as above.
8. Investment property
2015 2014
US $000 US $000
Valuation as at 1 January 116,609 129,916
Fair value gain (note 25) 7,819 61
Exchange difference (1,104) (13,368)
------ ------
As at 31 December 123,324 116,609
------ ------
The investment property relates to Wyler Park property in Bern, Switzerland, which is used for earning rental income. The
Group has no restriction on the realizability of the property or the remittance of income and any proceeds of disposal.
Wyler Park investment property loan (note 17) is secured on the property itself.
Fair valuation
The investment property is the Group's only non-financial asset measured at fair value on a recurring basis, and its fair
value is classified within the fair value hierarchy as level 3.
The investment property was valued by the independent professional valuers Wüest & Partners as at 31 December 2015 and 2014
on the basis of open market value in accordance with the appraisal and valuation guidelines of the Royal Institute of
Certified Surveyors, and the European Group of Valuers' Associations. The investment property is revalued annually on 31
December.
The significant inputs and assumptions are developed in close consultation with management. The valuation processes and
fair value changes are reviewed by the Board of Directors at each reporting date.
The fair values of investment property are estimated using the discounted cash-flow (DCF) method. With this method, the
current market value of a property is determined as the total of all projected future net earnings (before interest, taxes,
depreciation and amortization) discounted to present-day equivalents. These net earnings are discounted individually for
each property with due allowance for specific opportunities and threats, and with adjustment in line with market conditions
and risks. All projected cash flows are presented to ensure maximum transparency.
The valuations are based on the following assumptions:
- The property has been appraised as continuation scenario. That means, that no change of use scenarios have been
calculated as well that would result to a higher value.
- A one-period DCF model was adopted. The valuation period extends for 100 years from the valuation date, with an implicit
residual value in the 11th period.
- Discounting is based on a risk-adjusted interest rate. Rates are determined on the basis of appropriate benchmarks
derived from arm's-length transactions. These are broken down as follows: risk-free interest rate + property risk
(immobility of capital) + premium for macro-location + premium for micro-location depending on use + premium for property
quality and income risk + any other specific premiums.
- The valuations assume 1% annual inflation for income and all expenditure. Where a nominal discount rate is applied, this
is adjusted accordingly.
- Credit risks posed by specific tenants are not explicitly factored into the valuation.
- Allowance is made for the specific indexing provisions in existing leases. An indexing factor of 80% (Swiss average) is
assumed for the period following lease expiry.
- For existing tenancies, the timing of individual payments is assumed to comply with the terms of the lease.
Following lease expiry, cash flows for commercial premises are taken to be quarterly in advance, for housing monthly in
advance.
- In terms of running costs, entirely separate service charge accounts are assumed, with no tenancy-related ancillary costs
to be borne by the owner.
- The maintenance (repair and upkeep) costs were calculated by means of a lifecycle analysis of the individual building
elements. The building structure's remaining lifespan was estimated and periodic refurbishments modelled on the basis of
the general condition of the fabric as determined during the property inspection.
Appropriate annual reserves were calculated accordingly and plausibility tested using comparables and Wüest & Partner's own
benchmarks. The calculation factors in 100% of repair costs in the first 10 years; the proportion applied from year 11
onwards is limited to the value-preserving investments (recoverable share).
The valuations are sensitive to the above inputs, all of which are unobservable.
Future rental income
The future minimum rental income under non-cancellable rental agreements, is receivable as follows:
2015 2014
US $000 US $000
- Less than 1 year 5,629 5,923
- Between 1 and 5 years 23,050 21,186
- Over 5 years 36,879 -
------ ------
65,558 27,109
------ ------
Rental agreements are quoted in Swiss Francs. The equivalent USD amounts shown in the table above are based on the
exchange rates as at 31 December 2015 and 31 December 2014 respectively.
9. Investments in associate and joint venture
2015 2014
US $000 US $000
As at 1 January - 5,524
Additions 7,500 -
Capital return (8,183) (5,000)
Fair value (loss) / gain 683 (524)
------ ------
As at 31 December - -
------ ------
Name of investee Type of investment Place of incorporation Principal activity Proportion of voting rights held Fair value
2015US $000 2014US $000
Silvermore Ltd Joint venture Cayman Islands Investment holding (dormant) 50% - -
----- ------
- -
----- -----
As at 31 December 2014 Silvermore had ceased to be a contractual party to a Total Return Swap (ISDA) agreement with
Citibank N.A. and had no other assets or liabilities. Silvermore Ltd is dormant since January 2015.
During the year, the Group invested in a 25% interest in Highbridge Loan Management Warehouse 7-2015 Ltd (a company
incorporated in Cayman Islands), through its subsidiary Mountview Holdings Ltd, until Highbridge was converted into a CLO.
After the conversion into a CLO the entity ceased to be an associate of the Group.
10. Details of subsidiaries
Details of the investments in which the Group has a controlling interest are as follows:
Name of Subsidiary Place of incorporation Holding Proportion of voting rights and shares held Principal activity
Livermore Properties Limited British Virgin Islands Ordinary shares 100% Holding of investments
Mountview Holdings Limited British Virgin Islands Ordinary shares 100% Investment vehicle
Silvermore 2 Ltd Cayman Islands Ordinary shares 100% Investment vehicle (Dormant)
Sycamore Loan Strategies Ltd Cayman Islands Ordinary shares 100% Investment vehicle
Sycamore Loan Funding Ltd Cayman Islands Ordinary shares 100% Investment vehicle
Livermore Israel Investments Ltd Israel Ordinary shares 100% Holding of investments
Livermore Capital AG Switzerland Ordinary shares 100% Administration services
Livermore Investments AG* Switzerland Ordinary shares 100% Real Estate owner and management
Enaxor S.a.r.l Luxembourg Ordinary shares 100% Holding of investment
Livermore Investments Cyprus Limited Cyprus Ordinary shares 100% Administration services
Sandhirst Limited* Cyprus Ordinary shares 100% Holding of investments
* Held by Enaxor S.a.r.l.
Silvermore 2 Ltd was dissolved in 2016.
Blackline Investments Inc. was dissolved during the year.
11. Deferred tax
The Company is an international business company based in the British Virgin Islands (BVI) and, under its laws, is not
subject to taxation. Deferred taxes relate to the temporary differences between carrying amounts and corresponding tax
base of its subsidiaries, in Switzerland.
The deferred tax shown in the consolidated statement of financial position relates to the following items:
2015 2014
US $000 US $000
Investment property - revaluation surplus (6,362) (5,805)
Derivative financial instruments - recognised carrying amount - 47
Tax losses 2,425 3,486
------ ------
Net deferred tax (liability) (3,937) (2,272)
------ ------
The movement on the deferred taxation account is as follows:
Investment property Derivative financial instruments Tax losses Total
US $000 US $000 US $000 US $000
As at 1 January 2014 (5,845) 344 3,545 (1,956)
(Charged) / credited to profit or loss (note 28)
- timing differences (329) (294) 166 (457)
Exchange difference 369 (3) (225) 141
------ ------ ------ ------
As at 1 January 2015 (5,805) 47 3,486 (2,272)
(Charged) / credited to profit or loss (note 28)
- timing differences (895) (46) (913) (1,854)
Exchange difference 338 (1) (148) 189
------ ------ ------ ------
As at 31 December 2015 (6,362) - 2,425 (3,937)
------ ------ ------ ------
The Group expects that future taxable profits will be available in the jurisdiction where the deferred tax assets occurred
(Switzerland) so as to utilise the carrying amount of the deferred tax assets recognised as at the end of the year.
As at 31 December 2015 and 2014 there is no unrecognised deferred tax asset.
12. Trade and other receivables
2015 2014
US $000 US $000
Financial items
Accrued interest and dividend income 304 514
Amounts due by related parties (note 30) 2,514 2,497
Other receivables 272 16,757
------ ------
3,090 19,768
Non-Financial items
Other assets (note 30) 2,256 3,384
Prepayments 272 276
------ ------
5,618 23,428
------ ------
Allocated as:
Current assets 4,490 20,890
Non-current assets (other assets - note 30) 1,128 2,538
------ ------
5,618 23,428
------ ------
Other receivables at 31 December 2014 include:
(a) an amount of USD 15m that the Company invested during the period in the first loss tranche of a warehouse
facility for accumulating loans with the intention to transfer these loans to a CLO. In December 2014, the said CLO was
priced and the loans accumulated in the warehouse were agreed to be transferred at purchase price to the CLO on 10 January,
2015. Consequently, Livermore's investment amount plus net carry earned became receivable as of the end of December 2014.
On 16 January 2015 Livermore received a net amount of USD 16.3m.
(b) an amount of USD 1m that the Company invested during the period in the first loss tranche of a warehouse facility
for accumulating loans with the intention to transfer these loans to a CLO. In December 2014, the said CLO was priced and
the loans accumulated in the warehouse were agreed to be transferred at purchase price to the CLO on 15 January, 2015.
Consequently, Livermore's investment amount plus net carry earned became receivable as of the end of December 2014. On 16
January 2015 Livermore received a net amount of USD 1.039m.
13. Cash and cash equivalents
Cash and cash equivalents included in the consolidated statement of cash flows comprise the following at the reporting
date:
2015 2014
US $000 US $000
Cash at bank 25,770 3,807
Bank overdrafts used for cash management purposes (13,208) (10,355)
------ ------
Cash and cash equivalents for the purposes of the consolidated statement of cash flows 12,562 (6,548)
------ ------
14. Share capital
Authorised share capital
The Company has authorised share capital of 1,000,000,000 ordinary shares with no par value, and no restrictions.
Issued share capital Number of shares Share premium arisingUS $000
Ordinary shares with no par value
As at 31 December 2014 and 31 December 2015 304,120,401 215,499
---------- ----------
Treasury shares Number of shares US $000
As at 1 January 2014 108,830,818 36,902
---------- ---------
As at 1 January 2015 108,830,818 36,902
Additions 3,000,000 1,544
---------- ---------
As at 31 December 2015 111,830,818 38,446
---------- ----------
In the consolidated statement of financial position the amount included as share premium and treasury shares comprises
of:
2015 2014
US $000 US $000
Share premium 215,499 215,499
Treasury shares (38,446) (36,902)
-------- --------
177,053 178,597
-------- --------
15. Share options
The Company has a share option scheme for acquiring ordinary shares of the Company.
Outstanding options Number of options Average exercise price GBP Average exercise price* USD
As at 1 January 2014 and 31 December 2014 11,340,000 0.75 1.18
Options expired (690,000) 0.71 1.05
--------
As at 31 December 2015 10,650,000 0.76 1.12
----------
Exercisable options Number of options Average exercise price GBP Average exercise price* USD
As at 31 December 2014 and 31 December 2015 11,340,000 0.75 1.18
Options expired (690,000) 0.71 1.05
--------
As at 31 December 2015 10,650,000 0.76 1.12
----------
Details of share options outstanding at 31 December 2015
3,383,334 19/07/06 19/07/07 19/07/07 19/07/16 0.78 1.15 1,608,710
3,383,333 19/07/06 19/07/08 19/07/08 19/07/16 0.78 1.15 1,824,133
3,383,333 19/07/06 19/07/09 19/07/09 19/07/16 0.78 1.15 2,001,774
166,667 13/05/08 13/05/09 13/05/09 13/05/18 0.30 0.44 21,703
166,667 13/05/08 13/05/10 13/05/10 13/05/18 0.30 0.44 24,115
166,666 13/05/08 13/05/11 13/05/11 13/05/18 0.30 0.44 25,820
---------- ----------
10,650,000 5,506,255
---------- ----------
5,506,255
----------
----------
The fair value of options granted to employees was determined using the Binomial valuation model. The model takes into
account a volatility rate of 41-45% calculated using the historical volatility of a peer group of similar companies and a
risk free interest rate of 4.0-4.4% and it has been assumed the options have an expected life of two years post date of
vesting.
The options lapse at the earliest of the expiry date of exercise period or the termination of the corresponding employee's
service.
* The exercise prices as per the share option scheme are quoted in British Pounds. The indicative equivalent USD amounts
shown in the table of details above as well as the average exercise prices are based on the exchange rates as at 31
December 2015.
16. Derivative financial instruments
2015 2014
US $000 US $000
Current assets
Total return swap - 1,125
------ ------
Current liabilities
Forward contract 217 -
------ ------
Forward contracts
The Group uses forward foreign exchange contracts to mitigate exchange rate exposure arising from forecast transactions
between USD and CHF. As at the reporting date the outstanding forward agreements are as follows:
Notional contract amount Foreign exchange currency Contract exchange rate Contract termination date
USD 5,000,000 CHF 0.9965 19 February 2016
USD 5,000,000 CHF 0.9988 19 February 2016
USD 10,000,000 CHF 1.0096 19 February 2016
USD 5,000,000 CHF 1.0234 19 February 2016
Forward contracts are considered by the Management as economic hedge arrangements but have not been designated as hedging
instruments for accounting purposes and their fair value changes are recognised in the profit or loss. The calculation of
the fair value of forward contracts is based on the contractual cash flows of future anticipated net settlement using the
foreign exchange rates prevailing at the reporting date.
During 2014 the Group used forward currency contracts; however, no such derivatives were open at 31 December 2014.
Total Return Swaps
As at 31 December 2014 the Group was a contractual party to a Total Return Swap (ISDA) agreement with Macquarie bank.
Based on the swap agreement the Group is entitled to receive the total returns arising from a portfolio of loan assets
(referenced assets), and is obliged to pay interest at a floating rate on the facility amount (warehouse facility):
Referenced assets amount Total returns Facility amount Floating rate Maturity date
USD 300,000,000 Interest payments, fees, repayment premiums or penalties, and other distributions USD 270,000,000 3M USD Libor + 1.9% 18 Sept. 2015
The swap was entered as a means for accumulating loans with the intention to transfer these loans to a CLO. In December
2014, the said CLO was priced and the loans accumulated in the warehouse were agreed to be transferred to the CLO on 10
January, 2015. Consequently, on 16 January 2015 the swap was terminated.
The calculation of the fair value of the swap is based on discounted cash flows of future anticipated interest payments
compared with the discounted cash flows of anticipated total returns receivable.
For the year ended 31 December 2015 a net fair value gain of USD 990,787 (2014: gain USD 3,133,381) has been recognised in
the profit or loss in relation to all derivative financial instruments.
17. Bank loans
2015 2014
US $000 US $000
-
As at 1 January 78,092 87,974
Additions 78,822 -
Repayment (79,751) (830)
Exchange difference (541) (9,052)
Refinancing fees (212) -
------ ------
As at 31 December 76,410 78,092
------ ------
Allocated as:
Current bank loans 1,407 78,092
Non-current bank loans 75,003 -
------ ------
76,410 78,092
------ ------
The bank loan relates to Wyler Park investment property purchase (note 8) and is secured on this property. The loan was
refinanced during the year. The principal amount of the loan facility as of 31 December 2015 is CHF 76.6 million. The
facility is committed until at least 30 June 2019. The loan facility maybe extended up to 30 June 2029, unless terminated
by either party.
The loan bears interest at 3-Month CHF Libor (with a floor rate at zero) plus 1.40% margin. The effective Interest rate of
the loan as at 31 December 2015 is 1.40%.
18. Bank overdrafts
2015 2014
US $000 US $000
Short term bank overdrafts 13,208 10,355
------ ------
Short term bank overdrafts bear Libor + lender's margin and have an average interest rate of 1.78% (2014 1.49%).
The Group's bank overdraft facilities are secured by the Group's financial assets portfolio up to an amount, as at 31
December 2015, of USD 31.5m.
The Group's bank overdraft undrawn facilities at 31 December 2015 amount to USD 18.3m.
19. Trade and other payables
2015 2014
US $000 US $000
Financial items
Trade payables 444 727
Amounts due to related parties (note 30) 1,377 579
Accrued expenses 386 430
------ ------
2,207 1,736
Non-financial items
Prepayment from tenants 510 -
VAT payable 53 22
------ ------
2,770 1,758
------ ------
The Directors consider that the carrying amount of trade and other payables approximates to their fair value. All amounts
fall due within one year.
20. Current tax (asset) / payable
2015 2014
US $000 US $000
Corporation tax (6) 5
------ ------
21. Net asset value per share
Net asset value per share has been calculated by dividing the net assets attributable to ordinary shareholders by the
closing number of ordinary shares (net of treasury shares) in issue during the relevant financial periods.
Diluted net asset value per share is calculated after taking into consideration the potentially dilutive shares in
existence as at 31 December 2015 and 31 December 2014.
2015 2014
Net assets attributable to ordinary shareholders (USD 000) 148,637 159,974
------------- -------------
Closing number of ordinary shares in issue 192,289,583 195,289,583
------------- -------------
Basic net asset value per share (USD) 0.77 0.82
------------- -------------
Net assets attributable to ordinary shareholders (USD 000) 148,637 159,974
Dilutive share options - exercise amount 221 234
------------- -------------
Net assets attributable to ordinary shareholders including the effect of potentially diluted shares (USD 000) 148,858 160,208
------------- -------------
Closing number of ordinary shares in issue 192,289,583 195,289,583
Dilutive share options 500,000 500,000
------------- -------------
Closing number of ordinary shares including the effect of potentially diluted shares 192,789,583 195,789,583
------------- -------------
Diluted net asset value per share (USD) 0.77 0.82
------------- -------------
Number of Shares
Ordinary shares 304,120,401 304,120,401
Treasury shares (111,830,818) (108,830,818)
------------- -------------
Closing number of ordinary shares in issue 192,289,583 195,289,583
------------- -------------
The Share options (note 15) granted on 13 May 2008 have a dilutive effect on the net asset value per share, given that
their exercise price is lower than the net asset value per Company's share at 31 December 2015 and 2014. All other share
options do not impact the diluted net asset value per share for 2015 and 2014 as their exercise price was higher than the
net asset value per share at 31 December 2015 and 2014.
Repurchase of own shares
The Board believes that the ability of the Company to re-purchase its own Ordinary shares in the market may potentially
benefit equity shareholders of the Company. The repurchase of Ordinary shares at a discount to the underlying net asset
value enhances the net asset value per share of the remaining equity shares.
In 2015, the Company bought 3,000,000 of its Ordinary shares at an average price of USD 0.51 per share.
In 2014 the Company did not buy any own shares.
22. Segment reporting
The Group's monitoring and strategic decision making process in relation to its investments is separated into two activity
lines which are also identified as the Group's operating segments. These operating segments are monitored and strategic
decisions are made on the basis of segment operating results.
Segment information can be analysed as follows:
Equity and debt instruments investment activities Investment property activities Total per financial statements
2015 2014 2015 2014 2015 2014
Segment results US $000 US $000 US $000 US $000 US $000 US $000
Investment income
Interest and dividend income 25,675 26,619 - - 25,675 26,619
Investment property income - - 5,227 5,159 5,227 5,159
(Loss) / gain on investments (33,955) (9,946) 7,819 61 (26,136) (9,885)
------ ------ ------ ------ ------ ------
Gross (loss) / profit (8,280) 16,673 13,046 5,220 4,766 21,893
Other income 35 462 - - 35 462
Administrative expenses (4,510) (5,417) (645) (1,802) (5,155) (7,219)
------ ------ ------ ------ ------ ------
Operating (loss) / profit (12,755) 11,718 12,401 3,418 (354) 15,136
Finance costs (1,109) (4,254) (1,345) (3,032) (2,454) (7,286)
Finance income - 109 - - - 109
------ ------ ------ ------ ------ ------
(Loss) / profit before taxation (13,864) 7,573 11,056 386 (2,808) 7,959
Taxation charge - - (1,951) (755) (1,951) (755)
------ ------ ------ ------ ------ ------
(Loss) / profit for year (13,864) 7,573 9,105 (369) (4,759) 7,204
------ ------ ------ ------ ------ ------
Segment assets 121,104 134,815 124,588 117,641 245,692 252,456
------ ------ ------ ------ ------ ------
Segment liabilities 15,681 11,278 81,374 81,204 97,055 92,482
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The Group's investment income and its investments are divided into the following geographical areas:
Equity and debt instrumentsinvestment activities Investment property activities Total per financial statements
2015 2014 2015 2014 2015 2014
Investment Income US $000 US $000 US $000 US $000 US $000 US $000
Switzerland -
- More to follow, for following part double click ID:nRSX0648ZdRecent news on Livermore Investments
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