REG - Livermore Inv. Group - Annual Financial Report <Origin Href="QuoteRef">AUIV.L</Origin> - Part 4
24/05/2016 07:06
- Part 4: For the preceding part double click ID:nRSX0648Zc
- 13,046 6,732 13,046 6,732
Other European countries (22) (723) - - (22) (723)
United States (5,950) 18,400 - - (5,950) 18,400
India (2,235) (1,729) - - (2,235) (1,729)
Asia (73) (787) (73) (787)
------ ------ ------ ------ ------ ------
(8,280) 15,161 13,046 6,732 4,766 21,893
------ ------ ------ ------ ------ ------
Investments
Switzerland - - 123,324 116,609 123,324 116,609
Other European countries 5,089 6,225 - - 5,089 6,225
United States 72,030 83,843 - - 72,030 83,843
India 10,004 14,219 - - 10,004 14,219
Asia 3,825 4,283 - - 3,825 4,283
------ ------ ------ ------ ------ ------
90,948 108,570 123,324 116,609 214,272 225,179
------ ------ ------ ------ ------ ------
Investment income, comprising interest and dividend income, gains or losses on investments, and investment property income,
is allocated on the basis of the customer's geographical location in the case of the investment property activities segment
and the issuer's location in the case of the equity and debt instruments investment activities segment. Investments are
allocated based on the issuer's location.
During 2015, 81.9% of the Group's rent relates to rental income from a single customer (SBB - Swiss national transport
authority) in the investment property activities segment (2014: 89%).
23. Interest and dividend income
2015 2014
US $000 US $000
Interest from investments 127 434
Dividend income 25,548 26,185
------ ------
25,675 26,619
------ ------
24. Investment property income
2015 2014
US $000 US $000
Gross rental income 5,634 5,923
Direct expenses (407) (764)
------ ------
5,227 5,159
------ ------
All direct expenses relate to the generation of rental income.
25. Loss on investments
2015 2014
US $000 US $000
(Loss) / gain on sale of investments (3,459) 1,709
Investment property revaluation 7,819 61
Foreign exchange loss - (232)
Loss due to impairment of available-for-sale financial assets (31,726) (8,861)
Fair value losses on financial assets through profit or loss (320) (5,067)
Fair value gain on associate 683 -
Fair value loss on investment in joint venture - (524)
Fair value gains on derivative instruments 991 3,133
Bank custody fees (124) (104)
------ ------
(26,136) (9,885)
------ ------
The investments disposed of during the year resulted in the following realised losses (i.e. in relation to their original
acquisition cost):
2015 2014
US $000 US $000
Available-for-sale (5,723) (2,682)
At fair value through profit or loss (303) (2,374)
------ ------
(6,026) (5,056)
------ ------
26. Administrative expenses
Legal expenses 188 118
Directors' fees and expenses 2,414 3,522
Other salaries and expenses 213 1,152
Professional and consulting fees 872 1,299
Office costs 358 299
Depreciation 16 13
Other operating expenses 447 657
Provision charge 513 -
Audit fees 134 159
------ ------
5,155 7,219
------ ------
5,155
7,219
------
------
Throughout 2015 the Group employed 7 members of staff (2014: 6).
Other salaries and expenses include USD 21,640 of social insurance and similar contributions (2014: USD 82,632), as well as
USD 6,593 of defined contributions plan costs (2014: USD 19,499).
27. Finance costs and income
2015 2014
US $000 US $000
Finance costs
Bank interest on investment property loan* 1,340 3,032
Other swap interest cost - 496
Other bank interest 267 252
Foreign exchange loss 847 3,506
------ ------
2,454 7,286
------ ------
Finance income
Foreign exchange gain - 109
------ ------
Net finance costs 2,454 7,177
------ ------
*Includes interest payments on a related swap.
28. Taxation
2015 2014
US $000 US $000
Current tax charge 97 298
Deferred tax charge 1,854 457
------ ------
1,951 755
------ ------
The tax charge for the year can be reconciled to the accounting profit as follows:
(Loss) / profit before tax (2,808) 7,959
------ ------
Effect of applicable corporation tax rates 2,301 177
Effect of income not subject to tax (1,961) (131)
Effect of expenses not deductible for tax purposes 39 232
Effect of current year losses (383) (87)
Property tax 101 107
Deferred tax charge 1,854 457
------ ------
Tax for the year 1,951 755
------ ------
The parent company is an international business company based in the British Virgin Islands (BVI) and, under the BVI laws,
is not subject to corporation tax. Corporation tax is calculated with reference to the results of the Company's
subsidiaries in Switzerland and Cyprus.
29. Earnings per share
Basic earnings per share has been calculated by dividing the profit for the year attributable to ordinary shareholders of
the parent Company by the weighted average number of ordinary shares in issue of the parent during the relevant financial
periods.
Diluted earnings per share is calculated after taking into consideration other potentially dilutive shares in existence
during the year ended 31 December 2015 and the year ended 31 December 2014.
2015 2014
(Loss) / profit for the year attributable to ordinary shareholders of the parent (USD 000) (4,759) 7,204
------------- -------------
Weighted average number of ordinary shares outstanding 194,599,172 195,289,583
------------- -------------
Basic earnings per share (USD) (0.02) 0.04
------------- -------------
Weighted average number of ordinary shares outstanding 194,599,172 195,289,583
Dilutive effect of share options 59,005 84,418
--------- ---------
Weighted average number of ordinary shares including the effect of potentially dilutive shares 194,658,177 195,374,001
------------- -------------
Diluted earnings per share (USD) (0.02) 0.04
------------- -------------
The Share options (note 15) granted on 13 May 2008 have a dilutive effect on the weighted average number of ordinary shares
only, given that their exercise price is lower than the average market price of the Company's shares on the London Stock
Exchange (AIM division) during the year ended 31 December 2015 and 2014. All other share options do not impact the diluted
earnings per share for 2015 and 2014 as their exercise price was higher than the average market price of the Company's
shares during the year ended 31 December 2015 and 2014.
30. Related party transactions
The Group is controlled by Groverton Management Ltd, an entity owned by Noam Lanir, which at 31 December 2015 held 78.74%
(2014: 79.06%) of the Company's effective voting rights.
2015 2014
US $000 US $000
Amounts receivable from key management
Other assets 2,256 3,384 (1)
Directors' current accounts 2,514 2,497
------ ------
4,770 5,881
------- -------
Amounts payable to other related party
Loan payable (499) (499) (2)
------ ------
(499) (499)
------- -------
Amounts payable to key management
Directors' current accounts (35) (80)
Other key management personnel (843) - (3)
------ ------
(878) (80)
------- -------
Key management compensation
Short term benefits
Executive directors' fees 795 795 (4)
Executive directors' reward payments 1,528 2,628
Non-executive directors' fees 69 74
Non-executive directors' reward payments 22 25
Other key management fees 383 -
------ ------
2,797 3,522
------- -------
(1) Loans of USD 5.523m were made to a key management employee for the acquisition of shares in the Company. Interest was
payable on these loans at 6 month US LIBOR plus 0.25% per annum and the loans were secured on the shares acquired. The
loans were repayable on the earlier of the employee leaving the Company or April 2013. In December 2012 the Board decided
to renew the outstanding amount of these loans for a period of another five years. Based on the Board's decision, the
outstanding amount is reduced annually on a straight line over five years, as long as the key management employee remains
with the Company. The relevant reduction in the loan amount for the year was USD 1.128m. The loans are classified as "other
assets" and are included under trade and other receivables (note 12).
(2) A loan with a balance at 31 December 2015 of USD 0.499m (31 December 2014: USD 0.499m) has been received from an
other related company, Chanpak Ltd. The loan is free of interest, it is unsecured and is repayable on demand. This loan is
included within trade and other payables (note 19).
(3) The amount payable to other key management personnel relates to a payment made on behalf of the Company for
investment purposes and accrued consultancy fees.
(4) These payments were made directly to companies to which they are related.
No social insurance and similar contributions nor any other defined benefit contributions plan costs were incurred for the
Group in relation to its key management personnel in either 2015 or 2014.
Noam Lanir, through an Israeli partnership, is the major shareholder of Babylon Limited, an Israel based Internet Services
Company. The Group as of 31 December 2015 held a total of 1.941m shares at a value of USD 0.931m (2014: 1.941m shares at a
value of USD 0.922m) which represents 4% of its effective voting rights. The investment in Babylon Ltd is included within
public equity investments under financial assets at fair value through profit or loss (note 5).
During the year the Group received administrative services of USD 0.039m (2014: 0.103) in connection with investments from
an other related company, Mash Medical Life Tree Marketing Ltd.
During the year deeds of pledges of an amount of USD 5.4m were given for an other related party, Chanpak Ltd, in relation
to a bank loan which was repaid in February 2016.
31. Provisions
The movement in provisions for the year is as follows:
2015 2014
US $000 US $000
As at 1 January - 26
Additions (note 32) 513 -
Settlements - (26)
----- -----
As at 31 December 513 -
------ ------
Allocated as:
Current liability 128 -
Non-current liability 385 -
------ ------
513 -
------ ------
32. Litigation
Fairfield Sentry Ltd vs custodian bank and beneficial owners
One of the custodian banks that the Group uses faces a contingent claim up to USD 2.1m, and any interest as will be decided
by a US court and related legal fees, with regards to the redemption of shares in Fairfield Sentry Ltd, which were bought
in 2008 at the request of Livermore and on its behalf. The same case was also filed in BVI where the Privy Council ruled
against the plaintiffs.
As a result of the surrounding uncertainties over the existence of any obligation for Livermore, as well as for the
potential amount of exposure, the Directors cannot form an estimate of the outcome for this case and therefore no provision
has been made.
No further information is provided on the above case as the Directors consider it could prejudice its outcome.
Ex employee vs Empire Online Ltd
In 2007 an ex employee of Empire Online Limited (the Company's former name) filed a law suit against one of its Directors
and the Company in the Labor Court in Tel Aviv. According to the lawsuit the plaintiff claimed compensation relating to the
sale of all commercial activities of Empire Online Limited until the end of 2006, and the dissolution of the company and
the terms of termination of his employment with Empire Online Limited.
Prior to the filing of the lawsuit in Israel, the Company filed a claim against the plaintiff in the Court in Cyprus based
upon claims concerning breach of faith of the plaintiff towards his employers. Litigation was completed in Israel.
On 5 March 2014, the Labor Court in Tel Aviv issued a ruling in which the court denied most of the plaintiff's claims and
accepted only his claim for termination of employment. On 16 April 2014 the plaintiff filed an appeal against the ruling.
On 10 June 2015 the court held a hearing of the appeal and suggested that both sides to settle the dispute by means of
mediation. On 20 January 2016 the parties reached an agreement for an out of court settlement, for which a corresponding
provision has been made (note 31).
33. Commitments
As part of the lease extension agreement with SBB in 2015, the Group will invest up to a maximum of CHF 3.95m and SBB is
expected to invest up to CHF 9m to upgrade the property and allow for additional workspaces.
Other than the above, the Group has no capital or other commitments as at 31 December 2015.
34. Events after the reporting date
There were no material events after the end of the reporting year, which have a bearing on the understanding of these
consolidated financial statements.
35. Financial risk management objectives and policies
Background
The Group's financial instruments comprise available for sale financial assets, financial assets at fair value through
profit or loss, derivatives, cash balances and receivables and payables that arise directly from its operations. For an
analysis of financial assets and liabilities by category, refer to note 36.
Risk objectives and policies
The objective of the Group is to achieve growth of shareholder value, in line with reasonable risk, taking into
consideration that the protection of long-term shareholder value is paramount. The policy of the Board is to provide a
framework within which the investment manager can operate and deliver the objectives of the Group.
Risks associated with financial instruments
Foreign currency risk
Foreign currency risks arise in two distinct areas which affect the valuation of the investment portfolio, 1) where an
investment is denominated and paid for in a foreign currency; and 2) where an investment has substantial exposure to non-US
Dollar underlying assets or cash flows denominated in a foreign currency. The Group in general does not hedge its currency
exposure. The Group discretionally and partially hedges against foreign currency movements affecting the value of the
investment portfolio based on its view on the relative strength of certain currencies. Any hedging transactions represent
economic hedges; the Group does not apply hedge accounting in any case. Management monitors the effect of foreign currency
fluctuations through the pricing of the investments. The level of financial instruments denominated in foreign currencies
held by the Group at 31 December 2014 is the following:
2015 2015 2015 2014 2014 2014
US $000 US $000 US $000 US $000 US $000 US $000
Financial assets Liabilities Netvalue Financial assets Liabilities Net value
British Pounds (GBP) 1,611 (4,475) (2,864) 1,485 (6,982) (5,497)
Euro 2,641 (253) 2,388 3,947 (228) 3,719
Swiss Francs (CHF) 28,653 (9) 28,644 31,109 (8) 31,101
Indian Rupee (INR) 7,099 - 7,099 9,142 - 9,142
Israel Shekels (ILS) 2,850 (90) 2,760 2,892 (90) 2,802
Others - (5) (5) - (5) (5)
------ ------ ------ ------ ------ ------
Total 42,854 (4,832) 38,022 48,575 (7,313) 41,262
------ ------ ------ ------ ------ ------
Also, some of the USD denominated investments are backed by underlying assets which are invested in non-USD assets. For
instance, investments in certain emerging market private equity funds are denominated in USD but the funds in turn have
invested in assets denominated in non-USD currencies.
A 10% increase of the following currency rates against the rate of United States Dollar (USD) at 31 December 2015 would
have the following impact. A 10% decrease of the following currencies against USD would have an approximately equal but
opposite impact.
2015 2015 2014 2014
US $000 US $000 US $000 US $000
Profit or loss Other comprehensive income Profit or loss Other comprehensive income
British Pounds (GBP) (445) 159 (696) 146
Euro 162 77 221 150
Swiss Francs (CHF) 2,842 - 3,110 -
Indian Rupee (INR) - 710 - 914
Israel Shekels (ILS) 273 3 280 -
------ ------ ------ ------
Total 2,832 949 2,915 1,210
------ ------ ------ ------
The above analysis assumes that all other variables in particular, interest rates, remain constant. The analysis does not
include the impact arising from the translation of foreign operations from their functional to the presentation currency.
Interest rate risk
The Group is exposed to interest rate risk on its interest-bearing instruments which are affected by changes in market
interest rates. The Group has borrowings of USD 76.4m (2014: USD 78.0m) related to a real estate asset (Wylerpark, Bern).
The Group has banking credit lines which are available on short notice for the Group to use in its investment activities,
the costs of which are based on variable rates plus a margin. When an investment is made utilising the facility,
consideration is given to the financing costs which would impact the returns. The level of banking facilities used is
monitored by both the Board and the management on a regular basis. The level of banking facilities utilised at 31 December
2015 was USD 13.2m (2014: USD 10.4m).
As at 31 December 2015 the Group had no financial liabilities that bore an interest rate risk, other than the previously
disclosed bank facilities.
Interest rate changes will also impact equity prices. The level and direction of changes in equity prices are subject to
prevailing local and world economics as well as market sentiment all of which are very difficult to predict with any
certainty.
The Group has fixed and floating rate financial assets including bank balances that bear interest at rates based on the
banks floating interest rates. In particular, the fair value of the Group's fixed rate financial assets is likely to be
negatively impacted by an increase in interest rates. The interest income of the Group's floating rate financial assets is
likely to be positively impacted by an increase in interest rates.
The Group has exposure to US bank loans and to a lesser degree emerging market loans through CLO equity tranches. An
investment in the CLO equity tranche represents a leveraged investment into such loans. As these loans (assets of a CLO)
and the liabilities of a CLO are floating rate in nature (typically 3 month LIBOR as the base rate), the residual income to
CLO equity tranches is normally linked to the floating rate benchmark and thus normally do not carry substantial interest
rate risk. In the current low rate environment, however, most loans feature a LIBOR floor. The presence of LIBOR floors
creates an interest rate risk to CLO equity distributions as long as the benchmark rate is below the weighted average LIBOR
floor level on the CLO loan portfolio. Thus, an increase in the benchmark floating rate up to the weighted average LIBOR
floor level is expected to cause distributions to CLO equity to reduce whereas a decrease in the benchmark floating rate is
expected to increase such distributions.
The Group's interest bearing assets and liabilities are as follows:
2015 2014
US $000 US $000
Financial assets - subject to:
- fair value changes 4,534 4,903
- interest changes 88,816 83,869
------ ------
Total 93,350 88,772
------ ------
Financial liabilities - subject to:
- interest changes 89,618 88,447
------ ------
Total 89,618 88,447
------ ------
Changes in market interest rates will affect the valuation of fixed rate interest bearing instruments. A 1% (100 basis
points) change in market interest rates would result in an estimated -0.18% change in the net asset value as at 31 December
2015 (2014: -0.23%).
An increase of 1% (100 basis points) in interest rates would have the following impact. An equivalent decrease would have
an approximately equal but opposite impact.
2015 2015 2014 2014
US $000 US $000 US $000 US $000
Profit or loss Other comprehensive income Profit or loss Other comprehensive income
Financial assets
- fair value changes (269) - (322) -
- interest changes 888 - 839 -
Financial liabilities
- interest changes (896) - (884) -
------ ------ ------ ------
(277) - (367) -
------ ------ ------ ------
The above analysis assumes that all other variables, in particular currency rates, remain constant.
Market price risk
By the nature of its activities, most of the Group's investments are exposed to market price fluctuations. The Board
monitors the portfolio valuation on a regular basis and consideration is given to hedging or adjusting the portfolio
against large market movements.
The Group had no single major financial instrument that in absolute terms and as a proportion of the portfolio could result
in a significant reduction in the NAV and share price. Due to the very low exposure of the Group to public equities, and
having no specific correlation to any market, the equity price risk is low. The portfolio as a whole does not correlate
exactly to any Index.
Management of risks is primarily achieved by having a diversified portfolio to spread the market price risk. The Group has
investments in CLO equity tranches. These investments represent leveraged exposure to typically senior secured loans.
Investments in CLOs are subject to many risks including market price risk, liquidity, credit risk, interest rate,
reinvestment and certain other risks.
Prices of these CLO investments may be volatile and will generally fluctuate due to a variety of factors that are
inherently difficult to predict, including but not limited to changes in prevailing credit spreads and yield expectations,
interest rates, underlying portfolio credit quality and market expectations of default rates on non-investment grade loans,
general economic conditions, financial market conditions, legal and regulatory developments, domestic and international
economic or political events, developments or trends in any particular industry, and the financial condition of the
obligors that constitute the underlying portfolio.
A 10% uniform change in the value of the Group's portfolio of financial instruments (excluding private equities and
financial and minority holdings) would result in a 4.84% change in the net asset value as at 31 December 2015 (2014:
5.55%), and would have the following impact (either positive or negative, depending on the corresponding sign of the
change):
2015 2015 2014 2014
US $000 US $000 US $000 US $000
Profit or loss Other comprehensive income Profit or loss Other comprehensive income
Available-for-sale financial assets - 6,721 - 7,677
Financial assets at fair value through profit or loss 358 - 403 -
------ ------ ------ ------
358 6,721 403 7,677
------ ------ ------ ------
Derivatives
The Investment Manager may use derivative instruments in order to mitigate market risk or to take a directional investment.
These provide a limited degree of protection and would not materially impact the portfolio returns if a large market
movement did occur.
Credit Risk
The Group invests in a wide range of securities with various credit risk profiles including investment grade securities and
sub investment grade positions. The investment in debt instruments is both in investment grade securities and in sub
investment grade or unrated debt instruments. The investment manager mitigates the credit risk via diversification across
issuers. However, the Group is exposed to a migration of credit rating, widening of credit spreads and default of any
specific issuer.
The Group only transacts with regulated institutions on normal market terms which are trade date plus one to three days.
The levels of amounts outstanding from brokers are regularly reviewed by the management. The duration of credit risk
associated with the investment transactions is the period between the date the transaction took place, the trade date and
the date the stock and cash are transferred, the settlement date. The level of risk during the period is the difference
between the value of the original transaction and its replacement with a new transaction. The Group is mainly exposed to
credit risk in respect of its fixed income investments (mainly CLOs) of USD 72.6m (2014: USD 83.8m). The Group's maximum
credit risk exposure at 31 December 2015 is as follows:
2015 US $000 2014 US $000
Financial assets:
Loans and receivables:
Trade and other receivables 3,090 19,768
Cash at bank 25,770 3,807
------ ------
28,860 23,575
Available-for-sale financial assets 65,946 82,217
Financial assets at fair value through profit or loss 6,655 1,623
Investments in associate and joint venture - -
Derivatives - 1,125
------ ------
101,461 108,540
------- -------
The fair values of the Group's investments in bonds and other debt instruments are also affected by the credit risk of
those instruments. However, it is not practical to provide an analysis of the changes in fair values due to the credit
risk impact for the year or previous periods, nor to provide any relevant sensitivity analysis.
The Group has exposure to US senior secured loans and to a lesser degree emerging market loans through CLO equity tranches.
These loans are primarily non-investment grade loans or interests in non-investment grade loans, which are subject to
credit risk among liquidity, market value, interest rate, reinvestment and certain other risks. It is anticipated that
these non-investment grade loans generally will be subject to greater risks than investment grade corporate obligations.
A non-investment grade loan or debt obligation or an interest in a non-investment grade loan is generally considered
speculative in nature and may become a defaulted security for a variety of reasons. A defaulted security may become subject
to either substantial workout negotiations or restructuring, which may entail, among other things, a substantial reduction
in the interest rate, a substantial write-down of principal, and a substantial change in the terms, conditions and
covenants with respect to such defaulted security. In addition, such negotiations or restructuring may be quite extensive
and protracted over time, and therefore may result in substantial uncertainty with respect to the ultimate recovery on such
defaulted security. Bank loans have historically experienced greater default rates than has been the case for investment
grade securities.
The Group has no investment in sovereign debt as at 31 December 2015 or 2014.
At 31 December the credit rating distribution of the Group's asset portfolio subject to credit risk (CLOs, bonds and other
debt instruments, bank balances and receivables) was as follows:
Rating 2015 Amount Percentage 2014 Amount Percentage
US $000 US $000
AA 18,772 18.5%
A+ - - 1,000 0.9%
A 976 1.0% 16,125 14.9%
A- 6,326 6.2% 4,321 4.0%
BB 2,900 2.9% 3,280 3.0%
BB+ 1,116 1.1% 1,111 1.0%
BB- 518 0.5% 512 0.5%
Not Rated 70,853 69.8% 82,191 75.7%
------ ------ ------ ------
101,461 100% 108,540 100%
------ ------ ------ ------
Included within "not rated" amounts are investments in loan market through CLOs of USD 63.046m (2014: USD 78.936m).
The modelled IRRs on the CLO portfolio are in low teens percentage points.
Liquidity Risk
The major financial liability of the Group is the bank loan of CHF 76.4m (USD 78.0m) used for purchase of a real estate
property, which has a maturity in 2029. The loan is collateralized by property valued at CHF 123.3m (USD 123.3m) at 31
December 2015. The loan is non-recourse, i.e. the holding company and its assets (apart from the Wyler Park property) are
neither pledged for this loan nor liable for recovery in case of default. The following table summarizes the contractual
cash outflows in relation to the Group's financial liabilities according to their maturity.
31 December 2015 Carrying amount Less than 1 year Between 1 and 2 years Between 2 and 5 years Over 5 years
US $000 US $000 US $000 US $000 US $000
Bank loan 76,410 2,477 2,557 75,531 -
Bank overdraft 13,208 13,208 - - -
Trade and other payables 2,207 2,207 - - -
Forward contracts - - -
------ ------ ------ ------ ------
Total 91,825 17,892 2,557 75,531 -
------ ------ ------ ------ ------
31 December 2014 Carrying amount Less than 1 year Between 1 and 2 years Between 2 and 5 years Over 5 years
US $000 US $000 US $000 US $000 US $000
Bank loan 78,092 78,143 - - -
Bank overdraft 10,355 10,355
Trade and other payables 1,736 1,736 - - -
------ ------ ------ ------ ------
Total 90,183 90,234 - - -
------ ------ ------ ------ ------
A significant proportion of the Group's portfolio is invested in mid-term private equity investments with low or no
liquidity. The investments of the Group in publicly traded securities are subject to availability of buyers at any given
time and may be very low or non-existent subject to market conditions.
There is currently no exchange traded market for CLO securities and they are traded over-the-counter through private
negotiations or auctions subject to market conditions. Currently the CLO market is liquid, but in times of market distress
the realization of the investments in CLOs through sales may be below fair value.
The management take into consideration the liquidity of each investment when purchasing and selling in order to maximise
the returns to shareholders by placing suitable transaction levels into the market.
At 31 December 2015, the Group had liquid investments totalling USD 102.6m, comprising of USD 25.8m in cash and cash
equivalents, USD 65.9 in investments in loan market through CLOs, USD 6.6m in other fixed income investments, USD 3.2m in
public equities and USD 1.1m in hedge funds. Management structures and manages the Group's portfolio based on those
investments which are considered to be long term, core investments and those which could be readily convertible to cash,
are expected to be realised within normal operating cycle and form part of the Group's treasury function.
Capital Management
The Group considers its capital to be its issued share capital and all of its reserves.
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to
shareholders through the optimisation of the balance between its net debt and equity.
Net debt to equity ratio is calculated using the following amounts as included on the consolidated statement of financial
position, for the reporting periods under review:
2015 2014
US $000 US $000
Cash at bank (25,770) (3,807)
Bank overdrafts 13,208 10,355
Bank loans 76,410 78,092
------ ------
Net Debt 63,848 84,640
------ ------
Total equity 148,637 159,974
------ ------
Net debt to equity ratio 0.43 0.53
------- -------
The Board believes that the ratio remains at an acceptable and manageable level.
36. Financial assets and liabilities by IAS 39 category
Note 2015 US $000 2014 US $000
Financial assets:
Loans and receivables:
Trade and other receivables 12 3,090 19,768
Cash at bank 13 25,770 3,807
------ ------
28,860 23,575
Available-for-sale financial assets 4 81,147 101,935
Financial assets at fair value through profit or loss 5 9,801 5,510
Derivative financial instruments 16 - 1,125
------ ------
119,808 132,145
------- -------
Financial liabilities:
Financial liabilities at amortised cost:
Bank loan 17 76,410 78,092
Bank overdrafts 18 13,208 10,355
Trade and other payables 19 2,207 1,736
------ ------
91,825 90,183
Financial liabilities at fair value through profit or loss:
Derivative financial instruments 16 217 -
------ ------
92,042 90,183
------- -------
The carrying amount of the financial assets and liabilities at amortised cost approximates to their fair value.
Shareholder Information
Registrars
All enquiries relating to shares or shareholdings should be addressed to:
Capita Registrars
PXS
34 Beckenham Road
Beckenham
Kent BR3 4TU
Telephone: 0870 162 3100
Facsimile: 020 8639 2342
Change of Address
Shareholders can change their address by notifying Capita Registrars in writing at the above address.
Website
www.livermore-inv.com
The Company's website provides, amongst other things, the latest news and details of the Company's activities, share price
details, share price information and links to the websites of our brands.
Direct Dividend Payments
Dividends can be paid automatically into shareholders' bank or building society accounts. Two primary benefits of this
service are:
· There is no chance of the dividend cheque going missing in the post; and
· The dividend payment is received more quickly because the cash sum is paid directly into the account on the payment
date without the need to pay in the cheque and wait for it to clear.
As an alternative, shareholders can download a dividend mandate and complete and post to Capita Registrars.
Lost Share Certificate
If your share certificate is lost or stolen, you should immediately contact Capita Registrars on 0870 162 3100 who will
advise on the process for arranging a replacement.
Duplicate Shareholder Accounts
If, as a shareholder, you receive more than one copy of a communication from the Company you may have your shares
registered in at least two accounts. This happens when the registration details of separate transactions differ slightly.
If you wish to consolidate such multiple accounts, please call Capita Registrars on 0870 162 3100.
Please note that the Directors of the Company are not seeking to encourage shareholders to either buy or sell the Company's
shares.
Corporate Directory
SecretaryChris Sideras Registered OfficeTrident ChambersPO Box 146Road TownTortolaBritish Virgin Islands Company Number475668 RegistrarsCapita RegistrarsPXS34 Beckenham Principal BankersBank Hapoalim18 Boulevard Royal BP 703L-2017Luxembourg FIBI BankSeestrasse 61Zurich 8027Switzerland Credit Suisse AGSeeefldstrasse 1Zurich 8070Switzerland UBS AGParadeplatz 6
RoadBeckenhamKent BR3 4TUEngland AuditorGrant Thornton (Cyprus) Ltd143, Spyrou Kyprianou AvenueLimassol 3083Cyprus SolicitorsTravers Smith10 Snow HillLondonEC1A CH-8098 Zürich
2ALEngland Nominated Adviser & BrokerArden Partners plc125 Old Broad StreetLondonEC2N 1AREngland Switzerland Bank Julius Baer & Co. Ltd.Bahnhofstrasse 36, CH-8010 Zurich, Switzerland
Principal BankersBank Hapoalim18 Boulevard Royal BP 703L-2017Luxembourg FIBI BankSeestrasse 61Zurich 8027Switzerland Credit
Suisse AGSeeefldstrasse 1Zurich 8070Switzerland UBS AGParadeplatz 6
CH-8098 Zürich
Switzerland Bank Julius Baer & Co. Ltd.Bahnhofstrasse 36, CH-8010 Zurich, Switzerland
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Livermore Investments
See all newsREG - Livermore Inv. Group - Directorate Change
AnnouncementREG - Livermore Inv. Group - Interim dividend exchange rate
AnnouncementREG - Livermore Inv. Group - Interim Dividend
AnnouncementREG - Livermore Inv. Group - Interim Results
AnnouncementREG - Livermore Inv. Group - Result of AGM
Announcement