REG-New Star Investment Trust PLC New Star Investment Trust PLC: Annual Financial Report
30/09/2019 07:05
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New Star Investment Trust PLC (NSI)
New Star Investment Trust PLC: Annual Financial Report
30-Sep-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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NEW STAR INVESTMENT TRUST PLC
This announcement constitutes regulated information.
UNAUDITED RESULTS
FOR THE YEAR ENDED 30TH JUNE 2019
New Star Investment Trust plc (the 'Company'), whose objective is to
achieve long-term capital growth, announces its consolidated results for
the year ended 30th June 2019.
FINANCIAL HIGHLIGHTS
30th June 30th June %
2019 2018 Change
PERFORMANCE
Net assets (£ '000) 113,971 111,366 2.34
Net asset value per Ordinary share 160.47p 156.80p 2.34
Mid-market price per Ordinary share 111.00p 113.00p -1.77
Discount of price to net asset value 30.83% 27.9% n/a
Total Return* 2.98% 6.5% n/a
IA Mixed Investment 40% - 85% Shares (total 3.66% 4.9% n/a
return)
MSCI AC World Index (total return, sterling 10.30% 9.5% n/a
adjusted)
MSCI UK Index (total return) 1.68% 8.3% n/a
1st July 2018 to 1st July 2017 to
30th June 2019 30th June 2018
Revenue return per Ordinary share 1.81p 1.17p
Capital return per share 2.86p 8.51p
Return per Ordinary share 4.67p 9.68p
TOTAL RETURN* 2.98% 6.5%
PROPOSED DIVIDEND PER ORDINARY SHARE 1.40p 1.00p
* The total return figure for the Group represents the revenue and capital
return shown in the consolidated statement of Comprehensive income plus
dividends paid (the Alternative performance measure).
CHAIRMAN'S STATEMENT
PERFORMANCE
Your Company's net asset value (NAV) total return was 3.0% over the year
to 30th June 2019. This took the year-end NAV per ordinary share to
160.47p. By comparison, the Investment Association's Mixed Investment
40-85% Shares index gained 3.7%. Your Directors believe this benchmark is
appropriate because your Company has, since inception, been invested in a
broad range of asset classes. In a volatile year, global equity markets
generated positive returns although European and Asian equities
underperformed US equities as a result of escalating trade tensions,
slowing economic growth and fears about the consequences of a "no deal"
Brexit. The MSCI AC World Total Return and MSCI UK Total Return Indices
gained 10.3% and 1.7% respectively while UK government bonds returned
5.2%. Further information is provided in the investment manager's report.
EARNINGS AND DIVIDEND
The revenue return for the year was 1.81p per share (2018: 1.17p). This
represents a substantial increase. Your directors do not envisage
increases of a similar magnitude in subsequent years. A performance fee of
0.58p per share (2018: nil) was deducted from capital.
Your Company has a revenue surplus in its retained revenue reserve,
enabling it to pay a dividend. Your directors recommend the payment of a
final dividend in respect of the year of 1.4p per share (2018: 1.0p).
OUTLOOK
Global economic growth slowed during 2019, with manufacturing suffering
more than services as a result of trade disputes and rising tariffs. The
US is seeking to maintain its technological supremacy so there may not be
an early end to its trade dispute with China. This may have a significant
effect on eurozone and Asian exporters while Brexit uncertainties may
continue to affect UK commercial and consumer confidence.
The decline in long-term bond yields relative to short-term bond yields
shows that investors fear the onset of recession. Major central banks have
sought to counter slowing economic growth through monetary easing but,
after a decade of such measures, further easing may prove to be less of a
stimulus than in the past. Your Company reduced its equity holdings over
the year and increased its holdings in cash. Investments in dollars, gold
equities and lower-risk multi-asset funds provide diversification and
potentially some protection if equity markets weaken.
CASH AND BORROWINGS
Your Company has no borrowings and ended its financial year with cash
representing 18.1% of its net asset value. Your Company is likely to
maintain a significant cash position.
The Company is a small registered Alternative Investment Fund Manager
under the European Union directive. The Company's assets now exceed the
threshold of EUR100 million. As a result, should it wish to borrow it
would require a change in regulatory permissions.
DISCOUNT
During the year, your Company's shares continued to trade at a significant
discount to their NAV. The Board keeps this issue under review.
ANNUAL MEETING
The Annual General Meeting will be held on Thursday, 14th November 2019 at
11am.
NET ASSET VALUE
Your Company's unaudited net asset value per share at 31st August 2019 was
162.91p.
INVESTMENT MANAGER'S REPORT
MARKET REVIEW
US monetary policy reached a watershed moment during your Company's
financial year. Starting in December 2015, the Federal Reserve had
tightened monetary policy through successive interest rate increases and
some reduction of its swollen balance sheet, culminating in December 2018,
when the Fed funds target rate rose to 2.25-2.50%. Global equities fell
10.57% in sterling over the final quarter of 2018, more than erasing the
previous quarter's gains because investors feared overly-restrictive
monetary policy might choke off economic growth. In a significant
volte-face, however, the Fed chairman, Jerome Powell, retreated from
earlier hawkish comments that interest rates were "a long way" from
neutral, saying rates were "close to" neutral. Confidence returned
following the Fed's U-turn, with global equities gaining 16.68% in
sterling in the six months to 30th June 2019 to end a volatile year up
10.30%. US equities outperformed, rising 14.54% in sterling, but European
and Asian equities underperformed.
Safe-haven assets were in demand as economic prospects deteriorated.
Global bonds rose 9.80% in sterling while UK government bonds and sterling
corporate bonds rose 5.23% and 6.83% respectively. The yield on 10-year US
treasury bonds fell from 2.85% to 2.20%, with investors looking forward to
US interest rate cuts. Gold rose 16.25% in sterling as the decline in bond
yields reduced the opportunity cost of holding this nil-yielding commodity
and investors sought safety from the potential debasement of some major
currencies through monetary easing.
The Fed changed tack because of slowing economic growth and below-target
inflation. US gross domestic product (GDP) rose 3.1% in 2018 but the rate
slowed to 2.2% in the final quarter as the impact of fiscal stimulus and
increased public sector spending faded. In August 2019, the Fed forecast
growth of 2.1% for 2019. The narrowing difference between short-dated and
long-dated US bond yields led some forecasters to be more pessimistic,
fearing a recession might be approaching.
In August, shortly after your Company's year end, the 10-year US treasury
bond yield fell below the two-year yield. This so-called "yield inversion"
has preceded every US recession in the last 40 years although some months
have typically elapsed between the inversion and the onset of recession.
US leading indicators for manufacturing and non-manufacturing sectors
weakened in the first eight months of 2019 and the manufacturing leading
indicator dipped to a level that implied output might fall. Consumer
spending, however, proved resilient as a result of low unemployment.
Employment data tend, however, to be lagging indicators. In August, the
Sino-US trade dispute escalated as both sides increased tariffs. US
tariffs have gained bipartisan support and are likely to become an
established feature of US trade policy, reducing the scope for an economic
boost if the impasse is resolved.
UK GDP expanded 0.5% quarter-on-quarter in the first quarter of 2019. GDP
did, however, fall 0.2% quarter-on-quarter in the second quarter,
according to the first estimate, probably as a result of activity having
been brought forward into the first quarter ahead of the first Brexit
deadline of 29th March. UK household spending continued to grow steadily
but leading indicators deteriorated and the potential disruption from a
no-deal Brexit may tip the UK into recession. Brexit-risks overshadowed UK
equities, rising only 1.68% over the year under review. UK smaller
companies did worse, falling 5.36% because they tend to be more reliant on
domestic earnings than larger companies, whose export and overseas
businesses benefitted from sterling weakness. In response to the increased
likelihood of a no-deal Brexit, sterling fell 3.60% and 6.23% respectively
against the dollar and yen.
Equities in Europe excluding UK rose only 8.18% in sterling over the year.
Eurozone manufacturers suffered from worsening global economic prospects
and the impact of trade disputes and tariffs. German GDP fell in the third
quarter of 2018 and the second quarter of 2019 as the manufacturing sector
contracted. In June, German industrial production fell 1.5% on the
previous month, leaving it down 5.20% over 12 months as vehicle production
was hit particularly hard.
Over the summer of 2019, investors expected the European Central Bank
(ECB) to ease monetary policy later this year. The scope for interest rate
cuts may be limited, however, because the ECB's deposit rate ended your
Company's year at -0.40%. Banks have typically refrained from passing on
the negative deposit rate to retail customers, reducing their profits.
Further cuts may be no more effective in encouraging bank lending so the
ECB may resort to more bond buying, the previous programme having ended in
2018. As a result of recent falls in bond yields, however, many Europe
excluding UK sovereign bonds were already trading on negative yields over
the summer and the ECB may encounter liquidity constraints.
During the year, equities in Asia excluding Japan and emerging markets
returned 3.55% and 5.40% respectively in sterling, held back by trade
disputes, with China, down 3.06% in sterling, particularly badly affected.
Chinese economic growth slowed as weak export demand was only partially
offset by increased infrastructure spending. Additional policy support
may, however, be forthcoming if trade talks stall. After the year-end, the
renminbi fell against the dollar, prompting the US to designate China a
currency manipulator. Renminbi-weakness generated fears of deflation in
August 2015 and January 2016, leading to sharp falls in some risky assets.
Within emerging markets, returns diverged widely. While Chinese equities
fell, Indian stocks rose 11.97% in sterling. The prime minister, Narendra
Modi, won a second term while the 16.15% oil price fall in sterling terms
benefitted India as an oil-importing economy. Russian equities rose 33.11%
in sterling as investors' fears of further sanctions proved unfounded for
now.
PORTFOLIO REVIEW
The total return of the Company was 2.98% for the year under review. By
comparison, the Investment Association's Mixed Investment 40-85% Shares
Index, which measures a peer group of funds with a multi-asset approach to
investing and a typical investment in global equities in the 40-85% range,
rose 3.66%.
The main reason for your Company's marginal underperformance relative to
the IA Mixed Investment 40-85% Shares Index was its relative lack of
exposure to Wall Street during a year in which US stocks outperformed.
Your company's largest holding, Fundsmith Equity, did, however, have the
majority of its assets in US stocks as did Polar Capital Technology. Both
outperformed the returns from US stocks, rising 18.48% and 16.03%
respectively. Fundsmith Equity holds a concentrated portfolio of large
companies held for the longer term. Its focus is on resilient companies
with high returns on capital employed and strong business models that are
difficult for competitors to replicate. This means future profits and cash
flows are relatively easy to predict.
Companies with these characteristics, regarded as "bond proxies", have
typically performed well since the credit crisis in an environment of
steady growth and low inflation. Many consumer staples companies such as
Philip Morris and Pepsico, which are among the top 10 holdings in
Fundsmith's portfolio, meet these criteria. In July 2019, the portfolio's
largest sector allocation was, however, technology, with Microsoft and
Facebook among the top 10 holdings. Both stocks are also top-10 holdings
in Polar Capital Technology. Your Company's Fundsmith Equity holding
increased in August 2018 while profits were taken in Polar Capital Global
Technology in September 2018.
By contrast with Fundsmith Equity, Artemis Global Income, which has a
value investment style, underperformed, falling 3.45% over the year. Its
largest holdings were in financial stocks, which were relatively weak
because the flattening yield curve damaged the profits of banks, which
typically borrow at lower short-term rates and lend for longer periods at
higher rates. Artemis Global Income does, however, have an above-average
yield because of its value bias, contributing to your Company's ability to
pay dividends. Value stocks have typically been out of favour since the
credit crisis and the valuation gulf widened over the year. Value stocks
may, however, outperform strongly should the macroeconomic outlook change
in their favour while delivering an attractive income in the meantime.
Aberforth Split Level Income, which invests in UK smaller companies and
has a value investment style, fell 18.42%, dragged down by fears of a "bad
Brexit", the greater sensitivity of smaller companies to the domestic UK
economy and investors' disenchantment with value investing. UK smaller
companies did, however, appear oversold over the summer of 2019 as a
result of investors' Brexit concerns while sterling's weakness may
increase their attractions to overseas investors.
Man GLG UK Income and Schroder Income fell 0.30% and 4.72% respectively as
a result of their bias towards value stocks although yields in excess of
5% contributed significantly to your Company's ability to pay an increased
dividend. Trojan Income outperformed, however, rising 4.18% partly because
of its bias towards defensive consumer goods companies such as Unilever.
BlackRock Continental European Income was the best performer amongst the
investments in Europe excluding UK equities, rising 7.60%. FP Crux
European Special Situations, up 1.40%, remained amongst your Company's top
10 holdings although profit-taking through sales in August and October
2018 realised more than half of the investment. Standard Life European
Equity Income returned 1.39%.
Among the Asian and emerging markets holdings, the HSBC Russia Capped
exchange-traded fund gained 32.29% as it benefitted from Russian equity
strength. Russian holdings also enhanced the returns from JP Morgan
Emerging Markets Income, up 14.45%, while Liontrust Asia Income also
outperformed, rising 4.62%. Stewart Investors Indian Subcontinent
underperformed, however, up only 1.65% because of its cautious approach
during a period of high local equity valuations.
Your company has diversified risk through investments in gold equities,
dollar cash and lower-risk multi-asset funds. Gold price strength fuelled
the 20.54% gain from BlackRock Gold & General. Your company also benefited
from dollar strength through Trojan and EF Brompton Global Conservative,
which both had significant dollar holdings in their multi-asset
portfolios. Trojan and EF Brompton Global Conservative gained 4.15% and
2.87% respectively.
During the year, your Company modestly increased investment in three
private companies, which have the potential to add an uncorrelated source
of return. The unquoted portfolio increased by more than £1 million after
allowing for sales and purchases. The investment in Embark, your Company's
largest unquoted investment, increased and the valuation has been written
up in response to the terms of a capital raising.
OUTLOOK
Global economic growth slowed over the summer of 2019, affected by US
monetary tightening in previous years and the fading of the impact of
President Trump's fiscal stimulus. The manufacturing sector was suffering
more than services as trade woes exacerbated worsening global economic
conditions. In the US, bipartisan support for tariffs aimed at Chinese
exports mean there may be no easy resolution of trade disputes as the US
seeks to maintain technological supremacy in key sectors such as
information technology and communications. The eurozone and some emerging
markets were more severely affected because of their dependence on exports
while the UK appeared vulnerable to a no-deal Brexit.
The flattening yield curve may imply a recession is approaching. The
Federal Reserve and some other major central banks have been seeking to
mitigate the impact of slowing growth through monetary easing. These
policies may, however, prove less effective than previously after more
than a decade of such measures. Your Company reduced the allocation to
global equities over the year and increased its investment in dollar cash.
Investments in dollar cash, gold equities and low-risk multi-asset funds
provide diversification and potentially some protection should equities
fall. Investments in a small number of private companies offer the
potential for uncorrelated returns.
SCHEDULE OF TWENTY LARGEST INVESTMENTS AT 30TH JUNE 2019
Bid-market
Holding Activity value Percentage of
net assets
£ '000
Fundsmith Equity Fund Investment Fund 7,839 6.88
Embark Group Unquoted 5,942 5.21
Investment
Polar Capital- Global Investment Fund 5,280 4.63
Technology Fund
FP Crux European Special Investment Fund 5,098 4.47
Situations Fund
Schroder Income Fund Investment Fund 4,795 4.21
EF Brompton Global Investment Fund 4,222 3.71
Conservative Fund
Artemis Global Income Fund Investment Fund 3,856 3.38
BlackRock Continental European Investment Fund 3,794 3.33
Income Fund
Aberforth Split Level Income Investment 3,747 3.29
Trust Company
Aquilus Inflection Fund Investment Fund 3,698 3.25
BlackRock Gold & General Fund Investment Fund 3,470 3.04
Lindsell Train Japanese Equity Investment Fund 3,144 2.76
Fund
EF Brompton Global Equity Fund Investment Fund 2,846 2.50
EF Brompton Global Investment Fund 2,840 2.49
Opportunities Fund
Man GLG UK Income Fund Investment Fund 2,767 2.43
Liontrust Asia Income Fund Investment Fund 2,763 2.42
First State Indian Investment Fund 2,750 2.41
Subcontinent Fund
EF Brompton Global Growth Fund Investment Fund 2,694 2.36
MI Brompton UK Recovery Unit Investment Fund 2,669 2.34
Trust
Trojan Income Fund Investment Fund 2,379 2.09
76,593 67.20
Balance not held in 20 17,189 15.08
investments above
Total investments (excluding 93,782 82.28
cash)
Cash 20,605 18.08
Other net current assets (416) (0.36)
Net assets 113,971 100.00
The investment portfolio, excluding cash, can be further analysed
as follows:
£ '000
Investment funds 78,453
Investment companies and exchange traded funds 7,133
Unquoted investments 7,386
Other quoted investments 810
93,782
SCHEDULE OF TWENTY LARGEST INVESTMENTS AT 30TH JUNE 2018
Bid-market
Holding Activity value Percentage of
net assets
£ '000
FP Crux European Special Investment Fund 11,237 10.09
Situations Fund
Polar Capital - Global Investment Fund 5,473 4.91
Technology Fund
Schroder Income Fund Investment Fund 5,242 4.71
Fundsmith Equity Fund Investment Fund 5,191 4.66
Aberforth Split Level Income Investment 4,859 4.36
Trust Company
Artemis Global Income Fund Investment Fund 4,120 3.70
EF Brompton Global Investment Fund 4,105 3.69
Conservative Fund
BlackRock Continental European Investment Fund 3,699 3.32
Income Fund
Aquilus Inflection Fund Investment Fund 3,562 3.20
Lindsell Train Japanese Equity Investment Fund 3,312 2.97
Fund
Embark Group Unquoted 3,268 2.93
Investment
Man GLG UK Income Fund Investment Fund 2,929 2.63
BlackRock Gold & General Fund Investment Fund 2,904 2.61
EF Brompton Global Investment Fund 2,785 2.50
Opportunities Fund
Liontrust Asia Income Fund Investment Fund 2,768 2.49
MI Brompton UK Recovery Unit Investment Fund 2,746 2.47
Trust
Stewart Investors Indian Investment Fund 2,706 2.43
Subcontinent Fund
EF Brompton Global Equity Fund Investment Fund 2,687 2.41
EF Brompton Global Growth Fund Investment Fund 2,630 2.36
Trojan Income Fund Investment Fund 2,384 2.14
78,607 70.58
Balance not held in 20 17,694 15.89
investments above
Total investments (excluding 96,301 86.47
cash)
Cash 15,027 13.49
Other net current assets 38 0.04
Net assets 111,366 100.00
The investment portfolio, excluding cash, can be further analysed
as follows:
£ '000
Investment funds 80,548
Investment companies and exchange traded funds 9,357
Unquoted investments, including interest bearing loans of 5,375
£250,000
Other quoted investments 1,021
96,301
STRATEGIC REVIEW
The Strategic Review is designed to provide information primarily about
the Company's business and results for the year ended 30th June 2019. The
Strategic Review should be read in conjunction with the Chairman's
Statement and the Investment Manager's Report above, which provide a
review of the year's investment activities of the Company and the outlook
for the future.
STATUS
The Company is an investment company under section 833 of the Companies
Act 2006. It is an Approved Company under the Investment Trust (Approved
Company) (Tax) Regulations 2011 (the 'Regulations') and conducts its
affairs in accordance with those Regulations so as to retain its status as
an investment trust and maintain exemption from liability to United
Kingdom capital gains tax.
The Company is a small registered Alternative Investment Fund Manager
under the European Union Markets in Financial Instruments Directive.
INVESTMENT OBJECTIVE AND POLICY
Investment Objective
The Company's investment objective is to achieve long-term capital growth.
Investment Policy
The Company's investment policy is to allocate assets to global investment
opportunities through investment in equity, bond, commodity, real estate,
currency and other markets. The Company's assets may have significant
weightings to any one asset class or market, including cash.
The Company will invest in pooled investment vehicles, exchange traded
funds, futures, options, limited partnerships and direct investments in
relevant markets. The Company may invest up to 15% of its net assets in
direct investments in relevant markets.
The Company will not follow any index with reference to asset classes,
countries, sectors or stocks. Aggregate asset class exposure to any one of
the United States, the United Kingdom, Europe ex UK, Asia ex Japan, Japan
or Emerging Markets and to any individual industry sector will be limited
to 50% of the Company's net assets, such values being assessed at the time
of investment and for funds by reference to their published investment
policy or, where appropriate, the underlying investment exposure.
The Company may invest up to 20% of its net assets in unlisted securities
(excluding unquoted pooled investment vehicles) such values being assessed
at the time of investment.
The Company will not invest more than 15% of its net assets in any single
investment, such values being assessed at the time of investment.
Derivative instruments and forward foreign exchange contracts may be used
for the purposes of efficient portfolio management and currency hedging.
Derivatives may also be used outside of efficient portfolio management to
meet the Company's investment objective. The Company may take outright
short positions in relation to up to 30% of its net assets, with a limit
on short sales of individual stocks of up to 5% of its net assets, such
values being assessed at the time of investment.
The Company may borrow up to 30% of net assets for short-term funding or
long-term investment purposes.
No more than 10%, in aggregate, of the value of the Company's total assets
may be invested in other closed-ended investment funds except where such
funds have themselves published investment policies to invest no more than
15% of their total assets in other listed closed-ended investment funds.
Information on the Company's portfolio of assets with a view to spreading
investment risk in accordance with its investment policy above.
FINANCIAL REVIEW
Net assets at 30th June 2019 amounted to £113,971,000 compared with
£111,366,000 at 30th June 2018. In the year under review, the NAV per
Ordinary share increased by 2.3% from 156.80p to 160.47p, after paying a
dividend of 1.0p per share.
The Group's gross revenue rose to £2,239,000 (2018: £1,776,000). Last year
the Company increased its investment in income focused funds resulting in
an increase in gross income during the year under review. After deducting
expenses and taxation the revenue profit for the year was £1,284,000
(2018: £831,000).
Total expenses for the year amounted to £1,364,000 (2018: £940,000), as a
result of a performance fee becoming payable. In the year under review the
investment management fee amounted to £688,000 (2018: £668,000). A
performance fee of £410,000 was payable in respect of the year under
review as the Company outperformed the cumulative hurdle rate. The
performance fee has been allocated to the Capital account in accordance
with the Company's accounting policy. At 30 June 2019 the Company's NAV
was slightly above the hurdle rate NAV. Further details on the Company's
expenses may be found in notes 3 and 4.
Dividends have not formed a central part of the Company's investment
objective. The increased investment in income focused funds has enabled
the Directors to declare an increased dividend. The Directors propose a
final dividend of 1.40p per Ordinary share in respect of the year ended
30th June 2019 (2018: 1.0p). If approved at the Annual General Meeting,
the dividend will be paid on 29th November 2019 to shareholders on the
register at the close of business on 8th November 2019 (ex-dividend 7th
November 2019).
The primary source of the Company's funding is shareholder funds.
While the future performance of the Company is dependent, to a large
degree, on the performance of international financial markets, which in
turn are subject to many external factors, the Board's intention is that
the Company will continue to pursue its stated investment objective in
accordance with the strategy outlined above. Further comments on the
short-term outlook for the Company are set out in the Chairman's Statement
and the Investment Manager's report above.
Throughout the year the Group's investments included seven funds managed
by the Investment Manager (2018: seven). No investment management fees
were payable directly by the Company in respect of these investments.
PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS
In order to measure the success of the Company in meeting its objectives,
and to evaluate the performance of the Investment Manager, the Directors
review at each meeting: net asset value, income and expenditure, asset
allocation and attribution, share price of the Company and the discount.
The Directors take into account a number of different indicators as the
Company does not have a formal benchmark, and performance against these is
shown in the Financial Highlights.
Performance is discussed in the Chairman's Statement and Investment
Manager's Report.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks identified by the Board, and the steps the Board takes
to mitigate them, are as follows:
Investment strategy
Inappropriate long-term strategy, asset allocation and fund selection
could lead to underperformance. The Board discusses investment
performance at each of its meetings and the Directors receive reports
detailing asset allocation, investment selection and performance.
Business conditions and general economy
The Company's future performance is heavily dependent on the performance
of different equity and currency markets. The Board cannot mitigate the
risks arising from adverse market movements. However, diversification
within the portfolio will reduce the impact. Further information is given
in portfolio risks below.
Portfolio risks - market price, foreign currency and interest rate risks
The twenty largest investments are listed above. Investment returns will
be influenced by interest rates, inflation, investor sentiment,
availability/cost of credit and general economic and market conditions in
the UK and globally. A significant proportion of the portfolio is in
investments denominated in foreign currencies and movements in exchange
rates could significantly affect their sterling value. The Investment
Manager takes all these factors into account when making investment
decisions but the Company does not normally hedge against foreign currency
movements. The Board's policy is to hold a spread of investments in order
to reduce the impact of the risks arising from the above factors by
investing in a spread of asset classes and geographic regions.
Net asset value discount
The discount in the price at which the Company's shares trade to net asset
value means that shareholders cannot realise the real underlying value of
their investment. Over the last few years the Company's share price has
been at a significant discount to the Company's net asset value. The
Directors review regularly the level of discount, however given the
investor base of the Company, the Board is very restricted in its ability
to influence the discount to net asset value.
Investment Manager
The quality of the team employed by the Investment Manager is an important
factor in delivering good performance and the loss of key staff could
adversely affect returns. A representative of the Investment Manager
attends each Board meeting and the Board is informed if any major changes
to the investment team employed by the Investment Manager are proposed.
Tax and regulatory risks
A breach of The Investment Trust (Approved Company) (Tax) Regulations 2011
(the 'Regulations') could lead to capital gains realised within the
portfolio becoming subject to UK capital gains tax. A breach of the UKLA
Listing Rules could result in suspension of the Company's shares, while a
breach of company law could lead to criminal proceedings, financial and/or
reputational damage. The Board employs Brompton Asset Management LLP as
Investment Manager, and Maitland Administration Services Limited as
Secretary and Administrator, to help manage the Company's legal and
regulatory obligations.
Operational
Disruption to, or failure of, the Investment Manager's or Administrator's
accounting, dealing or payment systems, or the Custodian's records, could
prevent the accurate reporting and monitoring of the Company's financial
position. The Company is also exposed to the operational risk that one or
more of its suppliers may not provide the required level of service.
The Directors confirm that they have carried out an assessment of the
risks facing the Company, including those that would threaten its business
model, future performance, solvency and liquidity.
VIABILITY STATEMENT
The assets of the Company consist mainly of securities that are readily
realisable or cash and it has no significant liabilities. Investment
income exceeds annual expenditure and current liquid net assets cover
current annual expenses for many years. Accordingly, the Company is of
the opinion that it has adequate financial resources to continue in
operational existence for the long term which is considered to be in
excess of five years. Five years is considered a reasonable period for
investors when making their investment decisions. In reaching this view
the Directors reviewed the anticipated level of annual expenditure against
the cash and liquid assets within the portfolio. The Directors have also
considered the risks the Company faces.
ENVIRONMENTAL, SOCIAL AND COMMUNITY ISSUES
The Company has no employees, with day-to-day management and
administration of the Company being delegated to the Investment Manager
and the Administrator. The Company's portfolio is managed in accordance
with the investment objective and policy; environmental, social and
community matters are considered to the extent that they potentially
impact on the Company's investment returns. Additionally, as the Company
has no premises, properties or equipment, it has no carbon emissions to
report on.
The Company has sought, wherever possible, and been provided with
assurance from each of its main suppliers, that no slaves, forced labour,
child labour, or labour employed at rates of pay below statutory minimums
for the country of their operations, are being employed in the provision
of services to the Company.
GENDER DIVERSITY
The Board of Directors comprises three male directors. The Board
recognises the benefits of diversity, however, the Board's primary
consideration when appointing new directors is their knowledge, experience
and ability to make a positive contribution to the Board's decision making
regardless of gender.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AT 30TH JUNE 2019
Year ended Year ended
30th June 2019 30th June 2018
Revenue Revenue
Return Capital Return Capital
Return Total Return Total
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Notes
INVESTMENT INCOME 2 1,890 - 1,890 1,654 - 1,654
Other operating 2 349 - 349 122 - 122
income
2,239 - 2,239 1,776 - 1,776
GAINS AND LOSSES ON
INVESTMENTS
Gains on investments
at fair value through
profit or loss 9 - 1,992 1,992 - 6,218 6,218
Other exchange gains - 443 443 - (176) (176)
/(losses)
Trail rebates - 5 5 - 5 5
2,239 2,440 4,679 1,776 6,047 7,823
EXPENSES
Management and 3 (688) (410) (1,098) (668) - (668)
performance fees
Other expenses 4 (266) - (266) (272) - (272)
(954) (410) (1,364) (940) - (940)
PROFIT BEFORE TAX 1,285 2,031 3,315 836 6,047 6,883
Tax 5 - - - (5) - (5)
PROFIT FOR THE YEAR 1,285 2,031 3,315 831 6,047 6,878
EARNINGS PER SHARE
Ordinary shares 7 1.81p 2.86p 4.67p 1.17p 8.51p 9.68p
(pence)
The total column of this statement represents the Group's profit and loss
account, prepared in accordance with IFRS, as adopted by the European
Union. The supplementary Revenue Return and Capital Return columns are
both prepared under guidance published by the Association of Investment
Companies. All revenue and capital items in the above statement derive
from continuing operations.
The Company did not have any income or expense that was not included in
'Profit for the year'. Accordingly, the 'Profit for the year' is also the
'Total comprehensive income for the year', as defined in IAS1 (revised)
and no separate Statement of Comprehensive Income has been presented.
No operations were acquired or discontinued during the year.
All income is attributable to the equity holders of the parent company.
There are no minority interests.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE
2019
Share Share Special Retained
premium reserve earnings
Note capital Total
£ '000 £ '000 £ '000
£ '000 £ '000
AT 30TH JUNE 2018 710 21,573 56,908 32,175 111,366
Total comprehensive income - - - 3,315 3,315
for the year
Dividend paid 8 - - - (710) (710)
AT 30TH JUNE 2019 710 21,573 56,908 34,780 113,971
Included within Retained earnings were £1,687,000 of Company reserves
available for distribution.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE
2018
Share Share Special Retained
premium reserve earnings
Note capital Total
£ '000 £ '000 £ '000
£ '000 £ '000
AT 30TH JUNE 2017 710 21,573 56,908 25,865 105,056
Total comprehensive income - - - 6,878 6,878
for the year
Dividend paid 8 - - - (568) (568)
AT 30TH JUNE 2018 710 21,573 56,908 32,175 111,366
Included within Retained earnings were £1,112,000 of Company reserves
available for distribution.
CONSOLIDATED BALANCE SHEET AT 30TH JUNE 2019
30th June 30th June
Notes 2019 2018
£ '000 £ '000
NON-CURRENT ASSETS
Investments at fair value through profit or loss 9 93,782 96,301
CURRENT ASSETS
Other receivables 11 220 272
Cash and cash equivalents 12 20,605 15,027
20,825 15,299
TOTAL ASSETS 114,607 111,600
CURRENT LIABILITIES
Other payables 13 (636) (234)
TOTAL ASSETS LESS CURRENT LIABILITIES 113,971 111,366
NET ASSETS 113,971 111,366
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
Called-up share capital 14 710 710
Share premium 15 21,573 21,573
Special reserve 15 56,908 56,908
Retained earnings 15 34,780 32,175
TOTAL EQUITY 113,971 111,366
NET ASSET VALUE PER ORDINARY SHARE 16 160.47p 156.80p
CONSOLIDATED CASH FLOW STATEMENTS AT 30TH JUNE 2019
Year ended Year ended
30th June 30th June
2019 2018
Group Group
Notes £ '000 £ '000
NET CASH INFLOW FROM OPERATING ACTIVITIES
1,334 673
INVESTING ACTIVITIES
Purchase of investments (4,340) (16,016)
Sale of investments 8,851 17,663
NET CASH INFLOW/(OUTFLOW) FROM INVESTING
ACTIVITIES
4,511 1,647
FINANCING
Equity dividends paid 8 (710) (568)
Amounts owed to subsidiary undertakings - -
NET CASH (OUTFLOW) AFTER FINANCING (710) (568)
INCREASE IN CASH 5,135 1,752
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN
CASH & CASH EQUIVALENTS
Increase in cash resulting from cash flows 5,135 1,752
Exchange movements 443 (176)
Movement in net funds 5,578 1,576
Net funds at start of the year 15,027 13,451
CASH & CASH EQUIVALENTS AT END OF YEAR 17 20,605 15,027
RECONCILIATION OF PROFIT BEFORE FINANCE COSTS
AND TAXATION TO NET CASH FLOW FROM OPERATING
ACTIVITIES
Profit before finance costs and taxation* 2 3,315 6,883
Gains on investments (1,992) (6,218)
Exchange differences (443) 176
Capital trail rebates (5) (5)
Net revenue gains before finance costs and
taxation
875 836
Decrease/(increase) in debtors 43 (187)
Increase in creditors 402 24
Taxation 9 (5)
Capital trail rebates 5 5
NET CASH INFLOW FROM OPERATING ACTIVITIES 1,334 673
*Includes dividends received in cash of £1,599,000 (£1,164,000),
accumulation income of £278,000 (2018: £381,000) and interest received of
£408,000 (2018: £42,000).
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2018
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with
International Financial Reporting Standards ('IFRS'). These comprise
standards and interpretations approved by the International Accounting
Standards Board ('IASB'), together with interpretations of the
International Accounting Standards and Standing Interpretations Committee
('IASC') that remain in effect, and to the extent that they have been
adopted by the European Union.
These financial statements are presented in pounds sterling, the Group's
functional currency, being the currency of the primary economic
environment in which the Group operates, rounded to the nearest thousand.
(a) Basis of preparation: The financial statements have been prepared on a
going concern basis. The principal accounting policies adopted are set out
below.
Where presentational guidance set out in the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies and Venture
Capital Trusts' ('SORP') issued by the Association of Investment Companies
('AIC') in November 2014 and updated in February 2018 with consequential
amendments is consistent with the requirements of IFRS, the Directors have
sought to prepare the financial statements on a basis compliant
with the recommendations of the SORP.
(b) Basis of consolidation: The consolidated financial statements include
the accounts of the Company and its subsidiary made up to 30th June 2019.
No statement of comprehensive income is presented for the parent company
as permitted by Section 408 of the Companies Act 2006.
The parent company is an investment entity as defined by IFRS 10 and
assets are held at their fair value. The consolidated accounts include
subsidiaries which are an integral part of the Group and not investee
companies.
Subsidiaries are consolidated from the date of their acquisition, being
the date on which the Company obtains control, and continue to be
consolidated until the date that such control ceases. The financial
statements of the subsidiary used in the preparation of the consolidated
financial statements are based on consistent accounting policies. All
intra-group balances and transactions, including unrealised profits
arising therefrom, are eliminated. Subsidiaries are valued at fair value,
which is considered to be their NAV in the accounts of the Company.
(c) Presentation of Statement of Comprehensive Income: In order to better
reflect the activities of an investment trust company and in accordance
with guidance issued by the AIC, supplementary information which analyses
the consolidated statement of comprehensive income between items of a
revenue and capital nature has been presented alongside the consolidated
statement of comprehensive income.
In accordance with the Company's Articles of Association, net capital
returns may not be distributed by way of a dividend. Additionally, the net
revenue profit is the measure the Directors believe is appropriate in
assessing the Group's compliance with certain requirements set out in the
Investment Trust (Approved Company) (Tax) Regulations 2011.
(d) Use of estimates: The preparation of financial statements requires the
Group to make estimates and assumptions that affect items reported in the
consolidated and company balance sheets and consolidated statement of
comprehensive income and the disclosure of contingent assets and
liabilities at the date of the financial statements. Although these
estimates are based on the Directors' best knowledge of current facts,
circumstances and, to some extent, future events and actions, the Group's
actual results may ultimately differ from those estimates, possibly
significantly. The most significant estimate relates to the valuation of
unquoted investments.
(e) Revenue: Dividends and other such revenue distributions from
investments are credited to the revenue column of the consolidated
statement of comprehensive income on the day in which they are quoted
ex-dividend. Where the Company has elected to receive its dividends in
the form of additional shares rather than in cash and the amount of the
cash dividend is recognised as income, any excess in the value of the
shares received over the amount recognised is credited to the capital
reserve. Deemed revenue from offshore funds is credited to the revenue
account. Interest on fixed interest securities and deposits is accounted
for on an interest rate basis.
(f) Expenses: Expenses are accounted for on an accruals basis. Management
fees, administration and other expenses, with the exception of transaction
charges, are charged to the revenue column of the consolidated statement
of comprehensive income. Performance fees and transaction charges are
charged to the capital column of the consolidated statement of
comprehensive income.
(g) Investments held at fair value: Purchases and sales of investments are
recognised and derecognised on the trade date where a purchase or sale is
under a contract whose terms require delivery within the timeframe
established by the market concerned, and are initially measured at fair
value.
All investments are classified as held at fair value through profit or
loss on initial recognition and are measured at subsequent reporting dates
at fair value, which is either the bid price or the last traded price,
depending on the convention of the exchange on which the investment is
quoted. Investments in units of unit trusts or shares in OEICs are valued
at the bid price for dual priced funds, or single price for non-dual
priced funds, released by the relevant investment manager. Unquoted
investments are valued by the Directors at the balance sheet date based on
recognised valuation methodologies, in accordance with International
Private Equity and Venture Capital ('IPEVC') Valuation Guidelines such as
dealing prices or third party valuations where available, net asset values
and other information as appropriate.
(h) Taxation: The charge for taxation is based on taxable income for the
year. Withholding tax deducted from income received is treated as part of
the taxation charge against income. Taxation deferred or accelerated can
arise due to temporary differences between the treatment of certain items
for accounting and taxation purposes. Full provision is made for deferred
taxation under the liability method on all temporary differences not
reversed by the Balance Sheet date. No deferred tax provision is made
against deemed reporting offshore funds. Deferred tax assets are only
recognised when there is more likelihood than not that there will be
suitable profits against which they can be applied.
(i) Foreign currency: Assets and liabilities denominated in foreign
currencies are translated at the rates of exchange ruling at the balance
sheet date. Foreign currency transactions are translated at the rates of
exchange applicable at the transaction date. Exchange gains and losses
are taken to the revenue or capital column of the consolidated statement
of comprehensive income depending on the nature of the underlying item.
(j) Capital reserve: The following are accounted for in this reserve:
- gains and losses on the realisation of investments together with the
related taxation effect;
- foreign exchange gains and losses on capital transactions, including
those on settlement, together with the related taxation effect;
- revaluation gains and losses on investments;
- performance fees payable to the investment manager; and
- trail rebates received from the managers of the Company's investments.
The capital reserve is not available for the payment of dividends.
(k) Revenue reserve: This reserve includes net revenue recognised in the
revenue column of the Statement of Comprehensive Income.
(l) Special reserve: The special reserve can be used to finance the
redemption and/or purchase of shares in issue.
(m) Cash and cash equivalents: Cash and cash equivalents comprise current
deposits and balances with banks. Cash and cash equivalents may be held
for the purpose of either asset allocation or managing liquidity.
(n)Dividends payable: Dividends are recognised from the date on which they
are irrevocably committed to payment.
(o) Segmental Reporting: The Directors consider that the Group is engaged
in a single segment of business with the primary objective of investing in
securities to generate long term capital growth for its shareholders.
Consequently no business segmental analysis is provided.
(p) New standards, amendments to standards and interpretations effective
for annual accounting periods beginning after 1 July 2018:
The following amendments to standards effective this year, being relevant
and applicable to the Company, have been adopted, although they have no
impact on the financial statements:
- IFRS 7 Financial Instruments: disclosures for initial application of
IFRS 9 - effective 1 January 2016 or when IFRS 9 is first applied
- IFRS 9 Financial Instruments - effective 1 January 2018
- IFRS 15 Revenue from Contracts with Customers - effective 1 January 2018
(q) Accounting standards issued but not yet effective: There are no
standards or amendments to standards not yet effective that are relevant
to the Group and should be disclosed.
2. INVESTMENT INCOME
Year ended Year ended
30th June 30th June
2019 2018
£ '000 £ '000
INCOME FROM INVESTMENTS
UK net dividend income 1,691 1,481
Unfranked investment income 199 173
1,890 1,654
OTHER OPERATING INCOME
Bank interest receivable 336 111
Loan interest income 13 11
349 122
TOTAL INCOME COMPRISES
Dividends 1,890 1,654
Other income 349 122
2,239 1,776
The above dividend and interest income has been included in the profit
before finance costs and taxation included in the cash flow statements.
3. MANAGEMENT FEES
Year ended Year ended
30th June 2019 30th June 2018
Revenue Capital Total Revenue Capital Total
£ '000 £ '000
£ '000 £ '000 £ '000 £ '000
Investment management fee 688 - 688 668 - 668
Performance fee - 410 410 - - -
688 410 1,098 668 - 668
At 30th June 2019 there were amounts accrued of £177,000 (2018: £173,000)
for investment management fees and £410,000 (2018: £nil) for performance
fees.
4. OTHER EXPENSES
Year ended Year ended
30th June 30th June
2019 2018
£ '000 £ '000
Directors' remuneration 50 48
Administrative and secretarial fee 95 94
Auditors' remuneration
- Audit 32 31
- Interim review 8 8
Taxation compliance services 7 -
Other 74 91
266 272
Allocated to:
- Revenue 266 272
- Capital - -
266 272
5. TAXATION
(a) Analysis of tax charge for the year:
Year ended Year ended
30th June 2019 30th June 2018
Revenue
Return Capital Revenue Capital
Return Return Return
£ '000 £ '000 Total £ '000 Total
£ '000 £ '000 £ '000
Overseas tax 3 - 3 17 - 17
Recoverable income tax (3) - (3) (12) - (12)
Total current tax for the - - - 5 - 5
year
Deferred tax - - - - - -
Total tax for the year - - - 5 - 5
(note 5b)
(b) Factors affecting tax charge for the year:
The charge for the year of £nil (2018: £5,000) can be reconciled to the
profit per the consolidated statement of comprehensive income as follows:
Year ended Year ended
30th June 30th June
2019 2018
£ '000 £ '000
Total profit before tax 3,315 6,883
Theoretical tax at the UK corporation tax rate of 630 1,307
19.00% (2018: 19.00%)
Effects of:
Non-taxable UK dividend income (321) (281)
Gains and losses on investments that are not taxable (463) (1,148)
Excess expenses not utilised 154 138
Overseas dividends which are not taxable - (16)
Overseas tax 3 17
Recoverable income tax (3) (12)
Total tax for the year - 5
Due to the Company's tax status as an investment trust and the intention
to continue meeting the conditions required to maintain approval of such
status in the foreseeable future, the Company has not provided tax on any
capital gains arising on the revaluation or disposal of investments.
There is no deferred tax (2018: £nil) in the capital account of the
Company. There is no deferred tax charge in the revenue account (2018:
£nil).
At the year-end there is an unrecognised deferred tax asset of £520,000
(2018: £478,000) based on the enacted tax rates of 17% for financial years
beginning 1 April 2020, as a result of excess expenses.
6. COMPANY RETURN FOR THE YEAR
The Company's total return for the year was £3,315,000 (2018: £6,878,000).
7. RETURN PER ORDINARY SHARE
Total return per Ordinary share is based on the Group total return on
ordinary activities after taxation of £3,315,000 (2018: £6,878,000) and on
71,023,695 (2018: 71,023,695) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the year.
Revenue return per Ordinary share is based on the Group revenue profit on
ordinary activities after taxation of £1,285,000 (2018: £831,000) and on
71,023,695 (2018: 71,023,695) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the year.
Capital return per Ordinary share is based on net capital gains for the
year of £2,031,000 (2018: £6,047,000) and on 71,023,695 (2018: 71,023,695)
Ordinary shares, being the weighted average number of Ordinary shares in
issue during the year.
8. DIVIDENDS ON EQUITY SHARES
Amounts recognised as distributions in the year:
Year ended Year ended
30th June 30th June
2019 2018
£ '000 £ '000
Dividends paid during the year 710 568
Dividends payable in respect of the year ended:
30th June 2019: 1.4p (2018: 1.0p) per share 994 710
It is proposed that a dividend of 1.4p per share will be paid in respect
of the current financial year.
9. INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
Year ended Year ended
30th June 30th June
2019 2018
£ '000 £ '000
GROUP AND COMPANY 93,782 96,301
ANALYSIS OF INVESTMENT
PORTFOLIO - GROUP AND COMPANY
Quoted* Unquoted Total
£ '000 £ '000 £ '000
Opening book cost 61,574 7,582 69,156
Opening investment holding gains/(losses) 29,351 (2,206) 27,145
Opening valuation 90,925 5,376 96,301
Movement in period
Purchases at cost 3,224 1,116 4,340
Sales
- Proceeds (8,601) (250) (8,851)
- Realised gains on sales 4,175 - 4,175
Movement in investment holding gains for the year (3,327) 1,144 (2,183)
Closing valuation 86,396 7,386 93,782
Closing book cost 60,372 8,448 68,820
Closing investment holding gains/(losses) 26,024 (1,062) 24,962
Closing valuation 86,396 7,386 93,782
* Quoted investments include unit trust and OEIC funds and one monthly
priced fund.
Year ended Year ended
30th June 30th June
2019 2018
£ '000 £ '000
ANALYSIS OF CAPITAL GAINS AND LOSSES
Realised gains on sales of investments 4,175 7,457
(Decrease)/Increase in investment holding gains (2,183) (1,239)
Net gains on investments attributable to ordinary 1,992 6,218
shareholders
Transaction costs
The purchase and sale proceeds figures above include transaction costs on
purchases of £3,260 (2018: £8,870) and on sales of £638 (2018: £626).
10. INVESTMENT IN SUBSIDIARY UNDERTAKING
The Company owns the whole of the issued share capital (£1) of JIT
Securities Limited, a company registered in England and Wales.
The financial position of the subsidiary is summarised as follows:
Year ended Year ended
30th June 30th June
2019 2018
£ '000 £ '000
Net assets brought forward 506 504
Profit for year - 2
Net assets carried forward 506 506
11. OTHER RECEIVABLES
30th June 30th June
2019 2018
Group Group
£ '000 £ '000
Prepayments and accrued income 214 257
Taxation 6 15
Amounts owed by subsidiary undertakings - -
220 272
12. CASH AND CASH EQUIVALENTS
30th June 30th June
2019 2018
Group Group
£ '000 £ '000
Cash at bank and on deposit 20,605 15,027
13. OTHER PAYABLES
30th June 30th June
2019 2018
Group Group
£ '000 £ '000
Accruals 636 234
Amounts owed to subsidiary undertakings - -
636 234
14. CALLED UP SHARE CAPITAL
30th June 30th June
2019 2018
£ '000 £ '000
Authorised
305,000,000 (2018: 305,000,000) Ordinary shares of 3,050 3,050
£0.01 each
Issued and fully paid
71,023,695 (2018: 71,023,695) Ordinary shares of £0.01 710 710
each
15. RESERVES
Share Special Retained
Premium Reserve earnings
account
£ '000 £ '000 £ '000
GROUP
At 30th June 2018 21,573 56,908 32,175
Decrease in investment holding gains - - (2,183)
Net gains on realisation of investments - - 4,175
Gains on foreign currency - - 443
Performance fee - - (410)
Trail rebates - - 5
Retained revenue profit for year - - 1,285
Dividend paid (710)
At 30th June 2019 21,573 56,908 34,780
The components of retained earnings are set out below:
30th June 30th June
2019 2018
£ '000 £ '000
GROUP
Capital reserve - realised 7,977 3,764
Capital reserve - revaluation 24,962 27,145
Revenue reserve 1,841 1,266
34,780 32,175
COMPANY
Capital reserve - realised 7,625 3,412
Capital reserve - revaluation 25,468 27,651
Revenue reserve 1,687 1,112
34,780 32,175
16. NET ASSET VALUE PER ORDINARY SHARE7
The net asset value per Ordinary share is calculated on net assets of
£113,971,000 (2018: £111,366,000) and 71,023,695 (2018: 71,023,695)
Ordinary shares in issue at the year end.
17. ANALYSIS OF CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
At 1st July At 30th June
2018 Cash flow Exchange 2019
movement
£ '000 £ '000
GROUP
Cash at bank and 15,027 5,135 443 20,605
on deposit
18. FINANCIAL INFORMATION
2019 Financial information
The figures and financial information for 2019 are unaudited and do not
constitute the statutory accounts for the year. The preliminary statement
has been agreed with the Company's auditors and the Company is not aware
of any likely modification to the auditor's report required to be included
with the annual report and accounts for the year ended 30th June 2019.
2018 Financial information
The figures and financial information for 2018 are extracted from the
published Annual Report and Accounts for the year ended 30th June 2018 and
do not constitute the statutory accounts for that year. The Annual Report
and Accounts (available on the Company's website 1 www.nsitplc.com) has
been delivered to the Registrar of Companies and includes the Report and
Independent Auditors which was unqualified and did not contain a statement
under either section 498(2) or section 498(3) of the Companies Act 2006.
Annual Report and Accounts
The accounts for the year ended 30th June 2019 will be sent to
shareholders in October 2019 and will be available on the Company's
website or in hard copy format at the Company's registered office, 1
Knightsbridge Green, London SW1X 7QA.
The Annual General Meeting of the Company will be held on 14th November
2019 at 11.00am at 1 Knightsbridge Green, London SW1X 7QA.
27th September 2019
══════════════════════════════════════════════════════════════════════════
ISIN: GB0002631041
Category Code: ACS
TIDM: NSI
LEI Code: 213800RT2OZF83G5N590
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 21671
EQS News ID: 881849
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
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