REG-New Star Investment Trust PLC New Star Investment Trust PLC: Annual Results for the year ended 30th June 2020
30/09/2020 12:10
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New Star Investment Trust PLC (NSI)
New Star Investment Trust PLC: Annual Results for the year ended 30th June
2020
30-Sep-2020 / 12:05 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 2020
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 2020.
FINANCIAL HIGHLIGHTS
30th June 30th June %
2020 2019 Change
PERFORMANCE
Net assets (£ '000) 113,885 113,971 (0.1)
Net asset value per Ordinary share 160.35p 160.47p (0.1)
Mid-market price per Ordinary share 106.00p 111.00p (4.5)
Discount of price to net asset value 33.9% 30.83% n/a
Total Return* 0.80% 2.98% n/a
IA Mixed Investment 40% - 85% Shares (total (0.15)% 3.66% n/a
return)
MSCI AC World Index (total return, sterling 5.72% 10.30% n/a
adjusted)
MSCI UK Index (total return) (15.21)% 1.68% n/a
1st July 2019 to 1st July 2018 to
30th June 2020 30th June 2019
Revenue return per Ordinary share 1.87p 1.81p
Capital return per share (0.59)p 2.86p
Return per Ordinary share 1.28p 4.67p
TOTAL RETURN* 0.80% 2.98%
PROPOSED DIVIDEND PER ORDINARY SHARE 1.40p 1.40p
* The total return figure for the Group represents the revenue and capital
return shown in the Consolidated Statement of Comprehensive Income divided
by the net asset value at the beginning of the period.
CHAIRMAN'S STATEMENT
PERFORMANCE
Your Company generated a positive total return of 0.80% over the year to
30th June 2020, taking the net asset value (NAV) per ordinary share to
160.35p. By comparison, the Investment Association's Mixed Investment
40-85% Shares Index fell 0.15%. The MSCI AC World Total Return Index rose
5.72% while the MSCI UK Total Return Index fell 15.21%. Over the year, UK
government bonds returned 11.98%. Further information is provided in the
investment manager's report.
Your Company made a revenue profit for the year of £1.32 million (2019:
£1.28 million).
GEARINGS AND DIVIDEND
Your Company has no borrowings. It ended the year under review with cash
representing 9.63% of its NAV and is likely to maintain a significant cash
position. In respect of the financial year to 30th June 2020, your
Directors recommend the payment of a dividend of 1.4p per share (2019:
1.4p). The level of future dividends may, in the short term, be adversely
affected by Covid-19-related dividend cuts.
DISCOUNT
During the year under review, your Company's shares continued to trade at
a significant discount to their NAV. The Board keeps this issue under
review.
PERFORMANCE FEE
In November 2019, your Company announced that the arrangement for
performance fees was not appropriate in a low interest rate environment,
with the result that the existing performance fee arrangement ceased from
1st January 2020. A performance fee of £623,000 (2019: £410,000) was
payable in respect of the year to 30th June 2020.
OUTLOOK
Over the late summer of 2020, equities appeared attractive for long-term
investors, supported by large-scale monetary and fiscal stimulus measures.
By July, leading indicators for some of the world's major economies had
risen significantly from their lows, implying that a global economic
recovery was on the horizon, and there was some positive news on vaccines
and treatments for Covid-19. Corporate bonds may also perform well as
yield spreads over sovereign bonds narrow. Resurgent Covid-19 infection
rates in some countries, tense Sino-US relations and the approaching US
election may, however, lead to renewed short-term weakness. Shortly after
the year end, your Company took some profits from investments in equity
funds because of uncertainty regarding the spread of Covid-19.
ANNUAL GENERAL MEETING
The annual general meeting will be held on 12 November 2020.
NET ASSET VALUE
Your Company's unaudited net asset value per share at 31st August 2020 was
162.94p.
INVESTMENT MANAGER'S REPORT
MARKET REVIEW
The Covid-19 pandemic and the impact of lockdowns to contain the spread of
the virus dominated financial markets during the second half of your
Company's financial year. Global equities fell 25.33% in sterling from
their high on 20th February 2020 to their 16th March low. Global equities
recovered, however, during the final quarter, extending the 4.89% gain in
sterling at the interim stage to close the year up 5.72%. The
announcements by central banks and governments of large-scale monetary and
fiscal stimulus measures softened the impact of the lockdowns on
businesses and households and reassured investors.
..
Global bonds outperformed equities over the year, rising 7.35% in sterling
as leading central banks cut interest rates to near-zero and increased
quantitative easing. UK government bonds were particularly strong,
returning 11.98%. Interest rates are likely to remain low for some time.
In March, the yield spreads of corporate and high-yield bonds widened over
sovereign bond yields as investors anticipated more businesses would
default, particularly in the hard-pressed energy, retail and travel and
leisure sectors. The Fed expanded its asset purchase programme to include
corporate bonds, leading to improved liquidity and lower yields overall.
Sterling corporate and high-yield bonds returned 6.52% and 0.62%
respectively over the year.
US equities outperformed, returning 10.73% in sterling, buoyed by the
41.67% rise by US technology stocks. Technology companies benefitted from
their strong balance sheets and an acceleration in the established trends
towards home working and online shopping and entertainment.
UK equities lagged, falling 15.21% as the London market's heavy weighting
in cyclical sectors such as energy, financials and industrials proved a
headwind. Uncertainty regarding European Union-UK trade negotiations also
weighed on stocks as the government allowed the 30th June deadline for a
request to extend the Brexit transition period to lapse. Sterling lost
2.92%, 2.78% and 1.57% respectively against the dollar, yen and euro.
Equities in Europe excluding the UK underperformed, falling 3.50% in
sterling on fears that fiscally-prudent northern countries might oppose an
EU rescue package that included grants rather than loans to
heavily-indebted southern countries. Such a deal was, however, agreed
shortly after your Company's year-end. Equities in Asia excluding Japan
and emerging markets also lagged, rising 5.03% and falling 0.14%
respectively in sterling despite a leading indicator suggesting China
would emerge strongly from the crisis. Sino-US relations deteriorated as
Beijing passed a new security law governing Hong Kong and the US
retaliated by revoking Hong Kong's special status under US law.
Oil prices fell 63.66% in sterling as lower demand during the lockdowns
compounded the impact of the Russo-Saudi oil price war. By contrast, gold
rose 29.44% in sterling, benefitting from safe-haven buying and the lower
opportunity cost of holding this nil-yielding asset in an environment of
near-zero interest rates.
PORTFOLIO REVIEW
Your Company's total return over the year under review was 1.34% before
performance fees and 0.80% after performance fees. By comparison, the
Investment Association's Mixed Investment 40-85% Shares sector, comprising
a peer group of multi-asset funds that typically invest 40-85% of their
assets in global equities, fell 0.15%. The MSCI AC World Total Return
Index rose 5.72% in sterling while the MSCI UK Total Return Index fell
15.21%. Your Company benefitted from strong performance by investments in
technology and gold mining.
Performance was, however, held back by poor performance by UK equities and
a relatively low investment in global bonds.
Polar Capital Global Technology made the biggest positive contribution to
your Company's performance, rising 39.78% over the year. The fund
increased in size from $3.4 billion to $5.8 billion, with inflows
totalling $1.1 billion. In response, Polar Capital soft-closed the fund in
July, with the result that only existing investors such as your Company
may add to their holdings. Fundsmith Equity, your Company's largest
investment, also benefitted from the strong performance of technology
stocks, which account for a significant proportion of its portfolio, with
Facebook and Microsoft among its 10 largest holdings. At the year end,
prospects for technology companies remained bright although increasing
regulatory pressures were a potential headwind. In June, the European
Commission opened two anti-trust investigations into Apple; in July, the
chief executives of Amazon, Apple, Facebook and Google were invited to
testify before Congress as part of an anti-trust investigation.
Underperformance by UK equities detracted from performance. Investments in
UK equity income funds have contributed significantly to your Company's
income and capacity to pay dividends. The UK equity income allocation
increased in November 2019 through an additional purchase of Chelverton UK
Equity Income. In March, following market falls, the UK equity allocation
increased further through the purchase of the SPDR UK FTSE All-Share
exchange-traded fund. In May, following a partial recovery by UK stocks
from their March through, Schroder Income, which invests in UK equities,
was sold in favour of Baillie Gifford Global Income Growth.
Higher-yielding UK stocks fell as dividends were cancelled, cut or
deferred. Dividends from UK stocks are expected to fall more than in the
US and mainland Europe because of the London market's relatively high
weighting in cyclical sectors such as financials and energy. In March, the
Prudential Regulation Authority, the banking regulator, said the seven
largest UK banks would suspend dividends and buybacks until the end of
2020. BP and Royal Dutch Shell, which accounted for a significant
proportion of all dividends paid by UK companies, cut their dividends. In
the case of Royal Dutch Shell, this was for the first time since the
Second World War. Aberforth Split Level Income was the portfolio's worst
performer, falling 35.14% as declines by UK stocks were compounded by the
manager's out-of-favour value style of investing and gearing resulting
from its zero dividend preference shares. Man GLG UK Income fell 15.61%
but Trojan Income, down only 5.58%, proved more resilient as a result of
its holdings in defensive consumer stocks such as Reckitt Benckiser and
Unilever.
BlackRock Gold & General, up 43.95%, was the second largest positive
contributor to your Company's returns. Gold mining profits are highly
sensitive to gold price movements and bullion benefitted over the year
from safe-haven buying and fears that large-scale monetary easing might
result in the debasement of fiat currencies.
Amongst your Company's lower-risk investments, Aquilus Inflection, a
euro-hedged long/short equity fund, rose 10.21% while Trojan, a
multi-asset fund with investments in defensive equities, inflation-linked
bonds, gold and cash, rose 7.52%. An investment in Chelsea Managed Monthly
Income, which has a multi-asset portfolio, was purchased to provide
further diversification and an income.
Your Company has a significant allocation to cash, held primarily in
dollars. It benefitted, therefore, from the dollar's 3.0% rise against
sterling over the year.
At the year end, your Company's private equity holdings represented
approaching 7.5% of its portfolio. Its investment in the Embark financial
services group represented more than 80% of the value of the unquoted
holdings. Following the completion of two successful equity issues to
finance two acquisitions, the Embark holding was written up by 17.5% to
reflect the latest external fundraising.
OUTLOOK
Over the late summer of 2020, the outlook for equities remained positive
given the monetary and fiscal support in place and the possibility that
further stimulus measures might be forthcoming, particularly in the US. By
July, leading indicators for some of the world's major economies had risen
significantly, implying that a global economic recovery was on the
horizon. Your Company did, however take some profits from investments in
equity funds shortly after the year end because of uncertainty regarding
the spread of Covid-19. In June, the World Health Organisation warned the
worst could be to come.
SCHEDULE OF LARGEST HOLDINGS AT 30TH JUNE 2020
Market Purchases/ Market Market
value 30 Sales movement value 30
June 2019 June 2020 % of net
assets
£'000 £'000
£'000 £'000
Fundsmith Equity Fund 7,839 - 722 8,561 7.52
Polar Capital Global 5,280 - 2,101 7,381 6.48
Technology
Embark Group 5,942 - 1,048 6,990 6.14
SPDR FTSE UK All Share - 5,008 536 5,544 4.87
BlackRock Gold & General 3,470 - 1,515 4,985 4.38
TM Crux European Special 5,098 - (177) 4,921 4.32
Situations Fund
EF Brompton Global 4,222 - 136 4,358 3.83
Consecutive Fund
Aquilus Infection Fund 3,698 - 378 4,076 3.58
BlackRock Continental 3,794 - 137 3,931 3.45
European Income Fund
Lindsell Train Japanese 3,144 - 387 3,531 3.10
Equity Fund
Artemis Global Income 3,856 - (495) 3,361 2.95
Fund
Baillie Gifford Global - 3,200 154 3,354 2.95
Income Growth
MI Chelverton UK Equity 1,487 2,500 (974) 3,013 2.65
Income Fund
EF Brompton Global Equity 2,846 - 126 2,972 2.61
Fund
EF Brompton Global 2,840 - 83 2,923 2.57
Opportunities Fund
EF Brompton Global Growth 2,694 - 64 2,758 2.42
Fund
Liontrust Asia Income 2,763 - (141) 2,622 2.30
Fund
First State Indian 2,750 - (304) 2,446 2.15
Subcontinent Fund
MI Brompton UK Recovery 2,669 - (352) 2,317 2.03
Unit Trust
EF Brompton Global 2,246 - 68 2,314 2.03
Balanced Fund
Aberforth Split Level 3,747 - (1,494) 2,253 1.98
Income Trust
Man GLG UK Income Fund 2,767 - (561) 2,206 1.94
Trojan Income Fund 2,379 - (215) 2,164 1.90
Schroder Income Fund 4,795 (3,272) (1,523) _____- ____-
80,326 7,436 1,219 88,981 78.15
Balance not held in 13,456 2,009 (1,431) 14,034 12.32
investments above
Total investments 93,782 9,445 (212) 103,015 90.47
(excluding cash)
Cash 20,605 (9,769) 126 10,962 9.63
Other net current assets (416) 324 - (92) (0.08)
113,971 - (86) 113,885 100.00
The investment portfolio, excluding cash, can be further analysed as
follows:
£ '000
Investment funds 83,363
Investment companies and exchange traded funds 10,642
Unquoted investments 8,468
Other quoted investments 542
103,015
STRATEGIC REVIEW
The Strategic Review is designed to provide information primarily about
the Company's business and results for the year ended 30th June 2020. The
Strategic Review should be read in conjunction with the Chairman's
Statement and the Investment Manager's Report, 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.
PURPOSE CULTURE AND VALUES
The Directors acknowledge the expectation under the Code that they
formally define a purpose for the Company. The Directors have reviewed
this requirement and consider that the Company's purpose is to deliver the
Company's stated investment objective to achieve long-term capital growth
for the benefit of its investors.
Similarly, the Directors have also considered the Company's culture and
values in line with Code requirements. The Board has formed the view that
as the Company has no direct employees, and with operational management
outsourced to the Investment Manager, the Administrator and the Company
Secretary, the Company's culture and values have to be those of the
Board. Having a stable composition and established working practices, the
Board is defined by experienced membership, trust and robust investment
challenge. These are therefore the key characteristics of the Company's
culture and values.
STAKEHOLDER RESPONSIBILITIES (S.172 STATEMENT UNDER COMPANIES ACT 2006)
The Directors are aware of their responsibilities to stakeholders under
both the Code and legislation through regular governance updates from the
Company Secretary. As a UK listed investment trust, the Directors
outsource operational management of the Company, including day to day
management of the investment portfolio, to third parties. As a
consequence, the Directors consider their key stakeholder groups to be
limited to the Company's shareholders, its third party advisers and
service providers, and individual board members.
The Company's Articles of Association, the Board's commitment to follow
the principles of the UK Corporate Governance Code issued by the Financial
Reporting Council in July 2018 ('the code') and the involvement of the
independent Company Secretary in board matters enable the Directors to
meet their responsibilities towards individual shareholder groups and
board members. Governance procedures are in place which allow both
investors and directors to ask questions or raise concerns appropriately.
The Board is satisfied that those governance procedures mean the Company
can act fairly between individual shareholders and takes account of Mr
Duffield's significant shareholding. In considering the payment of the
minimum dividend required to maintain investment trust tax status, the
recommendations to vote in favour of the resolutions at the AGM, the
change to the performance fee arrangements and the provision of temporary
liquidity facilities, the Board assessed the potential benefits to
shareholders and the manager of the investment portfolio.
The Board also regularly considers the performance of its independent
third party service providers. Those third party service providers in turn
have regular opportunities to report on matters meriting the attention of
the Board, including in relation to their own performance. The Board is
therefore confident that its responsibilities to each of its key
stakeholder groups are being discharged effectively.
As the Company does not have any employees, the Board does not consider it
necessary to establish means for employee engagement with the Board as
required by the latest version of the Code.
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.
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 is set out above.
FINANCIAL REVIEW
Net assets at 30th June 2020 amounted to £113,885,000 compared with
£113,971,000 at 30th June 2019. In the year under review, the NAV per
Ordinary share decreased by 0.1% from 160.47p to 160.35p, after paying a
dividend of 1.4p per share.
The Group's gross revenue increased to £2,419,000 (2019: £2,239,000). In
2019 and 2020 the Company increased its investment in income focused funds
resulting in an increase in gross income in both years. The year under
review was not impacted significantly by the Covid-19 pandemic. After
deducting expenses and taxation, the revenue profit for the year was
£1,325,000 (2019: £1,285,000).
Total expenses for the year amounted to £1,717,000 (2019: £1,364,000),
mainly as a result of an increased performance fee becoming payable. In
the year under review the investment management fee amounted to £697,000
(2019: £688,000). A performance fee of £623,000 (2019; £410,000) was
payable in respect of the year under review. The performance fee has been
allocated to the Capital account in accordance with the Company's
accounting policy. Further details on the Company's expenses may be found
in notes 3 and 4 below.
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 in recent years. The
Directors propose a final dividend of 1.40p per Ordinary share in respect
of the year ended 30th June 2020 (2019: 1.40p). If approved at the Annual
General Meeting, the dividend will be paid on 30th November 2020 to
shareholders on the register at the close of business on 6th November 2020
(ex-dividend 5th November 2020).
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.
Throughout the year the Group's investments included seven funds managed
by the Investment Manager (2019: 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 discussed below. The audit committee reviews
existing and emerging risks on a six monthly basis. The Board has closely
monitored the societal, economic and market focused implications of the
events in 2020 to date, and have accordingly added a new macro-economic
event risk to reflect these considerations:
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.
Macro-economic event risk
The Covid pandemic has been felt globally in 2020. The scale and
potential adverse impact of a macro-economic event, such as the Covid
pandemic, has highlighted the possibility of a number of identified risks
such as market risk, currency risk, investment liquidity risk and
operational risk having an adverse impact at the same time. The risk may
impact on: the value of the Company's investment portfolio, its liquidity,
meaning investments cannot be realised quickly, or the Company's ability
to operate if the Company's suppliers face financial or operational
difficulties. The Directors closely monitor these areas and currently
maintain a significant cash balance.
Portfolio risks - market price, foreign currency and interest rate risks
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.
The Investment Manager regularly informs the Board of developments and any
key implications for either the Investment Strategy or the investment
portfolio.
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 FCA
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. How
the Board monitors its service providers, with an emphasis on their
business interruption procedures, is set out in the Corporate Governance
Statement.
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 and no financial
commitments. In the last few years investment income has exceeded 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, and have considered the economic and operational implications of
third party suppliers arising from the Covid-19 pandemic in finalising
this viability statement.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ISSUES
The Company has no employees, with day-to-day operational and
administration of the Company being delegated by the Board to the
Independent Investment Manager and the Administrator. The Company's
portfolio is managed in accordance with the investment objective and
policy approved by shareholders. The Company is primarily invested in
investment funds and exchange traded funds, where it has no direct
dialogue with underlying investments. Environmental, social and
governance considerations of underlying investee companies are not a key
driver when evaluating existing and potential investments.
GREENHOUSE GAS EMISSIONS
As the Company has no premises, properties or equipment of its own, the
Directors deem the Company to be exempt from making any disclosures under
the Companies Act 2006 (Strategic Reports and Directors' Reports)
Regulations 2013.
STREAMLINED ENERGY AND CARBON REPORTING
The Company is categorised as a lower energy user under the HMRC
Environmental Reporting Guidelines March 2019 and is therefore not
required to make the detailed disclosures of energy and carbon information
set out within the guidelines. The Company's energy and carbon
information is not therefore disclosed in this report.
MODERN SLAVERY ACT
The Directors rely on undertakings given by its independent third party
advisers that those companies continue to have no instances of modern
slavery either within their businesses or supply chains. Given the
financial services focus and geographical location of all third-party
suppliers to the Company, the Directors perceive the risks of a
contravention of the legislation to be very low.
GENDER DIVERSITY
The Board of Directors comprises three male directors, and currently no
female board members. Composition of the Board has not changed since
2017, and the Board has benefitted from stable membership and strong
working relationships between individual directors in that time. For this
reason, the Board does not currently anticipate making future changes.
The Board is committed to the benefits of diversity, including gender,
ethnicity and background when considering new appointments to the Board,
whilst always seeking to base any decision on merit, measured by
knowledge, experience and ability to make a positive contribution to the
Board's decision making.
LISTING RULE 9.8.4
Listing rule 9.8.4 required the Company to include certain information in
a single identifiable section of the Annual Report or a cross-reference
table indicating where the information is set out. The Directors confirm
that there were no disclosures to be made in this regard.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AT 30TH JUNE 2020
Year ended Year ended
30th June 2020 30th June 2019
Revenue Revenue
Return Capital Return Capital
Return Total Return Total
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Notes
INVESTMENT INCOME 2 2,169 - 2,169 1,890 - 1,890
Other operating 2 250 - 250 349 - 349
income
2,419 - 2,419 2,239 - 2,239
GAINS AND LOSSES
ON INVESTMENTS
(Losses)/gains on
investments at
fair value through 9 - (212) (212) - 1,992 1,992
profit or loss
Other exchange - 414 414 - 443 443
gains
Trail rebates - 4 4 - 5 5
2,419 206 2,625 2,239 2,440 4,679
EXPENSES
Management and 3 (697) (623) (1,320) (688) (410) (1,098)
performance fees
Other expenses 4 ( 397) - (397) (266) - (266)
( 1,094) ( 623) (1,717) (954) (410) (1,364)
PROFIT BEFORE TAX 1,325 (417) 908 1,285 2,031 3,315
Tax 5 - - - - - -
PROFIT FOR THE 1,325 (417) 908 1,285 2,031 3,315
YEAR
EARNINGS PER SHARE
Ordinary shares 7 1.87p (0.59)p 1.28p 1.81p 2.86p 4.67p
(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
2020
Share Share Special Retained
premium reserve earnings
Note capital Total
£ '000 £ '000 £ '000
£ '000 £ '000
AT 30TH JUNE 2019 710 21,573 56,908 34,780 113,971
Total comprehensive income - - - 908 908
for the year
Dividend paid 8 - - - (994) (994)
AT 30TH JUNE 2020 710 21,573 56,908 34,694 113,885
Included within Retained earnings were £2,018,000 of Company reserves
available for distribution.
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 BALANCE SHEET AT 30TH JUNE 2020
30th June 30th June
Notes 2020 2019
£ '000 £ '000
NON-CURRENT ASSETS
Investments at fair value through profit or loss 9 103,015 93,782
CURRENT ASSETS
Other receivables 11 137 220
Cash and cash equivalents 12 10,962 20,605
11,099 20,825
TOTAL ASSETS 114,114 114,607
CURRENT LIABILITIES
Other payables 13 (229) (636)
TOTAL ASSETS LESS CURRENT LIABILITIES 113,885 113,971
NET ASSETS 113,885 113,971
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 34,694 34,780
TOTAL EQUITY 113,885 113,971
NET ASSET VALUE PER ORDINARY SHARE 16 160.35p 160.47p
CONSOLIDATED CASH FLOW STATEMENTS AT 30TH JUNE 2020
Year ended Year ended Year Year
ended ended
30th June 30th June
30th June 30th June
2020 2020
2019 2019
Group Company
Group Company
Notes £ '000 £ '000
£ '000 £ '000
NET CASH INFLOW FROM
OPERATING ACTIVITIES
382 382 1,334 1,334
INVESTING ACTIVITIES
Purchase of investments (12,725) (12,725) (4,340) (4,340)
Sale of investments 3,280 3,280 8,851 8,851
NET CASH (OUTFLOW)/INFLOW
FROM INVESTING ACTIVITIES
(9,445) (9,445) 4,511 4,511
FINANCING
Equity dividends paid 8 (994) (994) (710) (710)
NET CASH OUTFLOW AFTER (994) (994) (710) (710)
FINANCING
(DECREASE)/INCREASE IN (10,057) (10,057) 5,135 5,135
CASH
RECONCILIATION OF NET CASH
FLOW TO MOVEMENT IN CASH &
CASH EQUIVALENTS
(Decrease)/Increase in
cash resulting from cash
flows (10,057) (10,057) 5,135 5,135
Exchange movements 414 414 443 443
Movement in net funds (9,643) (9,643) 5,578 5,578
Net funds at start of the 20,605 20,605 15,027 15,027
year
CASH & CASH EQUIVALENTS AT 17 10,962 10,962 20,605 20,605
END OF YEAR
RECONCILIATION OF PROFIT
BEFORE FINANCE COSTS AND
TAXATION TO NET CASH FLOW
FROM OPERATING ACTIVITIES
Profit before finance 908 908 3,315 3,315
costs and taxation*
(Losses)/Gains on 212 212 (1,992) (1,992)
investments
Exchange differences (414) (414) (443) (443)
Capital trail rebates (4) (4) (5) (5)
Net revenue gains before
finance costs and taxation
702 702 875 875
Decrease in debtors 81 81 43 43
(Decrease)/Increase in (407) (407) 402 402
creditors
Taxation 2 2 9 9
Capital trail rebates 4 4 5 5
NET CASH INFLOW FROM
OPERATING ACTIVITIES
382 382 1,334 1,334
*Includes dividends received in cash of £1,977,000 (2019: £1,599,000),
accumulation income of £245,000 (2019: £278,000) and interest received of
£270,000 (2019: £408,000).
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2020
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 (see 1 (p)). 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 and October 2019
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 2020.
No statement of comprehensive income is presented for the parent company
as permitted by Section 408 of the Companies Act 2006.
The 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 (see note 18(h)).
(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 accruals 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) Going concern basis of preparation: The Directors considered the
impact of Covid-19 pandemic and the impact this may have on the Group, in
particular noting that, in addition to its significant cash balances the
Group holds a highly liquid portfolio, which could be sold. The Directors
also reviewed scenarios of a significant drop in value of the assets and
falls in income received. They have also considered the resiliency of the
Group's key service providers and are satisfied that they have worked
adequestly during the Covid-19 pandemic and are sustainable. Therefore,
the going concern basis has been adopted in preparing the Group's
Financial statements.
(q) New standards, interpretations and amendments effective for the
periods beginning on or after 1 July 2019: There are no new standards,
amendments to standards and interpretations that are relevant to the Group
and should be disclosed.
(r) New standards, interpretations and amendments issued which are not yet
effective and applicable for the periods beginning on or after 1 July
2020: The following amendments to standards issued but are not yet
effective are relevant and applicable to the Group, although they have no
impact on the financial statements of the Group:
- IFRS 3: Definition of a Business
- Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest Rate Benchmark
Reform
- Amendments to IAS 1 and IAS 8 - Definition of Material
2. INVESTMENT INCOME
Year ended Year ended
30th June 30th June
2020 2019
£ '000 £ '000
INCOME FROM INVESTMENTS
UK net dividend income 1,844 1,691
Unfranked investment income 325 199
2,169 1,890
OTHER OPERATING INCOME
Bank interest receivable 250 336
Loan interest income - 13
250 349
TOTAL INCOME COMPRISES
Dividends 2,169 1,890
Other income 250 349
2,419 2,239
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 AND PERFORMANCE FEES
Year ended Year ended
30th June 2020 30th June 2019
Revenue Capital Total Revenue Capital Total
£ '000 £ '000
£ '000 £ '000 £ '000 £ '000
Investment management fee 697 - 697 688 - 688
Performance fee - 623 623 - 410 410
697 623 1,320 688 410 1,098
At 30th June 2020 there were amounts accrued of £177,000 (2019: £177,000)
for investment management fees and £nil (2018: £410,000) for performance
fees.
4. OTHER EXPENSES
Year ended Year ended
30th June 30th June
2020 2019
£ '000 £ '000
Directors' remuneration 65 50
Administrative and secretarial fee 95 95
Auditors' remuneration
- Audit 32 32
- Interim review 8 8
Other 197 81
397 266
Allocated to:
- Revenue 397 266
- Capital - -
397 266
5. TAXATION
(a) Analysis of tax charge for the year:
Year ended Year ended
30th June 2020 30th June 2019
Revenue
Return Capital Revenue Capital
Return Return Return
£ '000 £ '000 Total £ '000 Total
£ '000 £ '000 £ '000
Overseas tax 1 - 1 3 - 3
Recoverable income tax (1) - (1) (3) - (3)
Total current tax for the - - - - - -
year
Deferred tax - - - - - -
Total tax for the year - - - - - -
(note 5b)
(b) Factors affecting tax charge for the year:
The charge for the year of £nil (2019: £nil) can be reconciled to the
profit per the consolidated statement of comprehensive income as follows:
Year ended Year ended
30th June 30th June
2020 2019
£ '000 £ '000
Total profit before tax 908 3,315
Theoretical tax at the UK corporation tax rate of 172 630
19.00% (2019: 19.00%)
Effects of:
Non-taxable UK dividend income (350) (321)
Gains and losses on investments that are not taxable (38) (463)
Excess expenses not utilised 249 154
Overseas dividends which are not taxable 33 -
Overseas tax 1 3
Recoverable income tax (1) (3)
Total tax for the year - -
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 (2019: £nil) in the capital account of the
Company. There is no deferred tax charge in the revenue account (2019:
£nil).
At the year-end there is an unrecognised deferred tax asset of £929,000
(2019: £520,000) based on the enacted tax rates of 19% for financial years
beginning 1st April 2020, as a result of excess expenses.
6. COMPANY RETURN FOR THE YEAR
The Company's total return for the year was £908,000 (2019: £3,315,000).
7. RETURN PER ORDINARY SHARE
Total return per Ordinary share is based on the Group total return on
ordinary activities after taxation of £908,000 (2019: £3,315,000) and on
71,023,695 (2019: 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 £1,325,000 (2019: £1,285,000) and on
71,023,695 (2019: 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 (losses)/gains
for the year of £(417,000) (2019: £2,031,000) and on 71,023,695 (2019:
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
2020 2019
£ '000 £ '000
Dividends paid during the year 994 710
Dividends payable in respect of the year ended:
30th June 2020: 1.4p (2019: 1.4p) per share 994 994
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
2020 2019
£ '000 £ '000
GROUP AND COMPANY 103,015 93,782
ANALYSIS OF INVESTMENT
PORTFOLIO - GROUP AND COMPANY
Quoted* Unquoted Total
£ '000 £ '000 £ '000
Opening book cost 60,372 8,448 68,820
Opening investment holding gains/(losses) 26,024 (1,062) 24,962
Opening valuation 86,396 7,386 93,782
Movement in period
Purchases at cost 12,725 - 12,725
Sales
- Proceeds (3,272) (8) (3,280)
- Realised (losses)/gains on sales (2,094) 8 (2,086)
Movement in investment holding gains for the year 792 1,082 1,874
Closing valuation 94,547 8,468 103,015
Closing book cost 67,731 8,448 76,179
Closing investment holding gains 26,816 20 26,836
Closing valuation 94,547 8,468 103,015
* Quoted investments include unit trust and OEIC funds and one monthly
priced fund.
Year ended Year ended
30th June 30th June
2020 2019
£ '000 £ '000
ANALYSIS OF CAPITAL GAINS AND LOSSES
Realised (losses)/gains on sales of investments (2,086) 4,175
Increase/( Decrease) in investment holding gains 1,874 (2,183)
Net (losses)/gains on investments attributable to (212) 1,992
ordinary shareholders
Transaction costs
The purchase and sale proceeds figures above include transaction costs on
purchases of £2,002 (2019: £3,260) and on sales of £nil (2019: £638).
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
2020 2019
£ '000 £ '000
Net assets brought forward 506 506
Profit for year - -
Net assets carried forward 506 506
11. OTHER RECEIVABLES
30th June 30th June 30th June 30th June
2020 2020 2019 2019
Group Company Group Company
£ '000 £ '000 £ '000 £ '000
Prepayments and accrued income 133 133 214 214
Taxation 4 4 6 6
137 137 220 220
12. CASH AND CASH EQUIVALENTS
30th June 30th June 30th June 30th June
2020 2020 2019 2019
Group Company Group Company
£ '000 £ '000 £ '000 £ '000
Cash at bank and on deposit 10,962 10,962 20,605 20,605
13. OTHER PAYABLES
30th June 30th June 30th June 30th June
2020 2020 2019 2019
Group Company Group Company
£ '000 £ '000 £ '000 £ '000
Accruals 229 229 636 636
Amounts owed to subsidiary - 506 - 506
undertakings
229 735 636 1,142
14. CALLED UP SHARE CAPITAL
30th June 30th June
2020 2019
£ '000 £ '000
Authorised
305,000,000 (2019: 305,000,000) Ordinary shares of 3,050 3,050
£0.01 each
Issued and fully paid
71,023,695 (2019: 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 2019 21,573 56,908 34,780
Increase in investment holding gains - - 1,874
Net losses on realisation of investments - - (2,086)
Gains on foreign currency - - 414
Performance fee - - (623)
Trail rebates - - 4
Retained revenue profit for year - - 1,325
Dividend paid (994)
At 30th June 2020 21,573 56,908 34,694
Share Special Retained
Premium Reserve earnings
account
£ '000 £ '000 £ '000
COMPANY
At 30th June 2019 21,573 56,908 34,780
Increase in investment holding gains - - 1,874
Net losses on realisation of investments - - (2,086)
Gains on foreign currency - - 414
Performance fee - - (623)
Trail rebates - - 4
Retained revenue profit for year - - 1,325
Dividend paid (994)
At 30th June 2020 21,573 56,908 34,694
The components of retained earnings are set out below:
30th June 30th June
2020 2019
£ '000 £ '000
GROUP
Capital reserve - realised 5,686 7,977
Capital reserve - revaluation 26,836 24,962
Revenue reserve 2,172 1,841
34,694 34,780
COMPANY
Capital reserve - realised 5,333 7,625
Capital reserve - revaluation 27,343 25,468
Revenue reserve 2,018 1,687
34,694 34,780
16. NET ASSET VALUE PER ORDINARY SHARE
The net asset value per Ordinary share is calculated on net assets of
£113,885,000 (2018: £113,971,000) and 71,023,695 (2098: 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
2019 Cash flow Exchange 2020
movement
£ '000 £ '000
GROUP
Cash at bank and 20,605 (10,057) 414 10,962
on deposit
COMPANY
Cash at bank and 20,605 (10,057) 414 10,962
on deposit
18. FINANCIAL INFORMATION
2020 Financial information
The figures and financial information for 2020 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 2020.
A copy of the Annual Report will be posted to the Company's website and
will also be submitted to the FCA's National Storage Mechanism and will be
available for inspection.
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.
Annual Report and Accounts
The accounts for the year ended 30th June 2020 will be sent to
shareholders in October 2020 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 12th November
2020 at 11.00am at 1 Knightsbridge Green, London SW1X 7QA.
30th September 2020
══════════════════════════════════════════════════════════════════════════
ISIN: GB0002631041
Category Code: ACS
TIDM: NSI
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 85172
EQS News ID: 1137932
End of Announcement EQS News Service
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