REG - Personal Assets Tst. - Final Results
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RNS Number : 2527N Personal Assets Trust PLC 18 June 2025
Personal Assets Trust plc
LEI: 213800Z7ABM7RLQ41516
Results for the year ended 30 April 2025
The Directors of Personal Assets Trust plc (the 'Company') are pleased to
announce the Company's results for the year ended 30 April 2025.
The key points are as follows:
· The Company's investment policy is to protect and increase (in that
order) the value of shareholders' funds per share over the long term.
· Over the year to 30 April 2025 the net asset value ('NAV') total
return was 7.5%. This compares to a total return of 7.5% in the FTSE All-Share
Index. The share price rose by 28.00p during the year and at 30 April 2025
was 511.00p. An analysis of performance is provided in the Chairman's
Statement and Investment Manager's Report below.
· Percentage changes to 30 April 2025:
Percentage Changes
1 Year 3 years 5 Years 10 Years Since 1990 ((1))
Share Price 5.8 1.6 18.0 45.7 1,193.7
NAV per Share ((2)) 5.8 4.7 20.8 47.3 809.1
FTSE All-Share Index 3.7 9.8 40.8 22.2 340.4
Share Price Relative to FTSE All-Share 2.0 (7.5) (16.2) 19.3 193.8
Share Price Total Return((2)) 7.4 6.3 26.5 67.8 2,432.7
NAV per Share Total Return((2)) 7.5 9.6 29.7 69.9 1,659.9
Retail Price Index (RPI) 4.5 20.2 37.5 55.9 221.5
Consumer Price Index (CPI) 3.5 15.1 27.4 38.3 150.3
FTSE All-Share Total Return 7.5 22.6 67.9 75.9 1,441.3
Share Price Total Return relative to FTSE All-Share Total Return (0.1) (13.3) (24.7) (4.6) 64.3
Share Price Total Return relative to RPI 2.8 (11.6) (8.0) 7.6 687.8
Share Price Total Return relative to CPI 3.8 (7.7) (0.7) 21.4 912.0
(1) The Company became self-managed in 1990.
(2) Alternative Performance Measure. Please see pages 64 and 65 of the
Annual Report for a glossary of terms and definitions.
· During the year the Company's shares continued to trade close to NAV.
The Company bought back 26,087,000 shares and issued 600,000 shares in the
year under review.
· During the year, the Company continued to maintain a high level of
liquidity. At 30 April 2025, liquidity was 63.3%. This included 21.8% in UK
Gilts, UK index-linked bonds, UK cash, overseas cash, and net current assets
and 41.5% in various classes of non-equity risk assets: 26.7% in US TIPS, 4.0%
in US Treasuries and 10.8% in Gold Bullion. This compared to holdings as at 30
April 2024 of 11.8% in UK Gilts, UK cash, overseas cash, and net current
liabilities and 60.6% in various classes of non-equity risk assets: 36.5% in
US TIPS, 11.6% in US Treasuries and 12.5% in Gold Bullion.
The Chairman, Iain Ferguson, said:
Our world has become ever more unpredictable and uncertain over the last year.
We have seen a predicted change of government in the UK and the 'world
changing' re-election of President Trump in the United States. Trump has
dominated the geo-political and world-economic agenda since the start of the
year, challenging and disrupting long-standing relationships across the globe,
whilst conducting his own 'brand' of diplomacy and negotiation in a blaze of
highly public engagements: 'Not for him the Art of Quiet Diplomacy'. In recent
weeks his imposition of tariffs, followed by myriad bilateral negotiations and
'special-deals and arrangements' has both spread alarm and confusion but has
also shown the limits of his ability to influence international markets
without severely damaging the US economy. Very sadly, the wars in Europe, the
Middle East and Africa continue and are each proving to be hugely intractable
despite intensifying international efforts to find workable solutions; we must
hope that these efforts can finally prevail and bring lasting and just peace.
This is the volatile and challenging context in which we seek to deliver our
core investment proposition, which is to protect and increase (in that order)
the value of shareholders' funds per share (also known as net asset value
('NAV') per share), over the long term. All the Personal Assets Trust plc
('PAT') Directors and our Investment Managers at Troy Asset Management Limited
('Troy'), Sebastian Lyon and Charlotte Yonge, are shareholders in PAT. As
such, we are all strongly aligned and are advocates for this investment
proposition. As PAT Directors, we have a close, but also independent,
relationship with the Troy team, bringing our collective experience to
complement, inform, challenge and support.
We track the performance of the Company from 1990. Since then, the NAV total
return has grown at an annual compound rate of 8.6% compared to 3.5% for the
UK Retail Price Index and 8.4% for the FTSE All-Share Index (total return),
our two main comparators. We also track the degree of risk experienced in
achieving our financial performance. The results are tabulated in the Key
Features section on page 2 of the Annual Report and the volatility experienced
is indicated on the chart on page 11 of the Annual Report. This shows that
over the last 25 years the Company has been less volatile than equities in
general and also less volatile than the AIC Flexible Investment Sector. Whilst
this combination of above comparator financial performance and below-sector
volatility is the outcome of a focus on capital preservation, these metrics
are by no means a target. The Investment Manager's focus remains on the
avoidance of permanent capital loss (our preferred definition of risk) and on
growing the real value of the Company's capital over the long run. In the
report on pages 6 and 7 of the Annual Report, Sebastian and Charlotte provide
further details of our investment performance and describe the particular
challenges of the last year.
During the year we bought back 26,087,000 Ordinary shares into Treasury, and
issued 600,000 Ordinary shares from Treasury, under the Company's discount
control policy, for a net outflow of £126 million. As at 30 April 2025 we had
392,805,200 Ordinary shares in issue, with 75,966,828 Ordinary shares in
Treasury. It is the policy of the Company to ensure that, in normal market
conditions, its Ordinary shares always trade at or close to NAV and this
policy is enshrined in the Articles of Association. It is reassuring to report
that since November 1999, when investment trusts were empowered to use capital
to buy back shares and hence control the discount to NAV at which their shares
trade, the PAT share price has closely tracked the NAV. This has held true
both through periods of significant issuance and, as demonstrated in recent
past, through a period of sustained buyback avoiding the major discounts to
NAV which have impacted many trusts across the wider market.
The Company aims to pay as consistent and sustainable a dividend as is
compatible with protecting and increasing the value of its shareholders' funds
and maintaining its investment flexibility. The Board remains committed to
paying an annual dividend of 5.60p per share in line with this policy. High
levels of inflation during the year, particularly in the United States, mean
that the Company has again this year earned significantly more income on its
holding of US TIPS than in previous years. Accordingly, in order to meet the
investment trust distribution requirements, the Board has resolved to pay an
additional special dividend for the year to 30 April 2025 of 1.60p per share.
This dividend will be paid to shareholders in July 2025 alongside the first
interim dividend of 1.40p per share for the year to 30 April 2026.
The Board membership has enjoyed a further year of stability and I am grateful
for the continuing commitment and wise counsel of my colleagues. Jean Sharp
will step down from the Board after nine years as a Director, latterly as
Chair of the Audit and Risk Committee at the close of the upcoming AGM. Jean
has been a very effective and diligent member of the Board and we are grateful
for the significant contribution she has made to PAT; we wish her well for the
future. Sharon Brown will be joining the Board as a Director and Chair of the
Audit and Risk Committee, with effect from the conclusion of the AGM. Sharon
brings extensive financial and commercial experience together with
contemporary knowledge of investment trusts; we look forward to her
contribution to our discussions. During 2025 Lintstock conducted an
independent external review of the performance of the Board and its
Committees. Whilst this did not highlight any material weaknesses or concerns,
it did helpfully identify a few areas for further focus by the Board in the
period ahead. Further detail can be found on page 29 of the Annual Report, and
we will comment on progress made in our report next year.
As part of our oversight of our key service providers, we conduct a formal
annual review process with Troy. The review process is led by Mandy Clements
and includes open discussions with all the PAT Directors and several members
of the senior team at Troy. We have all found this to be a positive and
helpful exercise. In summary, our relationship with Troy continues to be
excellent and we are increasingly benefitting from access to the shared
resources and focused support from the wider Troy team. We now hold at least
two Board meetings each year in the Troy offices in London which is helping us
to get to know more members of the Troy team and to deepen our relationship on
a broader base. As our shareholder funds continue to be above £1.5 billion,
we continue to benefit from the revised fee structure agreed in 2021. Details
of the fee structure are shown on page 15 of the Annual Report. We also pay
particular attention to ensuring the competitiveness of our ongoing charges
ratio, which was 0.67% for the year ended 30 April 2025, having reduced from
0.89% in 2013 and is a small increase from last year's figure of 0.65%.
We adopt a similar annual review process with Juniper Partners. As with Troy,
this process is led by Mandy Clements. Our relationship with Juniper Partners,
which provides our administrative, company secretarial, AIFM and discount
control services, continues to be excellent with a very open and supportive
culture. Juniper Partners provides a first-class service to the Company and
works in close association with Troy to provide a seamless service to the PAT
Board and shareholders.
We recognise the continuing evolution of the Company's shareholder base and
the increasing number of investors holding shares through retail platforms who
may not have direct access to communications with the Company. This is a
challenge which is often discussed by the Board as we seek to improve
communication and interaction with investors. We hope that our website
(www.patplc.co.uk), our Quarterlies, our Annual and Interim Reports and our
monthly Factsheet are providing investors with easy and effective access to
information about PAT and we will continue to seek innovative ways of
improving our dialogue with shareholders and with potential shareholders.
We are looking forward to holding the AGM at 12 noon on Friday 18 July 2025 at
The Royal College of Physicians of Edinburgh. The Investment Manager's
presentation will also be made available on our website following the AGM for
those who cannot attend in person. I would encourage all shareholders to
submit any questions for the AGM to our Company Secretary by email in advance
of the meeting at cosec@junipartners.com by Tuesday, 15 July 2025. In the
meantime, I wish you all good health and thank you for entrusting your
investment to PAT.
Iain Ferguson CBE
Chairman
17 June 2025
The Investment Co-managers, Sebastian Lyon and Charlotte Yonge, said:
Over the year to 30 April 2025, the net asset value per share ('NAV') of
Personal Assets Trust ('PAT') rose by +7.5% while our traditional comparator,
the FTSE All-Share Index ('FTSE'), rose by +7.5% (both in total return terms).
The UK Retail Price Index ('RPI'), which we also use as a comparator (see the
inside front cover of the Annual Report and Key Features and Record 1990-2025
on pages 2 and 3 of the Annual Report respectively), rose by +4.5%. The
Company's NAV and share price (thanks to the discount control mechanism 'DCM')
continued to demonstrate below-average volatility compared to peers and the
stock market.
Our aim is to protect and grow shareholders' capital over the long term. Our
desire is to generate equity-like returns (high single-digits) with bond-like,
or considerably lower, volatility. The performance of your Company over the
past year has happened to be almost exactly in line with the return for the UK
stock market, our comparator, but this is merely a coincidence as our
portfolio could not look more different. Shareholders should expect returns to
vary materially from the stock market. Our focus is on absolute returns rather
than returns relative to an index. We are very aware that shareholders cannot
spend relative pounds!
The performance of markets over the year belies considerable volatility -
especially after the tariff announcements on 'Liberation Day' in April. PAT
shareholders were sheltered from much of the volatility with the Company's NAV
falling only modestly (-1.9%), compared to near double digit falls of -9.7%
and -10.5% in the MSCI World and FTSE All-Share respectively. Moreover, in a
period in which many investment trust discounts have widened materially,
shareholders have been protected by the DCM, with the shares consistently
trading close to the NAV.
Our investment views in recent years have been shaped by an expectation of
regime change. This began with policy decisions made during the pandemic. The
shift to substantial monetary expansion by central banks, combined with fiscal
spending by governments led to a more inflationary environment. Since the blow
out of inflation in 2022 and 2023, in which UK RPI peaked at 14% and US CPI
peaked at 9%, central banks have struggled to get inflation back to target,
despite the tightest monetary policy in almost two decades. The fiscal genie
is out of the bottle and government spending has grown, despite recent
attempts (in the United States) to reverse fiscal commitments. Elon Musk's
attempt via the Department of Government Efficiency (DOGE) to rein in federal
spending appears to have failed. Government debts have grown dramatically
across the developed world. This was fine whilst interest rates were close to
zero but today, with interest rates and bond yields at 4%-5%, the interest
burden has become a material part of government spending. In the US, this cost
has ballooned in the past three years from 8% of federal government tax
receipts in 2022 to 19% in 2025 (source: Jefferies). Globalisation, which
provided growth and helped depress inflation, appears to be firmly in reverse.
President Trump's recently announced trade war and isolationist inclinations
have only accelerated the deglobalisation trend. Finally, the war in Europe,
now in its fourth year, is leading to a wholesale change in defence spending.
All these factors have led to a world of greater uncertainty, higher inflation
and a bond bear market, which began in the summer of 2020. Thus far, the 2020s
are looking very different from the 2010s.
Amid this environment, we have attempted to avoid the trap of rising bond
yields, which affects the valuations of fixed income securities and some
equities. We have sailed close to the shore with a relatively low equity
exposure and short bond duration; preferring index-linked to nominal bonds.
Gold bullion has played a critical role in the portfolio as a diversifier and
an offset to falls in other asset prices, when they occur. We hold plenty of
liquidity for when we see selective and more wholesale opportunities in the
stock market.
The biggest contributors to performance during the year included our holdings
in Visa, VeriSign, Unilever and American Express. The biggest detractors were
Diageo and Pernod Ricard, which continue to suffer from weaker trading in
spirits markets. Following a boom both during and following the pandemic, the
sector has suffered from a nasty hangover of weaker demand and pricing. Our
experience informs us that demand will ultimately recover but it may take
time. The valuations are low today by historic standards, which should offer
support and, ultimately, opportunity.
During the year we made several changes to the portfolio and by our standards,
we were more active than usual. We sold longstanding holdings in Becton
Dickinson and Procter & Gamble ('P&G'). Despite making a positive
total return since our purchase in 2020, Becton Dickinson continued to face
operational challenges and financial progress has been sluggish. Subsequent to
our sale, the shares have fallen materially on further deterioration in the
company's operating environment. P&G was first acquired in 2015. It proved
to be an excellent investment for us; a well-executed long term turnaround. In
addition, P&G benefited from a strong US domestic economy, when peers
struggled in Europe and emerging markets. The shares have materially re-rated
over many years of clinical delivery by competent management but performance
is looking less resilient, with slowing organic sales growth and a valuation
that looks hard to justify compared to peers like Unilever.
Over the last year, we have added new holdings of Canadian National Railway,
Chubb and VeriSign. We have followed Canadian National for five years. Its
natural monopoly, as a North American railroad, allows the company to generate
high, sustainable profit margins. Adverse weather and port strikes provided an
opportunity to purchase this structurally advantaged business at a
below-average valuation. We have also been looking for companies that benefit
from a rising yield environment. Chubb, the world's largest property and
casualty insurer, has an exceptional track record of managing its risks with a
consistent track record of profitability and capital allocation. The company
is well-known for its strong market position serving high net worth customers.
There is an opportunity to materially grow investment income from higher bond
yields. As Chubb's bonds held on its balance sheet mature, they are reinvested
at higher yields, providing a tailwind to earnings, which was not present in a
zero-interest rate world. Lastly, VeriSign is the exclusive registry for .com
and .net domain names, meaning any company that buys a .com web address
ultimately purchases it from VeriSign. The company has provided uninterrupted
service for over 20 years and is rewarded by being able to gradually raise
prices for domains. We expect VeriSign to grow sales and profit margins
through modest growth in the number of web addresses, gradual price rises and
operating leverage. We were also attracted by its strong balance sheet, with
very conservative debt levels.
In the stock market falls that followed the announcement of United States'
tariffs, we increased existing equity holdings as well as adding two new
European companies to the portfolio, LVMH and L'Oréal. Both meet our careful,
quality criteria and had fallen to valuations which looked fair.
Apart from the portfolio's equity exposure, we are seeking complementary asset
classes that may offset falls in equity markets. The US dollar has been kind
to us over many years, especially during periods of stock market turbulence
such as 2008, 2020 and 2022. The greenback has ridden to our rescue in these
times of trouble, dampening the volatility of the Company's NAV. More recently
the currency has not stuck to the script. Our view is that this may prove to
be a lasting change as investors increasingly question the dollar's position
as the world's reserve currency. We have reduced the dollar exposure in favour
of the yen, which we expect to behave more reliably as a safe haven in periods
of market stress.
Gold remains a cornerstone of the portfolio. As no one's liability, bullion
has a special place, and it is once again being appreciated as the ultimate
reserve asset. In a world of heightened geopolitical risk, and the desire to
diversify away from the US dollar, central banks continued to add to their
holdings during the past year. There are very rational reasons for the recent
rise in the price, when compared to paper money. Charlie Munger used to say,
"Always invert". Consider the gold price not rising but the value of paper
currencies, like sterling and the US dollar, depreciating in value when
compared to gold. We would not wish to get disproportionately more bullish
into rising prices, so we have reduced the trust's holding into strength,
retaining a percentage weighting of 10-12%.
During the past year, the investment narrative has changed from 'American
exceptionalism' to one best summed up by the acronym 'ABUSA - anything but the
USA'. We are not convinced life is so simple. Such views demonstrate changes
to sentiment and a voting machine mentality, over the weighing machine of
substance. The US stock market remains very fully valued, yet it also hosts
some of the very best companies including Microsoft and Visa, held by the
Company, which are not available elsewhere. We will continue to add
selectively to equities in the US, Europe and the UK, as we did during market
falls in April when presented with improved valuations and better prospective
returns.
Finally, in March we were delighted to announce the promotion of Charlotte
Yonge as Co-Manager of PAT, which became effective on 1 May. This changes very
little as to how the Company is managed day-to-day and I very much look
forward to continuing our partnership in the years ahead. As longstanding
investors in the Company, Charlotte and my interests are firmly aligned with
fellow shareholders. Charlotte has been at Troy since 2013 and is one of
several employees who have been with the business for over a decade. We see
great value in hiring, developing, and retaining talent, and believe that our
high rates of retention underline the stability and depth of our broader team.
Sebastian Lyon and Charlotte Yonge
Troy Asset Management
17 June 2025
For further information, please contact:
Troy Asset Management
Investment Manager
Tel: 0207 499 4030
Juniper Partners Limited
Company Secretary
Tel: 0131 378 0500
Income Statement
Year ended 30 April 2025 Year ended 30 April 2024
Revenue Capital Revenue Capital
return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment income
Calculated using the effective interest rate method 17,201 - 17,201 17,456 - 17,456
Other investment income 24,205 - 24,205 27,410 - 27,410
Other operating income 1,101 - 1,101 991 - 991
Gains on investments - 48,658 48,658 - 20,816 20,816
Foreign exchange gains/(losses) - 41,049 41,049 - (4,132) (4,132)
Total income 42,507 89,707 132,214 45,857 16,684 62,541
Expenses (4,974) (5,935) (10,909) (5,047) (6,242) (11,289)
Return before taxation 37,533 83,772 121,305 40,810 10,442 51,252
Taxation (7,871) 1,484 (6,387) (8,552) 1,560 (6,992)
Return for the year 29,662 85,256 114,918 32,258 12,002 44,260
Return per share 8.92p 25.64p 34.56p 8.77p 3.26p 12.03p
The 'Return 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.
The 'Total' column of this statement represents the Company's Income
Statement, and the 'Revenue return' and 'Capital return' columns are
supplementary to this and are prepared under guidance published by the
Association of Investment Companies.
Return per share (both basic and diluted) is calculated on 332,542,668 (2024:
367,849,279) shares, being the weighted average number in issue (excluding
Treasury shares) during the year.
Dividend Information 2025 2024
£'000 £'000
Amounts recognised as distributions to equity holders per Ordinary share
First interim dividend of 1.40p (2024: 1.40p) paid on 31 July 2024 4,701 5,431
Special dividend of 1.60p (2024: 2.10p) paid on 31 July 2024 5,373 8,146
Second interim dividend of 1.40p (2024: 1.40p) paid on 4 October 2024 4,661 5,290
Third interim dividend of 1.40p (2024: 1.40p) paid on 24 January 2025 4,501 5,064
Fourth interim dividend of 1.40p (2024: 1.40p) paid on 11 April 2025 4,476 4,881
23,712 28,812
Statement of Financial Position
As at As at
30 April 2025 30 April 2024
£'000 £'000
Non-current assets
Investments 1,462,968 1,640,632
Property 1,730 1,730
Total non-current assets 1,464,698 1,642,362
Current assets
Receivables 4,898 7,278
Financial assets 25,057 -
Cash and cash equivalents 168,362 29,475
Total current assets 198,317 36,753
Total assets 1,663,015 1,679,115
Current liabilities
Financial liabilities (27,926) (8,733)
Other payables (2,685) (3,101)
Total liabilities (30,611) (11,834)
Net assets 1,632,404 1,667,281
Capital and reserves
Ordinary share capital 49,100 49,100
Share premium 242 -
Capital redemption reserve 219 219
Special reserve 1,372,145 1,372,145
Treasury share reserve (364,639) (238,314)
Capital reserve - unrealised 232,546 198,806
Capital reserve - realised 314,017 262,501
Revenue reserve 28,774 22,824
Total equity 1,632,404 1,667,281
Shares in issue at year end 316,838,372 342,325,372
Net asset value per Ordinary share 515.22p 487.05p
Statement of Changes in Equity
Distributable reserves
For the year ended Ordinary share capital Share premium Capital redemption reserve Special reserve Capital reserve realised Revenue reserve
30 April 2025 Capital reserve unrealised Treasury share reserve
Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
£'000
Balance at 1 May 2024 49,100 - 219 198,806 (238,314) 1,372,145 262,501 22,824 1,667,281
Return for the year - - - 33,740 - - 51,516 29,662 114,918
Dividends paid - - - - - - - (23,712) (23,712)
Share buybacks - - - - (129,179) - - - (129,179)
Issue of Ordinary Shares - 242 - - 2,854 - - - 3,096
Balance at 30 April 2025 49,100 242 219 232,546 (364,639) 1,372,145 314,017 28,774 1,632,404
Distributable reserves
For the year ended Ordinary share capital Share premium Capital redemption reserve Special reserve Capital reserve realised Revenue reserve
30 April 2024 Capital reserve unrealised Treasury share reserve
Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
£'000
Balance at 1 May 2023 49,100 1,349,680 219 202,745 22,517 246,560 19,378 1,884,352
(5,847)
Return for the year - - - (3,939) - - 15,941 32,258 44,260
Dividends paid - - - - - - - (28,812) (28,812)
Share buybacks - - - - (232,467) - - - (232,467)
Reduction & reclassification of Share premium account* - (1,349,680) - - - 1,349,680 - - -
Cost of reduction and reclassification of Share premium account - - - - - (52) - - (52)
Balance at 30 April 2024 49,100 - 219 198,806 (238,314) 1,372,145 262,501 22,824 1,667,281
*On 24 April 2024 the Court of Session in Scotland (the 'Court') approved the
reduction of the Company's share premium account and the crediting of an
equivalent amount to the Company's distributable reserves. The Order of the
Court approving the reduction became effective on 26 April 2024 when it was
registered with the Registrar of Companies.
Cash Flow Statement
Year ended Year
30 April ended
30 April
2025 2024
£'000 £'000
Cash flows from operating activities
Return before taxation 121,305 51,252
Income calculated using the effective interest rate method (17,201) (17,456)
Gains on investments (48,658) (20,816)
Foreign exchange (gains)/losses (41,049) 4,132
Operating cash flow before movements in working capital 14,397 17,112
Decrease/(increase) in accrued income, prepayments and other receivables 3,692 (51)
Increase/(decrease) in other payables 27,994 (244)
Net cash from operating activities before taxation 46,083 16,817
Taxation paid (7,699) (8,752)
Net cash inflow from operating activities 38,384 8,065
Cash flows from investing activities
Purchase of investments - equity shares (227,321) (45,766)
Purchase of investments - fixed interest and other investments (595,063) (355,442)
Disposal of investments - equity shares 96,161 22,785
Disposal of investments - fixed interest and other investments 969,747 581,996
Settled forward foreign exchange gains 7,496 28,571
Net cash inflow from investing activities 251,020 232,144
Cash flows from financing activities
Equity dividends paid (23,712) (28,812)
Cost of share buybacks (129,663) (231,984)
Cost of share premium cancellation - (52)
Issue of shares from Treasury 3,096 -
Net cash outflow from financing activities (150,279) (260,848)
Increase/(decrease) in cash and cash equivalents 139,125 (20,639)
Cash and cash equivalents at the start of the year 29,475 50,014
Effect of exchange rate changes (238) 100
Cash and cash equivalents at the year end 168,362 29,475
Net cash inflow from operating activities includes the following:
Dividends received 9,043 8,050
Interest received 18,312 20,199
Principal Risks and Risk Management
The Board has carried out a careful assessment of the principal risks facing
the Company, including the ongoing current geopolitical risks and the ongoing
impacts of inflation levels and heightened interest rates. The Board has
established and maintains, with the assistance of the Company Secretary, a
risk matrix which identifies the key risks to the Company. This register is
formally reviewed on a regular basis. Emerging risks that could impact the
Company are considered and discussed at each Board meeting, or on an ad hoc
basis as required, along with any proposed mitigating actions.
The principal risks and uncertainties facing the Company, together with a
summary of the mitigating action the Board takes to manage these risks and how
these risks have changed over the period, are set out below.
The arrows denote if the relevant risk has increased, decreased or remained
the same during the year after considering the mitigating actions.
Emerging
Risk
Geopolitical developments, including the imposition of US tariffs and ongoing
conflicts in Ukraine and the Middle East continue to pose risks to global
economic growth and investors' risk appetites and consequently can impact the
valuation of companies in the portfolio. There is also an increasing awareness
of the challenges and emerging risks posed by climate change as well as the
impact and pace of technological developments on the companies in the
investment universe.
Mitigation
The Board seeks to mitigate these emerging risks through maintaining a broadly
diversified global equity portfolio and appropriate asset and geographical
allocation. In respect of climate change risks, the investment process
considers ESG factors, as set out in the Responsible Investment section on
pages 20 and 21 of the Annual Report. Overall the specific potential effects
of climate change and developing technology are difficult, if not impossible,
to predict and the Board and Investment Manager will continue to monitor
developments in this area. The Board is in regular communication with the
Investment Manager on emerging matters which may impact on the portfolio.
↑ Increased risk
Economic
Risk
The Board believes that the principal risk to shareholders and the Company's
investments are events or developments, including the emerging risks noted
above, which can affect the general level of share prices and other securities
within the portfolio. These include for instance, inflation or deflation,
economic recessions and movement in interest rates and currencies which could
cause losses within the portfolio.
Mitigation
The Board regularly monitors the investment environment and the management of
the Company's investment portfolio, and applies the principles detailed in the
guidance provided by the Financial Reporting Council. Further details on the
Company's financial risks are contained in the Notes to the Accounts on pages
47 to 59 of the Annual Report.
The Company's strategy is reviewed formally on at least an annual basis
considering investment performance, market developments and shareholder
communication. The Board receives regular updates on the composition of the
Company's portfolio. Investment performance and the portfolio composition has
been monitored specifically in the light of the emerging risks noted above.
↑ Increased risk
Operational
Risk
The Company is reliant on service providers including Troy as Investment
Manager, Juniper as AIFM, Company Secretary, Administrator and discount and
premium control provider, J.P. Morgan as Depositary and Custodian and Equiniti
as Registrar. Failure of the internal control systems of these parties,
including in relation to cybersecurity measures, could result in losses to the
Company.
Mitigation
The Board formally reviews the Company's service providers on an annual basis,
including reports on their internal controls where available. As part of the
annual review the Board considers the business continuity plans in place with
each of its key suppliers and the measures taken to mitigate cyber threats.
The Company's internal controls are described in more detail on pages 33 and
34 of the Annual Report.
→ Risk remains relatively unchanged
Legal and Regulatory
Risk
Breach of legal and regulatory rules could lead to the suspension of the
Company's Stock Exchange listing, financial penalties, or a qualified audit
report. Breach of Section 1158 of the Corporation Tax Act 2010 could lead to
the Company being subject to tax on realised capital gains.
Mitigation
Compliance with the Company's regulatory obligations is monitored on an
ongoing basis by the AIFM, the Investment Manager and other professional
advisers as required who report to the Board regularly.
→ Risk remains relatively unchanged
Discount and Premium Control
Risk
The share price could be impacted by a number of external factors which could
cause significant discount and premium fluctuations.
Mitigation
The Company's discount and premium control policy, which is enshrined in the
Articles of Association, is to ensure that shares always trade at close to net
asset value. The Company bought back 26,087,000 shares and issued 600,000
shares in the year under review.
→ Risk remains relatively unchanged
Directors' Responsibility Statement
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulation.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have prepared the financial
statements in accordance with UK-adopted international accounting standards.
Under company law, Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
of the Company and of the profit or loss of the Company for that period.
In preparing the financial statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· state whether applicable UK-adopted international accounting
standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
· make judgements and accounting estimates that are reasonable and
prudent; and
· prepare the financial statements on the going concern basis unless it
is inappropriate to presume that the Company will continue in business.
The Directors are responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
The Directors are also responsible for keeping adequate accounting records
that are sufficient to show and explain the Company's transactions and
disclose with reasonable accuracy at any time the financial position of the
Company. This enables them to ensure that the financial statements and the
Directors' Remuneration Report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the
Company's website. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from legislation in other
jurisdictions.
Going Concern
The Directors believe, in the light of the controls and review processes
reported in the Report of the Audit and Risk Committee on pages 33 and 34 of
the Annual Report and bearing in mind the nature of the Company's business and
assets, which are considered to be readily realisable if required, that the
Company has adequate resources to continue operating for at least 12 months
from the date of approval of the financial statements. For this reason, they
continue to adopt the going concern basis in preparing the accounts.
As part of the going concern assessment a sensitivity analysis was performed.
If the market dropped by 25% and no dividend income became available the
Company would be able to continue operating for the foreseeable future.
Related Party Transactions
Investment management services are provided by Troy Asset Management Limited.
The fee for the year ended 30 April 2025 was £9,131,000 (2024: £9,603,000).
An amount of £2,190,000 was outstanding to the Investment Manager at 30 April
2025 (2024: £2,359,000).
Directors of the Company received fees for their services. An amount of
£27,000 was outstanding to the Directors at 30 April 2025 (2024: £19,000).
Further details are provided in the Directors' Remuneration Report on pages 30
to 32 of the Annual Report. The Directors' shareholdings are also detailed on
pages 12 and 13 of the Annual Report.
Notes:
1. The financial statements of the Company have been prepared in
accordance with UK-adopted International Accounting Standards and with the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards.
Substantially all of the assets of the Company consist of securities that are
readily realisable and, accordingly, the Directors are satisfied that the
Company has adequate resources to continue in operational existence for a
period of at least twelve months from the date of approval of the Financial
Statements and therefore consider the going concern assumption to be
appropriate. The Directors have reviewed the income and expense projections
and the liquidity of the investment portfolio in making their assessment.
The financial statements are presented in Sterling and all values are rounded
to the nearest thousand pounds (£'000) except where otherwise indicated.
The financial statements have been prepared on the historical cost basis,
modified by revaluation of financial assets and financial liabilities held at
fair value. The principal accounting policies adopted are set out below. These
have been applied consistently, other than where new policies have been
adopted. Where the presentational guidance set out in the Statement of
Recommended Practice (the 'SORP') for investment trusts issued by the
Association of Investment Companies (the 'AIC') in July 2022 is consistent
with the requirements of International Financial Reporting Standards ('IFRS'),
the Directors have sought to prepare the financial statements on a basis
compliant with the recommendation of the SORP.
2. During the year 26,087,000 shares were bought back and held in
Treasury at a cost of £129,179,000 and 600,000 were re‑issued from Treasury
for proceeds of £3,096,000.
3. The Company held the following categories of financial instruments as
at 30 April 2025:
Level 1 Level 2 Level 3 £'000 Total
£'000 £'000 £'000
Investments 1,462,968 - - 1,462,968
Financial assets - 2,869 - 2,869
Total 1,462,968 2,869 - 1,465,837
Level 1 reflects financial instruments quoted in an active market. The
Company's investment in Gold Bullion has been included in this level.
Level 2 reflects financial instruments the fair value of which is evidenced by
comparison with other observable current market transactions in the same
instrument or based on a valuation technique the variables of which include
only data from observable markets. The Company's forward currency contract has
been included in this level as fair value is achieved using the foreign
exchange spot rate and forward points which vary depending on the duration of
the contract.
Level 3 reflects financial instruments the fair value of which is determined
in whole or in part using a valuation technique based on assumptions that are
not supported by prices from observable market transactions in the same
instrument and not based on available observable market data.
There have been no changes to valuation technique over the year.
4. These are not statutory accounts in terms of Section 434 of the
Companies Act 2006. Full audited accounts for the year to 30 April 2025 will
be sent to shareholders in June 2025 and will be available for inspection at
28 Walker Street, Edinburgh EH3 7HR, the registered office of the Company. The
full Annual Report will be available on the Company's website www.patplc.co.uk
(http://www.patplc.co.uk) . A copy will also shortly be available for
inspection at the National Storage Mechanism at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The audited accounts for the year ended 30 April 2025 will be lodged with the
Registrar of Companies.
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