REG-Temple Bar Inv.Tst: Half-year Report
26/07/2018 16:50
Chairman’s Statement
I am delighted to present my first report to you as Chairman of the Company,
having succeeded John Reeve in May of this year.
It is pleasing to report that during the six months to 30 June 2018 Temple Bar
generated a total return on net assets of 3.1%, outperforming the benchmark
FTSE All-Share Index total return of 1.7%.
Dividend
A first quarterly dividend of 8.75p per share was paid on 29 June 2018 and the
directors have declared a second interim dividend, also of 8.75p per share,
again an increase of 5% on the equivalent dividend last year. This will be
paid on 28 September 2018 to those shareholders on the register of members as
at 7 September 2018. The ex-dividend date for this payment is 6 September
2018.
Board changes
As mentioned above, John Reeve retired as a director and chairman of the
Company on 24 May 2018, having provided 26 years of outstanding service. We
are extremely grateful to John for his leadership during this period which has
contributed in no small measure to the Company’s successful development. I
am greatly honoured to have been chosen by my fellow directors to succeed John
as Chairman.
Outlook
The current macro-economic situation in the U.K. is exceptionally uncertain.
Nevertheless, we believe that our managers have the necessary skills to
negotiate these choppy waters and find cheap, out of favour stocks that will
hopefully generate positive returns and further outperformance.
Arthur Copple
Chairman
26 July 2018
TWENTY LARGEST HOLDINGS AS AT 30 JUNE 2018
Company Industry Place of Primary Listing Valuation % of Portfolio
£’000
UK Treasury 1.25% 2018 Fixed Interest UK 80,404 7.6%
Capita Industrials UK 76,418 7.2%
Royal Dutch Shell Oil & Gas UK 68,260 6.4%
GlaxoSmithKline Healthcare UK 64,141 6.1%
HSBC Holdings Financials UK 62,913 5.9%
BP Oil & Gas UK 58,196 5.5%
Lloyds Banking Group Financials UK 45,073 4.2%
Barclays Financials UK 43,378 4.1%
Royal Bank of Scotland Financials UK 42,244 4.0%
Grafton Group Industrials UK 41,957 4.0%
Top Ten Investments 582,984 55.0%
SIG Industrials UK 37,902 3.6%
Tesco Consumer Services UK 32,754 3.1%
Travis Perkins Industrials UK 30,987 2.9%
Marks & Spencer Consumer Services UK 24,996 2.4%
Wm Morrison Supermarkets Consumer Services UK 21,872 2.1%
Land Securities REIT Financials UK 20,760 2.0%
Centrica Utilities UK 20,042 1.9%
Citigroup Financials USA 19,683 1.8%
ETFS Physical Silver Physical Gold and Silver UK 19,206 1.8%
Next Consumer Services UK 18,187 1.7%
Top Twenty Investments 829,373 78.3%
STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2018
(unaudited)
30 June 2018 30 June 2017 (unaudited) 31 December 2017 (audited)
(unaudited)
Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000
Investment income 20,768 - 20,768 18,985 - 18,985 33,990 - 33,990
Other operating income 6 - 6 4 - 4 8 - 8
Total Income 20,774 20,774 18,989 - 18,989 33,998 - 33,998
Gains on investments
Gains on investments held at fair value through profit or loss assets - 13,321 13,321 - 17,767 17,767 - 62,251 62,251
20,774 13,321 34,095 18,989 17,767 36,756 33,998 62,251 96,249
Expenses
Management fees (712) (1,068) (1,780) (699) (1,048) (1,747) (1,532) (2,215) (3,747)
Other expenses including dealing costs (360) (901) (1,261) (353) (511) (864) (600) (969) (4,569)
Profit before finance costs and tax 19,702 11,352 31,054 17,937 16,208 34,145 31,866 59,067 90,933
Finance costs (967) (1,461) (2,428) (1,308) (1,980) (3,288) (2,701) (4,078) (6,779)
Profit before tax 18,735 9,891 28,626 16,629 14,228 30,857 29,165 54,989 84,154
Tax (57) - (57) (108) - (108) (207) - (207)
Profit for the period 18,678 9,891 28,569 16,521 14,228 30,749 28,958 54,989 83,947
Earnings per share (basic and diluted) 27.93p 14.79p 42.72p 24.71p 21.28p 45.99p 43.30p 82.23p 125.53p
A first interim dividend of 8.75 pence per share in respect of the quarter
ended 31 March 2018 was paid on 29 June 2018.
A second interim dividend of 8.75 pence per share in respect of the quarter
ended 30 June 2018 was declared on 26 July 2018 and is payable on 28 September
2018.
The total column of this statement represents the Statement of Comprehensive
Income, prepared in accordance with IFRS. The supplementary revenue and
capital columns are both prepared under guidance published by the Association
of Investment Companies.
All items in the above statement derive from continuing operations.
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2018
(unaudited)
Ordinary share Share premium Capital Retained Total
capital account reserves earnings equity
£’000 £’000 £’000 £’000 £’000
BALANCE AT 1 JANUARY 2018 16,719 96,040 790,167 33,440 936,366
Profit for the period - - 9,891 18,678 28,569
Unclaimed dividends - - - 51 51
Dividends paid to equity shareholders - - - (17,541) (17,541)
BALANCE AT 30 JUNE 2018 16,719 96,040 800,058 34,628 947,445
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017
(unaudited)
Ordinary share Share premium Capital Retained Total
capital account reserves earnings equity
£’000 £’000 £’000 £’000 £’000
BALANCE AT 1 JANUARY 2017 16,719 96,040 735,178 32,003 879,940
Profit for the period - - 14,228 16,521 30,749
Unclaimed dividends - - - 11 11
Dividends paid to equity shareholders - - - (16,390) (16,390)
BALANCE AT 30 JUNE 2017 16,719 96,040 749,406 32,145 894,310
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018 (unaudited)
30 June 2018 (unaudited) £’000 30 June 2017 (unaudited) £’000 31 December 2017 (audited) £’000
NON-CURRENT ASSETS
Investments held at fair value through profit or loss* 1,059,300 986,691 1,035,670
CURRENT ASSETS
Receivables 4,721 4,557 3,613
Cash and cash equivalents 9,834 18,108 12,161
14,555 22,665 15,774
TOTAL ASSETS 1,073,855 1,009,356 1,051,444
CURRENT LIABILITIES
Interest bearing borrowings - (25,000) -
Payables (12,508) (1,200) (1,159)
TOTAL ASSETS LESS CURRENT LIABILITIES 1,061,347 983,156 1,050,285
NON-CURRENT LIABILITIES
Interest bearing borrowings (113,902) (88,846) (113,919)
NET ASSETS 947,445 894,310 936,366
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
Ordinary share capital 16,719 16,719 16,719
Share premium 96,040 96,040 96,040
Capital reserves 800,058 749,406 790,167
Retained earnings 34,628 32,145 33,440
TOTAL EQUITY 947,445 894,310 936,366
NET ASSET VALUE PER SHARE 1,416.79p 1,337.33p 1,400.22p
*Includes £80.4 million UK Treasury holding considered by the Board to be
held in lieu of cash.
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2018 (unaudited)
30 June 2018 30 June 2017 31 December 2017
(unaudited) (unaudited) (audited)
£000 £000 £000
Cash flows from operating activities
Profit before tax 28,626 30,857 84,154
Adjustments for:
Gains on investments (13,321) (17,767) (62,251)
Finance costs 2,428 3,288 6,779
Purchases of investments (1) (292,616) (180,266) (437,327)
Sales of investments (1) 293,926 184,694 437,261
Dividend income (20,502) (18,306) (32,410)
Interest income (272) (683) (1,588)
Dividends received 18,567 16,525 32,189
Interest received 836 701 1,248
(Increase)/decrease in receivables (6) 1,470 1,212
(Decrease)/increase in payables (1) 30 (10)
Overseas withholding tax suffered (57) (108) (207)
(11,018) (10,422) (55,104)
Net cash flows from operating activities 17,608 20,435 29,050
Cash flows from financing activities
Repayment of 9.875% 2017 debenture - - (25,000)
Proceeds from issue of 2.99% Private Placement Loan - - 25,000
Issue costs relating to 2.99% Private Placement Loan - - (121)
Unclaimed dividends 51 11 11
Interest paid on borrowings (2,445) (3,288) (6,587)
Equity dividends paid (17,541) (16,390) (27,532)
Net cash used in financing activities (19,935) (19,667) (34,229)
Net (decrease)/increase in cash and cash equivalents (2,327) 768 (5,179)
Cash and cash equivalents at the start of the period 12,161 17,340 17,340
Cash and cash equivalents at the end of the period 9,834 18,108 12,161
1. Purchases and sales of investments are considered to be operating
activities of the Company, given its purpose, rather than investing
activities.
RESPONSIBILITY STATEMENT
The Directors confirm to the best of their knowledge that:
*
the condensed set of financial statements contained within the half-year
report has been prepared in accordance with the Accounting Standards Board’s
Statement ‘Half-Yearly Financial Reports’;
*
the half yearly financial report includes a fair review of the information
required by Disclosure and Transparency Rule 4.2.7R of important events that
have occurred during the first six months of the financial year and their
impact on the condensed set of financial statements and a description of the
principal risks and uncertainties for the remaining six months of the
financial year; and
* in accordance with Disclosure and Transparency Rule 4.2.8R there have been
no related parties transactions during the six months to 30 June 2018 and
therefore nothing to report on any material effect by such a transaction on
the financial position or performance of the Company during that period.
The half-yearly financial report was approved by the Board on 26 July 2018 and
the above responsibility statement was signed on its behalf by:
Arthur Copple
Chairman
Notes
1. Comparative figures
The financial information contained in this half-year
report does not constitute statutory accounts as defined in section 434-436 of
the Companies Act 2006. The financial information for the six months ended
30 June 2018 and 30 June 2017 has not been audited.
The information for the year ended 31 December 2017
does not constitute statutory accounts, but has been extracted from the latest
published audited accounts, which have been filed with the Registrar of
Companies. The report of the auditors on those accounts contained no
qualification or statement under section 498(2) or (3) of the Companies Act
2006.
2. Publication
This half-year report is being sent to shareholders and
copies will be made available to the public at the Company’s registered
office and on its website.
For further information please contact:
Alastair Mundy
Investec Fund Managers Limited
020 7597 2000
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