REG-Temple Bar Inv.Tst: Half-year Report
08/08/2019 17:20
Chairman’s Statement
During the six months to 30 June 2019 Temple Bar generated a total return on
net assets of 11.9%, slightly underperforming the benchmark FTSE All-Share
Index total return of 13.0%, as the Value investment style that your managers
pursue remained out of fashion.
Dividend
A first quarterly dividend of 11.0p per share was paid on 28 June 2019 and the
directors have declared a second interim dividend, also of 11.0p per share,
again an increase of 25.7% on the equivalent dividend last year. This will be
paid on 30 September 2019 to those shareholders on the register of members as
at 13 September 2019. The ex-dividend date for this payment is 12 September
2018. It is important to reiterate the comment made in the announcement of the
first interim payment that the scale of the increase relative to the prior
year should not be taken as indicative of the likely increase in the dividend
for the year as a whole. The large increase in the interim payments reflects a
rebalancing exercise between the size of the three interim payments and the
final dividend. In the absence of any unforeseen circumstances the Board is
hoping to recommend an increase in the total dividend for the year of
approximately 10%.
Board
The process of Board refreshment has continued and as from 1(st) October
Sonita Alleyne and Shefaly Yogendra will be joining the Board. Sonita has
extensive experience in both public and private sectors, particularly in media
and Shefaly brings a wealth of expertise in digital and tech leadership, risk
and decision making. I am sure both these new Directors will bring interesting
new perspectives to our discussions. As previously announced, Sir Richard
Jewson will not be offering himself for re-election at the next AGM.
Investment Parameters
As highlighted in the Annual Report, we have been having discussions, both
internally and with shareholders, re any modifications to our investment
parameters. These discussions are ongoing. In the meantime, I would like to
thank the many shareholders and other interested parties who have responded
thus far.
Outlook
Future movement of UK share prices remain linked to the outcome of the Brexit
discussions and global instability. We have no special insight into their
likely resolution. However, over many years Temple Bar has demonstrated
resilience in even the most difficult of markets. We will endeavour to
continue to do so.
Arthur Copple
Chairman
8 August 2019
TWENTY LARGEST HOLDINGS AS AT 30 JUNE 2019
Company Industry Place of Primary Listing Valuation % of Portfolio
£’000
GlaxoSmithKline Healthcare UK 66,103 6.84%
Royal Dutch Shell Oil & Gas UK 64,914 6.72%
Capita Industrials UK 57,661 5.97%
Travis Perkins Industrials UK 56,494 5.85%
BP Oil & Gas UK 55,207 5.71%
Grafton Group Industrials Ireland 43,204 4.47%
Lloyds Banking Group Financials UK 40,474 4.19%
SIG Industrials UK 37,240 3.85%
Tesco Consumer Services UK 37,183 3.85%
Royal Bank of Scotland Financials UK 36,238 3.75%
Top Ten Investments 494,718 51.20%
Barclays Financials UK 34,380 3.56%
HSBC Holdings Financials UK 32,959 3.41%
Forterra Industrials UK 24,652 2.55%
Marks & Spencer Consumer Services UK 21,416 2.22%
Citigroup Financials USA 21,343 2.21%
easyJet Consumer Services UK 19,052 1.97%
Land Securities Group REIT Financials UK 18,072 1.87%
Kingfisher Consumer Services UK 18,050 1.87%
TP ICAP Financials UK 17,753 1.84%
Next Consumer Services UK 16,617 1.72%
Top Twenty Investments 719,012 74.42%
STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2019
(unaudited)
30 June 2019 30 June 2018 31 December 2018 (audited)
(unaudited) (unaudited)
Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000
Investment income 22,387 - 22,387 20,768 - 20,768 37,258 - 37,258
Other operating income 12 - 12 6 - 6 26 - 26
Total Income 22,399 - 22,399 20,774 - 20,774 37,284 - 37,284
Gains/(losses) on investments
Gains/(losses) on investments held at fair value through profit or loss assets - 79,446 79,446 - 13,321 13,321 - (131,528) (131,528)
22,399 79,446 101,845 20,774 13,321 34,095 37,284 (131,528) (94,244)
Expenses
Management fees (755) (1,089) (1,844) (712) (1,068) (1,780) (1,503) (2,168) (3,671)
Other expenses including dealing costs (285) (260) (545) (360) (901) (1,261) (559) (1,427) (1,986)
Profit before finance costs and tax 21,359 78,097 99,456 19,702 11,352 31,054 35,222 (135,123) (99,901)
Finance costs (983) (1,488) (2,471) (967) (1,461) (2,428) (1,962) (2,968) (4,930)
Profit/(loss) before tax 20,375 76,609 96,985 18,735 9,891 28,626 (33,260) (138,091) (104,831)
Tax (96) - (96) (57) - (57) (161) - (161)
Profit/(loss) for the period 20,280 76,609 96,889 18,678 9,891 28,569 33,099 (138,091) (104,992)
Earnings per share (basic and diluted) 30.33p 114.56p 144.89p 27.93p 14.79p 42.72p 49.50p (206.50)p (157.00)p
A first interim dividend of 11.0 pence per share in respect of the quarter
ended 31 March 2019 was paid on 28 June 2019.
A second interim dividend of 11.0 pence per share in respect of the quarter
ended 30 June 2019 was declared on 8 August 2019 and is payable on 30
September 2019.
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 2019
(unaudited)
Ordinary share Share premium Capital Retained Total
capital account reserves earnings equity
£’000 £’000 £’000 £’000 £’000
BALANCE AT 1 JANUARY 2019 16,719 96,040 652,076 37,342 802,182
Profit for the period - - 76,609 20,280 96,889
Unclaimed dividends - - - 9 9
Dividends paid to equity shareholders - - - (21,045) (21,045)
BALANCE AT 30 JUNE 2019 16,719 96,040 728,685 36,591 878,035
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 FINANCIAL POSITION AS AT 30 JUNE 2019 (unaudited)
30 June 2019 (unaudited) 30 June 2018 (unaudited) £’000 31 December 2018 (audited) £’000
£’000
NON-CURRENT ASSETS
Investments held at fair value through profit or loss 966,271 1,059,300 905,125
CURRENT ASSETS
Receivables 5,584 4,721 3,231
Cash and cash equivalents 21,204 9,834 9,005
26,788 14,555 12,236
TOTAL ASSETS 993,059 1,073,855 917,361
CURRENT LIABILITIES
Payables (1,014) (12,508) (1,208)
TOTAL ASSETS LESS CURRENT LIABILITIES 992,045 1,061,347 916,153
NON-CURRENT LIABILITIES
Interest bearing borrowings (114,010) (113,902) (113,971)
NET ASSETS 878,035 947,445 802,182
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
Ordinary share capital 16,719 16,719 16,719
Share premium 96,040 96,040 96,040
Capital reserves 728,685 800,058 652,076
Retained earnings 36,591 34,628 37,347
TOTAL EQUITY 878,035 947,445 802,182
NET ASSET VALUE PER SHARE 1,312.99p 1,416.79p 1,199.56p
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2019 (unaudited)
30 June 2019 30 June 2018 31 December 2018
(unaudited) (unaudited) (audited)
£000 £000 £000
Cash flows from operating activities
Profit before tax 96,985 28,626 (104,831)
Adjustments for:
Gains on investments (79,446) (13,321) 131,528
Finance costs 2,471 2,428 4,930
Purchases of investments (1) (56,898) (292,616) (513,298)
Sales of investments (1) 75,046 293,926 512,712
Dividend income (22,224) (20,502) (36,728)
Interest income (175) (272) (545)
Dividends received 19,591 18,567 36,115
Interest received 359 836 1,365
Decrease/(increase) in receivables - (6) 25
Increase/(decrease) in payables 54 (1) (199)
Overseas withholding tax suffered (96) (57) (161)
(61,318) (11,018) 135,744
Net cash flows from operating activities 35,667 17,608 30,913
Cash flows from financing activities
Unclaimed dividends 9 51 51
Interest paid on borrowings (2,432) (2,445) (4,877)
Equity dividends paid (21,045) (17,541) (29,243)
Net cash used in financing activities (23,468) (19,935) (34,069)
Net (decrease)/increase in cash and cash equivalents 12,199 (2,327) (3,156)
Cash and cash equivalents at the start of the period 9,005 12,161 12,161
Cash and cash equivalents at the end of the period 21,204 9,834 9,005
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 2019 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 8 August 2019
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 2019 and 30 June 2018 has not been audited.
The information for the year ended 31 December 2018
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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