REG - Witan Inv Tst PLC - Final Results
15/03/2023 07:00
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RNS Number : 9845S Witan Investment Trust PLC 15 March 2023
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WITAN INVESTMENT TRUST PLC
This announcement contains regulated information
Annual Financial Report for the year ended 31 December
2022
Chairman's Report
HIGHLIGHTS
· Full-year NAV total return of -10.3%. Share price total return -9.8%
· The benchmark returned -6.2%, and the AIC Global sector's NAV total
return was
-20.4%
· Ten-year NAV total return of 159%, compared with benchmark's 158%
· Share price discount to NAV 5.4% at year-end (2021: 5.8%)
· The NAV uplift from share buybacks offset the majority of the
Company's ongoing charges during the year
· Dividend increased by 3.6% to 5.8 pence, more than double that paid
in 2012 and an unbroken 48 year run of increases
· 2023 NAV total return to 10 March +5.6%, 3.6% ahead of the benchmark
total return of 2.0%
2022 was expected to be a year of continuing recovery, as the world left
behind the earlier restrictions introduced to control the pandemic. In the
event, positive reopening developments (other than in China) were overwhelmed
by a surge in inflation, exacerbated by Russia's invasion of Ukraine,
prompting central banks worldwide to raise interest rates sharply from the low
levels that had prevailed for many years. The combination of increases in the
price of essentials (such as food and energy) and rising borrowing costs
reversed earlier hopes for economic recovery, creating near-recessionary
conditions in many economies, particularly those most dependent on Russian
energy and Ukrainian food exports.
Aside from the direct economic disappointments, 2022's increase in interest
rates and the tightening of global liquidity (as central banks turned from
quantitative easing to quantitative tightening) led to a widespread derating
of investment markets. Amongst the most extreme corrections occurred in the
government bond markets, where the years of easy money had driven yields near
to zero and in some cases to negative levels, offering little or no absolute
return or protection against inflation. The bond bubble comprehensively burst
in 2022, along with the over-optimistic valuations embedded in many technology
companies and the more speculative markets such as crypto tokens.
There is a healthy aspect to this, with cash and bonds now offering tangible
returns and growth stocks now available on more plausible ratings. Nonetheless
the effect on investors' wealth of falls in almost all assets, allied to the
geopolitical and inflationary headwinds, fuelled an increasingly negative
mood. As a consequence, 2022 will go down as a highly challenging year for
investors, with both equities and bonds (at least in the US) falling in tandem
for the first time for 30 years.
At the start of the year, our portfolio reflected expectations of a broadening
of economic growth. The unforeseen onset of war therefore had a negative
impact on Witan's performance. Our NAV total return in the first nine weeks of
2022 was -15%, 6% behind the benchmark's return. During the rest of the year,
Witan recovered some of the lost ground, ending the year with a total return
of
-10.3%, 4.1% behind the benchmark's loss of 6.2%. Whilst it is disappointing
that we underperformed this measure over the year as a whole, we outperformed
the AIC Global sector after lagging it in recent years. Shareholders can also
take comfort from the steady and improving performance our managers delivered
after the initial shock, during an exceptionally volatile period that was
beset by political instability, international crises and inflation reaching
levels not seen in 40
Page 2 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Chairman's Report (continued)
years. Andrew Bell's CEO report covers these points, as well as the
macroeconomic backdrop, in more detail.
The improvement in performance has accelerated during the early months of
2023, as our portfolio was positioned to benefit from an improvement in
economic expectations, relative to the unusually pessimistic investor mood at
the end of 2022. Whilst this is a short period, Witan's NAV total return to 10
March 2023 is +5.6%, 3.6% ahead of our benchmark's return of 2.0%.
Over the long term, since Witan adopted a multi-manager approach in 2004, we
have beaten the returns on our benchmark and raised the dividend well ahead of
the rate of inflation. Even after the underperformance since 2020, over the
ten years to the end of 2022 Witan achieved a NAV total return of 159% and a
share price total return of 180%, compared with the benchmark's 158% return
and (with inflation now back on investors' radar) well ahead of the 30% rise
in the UK Consumer Price Index over the period.
RESPONSIBLE INVESTMENT
In last year's Annual Report, we introduced our updated responsible investment
strategy which, in addition to our commitment to the Net Zero Asset Managers
initiative ('NZAM'), set a target to have a portfolio which consists entirely
of sustainable businesses by 2030. This does not impose blanket exclusions on
our managers, as we believe that engagement with companies often has a greater
positive impact than divestment. However, if engagement has run its course and
ESG failings undermine the investment rationale, they are able to exit, or
avoid, an investment in order to protect our shareholders' capital. This is
one of the most significant advantages of active management, as passive (index
tracking) funds can find it difficult to reconcile their commitments to
responsible investment initiatives with their inability to divest from
companies with poor governance standards.
Ongoing ESG oversight, as part of the investment process, remains one of the
key responsibilities of Witan's Executive team and of our managers. Our
bespoke approach to responsible investment focuses on identifying companies'
progress and direction of travel, rather than simply their sustainability
credentials at a point in time.
In 2022 we focused on two key projects to support this approach. Firstly,
formulating our NZAM commitments, made in shareholders' long-term best
interests and, secondly, implementing our "Sustainable by 2030" commitment.
This entailed assessing the current characteristics of the portfolio (using
our own criteria and our managers' knowledge of investee companies) and
identifying how to measure progress. The Board asked James Hart, Witan's
Investment Director, to lead on this programme, which has provided us with
valuable insights into how our managers and portfolio companies approach ESG
issues and created a baseline from which our sustainability performance can be
measured. The responsible investment section, which is on pages 18 to 25 of
the Annual Report, introduces the framework, sets out its preliminary results
and reports on other progress made during the year.
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WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Chairman's Report (continued)
2022 DIVIDEND
A fourth interim dividend of 1.60 pence was declared in February 2023, payable
on 17 March 2023. As a result, the dividend for the year increased by 3.6% to
5.80 pence per share (2021: 5.60 pence). This year's dividend was covered an
improved 84% by 2022 revenue earnings (2021: 65%), with a reduced call of
£6.4 million on our revenue reserves (in 2021 we used £14.6 million).
The Board expects portfolio dividends to recover further in coming years and
it is the Company's intention to continue to make use of retained earnings to
increase the dividend to shareholders annually while full cover is restored.
We have increased the dividend every year for the last 48 years and the latest
dividend is more than double that paid in 2012. Although 2022's increase does
not match the exceptionally high rate of UK inflation in 2022 (10.5% at the
year-end), Witan's dividend has grown substantially ahead of UK inflation over
the past 5 and 10 years.
BOARD COMPOSITION
The Board currently consists of ten directors, nine of whom are non-executive,
representing a broad diversity in background, experience, ethnicity and
gender. Above all, the Board has the right balance of skills to oversee the
Company's affairs while fully meeting formal corporate governance guidelines
on diversity.
Suzy Neubert, our Senior Independent Director, will be standing down at this
year's AGM, after serving on the Board for 11 years. On behalf of
shareholders, I would like to thank Suzy for her valuable insights, judgment
and advice over this period. She will be succeeded as Senior Independent
Director by Rachel Beagles, who joined the Board in 2020.
As part of the Board's succession planning, two new Directors joined the Board
in February and will be standing for election at this year's AGM. Shauna Bevan
has particular experience in selecting investment managers for the wealth
management sector, while Shefaly Yogendra brings wider experience from the
corporate sector. Both have board level experience in investment trusts and I
have pleasure in welcoming each of them to Witan's Board.
Following these changes, after the AGM the Board will consist of eight
non-executive directors and one executive director, our CEO Andrew Bell. All
directors stand for re-election each year.
AGM
We very much look forward to being able to meet shareholders again at this
year's Annual General Meeting ('AGM'). Our 115th AGM will be held on 4 May
2023, at the Merchant Taylors' Hall. For those not able to attend in person,
there will be the opportunity to attend the meeting virtually and put
questions to the Board. Details will be included in the formal notice of the
meeting which will be sent to shareholders at the end of March.
Andrew Ross
Chairman
14 March 2023
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WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's Review of the year
The end of the zero rates era
2022 may come to be seen as the end of an era in economic policy terms. A
prolonged period of low interest rates had fostered speculative conditions in
a range of investment markets, from government bonds (widely considered to be
conservative investments) to the more speculative realms of early-stage
technology companies, crypto markets and "non-fungible tokens". The Russian
war in Ukraine made tackling the inflationary consequences of the pandemic
more urgent and harder to manage, as inflation in many countries at the end of
2022 was more than double the rate expected a year earlier, reaching levels
not seen since the 1980s. The resulting squeeze on consumers' spending power
created an increasing headwind for economic growth.
Inflationary pressures were already building in 2021, due to the pandemic's
shocks to demand and to the world's ability to supply goods and services. When
economies reopened demand surged, while supply chains remained disrupted and
the global workforce was reduced by mortality, sickness, early retirement and
barriers to free movement. Allied to this, years of underinvestment in energy
supply (linked to climate change concerns) left the world short of oil and
gas, whose supply was further disrupted by sanctions on Russian energy
exports.
Although the level of interest rates remains low by historic standards, the
pace of increase was unusually rapid, particularly in the US. In addition,
central banks, having been major buyers of government bonds in recent years,
stopped buying and began to reduce their holdings. With less liquidity
available, on more expensive terms, the price of financial investments fell
across the board, with the greatest declines in those which had previously
inflated the most. One eye-catching statistic is that the price of the longest
dated UK index-linked gilt (a security with a government guarantee of
inflation protection) fell by more than the price of bitcoin (which carries no
guarantees of anything) - a reminder that "safety" rests upon the price paid,
not simply the product characteristics. There was almost no place to hide,
with the energy sector a rare positive performer in a predominantly negative
environment.
As noted in the Chairman's Statement, even after the initial dramatic shock to
confidence caused by Russia's invasion of Ukraine, sentiment remained highly
changeable throughout the year, affected by increased concerns over inflation,
the drag on growth from rising commodity prices, fears of conflict in Taiwan,
attempted nuclear blackmail in Ukraine and topsy-turvy politics at home in the
UK. Most global equity regions showed local currency declines exceeding 10%,
although these were mitigated by sterling's weakness, particularly against the
US dollar. The UK was a standout performer, with a marginal positive return,
helped by its exposure to the oil and commodity sectors. However, the UK's
mid-sized and smaller companies indices both suffered falls of more than 16%.
Global equities finished the year with a loss of 8% in sterling terms, with
the US (-8%) and emerging markets (-10%) at the weaker end, Europe down 7% and
Japan (-4%) performing relatively well.
Page 5 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's review of the year (continued)
By the year end, there were signs that inflation was peaking in the UK and
elsewhere, although interest rates continue to rise to counter the risk that
2022's inflationary surge might become entrenched. Growth forecasts for the
coming year are subdued, with much depending on whether slowing inflation
allows central banks to take their feet off the brakes before a global
recession ensues. One bright spot is that China's abandonment of its
zero-Covid policy makes it likely that its economy will grow more rapidly in
2023 than last year, acting as a counterweight to slowdowns elsewhere.
WITAN'S PERFORMANCE
Witan's NAV total return in 2022 was -10.3%, which was 4.1% behind the 6.2%
decline in our benchmark. This was more than entirely suffered during the
market's immediate reaction to the Russian invasion of Ukraine, as the
remaining ten months of the year saw our portfolio recover around one third of
the initial setback in both absolute and relative terms.
The past three years have seen unprecedented events affect financial markets
and it is personally frustrating (professionally and as a shareholder) that
Witan's longer-term record of outperformance has been eroded by
underperformance since 2020, concentrated in the first quarter of 2020, with
the advent of the pandemic, and the period leading up to the Russian invasion
of Ukraine in February 2022.
A year ago, we stated that, despite the uncertainties created by Russia's
aggression, our managers believed that being positioned for a recovery from
the Covid-19 pandemic and the prospect of a broadening economic recovery
remained appropriate, although the timing had become less certain and the
risks had increased. So far, this has been borne out by the subsequent
recovery in performance. It is often hardest to stick to a strategy when the
markets have just punished it with underperformance but (while learning from
experience) it makes no more sense to invest using the rear-view mirror than
to drive a car looking backwards.
Witan's portfolio is invested via a diversified group of mainstream and
specialist managers, with well-tested and resourced investment approaches. It
includes core holdings of quality growth companies offering compounding
earnings growth, as well as exposure to sectors expected to benefit from
economic growth, from decarbonisation, and from the growth in infrastructure
spending.
PRINCIPAL PERFORMANCE DRIVERS
The financial statements on pages 89 to 114 of the Annual Report (see extracts
on pages 25 to 32 below) set out the required statutory reporting measures of
the Company's financial performance.
A chart on page 11 of the Annual Report shows the contributions (in pence per
share) attributable to the various components of investment performance and
costs, which together constitute the decline from the 267.4 pence starting NAV
to the year-end NAV of 234.1 pence, after the payment of dividends to
shareholders.
A breakdown of the relative performance attribution in 2022 (based on the
Company's financial statements) is shown in the table below.
Page 6 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's review of the year (continued)
Our portfolio managers collectively underperformed significantly during the
year, so our overall returns lagged our benchmark. Gearing was a drag on
returns for the first half of the year (when our NAV hit its low point) but
this was mitigated by a positive contribution during the second half. As in
2021, Witan benefited from taking advantage of the widening in our discount to
buy back 7.9% of our shares, which generated an uplift in NAV of £10.9
million, offsetting the majority of our ongoing charges. In addition, the rise
in gilt yields, while weighing on equity market performance, reduced the fair
value of our fixed-rate debt, thus benefiting the NAV.
BREAKDOWN OF THE PERFORMANCE ATTRIBUTION IN 2022 (%)
Net asset value total return -10.3 Portfolio total return (before costs) -12.3
Benchmark total return -6.2 Benchmark total return -6.2
Relative investment performance -6.1
Investment management costs -0.4
Investment contribution -6.5
Gearing impact -1.0
Borrowing costs -0.4
Gearing contribution -1.4
Effect of changed fair value of debt 3.6
Share buybacks 0.5
Other contributors 4.1
Other operating costs and tax -0.3
-0.3
Relative performance((1)) -4.1 -4.1
(1) N.B. Figures may not sum due to rounding.
PORTFOLIO STRUCTURE AND MANAGER PERFORMANCE
Our portfolio is structured with c.75% allocated to mainstream 'core' managers
(five global, one UK) and the 25% balance allocated to specialist regional or
sector managers; up to 15% may be invested in investment companies offering
exposure to faster-growing or otherwise attractive asset categories.
There were no changes to the six core managers in 2022, although small
additions were made to Jennison following weakness in the first half. Their
concentration on companies with exceptional growth prospects is attractive in
the longer term, with the derating seen in 2022 offering a better entry point
for what currently remains our smallest global manager allocation.
We increased our allocation to the GMO Climate Change fund in June, after a
period of market weakness, reflecting our increasing conviction in this as a
long-term growth area. The fund has delivered strong returns since purchase in
2019 and the price dip offered a good chance to increase our exposure.
Page 7 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's review of the year (continued)
Our third-party managers implement mandates set by the Company. Each manager's
mandate, benchmark, investment style and date of appointment are shown on
pages 28 to 31 of the Annual Report. Their returns during the year and since
appointment are set out in the table below. Only three of our external
managers (GMO Climate Change, Lansdowne and Lindsell Train) outperformed their
benchmarks during the year. Over the longer term, since inception the majority
of the managers have outperformed their benchmarks. The exceptions are
Jennison and WCM, our two growth specialists which were appointed in Q3 2020,
with their relatively low allocations reflecting the elevated valuations in
parts of the growth company universe (which have corrected during the markets
falls of 2022). Lindsell Train's global portfolio has lagged overall since it
was adopted in 2020, due to a poor year in 2021, but they outperformed in 2022
and have materially outperformed for Witan since their original appointment in
2010, albeit running a UK portfolio from 2010 to 2019.
The principal underperformer in 2022 was Jennison, whose portfolio was exposed
more than most to some long-term growth companies whose ratings had risen
sharply during the period of abundant liquidity and which came down to earth
in 2022. Their 24% underperformance was mostly incurred during the first half.
WCM, another growth manager, also underperformed for similar reasons. Artemis
underperformed the relatively strong UK market, owing to its longstanding
concentration on overlooked "self-help" opportunities in the mid-cap part of
the market. The other notable underperformer in 2022 was the directly-held
portfolio of investment companies (discussed in the following section).
As noted earlier, our NAV performance in the second half of the year improved
and was ahead of our equity benchmark over that period. We believe our diverse
range of managers is well-positioned for 2023 which, with a number of the
principal risks substantially factored into equity prices, has a better chance
of favourably surprising expectations than was the case in 2022.
INVESTMENT MANAGERS' PERFORMANCE
Witan assets managed as at 31.12.22((1)) Performance in 2022 Performance since appointment %
%
Appoint-
ment date
Investment manager and mandate £m % Manager Benchmark Manager Benchmark
CORE
Jennison (Global) 31.08.20 108.3 6.0 (31.2) (7.6) (6.6) 8.4
Lansdowne (Global) 14.12.12 313.9 17.4 (6.2) (7.6) 13.0 11.8
Lindsell Train (Global) 31.12.19 300.7 16.7 (5.2) (7.6) 3.8 7.8
Veritas (Global) 11.11.10 316.2 17.5 (10.9) (7.6) 11.7 10.6
WCM (Global) 31.08.20 199.8 11.1 (21.5) (7.6) 1.7 8.4
Artemis (UK) 06.05.08 118.9 6.5 (9.7) 1.6 7.8 5.5
SPECIALIST
GMO (Climate Change) 05.06.19 106.8 5.9 0.4 (7.6) 17.1 9.3
GQG (Emerging Markets) 16.02.17 101.4 5.6 (10.6) (9.6) 7.0 3.7
Unquoted Growth (Specialist Funds) 02.07.21 32.7 1.9 (6.5) (6.2) (7.8) 0.0
Witan Direct Holdings (Specialist Funds) 19.03.10 204.1 11.3 (15.0) (6.2) 9.6 8.7
(1) Amount and percentage of Witan's investments managed, excluding centrally
managed cash.
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WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2022
CEO's review of the year (continued)
DIRECTLY HELD INVESTMENTS
The return on the portfolio of directly managed investment company holdings
was -15.0%, well behind the 6.2% fall in our composite benchmark. The
principal detractors were the two residual holdings inherited from our holding
in Electra Private Equity PLC, one a restaurant group and the
other a specialist retailer. Clearly, economic conditions in 2022 did not
favour either sector. Added to this, the Electra shareholder base had little
overlap with the natural holders of two UK micro-cap companies, leading to an
overhang, with some legacy holders (not including Witan) wishing to sell. The
resulting fall in value accounted for the majority of the decline in the
direct holdings' value.
The other main detractor was Princess Private Equity which (for reasons of
mismanagement and poor communication) unexpectedly cancelled its second
dividend in 2022, the consequent loss of investor confidence contributing to a
36% fall in the share price total return, despite the NAV being little changed
in sterling terms. This (in our view avoidable) action was particularly
unwelcome for a company we have backed since 2011 and we forcefully
communicated our views to the Board. Even after this fall, the holding has
delivered returns close to 10% p.a. over 12 years and we anticipate a
restoration of dividends in 2023 and a recovery in performance. Syncona's NAV
fell a resilient 3% but the price moved from a 6% premium to a 7% discount,
affected by adverse sentiment in the biotech sector. Similarly, Schroder Real
Estate delivered a single digit decline in NAV total return but also derated
along with the rest of the property sector. We reduced the holding at
materially higher prices in April and, with the dividend having increased
above pre-pandemic levels, have taken advantage of the subsequent setback to
add.
On the positive side, a notably good performer was BlackRock World Mining
Trust, with a 26% total return, in addition to which we sold a significant
proportion of the holding in early 2022 at higher prices. VH Global
Sustainable Energy, which was 2% down (despite an 8% return in NAV terms) also
proved resilient.
One unusual feature this year was that the political turmoil in the UK gave us
an opportunity to make two profitable investments in the Gilt market, with low
risk. Witan has £155 million of long-term fixed rate debt issued at an
average yield of under 3%. When gilt yields went through 5% in the wake of the
Truss administration's "fiscal event", we invested £24 million in a gilt
closely matching the maturity of our debt, reasoning that if gilt prices
continued to fall we could hold to maturity, having locked in an income gain
relative to the interest rate we were paying. In the event, the distressed
conditions in the market reversed, allowing us to register a rapid profit. A
similar opportunity arose two weeks later, with the gains on the two
investments totalling c.£4.3 million. Although out of the mainstream of what
we invest in, it demonstrates our investment flexibility.
The common factor in this year's direct holdings underperformance was a
widening in discounts, contrasting with generally resilient or robust
underlying business performances. This gives us confidence in the portfolio's
prospects for 2023 and beyond.
The direct portfolio was 10.9% of the investment portfolio at the start of the
year and 11.3% at the end of 2022. Over the period since March 2010, it has
delivered a compound annual return of 9.6%, outperforming Witan's benchmark by
0.9% p.a. Aside from performance, it gives Witan's shareholders exposure to
specialist asset categories that our core managers (and many shareholders
themselves) do not cover.
Page 9 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's review of the year (continued)
The two specialist Unquoted Growth funds investing predominantly in unlisted
assets amount to 1.9% of assets. Lansdowne Opportunities Fund (0.9% of assets)
declined in value by c 24% during the year, principally owing to the fall in
price of its largest holding, Oxford Nanopore Technologies, since its listing
in October 2021. Greenoaks Lindenwood (1.0%) experienced a 3% decline in
sterling terms, with the strength of the dollar against sterling mitigating a
14% fall in the dollar valuation of its assets. Regular reports (monthly and
quarterly respectively) are received on the funds, whose valuation policies
follow private equity guidelines.
GEARING ACTIVITY DURING THE YEAR
Gearing ranged between 10% and 14% during the year. Although it would have
been desirable, with the benefit of hindsight, not to be geared before the
Russian invasion, once the markets had fallen to reflect this shock we elected
to keep our existing gearing in place and to increase it following the sharp
market decline in the early summer. The average gearing level of 12.5%
nonetheless cost 1% in a year of falling markets, or 1.4% after taking account
of the (mostly fixed) interest charges. Gearing has contributed positively to
returns in seven out of the past ten years, as illustrated in the KPI chart on
page 5 of the Annual Report.
Under its Articles of Association, the Company may borrow up to 100% of the
adjusted total of shareholders' funds. However, the Board's longstanding
policy is not to allow gearing (as defined on page 118 of the Annual Report)
to be more than 20%, other than temporarily in exceptional circumstances.
Where appropriate, the Company may hold a net cash position.
At the end of 2021, net gearing (the total value of borrowings less cash) was
11.3% of net assets. At the end of 2022, gearing (on the same basis) was
14.2%.
STRUCTURE OF BORROWINGS
The Company has fixed-rate borrowings (including £2.6 million preference
shares) of £158 million, consisting principally of:
Secured Notes 2035 3.29% £21m
Secured Notes 2045 3.47% £54m
Secured Notes 2051 2.39% £50m
Secured Notes 2054 2.74% £30m
The Company has a £125 million one-year borrowing facility (expandable to
£150 million), providing additional flexibility over the level of gearing, as
well as enabling the Company to borrow in currencies other than sterling, if
deemed appropriate. The drawn balance was £96.5 million at the end of 2022
(2021: £98.0 million). The average interest rate on the Company's fixed-rate
borrowings is 3.0% (2021: 3.0%). The average interest rate, including
short-term borrowings, is currently 3.5% (2021: 2.1%).
Page 10 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's review of the year (continued)
The rise in gilt yields means that the fair value of the Company's fixed-rate
debt (valued based on the relevant gilt yield +1.4%) has declined during the
year and stands at a discount to its eventual repayment value. As in previous
years (when the fair value shift often detracted from returns), the Company
continues to follow AIC guidance that fair valuing both assets and liabilities
is the most appropriate basis for calculating NAVs, while continuing to
release daily NAVs calculated with debt at par value as well as at fair value.
Witan will either invest its long-term borrowings fully or neutralise their
effect with cash balances according to its assessment of the markets. The
Company's third-party managers are not permitted to borrow within their
portfolios but may hold cash.
DERIVATIVES ACTIVITY
An investment of £12 million was made in US equity index futures in September
and sold for a £1 million gain in November. This enabled Witan to invest in
the US market when it was at a low index level, without returns being eroded
by the subsequent recovery in sterling from its politically depressed level at
the end of September. There were no derivatives positions outstanding at the
year end.
DIVIDEND AND REVENUE PERFORMANCE
The Company has already paid three quarterly dividends of 1.40 pence per share
in respect of 2022 which, together with the fourth interim dividend of 1.60
pence per share, increases the total distribution for the year to 5.80 pence
(2021: 5.60 pence). This marks the 48th consecutive year of dividend growth.
At the end of 2021, retained revenue reserves were £37.5 million (after
deducting the fourth interim dividend payment). The purpose of such reserves
is to enable income payments to shareholders to be supported during leaner
times, and £6.4 million was used towards funding the 2022 dividend (2021:
£14.6 million). Revenue reserves were £31.3 million at the end of 2022,
after allowing for the fourth interim dividend payment.
Revenue earnings per share rose by 33% to 4.78 pence per share in 2022. The
recovery in revenue earnings has facilitated an increase in the dividend, an
increased level of dividend cover (from 65% to 84%) and a much lower call on
past revenue reserves.
The Board has reviewed the prospects for portfolio dividend growth in 2023 and
future years and, recognising the importance for many shareholders of a
reliable and growing income, intends to use revenue reserves to bridge what is
expected to be a narrowing gap between portfolio revenue earnings and the
dividends paid to shareholders. The Board anticipates dividend cover improving
in coming years, alongside continued annual dividend growth.
2023 DIVIDENDS
The first three quarterly payments for 2023 (in June, September and December)
will, in the absence of unforeseen circumstances, be paid at a rate of 1.45
pence per share (2022: 1.40 pence), being one quarter of the 5.80 pence per
share full-year payment for 2022. The fourth payment (in March 2024) will be a
balancing amount, reflecting the difference between the three quarterly
dividends already paid and the payment decided for the full year.
Page 11 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's review of the year (continued)
WITAN'S SHARES IN THE MARKET - LIQUIDITY AND DISCOUNTS
Witan is a member of the FTSE 250 Index, with a market capitalisation of over
£1.5 billion.
The Board has always paid attention to discount-related issues and has, over
many years, made significant use of share buybacks, when Witan's shares have
stood at a discount as well as being prepared to issue shares at a premium to
NAV to meet demand from investors. Both actions are accretive to NAV, provide
liquidity in the market and help to moderate discount volatility.
WITAN INVESTMENT TRUST DISCOUNT TREND
The discount trend during the past five years is illustrated in a chart on
page 15 of the Annual Report. Along with others in the sector, the discount
widened significantly for much of 2022. Witan was active in buying back
shares, helping to moderate the level of the discount, as well as delivering
an uplift to NAV. During the year 58.2 million shares were bought back (7.9%
of the total at the start of the year), at an average 7.8% discount to NAV,
which resulted in an uplift to NAV of £10.9 million, or 1.6 pence per share.
For perspective, this sum exceeds the investment management fees paid to our
external managers, offsetting the majority of the Company's ongoing charges.
The discount finished the year at 5.4% (2021: 5.8%) and the average discount
during the year was 7.8% (2021: 6.9%).
Discounts are affected by many factors outside the Company's control but where
it is in shareholders' interests (taking account of market conditions), the
Company remains prepared to buy back shares at a discount to NAV or to issue
shares (though only at a premium). It remains a long-term objective to create
sustainable liquidity in Witan's shares at or near to asset value and the
robust actions taken over recent years are evidence of this continuing
commitment.
OUTLOOK
2023 began with interest rates and economies poised close to potential turning
points. In the case of rates, after a flurry of increases in late 2022 we may
be near a peak, even if the shape is likely to be more like Table Mountain
than the Matterhorn. After a decade or more of zero or negative rates, central
banks will be keen to retain more normal levels of interest rates, quite apart
from continuing to bear down on inflationary pressures, which may be waning
but have not disappeared. In the case of economies, stagnation or moderate
recession is widely forecast for part of 2023 but the interesting question is
when the headwinds from energy prices wane and the tailwind from China's
reopening quickens, helping engender a cyclical recovery.
China's abandonment of its zero-Covid policy and likely economic acceleration
this year is a significant offset to the expected slowdown elsewhere. China's
slowdown in 2022 fortuitously blunted the inflationary impact from commodities
and gave supply chains time to normalise but at the cost of a dramatic slowing
in its own growth rate. Pent-up demand, a restoration of industrial production
and determined government efforts to end the slump in China's property sector
are likely to mean the world's second largest economy is the only major centre
to pick up speed in 2023, mitigating the weakness elsewhere.
Page 12 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
CEO's review of the year (continued)
The past year has been dominated by the effects of President Putin's
infliction of war and destruction on Ukraine. Although predicting how this
conflict will evolve or be solved is hazardous, developments that could prove
less negative than in 2022 seem as plausible as the opposite. Concerns that
relations between China and Taiwan could descend into conflict have reduced,
possibly influenced by Russia's problems following its own aggression,
although relations between the US and China remain tetchy.
Falling inflation in many economies has moderated, though not eliminated, the
risk of over-aggressive monetary tightening and increased the possibility of
either a soft landing for the world economy or a period of relatively mild
recession. This should allow secular boosts to growth to take over and
favourably alter the outcome for 2024 and beyond. 2022's geopolitical events
will lead to higher defence spending, resilience investment (to reduce risks
from supply chain disruption) and reshoring of capacity for strategically
important sectors such as semiconductors and rare earths. The energy crisis
seems likely to accelerate efforts to reduce dependence on unreliable
producers of (ultimately undesirable) fossil fuels. We anticipate greater
infrastructure investment in sustainable energy sources, as well as a
shorter-term boost to investment in producing the hydrocarbons needed until
sustainable sources can render them redundant.
Inflation seems likely to be higher in the coming decade than was the norm
prior to 2022. Although there will be little tolerance for the destabilising
inflation rates of the past year, indebted governments and their central banks
will be aware that moderate inflation is an effective way to reduce debt
burdens, particularly when it coincides with consistent economic growth.
Current debt levels appear intractable without stronger economic growth so
governments and central banks are likely to seek (or condone) faster inflation
than the 2% norm of recent decades, while placing a high priority on economic
growth, partly justified by the secular objectives noted earlier.
Setbacks in investment markets such as those experienced in 2022 are rarely
welcomed by those whose savings are impacted but they produce the platform
from which better longer-terms can be achieved. In the wake of the falls, a
wider range of assets can be rationally invested in once more, including cash,
bonds and growth opportunities whose attractions were compromised by
over-valuation. With 2023 having begun at a time of privation for many and
widespread pessimism about the future, there is a risk that some of the
longer-term positive drivers for growth in coming years are being overlooked.
Andrew Bell
Chief Executive Officer
14 March 2023
Page 13 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2022
Strategic Report
PRINCIPAL RISKS AND UNCERTAINTIES
The directors have carried out a robust assessment of the emerging and
principal risks facing the Company, including those that would threaten its
business model, future performance, solvency, liquidity or reputation. These
risks, and the actions taken to mitigate them, are set out below.
Risks are inherent in investment and corporate management. It is important to
identify risks and ways to control or avoid them. Witan Investment Services
Limited ('WIS') has a Risk Committee in order to monitor compliance with its
risk management and reporting obligations as Witan's Alternative Investment
Fund Manager ('AIFM'). The Company maintains a framework of the key risks,
with the policies and processes devised to monitor, manage and mitigate them
where possible. Its detailed risk map is reviewed regularly by the Audit &
Risk Committee and the WIS Risk Committee, which report on pertinent issues to
their respective Boards.
The guiding principles remain watchfulness, proper analysis, prudence and a
clear system of risk management.
Where appropriate, the Witan and WIS Boards meet jointly to cover matters of
common interest. The WIS Board consists of five non-executive directors and
one executive director who are also directors of Witan, and one executive
director who is a Company employee.
The Board's policy on risk management has not materially changed during the
course of the reporting period and up to the date of this report.
Page 14 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
The Company's key risks fall broadly under the following categories:
Market and investment portfolio (Increased)
Risk Mitigation
As an equity fund, a key risk of investing is a general fall in equity prices The Board seeks to manage these risks through:
and investment income, which could be exacerbated by gearing and the risks
associated with the performance of its investment managers and changes in · a broadly diversified equity benchmark;
Witan's share price rating.
· appropriate asset allocation decisions;
· selecting competent managers and regularly monitoring their
Other risks are the portfolio's exposure to country, currency, industrial performance, awareness of emerging risks and the robustness of their processes
sector and stock-specific factors (including those relating to the for taking account of those risks;
sustainability of the business model taking account of environmental, social
and governance factors). Political and macroeconomic topics such as Brexit, · paying attention to key economic and political events;
inflation, pandemics (e.g. Covid-19), trade wars and military conflicts (e.g.
the Russian invasion of Ukraine) can all be expected to lead to market · engagement with shareholders and other stakeholders
volatility.
· active management of risk, whether to preserve capital or capitalise on
opportunities;
· the application of relevant policies on gearing and liquidity; and
· share buybacks and issuance to respond to market supply and demand.
During the year, Andrew Bell, the CEO, managed the overall business and the
investment portfolio in accordance with limits determined by the Board and the
AIFM, on which the CEO reports at each Board meeting. The Board also regularly
reviews investment strategy and performance, supported by comprehensive
management information and analysis.
Operational and cyber (Increased)
Risk Mitigation
Many of the Company's financial systems are outsourced to third parties, The Witan and WIS Executive undertake a detailed due diligence programme,
principally BNP Paribas London Branch ('BNP Paribas'). Disruption to their focused upon the operational and cyber arrangements of all the Company's
accounting, payment systems or custody records could prevent the accurate suppliers. BNP Paribas, as the Company's depositary, has a key responsibility
reporting and monitoring of the Company's financial position. for monitoring such issues on behalf of the Company. The Board and AIFM
monitor the depositary as well as its other suppliers. Details of the Board's
monitoring and control processes are explained further in the Corporate
Governance Statement on pages 48 to 58 of the Annual Report.
Page 15 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
Compliance and regulatory change (Unchanged)
Risk Mitigation
The Company breaches compliance/regulatory requirements or fails to assess the The Board takes its regulatory responsibilities very seriously and compliance
impact. issues and potential regulatory changes are regularly reviewed by the Board
and its AIFM.
Details of the Company's corporate governance policies are set out in the
Corporate Governance Statement on pages 48 to 58 of the Annual Report. The
Board conducts an annual assessment of the effectiveness of its governance
processes.
There is also a three-yearly independent external review, the most recent of
which was in 2021. See page 57 of the Annual Report for further details.
Following the closure of the Company's savings plans, the risks associated
with the holding of and accounting for client assets has been substantially
reduced and will be eliminated in future.
Operational and regulatory risks are regularly reviewed by Witan's Audit &
Risk Committee and WIS's Risk Committee. WIS is subject to its own operating
rules and regulations and is regulated by the Financial Conduct Authority
('FCA'). The Company has established a modus operandi for the effective
coordination of its responsibilities and those of WIS, as its AIFM.
Operationally the multi-manager structure is robust, as the investment
managers, the custodian and the fund accountants keep their own records which
are regularly reconciled. The depositary, the AIFM and the Board provide
additional checks and safeguards. Management monitors the activities of all
third parties and reports any significant issues to the Board.
Page 16 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
Accounting, taxation and legal (Unchanged)
Risk Mitigation
The Company must comply with sections 1158-59 of the Corporation Tax Act 2010 The accounting requirements are monitored by the CEO and AIFM and the Company
('CTA'). A breach could result in the Company losing investment trust status carefully monitors compliance with the applicable rules.
and, as a consequence, capital gains realised would be subject to corporation
tax.
These requirements offer significant protection for shareholders. The Board
receives reports from the CEO, the AIFM, the Company Secretary and the
The Company must comply with the provisions of the Companies Act 2006 Company's professional advisers to enable it to ensure compliance with all
('Companies Act') and with the UK Listing Authority's Listing Rules and applicable rules. WIS is authorised and regulated by the FCA to act as the
Disclosure Rules ('UKLA Rules'). A breach of the Companies Act could result in AIFM for Witan.
the Company and/or the directors being fined or becoming the subject of
criminal proceedings. Breach of the UKLA Rules could result in the suspension
of the Company's shares which would itself constitute a breach of the
provisions of the CTA.
Liquidity (Unchanged)
Risk Mitigation
The Company's portfolio of securities might not be realisable. The Company's portfolio consists mainly of readily realisable securities. The
Company and its AIFM regularly review liquidity needs (for example,
operational costs, loan servicing and repayment, shareholder dividends and
share buybacks) relative to the Company's portfolio income and the value and
tradability of the Company's assets.
Most of the likely liquidity requirements are foreseeable (for example,
timetabled loan payments and dividends) while others (such as share buybacks)
are subject to the Company's discretion. The Board is satisfied that
unexpected liquidity needs are not significant and could readily be met
without compromising normal portfolio management.
Page 17 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
Environmental, social and governance factors (Unchanged)
Risk Mitigation
Failure to identify, understand or mitigate the risks arising from ESG issues Witan has a responsible investment policy which was developed by the Board in
may negatively impact investment returns, increase the potential for consultation with Witan's Executive team. This is discussed fully on pages 18
reputation risk to Witan and adversely affect the net asset value and/or price to 25 of the Annual Report. Witan expects its external managers to integrate
of Witan's shares. ESG factors into their investment processes. Witan requires managers to report
on any ESG issues in a timely manner and the Executive monitors the portfolios
using various third-party data providers to ensure that such issues are being
identified. Managers are also expected to report on engagement and voting
activities. The Executive holds regular ESG review meetings with each of the
managers where these activities, as well as evolving best practice and new
responsible investment initiatives, are discussed. The Executive presents its
findings to the Board on a regular basis.
CORPORATE AND OPERATIONAL STRUCTURE
Witan is an investment trust with a Premium Listing on the London Stock
Exchange. It has a single, wholly owned subsidiary, Witan Investment Services
Limited ('WIS') which acts as the Company's Alternative Investment Fund
Manager ('AIFM').
The overwhelming majority of the portfolio is in segregated accounts, held in
custody by the Company's depositary. The operations of the custodian and the
safeguarding of the Company's assets are supervised by the depositary.
OPERATIONAL MANAGEMENT ARRANGEMENTS
In addition to the appointment of third-party investment managers, Witan and
WIS contract with third parties for other services, including:
· BNP Paribas London Branch for depositary services, custody, investment
accounting and administration;
· Frostrow Capital LLP for company secretarial services;
· MSCI, StyleAnalytics and Morningstar/Sustainalytics for monitoring of its
investment holdings; and
· specialist advice on regulatory compliance issues and, as required, legal,
investment consulting, financial and tax advice.
The service quality and value received from major service providers are
reviewed regularly by the Board.
The contracts governing the provision of all services are formulated with
legal advice and stipulate clear objectives and guidelines for the service
required.
Page 18 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2022
Strategic Report continued
STAFFING
The Company's policy towards its employees is to attract and retain staff with
the skills and expertise required to manage the affairs of an investment trust
company. Details of the Company's remuneration policies and required
disclosures are set out in the Directors' Remuneration Report on pages 62 to
74 of the Annual Report. Employees and those who seek to work at Witan are
treated equally regardless of age, gender, race, disability, marital status,
sexual orientation and religion. The Company currently has six direct
employees, three men and three women. The Board currently consists of nine
non-executive directors (four men and five women) and the CEO, Andrew Bell,
who is an employee. Given its outsourced model and the small number of direct
employees, the Group has no employment-related specific policies in respect of
environmental or social and community affairs. However, as described
elsewhere, an increased focus on ESG issues has been formalised by the
Company's commitments, which are detailed in the section on responsible
investment on pages 18 to 25.
WITAN INVESTMENT SERVICES
WIS is authorised and regulated by the Financial Conduct Authority. It is
authorised to act as Witan's AIFM and to provide marketing services.
WIS's principal activities are acting as Witan's AIFM, providing executive
management services to the Board of Witan and communicating information about
the Company to the market.
WIS's operational objectives for 2022 were:
● to fulfil its responsibilities as Witan's AIFM; and
● to control the net operating costs for Witan.
In 2022, WIS's principal sources of income were the fees (as AIFM or Executive
Manager and for marketing services) paid by Witan Investment Trust plc. The
main costs incurred were staff costs and professional advice to ensure
compliance with regulatory and accounting obligations.
Page 19 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
COSTS
INVESTMENT MANAGEMENT FEES
Each of the third-party managers is entitled to a management fee, based on the
assets under management. The agreements can be terminated on one to three
months' notice. The base fee rates for managers in place at the end of 2022
ranged from 0.28% to 0.65% per annum. The weighted average base fee was 0.51%
as at 31 December 2022 (2021: 0.51%). One manager (covering 6% of Witan's
portfolio), has a performance-related fee, which has a high-water mark and is
subject to capping in any particular year.
Witan takes care to ensure the competitiveness of the fees it pays. We
negotiated a 15% reduction in fee for one of the incumbent managers during the
year and most of the fee structures incorporate a 'taper' whereby the average
fee rate reduces as the portfolio grows.
The Company's investment managers may use services which are paid for, or
provided by, various brokers. They may place business, including transactions
relating to the Company, with those brokers. Under the requirements of MiFID
II, broker-provided services (other than the execution of transactions) must
either be minor non-monetary benefits or, for research received by investment
managers and charged to the Company, separately accounted for.
ONGOING CHARGES AND COSTS
The Company's established measure of the costs of operation is the Ongoing
Charges Figure ('OCF'). This represents the recurring costs of operating the
business (principally the investment management fees paid to our external
managers as well as the Company's fixed and variable overhead costs), as a
percentage of net assets. This is calculated in accordance with the AIC's
guidelines and provides a consistent basis for the comparison of costs from
one year to the next and relative to other investment companies.
The OCF was 0.77% in 2022, (2021: 0.71%).). When performance fees due to
third-party managers are included, the OCF was also 0.77% in 2022 (2021:
0.73%).
The main cost headings within the OCF are set out on page 20. The figures for
transaction costs, borrowing costs and the pro rata ongoing charges of
underlying funds are also included in the table, for easy reference. In
calculating a KPI, the Board does not consider it relevant to consider the
ongoing charges of underlying investment companies in which the Company
invests, as the Company is not a fund of funds and to include ongoing charges
of some investee companies but not of others would not be appropriate. For
this reason, although the AIC's suggested approach is to include such charges
in the OCF, the Company has chosen not to do so as part of its KPIs, but has
disclosed below an estimate of this figure.
The Company exercises strict scrutiny and control over costs. The Board
believes that the OCF during the year represents good value for money for
shareholders, taking account of longer-term performance.
Page 20 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
The UK version of the EU PRIIPS regulations, which are applicable to UK
Investment Companies, mandates the preparation of a Key Information Document
('KID') calculated on a formulaic basis, which contains a different measure of
costs from the OCF, averaged over longer periods rather than specific to one
year. The other principal differences between the OCF and the KID measure are
the inclusion of transaction costs, borrowing costs, and the underlying costs
of holdings in other collective investments.
The Company's investment performance is reported after all costs, however
measured.
ANALYSIS OF COSTS
2022 2021
% of average 2021 % of average
2022
Category of cost £m net assets £m net assets
Investment management base fees (note 4, page 31) 7.67 0.45 9.33 0.47
Other expenses (excluding those expenses relating to the operation of the 5.38 0.32 4.77 0.24
subsidiary((1)), loan arrangement and one-off costs)
Ongoing Charges Figure 13.05 0.77 14.10 0.71
(including investment management base fees)
Investment management performance fees (note 4, page 31) - - 0.39 0.02
Ongoing Charges Figure 13.05 0.77 14.49 0.73
(including performance fees)
Pro rata ongoing charges of underlying funds((2)) 3.90 0.23 4.37 0.22
OCF plus look through fund costs 16.95 1.00 18.86 0.95
Portfolio transaction costs 1.84 0.11 3.95 0.20
Interest costs 6.29 0.37 5.21 0.26
Total costs including transaction costs, borrowing costs and underlying fund 25.08 1.48 28.02 1.41
costs
(1) those expenses not relating to the operation of the investment company
(2) this cost represents an estimate of the pro rata attributable fees charged
by the managers of the external
specialist collective funds held within the portfolio.
N.B. Figures may not sum due to rounding.
VIABILITY STATEMENT
In accordance with the UK Corporate Governance Code, the Board has assessed
the prospects of the Company over a longer period than the 12 months required
by the 'going concern' provision.
The Company's current position and prospects are set out in the Chairman's and
Chief Executive Officer's reports and the Strategic Report. The principal
risks are set out on pages 13 to 17.
Page 21 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
The Board has considered the Company's financial position and its ability to
liquidate its portfolio and meet its expenses as they fall due and notes the
following:
● The portfolio consists of investments traded on major
international stock exchanges and there
is a spread of investments. In normal conditions, the current
portfolio could be liquidated to the extent of more than 85% (source:
Bloomberg) within five trading days and there is no expectation that the
nature of the investments held will be materially different in future.
● The closed-ended nature of the Company means that, unlike an
open-ended fund, it does not need to realise investments when shareholders
wish to sell their shares.
● The Board has considered the viability of the Company under
various scenarios, including periods of acute stock market and economic
volatility such as experienced in 2020, and concluded that it would expect to
be able to ensure the financial stability of the Company through the benefits
of having a diversified portfolio of listed and realisable assets. As
illustrated in note 14 to the accounts in the Annual Report, the Board has
considered price sensitivity risk (the sensitivity of the profit after
taxation for the year and the value of the shareholders' funds to changes in
the fair value of the Group's investments) and foreign currency sensitivity
(the sensitivity to changes in key exchange rates to which the portfolio is
exposed).
● In addition to its cash balances, which were £35 million at 31
December 2022 (2021: £33 million), the Company has a short-term bank facility
(which is renewable annually) which can be used to meet its liabilities, and
fixed-rate financing in the form of secured notes and cumulative preference
shares. With the exception of the short-term facility, this financing will
remain in place until at least 2035. Details of the Company's current and
non-current liabilities are set out in note 13 to the accounts in the Annual
Report.
● The expenses of the Company are predictable and modest in
comparison with the assets and there are no capital commitments currently
foreseen which would alter that position.
As well as considering the principal risks on pages 13 to 17 and the financial
position of the Company, the Board has made the following assumptions in
considering the Company's longer-term viability:
● The Company's remit of investing in the securities of global
listed companies will continue to be an activity to which investors will wish
to have exposure.
● Investors will continue to want to invest in closed-ended
investment trusts.
● The performance of the Company will continue to be satisfactory.
The Board is able to replace any of the current investment managers when it
considers it appropriate to do so.
● The Company will continue to have access to adequate capital
when required.
● The Company will continue to be able to fund share buybacks when
required.
● The Company bought back 58 million ordinary shares in 2022 at a
cost of £129 million and experienced no problem with liquidity in doing so.
It had shareholders' funds in excess of £1.5 billion at the end of 2022.
Page 22 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
Based on the results of its review and taking into account the long-term
nature of the Company and its financing, the Board has a reasonable
expectation that the Company will be able to continue its operations and meet
its expenses and liabilities as they fall due for the foreseeable future,
taken to mean at least the next five years. The Board has chosen this period
after reviewing its investment policy and evaluating the investment cycle and
the ability to deliver the Company's objectives over the short to medium term.
Forecasting over longer periods is imprecise. The Board has no information to
suggest this judgement will need to change in the coming five years. The
Board's long-term view of viability will, of course, be updated each year in
the Annual Report.
GOING CONCERN
In light of the conclusions drawn in the foregoing statement on liquidity risk
on page 16 and the Viability Statement, the directors believe that the Company
has adequate financial resources to continue in operational existence for at
least the next 12 months from the date of this Report. Therefore, the
directors believe that it is appropriate to continue to adopt the going
concern basis in preparing the financial statements. In reviewing the position
as at the date of this report, the Board has considered the guidance on this
matter issued by the Financial Reporting Council.
APPROVAL
This report was approved by the Board of directors on 14 March 2023 and is
signed on its behalf by:
A J Ross A L C Bell
Chairman Chief Executive Officer
14 March 2023
Page 23 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Statement of Directors' Responsibilities
in respect of the Annual Report and the financial statements
Responsibility statement
The directors as at the date of the Annual Report confirm, to the best of
their knowledge, that:
· the financial statements, prepared in accordance with UK-adopted
International Accounting Standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole; and
· the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together with a
description (on pages 13 to 17) of the principal risks and uncertainties that
they face.
The directors also confirm that the financial statements, taken as a whole,
are fair, balanced and understandable, and provide the information necessary
for shareholders to assess the Company's position, performance, business model
and strategy.
By order of the Board
A J Ross
Chairman
A L C Bell
Chief Executive
14 March 2023
Page 24 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Financial Highlights as at 31 December 2022
Key data
2022 2021
Share price 221.5p 252.0p
NAV per ordinary share (debt at fair value)((3)) 234.1p 267.4p
Discount (NAV including income, debt at fair value)((3)) 5.4% 5.8%
Dividend per share 5.80p 5.60p
Total return performance
1 year % return 5 years % return 10 years % return
Share price total return((1)(3)) (9.8) 16.3 179.6
NAV total return((1)(3)) (10.3) 20.4 158.6
Witan benchmark((1)) (6.2) 38.1 157.8
MSCI UK IMI INDEX((2)) 1.6 13.9 83.4
MSCI ACWI INDEX((2) ) (7.6) 48.7 206.6
Percentage of total funds
North America 36%
Europe 21%
United Kingdom 20%
Other, including Investment Companies 12%
Asia ex Japan 4%
Japan 3%
Latin America 2%
Unquoted Funds 2%
Sector breakdown of the portfolio
Industrials 15.1%
Financials 11.6%
Information Technology 11.6%
Investment Companies 11.6%
Consumer Staples 11.4%
Healthcare 10.6%
Consumer Discretionary 6.9%
Materials 6.9%
Communication Services 6.6%
Energy 4.7%
Unquoted Funds 2.0%
Utilities 0.7%
Real Estate 0.3%
Company size breakdown of the portfolio
Large Cap 71.0%
Mid Cap 9.7%
Small Cap 5.7%
Unquoted Funds 2.0%
Investment Companies 11.6%
(1) Source: Morningstar. (2) Source:
Morningstar. See also MSCI for conditions of use (www.msci.com).
(3) Alternative performance measure: The
financial statements on pages 89 to 114 of the Annual Report set out the
required statutory reporting measures of the Company's financial performance.
In addition, the Board assesses the Company's performance against a range of
criteria which are viewed as particularly relevant for investment trusts,
which are summarised in the key performance indicators on pages 4 and 5 of the
Annual Report. Definitions of the terms used are set out and a reconciliation
of the NAV per ordinary share (debt at par value) to the NAV per ordinary
share (debt at fair value) are shown in note 18 on page 112 the Annual Report.
Page 25 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2022
Year ended Year ended
31 December 2022 31 December 2021
Revenue Capital Revenue Capital
return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment income (note 2) 43,605 - 43,605 37,443 - 37,443
Other income (note 3) 601 - 601 129 - 129
(Losses) /gains on investments held at fair value through profit or loss
- (303,607) (303,607) - 248,107 248,107
Foreign exchange gains/ (losses) on cash and cash equivalents
- 87 87 - (1,178) (1,178)
---------- ---------- ---------- ---------- ---------- ----------
Total income 44,206 (303,520) (259,314) 37,572 246,929 284,501
Expenses
Management and performance fees (note 4) (1,918) (5,754) (7,672) (2,331) (7,383) (9,714)
Other expenses (5,384) (101) (5,485) (4,815) (101) (4,916)
---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) before finance costs and taxation
36,904 (309,375) (272,471) 30,426 239,445 269,871
Finance costs (1,637) (4,657) (6,294) (1,366) (3,842) (5,208)
---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) before taxation 35,267 (314,032) (278,765) 29,060 235,603 264,663
Taxation (1,451) (338) (1,789) (1,432) (488) (1,920)
---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) attributable to equity shareholders of the parent company
33,816 (314,370) (280,554) 27,628 235,115 262,743
---------- ---------- ---------- ---------- ---------- ----------
Earnings per ordinary share (note 5)
4.78p (44.43)p (39.65)p 3.59p 30.53p 34.12p
====== ====== ====== ====== ====== ======
The total column of this statement represents the Group's Statement of
Comprehensive Income prepared in accordance with IFRSs.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies.
The Group does not have any other comprehensive income and hence the total
profit/(loss), as disclosed above, is the same as the Group's total
comprehensive income.
All items in the above statement derive from continuing operations.
All income is attributable to the equity holders of Witan Investment Trust
plc, the parent company. There are no non-controlling interests.
Page 26 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Consolidated and Individual Statements of Changes in Equity
for the year ended 31 December 2022
Group: Year ended 31 December 2022
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,379 48,895 1,992,041
Total comprehensive income:
(Loss)/profit for the year - - - (314,370) 33,816 (280,554)
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (40,409) (40,409)
Buybacks of ordinary shares (held in treasury)
- - - (129,269) - (129,269)
-------- --------- --------- ------------ --------- ------------
Total equity at 31 December 2022 50,018 99,251 46,498 1,303,740 42,302 1,541,809
Company: Year ended 31 December 2022
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,595 48,679 1,992,041
Total comprehensive income:
(Loss)/profit for the year - - - (314,295) 33,741 (280,554)
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (40,409) (40,409)
Buybacks of ordinary shares (held in treasury)
- - - (129,269) - (129,269)
-------- --------- --------- ------------ --------- ------------
Total equity at 31 December 2022 50,018 99,251 46,498 1,304,031 42,011 1,541,809
Group: Year ended 31 December 2021
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2020 50,018 99,251 46,498 1,665,775 63,666 1,925,208
Total comprehensive income:
Profit for the year - - - 235,115 27,628 262,743
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (42,399) (42,399)
Buybacks of ordinary shares (held in treasury)
- - - (153,511) - (153,511)
--------- --------- ------------ --------- ------------ ------------
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,379 48,895 1,992.041
Company: Year ended 31 December 2021
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2020 50,018 99,251 46,498 1,666,030 63,411 1,925,208
Total comprehensive income:
Profit for the year - - - 235,076 27,667 262,743
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (42,399) (42,399)
Buybacks of ordinary shares (held in treasury)
- - - (153,511) - (153,511)
-------- --------- --------- --------------- --------- ------------
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,595 48,679 1,992,041
Page 27 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Consolidated and Individual Balance Sheets
As at 31 December 2022
Group Company Group Company
31 December 31 December 31 December 31 December
2022 2022 2021 2021
£'000 £'000 £'000 £'000
Non current assets
Investments held at fair value through profit or loss
1,760,824 1,762,015 2,217,455 2,218,571
Right of use asset: property 196 196 249 249
-------------- -------------- -------------- --------------
Total non current assets 1,761,020 1,762,211 2,217,704 2,218,820
-------------- -------------- -------------- --------------
Current assets
Other receivables 4,661 4,885 5,840 5,782
Cash and cash equivalents 36,352 34,888 34,590 33,491
----------- ----------- ----------- -----------
Total current assets 41,013 39,773 40,430 39,273
----------- ----------- ----------- -----------
Total assets 1,802,033 1,801,984 2,258,134 2,258,093
--------------- --------------- --------------- ---------------
Current liabilities
Other payables (6,242) (6,193) (10,347) (10,306)
Bank loans (96,500) (96,500) (98,000) (98,000)
---------- ---------- ---------- ----------
Total current liabilities (102,742) (102,693) (108,347) (108,306)
---------- ---------- ---------- ----------
Total assets less current liabilities 1,699,291 1,699,291 2,149,787 2,149,787
Non current liabilities
Other payables (218) (218) (287) (287)
Deferred tax liability on Indian capital gains (667) (667) (886) (886)
Borrowings:
Secured debt (154,042) (154,042) (154,018) (154,018)
3.4 per cent. cumulative preference shares of £1 (2,055) (2,055) (2,055) (2,055)
2.7 per cent. cumulative preference shares of £1 (500) 500) (500) (500)
---------- ---------- ---------- ----------
Total non current liabilities (157,482) (157,482) (157,746) (157,746)
---------- ---------- ---------- ----------
Net assets 1,541,809 1,541,809 1,992,041 1,992,041
Equity attributable to equity holders
Ordinary share capital 50,018 50,018 50,018 50,018
Share premium account 99,251 99,251 99,251 99,251
Capital redemption reserve 46,498 46,498 46,498 46,498
Retained earnings:
Other capital reserves 1,303,740 1,304,031 1,747,379 1,747,595
Revenue reserve 42,302 42,011 48,895 48,679
---------- ---------- ---------- ----------
Total equity 1,541,809 1,541,809 1,992,041 1,992,041
Net asset value per ordinary share 226.80p 226.80p 269.93p 269.93p
The financial statements of Witan Investment Trust plc (registered number
101625) were approved by directors and authorised for issue on 14 March 2023
and were signed on their behalf by
A J S Ross A L C Bell
As permitted by section 408 of the Companies Act 2006, the Company has not
presented its own income statement. The loss of the Company dealt with in the
accounts of the Group amounted to £280,554,000 (2021: profit of
£262,743,000).
Page 28 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for
the year ended 31 December 2022
Consolidated and Individual Company Cash Flow Statements
for the year ended 31 December 2022
Group Company Group Company
2022 2022 2021 2021
£'000 £'000 £'000 £'000
Cash flows from operating activities
Dividend income received 42,739 42,739 37,986 37,986
Interest received 299 291 149 149
Other income received 646 216 361 141
Operating expenses paid (14,095) (14,022) (15,430) (15,316)
Taxation on overseas income (1,870) (1,870) (3,794) (3,794)
Taxation recovered 2,640 2,640 81 81
---------- ----------- ---------- -----------
Net cash inflow from operating activities
30,359 29,994 19,353 19,247
---------- ----------- ---------- -----------
Cash flows from investing activities
Purchases of investments (797,777) (797,777) (1,004,934) (1,004,934)
Sales of investments 948,911 948,911 1,194,779 1,194,779
Overseas capital gain on tax on sales (518) (518) - -
Settlement of futures contracts 1,001 1,001 - -
---------- ----------- ---------- -----------
Net cash inflow from investing activities
151,617 151,617 189,845 189,845
---------- ----------- ---------- -----------
Cash flow from financing activities
Equity dividends paid (note 7) (40,409) (40,409) (42,399) (42,399)
Buybacks of ordinary shares (132,281) (132,281) (150,942) (150,942)
Interest paid (6,044) (6,044) (5,167) (5,167)
Repayment of lease liability (67) (67) (67) (67)
Drawdown of bank loans 195,000 195,000 176,250 176,250
Repayment of bank loans (196,500) (196,500) (187,250) (187,250)
---------- ----------- ---------- -----------
Net cash outflow from financing activities
(180,301) (180,301) (209,575) (209,575)
---------- ----------- ---------- -----------
Increase/(decrease) in cash and cash equivalents
1,675 1,310 (377) (483)
Cash and cash equivalents at the start of the period
34,590 33,491 36,145 35,152
Effect of foreign exchange rate changes
87 87 (1,178) (1,178)
---------- ----------- ---------- -----------
Cash and cash equivalents at the end of the period
36,352 34,888 34,590 33,491
Page 29 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Notes to the Financial Statements
for the year ended 31 December 2022
1. Accounting policies
The financial statements of the Group and parent company have been prepared in
accordance with UK-adopted International Accounting Standards ('IASs'). These
financial statements are presented in pounds sterling because that is the
currency of the primary economic environment in which the Group operates.
(a) Basis of preparation
The financial statements have been prepared on the historical cost basis,
except for the revaluation of certain financial instruments. The principal
accounting policies adopted are set out in the financial statements. Where
presentational guidance set out in the Statement of Recommended Practice
'Financial Statements of Investment Trust Companies and Venture Capital
Trusts' (the 'SORP') issued by the Association of Investment Companies (the
'AIC') in July 2022 is consistent with the requirements of IASs, the directors
have sought to prepare the financial statements on a basis compliant with the
recommendations of the SORP.
Judgements and sources of estimation uncertainty
In the application of the Group's accounting policies, management is required
to make judgements, estimates and assumptions about carrying values of assets
and liabilities that are not always readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may vary from
these estimates.
The directors do not consider that there are any significant estimates or
critical judgements in these financial statements.
(b) Going concern
The financial statements have been prepared on a going concern basis. The
Group's business activities, together with the factors likely to affect its
future development and performance, are set out in the Strategic Report in the
Annual Report. The financial position of the Group as at 31 December 2022 is
shown in the balance sheet on page 27. The cash flows of the Group for the
year ended 31 December 2022 are not untypical and are set out on page 28.
(c) Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and the entity controlled by the Company (its subsidiary) made up
to 31 December each year.
In accordance with IFRS 10 the Company has been designated as an investment
entity on the basis that:
· It obtains funds from investors and provides those investors
with investment management services;
· It commits to its investors that its business purpose is to
invest solely for returns from capital appreciation and
investment income; and
· It measures and evaluates performance of substantially all of
its investments on a fair value basis.
The subsidiary of the Company was established for the sole purpose of
operating or supporting the investment operations of the Company and is not
itself an investment entity. Therefore, under the principles of IFRS 10, the
Company has consolidated its subsidiary as it is a controlled entity that
supports the investment activity of the investment entity.
Control is achieved where the Company is exposed, or has the right, to
variable returns from its investment in the subsidiary and has the ability to
affect those returns through its power to direct the relevant activities.
Where necessary, adjustments are made to the financial statements of the
subsidiary to bring the accounting policies used by it into line with those
used by the Group. All intra-group transactions, balances, income and expenses
are eliminated on consolidation.
Page 30 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Notes to the Financial Statements continued
(d) Presentation of the 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 Statement of Comprehensive Income between items of a revenue and
capital nature has been presented alongside the Statement of Comprehensive
Income. Additionally, the net revenue is the measure the directors believe
appropriate in assessing the Group's compliance with certain requirements set
out in section 1158 of the Corporation Tax Act 2010.
2. Investment income
2022 2021
£'000 £'000
UK dividends from listed investments 11,869 11,693
UK special dividends from listed investments 1,589 455
UK stock dividends from listed investments 772 170
----------- -----------
Total UK dividends 14,230 12,318
----------- -----------
Overseas dividends from listed investments 28,522 24,502
Overseas special dividends from listed investments 832 623
Fixed interest 21 -
----------- -----------
Total investment income 43,605 37,443
2022 2021
£'000 £'000
Analysis of investment income by geographical segment:
United Kingdom 14,251 12,318
North America 5,009 4,407
Continental Europe 5,906 5,614
Japan 1,517 1,450
Asia (ex Japan) 2,156 2,709
Latin America 5,735 2,147
Other 9,031 8,798
----------- -----------
Total investment income 43,605 37,443
3. Other income
2022 2021
£'000 £'000
Deposit interest 379 3
Stock lending income 222 126
----------- -----------
601 129
At 31 December 2022 the total value of securities on loan by the Company for
stock lending purposes was £35,830,000 (2021: £57,111,000). The maximum
aggregate value of securities on loan at any time during the year ended 31
December 2022 was £122,950,000 (2021: £188,480,000). Collateral, revalued on
a daily basis at a level equivalent to at least 105% (2021: 105%) of the
market value of the securities lent, was provided against all loans.
Page 31 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Notes to the Financial Statements continued
4. Management and performance fees
Year ended 31 December 2022 Year ended 31 December 2021
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Management fees paid to third-party managers 1,918 5,754 7,672 2,331 6,994 9,325
Performance fee payable to third-party managers - - - - 389 389
---------- ----------- ----------- ---------- ----------- -----------
Total management and performance fees
1,918 5,754 7,672 2,331 7,383 9,714
5. Earnings per ordinary share
The earnings per ordinary share figure is based on the net loss for the year
of £280,554,000 (2021: profit of £262,743,000) and on 707,617,951 ordinary
shares (2021: 770,137,797), being the weighted average number of ordinary
shares in issue during the year.
The earnings per ordinary share figure detailed above can be further analysed
between revenue and capital, as below. The Company has no securities in issue
that could dilute the return per ordinary share. Therefore the basic and
diluted earnings per ordinary share are the same.
2022 2021
£'000 £'000
Net revenue profit 33,816 27,628
Net capital (loss)/ profit (314,370) 235,115
Net total(loss)/ profit (280,554) 262,743
Weighted average number of ordinary shares in issue during the year 707,617,951 770,137,797
Pence Pence
Revenue earnings per ordinary share 4.78 3.59
Capital(loss)/ earnings per ordinary share (44.43) 30.53
Total (loss) /earnings per ordinary share (39.65) 34.12
6. Issued share capital
The number of ordinary shares of 5p each in issue at 31 December 2022 was
1,000,355,000 (2021: 1,000,355,000), of which 320,531,829 ordinary shares of
5p each (2021: 262,379,133) were held in treasury.
Page 32 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Notes to the Financial Statements continued
7. Dividends
2022 2021
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Fourth interim dividend for the year ended 31 December 2021 of 1.52p (2020:
1.43p) per ordinary share
11,107 11,294
First interim dividend for the year ended 31 December 2022 of 1.40p
(2021: 1.36p) per ordinary share 10,003 10,563
Second interim dividend for the year ended 31 December 2022 of 1.40p (2021:
1.36p) per ordinary share
9,779 10,385
Third interim dividend for the year ended 31 December 2022 of 1.40p (2021:
1.36p) per ordinary share
9,584 10,157
Refund of unclaimed dividends (64) -
---------- ----------
40,409 42,399
====== ======
Fourth interim dividend for the year ended 31 December 2022 1.60p (2021:
1.52p) per ordinary share
10,746 11,107
====== ======
Total in respect of the year:
Set out below is the total dividend to be paid in respect of the year. This
is the basis on which the minimum distribution requirements of section 1158 of
the Corporation Tax Act 2010 are considered.
2022 2021
£'000 £'000
Revenue profits available for distribution (Company only) 33,741 27,667
First interim dividend for the year ended 31 December 2022 of 1.40p
(2021: 1.36p) per ordinary share (10,003) (10,563)
Second interim dividend for the year ended 31 December 2022 of 1.40p (2021:
1.36p) per ordinary share
(9,779) (10,385)
Third interim dividend for the year ended 31 December 2022 of 1.40p (2021:
1.36p) per ordinary share
(9,584) (10,157)
Fourth interim dividend for the year ended 31 December 2022 of 1.60p (2021:
1.52p) per ordinary share
(10,746) (11,107)
---------- ----------
Revenue reserves utilised in the year (Company only) (6,371) (14,545)
====== ======
8. 2022 Accounts
The figures and financial information for 2022 are extracted from the Annual
Report and financial statements for the year ended 31 December 2022 and do not
constitute the statutory accounts for the year. The Annual Report and
financial statements include the Report of the Independent Auditor which is
unqualified and does not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006. The Annual Report and financial
statements have not yet been delivered to the Registrar of Companies.
Page 33 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Notes to the Financial Statements continued
9. 2021 Accounts
The figures and financial information for 2021 are extracted from the
published Annual Report and financial statements for the year ended 31
December 2021 and do not constitute the statutory accounts for that year. The
Annual Report and financial statements have been delivered to the Registrar of
Companies and included the Report of the Independent Auditor which was
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006.
10. Annual report and financial statements
A copy of the Annual Report and financial statements to 31 December 2022 will
shortly be available for inspection at the National Storage Mechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) ) and on the
Company's website, www.witan.com (http://www.witan.com)
Copies of the Annual Report and financial statements will be posted to
shareholders by the end of March 2023 and will be available on the Company's
website (www.witan.com) or in hard copy format from the Registered Office,
14 Queen Anne's Gate, London, SW1H 9AA.
The Annual General Meeting will be held on Thursday 4 May 2023 at the Merchant
Taylors' Hall, 30 Threadneedle Street, London EC2R 8JB. For further details
regarding arrangements, see the Notice of AGM which will be published by the
end of March 2023.
For further information please contact:
Andrew Bell
Chief Executive
Witan Investment Trust plc
Telephone: 020 7227 9770
Isabella Seekings
Director of Marketing
Witan Investment Trust plc
Telephone: 020 7227 9770
- ENDS -
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incorporated into, or forms part of, this announcement.
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