Blue Planet Investment Trust plc
Half Yearly Report and Accounts
For the six months ended 31 October
2015
Officers and
Advisors |
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Directors |
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Investment Manager, Administrator and Secretary |
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John Tyce
(Non-Executive Chairman) |
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Blue
Planet Investment Management Ltd |
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Victoria Killay
(Non-Executive) |
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18a Locker
Street |
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Kenneth Murray
(Non-Executive) |
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Sliema |
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SLM 3124,
Malta |
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Telephone
No: +356 2131 4309 |
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Facsimile
No: +356 2131 5219 |
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Local call
rate from UK 0845 527 7588, plus a Service Charge of 5p per
call |
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E-mail:
info@blueplanet.eu |
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www.blueplanet.eu |
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Registered
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Registrars |
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Greenside House |
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Capita
Asset Services Ltd |
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25 Greenside
Place |
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The
Registry |
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Edinburgh EH1 3AA |
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34
Beckenham Road |
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Telephone No: +44 131
466 6666 |
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Beckenham |
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Facsimile No: +44 131
466 6677 |
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Kent BR3
4TU |
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E-mail:
info@blueplanet.eu |
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Shareholder Helpline No: 0871 664 0300 (calls cost 10p |
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www.blueplanet.eu |
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per minute
plus network extras, lines are open 8.30am-5.30pm (Mon-Fri)) |
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Overseas:
+44 208 639 3399 |
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E-mail:
ssd@capitaregistrars.com |
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www.capitaassetservices.com |
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Chartered
Accountants & Statutory Auditors |
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Bankers |
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Deloitte LLP |
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Lloyds
Banking Group |
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Saltire Court |
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1st Floor |
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20 Castle Terrace |
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48
Chiswell Street |
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Edinburgh EH1 2DB |
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London
EC1Y 4XX |
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Custodians |
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Custodians |
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KAS Bank N.V. |
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Interactive Brokers Group Incorporated |
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Westferry House, 11
Westferry Circus |
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5th Floor,
One Carey Lane |
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London E14 4HD |
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London
EC2V 8AE |
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Registered
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SC192153 |
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Blue Planet Investment Trust plc is a member of the Association
of Investment Companies.
Investment Policy and Objectives
The Company’s objective is to provide investors with a
combination of capital growth and income. In order to achieve
this it invests in securities (including equities, exchange traded
funds, equity-related securities, bonds and derivatives) issued by
companies, Governments and other types of issuers located
throughout the world.
The Company has not set maximum exposures for any type of
issuer, geographical regions or sectors. How the Company’s
investments are allocated will depend on market conditions and the
judgement of the Board as to what is in the best interests of
Shareholders. This is to provide it with the flexibility that
is necessary to deal with an ever changing economic
environment. It would, however, normally be expected that
most of the Company’s investments will be in equities, exchange
traded funds, equity-related securities, preference shares, bonds
and derivatives. However, the Company is not prohibited from
investing in other types of securities. No more than 15 per
cent of the Company’s portfolio may be invested in any one
investment at the time the investment is made. There is no
restriction on the amount that may be invested in any one
country.
The Company may use derivatives (including, but not limited to,
contracts for differences, futures and options), principally, but
not exclusively, for efficient portfolio management, that is to
reduce, transfer or eliminate investment risk in its investments,
including protection against currency risks.
The Company’s Articles permit borrowing up to an amount not
exceeding 75% of Shareholders’ funds. The Board may utilise
borrowing up to this limit from time to time to enhance income and
capital returns over the long term and may borrow in Sterling and
other currencies.
Financial
Record |
Six
months ended 31
October 2015
(unaudited) |
Six
months ended 31
October 2014
(unaudited) |
Year
ended 30
April 2015
(audited) |
Shareholders’ funds (£’000) |
23,640 |
24,860 |
28,436 |
Net asset value per share (p) |
47.78 |
50.25 |
57.47 |
Share price (p) (Bid) |
34.00 |
34.00 |
39.75 |
Discount (%) |
28.84 |
32.34 |
30.84 |
Gearing (%)* |
50.54 |
46.59 |
42.95 |
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Return available for shareholders
(£’000) |
961 |
529 |
1,469 |
Capital return in the period
(£’000) |
(4,361) |
(1,899) |
737 |
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Revenue return per share (p) |
1.94 |
1.07 |
2.97 |
Total return per share (p) |
(6.87) |
(2.77) |
4.46 |
Dividend per share (p) |
- |
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2.82 |
Dividend yield on our shares
(%) |
N/A |
N/A |
7.09 |
Ongoing Charges (%) ** |
3.72 |
3.81 |
3.77 |
* Net debt as a percentage of shareholders’ funds
** Ongoing charges figure has been prepared in accordance with
the AIC’s recommended methodology.
The Investment Manager
Under the recently introduced Alternative Investment Fund
Management Directive legislation the Trust has elected to be its
own AIF manager but has delegated the day to day management of the
investment portfolio and administration to Blue Planet Investment
Management Ltd which is a Malta
based investment management company. It is an independent
firm that specialises in advising and managing investment and
family trusts. It has a great deal of expertise in managing
investments on a worldwide basis. It is regulated by the
Malta Financial Services Authority.
Blue Planet Investment Management Ltd is the investment manager
of the Company and receives an annual fee of 1.50% per annum of the
total assets of the company which is paid monthly. Blue Planet
Investment Management Ltd also receives £196,000 per annum in
respect of administration and secretarial services. The
investment management, administration and secretarial services
agreements may only be terminated on receipt of two years
notice.
Website Information
Please take the time to visit our website:
www.blueplanet.eu
Subscribe to our monthly fact sheet service:
http://www.blueplanet.eu/blueplanet_downloads.136.html
To download historical Annual and Interim reports and past
monthly fund fact sheets:
http://www.blueplanet.eu/blueplanet_downloads.124.html
To view stock market RNS announcements:
http://www.blueplanet.eu/blueplanet_news.8.html
Retail Distribution of Investment
Company Shares
Blue Planet Investment Trust plc currently conducts its affairs
so that the shares issued by the Company can be recommended by
Independent Financial Advisers to ordinary retail investors in
accordance with the Financial Conduct Authority’s rules in relation
to non-mainstream investment products and intends to continue to do
so for the foreseeable future.
The shares are excluded from the Financial Conduct Authority’s
restrictions which apply to non-mainstream investment products
because they are shares in an investment trust.
Interim Management Report – Portfolio
Information
As at 31 October 2015 |
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Country |
Valuation
(£) |
% of
Portfolio |
Ordinary
Shares |
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Arista Networks Incorporated |
United States |
1,538,999 |
4.5 |
General Motors Co |
United States |
1,515,844 |
4.5 |
Melrose Industries plc |
United Kingdom |
1,317,195 |
3.9 |
Infinera Corp. |
United States |
1,280,057 |
3.8 |
Beazley plc |
United Kingdom |
1,090,800 |
3.2 |
ETRACS 2x Leveraged Long Wells Fargo
Business Development Company Index ETN |
United States |
1,084,068 |
3.2 |
Mobileye NV |
United States |
1,001,335 |
2.9 |
Synchronoss Technologies Inc. |
United States |
957,379 |
2.8 |
American Airlines Inc. |
United States |
947,920 |
2.8 |
Lancashire Holdings Limited |
United Kingdom |
947,344 |
2.8 |
Aegean Airlines SA |
Greece |
934,207 |
2.7 |
Engie SA |
France |
848,186 |
2.5 |
Barclays plc |
United Kingdom |
840,420 |
2.5 |
Och-Ziff Capital Management Group
LLC |
United States |
799,462 |
2.3 |
Bank of America Corporation |
United States |
728,667 |
2.1 |
Allianz SE |
Germany |
679,221 |
2.0 |
SSE plc |
United Kingdom |
666,160 |
1.9 |
Baidu Inc. |
China |
643,976 |
1.9 |
National Grid plc |
United Kingdom |
619,616 |
1.8 |
Enagas SA |
Spain |
609,209 |
1.8 |
Rio Tinto plc |
United Kingdom |
601,418 |
1.8 |
Delta Lloyd NV |
Netherlands |
599,230 |
1.8 |
Direct Line Insurance Group |
United Kingdom |
532,170 |
1.6 |
AXA SA |
France |
520,116 |
1.5 |
Bank Of Ireland |
Eire |
479,349 |
1.4 |
KCAP Financial Incorporated |
United States |
285,847 |
0.8 |
Ausdrill Limited |
Australia |
172,628 |
0.5 |
Gfinity plc |
United Kingdom |
60,000 |
0.2 |
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22,300,823 |
65.5 |
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Preference Shares |
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Lloyds Banking Group 9.25% |
United Kingdom |
1,086,410 |
3.2 |
NatWest Bank 9% |
United Kingdom |
667,500 |
2.0 |
Santander UK plc 10.375% |
United Kingdom |
416,770 |
1.2 |
Standard Chartered 8.25% |
United Kingdom |
360,000 |
1.1 |
Santander UK plc 8.625% |
United Kingdom |
246,000 |
0.7 |
RSA Insurance 7.375% Cumulative
Preference Share |
United Kingdom |
58,000 |
0.2 |
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2,834,680 |
8.4 |
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Debt Securities |
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Federal Republic of
Brazil 10% 01/01/2025 |
Brazil |
2,371,342 |
7.0 |
Lloyds Bank plc 7.625% 22/04/25 |
United Kingdom |
777,759 |
2.3 |
Aviva plc 6.875% 20/05/58 |
United Kingdom |
768,712 |
2.3 |
Gulf Keystone Petroleum Ltd 13%
18/04/17 |
Bermuda |
700,214 |
2.1 |
Bank of Ireland 13.375%
Perpetual |
Eire |
678,680 |
2.0 |
Baggot Securities 10.24%
Perpetual |
Eire |
677,760 |
2.0 |
BNP Paribas 4.875% 29/10/49 |
France |
599,860 |
1.8 |
Phoenix Group 6.625% 18/12/25 |
United Kingdom |
576,880 |
1.7 |
Santander UK 10.0625% 29/10/49 |
United Kingdom |
490,088 |
1.4 |
Petrobras 6.85% 05/06/2115 |
Brazil |
346,296 |
1.0 |
Friends Life Group 12% 21/05/21 |
United Kingdom |
319,504 |
0.9 |
Petrobras 6.25% 14/12/26 |
Brazil |
318,313 |
0.9 |
Sea Trucks Group 9% 26/03/18 |
Nigeria |
210,642 |
0.6 |
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8,836,050 |
26.0 |
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Listed Investments |
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33,971,553 |
99.9 |
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Cash |
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17,623 |
0.1 |
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Total |
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33,989,176 |
100.0 |
Interim Management Report
(continued)
Performance
In the six months to 31st October
2015 we generated a NAV total return of -12.0%, this is
after account has been taken of the dividend of 2.82p per share
that was paid to shareholders on the 28th
August 2015. Over the same period the FTSE 100 generated a
total return of -6.9%. Our share price total return over the period
was -7.4%.
The period under review was marred by persistent uncertainties
that led to near continuous market weakness. First there were the
UK elections with the inherent threat of a Labour Government and a
return to catastrophic economic mismanagement. Thankfully that risk
was averted when a Conservative Government was elected. Its
commitment to sound economic management, albeit with much smaller
cuts to public spending than we believe are necessary to ensure a
really successful, dynamic and vibrant economy, was a relief and
markets responded positively to it.
However, this was soon overshadowed by fears about Syriza in
Greece, another incompetent, left
wing party, and its threats to default on the Greek Government’s
debt. Fears that were in our view absurd given the tiny size and
inconsequential nature of the Greek economy. Nevertheless, this led
to months of uncertainty until finally the beleaguered Greek
Government reached agreement with its creditors on the terms of a
third bailout, this time for EUR 86
billion. Had this not happened the Greek economy would
have certainly collapsed and its access to finance would have been
cut off with devastating consequences for the Greek people. They,
like so many others, are paying a very high price for allowing
economies to be run by politicians who are grossly incompetent and
who have little or no understanding of economics. If MP’s were
appointed on merit rather than on the back of false promises and
misrepresentations, these problems could be avoided and we would
all be better off.
Good second quarter earnings ought to have boosted the market
but they were not enough to overcome the bearish mood that had set
in and the sell-off accelerated in August with European indices
suffering their worst monthly decline in 4 years. The US fared even
worse with the Dow Jones Index posting its worst August performance
in 17 years.
Keen to find reasons to justify this sell-off, the media cited
concerns about emerging markets, slowing economic growth in
China, falling commodity prices
and the prospect of a rise in US interest rates. Emerging Markets,
such as Brazil and Russia, which have large US dollar borrowings
and whose export earnings have declined as a result of falling
commodity prices, were particularly hard hit.
While investors are right to be concerned about these factors, we
feel that the sell-off was overdone and indiscriminate. US monetary
policy will only be tightened in the event that the US economy is
fundamentally strong and getting stronger. That would be bullish,
not bearish; so it is as absurd to worry about that as it was to
worry about Greece. In addition,
while falling commodity prices and rising US interest rates will
harm some economies, it will also benefit others, notably those
that are net consumers of raw materials such as the UK,
Europe, US, Japan, China
and creditor nations. That being the case, rational investors
should have been disinvesting in those economies/companies that
stand to suffer from these changes and buying into those that will
benefit from them, but instead everything was sold. That suggests
to us that the sell-off was primarily driven by sentiment rather
than any rational consideration of the facts. In other words, it
was a typical late, bull market bout of nerves. The facts, however,
suggest that this bull run has further to go. Critically, corporate
earnings are growing and are likely to continue to do so even after
US rates are tightened. The US economy, which is the largest in the
World, is doing very well with Q2 GDP growth being revised up from
2.3% to 3.7% and jobless claims dropping to the lowest levels seen
in many years. The European economy is also strengthening, with
Euro area unemployment recently marking a four year low of 10.8%
whilst the manufacturing and services sectors continue to improve
and are consistent with GDP growth of nearly 2%.
Income and Dividends
Although stock markets have been weak over the past six months,
our income from investments has continued to grow strongly. In the
six months to 31st October
2015 income rose by 40.5% to £1,389,304 (October 2014 - £988,978). Your Board is committed
to paying as high a dividend as is prudent and, subject to no
unforeseen eventualities, we expect the dividend for the year to
30th April 2016 to match
or improve on the 2.82p per share we paid last year. It must,
however, be stressed that these are projections made in good faith
with the purpose of informing shareholders and they should not be
relied upon. The actual outcomes may be worse or better than
this.
Outlook
We expect markets to settle down and push higher as the year
advances, and we look forward to an improved NAV performance in the
second half of our financial year. We expect US interest rates to
rise either later this year or early next year, and have been
re-allocating our capital and amending our currency hedging policy
to take advantage of this. In particular, we have been investing in
bank shares. This is because increasing interest rates will boost
their profitability, and with their capital ratios now at very high
levels, they will be able to substantially increase their dividend
payments in the coming years. We have also reduced our USD
hedges in anticipation of a stronger dollar. We have also been
allocating capital to undervalued assets such as Brazilian
Government Debt. In terms of nominal GDP, Brazil is the 9th largest economy in the
world, similar to Italy. On 13th
October of this year we commenced investing in Federal Republic of
Brazil 10% 01/01/2025 bonds. At the time the exchange
rate was 6.06 BRL to 1 GBP and the
yield to maturity on the bond was 15.82%. We did so because
we believed that the Brazilian Real was oversold against the GBP
and that the yields to maturity on Brazilian Government debt were
excessive given the credit risk and were therefore likely to fall.
Since then the Brazilian Real has strengthened to
5.63 BRL to 1 GBP and the yield to
maturity has fallen to 15.20%, giving rise to an 8.5% capital gain
for us in a little over a month. We expect much more from this
investment in the future. To fund these investments we have been
taking profits on some of our technology investments.
We also continue to monitor and analyse the Oil and Mining sectors
so that when those markets do bottom we are in a position to
allocate capital to those investments we judge to be the best for
us in the sector. We are also looking at Government debt in
countries that have been badly managed but where, as a result of
political change, there is the prospect of improved economic
management and a re-rating of the country's debt. In addition, we
continue to look for good investments in the technology and
biotechnology sectors. We are excited by what we see and look
forward to the future with confidence.
Gearing and Capital Allocation
At the end of the six month period to 31st
October 2015 the Trust had gearing,
net of cash, equal to 50.5% of NAV and its portfolio was allocated
as follows: 65.5% was invested in ordinary shares; 26.0% in
bonds; 8.4% preference shares and 0.1% in cash. Figure 1
shows the movement in the allocation of our capital across those
four different asset classes, ordinary shares, bonds, preference
shares and cash, since our year end 30th April 2015.
Figure
1:
Portfolio movements – by asset class
Security Type |
Oct-15 |
Apr-15 |
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Ordinary Shares |
65.5% |
75.9% |
Bonds |
26.0% |
16.4% |
Preference Shares |
8.4% |
7.7% |
Cash |
0.1% |
0.0% |
Total |
100.0% |
100.0% |
Figure
2:
Portfolio movements – by geography
Country Name |
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Oct-15 |
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Apr-15 |
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United Kingdom |
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36.6% |
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36.0% |
United States |
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29.9% |
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29.0% |
Brazil |
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8.9% |
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0.0% |
France |
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5.8% |
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13.5% |
Eire |
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5.4% |
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6.6% |
Greece |
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2.7% |
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1.6% |
Bermuda |
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2.1% |
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2.2% |
Germany |
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2.0% |
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1.7% |
China |
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1.9% |
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4.6% |
Spain |
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1.8% |
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0.0% |
Netherlands |
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1.8% |
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2.5% |
Nigeria |
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0.6% |
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0.6% |
Australia |
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0.5% |
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0.6% |
Argentina |
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0.0% |
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1.1% |
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100.0% |
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100.0% |
Dividend
In accordance with established policy no interim dividend has
been declared for the first half of the year.
Risk
Your Company is, and will continue to be, exposed to a number of
risks which are detailed in full in the Strategic Report on page 6
of the Annual Report and have not changed up to the date of this
report. The key market risk arises from the uncertainty regarding
the future price performance of the securities held by your
Company. If gearing is employed this risk is magnified.
The prices of the individual securities in the portfolio are
monitored on a daily basis and the Board, which meets quarterly,
imposes borrowing limits to ensure gearing levels are appropriate
to market conditions. When gearing is employed the potential impact
of changes in interest rates is taken into consideration. The
securities dealt in are all listed on recognised exchanges and are
readily realisable.
The Fund is exposed to currency risk, due to the range of
currencies in which investments are held. A substantial proportion
of the Company’s assets are held in assets denominated in foreign
currencies and movements in these currencies can significantly
affect the Sterling value of the Company’s foreign denominated
income and assets. The fund manager tracks currency movements on a
regular basis and hedging is considered on a case-by-case
basis.
Where investments are made in emerging markets there is a risk
of higher volatility in the price performance of these equities and
their associated currencies. Political risk and adverse economic
circumstances are more likely to arise, putting the value of the
investment at a higher risk. The registration and settlement
arrangements in emerging markets may be less developed than in more
mature markets so operational risks of investing are higher.
Going Concern
The Company’s business activities, together with the risk
factors likely to affect its future position are set out in this
report. The Directors consider that the Company has adequate
financial resources in the form of readily realizable listed
securities, including cash and credit facilities to continue in
operational existence for the foreseeable future. For this
reason, they continue to use the going concern basis in preparing
the accounts
Borrowings, Gearing and Liquidity
The Fund ended the period with gearing net of cash of 50.5%. The
Company financed its gearing by means of credit facilities with KAS
Bank N.V. and Interactive Brokers Group.
Generally, gearing beneficially affects the Company’s NAV when
the value of its investments is rising, but adversely affects it
when the value of investments is falling.
Blue Planet Services and Price
Information Sources
Shareholders can view the Company’s share price and additional
information about the Fund on the website of Blue Planet Investment
Management Ltd (www.blueplanet.eu) and the London Stock Exchange
(www.londonstockexchange.com). To find the Company’s share price on
the London Stock Exchange website go to the Home page and type
“BLP” in the “Price Search” field.
I would like to thank all shareholders for your continuing
support.
John Tyce
Chairman
25 November 2015
Balance Sheet
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At 31
October
2015
£
(unaudited) |
At 31
October
2014
£
(unaudited) |
At 30
April
2015
£
(audited) |
Fixed assets |
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Listed
equity investments |
25,135,503 |
32,816,023 |
33,678,872 |
Listed
non - equity investments |
8,836,050 |
4,552,066 |
6,630,707 |
|
33,971,553 |
37,368,089 |
40,309,579 |
Current assets |
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Debtors |
1,714,265 |
182,672 |
634,686 |
Cash at bank and in
hand |
17,623 |
294,911 |
2,018 |
Creditors: amounts falling due within one year (note 7) |
(12,063,235) |
(12,985,341) |
(12,510,887) |
Net current liabilities |
(10,331,347) |
(12,507,758) |
(11,874,183) |
Net assets |
23,640,206 |
24,860,331 |
28,435,396 |
Capital and reserves |
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Called-up share capital |
497,820 |
497,820 |
497,820 |
Share premium account |
18,426,406 |
18,426,406 |
18,426,406 |
Other reserves |
|
|
|
Capital reserve – realised |
(2,681,701) |
(6,075,676) |
(4,526,388) |
Capital reserve – investment holding gains |
(1,896,522) |
3,223,225 |
4,309,452 |
Capital redemption reserve |
8,167,389 |
8,167,389 |
8,167,389 |
Revenue reserve |
1,126,814 |
621,167 |
1,560,717 |
Shareholders’ funds |
23,640,206 |
24,860,331 |
28,435,396 |
Net asset value per ordinary share (note 4) |
47.78p |
50.25p |
57.47p |
Statement of Directors’ responsibilities
The Directors confirm that this set of condensed financial
statements has been prepared in accordance with FRS 104 “Interim
Financial Reporting” and that the interim management report herein
includes a fair review of the information required by DTR 4.2.7R
and DTR 4.2.8R.
On behalf of the Board
John Tyce
Chairman
25 November 2015
Income Statement
|
For the six months ended 31 October 2015
(unaudited) |
For the six months ended 31 October 2014
(unaudited) |
For the year ended 30 April 2015
(audited) |
|
Revenue
£ |
Capital
£ |
Total
£ |
Revenue
£ |
Capital
£ |
Total
£ |
Revenue
£ |
Capital
£ |
Total
£ |
Capital (losses) /
gains on investment |
|
|
|
|
|
|
|
|
|
Net realised
gains |
- |
2,387,759 |
2,387,759 |
- |
1,093,414 |
1,093,414 |
- |
2,304,360 |
2,304,360 |
Unrealised losses |
- |
(6,534,638) |
(6,534,638) |
- |
(3,190,247) |
(3,190,247) |
- |
(1,916,065) |
(1,916,065) |
Exchange (losses) /
gains |
- |
(44,308) |
(44,308) |
- |
391,711 |
391,711 |
- |
728,558 |
728,558 |
Net capital
(losses) / gains on investment |
- |
(4,191,187) |
(4,191,187) |
- |
(1,705,122) |
(1,705,122) |
- |
1,116,853 |
1,116,853 |
Income from
investments |
1,389,304 |
- |
1,389,304 |
988,978 |
- |
988,978 |
2,252,202 |
- |
2,257,202 |
Bank interest
receivable |
111 |
- |
111 |
14,588 |
- |
14,588 |
16,139 |
- |
16,139 |
Gross revenue and
capital (losses) / gains |
1,389,415 |
(4,191,187) |
(2,801,772) |
1,003,566 |
(1,705,122) |
(701,566) |
2,273,341 |
1,116,853 |
3,390,194 |
Administrative
expenses |
(338,591) |
(141,145) |
(479,736) |
(370,332) |
(152,192) |
(522,524) |
(712,715) |
(303,445) |
(1,016,160) |
Net return before interest payable and taxation |
1,050,824 |
(4,332,332) |
(3,281,508) |
633,234 |
(1,857,314) |
(1,224,080) |
1,560,626 |
813,408 |
2,374,034 |
Interest payable |
(28,955) |
(28,955) |
(57,910) |
(41,537) |
(41,537) |
(83,074) |
(76,744) |
(76,744) |
(153,488) |
Return on ordinary activities before taxation |
1,021,869 |
(4,361,287) |
(3,339,418) |
591,697 |
(1,898,851) |
(1,307,154) |
1,483,882 |
736,664 |
2,220,546 |
Taxation on ordinary
activities (note 3) |
(60,581) |
- |
(60,581) |
(62,209) |
- |
(62,209) |
(14,844) |
- |
(14,844) |
Return on ordinary
activities after taxation |
961,288 |
(4,361,287) |
(3,399,999) |
529,488 |
(1,898,851) |
(1,369,363) |
1,469,038 |
736,664 |
2,205,702 |
Return per ordinary
share (note 4) |
1.94p |
(8.82)p |
(6.87)p |
1.07p |
(3.84)p |
(2.77)p |
2.97p |
1.49p |
4.46p |
The Total column of the income statement represents the profit
& loss account of the Company.
All revenue and capital items in the above statement derive from
continuing operations.
There were no recognised gains and losses other than those
disclosed above. Accordingly a statement of total recognised gains
and losses is not required.
Cash Flow Statement
|
For the
six
months
ended 31
October 2015
£
(unaudited) |
For the
six
months
ended 31
October 2014
£
(unaudited) |
For the
year
ended
30 April
2015
£
(audited) |
Operating
activities |
|
|
|
Investment income
received |
1,267,945 |
1,072,113 |
2,167,568 |
Interest received |
111 |
14,588 |
16,139 |
Investment management
and administration fees paid |
(386,844) |
(405,365) |
(801,995) |
Cash paid to and on
behalf of directors |
(21,967) |
(21,500) |
(43,000) |
Other cash
payments |
(97,849) |
(118,469) |
(179,961) |
Exchange differences
on foreign currency cash balances |
(44,308) |
391,711 |
728,558 |
Net cash inflow
from operating activities (note 6) |
717,088 |
933,078 |
1,887,309 |
Servicing of finance |
|
|
|
Interest paid |
(60,672) |
(83,437) |
(154,355) |
|
|
|
|
Taxation |
|
|
|
Taxation
recovered |
- |
39,101 |
126,034 |
|
|
|
|
Capital expenditure
and financial investment |
|
|
|
Purchase of
investments |
(24,043,540) |
(9,401,860) |
(33,352,758) |
Sale of
investments |
25,047,113 |
9,928,919 |
32,280.340 |
|
|
|
|
Cash inflow before financing |
1,659,989 |
1,415,801 |
786,570 |
|
|
|
|
Equity dividend
paid (note 5) |
(1,395,191) |
(1,137,922) |
(1,137,922) |
|
|
|
|
Financing |
|
|
|
Loan (repaid) / drawn
down |
(249,192) |
1,294 |
337,632 |
Increase / (decrease) in cash |
15,606 |
279,173 |
(13,720) |
Statement of Changes in Equity
For the
six months ended 31 October 2015 (unaudited) |
|
|
Called-up Share capital
(£) |
Share premium
(£) |
Capital reserve-realised
(£) |
Capital
reserve- investment holding losses
(£) |
Capital Redemption reserve
(£) |
Revenue reserve
(£) |
Total shareholders’ funds
(£) |
Shareholders’ funds at
1 May 2015 |
497,820 |
18,426,406 |
(4,526,388) |
4,309,452 |
8,167,389 |
1,560,717 |
28,435,396 |
Return on ordinary
activities after taxation |
- |
- |
1,844,687 |
(6,205,974) |
- |
961,288 |
(3,399,999) |
Dividend paid during
the period |
- |
- |
- |
- |
- |
(1,395,191) |
(1,395,191) |
Shareholders’ funds at
31 October 2015 |
497,820 |
18,426,406 |
(2,681,701) |
(1,896,522) |
8,167,389 |
1,126,814 |
23,640,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
six months ended 31 October 2014 (unaudited) |
|
Called-up Share capital
(£) |
Share premium
(£) |
Capital reserve-realised
(£) |
Capital
reserve- investment holding losses
(£) |
Capital Redemption reserve
(£) |
Revenue reserve
(£) |
Total shareholders’ funds
(£) |
Shareholders’ funds at
1 May 2014 |
497,820 |
18,426,406 |
(7,384,125) |
6,430,525 |
8,167,389 |
1,229,601 |
27,367,616 |
Return on ordinary
activities after taxation |
- |
- |
1,308,449 |
(3,207,300) |
- |
529,488 |
(1,369,363) |
Dividend paid during the period |
- |
- |
- |
- |
- |
(1,137,922) |
(1,137,922) |
Shareholders’ funds at
31 October 2014 |
497,820 |
18,426,406 |
(6,075,676) |
3,223,225 |
8,167,389 |
621,167 |
24,860,331 |
For the
year ended 30 April 2015 (audited) |
|
|
Called-up Share capital
(£) |
Share premium
(£) |
Capital reserve-realised
(£) |
Capital
reserve- investment holding losses
(£) |
Capital Redemption reserve
(£) |
Revenue reserve
(£) |
Total shareholders’ funds
(£) |
Shareholders’ funds at
1 May 2014 |
497,820 |
18,426,406 |
(7,384,125) |
6,430,525 |
8,167,389 |
1,229,601 |
27,367,616 |
Return on ordinary
activities after taxation |
- |
- |
2,857,737 |
(2,121,073) |
- |
1,469,038 |
2,205,702 |
Dividend paid during the period |
- |
- |
- |
- |
- |
(1,137,922) |
(1,137,922) |
Shareholders’ funds at 30 April 2015 |
497,820 |
18,426,406 |
(4,526,388) |
4,309,452 |
8,167,389 |
1,560,717 |
28,435,396 |
|
|
|
|
|
|
|
|
|
Notes
1. The financial statements for the six months to
31st October 2015 have
been prepared on the basis of the accounting policies set out in
the Company’s Annual Report and Accounts as at 30th
April 2015 in accordance with FRS 104
“Interim Financial Reporting” and applicable to UK law and
accounting standards.
2. All expenses are charged to the revenue account with the
exception of management fees and interest charges on borrowings,
one half of which less the appropriate tax relief is charged to
capital. Investment Management and Administrators fees
totalled £380,290 in the period (2014 Full year -
£802,890)
3. The taxation charge arises wholly from overseas withholding
tax on investment income and in the year to 30th
April 2015 includes a refund of
Polish and French withholding tax.
4. The return per ordinary share is based upon the following
figures:
|
31
October 2015
(unaudited) |
31
October 2014
(unaudited) |
30 April 2015
(audited) |
Revenue return |
£961,288 |
£529,488 |
£1,469,038 |
Capital
return |
£(4,361,287) |
£(1,898,851) |
£736,664 |
Weighted
average number of ordinary shares in issue during the period |
49,474,863 |
49,474,863 |
49,474,863 |
The net asset value per ordinary share is calculated on
49,474,863 ordinary shares in issue at the end of the period after
deducting treasury shares.
5. No interim dividend is proposed.
6. Cash Flow Statement
Reconciliation of
net revenue return to net cash inflow from operating
activities |
31
October 2015
£
(unaudited) |
31
October 2014
£
(unaudited) |
30 April 2015
£
(audited) |
Net
return before interest payable and taxation |
1,050,824 |
633,234 |
1,560,626 |
Administrative expenses charged to capital |
(141,145) |
(152,192) |
(303,445) |
(Increase)
/ decrease in other debtors |
(67,771) |
150,145 |
24,104 |
Decrease
in other creditors |
(17,966) |
(15,217) |
(8,584) |
Tax
suffered on investment income |
(62,546) |
(74,603) |
(113,950) |
Exchange
differences on foreign currency cash balances |
(44,308) |
391,711 |
728,558 |
Net cash inflow
from operating activities |
717,088 |
933,078 |
1,887,309 |
Reconciliation of
net cash flow to movement in net funds / (debt) |
31
October 2015
£
(unaudited) |
31
October 2014
£
(unaudited) |
30 April 2015
£
(unaudited) |
Increase
/ (decrease) in cash balances |
15,606 |
279,173 |
(13,720) |
Loan
repaid / (drawn down) |
249,192 |
(1,294) |
(337,632) |
Changes in
net funds / (debt) resulting from cash flows |
264,798 |
277,879 |
(351,352) |
Movement in net funds / (debt) in the period |
264,798 |
277,879 |
(351,352) |
7. The Company has credit facilities with KAS
Bank N.V and Interactive Brokers Group Incorporated. Both
loans are secured against the investments held in custody accounts
with the respective lender. As at 31st
October 2014 the prevailing rate of
interest on KAS Bank N.V facility was 1.2% and on Interactive
Brokers Group Incorporated the rate was 0.7%. At 31 October 2015 the amount outstanding with these
facilities was £11,965,059 (2014 - £12,214,252)
8. The total number of shares held in treasury
is 307,125. These shares have no voting rights, do not rank for
dividend and are excluded from the calculation of net asset value
and return per ordinary share. At 31st October 2015 the Company had the authority to
purchase a further 7,467,000 of its own shares. A resolution
to renew this authority will be proposed at the Annual General
Meeting in 2016.
9. The figures and financial information for
the period ended 30th April
2015 are extracted from the latest published accounts of the
Company and do not constitute statutory accounts for the period as
defined in section 434 of the Companies Act 2006. Those
accounts have been delivered to the Registrar of Companies and
include the report of the auditors which was unqualified and did
not contain a statement either under section 498(2) or 498(3) of
the Companies Act 2006. The half yearly Report and Account have not
been audited or reviewed by the Company’s Auditors.