Blue Planet Investment Trust plc (formerly Blue Planet International Financials
Investment Trust plc)
Half Yearly Report and Accounts
For the six months ended 31 October 2014
Officers and Advisors
Directors Investment Manager, Administrator and Secretary
John Tyce (Non-Executive Chairman) Blue Planet Investment Management Ltd
Victoria Killay (Non-Executive) 18a Locker Street
Kenneth Murray (Non-Executive) Sliema
SLM 3124, Malta
Telephone No: +356 2131 4309
Facsimile No: +356 2131 5219
Local call rate from UK 0845 527 7588
www.blueplanet.eu
Registered Office Registrars
Greenside House Capita Asset Services Ltd
25 Greenside Place The Registry
Edinburgh EH1 3AA 34 Beckenham Road
Telephone No: +44 131 466 6666 Beckenham
Facsimile No: +44 131 466 6677 Kent BR3 4TU
E-mail: info@blueplanet.eu Shareholder Helpline No: 0871 664 0300
(calls cost 10p
www.blueplanet.eu per minute plus network extras, lines
are open 8.30am-5.30pm (Mon-Fri))
Overseas: +44 208 639 3399
E-mail: ssd@capitaregistrars.com
www.capitaregistrars.com
Chartered Accountants & Statutory Auditors Bankers
Deloitte LLP Lloyds Banking Group
Saltire Court 1st Floor
20 Castle Terrace 48 Chiswell Street
Edinburgh EH1 2DB London EC1Y 4XX
Custodians Custodians
KAS Bank N.V. Interactive Brokers Group Incorporated
5th Floor, 10 Old Broad Street 5th Floor, One Carey Lane
London EC2N 1AA London EC2V 8AE
Registered Number
SC192153
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 Six months Year
ended 31 ended 31 ended 30
October 2014 October 2013 April 2014
(unaudited) (unaudited) (audited)
Shareholders' funds (£'000) 24,860 25,881 27,368
Net asset value per share (p) 50.25 52.31 55.32
Share price (p) (Bid) 34.00 38.00 39.00
Discount (%) 32.34 27.36 29.50
Gearing (%)* 46.59 52.05 43.30
Return available for shareholders (£'000) 529 544 1,193
Revenue return per share (p) 1.07 1.10 2.41
Total return per share (p) (2.77) 8.37 11.38
Dividend per share (p) - - 2.30
Dividend yield on our shares (%) N/A N/A 5.90
Dividend yield on Benchmark Index (%) N/A N/A 3.54
Ongoing Charges (%) ** 3.81 4.06 3.58
* 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. 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 2014
Country Valuation (£) % of Portfolio
Ordinary Shares
Banco Santander S.A. Spain 1,880,522 5.0
NXP Semiconductors NV United States 1,443,163 3.8
Henderson Group plc United Kingdom 1,421,927 3.8
General Motors Co United States 1,314,145 3.5
Och-Ziff Capital Management United States 1,310,311 3.5
Group LLC
BAE Systems plc United Kingdom 1,238,490 3.3
ETRACS 2x Leveraged Long Wells United States 1,227,338 3.2
Fargo Business Development
Company Index ETN
Friends Life Group United Kingdom 1,214,444 3.2
Bank Of Ireland Eire 1,186,527 3.2
Zurich Insurance Group AG Switzerland 1,180,019 3.1
Man Group plc United Kingdom 1,172,676 3.1
GDF Suez S.A. France 1,129,705 3.0
Catlin plc United Kingdom 1,127,905 3.0
CNP Assurances France 1,114,097 2.9
EDF S.A. France 1,106,283 2.9
Total S.A. France 1,002,176 2.7
SCOR SE France 926,746 2.5
Hercules Technology Growth United States 855,133 2.3
Capital Incorporated
Dart Group plc United Kingdom 819,987 2.2
Mineral Resources Ltd Australia 780,739 2.1
Amerisur Resources plc United Kingdom 636,849 1.7
TCL Communication Technology China 614,640 1.6
Holdings Ltd
Orexigen Therapeutics United States 581,139 1.5
Incorporated
Gulf Keystone Petroleum Ltd United Kingdom 554,278 1.5
Aegean Airlines SA Greece 553,758 1.5
Downer EDI Limited Australia 530,195 1.4
Tesco plc United Kingdom 493,099 1.3
PZ Cussons plc United Kingdom 485,970 1.3
Genel Energy plc United Kingdom 410,527 1.1
KCAP Financial Incorporated United States 380,084 1.0
National Bank of Greece S.A. Greece 372,763 1.0
Ausdrill Limited Australia 353,953 0.9
Piraeus Bank S.A. Greece 326,843 0.9
Transportadora de Gas del Sur Argentina 285,532 0.8
SA
30,031,963 79.8
Preference Shares
Lloyds Banking Group 9.25% United Kingdom 1,070,550 2.8
Natwest Bank 9% United Kingdom 650,000 1.7
Santander UK plc 10.375% United Kingdom 394,760 1.0
Standard Chartered 8.25% United Kingdom 375,000 1.0
Santander UK plc 8.625% United Kingdom 236,000 0.6
RSA Insurance 7.375% United Kingdom 57,750 0.2
Cumulative Preference Share
2,784,060 7.3
Debt Securities
Aviva plc 6.875% 20/05/58 United Kingdom 825,272 2.2
LloydsTSB plc 7.625% 22/04/25 United Kingdom 773,450 2.1
BNP Paribas 4.875% 29/10/49 France 661,613 1.8
Bank of Ireland 13.375% Eire 480,240 1.3
Perpetual
Santander UK 10.0625% 29/10/49 United Kingdom 454,097 1.2
Societe Generale 8.75% France 383,497 1.0
Perpetual
Credit Agricole S.A. France 348,390 0.9
Preference Fund 7% 29/01/49
Friends Life Group 12% 21/05/ United Kingdom 313,997 0.8
21
Credit Agricole S.A. 7.375% 18 France 311,510 0.8
/12/23
4,552,066 12.1
Listed Investments 37,368,089 99.2
Cash 294,911 0.8
Total 37,663,000 100.0
Interim Management Report (continued)
Performance
The six months to 31st October 2014 was a very volatile and not very productive
period for financial markets. Over that period the FTSE 100 Total Return Index
lost 1.8% while we had a total return of -5%, this includes the dividend of
2.30p per share we paid to shareholders on the 26th August 2014. When dividends
paid are excluded from the calculations the FTSE 100 Index fell 3.4%, while our
NAV fell 9.2%.
With relatively high levels of gearing and a recovery/growth orientated
portfolio we are bound to be held back in such periods of uncertainty. However,
the reasons for this period of uncertainty were not material from an economic
standpoint and it will pass.
Income and Dividends
Despite this volatility our investment income continued to grow strongly. At
the half year end we had income from investments of £988,978. This was 19.6%
higher than we earned in the comparable period last year. 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 2015
to be of a similar level to the one paid last year. For those wondering why
with a near 20% increase in investment income at the interim stage we are not
forecasting a higher dividend, it must be borne in mind that last year we
benefitted from a one-off Polish withholding tax rebate of £170,000 which will
not be repeated this year. Nevertheless, the underlying trend in investment
income is upwards and we anticipate that trend to continue. It must, however,
be stressed that these are projections made in good faith with the purpose of
informing shareholders and they cannot be relied upon. The actual outcomes may
be worse (perhaps materially) or better than this.
Outlook
Volatility peaked in October, which was the most volatile month we have seen in
many years, far eclipsing the volatility that had been building up in August
and September. This resulted in a big sell-off of stocks followed by a strong
rally into the month end. The good news is that with that sell-off out of the
way the market is now well positioned to move higher in the coming months.
Various reasons were cited for this increased anxiety amongst some investors
including the cessation of Quantitative Easing in the US and the UK, a slowdown
in Chinese economic growth, German attempts to thwart Quantitative Easing by
the ECB, the situation in Ukraine, Syria, Iraq, the Scottish Independence vote,
etc. but in truth it was little more than a typical mid-rally bout of nerves by
investors. The reality is that in the markets we are invested in, corporate
earnings are continuing to grow at a healthy rate, the number of people in
employment is rising, banks are beginning to lend again (a critical catalyst
for future growth), energy prices are falling and economic growth is picking
up. Even in Europe, where the economic recovery is at its most anaemic, it is
slowly but surely recovering. In the US and UK, GDP growth in the third quarter
of this year was 3.9% and 3.0% respectively. In addition, the ECB and EBA
announced the results of their Comprehensive Assessment of the capital adequacy
of 130 key banks in Europe. This showed there to be an aggregate capital
shortfall of only €10 billion, spread across 13 banks. This is far lower than
many expected and shows that the EU banking sector is financially sound and
well advanced in its recovery from the dark days of 2009. All of the banks in
which we are invested passed and were shown to have sufficient capital to deal
with even the most challenging of situations.
In our opinion, there are still between one and three years of economic and
earnings growth ahead of us before this cycle starts to tail off. Over that
period stock markets will move higher and there will be money to be made. As
the cycle matures we will lower our exposure to recovery/growth stocks and
increase our holdings of lower volatility, higher yielding investments so as to
protect our capital and income.
We have a good portfolio of investments that produce a high level of income and
which, we believe, have very good future prospects. With the recent market
sell-off out of the way we now expect those investments to rise in value and
our share price with them.
In the six months to 31st October 2014 our share price fell by 12.8% to 34p.
This was disproportionate relative to the fall in the Company's NAV. On 19th
November, our share price stood at 35p, a discount to NAV of 33%. We believe
that our shares are cheap at current levels particularly when one considers our
record of outperformance since our merger in 2012, the quality of our portfolio
and our high prospective dividend yield of roughly 6.6%.
Gearing and Capital Allocation
At the end of the six month period to 31st October 2014 the Trust had gearing,
net of cash, equal to 46.6% of NAV and its portfolio was allocated as follows:
79.8% was invested in equities; 12.1% in bonds; 7.3% preference shares and 0.8%
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 last year end 30th April 2014.
Figure 1: Portfolio movements - by asset class
Security Type Oct-14 Apr-14
Ordinary Shares 79.8% 80.8%
Bonds 12.1% 12.2%
Preference Shares 7.3% 7.0%
Cash 0.8% 0.0%
Total 100.0% 100.0%
Figure 2: Portfolio movements - by geography
Country Name Oct-14 Apr-14
United Kingdom 39.4% 44.6%
United States 19.0% 18.6%
France 18.7% 19.2%
Spain 5.0% 3.6%
Eire 4.5% 4.5%
Australia 4.5% 5.4%
Greece 3.4% 1.4%
Switzerland 3.2% 2.7%
China 1.6% 0.0%
Argentina 0.8% 0.0%
100.0% 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 46.6%. 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.
With the approval of Shareholders at the AGM in August, the Company shortened
its name to "Blue Planet Investment Trust plc"
I would like to thank all shareholders for your continuing support.
John Tyce
Chairman
02 December 2014
Balance Sheet
At 31 October At 31 October At 30 April
2014 2013 2014
£ £ £
(unaudited) (unaudited) (audited)
Fixed assets
Listed equity investments 32,816,023 34,388,997 35,011,447
Listed non - equity investments 4,552,066 5,405,112 4,877,963
37,368,089 39,794,109 39,889,410
Current assets
Debtors 182,672 329,316 324,665
Cash at bank and in hand 294,911 225,852 15,738
Creditors: amounts falling due (12,985,341) (14,468,404) (12,862,197)
within one year (note 7)
Net current liabilities (12,507,758) (13,913,236) (12,521,794)
Net assets 24,860,331 25,880,873 27,367,616
Capital and reserves
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 (6,075,676) (7,384,083) (7,384,125)
Capital reserve - investment holding 3,223,225 5,592,967 6,430,525
gains
Capital redemption reserve 8,167,389 8,167,389 8,167,389
Revenue reserve 621,167 580,374 1,229,601
Shareholders' funds 24,860,331 25,880,873 27,367,616
Net asset value per ordinary share 50.25p 52.31p 55.32p
(note 4)
Statement of Directors' responsibilities
The Directors confirm that this set of condensed financial statements has been
prepared in accordance with the ASB's Statement " Half Yearly Financial
Reports" 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
02 December 2014
Income Statement
For the six months ended 31 For the six months ended 31 For the year ended 30 April
October 2014 October 2013 2014
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £ £ £ £
Capital (losses) / gains on investment
Net realised gains - 1,093,414 1,093,414 - 1,577,145 1,577,145 - 1,567,107 1,567,107
Unrealised (losses) / - (3,190,247) (3,190,247) - 1,836,105 1,836,105 - 2,672,436 2,672,436
gains
Exchange gains - 391,711 391,711 - 354,446 354,446 - 559,496 559,496
Net capital(losses) / - (1,705,122) (1,705,122) - 3,767,696 3,767,696 - 4,799,039 4,799,039
gains on investment
Income from investments 988,978 - 988,978 827,052 - 827,052 1,910,045 - 1,910,045
Bank interest receivable 14,588 - 14,588 10 - 10 72,003 - 72,003
Gross revenue and 1,003,566 (1,705,122) (701,566) 827,062 3,767,696 4,594,758 1,982,048 4,799,039 6,781,087
capital gains / (losses)
Administrative expenses (370,332) (152,192) (522,524) (342,398) (137,126) (479,524) (769,523) (290,190) (1,059,713)
Net return before 633,234 (1,857,314) (1,224,080) 484,664 3,630,570 4,115,234 1,212,525 4,508,849 5,721,374
interest payable and
taxation
Interest payable (41,537) (41,537) (83,074) (31,755) (31,755) (63,510) (72,518) (72,518) (145,036)
Return on ordinary 591,697 (1,898,851) (1,307,154) 452,909 3,598,815 4,051,724 1,140,007 4,436,331 5,576,338
activities before
taxation
Taxation on ordinary (62,209) - (62,209) 90,855 - 90,855 52,984 - 52,984
activities (note 3)
Return on ordinary 529,488 (1,898,851) (1,369,363) 543,764 3,598,815 4,142,579 1,192,991 4,436,331 5,629,322
activities after taxation
Return per ordinary share 1.07p (3.84)p (2.77)p 1.10p 7.27p 8.37p 2.41p 8.97p 11.38p
(note 4)
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 For the six For the year
months months ended
ended 31 ended 31 30 April
October 2014 October 2013 2014
£ £ £
(unaudited) (unaudited) (audited)
Operating activities
Investment income received 1,072,113 944,912 1,834,379
Interest received 14,588 10 72,003
Investment management and administration (405,365) (360,373) (764,650)
fees paid
Cash paid to and on behalf of directors (21,500) (21,500) (43,000)
Other cash payments (118,469) (122,770) (254,570)
Exchange differences on foreign currency 391,711 354,446 559,496
cash balances
Net cash inflow from operating activities 933,078 794,725 1,403,658
(note 6)
Servicing of finance
Interest paid (83,437) (60,411) (140,832)
Taxation
Taxation recovered 39,101 70,897 182,800
Capital expenditure and financial
investment
Purchase of investments (9,401,860) (22,349,033) (32,100,553)
Sale of investments 9,928,919 17,028,961 27,750,193
Cash inflow / (outflow) before financing 1,415,801 (4,514,861) (2,904,734)
Equity dividend paid (note 5) (1,137,922) (677,806) (677,806)
Financing
Loan drawn down 1,294 5,393,551 3,573,310
Increase / (decrease) in cash 279,173 200,884 (9,230)
Reconciliation of Movements in Shareholders' Funds
For the six months ended 31 October 2014 (unaudited)
Called-up Share Capital Capital Capital Revenue Total
Share premium reserve-realised reserve- Redemption reserve shareholders'
capital investment reserve funds
(£) (£) holding (£)
(£) losses (£) (£)
(£)
Shareholders' funds at 497,820 18,426,406 (7,384,125) 6,430,525 8,167,389 1,229,601 27,367,616
1 May 2014
Return on ordinary - - 1,308,449 (3,207,300) - 529,488 (1,369,363)
activities after
taxation
Dividend paid during - - - - - (1,137,922) (1,137,922)
the period
Shareholders' funds at 497,820 18,426,406 (6,075,676) 3,223,225 8,167,389 621,167 24,860,331
31 October 2014
For the six months ended 31 October 2013 (unaudited)
Called-up Share Capital Capital Capital Revenue Total
Share premium reserve-realised reserve- Redemption reserve shareholders'
capital investment reserve funds
(£) (£) holding (£)
(£) losses (£) (£)
(£)
Shareholders' 497,820 18,426,406 (8,924,257) 3,534,326 8,167,389 714,416 22,416,100
funds at 1
May 2013
Return on - - 1,540,174 2,058,641 - 543,764 4,142,579
ordinary
activities
after
taxation
Dividend paid - - - - - (677,806) (677,806)
during the
period
Shareholders' 497,820 18,426,406 (7,384,083) 5,592,967 8,167,389 580,374 25,880,873
funds at 31
October 2013
For the year ended 30 April 2014 (audited)
Called-up Share Capital Capital Capital Revenue Total
Share premium reserve-realised reserve- Redemption reserve shareholders'
capital investment reserve funds
(£) (£) holding (£)
(£) losses (£) (£)
(£)
Shareholders' funds at 497,820 18,426,406 (8,924,257) 3,534,326 8,167,389 714,416 22,416,100
1 May 2013
Return on ordinary - - 1,540,132 2,896,199 - 1,192,991 5,629,322
activities after
taxation
Dividend paid during - - - - - (677,806) (677,806)
the period
Shareholders' funds at 497,820 18,426,406 (7,384,125) 6,430,525 8,167,389 1,229,601 27,367,616
30 April 2014
Notes
1. The financial statements for the six months to 31st October 2014 have been
prepared on the basis of the accounting policies set out in the Company's
Annual Report and Accounts as at 30th April 2014 in accordance with the
statement on half yearly financial reports issued by the ASB 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 £402,384 in the period (2014 Full year - £
776,380)
3. The taxation charge arises wholly from overseas withholding tax on
investment income and in the year to 30th April 2014 includes a refund of
Polish withholding tax from a prior period.
4. The return per ordinary share is based upon the following figures:
31 October 31 October 30 April
2014 2013 2014
(unaudited) (unaudited) (audited)
Revenue return £529,488 £543,764 £1,192,991
Capital return £ £3,598,815 £4,436,331
(1,898,851)
Weighted average number of ordinary shares 49,474,863 49,474,863 49,474,863
in issue during the period
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 31 October 31 October 30 April
cash inflow from operating activities 2014 2013 2014
£ £ £
(unaudited) (unaudited) (audited)
Net return before interest payable and 633,234 484,664 1,212,525
taxation
Administrative expenses charged to capital (152,192) (137,126) (290,190)
Decrease in other debtors 150,145 157,210 52,414
Decrease in other creditors (15,217) (16,781) (2,396)
Tax suffered on investment income (74,603) (47,688) (128,191)
Exchange differences on foreign currency 391,711 354,446 559,496
cash balances
Net cash inflow from operating activities 933,078 794,725 1,403,658
Reconciliation of net cash flow to movement 31 October 31 October 30 April
in net funds / (debt) 2014 2013 2014
£ £ £
(unaudited) (unaudited) (unaudited)
Increase / (decrease) in cash balances 279,173 200,884 (9,230)
Loan drawn down (1,294) (5,393,550) (3,573,310)
Changes in net funds / (debt) resulting from 277,879 (5,192,666) (3,582,540)
cash flows
Movement in net funds / (debt) in the period 277,879 (5,192,666) (3,582,540)
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 1.0%. At 31 October
2013 the amount outstanding with these facilities was £11,877,914 (2014 -
£11,876,620)
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 2014 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 2015.
9. The figures and financial information for the period ended 30th April 2014
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.