TIDMLSAA TIDMLSAB TIDMLSAD TIDMLSAE
RNS Number : 8533N
Life Settlement Assets PLC
27 September 2019
LIFE SETTLEMENT ASSETS PLC
LEI: 2138003OL2VBXWG1BZ27
(the "Company" or "LSA")
Half-year Announcement
Strong performance enabling a substantial maiden distribution to
shareholders
LSA, a closed-ended investment company which manages portfolios
of whole and fractional interests in life settlement policies
issued by life insurance companies operating predominantly in the
United States, is pleased to announce its unaudited half-year
results for the period ended 30 June 2019.
Highlights
-- Maiden distribution - return of capital shortly after the period end of USD 21.5m paid to Shareholders of Class A,
D and E
-- Total maturities for the first six months amounted to USD 33.9m (HY2018: USD 20.3m), generating gains from life
settlement portfolios of USD 15.6m (HY2018: loss of USD 0.7m)
-- Total net income of USD 9.2m (HY2018: loss of USD 4.9m)
Movements in net assets in the six-month period
Share Class Share Class Share Class B Share Class Share Class
A D E
30.06.19 31.12.18 30.06.19 31.12.18 30.06.19 31.12.18 30.06.19 31.12.18
--------- --------- --------- --------- --------- --------- --------- ---------
Net assets
attributable
to shareholders
(USD '000) 99,687 91,649 14,901 16,150 12,957 11,591 9,336 8,247
--------- --------- --------- --------- --------- --------- --------- ---------
NAV per share
(USD) 2.19 2.02 1.02 1.11 1.39 1.25 5.39 4.76
--------- --------- --------- --------- --------- --------- --------- ---------
Closing share
price
(USD) 1.73 1.45 0.67 0.60 0.95 0.60 2.70 1.70
--------- --------- --------- --------- --------- --------- --------- ---------
Discount
to NAV 21.0% 28.1% 34.3% 45.8% 31.7% 51.9% 49.9% 64.3%
--------- --------- --------- --------- --------- --------- --------- ---------
Comparison with period to 30 June 2018
Share Class Share Class Share Class B Share Class Share Class
A D E
30.06.19 30.06.18 30.06.19 30.06.18 30.06.19 30.06.18 30.06.09 30.06.18
--------- ---------- ---------- --------- --------- --------- --------- ---------
Total maturities
(USD '000) 23,981 13,698 2,079 2,989 4,712 1,747 3,176 1,844
--------- ---------- ---------- --------- --------- --------- --------- ---------
Net income
from portfolio
(USD '000) 13,207 410 (872) (266) 2,126 (717) 1,640 149
--------- ---------- ---------- --------- --------- --------- --------- ---------
Profit/(Loss)
before tax
(USD '000) 8,036 (3,205) (1,248) (676) 1,366 (918) 1,090 (101)
--------- ---------- ---------- --------- --------- --------- --------- ---------
Jean Medernach, Chairman of LSA, said:
"We are pleased to be able to return USD 21.5m to our
shareholders shortly after the period end for Share Class A, D and
E in light of sizeable maturities, continuing our long track record
of returning capital to our shareholders. As maturities arise, we
seek to invest and acquire suitable policies to replenish our
portfolio to ensure continued growth."
Enquiries:
Acheron Capital Limited (Investment Manager)
Jean-Michel Paul
020 7258 5990
Shore Capital (Financial Adviser and Broker)
Robert Finlay
020 7408 4080
George Bayer / Kerry Higgins
Maitland Administration Services Limited
Company Secretary
Tel: 01245 209780
TB Cardew (Financial PR)
Shan Shan Willenbrock
020 7930 0777
CHAIRMAN'S STATEMENT
Introduction
On behalf of the Board, I am pleased to present our half-year
results for the period ended 30 June 2019. Despite the continued
economic uncertainty, the period under review was one of progress
and value for our shareholders, and shortly after the period end,
we were able to return capital of USD 21.5m to shareholders of
Class A (LSAA), Class D (LSAD) and Class E (LSAE), which resulted
from sizable maturities totalling USD 33.9m. This was our maiden
distribution since we listed on the London Stock Exchange last year
and in line with our policy to distribute a substantial portion of
the Company's funds to shareholders.
Investment Performance
Total maturities for the first six months amounted to USD 33.9m,
well above the maturities for the comparative period in 2018 (USD
20.3m) and the full year 2018 (USD 33.4m), generating gains from
life settlement portfolios of USD 15.6m (compared to a loss of USD
0.7m in the period to 30 June 2018). Total net income for the half
year amounted to a profit of USD 9.2m compared to a loss of USD
4.9m in the first half year 2018.
Our portfolio performance was however mixed in the period under
review. The portfolio for non-HIV policies "elderly segment"
performed above expectations for all Classes except Class B (LSAB).
The HIV portfolio performed below expectations. This was due to
policies with smaller face values maturing.
Actual to expected (A/E) ratios of each share class
Non-HIV HIV
--------------------- ----------
Class A 240% 85%
--------------------- ----------
Class B 70% n/a
--------------------- ----------
Class D 237% 4%
--------------------- ----------
Class E 252% 72%
--------------------- ----------
While aggregate maturities for the first six months were strong
due to some large individual policies maturing, it is worth noting
that LSA's performance would have been in line with projections
even without these maturities.
Since the period end, the Company has been notified of a number
of maturities including the most significant policy across share
classes A, D and E. This policy has a face value of c. USD 15m
across all Share Classes.
As maturities occur, it is important that we continue to seek
and acquire additional fractional policies in the existing policies
portfolio to ensure continued growth and further consolidate the
ownership in these policies. In the period under review, small
portfolios of fractional policies with a total face value of USD
12.6m were added for a total investment of approximately USD
1m.
Our Share Classes
LSAA's NAV per share increased to USD 2.19 (31 December 2018:
USD 2.02) during the period. This can be mainly attributed to the
impact of the non-HIV portfolio performing above expectations with
a number of maturities occurring during the period. This was
reasonably expected given the maturity profile of the segment.
LSAA's NAV performance was tapered by small face value maturities
in the HIV segment.
LSAB reduced to USD 1.02 (31 December 2018: USD 1.11). This is a
relatively small portfolio and as such, there is a degree of
concentration risk which means a low level of maturities in one
year can be followed by a period of increased maturities, thereby
enhancing the future income stream.
LSAD and LSAE are made up of fractional policies and have a
relatively high concentration on a few lives. LSAD NAV per share
rose to USD 1.39 (31 December 2018: USD 1.25) and LSAE NAV per
share rose to USD 5.39 (31 December 2018: USD 4.76).
Return of Capital
Shortly after the period end the Company made a return of
capital to shareholders. The Board considered a number of factors
in determining the amount returned to shareholders. Appropriate
levels of cash must be made available to each Share Class to fund
premium payments and to preserve our portfolio of policies. In
addition, cash needs to be reserved to replenish our portfolios
with whole or partial policies as maturities arise to ensure
continued growth. For LSAA, your Board has sought to balance the
interests of selling and continuing shareholders by offering a
combination of a tender offer and a dividend. In the case of the
LSAD and LSAE, we decided to return cash principally by dividend
given the narrow ownership of these share classes; the relatively
small share buy-back programme was included to provide some stock
market liquidity.
Our return of capital was structured as follows:
-- For LSAA, a special dividend totalling USD 2.5m (USD 5.50
cents per share) and a tender offer of up to USD 10m was initiated
and in each case was financed out of distributable reserves created
by the cancellation of the share premium account. Shareholders of
LSAA were entitled to tender up to approximately 12.2 per cent of
the outstanding Ordinary A Shares and the tender price was at a
discount of 17.6 per cent. to the NAV per A Ordinary Share (as at
31 March 2019). The tender offer was oversubscribed and more than
70 per cent. (33,474,675 A Ordinary Shares) of the Company's A
Ordinary Shares were tendered under the tender Offer. A total
5,555,555 A Ordinary Shares were validly tendered under the tender
Offer. The total return of capital to shareholders of LSAA
(inclusive of the special dividend and tender offer) amounted to
USD 12.5m.
-- For LSAD, a special dividend totalling USD 3.5m (USD 37.66
cents per share) was paid and a share buyback programme of up to a
maximum of USD 0.5m initiated and in each case was financed out of
distributable reserves created on the cancellation of the share
premium account. The total return of capital to shareholders of
LSAD (inclusive of the special dividend and the share buyback
programme) amounted to USD 4m.
-- LSAE, a special dividend totalling USD 4.5m (US 259.62 cents
per share) was paid and a share buyback programme of up to a
maximum of USD 0.5 million initiated, in each case to be financed
out of distributable reserves created on the cancellation of the
share premium account. The total return of capital to shareholders
of LSAE (inclusive of the special dividend and the share buyback
programme) amounted to USD 5m.
Outlook
The HIV segment of our portfolio which performed below
expectations in the period under review has shown improvements.
Since the period end, the Company has been notified on a number of
maturities including the most significant policy across share
classes A, D and E. This policy has a face value of c. USD 15m
across all Share Classes.
Following this large maturity, it is expected that future cash
flows will be reduced. The portfolio has performed well, but is now
unbalanced, with most of the maturities in the HIV portfolio
expected over a longer period. In order to address this imbalance
and the associated risk, the Investment Manager has recommended
that as a precautionary measure, a discount rate of 12% be used
from the July 2019 NAV onwards in respect of the HIV component of
the portfolio.
As a result of the maturities received and returns of capital
made to shareholders after the period end, the NAV per share class
at 31 August 2019 was: LSAA USD 2.30 per share, LSAB USD 1.01 per
share, LSAD USD 1.15 per share and LSAE USD 3.50 per share.
The Board is cognisant of the need to re-invest and replenish
its portfolio of policies. It continues to examine opportunities to
acquire fractional policies at a discount and transforming them
into wholly owned policies, which will also act to mitigate this
concentration risk.
Having guided the Company over the course of the transition from
Luxembourg to the UK I have notified the Board of my intention to
step down as a Director and Chairman of the Company with effect
from 1 October 2019. The Board has appointed Michael Baines as
interim Chairman and has commenced a process to recruit a new
director.
Jean Medernach
Chairman
27 September 2019
TRUSTS' INVESTMENT MANAGER'S REPORT
The principal activities of the Company are to support and
manage portfolios of whole and partial interests in life settlement
policies issued by life insurance companies operating in the United
States. The Company acquires both individual life insurance
policies and portfolios of such policies via either the secondary
market, liquidation, bankruptcies or private placements. The life
settlement market enables people to sell their life insurance
policies to investors at a higher cash value than they would
otherwise receive from insurance companies. An investor acquiring
the life insurance policy will continue to pay the premiums until
the death of the insured. The insurance company will then pay the
face value of the life insurance policy to the investor.
All four share classes are listed on Specialist Fund Segment of
the London Stock Exchange, with beneficial ownership of the Acheron
Portfolio Trust to the A Ordinary Shares, the Lorenzo Tonti 2006
Portfolio Trust to the B Ordinary Shares, Avernus Portfolio Trust
to the D Ordinary Shares, and the Styx Portfolio Trust to the E
Ordinary Shares. The NAV of each share class is released
monthly.
Acheron Capital Limited ("Acheron Capital" or the "Investment
Manager") is responsible for devising and modelling the investment
strategy of the Company's trusts. Founded in 2005, Acheron Capital
is a London based independent investment manager authorised and
regulated by the FCA, that focuses on niche investment strategies
uncorrelated to the traditional financial markets.
The Investment Manager has:
-- An internally developed pricing policy and portfolio
valuation methodologies
-- Proven actuarial model as evidenced by industry leading
Actual to Expected ratios
The Life Settlement Market
The trends in life expectancy ("LE") have been fundamentally
changing. The rapid improvements in LE seen in the early years of
the 21st century are now a thing of the past. Since 2015, average
LE in the US has gradually declined among all racial and ethnic
groups, which includes declines in nearly 12 preventable diseases
and conditions. Meanwhile, gaps in LE between neighbourhoods are
deepening, as revealed by a new study by NYU School of Medicine.
These gaps mean that residents in one neighbourhood may live 20 to
30 years longer than those just a mile away - and the inequalities
are prevalent in cities with high levels of racial and ethnic
segregation, such as Chicago and New York. The US is not the only
country experiencing lower LE. According to data from the UK's
Institute and Faculty of Actuaries (IFOA), LE for both men and
women in the UK is about five months lower than that in the
organisation's previous model. Also, the recent publication of the
Continuous Mortality Investigation (CMI) 2018 model suggests the
trend of falling life expectancies is expected to continue and by
the end of 2019 assumed life expectancies will be back to levels
last seen in 2009.
Portfolio
The overall portfolio is subdivided into portfolios exposed to
either HIV-positive policy holders or non-HIV positive policy
holders. The following table provides information on the Company's
policies by Share Class and by exposure to HIV and non-HIV positive
insureds in the period under review.
Share Class A HIV Non-HIV Total
Number of policies 4,387 208 4,595
-------- -------- --------
Total face value
(USD'000) 359,898 90,871 450,769
-------- -------- --------
Valuation (USD'000) 41,773 20,715 62,488
-------- -------- --------
Percentage of
face 11.6% 22.8% 13.9%
-------- -------- --------
Share Class B
-------- -------- --------
Number of policies N/A 105 105
-------- -------- --------
Total face value
(USD'000) N/A 54,575 54,575
-------- -------- --------
Valuation (USD'000) N/A 9,832 9,832
-------- -------- --------
Percentage of
face N/A 18.0% 18.0%
-------- -------- --------
Share Class D
-------- -------- --------
Number of policies 374 83 457
-------- -------- --------
Total face value
(USD'000) 16,498 19,154 35,652
-------- -------- --------
Valuation (USD'000) 2,484 5,200 7,684
-------- -------- --------
Percentage of
face 15.1% 27.1% 21.6%
-------- -------- --------
Share Class E
-------- -------- --------
Number of policies 164 60 224
-------- -------- --------
Total face value
(USD'000) 6,616 10,529 17,145
-------- -------- --------
Valuation (USD'000) 1,037 2,757 3,794
-------- -------- --------
Percentage of
face 15.7% 26.2% 22.1%
-------- -------- --------
In the first half of 2019, small portfolios of fractional
policies, to which the trusts were already overwhelmingly exposed,
were added. The Company gained additional exposure to 55 policies
with an additional face value of USD 12.4m which were assigned to
the portfolio held by Acheron Portfolio Trust. The remaining one
fractional policy with a face value of USD 0.2m was allocated to
Avernus Portfolio Trust.
Maturities in the period to 30 June 2019 can be seen in the
table below.
Class A Class B Class D Class E
HIV Maturities
(USD'000) 3,300 N/A 7 62
-------- -------- -------- --------
Non-HIV Maturities
(USD'000) 20,681 2,079 4,705 3,114
-------- -------- -------- --------
Total Maturities
(USD'000) 23,981 2,079 4,712 3,176
-------- -------- -------- --------
In the period under review, the elderly segment of the portfolio
experienced high level of maturities, leading estimated A/E to
240%. We were notified of an additional Non-HIV maturity - the 1st
largest exposure - for July, contributing USD 15m across all Share
Classes. While the Non-HIV portfolio has performed well above
expectations, the HIV portfolio has not reached expectations during
the first half year. The underperformance is the result of a decent
quantity of matured policies, but with small face values.
At 30 June 2019, LSAA had a NAV of USD 2.19 per share, LSAB had
a NAV of USD 1.02, LASD and LSAE had a NAV of USD 1.39 and USD 5.39
respectively. NAV performance history can be seen in the table
below.
Class A Year Jan Feb Mar Apr May Jun YTD
Total NAV
Return 2019 -1.46% 9.64% 0.27% -1.06% 2.10% -0.61% 8.77%
------ ------- ------ ------ ------- ------ ------- ------
Class B Year Jan Feb Mar Apr May Jun YTD
Total NAV
Return 2019 -2.71% 0.56% -1.07% -2.78% -0.98% -0.97% -7.74%
------ ------- ------ ------- ------- ------- ------- -------
Class D Year Jan Feb Mar Apr May Jun YTD
Total NAV
Return 2019 -1.48% 10.37% 1.63% -1.63% 2.91% -0.15% 11.79%
------ ------- ------- ------ ------- ------ ------- -------
Class E Year Jan Feb Mar Apr May Jun YTD
Total NAV
Return 2019 -2.47% 19.62% 0.68% -1.74% -1.12% -0.86% 13.21%
------ ------- ------- ------ ------- ------- ------- -------
Portfolio Composition
Further information on the composition of the portfolio of each
Share Class as at 30 June 2019 can be found on our website
https://www.lsaplc.com/investor-relations/reports-company-literature
Acheron Capital
27 September 2019
KEY PERFORMANCE INDICATORS (KPIs)
The Board monitors success in implementing the Company's
strategy against a range of key performance indicators (KPIs),
which are viewed as significant measures of success over the longer
term. These key indicators are those provided in the performance
tables above. Although performance relative to the KPIs is
monitored over quarterly periods, it is success over the long-term
that is viewed as more important. This is particularly important
given the inherent volatility of maturities and short-term
investment returns.
The Board has chosen the following KPIs:
-- Share Price - a key measure for shareholders to show the most
likely realisable value of this investment if it was sold. Changes
in the share price are closely monitored by the Board.
-- NAV per share - as this is the primary indicator of the
underlying value attributable to each share.
-- Discount to NAV - as this measure can be used to monitor the
difference between the underlying net asset value and share
price.
-- Total maturities (USD) - the value of the total maturities in
USD provides an indicator of the underlying cash flow that the
Company receives from its main source of income - policy
maturities. There are factors which could impact the outcome of
this performance measure including: average life expectancy and the
age of the underlying policy holders.
Please note that the Actual to Expected ("A/E") ratio, which is
closely linked to the total maturities KPI, is a key method by
which the Board monitors the level of maturities. The A/E ratio
measures the declared maturities compared to the projected
maturities based on the actuarial models. A ratio close to 100%
indicates maturities correspond exactly to the model. A percentage
greater than 100% means the maturities are more than anticipated by
the models and less than 100% the opposite is the case.
-- Profit (Loss) before tax - this is a key measure of financial
performance used to assess the fortunes of the Company over each
financial period.
Please Note: The Company regularly uses performance measures to
present its financial performance. These measures may not be
comparable to similar measures used by other companies, nor do they
correspond to IFRS standards or other accounting principles.
Directors' Statement of Principal Risks and Uncertainties
The important events that have occurred during the period under
review and the key factors influencing the financial statements are
set out in the Chairman's Statement.
In accordance with DTR 4.2.7, the Directors consider that the
principal risks and uncertainties facing the Company have not
materially changed since the publication of the Annual Report and
Accounts for the year ended 31 December 2018.
The principal risks faced by the Company include, but are not
limited to:
-- market price
-- regulatory and tax
-- litigation
-- third party service providers
-- key individuals
-- financial
A more detailed explanation of these risks and the way in which
they are managed can be found in the Strategic Report on pages 17
to 19 and in Note 4 to the Financial Statements on pages 57 to 59
of the 2018 Annual Report and Accounts - copies can be found via
the Company's website, www.lsaplc.com.
There have been no significant changes in the related party
disclosures set out in the Annual Report.
Directors' Statement of Responsibilities in Respect of the
Financial Statements
In accordance with Disclosure and Transparency Rule (DTR) 4.2.10
Jean Medernach (Chairman), Michael Baines (Chairman of the Audit
Committee), Robert Edelstein, Franck Mathe, Yves Mertz and Guner
Turkmen, the Directors, confirm that to the best of their
knowledge:
-- The condensed set of financial statements contained within
this Half-Yearly financial report have been prepared in accordance
with International Accounting Standard ("IAS") 34 'Interim
Financial Reporting' as adopted by the European Union and gives a
true and fair view of the assets, liabilities, financial position
and profit of the Company; and
-- The Half-Yearly financial report includes a fair review of
the information required by the FCA's Disclosure and Transparency
Rule 4.2.7R being disclosure of important events that have occurred
during the first six months of the financial year, their impact on
the condensed set of financial statements and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
-- The Half Yearly financial report includes a fair review of
the information required by the FCA's Disclosure and Transparency
Rule 4.2.8R being disclosure of related party transactions during
the first six months of the financial year, how they have
materially affected the financial position of the Group during the
period and any changes therein.
This Half-Yearly Report was approved by the Board of Directors
on 27 September 2019 and the above responsibility statement was
signed on its behalf by:
Jean Medernach
Chairman
27 September 2019
Life Settlement Assets Plc
Condensed Statement of Comprehensive Income
for the six months ended 30 June 2019
______________________________________________
Six months ended Period ended Period ended
30 June 2019 30 June 2018 31 December 2018
(unaudited) (unaudited) (audited)
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Income
Income from life
settlement
portfolios 435 - 435 275 - 275 566 - 566
Gains/(losses)
from life settlement
portfolios 3 - 15,604 15,604 - (725) (725) - 1,339 1,339
Other income 74 - 74 78 - 78 133 - 133
Net foreign exchange
losses (12) - (12) (52) - (52) (27) - (27)
______ ______ ______ ______ ____ _____ _______ _______ _____
Total income 497 15,604 16,101 301 (725) (424) 672 1,339 2,011
Operating expenses
Investment management
fees 4 (978) (2,066) (3,044) (1,078) 324 (754) (2,101) 75 (2,026)
Other expenses (3,104) - (3,104) (3,090) - (3,090) (4,776) - (4,776)
______ ______ ______ ______ ____ _____ _______ _______ _____
(Loss)/profit
before finance
costs and taxation (3,585) 13,538 9,953 (3,867) (401) (4,268) (6,205) 1,414 (4,791)
Finance costs
Interest payable (639) - (639) (632) - (632) (1,296) - (1,296)
______ ______ ______ ______ ____ _____ _______ _______ _____
(Loss)/profit/before
taxation (4,224) 13,538 9,314 (4,499) (401) (4,900) (7,501) 1,414 (6,087)
Taxation - (70) (70) - - - - - -
______ ______ ______ ______ ____ _____ _______ _______ _____
(Loss)/profit
for the period (4,224) 13,468 9,244 (4,499) (401) (4,900) (7,501) 1,414 (6,087)
====== ===== ====== ======= ====== ===== ======= ====== =====
Return per class
A share USD 6 (0.070) 0.247 0.177 (0.074) 0.003 (0.071) (0.125) 0.041 (0.084)
Return per class
B share USD 6 (0.024) (0.062) (0.086) (0.028) (0.019) (0.047) (0.045) (0.123) (0.168)
Return per class
D share USD 6 (0.042) 0.189 0.147 (0.049) (0.050) (0.099) (0.073) 0.065 (0.008)
Return per class
E share USD 6 (0.160) 0.788 0.628 (0.174) 0.116 (0.058) (0.270) 0.414 0.144
All revenue and capital items in the above statement derive from
continuing operations of the Company.
The Company does not have any income or expense that is not
included in the profit for the period and therefore the profit for
the period is also the total comprehensive income for the
period.
The total column of this statement is the Statement of Total
Comprehensive Income of the Company. The supplementary revenue and
capital columns are prepared in accordance with the Statement of
Recommended Practice ("SORP") issued by the Association of
Investment Companies ("AIC") in November 2014 and updated in
February 2018 with consequential amendments.
The notes form part of these financial statements.
Life Settlement Assets Plc
Condensed Statement of Financial Position
as at 30 June 2019
As at As at As at
30 June 30 June 31 December
2019 2018
(unaudited) 2018 (audited)
Note (unaudited)
USD'000 USD'000 USD'000
Non-current assets
Financial assets at fair value through
profit or loss:
- Life settlement investments 8 83,798 95,170 89,813
- Shares in subsidiaries 2 - 92,626 25,232
_______ _______ _______
83,798 187,796 115,045
Current assets
Maturities receivable 11,709 6,563 17,797
Trade and other receivables 1,060 629 940
Premiums paid in advance 11,089 12,887 13,328
Cash and cash equivalents 36,564 19,270 10,587
_______ _______ _______
60,422 39,349 42,652
_______ _______ _______
Total Assets 144,220 227,145 157,697
Current liabilities
Other payables (2,460) (3,131) (2,015)
Provision for performance
fees (4,879) (2,564) (2,813)
Liabilities to subsidiaries - (92,626) (25,232)
_______ _______ _______
Total liabilities (7,339) (98,321) (30,060)
_______ _______ _______
Net Assets 136,881 128,824 127,637
====== ====== ======
Represented by
Capital and reserves
Share capital 9 711 711 711
Share premium - 133,013 133,013
Special reserve 10 133,013 - -
Capital reserve 14,882 (401) 1,414
Revenue reserve (11,725) (4,499) (7,501)
_______ _______ _______
Total equity attributable 136,881 128,824 127,637
to ordinary shareholders of ====== ====== ======
the Company
Net Asset Value per share
basic and diluted
Class A shares 11 2.1935 2.0300 2.0166
Class B shares 11 1.0209 1.2283 1.1065
Class D shares 11 1.3944 1.1560 1.2473
Class E shares 11 5.3863 4.5559 4.7580
The notes form part of these financial statements
Registered in England and Wales with Company Registration
number: 10918785
Condensed Statement of Changes in Equity
for the six months ended 30 June 2019
________________________________________________________
Share Share Special Capital Revenue Total
capital premium reserve reserve reserve
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Six months ended 30 June 2019
Balance as at 1 January 2019 711 133,013 - 1,414 (7,501) 127,637
Conversion of share premium
account (note 10) - (133,013) 133,013 - - -
Profit/(loss) for the period - - - 13,468 (4,224) 9,244
____ ________ _______ ______ _______ _______
Balance as at 30 June 2019 711 - 133,013 14,882 (11,725) 136,881
===== ======= ======= ====== ======= =======
Of which:
Realised profit 15,937
Unrealised loss (1,055)
Period ended 30 June 2018
Balance as at 16 August 2017 - - - - - -
Shares issued on incorporation 67 - - - - 67
Additional shares issued on
26 March 2018 711 133,013 - - - 133,724
Redemption of redeemable shares (67) - - - - (67)
Loss for the period - - - (401) (4,499) (4,900)
____ _______ ______ ______ _______ _______
Balance as at 30 June 2018 711 133,013 - (401) (4,499) 128,824
==== ====== ===== ===== ====== ======
Of which:
Realised loss (674)
Unrealised profit 273
Period ended 31 December 2018
Balance as at 16 August 2017 - - - - - -
Shares issued on incorporation 67 - - - - 67
Additional shares issued on
26 March 2018 711 133,013 - - - 133,724
Redemption of redeemable shares (67) - - - - (67)
Profit/(loss) for the period - - - 1,414 (7,501) (6,087)
____ _______ _______ ______ _______ ______
Balance as at 31 December 2018 711 133,013 - 1,414 (7,501) 127,637
===== ====== ===== ====== ====== ======
Of which:
Realised loss (1,248)
Unrealised profit 2,662
The notes form part of these financial statements.
Life Settlement Assets Plc
Condensed Cash Flow Statement
for the six months ended 30 June 2019
____________________________________________________
Six Period Period
ended 31
December2018
months ended ended (audited)
30 June 2019 30 June
(unaudited) 2018
(unaudited)
USD'000 USD'000 USD'000
Cash flow from (used in) operating
activities
Profit/(loss) for the period 9,244 (4,900) (6,087)
Non-cash adjustment
* movement on portfolios 7,379 2,291 8,700
* value adjustment on shares in subsidiary - - (5)
Changes in operating assets and liabilities
Changes in maturities receivables 6,088 7,306 (3,927)
Changes in trade and other receivables (120) (51) (363)
Changes in premiums paid in advance 2,239 1,013 561
Changes in other payables 2,510 (4,769) (5,625)
Changes in liabilities to subsidiary - - 5
______ ______ ______
Net cash flows from (used in) operating
activities 27,340 890 (6,741)
Cash flow (used in)/from investing
activities
Investment in life settlement portfolios (1,077) (298) (1,272)
Cash acquired from Predecessor Company - 18,833 18,833
______ ______ ______
Net cash flows (used in)/from investing
activities (1,077) 18,535 17,561
Cash flow used in financing activities
Movements in "policy loans" (286) (155) (233)
_____ ______ ______
Net cash flows used in financing
activities (286) (155) (233)
______ ______ ______
Net changes in cash and cash equivalent 25,977 19,270 10,587
Cash balance at the beginning of 10,587 - -
the period
______ ______ ______
Cash balance at the end of the period 36,564 19,270 10,587
===== ====== ======
The notes form part of these financial statements.
Life Settlement Assets Plc
Notes to the Condensed Financial Statements
for the six months ended 30 June 2019
Note 1 General information
Life Settlement Assets ("Life Settlement Assets" or the
"Company") is a public company limited by shares and an investment
company under section 833 of the Companies Act 2006. It was
incorporated in England and Wales on 16 August 2017 with a
registration number of 10918785. The registered office of the
Company is 115 Park Street, 4th Floor, London W1K 7AP.
The principal activity of Life Settlement Assets is to manage
investments in whole and partial interests in life settlement
policies issued by life insurance companies operating predominantly
in the United States.
In May 2018, the Company received confirmation from HM Revenue
& Customs of its approval as an investment trust for tax
accounting periods commencing on or after 26 March 2018, subject to
the Company continuing to meet the eligibility conditions contained
in section 1158 of the Corporation Tax Act 2010 and the ongoing
requirements in Chapter 3 of Part 2 of the Investment Trust
(Approved Company) (Tax) Regulations 2011(Statutory Instrument
2011/2999).
The Company currently has four classes of Ordinary Shares in
issue, namely A, B, D and E, each of which principally participates
in a separate portfolio of life settlement assets and associated
liabilities, which were acquired from Acheron Portfolio Corporation
(Luxembourg) SA ("APC" or the "Predecessor Company") on 26 March
2018.
Note 2 IFRS accounting policies
2.1 Basis of preparation
These condensed interim financial statements have been prepared
using the same accounting policies and methods of computation as in
the 2018 annual financial statements, except for those that relate
to new standards and interpretations effective for the first time
for periods beginning on (or after) 1 January 2019 and will be
adopted in the 2019 annual financial statements. New standards and
amendments to existing standards that will be adopted in the annual
financial statements for the year ended 31 December 2019 are:
- IFRS 16 Leases
- Annual improvements to IFRS Standards 2015-2017 Cycle.
These new and amended standards issued by the IASB that will
apply for the first time in the next annual financial statements
are not expected to impact the company as they are not relevant to
the company's activities or require accounting which is not
consistent with the company's current accounting policies.
Financial information for the period ended 30 June 2018 has been
reclassified in line with classifications used in the financial
statements for the year ended 31 December 2018.
As at 30 June 2019, the Company no longer has any subsidiaries:
two of the subsidiaries were liquidated in 2018 and the remaining
subsidiary in May 2019, none of them had any active operations.
Therefore, the Company has elected not to prepare consolidated
financial statements for the year ended 31 December 2019 and the
comparative information has been restated to show the standalone
Company financial statements.
The condensed financial statements, which comprise the unaudited
results of the Company have been prepared in accordance with
International Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB"), as adopted by
the European Union. They have also been prepared in accordance with
the SORP for investment companies issued by the AIC in November
2014 and updated in February 2018 with consequential amendments,
except to the extent that it conflicts with IFRS. The accounting
policies are as set out in the Report and Accounts for the period
ended 31 December 2018.
The half-year financial statements have been prepared in
accordance with IAS 34 "Interim Financial Reporting".
The financial information contained in this Half-Yearly
financial report does not constitute statutory accounts as defined
by the Companies Act 2006.The financial information for the periods
ended 30 June 2019 and 30 June 2018 have not been audited or
reviewed by the Company's Auditor. The figures and financial
information for the year ended 31 December 2018 are an extract from
the latest published audited statements and do not constitute the
statutory accounts for that year. Those accounts have been
delivered to the Registrar of Companies and include a report of the
Auditor, which was unqualified and did not contain a statement
under either Section 498(2) or 498(3) of the Companies Act
2006.
2.2 Changes in accounting policy and disclosures
Standards and amendments to existing standards that are not yet
effective and have not been early adopted by the Company
The following new standards and amendments have been published
but are not effective for the company's accounting period beginning
on 1 January 2019. The Directors do not expect the adoption of the
following new standards, amended standards or interpretations to
have a significant impact on the financial statements of the Group
in future periods.
IFRS 17 "Insurance contracts" applies to insurance contracts,
including reinsurance contracts issued by an entity; reinsurance
contracts held by an entity; and investment contracts with
discretionary participation features issued by an entity that
issues insurance contracts. IFRS 17 will be effective for reporting
periods beginning on or after 1 January 2021. It is expected that
IFRS 17 will have no impact on the Company's financial
statements.
Amendments to References to the Conceptual Framework in IFRS
Standards, to IFRS 3 Business Combinations, to IAS 1 and IAS 8:
Definition of Material will be effective for reporting periods
beginning on or after 1 January 2020. It is expected these
amendments will have no impact on the Company's financial
statements.
Going concern
The Directors have made an assessment of the Company's ability
to continue as a going concern and are satisfied that the Company
has adequate resources to continue in operational existence for the
foreseeable future (being a period of 12 months from the date these
financial statements were approved). Furthermore, the Directors are
not aware of any material uncertainties that may cast significant
doubt upon the Company's ability to continue as a going concern,
having taken into account the liquidity of the Company's investment
portfolio and the Company's financial position in respect of its
cash flows, liabilities from its assets and the ongoing charges,
including annual premiums which are approximately 17% of assets.
Therefore, the financial statements have been prepared on the going
concern basis and on the basis that approval as an investment trust
will continue to be met.
Note 3 Gains/(losses) from life settlement portfolios
30 June 30 June 31 December
2019 2018 2018
USD'000 USD'000 USD'000
Realised gains:
* Maturities 33,948 12,851 33,371
* Acquisition cost of maturities (6,323) (2,564) (11,362)
______ ______ ______
Sub total 27,625 10,287 22,009
Incurred premiums (10,966) (11,285) (23,332)
Unrealised (losses)/gains:
* Fair value adjustments (1,055) 273 2,662
______ ______ ______
15,604 (725) 1,339
====== ====== ======
When a maturity is declared, a realised capital income or loss
is recognised on the investment in the policy, calculated by
deducting from the value of the maturity the acquisition cost.
The amount of premiums incurred during the period is reflected
as a deduction of income from life settlement portfolios. The
amount of premiums paid in advance amounted to USD'000 11,089 as at
30 June 2019 (30 June 2018: USD'000 12,887 and 31 December 2018:
USD'000 13,328).
Note 4 Management fees and performance fees
30 June 30 June 31 December
2019 2018 2018
USD'000 USD'000 USD'000
Acheron Capital management
fees 978 1,078 2,101
Performance fees 2,066 (324) (75)
______ _____ _____
3,044 754 2,026
===== ===== =====
Under an agreement dated 26 March 2018, the Investment Manager
is entitled to a management fee payable by the Trusts at an annual
rate of no more than 1.5% of the Net Asset Value for classes A, B
and D, and 2% for class E.
The Performance fee in respect of the Trusts shall be an amount
equal to 25% of the sum of the distributions made to the holders of
the Shares in the Company corresponding to the Trusts, in excess of
the Performance Hurdle (assessed at the time of each
distribution).
The "Performance Hurdle" is met when (from time to time) the
aggregate distributions (in excess of the Catch-Up Amount) made to
the holders of the corresponding Ordinary Shares compounded at 3%
per annum for classes A and B, and 5% for classes D and E (from the
date of each distribution) equal the aggregate investment made by
the Ordinary Shares in the Company (from time to time) compounded
at 3% and 5% respectively.
Note 5 Taxation
The Company has an effective UK tax rate of 0% for the year
ending 31 December 2019. The estimated effective tax rate is 0% as
investment gains are exempt from tax owing to the Company's status
as an investment trust and there is expected to be an excess of
management expenses over taxable income.
Withholding tax on matured policies
In accordance with the taxation treaty between the United States
of America and the United Kingdom, withholding tax on matured
policies is not due if at least 6% of the average capital stock of
the main class of Shares is traded during the previous year on a
recognised stock exchange. The Board believes that in the period
ended 31 December 2018 the Company fulfilled this requirement.
The company is liable for US income tax on financial income
(mainly dividends) received from policies at the time of maturity.
The tax charge for the period amounted to USD'000 70.
Note 6 Return per share
As stated in Note 9, the share capital of the Company comprises
71,068,874 shares represented by 45,446,946 A Shares, 14,596,098 B
Shares, 9,292,561 D Shares, and 1,733,269 E Shares. All Shares are
fully paid. Neither unpaid shares nor any kind of option are
outstanding, so the basic profit/(loss) per share is also the
diluted profit/(loss) per share.
As the different classes of Shares have specific rights in
relation to their investments, the net profit/(loss) per share is
given for each Share Class:
Six months ended 30 Class A Class B Class D Class E
June 2019
Earnings per share:
Revenue return (USD'000) (3,207) (349) (391) (276)
Capital return (USD'000) 11,243 (899) 1,757 1,366
Total Return (USD'000) 8,036 (1,248) 1,366 1,090
Weighted average number
of shares the year 45,446,946 14,596,098 9,292,561 1,733,269
Income return per share
(USD) (0.070) (0.024) (0.042) (0.160)
Capital return per share
(USD) 0.247 (0.062) 0.189 0.788
Basic and diluted total
earnings per share (USD) 0.177 (0.086) 0.147 0.628
Period ended 30 June Class A Class B Class D Class E
2018
Earnings per share:
Revenue return (USD'000) (3,346) (401) (451) (301)
Capital return (USD'000) 141 (275) (467) 200
Total Return (USD'000) (3,205) (676) (918) (101)
Weighted average number
of shares the year 45,446,946 14,596,098 9,292,561 1,733,269
Income return per share
(USD) (0.074) (0.028) (0.049) (0.174)
Capital return per share
(USD) 0.003 (0.019) (0.050) 0.116
Basic and diluted total
earnings per share (USD) (0.071) (0.047) (0.099) (0.058)
Period ended 31 December Class A Class B Class D Class E
2018
Earnings per share:
Revenue return (USD'000) (5,700) (658) (674) (469)
Capital return (USD'000) 1,889 (1,797) 604 718
Total Return (USD'000) (3,811) (2,455) (70) 249
Weighted average number
of shares the year 45,446,946 14,596,098 9,292,561 1,733,269
Income return per share
(USD) (0.125) (0.045) (0.073) (0.270)
Capital return per share
(USD) 0.041 (0.123) 0.065 0.414
Basic and diluted total
earnings per share (USD) (0.084) (0.168) (0.008) 0.144
Note 7 Financial instruments measured at fair value
The life settlement portfolios have been classified as financial
assets held at fair value through profit or loss as their
performance is evaluated on a fair value basis.
The fair value hierarchy set out in IFRS 13 groups financial
assets and liabilities into three levels based on the significant
inputs used in measuring the fair value of the financial assets and
liabilities.
The fair value hierarchy has the following levels:
- level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
- level 2: inputs other than quoted prices included within Level
1 that are observable for the assets or liabilities, either
directly (i.e. as prices) or indirectly (i.e. derived from prices);
and
- level 3: inputs for the assets or liabilities that are not
based on observable market data (unobservable inputs).
The life settlement portfolios of USD'000 83,798 (30 June 2018:
USD'000 95,170 and 31 December 2018: USD'000 89,813) are all
classified as level 3.
At 31 December 2018, the portfolios were valued by an external
actuary, Lewis & Ellis (L&E), based on an actuarial model.
Using these values, Acheron Capital Ltd (the Investment manager of
the trusts in which the policies of Class A, B, D and E are kept)
resets its internal model at the beginning of each year, if
necessary, and produces regular monthly valuations using its
internal model.
Note 8 Financial assets held at fair value through profit or
loss: Life Settlement Portfolios
Movements for the period are as follows:
As at 30 As at 30 As at 31
June June December
2019 2018 2018
USD'000 USD'000 USD'000
Opening valuation 89,813 97,008 97,008
Acquisitions during the period 1,077 298 1,272
Proceeds from matured policies (33,948) (12,851) (33,371)
Net realised gains on policies 27,625 10,287 22,009
Movements in cash from policy
loans 286 155 233
Movements in unrealised valuation (1,055) 273 2,662
_______ _______ ______
Closing valuation 83,798 95,170 89,813
======= ======= ======
Details at period end: USD'000 USD'000 USD'000
Acquisition value 104,169 117,240 109,415
Unrealised capital gains 1,607 273 2,662
Policy loans (21,978) (22,343) (22,264)
_______ _______ _______
Closing valuation 83,798 95,170 89,813
====== ======= =======
Distribution of the portfolio as at 30 June 2019 by class of
Shares and by type of risk:
Class A Class Class Class Total
B D E
USD'000 USD'000 USD'000 USD'000 USD'000
Elderly life insurance
(non-HIV) portfolio 20,715 9,832 5,200 2,757 38,504
HIV portfolio 41,773 - 2,484 1,037 45,294
(_________) (_________) (_____________) (_________) (________)
Balance as at
30 June 2019 62,488 9,832 7,684 3,794 83,798
====== ===== ========= ===== =====
Fair market value reflects the view of Acheron Capital Ltd, the
Investment Manager of the trusts in which the policies of Class A,
B, D and E are kept.
Distribution of the portfolio as at 30 June 2018 by class of
Shares and by type of risk:
Class A Class Class Class Total
B D E
USD'000 USD'000 USD'000 USD'000 USD'000
Elderly life insurance
(non-HIV) portfolio 25,464 12,820 7,353 4,502 50,139
HIV portfolio 41,745 - 2,339 947 45,031
(______________) (_____________) (_____________) (_____________) (______________)
Balance as at
30 June 2018 67,209 12,820 9,692 5,449 95,170
========= ======== ========= ========== =========
Distribution of the portfolio as at 31 December 2018 by class of
Shares and by type of risk:
Class A Class Class Class Total
B D E
USD'000 USD'000 USD'000 USD'000 USD'000
Elderly life insurance
(non-HIV) portfolio 23,889 10,645 7,092 3,722 45,348
HIV portfolio 41,204 - 2,232 1,029 44,465
(______________) (_____________) (_____________) (_____________) (______________)
Balance as at
31 December 2018 65,093 10,645 9,324 4,751 89,813
========= ======== ========= ========== =========
Note 9 Share Capital
At the 30 June 2019 (30 June 2018 and 31 December 2018) the
Company's share capital amounts to USD 710,689 and is represented
by 71,068,874 ordinary shares of USD 0.01 each.
The issued and fully paid share capital is comprised of
45,446,946 Class A shares, 14,596,098 Class B shares, 9,292,561
Class D shares, and 1,733,269 Class E shares.
Class A, Class B, Class D and Class E shares relate to specific
investments determined by the Board of Directors or as the case may
be, by a general meeting of Shareholders. Each investment is
undertaken for the exclusive benefit and risk of the relevant class
of shares. All shares have equal voting rights.
Note 10 Special reserve
The Special reserve was created as a result of the cancellation
of the Share premium account following a court order issued on 18
June 2019. The Special reserve is distributable and may be used to
fund purchases of the Company's own shares and to make
distributions to Shareholders.
Note 11 Net assets and net asset value per class of shares
The net asset value (NAV) as at 30 June 2019 for each class of
Shares are shown below.
Class Class B Class Class E Total
A D
Net assets (USD'000) 99,687 14,901 12,957 9,336 136,881
Number of shares 45,446,946 14,596,098 9,292,561 1,733,269 71,068,874
NAV per share (USD) 2.1935 1.0209 1.3944 5.3863
The net asset value (NAV) as at 30 June 2018 for each class of
Shares are shown below.
Class A Class B Class D Class Total
E
Net assets (USD'000) 92,256 17,929 10,743 7,896 128,824
Number of shares 45,446,946 14,596,098 9,292,561 1,733,269 71,068,874
NAV per share
(USD) 2.0300 1.2283 1.1560 4.5559
The net asset value (NAV) as at 31 December 2018 for each class
of Shares are shown below.
Class A Class B Class D Class Total
E
Net assets (USD'000) 91,649 16,150 11,591 8,247 127,637
Number of shares 45,446,946 14,596,098 9,292,561 1,733,269 71,068,874
NAV per share
(USD) 2.0166 1.1065 1.2473 4.7580
Note 12 Related party transactions
Related parties to the Company are the members of the Board of
Directors of the Company, Compagnie Européenne de Révision S.à r.l.
as Administrator who has a member on the Board of Directors and the
Trustee of the US trusts who is also a member of the Board of
Directors.
USD'000
Per income statement:
Trustee fees 86
Compagnie Européenne de Révision
S.Ã r.l. 191
Directors' fees 76
Amounts payable per balance sheet:
Compagnie Européenne de Révision
S.Ã r.l. 120
Directors' fees 65
=====
Shares held by related parties (Directors
and companies under their control)-
Jean Medernach 50,000
All transactions with related parties are undertaken at arm's
length.
Note 13 Post balance sheet events
On 3 July 2019, the Company completed a tender offer for
5,555,555 A Ordinary Shares at a price of USD 1.80 per share. Total
consideration amounted to USD 9,999,999. The shares have
subsequently been cancelled. Following completion of the Tender
Offer, the Company had 39,891,391 A Ordinary Shares, 14,596,098 B
Ordinary Shares, 9,292,561 D Ordinary Shares and 1,733,269 E
Ordinary Shares.
On 10 July 2019, the Company has received notification of a
number of maturities including the most significant outstanding
policy at that time. The face value of this policy amounts to USD
10,160,466 for the benefit of the A Share Class, USD 776,018 for
the benefit of the B Share Class, USD 2,168,074 for the benefit of
the D Share Class and USD 1,982,432 for the benefit of the E Share
Class.
On 19 July 2019, the Company paid a special dividend out of the
special distributable reserve created by the cancellation of the
share premium account of US Cents 5.50 for A Ordinary Shares, US
Cents 37.66 for D Ordinary Shares and US Cents 259.62 for E
Ordinary Shares. Total consideration amounted to USD 2,500,000 for
A Ordinary Shares, USD 3,500,000 for D Ordinary Shares and USD
4,500,000 for E Ordinary Shares.
On 6 August 2019 the Company announced a share buyback programme
of USD 500,000 for each of the D and E Ordinary Shares. As at the
date of this report, 500,000 D Ordinary Shares and 166,666 E
Ordinary shares have been bought back. The shares will subsequently
be cancelled. Following the buybacks, the Company's share capital
as at the date of this report was 64,846,653 comprising 39,891,391
A Ordinary Shares, 14,596,098 B Ordinary Shares, 8,792,561 D
Ordinary Shares and 1,566,603 E Ordinary Shares.
ADDITIONAL INFORMATION
Additional information of exhibits I to IV do not form part of
the condensed financial statements.
EXHIBIT I (unaudited)
Life Settlement Assets Plc
Class A Shares
Statement of Comprehensive Income for the six months ended 30
June 2019
Six months Period Period ended
ended ended 31 December
30 June 2019 30 June 2018 2018
(unaudited) (unaudited) (audited)
USD'000 USD'000 USD'000
Income
Income from life settlement
portfolios 372 262 515
Gains from life settlement
portfolios 12,800 141 1,890
Other income 47 59 68
Net foreign exchange
loss (12) (52) (26)
______ ______ ______
Total income 13,207 410 2,447
Operating expenses
Investment management
fees (2,174) (726) (1,441)
Other expenses (2,295) (2,269) (3,538)
______ ______ ______
Profit/(loss) before
finance costs and
taxation 8,738 (2,585) (2,532)
Finance costs
Interest payable (632) (620) (1,279)
______ ______ ______
Profit/(loss) before
taxation 8,106 (3,205) (3,811)
Taxation (70) - -
______ ______ ______
Profit/(loss) for
the period 8,036 (3,205) (3,811)
====== ====== ======
EXHIBIT I (unaudited)
Life Settlement Assets Plc
Class A Shares
Statement of Financial Position
as at 30 June 2019
As at As at As at 31
December
2018
30 June 30 June (audited)
2019 2018 USD'000
(unaudited) (unaudited)
USD'000 USD'000
ASSETS
Non-current assets
Financial assets at
fair value through profit
or loss:
- Life settlement investments 62,488 67,209 65,093
- Shares in subsidiary - 61,329 -
______ ______ ______
62,488 128,538 65,093
Current assets
Maturities receivables 8,099 3,810 10,508
Trade and other receivables 702 599 644
Premiums paid in advance 7,359 8,107 9,402
Cash and cash equivalents 23,263 12,814 7,085
Inter-class receivables 842 1,708 234
______ ______ ______
40,265 27,038 27,873
______ ______ ______
Total Assets 102,753 155,576 92,966
Current liabilities
Other payables (1,580) (1,991) (1,317)
Provision for performance (1,486) - -
fees
Liabilities to subsidiary - (61,329) -
______ ______ ______
(3,066) (63,320) (1,317)
______ ______ ______
Net Assets 99,687 92,256 91,649
====== ====== ======
Capital and reserves
Share capital 455 455 455
Share premium - 95,006 95,006
Special reserve 95,006 - -
Capital reserve 13,132 141 1,889
Revenue reserve (8,906) (3,346) (5,701)
______ ______ ______
Total equity attributable 99,687 92,256 91,649
to ordinary shareholders ====== ====== ======
EXHIBIT II (unaudited)
Life Settlement Assets Plc
Class B Shares
Statement of Comprehensive Income for the six months ended 30
June 2019
Six months Period Period ended
ended ended 31 December
30 June 2019 30 June 2018 2018
(unaudited) (unaudited) (audited)
USD'000 USD'000 USD'000
Income
Income from life settlement
portfolios 19 1 9
Loss from life settlement
portfolios (899) (275) (1,797)
Other income 8 8 23
Net foreign exchange -
loss - -
______ _____ ______
Total income (872) (266) (1,765)
Operating expenses
Investment management
fees (121) (139) (279)
Other expenses (253) (268) (407)
______ _____ ______
Loss before finance
costs and taxation (1,246) (673) (2,451)
Finance costs
Interest payable (2) (3) (4)
______ _____ ______
Loss before taxation (1,248) (676) (2,455)
Taxation - - -
______ _____ ______
Loss for the period (1,248) (676) (2,455)
===== ==== =====
EXHIBIT II (unaudited)
Life Settlement Assets Plc
Class B Shares
Statement of Financial Position
as at 30 June 2019
As at As at 30 As at 31
June December
2018
30 June 2018 (audited)
2019
(unaudited) (unaudited) USD'000
USD'000 USD'000
ASSETS
Non-current assets
Financial assets at fair
value through profit or
loss:
Life settlement investments 9,832 12,820 10,645
Shares in subsidiary - 17,627 17,632
______ _______ _______
9,832 30,447 28,277
Current assets
Maturities receivables 1,169 558 2,819
Trade and other receivables 114 10 93
Premiums paid in advance 1,828 2,005 1,469
Cash and cash equivalents 2,781 3,582 1,510
Inter class receivables - - -
______ _______ _______
5,892 6,155 5,891
______ _______ _______
Total Assets 15,724 36,602 34,168
Current liabilities
Other payables (482) (585) (263)
Provision for performance - - -
fees
Liabilities to subsidiary - (17,627) (17,632)
Inter class payables (341) (461) (123)
______ _______ _______
(823) (18,673) (18,018)
______ _______ _______
Net Assets 14,901 17,929 16,150
===== ====== ======
Capital and reserves
Share capital 146 146 146
Share premium - 18,459 18,459
Special reserve 18,459 - -
Capital reserve (2,696) (275) (1,797)
Revenue reserve (1,008) (401) (658)
______ _______ _______
Total equity attributable 14,901 17,929 16,150
to ordinary shareholders ====== ====== ======
EXHIBIT III (unaudited)
Life Settlement Assets Plc
Class D Shares
Statement of Comprehensive Income for the six months ended 30
June 2019
Six months Period Period ended
ended ended 31 December
30 June 2019 30 June 2018 2018
(unaudited) (unaudited) (audited
USD'000 USD'000 USD'000
Income
Income from life settlement
portfolios 23 8 20
Gains/(losses) from
life settlement portfolios 2,093 (733) 526
Other income 10 8 23
Net foreign exchange -
loss - -
______ _____ _____
Total income 2,126 (717) 569
Operating expenses
Investment management
fees (423) 151 (125)
Other expenses (334) (347) (506)
_____ ____ _____
Profit/(loss) before
finance costs and taxation 1,369 (913) (62)
Finance costs
Interest payable (3) (5) (8)
_____ _____ ______
Profit/(loss) before
taxation 1,366 (918) (70)
Taxation - - -
_____ _____ ____
Profit/(loss) for the
period 1,366 (918) (70)
==== ==== ====
EXHIBIT III (unaudited)
Life Settlement Assets Plc
Class D Shares
Statement of Financial Position
as at 30 June 2019
As at As at As at 31
December
2018
30 June 30 June (audited)
2019 2018 USD'000
(unaudited) (unaudited)
USD'000 USD'000
ASSETS
Non-current assets
Financial assets at fair
value through profit or
loss:
Life settlement investments 7,684 9,692 9,324
Shares in subsidiary - 7,600 7,600
_____ _____ ______
7,684 17,292 16,924
Current assets
Maturities receivables 2,037 564 2,328
Trade and other receivables 113 10 91
Premiums paid in advance 1,294 1,714 1,298
Cash and cash equivalents 4,521 1,151 704
_____ _____ _____
7,965 3,439 4,421
______ ______ ______
Total Assets 15,649 20,731 21,345
Current liabilities
Other payables (200) (288) (208)
Provision for performance
fees (2,220) (1,696) (1,884)
Liabilities to subsidiary - (7,600) (7,600)
Inter-class payables (272) (404) (62)
______ ______ ______
(2,692) (9,988) (9,754)
______ ______ ______
Net Assets 12,957 10,743 11,591
===== ===== =====
Capital and reserves
Share capital 93 93 93
Share premium - 11,568 11,568
Special reserve 11,568 - -
Capital reserve 2,361 (467) 604
Revenue reserve (1,065) (451) (674)
______ ______ ______
Total equity attributable 12,957 10,743 11,591
to ordinary shareholders ===== ===== =====
EXHIBIT IV (unaudited)
Life Settlement Assets Plc
Class E Shares
Statement of Comprehensive Income for the six months ended 30
June 2019
Six months Period Period ended
ended ended 31 December
30 June 2019 30 June 2018 2018
(unaudited) (unaudited) (audited
USD'000 USD'000 USD'000
Income
Income from life settlement
portfolios 21 4 22
Gains from life settlement
portfolios 1,610 142 720
Other income 9 3 19
Net foreign exchange loss - - (1)
_____ ____ ____
Total income 1,640 149 760
Operating expenses
Investment management fees (326) (40) (181)
Other expenses (222) (206) (325)
_____ ____ _____
Profit/(loss) before finance
costs
and taxation 1,092 (97) 254
Finance costs
Interest payable (2) (4) (5)
_______ ____ _____
Profit/(loss)before taxation 1,090 (101) 249
Taxation - - -
_____ ____ _____
Profit/(loss)for the period 1,090 (101) 249
==== ==== ====
EXHIBIT IV (unaudited)
Life Settlement Assets Plc
Class E
Statement of Financial Position
as at 30 June 2019
As at As at 30 As at
30 June June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
USD'000
USD'000 USD'000
ASSETS
Non-current assets
Financial assets at fair value
through profit or loss:
Life settlement investments 3,794 5,449 4,751
Shares in subsidiary - 6,070 -
______ ______ ______
3,794 11,519 4,751
Current assets
Maturities receivables 404 1,631 2,142
Trade and other receivables 131 10 112
Premiums paid in advance 608 1,061 1,159
Cash and cash equivalents 5,999 1,723 1,288
______ ______ ______
7,142 4,425 4,701
______ ______ ______
Total Assets 10,936 15,944 9,452
Current liabilities
Other payables (198) (255) (227)
Provision for performance
fees (1,173) (868) (929)
Liabilities to subsidiary - (6,070) -
Inter-class payables (229) (855) (49)
______ ______ ______
(1,600) (8,048) (1,205)
______ ______ ______
Net Assets 9,336 7,896 8,247
===== ===== =====
Capital and reserves
Share capital 17 17 17
Share premium - 7,980 7,980
Special reserve 7,980 - -
Capital reserve 2,085 200 718
Revenue reserve (746) (301) (468)
_____ _____ _____
Total equity attributable 9,336 7,896 8,247
to ordinary shareholders ===== ===== =====
SHAREHOLDER INFORMATION
Directors
Jean Medernach
Michael Baines
Robert Edelstein
Franck Mathé
Yves Metz
Guner Turkman
Registered Office
115 Park Street
4th Floor
London W1K 7AP
Auditors
Grant Thornton UK LLP
30 Finsbury Square
London
EC2P 2YU
Trusts' Investment Manager
Acheron Capital Limited
115 Park Street
4th Floor
London W1K 7AP
Share Registrars
Link Asset Services
34 Beckenham Road
Beckenham
Kent BR3 4ZF
Brokers
Shore Capital
100 Wood Street
London
EC2V 7AN
Company Secretary
Maitland Administration Services Limited
Hamilton Centre
Rodney Way
Chelmsford
CM1 3BY
Email: cosec@maitlandgroup.co.uk
Telephone: 01245 398984
Website - https://www.lsaplc.com
Registered in England and Wales with Company Registration
number: 10918785
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR UNRVRKRAKUAR
(END) Dow Jones Newswires
September 27, 2019 02:00 ET (06:00 GMT)
Life Settlement Assets (LSE:LSAA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Life Settlement Assets (LSE:LSAA)
Historical Stock Chart
From Apr 2023 to Apr 2024