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RNS Number : 3505X
UIL Limited
21 February 2017
Date: 21 February 2017
Contact: Charles Jillings
ICM Investment Management Limited
01372 271 486
UIL LIMITED
UNAUDITED STATEMENT OF RESULTS
FOR THE SIX MONTHS TO 31 DECEMBER 2016
FINANCIAL HIGHLIGHTS
-- Revenue return per ordinary share 2.76p (2.91p)
-- Capital return per ordinary share 20.69p (-11.21p)
-- Total return per ordinary share 23.45p (-8.30p)
-- Dividends per ordinary share 3.75p (3.75p)
-- Annualised dividend yield 5.2% (7.0%)
Figures in brackets are 31 December 2015
CHAIRMAN'S STATEMENT
I am pleased to report UIL achieved a positive NAV total return
of 9.9% in the six months to 31 December 2016. The FTSE All Share
Total Return Index was also positive at 12.0%. Since inception UIL
has delivered a 229.2% NAV growth versus the FTSE's 198.5%,
resulting in a compound annual growth rate of 10.2%.
Over the last few years we have been highlighting the rising
volatility as the world's major economies diverged. Over the last
six months this divergence has continued apace, with the US Federal
Bank announcing a 25 basis point increase on 14 December 2016,
whilst Europe and Japan continue to pursue quantitative easing
("QE"). These divergences have continued to produce significant
economic dislocations which are being exacerbated by a rising
global move towards political populism. This combination of factors
has seen volatility and price movements across most asset classes
and currencies and some surprising outcomes, in particular the
Brexit vote in the UK and the election of Donald Trump as US
President. The financial global dynamic also continues to be
challenged by the emergence of disruptive businesses, with a number
of them dominating their markets.
All the above has seen a rise in uncertainties and this is
likely to accelerate as new political policies are implemented and
new relationships formed. While our Investment Managers are bottom
up investors and still see significant opportunities, their
decisions are made more challenging in this environment.
We have seen the US Dollar strengthen by 7.9% against Sterling
in the six months to 31 December 2016, with Sterling ending the
year near all-time lows against the US Dollar. Oil continues to
recover from its lows of last year, rising by 14.4% to end the year
at US$56.82 per barrel. Gold declined by 12.9% to US$1,152.27/oz.
Iron ore and nickel were up by 41.7% and 6.0% respectively.
For UIL it has meant continued positives within its US Dollar
based investments and its commodities and energy market
investments. The overall result was a positive outcome with the
investment portfolio gaining GBP35.0m over the six months. However,
UIL's FX hedges and derivatives position gave rise to losses of
GBP9.0m, reducing the capital account income gains to GBP25.2m.
UIL's NAV rose by over 100.00p to 352.50p in September but fell
back to 261.14p as at 31 December 2016.
On 31 October 2016, UIL redeemed all the outstanding 2016 ZDP
shares. UIL has continued to sell the remaining 2020 and 2022 ZDP
shares it holds in the market. Over the six months UIL bought back
0.4m shares. However, UIL will not buy back any further shares
until the Scotiabank bridge facility is repaid.
The profit on the revenue account in the half year was GBP2.5m
(31 December 2015: GBP2.7m). The Board has maintained the quarterly
dividends of 1.875p per ordinary share, with the second quarterly
dividend to be paid on 22 March 2017.
OUTLOOK
The divergence of the world's major economies will inevitably
lead to higher market volatility and more price movements. Add to
that significant changes in trading relationships and rising
populism and we can expect continuing volatility. While the world's
GDP continues to be positive and may even improve, we must note the
world's debt levels continue to rise. The next six months will be
challenging. UIL's stock selection focus and portfolio mix should
enable UIL and its platforms to identify niche growth investment
opportunities.
Peter Burrows
Chairman
21 February 2017
INVESTMENT MANAGERS' REPORT
UIL's NAV total return was 9.9% over the six months to 31
December 2016 and builds further on the significant gains made by
UIL last year. Over the last 18 months UIL's NAV has increased by
61.2%.
As noted in the Chairman's Statement, this has been a
challenging six months as volatility has continued to rise sharply
across most asset classes. We are currently in an investment world
where QE is a feature in Europe and Japan, interest rates are
rising in the US, most of the developed world's interest rates
remain under 2.0% and some one third of developed markets even have
negative borrowing rates. Populism continues to rise and was
responsible for both the Brexit vote in the UK and Donald Trump's
presidential win in the US. Both of these outcomes are essentially
challenges to existing world trading relationships. However, it
does appear that global GDP is firming and that infrastructure
investment will increase, which will be helpful, but we would note
borrowings are likely to continue to rise under this scenario and
political tensions are increasing. We are concerned that
"normalisation" of a number of the above features could increase
volatility in the wider markets.
Over the six months many currencies firmed against Sterling: the
US Dollar was up by 7.9%; the New Zealand Dollar up by 4.6%; and
the Australian Dollar up by 4.3%. The markets also strengthened
with the FTSE All Share up by 10.2%; the ASX up by 8.7%; the
S&P 500 up by 6.7%; and the NZX up by 5.0%.
For UIL this has produced pleasing rising asset values and NAVs.
However, Sterling's weakness has seen an increased need to meet
cash requirements arising from the significant FX positions carried
by UIL to hedge out borrowings. The year end position on 30 June
2016 saw a negative derivative position of GBP13.6m which needed
further cash investment on rolling. Over the past 18 months to 31
December 2016, the currency gains of GBP2.0m were partially offset
by the FX hedges.
Largely as a result of the FX demands, UIL drew down the
Scotiabank bridge facility of GBP25.0m as cash reserved for the ZDP
redemption was utilised to fund the FX hedges.
One of Zeta Resources Limited's ("Zeta") investments, New
Zealand Oil and Gas ("NZOG"), disposed of its investment in Kupe
for NZ$168m in cash and today is estimated to have over NZ$220m in
cash, thus enabling it to return significant cash to shareholders,
including to Zeta. As a result, UIL is anticipating that Zeta will
repay its loans in full before 30 June 2017.
Portfolio
There have been two divergent trends. UIL's two largest Fintech
investments have performed poorly, with Vix Technology and
Touchcorp Limited ("Touchcorp") down by 31.0% and 37.4%
respectively. Against this UIL's resource investments were up
significantly, with Zeta's shares up by 66.7% over the six months.
Overall gains on the investment portfolio were GBP35.0m, another
strong performance.
Major Platform Investments
The major platform investments continued to develop over the six
months to 31 December 2016.
Somers Limited ("Somers") is a financial services sector
investment holding company listed on the Bermuda Stock Exchange.
Somers' share price was unchanged at US$13.75 in the six months to
31 December 2016. During the period Somers completed the
acquisition of a majority shareholding in RESIMAC Limited
("RESIMAC") for US$88.5m. Subsequent to the acquisition, RESIMAC
merged with the ASX listed Homeloans Limited ("Homeloans"), which
has resulted in Somers becoming a 59.0% shareholder in Homeloans.
Homeloans is a leading non-bank lending and multi-channel
distribution business in Australia and New Zealand with a loan
portfolio in excess of A$8bn and an additional A$5bn under
administration. Its primary activities are originating, servicing
and securitising mortgage assets. Somers' other two significant
investments are Bermuda Commercial Bank Limited ("BCB") (one of
Bermuda's four licensed banks), which is a wholly owned investment
and a 62.5% interest in Waverton Investment Management Limited
("Waverton"), a UK private wealth manager with GBP5.0bn of assets
under management. For the year ended 30 September 2016 Somers
reported a net profit of US$32.3m on total equity of US$230.4m.
Somers' diluted NAV per share was US$18.66 as at 30 September 2016
(September 2015: US$17.74). The increase in NAV was despite a 14.2%
decrease in the value of Sterling against the US Dollar and was
driven primarily by an increased valuation of Waverton resulting
from strong financial results in 2016. UIL elected for a Somers
scrip dividend in lieu of cash and increased its holding in Somers
to 49.8% as at 31 December 2016. During the six months Somers
increased its borrowings from UIL by GBP6.2m to GBP11.5m. Somers
has risen to be UIL's largest investment holding at 16.6%.
Utilico Emerging Markets Limited ("UEM") invests in utility and
infrastructure assets in the emerging markets and is listed in the
UK and traded on the London Stock Exchange. Whilst there was
volatility in emerging markets during the period, on balance most
emerging markets' stock markets gained in value during the six
months to 31 December 2016. Similarly, the majority of major
emerging market currencies gained against Sterling, which continued
to weaken in response to the EU referendum result.
Brazil's recovery was notable, with a 16.9% rise in the Bovespa
Index over the six months to 31 December 2016 and its currency
gained in value by 6.3% versus Sterling. China's 6.7% GDP growth
was more resilient in 2016 than had been predicted earlier in the
year. There was however weakness in some markets, including the
Philippines, Malaysia and Mexico. The MSCI Emerging Markets Total
Return Index in Sterling terms increased by 13.6% over the six
months to 31 December 2016. UEM's total NAV return over the same
period was 5.6%. UIL realised some 2.8m shares in UEM over the
period, reducing its holding by 6.7% and realising GBP5.6m.
Zeta is a resource-focused investment company which is listed on
the Australian Stock Exchange. Over the six months to 31 December
2016 Zeta's share price rose by 66.7% to A$0.30.
During the six month period commodity prices were mixed. Oil
prices rose, with the Brent crude oil price up by 14.4% to US$56.82
per barrel. The gold price was down by 12.9% to US$1,152/oz and the
nickel price was up by 6.0%. While commodity prices were mixed,
Zeta's net assets per share rose by 46.8% during the period to
A$0.45 per share. Zeta's investment in NZOG benefited from a bid
for that company's biggest production asset at a cash price
exceeding NZOG's market capitalisation. Zeta's shares closed at
A$0.30 on 31 December 2016, representing a discount to net tangible
assets of 33.4%.
During the six months Zeta reduced its borrowings from UIL by
GBP2.8m to GBP22.5m.
Bermuda First Investment Company Limited ("BFIC") is an
investment company focused on Bermudan investments; its shares and
loan notes are listed on the Bermuda Stock Exchange. Its largest
investments are in KeyTech Limited ("KeyTech") (valued at BM$12.6m
as at 31 December 2016) and Ascendant (valued at US$9.5m as at 31
December 2016). BFIC's policy is to build strategic investments in
local Bermudan companies whilst working closely, where appropriate,
with the board and senior management of those companies to increase
the long term value of the investments and to encourage the
introduction of shareholder friendly initiatives. Both companies
are benefiting from an improvement in the Bermuda economy and the
prospects for 2017 are encouraging, when Bermuda will host the
America's Cup. As such these utility companies are investing
significantly in their respective networks in order to drive future
growth.
Infratil Limited's ("Infratil") share price declined by 14.1% in
the six months to 31 December 2016 in a period characterised by the
expansion of new investment platforms. Perhaps the most significant
development was the demerger of Trustpower into "new" Trustpower
and Tilt Renewables ("Tilt"). Under this revised structure,
Trustpower will continue to operate as a utilities retailer and
hydro generator whilst Tilt will focus on delivering the renewable
generation growth opportunity in Australia.
In the six months to 30 September 2016, Infratil's net parent
surplus from continuing operations was NZ$28.9m, compared with
NZ$28.3m in the prior year. Underlying EBITDAF recorded a small
decline of 2.8%. Core operations, including Trustpower, Wellington
Airport and NZ Bus, were broadly stable. UIL reduced its
shareholding in Infratil by 10.7%, realising some GBP2.7m.
MAJOR DIRECT HOLDINGS
Gold production by Resolute in the six months to 31 December
2016 was 170,558oz, up 7.6% on the same period in the prior year,
with head grades at Syama better than expected and Ravenswood
successfully transitioning to open pit mining. Production cash
costs during the period averaged A$934/oz. For the year to June
2017 Resolute has forecast production of 300,000oz at an all-in
sustaining cost of A$1,280/oz. Drilling at Nafolo has confirmed a
major new gold discovery at Syama, with intercepts showing
mineralisation with similar width, grade and characteristics to the
8m ounce Syama orebody.
In the six months to 31 December 2016, Resolute sold 94,080oz of
gold at an average price of A$1,784/oz, generating a gross
operating cash flow of A$122.2m. Cash and bullion on hand and
liquid investments were A$282m as at 31 December 2016 (2015:
A$75m); total borrowings were A$22m (2015: A$96m). During the
period Resolute has announced a resumption of dividends.
The share price of Resolute remained almost unchanged during the
six months to 31 December 2016, falling slightly from A$1.28 at the
end of June 2016 to A$1.27 at the end of December 2016. During the
six months UIL sold some 22.9m shares at an average share price of
A$1.75, reducing its holding by 18.1% and realising GBP25.6m.
Vix Technology is an unlisted company in which UIL has a 39.8%
holding. Vix Technology is a global leader in smart booking,
ticketing, payments, real-time information and data management
solutions for large-scale transport networks, working with over 200
customers worldwide. Vix Technology leverages more than 25 years of
industry experience designing, operating and maintaining proven
next-generation ticketing, payment and loyalty platforms to help
governments and businesses manage around five billion transactions
a year and create new ways to connect with their customers.
In the year to 30 June 2016, Vix Technology reported an increase
in revenue of 17.9% to US$126.1m, whilst EBITDA was down to
negative US$2.8m, as Vix Technology is currently implementing a
change in its strategy from being a business that was project
focused to being that of product focused. By doing so Vix
Technology is ensuring that in the medium term a core Software as a
Service ("SaaS") product which is scalable and flexible can be
quickly deployed, providing a greater return on investment capital.
Such a product will also ensure that Vix Technology is well placed
in the long term to be able to compete in the ever evolving highly
competitive market. The progress that Vix Technology has made so
far in executing its new strategy has been promising. During the
six months UIL lent Vix Technology GBP6.5m to fund its working
capital requirements as a result of its investment into its SaaS
product development.
Touchcorp Limited ("Touchcorp") is a provider of payment systems
facilitating the sale of non-physical items (such as mobile phone
top-ups, music and gaming vouchers, parking fees and bus tickets)
in convenience stores and online. The company has a 27.7% stake in
Afterpay, which is a rapidly growing credit product in Australia
that allows consumers to pay for purchases in instalments on an
interest-free basis. Afterpay is listed on the Australian Stock
Exchange and had a market cap of over A$450m as at 31 December
2016.
Touchcorp indicated that its revenues and operating profit for
the year to 31 December 2016 were expected to be significantly
below market expectations. This caused a significant correction in
the company's share price, which declined by 37.4% in the six
months to 31 December 2016.
Very sadly, Touchcorp's CEO, Adrian Cleeve passed away in
November. Adrian was the driving force behind Touchcorp's
development and growth. He will be missed by all who knew him.
Optal Limited ("Optal") is a developer of global payment systems
with a particular focus on the travel industry. The company owns a
23.5% stake in eNett, which owns a system that allows travel agents
to book hotels, flights and car hire using a Mastercard Virtual
Account created solely for that transaction. eNett continues to
grow rapidly, with revenues in the three months to September 2016
of US$113m, which was 72% higher than reported for the same period
in 2015.
Optal is looking to diversify into business payments in other
verticals.
Optal is an unlisted company and its shares, previously been
held by Vix Investments, were distributed to the shareholders of
Vix Investments.
Augean plc ("Augean") is a UK-based company providing specialist
waste management services across a variety of industries. Augean's
shares performed strongly in the six months to 31 December 2016,
rising by 19.6% over the period. In its interim results to 30 June
2016, total revenues increased by 17.6% and EBITDA increased by
15.1%, buoyed by higher landfill volumes.
The company's Energy & Construction business benefited from
a strong recovery in Air Pollution Control Residues volumes, which
rose by an impressive 44.9%. The high-margin nature of these
activities translated to equally impressive EBITDA growth for the
division, despite a more modest performance in hazardous waste.
Growth here more than offset weakness in Radioactive Waste
Services, where EBITDA has been eroded by contracting low-level
radioactive waste volumes and in North Sea Services, which continue
to be impacted by the challenging market backdrop.
PORTFOLIO ACTIVITY
During the six months to 31 December 2016 UIL invested GBP47.0m
and realised GBP60.3m, including GBP25.6m from its investments in
Resolute, GBP5.6m from its investments in UEM and GBP2.7m from its
investments in Infratil.
The geographical split, on a look-through basis, saw Australia
increase to 21.4% of the total investments (June 2016: 17.9%),
mainly as a result of the increased valuation of Zeta. In the
sector split, technology rose to 23.0% (June 2016: 21.0%), mainly
as a result of Sterling's weakness.
LEVEL 3 INVESTMENTS
UIL's investments in level 3 companies rose by GBP21.2m. This
was mainly due to three factors: increased lending to Vix
Technology to fund working capital as a result of its SaaS product
development; a GBP5.1m valuation increase in Optal; and new
investments of GBP5.6m.
Platform loans remained relatively flat at GBP35.0m, an increase
of 3.2%. The Somers loan increased by approximately GBP6.2m mainly
to fund investments made by Somers. This increase was offset by a
GBP2.8m repayment on the Zeta loan and repayment of GBP2.3m of the
loans to Vix Investments as part of the Optal distribution.
GEARING
Gearing has declined over the year to 31 December 2016 from
157.7% to 103.5%. Our medium term gearing target remains at
100.0%.
ZDP SHARES
The 2016 ZDP shares were redeemed in full on 31 October 2016. On
8 July 2016, UIL issued 14.0m 2020 ZDP shares and placed out 10.8m,
raising GBP13.8m. Since then, UIL has sold an additional 1.9m 2020
ZDP shares, with 1.3m being retained on UIL's balance sheet as at
31 December 2016 with a market value of GBP1.7m. In addition, UIL
sold 3.5m 2022 ZDP shares it held on its balance sheet raising
GBP3.8m and as at 31 December 2016 retained 5.5m 2022 ZDP shares
with a market value of GBP6.0m.
The average yield to maturity on the placings were 4.0% for the
2020 ZDP shares and 5.1% for the 2022 ZDP shares. UIL expects to
place the remaining 2020 and 2022 ZDP shares held before its
current year end.
DEBT
Bank debt rose from GBP24.7m as at 30 June 2016 to GBP75.0m as
at 31 December 2016, primarily to fund the 2016 ZDP share
redemption.
As at 31 December 2016 the Scotiabank facilities were fully
drawn down in Sterling. The term of the GBP50.0m loan facility with
Scotiabank is until 22 March 2018.
UIL drew down the Scotiabank bridging facility of GBP25.0m to
fund the 2016 ZDP redemption. UIL expects to repay the facility in
full before its financial year end.
DERIVATIVES
During the six months to 31 December 2016 there was minimal
investment in the S&P put option position, although there
continued to be significant currency hedges. As at 31 December 2016
these were A$185.5m, NZ$88.3m, US$65.1m and EUR22.5m. These
generated a loss on the capital account of GBP9.0m (December 2015:
loss of GBP4.8m).
REVENUE RETURN
Revenue total income rose by 4.8% from GBP4.5m to GBP4.8m.
Management and administration fees and other expenses increased
from GBP0.9m to GBP1.5m mainly as a result of higher asset values
and the management fee reverting to 0.5% (previously 0.25%).
Finance costs remained constant at GBP0.7m (December 2015:
GBP0.8m). The combined effect resulted in revenue profit decreasing
to GBP2.5m from GBP2.7m. EPS reduced to 2.76p from 2.91p.
CAPITAL RETURN
Capital total income was positive GBP25.2m (December 2015:
negative GBP4.0m). This represented gains on investments of
GBP35.0m, offset by derivative and FX losses of GBP9.8m. The
finance costs were GBP6.5m (December 2015: GBP6.3m).
The resultant profit for the six months to 31 December 2016 on
the capital return was GBP18.7m (December 2015: loss of GBP10.3m)
and the EPS gain was 20.69p (December 2015: loss of 11.21p).
EXPENSE RATIO
The ongoing charges figure, excluding performance fees, reduced
to 2.0% from 2.6%, mainly as a result of the average increase in
shareholders' funds.
ICM Investment Management Limited and ICM Limited
21 February 2017
HALF-YEARLY FINANCIAL REPORT AND RESPONSIBILITY STATEMENT
The Chairman's Statement and the Investment Managers' Report
give details of the important events which have occurred during the
period and their impact on the financial statements.
PRINCIPAL RISKS AND UNCERTAINTIES
Most of UIL's principal risks and uncertainties are market
related and are similar to those of other investment companies
investing mainly in listed equities in developed countries.
The principal risks and uncertainties were described in more
detail under the heading "Principal Risks and Risk Mitigation"
within the Business Review section of the Annual Report and
Accounts for the year ended 30 June 2016 and have not changed
materially since the date of that report.
The principal risks faced by UIL include not achieving long-term
total returns for its shareholders, the adverse impact gearing
could have, the sudden withdrawal of its bank facility, loss of key
management and losses due to inadequate controls of third party
service providers.
The Annual Report and Accounts is available on the Company's
website, www.uil.limited
RELATED PARTY TRANSACTIONS
Details of related party transactions in the six months to 31
December 2016 are set out in note 12 to the Report and Accounts and
details of the fees paid to the Investment Managers are set out in
note 2 to the Report and Accounts.
Directors' fees were increased with effect from 1 July 2016
to:
Chairman GBP43,000 per annum
Chair of Audit GBP41,000 per annum
Directors GBP31,800 per annum
DIRECTORS' RESPONSIBILITY STATEMENT
In accordance with Chapter 4 of the Disclosure Guidance and
Transparency Rules, the Directors confirm that to the best of their
knowledge:
-- The condensed set of financial statements contained within
the report for the six months to 31 December 2016 has been prepared
in accordance with International Accounting Standard 34 "Interim
Financial Reporting" and gives a true and fair view of the assets,
liabilities, financial position and return of the Group;
-- The half-yearly financial report, together with the
Chairman's Statement and Investment Managers' Report, includes a
fair review of the important events that have occurred during the
first six months of the financial year and their impact on the
financial statements as required by DTR 4.2.7R;
-- The Directors' statement of principal risks and uncertainties
above is a fair review of the principal risks and uncertainties for
the remainder of the year as required by DTR 4.2.7R; and
-- The half-yearly report includes a fair review of the related
party transactions that have taken place in the first six months of
the financial year as required by DTR 4.2.8R.
On behalf of the Board
Peter Burrows
Chairman
21 February 2017
UNAUDITED GROUP PERFORMANCE SUMMARY
Half-year Half-year Annual % change
31 Dec 31 Dec 30 Jun Jun-Dec
2016 2015 2016 2016
-------------------------------------------------- --------------- --------------- ------------- -----------------
NAV total return(1) (%) 9.9 (2.2) 47.1 n/a
Annual compound NAV total return
(since inception)(2) (%) 10.2 7.4 9.9 n/a
-------------------------------------------------- --------------- --------------- ------------- -----------------
NAV per ordinary share (pence) 261.14 161.48 241.12 8.3
Ordinary share price (pence) 143.50 107.50 130.75 9.8
Discount (%) 45.0 33.4 45.8 n/a
Ordinary annualised dividend yield (%) 5.2 7.0 5.7 (25.7)
FTSE All-Share Total Return Index 6,424 5,502 5,737 12.0
Zero dividend preference ("ZDP") shares(3)
(pence)
2016 ZDP shares
Capital entitlement per ZDP share n/a 181.85 188.31 n/a
ZDP share price n/a 189.25 191.00 n/a
2018 ZDP shares
Capital entitlement per ZDP share 141.18 131.65 136.32 3.6
ZDP share price 154.38 144.50 147.25 4.8
2020 ZDP shares
Capital entitlement per ZDP share 118.43 110.43 114.35 3.6
ZDP share price 133.50 124.13 130.00 2.7
2022 ZDP shares
Capital entitlement per ZDP share 103.20 n/a 100.12 3.1
ZDP share price 109.75 n/a 104.50 5.0
-------------------------------------------------- --------------- --------------- -----------------
Equity holders' funds (GBPm)
Gross assets(4) 471.6 377.2 440.7 7.0
Bank debt 75.0 52.1 24.7 203.6
ZDP shares 160.8 178.7 197.4 (18.5)
Equity holders' funds 235.8 146.4 218.6 7.9
Revenue account (GBPm)
Income 4.8 4.5 10.5 6.7(5)
Costs (management and other expenses) 1.5 0.9 1.9 66.7(5)
Finance costs 0.7 0.8 1.7 (12.5) 5)
-------------------------------------------------- --------------- --------------- ------------- -----------------
Financial ratios of the Group (%)
Revenue yield on average gross assets 2.2(6) 2.4(6) 2.9 n/a
Ongoing charges figure excluding performance
fees(7) 2.0(6) 2.6(6) 3.3 n/a
Ongoing charges figure including performance
fees(7) 2.8(6) 2.6(6) 3.3 n/a
Bank loans, net bank overdraft and
ZDP shares gearing on net assets 103.5 157.7 101.6 n/a
-------------------------------------------------- --------------- --------------- ------------- -----------------
Returns and dividends (pence)
Revenue return per ordinary share 2.76 2.91 6.23 (5.2) (5)
Capital return per ordinary share 20.69 (11.21) 68.45 (284.6) (5)
Total return per ordinary share 23.45 (8.30) 74.68 (382.5) (5)
Dividends per ordinary share 3.75 3.75 7.50 - (5)
-------------------------------------------------- --------------- --------------- ------------- ---------------
(1) Total return is calculated as change in NAV per ordinary
share, plus dividends reinvested
(2) Since inception includes data relating to Utilico Investment
Trust plc, UIL's predecessor, which started trading in August
2003
(3) Issued by UIL Finance Limited, a wholly owned subsidiary of
UIL
(4) Gross assets less current liabilities excluding loans and
ZDP shares
(5) Percentage change based on comparative six month period to
31 December 2015
(6) For comparative purposes the figures have been
annualised
(7) Expressed as a percentage of average net assets. Ongoing
charges comprise all operational, recurring costs that are payable
by the Group or
suffered within underlying investee funds, in the absence of any
purchases or sales of investments
UNAUDITED CONDENSED GROUP INCOME STATEMENT
for the six months to 31 December 2016 2015
Revenue Capital Total Revenue Capital Total
return return return return return return
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
-------------------------------------------- --------- --------- --------- --------- --------- ---------
Gains on investments - 35,006 35,006 - 3,223 3,223
Losses on derivative financial instruments - (8,999) (8,999) - (4,752) (4,752)
Foreign exchange (losses)/gains (66) (789) (855) 23 (2,446) (2,423)
Investment and other income 4,830 - 4,830 4,521 - 4,521
Total income 4,764 25,218 29,982 4,544 (3,975) 569
Management and administration fees (852) - (852) (417) - (417)
Other expenses (616) (2) (618) (480) (1) (481)
-------------------------------------------- --------- --------- --------- --------- --------- ---------
Profit/(loss) before finance costs and
taxation 3,296 25,216 28,512 3,647 (3,976) (329)
Finance costs (669) (6,507) (7,176) (842) (6,279) (7,121)
Profit/(loss) before taxation 2,627 18,709 21,336 2,805 (10,255) (7,450)
Taxation (129) - (129) (146) - (146)
-------------------------------------------- --------- --------- --------- --------- --------- ---------
Profit/(loss) for the period 2,498 18,709 21,207 2,659 (10,255) (7,596)
-------------------------------------------- --------- --------- --------- --------- --------- ---------
Earnings per ordinary share - pence 2.76 20.69 23.45 2.91 (11.21) (8.30)
-------------------------------------------- --------- --------- --------- --------- --------- ---------
The Group does not have any income or expense that is not
included in the profit/(loss) for the period, and therefore the
profit/(loss) for the period is also the total comprehensive
income/(expense) for the period, as defined in International
Accounting Standard 1 (revised).
All items in the above statement derive from continuing
operations.
All income is attributable to the equity holders of the Company.
There are no minority interests.
UNAUDITED CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
for the six months to 31 December 2016
Ordinary Share Non-
share premium Special distributable Capital Revenue
capital account reserve reserve reserves reserve Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
----------------------------- --------- --------- --------- -------------- --------- --------- ---------
Balance at 30 June 2016 9,065 20,031 233,866 32,069 (86,928) 10,482 218,585
Profit for the period - - - - 18,709 2,498 21,207
Ordinary dividends paid - - - - - (3,388) (3,388)
Shares purchased by the
Company (35) (563) - - - - (598)
Balance at 31 December 2016 9,030 19,468 233,866 32,069 (68,219) 9,592 235,806
----------------------------- --------- --------- --------- -------------- --------- --------- ---------
for the six months to 31 December 2015
Ordinary Share Non-
share premium Special distributable Capital Revenue
capital account reserve reserve reserves reserve Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
------------------------------ --------- ---------- --------- -------------- ---------- --------- ----------
Balance at 30 June 2015 9,856 28,414 233,866 32,069 (149,255) 11,608 166,558
(Loss)/profit for the period - - - - (10,255) 2,659 (7,596)
Ordinary dividends paid - - - - - (3,400) (3,400)
Shares purchased by the
Company (791) (8,384) - - - - (9,175)
Balance at 31 December 2015 9,065 20,030 233,866 32,069 (159,510) 10,867 146,387
------------------------------ --------- ---------- --------- -------------- ---------- --------- ----------
for the year to 30 June 2016
Ordinary Share Non-
share premium Special distributable Capital Revenue
capital account reserve reserve reserves reserve Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
-------------------------- --------- ---------- --------- -------------- ---------- --------- ----------
Balance at 30 June 2015 9,856 28,414 233,866 32,069 (149,255) 11,608 166,558
Profit for the year - - - - 62,327 5,673 68,000
Ordinary dividends paid - - - - - (6,799) (6,799)
Shares purchased by the
Company (791) (8,383) - - - - (9,174)
Balance at 30 June 2016 9,065 20,031 233,866 32,069 (86,928) 10,482 218,585
-------------------------- --------- ---------- --------- -------------- ---------- --------- ----------
UNAUDITED CONDENSED GROUP BALANCE SHEET
31 Dec 2016 31 Dec 2015 30 Jun 2016
GBP'000s GBP'000s GBP'000s
--------------------------------------- --------------- --------------- ---------------
Non-current assets
Investments 473,943 373,416 452,197
Current assets
Other receivables 646 1,836 2,945
Derivative financial instruments 6,094 366 1,067
Cash and cash equivalents 253 6,139 174
--------------------------------------- --------------- --------------- ---------------
6,993 8,341 4,186
--------------------------------------- --------------- --------------- ---------------
Current liabilities
Loans (25,000) (52,088) -
Other payables (9,247) (695) (1,101)
Derivative financial instruments (56) (3,867) (14,637)
Zero dividend preference shares - (86,448) (61,327)
(34,303) (143,098) (77,065)
--------------------------------------- --------------- --------------- ---------------
Net current liabilities (27,310) (134,757) (72,879)
--------------------------------------- --------------- --------------- ---------------
Total assets less current liabilities 446,633 238,659 379,318
--------------------------------------- --------------- --------------- ---------------
Non-current liabilities
Loans (50,000) - (24,699)
Zero dividend preference shares (160,827) (92,272) (136,034)
--------------------------------------- --------------- --------------- ---------------
Net assets 235,806 146,387 218,585
--------------------------------------- --------------- --------------- ---------------
Represented by
Ordinary share capital 9,030 9,065 9,065
Share premium account 19,468 20,030 20,031
Special reserve 233,866 233,866 233,866
Non-distributable reserve 32,069 32,069 32,069
Capital reserves (68,219) (159,510) (86,928)
Revenue reserve 9,592 10,867 10,482
--------------------------------------- --------------- --------------- ---------------
Total attributable to equity holders 235,806 146,387 218,585
Net asset value per ordinary share
Basic - pence 261.14 161.48 241.12
--------------------------------------- --------------- --------------- ---------------
UNAUDITED CONDENSED GROUP STATEMENT OF CASH FLOWS
Six months to Six months to Year to
31 December 31 December 2015 30 June 2016
2016
GBP'000s GBP'000s GBP'000s
------------------------------------------------------ ------------------- ------------------- ------------------
Cash flows from operating activities 1,933 3,510 4,217
------------------------------------------------------ ------------------- ------------------- ------------------
Investing activities
Purchases of investments (43,874) (32,114) (46,049)
Sales of investments 60,490 29,064 65,169
Purchases of derivatives (28,607) (2,235) (8,302)
Sales of derivatives - 4,147 3,022
Cash flows from investing activities (11,991) (1,138) 13,840
------------------------------------------------------ ------------------- ------------------- ------------------
Cash flows before financing activities (10,058) 2,372 18,057
------------------------------------------------------ ------------------- ------------------- ------------------
Financing activities
Equity dividends paid (3,388) (3,400) (6,799)
Movement on loans 46,800 15,757 (11,483)
Cash flows from issue of ZDP shares 19,538 - 12,435
Cash flows from redemption of ZDP shares (62,741) - -
Cost of shares purchased for cancellation (598) (9,175) (9,174)
Cash flows from financing activities (389) 3,182 (15,021)
------------------------------------------------------ ------------------- ------------------- ------------------
Net (decrease)/increase in cash and cash equivalents (10,447) 5,554 3,036
Cash and cash equivalents at the beginning
of the period (114) 1,225 1,225
Effect of movement in foreign exchange 2,646 (640) (4,375)
------------------------------------------------------ ------------------- ------------------- ------------------
Cash and cash equivalents at the end of the period (7,915) 6,139 (114)
------------------------------------------------------ ------------------- ------------------- ------------------
Comprised of:
Cash 253 6,139 174
Bank overdraft (8,168) - (288)
Total (7,915) 6,139 (114)
------------------------------------------------------ ------------------- ------------------- ------------------
NOTES
The Directors have declared a second quarterly dividend in
respect of the year ending 30 June 2017 of 1.875p per ordinary
share payable on 22 March 2017 to shareholders on the register at
close of business on 10 March 2017. The total cost of this
dividend, which has not been accrued in the results for the six
months to 31 December 2016, is GBP1,693,000 based on 90,297,208
ordinary shares in issue at the date of this report.
The half-yearly report is available on the website
www.uil.limited and will be posted to shareholders at the beginning
of March 2017. Copies may be obtained during normal business hours
from Exchange House, Primrose Street, London, EC2A 2NY.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DMGZZDGRGNZM
(END) Dow Jones Newswires
February 21, 2017 02:00 ET (07:00 GMT)
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