Blue Planet Investment Trust plc
Half Year Report and Accounts
For the six months ended 31 October
2021
Officers and
Advisors |
|
Directors
Russell Frith (Non-Executive Chairman)
Victoria Killay (Non-Executive)
Kenneth Murray (Non-Executive) |
Investment Manager, Administrator and Secretary
Blue Planet Investment Management Ltd
17 Grosvenor Crescent
Edinburgh
EH12 5EL
Telephone No: 0131 466 66 66
E-mail: info@blueplanet.eu
www.blueplanet.eu |
|
|
Registered Office
17 Grosvenor Crescent
Edinburgh
EH12 5EL
Telephone No: 0131 466 6666
E-mail: info@blueplanet.eu
www.blueplanet.eu |
Registrars
Link Group
10th Floor, Central Square
29 Wellington Street
Leeds
LS1 4DL
Email: shareholderenquiries@linkgroup.com
www.linkgroup.eu
Shareholder Helpline No: 0371 664 0300 (calls are charged at the
standard geographic rate and will vary by provider. Calls outside
the UK will be charged at the applicable international rate. Lines
are open 9am-5.30pm, Mon-Fri) |
Statutory Auditors
Johnston Carmichael LLP
7-11 Melville Street
Edinburgh EH3 7PE |
Custodians
Caceis Investor Services
Broadwalk House, 5 Appold Street
London
EC2A 2AG |
Bankers
Lloyds Banking Group
1st Floor
48 Chiswell Street
London EC1Y 4XX |
Interactive Brokers (U.K.) Ltd
Level 20 Heron Tower, 110 Bishopsgate
London EC2N 4AY |
Registered Number
SC192153 |
|
Blue Planet Investment Trust plc is a member of the Association
of Investment Companies.
Investment Policy
The investment policy of the Company is to invest in securities
(including equities, exchange traded funds, equity-related
securities, bonds, and derivatives) issued by companies,
Governments and other types of issuers located throughout the
world.
Investment Objective
The investment objective of the Company is to provide
shareholders with a combination of capital growth and income.
The Company has not set maximum exposures for any type of
issuer, geographical regions or sectors. How the Company’s
investments are allocated will depend on market conditions and the
judgement of the Board as to what is in the best interests of
Shareholders. This is to provide it with the flexibility that is
necessary to deal with an ever-changing economic environment. It
would, however, normally be expected that most of the Company’s
investments will be in equities, exchange traded funds,
equity-related securities, preference shares, bonds, bills and
derivatives. However, the Company is not prohibited from investing
in other types of securities including unlisted investments and
property. No more than 15 per cent of the Company’s portfolio may
be invested in any one investment at the time the investment is
made. There is no restriction on the amount that may be invested in
any one country.
Under the Company’s Articles of Association, the maximum gearing
the Company may deploy is 75% of NAV. The Company may borrow in
Sterling and other currencies.
Financial Record
including Key Performance Indicators |
Six
months ended 31
October 2021
(unaudited) |
Six
months ended 31
October 2020
(unaudited) |
Year
ended 30
April 2021
(audited) |
Total return per share
(p)1 |
(3.64) |
0.60 |
8.97 |
NAV total return per share
(%)2 |
(10.0) |
2.0 |
31.6 |
Share price total return (%)
3 |
(13.6) |
(3.6) |
30.1 |
Total return on Benchmark Index
4 (%) |
5.8 |
(4.0) |
22.1 |
Revenue return available for
shareholders (£’000) |
(246) |
132 |
34 |
Revenue return per share
(p)1 |
(0.49) |
0.27 |
0.07 |
Capital return per share
(p)1 |
(3.15) |
(0.33) |
8.90 |
Dividend per share (net)
(p)5 |
- |
- |
0.52 |
Dividend yield on our shares
(%)6 |
N/A |
N/A |
2.0 |
Dividend yield on Benchmark Index
(%) |
3.4 |
4.7 |
3.1 |
|
|
|
|
Total assets less current
liabilities (excluding loans) (£’000) |
20,561 |
15,510 |
19,952 |
Loans (£’000) |
(4,635) |
(1,668) |
(1,967) |
Shareholders’ funds (£’000) |
15,926 |
13,842 |
17,985 |
Net asset value per share
(p)7 |
32.19 |
27.98 |
36.35 |
Share price (p) – (Bid) |
22.00 |
19.00 |
26.00 |
Share price discount to NAV
(%)8 |
31.7 |
32.1 |
28.5 |
Gearing (%)9 |
27.7 |
11.1 |
7.6 |
Ongoing Charges (%)
10 |
4.6 |
4.6 |
4.5 |
The Board assesses the Company’s performance in meeting its
objectives against the above KPIs, they also believe the above KPIs
are of most relevance to shareholders in monitoring the performance
of the Company and therefore the return on their investment in the
Company.
- Returns per share are calculated by taking the figure for
“Return on ordinary activities after taxation and total
comprehensive income” for each column as stated on the Income
Statement and dividing by the weighted average number of ordinary
shares in issue during the period. (Note 3)
- NAV total return per share is calculated as the percentage
change in net asset value per share in the period with dividend
paid during the period reinvested at the time of distribution.
- Share price total return is calculated as the percentage change
in share price in the period with dividend paid during the period
reinvested at the time of distribution.
- The Company’s benchmark index is an index of the top 100 listed
companies in the UK, with dividends reinvested at the time of
distribution. The percentage change in value between each period
end is shown above.
- No interim dividend is proposed. An annual dividend for the
year ended 30 April 2021 was paid to
shareholders on 6th September
2021.
- Dividend yield is dividend proposed/paid divided by share price
(bid) at the period end.
- Net asset value per share is calculated as shareholders’ funds
divided by the number of ordinary shares in issue at the period
end.
- Calculated as the difference between net asset value per share
and share price, divided by net asset value per share.
- Net debt as a percentage of shareholders’ funds. Net debt is
equal to total loans less cash at bank.
- Ongoing charges figure has been prepared in accordance with the
Association of Investment Companies (“AIC”) recommended
methodology. Total administrative expenses, as stated on the income
statement, is divided by average shareholders’ funds in the
period.
The Investment
Manager
Under the Alternative Investment Fund Management Directive
legislation, the Trust has elected to be its own AIF manager but
has delegated the day to day management of the investment portfolio
and administration to Blue Planet Investment Management Ltd. It is
an independent firm that specialises in advising and managing
investment and family trusts. It has a great deal of expertise in
managing investments on a worldwide basis. It is regulated by the
Financial Conduct Authority.
Blue Planet Investment Management Ltd is the investment manager
of the Company and receives an annual fee of 1.50% per annum of the
total assets of the company which is paid monthly. Blue Planet
Investment Management Ltd also receives £196,000 per annum in
respect of administration and secretarial services. The investment
management, administration and secretarial services agreements may
only be terminated on receipt of two years notice.
Website Information
Please take the time to visit our website:
www.blueplanet.eu
Subscribe to our monthly fact sheet service and download past
monthly fact sheets:
https://www.blueplanet.eu/monthly-factsheets
To download historical Annual and Interim reports:
https://www.blueplanet.eu/report-accounts
To view stock market RNS announcements:
https://www.blueplanet.eu/regulatory-news
Retail Distribution of Investment Company Shares
Blue Planet Investment Trust plc currently conducts its affairs
so that the shares issued by the Company can be recommended by
Independent Financial Advisers to ordinary retail investors in
accordance with the Financial Conduct Authority’s rules in relation
to non-mainstream investment products and intends to continue to do
so for the foreseeable future.
The shares are excluded from the Financial Conduct Authority’s
restrictions which apply to non-mainstream investment products
because they are shares in an investment trust.
PRIIPS Key Information Documents
We are required by regulations to provide investors with a Key
Information Document (“KID”) which includes performance projections
which are the product of prescribed calculations based on the
Company’s past performance. Whilst the content and format of the
KID cannot be amended under the applicable regulations, the Board
does not believe that these projections are an appropriate or
helpful way to assess the Company’s future prospects. Accordingly,
the Board urges shareholders to also consider the more complete
information set out in the Annual Report and Accounts, together
with the Company’s interim report and accounts, monthly fact sheets
and net asset value announcements, when considering an investment
in the Company’s shares. These documents are published on the
investment managers website at www.blueplanet.eu
Interim Management
Report – Portfolio Information
As at 31 October
2021 |
|
|
|
|
Country |
Valuation (£) |
% of
Portfolio |
Equities |
|
|
|
DigitalOcean Holdings Inc
Dynatrace Inc
Mogo Inc
Digital Turbine Inc
Repligen Corporation
Palantir Technologies Inc
Advanced Micro Devices Inc
F5 Networks Inc
Nokia Oyj
CleanSpark Inc
Applied Materials Inc
Mirriad Advertising plc
Teradyne Inc
Lam Research Corporation
Taiwan Semiconductor ADR
Qualcomm Inc
Arista Networks Inc.
Illumina Inc
Silvergate Capital Corp
Riskified Ltd
Micron Technology Inc
STAAR Surgical Co
ProQR Therapeutics NV
CareCloud Inc
Keysight Technologies Inc
AcuityAds Holdings Inc
Matterport Inc
PubMatic Inc
S4 Capital plc
C3.ai Inc
Twitter Inc
Twist Bioscience Corp
Moovly Media Inc
Isoray Inc
Invitae Corp
Avacta Group plc
MediWound Ltd
Berkeley Lights Inc
Revance Therapeutics Inc
Caladrius Biosciences Inc
TAAL Distributed Information
Telford Offshore Holdings Ltd |
United
States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United Kingdom
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
Canada
United States
United States
United Kingdom
United States
United States
United States
Canada
United States
United States
United Kingdom
United States
United States
United States
United States
Canada
Cayman Islands |
1,107,515
977,406
874,950
857,329
835,667
748,708
660,059
650,118
645,904
638,833
611,240
610,521
601,752
597,686
572,143
570,568
530,316
529,894
524,042
522,795
520,826
519,091
512,983
492,770
438,235
394,572
374,716
354,488
335,702
333,387
312,937
311,562
293,379
272,118
213,186
189,312
174,156
173,330
170,845
151,479
17,637
- |
5.4
4.7
4.3
4.2
4.1
3.6
3.2
3.2
3.1
3.1
3.0
3.0
2.9
2.9
2.8
2.8
2.6
2.6
2.6
2.6
2.5
2.5
2.5
2.4
2.1
1.9
1.8
1.7
1.6
1.6
1.5
1.5
1.4
1.3
1.0
0.9
0.8
0.8
0.8
0.7
0.1
0.0 |
|
|
20,224,157 |
98.1 |
Debt
Securities |
|
|
|
Telford Offshore 12%
Perpetual |
Cayman Islands |
171,536 |
0.8 |
|
|
171,536 |
0.8 |
Total
Investments |
|
20,395,693 |
98.9 |
|
|
|
|
Cash |
|
223,636 |
1.1 |
|
|
|
|
Total |
|
20,619,329 |
100.0 |
Interim Management
Report
Performance
It has now been a full year since Blue Planet Investment Trust
plc set out on a new path toward capital growth, having previously
pursued a focus of income generation for several years. This change
of strategy helped the Trust produce a Net Asset Value (NAV) total
return for the year ending 30 April
2021 of +31.6%. Since the start of this financial year, the
six months to 31 October 2021, our
NAV total return was -10.0%. Below gives more detail on the reasons
for this and how we have progressed to date.
Since 31 October 2020, our NAV
rose from 27.98p to a high of 45.47p, a gain of 62.5% in the space
of just a few months. From that high point, growth stocks fell out
of favour with investors and consequently, our NAV fell 20.1% to
36.35p by the 30 April 2021. This was
disappointing but still a +29.9% gain over that six-month period.
In the current financial year our NAV has fallen, reaching a low of
29.43p before stabilizing as investors moved capital back into
growth stocks and the portfolio recovered in the final months of
the interim period, rising 9.4% to finish at 32.19p.
We began the current financial year with 96.0% invested in
equities, 1.1% in bonds, 2.9% in cash and our gearing was at a
conservative 7.6%. These exposures remained largely unchanged
during this interim period, our investments in equities represented
98.1% of the portfolio, 0.8% in bonds, 1.1% in cash and our gearing
stood at 27.7%.
We have continued to find new and interesting companies to
invest in and have, and will, continue to refine the portfolio as
the businesses we are invested in report earnings and provide
updates. During the past six months, we bought Advanced Micro
Devices Inc which manufacture CPU’s (Computer Processing Unit),
GPU’s (Graphical Processing Unit) and chips for servers which has
been gaining market share at the expense of Intel Corp.
DigitalOcean Holdings Inc, now our top holding and was our best
performing investment in the six months, is a cloud computing
company with a focus on small and medium sized businesses. F5
Networks Inc, a networking company that is transitioning from a
hardware business to a higher growth software business. Matterport
Inc, a company that digitizes real-world spaces with 3D capture
technology. Riskified Ltd, a company that uses artificial
intelligence (algorithms) to analyse online orders for fraud,
improving sales and reducing costs for its clients. Silvergate
Capital Corp, a bank that has a focus on innovators, particularly
in providing blockchain and digital currency services to clients.
STAAR Surgical Co, a medical technology company that researches,
develops, manufactures, distributes, and sells products for use in
refractive surgery, and finally, Twitter Inc, the micro-blogging
social media company has improved its monetization and is exploring
the use of blockchain technology to decentralise its platform.
As regards to sales during the period, we sold Agora Inc,
Alteryx Inc, Amazon.com Inc, Ciena Corporation, Digital Media
Solutions Inc, Fastly Inc, IP Group plc, Luminar Technologies Inc,
PagSeguro Digital Ltd, Regeneron Pharmaceuticals Inc, SSR Mining
Inc and Ultra Clean Holdings Inc. Some of these companies failed to
live up to our expectations whereas others were sold to reinvest in
better opportunities.
In terms of how our investments performed, the largest positive
contribution was from DigitalOcean Holdings Inc which had a total
return during the period of +69.8%. This was followed by Dynatrace
Inc +45.5%, Repligen Corporation +47.8%, Silvergate Capital Corp
+51.9%, Palantir Technologies Inc +25.2%, Arista Networks Inc
+28.4%, Nokia Oyj +22.9%, Digital Turbine Inc +15.8% and ProQR
Therapeutics NV +25.1% all made material contributions.
Our best performer last year was Mogo Inc which had a total
return of +319.9%. Perhaps not surprisingly after such a strong run
up, it gave up some of those gains to become the biggest negative
contributor to our performance during the past six months with a
total return of -40.2%. There were no announcements of bad news, in
fact the company continues to go from strength to strength and is
forecast to grow revenues 28% this year and 36% next year. We
believe Mogo is building a financial “super-app” providing its
customers with saving, lending, bitcoin trading, investing options,
B2B payments and a prepaid card. The average analyst target price
for the stock is $11.45, representing
almost 100% upside.
Other negative returns came from Mirriad Advertising plc, which
returned +53.8% last year. It also saw profit taking and fell
-33.6% in the current period. Moovly Media Inc, which fell 42.9%
last year, continued to fall, returning -51.2% in the current
period, evidently this is one we may have got wrong but given time,
may still come good with the ever increasing use of video editing
software. AcuityAds Holdings Inc, our third best contributor last
year with a total return of +138.4%, fell -42.6% in the current
period. PubMatic Inc produced a total return of +86.9% last year
and fell -43.8% during this period. Avacta Group Plc returned
+87.2% last year but fell -55.7% this year. As you will notice,
many of the investments that performed so well last period have
given back a large portion of their gains this period. The
performance of these company’s shares hasn’t necessarily been due
to underperforming underlying businesses, but rather a case of
perhaps overshooting their valuations and now a period of
consolidation is required before the next leg higher.
We would like to go into more detail on the progress of many of
our investments, however as the interim report is generally a
shorter report than our annual report, we will provide a brief
summary of some of our top holdings. However, we would encourage
you to take a look at the remaining positions within the top end of
our portfolio as they are all interesting and exciting businesses
that we think will all have bright futures.
Firstly, DigitalOcean Holdings Inc, a cloud computing company
with a focus on small and medium sized businesses, recently
reported Q3 2021 revenues grew 37% year-on-year, having previously
reported revenue growth of 35% year-on-year in Q2 2021. The net
loss attributable to shareholders has narrowed and the company is
working its way towards profitability. In the most recent report,
the loss was $1.8m for the quarter,
which was a big improvement over the $10.2m loss in the same quarter last year.
Forecast growth over the next two years is expected to be
maintained at over 30% per year. DigitalOcean has grown to become
our largest holding as at 31 October
2021 and we believe it has a large addressable market and
many years of growth ahead of it.
Dynatrace Inc, our second largest holding, reported revenue
growth of 34% year-on-year in their second quarter of FY 2022 and
net income rose 3%. They reported revenue growth of 37% in the
preceding quarter and net income growth of 35%. Dynatrace continues
to provide the right tools to help businesses simplify and manage
their digital transformation and migration to the cloud. Going
forward, Dynatrace is expected to produce revenue growth of 30%
next year followed by 25% the year after, with market penetration
expected to be about 20% in 2022 from 5% in 2018. The business
continues to perform well and we are pleased with their
progress.
Mogo Inc, as mentioned above, is building a financial
“super-app” providing its customers with saving, lending, bitcoin
trading, investing options, B2B payments and a prepaid card. They
reported revenue growth in the most recent quarter of 58%
year-on-year, an acceleration from 29% in the previous quarterly
report. Net loss increased to $9.8m
from $1.0m in the previous year and
while this might not seem ideal, the company is spending on
developing their product as well as on sales and marketing to
promote their products and we believe once they have launched their
full suite of financial offerings, profits will begin to be
generated. In particular, the imminent launch of MogoTrade should
provide a new source of income. Going forward, the company has
guided for increasing revenues and the market in general is
expecting growth of 33% next year and 36% the year after.
Digital Turbine Inc was originally a mobile app pre-install
business but following acquisitions including most recently Fyber
and AdColony, the company has become a mobile advertising,
discovery and install business. The company recently reported Q2
2022 revenue growth of 338% year-on-year, whilst on a pro-forma
basis, revenue growth was 63%. Acquisition related adjustments
meant that the net loss in the quarter was $5.9m, however the company is otherwise
profitable. In fact, in the previous quarter, net income was
$14.3m, a 44% increase year-on-year.
Revenue growth in that quarter was 104% on a pro forma basis. We
think Digital Turbine is currently underappreciated and we think
that once the acquisitions are integrated, investors will be better
positioned to assess the future of the company and price estimates
will rise.
Over the past year, we believe we have constructed an exciting
and interesting portfolio that gives our shareholders exposure to
innovative, high growth companies and more importantly
differentiation from your typical tracker funds that have Apple,
Amazon and Alphabet as their top holdings. We believe investors can
get exposure to those names quite easily by buying shares in those
companies themselves, or by buying a tracker fund. Buying shares of
Blue Planet Investment Trust plc gives our shareholders exposure to
a managed fund with a new capital growth focus which we believe
will, over the longer term, provide solid returns. Volatility will
continue as the market deals with the impending tapering of
quantitative easing by central banks, rising inflation, supply
chain bottlenecks and eventually rising interest rates. We think
there is no alternative to equities at this moment in time for
investors to get a reasonable return on their investment. Cash
offers little or no return and is losing purchasing power through
inflation. Bonds are riskier now than they have ever been with the
real returns on most being negative. Commodities may well provide
protection from inflation but do not offer much in terms of
investment returns. In 2021 to date, the S&P 500 Index is up
around 25% and historically speaking, it has provided an average
annual return over the last 20 years of about 10% per year. As long
as we remain disciplined, patient and invest in the right
companies, our shareholders will see our NAV appreciate and with
that, our share price will grow providing you with capital growth
over the long term.
GICS Industry
Classification |
% of Portfolio |
Software |
27.8% |
Semiconductors |
20.6% |
Life Sciences Tools |
10.2% |
Communications |
9.1% |
Biotechnology |
8.2% |
Media |
8.0% |
Consumer Finance |
4.4% |
Interactive Media |
3.4% |
Health Care Technology |
2.5% |
Electronic Equipment |
2.2% |
Pharmaceuticals |
1.7% |
Cash |
1.1% |
Corporate Debt |
0.9% |
|
100.0 |
*October 2021
Income and Dividends
A dividend of 0.52p per share was paid on 6th
September 2021 in respect of the
financial year ended 30th April
2021. In accordance with established policy no interim
dividend has been declared for the first half of the year.
Gearing and Capital Allocation
At the end of the six-month period to 31st
October 2021 the Trust had gearing,
net of cash, equal to 27.7% of NAV and its portfolio was allocated
as follows: 98.1% was invested in equities; 1.1% in cash and 0.8%
in bonds.
Principal risks and going concern
Your Company is, and will continue to be, exposed to a number of
risks which are detailed in full in the Strategic Report on page 7
of the Annual Report and have not changed up to the date of this
report. The key market risk arises from the uncertainty regarding
the future price performance of the listed securities held by your
Company and can be affected by any number of unforeseen external
events such as Brexit and the global pandemic. If gearing is
employed this risk is magnified.
The prices of the individual listed securities in the portfolio
are monitored on a daily basis and the Board, which meets
quarterly, imposes borrowing limits to ensure gearing levels are
appropriate to market conditions.
When gearing is employed the potential impact of changes in
interest rates is taken into consideration. All investments are
listed on recognised exchanges, traded in active markets and
readily realisable, with the exception of holdings in Telford
Offshore Holdings Ltd, which are unlisted. See note 5 on page 12
for the valuation basis of these 2 holdings.
The Fund is exposed to currency risk, due to the range of
currencies in which investments are held. A substantial proportion
of the Company’s assets are held in assets denominated in foreign
currencies and movements in these currencies can significantly
affect the Sterling value of the Company’s foreign denominated
income and assets. The fund manager tracks currency movements on a
regular basis and hedging is considered on a case-by-case
basis.
The Company has no cyber systems of its own; instead, it
outsources the provision of services to third party providers who
themselves, like any company, are exposed to cyber risk. This risk
is monitored by a regular review of service providers by the
Company Secretary who reports directly to the Board of
Directors.
Where investments are made in emerging markets there is a risk
of higher volatility in the price performance of these equities and
their associated currencies. Political risk and adverse economic
circumstances are more likely to arise, putting the value of the
investment at a higher risk. The registration and settlement
arrangements in emerging markets may be less developed than in more
mature markets so operational risks of investing are higher.
The Company’s business model and strategy, together with the
risk factors likely to affect its future position are set out in
the Strategic Report on page 9 of the Annual Report and Accounts.
The Directors consider that the Company has adequate financial
resources in the form of readily realisable listed securities,
including cash and credit facilities to continue in operational
existence for the foreseeable future. For this reason, they
continue to use the going concern basis in preparing the
accounts
Related party transactions
There have been no changes to related party transactions which
were disclosed in the Directors Report on page 35 of the Annual
Report.
Borrowings, Gearing and Liquidity
The Fund ended the period with gearing net of cash of 27.7%. The
Company financed its gearing by means of credit facilities with
Interactive Brokers Incorporated.
Generally, gearing beneficially affects the Company’s NAV when
the value of its investments is rising, but adversely affects it
when the value of investments is falling.
Blue Planet Services and Price
Information Sources
Shareholders can view the Company’s share price and additional
information about the Fund on the website of Blue Planet Investment
Management Ltd (www.blueplanet.eu) and the London Stock Exchange
(www.londonstockexchange.com). To find the Company’s share price on
the London Stock Exchange website go to the Home page and type
“BLP” in the “Price Search” field.
Russell Frith
Chairman
07 December 2021
Balance Sheet
|
At 31
October
2021
£
(unaudited) |
At 31
October
2020
£
(unaudited) |
At 30
April
2021
£
(audited) |
Fixed assets (note 5) |
|
|
|
Equity
investments |
20,224,157 |
7,915,765 |
20,035,142 |
Non - equity investments |
171,536 |
7,426,821 |
230,876 |
|
20,395,693 |
15,342,586 |
20,266,018 |
Current assets |
|
|
|
Debtors |
30,898 |
123,314 |
39,740 |
Cash at bank and in
hand |
223,636 |
125,678 |
599,416 |
Creditors: amounts falling due within one year (note 6) |
(4,724,596) |
(1,749,707) |
(2,920,312) |
Net current liabilities |
(4,470,062) |
(1,500,715) |
(2,281,156) |
Net assets |
15,925,631 |
13,841,871 |
17,984,862 |
Capital and reserves |
|
|
|
Called-up share capital |
497,820 |
497,820 |
497,820 |
Share premium account |
18,426,406 |
18,426,406 |
18,426,406 |
Other reserves |
|
|
|
Capital reserve – realised |
(12,305,773) |
(9,431,933) |
(11,655,673) |
Capital reserve – investment holding (losses) / gains |
(272,277) |
(5,831,045) |
634,057 |
Capital redemption reserve |
8,167,389 |
8,167,389 |
8,167,389 |
Revenue reserve |
1,412,066 |
2,013,234 |
1,914,863 |
Shareholders’ funds |
15,925,631 |
13,841,871 |
17,984,862 |
Net asset value per ordinary share (note 3) |
32.19p |
27.98p |
36.35p |
Statement of Directors’
responsibilities
The Directors confirm that this set of condensed financial
statements has been prepared in accordance with FRS 104 “Interim
Financial Reporting” and that the interim management report herein
includes a fair review of the information required by DTR 4.2.7R
and DTR 4.2.8R.
On behalf of the Board
Russell Frith
Chairman
07 December 2021
Statement of Changes
in Equity
For the
six months ended 31 October 2021 (unaudited) |
|
|
Called-up Share capital
(£) |
Share premium
(£) |
Capital reserve-realised
(£) |
Capital reserve- investment holding losses
(£) |
Capital Redemption reserve
(£) |
Revenue reserve
(£) |
Shareholders’ funds
(£) |
|
Shareholders’ funds at
1 May 2021 |
497,820 |
18,426,406 |
(11,655,673) |
634,057 |
8,167,389 |
1,914,863 |
17,984,862 |
|
Return on
ordinary activities after taxation |
- |
- |
(650,100) |
(906,334) |
- |
(245,528) |
(1,801,962) |
|
Dividend paid during
the period |
- |
- |
- |
- |
- |
(257,269) |
(257,269) |
|
Shareholders’ funds at
31 October 2021 |
497,820 |
18,426,406 |
(12,305,773) |
(272,277) |
8,167,389 |
1,412,066 |
15,925,631 |
|
|
|
|
|
|
|
|
|
|
For the
six months ended 31 October 2020 (unaudited) |
|
|
Called-up Share capital
(£) |
Share premium
(£) |
Capital reserve-realised
(£) |
Capital reserve- investment holding losses
(£) |
Capital Redemption reserve
(£) |
Revenue reserve
(£) |
Shareholders’ funds
(£) |
|
Shareholders’ funds at 1 May 2020 |
497,820 |
18,426,406 |
(10,479,419) |
(4,949,642) |
8,167,389 |
2,979,620 |
14,642,174 |
|
Return on ordinary activities after taxation |
- |
- |
1,047,486 |
(881,403) |
- |
131,956 |
298,039 |
|
Dividend paid during the period |
- |
- |
- |
- |
- |
(1,098,342) |
(1,098,342) |
|
Shareholders’ funds at 31 October 2020 |
497,820 |
18,426,406 |
(9,431,933) |
(5,831,045) |
8,167,389 |
2,013,234 |
13,841,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
year ended 30 April 2021 (audited) |
|
|
Called-up Share capital
(£) |
Share
premium
(£) |
Capital
reserve-realised
(£) |
Capital
reserve- investment holding losses
(£) |
Capital Redemption reserve
(£) |
Revenue
reserve
(£) |
Shareholders’ funds
(£) |
Shareholders’ funds at
1 May 2020 |
497,820 |
18,426,406 |
(10,479,419) |
(4,949,642) |
8,167,389 |
2,979,620 |
14,642,174 |
Return on ordinary
activities after taxation |
- |
- |
(1,176,254) |
5,583,699 |
- |
33,585 |
4,441,030 |
Dividend paid during the period |
- |
- |
- |
- |
- |
(1,098,342) |
(1,098,342) |
Shareholders’ funds at 30 April 2021 |
497,820 |
18,426,406 |
(11,655,673) |
634,057 |
8,167,389 |
1,914,863 |
17,984,862 |
|
|
|
|
|
|
|
|
|
Income Statement
|
For the six months ended 31 October 2021
(unaudited) |
For the six months ended 31 October 2020
(unaudited) |
For the year ended 30 April 2021
(audited) |
|
Revenue
£ |
Capital
£ |
Total
£ |
Revenue
£ |
Capital
£ |
Total
£ |
Revenue
£ |
Capital
£ |
Total
£ |
Capital (losses) /
gains on investment |
|
|
|
|
|
|
|
|
|
Net (losses) /
gains |
- |
(1,374,481) |
(1,374,481) |
- |
208,213 |
208,213 |
- |
5,246,122 |
5,246,122 |
Exchange losses |
- |
(65,113) |
(65,113) |
- |
(4,246) |
(4,246) |
- |
(621,128) |
(621,128) |
Net capital gains /
(losses) on investment |
- |
(1,439,594) |
(1,439,594) |
- |
203,967 |
203,967 |
- |
4,624,994 |
4,624,994 |
Income from
investments |
22,763 |
- |
22,763 |
459,008 |
- |
459,008 |
588,972 |
- |
588,972 |
Bank interest
receivable |
- |
- |
- |
11 |
- |
11 |
72 |
- |
72 |
Gross revenue and
capital (losses) / gains |
22,763 |
(1,439,594) |
(1,416,831) |
459,019 |
203,967 |
662,986 |
589,044 |
4,624,994 |
5,214,038 |
Administrative
expenses |
(260,674) |
(106,065) |
(366,739) |
(310,634) |
(36,965) |
(347,599) |
(526,225) |
(202,466) |
(728,691) |
Net return before interest payable and taxation |
(237,911) |
(1,545,659) |
(1,783,570) |
148,385 |
167,002 |
315,387 |
62,819 |
4,422,528 |
4,485,347 |
Interest payable |
(4,618) |
(10,775) |
(15,393) |
(2,144) |
(919) |
(3,063) |
(6,464) |
(15,083) |
(21,547) |
Return on ordinary activities before taxation |
(242,529) |
(1,556,434) |
(1,798,963) |
146,241 |
166,083 |
312,324 |
56,355 |
4,407,445 |
4,463,800 |
Taxation on ordinary
activities |
(2,999) |
- |
(2,999) |
(14,285) |
- |
(14,285) |
(22,770) |
- |
(22,770) |
Return on ordinary
activities after taxation and total comprehensive income |
(245,528) |
(1,556,434) |
(1,801,962) |
131,956 |
166,083 |
298,039 |
33,585 |
4,407,445 |
4,441,030 |
Return per ordinary
share (note 3) |
(0.49)p |
(3.15)p |
(3.64)p |
0.27p |
0.33p |
0.60p |
0.07p |
8.90p |
8.97p |
The Total column of the income statement represents the profit
& loss account of the Company.
All revenue and capital items in the above statement derive from
continuing operations.
There were no recognised gains and losses other than those
disclosed above. Accordingly, a statement of total recognised gains
and losses is not required.
Notes
1. The financial
statements for the six months to 31st October 2021 have been prepared on the basis of
the accounting policies set out in the Company’s Annual Report and
Accounts as at 30th April
2021 and in accordance with FRS 104 “Interim Financial
Reporting” and applicable to UK law and accounting standards.
2. All expenses are charged to the
revenue account with the exception of management fees and interest
charges on borrowings, 70% of which, less the appropriate tax
relief, is charged to capital. Investment Management and
Administrators fees totalled £249,603 in the period (Full year to
30 April 2021 - £485,237)
3. The return per ordinary share is
based upon the following figures:
|
31
October 2021
(unaudited) |
31
October 2020
(unaudited) |
30 April
2021
(audited) |
Revenue return |
£(245,529) |
£131,956 |
£33,585 |
Capital
return |
£(1,556,434) |
£166,083 |
£4,407,445 |
Weighted
average number of ordinary shares in issue during the period |
49,474,863 |
49,474,863 |
49,474,863 |
The net asset value per ordinary share is calculated on
49,474,863 ordinary shares in issue at the end of the period after
deducting treasury shares.
4. No interim
dividend is proposed.
5. The carrying
value of investments is equivalent to their fair value and all
investments are measured at fair value through profit or loss, are
quoted in active markets and classified as level one, with the
exception of Telford Offshore Holding Ltd Perpetual an unquoted
bond which management have judged to be valued at 30% of par value
and is classified as level three and Telford Offshore Holdings Ltd
ordinary shares which have been written down to nil value on the
same basis.
6. The Company
has credit facilities with Interactive Brokers Incorporated. Loans
are secured against the investments held in custody accounts.
As at 31st October 2021 the
prevailing rate of interest on the facility with Interactive
Brokers Incorporated was 0.8%. At 31
October 2021, the amount outstanding with this facility was
£4,635,069 (31st October 2020 -
£1,667,843)
7. The total
number of shares held in treasury is 307,125. These shares have no
voting rights, do not rank for dividend and are excluded from the
calculation of net asset value and return per ordinary share. At
31st October 2021, the Company had
the authority to purchase a further 7,467,000 of its own shares. A
resolution to renew this authority will be proposed at the Annual
General Meeting in 2022.
8. The figures and financial
information for the year ended 30th April
2021 are extracted from the latest published accounts of the
Company and do not constitute statutory accounts for the period as
defined in section 434 of the Companies Act 2006. Those accounts
have been delivered to the Registrar of Companies and include the
report of the auditors which was unqualified and did not contain a
statement either under section 498(2) or 498(3) of the Companies
Act 2006. The half yearly Report and Accounts have not been audited
or reviewed by the Company’s Auditors.