TIDMJEDT
RNS Number : 7113W
JPMorgan European Discovery Trust
14 December 2023
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMorgan European DISCOVERY Trust plc
Half Year Report & FINANCIAL STATEMENTS for the six
months
ended 30TH September 2023
Legal Entity Identifier: 54930049CEWDI46Y3U28
Information disclosed in accordance with DTR 4.2.2
JPMorgan European Discovery Trust plc, the FTSE 250 trust
investing in European smaller companies, announces its
interim results for the six-month period ended 30 September 2023 (the "Reporting Period").
European small caps underperformed large caps during the period,
as small caps are particularly sensitive to 'risk off' conditions.
The Company was not immune to these conditions and the portfolio
underperformed its benchmark. However, the Manager has made
important enhancements to the portfolio selection process with
improved risk management. There has been improved performance over
recent months as the portfolio adjustments begin to pay off.
Financial highlights for the Reporting Period include:
-- NAV per Ordinary Share of 434.5 pence (as at 30 September
2023) down 12.8% from 31 March 2023
o European small caps underperformed large caps with the
benchmark index, MSCI Europe (ex UK) Small Cap Index, declining
5.7% v large cap MSCI Europe (ex UK) NR Index, which declined
2.0%
-- Shareholder total return of -10.7%, better than reported
return on NAV of -11.4% with the Company's discount narrowing from
-15.1% to -14.8%
-- Interim dividend increased to 2.5 p per share (2022: 1.2p)
o To be paid on 5 February 2024 to shareholders on the register
as at 29 December 2023
-- 50,000 shares were repurchased over the period and a further
3,384,539 shares have been repurchased since the period end. The
share price discount has narrowed to 11.3%, as at time of
writing.
Operational highlights for the Reporting Period include:
-- Enhancements to the investment process and risk management,
with increased exposure to Consumer Discretionary and Financials
sectors
o Added Technogym, manufacturer of premium gym equipment,
De'Longhi, the leading producer of espresso machines for households
and businesses, French reinsurer SCOR and Italian bank, BPER
Banca
-- Arun Sarwal joined the Board as an independent non-executive director.
o Arun has extensive experience developing technology businesses
and working in financial services, across a range of industry
segments and was previously CEO of Fund Communication Solutions at
Broadridge
Outlook:
-- The Company's performance has improved over recent months as
portfolio adjustments begin to pay off
-- Combination of low valuations of European small caps and
possible worldwide central bank easing should be positive for the
Company.
CHAIRMAN'S STATEMENT
Investment Performance
Investment companies have had a well-publicised 'tough year',
with high inflation and global macro-uncertainty taking its toll on
performance across many asset classes. Against this backdrop, the
Trust underperformed its benchmark over the six months to end of
September 2023. During the half year to 30th September 2023, the
Company recorded a total return on net assets of -11.4%, with the
Company's benchmark index, the MSCI Europe (ex UK) Small Cap NR
Index, returning -5.7% over the same period. The total return to
shareholders was -10.7%, slightly better than the reported return
on NAV due moderate narrowing of the discount at which the
Company's shares traded, from -15.1% to -14.8% over the six
months.
The Company's longer-term performance has been mixed. Over the
past five years, the total return on net assets was 2.0%, compared
the benchmark total return of 20.1%. However, over the past ten
years, the total return of 119.8% has been high in absolute terms
and close to the benchmark return of 124.7%.
The Investment Managers' Report that follows provides a review
of markets, and more detail on the performance drivers within the
portfolio, along with some discussion of the market outlook.
Revenue and Dividends
Gross revenue return for the six months to 30th September 2023
was higher than the corresponding period in 2022, at 12.62 pence
per share (2022: 12.32 pence). The Board has decided the interim
dividend of 2.5 pence (2022: 1.2 pence) per share which will be
paid on 5th February 2024 to shareholders on the register as at
29th December 2023 (the ex-dividend date will be 28th December
2023). The Board will keep this matter under review and take into
account the income received and the level of the Company's revenue
reserves when determining the final dividend for the year in
2024.
Discount Management and Share Repurchases
The Board continues to monitor closely the level of the discount
and believes that its ability to repurchase shares to minimise the
short-term volatility and the absolute level of the discount is of
prime importance. A total of 50,000 shares were repurchased in the
six months to 30th September 2023. A further 3,384,539 shares have
been repurchased since the period end. At the time of writing, the
share price discount had narrowed to 11.3%.
The Board
In line with the Board's succession planning and the retirement
of Ashok Gupta at the 2023 Annual General meeting, the Board
undertook a search to identify a new Director. Following the
successful conclusion of this search, and as announced on 9th May
2023, Arun Sarwal was appointed as an independent non-executive
director with effect from the conclusion of the Annual General
Meeting 2023. Arun has extensive experience developing technology
businesses and working in financial services, across a range of
industry segments including commercial & investment banking,
and asset and wealth management across the globe. Some of his
previous roles include his position as the CEO of Fund
Communication Solutions at Broadridge.
Environmental, Social and Governance ('ESG')
As highlighted in the 2023 Annual Report, the Board has
continued to engage with the Manager on the integration of ESG
factors into its investment process. These issues are considered at
every stage of the investment decision. The Board shares the
Investment Managers' view of the significance of ESG factors, both
when making initial investment decisions and during ongoing
engagement with investee companies throughout the period of the
investment. For more details, please refer to pages 23 to 26 of the
2023 Annual Report, which can be found on the Company's website at:
www.jpmeuropeandiscovery.co.uk .
TCFD
JPMorgan Asset Management (JPMAM) published its first UK Task
Force on Climate-related Financial Disclosures ('TCFD') Report for
the Company in respect of the year ended 31 December 2022 on 30th
June 2023. The report is designed to provide investors with
transparency into the portfolio's climate-related risks and
opportunities according to the Financial Conduct Authority (FCA)
Environmental, Social and Governance (ESG) Sourcebook and the Task
Force on Climate related Financial Disclosures (TCFD)
Recommendations. The report is available on the Company's website
under the ESG documents section www.jpmeuropeandiscovery.co.uk
.
Outlook
Higher interest rates are beginning to bite and economic
activity seems to be slowing, which is likely to put earnings and
share prices under pressure as we head into 2024. However, there
are reasons to be optimistic; rates are at, or near, their peaks in
the major developed economies and may begin to fall next year.
The Manager has made changes to the investment process and has
enhanced risk management to protect the portfolio on the downside
in volatile markets and better position it to capture the upside.
Relative performance has improved in recent months, suggesting that
these recent portfolio changes are beginning to pay off. The Board
welcomes the Managers' ongoing efforts to further enhance returns
by taking advantage of current low valuations to acquire other
interesting hidden gems, at attractive prices.
History shows that while European markets have been through
challenging periods, performance has subsequently rebounded
strongly as these challenges abate. European small cap companies
tend to outperform as the broader market rallies. Looking ahead,
any signs that central banks are considering lower interest rates
should provide a significant boost to investor confidence and
equity markets. If history is any guide, European small caps in
general, and your Company in particular, should do even better. On
this basis, the Board is optimistic about the Company's prospects
over 2024 and beyond.
Marc van Gelder
Chairman
13th December 2023
INVESTMENT MANAGERS' REPORT
Review
Investor sentiment remained risk adverse as government bond
yields continued to move higher. While inflationary pressures began
to ease, concerns around unsustainably large government fiscal
deficits grew. European small caps underperformed large caps, as
small caps are particularly sensitive to such 'risk off'
conditions.
The benchmark MSCI Europe (ex UK) Small Cap NR Index fell by 5.7
per cent over the review period versus the large cap MSCI Europe
(ex UK) NR Index that fell 2.0 per cent.
Portfolio performance
The portfolio's NAV declined by 11.4 per cent, underperforming
its benchmark by 5.7 percentage points, as the Company's investment
process tends to struggle during periods of high volatility. A
detailed overview of the Company's investment process follows this
report.
Contributors to performance included French professional
installations company, Spie, due to continued high demand driven by
the energy transition towards electrification. Scout24, the leading
German real estate digital classifieds platform, contributed due to
strong growth even as the real estate market remained under
pressure. Dutch engineering services provider, Arcadis,
outperformed due to increasing demand driven by climate change, the
energy transition, and urbanisation.
Over the period, detractors from performance included Bravida,
the Swedish commercial building installation company. Its share
price came under pressure as cost inflation depressed margins, even
though orders held up well. Melexis, a Belgium provider of
semiconductor chips primarily for the automotive end market,
underperformed due to concerns that high inventories at their
customers could temporarily depress demand. Swedish engineering
services provider, AFRY, detracted as weaker demand impacted their
utilisation rate which depressed margins.
Portfolio changes
During the year, we have made some important enhancements to our
process and risk management in the portfolio, seeking to minimise
downside risk during periods of volatility and capture upside risk
when volatility reduces. The changes made have led to improved
portfolio construction and include an increase in the number of
holdings, thereby reducing thematic and sector concentration during
periods of global stress.
Among other things, we increased the portfolio's exposure to the
Consumer Discretionary sector. Valuations are attractive, inventory
levels are normalising, and there is potential for real wage growth
as wage increases feed through and inflation moderates. Falling
input costs are a further tailwind to earnings. For instance, we
added Technogym, the Italian manufacturer of premium gym equipment,
and De'Longhi, a leading producer of espresso machines for
households and businesses. We increased the portfolio's Financials
holdings, including via French reinsurer, Scor, as operational
momentum began to improve following a business restructuring, and
Italian bank, BPER Banca, due to its very attractive valuation and
better-than-expected profit growth.
To fund these purchases, we reduced our exposure to construction
related industrials, as high bond yields are adversely impacting
demand for new construction, and cost inflation is putting pressure
on margins. For example, we sold Swiss listed Georg Fischer and
Dutch Aalberts. We also sold or reduced companies whose market caps
had risen due to outperformance to the point where they were no
longer small caps. These sales included D'ieteren, a Belgium
holding company focused primarily on automotive related end
markets, and Prysmian, an Italian manufacturer of high voltage
cables which are vital to support the transition towards renewable
energy.
As a result of these changes Consumer Discretionary became the
portfolio's largest sector overweight and Financials became the
second largest overweight. Healthcare and Real Estate remained the
largest underweights due to a combination of poor momentum and
expensive valuations. France and Italy remained the two largest
country overweights, while Norway and Switzerland remained the two
most significant underweights.
At the end of September 2023, portfolio gearing was 3.8%.
Outlook
The long-anticipated global slowdown appears to have finally
arrived, and with it the likelihood that central bank rates have
peaked. This makes the near-term outlook for equities very hard to
anticipate. On the one hand, company earnings are slowing, on the
other, the headwinds created by higher rates are starting to show
signs of abating. We suspect that earnings will dominate in the
near term, keeping equities under pressure, while expectations of
lower interest rates may play an increasingly supportive role next
year.
Top-down macroeconomic uncertainty has been dominating the
performance of stock markets for some time. As a result we have
transitioned towards a more diversified portfolio comprising
companies that are benefitting from the current high interest rate
environment, while adding attractively valued companies that should
do well as interest rates begin to fall. While this is a difficult
balancing act, the Trust's performance has improved over recent
months as portfolio adjustments are beginning to pay off. Looking
to next year, the combination of extremely low valuations for
European small caps, and possible central bank easing around the
world, should be very positive for markets in general and even more
so for our asset class.
Francesco Conte
Edward Greaves
Investment Managers
13th December 2023
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its
half year report:
Principal Risks and Uncertainties
The principal and emerging risks and uncertainties faced by the
Company fall into the following broad categories: investment
underperformance and strategy; market and currency; accounting,
legal and regulatory; operational; cyber-crime, financial,
corporate governance and shareholder relations, climate change,
pandemic risk, artificial intelligence, geopolitical and global
recession. The Board has reviewed the principal risks and
uncertainties, reported in the Annual Report and Financial
Statements for the year ended 31st March 2023, and concluded that
it does not believe that currently there are any emerging risks
facing the Company. In the view of the Board, these principal risks
and uncertainties are as much applicable to the remaining six
months of the financial year as they were to the six months under
review.
Related Parties Transactions
During the first six months of the current financial year, no
transactions with related parties have taken place which have
materially affected the financial position or the performance of
the Company.
Going Concern
The Directors believe, having considered the Company's
investment objectives, risk management policies, capital management
policies and procedures, nature of the portfolio and expenditure
projections, that the Company has adequate resources, an
appropriate financial structure and suitable management
arrangements in place to continue in operational existence for the
foreseeable future. More specifically, that there are no material
uncertainties pertaining to the Company that would prevent its
ability to continue in such operational existence for at least 12
months from the date of the approval of this half yearly financial
report. For these reasons, they consider that there is reasonable
evidence to continue to adopt the going concern basis in preparing
the financial statements.
Directors' Responsibilities
The Board of Directors confirm that, to the best of its
knowledge:
(i) the condensed set of financial statements contained within
the half-yearly financial report has been prepared in accordance
with FRS 104 'Interim Financial Reports' and gives a true and fair
view of the state of affairs of the Company and of the assets,
liabilities, financial position and net return of the Company, as
at 30th September 2023, as required by the UK Listing Authority
Disclosure Guidance and Transparency Rules 4.2.4R; and
(ii) the interim management report includes a fair review of the
information required by 4.2.7R and 4.2.8R of the UK Listing
Authority Disclosure Guidance and Transparency Rules.
In order to provide these confirmations, and in preparing these
financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business;
and the Directors confirm that they have done so.
For and on behalf of the Board
Marc van Gelder
Chairman
13th December 2023
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30th SEPTEMBER 2023
(Unaudited)
(Unaudited) Six months ended (Audited)
Six months ended 30th September Year ended
30th September 2023 2022 31st March 2023
------------------ -------------------------------- -------------------------------- ------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ -------- ---------- ---------- -------- ---------- ---------- -------- --------- ---------
Losses on
investments
held at fair
value
through profit
or loss - (102,583) (102,583) - (164,778) (164,778) - (45,535) (45,535)
Foreign exchange
gains
on liquidity fund - 235 235 - 1,819 1,819 - 2,265 2,265
Net foreign
currency
gains/(losses) - 1,166 1,166 - (1,455) (1,455) - (2,366) (2,366)
Income from
investments 19,519 - 19,519 19,359 - 19,359 22,389 - 22,389
Interest
receivable
and similar
income 351 - 351 70 - 70 113 - 113
------------------ -------- ---------- ---------- -------- ---------- ---------- -------- --------- ---------
Gross
return/(loss) 19,870 (101,182) (81,312) 19,429 (164,414) (144,985) 22,502 (45,636) (23,134)
Management fee (944) (2,202) (3,146) (989) (2,308) (3,297) (1,925) (4,491) (6,416)
Other
administrative
expenses (355) - (355) (312) - (312) (690) - (690)
------------------ -------- ---------- ---------- -------- ---------- ---------- -------- --------- ---------
Net return/(loss)
before finance
costs
and taxation 18,571 (103,384) (84,813) 18,128 (166,722) (148,594) 19,887 (50,127) (30,240)
Finance costs (657) (1,532) (2,189) (138) (321) (459) (530) (1,237) (1,767)
------------------ -------- ---------- ---------- -------- ---------- ---------- -------- --------- ---------
Net return/(loss)
before taxation 17,914 (104,916) (87,002) 17,990 (167,043) (149,053) 19,357 (51,364) (32,007)
Taxation (1,509) - (1,509) (1,548) - (1,548) (1,845) - (1,845)
------------------ -------- ---------- ---------- -------- ---------- ---------- -------- --------- ---------
Net return/(loss)
after taxation 16,405 (104,916) (88,511) 16,442 (167,043) (150,601) 17,512 (51,364) (33,852)
------------------ -------- ---------- ---------- -------- ---------- ---------- -------- --------- ---------
Return /(loss) per
share (note 3) 10.42p (66.62)p (56.20)p 10.43p (105.95)p (95.52)p 11.11p (32.60)p (21.49)p
------------------ -------- ---------- ---------- -------- ---------- ---------- -------- --------- ---------
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or
discontinued in the period.
The 'Total' column of this statement is the profit and loss
account of the Company and the 'Revenue' and 'Capital' columns
represent supplementary information prepared under guidance
issued by the Association of Investment Companies.
The net return/(loss) after taxation represents the
profit/(loss) for the period/year and also the total comprehensive
income.
CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30th SEPTEMBER 2023
Called
up Capital
share Share redemption Capital Revenue
capital premium reserve reserves(1) reserve(1) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- -------- -------- ----------- ------------ ----------- ----------
Six months ended 30th September
2023
(Unaudited)
At 31st March 2023 7,874 1,312 7,762 749,999 18,115 785,062
Repurchase of shares
into Treasury - - - (185) - (185)
Net (loss)/return on
ordinary shares - - - (104,916) 16,405 (88,511)
Dividends paid in the
period (note 4) - - - - (12,283) (12,283)
---------------------------- -------- -------- ----------- ------------ ----------- ----------
At 30th September 2023 7,874 1,312 7,762 644,898 22,237 684,083
---------------------------- -------- -------- ----------- ------------ ----------- ----------
Six months ended 30th September
2022
(Unaudited)
At 31st March 2022 7,924 1,312 7,712 805,617 11,154 833,719
Repurchase and cancellation
of Company's own shares (50) - 50 (4,254) - (4,254)
Net (loss)/return on
ordinary shares - - - (167,043) 16,442 (150,601)
Dividends paid in the
period (note 4) - - - - (8,661) (8,661)
---------------------------- -------- -------- ----------- ------------ ----------- ----------
At 30th September 2022 7,874 1,312 7,762 634,320 18,935 670,203
---------------------------- -------- -------- ----------- ------------ ----------- ----------
Year ended 31st March 2022
(Audited)
At 31st March 2022 7,924 1,312 7,712 805,617 11,154 833,719
Repurchase and cancellation
of Company's own shares (50) - 50 (4,254) - (4,254)
Net (loss)/return on
ordinary activities - - - (51,364) 17,512 (33,852)
Dividends paid in the
year (note 4) - - - - (10,551) (10,551)
---------------------------- -------- -------- ----------- ------------ ----------- ----------
At 31st March 2023 7,874 1,312 7,762 749,999 18,115 785,062
---------------------------- -------- -------- ----------- ------------ ----------- ----------
(1) These reserves form the distributable reserves of the
Company and may be used to fund distribution of profits to
investors via dividend payments.
CONDENSED STATEMENT OF FINANCIAL POSITION
AT 30th SEPTEMBER 2023
(Unaudited) (Unaudited) (Audited)
30th September 30th September 31st March
2023 2022 2023
GBP'000 GBP'000 GBP'000
-------------------------------------- ---------------- ---------------- ------------
Fixed assets
Investments held at fair value
through profit or loss 710,083 642,346 839,582
-------------------------------------- ---------------- ---------------- ------------
Current assets
Debtors 5,966 5,482 16,100
Cash and cash equivalents 43,530 57,729 47,000
-------------------------------------- ---------------- ---------------- ------------
49,496 63,211 63,100
Current liabilities
Creditors: amounts falling due
within one year (75,496) (35,354) (117,620)
-------------------------------------- ---------------- ---------------- ------------
Net current (liabilities)/assets (26,000) 27,857 (54,520)
-------------------------------------- ---------------- ---------------- ------------
Total assets less current liabilities 684,083 670,203 785,062
-------------------------------------- ---------------- ---------------- ------------
Net assets 684,083 670,203 785,062
-------------------------------------- ---------------- ---------------- ------------
Capital and reserves
Called up share capital 7,874 7,874 7,874
Share premium 1,312 1,312 1,312
Capital redemption reserve 7,762 7,762 7,762
Capital reserves 644,898 634,320 749,999
Revenue reserve 22,237 18,935 18,115
-------------------------------------- ---------------- ---------------- ------------
Total shareholders' funds 684,083 670,203 785,062
-------------------------------------- ---------------- ---------------- ------------
Net asset value per share (note
5) 434.5p 425.6p 498.5p
-------------------------------------- ---------------- ---------------- ------------
CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30th SEPTEMBER 2023
(Unaudited) (Unaudited)
Six months Six months
ended ended (Audited)
30th September 30th September Year ended
2023 2022(1) 31st March 2023
GBP'000 GBP'000 GBP'000
-------------------------------------- --------------- --------------- ----------------
Cash flows from operating activities
Net loss before finance costs and
taxation (84,813) (148,594) (30,240)
Adjustment for:
Net losses on investments held
at fair value through profit or
loss 102,583 164,778 45,535
Foreign exchange gains on liquidity
fund (235) (1,819) (2,265)
Net foreign currency (gains)/losses (1,166) 1,455 2,366
Dividend income (19,519) (19,171) (22,201)
Interest income (246) - -
Scrip Dividends received as income - (188) (188)
Realised loss on foreign exchange
transactions (494) (59) (567)
Realised exchange loss/(gains)
on liquidity (123) 738 2,897
Decrease/(increase) in accrued
income and other debtors 23 (2) (40)
Increase/(decrease) in accrued
expenses 32 (20) 17
-------------------------------------- --------------- --------------- ----------------
Net cash outflow from operations
before dividends and interest (3,958) (2,882) (4,686)
-------------------------------------- --------------- --------------- ----------------
Dividends received 16,517 16,084 17,806
Interest received 147 - 1
Overseas withholding tax recovered 1,227 531 820
-------------------------------------- --------------- --------------- ----------------
Net cash inflow from operating
activities 13,933 13,733 13,941
-------------------------------------- --------------- --------------- ----------------
Purchases of investments (350,432) (258,862) (733,345)
Sales of investments 381,566 282,414 675,882
Settlement of forward currency
contracts - 184 2
-------------------------------------- --------------- --------------- ----------------
Net cash inflow/(outflow) from
investing activities 31,134 23,736 (57,461)
-------------------------------------- --------------- --------------- ----------------
Equity dividends paid (12,283) (8,661) (10,551)
Repurchase and cancellation of
the Company's own shares - (4,412) (4,412)
Repayment of bank loans (34,447) (42,528) (42,528)
Drawdown of bank loans - - 74,509
Interest paid (2,169) (536) (1,184)
-------------------------------------- --------------- --------------- ----------------
Net cash (outflow)/inflow from
financing activities (48,899) (56,137) 15,834
-------------------------------------- --------------- --------------- ----------------
Decrease in cash and cash equivalents (3,832) (18,668) (27,686)
-------------------------------------- --------------- --------------- ----------------
Cash and cash equivalents at start
of period/year 47,000 75,318 75,318
Exchange movements 362 1,079 (632)
-------------------------------------- --------------- --------------- ----------------
Cash and cash equivalents at end
of period/year 43,530 57,729 47,000
-------------------------------------- --------------- --------------- ----------------
Cash and cash equivalents consist
of:
Cash and short term deposits 497 266 447
Cash held in JPMorgan Euro Liquidity
Fund 43,033 57,463 46,553
-------------------------------------- --------------- --------------- ----------------
Total 43,530 57,729 47,000
-------------------------------------- --------------- --------------- ----------------
(1) The presentation of the Cash Flow Statement, as permitted
under FRS 102, has been changed so as to present the reconciliation
of 'net return/(loss) before finance costs and taxation' to 'net
cash inflow from operating activities' on the face of the Cash Flow
Statement. Previously, this was shown by way of note. Interest paid
has also been reclassified to financing activities, previously
shown under operating activities, as this relates to the loans
drawndown.
Other than consequential changes in presentation of the certain
cash flow items, there is no change to the cash flows as presented
in previous periods.
Analysis of change in net debt
As at Other As at
31st March non-cash 30th September
2023 Cash flows charges 2023
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ----------- ---------- --------- ---------------
Cash and cash equivalents:
Cash 447 46 4 497
Cash equivalents 46,553 (3,878) 358 43,033
--------------------------- ----------- ---------- --------- ---------------
47,000 (3,832) 362 43,530
Borrowings
Debt due within one year (109,836) 34,447 1,657 (73,732)
--------------------------- ----------- ---------- --------- ---------------
(109,836) 34,447 1,657 (73,732)
--------------------------- ----------- ---------- --------- ---------------
Net debt (62,836) 30,615 2,019 (30,202)
--------------------------- ----------- ---------- --------- ---------------
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30th SEPTEMBER 2023
1. Financial statements
The information contained within the financial statements in
this half year report has not been audited or reviewed by the
Company's auditors.
The figures and financial information for the year ended 31st
March 2023 are extracted from the latest published financial
statements of the Company and do not constitute statutory accounts
for that year. Those financial statements have been delivered to
the Registrar of Companies, including the report of the auditors
which was unqualified and did not contain a statement under either
section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
The condensed financial statements have been prepared in
accordance with the Companies Act 2006, FRS 102 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland' of
the United Kingdom Generally Accepted Accounting Practice ('UK
GAAP') and with the Statement of Recommended Practice 'Financial
Statements of Investment Trust Companies and Venture Capital
Trusts' (the revised 'SORP') issued by the Association of
Investment Companies in July 2022.
FRS 104, 'Interim Financial Reporting', issued by the Financial
Reporting Council ('FRC') in March 2015 has been applied in
preparing this condensed set of financial statements for the six
months ended 30th September 2023.
All of the Company's operations are of a continuing nature.
The accounting policies applied to this condensed set of
financial statements are consistent with those applied in the
financial statements for the year ended 31st March 2023.
3. Return/(loss) per share
(Unaudited) (Unaudited)
Six months ended Six months ended (Audited)
30th September 30th September Year ended
2023 2022 31st March 2023
GBP'000 GBP'000 GBP'000
-------------------------- ----------------- ----------------- ----------------
Return per share is based
on the following:
Revenue return 16,405 16,442 17,512
Capital loss (104,916) (167,043) (51,364)
-------------------------- ----------------- ----------------- ----------------
Total loss (88,511) (150,601) (33,852)
-------------------------- ----------------- ----------------- ----------------
Weighted average number
of shares
in issue 157,474,385 157,662,663 157,569,054
Revenue return per share 10.42p 10.43p 11.11p
Capital loss per share (66.62)p (105.95)p (32.60)p
-------------------------- ----------------- ----------------- ----------------
Total loss per share (56.20)p (95.52)p (21.49)p
-------------------------- ----------------- ----------------- ----------------
4 . Dividends paid
(Unaudited) (Unaudited)
Six months ended Six months ended (Audited)
30th September 30th September Year ended
2023 2022 31st March 2023
GBP'000 GBP'000 GBP'000
---------------------------- ----------------- ----------------- ----------------
2023 final dividend of 7.8p
(2022: 5.5p) per share 12,283 8,661 8,661
2023 interim dividend of
1.2p per share - - 1,890
---------------------------- ----------------- ----------------- ----------------
Total dividends paid in
the period/year 12,283 8,661 10,551
---------------------------- ----------------- ----------------- ----------------
All dividends paid in the period have been funded from the
revenue reserve.
An interim dividend of 2.5p (2022:1.2p) has been declared in
respect of the six months ended 30th September 2023, amounting to
GBP3,937,000.
5 . Net asset value per share
(Unaudited) (Unaudited)
Six months ended Six months ended (Audited)
30th September 30th September Year ended
2023 2022 31st March 2023
-------------------------- ----------------- ----------------- ----------------
Net assets (GBP'000) 684,083 670,203 785,062
Number of shares in issue 157,424,931 157,474,931 157,474,931
-------------------------- ----------------- ----------------- ----------------
Net asset value per share 434.5p 425.6p 498.5p
-------------------------- ----------------- ----------------- ----------------
6. Fair valuation of investments
The fair value hierarchy analysis for financial instruments held
at fair value at the period end is as follows:
(Unaudited) (Unaudited)
Six months ended Six months ended (Audited)
30th September 30th September Year ended
2023 2022 31st March 2023
-------- --------------------- --------------------- ---------------------
Assets Liabilities Assets Liabilities Assets Liabilities
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Level 1 710,083 - 642,346 - 839,582 -
-------- -------- ----------- -------- ----------- -------- -----------
Total 710,083 - 642,346 - 839,582 -
-------- -------- ----------- -------- ----------- -------- -----------
13th December 2023
For further information, please contact:
Priyanka Vijay Anand
For and on behalf of JPMorgan Funds Limited,
Company Secretary
0800 20 40 20 or +44 1268 44 44 70
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via Regulatory Information Service
this inside information is now considered to be in the public
domain.
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
ENDS
A copy of the half year report will be submitted to the FCA's
National Storage Mechanism and will shortly be available for
inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The half year will also shortly be available on the Company's
website at www.jpmeuropeandiscovery.co.uk where up to date
information on the Company, including daily NAV and share prices,
factsheets and portfolio information can also be found.
This information is provided by RNS, the news service of the
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END
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