New Star Investment Trust PLC (NSI)
New Star Investment Trust PLC: Annual Results for the year ended 30th June
2020
30-Sep-2020 / 12:05 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
NEW STAR INVESTMENT TRUST PLC
This announcement constitutes regulated information.
UNAUDITED RESULTS
FOR THE YEARED 30TH JUNE 2020
New Star Investment Trust plc (the 'Company'), whose objective is to achieve
long-term capital growth, announces its consolidated results for the year
ended 30th June 2020.
FINANCIAL HIGHLIGHTS
30th June 30th June %
2020 2019 Change
PERFORMANCE
Net assets (GBP '000) 113,885 113,971 (0.1)
Net asset value per Ordinary share 160.35p 160.47p (0.1)
Mid-market price per Ordinary share 106.00p 111.00p (4.5)
Discount of price to net asset value 33.9% 30.83% n/a
Total Return* 0.80% 2.98% n/a
IA Mixed Investment 40% - 85% Shares (0.15)% 3.66% n/a
(total return)
MSCI AC World Index (total return, 5.72% 10.30% n/a
sterling adjusted)
MSCI UK Index (total return) (15.21)% 1.68% n/a
1st July 2019 to 1st July 2018 to
30th June 2020 30th June 2019
Revenue return per Ordinary 1.87p 1.81p
share
Capital return per share (0.59)p 2.86p
Return per Ordinary share 1.28p 4.67p
TOTAL RETURN* 0.80% 2.98%
PROPOSED DIVID PER ORDINARY 1.40p 1.40p
SHARE
* The total return figure for the Group represents the revenue and capital
return shown in the Consolidated Statement of Comprehensive Income divided
by the net asset value at the beginning of the period.
CHAIRMAN'S STATEMENT
PERFORMANCE
Your Company generated a positive total return of 0.80% over the year to
30th June 2020, taking the net asset value (NAV) per ordinary share to
160.35p. By comparison, the Investment Association's Mixed Investment 40-85%
Shares Index fell 0.15%. The MSCI AC World Total Return Index rose 5.72%
while the MSCI UK Total Return Index fell 15.21%. Over the year, UK
government bonds returned 11.98%. Further information is provided in the
investment manager's report.
Your Company made a revenue profit for the year of GBP1.32 million (2019:
GBP1.28 million).
GEARINGS AND DIVID
Your Company has no borrowings. It ended the year under review with cash
representing 9.63% of its NAV and is likely to maintain a significant cash
position. In respect of the financial year to 30th June 2020, your Directors
recommend the payment of a dividend of 1.4p per share (2019: 1.4p). The
level of future dividends may, in the short term, be adversely affected by
Covid-19-related dividend cuts.
DISCOUNT
During the year under review, your Company's shares continued to trade at a
significant discount to their NAV. The Board keeps this issue under review.
PERFORMANCE FEE
In November 2019, your Company announced that the arrangement for
performance fees was not appropriate in a low interest rate environment,
with the result that the existing performance fee arrangement ceased from
1st January 2020. A performance fee of GBP623,000 (2019: GBP410,000) was payable
in respect of the year to 30th June 2020.
OUTLOOK
Over the late summer of 2020, equities appeared attractive for long-term
investors, supported by large-scale monetary and fiscal stimulus measures.
By July, leading indicators for some of the world's major economies had
risen significantly from their lows, implying that a global economic
recovery was on the horizon, and there was some positive news on vaccines
and treatments for Covid-19. Corporate bonds may also perform well as yield
spreads over sovereign bonds narrow. Resurgent Covid-19 infection rates in
some countries, tense Sino-US relations and the approaching US election may,
however, lead to renewed short-term weakness. Shortly after the year end,
your Company took some profits from investments in equity funds because of
uncertainty regarding the spread of Covid-19.
ANNUAL GENERAL MEETING
The annual general meeting will be held on 12 November 2020.
NET ASSET VALUE
Your Company's unaudited net asset value per share at 31st August 2020 was
162.94p.
INVESTMENT MANAGER'S REPORT
MARKET REVIEW
The Covid-19 pandemic and the impact of lockdowns to contain the spread of
the virus dominated financial markets during the second half of your
Company's financial year. Global equities fell 25.33% in sterling from their
high on 20th February 2020 to their 16th March low. Global equities
recovered, however, during the final quarter, extending the 4.89% gain in
sterling at the interim stage to close the year up 5.72%. The announcements
by central banks and governments of large-scale monetary and fiscal stimulus
measures softened the impact of the lockdowns on businesses and households
and reassured investors.
..
Global bonds outperformed equities over the year, rising 7.35% in sterling
as leading central banks cut interest rates to near-zero and increased
quantitative easing. UK government bonds were particularly strong, returning
11.98%. Interest rates are likely to remain low for some time. In March, the
yield spreads of corporate and high-yield bonds widened over sovereign bond
yields as investors anticipated more businesses would default, particularly
in the hard-pressed energy, retail and travel and leisure sectors. The Fed
expanded its asset purchase programme to include corporate bonds, leading to
improved liquidity and lower yields overall. Sterling corporate and
high-yield bonds returned 6.52% and 0.62% respectively over the year.
US equities outperformed, returning 10.73% in sterling, buoyed by the 41.67%
rise by US technology stocks. Technology companies benefitted from their
strong balance sheets and an acceleration in the established trends towards
home working and online shopping and entertainment.
UK equities lagged, falling 15.21% as the London market's heavy weighting in
cyclical sectors such as energy, financials and industrials proved a
headwind. Uncertainty regarding European Union-UK trade negotiations also
weighed on stocks as the government allowed the 30th June deadline for a
request to extend the Brexit transition period to lapse. Sterling lost
2.92%, 2.78% and 1.57% respectively against the dollar, yen and euro.
Equities in Europe excluding the UK underperformed, falling 3.50% in
sterling on fears that fiscally-prudent northern countries might oppose an
EU rescue package that included grants rather than loans to heavily-indebted
southern countries. Such a deal was, however, agreed shortly after your
Company's year-end. Equities in Asia excluding Japan and emerging markets
also lagged, rising 5.03% and falling 0.14% respectively in sterling despite
a leading indicator suggesting China would emerge strongly from the crisis.
Sino-US relations deteriorated as Beijing passed a new security law
governing Hong Kong and the US retaliated by revoking Hong Kong's special
status under US law.
Oil prices fell 63.66% in sterling as lower demand during the lockdowns
compounded the impact of the Russo-Saudi oil price war. By contrast, gold
rose 29.44% in sterling, benefitting from safe-haven buying and the lower
opportunity cost of holding this nil-yielding asset in an environment of
near-zero interest rates.
PORTFOLIO REVIEW
Your Company's total return over the year under review was 1.34% before
performance fees and 0.80% after performance fees. By comparison, the
Investment Association's Mixed Investment 40-85% Shares sector, comprising a
peer group of multi-asset funds that typically invest 40-85% of their assets
in global equities, fell 0.15%. The MSCI AC World Total Return Index rose
5.72% in sterling while the MSCI UK Total Return Index fell 15.21%. Your
Company benefitted from strong performance by investments in technology and
gold mining.
Performance was, however, held back by poor performance by UK equities and a
relatively low investment in global bonds.
Polar Capital Global Technology made the biggest positive contribution to
your Company's performance, rising 39.78% over the year. The fund increased
in size from $3.4 billion to $5.8 billion, with inflows totalling $1.1
billion. In response, Polar Capital soft-closed the fund in July, with the
result that only existing investors such as your Company may add to their
holdings. Fundsmith Equity, your Company's largest investment, also
benefitted from the strong performance of technology stocks, which account
for a significant proportion of its portfolio, with Facebook and Microsoft
among its 10 largest holdings. At the year end, prospects for technology
companies remained bright although increasing regulatory pressures were a
potential headwind. In June, the European Commission opened two anti-trust
investigations into Apple; in July, the chief executives of Amazon, Apple,
Facebook and Google were invited to testify before Congress as part of an
anti-trust investigation.
Underperformance by UK equities detracted from performance. Investments in
UK equity income funds have contributed significantly to your Company's
income and capacity to pay dividends. The UK equity income allocation
increased in November 2019 through an additional purchase of Chelverton UK
Equity Income. In March, following market falls, the UK equity allocation
increased further through the purchase of the SPDR UK FTSE All-Share
exchange-traded fund. In May, following a partial recovery by UK stocks from
their March through, Schroder Income, which invests in UK equities, was sold
in favour of Baillie Gifford Global Income Growth.
Higher-yielding UK stocks fell as dividends were cancelled, cut or deferred.
Dividends from UK stocks are expected to fall more than in the US and
mainland Europe because of the London market's relatively high weighting in
cyclical sectors such as financials and energy. In March, the Prudential
Regulation Authority, the banking regulator, said the seven largest UK banks
would suspend dividends and buybacks until the end of 2020. BP and Royal
Dutch Shell, which accounted for a significant proportion of all dividends
paid by UK companies, cut their dividends. In the case of Royal Dutch Shell,
this was for the first time since the Second World War. Aberforth Split
Level Income was the portfolio's worst performer, falling 35.14% as declines
by UK stocks were compounded by the manager's out-of-favour value style of
investing and gearing resulting from its zero dividend preference shares.
Man GLG UK Income fell 15.61% but Trojan Income, down only 5.58%, proved
more resilient as a result of its holdings in defensive consumer stocks such
as Reckitt Benckiser and Unilever.
BlackRock Gold & General, up 43.95%, was the second largest positive
contributor to your Company's returns. Gold mining profits are highly
sensitive to gold price movements and bullion benefitted over the year from
safe-haven buying and fears that large-scale monetary easing might result in
the debasement of fiat currencies.
Amongst your Company's lower-risk investments, Aquilus Inflection, a
euro-hedged long/short equity fund, rose 10.21% while Trojan, a multi-asset
fund with investments in defensive equities, inflation-linked bonds, gold
and cash, rose 7.52%. An investment in Chelsea Managed Monthly Income, which
has a multi-asset portfolio, was purchased to provide further
diversification and an income.
Your Company has a significant allocation to cash, held primarily in
dollars. It benefitted, therefore, from the dollar's 3.0% rise against
sterling over the year.
At the year end, your Company's private equity holdings represented
approaching 7.5% of its portfolio. Its investment in the Embark financial
services group represented more than 80% of the value of the unquoted
holdings. Following the completion of two successful equity issues to
finance two acquisitions, the Embark holding was written up by 17.5% to
reflect the latest external fundraising.
OUTLOOK
Over the late summer of 2020, the outlook for equities remained positive
given the monetary and fiscal support in place and the possibility that
further stimulus measures might be forthcoming, particularly in the US. By
July, leading indicators for some of the world's major economies had risen
significantly, implying that a global economic recovery was on the horizon.
Your Company did, however take some profits from investments in equity funds
shortly after the year end because of uncertainty regarding the spread of
Covid-19. In June, the World Health Organisation warned the worst could be
to come.
SCHEDULE OF LARGEST HOLDINGS AT 30TH JUNE 2020
Market Purchases/ Market Market % of net
value 30 Sales movement value 30 assets
June June 2020
2019
GBP'000
GBP'000
GBP'000 GBP'000
Fundsmith 7,839 - 722 8,561 7.52
Equity Fund
Polar 5,280 - 2,101 7,381 6.48
Capital
Global
Technology
Embark Group 5,942 - 1,048 6,990 6.14
SPDR FTSE UK - 5,008 536 5,544 4.87
All Share
BlackRock 3,470 - 1,515 4,985 4.38
Gold &
General
TM Crux 5,098 - (177) 4,921 4.32
European
Special
Situations
Fund
EF Brompton 4,222 - 136 4,358 3.83
Global
Consecutive
Fund
Aquilus 3,698 - 378 4,076 3.58
Infection
Fund
BlackRock 3,794 - 137 3,931 3.45
Continental
European
Income Fund
Lindsell 3,144 - 387 3,531 3.10
Train
Japanese
Equity Fund
Artemis 3,856 - (495) 3,361 2.95
Global
Income Fund
Baillie - 3,200 154 3,354 2.95
Gifford
Global
Income
Growth
MI 1,487 2,500 (974) 3,013 2.65
Chelverton
UK Equity
Income Fund
EF Brompton 2,846 - 126 2,972 2.61
Global
Equity Fund
EF Brompton 2,840 - 83 2,923 2.57
Global
Opportunitie
s Fund
EF Brompton 2,694 - 64 2,758 2.42
Global
Growth Fund
Liontrust 2,763 - (141) 2,622 2.30
Asia Income
Fund
First State 2,750 - (304) 2,446 2.15
Indian
Subcontinent
Fund
MI Brompton 2,669 - (352) 2,317 2.03
UK Recovery
Unit Trust
EF Brompton 2,246 - 68 2,314 2.03
Global
Balanced
Fund
Aberforth 3,747 - (1,494) 2,253 1.98
Split Level
Income Trust
Man GLG UK 2,767 - (561) 2,206 1.94
Income Fund
Trojan 2,379 - (215) 2,164 1.90
Income Fund
Schroder 4,795 (3,272) (1,523) _____- ____-
Income Fund
80,326 7,436 1,219 88,981 78.15
Balance not 13,456 2,009 (1,431) 14,034 12.32
held in
investments
above
Total 93,782 9,445 (212) 103,015 90.47
investments
(excluding
cash)
Cash 20,605 (9,769) 126 10,962 9.63
Other net (416) 324 - (92) (0.08)
current
assets
113,971 - (86) 113,885 100.00
The investment portfolio, excluding cash, can be further
analysed as follows:
GBP '000
Investment funds 83,363
Investment companies and exchange 10,642
traded funds
Unquoted investments 8,468
Other quoted investments 542
103,015
STRATEGIC REVIEW
The Strategic Review is designed to provide information primarily about the
Company's business and results for the year ended 30th June 2020. The
Strategic Review should be read in conjunction with the Chairman's Statement
and the Investment Manager's Report, which provide a review of the year's
investment activities of the Company and the outlook for the future.
STATUS
The Company is an investment company under section 833 of the Companies Act
2006. It is an Approved Company under the Investment Trust (Approved
Company) (Tax) Regulations 2011 (the 'Regulations') and conducts its affairs
in accordance with those Regulations so as to retain its status as an
investment trust and maintain exemption from liability to United Kingdom
capital gains tax.
The Company is a small registered Alternative Investment Fund Manager under
the European Union Markets in Financial Instruments Directive.
PURPOSE CULTURE AND VALUES
The Directors acknowledge the expectation under the Code that they formally
define a purpose for the Company. The Directors have reviewed this
requirement and consider that the Company's purpose is to deliver the
Company's stated investment objective to achieve long-term capital growth
for the benefit of its investors.
Similarly, the Directors have also considered the Company's culture and
values in line with Code requirements. The Board has formed the view that as
the Company has no direct employees, and with operational management
outsourced to the Investment Manager, the Administrator and the Company
Secretary, the Company's culture and values have to be those of the Board.
Having a stable composition and established working practices, the Board is
defined by experienced membership, trust and robust investment challenge.
These are therefore the key characteristics of the Company's culture and
values.
STAKEHOLDER RESPONSIBILITIES (S.172 STATEMENT UNDER COMPANIES ACT 2006)
The Directors are aware of their responsibilities to stakeholders under both
the Code and legislation through regular governance updates from the Company
Secretary. As a UK listed investment trust, the Directors outsource
operational management of the Company, including day to day management of
the investment portfolio, to third parties. As a consequence, the Directors
consider their key stakeholder groups to be limited to the Company's
shareholders, its third party advisers and service providers, and individual
board members.
The Company's Articles of Association, the Board's commitment to follow the
principles of the UK Corporate Governance Code issued by the Financial
Reporting Council in July 2018 ('the code') and the involvement of the
independent Company Secretary in board matters enable the Directors to meet
their responsibilities towards individual shareholder groups and board
members. Governance procedures are in place which allow both investors and
directors to ask questions or raise concerns appropriately. The Board is
satisfied that those governance procedures mean the Company can act fairly
between individual shareholders and takes account of Mr Duffield's
significant shareholding. In considering the payment of the minimum dividend
required to maintain investment trust tax status, the recommendations to
vote in favour of the resolutions at the AGM, the change to the performance
fee arrangements and the provision of temporary liquidity facilities, the
Board assessed the potential benefits to shareholders and the manager of the
investment portfolio.
The Board also regularly considers the performance of its independent third
party service providers. Those third party service providers in turn have
regular opportunities to report on matters meriting the attention of the
Board, including in relation to their own performance. The Board is
therefore confident that its responsibilities to each of its key stakeholder
groups are being discharged effectively.
As the Company does not have any employees, the Board does not consider it
necessary to establish means for employee engagement with the Board as
required by the latest version of the Code.
INVESTMENT OBJECTIVE AND POLICY
Investment Objective
The Company's investment objective is to achieve long-term capital growth.
Investment Policy
The Company's investment policy is to allocate assets to global investment
opportunities through investment in equity, bond, commodity, real estate,
currency and other markets. The Company's assets may have significant
weightings to any one asset class or market, including cash.
The Company will invest in pooled investment vehicles, exchange traded
funds, futures, options, limited partnerships and direct investments in
relevant markets. The Company may invest up to 15% of its net assets in
direct investments in relevant markets.
The Company will not follow any index with reference to asset classes,
countries, sectors or stocks. Aggregate asset class exposure to any one of
the United States, the United Kingdom, Europe ex UK, Asia ex Japan, Japan or
Emerging Markets and to any individual industry sector will be limited to
50% of the Company's net assets, such values being assessed at the time of
investment and for funds by reference to their published investment policy
or, where appropriate, the underlying investment exposure.
The Company may invest up to 20% of its net assets in unlisted securities
(excluding unquoted pooled investment vehicles) such values being assessed
at the time of investment.
The Company will not invest more than 15% of its net assets in any single
investment, such values being assessed at the time of investment.
Derivative instruments and forward foreign exchange contracts may be used
for the purposes of efficient portfolio management and currency hedging.
Derivatives may also be used outside of efficient portfolio management to
meet the Company's investment objective. The Company may take outright short
positions in relation to up to 30% of its net assets, with a limit on short
sales of individual stocks of up to 5% of its net assets, such values being
assessed at the time of investment.
Derivative instruments and forward foreign exchange contracts may be used
for the purposes of efficient portfolio management and currency hedging.
Derivatives may also be used outside of efficient portfolio management to
meet the Company's investment objective. The Company may take outright short
positions in relation to up to 30% of its net assets, with a limit on short
sales of individual stocks of up to 5% of its net assets, such values being
assessed at the time of investment.
The Company may borrow up to 30% of net assets for short-term funding or
long-term investment purposes.
No more than 10%, in aggregate, of the value of the Company's total assets
may be invested in other closed-ended investment funds except where such
funds have themselves published investment policies to invest no more than
15% of their total assets in other listed closed-ended investment funds.
Information on the Company's portfolio of assets with a view to spreading
investment risk in accordance with its investment policy is set out above.
FINANCIAL REVIEW
Net assets at 30th June 2020 amounted to GBP113,885,000 compared with
GBP113,971,000 at 30th June 2019. In the year under review, the NAV per
Ordinary share decreased by 0.1% from 160.47p to 160.35p, after paying a
dividend of 1.4p per share.
The Group's gross revenue increased to GBP2,419,000 (2019: GBP2,239,000). In
2019 and 2020 the Company increased its investment in income focused funds
resulting in an increase in gross income in both years. The year under
review was not impacted significantly by the Covid-19 pandemic. After
deducting expenses and taxation, the revenue profit for the year was
GBP1,325,000 (2019: GBP1,285,000).
Total expenses for the year amounted to GBP1,717,000 (2019: GBP1,364,000),
mainly as a result of an increased performance fee becoming payable. In the
year under review the investment management fee amounted to GBP697,000 (2019:
GBP688,000). A performance fee of GBP623,000 (2019; GBP410,000) was payable in
respect of the year under review. The performance fee has been allocated to
the Capital account in accordance with the Company's accounting policy.
Further details on the Company's expenses may be found in notes 3 and 4
below.
Dividends have not formed a central part of the Company's investment
objective. The increased investment in income focused funds has enabled the
Directors to declare an increased dividend in recent years. The Directors
propose a final dividend of 1.40p per Ordinary share in respect of the year
ended 30th June 2020 (2019: 1.40p). If approved at the Annual General
Meeting, the dividend will be paid on 30th November 2020 to shareholders on
the register at the close of business on 6th November 2020 (ex-dividend 5th
November 2020).
The primary source of the Company's funding is shareholder funds.
While the future performance of the Company is dependent, to a large degree,
on the performance of international financial markets, which in turn are
subject to many external factors, the Board's intention is that the Company
will continue to pursue its stated investment objective in accordance with
the strategy outlined above. Further comments on the short-term outlook for
the Company are set out in the Chairman's Statement and the Investment
Manager's report.
Throughout the year the Group's investments included seven funds managed by
the Investment Manager (2019: seven). No investment management fees were
payable directly by the Company in respect of these investments.
PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS
In order to measure the success of the Company in meeting its objectives,
and to evaluate the performance of the Investment Manager, the Directors
review at each meeting: net asset value, income and expenditure, asset
allocation and attribution, share price of the Company and the discount. The
Directors take into account a number of different indicators as the Company
does not have a formal benchmark, and performance against these is shown in
the Financial Highlights.
Performance is discussed in the Chairman's Statement and Investment
Manager's Report.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks identified by the Board, and the steps the Board takes
to mitigate them, are discussed below. The audit committee reviews existing
and emerging risks on a six monthly basis. The Board has closely monitored
the societal, economic and market focused implications of the events in 2020
to date, and have accordingly added a new macro-economic event risk to
reflect these considerations:
Investment strategy
Inappropriate long-term strategy, asset allocation and fund selection could
lead to underperformance. The Board discusses investment performance at each
of its meetings and the Directors receive reports detailing asset
allocation, investment selection and performance.
Business conditions and general economy
The Company's future performance is heavily dependent on the performance of
different equity and currency markets. The Board cannot mitigate the risks
arising from adverse market movements. However, diversification within the
portfolio will reduce the impact. Further information is given in portfolio
risks below.
Macro-economic event risk
The Covid pandemic has been felt globally in 2020. The scale and potential
adverse impact of a macro-economic event, such as the Covid pandemic, has
highlighted the possibility of a number of identified risks such as market
risk, currency risk, investment liquidity risk and operational risk having
an adverse impact at the same time. The risk may impact on: the value of the
Company's investment portfolio, its liquidity, meaning investments cannot be
realised quickly, or the Company's ability to operate if the Company's
suppliers face financial or operational difficulties. The Directors closely
monitor these areas and currently maintain a significant cash balance.
Portfolio risks - market price, foreign currency and interest rate risks
Investment returns will be influenced by interest rates, inflation, investor
sentiment, availability/cost of credit and general economic and market
conditions in the UK and globally. A significant proportion of the portfolio
is in investments denominated in foreign currencies and movements in
exchange rates could significantly affect their sterling value. The
Investment Manager takes all these factors into account when making
investment decisions but the Company does not normally hedge against foreign
currency movements. The Board's policy is to hold a spread of investments in
order to reduce the impact of the risks arising from the above factors by
investing in a spread of asset classes and geographic regions.
Net asset value discount
The discount in the price at which the Company's shares trade to net asset
value means that shareholders cannot realise the real underlying value of
their investment. Over the last few years the Company's share price has been
at a significant discount to the Company's net asset value. The Directors
review regularly the level of discount, however given the investor base of
the Company, the Board is very restricted in its ability to influence the
discount to net asset value.
Investment Manager
The quality of the team employed by the Investment Manager is an important
factor in delivering good performance and the loss of key staff could
adversely affect returns. A representative of the Investment Manager attends
each Board meeting and the Board is informed if any major changes to the
investment team employed by the Investment Manager are proposed. The
Investment Manager regularly informs the Board of developments and any key
implications for either the Investment Strategy or the investment portfolio.
Tax and regulatory risks
A breach of The Investment Trust (Approved Company) (Tax) Regulations 2011
(the 'Regulations') could lead to capital gains realised within the
portfolio becoming subject to UK capital gains tax. A breach of the FCA
Listing Rules could result in suspension of the Company's shares, while a
breach of company law could lead to criminal proceedings, financial and/or
reputational damage. The Board employs Brompton Asset Management LLP as
Investment Manager, and Maitland Administration Services Limited as
Secretary and Administrator, to help manage the Company's legal and
regulatory obligations.
Operational
Disruption to, or failure of, the Investment Manager's or Administrator's
accounting, dealing or payment systems, or the Custodian's records, could
prevent the accurate reporting and monitoring of the Company's financial
position. The Company is also exposed to the operational risk that one or
more of its suppliers may not provide the required level of service. How the
Board monitors its service providers, with an emphasis on their business
interruption procedures, is set out in the Corporate Governance Statement.
The Directors confirm that they have carried out an assessment of the risks
facing the Company, including those that would threaten its business model,
future performance, solvency and liquidity.
VIABILITY STATEMENT
The assets of the Company consist mainly of securities that are readily
realisable or cash and it has no significant liabilities and no financial
commitments. In the last few years investment income has exceeded annual
expenditure and current liquid net assets cover current annual expenses for
many years. Accordingly, the Company is of the opinion that it has adequate
financial resources to continue in operational existence for the long term
which is considered to be in excess of five years. Five years is considered
a reasonable period for investors when making their investment decisions. In
reaching this view the Directors reviewed the anticipated level of annual
expenditure against the cash and liquid assets within the portfolio. The
Directors have also considered the risks the Company faces, and have
considered the economic and operational implications of third party
suppliers arising from the Covid-19 pandemic in finalising this viability
statement.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ISSUES
The Company has no employees, with day-to-day operational and administration
of the Company being delegated by the Board to the Independent Investment
Manager and the Administrator. The Company's portfolio is managed in
accordance with the investment objective and policy approved by
shareholders. The Company is primarily invested in investment funds and
exchange traded funds, where it has no direct dialogue with underlying
investments. Environmental, social and governance considerations of
underlying investee companies are not a key driver when evaluating existing
and potential investments.
GREENHOUSE GAS EMISSIONS
As the Company has no premises, properties or equipment of its own, the
Directors deem the Company to be exempt from making any disclosures under
the Companies Act 2006 (Strategic Reports and Directors' Reports)
Regulations 2013.
STREAMLINED ENERGY AND CARBON REPORTING
The Company is categorised as a lower energy user under the HMRC
Environmental Reporting Guidelines March 2019 and is therefore not required
to make the detailed disclosures of energy and carbon information set out
within the guidelines. The Company's energy and carbon information is not
therefore disclosed in this report.
MODERN SLAVERY ACT
The Directors rely on undertakings given by its independent third party
advisers that those companies continue to have no instances of modern
slavery either within their businesses or supply chains. Given the financial
services focus and geographical location of all third-party suppliers to the
Company, the Directors perceive the risks of a contravention of the
legislation to be very low.
GER DIVERSITY
The Board of Directors comprises three male directors, and currently no
female board members. Composition of the Board has not changed since 2017,
and the Board has benefitted from stable membership and strong working
relationships between individual directors in that time. For this reason,
the Board does not currently anticipate making future changes.
The Board is committed to the benefits of diversity, including gender,
ethnicity and background when considering new appointments to the Board,
whilst always seeking to base any decision on merit, measured by knowledge,
experience and ability to make a positive contribution to the Board's
decision making.
LISTING RULE 9.8.4
Listing rule 9.8.4 required the Company to include certain information in a
single identifiable section of the Annual Report or a cross-reference table
indicating where the information is set out. The Directors confirm that
there were no disclosures to be made in this regard.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AT 30TH JUNE 2020
Year ended Year ended
30th June 2020 30th June 2019
Revenue Capital Revenue Capital
Return Return Return Return
GBP '000 GBP '000
Total Total
GBP '000 GBP GBP '000 GBP
'000 '000
Notes
INVESTMENT 2 2,169 - 2,169 1,890 - 1,890
INCOME
Other 2 250 - 250 349 - 349
operating
income
2,419 - 2,419 2,239 - 2,239
GAINS AND
LOSSES ON
INVESTMENTS
(Losses)/gains
on investments
at fair value
through profit
or loss 9 - (212) (212) - 1,992 1,992
Other exchange - 414 414 - 443 443
gains
Trail rebates - 4 4 - 5 5
2,419 206 2,625 2,239 2,440 4,679
EXPENSES
Management and 3 (697) (623) (1,32 (688) (410) (1,09
performance 0) 8)
fees
Other expenses 4 ( 397) - (397) (266) - (266)
( ( 623) (1,71 (954) (410) (1,36
1,094) 7) 4)
PROFIT BEFORE 1,325 (417) 908 1,285 2,031 3,315
TAX
Tax 5 - - - - - -
PROFIT FOR THE 1,325 (417) 908 1,285 2,031 3,315
YEAR
EARNINGS PER
SHARE
Ordinary 7 1.87p (0.59)p 1.28p 1.81p 2.86p 4.67p
shares (pence)
The total column of this statement represents the Group's profit and loss
account, prepared in accordance with IFRS, as adopted by the European Union.
The supplementary Revenue Return and Capital Return columns are both
prepared under guidance published by the Association of Investment
Companies. All revenue and capital items in the above statement derive from
continuing operations.
The Company did not have any income or expense that was not included in
'Profit for the year'. Accordingly, the 'Profit for the year' is also the
'Total comprehensive income for the year', as defined in IAS1 (revised) and
no separate Statement of Comprehensive Income has been presented.
No operations were acquired or discontinued during the year.
All income is attributable to the equity holders of the parent company.
There are no minority interests.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30TH JUNE
2020
Note Share Share Special Retained
premium reserve earnings
capital Total
GBP '000 GBP '000 GBP '000
GBP '000 GBP '000
AT 30TH 710 21,573 56,908 34,780 113,971
JUNE 2019
Total - - - 908 908
comprehensi
ve income
for the
year
Dividend 8 - - - (994) (994)
paid
AT 30TH 710 21,573 56,908 34,694 113,885
JUNE 2020
Included within Retained earnings were GBP2,018,000 of Company reserves
available for distribution.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30TH JUNE
2019
Note Share Share Special Retained
premium reserve earnings
capital Total
GBP '000 GBP '000 GBP '000
GBP '000 GBP '000
AT 30TH 710 21,573 56,908 32,175 111,366
JUNE 2018
Total - - - 3,315 3,315
comprehensi
ve income
for the
year
Dividend 8 - - - (710) (710)
paid
AT 30TH 710 21,573 56,908 34,780 113,971
JUNE 2019
Included within Retained earnings were GBP1,687,000 of Company reserves
available for distribution.
CONSOLIDATED BALANCE SHEET AT 30TH JUNE 2020
Notes 30th June 30th June
2020 2019
GBP '000 GBP '000
NON-CURRENT ASSETS
Investments at fair value through 9 103,015 93,782
profit or loss
CURRENT ASSETS
Other receivables 11 137 220
Cash and cash equivalents 12 10,962 20,605
11,099 20,825
TOTAL ASSETS 114,114 114,607
CURRENT LIABILITIES
Other payables 13 (229) (636)
TOTAL ASSETS LESS CURRENT LIABILITIES 113,885 113,971
NET ASSETS 113,885 113,971
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
Called-up share capital 14 710 710
Share premium 15 21,573 21,573
Special reserve 15 56,908 56,908
Retained earnings 15 34,694 34,780
TOTAL EQUITY 113,885 113,971
NET ASSET VALUE PER ORDINARY SHARE 16 160.35p 160.47p
CONSOLIDATED CASH FLOW STATEMENTS AT 30TH JUNE 2020
Year ended Year ended Year Year ended
ended
30th June 30th June 30th June
30th
June
2020 2020 2019
2019
Group Company Company
Group
Notes GBP '000 GBP '000 GBP '000
GBP
'000
NET CASH INFLOW
FROM OPERATING
ACTIVITIES
382 382 1,334 1,334
INVESTING
ACTIVITIES
Purchase of (12,725) (12,725) (4,34 (4,340)
investments 0)
Sale of investments 3,280 3,280 8,851 8,851
NET CASH
(OUTFLOW)/INFLOW
FROM INVESTING
ACTIVITIES
(9,445) (9,445) 4,511 4,511
FINANCING
Equity dividends 8 (994) (994) (710) (710)
paid
NET CASH OUTFLOW (994) (994) (710) (710)
AFTER FINANCING
(DECREASE)/INCREASE (10,057) (10,057) 5,135 5,135
IN CASH
RECONCILIATION OF
NET CASH FLOW TO
MOVEMENT IN CASH &
CASH EQUIVALENTS
(Decrease)/Increase
in cash resulting
from cash flows
(10,057) (10,057) 5,135 5,135
Exchange movements 414 414 443 443
Movement in net (9,643) (9,643) 5,578 5,578
funds
Net funds at start 20,605 20,605 15,02 15,027
of the year 7
CASH & CASH 17 10,962 10,962 20,60 20,605
EQUIVALENTS AT 5
OF YEAR
RECONCILIATION OF
PROFIT BEFORE
FINANCE COSTS AND
TAXATION TO NET
CASH FLOW FROM
OPERATING
ACTIVITIES
Profit before 908 908 3,315 3,315
finance costs and
taxation*
(Losses)/Gains on 212 212 (1,99 (1,992)
investments 2)
Exchange (414) (414) (443) (443)
differences
Capital trail (4) (4) (5) (5)
rebates
Net revenue gains
before finance
costs and taxation
702 702 875 875
Decrease in debtors 81 81 43 43
(Decrease)/Increase (407) (407) 402 402
in creditors
Taxation 2 2 9 9
Capital trail 4 4 5 5
rebates
NET CASH INFLOW
FROM OPERATING
ACTIVITIES
382 382 1,334 1,334
*Includes dividends received in cash of GBP1,977,000 (2019: GBP1,599,000),
accumulation income of GBP245,000 (2019: GBP278,000) and interest received of
GBP270,000 (2019: GBP408,000).
NOTES TO THE ACCOUNTS FOR THE YEARED 30TH JUNE 2020
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with International
Financial Reporting Standards ('IFRS'). These comprise standards and
interpretations approved by the International Accounting Standards Board
('IASB'), together with interpretations of the International Accounting
Standards and Standing Interpretations Committee ('IASC') that remain in
effect, and to the extent that they have been adopted by the European Union.
These financial statements are presented in pounds sterling, the Group's
functional currency, being the currency of the primary economic environment
in which the Group operates, rounded to the nearest thousand.
(a) Basis of preparation: The financial statements have been prepared on a
going concern basis (see 1 (p)). The principal accounting policies adopted
are set out below.
Where presentational guidance set out in the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies and Venture
Capital Trusts' ('SORP') issued by the Association of Investment Companies
('AIC') in November 2014 and updated in February 2018 and October 2019 with
consequential amendments is consistent with the requirements of IFRS, the
Directors have sought to prepare the financial statements on a basis
compliant with the recommendations of the SORP.
(b) Basis of consolidation: The consolidated financial statements include
the accounts of the Company and its subsidiary made up to 30th June 2020. No
statement of comprehensive income is presented for the parent company as
permitted by Section 408 of the Companies Act 2006.
The Company is an investment entity as defined by IFRS 10 and assets are
held at their fair value. The consolidated accounts include subsidiaries
which are an integral part of the Group and not investee companies.
Subsidiaries are consolidated from the date of their acquisition, being the
date on which the Company obtains control, and continue to be consolidated
until the date that such control ceases. The financial statements of the
subsidiary used in the preparation of the consolidated financial statements
are based on consistent accounting policies. All intra-group balances and
transactions, including unrealised profits arising therefrom, are
eliminated. Subsidiaries are valued at fair value, which is considered to be
their NAV, in the accounts of the Company.
(c) Presentation of Statement of Comprehensive Income: In order to better
reflect the activities of an investment trust company and in accordance with
guidance issued by the AIC, supplementary information which analyses the
consolidated statement of comprehensive income between items of a revenue
and capital nature has been presented alongside the consolidated statement
of comprehensive income.
In accordance with the Company's Articles of Association, net capital
returns may not be distributed by way of a dividend. Additionally, the net
revenue profit is the measure the Directors believe is appropriate in
assessing the Group's compliance with certain requirements set out in the
Investment Trust (Approved Company) (Tax) Regulations 2011.
(d) Use of estimates: The preparation of financial statements requires the
Group to make estimates and assumptions that affect items reported in the
consolidated and company balance sheets and consolidated statement of
comprehensive income and the disclosure of contingent assets and liabilities
at the date of the financial statements. Although these estimates are based
on the Directors' best knowledge of current facts, circumstances and, to
some extent, future events and actions, the Group's actual results may
ultimately differ from those estimates, possibly significantly. The most
significant estimate relates to the valuation of unquoted investments (see
note 18(h)).
(e) Revenue: Dividends and other such revenue distributions from investments
are credited to the revenue column of the consolidated statement of
comprehensive income on the day in which they are quoted ex-dividend. Where
the Company has elected to receive its dividends in the form of additional
shares rather than in cash and the amount of the cash dividend is recognised
as income, any excess in the value of the shares received over the amount
recognised is credited to the capital reserve. Deemed revenue from offshore
funds is credited to the revenue account. Interest on fixed interest
securities and deposits is accounted for on an accruals basis.
(f) Expenses: Expenses are accounted for on an accruals basis. Management
fees, administration and other expenses, with the exception of transaction
charges, are charged to the revenue column of the consolidated statement of
comprehensive income. Performance fees and transaction charges are charged
to the capital column of the consolidated statement of comprehensive income.
(g) Investments held at fair value: Purchases and sales of investments are
recognised and derecognised on the trade date where a purchase or sale is
under a contract whose terms require delivery within the timeframe
established by the market concerned, and are initially measured at fair
value.
All investments are classified as held at fair value through profit or loss
on initial recognition and are measured at subsequent reporting dates at
fair value, which is either the bid price or the last traded price,
depending on the convention of the exchange on which the investment is
quoted. Investments in units of unit trusts or shares in OEICs are valued at
the bid price for dual priced funds, or single price for non-dual priced
funds, released by the relevant investment manager. Unquoted investments are
valued by the Directors at the balance sheet date based on recognised
valuation methodologies, in accordance with International Private Equity and
Venture Capital ('IPEVC') Valuation Guidelines such as dealing prices or
third party valuations where available, net asset values and other
information as appropriate.
(h) Taxation: The charge for taxation is based on taxable income for the
year. Withholding tax deducted from income received is treated as part of
the taxation charge against income. Taxation deferred or accelerated can
arise due to temporary differences between the treatment of certain items
for accounting and taxation purposes. Full provision is made for deferred
taxation under the liability method on all temporary differences not
reversed by the Balance Sheet date. No deferred tax provision is made
against deemed reporting offshore funds. Deferred tax assets are only
recognised when there is more likelihood than not that there will be
suitable profits against which they can be applied.
(i) Foreign currency: Assets and liabilities denominated in foreign
currencies are translated at the rates of exchange ruling at the balance
sheet date. Foreign currency transactions are translated at the rates of
exchange applicable at the transaction date. Exchange gains and losses are
taken to the revenue or capital column of the consolidated statement of
comprehensive income depending on the nature of the underlying item.
(j) Capital reserve: The following are accounted for in this reserve:
- gains and losses on the realisation of investments together with the
related taxation effect;
- foreign exchange gains and losses on capital transactions, including those
on settlement, together with the related taxation effect;
- revaluation gains and losses on investments;
- performance fees payable to the investment manager; and
- trail rebates received from the managers of the Company's investments.
The capital reserve is not available for the payment of dividends.
(k) Revenue reserve: This reserve includes net revenue recognised in the
revenue column of the Statement of Comprehensive Income.
(l) Special reserve: The special reserve can be used to finance the
redemption and/or purchase of shares in issue.
(m) Cash and cash equivalents: Cash and cash equivalents comprise current
deposits and balances with banks. Cash and cash equivalents may be held for
the purpose of either asset allocation or managing liquidity.
(n)Dividends payable: Dividends are recognised from the date on which they
are irrevocably committed to payment.
(o) Segmental Reporting: The Directors consider that the Group is engaged in
a single segment of business with the primary objective of investing in
securities to generate long term capital growth for its shareholders.
Consequently no business segmental analysis is provided.
(p) Going concern basis of preparation: The Directors considered the impact
of Covid-19 pandemic and the impact this may have on the Group, in
particular noting that, in addition to its significant cash balances the
Group holds a highly liquid portfolio, which could be sold. The Directors
also reviewed scenarios of a significant drop in value of the assets and
falls in income received. They have also considered the resiliency of the
Group's key service providers and are satisfied that they have worked
adequestly during the Covid-19 pandemic and are sustainable. Therefore, the
going concern basis has been adopted in preparing the Group's Financial
statements.
(q) New standards, interpretations and amendments effective for the periods
beginning on or after 1 July 2019: There are no new standards, amendments to
standards and interpretations that are relevant to the Group and should be
disclosed.
(r) New standards, interpretations and amendments issued which are not yet
effective and applicable for the periods beginning on or after 1 July 2020:
The following amendments to standards issued but are not yet effective are
relevant and applicable to the Group, although they have no impact on the
financial statements of the Group:
- IFRS 3: Definition of a Business
- Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest Rate Benchmark Reform
- Amendments to IAS 1 and IAS 8 - Definition of Material
2. INVESTMENT INCOME
Year ended Year ended
30th June 30th June
2020 2019
GBP '000 GBP '000
INCOME FROM INVESTMENTS
UK net dividend income 1,844 1,691
Unfranked investment income 325 199
2,169 1,890
OTHER OPERATING INCOME
Bank interest receivable 250 336
Loan interest income - 13
250 349
TOTAL INCOME COMPRISES
Dividends 2,169 1,890
Other income 250 349
2,419 2,239
The above dividend and interest income has been included in the profit
before finance costs and taxation included in the cash flow statements.
3. MANAGEMENT AND PERFORMANCE FEES
Year ended Year ended
30th June 2020 30th June 2019
Revenue Capital Total Revenue Capital Total
GBP '000 GBP '000
GBP '000 GBP '000 GBP '000 GBP '000
Investment 697 - 697 688 - 688
management
fee
Performance - 623 623 - 410 410
fee
697 623 1,320 688 410 1,098
At 30th June 2020 there were amounts accrued of GBP177,000 (2019: GBP177,000)
for investment management fees and GBPnil (2018: GBP410,000) for performance
fees.
4. OTHER EXPENSES
Year ended Year ended
30th June 30th June
2020 2019
GBP '000 GBP '000
Directors' remuneration 65 50
Administrative and secretarial fee 95 95
Auditors' remuneration
- Audit 32 32
- Interim review 8 8
Other 197 81
397 266
Allocated to:
- Revenue 397 266
- Capital - -
397 266
5. TAXATION
(a) Analysis of tax charge for the year:
Year ended Year ended
30th June 2020 30th June 2019
Revenue Capital Revenue Capital
Return Return Return Return
GBP '000 GBP '000
Total Total
GBP '000 GBP '000 GBP '000 GBP '000
Overseas 1 - 1 3 - 3
tax
Recoverable (1) - (1) (3) - (3)
income tax
Total - - - - - -
current tax
for the
year
Deferred - - - - - -
tax
Total tax - - - - - -
for the
year (note
5b)
(b) Factors affecting tax charge for the year:
The charge for the year of GBPnil (2019: GBPnil) can be reconciled to the profit
per the consolidated statement of comprehensive income as follows:
Year ended Year ended
30th June 30th June
2020 2019
GBP '000 GBP '000
Total profit before tax 908 3,315
Theoretical tax at the UK corporation tax 172 630
rate of 19.00% (2019: 19.00%)
Effects of:
Non-taxable UK dividend income (350) (321)
Gains and losses on investments that are (38) (463)
not taxable
Excess expenses not utilised 249 154
Overseas dividends which are not taxable 33 -
Overseas tax 1 3
Recoverable income tax (1) (3)
Total tax for the year - -
Due to the Company's tax status as an investment trust and the intention to
continue meeting the conditions required to maintain approval of such status
in the foreseeable future, the Company has not provided tax on any capital
gains arising on the revaluation or disposal of investments.
There is no deferred tax (2019: GBPnil) in the capital account of the Company.
There is no deferred tax charge in the revenue account (2019: GBPnil).
At the year-end there is an unrecognised deferred tax asset of GBP929,000
(2019: GBP520,000) based on the enacted tax rates of 19% for financial years
beginning 1st April 2020, as a result of excess expenses.
6. COMPANY RETURN FOR THE YEAR
The Company's total return for the year was GBP908,000 (2019: GBP3,315,000).
7. RETURN PER ORDINARY SHARE
Total return per Ordinary share is based on the Group total return on
ordinary activities after taxation of GBP908,000 (2019: GBP3,315,000) and on
71,023,695 (2019: 71,023,695) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the year.
Revenue return per Ordinary share is based on the Group revenue profit on
ordinary activities after taxation of GBP1,325,000 (2019: GBP1,285,000) and on
71,023,695 (2019: 71,023,695) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the year.
Capital return per Ordinary share is based on net capital (losses)/gains for
the year of GBP(417,000) (2019: GBP2,031,000) and on 71,023,695 (2019:
71,023,695) Ordinary shares, being the weighted average number of Ordinary
shares in issue during the year.
8. DIVIDS ON EQUITY SHARES
Amounts recognised as distributions in the year:
Year ended Year
ended
30th June
30th June
2020
2019
GBP '000
GBP '000
Dividends paid during the year 994 710
Dividends payable in respect of the year
ended:
30th June 2020: 1.4p (2019: 1.4p) per share 994 994
It is proposed that a dividend of 1.4p per share will be paid in respect of
the current financial year.
9. INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
Year ended Year ended
30th June 30th June
2020 2019
GBP '000 GBP '000
GROUP AND COMPANY 103,015 93,782
ANALYSIS OF INVESTMENT
PORTFOLIO - GROUP AND COMPANY
Quoted* Unquoted Total
GBP '000 GBP '000 GBP '000
Opening book cost 60,372 8,448 68,820
Opening investment holding 26,024 (1,062) 24,962
gains/(losses)
Opening valuation 86,396 7,386 93,782
Movement in period
Purchases at cost 12,725 - 12,725
Sales
- Proceeds (3,272) (8) (3,280)
- Realised (losses)/gains on sales (2,094) 8 (2,086)
Movement in investment holding gains 792 1,082 1,874
for the year
Closing valuation 94,547 8,468 103,015
Closing book cost 67,731 8,448 76,179
Closing investment holding gains 26,816 20 26,836
Closing valuation 94,547 8,468 103,015
* Quoted investments include unit trust and OEIC funds and one monthly
priced fund.
Year ended Year ended
30th June 30th June
2020 2019
GBP '000 GBP '000
ANALYSIS OF CAPITAL GAINS AND LOSSES
Realised (losses)/gains on sales of (2,086) 4,175
investments
Increase/( Decrease) in investment holding 1,874 (2,183)
gains
Net (losses)/gains on investments (212) 1,992
attributable to ordinary shareholders
Transaction costs
The purchase and sale proceeds figures above include transaction costs on
purchases of GBP2,002 (2019: GBP3,260) and on sales of GBPnil (2019: GBP638).
10. INVESTMENT IN SUBSIDIARY UNDERTAKING
The Company owns the whole of the issued share capital (GBP1) of JIT
Securities Limited, a company registered in England and Wales.
The financial position of the subsidiary is summarised as follows:
Year ended Year ended
30th June 30th June
2020 2019
GBP '000 GBP '000
Net assets brought forward 506 506
Profit for year - -
Net assets carried forward 506 506
11. OTHER RECEIVABLES
30th June 30th June 30th June 30th June
2020 2020 2019 2019
Group Company Group Company
GBP '000 GBP '000 GBP '000 GBP '000
Prepayments and accrued 133 133 214 214
income
Taxation 4 4 6 6
137 137 220 220
12. CASH AND CASH EQUIVALENTS
30th June 30th June 30th 30th June
June
2020 2020 2019
2019
Group Company Company
Group
GBP '000 GBP '000 GBP '000
GBP '000
Cash at bank and on 10,962 10,962 20,605 20,605
deposit
13. OTHER PAYABLES
30th June 30th June 30th June 30th June
2020 2020 2019 2019
Group Company Group Company
GBP '000 GBP '000 GBP '000 GBP '000
Accruals 229 229 636 636
Amounts owed to - 506 - 506
subsidiary undertakings
229 735 636 1,142
14. CALLED UP SHARE CAPITAL
30th June 30th June
2020 2019
GBP '000 GBP '000
Authorised
305,000,000 (2019: 305,000,000) Ordinary 3,050 3,050
shares of GBP0.01 each
Issued and fully paid
71,023,695 (2019: 71,023,695) Ordinary 710 710
shares of GBP0.01 each
15. RESERVES
Share Special Retained
Premium Reserve earnings
account
GBP '000 GBP '000 GBP '000
GROUP
At 30th June 2019 21,573 56,908 34,780
Increase in investment holding gains - - 1,874
Net losses on realisation of - - (2,086)
investments
Gains on foreign currency - - 414
Performance fee - - (623)
Trail rebates - - 4
Retained revenue profit for year - - 1,325
Dividend paid (994)
At 30th June 2020 21,573 56,908 34,694
Share Special Retained
Premium Reserve earnings
account
GBP '000 GBP '000 GBP '000
COMPANY
At 30th June 2019 21,573 56,908 34,780
Increase in investment holding gains - - 1,874
Net losses on realisation of - - (2,086)
investments
Gains on foreign currency - - 414
Performance fee - - (623)
Trail rebates - - 4
Retained revenue profit for year - - 1,325
Dividend paid (994)
At 30th June 2020 21,573 56,908 34,694
The components of retained earnings are set out below:
30th June 30th June
2020 2019
GBP '000 GBP '000
GROUP
Capital reserve - realised 5,686 7,977
Capital reserve - revaluation 26,836 24,962
Revenue reserve 2,172 1,841
34,694 34,780
COMPANY
Capital reserve - realised 5,333 7,625
Capital reserve - revaluation 27,343 25,468
Revenue reserve 2,018 1,687
34,694 34,780
16. NET ASSET VALUE PER ORDINARY SHARE
The net asset value per Ordinary share is calculated on net assets of
GBP113,885,000 (2018: GBP113,971,000) and 71,023,695 (2098: 71,023,695) Ordinary
shares in issue at the year end.
17. ANALYSIS OF CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
At 1st Cash flow Exchange At 30th
July 2019 movement June 2020
GBP '000 GBP '000
GROUP
Cash at bank 20,605 (10,057) 414 10,962
and on deposit
COMPANY
Cash at bank 20,605 (10,057) 414 10,962
and on deposit
18. FINANCIAL INFORMATION
2020 Financial information
The figures and financial information for 2020 are unaudited and do not
constitute the statutory accounts for the year. The preliminary statement
has been agreed with the Company's auditors and the Company is not aware of
any likely modification to the auditor's report required to be included with
the annual report and accounts for the year ended 30th June 2020.
A copy of the Annual Report will be posted to the Company's website and will
also be submitted to the FCA's National Storage Mechanism and will be
available for inspection.
2019 Financial information
The figures and financial information for 2019 are unaudited and do not
constitute the statutory accounts for the year. The preliminary statement
has been agreed with the Company's auditors and the Company is not aware of
any likely modification to the auditor's report required to be included with
the annual report and accounts for the year ended 30th June 2019.
Annual Report and Accounts
The accounts for the year ended 30th June 2020 will be sent to shareholders
in October 2020 and will be available on the Company's website or in hard
copy format at the Company's registered office, 1 Knightsbridge Green,
London SW1X 7QA.
The Annual General Meeting of the Company will be held on 12th November 2020
at 11.00am at 1 Knightsbridge Green, London SW1X 7QA.
30th September 2020
ISIN: GB0002631041
Category Code: ACS
TIDM: NSI
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 85172
EQS News ID: 1137932
End of Announcement EQS News Service
(END) Dow Jones Newswires
September 30, 2020 07:05 ET (11:05 GMT)
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