TIDMET.
RNS Number : 3733X
Establishment Inv. Trust PLC (The)
23 November 2017
THE ESTABLISHMENT INVESTMENT TRUST PLC
(the 'Company')
LEI: 213800I9IT25LOQ1UW49
Replacement announcement
Update of registered auditor.
Half-year financial report for the six months ended 30 September
2017
Objective of the Company
The investment objective of the Company is to achieve long term
capital growth from a managed international portfolio of
securities. The preservation of capital is of primary importance to
the investment objective.
The Company aims to achieve absolute returns and is not managed
by reference to any equity or bond index or benchmark.
Investment Policy
-- To invest primarily in equities issued by companies listed on
regulated markets. With the prior approval of the Board, the
Company may invest in unlisted securities.
-- Up to 30% of net assets may be invested in investment
products managed by the Company's Investment Manager. The Company
may also hold positions in investment products managed by third
parties.
-- Up to a maximum of 15% of net assets (at cost at the date of
investment) may be invested in any one security.
-- The Company may borrow up to a maximum of 50% of net assets.
Financial Highlights
Performance for the six months ended 30 September 2017
At 30 September
2017 Total return
------------------------------------- ---------------- -------------
Share price 215.75p +11.5%
Net asset value per Ordinary Share 261.38p +2.2%
FTSE UK Private Investor Balanced
Index * +1.9%
MSCI UK Equity * +2.6%
MSCI AC World Equity * +2.7%
MSCI AC Asia ex Japan Equity * +8.1%
------------------------------------- ---------------- -------------
* The above percentages are total
returns in sterling
Share Price performance relative to the Net Asset Value and FTSE
UK Private Investor Balanced Index since inception on 18 March 2002
to 30 September 2017 (total return)
Chart - see Half year report on website
Chairman's Statement
During the first half of the Company's financial year, the share
price rose 7.7% while the Net Asset Value (NAV) slipped 0.7%.
Including the final and special dividends paid in July 2017, the
total returns were 11.5% and 2.2% respectively. The majority of the
Company's assets continue to be invested throughout Asia while
multinationals listed in London represent approximately a sixth of
the portfolio. Although Asian markets continued to perform well, a
recovery in sterling adversely affected our base currency
performance over the period.
At long last and after a decade of aggressive monetary expansion
through the co-ordinated action of Central Banks, we appear to be
seeing a synchronised global economic recovery. From February 2018,
the US Federal Reserve will be led by Jerome Powell, believed
likely to follow the "dovish" policies set by the present Governor,
Janet Yellen. Powell may now contemplate trimming the Fed's balance
sheet and moving to raise interest rates gradually. However,
inflation appears to be contained for the time being, although
important supply side reforms executed by China have seen cuts in
industrial capacity and a rebound in commodity prices, which could
start to unwind the exporting of deflation to Western economies.
There is a risk that a pickup in inflation could accelerate
tightening of policy and hence, liquidity. Nevertheless, our
manager is confident that the outlook for Asian economies remains
bright. The rise in disposable incomes in the region is creating
secular domestic demand while infrastructure programmes and inter
regional trade are all pointing to sustained future growth. Asian
corporate earnings are forecast to grow in the current year and the
next. Regional valuations are still undemanding, particularly when
compared to the US stock market.
The revenue account continues to improve increasing by some 40%
compared to the first half of the previous financial year. The
Board has declared an interim dividend of 3.0p representing a 20%
increase over last year's interim payment. The shares will be
quoted ex-dividend on 30th November 2017 and the dividend will be
paid on 22nd December 2017 to shareholders on the register at the
close of business on 1st December 2017.
The advent of MiFID II and PRIIPs in January 2018 are largely
unwelcome pieces of legislation to which the Company will need to
comply with.
It is encouraging to see that that the share price discount to
NAV has narrowed significantly from 23.9% to 17.5% responding to
the improved performance and the payment of an increased full year
dividend, including a special dividend repeated for the second year
in a row, together with the appointment of Stockdale Securities as
corporate brokers. The Board have no authority to buy back shares.
It is the Board's view that the shares are undervalued and
represent an opportunity to buy into a strategy that has compounded
total return at a growth rate of 8.7% per annum since the Company
listed in 2002, while the progressive dividend policy has delivered
income.
Harry Wells
Chairman
22 November 2017
Investment Manager's Report
During the first half of the Company's financial year the share
price rose 7.7% while the Net Asset Value slipped 0.7%. Including
the final and special dividends paid in July 2017, the total
returns were 11.5% and 2.2% respectively. For comparative purposes,
the MSCI AC Asia ex Japan Index rose 8.1%, the MSCI AC World Index
advanced 2.7% and the FTSE UK Private Investor Balanced Index
gained 1.9%.
The discount of the share price to the net asset value narrowed
from 23.9% to 17.5% during the period under review.
Performance and Portfolio Review
In the UK equity portfolio, both the tobacco holdings (BATS
(-10.8%) and Imperial Brands (-16.4%)) underperformed
significantly. GlaxoSmithKline (-8.1%) and National Grid (-6.6%)
also had a barren period with only Unilever (+11.3%) performing
strongly, thanks to interest from Mr Buffett et alia. Four of these
five holdings are multinational corporations with significant
overseas earnings so the recent recovery of sterling has proved
something of a headwind.
The 6% average absolute decline of these UK equity holdings
(which account for approximately one sixth of the portfolio) has
been a drag on overall performance. These are large blue chip
companies with strong long term records and, after the recent
setback, yield an average of almost 5%. We remain more suspicious
of sterling's outlook than the longer term future of these
companies.
In Asia, there have been two standout performers over the past
six months. By country, MSCI China (+18.7%) and by sector, MSCI
Information Technology (+20.4%) have outperformed significantly.
They also happen to be the biggest country and sector constituents
in the regional index. While the Company has retained decent
exposure to both Chinese equities and Information Technology stocks
(circa 20% and 10% respectively over the period), this has simply
not been enough in a relative sense.
Bright spots in the portfolio included Tencent (+40.9%),
Voltronics (+30.6%), Minth (+24.3%), Ayala Land (+22.3%) and
Johnson Electric (+21.3%). The more disappointing performers in
Asia have been almost all exclusively consumer-orientated
companies; an area where the Company retains significant
exposure.
Economic and Market Outlook
In America, the good news is that the tried and tested checks
and balances enshrined in the American constitution are working.
Simply put, President Trump has been unable to deliver on the vast
majority of his isolationist economic policies and so the global
economy led by China rolls on.
Over the past five years, General Secretary Xi Jinping has
reversed or eliminated the majority of the disastrous economic
policies of his predecessor. Specific supply side reforms and
tighter control of the capital account have both been actioned very
efficiently while Xi's new slogan "Beautiful China" suggests
further substantial efforts to curb pollution. Economic growth has
slowed but the quality of this growth, driven more by rising
consumption levels than investment, has improved significantly.
More importantly, Xi has restored the credibility of the Communist
Party in the eyes of the Chinese people with his five year long
anti-corruption agenda and is set to stay in power for a
considerable period. Markets love certainty. A stable Chinese
economy lies at the heart of Asia's future.
Meanwhile, in India, Prime Minister Modi continues to impress.
Demonetisation and the recent introduction of a nationwide General
Sales Tax have presented corporate India with significant
challenges over the past year. Despite these severe disruptions,
the economy has continued to expand, driven primarily by rising
consumption, itself supported by India's outstanding demographic
profile. The lack of a recovery in the investment cycle has worried
many observers, including ourselves. The availability of credit in
recent years has been compromised by the poor financial health of
the public sector banks which, collectively, account for roughly
two thirds of the banking sector. The recent announcement,
therefore, by the Modi administration of a US$32bn recapitalisation
of the public sector banks is significant. A recapitalised banking
system will, in time, fund a new investment cycle which will power
India's growth for years to come.
While the solid performance of regional markets over the past
eighteen months means that valuations are no longer at bargain
basement levels, your Investment Manager continues to strive to
identify excellent investments and remains optimistic of further
solid long term gains.
Blackfriars Asset Management Limited
Investment Manager
22 November 2017
Interim Management Report
The Directors are required to provide an Interim Management
Report in accordance with the UK Listing Authority's Disclosure
Guidance and Transparency Rules. They consider that the Chairman's
Statement and the Investment Manager's Report, the following
statement on related party transactions and the Directors'
Responsibility Statement below, together constitute the Interim
Management Report for the Company for the six months ended 30
September 2017.
The principal risks to the Company are in respect of foreign
currency, interest rates, market prices, liquidity and credit
risks. A detailed explanation of these risks and uncertainties can
be found in the Company's Annual Report for the year ended 31 March
2017. The risks and uncertainties facing the Company remain
unchanged from those disclosed in the Annual Report.
The Directors confirm that no related party transactions were
undertaken by the Company in the first six months of the current
financial year other than as disclosed in note 10 of this
Half-yearly financial report. There have been no significant
changes to the related party transactions described in the Annual
Report of the Company for the year ended 31 March 2017.
Directors' Responsibility Statement
Each of the Directors confirms that, to the best of the
knowledge of that Director:
a) the condensed set of Financial Statements contained within
the Half-yearly financial report has been prepared in accordance
with FRS 104 Interim Financial Reporting;
b) the Interim Management Report includes a fair review; as
required by Disclosure Guidance and Transparency Rule 4.2.7 R; of
important events that have occurred during the first six months of
the financial year, their impact on the condensed set of Financial
Statements and a description of the principal risks and perceived
uncertainties for the remaining six months of the financial year;
and
c) the Interim Management Report includes a fair review of the
information concerning related parties transactions as required by
Disclosure Guidance and Transparency Rule 4.2.8 R.
The half-year financial report for the six months ended 30
September 2017 and the above Directors' Responsibility Statement
were approved by the Board on 22 November 2017.
Harry Wells
Chairman
Portfolio Holdings at 30 September 2017
(All Equity Shares unless otherwise stated)
% of net
assets
(portfolio
Fair value % of net look
Holding Company GBP'000 assets through basis)
------------ ----------------------------------- ------------- --------- ----------------
Blackfriars Oriental Focus
390,000 Fund 'B'* 7,628 14.6 -
53,500 British American Tobacco 2,500 4.8 4.8
1,252 Samsung Electronics 2,092 4.0 4.7
8,750,000 Land & Houses 1,942 3.7 4.0
250,000 China Mobile 1,891 3.6 3.6
42,000 Unilever 1,814 3.5 3.5
297,933 Zee Entertainment 1,770 3.4 4.1
55,000 Imperial Brands 1,751 3.3 3.3
Housing Development Finance
86,426 Corporation 1,705 3.3 4.0
2,537,700 Ayala Land 1,617 3.1 3.8
492,700 Samsonite International 1,575 3.0 3.7
294,000 Taiwan Semiconductor Manufacturing 1,566 3.0 3.7
233,217 Siam City Cement 1,474 2.8 3.4
501,000 Johnson Electric Holdings 1,427 2.7 3.4
352,000 Minth Group 1,376 2.6 3.4
92,000 GlaxoSmithKline 1,369 2.6 2.6
431,263 ITC 1,272 2.4 2.9
813,596 Uni-President Enterprise 1,267 2.4 3.1
134,750 National Grid 1,245 2.4 2.4
304,800 Sands China 1,184 2.3 2.8
Industrial & Commercial Bank
2,010,000 of China 1,112 2.1 2.6
1,546,000 Sun Art Retail Group 1,070 2.1 2.6
73,070 Ayala Corporation 1,040 2.0 2.5
2,300,000 Astra International 1,007 1.9 2.4
1,026,000 China Communications 956 1.8 2.2
5,750 SK Telecom 956 1.8 2.4
28,911 Shinhan Financial 946 1.8 2.4
1,613,000 IJM Corporation 938 1.8 2.2
14,185,637 Silver Heritage 830 1.6 1.8
3,420,000 Singer Sri Lanka 769 1.5 1.8
5,700 Alibaba Group 735 1.5 1.8
6,700 Hanssem 659 1.3 1.5
19,600 Tencent Holdings 630 1.2 1.5
Voltronic Power Technology
40,000 Corporation 534 1.0 1.3
810 LG Household & Healthcare 494 0.9 1.2
- Other investments** - - 0.1
Total investments 51,141 97.8 97.5
Net current assets 1,135 2.2 2.5
------------ ----------------------------------- ------------- --------- ----------------
Net assets 52,276 100.0 100.0
------------ ----------------------------------- ------------- --------- ----------------
* Blackfriars Asset Management Irish domiciled
and listed fund
** 'Other investments' are investments held
by Blackfriars Oriental Focus Fund 'B' which
are not held by the Company
Analysis of Investment Portfolio at 30 September 2017
% of net
assets
(portfolio
Fair value % of net look
Sector Analysis GBP'000 assets through basis)
------------------------------ ----------- --------- ----------------
Consumer Staples 10,168 19.4 21.4
Consumer Discretionary 9,170 17.6 21.5
Financials 8,362 16.0 19.4
Investment Companies 7,628 14.6 -
Industrials 5,100 9.7 11.5
Information Technology 5,023 9.7 11.7
Telecommunication Services 2,847 5.4 6.0
Materials 1,474 2.8 3.4
Health Care 1,369 2.6 2.6
Total investments 51,141 97.8 97.5
Net current assets 1,135 2.2 2.5
------------------------------ ----------- --------- ----------------
Net assets 52,276 100.0 100.0
------------------------------ ----------- --------- ----------------
% of net
assets
(portfolio
Geographical Analysis (based Fair value % of net look
on listing or domicile) GBP'000 assets through basis)
------------------------------ ----------- --------- ----------------
United Kingdom 8,679 16.6 16.6
Ireland * 7,628 14.6 -
Hong Kong 7,262 13.9 17.4
Korea 5,147 9.8 12.2
India 4,747 9.1 11.0
China 4,694 9.0 10.2
Thailand 3,416 6.5 7.4
Taiwan 3,367 6.4 8.1
Philippines 2,657 5.1 6.3
Indonesia 1,007 1.9 2.4
Malaysia 938 1.8 2.2
Australia 830 1.6 1.8
Sri Lanka 769 1.5 1.8
Vietnam - - 0.1
Total investments 51,141 97.8 97.5
Net current assets 1,135 2.2 2.5
------------------------------ ----------- --------- ----------------
Net assets 52,276 100.0 100.0
------------------------------ ----------- --------- ----------------
% of net
assets
(portfolio
Fair value % of net look
Classification of Assets GBP'000 assets through basis)
------------------------------ ----------- --------- ----------------
Equities 51,141 97.8 97.5
Net current assets 1,135 2.2 2.5
------------------------------ ----------- --------- ----------------
Net assets 52,276 100.0 100.0
------------------------------ ----------- --------- ----------------
* Blackfriars Asset Management Irish domiciled and listed fund.
This represents the investment in Blackfriars Oriental Focus
Fund 'B' which is invested in Asia (ex Japan) equities.
Condensed Income Statement
Six months ended 30 Six months ended 30
September 2017 (unaudited) September 2016 (unaudited)
-------------------------------- --------------------------------
Notes Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ------ ---------- --------- --------- ---------- --------- ---------
Gains on investments - 474 474 - 7,128 7,128
Exchange (losses) / gains
on currency balances - (117) (117) - 469 469
Income 5 1,185 - 1,185 889 - 889
Investment management
fees (37) (147) (184) (28) (111) (139)
Other expenses (125) - (125) (159) - (159)
Return before tax 1,023 210 1,233 702 7,486 8,188
Tax on return for the
period 7 (89) - (89) (38) - (38)
Return for the financial
period 934 210 1,144 664 7,486 8,150
Return per Ordinary Share 8 4.67p 1.05p 5.72p 3.32p 37.43p 40.75p
--------------------------- ------ ---------- --------- --------- ---------- --------- ---------
Year ended 31 March
2017 (audited)
-------------------------------
Notes Revenue Capital Total
GBP'000 GBP'000 GBP'000
---------------------------- ------ --------- --------- ---------
Gains on investments - 10,358 10,358
Exchange gains on currency
balances - 595 595
Income 5 1,442 - 1,442
Investment management
fees (60) (242) (302)
Other expenses (282) - (282)
Return before tax 1,100 10,711 11,811
Tax on return for the
year 7 (50) - (50)
Return for the financial
year 1,050 10,711 11,761
Return per Ordinary Share 8 5.25p 53.56p 58.81p
---------------------------- ------ --------- --------- ---------
All revenue and capital items in the above statement derive from
continuing operations.
The total columns in this statement represent the Income
Statement of the Company. The revenue and capital columns are
supplementary to this and are prepared under the guidance published
by the Association of Investment Companies.
As all the gains and losses of the Company have been reflected
in the above statement, the return for the financial period is also
the total comprehensive income for the period.
Condensed Statement of Financial Position
30 September 30 September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
Note GBP'000 GBP'000 GBP'000
------------------------------------ ----- ------------------ ------------------ ----------------
Fixed assets
Investments held at fair value
through profit or loss 51,141 46,857 50,077
------------------------------------ ----- ------------------ ------------------ ----------------
Current assets
Debtors 30 38 813
Cash at bank 1,136 2,704 3,183
------------------------------------ ----- ------------------ ------------------ ----------------
1,166 2,742 3,996
Payables: amounts falling due
within one year (31) (78) (1,441)
------------------------------------ ----- ------------------ ------------------ ----------------
Net current assets 1,135 2,664 2,555
Net assets 52,276 49,521 52,632
------------------------------------ ----- ------------------ ------------------ ----------------
Capital and reserves
Called up share capital 5,000 5,000 5,000
Share premium 14,701 14,701 14,701
------------------------------------ ----- ------------------ ------------------ ----------------
19,701 19,701 19,701
Capital reserve 31,377 28,802 32,027
Revenue reserve 1,198 1,018 904
------------------------------------ ----- ------------------ ------------------ ----------------
Equity shareholders' funds 52,276 49,521 52,632
------------------------------------ ----- ------------------ ------------------ ----------------
Net asset value per Ordinary Share 6 261.38p 247.61p 263.16p
The financial statements were approved by the Board and signed
on its behalf by:
Harry Wells
Chairman
22 November 2017
Registered in England No. 4355437
Condensed Statement of Changes in Equity
For the six months ended 30 September 2017
(unaudited)
Called
up share Share Capital Revenue
capital premium reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- --------------- --------------- --------- --------- ---------
At 31 March 2017 5,000 14,701 32,027 904 52,632
Return for the financial
period - - 210 934 1,144
Dividends paid - - (860) (640) (1,500)
-------------------------- --------------- --------------- --------- --------- ---------
At 30 September 2017 5,000 14,701 31,377 1,198 52,276
-------------------------- --------------- --------------- --------- --------- ---------
For the six months ended 30 September 2016
(unaudited)
Called
up share Share Capital Revenue
capital premium reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- --------------- --------------- --------- --------- ---------
At 31 March 2016 5,000 14,701 22,096 994 42,791
Return for the financial
period - - 7,486 664 8,150
Dividends paid - - (780) (640) (1,420)
-------------------------- --------------- --------------- --------- --------- ---------
At 30 September 2016 5,000 14,701 28,802 1,018 49,521
-------------------------- --------------- --------------- --------- --------- ---------
For the year ended 31 March 2017 (audited)
Called
up share Share Capital Revenue
capital premium reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- --------------- --------------- --------- --------- ---------
At 31 March 2016 5,000 14,701 22,096 994 42,791
Return for the financial
year - - 10,711 1,050 11,761
Dividends paid - - (780) (1,140) (1,920)
-------------------------- --------------- --------------- --------- --------- ---------
At 31 March 2017 5,000 14,701 32,027 904 52,632
-------------------------- --------------- --------------- --------- --------- ---------
Condensed Statement of Cash Flows
Six months Six months
ended 30 ended 30 Year ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------------ ------------------ ----------------
Cash flows from operating activities
Return for the financial period 1,144 8,150 11,761
Adjustments for:
Taxation 89 38 50
Gains on investments held at
fair value (474) (7,128) (10,358)
Losses / (gains) on exchange
movements 117 (469) (595)
Decrease in trade debtors 149 176 36
(Decrease) / increase in trade
creditors (63) (9) 11
----------------------------------------- ------------------ ------------------ ----------------
Cash from operations 962 758 905
Taxation (89) (38) (50)
----------------------------------------- ------------------ ------------------ ----------------
Net cash generated from operating
activities 873 720 855
----------------------------------------- ------------------ ------------------ ----------------
Cash flows from investing activities
Purchase of investments (15,928) (10,252) (17,263)
Sale of investments 14,625 11,261 18,992
----------------------------------------- ------------------ ------------------ ----------------
Net cash (used for) / generated
from investing activities (1,303) 1,009 1,729
----------------------------------------- ------------------ ------------------ ----------------
Cash flows from financing activities
Equity dividends paid (1,500) (1,420) (1,920)
----------------------------------------- ------------------ ------------------ ----------------
Net cash used for financing activities (1,500) (1,420) (1,920)
----------------------------------------- ------------------ ------------------ ----------------
Net (decrease) / increase in
cash and cash equivalents (1,930) 309 664
Foreign exchange movements (117) 471 595
Cash and cash equivalents at
beginning of period 3,183 1,924 1,924
----------------------------------------- ------------------ ------------------ ----------------
Cash and cash equivalents at
end of period 1,136 2,704 3,183
----------------------------------------- ------------------ ------------------ ----------------
Notes to the Financial Statements
1. Accounting policies
The half-yearly financial report for the six months ended 30
September 2017 (the "Report") has been prepared in accordance with
FRS 104 Interim Financial Reporting and the Statement of
Recommended Practice "Financial statements of investment trust
companies" issued by the Association of Investment Companies in
November 2014 and updated in January 2017 with consequential
amendments.
The Report is unaudited and does not include all of the
information required for full annual financial statements. The
Report should be read in conjunction with the annual report and
financial statements of the Company for the year ended 31 March
2017. The accounting policies and presentation in the Report are
consistent with those applied in the Annual Report for the year
ended 31 March 2017.
The Company conducts its affairs in a manner intended to meet
the requirements for approval as an investment trust under section
1158 of the Corporation Tax Act 2010.
These financial statements have been prepared in accordance with
the requirements of section 838 of the Companies Act 2006 and
constitute the Company's interim accounts for the purpose of
justifying the payment of an interim dividend for the year ending
31 March 2018.
2. Status of the Report
The Report does not represent the Company's statutory accounts
for the purposes of section 434 of the Companies Act 2006. The
Report will be sent to shareholders and copies will be made
available to the public at the registered office of the Company and
will be available on the investment manager's website
(www.blackfriarsam.com).
The financial information for the year ended 31 March 2017
included in the Report has been extracted from the Company's
audited annual accounts for the year to 31 March 2017, which
contained an unqualified audit report and did not include
statements under Sections 498(2) or 498(3) of the Companies Act
2006. Those accounts have been filed with the Registrar of
Companies.
3. Going concern
These financial statements have been prepared on a going concern
basis. The following is a summary of the Directors' assessment of
the going concern status of the Company.
The majority of the net assets of the Company are securities
which are traded on recognised stock exchanges. After considering
the Company's current financial resources, the Directors are
satisfied that its resources are adequate for continuing in
business for the foreseeable future.
4. Valuation of investments
The Company's investments have been designated at fair value
through profit or loss, and are recognised on the trade date and
are initially measured at cost being the fair value. Investments
are measured at subsequent reporting dates at fair value, and
changes in fair value are included in the Condensed Income
Statement as a capital item. For listed investments, fair value is
deemed to be either the bid price or the last traded price,
depending on the convention of the exchange on which the investment
is quoted.
Unquoted investments would also be valued by the Directors at
fair value. The Company held no unquoted investments at the period
end.
5. Income
Six months Six months
ended 30 ended 30 Year ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
GBP'000 GBP'000 GBP'000
-------------------------- ------------------ ------------------ ----------------
Income from investments:
Overseas dividends 1,026 711 1,055
UK dividends 159 178 387
-------------------------- ------------------ ------------------ ----------------
1,185 889 1,442
-------------------------- ------------------ ------------------ ----------------
6. Net asset value per Ordinary Share
Six months Six months
ended 30 ended 30 Year ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
------------------------------ ------------------ ------------------ ----------------
Net assets attributable GBP52,276,000 GBP49,521,000 GBP52,632,000
Ordinary Shares in issue 20,000,000 20,000,000 20,000,000
------------------------------ ------------------ ------------------ ----------------
Net asset value per Ordinary
Share 261.38p 247.61p 263.16p
------------------------------ ------------------ ------------------ ----------------
7. Taxation
The tax charge relates to overseas withholding tax incurred on
income received/receivable.
8. Return per Ordinary Share
Six months Six months
ended 30 ended 30 Year ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
--------------------------- ------------------ ------------------ ----------------
Total return per Ordinary
Share
Total return GBP1,144,000 GBP8,150,000 GBP11,761,000
Weighted average number
of Ordinary
Shares in issue during
the period 20,000,000 20,000,000 20,000,000
--------------------------- ------------------ ------------------ ----------------
Total return per Ordinary
Share 5.72p 40.75p 58.81p
--------------------------- ------------------ ------------------ ----------------
The total return per Ordinary Share detailed above can be
further analysed between revenue and capital, as below:
Six months Six months
ended 30 ended 30 Year ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
----------------------------- ------------------ ------------------ ----------------
Revenue return per Ordinary
Share
Revenue return GBP934,000 GBP664,000 GBP1,050,000
Weighted average number
of Ordinary
Shares in issue during
the period 20,000,000 20,000,000 20,000,000
----------------------------- ------------------ ------------------ ----------------
Revenue return per Ordinary
Share 4.67p 3.32p 5.25p
----------------------------- ------------------ ------------------ ----------------
Capital return per Ordinary
Share
Capital return GBP210,000 GBP7,486,000 GBP10,711,000
Weighted average number
of Ordinary
Shares in issue during
the period 20,000,000 20,000,000 20,000,000
----------------------------- ------------------ ------------------ ----------------
Capital return per Ordinary
Share 1.05p 37.43p 53.56p
----------------------------- ------------------ ------------------ ----------------
9. Interim dividend
The Directors have declared an interim dividend of 3.0p per
Ordinary Share in respect of the year ending 31 March 2018. The
shares will be quoted ex-dividend on 30(th) November 2017 and the
dividend will be paid on 22(nd) December 2017 to Shareholders on
the register at the close of business on 1(st) December 2017.
10. Related party transactions
Fees payable to the Company's investment manager, Blackfriars
Asset Management Limited ("Blackfriars") are shown in the Condensed
Income Statement. At 30 September 2017, the fee accrual outstanding
to Blackfriars was GBP30,029 (30 September 2016: GBP25,413).
Up to 30% of net assets may be invested in investment products
managed by the Company's investment manager. At 30 September 2017,
the aggregate amount invested in investment products managed by
Blackfriars represented 14.6% of the Company's net assets.
Blackfriars rebates management fees in respect of amounts invested
in Blackfriars' investment products back to the Company.
Fees payable to the Directors for the six months ended 30
September 2017 were GBP37,000 (six months ended 30 September 2016:
GBP33,750). Fees are payable at an annual rate of GBP22,000 to the
Chairman, GBP19,250 to the Chairman of the Audit and Risk Committee
and GBP16,500 to the other Directors. Tom Waring has waived his
Director's fee since the appointment of Blackfriars as investment
manager to the Company.
The interests of the Directors in the Ordinary Shares of the
Company on the dates shown were as follows:
Ordinary Shares of 25p each
Six months Six months
ended 30 ended 30 Year ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
GBP'000 GBP'000 GBP'000
-------------------- -------------------- -------------------- --------------------
Harry Wells (b) 30,000 26,000 30,000
Harry Wells (c) - 4,000 -
Jim Ryall - - -
Gregory Shenkman 3,415 3,415 3,415
Susan Thornton (a) 1,744,728 1,744,728 1,744,728
Tom Waring (b) 3,891 - -
-------------------- -------------------- -------------------- --------------------
(a) As a Trustee of The Thornton Foundation
(b) Held in SIPP
(c) As a Trustee of The Pauline Lamb Grandchildren's Trust
Susan Thornton also has an interest as a beneficiary of The
Estate of Richard Thornton, which at the date of this report held
3,611,083 Ordinary Shares in the Company.
No changes in the above interests have been notified to the
Company between 30 September 2017 and the date of this Report.
11. Classification of financial instruments
FRS 102, as amended for fair value hierarchy disclosures (March
2016), sets out three fair value levels. These are:
Level 1
The unadjusted quoted price in an active market for identical
assets or liabilities that the entity can access at the measurement
date.
Level 2
Inputs other than quoted prices included within Level 1 that are
observable (i.e. developed using market data) for the asset or
liability, either directly or indirectly.
Level 3
Inputs are unobservable (i.e. for which market data is
unavailable) for the asset or liability.
The classification of the Company's investments held at fair
value is detailed in the table below:
Six months Six months
ended 30 ended 30 Year ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017 (audited)
GBP'000 GBP'000 GBP'000
--------- ------------------ ------------------ ----------------
Level 1 51,141 46,857 48,806
Level 2 - - 836
Level 3 - - 435
--------- ------------------ ------------------ ----------------
Total 51,141 46,857 50,077
--------- ------------------ ------------------ ----------------
12. Distributable reserves
The Company's distributable reserves consist of the capital
reserve and revenue reserve. Dividends may be paid from either of
these reserves.
Company Information
Directors Investment Manager
Harry Wells (Chairman) Blackfriars Asset Management
Limited
Jim Ryall 9 Cloak Lane
Gregory Shenkman London EC4R 2RU
Susan Thornton Tel: 020 7332 2270
Tom Waring www.blackfriarsam.com
Corporate Secretary and Registered Solicitors
Office
PraxisIFM Fund Services (UK) Stephenson Harwood
Limited
Mermaid House 1 Finsbury Circus
2 Puddle Dock London EC2M 7SH
London EC4V 3DB
Registrars Registered Auditor
Link Asset Services BDO LLP
(formerly trading as Capita Registrars) 55 Baker Street
The Registry London
34 Beckenham Road W1U 7EU
Beckenham
Kent BR3 4TU
Broker Custodian
Stockdale Securities The Northern Trust Company
Beaufort House 50 Bank Street
15 St Botolph Street Canary Wharf
London EC3A 7BB London E14 5NT
The Company's web pages can be accessed on the Investment
Manager's website at www.blackfriarsam.com.
Individual Savings Account ('ISA')
The Company's shares are eligible to be held in an ISA account
subject to HM Revenue & Customs' limits.
Registered in England No. 4355437
Enquiries:
Anthony Lee / Ciara McKillop 020 7653 9690
PraxisIFM Fund Services (UK)
Limited
Company Secretary
The Half-yearly financial report will be submitted to the
National Storage Mechanism and will shortly be available for
inspection at: http://www.morningstar.co.uk/uk/NSM.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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