TIDMINV
RNS Number : 5407C
Investment Company PLC
11 February 2020
THE INVESTMENT COMPANY PLC
Half-Yearly Financial Report (Unaudited) for the six months
ended 31 December 2019
SUMMARY OF RESULTS
At 31 December At 30 June
2019 2019
(unaudited) (audited) Change %
---------------------------- ----------------- ------------- ----------
Equity shareholders' funds
(GBP) 17,885,130 16,620,311 7.61
Number of ordinary shares
in issue 4,772,049 4,772,049 -
Net asset value ("NAV")
per ordinary share 374.79p 348.28p 7.61
Ordinary share price (mid) 346.00p 298.00p 16.11
Discount to NAV 7.68% 14.44% -
---------------------------- ----------------- ------------- ----------
12 months
to
6 months to 30 June 2019
31 December 2019
(unaudited) (audited)
---------------------------- ----------------- -------------
Total return per ordinary
share 34.01p 3.24p
Dividends paid per ordinary
share 7.50p 16.25p
---------------------------- ----------------- -------------
INVESTMENT OBJECTIVE
The Company's investment objective is to provide shareholders
with an attractive level of dividends coupled with capital growth
over the long term through investment in a portfolio of equities,
preference shares, loan stocks, debentures and convertibles.
FINANCIAL CALAR
February Payment of quarterly interim
dividend.
February/March Announcement of Half-Yearly
Financial Report.
May Payment of quarterly interim
dividend.
August Payment of quarterly interim
dividend.
September/October Announcement of Annual Results.
November Payment of quarterly interim
dividend.
November/December Annual General Meeting.
CHAIRMAN'S STATEMENT
Half-Year to 31 December 2019
During the period under review the FTSE All-Share Index
increased by 3.44%. The Company's NAV was up by 26.51p, an increase
of 7.61 %, which can be analysed as follows:
At December 2019 At June 2019
Pence per share % Pence per %
share
Opening net assets 348.28 100.00 363.24 100.00
Investment income 10.39 2.98 24.19 6.66
Expenses (4.19) (1.20) (8.63) (2.37)
Portfolio outturn 27.81 7.98 (12.53) (3.45)
Dividends paid (7.50) (2.15) (17.99) (4.95)
--------------- ------- --------- ------
Closing net assets 374.79 107.61 348.28 95.89
--------------- ------- --------- ---------
The Investment Manager has continued to make sound progress in
recovering value from the legacy portfolio. In particular, I draw
shareholders attention to the Manager's successful endeavours in
securing an offer for our Liberty 6% & 9.5% preference shares,
a welcome offer for our Aggregated Micro Power Holdings PLC equity
holding, and the redemption of our Newcastle Building Society
3.886% Subordinated Notes. Cash proceeds from these sales have been
recycled into higher yielding fixed interest and equity holdings.
The Investment Managers' Report is set out on pages 4 and 5.
Current income projections anticipate that after covering the
costs of running the Company, sufficient income will be available,
such that it is likely we will be able to cover the cost of the
dividends. This has been a key objective since July 2018, and I am
delighted that the Investment Manager has managed the affairs of
the Company such that it is likely this objective will be met in
this prevailing year.
Your Board believes individuals' capital is scarce, and as such
should be respected for its irreplaceability. We have seen savers
in recent times suffer at the hands of hubris and unaccountability.
We as a Board are conscious that the Company is still too small
relative to its relatively fixed cost base, but we will only seek
out opportunities that are likely to attract like-minded
shareholders, and capital that has a long-term time horizon.
I. R. Dighé
Chairman
10 February 2020
INVESTMENT MANAGER'S REPORT
Performance
During the six month period to 31 December 2019 the NAV
increased by 7.61% whilst the share price rose by 16.11%, which was
ahead of major UK indices.
The period under review was dominated by two factors. Firstly
concerns continued to build over the outlook for US/China trade
tariffs and the impact they were having on the global economy. As a
result the Federal Reserve took decisive action and cut interest
rates three times during the period in order to shield the US
economy from the impact of trade wars and the global economic
slowdown. Towards the end of the period, following 18 months of
fraught trade war negotiations, the US and Chinese administrations
have agreed a preliminary phase one trade agreement. This was a
major boost for the global economy and investor confidence.
Secondly, in the UK Brexit has dominated the agenda and the
debate has pivoted around the potential of a satisfactory
'withdrawal agreement' being passed by Parliament. As the period
progressed investor expectation grew of a potential withdrawal
agreement being passed through Parliament and as a result Sterling
strengthened against the US Dollar & Euro. The decisive general
election result saw the government returned to power with a healthy
majority which should ensure a resolution to the Brexit saga and a
more market friendly agenda. Sterling initially surged on the
result but has since drifted back. As we have mentioned in previous
reports the general election outcome provides the much sought after
clarity that international and UK investors were seeking as they
assess the relatively attractive valuations of some UK assets. The
FTSE 250, which is dominated by domestic equities such as -
housebuilders, utilities and financials - performed strongly in
December.
Portfolio
Towards the end of the period we received a takeover bid in cash
for Aggregated Micro Power Holdings PLC which is a good outcome for
the Company. Firstly we were having difficulty selling the shares
in the market and secondly they were not paying a dividend. We have
deployed this c.GBP500,000 of capital into existing portfolio
holdings which will generate in excess of GBP30,000 of income per
annum.
In August, we received a cash bid for Greene King from CK Asset
Holdings Limited in Hong Kong at a significant premium to our
purchase price. As a result, we sold the position at an attractive
profit and have reinvested the proceeds into existing holdings such
as Vistry (formerly Bovis), Polar Capital, Phoenix Group and New
River REIT.
We also had a satisfactory resolution to the two preference
share holdings in Liberty Limited and Liberty Retail Limited. These
Liberty preference share issues have not been paying interest for a
number of years and as a result they were a drag on the Company.
More importantly, we have been able to deploy the capital received
into existing fixed interest and equity holdings which will provide
a significant boost towards covering the administration costs and
paying the dividend.
During the period we also increased our exposure to
housebuilders - Bellway, Persimmon and Vistry due to the
increasingly favourable operating environment which was further
enhanced by the well-received general election result and Brexit
resolution. The housebuilders are currently paying generous and
well covered dividends - both ordinary and specials - and are
attractively valued.
We took the opportunity to take some profits in Restaurant Group
as the price rise from our initial purchase made the yield less
attractive and the company is still in the midst of restructuring
itself in order to attract customers in the increasingly
competitive casual dining market. We also took the opportunity to
add to existing holdings in New River REIT, Phoenix Group and
Standard Life Aberdeen. We were fully invested ahead of the general
election due to the widely anticipated Conservative majority and
this has been a boost for the portfolio.
In the fixed interest part of the portfolio we sold the EI Group
7.5% March 2024 at an attractive level following a strong
performance over the last year. EI Group has been acquired by the
Stonegate Pub Company. The bond is callable in September 2020 at a
level below our sale price.
The Newcastle Building Society 3.886% December 2019 Subordinated
Notes were redeemed by the company as planned. The yield was
relatively low and the redemption has allowed us to re-allocate the
returned capital into existing holdings within the portfolio that
offer higher yields. These include additions to Lloyds Bank 7.625%
Perpetual, Premier Oil 6.5% 2021 and Ecclesiastical Insurance
8.625% Preference shares.
Future Prospects
Fears of a global recession have eased somewhat with better
economic data from the UK and US. In response, bond yields have
backed off from their lows. Notwithstanding geo-political risks,
the backdrop is generally supportive for equity markets although
investors have become more discriminating in their evaluation of
growth company ratings. This has led to a better period of
performance for more value oriented stocks.
With the UK General Election now decided, the political
uncertainty has been largely removed. However, the finer details of
Brexit still need to be negotiated and there will undoubtedly be
continuing concerns about the UK's long-term relationship with
Europe and the progress made in agreeing trade deals with the rest
of the world. With the Conservatives having such a large working
majority, the major risk to the UK economy would appear to be a
hard or no deal Brexit. This will no doubt be reflected in how
Sterling moves against other currencies over the coming year.
M. Foster, J. Harrison, J Dieppe
Fiske plc
10 February 2020
TWENTY LARGEST INVESTMENTS
At 31 December 2019
Market
or Directors'
Book cost valuation % of total
Stock Number GBP GBP portfolio
GlaxoSmithKline
1. Ordinary 25p# 35,450 519,438 630,514 3.80%
600 Group
2. 8% cov loan notes 14/02/20 500,000 500,000 539,475 3.25%
20p Warrants 2,500,000 - - -
----------------- --------------------- ---------------
500,000 539,475 3.25%
Nationwide Building
Society
10.25% core capital
3. deferred shares (variable) 3,100 490,536 514,656 3.10%
4. BP
Ordinary USD 0.25# 109,000 558,246 514,044 3.10%
Premier Oil
5. 6.5% 31/05/21 510,000 503,652 511,805 3.09%
6. Phoenix Group
Ordinary 10p# 68,115 471,445 509,977 3.07%
7. Unilever
Ordinary 3.11p# 11,135 448,710 484,428 2.92%
8. The Fishguard & Rosslare
Railways and Harbours
Company
2.45% guaranteed preference
stock 790,999 441,810 474,599 2.86%
Virgin Money UK
9. 8% variable perpetual 450,000 415,497 471,762 2.84%
National Westminster
10. 9% Non Cum Pref 300,000 217,752 471,000 2.84%
New River REIT
11. NPV# 231,150 504,737 463,456 2.79%
Aggregated Micro
Power
12. Ordinary 0.50p# 554,286 388,000 460,057 2.77%
14. Intercede
13. 8% Secured Conv Loan 450,000 450,000 450,000 2.71%
Lloyds Banking
14. 7.625% Variable Perprtual 400,000 305,836 447,968 2.70%
15. Amalgamated Metal
Corporation
5.4% cum pref GBP1 256,065 144,049 235,580 1.42%
6% cum pref GBP1 213,510 103,844 211,375 1.28%
----------------- --------------------- -----------------
247,893 446,955 2.70%
Punch Taverns
16. 7.75% 30/12/25 450,000 447,545 446,733 2.69%
Bovis Homes
17. Ordinary 50p# 32,800 360,550 445,424 2.69%
18. M&G
Ordinary 5p# 182,000 403,920 431,340 2.60%
Legal & General
19. Ordinary 2.5p# 141,300 316,384 428,139 2.58%
Polar Capital
20. Ordinary 2.5p# 76,300 404,897 412,020 2.48%
----------------- --------------------- -----------------
8,396,848 9,554,352 57.58%
----------------- --------------------- -----------------
# Issues with unrestricted voting rights.
The Group has a total of 59 portfolio investments holdings in 56
companies
INTERIM MANAGEMENT REPORT AND DIRECTORS' RESPONSIBILITY
STATEMENT
Interim Management Report
The important events that have occurred during the period under
review and their impact on the financial statements are set out in
the Chairman's Statement on page 3 and the Investment Manager's
Report on pages 4 and 5.
In the view of the Board, the principal risks facing the Group
are substantially unchanged since the date of the Report and
Accounts for the year ended 30 June 2019 and continue to be as set
out in that report. Risks faced by the Group include, but are not
limited to, market risk (which comprises market price risk,
interest rate risk and liquidity risk). Details of the Company's
management of these risks and exposure to them is set out in the
Company's Report and Accounts for the year ended 30 June 2019.
There have been no significant changes in the related party
disclosures set out in the Annual Report.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
-- the condensed set of financial statements has been prepared
in accordance with International Accounting Standard 34, Interim
Financial Reporting, and gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group;
and
-- this Half-Yearly Financial Report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related party transactions that have taken place in the first
six months of the current financial year and that have materially
affected the financial position or performance of the Group during
that period; and any changes in the related party transactions that
could do so.
This Half-Yearly Financial Report was approved by the Board of
Directors on 10 February 2020 and the above responsibility
statement was signed on its behalf by I. R. Dighé, Chairman.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2019
6 months to 31 6 months to 31 Year ended 30 June
December 2019 December 2018 2019
Notes (unaudited) (uaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP GBP GBP GBP
---------- ---------- ---------- ---------- ------------ ------------ ---------- ---------- ----------
Realised
gains
on investments - 666,812 666,812 - 330,847 330,847 - 267,049 267,049
Unrealised
gains/(losses)
on gains
on investments
held
at fair
value
through
profit
or loss - 660,624 660,624 - (1,730,156) (1,730,156) - (864,171) (864,171)
Exchange
losses
on
capital
items - (163) (163) - (58) (58) - (137) (137)
Investment
income 2 495,930 - 495,930 379,490 - - 1,154,271
Investment
management
fee (63,992) - (63,992) (45,000) - (45,000) (98,697) (98,697)
Other
expenses (136,135) (353) (136,488) (134,030) (321) (134,351) (301,825) (646) (302,471)
---------- ---------- ---------- ---------- ------------ ------------ ---------- ---------- ----------
Return
before
finance
costs
and taxation 295,803 1,326,920 1,622,723 200,460 (1,399,688) (1,199,228) 753,749 (597,905) 155,844
Bank
debit
interest - - - - - - - - -
---------- ---------- ---------- ---------- ------------ ------------ ---------- ---------- ----------
Return
before
taxation 295,803 1,326,920 1,622,723 200,460 (1,399,688) (1,199,228) 753,749 (597,905) 155,844
Taxation - - - (1,574) - (1,574) (1,113) - (1,113)
Total
comprehensive
income
after
taxation 295,803 1,326,920 1,622,723 198,886 (1,399,688) (1,200,802) 752,636 (597,905) 154,731
---------- ---------- ---------- ---------- ------------ ------------ ---------- ---------- ----------
Return
on total
comprehensive
income
per
50p ordinary
share
Basic
and diluted 3 6.20p 27.81p 34.01p 4.17p (29.33p) (25.16p) 15.77p (12.53p) 3.24p
---------- ---------- ---------- ---------- ------------ ------------ ---------- ---------- ----------
The total column of this statement is the condensed Consolidated
Statement of Total Comprehensive Income of the Group prepared in
accordance with International Financial Reporting Standards
("IFRS").The supplementary revenue and capital columns are prepared
in accordance with the Statement of Recommended Practice issued by
the Association of Investment Companies ("AIC SORP").
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued
during the period.
The notes on pages 13 to 16 form part of these condensed
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2019
Issued
ordinary Capital
share Share redemption Revaluation Capital Revenue
capital premium reserve reserve reserve reserve Total
GBP GBP GBP GBP GBP GBP GBP
--------------- ------------ ------------- ----------- ------------ ------------ -----------
Balance at 1
July 2019 2,386,025 4,453,903 2,408,820 - 8,629,630 (1,258,067) 16,620,311
Total
comprehensive
income
Net return for
the year - - - - 1,326,920 295,803 1,622,723
Transactions
with shareholders
recorded directly
to equity
Ordinary dividends
paid - - - - - (357,904) (357,904)
--------------- ------------ ------------- ----------- ------------ ------------ -----------
Balance at 31
December 2019 2,386,025 4,453,903 2,408,820 - 9,956,550 (1,320,168) 17,885,130
--------------- ------------ ------------- ----------- ------------ ------------ -----------
Balance at 1
July 2018 2,386,025 4,453,903 2,408,820 1,917,418 7,310,117 (1,142,190) 17,334,093
Transition to
IFRS 9 - - - (1,917,418) 1,917,418 - -
Total
comprehensive
income
Net return for
the year - - - - (1,399,688) 198,886 (1,200,802)
Transactions
with shareholders
recorded directly
to equity
Ordinary dividends
paid - - - - - (510,609) (510,609)
--------------- ------------ ------------- ----------- ------------ ------------ -----------
Balance at 31
December 2018 2,386,025 4,453,903 2,408,820 - 7,827,847 (1,453,913) 15,622,682
--------------- ------------ ------------- ----------- ------------ ------------ -----------
Balance at 1
July 2018 2,386,025 4,453,903 2,408,820 1,917,418 7,310,117 (1,142,190) 17,334,093
Transition to
IFRS 9 - - - (1,917,418) 1,917,418 - -
Total
comprehensive
income
Net return for
the year - - - - (597,905) 752,636 154,731
Transactions
with shareholders
recorded directly
to equity
Ordinary dividends
paid - - - - - (868,513) (868,513)
--------------- ------------ ------------- ----------- ------------ ------------ -----------
Balance at 30
June 2019 2,386,025 4,453,903 2,408,820 - 8,629,630 (1,258,067) 16,620,311
--------------- ------------ ------------- ----------- ------------ ------------ -----------
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2019
31 December 31 December 30 June
2019 (unaudited) 2018 (unaudited) 2019 (audited)
Note GBP GBP GBP
------------------ ------------------ ---------------------
Non-current assets
Investments 16,593,672 13,709,874 15,777,113
------------------ ------------------ ---------------------
Current assets
Trade and other receivables 152,927 169,936 192,958
Cash and cash equivalents 1,251,156 1,826,565 785,703
------------------ ------------------ ---------------------
1,404,083 1,996,501 978,661
------------------ ------------------ ---------------------
Current liabilities
Trade and other payables (112,625) (83,693) (135,463)
------------------ ------------------ ---------------------
Net current assets 1,291,458 1,912,808 843,198
------------------ ------------------ ---------------------
Net assets 17,885,130 15,622,682 16,620,311
------------------ ------------------ ---------------------
Capital and reserves
Issued ordinary share
capital 5 2,386,025 2,386,025 2,386,025
Share premium 4,453,903 4,453,903 4,453,903
Capital redemption
reserve 2,408,820 2,408,820 2,408,820
Capital reserve 9,956,550 7,827,847 8,629,630
Revenue reserve (1,320,168) (1,453,913) (1,258,067)
------------------ ------------------ ---------------------
Shareholders' funds 17,885,130 15,622,682 16,620,311
------------------ ------------------ ---------------------
NAV per 50p ordinary
share 6 374.79p 327.38p 348.28p
------------------ ------------------ ---------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2019
31 December 30 June
31 December 2019 2018 (unaudited) 2019 (audited)
(unaudited) GBP GBP GBP
---------------------------------- ------------------ ---------------------
Cash flows from operating activities
Cash received from investments 373,655 335,085 1,203,692
Interest received 171,326 119,846 -
Investment management fees
paid (63,219) (45,000) (95,795)
Cash paid to and on behalf
of employees - (1,167) (1,167)
Other cash payments (162,223) (146,137) (263,981)
Tax recoverable (6,896) (1,919) -
---------------------------------- ------------------ ---------------------
Net cash inflow from operating
activities 312,643 260,708 842,749
---------------------------------- ------------------ ---------------------
Cash flows from financing activities
Dividends paid on ordinary
shares (357,904) (510,609) (868,513)
---------------------------------- ------------------ ---------------------
Net cash outflow from financing
activities (357,904) (510,609) (868,513)
---------------------------------- ------------------ ---------------------
Cash flows from investing activities
Purchase of investments (4,042,249) (2,321,667) (6,497,746)
Sale of investments 4,553,126 3,554,758 6,465,917
---------------------------------- ------------------ ---------------------
Net cash inflow/(outflow) from
investing activities 510,877 1,233,091 (31,829)
---------------------------------- ------------------ ---------------------
Net increase/(decrease) in
cash and cash equivalents 465,616 983,190 (57,593)
---------------------------------- ------------------ ---------------------
Reconciliation of net cash
flow to movement in net cash
Increase/(decrease) in cash 465,616 983,190 (57,593)
Exchange rate movements (163) (58) (137)
---------------------------------- ------------------ ---------------------
Increase/(decrease) in net
cash 465,453 983,132 (57,730)
Net cash at start of period 785,703 843,433 843,433
---------------------------------- ------------------ ---------------------
Net cash at end of period 1,251,156 1,826,565 785,703
---------------------------------- ------------------ ---------------------
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2019
1. Significant accounting policies
Basis of Preparation
The condensed consolidated financial statements, which comprise
the unaudited results of the Company and its wholly owned
subsidiaries, Abport Limited and New Centurion Trust Limited,
together referred to as the "Group", have been prepared in
accordance with IFRS, as adopted by the United Kingdom, and as
applied in accordance with the provisions of the Companies Act
2006. The financial statements have been prepared in accordance
with the AIC SORP, except to any extent where it is not consistent
with the requirements of IFRS. The accounting policies are as set
out in the Report and Accounts for the year ended 30 June 2019.
The half-year financial statements have been prepared in
accordance with IAS 34 "Interim Financial Reporting".
The financial information contained in this half year financial
report does not constitute statutory accounts as defined by the
Companies Act 2006.The financial information for the periods ended
31 December 2019 and 31 December 2018 have not been audited or
reviewed by the Company's Auditor. The figures and financial
information for the year ended 30 June 2019 are an extract from the
latest published audited statements, and do not constitute the
statutory accounts for that year. Those accounts have been
delivered to the Registrar of Companies and include a report of the
Auditor, which was unqualified and did not contain a statement
under either Section 498(2) or 498(3) of the Companies Act
2006.
Going Concern
The Directors have made an assessment of the Group's ability to
continue as a going concern and are satisfied that the Group has
adequate resources to continue in operational existence for the
foreseeable future (being a period of 12 months from the date these
financial statements were approved). Furthermore, the Directors are
not aware of any material uncertainties that may cast significant
doubt upon the Group's ability to continue as a going concern,
having taken into account the liquidity of the Group's investment
portfolio and the Group's financial position in respect of its cash
flows, borrowing facilities and investment commitments (of which
there are none of significance).Therefore, the financial statements
have been prepared on the going concern basis and on the basis that
approval as an investment trust will continue to be met.
Segmental Reporting
The Directors are of the opinion that the Group is engaged in a
single segment of business, being investment business.
The Group primarily invests in companies listed in the UK.
2. Income
31 December 31 December 30 June
2019 2018 (unaudited) 2019 (audited)
(unaudited) GBP GBP
GBP
--------------------------------------------- ------------------ -------------------
Income from investments:
UK dividends 308,156 236,944 848,003
Un-franked dividend
income 24,964 25,583 46,335
UK fixed interest 162,810 117,094 259,933
--------------------------------------------- ------------------ -------------------
495,930 379,621 1,154,271
Other income:
Net dealing gains of
subsidiaries - (131) -
--------------------------------------------- ------------------ -------------------
Total income 495,930 379,490 1,154,271
--------------------------------------------- ------------------ -------------------
3. Return per Ordinary Share
Returns per share are based on the weighted average number of
shares in issue during the period. Normal and diluted return per
share are the same as there are no dilutive elements on share
capital.
Year ended
6 months to 31 6 months to 31
December 2019 December 2018 30 June 2019
(unaudited) (unaudited) (audited)
Net return Per share Net return Per share Net return Per share
GBP pence GBP pence GBP pence
----------- ---------- ------------ ---------- ----------- ----------
Return
on total
comprehensive
income
Revenue 295,803 6.20 198,886 4.17 752,636 15.77
Capital 1,326,920 27.81 (1,399,688) (29.33) (597,905) (12.53)
Total comprehensive
income 1,622,723 34.01 (1,200,802) (25.16) 154,731 3.24
----------- ---------- ------------ ---------- ----------- ----------
Weighted
average
number
of
ordinary
shares 4,772,049 4,772,049 4,772,049
----------- ---------- ------------ ---------- ----------- ----------
4. Dividends per Ordinary Share
Amounts recognised as distributions to equity holders in the
period.
6 months 6 months
to to
Year ended
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP GBP GBP
Ordinary Shares
Interim dividend of 5.70p
paid on 31 August 2018 - 272,007 272,007
Interim dividend of 5.70p
paid on 23 November 2018 - 238,602 178,952
Interim dividend of 3.75p
paid on 13 February 2019 - - 178,952
Interim dividend of 3.75p -
paid on 24 May 2019 -
Interim dividend of 3.75p 178,952 - -
paid on 30 August 2019
Interim dividend of 3.75p 178,952 - -
paid on 23 November 2019
Total income 357,904 510,609 868,513
The Board declared an interim dividend of 3.75p per ordinary
share, which was paid on 19 February 2020 to shareholders
registered at the close of business on 17 January 2020. This
dividend has not been included as a liability in these financial
statements.
5. Ordinary Share Capital
Year ended
6 months to 31 6 months to 31
December 2019 December 2018 30 June 2019
(unaudited) (unaudited) (audited)
Number GBP Number GBP Number GBP
---------- ---------- ---------- ---------- ---------- ----------
Ordinary
shares
of 50p
each 4,772,049 2,386,025 4,772,049 2,386,025 4,772,049 2,386,025
---------- ---------- ---------- ---------- ---------- ----------
The Company does not hold any shares in treasury as at 31
December 2019 (31 December 2018: Nil and 30 June 2019: Nil).
6. Net Asset Value per Ordinary Share
Net asset value per ordinary share is based on net assets at the
period end and 4,772,049 (31 December 2018: 4,772,049 and 30 June
2019: 4,772,049) ordinary shares in issue at the period end
excluding shares held in treasury if any.
7. Investment Management fee
The management fee payable monthly in arrears by the Company to
the Investment Manager, Fiske plc is calculated at the rate of
one-twelfth of 0.75% of the NAY as at the last business day of each
calendar month.
At 31 December 2019 an amount of GBP11,175 (31 December 2018:
GBP7,500 and 30 June 2019: GBP10,402) was outstanding and due to
the Investment Manager.
8. Fair Value Hierarchy
The fair value is the amount at which an asset could be sold in
an ordinary transaction between market participants at the
measurement date, other than a forced or liquidation sale. The
Group measures fair values using the following hierarchy that
reflects the significance of the inputs used in making the
measurements.
Categorisation within the hierarchy has been determined on the
basis of the lowest level input that is significant to the fair
value measurement of the relevant asset as follows:
Level 1 - valued using quoted prices, unadjusted in active
markets for identical assets and liabilities.
Level 2 - valued by reference to valuation techniques using
observable inputs for the asset or liability other than quoted
prices included in Level 1.
Level 3 - valued by reference to valuation techniques using
inputs that are not based on observable market data for the asset
or liability.
The table below sets out fair value measurement of financial
instruments as at 31 December 2019, by the level in the fair value
hierarchy into which the fair value measurement is categorised.
At 31 December 2019 Level 1 Level 2 Level 3 Total
GBP GBP GBP GBP
Financial assets at fair
value through profit and
loss 13,474,671 287,477 2,831,524 16,593,672
---------- ------- --------- ----------
13,474,671 287,477 2,831,524 16,593,672
---------- ------- --------- ----------
At 31 December 2018
Financial assets at fair
value through profit and
loss 9,327,357 310,136 4,072,381 13,709,874
---------- ------- --------- ----------
9,327,357 310,136 4,072,381 13,709,874
---------- ------- --------- ----------
At 30 June 2019
Financial assets at fair
value through profit and
loss 12,524,512 300,353 2,952,248 15,777,113
---------- ------- --------- ----------
12,524,512 300,353 2,952,248 15,777,113
---------- ------- --------- ----------
Reconciliation of Level 3 investments
The following table summarises Level 3 investments that were
accounted for at fair value.
6 months to 6 months Year ended
31 December to 31 December 30 June
2019 (unaudited) 2018 (unaudited) 2019 (audited)
GBP GBP GBP
--------------------------- ------------------ ------------------
Opening balance 2,952,248 4,823,780 4,823,780
Transfer to level 1 - - (1,056,120)
Movement in unrealised gains/(losses)
on investments at fair value
through profit or loss 133,718 228,596 206,423
Realised gains/(losses) 120,660 (306,957) 45,398
Sales proceeds (375,102) (673,038) (1,067,233)
--------------------------- ------------------ ------------------
Closing balance 2,831,524 4,072,381 2,952,248
--------------------------- ------------------ ------------------
9. Transactions with the Investment Manager and related parties
As disclosed in note 7 a fee is paid to the Investment Manager
in respect of the services provided to the Company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SFLFMSESSELE
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