TIDMINV
RNS Number : 5084B
Investment Company PLC
14 February 2022
The Investment Company plc
Half Year Report Announcement (Unaudited) for the six months
ended 31 December 2021
Summary of Results
At 31 December At 30 June
2021
(unaudited) 2021
(audited) Change %
----------------------------- --------------- ----------- ----------
Equity Shareholders' funds
(GBP) 16,666,708 16,281,804 2.36
Number of ordinary shares
in issue 4,772,049 4,772,049 -
Net asset value ("NAV") per
ordinary share 349.26p 341.19p 2.36
Ordinary share price (mid) 308.00p 309.00p (0.32)
Discount to NAV 11.81% 9.43% (2.38)
----------------------------- --------------- ----------- ----------
6 months to Year ended
31 December 30 June
2021
(unaudited) 2021
(audited)
----------------------------- --------------- ----------- ----------
Total return per ordinary
share * 8.07p (29.08)p
Dividends paid per ordinary
share nil 3.00 p
* The total return per ordinary share is based on total income
after taxation as detailed in the Condensed consolidated income
statement and in note 3.
Investment Objective
At the Annual General Meeting on 4 November 2020, Shareholders
voted to amend the Company's Investment Objective and Policy to
that shown below.
The Company's investment objective is to protect the purchasing
power of its capital in real terms, and to participate in enduring
economic activities which lend themselves to genuine capital
accumulation and wealth creation.
Investment Policy
The Company will seek to acquire and hold, with no predetermined
investment time horizon, a collection of assets which, in the
Directors' judgement, are well-suited to the avoidance of a
permanent loss of capital. These assets will be comprised of
minority participations in the equity, debt or convertible
securities of quoted businesses which the Directors believe are led
by responsible and like-minded managers and suitable for the
long-term compounding of earnings. In addition, to protect its
capital as well as to maintain liquidity for future investments,
the Company will keep reserves in (a) liquid debt instruments such
as cash in banks or securities issued by governments and/or (b)
liquid, non-debt, tangible assets such as gold bullion, whether
held indirectly or in physical form.
The Company has no predetermined maximum or minimum levels of
exposure to asset classes, currencies or geographies, and has the
ability to invest globally. These exposures will be monitored by
the Board in order to ensure an adequate spreading of risks. No
holding in an individual company or debt instrument will represent
more than 15 per cent. by value of the Company's total assets at
the time of acquisition (such restriction does not, however, apply
to gold bullion or cash balances). The Company's holdings of gold
bullion may be as high as 35 per cent. of total assets at the time
of investment.
Given the Company's investment objective, asset mix and time
horizon, the portfolio will not seek to track any benchmark or
index. The Company will not invest more than 10 per cent. of its
total assets in other listed closed-ended investment funds. The
Company will not use derivative instruments for speculative
purposes, nor will it use currency hedges to manage returns in any
currency.
The Company's gearing will not exceed 20 per cent. of net assets
at the time of drawdown.
No material change will be made to the investment policy without
the approval of Shareholders by ordinary resolution.
Chairman's Statement
Dear fellow shareholders,
Results
During the six-month period ended 31 December 2021, the Group's
net assets increased by 8.07 pence per share to 349.26 pence per
share. This represents a total return of 2.36%. The details of this
return are outlined in the table below.
6 months to Year ended
31 December 2021 30 June 2021
Pence per Pence per
share % share %
------------------------------ ----------- ------- ---------- -------
Opening net assets 341.19 100.00 315.11 100.00
Gain on portfolio valuations 8.62 2.53 27.57 8.75
Investment income 3.12 0.91 14.75 4.68
Expenses (3.67) (1.08) (13.24) (4.20)
Dividends paid - - (3.00) (0.95)
------------------------------ ----------- ------- ---------- -------
Closing net assets 349.26 2.36 341.19 8.28
------------------------------ ----------- ------- ---------- -------
Equity Participations
During the half year we sold in aggregate shares worth GBP1.7
million realising a gain of GBP0.4 million (+28%), and we purchased
shares worth GBP2.6 million. This increased our equity
participations from 66.7% to 72.1% of net assets. We are looking
forward to further opportunities to add to our existing
holdings.
We sold out of three holdings entirely. We sold our small
position in Fromageries Bel for a 23% gain because the founding
family is taking the business private and delisting the shares. We
sold the rest of our Rio Tinto shares for a 14% gain. Our existing
interest in oil and precious metals producers is already
substantial and having a few firms like this in our collection will
go a long way toward preparing us from any inflationary storms
ahead, whether transitory or not. We also sold out of Unilever
realising a 6% loss. The brand strength and their entrenched
position in so many countries remain a wonderful asset, and the
shares undervalued, but an undue focus on managing to a sterile ESG
mandate and institutional expectations doesn't sit well with us.
Whenever our priorities differ from the managers the decision to
sell becomes an easy one.
We sold part of our stake in Safilo realising a 95% gain.
Despite operating during two difficult years the turnaround under
their new CEO has gone exceptionally well. Later in the year,
Safilo also conducted a rights offering which eliminated most of
their debt burden and enables them to embark on an investment
program after a period of downsizing. We also bought shares in the
offering on very attractive terms.
We reduced our holding in Strix after a period of substantial
price appreciation, realising a 172% gain. Credit goes to our prior
investment manager for buying the shares well. Holding great
businesses at high prices is not a problem for us - we expect most
of our holdings to meet these criteria eventually - but it demands
a conviction which for us has to come from a proven capacity to
execute within their specialty for many years. The promise of
future growth in new product categories, though welcome, is not
something our objective places a premium on.
We added four new holdings during the half year: Robertet, the
world's pre-eminent producers of all-natural flavours and
fragrances; Kri Kri Milk, a premium Greek dairy company
specialising in exporting ice cream and yogurt; Crete Plastics, a
European producer of masterbatches for plastics manufacturing and
specialty agricultural films; and Karelia Tobacco, a family-owned
Greek cigarette producer serving markets in Southeast Europe and
across the Mediterranean. These are all multi-generational,
family-owned businesses with decades of deep experience in
relatively narrow markets. They have demonstrated a constant drive
to reinvest in new capacities and add to their business strengths,
show a history of operating with care and we think they can develop
their markets for decades to come. Though Robertet is 'a great
business at a high price', the other three are smaller companies,
completely unknown outside of their local markets and, fortunately
for us, priced to reflect their relative obscurity. Though not
small in any business sense, these companies are controlled by the
founding families and a fairly small group of other real, long-term
owners. We count ourselves among them.
For our existing holdings, we continued to add to Cembre, Lucas
Bols, Hal Trust and Nedap.
Legacy Assets
We sold out of our three largest legacy fixed income holdings,
generating GBP629k in proceeds and realising a 3% gain. This
reduced the legacy holdings down to 0.4% of net assets and marks
the end of the transition from the prior portfolio. The fixed 5% to
6% yields on these instruments were once alluring, but in the
present inflationary environment they look for our purposes like
wasting assets. It's better that the proceeds be invested in
business where time is our ally rather than having it count down
the erosion of our capital.
Precious Metals
With consumer price inflation finally arriving in the UK our
reasons for holding gold are unchanged - they form a liquid reserve
that we believe will retain its purchasing power across periods of
inflation and monetary disorder. As with our stakes in businesses,
the intended time horizon of our holding matters a great deal. Gold
is not suitable as a short-term hedge against rising consumer
prices, and though one could speculate on its price that is not our
reason for holding it. Gold has the curious property that as we
extend our gaze further into the future, and as we broaden our
understanding of the myriad effects of monetary debasement, the
more suitable it appears.
There were no changes to our gold holdings in the period, as new
equity purchases were largely offset against the sales of other
shares and our remaining legacy assets.
Income and costs
Total income for the first six months came to GBP162k, while
expenses totalled GBP175k. There were no extraordinary expenses in
the period, and we believe current expenses are indicative of
ongoing expenses for the Group. At our present size, we expect
investment income to largely - but not completely - offset expenses
for the full year.
Foreign Exchange
The Group reports its results in Sterling, but as of 31 December
2021 91.0% of our portfolio was invested in companies, securities
and reserve assets denominated in other currencies and we expect
this to continue in the future. Because of this shift any
strengthening or weakening of Sterling against these currencies
will now have a direct impact on our financial results in future
periods. We will not employ any currency hedging to manage the
returns as expressed in Sterling as we believe the exercise would
be both costly and counter to our purpose.
Although we have had a total return of some GBP385k in the half
year, this arises from our capital rather than income and the
Directors do not propose to pay an interim dividend.
Outlook
The Board welcomes dialogue with our Shareholders who will find
details of how to contact us at the Company's website,
www.theinvestmentcompanyplc.co.uk.
In these uncertain and volatile times, we believe the Company is
well positioned to provide Shareholders with capital preservation
and wealth creation over the long-term. Furthermore, we continue to
evaluate opportunities to grow the capital base.
I. R. Dighé
Chairman
14 February 2022
Portfolio Summary
Asset Exposure by Trading Currency
At 31 December 2021
% of net
Currency assets
---------------- --------
GBP 9%
EUR 41%
CAD 8%
CHF 6%
NOK 3%
USD 7%
Precious Metals 26%
--------
Total 100%
--------
Equity Participations - Regional Economic Exposure*
At 31 December 2021
% of equity
Region participations
-------------------- ---------------
Europe 51%
North America 25%
South America 7%
Asia, Africa, Other 17%
---------------
Total 100%
---------------
Equity Participations - By Sector *
At 31 December 2021
% of equity
Sector participations
---------------- ---------------
Consumer Goods 46%
Industrials 34%
Basic Materials 10%
Oil & Gas 10%
---------------
Total 100%
---------------
*Director estimates. Regional Economic Exposure represents where
in the world the underlying business activity of the equity
participations takes place.
Portfolio and Asset s
At 31 December 2021
Fair Value % of net
Security Country Holding GBP assets
------------------------------- --------------- --------- ------------ ----------
Hal Trust Netherlands 12,000 1,469,388 8.8%
Karelia Tobacco Greece 3,250 758,797 4.6%
Tonnellerie François
Frères Group France 32,000 752,499 4.5%
British American Tobacco UK 27,000 738,046 4.4%
Cembre Italy 24,500 703,705 4.2%
Lucas Bols Netherlands 70,731 696,202 4.2%
Imperial Oil Canada 26,000 690,969 4.2%
Barrick Gold Canada 45,000 634,413 3.8%
Emmi Switzerland 700 612,109 3.7%
Crete Plastics Greece 39,461 589,909 3.5%
Bakkafrost Faroe Islands 12,000 588,861 3.5%
Lukoil ADR Russia 7,500 498,071 3.0%
Nedap Netherlands 9,000 473,167 2.8%
Bucher Industries Switzerland 1,200 439,822 2.6%
Safilo Group Italy 300,000 396,573 2.4%
Robertet France 460 376,669 2.3%
Franco-Nevada Canada 3,600 366,879 2.2%
Strix Group UK 120,000 364,200 2.2%
Kri-Kri Milk Industries Greece 38,929 277,901 1.7%
ForFarmers Netherlands 80,000 271,101 1.6%
Alamos Gold Canada 43,000 243,732 1.5%
Legacy holdings Various 67,407 0.4%
------------ ----------
Total equity participations 12,010,420 72.1%
------------ ----------
Invesco Physical Gold ETC UK 15,000 1,958,560 11.7%
WisdomTree Physical Gold ETC UK 9,500 1,210,956 7.3%
WisdomTree Physical Swiss
Gold ETC Switzerland 9,000 1,169,325 7.0%
------------ ----------
Total gold 4,338,841 26.0%
------------ ----------
Sterling cash 363,908 2.2%
Other liabilities net of other
assets (46,461) (0.3)%
------------ ----------
Total cash less other net
current liabilities 317,447 1.9%
------------ ----------
Total net assets 16,666,708 100.0%
------------ ----------
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 above.
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 2021 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 Group's
management of these risks and exposure to them is set out in the
Group's Report and Accounts for the year ended 30 June 2021.
There have been no significant changes in the related party
disclosures set out in the Annual Report.
Directors' 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 14 February 2022 and the above responsibility
statement was signed on its behalf by I. R. Dighe , Chairman.
Condensed consolidated income statement
For the six months ended 31 December 2021 (unaudited)
6 months to 31 6 months to 31 Year ended 30 June
December 2021 December 2020 2021
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes GBP GBP GBP GBP GBP GBP GBP GBP GBP
--------- ------- --------- --------- ------- --------- --------- --------- ---------
Gains on
investments
at fair
value through
profit or
loss - 414,942 414,942 - 329,396 329,396 - 1,315,694 1,315,694
Exchange
(loss) on
capital
items - (3,515) (3,515) - (660) (660) - (88) (88)
Investment
income 2 161,894 - 161,894 502,481 - 502,481 724,585 - 724,585
Investment
management
fee 7 - - - (56,543) - (56,543) (96,825) - (96,825)
Other expenses (175,482) - (175,482) (328,551) (323) (328,874) (535,120) - (535,120)
--------- ------- --------- --------- ------- --------- --------- --------- ---------
Return before
taxation (13,588) 411,427 397,839 117,387 328,413 445,800 92,640 1,315,606 1,408,246
Taxation (12,935) - (12,935) (1,219) - (1,219) (20,338) - (20,338)
--------- ------- --------- --------- ------- --------- --------- --------- ---------
Total
(loss)/income
after taxation (26,523) 411,427 384,904 116,168 328,413 444,581 72,302 1,315,606 1,387,908
--------- ------- --------- --------- ------- --------- --------- --------- ---------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
pence pence pence pence pence pence pence pence pence
--------- ------- --------- --------- ------- --------- --------- --------- ---------
Return on
total income
after taxation
per 50p
ordinary
share -
basic &
diluted 3 (0.55) 8.62 8.07 2.43 6.88 9.31 1.51 27.57 29.08
--------- ------- --------- --------- ------- --------- --------- --------- ---------
The total column of this statement is the Income Statement of
the Group prepared in accordance with IFRS as adopted by the United
Kingdom. The supplementary revenue and capital columns are prepared
in accordance with the Statement of Recommended Practice ("AIC
SORP") issued in April 2021 by the Association of Investment
Companies.
The Group did not have any income or expenses that was not
included in total income for the period. Accordingly, total income
is also total comprehensive income for the period, as defined by
IAS 1 (revised) and no separate Statement of Comprehensive Income
has been presented.
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued
during the period.
The notes form part of these condensed financial statements.
Condensed consolidated statement of changes in equity
For the six months ended 31 December 2021 (unaudited)
Capital
Share Share redemption Capital Revenue
capital premium reserve reserve reserve Total
GBP GBP GBP GBP GBP GBP
------------------ --------------- ------------------ --------- ----------- ----------
Balance at 1 July
2021 2,386,025 4,453,903 2,408,820 8,410,600 (1,377,544) 16,281,804
Total comprehensive
income
Net return for
the period - - - 411,427 (26,523) 384,904
Transactions with
Shareholders recorded
directly to equity
Ordinary dividends
paid - (note 4) - - - - - -
------------------ --------------- ------------------ --------- ----------- ----------
Balance at 31 December
2021 2,386,025 4,453,903 2,408,820 8,822,027 (1,404,067) 16,666,708
------------------ --------------- ------------------ --------- ----------- ----------
Balance at 1 July
2020 2,386,025 4,453,903 2,408,820 7,094,994 (1,306,685) 15,037,057
Total comprehensive
income
Net return for
the period - - - 328,413 116,168 444,581
Transactions with
Shareholders recorded
directly to equity
Ordinary dividends
paid - (note 4) - - - - (95,441) (95,441)
------------------ --------------- ------------------ --------- ----------- ----------
Balance at 31 December
2020 2,386,025 4,453,903 2,408,820 7,423,407 (1,285,958) 15,386,197
------------------ --------------- ------------------ --------- ----------- ----------
Balance at 1 July
2020 2,386,025 4,453,903 2,408,820 7,094,994 (1,306,685) 15,037,057
Total comprehensive
income
Net return for
the year - - - 1,315,606 72,302 1,387,908
Transactions with
Shareholders recorded
directly to equity
Ordinary dividends
paid - (note 4) - - - - (143,161) (143,161)
------------------ --------------- ------------------ --------- ----------- ----------
Balance at 30 June
2021 2,386,025 4,453,903 2,408,820 8,410,600 (1,377,544) 16,281,804
------------------ --------------- ------------------ --------- ----------- ----------
The notes form part of these condensed financial statements.
Condensed consolidated balance sheet
At 31 December 2021 (unaudited)
31 December 31 December 30 June
2021 2020 2021
Notes GBP GBP GBP
----------- ----------- -----------
Non-current assets
Investments held at fair value through
profit or loss 8 16,349,261 14,224,363 15,618,864
----------- ----------- -----------
Current assets
Trade and other receivables 51,961 67,268 389,029
Cash and cash equivalents 363,908 1,221,865 540,800
----------- ----------- -----------
415,869 1,289,133 929,829
----------- ----------- -----------
Current liabilities
Trade and other payables (98,422) (127,299) (266,889)
----------- ----------- -----------
(98,422) (127,299) (266,889)
----------- ----------- -----------
Net current assets 317,447 1,161,834 662,940
----------- ----------- -----------
Net assets 16,666,708 15,386,197 16,281,804
----------- ----------- -----------
Capital and reserves
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 8,822,027 7,423,407 8,410,600
Revenue reserve (1,404,067) (1,285,958) (1,377,544)
----------- ----------- -----------
Shareholders' funds 16,666,708 15,386,197 16,281,804
----------- ----------- -----------
NAV per ordinary share of 50p 6 349.26p 322.42p 341.19p
----------- ----------- -----------
The notes form part of these condensed financial statements.
Condensed consolidated cash flow statement
For the six months ended 31 December 2021 (unaudited)
31 December 31 December 30 June
2021 2020 2021
GBP GBP GBP
----------- ------------ ------------
Cash flows (used in)/generated from
operating activities
Income received from investments 131,236 517,128 777,299
Interest received 38 9,792 9,792
Overseas taxation paid (747) - (19,195)
Investment management fees paid (1,678) (56,323) (104,544)
Other cash payments (200,847) (341,076) (564,381)
----------- ------------ ------------
Net cash (used in)/generated from
operating activities (71,998) 129,521 98,971
----------- ------------ ------------
Cash flows used in financing activities
Dividends paid on ordinary shares - (95,441) (143,161)
----------- ------------ ------------
Net cash used in financing activities - (95,441) (143,161)
----------- ------------ ------------
Cash flows (used in)/generated from
investing activities
Purchase of investments (2,775,667) (10,953,343) (13,442,242)
Sale of investments 2,674,274 11,876,736 13,762,164
----------- ------------ ------------
Net cash (used in)/generated from
investing activities (101,393) 923,393 319,922
----------- ------------ ------------
Net ( decrease)/increase in cash
and cash equivalents (173,391) 957,473 275,732
----------- ------------ ------------
Reconciliation of net cash flow
to movement in net cash
(Decrease)/increase in cash (173,391) 957,473 275,732
Exchange rate movements (3,501) (660) 16
----------- ------------ ------------
(Decrease)/increase in net cash (176,892) 956,813 275,748
Net cash at start of period 540,800 265,052 265,052
----------- ------------ ------------
Net cash at end of period 363,908 1,221,865 540,800
----------- ------------ ------------
Analysis of net cash
Cash and cash equivalents 363,908 1,221,865 540,800
----------- ------------ ------------
363,908 1,221,865 540,800
----------- ------------ ------------
Condensed notes to the consolidated financial statements
At 31 December 2021 (unaudited)
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 2021.
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 2021 and 31 December 2020 have not been audited or
reviewed by the Company's Auditor. The figures and financial
information for the year ended 30 June 2021 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. This has included consideration of
portfolio liquidity, the Group's financial position in respect of
its cash flows and investment commitments (of which there are none
of significance), the working arrangements of the key service
providers, continued eligibility to be approved as an investment
trust company and the continued impact of the Covid-19 pandemic. In
addition, 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.
The Directors are satisfied that the Group has the resources to
continue in business for the foreseeable future being a period of
at least 12 months from the date that these financial statements
were approved. Therefore, the financial statements have been
prepared on the going concern basis.
Segmental Reporting
The Directors are of the opinion that the Group is engaged in a
single segment of business, being investment business.
2. Income
6 months 6 months
to to Year ended
31 December 31 December 30 June
2021 2020 2021
GBP GBP GBP
------------ ------------ ----------
Income from investments:
UK dividends 103,326 354,598 438,996
Unfranked dividend income 67,344 5,051 132,143
UK fixed interest (8,814) 133,040 143,654
------------ ------------ ----------
161,856 492,689 714,793
Other income
Bank deposit and other interest 38 9,792 9,792
Total income 161,894 502,481 724,585
------------ ------------ ----------
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 returns per
share are the same as there are no dilutive elements on share
capital.
6 months to 6 months to Year ended
31 December 2021 31 December 2020 30 June 2021
Net return Pence Net return Pence Net return Pence
GBP per share GBP per share GBP per share
---------- ---------- ---------- ---------- ----------- ----------
Return after taxation
attributable to
ordinary Shareholders
Revenue (26,523) (0.55) 116,168 2.43 72,302 1.51
Capital 411,427 8.62 328,413 6.88 1,315,606 27.57
---------- ---------- ---------- ---------- ----------- ----------
Total comprehensive
income 384,904 8.07 444,581 9.31 1,387,908 29.08
---------- ---------- ---------- ---------- ----------- ----------
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 31 to 31 Year ended
December December 30 June
2021 2020 2021
GBP GBP GBP
--------- --------- ----------
Ordinary shares
Interim dividend of 1.00p paid on
7 September 2020 - 47,720 47,720
Interim dividend of 1.00p paid on
4 December 2020 - 47,721 47,720
Interim dividend of 1.00p paid on
26 February 2021 - - 47,721
Total - 95,441 143,161
--------- --------- ----------
5. Ordinary Share Capital
31 December 2021 31 December 2020 30 June 2021
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 2021 (31 December 2020: Nil and 30 June 2021: Nil).
6. Net Asset Value per Ordinary Share
The NAV per ordinary share is calculated as follows:
31 December 31 December
2021 2020 30 June 2021
GBP GBP GBP
----------- ----------- ------------
Net assets 16,666,708 15,386,197 16,281,804
----------- ----------- ------------
Ordinary shares in issue 4,772,049 4,772,049 4,772,049
----------- ----------- ------------
NAV per ordinary share 349.26p 322.42p 341.19p
----------- ----------- ------------
7. Investment Management fee
Pursuant to the changes to the Company's Investment Objective
and Policy, the Investment Manager, Fiske plc, was given notice to
terminate the investment management agreement as of 5 May 2021.
The management fee payable monthly in arrears by the Company to
the Investment Manager, was previously calculated at the rate of
one-twelfth of 0.75% of the NAV as at the last business day of each
calendar month.
At 31 December 2021, an amount of GBPnil (31 December 2020:
GBP9,675 and 30 June 2021: GBP1,678) 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 2021, by the level in the fair value
hierarchy into which the fair value measurement is categorised.
Level
1 Level 2 Level 3 Total
GBP GBP GBP GBP
---------- ------- ------- ----------
At 31 December 2021
Investments held at fair value
through profit or loss 16,282,652 - 66,609 16,349,261
---------- ------- ------- ----------
At 31 December 2020
Investments held at fair value
through profit or loss 13,241,128 - 983,235 14,224,363
---------- ------- ------- ----------
At 30 June 2021
Investments held at fair value
through profit or loss 15,024,544 - 594,320 15,618,864
---------- ------- ------- ----------
Reconciliation of Level 3 investments
The following table summarises Level 3 investments that were
accounted for at fair value.
31 December 31 December 30 June
2021 2020 2021
GBP GBP GBP
----------- ----------- -----------
Opening balance 594,320 2,030,066 2,030,066
Sales proceeds* (573,939) (1,095,168) (1,545,167)
Gains on investments 46,228 48,337 109,421
Closing balance 66,609 983,235 594,320
----------- ----------- -----------
* The Group and Company received GBP573,939 from investments
sold in the period. The book cost of these investments when they
were purchased was GBP518,840. These investments have been revalued
over time and until they were sold any unrealised gains/(losses)
were included in the fair value of investments.
9. Related party transactions
During the first six months of the financial year, no
transactions with related parties have taken place which have
materially affected the financial position or performance of the
Group.
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END
IR SFFFADEESELE
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February 14, 2022 02:00 ET (07:00 GMT)
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