Jupiter Second Split PLC
Announcement of Unaudited Interim Results for the half year to 30th April 2006
CHAIRMAN'S STATEMENT
During the six months to 30th April 2006 the Companys total assets rose by 29.3
per cent. This compares with a rise of 14.8 per cent. in the Companys
composite benchmark index.
Revenue before tax for the six months was �395,000 as compared with �129,000 for
the corresponding period to 30th April 2005. As with last year, no interim
dividend has been declared. However, a dividend is expected to be paid in
January 2007 which will reflect the bulk of net revenues for the current
financial year.
Strong outperformance during the period under review resulted principally from
a heavy emphasis within the portfolio on oil and mining shares. There was also
a benefit from investing in European financial companies which have
significant operations in capital and emerging markets. Resource prices
continued to be strong and equity markets performed well, especially in emerging
economies.
Since the end of the period there has been a sharp correction in equity markets
and a much more risk averse mood has set in. As at 30th June 2006 the growth in
your Companys total assets since the last financial year end (on 31st October
2005) had reduced to 19.5 per cent., which compares with a return of 10.2 per
cent. on the Companys composite benchmark index over the same period. This
correction appears to us to have been too severe in the context of a number of
factors. Firstly, equities as an asset class continue to look attractive.
Indeed, relative to bonds, equities are at one of the cheapest valuation levels
seen in the last thirty years. Secondly, inflationary concerns appear overdone
in the context of a weakening US housing market and strong global competitive
forces, partly the result of technological advances. Thirdly, economic growth
continues to be healthy, especially in China and India, as capitalism develops
from a low base.
Resource prices have been strong for a significant period, but it is generally
accepted that major oil and commodity stocks are discounting significant
reversals in oil and commodity prices. Such reversals may not materialise in
the context of likely further strong demand and some supply shortages. A
cautious stance on UK banks still look appropriate given high consumer debt
levels but valuations on many European banks look exceptionally low.
We continue to draw down a loan facility of �10 million and are therefore
employing a modest element of gearing to take advantage of investment
opportunities.
Gordon Campbell
Chairman
20th July 2006
TWENTY LARGEST INVESTMENTS
as at 30th April 2006
Market Percentage of
Company Value Total Investments
�000
BP 12,177 8.8
Cairn Energy 9,300 6.7
UBS 7,803 5.6
Templeton Emerging Markets 7,136 5.1
Societe Generale 6,294 4.5
Kazakhmys 5,918 4.3
Deutsche Bank 5,374 3.9
Premier Oil 5,135 3.7
RAB Capital Energy Class A 4,038 2.9
RAB Special Situations 3,828 2.8
Vodafone 3,238 2.3
Absolute Capital Management 3,043 2.2
Mitsubishi UFJ Financial Group 3,018 2.2
Vedanta Resources 2,755 2.0
Skandia Enskilda 2,722 2.0
Anglo American 2,569 1.9
KBC Group 2,549 1.8
RAB Capital Index Opportunities 2,484 1.8
Equest Balkan Properties 2,442 1.8
BHP Billiton 2,258 1.6
______ ____
94,081 67.9
CROSS HOLDINGS IN OTHER INVESTMENT COMPANIES
As at 30th April 2006, 9.4 per cent. of the Companys Total Assets were invested
in the securities of other UK listed investment companies. It is the Companys
stated policy that not more than 10 per cent., in aggregate, of Total Assets may
be invested in other listed investment companies unless such companies have
stated investment policies to invest no more than 15 per cent. of their Total
Assets in other listed investment companies (including listed investment
trusts). As at 30th April 2006, 1.3 per cent. of the Companys Total Assets
were invested in listed investment companies that have not made such a
statement.
CONSOLIDATED INCOME STATEMENT
for the six months to 30th April 2006
(Unaudited)
Note Six months to Six months to Period ended
30th April 2006 30th April 2005 31st October 2005
(Restated) (Restated)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Return Return Return Return Return Return
�000 �000 �000 �000 �000 �000 �000 �000 �000
Gains on 3 - 34,726 34,726 - 1,126 1,126 - 7,376 7,376
investments
at fair value
______ _____ _____ ______ _______ ______ _____ _____ ______
- 34,726 34,726 - 1,126 1,126 - 7,376 7,376
Income from
fixed asset
investments 1,166 - 1,166 853 - 853 1,910 - 1,910
Bank interest 192 - 192 38 - 38 132 - 132
Other income - - - 1 - 1 1 - 1
Dealing
(losses)/prof
its of
subsidiary - - - (138) - (138) 526 - 526
______ _____ _____ ______ _______ _______ _____ _____ ______
Total income 1,358 34,726 36,084 754 1,126 1,880 2,569 7,376 9,945
______ _____ _____ ______ _______ _______ _____ _____ _______
Investment
management
fee (537) - (537) (396) - (396) (817) - (817)
Investment
performance
fee - (4,384) (4,384) - - - - - -
Other
expenses (177) - (177) (157) - (157) (305) - (305)
______ _____ _____ ______ _______ ______ _____ _____ ______
Total
expenses (714) (4,384) (5,098) (553) - (553) (1,122) - (1,122)
______ _____ _____ ______ ______ ______ ______ ______ ______
Net return
before
finance costs
& tax 644 30,342 30,986 201 1,126 1,327 1,447 7,376 8,823
Interest
payable (249) - (249) (72) - (72) (335) - (335)
Zero Dividend
Preference
shares - (2,181) (2,181) - (2,040)(2,040) - (4,135)(4,135)
______ _____ _____ ______ ______ ______ ______ ______ ______
Net return
before
taxation 395 28,161 28,556 129 (914) (785) 1,112 3,241 4,353
Taxation (87) - (87) (91) - (91) 64 (892) (828)
______ _____ _____ ______ _______ ______ _____ _____ ______
Net
return/(loss)
after
taxation 308 28,161 28,469 38 (914) (876) 1,176 2,349 3,525
______ _____ _____ ______ _______ ______ _____ _____ ______
Earnings per
Geared Growth
share (p) 2 0.32 29.67 29.99 0.04 (0.97) (0.93) 1.25 2.49 3.74
The total column of this statement is the income statement of the Group,
prepared in accordance with IFRS. The supplementary revenue return and capital
return columns are both prepared under guidance produced by the Association of
Investment Trust Companies. All items in the above statement derive from
continuing operations.
No operations were discontinued or acquired in the period.
The financial information does not constitute accounts as defined in section
240 of the Companies Act 1985.
CONSOLIDATED BALANCE SHEET
at 30th April 2006
(Unaudited)
30th April 30th April 31st October
2006 2005 2005
(Restated) (Restated)
Note �000 �000 �000
Non-Current assets
Investments held at fair value through profit or
loss 138,710 93,625 101,991
_______ _______ _______
Current assets
Investment in subsidiary 5,586 7,662 5,586
Prepayments and accrued income 520 275 62
Sales awaiting settlement - 1,888 -
Taxation recoverable 84 2 84
Cash and cash equivalents 6,654 1,714 4,892
_______ _______ _______
12,844 11,541 10,624
_______ _______ _______
Total assets 151,554 105,166 112,615
======= ======= ======
Current liabilities
Bank loan (10,000) (10,000) (10,000)
Interest payable (73) (69) (72)
Taxation payable (779) - (779)
Accruals (375) (299) (305)
Performance fee (4,384) - -
Purchases awaiting settlement (5,319) (293) (458)
_______ _______ _______
(20,930) (10,661) (11,614)
_______ _______ _______
Total assets less current liabilities 130,624 94,505 101,001
Non-Current liabilities
Zero Dividend Preference shares (62,000) (57,724) (59,819)
_______ _______ _______
Net Assets 68,624 36,781 41,182
======= ======= ======
Equity Attributable to Equity Holders
Called up share capital 949 949 949
Share premium 476 476 476
Special reserve 36,249 36,232 36,232
Retained earnings 6 30,950 (876) 3,525
_______ _______ _______
Total equity shareholders funds 68,624 36,781 41,182
======= ======= ======
Net Asset Value per Geared Growth share (pence) 7 72.31 38.76 43.39
CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY
for the six months to 30th April 2006 (Unaudited)
Share Share Special Retained
Capital Premium Reserve Earnings Total
�000 �000 �000 �000 �000
Six months to 30th April 2006
31st October 2005 (restated) 949 476 36,232 3,525 41,182
Net profit for the period - - - 28,469 28,469
Issue expenses recovered - - 17 - 17
Dividends paid and declared:
First interim dividend for period ended
31st October 2005 - - - (1,044) (1,044)
______ _____ _____ _______ _______
Balance at 30th April 2006 949 476 36,249 30,950 68,624
______ _____ _____ _______ _______
Period ended 31st October 2005
1st November 2004 (restated) 939 36,232 - - 37,171
Cancel share premium - (36,232) 36,232 - -
Shares issued 10 476 - - 486
Net profit for the period - - - 3,525 3,525
______ _____ _____ _______ _______
Balance at 31st October 2005 (restated) 949 476 36,232 3,525 41,182
______ _____ _____ _______ _______
Six months to 30th April 2005
1st November 2004 (restated) 939 36,232 - - 37,171
Cancel share premium - (36,232) 36,232 - -
Shares issued 10 476 - - 486
Net profit for the period - - - (876) (876)
______ _____ _____ _______ _______
Balance at 30th April 2005 (restated) 949 476 36,232 (876) 36,781
______ _____ _____ _______ _______
CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30th April 2006
(Unaudited)
Six months to Six months to Period ended
30th April 2006 30th April 2005 31st October 2005
(Restated) (Restated)
�000 �000 �000
Cash flows from operating activities
Investment income received 710 611 1,891
Deposit interest received 177 32 111
Investment management fee paid (462) (204) (607)
Sales less purchases of dealing subsidiary - (7,800) (5,060)
Other cash receipts 13 (25) (20)
Other cash expenses (164) (50) (228)
_______ _______ _______
Cash generated from operations 274 (7,436) (3,913)
Interest paid (248) (2) (263)
Dividend paid (1,044) - -
Taxation (87) (94) (133)
_______ _______ _______
Net cash outflow from operating activities (1,105) (7,532) (4,309)
_______ _______ _______
Cash flows from investing activities
Purchases of investments (82,654) (161,974) (224,310)
Sales of investments 85,521 67,879 130,153
_______ _______ _______
2,867 (94,095) (94,157)
_______ _______ _______
Cash flows from financing activities
Shares issued - 94,983 94,983
Cost of share issue - (1,642) (1,625)
Short term loan received - 10,000 10,000
_______ _______ _______
- 103,341 103,358
_______ _______ _______
Increase in cash 1,762 1,714 4,892
Change in cash and cash equivalents
Cash and cash equivalents at start of period 4,892 - -
_______ _______ _______
Cash and cash equivalents at end of period 6,654 1,714 4,892
_______ _______ _______
Notes to the Financial Statements
1. Accounting Policies
The consolidated accounts comprise the unaudited financial results of the
Company and its subsidiary JSST Securities Limited for the six months to 30th
April 2006. The accounts are presented in pounds sterling, as this is the
functional currency of the Group.
The consolidated accounts have been prepared in accordance with International
Financial Reporting Standards (IFRS) currently issued by the International
Accounting Standards Board (IASB), and interpretations issued by the
International Financial Reporting Interpretations Committee of the IASB (IFRIC)
effective for 2006 reporting, as adopted by the European Union.
These are the first accounts of the Group that have been prepared in accordance
with IFRS and have been prepared in accordance with the policies that the
directors anticipate will be complied with in the next annual statements of the
Group. Previous accounts were prepared in accordance with UK Generally Accepted
Accounting Principles (UK GAAP) and the Statement of Recommended Practice
(SORP) for investment trust companies issued by the Association of Investment
Trust Companies (AITC) in January 2003.
In preparing these accounts, the Group was required to determine its IFRS
accounting policies and apply them retrospectively to establish its opening
balance sheet under IFRS. The Group prepared its restatement on a transition
date of 1st November 2004. The Group has not relied on any exemptions in IFRS
1.
The accounting and valuation methods below that previously applied in UK GAAP
accounts have been amended to comply with IFRS as follows:
Under IAS 39 Financial Instruments: Recognition and Measurement, quoted
investments previously reported at mid-market value are now shown at bid
price and classified as investments held at fair value through profit or
loss. The effect of this change is recorded in the Income Statement.
Under IAS 10 Events After the Balance Sheet Date, dividends payable to
the Geared Growth shareholders that are declared or proposed after the
balance sheet date, are no longer recognised as a liability in the accounts
in the period to which they relate, but are carried forward and expensed in
the following periods accounts. The effect of this change is reflected in
an increase or decrease of equity shareholders funds.
Under IAS 32 Financial Instruments: Disclosure and Presentation, the Zero
Dividend Preference shares are now classed as a liability in the accounts
to reflect more appropriately the rights and obligations attributable to
the Zero Dividend Preference and Geared Growth shareholders. Accordingly
the redemption reserve, share capital, special reserve and share premium
accounts are reduced and long term creditors increased. These changes are
presentational and have no impact on the Companys net assets per share or
returns per share.
Under UK GAAP the profit and loss account of the Group was the revenue column of
the Statement of Total Return. However, under IFRS, the profit and loss account
is now the total column of the Income Statement. As a result all of the items
in the capital column of the Income Statement form part of the profit or loss of
the Group.
Under IFRS, there is no differentiation between capital and revenue
gains/losses. The previous headings of Capital reserve realised and Capital
reserve unrealised are now included under the heading Retained earnings.
As required by IFRS 1 (First Time Adoption of International Accounting
Standards) reconciliations showing the effect of the transition from UK GAAP to
IFRS are given in notes 8 and 9. Where presentational guidance set out in the
SORP is consistent with the requirement of IFRS, the financial statements have
been prepared on a basis compliant with the SORP.
The principal accounting policies all of which have been applied consistently
throughout the period are set out below.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries). Control
is achieved where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefits from its
activities.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by
the Group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Presentation of Income Statement
In order to better reflect the activities of an investment trust company and in
accordance with guidance issued by the AITC, supplementary information which
analyses the Income Statement between items of a revenue and capital nature has
been presented alongside the Income Statement. In accordance with the Companys
status as a UK investment company under section 266 of the Companies Act 1985,
net capital returns may not be distributed by way of dividend.
An analysis of retained earnings broken down into revenue (distributable) items
and capital (non-distributable) items is given in note 6. In arriving at this
breakdown, expenses have been presented as revenue items except any performance
fees payable which are allocated wholly to capital, reflecting the fact that,
although they are calculated on a total return basis, they are expected to be
attributable largely, if not wholly, to capital outperformance.
Revenue Recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services provided in
the normal course of business.
Revenue includes dividends from investments quoted ex-dividend on or before the
balance sheet date and is classified within operating activities in the cash
flow statement.
Income on fixed income securities is recognised on a time apportionment basis
according to the period for which these investments are held. Deposit and other
interest receivable, expenses and interest payable are accounted for on an
accruals basis. These are classified within operating activities in the cash
flow statement.
Investments
Investments are recognised and derecognised on a trade date where a purchase and
sale of an investment is under contract whose terms require delivery of the
investment within the timeframe established by the market concerned, and are
initially measured at cost, including transaction costs, being the
consideration.
All investments are classified as held at fair value through profit or loss.
All investments are measured at fair value with changes in their fair value
recognised in the income statement in the period in which they arise. The fair
value of listed investments is based on their quoted bid market price at the
balance sheet date without any deduction for estimated future selling costs.
The fair value of any unquoted investments is based on the market price on the
balance sheet date where an organised market exists; otherwise, unquoted
investments are valued by the Directors at the balance sheet date based on
dealing prices or stockbrokers valuations where available, net asset values or
other relevant information.
Foreign exchange gains and losses on fair value through profit and loss
investments are included within the changes in its fair value.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds
received, net of direct issue costs. Finance charges, including premiums
payable on settlement or redemption and direct issue costs, are accounted for on
an accrual basis to the profit and loss account using the effective interest
method and are added to the carrying amount of the instrument to the extent that
they are not settled in the period in which they arise.
Borrowing costs
Borrowing costs are recognised in profit or loss in the period in which they are
incurred. All borrowing costs are charged directly to revenue.
Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates
of exchange prevailing on the dates of the transactions. At each balance sheet
date, monetary assets and liabilities that are denominated in foreign currencies
are retranslated at the rates prevailing on the balance sheet date. Non-
monetary assets and liabilities carried at fair value that are denominated in
foreign currencies are translated at the rates prevailing at the date when the
fair value was determined. Gains and losses arising on retranslation are
included in net profit or loss for the period, except for exchange differences
arising on non-monetary assets and liabilities where the changes in fair value
are recognised directly in equity.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the Income Statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Groups liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the
temporary difference arises from goodwill or from the initial recognition (other
than in a business combination) of other assets and liabilities in a transaction
that affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the Income Statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Investment Trusts which have approval under section 842 of the Income and
Corporation Taxes Act 1988 are not liable for taxation on capital gains.
2 Earnings per Geared Growth share
The earnings per Geared Growth share figure is based on the net gain for the six
months of �28,469,000 (six months to 30th April 2005: net loss �876,000; period
ended 31st October 2005: �3,525,000) and on 94,905,683 Geared Growth shares,
being the number of Geared Growth shares in issue during the period (six months
to 30th April 2005: 93,922,859; period ended 31st October 2005: 94,418,310 being
the weighted average number of Geared Growth shares in issue during the
periods).
The earnings per Geared Growth share figure detailed above can be further
analysed between revenue and capital, as below.
Six months to Six months to Period ended
30th April 2006 30th April 2005 31st October 2005
(Restated) (Restated)
�000 �000 �000
Net revenue profit 308 38 1,176
Net capital profit 28,161 (914) 2,349
________ ________ ________
Net total profit 28,469 (876) 3,525
======== ======== ========
Number of Geared Growth
shares in issue during
the period 94,905,683
Weighted average number
of Geared Growth shares
in issue 93,922,859 94,418,310
pence pence pence
Revenue earnings per
Geared Growth share 0.32 0.04 1.25
Capital earnings per
Geared Growth share 29.67 (0.97) 2.49
________ ________ ________
Total earnings per
Geared Growth share 29.99 (0.93) 3.74
======== ======== ========
3 Gains on Investments
Six months to 30th Six months to Period ended
April 2006 30th April 2005 31st October 2005
(Restated) (Restated)
�000 �000 �000
Net gains realised on sale of
investments 14,000 7,241 2,755
Movement in unrealised gains
20,726 (6,115) 4,621
________ ________ ________
Gains on investments 34,726 1,126 7,376
======== ======== ========
4 Transaction Costs
The following transaction costs were incurred during the period:
Six months to 30th Six months to 30th Period ended 31st
April 2006 April 2005 October 2005
�000 �000 �000
Purchases 302 575 902
Sales 152 112 224
________ ________ ________
454 687 1,126
======== ======== ========
5. Comparative Information
The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
financial information for the six months to 30th April 2006 and 30th April 2005
has not been audited.
The information for the period ended 31st October 2005 has been extracted from
the latest published audited financial statements, as restated to comply with
IFRS (see note 8). The audited financial statements for the period ended 31st
October 2005 have been filed with the Registrar of Companies. The report of the
auditors on those accounts contained no qualification or statement under section
237(2) or (3) of the Companies Act 1985.
6. Retained earnings
The table below shows the movement in the retained earnings analysed between
revenue and capital items.
Revenue Capital Total
�000 �000 �000
At 31st October 2005 (as restated)
1,176 2,349 3,525
Movement during the period:
Net income for the period (736) 28,161 27,425
________ ________ ________
At 30th April 2006 440 30,510 30,950
======== ======== ========
7. Net asset value per Geared Growth share
The net asset value per Geared Growth share is based on the net assets
attributable to the equity shareholders of �68,624,000 (30th April 2005:
�36,781,000 as restated; 31st October 2005: �41,182,000 as restated) and on
94,905,683 (30th April 2005: 94,905,683; 31st October 2005: 94,905,683) Geared
Growth shares, being the number of Geared Growth shares in issue at the period
end.
8 (a) Restatement of balances as at and for the period ended 31st October 2005
At 1st November 2005 the Company adopted International Financial Reporting
Standards.
The reconciliation of equity at 31st October 2005 (the date of the last UK GAAP
financial statements) and the reconciliation of profit for 2005 are required by
IFRS 1 (First Time Adoption of International Financial Reporting Standards) in
the year of transition.
Note Previously reported Effect of transition Restated
UK GAAP to IFRS IFRS
31st October 2005 31st October 2005
(Audited)
�000 �000 �000
Investments 1 102,155 (164) 101,991
Current assets 10,624 10,624
Creditors: amounts falling
due within one year 2 (12,658) 1,044 (11,614)
________ ________
Total assets less current
liabilities 100,121 101,001
Creditors: amounts falling
due after more than one year
3 - (59,819) (59,819)
________ ________
100,121 41,182
======== ========
Capital and reserves
Called up share capital 3 1,898 (949) 949
Share premium 3 1,103 (627) 476
Special reserve 3 90,340 (54,108) 36,232
Redemption reserve 3 4,135 (4,135) -
Capital reserve realised 4 (1,645) 1,645 -
Capital reserve unrealised 4 4,158 (4,158) -
Revenue reserve /Retained 4
earnings 132 3,393 3,525
________ ________
100,121 41,182
======== ========
Notes to the reconciliation
1. Investments (excluding derivatives) are designated as held at fair value
under IFRS and are carried at bid prices which total their fair value of
�101,991,000. Previously, under UK GAAP they were carried at mid prices.
The difference being a revaluation downwards of �164,000, also decreases
retained earnings.
2. No provision has been made for the 2005 first interim dividend on the
Geared Growth shares for the period ended 31st October 2005 of
�1,044,000. Under IFRS, dividends payable by the Company are now only
recorded as a liability following a dividend declaration by the Board and
therefore the 2005 first interim dividend of 1.1p per share, declared on
8th December 2005, is not recognised as a liability of the Company as at
31st October 2005.
This change has the effect of decreasing creditors falling due within one
year and increasing retained revenue by �1,044,000.
3. Under IFRS the Zero Dividend Preference shares are now classed as a
liability and accordingly the redemption reserve, share capital, special
reserve and share premium accounts are reduced as illustrated to transfer
the ZDP entitlement accruing at 31st October 2005 to creditors and being
recognised as a long term liability.
4. Under IFRS, there is no differentiation between capital and revenue
gains/losses. The previous headings of Capital reserve - realised and
Capital reserve - unrealised are now included under the heading Retained
earnings.
(b)Reconciliation of the Statement of Total Return to the Income Statement
for the period ended 31st October 2005
Under IFRS the Income Statement is the equivalent of the Statement of Total
Return reported previously.
31st October 2005 EPS impact
�000 in pence
Total transfer to reserves per the Statement of Total
Return 2,645 3.91
Investments held at fair value changed from mid to bid
basis at 31st October 2005 (164) (0.17)
Dividend proposed for the period ended
31st October 2005 1,044 -
________ ________
Net profit per the Income Statement 3,525 3.74
======== ========
Investments at 31st October 2005 are required to be valued at fair value under
IFRS. This value differs from the previous valuation by �164,000.
9 (a) Restatement of balances as at and for the period to 30th April 2005
In addition to the reconciliations required by IFRS 1 (First Time Adoption of
International Financial Reporting Standards) in the year of transition, the
reconciliation of equity at 30th April 2005 and the reconciliation of profit for
the six months ended 30th April 2005 have been included below to enable a
comparison of the 2006 interim figures with the corresponding period of the
previous financial period.
Note Previously reported Effect of Restated
UK GAAP transition to IFRS IFRS
30th April 2005 30th April 2005
(unaudited)
�000 �000 �000
Investments 1 93,983 (358) 93,625
Current assets 11,541 11,541
Creditors: amounts falling
due within one year (10,661) (10,661)
________ ________
Total assets less current
liabilities 94,863 94,505
Creditors: amounts falling
due after more than one year
3 - (57,724) (57,724)
________ ________
94,863 36,781
======== ========
Capital and reserves
Called up share capital 3 1,898 (949) 949
Share premium 3 1,103 (627) 476
Special reserve 3 90,340 (54,108) 36,232
Redemption reserve 3 2,040 (2,040) -
Capital reserve realised 2 5,201 (5,201) -
Capital reserve unrealised 2 (5,757) 5,757 -
Revenue reserve /Retained 2
earnings 38 (914) (876)
________ ________
94,863 36,781
======== ========
Notes to the reconciliation
1. Investments are designated as held at fair value under IFRS and are
carried at bid prices which equate to their fair value of �93,625,000.
Previously, under UK GAAP, they were carried at mid prices. The resultant
difference is �358,000.
2. Under IFRS, there is no differentiation between capital and revenue
gains/losses. The previous headings of Capital reserve - realised and
Capital reserve - unrealised are now included under the heading Retained
earnings.
Under IFRS the Zero Dividend Preference shares are now classed as a
liability and accordingly the redemption reserve, share capital, special
reserve and share premium accounts are reduced as illustrated to transfer
the ZDP entitlement accruing at 30th April 2005 to creditors and being
recognised as a long term liability.
(b) Reconciliation of the Statement of Total Return to the Income Statement for
the period to 30th April 2005
Under IFRS the Income Statement is the equivalent of the Statement of Total
Return reported previously.
30th April 2005 EPS impact
�000 in pence
Total transfer to reserves per the Statement of Total
Return (518) (0.55)
Investments held at fair value changed from mid to bid
basis at 30th April 2005 (358) (0.38)
________ ________
Net profit per the Income Statement (876) (0.93)
======== ========
Investments at 30th April 2005 are required to be valued at fair value under
IFRS. This value differs from the previous valuation by �358,000.
The interim report will be sent to all shareholders and copies may be obtained
from the registered office of the Company at 1 Grosvenor Place, London SW1X 7JJ
BY ORDER OF THE BOARD
JUPITER ASSET MANAGEMENT LIMITED
Secretaries
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