TIDMJSS
Jupiter Second Split Trust PLC
Unaudited Results for the half year to 30th April 2009
This announcement of unaudited results for the six months to 30 April
2009 was approved by the Board of Directors on 26 June 2009
CHAIRMAN'S STATEMENT
During the six months to 30 April 2009 your Company's total assets
increased by 7.7 per cent., which compares favorably with your
Company's composite benchmark, which increased by 0.5 per cent. The
composite benchmark index is weighted 75 per cent. to the FTSE
All-Share Index and 25 per cent. to the FTSE Actuaries World Index.
The geared split capital structure of the Company meant that the Net
Asset Value of the Company's Geared Growth shares increased by 14.8
per cent. during the six months under review.
The Packaged Units are not geared by the Company's split capital
structure since they each comprise one Geared Growth share and one
Zero Dividend Preference share. The Net Asset Value of the Packaged
Units therefore increased by 7.7 per cent. over the period in line
with the Company's total assets.
The Net Asset Value of the Zero Dividend Preference shares increased
by 3.7 per cent. over the period under review to 81.15p.
Revenues after tax for the period amounted to GBP3.8 million (or 4.00p
per Geared Growth share). This compares with a revenue loss of GBP2.8
million for the six months to 30 April 2008. Successful results of
the trading subsidiary contributed significantly to this improvement.
DIVIDEND
In line with the Board's policy in previous years, an interim
dividend will not be paid in respect of the six months to 30 April
2009. As stated in its prospectus, the Company's investment
objective is to provide Geared Growth shareholders with capital
growth with income as a secondary objective.
The Board anticipate that there will, nevertheless, be a final
interim dividend declared towards the end of the life of the Company
comprising substantially all of the Company's distributable current
year revenues and revenue reserves.
PORTFOLIO REVIEW
I commend to you the Manager's Review which sets out information on
recent market conditions and the Company's investments during the
period under review.
FUTURE OF THE COMPANY
The Company is approaching its planned wind up date of 30 October
2009. The board is actively considering various options to allow
shareholders to continue their investment in a tax efficient manner
under the management of Philip Gibbs. An announcement will be made
later in the year and a circular will be sent to all shareholders
containing full details of our proposals.
OUTLOOK
The recent rally in equity markets may continue as monetary and
fiscal stimuli filter into the economy. However, there are still
significant points of concern. Governments will need to rein in debt
through higher taxes and lower spending and interest rates may
ultimately have to rise. That said, the current period of relief for
consumers and corporates could continue to support markets in the
near term and possibly to the end of the planned life of your Company
in October 2009.
Your fund manager has reacted to the recent early signs of recovery
in the economy by increasing your Company's exposure to equities. On
12 June 2009 equities represented 63 per cent. of net assets; some 16
per cent. of net assets were invested in corporate bonds and, as a
mark of prudence, some 21 per cent. was held in cash.
Gordon Campbell
Chairman
29 June 2009
MANAGER'S REVIEW
The six months under review was one of the most extraordinary periods
in the history of stockmarkets. From November until the beginning of
March there was one of the sharpest falls imaginable in equities
followed by the quickest rally since the 1930's.
Throughout the period we maintained a defensive stance, with
significant cash and corporate bond holdings. However, towards the
end of the period we began to increase equity market exposure as
evidence mounted of increased stability in the world economy. These
increases principally took place in the financial sector, which has
been the hardest hit by the downturn. Many shares in the sector are
priced at around net asset value or even below, and some have emerged
in a position of relative strength from the crisis.
We continue to take a positive view on corporate bonds, especially in
the tobacco sector, where some extremely high yields are offered.
Since the end of April as evidence has presented of improved
stability and growth prospects in the world economy cash has been
reduced significantly. In the main this has been deployed in the
financial sector, especially in the USA and the UK. It is our belief
that the US and UK economies are particularly sensitive to interest
rate and property price movements and that financial shares would
respond well to an improved environment. They are mainly priced for
an extremely difficult outlook.
Philip Gibbs
Fund Manager
Jupiter Asset Management Limited
29 June 2009
HALF YEAR MANAGEMENT REPORT
MATERIAL EVENTS
On 31 January 2009 an interim dividend of 1.0p per Geared Growth
share was paid to shareholders on the register as at the close of
business on 5 January 2009.
RELATED PARTY TRANSACTIONS
Mr. Gibbs is an employee of Jupiter Investment Management Group
Limited whose subsidiaries Jupiter Asset Management Limited and
Jupiter Administration Services Limited receive investment management
and administration fees as set out below.
Jupiter Asset Management Limited is contracted to provide investment
management services to the Company (subject to termination by not
less than 12 months notice by either party) for a quarterly fee of
0.1875 per cent. of the total assets less current liabilities of the
Group excluding the value of any Jupiter managed investments payable
in arrears on 31st January, 30th April, 31st July and 31st October in
each year. The total fees payable under this agreement are shown in
the Consolidated Income Statement.
Jupiter Asset Management Limited is also entitled to an investment
performance fee if Total Assets less current liabilities (after
adding back any dividends paid or performance fee accrued) at the end
of any given accounting period have increased over the greatest of
three 'high water marks', being (i) the Equity Proceeds (ii) Total
Assets less current liabilities at the end of the last financial
period in respect of which a performance fee was last paid (after
deduction of the performance fee paid to the Investment Manager in
respect of that period) and (iii) 1.10 multiplied by Total Assets
less current liabilities at the end of the previous accounting period
(after deduction of any performance fee paid to the Investment
Manager in respect of that period). In such circumstances, the
performance fee will amount to 15 per cent. of any such excess. The
calculation of the total amount of any performance fee will be
adjusted for the repurchase or redemption of shares in any accounting
period. The combined amount of any management and performance fees
payable in respect of any twelve month period will not exceed 5 per
cent. of the Total Assets less current liabilities of the Company.
Jupiter Administration Services Limited is contracted to provide
secretarial, accounting and administrative services to the Company
for an annual fee of GBP86,556 adjusted each year in line with the
Retail Price Index payable quarterly.
Mr Gibbs's directors fees for the provision of his services as a
director of the Group are paid to Jupiter Asset Management Limited.
The Company has invested from time to time in funds managed by
Jupiter Investment Management Group Limited or its subsidiaries. The
only such holding as at 30 April 2009 was East European Food Fund
representing 0.5 per cent. of total investments.
RISKS AND UNCERTAINTIES
The risks to the Company are foreign currency movements, market price
movements, interest rates, use of derivatives, liquidity risk, credit
risk, the discount to Net Asset Value and loss of investment trust
status. A detailed explanation of the Risks and Uncertainties facing
the Company can be found in note 17 on pages 40 to 44 of the
Company's published report and accounts for the year to 31 October
2008.
DIRECTORS' RESPONSIBILITY STATEMENT
We the directors of Jupiter Second Split Trust PLC confirm to the
best of our knowledge:
a) The condensed set of financial statements contained within the
half-yearly financial report has been prepared in accordance with the
Accounting Standards Board's statement 'Half-Yearly Financial
Reports';
b) The Chairman's Statement, Manager's Review and the Half Year
Management Report include a fair review of the information required
by the Disclosure and Transparency Rules 4.2.7R and 4.2.8R;
By order of the Board
Gordon Campbell
Chairman
29 June 2009
CONSOLIDATED INCOME STATEMENT
for the six months to 30 April 2009
(Unaudited)
Six months to Six months to
30 April 2009 30 April 2008
Revenue Capital Total Revenue Capital Total
Return Return Return Return
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Loss on
investments
at fair
value through
profit or
loss
(note 2) - (1,523) (1,523) - (7,717 ) (7,717)
Foreign
exchange
gains 7,629 7,629 - (330 ) (330)
- 6,106 6,106 - (8,047 ) (8,047)
Income from
investments 1,207 - 1,207 689 - 689
Bank interest 25 - 25 219 - 219
Dealing
profit/(loss)
of subsidiary 3,147 - 3,147 (3,028 ) - (3,028)
Total income 4,379 6,106 10,485 (2,120 ) (8,047 ) (10,167)
Investment
management
fee (426) - (426) (447 ) - (447)
Other
expenses (154) - (154) (158 ) - (158)
Total
expenses (580) - (580) (605 ) - (605)
Net return
before
finance
costs &
taxation 3,799 6,106 9,905 (2,725 ) (8,047 ) (10,772)
Interest
payable - - - (88 ) - (88)
Zero Dividend
Preference
shares - (2,709) (2,709) - (2,533 ) (2,533)
Net return
before
taxation 3,799 3,397 7,196 (2,813 ) (10,580 ) (13,393)
Taxation - - - (2 ) - (2)
Net return
after
taxation 3,799 3,397 7,196 (2,815 ) (10,580 ) (13,395)
Return per
Geared Growth
share (p)
(note 3) 4.00 3.58 7.58 (2.96 ) (11.15 ) (14.11)
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 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 30 April 2009
30 April 2009 31 October 2008
(unaudited) (audited)
GBP'000 GBP'000
Non-Current assets
Investments held at fair value
through profit or loss 53,877 100,356
Current assets
Investments held at fair value
through profit or loss 1,332 -
Receivables 6,953 5,089
Cash and cash equivalents 83,321 16,778
91,606 21,867
Total assets 145,483 122,223
Current liabilities (19,920) (5,616)
Zero Dividend Preference shares (77,012) (74,303)
Total assets less current
liabilities 48,551 42,304
Capital and reserves
Called up share capital 949 949
Share premium 493 493
Special reserve 36,232 36,232
Retained earnings (note 6) 10,877 4,630
Total equity 48,551 42,304
Net Asset Value per Geared Growth
share (pence) (note 7) 51.16 44.58
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
for the six months to 30 April 2009
(Unaudited)
Share Share Special Retained Total
Capital Premium Reserve Earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the six
months to 30
April 2009
31 October 2008 949 493 36,232 4,630 42,304
Net profit for
the period - - - 7,196 7,196
Dividends paid
and declared:
Interim
dividend for
year ended 31
October
2008 - - - (949) (949)
Balance at 30
April 2009 949 493 36,232 10,877 48,551
For the six
months to 30
April 2008
31 October 2007 949 493 36,232 32,061 69,735
Net loss for
the period - - - (13,395) (13,395)
Dividends paid
and declared:
Interim
dividend for
year ended 31
October
2007 - - - (1,613) (1,613) )
Balance at 30
April 2008 949 493 36,232 17,053 54,727
CONSOLIDATED CASH FLOW STATEMENT
for the six months to 30 April 2009
(Unaudited)
Six months to Six months to
30 April 2009 30 April 2008
GBP'000 GBP'000
Cash flows from operating
activities
Purchases of investments (159,830) (193,174)
Sales of investments 225,134 199,076
Realised gains/(losses) on foreign
currency 7,629 (330)
Investment income received 151 843
Deposit interest received 27 237
Investment management fee paid (417) (474)
Sales less purchases of dealing
subsidiary (498) (9,227)
Other cash expenses (2,730) (270)
Performance fee paid - (230)
Dividend paid (949) (1,613)
Net cash inflow/ (outflow) from
operating activities before
finance costs and taxation 68,517 (5,162)
Interest paid - (88)
Taxation 37 75
Increase/(Decrease) in cash 68,554 (5,175)
Change in cash and cash equivalents
Cash and cash equivalents at start
of period 14,767 13,433
Cash and cash equivalents at end of
period 83,321 8,258
Note:
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 30 April 2009. 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) adopted by the
International Accounting Standards Board (IASB), and interpretations
issued by the International Financial Reporting Interpretations
Committee of the IASB (IFRIC).
A summary of the principal accounting policies, all of which have
been applied consistently throughout the period, is set out below:
Revenue recognition
Revenue is measured at the fair value of the consideration received
or receivable and represents mounts 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.
Deposit and other interest receivable, expenses and interest payable
are accounted for on an accruals basis.
Presentation of income statement
In order to better reflect the activities of an investment trust
company and in accordance with guidance issued by the AIC,
supplementary information which analyses the income statement between
items of a revenue and capital nature has been presented alongside
the income statement. In accordance with the Company's 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 items,
which may be distributed as dividends and capital items is given in
note 6. The Company's Articles prevent the distribution of capital
profits. In arriving at this breakdown, expenses have been presented
as revenue items except any performance fees payable 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 performance.
Investments
All investments are classified as held at fair value through profit
or loss. Changes in the fair value of investments held at fair value
through profit or loss and gains and losses on disposal are
recognised in the consolidated income statement as 'Gains on
investments at fair value through profit or loss'. 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. All purchases and sales are accounted for on a trade date
basis.
2 Gains on Investments
Six months to Six months to
30 April 2009 30 April 2008
GBP'000 GBP'000
Net gains realised on sale of
investments 2,242 3,039
Movement in unrealised gains (3,765) (10,756)
Loss on investments (1,523) (7,717)
3 Return per Geared Growth share
The return per Geared Growth share figure is based on the net profit
for the six months of GBP7,196,000 (six months to 30 April 2008: loss
GBP13,395,000) and on 94,905,683 (six months to 30 April 2008:
94,905,683) Geared Growth shares, being the number of Geared Growth
shares in issue throughout the period.
The return per Geared Growth share figure detailed above can be
further analysed between revenue and capital, as below.
Six months to Six months to
30 April 2009 30 April 2008
GBP'000 GBP'000
Net revenue profit/(loss) 3,799 (2,815)
Net capital profit/(loss) 3,397 (10,580)
Net total profit/(loss) 7,196 (13,395)
Number of Geared Growth shares in
issue throughout the period 94,905,683 94,905,683
pence Pence
Revenue return per Geared Growth
share 4.00 (2.96)
Capital return per Geared Growth
share 3.58 (11.15)
Total return per Geared Growth share 7.58 (14.11)
4 Transaction Costs
The following transaction costs were incurred during the period:
Six months to Six months to
30 April 2009 30 April 2008
GBP'000 GBP'000
Purchases 453 483
Sales 137 239
590 722
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
30 April 2009 and 30 April 2008 has not been audited.
The information for the year ended 31 October 2008 has been extracted
from the latest published audited financial statements. The audited
financial statements for the year ended 31 October 2008 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 of the
Group analysed between revenue and capital items.
Revenue Capital Total
GBP'000 GBP'000 GBP'000
At 31 October 2008 (1,205) 5,835 4,630
Movement during the period:
Net income for the period 3,799 3,397 7,196
Dividend paid (949) - (949)
At 30 April 2009 1,645 9,232 10,877
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 GBP48,551,000 (31
October 2008: GBP42,304,000) and on 94,905,683 (31 October 2008:
94,905,683) Geared Growth shares, being the number of Geared Growth
shares in issue at the period end.
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
=--END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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