TIDMLWDB
RNS Number : 6647N
Law Debenture Corp PLC
30 July 2014
The Law Debenture Corporation p.l.c. and its subsidiaries
HALF YEARLY REPORT FOR THE SIX MONTHS TO 30 JUNE 2014
(unaudited)
The Directors recommend an interim dividend of 4.7p on the
ordinary shares for the six months to 30 June 2014. The report
including the unaudited results for the period was as follows:
Group summary
From its origins in 1889, Law Debenture has diversified to
become a group with a unique range of activities in the financial
and professional services sectors. The group divides into two
distinct complementary areas of business.
Investment trust
We are a global investment trust, listed on the London Stock
Exchange.
Our portfolio of investments is managed by Henderson Global
Investors Limited under a contract terminable by either side on six
months' notice.
Our objective is to achieve long term capital growth in real
terms and steadily increasing income. The aim is to achieve a
higher rate of total return than the FTSE Actuaries All-Share Index
through investing in a portfolio diversified both geographically
and by industry.
Independent fiduciary services
We are a leading provider of independent fiduciary services. Our
activities are corporate trusts, agency solutions, pension trusts,
corporate services (including agent for service of process) whistle
blowing services and governance services. We have offices in
London, Sunderland, New York, Delaware, Hong Kong, the Channel
Islands and the Cayman Islands.
Companies, agencies, organisations and individuals throughout
the world rely upon Law Debenture to carry out its duties with the
independence and professionalism upon which its reputation is
built.
Registered office
Fifth Floor
100 Wood Street
London EC2V 7EX
Telephone: 020 7606 5451
Facsimile: 020 7606 0643
Email: enquiries@lawdeb.com
(Registered in England No 30397)
Financial summary
30 June 30 June 31 December
2014 2013 2013
Pence Pence Pence
Share price 518.50 481.50 529.00
NAV per share after proposed
dividend 484.97 423.10 472.87
NAV per share after proposed
dividend
with debt at fair value 478.12 418.61 467.87
Net revenue return per share:
- Investment trust 6.08 5.60 9.31
- Independent fiduciary services 3.23 3.24 6.96
Group net revenue return
per share 9.31 8.84 16.27
Capital return per share 7.83 44.71 97.18
Dividends per share 4.70 4.50 15.00
%
Ongoing charges 0.47
Gearing 5
Ongoing charges are based on the costs of the investment trust
and include the Henderson management fee of 0.30% of NAV for the
investment trust. There is no performance element related to the
fee.
Performance to 30 June 2014
6 months 12 months
% %
Share price total return
1 0.00 10.9
NAV total return 1 3.40 18.0
FTSE All-Share Index total
return 1.60 13.1
1. Source AIC, NAV used to calculate total return has been
adjusted to reflect the fair value of the debenture. The adjustment
reduced the NAV at 30 June 2014 by 6.85p (31 December 2013: 5.00p:
30 June 2013:4.49p).
Basis of preparation
The results for the period have been prepared in accordance with
International Financial Reporting Standards (IAS 34 - Interim
financial reporting).
The financial resources available are expected to meet the needs
of the group for the
foreseeable future. The financial statements have therefore been
prepared on a going concern basis.
There have been no changes to the group's accounting policies
during the period.
Half yearly management report
Performance
Our net asset value total return for the six months to 30 June
2014 was 3.4%, compared to a total return of 1.6% for the FTSE
Actuaries All-Share Index. Net revenue per share was 9.31p, an
increase of 5.3% over the corresponding period last year, as a
result of a 8.6% increase in the investment trust and a 0.3%
decrease in independent fiduciary services.
Dividend
The board has declared an interim dividend of 4.7p (2013: 4.5p).
The dividend will be paid on 12 September 2014 to holders on the
record date of 15 August 2014. The current expectation of the
directors is that the final dividend will be maintained.
Investment trust
The equity portfolio rose in value by a small amount during the
period. This comes after a few years of strong returns from
equities. Corporate profits have risen but the appreciation of
share prices has outstripped these rises as the valuations on
equities have increased. We believe a period of consolidation is
occurring in which earnings will grow and therefore justify the
valuations. The outlook for earnings growth remains intact with the
global economy growing and companies that are producing competitive
products benefitting. Company costs remain well controlled with
modest wage growth and a low rate of raw material price increase.
The good operating margins that are being achieved are leading to
substantial cash generation by some companies. This has resulted in
corporate debt particularly in the UK falling to low levels. The
resulting strong balance sheets and high dividend cover mean we are
retaining the large exposure to UK quoted companies. After a period
of poor performance in some emerging markets we are finding
opportunities. For instance, a holding has been purchased in
Embraer, the Brazilian based aerospace company. We do not expect
there will be significant changes to the portfolio in coming months
but we will remain alive to actions that may need to be taken. We
will retain a relatively long list of stocks to mitigate risk.
Alternative Investment Fund Managers Directive
The Corporation has made its application to the Financial
Conduct Authority to become its own Alternative Investment Fund
Manager (AIFM), as it is permitted to do under the legislation. The
Corporation has appointed a depositary, as required, which together
with other costs of complying with the Directive will increase our
ongoing charges.
Independent fiduciary services
Revenue, net of cost of sales, which represents legal costs
recharged to clients, increased by 1.3% over the corresponding
period last year. Administration costs increased by 1.6% leaving
profit before interest marginally ahead. After taking account of
the cost of the bank facility put in place in the second half of
last year to provide capital in the US, profit before tax fell by
3.4%. We will continue to look for opportunities to improve
revenues and control costs.
Group income statement
for the six months ended 30 June 2014 (unaudited)
30 June 2014 30 June 2013
--------------------------------- ------------------------------------
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------- --------- --------- ----------- --------- ------------
UK dividends 7,497 - 7,497 6,531 - 6,531
UK special dividends 631 - 631 778 - 778
Overseas dividends 1,508 - 1,508 1,401 - 1,401
Overseas special dividends 8 - 8 32 - 32
Interest from securities 103 - 103 295 - 295
----------------------------- ----------- --------- --------- ----------- --------- ------------
9,747 - 9,747 9,037 - 9,037
Interest income 34 - 34 30 - 30
Independent fiduciary
services fees 15,345 - 15,345 14,751 - 14,751
Other income 49 - 49 21 - 21
Total income 25,175 - 25,175 23,839 - 23,839
Net gain on investments
held at fair value through
profit or loss - 9,388 9,388 - 52,737 52,737
----------------------------- ----------- --------- --------- ----------- --------- ------------
Gross income and capital
gains 25,175 9,388 34,563 23,839 52,737 76,576
Cost of sales (2,040) - (2,040) (1,590) - (1,590)
Administrative expenses (10,226) (169) (10,395) (9,977) (128) (10,105)
----------------------------- ----------- --------- --------- ----------- --------- ------------
Operating profit 12,909 9,219 22,128 12,272 52,609 64,881
Finance costs
Interest payable (1,434) - (1,434) (1,225) - (1,225)
----------------------------- ----------- --------- --------- ----------- --------- ------------
Profit before taxation 11,475 9,219 20,694 11,047 52,609 63,656
Taxation (507) - (507) (643) - (643)
Profit for period 10,968 9,219 20,187 10,404 52,609 63,013
----------------------------- ----------- --------- --------- ----------- --------- ------------
Return per ordinary
share (pence) 9.31 7.83 17.14 8.84 44.71 53.55
----------------------------- ----------- --------- --------- ----------- --------- ------------
Diluted return per ordinary
share (pence) 9.30 7.82 17.12 8.83 44.67 53.50
----------------------------- ----------- --------- --------- ----------- --------- ------------
Statement of comprehensive income
for the six months ended 30 June 2014 (unaudited)
30 June 2014 30 June 2013
---------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- -------- -------- -------- --------
Profit for the period 10,968 9,219 20,187 10,404 52,609 63,013
Foreign exchange on
translation of foreign
operations - (106) (106) - (254) (254)
-------- -------- -------- -------- -------- --------
Total comprehensive
income for the period 10,968 9,113 20,081 10,404 52,355 62,759
-------- -------- -------- -------- -------- --------
Group statement of financial position
30 June 30 June 31 December
2014 2013 2013
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Assets
Non current assets
Goodwill 2,143 2,238 2,167
Property, plant and equipment 159 230 207
Other intangible assets 122 300 223
Investments held at fair value
through profit or loss 601,266 533,083 595,173
Deferred tax assets 704 1,020 775
---------------------------------- ------------- ------------- ------------
Total non current assets 604,394 536,871 598,545
---------------------------------- ------------- ------------- ------------
Current assets
Trade and other receivables 8,850 3,297 6,787
Other accrued income and prepaid
expenses 5,329 5,638 4,963
Cash and cash equivalents 49,136 21,332 49,688
---------------------------------- ------------- ------------- ------------
Total current assets 63,315 30,267 61,438
---------------------------------- ------------- ------------- ------------
Total assets 667,709 567,138 659,983
---------------------------------- ------------- ------------- ------------
Current liabilities
Trade and other payables 14,385 11,464 12,071
Short term borrowing 25,248 - 26,793
Corporation tax payable 656 679 951
Other taxation including social
security 636 617 655
Deferred income 4,270 4,175 4,059
---------------------------------- ------------- ------------- ------------
Total current liabilities 45,195 16,935 44,529
---------------------------------- ------------- ------------- ------------
Non current liabilities and
deferred income
Long term borrowings 39,458 39,431 39,445
Retirement benefit obligations 729 1,867 1,089
Deferred income 5,546 5,769 5,848
Total non current liabilities 45,733 47,067 46,382
---------------------------------- ------------- ------------- ------------
Total net assets 576,781 503,136 569,072
---------------------------------- ------------- ------------- ------------
Equity
Called up share capital 5,908 5,905 5,908
Share premium 8,296 8,125 8,283
Capital redemption 8 8 8
Own shares (1,712) (1,797) (1,695)
Capital reserves 528,921 457,943 519,702
Retained earnings 35,278 32,897 36,678
Translation reserve 82 55 188
---------------------------------- ------------- ------------- ------------
Total equity 576,781 503,136 569,072
---------------------------------- ------------- ------------- ------------
Group statement of cash flows
For the six months ended 30 June 2014
31 December
30 June 30 June 2013
2014 (unaudited) 2013 (unaudited) (audited)
GBP000 GBP000 GBP000
------------------------------------- ------------------ ------------------ ---------------
Operating activities
Operating profit before interest
payable and taxation 22,128 64,881 137,933
(Gains) on investments (9,219) (52,069) (114,368)
Foreign exchange 24 (62) 15
Depreciation of property, plant
and equipment 61 72 154
Amortisation of intangible assets 101 101 199
(Increase)/decrease in receivables (2,429) 1,289 1,526
Increase in payables 2,217 681 1,303
Transfer (from)/to capital reserves (14) 223 150
Normal pension contributions
in excess of cost (360) (360) (706)
------------------------------------- ------------------ ------------------ ---------------
Cash generated from operating
activities 12,509 14,216 23,154
------------------------------------- ------------------ ------------------ ---------------
Taxation (731) (863) (1,482)
Interest paid (1,434) (1,225) (2,736)
Operating cash flow 10,344 12,128 18,936
------------------------------------- ------------------ ------------------ ---------------
Investing activities
Acquisition of property, plant
and equipment (13) (43) (109)
Expenditure on intangible assets - (37) (57)
Purchase of investments (28,665) (49,489) (101,534)
Sale of investments 31,864 48,305 100,222
Cash flow from investing activities 3,186 (1,264) (1,478)
------------------------------------- ------------------ ------------------ ---------------
Financing activities
Dividends paid (12,368) (11,471) (16,768)
Proceeds of increase in share
capital 13 3 164
Purchase of own shares (17) (19) 83
------------------------------------- ------------------ ------------------ ---------------
Net cash flow from financing
activities (12,372) (11,487) (16,521)
------------------------------------- ------------------ ------------------ ---------------
Net increase/(decrease) in cash
and cash equivalents 1,158 (623) 937
------------------------------------- ------------------ ------------------ ---------------
Cash and cash equivalents at
beginning of period 22,895 22,201 22,201
Foreign exchange (losses) on
cash and cash equivalents (165) (246) (243)
------------------------------------- ------------------ ------------------ ---------------
Cash and cash equivalents at
end of period 23,888 21,332 22,895
------------------------------------- ------------------ ------------------ ---------------
Cash and cash equivalents comprise
Cash and cash equivalents 49,136 21,332 49,688
------------------------------------- ------------------ ------------------ ---------------
Short term borrowings (25,248) - (26,793)
------------------------------------- ------------------ ------------------ ---------------
23,888 21,332 22,895
------------------------------------- ------------------ ------------------ ---------------
Group statement of changes in equity
Share Share Own Capital Translation Capital Retained
capital premium shares redemption reserve reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- --------- --------- -------- ------------ ------------ ---------- ---------- ---------
Equity at 1 January
2014 5,908 8,283 (1,695) 8 188 519,702 36,678 569,072
--------------------- --------- --------- -------- ------------ ------------ ---------- ---------- ---------
Net profit - - - - - 9,219 10,968 20,187
Other comprehensive
income:
Foreign exchange - - - - (106) - - (106)
--------------------- --------- --------- -------- ------------ ------------ ---------- ---------- ---------
Total comprehensive
income for the
period - - - - (106) 9,219 10,968 20,081
Issue of shares - 13 - - - - - 13
Movement in own
shares - - (17) - - - - (17)
Dividend relating
to 2013 - - - - - - (12,368) (12,368)
Total equity
at 30 June 2014 5,908 8,296 (1,712) 8 82 528,921 35,278 576,781
--------------------- --------- --------- -------- ------------ ------------ ---------- ---------- ---------
Group segmental analysis
Independent fiduciary Total
Investment trust services
----------------------------------------- ------------------------------------------ --------------------------------------
30 31 30
June 30 June Dec 30 June June 31 Dec 30 June 30 June 31 Dec
2014 2013 2013 2014 2013 2013 2014 2013 2013
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------- ------------ ------- ------------- ------- ------------- ------------------------- ----------- -----------
Revenue
Income 9,781 9,037 15,785 15,345 14,751 31,819 24,126 23,788 47,604
Other income - - 71 49 21 112 49 21 183
Cost of sales - - - (2,040) (1,590) (4,744) (2,040) (1,590) (4,744)
Administration
costs (1,329) (1,218) (2,412) (8,897) (8,759) (17,127) (10,226) (9,977) (19,539)
---------- ------------ --------------- -------------- ------------- ----------- ------------ ----------- -----------
8,452 7,819 13,444 4,457 4,423 10,060 12,909 12,242 23,504
Interest (net) (1,286) (1,232) (2,481) (148) 37 (194) (1,434) (1,195) (2,675)
---------- ------------ --------------- -------------- ------------- ----------- ------------ ----------- -----------
Return,
including
profit on
ordinary
activities
before
taxation 7,166 6,587 10,963 4,309 4,460 9,866 11,475 11,047 20,829
Taxation - - - (507) (643) (1,679) (507) (643) (1,679)
---------- ------------ --------------- -------------- ------------- ----------- ------------ ----------- -----------
Return,
including
profit
attributable
to
shareholders 7,166 6,587 10,963 3,802 3,817 8,187 10,968 10,404 19,150
---------- ------------ --------------- -------------- ------------- ----------- ------------ ----------- -----------
Revenue
return
per ordinary
share
(pence) 6.08 5.60 9.31 3.23 3.24 6.96 9.31 8.84 16.27
---------- ------------ --------------- -------------- ------------- ----------- ------------ ----------- -----------
Assets 610,444 545,371 605,761 57,265 21,767 54,222 667,709 567,138 659,983
Liabilities (52,961) (58,480) (53,320) (37,967) (5,522) (37,591) (90,928) (64,002) (90,911)
---------- ------------ --------------- -------------- ------------- ----------- ------------ ----------- -----------
Total net
assets 557,483 486,891 552,441 19,298 16,245 16,631 576,781 503,136 569,072
---------- ------------ --------------- -------------- ------------- ----------- ------------ ----------- -----------
The capital element of the income statement is wholly
attributable to the investment trust.
Analysis of the investment portfolio
By geographical location
Valuation Valuation
31 December Costs Sales Appreciation/ 30 June
2013 Purchases of proceeds (depreciation) 2014
GBP000 GBP000 acquisition GBP000 GBP000 GBP000 %
GBP000
United Kingdom 455,812 18,717 (81) (29,048) 3,602 449,002 74.7
North America 49,223 1,195 (2) (197) 4,972 55,191 9.2
Europe 39,996 1,608 (2) (2,619) (309) 38,674 6.4
Japan 16,955 - - - (654) 16,301 2.7
Other Pacific 33,187 775 (4) - 1,751 35,709 5.9
Other - 6,370 (21) - 40 6,389 1.1
---------------- ------------- ------------ ------------------- ----------- ----------------- ---------- ------
595,173 28,665 (110) (31,864) 9,402 601,266 100.0
---------------- ------------- ------------ ------------------- ----------- ----------------- ---------- ------
By Sector (excluding cash)
As at As at
30 June 31 December
2014 2013
% %
Oil & gas 11.2 10.4
Basic materials 8.0 6.3
Industrials 24.6 25.1
Consumer goods 10.8 10.7
Health care 8.6 8.8
Consumer services 8.2 9.3
Telecommunications 0.5 0.6
Utilities 2.1 3.3
Financials 12.6 12.9
Technology 2.4 2.2
Pooled equity investments 11.0 10.4
100.0 100.0
---------------------------- --------- -------------
Investment portfolio valuation
as at 30 June 2014
UK unless otherwise
stated.
Holdings in italics were acquired
since 31 December 2013
GBP'000 %
--------- ------
Oil & gas
Oil & gas producers
BP 18,022 3.00
Royal Dutch Shell 15,255 2.54
Premier Oil 2,504 0.42
Providence Resources 2,346 0.39
Indus Gas 1,844 0.31
Total (Fra) 1,751 0.29
Tullow Oil 1,706 0.28
Xcite Energy 1,335 0.22
44,763 7.45
--------------------------------- --------- ------
Oil equipment & services
Cape 7,356 1.22
Gibson Energy (Can) 5,887 0.98
Schlumberger (USA) 5,518 0.92
National Oilwell Varco
(USA) 2,408 0.40
AMEC 1,214 0.20
Now (USA) 265 0.04
22,648 3.76
--------------------------------- --------- ------
Basic materials
Chemicals
Velocys 10,852 1.80
Croda 3,852 0.64
Elementis 2,258 0.38
Brenntag (Ger) 1,279 0.21
Linde (Ger) 1,241 0.21
19,482 3.24
--------------------------------- --------- ------
Forestry & paper
Mondi 4,248 0.71
4,248 0.71
--------------------------------- --------- ------
Mining
Rio Tinto 13,211 2.20
BHP Billiton 7,558 1.26
Glencore 3,255 0.54
24,024 4.00
--------------------------------- --------- ------
Industrials
Construction & materials
Accsys Technologies 4,546 0.76
Balfour Beatty 3,653 0.61
Marshalls 1,084 0.18
9,283 1.55
--------------------------------- --------- ------
GBP'000 %
--------- ------
Aerospace & defence
Senior 16,292 2.71
BAE Systems 7,789 1.30
Rolls Royce 5,345 0.89
Meggitt 5,060 0.83
Lockheed Martin (USA) 4,229 0.69
Embraer (Bra) 3,586 0.60
42,301 7.02
--------------------------------- --------- ------
General industrials
Smith (DS) 7,647 1.27
7,647 1.27
--------------------------------- --------- ------
Electronic & electrical
equipment
Applied Materials (USA) 6,594 1.10
Morgan Advanced Materials 6,486 1.08
Spectris 5,545 0.92
TT Electronics 2,994 0.50
XP Power 1,751 0.29
Legrand (Fra) 1,167 0.19
Philips Electronics
(Net) 1,153 0.19
25,690 4.27
--------------------------------- --------- ------
Industrial engineering
Weir Group 7,857 1.31
Hill & Smith 7,538 1.25
Cummins (USA) 6,314 1.05
Deere (USA) 5,244 0.87
Renold 2,775 0.46
Caterpillar (USA) 2,542 0.42
IMI 1,300 0.22
Severfield-Rowen 463 0.08
34,033 5.66
--------------------------------- --------- ------
Industrial transportation
AP Moller-Maersk (Den) 1,815 0.30
Wincanton 653 0.11
Goldenport 277 0.05
2,745 0.46
--------------------------------- --------- ------
Support services
Interserve 6,654 1.11
Carillion 4,131 0.69
Babcock 4,022 0.67
Johnson Service 3,459 0.58
Deutsche Post (Ger) 2,654 0.44
SGS (Swi) 1,821 0.30
Sodexo (Fra) 1,536 0.26
Adecco (Swi) 1,459 0.24
Augean 458 0.08
26,194 4.37
--------------------------------- --------- ------
GBP'000 %
--------- ------
Consumer goods
Automobiles & parts
GKN 16,413 2.73
Toyota Motor (Jap) 2,404 0.40
18,817 3.13
--------------------------------- --------- ------
Beverages
Diageo 7,089 1.18
Pernod-Ricard (Fra) 1,317 0.22
8,406 1.40
--------------------------------- --------- ------
Food producers
Associated British
Foods 6,858 1.14
Unilever 4,637 0.77
Nestlé (Swi) 3,611 0.60
15,106 2.51
--------------------------------- --------- ------
Household goods & home construction
Bellway 7,038 1.17
Redrow 6,037 1.00
L'Oreal (Fra) 1,567 0.26
14,642 2.43
--------------------------------- --------- ------
Tobacco
Imperial Tobacco 5,258 0.87
British American Tobacco 1,739 0.29
Swedish Match (Swe) 1,230 0.20
8,227 1.36
--------------------------------- --------- ------
Health care
Health care equipment
& services
Becton Dickinson (USA) 5,187 0.86
Smith & Nephew 4,879 0.81
Fresenius (Ger) 3,578 0.60
Fresenius Medical Care
(Ger) 1,527 0.25
15,171 2.52
--------------------------------- --------- ------
Pharmaceuticals & biotechnology
GlaxoSmithKline 11,726 1.95
BTG 7,590 1.26
AstraZeneca 6,510 1.08
Novartis (Swi) 2,884 0.48
Pfizer (USA) 2,603 0.43
Shire 2,285 0.38
Roche (Swi) 2,268 0.38
Novo-Nordisk (Den) 915 0.15
36,781 6.11
--------------------------------- --------- ------
GBP'000 %
--------- ------
Consumer services
Food & drug retailers
Tesco 3,552 0.59
3,552 0.59
---------------------------- --------- ------
General retailers
Dunelm 7,089 1.18
Findel 2,143 0.36
Inditex (Spa) 1,025 0.17
Topps Tiles 797 0.13
11,054 1.84
---------------------------- --------- ------
Media
Reed Elsevier 7,050 1.17
British Sky Broadcasting 4,972 0.83
Pearson 3,171 0.53
Daily Mail & General
Trust 2,204 0.37
17,397 2.90
---------------------------- --------- ------
Travel & leisure
Greene King 5,314 0.88
Carnival 4,416 0.73
International Consolidated
Airlines 3,057 0.51
Marstons 2,966 0.49
Betfair 1,827 0.30
17,580 2.91
---------------------------- --------- ------
Telecommunications
Mobile telecommunications
Inmarsat 2,712 0.45
2,712 0.45
---------------------------- --------- ------
Utilities
Electricity
SSE 4,701 0.78
4,701 0.78
---------------------------- --------- ------
Gas water & multiutilities
National Grid 5,124 0.85
Severn Trent 1,932 0.32
Centrica 1,094 0.18
8,150 1.35
---------------------------- --------- ------
GBP'000 %
------------- --------
Financials
Banks
HSBC 10,969 1.82
10,969 1.82
------------------------------- ------------- --------
Nonlife insurance
Amlin 11,464 1.91
Hiscox 7,560 1.26
19,024 3.17
------------------------------- ------------- --------
Life insurance / assurance
Prudential 4,023 0.67
Aviva 4,003 0.67
Chesnara 3,180 0.53
Permanent TSB (Ire) 25 -
11,231 1.87
------------------------------- ------------- --------
Real estate investments &
services
St Modwen Properties 4,841 0.81
4,841 0.81
------------------------------- ------------- --------
Real estate investment
trusts
Mucklow (A&J) Group 3,612 0.60
Land Securities 3,335 0.55
6,947 1.15
------------------------------- ------------- --------
Financial services
IP Group 8,030 1.34
International Personal
Finance 7,038 1.17
Provident Financial 6,278 1.04
Deutsche Börse
(Ger) 1,190 0.20
22,536 3.75
------------------------------- ------------- --------
Equity investment instruments
Henderson Japan Capital
Growth 13,897 2.31
Henderson Asia Pacific
Capital Growth 12,609 2.10
Baillie Gifford Pacific 12,009 2.00
First State Asia Pacific 10,269 1.71
Herald Investment Trust 5,525 0.92
Better Capital (2012) 5,000 0.83
Foresight Solar 3,008 0.50
Templeton Emerging
Markets Investment
Trust 2,803 0.47
Scottish Oriental Smaller
Company Trust 822 0.14
65,942 10.98
------------------------------- ------------- --------
GBP'000 %
------------- --------
Technology
Software & computer
services
Microsoft (USA) 7,316 1.22
Sage 2,191 0.36
Amadeus IT (Spa) 1,618 0.27
11,125 1.85
------------------------------- ------------- --------
Technology hardware & equipment
Imagination Technologies 1,898 0.32
Atmel (USA) 1,084 0.18
2,982 0.50
-------------------------- ------- ------
Principal risks and uncertainties
The principal risks of the Corporation relate to the investment
activities and include market price risk, foreign currency risk,
liquidity risk, interest rate risk and credit risk. These are
explained in the notes to the annual accounts for the year ended 31
December 2013. In the view of the board these risks are as
applicable to the remaining six months of the financial year as
they were to the period under review.
The principal risks of the independent fiduciary services
business arise during the course of defaults, potential defaults
and restructurings where we have been appointed to provide
services. To mitigate these risks we work closely with our legal
advisers and, where appropriate, financial advisers, both in the
set up phase to ensure that we have as many protections as
practicable, and at all other stages whether or not there is a
danger of default.
Related party transactions
There have been no related party transactions during the period
which have materially affected the financial position or
performance of the group. During the period transactions between
the Corporation and its subsidiaries have been eliminated on
consolidation. Details of related party transactions are given in
the notes to the annual accounts.
Directors' responsibility statement
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- the half yearly report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure 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 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 entity during
that period.
On behalf of the board
Christopher Smith
29 July 2014
Notes
1. The financial information presented herein does not amount to
full statutory accounts within the meaning of Section 435 of the
Companies Act 2006 and has neither been audited nor reviewed
pursuant to guidance issued by the Auditing Practices Board. The
annual report and financial statements for 2013 have been filed
with the Registrar of Companies. The independent auditors' report
on the annual report and financial statements for 2013 was
unqualified, did not include a reference to any matters to which
the auditor drew attention by way of emphasis without qualifying
the report, and did not contain a statement under section 498(2) or
(3) of the Companies Act 2006.
2. The calculations of NAV and earnings per share are based on:
NAV: shares at end of the period 117,788,551 (30 June 2013:
117,664,360) (31 December 2013: 117,731,109).
Income: average shares during the period 117,781,948 (30 June
2013: 117,657,023) (31 December 2013: 117,681,186).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDRXDDBGSC
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