TIDMLWDB
RNS Number : 3548U
Law Debenture Corp PLC
29 July 2015
The Law Debenture Corporation p.l.c. and its subsidiaries
HALF YEARLY REPORT FOR THE SIX MONTHS TO 30 JUNE 2015
(unaudited)
The Directors recommend an interim dividend of 5.2p on the
ordinary shares for the six months to 30 June 2015. 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, 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
(Registered in England No 30397)
Financial summary
30 June 30 June 31 December
2015 2014 2014
Pence Pence Pence
Share price 510.50 518.50 530.00
NAV per share after proposed
dividend 485.21 484.97 475.82
NAV per share after proposed
dividend
with debt at fair value 476.80 478.12 465.62
Net revenue return per share:
- Investment trust 7.49 6.08 10.08
- Independent fiduciary services 3.26 3.23 6.87
Group net revenue return
per share 10.75 9.31 16.95
Capital return per share 4.04 7.83 3.87
Dividends per share 5.20 4.70 15.70
%
Ongoing charges 1 0.46
Gearing 1 4.90
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.
1 Source AIC.
Performance to 30 June 2015
6 months 1 year 5 years 10 years
% % % %
Share price total return
1 (1.6) 1.5 116.7 177.2
NAV total return 1 3.8 3.1 102.9 183.2
FTSE All-Share Index total
return 3.0 2.6 66.6 97.7
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 2015 by 8.41p (31 December 2014: 10.20p:
30 June 2014: 6.85p).
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
2015 was 3.8%, compared to a total return of 3.0% for the FTSE
Actuaries All-Share Index. Net revenue per share was 10.75p, an
increase of 15.5% over the corresponding period last year, as a
result of a 23.2% increase in the investment trust and a 0.9%
increase in independent fiduciary services. A major factor in the
increase in investment trust revenue was a significant increase in
special dividends.
Dividend
The board has declared an interim dividend of 5.2p (2014: 4.7p).
The dividend will be paid on 11 September 2015 to holders on the
record date of 13 August 2015.The current expectation of the
directors is that the final dividend will be at least
maintained.
Investment trust
It has been a subdued period for equity markets during which a
generally good operating performance from the portfolio companies
has been offset by concerns over macro-economic issues. Some of the
best performing areas of the last few years such as capital goods'
companies have experienced share price weakness as the strength of
the global economic upswing has been questioned, while some of the
weaker areas of recent times, for example, the Japanese stock
market, have made good progress. This rotation is inevitable in
stock markets but ultimately performance from equities is
determined by the growth of earnings and dividends. Companies held
in the portfolio, in aggregate, are generating strong free cashflow
and are therefore paying down debt. This positions them well if
there is economic turbulence.
The stocks that added the most value over the period included
house-builders, Redrow and Bellway, and textile rental company,
Johnson Service Group. One of the largest detractors was Velocys,
which fell as a result of the fall in the oil price making the
adoption of their gas to liquid technology less attractive than
expected.
Outlook
The fall in the oil price has reduced inflation and it should
boost economic activity. This will help investor confidence at a
time when valuations of companies are reasonable and balance sheets
are strong. We will retain a relatively long list of stocks to
mitigate risk.
Independent fiduciary services
Revenue, net of cost of sales, which represents legal costs
recharged to clients, increased by 1.4% over the corresponding
period last year. Administration costs increased by 2.2% which
included exit costs from our agency solutions business. Profit
before tax fell by 1.0%.
Group income statement
for the six months ended 30 June 2015 (unaudited)
30 June 2015 30 June 2014
-------------------------------- ----------------------------------------
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------- -------- --------- ----------- --------- ----------------
UK dividends 8,042 - 8,042 7,497 - 7,497
UK special dividends 1,643 - 1,643 631 - 631
Overseas dividends 1,584 - 1,584 1,508 - 1,508
Overseas special dividends 183 - 183 8 - 8
Interest from securities - - - 103 - 103
----------------------------- ----------- -------- --------- ----------- --------- ----------------
11,452 - 11,452 9,747 - 9,747
Interest income 40 - 40 34 - 34
Independent fiduciary
services fees 14,878 - 14,878 15,345 - 15,345
Other income 139 - 139 49 - 49
Total income 26,509 - 26,509 25,175 - 25,175
Net gain on investments
held at fair
value through profit
or loss - 4,978 4,978 - 9,388 9,388
----------------------------- ----------- -------- --------- ----------- --------- ----------------
Gross income and capital
gains 26,509 4,978 31,487 25,175 9,388 34,563
Cost of sales (1,482) - (1,482) (2,040) - (2,040)
Administrative expenses (10,480) (209) (10,689) (10,226) (169) (10,395)
----------------------------- ----------- -------- --------- ----------- --------- ----------------
Operating profit 14,547 4,769 19,316 12,909 9,219 22,128
Finance costs
Interest payable (1,449) - (1,449) (1,434) - (1,434)
----------------------------- ----------- -------- --------- ----------- --------- ----------------
Profit before taxation 13,098 4,769 17,867 11,475 9,219 20,694
Taxation (414) - (414) (507) - (507)
Profit for period 12,684 4,769 17,453 10,968 9,219 20,187
----------------------------- ----------- -------- --------- ----------- --------- ----------------
Return per ordinary share
(pence) 10.75 4.04 14.79 9.31 7.83 17.14
----------------------------- ----------- -------- --------- ----------- --------- ----------------
Diluted return per ordinary
share (pence) 10.75 4.04 14.79 9.30 7.82 17.12
----------------------------- ----------- -------- --------- ----------- --------- ----------------
Statement of comprehensive income
for the six months ended 30 June 2015 (unaudited)
30 June 2015 30 June 2014
----------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- --------- -------- -------- --------
Profit for the period 12,684 4,769 17,453 10,968 9,219 20,187
Foreign exchange on
translation of foreign
operations - (57) (57) - (106) (106)
------------------------- -------- -------- --------- -------- -------- --------
Total comprehensive
income for the period 12,684 4,712 17,396 10,968 9,113 20,081
------------------------- -------- -------- --------- -------- -------- --------
Group statement of financial position
30 June 30 June 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Assets
Non current assets
Goodwill 2,208 2,143 2,215
Property, plant and equipment 88 159 131
Other intangible assets 30 122 45
Investments held at fair value
through profit or
loss 606,802 601,266 600,894
Deferred tax assets 1,162 704 1,234
---------------------------------- ------------- ------------- ------------
Total non current assets 610,290 604,394 604,519
---------------------------------- ------------- ------------- ------------
Current assets
Trade and other receivables 8,842 8,850 7,491
Other accrued income and prepaid
expenses 5,598 5,329 4,679
Cash and cash equivalents 50,630 49,136 50,321
---------------------------------- ------------- ------------- ------------
Total current assets 65,070 63,315 62,491
---------------------------------- ------------- ------------- ------------
Total assets 675,360 667,709 667,010
---------------------------------- ------------- ------------- ------------
Current liabilities
Trade and other payables 16,296 14,385 13,012
Short term borrowing 27,601 25,248 26,548
Corporation tax payable 648 656 632
Other taxation including social
security 677 636 613
Deferred income 4,098 4,270 4,027
---------------------------------- ------------- ------------- ------------
Total current liabilities 49,320 45,195 44,832
---------------------------------- ------------- ------------- ------------
Non current liabilities and
deferred income
Long term borrowings 39,485 39,458 39,472
Retirement benefit obligations 2,890 729 3,250
Deferred income 4,829 5,546 5,245
Total non current liabilities 47,204 45,733 47,967
---------------------------------- ------------- ------------- ------------
Total net assets 578,836 576,781 574,211
---------------------------------- ------------- ------------- ------------
Equity
Called up share capital 5,916 5,908 5,916
Share premium 8,637 8,296 8,622
Capital redemption 8 8 8
Own shares (1,493) (1,712) (1,686)
Capital reserves 529,038 528,921 524,269
Retained earnings 36,168 35,278 36,463
Translation reserve 562 82 619
---------------------------------- ------------- ------------- ------------
Total equity 578,836 576,781 574,211
---------------------------------- ------------- ------------- ------------
Group statement of cash flows
For the six months ended 30 June 2015
31 December
30 June 30 June 2014
2015 (unaudited) 2014 (unaudited) (audited)
GBP000 GBP000 GBP000
------------------------------------- ------------------ ------------------ --------------
Operating activities
Operating profit before interest
payable and taxation 19,316 22,128 28,635
(Gains) on investments (4,769) (9,219) (4,567)
Foreign exchange gains/(losses) 7 24 (49)
Depreciation of property, plant
and equipment 43 61 120
Amortisation of intangible assets 15 101 185
(Increase) in receivables (2,270) (2,429) (420)
Increase in payables 3,016 2,217 291
Transfer from capital reserves (19) (14) (389)
Normal pension contributions
in excess of cost (360) (360) (685)
------------------------------------- ------------------ ------------------ --------------
Cash generated from operating
activities 14,979 12,509 23,121
------------------------------------- ------------------ ------------------ --------------
Taxation (326) (731) (1,408)
Operating cash flow 14,653 11,778 21,713
------------------------------------- ------------------ ------------------ --------------
Investing activities
Acquisition of property, plant
and equipment - (13) (40)
Expenditure on intangible assets - - (10)
Purchase of investments (26,691) (28,665) (54,894)
Sale of investments 25,706 31,864 53,997
Cash flow from investing activities (985) 3,186 (947)
------------------------------------- ------------------ ------------------ --------------
Financing activities
Interest paid (1,449) (1,434) (2,896)
Dividends paid (12,979) (12,368) (17,911)
Proceeds of increase in share
capital 15 13 347
Purchase of own shares 193 (17) 9
------------------------------------- ------------------ ------------------ --------------
Net cash flow from financing
activities (14,220) (13,806) (20,451)
------------------------------------- ------------------ ------------------ --------------
Net (decrease)/increase in cash
and cash equivalents (552) 1,158 315
------------------------------------- ------------------ ------------------ --------------
Cash and cash equivalents at
beginning of period 23,773 22,895 22,895
Foreign exchange (losses)/gains
on cash and cash equivalents (192) (165) 563
------------------------------------- ------------------ ------------------ --------------
Cash and cash equivalents at
end of period 23,029 23,888 23,773
------------------------------------- ------------------ ------------------ --------------
Cash and cash equivalents comprise
Cash and cash equivalents 50,630 49,136 50,321
Short term borrowings (27,601) (25,248) (26,548)
------------------------------------- ------------------ ------------------ --------------
23,029 23,888 23,773
------------------------------------- ------------------ ------------------ --------------
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
2015 5,916 8,622 (1,686) 8 619 524,269 36,463 574,211
--------------------- --------- --------- -------- ------------ ------------ ---------- ---------- ---------
Net profit - - - - - 4,769 12,684 17,453
Other comprehensive
income:
Foreign exchange - - - - (57) - - (57)
--------------------- --------- --------- -------- ------------ ------------ ---------- ---------- ---------
Total comprehensive
income for the
period - - - - (57) 4,769 12,684 17,396
Issue of shares - 15 - - - - - 15
Movement in own
shares - - 193 - - - - 193
Dividend relating
to 2014 - - - - - - (12,979) (12,979)
Total equity
at 30 June 2015 5,916 8,637 (1,493) 8 562 529,038 36,168 578,836
--------------------- --------- --------- -------- ------------ ------------ ---------- ---------- ---------
Group segmental analysis
Independent fiduciary
Investment trust services Total
---------------------------------- ------------------------------------- --------------------------------------
30 June 30 June 31 Dec 30 June 30 June 31 Dec 30 June 30 June 31 Dec
2015 2014 2014 2015 2014 2014 2015 2014 2014
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
Revenue
Income 11,492 9,781 16,916 14,878 15,345 32,366 26,370 24,126 49,282
Other income - - 60 139 49 160 139 49 220
Cost of sales - - - (1,482) (2,040) (5,291) (1,482) (2,040) (5,291)
Administration
costs (1,384) (1,329) (2,606) (9,096) (8,897) (17,625) (10,480) (10,226) (20,231)
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
10,108 8,452 14,370 4,439 4,457 9,610 14,547 12,909 23,980
Interest (net) (1,276) (1,286) (2,498) (173) (148) (310) (1,449) (1,434) (2,808)
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
Return,
including
profit on
ordinary
activities
before
taxation 8,832 7,166 11,872 4,266 4,309 9,300 13,098 11,475 21,172
Taxation - - - (414) (507) (1,199) (414) (507) (1,199)
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
Return,
including
profit
attributable
to
shareholders 8,832 7,166 11,872 3,852 3,802 8,101 12,684 10,968 19,973
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
Revenue
return
per ordinary
share
(pence) 7.49 6.08 10.08 3.26 3.23 6.87 10.75 9.31 16.95
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
Assets 620,189 610,444 609,653 55,171 57,265 57,357 675,360 667,709 667,010
Liabilities (61,216) (52,961) (51,100) (35,308) (37,967) (41,699) (96,524) (90,928) (92,799)
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
Total net
assets 558,973 557,483 558,553 19,863 19,298 15,658 578,836 576,781 574,211
----------- ---------- --------- ---------- ---------- ------------- ----------- ------------ -----------
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
2014 Purchases of proceeds (depreciation) 2015
GBP000 GBP000 acquisition GBP000 GBP000 GBP000 %
GBP000
United Kingdom 437,740 22,769 (72) (25,157) 6,520 441,800 72.8
North America 56,129 - - - (4,085) 52,044 8.6
Europe 38,604 - - (549) 1,124 39,179 6.5
Japan 17,462 3,336 (2) - 2,537 23,333 3.8
Other Pacific 38,621 586 - - 143 39,350 6.5
Other 12,338 - - - (1,242) 11,096 1.8
---------------- ------------- ------------ ------------------- ----------- ----------------- ---------- ------
600,894 26,691 (74) (25,706) 4,997 606,802 100.0
---------------- ------------- ------------ ------------------- ----------- ----------------- ---------- ------
By Sector (excluding cash)
As at As at
30 June 31 December
2015 2014
% %
Oil & gas 8.2 8.7
Basic materials 7.4 8.0
Industrials 26.7 25.4
Consumer goods 10.0 11.3
Health care 7.8 8.0
Consumer services 8.8 8.3
Telecommunications 0.6 0.5
Utilities 2.5 2.9
Financials* 26.7 25.1
Technology 1.3 1.8
100.0 100.0
---------------------------- --------- -------------
Investment portfolio valuation
as at 30 June 2015
UK unless otherwise stated.
Holdings in italics were acquired after
31 December 2014
GBP'000 %
--------- ------
Oil & gas
Oil & gas producers
BP 14,704 2.42
Royal Dutch Shell 10,842 1.79
Tullow Oil 3,056 0.50
Premier Oil 1,863 0.31
Total (Fra) 1,280 0.21
Indus Gas 782 0.13
Providence Resources 732 0.12
Xcite Energy 640 0.11
33,899 5.59
----------------------------- --------- ------
Oil equipment & services
Cape 6,312 1.04
Schlumberger (USA) 4,383 0.72
Gibson Energy (Can) 3,634 0.60
National Oilwell Varco
(USA) 1,534 0.25
Now (USA) 158 0.03
16,021 2.64
----------------------------- --------- ------
Basic materials
Chemicals
Velocys 6,123 1.00
Croda 4,816 0.79
Elementis 2,225 0.37
Linde (Ger) 1,207 0.20
Brenntag (Ger) 962 0.16
15,333 2.52
----------------------------- --------- ------
Forestry & paper
Mondi 5,480 0.90
5,480 0.90
----------------------------- --------- ------
Mining
Rio Tinto 11,110 1.83
Glencore 6,382 1.05
BHP Billiton 6,245 1.03
South 32 (Aus.) 436 0.07
Lonmin 30 -
24,203 3.98
----------------------------- --------- ------
Industrials
Construction & materials
Marshalls 9,766 1.61
Balfour Beatty 4,264 0.70
Accsys Technologies 3,265 0.54
17,295 2.85
----------------------------- --------- ------
Aerospace & defence
Senior 16,510 2.72
BAE Systems 8,122 1.34
Rolls Royce 6,090 1.00
Lockheed Martin (USA) 5,318 0.88
Meggitt 4,664 0.77
Embraer(Bra) 3,242 0.53
43,946 7.24
----------------------------- --------- ------
General industrials
Smith(DS) 10,658 1.76
10,658 1.76
----------------------------- --------- ------
Electronic & electrical equipment
Morgan Advanced Materials 6,528 1.08
Applied Materials (USA) 6,104 1.01
Spectris 5,272 0.87
TT Electronics 2,106 0.35
XP Power 1,884 0.31
Legrand (Fra) 1,021 0.17
Philips Electronics (Net) 1,005 0.17
23,920 3.96
----------------------------- --------- ------
Industrial engineering
Hill & Smith 10,082 1.66
Deere (USA) 6,112 1.01
Cummins (USA) 5,838 0.96
Weir Group 4,240 0.70
Renold 3,754 0.62
Caterpillar (USA) 2,157 0.36
IMI 2,108 0.35
Severfield 571 0.09
34,862 5.75
----------------------------- --------- ------
Industrial transportation
AP Moller-Maersk (Den) 1,419 0.23
Wincanton 865 0.14
Goldenport 96 0.02
2,380 0.39
----------------------------- --------- ------
Support services
Johnson Service 7,305 1.20
Interserve 6,671 1.10
Carillion 3,755 0.62
Babcock 3,738 0.62
Deutsche Post (Ger) 2,344 0.39
Adecco (Swi) 1,566 0.26
SGS (Swi) 1,508 0.25
Sodexo (Fra) 1,474 0.24
Augean 539 0.09
28,900 4.77
----------------------------- --------- ------
Consumer goods
Automobiles & parts
GKN 15,128 2.49
Toyota Motor (Jap) 5,861 0.97
20,989 3.46
----------------------------- --------- ------
Beverages
Pernod-Ricard (Fra) 1,377 0.23
1,377 0.23
----------------------------- --------- ------
Food producers
Unilever 4,776 0.79
Nestlé (Swi) 3,660 0.60
8,436 1.39
----------------------------- --------- ------
Household goods & home construction
Bellway 10,665 1.76
Redrow 9,823 1.62
L'Oreal (Fra) 1,764 0.29
22,252 3.67
----------------------------- --------- ------
Tobacco
Imperial Tobacco 6,132 1.01
Swedish Match (Swe) 1,096 0.18
7,228 1.19
----------------------------- --------- ------
Health care
Health care equipment & services
Becton Dickinson (USA) 6,755 1.10
Smith & Nephew 5,048 0.83
Fresenius (Ger) 5,047 0.82
Spire Healthcare 4,984 0.82
Fresenius Medical Care
(Ger) 2,055 0.34
23,889 3.91
----------------------------- --------- ------
Pharmaceuticals & biotechnology
GlaxoSmithKline 9,919 1.63
AstraZeneca 4,019 0.66
Novartis (Swi) 3,417 0.56
Pfizer (USA) 3,196 0.53
Roche (Swi) 2,053 0.34
Novo-Nordisk (Den) 1,177 0.19
23,781 3.91
----------------------------- --------- ------
Consumer services
Food & drug retailers
Tesco 3,719 0.61
3,719 0.61
----------------------------- --------- ------
General retailers
Dunelm 7,697 1.27
Findel 1,729 0.28
Auto Trader 1,429 0.24
Topps Tiles 1,078 0.18
Inditex (Spa) 1,062 0.18
12,995 2.15
----------------------------- --------- ------
Media
Reed Elsevier 7,763 1.28
Sky 5,698 0.94
Pearson 3,314 0.55
Daily Mail & General Trust 2,462 0.41
19,237 3.18
----------------------------- --------- ------
Travel & leisure
Carnival 6,496 1.07
International Consolidated
Airlines 4,080 0.67
Betfair 3,765 0.62
Marstons 3,290 0.54
17,631 2.90
----------------------------- --------- ------
Telecommunications
Mobile telecommunications
Inmarsat 3,319 0.55
3,319 0.55
----------------------------- --------- ------
Utilities
Electricity
SSE 4,608 0.76
Greenko 2,790 0.46
7,398 1.22
----------------------------- --------- ------
Gas, water & multiutilities
National Grid 4,985 0.82
Severn Trent 2,081 0.34
Centrica 923 0.15
7,989 1.31
----------------------------- --------- ------
Financials
Banks
HSBC 10,547 1.74
10,547 1.74
----------------------------- --------- ------
Nonlife insurance
Amlin 11,662 1.92
Hiscox 7,890 1.30
19,552 3.22
----------------------------- --------- ------
Life insurance/assurance
Prudential 4,598 0.75
Aviva 3,865 0.64
Chesnara 3,250 0.54
Permanent TSB (Ire) 13 -
11,726 1.93
----------------------------- --------- ------
Real estate investments & services
St Modwen Properties 6,107 1.01
6,107 1.01
----------------------------- --------- ------
Real estate investment
trusts
Mucklow (A&J) Group 4,020 0.66
Land Securities 3,872 0.64
7,892 1.30
----------------------------- --------- ------
Financial services
IP Group 10,258 1.69
Provident Financial 8,044 1.33
International Personal
Finance 5,483 0.90
Oxford Sciences Innovation 3,333 0.55
(unlisted)
Deutsche Börse (Ger) 1,385 0.23
28,503 4.70
----------------------------- --------- ------
Equity investment instruments
Henderson Japan Capital
Growth 17,472 2.88
Henderson Asia Pacific
Capital Growth 13,443 2.22
Baillie Gifford Pacific 12,787 2.11
First State Asia Pacific 11,880 1.96
Templeton Emerging Markets
Investment Trust 7,854 1.29
Herald Investment Trust 6,052 1.00
Better Capital (2012) 3,500 0.58
Foresight Solar 3,128 0.52
Scottish Oriental Smaller
Company Trust 804 0.13
76,920 12.69
----------------------------- --------- ------
Technology
Software & computer services
Microsoft (USA) 5,614 0.92
Amadeus IT (Spa) 1,244 0.20
6,858 1.12
----------------------------- --------- ------
Technology hardware & equipment
Atmel (USA) 1,241 0.20
1,241 0.20
----------------------------- --------- ------
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 2014. 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
28 July 2015
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 2014 have been filed
with the Registrar of Companies. The independent auditors' report
on the annual report and financial statements for 2014 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 118,030,510 (30 June 2014:
117,788,551) (31 December 2014:117,951,359). Income: average shares
during the period 118,009,527 (30 June 2014: 117,781,948)(31
December 2014: 117,847,733).
3. Listed investments are all traded on active markets and as
defined by IFRS 7 are level 1 financial instruments. As such they
are valued at unadjusted quoted bid prices.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDRGGDBGUI
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