TIDMOIG
RNS Number : 0688W
Oryx International Growth Fund Ld
11 November 2010
FOR IMMEDIATE RELEASE
RELEASED BY BNP PARIBAS FUND SERVICES (GUERNSEY) LIMITED
HALF YEARLY RESULTS ANNOUNCEMENT
THE BOARD OF DIRECTORS OF ORYX INTERNATIONAL GROWTH FUND LIMITED ANNOUNCE
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010
CHAIRMAN'S STATEMENT
I am pleased to report a further rise in the Net Asset Value per share of 11.3%
to 247p in the six months to 30th September 2010, which reflects an out
performance against our benchmark the small cap indices of slightly in excess of
8%.
As has been highlighted in the past, the investment style of North Atlantic
concentrates on identifying value in target companies and then devising a
strategy for unlocking that value. This is an iterative process and positive
developments continue to be made across a number of our investments. However,
the economic background continues to be challenging, with both the capital and
credit markets highly restrictive. This makes progress slower than we would have
hoped and, as I stated in the annual report, realising the full value of some of
our investments will take time.
As realisations occur, it is also important that North Atlantic continues to
identify new investment opportunities. I am pleased to report that good progress
continues to be made on this front.
In line with our stated policy, no dividend will be paid for the period.
Nigel Cayzer
Chairman
11 November 2010
INVESTMENT ADVISER'S REPORT
During the six month period under review the Net Asset Value per share rose by
11.3% which compares favourably with a fall in the FTSE Index of 2.3% and a rise
in the Small Cap Index of 3.2%.
Quoted equities:
The outstanding performer during the period was undoubtedly Castle Support
Services which rose by 50% following an offer from Sulzer. RPC also rose nearly
20% following better than expected figures; Tenon prior to the sale of our
holding by 15% and Quarto again following good figures by 33%. Inspired Gaming
also rose nearly 20% following a takeover.
Unquoted:
The carrying value of Nastor/Celsis was written up during the period, reflecting
a third party transaction, whilst the Avanti loan note was repaid at par plus
accrued.
Outlook:
The second half of the year has started well with a bid approach for Chrysalis
and the remainder of the portfolio appears to be performing satisfactorily.
The principal concern is that stock market liquidity in smaller companies is
very limited, making it difficult to acquire or sell meaningful quantities of
shares.
The unquoted portfolio continues to perform well and could create substantial
value over the next couple of years.
We therefore expect to build further on the good performance of the first half
and look forward to the future with confidence.
North Atlantic Value LLP
11 November 2010
TEN LARGEST EQUITY HOLDINGS
as at 30 September 2010
RPC Group Plc
Cost GBP2.85m (1,250,000 shares)
Market value GBP3.69m representing 7.24% of Net Asset Value
RPC is the largest company plastic packaging company in Europe. A new chairman
has restructured the business and we believe this will lead to a significant
improvement in profitability over the next few years.
Chrysalis Group Plc
Cost GBP3.50m (3,500,000 shares)
Market value GBP3.50m representing 6.88% of Net Asset Value
Chrysalis Group's principal asset is a substantial music library which is
believed to be worth significantly above the current share price. The company
has recently announced it is in discussions to be acquired.
BBA Aviation plc
Cost GBP3.94m (1,500,000 shares)
Market value GBP2.83m representing 5.55% of Net Asset Value
BBA Aviation's principal business is Signature which is the leading provider of
aviation support facilities for private jets throughout the world. The company
has modest debt and is seeing good growth as the US in particular emerges from
recession.
Catalyst Media Group Plc
Cost GBP1.44m (3,125,000 shares)
Market value GBP2.66m representing 5.22% of Net Asset Value
Catalyst Media Group's principal asset is a 21% stake in SIS the leading
provider of data and racing programmes to the bookmaking industry. The company
has recently announced that it is seeking to be acquired.
Orthoproducts Limited
Cost GBP1.21m (319 shares)
Market value GBP2.55m representing 5.01% of Net Asset Value
Orthoplastics is one of two companies in the world capable of manufacturing
advanced plastic materials for the orthopedics industry. In addition the company
is successful in rapidly growing plastic components for the same industry.
Gleeson (M.J.) Group Plc
Cost GBP5.71m (2,251,902 shares)
Market value GBP2.52m representing 4.95% of Net Asset Value
Gleeson is a small builder with operations in the Midlands and North of England.
The company has no debt and was modestly profitable for the twelve months ended
June 2010. Our estimated private market value of the business is over 50% higher
than the current share price.
Quarto Group Inc
Cost GBP2.47m (2,050,000 shares)
Market value GBP2.36m representing 4.63% of Net Asset Value
Quarto is the world's largest publisher of 'coffee table' books, but also has
more traditional publishing operations. Recent results have been good and the
share price has responded favourably.
Bavaria Industriekapital AG
Cost GBP1.79 (198,350 shares)
Market value GBP2.26m representing 4.44% of Net Asset Value
Bavaria Industriekapital AG is a small German industrial conglomerate. The
company has no debt and trades on a modest price earnings ratio. The stock is
very illiquid and the holding was reduced over the period.
Idox Plc
Cost GBP2.03m (18,019,522 shares)
Market value GBP2.07m representing 4.07% of Net Asset Value
Idox is a specialist software company servicing local authorities. The company
has no debt and substantial cash balances. The private market value is believed
to be significantly above the current share price.
Augean Plc
Cost GBP4.50m (6,575,284 shares)
Market value GBP1.84m representing 3.62% of Net Asset Value
Augean is the UK's largest hazardous waste landfill company. The company has
little debt and generates substantial cashflow.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm to the best of their knowledge that:
· The half-yearly accounts, which have been prepared in accordance with
International Financial Reporting Standards, give a true and fair view of the
assets, liabilities, financial position and profit of the Company and the
undertakings included in the consolidation taken as a whole as required by DTR
4.2.4R ;
· the Interim Management Report and Investment Adviser's Report include a
fair review of the information required by DTR 4.2.7R (indication of important
events during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
· the Interim Management Report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related party transactions and changes
therein).
By order of the Board
Walid Chatila
Rupert Evans
Director
Director
11 November 2010 11
November 2010
INTERIM MANAGEMENT REPORT
Review of Business
A summary of the performance of the Group and future outlook is provided in the
Investment Adviser's report on page 5.
Dividend
The Directors do not propose payment of a dividend (30 September 2009 - Nil, 31
March 2010 - Nil).
Capital values
At 30 September 2010 the value of the assets available to shareholders was
GBP50.9m (30 September 2009 - GBP49.2m, 31 March 2010 - GBP50.0m) and the Net
Asset Value per share was GBP2.47 (30 September 2009 - GBP2.16, 31 March 2010 -
GBP2.22).
Related party transactions
Related party transactions are disclosed in note 8 to the condensed financial
statements.
Risks and uncertainties
The main risks arising from the Group's financial instruments are:
(i) market risk, including currency risk, interest rate risk and other
price risk;
(ii) liquidity risk; and
(iii) credit risk
The Company Secretary, in close cooperation with the Board of Directors and the
Investment Manager, coordinates the Group's risk management. The policies for
managing each of these risks are summarised below and have been applied
throughout the period.
(i) Market risk
The fair value or future cash flows of a financial instrument held by the Group
may fluctuate because of changes in market prices. This market risk comprises
currency risk, interest rate risk and other price risk. The Board of Directors
reviews and agrees policies for managing these risks, which policies have
remained substantially unchanged from those applying in the year ended 31 March
2010. The Investment Manager assesses the exposure to market risk when making
each investment decision and monitors the overall level of market risk on the
whole of the investment portfolio on an ongoing basis.
Currency risk
The functional and presentational currency of the Group is Sterling and,
therefore, the Group's principal exposure to foreign currency risk comprises
investments priced in other currencies, principally US Dollars. The Investment
Manager monitors the Group's exposure to foreign currencies and reports to the
board on a regular basis. The Investment Manager measures the risk to the Group
of the foreign currency exposure by considering the effect on the net asset
value and income of a movement in the rates of exchange to which the Group's
assets, liabilities, income and expenses are exposed.
Income denominated in foreign currencies is converted to Sterling on receipt.
The Group's financial assets comprise fixed and equity investments, trade
receivables and cash balances.
The Group finances its investment activities through the Group's Ordinary Share
capital and reserves. The Group's financial liabilities comprise trade
payables.
Interest rate risk
Interest rate movements may affect:
· the fair value of the investments in fixed rate securities;
· the level of income receivable on cash deposits.
The possible effects on fair value and cash flows that could arise as a result
of changes in interest rates are taken into account when making investment
decisions. The Board reviews on a regular basis the values of the unquoted
loans to companies in which private equity investment is made. Interest rate
risk is not significant to the Group.
Other price risk
Other price risks (i.e. changes in market prices other than those arising from
currency risk or interest rate risk) may affect the value of investments.
The Group's exposure to price risk comprises mainly movements in the value of
the Group's investments.
The Board of Directors manages the market price risks inherent in the investment
portfolios by ensuring full and timely access to relevant investment information
from the Investment Manager. The Board meets regularly and at each meeting
reviews investment performance. The Board monitors the Investment Manager's
compliance with the Group's objectives and is directly responsible for
investment strategy and asset allocation.
(ii) Liquidity risk
This is the risk that the Group will encounter difficulty in meeting obligations
associated with financial liabilities.
Liquidity risk is significant as the Group invests in unlisted equities and
other investments that may not be readily realisable.
In accordance with the Group's policy, the Investment Manager monitors the
Company's liquidity risk, and the Board of Directors reviews it.
(iii) Credit risk
The Group does not have any significant exposure to credit risk arising from any
one individual party. Credit risk is spread across a number of counterparties,
each having an immaterial effect on the Group's cash flows, should a default
happen.
By order of the Board
Walid Chatila
Rupert Evans
Director
Director
11 November 2010 11
November 2010
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 September 2010, expressed in GBP sterling
+----------------+--------+-------------+-------------+-------------+
| | | Six | Six | |
| | | months | months | Year |
| | | ended | ended | |
| | | 30 | 30 | ended |
| | | September | September | 31 |
| | | | | March |
+----------------+--------+-------------+-------------+-------------+
| | | 2010 | 2009 | 2010 |
+----------------+--------+-------------+-------------+-------------+
| | Notes | GBP | GBP | GBP |
+----------------+--------+-------------+-------------+-------------+
| Income | 2 (a) | | | |
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| Interest | | 27,447 | 197,239 | 451,310 |
+----------------+--------+-------------+-------------+-------------+
| Dividends | | 1,165,746 | 1,179,003 | 1,766,236 |
| and | | | | |
| investment | | | | |
| income | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | 1,193,193 | 1,376,242 | 2,217,546 |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| Realised | 2 (g) | (2,339,640) | (1,034,886) | (1,480,675) |
| losses | | | | |
| on | | | | |
| investments | | | | |
+----------------+--------+-------------+-------------+-------------+
| Unrealised | 2 (g) | 6,075,383 | 11,375,113 | 13,432,513 |
| gain on | | | | |
| revaluation | | | | |
| of | | | | |
| investments | | | | |
+----------------+--------+-------------+-------------+-------------+
| Gain/(loss) | 2 (f) | 626 | (12,492) | (18,297) |
| on foreign | | | | |
| currency | | | | |
| translation | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | 4,929,562 | 11,703,977 | 14,151,087 |
| Income | | | | |
| from | | | | |
| investments | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| Expenses | 2 (j) | | | |
+----------------+--------+-------------+-------------+-------------+
| Management | | 273,578 | 253,032 | 523,255 |
| and | | | | |
| Investment | | | | |
| Adviser's | | | | |
| fee | | | | |
+----------------+--------+-------------+-------------+-------------+
| Custodian | | 7,335 | 9,962 | 17,894 |
| fees | | | | |
+----------------+--------+-------------+-------------+-------------+
| Administration | | 26,579 | 25,226 | 51,496 |
| fees | | | | |
+----------------+--------+-------------+-------------+-------------+
| Registrar | | 5,422 | 10,822 | 14,763 |
| and | | | | |
| transfer | | | | |
| agent | | | | |
| fees | | | | |
+----------------+--------+-------------+-------------+-------------+
| Transaction | | 31,468 | 51,644 | 132,580 |
| costs | | | | |
+----------------+--------+-------------+-------------+-------------+
| Directors' | | 93,736 | 92,352 | 132,580 |
| fees and | | | | |
| expenses | | | | |
+----------------+--------+-------------+-------------+-------------+
| Audit | | 24,082 | 12,534 | 36,500 |
| fees | | | | |
+----------------+--------+-------------+-------------+-------------+
| Insurance | | 4,401 | 5,264 | 10,500 |
+----------------+--------+-------------+-------------+-------------+
| Legal | | 120,942 | 143,179 | 225,544 |
| and | | | | |
| professional | | | | |
| fees | | | | |
+----------------+--------+-------------+-------------+-------------+
| Other | | 12,783 | 23,938 | 492,593 |
| expenses | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| Total | | 600,326 | 627,953 | 1,637,705 |
| expenses | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| Net | | 4,329,236 | | 12,513,382 |
| income | | | 11,076,024 | |
| for | | | | |
| the | | | | |
| period | | | | |
| / year | | | | |
| before | | | | |
| taxation | | | | |
+----------------+--------+-------------+-------------+-------------+
| Withholding | | 122,492 | 222,358 | 275,063 |
| tax on | | | | |
| dividends | | | | |
+----------------+--------+-------------+-------------+-------------+
| Net | | 4,206,744 | 10,853,666 | 12,238,319 |
| income | | | | |
| for | | | | |
| the | | | | |
| period | | | | |
| / year | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| | | | | |
+----------------+--------+-------------+-------------+-------------+
| Earnings | 7 | GBP0.20 | GBP0.47 | GBP0.54 |
| per | | | | |
| share - | | | | |
| basic | | | | |
| and | | | | |
| diluted | | | | |
+----------------+--------+-------------+-------------+-------------+
All items in the above statement are derived from continuing operations.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2010, expressed in GBP sterling
+---------------+--------+-------------+-------------+-------------+
| | | 30 | 30 | 31 |
| | | September | September | March |
| | | 2010 | 2009 | 2010 |
+---------------+--------+-------------+-------------+-------------+
| | Notes | GBP | GBP | GBP |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| Non-current | | | | |
| assets | | | | |
+---------------+--------+-------------+-------------+-------------+
| Investments | | 41,726,203 | 44,617,393 | 51,162,498 |
| designated | | | | |
| at fair | | | | |
| value | | | | |
| through | | | | |
| profit or | | | | |
| loss | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| Current | | | | |
| assets | | | | |
+---------------+--------+-------------+-------------+-------------+
| Other | 2 (c) | 80,748 | 88,812 | 102,333 |
| receivables | | | | |
+---------------+--------+-------------+-------------+-------------+
| Dividends | | 171,225 | 207,557 | 173,230 |
| and | | | | |
| interest | | | | |
| receivable | | | | |
+---------------+--------+-------------+-------------+-------------+
| Amounts | | 22,455 | 153,332 | 12,687 |
| due | | | | |
| from | | | | |
| brokers | | | | |
+---------------+--------+-------------+-------------+-------------+
| Cash | 2 (d) | 9,343,390 | 5,469,891 | 195,000 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | 9,617,818 | 5,919,592 | 483,250 |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
| Total | | 51,344,021 | 50,536,985 | 51,645,748 |
| assets | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| Current | | | | |
| liabilities | | | | |
+---------------+--------+-------------+-------------+-------------+
| Overdraft | | - | - | 1,116,352 |
+---------------+--------+-------------+-------------+-------------+
| Amounts | | 66,440 | 959,415 | 34,632 |
| due to | | | | |
| brokers | | | | |
+---------------+--------+-------------+-------------+-------------+
| Creditors | 2 (e) | 372,010 | 327,665 | 456,761 |
| and | | | | |
| accrued | | | | |
| expenses | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | 438,450 | 1,287,080 | 1,607,745 |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
| Net | | 50,905,571 | 49,249,905 | 50,038,003 |
| assets | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| Shareholders' | | | | |
| equity | | | | |
+---------------+--------+-------------+-------------+-------------+
| Called | 3 | 10,314,310 | 11,422,913 | 11,252,912 |
| up | | | | |
| share | | | | |
| capital | | | | |
+---------------+--------+-------------+-------------+-------------+
| Share | 3 | 42,696,509 | 42,696,509 | 42,696,509 |
| premium | | | | |
+---------------+--------+-------------+-------------+-------------+
| Capital | | 1,246,500 | 1,246,500 | 1,246,500 |
| redemption | | | | |
| reserve | | | | |
+---------------+--------+-------------+-------------+-------------+
| Other | 4 | (3,351,748) | (6,116,017) | (5,157,918) |
| reserves | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
| Total | | 50,905,571 | 49,249,905 | 50,038,003 |
| equity | | | | |
| shareholders' | | | | |
| funds | | | | |
+---------------+--------+-------------+-------------+-------------+
| | | | | |
+---------------+--------+-------------+-------------+-------------+
| Net | 7 | GBP2.47 | GBP2.16 | GBP2.22 |
| Asset | | | | |
| Value | | | | |
| per | | | | |
| Share | | | | |
| - | | | | |
| basic | | | | |
| and | | | | |
| diluted | | | | |
+---------------+--------+-------------+-------------+-------------+
This interim report was approved by the Board of Directors on 11 November 2010
and signed on its behalf by:
Walid Chatila Rupert Evans
Director Director
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2010, expressed in GBP sterling
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | Share | Share | Capital | Other | Total |
| | | capital | premium | redemption | reserves | |
| | | | | reserve | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | GBP | GBP | GBP | GBP | GBP |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| Balance | | 11,252,912 | 42,696,509 | 1,246,500 | (5,157,918) | 50,038,003 |
| at 1 | | | | | | |
| April | | | | | | |
| 2010 | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| Total | | - | - | - | 4,206,744 | 4,206,744 |
| comprehensive | | | | | | |
| income for | | | | | | |
| the period | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| Transactions | | | | | | |
| with owners, | | | | | | |
| recorded | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| Contributions, | | | | | | |
| redemptions | | | | | | |
| and | | | | | | |
| distributions | | | | | | |
| to | | | | | | |
| shareholders | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| · | | (938,602) | - | - | (2,400,574) | (3,339,176) |
| Cancellation | | | | | | |
| of shares | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| Total | | (938,602) | - | - | (2,405,574) | (3,339,176) |
| transaction | | | | | | |
| with owners | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| Balance | | 10,314,310 | 42,696,509 | 1,246,500 | (3,351,748) | 50,905,571 |
| at 30 | | | | | | |
| September | | | | | | |
| 2010 | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+-------------+-------------+
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | Share | Share | Capital | Other | Total |
| | | capital | premium | redemption | reserves | |
| | | | | reserve | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | GBP | GBP | GBP | GBP | GBP |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| Balance | | 11,888,325 | 42,696,509 | 1,246,500 | (16,066,313) | 39,765,021 |
| at 1 | | | | | | |
| April | | | | | | |
| 2009 | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| Total | | - | - | - | 12,238,319 | 12,238,319 |
| comprehensive | | | | | | |
| income for | | | | | | |
| the year | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| Transactions | | | | | | |
| with owners, | | | | | | |
| recorded | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| Contributions, | | | | | | |
| redemptions | | | | | | |
| and | | | | | | |
| distributions | | | | | | |
| to | | | | | | |
| shareholders | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| · | | (635,413) | - | - | (1,329,924) | (1,965,337) |
| Cancellation | | | | | | |
| of shares | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| Total | | (635,413) | - | - | (1,329,924) | (1,965,337) |
| transaction | | | | | | |
| with owners | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| Balance | | 11,252,912 | 42,696,509 | 1,246,500 | (5,157,918) | 50,038,003 |
| at 31 | | | | | | |
| March | | | | | | |
| 2010 | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
| | | | | | | |
+----------------+--------+------------+------------+------------+--------------+-------------+
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 September 2010, expressed in GBP sterling
+--------------+--------+-------------+-------------+-------------+
| | | Six | Six | |
| | | months | months | Year |
| | | ended | ended | ended |
+--------------+--------+-------------+-------------+-------------+
| | | 30 | 30 | 31 |
| | | September | September | March |
| | | 2010 | 2009 | 2010 |
+--------------+--------+-------------+-------------+-------------+
| | Notes | GBP | GBP | GBP |
+--------------+--------+-------------+-------------+-------------+
| | | | | |
+--------------+--------+-------------+-------------+-------------+
| Net | | 13,603,292 | | 156,185 |
| cash | 5 | | 5,945,068 | |
| inflow | | | | |
| from | | | | |
| operating | | | | |
| activities | | | | |
+--------------+--------+-------------+-------------+-------------+
| | | | | |
+--------------+--------+-------------+-------------+-------------+
| Financing | | | | |
| Activities | | | | |
+--------------+--------+-------------+-------------+-------------+
| Cancellation | | (3,339,176) | (1,368,782) | (1,965,337) |
| of shares | | | | |
+--------------+--------+-------------+-------------+-------------+
| Bank | | (1,116,352) | - | 1,116,352 |
| overdraft | | | | |
+--------------+--------+-------------+-------------+-------------+
| Cash | | (4,455,528) | (1,368,782) | (848,985) |
| flow | | | | |
| from | | | | |
| financing | | | | |
| activities | | | | |
+--------------+--------+-------------+-------------+-------------+
| | | | | |
+--------------+--------+-------------+-------------+-------------+
| Net | | 9,147,764 | | (692,800) |
| increase | | | 4,576,286 | |
| / | | | | |
| (decrease) | | | | |
| in cash | | | | |
| and cash | | | | |
| equivalents | | | | |
+--------------+--------+-------------+-------------+-------------+
| | | | | |
+--------------+--------+-------------+-------------+-------------+
| Cash | | 195,000 | | 906,097 |
| and | | | 906,097 | |
| cash | | | | |
| equivalents | | | | |
| at | | | | |
| beginning | | | | |
| of period / | | | | |
| year | | | | |
+--------------+--------+-------------+-------------+-------------+
| Exchange | | 626 | (12,492) | (18,297) |
| movements | | | | |
+--------------+--------+-------------+-------------+-------------+
| | | | | |
+--------------+--------+-------------+-------------+-------------+
| Cash | | 9,343,390 | | 195,000 |
| and | | | 5,469,891 | |
| cash | | | | |
| equivalents | | | | |
| at end of | | | | |
| period / | | | | |
| year | | | | |
+--------------+--------+-------------+-------------+-------------+
NOTES TO THE CONDENSED SET OF CONSOLIDATED FINANCIAL STATEMENTS
a) General
Oryx International Growth Fund limited (the "Company") was incorporated in
Guernsey on 2 December 1994 and commenced activities on 3 March 1995.
The Company is a Guernsey Authorised Closed-Ended Investment Scheme and is
subject to the Authorised Closed-Ended Investment Scheme Rules 2008.
The investment activities of the Company are managed by North Atlantic Value LLP
('the Investment Manager') and the administration of the Company is delegated to
BNP Paribas Fund Services (Guernsey) Limited ('the Administrator').
2. Accounting Policies
Basis of Preparation
The financial statements of the Company are prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by the European
Union and International Accounting Standards and Standing Interpretations
Committee interpretations approved by the International Accounting Standards
Committee ("IASC") that remain in effect, together with applicable legal and
regulatory requirements of Guernsey Law. The condensed set of financial
statements included in this half-yearly financial report are unaudited and have
been prepared in accordance with International Accounting Standard (IAS) 34,
Interim Financial Reporting. The same accounting policies, presentation and
methods of computation are followed in the condensed set of financial statements
as applied in the Company's latest annual audited financial statements.
The financial statements have been prepared on the historical cost basis except
for the inclusion at fair value of certain financial instruments. The principal
accounting policies are set out below. The preparation of financial statements
in conformity with International Financial Reporting Standards requires the
Company to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. It also requires
the Board of Directors to exercise its judgement in the process of applying the
Company's accounting policies.
Adoption of new standards
The following new standards came into force for periods commencing 1 April 2010.
IFRS 8 Operating Segments (revised April 2009)
IAS 1 Presentation of Financial Instruments (revised April 2009)
IAS 7 Statements of Cash Flows (revised April 2009)
IAS 32 Financial Instruments: Presentation (revised 2009)
IAS 36 Impairment of Assets (revised April 2009)
IAS 39 Financial Instruments: Recognition and measurement (revised April 2009)
The adoption of these standards did not have a material impact on the financial
statements of the Company.
The Directors believe that other pronouncements which are in issue but not yet
operative or adopted by the Company will not have a material impact on the
financial statements of the Company.
Going Concern
The Directors believe it is appropriate to adopt the going concern basis in
preparing the financial statements as, after due consideration, the Directors
consider that the Group has adequate resources to continue in operational
existence for the foreseeable future.
a) Income recognition
Dividend income is recognised when the right to receive income is established.
Usually this is the ex-dividend date for equity securities. Deposit interest is
accrued on a day-to-day basis. Loan interest is accounted for using the
effective interest method. All income is shown gross of any applicable
withholding tax.
b) Investments
Classification
All investments of the Company, together with its subsidiaries ('the Group'),
are designated into the financial assets at fair value through profit or loss
category. The investments are purchased mainly for their capital growth and the
portfolio is managed, and performance evaluated, on a fair value basis in
accordance with the Group's documented investment strategy. Therefore the
Directors consider that this is the most appropriate classification.
This category comprises financial instruments designated at fair value though
profit or loss upon initial recognition - these include financial assets that
are not held for trading purposes and which may be sold. These are principally
investments in listed and unlisted equities.
Measurement
Financial instruments are measured initially at fair value being the transaction
price. Subsequent to initial recognition, all instruments classified as fair
value through profit or loss are measured at fair value with changes in their
fair value recognised in the Statement of Comprehensive Income. Transaction
costs are separately disclosed in the Statement of Comprehensive Income.
Financial instruments are measured initially at fair value being the transaction
price. Subsequent to initial recognition on trade date, all instruments
classified as fair value through profit or loss are measured at fair value with
changes in their fair value recognised in the Statement of Comprehensive Income.
Transaction costs are separately disclosed in the Statement of Comprehensive
Income.
Listed investments have been valued at the bid market price ruling at the
Statement of Financial Position date. In the absence of the bid market price,
the closing price has been taken, or, in either case, if the market is closed on
the Statement of Financial Position date, the bid market or closing price on the
preceding business day.
Unlisted investments are valued in accordance with the International Private
Equity and Venture Capital Association (IPEVCA) guidelines. Their valuation
includes all factors that market participants would consider in setting a price.
The primary valuation techniques employed to value the unlisted investments are
earnings multiples, recent transactions and the net asset basis. Cost is
considered appropriate for early stage investments. The relevance of this
methodology can be eroded over time and in these cases the carrying values will
be adjusted to reflect fair value.
For certain of the Group's financial instruments, including cash and cash
equivalents, interest and dividends and interest receivable and amounts due to
and from broker, the carrying amounts approximate fair value due to their
immediate or short-term maturity.
Derecognition of financial assets occur when the rights to receive cash flows
from financial instruments expire or are transferred and substantially all of
the risks and rewards of ownership have been transferred.
Fair value measurement should be determined based on assumptions that market
participants would use in pricing an asset or liability. As a basis for
considering market participant assumptions, IFRS 7 establishes a fair value
hierarchy that gives the highest priority to unadjusted quoted prices in active
markets (Level 1) and lowest priority to unobservable inputs (Level 3). The
three levels of the value hierarchy are as follows.
Level 1: Inputs that reflect unadjusted quoted prices in active markets for
identical assets or liabilities that the Company has the ability to access at
the measurement date;
Level 2: Inputs reflect quoted prices of similar assets and liabilities in
active markets and quoted prices of identical assets and liabilities in markets
that are considered to be inactive, as well as inputs other than quoted prices
that are observable for the asset or liability either directly or indirectly;
and
Level 3: Inputs that are unobservable for the asset or liability and reflect the
Investment Manager's own assumptions in accordance with the accounting policies
disclosed within note 2 to the financial statements.
b) Other receivables
Other receivables do not carry any interest and are short term in nature and are
accordingly stated at their amortised cost as reduced by appropriate allowances
for impairment.
c) Cash and cash equivalents
Cash and cash equivalents consist of cash in hand and short term deposits in
banks with original maturities of less than three months.
d) Other accruals and payables
Other accruals and payables are not interest bearing and are stated at their
amortised cost.
e) Foreign currency translation
Items included in the Group's financial statements are measured using the
currency of the primary economic environment in which it operates (the
"functional currency"). This is the pound sterling which reflects the Group's
primary activity of investing in sterling securities. The Group's shares are
also issued in sterling.
Foreign currency assets and liabilities have been translated at the exchange
rates ruling at the Balance Sheet date. Transactions in foreign currency during
the period have been translated into pounds sterling at the spot exchange rate
in effect at the date of the transaction. Realised and unrealised gains and
losses on currency translation are recognised in the consolidated Statement of
Comprehensive Income.
g) Realised and unrealised gains and losses
Realised gains and losses arising on the disposal of investments are calculated
by reference to the cost attributable to those investments and the sales
proceeds, and are included in the consolidated Statement of Comprehensive
Income. Unrealised gains and losses arising on investments held at the
consolidated Statement of Financial Position date are also included in the
consolidated Statement of Comprehensive Income.
h) Financial liabilities
All bank loans and borrowings are initially recognised at cost, being the fair
value of the consideration received, less issue costs where applicable. After
initial recognition, all interest bearing loans and borrowings are subsequently
measured at amortised cost. Any difference between cost and redemption value
has been recognised in the consolidated Statement of Comprehensive Income over
the period of the borrowings on an effective interest basis.
Financial liabilities are derecognised from the consolidated Statement of
Financial Position only when the obligations are extinguished either through
discharge, cancellation or expiration.
i) Equity
Share Capital represents the nominal value of equity shares.
Share Premium represents the excess over nominal value of the fair value of
consideration received for equity shares, net of expenses of the share issue.
Share premium is debited for the excess of redemption price over par value of
shares.
Other Reserves and the Capital Redemption Reserve include all current and prior
results as disclosed in the consolidated Statement of Comprehensive Income.
Other Reserves also includes the excess over nominal value of the fair value of
consideration deducted on share buy-backs.
j) Expenses
Expenses are recognised in the consolidated Statement of Comprehensive Income
upon utilisation of the service or at the date they are incurred.
k) Consolidation
These consolidated financial statements comprise the financial statements of the
Company and its wholly owned subsidiary undertakings, Baltimore plc and American
Opportunity Trust PLC, both UK registered. Subsidiaries are those entities
controlled by the Company. Control exists when the Company has the power to
govern the financial and operating policies of an entity so as to obtain
benefits from its activities.
The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that
control ceases. The financial statements have been prepared using uniform
accounting policies for like transactions and other events in similar
circumstances. All intra-group balances and transactions are eliminated in full
in preparing the consolidated financial statements.
3. Share Capital and Share Premium
a) Authorised Share Capital
+----------------------+----------+----------+----+-+------------+-+------------+
| | | | | | Number | | GBP |
| | | | | | of | | |
| | | | | | Shares | | |
+----------------------+----------+----------+----+-+------------+-+------------+
| Authorised: | | | | | | | |
+----------------------+----------+----------+----+-+------------+-+------------+
| Ordinary shares of | | | | | 90,000,000 | | 45,000,000 |
| 50p each | | | | | | | |
+----------------------+----------+----------+----+-+------------+-+------------+
| | | | | | | | |
+----------------------+----------+----------+----+-+------------+-+------------+
b) Ordinary Shares - 1 April 2010 to 30 September 2010
+----------------------+----------+-------------+----------+------------+----------+------------+
| | | | | | | |
+----------------------+----------+-------------+----------+------------+----------+------------+
| Ordinary Shares of | | Number | | Share | | Share |
| 50p each and | | of | | Capital | | Premium |
| Management Shares of | | Shares | | GBP | | GBP |
| 50p each | | | | | | |
+----------------------+----------+-------------+----------+------------+----------+------------+
| | | 22,505,825 | | 11,252,912 | | 42,696,509 |
| At 1 April 2010 | | | | | | |
+----------------------+----------+-------------+----------+------------+----------+------------+
| Share buy back | | (1,877,204) | | (938,602) | | - |
+----------------------+----------+-------------+----------+------------+----------+------------+
| At 30 September 2010 | | 20,628,621 | | 10,314,310 | | 42,696,509 |
+----------------------+----------+-------------+----------+------------+----------+------------+
During June 2010, the Company repurchased for cancellation 1,482,971 shares at
an average price of 172p per Share. A further 394,233 shares were repurchased
for cancellation at an average price of 200p per share in August 2010.
4. Other reserves
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| | | 31 March | | Movement | | 30 |
| | | 2010 | | | | September |
| | | GBP | | GBP | | 2010 |
| | | | | | | GBP |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| Net investment income | | 2,332,432 | | 470,375 | | 2,802,807 |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| Realised gain on investments | | 22,491,290 | | (2,339,640) | | 20,151,650 |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| Loss on foreign currency | | (902,669) | | 626 | | (902,043) |
| transactions | | | | | | |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| Unrealised loss on | | (22,224,694) | | 6,075,383 | | (16,149,311) |
| revaluation of investments | | | | | | |
| held | | | | | | |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| Repurchase of ordinary shares | | (5,525,387) | | (2,400,574) | | (7,925,961) |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| Repurchase of warrants | | (8,179) | | - | | (8,179) |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| Discount on repurchase of | | (1,320,711) | | - | | (1,320,711) |
| Convertible Loan Stock | | | | | | |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
| | | (5,157,918) | | 1,806,170 | | (3,351,748) |
+-------------------------------+----------+--------------+----------+-------------+----------+--------------+
5. Cash Flows from Operating Activities
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | Six | | Six | | |
| | | months | | months | | Year |
| | | ended | | ended | | ended |
| | | 30 | | 30 | | 31 |
| | | September | | September | | March |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | 2010 | | 2009 | | 2010 |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | GBP | | GBP | | GBP |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| Net income for the period / | | 4,206,744 | | 10,853,666 | | 12,238,319 |
| year | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| Realised losses on | | 2,339,640 | | 1,034,886 | | 1,480,675 |
| investments | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| Movement in unrealised loss | | | | | | (13,432,513) |
| on revaluation of investments | | (6,075,383) | | (11,375,113) | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| Loss / (gain) on foreign | | (626) | | 12,492 | | 18,297 |
| currency translation | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | (3,736,369) | | (10,327,735) | | (11,933,541) |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| Purchase of investments | | (4,553,845) | | (9,750,871) | | (26,543,064) |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| Proceeds from sale of | | 17,747,923 | | 14,799,391 | | 25,873,952 |
| investments | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | 13,194,078 | | 5,048,520 | | (669,112) |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | 145,646 |
| Decrease in dividends and | | 2,005 | | 111,319 | | |
| interest receivable | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| Decrease in other receivables | | 21,585 | | 280,053 | | 266,532 |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| (Decrease)/increase in | | | | | | 108,341 |
| creditors and accrued | | (84,751) | | (20,755) | | |
| expenses | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | (61,161) | | 370,617 | | 520,519 |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
| | | 13,603,292 | | 5,945,068 | | 156,185 |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
| | | | | | | |
+-------------------------------+----------+-------------+----------+--------------+----------+---------------+
6. Reconciliation of Net Asset Value to Published Net Asset Value
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| | | 30 | | 30 | | 31 | |
| | | September | | September | | March | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| | | 2010 | | 2009 | | 2010 | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| | | GBP | GBP | GBP | GBP | GBP | GBP |
| Ordinary Shares | | | per | | per | | per |
| | | | share | | share | | share |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| Published Net | | 52,083,568 | 2.52 | 50,460,569 | 2.21 | 51,262,157 | 2.27 |
| Asset Value | | | | | | | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| Management Shares | | - | - | 1 | (0.00) | - | - |
| in issue | | | | | | | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| Unrealised loss | | | (0.05) | | | (1,173,154) | (0.05) |
| on revaluation of | | | | | | | |
| investments at | | | | | | | |
| bid / mid price | | (1,167,997) | | (1,195,665) | (0.05) | | |
| (ref note below) | | | | | | | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| Reduction in | | | (0.00) | | | (51,000) | (0.00) |
| value of | | (10,000) | | (15,000) | (0.00) | | |
| Subsidiary | | | | | | | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| Net Asset Value | | | 2.47 | | | 50,038,003 | 2.22 |
| attributable to | | 50,905,571 | | 49,249,905 | 2.16 | | |
| shareholders | | | | | | | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
| | | | | | | | |
+-------------------+----------+-------------+--------+-------------+--------+-------------+--------+
Note: In accordance with International Financial Reporting Standards, as adopted
by the European Union, the Group's long investments have been valued at bid
price in the Financial Statements. However, in accordance with the Group's
principal documents the Net Asset Value reported each month reflects the
investments being valued at the closing, last or mid-market (as the Directors in
all circumstances consider appropriate) price as notified to the Group on the
valuation day by a member of the stock exchange concerned. Certain investments
remain at fair value as determined in good faith by the Directors.
7. Earnings per Share and Net Asset Value per Share
The calculation of basic earnings per share for the Ordinary Share is based on a
profit of GBP4,206,744 (30 September 2009 - GBP10,853,666, 31 March 2010 -
GBP12,238,319) and the weighted average number of shares in issue during the
period of 21,556,871 shares (30 September 2009 - 23,112,553 shares, 31 March
2010 - 22,855,527 shares). In accordance with IAS 33 - Earnings per Share, the
diluted earnings per share is also disclosed. At 30 September 2010 there was no
difference in the diluted earnings per share calculation for the Ordinary
Shares.
The calculation of Net Asset Value per Ordinary Share is based on a Net Asset
Value of GBP50,905,571 (30 September 2009 - GBP49,249,905, 31 March 2010 -
GBP50,038,003) and the number of shares in issue at the period end of 20,628,621
shares (30 September 2009 - 22,845,825 shares, 31 March 2010 - 22,505,825
shares). The diluted Net Asset Value per share is also disclosed. At 30
September 2010 there was no difference in the diluted Net Asset Value per share
calculation for the Ordinary Shares.
8. Related Parties
The Manager and Investment Adviser are considered to be related parties. The
fees paid are included in the Consolidated Statement of Comprehensive Income. At
30 September 2010 GBP92,436 included in creditors and accrued expenses was
payable to the Investment Adviser.
The Directors are also considered to be related parties and their fees are
disclosed in the Consolidated Statement of Comprehensive Income. At 30
September 2010 GBP33,523 included in creditors and accrued expenses was payable
to the Directors.
There were no transactions between the Company and its subsidiaries in the
period.
Enquiries:
Sara Bourne
BNP Paribas Fund Services (Guernsey) Limited
Tel: 01481 750858
Hugh Field
Arbuthnot Securities Limited
Tel: 020 7012 2000
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGGMPGUPUGRG
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