TIDMVIN
RNS Number : 0232S
Value and Income Trust plc
01 November 2019
VALUE AND INCOME TRUST PLC
Unaudited Half-Yearly Financial Report
For The Six Months Ended 30 September 2019
Summary
30 September 2019 31 March 2019 30 September 2018
Group net asset value
per share
(valuing debt at market) 316.73p 312.16p 330.46p
========================= ================= ===================== =================
Group net asset value
per share
(valuing debt at par) 337.71p 332.45p 349.70p
========================= ================= ===================== =================
Share price (mid) 249.00p 251.00p 265.50p
========================= ================= ===================== =================
Dividend per share 5.8p 11.8p 5.6p
(first and second (total) (first and second
interim) interim)
========================= ================= ===================== =================
Value and Income Trust PLC ('VIT') is a specialist investment
trust whose shares are listed on the London Stock Exchange. VIT
invests in higher yielding, less fashionable areas of the UK
commercial property and equity markets, particularly in medium and
smaller sized companies. VIT aims for long-term real growth in
dividends and capital values without undue risk.
Over the six months ended 30 September 2019, VIT's share price
fell by 0.8% while the net asset value per share, valuing debt at
par, increased by 1.6%. The FTSE All-Share Index rose by 2.1% over
the half year. VIT's property portfolio was revalued independently
at 30 September 2019.
The Company announced on 11 September 2019 the dates of the
quarterly dividends for the year to 31 March 2020. The first
quarterly dividend of 2.9p per share was paid on 25 October 2019 to
all shareholders on the register on 27 September 2019. The second
quarterly dividend of 2.9p per share will be paid on 31 January
2020 to those shareholders on the register on 3 January 2020. The
ex-dividend date will be 2 January 2020.
The third quarterly dividend of 2.9p per share will be paid on
24 April 2020 to those shareholders on the register on 27 March
2020. The ex-dividend date will be 26 March 2020. The Board will
announce in due course the proposed fourth and final payment for
the year which, subject to shareholder approval, will be paid on or
around 31 July 2020.
SUMMARY OF PORTFOLIO
30 September 2019 31 March 2019 30 September 2018
GBPm % GBPm % GBPm %
UK Equities 129.5 64 128.7 64 135.7 65
=================== =========== ====== ========= ==== =========== ======
UK Property 71.3 35 68.8 34 67.9 32
=================== =========== ====== ========= ==== =========== ======
Net current assets 2.9 1 3.8 2 5.6 3
=================== =========== ====== ========= ==== =========== ======
203.7 100 201.3 100 209.2 100
=================== =========== ====== ========= ==== =========== ======
ENQUIRIES: Patrick Harrington
OLIM Limited, Investment Manager, Equities
Tel: 020 7367 5660
Website: www.olim.co.uk
Louise Cleary
OLIM Property Limited, Investment Manager,
Property
Tel: 020 7647 6701
Website: www.olimproperty.co.uk
Investment Managers' Reports
UK Equities
The Market
Over the six month period to the end of September 2019, the UK
stock market, as measured by the FTSE All-Share Index, rose by 2.1%
and, including dividends, the total return was 4.5%. The market has
traded within a well-defined range over the first half of VIT's
year. It rose fairly steadily in the early months before peaking in
late July. Since then the market has fallen back as economic growth
and Brexit concerns have come to the fore, although the share
prices had rebounded somewhat from their August low point by the
end of September.
Within the UK market, large companies, measured by the FTSE 100
Index, rose by 1.8%, whilst the more domestically focussed FTSE 250
Index of mid-sized companies rose by 4.3%, driven in part by a
number of high profile takeover bids from overseas buyers. The FTSE
World Index rose by 3.1%, measured in dollars. Once again, world
markets were led by the US, where the S&P 500 index rose by
5.0%, and by the German market, which rose by 7.8% in local
currency over the six month period. Elsewhere in the world market
performances were more subdued, with a fall of 5.0% recorded on
average in Asian markets, which were unsettled by the unrest in
Hong Kong, and a 4.5% fall in the FTSE All Emerging All-Cap
Index.
The modest rise in share prices in September was triggered by
coincident monetary easing by many of the world's central banks. In
particular, the US Federal Reserve cut interest rates twice over
the course of the summer and the European Central Bank (ECB)
resumed its bond buying programme. Falling interest rates prompted
a strong rally in bonds and the benchmark US ten year bond yield
closed September at just 1.7%, over seventy basis points lower than
at the end of March and in the same period ten year UK gilt yields
fell by fifty basis points to 0.5%, well below the prevailing rate
of UK inflation. In the currency markets the pound weakened against
most currencies as the risk of a "no-deal" Brexit was perceived to
have increased, despite parliamentary efforts to block this
outcome. During the period the pound fell by 5.7% against the
dollar and 3.0% against the Euro to finish the period at GBP1:$1.23
and GBP1:EUR1.13. Commodity prices were generally weak as economic
growth expectations declined; copper and oil both fell by over 10%,
although oil briefly rallied after the attacks on the Saudi Arabian
oil facilities.
Performance
VIT's equity portfolio modestly outperformed over the half year
with a total return of +4.8% compared to the FTSE All Share Index
Return of +4.5%. This was despite a difficult background for
high-yielding shares; the FTSE Higher Yield Index underperformed
the FTSE All Share Index by around 4% in capital terms in the
period. In broad terms, asset allocation between sectors was the
main positive, whilst stock selection was a small negative
influence. The main positive sector influences were the underweight
positions in Tobacco and Oil Producers and the overweight in
Personal Goods, although these were somewhat offset by the
underweight position in Pharmaceuticals. In stock selection terms
mid-caps were generally strong with good performances coming from
Beazley (+21%), Restaurant Group (+21%), Marston's (+20%) and
Babcock International (+13%). Vodafone (+16%) also outperformed
after announcing plans to dispose of its tower assets. These good
performances were partially offset by weakness in some of the
Trust's financial holdings including Lloyds Banking Group (-13%)
and Legal & General (-10%). BT (-20%) and Cineworld (-22%) were
also weak.
VIT's Portfolio
We continued to make a relatively significant level of changes
to the portfolio in the half year with the aim of improving the
overall yield and growth prospects of the investments. For new
investments, particular attention is being paid to the companies'
underlying growth, their balance sheet strength and their level of
cash generation. During the half year we made complete sales of
Johnson Matthey, where we have become concerned about the longer
term outlook for the company's diesel engine related activities,
and Centrica, which has faced increasingly difficult markets with
the result that it cut its dividend (announced well after the
disposal was made). We also took profits in a number of stocks that
are now low yielding after having performed well including Beazley,
Croda International, Spectris and Unilever.
Using the monies raised we started new holdings in PayPoint and
FDM Group. PayPoint is a payments and transaction services business
focussed on convenience retailers whilst FDM is an international IT
consultancy business. Both companies have attractive cash
generation characteristics, generate high returns on capital
employed and have strong balance sheets. Whilst FDM has the
stronger dividend and earnings growth record, PayPoint is
supplementing its ordinary dividend with regular special payments.
We also added to existing holdings including Lloyds Banking Group,
ITV, Royal Dutch Shell, DS Smith and Phoenix Group, all on an
attractive yield basis.
In total, GBP10.7m of sales were made against GBP9.4m of
purchases meaning we made net sales of approximately GBP1.3m and we
will be looking to invest this small effective cash balance in due
course.
Outlook
Globally, economic growth is slowing, particularly in Europe.
President Trump's trade policies have raised the risks in the world
economy, with particular anxiety about the impact of his proposed
tariffs on Chinese and European goods, though so far these have not
been too extensive. GDP growth in America has moderated to an
annual rate of 2% as the impact of the 2018 tax cuts has
evaporated, but the Federal Reserve has reacted by cutting interest
rates and signalled that further cuts are likely and that it will
resume Quantitative Easing (QE). The ECB has also restarted its
programme of bond buying in an effort to boost flagging Eurozone
growth. Despite all the uncertainty surrounding Brexit, the UK
economy has continued to grow at a reasonable pace. Whilst the
reported annual growth to the end of June of 1.3% is below the
long-term average it shows the UK economy is some way from a
recession.
The labour markets in both the USA and the UK have continued to
tighten, with unemployment in both areas at the lowest levels for
more than 40 years. This has led to a rebound in the rate of wage
growth in the UK, which has now reached 4%. This is well ahead of
inflation and should provide significant support to consumer
spending. Despite all the difficulties and threats to world
stability, forecasts for global growth in 2019 remain at around 3%
with a slight acceleration expected in 2020. In the UK, economic
growth is slowing but not as fast as many economists have
predicted. The ongoing Brexit saga is clearly affecting confidence
in some areas and current UK growth expectations for 2019 as a
whole remain fairly subdued at 1.3%. The Bank of England has not
changed interest rates for over a year after increasing them once
in 2017 and once in 2018. Given the cuts elsewhere in the world,
pressure is clearly growing on the Bank to reduce rates, especially
given the uncertainty surrounding Brexit. Unfortunately, Brexit
remains the predominant topic of politics and the UK Parliament is
currently paralysed as a result, although the forthcoming General
Election may resolve this. At the time of writing, the Prime
Minister has sought an extension to the Article 50 process which
has been granted and which will delay the country's departure once
more. This may be advantageous from an economic perspective, but
the General Election adds new uncertainties. The likelihood of a
hard-left Labour administration appears to be diminishing, in part
due to the Labour Party's equivocation over Brexit.
The valuation of the UK equity market at the end of VIT's half
year of 12.7x earnings for the current 2019 year, falling to 11.8x
for 2020 (source: Bloomberg) looks attractive and is below the
long-term average. Furthermore, the average yield of 4.2% looks
compelling, especially when compared with gilt yields and cash
returns, which remain well below the current rate of inflation. To
the overseas investor the UK looks good value compared to overseas
markets, with the pound trading at a severely reduced exchange rate
since the EU Referendum in June 2016. As a consequence of this we
have seen a number of bids for UK companies including the recently
announced takeover of Greene King by a well-known Hong Kong based
investor. Until the shape of Brexit is determined, much uncertainly
will overhang our market but we do believe that investors will take
advantage of the low valuation once the future of our relationship
with Europe has been resolved.
Patrick Harrington
OLIM Limited
1 November 2019
Investment Managers' Reports
Property
The Market
UK commercial property capital values turned down a year ago and
are continuing to slip on unprecedently low transaction volumes -
barely two-thirds of their long-term averages. Most UK
institutional property investors have looked like rabbits caught in
the headlights of an oncoming Brexit train. Retail, office and
industrial investment turnover so far in 2019 has been well down,
with only the newer alternatives sector bucking the trend, with
transactions actually ahead of 2018 levels.
Valuers have been surprisingly slow to address weakness in high
street shops, shopping centres and retail warehouses. Retail
capital and rental values started falling two years ago but
valuations are still well behind the curve on rental value falls,
which are now accelerating and dragging capital values down
further.
The MSCI Quarterly Property Index, the most representative
recent measure of the performance of institutional investment
property portfolios, showed a total return of only 0.8% over the
six months to end September and 1.3% for calendar 2019 to date.
UK Commercial Property - Average Annual
% Growth Rates to September 2019
3 Months 6 Months 1 Year 3 Years 5 Years 10 Years
Capital Values -2.8 -3.4 -2.2 +1.7 +2.7 +3.6
============================= ======== ======== ====== ======= ======= ========
Rental Values +0.2 +0.4 +0.1 +1.2 +2.0 +1.0
============================= ======== ======== ====== ======= ======= ========
Total Returns +2.0 +1.6 +3.1 +6.0 +8.4 +10.1
============================= ======== ======== ====== ======= ======= ========
Source: MSCI Quarterly Index
- Annualised
A flight to property safety continues, with a widening gulf
between safe, long-let property and the rest of the market. There
are almost no UK institutional buyers at any price now for retail
warehouses, shopping centres or high street shops unless they
present real redevelopment opportunities for alternative use, and
potential hedge fund or opportunistic buyers are still only window
shopping. Company Voluntary Arrangements (CVAs), even at profitable
retail groups, have hammered values across the board and there will
be many more retail company failures and shops closing over the
next few years. Last year there were net closures of 7,500 retail
units in Great Britain, against net openings of 3,000 five years
before and the stream of CVAs and bankruptcies is turning into a
tsunami. On-line's share of non-food retail spending is forecast to
rise from 19% today to 34% in 5 years' time and over 50% in 8-10
years' time, and retail property investment volumes are down by
two-thirds since 2016. Even the strongest retailers are now
demanding rent reductions on existing leases from landlords who are
conceding deep rent cuts in CVAs to their competitors trading
nearby.
Only one retail sector is bucking the trend - supermarkets -
where the high quality of income from the strong main operators on
long, often index-linked leases, is proving attractive to investors
fleeing the non-food retail storm. Even here however, over-rented
and over-sized supermarkets are falling in value.
Office values in general edged ahead in 2018, with rental growth
in the big provincial cities and a handful of trophy purchases of
long-let large buildings, mainly by Far Eastern buyers, propping up
the London office market despite downward pressure on rents. But
Brexit uncertainty has now frightened off some overseas buyers and
made many large as well as smaller companies take serviced office
space rather than sign long leases. WeWork (a serviced office
operator where their sub-tenants can leave when they like) have
signed long leases on over 4 million square feet, about a tenth of
all new Central London office lettings, over the past 4 years. Over
GBP300 million a year of WeWork London office rental income is at
risk if WeWork run out of cash following their failed float. London
office capital and rental values will fall over the next year.
Provincial office values should be more resilient, underpinned by
some rental growth.
Warehouse/industrial property has been the star performer over
the past two years. The structural shift from bricks and mortar to
online retailing has driven up rents both for large distribution
depots near motorway junctions and smaller warehouse units for
"last mile" local deliveries. But investor demand has forced
investment valuation yields for industrial/warehouse property down
below retail and office yields for the first time since reliable
yield records began forty years ago - and, more seriously, to a
yield level even lower than at the property market peak in 2007.
Any further growth in industrial/warehouse values in 2019/20 will
therefore only be in those areas where rising rents more than
offset adverse valuation yield movements.
Most other types of investment property now (usually called
"alternatives" in the property market), such as hotels, pubs,
cinemas, bowling, bingo, petrol filling stations/ convenience
stores, healthcare and educational property, should continue to
outperform conventional commercial investment property over the
next few years, as they have in the recent past. In these
alternative sectors, unlike traditional retailing, structural
change can benefit multiple operators. In the pub sector, for
example, the 39,000 pubs still trading in 2018 had revenue 6%
higher in real terms and employed 6% more people than the 50,000
pubs trading in 2008, with the biggest increases in pubs with over
10 employees.
The twin keys to outperformance in most alternative property
types remains generally strong national operators, often building a
dominant position (as Stonegate will have with 5,000 pubs after its
takeover of EI Group, like Cineworld/Odeon/Vue in cinemas and
Hollywood Bowl/Tenpin in bowling) and long, index-linked leases
signed because conventional open market rent reviews have been
impractical. Investments with such leases are increasingly sought
after by many institutional investors who feel underweight in these
alternative sectors.
These contrasting trends in UK commercial property may produce a
fall in average capital values around 4%, (broadly offset by the
income yield), giving a just positive total return for the MSCI
Quarterly and Annual Indices over 2019 as a whole. Within those
averages, capital values of retail property (except supermarkets),
may be down by between 10% and 15%. Many shops and retail warehouse
units are only re-lettable well below current rent levels as
tenants fail and leases expire. Many traditional shopping centres
are obsolete in 21st century Britain and some high streets and
retail warehouse parks are clearly heading the same way. The unfair
business rates burden, with painfully slow phasing of the downward
adjustment after each revaluation of the rates paid, is simply
crippling bricks and mortar retailing against the internet.
Comparative Yields - End December
(Except 2019 End September)
2019 2018 2017 2016 2014 2011 2008 2006
Property (Equivalent Yield) 5.5 5.4 5.5 5.7 5.9 6.8 8.1 5.4
Long Gilts Conventional 0.6 1.5 1.4 1.5 2.0 2.5 3.7 4.6
=========================================================== ===== ===== ===== ===== ===== ===== =====
Index Linked -2.5 -1.8 -1.8 -1.8 -0.8 -0.2 0.8 1.1
=========================================================== ===== ===== ===== ===== ===== ===== =====
UK Equities 4.2 4.5 3.6 3.5 3.4 3.5 4.5 2.9
=========================================================== ===== ===== ===== ===== ===== ===== =====
R.P.I
(Annual Rate) 2.4 3.2 4.1 2.5 2.0 4.8 0.9 4.4
=========================================================== ===== ===== ===== ===== ===== ===== =====
Property less Conventional
Yield Gaps: Gilts 4.9 3.9 4.1 4.2 3.9 4.3 4.4 0.8
============ ===================================== ====== ===== ===== ===== ===== ===== ===== =====
less Index Linked Gilts 8.0 7.2 7.3 7.5 6.7 7.0 7.3 4.4
================================================== ====== ===== ===== ===== ===== ===== ===== =====
less Equities 1.3 0.9 1.9 2.2 2.5 3.3 3.6 2.5
================================================== ====== ===== ===== ===== ===== ===== ===== =====
Source: MSCI and ONS
Any forecast for the UK economy in 2019 and beyond continues to
hang heavily on Brexit, which is by definition uncharted political
and constitutional territory.
Economic growth in 2019 may repeat the disappointment of 2018 at
around 1.3%. Business investment has fallen for eight of the last
nine quarters, with business sentiment indicators ever weaker, and
services, construction and manufacturing flat, after allowing for
precautionary stock-building in March which has since unwound.
Average earnings are now clearly growing faster than prices but
retail spending is still under serious pressure as consumers have
stopped running up debt, especially for big ticket purchases, and
remain generally cautious and price-sensitive. Short-term interest
rates are unlikely to rise further for the foreseeable future, and
long-term rates have fallen further, in line with overseas bond
markets, despite the danger of a high-spending, left-wing Labour
government.
The outlook for growth in most developed economies is
deteriorating, with political turmoil in the United States and
trade wars with China, and trade disputes with Europe. Rising
tension in the Middle East could also affect oil supplies.
Partly because of Brexit uncertainty and most UK institutions'
reluctance to invest, UK commercial property now offers record high
yield margins of 4.9 points over UK conventional gilts and no less
than 8 points over UK index-linked gilts. So long as tenants can
pay their rent, these bargain basement yields offer an
exceptionally attractive hunting ground for investors buying long,
preferably index-linked income secured on strong tenants in
well-specified buildings in prosperous locations. The price premium
institutional investors are prepared to pay for that security
against average or riskier commercial property has been growing
since the Referendum in 2016. Once they regain their nerve and
start buying again after 12 December, safe property will outperform
even more as open market rental growth evaporates. Carefully chosen
low risk indexed property is also overwhelmingly likely to
outperform both conventional and index-linked bonds over the short,
medium and long term from today's yields.
VIT's Portfolio
VIT's property portfolio is independently valued by Savills at
the end of March and September each year. The latest valuation
total was GBP71,350,000 as at 30 September 2019.
Since the end of March, the sales of three properties have
completed, a short-let industrial in Luton, a high street
supermarket in Sudbury and a shop in Lymington for GBP6,575,000 at
a yield of 7.2% net of sale costs. This was 3.5% above Savills'
March valuation total with a weighted average unexpired lease term
length of 7 years. There were four purchases over the last six
months for GBP8,800,000 at an initial yield of 6.6% net of
acquisition costs. Three within the industrial sector at Aberdeen,
Thetford and Thirsk and a bowling alley in Doncaster, all having
index-related leases and a long weighted average unexpired lease
length of 21 years (14 years if a break option is exercised). These
four have just been valued at end-September at 5.2% above their
total purchase price excluding costs and in-line including
costs.
Over the six months, the capital value of the existing portfolio
declined by 0.6% and rental income rose by 0.9% (due to 6 rent
reviews). The portfolio gave a total return of 3.0% including the
profitable sales and purchases, against 0.8% on the MSCI (formerly
IPD) Index of commercial property. Four properties rose in value,
four declined and fifteen were unchanged. The best performing
sectors within the portfolio were the Industrials, a petrol filling
station and the caravan park. There is now only one shop remaining
in the portfolio (compared to 23 five years ago). The running yield
on valuation was 6.4% at end September (MSCI: 4.8%) against 6.4% at
the end of March. There are no empty properties, against an MSCI
void rate of 7.5%. All 27 properties and 29 tenancies are let on
full repairing and insuring leases with upward only rent reviews
and a weighted average unexpired lease length of 17 years (15 years
if the tenants' break options are exercised). The rental income now
has 67.8% with R.P.I.-linked increases (32.6% with annual reviews
and 35.2% five yearly) and a further 15.7% has fixed increases
(6.3% with annual reviews and 9.4% five yearly). The 83.5%
index-related share of rental income is up from 79% at end March
and 39% five years ago. Our objective is to have a high exposure to
those sectors of the market that will outperform and to minimise
exposure to those sectors that could underperform due to market
changes throughout the property market cycle. Every property,
tenant and sector is reviewed regularly to provide a long term
growing income stream from strong tenants as well as capital
growth.
VIT's property portfolio is partly funded from three fixed rate
loans - GBP15 million of VIT 11% Debenture Stock repayable in 2021
and GBP35 million repayable in 2026, comprising GBP20m of historic
9 3/8% Debenture Stock and a GBP15 million bank loan drawn down in
mid-2016 at an average fixed rate of 4.4%. Because the Debenture
Stocks were issued at a premium, our effective average annual
interest cost is 7.5% compared to the 13% p.a. long-term total
return on VIT's properties, and 9% on the IPD Index.
Louise Cleary
OLIM Property Limited
1 November 2019
Interim Board Report
Management and Administration of VIT
Value and Income Services Limited (VIS), a wholly owned
subsidiary of the Company, is the Company's Alternative Investment
Fund Manager (AIFM). As AIFM, VIS has responsibility for the
overall portfolio management and risk management of the assets of
the Company. VIS has delegated its portfolio management
responsibilities for the equity portfolio to OLIM Limited (OLIM)
and for the property portfolio to OLIM Property Limited (OLIMP)
(collectively the Investment Managers). The delegation by VIS of
its portfolio management responsibilities is in accordance with the
delegation requirements of the Alternative Investment Fund Managers
Directive (AIFMD). The Investment Managers remain subject to the
supervision and direction of VIS. The Investment Managers are
responsible to VIS and ultimately to the Company in regard to the
management of the investment of the assets of the Company in
accordance with the Company's investment objectives and policies.
VIS has a risk committee which reviews the effectiveness of the
Company's internal controls and risk management systems and
procedures and identifies, measures, manages and monitors the risks
identified as affecting the Company's business.
BNP Paribas Securities Services is the Company's Depositary and
oversees the Company's custody and cash arrangements.
Principal Risks and Uncertainties
The Board carries out a regular review and robust assessment of
the principal risks facing the Group including those that would
threaten its business model, future performance, solvency or
liquidity. These principal risks and uncertainties are summarised
below and are considered equally applicable to the second half of
the financial year as for the period under review.
-- Market risk: The fair value of, or future cash flows from, a
financial instrument held by the Group may fluctuate because of
changes in market prices. This market risk comprises three elements
- price risk, interest rate risk and currency risk.
Price risk: Changes in market prices (other than those arising
from interest rate or currency risk) may affect the value of the
Group's investments. It is the Board's policy to hold an
appropriate spread of investments in the portfolio in order to
reduce the risk arising from factors specific to a particular
sector. For equities, asset allocation and stock selection both act
to reduce market risk. The Investment Managers actively monitor
market prices throughout the year and report to VIS and to the
Board, which meet regularly in order to review investment strategy.
The equity investments held by the Group are listed on the London
Stock Exchange and all investment properties held by the Group are
commercial properties located in the UK with long, strong income
streams.
Interest rate risk: Interest rate movements may affect the fair
value of the investments in property and 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 and borrowing
decisions. The Board imposes borrowing limits to ensure that
gearing levels are appropriate to market conditions and reviews
these on a regular basis. Current borrowings comprise debenture
stocks and the ten year secured term loan, providing secure
long-term funding. It is the Board's policy to maintain a gearing
level, measured on the most stringent basis of calculation after
netting off cash equivalents, of between 25% and 40%.
Currency risk: A small proportion of the Group's investment
portfolio is invested in securities whose fair value and dividend
stream are affected by movements in foreign exchange rates. It is
not the Board's policy to hedge this risk.
-- Liquidity risk: This is the risk that the Group will
encounter difficulty in meeting obligations associated with
financial liabilities. The Group's assets comprise readily
realisable securities which can be sold to meet commitments, if
required, and investment properties which, by their nature, are
less readily realisable.
-- Credit risk: This is the failure of a counterparty to a
transaction to discharge its obligations under that transaction
that could result in the Group suffering a loss. The risk is not
significant and is managed as follows:
- investment transactions are carried out with a large number of
brokers, whose credit-standing is reviewed periodically by OLIM
(which report to VIS) and limits are set on the amount that may be
due from any one broker.
- the risk of counterparty exposure due to failed trades causing
a loss to the Group is mitigated by the review of failed trade
reports on a daily basis. In addition, a stock reconciliation to
third party administrators' records is performed on a daily basis
to ensure that discrepancies are picked up on a timely basis. VIS
carries out periodic reviews of the Depositary's operations and
reports its findings to the Company. This review also includes
checks on the maintenance and security of investments held.
- cash is held only with reputable banks with high quality
external credit ratings which are monitored on a regular basis.
-- Property risk: The Group's commercial property portfolio is
subject to both market and specific property risk. Since the UK
commercial property market has been markedly cyclical for many
years, it is prudent to expect that to continue. The price and
availability of credit, real economic growth and the constraints on
the development of new property are the main influences on the
property investment market. Against that background, the specific
risks to the income from the portfolio are tenants being unable to
pay their rents and other charges, or leaving their properties at
the end of their leases. All leases are on full repairing and
insuring terms, with upward only rent reviews.
-- Political risk: The full political, economic and legal
consequences of the EU Referendum result to leave the European
Union are not yet known.
Additional risks and uncertainties include:
-- Discount volatility: The Company's shares may trade at a
price which represents a discount to its underlying net asset
value.
-- Regulatory risk: The Group operates in a complex regulatory
environment and therefore faces a number of regulatory risks. A
breach of Section 1158 of the Corporation Tax Act 2010 would result
in the Company being subject to capital gains tax on portfolio
investments. Breaches of other regulations, including but not
limited to, the Companies Act 2006, the FCA Listing Rules or the
FCA Disclosure, Guidance and Transparency Rules, the Market Abuse
Regulation, the Foreign Account Tax Compliance Act, the Common
Reporting Standard, the Packaged Retail and Insurance-based
Investment Products (PRIIPs) Regulation, the Second Markets in
Financial Instruments Directive (MiFID II), and the General Data
Protection Regulation (GDPR), could lead to a number of detrimental
outcomes and reputational damage. Breaches of controls by service
providers to the Company could also lead to reputational damage or
loss. The Audit and Management Engagement Committee monitors
compliance with regulations by reviewing internal control reports
from the Administrator and from the Investment Managers.
Statement of Directors' Responsibilities
The Directors confirm that to the best of their knowledge:
-- the condensed set of Financial Statements within the
Half-Yearly Financial Report has been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting';
and
-- the Interim Board Report includes a true and fair review of
the information required by 4.2.7R and 4.2.8R of the FCA's
Disclosure, Guidance and Transparency Rules.
For and on behalf of the Board of Value and Income Trust PLC
James Ferguson
Chairman
1 November 2019
Group Statement of Financial Position
As at 30 September 2019
As at As at As at
30 September 2019 31 March 2019 30 September 2018
Notes (Unaudited) (Audited) (Unaudited)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
NON CURRENT ASSETS
Investments held at
fair value through profit
or loss 129,484 128,706 135,706
Investment properties 71,350 68,800 67,850
--------------------- ------------------ ------------------
8 200,834 197,506 203,556
Deferred tax asset 345 389 248
--------------------- ------------------ ------------------
201,179 197,895 203,804
CURRENT ASSETS
Cash and cash equivalents 4,584 4,338 6,043
Receivables 492 907 717
--------------------- ------------------ ------------------
5,076 5,245 6,760
--------------------- ------------------ ------------------
TOTAL ASSETS 206,255 203,140 210,564
CURRENT LIABILITIES
Payables (2,510) (1,794) (1,371)
--------------------- ------------------ ------------------
TOTAL ASSETS LESS CURRENT
LIABILITIES 203,745 201,346 209,193
NON-CURRENT LIABILITIES
Borrowings (49,920) (49,913) (49,905)
--------------------- ------------------ ------------------
NET ASSETS 153,825 151,433 159,288
--------------------- ------------------ ------------------
EQUITY ATTRIBUTABLE
TO EQUITY SHAREHOLDERS
Called up share capital 4,555 4,555 4,555
Share premium 18,446 18,446 18,446
Retained earnings 6 130,824 128,432 136,287
--------------------- ------------------ ------------------
TOTAL EQUITY 153,825 151,433 159,288
--------------------- ------------------ ------------------
NET ASSET VALUE PER
ORDINARY SHARE (Pence) 337.71p 332.45p 349.70p
--------------------- ------------------ ------------------
Group Statement of Comprehensive Income
For the 6 months ended 30 September 2019
6 months ended 6 months ended Year ended
30 September 2019 30 September 2018 31 March 2019
(Unaudited) (Unaudited) (Audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Notes
INCOME
Dividend income 3,857 - 3,857 3,626 - 3,626 6,215 - 6,215
Other operating
income 2 2,191 - 2,191 2,143 - 2,143 4,296 - 4,296
6,048 - 6,048 5,769 - 5,769 10,511 - 10,511
GAINS AND LOSSES
ON
INVESTMENTS
Realised gains
on held-at-
fair-value
investments and
investment
properties
Unrealised
(losses)/gains
on
held-at-fair-value
investments and
investment
properties - 3,165 3,165 - 4,178 4,178 - 5,294 5,294
- (908) (908) - 4,649 4,649 - (3,600) (3,600)
TOTAL INCOME 6,048 2,257 8,305 5,769 8,827 14,596 10,511 1,694 12,205
-------------- ---------- ---------- -------------- ----------- ---------- -------------- ---------- ---------
EXPENSES
Investment management
fees (180) (420) (600) (175) (407) (582) (348) (813) (1,161)
Other operating
expenses (357) - (357) (389) - (389) (781) - (781)
FINANCE COSTS (2,088) - (2,088) (2,084) - (2,084) (4,168) - (4,168)
TOTAL EXPENSES (2,625) (420) (3,045) (2,648) (407) (3,055) (5,297) (813) (6,110)
-------------- ---------- ---------- -------------- ----------- ---------- -------------- ---------- ---------
PROFIT BEFORE
TAX 3,423 1,837 5,260 3,121 8,420 11,541 5,214 881 6,095
TAXATION (124) 80 (44) (116) 77 (39) (241) 343 102
-------------- ---------- ---------- -------------- ----------- ---------- -------------- ---------- ---------
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 3,299 1,917 5,216 3,005 8,497 11,502 4,973 1,224 6,197
-------------- ---------- ---------- -------------- ----------- ---------- -------------- ---------- ---------
EARNINGS PER
ORDINARY
SHARE (Pence) 3 7.25 4.21 11.46 6.60 18.65 25.25 10.92 2.68 13.60
The total column of this statement represents the Statement of
Comprehensive Income of the Group, prepared in accordance with
IFRS. The revenue return and capital return columns are
supplementary to this and are prepared under guidance issued by the
Association of Investment Companies. All items in the above
statement derive from continuing operations.
All income is attributable to the equity holders of Value and
Income Trust PLC, the parent company. There are no minority
interests.
The Board has declared a first quarterly dividend of 2.90p per
share (2019 - 2.80p) which was paid on 25 October 2019 to those
shareholders on the register on 27 September 2019 with an
ex-dividend date of 26 September 2019 and a second quarterly
dividend of 2.90p per share (2019 - 2.80p) which will be paid on 31
January 2020 to those shareholders on the register on 3 January
2020 with an ex-dividend date of 2 January 2020. The third
quarterly dividend of 2.90p (2019 - 2.80p) will be paid on 24 April
2020 to those shareholders on the register on 27 March 2020. The
ex-dividend date will be 26 March 2020.
Group Statement of Changes in Equity
For the 6 months ended 30 September 2019
6 months ended 30 September 2019
(Unaudited)
Share Share Retained
capital premium earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
Net assets at 31 March 2019 Notes 4,555 18,446 128,432 151,433
Net profit for the period - - 5,216 5,216
Dividends paid 4 - - (2,824) (2,824)
======== ======== ========= ========
NET ASSETS AT 30 SEPTEMBER
2019 4,555 18,446 130,824 153,825
-------- -------- --------- --------
Year ended 31 March 2019
(Audited)
Share Share Retained
capital premium earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
Net assets at 31 March 2018 4,555 18,446 127,518 150,519
Net profit for the period - - 6,197 6,197
Dividends paid 4 - - (5,283) (5,283)
======== -------- --------- --------
NET ASSETS AT 31 MARCH 2019 4,555 18,446 128,432 151,433
-------- -------- --------- --------
6 months ended 30 September 2018
(Unaudited)
Share Share Retained
capital premium earnings Total
GBP'000 GBP'000 GBP'000 GBP'000
Net assets at 31 March 2018 4,555 18,446 127,518 150,519
Net profit for the period - - 11,502 11,502
Dividends paid 4 - - (2,733) (2,733)
------------ ------------- ----------- -------
NET ASSETS AT 30 SEPTEMBER
2018 4,555 18,446 136,287 159,288
------------ ------------- ----------- -------
Group Statement of Cash Flows
For the 6 months ended 30 September 2019
6 months ended 6 months ended Year ended
30 September 30 September
2019 2018 31 March 2019
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
CASH FLOWS FROM OPERATING ACTIVITIES
Dividend income received 4,383 3,811 5,994
Rental income received 1,800 1,582 4,295
Interest received 6 1 8
Operating expenses paid (1,045) (1,079) (1,975)
========= --------- ---------
NET CASH INFLOW FROM OPERATING
ACTIVITIES 5,144 4,315 8,322
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (17,613) (10,713) (30,634)
Sale of investments 17,616 13,609 32,447
======== -------- --------
NET CASH INFLOW FROM INVESTING
ACTIVITIES 3 2,896 1,813
CASH FLOW FROM FINANCING ACTIVITIES
Interest paid (2,077) (2,074) (4,153)
Dividends paid (2,824) (2,733) (5,283)
======== -------- --------
NET CASH OUTFLOW FROM FINANCING
ACTIVITIES (4,901) (4,807) (9,436)
========= --------- ---------
NET INCREASE IN CASH AND CASH
EQUIVALENTS 246 2,404 699
Cash and cash equivalents at
the start of the period 4,338 3,639 3,639
CASH AND CASH EQUIVALENTS AT
THE OF THE PERIOD 4,584 6,043 4,338
--------- --------- ---------
Notes to the Financial Statements
1 Accounting policies
The Financial Statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) which comprise
standards and interpretations approved by the International
Accounting Standards Board (IASB) together with interpretations of
the International Accounting Standards and Standing Interpretations
Committee approved by the International Accounting Standards
Committee (IASC) that remain in effect, and to the extent that they
have been adopted by the European Union.
The functional and presentational currency of the Group is
pounds sterling because that is the currency of the primary
economic environment in which the Group operates. The Financial
Statements and the accompanying notes are presented in pounds
sterling and rounded to the nearest thousand pounds except where
otherwise indicated.
(a) Basis of preparation
The Financial Statements have been prepared on a going concern
basis and on the historical cost basis, except for the revaluation
of certain financial assets. Where presentational guidance set out
in the Statement of Recommended Practice 'Financial Statements of
Investment Trust Companies and Venture Capital Trusts' (the SORP)
issued by the Association of Investment Companies (AIC) in October
2019 is consistent with the requirements of IFRSs, the Directors
have sought to prepare the Financial Statements on a basis
compliant with the recommendations of the SORP, except for the
allocation of finance costs to revenue as explained below.
The Board has considered the requirements of IFRS 8, 'Operating
Segments'. The Board is charged with setting the Group's investment
strategy. The Board has delegated the day to day implementation of
this strategy to the Investment Managers but the Board retains
responsibility to ensure that adequate resources of the Group are
directed in accordance with its decisions. The Board is of the view
that the Group is engaged in a single segment of business, being
investments in quoted UK equities and UK commercial properties. The
view that the Group is engaged in a single segment of business is
based on the fact that one of the key financial indicators received
and reviewed by the Board is the total return from the investment
portfolio taken as a whole. A review of the investment portfolio is
included in the Investment Managers' Reports.
All expenses and finance costs are accounted for on an accruals
basis. Expenses are presented as capital where a connection with
the maintenance or enhancement of the value of investments can be
demonstrated. In this respect, and in accordance with the SORP, the
investment management fees are allocated 30% to revenue and 70% to
capital to reflect the Board's expectations of long-term investment
returns.
It is normal practice and in accordance with the SORP for
investment trust companies to allocate finance costs to capital on
the same basis as the investment management fee allocation.
However, as the Group has a significant exposure to property, and
property companies allocate finance costs to revenue to match
rental income, the Directors consider that, contrary to the SORP,
it is inappropriate to allocate finance costs to capital.
The Group's Financial Statements have been prepared using the
same accounting policies as those applied for the Financial
Statements for the year ended 31 March 2019, which received an
unqualified audit report.
(b) Going concern
The Group's business activities, together with the factors
likely to affect its future development and performance, are set
out in the Interim Board Report. The financial position of the
Group as at 30 September 2019 is shown in the Statement of
Financial Position. The cash flows of the Group for the half year
to 30 September 2019, which are not untypical, are set out in the
Group Statement of Cash Flows. The Group had fixed debt totalling
GBP49,920,000 as at 30 September 2019; none of the borrowings is
repayable before 2021. The Group had no short term borrowings. As
at 30 September 2019, the Group's total assets less current
liabilities exceeded its total non current liabilities by a factor
of over four.
The assets of the Group consist mainly of securities and
investment properties that are held in accordance with the Group's
investment policy, as set out on page 1. Most of these securities
are readily realisable, even in volatile markets. The Directors,
who have reviewed carefully the Group's forecasts for the coming
year, consider that the Group has adequate financial resources to
enable it to continue in operational existence for the foreseeable
future. Accordingly, the Directors believe that it is appropriate
to continue to adopt the going concern basis in preparing the
Group's Financial Statements.
(c) Basis of consolidation
The consolidated Financial Statements incorporate the Financial
Statements of the Company and the entity controlled by the Company
(its subsidiary). An investor controls an investee when it is
exposed, or has rights, to variable returns from its involvement
with the investee and has ability to affect those returns through
its power over the investee. The Company consolidates the investee
that it controls. All intra-group transactions, balances, income
and expenses are eliminated on consolidation.
Value and Income Services Limited is a private limited company
incorporated in Scotland under company number SC467598. It is a
wholly owned subsidiary of the Company and has been appointed to
act as the Alternative Investment Fund Manager of the Company.
(d) Presentation of Statement of Comprehensive Income
In order to reflect better the activities of an investment trust
company and in accordance with guidance issued by the AIC,
supplementary information which analyses the Statement of
Comprehensive Income between items of a revenue and capital nature
has been presented alongside the Statement of Comprehensive Income.
In accordance with the Company's Articles, net capital returns may
be distributed by way of dividend.
(e) Dividends payable
Interim dividends are recognised as a liability in the period in
which they are paid as no further approval is required in respect
of such dividends. Final dividends are recognised as a liability
only after they have been approved by Shareholders in general
meeting.
(f) Investments
Equity investments
All equity investments are classified on the basis of their
contractual cashflow characteristics and the Group's business model
for managing its assets. The business model, which is the
determining feature, is such that the portfolio of equity
investments is managed, and performance is evaluated, on the basis
of fair value. Consequently, all equity investments are measured at
fair value through profit or loss.
For listed investments, fair value through profit or loss is
deemed to be bid market prices or closing prices for SETS stocks
sourced from the London Stock Exchange. SETS is the London Stock
Exchange electronic trading service covering most of the market
including all FTSE 100 constituents and most liquid FTSE 250
constituents along with some other securities. Gains and losses
arising from changes in fair value are included in net profit or
loss for the period as a capital item in the Statement of
Comprehensive Income and are ultimately recognised in the retained
earnings.
Investment properties
Investment properties are initially recognised at cost, being
the fair value of consideration given, including transaction costs
associated with the investment property. Any subsequent capital
expenditure incurred in improving investment properties is
capitalised in the period incurred and included within the book
cost of the property.
After initial recognition, investment properties are measured at
fair value, with gains and losses recognised in the Statement of
Comprehensive Income.
The Group leases out all of its properties on operating leases.
A property held under an operating lease is classified and
accounted for as an investment property where the Group holds it to
earn rental, capital appreciation or both. Any such property leased
under an operating lease is carried at fair value. Fair value is
established by half-yearly professional valuation on an open market
basis by Savills (UK) Limited, Chartered Surveyors and Valuers, and
in accordance with the RICS Valuation - Professional Standards
issued in July 2017 (the 'RICS Red Book'). The determination of
fair value by Savills is supported by market evidence.
2 Other operating income
6 months ended 6 months ended Year ended
September 2019 September 2018 March 2019
GBP'000 GBP'000 GBP'000
Rental income 2,186 2,142 4,287
Interest receivable
on short term deposits 5 1 9
================ ---------------- ------------
2,191 2,143 4,296
---------------- ---------------- ------------
3 Return per ordinary share
The return per ordinary share is based on the following
figures:
6 months ended 6 months ended Year ended
September 2019 September 2018 March 2019
GBP'000 GBP'000 GBP'000
Revenue return 3,299 3,005 4,973
Capital return 1,917 8,497 1,224
Weighted average ordinary
shares in issue 45,549,975 45,549,975 45,549,975
Return per share - revenue 7.25p 6.60p 10.92p
Return per share - capital 4.21p 18.65p 2.68p
============== -------------- ------------
Total return per share 11.46p 25.25p 13.60p
-------------- -------------- ------------
4 Dividends paid
6 months ended 6 months ended Year ended
30 September 30 September
2019 2018 31 March 2019
GBP'000 GBP'000 GBP'000
Dividends on ordinary
shares:
Third quarterly dividend
of 2.80p per share (2018
- 2.70p) paid
26 April 2019 1,275 1,230 1,230
Final dividend of 3.40p
per share (2018 - 3.30p)
paid 26 July 2019 1,549 1,503 1,503
First quarterly dividend
of 2.80p per share (2018
- 2.70p) paid
26 October 2018 * - - 1,275
Second quarterly dividend
of 2.80p per share (2018
- 2.70p) paid 25 January
2019 * - - 1,275
============== -------------- -------------
Dividends paid in the
period 2,824 2,733 5,283
-------------- -------------- -------------
* First and second quarterly dividends for the year to 31 March
2020 have been declared with pay dates falling after 30 September
2019. These have not been included as liabilities in these
Financial Statements.
5 Interim dividend
The Directors have declared a first quarterly dividend of 2.90p
per ordinary share, paid on 25 October 2019 to shareholders
registered on 27 September 2019, with an ex dividend date of 26
September 2019 (2019 - 2.80p) and a second interim dividend of
2.90p per share, payable on 31 January 2020 to shareholders
registered on 3 January 2020, with an ex dividend date of 2 January
2020 (2019 - 2.80p). The third quarterly dividend of 2.90p (2019 -
2.80p) will be paid on 24 April 2020 to those shareholders on the
register on 27 March 2020. The ex-dividend date will be 26 March
2020.
6 Retained earnings
The table below shows the movement in retained earnings analysed
between revenue and capital items.
Revenue Capital Total
GBP'000 GBP'000 GBP'000
At 31 March 2019 3,995 124,437 128,432
Movement during the period:-
Profit for the period 3,299 1,917 5,216
Dividends paid on ordinary shares (2,824) - (2,824)
======= ======= =======
At 30 September 2019 4,470 126,354 130,824
------- ------- -------
7 Transaction costs
During the period, expenses were incurred in acquiring and
disposing of investments classified as fair value through profit or
loss. These have been expensed through capital and are included
within gains and losses on investments in the Statement of
Comprehensive Income.
The total costs are as follows:-
6 months ended 6 months ended Year ended
30 September
2019 30 September 2018 31 March 2019
GBP'000 GBP'000 GBP'000
Purchases 56 61 116
Sales 11 11 22
============== ----------------- -------------
67 72 138
-------------- ----------------- -------------
8 Fair value hierarchy disclosures
The table below sets out fair value measurements using the IFRS
13 Fair Value hierarchy:-
Level
Level 1 Level 2 3 Total
At 30 September 2019
(unaudited) GBP'000 GBP'000 GBP'000 GBP'000
Equity investments 129,484 - - 129,484
Investment properties - - 71,350 71,350
------------ ------------ -------- ---------
129,484 - 71,350 200,834
Borrowings - (59,557) - (59,557)
============ ============ ======== =========
129,484 (59,557) 71,350 141,277
------------ ------------ -------- ---------
At 31 March 2019 (audited)
Equity investments 128,706 - - 128,706
Investment properties - - 68,800 68,800
------------ ------------ -------- ---------
128,706 - 68,800 197,506
Borrowings - (59,244) - (59,244)
------------ ------------ -------- ---------
128,706 (59,244) 68,800 138,262
------------ ------------ -------- ---------
At 30 September 2018
(unaudited)
Equity investments 135,706 - - 135,706
Investment properties - - 67,850 67,850
------------ ------------ -------- ---------
135,706 - 67,850 203,556
Borrowings - (58,764) - (58,764)
------------ ------------ -------- ---------
135,706 (58,764) 67,850 144,792
------------ ------------ -------- ---------
Fair value categorisation within the hierarchy has been
determined on the basis of the degree to which the inputs to the
fair value measurements are observable and the significance of the
inputs to the fair value measurement in its entirety as
follows:-
Level 1 - inputs are unadjusted quoted prices in an active
market for identical assets
Level 2 - inputs, not being quoted prices, are observable,
either directly (i.e. as prices) or indirectly (i.e. derived from
prices)
Level 3 - inputs are not observable
The fair values of the debentures are determined by comparison
with the fair values of equivalent gilt edged securities,
discounted to reflect the differing levels of credit worthiness of
the borrowers. The fair values of the loans are determined by a
discounted cash flow calculation based on the appropriate
inter-bank rate plus the margin per the loan agreement. These
instruments are therefore considered to be Level 2 as defined
above. There were no transfers between Levels during the period.
All other assets and liabilities of the Group are included in the
balance sheet at fair value.
9 Relationship with the Investment Managers and other Related Parties
OLIM and OLIM Property each receives an investment management
fee of 0.60% of the capital assets that they manage.
OLIM Limited received an investment management fee of GBP393,000
(half year to 30 September 2018: GBP388,000 and year to 31 March
2019: GBP757,000). At the period end, the balance owed by the Group
to OLIM Limited was GBP65,000 (31 March 2019: GBP74,000) comprising
management fees for the month of September 2019, subsequently paid
in October 2019.
OLIM Property Limited received an investment management fee of
GBP207,000 (half year to 30 September 2018: GBP194,000 and year to
31 March 2019: GBP404,000). At the period end, the balance owed by
the Group to OLIM Property Limited was GBP34,000 (31 March 2019:
GBP34,000) comprising management fees for the month of September
2019, subsequently paid in October 2019.
Value and Income Services Limited is a wholly owned subsidiary
of Value and Income Trust PLC and all costs and expenses are borne
by Value and Income Trust PLC. Value and Income Services Limited
has not traded during the period.
10 Half Yearly Report
The financial information contained in this Half Yearly
Financial Report does not constitute statutory accounts as defined
in sections 434 - 436 of the Companies Act 2006. The financial
information for the six months ended 30 September 2019 and 30
September 2018 has not been audited.
The figures and financial information for the year ended 31
March 2019 has been extracted and abridged from the latest
published audited Financial Statements and do not constitute the
statutory accounts for that year. Those Financial Statements have
been filed with the Registrar of Companies and included the Report
of the Independent Auditor, which contained no qualification or
statement under section 498 of the Companies Act 2006.
This Half Yearly Report was approved by the Board on 1 November
2019.
Other information
Unsolicited Offers for shares in Value and Income Trust PLC
(Boiler room scams)
The Directors have recently become aware that some shareholders
have been targeted by organisations offering to buy their shares in
Value and Income Trust PLC at prices much higher than current
market values. These calls are unsolicited and are usually made by
overseas organisations or organisations using false UK addresses or
phone lines routed abroad who may indicate that the Company is the
subject of a hostile takeover.
Please be aware that the Company is not the subject of a
takeover and that these calls are being made by fraudsters.
Whilst the callers may sound credible and professional,
shareholders should be aware that their intentions are often
fraudulent and high pressure sales techniques may be applied, often
involving a request for an indemnity or a payment to be provided in
advance.
If you receive such a call, you should exercise caution and,
based on advice from the FCA, the following precautions are
suggested:
-- obtain the name of the individual or organisation calling;
-- check the FCA register to confirm if the caller is authorised;
-- call back using the details on the FCA register to verify the caller's identity;
-- discontinue the call if you are in any doubt about the
intentions of the caller, or if calls persist; and
-- report any individual or organisation that makes unsolicited
calls with an offer to buy or sell shares to the FCA and the City
of London Police.
Useful Contact Details:
ACTION FRAUD
Telephone: 0300 123 2040
Website: www.actionfraud.police.uk
FCA
Telephone: 0800 111 6768 (freephone)
E-mail: consumer.queries@fca.org.uk
Website: www.fca.org.uk
Maven Capital Partners UK LLP
Company Secretary
0141 306 7400
1 November 2019
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR XFLFBKFFBFBL
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