Half-yearly Report
Keystone Investment Trust plc
Half-Yearly Financial Report Announcement
for the Six Months to 31 March 2014
Performance Statistics
SIX MONTHS SIX MONTHS YEAR
ENDED ENDED ENDED
31 MAR 31 MAR 30 SEPT
Total Return (capital growth with income 2014 2013 2013
reinvested) CHANGE % CHANGE % CHANGE %
Net asset value (NAV) per share:
- debt at par +10.1 +21.3 +29.4
- debt at fair value +10.6 +22.5 +31.1
Share price (mid-market) +6.0 +16.2 +29.3
FTSE All-Share Index +4.8 +14.5 +18.9
Source: Thomson Reuters Datastream
Capital Return
NAV per share:
- debt at par +6.9 +17.9 +25.2
- debt at fair value +7.3 +18.8 +26.7
Share price +3.6 +13.5 +24.9
FTSE All-Share Index +3.2 +12.7 +14.8
SIX MONTHS SIX MONTHS
ENDED ENDED
31 MAR 31 MAR %
2014 2013 CHANGE
Revenue
Revenue return per ordinary share 29.1p 26.6p +9.4
Interim dividend per ordinary share 18.0p 18.0p -
Period End AT AT AT
31 MAR 31 MAR 30 SEPT
2014 2013 2013
NAV per share:
- debt at par 1831.2p 1612.8p 1712.3p
- debt at fair value 1781.8p 1557.2p 1660.1p
Share price 1705.0p 1496.0p 1646.0p
Discount/(premium) of share price to net
asset value per share:
- debt at par 6.9% 7.2% 3.9%
- debt at fair value 4.3% 3.9% 0.8%
Gearing from borrowings:
- gross 12.9% 14.7% 13.8%
- net 4.5% 8.5% 9.5%
.
INTERIM MANAGEMENT REPORT INCORPORATING THE CHAIRMAN'S STATEMENT
Chairman's Statement
Performance
The Company's shares gave a total return of 6.0% to shareholders over the six
months from 30 September 2013 to 31 March 2014. From the perspective of the
underlying net asset value (NAV) per ordinary share, the total return was
10.6%. These compare with a total return by the Company's benchmark for
performance measuring purposes, the FTSE All-Share Index, of 4.8% (all these
figures are with income reinvested). On 31 March 2014, the discount of the
share price relative to NAV (debt at fair value) was 4.3%.
As mentioned in my statement in the last annual financial report, we are very
grateful to Mark Barnett, on behalf of shareholders, for the excellent
performance he has produced since he took control of the portfolio on 1 January
2003. From that date to 31 March 2014 the Company's NAV total return was 336.3%
compared with 178.1% for the benchmark FTSE All-Share Index. The share price
total return was 417.1% (Source: Thomson Reuters Datastream). Mark will
continue to manage the Company's portfolio following his well-deserved
promotion to Head of UK Equities at Invesco Perpetual in March this year.
Gearing and Investment Guidelines
Equity exposure ranged from approximately 104% to 110% of net assets in the
period and stood at 104.5% at 31 March 2014 (109.5% at 30 September 2013). The
Board sets guidelines for the Manager for gearing and during the period the
gearing limits set by the Board were changed, requiring that the Manager must
make no net purchases if equity exposure is more than 105% of net assets
(reduced from 110%), and must make sales if (as a result of market movements)
equity exposure rises to more than 115% of net assets.
Dividend
The Board has declared a first interim dividend of 18p per ordinary share which
will be paid on 27 June 2014 to shareholders on the register on 30 May 2014.
The shares will be marked ex-dividend on 28 May 2014.
Auditor
In accordance with corporate governance best practice the Audit Committee
recently put the audit of the Company's annual financial statements to
competitive tender. Following this process the Directors asked Ernst & Young
LLP to resign and the Board has invited PricewaterhouseCoopers LLP to take
their place.
Beatrice Hollond
Chairman
15 May 2014
.
Manager's Report
Market Review
The period was noteworthy for improving news on the UK economy at the
macroeconomic level, concluding with an upbeat assessment of the economy by the
Chancellor of the Exchequer in his Budget speech in March. It also witnessed
the commencement of tapering of quantitative easing by the US Federal Reserve,
the prospect of which had been unsettling stock markets for much of 2013, with
stock market concerns allayed by comments that US interest rates would be kept
low for some time. However, 2014 commenced with a more difficult quarter as
concerns grew over the outlook for economic growth in emerging markets, most
notably China.
Portfolio Strategy & Review
The Company's net asset value, including reinvested dividends, rose by 10.6%
during the 6 months to the end of March 2014, compared to a rise of 4.8% from
the FTSE All-Share Index (total returns).
Over a third of the portfolio's rise was driven by its holdings in the
pharmaceutical sector, notably AstraZeneca. The company has unveiled a series
of positive surprises on the drug pipeline front, while the industry as a whole
is benefiting from an increased rate of drug approvals by the FDA. BTG saw its
shares rise on news that it had received approval from the US Food and Drug
Administration for its Varithena injectable foam treatment (previously known as
Varisolve) for the non-surgical treatment of varicose veins.
The holdings in the fixed line telecoms sector also performed well over the
period, contributing nearly one fifth of the portfolio's increase in value. BT
Group has continued to deliver results above expectations, with profit growth
driven by cost cutting as well as by the company's dominant position in fibre
optic infrastructure and broadband. The latest results were also accompanied by
a 13% hike in the dividend and a comment that its recently introduced BT Sport
package had made a "confident start". TalkTalk Telecom had previously seen its
shares underperform on fears over the impact that BT might have on its
broadband strategy, but saw its shares rise very strongly during the review
period on confirmation of good progress over the first half of its fiscal year,
with accelerating revenue growth.
The non-life insurance sector provided the next most significant contribution
to performance. The specialist insurance group Beazley saw gross premiums
written rise by 5%, driven by growth in reinsurance and positive news from its
Political Risks and Contingency Division. Beazley also said that the claims
environment had "developed favourably" last year.
The portfolio's holdings in the support services sector enjoyed mixed fortunes
over the period, but overall contributed positively. Capita maintained its very
impressive run of good news, again confirming a major increase in its pipeline
of tendered work - now up to £5.5 billion. Bunzl pleased investors with an
improving rate of organic revenue growth but particularly with a rise in its
operating margin. There was disappointing news, however, from Serco. The
company warned that 2014 profits would fall by as much as 20% below market
forecasts, citing a reduction of its largest contract, in Australia. More
positive news was that the company is now eligible to bid for UK government
contracts, after the government said that it was reassured that Serco "had
developed a thorough plan for corporate renewal", and the appointment of Rupert
Soames as the company's new CEO.
The political debate over electricity retail prices had a negative impact on
the share prices of SSE and Centrica. Both have subsequently shown some
recovery as SSE announced its own price freeze and Ofgem confirmed a full
competition industry review. The referral by Ofgem of the industry to the
Competition Commission noted that there is no meaningful evidence of wrong
doing or excessive returns, but just that some elements of the market are not
functioning optimally. We expect the review to conclude that industry returns
are not excessive, while moves such as that by SSE are already addressing the
political agenda of pricing and transparency of margins.
Rolls-Royce surprised the market with its first profit warning in a decade, and
confirmed that this year will see no growth in sales or profits. This is
largely blamed on defence spending cuts and the company claims that this is a
pause, not a change in direction, and that growth will resume in 2015. BAE
Systems, meanwhile, warned that profits would also be hit by defence cuts,
however, the company reassuringly announced that it had agreed pricing with
Saudi Arabia over the rising cost of a long running Eurofighter contract.
The UK Budget led to a fall in value of the holding in Ladbrokes, as a new duty
on fixed odds betting terminals was unveiled. This followed a warning from the
company earlier in the period that profits would not match expectations,
blaming challenging trading in its on-line business.
In terms of portfolio activity, new investments were made in BP, CLS Holdings,
Derwent London, G4S, Horizon Discovery, Nimrod Sea Assets, Macau Property and
Shaftesbury. The holding in Carnival was sold.
Outlook
The UK equity market has struggled to find a convincing direction in 2014. The
outlook is likely to remain challenging for the foreseeable future due to a
combination of elevated valuations and an environment of continued flat
corporate profit. In fact the recent earnings season was notable for the number
of profit warnings from large corporates. Despite the well-publicised
improvements in economic growth in the UK and US economies, the current
valuation of the market represents a level which perhaps overly reflects this
optimism and which may struggle to be maintained if the pace of earnings growth
does not accelerate. The other significant reasons for caution over the near
term are a reduction in the scale of asset purchases under the policy of QE in
the US, uncertainty about the strength of economic growth in the developing
world especially China, and a heightened level of political risk both in a
domestic context ahead of the UK General Election and internationally due to
the Ukrainian/Russian situation.
Despite the overall cautious tone of these comments, there remain some pockets
of undervaluation within the UK stock market. The key to navigating the near
term is to remain highly vigilant about the strength of corporate performance
and to remain judicious in portfolio selection, given the increase in
valuations. It is unlikely that the performance of the market in 2013 will be
repeated in the current year. The portfolio strategy remains largely unchanged
from the recent past, with a strong preference for companies that have proven
ability to grow revenues, profits and free cash flow in this low growth world,
coupled with management teams that are fully cognisant of the need to deliver
sustainable, long term, dividend growth. It is this type of investment
opportunity that forms the majority of the portfolio and that we believe offers
the potential to deliver good risk adjusted returns over the long term.
Mark Barnett
Fund Manager
15 May 2014
.
Related Party Transactions and Transactions with the Manager
Note 21 of the 2013 annual financial report gives details of related party
transactions and transactions with the Manager. The basis of these has not
changed for the six months being reported. The 2013 annual financial report is
available on the Manager's website at www.invescoperpetual.co.uk/
investmenttrusts
Principal Risks and Uncertainties
The principal risk factors relating to the Company can be summarised as:
- Investment Objective - the Company may not achieve its published objective.
- Market Risk - a fall in the stock market as a whole will affect the
performance of the portfolio and individual investments.
- Investment Risk - the active fund management approach employed can result in
a portfolio that looks and behaves differently to the benchmark index.
- Shares - share price is affected by market sentiment, supply and demand, and
dividends declared as well as portfolio performance.
- Gearing - borrowing will amplify the effect on shareholders' funds of
portfolio gains and losses.
- Reliance on the Manager and Other Service Providers - failure by any service
provider to carry out its obligations to the Company could have a materially
detrimental impact on the operations of the Company and affect the ability of
the Company to successfully pursue its investment policy.
- Regulatory - whilst compliance with rules and regulations is closely
monitored, breaches could affect returns to shareholders.
A detailed explanation of these principal risks and uncertainties can be found
on pages 9 and 10 of the 2013 annual financial report, which is available on
the Manager's website.
In the view of the Board, these principal risks and uncertainties are equally
applicable to the remaining six months of the financial year as they were to
the six months under review.
Going Concern
This half-yearly financial report has been prepared on a going concern basis.
The Directors consider this is the appropriate basis as they have a reasonable
expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future, being taken as 12 months after the date
of this report. In considering this, the Directors took into account the
diversified portfolio of readily realisable securities which can be used to
meet short-term funding commitments, and the ability of the Company to meet all
of its liabilities, including the debentures, and ongoing expenses. The
Directors also considered the revenue forecasts for the year and future
dividend payments in concluding on the going concern basis.
.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
in respect of the preparation of the half-yearly financial report.
The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and UK Accounting
Standards.
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements contained within this half-yearly
financial report have been prepared in accordance with the Accounting Standards
Board's Statement `Half-Yearly Financial Report';
- the interim management report includes a fair review of the information
required by DTR 4.2.7R and DTR 4.2.8R of the FCA's Disclosure and Transparency
Rules; and
- the interim management report includes a fair review of the information
required on related party transactions.
The half-yearly financial report has not been audited or reviewed by the
Company's auditors.
Signed on behalf of the Board of Directors.
Beatrice Hollond
Chairman
15 May 2014
.
INVESTMENTS BY INDUSTRY AT 31 MARCH 2014
UK listed ordinary shares unless otherwise stated
INDUSTRY/COMPANY MARKET VALUE %OF
£'000 PORTFOLIO
Basic Materials
Coalfield Resources 284 0.1
HaloSource 69 -
353 0.1
Consumer Goods
British American Tobacco 12,255 4.7
Imperial Tobacco 10,553 4.1
Reynolds American - US common stock 9,257 3.6
Reckitt Benckiser 7,133 2.8
39,198 15.2
Consumer Services
Thomas Cook 6,160 2.4
Reed Elsevier 5,002 1.9
Compass 4,830 1.9
N Brown 4,201 1.6
Ladbrokes 2,896 1.1
Betfair 418 0.2
Mirada 5 -
23,512 9.1
Financials
Provident Financial 6,178 2.4
Beazley 5,741 2.2
Amlin 5,404 2.1
Legal & General 5,139 2.0
Hiscox 4,719 1.8
A J Bell - Unquoted 3,750 1.5
Shaftesbury 3,741 1.4
NewRiver Retail 3,709 1.4
London Stock Exchange 3,487 1.3
Workspace 3,336 1.3
Lancashire 3,302 1.3
Macau Property Opportunities Fund 2,621 1.0
Derwent London 2,335 0.9
Nimrod Sea Assets 2,130 0.8
IP Group 2,069 0.8
Imperial Innovations 2,022 0.8
CLS 1,567 0.6
Doric Nimrod Air Two - Preference Shares 1,469 0.6
Doric Nimrod Air Three - Preference Shares 1,448 0.6
Sherborne Investors Guernsey B - A Shares 1,386 0.5
Damille Investments II 1,174 0.5
Altus Resource Capital 249 0.1
Acquisition 1234 - Unquoted 2 -
66,978 25.9
INDUSTRY/COMPANY MARKET VALUE %OF
£'000 PORTFOLIO
Healthcare
AstraZeneca 9,892 3.8
Roche - Swiss common stock 9,744 3.8
GlaxoSmithKline 8,519 3.3
Novartis - Swiss common stock 8,072 3.1
BTG 4,500 1.7
Napo Pharmaceuticals - Unquoted US common 3,022 1.2
stock
Lombard Medical Technologies 2,321 0.9
Vectura 2,060 0.8
PuriCore 1,088 0.4
Horizon Discovery 743 0.3
XTL Biopharmaceuticals - ADR 53 -
50,014 19.3
Industrials
BAE Systems 7,113 2.8
Rolls-Royce 5,066 2.0
Bunzl 5,013 1.9
Babcock International 4,857 1.9
Rentokil Initial 4,829 1.9
Capita 4,746 1.8
G4S 3,263 1.3
Serco 2,681 1.0
HomeServe 2,434 0.9
Chemring 715 0.3
Nexeon - B Shares - Unquoted 497
Nexeon - Preference C Shares - Unquoted 400 0.3
Nexeon - Unquoted 4
41,618 16.1
Oil & Gas
BP 5,462 2.1
5,462 2.1
Telecommunications
BT Group 10,421 4.0
KCOM 3,772 1.5
TalkTalk Telecom 3,555 1.4
17,748 6.9
Utilities
SSE 5,072 2.0
Drax 4,888 1.9
Centrica 3,513 1.3
Barclays Bank - Nuclear Power Notes 28 Feb 208 0.1
2019(1)
13,681 5.3
Total Investments 258,564 100.0
(1)Contingent Value Rights (CVR) referred to as Nuclear Power Notes (NPN) were
offered by EDF as a partial alternative to cash in it's bid for British Energy
(BE). The NPNs were issued by Barclays Bank. The CVRs participate in BE's
existing business.
.
CONDENSED INCOME STATEMENT
YEAR
SIX MONTHS TO SIX MONTHS TO ENDED
31 MARCH 2014 31 MARCH 2013 30
SEPTEMBER
2013
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL
NOTE £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on - 19,278 19,278 - 35,273 35,273 49,016
investments
Foreign exchange 2 - (9) (9) - (30) (30) (4)
(losses)/gains
Income:
UK dividends - 2,922 - 2,922 3,007 - 3,007 6,707
ordinary
UK dividends - 471 280 751 - - - 765
special
Overseas dividends 965 - 965 1,338 - 1,338 1,521
- ordinary
Overseas dividends 351 - 351 - - - 189
- special
Scrip dividends 25 - 25 6 - 6 34
Deposit interest 7 - 7 1 - 1 2
Investment 3 (231) (1,316) (1,547) (188) (868) (1,056) (2,577)
management and
performance-related
fees
Other expenses (171) - (171) (159) - (159) (333)
Net return before 4,339 18,233 22,572 4,005 34,375 38,380 55,320
finance costs and
taxation
Finance costs
Interest payable (274) (822) (1,096) (274) (822) (1,096) (2,191)
Debenture stock buy - - - - (6) (6) (6)
back
Distributions in (6) - (6) (6) - (6) (12)
respect of
non-equity shares
Return on ordinary 4,059 17,411 21,470 3,725 33,547 37,272 53,111
activities before
taxation
Tax on ordinary 4 (122) - (122) (149) - (149) (192)
activities
Net return on 3,937 17,411 21,348 3,576 33,547 37,123 52,919
ordinary activities
after tax
Return per ordinary
share
Basic 5 29.1p 128.8p 157.9p 26.6p 249.6p 276.2p 393.1p
The total column of this statement represents the Company's profit and loss
account prepared in accordance with UK Accounting Standards. The supplementary
revenue and capital columns are presented for information purposes in
accordance with the Statement of Recommended Practice issued by the Association
of Investment Companies. All items in the above statement derive from
continuing operations and the Company has no other gains or losses and
therefore no statement of total recognised gains or losses is presented. No
operations were acquired or discontinued in the period.
.
CONDENSED BALANCE SHEET
Registered number 538179
NOTE AT AT AT
31 MARCH 31 MARCH 30
2014 2013 SEPTEMBER
£'000 £'000 2013
£'000
Fixed assets
Investments held at fair value through 258,564 233,967 254,279
profit or loss
Current assets
Amounts due from brokers 214 1,545 774
Unrealised profit on forward currency 2 - - 1
contracts
Prepayments and accrued income 1,358 1,263 606
Overseas withholding tax recoverable 356 332 172
Cash and cash funds 20,842 13,472 9,809
22,770 16,612 11,362
Creditors: amounts falling due within
one year
Amounts due to brokers - (367) (5)
Accruals and deferred income (1,253) (1,168) (1,265)
Performance-related fee - - (1,002)
(1,253) (1,535) (2,272)
Net current assets 21,517 15,077 9,090
Total assets less current liabilities 280,081 249,044 263,369
Creditors: amounts falling due after
more than one year
Debenture stock 6 (31,652) (31,626) (31,639)
Cumulative preference shares (250) (250) (250)
Provision 3 (623) (349) -
Net assets 247,556 216,819 231,480
Capital and reserves
Called up share capital 6,760 6,722 6,760
Share premium 3,449 2,214 3,449
Capital redemption reserve 466 466 466
Capital reserve 228,490 199,435 211,079
Revenue reserve 8,391 7,982 9,726
Shareholders' funds 247,556 216,819 231,480
Net asset value per share
Basic 7 1831.2p 1612.8p 1712.3p
.
CONDENSED CASH FLOW STATEMENT
SIX MONTHS SIX MONTHS YEAR TO
TO 31MARCH TO 31 MARCH 30 SEPTEMBER
2014 2013 2013
£'000 £'000 £'000
Total return before finance costs and 22,572 38,380 55,320
taxation
Adjustment for gains on investments and (19,278) (35,273) (49,016)
certificates of deposit
Cash outflow from forward currency - (3) (4)
contracts
Scrip dividends (25) (16) (34)
(Increase)/decrease in debtors (937) (740) 77
(Decrease)/increase in creditors and (390) 40 791
provisions
Tax on overseas dividends (122) (149) (192)
Cash inflow from operating activities 1,820 2,239 6,942
Servicing of finance (1,089) (1,090) (2,179)
Capital expenditure and financial
investment
Purchases of investments (35,835) (25,979) (48,638)
Proceeds from sale of investments 51,409 25,512 42,029
Net equity dividends paid - note 9 (5,272) (4,100) (6,508)
Net cash inflow/(outflow) before 11,033 (3,418) (8,354)
management of liquid resources and
financing
Management of liquid resources (5,700) 1,670 5,720
Financing
Buy back of debenture stock - (37) (37)
Net proceeds from shares issued - 993 2,266
Decrease in cash in the period 5,333 (792) (405)
Cashflow from movement in liquid 5,700 (1,670) (5,720)
resources
Debenture stock non-cash movement (13) (12) (26)
Reduction in debenture stock - 31 32
Movement in net debt in the period 11,020 (2,443) (6,119)
Net debt at beginning of period (22,080) (15,961) (15,961)
Net debt at period end (11,060) (18,404) (22,080)
Analysis of changes in net debt
Brought forward:
  Cash and cash funds 9,809 15,934 15,934
  Debenture stock (31,639) (31,645) (31,645)
  Cumulative preference shares (250) (250) (250)
Net debt brought forward (22,080) (15,961) (15,961)
Movements in the period:
Cash inflow/(outflow) from cash funds 11,033 (2,462) (6,125)
and short term deposits
Reduction in debenture stock liability - 31 32
Debenture stock non-cash movement (13) (12) (26)
Net debt at period end (11,060) (18,404) (22,080)
.
CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
CAPITAL
SHARE SHARE REDEMPTION CAPITAL REVENUE
CAPITAL PREMIUM RESERVE RESERVE RESERVE TOTAL
£'000 £'000 £'000 £'000 £'000 £'000
For the six months ended 31
March 2014
At 30 September 2013 6,760 3,449 466 211,079 9,726 231,480
Dividends paid - note 9 - - - - (5,272) (5,272)
Net return on ordinary - - - 17,411 3,937 21,348
activities
At 31 March 2014 6,760 3,449 466 228,490 8,391 247,556
For the six months ended 31
March 2013
At 30 September 2012 6,685 1,258 466 165,888 8,506 182,803
Dividends paid - note 9 - - - - (4,100) (4,100)
Issue of ordinary shares - 37 956 - - - 993
note 8
Net return on ordinary - - - 33,547 3,576 37,123
activities
At 31 March 2013 6,722 2,214 466 199,435 7,982 216,819
For the year ended 30
September 2013
At 30 September 2012 6,685 1,258 466 165,888 8,506 182,803
Dividends paid - note 9 - - - - (6,508) (6,508)
Issue of ordinary shares 75 2,191 - - - 2,266
Net return on ordinary - - - 45,191 7,728 52,919
activities
At 30 September 2013 6,760 3,449 466 211,079 9,726 231,480
.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. Accounting Policies
The condensed financial statements have been prepared using the same accounting
policies as those adopted in the annual financial report for the year ended 30
September 2013.
2. Forward Currency Contracts
The equity portfolio includes £32,278,000 (31 March 2013: £35,096,000;
30 September 2013: £35,123,000) of equities denominated in currencies other
than pounds sterling. In order to manage the currency risk, the Manager may
hedge part of the currency exposure into sterling through the use of forward
foreign exchange contracts. If used, foreign exchange contracts are designated
as fair value hedges through profit or loss. At the period end no forward
foreign exchange contracts were held.
3. Base Management Fee, Finance Costs and Performance-related Fee
The base management fee and finance costs are allocated 75% to capital and 25%
to revenue. The base management fee rate is 0.2% of the ten day average
mid-market capital of the Company at each quarter end date.
Up to 31 December 2012, a performance-related fee was due after the end of the
calendar year if the Company's annualised total return over the previous three
years was greater than the annualised return of the FTSE All-Share (Total
Return) Index over the same period, plus 2%. For the accounting year to 30
September 2013, the period element of the performance-related fee was revised
so that current and future performance-related fee calculation periods are
coterminous with the Company's September year end, starting with that year end.
SIX MONTHS TO SIX MONTHS TO YEAR TO
31 MAR 2014 31 MAR 2013 30 SEPT
£'000 £'000 2013
£'000
Provision brought forward - 322 322
Paid in period - (277) (277)
Charge for the period/(reversal of 623 304 (45)
provision)
Provision carried forward 623 349 -
4. Tax
The tax effect of expenditure is allocated between capital and revenue on the
same basis as the particular item to which it relates, using the Company's
effective rate of tax for the accounting period.
5. Basis of Returns
SIX MONTHS TO SIX MONTHS TO YEAR TO
31 MAR 2014 31 MAR 2013 30 SEPT 2013
Returns after tax:
Revenue £3,937,000 £3,576,000 £7,728,000
Capital £17,411,000 £33,547,000 £45,191,000
Total £21,348,000 £37,123,000 £52,919,000
Weighted average number of ordinary 13,518,799 13,441,739 13,458,388
shares in issue during the period
6. Debenture Stock
The Company's structured debt at the period end is as follows:
31 MAR 2014 31 MAR 2013 30 SEPT 2013
£'000 £'000 £'000
7.75% debenture stock 2020 7,000 7,000 7,000
6.5% debenture stock 2023 24,968 24,968 24,968
Total 31,968 31,968 31,968
Discount and issue expenses on (316) (342) (329)
debenture stock
31,652 31,626 31,639
7. Basis of Net Asset Value per Ordinary Share
AT AT AT
31 MAR 2014 31 MAR 2013 30 SEPT 2013
Shareholders' funds £247,556,000 £216,819,000 £231,480,000
Ordinary shares in issue at period 13,518,799 13,443,799 13,518,799
end
8. Movements in Called up Share Capital
SIX MONTHS TO SIX MONTHS TO YEAR TO
31 MAR 2014 31 MAR 2013 30 SEPT 2013
£'000 £'000 £'000
Number of ordinary 50p shares:
Brought forward 13,518,799 13,368,799 13,368,799
Issued in period - 75,000 150,000
In issue at period end 13,518,799 13,443,799 13,518,799
9. Dividends Paid
SIX MONTHS TO SIX MONTHS TO YEAR TO
31 MAR 2014 31 MAR 2013 30 SEPT 2013
£'000 £'000 £'000
Second interim 32p (2013: 30.5p) 4,326 4,100 4,100
Special dividend 7p 946 - -
First interim 18p - - 2,420
Return of unclaimed dividends from - - (12)
previous years
Total paid 5,272 4,100 6,508
The Company pays two interims a year, the second interim being in lieu of a
final dividend. The first interim dividend of 18p will be paid on 27 June 2014
to shareholders on the register on 30 May 2014.
10. Investment Trust Status
It is the intention of the Directors to conduct the affairs of the Company so
that it satisfies the conditions for approval as an investment trust company
within the meaning of section 1159 of the Corporation Tax Act 2010.
11. Status of Half-Yearly Financial Report
The financial information contained in this half-yearly financial report, which
has not been reviewed or audited by the independent auditors, does not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. The financial information for the half-years ended 31 March
2013 and 31 March 2014 has not been audited. The figures and financial
information for the year ended 30 September 2013 are extracted and abridged
from the latest published accounts and do not constitute the statutory accounts
for that year. Those accounts have been delivered to the Registrar of Companies
and include the Report of the Independent Auditors, which was unqualified and
did not include a statement under section 498 of the Companies Act 2006.
By order of the Board
Invesco Asset Management Limited
Company Secretary
15 May 2014
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