Annual Financial Report
ABERDEEN NEW DAWN INVESTMENT TRUST PLC
ANNUAL FINANCIAL REPORT
for the year ended 30 April 2015
STRATEGIC REPORT - COMPANY SUMMARY AND FINANCIAL HIGHLIGHTS
The Company
The Company is an investment trust and its Ordinary shares are listed on the premium segment of the Official List of the UK Listing Authority and traded on the London Stock Exchange. An investment trust enables savers to make a single investment in a diversified portfolio.
Investment Objective
The investment objective of the Company is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.
Company Benchmark
The Company compares its performance to the currency-adjusted MSCI All Countries Asia Pacific ex Japan Index.
Investment Manager
Aberdeen Asset Management Asia Limited ("Investment Manager" or "AAM Asia").
Alternative Investment Fund Manager
Aberdeen Fund Managers Limited ("Manager", "AFML" or "the AIFM").
Authorised and regulated by the Financial Conduct Authority.
Management Arrangements provided by Aberdeen Group
To comply with the Alternative Investment Fund Managers Directive ("AIFMD"), the Company has appointed Aberdeen Fund Managers Limited ("AFML"), a wholly owned subsidiary of Aberdeen Asset Management PLC, as its alternative investment fund manager ("Manager" or "AIFM"). The management agreement with AFML complies with the new AIFMD regulatory regime and under this arrangement, AFML has been appointed to provide investment management, risk management, administration and company secretarial services as well as promotional activities. The Company's portfolio will be managed by Aberdeen Asset Management Asia Limited ("Investment Manager" or "AAM Asia") by way of a group delegation agreement in place between AFML and AAM Asia. In addition, AFML has sub-delegated promotional activities to Aberdeen Asset Managers Limited and administrative and secretarial services to Aberdeen Asset Management PLC.
Website
Up-to-date information can be found on the Company's website - www.newdawn-trust.co.uk
Pre-investment Disclosure Document (PIDD)
The Alternative Investment Fund Managers Directive requires AFML, as the alternative investment fund manager of Aberdeen New Dawn Investment Trust PLC, to make available to investors certain information prior to such investors' investment in the Company. The Company's PIDD is available for viewing on the Company's website.
Financial Highlights
|
|
2015 |
2014 |
|
Share price total return |
+14.3% |
-14.0% |
|
Net asset value total return |
+17.1% |
-8.9% |
|
Benchmark total return |
+22.7% |
-6.8% |
|
Earnings per share (revenue) |
4.18p |
3.79p |
|
Dividends per share |
3.80p |
3.60p |
STRATEGIC REPORT - OVERVIEW OF STRATEGY
Introduction
The purpose of this report is to provide shareholders with details of the Company's strategy and business model as well as the principal risks and challenges it faces.
The business of the Company is that of an investment trust and the Directors do not envisage any change in this activity in the foreseeable future.
Objective
To provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.
Business Model
Investment Policy
The Company's assets are invested in a diversified portfolio of securities in quoted companies spread across a range of industries and economies in the Asia Pacific region excluding Japan. Investments may also be made through collective investment schemes and in companies traded on stock markets outside the Asia Pacific region provided that over 75% of their consolidated revenue is earned from trading in the Asia Pacific region or they hold more than 75% of their consolidated net assets in the Asia Pacific region.
The Board is responsible for determining the gearing strategy for the Company. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. At the year end there was net gearing of 8.7% which compares with a current maximum limit set by the Board of 25%. Borrowings are short to medium term and particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy.
In addition, it is the investment policy of the Company to invest no more than 15% of its gross assets in other listed investment companies (including listed investment trusts). As at 30 April 2015, 2.4% of the Company's portfolio was invested in investment companies.
Investment Process
The Directors are responsible for determining the investment policy and the investment objective of the Company. Day to day management of the Company's assets has been delegated to Aberdeen Asset Management Asia Limited ("AAM Asia" or the "Investment Manager"). The Investment Manager invests in a diversified range of companies throughout the Asia Pacific region in accordance with the investment policy. The Investment Manager follows a bottom-up investment process based on a disciplined evaluation of companies through direct visits by its fund managers. Stock selection is the major source of added value. No stock is bought without the fund managers having first met management. The Investment Manager estimates a company's worth in two stages: quality then price. Quality is defined by reference to management, business focus, the balance sheet and corporate governance. Price is calculated by reference to key financial ratios, the market, the peer group and business prospects. Top-down investment factors are secondary in the Investment Manager's portfolio construction, with diversification rather than formal controls guiding stock and sector weights. Little attention is paid to market capitalisation. The Investment Manager is authorised to invest up to 15% of the Company's gross assets in any single stock, calculated at the time an investment is made.
Principal Risks and Uncertainties
The Board regularly reviews major strategic risks and sets out delegated controls designed to manage those risks. Investment in Asia Pacific securities or those of companies that derive significant revenue or profit from the Asia Pacific region involves a greater degree of risk than that usually associated with investment in the securities in major securities markets, including the risk of social, economic or political instability, which may have an adverse effect on economic returns or restrict investment opportunities.
Aside from the risks associated with investment in Asia, the key risks related to investment strategy, including inappropriate asset allocation or gearing, are managed through a defined investment policy, specific guidelines and restrictions as well as the process of oversight at each Board meeting. Operational disruption, accounting and legal risks are also covered at least annually. Regulatory and compliance is reviewed at each Board meeting.
In detail, the major risks associated with the Company are:
Operational risk: In common with most other investment trust companies, the Company has no employees. The Company therefore relies upon the services provided by third parties and is dependent on the control systems of the Aberdeen Group, BNP Paribas Securities Services (the Depositary), Equiniti Limited (the registrar) and BNP Paribas, who maintain the Company's accounting records. The security of the Company's assets, dealing procedures, accounting records and maintenance of regulatory and legal requirements, depend on the effective operation of these systems. The effectiveness of the controls and systems is monitored by the Board on a regular basis. The Board also considers succession arrangements for key employees of the Investment Manager and the business continuity arrangements for the Company's key service providers.
The management of the Company has been delegated to the Aberdeen Group under a management agreement. The performance of the Aberdeen Group, in particular the Investment Manager, is regularly reviewed by the Board. Its compliance with the management agreement is also formally reviewed on an annual basis.
Investment and market risk: the Board continually monitors the investment policy of the Company, taking account of stockmarket factors, and reviews the Company's performance compared to its benchmark index. Further details on other risks relating to the Company's investment activities, including market price, interest rate, liquidity and foreign currency risks, are disclosed in note 18 to the financial statements.
Gearing risk: in the long-term, to help income generation and capital growth, the Company has borrowed to invest in assets. This is undertaken in the belief that the assets will produce a greater total return than the cost of the borrowing over time. However, if asset values decline, that decline is exacerbated by gearing. During the year under review, the Company's borrowing was exclusively bank borrowing, in the form of a multi-currency loan facility of which approximately £26,085,000, under the £35,000,000 loan facility, was drawn down at 30 April 2015. Further details are provided in note 11 to the financial statements. The bank borrowings have certain associated covenants which are monitored by the Manager and Board. The gearing risk of the Company is actively managed and monitored with the Manager able to increase or decrease the short-term borrowings in line with their view of the stock market.
Regulatory risk: The Company operates in a complex regulatory environment and faces a number of regulatory risks. Breaches of regulations, such as Section 1158 of the Corporation Tax Act 2010, the UK Listing Rules, the Disclosure and Transparency Rules, the Companies Act 2006 and Alternative Investment Fund Managers Directive, could lead to a number of detrimental outcomes and reputational damage including additional tax obligations. The Board and Manager monitor changes in government policy and legislation which may have an impact on the Company and the Audit and Risk Committee monitors compliance with regulations by reviewing internal control reports from the Manager.
Share price discount to NAV risk: The Company's shares may trade at a discount to the underlying NAV per share. The discount (or premium) at which the Company's shares may trade is influenced by the supply of shares and the number of buyers and sellers of the Company's shares in the market. The Board regularly reviews the Company's discount/premium.
Income/dividend risk: the level of income, and hence the level of dividend paid to shareholders, is dependent primarily on the dividends paid by investee companies. At times, those dividends may fall with a consequential effect on the ability of the Company to maintain dividends to shareholders. The Board monitors these risks through the receipt of detailed income forecasts and considers the level of income at each meeting. However, the Company may draw upon revenue reserves if required.
In detail, the particular risks of investment in Asia include:
- greater risk of social, political and economic instability; the small size of the markets for securities of emerging markets issuers and associated low volumes of trading give rise to price volatility and a lack of liquidity;
- certain national policies which may restrict the investment opportunities available in respect of a fund, including restrictions on investing in issuers or industries deemed sensitive to national interests; changes in taxation laws and/or rates which may affect the value of the Company's investments;
- the absence in some markets of developed legal structures governing private or foreign investment and private property leading to supervision and regulation; and changes in government which may have an adverse effect on economic reform. Companies in the Asia Pacific region are not, in all cases, subject to the equivalent accounting, auditing and financial standards of those in the United Kingdom; and
- currency fluctuations which may affect the value of the Company's investments and the income derived therefrom.
Future Trends
The majority of the region's economies have high rates of growth, strong trade and fiscal surpluses and rapidly developing capital markets. Nevertheless the past has demonstrated that there can be regional risks and the Chairman sets out in his Statement the Board's considered view of the future.
Performance and Outlook
The strategic direction and development of the Company is regularly discussed as part of Board meeting agendas. At each Board meeting, the Directors consider a number of performance measures to assess the Company's success in achieving its objectives. The Board also considers the future direction of the Company at an annual strategy meeting where a wide discussion takes place on development and strategic direction. The Company's broker, Cantor Fitzgerald, reports to the Board regularly during the course of the year and covers the topics of sector development, perception of the Company and relevant strategic issues. The Board also considers the efficacy of the promotional activities of the Company, including communications with shareholders.
A review of the Company's activities and performance during the year ended 30 April 2015 and future developments is detailed in the Chairman's Statement and the Investment Manager's Review. This covers market background, investment activity, portfolio strategy, dividend and gearing policy and investment outlook.
Key Performance Indicators (KPIs)
The main KPIs against which the Board assesses the Company's performance include:
- Net Asset Value
- Revenue Return per Ordinary Share
- Share Price
- Dividend per Share
- Discount
- Performance relative to the Benchmark
- Ongoing Charges
Board Diversity
The Board recognises the importance of having a range of skilled, experienced individuals with relevant knowledge in order to allow it to fulfill its obligations. At 30 April 2015, there were four male Directors and one female Director. The Company has no employees.
Employee and Socially Responsible Policies
As the Company has delegated the management of the portfolio, it has no employees and therefore has no requirement for disclosures in this area. The Company's socially responsible investment policy is set out in the Statement of Corporate Governance.
Global Greenhouse Gas Emissions
The Company has no greenhouse gas emissions to report from its operations, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.
The Aberdeen Group's corporate socially responsible investment policy including environmental policy can be found on http://www.aberdeen-asset.com/ aam.nsf/ groupCsr/home.
Duration
The Company does not have a fixed life. However, under the Articles of Association, if in the 90 days preceding the Company's financial year end (30 April) the Ordinary shares have been trading, on average, at a discount in excess of 15% to the underlying net asset value over the same period, notice will be given of an ordinary resolution to be proposed at the following Annual General Meeting ("AGM") to approve the continuation of the Company. If the resolution for the continuation of the Company is not passed at that AGM or any adjournment thereof, the Directors will convene a general meeting to be held not more than three months after the AGM at which a special resolution for the winding-up of the Company will be proposed. In the 90 days to 30 April 2015 the average discount to underlying net asset value (excluding current year income) of the Ordinary shares was 10.3%, therefore no continuation resolution will be put to the Company's shareholders.
David Shearer
Chairman
26 June 2015
STRATEGIC REPORT - CHAIRMAN'S REVIEW
Background
Over the year ended 30 April 2015, your Company delivered a robust performance in absolute terms, with the net asset value (NAV) rising by 17.1% on a total return basis to 216.67p, while the share price rose by 14.3% to 188.25p. This reflects a widening of the discount to NAV to 11.8% from 9.5%, though as I write this has narrowed again to 10.9%. Nonetheless, the Company performance lagged the market, which rose even further by 22.7% in sterling terms, against the backdrop of continued loose monetary policy. It is not unusual for your Investment Manager to trail the market in such frothy conditions. Longer term, your Company's relative returns remain strong, with the cum income NAV up 45.4% over five years, versus the market's gain of 39.8%. We believe that both short and long term performance reflects your Investment Manager's bottom-up investment approach, which seeks to boost returns by focusing on businesses with sustainable growth models, robust balance sheets, proven management, transparency and good corporate governance.
The Board is pleased to announce a final dividend of 2.8p per share (2.6p - 2014), making a total dividend per share of 3.8p (3.6p - 2014), an increase of 5.6% on last year. If approved by shareholders at the Annual General Meeting ("AGM") the final dividend will be paid on 4 September 2015.
Overview
Asian equities had a good year. Loose monetary policy and the collapse in oil prices were the overarching themes. The lower oil price was an enabler, as central banks cut interest rates, to revive faltering economic growth amid receding inflation. The sharp fall in energy prices also gave governments the leeway to fix structural imbalances that had impeded growth. These included the removal of costly fuel subsidies, which, in turn, freed up resources for more productive initiatives, such as infrastructure development.
At the country level, China's central government continued in its attempts to shift its economy from being driven by investment alone, to one that is broader based and consumption-led. The process proved both arduous and painful, as annual growth missed official targets for the first time in 17 years, thus prompting several rounds of monetary stimulus. In India and Indonesia, newly-elected governments attempted to accelerate reforms, although they met with varying degrees of success. The Investment Manager's Review contains a fuller discussion of how individual markets performed during the period, however, in brief, notable positive contributions to the Company's performance during the year came from the large position in India and the underweight exposures to Korea and Australia. The underweight position in China was the major contributor to relative underperformance.
Gearing
The Company announced during the period that it had entered into a new five-year £35,000,000 multi-currency loan facility (the "Facility") with the Royal Bank of Scotland plc ("RBS"). This replaced the £30,000,000 loan facility with RBS which expired on 7 October 2014. HKD154,100,000, US$8,680,000 and £7,500,000 loans (£26,085,000 in sterling equivalent) were drawn down under the Facility as at 30 April 2015.
Annual General Meeting
The AGM of the Company will be held on Wednesday 2 September 2015 at 12.00 noon in London, and the Board looks forward to meeting as many shareholders as possible at both the AGM and the subsequent lunch.
As special business at the AGM, the Board is proposing to renew the authority to allot up to 10% of the Company's issued share capital without pre-emption rights applying, and the authority to buy in shares, and either hold them in treasury for future resale (at a premium to net asset value) or cancel them. 214,000 shares were bought back into treasury during the year under review, and, subsequent to the year end, an additional 164,000 shares were bought back into treasury. The Board believes that it is appropriate to retain maximum flexibility in this regard and accordingly shareholders are encouraged to vote in favour of these resolutions.
Outlook
There is continuing attention focused upon an expected increase in US interest rates later this year and importantly how such a programme affects the risk of capital flight from emerging markets. There is however a silver lining as such a move by the Federal Reserve also means that the American economy is well on the road to recovery. This is good news for Asian exporters and a number of these leading names are held within the Company's portfolio. In addition, improving government finances and policies which are becoming clearly stated mean that the region is better placed to withstand any short-term turmoil than has been the case in the past. In the longer term, Asia's appeal remains undimmed. Beijing, despite ongoing concerns over its decelerating economy, has sufficient resources to avert a hard landing and oil prices are expected to stay low for some time, giving policymakers the latitude to enact supportive measures. Coupled with young populations, rising wealth and pent-up demand for consumer goods, these factors should underpin the region's growth prospects for the foreseeable future, and the Company's portfolio is well placed to capitalise on this potential.
David Shearer
Chairman
26 June 2015
STRATEGIC REPORT - INVESTMENT MANAGER'S REVIEW
Market Review
Asian equity markets rebounded smartly from the previous year's weakness to end the review period with double-digit gains. Much of the resurgence can be attributed to the flood of liquidity from extremely accommodative monetary policies pursued by major central banks across the globe. While the US Federal Reserve concluded its asset purchases, the European Central Bank pressed ahead with its quantitative easing programme to avert economic stagnation, and Japan expanded its own massive stimulus to get inflation back to 2%. Several other central banks in the region also joined the wave of aggressive monetary easing to prop up growth as inflationary pressures receded on the back of retreating oil prices. China was one of the boldest in loosening policy: its key lending rates and the amount of cash banks must hold as reserves were trimmed repeatedly in an attempt to rekindle growth.
The decline in oil prices was the game-changer for the conduct of monetary policy. Until recently, all the talk was about growing divergence. Brent crude, a major oil benchmark, collapsed in 2014 and dipped below US$50 a barrel briefly in January. Although crude prices appeared to have found a floor since then, the oil-price slump had a mixed effect across the region. Notably, oil importers such as Indonesia and India benefited, as lower crude prices enabled their governments to remove costly fuel subsidies. However Malaysia, which is an exporter, faced budget constraints. Meanwhile, expectations of an imminent rate rise led the US dollar to appreciate against the sterling and most regional currencies.
Portfolio Review
The Company's net asset value total return per share rose by a robust 17.1% in sterling terms over the year, although it trailed the benchmark index's total return of 22.7%.
The key reason for the relative underperformance was the Company's limited exposure to China, which was the best-performing market in Asia. Loose monetary policy and indications that Beijing was open to more stimulus to boost the decelerating economy fuelled the surge. The long-awaited trading link between the Shanghai and Hong Kong stockmarkets provided a further catalyst. Although initially confined to mainland stocks (known as A-shares), the rally later spilled over to Hong Kong, with Chinese stocks listed there (H-shares) climbing sharply.
Although the mainland authorities clamped down on margin financing, the market's continued ascent raised concerns over a speculative bubble. We treaded cautiously in such a scenario. We do not hold internet company Tencent, and several mainland banks and life insurers that led the rally. A notable example of the market's frothiness was Hanergy Thin Film Power, a stock not held by your Company. Its share price soared over the past year, but then almost halved in just a few hours before trading in the stock was eventually suspended. The inexplicable valuations pre-correction and opaque business operations were classic red flags and underscore the importance of maintaining a level head amid periods of investor mania. The mainland remains an exciting growth story, but thorough due diligence remains crucial to picking the best companies.
The Indian market also performed well, rising by about 25% in sterling terms over the period. As a result, the Company's holding in the Aberdeen Global - Indian Equity Fund contributed to performance. The rupee's strength provided further support. Indian equities rose sharply after lagging for the past two years, largely buoyed by election-fuelled euphoria. Investors were hopeful that the country's flagging economy would be revived after prime minster Narendra Modi and his Bharatiya Janata Party swept the elections last May. Indeed, the economy has started to look more robust than it did a year ago; the worldwide slump in oil prices has helped narrow the current account deficit and inflation receded measurably, providing scope for the central bank to cut interest rates twice over the reporting period. While progress to some reforms has been slow, Modi has made some inroads: the recent dismantling of fuel subsidies, along with the passage of two key bills that lifted foreign ownership in life insurance companies and the re-auction of licences to mine coal commercially are encouraging.
Elsewhere, the lack of exposure to the Australia's big four banks proved rewarding as concerns over their balance sheets and exposure to the overheated housing market weighed on their share prices. The lenders' recent annual results lacked the ebullience of past years, with margins slipping and costs ticking up.
Other than the limited exposure to China weighing on the Company's performance, our commodity-related holdings also came under pressure as iron ore and crude oil prices fell. In Australia, the Company holds diversified mining companies Rio Tinto and BHP Billiton. Both companies have outlined plans to cut costs and capital expenditure in response to the weaker operating environment. In addition, they remain cash generative and have shored up their balance sheets. In the oil and gas sector, the Company holds Thai-listed PTTEP, which suffered a sizeable fall in fourth-quarter earnings, largely due to a partial write-off for its Montara and oil sands projects. However, full-year sales rose and its balance sheet remains healthy. Prospects for Singapore-listed Keppel Corp, one of the world's largest offshore rig builders, were also dampened by cheaper crude and the ensuing reduction in capital expenditure in the oil and gas sector. While near-term investor sentiment will remain weak, our comfort lies in management's proven track record of steering the company through the lean years of previous business cycles.
In Hong Kong, conglomerate Jardine Strategic's stock price lagged because of a weak outlook for its Indonesian business held by its subsidiary Astra International. Indonesia's new administration, led by president Joko Widodo, has gained little traction in reviving domestic growth since taking office late last year. Astra's contribution to the broader group was also hindered by weakness in the rupiah. Despite that, both companies remain well positioned for the long term. Jardine continues to provide a diversified exposure to the Asian consumer, while its Indonesian unit should benefit from easier financing rates and a pick-up in infrastructure spending. Standard Chartered, another laggard, was hindered by a string of missteps, but we remain supportive of the bank's efforts to restructure and refocus its business alongside sweeping change to top management. It will continue to trim costs, conserve capital and divest unprofitable businesses. Standard Chartered remains a strong franchise over the long-term. Its advantage is its peerless focus on emerging markets, replete with banking licences and long-term customer relationships, something that cannot be easily replicated.
Turning to portfolio activity, we remained disciplined to our long-term stock-picking approach instead of reacting to the noise generated by market movements. One of the more pertinent transactions was the introduction of Australia-listed CSL in the first half of the review period. As discussed in the interim report, we initiated a position in the company as it is committed to research and development, has robust quality control and enjoys superior growth and returns because of its highly efficient collection and processing system. It is financially strong and has been enhancing shareholder value by employing its free cashflows for share buybacks. In the second half of the review period, we topped up CSL after its share price suffered a knee-jerk correction on the back of recent results. Its position in non-discretionary medicines and well developed collection and manufacturing process should help it withstand competitive pressures in the near term. Prospects over the longer term remain favourable and the company should continue to deliver robust returns.
We also introduced another two holdings: MTR Corp and China Resources Enterprises (CRE), both with strong operating cash flows. Hong Kong rail operator MTR has expanding businesses in the region, particularly in the mainland. We like its unique rail-and-property model that has enabled it to be among the largest land owners in Hong Kong. CRE is a multi-format retailer in China and Hong Kong, and has a beer joint venture with global brewer SABMiller. While the current operating environment in China is challenging, we are encouraged by the company's solid balance sheet.
Outlook
Although central banks' ultra-accommodative policies have been a vital pillar of support for markets so far, investors are bracing for the normalisation in US interest rates. Asian equity markets will no doubt be tested when the Fed eventually lifts rates for the first time in almost a decade. An extended sell-off, however, is unlikely as the move has been largely priced in. Unless there is a significant jump in US interest rates, which seems unlikely, a modest and gradual rise in borrowing costs is not expected to spark further rounds of monetary tightening in the region. With deflationary threats surfacing in the wake of declining oil prices, there is, instead, more leeway for interest rate cuts.
At the corporate level, the operating environment could remain challenging for some time, given the patchy regional growth. Domestic demand has been constrained by elevated household debt, while China's economic slowdown has hurt exports. Earnings growth is expected to be modest against this backdrop. However, balance sheets and cash flow generation are still healthy. Lower commodity prices and benign inflation should also help steady margins. Many of the Company's holdings, characterised by their broad regional exposure, established franchises and solid finances, are well-positioned for a cyclical upturn over the long term. Meanwhile with the Asian markets trading at an estimated price-to-earnings ratio of around 13 times for 2015, valuations do not seem demanding compared to developed markets.
Aberdeen Asset Management Asia Limited
26 June 2015
STRATEGIC REPORT - RESULTS
Financial Highlights
|
|
30 April 2015 |
30 April 2014 |
% change |
|
Total assets |
£295,483,000 |
£254,174,000 |
+16.3 |
|
Total equity shareholders' funds (net assets) |
£269,398,000 |
£234,762,000 |
+14.8 |
|
Market capitalisation |
£234,057,000 |
£209,239,000 |
|
|
Share price (mid market) |
188.25p |
168.00p |
+12.1 |
|
Net asset value per share |
216.67p |
188.49p |
+15.0 |
|
Discount to net asset value (excluding current year income) |
11.8% |
9.5% |
|
|
Discount to net asset value (including current year income) |
13.1% |
10.9% |
|
|
MSCI AC Asia Pacific ex Japan Index (currency adjusted, capital gains basis) |
625.15 |
525.60 |
+18.9 |
|
Net gearing A |
8.71% |
7.83% |
|
|
Dividend and earnings |
|
|
|
|
Revenue return per share B |
4.18p |
3.79p |
+10.3 |
|
Dividends per share C |
3.80p |
3.60p |
+5.6 |
|
Dividend cover |
1.10 |
1.05 |
|
|
Revenue reserves D |
£12,121,000 |
£11,400,000 |
|
|
Operating costs |
|
|
|
|
Ongoing charges ratio E |
1.08% |
1.09% |
|
|
A Calculated in accordance with AIC guidance "Gearing Disclosures post RDR". |
|||
|
B Measures the total earnings for the year divided by the weighted average number of Ordinary shares in issue (see Income Statement). |
|||
|
C The figures for dividends reflect the years in which they were earned (see note 7) and assume approval of the final dividend. |
|||
|
D Prior to payment of proposed final dividend. |
|||
|
E Ongoing charges ratio has been calculated in accordance with recent guidance issued by the AIC as the total of the management fee and administrative expenses divided by the average cum income net asset value throughout the year. |
|||
Performance (total return)
|
|
1 year return |
3 year return |
5 year return |
|
|
% |
% |
% |
|
Share price |
+14.3 |
+24.0 |
+42.7 |
|
Net asset value |
+17.1 |
+26.6 |
+45.4 |
|
MSCI AC Asia Pacific ex Japan Index (currency adjusted) |
+22.7 |
+35.3 |
+39.8 |
Dividends
|
|
Rate |
xd date |
Record date |
Payment date |
|
Interim 2015 |
1.00p |
8 January 2015 |
9 January 2015 |
30 January 2015 |
|
Proposed final 2015 |
2.80p |
6 August 2015 |
7 August 2015 |
4 September 2015 |
|
|
_______ |
|
|
|
|
Total 2015 |
3.80p |
|
|
|
|
|
_______ |
|
|
|
|
Interim 2014 A |
1.00p |
8 January 2014 |
10 January 2014 |
31 January 2014 |
|
Final 2014 |
2.60p |
6 August 2014 |
8 August 2014 |
5 September 2014 |
|
|
_______ |
|
|
|
|
Total 2014 |
3.60p |
|
|
|
|
|
_______ |
|
|
|
|
|
|
|
|
|
|
A Figures have been restated to reflect the 5:1 sub-division on 3 September 2013. |
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Ten Year Financial Record
|
Year to 30 April |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Total revenue (£'000) |
3,345 |
4,027 |
4,301 |
4,734 |
4,372 |
5,752 |
6,799 |
6,562 |
6,819 |
7,412 |
|
Per share (p) A |
|
|
|
|
|
|
|
|
|
|
|
Net revenue return |
1.32 |
1.53 |
1.63 |
2.10 |
2.37 |
3.17 |
3.97 |
3.89 |
3.79 |
4.18 |
|
Total return |
35.16 |
10.01 |
20.30 |
(30.64) |
66.34 |
26.44 |
(2.72) |
33.49 |
(18.68) |
31.74 |
|
Net dividends paid/proposed B |
1.00 |
1.11 |
1.20 |
1.60 |
2.00 |
2.50 |
3.30 |
3.40 |
3.60 |
3.80 |
|
Net asset value per share |
100.77 |
109.77 |
129.26 |
97.42 |
162.16 |
186.60 |
181.38 |
210.57 |
188.49 |
216.67 |
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
Equity shareholders' funds (£'000) |
127,907 |
139,342 |
160,993 |
121,339 |
201,969 |
232,406 |
225,908 |
262,263 |
234,762 |
269,398 |
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
|
|
|
|
|
|
|
|
|
|
|
A Figures for 2005-2013 have been restated to reflect the 5:1 sub-division on 3 September 2013. |
||||||||||
|
B The figures for dividends have not been restated and still reflect the dividend for the years in which it was earned. |
||||||||||
Investment Portfolio - Ten Largest Investments
As at 30 April 2015
|
|
|
|
Valuation |
Total |
Valuation |
|
|
|
|
2015 |
assets A |
2014 |
|
Company |
Industry |
Country |
£'000 |
% |
£'000 |
|
Aberdeen Global - Indian Equity Fund |
|
|
29,920 |
10.1 |
29,383 |
|
A tax-efficient pooled India fund with a long-term investment approach managed by the same team managing the Company. There is no double-charging of management fees. |
Collective Investment Scheme |
India |
|
|
|
|
Samsung Electronics Pref |
|
|
14,244 |
4.8 |
12,238 |
|
A leading semiconductor company which is also a major player in mobile phones and TFT-LCDs. The Company owns the preferred shares, which trade at a discount to the ordinary shares. |
Semiconductors & Semiconductor Equipment |
South Korea |
|
|
|
|
Oversea-Chinese Banking Corporation |
|
|
12,866 |
4.4 |
10,273 |
|
A Singapore lender that is evolving into a regional financial services firm, with a meaningful presence in Southeast Asia. Its acquisition of Wing Hang Bank, subject to regulatory approval, will also give it access to greater China and the offshore yuan market, augmented by its stake in Bank of Ningbo. |
Banks |
Singapore |
|
|
|
|
Jardine Strategic Holdings |
|
|
12,750 |
4.3 |
10,848 |
|
A Hong Kong conglomerate with regional interests in retail, property, hotels and auto distribution. It provides the Company with a diversified exposure to the Asian consumer, backed by good distribution networks, established franchises and a decent valuation. |
Industrial Conglomerates |
Hong Kong |
|
|
|
|
AIA Group |
|
|
10,100 |
3.4 |
6,671 |
|
A leading pan-Asian life insurance company, it is poised to take advantage of Asia's growing affluence, backed by an effective agency force and solid fundamentals. |
Insurance |
Hong Kong |
|
|
|
|
HSBC Holdings |
|
|
10,056 |
3.4 |
8,161 |
|
One of the world's largest banking and financial services institutions with a global network. Its roots and the majority of its earnings are derived from Asia and, after several poor acquisitions in Europe and the US, it is refocusing on its core strengths. |
Banks |
Hong Kong |
|
|
|
|
Taiwan Semiconductor Manufacturing Company |
|
|
9,858 |
3.4 |
8,782 |
|
The world's largest dedicated semiconductor foundry, it provides wafer manufacturing, wafer probing, assembly and testing, mask production and design services. |
Semiconductors & Semiconductor Equipment |
Taiwan |
|
|
|
|
Ayala Land |
|
|
9,787 |
3.3 |
7,984 |
|
A leading property developer in the Philippines with an attractive land bank, well-respected brand and expertise across residential, commercial & retail sectors. |
Real Estate Management & Development |
Philippines |
|
|
|
|
China Mobile |
|
|
9,546 |
3.2 |
7,206 |
|
The largest mobile telecoms operator in China, boasting a robust balance sheet, healthy cash flows and good growth prospects driven by the transition to 4G technology. |
Wireless Telecommunication Services |
China |
|
|
|
|
United Overseas Bank |
|
|
9,435 |
3.2 |
7,855 |
|
A well-run Singapore lender that enjoys quality loan growth and decent risk management. The bank also looks good in regional terms with a strong capital base and impressive cost-to-income ratio. |
Banks |
Singapore |
|
|
|
|
Top ten investments |
|
|
128,562 |
43.5 |
|
Investment Portfolio - Other Investments
As at 30 April 2015
|
|
|
|
Valuation |
Total |
Valuation |
|
|
|
|
2015 |
assets A |
2014 |
|
Company |
Industry |
Country |
£'000 |
% |
£'000 |
|
City Developments |
Real Estate Management & Development |
Singapore |
9,238 |
3.1 |
7,800 |
|
BHP Billiton (London listing) |
Metals & Mining |
Australia |
8,921 |
3.0 |
8,770 |
|
Rio Tinto (London Listing) |
Metals & Mining |
Australia |
8,911 |
3.0 |
9,653 |
|
QBE Insurance Group |
Insurance |
Australia |
8,839 |
3.0 |
7,164 |
|
Standard Chartered (London listing) |
Banks |
UK |
8,813 |
3.0 |
7,319 |
|
Siam Cement (Foreign) |
Construction Materials |
Thailand |
8,605 |
2.9 |
5,452 |
|
Swire Pacific B |
Industrial Conglomerates |
Hong Kong |
8,452 |
2.9 |
6,722 |
|
Singapore Telecommunication |
Diversified Telecommunication Services |
Singapore |
7,709 |
2.6 |
6,398 |
|
PetroChina H Shares |
Oil, Gas & Consumable Fuels |
China |
7,704 |
2.6 |
6,776 |
|
Singapore Technologies Engineering |
Aerospace & Defence |
Singapore |
7,155 |
2.4 |
5,808 |
|
Top twenty investments |
|
|
212,909 |
72.0 |
|
|
Keppel Corporation |
Industrial Conglomerates |
Singapore |
6,427 |
2.2 |
5,653 |
|
Taiwan Mobile |
Wireless Telecommunication Services |
Taiwan |
4,577 |
1.5 |
3,810 |
|
Swire Properties |
Real Estate Management & Development |
Hong Kong |
4,244 |
1.4 |
3,297 |
|
New India Inv. Trust |
Investment/Unit Trusts |
India |
4,170 |
1.4 |
2,922 |
|
Woolworths |
Food & Staples Retailing |
Australia |
4,077 |
1.4 |
4,645 |
|
Dairy Farm International |
Food & Staples Retailing |
Hong Kong |
3,441 |
1.2 |
3,416 |
|
DBS Group Holdings |
Banks |
Singapore |
3,330 |
1.1 |
2,485 |
|
Li & Fung |
Textiles, Apparel & Luxury Goods |
Hong Kong |
3,322 |
1.1 |
2,947 |
|
E-Mart |
Food & Staples Retailing |
South Korea |
3,253 |
1.1 |
2,258 |
|
Unilever Indonesia |
Household Products |
Indonesia |
3,131 |
1.1 |
2,194 |
|
Top thirty investments |
|
|
252,881 |
85.5 |
|
|
CIMB Group Holdings |
Banks |
Malaysia |
3,110 |
1.1 |
3,223 |
|
Hang Lung Group |
Real Estate Management & Development |
Hong Kong |
3,033 |
1.0 |
2,806 |
|
CSL |
Biotechnology |
Australia |
3,031 |
1.0 |
- |
|
Aberdeen Asian Smaller Companies Inv. Trust C |
Investment/Unit Trusts |
Other Asia |
2,920 |
1.0 |
2,822 |
|
Venture Corp |
Electronic Equipment, Instruments & Components |
Singapore |
2,902 |
1.0 |
2,533 |
|
Hang Lung Properties |
Real Estate Management & Development |
Hong Kong |
2,899 |
1.0 |
1,490 |
|
Public Bank Berhad |
Banks |
Malaysia |
2,879 |
1.0 |
3,150 |
|
John Keells Holdings D |
Industrial Conglomerates |
Sri Lanka |
2,725 |
0.9 |
2,948 |
|
PTT Exploration & Production (Foreign) |
Oil, Gas & Consumable Fuels |
Thailand |
2,404 |
0.8 |
4,828 |
|
M.P. Evans Group |
Food Products |
Indonesia |
2,355 |
0.8 |
2,484 |
|
Top forty investments |
|
|
281,139 |
95.1 |
|
|
Aitken Spence & Co. |
Industrial Conglomerates |
Sri Lanka |
2,209 |
0.8 |
2,005 |
|
ASM Pacific Technology |
Semiconductors & Semiconductor Equipment |
Hong Kong |
2,193 |
0.7 |
3,670 |
|
China Resources Enterprise |
Food & Staples Retailing |
China |
2,034 |
0.7 |
- |
|
DFCC Bank |
Banks |
Sri Lanka |
1,873 |
0.6 |
1,290 |
|
National Development Bank |
Banks |
Sri Lanka |
1,166 |
0.4 |
776 |
|
MTR Corporation |
Road & Rail |
Hong Kong |
869 |
0.3 |
- |
|
Total investments |
|
|
291,483 |
98.6 |
|
|
Net current assets E |
|
|
4,000 |
1.4 |
|
|
Total assets A |
|
|
295,483 |
100.0 |
|
|
A Total assets less current liabilities (before deducting prior charges). |
|||||
|
B Holding merges two equity holdings, with values split as follows: A shares £562,000 (2014 - £437,000) and B shares £7,890,000 (2014 - £6,285,000). |
|||||
|
C Holding comprises equity and convertible unsecured loan stock split £2,413,000 (2014 - £2,322,000) and £507,000 (2014 - £500,000). |
|||||
|
D Holding comprises equity and two warrants £2,687,000 (2014 - £2,873,000), £23,000 (2014 - £39,000) and £15,000 (2014 - £36,000). |
|||||
|
E Excluding bank loans of £26,085,000. |
|||||
|
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings. |
|||||
Changes in Asset Distributions
|
|
Value at |
|
Sales |
Appreciation/ |
Value at |
|
|
30 April 2014 |
Purchases |
proceeds |
(depreciation) |
30 April 2015 |
|
Country |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Australia |
30,232 |
6,591 |
- |
(3,044) |
33,779 |
|
China |
13,982 |
1,403 |
2,376 |
6,275 |
19,284 |
|
Hong Kong |
53,104 |
5,402 |
5,268 |
8,121 |
61,359 |
|
India |
32,305 |
- |
9,200 |
10,985 |
34,090 |
|
Indonesia |
4,678 |
47 |
- |
761 |
5,486 |
|
Malaysia |
6,373 |
927 |
545 |
(766) |
5,989 |
|
Other Asia |
2,822 |
- |
- |
98 |
2,920 |
|
Philippines |
7,984 |
- |
1,286 |
3,089 |
9,787 |
|
Singapore |
48,923 |
6,027 |
1,024 |
5,136 |
59,062 |
|
South Korea |
14,496 |
1,520 |
1,730 |
3,211 |
17,497 |
|
Sri Lanka |
7,019 |
- |
- |
954 |
7,973 |
|
Taiwan |
12,592 |
- |
- |
1,843 |
14,435 |
|
Thailand |
10,280 |
993 |
1,836 |
1,572 |
11,009 |
|
United Kingdom |
7,319 |
2,652 |
- |
(1,158) |
8,813 |
|
Total investments |
252,109 |
25,562 |
23,265 |
37,077 |
291,483 |
|
Net current assets A |
2,065 |
- |
- |
1,935 |
4,000 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
|
Total assets less current liabilities |
254,174 |
25,562 |
23,265 |
39,012 |
295,483 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
A Excluding bank loans of £26,085,000. |
|||||
DIRECTORS' REPORT
Introduction
The Board of Directors, David Shearer (Chairman), Nicholas George, John Lorimer and Hugh Young held office throughout the whole year under review. Susie Rippingall was appointed to the Board on 1 July 2014 and Ms Manners retired from the Board on 30 June 2014. The Directors present their report and audited financial statements for the year ended 30 April 2015.
The Company and its Objective
The Company is an investment trust and its Ordinary shares are listed on the premium segment of the Official List of the UK Listing Authority and traded on the London Stock Exchange. The Company's objective is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan. A review of the Company's activities is given in the Strategic Report. This includes the overall strategy of the business of the Company and its principal activities, main risks faced by the Company, likely future developments of the business and the recommended dividend.
Status
The Company is an investment company, within the terms of Section 833 of the Companies Act 2006 and carries on business as an investment trust. The Company is registered as a public limited company in England & Wales. The Company has no employees and the Company's registration number is 02377879.
The Company has been accepted by HM Revenue & Customs as an investment trust subject to the Company continuing to meet the relevant eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of Part 2 Chapter 3 Statutory Instrument 2011/2999 for all financial years commencing on or after 1 May 2012. The Directors are of the opinion that the Company has conducted its affairs for the year ended 30 April 2015 so as to enable it to comply with the ongoing requirements for investment trust status.
The affairs of the Company were conducted in such a way as to satisfy the requirements as a qualifying security for Individual Savings Accounts. The Directors intend that the Company will continue to conduct its affairs in this manner in the future.
Results and Dividends
The interim dividend for the year ended 30 April 2015 of 1.0p per Ordinary share each was paid on 30 January 2015.
The Directors recommend a final dividend of 2.8p per Ordinary share payable on 4 September 2015 to holders of Ordinary shares on the register on 7 August 2015. The relevant ex-dividend date is 6 August 2015. A resolution in respect of the final dividend will be proposed at the forthcoming Annual General Meeting.
Management Agreement
To comply with the Alternative Investment Fund Managers Directive, the Company's investment management arrangements with the Aberdeen Group have been reorganised. The Company has appointed Aberdeen Fund Managers Limited, a wholly owned subsidiary of Aberdeen Asset Management PLC, as its alternative investment fund manager with effect from 15 July 2014. In order to facilitate this appointment, the Company terminated its existing investment management agreement with Aberdeen Asset Management Asia Limited and entered into a new management agreement with AFML. The new management agreement with AFML is on the same commercial terms as the previous agreement with AAM Asia and complies with the new AIFMD regulatory regime. Under the new arrangements, AFML has been appointed to provide investment management, risk management, administration and company secretarial services to the Company as well as carry out promotional activities on the Company's behalf. The Company's portfolio will continue to be managed by AAM Asia by way of a group delegation agreement in place between AFML and AAM Asia. In addition, AFML has sub-delegated promotional activities to Aberdeen Asset Managers Limited and administrative and secretarial services to Aberdeen Asset Management PLC. Fees payable are shown in note 4 to the financial statements.
The management fee, details of which are shown in note 3 to the financial statements, is calculated monthly in arrears at 1% on an annual basis of the net asset value of the Company valued monthly excluding funds managed by the Aberdeen Group of companies. The management agreement is terminable on not less than 12 months' notice.
The Directors review the terms of the management agreement on an annual basis and have confirmed that, due to the investment skills, experience of the Investment Manager and its long-term relative performance, in their opinion the continuing appointment of the AIFM (and therefore the Investment Manager), on the terms agreed, is in the interests of shareholders as a whole.
Going Concern
The Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale. The Board has set limits for borrowing and regularly reviews cash flow projections and compliance with banking covenants. The Company's Directors believe that, after making enquiries, the Company has adequate resources to continue its operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Accountability and Audit
Each Director confirms that, so far as he or she (hereinafter referred to as "he") is aware, there is no relevant audit information of which the Company's auditor is unaware, and he has taken all the steps that he would reasonably be expected to have taken as a Director in order to make himself aware of any relevant audit information and to establish that the Company's auditor is aware of that information. Additionally, there are no important events since the year end.
By order of the Board
Aberdeen Asset Management PLC
Company Secretary
26 June 2015
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the financial statements, in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with UK Accounting Standards.
The financial statements are required by law to give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Statement of Corporate Governance that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
We confirm that to the best of our knowledge:
- the financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
- that in the opinion of the Directors, the Annual Report and Accounts taken as a whole, is fair, balanced and understandable and it provides the information necessary to assess the Company's performance, business model and strategy; and
- the Strategic Report and Directors' Report include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces.
For Aberdeen New Dawn Investment Trust PLC
David Shearer
Chairman
26 June 2015
INCOME STATEMENT
|
|
|
Year ended 30 April 2015 |
Year ended 30 April 2014 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Gains/(losses) on investments held at fair value through profit or loss |
9 |
- |
37,077 |
37,077 |
- |
(28,193) |
(28,193) |
|
Income |
2 |
7,412 |
- |
7,412 |
6,819 |
- |
6,819 |
|
Management fee |
3 |
(954) |
(954) |
(1,908) |
(916) |
(916) |
(1,832) |
|
Administrative expenses |
4 |
(835) |
- |
(835) |
(798) |
- |
(798) |
|
Exchange (losses)/gains |
|
- |
(1,605) |
(1,605) |
- |
1,310 |
1,310 |
|
|
|
_______ |
_______ |
______ |
_______ |
______ |
_______ |
|
Net return on ordinary activities before finance costs and taxation |
|
5,623 |
34,518 |
40,141 |
5,105 |
(27,799) |
(22,694) |
|
|
|
|
|
|
|
|
|
|
Interest payable and similar charges |
5 |
(204) |
(204) |
(408) |
(185) |
(185) |
(370) |
|
|
|
_______ |
_______ |
______ |
_______ |
______ |
_______ |
|
Return on ordinary activities before taxation |
|
5,419 |
34,314 |
39,733 |
4,920 |
(27,984) |
(23,064) |
|
|
|
|
|
|
|
|
|
|
Taxation |
6 |
(214) |
- |
(214) |
(202) |
- |
(202) |
|
|
|
_______ |
_______ |
______ |
_______ |
______ |
_______ |
|
Return on ordinary activities after taxation |
|
5,205 |
34,314 |
39,519 |
4,718 |
(27,984) |
(23,266) |
|
|
|
_______ |
_______ |
______ |
_______ |
______ |
_______ |
|
|
|
|
|
|
|
|
|
|
Return per Ordinary share (pence) |
8 |
4.18 |
27.56 |
31.74 |
3.79 |
(22.47) |
(18.68) |
|
|
|
_______ |
_______ |
______ |
_______ |
______ |
_______ |
|
|
|
|
|
|
|
|
|
|
The total column of this statement represents the profit and loss account of the Company. |
|||||||
|
A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement. |
|||||||
|
All revenue and capital items are derived from continuing operations. |
|||||||
|
The accompanying notes are an integral part of the financial statements. |
|||||||
BALANCE SHEET
|
|
|
As at |
As at |
|
|
|
30 April 2015 |
30 April 2014 |
|
|
Notes |
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
Investments at fair value through profit or loss |
9 |
291,483 |
252,109 |
|
|
|
_________ |
_________ |
|
Current assets |
|
|
|
|
Loans and receivables |
10 |
1,952 |
1,596 |
|
Cash at bank and in hand |
16 |
2,614 |
1,037 |
|
|
|
_________ |
_________ |
|
|
|
4,566 |
2,633 |
|
|
|
_________ |
_________ |
|
Creditors: amounts falling due within one year |
11 |
|
|
|
Loans |
|
(21,085) |
(19,412) |
|
Other creditors |
|
(566) |
(568) |
|
|
|
_________ |
_________ |
|
|
|
(21,651) |
(19,980) |
|
|
|
_________ |
_________ |
|
Net current liabilities |
|
(17,085) |
(17,347) |
|
|
|
_________ |
_________ |
|
Total assets less current liabilities |
|
274,398 |
234,762 |
|
|
|
|
|
|
Creditors: amounts falling due after more than one year |
11 |
|
|
|
Loans |
|
(5,000) |
- |
|
|
|
_________ |
_________ |
|
Net assets |
|
269,398 |
234,762 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
Share capital and reserves |
|
|
|
|
Called-up share capital |
12 |
6,347 |
6,347 |
|
Share premium account |
|
17,955 |
17,955 |
|
Special reserve |
|
11,218 |
11,617 |
|
Capital redemption reserve |
|
10,207 |
10,207 |
|
Capital reserve |
13 |
211,550 |
177,236 |
|
Revenue reserve |
|
12,121 |
11,400 |
|
|
|
_________ |
_________ |
|
Equity shareholders' funds |
|
269,398 |
234,762 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
Net asset value per Ordinary share (pence) |
14 |
216.67p |
188.49p |
|
|
|
_________ |
_________ |
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
|
For the year ended 30 April 2015 |
|
|
|
|
|
|
|
|
|
|
Share |
|
Capital |
|
|
|
|
|
Share |
premium |
Special |
redemption |
Capital |
Revenue |
|
|
|
capital |
account |
reserve |
reserve |
reserve |
reserve |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 30 April 2014 |
6,347 |
17,955 |
11,617 |
10,207 |
177,236 |
11,400 |
234,762 |
|
Purchase of own shares |
- |
- |
(399) |
- |
- |
- |
(399) |
|
Return on ordinary activities after taxation |
- |
- |
- |
- |
34,314 |
5,205 |
39,519 |
|
Dividends paid (see note 7) |
- |
- |
- |
- |
- |
(4,484) |
(4,484) |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
Balance at 30 April 2015 |
6,347 |
17,955 |
11,218 |
10,207 |
211,550 |
12,121 |
269,398 |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
For the year ended 30 April 2014 |
|
|
|
|
|
|
|
|
|
|
Share |
|
Capital |
|
|
|
|
|
Share |
premium |
Special |
redemption |
Capital |
Revenue |
|
|
|
capital |
account |
reserve |
reserve |
reserve |
reserve |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 30 April 2013 |
6,347 |
17,955 |
11,617 |
10,207 |
205,220 |
10,917 |
262,263 |
|
Return on ordinary activities after taxation |
- |
- |
- |
- |
(27,984) |
4,718 |
(23,266) |
|
Dividends paid (see note 7) |
- |
- |
- |
- |
- |
(4,235) |
(4,235) |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
Balance at 30 April 2014 |
6,347 |
17,955 |
11,617 |
10,207 |
177,236 |
11,400 |
234,762 |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
CASH FLOW STATEMENT
|
|
|
Year ended |
Year ended |
||
|
|
|
30 April 2015 |
30 April 2014 |
||
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|
Net cash inflow from operating activities |
15 |
|
4,374 |
|
4,695 |
|
|
|
|
|
|
|
|
Servicing of finance |
|
|
|
|
|
|
Bank and loan interest paid |
|
|
(412) |
|
(365) |
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
Net tax paid |
|
|
(214) |
|
(202) |
|
|
|
|
|
|
|
|
Financial investment |
|
|
|
|
|
|
Purchases of investments |
|
(25,621) |
|
(14,638) |
|
|
Sales of investments |
|
23,265 |
|
14,650 |
|
|
|
|
_______ |
|
_______ |
|
|
Net cash (outflow)/inflow from financial investment |
|
|
(2,356) |
|
12 |
|
|
|
|
|
|
|
|
Equity dividends paid |
|
|
(4,484) |
|
(4,235) |
|
|
|
|
_______ |
|
_______ |
|
Net cash outflow before financing |
|
|
(3,092) |
|
(95) |
|
|
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
Purchase of own shares |
|
|
(399) |
|
- |
|
Loans drawdown |
|
|
5,000 |
|
- |
|
|
|
|
_______ |
|
_______ |
|
Net cash inflow from financing |
|
|
4,601 |
|
- |
|
|
|
|
_______ |
|
_______ |
|
Increase/(decrease) in cash |
16 |
|
1,509 |
|
(95) |
|
|
|
|
_______ |
|
_______ |
|
Reconciliation of net cash flow to movements in net debt |
|
|
|
|
|
|
Increase/(decrease) in cash as above |
|
|
1,509 |
|
(95) |
|
Drawdown of loan |
|
|
(5,000) |
|
- |
|
Exchange movements |
|
|
(1,605) |
|
1,310 |
|
|
|
|
_______ |
|
_______ |
|
Movement in net debt in the year |
|
|
(5,096) |
|
1,215 |
|
Opening net debt |
|
|
(18,375) |
|
(19,590) |
|
|
|
|
_______ |
|
_______ |
|
Closing net debt |
16 |
|
(23,471) |
|
(18,375) |
|
|
|
|
_______ |
|
_______ |
NOTES TO THE FINANCIAL STATEMENTS:
|
1. |
Accounting policies |
|
|
|
(a) |
Basis of accounting |
|
|
|
The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments and in accordance with the applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. |
|
|
|
|
|
|
|
The Directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. Further detail is included in the Directors' Report (unaudited). |
|
|
|
|
|
|
|
The financial statements, and the net asset value per share figures, have been prepared in accordance with UK Generally Accepted Accounting Practice ('UK GAAP'). |
|
|
|
|
|
|
(b) |
Valuation of investments |
|
|
|
Listed investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised on the trade date at cost. Subsequent to initial recognition, investments are valued at fair value which for listed investments is deemed to be bid market prices. Gains and losses arising from changes in fair value are included as a capital item in the Income Statement and are ultimately recognised in the capital reserve. |
|
|
|
|
|
|
(c) |
Income |
|
|
|
Dividends, including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a time apportioned basis so as to reflect the effective yield on shares. Other returns on non-equity shares are recognised when the right to return is established. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital reserves. Interest receivable on bank balances is dealt with on an accruals basis. |
|
|
|
|
|
|
(d) |
Expenses |
|
|
|
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Income Statement except as follows: |
|
|
|
-expenses directly relating to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds. Such transaction costs are disclosed in accordance with the SORP. These expenses are charged to the capital column of the Income Statement and are separately identified and disclosed in note 9; and |
|
|
|
-the Company charges 50% of investment management fees and finance costs to the capital column of the Income Statement, in accordance with the Board's expected long term return in the form of capital gains and income respectively from the investment portfolio of the Company. |
|
|
|
|
|
|
(e) |
Deferred taxation |
|
|
|
Deferred taxation is provided on all timing differences, that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Balance Sheet date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments. |
|
|
|
|
|
|
(f) |
Capital reserves |
|
|
|
Gains and losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve. |
|
|
|
|
|
|
(g) |
Foreign currencies |
|
|
|
Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Balance Sheet date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Income Statement and are then transferred to the capital reserve. |
|
|
|
|
|
|
(h) |
Dividends payable |
|
|
|
Interim and final dividends are dealt with in the period in which they are paid. |
|
|
|
2015 |
2014 |
|
2. |
Income |
£'000 |
£'000 |
|
|
Income from investments |
|
|
|
|
UK dividend income |
1,575 |
1,186 |
|
|
UK unfranked investment income |
16 |
9 |
|
|
Overseas dividends |
4,912 |
5,126 |
|
|
Scrip dividends |
906 |
495 |
|
|
|
_______ |
_______ |
|
|
|
7,409 |
6,816 |
|
|
|
_______ |
_______ |
|
|
Other income |
|
|
|
|
Deposit interest |
3 |
3 |
|
|
|
_______ |
_______ |
|
|
Total income |
7,412 |
6,819 |
|
|
|
_______ |
_______ |
|
|
|
2015 |
2014 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
3. |
Management fee |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Management fee |
954 |
954 |
1,908 |
916 |
916 |
1,832 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
For the year ended 31 March 2015 management and secretarial services were provided by Aberdeen Asset Managers Asia Limited ("AAMAL") until 14 July 2014 and thereafter by Aberdeen Fund Managers Limited ("AFML"). There were no changes to the commercial arrangements. Under the terms of an agreement effective from 15 July 2014 (which replaced the existing arrangements with AAMAL), the Company has appointed AFML to provide management, accounting, administrative and secretarial duties. |
||||||
|
|
|
||||||
|
|
During the year the management fee was payable monthly in arrears and was based on an annual amount of 1% of the net asset value of the Company valued monthly, with the following provisions for commonly managed funds: |
||||||
|
|
-the Company's investments in Aberdeen Global - Indian Equity Fund, Aberdeen Asian Smaller Companies Investment Trust and New India Investment Trust are excluded from the calculation of the investment management fee. The total value of such commonly managed funds, on a mid basis (basis on which management fee is calculated), at the year end was £37,016,000 (2014 - £35,137,000). |
||||||
|
|
-the Company receives a rebate from the Manager for the amount of fees in excess of 1% of net assets charged by the Manager for any commonly managed fund. |
||||||
|
|
|
||||||
|
|
The balance due to AFML at the year end, net of any rebates was £342,000 (2014 - £292,000). |
||||||
|
|
|
||||||
|
|
The agreement is terminable by either party on one year's notice to the other. |
||||||
|
|
|
2015 |
2014 |
|
4. |
Administrative expenses |
£'000 |
£'000 |
|
|
Promotional activities |
225 |
216 |
|
|
Directors' fees |
136 |
136 |
|
|
Safe custody fees |
110 |
100 |
|
|
Auditor's remuneration: |
|
|
|
|
fees payable to the Company's auditor for the audit of the Company's annual accounts |
15 |
14 |
|
|
fees payable to the Company's auditor for the review of the Company's half yearly accounts |
4 |
4 |
|
|
Other administration expenses |
345 |
328 |
|
|
|
_______ |
_______ |
|
|
|
835 |
798 |
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
The Company has an agreement with Aberdeen Asset Managers Limited ('AAM') for the provision of promotional activities in relation to the Company's participation in the Aberdeen Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement were £225,000 (2014 - £216,000) and the sum due to AAM at the year end was £75,000 (2014 - £75,000). |
||
|
|
|
||
|
|
No pension contributions were made in respect of any of the Directors. |
||
|
|
|
||
|
|
The Company does not have any employees. |
||
|
|
|
2015 |
2014 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
5. |
Interest payable and similar charges |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
On bank loans and overdrafts |
204 |
204 |
408 |
185 |
185 |
370 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
2015 |
2014 |
|||||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|||
|
6. |
Taxation |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||
|
|
(a) |
Analysis of charge for the year |
|
|
|
|
|
|
||
|
|
|
Overseas tax |
258 |
- |
258 |
258 |
- |
258 |
||
|
|
|
Overseas tax reclaimable |
(44) |
- |
(44) |
(56) |
- |
(56) |
||
|
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
||
|
|
|
Current tax charge for the year |
214 |
- |
214 |
202 |
- |
202 |
||
|
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
||
|
|
|
|
|
|
|
|
|
|
||
|
|
(b) |
Factors affecting the tax charge for the year |
||||||||
|
|
|
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. |
||||||||
|
|
|
|
||||||||
|
|
|
|
2015 |
2014 |
||||||
|
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
||
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
|
Net profit/(loss) on ordinary activities before taxation |
5,419 |
34,314 |
39,733 |
4,920 |
(27,984) |
(23,064) |
||
|
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
||
|
|
|
|
|
|
||||||
|
|
|
|
2015 |
2014 |
||||||
|
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
||
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
|
Corporation tax at effective rate of 20.92% (2014 - 22.83%) |
1,134 |
7,178 |
8,312 |
1,123 |
(6,389) |
(5,266) |
||
|
|
|
Effects of: |
|
|
|
|
|
- |
||
|
|
|
Non-taxable UK dividend income |
(374) |
- |
(374) |
(328) |
- |
(328) |
||
|
|
|
Non-taxable overseas dividends |
(1,161) |
- |
(1,161) |
(1,212) |
- |
(1,212) |
||
|
|
|
Accrued income not taxable |
- |
- |
- |
(1) |
- |
(1) |
||
|
|
|
Overseas tax suffered |
214 |
- |
214 |
202 |
- |
202 |
||
|
|
|
Surplus management expenses and loan relationship deficits not relieved |
401 |
243 |
644 |
418 |
252 |
670 |
||
|
|
|
Non-taxable exchange losses/(gains) |
- |
336 |
336 |
- |
(299) |
(299) |
||
|
|
|
Non-taxable (gains)/losses on investments |
- |
(7,757) |
(7,757) |
- |
6,436 |
6,436 |
||
|
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
||
|
|
|
Current tax charge |
214 |
- |
214 |
202 |
- |
202 |
||
|
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
||
|
|
|
|
|
|
|
|
|
|
||
|
|
(c) |
Provision for deferred taxation |
||||||||
|
|
|
No provision for deferred taxation has been made in the current year or in the prior year. |
||||||||
|
|
|
|
||||||||
|
|
|
The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of investments as it is exempt from tax on these items because of its status as an investment trust company. |
||||||||
|
|
|
|
||||||||
|
|
(d) |
Factors that may affect future tax charges |
||||||||
|
|
|
At the year end, the Company has an unrecognised deferred tax asset of £2,903,000 (2014 - £2,288,000) arising as a result of excess management expenses and non-trade loan relationship deficits. These expenses will only be utilised if the Company has profits chargeable to corporation tax in the future. |
||||||||
|
|
|
2015 |
2014 |
|
7. |
Dividends |
£'000 |
£'000 |
|
|
Amounts recognised as distributions to equity holders in the period: |
|
|
|
|
Final dividend for 2014 - 2.6p (2013 - 2.4p) |
3,238 |
2,989 |
|
|
Interim dividend for 2015 - 1.0p (2014 - 1.0p) |
1,246 |
1,246 |
|
|
|
_______ |
_______ |
|
|
|
4,484 |
4,235 |
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
The proposed final dividend for 2015 is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. |
||
|
|
|
||
|
|
The table below sets out the proposed final dividend, together with the interim dividend paid, in respect of the financial year, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £5,205,000 (2014 - £4,718,000). |
||
|
|
|
|
|
|
|
|
2015 |
2014 |
|
|
|
£'000 |
£'000 |
|
|
Interim dividend for 2015 - 1.0p (2014 - 1.0p) |
1,246 |
1,246 |
|
|
Proposed final dividend for 2015 - 2.8p (2014 - 2.6p) |
3,481 |
3,238 |
|
|
|
_______ |
_______ |
|
|
|
4,727 |
4,484 |
|
|
|
_______ |
_______ |
Subsequent to the year end the Company has purchased for treasury a further 164,000 Ordinary shares; therefore the amounts reflected above for the cost of the proposed final dividend for 2015 are based on 124,169,010 Ordinary shares in issue, being the number of Ordinary shares in issue at the date of this report.
|
|
|
2015 |
2014 |
||
|
8. |
Return per Ordinary share |
£'000 |
p |
£'000 |
p |
|
|
Revenue return |
5,205 |
4.18 |
4,718 |
3.79 |
|
|
Capital return |
34,314 |
27.56 |
(27,984) |
(22.47) |
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
Total return |
39,519 |
31.74 |
(23,266) |
(18.68) |
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
Weighted average number of Ordinary shares in issue A |
|
124,516,857 |
|
124,547,010 |
|
|
A Calculated excluding shares held in treasury. |
|
__________ |
|
__________ |
|
|
|
Listed |
Listed |
|
|
|
|
overseas |
in UK |
Total |
|
9. |
Investments |
£'000 |
£'000 |
£'000 |
|
|
Fair value through profit or loss: |
|
|
|
|
|
Opening book cost |
106,720 |
25,831 |
132,551 |
|
|
Opening fair value gains on investments held |
111,419 |
8,139 |
119,558 |
|
|
|
_______ |
_______ |
_______ |
|
|
Opening valuation |
218,139 |
33,970 |
252,109 |
|
|
Movements in the year: |
|
|
|
|
|
Purchases at cost |
20,681 |
4,881 |
25,562 |
|
|
Sales - proceeds |
(23,265) |
- |
(23,265) |
|
|
Sales - realised gains |
16,269 |
- |
16,269 |
|
|
Current year fair value gains/(losses) on investments held |
23,568 |
(2,760) |
20,808 |
|
|
|
_______ |
_______ |
_______ |
|
|
Closing valuation |
255,392 |
36,091 |
291,483 |
|
|
|
_______ |
_______ |
_______ |
|
|
Closing book cost |
120,405 |
30,712 |
151,117 |
|
|
Closing fair value gains on investments held |
134,987 |
5,379 |
140,366 |
|
|
|
_______ |
_______ |
_______ |
|
|
|
255,392 |
36,091 |
291,483 |
|
|
|
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
2015 |
2014 |
|
|
|
|
£'000 |
£'000 |
|
|
|
Investments listed on an overseas investment exchange |
255,392 |
218,139 |
|
|
|
Investments listed on the UK investment exchange |
36,091 |
33,970 |
|
|
|
|
_______ |
_______ |
|
|
|
|
291,483 |
252,109 |
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
2015 |
2014 |
|
|
|
Gains/(losses) on investments held at fair value through profit or loss |
£'000 |
£'000 |
|
|
|
Realised gains on sales |
16,269 |
9,029 |
|
|
|
Increase/(Decrease) in fair value gains on investments held |
20,808 |
(37,222) |
|
|
|
|
_______ |
_______ |
|
|
|
|
37,077 |
(28,193) |
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
Transaction costs |
|||
|
|
During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on investments held at fair value through profit or loss in the Income Statement. The total costs were as follows: |
|||
|
|
|
|
|
|
|
|
|
2015 |
2014 |
|
|
|
|
£'000 |
£'000 |
|
|
|
Purchases |
47 |
22 |
|
|
|
Sales |
28 |
43 |
|
|
|
|
_______ |
_______ |
|
|
|
|
75 |
65 |
|
|
|
|
_______ |
_______ |
|
|
|
|
2015 |
2014 |
|
10. |
Loans and receivables |
£'000 |
£'000 |
|
|
Prepayments and accrued income |
1,871 |
1,411 |
|
|
Other loans and receivables |
81 |
185 |
|
|
|
_______ |
_______ |
|
|
|
1,952 |
1,596 |
|
|
|
_______ |
_______ |
|
|
|
2015 |
2014 |
|
|
11. |
Creditors |
£'000 |
£'000 |
|
|
|
Amounts falling due within one year: |
|
|
|
|
|
a) |
Loans |
|
|
|
|
|
Foreign currency loans |
18,585 |
16,912 |
|
|
|
Sterling loan |
2,500 |
2,500 |
|
|
|
|
_______ |
_______ |
|
|
|
|
21,085 |
19,412 |
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
2015 |
2014 |
|
|
b) |
Other |
£'000 |
£'000 |
|
|
|
Amounts due to brokers |
- |
59 |
|
|
|
Other creditors |
566 |
509 |
|
|
|
_______ |
_______ |
|
|
|
|
566 |
568 |
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
2015 |
2014 |
|
|
|
Amounts falling due after more than one year: |
£'000 |
£'000 |
|
|
|
|
_______ |
_______ |
|
|
|
Sterling loan |
5,000 |
- |
|
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
|
|
At the year end the Company's secured floating rate bank loans of HK$154,100,000 (2014 - HK$154,100,000), equivalent to £12,937,000 (2014 - £11,771,000), US$8,680,000 (2014 - US$8,680,000), equivalent to £5,648,000 (2014 - £5,141,000), £2,500,000 (2014 - £2,500,000), with a maturity date of 26 May 2015 (2014 - 22 May 2014), and fixed rate bank loan of £5,000,000 (2014 - £nil), were drawn down from the £35,000,000 facility with The Royal Bank of Scotland at interest rates of 1.24%, 1.18%, 1.51% and 2.75% (2014 - 1.64%, 1.50%, 1.84% and nil) respectively. This facility was signed on 6 October 2014 and replaces the previous £30,000,000 multi-currency revolving loan facility with the same lender. |
|||
|
|
|
|||
|
|
As of the latest date prior to the signing of this report the HK$154,100,000, US$8,680,000 and £2,500,000 loans had been drawn down to 26 June 2015 at interest rates of 1.23686%, 1.18475% and 1.50563% respectively. |
|||
|
|
|
|||
|
|
The terms of the bank loan with The Royal Bank of Scotland state that: |
|||
|
|
-the net tangible assets of the Company must be not less than £125 million at all times; |
|||
|
|
-the ratio of gross borrowings to adjusted assets must be less than 25% at all times (adjusted assets are total gross assets less (i) the value in excess of 10% of total gross assets invested in the largest single security or asset; and (ii) the value in excess of 60% of total gross assets invested in the top twenty largest investments; and (iii) the value of all unlisted investments; and (iv) the value of any single security or asset (other than the largest security or asset referred to above) exceeds 5% of gross assets); |
|||
|
|
-the facility, under which the loans are made, will expire on 7 October 2019. |
|||
|
|
-the extent to which the aggregate value of securities or assets in countries with a Standard and Poor's Foreign Sovereign debt rating lower that BBB exceeds 30% of Gross Assets; and |
|||
|
|
-the extent to which the value of securities in collective investment schemes exceeds 30% of Gross Assets. |
|||
|
|
|
|||
|
|
The Company has met all covenants throughout the period and up to the date of this Report. |
|||
|
|
|
2015 |
2014 |
|
12. |
Called-up share capital |
£'000 |
£'000 |
|
|
Allotted, called up and fully paid: |
|
|
|
|
124,333,010 (2014 - 124,547,010) Ordinary shares of 5p each |
6,217 |
6,227 |
|
|
|
|
|
|
|
Held in treasury: |
|
|
|
|
2,602,655 (2014 - 2,388,655) Ordinary shares of 5p each |
130 |
120 |
|
|
|
_______ |
_______ |
|
|
|
6,347 |
6,347 |
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
During the year 214,000 (2014 - nil) Ordinary shares of 5p each were repurchased by the Company at a total cost, including transaction costs, of £399,000 (2014 - £nil). All of the shares were placed in treasury. Shares held in treasury represent 2.09% of the Company's total issued share capital at 30 April 2015. |
||
|
|
Subsequent to the year end the Company bought back for treasury a further 164,000 Ordinary shares of 25p each for a total consideration of £291,000.
|
||
|
|
The investment objective of the Company is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan. |
||
|
|
|
||
|
|
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. |
||
|
|
|
||
|
|
The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes: |
||
|
|
-the planned level of gearing which takes account of the Manager's views on the market; |
||
|
|
the level of equity shares in issue; and |
||
|
|
-the extent to which revenue in excess of that which is required to be distributed should be retained. |
||
|
|
|
||
|
|
The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period. |
||
|
|
|
||
|
|
The Company does not have any externally imposed capital requirements. |
||
|
|
|
2015 |
2014 |
|
13. |
Capital reserve |
£'000 |
£'000 |
|
|
At 1 May 2014 |
177,236 |
205,220 |
|
|
Movement in fair value gains/(losses) |
37,077 |
(28,193) |
|
|
Foreign exchange movement |
(1,605) |
1,310 |
|
|
Expenses taken to capital |
(1,158) |
(1,101) |
|
|
|
_______ |
_______ |
|
|
At 30 April 2015 |
211,550 |
177,236 |
|
|
|
_______ |
_______ |
|
|
|
|
|
|
|
The capital reserve includes investment holding gains amounting to £140,366,000 (2014 - £119,558,000), as disclosed in note 9. |
||
|
14. |
Net asset value per share |
||
|
|
The net asset value per share and the net asset values attributable to Ordinary shareholders at the year end calculated in accordance with the Articles of Association were as follows: |
||
|
|
|
|
|
|
|
|
2015 |
2014 |
|
|
Net assets attributable (£'000) |
269,398 |
234,762 |
|
|
Number of Ordinary shares in issue (excluding shares held in treasury) |
124,333,010 |
124,547,010 |
|
|
Net asset value per share (p) |
216.67 |
188.49 |
|
15. |
Reconciliation of net return on ordinary activities before finance |
2015 |
2014 |
|
|
costs and taxation to net cash inflow from operating activities |
£'000 |
£'000 |
|
|
Net return on ordinary activities before finance costs and taxation |
40,141 |
(22,694) |
|
|
Adjustment for: |
|
|
|
|
(Gains)/losses on investments held at fair value through profit or loss |
(37,077) |
28,193 |
|
|
Exchange losses/(gains) charged to capital |
1,605 |
(1,310) |
|
|
(Increase)/decrease in accrued income |
(460) |
226 |
|
|
Decrease in other debtors |
104 |
111 |
|
|
Increase in other creditors |
61 |
169 |
|
|
|
_______ |
_______ |
|
|
Net cash inflow from operating activities |
4,374 |
4,695 |
|
|
|
_______ |
_______ |
|
|
|
1 May |
Cash |
Exchange |
30 April |
|
|
|
2014 |
flow |
movements |
2015 |
|
16. |
Analysis of changes in net debt |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Cash at bank |
1,037 |
1,509 |
68 |
2,614 |
|
|
Debts falling due within one year |
(19,412) |
- |
(1,673) |
(21,085) |
|
|
Debts falling due after more than one year |
- |
(5,000) |
- |
(5,000) |
|
|
|
_______ |
_______ |
_______ |
_______ |
|
|
Net debt |
(18,375) |
(3,491) |
(1,605) |
(23,471) |
|
|
|
_______ |
_______ |
_______ |
_______ |
|
17. |
Related party transactions and transactions with the Manager |
|
|
|
|
|
|
|
|
Mr H Young is a director of Aberdeen Asset Management PLC, of which Aberdeen Fund Manages Limited ("AFML") is a subsidiary. Management, promotional activities and secretarial and administration services are provided by AFML with details of transactions during the year and balances outstanding at the year end disclosed in notes 3 and 4. |
|
|
|
|
|
During the course of the year, the Company has held investments in other funds managed by the same Manager. These holdings are disclosed in note 3. |
|
18. |
Financial instruments |
|||||||||||
|
|
Risk management |
|||||||||||
|
|
The Company's investment activities expose it to various types of financial risk associated with the financial instruments and markets in which it invests. The Company's financial instruments comprise securities and other investments, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. |
|||||||||||
|
|
|
|||||||||||
|
|
The Board has delegated the risk management function to AFML under the terms of its management agreement with AFML (further details of which are included under note 3). The Board regularly reviews and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk and the Manager's approach to the management of each type of risk, are summarised below. Such approach has been applied throughout the year and has not changed since the previous accounting period. The numerical disclosures exclude short-term debtors and creditors. |
|||||||||||
|
|
|
|||||||||||
|
|
Risk management framework |
|||||||||||
|
|
The directors of Aberdeen Fund Managers Limited collectively assume responsibility for AFML's obligations under the AIFMD including reviewing investment performance and monitoring the Company's risk profile during the year. |
|||||||||||
|
|
|
|||||||||||
|
|
AFML is a fully integrated member of the Aberdeen Group, which provides a variety of services and support to AFML in the conduct of its business activities, including in the oversight of the risk management framework for the Company. The AIFM has delegated the day to day administration of the investment policy to Aberdeen Asset Management Asia Limited, which is responsible for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-investment disclosures to investors (details of which can be found on the Company's website). The AIFM has retained responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company. |
|||||||||||
|
|
|
|||||||||||
|
|
The Manager conducts its risk oversight function through the operation of the Group's risk management processes and systems which are embedded within the Group's operations. The Group's Risk Division supports management in the identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance, Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group's Head of Risk, who reports to the Chief Executive Officer of the Group. The Risk Division achieves its objective through embedding the Risk Management Framework throughout the organisation using the Group's operational risk management system ("SWORD"). |
|||||||||||
|
|
|
|||||||||||
|
|
The Group's Internal Audit Department is independent of the Risk Division and reports directly to the Group CEO and to the Audit Committee of the Group's Board of Directors. The Internal Audit Department is responsible for providing an independent assessment of the Group's control environment. |
|||||||||||
|
|
|
|||||||||||
|
|
The Group's corporate governance structure is supported by several committees to assist the board of directors of Aberdeen, its subsidiaries and the Company to fulfil their roles and responsibilities. The Group's Risk Division is represented on all committees, with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the functioning of those committees are described on the committees' terms of reference. |
|||||||||||
|
|
|
|||||||||||
|
|
Risk management |
|||||||||||
|
|
The main risks the Company faces from its financial instruments are (i) market risk (comprising interest rate risk, currency risk and price risk), (ii) liquidity risk and (iii) credit risk. |
|||||||||||
|
|
|
|||||||||||
|
|
Market risk |
|||||||||||
|
|
The fair value of, or future cash flows from a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, foreign currency risk and other price risk. |
|||||||||||
|
|
|
|||||||||||
|
|
Interest rate risk |
|||||||||||
|
|
Interest rate movements may affect: |
|||||||||||
|
|
-the level of income receivable on cash deposits; and, |
|||||||||||
|
|
-interest payable on the Company's variable rate borrowings. |
|||||||||||
|
|
|
|||||||||||
|
|
Management of the risk |
|||||||||||
|
|
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 gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise fixed rate, revolving, and uncommitted facilities. The fixed rate facilities are used to finance opportunities at low rates and, the revolving and uncommitted facilities to provide flexibility in the short-term. Current bank covenant guidelines state that the total borrowings will not exceed 25% of the adjusted net assets of the Company as defined in note 11. |
|||||||||||
|
|
|
|||||||||||
|
|
Interest risk profile |
|||||||||||
|
|
The interest rate risk profile of the portfolio of the Company's financial assets and liabilities, excluding equity holdings which are all non-interest bearing, at the Balance Sheet date was as follows: |
|||||||||||
|
|
|
|||||||||||
|
|
|
Weighted average |
Weighted |
|
|
|
||||||
|
|
|
period for which |
average |
Fixed |
Floating |
|
||||||
|
|
|
rate is fixed |
interest rate |
rate |
rate |
|
||||||
|
|
At 30 April 2015 |
Years |
% |
£'000 |
£'000 |
|
||||||
|
|
Assets |
|
|
|
|
|
||||||
|
|
Sterling |
- |
0.15 |
- |
2,611 |
|
||||||
|
|
Taiwan Dollar |
- |
- |
- |
3 |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
- |
2,614 |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
Liabilities |
|
|
|
|
|
||||||
|
|
Bank loan - £2,500,000 |
0.08 |
1.51 |
2,500 |
- |
|
||||||
|
|
Bank loan - £5,000,000 |
4.91 |
2.75 |
5,000 |
- |
|
||||||
|
|
Bank loan - HK$154,100,000 |
0.08 |
1.24 |
12,937 |
- |
|
||||||
|
|
Bank loan - US$8,680,000 |
0.08 |
1.18 |
5,648 |
- |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
26,085 |
- |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
Weighted average |
Weighted |
|
|
|
||||||
|
|
|
period for which |
average |
Fixed |
Floating |
|
||||||
|
|
|
rate is fixed |
interest rate |
rate |
rate |
|
||||||
|
|
At 30 April 2014 |
Years |
% |
£'000 |
£'000 |
|
||||||
|
|
Assets |
|
|
|
|
|
||||||
|
|
Sterling |
- |
0.10 |
- |
1,031 |
|
||||||
|
|
Taiwan Dollar |
- |
- |
- |
6 |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
- |
1,037 |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
Weighted average |
Weighted |
|
|
|
||||||
|
|
|
period for which |
average |
Fixed |
Floating |
|
||||||
|
|
|
rate is fixed |
interest rate |
rate |
rate |
|
||||||
|
|
|
Years |
% |
£'000 |
£'000 |
|
||||||
|
|
Liabilities |
|
|
|
|
|
||||||
|
|
Bank loan - £2,500,000 |
0.08 |
1.84 |
2,500 |
- |
|
||||||
|
|
Bank loan - HK$154,000,000 |
0.08 |
1.64 |
11,771 |
- |
|
||||||
|
|
Bank loan - US$8,680,000 |
0.08 |
1.50 |
5,141 |
- |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
19,412 |
- |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans. The maturity date of the Company's loans are shown in note 11. |
|
||||||||||
|
|
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates. |
|
||||||||||
|
|
The Company's equity portfolio and short-term debtors and creditors (excluding bank loans) have been excluded from the above tables. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Interest rate sensitivity |
|
||||||||||
|
|
Movements in interest rates would not significantly affect net assets attributable to the Company's shareholders and total profit.
|
|
||||||||||
|
|
Foreign currency risk |
|
||||||||||
|
|
All of the Company's investment portfolio is invested in overseas securities and the Balance Sheet, therefore, can be significantly affected by movements in foreign exchange rates. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Management of the risk |
|
||||||||||
|
|
It is not the Company's policy to hedge this risk on a continuing basis but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. The Company's borrowings, as detailed in note 11, are also in foreign currency. |
|
||||||||||
|
|
|
|
||||||||||
|
|
The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not hedge this currency risk. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Foreign currency exposure by currency of denomination: |
|
||||||||||
|
|
|
|
||||||||||
|
|
|
30 April 2015 |
30 April 2014 |
|
||||||||
|
|
|
|
Net |
Total |
|
Net |
Total |
|
||||
|
|
|
Overseas |
monetary |
currency |
Overseas |
monetary |
currency |
|
||||
|
|
|
investments |
assets |
exposure |
investments |
assets |
exposure |
|
||||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
||||
|
|
Australian Dollar |
15,947 |
- |
15,947 |
11,809 |
- |
11,809 |
|
||||
|
|
Hong Kong Dollar |
64,451 |
(12,937) |
51,514 |
52,821 |
(11,771) |
41,050 |
|
||||
|
|
Indonesian Rupiah |
3,131 |
- |
3,131 |
2,194 |
- |
2,194 |
|
||||
|
|
Korean Won |
17,497 |
- |
17,497 |
14,496 |
- |
14,496 |
|
||||
|
|
Malaysian Ringgit |
5,989 |
- |
5,989 |
6,373 |
- |
6,373 |
|
||||
|
|
Philippine Peso |
9,787 |
- |
9,787 |
7,984 |
- |
7,984 |
|
||||
|
|
Singapore Dollar |
59,062 |
- |
59,062 |
48,923 |
- |
48,923 |
|
||||
|
|
Sri Lankan Rupee |
7,974 |
- |
7,974 |
7,019 |
- |
7,019 |
|
||||
|
|
Sterling |
66,010 |
(4,889) |
61,121 |
63,354 |
(1,469) |
61,885 |
|
||||
|
|
Taiwanese Dollar |
14,435 |
3 |
14,438 |
12,592 |
6 |
12,598 |
|
||||
|
|
Thailand Baht |
11,009 |
- |
11,009 |
10,280 |
- |
10,280 |
|
||||
|
|
US Dollar |
16,191 |
(5,648) |
10,543 |
14,264 |
(5,141) |
9,123 |
|
||||
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
||||
|
|
Total |
291,483 |
(23,471) |
268,012 |
252,109 |
(18,375) |
233,734 |
|
||||
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
Foreign currency sensitivity |
|
||||||||||
|
|
The following table details the Company's sensitivity to a 10% increase and decrease in sterling against the foreign currencies in which the Company has exposure. The sensitivity analysis includes foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. |
|
||||||||||
|
|
|
|
|
|
||||||||
|
|
|
2015 |
2014 |
|
||||||||
|
|
|
£'000 |
£'000 |
|
||||||||
|
|
Australian Dollar |
1,595 |
1,181 |
|
||||||||
|
|
Hong Kong Dollar |
5,151 |
4,105 |
|
||||||||
|
|
Indonesian Rupiah |
313 |
219 |
|
||||||||
|
|
Korean Won |
1,750 |
1,450 |
|
||||||||
|
|
Malaysian Ringgit |
599 |
637 |
|
||||||||
|
|
Philippine Peso |
979 |
798 |
|
||||||||
|
|
Singapore Dollar |
5,906 |
4,892 |
|
||||||||
|
|
Sri Lankan Rupee |
797 |
702 |
|
||||||||
|
|
Taiwanese Dollar |
1,444 |
1,260 |
|
||||||||
|
|
Thailand Baht |
1,101 |
1,028 |
|
||||||||
|
|
US Dollar |
1,054 |
912 |
|
||||||||
|
|
|
_______ |
_______ |
|
||||||||
|
|
|
20,689 |
17,184 |
|
||||||||
|
|
|
_______ |
_______ |
|
||||||||
|
|
|
|
|
|
||||||||
|
|
Price risk |
|
||||||||||
|
|
Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Management of the risk |
|
||||||||||
|
|
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 country or sector. Both the allocation of assets and the stock selection process act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges worldwide. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Price risk sensitivity |
|
||||||||||
|
|
If market prices at the Balance Sheet date had been 10% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 30 April 2015 would have increased/(decreased) by £29,148,000 (2014 - increased/(decreased) by £25,211,000) and equity reserves would have increased/(decreased) by the same amount. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Liquidity risk |
|
||||||||||
|
|
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Management of the risk |
|
||||||||||
|
|
The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise a revolving multi-currency credit facility, which expires on 7 October 2019. The Board has imposed a maximum gearing level, measured on the most stringent basis of calculation after netting off cash equivalents, of 25%. Details of borrowings at 30 April 2015 are shown in note 11. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of the loan facility, details of which can be found in note 11. Under the terms of the loan facility, the Manager provides the lender with loan covenant reports on a monthly basis, to provide the lender with assurance that the terms of the facility are not being breached. The Manager will also review the credit rating of a lender on a regular basis. Details of the Board's policy on gearing are shown in the interest rate risk section of this note. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Liquidity risk exposure |
|
||||||||||
|
|
At 30 April 2015 and 30 April 2014 the Company's floating rate bank loans, amounting to £21,085,000 and £19,412,000 respectively, were due for repayment or roll-over within one month of the year end. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Credit risk |
|
||||||||||
|
|
This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss. |
|
||||||||||
|
|
|
|
||||||||||
|
|
-investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the Manager, and limits are set on the amount that may be due from any one broker; |
|
||||||||||
|
|
-cash is held only with reputable banks with high quality external credit enhancements. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Credit risk exposure |
|
||||||||||
|
|
In summary, compared to the amounts in the Balance Sheet, the maximum exposure to credit risk at 30 April was as follows: |
|
||||||||||
|
|
|
|
||||||||||
|
|
|
2015 |
2014 |
|
||||||||
|
|
|
Balance |
Maximum |
Balance |
Maximum |
|
||||||
|
|
|
Sheet |
exposure |
Sheet |
exposure |
|
||||||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
||||||
|
|
Non-current assets |
|
|
|
|
|
||||||
|
|
Investments at fair value through profit or loss |
291,483 |
291,483 |
252,109 |
252,109 |
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
Current assets |
|
|
|
|
|
||||||
|
|
Loans and receivables |
1,952 |
1,952 |
1,596 |
1,596 |
|
||||||
|
|
Cash at bank and in hand |
2,614 |
2,614 |
1,037 |
1,037 |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
296,049 |
296,049 |
254,742 |
254,742 |
|
||||||
|
|
|
_______ |
_______ |
_______ |
_______ |
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
None of the Company's financial assets is past due or impaired. |
|
||||||||||
|
|
|
|
||||||||||
|
|
Fair values of financial assets and financial liabilities |
|
||||||||||
|
|
For the floating rate HK$ loan, the fair value of borrowings has been calculated at £12,940,000 as at 30 April 2015 (2014 - £11,782,000) compared to an accounts value in the financial statements of £12,937,000 (2014 - £11,771,000) (note 11). For the floating rate US$ loan, the fair value of borrowings has been calculated at £5,649,000 as at 30 April 2015 (2014 - £5,145,000) compared to an accounts value in the financial statements of £5,648,000 (2014 - £5,141,000) (note 11). For the floating rate GBP loan, the fair value of borrowings has been calculated at £2,501,000 as at 30 April 2015 (2014 - £2,503,000) compared to an accounts value in the financial statements of £2,500,000 (2014 - £2,500,000) (note 11). For the fixed rate GBP loan, the fair value of borrowings has been calculated at £5,221,000 as at 30 April 2015 (2014 - £nil) compared to an accounts value in the financial statements £5,000,000 (2014 - £nil) (note 11). The fair value of each loan is determined by aggregating the expected future cash flows for that loan discounted at a rate comprising the borrower's margin plus an average of market rates applicable to loans of a similar period of time and currency. All other assets and liabilities of the Company are included in the Balance Sheet at fair value. |
|
||||||||||
|
19. |
Fair value hierarchy |
|
|
|
FRS 29 'Financial Instruments: Disclosures' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: |
|
|
|
|
|
|
|
Level 1: |
Quoted prices (unadjusted) in active markets for identical assets or liabilities; |
|
|
Level 2: |
Inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (ie as prices) or indirectly (ie derived from prices); and |
|
|
Level 3: |
Inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
|
|
|
|
|
|
All of the Company's investments are in quoted equities (2014 - same) actively traded on recognised stock exchanges, with their fair value being determined by reference to their quoted bid prices at the reporting date. The total value of the investments (2015 - £291,483,000; 2014 - £252,109,000) have therefore been deemed as Level 1. |
|
|
|
|
|
|
|
Borrowings are held at amortised cost. The fair value is disclosed above and is categorised as Level 2. |
|
Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.
If approved, the proposed final dividend of 2.8p per share will be paid on 4 September 2015 to holders of Ordinary shares on the register at the close of business on 7 August 2015. The relevant ex-dividend date is 6 August 2015.
The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 30 April 2015 have been agreed with the auditor and are an abridged version of the Company's full accounts, which have been approved and audited with an unqualified report. The 2014 and 2015 statutory accounts received unqualified reports from the Company's auditor and did not include any reference to matters to which the auditor drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498(2) or 498(3) of the Companies Act 2006. The financial information for 2014 is derived from the statutory accounts for 2013 which have been delivered to the Registrar of Companies. The 2015 accounts will be filed with the Registrar of Companies in due course.
The Annual General Meeting of the Company will be held at 12.00 noon on 2 September 2015 at Bow Bells House, One Bread Street, London EC4M 9HH.
The audited Annual Report and Accounts will be posted to shareholders shortly. Copies may be obtained during normal business hours from the Secretary, Aberdeen Asset Management PLC, 40 Princes Street, Edinburgh EH2 2BY or from the Company's website, www.newdawn-trust.co.uk*.
By order of the Board
Aberdeen Asset Management PLC - Secretary
26 June 2015
* Neither the Company's website nor the content of any website accessible from hyperlinks on it (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.
This information is provided by RNS
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