Half-year Report

RNS Number : 1268N
BMO Managed Portfolio Trust PLC
28 January 2021
 

To:  RNS

Date:  28 January 2021

From: BMO Managed Portfolio Trust PLC

LEI:   213800ZA6TW45NM9YY31

 

 

Unaudited Interim Results

The Board of BMO Managed Portfolio Trust PLC announces the unaudited interim results of the Company for the six month period to 30 November 2020.

 

Income shares - financial highlights and performance summary for the six months

 

· Dividend yield(1) of 4.8% at 30 November 2020, compared to the yield on the FTSE All-Share Index of 3.7%. Dividends are paid quarterly. First two interim dividends were maintained at the same level as the prior year.

· Net asset value total return(1) per Income share of +13.0% for the six months, outperforming the FTSE All-Share Index total return of +6.9% by +6.1%.

 

Growth shares - financial highlights and performance summary for the six months

 

· Net asset value total return(1) per Growth share of +20.0% for the six months, outperforming the FTSE All-Share Index total return of +6.9% by +13.1%.

· NAV total return compound annual growth rate(1) of +10.0% over 10 years compared with a return of +5.9% from the FTSE All-Share Index.

 

Notes:

(1)  Yield, total return and compound annual growth rate - See Alternative Performance Measures.

 

 

Chairman's Statement

 

Highlights

 

· Net asset value ("NAV") total return for the six months of +13.0% for the Income shares and +20.0% for the Growth shares, both classes outperforming the FTSE All-Share Index total return of +6.9%

 

· NAV total return compound annual growth rate over 10 years of +7.8% for the Income shares and +10.0% for the Growth shares compared with a return of +5.9% from the FTSE All-Share Index.

 

· Income share dividend yield of 4.8% at 30 November 2020

 

Investment performance

For the six months to 30 November 2020, the NAV total return was +13.0% for the Income shares and +20.0% for the Growth shares. The total return for the benchmark index for both share classes, the FTSE All-Share Index, was +6.9%. The long-term track record continues to show the NAV total return for both share classes outperforming the benchmark index over 3 years, 5 years and 10 years

to 30 November 2020, with the NAV total return over 10 years achieving a compound annual growth

rate of +7.8% for the Income shares and +10.0% for the Growth shares compared with a return of +5.9% from the benchmark index.

 

Given the level of market uncertainty the rate for the first two interim dividends has been maintained at that paid in the prior year and the yield on the Income shares of 4.8% remains higher than the yield of 3.7% on the FTSE All-Share Index as at 30 November 2020.

 

The period under review witnessed markets operating under the spectre of the COVID-19 pandemic. As a result of strict lockdowns, the European and US economies went into a sharp and deep recession during the second calendar quarter of 2020. Restrictions were gradually eased, only to be tightened again as a second wave of the pandemic became apparent. The UK equity market was particularly hard hit and for most of the period continued to move lower until the announcement of the first vaccine in early November. Equity markets globally rallied strongly, especially in Europe and the UK as investors looked ahead to an opening up of economies and a return to a degree of normality.

 

The Growth portfolio performed strongly over the period as a number of investment companies with

significant exposure to the wider technology sector performed well. This trend was led by Scottish Mortgage Investment Trust (the largest listed investment company) which rose over 50%. The trust benefitted from the extraordinary rise in the share price of its largest holding electric vehicle manufacturer Tesla. Its next biggest holding Amazon also performed well as demand for its online shopping was very strong. The next two best performers were UK equity trusts which had both experienced, for long periods, a difficult time in terms of performance. However, following the vaccine announcement in November they enjoyed substantial gains. Over the six months under review, Artemis Alpha Trust rose by 42% and Henderson Opportunities Trust appreciated by 41%; however, in both cases the majority of the share price rises happened following the vaccine announcement.

 

Due to the requirement for yield it is challenging for the Income portfolio to gain exposure to the secular growth opportunities offered by investment trusts in the technology sector where the underlying companies often pay no or very low dividends. It is nonetheless encouraging that the Income portfolio outperformed its benchmark. The leading contributor with a 41% gain was Princess Private Equity Holding which specialises in mid-sized private companies primarily in the US and Europe with a focus on software, education, and digital platforms in a variety of different sectors. Long-time holding JPMorgan Global Emerging Markets Income Trust was ahead by 29% in a better environment for companies in emerging markets and Law Debenture Corporation gained 27% as UK equities rallied strongly following the vaccine announcement.

 

The Trust's excellent performance was recognised when the Growth portfolio once again won the 2020 Investment Week Investment Trust of the Year Award for the Flexible Investment sector.

 

(All share prices are total return).

 

Revenue and dividends

The Company's net revenue for the six months was £1.67 million which is equivalent to 3.57p per Income share (compared to 3.40p per Income share for the corresponding period in 2019). Income shares are entitled to all the dividends paid by the Company. One benefit of the closed-end investment trust structure is the ability to utilise revenue reserves, built up in previous years, to sustain dividend payments during periods when there is a significant reduction in dividend income from underlying holdings. That was the case in the interim period to 30 November 2020 and enabled many of our holdings to sustain or, in some cases, grow their dividend payments.

 

While the net revenue per Income share has increased in the current period by approximately 5%, given the continuing level of market uncertainty, the Company maintained the dividend rate when it declared a first and second interim dividend in respect of the year to 31 May 2021, each of 1.4p per Income share (1.4p per Income share in the corresponding period in the year to 31 May 2020).

 

In the absence of unforeseen circumstances, the Board intends to pay three interim dividends, each of 1.4p per Income share, and aggregate dividends for the current financial year to 31 May 2021 will be at least 6.1p per Income share (2020: 6.1p per Income share). The amount of the fourth interim dividend will be determined when a clearer view of income for the year emerges. A minimum expected annual rate of 6.1p per Income share represents a yield on the Income share price at 30 November 2020 of 4.8%.

 

Borrowing

At 30 November 2020 the Income portfolio had total borrowings of £5 million (7.8% of gross assets), the investment of which helps to boost net income after allowing for the interest cost. The Growth

portfolio had no borrowings.

 

Discount to NAV and share buy-backs

In normal circumstances we aim to maintain our discount at not more than 5%, by buying back shares from time to time if necessary. In practice over the years the shares have generally traded close to NAV. During the six months to 30 November 2020 the average discount to NAV for the Income shares and for the Growth shares was 0.2% and 0.4% respectively. At 30 November 2020, the Income shares stood at a discount to NAV of 0.1% and the Growth shares at a premium of 0.4% to NAV.

 

Share conversion facility

Shareholders have the opportunity to convert their Income shares into Growth shares or their Growth shares into Income shares annually subject to minimum and maximum conversion thresholds which may be reduced or increased at the discretion of the Board. On 5 November 2020 the conversion proceeded, for those shareholders who had elected to do so. The net result of those conversions was a decrease of 115,747 Income shares and an increase of 58,343 Growth shares in issue. The ability to convert without incurring capital gains tax should be an attractive facility for shareholders and the next conversion date (subject to minimum and maximum thresholds) will be in October 2021. Details will be provided when the Company's annual report is published in late July 2021.

 

Outlook

After the experience of 2020 where the pandemic caused an unprecedented sharp and deep recession the news of a number of effective vaccines has brought the hope that by the second half of this calendar year economies will be moving towards normalisation. Financial markets are assuming this will be the case. In the meantime, massive monetary and fiscal stimulation from various governments and Central Banks is being undertaken to ensure recovery will be robust as the year unfolds. Valuations of many equity markets (particularly the US) are at high levels, however the expectation is that economic recovery will be accompanied by a rapid and substantial recovery in corporate earnings in 2021.

 

Since the Brexit referendum in 2016 UK equities have been a persistent underperformer relative to most other major equity markets. This has left the UK very attractively valued when compared to other global equity markets. Conclusion of the post-Brexit trade agreement and the removal of the accompanying prolonged uncertainty should help to clear the way for a revival in the relative performance of the UK equity market. Although current lockdowns may delay the recovery, there is confidence that widespread vaccination will eventually bring about a concerted move towards normality.

 

Colin S McGill

Chairman

27 January 2021

 

 

Unaudited Condensed Income Statement

Six months to 30 November 2020

 

 

 

 

 

 

 

 

 

Notes

Revenue

Capital

Total

 

 

£'000

£'000

£'000

Gains on investments

 

-

20,873

20,873

Foreign exchange losses

 

-

(13)

(13)

Income

2

2,109

-

2,109

Investment management and performance fees

3

(138)

(619)

(757)

Other expenses

 

(281)

-

(281)

Return on ordinary activities before

  finance costs and tax

 

 

1,690

 

20,241

 

21,931

Finance costs

 

(22)

(33)

(55)

Return on ordinary activities before tax

 

1,668

20,208

21,876

Tax on ordinary activities

 

-

-

-

Return attributable to shareholders

 

1,668

20,208

21,876

Return per Income share

5

3.57p

11.12p

14.69p

Return per Growth share

5

-

41.58p

41.58p

 

 

 

 

 

      

 

The total column of this statement is the Profit and Loss Account of the Company.

 

The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing operations.

 

Return attributable to shareholders represents the profit/(loss) for the period and also total comprehensive income.

 

Unaudited Condensed Income Statement

Six months to 30 November 2019

 

 

Notes

Revenue

Capital

Total

 

 

£'000

£'000

£'000

Gains on investments

Foreign exchange losses

 

-

-

5,852

(1)

5,852

(1)

Income

2

1,927

-

1,927

Investment management and performance fees

3

(130)

(342)

(472)

Other expenses

 

(272)

-

(272)

 

 

1,525

 

5,509

 

7,034

Finance costs

 

(22)

(33)

(55)

Return on ordinary activities before tax

 

1,503

5,476

6,979

Tax on ordinary activities

 

-

-

-

Return attributable to shareholders

 

1,503

5,476

6,979

Return per Income share

5

3.40p

4.80p

8.20p

Return per Growth share

5

-

9.44p

9.44p

 

The total column of this statement is the Profit and Loss Account of the Company.

 

The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing operations.

 

Return attributable to shareholders represents the profit/(loss) for the period and also total comprehensive income.

 

 

Condensed Income Statement (audited)

Year to 31 May 2020

 

 

 

 

 

 

 

 

 

Notes

Revenue

Capital

Total

 

 

£'000

£'000

£'000

 

 

 

 

 

Losses on investments

 

-

(5,376)

(5,376)

Foreign exchange losses

 

-

(13)

(13)

Income

2

3,851

-

3,851

Investment management and performance fees

3

(257)

(1,093)

(1,350)

Other expenses

 

(537)

-

(537)

Return on ordinary activities before

  finance costs and tax

 

 

3,057

 

(6,482)

 

(3,425)

 

Finance costs

 

(44)

(66)

(110)

 

 

 

 

 

Return on ordinary activities before tax

 

3,013

(6,548)

(3,535)

Tax on ordinary activities

 

(13)

-

(13)

Return attributable to shareholders

 

3,000

(6,548)

(3,548)

Return per Income share

5

6.69p

(17.13p)

(10.44p)

Return per Growth share

5

-

3.18p

3.18p

      

 

 

 

The total column of this statement is the Profit and Loss Account of the Company.

 

The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing activities.

 

Return attributable to shareholders represents the profit/(loss) for the year and also total comprehensive income.

 

 

Unaudited Condensed Balance Sheet

As at 30 November 2020

 

 

 

 

Notes

Income

Shares

Growth

Shares

 

Total

 

 

£'000

£'000

£'000

Fixed assets

 

 

 

 

Investments

4

63,466

88,159

151,625

 

 

 

 

 

Current assets

 

 

 

 

Debtors

 

230

77

307

Cash at bank and on deposit

 

1,237

3,127

4,364

 

 

 

 

 

 

 

1,467

3,204

4,671

 

 

 

 

 

Creditors:

Amounts falling due within one year

 

 

 

(491)

 

(393)

 

(884)

 

 

 

 

 

Net current assets

 

976

2,811

3,787

 

 

 

 

 

Creditors:

Amounts falling due in more than one year

 

12

 

(5,000)

 

-

 

(5,000)

 

 

 

 

 

Net assets

 

59,442

90,970

150,412

 

 

 

 

 

Capital and reserves:

 

 

 

 

Called-up share capital

7

4,446

3,458

7,904

Share premium

 

27,359

23,019

50,378

Capital redemption reserve

 

252

364

616

Special Reserve

 

18,990

17,162

36,152

Capital reserves

 

5,442

46,967

52,409

Revenue reserve

 

2,953

-

2,953

 

 

 

 

 

Shareholders' funds

 

59,442

90,970

150,412

 

 

 

 

 

Net asset value per share (pence)

8

127.16p

249.94p

 

 

 

 

Unaudited Condensed Balance Sheet

As at 30 November 2019

 

 

Notes

Income shares

Growth shares

 

Total

 

£'000

£'000

£'000

 

 

 

 

 

Fixed assets

 

 

 

 

Investments

 

64,170

71,939

136,109

Current assets

 

 

 

 

Debtors

Cash at bank and on deposit

 

252

1,860

81

4,543

333

6,403

 

 

2,112

4,624

6,736

 

 

 

 

 

Creditors

 

 

 

 

Amounts falling due within one year

 

(311)

(453)

(764)

Net current assets

 

1,801

4,171

5,972

Creditors

 

 

 

 

Amounts falling due in more than one year

 

(5,000)

-

(5,000)

Net assets

 

60,971

76,110

137,081

 

 

 

 

 

Capital and reserves

 

 

 

 

Called-up share capital

 

4,457

3,558

8,015

Share premium

 

25,082

21,726

46,808

Capital redemption reserve

 

54

206

260

Special reserve

 

18,745

16,435

35,180

Capital reserves

 

10,040

34,185

44,225

Revenue reserve

 

2,593

-

2,593

Shareholders' Funds

 

60,971

76,110

137,081

 

 

 

 

 

Net asset value per share (pence)

8

136.75p

214.62p

 

 

 

Condensed Balance Sheet (audited)

As at 31 May 2020

 

 

Notes

Income shares

Growth shares

 

Total

 

 

£'000

£'000

£'000

 

 

 

 

 

Fixed assets

 

 

 

 

Investments

4

57,887

72,356

130,243

Current assets

 

 

 

 

Debtors

 

219

79

298

Cash at bank and on deposit

 

1,061

3,071

4,132

 

 

1,280

3,150

4,430

Creditors

 

 

 

 

Amounts falling due within one year

 

(173)

(733)

(906)

Net current assets

 

1,107

2,417

3,524

Creditors

 

 

 

 

Amounts falling due in more than one year

 

(5,206)

-

(5,206)

Net assets

 

53,788

74,773

128,561

 

 

 

 

 

Capital and reserves

 

 

 

 

Called-up share capital

 

4,415

3,408

7,823

Share premium

 

26,909

22,006

48,915

Capital redemption reserve

 

252

364

616

Special reserve

 

19,147

17,034

36,181

Capital reserves

 

240

31,961

32,201

Revenue reserve

 

2,825

-

2,825

Shareholders' Funds

 

53,788

74,773

128,561

 

 

 

 

 

Net asset value per share (pence)

8

115.71p

208.35p

 

 

 

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2020

 

 

 

Notes

Income shares

Growth shares

 

Total

 

 

£'000

£'000

£'000

 

 

 

 

 

Net cash outflow from operations before dividends

  and interest

 

 9

 

(277)

 

(942)

 

(1,219)

Dividends received

 

1,519

531

2,050

Interest received

 

-

-

-

Interest paid

 

(52)

-

(52)

Net cash inflow/(outflow) from operating activities

 

1,190

(411)

779

Investing activities

 

 

 

 

Purchases of investments

 

(1,327)

(2,777)

(4,104)

Sales of investments

 

1,529

2,053

3,582

Cash flows from investing activities

 

202

(724)

(522)

Cash flows before financing activities

 

1,392

(1,135)

257

Financing activities

 

 

 

 

Equity dividends paid

Net proceeds from issuance of new shares

6

(1,540)

488

-

1,056

(1,540)

1,544

Sale of shares from treasury

 

-

-

-

Shares purchased to be held in treasury

 

(29)

-

(29)

Share conversion

 

(135)

135

-

Cash flows from financing activities

 

(1,216)

1,191

(25)

Net movement in cash and cash equivalents

 

176

56

232

 

Cash and cash equivalents at the beginning of the period

 

 

1,061

 

3,071

 

4,132

 

Cash and cash equivalents at the end of the period

 

 

1,237

 

3,127

 

4,364

Represented by:

Cash at bank and short-term deposits

 

 

1,237

 

3,127

 

4,364

 

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2019

 

 

 

Notes

Income shares

Growth shares

 

Total

 

 

£'000

£'000

£'000

 

 

 

 

 

Net cash outflow from operations before dividends

  and interest

 

9

 

(387)

 

(388)

 

(775)

Dividends received

 

1,431

474

1,905

Interest received

 

4

12

16

Interest paid

 

(51)

-

(51)

Net cash inflow from operating activities

 

997

98

1,095

Investing activities

 

 

 

 

Purchases of investments

 

(1,606)

(301)

(1,907)

Sales of investments

 

1,494

533

2,027

Cash flows from investing activities

 

(112)

232

120

Cash flows before financing activities

 

885

330

1,215

Financing activities

 

 

 

 

Equity dividends paid

Net proceeds from issuance of new shares

Sale of shares from treasury

Shares purchased to be held in treasury

6

(1,448)

1,081

-

-

-

-

150

(422)

(1,448)

1,081

150

(422)

Share conversion

 

86

(86)

-

Cash flows from financing activities

 

(281)

(358)

(639)

Net movement in cash and cash equivalents

 

604

(28)

576

 

Cash and cash equivalents at the beginning of the period

 

 

1,256

 

4,571

 

5,827

 

Cash and cash equivalents at the end of the period

 

 

1,860

 

4,543

 

6,403

Represented by:

Cash at bank and short-term deposits

 

 

1,860

 

4,543

 

6,403

 

 

 

 

 

      

 

 

 

 

 

Condensed Statement of Cash Flows (audited)

Year to 31 May 2020

 

 

 

 

 

Notes

Income shares

Growth shares

 

Total

 

 

£'000

£'000

£'000

 

 

 

 

 

Net cash outflow from operations before dividends

  and interest

 

  9

 

(720)

 

(758)

 

(1,478)

Dividends received

 

2,829

1,028

3,857

Interest received

 

10

18

28

Interest paid

 

(102)

-

(102)

Net cash inflow from operating activities

 

2,017

288

2,305

Investing activities

 

 

 

 

Purchases of investments

 

(6,668)

(3,428)

(10,096)

Sales of investments

 

3,617

1,111

4,728

Cash flows from investing activities

 

(3,051)

(2,317)

(5,368)

Cash flows before financing activities

 

(1,034)

(2,029)

(3,063)

Financing activities

 

 

 

 

Equity dividends paid

  6

(2,713)

-

(2,713)

Net proceeds from issue of new shares

Sale of shares from treasury

 

3,466

-

594

443

4,060

443

Shares purchased to be held in treasury

 

-

(422)

(422)

Share conversion

 

86

(86)

-

Cash flows from financing activities

 

839

529

1,368

Net movement in cash and cash equivalents

 

(195)

(1,500)

(1,695)

 

Cash and cash equivalents at the beginning of the year

 

 

1,256

 

4,571

 

5,827

 

Cash and cash equivalents at the end of the year

 

 

1,061

 

3,071

 

4,132

Represented by:

Cash at bank and short-term deposits

 

 

1,061

 

3,071

 

4,132

      

 

 

 

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2020

 

 

 

 

Income shares

 

Share capital

£000

Share premium account

£000

Capital redemption reserve

£000

 

Special reserve

£000

 

Capital reserves

£000

 

Revenue reserve

£000

Total shareholders' funds

£000

As at 31 May 2020

4,415

26,909

252

19,147

240

2,825

53,788

Increase in share capital in issue, net of share issuance expenses

 

 

 

38

 

 

 

450

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

488

Shares purchased for treasury

 

-

 

-

 

-

 

(29)

 

-

 

-

 

(29)

Share conversion

(7)

-

-

(128)

-

-

(135)

Transfer of net income from Growth to Income portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

310

 

 

310

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(310)

 

 

-

 

 

(310)

Dividends paid

-

-

-

-

-

(1,540)

(1,540)

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

5,512

 

1,358

 

6,870

As at 30 November 2020

 

4,446

 

27,359

 

252

 

18,990

 

5,442

 

2,953

 

59,442

 

 

 

 

 

 

 

 

Growth shares

 

 

 

 

 

 

 

As at 31 May 2020

3,408

22,006

364

17,034

31,961

-

74,773

Increase in share capital in issue, net of issuance expenses

 

 

43

 

 

1,013

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,056

Share conversion

7

-

-

128

-

-

135

Transfer of net income from Growth to Income portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(310)

 

 

(310)

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

310

 

 

-

 

 

310

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

14,696

 

310

 

15,006

As at 30 November 2020

 

3,458

 

23,019

 

364

 

17,162

 

46,967

 

-

 

90,970

 

Total Company

 

 

 

 

 

 

 

As at 31 May 2020

7,823

48,915

616

36,181

32,201

2,825

128,561

Increase in share capital in issue, net of share issuance expenses

 

 

 

81

 

 

 

1,463

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,544

Shares purchased for treasury

 

-

 

-

 

-

 

(29)

 

-

 

-

 

(29)

Share conversion

-

-

-

-

-

-

-

Dividends paid

-

-

-

-

-

(1,540)

(1,540)

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

20,208

 

1,668

 

21,876

Total Company as at 30 November 2020

 

7,904

 

50,378

 

616

 

36,152

 

52,409

 

2,953

 

150,412

 

Unaudited CondensedStatement of Changes in Equity

Six months to 30 November 2019

 

 

 

 

 

Income shares

 

Share capital

£000

Share premium account

£000

Capital redemption reserve

£000

 

Special reserve

£000

 

Capital reserves

£000

 

Revenue reserve

£000

Total shareholders' funds

£000

As at 31 May 2019

4,372

23,703

30

19,066

7,919

2,538

57,628

Increase in share capital in issue, net of issuance expenses

 

 

80

 

 

1,001

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,081

Share conversion

5

378

24

(321)

-

-

86

Transfer of net income from Growth to Income portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

321

 

 

321

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(321)

 

 

-

 

 

(321)

Dividends paid

-

-

-

-

-

(1,448)

(1,448)

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

2,442

 

1,182

 

3,624

As at 30 November 2019

 

4,457

 

25,082

 

54

 

18,745

 

10,040

 

2,593

 

60,971

 

 

 

 

 

 

 

 

Growth shares

 

 

 

 

 

 

 

As at 31 May 2019

3,563

21,417

186

17,117

30,830

-

73,113

Shares sold from Treasury

 

-

 

3

 

-

 

147

 

-

 

-

 

150

Shares purchased for treasury

 

-

 

-

 

-

 

(422)

 

-

 

-

 

(422)

Share conversion

(5)

306

20

(407)

-

-

(86)

Transfer of net income from Growth to Income portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(321)

 

 

(321)

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

321

 

 

-

 

 

321

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

3,034

 

321

 

3,355

As at 30 November 2019

 

3,558

 

21,726

 

206

 

16,435

 

34,185

 

-

 

76,110

 

Total Company

 

 

 

 

 

 

 

 

As at 31 May 2019

 

7,935

 

45,120

 

216

 

36,183

 

38,749

 

2,538

 

130,741

Increase in share capital in issue, net of share issuance expenses

 

 

 

80

 

 

 

1,001

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,081

Shares sold from treasury

 

-

 

3

 

-

 

147

 

-

 

-

 

150

Shares purchased for treasury

 

-

 

-

 

-

 

(422)

 

-

 

-

 

(422)

Share conversion

-

684

44

(728)

-

-

-

Dividends paid

-

-

-

-

-

(1,448)

(1,448)

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

5,476

 

1,503

 

6,979

Total Company

as at 30 November 2019

 

 

8,015

 

 

46,808

 

 

260

 

 

35,180

 

 

44,225

 

 

2,593

 

 

137,081

 

 

CondensedStatement of Changes in Equity (audited)

Year to 31 May 2020

 

 

 

 

Income Shares

 

Share capital

£000

Share premium account

£000

Capital redemption reserve

£000

 

Special reserve

£000

 

Capital reserves

£000

 

Revenue reserve

£000

Total shareholders' funds

£000

As at 31 May 2019

4,372

23,703

30

19,066

7,919

2,538

57,628

Increase in share capital in issue, net of share issuance expenses

 

 

260

 

 

3,206

 

 

-

 

 

-

 

 

-

 

 

-

 

 

3,466

Share conversion

5

-

-

81

-

-

86

Cancellation of deferred shares

 

(222)

 

-

 

222

 

-

 

-

 

-

 

-

Transfer of net income from Growth to Income portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

680

 

 

680

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(680)

 

 

-

 

 

(680)

Dividends paid

-

-

-

-

-

(2,713)

(2,713)

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

(6,999)

 

2,320

 

(4,679)

As at 31 May 2020

4,415

26,909

252

19,147

240

2,825

53,788

Growth Shares

 

 

 

 

 

 

 

As at 31 May 2019

3,563

21,417

186

17,117

30,830

-

73,113

Increase in share capital in issue, net of share issuance expenses

 

 

28

 

 

566

 

 

-

 

 

-

 

 

-

 

 

-

 

 

594

Shares sold from treasury

 

-

 

23

 

-

 

420

 

-

 

-

 

443

Shares purchased for treasury

 

-

 

-

 

-

 

(422)

 

-

 

-

 

(422)

Share conversion

(5)

-

-

(81)

-

-

(86)

Cancellation of deferred shares

 

(178)

 

-

 

178

 

-

 

-

 

-

 

-

Transfer of net income from Growth to Income portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(680)

 

 

(680)

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

680

 

 

-

 

 

680

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

451

 

680

 

1,131

As at 31 May 2020

3,408

22,006

364

17,034

31,961

-

74,773

Total Company

 

 

 

 

 

 

 

As at 31 May 2019

7,935

45,120

216

36,183

38,749

2,538

130,741

Increase in share capital in issue, net of share issuance expenses

 

 

288

 

 

3,772

 

 

-

 

 

-

 

 

-

 

 

-

 

 

4,060

Shares sold from treasury

 

-

 

23

 

-

 

420

 

-

 

-

 

443

Shares purchased for treasury

 

-

 

-

 

-

 

(422)

 

-

 

-

 

(422)

Share conversion

-

-

-

-

-

-

-

Cancellation of deferred shares

 

(400)

 

-

 

400

 

-

 

-

 

-

 

-

Dividends paid

-

-

-

-

-

(2,713)

(2,713)

Return attributable to shareholders

 

-

 

-

 

-

 

-

 

(6,548)

 

3,000

 

(3,548)

Total Company as at 31 May 2020

 

7,823

 

48,915

 

616

 

36,181

 

32,201

 

2,825

 

128,561

 

Notes

 

1.  Accounting policies

These condensed financial statements have been prepared on a going concern basis in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, FRS 102, FRS 104 Interim Financial Reporting and the Statement of Recommended Practice ("SORP") "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by The Association of Investment Companies ("AIC").

 

The accounting policies applied for the condensed financial statements are set out in the Company's annual report for the year ended 31 May 2020.

 

2.  Income

 

Six months to

30 November 2020

Six months to

30 November 2019

Year to

31 May

2020

 

£'000

£'000

£'000

UK dividends

1,579

1,285

2,679

Overseas dividends

530

626

1,144

Deposit income

-

16

28

Total income

2,109

1,927

3,851

 

3.  Investment management and performance fees

  During the period, the Company incurred investment management fees of £483,000 (30 November 2019: £447,000; 31 May 2020: £881,000) of which £250,000 was payable to BMO Investment Business Limited at the period end.  

 

At 30 November 2020 the adjusted total return of the Income portfolio for the period since 31 May 2020 (being the date a performance fee was last accrued) exceeded that of the FTSE All-Share Index and a performance fee of £114,000 was accrued in the Income portfolio at 30 November 2020 (30 November 2019: £25,000; 31 May 2020: £206,000).

 

At 30 November 2020 the adjusted total return of the Growth portfolio since 31 May 2020 (being the date a performance fee was last payable) exceeded that of the FTSE All-Share Index and a performance fee of £160,000 was accrued in the Growth portfolio at 30 November 2020 (30 November 2019: £nil; 31 May 2020: £263,000).

 

As the NAV per Income share at 31 May 2020 was less than the Watermark NAV at 31 May 2019 (the date a performance fee was last payable in the Income portfolio) payment of the performance fee of £206,000 which was accrued in the Income portfolio at 31 May 2020 is deferred until the end of the next financial year when the NAV per share for the Income portfolio is in excess of the Watermark NAV. If the Watermark NAV is not reached by the end of the fourth financial year subsequently, it will no longer be payable.

 

 

 

4.  Investments

 

Income shares

Level 1*

£'000

Growth shares

Level 1*

£'000

 

 

Total

£'000

Cost at 31 May 2020

Gains at 31 May 2020

51,603

6,284

46,858

25,498

98,461

31,782

Valuation at 31 May 2020

Movement in the period:

Purchases at cost

Sales proceeds

(Losses)/gains on investments sold in the period

Gains on investments held at period end

57,887

 

1,314

(1,529)

(575)

6,369

72,356

 

2,777

(2,053)

178

14,901

130,243

 

4,091

(3,582)

(397)

21,270

Valuation of investments held at 30 November 2020

 

63,466

 

88,159

 

151,625

 

 

Income shares

Level 1*

£'000

Growth shares

Level 1*

£'000

 

 

Total

£'000

Cost at 30 November 2020

Gains at 30 November 2020

50,813

12,653

47,760

40,399

98,573

53,052

Valuation at 30 November 2020

63,466

88,159

151,625

 

* Fair value hierarchy

 

 

 

Gains on investments

Income shares

£'000

Growth shares

£'000

 

Total

£'000

(Losses)/gains on investments sold in the period

Gains on investments held at period end

(575)

6,369

178

14,901

(397)

21,270

Valuation at 30 November 2020

5,794

15,079

20,873

 

 

The Company's investments as disclosed in the balance sheet are valued at fair value. The fair value as at the reporting date has been estimated using the following fair value hierarchy:

 

· Level 1 - quoted prices (unadjusted) in active markets for identical assets;

· Level 2 - investments whose value is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique whose variables includes only data from observable markets; and

· Level 3 - investments whose value is not based on observable market data.

 

There were no investments held which are valued in accordance with Levels 2 or 3.

 

 

5.  Return per share

 

 

 

Income shares

Growth shares

 

Revenue

Capital

Total

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Return attributable to portfolios

 

1,358

 

5,512

 

6,870

 

310

 

14,696

 

15,006

Transfer of net income from Growth to Income portfolio

 

 

310

 

 

-

 

 

310

 

 

(310)

 

 

-

 

 

(310)

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

(310)

 

 

(310)

 

 

-

 

 

310

 

 

310

Return attributable to shareholders

 

1,668

 

5,202

 

6,870

 

-

 

15,006

 

15,006

Return per share

3.57p

11.12p

14.69p

-

41.58p

41.58p

Weighted average number of shares in issue during the period

 

 

46,766,360

 

 

36,089,942

 

  The return per share for the comparative six months to 30 November 2019 is as follows:

 

 

Income shares

Growth shares

 

Revenue

Capital

Total

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Return attributable to portfolios

 

1,182

 

2,442

 

3,624

 

321

 

3,034

 

3,355

Transfer of net income from Growth to Income  portfolio

 

 

321

 

 

-

 

 

321

 

 

(321)

 

 

-

 

 

(321)

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

(321)

 

 

(321)

 

 

-

 

 

321

 

 

321

 Return attributable to shareholders

 

1,503

 

2,121

 

3,624

 

-

 

3,355

Return per share

3.40p

4.80p

8.20p

-

9.44p

9.44p

Weighted average number of shares in issue during the period

 

 

44,164,590

 

 

35,522,627

 

The return per share for the comparative year to 31 May 2020 is as follows:

 

 

Income shares

Growth shares

 

Revenue

Capital

Total

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Return attributable to portfolios

 

2,320

 

(6,999)

 

(4,679)

 

680

 

451

 

1,131

Transfer of net income from Growth to Income  portfolio

 

 

680

 

 

-

 

 

680

 

 

(680)

 

 

-

 

 

(680)

Transfer of capital from Income to Growth portfolio

 

 

-

 

 

(680)

 

 

(680)

 

 

-

 

 

680

 

 

680

 Return attributable to shareholders

 

3,000

 

(7,679)

 

(4,679)

 

-

 

1,131

Return per share

6.69p

(17.13p)

(10.44p)

-

3.18p

3.18p

Weighted average number of shares in issue during the period

 

 

44,837,359

 

 

35,573,520

 

 

 

6.  Dividends

 

 

 

 

 

Payment

Six months to

30 November

2020

Six months to

30 November

2019

Year to

31 May

2020

Dividends on Income shares

Date

£'000

£'000

£'000

Amounts recognised as distributions during the period:

 

 

 

 

 

In respect of the previous financial year:

 

 

 

 

 - fourth interim of 1.9p (prior period: 1.9p) per Income share

 

10 Jul 2020

 

883

 

831

 

831

In respect of the period under review:

 

 

 

 

- first interim of 1.4p (prior period: 1.4p) per Income share

 

9 Oct 2020

 

657

 

617

 

617

- second interim (prior period: 1.4p per Income share)

 

  -

 

-

 

-

 

628

- third interim (prior period: 1.4p per Income share)

 

  -

 

-

 

-

 

637

 

 

1,540

1,448

2,713

 

  A second interim dividend in respect of the year to 31 May 2021 of 1.4p per Income share was paid on 8 January 2021 to shareholders on the register on 18 December 2020. This amount has not been accrued in the results for the six months to 30 November 2020.

 

  For the financial year to 31 May 2020 interim dividends totalled 6.1p per Income share. 

 

  The Growth shares do not carry an entitlement to receive dividends.

 

7.  Share capital

 

Listed

Held in treasury

In issue

 

Number

£'000

Number

£'000

Number

£'000

Income shares

 

 

 

 

 

 

 

Balance at 1 June 2020^

 

46,485,537

 

4,415

 

-

 

-

 

46,485,537

 

4,415

Issued

400,000

38

-

-

400,000

38

 Share conversion:

 

 

 

 

 

 

-  Income to Growth

(258,490)

(25)

-

-

(258,490)

(25)

-  Growth to Income

142,743

14

-

-

142,743

14

Purchased for treasury

-

-

(25,000)

(2)

(25,000)

(2)

Balance at 30 November 2020^

46,769,790

4,442

(25,000)

(2)

46,744,790

4,440

 

 

Deferred shares -

Income

 

 

 

Number

£'000

 

 

 

 

Deferred shares - Income

 

 

 

 

 

 

Balance at 1 June 2020

-

-

 

 

 

 

Issue of 258,490 shares*

258,490

4

 

 

 

 

Balance at 30 November 2020

258,490

4

 

 

 

 

Total called-up share capital

 

4,446

 

 

 

 

 

^ The nominal value of each Income share is £0.094976101 per Income share.

* The nominal value of a Deferred share is £0.0164991878 per share.

 

During the period, the Company issued 400,000 Income shares (30 November 2019: 800,000; 31 May 2020: 2,700,000) from the block listing facilities receiving net proceeds of £488,000 (30 November 2019: £1,081,000; 31 May 2020: £3,466,000) and purchased for treasury 25,000 Income shares at a cost of £29,000.  At 30 November 2020, the Company held 25,000 Income shares in treasury (30 November 2019: nil; 31 May 2020: nil).

 

During the period, valid conversion notices were received to convert 258,490 Income shares (which represented a value of £301,000). These were converted into 130,294 Growth shares in accordance with the Company's Articles and by reference to the ratio of the relative underlying net asset values of the Growth shares and Income shares on the conversion date.

 

The Company's Articles allow for Deferred shares to be allotted as part of the share conversion to

ensure that the conversion does not result in a reduction of the aggregate par value of the Company's issued share capital. The Deferred shares issued as part of the share conversion in the current period are set out above. The Deferred shares will be repurchased by the Company from time to time as authorised by shareholders at the September 2020 AGM.

 

 

Listed

Held in treasury

In issue

 

Number

£'000

Number

£'000

Number

£'000

Growth shares

 

 

 

 

 

 

Balance at 1 June 2020^

35,888,210

3,408

-

-

35,888,210

3,408

Issued

450,000

43

-

-

450,000

43

Share conversion:

 

 

 

 

 

 

-  Growth to Income

(71,951)

(6)

-

-

(71,951)

(6)

-  Income to Growth

130,294

12

-

-

130,294

12

Balance at

30 November 2020^

 

36,396,553

 

3,457

 

-

 

-

 

36,396,553

 

3,457

 

 

Deferred shares -

 

 

 

 

Growth

 

 

 

 

 

Number

£'000

 

 

 

 

Deferred shares - Growth

 

 

 

 

 

 

Balance at 1 June 2020

-

-

 

 

 

 

Issue of 71,951 shares*

71,951

  1

 

 

 

 

Balance at 30 November 2020

71,951

  1

 

 

 

 

Total called-up share capital

 

  3,458

 

 

 

 

 

^ The nominal value of each Growth share is £0.094976101 per Growth share.

* The nominal value of a Deferred share is £0.0164991878 per share.

 

During the period, the Company issued 450,000 Growth shares (30 November 2019: nil; 31 May 2020: 295,000) from the block listing facilities receiving net proceeds of £1,056,000 (30 November 2019: £nil; 31 May 2020: £594,000).  At 30 November 2020, the Company held nil Growth shares in treasury (30 November 2019: 130,000; 31 May 2020: nil).

 

During the period, valid conversions were received to convert 71,951 Growth shares (which represented a value of £166,000). These were converted into 142,743 Income shares in accordance with the Company's Articles and by reference to the ratio of the relative underlying net asset values of the Growth shares and Income shares on the conversion date.

 

The Company's Articles allow for Deferred shares to be allotted as part of the share conversion to

ensure that the conversion does not result in a reduction of the aggregate par value of the Company's issued share capital. The Deferred shares issued as part of the share conversion in the current period are set out above. The Deferred shares will be repurchased by the Company from time to time as authorised by shareholders at the September 2020 AGM.

 

 

 

 

8.  Net asset value per share

 

30 November

2020

30 November

2019

31 May

2020

Income shares

 

 

 

Net asset value per share - pence

127.16p

136.75p

115.71p

Net assets attributable at end of

  period - £'000

 

59,442

 

60,971

 

53,788

Shares in issue at end of period - number

46,744,790

44,585,537

46,485,537

 

 

 

 

Growth shares

 

 

 

Net asset value per share - pence

249.94p

214.62p

208.35p

Net assets attributable at end of

  period - £'000

 

90,970

 

76,110

 

74,773

Shares in issue at end of period - number

36,396,553

35,463,210

35,888,210

 

9.  Reconciliation of return on ordinary activities before tax to net cash flows from operating activities

 

Six months to 30 November 2020

 

Income shares

£'000

 

 Growth shares

£'000

 

  Total

£'000

Return on ordinary activities before tax

Adjust for returns from non-operating activities:

6,870

 

15,006

21,876

Gains on investments

(5,794)

(15,079)

(20,873)

Exchange losses

13

-

13

1,089

(73)

1,016

Decrease in prepayments

5

5

10

Increase/(decrease) in creditors

112

(340)

(228)

Withholding tax recovered

37

-

37

Dividend income

(1,575)

(534)

(2,109)

Interest expense

55

-

55

 

(277)

 

(942)

 

(1,219)

     

 

 

Six months to 30 November 2019

 

Income shares

£'000

 

 Growth shares

£'000

 

  Total

£'000

Return on ordinary activities before tax

Adjust for returns from non-operating activities:

3,624

 

3,355

6,979

Gains on investments

(2,624)

(3,228)

(5,852)

Exchange losses

1

-

1

1,001

127

1,128

Increase in prepayments

-

(4)

(4)

(Decrease)/ increase in creditors

(45)

5

(40)

Withholding tax recovered

13

-

13

Dividend income

(1,407)

(504)

(1,911)

Interest income

(4)

(12)

(16)

Interest expense

55

-

55

 

(387)

 

(388)

 

(775)

     

 

 

 

 

 

 

Year to 31 May 2020

 

 

Income shares

£'000

 

 

Growth shares

£'000

 

 

Total

£'000

Return on ordinary activities before tax

Adjust for returns from non-operating activities:

(4,666)

 

1,131

(3,535)

Losses/(gains) on investments

6,472

(1,096)

5,376

Exchange losses

13

-

13

1,819

35

1,854

Decrease in prepayments

(3)

(6)

(9)

Increase in creditors

138

285

423

Withholding tax suffered

(5)

-

(5)

Dividend income

(2,769)

(1,054)

(3,823)

Interest income

(10)

(18)

(28)

Interest expense

110

-

110

 

(720)

 

(758)

 

(1,478)

     

 

 

10.  Earnings

  Earnings for the six months to 30 November 2020 should not be taken as a guide to the results for the full year to 31 May 2021.

 

11.  Tax

  The effective revenue tax rate for the period to 30 November 2020 is nil% (30 November 2019: nil%; 31 May 2020: 0.4%).  This is lower than the rate of corporation tax for small companies due to the level of non-taxable dividend income.

 

12.  Bank borrowing

  The Company has a £5 million fixed term loan to 10 February 2022 with The Royal Bank of Scotland International Limited. £5 million of the fixed term loan was drawn down as at 30 November 2020 at a fixed interest rate of 2.03% per annum.

 

During the period there were no changes in the amount borrowed and therefore no change in

liabilities arising from financing activities.

 

13.  Going concern

  In assessing the going concern basis of accounting, the Directors have had regard to the guidance issued by the Financial Reporting Council (including that related to COVID-19) and have undertaken a rigorous review of the Company's ability to continue as a going concern and specifically in the context of the COVID-19 pandemic .

 

The Company's investment objective and policy, which is subject to regular Board monitoring processes, is designed to ensure that the Company is invested principally in listed securities.  The value of these investments exceeds the Company's liabilities by a significant margin.

 

The Company retains title to all assets held by its custodian and has an agreement relating to its borrowing facility with which it has complied. Cash is only held with banks approved and regularly reviewed by the Manager.

 

  The Directors believe, having assessed the principal risks and other matters, including the COVID-19 pandemic and in light of the controls and review processes and bearing in mind the nature of the Company's business and assets and revenue and expenditure projections, that the Company has adequate resources to continue in operational existence within its stated investment policy for a period of at least twelve months commencing from the date of approval of the financial statements. Accordingly, the financial statements have been drawn up on the basis that the Company is a going concern.

 

  The Company does not have a fixed life. However, the Company's Articles of Association require the Board to put a resolution to shareholders at every fifth AGM to continue the Company. An ordinary resolution to approve the continuation of the Company was passed at the AGM held on 19 September 2018 and will next be put to shareholders at the AGM in 2023.

 

14Related party transactions

  The Directors of the Company are considered a related party.  There have been no transactions with related parties during the first six months of the current financial year that have materially affected the financial position or performance of the Company during the period and there have been no changes in the related party transactions described in the last Annual Report that could do so.

 

15.  Results

  The Company's auditor, KPMG LLP, has not audited or reviewed the Interim Report to 30 November 2020 pursuant to the Auditing Practices Board guidance on 'Review of Interim Financial Information'. These are not full statutory financial statements in terms of Section 434 of the Companies Act 2006 and are unaudited.  Statutory financial statements for the year ended 31 May 2020, which received an unqualified audit report, and which did not contain a statement under Section 498 of the Companies Act 2006, have been lodged with the Registrar of Companies.  The abridged financial statements included for the year ended 31 May 2020 are an extract from those financial statements.  No full statutory financial statements in respect of any period after 31 May 2020 have been reported on by the Company's auditor or delivered to the Registrar of Companies.

 

 

 

Statement of Principal Risks and Uncertainties

 

Most of the Company's principal risks and uncertainties that could threaten the achievement of its objective; strategy, future performance, liquidity and solvency are market related and comparable to those of other investment trusts investing primarily in listed securities.

 

These risks, and the way in which they are managed, are described in more detail under the

heading ''Principal Risks and Uncertainties and Viability Statement" within the Strategic Report in

the Company's Annual Report for the year ended 31 May 2020.

 

The Company's principal risks and uncertainties have not changed materially since the date of that

report and are not expected to change materially for the remainder of the Company's financial year.

 

The principal risks identified in the Annual Report were:

 

· Market Risk. The Company's assets consist mainly of listed closed-end investment companies and its principal financial risks are therefore market related and include market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk

 

· Investment Risk

 

· Custody Risk

 

· Operational Risk

 

These include risks in relation to failures at service providers or loss or sabotage of data through

cyber threats or business continuity failure.

 

The Board has also considered the impact of Coronavirus (COVID-19) which has

increased uncertainty and volatility in markets and has impacted the value of investments. In

addition the operational resilience of the Manager and the Company's other third party service providers has been considered. This is included within financial risk and operational risk.

 

 

 

 

 

 

 

 

 

Statement of Directors' Responsibilities in Respect of the Interim Report

 

We confirm, that to the best of our knowledge:

 

· the condensed set of financial statements have been prepared in accordance with applicable UK Accounting Standards on a going concern basis and give a true and fair view of the assets, liabilities, financial position and return of the Company;

 

· the Chairman's Statement and the Statement of Principal Risks and Uncertainties (together constituting the Interim Management Report) include a fair review of the information required by the Disclosure Guidance and Transparency Rule ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements;

 

· the Statement of Principal Risks and Uncertainties is a fair review of the principal risks and uncertainties for the remainder of the financial year; and

 

· the Interim Report includes a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during the period, and any changes in the related party transactions described in the last Annual Report that could do so.

 

 

 

On behalf of the Board

 

Colin S McGill

Director

27 January 2021

 

 

 

 

 

Alternative Performance Measures ("APMs")

The Company uses the following APMs:

Discount/premium - the share price of an investment company is derived from buyers and sellers trading their shares on the stock market. This price is not identical to the net asset value (NAV) per share of the underlying assets less liabilities of the Company. If the share price is lower than the NAV per share, the shares are trading at a discount. This usually indicates that there are more sellers of shares than buyers. Shares trading at a price above NAV per share are deemed to be at a premium usually indicating there are more buyers of shares than sellers.

 

 

 

30 November 2020

31 May 2020

 

 

Income shares

Growth shares

Income shares

Growth shares

 

 

 

 

 

 

Net asset value per share

(a)

127.16p

249.94p

115.71p

208.35p

Share price

(b)

127.00p

251.00p

117.50p

212.00p

-Discount/+premium

(c=(b-a)/(a))

 

(c)

 

 -0.1%

 

+0.4%

 

+1.5%

 

+1.8%

 

Total return - the return to shareholders calculated on a per share basis taking into account both any dividends paid in the period to the increase or decrease in the share price or NAV in the period. The dividends are assumed to have been re-invested in the form of shares or net assets, respectively, on the date on which the shares were quoted ex-dividend.

The effect of reinvesting these dividends on the respective ex-dividend dates and the share price total returns and NAV total returns are shown below.

 

 

Six months to

Year to

 

30 November 2020

31 May 2020

 

Income shares

Growth shares

Income shares

Growth shares

 

 

 

 

 

NAV per share at start of financial period/year

 

115.71p

 

208.35p

 

131.81p

 

205.17p

NAV per share at end of financial period/year

 

127.16p

 

249.94p

 

115.71p

 

208.35p

Change in the period/year

9.9%

20.0%

-12.2%

1.5%

Impact of dividend reinvestment (1)

3.1%

n/a

4.9%

n/a

NAV total return for the period/year

13.0%

20.0%

-7.3%

1.5%

 

 (1) During the six months to 30 November 2020 dividends totalling 3.3p went ex-dividend with respect to the Income shares. During the year to 31 May 2020 the equivalent figure was 6.1p.

 

 

 

Six months to 30 November 2020

Year to 31 May 2020

 

Income shares

Growth shares

Income shares

Growth shares

 

 

 

 

 

 

 

 

 

 

Share price per share at start of financial period/year

 

117.5p

 

212.0p

 

134.5p

 

206.0p

Share price per share at end of financial period/year

 

127.0p

 

251.0p

 

117.5p

 

212.0p

Change in the period/year

8.1%

18.4%

-12.6%

2.9%

Impact of dividend reinvestment (1)

 

3.0%

 

n/a

 

4.3%

 

n/a

Share price total return for the period/year

 

11.1%

 

18.4%

 

-8.3%

 

2.9%

 

(1) During the six months to 30 November 2020 dividends totalling 3.3p went ex-dividend with respect  

  to the Income shares.  During the year to 31 May 2020 the equivalent figure was 6.1p.

 

 

Yield -

 

 

 

30 November 2020

31 May 2020

Annual dividend

(a)

6.1p(1)

6.1p

Income share price

(b)

127.0p

117.5p

Yield (c=a/b)

(c)

4.8%

5.2%

 

(1)  Based on dividends at the expected minimum annual rate of 6.10 pence per Income share for the

  financial year to 31 May 2021.

 

Net gearing/net cash - this is the ratio of the borrowings of the Company to its net assets. If the Company has cash assets, these may be assumed to net off against borrowings giving a "net" gearing percentage. Where cash assets exceed borrowings, the Company is described as having "net cash".

 

 

30 November 2020

31 May 2020

 

Income shares

Growth shares

Income shares

Growth shares

 

£'000

£'000

£'000

  £'000

 

 

 

 

 

Borrowing

  (5,000)

  -

  (5,000)

  -

Cash

   1,237

  3,127

   1,061

  3,071

 

  (3,763)

  3,127

  (3,939)

  3,071

Net assets

  59,442

  90,970

  53,788

  74,773

 

-Net gearing/ +net cash

 

-6.3%

 

+3.4%

 

-7.3%

 

  +4.1%

 

 

Compound annual growth rate - converts the NAV total return over a period of more than one year to a constant annual rate of return applied to the compounded value at the start of each year.

 

   30 November 2020

 

 

Income

shares

Growth

shares

Indexed NAV total return at 30 November 2010

 

100.0

100.0

Indexed NAV total return at 30 November 2020

 

212.2

259.5

Period (years)

 

10.0

10.0

Compound annual growth rate

 

7.8%

10.0%

 

 

 

 

For further information, please contact:

 

Peter Hewitt, BMO Investment Business Limited    0131 718 1244

Ian Ridge, BMO Investment Business Limited                 0131 718 1010

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR BIGDBUUDDGBR
UK 100

Latest directors dealings