Final Results

RNS Number : 8275T

Henderson Eurotrust PLC

09 October 2014

 



This announcement contains regulated information

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Investment objective

The objective of Henderson EuroTrust plc ("the Company") is to invest predominantly in large and medium-sized companies which are perceived to be undervalued in view of their growth prospects or on account of a significant change in management or structure. The Company aims to achieve a superior total return from a portfolio of high quality European investments.

Performance highlights

•           The net asset value ("NAV") total return¹ (including dividends reinvested) was 5.4% compared to a total return from the benchmark index² of 4.1%.

•           Increased proposed annual dividend: final dividend 12.50p, (2013: 12.00p) producing a total dividend for the year of 17.50p (2013: 12.00p and 5.00p respectively). The dividend has increased progressively every year over the last ten years.

•           The discount³ narrowed from 6.9% to 0.9%.

Total return performance (including dividends reinvested)
	1 year %	3 years %	5 years %	10 years %
NAV per ordinary share	5.4	38.6	84.8	226.3
AIC Europe Sector (Peer Group) Average Net Asset Value4	3.8	33.5	82.1	182.7
FTSE  World Europe (ex UK) Index	4.1	25.6	55.7	142.3

1 These figures are preliminary estimates made by the AIC, which is the industry recognised source for performance data, and do not reflect any subsequent change in the year end NAVs reflected in this report

2 FTSE World Europe (ex UK) Index

3 Calculated using published daily NAVs including current year revenue

4 AIC Europe sector (Peer Group). Size weighted average (shareholders' funds)

Financial Highlights
	31 July 2014 pence per share	31 July 2013 pence per share	Change%
Net Asset Value	803.2	778.0	3.2
Revenue Return	17.6	17.3	1.7
Dividends	17.5	17.0	2.9

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

MANAGEMENT REPORT

Chairman's Statement

Performance

In my first report as Chairman, I am very pleased to be able to report another year of positive returns to shareholders, and outperformance of the Company's benchmark by our Fund Manager. The benchmark index (the FTSE World Europe (ex UK) Index) rose by 4.1% over the period in sterling terms compared to a rise in the Company's net asset value ("NAV") of 5.4% on a total return basis. I am also pleased to report that the discount at which the Company's shares trade in comparison to NAV narrowed significantly over the year to 0.9% at the year end from 6.9% at 31 July 2013.

Revenue and dividends

The Board proposes a final dividend of 12.50p, taking the total distribution for the year to 17.50p, a 2.9% increase on last year. In the year under review no shares were bought back by the Company. Although earnings growth has been less than was originally anticipated, dividend growth from the portfolio has been adequate to enable us to make a small increase in the final dividend.

Charges and fees

Shareholders will be aware that, following a formal review, and with effect from the beginning of the financial year to July 2014, the management fee has been reduced to 0.65% of net chargeable assets (previously 0.7%). This has reduced the fee by £85,000 for the year to 31 July 2014, as compared with the previous fee basis. The Company continues to pay a performance fee to Henderson, which is now set at the rate of 15% of any outperformance over the Company's benchmark, with an additional 1% hurdle to be achieved before any performance fee is due. Any prior underperformance must also be recouped before a performance fee can be earned.

Over the past year, ongoing charges, which are the management fee and other non-interest expenses as a percentage of shareholders' funds, were 0.82% (2013: 0.94%) excluding the performance fee and 0.87% (2013:1.08%) including the performance fee.  A performance fee of £78,000 (wholly charged to capital) was earned in respect of the year to 31 July 2014. Your Board continues to believe that payment of a performance fee is in the interests of shareholders.

Regulatory

In accordance with the Alternative Investment Fund Managers Directive ("AIFMD"), the Company has appointed Henderson Investment Funds Limited to act as its Alternative Investment Fund Manager. HSBC Bank plc has been appointed as the Company's Custodian and Depositary.

The work associated with the implementation of the AIFMD was completed in due time with the support of Henderson. Whilst this has been necessary, it has taken up a considerable amount of time during Board meetings over the past year.

Annual general meeting ("AGM")

The Company's AGM will be held on Wednesday 12 November 2014 at 2.30pm at Henderson's offices at 201 Bishopsgate, London EC2M 3AE. Full details of the business of the meeting are set out in the Notice which has been sent to shareholders with the Annual Report. Tim Stevenson will make an investment presentation after the formal business has been concluded and the Board will be pleased to answer questions from shareholders.

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Chairman's Statement (continued)

Board composition

Mark Tapley retired as Chairman on 26 March 2014. I would like to thank Mark on behalf of shareholders and the Board, for his valuable contribution to the Company over many years. I have been fortunate to inherit a high quality board. The Board of four individuals bring an exceptionally wide range of expertise relevant to the Company. I would like to assure shareholders that the Board remains committed to reviewing its operation and composition (including the number of Directors), to ensure that it continues to provide robust and relevant governance to the Company.

Investment approach and outlook

Our investors have two choices to make: whether equity investments in Continental Europe are an attractive home for their money, and whether they support the investment approach followed by Henderson EuroTrust. With regard to the investment approach, Tim Stevenson, the Fund Manager, continues to invest primarily in companies with sound businesses which are expected to produce long-term dividend growth and are not over-reliant on the economic cycle moving in their favour. The Fund Manager has been following this approach for many years and, against a challenging economic and political backdrop is even more committed to investing the bulk of the portfolio in such companies. Over the past year, the portfolio has become slightly more concentrated, and turnover has been reduced, developments consistent with the underlying investment thesis. Despite a list of macro-economic concerns we continue to be optimistic about the prospects for the portfolio. Although no investment approach can perform in every environment, we believe that the Company remains an attractive investment, both relative to the index and in absolute terms, over the economic cycle. This optimism is reflected in the fact that the portfolio remains modestly geared (0.9% at the end of July). The Fund Manager is prepared to add tactically to the invested portfolio through the use of additional gearing should attractive individual opportunities present.

Nicola Ralston

Chairman

Principal risks and uncertainties

The Board has drawn up a matrix of risks facing the Company and has put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy, in order to mitigate these risks as far as practicable. The principal risks which have been identified and the steps taken by the Board to mitigate these are as follows:

• Investment activity and performance

An inappropriate investment strategy (for example, in terms of asset allocation or the level of gearing) may result in underperformance against the Company's benchmark index and the companies in its peer group. The Board monitors investment performance at each Board meeting and regularly reviews the extent of its borrowings.

• Portfolio and market

Although the Company invests almost entirely in securities that are quoted on recognised markets, share prices may move rapidly. The companies in which investments are made may operate unsuccessfully, or fail entirely. A fall in the market value of the Company's portfolio would have an adverse effect on shareholders' funds. The Board reviews the portfolio at each meeting and mitigates risk through diversification of investments in the portfolio.

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Principal risks and uncertainties (continued)

• Regulatory

A breach of Section 1158 could lead to a loss of investment trust status, resulting in capital gains realised within the portfolio being subject to corporation tax. A breach of the UKLA Listing Rules could result in suspension of the Company's shares, while a breach of the Companies Act 2006 could lead to criminal proceedings, or financial or reputational damage. Henderson is contracted to provide investment, company secretarial, administration and accounting services through qualified professionals. The Board receives internal controls reports produced by the Manager on a quarterly basis, which confirm regulatory compliance.

• Operational

Disruption to, or failure of, the Manager's accounting, dealing or payment systems or the custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. The Company is also exposed to the operational risk that one or more of its suppliers may not provide the required level of service.

Details of how the Board monitors the services provided by Henderson and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal controls section of the Corporate Governance Statement in the Annual Report. Further details of the Company's exposure to market risk (including market price risk, currency risk and interest rate risk), liquidity risk and credit and counterparty risk and how they are managed are contained in Note 15 of the Annual Report.

Related party transactions

Other than the relationship between the Company and its Directors, the provision of services by Henderson is the only related party arrangement currently in place.  Other than fees payable by the Company in the ordinary course of business, and the provision of marketing services, there have been no material transactions with the related party which have affected the financial position or performance of the Company during the year under review.

Statement of Directors' Responsibilities

In accordance with Disclosure and Transparency Rule 4.1.12, each of the Directors confirm to the best of his or her knowledge that:

(a) the Company's financial statements, which have been prepared in accordance with UK Accounting Standards on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

(b) the Strategic Report and financial statements 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 it faces.

Signed for and on behalf of the Board

Nicola Ralston

Chairman

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Fund Manager's Report

Overview and performance

The closing line of my report a year ago ended on an optimistic note, stating that "…the expectation now (realistic in my view) is for earnings to increase in 2014, which should enable markets to continue gradually to appreciate from current levels". This has turned out to be reasonably accurate, in that markets have appreciated by 4.1% on a total return basis. We have kept ahead of the index, and show an accretion of 5.4%, an outperformance of 1.3%. But there have been a number of headwinds, not least of which has been the fact that Sterling has risen by 10.5% against the Euro.

European economies and earnings have begun to recover, but in both cases, expectations have been too high. I continue to believe that growth will be low, and in such an environment I have continued to build the reliable growth names, many of which we have held for years. European markets started the year strongly, but during the last few months enthusiasm has waned significantly, and with it the strong flows into European equities from funds both within and outside the Euro area. This consolidation is in my view very welcome, and provided current concerns over Global issues such as Ukraine, the Middle East and Ebola do not escalate too far, markets should be able to resume their uptrend. There is still every reason why the growth in earnings should start to come through more clearly over the next twelve months. I suspect that the areas which will do best are more likely to be the reliable growth names rather than banks and cyclicals, and we continue to adjust the holdings accordingly.

Portfolio changes and approach

It has been a complicated year, and we are steering a course between the good news of signs of economic recovery, and the less good news that the recovery is likely to remain weak. The fact that economic growth is recovering has encouraged us to add some companies where growth is closely linked to the economic environment such as, E.ON, St Gobain, and ABB. Furthermore we now have three companies involved in the fast developing area of auto components, with Continental and Autoliv added to our existing position in Valeo. All these companies are seeing increasing sales as cars are becoming more high tech. We have also added Infineon (semiconductors), and Qiagen which is involved in equipment for analysing genes (DNA analysis).

The Henderson European Team has been strengthened significantly over the last few years, and will be strengthened further. I am backed by three outstanding analysts, and three further highly experienced fund managers, with whom I discuss many ideas. We also have two further colleagues covering small cap stocks, some of which (Aareal Bank, OW Bunker) have made their way into my fund as a result of their hard work. I am grateful to them all for their help, but ultimately it is my hand on the tiller. This is the strongest crew with me that I have experienced in my 28 years with Henderson.

Fourteen positions have been sold. The realised profit on the sales reached £17 million, far outweighing the realised losses. At the end of the year there were 51 positions - one fewer than the previous year. In general, we sell a position when we feel the growth prospects have, or may be about to start deteriorating.

The level of turnover has declined during the year to 57.5% (2013: 72.3%), calculated as the lesser of purchases or sales, divided by average assets. I am more than ever convinced a longer term view is one route to more successful investment. In the world of algorithmic trading and high frequency traders and generalised churning of portfolios, I think it is wiser to go in the opposite direction and exercise greater patience. In a number of cases I have spent some time listening to a company's projections for its business in 2020. That is only five years away, and in many cases we are receiving an annual payment worth anywhere from 2% to 5% as a reward for waiting. The fact that we have achieved very strong long term outperformance supports my case that "patience pays". However we are not complacent when matters are not panning out as we expected over a long period.

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Fund Manager's Report (continued)

In financials we have become more cautious. A year ago I highlighted two more "quite stressed" banks which were in the early stages of recovery (ING and Commerzbank). ING has performed well on a twelve month basis, and we continue to believe that it is making good progress. In Commerzbank we have taken a profit, as the forthcoming "Asset Quality Review" (AQR) by the ECB may lead them to seek another capital increase. We have seen very strong performance from Aareal and continue to hold it as we expect a good flow of dividends over the next few years. In contrast UBS has been disappointing, as it looks set to incur heavy fines from US authorities for various alleged misdemeanours (in common with many banks).

Outlook

It seems to be a feature of August each year (when I start to write this report) that there is a long list of worries.  Coinciding with the commemorations of the start of the First World War, Europe's structure and level of integration are facing extreme challenge. The Russia-Ukraine conflict may lead to significant unrest, while the Middle East is also in a highly problematic state. The USA and UK are preparing to tighten monetary policy in response to better growth, while most of the Euro area continues to struggle with low growth and low inflation. Earnings have failed to come through as expected so far. Some globally active fund managers with shorter term investment horizons have become frustrated with Europe's lack of progress and have started to withdraw funds from the region. This latter development is, in my view, quite good news. The impatience of short term investors could provide a good opportunity for those with greater reserves of perseverance. From our many meetings with companies, I actually feel they are in better health in most cases than has been the case for years. Valuations of European markets look quite high -  the price earnings ratio on average for the Europe (excluding UK) markets has risen from a low of 8.4x in 2011 to a recent level of 13.8x prospective earnings. But I do believe those earnings will start to come through, and the recent weakness of the Euro against the US Dollar will also help. Furthermore, the average price earnings ratio of the higher growth companies (many of which we hold) has actually declined over the last twelve months. Since their growth is now accelerating again, their valuation has swung more firmly in our favour. I have therefore been using recent weakness to gradually add to quality names, and we have much of our borrowing facility available for use.

Tim Stevenson

Fund Manager

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Twenty Largest Holdings

These twenty largest investments total £86,185,000 representing 52.2 % by value (2013: 51.8%) of the total investments.

	Name of Investment	Country	Sub-sector	2014 Valuation £'000
1	Deutsche Post	Germany	Air Freight & Logistics	8,546
2	Partners Group	Switzerland	Financial Services	5,492
3	Roche	Switzerland	Pharmaceuticals & Biotechnology	5,328
4	Fresenius	Germany	Health Care	5,248
5	Novartis	Switzerland	Pharmaceuticals & Biotechnology	5,127
6	Maersk	Denmark	Marine	5,040
7	Sodexo	France	Catering Services	4,793
8	Statoil	Norway	Oil & Gas Producers	4,692
9	Fresenius Medical Care	Germany	Health Care	4,249
10	Valeo	France	Automobiles & Parts	4,124
Top Ten Investments				52,639

The Top Ten Investments by value account for 31.9% of the total value of investments (2013: 30.1%)

	Name of Investment	Country	Sub-sector	2014 Valuation £'000
11	Groupe Eurotunnel	France	Industrial Transportation	4,702
12	Richemont	Switzerland	Consumer Discretionary	3,483
13	AXA	France	Insurance	3,388
14	Continental	Germany	Automobiles and Parts	3,286
15	Nestle	Switzerland	Food Producers	3,277
16	Autoliv	Sweden	Automobiles and Parts	3,270
17	Adecco	Switzerland	Professional Services	3,205
18	Deutsche Telekom	Germany	Telecommunications	3,202
19	Aareal Bank	Germany	Financial Services	3,196
20	Intesa Sanpaolo	Italy	Banks	3,167
Top Twenty  Investments				86,185

The Top Twenty Investments by value account for 52.2% of the total value of investments (2013: 51.8%).

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Sector exposure at 31 July

As a percentage of the investment portfolio excluding cash

	31 July 2014	31 July 2013
Oil and Gas	5.5	3.1
Basic Materials	1.9	3.5
Industrials	25.1	23.2
Consumer Goods	19.3	16.2
Health Care	15.1	15.3
Consumer Services	7.6	6.5
Financials	16.8	25.9
Technology	5.8	4.8
Telecommunications	1.9	1.5
Utilities	1.0	0.0

Geographical exposure at 31 July

As a percentage of the investment portfolio excluding cash

	31 July 2014	31 July 2013
Austria	1.6	1.8
Denmark	7.3	5.6
France	21.7	24.6
Germany	28.2	28.0
Italy	3.0	1.3
Netherlands	4.4	5.3
Norway	2.8	1.3
Spain	3.6	4.0
Sweden	5.4	5.4
Switzerland	22.0	22.7

Portfolio distribution by market capitalisation

Market cap	% of portfolio at 31 July 2014	% Benchmark weight                         at 31 July 2014
>£20bn	51.0	59.0
£10bn - £20bn	12.2	16.9
£5bn - £10bn	19.9	14.6
£1bn - £5bn	15.6	9.5
<£1bn	1.3	0.1

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Audited Income Statement

for the year ended 31 July

	Year ended 31 July 2014			Year ended 31 July 2013
	Revenue return £'000	Capital return £'000	Total £'000	Revenue     return £'000	Capital  return £'000	Total £'000
Gains on investments held at fair value through profit or loss (note 2)	-	6,017	6,017	-	41,270	41,270
Investment income (note 3)	4,628	-	4,628	4,530	-	4,530
Interest received	2	-	2	-	-	-
	---------	----------	---------	---------	----------	---------
Gross revenue and capital gains	4,630	6,017	10,647	4,530	41,270	45,800
Management and performance fees	(219)	(955)	(1,174)	(207)	(1,018)	(1,225)
Other administrative expenses	(344)	-	(344)	(276)	-	(276)
	---------	----------	---------	---------	----------	----------
Net return on ordinary activities before finance charges and taxation	4,067	5,062	9,129	4,047	40,252	44,299
Finance charges	(12)	(51)	(63)	(19)	(75)	(94)
	---------	----------	---------	---------	----------	----------
Net return on ordinary activities before taxation	4,055	5,011	9,066	4,028	40,177	44,205
Taxation on net return on ordinary activities	(473)	-	(473)	(503)	-	(503)
	---------	----------	---------	---------	----------	----------
Net return on ordinary activities after taxation	3,582	5,011	8,593	3,525	40,177	43,702
	=====	=====	=====	=====	=====	=====
Return per ordinary share basic and diluted (note 4)	17.6p	24.5p	42.1p	17.3p	197.0p	214.3p
	=====	=====	=====	=====	=====	=====

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

All revenue and capital items in the above statement derive from continuing operations. 

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

The Company had no recognised gains or losses other than those disclosed in the Income Statement.

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Audited Reconciliation of Movements in Shareholders' Funds

for the year ended 31 July 

Year ended 31 July 2014	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Capital reserves £'000	Revenue reserve £'000	Shareholders' funds total £'000
At 1 August 2013	1,020	33,814	263	118,853	4,695	158,645
Net return on ordinary activities   after taxation	-	-	-	5,011	3,582	8,593
Final dividend paid in respect of   the year ended 31 July 2013   (paid 20 November 2013)	-	-	-	-	(2,447)	(2,447)
Interim dividend paid in respect of   the year ended 31 July 2014   (paid 25 April 2014)	-	-	-	-	(1,020)	(1,020)
	----------	-----------	----------	-----------	----------	------------
At 31 July 2014	1,020	33,814	263	123,864	4,810	163,771
	======	======	======	=======	======	=======
Year ended 31 July 2013	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Capital reserves £'000	Revenue reserve £'000	Shareholders' funds total £'000
At 1 August 2012	1,020	33,814	263	78,676	4,534	118,307
Net return on ordinary activities after taxation	-	-	-	40,177	3,525	43,702
Final dividend paid in respect of   the year ended 31 July 2012   (paid 20 November 2012)	-	-	-	-	(2,344)	(2,344)
Interim dividend paid in respect of   the year ended 31 July 2013   (paid 26 April 2013)	-	-	-	-	(1,020)	(1,020)
	---------	----------	---------	----------	---------	------------
At 31 July 2013	1,020	33,814	263	118,853	4,695	158,645
	=====	======	=====	======	=====	=======

HENDERSON EUROTRUST PLC 

Annual Report for the year ended 31 July 2014

Audited Balance Sheet

As at 31 July

	2014 £'000	2013 £'000
Fixed asset investments held at fair value through   profit or loss
Listed at market value  -  overseas	165,206	164,956
	----------	----------
Current assets
Debtors	776	334
Cash at bank and in hand	1,513	3,520
	---------	---------
	2,289	3,854
Creditors: amounts falling due within one year	(3,724)	(10,165)
	---------	---------
Net current liabilities	(1,435)	(6,311)
	---------	---------
Net assets	163,771	158,645
	======	======
Capital and reserves
Called up share capital (note 7)	1,020	1,020
Share premium account	33,814	33,814
Capital redemption reserve	263	263
Capital reserves	123,864	118,853
Revenue reserve	4,810	4,695
	-----------	----------
Total shareholders' funds	163,771	158,645
	======	======
Net asset value per ordinary share   (basic and diluted) (note 6)	803.2p	778.0p
	======	======

HENDERSON EUROTRUST PLC

Annual  Report for the year ended 31 July 2014

Audited Cash Flow Statement

for the year ended 31 July

	2014		2013
	£'000	£'000	£'000	£'000
Net cash inflow from operating activities		2,407		1,651
Servicing of finance
Interest paid	(64)		(92)
	--------		--------
Net cash outflow from servicing of finance		(64)		(92)
Taxation
Overseas tax recovered	4		251
	--------		--------
Net tax recovered		4		251
Financial investment
Purchases of investments	(96,856)		(101,312)
Sales of investments	100,842		98,724
	----------		----------
Net cash inflow/(outflow) from financial investment		3,986		(2,588)
Equity dividends paid		(3,467)		(3,364)
		---------		---------
Net cash inflow/(outflow) before financing		2,866		(4,142)
Financing
(Repayment)/drawdown of loans	(4,729)		6,263
	--------		--------
Net cash (outflow)/inflow from financing		(4,729)		6,263
		--------		---------
(Decrease)/increase in cash		(1,863)		2,121
		=====		======
Reconciliation of net cash flow to movement in net debt		2014 £'000		2013 £'000
(Decrease)/increase in cash as above		(1,863)		2,121
Exchange movements		425		(615)
Net cash outflow/(inflow) from decrease/(increase) in loans		4,729		(6,263)
		---------		---------
Change in net funds/debt resulting from cash flows		3,291		(4,757)
Net (debt)/funds at 1 August		(4,709)		48
		---------		--------
Net debt at 31 July		(1,418)		(4,709)
		======		=====
Represented by:
Cash and cash equivalents		1,513		3,520
Bank loans		(2,931)		(8,229)
		---------		--------
		(1,418)		(4,709)
		======		=====

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

Notes:

1.	Accounting Policies
	Basis of accounting
	The financial statements have been prepared on a going concern basis and under the historical cost basis of accounting, modified to include the revaluation of investments at fair value through profit or loss. The financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under the standards and with the Statement of Recommended Practice ('SORP') for investment trusts issued by the Association of Investment Companies ('the AIC') in January 2009. The Company's accounting policies are consistent with the prior year.
2.	Gains on investments held at fair value through profit or loss
			2014 £'000	2013 £'000
	Gains on the sale of investments based on historical cost		15,900	14,251
	Less: revaluation gains recognised in previous years		(13,704)	(4,702)
			----------	----------
	Gains on investments sold in the year based on carrying value at the previous balance sheet date		2,196	9,549
	Revaluation of investments held at 31 July		3,434	32,310
	Exchange gains/(losses)		387	(589)
			----------	----------
			6,017	41,270
			======	======
3.	Investment income		2014 £'000	2013 £'000
	Overseas dividend income		4,628	4,530
			=====	=====
4.	Return per ordinary share basic and diluted
	The total return per ordinary share is based on the net return attributable to the ordinary shares of £8,593,000 (2013: £43,702,000) and on 20,390,541 ordinary shares (2013: 20,390,541) being the weighted average number of shares in issue during the year.
	The total return can be further analysed as follows:
		2014 £'000		2013 £'000
	Revenue return	3,582		3,525
	Capital return	5,011		40,177
		----------		----------
	Total return	8,593		43,702
		======		========
	Weighted average number of ordinary shares	20,390,541		20,390,541
	Revenue return per ordinary share	17.6p		17.3p
	Capital return per ordinary share	24.5p		197.0p
		----------		----------
	Total return per ordinary share	42.1p		214.3p
		======		=====

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

5.	Dividends on ordinary shares
						2014 £'000
	Revenue available for distribution by way of dividend for the year					3,582
	Interim dividend of 5.0p paid 25 April 2014					(1,020)
	Proposed final dividend for the year ended 31 July 2014 of 12.50p (based on 20,390,541 ordinary shares in issue at 8 October 2014)					(2,549)
						-----------
	Undistributed revenue for section 1158 purposes*					13
						======
	*Undistributed revenue comprises 0.3% of the total income of £4,630,000. The proposed final dividend of 12.5p per share for the year ended 31 July 2014 is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed final dividend of 12.5p per ordinary share will be paid on 21 November 2014 to shareholders on the register of members at the close of business on 17 October 2014. The shares will be quoted ex-dividend on 16 October 2014.
6.	Net asset value per ordinary share
	The net asset value per ordinary share of 803.2p (2013: 778.0p) is based on the net assets attributable to the ordinary shares of £163,771,000 (2013: £158,645,000) and on 20,390,541 (2013: 20,390,541) ordinary shares in issue at the year end.  There were no shares held in Treasury at the year end (2013: nil).
7.	Called up share capital
			Number of shares entitled to dividend	Total number of shares	Nominal value of shares £'000
	Ordinary shares of 5p each - authorised			75,000,000	3,750
				========	=====
	Balance at start and end of the year		20,390,541	20,390,541	1,020
			========	========	=====
	During the year no ordinary shares were repurchased (2013: none).  Since the year end no shares have been repurchased.
8.	Going Concern Statement
	The directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements as the assets of the Company consist mainly of securities which are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future. In reviewing the position as at the date of this statement, the Board has considered the "Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009" published by the Financial Reporting Council in October 2009.

HENDERSON EUROTRUST PLC

Annual Report for the year ended 31 July 2014

9.	2014 Financial information
	The figures and financial information for the year ended 31 July 2014 are extracted from the Company's annual financial statements for that period and do not constitute statutory financial statements for that period. The Company's annual financial statements for the year ended 31 July 2014 have been audited but have not yet been delivered to the Registrar of Companies. The Independent Auditors' Report on the 2014 financial statements was unqualified, did not include a reference to any matter to which the Auditors drew attention without qualifying the report, and did not contain any statements under sections 498(2) and 498(3) of the Companies Act 2006.
10.	2013 Financial information
	The figures and financial information for the year ended 31 July 2013 are compiled from an extract of the published financial statements of the Company and do not constitute statutory financial statements for that year. The Company's annual financial statements have been delivered to the Registrar of Companies and included the Independent Auditors' Report which was unqualified and did not contain a statement under either section 498(2) and 498(3) of the Companies Act 2006.
11.	Annual Report and Annual General Meeting
	The Annual Report for the year ended 31 July 2014 will be posted to shareholders in October 2014 and copies will be available on the Company's website (www.hendersoneurotrust.com) or in hard copy format from the Company's Registered Office, 201 Bishopsgate, London EC2M 3AE. The Annual General Meeting will be held at the registered office on Thursday 14 November 2013 at 2.30 pm. The Notice of the Annual General Meeting will be posted to shareholders with the Annual Report.

For further information please contact:

Tim Stevenson Fund Manager, Henderson EuroTrust plc Telephone: [phone]	James de Sausmarez Head of Investment Trusts, Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager, Henderson Global Investors Telephone: [phone]

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

- ENDS -

 

END

 

 

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