Annual Financial Report

RNS Number : 3765Q

Henderson Intl. Income Trust PLC

05 November 2012

 



5 November 2012                                                                                                                

HENDERSON INTERNATIONAL INCOME TRUST PLC

Annual Financial Report for the period ended 31 August 2012

This announcement contains regulated information

FINANCIAL HIGHLIGHTS

	(Audited) 31 August 2012	(Unaudited) 28 April 2011*
Net asset value per Ordinary share	97.2p	98.1p
Ordinary share price	100.5p	100.0p
Premium	3.4%	1.9%
Subscription share price	7.5p	-
Total return per Ordinary share	3.85p	-
Revenue return per Ordinary share	6.08p	-
Capital loss per Ordinary share	(2.23)p	-
Dividend per Ordinary share	5.4p	-

^{*The Ordinary and Subscription shares were listed on the London Stock Exchange on 28 April 2011 following the incorporation of the Company on 2 March 2011.}

DIVIDENDS IN RESPECT OF EARNINGS FOR THE PERIOD TO 31 August 2012
Payment date	Record date	Ex-dividend date	Amount per Ordinary share
31 August 2011	12 August 2011	10 August 2011	0.6p
30 November 2011	11 November 2011	9 November 2011	0.8p
29 February 2012	3 February 2012	1 February 2012	1.0p
31 May 2012	11 May 2012	9 May 2012	1.0p
31 August 2012	3 August 2012	1 August 2012	1.0p
30 November 2012	16 November 2012	14 November 2012	1.0p
			5.4p

PERFORMANCE

	12 months to 31 August 2012		Since launch (28 April 2011) to 31 August 2012
Net asset value per Ordinary share total return (1)	13.35%		4.03%
Ordinary share price total return (1)	12.43%		5.36%
MSCI World ex UK Index (sterling adjusted) (2)	11.63%		0.91%

Source: (1) FundData (2) Datastream

Total return assumes net dividends are reinvested and excludes transaction costs

CHAIRMAN'S STATEMENT

We launched the Company on the London Stock Exchange on 28 April 2011 and now present the results for our first sixteen months trading to 31 August 2012.

Performance and Markets

During the period between launch and 31 August 2012 the return on the Net Asset Value ("NAV") per Ordinary share (on a total return basis) was 4.03% whilst the Company's return on the Ordinary share price (on the same basis) was 5.36%. These compare to a total return of 0.91% in the MSCI World ex UK Index (sterling adjusted). A difficult year globally saw many countries' economic growth slowdown, so it is encouraging to report that the Company performed robustly.

Investors' attitude towards risk has been somewhat cyclical during the sixteen months. A general aversion, based on macro level uncertainties, has been the trend, with investor sentiment driving down the yields of long bonds of safe haven countries such as the US and Germany from over 3% to around 1.5%. But this cautious outlook has been overtaken at times by brief periods of increased optimism and a willingness to take on risk. It is fair to say that, to date, these more optimistic periods have been short lived as the realities of the global picture re-assert themselves. But at the time of writing there is a sense that careful stock selection can and does allow one to invest where the potential in a company's underlying business is not properly reflected in the share price.

During the period under review our Portfolio Manager's judgement about both the state of the optimism cycle and his selection of individual stocks has enabled us to outperform the market.  Within equity markets some of the strongest performers have been higher yielding stocks in defensive areas, including consumer staples, telecoms and the utilities sectors of some markets.

Share Issuances

The Company's Ordinary share price has traded at a premium to NAV per Ordinary share for all but five business days of the entire sixteen month period. The average premium has been 2.6% (against a sector average discount of 5.6%). We finished the period at a 3.4% premium. It is early days, but the Board believes that the Company's share price performance relative to its NAV is a real reflection of the strength of its international (non-UK) investment strategy and evidence of the market's appetite for an investment trust with this orientation.

The Board believes it is in the interests of all Shareholders that the Company widens its investor base and increases it's total size as opportunities arise.  This policy will open up access to our shares to a wider number of investors thereby increasing liquidity, with a consequent expectation of benefits to performance including a proportional reduction in the ongoing charges.

To pursue this policy therefore we have taken advantage of on-going demand from investors to issue a further 4,050,500 new Ordinary shares during the period and a further 527,500 Ordinary shares since the end of the period to 5 November 2012, exhausting the rolling 10% allotment authority as provided for by the UKLA Prospectus Rules (PR1.2.3(2)).

The Company will propose resolutions at the forthcoming Annual General Meeting ("AGM") to renew the Shareholder authorities granted at the 2011 AGM to allow further share issuances. The Company may however, subject to careful consideration of any costs involved, need to issue a Prospectus in due course should demand for new Ordinary shares outweigh the available limit within the Prospectus Rules.

Earnings & Dividends

The Company has fulfilled its dividend target, set out at the launch, while also starting to build a revenue reserve. We generated and will have paid the 5.4p per Ordinary share we proposed originally and will have a retained reserve of 0.5p per Ordinary share to carry forward after the November dividend.

So far five of the six interim dividends have been paid out of earnings to 31 August 2012. The final interim dividend for the period to 31 August 2012 of 1.0p per Ordinary share will be paid on 30 November to Shareholders on the register on 16 November, the ex-dividend date is 14 November.

Gearing

Where the Portfolio Manager believes that gearing will enhance returns to Shareholders, the Company may borrow up to 20% of its net assets at the time of drawdown or investment (as appropriate). Borrowings for these purposes include implied gearing through the use of derivatives.

To date the Company has utilised its overdraft facility to invest in specific stock opportunities on a few occasions. At 31 August 2012 the Company had an overdraft of £160,000 with HSBC.

Fees & Expenses

Your Board has kept a close watch on fees and expenses during the Company's infancy, and will continue to do so. We believe as a result of this we have contracted services on the best available terms for both the period under review and for the future.  The ongoing charge for the Company, as calculated in accordance with the Association of Investment Companies ("AIC") methodology is 1.38% for the year to 31 August 2012.

No performance fee was payable for the period. We do not expect the fees and expenses to significantly increase in the coming year.

Articles of Association

Following a change in legislation, new conditions for a company to be approved as an investment trust came into force for accounting periods commencing on or after 1 January 2012.  There is no longer a requirement for an investment trust company's Articles to contain a prohibition on the distribution of capital profits by way of a dividend or otherwise than by way of repurchase of the Company's shares. In order to align the Company's constitution with the new legislation, a special resolution will therefore be proposed at the forthcoming AGM to amend the Company's Articles of Association. The Board does not intend to utilise the ability to pay distributions from capital unless it is deemed in the best interests of Shareholders and the Company to do so.

Outlook

The Company's portfolio is well positioned to deliver its income objective in the current environment in which we expect slow growth to be the predominant feature. We invest in a diversified mix of companies across geographies and sectors, with an investment process that is flexible enough to react to changing market conditions as they arise. The Board and the Manager would like to take this opportunity to thank investors who have supported the Company at launch and over the last year. We will do our best to continue to meet their needs over the coming years.

Annual General Meeting

The second AGM of the Company will be held at 2:30pm on Wednesday, 12 December 2012 at the Registered Office, 201 Bishopsgate, London EC2M 3AE. The Notice of Meeting and the resolutions to be proposed are set out in a separate document which accompanies this Annual Report. The Directors welcome Shareholders' attendance at the meeting and recommend Shareholders support the resolutions to be proposed. Ben Lofthouse, the Portfolio Manager, will give a presentation to the meeting which will be followed by light refreshments.

Christopher Jonas, CBE

Chairman

5 November 2012

STATEMENT OF DIRECTORS' RESPONSIBILITIES

In accordance with Disclosure and Transparency Rule 4.1.12, the Directors confirm to the best of their knowledge that:

(a) the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and loss of the Company; and

(b) the Directors' Report in the Annual Report includes 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.

For and on behalf of the Board

Christopher Jonas, CBE

Chairman

5 November 2012

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 when in use 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 each month and mitigates risk through diversification of investments in the portfolio.

• Accounting, legal and regulatory

A breach of section 1158 of the Corporation Tax Act 2010 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. The Manager is contracted to provide investment, company secretarial, administration and accounting services through qualified professionals.

The Board receives internal control reports produced by the Manager on a quarterly basis, which confirm regulatory compliance, in addition to monthly investment limits and restrictions schedules and annual reviews.

• Operational disruption

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 the Manager and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal control section of the Corporate Governance Statement within the Annual Report.

By its nature as an investment trust, the Company's business activities are exposed to market risk (including price risk, currency risk and interest rate risk), liquidity risk and credit and counterparty risk. Details of these risks and how they are managed are contained in the notes in the Annual Report.

Related party transactions (transactions with the Manager)

The provision of investment management, accounting, company secretarial and administration services has been outsourced to Henderson Global Investors Limited ('Henderson' or the 'Manager').  This is the only related party arrangement currently in place.  Other than fees payable by the Company in the ordinary course of business, there have been no material transactions with this related party which have affected the financial position or performance of the Company during the period under review.

PORTFOLIO MANAGER'S REVIEW

Review of the period

The Company has two main objectives; to deliver a high and rising level of dividends, and to provide capital appreciation. The income objective has been achieved through delivery of the 5.4p of dividend promised at launch, representing a 4.0% annualised dividend yield on the initial Ordinary share price.

The Company's income was generated by a diverse range of companies across different sectors and geographies. Although equity markets have been volatile the dividend revenue was stable throughout the year and the dividend growth experienced across the portfolio has been robust, and in some cases higher than our forecasts. Whilst some of the traditional income sectors, such as telecoms and pharmaceuticals, continued to generate solid dividend growth as expected, the surprise was the growth from more economically sensitive companies; US building products and DIY chain Home Depot increased its dividend 16.0% year on year, chemicals manufacturer BASF increased by 14.0%, and German stock exchange operator Deutsche Boerse paid an unexpected special dividend.

Operating conditions have been tough for several years now and companies have used their cash flows to improve their financial position, which is giving them confidence to increase pay-outs to Shareholders as earnings improve. In addition to this self-help through cash generation, many companies are taking advantage of low yields and high investor demand to issue corporate bonds at very attractive rates. This financing will benefit equity investors for many years as any measure that improves earnings is positive for dividend paying capability.  Given the strong financial position of the listed corporate sector in general the trend for dividend increases and buybacks is expected to continue.

Delivering a capital return in the current environment has been more challenging, and it is satisfying to see that the Company has weathered the significant market movements since launch relatively well, returning 5.36% compared to the market return of 0.91%. The most significant contributors and detractors to returns consisted of the following positions:

Prinicipal contributors	Sector	*Relative Contribution %
Reynolds American	Consumer Goods	1.30
Telstra	Telecommunications	1.11
Home Depot	Consumer Services	1.02
Dominion Resources	Utilities	0.94
Ambev De Bebidas	Consumer Goods	0.79

Principal detractors	Sector	*Relative Contribution %
Eurocommercial Properties	Property	-0.43
KT Corp.	Telecommunications	-0.52
Allianz	Financials	-0.65
Vivendi	Telecommunications	-0.74
Coretronic	Information Technology	-1.02

*Contribution to the Company's performance relative to the Benchmark

The general environment since the Company's launch has been one of increasing economic uncertainty and concerns regarding the eurozone which made many investors increasingly risk averse and pushed bond yields (with the exception of certain European countries) lower. As expected in this environment a number of the portfolio's strongest performers have been 'safe' yielders, including Australian telecommunications company Telstra and US utility Dominion resources. These companies have rerated due to the fact that their earnings are relatively secure in an uncertain world. Whilst we are not concerned about the companies' businesses or their valuations per se, we have trimmed the holdings and recycled the profits into new positions where there is more potential for earnings growth and hence dividend growth in the future. The consumer staples sector has also performed strongly, supported by the relative defensiveness of its earnings coupled with growth driven by emerging markets. Within the portfolio Reynolds American, Brazilian beer company Ambev De Bebidas and Kraft have been particularly strong contributors in this sector.

Whilst some stocks with high dividend yields are attracting investors' attentions, if the yield is not considered safe then share prices can be very volatile. The biggest single detractor to performance during the period was Taiwanese electronic company Coretronic, which has exciting technology but its take-up has been delayed by the economic slowdown. The position was sold due to concerns regarding its ability to continue to service its dividend. Another holding impacted by a change in its operating environment is media conglomerate Vivendi, which was impacted by the entrance of a disruptive fourth player in the French mobile telecoms market. The position is still held because we see considerable value in the company's businesses, although it may take time for management to execute their strategy to realise this value. In general, European companies have not recovered from the market sell off during the third quarter of 2011 due to the uncertainty regarding the region's commitment to the Euro, and slowing economic growth. The underperformance of stocks such as Allianz and property company Eurocommercial reflect this. These two stocks are examples of European companies  trading at low valuations with attractive dividend yields due to their listing rather than company specific problems and we see good potential for capital appreciation in due course.

Portfolio positioning and activity

The portfolio's largest geographic exposure is to the United States, which makes up 37.0% of the portfolio. There are several factors that make this market attractive. At a company level the pay-out ratio for the market is near an all-time low of around 30.0%, which is driving strong dividend growth in many sectors. At a macroeconomic level, whilst economic growth remains below trend the country is further along the path of recovery in terms of the recapitalisation of its financial sector compared to many European countries, and economic activity in many sectors, in particular housing, is recovering from a very low base. In addition to these factors the advent of new techniques and technologies that have allowed economically viable extraction of shale gas and oil is transforming energy prices for both industry and consumers and will be an exciting development for economic activity in the medium term. The Company's exposure has remained relatively constant throughout the period, but there has been some recycling of profits from utilities and telecoms into financials and industrials since the end of 2011, reflecting the relative valuation differentials between the sectors.

The portfolio maintains a significant weight in European equities, which is concentrated on large capitalisation, global companies, including BASF and ENI, and Northern European domestic companies such as Deutsche Post, and insurer Delta Lloyd. The valuation of European equities is very low compared to

historical measures in terms of price to earnings ratios and dividend yields and, whilst in some cases this is warranted, in many others we believe it will prove to be a buying opportunity.

The balance of the portfolio is spread across a wide range of geographies ranging from Brazil, to China and Indonesia. The geographic allocation in these areas has more to do with stock picking and fundamentals and the outlook for specific companies than an asset allocation decision.

Outlook

Due to the fall in bond yields (both corporate and government) investment options for investors requiring income are even fewer than they were a year ago, except for equity markets which have not experienced this yield compression yet outside certain defensive sectors in some markets. At the same time inflation does not appear to be abating as much as expected, making real returns even harder to acheive. For these reasons the Company is not holding any bonds at this time.

The investment team continues to be excited by the opportunities for income and capital returns from equities even in an environment of slower economic growth; if however economic growth does pick up the returns could be very dramatic. At the time of writing the IMF forecasts global growth to be 3.6% in 2013, which should be enough to drive earnings and dividend growth at a company level.

Ben Lofthouse

Portfolio Manager

5 November 2012

Investment Portfolio

as at 31 August 2012

Sector/Company	Country	£'000	% of Portfolio		Sector/Company	Country	£'000	% of portfolio
BASIC MATERIALS					INDUSTRIALS
BASF	Germany	806	1.8		Amcor	Australia	620	1.4
Israel Chemicals	Israel	528	1.2		CCR	Brazil	736	1.7
		1,334	3.0		Deutsche Post	Germany	950	2.2
CONSUMER GOODS					Emerson Electric	United States	623	1.4
Ambev De Bebidas	Brazil	1,237	2.8		General Electric	United States	913	2.1
Fraser & Neave	Singapore	468	1.1		NWS Holdings	China	782	1.8
Kraft Foods	United States	1,052	2.4		Shanghai Industrial	China	421	0.9
Mattel	United States	664	1.5		Taiwan Cement	Taiwan	478	1.1
Reynolds American	United States	1,596	3.6		United Parcel Services	United States	846	1.9
UMW Holdings	Malaysia	588	1.4				6,369	14.5
		5,605	12.8		OIL & GAS
CONSUMER SERVICES					ENI	Italy	699	1.6
Casino Guichard Perrachon	France	585	1.3		Kinder Morgan	United States	722	1.6
Home Depot	United States	758	1.7		PTT Public Company	Thailand	529	1.2
SES	Luxembourg	558	1.3		Seadrill	Norway	729	1.7
Tabcorp	Australia	574	1.3		Statoil	Norway	853	1.9
Time Warner Cable	United States	671	1.5		Total	France	416	1.0
Time Warner	United States	852	1.9				3,948	9.0
Vivendi	France	990	2.4		PROPERTY
		4,988	11.4		Cheung Kong Holdings	Hong Kong	537	1.2
FINANCIALS					Eurocommercial Properties	Netherlands	638	1.5
Allianz	Germany	1,037	2.4		Link Reit	Hong Kong	757	1.7
Australian & New Zealand Banking	Australia	919	2.1				1,932	4.4
Bank of China	China	389	0.9		TECHNOLOGY
Bank of Montreal	Canada	735	1.7		Digital China Holdings	China	355	0.8
DBS Group	Singapore	408	0.9		Taiwan Semiconductor Manufacturing	Taiwan	763	1.7
Delta Lloyd	Netherlands	479	1.1				1,118	2.5
Deutsche Boerse	Germany	571	1.3		TELECOMMUNICATIONS
New York Community Bancorp	United States	775	1.7		BCE Com	Canada	738	1.7
NYSE Euronext	United States	394	0.9		China Mobile	China	504	1.1
Och-Ziff Capital Management	United States	589	1.3		Deutsche Telekom	Germany	1,050	2.4
PNC Financial Services Group	United States	744	1.7		Philippines Long Distance Telephone	Philippines	578	1.3
Scor Se	France	666	1.5		SK Telecom	South Korea	614	1.4
		7,706	17.5		Telecom Corporation of New Zealand	New Zealand	581	1.3
HEALTH CARE					Telstra	Australia	568	1.3
Abbott Laboratories	United States	1,073	2.5		Verizon Communications	United States	1,297	3.0
Merck & Co	United States	542	1.2				5,930	13.5
Pfizer	United States	1,024	2.3		UTILITIES
Roche	Switzerland	892	2.0		Dominion Resources	United States	925	2.1
		3,531	8.0		Perusahaan Gas Negara	Indonesia	611	1.4
							1,536	3.5
					Total Investments		43,997	100.1
					Derivative financial instruments - options		(62)	(0.1)
					Total		43,935	100.0
The top ten investments are highlighted in bold, these equate to 26.0% of the total portfolio.

INCOME STATEMENT

for the period from incorporation (2 March 2011) to 31 August 2012

	Notes	Revenue return £'000	Capital return £'000	Total £'000
Losses from investments held at fair    value through profit or loss	2	-	(131)	(131)
Income from investments held at fair    value through profit or loss	3	3,339	-	3,339
Losses on foreign exchange		-	(495)	(495)
Option Premium income and interest received		75	-	75
		--------	--------	--------
Gross revenue and capital losses		3,414	(626)	2,788
Management fees		(109)	(327)	(436)
Other administrative expenses		(349)	-	(349)
		--------	--------	--------
Net return/(loss) on ordinary activities    before finance charges and taxation		2,956	(953)	2,003
Finance charges		(1)	(3)	(4)
		--------	--------	--------
Net return/(loss) on ordinary activities    before taxation		2,955	(956)	1,999
Taxation on net return/(loss) on    ordinary activities		(344)	-	(344)
		--------	--------	--------
Net return/(loss) on ordinary activities after    taxation		2,611	(956)	1,655
		=====	=====	=====
Basic and diluted return/(loss) per    Ordinary share	4	6.08p	(2.23)p	3.85p
		=====	=====	=====

The total column of this statement represents the Income Statement of the Company. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All revenue and capital items derive from continuing operations. The Company had no recognised gains or losses other than those disclosed in the Income Statement.

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

for the period from incorporation (2 March 2011) to 31 August 2012

	Called up Share capital £'000	Share premium account £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At the start of the period	-	-	-	-	-
Ordinary shares issued at launch	415	41,002	-	-	41,417
Subscription shares issued at launch	83	-	-	-	83
Issue costs	-	(790)	-	-	(790)
	------	------	------	------	------
	498	40,212	-	-	40,710
Allotment of new Ordinary shares in the period	41	3,820	-	-	3,861
Issue costs	-	(44)	-	-	(44)
Net (loss)/profit for the period	-	-	(956)	2,611	1,655
Dividends paid	-	-	-	(1,914)	(1,914)
	------	------	------	------	------
At 31 August 2012	539	43,988	(956)	697	44,268
	====	====	====	====	====

BALANCE SHEET

at 31 August 2012

	Notes	£'000
Fixed asset investments held at fair value through profit or loss		43,997 --------
Current assets
Debtors		981
Cash at Bank		162
		--------
		1,143
Creditors: amounts falling due within one year		(872)
		--------
Net current assets		271
		--------
Total net assets		44,268
		======
Capital and reserves
Called up share capital	7	539
Share premium account		43,988
Other capital reserves		(956)
Revenue reserve		697
		--------
Total Shareholders' funds		44,268
		======
Net asset value per Ordinary share (basic and diluted)	6	97.2p
		======

CASH FLOW STATEMENT

for the period ended 31 August 2012

	£'000	£'000
Net cash inflow from operating activities		2,234
Servicing of finance
Interest paid	(4) ------
Net cash outflow from servicing of finance		(4)
Financial investment
Purchases of investments	(60,526)
Sales of investments	16,235 ---------
Net cash outflow from financial investment		(44,291)
Equity dividends paid		(1,914) --------
Net cash outflow before financing		(43,975)
Financing
Proceeds from issue of Ordinary shares	45,361
Expenses paid in respect of shares issued	(829) --------
Net cash inflow from financing		44,532 ----------
Increase in cash		557 ======
Reconciliation of net cash flow to movement in net funds
Increase in cash as above		557
Exchange movements		(555) ---------
Net funds at 31 August		2 ======
Represented by: Cash at bank Bank overdraft		162 (160) ---------
		2 ======

NOTES TO THE FINANCIAL STATEMENTS

The Company was incorporated 2 March 2011 and the Ordinary and Subscription shares were listed on the London Stock Exchange on 28 April 2011. The financial statements relate to the period since incorporation to 31 August 2012.

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.

2.	Losses from investment held at fair value through profit or loss	£'000
	Losses on investments sold in the year                                                              Revaluation of investments held at 31 August	(1,341) 1,210 --------- (131) ======
3.	Income from investments held at fair value through profit or loss	£'000
	Overseas dividend income	3,339 ======

4.	Return per Ordinary share
	The total return per Ordinary share is based on the net return attributable to the Ordinary shares of £1,655,000 and on 42,947,148 Ordinary shares being the weighted average number of Ordinary shares in issue during the period. The total return can be further analysed as follows:
		£'000
	Revenue return Capital loss Total return	2,611 (956) --------- 1,655 ======
	Weighted average number of Ordinary shares	42,947,148
	Revenue return per Ordinary share Capital loss per Ordinary share Total return per Ordinary share	6.08p (2.23)p --------- 3.85p ======
	At 31 August 2012 the Subscription shares were not dilutive.

5.	Dividends per Ordinary share
	The total dividends payable in respect of the financial period which form the basis of section 1158 of the Corporation Tax Act 2010 are set below:
		£'000
	Revenue available for distribution by way of dividend for the period Interim dividend of 4.4p paid Interim dividend for the period ended 31 August 2012 of 1.0p (based on 46,077,500 Ordinary shares in issue at 5 November 2012) Undistributed revenue for section 1158 purposes*	2,611 (1,914) (461) --------- 236 ======
	*Undistributed revenue comprises 7.1% of the income from investments of £3,339,000 (see note 3).

6.	Net asset value per Ordinary share
	The net asset value per Ordinary share of 97.2p is based on the net assets attributable to Ordinary shares of £44,268,000 and on 45,550,000 Ordinary shares in issue at 31 August 2012. The Subscription shares were not dilutive at 31 August 2012, therefore, the basic and diluted net asset values are the same. The movements during the period of the assets attributable to the Ordinary shares were as follows:
		£'000
	Total net return on ordinary activities after taxation Dividends paid on Ordinary shares in the year Issue of Ordinary shares less issue costs Total net assets attributable to the Ordinary shares at 31 August	1,655 (1,914) 44,527 --------- 44,268 ======

7.	Called up share capital	Number of shares	Number of shares entitled to dividend	£'000
	Ordinary shares of 1p each
	Issued at the start of the period	41,500,000	41,500,000	415
	Allotment of new shares in the period	4,050,000	4,050,000	41
		---------------	---------------	---------
	At 31 August 2012	45,550,000 =========	45,550,000 =========	456 ======
	Subscription shares of 1p each Issued at the start of the period	8,300,000	-	83
		---------------	---------------	---------
	At 31 August 2012	8,300,000 =========	- =========	83 ======
	The Company was incorporated on 2 March 2011 and was admitted to trading on the London Stock Exchange on 28 April 2011 with an initial capital of £498,000 divided into 41,500,000 Ordinary shares of 1p each and 8,300,000 Subscription shares of 1p each which were all issued and fully paid. During the period 4,050,000 new Ordinary shares were allotted for a total value of £3,861,000 (before expenses). Since the period end a further 527,500 Ordinary shares have been allotted for a total value of £531,000 (before expenses). The Company issued Subscription shares to all subscribers on the basis of one Subscription share for every five Ordinary shares subscribed. Each Subscription share confers the right to subscribe for one Ordinary share on payment of the subscription price of 100p. Notice to exercise the Subscription Rights may be given by Subscription Shareholders during the 30 days prior to the Subscription Date of 31 August 2014 after which the Subscription Rights will lapse.

8.	Going concern
	The Directors believe 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.
9.	2012 Financial Information
	The figures and financial information for the period ended 31 August 2012 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 period ended 31 August 2012 have been audited but have not yet been delivered to the Registrar of Companies. The Auditors' report on the 2012 financial statements was unqualified, did not include a reference to any matter 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.	Annual Report and Financial Statements
	The Report and Financial Statements for the period ended 31 August 2012 will be posted to Shareholders in mid November 2012 and copies will be available on the Company's website www.hendersoninternationalincometrust.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 Wednesday, 12 December 2012 at 2.30pm. The Notice of the Annual General Meeting will be posted to Shareholders with the Annual Report and Financial Statements.

For more information please contact:

Ben Lofthouse Portfolio Manager Henderson International Income Trust plc Telephone: [phone]
James de Sausmarez Director of Investment Trusts Henderson Global Investors Telephone: [phone]	Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

- ENDS -

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.

 

END

 

 

ACSFSAFWIFESESF