Interim Results

RNS Number : 9746D

North Atlantic Smlr Co Inv Tst PLC

22 September 2008

 



North Atlantic Smaller Companies Investment Trust plc

Half Yearly Financial Report

31 July 2008

Objective of the company and financial highlights

The objective of the Company is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean.

		31 July 2008 (unaudited)	31 January 2008 (audited)	% Change
Net asset value per 5p Ordinary Share *
	Basic	1,448 p	1,611 p	(10.1)
	Diluted	1,121 p	1,209 p	(7.3)
Mid-market price of the 5p Ordinary Shares		838.0 p	1,025.0 p	(18.2)
Discount to diluted net asset value *		25.2%	15.2%
Standard & Poor’s 500 Composite Index **		638.8	693.4	(7.7)
Russell 2000 **		360.7	358.8	0.5
FTSE All-Share Index		2,749.2	3,000.1	(8.4)
US Dollar/Sterling exchange rate		1.9809	1.9880	(0.4)

    * Including retained revenue for the period

    **  Sterling adjusted

  Chief executive's review

During the six month period to 31 July 2008, the fully diluted net asset value of the Company fell by 7.3% marginally outperforming the Sterling adjusted Standard and Poor's Composite Index which fell by 7.7%. 

Net income for the period amounted to £264,000 (2007: £972,000). Consistent with long term policy, your directors do not intend to pay a dividend. The Board continued its policy of buying back Convertible Unsecured Loan Stock when the discount is unusually high and some 520,000 units were purchased for cancellation during the six month period.

Listed equities

In the United States, the quoted equity portfolio principally comprised two major holdings: W-H Energy Services Inc. and Sterling Construction Inc. This portfolio performed well following a takeover bid for W-H Energy in July at nearly twice the valuation as at the end of January. 

On the other hand, the United Kingdom listed portfolio, despite the successful takeover of Whatman and a near doubling from cost in Filtronic, was disappointing due to the underperformance of RPC Group, BBA Aviation, Inspired Gaming and Gleeson.

Unlisted equities

The unquoted portfolio benefited from the successful sale of Motherwell Bridge for nearly £20 million, the realisation of the cash in Worldport and a write-up in the valuation of Orthoplastics. Against this, the holding in Jaffer has now been written off and it was necessary to write down the value of the investment in Craegmoor following a disappointing sale price. Hampton Trust was also written down following weakness in the property market. No new private equity investments were made during the period.

Outlook

The current six month period is likely to be very active. Castle Support Services and RPC are conducting strategic reviews. Inspired Gaming, Georgica, Augean and Filtronic have all publicly stated that they are in offer talks. Fayrewood, which is now a cash shell, expects to return money to its shareholders in the near future. Obviously there can be no assurance that the transactions will happen but there is the potential to add very considerably to the Company's net asset value and already substantial cash balances.

The dire forecasts made in the Annual Report for the year ended 31 January 2008, are unfortunately becoming reality. Liquidity within the banking system remains tight and there are few, if any, signs that there will be any improvement over the next few months. The equity market almost certainly has further to fall but opportunities are arising on a selective basis. In fact, of the five new investments made in the UK market since 31 January, four are currently showing profits and the other, a relatively modest loss.

In the circumstances, our policy will be to maximise the value of our holdings, continue to buy back the Convertible Unsecured Loan Stock when it is in the interests of shareholders to do so and lay the foundations so that the Company will fully benefit during the next period of economic growth.

C H B Mills

Chief Executive 

22 September 2008

  Top ten investments

as at 31 July 2008

Company		Fair value	% of
		£'000	net assets
Castle Support Services PLC *	UK Quoted on AIM	23,250	10.8
US Treasury Bills	US Treasury Stock	19,366	9.0
Oryx International Growth Fund Limited *+	UK Listed	16,842	7.9
W-H Energy Services Inc.	USA Quoted	14,274	6.7
Nationwide Accident Repair Services PLC	UK Quoted on AIM	12,000	5.6
Hampton Trust Group	UK Unquoted	10,668	5.0
Inspired Gaming Group PLC	UK Listed	8,469	4.0
Trident Private Equity Fund II LP	Cayman Islands Unquoted	7,418	3.5
BBA Aviation Group PLC	UK Listed	7,395	3.4
Gleeson (MJ) Group PLC	UK Listed	6,456	3.0
		126,138	58.9

* Incorporated in Guernsey

+ Oryx is accounted for in the Group accounts as an Associate under the equity method of accounting. The valuation shown above is the Group's share of Oryx's net assets. 

  Interim management report

Investment objective 

The objective of North Atlantic Smaller Companies Investment Trust PLC ('the Company') is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean.

Material events 

There were no material events to report during the six month period under review.

Material transactions

The Board consider the following transaction that occurred during the half year ended 31 July 2008 to be material: 

In June 2008, the sale of the entire holding in Motherwell Bridge was completed resulting in a profit of £15.6 million.

There were no other material transactions during the period ended 31 July 2008.

Risk profile 

The two main risks arising from the Group's financial instruments are market price risk and foreign currency risk. The Directors review and agree policies with the Joint Manager, North Atlantic Value LLP, for managing these risks. The policies have remained substantially unchanged in the six months since the year end.

The Group does not have any significant exposure to credit risk arising from any one individual party. Credit risk is spread across a number of companies, each having an immaterial effect on the Group's cash flows, should a default happen.

To support its investment in unquoted companies, the Group may periodically agree to guarantee all or part of the borrowings of investee companies. Provision is made for any costs that may be incurred when the Directors consider it like that the guarantee will crystallise.

The Group's exposure to market price risk comprises mainly movements in the value of the Group's investments. It should be noted that the prices of options tend to be more volatile than the prices of the underlying securities. 

The functional and presentational currency of the Group is Sterling, and therefore, the Group's principal exposure to foreign currency risk comprises investments prices in other currencies, principally US Dollars.

The Group invests in equities and other investments that are readily realisable. 

Related party transactions

These are listed in note 9 to the accounts

CULS 

The Convertible Loan Stock 2013 ('CULS') were issued in units of 5p each. The units are redeemable at par on 31 May 2013, unless previously redeemed, purchased by the Company, or converted at the option of the holder. 

During the period ended 31 July 2008, 20,340 (2007: 994,263) units of CULS were converted into Ordinary Shares of 5p each at the rate of one 5p Ordinary Share for every unit of 5p. Also during the period ended 31 July 2008, the Company purchased 520,000 (2007: 200,000) units of CULS for cancellation at a total cost of £4,707,000 (2007: £2,480,000).

The CULS units are convertible into Ordinary Shares of 5p each at a rate of one Ordinary Share for every 5p unit, one month after despatch of the audited accounts in each of the years 2008 to 2013 inclusive.

Interest is payable to holders of the CULS at a rate of 0.5p gross per 5p unit per annum on 31 January each year.

The amount included above is the fair value of the financial liability element of the CULS as of its date of issue, as adjusted for the effective rate of interest, less interest paid to the unit holders, and less the amount of CULS that has been purchased for cancellation or converted into Ordinary Shares. 

C H B Mills 

Chief Executive

22 September 2008

Responsibility statement

 

The Directors confirm to the best of their knowledge that:

 

·         the condensed set of financial statements contained within the half yearly financial report have been prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’; and

 

·         the half yearly financial report includes a fair review of the information required by 4.2.7R and 4.2.8R of the FSA’s Disclosure and Transparency Rules.

 

The half yearly financial report was approved by the Board on 22 September2008 and the above responsibility statement was signed on its behalf by

 

C H B Mills

Chief Executive

 Consolidated income statement

	Six months ended				Six months ended
	31 July				31 July
	2008				2007
	(unaudited)				(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
		£’000	£’000	£’000	£’000	£’000	£’000
investments
(Losses)/gains on investments		-	(17,117)	(17,117)	-	21,600	21,600
Exchange differences		-	(207)	(207)	-	(442)	(442)
net investment result		-	(17,324)	(17,324)	-	21,158	21,158
income		2,200	-	2,200	3,091	-	3,091
expenses
Investment management fee		(1,238)	(11)	(1,249)	(1,265)	(663)	(1,928)
Other expenses		(351)	-	(351)	(644)	-	(644)
Share based remuneration		(90)	-	(90)	(127)	-	(127)
Interest payable and similar charges		(257)	-	(257)	(83)	-	(83)
total expenses		(1,936)	(11)	(1,947)	(2,119)	(663)	(2,782)
share of net return of associate		-	(2,063)	(2,063)	-	71	71
profit before taxation		264	(19,398)	(19,134)	972	20,566	21,538
Taxation		-	-	-	-	-	-
transfer to reserves		264	(19,398)	(19,134)	972	20,566	21,538
attributable to:
Equity holders of the parent		264	(19,398)	(19,134)	1,123	20,245	21,368
Minority interest		-	-	-	(151)	321	170
		264	(19,398)	(19,134)	972	20,566	21,538
return per ordinary share (note 4):
Basic				(129.46)p			153.52p
Diluted				(98.27)p			107.85p

The total column of this statement represents the Group's income statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies (''AIC'').

All items in the above statement derive from continuing operations.

  Consolidated income statement (continued)

Year ended
31 January
2008
(audited)
Revenue	Capital	Total
£’000	£’000	£’000
			investments
-	3,300	3,300	Gains on investments
-	(540)	(540)	Exchange differences
-	2,760	2,760	net investment result
5,208	-	5,208	income
			expenses
(2,512)	(1,237)	(3,749)	Investment management fee
(954)	-	(954)	Other expenses
(255)	-	(255)	Share based remuneration
(366)	-	(366)	Interest payable and similar charges
(4,087)	(1,237)	(5,324)	total expenses
-	(4,223)	(4,223)	share of net return of associate
1,121	(2,700)	(1,579)	profit before taxation
-	-	-	Taxation
1,121	(2,700)	(1,579)	transfer to reserves
			attributable to:
1,272	(3,021)	(1,749)	Equity holders of the parent
(151)	321	170	Minority interest
1,121	(2,700)	(1,579)
			return per ordinary share (note 4):
		(12.19)p	Basic
		(8.73)p	Diluted

The total column of this statement represents the Group's income statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies (''AIC'').

All items in the above statement derive from continuing operations.

  Consolidated statement of changes in equity

	Share capital	CULS reserve	Share options reserve	Share premium account	Capital reserve - realised
	£'000	£'000	£'000	£'000	£'000
Six months ended 31 July 2008 (unaudited)
31 January 2008	739	34	1,341	629	180,033
Total recognised income and expenses for the period	-	-	-	-	13,258
Premium paid on repurchase of CULS	-	(4)	-	-	(4,680)
Share Option expense	-	-	90	-	-
Arising on conversion of CULS	1	-	-	-	-
31 July 2008	740	30	1,431	629	188,611
Year ended 31 January 2008 (audited)
31 January 2007	689	43	1,086	629	183,887
Total recognised income and expenses for the period	-	-	-	-	4,802
Premium paid on repurchase of CULS	-	-	-	-	(2,475)
Share Option expense	-	-	255	-	-
Arising on deconsolidation of AOT	-	-	-	-	(6,181)
Arising on conversion of CULS	50	(9)	-	-	-
31 January 2008	739	34	1,341	629	180,033
Six months ended 31 July 2007 (unaudited)
31 January 2007	689	43	1,086	629	183,887
Total recognised income and expenses for the period	-	-	-	-	(2,741)
Share Option expense	-	-	127	-	-
Arising on deconsolidation of AOT	-	-	-	-	(6,181)
Arising on conversion of CULS	50	(9)	-	-	-
Premium paid on repurchase of CULS	-	-	-	-	(2,475)
31 July 2007	739	34	1,213	629	172,490

  Consolidated statement of changes in equity (continued)

Capital reserve- unrealised	Revenue reserve	Total	Minority interest	Total
£'000	£'000	£'000	£'000	£'000
					Six months ended 31 July 2008 (unaudited)
58,128	(2,930)	237,974	-	237,974	31 January 2008
(32,656)	264	(19,134)	-	(19,134)	Total recognised income and expenses for the period
-	-	(4,684)	-	(4,684)	Premium paid on repurchase of CULS
-	-	90	-	90	Share Option expense
-	-	1	-	1	Arising on conversion of CULS
25,472	(2,666)	214,247	-	214,247	31 July 2008
					Year ended 31 January 2008 (audited)
60,476	(4,908)	241,902	7,740	249,642	31 January 2007
(7,823)	1,272	(1,749)	170	(1,579)	Total recognised income and expenses for the period
-	-	(2,475)	-	(2,475)	Premium paid on repurchase of CULS
-	-	255	-	255	Share Option expense
5,475	706	-	(7,910)	(7,910)	Arising on deconsolidation of AOT
-	-	41	-	41	Arising on conversion of CULS
58,128	(2,930)	237,974	-	237,974	31 January 2008
					Six months ended 31 July 2007 (unaudited)
60,476	(4,908)	241,902	7,740	249,642	31 January 2007
22,986	1,123	21,368	170	21,538	Total recognised income and expenses for the period
-	-	127	-	127	Share Option expense
5,475	706	-	(7,910)	(7,910)	Arising on deconsolidation of AOT
-	-	41	-	41	Arising on conversion of CULS
-	-	(2,475)	-	(2,475)	Premium paid on repurchase of CULS
88,937	(3,079)	260,963	-	260,963	31 July 2007

  Consolidated balance sheet

	31 July  2008 (unaudited)	31 January 2008 (audited)	31 July  2007 (unaudited)
	£'000	£'000	£'000
Non current assets
Investments at fair value through profit or loss	188,574	231,820	227,489
Investments accounted for using the equity method	16,842	18,928	24,077
	205,416	250,748	251,566
Current assets
Investments held for trading in Subsidiary Companies	1	308	705
Trade and other receivables	4,386	4,169	3,823
Cash and cash equivalents	13,533	8,504	13,054
	17,920	12,981	17,582
Total assets	223,336	263,729	269,148
Current liabilities
Bank loans and overdrafts	(7,285)	(9,356)	(6,495)
Investments held for trading- -derivatives	(122)	(612)	(217)
Trade and other payables	(1,513)	(15,595)	(1,281)
	(8,920)	(25,563)	(7,993)
Total assets less current liabilities	214,416	238,166	261,155
Non current liabilities
CULS	(169)	(192)	(192)
	(169)	(192)	(192)
Total liabilities	(9,089)	(25,755)	(8,185)
Net assets	214,247	237,974	260,963

  Consolidated balance sheet (continued)

	31 July  2008 (unaudited)	31 January 2008 (audited)	31 July  2007 (unaudited)
	£'000	£'000	£'000
Represented by:
Share capital	740	739	739
Equity component of CULS	30	34	34
Share options reserve	1,431	1,341	1,213
Share premium account	629	629	629
Capital reserve - realised	188,611	180,033	172,490
Capital reserve - unrealised	25,472	58,128	88,937
Revenue reserve	(2,666)	(2,930)	(3,079)
Equity attributable to equity holders    of the parent	214,247	237,974	260,963
Minority interest	-	-	-
Total equity	214,247	237,974	260,963
Net asset value per ordinary share (note 5):
Basic	1,448p	1,611p	1,766p
Diluted	1,121p	1,209p	1,322p

  Consolidated cash flow statement

	Six months ended 31 July  2008 (unaudited)	Six months ended 31July  2007 (unaudited)	Year ended 31 January  2008 (audited)
	£'000	£'000	£'000
Cash flows from operating activities
Investment income received	1,892	2,438	4,147
Bank deposit interest received	161	380	690
Other income	78	18	78
Sale of investments by dealing Subsidiary	-	(249)	(220)
Investment management fees paid	(2,486)	(2,501)	(3,772)
Other cash payments	(378)	(305)	(705)
Cash expended from operations	(733)	(219)	(218)
Bank interest paid	(280)	(39)	(282)
CULS interest paid	-	-	(23)
Net cash outflow from operating activities	(1,013)	(258)	(87)
Cash flows from investing activities
Purchases of investments	(85,219)	(85,702)	(171,086)
Sales of investments	97,803	89,036	167,098
Net cash inflow/(outflow) from investing activities	12,584	3,334	(3,988)
Cash flows from financing activities
Repayment of fixed term borrowings	(3,506)	(364)	(554)
Increase in fixed term borrowings	1,108	4,713	7,113
Repurchase of CULS for cancellation	(3,995)	(2,485)	(2,485)
Net cash inflow/(outflow) from financing activities	(6,393)	1,864	4,074
Increase/(decrease) in cash and cash equivalents for the period	5,178	4,940	(1)
Cash and cash equivalents at the start of the period	8,504	9,497	9,497
Arising on deconsolidation of AOT	-	(1,091)	(1,091)
Revaluation of foreign currency balances	(149)	(292)	99
Cash and cash equivalents at the end of   the period	13,533	13,054	8,504

  Notes 

1. Basis of preparation

North Atlantic Smaller Companies Investment Trust PLC (''NASCIT'') is a Company incorporated and registered in England and Wales under the Companies Acts 1948 to 1967.

The condensed consolidated interim financial information for the six months ended 31 July 2008 has been prepared in accordance with IAS 34 'Interim Financial Reporting'. They do not include all financial information required for full annual financial statements. They have been prepared using accounting policies adopted in the audited financial for the year ended 31 January 2008. Those financial statements were prepared in accordance with International Financial Reporting Standards. 

The condensed consolidated interim financial information consolidate the financial statements of the Company and its wholly owned Subsidiary, Consolidated Venture Finance Limited, for the six months ended 31 July 2008.

2. Performance fees

A Performance Fee is only payable if the investment portfolio outperforms the Sterling adjusted Standard & Poor's 500 Composite Index at the end of each financial year and is limited to a maximum of 0.5% of Shareholders' Funds.

In accordance with the Statement of Recommended Practice (''SORP'') for investment trust companies, an amount is included in these financial statements for the Performance Fee that could be payable based on investment performance to 31 July 2008.

At that date a Performance fee of £11,000, including irrecoverable VAT, has been accrued for in the accounts (31 July 2007: £663,000 including irrecoverable VAT; 31 January 2008: £1,237,000 including irrecoverable VAT) and is allocated 100% to capital.

3. Taxation 

The Company has an effective tax rate of 0%. The estimated effective tax rate is 0% as investment gains are exempt from tax owing to the Company's status as an Investment Trust and there is expected to be an excess of management expenses over taxable income and thus there is no charge for corporation tax.

  Notes (continued)

4.Return per ordinary share

	Revenue				Capital
		*Net return	Ordinary	Per Share	*Net return	Ordinary	Per Share
		£'000	Shares	pence	£'000	Shares	pence
Six months ended 31 July 2008 (unaudited)
Basic return per Share		264	14,779,454	1.79	(19,398)	14,779,454	(131.25)
Options conversion**		-	268,431		-	268,431
CULS***		22	4,401,141		-	4,401,141
Diluted return per Share		286	19,449,026	1.47	(19,398)	19,449,026	(99.74)
Six months ended 31 July 2007 (unaudited)
Basic return per Share		1,123	13,918,275	8.07	20,245	13,918,275	145.46
Options conversion**		-	390,770		-	390,770
CULS***		27	5,529,579		-	5,529,579
Diluted return per Share		1,150	19,838,624	5.80	20,245	19,838,624	102.05
Year ended 31 January 2008  (audited)
Basic return per Share		1,272	14,350,263	8.86	(3,021)	14,350,263	(21.05)
Options conversion**		-	377,878		-	377,878
CULS***		25	5,019,049		-	5,019,049
Diluted return per Share		1,297	19,747,190	6.57	(3,021)	19,747,190	(15.30)

Basic return per Ordinary Share has been calculated using the weighted average number of Ordinary Shares in issue during the period.

 

*           Net return on ordinary activities attributable to Ordinary Shareholders.

 

**          Excess of the total number of potential Shares on option conversion over the number that could be issued at average market price, as calculated in accordance with IAS 33: Earnings per Share.

 

***        CULS assumed converted as average share price during the period was greater than the conversion price.

Notes (continued)

4.return per ordinary share (continued)

Total
*Net return	Ordinary	Per Share
£'000	Shares	pence
			six months ended 31 July 2008  (unaudited)
(19,134)	14,779,454	(129.46)	Basic return per Share
-	268,431		Options conversion**
22	4,401,141		CULS***
(19,112)	19,449,026	(98.27)	Diluted return per Share
			six months ended 31 July 2007  (unaudited)
21,368	13,918,275	153.53	Basic return per Share
-	390,770		Options conversion**
27	5,529,579		CULS***
21,395	19,838,624	107.85	Diluted return per Share
			year ended 31 January 2008  (audited)
(1,749)	14,350,263	(12.19)	Basic return per Share
-	377,878		Options conversion**
25	5,019,049		CULS***
(1,724)	19,747,190	(8.73)	Diluted return per Share

Basic return per Ordinary Share has been calculated using the weighted average number of Ordinary Shares in issue during the period.

 

*           Net return on ordinary activities attributable to Ordinary Shareholders.

 

**          Excess of the total number of potential Shares on option conversion over the number that could be issued at average market price, as calculated in accordance with IAS 33: Earnings per Share.

 

***        CULS assumed converted as average share price during the period was greater than the conversion price.

Notes (continued)

 

5. net asset value per ordinary share

The basic net asset value per Ordinary Share is based on net assets of £214,247,000(31 January 2008: £237,974,000; 31 July 2007: £260,963,000) and on 14,795,548 Ordinary Shares (31 January 2008: 14,775,208; 31 July 2007: 14,775,208) being the number of Ordinary Shares in issue at the period end.

 

The diluted net asset value per Ordinary Share is calculated on the assumption that the outstanding 2013 CULS are fully converted at par and that all 1,030,000 (31 January 2008: 1,030,000; 31 July 2007: 1,030,000) Share Options were exercised at the prevailing exercise prices, giving a total of 19,802,052 issued Ordinary Shares (31 January 2008: 20,322,052; 31 July 2007: 20,322,052).

6. debenture loan - convertible unsecured loan stock ('CULS') 2013

On 18 April 2008 50,000 CULS units were purchased for cancellation at a rate of 1,000p per unit.

On 16 June 2008 250,000 CULS units were purchased for cancellation at a rate of 910p per unit.

On 27 June 2008 100,000 CULS units were purchased for cancellation at a rate of 915p per unit.

On 21 July 2008 35,000 CULS units were purchased for cancellation at a rate of 850p per unit.

On 30 July 2008 85,000 CULS units were purchased for cancellation at a rate of 835p per unit.

On 23 June 2008 20,340 CULS units were converted into 20,340 Ordinary Shares of 5p each at the rate of one 5p Ordinary Share for every unit of 5p.

At 31 July 2008 3,976,504 CULS units were remaining.

7. bank loans

The Company's multi-currency loan Revolving Credit Facility of up to £9 million was due to expire on 31 July 2008. During the period the Company negotiated an extension on this facility to 31 July 2009. 

During the period the Company repaid its £2,400,000 loan, and drew down and repaid €1,400,000. The Company currently has 8 million Euros and 2 million Canadian Dollars drawn down which are due for repayment on 25 September 2008. 

8. Reconciliation of total return from ordinary activities before finance costs and taxation to cash expended from operations

	Six months  ended 31 July 2008 (unaudited)	Six months  ended 31 July 2007 (unaudited)	Year ended 31 January 2008 (audited)
	£'000	£'000	£'000
Total return from ordinary activities before finance costs and taxation	(18,877)	21,621	(1,213)
Gains on investments	17,324	(21,158)	(2,760)
Share based remuneration	90	127	255
Share of net return of associate	2,063	(71)	4,223
Dividends and interest reinvested	(433)	(338)	(705)
Decrease in debtors and accrued income	206	118	70
Changes relating to investments of dealing Subsidiaries	305	(303)	(15)
(Decrease)/increase in creditors and accruals	(1,411)	(215)	363
Tax on investment income	-	-	-
cash expended from operations	(733)	(219)	218

9. Related party transactions 

The Joint Manager, North Atlantic Value LLP, is regarded as a related party of the Company. The amounts payable to the Joint Manager and Growth Financial Services Limited ('GFS') in respect of investment management for the six months to 31 July 2008 are as follows:

	Six months  ended 31 July 2008 (unaudited)	Six months  ended 31 July 2007 (unaudited)	Year ended 31 January 2008 (audited)
	£'000	£'000	£'000
Annual fee	1,238	1,233	2,454
Performance fee	10	646	1,197
Irrecoverable VAT thereon	1	49	98
	1,249	1,928	3,749

In addition to the management fees disclosed above, North Atlantic Value LLP is also paid:

 

-          an activity fee of £225 per transaction as reimbursement of custodian and related transaction costs incurred on the Company’s behalf.

-          an investment management related fee of £100,000 per annum.

10. Financial information 

The financial information contained in this Half Yearly Report does not constitute full Statutory accounts as defined in Section 240 of the Companies Act 1985. The financial information for the periods ended 31 July 2008 and 31 July 2007 is not a financial year and has not been audited. The statutory accounts for the financial year ended 31 January 2008 have been delivered to the Registrar of Companies and received an Audit Report which was unqualified, did not included a reference to any matters to which the Auditors drew attention by way of emphasis without qualifying the Report and did not contain statements under Section 237(2) and (3) of the Companies Act 1985.

Shareholder information

 

Financial calendar      Preliminary results                     May

                                    Annual Report                            May

                                    Annual General Meeting             June

                                    Half Yearly figures announced     September

                                    Half Yearly Report posted           September

 

Share price                  The Company’s mid-market share price and CULS price are quoted daily in the Financial Times appearing under ‘’Investment Companies’’.

 

                                    They also appear on:

 

                                    Reuters:                                    Convertible Loan Stock NASp.L

                                    Bloomberg                                 NAS.LN

                                    SEAQ Ordinary Shares:              NAS

                                    Trustnet:                                    www.trustnet.ltd.uk

 

Net asset value            The latest net asset value for the Company can be found on the North Atlantic Value LLP website: www.navalue.co.uk

 

Share dealing              Investors wishing to purchase more Ordinary Shares or dispose of all or part of their holding may do so through a stockbroker. Many banks also offer this service.

 

                                    The Company’s registrars are Capita Registrars. In the event of any queries regarding your holding of shares, please contact the registrars on: 0870 458 4577, or by email on [e-mail]

 

                                    Changes of name or address must be notified to the registrars in writing at:

 

                                                            Capita Registrars

                                                            The Registry

                                                            34 Beckenham Road

                                                            Beckenham

                                                            Kent BR3 4TU

Shareholder information (continued)

 

                                    Directors

                                    E F Gittes (Chairman)

                                    C H B Mills (Chief Executive)

                                    K Siem

                                    C L A Irby

                                    O R Grace

                                    P E Swinstead

 

                                    Joint Manager

                                    North Atlantic Value LLP

                                    (Authorised and regulated by the Financial Services Authority)

                                    Ground Floor

                                    Ryder Court

                                    14 Ryder Street

                                    London SW1Y 6QB

                                    Telephone: [phone]

 

                                    Company Secretary and Registered Office

                                    J O Hambro Capital Management Limited

                                    Ground Floor

                                    Ryder Court

                                    14 Ryder Street

                                    London SW1Y 6QB

                                    Telephone: [phone]

 

                                    Registrars

                                    Capita Registrars

                                    The Registry

                                    34 Beckenham Road

                                    Beckenham

                                    Kent BR3 4TU

 

                                    Auditors

                                    Grant Thornton UK LLP

                                    30 Finsbury Square

                                    London EC2P 2YU

 

                                    Bankers

                                    Allied Irish Bank, p.l.c.

                                    St Helen’s

                                    1 Undershaft

                                    London EC3A 8AB

 

END

 

 

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