Half-Yearly Results, Dividend and Directorate

RNS Number : 8395L

RIT Capital Partners PLC

16 August 2013

 



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16 August 2013

RIT Capital Partners plc

Results for the six months ending 30 June 2013 and Net Asset Value Update

RIT Capital Partners plc today publishes an update of its net asset value, together with results for the six months ending 30 June 2013.

Net Asset Value/ Performance Update to 31 July 2013

·     Net asset value per share (NAV) at 31 July 2013 of 1,378 pence

·     NAV total return of 16.9% since the start of the year

·     Growth in net assets of £290m from the start of the year to £2,137m at 31 July 2013

·     Share price increased by 10.3% over that period.  Taking account of the April dividend this represents a total return of 11.5%

Performance Highlights for the six months ending 30 June 2013

·     Quoted equity book outperformed markets, as a result of successful stock picking with a focus on US cyclicality and Japan

·     Participation rate in excess of 80% of equity markets, with a considerably lower net equity exposure

·     NAV of 1,342 pence at 30 June 2013 (total return of 13.8% since December 2012)

·     Successful reading of foreign exchange markets contributed to gains

Dividends

·     Dividend paid in April 2013 of 14 pence per share

·     A further dividend of 14 pence per share will be paid in October 2013

Commenting, Lord Rothschild, Chairman of RIT Capital Partners plc, said;

"Our quoted equity book has outperformed markets while our reading of foreign exchange markets has contributed to our profits ... we have been consolidating our investments in third party managed funds and have increased our holdings in individual stocks where we have conviction. We have reduced holdings in emerging markets and have increased positions in the improving US economy.

As recovery still relies so heavily on central bank creation of money, the search for quality has been our main focus. We continue, even so, to research and identify companies and special situations that would benefit from the much-needed transition from growth created by printing money to one of more sustained growth ..."  

ENQUIRIES:

Brunswick Group LLP:

Tom Burns / Sophie Brand 020 7404 5959

About RIT Capital Partners plc:

RIT Capital Partners plc is an investment company listed on the London Stock Exchange. Its net assets exceeded £2 billion this year for the first time in the Company's history.  It is chaired by Lord Rothschild, whose family interests retain a significant holding. www.ritcap.com

THE FOLLOWING IS EXTRACTED FROM THE COMPANY'S HALF-YEARLY FINANCIAL REPORT

FINANCIAL SUMMARY

	30 June 2013	31 December 2012
Net assets	£2,081m	£1,847m
Market capitalisation	£1,802m	£1,757m
Shares outstanding	155.4m	155.4m
NAV per share1	1,342p	1,191p
Share price	1,160p	1,131p
Discount	-13.6%	-5.1%
Dividend paid per share	14p	28p
Gearing	net cash	net cash

¹ Unless otherwise stated NAV per share is diluted NAV per share taking into account the effect of Share Appreciation Rights and shares held in the Employee Benefit Trust.

PERFORMANCE

Percentage Changes to Date
	6 Months	1 Year		5 Years		10 Years
NAV per share Total Return	13.8	15.5		29.7		203.4
MSCI World (£) Total Return	16.0	22.5		49.8		119.1
FTSE All-Share Total Return	8.5	17.9		38.2		136.4
Share Price Total Return	3.8	-5.6		11.0		191.0
NAV per share	12.6	14.3		23.1		183.4
MSCI World (£)	14.6	19.8		34.0		79.1
FTSE All-Share	6.3	13.8		15.2		66.9
Share price	2.6	-6.7		5.2		171.3

CHAIRMAN'S STATEMENT

Your Company's net asset value at the end of June was 1,342 pence per share, which represents a total return, including the 14 pence interim dividend, of 13.8% for the half year. By the end of July your Company's NAV had risen further to 1,378 pence per share, a 16.9% return for the year to date.

Markets have moved upwards during this period and the contribution to RIT's satisfactory performance is shown in the table below.

Our quoted equity book has outperformed markets while our reading of foreign exchange markets has contributed to our profits. Recognising that US authorities would face difficulties in suppressing bond yields in the face of an improving economy, we held short positions in government bonds during the period.

Around a quarter of our assets are held in unquoted private investments. The value of such investments tends to rise in longer cycles than public markets. A further 7%, net of borrowings, is held in cash and near cash. We reduced our gold position as the price of gold corrected following the profitable defensive performance of recent years.

We have been consolidating our investments in third party managed funds by reducing the number of funds held and have increased our holdings in individual stocks where we have conviction. We have reduced holdings in emerging markets and have increased positions in the improving US economy, which I highlighted in March. At the end of June, 47% of our net assets were in the US, while our currency exposure there amounted to 80%. Sterling exposure has increased from 16% to 31% in the period under review. In Japan we hedged our exposure to underlying currency and profited as well from Japan's bold economic strategy by increasing our holdings in Japanese equities.

Our relationships with Corsair Capital, the Edmond de Rothschild Group and Rockefeller & Co are leading to interesting private and public equity opportunities. These relationships are designed for the long term, and will help to put RIT on an investment course which should allow it to prosper in the years ahead.

As recovery still relies so heavily on central bank creation of money, the search for quality has been our main focus. We continue, even so, to research and identify companies and special situations that would benefit from the much-needed transition from growth created by printing money to one of more sustained growth in the world's real economies.

Rothschild

15 August 2013

CONTRIBUTION TO TOTAL RETURN, 6 MONTHS TO JUNE 2013

	June 2013 % Net Assets	Contribution to Total Return %
Quoted Equity - Internally Managed	15	4.9
Quoted Equity - Externally Managed	46	7.3
Unquoted Investments - Direct	11	1.1
Unquoted Investments - Funds	14	1.5
Real Assets	4	-2.4
Absolute Return & Credit, Government Bonds and Currency	3	1.9
Net Liquidity, Borrowings and Other1	7	-0.5
Total	100	13.8

¹ Includes translation gains, other income, expenses, interest and tax.

Net Asset VALUE BY ASSET CATEGORY (%)

	30 June 2013 % Net Assets	31 December 2012 % Net Assets
Quoted Equity - Internally Managed	15	19
Quoted Equity - Externally Managed	46	44
Unquoted Investments - Direct	11	11
Unquoted Investments - Funds	14	15
Real Assets	4	5
Absolute Return & Credit, Government Bonds and Currency	3	3
Net Liquidity/ Borrowings/ Other	7	3
Total	100	100

Net Asset VALUE by Currency (%)

	30 June 2013  % Net Assets	31 December 2012 % Net Assets
US Dollar	80	62
Sterling	31	16
Mexican Peso	3	4
Norwegian Krone	0	8
Canadian Dollar	-2	6
Euro	-6	2
Japanese Yen	-6	-4
Other	0	6
Total	100	100

Net Asset VALUE by Geography (%)

	30 June 2013  % Net Assets	31 December 2012 % Net Assets
North America	47	48
United Kingdom	15	17
Emerging Markets	14	15
Europe	11	12
Japan	8	8
Global/Other	3	4
Liquidity, Borrowings, Currency	10	6
Total	108	110

Note: This table includes market exposure resulting from index futures.

Consolidated Income Statement (unaudited)

For the six months ended 30 June 2013	Notes	Revenue return £ million	Capital return £ million	Total £ million
Income
Investment income		11.5	-	11.5
Other income		2.9	-	2.9
Gains/(losses) on dealing investments held at fair value		-	-	-
Total income		14.4	-	14.4
Gains/(losses) on portfolio investments held at fair value		-	257.2	257.2
Exchange gains/(losses) on monetary items and borrowings		-	(0.7)	(0.7)
		14.4	256.5	270.9
Expenses
Administrative expenses		(10.9)	(1.0)	(11.9)
Investment management fees		(1.7)	(0.7)	(2.4)
Profit/(loss) before finance costs and tax		1.8	254.8	256.6
Finance costs		(2.5)	-	(2.5)
Profit/(loss) before tax		(0.7)	254.8	254.1
Taxation		(0.7)	(0.4)	(1.1)
Profit/(loss) for the period	2	(1.4)	254.4	253.0
Earnings per ordinary share - basic	2	(0.9p)	164.2p	163.3p
Earnings per ordinary share - diluted	2	(0.9p)	164.1p	163.2p

The total column of this statement represents the Group's Consolidated Income Statement, prepared in accordance with International Financial Reporting Standards (IFRS). The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations. The notes are an integral part of these condensed interim financial statements.

Consolidated Statement of Comprehensive Income (unaudited)

For the six months ended 30 June 2013	Revenue return £ million	Capital return £ million	Total £ million
Profit/(loss) for the period	(1.4)	254.4	253.0
Other comprehensive income/(expense) Actuarial gain/(loss) in defined benefit pension plan	1.5	-	1.5
Total comprehensive income/(expense) for the period	0.1	254.4	254.5

Consolidated Income Statement (unaudited)

For the six months ended 30 June 2012	Notes	Revenue  return  £ million	Capital return £ million	Total £ million
Income
Investment income		10.3	-	10.3
Other income		1.5	-	1.5
Gains/(losses) on dealing investments held at fair value		(9.3)	-	(9.3)
Total income		2.5	-	2.5
Gains/(losses) on portfolio investments held at fair value		-	76.9	76.9
Exchange gains/(losses) on monetary items and borrowings		-	3.2	3.2
		2.5	80.1	82.6
Expenses
Administrative expenses		(10.5)	(1.0)	(11.5)
Investment management fees		(1.7)	(0.8)	(2.5)
Profit/(loss) before finance costs and tax		(9.7)	78.3	68.6
Finance costs		(4.3)	-	(4.3)
Profit/(loss) before tax		(14.0)	78.3	64.3
Taxation		0.9	-	0.9
Profit/(loss) for the period	2	(13.1)	78.3	65.2
Earnings per ordinary share - basic	2	(8.5p)	51.0p	42.5p
Earnings per ordinary share - diluted	2	(8.5p)	50.9p	42.4p

The total column of this statement represents the Group's Consolidated 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. All items in the above statement derive from continuing operations. The notes are an integral part of these condensed interim financial statements.

Consolidated Statement of Comprehensive Income (unaudited)

For the six months ended 30 June 2012	Revenue return £ million	Capital return £ million	Total £ million
Profit/(loss) for the period	(13.1)	78.3	65.2
Other comprehensive income/(expense)
Actuarial gain/(loss) in defined benefit pension plan	(0.4)	-	(0.4)
Total comprehensive income/(expense) for the period	(13.5)	78.3	64.8

Consolidated Balance Sheet

	Notes	30 June 2013 (unaudited) £ million	31 December 2012  (audited) £ million
Non-current assets
Investments held at fair value		1,974.0	1,801.4
Investment property		49.0	46.1
Property, plant and equipment		0.3	0.2
Deferred tax asset		1.9	2.7
		2,025.2	1,850.4
Current assets
Derivative financial instruments		36.6	25.0
Sales for future settlement		20.5	66.9
Other receivables		39.2	25.6
Tax receivable		0.5	0.5
Cash at bank		106.3	66.4
		203.1	184.4
Total assets		2,228.3	2,034.8
Current liabilities
Bank loans and overdrafts		(105.4)	(147.8)
Purchases for future settlement		(4.8)	(4.5)
Derivative financial instruments		(26.3)	(20.2)
Provisions		(0.8)	(1.2)
Tax payable		(0.1)	(0.2)
Other payables		(5.2)	(5.9)
		(142.6)	(179.8)
Net current assets/(liabilities)		60.5	4.6
Total assets less current liabilities		2,085.7	1,855.0
Non-current liabilities
Provisions		(4.4)	(5.4)
Finance lease liability		(0.5)	(0.5)
Retirement benefit liability		-	(1.9)
		(4.9)	(7.8)
Net assets		2,080.8	1,847.2
Equity attributable to equity holders
Share capital		155.4	155.4
Share premium		17.3	17.3
Capital redemption reserve		36.3	36.3
Own shares reserve		(5.5)	(6.4)
Share based payment reserve		4.6	4.7
Foreign currency translation reserve		0.2	0.2
Capital reserve		1,842.1	1,609.4
Revenue reserve		30.4	30.3
Total shareholders' equity		2,080.8	1,847.2
Net asset value per ordinary share - basic	3	1,342.5p	1,192.4p
Net asset value per ordinary share - diluted	3	1,341.6p	1,191.4p

Consolidated Statement of Changes in Equity (unaudited)

Period ended 30 June 2013	Share capital £ million	Share   premium £ million	Capital redemption reserve £ million	Own shares reserve £ million	Share based payment reserve £ million	Foreign  currency translation reserve £ million	Capital reserve £ million	Revenue reserve £ million	Total equity £ million
Balance at 1 January 2013	155.4	17.3	36.3	(6.4)	4.7	0.2	1,609.4	30.3	1,847.2
Profit/(loss) for the period	-	-	-	-	-	-	254.4	(1.4)	253.0
Actuarial gain/(loss) in defined benefit pension plan	-	-	-	-	-	-	-	1.5	1.5
Total Comprehensive income/(expense) for the period	-	-	-	-	-	-	254.4	0.1	254.5
Dividends paid (note 4)	-	-	-	-	-	-	(21.7)	-	(21.7)
Movement in Own shares reserve	-	-	-	0.9	-	-	-	-	0.9
Movement in Share based payment reserve	-	-	-	-	(0.1)	-	-	-	(0.1)
Balance at 30 June 2013	155.4	17.3	36.3	(5.5)	4.6	0.2	1,842.1	30.4	2,080.8
Period ended 30 June 2012	Share capital £ million	Share premium £ million	Capital redemption reserve £ million	Own shares reserve £ million	Share based payment reserve £ million	Foreign currency translation reserve £ million	Capital reserve £ million	Revenue reserve £ million	Total equity £ million
Balance at 1 January 2012	153.9	-	36.3	(5.9)	5.2	0.2	1,514.4	76.9	1,781.0
Profit/(loss) for the period	-	-	-	-	-	-	78.3	(13.1)	65.2
Actuarial gain/(loss) in defined benefit pension plan	-	-	-	-	-	-	-	(0.4)	(0.4)
Total Comprehensive income/(expense) for the period	-	-	-	-	-	-	78.3	(13.5)	64.8
Dividends paid (note 4)	-	-	-	-	-	-	(31.0)	(12.0)	(43.0)
Movement in Own shares reserve	-	-	-	0.2	-	-	-	-	0.2
Movement in Share based payment reserve	-	-	-	-	(0.2)	-	-	-	(0.2)
Balance at 30 June 2012	153.9	-	36.3	(5.7)	5.0	0.2	1,561.7	51.4	1,802.8

Consolidated Cash Flow Statement (unaudited)

	Six months ended 30 June 2013 £ million	Six months ended 30 June 2012 £ million
Cash inflow/(outflow) before taxation and interest Taxation received/(paid) Interest paid	112.2   (0.1) (2.5)	38.0   -   (1.4)
Net cash inflow/(outflow) from operating activities	109.6	36.6
Investing activities: Purchase of property, plant and equipment Sale of property, plant and equipment	(0.2) -	(0.1) -
Net cash inflow/(outflow) from investing activities	(0.2)	(0.1)
Financing activities: Purchase of ordinary shares by Employee Benefit Trust1 Repayment of borrowings Equity dividend paid	-   (49.8) (21.7)	(0.7) -   -
Net cash inflow/(outflow) from financing activities	(71.5)	(0.7)
Increase/(decrease) in cash and cash equivalents in the period	37.9	35.8
Cash and cash equivalents at the start of the period	88.8	111.0
Effect of foreign exchange rate changes	5.8	2.8
Cash and cash equivalents at the period end	132.5	149.6
Reconciliation: Cash at bank Money market funds (included in portfolio investments)	106.3   26.2	111.2   38.4
Cash and cash equivalents at the period end	132.5	149.6

¹ Shares are disclosed in 'Own shares reserve' on the Consolidated Balance Sheet.

Notes to the Financial Statements

1.   Basis of Accounting

These condensed financial statements are the half-yearly consolidated financial statements of RIT Capital Partners plc and its subsidiaries for the six months ended 30 June 2013. They are prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, and with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the European Union, and were approved on 15 August 2013. These half-yearly financial statements should be read in conjunction with the Report and Accounts for the nine months ended 31 December 2012, which were prepared in accordance with IFRS, as adopted by the European Union, as they provide an update of previously reported information. The half-yearly consolidated financial statements have been prepared in accordance with the accounting policies set out in the notes to the consolidated financial statements for the nine months ended 31 December 2012 apart from IFRS 13 'Fair Value Measurement' and IAS 19 (revised) 'Employee Benefits' which have been applied for the first time. The impact of these standards is not material except for the disclosures shown in note 5.

Critical Accounting Assumptions and Judgements

Unquoted investments are valued at management's best estimate of fair value in accordance with IFRS, having regard to International Private Equity and Venture Capital Valuation Guidelines as recommended by the British Venture Capital Association. The inputs into the valuation methodologies adopted include observable historical data such as earnings or cash flow as well as more subjective data such as earnings forecasts or discount rates. As a result of this, the determination of fair value requires significant management judgement.

2.   Earnings Per Ordinary Share (unaudited)

The earnings per ordinary share for the six months ended 30 June 2013 is based on the net profit of £253.0 million (six months ended 30 June 2012: net profit of £65.2 million) and the weighted average number of ordinary shares in issue during the period of 154.9 million (six months ended 30 June 2012: 153.4 million) as shown below:

	Six months ended 30 June 2013  million	Six months ended 30 June 2012  million
Weighted average number of shares in issue (million)	154.9	153.4
Weighted average effect of Share Appreciation Rights (million)	0.1	0.2
	155.0	153.6

The earnings per ordinary share figure can be further analysed between revenue and capital as set out below:

	Six months ended 30 June 2013 £ million	Six months ended 30 June 2012 £ million
Net revenue profit/(loss)	(1.4)	(13.1)
Net capital profit/(loss)	254.4	78.3
Net profit/(loss)	253.0	65.2
	Pence per share	Pence per share
Revenue earnings per ordinary share - basic	(0.9)	(8.5)
Capital earnings per ordinary share - basic	164.2	51.0
Earnings per ordinary share - basic	163.3	42.5
	Pence per share	Pence per share
Revenue earnings per ordinary share - diluted	(0.9)	(8.5)
Capital earnings per ordinary share - diluted	164.1	50.9
Earnings per ordinary share - diluted	163.2	42.4

3. Net Asset Value Per Ordinary Share - Basic and Diluted

Net asset value per ordinary share is based on the following data:

	30 June 2013 (unaudited)	31 December 2012 (audited)
Net assets (£ million)	2,080.8	1,847.2
Number of shares in issue (million)	155.4	155.4
Own shares (million)	(0.4)	(0.5)
	155.0	154.9
Effect of dilutive potential ordinary shares:
Share Appreciation Rights (million)	0.1	0.1
Diluted shares	155.1	155.0
	30 June 2013 (unaudited) Pence per share	31 December 2012 (audited) Pence per share
Net asset value per ordinary share - basic	1,342.5	1,192.4
Net asset value per ordinary share - diluted	1,341.6	1,191.4

4. Dividends (unaudited)

	Six months ended 30 June 2013	Six months ended 30 June 2012
Dividends (£ million)	21.7	43.0
Dividends (Pence per share)	14.0	28.0

The Board of Directors declared an interim dividend of 14.0p per ordinary share (£21.7 million) on 7 March 2013. This amount was paid on 26 April 2013. The Board has declared the payment of a second interim dividend of 14.0p per ordinary share (£21.7 million) in respect of the year ending 31 December 2013. This will be paid on 18 October 2013 to shareholders on the register on 4 October 2013. A more detailed commentary may be found in the Chairman's Statement in the Report and Accounts for the nine months ended 31 December 2012.

The dividend declared during the six months ended 30 June 2012 of 28.0p comprised the 8.0p final dividend per ordinary share (£12.3 million) for the year ended 31 March 2012 and a 20.0p interim dividend per ordinary share (£30.7 million) for the period ended 31 December 2012. These amounts were paid on 24 August 2012.

5. Financial Assets & Liabilities (unaudited)

IFRS 13 requires the Group to classify its fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making those measurements. These are as follows:

·   Quoted prices (unadjusted) in active markets for identical assets or liabilities - Level 1

·   Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices) - Level 2

·   Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) - Level 3

The determination of what constitutes 'observable' requires significant judgement by the Group. The Group considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. Where adjustments have been required to quoted prices to arrive at fair value, or where a market price is available but the market is not considered active, the Group has classified these investments as Level 2.

The Group considers all unquoted direct investments and unquoted funds as Level 3 assets, as the valuations of these assets are not based on observable market data. Where other funds invest into illiquid stocks, these are also considered by the Group to be Level 3 assets.

The vast majority of the Group's assets and liabilities are measured at fair value on a recurring basis. The following table analyses within the fair value hierarchy these financial assets and liabilities at 30 June 2013:

As at 30 June 2013	Level 1 £ million	Level 2 £ million	Level 3 £ million	Total FVPL £  million
Investments held at fair value	639.8	757.6	576.6	1,974.0
Derivative financial instruments	-	36.6	-	36.6
Financial assets at fair value through profit and loss	639.8	794.2	576.6	2,010.6
Derivative financial instruments	-	(26.3)	-	(26.3)
Financial liabilities at fair value through profit and loss	-	(26.3)	-	(26.3)
Net financial assets at fair value through profit and loss	639.8	767.9	576.6	1,984.3

Movements in Level 3 assets

Period ended 30 June 2013	Opening balance £ million	Purchases £ million	Sales £ million	Realised gains through profit & loss in the period £ million	Unrealised gains through profit & loss in the period £ million	Closing balance £ million
Investments held at fair value:
Quoted Equity	1.9	0.6	(0.3)	-	(0.1)	2.1
Unquoted Equity	478.9	73.6	(91.7)	5.0	43.9	509.7
Absolute Return & Credit	57.2	7.9	(7.2)	1.5	5.4	64.8
	538.0	82.1	(99.2)	6.5	49.2	576.6

The gains and losses shown in the table above for Level 3 assets are included in Gains/(losses) on portfolio investments held at fair value in the Consolidated Income Statement.

During the interim period there were no transfers of investments between fair value hierarchies and no financial assets or liabilities were reclassified as a result of any change in their purpose or use.

The methods used to determine fair value for those assets classified as Level 2 and Level 3 are unchanged from those described in the audited Report and Accounts of the Group for the nine month period ended 31 December 2012.

For all other financial assets and liabilities as shown on the Consolidated Balance Sheet on page 9, the carrying amount is a reasonable approximation of fair value.

On 22 December 2010 the Company signed a three year $400 million credit facility with National Australia Bank. The facility was drawn in full on 6 January 2011. Following repayments of $160.0 million on 6 July 2012 and $80.0 million on 7 January 2013 the amount outstanding at 30 June 2013 on this facility was $160.0 million (£105.4 million). At 31 December 2012 the amount outstanding was $240.0 million (£147.8 million).

6. Comparative Information

The financial information contained in this Half-Yearly Financial Report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half year ended 30 June 2013 has been reviewed not audited. The financial information for the period ended 30 June 2012 has been presented for the first time in this Half-Yearly Financial Report.

The information for the period ended 31 December 2012 has been extracted from the latest published audited financial statements. The audited financial statements for the period ended 31 December 2012 have been filed with the Registrar of Companies and the report of the auditors on those accounts contained no qualification or statement under section 498(2) or (3) of the Companies Act 2006.

REGULATORY DISCLOSURES

Statement of Directors' Responsibilities

In accordance with the Disclosure and Transparency Rules 4.2.4R, 4.2.7R and 4.2.8R, we confirm that to the best of our knowledge:

(a) The condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union, as required by the Disclosure and Transparency Rule 4.2.4R;

(b) The Chairman's Statement includes a fair review of the information required to be disclosed under the Disclosure and Transparency Rule 4.2.7R, interim management report. This includes an indication of important events that have occurred during the first six months of the financial year, and their impact on the condensed set of financial statements presented in the Half-Yearly Financial Report. A description of the principal risks and uncertainties for the remaining six months of the financial year is set out below; and

(c) There were no changes in the transactions or arrangements with related parties as described in the Group's Report and Accounts for the nine months ended 31 December 2012 that would have had a material effect on the financial position or performance of the Group in the first six months of the current financial year.

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Group for the second half of the financial year are substantially the same as those described in the Report and Accounts for the nine months ended 31 December 2012. As with any investment company, the main risk is market risk.

Going concern

The factors likely to effect the Group's ability to continue as a going concern were set out in the Report and Accounts for the nine months ended 31 December 2012. As at 30 June 2013, there have been no significant changes to these factors. Having reviewed the Company's forecasts and other relevant evidence, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half-yearly condensed financial statements.

Rothschild

15 August 2013

For and on behalf of the Board

END OF HALF-YEARLY FINANCIAL REPORT EXTRACTS

APPOINTMENT OF DIRECTOR

Hannah Rothschild has today been appointed as a non-independent, non-executive Director of the Company.

Hannah Rothschild is not currently a director of any other publicly quoted companies and has no past directorships of publicly quoted companies held in the past five years.  There are no details requiring disclosure under paragraphs 9.6.13 R (2) to (6) of the UKLA Listing Rules. 

 

END

 

 

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