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Murray Inc Trust PLC (MUT)

  Print      Mail a friend       Annual reports

Tuesday 17 February, 2009

Murray Inc Trust PLC

Half Yearly Report

RNS Number : 4621N
Murray Income Trust PLC
17 February 2009
 

Murray Income Trust PLC

Results for the half year ended 31 December 2008 



The Directors of Murray Income Trust PLC report the unaudited results for the half year ended 31 December 2008.


Interim Board Report


Performance

The UK equity market fell over the six-month period to 31 December 2008, with a negative Net Asset Value total return for the Company of 19.0%.  This compares against the benchmark, the FTSE All-Share Index, which fell by 21.1%. On a total return basis, the share price declined by 14.4% to 450.5p, which reflected a decrease in the discount to net asset value at which the shares trade.


Manager's Commentary


Background

The global financial system suffered a period of acute instability during the six-month period under review. The market rose in July and August as generally upbeat earnings, M&A activity and falls in commodity prices buoyed investor sentiment. However, this quickly reversed during September and October, as a number of high-profile failures in the US drew attention to the fragility of the financial system. The announcement that Lloyds would purchase HBoS highlighted the seriousness of the situation, as any concerns over competition policy were put to one side. As the situation deteriorated, the UK government took further action by guaranteeing bank deposits and debts, coupled with the announcement of an injection of £50bn of capital. During the second week of October, central banks participated in a co-ordinated global interest rate cut, with the Bank of England reducing interest rates by 0.5%. Market volatility continued to increase during November. The Bank of England cut interest rates by 1.5% to 3%, as the focus turned from the impact of the crisis on the financial markets to the real economy. However, having hit an intra-period low during the third week of November, the market rallied strongly, helped by a relaxation of fiscal policy in the pre-budget report, coupled with the bail out of Citigroup. This rally continued into December, which, by comparison, was a relatively quiet month, though the Bank of England cut interest rates to 2.0%.


The drumbeat of poor domestic newsflow grew louder over the period. Both the Manufacturing and Service Purchasing Managers' Indices highlighted a pattern of dramatically weakening activity. GDP fell by 0.6% in the third quarter, and by a further 1.5% in the fourth quarter of 2008. The November quarterly inflation report reiterated the sharp slowdown, and warned that GDP could shrink by 2% over 2009, with inflation likely to decline to 1% by 2010. Indeed, CPI inflation reached a high watermark of 5.2% in September, and had fallen to 4.1% in November, when commodity and energy prices retrenched as the outlook for global demand deteriorated. Mortgage approvals hit a new low, and house prices continued to decline, with the Nationwide reporting a decrease of 9.2% during the six-month period, resulting in a decline of 15.9% during 2008 (or £29,000 off the value of the average house). Unemployment increased by 137,000 to 1.86 million in the three months to October; this represents the highest level in over 10 years. As mentioned above, the MPC abandoned its policy of incrementalism, reducing the base rate to 2.0% by the end of the period from 5.0% at the start. In sympathy with the deterioration in the economy and lower interest rates, sterling weakened considerably, falling against the dollar from 1.99 at the beginning of July to 1.45 by the end of December.

 

Despite employing some portfolio protection during the period, this benefit was not enough to offset the negative impact of the Trust's gearing as the market fell. However, the Trust outperformed its benchmark, helped in part by the underweight position in the Mining Sector. In general, the more defensive areas of the market continued to outperform during the period. Companies with significant levels of debt, or whose earnings were impacted by a slowdown in global growth, as well as the Financial Sector, performed particularly poorly. From a size perspective, the FTSE 100 outperformed both the Mid and Small Cap Indices, the latter two suffering from their greater domestic exposure and generally weaker balance sheets.


Activity

During the period, a number of new holdings were added to the portfolio. We introduced a position in Rolls Royce, given its growth opportunities, long order book and strong balance sheet. In addition, we purchased a small holding in Persimmon, where we felt that the shares had been oversold, as, despite the current weak operating environment, the experienced management team and long land-bank positioned the company well for the future. These purchases were partly-funded through the sale of retailers HMV and Kesa, due to concerns over the outlook for consumer spending.  


We continued the process of recycling capital from some of the stronger-performing companies into more attractively-valued companies. At the beginning of the period, we further reduced our holdings in Anglo American and Rio Tinto, reinvesting the proceeds in Mothercare and Whitbread, amongst others. Given concerns over the proposed takeover by Lloyds TSB of HBoS, we decided to sell our holding in the former. We reinvested the proceeds in Barclays, purchasing the Mandatorily Convertible Notes and the Reserve Capital Instruments, both of which provide an income for the Trust. We participated in the rights issues of both Centrica and Standard Chartered, partly funded by the sale of the holding in Premier Foods, where the deterioration in trading conditions had made the company's high debt level look untenable. During the period, we purchased reverse convertibles in BP and HSBC, which help to generate additional income for the Trust.


During the interim period, the Company increased its gearing from £40m to £43m, as we took the decision to increase gearing slightly, with more value being apparent as equities became cheaper.  


Outlook

At the time of writing, although the UK equity market has fallen since the start of the new calendar year, it remains above the lows set in November. The market remains extremely fragile, and sentiment particularly poor. Indeed, this degree of pessimism may augur well for a recovery. The severe strains in the financial market during September and October have inevitably led to a sharp contraction in global economic activity. Although both fiscal and monetary policy responses have been swift, infrastructure spending and the beneficial impact of lower interest rates will require time to take effect. Therefore, 2009 is likely to be an extremely difficult year from an economic perspective, as economies around the world adjust to lower final demand. Valuations on most absolute and relative measures look attractive on a longer-term basis. For example, if earnings were to halve, the P/E ratio would still only return to around its average over the past 20 years. However, volatility is likely to remain a significant characteristic of the market until the economic outlook becomes clearer.


Treasury Shares

At the Annual General Meeting held in November 2008, Shareholders renewed the authority for the Company to hold shares bought back by it as Treasury shares, rather than cancel them immediately. During the period from 1 July to 31 December 2008, 28,000 Ordinary shares were bought back and held in Treasury. As of 17 February 2009, the total number of Ordinary shares bought back and held in Treasury was 1,827,000. To date, no shares have been re-issued from Treasury.


Dividend

A first interim dividend of 5.5p was paid on 16 January 2009 to Shareholders on the register at the close of business on 17 December 2008. A second interim dividend of 5.5p will be paid on 17 April 2009 to Shareholders on the register at the close of business on 11 March 2009. The third interim dividend of 5.5p will be paid on 17 July 2009 to Shareholders on the register at the close of business on 12 June 2009.  The outlook for dividends has deteriorated as profits have come under increased pressure. The revenue account for this financial year will be affected, although a lower interest charge relating to the Company's debt and the weakness of Sterling will help cushion part of the fall, due to the number of companies which now pay dividends in US dollars. For the financial year 2010, dividend growth is again likely to be negative, although it is too early to gauge how this may affect the Company's revenue account. However, the Company does maintain reserves that should provide a source of support.


VAT on Management Fees

It was noted in last year's annual report that HM Revenue & Customs conceded defeat over the charging of VAT on the management fees incurred by UK investment trusts. The half-yearly financial statements reflect a repayment due of £1,555,612, representing the VAT charged on our management fees between 2004 and 2007, which has subsequently been received. In accordance with the Company's accounting policy, this sum has been credited 50% to revenue and 50% to capital. In due course, we will be able to recognise further sums once there is greater certainty over the amounts recoverable by the Manager in respect of the VAT incurred on management fees for the periods 2001 to 2003 and 1990 to 1996.


Risks and Uncertainties
The Board has identified a number of key risks that affect its business:
 
-        Resource risk – the Company relies on services provided by third parties, including, in particular, the Manager, to whom responsibility for the management of the Company has been delegated under an investment management agreement (the “Agreement”). The terms of the Agreement cover the scope of the duties and obligations expected of the Manager. The Board reviews the performance of the Manager on a regular basis, and their compliance with the Agreement formally on an annual basis.
-        Investment objective – the objective of the Company is to achieve a high and growing income combined with capital growth. As a consequence, the investment portfolio may not always match that of the stockmarket as a whole, with a consequential impact on Shareholder returns. The Board’s aim is to maximise absolute returns to Shareholders while managing risk by ensuring an appropriate diversification of stocks and sectors.
-        Investment policy and gearing – a major risk affecting the Company is inappropriate sector and stock selection, leading to under-performance relative to the Company’s benchmark index and peer group. In addition, the use of borrowing facilities to invest in markets may have a negative impact if markets fall. To mitigate these risks, the Manager operates within investment guidelines and agreed levels of borrowing. Performance against the benchmark index and the peer group is regularly monitored. During the period, an element of portfolio protection was put in place by the purchase of put options.
-        Discount volatility – investment trust shares tend to trade at discounts to their underlying net asset values, which can fluctuate considerably. To seek to minimise the impact of such fluctuations, the Company has operated a share buy-back programme for a number of years.
-        Regulatory risk - the Company operates in a complex regulatory environment and faces a number of related risks. A breach of Section 842 of the Income and Corporation Taxes Act 1988 could result in the Company being subject to capital gains tax on the sale of its investments. Serious breach of other regulations, such as the UKLA Listing Rules and the Companies Acts, could lead to suspension from the Stock Exchange and reputational damage. The Board receives monthly compliance reports from the Manager to monitor compliance with regulations.
 
Directors’ Responsibility Statement
The Directors are responsible for preparing the half-yearly financial report, in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:
-        the condensed set of financial statements within the half-yearly financial report has been prepared in accordance with the Accounting Standards Board’s statement “Half-Yearly Financial Reports”; and
-        the Interim Board Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FSA’s Disclosure and Transparency Rules.


The half-yearly financial report for the six months to 31 December 2008 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements, and has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information. 


By order of the Board

Aberdeen Asset Management PLC

Secretary

17 February 2009



  MURRAY INCOME TRUST PLC

INCOME STATEMENT (UNAUDITED)

 


Six months ended

31 December 2008

 


Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Losses on investments


-

(83,771)

(83,771)

Investment income

3

8,486 

-

8,486 

Interest receivable


106 

-

106 

Other income


388 

-

388 

Investment management fees


(478)

(478)

(956)

Recoverable VAT on management fees


778 

778 

1,556 

Administrative expenses


(406)

-

 (406)



__________

__________

__________

Net return before finance costs and taxation

 

8,874 

(83,471)

(74,597)

 





Finance costs 


(534)

(534)

(1,068)



__________

__________

__________

Return on ordinary activities before and after taxation

 

8,340 

(84,005)

(75,665)

 


__________

__________

__________

Return per Ordinary share (pence):

4

12.9 

(130.1)

 (117.2)

 


__________

__________

__________


The total column of this statement represents the profit and loss account of the Company.

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

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


Ordinary dividends on equity shares (£'000)

2

10,662 

-

10,662 



__________

__________

__________


The above dividend information does not form part of the Income Statement.


  MURRAY INCOME TRUST PLC

INCOME STATEMENT (UNAUDITED)



 

Six months ended

31 December 2007

 


Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Losses on investments


-

(30,386)

(30,386)

Investment income

3

9,228

-

9,228

Interest receivable


122

-

122

Other income


-

-

-

Investment management fees


(701)

(701)

(1,402)

Recoverable VAT on management fees


-

-

-

Administrative expenses


(453)

-

(453)



__________

__________

__________

Net return before finance costs and taxation

 

8,196 

(31,087)

(22,891)

 





Finance costs 


(565)

(565)

(1,130)



__________

__________

__________

Return on ordinary activities before and after taxation

 

7,631 

(31,652)

(24,021)

 


__________

__________

__________

Return per Ordinary share (pence):

4

11.7 

(48.7)

 (37.0)

 


__________

__________

__________


The total column of this statement represents the profit and loss account of the Company.

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

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


Ordinary dividends on equity shares (£'000)

2

9,272 

-

9,272 



__________

__________

__________


The above dividend information does not form part of the Income Statement.

  MURRAY INCOME TRUST PLC

INCOME STATEMENT  (UNAUDITED)



 

Year ended

30 June 2008

 


Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Losses on investments


-

(119,233)

 (119,233)

Investment income

3

22,044 

-

22,044 

Interest receivable


291 

-

291 

Other income


55 

-

55 

Investment management fees


(1,291)

(1,291)

 (2,582)

Recoverable VAT on management fees


-

-

-

Administrative expenses


(976)

-

 (976)



__________

__________

__________

Net return before finance costs and taxation

 

20,123 

(120,524)

 (100,401)

 




 

Finance costs 


(1,143)

(1,146)

(2,289)



__________

__________

__________

Return on ordinary activities before and after taxation

 

18,980 

(121,670)

 (102,690)

 


__________

__________

__________

Return per Ordinary share (pence):

4

29.3 

(187.6)

 (158.3)

 


__________

__________

__________



The total column of this statement represents the profit and loss account of the Company.

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

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


Ordinary dividends on equity shares (£'000)

2

16,082 

-

16,082 



__________

__________

__________


The above dividend information does not form part of the Income Statement.


  MURRAY INCOME TRUST PLC

BALANCE SHEET (UNAUDITED)


 

 

As at

As at

As at

 


31 December

31 December

30 June

 


2008

2007

2008

 

Notes

£'000

£'000

£'000

Non-current assets




 

Investments at fair value through profit or loss


351,946

516,051

433,825

 




 

Current assets




 

Loans and receivables


3,965

2,358

 3,080

Cash and short-term deposits

 

1,361

11,063

6,390



__________

__________

__________

 


 5,326

13,421

9,470

 




 

Creditors: amounts falling due within one year


(217)

(6,645)

 (2,759)



__________

__________

__________

Net current assets

 

5,109

6,776

6,711



__________

__________

__________

Total assets less current liabilities


357,055

522,827

440,536

 




 

Creditors: amounts falling due after more than one year




 

Bank loan


(43,000)

(35,000)

(40,000)



__________

__________

__________

Net assets

 

314,055

487,827

400,536

 


__________

__________

__________

 




 

Share capital and reserves




 

Called-up share capital


16,604

16,604

16,604

Share premium account


7,955

7,955

7,955

Capital redemption reserve


4,997

4,997

4,997

Capital reserve 

5

261,039

437,028

345,198

Revenue reserve


23,460

21,243

25,782



__________

__________

__________

Equity Shareholders' funds

 

314,055

487,827

400,536

 


__________

__________

__________

Net asset value per Ordinary share (pence):

6

486.2

751.5

619.9

  MURRAY INCOME TRUST PLC

RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS (UNAUDITED)


Six months ended 31 December 2008

 

 

 

 

 

 

 


Share 

Capital




 

Share

premium

redemption

Capital

Revenue


 

Capital 

account

reserve

reserve

reserve

Total 

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 June 2008

16,604 

7,955 

4,997 

345,198 

25,782 

400,536 

Repurchase of own shares

-

-

-

(154)

-

(154)

Return on ordinary activities after taxation

-

-

-

(84,005)

8,340 

(75,665)

Dividends paid

-

-

-

-

(10,662)

(10,662)


__________

__________

__________

__________

__________

__________

Balance at 31 December 2008

16,604 

7,955 

4,997 

261,039 

23,460 

314,055 


__________

__________

__________

__________

__________

__________

 







Six months ended 31 December 2007







 


Share 

Capital




 

Share

premium

redemption

Capital

Revenue


 

capital

account

reserve

reserve

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 June 2007

16,604 

7,955 

4,997 

470,177 

22,884 

522,617 

Repurchase of own shares

-

-

-

(1,497)

-

(1,497)

Return on ordinary activities after taxation

-

-

-

(31,652)

7,631 

(24,021)

Dividends paid

-

-

-

-

(9,272)

(9,272)


__________

__________

__________

__________

__________

__________

Balance at 31 December 2007

16,604 

7,955 

4,997 

437,028 

21,243 

487,827 


__________

__________

__________

__________

__________

__________

 







Year ended 30 June 2008







 


Share 

Capital




 

Share

premium

redemption

Capital

Revenue


 

capital

account

reserve

reserve

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 June 2007 as previously reported

16,604 

7,955 

4,997 

470,177 

22,884 

522,617 

Repurchase of own shares

-

-

-

(3,309)

-

(3,309)

Return on ordinary activities after taxation

-

-

-

(121,670)

18,980 

(102,690)

Dividends paid

-

-

-

-

(16,082)

(16,082)


__________

__________

__________

__________

__________

__________

Balance at 30 June 2008

16,604 

7,955 

4,997 

345,198 

25,782 

400,536 


__________

__________

__________

__________

__________

__________

  MURRAY INCOME TRUST PLC 

CASH FLOW STATEMENT (UNAUDITED)


 

Six months

Six months

Year

 

ended

ended

ended

 

31 December

31 December

30 June

 

2008

2007

2008

 

£'000

£'000

£'000

Net return before finance costs and taxation

(74,597)

(22,891)

(100,401)

Adjustments for:



 

Losses on investments

83,771 

30,386 

119,233 

(Increase)/decrease in accrued income

(1,156)

594 

(57)

Increase in prepayments

(40)

(19)

 (41)

(Decrease)/increase in accruals

(118)

41 

(193)


__________

__________

__________

Net cash inflow from operating activities

7,860 

8,111 

18,541 

 



 

Servicing of finance



 

Interest paid

(1,060)

(880)

(2,274)


__________

__________

__________

Net cash outflow from servicing of finance

(1,060)

(880)

 (2,274)

 



 

Financial investment



 

Purchases of investments

(35,319)

(62,868)

(132,881)

Sales of investments

31,710 

70,120 

129,919 


__________

__________

__________

Net cash (outflow)/inflow from financial investment

(3,609)

7,252 

(2,962)

 



 

Equity dividends paid

(10,662)

 (9,272)

(16,082)

 



 

Management of liquid resources



 

Cash drawn/(placed) on short-term deposit 

5,000 

400 

(3,400)


__________

__________

__________

Net cash (outflow)/inflow before financing

(2,471)

5,611 

(6,177)

 



 

Financing



 

Drawdown of loans

3,000 

5,000 

10,000 

Purchase of own shares

(558)

(1,221)

(2,906)


__________

__________

__________

Net cash inflow from financing

2,442 

3,779 

7,094 


__________

__________

__________

Net (decrease)/increase in cash

(29)

9,390 

917 


__________

__________

__________

  Notes to the Financial Statements


1. 

Accounting policies 

 

(a) 

Basis of accounting

The accounts have been prepared under the historical cost convention, as modified to include the revaluation of investments and in accordance with applicable UK Accounting Standards, with pronouncements on half-yearly reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies' (issued January 2009). They have also been prepared on the assumption that approval as an investment trust will continue to be granted.

 

The financial statements and the net asset value per share figures have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP).

 

The interim accounts have been prepared using the same accounting policies as the preceding annual accounts.

 

 

 


(b) 

 

Dividends payable

Dividends are recognised in the period in which they are paid.


2.

 

Ordinary dividends

Ordinary dividends paid on equity shares deducted from reserves:

 


Six months ended

Six months ended

 Year 
ended 

 


31 December 2008

31 December 2007

30 June 
2008

 


 £'000 

 £'000 

 £'000 

 

2007 third interim dividend - 5.00p

-

-

3,257 

 

2007 final dividend - 9.25p 

-

-

6,015 

 

2008 first interim dividend - 5.25p 

-

-

3,414 

 

2008 second interim dividend - 5.25p 

-

-

3,396 

 

2008 third interim dividend - 5.25p 

3,396

3,257

-

 

2008 final dividend - 11.25p 

7,266

6,015

-



__________

__________

__________

 

 

10,662

9,272

16,082


 

 

Six months ended

Six months ended

Year 
ended

 


31 December 2008

31 December 2007

30 June 
2008

3.

Investment income

£'000

£'000

£'000

 

UK dividend income

8,189

8,480

21,101

 

Bond interest

297

748

943



__________

__________

__________

 

 

8,486

9,228

22,044


 

 

 Six months ended 

 Six months ended 

 Year 
ended 

 


31 December 2008

31 December 2007

30 June 
2008

4.

Return per share

 p 

 p 

 p 

 

Revenue return

12.9

11.7

29.3

 

Capital return

(130.1)

(48.7)

(187.6)



__________

__________

__________

 

Total return

(117.2)

(37.0)

(158.3)

 


__________

__________

__________

 

The figures are based on the following attributable assets: 

 


 Six months ended 

 Six months ended 

 Year 
ended 

 


31 December 2008

31 December 2007

30 June 
2008

 


 £'000 

 £'000 

 £'000 

 

Revenue return

8,340

7,631

18,980

 

Capital return

(84,005)

(31,652)

(121,670)



__________

__________

__________

 

Total return

(75,665)

(24,021)

(102,690)

 


__________

__________

__________

 

Weighted average number of Ordinary shares in issue

64,592,296

65,035,750

64,869,985



__________

__________

__________


 

 

 

Investment

 

 



holdings

 

 


Realised

gains

Total

5.

Capital reserve

£'000

£'000

£'000

 

Six months ended 31 December 2008



 

 

At 1 July 2008

345,915

(717)

345,198

 

Movement in fair value gains

(27,494)

(56,277)

(83,771)

 

Repurchase of own shares

(154)

-

(154)

 

Capital expenses

(1,011)

-

(1,011)

 

Recoverable VAT on management fees

778

-

778



__________

__________

__________

 

At 31 December 2008

318,033

(56,994)

261,039

 


__________

__________

__________

 

Six months ended 31 December 2007



 

 

At 1 July 2007

320,641

149,536

470,177

 

Movement in fair value gains

21,308

(51,694)

(30,386)

 

Repurchase of own shares

(1,497)

-

(1,497)

 

Capital expenses

(1,266)

-

(1,266)



__________

__________

__________

 

At 31 December 2007

339,186

97,842

437,028

 


__________

__________

__________

 

Year ended 30 June 2008



 

 

At 1 July 2007

320,641

149,536

470,177

 

Movement in fair value gains

31,020

(150,253)

(119,233)

 

Repurchase of own shares

(3,309)

-

(3,309)

 

Capital expenses

(2,437)

-

(2,437)



__________

__________

__________

 

At 30 June 2008

345,915

(717)

345,198



__________

__________

__________


 

 

As at

As at

As at

6.

Net asset value per share

31 December 2008

31 December 2007

30 June 
2008

 

Attributable net assets (£'000)

314,055

487,827

400,536

 

Number of Ordinary shares in issue

64,589,458

64,914,658

64,617,458

 

Net asset value per Ordinary share (p)

486.2

751.5

619.9


7.

 

Transaction costs

During the period, expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains on investment in the Income Statement. The total costs were as follows:

 




 

 


Six months ended

Six months ended

Year 
ended

 


31 December 2008

31 December 2007

30 June 
2008

 


£'000

£'000

£'000

 

Purchases

106 

413 

736 

 

Sales

29 

65 

113 



__________

__________

__________

 

 

135 

478 

849 



__________

__________

__________


8.

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 six months ended 31 December 2008 and 31 December 2007 has not been audited.

 

The information for the year ended 30 June 2008 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.


9.

This Half-Yearly Financial Report was approved by the Board on 17 February 2009.


10.    The financial information in this report comprises non-statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the half years to 31 December 2008 and 31 December 2007 has not been audited or reviewed by the Company's auditors. The financial information for the year ended 30 June 2008 has been extracted from published audited accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified under Section 235 of the Companies Act 1985.


11.    Copies of the Company's report for the half-year ended 31 December 2008 will be posted to shareholders in February 2009 and will be available thereafter on the Company's website: www.murray-income.co.uk and from the Secretary at the Registered Office, 40 Princes Street, Edinburgh EH2 2BY.



  INVESTMENT PORTFOLIO

AS AT 31 DECEMBER 2008



 

 

Valuation

Total assets

Investment

Sector

£'000

%

Royal Dutch Shell ('B' shares)

Oil & Gas Producers

20,712

5.8

AstraZeneca

Pharmaceuticals & Biotechnology

17,684

5.0

BP

Oil & Gas Producers

17,463

4.9

GlaxoSmithKline

Pharmaceuticals & Biotechnology

16,699

4.7

Centrica

Gas, Water and Multi-utilities

15,471

4.3

Vodafone 

Mobile Telecommunications

14,734

4.1

National Grid 

Gas, Water and Multi-utilities

12,887

3.6

British American Tobacco

Tobacco

11,880

3.3

HSBC 

Banks 

11,064

3.1

Morrison

Food & Drug Retailers

9,528

2.7

Top ten investments

 

148,122

41.5

Arriva

Travel and Leisure

9,525

2.7

Imperial Tobacco

Tobacco

9,435

2.6

BT

Fixed Line Telecommunications

8,977

2.5

Tesco

Food & Drug Retailers

8,460

2.4

Unilever

Food Producers 

8,432

2.4

Daily Mail & General Trust

Media 

7,657

2.1

Aviva

Life Insurance

7,539

2.1

Whitbread

Travel & Leisure

7,538

2.1

Cobham

Aerospace & Defence

7,398

2.1

Associated British Foods

Food Producers 

7,395

2.1

Top twenty investments

 

230,478

64.6

Ladbrokes

Travel & Leisure

7,030

2.0

Land Securities

Real Estate

6,106

1.7

Mothercare

General Retailers

6,084

1.7

Venture Production

Oil & Gas Producers

6,034

1.7

Provident Financial

General Financial

5,762

1.6

Segro

Real Estate

5,558

1.6

HSBC Reverse Convertible

Banks 

5,357

1.5

AMEC

Oil Equipment, Service and Distribution

5,312

1.5

Millennium & Copthorne Hotels

Travel & Leisure

5,252

1.5

Friends Provident

Life Assurance

4,843

1.4

Top thirty investments

 

287,816

80.8

Wolseley

Support services

4,723

1.3

Standard Chartered

Banks 

4,712

1.3

Rolls Royce

Aerospace & Defence

4,574

1.3

Tomkins

General Industrials

4,541

1.3

Close Bros

General Financial

4,497

1.3

Barclays

Banks 

4,419

1.2

Aberforth Smaller Companies Inv Trust

Equity Investment Instruments

4,215

1.2

BP Reverse Convertible

Oil & Gas Producers

4,201

1.2

British American Tobacco Reverse Convertible

Tobacco

3,929

1.1

GKN

Automobiles & parts

3,366

0.9

Top forty investments

 

330,993

92.9

Royal Bank of Scotland

Banks 

2,985

0.8

Anglo American

Mining

2,876

0.8

BBA Aviation

Industrial Transportation

2,630

0.7

Barclays Bank 9.75% Mandatorily Convertible

Banks 

2,590

0.7

Weir Group

Industrial Engineering

2,480

0.7

Persimmon

Household Goods 

2,398

0.7

Rio Tinto

Mining

1,848

0.5

Barclays Bank 14% Reserve Capital Instruments

Banks 

1,700

0.5

Dunedin Smaller Companies Inv Trust

Equity Investment Instruments

1,420

0.3

AGA Rangemaster Group

Household Goods 

26

0.0

Total investments

 

351,946

98.6

Net current assets

 

5,109

1.4

Total assets

 

357,055

100.0



This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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