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Murray Inc Trust PLC (MUT)

  Print      Mail a friend       Annual reports

Tuesday 15 February, 2011

Murray Inc Trust PLC

Half Yearly Report

RNS Number : 2472B
Murray Income Trust PLC
15 February 2011
 



Murray Income Trust PLC

Results for the half year ended 31 December 2010

 

Key Facts

 

·     Murray Income's Net Asset Value increased by 21.4% on a total return basis.

 

·     Share price rose from 533.0p to 632.0p over the six-month period.

 

·     Second interim dividend of 5.5p will be paid on 15 April 2011.

 

The Directors of Murray Income Trust PLC report the unaudited results for the half year ended 31 December 2010.

 

Interim Board Report

 

Performance

The UK equity market performed strongly over the six month period to 31 December 2010, with a positive net asset value total return for the Company of 21.4%. This compares with the benchmark, the FTSE All-Share Index, which rose by 22.0%. On a total return basis, the Company's share price increased by 21.9% to 632.0p, which reflected a small narrowing of the discount to net asset value at which the shares trade.

 

Manager's Commentary

 

Background

The market continued its recovery during the interim period. Improving economic conditions and additional stimulus in the United States, coupled with robust company results benefiting from improved operating leverage, helped to drive the market forward. Risk appetite and commodity prices rallied in concert with the improving macro-economic backdrop. However, a salient reminder that the recovery was unlikely to pursue an even path occurred during November, as investors fretted over Ireland and sovereign debt concerns in other peripheral euro area countries. A further package of banking reform and fiscal consolidation in Ireland, underpinned by a broad financial support package from the European Union and the International Monetary Fund, assuaged investor concerns. Investor interest focused on mining and industrial companies which outperformed, while the more defensive areas of the market, such as pharmaceuticals and tobacco, lagged. From a size perspective, the Mid Cap Index, given its exposure to industrial and cyclical companies, outperformed both the FTSE 100 (despite the recovery in the BP share price) and the Small Cap Index.

 

Over the six months, domestic economic newsflow was mixed, but the rebalancing of the economy towards net exports and away from consumption continued. The UK economy maintained its recovery in the third quarter, with GDP growth ahead of expectations at 0.7%. Encouragingly, final demand, rather than stock-building, lay behind the expansion. However, initial estimates of fourth quarter GDP (released after the period end) disappointingly suggested a fall of 0.5%, highlighting that economic expansion remains challenging, even if part of the reported shortfall was due to weather effects. Unhelpfully, inflation has remained above the Bank of England's target level of 2.0%, rising to 3.7% by the end of the period. The principal reasons for this have been rising import prices reflecting the fall in Sterling, higher energy and commodity prices, driven by demand from emerging economies and, finally, the increases in VAT. The Monetary Policy Committee (MPC) remains sanguine that the level of spare capacity in the economy will return inflation to its target over the medium term. This is to some extent validated by wage settlements and average earnings increasing slowly (albeit squeezing living standards as real wage growth is negative). With still-limited signs of second-round effects, it seems likely that the MPC will endeavour to keep interest rates on hold at 0.5%, as they did throughout the period under review. As a touchstone for the approaching period of fiscal consolidation and pressure on household budgets, housing data remains weak, with little sign of an improvement in mortgage approvals.

 

Economic growth outside the UK was generally more encouraging, albeit regionally uneven, than expected over the second half of 2010, and this provided positive momentum to equity markets. In the United States, third quarter GDP grew by 0.6%, with other business and consumer data-points suggesting further robust growth to the year-end.  In the euro area, in the third quarter, GDP increased by 0.4%, with strength in Germany helping to counteract the weakness in certain other member countries.  Emerging markets, which now account for two-thirds of global growth, have continued to experience a strong recovery. For example, Chinese GDP growth was 9.6% on an annualised basis in the third quarter, with the most recent surveys consistent with further robust expansion.

 

The Company's net asset value performed broadly in line with the benchmark over the period. The equity portion of the portfolio marginally underperformed. The underweight position in the mining sector (due to the lack of dividend yield and quality concerns over a number of companies), was the principal cause of the shortfall despite strong relative returns from the oil & gas services, travel & leisure and automobiles sectors. Although the cash position (held to cover the potential assignment of put options) was a relative drag on performance, the Company's gearing, which was marginally increased over the period, provided a benefit to the net asset value performance.

 

Activity

As in previous periods, we continued to add to high-quality, generally larger companies, funded mostly through the reduction of cyclical holdings that had performed well and looked expensive, and also a small increase in gearing. This included additions to Unilever, Roche, Pearson, ENI and Sage. Reductions to holdings were mostly through the assignment of options and included Millennium & Copthorne, Weir, Amec and GKN. We introduced one new holding during the period, GDF Suez, the international utility formed from the merger of Gaz De France and Suez in 2008. The company offers an attractive and efficient mix of upstream and downstream activities with good international growth prospects. The balance sheet is strong and the shares provide a dividend yield above 5%. From an income-oriented perspective, we continued to write options, with puts on companies including Tesco, GlaxoSmithKline, Vodafone and Centrica, and calls on Weir, Whitbread and Associated British Foods.

 

Outlook

From an operational perspective, the holdings are generally performing well, and our meetings with management have been largely positive. In addition, although the market has recovered strongly, valuations do not look stretched on an absolute or relative basis, and corporate balance sheets are generally in good shape. Clearly, risks still exist including inflationary pressures, the pace of fiscal consolidation and European sovereign debt concerns. However, the portfolio retains exposure to high-quality companies, with strong competitive positions and healthy financial characteristics, capable of generating attractive earnings and dividend growth over the longer term. We continue to believe that these attributes are the best way to ensure good performance. Overseas equities represent 5.8% of total assets.

 

Dividends

A first interim dividend of 5.5p was paid on 14 January 2011 to Shareholders on the register at the close of business on 17 December 2010. A second interim dividend of 5.5p will be paid on 15 April 2011 to Shareholders on the register at the close of business on 11 March 2011. The third interim dividend of 5.5p will be paid on 15 July 2011 to Shareholders on the register at the close of business on 10 June 2011. The outlook for dividends has marginally improved over the period aided by the realisation of healthy corporate profits. The income from option writing also provides a useful fillip. Furthermore, the repayments of VAT charged on management fees will help the income account. It remains the Directors' intention to pay a total dividend for the year at least equal to that paid for the year ending 30 June 2010.

 

Manager

Anne Richards, Aberdeen Asset Management's Chief Investment Officer and currently co-manager of the Company with Charles Luke, will be stepping back from day to day responsibility.  The Company will continue to be managed by Charles with the support of the Manager's Pan European Equity Team. The Board wishes to thank Anne for her work on behalf of the Company and looks forward to continuing to work with Charles.

 

VAT on Management Fees

During the period, the Company received repayment of £1,476,057, representing VAT charged on our investment management fees for the periods 1990 to 1996, and 2001 to 2003. (As noted in previous Annual Reports, the Company has already received repayments of £818,000, representing partial repayment of VAT on management fees for the period 2001 to 2003, and £1,555,612, representing repayment of VAT on management fees for the period 2004 to 2007.) These sums have been allocated to revenue and capital in accordance with the Company's accounting policy for the periods in which the VAT was charged. In addition, the Company has accrued for a payment to it of £1,348,111, relating to simple interest on all repayments of VAT to date for the periods 1990 to 1996 and 2001 to 2007; this sum has been allocated 100% to the revenue account. The investment company industry is taking various steps to seek to recover VAT in respect of the period 1997 to 2000, and is also seeking compound interest on all VAT repaid. These initiatives have been resisted by HMRC, and it is not possible to predict whether the Company will be entitled to any further VAT or interest repayments in the future.

 

Alternative Investment Fund Manager (AIFM) Directive

The final version of the AIFM Directive was agreed in October 2010. Its purpose is to introduce a new authorisation and supervisory regime for all alternative investment fund managers managing alternative investment funds within the European Union, which includes investment trusts. The Board has supported the efforts of the Association of Investment Companies to mitigate the more onerous obligations proposed in the draft legislation. It is pleased that the final version has accepted most of the points made by the AIC though there are still some uncertainties, particularly related to the role envisaged for "Depositaries".

 

Risks and Uncertainties

The Board has identified a number of key risks that affect its business:

 

-      Resource risk - like most other investment trusts, the Company has no employees. The Company therefore 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 stock market 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.

-      Discount volatility - investment trust shares tend to trade at a discount to their underlying net asset values, although they can also trade at a premium. Discounts and premia can fluctuate considerably. In order to seek to reduce the impact of such fluctuations, where the shares are trading at a discount, the Company has operated a share buy-back programme for a number of years. If the shares trade at a premium, the Company has the authority to issue new shares or re-issue of shares from treasury. Whilst these measures seek to mitigate volatility, it cannot be guaranteed that they will do so.

-      Foreign currency risk - a proportion of the Company's investment portfolio is invested in overseas securities and the value of the Company's investments and the income derived from them can, therefore, be affected by movements in foreign exchange rates. In addition, the earnings of the Company's other investments may also be affected by currency movements which, indirectly, could have an impact on the Company's performance.

       Regulatory risk - the Company operates in a complex regulatory environment and faces a number of related risks. A breach of Section 1158 of the Corporation Tax Act 2010 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 Act, 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.

 

 

Going Concern

The factors which have an impact on Going Concern are set out in the Going Concern section of the Directors' Report in the Company's Annual Report and Accounts to 30 June 2010. As at 31 December 2010, there have been no significant changes to these factors except that the borrowing facilities of £60 million which were committed to the Company until 29 September 2010 have been replaced by new borrowing facilities of £60 million which are committed to the Company until 29 September 2011. The Company will, at the appropriate time, open negotiations for a borrowing facility to follow on from the expiry of the present borrowing facility. The Directors are mindful of the principal risks and uncertainties disclosed above, and, having reviewed forecasts detailing revenue and liabilities, they believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future. Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the Financial Statements.

 

Statement of Directors' Responsibilities

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 their impact on the financial statements together with a description of the risks and uncertainties for the remaining 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 2010 comprises the Interim Board Report, the Statement of Directors' Responsibilities 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

15 February 2011

 

 



MURRAY INCOME TRUST PLC

INCOME STATEMENT (UNAUDITED)

 

 



Six months ended



31 December 2010



(unaudited)



Revenue

Capital

Total


Notes

£'000

£'000

£'000

Gains on investments


-

66,526

66,526

Currency (losses)/gains


-

(53)

(53)

Investment income

3

6,325

-

6,325

Interest receivable

3

1,429

-

1,429

Other income

3

1,373

-

1,373

Investment management fees


 (533)

(533)

(1,066)

Recoverable VAT on management fees


734

742

1,476

Administrative expenses


(448)

-

(448)



_________

_________

_________

Net return before finance costs and taxation


8,880

66,682

75,562






Finance costs


 (258)

(258)

(516)



_________

_________

_________

Net return before taxation


8,622

66,424

75,046






Taxation

4

(24)

-

(24)



_________

_________

_________

Return on ordinary activities after taxation


8,598

66,424

75,022



_________

_________

_________

Return per Ordinary share (pence):

5

13.3

102.7

116.0



_________

_________

_________


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

10,997

-

10,997



_________

_________

_________


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



MURRAY INCOME TRUST PLC

INCOME STATEMENT (UNAUDITED)

 

 



Six months ended



31 December 2009



(unaudited)



Revenue

Capital

Total


Notes

£'000

£'000

£'000

Gains on investments


-

87,322

87,322

Currency (losses)/gains


-

-

-

Investment income

3

6,107

-

6,107

Interest receivable

3

21

-

21

Other income

3

349

-

349

Investment management fees


(479)

(479)

(958)

Recoverable VAT on management fees


-

-

-

Administrative expenses


 (423)

-

(423)



_________

_________

_________

Net return before finance costs and taxation


5,575

86,843

92,418






Finance costs


(159)

(159)

(318)



_________

_________

_________

Net return before taxation


5,416

86,684

92,100






Taxation

4

-

-

-



_________

_________

_________

Return on ordinary activities after taxation


5,416

86,684

92,100



_________

_________

_________

Return per Ordinary share (pence):

5

8.4

134.0

142.4



_________

_________

_________






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

10,836

-

10,836



_________

_________

_________






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



MURRAY INCOME TRUST PLC

INCOME STATEMENT  (UNAUDITED)

 

 



Year ended



30 June 2010



(audited)



Revenue

Capital

Total


Notes

£'000

£'000

£'000

Gains on investments


-

62,285

62,285

Currency (losses)/gains


-

30

30

Investment income

3

16,826

-

         16,826

Interest receivable

3

83

-

83

Other income

3

1,348

-

1,348

Investment management fees


 (988)

(988)

(1,976)

Recoverable VAT on management fees


409

409

818

Administrative expenses


(879)

-

(879)



_________

_________

_________

Net return before finance costs and taxation


16,799

61,736

78,535






Finance costs


(375)

(375)

(750)



_________

_________

_________

Net return before taxation


16,424

61,361

77,785






Taxation

4

-

-

-

Return on ordinary activities after taxation


16,424

61,361

77,785



_________

_________

_________

Return per Ordinary share (pence):

5

25.4

94.8

120.2



_________

_________

_________


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

17,930

-

17,930



_________

_________

_________


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



2010

2009

2010



(unaudited)

(unaudited)

(audited)


Notes

£'000

£'000

£'000

Non-current assets





Investments at fair value through profit or loss


447,218

392,223

352,285






Current assets





Loans and receivables


3,132

1,852

2,883

Cash and short-term deposits


17,321

17,353

35,037



_________

_________

_________



20,453

19,205

37,920






Creditors: amounts falling due within one year





Other payables


(4,221)

(594)

(780)

Bank loans


(45,000)

(35,000)

(35,000)



_________

_________

_________

Net current (liabilities)/assets


(28,768)

(16,389)

2,140



_________

_________

_________

Net assets


418,450

375,834

354,425



_________

_________

_________






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

6

366,499

325,398

 300,075

Revenue reserve


22,395

20,880

24,794



_________

_________

_________

Equity shareholders' funds


418,450

375,834

354,425



_________

_________

_________

Net asset value per Ordinary share (pence):

7

646.9

581.0

547.9



_________

_________

_________



MURRAY INCOME TRUST PLC

RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS (UNAUDITED)

 

 

Six months ended 31 December 2010 (unaudited)









Share

Capital





Share

premium

redemption

Capital

Revenue



capital

account

reserve

reserve

reserve

Total


£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 June 2010

16,604

7,955

4,997

300,075

24,794

354,425

Return on ordinary activities after taxation

-

-

-

66,424

8,598

75,022

Dividends paid

-

-

-

-

(10,997)

(10,997)


________

________

________

________

________

________

Balance at 31 December 2010

16,604

7,955

4,997

366,499

22,395

418,450


________

________

________

________

________

________








Six months ended 31 December 2009 (unaudited)









Share

Capital





Share

premium

redemption

Capital

Revenue



capital

account

reserve

reserve

reserve

Total


£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 June 2009

16,604

7,955

4,997

238,714

26,300

294,570

Return on ordinary activities after taxation

-

-

-

86,684

5,416

92,100

Dividends paid

-

-

-

-

(10,836)

(10,836)


________

________

________

________

________

________

Balance at 31 December 2009

16,604

7,955

4,997

325,398

20,880

375,834


________

________

________

________

________

________








Year ended 30 June 2010 (audited)









Share

Capital





Share

premium

redemption

Capital

Revenue



capital

account

reserve

reserve

reserve

Total


£'000

£'000

£'000

£'000

£'000

£'000

Balance at 30 June 2009

16,604

7,955

4,997

238,714

26,300

294,570

Return on ordinary activities after taxation

-

-

-

61,361

16,424

77,785

Dividends paid

-

-

-

-

(17,930)

(17,930)


________

________

________

________

________

________

Balance at 30 June 2010

16,604

7,955

4,997

300,075

24,794

354,425


________

________

________

________

________

________



MURRAY INCOME TRUST PLC

CASH FLOW STATEMENT (UNAUDITED)

 

 


Six months ended

Six months ended

Year
ended


31 December 2010

31 December 2009

30 June
2010


(unaudited)

(unaudited)

(audited)


£'000

£'000

£'000

Net return before finance costs and taxation

75,562

92,418

78,535

Adjustments for:




Gains on investments

(66,526)

(87,322)

(62,285)

Currency losses/(gains)

53

-

(30)

Non cash stock dividend

(59)

-

(163)

Overseas withholding tax suffered

(24)

-

-

(Increase)/decrease in accrued income

(245)

1,068

(7)

(Increase)/decrease in prepayments

(4)

(5)

39

Increase in accruals

240

157

342


_________

_________

_________

Net cash inflow from operating activities

8,997

6,316

16,431





Servicing of finance




Interest paid

(576)

(138)

(569)


_________

_________

_________

Net cash outflow from servicing of finance

(576)

(138)

 (569)





Financial investment




Purchases of investments

(62,134)

(29,754)

 (55,940)

Sales of investments

37,047

38,237

79,487


_________

_________

_________

Net cash (outflow)/inflow from financial investment

(25,087)

8,483

23,547





Equity dividends paid

(10,997)

(10,836)

(17,930)





Financing




Drawdown of loans

10,000

-

-


_________

_________

_________

Net cash inflow from financing

10,000

-

-


_________

_________

_________

Net (decrease)/increase in cash

(17,663)

3,825

21,479


_________

_________

_________



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 & Venture Capital Trusts' (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 2010

31 December 2009

30 June 2010



 £'000

 £'000

 £'000


2009 third interim dividend - 5.50p

-

3,558

3,558


2009 final dividend - 11.25p

-

7,278

 7,278


2010 first interim dividend - 5.50p

-

-

 3,558


2010 second interim dividend - 5.50p

-

-

 3,558


2010 third interim dividend - 5.50p

3,558

-

-


2010 final dividend - 11.50p

7,439

-

-


Return of unclaimed dividends

-

-

(22)



_________

_________

_________



10,997

10,836

17,930



_________

_________

_________

 



Six months ended

Six months ended

Year
ended



31 December 2010

31 December 2009

30 June 2010

3.

Investment income

£'000

£'000

£'000


UK dividend income

5,274

5,511

14,687


Overseas and unfranked income

538

-

-


Stock dividends

59

-

163


Bond interest

454

596

1,976



_________

_________

_________



6,325

6,107

16,826



_________

_________

_________


Interest receivable





Deposit interest

81

21

83


Interest on VAT refund

1,348

-

-



_________

_________

_________



1,429

21

83



_________

_________

_________








Six months ended

Six months ended

Year
ended



31 December 2010

31 December 2009

30 June 2010


Other income

£'000

£'000

£'000


Underwriting commission

163

114

114


Traded option premiums

1,210

235

1,234



_________

_________

_________



1,373

349

1,348



_________

_________

_________

 

4.

Taxation


The taxation charge for the period represents withholding tax suffered on overseas dividend income.

 



 Six months ended

 Six months ended

 Year ended



31 December 2010

31 December 2009

30 June 2010

5.

Return per share

 p

 p

 p


Revenue return

13.3

8.4

25.4


Capital return

102.7

134.0

94.8



_________

_________

_________


Total return

116.0

142.4

120.2



_________

_________

_________







The figures are based on the following attributable amounts: 








 Six months ended

 Six months ended

 Year ended



31 December 2010

31 December 2009

30 June 2010



 £'000

 £'000

 £'000


Revenue return

8,598

5,416

16,424


Capital return

66,424

86,684

61,361



_________

_________

_________


Total return

75,022

92,100

77,785



_________

_________

_________


Weighted average number of Ordinary shares in issue

64,689,458

64,689,458

64,689,458



____________

____________

__________

 

6.

Capital reserve


The capital reserve reflected in the Balance Sheet at 31 December 2010 includes gains of £100,023,000 (31 December 2009 - £70,452,000; 30 June 2010 - £44,688,000) which relate to the revaluation of investments held at the reporting date.

 



As at

As at

As at

7.

Net asset value per share

31 December 2010

31 December 2009

30 June 2010


Attributable net assets (£'000)

418,450

375,834

354,425


Number of Ordinary shares in issue

64,689,458

64,689,458

64,689,458


Net asset value per Ordinary share (p)

646.9

581.0

547.9

 

8.

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 investments in the Income Statement. The total costs were as follows:








Six months ended

Six months ended

Year
ended



31 December 2010

31 December 2009

30 June 2010



£'000

£'000

£'000


Purchases

273

85

218


Sales

20

33

58



_________

_________

_________



293

118

276



_________

_________

_________

 

9.

The financial information contained in this Half-Yearly Financial Report does not constitute statutory accounts as defined in Section 434-436 of the Companies Act 2006. The financial information for the six months ended 31 December 2010 and 31 December 2009 has not been audited.




The information for the year ended 30 June 2010 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.

 

10.

This Half-Yearly Financial Report was approved by the Board on 15 February 2011.



11.

Copies of the Company's report for the half-year ended 31 December 2010 will be posted to shareholders in February 2011 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 2010

 

 



Valuation

Total assets

Investment

Sector

£'000

%

British American Tobacco

Tobacco

23,280

5.0

Centrica

Gas, Water & Multi-utilities

23,046

5.0

Royal Dutch Shell ('B' Shares)

Oil & Gas Producers

22,842

4.9

Vodafone

Mobile Telecommunications

22,401

4.8

HSBC

Banks

19,628

4.2

BP

Oil & Gas Producers

19,087

4.1

GlaxoSmithKline

Pharmaceuticals & Biotechnology

18,476

4.0

AstraZeneca

Pharmaceuticals & Biotechnology

17,444

3.8

Unilever

Food Producers

15,508

3.3

Tesco

Food & Drug Retailers

14,833

3.2





Top ten investments


196,545

42.3

National Grid

Gas, Water & Multi-utilities

14,577

3.1

Aviva

Life Insurance

13,106

2.8

BHP Billiton

Mining

12,092

2.6

Pearson 

Media

11,794

2.5

ENI

Oil & Gas Producers

11,578

2.5

Provident Financial

General Financial

11,292

2.4

Morrison (WM) Supermarkets

Food & Drug Retailers

10,934

2.4

Close Bros

General Financial

10,559

2.3

Standard Chartered

Banks

10,454

2.3

Aberforth Smaller Companies Trust

Equity Investment Instruments

9,045

2.0





Top twenty investments


311,976

67.2

Associated British Foods

Food Producers

9,011

1.9

Cobham

Aerospace & Defence

8,950

1.9

Roche 

Pharmaceuticals & Biotechnology

8,168

1.8

Imperial Tobacco

Tobacco

8,167

1.8

Land Securities

Real Estate

8,104

1.8

AMEC

Oil Equipment, Service & Distribution

8,096

1.8

John Wood Group

Oil Equipment, Service & Distribution

7,731

1.7

Whitbread

Travel & Leisure

7,679

1.7

Prudential

Life Insurance

7,148

1.5

Daily Mail & General Trust

Media

7,089

1.5





Top thirty investments


392,119

84.6

GDF Suez

Gas, Water & Multi-utilities

6,853

1.5

Sage Group

Software & Computer Services

6,562

1.4

Rio Tinto

Mining

5,927

1.3

Rolls Royce

Aerospace & Defence

5,728

1.2

Mothercare

General Retailers

5,658

1.2

Millennium & Copthorne Hotels 

Travel & Leisure

4,748

1.0

BBA Aviation

Industrial Transportation

4,521

1.0

GKN

Automobiles & Parts

4,048

0.9

Persimmon

Household Goods & Home Construction

4,018

0.9

Dunedin Smaller Companies Investment Trust

Equity Investment Instruments

2,750

0.6





Top forty investments


442,932

95.6

Weir Group

Industrial Engineering

2,367

0.5

Barclays Bank 14% Reverse Capital Instrument

Banks

1,919

0.4

Total investments


447,218

96.5



___________

___________

Net current assets{A}


16,232

3.5



___________

___________

Total assets


463,450

100.0



___________

___________


{A} excludes bank loan of £45,000,000.

 


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