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Henderson European (HEFT)

  Print      Mail a friend       Annual reports

Friday 19 May, 2017

Henderson European

Half-year Report

RNS Number : 5910F
Henderson European Focus Trust PLC
19 May 2017
 

                                                                                                                               

HENDERSON EUROPEAN FOCUS TRUST PLC

Unaudited results for the Half Year ended 31 March 2017

 

This announcement contains regulated information

 

Investment objective

The Company seeks to maximise total return from a focused portfolio of listed stocks, mainly in Continental Europe.

 

Performance highlights for the six months ended 31 March 2017

•      Net asset value ('NAV') total return1 (including dividends reinvested) of 12.7% compared to a total return from the benchmark2 of 12.6%

•      Share price3 total return (including dividends reinvested) of 27.1%

•      Interim dividend of 9.00p per share declared (2016: 7.50p)

•      Premium4 of 2.2% at 31 March 2017 compared with a sector average discount of 5.8%5

 

Total return performance to 31 March 2017 (including dividends reinvested and excluding transaction costs)

 

 

6 months

%

1 year

%

3 years

%

5 years

%

10 years

 %

NAV1

12.7

27.7

40.2

117.6

161.3

Benchmark2

12.6

27.9

31.7

82.2

83.1

Average sector NAV6

11.1

25.5

35.1

98.1

123.3

Share price3

27.1

40.1

46.2

162.1

181.2

Average sector share price

15.9

25.9

34.0

110.1

124.0

 

1 Net asset value total return per ordinary share with income reinvested for 6 months, 1, 3 and 5 years and capital NAV plus income reinvested for 10 years. These figures are preliminary estimates made by Morningstar Direct and do not reflect any subsequent change in the period end NAVs reflected in these results

2 FTSE World Europe ex UK Index on a total return basis in sterling terms

3 Share price total return using mid-market closing price

4 Calculated using published daily NAVs including current year revenue

5 Sector discount is sourced from the AIC

6 The sector is the AIC Europe sector

Sources: Morningstar Direct, Datastream and Henderson

 

Financial highlights

 

At 31 March 2017

At 30 September 2016

Shareholders' funds

 

 

Net assets attributable to ordinary

shareholders  (£'000)

 

263,253

 

237,551

Net asset value ('NAV') per ordinary share

1,277.88p

1,153.12p

Mid-market share price per ordinary share

1,306.00p

1,045.50p

Gearing at period end

8.9%

6.1%

 

 

 

Half year ended

31 March 2017

Year ended

30 September 2016

Total return to equity shareholders

 

 

Revenue return after taxation (£'000)

Capital return after taxation (£'000)

1,792

27,804

5,507

34,679

Total return

29,596

40,186

Total return per ordinary share

 

 

Revenue

8.70p

26.85p

Capital

134.96p

169.05p

Total return

143.66p

195.90p

 

 

 

INTERIM MANAGEMENT REPORT

 

CHAIRMAN'S STATEMENT

 

Performance

Over the half year ended 31 March 2017 the net asset value ('NAV') per ordinary share total return was 12.7%, with the benchmark, the FTSE World Europe ex UK Index in sterling terms, total return only narrowly less at 12.6%. Over the same period, the share price total return was a solid 27.1%, reflecting a significant narrowing of the discount on the Company's shares to a modest premium at the period end.

 

The recent premium has enabled the Company to issue a number of shares totalling 145,000, raising £1,896,000 in the intervening period from the half year to 18 May 2017.

 

Revenue and dividend

The Board has declared an interim dividend of 9.00p per ordinary share (2016: 7.50p). This is an increase of 20% over the prior year interim dividend and is intended to maintain an appropriate balance between the interim and final dividends. The dividend will be paid on 29 June 2017 to shareholders on the register on 2 June 2017. The shares will be marked ex-dividend on 1 June 2017.

 

Outlook

Political noise has begun to feel like a constant for the investor in European equities. It has been particularly so over the past six months, as we make our way through a series of elections. Your portfolio continues to be managed in a way that recognises that no value is added by a Fund Manager attempting to predict the outcomes of such events: even less so markets' reactions to such outcomes.

 

The evidence points to a late stage bull market. Your Fund Manager has positioned the portfolio accordingly, notably via a tilt away from lower volatility, so called 'growth stocks' and toward 'value'. While such labels are always in the eye of the beholder, it is instructive to note that a combination of the market failing to recognise value, together with ultra-easy money and a mature bull market, often provide fertile ground for corporate activity. In recent months we have seen this within the portfolio as PPG of the US has made a number of takeover bids for Akzo Nobel. We anticipate further M&A activity before this particular bull market blows itself out.

 

 

Rodney Dennis

Chairman

 

 

FUND MANAGER'S REPORT

 

Our decision to tilt the portfolio away from low volatility 'growth stocks' towards the 'value' end of the market has largely benefitted the Company in the past six months. It is never easy owning European banks but our substantially increased allocation to the sector in the second half of 2016 proved timely. Nevertheless, the sector remains at the mercy of the shape of the interest rate curve. Thus, we continue to monitor inflation expectations as a key input to our banks positioning.

 

Once again the portfolio has benefitted from its selection of small and mid-cap holdings. Our two Italian names, IMA and Interpump have been particularly rewarding, producing share price gains of 29% and 44% respectively. Tessenderlo Chemie, a Belgian chemicals company and long term portfolio holding, continues to fare well, with a share price rise of 25% over the period. Its Belgian neighbour, Ackermans & Van Haaren, whose primary business is in dredging services also produced a 23% share price gain.

 

Mention is made of these names to highlight, again, that the Company lends itself to an all cap approach and that small-mid cap investing will remain an integral part of the strategy.

 

 

John Bennett

Fund Manager

 

 

Principal Risks and Uncertainties

 

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

 

·        Market risk;

·        Gearing;

·        Other financial risks;

·        Operational risks; and

·        Key man risk

 

Information on these risks and how they are managed is given in the Annual Report to 30 September 2016. In the view of the Board these principal risks and uncertainties were unchanged over the last six months and are as applicable to the remaining six months of the financial year as they were to the six months under review.

 

Related Party Transactions

 

The Company's transactions with related parties in the period were with the Directors and Henderson. There have been no material transactions between the Company and its Directors during the period other than amounts paid to them in respect of expenses and remuneration for which there were no outstanding amounts payable at the period end. In relation to the provision of services by Henderson, other than fees payable by the Company in the ordinary course of business and the provision of sales and marketing services there have been no transactions with Henderson affecting the financial position of the Company during the period under review.

 

Statement of Directors’ Responsibilities

 

The Directors confirm that, to the best of their knowledge:

 

(a)     the financial statements for the half year ended 31 March 2017 have been prepared in accordance with 'FRS 104 Interim Financial Reporting';

 

(b)     the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

 

(c)     the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

 

 

For and on behalf of the Board

Rodney Dennis

Chairman


 

 

Principal Investments as at 31 March 2017

Company

 

Sector

Country of listing

Valuation £'000

 

% of portfolio

Roche

 

Pharmaceuticals & Biotechnology

Switzerland

 11,188

3.9

Nestlé

 

Food Producers

Switzerland

 11,029

3.9

Novartis

 

Pharmaceuticals & Biotechnology

Switzerland

 10,657

3.7

RELX

 

Media

Netherlands

 8,530

3.0

Tessenderlo Chemie

 

Chemicals

Belgium

 8,105

2.8

Bayer

 

Chemicals

Germany

 7,915

2.8

Com Hem

 

Fixed Line Telecommunications

Sweden

 7,734

2.7

GALP Energia

 

Oil & Gas Producers

Portugal

 7,421

2.6

SAP

 

Software & Computer Services

Germany

 7,138

2.5

ING

 

Banks

Netherlands

 6,965

2.4

10 largest

 

 

 

 86,682

 30.3

 

 

 

 

 

 

Continental

 

Automobiles & Parts

Germany

 6,932

2.4

Autoliv

 

Automobiles & Parts

Sweden

 6,759

2.4

CNH Industrial

 

Industrial Engineering

Italy

 6,457

2.3

Henkel

 

Household Goods & Home Construction

Germany

 6,114

2.1

KBC

 

Banks

Belgium

 5,919

2.1

Bankinter

 

Banks

Spain

 5,818

2.0

Fresenius

 

Health Care Equipment & Services

Germany

 5,584

1.9

Nordea

 

Banks

Sweden

 5,471

1.9

Svenska Handelsbank

 

Banks

Sweden

 5,462

1.9

Societe Generale

 

Banks

France

 5,219

1.8

20 largest

 

 

 146,417

 51.1

 

 

 

 

 

 

Siemens

 

General Industrials

Germany

 4,798

1.7

ABN Amro

 

Banks

Netherlands

 4,656

1.6

Koninklijke Philips

 

Health Care Equipment & Services

Netherlands

 4,506

1.6

Koninklijke Ahold Delhaize

 

 

Food & Drug Retailers

 

Netherlands

 

 4,281

 

1.5

IMCD

 

Chemicals

Netherlands

 4,259

1.5

Ackermans & Van Haaren

 

 

Financial Services

 

Belgium

 

 4,213

 

1.5

Volvo

 

Industrial Engineering

Sweden

 4,173

1.5

Elekta

 

Health Care Equipment & Services

Sweden

 4,159

1.4

Unilever

 

Personal Goods

United Kingdom

 4,125

1.4

Gamesa

 

Alternative Energy

Spain

 4,113

1.4

30 largest

 

      189,700

                66.2

Other listed investments (29 stocks)

 

       96,994

33.8

Total investments at fair value

 

      286,694

          100.0

 

 

 

 

 

 

Geographical Exposure (As a percentage of the portfolio excluding cash)

 

 

31 March 2017

%

31 March 2016

%

Germany

18.3

20.2

Netherlands

14.1

5.7

Sweden

13.2

13.9

Switzerland

11.5

15.6

France

11.1

7.7

Spain

7.1

4.0

Belgium

6.4

7.2

Italy

5.3

4.7

Finland

3.3

3.1

Denmark

3.1

6.3

Norway

2.6

4.8

Portugal

2.6

3.7

United Kingdom

1.4

1.9

Ireland

-

1.2

 

100.0

100.0

 

Sector Exposure (As a percentage of the portfolio excluding cash)

 

 

31 March 2017

%

31 March 2016

%

Financials

23.5

15.1

Consumer goods

15.7

18.9

Industrials

15.4

17.7

Health Care

14.8

17.2

Basic materials

11.9

11.0

Oil & gas

6.5

4.7

Consumer services

5.6

8.0

Telecommunications

4.1

6.4

Technology

2.5

1.0

 

100.0

100.0

 

 

Condensed Income Statement

 

 

(Unaudited)

Half year ended

31 March 2017

(Unaudited)

Half year ended

31 March 2016

(Audited)

Year ended

30 September 2016

 

Revenue

return £'000

Capital

return £'000

 

Total £'000

Revenue

return £'000

Capital

return £'000

 

Total £'000

Revenue

return £'000

Capital

return £'000

 

Total £'000

 

 

 

 

 

 

 

 

 

 

Gains on investments held at fair value through profit or loss

-

28,625

28,625

-

12,739

12,739

-

37,048

37,048

 

 

 

 

 

 

 

 

 

 

Exchange gain/(loss) on currency transactions

-

25

25

-

(1,431)

(1,431)

-

(906)

(906)

 

 

 

 

 

 

 

 

 

 

Income from investments (note 2)

2,632

-

2,632

2,259

-

2,259

7,139

-

7,139

 

 

 

 

 

 

 

 

 

 

Other income (note 2)

-

-

-

1

-

1

1

-

1

Gross revenue and capital gains

2,632

28,650

31,282

2,260

11,308

13,568

7,140

36,142

43,282

 

 

 

 

 

 

 

 

 

 

Management and performance fees (note 6)

(208)

(625)

(833)

(173)

(520)

(693)

(359)

(1,077)

(1,436)

Other fees and expenses

(270)

-

(270)

(235)

-

(235)

(472)

-

(472)

Net return on ordinary activities before finance costs and taxation

2,154

28,025

30,179

1,852

10,788

12,640

6,309

35,065

41,374

 

 

 

 

 

 

 

 

 

 

Finance costs

(71)

(221)

(292)

(62)

(186)

(248)

(129)

(386)

(515)

Net return on ordinary activities before taxation

2,083

27,804

29,887

1,790

10,602

12,392

6,180

34,679

40,859

 

 

 

 

 

 

 

 

 

 

Taxation on net return on ordinary activities

(291)

-

(291)

(226)

-

(226)

(673)

-

(673)

Net return on ordinary activities after taxation

1,792

27,804

29,596

1,564

10,602

12,166

5,507

34,679

40,186

Return per ordinary share (note 3)

8.70p

134.96p

 

143.66p

7.66p

51.90p

59.56p

26.85p

169.05p

195.90p

 

 

The total columns of this statement represent the Income Statement of the Company prepared in accordance with FRS 104. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All revenue and capital items in the above statement derive from continuing operations. The Company had no recognised gains or losses other than those disclosed in the Income Statement and the Statement of Changes in Equity.    

 

The accompanying notes are an integral part of the condensed financial statements.         

 

 

Condensed Statement of Changes in Equity

 

Half year ended 31 March 2017
(Unaudited)

Called-up
share

capital

£'000

Special distributable reserve

£'000

 
Share premium account £'000

Merger reserve £'000

Capital redemption reserve

£'000

 
 
Capital reserve £'000
Total

£'000

At 30 September 2016

10,371

25,846

30,074

61,344

9,421

89,306

11,189

237,551

Net return on ordinary activities after taxation

-

-

 

-

-

-

 

27,804

1,792

29,596

Shares issued

-

-

-

-

-

-

-

-

Share issue cost

-

-

-

-

-

-

-

-

Ordinary dividend paid

-

-

        -

-

-

-

(3,894)

(3,894)

At 31 March 2017

10,371

25,846

30,074

61,344

9,421

117,110

9,087

263,253

Half year ended 31 March 2016
(Unaudited)
Called-up
share

capital

£'000

 
 
Special distributable reserve
£'000
 

 

 

Share premium account £'000
 
 
 
Merger reserve £'000
Capital redemption reserve

£'000

 

 

 

Capital reserve £'000

 

 
Total

£'000

At 30 September 2015

9,996

25,846

22,820

61,344

9,421

54,627

10,860

194,914

Net return on ordinary activities after taxation

-

-

 

-

-

-

 

10,602

1,564

12,166

Shares issued

375

-

7,260

-

-

-

-

7,635

Share issue cost

-

-

(7)

-

-

-

-

(7)

Ordinary dividend paid

-

-

-

-

-

-

(3,633)

(3,633)

At 31 March 2016

10,371

25,846

30,073

61,344

9,421

65,229

8,791

211,075

Year ended 30 September 2016
(Audited)
 
 
Called-up
share

capital

£'000

Special distributable reserve
£'000

 

 

 

Share premium account £'000
Merger reserve £'000
Capital redemption reserve

£'000

 

 

 

 
Capital reserve £'000
 
Revenue reserve

£'000

 

 
Total

£'000

At 30 September 2015

9,996

25,846

22,820

61,344

9,421

54,627

10,860

194,914

Net return on ordinary activities after taxation

-

-

-

-

-

34,679

5,507

40,186

Shares issued

375

-

7,260

-

-

-

-

7,635

Share issue cost

-

-

(6)

-

-

-

-

(6)

Ordinary dividend paid

-

-

-

-

-

-

(5,178)

At 30 September 2016

10,371

25,846

30,074

61,344

9,421

89,306

11,189

237,551

 

The accompanying notes are integral part of the condensed financial statements.

 

 

Condensed Statement of Financial Position

 

 

(Unaudited)

31 March

2017

            £'000

(Unaudited)

31 March

2016

            £'000

(Audited)

30 September

2016

            £'000

Fixed assets

 

 

 

Investments held at fair value through profit or loss

286,694

227,160

252,102

 

 

 

 

Current assets

 

 

 

Debtors

900

1,466

7,969

Cash at bank

14,370

22,185

16,575

 

15,270

23,651

24,544

 

 

 

 

Creditors: amounts falling due within one year

(38,711)

(39,736)

(39,095)

 

 

 

 

Net current liabilities

(23,441)

(16,085)

(14,551)

 

 

 

 

Net assets

263,253

211,075

237,551

 

 

 

 

Capital and reserves

 

 

 

Called up share capital

10,371

10,371

10,371

Special distributable reserve

25,846

25,846

25,846

Share premium account

30,074

30,073

30,074

Merger reserve

61,344

61,344

61,344

Capital redemption reserve

9,421

9,421

9,421

Capital reserve

117,110

65,229

89,306

Revenue reserve

9,087

8,791

11,189

Shareholders' funds

263,253

211,075

237,551

 

 

 

 

Net asset value per ordinary share (note 5)

1,277.88p

1,024.60p

1,153.12p

 

The accompanying notes are an integral part of the condensed financial statements.

 

 

Condensed Cash Flow Statement

 

 

(Unaudited)

Half year ended

31 March

2017

£'000

(Unaudited)

Half year ended

31 March

2016

£'000

(Audited)

Year ended

30 September

2016

£'000

Cash flows from operating activities

 

 

 

Net return on ordinary activities before taxation

29,887

12,392

40,859

Add back: finance costs

292

248

515

Less gains on investments held at fair value through profit or loss

(28,625)

(12,739)

(37,048)

Stock dividend

-

-

(274)

Taxation paid

(291)

(226)

(673)

Increase in debtors

(343)

(103)

(274)

Increase/(decrease) in creditors

12

(942)

(1,173)

Net cash inflow/(outflow) from operating activities

932

(1,370)

1,932

Cash flows from investing activities

 

 

 

Sales of investments held at fair value through profit or loss

173,002

119,075

239,936

Purchases of investments held at fair value through profit or loss

(171,754)

(122,149)

(275,451)

Net cash generated/(used) in investing activities

1,248

(3,074)

(20,502)

Cash flows from financing activities

 

 

 

Issue of new ordinary shares

-

7,635

7,635

Share issue expenses

-

(127)

(126)

Equity dividends paid

(3,894)

(3,633)

(5,178)

Repayment of bank overdraft

(374)

(2,041)

(42)

Interest paid

(117)

(244)

(566)

Net cash (used)/generated in financing activities

(4,385)

1,590

1,723

Net decrease in cash and cash equivalents

(2,205)

(2,854)

(8,464)

 

 

 

 

Cash and cash equivalents at beginning of period

16,575

25,039

25,039

Cash and cash equivalents at end of period

14,370

22,185

16,575

Comprising:

 

 

 

Cash at bank

14,370

22,185

16,575

 

14,370

22,185

16,575

 

The accompanying notes are an integral part of these financial statements

 

Notes

 

1.

Accounting policies

 

The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, issued in March 2015, the revised reporting standard for half year reporting that was issued following the introduction of FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, which is effective for periods commencing on or after 1 January 2015. The Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts', in accordance with which the Company's financial statements are also prepared, was re-issued by the Association of Investment Companies in November 2014 and updated in January 2017 with consequential amendments.

 

The condensed set of financial statements has not been audited nor reviewed by the Company's auditor.

 

 

2.

Income from investments

 

(Unaudited)

Half year ended

31 March 2017

£'000

(Unaudited)

Half year ended

31 March 2016

£'000

 

(Audited)

Year ended

30 September 2016

£'000

Listed investments:

 

 

 

Overseas dividends

2,632

2,098

 6,618

UK dividends

-

161

247

Stock dividends

-

-

274

 

2,632

2,259

7,139

Other income:

 

 

 

Deposit interest

-

1

1

 

 

 

 

 

 

3.

Return per ordinary share

 

 

 

 

 

 

(Unaudited)

Half year ended

31 March 2017

£'000

(Unaudited)

Half year ended

31 March 2016

£'000

(Audited)

Year ended

30 September 2016

 £'000

 

 

The return per ordinary share is based on the following figures:

 

 

 

 

 

Net revenue return

1,792

1,564

5,507

 

 

Net capital return

27,804

10,602

34,679

 

 

Net total return

29,596

12,166

40,186

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares in issue for each period

20,600,761

20,426,171

20,513,466

 

 

 

 

 

 

 

 

Revenue return per ordinary share

8.70p

7.66p

26.85p

 

 

Capital return per ordinary share

134.96p

51.90p

169.05p

 

 

 

 

 

 

 

 

Total return per ordinary share

143.66p

59.56p

195.90p

 

 

 

 

 

 

 

 

The Company does not have any dilutive securities, therefore, the basic and diluted returns per share are the same.

 

 

4.

Called-up share capital

 

 

During the half year ended 31 March 2017, no ordinary shares were issued (half year ended 31 March 2016: 750,000 ordinary shares issued for a total proceeds of £7,635,000; year ended 30 September 2016: 750,000 ordinary shares were issued for total proceeds of £7,635,000).

 

At 31 March 2017 the Company held 140,730 ordinary shares in treasury (at 31 March 2016: 140,730 and 30 September 2016: 140,730).

 

 

5.

Net asset value per ordinary share

 

 

The net asset value per ordinary share is based on the 20,600,761 ordinary shares in issue at 31 March 2017 (half year ended 31 March 2016: 20,600,761; year ended 30 September 2016: 20,600,761). 

 

 

 

 

6.

Management and performance fees

Henderson Investment Funds Limited ('HIFL') is appointed to act as the Company's Alternative Investment Fund Manager.  HIFL delegates investment management services to Henderson Global Investors Limited.  References to Henderson within these results refer to the services provided by both entities.

 

Henderson receives a fee of 0.65% per annum on the value of the Company's net assets, calculated quarterly in arrears. In determining the net assets on which the management fee is calculated, the value of any securities held by the Company in collective investment schemes managed by Henderson are excluded. An additional management fee, based on performance, of up to 0.65% per annum is payable if Henderson meets certain targets for the year. Full details are included in the Annual Report to 30 September 2016. A performance fee of £nil has been accrued as at 31 March 2017 (31 March 2016: nil and 30 September 2016: nil).

 

Management fees and finance costs are allocated 25% to revenue and 75% to capital in the Income Statement.  The performance fee (when payable) is allocated 100% to capital. Tax relief in respect of such allocations is credited to capital to the extent that such relief can be utilised in reducing the Company's overall liability to taxation.

 

 

7.

Investments held at fair value through profit of loss

 

The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on the valuation techniques used and are defined as follows under FRS 102:

 

Level 1: valued using quoted prices in active markets for identical assets

 

Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in Level 1

 

Level 3: Valued by reference to valuation techniques using inputs that are not based on observable market data

 

Financial assets held at fair value through profit or loss at 31 March 2017

Level 1

£'000

Level 2

£'000

Level 3

£'000

Total

£'000

Equity investments

286,694

-

-

286,694

Total financial assets carried at fair value

286,694

-

-

286,694

 

Financial assets held at fair value through profit or loss at 31 March 2016

Level 1

£'000

Level 2

£'000

Level 3

£'000

Total

£'000

Equity investments

227,160

-

-

227,160

Total financial assets carried at fair value

227,160

-

-

227,160

 

Financial assets held at fair value through profit or loss at 30 September 2016

Level 1

£'000

Level 2

£'000

Level 3

£'000

Total

£'000

Equity investments

252,102

-

-

252,102

Total financial assets carried at fair value

252,102

-

-

252,102

 

The Company has early adopted the amendments to FRS 102 in respect of fair value hierarchy disclosures as published in March 2016, which is applicable to accounting periods beginning on or after 1 January 2017 with early adoption being permitted.

 

There have been no transfers between levels of fair value hierarchy during the period.

 

8.

Borrowings

 

 

As at 31 March 2017, the Company's borrowings net of any cash balances were £23,545,000 (31 March 2016: £14,105,000; 30 September 2016: £21,714,000).

 

 

 

 

9.

Going concern

 

 

The assets of the Company consist of securities that are readily realisable and, accordingly, the Directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.

 

 

10.

Subsequent events

 

 

Since the period end the Company has issued 145,000 shares for net proceeds of £1,896,000.

 

 

11.

Dividends

 

 

The Directors have declared an interim dividend of 9.00p per ordinary share (2016: 7.50p), payable on 29 June 2017 to shareholders registered on 2 June 2017. The shares will be quoted ex-dividend on 1 June 2017.  Based on the number of ordinary shares in issue at 18 May 2017 of 20,745,761 the cost of this dividend will be £1,867,000.

 

 

12.

Comparative information

 

 

The financial information contained in this half year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half years ended 31 March 2016 and 31 March 2017 has not been audited nor reviewed by the Company's auditor. The figures and financial information for the year ended 30 September 2016 are an extract based on the latest published accounts and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the Independent Auditor's Report which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.                 

                                                                       

 

13.

General information

 

Investment objective and style

The Company seeks to maximise total return from a focused portfolio of listed stocks, mainly in Continental Europe. The portfolio is unconstrained by benchmark and contains between 50 and 60 holdings at any one time. The portfolio has a bias to larger capitalised companies but it is able to invest in the equity of mid and smaller capitalised companies. The exposure to smaller capitalised stocks is normally limited to 10% of net asset value.

 

 

Company status

Registered in England and Wales: No. 427958

Registered Office: 201 Bishopsgate, London EC2M 3AE

Listed on the London Stock Exchange:  SEDOL/ISIN number is 0526885/GB0005268858 and TDIM Code is HEFT

Global Intermediary Identification Number (GIIN) is THMNPN.99999.SL.826

Legal Entity Identifier (LEI) number is 213800GS89AL1DK3IN50

 

Directors

The Directors of the Company are:

Rodney Dennis (Chairman), Alexander Comba (Chairman of the Audit Committee), Alain Dromer, Eliza Dungworth and Robin Archibald.

 

The Corporate Secretary is Henderson Secretarial Services Limited.

 

Website

Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersoneuropeanfocus.com

 

14.

Half year report

 

 

The half year report will be available in typed format on the Company's website or from the Company's registered office, 201 Bishopsgate, London EC2M 3AE. An update extracted from the Company's report for the half year ended 31 March 2017 will be posted to shareholders in late May and will be available on the website thereafter.

 

 

             

 

For further information contact:

 

James de Sausmarez

Director and Head of Investment Trusts

Henderson Investment Funds Limited

Tel: 020 7818 3349

Sarah Gibbons-Cook

Investor Relations and PR Manager

Henderson Global Investors

Tel: 020 7818 3198

 


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