Half Yearly Report Announceme
MURRAY INTERNATIONAL TRUST PLC
HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2009
The Directors of Murray International Trust PLC report the unaudited results of the Company for the six months ended 30 June 2009.
INTERIM BOARD REPORT
Background
Global equity markets were overshadowed by harsh economic conditions over the past six months as debt de-leveraging through the developed world gathered momentum. House prices continued to decline in both the UK and United States; unemployment rose in response to widespread cost-cutting by companies; and consumer spending became increasingly constrained by contracting real incomes and a fall in new credit creation. GDP growth remained negative in most leading developed nations. Respite, in the form of lower bond yields, was not forthcoming as aggressive monetary policy failed to have the desired effect of lowering borrowing costs. Over the period, in local and sterling terms, most global equity markets declined. Notable exceptions included Brazil and numerous SE Asian markets, many of which recorded strong gains. Free from over-indebtedness and no longer hostage to global capital flows, these markets benefited from decent economic growth and impressive improvements in corporate profitability.
Investment Changes
During the period we continued the policy, begun in 2008, of steadily adding to the equity portfolios by buying shares mainly in the developing nations. The proportion of net assets of the Trust invested in equities rose from 97% on 31 December 2008 to 106% on 30 June 2009 the funds being taken from the fixed interest and cash portions of the portfolio.
Income showed a good increase in the six months compared to that received in the equivalent period last year, due to increased dividends paid by many of our companies and the increased value of overseas income when exchanged back into sterling. On 22 April 2009 the Directors announced a first interim dividend of 5.6p per Ordinary share for the current year compared with 4.8p per share last year. Since the end of June a second interim dividend also of 5.6p (2008 - 4.8p) has been announced and it will be paid to shareholders on 13 November 2009.
Performance
The Net Asset Value total return, with net income reinvested for the six months to 30 June 2009 was -0.7% compared with a return of -3.7% on the Trust's benchmark (40% the FTSE World UK and 60% FTSE World ex UK). Over the six months the share price rose by 7.9%, reflecting the move to a premium to the net asset value on which the shares trade.
Absolute and relative performance was enhanced by maintaining low levels of investment in the USA and having significant exposure to Asia and Latin America. Positive contributions from stock selection in Brazil, China and Korea were also material, as was the impact of additional cash invested in cyclical companies earlier in the year.
Issue of New Shares
During the period under review the Company issued 2.375 million new Ordinary shares at a premium to the prevailing net asset value per Ordinary share at the time of each issue. Subsequent to the period end, a further 1.1 million new Ordinary shares have been issued. By issuing shares at a premium, the Company is able to improve the liquidity of its shares and enhance very slightly the net asset value per share. Such issuance is also important for Share Plan Participants and other regular purchasers of the Company's shares because it ensures that the premium is managed and does not become too large. At the Annual General Meeting of the Company held on 22 April 2009 ('AGM'), shareholders authorised the Company to issue new Ordinary shares for cash representing up to 10 per cent. of the issued share capital. The Board will continue to authorise the issue of new shares, at a premium, as and when there is unfulfilled demand in the market and subject to the overriding Listing Rule requirement not to issue more than 10 per cent. in any rolling 12 month period.
Directorate
Following the retirement of David Benson at the AGM in April, I am very pleased to advise you of the appointment of Dr Kevin Carter as an independent non-executive director of the Company with effect from 23 April 2009. Dr Carter has had a very successful career in investment both within asset management and as an adviser to pension funds and will bring valuable expertise to the Board.
Outlook
The general economic landscape will continue to be dominated by the need of the developed nations, particularly the U.S. and U.K., to reduce their public and private debt once a measure of stability has been achieved. Total worldwide corporate write downs and credit losses recently surpassed the $1.5 trillion mark but the global financial system is still in need of major restructuring before growth can be resumed. Unfortunately, the long and painful downward adjustment to living standards that accompanies debt deleveraging is only just beginning. Deflation still remains the prime threat in the developed world. Fortunately, not all countries suffer from such chronic structural weakness. Regions such as Asia, Latin America and the emerging world have not been totally immune from the downturn in overall global activity but remain fundamentally solid. Looking towards the future, favourable demographics, rising incomes and surplus savings in such regions will continue to support domestic growth and many well managed, financially strong companies located there will continue to prosper and offer attractive investment opportunities.
J F H Trott
Chairman
6 August 2009
Principal Risks and Uncertainties
The Listing Rules require the Company to remind its shareholders of the principal risks arising from the Company's shares. Many of the stocks in which the Company invests are exposed to the risk of political change, exchange controls, tax or other regulations which may affect their value and marketability. Currency fluctuations may also affect the value of the Company's investments and the income derived therefrom. Companies in emerging markets are not always subject to the equivalent accounting, auditing and financial standards of those in the United Kingdom. There may therefore be less supervision and regulation in this respect.
Currently 70% of the investment management fee and finance costs and 100% of the performance fee are taken out of capital. This increases distributable income at the expense of capital growth, which will either be eroded or constrained. Maintaining a high level of dividend may also diminish capital value. In common with most investment trusts, Murray International Trust is able to borrow for investment purposes. The use of gearing is likely to lead to volatility in the Net Asset Value (NAV), meaning that a relatively small movement either down or up in value of the Company's total assets will result in a magnified movement in the same direction of that NAV. There is no guarantee that the market price of shares in investment trusts will fully reflect their underlying NAV.
The market prices of fixed interest stocks and, to a lesser extent, convertibles may be affected by changes in interest rates.
Information on each of these areas is given in the Annual Report and Accounts for the year ended 31 December 2008.
Directors' Responsibility Statement
The Directors are responsible for preparing this 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 contained 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 (constituting the interim management report) includes a fair review of the information required by rule 4.2.7R of the UK Listing Authority Disclosure and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year) and 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could so do).
The Half-Yearly Report for the six months to 30 June 2009 comprises the Interim Board Report 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.
For and on behalf of the Board of Murray International Trust PLC
J F H Trott
Chairman
6 August 2009
INCOME STATEMENT
|
|
|
Six months ended |
||
|
|
|
30 June 2009 |
||
|
|
|
(unaudited) |
||
|
|
|
Revenue |
Capital |
Total |
|
|
Note |
£'000 |
£'000 |
£'000 |
|
Losses on investments |
|
- |
(15,166) |
(15,166) |
|
|
|
|
|
|
|
Income |
3 |
21,363 |
7 |
21,370 |
|
Investment management fees |
|
(512) |
(1,194) |
(1,706) |
|
Performance fees |
|
- |
(1,437) |
(1,437) |
|
VAT recoverable on investment management and |
|
- |
- |
- |
|
performance fees |
|
|
|
|
|
Other expenses |
|
(729) |
- |
(729) |
|
Currency losses |
|
- |
(1,756) |
(1,756) |
|
|
|
________ |
________ |
________ |
|
Net return before finance costs and taxation |
|
20,122 |
(19,546) |
576 |
|
|
|
|
|
|
|
Finance costs |
|
(526) |
(1,229) |
(1,755) |
|
|
|
________ |
________ |
________ |
|
Return on ordinary activities before tax |
|
19,596 |
(20,775) |
(1,179) |
|
|
|
|
|
|
|
Tax on ordinary activities |
|
(4,345) |
1,081 |
(3,264) |
|
|
|
________ |
________ |
________ |
|
Return/(loss) attributable to equity shareholders |
|
15,251 |
(19,694) |
(4,443) |
|
|
|
________ |
________ |
________ |
|
Return/(loss) per Ordinary share (pence) |
5 |
16.8 |
(21.7) |
(4.9) |
|
|
|
________ |
________ |
________ |
|
Return/(loss) per Ordinary share assuming full conversion of the B Ordinary shares (pence) |
5 |
16.6 |
(21.4) |
(4.8) |
|
|
|
________ |
________ |
________ |
|
|
||||
|
The total column of the statement represents the profit and loss account of the Company. The Company has no other gains or losses other than those recognised in the Income Statement above. All revenue and capital items in the above statement derive from continuing operations. |
||||
|
|
||||
|
Ordinary dividends on equity shares (£'000) |
4 |
12,150 |
- |
12,150 |
|
|
|
________ |
________ |
________ |
|
The above dividend information does not form part of the Income Statement. |
||||
INCOME STATEMENT (Cont'd)
|
|
|
Six months ended |
||
|
|
|
30 June 2008 |
||
|
|
|
(unaudited) |
||
|
|
|
Revenue |
Capital |
Total |
|
|
Note |
£'000 |
£'000 |
£'000 |
|
Losses on investments |
|
- |
(29,551) |
(29,551) |
|
|
|
|
|
|
|
Income |
3 |
17,728 |
- |
17,728 |
|
Investment management fees |
|
(506) |
(1,181) |
(1,687) |
|
Performance fees |
|
- |
(2,284) |
(2,284) |
|
VAT recoverable on investment management and |
|
- |
- |
- |
|
performance fees |
|
|
|
|
|
Other expenses |
|
(646) |
- |
(646) |
|
Currency losses |
|
- |
(1,537) |
(1,537) |
|
|
|
________ |
________ |
________ |
|
Net return before finance costs and taxation |
|
16,576 |
(34,553) |
(17,977) |
|
|
|
|
|
- |
|
Finance costs |
|
(355) |
(829) |
(1,184) |
|
|
|
________ |
________ |
________ |
|
Return on ordinary activities before tax |
|
16,221 |
(35,382) |
(19,161) |
|
|
|
|
|
- |
|
Tax on ordinary activities |
|
(4,008) |
1,224 |
(2,784) |
|
|
|
________ |
________ |
________ |
|
Return/(loss) attributable to equity shareholders |
|
12,213 |
(34,158) |
(21,945) |
|
|
|
________ |
________ |
________ |
|
|
|
|
|
|
|
Return/(loss) per Ordinary share (pence) |
5 |
14.1 |
(39.4) |
(25.3) |
|
|
|
________ |
________ |
________ |
|
Return/(loss) per Ordinary share assuming full conversion of the B Ordinary shares (pence) |
5 |
13.9 |
(38.9) |
(25.0) |
|
|
|
________ |
________ |
________ |
|
|
||||
|
The total column of the statement represents the profit and loss account of the Company. The Company has no other gains or losses other than those recognised in the Income Statement above. All revenue and capital items in the above statement derive from continuing operations. |
||||
|
|
|
|
|
|
|
Ordinary dividends on equity shares (£'000) |
4 |
10,740 |
- |
10,740 |
|
|
|
________ |
________ |
________ |
INCOME STATEMENT (Cont'd)
|
|
|
Year ended |
||||
|
|
|
31 December 2008 |
||||
|
|
|
(audited) |
||||
|
|
|
Revenue |
Capital |
Total |
||
|
|
Note |
£'000 |
£'000 |
£'000 |
||
|
Losses on investments |
|
- |
(93,840) |
(93,840) |
||
|
|
|
|
|
|
||
|
Income |
3 |
32,242 |
8 |
32,250 |
||
|
Investment management fees |
|
(1,018) |
(2,374) |
(3,392) |
||
|
Performance fees |
|
- |
(2,269) |
(2,269) |
||
|
VAT recoverable on investment management and |
|
310 |
1,027 |
1,337 |
||
|
performance fees |
|
|
|
|
||
|
Other expenses |
|
(1,469) |
- |
(1,469) |
||
|
Currency losses |
|
- |
(2,200) |
(2,200) |
||
|
|
|
________ |
________ |
________ |
||
|
Net return before finance costs and taxation |
|
30,065 |
(99,648) |
(69,583) |
||
|
|
|
|
|
|
||
|
Finance costs |
|
(885) |
(2,066) |
(2,951) |
||
|
|
|
________ |
________ |
________ |
||
|
Return on ordinary activities before tax |
|
29,180 |
(101,714) |
(72,534) |
||
|
|
|
|
|
|
||
|
Tax on ordinary activities |
|
(7,282) |
1,619 |
(5,663) |
||
|
|
|
________ |
________ |
________ |
||
|
Return/(loss) attributable to equity shareholders |
|
21,898 |
(100,095) |
(78,197) |
||
|
|
|
________ |
________ |
________ |
||
|
|
|
|
|
|
||
|
Return/(loss) per Ordinary share (pence) |
5 |
25.0 |
(114.4) |
(89.4) |
||
|
Return/(loss) per Ordinary share assuming full conversion of the B Ordinary shares (pence) |
5 |
24.7 |
(113.0) |
(88.3) |
||
|
|
|
________ |
________ |
________ |
||
|
|
|
|
|
|
||
|
The total column of the statement represents the profit and loss account of the Company. The Company has no other gains or losses other than those recognised in the Income Statement above. All revenue and capital items in the above statement derive from continuing operations. |
||||||
|
|
|
|
|
|
||
|
Ordinary dividends on equity shares (£'000) |
4 |
19,148 |
- |
19,148 |
||
BALANCE SHEET
|
|
|
As at |
As at |
As at |
|
|
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
Notes |
£'000 |
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
|
Investments at fair value through profit or loss |
|
681,499 |
647,196 |
618,212 |
|
|
|
________ |
________ |
________ |
|
Current assets |
|
|
|
|
|
Debtors |
|
6,858 |
4,698 |
22,202 |
|
Cash and short-term deposits |
|
19,509 |
75,208 |
99,301 |
|
|
|
________ |
________ |
________ |
|
|
|
26,367 |
79,906 |
121,503 |
|
|
|
________ |
________ |
________ |
|
Creditors: amounts falling due within one year |
|
|
|
|
|
Bank loans |
|
(52,865) |
- |
- |
|
Other creditors |
|
(7,682) |
(8,817) |
(8,233) |
|
|
|
________ |
________ |
________ |
|
|
|
(60,547) |
(8,817) |
(8,233) |
|
|
|
________ |
________ |
________ |
|
Net current (liabilities)/assets |
|
(34,180) |
71,089 |
113,270 |
|
|
|
________ |
________ |
________ |
|
Total assets less current liabilities |
|
647,319 |
718,285 |
731,482 |
|
|
|
|
|
|
|
Creditors: amounts falling due after more than one year |
|
|
|
|
|
Bank loans and debentures |
|
(77,931) |
(98,913) |
(159,107) |
|
Other creditors |
|
(2,843) |
(3,560) |
(3,548) |
|
|
|
________ |
________ |
________ |
|
|
|
(80,774) |
(102,473) |
(162,655) |
|
|
|
________ |
________ |
________ |
|
Net assets |
|
566,545 |
615,812 |
568,827 |
|
|
|
________ |
________ |
________ |
|
Capital and reserves |
|
|
|
|
|
Called-up share capital |
|
23,325 |
22,008 |
22,725 |
|
Share premium account |
|
32,884 |
2,204 |
19,167 |
|
Capital redemption reserve |
|
8,230 |
8,230 |
8,230 |
|
Capital reserve |
6 |
458,231 |
543,873 |
477,931 |
|
Revenue reserve |
|
43,875 |
39,497 |
40,774 |
|
|
|
________ |
________ |
________ |
|
Equity shareholders' funds |
7 |
566,545 |
615,812 |
568,827 |
|
|
|
________ |
________ |
________ |
|
Net Asset Value per Ordinary and B Ordinary share (pence) |
7 |
607.2 |
699.5 |
625.8 |
|
|
|
________ |
________ |
________ |
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
|
Six months ended 30 June 2009 (unaudited) |
|
|
|
|
|
|
|
|
|
Share |
Capital |
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2008 |
22,725 |
19,167 |
8,230 |
477,931 |
40,774 |
568,827 |
|
Return on ordinary activities after taxation |
- |
- |
- |
(19,694) |
15,251 |
(4,443) |
|
Dividends paid (see note 4) |
- |
- |
- |
- |
(12,150) |
(12,150) |
|
Issue of new shares |
600 |
13,717 |
- |
(6) |
- |
14,311 |
|
|
______ |
______ |
________ |
________ |
________ |
________ |
|
Balance at 30 June 2009 |
23,325 |
32,884 |
8,230 |
458,231 |
43,875 |
566,545 |
|
|
______ |
______ |
________ |
________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2008 (unaudited) |
|
|
|
|
|
|
|
|
|
Share |
Capital |
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2007 |
21,926 |
22 |
8,230 |
578,035 |
38,024 |
646,237 |
|
Return on ordinary activities after taxation |
- |
- |
- |
(34,158) |
12,213 |
(21,945) |
|
Dividends paid (see note 4) |
- |
- |
- |
- |
(10,740) |
(10,740) |
|
Issue of new shares |
82 |
2,182 |
- |
(4) |
- |
2,260 |
|
|
______ |
______ |
________ |
________ |
________ |
________ |
|
Balance at 30 June 2008 |
22,008 |
2,204 |
8,230 |
543,873 |
39,497 |
615,812 |
|
|
______ |
______ |
________ |
________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
Year ended 31 December 2008 (audited) |
|
|
|
|
|
|
|
|
|
Share |
Capital |
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2007 |
21,926 |
22 |
8,230 |
578,035 |
38,024 |
646,237 |
|
Return on ordinary activities after taxation |
- |
- |
- |
(100,095) |
21,898 |
(78,197) |
|
Dividends paid (see note 4) |
- |
- |
- |
- |
(19,148) |
(19,148) |
|
Issue of new shares |
799 |
19,145 |
- |
(9) |
- |
19,935 |
|
|
______ |
______ |
________ |
________ |
________ |
________ |
|
Balance at 31 December 2008 |
22,725 |
19,167 |
8,230 |
477,931 |
40,774 |
568,827 |
|
|
______ |
______ |
________ |
________ |
________ |
________ |
CASH FLOW STATEMENT
|
|
Six months ended |
Six months ended |
Year |
|
|
30 June |
30 June |
31 December 2008 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£'000 |
£'000 |
£'000 |
|
Net return/(loss) before finance costs and taxation |
576 |
(17,977) |
(69,583) |
|
Adjustments for: |
|
|
|
|
Losses on investments |
15,166 |
29,551 |
93,840 |
|
Amortisation of fixed income book cost |
(397) |
215 |
387 |
|
Effect of foreign exchange losses |
1,756 |
1,537 |
2,200 |
|
Increase in accrued income |
(229) |
(792) |
(368) |
|
Decrease/(increase) in other debtors |
1,335 |
(38) |
(1,184) |
|
(Decrease)/increase in accruals |
(897) |
773 |
857 |
|
Overseas tax suffered |
(1,455) |
(1,203) |
(1,977) |
|
|
___________ |
___________ |
___________ |
|
Net cash inflow from operating activities |
15,855 |
12,066 |
24,172 |
|
|
|
|
|
|
Returns on investment and servicing of finance |
|
|
|
|
Interest paid |
(1,895) |
(1,179) |
(2,646) |
|
|
___________ |
___________ |
___________ |
|
Net cash outflow from servicing of finance |
(1,895) |
(1,179) |
(2,646) |
|
|
|
|
|
|
Corporation tax paid |
(2,019) |
- |
(1,751) |
|
|
|
|
|
|
Financial investment |
|
|
|
|
Purchases of investments |
(114,578) |
(88,203) |
(202,651) |
|
Sales of investments |
36,523 |
91,238 |
169,789 |
|
|
___________ |
___________ |
___________ |
|
Net cash (outflow)/inflow from financial investment |
(78,055) |
3,035 |
(32,862) |
|
Equity dividends paid |
(12,150) |
(10,740) |
(19,148) |
|
|
___________ |
___________ |
___________ |
|
Net cash (outflow)/inflow before financing |
(78,264) |
3,182 |
(32,235) |
|
|
|
|
|
|
Financing |
|
|
|
|
Share issue |
14,311 |
2,260 |
19,935 |
|
Loans repaid |
- |
(19,850) |
(19,850) |
|
Loans drawn down |
- |
38,915 |
38,915 |
|
|
___________ |
___________ |
___________ |
|
Net cash inflow from financing |
14,311 |
21,325 |
39,000 |
|
|
___________ |
___________ |
___________ |
|
(Decrease)/increase in cash |
(63,953) |
24,507 |
6,765 |
|
|
___________ |
___________ |
___________ |
|
Analysis of changes in cash during the period |
|
|
|
|
Opening balance |
99,301 |
44,687 |
44,687 |
|
(Decrease)/increase in cash as above |
(63,953) |
24,507 |
6,765 |
|
Currency differences |
(15,839) |
6,014 |
47,849 |
|
|
___________ |
___________ |
___________ |
|
Closing balances |
19,509 |
75,208 |
99,301 |
|
|
___________ |
___________ |
___________ |
NOTES TO THE ACCOUNTS
|
1. |
Accounting policies |
|
|
|
(a) |
Basis of accounting |
|
|
|
The accounts have been prepared 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' (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. |
Taxation |
|
|
The taxation expense reflected in the Income Statement is based on the estimated annual tax rate expected for the full financial year. The estimated annual corporation tax rate used for the year to 31 December 2009 is 28%. |
|
|
|
Six months ended |
Six months ended |
Year |
|
|
|
30 June |
30 June 2008 |
31 December 2008 |
|
3. |
Income |
£'000 |
£'000 |
£'000 |
|
|
Income from investments |
|
|
|
|
|
UK dividends |
2,858 |
2,152 |
3,982 |
|
|
UK unfranked investment income |
736 |
1,204 |
1,879 |
|
|
Overseas dividends |
14,867 |
11,934 |
20,695 |
|
|
Overseas interest |
2,474 |
1,463 |
2,966 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
20,935 |
16,753 |
29,522 |
|
|
|
__________ |
__________ |
__________ |
|
|
Interest |
|
|
|
|
|
Deposit interest |
247 |
975 |
1,208 |
|
|
Money market interest |
181 |
- |
1,512 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
428 |
975 |
2,720 |
|
|
|
__________ |
__________ |
__________ |
|
|
Total income |
21,363 |
17,728 |
32,242 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
Six months ended |
Six months ended |
Year |
|
|
|
30 June |
30 June 2008 |
31 December 2008 |
|
4. |
Ordinary dividends on equity shares |
£'000 |
£'000 |
£'000 |
|
|
Third interim dividend 2008 of 4.80p (2007 - 4.30p) |
4,310 |
3,724 |
3,724 |
|
|
Final dividend 2008 of 8.80p (2007 - 8.10p) |
7,985 |
7,016 |
7,016 |
|
|
First interim dividend 2008 of 4.80p |
- |
- |
4,173 |
|
|
Second interim dividend 2008 of 4.80p |
- |
- |
4,235 |
|
|
Return of unclaimed dividends from previous periods |
(145) |
- |
- |
|
|
|
__________ |
__________ |
__________ |
|
|
|
12,150 |
10,740 |
19,148 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|||
|
|
A first interim dividend for 2009 of 5.60p (2008 - 4.80p) will be paid on 14 August 2009 to shareholders on the register on 10 July 2009. The ex-dividend date is 8 July 2009. |
|||
|
|
|
|||
|
|
A second interim dividend for 2009 of 5.60p (2008 - 4.80p) will be paid on 13 November 2009 to shareholders on the register on 9 October 2009. The ex-dividend date is 7 October 2009. |
|||
|
|
|
Six months ended |
Six months ended |
Year |
|
|
|
30 June |
30 June 2008 |
31 December 2008 |
|
5. |
Returns per share |
£'000 |
£'000 |
£'000 |
|
|
Based on the following figures: |
|
|
|
|
|
Revenue return |
15,251 |
12,213 |
21,898 |
|
|
Capital return |
(19,694) |
(34,158) |
(100,095) |
|
|
|
__________ |
__________ |
__________ |
|
|
Total return |
(4,443) |
(21,945) |
(78,197) |
|
|
|
__________ |
__________ |
__________ |
|
|
Weighted average number of Ordinary shares |
90,907,224 |
86,682,589 |
87,497,567 |
|
|
Weighted average number of B Ordinary shares |
1,122,477 |
1,098,478 |
1,101,541 |
|
|
|
__________ |
__________ |
__________ |
|
|
Weighted average number of Ordinary shares assuming conversion of B Ordinary shares |
|
|
|
|
|
|
__________ |
__________ |
__________ |
|
6. |
Capital reserves |
|
|
The capital reserve reflected in the Balance Sheet at 30 June 2009 includes gains of £100,076,000 (30 June 2008 - gains of £143,227,000; 31 December 2008 - gains of £78,446,000) which relate to the revaluation of investments held at the reporting date. |
|
7. |
Diluted net asset value |
|||
|
|
The diluted net asset value per share and the net asset value attributable to the Ordinary shares (including conversion of the B Ordinary shares) at the period end calculated in accordance with the Articles of Association were as follows: |
|||
|
|
|
|
|
|
|
|
|
As at |
As at |
As at |
|
|
|
30 June |
30 June 2008 |
31 December 2008 |
|
|
Attributable net assets (£'000) |
566,545 |
615,812 |
568,827 |
|
|
|
__________ |
__________ |
__________ |
|
|
Number of shares in issue: |
|
|
|
|
|
Ordinary shares |
92,234,624 |
86,936,042 |
89,788,992 |
|
|
B Ordinary shares |
1,066,236 |
1,096,568 |
1,111,928 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
93,300,860 |
88,032,610 |
90,900,920 |
|
|
|
__________ |
__________ |
__________ |
|
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 losses on investments in the Income Statement. The total costs were as follows: |
|||
|
|
|
|
|
|
|
|
|
Six months ended |
Six months ended |
Year |
|
|
|
30 June |
30 June 2008 |
31 December 2008 |
|
|
|
£'000 |
£'000 |
£'000 |
|
|
Purchases |
250 |
151 |
344 |
|
|
Sales |
33 |
60 |
99 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
283 |
211 |
443 |
|
|
|
__________ |
__________ |
__________ |
|
9. |
Commitments, contingencies and post Balance Sheet events |
|
|
On 5 November 2007, the European Court of Justice ruled that management fees should be exempt from VAT. HMRC has announced its intention not to appeal against this case to the UK VAT Tribunal and therefore protective claims which have been made in relation to the Company will be processed in due course. |
|
|
|
|
|
A refund of £1,337,000 for the period 1 January 2004 to 30 September 2007 has been received from the Manager. The reclaim for previous periods and the timescale for the receipt are at present uncertain and the Company has taken no account in these financial statements of any such repayment. |
|
10. |
The financial information in this report comprises non-statutory accounts as defined in Sections 434-436 of the Companies Act 2006 and has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information. The financial information for the year ended 31 December 2008 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified under Section 498 of the Companies Act 2006. |
|
11. |
This Half-Yearly Report was approved by the Board on 6 August 2009. |
12. A summary of investment changes for the six months to 30 June 2009, a summary of net assets as at 30 June 2009 and a schedule of the fifty largest investments as at 30 June 2009 are attached.
By order of the Board
ABERDEEN ASSET MANAGEMENT PLC, SECRETARY
6 August 2009
The Half Yearly Report will be printed and issued to shareholders and further copies will be available to the public at the registered office of the Company, 40 Princes Street, Edinburgh EH2 2BY.
SUMMARY OF INVESTMENT CHANGES
|
|
Valuation |
|
Appreciation/ |
Valuation |
||
|
|
30 June 2009 |
Transactions |
(depreciation) |
31 December 2008 |
||
|
|
£'000 |
% |
£'000 |
£'000 |
£'000 |
% |
|
Equities |
|
|
|
|
|
|
|
United Kingdom |
89,880 |
12.8 |
11,178 |
627 |
78,075 |
10.7 |
|
North America |
60,839 |
8.7 |
527 |
(8,312) |
68,624 |
9.3 |
|
Europe ex UK |
132,487 |
18.9 |
22,807 |
(16,783) |
126,463 |
17.3 |
|
Japan |
53,296 |
7.6 |
(5,979) |
(12,919) |
72,194 |
9.9 |
|
Asia Pacific ex Japan |
157,213 |
22.5 |
25,480 |
6,199 |
125,534 |
17.2 |
|
Latin America |
109,114 |
15.6 |
13,573 |
15,380 |
80,161 |
10.9 |
|
|
_______ |
_______ |
_________ |
_________ |
_______ |
_______ |
|
|
602,829 |
86.1 |
67,586 |
(15,808) |
551,051 |
75.3 |
|
|
_______ |
_______ |
_________ |
_________ |
_______ |
_______ |
|
Fixed income |
|
|
|
|
|
|
|
United Kingdom |
27,811 |
4.0 |
(4,451) |
878 |
31,384 |
4.2 |
|
North America |
39,029 |
5.5 |
15,420 |
408 |
23,201 |
3.3 |
|
Asia Pacific ex Japan |
6,040 |
0.9 |
(57) |
(282) |
6,379 |
0.9 |
|
Latin America |
5,790 |
0.8 |
(45) |
(362) |
6,197 |
0.8 |
|
|
_______ |
_______ |
_________ |
_________ |
_______ |
_______ |
|
|
78,670 |
11.2 |
10,867 |
642 |
67,161 |
9.2 |
|
|
_______ |
_______ |
_________ |
_________ |
_______ |
_______ |
|
Other net assets{A} |
18,685 |
2.7 |
(64,518) |
(30,067) |
113,270 |
15.5 |
|
|
_______ |
_______ |
_________ |
_________ |
_______ |
_______ |
|
Total assets |
700,184 |
100.0 |
13,935 |
(45,233) |
731,482 |
100.0 |
|
|
_______ |
_______ |
_________ |
_________ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
{A} Figure for 30 June 2009 excludes bank loan of £52,865,000 (31 December 2009 - £nil) which is shown as a current liability in the Balance Sheet. |
||||||
SUMMARY OF NET ASSETS
|
|
Valuation |
Valuation |
||
|
|
30 June 2009 |
30 June 2008 |
||
|
|
£'000 |
% |
£'000 |
% |
|
Equities |
602,829 |
106.4 |
562,433 |
91.3 |
|
Fixed income |
78,670 |
13.9 |
84,763 |
13.8 |
|
Other net assets |
18,685 |
3.3 |
71,089 |
11.5 |
|
Prior charges |
(130,796) |
(23.1) |
(98,913) |
(16.0) |
|
Other long term liabilities |
(2,843) |
(0.5) |
(3,560) |
(0.6) |
|
|
__________ |
__________ |
__________ |
__________ |
|
Equity shareholders' funds |
566,545 |
100.0 |
615,812 |
100.0 |
|
|
__________ |
__________ |
__________ |
__________ |
|
|
|
|
|
|
INVESTMENT PORTFOLIO
AS AT 30 JUNE 2009
|
|
|
Valuation |
Total assets |
|
Security |
Country |
£'000 |
% |
|
Petrobras ADR {A} |
Brazil |
29,790 |
4.3 |
|
British American Tobacco {B} |
UK & Malaysia |
21,993 |
3.1 |
|
Rio Tinto {C} |
UK & USA |
19,720 |
2.8 |
|
Souza Cruz |
Brazil |
18,506 |
2.6 |
|
Unilever Indonesia |
Indonesia |
17,608 |
2.5 |
|
Vale Rio Doce {D} |
Brazil & USA |
16,433 |
2.4 |
|
Tenaris ADR |
Argentina |
16,389 |
2.3 |
|
Standard Chartered |
UK |
15,669 |
2.2 |
|
Aeroportuario del Sureste ADS |
Mexico |
14,205 |
2.0 |
|
Nordea |
Sweden |
14,079 |
2.0 |
|
|
|
_________ |
_________ |
|
Top ten investments |
|
184,392 |
26.2 |
|
|
|
_________ |
_________ |
|
PTT Exploration |
Thailand |
14,009 |
2.0 |
|
Taiwan Mobile |
Taiwan |
13,450 |
1.9 |
|
QBE Insurance Group |
Australia |
12,398 |
1.8 |
|
Telecomunicacoes de Sao Paulo |
Brazil |
12,149 |
1.7 |
|
Petrochina |
China |
12,129 |
1.7 |
|
ENI |
Italy |
11,855 |
1.7 |
|
Wing Hang Bank |
Hong Kong |
11,652 |
1.7 |
|
Philip Morris International |
USA |
11,652 |
1.7 |
|
Schlumberger |
USA |
11,498 |
1.6 |
|
Kimberly Clark de Mexico |
Mexico |
10,837 |
1.5 |
|
|
|
_________ |
_________ |
|
Top twenty investments |
|
306,021 |
43.5 |
|
|
|
_________ |
_________ |
|
Public Bank |
Malaysia |
10,823 |
1.5 |
|
E.ON |
Germany |
10,517 |
1.5 |
|
Swire Pacific B |
Hong Kong |
10,352 |
1.5 |
|
Roche Holdings |
Switzerland |
10,308 |
1.5 |
|
Total Fina |
France |
10,157 |
1.5 |
|
Taiwan Semiconductor Manufacturing |
Taiwan |
10,153 |
1.5 |
|
Telefonica Emisiones 5.375% 02/02/18 |
UK |
10,034 |
1.4 |
|
Johnson & Johnson |
USA |
9,647 |
1.4 |
|
Metro |
Germany |
9,634 |
1.4 |
|
Procter & Gamble |
USA |
9,611 |
1.4 |
|
|
|
_________ |
_________ |
|
Top thirty investments |
|
407,257 |
58.1 |
|
|
|
_________ |
_________ |
|
Portugal Telecom |
Portugal |
9,498 |
1.4 |
|
Kraft Foods |
USA |
9,386 |
1.3 |
|
Mapfre |
Spain |
9,284 |
1.3 |
|
Schneider Electric |
France |
9,249 |
1.3 |
|
Belgacom |
Belgium |
9,184 |
1.3 |
|
AstraZeneca |
UK |
9,080 |
1.3 |
|
Intel |
USA |
9,045 |
1.3 |
|
Amada |
Japan |
9,032 |
1.3 |
|
Casino |
France |
8,994 |
1.3 |
|
Centrica |
UK |
8,892 |
1.3 |
|
|
|
_________ |
_________ |
|
Top forty investments |
|
498,901 |
71.2 |
|
|
|
_________ |
_________ |
|
Pemex Project Funding Master 7.75% 29/09/2049 |
USA |
8,841 |
1.3 |
|
Imperial Tobacco 5.5% 22/11/2016 |
UK |
8,624 |
1.2 |
|
Takeda Chemical |
Japan |
8,614 |
1.2 |
|
Zurich Financial Services |
Switzerland |
8,549 |
1.2 |
|
CLP Holdings |
Hong Kong |
8,457 |
1.2 |
|
National Grid Transco |
UK |
8,212 |
1.2 |
|
Bank of Yokohama |
Japan |
8,119 |
1.2 |
|
China Mobile |
China |
7,904 |
1.1 |
|
Royal Dutch Shell |
UK |
7,630 |
1.1 |
|
Parco |
Japan |
7,326 |
1.0 |
|
|
|
_________ |
_________ |
|
Top fifty investments |
|
581,177 |
82.9 |
|
|
|
_________ |
_________ |
|
Other investments |
|
100,322 |
14.4 |
|
|
|
_________ |
_________ |
|
Total investments |
|
681,499 |
97.3 |
|
|
|
_________ |
_________ |
|
Net current assets |
|
18,685 |
2.7 |
|
|
|
_________ |
_________ |
|
Total assets |
|
700,184 |
100.0 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
{A} Holding comprises equity and fixed income securities, split £26,310,000 and £3,480,000 respectively. |
|||
|
{B} Valuation comprises equity holdings in both UK and Malaysia split £11,711,000 and £10,282,000 respectively. |
|||
|
{C} Holding comprises equity and fixed income securities, split £9,391,000 and £10,329,000 respectively. |
|||
|
{D} Holding comprises equity and fixed income securities, split £8,361,000 and £8,072,000 respectively. |
|||
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