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Bankers Investment (BNKR)

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Monday 20 January, 2014

Bankers Investment

Final Results

RNS Number : 0002Y
Bankers Investment Trust PLC
20 January 2014
 



    Page 1 of 16

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

This announcement contains regulated information

 

MANAGEMENT REPORT

Chairman's Statement:

 

·      Net Asset Value increase of 23.8%

·      Share price increase of 33.9%

·      47th consecutive year of dividend increases

 

Performance

As our 125th year draws to an end it is pleasing to be able to report one of the strongest sets of results in Bankers' recent history. A net asset value increase of 23.8% was the key catalyst for the significant reduction in the discount to which the shares traded at during the year, resulting in a share price return of 33.9%. The twin objectives of long term capital appreciation and dividend growth have resulted in Bankers cementing its position as a core holding in many private client portfolios and has created the demand to allow us to issue shares, the first time since 1994. In the last year 350,000 shares were issued at a premium to net asset value, and since the year end we have issued a further 400,000 shares.

 

This performance was achieved against a positive global equity market background with strong returns being reported by all major markets. Further detail as to geographic returns and market reports can be found in the Annual Report and Financial Statements.

Revenue and Dividends

The underlying portfolio has continued to generate revenue growth which has enabled the Company to continue its 46 year record of increasing dividend payments to shareholders whilst also adding modestly to reserves. It is one of the key objectives of the Company to increase dividends in excess of the Retail Prices Index. This has been achieved consistently. A significant revenue reserve is one of the key strengths of Bankers. The reserve allows the Board and shareholders to have confidence in our dividend objective being met.

 

We are recommending a final dividend of 3.6p per share, making a total of 14.13p for the year, an

increase of 6% and marking the 47th consecutive year of dividend increases. As we look forward, the Board would expect to be paying out the great majority of the revenue generated each year in the form of dividends. Accordingly, the current level of revenue reserve is not expected to grow significantly from the 2013 year end levels. We feel confident in being able to forecast a dividend per share of not less than 14.7p per share, an increase of 4%.

 

Governance and Board Changes

I would like to take this opportunity to thank my predecessor Richard Brewster who joined the Board in 1994 and became Chairman in 2005. I thank him for all of his hard work and wise counsel to me and the Board of Bankers during his long association with the Company. Over the years we have aimed to achieve a level of continuity in regard to the Board and thus we believe the efficient management and oversight of your Company will continue in the same vein as it has under Richard's tenure. 

 

In this regard I am pleased to report that David Wild will be joining the Board on 26 February 2014. David has a commercial background, having served in a number of senior positions in the retail sector. He is currently the non-executive Chairman of Premier Foods PLC. Further detail on David's biography can be found in the Report and Financial Statements. A resolution, seeking shareholder approval for his appointment will be proposed at the forthcoming Annual General Meeting.

 

 

 

 

Page 2 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

David will bring the Board up to five non-executive directors following the resignation of Peter Sullivan in June 2013. The Board would also like to formally thank Peter for his contribution to the Company during his tenure and wish him well for the future.

 

Much of the work of the Board is spent reviewing and agreeing the implementation of, and decisions required resulting from, the flow of regulatory and corporate governance change. Whilst not a glamorous part of the role, your Board takes these matters seriously and has this past year been presented with significant challenges as a result of the Alternative Investment Fund Managers Directive ('AIFMD') from the European Union. As a result the Board has agreed, in principle, to appoint its Manager as its Alternative Investment Fund Manager ('AIFM'). Further change will be required in regard to our Custodian and Depositary relationships. I must confess that I am not sure whether investors will be any better protected as a result of these changes but the deadline for compliance is 22 July 2014, a date which we will meet. These changes will not result in a material increase in the Company's ongoing charges.

 

Audit Tender

In light of recent UK and emerging European regulations on audit tendering and rotation, the Board has agreed that 2014 is a suitable time to put the audit out for tender. The Company will report on the outcome of the process to shareholders later in the year. Due to impending European legislation on mandatory audit firm rotation and length of tenure of our current auditors, PricewaterhouseCoopers LLP will not be participating in the audit tender. Subject to shareholder approval at the Annual General Meeting, PricewaterhouseCoopers LLP will continue as the Company's auditors until another audit firm is appointed.

 

Management Fee Changes

As my predecessor indicated in his statement last year, the performance fee was dropped with effect from 1 January 2013, and the management fee was changed to 0.4% per annum of net assets and then, following a satisfactory review with the Manager, was increased to 0.45% of net assets with effect from 1 November 2013.

 

Annual General Meeting ('AGM')

The Annual General Meeting will this year be held at 12 noon at Trinity House, London, EC3N 4DH on 26 February 2014. Full details of the business to be conducted at the meeting are set out in the Notice of Meeting which has been sent to shareholders with this report. Directions and a map showing the location of the AGM can also be found in the Notice of Meeting. The Board and I look forward to seeing many of you at this meeting at which Alex Crooke and his investment team will be making a presentation on their investment views and how these are being reflected in the composition of the Company's portfolio. Following the formal business of the meeting light refreshments will be served.

 

Outlook

Following such a strong year for global equity markets in 2013 it is probably sensible to be cautious for prospects for the year ahead. However, a low and stable interest rate environment, growing investor confidence and a better corporate outlook, especially in North America and the United Kingdom, give grounds to remain optimistic regarding equity returns. Whilst many headwinds remain, Continental European growth being a key one, investor sentiment has turned positive and, with large global institutions repositioning their asset allocation back towards equities for the first time in over five years, support for current market levels remains strong.

 

It is against this broadly positive backdrop that your Board approaches the new year with confidence for both equity markets and corporate dividend growth. The investment approach of the Company has evolved over many years and I anticipate that it will continue to deliver the consistency of returns experienced in the past regardless of the broader market challenges which will lie ahead.

 

Richard Killingbeck, Chairman



 

Page 3 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

 

Principal Risks and Uncertainties

The Board has drawn up a matrix of risks facing the Company and has put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objectives and policy,

in order to mitigate these risks as far as practicable. The principal risks which have been identified and the steps taken by the Board to mitigate these are as follows:

 

• Portfolio and market

Although the Company invests almost entirely in securities that are quoted on recognised markets, share prices may move sharply. The companies in which investments are made may operate unsuccessfully, or fail entirely. A fall in the market value of the Company's portfolio would have an adverse effect on the shareholders' funds. The Board reviews the portfolio each meeting and mitigates this risk through diversification of investments in the portfolio.

 

• Investment activity and performance

An inappropriate investment strategy (for example, in terms of asset allocation or the level of gearing) may result in underperformance against the Company's various Indices and the companies in its peer group. The Board monitors investment performance at each Board meeting and regularly reviews the extent of its borrowings.

 

• Tax and regulatory

A breach of section 1158 of the Corporation Taxes Act 2010 could lead to a loss of investment trust status, resulting in capital gains realised within the portfolio being subject to corporation tax. A breach of the UKLA Listing Rules could result in suspension of the Company's shares, while a breach of the Companies Act 2006 could lead to criminal proceedings.  Any such breaches could also lead to financial or reputational damage. The Company must also ensure compliance with the listing rules of the New Zealand Stock Exchange.  The Manager has contracted to provide investment, company secretarial, administration and accounting services through qualified professionals. The Board receives internal control reports produced by the Manager on a quarterly basis, which confirmed regulatory compliance during the year.

 

• Financial

By its nature as an investment trust, the Company's business activities are exposed to market risk (including market price risk, currency risk and interest rate risk), liquidity risk, and credit and counterparty risk. Details of these risks and how they are managed are contained in the notes in the Financial Statements.

 

• Operational

Disruption to, or failure of, the Manager's accounting, dealing or payment systems or the Custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. The Company is also exposed to the operational risk that one or more of its suppliers may not provide the required level of service.  Details of how the Board monitors the services provided by the Manager and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal controls section in the Financial Statements.

 



 

 

Page 4 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

Related Party Transactions

Other than the relationship between the Company and its directors, the provision of services by Henderson is the only related party arrangement currently in place.  Other than the fees payable by the Company in the ordinary course of business and the provision of sales and marketing services by Henderson, there have been no material transactions with this related party which have affected the financial position or performance of the Company in the financial year.

 

Statement of Directors' Responsibilities under DTR 4.1.12

Each of the directors confirms that, to the best of his or her knowledge:

 

• the Company financial statements, which have been prepared in accordance with IFRSs as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

 

• the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

 

For and on behalf of the Board of Directors

 

 

 

 

Richard Killingbeck

Chairman

 

 

 

For further information contact:                                                                     

 

 

Alex Crooke

Fund Manager

The Bankers Investment Trust PLC

Telephone: 020 7818 4447

 

Richard Killingbeck

Chairman

The Bankers Investment Trust PLC

Telephone: 020 7818 4233

James de Sausmarez

Director of Investment Trusts

Henderson Global Investors

Telephone: 020 7818 3349

Sarah Gibbons-Cook

Investor Relations and PR Manager

Henderson Global Investors

Telephone: 020 7818 3198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 5 of 16

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

 

 

SUMMARY OF THE YEAR

 

31 October

2013

31 October

2012

Change %

Assets




Total assets less current liabilities (£'000)

678,561      

 

551,214

+23.1

Net asset value per ordinary share

587.4p

474.5p

+23.8

Ordinary share mid-market price

580.0p

433.1p

+33.9

Discount (Share price to net asset value)

1.3%

8.7%






Revenue




Gross revenue (£'000)

19,689

19,660

+0.1

Revenue earnings per ordinary share

14.45p

14.83p

-2.6

Dividends per ordinary share in respect of the year

14.13p

13.33p

+6.0





Total Return




Total return per ordinary share

126.63p

40.42p






Ongoing Charges*

0.45%

  0.42%






Retail Prices Index

251.9

245.6

+2.6

 

* excluding borrowing costs

Source: Henderson Global Investors Ltd.

 

 

TOTAL RETURN PERFORMANCE

to 31 October 2013

1 Year

%

5 Years

%

10 Years

%

Net asset value total return *

27.3

101.5

165.3

Share price total return *

37.4

122.2

191.5





FTSE All-Share Index**

22.8

96.7

138.7

FTSE All-World Developed Europe (ex UK) Index **

33.4

84.1

159.6

FTSE World North America Index **

26.4

102.7

125.6

FTSE World Japan Index ** 

34.6

52.2

61.6

FTSE All-World Asia Pacific (ex Japan) Index ** 

11.9

136.5

244.6





Net Dividend

6.0

27.8

100.4

Retail Prices Index

2.6

15.7

37.9

 

*     Source: Morningstar for the AIC using cum income fair value NAV for one and five years and capital NAV plus

      income reinvested for ten years.

**   Source: Datastream on a total return basis and Sterling adjusted.

                                               


Page 6 of 16

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 October 2013

 


2013

2012


 

 

Notes

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

 

 

 

-

 

126,782

 

126,782

 

-

 

30,532

 

30,532

Investment income

2

19,515

-

19,515

19,535

-

19,535

Other operating income

3

174

-

174

125

-

125



---------

---------

---------

---------

---------

---------

Total income


19,689

126,782

146,471

19,660

30,532

50,192



---------

---------

---------

---------

---------

---------

Expenses








Management fees

4

(1,282)

(690)

(1,972)

(1,026)

(552)

(1,578)

Other expenses


(791)

-

(791)

(725)

-

(725)



---------

---------

---------

---------

-----------

---------

Profit before finance costs and taxation


 

17,616

 

126,092

 

143,708

 

17,909

 

29,980

 

47,889









Finance costs


(691)

(1,612)

(2,303)

(678)

(1,582)

(2,260)



---------

---------

---------

---------

-----------

---------

Profit before taxation


16,925

124,480

141,405

17,231

28,398

45,629









Taxation

5

(896)

-

(896)

(781)

-

(781)



---------

---------

---------

---------

-----------

---------

Profit for the year and total comprehensive income


 

16,029

 

124,480

 

140,509

 

16,450

 

28,398

 

44,848



=====

======

======

=====

======

======

Earnings per ordinary share - basic and diluted

6

 

14.45p

 

112.18p

 

126.63p

 

14.83p

 

25.59p

 

40.42p

 

 

The total columns of this statement represent the Statement of Comprehensive Income, prepared in accordance with IFRSs as adopted by the European Union.  The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. 

 

The figures for 2013 and 2012 are on a Company only basis, following the liquidation of the Company's wholly owned subsidiary during the year.  Previously the figures have been shown on a consolidated basis incorporating the subsidiary, therefore the 2012 figures have been recalculated on a company only basis for comparative purposes.

 

 

 

 

 

 


 

Page 7 of 16

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

STATEMENT OF CHANGES IN EQUITY

for the year ended 31 October 2013

 

 

 

Year ended

31 October 2013

 Called up

share capital

£'000

 Share premium

account

£'000

Capital  redemption

reserve

£'000

Other capital

reserves

£'000

 

 Revenue reserve

£'000

 

Total

equity

£'000

Total equity at 1 November 2012

27,727

452

12,483

454,176

31,376

526,214

Total comprehensive income:







Profit for the year

-

-

-

124,480

16,029

140,509

Transactions with owners, recorded directly to equity:







Issue of 350,000 ordinary shares

87

1,900

-

-

-

1,987

Ordinary dividends paid

-

-

-

-

(15,149)

(15,149)


----------

----------

----------

----------

----------

----------

Total equity at 31 October 2013

27,814

2,352

12,483

578,656

32,256

653,561


======

======

======

======

======

======

 

 

 

 

Year ended

31 October 2012

 

Called up

share capital

£'000

 

 Share premium

account

£'000

 

Capital  redemption

reserve

£'000

 

Other capital

reserves

£'000

 

 

Revenue reserve

£'000

 

 

Total

equity

£'000

Total equity at 1 November 2011

27,763

452

12,447

426,372

29,297

496,331

Total comprehensive income:







Profit for the year

-

-

-

28,398

16,450

44,848

Transactions with owners, recorded directly to equity:







Buy back of 145,000 ordinary shares

(36)

-

36

(594)

-

(594)

Ordinary dividends paid

-

-

-

-

(14,371)

(14,371)


-----------

-----------

----------

----------

----------

----------

Total equity at 31 October 2012

27,727

452

12,483

454,176

31,376

526,214


======

======

======

======

======

======

 


Page 8 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

 

BALANCE SHEET

as at 31 October 2013

 




 

 

2013

£'000

 

 

2012

£'000






Non-current assets





Investments held at fair value through profit or loss



655,008

546,915




----------

----------






Current assets





Investments held at fair value through profit or loss



21

1,301

Other receivables



17,800

2,251

Cash and cash equivalents



14,130

2,825




----------

----------




31,951

6,377




----------

----------

Total assets



686,959

553,292




----------

----------

Current liabilities





Bank loans



-

(1,000)

Other payables



(8,398)

(1,078)




----------

----------




(8,398)

(2,078)




----------

----------

Total assets less current liabilities



678,561

551,214




----------

----------

Non-current liabilities





Debenture stocks



(25,000)

(25,000)




----------

----------

Net assets



653,561

526,214




=======

=======






Equity attributable to equity shareholders





Share capital (note 7)



27,814

27,727

Share premium account



2,352

452

Capital redemption reserve



12,483

12,483

Retained earnings:





  Other capital reserves



578,656

454,176

  Revenue reserve



32,256

31,376




----------

----------

Total equity



653,561

526,214




======

======

Net asset value per ordinary share (pence) 

- basic and diluted (Note 8)



 

587.4p

 

474.5p




======

======






 

 

 

 

 



Page 9 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

CASH FLOW STATEMENT

for the year ended 31 October 2013

 

 

Reconciliation of profit before taxation to

net cash flow from operating activities

 

2012

£'000

 

2012

£'000




Profit before taxation

141,405

45,629

Add interest payable ('finance costs')

2,303

2,260

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

(126,782)

(30,532)

Decrease/(increase) in accrued income

239

(573)

(Increase)/decrease in other receivables

(9)

2

Increase/(decrease) in other payables

167

(123)

Purchases of investments

(137,900)

(131,873)

Sales of investments

156,843

128,980

Purchases of current asset investments

(1,500)

(22,016)

Sales of current asset investments

2,780

24,365

(Increase)/decrease in securities sold for future settlement

(16,147)

1,179

Increase/(decrease) in securities purchased for future settlement

7,153

(2,363)


------------

-----------




Net cash inflow from operating activities before interest and taxation

 

28,552

 

14,935

Interest paid

(2,303)

(2,260)

Taxation on investment income

(733)

(831)


------------

-----------

Net cash inflow from operating activities

25,516

11,844




Financing activities



Equity dividends paid

(15,149)

(14,371)

Issue/(purchase) of ordinary shares

1,987

(594)

(Repayment)/drawdown of loan

(1,000)

1,000

Amounts received from subsidiary undertaking

205

-


------------

-----------

Net cash outflow from financing activities

(13,957)

(13,965)


------------

-----------




Increase/(decrease) in cash

11,559

(2,121)

Cash and cash equivalents at start of the year

2,825

4,992

Exchange movements

(254)

(46)


------------

-----------

Cash and cash equivalents at end of the year

14,130

2,825


========

=======

 

 

 

 

 

 



Page 10 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

NOTES:

 

1.

Accounting policies


The financial statements for the year ended 31 October 2013 have been prepared in accordance with the International Financial Reporting Standards ('IFRSs') as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRSs.  IFRSs comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee ('IASC') that remain in effect, to the extent that IFRSs have been adopted by the European Union.

 

The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the revaluation of certain financial instruments at fair value through profit or loss.  The principal accounting policies adopted are set out in the audited accounts and have been applied consistently throughout the year.  Where presentational guidance set out in the Statement of Recommended Practice ('the SORP') for investment trusts issued by the Association of Investment Companies ('the AIC') in January 2009 is consistent with the requirements of IFRSs, the directors have sought to prepare the financial statements on a basis consistent with the recommendations of the SORP.

 



2013

2012

2.

Investment income

£'000

£'000


UK dividend income  - listed

8,459

8,146


UK dividend income  - special dividends

333

687


Overseas dividend income - listed

10,308

9,078


Overseas dividend income - special dividends

186

118


Property income distributions

133

320


Income from subsidiary undertaking

96

1,186



--------

--------



19,515

19,535



=====

=====


Analysis of investment income by geographical region:




UK

9,857

11,028


Europe (ex UK)

2,679

2,110


North America

2,550

2,437


Japan

1,123

1,102


Pacific (ex Japan)

3,062

2,608


Emerging markets

244

250



--------

---------



19,515

19,535



=====

=====

 

 

 

 

 

 

 

 

 

 

 

 

 



Page 11 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 



2013

2012

3.

Other operating income

£'000

£'000


Bank interest

18

17


Underwriting revenue

87

-


Stock lending revenue

69

108



--------

--------



174

125



=====

=====

 


At 31 October 2013 the total value of securities on loan by the Group for stock lending purposes was £12,134,000 (2012: £19,200,000).  The maximum aggregate value of securities on loan at any one time during the year ended 31 October 2013 was £38,775,000 (2012: £77,792,000).  The Company's agent held collateral at 31 October 2013 with a value of £12,871,000 in respect of securities on loan.  The value of securities held on loan is reviewed on a daily basis, comprising CREST Delivery By Value ('DBVs') and Government Bonds with a market value of 106% (2012: 105%) of the market value of any securities on loan.

 

 

 

 

4.

 

 

 

Management fees

Revenue return

2013

£'000

Capital

return

2013

£'000

 

Total

2013

£'000

Revenue return

2012

£'000

Capital

return

2012

£'000

 

Total

2012

£'000


Investment management

296

690

986

237

552

789


Accounting, secretarial and administration

 

986

 

-

 

986

 

789

 

-

 

789



-------

-------

-------

-------

-------

-------



1,282

690

1,972

1,026

552

1,578



====

====

====

====

====

====


 

A summary of the terms of the management agreement is given in the Strategic Review in the Annual Report and Financial Statements.

  

No performance fee was payable as it was abolished on 1 January 2013 (2012: £nil).

 

 

 

 

 

5.

 

 

 

Taxation

Revenue return

2013

£'000

Capital

return

2013

£'000

 

Total

2013

£'000

Revenue return

2012

£'000

Capital

return

2012

£'000

 

Total

2012

£'000


(a) Analysis of the charge for the year
















Overseas tax suffered

964

-

964

925

-

925


Overseas tax reclaimable

(68)

-

(68)

(120)

-

(120)


Group relief surrendered

-

-

-

(24)

-

(24)



-------

-------

-------

-------

-------

-------


Taxation

896

-

896

781

-

781



====

====

====

====

====

====

 

 

 



Page 12 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

 


(b) Factors affecting the tax charge for the year

The differences are explained below:

 



Revenue return

2013

£'000

Capital

return

2013

£'000

 

Total

2013

£'000

Revenue return

2012

£'000

Capital

return

2012

£'000

 

Total

2012

£'000


Profit before taxation

16,925

124,480

141,405

17,231

28,398

45,629



--------

-----------

-----------

--------

-----------

-----------


Corporation tax at 23.42% (2012: 24.83%)

 

3,964

 

29,153

 

33,117

 

4,279

 

7,052

 

11,331


Non taxable UK dividends

 

(2,055)

 

-

 

(2,055)

 

(2,488)

 

-

 

(2,488)


Non taxable scrip dividends and other income

 

 

(2,420)

 

 

-

 

 

(2,420)

 

 

(2,238)

 

 

-

 

 

(2,238)

 

 

Income taxable in different years

 

(7)

 

-

 

(7)

 

4

 

-

 

4


Overseas withholding tax suffered

 

896

 

-

 

896

 

805

 

-

 

805


Excess management expenses

 

518

 

539

 

1,057

 

413

 

530

 

943


Capital gains not subject to tax

 

-

 

(29,692)

 

(29,692)

 

-

 

(7,582)

 

(7,582)


Group relief

-

-

-

6

-

6



--------

-----------

-----------

--------

---------

---------



896

-

896

781

-

781



====

======

=====

====

=====

=====

 


(c) Provision for deferred taxation

No provision for deferred taxation has been made in the current year or in the prior year.  The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of investments as it is exempt from tax on these items because of its status as an investment trust company, which it intends to maintain for the foreseeable future.




(d) Factors that may affect future tax charges

The Company has not recognised a deferred tax asset totalling £4,362,000 (2012: £3,976,000) arising as a result of having unutilised non trade loan relationship deficits with a tax value of £2,997,000 (2012: £2,910,000), excess management expenses with a tax value of £1,365,000 (2012: £1,066,000) and deferred tax liability of £nil (2012: £nil) on non-reporting offshore funds.  These expenses will only be utilised if the Company has profits chargeable to corporation tax in the future.

 

The standard rate of corporation tax in the UK changed from 24% to 23% with effect from 1 April 2013.  Accordingly, the Company's profits for this accounting period are taxed at the effective rate of tax of 23.42%.

 

6.

Earnings per ordinary share


The total earnings per ordinary share is based on the net profit attributable to the ordinary shares of £140,509,000 (2012: £44,848,000) and on 110,958,620 ordinary shares (2012: 110,946,334), being the weighted average number of shares in issue during the year. 

 

 

 

 

Page 13 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

 

The total earnings can be further analysed as follows:

 



2013

2012



£'000

£'000


Revenue profit

16,029

16,450


Capital profit

124,480

28,398



----------

-----------


Profit for the year

140,509

44,848



----------

-----------






Weighted average number of ordinary shares

110,958,620

110,946,334



----------

---------------






Revenue earnings per ordinary share

14.45p

14.83p


Capital earnings per ordinary share

112.18p

25.59p



----------

-----------


Earnings per ordinary share

126.63p

40.42p



=======

=======






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

 

 

7.

 

Called up share capital

2013

£'000

2012

£'000


Authorised, allotted, issued and fully paid:




111,256,839 (2012: 110,906,839) ordinary shares of 25p each

 

27,814

 

27,727



=====

=====






During the year, 350,000 ordinary shares were issued for net proceeds of £1,987,000 (2012: 145,000 shares bought back at a cost of £594,000).

 

8.

Net asset value per ordinary share


The net asset value per ordinary share is based on net assets attributable to ordinary shares of £653,561,000 (2012: £526,214,000) and on the 111,256,839 ordinary shares in issue at 31 October 2013 (2012: 110,906,839).  The Company has no securities in issue that could dilute the net asset value per ordinary share.

 

The movements during the year in net assets attributable to the ordinary shares were as follows:

           



2013

2012



£'000

£'000


Net assets attributable to ordinary shares at start of year

526,214

496,331


Total net profit on ordinary activities after taxation

140,509

44,848


Dividends paid

(15,149)

(14,371)


Issue/(buy back) of ordinary shares

1,987

(594)



------------

------------


Net assets attributable to ordinary shares at end of year

653,561

526,214



======

=======

 

 



Page 14 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

9.

Going Concern Statement


The directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements as the assets of the Company consist mainly of securities which are readily realisable and, accordingly, that the Company has adequate financial resources to continue in operational existence for the foreseeable future. In reviewing the position as at the date of this report, the Board has considered 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', published by the Financial Reporting Council in October 2009.

 

10.

2013 Financial Information


The figures and financial information for the year ended 31 October 2013 are extracted from the Company's annual financial statements for that period and do not constitute statutory accounts.  The Company's annual financial statements for the year to 31 October 2013 have been audited but have not yet been delivered to the Registrar of Companies.  The auditors' report on the 2013 annual financial statements was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under section 498 of the Companies Act 2006.



11.

2012 Financial Information


The figures and financial information for the year ended 31 October 2012 are compiled from an extract of the published accounts for that year and do not constitute statutory accounts.  Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under sections 498(2) or 498(3) of the Companies Act 2006.



12.

Dividend


A final dividend of 3.6p per ordinary share will be paid, if approved by shareholders at the AGM, on 28 February 2014 to shareholders on the register on 31 January 2014.   The Company's shares go ex‑dividend on 29 January 2014.



13.

Annual Report and Financial Statements


Copies of the Annual Report and Financial Statements will be posted to shareholders by the end of January 2014 and will be available on the Company's website (www.bankersinvestmenttrust.com) or in hard copy format from the Registered Office, 201 Bishopsgate, London EC2M 3AE. 



14.

Annual General Meeting

The Annual General Meeting will be held on Wednesday 26 February 2014 at 12 noon at Trinity House, London, EC3N 4DH.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 15 of 16

 

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

LARGEST INVESTMENTS at 31 October 2013

The 25 largest investments (convertibles and all classes of equity in any one company being treated as one investment) were as follows:

 

 

 

Rank

 

 

(2012)


Valuation

2012

£'000

 

Purchases

£'000

Sales proceeds

£'000

 

Appreciation

£'000

Valuation

2013

£'000

1

(1)

BP

15,140

-

-

1,346

16,486

2

(3)

GlaxoSmithKline

10,704

-

-

1,984

12,688

3

(5)

Vodafone

8,927

-

-

2,984

11,911

4

(7)

HSBC

8,138

1,403

-

894

10,435

5

(11)

Sports Direct International

5,611

-

-

4,236

9,847

6

(2)

British American Tobacco

11,779

-

(3,818)

1,660

9,621

7

(6)

Catlin

8,693

-

-

753

9,446

8

(10)

Galliford Try

5,741

-

-

3,186

8,909

9

(4)

Royal Dutch Shell

9,857

-

(2,302)

3

7,558

10

(22)

ITV

4,121

-

(1,559)

4,969

7,531

11

(14)

Jardine Lloyd Thompson

4,923

-

-

1,705

6,628

12

(*)

Shire

3,835

-

-

2,217

6,052

13

(*)

Prudential

3,999

-

-

2,030

6,029

14

(15)

Amcor

4,680

-

-

1,192

5,872

15

(*)

Hyundai Motor

-

3,640

-

2,201

5,841

16

(17)

Reckitt Benckiser

4,500

-

-

1,318

5,818

17

(16)

Smiths News

4,658

-

(449)

1,557

5,766

18

(25)

Fisher (James) & Sons

4,047

-

-

1,708

5,755

19

(19)

Time Warner Cable

4,306

347

-

1,031

5,684

20

(20)

Christian Dior

4,276

-

-

1,406

5,682

21

(*)

American International Group

2,818

1,123

-

1,652

5,593

22

(13)

Rolls Royce

5,074

-

(1,413)

1,721

5,382

23

(*)

Anadarko Petroleum

3,843

-

-

1,495

5,338

24

(*)

SK Telecom

3,396

-

-

1,935

5,331

25

(8)

BG

7,229

-

(2,751)

616

5,094




-----------

-----------

-----------

-----------

-----------




150,295

6,513

(12,292)

45,781

190,297




======

======

======

======

======

 

 

These investments total 29.1% of the portfolio.

(*) Not in the top 25 last year.

 

 

 

 

 

 

Page 16 of 16

THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2013

 

CHANGES IN INVESTMENTS at 31 October 2013

 


 

 

Valuation

2012

£'000

 

 

 

Purchases£'000

 

 

Sales proceeds

£'000

 

 

Appreciation/

(depreciation) £'000

 

 

Valuation

2013

£'000

United Kingdom

248,736

27,175

(39,054)

57,836

294,693

Europe (ex UK)

59,009

14,467

(16,475)

18,176

75,177

North America

114,338

33,037

(42,421)

28,970

133,924

Japan

47,801

15,279

(14,476)

14,689

63,293

Pacific (ex Japan)

63,939

41,038

(40,874)

8,991

73,094

Emerging markets

13,009

6,904

(3,500)

(1,661)

14,752

Fixed interest

83

-

(43)

35

75


-----------

-----------

------------

-----------

-----------


546,915

137,900

(151,843)

127,036

655,008


======

======

=======

======

======

 

 

- ENDS -

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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