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Temple Bar Inv.Tst (TMPL)


Tuesday 24 February, 2015

Temple Bar Inv.Tst

Final Results

Temple Bar Investment Trust PLC

Final Results Announcement for the year ended 31 December 2014

Chairman's Statement


Following a strong performance in the previous year, 2014 was much more
difficult for our shareholders in terms both of absolute and relative returns.
The total return on the net assets of Temple Bar in 2014 was
-1.7%, which compares with a total return for the FTSE-All Share Index of 1.2%.
However, Temple Bar continues significantly to outperform its benchmark over
both 5 and 10 year periods.

There were both positive and negative constituents of performance during the
year but the performance lag was due mainly to individual stock selections that
were unsuccessful over the period, in contrast to the influence of larger
themes. As I have highlighted previously, the contrarian value approach adopted
by the Manager and his team focuses on the purchase of out of favour stocks;
these stocks can often move more out of favour after purchase, for both good
and bad reasons, in the near term. This highlights that this style of investing
requires participation over longer time periods for the proven benefits to

As in 2013, the Manager was reluctant to chase yield at a time when it appeared
to be unattractively priced. Additionally, the large number of new shares
issued towards the end of the year, and thus qualifying for the final dividend,
while being accretive to net asset value, further impacted negatively the
revenue earned per share. Offsetting these factors was the receipt of a
substantial special dividend from Direct Line which ultimately led to the
proposed dividend for the current year being fully covered by revenue generated
from portfolio investments. It remains a significant benefit of investment
trusts that revenue reserves can be used to smooth dividend payments if there
is a revenue shortfall in a particular year.

The Board is, therefore, recommending a final dividend of 23.33p, to produce a
total dividend for the year of 38.88p, an increase of 3.0%. The dividend will
be payable on 31 March 2015 to shareholders on the register at 13 March 2015.
This is the 31st consecutive year in which the dividend has been increased.

Quarterly Dividends

In accordance with previous notifications to shareholders, with effect from the
financial year which started on 1 January 2015 the Company will pay dividends
on a quarterly basis. A final dividend for the 2014 financial year will be paid
on 31 March 2015, following which there will be three interim dividends payable
in respect of the current year on 30 June, 30 September and 30 December before
a final dividend is paid in late March 2016. The Board is conscious of the
income requirements of many of its shareholders and intends, on current
expectations, that shareholders will receive payments amounting to at least
those received under the previous arrangements and that the progressive annual
dividend growth of the last 31 years will be maintained.


I mentioned in my Statement last year that the Company had taken out in 2013 an
additional £50 million private placement loan, repayable in 2028, in order to
secure attractive long term fixed rate funding at an opportune time. This loan
forms part of the Board's overall approach to debt management, mindful that one
of the Company's two debentures matures in 2017. Given the long term nature of
the loan, the Board does not feel an immediate necessity to invest the
proceeds, but will seek to deploy these funds as appropriate opportunities
arise. At the year end the Company's gearing was immunised by its holdings of
cash and related liquid assets.

New Share Issues

The Company's shares have generally been trading at a premium to net asset
value for a substantial period. The Board believes that it is important to
manage proactively any premium or discount and, accordingly, it favours regular
small issues of shares to maintain any premium at a reasonable level. During
the year a total of 3,549,517 ordinary shares were issued raising proceeds of £
42.9 million. There were no share repurchases during the year. The Board
considers that its policy towards share issuance and its preparedness to carry
out share repurchases, if required, has helped to constrain premium/discount
volatility in the past and therefore recommends that the existing authorities
to issue new ordinary shares for cash and to repurchase shares in the market
for cancellation or to hold in Treasury be continued. Accordingly, it is
seeking approval from shareholders to renew the share issue and repurchase
authorities at the forthcoming Annual General Meeting.

Alternative Investment Fund Manager Directive (`AIFMD')

In accordance with AIFMD the Company appointed Investec Fund Managers Limited
(`IFM') as its Alternative Investment Fund Manager on 21 July 2014 under a new
investment management agreement. Portfolio management has been delegated by IFM
to Investec Asset Management Limited (`IAM'), thus retaining previous portfolio
management arrangements. In addition, as required under the AIFMD, the Company
appointed HSBC Bank to act as its depositary and custodian. IAM continues to
act as Company Secretary to the Company.

Annual General Meeting

The AGM will be held at Woolgate Exchange, 25 Basinghall Street, London EC2V
5HA on 30 March 2015 at 11.00 a.m. and I would encourage shareholders to
attend. In addition to the formal business of the meeting the portfolio
manager, Alastair Mundy, will make a presentation reviewing the past year and
commenting on the outlook. He will also be available to answer any questions
alongside the Directors. Shareholders who are unable to attend the AGM in
person are encouraged to use their proxy vote.


The Manager has been concerned for some time that the regime of low interest
rates prevalent both in the UK and internationally has encouraged investors to
seek higher returns in alternative instruments and has pushed many asset prices
to levels beyond their fair value. There is potential for this `search for
yield' to end badly, exacerbated by the lack of liquidity in many markets and
the realisation by these investors that they have bought assets far more
volatile than the cash they switched from. While central bankers continue to
adopt aggressive policies, with debt worldwide having grown significantly since
the financial crisis and valuations far from cheap, the Manager expects the
turbulence of recent months to continue. It is anticipated that this will
produce some attractive investment opportunities.

John Reeve
24 February 2015

Twenty Largest Investments

as at 31 December 2014

Company                  Super Sector            Place of   Valuation      % of
                                                  listing             portfolio
UK Treasury 4.75% 2015   Fixed Interest                UK     100,401     11.49
HSBC                     Financials                    UK      76,443      8.75
Royal Dutch Shell        Oil & Gas                     UK      72,071      8.25
GlaxoSmithKline          Health Care                   UK      57,693      6.60
BP                       Oil & Gas                     UK      48,744      5.58
Grafton Group            Industrials                   UK      38,933      4.46
British American Tobacco Consumer Goods                UK      30,638      3.51
BT Group                 Telecommunications            UK      25,696      2.94
Royal Bank of Scotland   Financials                    UK      24,202      2.77
Direct Line Insurance    Financials                    UK      22,326      2.56
Lloyds Banking Group     Financials                    UK      22,031      2.52
TNT Express              Industrials          Netherlands      20,031      2.29
SIG                      Industrials                   UK      19,773      2.26
Qinetiq                  Industrials                   UK      19,521      2.23
Gold Bullion Securities  Financials                    UK      18,330      2.10
Carnival                 Consumer Services             UK      17,601      2.01
Unilever                 Consumer Goods                UK      17,001      1.95
Citigroup                Financials                   USA      16,744      1.92
Imperial Tobacco         Consumer Goods                UK      16,200      1.85
Go-Ahead                 Consumer Services             UK      13,747      1.57
                                                              678,126     77.61

Statement of Comprehensive Income

for the year ended 31 December 2014

                               2014                           2013             
                     Revenue   Capital     Total   Revenue  Capital    Total   
                       £'000     £'000     £'000     £'000    £'000    £'000   
Investment            30,262         -    30,262    26,064        -   26,064   
Other operating           12         -        12        10        -       10   
                      30,274         -    30,274    26,074        -   26,074   
on investments                                                                 
Losses/gains on            -  (29,867)  (29,867)         -  164,732  164,732   
held at fair                                                                   
value through                                                                  
profit or loss                                                                 
Total income          30,274  (29,867)       407    26,074  164,732  190,806   
Management fees      (1,315)   (1,938)   (3,253)   (1,141)  (1,711)  (2,852)   
Other expenses         (538)   (1,009)   (1,547)     (569)  (1,154)  (1,723)   
Profit/(loss)         28,421  (32,814)   (4,393)    24,364  161,867  186,231   
before finance                                                                 
costs and tax                                                                  
Finance costs        (2,639)   (3,999)   (6,638)   (2,090)  (3,163)  (5,253)   
Profit/(loss)         25,782  (36,813)  (11,031)    22,274  158,704  180,978   
before tax                                                                     
Tax                        -         -         -         -        -        -   
Profit/(loss)         25,782  (36,813)  (11,031)    22,274  158,704  180,978   
for the year                                                                   
Earnings per          39.82p  (56.86p)  (17.04p)    36.17p  257.72p  293.89p   
share (basic &                                                                 

The total column of this statement represents the Statement of Comprehensive
Income prepared in accordance with IFRS. The supplementary revenue return and
capital return columns are both prepared under guidance issued by the
Association of Investment Companies. All items in the above statement derive
from continuing operations. No operations were acquired or discontinued during
the year.

The Company does not have any income or expense that is not included in net
profit for the year. Accordingly, the net profit for the year is also the Total
Comprehensive Income for the Year, as defined in IAS1 (revised).

There are no minority interests.

Statement of Changes in Equity

for the year ended 31 December 2014

                        Ordinary       Share                                    
                           share     premium     Capital    Retained       Total
                         capital     account    reserves    earnings      equity
                           £'000       £'000       £'000       £'000       £'000
Balance at 1 January      15,138      22,105     530,413      33,535     601,191
Unclaimed dividends            -           -           -          29          29
- 12 years                                                                      
Profit for the year            -           -     158,704      22,274     180,978
Issue of share               693      31,897           -           -      32,590
Dividends paid to              -           -           -    (22,718)    (22,718)
equity shareholders                                                             
Balance at 31             15,831      54,002     689,117      33,120     792,070
December 2013                                                                   
Unclaimed dividends            -           -           -          17          17
Profit for the year            -           -    (36,813)      25,782    (11,031)
Issue of share               888      42,038           -           -      42,926
Dividends paid to              -           -           -    (24,538)    (24,538)
equity shareholders                                                             
Balance at 31             16,719      96,040     652,304      34,381     799,444
December 2014                                                                   

Statement of Financial Position

as at 31 December 2014

                                        31 December 2014      31 December 2013
                                       £'000       £'000      £'000      £'000
Non-current assets                               873,781               889,385
Investments held at fair value                                                
through profit or loss                                                        
Current assets                                                                
Receivables                            3,256                  4,087           
Cash and cash equivalents             37,225                 14,139           
                                                  40,481                18,226
Total assets                                     914,262               907,611
Current liabilities                                                           
Payables                                         (1,064)               (1,836)
Total assets less current                        913,198               905,775
Non-current liabilities                                                       
Interest bearing borrowings                    (113,754)             (113,705)
Net assets                                       799,444               792,070
Equity attributable to equity                                                 
Ordinary share capital                16,719                 15,831           
Share premium                         96,040                 54,002           
Capital reserves                     652,304                689,117           
Retained earnings                     34,381                 33,120           
                                                 799,444               792,070
Total equity                                     799,444               792,070
Net asset value per share                      1,195.47p             1,250.84p

Statement of Cash Flows

for the year ended 31 December 2014

                                            2014                 2013         
                                             £'000 £'000            £000 £'000
Cash flows from operating                                                     
(Loss)/profit before tax                        (11,031)             180,978  
Adjustments for:                                                              
Purchases of investments¹             (305,944)           (351,220)           
Sales of investments¹                   291,681             261,070           
                                                (14,263)              (90,150)
Gains/(losses) on investments                     29,867             (164,732)
Financing costs                                    6,638                 5,253
Operating cash flows before                       11,211              (68,651)
movements in working capital                                                  
Increase in accrued income                          (78)                 (332)
(Decrease)/increase in receivables                   909                 (929)
(Decrease)/increase in payables                    (460)                   779
Net cash flows from operating                     11,582              (69,133)
activities before and after income                                            
Cash flows from financing                                                     
Proceeds from issue of new shares                 42,926                32,590
4.05% Private Placement Loan                           -                50,000
Issue costs relating to 4.05%                      (313)                 (133)
Private Placement Loan                                                        
                                                      17                    29
Unclaimed dividends                                                           
                                                 (6,588)               (4,559)
Interest paid on borrowings                                                   
Equity dividends paid                           (24,538)              (22,718)
Net cash used in financing                        11,504                55,209
Net Increase/(decrease) in cash and               23,086              (13,924)
cash equivalents                                                              
Cash and cash equivalents at the                  14,139                28,063
start of the year                                                             
Cash and cash equivalents at the                  37,225                14,139
end of the year                                                               

¹ Purchases and sales of investments are considered to be operating activities
of the Company, given its purpose, rather than investing activities.


 i. The figures set out above are prepared on the same basis as set out in the
    previous year's annual accounts and are derived from the audited accounts
    of Temple Bar Investment Trust Plc for the years ended 31 December 2013 and
    31 December 2014. The 2014 accounts will be sent to shareholders shortly.
ii. The financial information contained in this announcement does not
    constitute full accounts within the meaning of Section 434 of the Companies
    Act 2006. The 2014 accounts, on which the report of the auditors is
    unqualified, will be filed with the Registrar of Companies in due course.
    The audited accounts for the year ended 31 December 2013 on which the
    report of the auditors was unqualified and did not contain a statement
    under Section 498 of the Companies Act 2006, have been filed with the
    Registrar of Companies.
24 February 2015

Contact: Alastair Mundy
Telephone 020 7597 2000
Investec Fund Managers Limited

a d v e r t i s e m e n t