TIDMNSI 
 
­NEW STAR INVESTMENT TRUST PLC 
 
         HALF YEAR RESULTS FOR THE SIX MONTHSED 31st DECEMBER 2018 
 
FINANCIAL HIGHLIGHTS 
 
INVESTMENT OBJECTIVE 
The Company's objective is to achieve long-term capital growth. 
 
                                                     31st    30th June         % 
                                                 December         2018    Change 
                                                   2018 
 
PERFORMANCE 
 
Net assets (GBP '000)                               105,502      111,366     (5.3) 
 
Net asset value per Ordinary share                148.54p      156.80p     (5.3) 
 
Mid-market price per Ordinary share               105.00p      113.00p     (7.1) 
 
Discount of price to net asset value                29.3%        27.9%       n/a 
 
                                               Six months   Six months 
                                                    ended        ended 
                                                     31st         31st 
                                                 December     December 
                                                     2018         2017 
 
Total Return*                                      -4.63%        5.38%       n/a 
 
IA Mixed Investment 40-85% Shares (total           -6.62%        4.34%       n/a 
return) 
 
MSCI AC World Index (total return, sterling        -5.47%        7.02%       n/a 
adjusted) 
 
MSCI UK Index (total return)                      -10.04%        6.79%       n/a 
 
 
 
                                       Six months ended     Six months ended 
                                          31st December        31st December 
                                                   2018                 2017 
 
REVENUE 
Return (GBP'000)                                      607                  438 
 
Return per Ordinary share                         0.85p                0.61p 
 
Proposed dividend per Ordinary share                  -                    - 
 
Dividend paid per Ordinary share                  1.00p                0.80p 
 
 
TOTAL RETURN 
 
Return (GBP'000)                                  (5,154)                5,656 
Net assets                                        -5.3%                 4.8% 
 
Net assets (dividend added back)                  -4.6%                 5.4% 
 
 
* The total return figure for the Group represents the revenue and capital 
return shown in the consolidated statement of comprehensive income before 
dividends paid as a percentage of opening NAV (the alternative performance 
measure). 
 
INTERIM REPORT 
 
CHAIRMAN'S STATEMENT 
 
PERFORMANCE 
Your Company's negative total return was 4.63% over the six months to 31st 
December 2018, leaving the net asset value (NAV) per ordinary share at 148.54p. 
By comparison, the Investment Association's Mixed Investment 40-85% Shares 
Index fell 6.62%. The MSCI AC World Total Return Index fell 5.47% while the 
MSCI UK Total Return Index fell 10.04%. Over the same period, UK government 
bonds returned 0.24%. Further information is provided in the investment 
manager's report. 
 
Your Company made a revenue return for the six months of GBP607,000 (2017: GBP 
438,000). 
 
GEARING AND DIVIDS 
Your Company has no borrowings. It ended the period under review with cash 
representing 20.79% of its NAV and is likely to maintain a significant cash 
position. Your Company has small retained revenue reserves and your Directors 
do not recommend the payment of an interim dividend (2017: nil). Your Company 
paid a dividend of 1p per share (2017: 0.8p) in November 2018 in respect of the 
previous financial year. 
 
DISCOUNT 
During the period under review, the Company's shares continued to trade at a 
significant discount to their NAV. Your Board has explored ways of reducing 
this discount but no satisfactory solution has been found. The position is, 
however, kept under continual review. 
 
OUTLOOK 
The combination of share price falls in late 2018 despite rising global 
corporate earnings left equities trading in early 2019 on lower earnings 
multiples and higher dividend yields than a year previously. Global economic 
growth has, however, slowed and is likely to slow further during 2019 and this 
may put corporate profitability under pressure. Such developments may dictate 
caution in making further commitments to global equity markets. 
 
Buying opportunities may, however, emerge over the coming months in selected 
markets. A successful resolution of the Brexit crisis may make UK equities, 
which trade on below-average valuation multiples and above-average yields, 
appear more attractive, particularly small and medium-sized companies, which 
tend to be more sensitive to domestic UK political and economic developments. A 
positive outcome to the Sino-US trade talks may also improve the prospects for 
equities in some emerging markets. 
 
Your Company ended the period positioned cautiously with respect to bond 
investments because of the likelihood of rising inflation. Instead, 
diversification away from equities is being maintained through your Company's 
holdings in dollar-denominated cash, lower-risk multi-asset funds and gold 
equities. 
 
 
NET ASSET VALUE 
Your Company's unaudited NAV at 28th February 2019 was 153.10p. 
 
Geoffrey Howard-Spink 
Chairman 
28th March 2019 
 
 
INVESTMENT MANAGER'S REPORT 
 
MARKET REVIEW 
Global equities fell 5.47% in sterling terms over the six months to 31st 
December 2018. The 10.57% fall in sterling terms during the final quarter of 
2018 more than erased the rise in the third quarter. Investors' risk-aversion 
rose as the Federal Reserve responded to low unemployment and strong US 
economic growth by raising the Fed Funds Target Rate by a quarter percentage 
point in September and a further quarter point in December, taking its range to 
2.25-2.50%. Interest rate rises are, however, not the only means by which the 
Fed has tightened monetary policy. The process of shrinking the Fed's swollen 
balance sheet is also underway, with the proceeds of maturing bonds no longer 
wholly reinvested in further purchases, allowing the Fed's bond holdings to 
reduce steadily. This is monetary tightening by another means. 
 
In October, the Fed chairman, Jerome Powell, said US interest rates had a long 
way to go to reach their neutral rate, stoking fears that the pace of monetary 
tightening would choke off growth. Following sharp share price falls, Powell 
revised his guidance in late-November, saying interest rates were close to 
neutral. In early 2019, the Fed adopted a "patient" or more dovish approach to 
monetary policy. 
 
US gross domestic product growth slowed from an annualised 3.4% in the third 
quarter of 2018 to 2.6% in the fourth quarter as the impact of President 
Trump's fiscal stimulus faded and growth is expected to slow further in 2019. 
In January 2019, US headline inflation fell to 1.6% as oil prices fell but core 
inflation excluding energy and food prices held steady at 2.2%. The Fed's 
progress towards monetary normalisation resulted in a positive real interest 
rate in contrast to the negative real interest rates that typically prevailed 
in the aftermath of the 2008-09 credit crisis. 
 
Growth also slowed in China and Beijing policy makers took measures to 
stimulate activity such as cutting the reserve requirement ratio for bank 
lending. In December, Sino-US trade discussions adjourned without resolution 
although the US extended by 90 days the deadline for raising tariffs from 10% 
to 25% on $200 billion of imports. Talks continued in early 2019. Failure to 
avert the impending tariff hike would most likely lead to weaker growth and 
higher inflation. 
 
The economic weakness in the eurozone was more pronounced. Italy went into 
recession during the period and Germany narrowly avoided the same fate. As 
result, equities in Europe excluding the UK underperformed, falling 8.19%. In 
March 2019, the European Central Bank announced more monetary support, delaying 
any interest rate rises until 2020 at the earliest. 
 
Equities in Asia excluding Japan and emerging markets fell 6.63% and 4.92% 
respectively in sterling during the period. There was, however, a wide 
disparity of returns. Brazilian shares gained 24.99% in sterling following 
presidential elections but Chinese equities fell 14.33% because of slowing 
growth and tariff concerns. Indian equities rose 3.90% in sterling but Russian 
equities declined 0.57%. 
 
UK equities underperformed, falling 10.04% on Brexit fears. The UK stockmarket 
and sterling recovered after the period end, however, despite two defeats for 
the government's Brexit deal because the likelihood of "no deal" also 
diminished. Brexit uncertainty may have weighed on the UK economy. Growth 
slowed from 1.6% to 1.3% year-on-year over the third and fourth quarters of 
2018. 
 
In an environment of slowing growth and stable inflation, global bonds and 
sterling government bonds rose 3.94% and 0.24% respectively in sterling over 
the period. Safe-haven assets were in demand during the final quarter of 2018 
when equity markets fell. Gold rose 5.60% in sterling over the period. The yen 
and the dollar also proved defensive, rising 4.65% and 3.66% respectively 
against sterling. 
 
PORTFOLIO REVIEW 
Your Company's negative return was 4.63% during the period under review. By 
comparison, the Investment Association's Mixed Investment 40-85% Shares Index, 
which measures a peer group of funds with a multi-asset approach to investing 
and a typical investment in global equities in the 40-85% range, fell 6.62%. 
The MSCI AC World Total Return Index fell 5.47% in sterling while the MSCI UK 
Total Return Index fell 10.04%. Your Company proved relatively defensive 
because of its significant holdings in safe-haven assets including dollars, 
gold securities and lower-risk multi-asset funds. 
 
The significant allocation to the dollar was a major positive contributor to 
performance over the period. The dollar rose as a result of interest rate 
increases and, more latterly, safe-haven buying. The holdings in dollar cash 
increased significantly ahead of the sharp equity market falls during the final 
quarter of 2018. Profits were taken through sales of FP Crux European Special 
Situations, Polar Capital Global Technology and the iShares S&P Financials 
exchange-traded fund (ETF). An investment in Fundsmith Equity, which has a 
concentrated portfolio of quality stocks, was the only significant purchase 
during the period. At the period end, cash represented 20.79% of your Company's 
net asset value. 
 
FP Crux European Special Situations was your Company's largest investment at 
the beginning of the period. Through sales in August and October, the 
investment more than halved. The manager of FP Crux European Special Situations 
has historically delivered strong relative returns as a result of a bias toward 
small and medium-sized companies. Europe ex-UK smaller companies underperformed 
larger peers, however, falling 15.27% in sterling over the period. FP Crux 
European Special Situations and Standard Life European Equity Income fell 
13.42% and 10.94% respectively. Blackrock Continental European Income, with its 
large-cap focus, fell only 6.85%. 
 
In late 2018, UK equities traded on lower valuation multiples and higher 
dividend yields than overseas equities. UK stocks fell over the period because 
this valuation support proved insufficient in the face of investors' Brexit 
fears and general risk aversion. Your Company's holdings in income-oriented UK 
equity funds, however, provided some resilience, with Trojan Income, Schroder 
Income and Man GLG UK Income all outperforming. Smaller companies, with their 
greater sensitivity to the domestic economy, underperformed larger peers, 
however, falling 14.84%. As a result, Aberforth Split Level Income Trust, which 
represents a geared investment in smaller stocks, fell 20.99%. A favourable 
outcome to Brexit negotiations may provide an attractive buying opportunity for 
UK equities as a whole and smaller companies in particular. In the meantime, 
these investments generate significant income for your Company. 
 
Among the holdings in Asia ex-Japan and emerging markets, Stewart Investors 
Indian Subcontinent lagged the gain by Indian equities but still rose 0.31%. 
The 33.99% oil price fall in sterling supported India's economy, which is 
heavily dependent on imported oil. Volatility may increase, however, as the 
2019 general election approaches. The HSBC Russia Capped ETF rose 0.37% over 
the period, at the end of which it yielded more than 7%. Russia's equity market 
in early 2019 was lowly valued relative to other emerging markets. JP Morgan 
Emerging Market Income was your Company's best performer over the period, 
rising 5.04%. A favourable resolution of the Sino-US trade dispute may lead to 
strong performance for some emerging markets. 
 
Diversification across different asset classes provided some protection during 
the period. In response to the rising gold price, Blackrock Gold & General 
proved relatively resilient, falling only 2.09%. The lower-risk EF Brompton 
Global Conservative and Trojan funds fell 3.07% and 1.31% respectively. Global 
bonds posted gains and Franklin Templeton Emerging Market Bond, your Company's 
highest-yielding investment, returned 0.27%. 
 
Your Company's investments in private companies helped to mitigate the impact 
of equity market falls. Embark, the largest private equity investment, 
continued on its growth path and increased its market share. Following two 
fundraisings in the final quarter of 2018, the valuation increased although it 
is held at a discount to the prices at which new shares were issued. 
 
The bias towards income funds and the interest income from dollar deposits will 
enhance your Company's ability to pay distributions because the majority of 
this income will be paid out as dividends. 
 
OUTLOOK 
Global corporate earnings rose during 2018 and this, when combined with share 
price falls, left stocks trading on lower earnings multiples at the start of 
2019. Global economic growth is likely to slow in 2019, however, putting 
earnings under pressure. The fall in valuations may not have fully reflected 
the deterioration in economic prospects and your Company has not increased its 
allocation to equities in the wake of the falls at the end of the period. A 
successful outcome to the Sino-US trade negotiations and an end to the Brexit 
impasse may, however, provide buying opportunities for equities, particularly 
in the UK and emerging markets. 
 
Your Company has minimal direct investment in bond funds. Diversification is 
achieved through investments in dollar cash, gold equities and lower-risk 
multi-asset funds. Investments in a small number of unquoted companies may 
provide an additional and uncorrelated source of potential returns. 
 
Brompton Asset Management LLP 
28th March 2019 
 
 
DIRECTORS' REPORT 
 
PERFORMANCE 
In the six months to 31st December 2018 the total return per Ordinary share was 
a negative 4.6% and the NAV decreased to  148.54p, whilst the share price 
decreased by 7.1% to 105.00p. This compares to a decrease of 6.6% in the IA 
Mixed Investment 40-85% Shares Index. 
 
INVESTMENT OBJECTIVE 
 
The Company's investment objective is to achieve long-term capital growth. 
 
INVESTMENT POLICY 
The Company's investment policy is to allocate assets to global investment 
opportunities through investment in equity, bond, commodity, real estate, 
currency and other markets. The Company's assets may have significant 
weightings to any one asset class or market, including cash. 
 
The Company will invest in pooled investment vehicles, exchange traded funds, 
futures, options, limited partnerships and direct investments in relevant 
markets. The Company may invest up to 15% of its net assets in direct 
investments in relevant markets. 
 
The Company will not follow any index with reference to asset classes, 
countries, sectors or stocks. Aggregate asset class exposure to any one of the 
United States, the United Kingdom, Europe ex UK, Asia ex Japan, Japan or 
Emerging Markets and to any individual industry sector will be limited to 50% 
of the Company's net assets, such values being assessed at the time of 
investment and for funds by reference to their published investment policy or, 
where appropriate, their underlying investment exposure. 
 
The Company may invest up to 20% of its net asset value in unlisted securities 
(excluding unquoted pooled investment vehicles) such values being assessed at 
the time of investment. 
 
The Company will not invest more than 15% of its net assets in any single 
investment, such values being assessed at the time of investment. 
 
Derivative instruments and forward foreign exchange contracts may be used for 
the purposes of efficient portfolio management and currency hedging. 
Derivatives may also be used outside of efficient portfolio management to meet 
the Company's investment objective. The Company may take outright short 
positions in relation to up to 30% of its net assets, with a limit on short 
sales of individual stocks of up to 5% of its net assets, such values being 
assessed at the time of investment.  The Company may borrow up to 30% of net 
assets for short-term funding or long-term investment purposes.  No more than 
10%, in aggregate, of the value of the Company's total assets may be invested 
in other closed-ended investment funds except where such funds have themselves 
published investment policies to invest no more than 15% of their total assets 
in other listed closed-ended investment funds. 
 
SHARE CAPITAL 
The Company's share capital comprises 305,000,000 Ordinary shares of 1p each, 
of which 71,023,695 (2017: 71,023,695) have been issued and fully paid.  No 
Ordinary shares are held in treasury, and none were bought back or issued 
during the six months to 31st December 2018. 
 
PRINCIPAL RISKS AND UNCERTAINTIES 
The principal risks identified by the Board, and the steps the Board takes to 
mitigate them, are as follows: 
 
Investment strategy: Inappropriate long-term strategy, poor asset allocation 
and manager selection could lead to underperformance.  The Board discusses 
investment performance at each of its meetings and the Directors receive 
reports detailing asset allocation, investment selection and performance. 
 
Business conditions and general economy: The Company's future performance is 
heavily dependent on the performance of different equity and currency markets. 
The Board cannot mitigate the risks arising from adverse market movements. 
However, diversification within the portfolio will reduce the impact.  Further 
information is given in portfolio risks below. 
 
Portfolio risks - market price, foreign currency and interest rate risks: The 
twenty largest investments are listed below.  Investment returns will be 
influenced by interest rates, inflation, investor sentiment, availability/cost 
of credit and general economic conditions in the UK and globally.  A proportion 
of the portfolio is in investments denominated in foreign currencies and 
movements in exchange rates could significantly affect their sterling value. 
The Investment Manager takes all these factors into account when making 
investment decisions but the Company does not normally hedge against foreign 
currency movements.  The Board's policy is to hold a spread of investments in 
order to reduce the impact of the risks arising from the above factors by 
investing in a spread of asset classes and geographic regions. 
 
Net asset value discount: The discount in the price at which the Company's 
shares trade to net asset value means that shareholders cannot realise the real 
underlying value of their investment. For a number of years the Company's share 
price has been at a significant discount to the Company's net asset value.  The 
Directors review regularly the level of discount, however given the investor 
base of the Company, the Board is very restricted in its ability to control the 
discount to net asset value. 
 
Investment Manager: The quality of the team employed by the Investment Manager 
is an important factor in delivering good performance and the loss of key staff 
could adversely affect returns. A representative of the Investment Manager 
attends each Board meeting and the Board is informed if any changes to the 
investment team employed by the Investment Manager are proposed. 
 
Tax and regulatory risks: A breach of The Investment Trust (Approved Company) 
(Tax) Regulations  2011  (the 'Regulations')  could  lead  to  capital  gains 
realised  within the portfolio becoming subject to UK capital gains tax. A 
breach of the UKLA Listing Rules could result in suspension of the Company's 
shares, while a breach of company law could lead to criminal proceedings, 
financial and/or reputational damage. The Board employs Brompton Asset 
Management LLP as Investment Manager, and Maitland Administration Services 
Limited as Secretary and Administrator, to help manage the Company's legal and 
regulatory obligations. 
 
Operational: disruption to, or failure of, the Investment Manager's or 
Administrator's accounting, dealing or payment systems or the Custodian's 
custody systems 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.  The Company receives regular reports from its contracted third 
parties. 
 
INVESTMENT MANAGEMENT ARRANGEMENT AND RELATED PARTY TRANSACTIONS 
In common with most investment trusts the Company does not have any executive 
directors or employees.  The day-to-day management and administration of the 
Company, including investment management, accounting and company secretarial 
matters, and custodian arrangements are delegated to specialist third party 
service providers. 
 
Details of related party transactions are contained in the Annual Report. 
There have been no material transactions with related parties during the period 
which have had a significant impact on the performance of the Company. 
 
GOING CONCERN 
The Directors believe that it is appropriate to continue to adopt the going 
concern basis in preparing the accounts as the assets of the Company consist 
mainly of securities that are readily realisable or cash and it has no 
significant liabilities.  Investment income exceeds annual expenditure and 
current liquid net assets cover current annual expenses for many years. 
Accordingly, the Company is of the opinion that it has adequate financial 
resources to continue in operational existence for the foreseeable future which 
is considered to be in excess of five years.  Five years is considered a 
reasonable time for investors when making their investment decisions.  In 
reaching this view the Directors reviewed the anticipated level of annual 
expenditure against the cash and liquid assets within the portfolio.  The 
Directors have also considered the risks the Company faces. 
 
AUDITORS 
The half year financial report has been reviewed, but not audited, by Ernst & 
Young LLP pursuant to the Auditing Practices Board guidance on the Review of 
Interim Financial Information. 
 
RESPONSIBILITY STATEMENT 
The financial statements contained within the half year financial report to 
31st December 2018 has been prepared in accordance with International 
Accounting Standard 34 'Interim Financial Reporting'; 
 
The Chairman's statement, Directors' report or the Investment Manager's report 
include a fair review of important events that have occurred during the first 
six months of the financial year and their impact on the financial statements; 
 
The Chairman's statement, Directors' report or the Investment Manager's report 
include a fair review of the potential risks and uncertainties for the 
remaining six months of the year; 
 
The Director's report and note 8 to the half year financial report include a 
fair review of the information concerning transactions with the investment 
manager and changes since the last annual report. 
 
By order of the Board 
 
Maitland Administration Services Limited 
28th March 2019 
 
 
 
 
SCHEDULE OF TOP TWENTY INVESTMENTS at 31st December 2018 
 
Holding                               Activity              Bid-market   % of Net 
                                                                 value     Assets 
                                                                GBP '000 
 
Fundsmith Equity Fund                 Investment Fund            6,323       5.99 
 
Embark Group                          Unquoted investment        5,007       4.75 
 
Schroder Income Fund                  Investment Fund            4,773       4.53 
 
FP Crux European Special Situations   Investment Fund            4,353       4.13 
Fund 
 
Polar Capital - Global Technology     Investment Fund            4,246       4.02 
Fund 
 
EF Brompton Global Conservative Fund  Investment Fund            3,979       3.77 
 
Aberforth Split Level Income Trust    Investment Company         3,644       3.46 
 
Artemis Global Income Fund            Investment Fund            3,486       3.30 
 
BlackRock Continental European Income Investment Fund            3,400       3.22 
Fund 
 
Aquilus Inflection Fund               Investment Fund            3,081       2.92 
 
Lindsell Train Japanese Equity Fund   Investment Fund            2,920       2.77 
 
BlackRock Gold & General Fund         Investment Fund            2,843       2.69 
 
Stewart Investors Indian Subcontinent Investment Fund            2,714       2.57 
Fund 
 
Man GLG UK Income Fund                Investment Fund            2,584       2.45 
 
EF Brompton Global Opportunities Fund Investment Fund            2,572       2.44 
 
Liontrust Asia Income Fund            Investment Fund            2,571       2.44 
 
EF Brompton Global Equity Fund        Investment Fund            2,482       2.35 
 
EF Brompton Global Growth Fund        Investment Fund            2,448       2.32 
 
MI Brompton UK Recovery Trust         Investment Fund            2,406       2.28 
 
Trojan Income Fund                    Investment Fund            2,168       2.05 
 
                                                                68,000      64.45 
 
Balance held in 21 investments                                  15,561      14.75 
 
Total investments (excluding cash)                              83,561      79.20 
Net current assets (including cash)                             21,941      20.80 
Net Assets                                                     105,502     100.00 
 
 
 
The investment portfolio can be further analysed as follows: 
 
                                                             GBP'000 
 
Investment funds                                            68,803 
 
Unquoted investments, including interest bearing loans       7,424 
of GBP250,000 Investment companies and exchange traded         6,505 
funds 
Other quoted investments 
 
The Company's investments are either unlisted or are        83,561 
unit trust/OEIC funds with the exception of Aberforth 
Split Level Income Trust, JP Morgan Emerging Markets 
Income Trust, Miton Group, Immedia Group, iShares S&P 
500 Financials Sector UCITS and HSBC MSCI Russia Capped 
UCITS ETF. 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the six months ended 31st 
December 2018 (unaudited) 
 
                                                          Six months ended 
                                                         31st December 2018 
                                                             (unaudited) 
 
                                                       Revenue  Capital    Total 
                                                        Return   Return   Return 
                                              Notes     GBP '000   GBP '000   GBP '000 
 
INCOME 
 
Investment income                                          930        -      930 
 
Other operating income                                     147        -      147 
 
Total income                                    2        1,077        -    1,077 
 
GAINS AND LOSSES ON INVESTMENTS 
 
Losses on investments at fair value through     5            -  (6,168)  (6,168) 
profit or loss 
 
Other exchange gains                                         -      405      405 
 
Trail rebates                                                -        2        2 
 
                                                         1,077  (5,761)  (4,684) 
 
EXPENSES 
 
Management fees                                 3        (339)        -    (339) 
 
Other expenses                                           (131)        -    (131) 
 
                                                         (470)        -    (470) 
 
PROFIT /LOSS) BEFORE TAX                                   607  (5,761)  (5,154) 
 
Tax                                                          -        -        - 
 
PROFIT /(LOSS) FOR THE PERIOD                              607  (5,761)  (5,154) 
 
EARNINGS PER SHARE 
 
Ordinary shares (pence)                         4        0.85p  (8.11)p  (7.26)p 
 
The total return column of this statement represents the Group's profit and 
loss account, prepared in accordance with IFRS. The supplementary Revenue 
Return and Capital Return columns are both prepared under guidance published by 
the Association of Investment Companies. All items in the above statement 
derive from continuing operations. No operations were acquired or discontinued 
during the period. 
 
All income is attributable to the equity holders of the parent company. There 
are no minority interests. 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the six months ended 31st 
December 2017 and the year ended 30th June 
2018 
 
                                      Six months ended          Year ended 
                                     31st December 2017       30th June 2018 
                                        (unaudited)             (audited) 
 
                            Notes  Revenue Capital  Total Revenue Capital  Total 
                                    Return  Return Return  Return  Return Return 
                                     GBP'000   GBP'000  GBP'000   GBP'000   GBP'000  GBP'000 
 
INCOME 
 
Investment income                      856       -    856   1,654       -  1,654 
 
Other operating income                  37       -     37     122       -    122 
 
Total income                  2        893       -    893   1,776       -  1,776 
 
GAINS AND LOSSES ON 
INVESTMENTS 
 
Gains on investments at                  -   5,601  5,601       -   6,218  6,218 
fair value through profit     5 
or loss 
 
Other exchange losses                    -   (386)  (386)       -   (176)  (176) 
 
Trail rebates                            -       3      3       -       5      5 
 
                                       893   5,218  6,111   1,776   6,047  7,823 
 
EXPENSES 
 
Management fees               3      (331)       -  (331)   (668)       -  (668) 
 
Other expenses                       (122)       -  (122)   (272)       -  (272) 
 
                                     (453)       -  (453)   (940)       -  (940) 
 
PROFIT BEFORE TAX                      440   5,218  5,658     836   6,047  6,883 
 
Tax                                    (2)       -    (2)     (5)       -    (5) 
 
PROFIT FOR THE PERIOD                  438   5,218  5,656     831   6,047  6,878 
 
EARNINGS PER SHARE 
 
Ordinary shares (pence)       4      0.61p   7.35p  7.96p   1.17p   8.51p  9.68p 
 
The total return column of this statement represents the Group's profit and 
loss account, prepared in accordance with IFRS. The supplementary Revenue 
Return and Capital Return columns are both prepared under guidance published by 
the Association of Investment Companies. All items in the above statement 
derive from continuing operations. No operations were acquired or discontinued 
during the periods. 
 
All income is attributable to the equity holders of the parent company. There 
are no minority interests. 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31st 
December 2018 (unaudited) 
 
                                     Share      Share  Special   Retained 
                                   capital    premium  reserve   earnings    Total 
                                    GBP '000     GBP '000   GBP '000     GBP '000   GBP '000 
 
At 30th JUNE 2018                      710     21,573   56,908     32,175  111,366 
 
Total comprehensive income for           -          -        -    (5,154)  (5,154) 
the period 
 
Dividend paid                            -          -        -      (710)    (710) 
 
At 31st DECEMBER 2018                  710     21,573   56,908     26,311  105,502 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31st 
December 2017 (unaudited) 
 
                                     Share      Share  Special   Retained 
                                   capital    premium  reserve   earnings    Total 
                                    GBP '000     GBP '000   GBP '000     GBP '000   GBP '000 
 
At 30th JUNE 2017                      710     21,573   56,908     25,865  105,056 
 
Total comprehensive income for           -          -        -      6,878    6,878 
the year 
 
Dividend paid                            -          -        -      (568)    (568) 
 
At 30th JUNE 2018                      710     21,573   56,908     32,175  111,366 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 30th June 2018 
(audited) 
 
                                    Share      Share   Special   Retained 
                                  capital    premium   reserve   earnings    Total 
                                   GBP '000     GBP '000    GBP '000     GBP '000   GBP '000 
 
At 30th JUNE 2016                     710     21,573    56,908     10,083   89,274 
 
Total comprehensive income for          -          -         -     15,995   15,995 
the year 
 
Dividend paid                           -          -         -      (213)    (213) 
 
At 30th JUNE 2017                     710     21,573    56,908     25,865  105,056 
 
 
CONSOLIDATED BALANCE SHEET at 31st December 2018 
 
                              Notes  31st December    31st December    30th June 
                                              2018             2017         2018 
                                       (unaudited)      (unaudited)    (audited) 
                                            GBP '000           GBP '000       GBP '000 
 
NON-CURRENT ASSETS 
 
Investments at fair value       5           83,561           97,445       96,301 
through profit or loss 
 
CURRENT ASSETS 
 
Other receivables                              213              103          272 
 
Cash and cash equivalents                   21,938           12,804       15,027 
 
                                            22,151           12,907       15,299 
 
TOTAL ASSETS                               105,712          110,352      111,600 
 
CURRENT LIABILITIES 
 
Other payables                               (210)            (208)        (234) 
 
TOTAL ASSETS LESS CURRENT                  105,502          110,144      111,366 
LIABILITIES 
 
NET ASSETS                                 105,502          110,144      111,366 
 
EQUITY ATTRIBUTABLE TO 
EQUITY HOLDERS 
 
Called-up share capital                        710              710          710 
 
Share premium                               21,573           21,573       21,573 
 
Special reserve                             56,908           56,908       56,908 
 
Retained earnings               6           26,311           30,953       32,175 
 
TOTAL EQUITY                               105,502          110,144      111,366 
 
NET ASSET VALUE PER ORDINARY    7          148.54p          155.08p      156.80p 
SHARE (PENCE) 
 
The interim report was approved and authorised for issue by the Board on 28th 
March 2019. 
 
 
CONSOLIDATED CASH FLOW STATEMENT for the six months ended 31st December 2018 
 
                                             Six months    Six months        Year 
                                                  ended         ended       ended 
                                          31st December 31st December   30th June 
                                                   2018          2017        2018 
                                            (unaudited)   (unaudited)   (audited) 
                                                 GBP '000        GBP '000      GBP '000 
 
NET CASH INFLOW FROM OPERATING ACTIVITIES           644           421         673 
 
INVESTING ACTIVITIES 
 
Purchase of investments                         (2,023)       (9,516)    (16,016) 
 
Sale of investments                               8,595         9,402      17,663 
 
NET CASH INFLOW/(OUTFLOW) FROM INVESTING 
ACTIVITIES                                        6,572         (114)       1,647 
FINANCING 
 
Equity dividend paid                              (710)         (568)       (568) 
 
NET CASH INFLOW/(OUTFLOW) AFTER FINANCING         6,506         (261)       1,752 
 
INCREASE /(DECREASE) IN CASH                      6,506         (261)       1,752 
 
RECONCILIATION OF NET CASH FLOW TO 
MOVEMENT IN NET FUNDS 
 
Increase/(Decrease) in cash resulting             6,506         (261)       1,752 
from cash flows 
 
Exchange movements                                  405         (386)       (176) 
 
Movement in net funds                             6,911         (647)       1,576 
 
Net funds at start of period/year                15,027        13,451      13,451 
 
NET FUNDS AT OF PERIOD/YEAR                  21,938        12,804      15,027 
 
RECONCILIATION OF (LOSS)/PROFIT BEFORE 
FINANCE COSTS AND TAXATION TO NET CASH 
FLOW FROM OPERATING ACTIVITIES 
 
(Loss)/Profit before finance costs and          (5,154)         5,658       6,883 
taxation * 
 
Loss/(gains) on investments                       6,168       (5,601)     (6,218) 
 
Exchange differences                              (405)           386         176 
 
Management fee rebates                              (2)           (3)         (5) 
 
Revenue profit before finance costs and             607           440         836 
taxation 
 
Decrease/(Increase) in debtors                       59           (7)       (187) 
 
(Decrease)/increase in creditors                   (24)           (2)          24 
 
Taxation                                              -          (13)         (5) 
 
Management fee rebates                                2             3           5 
 
NET CASH INFLOW FROM OPERATING ACTIVITIES           644           421         673 
 
* Includes dividends received in cash of GBP788,000 (30th June 2018: GBP1,164,000) 
(2017: GBP542,000), accumulation income of GBP255,000 (30th June 2018: GBP381,000) 
(2017: GBP335,000) and interest income of GBP84,000 (30th June 2018: GBP42,000) 
(2017: GBP30,000) 
 
NOTES TO THE INTERIM FINANCIAL STATEMENTS for the six months ended 31st 
December 2018 
 
1.  ACCOUNTING POLICIES 
 
The condensed consolidated interim financial statements comprise the unaudited 
results of the Company and its subsidiary, JIT Securities Limited (together 
"the Group"), for the six months to 31st December 2018.  The comparative 
information for the six months to 31st December 2017 and the year to 30th June 
2018 are a condensed set of accounts and do not constitute statutory accounts 
under the Companies Act 2006. Full statutory accounts for the year to 30th June 
2018 included an unqualified audit report, did not contain any statements under 
section 498 of the Companies Act 2006, and have been filed with the Registrar 
of Companies. 
 
The half year financial statements have been prepared in accordance with 
International Accounting Standard 34 'Interim Financial Reporting', and are 
presented in pounds sterling, as this is the Group's functional currency. 
 
The same accounting policies have been followed in the interim financial 
statements as applied to the accounts for the year ended 30th June 2018, which 
were prepared in accordance with IFRSs as adopted by the European Union, as 
updated for the adoption of IFRS 9 and IFRS 15.  These standards have not had a 
material effect since: 
 
 a. The majority of the financial instruments of the Group were previously 
    designated at fair value through profit or loss under IAS 39 and continue 
    to be classified as carried at fair value through profit or loss under IFRS 
    9.  The accounting for the financial instruments carried at fair value 
    through profit or loss has not changed under the new standard. 
 b. The revenue earned by the Group is not under the scope of IFRS 15. 
 
No segmental reporting is provided as the Group is engaged in a single segment. 
 
2.   TOTAL INCOME 
 
                                          Six months    Six months   Year ended 
                                          ended 31st    ended 31st    30th June 
                                       December 2018 December 2017         2018 
                                               GBP'000         GBP'000 
                                                                          GBP'000 
 
Income from Investments 
 
UK net dividend income                           792           765        1,481 
 
Unfranked investment income                      138            91          173 
 
                                                 930           856        1,654 
 
Other Income 
 
Bank interest receivable                         140            31          111 
 
Loan interest income                               7             6           11 
 
                                                 147            37          122 
 
 
 
                                          Six months    Six months   Year ended 
                                          ended 31st    ended 31st    30th June 
                                       December 2018 December 2017         2018 
                                               GBP'000         GBP'000 
                                                                          GBP'000 
 
Total income comprises 
 
Dividends                                        930           856        1,654 
 
Other income                                     147            37          122 
 
                                               1,077           893        1,776 
 
3.   MANAGEMENT FEES 
 
                                          Six months    Six months   Year ended 
                                          ended 31st    ended 31st    30th June 
                                       December 2018 December 2017         2018 
                                               GBP'000         GBP'000 
                                                                          GBP'000 
 
Investment management fee                        339           331          668 
 
Performance fee                                    -             -            - 
 
                                                 339           331          668 
 
The Investment Manager receives a management fee, payable quarterly in arrears, 
equivalent to an annual 0.75 per cent of total assets after the deduction of 
the value of any investments managed by the Investment Manager or its 
associates (as defined in the investment management agreement). The Investment 
Manager is also entitled to a performance fee of 15% of the growth in net 
assets over a hurdle of 3-month Sterling LIBOR plus 1% per annum, payable six 
monthly in arrears, subject to a high water mark. The aggregate of the 
Company's management fee and any performance fee is subject to a cap of 4.99% 
of net assets in any financial year (with any performance fee in excess of this 
cap capable of being earned in subsequent periods). The performance fee will be 
charged 100% to capital, in accordance with the Board's expectation of how any 
out-performance will be generated.  No performance fee is payable for the 
period. 
 
4.   RETURN PER ORDINARY SHARE 
 
                                          Six months    Six months   Year ended 
                                          ended 31st    ended 31st    30th June 
                                       December 2018 December 2017         2018 
                                               GBP'000         GBP'000 
                                                                          GBP'000 
 
Revenue return                                   607           438          831 
 
Capital return                               (5,761)         5,218        6,047 
 
Total return                                 (5,154)         5,656        6,878 
 
Weighted average number of Ordinary       71,023,695    71,023,695   71,023,695 
shares 
 
Revenue return per Ordinary share              0.85p         0.61p        1.17p 
 
Capital return per Ordinary share            (8.11)p         7.35p        8.51p 
(before dividend) 
 
Total return per Ordinary share              (7.26)p         7.96p        9.68p 
(before dividend) 
 
5.   INVESTMENTS AT FAIR VALUE THROUGH PROFIT AND LOSS 
 
                                                 At           At              At 
                                               31st         31st       30th June 
                                           December     December            2018 
                                               2018         2017           GBP'000 
                                              GBP'000        GBP'000 
 
GROUP AND COMPANY                            83,561       97,445          96,301 
 
ANALYSIS OF INVESTMENT 
 
PORTFOLIO - GROUP AND COMPANY 
 
Six months ended 31st December 2018 
 
                                            Listed*   Unlisted**           Total 
                                       (level 1 and    (level 3) 
                                                 2)        GBP'000               GBP 
                                              GBP'000                         '000 
 
Opening book cost                            61,574        7,582          69,156 
 
Opening investment holding gains/            29,351      (2,206)          27,145 
(losses) 
 
Opening valuation                            90,925        5,376          96,301 
 
Movement in period: 
 
Purchase at cost                              1,701          322           2,023 
 
Sales 
 
- Proceeds                                  (8,595)            -         (8,595) 
 
- Realised gains on sales                     4,168            -           4,168 
 
Movement in investment holding gains/      (12,062)        1,726        (10,336) 
(losses) 
 
Closing valuation at 31 December 2018        76,137        7,424          83,561 
 
Closing book cost                            58,848        7,904          66,752 
 
Closing investment holding gains/            17,289        (480)          16,809 
(losses) 
 
Closing valuation                            76,137        7,424          83,561 
 
* Listed investments include unit trust and OEIC funds which are valued at 
quoted prices. Included within Listed Investments is one monthly valued level 2 
investment of GBP3,081,000 (30th June 2018: GBP3,562,000) (2017: GBP3,527,000). 
 
** The Unlisted investments, representing approximately 7% of the Company's 
NAV, have been valued in accordance with IPEVC valuation guidelines. The 
largest unquoted investment amounting to GBP5,007,000 (30th June 2018: GBP 
3,268,000) (2017: GBP3,268,000) was valued at the latest transaction price, 
discounted. The second largest investment has been valued based on an offer 
price.  A 10% increase or decrease in the earnings of the largest investment 
would not have a material impact on the valuation of the investment.  This 
investment has not reached maturity and is not valued on the basis of its 
current earnings. 
 
There were no reclassifications for assets between Level 1, 2 and 3. 
 
                                            Six months    Six months        Year 
                                                 ended         ended       ended 
                                         31st December 31st December   30th June 
                                                  2018          2017        2018 
                                                 GBP'000         GBP'000       GBP'000 
 
ANALYSIS OF CAPITAL GAINS AND LOSSES 
 
Realised gains on sales of investments           4,168         4,447       7,457 
 
Increase in investment holding (losses)/      (10,336)         1,154     (1,239) 
gains 
 
                                               (6,168)         5,601       6,218 
 
6.   RETAINED EARNINGS 
 
                                                   At            At          At 
                                        31st December 31st December   30th June 
                                                 2018          2017        2018 
                                                GBP'000         GBP'000       GBP'000 
 
Capital reserve - realised                      8,339           925       3,764 
 
Capital reserve - revaluation*                 16,809        29,155      27,145 
 
Revenue reserve                                 1,163           873       1,266 
 
                                               26,311        30,953      32,175 
 
* The Capital reserve-revaluation includes unrealised currency gains/(losses) 
of GBP(402,000), GBP383,000 and GBP174,000 respectively. 
 
7.   NET ASSET VALUE PER ORDINARY SHARE 
 
                                       31st December 31st December    30th June 
                                                2018          2017         2018 
                                               GBP'000         GBP'000        GBP'000 
 
Net assets attributable to Ordinary          105,502       110,144      111,366 
shareholders 
 
Ordinary shares in issue at end of        71,023,695    71,023,695   71,023,695 
period 
 
Net asset value per Ordinary share           148.54p       155.08p      156.80p 
 
8.   TRANSACTIONS WITH THE INVESTMENT MANAGER 
 
During the period there have been no new related party transactions that have 
affected the financial position or performance of the Group. 
 
Since 1st January 2010 Brompton has acted as Investment Manager to the Company. 
This relationship is governed by an agreement dated 23rd December 2009. 
 
Mr Duffield is the senior partner of Brompton Asset Management Group LLP the 
ultimate parent of Brompton. 
 
The total investment management fee payable to Brompton for the half year ended 
31st December 2018 was GBP339,000 (30th June 2018: GBP668,000) (2017: GBP331,000) and 
at the half year GBP164,000 (30th June 2018: GBP173,000) (2017: GBP167,000) was 
accrued. No performance fee was payable in respect of the six months ended 31st 
December 2018 (30th June 2018: GBPnil) (2017: GBPnil). 
 
The Group's investments include seven funds managed by Brompton or its 
associates valued at GBP18,001,000 (30th June 2018: GBP19,331,000) (2017: GBP 
19,501,000).  No investment management fees were payable directly by the 
Company in respect of these investments. 
 
 
 
END 
 

(END) Dow Jones Newswires

March 28, 2019 13:53 ET (17:53 GMT)

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