TIDMBKW TIDMBKWB
RNS Number : 4953I
Brookwell Limited
12 March 2010
BROOKWELL LIMITED
Announcement of half-yearly results for the six months to 31 December 2009
Investment objective
To realise value from a portfolio of AIM and Listed Securities and progressively
return cash to shareholders.
Financial highlights
+---------------------------------------+-----------+------------+
| | A Shares | B Shares |
+---------------------------------------+-----------+------------+
| Amount raised in placings | GBP25.5 | GBP13.0 |
| | million | million |
+---------------------------------------+-----------+------------+
| Amount returned to shareholders in | GBP2.7 | GBP5.5 |
| the six months ended 31 December 2009 | million | million |
+---------------------------------------+-----------+------------+
| Amount returned to shareholders in | GBP8.2 | GBP7.9 |
| the period from admission of shares | million | million |
| to trading on AIM ("Admission")* to | | |
| 31 December 2009 | | |
+---------------------------------------+-----------+------------+
| Number of securities acquired in the | 84 | 62 |
| placing | | |
| | | |
+---------------------------------------+-----------+------------+
| Number of securities at 31 December | 13 | 21 |
| 2009 | | |
| | | |
+---------------------------------------+-----------+------------+
| Net asset value per Share at | 97.00p | 96.60p |
| Admission** | | |
| | | |
+---------------------------------------+-----------+------------+
| Net asset value per Share at 31 | 56.38p | 114.09p |
| December 2009 | | |
| | | |
+---------------------------------------+-----------+------------+
| Weighted average net asset value*** | 49.54p | 112.56p |
| at 31 December 2009 | | |
| | | |
+---------------------------------------+-----------+------------+
* The A Shares were admitted to trading on AIM on 26 June 2008 and the B Shares
were admitted to trading on AIM on 19 February 2009.
** after share issue expenses
*** net assets and cash returned to shareholders
shares issued in placing
CHAIRMAN'S STATEMENT
Brookwell Limited ('Brookwell') or ('the Company') has had a very successful
period, returning GBP8.2 million in aggregate to its investors on 30 December
2009. The Investment Manager has continued to be extremely active with both the
A and B Share portfolios. While the market has strengthened, liquidity has
remained relatively low, as concerns about the UK economy, in particular
excessive consumer and government borrowing, have meant investor sentiment has
been marked by caution. The recent concerns about sovereign debt, following the
issues in Dubai, have spread to the Greek and other Latin Mediterranean
economies, with the UK's economy being mentioned in the same breath. At the same
time the UK banking crisis continues to cause liquidity issues for many UK
smaller companies. Investors are increasingly aware that bank refinancings are
often proving to be not only more expensive but also time consuming. Despite
this background the Company was successful in finding liquidity and realising
value for investors.
On 30 December 2009 the Company returned GBP2.7 million to A shareholders
through the pro rata redemption of 4,774,523 A Shares at a price of 56.55p per A
Share. This means that, to date, GBP8.2 million has been returned in aggregate,
approximately 32 per cent of the placing value of the issued A Shares.
The Net Asset Value ("NAV") per A Share, as at 31 December 2009, was 56.38p
and the number of holdings had been reduced to 13 from 25, at 30 June 2009.
Subsequently the NAV per A Share at 5 March 2010 was 56.98p and the number
of holdings in the A portfolio had been reduced further to 11. A significant
part of the A Share cash redemption at 30 December 2009 was due to the
acceptance and settlement of the cash offer for Claimar Care, one of the largest
holdings. The Investment Manager had been very active indeed on this holding,
including successfully proposing the appointment of a non-executive director,
which greatly assisted the Claimar Care board with the application of a
strategic review. Despite the recent deteriorating market conditions, progress
has continued and the A Share Class fund held cash and cash equivalents of
GBP0.7 million at 5 March 2010.
On 30 December GBP5.5 million was returned to B shareholders through the
pro rata redemption of 4,814,839 B Shares at a price of 114.23p per B Share.
This means that GBP7.9 million has been returned to date representing
approximately 61 per cent of the placing value of B Shares issued. The NAV per B
Share at 31 December 2009 was 114.09p and a number of holdings had been reduced
from 36 to 21.
Subsequently the NAV at 5 March 2010 was 115.82p and the number of holdings
was further reduced to 15. The B Share Class fund held cash and cash equivalents
of GBP1.9 million.
The next pro rata redemptions for the A Shares and B Shares are scheduled for
the end of June 2010.
Further details on disposals and stock performance for the respective A
Share and B Share portfolios are provided in the Investment Manager's report.
Concentration of stock values within the portfolios tends to occur at this stage
in the life of most work-out funds and Brookwell is no exception to this rule.
Summary profiles of the key holdings are given in the Investment Manager's
report.
Continued economic uncertainties suggest that many of the investee companies
will face a challenging year in 2010. Following the above reported performance
however, I remain confident that the Investment Manager will continue to
identify and exploit opportunities to extract liquidity and value wherever
possible.
CHRISTOPHER CLARK
12 March 2010
INVESTMENT MANAGER'S REPORT
The recovery in the AIM Index since the year end (30 June 2009) may have made
some realisations easier, but liquidity in many micro cap companies (sub GBP50
million market cap), which dominate both portfolios, remains very difficult. In
addition, whilst global equity markets have rallied, the general economic and
banking environments still contain significant uncertainties.
Despite the rally in the UK equity market, the economic reality is that the UK
economy continued to lag its international peers over the period and reported
modest growth in GDP in the quarter to 31 December 2009. With no material
resource stocks, both portfolios have a heavy exposure to the domestic UK
economy and therefore the trading background for many of the holdings remained
challenging during the period under review.
A Share portfolio
At the end of June 2009 the number of holdings in the A portfolio had been
reduced from an initial 84 to 25. By the end of December 2009 further progress
had been made in realising value and liquidity and at the period end an
additional 12 stocks had been sold, reducing the number of investments to 13.
As flagged in the Annual Report & Accounts, Claimar Care attracted an agreed bid
which went wholly unconditional during the period under review. The final bid
of 39p in cash represented a 30 per cent premium to our cost price, and was more
than five times its 7.25p recent low. At the time the bid went unconditional,
Claimar Care represented 30 per cent of the A portfolio. The good progress made
on realisations inevitably has resulted in a further increase in the
concentration within the portfolio, with the top 3 holdings (see below)
accounting for more than 72 per cent of net assets at 31 December.
Inland: this company specialises in purchasing and developing brown field sites
in the South East of England. It has recently announced some attractive
disposals which were realised at prices significantly above book value and
generated free cash flow;
Hotel Corporation: an owner, not an operator, of UK hotels which successfully
renegotiated its bank facilities and raised GBP20 million of new equity;
Shieldtech: this company is a specialist in homeland security, providing body
armour, mainly to UK police forces and the Ministry of Defence. It was
re-financed in June 2009 and has returned to profitability at the operating
level.
The number of holdings in the A Share portfolio has been reduced further to 11
and the top 3 holdings represented 81 per cent of the net assets as at 5 March
2010.
B Share portfolio
At the end of June 2009 the number of holdings in the B portfolio had been
reduced from an initial 62 to 36. By the end of December 2009 an additional 15
stocks had been sold, reducing the number of investments to 21.
During the period, the investment in Fusion IP was sold on the back of a
successful fund raising and benefited from an agreed bid for Medical House. The
Chairman of Medical House, who owned 34 per cent of the company, appears to have
been concerned about the pressures being applied to small suppliers and the
difficult outlook for the UK economy; views we shared.
As with the A portfolio, the continued reduction in the number of holdings has
resulted in a further concentration in the portfolio, with the top 3 holdings
(see below) accounting for 48 per cent of the net assets at 31 December 2009.
The two largest holdings, Noble Investments and Futura Medical have both
performed well, ironically increasing the portfolio concentration. Since 31
December 2009 we have sold more than a quarter of the original holdings in both
companies.
Noble Investments: owns specialist coin and stamp dealers. Noble Investments is,
in our opinion, a well run, conservative business with a very strong balance
sheet. Unusually for an AIM company, Noble is not only profitable, but also
pays a dividend. We have been impressed by both the quality of the management
and the results delivered to date;
Futura Medical: this pharmaceutical company develops innovative products for
consumer healthcare aimed mainly at the "Over The Counter" sexual health and
topical pain relief markets. It is in the final stages of developing a product
for distribution by SSL International plc. It is well financed, having raised
approximately GBP1.5 million in November 2009;
Patsystems: provides high-performance electronic trading and exchange systems
and risk management tools. Despite uncertainty in financial service markets over
the last couple of years Patsystems has delivered impressive financial results
and looks to be capable of achieving further growth over the next two years.
Since the period end the number of holdings in the B Share portfolio has been
reduced by a further 6 holdings to 15 and the top 3 holdings represented 54 per
cent of the net assets as at 5 March 2010.
Whilst recent economic data suggests the UK recession has finally ended, we
remain cautious about the pace of the recovery. Nonetheless we continue to
explore all opportunities to realise further value for Shareholders.
Progressive AIM Realisation Limited
12 March 2010
DETAILS OF INDIVIDUAL HOLDINGS
+-----------------------------------------+------------+-----------+------------+
| A Share portfolio | Percentage | By | Percentage |
| | of | valuation | of |
| | relevant | GBP'000 | Portfolio |
| As at 31 December 2009 | capital | | (%) |
| | owned | | |
+-----------------------------------------+------------+-----------+------------+
| | | | |
+-----------------------------------------+------------+-----------+------------+
| Company | | | |
+-----------------------------------------+------------+-----------+------------+
| Inland | 5.3% | 1,501 | 36.0% |
+-----------------------------------------+------------+-----------+------------+
| Hotel Corporation | 2.0% | 1,000 | 24.0% |
+-----------------------------------------+------------+-----------+------------+
| Shieldtech | 15.5% | 703 | 16.9% |
+-----------------------------------------+------------+-----------+------------+
| The Mission Marketing | 2.5% | 200 | 4.8% |
+-----------------------------------------+------------+-----------+------------+
| Dawson International | 5.1% | 171 | 4.1% |
+-----------------------------------------+------------+-----------+------------+
| DCD Media | 3.5% | 159 | 3.8% |
+-----------------------------------------+------------+-----------+------------+
| Rotala | 0.9% | 142 | 3.4% |
+-----------------------------------------+------------+-----------+------------+
| Western & Oriental | 1.7% | 98 | 2.3% |
+-----------------------------------------+------------+-----------+------------+
| Real Good Food Company | 3.0% | 77 | 1.8% |
+-----------------------------------------+------------+-----------+------------+
| CareCapital Group | 2.6% | 55 | 1.3% |
+-----------------------------------------+------------+-----------+------------+
| Top ten holdings | | 4,106 | 98.4% |
+-----------------------------------------+------------+-----------+------------+
| Other holdings | | 65 | 1.6% |
+-----------------------------------------+------------+-----------+------------+
| Total holdings | | 4,171 | 100.0% |
+-----------------------------------------+------------+-----------+------------+
+-----------------------------------------+------------+-----------+------------+
| B Share portfolio | Percentage | By | Percentage |
| | of | valuation | of |
| | relevant | GBP'000 | Portfolio |
| As at 31 December 2009 | capital | | (%) |
| | owned | | |
+-----------------------------------------+------------+-----------+------------+
| | | | |
+-----------------------------------------+------------+-----------+------------+
| Company | | | |
+-----------------------------------------+------------+-----------+------------+
| Noble Investments UK | 9.4% | 1,443 | 22.4% |
+-----------------------------------------+------------+-----------+------------+
| Futura Medical | 4.8% | 1,197 | 18.6% |
+-----------------------------------------+------------+-----------+------------+
| Patsystems | 1.6% | 586 | 9.1% |
+-----------------------------------------+------------+-----------+------------+
| Cello Group | 2.9% | 478 | 7.4% |
+-----------------------------------------+------------+-----------+------------+
| Digital Marketing Group | 1.4% | 417 | 6.4% |
+-----------------------------------------+------------+-----------+------------+
| Plant Impact | 4.3% | 336 | 5.2% |
+-----------------------------------------+------------+-----------+------------+
| Armour Group | 3.5% | 320 | 5.0% |
+-----------------------------------------+------------+-----------+------------+
| Portrait Software | 1.3% | 281 | 4.4% |
+-----------------------------------------+------------+-----------+------------+
| Prologic | 8.0% | 240 | 3.7% |
+-----------------------------------------+------------+-----------+------------+
| Individual Restaurant Company | 2.7% | 215 | 3.3% |
+-----------------------------------------+------------+-----------+------------+
| Top ten holdings | | 5,513 | 85.5% |
+-----------------------------------------+------------+-----------+------------+
| Other holdings | | 937 | 14.5% |
+-----------------------------------------+------------+-----------+------------+
| Total holdings | | 6,450 | 100.0% |
+-----------------------------------------+------------+-----------+------------+
INCOME STATEMENTS
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Company | | Unaudited | Unaudited |
+-----------------+----------+--------------------------------+---------------------------------+
| | | 6 months to 31 December | 28 May 2008 to 31 December |
| | | 2009 | 2008 |
+-----------------+----------+--------------------------------+---------------------------------+
| | | Revenue | Capital | Total | Revenue | Capital | Total |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Gains/(losses) on investments designated at fair value through profit or loss |
+-----------------------------------------------------------------------------------------------+
| Disposal of | | - | 1,006 | 1,006 | - | (1,792) | (1,792) |
| investments | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Investments | | - | 2,189 | 2,189 | - | (11,835) | (11,835) |
| held | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Net | | - | 3,195 | 3,195 | - | (13,627) | (13,627) |
| investment | | | | | | | |
| gains/ | | | | | | | |
| (losses) | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Investment | | 37 | - | 37 | 185 | - | 185 |
| income | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Investment | | (133) | (228) | (361) | (86) | (86) | (172) |
| management | | | | | | | |
| fees | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Other | | (173) | - | (173) | (158) | - | (158) |
| expenses | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| (Loss)/profit | | (269) | 2,967 | 2,698 | (59) | (13,713) | (13,772) |
| on ordinary | | | | | | | |
| activities | | | | | | | |
| before | | | | | | | |
| taxation | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| Taxation | | (11) | - | (11) | - | - | - |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| (Loss)/profit | | (280) | 2,967 | 2,687 | (59) | (13,713) | (13,772) |
| attributable | | | | | | | |
| to | | | | | | | |
| shareholders | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| (Loss)/earnings | | | | | (0.23p) | (53.80)p | (54.03)p |
| per A Share | | (0.97)p | 15.02p | 14.05p | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| | | | | | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
| (Loss)/earnings | | | | | n/a | n/a | n/a |
| per B Share | | (1.47)p | 10.03p | 8.56p | | | |
+-----------------+----------+---------+---------+------------+----------+-----------+----------+
The total column of this statement represents the Company's Income Statement,
prepared under IFRS. The revenue and capital columns, including the revenue and
capital earnings per share data, are supplementary information prepared under
guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the period.
The Company was incorporated on 28 May 2008 and its A Shares commenced trading
on AIM on 26 June 2008 and the B Shares commenced trading on AIM on 19 February
2009.
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| A Share | | Unaudited | Unaudited |
+-----------------+----------+-----------------------------+-----------------------------------+
| | | 6 months to 31 December | 28 May 2008 to 31 December 2008 |
| | | 2009 | |
+-----------------+----------+-----------------------------+-----------------------------------+
| | | Revenue | Capital | Total | Revenue | Capital | Total |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| Gains/(losses) on investments designated at fair value through profit or loss |
+----------------------------------------------------------------------------------------------+
| Disposal | | - | (488) | (488) | - | (1,792) | (1,792) |
| of | | | | | | | |
| investments | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| Investments | | - | 2,463 | 2,463 | - | (11,835) | (11,835) |
| held | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| Net | | - | 1,975 | 1,975 | - | (13,627) | (13,627) |
| investment | | | | | | | |
| gains/ | | | | | | | |
| (losses) | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| Investment | | 20 | - | 20 | 185 | - | 185 |
| income | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| Investment | | (77) | (77) | (154) | (86) | (86) | (172) |
| management | | | | | | | |
| fees | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| Other | | (62) | - | (62) | (158) | - | (158) |
| expenses | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| (Loss)/profit | | (119) | 1,898 | 1,779 | (59) | (13,713) | (13,772) |
| on ordinary | | | | | | | |
| activities | | | | | | | |
| before | | | | | | | |
| taxation | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| Taxation | | (4) | - | (4) | - | - | - |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| (Loss)/profit | | (123) | 1,898 | 1,775 | (59) | (13,713) | (13,772) |
| attributable | | | | | | | |
| to | | | | | | | |
| shareholders | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| | | | | | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
| (Loss)/earnings | | | | | (0.23p) | (53.80)p | (54.03)p |
| per A Share | | (0.97)p | 15.02p | 14.05p | | | |
+-----------------+----------+---------+---------+---------+----------+------------+-----------+
+------------------------------+----------+------------+-------------+------------+
| B Share | | Unaudited |
+------------------------------+----------+---------------------------------------+
| | | 6 months to 31 December 2009 |
+------------------------------+----------+---------------------------------------+
| | | Revenue | Capital | Total |
+------------------------------+----------+------------+-------------+------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+----------+------------+-------------+------------+
| | | | | |
+------------------------------+----------+------------+-------------+------------+
| Gains/(losses) on investments designated at fair value through profit or loss |
+---------------------------------------------------------------------------------+
| Disposal of investments | | - | 1,494 | 1,494 |
+------------------------------+----------+------------+-------------+------------+
| Investments held | | - | (274) | (274) |
+------------------------------+----------+------------+-------------+------------+
| Net investment gains | | - | 1,220 | 1,220 |
+------------------------------+----------+------------+-------------+------------+
| | | | | |
+------------------------------+----------+------------+-------------+------------+
| Investment income | | 17 | - | 17 |
+------------------------------+----------+------------+-------------+------------+
| Investment management fees | | (56) | (151) | (207) |
+------------------------------+----------+------------+-------------+------------+
| Other expenses | | (111) | - | (111) |
+------------------------------+----------+------------+-------------+------------+
| (Loss)/profit on ordinary | | (150) | 1,069 | 919 |
| activities before taxation | | | | |
+------------------------------+----------+------------+-------------+------------+
| | | | | |
+------------------------------+----------+------------+-------------+------------+
| Taxation | | (7) | - | (7) |
+------------------------------+----------+------------+-------------+------------+
| (Loss)/profit attributable | | (157) | 1,069 | 912 |
| to shareholders | | | | |
+------------------------------+----------+------------+-------------+------------+
| | | | | |
+------------------------------+----------+------------+-------------+------------+
| (Loss)/earnings per B Share | | | | |
| | | (1.47)p | 10.03p | 8.56p |
+------------------------------+----------+------------+-------------+------------+
There are no comparatives as the B Shares commenced trading on AIM on 19
February 2009.
BALANCE SHEETS
+----------+--------------------------------+------------+------------+-------------+
| | | Unaudited | | |
| | | | Unaudited | Audited |
+----------+--------------------------------+------------+------------+-------------+
| | Company | At 31 | At 31 | At 30 June |
| | | December | December | 2009 |
| | | 2009 | 2008 | GBP'000 |
| | | GBP'000 | GBP'000 | |
+----------+--------------------------------+------------+------------+-------------+
| | | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Non-current assets | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Investments designated at fair | 10,621 | 6,804 | 16,112 |
| | value through profit and loss | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Current assets | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Sales for future settlement | - | - | 31 |
+----------+--------------------------------+------------+------------+-------------+
| | Other receivables | 2 | 25 | 47 |
+----------+--------------------------------+------------+------------+-------------+
| | Cash and cash equivalents | 824 | 652 | 656 |
+----------+--------------------------------+------------+------------+-------------+
| | | 826 | 677 | 734 |
+----------+--------------------------------+------------+------------+-------------+
| | Total assets | 11,447 | 7,481 | 16,846 |
+----------+--------------------------------+------------+------------+-------------+
| | Current liabilities | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Other payables | 313 | 94 | 199 |
+----------+--------------------------------+------------+------------+-------------+
| | | 313 | 94 | 199 |
+----------+--------------------------------+------------+------------+-------------+
| | Total | 11,134 | 7,387 | 16,647 |
+----------+--------------------------------+------------+------------+-------------+
| | Capital and reserves | | | |
| | attributable to shareholders | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Share capital and share | 21,180 | 21,159 | 29,380 |
| | premium | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Capital reserve - disposal of | (6,501) | (1,878) | (7,279) |
| | investments | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Capital reserve - investments | (3,057) | (11,835) | (5,247) |
| | held | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Revenue reserve | (488) | (59) | (207) |
+----------+--------------------------------+------------+------------+-------------+
| | Total shareholders' funds | 11,134 | 7,387 | 16,647 |
+----------+--------------------------------+------------+------------+-------------+
+----------+--------------------------------+------------+------------+-------------+
| | | Unaudited | | |
| | | | Unaudited | Audited |
+----------+--------------------------------+------------+------------+-------------+
| | A Share | At 31 | At 31 | At 30 June |
| | | December | December | 2009 |
| | | 2009 | 2008 | GBP'000 |
| | | GBP'000 | GBP'000 | |
+----------+--------------------------------+------------+------------+-------------+
| | | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Non-current assets | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Investments designated at fair | 4,171 | 6,804 | 5,090 |
| | value through profit and loss | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Current assets | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Sales for future settlement | - | - | - |
+----------+--------------------------------+------------+------------+-------------+
| | Other receivables | 1 | 25 | 33 |
+----------+--------------------------------+------------+------------+-------------+
| | Cash and cash equivalents | 344 | 652 | 314 |
+----------+--------------------------------+------------+------------+-------------+
| | | 345 | 677 | 347 |
+----------+--------------------------------+------------+------------+-------------+
| | Total assets | 4,516 | 7,481 | 5,437 |
+----------+--------------------------------+------------+------------+-------------+
| | Current liabilities | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Other payables | 71 | 94 | 67 |
+----------+--------------------------------+------------+------------+-------------+
| | | 71 | 94 | 67 |
+----------+--------------------------------+------------+------------+-------------+
| | Total | 4,445 | 7,387 | 5,370 |
+----------+--------------------------------+------------+------------+-------------+
| | Capital and reserves | | | |
| | attributable to shareholders | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Share capital and share | 16,560 | 21,159 | 19,260 |
| | premium | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Capital reserve - disposal of | (8,189) | (1,878) | (7,623) |
| | investments | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Capital reserve - investments | (3,630) | (11,835) | (6,094) |
| | held | | | |
+----------+--------------------------------+------------+------------+-------------+
| | Revenue reserve | (296) | (59) | (173) |
+----------+--------------------------------+------------+------------+-------------+
| | Total shareholders' funds | 4,445 | 7,387 | 5,370 |
+----------+--------------------------------+------------+------------+-------------+
| | Net assets per A Share | 56.38p | 43.03p | 42.42p |
+----------+--------------------------------+------------+------------+-------------+
| | Number of A Shares in issue | 7,883,850 | 17,168,210 | 12,658,373 |
+----------+--------------------------------+------------+------------+-------------+
+----------+-------------------------------------+--------------+------------+
| | | Unaudited | |
| | | | Audited |
+----------+-------------------------------------+--------------+------------+
| | B Share | At 31 | At 30 |
| | | December | June 2009 |
| | | 2009 | GBP'000 |
| | | GBP'000 | |
+----------+-------------------------------------+--------------+------------+
| | | | |
+----------+-------------------------------------+--------------+------------+
| | Non-current assets | | |
+----------+-------------------------------------+--------------+------------+
| | Investments designated at fair | 6,450 | 11,022 |
| | value through profit and loss | | |
+----------+-------------------------------------+--------------+------------+
| | Current assets | | |
+----------+-------------------------------------+--------------+------------+
| | Sales for future settlement | - | 31 |
+----------+-------------------------------------+--------------+------------+
| | Other receivables | 1 | 14 |
+----------+-------------------------------------+--------------+------------+
| | Cash and cash equivalents | 480 | 342 |
+----------+-------------------------------------+--------------+------------+
| | | 481 | 387 |
+----------+-------------------------------------+--------------+------------+
| | Total assets | 6,931 | 11,409 |
+----------+-------------------------------------+--------------+------------+
| | Current liabilities | | |
+----------+-------------------------------------+--------------+------------+
| | Other payables | 242 | 132 |
+----------+-------------------------------------+--------------+------------+
| | | 242 | 132 |
+----------+-------------------------------------+--------------+------------+
| | Total | 6,689 | 11,277 |
+----------+-------------------------------------+--------------+------------+
| | Capital and reserves attributable | | |
| | to shareholders | | |
+----------+-------------------------------------+--------------+------------+
| | Share capital and share premium | 4,620 | 10,120 |
+----------+-------------------------------------+--------------+------------+
| | Capital reserve - disposal of | 1,688 | 344 |
| | investments | | |
+----------+-------------------------------------+--------------+------------+
| | Capital reserve - investments held | 573 | 847 |
+----------+-------------------------------------+--------------+------------+
| | Revenue reserve | (192) | (34) |
+----------+-------------------------------------+--------------+------------+
| | Total shareholders' funds | 6,689 | 11,277 |
+----------+-------------------------------------+--------------+------------+
| | Net assets per B Share | 114.09p | 105.61p |
+----------+-------------------------------------+--------------+------------+
| | Number of B Shares in issue | 5,862,692 | 10,677,531 |
+----------+-------------------------------------+--------------+------------+
The B Shares commenced trading on 19 February 2009. Therefore, there is no
comparative data as at 31 December 2008.
STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
+----------------------------+----------+-------------+------------+-----------+
| Company | | Unaudited | | Audited |
| | | | Unaudited | |
+----------------------------+----------+-------------+------------+-----------+
| | | 6 months to | 28 May | 28 May |
| | | | 2008 to | 2008 to |
+----------------------------+----------+-------------+------------+-----------+
| | | 31 December | 31 | 30 June |
| | | 2009 | December | 2009 |
| | | | 2008 | |
+----------------------------+----------+-------------+------------+-----------+
| | | | | |
+----------------------------+----------+-------------+------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+----------+-------------+------------+-----------+
| | | | | |
+----------------------------+----------+-------------+------------+-----------+
| Opening shareholders' | | 16,647 | | - |
| funds | | | - | |
+----------------------------+----------+-------------+------------+-----------+
| Issue of shares | | - | 25,525 | 38,486 |
+----------------------------+----------+-------------+------------+-----------+
| Share issue expenses | | - | (766) | (1,206) |
+----------------------------+----------+-------------+------------+-----------+
| Purchases and redemption | | (8,200) | (3,600) | (7,900) |
| of shares | | | | |
+----------------------------+----------+-------------+------------+-----------+
| Profit/(loss) for the | | 2,687 | | (12,733) |
| period | | | (13,772) | |
+----------------------------+----------+-------------+------------+-----------+
| Closing shareholders' | | 11,134 | | 16,647 |
| funds | | | 7,387 | |
+----------------------------+----------+-------------+------------+-----------+
| | | | | |
+----------------------------+----------+-------------+------------+-----------+
+----------------------------+----------+-------------+------------+-----------+
| A Shares | | Unaudited | | Audited |
| | | | Unaudited | |
+----------------------------+----------+-------------+------------+-----------+
| | | 6 months to | 28 May | 28 May |
| | | | 2008 to | 2008 to |
+----------------------------+----------+-------------+------------+-----------+
| | | 31 December | 31 | 30 June |
| | | 2009 | December | 2009 |
| | | | 2008 | |
+----------------------------+----------+-------------+------------+-----------+
| | | | | |
+----------------------------+----------+-------------+------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+----------+-------------+------------+-----------+
| | | | | |
+----------------------------+----------+-------------+------------+-----------+
| Opening shareholders' | | 5,370 | | - |
| funds | | | - | |
+----------------------------+----------+-------------+------------+-----------+
| Issue of shares | | - | 25,525 | 25,525 |
+----------------------------+----------+-------------+------------+-----------+
| Share issue expenses | | - | (766) | (765) |
+----------------------------+----------+-------------+------------+-----------+
| Purchases and redemption | | (2,700) | (3,600) | (5,500) |
| of shares | | | | |
+----------------------------+----------+-------------+------------+-----------+
| Profit/(loss) for the | | 1,775 | | (13,890) |
| period | | | (13,772) | |
+----------------------------+----------+-------------+------------+-----------+
| Closing shareholders' | | 4,445 | | 5,370 |
| funds | | | 7,387 | |
+----------------------------+----------+-------------+------------+-----------+
+----------------------------+----------+-------------+-------------+
| B Shares | | Unaudited | Audited |
+----------------------------+----------+-------------+-------------+
| | | 6 months to | 28 May 2008 |
| | | | to |
+----------------------------+----------+-------------+-------------+
| | | 31 December | 30 June |
| | | 2009 | 2009 |
+----------------------------+----------+-------------+-------------+
| | | | |
+----------------------------+----------+-------------+-------------+
| | | GBP'000 | GBP'000 |
+----------------------------+----------+-------------+-------------+
| | | | |
+----------------------------+----------+-------------+-------------+
| Opening shareholders' | | 11,277 | - |
| funds | | | |
+----------------------------+----------+-------------+-------------+
| Issue of shares | | - | 12,961 |
+----------------------------+----------+-------------+-------------+
| Share issue expenses | | - | (441) |
+----------------------------+----------+-------------+-------------+
| Purchases and redemption | | (5,500) | (2,400) |
| of shares | | | |
+----------------------------+----------+-------------+-------------+
| Profit for the period | | 912 | 1,157 |
+----------------------------+----------+-------------+-------------+
| Closing shareholders' | | 6,689 | 11,277 |
| funds | | | |
+----------------------------+----------+-------------+-------------+
CASH FLOW STATEMENTS
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| | | Unaudited | Unaudited |
+----------------------+----------+-----------------------------+-----------------------------+
| | | 6 months to 31 | 28 May 2008 to 31 |
| | | December 2009 | December 2008 |
+----------------------+----------+-----------------------------+-----------------------------+
| | | A | B | Company | A | B | Company |
| | | Share | Share | | Share | Share | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Operating activities | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Cash inflow from | | 49 | 25 | 74 | 165 | - | 165 |
| investment income | | | | | | | |
| and interest | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Cash outflow from | | (214) | (209) | (423) | (241) | - | (241) |
| management and other | | | | | | | |
| expenses | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Cash inflow from | | 2,895 | 5,822 | 8,717 | 5,094 | - | 5,094 |
| disposal of | | | | | | | |
| investments | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Net cash inflow from | | 2,730 | 5,638 | 8,368 | 5,018 | - | 5,018 |
| operating activities | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Financing | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Expenses of issue of | | - | - | - | (766) | - | (766) |
| share capital | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Payments to purchase | | (2,700) | (5,500) | (8,200) | (3,600) | - | (3,600) |
| own shares | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Net cash outflow | | (2,700) | (5,500) | (8,200) | (4,366) | - | (4,366) |
| from financing | | | | | | | |
| activities | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Increase in cash and | | 30 | 138 | 168 | 652 | - | 652 |
| cash equivalents | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Opening balance | | 314 | 342 | 656 | - | - | - |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Cash flow | | 30 | 138 | 168 | 652 | - | 652 |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| Closing balance | | 344 | 480 | 824 | 652 | - | 652 |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
| | | | | | | | |
+----------------------+----------+---------+---------+---------+---------+---------+---------+
NOTES
1 Status
The Company is a closed-ended investment company incorporated and resident in
Guernsey.
2 Accounting policies
The Company presents its accounts in accordance with applicable International
Financial Reporting Standards ("IFRS"). The Company has also taken the guidance
of Statement of Recommended Practice issued by the Association of Investment
Companies into account to the extent that it is appropriate and compatible with
IFRS.
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2009, as described in those
annual financial statements.
3 Comparatives
The Company was incorporated on 28 May 2008 and its A Shares commenced trading
on AIM on 26 June 2008. The B Shares commenced trading on AIM on 19 February
2009.
4 Investments
Investments are listed on the London Stock Exchange or quoted on AIM. All
investments have been classified at "fair value through profit and loss". At
the period end all listed and quoted investments have been valued at market bid
prices at that time. Securities, whose listings have been suspended, have been
valued at fair value as determined by the directors.
5 Investment management fees
In accordance with the policy stated in the Company's admission document of June
2008 one half of basic and capital return fees have been charged to capital and
the entirety of the equity appreciation fee has been charged to capital.
+--------------+---------+----------+---------+---------+---------+---------+
| | 31 December 2009 | 31 December 2008 |
+--------------+------------------------------+-----------------------------+
| | Revenue | Capital | Total | Revenue | Capital | Total |
+--------------+---------+----------+---------+---------+---------+---------+
| Investment | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| management | | | | | | |
| fees | | | | | | |
+--------------+---------+----------+---------+---------+---------+---------+
| Basic | 96 | 96 | 192 | 68 | 68 | 136 |
+--------------+---------+----------+---------+---------+---------+---------+
| Capital | 37 | 37 | 74 | 18 | 18 | 36 |
| return fee | | | | | | |
+--------------+---------+----------+---------+---------+---------+---------+
| Equity | - | 95 | 95 | - | - | - |
| appreciation | | | | | | |
| fee | | | | | | |
+--------------+---------+----------+---------+---------+---------+---------+
| Total | 133 | 228 | 361 | 86 | 86 | 172 |
+--------------+---------+----------+---------+---------+---------+---------+
6 Share capital and Share premium
The Company's issued share capital consists entirely of A Shares, B Shares and
two Founders Shares of GBP1 nominal value each. The Founders Shares have
negligible rights. The A Shares and B Shares are participating redeemable
preference shares of no par value and both share classes are admitted to trading
on AIM. Further details of the share issues and redemptions for each of the A
Share and B Share class are set out below.
A Shares
Issue of A Shares
Pursuant to the AIM Admission Document dated 6 June 2008 the Company:-
a) On 26 June 2008, allotted 25,226,853 A Shares, all of which were
issued for consideration in the form of investments received. The total
consideration was GBP25,226,853.
b) On 17 July 2008 allotted a further 297,890 A Shares, all of which
were issued for consideration in the form of investments received. The total
consideration was GBP297,890.
Redemptions of A Shares
Pro-rata redemptions of A Shares
On 31 December 2008, 8,356,533 A Shares were redeemed at a price of 43.08p per
share. On 30 June 2009 4,509,837 A Shares were redeemed at a price of 42.13p
per share. On 30 December 2009 4,774,523 A Shares were redeemed at a price of
56.55p per share.
There were 7,883,850 A Shares in issue at 31 December 2009.
B Shares
Issue of B Shares
Pursuant to the AIM Admission Document dated 15 January 2009 the Company:-
a) On 17 February 2009, allotted 12,372,932 B Shares, all of which
were issued for consideration in the form of investments received. The total
consideration was GBP12,372,932.
b) On 12 March 2009 allotted a further 587,912 B Shares, all of
which were issued for consideration in the form of investments received. The
total consideration was GBP587,912.
Redemption of B Shares
Pro-rata redemptions of B Shares
In June 2009 the Company redeemed 2,283,313 B Shares at a price of 105.11p per B
Share. On 30 December 2009 4,814,839 B Shares were redeemed at a price of
114.23p per share.
There were 5,862,692 B Shares in issue at 31 December 2009.
7 Net assets per Share
Net assets per Share figures are based on the number of A Shares and B Shares in
issue at the end of the period.
8 Earnings per Share
A Share
Earnings per A Share is based on the gain of GBP1,775,000 (2008: loss of
GBP13,772,000) attributable to the weighted average of 12,632,425 (2008:
25,591,644) A Shares of no par value in issue during the period.
B Share
Earnings per B Share is based on the gain of GBP912,000 attributable to the
weighted average of 10,651,363 B Shares of no par value in issue during the
period.
9 Taxation
The Company is resident for tax purposes in Guernsey.
With effect from 1 January 2008, Guernsey abolished the exempt company regime.
However, the Company continues to apply for exempt status under the Income Tax
(Exempt Bodies) (Guernsey) Ordinances 1989 and 1992 and is charged an annual
exemption fee of GBP600.
The tax charges shown in the Income Statements relate to overseas tax on
dividend income.
10. Status of this report
These unaudited financial statements are not the Company's statutory accounts.
The half-yearly report will be sent to shareholders and copies will be made
available to the public at the registered office of the Company and at the
address of the UK Administration Agent and at the Company's website:
www.brookwelllimited.com. The Annual Report for the period ended 30 June 2009
received an unqualified audit report and was sent to shareholders during October
2009 and filed with the Guernsey Financial Services Commission on 18 December
2009.
The half-yearly report was approved by the Board of directors on 12 March 2010.
For further information please contact:
Brookwell Limited
Patrick Farmcombe (Legis Corporate Services Limited - Company Secretary) Tel:
01481 726 034
Progressive AIM Realisation Limited (Investment manager)
Robert Legget / Ross Courtier Tel: 020 7566 5550
Deloitte LLP (Nominated adviser)
Jonathan Hinton / James Lewis Tel: 020 7936 3000
Marshall Securities Limited (Broker)
Robert Luetchford / John Webb Tel: 020 7490 3788
Website: www.brookwelllimited.com
12 March 2010
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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