Rights and Issues Investment Trust PLC (RIII)
Rights and Issues Investment Trust PLC: IR-Half-yearly Results
01-Aug-2023 / 16:25 GMT/BST
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RIGHTS AND ISSUES INVESTMENT TRUST PLC
For the six months ended 30th June 2023
A copy of the Company's Half Yearly Financial Report for the six months ended 30th June 2023 will shortly be available
to view and download from www.jupiteram.com/rightsandissues. Neither the contents of this website nor the contents of
any website accessible from hyperlinks on this website (or any other website) is incorporated into or forms part of
this announcement.
Printed copies of the Report will be made available to shareholders shortly. Additional copies may be obtained from the
Corporate Secretary - Apex Fund Administration Services (UK) Limited, Hamilton Centre, Rodney Way, Chelmsford, Essex
CM1 3BY.
INTERIM DIVID
An interim dividend of 11.75p per share has been approved by the Board and is payable on 25th September 2023 to
shareholders on the register as at 25th August 2023 (ex-dividend 24th August 2023).
The following text is copied from the Half Yearly Financial Report.
HALF YEARLY FINANCIAL REPORT
for the six months ended 30th June 2023
Financial Highlights
Financial Highlights for the six months to 30th June 2023
Capital Performance
30th June 31st December
2023 2022
Total assets less current liabilities (GBP'000 137,081 140,783
Ordinary Share Performance
30th June 31st December
2023 2022 % change
Mid market price (p) 2,020.0 1,890.0 +6.9
Net asset value (p) 2,333.8 2,283.2 +2.2
FTSE All-Share Index 4,096.4 4,075.1 +0.5
Dividends per share (p) 11.75 40.0
Discount to net asset value (%)* 13.5 17.2
Ongoing charges ratio (%)* 0.8 0.5
*For definitions of the above Alternative Performance Measures please refer to the Glossary of Terms in the Half Yearly
Report
Market Data
30th June
2023
Issued share capital (Ordinary shares of 25p each) 5,873,611
Total investment return+ 3.5%
Total shareholder return++ 8.4%
Annualised dividend yield 2.0%
+Source: Jupiter, Morningstar
++Source: Trustnet
Chairman's Statement
Market backdrop
Market conditions in the first six months of 2023 can probably
be best described as weak and volatile; against the background of
the devastating war in Ukraine, we have seen other geopolitical
tensions emerge on a regular basis and we are frequently reminded
that the path to recovery from the pandemic will not be simple.
Whilst energy prices seem to be easing, the UK is facing a number
of unique challenges not seen in other developed economies with
borrowing costs at a 16 year high, record wage growth and
persistently high core inflation.
Net asset value and share price returns
Against this background, the Company's net asset value per share
increased from 2283.2p to 2333.8p, an increase of 2.2% over the
six- month period, compared with an 0.5% increase in the FTSE All
Share index. Including dividends, the Company has delivered a total
investment return of 3.5% for the period.
Portfolio changes
Dan Nickols and Matt Cable, our portfolio managers at Jupiter,
have made a number of significant changes to the Company's
investment portfolio in terms of holdings and concentration since
they were appointed, and in the last six months they added four new
positions to the portfolio whilst disposing of the four 'tail'
positions. The full details of the changes are provided in the
Investment Manager's Review.
Jupiter's appointment
Whilst it is still less than 12 months since the appointment of
Jupiter as investment manager, the Board is pleased with the level
of engagement with the managers and with the progress made in
repositioning the portfolio. The first formal review of Jupiter's
performance will take place during the Management Engagement
Committee following the anniversary of their appointment on 3rd
October 2022.
Discount control
At 30th June 2023, the discount to net assets stood at 13.5%, an
improvement from the 17.2% at year-end. That said, discounts across
the sector continue to be volatile and on 26th July, being the
latest practicable date prior to publication of this report, the
Company's discount has widened to 16.6%. During the period, the
Company bought back 292,378 shares for cancellation, which added an
estimated 0.8% to net asset value per share.
Having discussed possible alternative discount management
mechanisms, the Board has concluded that the continuation of the
existing buyback arrangement for a period of 12 months will be in
the best interests of shareholders, providing liquidity for those
shareholders seeking to sell, whilst delivering a modest economic
uplift to those shareholders wishing to remain invested. It is
hoped that the Company's inclusion in the FTSE Russell Index,
effective from 19th June, will similarly help improve
liquidity.
Share split
Conscious that shareholders were not able to vote on a
resolution to approve a proposed 10:1 share split at this year's
AGM, the Board has consulted with, and received feedback from,
certain key shareholders and has concluded that, whilst the merits
of such a scheme are unlikely to have universal support, it is
appropriate to offer all shareholders a vote on this issue.
Therefore, it intends to do so when most economically cost
effective and this is likely to be at the 2024 AGM.
Dividends
The Directors are equally conscious of the importance of income
to shareholders and therefore the Company will be paying an interim
dividend of 11.75p per share, an increase of 9.3%, payable to
shareholders on 25th September 2023.
Board succession
I was appointed to the Board in May 2011 and have now served for
12 years. Due to a change in my own personal circumstances I shall
retire from the Board on 31st August 2023. Upon retirement I am
delighted to report that Dr Andrew Hosty will become Chair; Andrew
has been a director since July 2017 and brings a wealth of
experience and knowledge to the position.
Outlook
Inflation is proving more persistent than expected and interest
rates will likely continue at higher levels for longer, dampening
consumer confidence. Such macro-economic headwinds can impact upon
share prices in the short term but fundamental value should be
reflected across a longer timeframe as quality companies will
deliver superior performance. The Company's long-term record is
strong and the Directors believe Jupiter is well placed to continue
to deliver the Board's successful high conviction strategy.
David M Best
Chairman
1st August 2023
You can view or download copies of the Half Yearly and the
Annual Reports from the Company's website at
www.jupiteram.com/rightsandissues
The Half Yearly Report will also be made available to
shareholders and copies are available at the registered office of
the Company on request.
Investment Manager's Review
Introduction
We are pleased to present our investment report for the first
half of 2023 to shareholders of the Company. As mentioned in the
Chairman's statement above it has been another period of heightened
volatility in global markets, with the FTSE All-Share index ending
the half broadly flat but experiencing significant gains and losses
along the way. With that backdrop we are pleased to have generated
a positive investment return for the period as well as strong
shareholder returns as the Company's discount has narrowed. We have
also made good progress in adjusting the structure of the portfolio
in the way we highlighted in the annual report and as further
discussed below.
Market backdrop
The UK equity market enjoyed a strong start to the year as
investors took the view that inflation was likely to moderate and
central banks would therefore take a less hawkish approach to
interest rates. As the outlook for inflation deteriorated through
the half this view became less credible and markets gave up their
earlier gains. In addition, the market had to digest the fallout
from the collapse of Silicon Valley Bank in the US and the rescue
of Credit Suisse in Switzerland.
While the direct effects of these developments on companies and
earnings appear to be limited so far, the market seems to be
increasingly convinced that a period of lower growth or even
outright recession is likely in the UK.
Performance
In the context of a weak and volatile market we are pleased that
the Company has delivered a total investment return (NAV return
with dividends added back of 2.1%) of 3.5% (Source: Jupiter,
Morningstar) for the period. Furthermore, a narrowing of the
Company's discount resulted in a total shareholder return (share
price return with dividends added back of 6.6%) of 8.4% (Source:
Trustnet).
Given the concentrated nature of the portfolio, investment
performance is generally a consequence of stock selection. Over the
period there were a number of positive and negative contributors to
performance, including:
Hill & Smith (+30%)
As a provider of infrastructure-related products and services,
Hill & Smith is well placed to benefit from increased
government spending across its regions, in particular the USA. The
market's anticipation of higher profits was confirmed in a trading
statement in May which pointed to a stronger than expected outlook
for the year.
Renold (+31%)
Manufacturer of industrial chains and transmissions, Renold
experienced a period of strong trading and issued two positive
trading statements during the half. In addition, rising interest
rates are expected to help reduce Renold's pension deficit, which
has previously been seen as a negative for the share price.
Carr's Group (+24%)
Following a period of significant change which saw Carr's
dispose of its distribution business to focus on agricultural
supplies and engineering, the market has taken a more positive view
of the company's prospects. The shares were suspended for a time
early in the year due to audit delays but have performed strongly
since.
Videndum (-34%)
Manufacturer of products for the content creation markets,
Videndum has seen significant levels of de-stocking in its
retail-oriented channels and, more recently, weakness in
professional markets resulting from the writers' strikes in
Hollywood. While these issues are frustrating, we view both as
ultimately transitory and are therefore retaining our holding in
Videndum.
Spirent (-40%)
A recent addition to the portfolio (see below), Spirent is
exposed to strong medium to long term growth drivers from the
transition to newer mobile technologies (5G) and higher network
data speeds. Unfortunately, these longer term trends have been
interrupted by a period of caution among Spirent's customers which
will result in lower short term growth. While this is negative for
the share price in the near term, we remain positive on the
longer-term opportunity.
Portfolio changes
In the last annual report we said that we planned to retain the
Company's concentrated approach but reduce the proportion of the
portfolio in the very largest positions. We also said that we
wanted to introduce new holdings which would improve the
portfolio's balance from a sector perspective.
At the start of the year the Company held positions in 22 stocks
with the top five positions accounting for 50% of NAY and the top
ten for 76%. On 30th June the Company held 21 stocks with the top
five accounting for 41% of NAY and the top ten for 67%. While
portfolio construction is always a dynamic process and further
changes are likely, we are now broadly happy with the shape of the
portfolio.
As part of the portfolio restructuring we have reduced the size
of some of our largest positions. For example the largest position
in the portfolio is now 10.6% of NAY, down from 12.6% at the start
of the year. We have also disposed of some of the 'tail' of
holdings with very low market capitalisations, including Titon
Holdings (GBP8m market cap) and Coral Products (GBP14m market cap).
We also sold the Company's tiny residual holding in Costain and
some preference shares issued by Santander which we felt did not
fit the Company's stated objectives. Finally, we disposed of the
holding in Castings which we felt offered limited valuation
upside.
We have added four new positions to the portfolio over the first
half of the year.
OSB Group (GBP2bn market cap)
OSB is the UK's largest specialist buy-to-let mortgage lender.
It benefits from a state-of-the-art lending platform, strong
deposit base and a balance sheet free of legacy pre-financial
crisis loans. OSB is very well capitalised and consistently
generates excellent returns, allowing the company to return capital
to shareholders through ordinary and special dividends as well as a
share buy-back programme. As well as a compelling growth and
valuation case, OSB brings exposure to financial services and UK
consumer cyclicality, which was previously a significant
underweight in the portfolio.
Spirent (GBP1bn market cap)
As referenced above, Spirent is a global provider of testing
equipment and software for the telecommunications industry. Its
structural growth drivers include the expansion of 5G technology
and the ever-higher demands for speed in networks and data centres.
Some short-term disruption to the 5G market, especially in the US,
has resulted in a moderation to immediate growth expectations, but
we see the long-term drivers as fully intact. Spirent is very well
capitalised, with over USD200m of net cash on its balance
sheet.
Gresham Technologies (GBP118m market cap)
Gresham is a software business tightly focussed on the market
for advanced data reconciliation. Selling primarily into the
financial services sector, Gresham addresses the ever-increasing
need to fully reconcile large, complex datasets, often across
multiple systems and in real time. This has allowed them to
consistently take market share with their long-term
subscription-based products around the world. We see the growth and
valuation case as highly attractive and, along with Spirent
(above), an important source of exposure to technology for the
portfolio.
Marshalls (GBP610m market cap)
Marshalls is one of the UK's leading providers of heavy building
materials such as blocks, stone and concrete roofing tiles. It
sells into the new-build housing, commercial, infrastructure and
repair and maintenance markets. The well publicised challenges in
some of these markets in recent months have led to a significant
decline in Marshalls' share price which we believe now represents a
significant opportunity for long-term investors to invest in an
excellent business at a very attractive valuation. The inherent
uncertainty in timing the bottom of the cycle means we have started
the holding at a modest position size, with a view to building it
as the path of recovery becomes clearer.
Summary and Outlook
While inflation in the UK remains stubbornly high, it is hard to
see a short-term catalyst to bring the market back into favour with
investors. However the UK, and smaller companies in particular,
remain very modestly valued compared to both international peers
and their own history. Meanwhile economic conditions do not appear
to be causing significant problems for companies beyond moderately
weaker growth rates in the near term. As such, we see the current
valuation environment as an opportunity for investors with a longer
investment horizon and the patience to wait for the market to
change.
We are pleased with progress on adjusting the shape of the
portfolio and introducing a greater degree of sectoral balance.
Over the coming months we will continue this process at a
considered pace while looking for further opportunities to invest
in good businesses at attractive valuations.
Dan Nickols Lead Manager Matt Cable Fund Manager 1st August
2023
Portfolio Statement
30th June 2023 31st December 2022
Market Market
Value Value % of Net
% of Net Assets
GBP'000 Assets GBP'000
Holdings Holdings
UK Investments
Vp 2,450,000 14,333 10.46 2,450,000 16,170 11.49
Macfarlane 12,680,653 13,695 9.99 17,250,000 17,509 12.44
Colefax 1,605,000 11,636 8.49 1,606,500 9,639 6.85
Treatt 1,281,009 7,994 5.83 2,012,000 12,535 8.90
Hill & Smith 522,465 7,847 5.72 1,246,286 14,606 10.37
Renold 28,745,000 7,819 5.70 30,000,000 6,240 4.43
Telecom Plus 459,113 7,759 5.66 263,070 5,774 4.10
Gamma Communications 640,919 7,319 5.34 640,919 6,935 4.93
Alpha Group International 336,513 7,067 5.16 98,611 1,824 1.30
Carr's 4,750,000 6,840 4.99 4,750,000 5,629 4.00
OSB 1,401,694 6,725 4.91 - - -
Spirax-Sarco Engineering 59,668 6,182 4.51 94,415 10,022 7.12
IMI 292,263 4,790 3.49 292,263 3,764 2.67
Morgan Advanced Materials 1,500,000 4,110 3.00 1,500,000 4,718 3.35
RS 464,401 3,530 2.58 838,870 7,512 5.34
Eleco 4,520,781 3,481 2.54 4,520,781 3,029 2.15
Videndum 479,791 3,320 2.42 500,000 5,370 3.81
Gresham Technologies 2,360,303 3,186 2.32 - - -
Spirent Communications 1,322,052 2,163 1.58 - - -
Marshalls 780,016 1,877 1.37 - - -
Dyson 1,000,000 41 0.03 1,000,000 41 0.03
Castings* - - - 400,000 1,384 0.98
Titon* - - - 1,265,000 886 0.63
Santander UK 10.375% Non Cumulative - - - 400,000 540 0.38
Preferred*
Coral Products * - - - 2,000,000 320 0.23
Costain* - - - 41 - -
Total Investments 131,714 96.09 134,447 95.50
Net current assets 5,367 3.91 6,336 4.50
Net Assets 137,081 100.00 140,783 100.00
Unless otherwise specified, the actual holdings are, in each
case, of ordinary shares or stock units and of the nominal value
for which listing has been granted.
*Sold during the period to 30th June 2023.
Risks and uncertainties Principal risks
The principal and emerging risks and uncertainties that could
have a material impact on the Company's performance have not
changed from those set out on pages 22 and 23 of the Annual Report
for the year ended 31st December 2022.
Cautionary statement
This Half Yearly Report contains forward-looking statements that
involve risk and uncertainty. These have been made by the Directors
in good faith based on the information available to them at the
time of their approval of this Report.
The Board is mindful of the continuing uncertain outlook for the
global economy arising from the effects of the COVID-19 pandemic
and, more recently, the conflict between Russia and Ukraine and
significant increases in inflation. The Company's assets and the
potential level of revenue derived from the portfolio remain
exposed to macroeconomic deteriorations. The Directors, having
considered the nature and liquidity of the portfolio, the Company's
investment objectives and projected income and expenditure, are
satisfied that the Company has adequate resources to continue in
operational existence for the foreseeable future and is financially
sound.
Directors' Statement of Responsibility for the Half Yearly
Financial Report
The Directors are responsible for preparing the Half Yearly
financial report in accordance with applicable law and
regulations.
The Directors confirm that to the best of their knowledge:
-- the condensed set of financial statements has been prepared
in accordance with UK adopted InternationalAccounting Standard 34
"Interim Financial Reporting"; and
-- the Half Yearly management report includes a fair review of
the information required by DTR 4.2.7R and4.2.8R. This report was
approved on 1st August 2023.
David M Best Chairman
Statement of Comprehensive Income
for the six months ended 30th June 2023
Six months ended 30th June Six months ended 30th June Year ended 31st December
2023 2022 2022
Notes
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment income 2 2,606 - 2,606 2,473 - 2,473 3,633 - 3,633
Other operating income 2 40 - 40 1 - 1 19 - 19
Total income 2,646 - 2,646 2,474 - 2,474 3,652 - 3,652
Gains/(losses) through fair - 1,912 1,912 - (43,713) (43,713) - (56,774) (56,774)
value
2,646 1,912 4,558 2,474 (43,713) (41,239) 3,652 (56,774) (53,122)
Expenses
Investment management fee 423 - 423 - - - 175 - 175
Other expenses 175 107 282 377 38 415 767 181 948
598 107 705 377 38 415 942 181 1,123
Profit/(loss) before tax 2,048 1,805 3,853 2,097 (43,751) (41,654) 2,710 (56,955) (54,245)
Tax - - - - - - - - -
Profit/(loss) for the period 2,048 1,805 3,853 2,097 (43,751) (41,654) 2,710 (56,955) (54,245)
Earnings per share
34.1p 30.1p 64.2p 28.9p (603.0)p (574.1)p 38.9p (818.2)p (779.3)p
Return per Ordinary Share
Return per share is calculated using the weighted average number
of Ordinary shares in issue during the period ended 30th June 2023
of 5,999,351 (30th June 2022: 7,255,868, 31st December 2022:
6,960,445).
The total column of this statement represents the Statement of
Comprehensive Income, prepared in accordance with International
Financial Reporting Standards as adopted by the UK. 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 are those of the single
entity and derive from continuing operations.
The gain for the period disclosed above represents the Company's
total Comprehensive Income. The Company does not have any other
Comprehensive Income.
An interim dividend of 11.75p (2022: 10.75p) per share and
amounting to GBP682,555 (calculated as at 26th July 2023) (2022:
GBP761,191) is payable on 25th September 2023 to shareholders on
the register as at 25th August 2023 (ex-dividend 24th August
2023).
The financial information contained in this Half Yearly
Financial Report does not constitute statutory accounts as defined
in Sections 434 - 436 of the Companies Act 2006. The information
for the six months to 30th June 2023 has not been audited.
The information for the year ended 31st December 2022 has been
extracted from the latest published audited accounts which have
been filed with the Registrar of Companies. The report of the
auditors on those accounts contained no qualification or statement
under Section 498 (2) or (4) of the Companies Act 2006.
Statement of Financial Position
as at 30th June 2023
30th June 30th June 31st December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Non-current assets
Investments - fair value through profit or loss 131,714 162,608 134,447
131,714 162,608 134,447
Current assets
Other receivables 1,098 1,312 561
Cash and cash equivalents 4,755 11,156 6,039
5,853 12,468 6,600
Total assets 137,567 175,076 141,047
Current liabilities
Other payables 486 184 264
486 184 264
Total assets less current liabilities 137,081 174,892 140,783
Net assets 137,081 174,892 140,783
Equity attributable to equity holders
Called up share capital 1,468 1,786 1,542
Capital redemption reserve 787 469 713
Capital reserve 85,247 75,938 67,191
Revaluation reserve 46,993 94,246 69,032
Revenue reserve 2,586 2,453 2,305
Total equity 137,081 174,892 140,783
Net asset value per share
Ordinary shares 2,333.8p 2,447.9p 2283.2p
The number of Ordinary shares in issue as at 30th June 2023 was
5,873,611 (30th June 2022: 7,144,458, 31st December 2022:
6,165,989).
Statement of Changes in Equity
for the six months ended 30th June 2023
Share Capital redemption reserve Capital Revenue
capital reserve Revaluation reserve reserve
GBP'000 Total
GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
For the six months ended 30th June 2023
Balance at 31st December 2022 1,542 713 67,191 69,032 2,305 140,783
Profit for the period - - 23,844 (22,039) 2,048 3,853
Total recognised income and expense 1,542 713 91,035 46,993 4,353 144,636
Ordinary shares bought back and (74) 74 (5,788) - - (5,788)
cancelled
Dividends (Note 3) - - - - (1,767) (1,767)
Balance at 30th June 2023 1,468 787 85,247 46,993 2,586 137,081
Capital redemption
Share reserve Capital Revenue
capital reserve Revaluation reserve reserve
GBP'000 Total
GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
For the six months ended 30th June 2022
Balance at 31st December 2021 1,842 413 81,410 137,959 2,108 223,732
Loss for the period - - (38) (43,713) 2,097 (41,654)
Total recognised income and expense 1,842 413 81,372 94,246 4,205 182,078
Ordinary shares bought back and (56) 56 (5,434) - - (5,434)
cancelled
Dividends (Note 3) - - - - (1,752) (1,752)
Balance at 30th June 2022 1,786 469 75,938 94,246 2,453 174,892
Capital redemption
Share reserve Capital Revaluation Revenue
capital reserve reserve reserve
GBP'000 Total
GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
For the six months ended 31st December
2022
Balance at 31st December 2021 1,842 413 81,410 137,959 2,108 223,732
Loss for the period - - 11,972 (68,927) 2,710 (54,245)
Total recognised income and expense 1,842 413 93,382 69,032 4,818 169,487
Ordinary shares bought back and cancelled (300) 300 (10,838) - - (10,838)
Tender offer - - (15,111) - - (15,111)
Tender offer costs - - (242) - - (242)
Dividends (Note 3) - - - - (2,513) (2,513)
Balance at 31st December 2022 1,542 713 67,191 69,032 2,305 140,783
Statement of Cash Flows
for the six months ended 30th June 2023
30th June 30th June 31st December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Cashflows from operating activities
Profit/(loss) before tax 3,853 (41,654) (54,245)
Adjustments for:
Gains/(losses) on investments (1,912) 43,713 56,774
Purchases of investments (25,309) (9,924) (24,439)
Proceeds on disposal of investments 29,954 - 29,615
Operating cash flows before movements in working capital 6,586 (7,865) 7,705
(Increase)/decrease in receivables (537) (671) 80
Increase in payables 222 117 197
Net cash flows from operating activities 6,271 (8,419) 7,982
Cashflows from financing activities
Ordinary shares bought back and cancelled (5,788) (5,434) (10,838))
Tender offer - - (15,111)
Tender costs paid - - (242)
Dividends paid (1,767) (1,752) (2,513)
Net cash used in financing activities (7,555) (7,186) (28,704)
Net decrease in cash and cash equivalents (1284) (15,605) (20,722)
Cash and cash equivalents at beginning of period 6,039 26,761 26,761
Cash and cash equivalents at end of period 4,755 11,156 6,039
Notes to the Half Yearly Financial Report
for the six months ended 30th June 2023
1. Accounting Standards
The half yearly financial statements for the period ended 30th June 2023 have been prepared in accordance with the
Disclosure and Transparency Rules sourcebook of the Financial Conduct Authority and with the UK adopted International
Accounting Standard 34 "Interim Financial Reporting". The accounting policies applied and methods of computation in
this interim statement are consistent with those used in the Company's latest published annual financial statements.
Significant accounting policies
a. Accounting convention
The accounts are prepared under the historical cost basis, except for the measurement of fair value of investments.
b. Adoption of new IFRS standards
There have been minor amendments to IAS 16, 37 and 41 and IFRS 4, 7, 9 and 16 which were effective for annual periods
beginning on or after 1st January 2022 and have not had any material impact on the accounts. Amendments to IAS 1
(Disclosure of Accounting Policies), IAS 8 (Definition of Accounting Estimates), IFRS 4 (Extension of IFRS 9 Deferral)
and IFRS 17 (Insurance Contracts) are effective for annual periods beginning on or after 1st January 2023 and are not
anticipated to have any material impact on the accounts.
c. Income
Dividend income is included in the financial statements on the ex-dividend date. All other income is included on an
accruals basis.
d. Expenses
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue account except as
follows:
-- Expenses which are incidental to the acquisition of an investment are included within the cost of the
investment.
-- Expenses which are incidental to the disposal of an investment are deducted from the disposal proceeds of
the investment
e. Taxation
The charge for taxation is based on the net revenue for the year. Deferred taxation is recognised in respect of all
timing differences that have originated but not reversed at the statement of financial position date. Investment trusts
which have approval under section 1158 of the Corporation Tax Act 2010 are not liable for taxation on capital gains.
f. Dividends
Dividends payable to shareholders are recognised in the financial statements when they are paid or, in the case of
final dividends, when they are approved by the shareholders.
g. Cash and cash equivalents
Cash comprises cash in hand and deposits payable on demand. Cash equivalents are short-term highly liquid investments
that are readily convertible to known amounts of cash.
h. Investments
Investments are classified as fair value through profit or loss as the Company's business is investing in financial
assets
with a view to profiting from their total return in the form of interest, dividends or capital growth.
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are
recognised in the Statement of Comprehensive Income as "Gains or losses on investments held at fair value through
profit or loss". Also included within this heading are transaction costs in relation to the purchase or sale of
investments.
All investments, classified as fair value through profit or loss, are further categorised into the following fair value
hierarchy:
Level 1 - Unadjusted prices quoted in active markets for identical assets and liabilities.
Level 2 - Having inputs other than quoted prices included within Level 1 that are observable for the asset or
liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Having inputs for the asset or liability that are not based on observable data.
Investments traded on active stock exchange markets are valued at their fair value, which is determined by the quoted
market bid price at the close of business at the statement of financial position date. Where trading in a security is
suspended, the investment is valued at the Board's estimate of its fair value.
Unquoted investments are valued by the Board at fair value using the International Private Equity and Venture Capital
Valuation Guidelines.
2. Income
30th June 30th June
31st December 2022
2023 2022
GBP'000
GBP'000 GBP'000
Income from investments:
Franked investment income 2,606 2,473 3,633
Interest 40 1 19
Total income 2,646 2,474 3,652
3. Dividends
30th June 30th June
31st December 2022
2023 2022
GBP'000
GBP'000 GBP'000
Amounts recognised as distributions to equity holders in the relevant period:
Interim dividend for the year ended 31st December 2022 of 10.75p per share
- - 761
Final dividend for the year ended 31st December 2022 of 29.25p per share (year
ended 31st December 2021: 24.0p)
1,767 1,752 1,752
1,767 1,752 2,513
30th June
2023
GBP'000
Proposed interim dividend of 11.75p per share 683
This proposed interim dividend was approved by the Board on 1st August 2023, has been calculated based on shares in
issue at 26th July 2023, being the latest practicable date prior to publication of this report and has not been
included as a liability at 30th June 2023.
4. Valuation of financial instruments
IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the
significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in
the accounting policies note 1 Investments, as set out in the Company's Annual Report and Financial Statements for the
year ended 31st December 2022.
The fair value hierarchy has the following levels:
Level 1 - Unadjusted prices quoted in active markets for identical assets and liabilities.
Level 2 - Having inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Having inputs for the asset or liability that are not based on observable data.
Level 1 Level 2 Level 3 Total
30th June 2023
GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair value through profit or loss
UK Equity Listed 94,351 - - 94,351
AIM traded stocks 37,32s2 - - 37,322
Unlisted stock - 41 - 41
Net fair value 131,673 41 - 131,714
Level 1 Level 2 Level 3 Total
30th June 2022
GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair value through profit or loss
UK Equity Listed 135,871 - - 135,871
AIM traded stocks 26,735 - - 26,735
Unlisted stock - 2 - 2
Net fair value 162,606 2 - 162,608
Level 1 Level 2 Level 3 Total
31st December 2022
GBP'000 GBP'000 GBP'000 GBP'000
Financial assets at fair value through profit or loss
UK Equity Listed 105,533 - - 105,533
AIM traded stocks 28,873 - - 28,873
Unlisted stock - 41 - 41
Net fair value 134,406 41 - 134,447
There were no transfers between Level 1 and Level 2 during the periods.
5. Related Party Transactions
Under IAS 24, the Directors have been identified as related parties. Their fees and interests for the year ended 31st
December 2022 have been disclosed in the Directors' Annual Remuneration Report within the 2022 Annual Report and
Financial Statements.
6. Going Concern
The Company's assets comprise mainly realisable equity securities and cash and the value of its assets is greater than
its liabilities. Additionally, after reviewing the Company's budget, including the current financial resources and
projected expenses for the next twelve months and its medium-term plans, the Directors believe that the Company's
resources are adequate to continue in business for the foreseeable future.
Based on the above, the Board is satisfied that it is appropriate to continue to adopt the going concern basis in
preparing the financial statements. The Board reported on the principal risks and uncertainties faced by the Company in
the Annual Report and Financial Statements for the year ended 31st December 2022.
Company Information
DIRECTORS D. M. BEST (Chairman)
Dr A. J. HOSTY
S. J. B. KNOTT
J. B. ROPER
M. H. VAUGHAN
REGISTERED OFFICE Hamilton Centre
Rodney Way
Chelmsford CM1 3BY
WEBSITE www.jupiteram.com/rightsandissues
JUPITER UNIT TRUST MANAGERS LIMITED
The Zig Zag Building
INVESTMENT MANAGER/ALTERNATIVE INVESTMENT FUND MANAGER
70 Victoria Street
London SW1E 6SQ
investmentcompanies@jupiteram.com
SECRETARY/ADMINISTRATOR APEX FUND ADMINISTRATION SERVICES (UK) LIMITED
(FORMERLY MAITLAND ADMINISTRATION SERVICES LTD)
Hamilton Centre
Rodney Way
Chelmsford CM1 3BY
SOLICITORS EVERSHEDS SUTHERLAND
1 Wood Street
London EC2V 4DJ
AUDITOR BEGBIES
9 Bonhill Street
London EC2A 4DJ
REGISTRARS LINK GROUP
Central Square
29 Wellington Street
Leeds LS1 4DL
BROKER FINNCAP LIMITED
One Bartholomew Close
London EC1A 7BL
CUSTODIAN/DEPOSITARY NORTHERN TRUST COMPANY
50 Bank Street
Canary Wharf
London E14 5NT
Registration Details
Company Registration Number: 00736898 (Registered in England)
SEDOL number: 0739207
ISIN number: GB0007392078
London Stock Exchange (EPIC) Code: RIII
Global Intermediary Identification Number (GIIN) I2ZVNY.99999.SL.826
Legal Entity Identifier (LEI): 2138002AWAM93Z6BP574
-----------------------------------------------------------------------------------------------------------------------
Dissemination of a Regulatory Announcement, transmitted by EQS
Group. The issuer is solely responsible for the content of this
announcement.
-----------------------------------------------------------------------------------------------------------------------
ISIN: GB0007392078
Category Code: IR
TIDM: RIII
LEI Code: 2138002AWAM93Z6BP574
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited reviews
Sequence No.: 261671
EQS News ID: 1693187
End of Announcement EQS News Service
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(END) Dow Jones Newswires
August 01, 2023 11:26 ET (15:26 GMT)
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