New Star Investment Trust PLC (NSI)
New Star Investment Trust PLC: Annual Financial Report
30-Sep-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
NEW STAR INVESTMENT TRUST PLC
This announcement constitutes regulated information.
UNAUDITED RESULTS
FOR THE YEARED 30TH JUNE 2019
New Star Investment Trust plc (the 'Company'), whose objective is to achieve
long-term capital growth, announces its consolidated results for the year
ended 30th June 2019.
FINANCIAL HIGHLIGHTS
30th June 30th June %
2019 2018 Change
PERFORMANCE
Net assets (GBP '000) 113,971 111,366 2.34
Net asset value per Ordinary share 160.47p 156.80p 2.34
Mid-market price per Ordinary share 111.00p 113.00p -1.77
Discount of price to net asset value 30.83% 27.9% n/a
Total Return* 2.98% 6.5% n/a
IA Mixed Investment 40% - 85% Shares 3.66% 4.9% n/a
(total return)
MSCI AC World Index (total return, 10.30% 9.5% n/a
sterling adjusted)
MSCI UK Index (total return) 1.68% 8.3% n/a
1st July 2018 to 1st July 2017 to
30th June 2019 30th June 2018
Revenue return per Ordinary 1.81p 1.17p
share
Capital return per share 2.86p 8.51p
Return per Ordinary share 4.67p 9.68p
TOTAL RETURN* 2.98% 6.5%
PROPOSED DIVID PER ORDINARY 1.40p 1.00p
SHARE
* The total return figure for the Group represents the revenue and capital
return shown in the consolidated statement of Comprehensive income plus
dividends paid (the Alternative performance measure).
CHAIRMAN'S STATEMENT
PERFORMANCE
Your Company's net asset value (NAV) total return was 3.0% over the year to
30th June 2019. This took the year-end NAV per ordinary share to 160.47p. By
comparison, the Investment Association's Mixed Investment 40-85% Shares
index gained 3.7%. Your Directors believe this benchmark is appropriate
because your Company has, since inception, been invested in a broad range of
asset classes. In a volatile year, global equity markets generated positive
returns although European and Asian equities underperformed US equities as a
result of escalating trade tensions, slowing economic growth and fears about
the consequences of a "no deal" Brexit. The MSCI AC World Total Return and
MSCI UK Total Return Indices gained 10.3% and 1.7% respectively while UK
government bonds returned 5.2%. Further information is provided in the
investment manager's report.
EARNINGS AND DIVID
The revenue return for the year was 1.81p per share (2018: 1.17p). This
represents a substantial increase. Your directors do not envisage increases
of a similar magnitude in subsequent years. A performance fee of 0.58p per
share (2018: nil) was deducted from capital.
Your Company has a revenue surplus in its retained revenue reserve, enabling
it to pay a dividend. Your directors recommend the payment of a final
dividend in respect of the year of 1.4p per share (2018: 1.0p).
OUTLOOK
Global economic growth slowed during 2019, with manufacturing suffering more
than services as a result of trade disputes and rising tariffs. The US is
seeking to maintain its technological supremacy so there may not be an early
end to its trade dispute with China. This may have a significant effect on
eurozone and Asian exporters while Brexit uncertainties may continue to
affect UK commercial and consumer confidence.
The decline in long-term bond yields relative to short-term bond yields
shows that investors fear the onset of recession. Major central banks have
sought to counter slowing economic growth through monetary easing but, after
a decade of such measures, further easing may prove to be less of a stimulus
than in the past. Your Company reduced its equity holdings over the year and
increased its holdings in cash. Investments in dollars, gold equities and
lower-risk multi-asset funds provide diversification and potentially some
protection if equity markets weaken.
CASH AND BORROWINGS
Your Company has no borrowings and ended its financial year with cash
representing 18.1% of its net asset value. Your Company is likely to
maintain a significant cash position.
The Company is a small registered Alternative Investment Fund Manager under
the European Union directive. The Company's assets now exceed the threshold
of EUR100 million. As a result, should it wish to borrow it would require a
change in regulatory permissions.
DISCOUNT
During the year, your Company's shares continued to trade at a significant
discount to their NAV. The Board keeps this issue under review.
ANNUAL MEETING
The Annual General Meeting will be held on Thursday, 14th November 2019 at
11am.
NET ASSET VALUE
Your Company's unaudited net asset value per share at 31st August 2019 was
162.91p.
INVESTMENT MANAGER'S REPORT
MARKET REVIEW
US monetary policy reached a watershed moment during your Company's
financial year. Starting in December 2015, the Federal Reserve had tightened
monetary policy through successive interest rate increases and some
reduction of its swollen balance sheet, culminating in December 2018, when
the Fed funds target rate rose to 2.25-2.50%. Global equities fell 10.57% in
sterling over the final quarter of 2018, more than erasing the previous
quarter's gains because investors feared overly-restrictive monetary policy
might choke off economic growth. In a significant volte-face, however, the
Fed chairman, Jerome Powell, retreated from earlier hawkish comments that
interest rates were "a long way" from neutral, saying rates were "close to"
neutral. Confidence returned following the Fed's U-turn, with global
equities gaining 16.68% in sterling in the six months to 30th June 2019 to
end a volatile year up 10.30%. US equities outperformed, rising 14.54% in
sterling, but European and Asian equities underperformed.
Safe-haven assets were in demand as economic prospects deteriorated. Global
bonds rose 9.80% in sterling while UK government bonds and sterling
corporate bonds rose 5.23% and 6.83% respectively. The yield on 10-year US
treasury bonds fell from 2.85% to 2.20%, with investors looking forward to
US interest rate cuts. Gold rose 16.25% in sterling as the decline in bond
yields reduced the opportunity cost of holding this nil-yielding commodity
and investors sought safety from the potential debasement of some major
currencies through monetary easing.
The Fed changed tack because of slowing economic growth and below-target
inflation. US gross domestic product (GDP) rose 3.1% in 2018 but the rate
slowed to 2.2% in the final quarter as the impact of fiscal stimulus and
increased public sector spending faded. In August 2019, the Fed forecast
growth of 2.1% for 2019. The narrowing difference between short-dated and
long-dated US bond yields led some forecasters to be more pessimistic,
fearing a recession might be approaching.
In August, shortly after your Company's year end, the 10-year US treasury
bond yield fell below the two-year yield. This so-called "yield inversion"
has preceded every US recession in the last 40 years although some months
have typically elapsed between the inversion and the onset of recession. US
leading indicators for manufacturing and non-manufacturing sectors weakened
in the first eight months of 2019 and the manufacturing leading indicator
dipped to a level that implied output might fall. Consumer spending,
however, proved resilient as a result of low unemployment. Employment data
tend, however, to be lagging indicators. In August, the Sino-US trade
dispute escalated as both sides increased tariffs. US tariffs have gained
bipartisan support and are likely to become an established feature of US
trade policy, reducing the scope for an economic boost if the impasse is
resolved.
UK GDP expanded 0.5% quarter-on-quarter in the first quarter of 2019. GDP
did, however, fall 0.2% quarter-on-quarter in the second quarter, according
to the first estimate, probably as a result of activity having been brought
forward into the first quarter ahead of the first Brexit deadline of 29th
March. UK household spending continued to grow steadily but leading
indicators deteriorated and the potential disruption from a no-deal Brexit
may tip the UK into recession. Brexit-risks overshadowed UK equities, rising
only 1.68% over the year under review. UK smaller companies did worse,
falling 5.36% because they tend to be more reliant on domestic earnings than
larger companies, whose export and overseas businesses benefitted from
sterling weakness. In response to the increased likelihood of a no-deal
Brexit, sterling fell 3.60% and 6.23% respectively against the dollar and
yen.
Equities in Europe excluding UK rose only 8.18% in sterling over the year.
Eurozone manufacturers suffered from worsening global economic prospects and
the impact of trade disputes and tariffs. German GDP fell in the third
quarter of 2018 and the second quarter of 2019 as the manufacturing sector
contracted. In June, German industrial production fell 1.5% on the previous
month, leaving it down 5.20% over 12 months as vehicle production was hit
particularly hard.
Over the summer of 2019, investors expected the European Central Bank (ECB)
to ease monetary policy later this year. The scope for interest rate cuts
may be limited, however, because the ECB's deposit rate ended your Company's
year at -0.40%. Banks have typically refrained from passing on the negative
deposit rate to retail customers, reducing their profits. Further cuts may
be no more effective in encouraging bank lending so the ECB may resort to
more bond buying, the previous programme having ended in 2018. As a result
of recent falls in bond yields, however, many Europe excluding UK sovereign
bonds were already trading on negative yields over the summer and the ECB
may encounter liquidity constraints.
During the year, equities in Asia excluding Japan and emerging markets
returned 3.55% and 5.40% respectively in sterling, held back by trade
disputes, with China, down 3.06% in sterling, particularly badly affected.
Chinese economic growth slowed as weak export demand was only partially
offset by increased infrastructure spending. Additional policy support may,
however, be forthcoming if trade talks stall. After the year-end, the
renminbi fell against the dollar, prompting the US to designate China a
currency manipulator. Renminbi-weakness generated fears of deflation in
August 2015 and January 2016, leading to sharp falls in some risky assets.
Within emerging markets, returns diverged widely. While Chinese equities
fell, Indian stocks rose 11.97% in sterling. The prime minister, Narendra
Modi, won a second term while the 16.15% oil price fall in sterling terms
benefitted India as an oil-importing economy. Russian equities rose 33.11%
in sterling as investors' fears of further sanctions proved unfounded for
now.
PORTFOLIO REVIEW
The total return of the Company was 2.98% for the year 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,
rose 3.66%.
The main reason for your Company's marginal underperformance relative to the
IA Mixed Investment 40-85% Shares Index was its relative lack of exposure to
Wall Street during a year in which US stocks outperformed. Your company's
largest holding, Fundsmith Equity, did, however, have the majority of its
assets in US stocks as did Polar Capital Technology. Both outperformed the
returns from US stocks, rising 18.48% and 16.03% respectively. Fundsmith
Equity holds a concentrated portfolio of large companies held for the longer
term. Its focus is on resilient companies with high returns on capital
employed and strong business models that are difficult for competitors to
replicate. This means future profits and cash flows are relatively easy to
predict.
Companies with these characteristics, regarded as "bond proxies", have
typically performed well since the credit crisis in an environment of steady
growth and low inflation. Many consumer staples companies such as Philip
Morris and Pepsico, which are among the top 10 holdings in Fundsmith's
portfolio, meet these criteria. In July 2019, the portfolio's largest sector
allocation was, however, technology, with Microsoft and Facebook among the
top 10 holdings. Both stocks are also top-10 holdings in Polar Capital
Technology. Your Company's Fundsmith Equity holding increased in August 2018
while profits were taken in Polar Capital Global Technology in September
2018.
By contrast with Fundsmith Equity, Artemis Global Income, which has a value
investment style, underperformed, falling 3.45% over the year. Its largest
holdings were in financial stocks, which were relatively weak because the
flattening yield curve damaged the profits of banks, which typically borrow
at lower short-term rates and lend for longer periods at higher rates.
Artemis Global Income does, however, have an above-average yield because of
its value bias, contributing to your Company's ability to pay dividends.
Value stocks have typically been out of favour since the credit crisis and
the valuation gulf widened over the year. Value stocks may, however,
outperform strongly should the macroeconomic outlook change in their favour
while delivering an attractive income in the meantime.
Aberforth Split Level Income, which invests in UK smaller companies and has
a value investment style, fell 18.42%, dragged down by fears of a "bad
Brexit", the greater sensitivity of smaller companies to the domestic UK
economy and investors' disenchantment with value investing. UK smaller
companies did, however, appear oversold over the summer of 2019 as a result
of investors' Brexit concerns while sterling's weakness may increase their
attractions to overseas investors.
Man GLG UK Income and Schroder Income fell 0.30% and 4.72% respectively as a
result of their bias towards value stocks although yields in excess of 5%
contributed significantly to your Company's ability to pay an increased
dividend. Trojan Income outperformed, however, rising 4.18% partly because
of its bias towards defensive consumer goods companies such as Unilever.
BlackRock Continental European Income was the best performer amongst the
investments in Europe excluding UK equities, rising 7.60%. FP Crux European
Special Situations, up 1.40%, remained amongst your Company's top 10
holdings although profit-taking through sales in August and October 2018
realised more than half of the investment. Standard Life European Equity
Income returned 1.39%.
Among the Asian and emerging markets holdings, the HSBC Russia Capped
exchange-traded fund gained 32.29% as it benefitted from Russian equity
strength. Russian holdings also enhanced the returns from JP Morgan Emerging
Markets Income, up 14.45%, while Liontrust Asia Income also outperformed,
rising 4.62%. Stewart Investors Indian Subcontinent underperformed, however,
up only 1.65% because of its cautious approach during a period of high local
equity valuations.
Your company has diversified risk through investments in gold equities,
dollar cash and lower-risk multi-asset funds. Gold price strength fuelled
the 20.54% gain from BlackRock Gold & General. Your company also benefited
from dollar strength through Trojan and EF Brompton Global Conservative,
which both had significant dollar holdings in their multi-asset portfolios.
Trojan and EF Brompton Global Conservative gained 4.15% and 2.87%
respectively.
During the year, your Company modestly increased investment in three private
companies, which have the potential to add an uncorrelated source of return.
The unquoted portfolio increased by more than GBP1 million after allowing for
sales and purchases. The investment in Embark, your Company's largest
unquoted investment, increased and the valuation has been written up in
response to the terms of a capital raising.
OUTLOOK
Global economic growth slowed over the summer of 2019, affected by US
monetary tightening in previous years and the fading of the impact of
President Trump's fiscal stimulus. The manufacturing sector was suffering
more than services as trade woes exacerbated worsening global economic
conditions. In the US, bipartisan support for tariffs aimed at Chinese
exports mean there may be no easy resolution of trade disputes as the US
seeks to maintain technological supremacy in key sectors such as information
technology and communications. The eurozone and some emerging markets were
more severely affected because of their dependence on exports while the UK
appeared vulnerable to a no-deal Brexit.
The flattening yield curve may imply a recession is approaching. The Federal
Reserve and some other major central banks have been seeking to mitigate the
impact of slowing growth through monetary easing. These policies may,
however, prove less effective than previously after more than a decade of
such measures. Your Company reduced the allocation to global equities over
the year and increased its investment in dollar cash. Investments in dollar
cash, gold equities and low-risk multi-asset funds provide diversification
and potentially some protection should equities fall. Investments in a small
number of private companies offer the potential for uncorrelated returns.
SCHEDULE OF TWENTY LARGEST INVESTMENTS AT 30TH JUNE 2019
Holding Activity Bid-market Percentage of
value net assets
GBP '000
Fundsmith Investment Fund 7,839 6.88
Equity Fund
Embark Group Unquoted 5,942 5.21
Investment
Polar Capital- Investment Fund 5,280 4.63
Global
Technology Fund
FP Crux Investment Fund 5,098 4.47
European
Special
Situations Fund
Schroder Income Investment Fund 4,795 4.21
Fund
EF Brompton Investment Fund 4,222 3.71
Global
Conservative
Fund
Artemis Global Investment Fund 3,856 3.38
Income Fund
BlackRock Investment Fund 3,794 3.33
Continental
European Income
Fund
Aberforth Split Investment 3,747 3.29
Level Income Company
Trust
Aquilus Investment Fund 3,698 3.25
Inflection Fund
BlackRock Gold Investment Fund 3,470 3.04
& General Fund
Lindsell Train Investment Fund 3,144 2.76
Japanese Equity
Fund
EF Brompton Investment Fund 2,846 2.50
Global Equity
Fund
EF Brompton Investment Fund 2,840 2.49
Global
Opportunities
Fund
Man GLG UK Investment Fund 2,767 2.43
Income Fund
Liontrust Asia Investment Fund 2,763 2.42
Income Fund
First State Investment Fund 2,750 2.41
Indian
Subcontinent
Fund
EF Brompton Investment Fund 2,694 2.36
Global Growth
Fund
MI Brompton UK Investment Fund 2,669 2.34
Recovery Unit
Trust
Trojan Income Investment Fund 2,379 2.09
Fund
76,593 67.20
Balance not 17,189 15.08
held in 20
investments
above
Total 93,782 82.28
investments
(excluding
cash)
Cash 20,605 18.08
Other net (416) (0.36)
current assets
Net assets 113,971 100.00
The investment portfolio, excluding cash, can be
further analysed as follows:
GBP '000
Investment funds 78,453
Investment companies and exchange 7,133
traded funds
Unquoted investments 7,386
Other quoted investments 810
93,782
SCHEDULE OF TWENTY LARGEST INVESTMENTS AT 30TH JUNE 2018
Holding Activity Bid-market Percentage of
value net assets
GBP '000
FP Crux Investment Fund 11,237 10.09
European
Special
Situations Fund
Polar Capital - Investment Fund 5,473 4.91
Global
Technology Fund
Schroder Income Investment Fund 5,242 4.71
Fund
Fundsmith Investment Fund 5,191 4.66
Equity Fund
Aberforth Split Investment 4,859 4.36
Level Income Company
Trust
Artemis Global Investment Fund 4,120 3.70
Income Fund
EF Brompton Investment Fund 4,105 3.69
Global
Conservative
Fund
BlackRock Investment Fund 3,699 3.32
Continental
European Income
Fund
Aquilus Investment Fund 3,562 3.20
Inflection Fund
Lindsell Train Investment Fund 3,312 2.97
Japanese Equity
Fund
Embark Group Unquoted 3,268 2.93
Investment
Man GLG UK Investment Fund 2,929 2.63
Income Fund
BlackRock Gold Investment Fund 2,904 2.61
& General Fund
EF Brompton Investment Fund 2,785 2.50
Global
Opportunities
Fund
Liontrust Asia Investment Fund 2,768 2.49
Income Fund
MI Brompton UK Investment Fund 2,746 2.47
Recovery Unit
Trust
Stewart Investment Fund 2,706 2.43
Investors
Indian
Subcontinent
Fund
EF Brompton Investment Fund 2,687 2.41
Global Equity
Fund
EF Brompton Investment Fund 2,630 2.36
Global Growth
Fund
Trojan Income Investment Fund 2,384 2.14
Fund
78,607 70.58
Balance not 17,694 15.89
held in 20
investments
above
Total 96,301 86.47
investments
(excluding
cash)
Cash 15,027 13.49
Other net 38 0.04
current assets
Net assets 111,366 100.00
The investment portfolio, excluding cash, can be
further analysed as follows:
GBP '000
Investment funds 80,548
Investment companies and exchange 9,357
traded funds
Unquoted investments, including 5,375
interest bearing loans of GBP250,000
Other quoted investments 1,021
96,301
STRATEGIC REVIEW
The Strategic Review is designed to provide information primarily about the
Company's business and results for the year ended 30th June 2019. The
Strategic Review should be read in conjunction with the Chairman's Statement
and the Investment Manager's Report above, which provide a review of the
year's investment activities of the Company and the outlook for the future.
STATUS
The Company is an investment company under section 833 of the Companies Act
2006. It is an Approved Company under the Investment Trust (Approved
Company) (Tax) Regulations 2011 (the 'Regulations') and conducts its affairs
in accordance with those Regulations so as to retain its status as an
investment trust and maintain exemption from liability to United Kingdom
capital gains tax.
The Company is a small registered Alternative Investment Fund Manager under
the European Union Markets in Financial Instruments Directive.
INVESTMENT OBJECTIVE AND POLICY
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, the underlying investment exposure.
The Company may invest up to 20% of its net assets 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.
Information on the Company's portfolio of assets with a view to spreading
investment risk in accordance with its investment policy above.
FINANCIAL REVIEW
Net assets at 30th June 2019 amounted to GBP113,971,000 compared with
GBP111,366,000 at 30th June 2018. In the year under review, the NAV per
Ordinary share increased by 2.3% from 156.80p to 160.47p, after paying a
dividend of 1.0p per share.
The Group's gross revenue rose to GBP2,239,000 (2018: GBP1,776,000). Last year
the Company increased its investment in income focused funds resulting in an
increase in gross income during the year under review. After deducting
expenses and taxation the revenue profit for the year was GBP1,284,000 (2018:
GBP831,000).
Total expenses for the year amounted to GBP1,364,000 (2018: GBP940,000), as a
result of a performance fee becoming payable. In the year under review the
investment management fee amounted to GBP688,000 (2018: GBP668,000). A
performance fee of GBP410,000 was payable in respect of the year under review
as the Company outperformed the cumulative hurdle rate. The performance fee
has been allocated to the Capital account in accordance with the Company's
accounting policy. At 30 June 2019 the Company's NAV was slightly above the
hurdle rate NAV. Further details on the Company's expenses may be found in
notes 3 and 4.
Dividends have not formed a central part of the Company's investment
objective. The increased investment in income focused funds has enabled the
Directors to declare an increased dividend. The Directors propose a final
dividend of 1.40p per Ordinary share in respect of the year ended 30th June
2019 (2018: 1.0p). If approved at the Annual General Meeting, the dividend
will be paid on 29th November 2019 to shareholders on the register at the
close of business on 8th November 2019 (ex-dividend 7th November 2019).
The primary source of the Company's funding is shareholder funds.
While the future performance of the Company is dependent, to a large degree,
on the performance of international financial markets, which in turn are
subject to many external factors, the Board's intention is that the Company
will continue to pursue its stated investment objective in accordance with
the strategy outlined above. Further comments on the short-term outlook for
the Company are set out in the Chairman's Statement and the Investment
Manager's report above.
Throughout the year the Group's investments included seven funds managed by
the Investment Manager (2018: seven). No investment management fees were
payable directly by the Company in respect of these investments.
PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS
In order to measure the success of the Company in meeting its objectives,
and to evaluate the performance of the Investment Manager, the Directors
review at each meeting: net asset value, income and expenditure, asset
allocation and attribution, share price of the Company and the discount. The
Directors take into account a number of different indicators as the Company
does not have a formal benchmark, and performance against these is shown in
the Financial Highlights.
Performance is discussed in the Chairman's Statement and Investment
Manager's Report.
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, asset allocation and fund 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 above. Investment returns will be
influenced by interest rates, inflation, investor sentiment,
availability/cost of credit and general economic and market conditions in
the UK and globally. A significant 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. Over the last few 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 influence 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 major 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 records, could
prevent the accurate reporting and monitoring of the Company's financial
position. The Company is also exposed to the operational risk that one or
more of its suppliers may not provide the required level of service.
The Directors confirm that they have carried out an assessment of the risks
facing the Company, including those that would threaten its business model,
future performance, solvency and liquidity.
VIABILITY STATEMENT
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 long term which is considered to be in excess of five
years. Five years is considered a reasonable period 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.
ENVIRONMENTAL, SOCIAL AND COMMUNITY ISSUES
The Company has no employees, with day-to-day management and administration
of the Company being delegated to the Investment Manager and the
Administrator. The Company's portfolio is managed in accordance with the
investment objective and policy; environmental, social and community matters
are considered to the extent that they potentially impact on the Company's
investment returns. Additionally, as the Company has no premises, properties
or equipment, it has no carbon emissions to report on.
The Company has sought, wherever possible, and been provided with assurance
from each of its main suppliers, that no slaves, forced labour, child
labour, or labour employed at rates of pay below statutory minimums for the
country of their operations, are being employed in the provision of services
to the Company.
GER DIVERSITY
The Board of Directors comprises three male directors. The Board recognises
the benefits of diversity, however, the Board's primary consideration when
appointing new directors is their knowledge, experience and ability to make
a positive contribution to the Board's decision making regardless of gender.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AT 30TH JUNE 2019
Year ended Year ended
30th June 2019 30th June 2018
Revenue Capital Revenue Capital
Return Return Return Return
GBP '000 GBP '000
Total Total
GBP '000 GBP '000 GBP '000 GBP '000
Notes
INVESTMENT 2 1,890 - 1,890 1,654 - 1,654
INCOME
Other 2 349 - 349 122 - 122
operating
income
2,239 - 2,239 1,776 - 1,776
GAINS AND
LOSSES ON
INVESTMENT
S
Gains on
investment
s at fair
value
through 9 - 1,992 1,992 - 6,218 6,218
profit or
loss
Other - 443 443 - (176) (176)
exchange
gains
/(losses)
Trail - 5 5 - 5 5
rebates
2,239 2,440 4,679 1,776 6,047 7,823
EXPENSES
Management 3 (688) (410) (1,098 (668) - (668)
and )
performanc
e fees
Other 4 (266) - (266) (272) - (272)
expenses
(954) (410) (1,364 (940) - (940)
)
PROFIT 1,285 2,031 3,315 836 6,047 6,883
BEFORE TAX
Tax 5 - - - (5) - (5)
PROFIT FOR 1,285 2,031 3,315 831 6,047 6,878
THE YEAR
EARNINGS
PER SHARE
Ordinary 7 1.81p 2.86p 4.67p 1.17p 8.51p 9.68p
shares
(pence)
The total column of this statement represents the Group's profit and loss
account, prepared in accordance with IFRS, as adopted by the European Union.
The supplementary Revenue Return and Capital Return columns are both
prepared under guidance published by the Association of Investment
Companies. All revenue and capital items in the above statement derive from
continuing operations.
The Company did not have any income or expense that was not included in
'Profit for the year'. Accordingly, the 'Profit for the year' is also the
'Total comprehensive income for the year', as defined in IAS1 (revised) and
no separate Statement of Comprehensive Income has been presented.
No operations were acquired or discontinued during the year.
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 YEARED 30TH JUNE
2019
Note Share Share Special Retained
premium reserve earnings
capital Total
GBP '000 GBP '000 GBP '000
GBP '000 GBP '000
AT 30TH 710 21,573 56,908 32,175 111,366
JUNE 2018
Total - - - 3,315 3,315
comprehensi
ve income
for the
year
Dividend 8 - - - (710) (710)
paid
AT 30TH 710 21,573 56,908 34,780 113,971
JUNE 2019
Included within Retained earnings were GBP1,687,000 of Company reserves
available for distribution.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30TH JUNE
2018
Note Share Share Special Retained
premium reserve earnings
capital Total
GBP '000 GBP '000 GBP '000
GBP '000 GBP '000
AT 30TH 710 21,573 56,908 25,865 105,056
JUNE 2017
Total - - - 6,878 6,878
comprehensi
ve income
for the
year
Dividend 8 - - - (568) (568)
paid
AT 30TH 710 21,573 56,908 32,175 111,366
JUNE 2018
Included within Retained earnings were GBP1,112,000 of Company reserves
available for distribution.
CONSOLIDATED BALANCE SHEET AT 30TH JUNE 2019
Notes 30th June 30th June
2019 2018
GBP '000 GBP '000
NON-CURRENT ASSETS
Investments at fair value through 9 93,782 96,301
profit or loss
CURRENT ASSETS
Other receivables 11 220 272
Cash and cash equivalents 12 20,605 15,027
20,825 15,299
TOTAL ASSETS 114,607 111,600
CURRENT LIABILITIES
Other payables 13 (636) (234)
TOTAL ASSETS LESS CURRENT LIABILITIES 113,971 111,366
NET ASSETS 113,971 111,366
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
Called-up share capital 14 710 710
Share premium 15 21,573 21,573
Special reserve 15 56,908 56,908
Retained earnings 15 34,780 32,175
TOTAL EQUITY 113,971 111,366
NET ASSET VALUE PER ORDINARY SHARE 16 160.47p 156.80p
CONSOLIDATED CASH FLOW STATEMENTS AT 30TH JUNE 2019
Year ended Year ended
30th June 30th June
2019 2018
Group Group
Notes GBP '000 GBP '000
NET CASH INFLOW FROM OPERATING
ACTIVITIES
1,334 673
INVESTING ACTIVITIES
Purchase of investments (4,340) (16,016)
Sale of investments 8,851 17,663
NET CASH INFLOW/(OUTFLOW) FROM
INVESTING ACTIVITIES
4,511 1,647
FINANCING
Equity dividends paid 8 (710) (568)
Amounts owed to subsidiary - -
undertakings
NET CASH (OUTFLOW) AFTER FINANCING (710) (568)
INCREASE IN CASH 5,135 1,752
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN CASH & CASH EQUIVALENTS
Increase in cash resulting from cash 5,135 1,752
flows
Exchange movements 443 (176)
Movement in net funds 5,578 1,576
Net funds at start of the year 15,027 13,451
CASH & CASH EQUIVALENTS AT OF 17 20,605 15,027
YEAR
RECONCILIATION OF PROFIT BEFORE
FINANCE COSTS AND TAXATION TO NET
CASH FLOW FROM OPERATING ACTIVITIES
Profit before finance costs and 2 3,315 6,883
taxation*
Gains on investments (1,992) (6,218)
Exchange differences (443) 176
Capital trail rebates (5) (5)
Net revenue gains before finance
costs and taxation
875 836
Decrease/(increase) in debtors 43 (187)
Increase in creditors 402 24
Taxation 9 (5)
Capital trail rebates 5 5
NET CASH INFLOW FROM OPERATING 1,334 673
ACTIVITIES
*Includes dividends received in cash of GBP1,599,000 (GBP1,164,000),
accumulation income of GBP278,000 (2018: GBP381,000) and interest received of
GBP408,000 (2018: GBP42,000).
NOTES TO THE ACCOUNTS FOR THE YEARED 30TH JUNE 2018
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with International
Financial Reporting Standards ('IFRS'). These comprise standards and
interpretations approved by the International Accounting Standards Board
('IASB'), together with interpretations of the International Accounting
Standards and Standing Interpretations Committee ('IASC') that remain in
effect, and to the extent that they have been adopted by the European Union.
These financial statements are presented in pounds sterling, the Group's
functional currency, being the currency of the primary economic environment
in which the Group operates, rounded to the nearest thousand.
(a) Basis of preparation: The financial statements have been prepared on a
going concern basis. The principal accounting policies adopted are set out
below.
Where presentational guidance set out in the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies and Venture
Capital Trusts' ('SORP') issued by the Association of Investment Companies
('AIC') in November 2014 and updated in February 2018 with consequential
amendments is consistent with the requirements of IFRS, the Directors have
sought to prepare the financial statements on a basis compliant with the
recommendations of the SORP.
(b) Basis of consolidation: The consolidated financial statements include
the accounts of the Company and its subsidiary made up to 30th June 2019. No
statement of comprehensive income is presented for the parent company as
permitted by Section 408 of the Companies Act 2006.
The parent company is an investment entity as defined by IFRS 10 and assets
are held at their fair value. The consolidated accounts include subsidiaries
which are an integral part of the Group and not investee companies.
Subsidiaries are consolidated from the date of their acquisition, being the
date on which the Company obtains control, and continue to be consolidated
until the date that such control ceases. The financial statements of the
subsidiary used in the preparation of the consolidated financial statements
are based on consistent accounting policies. All intra-group balances and
transactions, including unrealised profits arising therefrom, are
eliminated. Subsidiaries are valued at fair value, which is considered to be
their NAV in the accounts of the Company.
(c) Presentation of Statement of Comprehensive Income: In order to better
reflect the activities of an investment trust company and in accordance with
guidance issued by the AIC, supplementary information which analyses the
consolidated statement of comprehensive income between items of a revenue
and capital nature has been presented alongside the consolidated statement
of comprehensive income.
In accordance with the Company's Articles of Association, net capital
returns may not be distributed by way of a dividend. Additionally, the net
revenue profit is the measure the Directors believe is appropriate in
assessing the Group's compliance with certain requirements set out in the
Investment Trust (Approved Company) (Tax) Regulations 2011.
(d) Use of estimates: The preparation of financial statements requires the
Group to make estimates and assumptions that affect items reported in the
consolidated and company balance sheets and consolidated statement of
comprehensive income and the disclosure of contingent assets and liabilities
at the date of the financial statements. Although these estimates are based
on the Directors' best knowledge of current facts, circumstances and, to
some extent, future events and actions, the Group's actual results may
ultimately differ from those estimates, possibly significantly. The most
significant estimate relates to the valuation of unquoted investments.
(e) Revenue: Dividends and other such revenue distributions from investments
are credited to the revenue column of the consolidated statement of
comprehensive income on the day in which they are quoted ex-dividend. Where
the Company has elected to receive its dividends in the form of additional
shares rather than in cash and the amount of the cash dividend is recognised
as income, any excess in the value of the shares received over the amount
recognised is credited to the capital reserve. Deemed revenue from offshore
funds is credited to the revenue account. Interest on fixed interest
securities and deposits is accounted for on an interest rate basis.
(f) Expenses: Expenses are accounted for on an accruals basis. Management
fees, administration and other expenses, with the exception of transaction
charges, are charged to the revenue column of the consolidated statement of
comprehensive income. Performance fees and transaction charges are charged
to the capital column of the consolidated statement of comprehensive income.
(g) Investments held at fair value: Purchases and sales of investments are
recognised and derecognised on the trade date where a purchase or sale is
under a contract whose terms require delivery within the timeframe
established by the market concerned, and are initially measured at fair
value.
All investments are classified as held at fair value through profit or loss
on initial recognition and are measured at subsequent reporting dates at
fair value, which is either the bid price or the last traded price,
depending on the convention of the exchange on which the investment is
quoted. Investments in units of unit trusts or shares in OEICs are valued at
the bid price for dual priced funds, or single price for non-dual priced
funds, released by the relevant investment manager. Unquoted investments are
valued by the Directors at the balance sheet date based on recognised
valuation methodologies, in accordance with International Private Equity and
Venture Capital ('IPEVC') Valuation Guidelines such as dealing prices or
third party valuations where available, net asset values and other
information as appropriate.
(h) Taxation: The charge for taxation is based on taxable income for the
year. Withholding tax deducted from income received is treated as part of
the taxation charge against income. Taxation deferred or accelerated can
arise due to temporary differences between the treatment of certain items
for accounting and taxation purposes. Full provision is made for deferred
taxation under the liability method on all temporary differences not
reversed by the Balance Sheet date. No deferred tax provision is made
against deemed reporting offshore funds. Deferred tax assets are only
recognised when there is more likelihood than not that there will be
suitable profits against which they can be applied.
(i) Foreign currency: Assets and liabilities denominated in foreign
currencies are translated at the rates of exchange ruling at the balance
sheet date. Foreign currency transactions are translated at the rates of
exchange applicable at the transaction date. Exchange gains and losses are
taken to the revenue or capital column of the consolidated statement of
comprehensive income depending on the nature of the underlying item.
(j) Capital reserve: The following are accounted for in this reserve:
- gains and losses on the realisation of investments together with the
related taxation effect;
- foreign exchange gains and losses on capital transactions, including those
on settlement, together with the related taxation effect;
- revaluation gains and losses on investments;
- performance fees payable to the investment manager; and
- trail rebates received from the managers of the Company's investments.
The capital reserve is not available for the payment of dividends.
(k) Revenue reserve: This reserve includes net revenue recognised in the
revenue column of the Statement of Comprehensive Income.
(l) Special reserve: The special reserve can be used to finance the
redemption and/or purchase of shares in issue.
(m) Cash and cash equivalents: Cash and cash equivalents comprise current
deposits and balances with banks. Cash and cash equivalents may be held for
the purpose of either asset allocation or managing liquidity.
(n)Dividends payable: Dividends are recognised from the date on which they
are irrevocably committed to payment.
(o) Segmental Reporting: The Directors consider that the Group is engaged in
a single segment of business with the primary objective of investing in
securities to generate long term capital growth for its shareholders.
Consequently no business segmental analysis is provided.
(p) New standards, amendments to standards and interpretations effective for
annual accounting periods beginning after 1 July 2018:
The following amendments to standards effective this year, being relevant
and applicable to the Company, have been adopted, although they have no
impact on the financial statements:
- IFRS 7 Financial Instruments: disclosures for initial application of IFRS
9 - effective 1 January 2016 or when IFRS 9 is first applied
- IFRS 9 Financial Instruments - effective 1 January 2018
- IFRS 15 Revenue from Contracts with Customers - effective 1 January 2018
(q) Accounting standards issued but not yet effective: There are no
standards or amendments to standards not yet effective that are relevant to
the Group and should be disclosed.
2. INVESTMENT INCOME
Year ended Year ended
30th June 30th June
2019 2018
GBP '000 GBP '000
INCOME FROM INVESTMENTS
UK net dividend income 1,691 1,481
Unfranked investment income 199 173
1,890 1,654
OTHER OPERATING INCOME
Bank interest receivable 336 111
Loan interest income 13 11
349 122
TOTAL INCOME COMPRISES
Dividends 1,890 1,654
Other income 349 122
2,239 1,776
The above dividend and interest income has been included in the profit
before finance costs and taxation included in the cash flow statements.
3. MANAGEMENT FEES
Year ended Year ended
30th June 2019 30th June 2018
Revenue Capital Total Revenue Capital Total
GBP '000 GBP '000
GBP '000 GBP '000 GBP '000 GBP '000
Investment 688 - 688 668 - 668
management
fee
Performance - 410 410 - - -
fee
688 410 1,098 668 - 668
At 30th June 2019 there were amounts accrued of GBP177,000 (2018: GBP173,000)
for investment management fees and GBP410,000 (2018: GBPnil) for performance
fees.
4. OTHER EXPENSES
Year ended Year ended
30th June 30th June
2019 2018
GBP '000 GBP '000
Directors' remuneration 50 48
Administrative and secretarial fee 95 94
Auditors' remuneration
- Audit 32 31
- Interim review 8 8
Taxation compliance services 7 -
Other 74 91
266 272
Allocated to:
- Revenue 266 272
- Capital - -
266 272
5. TAXATION
(a) Analysis of tax charge for the year:
Year ended Year ended
30th June 2019 30th June 2018
Revenue Capital Revenue Capital
Return Return Return Return
GBP '000 GBP '000
Total Total
GBP '000 GBP '000 GBP '000 GBP '000
Overseas 3 - 3 17 - 17
tax
Recoverable (3) - (3) (12) - (12)
income tax
Total - - - 5 - 5
current tax
for the
year
Deferred - - - - - -
tax
Total tax - - - 5 - 5
for the
year (note
5b)
(b) Factors affecting tax charge for the year:
The charge for the year of GBPnil (2018: GBP5,000) can be reconciled to the
profit per the consolidated statement of comprehensive income as follows:
Year ended Year ended
30th June 30th June
2019 2018
GBP '000 GBP '000
Total profit before tax 3,315 6,883
Theoretical tax at the UK corporation tax 630 1,307
rate of 19.00% (2018: 19.00%)
Effects of:
Non-taxable UK dividend income (321) (281)
Gains and losses on investments that are (463) (1,148)
not taxable
Excess expenses not utilised 154 138
Overseas dividends which are not taxable - (16)
Overseas tax 3 17
Recoverable income tax (3) (12)
Total tax for the year - 5
Due to the Company's tax status as an investment trust and the intention to
continue meeting the conditions required to maintain approval of such status
in the foreseeable future, the Company has not provided tax on any capital
gains arising on the revaluation or disposal of investments.
There is no deferred tax (2018: GBPnil) in the capital account of the Company.
There is no deferred tax charge in the revenue account (2018: GBPnil).
At the year-end there is an unrecognised deferred tax asset of GBP520,000
(2018: GBP478,000) based on the enacted tax rates of 17% for financial years
beginning 1 April 2020, as a result of excess expenses.
6. COMPANY RETURN FOR THE YEAR
The Company's total return for the year was GBP3,315,000 (2018: GBP6,878,000).
7. RETURN PER ORDINARY SHARE
Total return per Ordinary share is based on the Group total return on
ordinary activities after taxation of GBP3,315,000 (2018: GBP6,878,000) and on
71,023,695 (2018: 71,023,695) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the year.
Revenue return per Ordinary share is based on the Group revenue profit on
ordinary activities after taxation of GBP1,285,000 (2018: GBP831,000) and on
71,023,695 (2018: 71,023,695) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the year.
Capital return per Ordinary share is based on net capital gains for the year
of GBP2,031,000 (2018: GBP6,047,000) and on 71,023,695 (2018: 71,023,695)
Ordinary shares, being the weighted average number of Ordinary shares in
issue during the year.
8. DIVIDS ON EQUITY SHARES
Amounts recognised as distributions in the year:
Year ended Year
ended
30th June
30th June
2019
2018
GBP '000
GBP '000
Dividends paid during the year 710 568
Dividends payable in respect of the year
ended:
30th June 2019: 1.4p (2018: 1.0p) per share 994 710
It is proposed that a dividend of 1.4p per share will be paid in respect of
the current financial year.
9. INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
Year ended Year ended
30th June 30th June
2019 2018
GBP '000 GBP '000
GROUP AND COMPANY 93,782 96,301
ANALYSIS OF INVESTMENT
PORTFOLIO - GROUP AND COMPANY
Quoted* Unquoted Total
GBP '000 GBP '000 GBP '000
Opening book cost 61,574 7,582 69,156
Opening investment holding 29,351 (2,206) 27,145
gains/(losses)
Opening valuation 90,925 5,376 96,301
Movement in period
Purchases at cost 3,224 1,116 4,340
Sales
- Proceeds (8,601) (250) (8,851)
- Realised gains on sales 4,175 - 4,175
Movement in investment holding gains (3,327) 1,144 (2,183)
for the year
Closing valuation 86,396 7,386 93,782
Closing book cost 60,372 8,448 68,820
Closing investment holding 26,024 (1,062) 24,962
gains/(losses)
Closing valuation 86,396 7,386 93,782
* Quoted investments include unit trust and OEIC funds and one monthly
priced fund.
Year ended Year ended
30th June 30th June
2019 2018
GBP '000 GBP '000
ANALYSIS OF CAPITAL GAINS AND LOSSES
Realised gains on sales of investments 4,175 7,457
(Decrease)/Increase in investment holding (2,183) (1,239)
gains
Net gains on investments attributable to 1,992 6,218
ordinary shareholders
Transaction costs
The purchase and sale proceeds figures above include transaction costs on
purchases of GBP3,260 (2018: GBP8,870) and on sales of GBP638 (2018: GBP626).
10. INVESTMENT IN SUBSIDIARY UNDERTAKING
The Company owns the whole of the issued share capital (GBP1) of JIT
Securities Limited, a company registered in England and Wales.
The financial position of the subsidiary is summarised as follows:
Year ended Year ended
30th June 30th June
2019 2018
GBP '000 GBP '000
Net assets brought forward 506 504
Profit for year - 2
Net assets carried forward 506 506
11. OTHER RECEIVABLES
30th June 30th June
2019 2018
Group Group
GBP '000 GBP '000
Prepayments and accrued income 214 257
Taxation 6 15
Amounts owed by subsidiary undertakings - -
220 272
12. CASH AND CASH EQUIVALENTS
30th June 30th June
2019 2018
Group Group
GBP '000 GBP '000
Cash at bank and on deposit 20,605 15,027
13. OTHER PAYABLES
30th June 30th June
2019 2018
Group Group
GBP '000 GBP '000
Accruals 636 234
Amounts owed to subsidiary undertakings - -
636 234
14. CALLED UP SHARE CAPITAL
30th June 30th June
2019 2018
GBP '000 GBP '000
Authorised
305,000,000 (2018: 305,000,000) Ordinary 3,050 3,050
shares of GBP0.01 each
Issued and fully paid
71,023,695 (2018: 71,023,695) Ordinary 710 710
shares of GBP0.01 each
15. RESERVES
Share Special Retained
Premium Reserve earnings
account
GBP '000 GBP '000 GBP '000
GROUP
At 30th June 2018 21,573 56,908 32,175
Decrease in investment holding gains - - (2,183)
Net gains on realisation of investments - - 4,175
Gains on foreign currency - - 443
Performance fee - - (410)
Trail rebates - - 5
Retained revenue profit for year - - 1,285
Dividend paid (710)
At 30th June 2019 21,573 56,908 34,780
The components of retained earnings are set out below:
30th June 30th June
2019 2018
GBP '000 GBP '000
GROUP
Capital reserve - realised 7,977 3,764
Capital reserve - revaluation 24,962 27,145
Revenue reserve 1,841 1,266
34,780 32,175
COMPANY
Capital reserve - realised 7,625 3,412
Capital reserve - revaluation 25,468 27,651
Revenue reserve 1,687 1,112
34,780 32,175
16. NET ASSET VALUE PER ORDINARY SHARE7
The net asset value per Ordinary share is calculated on net assets of
GBP113,971,000 (2018: GBP111,366,000) and 71,023,695 (2018: 71,023,695) Ordinary
shares in issue at the year end.
17. ANALYSIS OF CASH AND CASH EQUIVALENTS AT THE OF THE YEAR
At 1st Cash flow Exchange At 30th
July 2018 movement June 2019
GBP '000 GBP '000
GROUP
Cash at bank 15,027 5,135 443 20,605
and on deposit
18. FINANCIAL INFORMATION
2019 Financial information
The figures and financial information for 2019 are unaudited and do not
constitute the statutory accounts for the year. The preliminary statement
has been agreed with the Company's auditors and the Company is not aware of
any likely modification to the auditor's report required to be included with
the annual report and accounts for the year ended 30th June 2019.
2018 Financial information
The figures and financial information for 2018 are extracted from the
published Annual Report and Accounts for the year ended 30th June 2018 and
do not constitute the statutory accounts for that year. The Annual Report
and Accounts (available on the Company's website www.nsitplc.com [1]) has
been delivered to the Registrar of Companies and includes the Report and
Independent Auditors which was unqualified and did not contain a statement
under either section 498(2) or section 498(3) of the Companies Act 2006.
Annual Report and Accounts
The accounts for the year ended 30th June 2019 will be sent to shareholders
in October 2019 and will be available on the Company's website or in hard
copy format at the Company's registered office, 1 Knightsbridge Green,
London SW1X 7QA.
The Annual General Meeting of the Company will be held on 14th November 2019
at 11.00am at 1 Knightsbridge Green, London SW1X 7QA.
27th September 2019
ISIN: GB0002631041
Category Code: ACS
TIDM: NSI
LEI Code: 213800RT2OZF83G5N590
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 21671
EQS News ID: 881849
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6b10bbcccd5b5bcf36a37e16412c3301&application_id=881849&site_id=vwd&application_name=news
(END) Dow Jones Newswires
September 30, 2019 02:00 ET (06:00 GMT)
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