Half-yearly Results

Rights and Issues Investment Trust PLC (RIII) Rights and Issues Investment Trust PLC: Half-yearly Results 02-Aug-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. RIGHTS AND ISSUES INVESTMENT TRUST PLC For the six months ended 30th June 2019   A copy of the Company's Half Yearly Financial Report for the six months ended 30th June 2019 will shortly be available to view and download from www.maitlandgroup.com/investments-trusts/rights-and-issues-investment-trust-plc/.  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 sent to shareholders shortly. Additional copies may be obtained from the Corporate Secretary - Maitland Administration services Limited, Hamilton Centre, Rodney Way, Chelmsford, Essex CM1 3BY.   INTERIM DIVIDEND An interim dividend of 10.75p per share has been approved by the Board and is payable on 27th September 2019 to shareholders on the register as at 30th August 2019 (ex-dividend 29th August 2019).   The following text is copied from the Half Yearly Financial Report.   HALF YEARLY FINANCIAL REPORT for the six months ended 30th June 2019   CHAIRMAN'S STATEMENT Markets have recovered with a 10.4% increase in the FTSE All-Share Index in the six months to 30 June 2019.   The UK smaller company market underperformed with the FTSE Small Cap Index rising by 8.5% and the FTSE Fledgling Index falling by 4.3%.   The Trust made modest progress with the net asset value increasing by 3.3% to 2188.7p.   The share buy-back programme has continued in the half year with a further £3.1m of purchases and the issued equity has now been reduced by 13% since December 2016.   The interim dividend is being raised by 2.4% to 10.75p.   The change of Prime Minister now means the Brexit process is at its most uncertain and this is likely to dominate for the remaining months of 2019.   Dr D. M. BRAMWELL Chairman 1st August 2019   You can view or download copies of the Half Yearly and the Annual Reports from our website at www.maitlandgroup.com/investment-trusts/rights-and-issues-investment-trust-plc/   The Half Yearly Report will be posted to shareholders and copies are available at the registered office of the Company.   Risks and uncertainties  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. Due to the inherent uncertainties, including stock market risk factor, actual results may differ materially from those expressed or implied by these forward-looking statements.   There are a number of potential risks and uncertainties which could have a material impact on the Company's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The Company's results continue to be exposed to market price risk. Further information on the principal long-term risks and uncertainties of the Company is included in the latest Annual Report.   STATEMENT OF COMPREHENSIVE INCOME for the six months ended 30th June 2019       Six months ended 30th June 2019   Six months ended 30th June 2018 Notes Revenue £'000 Capital £'000 Total £'000 Revenue £'000 Capital £'000 Total £'000 Investment income 2 1,911 - 1,911 1,814 - 1,814 Other operating income 2 8 - 8 8 - 8 Total income   1,919 - 1,919 1,822 - 1,822 Gains on fair value through profit or loss assets   - 5,518 5,518 - 8,873 8,873 Gains on subsidiary holding   - 52 52 - - -     1,919 5,570 7,489 1,822 8,873 10,695 Expenses               Investment management fee   - - - - - - Other expenses   400 16 416 395 44 439     400 16 416 395 44 439 Profit before tax   1,519 5,554 7,073 1,427 8,829 10,256 Tax-     - - - - - Profit for the period   1,519 5,554 7,073 1,427 8,829 10,256 Earnings per share               Return per Ordinary Share   19.1p 69.8p 88.9p 17.3p 107.3p 124.6p   Return per share is calculated using the weighted average number of Ordinary shares in issue during the period ended 30th June 2019 of 7,958,152 (2018: 8,228,933).   The total column of this statement represents the Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards as adopted by the EU. 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 profit 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 10.75p (2018: 10.50p) per share and amounting to £833,213 (calculated as at 29th July 2019) (2018: £845,870) is payable on 27th September 2019 to shareholders on the register as at 30th August 2019 (ex-dividend 29th August 2019).         Year ended 31st December 2018 Notes Revenue £'000 Capital £'000 Total £'000 Investment income 2 3,599 - 3,599 Other operating income 2 20 - 20 Total income   3,619 - 3,619 (Losses)/gains on fair value through profit or loss assets   - (21,459) (21,459) Gains on subsidiary holding   - - -     3,619 (21,459) (17,840) Expenses         Investment management fee   - - - Other expenses   813 59 872     813 59 872 Loss before tax   2,806 (21,518) (18,712) Tax   - - - Loss for the period   2,806 (21,518) (18,712) Earnings per share                   Return per Ordinary Share   34.5p (264.8)p (230.3)p   Return per share is calculated using the weighted average number of Ordinary shares in issue during the year ended 31st December 2018 of 8,125,931.   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 2019 and 30th June 2018 has not been audited.   The information for the year ended 31st December 2018 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.   The auditors have reviewed the financial information for the six months ended 30th June 2019 pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information and their report is on page 12.   BALANCE SHEET as at 30th June 2019 Non-current assets 30th June 2019 £'000 30th June 2018 £'000 31st December 2018 £'000 Investments - fair value through profit or loss 163,207 188,173 155,647   163,207 188,173 155,647 Current assets       Trade and other receivables 1,095 937 621 Amounts due from Group undertakings 78 78 78 Cash and cash equivalents 7,642 12,302 13,310   8,815 13,317 14,009 Total assets 172,022 201,490 169,656 Current liabilities       Trade and other payables 154 65 81   154 65 81 Total assets less current liabilities 171,868 201,425 169,575 Net assets 171,868 201,425 169,575 Equity       Called up share capital 1,963 2,025 2,002 Capital redemption reserve 292 230 253 Retained reserves:       Capital reserve 59,481 62,096 61,984 Revaluation reserve 107,170 134,491 102,217 Revenue reserve 2,962 2,583 3,119 Total equity 171,868 201,425 169,575 Net asset value per share       Ordinary shares 2,188.7p 2,487.9p 2,118.1p   STATEMENT OF CHANGES IN EQUITY for the six months ended 30th June 2019   For the six months ended 30th June 2018 Balance at Share capital £'000 Capital redemption reserve £'000 Capital reserve £'000 Revaluation reserve £'000 Revenue reserve £'000 Total £'000 31st December 2017 2,094 161 65,434 128,151 2,850 198,690 Profit for the period - - 2,489 6,340 1,427 10,256 Total recognised income and expense 2,094 161 67,923 134,491 4,277 208,946 Ordinary shares bought back and cancelled (69) 69 (5,827) - - (5,827) Dividends (Note 3) - - - - (1,694) (1,694) Balance at 30th June 2018 2,025 230 62,096 134,491 2,583 201,425   For the year ended 31st December 2018 Balance at Share capital £'000 Capital Redemption reserve £'000 Capital reserve £'000 Revaluation reserve £'000 Revenue reserve £'000 Total £'000 31st December 2017 2,094 161 65,434 128,151 2,850 198,690 Changes in equity for 2018             Loss for the year - - 4,416 (25,934) 2,806 (18,712) Total recognised income and expense 2,094 161 69,850 102,217 5,656 179,978 Ordinary shares bought back and cancelled (92) 92 (7,866) - - (7,866) Dividends (Note 3) - - - - (2,537) (2,537) Balance at 31st December 2018 2,002 253 61,984 102,217 3,119 169,575   For the six months ended 30th June 2019 Balance at Share capital £'000 Capital Redemption reserve £'000 Capital reserve £'000 Revaluation reserve £'000 Revenue reserve £'000 Total £'000 31st December 2018 2,002 253 61,984 102,217 3,119 169,575 Profit for the period - - 601 4,953 1,519 7,073 Total recognised income and expense 2,002 253 62,585 107,170 4,638 176,648 Ordinary shares bought back and cancelled (39) 39 (3,104) - - (3,104) Dividends (Note 3) - - - - (1,676) (1,676) Balance at 30th June 2019 1,963 292 59,481 107,170 2,962 171,868   STATEMENT OF CASH FLOWS for the six months ended 30th June 2019 Cashflows from operating activities 30th June 2019 £'000 30th June 2018 £'000 31st December 2018 £'000 Profit/(loss) before tax 7,073 10,256 (18,712) Adjustments for:       (Gains)/losses on investments (5,518) (8,873) 21,460 (Gains) on revaluation of subsidiary (52) - - Purchases of investments (2,815) (4,018) (4,018) Proceeds on disposal of investments 825 3,862 6,055 Operating cash flows before movements in working capital (487) 1,227 4,785 Increase in receivables (474) (358) (42) Increase/(decrease) in payables (35) (33) (17) Net cash from operating activities (996) 836 4,726 Cashflows from financing activities       Ordinary shares bought back and cancelled (2,996) (5,909) (7,948) Dividends paid (1,676) (1,694) (2,537) Net cash used in financing activities (4,672) (7,603) (10,485) Net decrease in cash and cash equivalents (5,668) (6,767) (5,759) Cash and cash equivalents at beginning of period 13,310 19,069 19,069 Cash and cash equivalents at end of period 7,642 12,302 13,310   NOTES TO THE HALF YEARLY FINANCIAL REPORT for the six months ended 30th June 2019   1.  Accounting Standards   The condensed interim financial report has been prepared in accordance with International Financial Reporting Standards (IFRSs), including IAS 34 "Interim financial reporting" as adopted by the European Union. The same accounting policies and methods of computation are followed in the interim financial report as those used in the Company's latest published annual financial statements.   2.  Income 30th June 30th June 31st December   2019 2018 2018   £'000 £'000 £'000 Total income comprises:       Dividends 1,911 1,814 3,599 Interest 8 8 20 Total income 1,919 1,822 3,619   3.  Dividends   30th June 2019 £'000 30th June 2018 £'000 31st December 2018 £'000 Amounts recognised as distributions to equity holders in the year:       Interim dividend for the year ended 31st December 2018 of 10.50p per share - - 843 Final dividend for the year ended 31st December 2018 of 21.00p per share (year ended 31st December 2017: 20.50p) 1,676 1,694 1,694   1,676 1,694 2,537     30th June 2019 £'000     Proposed interim dividend of 10.75p per share 833   833   This proposed interim dividend was approved by the Board on 1st August 2019, has been calculated based on shares in issue at 29th July 2019, and has not been included as a liability at 30th June 2019.   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 2018.   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 (ie as prices) or indirectly (ie derived from prices). Level 3 - Having inputs for the asset or liability that are not based on observable data.   30th June 2019 Financial assets at fair value through profit or loss Level 1 £000 Level 2 £000 Level 3 £000 Total £000 UK Equity Listed 121,300 - - 121,300 AIM traded stocks 41,147 - - 41,147 Delisted stock - 2 - 2 Investment in subsidiary undertaking - - 758 758 Net fair value 162,447 2 758 163,207 30th June 2018 Level 1 Level 2 Level 3 Total   £000 £000 £000 £000 Financial assets at fair value through profit or loss         UK Equity Listed 143,791 - - 143,791 AIM traded stocks 43,655 - - 43,655 Delisted stock - 21 - 21 Investment in subsidiary undertaking - - 706 706 Net fair value 187,446 21 706 188,173   31st December 2018 Financial assets at fair value through profit or loss Level 1 £000 Level 2 £000 Level 3 £000 Total £000 UK Equity Listed 116,544 - - 116,544 AIM traded stocks 38,395 - - 38,395 Delisted stock - 2 - 2 Investment in subsidiary - - 706 706 Net fair value 154,939 2 706 155,647   There were no transfers between Level 1 and Level 2 during the period. A reconciliation of fair value measurements in Level 3 is set out in the following table.     30th June 2019 £'000 30th June 2018 £'000 31st December 2018 £'000 Opening Balance 706 706 706 Purchases - - - Sales - - - Total gains or losses included in gains on investments in the Income Statement:       - on assets sold - - - - on assets held at period end 52 - - Closing Balance 758 706 706   The Level 3 investment relates to the Company's subsidiary, Discretionary Unit Fund Managers Limited, which has been valued based on the most recent estimated NAV.   5.  Related Party Transactions   Under IFRS, the Directors have been identified as related parties. Their fees and interests for the year ended 31st December 2018 have been disclosed in the Directors' Annual Remuneration Report within the 2018 Annual Report and Financial Statements.   During the period the Company had the following transactions with Discretionary Unit Fund Managers Limited, its subsidiary undertaking:     30th June 2019 £'000 30th June 2018 £'000 31st December 2018 £'000 Dividends received - - -   - - - Amounts owed by subsidiary undertaking 78 78 78   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 for continuing in business for the foreseeable future. Accordingly it is appropriate to continue to prepare accounts on a going concern basis.   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 IAS 34 "Interim financial reporting"; and the Half Yearly management report includes a fair review of the information required by DTR 4.2.7R and 4.2.8R. This report was approved on 1st August 2019.   Dr D. M. BRAMWELL Chairman   PORTFOLIO STATEMENT Details of the twenty largest investments as at 30th June 2019 are given below by market value:   UK Investments   Holdings   Market Value 30th June 2019 31st December 2018 30th June 2019 £'000 31st December 2018 £'000 Treatt 4,250,000 4,250,000 19,550 17,680 RPC Group 2,400,000 2,400,000 19,018 15,634 Hill & Smith Holdings 1,434,230 1,434,230 16,795 17,196 Macfarlane Group 17,250,000 17,250,000 16,526 12,248 Vp 1,800,000 1,800,000 15,480 16,920 Scapa Group 8,000,000 6,250,000 14,832 19,150 Spirax-Sarco Engineering 120,714 120,714 11,088 7,514 Colefax Group 2,100,000 2,250,000 11,025 12,375 Renold 27,000,000 27,000,000 8,775 7,560 Electrocomponents 1,300,000 1,300,000 8,226 6,586 Vitec Group 400,000 400,000 4,560 4,740 Menzies (John) 882,142 882,142 4,005 4,499 Elecosoft 4,520,781 4,520,781 3,481 3,029 Titon Holdings 1,265,000 1,265,000 1,923 2,277 Castings 400,000 400,000 1,640 1,500 Dialight 238,095 238,095 1,169 952 National Grid 137,500 137,500 1,149 1,051 GlaxoSmithKline 70,000 70,000 1,104 1,044 Discretionary Unit Fund         Managers Limited 93,600 93,600 758 706 Santander UK 10.375%         Non Cumulative Preferred 400,000 400,000 631 604       161,735 153,265 Balance held in other investments     1,472 2,382       163,207 155,647   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.   INDEPENDENT REVIEW REPORT TO RIGHTS AND ISSUES INVESTMENT TRUST PLC   INTRODUCTION We have been engaged by the Company to review the financial statements in the Half Yearly Financial Report for the six months ended 30th June 2019 which comprises the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and the related explanatory notes 1 to 6. We have read the other information contained in the Half Yearly Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.   The report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.   DIRECTORS' RESPONSIBILITIES The Half Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.   As disclosed in note 1, the Annual Financial Statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The financial statements included in this Half Yearly Financial Report have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.   OUR RESPONSIBILITY Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half Yearly Financial Report based on our review.   SCOPE OF REVIEW We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than in an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.   CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the financial statements in the Half Yearly Financial Report for the six months ended 30th June 2019 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.   JEREMY STAINES For and on behalf of Begbies, 9 Bonhill Street, London EC2A 4DJ Chartered Accountants 1st August 2019   DIRECTORS AND ADVISERS   DIRECTORS Dr D. M. BRAMWELL (Chairman) D. M. BEST Dr A. J. HOSTY S. J. B. KNOTT J. B. ROPER   REGISTERED OFFICE Hamilton Centre Rodney Way Chelmsford CM1 3BY   WEBSITE www.maitlandgroup.com/investment-trusts/rights-and-issues-investment-trust-plc/   ADMINISTRATOR/SECRETARY MAITLAND ADMINISTRATION SERVICES LTD Hamilton Centre Rodney Way Chelmsford CM1 3BY   SOLICITORS EVERSHEDS SUTHERLAND One Wood Street London EC2V 7WS   AUDITOR BEGBIES 9 Bonhill Street London EC2A 4DJ   REGISTRARS LINK MARKET SERVICES LTD The Registry 34 Beckenham Road Beckenham Kent BR3 4TU   BROKERS SHORE CAPITAL LTD Cassini House 57-58 St James's Street London SW1A 1LD   BANKERS/CUSTODIAN NORTHERN TRUST 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   END

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.:	15451
EQS News ID:	850273

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