Rights and Issues Investment Trust PLC: IR-Half-yearly Results

Rights and Issues Investment Trust PLC (RIII) Rights and Issues Investment Trust PLC: IR-Half-yearly Results 01-Aug-2023 / 16:25 GMT/BST 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 DIVIDEND 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 2023 31st December  2022 Total assets less current liabilities (£’000 137,081 140,783 Ordinary Share Performance 30th June 2023 31st December  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 (£8m market cap) and Coral Products (£14m 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 (£2bn 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 (£1bn 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 $200m of net cash on its balance sheet. Gresham Technologies (£118m 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 (£610m 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 Holdings Market Value £’000 % of Net Assets Holdings Market Value £’000 % of Net Assets 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 Preferred* – – – 400,000 540 0.38 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 International Accounting Standard 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 2023. David M Best Chairman     Statement of Comprehensive Income for the six months ended 30th June 2023 Notes Six months ended 30th June 2023 Six months ended 30th June 2022 Year ended 31st December 2022 Revenue £'000 Capital £'000 Total £'000 Revenue £'000 Capital £'000 Total £'000 Revenue £'000 Capital £'000 Total £'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 value – 1,912 1,912 – (43,713) (43,713) – (56,774) (56,774)   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   Return per Ordinary 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 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 £682,555 (calculated as at 26th July 2023) (2022: £761,191) 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 2023 £'000 30th June 2022 £'000 31st December 2022 £'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 £'000 Capital redemption reserve £'000 Capital reserve £'000 Revaluation reserve £'000 Revenue reserve £'000 Total £'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 cancelled (74) 74 (5,788) – – (5,788) Dividends (Note 3) - – - – (1,767) (1,767) Balance at 30th June 2023 1,468 787 85,247 46,993 2,586 137,081 Share capital £'000 Capital redemption reserve £'000 Capital reserve £'000 Revaluation reserve £'000 Revenue reserve £'000 Total £'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 cancelled (56) 56 (5,434) – – (5,434) Dividends (Note 3) - – - – (1,752) (1,752) Balance at 30th June 2022 1,786 469 75,938 94,246 2,453 174,892 Share capital £'000 Capital redemption reserve £'000 Capital reserve £'000 Revaluation reserve £'000 Revenue reserve £'000 Total £'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 2023 £'000 30th June 2022 £'000 31st December 2022 £'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 2023 £'000 30th June 2022 £'000 31st December 2022 £'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 2023 £'000 30th June 2022 £'000 31st December 2022 £'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 £'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. 30th June 2023 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’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 30th June 2022 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’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 31st December 2022 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’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 INVESTMENT MANAGER/ALTERNATIVE INVESTMENT FUND MANAGER JUPITER UNIT TRUST MANAGERS LIMITED The Zig Zag Building 70 Victoria Street London SW1E 6SQ [e-mail] 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