Half-yearly Report
City Merchants High Yield Trust Limited
Half-Yearly Financial Report Announcement
For the Six Months to 30 June 2013
KEY FACTS
City Merchants High Yield Trust Limited is a Jersey incorporated investment
company listed on the London Stock Exchange. The Company was incorporated on 19
December 2011 and commenced trading on 2 April 2012 following the scheme of
reconstruction and voluntary winding up of City Merchants High Yield Trust plc
(CMHYT plc) on 30 March 2012, as detailed in the prospectus dated 23 February
2012.
Objective of the Company
The Company's investment objective is to seek to obtain both high income and
capital growth from investment, predominantly in high-yielding fixed-interest
securities.
The Company seeks to provide a high level of dividend income relative to
prevailing interest rates through investment in fixed-interest securities,
various equity-like securities within fixed-income markets and equity-linked
securities such as convertible bonds and in direct equities that have a high
income yield. It also seeks to enhance total returns through capital
appreciation generated by investments which have equity-related
characteristics.
Share Capital and Structure
As at 30 June 2013, the Company's stated share capital consisted of 72,786,327
ordinary shares of no par value.
Gearing is provided by a one-year multicurrency revolving credit facility of £
20 million. At 30 June 2013, the Company was not geared.
Performance Statistics
The performance statistics for the year to 31 December 2012 combine the
performance of CMHYT plc from 1 January to 30 March 2012 which is unaudited and
the performance of this (its successor) company, from then until 31 December
2012.
FOR SIX MONTHS TO FOR YEAR TO
30 JUN 2013 31 DEC 2012
Total Return
Total Return NAV % in period 5.4% 24.5%
FTSE All-Share Index* 8.5% 12.3%
FTSE Government Securities - All Stocks Index* -3.1% 2.7%
Capital Return
Net asset value per share 2.5% 17.7%
FTSE All-Share Index* 6.3% 8.2%
FTSE Government Securities - All Stocks Index* -4.8% -0.9%
Movement in mid-market price per share -0.9% 11.9%
Dividend for the period 5p 10p
*Source: Thomson Reuters Datastream
Period End Information
AT 30 JUN 2013 AT 31 DEC 2012 % CHANGE
Net asset value per share 175.60p 171.29p +2.5
Mid-market price per share 163.00p 164.50p -0.9
Discount per share 7.2% 4.0%
Gearing
Gross gearing nil nil
Net cash 3.6% 4.1%
.
INTERIM MANAGEMENT REPORT INCORPORATING THE CHAIRMAN'S STATEMENT
Chairman's Statement
I am pleased to report that the Company has continued to operate satisfactorily
through the first half of 2013.
In the six months to 30 June 2013, the total NAV return was +5.4% which
compares favourably with the average return of -0.35% from the funds in the
Investment Management Association Sterling Strategic Bond sector.
The Manager's Investment Report, which follows, provides some background on how
this was achieved and how the portfolio is positioned.
I commented in the last annual report on the level of discount between the
Company's share price and the NAV. The volatility in the market has continued
and this has caused the discount to reach disappointing levels at times. The
Board continues to keep the discount under review.
The Company continues to produce an attractive level of income for shareholders
and the first and second quarterly interim dividends for this year, each of
2.5p, are in line with our target of matching last year's total dividends of
10p.
The Board believes the portfolio remains well-positioned to continue to provide
opportunities for modest growth while producing an attractive level of income
for shareholders.
Clive Nicholson
Chairman
20 August 2013
.
Manager's Investment Report
Market Background
The first half of 2013 has been positive for high yield bonds, although returns
have been more modest than in 2012 and have been driven by income more than
capital return. An environment of low core government and investment grade
yields has continued to drive demand for the asset class and extended its
strong recent performance relative to the wider bond market. However, high
yield has not been immune to the influence of higher core yields as markets
have adapted to changing expectations for US monetary policy. Returns towards
the end of this period were relatively weak and the market was negatively
affected by an increase in investor risk-aversion.
In public comments in May and June, Federal Reserve (Fed) Chairman Bernanke
indicated that the Fed is considering when to begin tapering its level of asset
purchases (quantitative easing (QE)). If the economy performs in line with the
Fed's forecasts, the answer could be "later this year". Any process to end QE
would be gradual and open to reassessment, and the Fed interest rate is set to
remain at its current low level for several quarters. However, the market has
taken this guidance as a hawkish change and Treasury, Gilt and Bund yields have
all moved significantly higher from near-record low levels reached in early
May. Economic data over recent weeks has been analysed in the context of
whether it exceeds or falls short of Fed expectations. US economic indicators
have been broadly positive. Non-farm payrolls rose by 195,000 in June, with the
data for some earlier months being revised higher. Due to an increase in
entrants to the workforce, the unemployment rate remains at 7.6%, unchanged
from March, but it is expected to fall in coming months. The Fed has suggested
that an unemployment rate of 7% could prompt the end of QE.
With the focus on the Fed, the markets paid relatively little attention to the
Bank of England (BoE) and the European Central Bank's (ECB) recent meetings.
But both have taken a step towards offering forward guidance on interest rates,
with the ECB expecting no rises for "an extended period" and the BoE saying
that recent market rate rises were "not warranted by . . . the domestic
economy". Economic indicators for Europe continue to predict only modest, if
not negative, growth.
According to data from Merrill Lynch, the total return for European high yield
bonds in the first half of 2013 was 7.2% (in sterling terms). Part of this rise
reflects sterling weakness relative to the euro. In local currency terms, the
return was 2.2%. The aggregate yield for the sector rose 19bps to 5.96%. By
comparison, sterling investment grade bonds returned -1.2% and Gilts returned
-3.3%. Within investment grade, financials outperformed, returning -0.2%
compared to -1.8% for non-financials. Sterling Tier 1 subordinated bank debt
had a positive return of 2.3%.
Appetite for high yield credit risk has been bolstered by an ongoing low level
of defaults. According to Moody's, the trailing 12-month default rate for
European speculative grade bonds was 3.4% at the end of the second quarter,
down from 3.6% at the same point in 2012. Partly this low rate reflects the
relatively easy terms on which corporations have been able to finance
themselves or refinance existing debt. Issuance has been high, with Barclays
estimating a total of £40.2 billion in European high yield across currencies in
the first half of 2013, up 64% on the same point last year. Unlike the
investment grade market, there has been only a low level of redemptions
offsetting this supply.
Portfolio Strategy
The NAV of the Company ended June 2013 at 175.60p, up from 171.29p at the close
of 2012. The Company paid a total dividend of 5p over the period. The total
return NAV % for the period was +5.4%.
The main themes of the portfolio have remained in place over this period. The
portfolio is positioned relatively defensively. The Company's cash position is
3.6% and the borrowing facility is currently undrawn. The portfolio has only a
small exposure to the lower credit quality categories, with less than 3% in
CCC+ and CCC. We hold a core of high yield corporate bonds which is dominated
by seasoned issuers that we believe are default-remote. A little over 20% of
the portfolio is invested in banks, predominantly the subordinated debt of
large, systemically important European and US names. The prices of many of
these bonds have risen significantly over the last year but we believe that
this is largely justified by the fall in risk as banks have bolstered their
capital structures and the banking system has received further support. We
think they still offer value. We feel that subordination risk is also being
relatively well-rewarded in other sectors. We hold approximately 20% of the
portfolio in hybrid instruments, diversified across insurance, telecom,
utilities and resources names. Many of these instruments are issued by
investment grade names. We also hold 10% of the portfolio in convertible bonds.
We think these offer attractive income as well as giving the portfolio some
sensitivity to the equity market.
Outlook
Our view coming into this year was that the high yield bond market was
relatively fully-valued, following the strong market rally of 2011-12.
Notwithstanding the recent weakness we have seen in the market, we consider
that valuations remain high. Some new issues in recent months have come to the
market with very low coupons by historic standards. There is also evidence of
higher leverage amongst issuers and of a greater proportion of issuance being
for purposes that are not supportive of creditors, such as dividend payments
and corporate transactions. However, the ongoing low level of default reflects
the market's relatively robust corporate fundamentals. We may see attractive
buying opportunities if the market suffers further volatility.
As is clear from central bank guidance, interest rates are unlikely to rise
significantly for several quarters to come. This puts a continuing premium on
the levels of income that high yield bonds, and portfolios like ours, can
produce.
Invesco Asset Management Limited
Manager
Paul Read Paul Causer
Portfolio Managers
20 August 2013
.
Related Parties and Transactions with the Manager
Invesco Asset Management Limited (IAML), a wholly-owned subsidiary of Invesco
Limited, acts as Manager to the Company. Details of IAML's services and fee
arrangements are disclosed in the 2012 annual financial report, which is
available on the Manager's website at www.invescoperpetual.co.uk/
investmenttrusts.
Principal Risks and Uncertainties
The principal risk factors relating to the Company can be summarised as
follows:
- Investment Objective - the success of the Company depends on the Investment
Manager's ability to achieve the Company's investment objective. There is no
guarantee that the Company's investment objective will be achieved or will
provide the returns sought by the Company.
- Market Risk - global markets have been experiencing volatility, disruption
and instability. Material changes affecting global capital markets may have a
negative effect on the Company's business, financial condition and results of
operations.
- Investment Risk - the poor performance of any individual portfolio investment
has a negative effect on the value of the portfolio and consequently the Net
Asset Value (NAV) per share.
- High-Yield Fixed-Interest Securities - these are subject to credit, interest
rate, liquidity and duration risks, and the majority of the portfolio consists
of non-investment grade securities.
- Foreign Exchange Risk - the movement of exchange rates may have unfavourable
or favourable impact on returns as the majority of the assets are non-sterling.
- Gearing - performance maybe geared by means of a bank credit facility. Whilst
gearing will be used with the aim of enhancing returns on the portfolio when
the value of the Company's assets is rising, it will have the opposite effect
when the value is falling. There is no guarantee that any credit facility would
be renewable at maturity on terms acceptable to the Company.
- Derivatives - the Company may enter into derivative transactions for
efficient portfolio management. Derivative instruments can be highly volatile
and expose investors to a high risk of loss.
- Dividends - the ability of the Company to pay dividends quarterly is
dependent on the level and timing of receipt of income on its investments.
- Regulatory and Tax Related - whilst compliance with rules and regulations is
closely monitored, breaches could affect returns to shareholders. Changes to
regulation or to the Company's tax status or tax treatment might adversely
affect the Company.
- Resources: Reliance on Third Party Providers - failure by any service
provider to carry out its obligations in accordance with the terms of its
appointment could have a materially detrimental impact on the effective
operation of the Company and on the ability of the Company to pursue its
investment policy successfully.
- Ordinary Shares - the shares may trade at a discount to NAV and shareholders
may be unable to realise their investments through the secondary market at NAV.
The existence of a liquid market in the shares cannot be guaranteed.
In the view of the Board, these principal risks and uncertainties are as
applicable to the remaining six months of the financial period as they were to
the period under review.
Going Concern
The financial statements are prepared on a going concern basis. The Directors
consider that going concern is the appropriate basis as they have a reasonable
expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future. In reaching this conclusion, the
Directors have taken into account the Company's investment objective, its risk
management policies, the diversified nature of its investment portfolio, the
borrowing facility which can be used to meet short-term funding requirements,
the liquidity of most of its investments which could be used to repay any
borrowings in the event that the facility could not be renewed or replaced and
the ability of the Company to meet all of its liabilities and ongoing expenses.
.
BOND RATING ANALYSIS
Standard and Poor's Ratings, investments grade is BBB- and above
The definitions of these ratings are set out on page 18 of the 2012 annual
financial report.
RATING 30 JUN 2013 31 DEC 2012
% OF CUMULATIVE % OF CUMULATIVE
PORTFOLIO TOTAL % PORTFOLIO TOTAL %
Investment Grade:
A- 1.9 1.9 3.0 3.0
BBB+ 5.7 7.6 3.9 6.9
BBB 8.0 15.6 7.7 14.6
BBB- 8.0 23.6 9.3 23.9
Non-investment Grade:
BB+ 9.3 32.9 5.7 29.6
BB 9.5 42.4 12.7 42.3
BB- 6.4 48.8 10.5 52.8
B+ 10.3 59.1 11.4 64.2
B 7.6 66.7 4.0 68.2
B- 3.5 70.2 3.3 71.5
CCC+ 1.5 71.7 1.5 73.0
CCC 1.0 72.7 0.8 73.8
NR (including equity and warrant) 27.3 100.0 26.2 100.0
100.0 100.0
.
THIRTY LARGEST INVESTMENTS AT 30 JUNE 2013
MOODY/S&P COUNTRY OF MARKET VALUE % OF
ISSUER/ISSUE RATING SECTOR INCORPORATION £'000 PORTFOLIO
LBG Capital Financials UK
7.975% 15 Sep 2024 B1/BB 3,777
6.385% 12 May 2020 Ba3/BB+ 1,267
9% 15 Dec 2019 Ba3/BB+ 1,075
6.439% 23 May 2020 B1/BB 847
16.125% 10 Dec 2024 Ba3/BB+ 142
7,108 5.84
General Motors Consumer USA
Goods
Wts 10 Jul 2019 Equity 4,910
Wts 10 Jul 2016 Equity 492
5,402 4.44
Aviva Financials UK
6.125% Perpetual Baa1/BBB 3,453
8.875% Preference NR/NR 1,300
4,753 3.91
Société Genérale Financials France
8.875% FRN Ba2/BBB- 4,159 3.42
Perpetual
Premier Farnell Industrials UK
89.2p Convertible NR/NR 4,011 3.30
  Preference
Intesa Sanpaolo Financials Italy
8.375% FRN Ba2/BB+ 2,778 2.28
Perpetual
Abengoa Industrials Spain
6.25% Cnv 17 Jan NR/NR 862
2019
8.5% 31 Mar 2016 B2/B 849
6.875% Cnv 24 Jul NR/NR 598
2014
4.5% Cnv 03 Feb NR/NR 309
2017
2,618 2.15
Credit Agricole Financials France
7.589% FRN Ba2/BBB- 2,066
Perpetual
8.125% FRN Ba2/BBB- 505
Perpetual
2,571 2.11
Unitymedia Kabel Consumer Germany
Services
9.625% 01 Dec 2019 B3/B- 1,879
5.625% 15 Apr 2023 Ba3/B+ 659
2,538 2.09
Balfour Beatty Industrials UK
10.75p Convertible NR/NR 2,139 1.76
Preference
Catlin Insurance Financials USA
7.249% FRN NR/BBB+ 2,118 1.74
Perpetual
CEMEX Consumer
Goods
4.875% Cnv 15 Mar NR/NR Mexico 1,508
2015
9.25% 12 May 2020 NR/B Spain 599
2,107 1.73
REA Finance Consumer Netherlands
Goods
9.5% 31 Dec 2017 NR/NR 2,080 1.71
SSE Utilities UK
5.453% Perpetual Baa2/BBB 2,048 1.68
MOODY/S&P COUNTRY OF MARKET VALUE % OF
ISSUER/ISSUE RATING SECTOR INCORPORATION £'000 PORTFOLIO
Barclays Financials UK
9.25% Perpetual Ba1/BBB 1,061
6.625% 30 Mar 2022 Baa3/BBB+ 960
2,021 1.66
Citigroup Financials USA
6.829% FRN 28 Jun Ba2/BB 1,937
2067
US common stock Equity 63
2,000 1.64
Enterprise Inns Consumer UK
Goods
6.5% 06 Dec 2018 NR/BB- 1,954 1.61
(SNR)
Santos Finance Oil and Gas Australia
8.25% FRN 22 Sep NR/BBB 1,946 1.60
2070
Obrascon Huarte Industrials Spain
Lain
8.75% 15 Mar 2018 Ba2/NR 1,838 1.51
Origin Energy Oil and Gas Australia
7.875% 16 Jun 2071 Ba1/BB+ 1,767 1.45
RWE Utilities Germany
4.625% FRN Baa3/BBB- 1,748 1.44
Perpetual
Equiniti Newco 2 Support UK
Services
7.125% 15 Dec 2018 B3/NR 1,154
FRN 15 Dec 2018 B3/NR 550
1,704 1.40
Iron Mountain Support USA
Services
6.75% 15 Oct 2018 B1/B+ 1,520 1.25
AXA Financials France
5.25% FRN 16 Apr A3/BBB 873
2040
6.379% FRN Baa1/BBB- 640
Perpetual
1,513 1.24
Standard Life Financials UK
6.75% Perpetual A3/A- 1,057
5.5% 04 Dec 2042 Baa2/BBB 347
1,404 1.15
Campofrio Food Consumer Spain
Goods
8.25% 31 Oct 2016 B1/B+ 1,344 1.10
UniCredit Financials Luxembourg
International Bank
8.125% FRN Ba2/BB+ 865
Perpetual
8.5925% FRN Ba2/BB+ 476
Perpetual
1,341 1.10
Wind Acquisition Consumer Luxembourg
Finance Services
7.375% 15 Feb 2018 Ba3/BB- 668
11.75% 15 Jul 2017 B3/B 666
1,334 1.10
US Treasury Government USA
0% 01 Aug 2013 NR/NR 1,315 1.08
Suez Environnement Utilities France
4.82% FRN Perpetual Baa2/NR 1,311 1.08
72,490 59.57
Other investments 49,195 40.43
Total investments 121,685 100.00
.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Trading commenced on 2 April 2012
STATED CAPITAL REVENUE
CAPITAL RESERVE RESERVE TOTAL
£'000 £'000 £'000 £'000
FOR THE SIX MONTHS ENDED 30 JUNE 2013
At 31 December 2012 113,410 9,336 1,929 124,675
Total comprehensive income for the - 2,970 3,807 6,777
period
Dividends paid - note 4 - - (3,640) (3,640)
At 30 June 2013 113,410 12,306 2,096 127,812
FOR THE PERIOD 19 DECEMBER 2011 TO 30
JUNE 2012
At 19 December 2011 - - - -
Issue of new shares 113,930 - - 113,930
Issue costs (520) - - (520)
Total comprehensive income for the - (4,868) 2,073 (2,795)
period
At 30 June 2012 113,410 (4,868) 2,073 110,615
FOR THE PERIOD 19 DECEMBER 2011 TO 31
DECEMBER 2012
At 19 December 2011 - - - -
Issue of new shares 113,930 - - 113,930
Issue costs (520) - - (520)
Total comprehensive income for the - 9,336 5,640 14,976
period
Dividends paid - note 4 - - (3,711) (3,711)
At 31 December 2012 113,410 9,336 1,929 124,675
.
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Trading commenced on 2 April 2012
FOR THE SIX FOR THE PERIOD FOR THE PERIOD
MONTHS TO 19 DEC 2011 19 DEC 2011
30 JUN 2013 TO 30 JUN 2012 TO 31 DEC 2012
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL TOTAL
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Profit/(loss) on - 5,034 5,034 - (6,069) (6,069) 8,370
investments at
fair value
Exchange - (51) (51) - 5 5 123
differences
(Loss)/profit on - (1,835) (1,835) - 1,274 1,274 1,088
derivative
financial
instruments -
currency hedges
Income
UK dividends 301 - 301 291 - 291 453
UK investment 1,508 - 1,508 767 - 767 2,286
income -
interest
Overseas 2,525 - 2,525 1,255 - 1,255 3,669
investment
income -
interest
Overseas 4 - 4 - - - 2
dividends
Deposit interest 1 - 1 4 - 4 12
4,339 3,148 7,487 2,317 (4,790) (2,473) 16,003
Investment (312) (168) (480) (138) (75) (213) (666)
management fee -
note 2
Other expenses (172) (1) (173) (97) (1) (98) (286)
Profit/(loss) 3,855 2,979 6,834 2,082 (4,866) (2,784) 15,051
before finance
costs and
taxation
Finance costs (16) (9) (25) (5) (2) (7) (33)
Profit/(loss) 3,839 2,970 6,809 2,077 (4,868) (2,791) 15,018
before tax
Taxation (32) - (32) (4) - (4) (42)
Profit/(loss) 3,807 2,970 6,777 2,073 (4,868) (2,795) 14,976
after tax
Return per 5.2p 4.1p 9.3p 2.9p (6.7)p (3.8)p 20.6p
ordinary share -
note 5
The total column of this statement represents the Company's statement of
comprehensive income, prepared in accordance with International Financial
Reporting Standards. The supplementary revenue and capital columns are
presented for information in accordance with the Statement of Recommended
Practice issued by the Association of Investment Companies. All items in the
above statement derive from continuing operations and the Company has no other
gains or losses. No operations were acquired or discontinued in the period.
.
CONDENSED BALANCE SHEET
Registered in Jersey No. 109714
AT 30 JUN AT 30 JUN AT 31 DEC
2013 2012 2012
£'000 £'000 £'000
Non-current assets
Investments held at fair value 121,685 102,934 117,527
through profit or loss
Current assets
Other receivables 2,292 2,442 2,407
Amounts due from brokers - 32 -
Cash and cash equivalents 4,625 5,612 5,094
6,917 8,086 7,501
Total assets 128,602 111,020 125,028
Current liabilities
Other payables (329) (346) (343)
Amount due to brokers (300) - -
Derivative financial instruments -  (161) (59) (10)
unrealised loss on forward currency
contract
(790) (405) (353)
Net assets 127,812 110,615 124,675
Capital and reserves
Stated capital - note 7 113,410 113,410 113,410
Capital reserve 12,306 (4,868) 9,336
Revenue reserve 2,096 2,073 1,929
Shareholders' funds 127,812 110,615 124,675
Net asset value per ordinary share - 175.60p 151.97p 171.29p
note 6
.
CONDENSED STATEMENT OF CASH FLOW
Trading commenced on 2 April 2012
SIX MONTHS TO 19 DEC 2011 TO 19 DEC 2011 TO
30 JUN 2013 30 JUN 2012 1 DEC 2012
£'000 £'000 £'000
Cash flow from operating
activities
Profit/(loss) before tax 6,809 (2,791) 15,018
Taxation (32) (4) (42)
Adjustment for:
Purchases of (21,302) (4,768) (18,171)
investments
Sales of investments 22,478 5,261 18,542
1,176 493 371
(Profit/)losses on (5,034) 6,069 (8,370)
investments
Exchange differences 51 (5) (123)
Loss on derivative 151 59 10
financial instruments -
currency hedges
Finance costs 25 7 33
Operating cash flows 3,146 3,828 6,897
before movements in
working capital
Decrease in receivables 115 381 416
(Decrease)/increase in (14) 263 336
payables
Net cash flows from 3,247 4,472 7,649
operating activities
before and after tax
Cash flow from financing
activities
Costs paid in formation - (444) (520)
of new company
Cash and assets received - 1,579 1,579
from City Merchants High
Yield Trust plc
Finance costs paid (25) - (26)
Equity dividends paid - (3,640) - (3,711)
note 4
Net cash flows from (3,665) 1,135 (2,678)
financing activities
Net (decrease)/increase (418) 5,607 4,971
in cash and cash
equivalents
Exchange difference (51) 5 123
Cash and cash equivalents 5,094 - -
at the beginning of the
period
Cash and cash equivalents 4,625 5,612 5,094
at the end of the period
.
NOTES TO THE INTERIM FINANCIAL RESULTS
1. Basis of Preparation
a. Accounting Standards Applied
The condensed financial statements have been prepared using the same accounting
policies as those adopted in the 2012 annual financial report. They have been
prepared on an historical cost basis, except for the measurements at fair value
of investments and derivatives, and in accordance with the applicable
International Financial Reporting Standards (IFRS) and interpretations issued
by the International Financial Reporting Interpretations Committee as adopted
by the European Union.
Where presentational guidance set out in the Statement of Recommended Practice
(SORP): Financial Statements of Investment Trust Companies and Venture Capital
Trusts' 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. Financial Results Basis
The financial results of this half-yearly financial report are the financial
results of the successor Jersey company only, including all related income,
expense and cash flows. Income, expenses and cash flows of the predecessor
company, City Merchants High Yield Trust plc, are not included in the results
for the periods 19 December 2011 to 30 June 2012 and 19 December 2011 to 31
December 2012.
2. Management Fees
Investment management fees and finance costs are allocated 35% to capital and
65% to revenue. The management fee is payable quarterly in arrears and is equal
to 0.1875% of the value of the Company's total assets under management less
current liabilities at the end of each relevant quarter, plus a fixed amount of
£22,500 per annum.
3. Taxation
The Company is subject to Jersey income tax at the rate of 0% (2012: 0%). The
overseas tax charge consists of irrecoverable withholding tax.
4. Dividends Paid
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS TO 19 DEC 2011 TO 19 DEC 2011 TO
30 JUN 2013 30 JUN 2012 31 DEC 2012
PENCE £'000 PENCE £'000 PENCE £'000
Interim in respect of 2.5 1,820 n/a n/a n/a n/a
previous period
First interim 2.5 1,820 - - 2.6 1,891
Second interim - - - - 2.5 1,820
5.0 3,640 - - 5.1 3,711
Special dividend paid by - - 2.4 1,747 2.4 1,747
City Merchants High Yield
Trust plc
5.0 3,640 2.4 1,747 7.5 5,458
A second interim dividend of 2.5p (2012: 2.5p) has been declared and will be
paid 23 August 2013 to ordinary shareholders on the register on 26 July 2013.
5. Basis of Returns
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS TO 19 DEC 2011 TO 19 DEC 2011 TO
30 JUN 2013 30 JUN 2012 31 DEC 2012
Profit/(loss) after tax:
Revenue £3,807,000 £2,073,000 £5,640,000
Capital £2,970,000 (£4,868,000) £9,336,000
Total £6,777,000 (£2,795,000) £14,976,000
Number of shares in issue during 72,786,327 72,786,327 72,786,327
the period
6. Basis of Net Asset Value per Ordinary Share
AT 30 JUN AT 30 JUN AT 31 DEC
2013 2012 2012
Shareholders' funds £127,812,000 £110,615,000 £124,675,000
Number of shares in issue at the 72,786,327 72,786,327 72,786,327
period end
7. Stated Capital
AT 30 JUN AT 30 JUN AT 31 DEC
2013 2012 2012
Stated capital £113,410,000 £113,410,000 £113,410,000
Allotted ordinary shares of no par 72,786,327 72,786,327 72,786,327
value
8. Status of Half-yearly Financial Report
The financial information contained in this half-yearly report, which has not
been reviewed or audited, does not constitute statutory accounts as defined in
Article 104 of Companies (Jersey) Law 1991. The financial information for the
period 19 December 2011 to 30 June 2012 and the half year ended 30 June 2013
have not been audited. The figures and financial information for the period 19
December 2011 to 31 December 2012 are extracted and abridged from the latest
published accounts and do not constitute the statutory accounts for that year.
By order of the Board
Invesco Asset Management Limited
Company Secretary
20 August 2013
.
DIRECTORS' RESPONSIBILITY STATEMENT
in respect of the preparation of the half-yearly financial report.
The Directors are responsible for preparing the financial report, using
accounting policies consistent with applicable law and International Financial
Reporting Standards.
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements contained within the financial
report have been prepared in accordance with the International Accounting
Standards 34 `Interim Financial Reporting';
- the interim management report includes a fair review of the information
required by DTR 4.2.7R and DTR 4.2.8R of the FCA's Disclosure and Transparency
Rules; and
- the interim management report includes a fair review of the information
required on related party transactions.
The half-yearly financial report has not been audited or reviewed by the
Company's auditor.
Signed on behalf of the Board of Directors.
Clive Nicholson
Chairman
20 August 2013
Tuesday, 16th July 2024
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