Half-yearly Report

Half-yearly financial report for the six months ended 30 June 2009 The total return on the net assets of Temple Bar during the first half of 2009 was 4.87%, which compares with a total return for the FTSE All-Share Index of 0.81%. Temple Bar's total assets, after management and other expenses, including accrued income, but before deducting interest payments, rose by 5.58%. Post-tax revenue earnings for the year were Â£11.5m compared with Â£11.9m in the equivalent period last year. The Board has declared an interim dividend of 10.50p, the same level as last year, payable on 30 September 2009 to shareholders on the register at 18 September. While investors may be disappointed that the dividend has not been increased, it is essential to highlight the large number of dividend cuts made by companies in the last year. The Temple Bar portfolio inevitably has been affected by this trend, but our manager believed it was wrong to sell shares simply because they offered reduced, or nil, dividends. While this had an effect on the revenue account, it was more than made up in the capital account. The concentrated nature of the portfolio means that the dividend payments of our largest holdings, rather than the market in general, will determine the strength of the revenue account this year. On current forecasts, the revenue generated by the portfolio during the year, excluding the one-off benefit of the VAT recovery, will not cover the gross cost of the dividend. However, any shortfall comfortably can be financed through the use of retained earnings. Of course, there is no guarantee that the news on dividends receivable will not deteriorate further from current forecasts, although the Board continues to be prepared to use retained earnings to supplement the dividend payable to shareholders. Overall, the Board feels it is prudent to target an unchanged dividend for 2009. Temple Bar issued 370,625 shares in this period at a premium to net asset value following a sustained period in which the shares had traded above their underlying asset value. Shareholders may be aware, as mentioned in my previous statements, that HMRC have conceded defeat over the charging of VAT on investment management fees. These results reflect the recovery of a sum of Â£1,856,694 representing the VAT charged on our management fees in the relevant qualifying periods for which it is permissible to claim. This has been allocated in accordance with the Company's accounting policies in force at the relevant times, with Â£880,497 being credited to capital and Â£976,197 being credited to revenue. In due course we will also receive from HMRC an additional payment representing the simple interest that has arisen on this amount. At the end of June, the value of cash, near cash and corporate bonds was approximately equal to the nominal value of the two debentures in issue. While the cash is earning only minimal interest, it provides flexibility if rapid investment action is required. John Reeve Chairman 21 July 2009 Twenty largest holdings as at 30 June 2009 Company Valuation % of Â£m portfolio BP 35,681 8.41 Royal Dutch Shell 34,073 8.03 HSBC 33,601 7.92 GlaxoSmithKline 33,047 7.79 Vodafone 29,740 7.01 Unilever 24,983 5.89 AstraZeneca 21,693 5.11 Signet Jewelers 18,093 4.26 Travis Perkins 16,451 3.88 British American Tobacco 11,168 2.63 Paddy Power 9,410 2.22 BT 9,272 2.19 Centrica 7,720 1.82 Charter International 7,254 1.71 Invensys 6,748 1.59 Wolseley 5,672 1.34 Grafton 4,820 1.14 Market Vectors ETF 4,774 1.13 Computacenter 4,694 1.11 Compass 4,178 0.98 323,072 76.16 Consolidated income statement for the six months ended 30 June 2009 30 June 30 June 31 December 2009 2008 2008 Income Income Income statement statement statement (unaudited) (unaudited) (audited) Revenue Capital Revenue Capital Revenue Capital return return Total return return Total return return Total Notes Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Investment income 11,593 - 11,593 13,169 - 13,169 22,923 - 22,923 Other operating income 384 - 384 251 - 251 595 - 595 Total income 11,977 - 11,977 13,420 - 13,420 23,518 - 23,518 Gains/(losses)on investments Gains/(losses) on fair value through profit or loss assets - 9,175 9,175 - (94,032) (94,032) - (134,284) (134,284) 11,977 9,175 21,152 13,420 (94,032) (80,612) 23,518 (134,284) (110,766) Expenses Management fees (281) (422) (703) (490) (816) (624) (937) (1,561) Other expenses (255) (133) (388) (326) (570) (801) (449) (1,062) (1,511) VAT recoverable 976 880 1,856 (231) Profit before finance costs and tax 12,417 9,500 21,917 12,863 (95,092) (82,229) 22,445 (136,283) (113,838) Finance costs (908) (1,363) (2,271) (917) (1,364) (2,281) (1,831) (2,745) (4,576) Profit before tax 11,509 8,137 19,646 11,946 (96,456) (84,510) 20,614 (139,028) (118,414) Tax - - - - - - - - - Profit for the period 11,509 8,137 19,646 11,946 (96,456) (84,510) 20,614 (139,028) (118,414) Earnings per share (basic and diluted) 19.61p 13.87p 33.48p 20.48p (165.33)p (144.85)p 35.33p (238.27)p (202.94)p An interim dividend of 10.50 pence per share (Â£6,191,000) in respect of the six months ended 30 June 2009 was declared on 21 July 2009 and is payable on 30 September 2009. An interim dividend of 10.50 pence per share (Â£6,126,000) in respect of the six months ended 30 June 2008 was declared on 22 July 2008 and was paid on 30 September 2008. A final dividend of 22.34 pence per share (Â£13,172,000) in respect of the year ended 31 December 2008 was declared on 20 February 2009 and was paid on 31 March 2009. The total column of this statement represents the Group's Income Statement, prepared in accordance with IFRS. 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 derive from continuing operations. All income is attributable to the equity holders of the parent company. There are no minority interests. Consolidated cash flow statement for the six months ended 30 June 2009 30 June 2009 30 June 31 December (unaudited) 2008 2008 Â£'000 (unaudited) (audited) Â£'000 Â£'000 CASH FLOWS FROM OPERATING ACTIVITIES Profit/(loss) before tax 19,646 (84,510) (118,414) Adjustments for: Purchases of investments Â¹ (137,225) (80,925) (184,030) Sales of investments Â¹ 126,505 99,107 199,855 (10,720) 18,182 15,825 (Gains)/losses on investments (9,175) 94,032 134,284 Financing costs 2,271 2,281 4,576 Operating cash flows before movements in working capital 2,022 29,985 36,271 Decrease in accrued income and prepayments (552) (748) - Decrease/(increase) in 1,001 19 (1,251) receivables Decrease/(increase) in - (2,256) (2,619) payables NET CASH FLOW FROM OPERATING ACTIVITIES BEFORE AND AFTER INCOME TAX 2,471 27,000 32,401 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of new 2,067 - 1,512 shares Interest paid on borrowings (2,261) (2,273) (4,558) Bank interest paid - - (2) Equity dividends paid (13,171) (12,292) (18,418) NET CASH USED IN FINANCING ACTIVITIES (13,365) (14,565) (21,466) NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS (10,894) 12,435 10,935 Cash and cash equivalents at 3,412 the start of the period 14,347 3,412 Cash and cash equivalents at the end of the period 3,453 15,847 14,347 Â¹ Purchases and sales of investments are considered to be operating activities of the Company, given its purpose, rather than investing activities. Consolidated balance sheet as at 30 June 2009 30 June 2009 30 June 31 December (unaudited) 2008 2008 Â£'000 (unaudited) (audited) Â£'000 Â£'000 NON-CURRENT ASSETS Investments held at fair value through profit or loss 424,340 442,356 404,467 CURRENT ASSETS Cash and cash equivalents 3,453 15,847 14,347 Other receivables 3,610 3,538 4,059 7,063 19,385 18,406 TOTAL ASSETS 431,403 461,741 422,873 CURRENT LIABILITIES Other payables (464) (828) (465) TOTAL ASSETS LESS CURRENT 430,939 460,913 422,408 LIABILITIES NON-CURRENT LIABILITIES Interest bearing (63,377) (63,374) (63,388) borrowings NET ASSETS 367,562 397,539 359,020 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS Ordinary share capital 14,740 14,585 14,647 Share premium 8,424 5,083 6,533 Capital reserves 315,850 350,286 307,713 Retained earnings 28,548 27,585 30,127 TOTAL EQUITY 367,562 397,539 359,020 NET ASSET VALUE PER SHARE 623.40p 681.41p 612.76p Consolidated statement of changes in equity for the six months ended 30 June 2009 Ordinary Share premium share Capital Retained Total capital account reserve earnings equity Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 BALANCE AT 1 JANUARY 2009 14,647 6,533 307,713 30,127 359,020 Profit for the - - 8,137 11,509 19,646 period 14,647 6,533 315,850 41,636 378,666 Dividend (transfer from share premium in respect of 2008 final dividend) - (83) - 83 - Dividends paid to equity shareholders - - - (13,171) (13,171) Issue of share 93 1,974 - - 2,067 capital BALANCE AT 30 JUNE 14,740 8,424 315,850 28,548 367,562 2009 Consolidated statement of changes in equity for the six months ended 30 June 2008 Ordinary Share premium share Capital Retained Total capital account reserve earnings equity Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 BALANCE AT 1 JANUARY 2008 14,585 5,083 446,741 27,931 494,340 Profit for the - - (96,455) 11,946 (84,509) period 14,585 5,083 350,286 39,877 409,831 Dividends paid to equity shareholders - - - (12,292) (12,292) Issue of share - - - - - capital BALANCE AT 30 JUNE 14,585 5,083 350,286 27,585 397,539 2008 Responsibility Statement The Directors confirm to the best of their knowledge that: - The condensed set of financial statements contained within the half-year report has been prepared in accordance with the Accounting Standards Board's Statement `Half-Yearly Financial Reports'; - The half yearly financial report, which incorporates the interim management report, includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R of important events that have occurred during the first six months of the financial year, and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and - In accordance with Disclosure and Transparency Rule 4.2.8R there have been no related parties transactions during the six months to 30 June 2009 and therefore nothing to report on any material effect by such a transaction on the financial position or performance of the Company during that period. The half-yearly financial report was approved by the Board on 21 July 2009 and the above responsibility statement was signed on its behalf by: John Reeve Chairman NOTES 1. Comparative figures The financial information contained in this half-year report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the six months ended 30 June 2009 and 30 June 2008 has not been audited. The information for the year ended 31 December 2008 does not constitute statutory accounts, but 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 237(2) or (3) of the Companies Act 1985. 2. Publication This half-year report is being send to shareholders and copies will be made available to the public at the registered office of the Company. For further information please contact: Alastair Mundy Investec Investment Management Limited 020 7597 2000

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Temple Bar Inv Trust (TMPL)

Tuesday, 16th July 2024

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