Half Yearly Results

RNS Number : 5743A

Aberdeen Asian Smaller Co's Inv Tst

21 March 2013

 



ABERDEEN ASIAN SMALLER COMPANIES INVESTMENT TRUST PLC

ANNOUNCEMENT OF UNAUDITED HALF YEARLY RESULTS

for the six months ended 31 January 2013

INTERIM BOARD REPORT

Background

In the half year under review, the performance of Asian Stock Markets was impressive against an improving global backdrop. In the same period, smaller companies strongly outperformed the general market.

I am pleased to report your Company's diluted net asset value ("NAV") return was 23.5% in the six months to 31 January 2013, ahead of both the MSCI Asia Pacific ex Japan Index's return of 13.6% and the MSCI Asia Pacific ex Japan Small Cap Index's return of 17.0%. The share price total return was 31.3% closing at 960.8p on 31 January 2013. During the period, a 0.6% discount to net asset value moved to a 5.8% premium.

Share Capital and Gearing

During the period, the Company has continued the policy of issuing new shares for cash at a premium to the underlying NAV per share in response to strong demand from the market. It is pleasing to see this trend continue with the resultant benefit to the liquidity of the Company's shares and the resultant minor uplift to NAV per share. From 1 August 2012 to the date of writing we have issued 2.5 million shares and we will continue to consider such issues as and when there is demand.

The Company has structural gearing in the form of the Convertible Unsecured Loan Stock issued last year which represents approximately 9.4% of the Company's total assets.

Overview

The policy of the major Central Banks to create liquidity was arguably the driver behind recent stock market moves. The willingness of the European Central Bank to be a lender of last resort and its pledge to keep the euro intact at all costs formed a basis for markets to move higher. A third round of quantitative easing in the US, followed by a compromise to avert a series of automatic spending cuts and tax hikes, also renewed investor appetite.

In Asia, news that China's economy may have bottomed provided further impetus to the rally. Since November 2012, better manufacturing indicators and retail sales pointed to signs of stabilisation in the economy. The economies of Indonesia, Malaysia, Thailand and the Philippines were supported by healthy domestic consumption and government infrastructure spending.  However, a decline in global trade hurt export demand in the more international economies such as South Korea, Singapore and Taiwan. In India, political dithering, a weak fiscal position and stubborn inflation hampered recent reforms to boost growth.

Portfolio

Among your Company's holdings that helped performance were those in the financials sector, which includes property, insurance and banks. At the stock level, the key contributors were the Thai consumer finance company Aeon Thana Sinsap, the Hong Kong financial group Dah Sing Financial and the Indonesian bank OCBC Nisp. Aeon Thana posted solid third-quarter profits as revenues remained healthy and provisions fell sharply. This growth should be underpinned by firm domestic demand and the expansion of its business in neighbouring countries such as Laos and Vietnam. Dah Sing, a relatively new addition to the portfolio due to its attractive valuation relative to its peers, rallied on the back of good results. Bank OCBC Nisp continued to make progress on the back of robust loan growth. Its asset quality remains stable as the bank is prudently managed and maintains high standards of credit control.

The other companies that helped performance were the Sri Lankan conglomerate John Keells, the Malaysian cement manufacturer Tasek Corp and the Indian IT company CMC. John Keells reported satisfactory results as good occupancy at its portfolio of city hotels outweighed lower profits from its bunkering and port operations. Tasek Corp was buoyed by a raft of government infrastructure projects and CMC's steady results were driven by higher margins.

Conversely, consumer-related holdings lagged the broader market as they paused for breath after their strong performance over the past few years. However, both the Thai discount store operator Siam Makro and the Hong Kong retailer Giordano International bucked the general trend. Makro benefited from a combination of a sharp rise in consumer spending after an increase in the minimum wage and from lower corporate tax rates. Giordano was aided by higher domestic and regional sales, which compensated for lower demand in China. Your Manager still maintained the bias towards consumer-related equities on conviction that Asia's expanding middle class and its increasing wealth will continue to drive domestic consumption over the long term.

In portfolio activity, Myanmar property developer Yoma Strategic Holdings, listed in Singapore, was added. Its quality property portfolio will serve as a good proxy to the local economy which your Manager believes has significant growth potential.

Another significant portfolio transaction was the share swap in November of WBL Corp shares for shares of the Straits Trading Company (STC). Your Manager believes that STC's enlarged position in WBL will allow it to unlock value for the benefit of all shareholders. Recently, however, STC's offer for the rest of the WBL shares it does not own was countered by a bid from United Engineers (UE), which at the time of writing is unlikely to succeed as the WBL share price is trading at a higher level.

Outlook

Stock markets started 2013 on a bright note but there is cause for caution in the year ahead. The global economic outlook is still clouded with uncertainties. In particular, concerns remain over the extent of the spending cuts in the US, as well as a potential flare-up in Europe's debt crisis. Investors will also focus on China's economic outlook and policy action following the leadership transition. While abundant liquidity from the ultra-loose monetary policy in the developed world has been supportive of Asian equities, this has created unintended consequences for the region's asset prices. Strong capital inflows have already prompted some governments to tighten measures in property and other asset classes to moderate the influx in search of higher yields. Historically low interest rates have also stoked inflationary fears in some economies, while the territorial dispute between China and Japan, along with elections in Australia and Malaysia this year, add a degree of political uncertainty. In all, this will not be an easy year.

Nonetheless, Asia's longer term outlook, underpinned by firm fundamentals, remains promising. Your Company's quality holdings, with proven management, robust balance sheets and sustainable businesses, should continue to stand the portfolio in good stead against an uncertain global backdrop. The smaller companies, in which this Company is invested, are well positioned to benefit from any upturn given their lower exposure to the economic challenges of developed markets.

Principal Risks and Uncertainties

The principal risks and uncertainties affecting the Company are set out in detail on pages 3 to 6 of the Annual Report and Financial Statements for the year ended 31 July 2012 and have not changed. They can be summarised under the following headings:

·      General Market Risks

·      CULS Risks

·      Ordinary Share Risks

·      Risks Relating to the Company's Investments

·      Gearing Risks

·      Foreign Exchange Risks

·      Taxation Risks

·      Accounting Practices and Policies Risk

·      Risks relating to the Appointment of the Manager

·      Legal and Regulatory Risks

Going Concern

The Company's assets consist of a diverse portfolio of listed equities which in most circumstances are realisable within a short timescale. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibility Statement

The Directors are responsible for preparing this 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 contained within the half-yearly financial report has been prepared in accordance with the Accounting Standards Board's Statement "Half Yearly Financial Reports";

·      the Interim Board Report (constituting the interim management report) includes a fair review of the information  required by rule 4.2.7R of the UK Listing Authority Disclosure and Transparency Rules (being an indication 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 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could so do).

Nigel Cayzer

Chairman

21 March 2013

Aberdeen Asian Smaller Companies Investment Trust PLC

Income Statement

	Six months ended			Six months ended
	31 January 2013			31 January 2012
	(unaudited)			(unaudited)
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments	-	65,149	65,149	-	(10,341)	(10,341)
Income (note 3)	4,115	-	4,115	3,784	-	3,784
Foreign exchange losses	-	(10)	(10)	-	(299)	(299)
Investment management fees	(1,490)	-	(1,490)	(1,274)	-	(1,274)
Administrative expenses	(508)	-	(508)	(457)	-	(457)
	_______	_______	_______	_______	_______	_______
Net return on ordinary activities before finance costs and taxation	2,117	65,139	67,256	2,053	(10,640)	(8,587)
Finance costs	(743)	-	(743)	(109)	-	(109)
	_______	_______	_______	_______	_______	_______
Net return on ordinary activities before taxation	1,374	65,139	66,513	1,944	(10,640)	(8,696)
Taxation	(228)	47	(181)	(296)	102	(194)
	_______	_______	_______	_______	_______	_______
Return on ordinary activities after taxation	1,146	65,186	66,332	1,648	(10,538)	(8,890)
	_______	_______	_______	_______	_______	_______
Return per share (pence) (note 5):
Basic	3.22	183.32	186.54	4.71	(30.14)	(25.43)
	_______	_______	_______	_______	_______	_______
Diluted	2.51	163.98	166.49	-	-	-
	_______	_______	_______	_______	_______	_______
The total column of this statement represents the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been presented as all gains and losses are recognised in the Income Statement.
All revenue and capital items in the above statement derive from continuing operations.
No operations were acquired or discontinued during the period.

Aberdeen Asian Smaller Companies Investment Trust PLC

Income Statement

	Year ended
	31 July 2012
	(audited)
	Revenue	Capital	Total
	£'000	£'000	£'000
Gains/(losses) on investments	-	19,559	19,559
Income (note 3)	9,168	-	9,168
Foreign exchange losses	-	(211)	(211)
Investment management fees	(2,665)	-	(2,665)
Administrative expenses	(867)	-	(867)
	_______	_______	_______
Net return on ordinary activities before finance costs and taxation	5,636	19,348	24,984
Finance costs	(518)	-	(518)
	_______	_______	_______
Net return on ordinary activities before taxation	5,118	19,348	24,466
Taxation	(511)	13	(498)
	_______	_______	_______
Return on ordinary activities after taxation	4,607	19,361	23,968
	_______	_______	_______
Return per share (pence) (note 5):
Basic	13.18	55.38	68.56
	_______	_______	_______
Diluted	-	-	-
	_______	_______	_______

Balance Sheet

	As at	As at	As at
	31 January 2013	31 January 2012	31 July 2012
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss	359,512	235,873	287,637
Current assets
Debtors and prepayments	1,520	677	627
Cash and short term deposits	9,161	1,681	7,042
	_______	_______	_______
	10,681	2,358	7,669
	_______	_______	_______
Creditors: amounts falling due within one year
Bank loan (note 10)	-	(10,646)	-
Other creditors	(654)	(810)	(1,149)
	_______	_______	_______
	(654)	(11,456)	(1,149)
	_______	_______	_______
Net current assets/(liabilities)	10,027	(9,098)	6,520
	_______	_______	_______
Total assets less current liabilities	369,539	226,775	294,157
	_______	_______	_______
Non-current liabilities
3.5% Convertible Unsecured Loan Stock 2019 (note 11)	(33,086)	-	(33,163)
	_______	_______	_______
Net assets	336,453	226,775	260,994
	_______	_______	_______
Capital and reserves
Called-up share capital (note 12)	9,397	9,287	9,287
Capital redemption reserve	2,062	2,062	2,062
Share premium account	24,595	14,512	14,512
Special reserve	11,715	8,372	8,372
Equity component of 3.5% Convertible Unsecured Loan Stock 2019 (note 11)	1,361	-	1,361
Capital reserve (note 7)	282,073	186,988	216,887
Revenue reserve	5,250	5,554	8,513
	_______	_______	_______
Equity shareholders' funds	336,453	226,775	260,994
	_______	_______	_______
Net asset value per share (pence) (note 6):
Basic	921.45	648.67	746.55
	_______	_______	_______
Diluted	908.31	-	-
	_______	_______	_______

Reconciliation of Movements in Shareholders' Funds

Six months ended 31 January 2013 (unaudited)
		Capital	Share		Equity
	Share	redemption	premium	Special	component	Capital	Revenue
	capital	reserve	account	reserve	CULS 2019	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 July 2012	9,287	2,062	14,512	8,372	1,361	216,887	8,513	260,994
Issue of new shares	104	-	3,819	-	-	-	-	3,923
Issue of shares from treasury	-	-	6,076	3,343	-	-	-	9,419
Conversion of 3.5% Convertible Unsecured Loan Stock (note 11)	6	-	188	-	-	-	-	194
Return on ordinary activities after taxation	-	-	-	-	-	65,186	1,146	66,332
Dividends paid (note 2)	-	-	-	-	-	-	(4,409)	(4,409)
	_____	______	______	_____	______	_____	______	_____
Balance at 31 January 2013	9,397	2,062	24,595	11,715	1,361	282,073	5,250	336,453
	_____	______	______	_____	______	_____	______	_____
Six months ended 31 January 2012 (unaudited)
		Capital	Share		Equity
	Share	redemption	premium	Special	component	Capital	Revenue
	capital	reserve	account	reserve	CULS 2019	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 July 2011	9,287	2,062	14,512	8,372	-	197,526	8,206	239,965
Return on ordinary activities after taxation	-	-	-	-	-	(10,538)	1,648	(8,890)
Dividends paid (note 2)	-	-	-	-	-	-	(4,300)	(4,300)
	_____	______	______	_____	______	_____	______	_____
Balance at 31 January 2012	9,287	2,062	14,512	8,372	-	186,988	5,554	226,775
	_____	______	______	_____	______	_____	______	_____
Year ended 31 July 2012 (audited)
		Capital	Share		Equity
	Share	redemption	premium	Special	component	Capital	Revenue
	capital	reserve	account	reserve	CULS 2019	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 July 2011	9,287	2,062	14,512	8,372	-	197,526	8,206	239,965
Issue of 3.5% Convertible Unsecured Loan Stock (note 11)	-	-	-	-	1,361	-	-	1,361
Return on ordinary activities after taxation	-	-	-	-	-	19,361	4,607	23,968
Dividends paid (note 2)	-	-	-	-	-	-	(4,300)	(4,300)
	_____	______	______	_____	______	______	______	_____
Balance at 31 July 2012	9,287	2,062	14,512	8,372	1,361	216,887	8,513	260,994
	_____	______	______	_____	______	_____	______	_____

Cash Flow Statement

	Six months ended	Six months ended	Year ended
	31 January 2013	31 January 2012	31 July 2012
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Net total return before finance costs and taxation	67,256	(8,587)	24,984
Adjustments for:
(Gains)/losses on investments	(65,149)	10,341	(19,559)
Effect of foreign exchange rate movements	10	299	211
Decrease/(increase) in accrued income	128	(30)	15
Increase in other debtors	(23)	(6)	(3)
Increase/(decrease) in other creditors	7	(3)	56
Overseas withholding tax suffered	(181)	(194)	(498)
Stock dividend included in investment income	-	-	(30)
	___________	___________	___________
Net cash inflow from operating activities	2,048	1,820	5,176
Net cash outflow from servicing of finance	(663)	(111)	(208)
Net cash outflow from financial investment	(7,661)	(4,294)	(26,086)
Equity dividends paid (note 2)	(4,409)	(4,300)	(4,300)
	___________	___________	___________
Net cash outflow before financing	(10,685)	(6,885)	(25,418)
Financing
Issue of 3.5% Convertible Unsecured Loan Stock 2019	-	-	34,452
Issue of new shares	3,395	-	-
Issue of shares from treasury	9,419	-	-
Drawdown of loan	-	5,017	14,062
Repayment of loan	-	-	(19,634)
	___________	___________	___________
Net cash inflow from financing activities	12,814	5,017	28,880
	___________	___________	___________
Increase/(decrease) in cash	2,129	(1,868)	3,462
	___________	___________	___________
Reconciliation of net cash flow to movements in net debt
Increase/(decrease) in cash as above	2,129	(1,868)	3,462
Effect of foreign exchange rate movements	(10)	(299)	(211)
Drawdown of loan	-	(5,017)	(14,062)
Repayment of loan	-	-	19,634
	___________	___________	___________
Movement in net funds/(debt) in the period	2,119	(7,184)	8,823
Net funds/(debt) at start of period	7,042	(1,781)	(1,781)
	___________	___________	___________
Net funds/(debt) at end of period	9,161	(8,965)	7,042
	___________	___________	___________
Represented by:
Cash and short term deposits	9,161	1,681	7,042
Debt due within one year	-	(10,646)	-
	___________	___________	___________
	9,161	(8,965)	7,042
	___________	___________	___________

Notes to the Financial Statements

1.	Accounting policies
	(a)	Basis of Accounting
		The accounts have been prepared in accordance with applicable UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice), with pronouncements on half yearly reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements have been prepared on a going concern basis.
		The same accounting policies used for the year ended 31 July 2012 have been applied.
	(b)	Dividends payable
		Dividends are recognised in the period in which they are paid.

		Six months ended	Six months ended	Year ended
		31 January 2013	31 January 2012	31 July 2012
2.	Dividends	£'000	£'000	£'000
	Final dividend for 2012 - 9.50p (2011 - 9.50p)	3,351	3,321	3,321
	Special dividend for 2012 - 3.00p (2011 - 2.80p)	1,058	979	979
		___________	___________	___________
		4,409	4,300	4,300
		___________	___________	___________

		Six months ended	Six months ended	Year ended
		31 January 2013	31 January 2012	31 July 2012
3.	Income	£'000	£'000	£'000
	Income from investments
	UK dividend income	31	27	106
	Overseas dividends	4,077	3,755	9,021
	Stock dividends	-	-	30
		___________	___________	___________
		4,108	3,782	9,157
		___________	___________	___________
	Other income
	Deposit interest	7	2	11
		___________	___________	___________
	Total income	4,115	3,784	9,168
		___________	___________	___________

4.	Taxation
	The taxation charge for the period has been calculated at an annualised tax rate of 23.67% (31 January 2012 - 26%; 31 July 2012 - 25.33%) and reflects the tax on offshore funds without distributor status and the subsequent transfer to income for the use of excess expenses.

		Six months ended	Six months ended	Year ended
		31 January 2013	31 January 2012	31 July 2012
5.	Return per Ordinary share	p	p	p
	Basic
	Revenue return	3.22	4.71	13.18
	Capital return	183.32	(30.14)	55.38
		___________	___________	___________
	Total return	186.54	(25.43)	68.56
		___________	___________	___________
	The figures above are based on the following:
		£'000	£'000	£'000
	Revenue return	1,146	1,648	4,607
	Capital return	65,186	(10,538)	19,361
		___________	___________	___________
	Total return	66,332	(8,890)	23,968
		___________	___________	___________
	Weighted average number of shares in issue{A}	35,558,836	34,960,210	34,960,210
		___________	___________	___________
	Diluted{B}	p	p	p
	Revenue return	2.51	-	-
	Capital return	163.98	-	-
		___________	___________	___________
	Total return	166.49	-	-
		___________	___________	___________
	The figures above are based on the following:
		£'000	£'000	£'000
	Revenue return	996	-	-
	Capital return	65,186	-	-
		___________	___________	___________
	Total return	66,182	-	-
		___________	___________	___________
	Number of dilutive shares	4,193,472	-	-
	Diluted shares in issue{A}	39,752,308	-	-
	{A} Calculated excluding shares held in treasury.
	{B} For the periods ended 31 January 2012 and 31 July 2012 there was no dilution. Where dilution occurs, the net returns for the period are adjusted for items relating to the 3.5% Convertible Unsecured Loan Stock 2019 ("CULS"). Total earnings for the period are tested for dilution. Once dilution has been determined individual revenue and capital earnings are adjusted for the savings in finance costs for the period relating to the CULS, which are reversed.

		As at	As at	As at
6.	Net asset value per Ordinary share	31 January 2013	31 January 2012	31 July 2012
	Basic
	Net assets attributable	£336,453,000	£226,775,000	£260,994,000
	Number of Ordinary shares in issue{A}	36,513,582	34,960,210	34,960,210
	Net asset value per Ordinary share	921.45p	648.67p	746.55p
		___________	___________	___________
	Diluted{B}
	Net assets attributable	£369,746,000	-	-
	Number of Ordinary shares	40,707,054	34,960,210	34,960,210
	Net asset value per Ordinary share	908.31p	-	-
		___________	___________	___________
	{A}      Excludes shares in issue held in treasury.
	{B}      The diluted net asset value per Ordinary share has been calculated on the assumption that the £34,805,818 3.5% Convertible Unsecured Loan Stock 2019 ("CULS") are converted at 830.0p per share, giving a total of 40,707,054 Ordinary shares. Where dilution occurs, the net assets are adjusted for items relating to the CULS.
	Net asset value per share - debt converted
	In accordance with the Company's understanding of the current methodology adopted by the AIC, convertible bond instruments are deemed to be 'in the money' if the cum income (debt at fair value) net asset value ("NAV") exceeds the conversion price of 830.0p per share. In such circumstances a net asset value is produced and disclosed assuming the convertible debt is fully converted. At 31 January 2013 the cum income (debt at fair value) NAV was 921.45p and thus the CULS were 'in the money'. At 31 January 2012 the Company had not issued its CULS and at 31 July 2012 the CULS were not 'in the money'.

7.	Capital reserve
	The capital reserve reflected in the Balance Sheet at 31 January 2013 includes gains of £209,937,000 (31 January 2012 - gains of £121,660,000; 31 July 2012 - gains £147,870,000), which relate to the revaluation of investments held at the reporting date.

8.	Transaction costs
	During the period expenses were incurred in acquiring or disposing of investments classified as fair value though profit or loss. These have been expensed through capital and are included within gains/(losses) on investments in the Income Statement. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		31 January 2013	31 January 2012	31 July 2012
		£'000	£'000	£'000
	Purchases	31	31	102
	Sales	-	14	49
		___________	___________	___________
		31	45	151
		___________	___________	___________

9.	Related party transactions
	Mr M J Gilbert and his alternate, Mr H Young are directors of Aberdeen Asset Management PLC and its subsidiary Aberdeen Asset Management (Asia) Ltd ("AAM Asia"). Mr Gilbert is also a director of Aberdeen Asset Managers Ltd ("AAM"). AAM Asia has an agreement to provide management services to the Company and AAM has an agreement to provide both administration and marketing services to the Company.
	The management fee is payable monthly in arrears based on an annual amount of 1.2% calculated on the average net asset value (being gross assets less liabilities but excluding from such liabilities the amount of any loan facilities drawn down) of the Company over a 24 month period, valued monthly. During the period £1,490,000 (31 January 2012 - £1,274,000; 31 July 2012 - £2,665,000) of management fees were earned by the Manager, with a balance of £257,000 (31 January 2012 - £264,000; 31 July 2012 - £239,000) being payable to AAM Asia at the period end.
	The investment management fees are charged 100% to revenue.
	The administration fee is payable quarterly in advance and is based on a current annual amount of £80,000 (31 January 2012 - £80,000; 31 July 2012 - £80,000). During the period £40,000 (31 January 2012 - £39,000; 31 July 2012 - £80,000) of fees were earned, with a balance of £20,000 (31 January 2012 - £1,000; 31 July 2012 - £20,000) payable to AAM at the period end.
	The marketing fee is based on a current annual amount of £206,000 (31 January 2012 - £173,000; 31 July 2012 - £172,000), payable quarterly in arrears. During the period £98,000 (31 January 2012 - £86,000; 31 July 2012 - £172,000) of fees were earned, with a balance of £18,000 (31 January 2012 - £15,000; 31 July 2012 - £58,000) being payable to AAM at the period end.

10.	Bank loan
	The Company has a £2 million multi currency revolving advance loan facility with Royal Bank of Scotland which is due to expire on 26 May 2014. During the six months ended 31 January 2013 no amount was drawn down from the facility.

11.	Non-current liabilities
		Number of units	Liability component	Equity component
	3.5% Convertible Unsecured Loan Stock 2019 ("CULS")	£'000	£'000	£'000
	Balance at beginning of year	35,000	33,163	1,361
	Conversion of CULS into Ordinary shares	(194)	(194)	-
	Notional interest on CULS transferred to revenue reserve	-	79	-
	Amortisation of discount and issue expenses	-	38	-
		_________	_________	_________
	Balance at end of period	34,806	33,086	1,361
		_________	_________	_________
	The 3.5% Convertible Unsecured Loan Stock 2019 ("CULS") can be converted at the election of holders into Ordinary shares during the months of May and November each year throughout their life, commencing 30 November 2012 to 31 May 2019 at a rate of 1 Ordinary share for every 830.0p nominal of CULS. Interest is paid on the CULS on 31 May and 30 November each year, commencing 30 November 2012. 100% of the interest is charged to revenue in line with the Board's expected long-term split of returns from the investment portfolio of the Company.
	During the period ended 31 January 2013 the holders of £194,182 of CULS exercised their right to convert their holdings into Ordinary shares. Following the receipt of the exercise instructions, the Company converted £194,182 (31 January 2012 - £nil; 31 July 2012 - £nil) nominal amount of CULS into 23,372 (31 January 2012 - nil; 31 July 2012 - nil) Ordinary shares.
	In the event of a winding-up of the Company the rights and claims of the Trustee and CULS holders would be subordinate to the claims of all creditors in respect of the Company's secured and unsecured borrowings, under the terms of the Trust Deed.
	As at 31 January 2013, there was £34,805,818 nominal amount of CULS in issue.

12.	Called-up share capital
	During the six months ended 31 January 2013 an additional 23,372 (31 January 2012 - nil, 31 July 2012 - nil) Ordinary shares of 25p each were issued after 194,182 (31 January 2012 - nil, 31 July 2012 - nil) nominal amount of 3.5% Convertible Unsecured Loan Stock 2019 were converted at 830.0p each. The total consideration received was £nil.
	In addition, during the six months ended 31 January 2013 an additional 420,000 (31 January 2012 - nil, 31 July 2012 - nil) new Ordinary shares of 25p each were sold. The total consideration received was £3,923,000 (31 January 2012 - £nil, 31 July 2012 - £nil).
	In addition, during the six months ended 31 January 2013 an additional 1,110,000 (31 January 2012 - nil, 31 July 2012 - nil) Ordinary shares from treasury of 25p each were issued. The total consideration received was £9,419,000 (31 January 2012 - £nil; 31 July 2012 - £nil).
	At the end of the period there were 37,589,872 Ordinary shares in issue, of which 1,076,290 were held in treasury.

13.	Events after the reporting period
	Subsequent to the reporting period end the Company has issued a further 955,000 new Ordinary shares at a total consideration received, including transactions costs, of £9,575,712. Following these share issues there are 38,544,872 Ordinary shares in issue, of which 1,076,290 are held in treasury.

14.	Half-Yearly Report
	The financial information in this report does not comprise statutory accounts within the meaning of Section 434 - 436 of the Companies Act 2006. The financial information for the year ended 31 July 2012 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified and contained no statement under Section 498 (2), (3) or (4) of the Companies Act 2006. The interim accounts have been prepared using the same accounting policies as the preceding annual accounts.
	Ernst & Young LLP has reviewed the financial information for the six months ended 31 January 2013 pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

15.	This Half-Yearly Report was approved by the Board and authorised for issue on 21 March 2013.

Copies of the Company's Half Yearly Report for the six months ended 31 January 2013 will be posted to shareholders in early April 2013 and will be available thereafter on the Company's website:
www.asian-smaller.co.uk* and from the registered office, Bow Bells House, 1 Bread Street, London EC4M 9HH.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements.  Investors may not get back the amount they originally invested.

* Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

Aberdeen Asset Management PLC

Secretaries

21 March 2013

Independent Review Report to Aberdeen Asian Smaller Companies Investment Trust PLC

Introduction

We have been engaged by Aberdeen Asian Smaller Companies Investment Trust PLC ("the Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 January 2013 which comprises the Income Statement, Balance Sheet, Reconciliation of Movements in Shareholders' Funds, Cash Flow Statement and the related notes 1 to 15. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our 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 Services Authority.

As disclosed in note 1, the annual financial statements of the Company are prepared in accordance with United Kingdom Generally Accepted Accounting Practice. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the Accounting Standards Board Statement "Half-Yearly Financial Reports".

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 financial 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 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 condensed set of financial statements in the half-yearly financial report for the six months ended 31 January 2013 is not prepared, in all material respects, in accordance with the Accounting Standards Board Statement "Half-Yearly Financial Reports" and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Ernst & Young LLP

Edinburgh

21 March 2013

 

END

 

 

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