Annual Financial Report
STANDARD LIFE EQUITY INCOME TRUST PLC
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2016
1. CHAIRMAN'S STATEMENT
Performance
Taken in isolation, the headline numbers for the year to 30 September 2016 do not make pleasant reading. The Net Asset Value Total Return for the year was 0.9%. By contrast, the FTSE All-Share Index returned 16.8%. Unsurprisingly, our share price has suffered over the last twelve months. The discount widened from 0.4% a year ago to 4.4% at 30 September 2016, producing a total return to shareholders for the year of -2.7%. This is disappointing.
However, it is important to remember the mandate that the Manager has been given. Standard Life Investments has been tasked with investing the portfolio in the UK market on an unconstrained basis, selecting investment ideas from within the FTSE All-Share Index on a stock specific basis. The expectation is that, over the long term, this approach will deliver returns better than the market or index from which the investments are selected. Thomas Moore is the individual who has been managing the portfolio since 2011 and, overall, he has achieved this objective. Clearly, in the year just finished this was not the case, but over the last five years, the Net Asset Value Total Return has been 99.3%, compared with the total return on the FTSE All-Share Index of 68.9%.
The reasons for the severe underperformance in 2016 are discussed in detail in the Manager's report in Section 2. I have concluded that this was the combination of two factors. The first was a normal reversal of stock market trends in which stocks which had performed badly, for valid fundamental reasons, such as oil and mining companies, began to perform better in early 2016 as investors came to realise that they had perhaps overestimated the difficulties such companies faced. We had little exposure to such stocks, whose long-term prospects as reliable dividend payers our Manager believes to be uncertain, and, as a result, the Company underperformed the market in the first calendar quarter of 2016.The second factor has been much more important - the result of the European referendum in June. The vote to leave the European Union, which led immediately to a sharp devaluation of sterling, was not expected by the market, our Manager or your Board. Our portfolio suffered in comparison with the overall market, which has heavy weightings in oils, miners, consumer staples, such as Unilever and Diageo, and pharmaceuticals, largely because of its emphasis on mid and small capitalisation companies. These factors resulted in a dramatic decline of 9.8% in our net asset value in the last week of June.
This, however, is water under the bridge. I am glad to say that our manager has held his nerve and performance has stabilised since the end of June, with a net asset value total return up to 31 October 2016 of 8.9%, 1.6% ahead of the index.
We have a much more encouraging story to report on the revenue account. With the great majority of our holdings producing good results and continuing to distribute significant amounts in the form of special dividends, the basic revenue return per Ordinary share was up 4.3% to 17.92p compared to the 17.18p earned last year. The diluted revenue return per share increased by 5.6% to 17.48p from 16.55p.
Dividends
The Board recommends a fourth quarterly dividend of 5.0p, bringing total dividends for the year to 15.4p, an increase of 4.8% on last year. For comparison the Retail Prices Index (RPI) increased by 2.0% over the year to 30 September 2016. Subject to shareholder approval at the Annual General Meeting to be held on 15 December 2016 this dividend will be paid on 16 December 2016 to shareholders on the register on 25 November 2016 with an associated ex-dividend date of 24 November 2016. This is the sixteenth consecutive increase in annual dividend.
Gearing
The Company continues to have a £30m bank facility with Scotiabank (Ireland) Ltd. This facility was in use throughout the year, with the average amount drawn down being £25.6m, reflecting our positive view of the prospects for the companies in our portfolio. The weighted cost of financing this facility was 1.5%. Unlike last year, when gearing had a positive effect on our results, this year there was a small negative contribution of -0.4% to our performance. It is perhaps worth saying that in eight of the ten previous years, having gearing has been a positive factor for shareholder returns.
Share Capital
Subscription shares
During the year to 30 September 2016, the Company issued 1,301,138 new Ordinary shares at 320p per share resulting from the exercise of Subscription shares, raising some £4.2m.
3,895,938 Subscription shares remain outstanding and holders need to be aware that this December is the last occasion on which they can exercise their subscription rights. We will be writing to all registered holders with a reminder of the final exercise date and information on what happens to any subscription rights not exercised.
Ordinary shares
During the first six months of the year, when the shares were trading at a premium, the Company issued 1,005,000 new Ordinary shares at an average share price of 449p, raising a total of £4.5m.
Management Charges
The Board of the Company has agreed with the Manager, Standard Life Investments, to a tiering of the management fee. The current agreement, whereby the management fee is charged at 0.65% of total assets will continue to apply to the first £250m of assets. On all assets over and above £250m a lower rate of 0.55% will apply.
Shareholder relations
Our Manager, Standard Life Investments, has an ongoing programme of active engagement with existing and potential shareholders. Much of this is undertaken by Thomas, but the Board is keen to engage our shareholders on a regular basis and in addition to the AGM, it hosted a meeting in Edinburgh for representatives of leading wealth management firms. Private investors will be very welcome at our AGM, to be held this year on 15 December 2016 at our Manager's London office on the 34th floor of 30 St. Mary Axe (the Gherkin). The meeting will start at 11.30am and will include a presentation on our investments from Thomas.
25 Years
This is the 25th annual report of the Company. It was set up with £23.1m and its first full year's dividend was 3.45p. Over the last 25 years the net assets of the Company have grown to £199.7m and the compound growth in the NAV per share and the dividend have been 6.4% and 6.2% respectively. This can be compared to the annualised return of 4.4% from the FTSE All-Share Index and the 2.7% rise in inflation over the same period.
Governance and Board
Your Board has again conducted a full annual review of strategy and an evaluation of itself. Your Board continues to consider that the main service providers to the Company perform well and are fairly rewarded.
As previously announced, Keith Percy is retiring this year, having served as a Director since the Company was formed in 1991. Over this quarter century he has made an invaluable contribution to the Company's success. We wish him well in his retirement from a long and very distinguished City career. His role as Senior Independent Director will be taken by Jeremy Tigue and that of Chairman of the Nomination Committee by Mark White and we are now advanced in our search for a new Director.
Continuation Vote
At the forthcoming Annual General Meeting of the Company in December, the shareholders will be asked to vote to approve an ordinary resolution to the effect that the Company continues as an investment trust. This process is laid down in the Articles of Association of the Company and takes place every five years. The Board strongly recommends that shareholders vote in favour of the continuation vote and will be doing so in respect of their own shares in the Company.
Outlook
I write this in the immediate aftermath of the US Presidential election, which has been one of many negative political factors which have overhung markets in 2016. The election of Donald Trump is further evidence of the widespread voter disaffection visible in many Western democracies today. At this stage, it is unclear to what extent he will be able to persuade his Republican colleagues in Congress to support the expansionary fiscal policy he appears to favour, though tax cuts for corporations and individuals are likely to be less controversial with them. In the UK we are only beginning to sense the extent of the difficulties and problems which Brexit is going to create for both the Government and people of this country. In the financial world there remain any number of seemingly intractable problems associated with extremely low interest rates, which are so damaging for individual savers, long-term institutions such as insurance companies and pension funds and perhaps especially banks, which remain a key industry for a soundly functioning economy.
However, successful equity investing requires an optimistic frame of mind and there is every reason to believe that there are many businesses which can do well even if overall conditions are difficult and uncertain. Careful and insightful stock selection remains the key to success, and I am confident that our Manager is capable of providing this. I firmly believe that the difficulties we experienced in the first half of 2016 will prove to have been a one off event and that the results to be reported in twelve months' time will be much more satisfactory than this year's.
Richard Burns
Chairman
15 November 2016
2. MANAGER'S REPORT
Market review
The dominant drivers of the UK equity market in the last financial year were macro-economic and political in nature. Slow global growth coupled with ultra-loose monetary policy and some major political events, most notably the UK referendum vote to leave the EU, all resulted in some wild swings in bond yields and currencies, thereby causing significant divergence in the returns of the various market sectors and of individual stocks.
The single most notable event during the period was the UK's referendum on EU membership. In the run up to the referendum markets were pricing in a vote to remain, and the market reaction to the result was inevitably pronounced. In the wake of the outcome, the Bank of England cut rates to 0.25% and announced further asset purchases. The signal sent by policy-makers was that they are ready to act to support economic growth at a time of uncertainty over the UK's future relationship with the EU. This resulted in a dramatic slide in Sterling, which hit a 31-year low. While political uncertainty remained heightened after the referendum, UK economic data has surprised economists by holding up far better than expected.
The net effect of these factors was favourable for large-cap, overseas-earning, stocks and unfavourable for small and mid-cap domestic earning stocks.
Performance
For the year ending 30 September 2016, the Company's net asset value total return was 0.9%, underperforming the FTSE All-Share Index which rose by 16.8%. Over the same period, the share price fell by 6.2% from 439.0p to 412.0p, while the total shareholder return, with dividends reinvested, was -2.7%. At the same time the gross revenue generated by the portfolio increased by 13.1% and revenue earnings per share rose by 4.3% to 17.92p from 17.18p. The difference between the two rates of change is largely explained by the 5.4% increase in the number of shares in issue during the year. On a diluted basis, the earnings per share rose by 5.6% to 17.48p from 16.55p.
The Trust's objective is to provide shareholders with an above average income from their equity investment while also providing real growth in capital and income. The approach that we adopt is to look to deliver returns by investing in the UK equity market on an unconstrained and index-agnostic basis. That means that we look for companies which we believe will be able to deliver capital and income growth over time. The weak relative performance that the portfolio delivered this year is due to its limited exposure to large-cap overseas orientated stocks that significantly outperformed small and mid-cap domestically orientated stocks before and after the EU referendum. An index-agnostic approach can perform poorly at times of market stress, when the market is typically led by a narrow cross-section of the largest stocks. Of particular note, not holding BP or Royal Dutch Shell impacted performance as investors anticipated an improvement in profitability as the oil price recovered. Performance also suffered from not holding defensive stocks British American Tobacco and GlaxoSmithKline, whose status as bond proxies allowed them to rally as bond yields fell. We do not hold these stocks as we see them as unattractively valued in relation to their fundamental prospects.
Among stocks held by the Trust, the biggest detractor was temporary recruitment company Staffline, which fell sharply on fears over the potential revenue impact from a hard version of Brexit that could limit the supply of available workers. We believe that the risks are overstated and we see Staffline as significantly undervalued in relation to its growth prospects.
Another major detractor to performance was BT, which fell on fears over the increase in its pension deficit as gilt yields fell, raising the risk of increased top-up payments following the actuarial review that is due in 2017. We believe these additional payments are likely to be affordable given the strong cash generation of the business. The market is also concerned about regulatory risk. We believe that both of these risks are now more than reflected in the share price.
The biggest positive contributors to the Trust's performance were all stocks benefiting from a high proportion of overseas earnings. Software company, MicroFocus, responded favourably to results that highlighted continued success in operational delivery, leading to a 50% increase in its dividend per share. Towards the end of the period, the stock surged on the announcement of its proposed acquisition of Hewlett Packard's software assets. Its management team is known for its strong M&A track record. The 2014 Attachmate acquisition saw margins rise from 33% to 46%. Management is expecting to achieve similar margin improvement with HP's software assets. Also in the software sector, Sage responded to encouraging results that underlined the new management team's success in accelerating revenue growth by improving sales execution and increasing product innovation. The shares of RELX (formerly known as Reed Elsevier) appreciated on evidence of resilient revenue growth and margin improvement, and Rio Tinto benefited from a recovery in commodity prices early in 2016.
Activity
Macro-driven markets tend to throw up stock-specific opportunities, allowing the Trust to build holdings at attractive valuations. We bought a new holding in cruise business Carnival, which offers the prospect of rapid dividend growth. Concerns over the rising oil price and the Zika virus hit the share price earlier in the year, allowing us to build a position at an attractive valuation.
The Trust bought a new holding in John Laing Group whose expertise and track record in green-field infrastructure projects appeared to be under-appreciated by the market given the stock's discount to book value. The policy shift in many countries towards infrastructure spending is set to boost the company's pipeline of bidding prospects.
The Trust bought back into Rio Tinto at depressed levels in early 2016 when fears over a prolonged weakening in the Chinese economy had become priced into the valuation. The company has a robust balance sheet, while its low production costs make it the strongest player globally in the iron ore market. Rio Tinto's high free cash flow yield, easily covering its dividend, makes it a clear preference over both the oil majors and BHP Billiton.
A new holding in leading global auto retailer Inchcape was purchased during the period. The low valuation implies that the market under-estimates the company's ability to deliver solid revenue growth across a range of geographies including UK, Australasia, Asia and Emerging Markets. Management plans to leverage the company's global scale to deepen relationships with manufacturers and acquire more distribution contracts in new and existing markets. The combination of strong revenue growth, a solid balance sheet and high free cash flow yield should underpin attractive dividend growth in the years ahead.
The Trust sold its holding in Rightmove whose elevated valuation reflected the market's confidence in its ability to use its dominant market position to increase prices over a prolonged period of time, in contrast to the market's scepticism at the time of initial purchase in 2014 when competitive worries had created a buying opportunity.
The Trust also sold its holding in gaming software business, Playtech, early in the period following a shift in strategy from its established Business to Business gaming software business towards spread betting.
The Trust sold Barclays early in the period following a trading update that highlighted a continued struggle to improve returns due to weak profitability, rising regulatory costs and capital requirements, as well as fines and litigation. On-going regulatory capital pressure contributed to Barclays' subsequent decision to halve its dividend.
The Trust took some profits in kitchen manufacturer, Howden Joinery, before and after the EU referendum as the relatively high valuation appeared to price in continued strong delivery, in contrast to other UK domestic stocks whose valuations had become compellingly cheap.
Outlook
Revenues of the companies in the portfolio are sourced equally from the UK and overseas. This is in contrast to the FTSE All-Share index which is far more biased towards overseas revenues, mainly due to a handful of the largest companies at the top of the index. This macro factor has been a major cause of the Trust's under-performance against the index during a period of extreme Sterling weakness. While having limited exposure to mega-caps was a drag on performance in the short term due to this currency effect, we continue to question the dividend sustainability of some of the largest companies in the UK. We also see limited scope for defensive companies, which are often seen as proxies for bonds, to grow their dividends in the future. We remain confident that the portfolio's positioning away from these mega-cap income stocks will provide better opportunities to grow both the income and the capital accounts in the future.
By contrast, we continue to have confidence in our UK domestic holdings. Management commentary from these domestic companies has remained buoyant post-Brexit, supported by solid, better than expected, UK economic data. Initial fears of a sharp drop in activity are looking misplaced. Consumer sentiment remains benign and household cash flows look set to be supported by the strong labour market, wage growth, higher personal allowances and lower interest payments, which should largely offset higher import prices. Against this backdrop, the savage de-rating of domestic-earning stocks looks over-done.
The other major macro factor to constrain the Trust's performance during the period was the persistent low level of bond yields. This has had a double impact on the portfolio, supporting the share prices of consumer staples that act as bond proxies and undermining the share prices of some of the Trust's holdings in the financial sector. Brexit has been a wake-up call to global policymakers as it demonstrated rising levels of popular discontentment, which can be linked to the unconventional policies pursued since the 2008 financial crisis. There is increasing evidence of the unintended consequences that quantitative easing is seen to be creating for the global economy including the pressure it exerts on savers, pension funds, insurance companies and banks.
A shift in emphasis from monetary policy towards fiscal policy would help politicians to show that they are in touch with the electorate - and potentially drive a rebalancing of the economy and markets. Even without a rise in bond yields, we see the potential for a sharp sell-off in bond-proxy sectors, such as consumer staples, as it is increasingly hard to justify their valuations in the context of their anaemic growth rates. Conversely, we see the potential for a sharp rebound in many financial stocks whose underlying resilience has been ignored as a result of the market's preference for other sectors during the prolonged period of low interest rates globally.
It is one of the core beliefs underpinning our investment process that the valuation at the time of starting an investment will turn out to be a key determinant of that investment's return. At times of macro stress, investors become less focused on valuation. We expect that this will change when investors recognise that underlying corporate fundamentals do not justify either the under-performance of the more cyclical sectors or the outperformance of the more defensive sectors.
Macro-driven markets can present short-term challenges to investors who are focused on stock-level corporate fundamentals. However we expect that over the longer term our approach will be rewarded as the market will eventually become less focused on top-down macro drivers, putting the spotlight back onto corporate fundamentals. This is already evident from the weakening performance of many overseas earners since the beginning of July, including some of the most highly-rated consumer staples stocks, as these companies report results that the market finds disappointing in the context of their extended valuations. In contrast, many domestic earners have beaten expectations, providing the catalyst for a valuation re-rating from very modest levels. The valuation gap between overseas and domestic earners is more extended than any time since the 2008-09 global financial crisis, which increases our conviction that this period will provide opportunities for patient investors who stay focused on stock-level fundamentals.
The health of the portfolio is underlined by the continued positive momentum of the revenue account, reflecting the success of our investment process in identifying under-appreciated companies whose cash flows and balance sheets will support sustainable dividend growth. While it is disappointing that the Trust's NAV has trodden water during a period of rising markets, we remain confident that the Trust's index-agnostic approach will deliver superior growth in capital and income over the medium term. Share prices ultimately respond to the cash flows and dividends that underpin them, providing the scope for a healthy rebound once macro concerns ease. However, we expect that, over the longer term, our approach will have the greatest chance of identifying the stock opportunities that will allow it to build on its good
5-year track record.
Thomas Moore
Standard Life Investments
15 November 2016
|
Relative Performance Attribution |
% |
|
Stock Selection |
-13.0 |
|
Gearing |
-0.4 |
|
Interest |
-0.1 |
|
Expenses |
-0.4 |
|
Total |
-13.9 |
The relative performance of -13.9% represents the geometric difference between the decrease in the Company's net asset value of 3.1% and the increase in the FTSE All-Share Index of 12.6% (for the year ended 30 September 2016).
|
Top 5 Stock Level Contributors |
Relative Position (%)# |
Contribution (%) |
|
Micro Focus International |
2.1 |
1.1 |
|
Sage |
3.4 |
0.7 |
|
Barclays* |
-1.3 |
0.7 |
|
RBS+ |
-0.4 |
0.3 |
|
Rio Tinto |
0.3 |
0.3 |
|
Bottom 5 Stock Level Contributors |
Relative Position (%)# |
Contribution (%) |
|
Staffline |
1.9 |
-1.3 |
|
Royal Dutch Shell+ |
-6.3 |
-0.9 |
|
BP+ |
-3.4 |
-0.7 |
|
British American Tobacco+ |
-3.8 |
-0.7 |
|
GlaxoSmithKline+ |
-3.5 |
-0.6 |
# based on average position for the year
+ stocks not held by the Company
* stocks sold during the year by the Company
Source: Standard Life Investments as at 30 September 2016
3. FINANCIAL HIGHLIGHTS
|
|
Year to 30 September 2016 |
|
Share price total return |
-2.7% |
|
Increase in total dividends |
4.8% |
|
Net asset value total return (diluted) |
0.9% |
|
FTSE All-Share Index total return |
16.8% |
Total return assumes that the dividends paid to shareholders are re-invested in Ordinary shares at the time the Ordinary shares are quoted ex-dividend.
|
|
30 September 2016 |
30 September 2015 |
% change |
|
Capital |
|
|
|
|
Net asset value per Ordinary share Basic Diluted |
441.1p 431.5p |
455.2p 440.7p |
-3.1% -2.1% |
|
Ordinary share price |
412.4p |
439.0p |
-6.1% |
|
Subscription share price |
79.5p |
114.0p |
-30.3% |
|
Benchmark capital return |
3,755.3 |
3,335.9 |
12.6% |
|
Discount of Ordinary share price to net asset value |
|
|
|
|
Basic |
-6.5% |
-3.6% |
|
|
Diluted |
-4.4% |
-0.4% |
|
|
Total assets |
£226.3m |
£221.9m |
2.0% |
|
Shareholders' funds |
£199.7m |
£195.6m |
2.1% |
|
Ordinary shares in issue |
45,282,829 |
42,976,691 |
5.4% |
|
|
|
|
|
|
Gearing |
|
|
|
|
Gearing |
7.5% |
7.7% |
|
|
|
|
|
|
|
Earnings and Dividends Revenue return per Ordinary share Basic Diluted Total dividends for the year Dividend yield |
17.92p 17.48p 15.40p 3.7% |
17.18p 16.55p 14.70p 3.3% |
4.3% 5.6% 4.8% |
|
|
|
|
|
|
Expenses Ongoing charges |
0.96% |
0.94% |
|
4. BUSINESS REVIEW
Introduction
The Company carries on business as an investment trust.
The Board
The Board consists wholly of non-executive Directors. The Chairman is Mr Richard Burns and as at 30 September 2016 other Board members were Ms Josephine Dixon, Mr Keith Percy, Mr Jeremy Tigue and Mr Mark White. As at 30 September 2016, the Board consisted of four men and one woman. As the Company is an investment trust that has outsourced management of its portfolio, most of its activities are undertaken by the Manager and it does not have any employees of its own.
Investment Objective
The objective of the Company is to provide shareholders with an above average income from their equity investment while also providing real growth in capital and income.
Business Model and Investment Policy
The management of the Company's investments and the day to day operation of the Company is delegated to Standard Life Investments (Corporate Funds) Limited (the "Manager").
The Directors set the investment policy which is to invest in a diversified portfolio consisting mainly of quoted UK equities which will normally comprise between 50 and 70 individual equity holdings.
In order to reduce risk in the Company without compromising flexibility:
• no holding within the portfolio will exceed 10% of aggregate net assets; and
• the top ten holdings within the portfolio will not exceed 50% of net assets.
The Company may invest in convertible preference shares, convertible loan stocks, gilts and corporate bonds.
The Directors set the gearing policy which is to operate within parameters of between 5% net cash and 15% net gearing for the level of gearing that can be employed. The Directors have delegated responsibility to the Manager for the operation of the gearing level within the above parameters.
Manager's Investment Process
The Manager's investment process combines asset allocation, stock selection, portfolio construction, risk management and dealing. The investment process is research intensive and is driven by the Manager's distinctive 'Focus on Change' which recognises that different factors drive individual stocks and markets at different times in the cycle. This flexible but disciplined investment process ensures that the Manager has the opportunity to perform in different market conditions.
Results and Dividend
Details of the Company's results are shown in the Financial Highlights in Section 3.
The total revenue return attributable to Ordinary shareholders for the year ended 30 September 2016 amounted to £7,956K (2015: £7,044K).
Dividends are paid on a quarterly basis, in March, June, September and December.
In 2016 three quarterly dividends were paid as follows:
18 March 2016 3.40p per share
24 June 2016 3.40p per share
23 September 2016 3.60p per share
The Directors are now recommending to shareholders that a fourth quarterly dividend of 5.00 pence (2015 - fourth quarterly dividend of 4.70 pence) be paid on 16 December 2016 to shareholders on the share register as at the close of business on 25 November 2016. The ex- dividend date is 24 November 2016.
Monitoring Performance - Key Performance Indicators
The key performance indicators (KPIs) shown below have been identified by the Directors to determine the progress of the Company and a record of these measures, with comparatives, is disclosed in the Financial Highlights in Section 3.
• Net asset value total return relative to the Company's benchmark (FTSE All-Share Index total return)
• Share price (capital return)
• Premium or Discount to net asset value
At each Board meeting the Directors consider a number of performance measures, including the KPIs and attribution analysis, to assess the Company's success in achieving its investment objective.
The Board considers the performance measures over various time periods and against similar funds.
Principal Risks and Uncertainties and Changes in the Year
The Board has an ongoing process for identifying, evaluating and managing the principal risks and uncertainties of the Company and has carried out a robust review. The process is regularly reviewed by the Board.
Most of the Company's principal uncertainties and risks are market related and no different from those of other investment trusts that invest primarily in the UK listed market. Risks may vary in significance from time to time and the controls and actions to mitigate these are described below.
The Board considers the following to be the principal risks and uncertainties:
|
Principal Risk |
Risk Mitigation and Actions in the year
|
|
Investment Performance |
The Board recognises that market risk is significant in achieving performance and your Board reviews strategy and investment guidelines to ensure that these are appropriate. Regular reports are received from the Manager on stock selection, asset allocation, gearing and the costs of running the Company. The performance is reviewed in detail and discussed with the Manager at each Board meeting.
The Board regularly reviews the impact of geopolitical instability and change on market risk. The Board is mindful of the continuing uncertainty following the UK's referendum decision to leave the EU and, along with the Manager, is closely monitoring the situation.
The Board, through its review process, did not identify any specific new actions required to mitigate performance risks during the year. The Manager's Report in Section 2 explains the changes made within the portfolio during the year.
|
|
Operational Risk |
In common with most investment trusts the Board delegates the operation of the business to third parties, the principal delegate being the Manager. As part of the annual assessment of key third party service providers, the internal control reports of the service providers are reviewed.
During the year there were no issues identified that compromised the security of the assets and the Board received assurances on the internal control environment of service providers from these reports.
The departure of the Manager's Head of Investment Companies during the year created an operational risk but the Manager implemented adequate interim measures and has subsequently employed an experienced individual to take over the position. The Board monitored the situation closely and is satisfied that the change of key personnel at the Manager did not create any operational issues for the Company.
|
|
Discount/Premium to NAV |
A significant share price discount or premium to net asset value per share could lead to high levels of uncertainty and could potentially reduce shareholder confidence.
The Board keeps the level of the Company's discount/premium under regular review. In the first four months of the financial year, the Company's shares were trading at a small premium and the Board issued 1,005,000 new Ordinary shares to satisfy market demand. The premium moved to a discount in the run up to the EU referendum in June and the shares ended the year at a discount of 4.4%.
|
|
Regulatory Risk |
The Company operates in an environment with significant regulation including the UKLA Listing Rules, the UK Companies Act, the Corporation Tax Act 2010 and the Alternative Investment Fund Managers Directive ('AIFMD').
During the year, the EU's Market Abuse Regulation ('MAR') came into force. The Company has updated its policies and procedures to ensure compliance with MAR.
There has been no significant change in this risk during the year though the environment as a whole is considered to be one of increasing costs for compliance with ever increasing regulation. |
Employee, Environmental and Human Rights Policy
As an investment trust which has outsourced the management of its portfolio, the Company has no direct social community, employee or environmental responsibilities, nor is it responsible for the emission of greenhouse gases. Its principal responsibility to shareholders is to ensure that the investment portfolio is properly managed and invested. The Company has no employees and, accordingly, has no requirement to separately report in this area as the management of the portfolio has been delegated to the Manager. The Manager engages with the Company's underlying investee companies in relation to their corporate governance practices and in developing their policies on social, community and environmental matters and further information may be found in the Statement of Corporate Governance. In light of the nature of the Company's business there are no relevant human rights issues and the Company does not have a human rights policy.
Bank Facilities
The Company has a £30 million sterling revolving credit facility with Scotiabank (Ireland) Limited. During the year, funds were periodically drawn down from the facility as determined by the Manager. As at 30 September 2016, £26m had been drawn down. Additional information may be found in the "Gearing" section of the Chairman's Statement.
Future Strategy
The Board and Manager intend to maintain the strategic policies set out above for the year ending 30 September 2017 as it is believed that these are in the best interest of shareholders.
Approval of the Strategic Report
The Strategic Report was approved by the Board of Directors on 15 November 2016 and signed on its behalf by:
Richard Burns
Chairman
15 November 2016
5. GOING CONCERN
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least the next 12 months. In considering this, the Directors took into account the diversified portfolio of readily realisable securities which can be used to meet short-term funding commitments, and the ability of the Company to meet all of its liabilities and ongoing expenses.
The Company's Articles of Association require that at this year's AGM and thereafter at every fifth AGM, the Directors shall propose an ordinary resolution to the effect that the Company continues as an investment trust. After consulting with the Company's major shareholders, the Board anticipates that the resolution concerning the continuation of the Company will be supported and passed by shareholders. The Board is committed to the ongoing success and promotion of the Company and the Directors will be voting in favour of the resolution in respect of their own shares and recommend that shareholders do likewise.
Accordingly, the Directors believe that it is reasonable for the Financial Statements to continue to be prepared on a going concern basis.
6. VIABILITY STATEMENT
In accordance with Provision C.2.2 of the UK Corporate Governance Code revised in April 2016 and Principle 21 of the AIC Code of Corporate Governance, the Board has assessed the Company's prospects for a five year period. The Board considers five years to be an appropriate period for an investment trust company with a portfolio of equity investments based on the cycle for the continuation vote, and the financial position of the Company as detailed in the Chairman's Statement, the Manager's Report and the Business Review of this Annual Report.
The Board has considered the Company's financial position and its ability to liquidate its portfolio and meet its liabilities and draws attention to the following points which the Board took into account in its assessment of the Company's future viability:-
a) The Company's investments are traded on a major stock exchange and there is a spread of investments held.
b) The Company is closed ended in nature and therefore does not need to sell investments when shareholders wish to sell their shares.
c) The Company's main liability is its bank loan of £26million, which represents 13% of the Company's net assets.
d) The Company's cash balance (including money market funds) at 30 September 2016 was £11m.
e) The Board has considered the principal risks faced by the Company, together with the steps taken to mitigate these risks, as detailed in the Business Review and in the Statement of Corporate Governance and referred to in Note 15 of the Financial Statements and has concluded that the Company would be able to take appropriate action to protect the value of the Company. The Company takes any potential risks to its ongoing success and ability to performance very seriously and works hard to ensure that risks are kept to a minimum at all times.
f) Expenses are relatively predictable and modest in relation to asset values.
g) There are no capital commitments currently foreseen that would alter the Board's view.
As detailed in the Chairman's Statement, the Company has a good long-term performance record and the Directors consider the Company's future prospects to be positive.
In assessing the Company's future viability, the Board has assumed that investors will wish to continue to have exposure to the Company's activities in the form of a closed ended entity, long-term performance will continue to be satisfactory and the Company will continue to have access to sufficient capital.
Therefore, after careful consideration of the Company's current position and future prospects and taking into account its risk-aware attitude, the Directors have a reasonable expectation that, with the support of shareholders, the expectation is for the continuation vote to be passed, that the Company will be able to continue in operation and meet its liabilities as they fall due over the five year period of its assessment.
7. STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND ACCOUNTS
The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations. The Directors have elected to prepare the Financial Statements in accordance with UK Accounting Standards, (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these Financial Statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent; and
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the Financial Statements.
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its Financial Statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that comply with applicable laws and regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's webpage hosted by the Manager. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Directors are also responsible for ensuring that the Annual Report and Financial Statements, taken as a whole is fair, balanced and understandable and provides the information necessary to assess the Company's position, performance, business model and strategy.
Directors' Responsibility Statement
Each Director confirms that:
• the Financial Statements have been prepared in accordance with UK Accounting Standards, (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and applicable law and give a true and fair view of the assets, liabilities, financial position and profit of the Company as at 30 September 2016;
• the Strategic Report includes a fair review of the development and performance of the business and the position of the Company together with a description of the principal risks and uncertainties that the Company faces; and
• the Annual Report and Financial Statements, taken as a whole is fair, balanced and understandable and provides the information necessary to assess the Company's position, performance, business model and strategy.
For and on behalf of the Board of Standard Life Equity Income Trust plc
Richard Burns
Chairman
15 November 2016
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 September
|
|
|
2016 |
2015 |
||||
|
|
Notes |
Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
|
Net (losses)/gains on investments at fair value |
9 |
- |
(4,578) |
(4,578) |
- |
20,270 |
20,270 |
|
Currency gains/(losses) |
|
- |
23 |
23 |
- |
- |
- |
|
Income |
2 |
8,997 |
- |
8,997 |
7,957 |
- |
7,957 |
|
Investment management fee |
3 |
(434) |
(1,012) |
(1,446) |
(413) |
(963) |
(1,376) |
|
Administrative expenses |
4 |
(465) |
- |
(465) |
(383) |
- |
(383) |
|
NET RETURN BEFORE FINANCE COSTS AND TAXATION |
|
8,098 |
(5,567) |
2,531 |
7,161 |
19,307 |
26,468 |
|
|
|
|
|
|
|
|
|
|
Finance costs |
5 |
(116) |
(270) |
(386) |
(117) |
(274) |
(391) |
|
RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION |
|
7,982 |
(5,837) |
2,145 |
7,044 |
19,033 |
26,077 |
|
|
|
|
|
|
|
|
|
|
Taxation |
6 |
(26) |
- |
(26) |
- |
- |
- |
|
RETURN ON ORDINARY ACTIVITIES AFTER TAXATION |
|
7,956 |
(5,837) |
2,119 |
7,044 |
19,033 |
26,077 |
|
|
|
|
|
|
|
|
|
|
RETURN PER ORDINARY SHARE: |
8 |
|
|
|
|
|
|
|
Basic |
|
17.92p |
(13.15p) |
4.77p |
17.18p |
46.41p |
63.59p |
|
Diluted |
|
17.48p |
n/a |
4.66p |
16.55p |
44.71p |
61.26p |
The total column of this statement represents the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.
STATEMENT OF FINANCIAL POSITION
As at 30 September
|
|
|
2016 |
2015 |
||
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|
FIXED ASSETS |
|
|
|
|
|
|
Investments at fair value through profit or loss |
9 |
|
214,024 |
|
210,877 |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Debtors |
10 |
1,259 |
|
1,166 |
|
|
Money market funds |
|
10,754 |
|
9,698 |
|
|
Cash and short term deposits |
|
287 |
|
196 |
|
|
|
|
12,300 |
|
11,060 |
|
|
|
|
|
|
|
|
|
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
|
|
|
|
|
Bank loan |
11 |
(26,000) |
|
(25,000) |
|
|
Other creditors |
11 |
(594) |
|
(1,289) |
|
|
|
|
(26,594) |
|
(26,289) |
|
|
NET CURRENT LIABILITIES |
|
|
(14,294) |
|
(15,229) |
|
NET ASSETS |
|
|
199,730 |
|
195,648 |
|
|
|
|
|
|
|
|
CAPITAL AND RESERVES |
|
|
|
|
|
|
Called-up share capital |
12 |
|
11,321 |
|
10,745 |
|
Share premium account |
|
|
40,550 |
|
32,473 |
|
Capital redemption reserve |
|
|
12,616 |
|
12,616 |
|
Capital reserve |
|
|
127,096 |
|
132,933 |
|
Revenue reserve |
|
|
8,147 |
|
6,881 |
|
EQUITY SHAREHOLDERS' FUNDS |
|
|
199,730 |
|
195,648 |
|
|
|
|
|
|
|
|
NET ASSET VALUE PER ORDINARY SHARE: |
13 |
|
|
|
|
|
Basic |
|
|
441.07p |
|
455.24p |
|
Diluted |
|
|
431.48p |
|
440.65p |
The financial statements were approved by the Board of Directors and authorised for issue on 15 November 2016 and were signed on its behalf by:
Richard Burns
Chairman
The accompanying notes are an integral part of the financial statements.
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 September 2016
|
|
|
Share capital |
Share premium account |
Capital redemption reserve |
Capital reserve |
Revenue reserve |
Total |
||||||||||
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||||||||||
|
Balance at 30 September 2015 |
|
10,745 |
32,473 |
12,616 |
132,933 |
6,881 |
195,648 |
||||||||||
|
Issue of ordinary shares on conversion of subscription shares |
12 |
325 |
3,839 |
- |
- |
- |
4,164 |
||||||||||
|
Issue of ordinary shares |
|
251 |
4,238 |
- |
- |
- |
4,489 |
||||||||||
|
Return on ordinary activities after taxation |
|
- |
- |
- |
(5,837) |
7,956 |
2,119 |
||||||||||
|
Dividends paid |
7 |
- |
- |
- |
- |
(6,690) |
(6,690) |
||||||||||
|
BALANCE AT 30 SEPTEMBER 2016 |
|
11,321 |
40,550 |
12,616 |
127,096 |
8,147 |
199,730 |
||||||||||
|
|
|
|
|
|
|
|
|
||||||||||
|
For the year ended 30 September 2015 |
|||||||||||||||||
|
|
|
|
Share |
Capital |
|
|
|
|
|||||||||
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|||||||||
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|||||||||
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|||||||||
|
Balance at 30 September 2014 |
|
10,127 |
24,084 |
12,615 |
113,900 |
5,746 |
166,472 |
|
|||||||||
|
Issue of ordinary shares on conversion of subscription shares |
12 |
405 |
4,781 |
1 |
- |
- |
5,187 |
|
|||||||||
|
Issue of ordinary shares |
|
213 |
3,608 |
- |
- |
- |
3,821 |
|
|||||||||
|
Return on ordinary activities after taxation |
|
- |
- |
- |
19,033 |
7,044 |
26,077 |
|
|||||||||
|
Dividends paid |
7 |
- |
- |
- |
- |
(5,909) |
(5,909) |
|
|||||||||
|
BALANCE AT 30 SEPTEMBER 2015 |
|
10,745 |
32,473 |
12,616 |
132,933 |
6,881 |
195,648 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
The capital reserve at 30 September 2016 is split between realised £89,793K and unrealised £37,303K (30 September 2015 is split realised £89,272K and unrealised £43,661K).
The revenue reserve and the realised capital reserve represent the amount of the Company's reserves distributable by way of dividend.
The accompanying notes are an integral part of the financial statements.
STATEMENT OF CASHFLOWS
For the year ended 30 September
|
|
|
Year ended |
Year ended |
|
|
|
30 September 2016 |
30 September 2015 |
|
|
Notes |
£'000 |
£'000 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Net return on ordinary activities before finance costs and taxation |
|
2,531 |
26,468 |
|
Adjustment for: |
|
|
|
|
Losses/(gains) on investments at fair value |
|
4,578 |
(20,270) |
|
Net currency gains |
|
(23) |
- |
|
Dividend income |
|
(8,951) |
(7,922) |
|
Dividends received |
|
8,791 |
8,026 |
|
Interest income |
|
(42) |
(19) |
|
Interest received |
|
43 |
16 |
|
Decrease/(increase) in other debtors |
|
1 |
(1) |
|
(Decrease)/increase in other creditors |
|
(323) |
114 |
|
Net cash outflow from servicing of finance |
|
(371) |
(394) |
|
Net tax paid |
|
(110) |
(30) |
|
NET CASH INFLOW FROM OPERATING ACTIVITIES |
|
6,124 |
5,988 |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Purchases of investments |
|
(64,809) |
(82,726) |
|
Sales of investments |
|
56,846 |
80,521 |
|
NET CASHFLOW FROM INVESTING ACTIVITIES |
|
(7,963) |
(2,205) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Issue of ordinary shares from conversion of subscription shares |
|
4,164 |
5,186 |
|
Issue of ordinary shares |
|
4,489 |
3,821 |
|
Equity dividends paid |
7 |
(6,690) |
(5,909) |
|
Drawdown of loan |
|
1,000 |
2,000 |
|
NET CASH INFLOW FROM FINANCING ACTIVITIES |
|
2,963 |
5,098 |
|
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
1,124 |
8,881 |
|
|
|
|
|
|
ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS |
|
|
|
|
Opening balance |
|
9,894 |
1,013 |
|
Increase in cash and cash equivalents |
|
1,124 |
8,881 |
|
Currency movements |
|
23 |
- |
|
CLOSING BALANCE |
|
11,041 |
9,894 |
|
|
|
|
|
|
COMPONENTS OF CASH AND CASH EQUIVALENTS |
|
|
|
|
AAA money market funds |
|
10,754 |
9,698 |
|
Cash and short term deposits |
|
287 |
196 |
|
|
|
11,041 |
9,894 |
The accompanying notes are an integral part of the financial statements.
|
Notes to the Financial Statements |
|||
|
For the year ended 30 September 2016 |
|||
|
|
|
|
|
|
1. |
Accounting policies |
||
|
|
(a) |
Basis of accounting |
|
|
|
|
The financial statements have been prepared in accordance with Financial Reporting Standard 102 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, as outlined in Section 5.
These financial statements are the first since FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland) came into effect for accounting periods beginning on or after 1 January 2015. An assessment of the impact of adopting FRS 102 has been carried out and found that no restatement of balances as at the transition date, 1 October 2014, or comparative figures in the Statement of Financial Position or the Statement of Comprehensive Income is considered necessary.
All values are rounded to the nearest thousand pounds (£000) except where indicated otherwise.
|
|
|
|
(b) |
Valuation of investments |
|
|
|
|
The Company's business is investing in financial assets with a view to profiting from their total return in the form of income and capital growth. This portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance with a documented investment strategy, and information about the portfolio is provided internally on that basis to the Company's Board of Directors. Accordingly, the Company classifies the investments 'at fair value through profit or loss'. They are included initially at fair value, which is taken to be their cost (excluding expenses incidental to the acquisition which are written off in the Statement of Comprehensive Income, and allocated to 'capital' at the time of acquisition). Subsequent to initial recognition, investments are valued at fair value through profit or loss. For listed investments, this is deemed to be bid market prices or closing prices for SETS stocks sourced from the London Stock Exchange. SETS is the London Stock Exchange electronic trading service covering most of the market including all FTSE 100 constituents and most liquid FTSE 250 along with some other securities.
Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Statement of Comprehensive Income and are ultimately recognised in the capital reserve.
|
|
|
|
(c) |
Money market funds |
|
|
|
|
The money market funds are used by the Company to provide additional short term liquidity. As they are not listed on a recognised exchange and due to their short-term nature, they are recognised in the financial statements as a current asset and are included at fair value through profit or loss.
The money market fund in which the Company invests is managed by Standard Life Investments Limited. The share class of the money market fund in which the Company invests does not charge a management fee.
|
|
|
|
(d) |
Income |
|
|
|
|
Income from equity investments (other than special dividends), including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex- dividend. Special dividends are credited to revenue or capital according to the circumstances. Foreign income is converted at the exchange rate applicable at the time of receipt. Interest receivable on short term deposits is accounted for on an accruals basis.
|
|
|
|
(e) |
Expenses and interest payable |
|
|
|
|
Expenses are accounted for on an accruals basis. Expenses are charged to capital when they are incurred in connection with the maintenance or enhancement of the value of investments. In this respect, the investment management fee and relevant finance costs are allocated between revenue and capital in line with the Board's expectation of returns from the Company's investments over the long term in the form of revenue and capital respectively (see notes 3 and 5).
Transaction costs incurred on the purchase and disposal of investments are recognised as a capital item in the Statement of Comprehensive Income.
|
|
|
|
(f) |
Dividends payable |
|
|
|
|
In accordance with FRS102, dividends that are declared and approved by the Company after the Statement of Financial Position date are not recognised as a liability of the Company at the Statement of Financial Position date.
|
|
|
|
(g) |
Capital and reserves |
|
|
|
|
Called-up share capital Share capital represents the nominal value of ordinary shares issued.
Share premium account The share premium account represents the premium above nominal value received by the Company on issuing shares net of issue costs.
Capital redemption reserve The capital redemption reserve represents the nominal value of ordinary shares repurchased and cancelled.
Capital reserve Gains or losses on realisation of investments and changes in fair values of investments are included within the capital reserve. The capital element of the management fee along with any associated irrecoverable VAT and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve.
Revenue reserve The revenue reserve represents accumulated revenue profits retained by the Company that have not been distributed to shareholders as a dividend.
|
|
|
|
(h) |
Taxation |
|
|
|
|
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Statement of Financial Position date measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the accounts.
Owing to the Company's status as an investment trust company, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
|
|
|
2. |
Income |
2016 |
2015 |
|
|
|
£'000 |
£'000 |
|
|
Income from investments |
|
|
|
|
Franked investment income |
|
|
|
|
Ordinary dividends |
6,941 |
6,444 |
|
|
Special dividends |
600 |
420 |
|
|
|
7,541 |
6,864 |
|
|
|
|
|
|
|
Overseas and unfranked investment income |
|
|
|
|
Ordinary dividends |
1,024 |
765 |
|
|
Special dividends |
386 |
293 |
|
|
|
1,410 |
1,058 |
|
|
|
8,951 |
7,922 |
|
|
Other income |
|
|
|
|
Money market interest |
42 |
19 |
|
|
Underwriting commission |
4 |
16 |
|
|
|
46 |
35 |
|
|
Total income |
8,997 |
7,957 |
|
|
|
|
|
|
|
|
2016 |
2015 |
|
3. |
Investment management fee |
£'000 |
£'000 |
|
|
Charged to revenue reserve |
434 |
413 |
|
|
Charged to capital reserve |
1,012 |
963 |
|
|
|
1,446 |
1,376 |
The Company has an agreement with Standard Life (Corporate Funds) Limited for the provision of management services. The contract is terminable by either party on not less than six months' notice.
The fee is based on 0.65% of total assets, payable quarterly in arrears and is chargeable 30% to revenue and 70% to capital (see note 1(e)).
|
|
|
|
2016 |
2015 |
|
4. |
Administrative expenses |
£'000 |
£'000 |
|
|
|
Directors' fees |
111 |
115 |
|
|
|
Employers' National Insurance |
10 |
10 |
|
|
|
Fees payable to the Company's Auditor (excluding VAT): |
|
|
|
|
|
- for the audit of the annual financial statements |
23 |
22 |
|
|
|
Professional fees |
47 |
16 |
|
|
|
Depositary fees |
43 |
43 |
|
|
|
Other expenses |
231 |
177 |
|
|
|
|
|
465 |
383 |
With the exception of fees payable to the Company's auditor, irrecoverable VAT has been included under the relevant expense line above. Irrecoverable VAT on fees payable to the Company's auditor is included within other expenses.
|
5 |
Finance Costs |
|
|
|
|
|
2016 £'000 |
2015 £'000 |
|
|
On bank loans and overdrafts: |
|
|
|
|
Charged to revenue reserve |
116 |
117 |
|
|
Charged to capital reserve |
270 |
274 |
|
|
|
386 |
391 |
Finance costs are chargeable 30% to revenue and 70% to capital (see note 1(e)).
|
6. |
Taxation |
|
2016 |
2015 |
|
||||||
|
|
|
|
£'000 |
£'000 |
|
||||||
|
|
(a) |
Analysis of charge for the year |
|
|
|
||||||
|
|
|
Overseas withholding tax |
26 |
- |
|
||||||
|
|
|
|
|
|
|
||||||
|
|
(b) |
Factors affecting current tax charge for the year |
|
|
|
||||||
|
|
|
The corporation tax rate was 20% from 1 April 2015 giving an effective rate of 20%. The tax assessed for the year is lower than that resulting from applying the standard rate of corporation tax in the UK. |
|
||||||||
|
|
|
A reconciliation of the Company's current tax charge is set out below: |
|
||||||||
|
|
|
|
|
|
|
||||||
|
|
|
Total return on ordinary activities before taxation |
2,145 |
26,077 |
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
Return on ordinary activities at the UK standard rate of corporation tax 20% (2015 - 20.5%) |
429 |
5,346 |
|
||||||
|
|
|
Effects of: |
|
|
|
||||||
|
|
|
Losses/(gains) on investments not taxable |
911 |
(4,155) |
|
||||||
|
|
|
Non-taxable income |
(1,729) |
(1,578) |
|
||||||
|
|
|
Excess management expenses and loan relationship debit expenses |
389 |
387 |
|
||||||
|
|
|
Overseas withholding tax |
26 |
- |
|
||||||
|
|
|
Total taxation |
26 |
- |
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
At 30 September 2016, the Company had unutilised management expenses and loan relationship losses of £21,176,000 (2015 - £19,336,000). No deferred tax asset has been recognised on the unutilised management expenses and loan relationship losses as it is unlikely there will be suitable taxable profits from which the future reversal of the deferred tax asset could be deducted. |
|
||||||||
|
7. |
Dividends on Ordinary shares |
2016 |
2015 |
||||||||
|
|
|
£'000 |
£'000 |
||||||||
|
|
Amounts recognised as distributions to equity holders in the year: |
|
|
||||||||
|
|
Final dividend for 2015 of 4.70p per share (2014 - 4.40p) |
2,020 |
1,782 |
||||||||
|
|
First quarterly dividend for 2016 of 3.40p per share (2015 - 3.20p) |
1,520 |
1,301 |
||||||||
|
|
Second quarterly dividend for 2016 of 3.40p per share (2015 -3.40p) |
1,520 |
1,383 |
||||||||
|
|
Third quarterly dividend for 2016 of 3.60p per share (2015 - 3.40p) |
1,630 |
1,443 |
||||||||
|
|
|
6,690 |
5,909 |
||||||||
|
|
|
|
|
||||||||
|
|
Revenue available for distribution |
7,656 |
7,044 |
||||||||
|
|
|
|
|
||||||||
|
|
The proposed final dividend for 2016 is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
|
||||||||||
|
|
We set out below the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of Sections 1158-1159 of the Corporation Tax Act 2010 are considered.
|
||||||||||
|
|
|
2016 |
2015 |
||||||||
|
|
|
£'000 |
£'000 |
||||||||
|
|
First quarterly dividend for 2016 of 3.40p per share (2015 - 3.20p) |
1,520 |
1,301 |
||||||||
|
|
Second quarterly dividend for 2016 of 3.40p per share (2015 -3.40p) |
1,520 |
1,383 |
||||||||
|
|
Third quarterly dividend for 2016 of 3.60p per share (2015 - 3.40p) |
1,630 |
1,443 |
||||||||
|
|
Proposed final dividend for 2016 of 5.00p per share (2015 - 4.70p) |
2,264 |
2,020 |
||||||||
|
|
|
6,934 |
6,147 |
||||||||
|
8. |
Return per Ordinary share |
|
|
||
|
|
Basic |
2016 |
2015 |
||
|
|
|
£'000 |
p |
£'000 |
p |
|
|
Revenue return |
7,956 |
17.92 |
7,044 |
17.18 |
|
|
Capital return |
(5,837) |
(13.15) |
19,033 |
46.41 |
|
|
Total return |
2,119 |
4.77 |
26,077 |
63.59 |
|
|
|
|
|
|
|
|
|
Weighted average number of Ordinary shares in issue1 |
|
44,390,125 |
|
41,010,971 |
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
Revenue return |
7,956 |
17.48 |
7,044 |
16.55 |
|
|
Capital return |
(5,837) |
n/a |
19,033 |
44.71 |
|
|
Total return |
2,119 |
4.66 |
26,077 |
61.26 |
|
|
|
|
|
|
|
|
|
Number of dilutive shares |
|
1,119,925 |
|
1,556,223 |
|
|
Diluted shares in issue |
|
45,510,050 |
|
42,567,194 |
|
|
|
|
|
|
|
|
|
The calculation of the diluted total, revenue and capital returns per Ordinary share are carried out in accordance with FRS 102, "Earnings per Share". For the purposes of calculating diluted total, revenue and capital returns per Ordinary share, the number of Ordinary shares is the weighted average used in the basic calculation plus the number of Ordinary shares deemed to be issued for no consideration on exercise of all Subscription shares by reference to the average share price of the Ordinary shares during the period.
For the year ended 30 September 2016 the assumed conversion for Ordinary shares was non-dilutive to the capital return per Ordinary share.
1 Calculated excluding shares held in Treasury where applicable.
|
||||
|
9. |
Investments |
2016 |
2015 |
|||
|
|
|
£'000 |
£'000 |
|||
|
|
Fair value through profit or loss |
|
|
|||
|
|
Opening book cost |
167,215 |
154,930 |
|||
|
|
Opening fair value gains on investments held |
43,662 |
33,347 |
|||
|
|
Opening fair value |
210,877 |
188,277 |
|||
|
|
Movements in the year: |
|
|
|||
|
|
Purchases at cost |
64,422 |
82,983 |
|||
|
|
Sales |
- proceeds |
(56,697) |
(80,653) |
||
|
|
|
- realised gains on sales |
1,780 |
9,955 |
||
|
|
Current year fair value (losses)/gains on investments held |
(6,358) |
10,315 |
|||
|
|
Closing fair value |
214,024 |
210,877 |
|||
|
|
|
|
|
|
||
|
|
Closing book cost |
176,720 |
167,215 |
|||
|
|
Closing fair value gains on investments held |
37,304 |
43,662 |
|||
|
|
Closing fair value |
214,024 |
210,877 |
|||
|
|
|
|
|
|
||
|
|
Gains on investments held at fair value through profit or loss |
|
||||
|
|
Gains on sales |
1,780 |
9,928 |
|||
|
|
Gains on special dividends |
- |
27 |
|||
|
|
(Decrease)/increase in fair value gains on investments held |
(6,358) |
10,315 |
|||
|
|
|
|
(4,578) |
20,270 |
||
|
|
|
|||||
|
|
Transaction costs During the year, expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the Statement of Comprehensive Income. The total costs were as follows:
|
|||||
|
|
|
2016 |
2015 |
|||
|
|
|
£'000 |
£'000 |
|||
|
|
Purchases |
349 |
417 |
|||
|
|
Sales |
52 |
97 |
|||
|
|
Total |
401 |
514 |
|||
|
10. |
Debtors: amounts falling due within one year |
2016 |
2015 |
|
|
|
|
£'000 |
£'000 |
|
|
|
Amounts due from brokers |
352 |
500 |
|
|
|
Net dividends and interest receivable |
709 |
549 |
|
|
|
Other debtors |
198 |
117 |
|
|
|
|
1,259 |
1,166 |
|
|
11. |
Creditors: amounts falling due within one year |
2016 |
2015 |
|
|
|
£'000 |
£'000 |
|
|
Bank loan |
26,000 |
25,000 |
|
|
|
|
|
|
|
Other creditors |
|
|
|
|
Amounts due to brokers |
- |
387 |
|
|
Investment management fee payable |
369 |
709 |
|
|
Sundry creditors |
225 |
193 |
|
|
|
594 |
1,289 |
|
|
|
|
|
|
|
As at 30 September 2016, the Company had drawn down £26 million (2015 - £25 million) of the £30 million (2015 - £30 million) loan facility arranged with Scotiabank (Ireland) Ltd, £20 million maturing on 5 October 2016, £3 million maturing on 5 October 2016, £2 million maturing on 5 October 2016 and £1 million maturing on 24 October 2016, at interest rates of 1.12344%, 1.12344%, 1.12344% and 1.11669% respectively. Subsequent to the year end, all four loans have been rolled over on a monthly basis. On 7 November 2016, the £20 million, £3 million and £2 million loans were rolled over until 7 December 2016 at a rate of 1.11125%. On 24 October 2016, the £1 million loan was rolled over to 24 November 2016 at a rate of 1.11250%.
|
||
|
12. |
Called up share capital |
2016 |
2015 |
|
|
|
|
£'000 |
£'000 |
|
|
|
Issued and fully paid: |
|
|
|
|
|
Ordinary shares of 25p each |
|
|
|
|
|
Opening balance of 42,976,691 (2015 - 40,505,994) Ordinary shares |
10,744 |
10,126 |
|
|
|
Issue of 1,301,138 (2015 - 1,620,697) Ordinary shares on conversion of Subscription shares |
326 |
405 |
|
|
|
Issue of nil (2015 - nil) Ordinary shares from Treasury |
- |
- |
|
|
|
Issue of 1,005,000 (2015 - 850,000) Ordinary shares |
251 |
213 |
|
|
|
Closing balance of 45,282,829 (2015 - 42,976,691) Ordinary shares |
11,321 |
10,744 |
|
|
|
|
|
|
|
|
|
Subscription shares of 0.01p each |
|
|
|
|
|
Opening balance of 5,197,076 (2015 - 6,817,773) Subscription shares |
1 |
1 |
|
|
|
Conversion of 1,301,138 (2015 - 1,620,697) Subscription shares into Ordinary shares |
(1) |
- |
|
|
|
Closing balance of 3,895,938 (2015 - 5,197,076) Subscription shares |
- |
1 |
|
|
|
|
11,321 |
10,745 |
|
|
|
|
|
|
|
|
|
On 17 December 2010 the Company issued 7,585,860 Subscription shares of 0.01p each by way of a bonus issue to the Ordinary shareholders on the basis of one Subscription share for every five Ordinary shares. Each Subscription share confers the right, but not the obligation, to subscribe for one Ordinary share on any subscription date, being the final business day of June and December in each year commencing June 2011 and finishing on the last business day of December in 2016, after which the rights under the Subscription shares will lapse. The conversion price has been determined as being 320p.
During the year, shareholders have exercised their right to convert 1,301,138 (2015 - 1,620,697) Subscription shares into ordinary shares for a total consideration of £4,164,000 (2015 - £5,187,000).
During the year, 1,005,000 (2015 - 850,000) Ordinary shares were issued for a total consideration of £4,489K (2015 - 3,821K).
There were no shares repurchased during the year. The total shares held in Treasury is nil (2015 - nil). The number of Subscription shares in issue at 30 September 2016 is 3,895,938 (2015 - 5,197,076).
|
|||
|
13. |
Net asset value per share |
|
|
|||||
|
|
The net asset value per share and the net assets attributable to Ordinary shares at the end of the year calculated in accordance with the Articles of Association were as follows: |
|||||||
|
|
|
|
|
|||||
|
|
Basic |
2016 |
2015 |
|||||
|
|
Total shareholders' funds (£'000) |
199,730 |
195,648 |
|||||
|
|
Number of Ordinary shares in issue at year end |
45,282,829 |
42,976,691 |
|||||
|
|
Net asset value per share |
441.07p |
455.24p |
|||||
|
|
|
|
|
|||||
|
|
Diluted |
|
|
|||||
|
|
Total shareholders' funds assuming exercise of Subscription shares (£'000) |
212,197 |
212,279 |
|||||
|
|
Number of potential Ordinary shares in issue at year end |
49,178,767 |
48,173,767 |
|||||
|
|
Net assets per share |
431.48p |
440.65p |
|||||
|
|
|
|
|
|||||
|
|
The diluted net asset value per Ordinary share has been calculated in accordance with guidelines issued by the Association of Investment Companies and assumes that all outstanding Subscription shares were converted into Ordinary shares at the year end. |
|||||||
|
14. |
Analysis of changes in net debt |
At 30 September 2015 |
Cashflow |
Currency movements |
At 30 September 2016 |
|
||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
||
|
|
Cash at bank and in hand |
196 |
68 |
23 |
287 |
|
||
|
|
Money market funds |
9,698 |
1,056 |
- |
10,754 |
|
||
|
|
Bank loan |
(25,000) |
(1,000) |
- |
(26,000) |
|
||
|
|
Net debt |
(15,106) |
124 |
23 |
(14,959) |
|
||
|
15. |
Financial instruments |
|
|
Risk management The Company's financial instruments comprise securities and other investments, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. The Company also has the ability to enter into derivative transactions for the purpose of managing currency and market risks arising from the Company's activities.
The main risks the Company faces from its financial instruments are (i) market price risk (comprising interest rate risk, currency risk and other price risk), (ii) liquidity risk and (iii) credit risk.
The Board regularly reviews and agrees policies for managing each of these risks. The Manager's policies for managing these risks are summarised below and have been applied throughout the year.
|
|
(i) |
Market risk |
|
|
The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices.
This market risk comprises three elements - interest rate risk, currency risk and other price risk.
Interest rate risk Interest rate movements may affect: - the fair value of the investments in fixed interest rate securities; - the level of income receivable on cash deposits; - interest payable on the Company's variable rate borrowings.
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.
It is the Company's policy to increase its exposure to equity market price risk through the judicious use of borrowings. When borrowed funds are invested in equities, the effect is to magnify the impact on Shareholders' funds of changes - both positive and negative - in the value of the portfolio.
Interest rate profile The interest rate risk profile of the portfolio of financial assets and liabilities at the Statement of Financial Position date was as follows:
|
|
|
|
|
|
Weighted average |
Weighted |
Fixed rate |
Floating |
||||||
|
|
As at 30 September 2016 |
|
Years |
% |
£000 |
£000 |
|||||||
|
|
Assets |
|
|
|
|
|
|||||||
|
|
Money market funds |
|
- |
0.43 |
- |
10,754 |
|||||||
|
|
Cash deposits |
|
- |
- |
- |
287 |
|||||||
|
|
Total assets |
|
- |
0.42 |
- |
11,041 |
|||||||
|
|
Liabilities |
|
|
|
|
|
|||||||
|
|
Bank loans |
|
- |
1.12 |
26,000 |
- |
|||||||
|
|
Total liabilities |
|
- |
1.12 |
26,000 |
- |
|||||||
|
|
|
|
|
|
|
|
|||||||
|
|
As at 30 September 2015 |
|
Years |
% |
£000 |
£000 |
|||||||
|
|
Assets |
|
|
|
|
|
|
||||||
|
|
Money market funds |
|
- |
0.52 |
- |
9,698 |
|||||||
|
|
Cash deposits |
|
|
- |
- |
- |
196 |
||||||
|
|
Total assets |
|
|
- |
0.51 |
- |
9,894 |
||||||
|
|
Liabilities |
|
|
|
|
|
|
||||||
|
|
Bank loans |
|
|
0.1 |
1.61 |
25,000 |
- |
||||||
|
|
Total liabilities |
|
|
0.1 |
1.61 |
25,000 |
- |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans.
The floating rate assets consist of money market funds and cash deposits on call earning interest at prevailing market rates.
All financial liabilities are measured at amortised cost.
Maturity profile The Company did not hold any assets at 30 September 2016 or 30 September 2015 that had a maturity date. As detailed in note 11, the £20m, £3m, £2m and £1m loans drawn down had maturity dates of 5 October 2016, 5 October 2016, 5 October and 24 October 2016, respectively, at the Statement of Financial Position date. (2015 : £20m on 28 October 2015; £3m on 28 October 2015; £2m on 9 October 2015).
Interest rate sensitivity The sensitivity analyses below have been determined based on the exposure to interest rates at the Statement of Financial Position date and with the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates.
If interest rates had been 100 basis points higher or lower and all other variables were held constant, the Company's: - profit for the year ended 30 September 2016 would increase / decrease by £150,000 (2015 : increase / decrease by £151,000). This is mainly attributable to the Company's exposure to interest rates on its fixed rate borrowings and floating rate cash balances.
Currency risk All of the Company's investments are in Sterling. The Company can be exposed to currency risk when it receives dividends in currencies other than Sterling. The current policy is not to hedge this risk but this policy is kept under constant review by the Board.
Other price risk Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments.
It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular sector. The allocation of assets and the stock selection process, both act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on the London Stock Exchange.
Other price risk sensitivity If market prices at the Statement of Financial Position date had been 10% higher or lower while all other variables remained constant, the return attributable to ordinary shareholders and equity for the year ended 30 September 2016 would have increased/decreased by £21,402,000 (2015 - increase/decrease of £21,088,000). This is based on the Company's equity portfolio held at each year end.
|
||||||||||||
|
(ii) |
Liquidity risk |
|
|
|
|
|
|
||||||
|
|
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of loan and overdraft facilities (note 11).
|
||||||||||||
|
(iii) |
Credit risk |
||||||||||||
|
|
This is failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.
The risk is not significant, and is managed as follows: - where the investment manager makes an investment in a bond, corporate or otherwise, the credit rating of the issuer is taken into account so as to minimise the risk to the Company of default; - investment transactions are carried out with a large number of brokers, whose credit-standing and credit rating is reviewed periodically by the investment manager, and limits are set on the amount that may be due from any one broker; - cash and money invested in AAA money market funds are held only with reputable banks.
None of the Company's financial assets are secured by collateral or other credit enhancements.
Credit risk exposure In summary, compared to the amount in the Statement of Financial Position, the maximum exposure to credit risk at 30 September was as follows: |
||||||||||||
|
|
|
|
|
2016 |
2015 |
||||||||
|
|
|
|
|
Statement of Financial Position |
Maximum exposure |
Statement of Financial Position |
Maximum exposure |
||||||
|
|
Current assets |
|
|
|
|
|
|
||||||
|
|
Debtors |
|
|
1,259 |
1,259 |
1,166 |
1,166 |
||||||
|
|
Money market funds (indirect exposure) |
10,754 |
10,754 |
9,698 |
9,698 |
||||||||
|
|
Cash and short term deposits |
|
287 |
287 |
196 |
196 |
|||||||
|
|
|
|
|
12,300 |
12,300 |
11,060 |
11,060 |
||||||
|
|
None of the Company's financial assets is past due or impaired. |
|
|
|
|
|
Fair values of financial assets and financial liabilities |
|
|
The fair value of borrowings is not materially different to the accounts value in the financial statements of £26,000,000 (note 11).
|
|
16. |
Fair Value hierarchy |
|
|
FRS 102 requires an entity to classify fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The Company has early adopted Amendments to FRS 102 - Fair value hierarchy disclosures issued by the Financial Reporting Council in March 2016. The fair value hierarchy shall have the following classifications. - Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; - Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (ie as prices) or indirectly (ie derived from prices); and - Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The quoted equities and money market funds held by the Company at 30 September 2016 and 30 September 2015 were all Level 1. |
|
|
|
|
17. |
Capital management policies and procedures |
|
|
The Company's capital management objectives are: - to ensure that the Company will be able to continue as a going concern; and - to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and debt. The Board normally seeks to limit gearing to 15% of net assets. At the year end the Company had gearing of 7.5% of net assets (2015 - 7.7%).
The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes the nature and planned level of gearing, which takes account of the Manager's views on the market and the extent to which revenue in excess of that which is required to be distributed should be retained.
The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period. Any year end positions are presented in the Statement of Financial Position.
|
|
18. |
Contingent liabilities |
|
|
As at 30 September 2016 there were no contingent liabilities (2015 - underwriting liability of £4,624K). |
|
|
|
|
19. |
Segmental Information |
|
|
The company is engaged in a single segment of business, which is to invest in equity securities. All of the Company's activities are interrelated and each activity is dependent on the others. Accordingly, all significant operating decisions are based on the Company as one segment. |
|
|
|
|
20. |
Related Party Transactions and Transactions with the Manager |
|
|
Fees payable during the year to the Directors and their interests in shares of the Company are considered to be related party transactions and are disclosed within the Directors' Remuneration Report. The balance of fees due to Directors at the year end was £nil (2015 - £nil).
Standard Life Investments (Corporate Funds) Limited received fees for its services as investment manager. Further details are provided in Note 3.
|
Additional notes
This Annual Financial Report is not the Company's statutory accounts. The statutory accounts for the year ended 30 September 2015 have been delivered to the Registrar of Companies. The statutory accounts for the years ended 30 September 2015 and 30 September 2016 received an audit report which was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006.
The statutory accounts for the financial year ended 30 September 2016 have been approved and audited but will not be filed with the Registrar of Companies until after the Company's Annual General Meeting which will be held at 11.30am on 15 December 2016 at the offices of Standard Life Investments, 30 St Mary Axe, London EC3A 8EP.
The Annual Report will be posted to shareholders in November 2016 and copies will be available from the Manager or by download from the Company's webpage hosted by the Manager (www.standardlifeinvestments.com/its).
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.
For Standard Life Equity Income Trust Plc
Maven Capital Partners UK LLP, Company Secretary
For further information please contact:
Press Office, Standard Life Investments
Hilda Stewart
0131 245 3409 / 07712 486 024
Andrea Ward
0131 245 0001 / 07740 535013
Evan Bruce-Gardyne
Head of Investment Companies, Standard Life Investments
0131 245 0571
This information is provided by RNS
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- 2 days ago Associated British Foods
- 2 days ago B&M European Value Retail S.A. (DI)
- 2 days ago B&M European Value Retail S.A. (DI)
- 2 days ago Haleon