Baillie Gifford Shin Nippon annual report

RNS Number : 7446Z

Baillie Gifford Shin Nippon PLC

17 March 2017

 

RNS Announcement: Preliminary Results

Baillie Gifford Shin Nippon PLC

Legal Entity Identifier: X5XCIPCJQCSUF8H1FU83 Results for the year to 31 January 2017

Over the year the Company's net asset value per share (after deducting borrowings at fair value) rose 34.0%, whilst the comparative index^* rose by 34.9% in sterling terms.  The share price increased by 33.5%.

In sterling terms over three years, the Company's comparative index is up 69.4%, whilst the net asset value and share price are up by 87.6% and 82.3% respectively.

¾    Among the positive contributors to performance were a number of disruptive online businesses targeting large and underdeveloped domestic markets, including food delivery business Yume No Machi and fashion retailer Start Today.

¾    Leading online real estate operator Next and online cosmetics ratings website iStyle were two of the more disappointing stocks over the year. Both companies have been investing heavily to secure future growth and the Managers remain excited about their prospects.

¾    Turnover within the portfolio remains low, at 13.4%; however the Managers made new investments in a number of exciting companies with high growth prospects, including DesignOne and EGuarantee.

¾    During the year, the Company issued 2,620,000 shares at an average premium to net asset value of 4.7%, representing 6.9% of its issued share capital at 31 January 2016.

^* The Company's comparative index for the year to 31 January 2017 was the MSCI Japan Small Cap Index (total return in sterling terms).

Source: Thomson Reuters Datastream / Baillie Gifford.

Shin Nippon aims to achieve long term capital growth through investment principally in small Japanese companies which are believed to have above average prospects for growth. At 31 January 2017 the Company had total assets of £257.5m (before deduction of bank loan of £23.6m).

The Company is managed by Baillie Gifford & Co, an Edinburgh based fund management group with around £159 billion under management and advice as at 16 March 2017.

Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. The Company has borrowed money to make further investments. This is commonly referred to as gearing. The risk is that, when this money is repaid by the Company, the value of these investments may not be enough to cover the borrowing and interest costs, and the Company makes a loss. If the Company's investments fall in value, gearing will increase the amount of this loss. The more highly geared the Company, the greater this effect will be.

Investment in investment trusts should be regarded as medium to long term. You can find up to date performance information about Shin Nippon at www.shinnippon.co.uk.

See disclaimer at the end of this announcement.

16 March 2017

For further information please contact:

Alex Blake, Baillie Gifford & Co

Tel: [phone]

Roland Cross, Director, Four Broadgate

Tel: [phone] or 07831 401309

Chairman's Statement

Your Board continues to review performance primarily over a rolling three year period.  I am delighted to report that Shin Nippon's performance continues to be strong.  Over this period Shin Nippon's net asset value per share rose by 87.6% and its share price rose by 82.3% versus the comparative index (MSCI Japan Small Cap Index, total return in Sterling terms) returns of 69.4%.  This was yet again another period of strong performance both in absolute and relative terms.

Over the year to 31 January 2017 the comparative index rose by 34.9% with the net asset value per share and share price recording a similar uplift at 34.0% and 33.5% respectively.  At 31 January 2017, the premium of the share price over the net asset value was 3.6%, marginally lower than the previous year.  This has been another good year for your Company. 

Portfolio Management Team

Last year I advised you of our new manager Praveen Kumar. I am delighted that the transition within the team has been so smooth.  Praveen has spent some considerable time in Japan during the year, visiting many of our holdings and I am confident that this approach to our selective stock picking will continue to position your Company well for the future.  The Japanese team at Baillie Gifford is particularly strong. Praveen is very ably assisted by Felicia Hjertman in the management of your portfolio and supported by the wider team.

Share Issuance

During the year the Company issued 2,620,000 shares (6.9% of the Company's Share Capital at 31 January 2016) at an average premium to net asset value of 4.7%, raising £14.6m.  Over the past three years the Board has issued 3,720,000 new shares.  In approving these share issuances your Board recognises that by increasing the size of the Company our shares are more likely to have improved liquidity and be more attractive to a wider range of shareholders.

Borrowings

The manager continues to use gearing to enhance portfolio performance.  The Board is supportive of this strategy.  The Company's gearing at the year end was equivalent to 7.7% of net assets and these borrowings were beneficial to performance.  In late 2013 the Company negotiated a ¥3.35bn loan facility with ING and this facility has remained fully drawn.  Your Board continues to review this policy and subsequent to the year end the Company arranged a further ¥2.0bn loan facility with ING to expire in November 2020 at the same time as the existing facility.

Revenue

Our revenue return per share improved considerably during the year from a loss of 0.78p per share last year to a surplus of 0.26p this year.  This was due to the increase in portfolio dividend income more than offsetting the negative effect of the increased management fee (due to the uplift in net assets under management) and the higher Yen denominated loan interest costs (due to Sterling weakness). During the year, the Board and the Managers agreed to introduce a third tier to the management fee of 0.55% on net assets in excess of £250m. As at 31 January 2017, the Company had net assets of approximately £234m. It is pleasing to note that for the first time the Company's Ongoing Charges Ratio has fallen below 1% to 0.96%.

AGM

At this year's AGM we are again seeking authority to issue new shares of up to 10% of the Company's share capital.  Any shares issued would be for cash, on a non pre-emptive basis and only at a premium to net asset value thus enhancing the net asset value for existing shareholders.  Your Board believes that by satisfying natural supply and demand for our shares, we are acting in the best interests of existing shareholders.  We will continue to monitor this closely.

As with issuing shares at a premium, the Board will again be seeking your approval to buy back shares should they start trading at a substantial discount either in absolute terms or in relation to its peers.  Similarly, if required this activity would enhance the net asset value attributable to existing shareholders.

Outlook

In our Interim Management Report we commented on the EU Referendum result in the UK, along with concerns over global growth (China in particular), rising scepticism over unconventional monetary policy by central banks and further speculation over a rise in US interest rates.  To this we now need to add the election of President Trump in the US and be mindful that all of these developments are still in their infancy. As such, uncertainty remains and caution in investment decision making is paramount.  That said, our primary focus is on Japan and there have been significant developments in that market.  Last year I highlighted the pace of economic change and the fact that company Boards were improving corporate governance.  This development is continuing and is to be welcomed.  Companies are continuing to increase dividend payouts and company share buy backs are at an all time high.  There are also a number of interesting developments in the Japanese labour market which will affect large as well as small companies in Japan.  For example, the number of foreign workers in Japan surpassed 1 million for the first time last year and the time period that highly skilled, foreign born professionals must live in Japan in order to qualify for permanent residency will be reduced from 5 years to 3 years.  These structural trends will help address the labour shortages in Japan which I highlighted in last year's report.

Your Board continues to support the stock picking nature of the Company.  Opportunities continue to present themselves and we are wholly supportive of the Managers in seeking those out and continuing to strengthen the portfolio.  The Board and the Managers remain encouraged by the outlook.

More detailed information about the Company's portfolio is contained within the Manager's Report.

M Neil Donaldson

Chairman

16 March 2017

Past performance is not a guide to future performance.

See disclaimer at the end of this announcement.

 

Managers' Report

The past twelve months were tough and volatile for high growth small cap stocks in Japan. Geopolitical and macroeconomic factors caused a rotation into value and lower quality stocks which, in the short term, hurt performance. Share prices of a number of high growth companies held in the portfolio remained weak through this period.

We strongly believe that the high growth smaller companies in which we invest have the ability to grow at high rates irrespective of macro headwinds or sluggishness in the domestic economy. This is because these companies typically target large domestic profit pools, have a disruptive business model and generally compete with traditional, slow moving incumbents. There are also structural trends playing out in Japan that we believe will act as tailwinds for these high growth companies. Inbound tourism remains strong with just over 24 million visitors last year. This was the highest number since records began in the early 60's and over the last three years, the number of foreign visitors to Japan has grown 2.4 times. Leading ¥100 store operator Seria is seeing a surge in sales as tourists buy into its fixed price offering. Labour shortage in Japan is reaching alarming levels and is affecting companies across sectors. We recently witnessed a rather remarkable situation where the employees of a leading logistics company requested management to reduce the volumes of parcels delivered due to a shortage of delivery staff. Across the economy, the jobs-to-applicants ratio remains at all-time highs. IT staffing specialist TechnoPro is a direct play on this theme and is seeing strong demand for its services. Operational execution has been excellent so far and management are likely to achieve their mid-term plan targets one year ahead of schedule.

On the policy front, there have been a number of encouraging steps taken by the government to stimulate various sectors of the economy. Recent changes to the pharmaceutical law will now enable innovative regenerative therapies to gain accelerated regulatory approval. Portfolio holding Healios was among the three companies recently chosen to participate in this process. Whilst major developed economies such as the US and the UK seem buffeted by uncertainty due to a political environment where immigration appears to be a key issue, Japan is gradually moving in the opposite direction. The government has recently instituted a new visa scheme for skilled overseas workers in certain sectors that would enable them to gain permanent residency in just a year. We are seeing companies across sectors hire overseas workers although the numbers remain small. Corporate governance continues to improve and shareholder returns via buybacks and dividends remain at encouragingly high levels. In general, we believe that the operating environment for Japanese smaller companies continues to improve and there remains significant scope for disruptive businesses to achieve high levels of growth in future.

Performance

The MSCI Japan Small Cap Index (total return in sterling terms) rose by 34.9% over the year while Shin Nippon's net asset value per share rose by 34.0% (after deducting borrowings at fair value). Sterling based investors benefitted from the currency's weakness versus the yen over the course of the past year. We think that shorter-term performance measurements are of limited relevance in assessing investment ability and believe three to five years is a more sensible period over which to judge long-term performance.

Noticeable among the positive contributors to performance over the year were a number of disruptive online businesses targeting large and underdeveloped domestic markets. Yume No Machi is emerging as the clear leader in the nascent online takeaway industry and was the top performing stock over the past year. Management are taking aggressive steps to strengthen the company's competitive position. They recently announced a capital and business alliance with Japan's leading messaging platform LINE and this should give them access to LINE's considerable user base. Start Today was another strong performer over the year. It continues to increase its dominance in online fashion apparels. Growth has recently accelerated as the company has broadened the choice of brands and products available on its online platform.

Leading online real estate operator Next and online cosmetics rating website iStyle were two of the more disappointing stocks over the year. Management of both companies have been investing heavily to secure future growth and we remain quite excited by the long-term prospects of both companies. Specialist medical device maker Asahi Intecc and niche plastic car parts maker Daikyonishikawa also performed poorly. Both companies have meaningful overseas businesses and yen strength through the year depressed sales and profits although operationally, they continue to execute well.

Portfolio

We pay less attention to the benchmark and focus more on a company's individual attractions. Consequently, Shin Nippon's active share figure continues to be high at 94%, implying just a 6% overlap with the comparative index. Annualised turnover within the portfolio was 13.4%, consistent with our long-term investment approach. However, we made new investments over the year in a number of exciting companies with high growth prospects.

DesignOne helps small businesses by building and maintaining an online presence for them. Their clients typically would have little prior experience of doing business online. The growth potential for DesignOne is significant as there are a large number of such small businesses in Japan. EGuarantee is emerging as the dominant player in the large but underdeveloped domestic trade receivables guarantee market; it is backed by the giant trading company Itochu, which is also its largest shareholder. Through Itochu's extensive business links, EGuarantee has unparalleled access to small and medium sized businesses that are still in the early stages of improving their balance sheet and working capital management. We have also been adding to our holdings in high growth companies such as Next and iStyle where the share price has been particularly weak for reasons explained earlier.

We also sold a few holdings over the past year. Oisix is an online retailer of organic foods that has struggled to scale up its business. Instead, management are venturing into new and less attractive areas. We were not convinced by management's strategy so we decided to sell our holdings. We also sold our holdings in Komehyo, a specialist retailer of second hand luxury bags, due to significant deterioration in its competitive environment. Modec is a leading global player in floating vessels used for oil and gas exploration in harsh environments; we sold our holdings in this company on concerns relating to its largest customer Petrobras, the Brazilian national oil company, that is currently the subject of multiple investigations around financial impropriety.

Outlook

We remain excited by the long-term prospects for Japanese smaller companies and continue to find a number of new and exciting high growth ideas. It is highly encouraging to see an increasing crop of young, dynamic and ambitious entrepreneurs starting new businesses. With tailwinds in the form of long-term structural trends and an increasing level of government support, we believe the operating environment for smaller companies in Japan is excellent. We see this as a very encouraging development for Shin Nippon.

Baillie Gifford & Co

16 March 2017

Past performance is not a guide to future performance.

See disclaimer at the end of this announcement.

 

Portfolio Performance Attribution for the Year to 31 January 2017*

Computed relative to the comparative index^†

	Index		Shin Nippon		Performance#		Contribution	Contribution attributable to:
	asset allocation		asset allocation		Shin		to relative	Stock	Asset
	31.01.16	31.01.17	31.01.16	31.01.17	Nippon	Index	return	selection	allocation	Gearing
Portfolio Breakdown	%	%	%	%	%	%	%	%	%	%
Consumer   Discretionary	18.7	17.6	25.6	26.9	35.5	24.6	1.5	2.1	(0.6)	-
Consumer Staples	11.6	10.6	6.5	5.8	26.8	38.6	(0.7)	(0.6)	(0.1)	-
Energy	0.7	0.7	0.5	-	-	36.1	0.1	0.1	-	-
Financials	18.7	8.3	8.2	1.7	15.9	42.0	(1.1)	(0.4)	(0.6)	-
Health Care	5.9	5.6	15.8	14.8	26.6	21.5	(0.2)	0.6	(0.9)	-
Industrials	23.3	23.8	19.4	23.6	43.0	38.2	0.7	0.7	-	-
Information   Technology	10.3	11.8	23.6	24.1	35.4	44.8	(0.6)	(1.5)	0.9	-
Materials	10.3	10.7	-	-	-	49.5	(1.1)	-	(1.1)	-
Real Estate	-	10.2	-	2.7	(18.1)	-	(0.5)	(0.2)	0.7	-
Telecommunication    Services	-	-	0.4	0.4	26.8	-	-	-	-	-
Utilities	0.5	0.7	-	-	-	10.3	0.1	-	0.1	-
Total (excluding gearing)	100.0	100.0	100.0	100.0	33.8	34.9	(0.8)	0.5	(1.3)	-
Impact of gearing					0.6		0.6			0.6
Total (including gearing)**	100.0	100.0	100.0	100.0	34.6	34.9	(0.2)	0.5	(1.3)	0.6

Past performance is not a guide to future performance.

Source: Baillie Gifford/Statpro. See disclaimer at the end of this announcement.

Contributions cannot be added together, as they are geometric; for example to calculate how a return of 34.6% against an index return of 34.9% translates into a relative return of (0.2%), divide the portfolio return of 134.6 by the index return of 134.9, subtract one and multiply by 100.

*      The performance attribution table is based on total assets.

†      The comparative index for the year to 31 January 2017 was the MSCI Japan Small Cap Index, total return and in sterling terms.

#      The returns are total returns (net income reinvested), calculated on a monthly linked method.

**    The total return performance of 34.6% excludes expenses and therefore differs from the NAV return (after deducting borrowings at par value) of 33.9% as a result.

 

Income statement

The following is the unaudited preliminary statement for the year to 31 January 2017 which was approved by the Board on 16 March 2017. No dividend is payable.

	For the year ended 31 January 2017 (unaudited)			For the year ended 31 January 2016 (audited)
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gains on investments*	-	58,830	58,830	-	32,548	32,548
Currency (losses)/gains (note 2) †	-	(3,072)	(3,072)	-	21	21
Income	2,912	-	2,912	1,798	-	1,798
Investment management fee (note 3)	(1,590)	-	(1,590)	(1,123)	-	(1,123)
Other administrative expenses	(386)	-	(386)	(362)	-	(362)
Net return before finance costs and taxation	936	55,758	56,694	313	32,569	32,882
Finance costs of borrowings (note 4)	(544)	-	(544)	(423)	-	(423)
Net return on ordinary activities before taxation	392	55,758	56,150	(110)	32,569	32,459
Tax on ordinary activities	(291)	-	(291)	(180)	-	(180)
Net return on ordinary activities after taxation	101	55,758	55,859	(290)	32,569	32,279
Net return per ordinary share (note 6)	0.26p	142.88p	143.14p	(0.78p)	87.14p	86.36p

*      Gains on investments include gains and losses on disposals and holding gains and losses on the investment portfolio resulting from: i) changes in the local currency fair value of the investments and, ii) movements in the yen/sterling exchange rate.

†      Currency gains include: i) currency exchange gains and losses on yen bank loans, ii) exchange differences on the settlement of investment transactions and, iii) other exchange differences arising from the retranslation of cash balances.

The total column of this statement is the profit and loss account of the Company. The supplementary revenue and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

A statement of Comprehensive Income is not required as all gains and losses of the Company have been reflected in the above statement.

All revenue and capital items in this statement derive from continuing operations.

 

Balance sheet

	At 31 January 2017 (unaudited)		At 31 January 2016 (audited)
	£'000	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss		251,680		177,731
Current assets
Debtors	801		595
Cash and cash equivalents	5,520		5,106
	6,321		5,701
Creditors
Amounts falling due within one year	(553)		(615)
Net current assets		5,768		5,086
Total assets less current liabilities		257,448		182,817
Creditors
Amounts falling due after more than one year (note 7)		(23,576)		(19,427)
Net assets		233,872		163,390
Capital and reserves
Called up share capital		4,040		3,778
Share premium account		40,094		25,733
Capital redemption reserve		21,521		21,521
Capital reserve		173,473		117,715
Revenue reserve		(5,256)		(5,357)
Shareholders' funds		233,872		163,390
Net asset value per ordinary share (after deducting borrowings at book value)		579.0p		432.5p
Net asset value per ordinary share (after deducting borrowings at fair value)		577.4p		431.0p
Net asset value per ordinary share (after deducting borrowings at par value)		578.8p		432.3p

 

Statement of changes in equity

For the year ended 31 January 2017 (unaudited)

	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Capital reserve £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 February 2016	3,778	25,733	21,521	117,715	(5,357)	163,390
Ordinary shares issued (note 8)	262	14,361	-	-	-	14,623
Net return on ordinary activities after taxation	-	-	-	55,758	101	55,859
Shareholders' funds at 31 January 2017	4,040	40,094	21,521	173,473	(5,256)	233,872

For the year ended 31 January 2016 (audited)

	Called up Share capital £'000	Share premium account £'000	Capital  redemption reserve £'000	Capital reserve £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 February 2015	3,718	23,317	21,521	85,146	(5,067)	128,635
Ordinary shares issued (note 8)	60	2,416	-	-	-	2,476
Net return on ordinary activities after taxation	-	-	-	32,569	(290)	32,279
Shareholders' funds at 31 January 2016	3,778	25,733	21,521	117,715	(5,357)	163,390

 

Cash flow statement

	For the year ended 31 January 2017 (unaudited)		For the year ended 31 January 2016  (audited)
	£'000	£'000	£'000	£'000
Cash flows from operating activities
Net return on ordinary activities before taxation	56,150		32,459
Net gains on investments	(58,830)		(32,548)
Currency losses/(gains)	3,072		(21)
Finance costs of borrowings	544		423
Overseas withholding tax	(252)		(160)
Increase in accrued income and prepaid expenses	(379)		(193)
Increase in creditors and prepaid income	102		31
Cash inflow/(outflow) from operations		407		(9)
Interest paid		(509)		(416)
Net cash outflow from operating activities		(102)		(425)
Cash flows from investing activities
Acquisitions of investments	(43,987)		(29,859)
Disposals of investments	28,822		24,197
Net cash outflow from investing activities		(15,165)		(5,662)
Shares issued	14,623		2,476
Net cash inflow from financing activities		14,623		2,476
Decrease in cash and cash equivalents		(644)		(3,611)
Exchange movements		1,058		536
Cash and cash equivalents at start of year		5,106		8,181
Cash and cash equivalents at end of year*		5,520		5,106

* Cash and cash equivalents represent cash at bank and short term money market deposits repayable on demand.

 

Twenty largest equity holdings at 31 January 2017 (unaudited)

Name	Business	2017 Value £'000	2017 % of total assets	2016 Value £'000
MonotaRO	Online business supplies	7,618	3.0	6,002
Start Today	Internet fashion retailer	6,982	2.7	4,230
Yume No Machi	Online meal delivery service	6,834	2.7	2,984
iStyle	Cosmetics website	6,517	2.5	5,717
Nihon M&A Center	M&A advisory services	6,304	2.4	5,804
Asahi Intecc	Specialist medical equipment	6,031	2.3	6,458
Harmonic Drive	Robotic components	5,893	2.3	3,442
M3	Online medical services	5,729	2.2	4,535
Next	Provides online property information	5,670	2.2	6,221
Daikyonishikawa	Automobile part manufacturer	5,467	2.1	3,335
Pigeon	Baby care products	5,244	2.0	3,592
GMO Payment Gateway	Online payment processing	5,095	2.0	5,986
Infomart Corp	Internet platform for restaurant supplies	5,057	2.0	3,770
Toshiba Plant Systems and Services	Plant engineering company	4,835	1.9	2,139
Nifco	Industrial fastener manufacturer	4,773	1.9	4,170
Takara Leben	Residential property developer	4,754	1.8	3,083
Seria	Discount retailer	4,565	1.8	-
Megachips	Electronic components	4,437	1.7	884
Technopro Holdings	IT staffing	4,254	1.7	-
Iriso Electronics	Specialist auto connectors	4,253	1.7	3,180
		110,312	42.9

 

Notes to the condensed financial statements (unaudited)

1.		The Financial Statements for the year to 31 January 2017 have been prepared in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' on the basis of the accounting policies set out in the Annual Report and Financial Statements which are unchanged from the prior year and have been applied consistently. The Company has early adopted the amendments to section 34 of FRS 102 regarding fair value hierarchy disclosures.
2.		Currency (losses)/gains	31 January 2017 £'000			31 January 2016 £'000
		Exchange differences on bank loans	(4,131)			(515)
		Other exchange differences	1,059			536
			(3,072)			21
3.		Investment management fee - all charged to revenue	31 January 2017 £'000			31 January 2016 £'000
		Investment management fee	1,590			1,123
		The annual management fee is 0.95% on the first £50m of net assets, 0.65% on the next £200m of net assets and 0.55% on the remaining net assets, calculated quarterly. Prior to 1 September 2016 the fee was 0.95% on the first £50m of net assets and 0.65% on the remaining net assets.
4.		The Company paid interest on bank loans of £537,000 (2016 - £423,000) and £7,000 (2016 - £nil) in respect of Yen deposits held by the Custodian Bank.
5.		No dividend will be declared.
6.	Net return per ordinary share		31 January 2017 £'000	31 January 2016 £'000
	Revenue return		101	(290)
	Capital return		55,758	32,569
	Total return		55,859	32,279
	The returns per ordinary share set out below are based on the above returns and on 39,024,022 ordinary shares (2016 - 37,377,963), being the weighted average number of ordinary shares in issue during the year. There are no dilutive or potentially dilutive shares in issue.
	Revenue return		0.26p		(0.78p)
	Capital return		142.88p		87.14p
	Total return		143.14p		86.36p

 

Notes to the condensed financial statements (unaudited) (ctd)

7.	The Company has a 7 year fixed rate loan with ING Bank N.V. for ¥3,350 million - drawn down as follows: At 31 January 2017 ING Bank N.V. - 7 year ¥3,350 million loan at 2.217% maturing 27 November 2020. At 31 January 2016 ING Bank N.V. - 7 year ¥3,350 million loan at 2.217% maturing 27 November 2020.
8.	At 31 January 2017 the Company had authority to buy back 5,726,254 shares. No shares were bought back during the year (2016 - nil). Share buy-backs are funded from the capital reserve. During the year the Company issued 2,620,000 shares on a non pre-emptive basis at a premium to net asset value for net proceeds of £14,623,000 (2016 - 600,000 shares for net proceeds of £2,476,000).
9.	The Annual Report and Financial Statements will be available on the Company's website www.shinnippon.co.uk† on or around 12 April 2017.
10.	The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 January 2017. The financial information for 2017 is derived from the statutory accounts for 2016, which have been delivered to the Registrar of Companies. The Auditor has reported on the 2016 accounts, their report was unqualified and did not contain a statement under section 495 to 497 of the Companies Act 2006. The statutory accounts for 2017 will be finalised on the basis of the financial information presented in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting which will be held on 18 May 2017. None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

†      Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

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MSCI Index data

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