Half Yearly Report

RNS Number : 2022N
F&C Managed Portfolio Trust PLC
27 January 2016
 

Date:  27 January 2016

From: F&C Managed Portfolio Trust plc

 

 

Interim Results

 

The Board of F&C Managed Portfolio Trust plc announces the unaudited interim results of the Company for the six month period to 30 November 2015.

 

Chairman's Statement

 

Highlights

 

·      Net asset value total return of -5.1% for the Income shares and -2.4% for the Growth shares compared to the FTSE All-Share Index of -6.4%

·      £17.3 million raised from the issuance of new shares

·      Net assets exceed £100 million for the first time

·      First two interim dividends increased to 1.2 pence per Income share

·      Income share dividend yield of 4.3% at 30 November 2015

 

Investment performance

 

For the six months to 30 November 2015, the net asset value (NAV) total return was -5.1% for the Income shares and -2.4% for the Growth shares. The total return for the benchmark index for both Portfolios, the FTSE All-Share Index, was -6.4% while the FTSE Equity Investment Instruments Index, returned -3.5%.

 

This was a difficult period for global equity markets. As an illustration, for the first four months of the Interim period, the FTSE All-Share Index declined by over 11% (in total return terms). Acute anxiety amongst investors over the prospects for growth globally, and the Chinese economy in particular, was the cause of the sell off.

 

The other notable feature has been further weakness in the oil price which started the period at $68 and had fallen to $30 at the time of writing. Major commodities like copper and iron ore have also experienced prolonged price weakness with supply in excess of demand. This has been reflected in shares in companies within the energy and commodity sectors which have continued to underperform.

 

Against this background it is encouraging that both portfolios outperformed the FTSE All-Share Index, maintaining their record of strong performance. However we are acutely aware that investors "cannot eat relative performance". The key drivers of the performance of the Growth Portfolio were holdings exposed to UK mid and smaller companies and also holdings that specialise in the technology sector. In the case of the former, a benign background of decent levels of growth in the domestic economy and relatively attractive ratings of smaller companies were behind strong returns from; River and Mercantile UK Micro Cap which gained 14%, Diverse Income Trust which gained 10% and Miton UK MicroCap Trust which was ahead by 7%. In the technology sector, very strong results from large US technology companies helped Polar Capital Technology Trust to a 5% rise and the Allianz Technology Trust to a 1% gain.

 

In the Income Portfolio, where it is harder to gain the same exposure to the mid and small cap trusts due to their low yield, there are still some holdings which were beneficiaries. Standard Life UK Smaller Companies Trust Convertible gained 11% whilst Mercantile Investment Trust, the UK mid cap specialist was ahead by 4%. Other notable performers were the Edinburgh Investment Trust which rose 3% due to strong stock selection and 3i Infrastructure which also gained 3% following the payment of a special dividend.

 

The underperformers in both portfolios were focussed on the Asia Pacific and Emerging Markets sectors where the concerns over growth prospects were most acute. Murray International, which is a holding in both portfolios fell 19% whilst in the Growth Portfolio, Genesis Emerging Markets lost 14% and Blackrock Frontiers Trust was down 10%. Similarly in the Income Portfolio JPMorgan Global Emerging Markets Income Trust declined 23%, Aberdeen Asian Income Fund fell 20% and Henderson Far East Income was 17% lower. One encouraging note was that all of these trusts have maintained their dividends.

 

Growing the Company

 

In September the Board announced that the Company had been selected as the rollover option for the winding up of The Cayenne Trust.  Like F&C Managed Portfolio Trust; The Cayenne Trust invested in investment trusts and other closed ended funds and the rollover option allowed those shareholders who wished to remain invested in a similar investment company to elect to receive Income shares and/or Growth shares in our Company.  On 30 October 2015, we published a new Prospectus in order to extend the life of the existing one and to facilitate anticipated demand from The Cayenne Trust.

 

We were pleased to announce that we acquired approximately £12.9m of cash from The Cayenne Trust which was received on 2 December 2015.  Around £7.0m related to elections for Income shares and £5.9m for Growth shares.  Under the terms of the rollover these shares were issued at a premium to NAV of approximately 0.85%. I would like to welcome these new shareholders and thank them for their support.

 

Revenue and dividends

 

The Company's net revenue return for the six month period was £1,007,000 which is equivalent to 2.83p per Income share (compared to 2.68p per Income share for the corresponding period in 2014). Income shares are entitled to all the dividends paid by the Company.

 

In line with our objective of increasing dividends the Company has declared a first and second interim dividend in respect of the year to 31 May 2016, each of 1.2p per Income share (1.15p per share in the prior periods). The second interim dividend was paid to Income shareholders on 4 January 2016, after the period end.

 

The Board intends to pay three interim dividends, each of 1.2p per Income share in the current financial year. The amount of the fourth interim dividend will be determined when a clearer view of income for the year emerges. The annual rate of 5.0p per Income share paid in the prior year represents a yield on the Income share price at 30 November 2015 of 4.3%.

 

Borrowing

 

After the period end, the Company renewed its 1 year £5 million unsecured revolving credit facility with The Royal Bank of Scotland plc. Borrowings are not normally expected to exceed 20% of the total assets of the relevant Portfolio and at 30 November 2015 total £1.5 million in the Income Portfolio and £1.4 million in the Growth Portfolio. However, having now received the cash from The Cayenne Trust we are in a net cash position of approximately 4% in the Income Portfolio and 5.5% in the Growth Portfolio.

 

Discount to NAV and share buy-backs

 

In normal circumstances we aim to maintain our discount at not more than 5%, by buying back shares from time to time if necessary. In practice we have maintained both shares at a small premium in recent years. During the six months to 30 November 2015 the average premium was 1.7% for the Income shares and 1.3% for the Growth shares. At 30 November 2015, the Income shares stood at a premium of 1.0% to NAV and the Growth shares at a premium of 0.5%.

 In addition to the issuance of shares to Cayenne Trust shareholders, demand for the Company's shares during the period meant that we were able to issue 1,825,000 new Income shares and 1,550,000 new Growth shares from our block listing authority. These shares were sold at average premiums to NAV of 1.4% and 1.5% respectively.

 

Outlook

 

The long heralded increase in US interest rates took place in mid-December. The trajectory of the interest rate cycle will not be steep and the eventual peak, in all likelihood, modest. The important point is the change of direction. The Federal Reserve wishes to gradually tighten monetary policy. The UK is some way behind and may not begin the same process until later this calendar year or even into 2017. Whilst the European Central Bank and the Bank of Japan are still in the midst of quantitative easing there is a sense that accommodative monetary policy may not offer quite the same level of support to global equity markets that it has over the last few years. That is not to say that equity markets will move into a "bear phase" rather that the driver of positive returns from equity markets may have to be different. The key from here will be earnings and dividend growth and if individual companies or sectors can achieve this then even though valuations are elevated that should not be a barrier to positive returns.

 

Though there is potential downside risk to markets should concerns over global growth re-emerge, on balance, equities still offer the best prospects of positive returns. Against this background the proceeds from the Cayenne Trust corporate action will be invested steadily and mainly into existing holdings.

 

 

 

Richard M Martin

Chairman

27 January 2016

 

 

 

 

 



 

Unaudited Condensed Income Statement

Six months to 30 November 2015

 


Notes

Revenue

Capital

Total



£'000

£'000

£'000






Losses on investments

Foreign exchange gains


-

            -

(4,144)

            3

(4,144)

3

Income

2

1,298

-

1,298

Investment management and performance fee

3

(85)

(232)

(317)

Other expenses


(192)

-

(192)

Return on ordinary activities before finance           costs and tax


 

1,021

 

(4,373)

 

(3,352)

Finance costs


(6)

(12)

(18)

Return on ordinary activities before tax


1,015

(4,385)

(3,370)

Tax on ordinary activities


(8)

-

(8)

Return attributable to shareholders


1,007

(4,385)

(3,378)

Return per Income share (pence)

5

2.83p

(9.31)p

(6.48)p

Return per Growth share (pence)

5

-

(3.60)p

(3.60)p

 

The total column of this statement is the Profit and Loss Account of the Company.

 

The supplementary revenue and capital columns are prepared under the guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing operations.

 

Unaudited Condensed Income Statement

Six months to 30 November 2014

 


Notes

Revenue

Capital

Total



£'000

£'000

£'000






Gains on investments

Foreign exchange losses


-

            -

1,887

            (2)

1,887

(2)

Income

2

993

-

993

Investment management and performance fee

3

(67)

(158)

(225)

Other expenses


(173)

-

(173)

Return on ordinary activities before finance           costs and tax


 

753

 

1,727

 

2,480

Finance costs


(3)

(6)

(9)

Return on ordinary activities before tax


750

1,721

2,471

Tax on ordinary activities


(5)

-

(5)

Return attributable to shareholders


745

1,721

2,466

Return per Income share (pence)

5

2.68p

0.73p

3.41p

Return per Growth share (pence)

5

-

5.81p

5.81p

 

The total column of this statement is the Profit and Loss Account of the Company.

 

The supplementary revenue and capital columns are prepared under the guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing operations.

 

 



Condensed Income Statement (audited)

Year to 31 May 2015

 


Notes

Revenue

Capital

Total



£'000

£'000

£'000






Gains on investments

Foreign exchange losses


-

-

6,908

(4)

6,908

(4)

Income

2

2,260

-

2,260

Investment management and performance fee

3

(147)

(349)

(496)

Other expenses


(355)

-

(355)

Return on ordinary activities before finance costs and tax


 

1,758

 

6,555

 

8,313

Finance costs


(13)

(27)

(40)

Return on ordinary activities before tax


1,745

6,528

8,273

Tax on ordinary activities


(8)

-

(8)

Return attributable to shareholders


1,737

6,528

8,265

Return per Income share (pence)

5

5.87p

5.95p

11.82p

Return per Growth share (pence)

5

-

17.80p

17.80p

 

The total column of this statement is the Profit and Loss Account of the Company.

 

The supplementary revenue and capital columns are prepared under the guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing activities.

 

 



 

Unaudited Condensed Balance Sheet

As at 30 November 2015

 


Notes

Income Shares

Growth Shares

 

Total


 

£'000

£'000

£'000






Non-current assets





Investments

4

43,111

45,745

88,856

Current assets





Debtors

Cash at bank and on deposit


7,139

1,123

 

5,919

1,432

13,058

2,555



8,262

7,351

15,613






Creditors





Amounts falling due within one year


(1,673)

(1,613)

(3,286)

Net current assets


6,589

5,738

12,327

Net assets


49,700

51,483

101,183






Capital and reserves





Called-up share capital

7

4,254

3,428

7,682

Share premium


21,690

18,549

40,239

Capital redemption reserve


-

182

182

Special reserve


19,380

17,197

36,577

Capital reserves


3,009

12,127

15,136

Revenue reserve


1,367

-

1,367

Shareholders' Funds


49,700

51,483

101,183






Net asset value per share (pence)

8

116.84p

150.20p


 

 

 



Unaudited Condensed Balance Sheet

As at 30 November 2014

 


Notes

Income Shares

Growth Shares

 

Total


 

£'000

£'000

£'000






Non-current assets





Investments


34,277

38,110

72,387

Current assets





Debtors


67

567

634



67

567

634






Creditors





Amounts falling due within one year


(310)

(1,532)

(1,842)

Net current liabilities


(243)

(965)

(1,208)

Net assets


34,034

37,145

71,179






Capital and reserves





Called-up share capital


2,821

2,740

5,561

Share premium


6,083

8,372

14,455

Capital redemption reserve


-

182

182

Special reserve


19,380

15,901

35,281

Capital reserves


4,764

9,950

14,714

Revenue reserve


986

-

986

Shareholders' Funds


34,034

37,145

71,179






Net asset value per share (pence)

8

120.62p

142.24p


 



Condensed Balance Sheet (audited)

As at 31 May 2015

 



Income Shares

Growth Shares

 

Total


Notes

£'000

£'000

£'000






Non-current assets





Investments

4

43,964

45,012

88,976

Current assets





Debtors


110

44

154

Cash at bank and on deposit


1,388

1,063

2,451



1,498

1,107

2,605

Creditors





Amounts falling due within one year


(1,623)

(1,728)

(3,351)

Net current liabilities


(125)

(621)

(746)

Net assets


43,839

44,391

88,230






Capital and reserves





Called-up share capital


3,469

2,884

6,353

Share premium


13,346

10,927

24,273

Capital redemption reserve


-

182

182

Special reserve


19,380

17,197

36,577

Capital reserves


6,320

13,201

19,521

Revenue reserve


1,324

-

1,324

Shareholders' Funds


43,839

44,391

88,230






Net asset value per share (pence)

8

126.37p

153.92p


 



Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2015

 

 


Notes

Income Shares

Growth Shares

 

Total



£'000

£'000

£'000






Net cash inflow from operating activities

9

706

62

768

Investing activities





Purchases of investments


(3,371)

(3,291)

(6,662)

Sales of investments


1,199

1,237

2,436

Cash flows from investing activities


(2,172)

(2,054)

(4,226)

Cash flows before financing activities


(1,466)

(1,992)

(3,458)

Financing activities





Equity dividends paid


(964)

-

(964)

Net proceeds from issuance of new shares


2,165

2,361

4,526

Cash flows from financing activities


1,201

2,361

3,562

Net movement in cash and cash equivalents


(265)

369

104

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period


 

1,388

 

1,123

 

1,063

 

1,432

 

2,451

 

2,555

Represented by:

Cash at bank and short-term deposits


 

1,123

 

1,432

 

2,555








Unaudited Condensed Statement of Cash Flows (Restated*)

Six months to 30 November 2014

 


Notes

Income Shares

Growth Shares

 

Total



£'000

£'000

£'000






Net cash inflow from operating activities

9

456

91

547

Investing activities





Purchases of investments


(1,817)

(2,299)

(4,116)

Sales of investments


1,513

869

2,382

Cash flows from investing activities


(304)

(1,430)

(1,734)

Cash flows before financing activities


152

(1,339)

(1,187)

Financing activities





Equity dividends paid


(734)

-

(734)

Net proceeds from issuance of new shares

Sale of shares from treasury


841

-

-

278

841

278

Cash flows from financing activities


107

278

385

Net movement in cash and cash equivalents


259

(1,061)

(802)

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period


 

(467)

 

(208)

 

341

 

(720)

 

(126)

 

(928)

Represented by:

(Overdrafts)/cash at bank and short-term deposits


 

(208)

 

(720)

 

(928)






 

* Restated to comply with FRS 102 on Statement of Cash Flows (see note 1)

 



Condensed Statement of Cash Flows (Restated*)

Year to 31 May 2015

 

 

 


 

Notes

Income Shares

Growth Shares

 

Total



£'000

£'000

£'000






Net cash inflow from operating activities

9

1,130

186

1,316

Investing activities





Purchases of investments


(9,748)

(6,963)

(16,711)

Sales of investments


1,609

1,826

3,435

Cash flows from investing activities


(8,139)

(5,137)

(13,276)

Cash flows before financing activities


(7,009)

(4,951)

(11,960)

Financing activities





Equity dividends paid


(1,388)

-

(1,388)

Net proceeds from issue of new shares

Sale of shares from treasury


8,752

-

2,115

2,158

10,867

2,158

Loan drawn down


1,500

1,400

2,900

Cash flows from financing activities


8,864

5,673

14,537

Net movement in cash and cash equivalents


1,855

722

2,577

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period


 

(467)

 

1,388

 

341

 

1,063

 

(126)

 

2,451

Represented by:

Cash at bank and short-term deposits


 

1,388

 

1,063

 

2,451






 

* Restated to comply with FRS 102 on Statement of Cash Flows (see note 1)



Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2015

 

 

 

Notes

Income Shares

Growth Shares

 

Total



£'000

£'000

£'000






Opening shareholders' funds

Increase in share capital in issue


43,839

9,129

44,391

8,166

88,230

17,295

Transfer of net income from Growth shares to

  Income shares


 

196

 

(196)

 

-

Transfer of capital from Income shares to Growth

  shares


 

(196)

 

196

 

-

Dividends paid

6

(964)

-

(964)

Return attributable to shareholders


(2,304)

(1,074)

(3,378)

Closing shareholders' funds


49,700

51,483

101,183

 

 

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2014

 

 

 

Notes

Income Shares

Growth Shares

 

Total



£'000

£'000

£'000






Opening shareholders' funds

Increase in share capital in issue


32,978

841

35,350

-

68,328

841

Shares sold from treasury


-

278

278

Transfer of net income from Growth shares to

  Income shares


 

188

 

(188)

 

-

Transfer of capital from Income shares to Growth

  shares


 

(188)

 

188

 

-

Dividends paid

6

(734)

-

(734)

Return attributable to shareholders


949

1,517

2,466

Closing shareholders' funds


34,034

37,145

71,179






 

 

Condensed Statement of Changes in Equity (audited)

Year to 31 May 2015

 



Income Shares

Growth Shares

 

Total



£'000

£'000

£'000






Opening shareholders' funds

Increase in share capital in issue


32,978

8,752

35,350

           2,115

68,328

10,867

Shares sold from treasury


-

2,158

2,158

Transfer of net income from Growth shares to

  Income shares


 

393

 

(393)

 

-

Transfer of capital from Income shares to Growth

  shares


 

(393)

 

393

 

-

Dividends paid


(1,388)

-

(1,388)

Return attributable to shareholders


3,497

4,768

8,265

Closing shareholders' funds


43,839

44,391

88,230



 Statement of Principal Risks and Uncertainties

 

The Company's assets consist mainly of listed equity securities and its principal risks are therefore market-related.  The most important types of risk associated with financial instruments are credit risk, market price risk, liquidity risk, interest rate risk and foreign currency risk.  Other risks faced by the Company include external, investment and strategic, regulatory, operational and financial risks.

 

These risks, and the way in which they are managed, are described in more detail under the heading "Principal Risks" within the Strategic Report in the Company's 2015 Annual Report. 

 

The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remainder of the Company's financial year.

 

 

 

Statement of Directors' Responsibilities in Respect of the Interim Report

 

We confirm, that to the best of our knowledge:

 

·      the condensed set of financial statements have been prepared in accordance with applicable UK Accounting Standards on a going concern basis and give a true and fair view of the assets, liabilities, financial position and return of the Company;

 

·      the Chairman's Statement (constituting the Interim Management Report) together with the Statement of Principal Risks and Uncertainties shown above include a fair review of the information required by the Disclosure and Transparency Rules ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements; and

 

·      the condensed set of financial statements include a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during the period, and any changes in the related party transactions described in the last Annual Report that could do so.

 

 

 

On behalf of the Board

 

Richard M. Martin

Director

27 January 2016

 

 



Notes

 

1.  Accounting Policies

For the period ended 30 November 2015 (and the year ending 31 May 2016), the Company is applying, for the first time, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, which forms part of the revised Generally Accepted Accounting Practice ("New UK GAAP") issued by the Financial Reporting Council ("FRC") in 2012 and 2013.

 

These condensed financial statements have been prepared on a going concern basis in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, FRS 102, FRS 104 Interim Financial Reporting issued by the FRC in March 2015 and the revised Statement of Recommended Practice ("SORP") "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by the AIC in November 2014.

 

As a result of the first time adoption of New UK GAAP and the revised SORP, comparative amounts and presentation formats have been amended where required. The net return attributable to shareholders and total shareholders' funds remain unchanged under old UK GAAP basis, as reported in the preceding annual and interim reports. The Statement of Cash Flows has been restated to reflect presentational changes required under FRS 102 and does not include any other material changes.

 

The accounting policies applied for the condensed set of financial statements are set out in the Company's annual report for the year ended 31 May 2015. However, the references to prior individual FRSs should now be taken to reference FRS 102.

 

2.  Income


Six months to

30 November 2015

Six months to

30 November

2014

Year to

31 May

2015


£'000

£'000

£'000

UK dividends

741

637

1,351

Overseas dividends

541

348

889

Interest on fixed

  interest securities

Deposit income

 

9

7

 

8

-

 

16

4

Total income

1,298

993

2,260

 

3.  Investment management and performance fee

    There have been no changes to the terms of the management and performance fee arrangements with F&C Investment Business Limited, which are set out in detail in the Annual Report and Accounts to 31 May 2015. 

 

    During the period, the Company has incurred investment management fees of £287,000, (30 November 2014: £225,000; 31 May 2015: £496,000) of which £145,000 is payable to F&C Investment Business Limited at the period end.  

   

    At 30 November 2015 the total return of the Income Portfolio for the period since 31 May 2013 (being the date a performance fee was last payable) did not exceed that of the FTSE All-Share Index and a performance fee has not been recognised. At 30 November 2015 the total return of the Growth portfolio since launch did exceed that of the FTSE All-Share Index and a performance fee of £30,000 has been accrued in the Growth Portfolio (30 November 2014: £nil - Income Portfolio and Growth Portfolio; 31 May 2015: £nil - Income Portfolio and Growth Portfolio).                



 

4.  Investments


Income Shares

Level A*

£'000

Growth Shares

Level A*

£'000

 

Total

£'000

Cost at 31 May 2015

Gains at 31 May 2015

32,905

11,059

30,631

14,381

63,536

25,440

Valuation at 31 May 2015

Movement in the period:

Purchases at cost

Sales proceeds

(Losses)/gains on investments sold in the period

Losses on investments held at period end

43,964

 

3,374

(1,199)

(317)

(2,711)

45,012

 

3,086

(1,237)

128

(1,244)

88,976

 

6,460

(2,436)

(189)

(3,955)

Valuation of investments held at 30 November 2015

 

43,111

 

45,745

 

88,856

 


Income Shares

Level A*

£'000

Growth Shares

Level A*

£'000

 

Total

£'000

Cost at 30 November 2015

Gains at 30 November 2015

34,763

8,348

32,608

13,137

67,371

21,485

Valuation at 30 November 2015

43,111

45,745

88,856

 

* Fair value hierarchy

The Company's investments as disclosed in the balance sheet are valued at fair value. The fair value as at the reporting date has been estimated using the following fair value hierarchy:

 

Level (A) - Quoted prices for identical instruments in active markets

Level (B) - Prices of a recent transaction for identical instruments

Level (C) - Valuation techniques that use:

                    (i) Observable market data; or

                      (ii) Non-observable market data.

 

There are no investments held which are valued in accordance with levels B, C(i) or C(ii).

 

5.  Return per share

     The return per share for the six months to 30 November 2015 is as follows:

 


Income Shares

Growth Shares


Revenue

Capital

Total

Revenue

Capital

Total


£'000

£'000

£'000

£'000

£'000

£'000

Return attributable to

  Portfolios

 

811

 

(3,115)

 

(2,304)

 

196

 

(1,270)

 

(1,074)

Transfer of net income from Growth to Income Portfolio

 

196

 

-

 

196

 

(196)

 

-

 

(196)

Transfer of capital from

Income to Growth Portfolio

-

(196)

(196)

-

196

196

Return attributable to

  shareholders

 

1,007

 

(3,311)

 

(2,304)

 

-

 

(1,074)

 

(1,074)

Return per share

2.83p

(9.31)p

(6.48)p

-

(3.60)p

(3.60)p

Weighted average number of shares in issue during the period

 

 

35,559,855

 

 

29,836,768

             

 

    



The return per share for the comparative six months to 30 November 2014 is as follows:

 


Income Shares

Growth Shares


Revenue

Capital

Total

Revenue

Capital

Total


£'000

£'000

£'000

£'000

£'000

£'000

Return attributable to

  shareholders

 

745

 

204

 

949

 

-

 

1,517

 

1,517

Return per share

2.68p

0.73p

3.41p

-

5.81p

5.81p

Weighted average number of shares in issue during the period

 

 

27,851,275

 

 

26,106,100

 

 

 

The return per share for the comparative year to 31 May 2015 is as follows:

 


Income Shares

Growth Shares


Revenue

Capital

Total

Revenue

Capital

Total


£'000

£'000

£'000

£'000

£'000

£'000

Return attributable to

  shareholders

 

1,737

 

1,760

 

3,497

 

-

 

4,768

 

4,768

Return per share

5.87p

5.95p

11.82p

-

17.80p

17.80p

Weighted average number of shares in issue during the period

 

 

29,576,498

 

 

26,785,117

 

 

6.    Dividends

 

 

 

Six months to

30 November

2015

Six months to

30 November

2014

Year to

31 May

2015

Dividends on Income Shares

£'000

£'000

£'000

Amounts recognised as distributions during the period:




 

In respect of the previous financial year:




 - fourth interim of 1.55p (prior period: 1.5p) per share

 

538

416

416

In respect of the period under review:




- first interim of 1.20p (prior period: 1.15p) per share

426

318

318

- second interim (prior period: 1.15p per share)

-

-

325

- third interim (prior period: 1.15p per share)

-

-

329


964

734

1,388

 

       A second interim dividend in respect of the year to 31 May 2016 of 1.20p per Income share was paid on 4 January 2016 to shareholders on the register on 20 November 2015. This amount has not been accrued in the results for the six months to 30 November 2015.

                                                                                            

       For the financial year to 31 May 2015 interim dividends totalled 5.0p per Income share.

 

       The Growth shares do not carry an entitlement to receive dividends.



 

 

7.    Share capital


Listed

Held in Treasury

In issue


Number

£'000

Number

£'000

Number

£'000

Income shares of 10p each







Balance at 1 June 2015

34,689,936

3,469

-

-

34,689,936

3,469

Issued

7,845,099

785

-

-

7,845,099

785

Balance at 30 November 2015

42,535,035

4,254

-

-

42,535,035

4,254

 

During the period the Company issued 7,845,099 Income shares for net proceeds of £9,129,000 of which £7,023,000 is held as a debtor as at 30 November 2015. At 30 November 2015 the Company held nil Income shares in treasury. 

 

 


Listed

Held in Treasury

In issue


Number

£'000

Number

£'000

Number

£'000

Growth shares of 10p each







Balance at 1 June 2015

28,839,843

2,884

-

-

28,839,843

2,884

Issued

5,437,194

544

-

-

5,437,194

544

Balance at 30 November 2015

34,277,037

3,428

-

-

34,277,037

3,428

 

Total

 

76,812,072

 

7,682

 

-

 

-

 

76,812,072

 

7,682

 

  During the period the Company issued 5,437,194 Growth shares for net proceeds of £8,166,000 of which £5,870,000 is held as a debtor as at 30 November 2015. At 30 November 2014 the Company held nil Growth shares in treasury. 

 

8.     Net asset value per share


30 November

2015

30 November

2014

31 May

2015

Income shares




Net asset value per share

116.84p

120.62p

126.37p

Net assets attributable at end of

  period - £'000s

 

49,700

 

34,034

 

43,839

Shares in issue at end of period - number

42,535,035

28,214,936

34,689,936





Growth shares




Net asset value per share

150.20p

142.24p

153.92p

Net assets attributable at end of

  period - £'000s

 

51,483

 

37,145

 

44,391

Shares in issue at end of period - number

34,277,037

26,114,843

28,839,843

         

9.    Reconciliation of return on ordinary activities before tax to cash flows from operating activities

 

 

Six months to 30 November 2015

 

Income Shares

£'000

 

 Growth Shares

£'000

 

      Total

£'000

Return on ordinary activities before tax

Adjust for returns from non-operating activities:

(2,298)

 

 

(1,072)

(3,370)

Losses on investments

Exchange gains


              3,028                 1,116              

                   (3)                             -                                

4,144

           (3)

Return from operating activities

Increase in prepayments and accrued income

(Decrease)/increase in creditors

Withholding tax suffered


     727

 

      (6)

      (9)

     (6)

            44            771

 

             (5)           (11)

25                            16

(2)                            (8)

Net cash flows from operating activities


    706

             62           768

 

 

 

 

Six months to 30 November 2014

 

 

Income Shares

£'000

 

 

Growth Shares

£'000

 

 

Total

£'000

Return on ordinary activities before tax

Adjust for returns from non-operating activities:

952

 

 

1,519

2,471

Gains on investments

Exchange losses


                 (461)               (1,426)              

                     2                          -

(1,887)

                    2

Return from operating activities

Increase in prepayments and accrued income

(Decrease)/increase in creditors

Withholding tax suffered


       493

 

      (26)

      (8)

      (3)

            93            586

 

            5            (21)

(5)           (13)

(2)                           (5)

Net cash flows from operating activities


     456

             91           547

                                   

 

 

 

 

Year ended 31 May 2015

 

 

Income Shares

£'000

 

 

Growth Shares

£'000

 

 

Total

£'000

Return on ordinary activities before tax

Adjust for returns from non-operating activities:

3,503

 

 

4,770

8,273

Gains on investments

Exchange losses


               (2,315)            (4,593)              

                      4                       -

(6,908)

             4

Return from operating activities

(Increase)/decrease in prepayments and accrued income

Increase in creditors

Withholding tax suffered


       1,192

 

        (69)

        13

        (6)

          177        1,369

 

              5            (64)

 6                            19

(2)                            (8)

Net cash flows from operating activities


    1,130

           186        1,316

 

 

10.  Earnings for the six months to 30 November 2015 should not be taken as a guide to the results of the full year to 31 May 2016.

 

11.   Tax

       The effective revenue tax rate for the period to 30 November 2015 is 0.8 per cent (30 November 2014: 0.7 per cent; 31 May 2015: 0.5 per cent).  This is lower than the rate of corporation tax for small companies due to the level of non-taxable dividend income.

 

12.   Bank borrowing

       The Company has a one year £5 million unsecured revolving credit facility ("RCF") agreement with The Royal Bank of Scotland plc which was renewed after the period end, on 10 December 2015. £2.9 million of the RCF was drawn down at 30 November 2015 (£1.5 million was drawn down in the Income Portfolio and £1.4 million was drawn down in the Growth Portfolio). The interest rates on amounts drawn down are variable based on LIBOR plus a margin and a non-utilisation fee is payable on undrawn amounts.

 

13.   Going concern

       The Company's investment objective and policy is subject to regular Board monitoring processes and is designed to ensure that the Company is invested principally in listed securities. The Company retains title to all assets held by the Custodian. Cash is only held with banks approved and regularly reviewed by the Manager.

 

       The Directors believe in light of the controls and review processes and bearing in mind the nature of the Company's business and assets and revenue and expenditure projections, that the Company has adequate resources to continue in operational existence within its stated investment policy for a period of at least twelve months commencing from the date of this report. Accordingly, the financial statements have been drawn up on the basis that the Company is a going concern.

 

14.   Results

       The Company's auditors, Ernst & Young LLP have not audited or reviewed the Interim Report to 30 November 2015 pursuant to the Auditing Practices Board guidance on 'Review of Interim Financial Information'.  These are not full statutory accounts in terms of Section 434 of the Companies Act 2006 and are unaudited.  Statutory accounts for the year ended 31 May 2015, which received an unqualified audit report and which did not contain a statement under Section 498 of the Companies Act 2006, have been lodged with the Registrar of Companies.  The abridged financial statements included for the year ended 31 May 2015 are an extract from those accounts.  No full statutory accounts in respect of any period after 31 May 2015 have been reported on by the Company's auditors or delivered to the Registrar of Companies. The Interim Report will be posted to shareholders shortly and is available on the website: www.fcmanagedportfolio.co.uk 

 

 

For further information, please contact:

 

Peter Hewitt, F&C Investment Business Limited   0131 718 1244

Ian Ridge, F&C Investment Business Limited        0131 718 1010


This information is provided by RNS
The company news service from the London Stock Exchange
 
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