Annual Financial Report

RNS Number : 3422Q

F&C Capital & Income Inv Tst PLC

28 November 2016

 

Date:                28 November 2016

Contact:           Julian Cane                                                   

                        F&C Investment Business Limited                   

                        020 7628 8000                                               

F&C Capital and Income Investment Trust PLC

Audited Statement of Results

for the year ended 30 September 2016

Highlights

·      Total dividend of 10.30 pence per share - an increase of 2% on prior year and the 23^rd consecutive annual increase.

·      Over the 20 years of Julian Cane's tenure as Fund Manager, the NAV total return per share has risen by 299.1% against a benchmark return of 269.0%

·      NAV total return for the year of 16.6% is marginally shy of the benchmark return of 16.8%

·      Share price total return for the year was also 16.6%, with an average premium to NAV of 2.2%.

Summary of results

Attributable to Shareholders	30 September 2016	30 September 2015	% Change
Net asset value total return	16.6%	3.5%	n/a
Share price total return	16.6%	3.1%	n/a
Benchmark* total return	16.8%	(2.3)%	n/a
Net asset value per share	281.06p	250.51p	+12.2
Revenue return per share	11.26p	10.10p	+11.5
Dividends per share	10.30p	10.10p	+2.0
Share price	287.00p	256.00p	+12.1
Net asset value (£'000s)	272,027	236,876	+14.8
On-going charges	0.64%	0.64%	0.0

*FTSE All-Share Index

Chairman's Statement

Dear Shareholder,

'May you live in interesting times' is supposed to be a Chinese curse. It is apocryphal, but its nearest analogue translates as 'Better to be a dog in a peaceful time, than to be a human in a chaotic period.' 2016 has certainly been chaotic, but whether you view living through it as a curse or not rather depends on your point of view.

As we looked ahead to the year just finished, it seemed likely to offer more of the same - ultra low interest rates, but with quantitative easing ("QE") waning in impact on markets, greater correlation between assets, lowish growth  and relatively benign inflation. We posited that this was mildly encouraging for equity markets. For the first several months of the year, this is how it played out. There was a wobble at the beginning of 2016 triggered by the start of 'tapering' - the jargon used to explain that interest rates were beginning to rise in the US. This spooked markets a little, despite having been long forecast, but things soon settled. Indeed, there has still been no further 'taper', despite lots of speculation, and QE has been rampant in Japan, the EU and the UK. Things then jogged along until 24 June, when the Brexit vote threw a spanner in the works.

Several months on, we still have no clear idea of what Brexit actually means or how it can be achieved in such a way as not to damage the UK economy. The inevitable uncertainty which flows from this has been most visible in the collapse of Sterling, which has fallen around 16% against the US Dollar and 11% against the Euro since the referendum and will lead to a spike in inflation next year as the prices of imported goods rise. Whether this will be enough to tip the UK economy into recession remains to be seen, but the relatively healthy economic data which we have seen since June are beginning to fade, and it is likely that there will be some unpleasant shocks in our near future.

As an investor in equities, of course, your experience has been relatively benign. Up to the end of June, your Company's Net Asset Value ("NAV") had risen by 5.5%, compared with 8.4% for the FTSE-All Share Index. After the vote, in the last quarter of your Company's fiscal year, the NAV rose by 10.5% while the benchmark rose 7.8%. The rise in the market compensated by and large for the decline in Sterling - cushioning investors from the loss of purchasing power.

Of course, much of the UK stock market is made up of multinational businesses which are not especially sensitive to the currency (or indeed to the risks of Brexit) and it is notable that these have fared better in the 'new' world than those companies, often at the smaller end of the scale, which are exposed mostly to the domestic economy. Julian Cane, your portfolio manager, explains this in greater detail in his Manager's Review.

Performance

This year, the NAV per share on a total return basis rose by 16.6%. Our primary benchmark rose by 16.8%. This is a handsome absolute return in an uncertain time, even if marginally shy of the benchmark. It is important to point out, though, that as a Shareholder, you are more likely to be interested in the longer term numbers, and here I am pleased to report that the news is good. Over three years, , the NAV per share is up by 25.3%, compared with 21.1% for the benchmark; over five years, it is up 75.5% compared with 68.9%; and over 20 years, it has risen by 299.1% against a benchmark return of 269.0%. Over all these periods the share price has more or less kept pace with the NAV although, over the longest run period, the share price total return was 313.7%.  This is what you will have made had you held the shares and reinvested your dividends throughout.

The Manager's Review has a more detailed commentary on market movements and where our returns have come from, but although a good number of our investments reported strong results and impressive increases in their share prices, these weren't sufficient to beat the benchmark overall.  In summary, some of the decisions that were good in the previous year, proved less good this year.  For example, the Oil and Mining sectors had been very weak in the year to September 2015 and this had been positive for us as we had fairly little exposure to those areas.  However, their subsequent rebound has been painful for our returns relative to the benchmark in this latest year.   It wasn't that our investments did poorly, just that we didn't have enough of them.

Your Company has been geared throughout the year, with the debt level varying between £20m and £25m.  The returns generated on the assets bought with the borrowed money have been far in excess of the cost of the borrowing, so the gearing has been positive for Shareholder returns over the year.

I would like to digress here for a moment to explain that I have used the 20 year data as the start of that period corresponds closely to the point at which Julian Cane took over as your portfolio manager. Investment is a peculiar business and that stretch of time encompasses booms, busts, crises and various manifestations of market insanity. Not many managers stick to the last in the way Julian has, and even fewer can point to a record of adding value to what is a notorious task master of a benchmark. Boards have come and gone as have the owners of the F&C business. Julian has been a constant steward of the assets throughout and it seems to me that sometimes long tenure does not generate the respect it deserves. On the occasion of his twentieth anniversary, therefore, I would like to record formally the gratitude of the Board (and, I hope, the Shareholders) for a job well done.

Income account

The Company's revenue return per share was 11.26 pence, up by 11.5% from last year. Downward pressure on corporate profits has been a feature of the last year and has been the case for a while now. Earnings from the FTSE All-Share Index have fallen 38.6% over the year to September 2016, with much of this driven by the Oil and Mining sectors. Despite this unhelpful backdrop, dividends have remained quite robust, perhaps surprisingly, and pay-out ratios have risen. Julian's analysis and forecasts take account of potential cuts in dividend at a number of major UK companies, but the effect on our portfolio is not significant. Brexit is a further complicating factor, as many UK businesses earn their profits in US Dollars or Euros and so have benefited from Sterling's devaluation when reporting earnings and dividends. We expect that this will be a rather welcome support for dividends in the year ahead. Nevertheless, I will repeat last year's mantra, which is that many high yielding stocks are fully valued because income is in such short supply, and the search for sustainable and growing dividends has become more difficult.

You might have thought that all the 'events' of the past year would lead to spikes in market volatility, but in fact that has not been the case. This is relevant for us because elevated volatility has in the past allowed us to generate income from our option writing strategy. Low volatility makes this an uphill battle as options are cheap, meaning that writing them rarely justifies the risks of so doing.

So far this year, the Company has paid three interim dividends to Shareholders of 2.35 pence each, amounting to a total of 7.05 pence per share. We are proposing to pay a fourth dividend of 3.25 pence to bring the total for the year to 10.3 pence, an increase of 2.0 % on the year ago, and the 23^rd consecutive dividend increase. This dividend is fully covered by the revenue earnings of 11.26 pence per share.

I would emphasise the intention of the Board to offer Shareholders a stable and growing dividend over time and that we will use our revenue reserve, which currently stands at £11 million or 11.4 pence per share, to ensure that we continue to meet this objective in circumstances where the revenue account comes under pressure. In the year ahead, our preliminary expectations are that our revenue account will show a similar outcome to the year just completed.

As to costs, we have achieved an ongoing charges ratio of 0.64%, the same as last year. We keep a very close eye on expenses as we are conscious that for many of you, the alternative to an investment in your Company might well be a purchase of a unit trust, and that our charges must remain competitive with such other forms of investment vehicle. I hope that you share the Board's view that your Company remains a competitively priced, well managed investment product.

Discount/Premium

Over the fiscal year, the shares have traded at an average premium to NAV of 2.2%, in a range of +7.5% to -2.8%. This is very similar to the relationship which has characterised the last five years, with an average of a 2.3% premium within a range of +8.6% to -2.8%. In order to control the level of the premium, we have issued 2,225,000 shares this year, and taken in £5.8 million of new capital as a result. It is worth reiterating why this is positive for all Shareholders: first, issuing shares at a premium is mildly accretive for existing Shareholders (or at the very least not dilutive); and, second, it allows the fixed costs to be spread over a larger base and, finally, it gives the shares greater liquidity.  It also ensures those buying the shares don't pay too great a premium to invest in your Company.

In an environment where banks offer zero interest and gilt markets look a little threadbare, equities have increasingly been seen by investors as a reliable source of income. Companies like ours have benefited from this trend and the shares have traded consistently at a premium for several years now. Nevertheless, should this happy state end and the shares trade at a discount, we would of course adopt the alternative policy of buying them back so as to try to limit this.

At the Annual General Meeting in February, we will as usual be asking for authority to issue further shares without pre-emption rights equal to 10% of the shares in issue at the date of this report. These can only be issued at a premium which takes into account the need not to dilute existing Shareholders. We will also be seeking authority to renew our authorities to buy back shares. The Board believes these resolutions are in your interests and urges you to support them.

Governance matters

In recent years, this has been a long section. I am pleased to report that this year it is short. We have not faced any significant new regulatory developments (although there are some in the pipeline), we haven't changed the Board and your Company's even keel has been in contrast to the seismic political developments we have been suffering.

The Annual General Meeting will take place on 14 February 2017 in Exchange House at 11.30 am. Details are given in the annual report. Julian will be making his customary presentation on the investment scene, and all the Directors will be present to answer any questions you may have.

Outlook

Normally, it is quite amusing to speculate about what might happen in the year ahead. This year, I have to confess that I have no idea how the economic and political chips will fall not least given the recent election result in the US. In the world of stock market prognostication, the gurus who hit the headlines are invariably those who take extreme positions, while the outcome is almost always a form of 'muddling through'. Today we face a series of political choices which might affect the economic outlook for the UK for many years to come. I hope that what we end up with is a 'muddle through' but it is hard to hold that view with great confidence.

Equity markets in this country, though, will continue to benefit from low real interest rates and a devalued currency, even as they struggle to adjust to the likelihood of temporarily higher inflation. It is likely to be a better environment for an investor than for a consumer and as Julian embarks on his 21^st year at the helm, I wish him a fair wind and a firm hand on the tiller.

Steven Bates

Chairman

28 November 2016

Income Statement

for the year ended 30 September	2016			2015
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Gains/(losses) on investments and derivatives	-	29,310	29,310	-	(586)	(586)
Foreign exchange gains/(losses)	31	(4)	27	(4)	(48)	(52)
Income	12,155	-	12,155	10,848	-	10,848
Management fee	(555)	(555)	(1,110)	(520)	(520)	(1,040)
Other expenses	(511)	(7)	(518)	(576)	(12)	(588)
Net return before finance costs and taxation	11,120	28,744	39,864	9,748	(1,166)	8,582
Finance costs	(330)	(330)	(660)	(272)	(272)	(544)
Net return on ordinary activities before taxation	10,790	28,414	39,204	9,476	(1,438)	8,038
Taxation on ordinary activities	(5)	-	(5)	(1)	-	(1)
Net return attributable to Shareholders	10,785	28,414	39,199	9,475	(1,438)	8,037
Return per share - pence	11.26	29.66	40.92	10.10	(1.53)	8.57

The total column of this statement is the profit and loss account of the Company.

The revenue return 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.

Statement of Changes in Equity

for the year ended 30 September 2016
		Share	Capital				Total
	Share	premium	redemption	Special	Capital	Revenue	Shareholders'
	capital	account	reserve	reserve	reserves	reserve	funds
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Balance at 30 September 2015	23,640	107,785	4,146	4,434	86,791	10,080	236,876
Movements during the year      ended 30 September 2016
Dividends paid	-	-	-	-	-	(9,816)	(9,816)
Ordinary shares issued	556	5,212	-	-	-	-	5,768
Net return attributable to     Shareholders	-	-	-	-	28,414	10,785	39,199
Balance at 30 September 2016	24,196	112,997	4,146	4,434	115,205	11,049	272,027

for the year ended 30 September 2015
		Share	Capital				Total
	Share	premium	redemption	Special	Capital	Revenue	Shareholders'
	capital	account	reserve	reserve	reserves	reserve	funds
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Balance at 30 September 2014	22,977	101,615	4,146	4,434	88,229	9,986	231,387
Movements during the year      ended 30 September 2015
Dividends paid	-	-	-	-	-	(9,381)	(9,381)
Ordinary shares issued	663	6,170	-	-	-	-	6,833
Net return attributable to     Shareholders	-	-	-	-	(1,438)	9,475	8,037
Balance at 30 September 2015	23,640	107,785	4,146	4,434	86,791	10,080	236,876

Balance Sheet

at 30 September	2016	2015
	£'000s	£'000s
Fixed assets
Investments	296,594	260,898
Current assets
Debtors	1,193	1,704
Creditors: amounts falling due within one year	(760)	(5,726)
Net current assets/(liabilities)	433	(4,022)
Total assets less current liabilities	297,027	256,876
Creditors: amounts falling due in more than one year
Loans	(25,000)	(20,000)
Net assets	272,027	236,876
Capital and reserves
Share capital	24,196	23,640
Share premium account	112,997	107,785
Capital redemption reserve	4,146	4,146
Special reserve	4,434	4,434
Capital reserves	115,205	86,791
Revenue reserve	11,049	10,080
Total Shareholders' funds	272,027	236,876
Net asset value per ordinary share - pence	281.06	250.51

Statement of Cash Flows

for the year ended 30 September

	2016	2015
	£'000s	£'000s
Net cash inflow from operating activities	10,295	9,283
Investing activities
Purchase of investments	(42,272)	(51,056)
Sales of investments	34,720	32,958
Other capital charges	(2)	(17)
Cash flows from investing activities	(7,554)	(18,115)
Cash flows before financing activities	2,741	(8,832)
Financing activities
Equity dividends paid	(9,816)	(9,381)
Net proceeds from issuance of new shares	5,768	6,833
Interest paid	(784)	(409)
Increase in loans	5,000	-
Cash flows from financing activities	168	(2,957)
Net movement in cash and cash equivalents	2,909	(11,789)
Cash and cash equivalents at the beginning of the year	(3,276)	8,561
Effect of movement in foreign exchange	27	(48)
Cash and cash equivalents at the end of the year	(340)	(3,276)
Represented by:
Bank overdraft	(340)	(3,276)

Notes

1   Return per ordinary share

Revenue return

The revenue return per share of 11.26p (2015: 10.10p) is based on the revenue return attributable to Shareholders of £10,785,000 profit (2015: £9,475,000 profit).

Capital return

The capital return per share of 29.66p (2015: (1.53p) is based on the capital return attributable to Shareholders of £28,414,000 profit (2015: £1,438,000 loss).

Total return

The total return per share of 40.92p (2015: 8.57p) is based on the total return attributable to Shareholders of £39,199,000 profit (2015: £8,037,000 profit).

Weighted average ordinary shares in issue

Both the revenue and capital returns per share are based on a weighted average of 95,807,560 (2015: 93,820,364) ordinary shares in issue during the year.

2   Dividends

The Directors have declared a fourth interim dividend in respect of the year ended 30 September 2016 of 3.25 pence per share, payable on 30 December 2016 to all Shareholders on the register at close of business on 9 December 2016.

3   Financial risk management

The Company is an investment company, listed on the London Stock Exchange, and conducts its affairs so as to qualify in the United Kingdom ("UK") as an investment trust under the provisions of section 1158 of the Corporation Tax Act 2010 ("CTA"). In so qualifying, the Company is exempted in the UK from corporation tax on capital gains on its portfolio of investments.

The Company's investment objective is to secure long term capital and income growth from a portfolio consisting mainly of FTSE All-Share companies. The Company can also have exposure to leading overseas companies, with the value of the non-UK portfolio not exceeding 10% of the Company's gross assets. In pursuing this objective, the Company is exposed to financial risks which could result in a reduction of either or both of the value of the net assets and the profits available for distribution by way of dividend. These financial risks are principally related to the market (currency movements, interest rate changes and security price movements), liquidity and credit. The Board, together with F&C Investment Business Limited ("F&C"), is responsible for the Company's risk management. The Directors' policies and processes for managing the financial risks are set out in (a), (b) and (c) below.

The accounting policies which govern the reported Balance Sheet carrying values of the underlying financial assets and liabilities, as well as the related income and expenditure, are in compliance with UK accounting standards and best practice. The Company does not make use of hedge accounting rules.

(a) Market risks

The fair value of equity and other financial securities including derivatives held in the Company's portfolio fluctuates with changes in market prices. Prices are themselves affected by movements in currencies and interest rates and by other financial issues, including the market perception of future risks. The Board sets policies for managing these risks within the Company's objective and meets regularly to review full, timely and relevant information on investment performance and financial results. F&C assesses exposure to market risks when making each investment decision and monitors ongoing market risk within the portfolio.

As up to 10% of the Company's gross assets can be invested in non-UK assets, other assets and liabilities may be denominated in currencies other than sterling and may also be exposed to interest rate risks. F&C and the Board regularly monitor these risks. The Company does not normally hold significant cash balances. It is not the Board's general policy to borrow in currencies other than sterling and euros, any such borrowings would be limited to amounts and currencies commensurate with the portfolio's exposure to those currencies, thereby limiting the Company's exposure to future changes in foreign exchange rates.

A description of derivative positions, which are also exposed to market price changes, together with F&C's and Board's strategies for using these positions for efficient portfolio management, is contained in this note under "Other market risk exposures". The exposure on the Company's positions at 30 September 2016 amounted to £nil (30 September 2015 - £nil).

Gearing may be short or long-term in foreign currencies and enables the Company to take a long-term view of the countries and markets in which it is invested without having to be concerned about short-term volatility.

Income earned in foreign currencies is converted to sterling on receipt. The Board regularly monitors the effects on net revenue of interest earned on deposits and paid on gearing.

Other market risk exposures

The portfolio of investments, valued at £296,594,000 at 30 September 2016 (2015: £260,898,000) is exposed to market price changes.  F&C assesses these exposures at the time of making each investment decision.  The Board reviews the overall exposures at each meeting against indices and other relevant information. 

(b) Liquidity risk

The Company is required to raise funds to meet commitments associated with financial instruments and share buybacks. These funds may be raised either through the realisation of assets or through increased borrowing. The risk of the Company not having sufficient liquidity at any time is not considered by the Board to be significant, given: the number of quoted investments held in the Company's portfolio (76 at 30 September 2016 and 80 at 30 September 2015); the liquid nature of the portfolio of investments; the industrial and geographical diversity of the portfolio; and the existence of an ongoing loan and overdraft facility agreement. Cash balances are held with approved banks, usually on overnight deposit. F&C reviews liquidity at the time of making each investment decision. The Board reviews liquidity exposure at each meeting.

The Company has a loan facility with State Street Bank and Trust Company of £35 million.

(c) Credit risk and counterparty exposure

The Company is exposed to potential failure by counterparties to deliver securities for which the Company has paid, or to pay for securities which the Company has delivered. Such transactions must be settled on the basis of delivery against payment (except where local market conditions do not permit).

Responsibility for the approval, limit setting and monitoring of counterparties is delegated to F&C and a list of approved counterparties is periodically reviewed by the Board. Broker counterparties are selected based on a combination of criteria, including credit rating, balance sheet strength and membership of a relevant regulatory body. The rate of default in the past has been negligible. Cash and deposits are held with approved banks.

The Company has an ongoing contract with its custodian for the provision of custody services. The contract is reviewed regularly. Details of securities held in custody on behalf of the Company are received and reconciled monthly. The Company's Depositary, JP Morgan Europe Limited, has regulatory responsibilities relating to segregation and safe keeping of the Company's financial assets, amongst other duties. The Board has direct access to the Depositary and receives regular reports from it via F&C.

To the extent that F&C carries out management and administrative duties (or causes similar duties to be carried out by third parties) on the Company's behalf, the Company is exposed to counterparty risk. The Board assesses this risk through regular meetings with the management of F&C (including the Fund Manager) and with F&C's Risk Management function. In reaching its conclusions, the Board also reviews the F&C's parent group's annual audit and assurance faculty report.

None of the Company's financial liabilities are past their due date or impaired.

4    Annual general meeting

The Annual General Meeting will be held at the registered office of the Company, Exchange House, Primrose Street, London EC2A 2NY on Tuesday 14 February 2017 at 11.30 a.m.

5    Report and accounts

The report and accounts for the year ended 30 September 2016 will be posted to Shareholders and made available on the website www.fandccit.com shortly. Copies may also be obtained from the Company's registered office, Exchange House, Primrose Street, London EC2A 2NY.

By order of the Board

F&C Investment Business Limited, Secretary

28 November 2016

Principal Risks and Future Prospects

The principal risks and their mitigations are described below. Note 23 on the report and accounts details the Financial Risk Management of the Company. The risks that affect the Company's ongoing operations may vary in significance from time to time. The principal risks identified as most relevant to the assessment of the Company's future prospects and viability were those relating to potential investment portfolio under-performance and its effect on the share price; discount movement; dividends; and threats to security over the Company's assets.

·      Risk description:  Inappropriate business  or marketing strategy particularly in relation to investor needs giving rise to a share price discount to net asset value per share. Unchanged throughout the year under review.

Mitigation: The Board holds a separate meeting each year to consider strategic issues.  Market intelligence is maintained via the Company's Broker. The effectiveness of the marketing strategy is  reviewed at each meeting. Shareholder satisfaction surveys are conducted at least every five years ahead of the Company's continuation vote. A share buyback policy would be employed in the event of extensive discount volatility.

·      Risk description: Unfavourable markets or asset allocation, sector and stock selection and use of gearing and derivatives are inappropriate giving rise to investment under-performance as well as impacting capacity to pay dividends. Unchanged throughout the year under review. 

Mitigation: The portfolio of quoted securities is diversified and the Company's structure enables it to take a long-term view. Investment policy, performance, revenue and gearing are reviewed at each Board meeting. F&C's Performance and Risk Oversight team provides independent oversight on investment risk. The Board regularly considers operating costs and underlying dividend income and the implications for the dividend paying capacity of the Company.

·      Risk description: Failure of F&C as the Company's main service provider to continue to operate effectively including the loss of key staff. Unchanged throughout the year under review.

Mitigation: The Board meets regularly with the management of F&C and meets their risk management team to review internal control and risk reports. F&C's appointment is reviewed annually and can be terminated at six month's notice. They structure their recruitment and remuneration packages in order to retain key staff and work closely with the Board on any significant management changes.

·      Risk description: Errors, fraud or control failures at service providers or loss of data through increasing cyber-threats or business continuity failure could damage reputation or investors' interests or result in losses. Risks of cyber-attacks increased in the year under review.

Mitigation: The Board receives regular control reports from F&C covering risk and compliance including oversight of third party service providers. The Board has access to their Head of Business Risk and requires any significant issues directly relevant to the Company to be reported immediately. The Depositary is specifically liable for loss of any of the Company's securities and cash held in custody.

 

Rolling Three Year Viability Horizon

When considering the risk of under-performance, the Board assessed and evaluated the following areas through a series of stress tests:

• potential illiquidity of the Company's portfolio;

• the effects of any substantial future falls in investment values and income receipts on the ability to repay and re-     negotiate borrowings;

• potential breaches of loan covenants, the maintenance of dividend payments and retention of investors; and

• the potential need for extensive share buybacks in the event of share price volatility and a move to a wide discount.

Based on this assessment and evaluation of the Company's future prospects and viability, the Board has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the coming three years; the Company's business model, strategy and the embedded characteristics have helped define and maintain the stability of the Company since inception. The Board expects this to continue and will assess viability over subsequent three year rolling periods.

 Statement of Directors' Responsibilities in Respect of the Financial Statements

In accordance with Chapter 4 of the Disclosure and Transparency Rules the Directors confirm, that to the best of their knowledge:

·      the financial statements, prepared in accordance with applicable accounting standards, on a going concern basis,  give a true and fair view of the assets, liabilities, financial position and profit of the Company;

·      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 they face; and

·      the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for Shareholders to assess the Company's position and performance, business model and strategy; and

·      the financial statements and the Directors' Report include details on related party transactions.

On behalf of the Board

Steven Bates

Chairman

28 November 2016

 

END

 

 

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