Results for the six months to 30 April 2015

RNS Number : 2871P

Edinburgh Worldwide Inv Trust PLC

05 June 2015

 

RNS Announcement

Edinburgh Worldwide Investment Trust plc

Results for the six months to 30 April 2015

Since 1 February 2014, the Company has been invested in a diversified portfolio of companies which individually offer significant long term growth potential and typically have a market capitalisation of less than US$5bn at the time of initial investment.

¾  Over the six month period the Company's net asset value per share† increased by 14.7% while the comparative index* increased by 10.4%. The share price rose by 17.7%.

¾   Revenue losses per share were 0.31p (six months to 30 April 2014: losses of 0.05p) and no interim dividend is being recommended. The Company's objective remains that of generating capital growth, with any revenue generated a by-product of this.

¾  A number of the Company's holdings contributed to the positive performance, notably: 4D Pharma, a UK based biotechnology company developing natural bacteria-derived therapeutics; Xeros Group, a UK developer a polymer bead based cleaning technology; and Galapagos, a Belgian biotechnology company.

¾  The approach adopted by the Managers is to identify innovative, immature companies that are believed to have excellent long term growth potential, so there will be periods when performance differs notably from the comparative index.  However, the Board and Managers are enthused by the range and type of companies held and believe that long term investors will benefit from the Company's diversified portfolio of exciting growth stocks.

†  Cum income with debt at fair value.

* S&P Citigroup Global Small Cap Index (in sterling terms). 

Past performance is not a guide to future performance.

Edinburgh Worldwide aims to achieve long term capital growth by investing primarily in listed companies throughout the world. The Company has total assets of £268 million (before deduction of loans of £31.0 million) as at 30 April 2015.

Edinburgh Worldwide is managed by Baillie Gifford, the Edinburgh based fund management group with around £126 billion under management and advice as at 4 June 2015.

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. This is because the share price is determined by the changing conditions in the relevant stockmarkets in which the Company invests and by the supply and demand for the Company's shares. Investment in investment trusts should be regarded as medium to long-term. You can find up to date performance information about Edinburgh Worldwide on the Edinburgh Worldwide page of the Managers' website at http://www.edinburghworldwide.co.uk‡

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

5 June 2015

For further information please contact:

Anzelm Cydzik, Baillie Gifford & Co  Tel: [phone]

Roland Cross, Director, Broadgate Mainland  Tel: [phone]

The following is the unaudited Half-Yearly Financial Report for the six months to 30 April 2015.

Responsibility statement

We confirm that to the best of our knowledge:

a)   the condensed set of financial statements has been prepared in accordance with the Accounting Standards Board's statement 'Half-Yearly Financial Reports';

b)   the Half-Yearly Management Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R (indication of important events during the first six months, their impact on the financial statements and a description of principal risks and uncertainties for the remaining six months of the year); and

c)   the Half-Yearly Financial Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.8R (disclosure of related party transactions and changes therein).

By order of the Board

David HL Reid

Chairman

4 June 2015

 

Half-yearly management report

Over the six months to 30 April 2015, the Company's net asset value per share increased by 14.7%, which compares to a rise of 10.4% in the S&P Citigroup Global Small Cap Index (in sterling terms) over the same period. The share price rose by 17.7% to 453p, representing a discount of 6.1% to the net asset value at 30 April 2015. This compares to a discount of 8.5% at the beginning of the period.

It is now over 15 months since the Edinburgh Worldwide broadened its remit to more explicitly target, at the time of initial investment, exciting stock specific opportunities in the global smaller companies' area. Following an initial period of underperformance, portfolio returns have recovered strongly; the Company's net asset value, as at 30 April 2015, is up 10.4% since the end of January 2014 and has risen 31.1% from the trough in May last year.

Our approach is to identify innovative, immature companies with what we believe to be excellent long term growth potential. By identifying attractive growth companies earlier we seek to benefit from growth at an earlier stage in a company's lifecycle and retain ownership of successful companies as they grow and thrive; we see our role as investing in what are potentially the larger companies of the future as opposed to the smaller companies of today. It is an approach that requires patience, a long term mindset and recognition that progress in young companies is rarely linear. In addition, it will inevitably have periods when it is out of sync with the myopic gyrations that are all too common in stock markets.

Portfolio Update

A number of the Company's healthcare holdings announced encouraging progress over the six months under review. 4D Pharma, a company developing natural bacteria-derived therapeutics, reported that it had identified bacterial strains with disease modifying effects in models of rheumatoid arthritis and asthma. Dexcom reported very strong uptake of its continuous blood glucose monitoring technology; the technology is in the relatively early stages of adoption within the diabetic community and we remain excited with regard to the growth profile and product evolution. Two European biotechnology holdings reported encouraging news. Galapagos produced strong clinical trial data for its novel anti-inflammatory drug and Cellectis received what we consider to be a valuable patent with

regard to gene editing which reinforces its efforts to engineer cell-based anticancer therapeutics.

Elsewhere in the portfolio, Yoox agreed to acquire Richemont's Net-a-Porter business in an all-share deal that will create an industry leader in the online luxury goods market. Xeros, a company developing a disruptive polymer-based laundry offering made good progress at building out its commercial footprint and we are encouraged by early adoption of the technology and feedback from users. MarketAxess, an electronic bond trading platform, benefitted from increased share gains in the trading of US investment grade bonds and saw strong operational returns as a result. On a less encouraging note Stratasys reduced its shorter term earnings guidance as an increased level of investment in the business has coincided with weak demand for 3D printers at the start of this year. Our view is that the adoption of 3D printing within the industrial setting is still at a relatively early stage. While the sale of high-ticket printing machines can be lumpy, we are encouraged to see robust sales of consumables at Stratasys indicative of increasing utilisation of installed machines. We are watching closely how the industry develops and our belief is that structural growth will prevail given the extent to which automation and additive manufacturing techniques are likely to transform how many products are made; in this regard it is interesting to note the extent to which the aerospace industry is increasingly using 3D printed parts on commercial aircraft.

We acquired a number of new holdings in the period including Ilika and Genmab. Ilika, is a British materials innovation company that uses patented high throughput techniques to make, characterise and test functional materials. In conjunction with its partner Toyota, the company has developed a unique processing methodology to produce stackable solid state lithium ion batteries, overcoming the shortcomings associated with liquid electrolytes or other attempts at solid state batteries. Whilst early stage, we consider Ilika an exciting long term investment opportunity with clear disruptive potential across many areas of consumer electronics. Genmab is a Danish therapeutic antibody company focused on developing humanised antibodies to treat cancer. It has developed a range of technologies that can be used to increase the potency of antibodies. Through applying this know-how to both their internal drug candidates, in addition to externally sourced antibodies, we believe Genmab is well positioned to help drive significant improvements in cancer therapy over the coming years.

The holding in Westport Innovations was sold as we lost conviction that the company would be able to commercialise its natural gas powered engine technology successfully. The holding in IMAX was also sold as improvements in virtual reality headsets could pose a long term challenge to the immersive cinema experience on which the IMAX franchise is built.

The principal risks and uncertainties facing the Company are set out in note 9.

Past performance is not a guide to future performance.

 

Income statement (unaudited)

	For the six months ended 30 April 2015			For the six months ended 30 April 2014			For the year ended 31 October 2014 (audited)
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gains on sales of investments	-	2,637	2,637	-	103,222	103,222	-	105,038	105,038
Movements in investment holding gains and (losses)	-	29,211	29,211	-	(129,385)	(129,385)	-	(108,990)	(108,990)
Currency gains	-	466	466	-	396	396	-	749	749
Income from investments and interest receivable	445	-	445	522	-	522	1,186	-	1,186
Investment management fee (note 3)	(205)	(614)	(819)	(181)	(543)	(724)	(362)	(1,085)	(1,447)
Other administrative expenses	(259)	-	(259)	(217)	-	(217)	(428)	-	(428)
Net return before finance costs and taxation	(19)	31,700	31,681	124	(26,310)	(26,186)	396	(4,288)	(3,892)
Finance costs of borrowings	(110)	(330)	(440)	(96)	(289)	(385)	(195)	(584)	(779)
Net return on ordinary activities before taxation	(129)	31,370	31,241	28	(26,599)	(26,571)	201	(4,872)	(4,671)
Tax on ordinary activities	(24)	-	(24)	(52)	-	(52)	(133)	-	(133)
Net return on ordinary activities after taxation	(153)	31,370	31,217	(24)	(26,599)	(26,623)	68	(4,872)	(4,804)
Net return per ordinary share (note 4)	(0.31p)	64.01p	63.70p	(0.05p)	(54.28p)	(54.33p)	0.14p	(9.94p)	(9.80p)
Dividends paid and proposed per ordinary share (note 5)	-			0.50p			2.00p

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

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

A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

 

Balance sheet (unaudited)

	At 30 April 2015 £'000	At 30 April 2014 £'000	At 31 October 2014 (audited) £'000
Fixed assets
Investments held at fair value through profit or loss	260,414	207,699	227,012
Current assets
Debtors	530	162	130
Cash and short term deposits	8,259	6,422	10,595
	8,789	6,584	10,725
Creditors
Amounts falling due within one year (note 6)	(1,347)	(29,495)	(513)
Net current assets/(liabilities)	7,442	(22,911)	10,212
Total assets less current liabilities	267,856	184,788	237,224
Creditors
Amounts falling due after more than one year (note 6)	(31,012)	-	(30,862)
Net assets	236,844	184,788	206,362
Capital and reserves
Called up share capital	2,450	2,450	2,450
Share premium	82,180	82,180	82,180
Special reserve	35,220	35,220	35,220
Capital reserve	116,176	63,079	84,806
Revenue reserve	818	1,859	1,706
Shareholders' funds	236,844	184,788	206,362
Net asset value per ordinary share (after deducting borrowings at fair value) (note 6)	482.21p	376.81p	420.58p
Net asset value per ordinary share (after deducting borrowings at par)	483.31p	377.08p	421.11p
Ordinary shares in issue (note 7)	49,004,319	49,004,319	49,004,319

 

Reconciliation of movements in shareholders' funds (unaudited)

For the six months ended 30 April 2015

	Called up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2014	2,450	82,180	35,220	84,806	1,706	206,362
Net return on ordinary activities after taxation	-	-	-	31,370	(153)	31,217
Dividends paid during the period (note 5)	-	-	-	-	(735)	(735)
Shareholders' funds at 30 April 2015	2,450	82,180	35,220	116,176	818	236,844

For the six months ended 30 April 2014

	Called up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2013	2,450	82,180	35,220	89,678	2,618	212,146
Net return on ordinary activities after taxation	-	-	-	(26,599)	(24)	(26,623)
Dividends paid during the period (note 5)	-	-	-	-	(735)	(735)
Shareholders' funds at 30 April 2014	2,450	82,180	35,220	63,079	1,859	184,788

For the year ended 31 October 2014 (audited)

	Called up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2013	2,450	82,180	35,220	89,678	2,618	212,146
Net return on ordinary activities after taxation	-	-	-	(4,872)	68	(4,804)
Dividends paid during the year (note 5)	-	-	-	-	(980)	(980)
Shareholders' funds at 31 October 2014	2,450	82,180	35,220	84,806	1,706	206,362

*      The Capital reserve as at 30 April 2015 includes investment holding gains of £33,219,000 (30 April 2014 - losses of £16,387,000 and 31 October 2014 - gains of £4,008,000).

 

Condensed cash flow statement (unaudited)

	Six months to 30 April 2015 £'000	Six months to  30 April 2014 £'000	Year to 31 October 2014 (audited) £'000
Net cash outflow from operating activities	(607)	(518)	(700)
Net cash outflow from servicing of finance	(441)	(389)	(773)
Total tax paid	(20)	(51)	(133)
Net cash outflow from financial investment	(533)	(4,966)	(1,532)
Equity dividends paid (note 5)	(735)	(735)	(980)
Net cash inflow from financing	-	-	1,632
Decrease in cash	(2,336)	(6,659)	(2,486)
Reconciliation of net cash outflow to movement in net debt
Decrease in cash in the period	(2,336)	(6,659)	(2,486)
Increase in bank loan	-	-	(1,632)
Exchange movement on bank loans	(150)	779	593
Movement in net debt in the period	(2,486)	(5,880)	(3,525)
Net debt at start of the period	(20,267)	(16,742)	(16,742)
Net debt at end of the period	(22,753)	(22,622)	(20,267)
Reconciliation of net return before finance costs and taxation to net cash outflow from operating activities
Net return before finance costs and taxation	31,681	(26,186)	(3,892)
(Gains)/losses on investments	(31,848)	26,163	3,952
Currency gains	(466)	(396)	(749)
Changes in debtors and creditors	26	(99)	(11)
Net cash outflow from operating activities	(607)	(518)	(700)

 

Portfolio and equity performance at 30 April 2015 (unaudited)

Name	Business	Value £'000	% of total assets	Performance†
				Absolute %	Relative %
Alnylam Pharmaceuticals	Therapeutic gene silencing	11,580	4.3	14.4	2.7
IP Group	Intellectual property commercialisation	9,686	3.6	(4.1)	(13.9)
MarketAxess	Electronic bond trading platform	9,225	3.4	38.8	24.7
4D Pharma	Bacteria derived novel therapeutics	8,751	3.3	107.3	86.1
Tesla Motors	Electric cars	6,605	2.5	(2.6)	(12.6)
Ocado	Online food retailer	6,390	2.4	43.0	28.4
TripAdvisor	Online travel review platform	5,787	2.2	(5.5)	(15.1)
Zillow	US online real estate portal	5,771	2.2	(6.5)	(16.1)
IPG Photonics	High-power fibre lasers	5,639	2.1	25.6	12.8
Xeros	Commercial laundry manufacturer	5,442	2.0	176.1	147.9
Financial Engines	Investment advisory firm	5,214	1.9	10.7	(0.6)
EPAM Systems	Outsourced software and services	4,829	1.8	41.1	26.7
LinkedIn	Professional networking site	4,803	1.8	14.7	3.0
Galapagos	Clinical stage biotechnology company	4,582	1.7	214.0	182.0
Dialog Semiconductor	Analogue chips for mobile phones	4,558	1.7	37.6	23.6
Dexcom	Real time blood glucose monitoring	4,481	1.7	56.5	40.5
Stamps.com	Website for postage services	4,315	1.6	74.6	56.8
Cosmo Pharmaceuticals	Therapies for gastrointestinal diseases	3,643	1.4	11.2	(0.2)
iRobot	Domestic and military robots	3,601	1.3	(5.5)	(15.2)
Renishaw	Measurement and calibration equipment	3,521	1.3	41.5	27.1
M3	Online medical database	3,450	1.3	20.3	8.0
Splunk	Data diagnostics	3,345	1.2	4.5	(6.1)
Seek	Online recruitment portal	3,334	1.2	(7.4)	(16.8)
MonotaRO	Online business supplies	3,317	1.2	40.3	26.0
ASOS	Online fashion retailer	3,194	1.2	41.5	27.1
Temenos	Banking software	3,114	1.2	8.7	(2.4)
Nanoco	Quantum dot manufacturer	3,071	1.1	(4.7)	(14.4)
Seattle Genetics	Antibody conjugates based biotechnology	3,028	1.1	(2.5)	(12.5)
Morphosys	Therapeutic antibodies	3,013	1.1	(20.8)	(28.9)
Imagination Technologies	Graphics semiconductor designer	2,987	1.1	3.3	(7.3)
Genus	Animal breeding services	2,968	1.1	10.6	(0.7)
Foundation Medicine	Develops cancer diagnostic technology	2,961	1.1	83.1	71.1
Kingdee	Enterprise management software	2,955	1.1	90.6	64.4
Novadaq Technologies	Medical systems for intra-surgical imagining	2,869	1.1	(28.0)	(35.3)
Aerovironment	Small unmanned aircraft systems	2,864	1.1	(13.0)	(21.9)
Next	Provides online property information	2,848	1.1	85.7	66.7
Rightmove	UK online property portal	2,848	1.1	50.0	34.7
Cellectis	Biotech focused on genetic engineering	2,835	1.1	171.1	143.4
Stratasys	3D printer manufacturer	2,789	1.0	(67.6)	(70.9)
Wirecard	Internet payment and processing services	2,706	1.0	28.5	15.3
Genomic Health	Genomic-based clinical diagnostic tests for   cancer	2,650	1.0	(22.3)	(30.3)
Bitauto	Chinese automotive website	2,571	1.0	(26.0)	(33.6)
Name	Business	Value £'000	% of total assets	Performance†
				Absolute %	Relative %
Digital Garage	Internet business incubator	2,530	0.9	16.2	4.3
Victrex	High-performance thermo-plastics	2,514	0.9	21.6	9.2
Xaar	Ink jet printing technology	2,513	0.9	57.6	41.5
Faro Technologies	Designs and develops measurement devices	2,407	0.9	(26.0)	(33.5)
Xero	Cloud-based accounting software	2,324	0.9	27.9	14.9
SDL	Language translation services	2,248	0.8	19.6	7.4
Start Today	Internet fashion retailer	2,247	0.8	22.2	9.8
CTS Eventim	Event ticketing and promotion	2,237	0.8	34.9	21.1
Xing	Professional networking	2,159	0.8	62.8	46.1
FEI	Electron microscopes	2,145	0.8	(6.3)	(15.9)
Genmab	Distributes over-the-counter and personal care   products	2,107	0.8	77.4*	58.3*
Oxford Instruments	Produces advanced instrumentation   equipment	2,076	0.8	(13.5)	(22.3)
Hvivo (formerly Retroscreen   Virology)	Outsourced pre-clinical analytical services	2,072	0.8	23.1	10.5
Abcam	Scientific reagent supplier	2,046	0.8	33.9	20.3
Basware	Software solutions for financial transactions	2,028	0.8	(4.6)	(14.3)
Noah	Distributes wealth management products in   China	1,982	0.7	115.1	93.2
AAC Technologies	Miniature acoustic components	1,930	0.7	(7.7)	(17.1)
Yoox	Online luxury fashion retailer	1,915	0.7	78.3	60.1
Zumtobel	Commercial lighting	1,865	0.7	61.8	45.3
Teradyne	Semiconductor testing equipment   manufacturer	1,781	0.7	3.8	(6.8)
Tissue Regenix	Regenerative medical devices	1,770	0.7	(15.8)	(24.4)
MakeMyTrip	Online travel services	1,709	0.6	(26.8)	(34.3)
Exa	Simulation software and services	1,598	0.6	17.0	5.1
Acacia Research	Patent licenser	1,593	0.6	(35.1)	(41.7)
Evola Holdings	Yeast-based industrial biotechnology	1,539	0.6	6.3*	8.2*
Horizon Discovery	Customised cell lines to aid drug discovery	1,478	0.6	28.5	15.4
Barco	Designs and develops visualisation solutions	1,471	0.5	(4.7)	(14.4)
Peptidream	Biotech company	1,430	0.5	15.1*	6.8*
Power Integrations	Analogue integrated circuits	1,348	0.5	2.7	(7.8)
China Financial Services	SME Lending in China	1,325	0.5	87.7	68.6
Senomyx	Developer of additives to amplify certain      flavours in foods	1,293	0.5	(23.9)	(31.7)
Thin Film Electronics	Develops printed, rewritable memory media	1,237	0.5	37.9	23.8
Ricardo	Automotive engineer	1,143	0.4	28.8	15.7
Medgenics	Therapeutic protein delivery technology	1,133	0.4	(68.7)*	(51.5)*
Ilka	Discovery and development of materials for   mass market applications	1,124	0.4	(5.8)*	(7.9)*
Nanocarrier	Biotech company	1,094	0.4	(11.6)*	(17.9)*

 

Name	Business	Value £'000	% of total assets	Performance†
				Absolute %	Relative %
Infomart Corp	Internet platform for restaurant supplies	1,027	0.4	9.0*	9.7*
Just Dial	Offers a search engine to users throughout   India	993	0.4	(28.3)	(35.6)
Ceres Power Holding	Developer of fuel cell	985	0.4	20.1	7.9
Intralinks	Secure collaboration tools	980	0.4	18.2	6.2
Sarine Technologies	Systems for diamond grading and cutting	860	0.3	(29.7)	(36.9)
Codexis	Manufacturer of custom industrial enzymes	852	0.3	36.2*	32.3*
Suss Microtec	Fabrication and inspection equipment	784	0.3	8.2	(2.9)
Avacta Group	Analytical reagents and instrumentation	755	0.3	10.5	(0.8)
Oisix	Organic food website	724	0.3	(0.1)	(10.3)
Summit Corporation	Drug discovery and development	574	0.2	7.9	(3.1)
Velocys	Gas to liquid technology	550	0.2	(25.3)	(32.9)
C4X Discovery Holdings	Rational drug design and optimisation	538	0.2	(18.5)	(26.8)
Intelligent Energy Holding	Developer of modular fuel cells	466	0.2	(61.4)	(65.4)
Bioamber	Chemical company	443	0.2	16.3*	17.4*
Applied Graphene Materials	Manufactures graphene nanoplatelets	228	0.1	0.9	(9.4)
GI Dynamics	Develops and markets medical devices	104	0.0	(50.0)	(55.1)
China Lumena New Materials	Mines, processes and manufactures natural   thenardite products	0	0.0	(100.0)	(100.0)
Total equities		260,414	97.2
Net liquid assets		7,442	2.8
Total assets at fair value (before deduction of loans)		267,856	100.0

†      Absolute and relative performance has been calculated on a total return basis over the period 1 November 2014 to 30 April 2015. Absolute performance is in sterling terms; relative performance is against S&P Citigroup Global Small Cap Index (in sterling terms).

*      Figures relate to part-period returns where the equity has been purchased during the period.

Source: Baillie Gifford, StatPro.

Past performance is not a guide to future performance.

 

Distribution of total assets (unaudited)

Industry Analysis at 30 April 2015	% of total assets*		Portfolio Weightings (relative to comparative index†) at 30 April 2015 %
Biotechnology	15.2		12.4
Internet Software and Services	8.6		6.8
Internet and Catalogue Retail	8.2		7.7
Electronic Equipment, Instruments and Components	7.1		4.5
Software	6.6		3.9
Capital Markets	6.2		3.3
Semiconductors and Semiconductor Equipment	5.4		3.3
Pharmaceuticals	5.3		3.5
IT Services	3.7		1.6
Diversified Financial Services	3.4		2.2
Health Care Equipment and Supplies	3.1		1.1
Media	3.0		0.3
Professional Services	2.6		1.4
Automobiles	2.5		1.7
Life Sciences Tools and Services	2.5		2.3
Computers and Peripherals	2.4		1.9
Machinery	2.3		(2.0)
Chemicals	2.0		(1.4)
Health Care Technology	1.5		1.2
Electrical Equipment	1.3		(1.0)
Household Durables	1.3		0.2
Trading Companies and Distributors	1.2		(0.2)
Aerospace and Defence	1.1		(0.2)
Consumer Finance	0.5		(0.1)
Energy Equipment and Services	0.2		(1.0)
Net Liquid Assets	2.8
Total Assets	100.0
* Total assets before deduction of loans

† S&P Citigroup Global Small Cap Index. Weightings exclude industries where the Company has no exposure.

 

Distribution of total assets* (unaudited)

Geographical Analysis		30 April 2015 %		31 October 2014 %
Australasia		2.1		2.4
	Australia	1.2	1.6
	New Zealand	0.9	0.8
North America		40.3		47.0
	USA	40.3	45.2
	Canada	-	1.8
South America		-	0.5
	Mexico	-	0.5
Europe		42.6	34.9
	United Kingdom	26.9	22.8
	Eurozone	12.6	10.5
	Developed Europe (non euro)	3.1	1.6
Asia		12.2	10.9
	Japan	6.9	4.8
	China	3.3	2.4
	India	1.0	1.4
	Hong Kong	0.7	0.9
	Singapore	0.3	0.5
	Indonesia	-	0.9
Net Liquid Assets		2.8		4.3
Total Assets		100.0		100.0

Sectoral Analysis		30 April 2015 %		31 October 2014 %
	Consumer Discretionary	15.0		16.9
	Energy	0.2		0.3
	Financials	10.1		8.6
	Health Care	27.6		23.4
	Industrials	8.5		9.1
	Information Technology	33.8		35.7
	Materials	2.0		1.7
	Net Liquid Assets	2.8		4.3
Total Assets		100.0		100.0

* Total assets before deduction of loans

Notes to the condensed financial statements (unaudited)

1.	The condensed financial statements for the six months to 30 April 2015 have been prepared on the basis of the same accounting policies as set out in the Company's Annual Report and Financial Statements at 31 October 2014 and in accordance with the ASB's Statement 'Half-Yearly Financial Reports' and have not been audited or reviewed by the Auditors pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'. The Company's assets, the majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly. All borrowings require the prior approval of the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board on a regular basis. Accordingly the Half-Yearly Financial Report has been prepared on the going concern basis as it is the Directors' opinion that the Company will continue in operational existence for the foreseeable future.
2.	The financial information contained within this Half-Yearly Financial Report does not constitute statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial information for the year ended 31 October 2014 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The Auditor's Report on those accounts was not qualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.
3.	Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie Gifford & Co, has been appointed by the Company as its Alternative Investment Fund Manager and Company Secretary with effect from 1 July 2014. The investment management function has been delegated to Baillie Gifford & Co. The management agreement is terminable on not less than three months' notice. The annual management fee is 0.95% on the first £50m of net assets and 0.65% on the remaining net assets, calculated quarterly.
4.	Net return per ordinary share	Six months to 30 April 2015 £'000	Six months to 30 April 2014 £'000	Year to 31 October 2014 (audited) £'000
	Revenue return on ordinary activities after taxation	(153)	(24)	68
	Capital return on ordinary activities after taxation	31,370	(26,599)	(4,872)
	Total return	31,217	(26,623)	(4,804)
	Net return per ordinary share is based on the above totals of revenue and capital and on 49,004,319 ordinary shares, being the number of ordinary shares in issue during each period. There are no dilutive or potentially dilutive shares in issue.

 

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

5.	Dividends	Six months to 30 April 2015 £'000	Six months to 30 April 2014 £'000	Year to 31 October 2014 (audited) £'000
	Amounts recognised as distributions in the period:
	Previous year's final dividend of 1.50p (2013 - 1.50p), paid 5 February 2015	735	735	735
	Interim dividend for the year ended 31 October 2014 paid 17 July 2014	-	-	245
		735	735	980
	Paid and proposed in respect of the financial period:
	No interim dividend for the year ending 31 October 2015  (2014 - 0.50p)	-	245	245
	Final dividend (31 October 2014 - 1.50p)	-	-	735
		-	245	980
	No interim dividend has been declared.
6.	At 30 April 2014 creditors falling due within one year included borrowings of £29,044,000 drawn down under a three year fixed rate loan facility with National Australia Bank Limited which expired on 30 September 2014. The loans drawn down consisted of €11.4m, US$16.35m and £10.0m at that date.  The facility was replaced with a five year fixed rate facility with National Australia Bank Limited which expires on 30 September 2019 and which has drawings of €9.4m, US$25.6m and £7.5m at 30 April 2015 and 31 October 2014. The fair value of the bank loans at 30 April 2015 was £31,551,000 (30 April 2014 - £29,179,000; 31 October 2014 - £31,120,000).
7.	The Company has authority to buy back its ordinary shares. In the six months to 30 April 2015 no ordinary shares were bought back therefore the Company's authority remains unchanged at 7,345,747 ordinary shares.
8.	During the period the Company incurred transaction costs on purchases of investments of £18,000 (30 April 2014 - £351,000; 31 October 2014 - £358,000) and transaction costs on sales of £11,000 (30 April 2014 - £118,000; 31 October 2014 - £122,000).
9.	Principal Risks and Uncertainties The principal risks facing the Company relate to the Company's investment activities. These risks are market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk. An explanation of these risks and how they are managed is contained in note 19 of the Company's Annual Report and Financial Statements for the year to 31 October 2014. The principal risks and uncertainties have not changed since the publication of the Annual Report and Financial Statements which can be obtained free of charge from Baillie Gifford & Co and is available on the Edinburgh Worldwide page of the Managers' website: www.edinburghworldwide.co.uk‡. Other risks facing the Company include the following:
	¾    Regulatory Risk - the loss of investment trust status or a breach of the UKLA Listing Rules could have adverse financial consequences and cause reputational damage.

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

9.	Principal Risks and Uncertainties (continued)
	¾    Operational/Financial Risk - failure of service providers' accounting systems could lead to inaccurate reporting or financial loss.
	¾    Discount Volatility - the risk that the discount can widen.
	¾    Gearing Risk- the use of borrowing can magnify the impact of falling markets.
	¾    Small Company Risk - investment in smaller, immature companies is generally considered higher risk as changes in their share prices may be greater and the shares may be harder to sell. Smaller, immature companies may do less well in periods of unfavourable economic conditions. Further information can be found on pages 7 and 8 of the Annual Report and Financial Statements
10.	The Half-Yearly Financial Report will be available on www.edinburghworldwide.co.uk‡ and will be posted to shareholders on or around 15 June 2015.
‡      Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.
None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
- Ends -

 

END

 

 

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