Half-year Report

RNS Number : 5911B

Henderson Intl. Income Trust PLC

04 April 2017

 

HENDERSON INTERNATIONAL INCOME TRUST PLC

Unaudited results for the half-year ended 28 February 2017

This announcement contains regulated information

Investment objective

To provide a high and rising level of dividends as well as capital appreciation over the long-term from a focused and internationally diversified portfolio of securities outside the UK. 

 Performance highlights for the six months to 28 February 2017

•           The first interim dividend payment for the year ending 31 August 2017 of 1.20p per ordinary share was paid to shareholders on 28 February 2017. A second interim dividend payment for the year ending 31 August 2017 of 1.20p per ordinary share has been declared and will be paid to shareholders on 31 May 2017.

•           The net asset value per share as at 28 February 2017 was 151.9p compared to 121.9p as at 29 February 2016.

•           The discount as at 28 February 2017 was 0.6% compared to a premium of 0.2% as at 31 August 2016.

Total return performance (including dividends reinvested and excluding transaction costs)

	6 months %	1 year %	3 years %	Since launch %
NAV1	9.1	28.5	47.15	91.25
Sector average2	11.3	33.6	40.0	75.4
Benchmark3	14.0	37.6	63.4	112.9
Share price4	8.3	37.3	50.8	86.2

1 Calculated using published daily NAVs including current year revenue

2 The AIC Global Equity Income sector based on NAV

3 MSCI World (ex UK) Index (sterling adjusted)

4 Using mid-market share price

5 Incorporating the dilution resulting from the impact of the subscription shares which were exercised on

31 August 2014

Sources: AIC, Morningstar Direct, Henderson and Datastream

 

CHAIRMAN'S STATEMENT

Interim Management Report

Performance and markets

During the six months to 28 February 2017 the return on the net asset value ('NAV') per ordinary share (on a total return basis) was 9.1%. The Company's return on the ordinary share price (on the same basis) was 8.3%. In comparison, the Company's benchmark total return was 14.0% (MSCI World (ex UK) Index). This compares with a NAV total return of 91.2% and share price total return of 86.2% since launch.

Equity market returns have been very positive over the period. Economic growth has been more robust than expected and global growth expectations have been upgraded over the last six months. Of particular note were the better than expected Chinese growth, and a sharp pick up in commodity prices that have pushed back deflationary fear. It has been a period of considerable political change and uncertainty. The Italian referendum on constitutional reform resulted in a 'No' vote and a leadership change, the impact of Brexit on the United Kingdom and Europe remains unknown, and in the United States a new administration with radical policy proposals is in place.

Growth and corporate activity

The board is pleased to confirm that in the light of positive feedback from existing and potential new shareholders it has resolved to proceed with an issue of C shares. As in our previous C share issue, all shareholders will have the opportunity to participate in the issue. The issue will ensure that there is no material dilution to the net asset value per share for existing shareholders. The issue will be subject to the approval of shareholders at a general meeting to be convened in due course. The expected closing date for the C share issue is in early May 2017.

The Company remains unique as the only global income investment trust that invests exclusively outside the UK. The Company introduced a new management fee structure last year, which will see the ongoing charge fall year-on-year. A future increase in our share capital will benefit existing shareholders by reducing the ongoing charge further.

Earnings and dividends

The revenue return per ordinary share during the six months to 28 February 2017 was 1.65p. A fourth interim dividend of 1.20p per ordinary share, for the year ended 31 August 2016, was paid to shareholders on 30 November 2016, making a total dividend payment in respect of the year ended 31 August 2016 of 4.65p per ordinary share (year ended 31 August 2015: 4.50p per ordinary share).

The board declared a first interim dividend payment for the year ending 31 August 2017 of 1.20p per ordinary share that was paid to shareholders on 28 February 2017.  Subsequently, we have declared a second interim dividend of 1.20p per ordinary share which will be paid to shareholders on 31 May 2017. The board continues to monitor the level of dividend paid out to shareholders and aims to maintain the same level of dividend for the remaining six months of this financial year.

Gearing

Well-judged gearing enhances returns to shareholders. The board's current policy is to permit the Fund Manager to gear up to 25% of net assets at the time of drawdown or investment as appropriate. Borrowing limits for this purpose include implied gearing through the use of derivatives. The gearing at the period end was 1.5% (31 August 2016: Nil).

Discount control

The Company's share price has traded close to its NAV over the period. The board continues to monitor the premium/discount to NAV and will consider appropriate action if the relationship between the NAV and share price moves and remains out of line with the Company's peer group. However, there is a distinct limit to the board's ability to influence the premium or discount to NAV. Accordingly we believe it is not in shareholders' interests to have a specific issuance or buy-back policy. We believe it sensible to retain flexibility; accordingly we shall consider issuance and/or buy-backs where appropriate and subject to market conditions.

Outlook

Economic growth has been improving around the world. Unemployment continues to fall in most major economies. Monetary policy in general remains focused on stimulating growth. Against this, the political landscape remains as uncertain as ever after an extraordinary year.

In these circumstances international diversification has a significant role to play in portfolio design. The board believes that the Company's mandate provides our Manager with the essential flexibility to adapt to the circumstances of the day and to position our portfolio in the light of their interpretation of them. The Manager is confident that the Company's portfolio has the ability to benefit from short-term volatilities and to deliver steady growth in dividend income and the potential to grow investors' capital in coming years. 

Christopher Jonas, CBE

Chairman

4 April 2017

 

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

• Investment activity and performance risks;

• Portfolio and market price risks;

• Tax and regulatory risks; and

• Operational risks.

Information on these risks and how they are managed is given in the annual report to 31 August 2016. In the view of the board, these principal risks and uncertainties were unchanged over the last six months and are as applicable to the remaining six months of the financial year as they were to the six months under review.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors confirm that, to the best of their knowledge:
(a)	the financial statements for the half-year ended 28 February 2017 have been prepared in accordance with 'FRS 104 Interim Financial Reporting';
(b)	the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
(c)	the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

For and on behalf of the board

Christopher Jonas, CBE

Chairman

4 April 2017

 

FUND MANAGER'S REPORT

Performance review

The portfolio produced positive returns over the period, generating a total return of 9.1% in net asset value ('NAV') per ordinary share, including the dividends of 2.40p per share, which increased by 4.3% as compared to the same period in 2016.

The Company's investment process focuses on companies with attractive dividend yields, strong cash flow generation, and the potential to grow both earnings and distributions in the future. Income generation from the portfolio during the period has remained robust. The majority of companies in the portfolio have increased or maintained their dividends. The dividend growth has been widely spread across sectors and regions. Examples of large increases in dividend pay-outs include technology company Samsung (36% increase year-on-year), telecommunications companies HKT (23%) and Orange (8%), and soft drink distributor Coca-Cola European Partners (23%). The outlook for dividend growth remains good.

The portfolio has generated strong capital returns over the period, but it has lagged the MSCI World (ex-UK) Index. The team's investment process is driven by stock selection, based on fundamental qualitative analysis and a strong valuation discipline. The team's objective is to provide investors with an attractive, rising level of dividends and capital appreciation over the long term. The dividend growth from the portfolio has been excellent over the period, but with the benefit of hindsight we have been cautiously optimistic on the outlook at a time when outright optimism would have been more rewarding. The market has moved quickly to factor in a significant pick up in global growth.

Over the period under review the strongest performing region has been the United States. The surprise election of Donald Trump on a platform of measures to promote domestic growth has been taken positively by markets. As yet the exact policies by which the administration means to achieve their aims are vague. The strongest performers across all regions have included financial services companies. Significant contributors to performance included private equity firm Blackstone, business development company Ares Capital, JPMorgan, and European banks Natixis and ING Groep. The portfolio has significant weights in the telecommunications and real estate sectors, mainly in Asia-Pacific and Europe. These have performed well in recent years, but have underperformed the market over this period as investors have rotated their portfolios towards more economically sensitive stocks. We have maintained our exposure as the holdings are delivering high dividend yields and remain attractively valued.

Portfolio positioning

The geographic weightings of the portfolio have not changed significantly over the period, and gearing remains low. Profits were taken in a number of long held positions after several years of strong performance in order to invest in new opportunities; positions closed include Chinese internet gaming company Netease, logistics company UPS, and US theme park operator Six Flags. Markets have risen considerably since the Company was launched but there are still a great number of interesting investment opportunities. Slow sales growth continues to encourage companies to focus on improving earnings and returns on capital via management action. New positions opened included industrial engineer Siemens, Netherlands private bank Van Lanschot, and US retailer Best Buy, all of which have turnaround plans in place.

Ben Lofthouse

Fund Manager

4 April 2017

 

INVESTMENT PORTFOLIO

at 28 February 2017

Company	Country	Market value £'000	% of portfolio
Basic materials
Bayer	Germany	5,339	2.2
		5,339	2.2
Consumer goods
Coca-Cola	US	5,791	2.4
Samsung	Korea	4,482	1.9
Coca-Cola European Partners	US	4,348	1.8
General Motors	US	3,721	1.5
Toyota	Japan	3,488	1.5
Anta Sports	China	3,165	1.3
Panasonic	Japan	2,698	1.1
Zhengzhou Yutong	China	2,234	0.9
Hanesbrands	US	1,761	0.7
		31,688	13.1
Consumer services
Nielsen	US	4,472	1.8
Las Vegas Sands	US	3,950	1.6
NOS	Portugal	3,576	1.5
Fairfax	Australia	3,136	1.3
Best Buy	US	2,553	1.1
		17,687	7.3
Financials
Wells Fargo	US	5,971	2.5
Natixis	France	5,548	2.3
ING Groep	Netherlands	4,390	1.8
AXA	France	3,701	1.5
Macquarie	Australia	3,661	1.5
Bank of China	China	3,457	1.4
Nordea Bank	Sweden	3,213	1.3
Van Lanschot	Netherlands	2,969	1.2
JPMorgan Chase	US	2,459	1.0
Ares Capital	US	2,410	1.0
Synchrony Financial	US	2,383	1.0
Blackstone	US	2,283	1.0
Deutsche Boerse	Germany	2,283	1.0
		44,728	18.5
Health care
Novartis	Switzerland	8,120	3.3
Roche	Switzerland	7,710	3.2
Pfizer	US	4,762	2.0
		20,592	8.5
Industrials
Siemens	Germany	5,167	2.2
Amcor	Australia	3,197	1.3
Jiangsu Expressway	China	2,973	1.2
Deutsche Post	Germany	2,533	1.1
Lockheed Martin	US	2,450	1.0
General Electric	US	2,210	0.9
		18,530	7.7

Oil & gas
Chevron	US	6,262	2.6
Statoil	Norway	4,006	1.6
Total	France	3,590	1.5
Star Petroleum Refining	Thailand	3,146	1.3
		17,004	7.0
Property
Icade	France	4,816	2.0
Eurocommercial	Netherlands	3,515	1.4
Scentre	Australia	3,039	1.3
Iron Mountain	US	2,646	1.1
Crown Castle	US	2,584	1.1
Nexity	France	2,102	0.9
Mapletree Greater China	Singapore	2,027	0.8
		20,729	8.6
Technology
Microsoft	US	8,554	3.6
Taiwan Semiconductor Manufacturing	Taiwan	6,485	2.7
Cisco Systems	US	6,194	2.6
HP Inc	US	2,818	1.2
		24,051	10.1
Telecommunications
Deutsche Telekom	Germany	5,935	2.4
Orange	France	5,716	2.4
Telenor	Norway	4,754	2.0
Bezeq The Israeli Telecommunication Corporation	Israel	4,343	1.8
Verizon Communications	US	3,385	1.4
HKT Trust and HKT Ltd	Hong Kong	3,335	1.4
Spark New Zealand	New Zealand	3,243	1.3
SK Telecom	Korea	2,872	1.2
China Mobile	China	2,437	1.0
		36,020	14.9
Utilities
Enel	Italy	3,085	1.3
Korea Electric Power	Korea	2,006	0.8
		5,091	2.1
Total investments		241,459	100.0

                       

Sector exposure as a percentage of the investment portfolio excluding cash

	28 February 2017 %	31 August 2016 %
Financials	18.5	19.6
Telecommunications	14.9	16.5
Consumer goods	13.1	3.3
Technology	10.1	9.8
Property	8.6	9.9
Health care	8.5	12.9
Industrials	7.7	10.8
Consumer services	7.3	8.1
Oil & gas	7.0	4.9
Basic materials	2.2	1.9
Utilities	2.1	2.3
	100.0	100.0

Geographic exposure as a percentage of the investment portfolio excluding cash

	28 February 2017 %	31 August 2016 %
US	34.9	34.4
France	10.6	14.5
Germany	8.9	7.8
Switzerland	6.5	8.6
China	5.8	6.0
Australia	5.4	5.9
Netherlands	4.4	4.4
Korea	3.9	2.4
Norway	3.6	2.3
Taiwan	2.7	2.7
Japan	2.6	1.1
Israel	1.8	1.9
Portugal	1.5	1.7
Hong Kong	1.4	2.5
New Zealand	1.3	1.6
Italy	1.3	-
Thailand	1.3	1.2
Sweden	1.3	-
Singapore	0.8	1.0
	100.0	100.0

Source: Henderson

CONDENSED INCOME STATEMENT
	(Unaudited) Half-year ended 28 February 2017				(Unaudited) Half-year ended 29 February 2016			(Audited) Year ended 31 August 2016
	Revenue  return £'000	Capital return  £'000		Total £'000	Revenue  return £'000	Capital return  £'000	Total £'000	Revenue  return £'000	Capital return  £'000	Total £'000
Gains on investments held at fair value through profit or loss	-	18,071		18,071	-	6,189	6,189	-	31,899	31,899
Income from investments held at fair value through profit or loss	3,217	-		3,217	2,062	-	2,062	7,684	-	7,684
(Loss) on foreign exchange	-	(23)		(23)	-	(401)	(401)	-	(50)	(50)
Other income	176	-		176	97	-	97	325	-	325
Gross revenue and capital gains	3,393	18,048		21,441	2,159	5,788	7,947	8,009	31,849	39,858
Management fee (note 3)	(188)	(564)		(752)	(90)	(271)	(361)	(244)	(731)	(975)
Other administrative expenses	(258)	-		(258)	(168)	(318)	(486)	(395)	-	(395)
Net return before finance costs and taxation	2,947	17,484		20,431	1,901	5,199	7,100	7,370	31,118	38,488
Finance costs	(5)	(16)		(21)	(9)	(27)	(36)	(49)	(58)	(107)
Net return on ordinary  activities before taxation	2,942	17,468		20,410	1,892	5,172	7,064	7,321	31,060	38,381
Taxation on net return on ordinary activities	(363)	-		(363)	(228)	-	(228)	(800)	(11)	(811)
Net return on ordinary activities after taxation (note 5)	2,579	17,468		20,047	1,664	5,172	6,836	6,521	31,049	37,570
Return per ordinary share	1.65p	11.16p		12.81p	2.08p	6.47p	8.55p	6.12p	29.14p	35.26p

The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity.

All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

The accompanying notes are an integral part of the condensed financial statements.

 

CONDENSED STATEMENT OF CHANGES IN EQUITY

Half-year ended 28 February 2017 (unaudited)	Called up share capital £'000	Share premium account £'000	Special reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 31 August 2016	1,561	131,328	45,732	37,915	4,368	220,904
New shares allotted (note 9)	5	678	-	-	-	683
Issue costs	-	(4)	-	-	-	(4)
Net return on ordinary activities after taxation	-	-	-	17,468	2,579	20,047
Dividends paid (note 6)	-	-	-	-	(3,758)	(3,758)
As at 28 February 2017	1,566	132,002	45,732	55,383	3,189	237,872

Half-year ended 29 February 2016 (unaudited)	Called up share capital £'000	Share premium account £'000	Special reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 31 August 2015	793	35,796	45,732	6,866	2,407	91,594
New shares allotted (note 9)	10	1,192	-	-	-	1,202
Issue costs	-	(5)	-	-	-	(5)
Net return on ordinary activities after taxation	-	-	-	5,172	1,664	6,836
Dividends paid (note 6)	-	-	-	-	(1,844)	(1,844)
As at 29 February 2016	803	36,983	45,732	12,038	2,227	97,783

Year ended 31 August 2016 (audited)	Called up share capital £'000	Share premium account £'000	Special reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 31 August 2015	793	35,796	45,732	6,866	2,407	91,594
New shares allotted (note 9)	768	95,933	-	-	-	96,701
Issue costs	-	(401)	-	-	-	(401)
Net return for the year	-	-	-	31,049	6,521	37,570
Dividends paid	-	-	-	-	(4,560)	(4,560)
As at 31 August 2016	1,561	131,328	45,732	37,915	4,368	220,904

The accompanying notes are an integral part of the financial statements.

 

CONDENSED STATEMENT OF FINANCIAL POSITION

	(Unaudited) As at 28 February 2017 £'000	(Unaudited) As at 29 February 2016 £'000	(Audited) As at 31 August 2016 £'000
Investments held at fair value through profit or loss (note 4)
Fixed asset investments held at fair value through profit or loss	241,459	107,164	214,168
Current assets
Debtors	838	523	831
Cash at bank	815	-	12,183
	1,653	523	13,014
Creditors: amounts falling due within one year	(5,240)	(9,904)	(6,278)
Net current liabilities	(3,587)	(9,381)	6,736
Total net assets	237,872	97,783	220,904
Capital and reserves
Called up share capital (note 9)	1,566	803	1,561
Share premium account	132,002	36,983	131,328
Special reserve	45,732	45,732	45,732
Other capital reserves	55,383	12,038	37,915
Revenue reserve	3,189	2,227	4,368
Total shareholders' funds	237,872	97,783	220,904
Net asset value per ordinary share - basic and diluted (note 7)	151.9p	121.9p	141.5p

The accompanying notes are an integral part of the financial statements.

 

CONDENSED STATEMENT OF CASH FLOWS

	(Unaudited) Half-year ended 28 February 2017 £'000	(Unaudited) Half-year ended 29 February 2016 £'000	(Audited) Year ended 31 August 2016 £'000
Cash flows from operating activities
Net return on ordinary activities before taxation	20,410	7,064	38,381
Add back: finance costs	21	36	107
Less: gains on investments held at fair value through profit or loss	(18,071)	(6,189)	(31,899)
Add: loss on foreign exchange	23	401	50
Withholding tax on dividends deducted at source	(363)	(228)	(1,136)
Taxation recovered	23	34	193
Increase in debtors	(30)	(167)	(291)
(Decrease)/increase in creditors	(363)	422	463
Net cash inflow from operating activities	1,650	1,373	5,868
Cash flows from investing activities
Purchase of investments	(64,246)	(24,563)	(139,050)
Sale of investments	55,026	21,130	148,976
Net cash (outflow)/inflow from investing activities	(9,220)	(3,433)	9,926
Cash flows from financing activities
Equity dividends paid (net of refund of unclaimed distributions and reclaimed distributions)	(3,758)	(1,844)	(4,560)
Proceeds from issue of ordinary shares	679	1,197	1,618
Interest paid	(21)	(32)	(107)
Net cash outflow from financing activities	(3,100)	(679)	(3,049)
Net (decrease)/increase in cash and cash equivalents	(10,670)	(2,739)	12,745
Cash and cash equivalents at start of year	6,657	(6,030)	(6,030)
Effect of foreign exchange rates	(23)	(409)	(58)
Cash and cash equivalents at end of year	(4,036)	(9,178)	6,657
Comprising:
Cash at bank	815	-	12,183
Bank overdraft	(4,851)	(9,178)	(5,526)
	(4,036)	(9,178)	6,657

The accompanying notes are an integral part of the financial statements.

 

NOTES TO THE FINANCIAL STATEMENTS

The half-year financial statements cover the period from 1 September 2016 to 28 February 2017 and have

not been audited or reviewed by the Company's auditor.

1.	Principal activity
	The Company is an investment company as defined in section 833 of the Companies Act 2006 and operates as an investment trust in accordance with section 1158 of the Corporation Tax Act 2010.
2.	Accounting policies - basis of preparation The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, issued in March 2015, the revised reporting standard for half-year reporting that was issued following the introduction of FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, which is effective for periods commencing on or after 1 January 2015. The Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", in accordance with which the Company's financial statements are also prepared, was reissued by the Association of Investment Companies in November 2014 and updated in January 2017 with consequential amendments. The condensed set of financial statements has been neither audited nor reviewed by the Company's auditor.
3.	Management fee The management fee is payable quarterly in arrears at the rate of 0.65% per annum of the Company's net assets up to £250 million and the rate reduces to 0.60% per annum of net assets in excess of £250 million (2016: quarterly in arrears at the rate of 0.65% per annum of the Company's net asset value). In accordance with the directors' policy on the allocation of expenses between income and capital, in each financial year 75% of the management fee payable is charged to capital and the remaining 25% to income.
4.	Investments held at fair value through profit or loss The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on the valuation techniques used and are defined as follows under FRS 102: Level 1: Valued using quoted prices in active markets for identical assets. Level 2: Valued by reference to valuation techniques using observable inputs other than quoted prices included in level 1. Level 3: Valued by reference to valuation techniques using inputs that are not based on observable market data. Financial assets at fair value through profit or loss at 28 February 2017 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Equity investments 241,459          -            -   241,459 Traded option contracts             -          (40)          -             (40) Total financial assets carried at fair value 241,459        (40)          -   241,419 Financial assets at fair value through profit or loss at 29 February 2016 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Equity investments 107,164          -            -   107,164 Total financial assets carried at fair value 107,164          -          -   107,164 Financial assets at fair value through profit or loss at 31 August 2016 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Equity investments 214,168          -            -   214,168 Traded option contracts             -          (77)     -             (77) Total financial assets carried at fair value 214,168        (77)          -   214,091 The Company has early adopted the amendments to FRS 102 in respect of fair value hierarchy disclosures as published in March 2016, which is applicable to accounting periods beginning on or after 1 January 2017 with earlier adoption being permitted. There have been no transfers between levels of the fair value hierarchy during the period.
5.	Return per ordinary share
	(Unaudited) Half-year ended 28 February 2017 £'000 (Unaudited) Half-year ended 29 February 2016 £'000 (Audited) Year ended 31 August 2016 £'000 The return per ordinary share is based on the following figures: Revenue return 2,579 1,664 6,521 Capital return 17,468 5,172 31,049 Total 20,047 6,836 37,570 Weighted average number of ordinary shares in issue for each period 156,490,689 79,993,665 106,540,906 Revenue return per ordinary share 1.65p 2.08p 6.12p Capital return per ordinary share 11.16p 6.47p 29.14p Total return per ordinary share 12.81p 8.55p 35.26p

       The Company does not have any dilutive securities, therefore, the basic and diluted returns per share are

       the same.

6.	Dividends
		£'000
	Fourth interim dividend of 1.20p for the year ended 31 August 2016 (paid 30 November 2016)	1,879
	First interim dividend of 1.20p for the year ending 31 August 2017 (paid 28 February 2017)	1,879
	Total	3,758
	The board has declared a second interim dividend of 1.20p per ordinary share to be paid on 31 May 2017 to shareholders registered at the close of business on 28 April 2017. The shares will be quoted ex-dividend on 27 April 2017.
7.	Net asset value per ordinary share The net asset value per ordinary share as at 28 February 2017 is calculated on the net assets attributable to shareholders funds of £237,872,000 (29 February 2016: £97,783,000; 31 August 2016: £220,904,000) and on 156,555,606 ordinary shares in issue as at 28 February 2017 (29 February 2016: 80,246,550; 31 August 2016: 156,080,606).

8.	Bank overdraft
	At 28 February 2017, the Company had an overdraft with HSBC of £4,851,000 (29 February 2016: £9,178,000; 31 August 2016: £5,526,000).

9.	Called up share capital
		Number of shares in issue	Nominal value £'000
	Ordinary shares of 1p each
	In issue at start of year	156,080,606	1,561
	Allotment of new shares in the period	475,000	5
	As at 28 February 2017	156,555,606	1,566
	During the half-year to 28 February 2017 the Company issued 475,000 ordinary shares for a total consideration of £679,000 (29 February 2016: £1,197,000; 31 August 2016: £96,300,000) after deduction of issue costs.
10.	Related party transactions The Company's current related parties are its directors and Henderson. There have been no material transactions between the Company and its directors during the period. The only amounts paid to them were in respect of expenses and remuneration for which there were no outstanding amounts payable at the period end. In relation to the provision of services by Henderson (other than fees payable by the Company in the ordinary course of business and the provision of marketing services) there have been no material transactions with Henderson affecting the financial position of the Company during the period under review.

11.	Going concern The assets of the Company consist of securities that are readily realisable and, accordingly, the directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.
12.	Comparative information
	The financial information contained in this half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The figures and financial information for the year ended 31 August 2016 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the independent auditor, which was unqualified and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006.
13.	Half-year report
	The half-year report will shortly be available on the Company's website (www.hendersoninternationalincometrust.com) or in hard copy from the Company's registered office. An abbreviated version of this half-year report, the 'update', will be circulated to shareholders in mid-April 2017.
14.	General information Company status The Company is a UK domiciled investment trust company. London Stock Exchange Daily Official List (SEDOL)/ISIN is B3PHCS8/GB00B3PHC586 Global Intermediary Identification Number (GIIN) is WRGF5X.99999.SL.826 Legal Entity Identifier (LEI) is 2138006N35XWGK2YUK38 Registered office 201 Bishopsgate, London EC2M 3AE Company registration number 7549407 Directors The directors of the Company are Christopher Jonas, CBE (Chairman), Simon Jeffreys (Chairman of the Audit Committee), William Eason, Richard Hills and Aidan Lisser. Corporate Secretary Henderson Secretarial Services Limited, represented by Wendy King, FCIS. Website Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersoninternationalincometrust.com

For more information please contact:

Ben Lofthouse Fund Manager Henderson International Income Trust plc Telephone: [phone]
James de Sausmarez Director and Head of Investment Trusts Henderson Global Investors Telephone: [phone]	Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

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

 

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