Annual Financial Report

RNS Number : 3717C

Henderson Opportunities Trust PLC

07 February 2020

 

HENDERSON INVESTMENT FUNDS LIMITED

HENDERSON OPPORTUNITIES TRUST PLC

LEGAL ENTITY INDENTIFIER (LEI):  2138005D884NPGHFQS77

7 February 2020

HENDERSON OPPORTUNITIES TRUST PLC

Annual Financial Report for the year ended 31 October 2019

This announcement contains regulated information

Investment Objective

The Company aims to achieve capital growth in excess of the FTSE All-Share Index from a portfolio of UK investments.

PERFORMANCE HIGHLIGHTS

Total Return Performance to 31 October 2019

	1 year %	3 years %	5 years %	10 years %
NAV¹	0.2	22.6	40.0	210.6
Share price²	-3.7	20.6	18.7	211.5
Sector Average NAV³	5.1	21.6	38.7	172.2
Benchmark4	6.8	19.3	37.9	122.0

	Year ended 31 October 2019	Year ended 31 October 2018
NAV per share at year end	1,161.8p	1,179.4p
Total return per share	1.0p	-70.0p
Share price at year end	932.0p	990.0p
Net assets	£91.8m	£94.4m
Discount at year end	19.8%	16.1%
Ongoing charge5	0.91%	0.84%
Dividend for year6	26.0p	21.0p
Dividend yield7	2.6%	2.1%

1 Net Asset Value (NAV) per ordinary share total return with income reinvested

2 Share price total return using mid-market closing price with income reinvested

3 Average NAV of the AIC UK All Companies Sector with income reinvested

4 FTSE All-Share Index total return

5 Ongoing charge excludes performance fee. Ongoing charge including performance fee is 0.91% (2018: 0.84%) as no performance fee was paid during the year. The increase was largely attributable to increased marketing/shareholder engagement expenses

6 This represents an interim dividend of 7.0p and a proposed final dividend of 19.0p. See the Annual Report for more details

7 Based on the ordinary dividends paid and payable for the year and the mid-market closing price at the year end

A glossary of terms and Alternative Performance Measures can be found in the Annual Report

Sources: Morningstar for the AIC, Janus Henderson, Refinitiv Datastream

 

CHAIRMAN'S STATEMENT

Performance review

It was a difficult financial year for smaller companies and performance in absolute terms was disappointing relative to the benchmark. The Company's net asset value rose 0.2% on a total return basis while the FTSE All-Share Index rose 6.8%. However, the Company has outperformed the benchmark (on NAV total return) over three, five and ten years, as detailed in the table below:

	1 year (%)	3 year (%)	5 year (%)	10 year (%)
NAV Total Return	0.2	22.6	40.0	210.6
Share Price Total Return	-3.7	20.6	18.7	211.5
FTSE All-Share Total Return	6.8	19.3	37.9	122.0

Over the long term the best performers in the portfolio have tended to be small companies, with the largest successes being those that make the transition from small company up to the FTSE 100 (such as engineering software company Aveva which recently entered the FTSE 100). However, this financial year there was a significant dislocation between small company performance and the rest of the UK market - while the FTSE 100 rose 6.5% and the FTSE 250 rose 9.1%, the AIM All-Share Index fell 7.5% and the FTSE SmallCap Index finished approximately flat (-0.2%). This detracted from performance given the Company's substantial weighting in small and AIM quoted companies. This scale of divergence between small and medium sized company performance is unusual, and the Fund Managers go into the reasons for this in more detail in their report.

Another feature during the year was the widening in the discount level from 16.1% as at the previous year end to 19.8% at the end of this financial year. The Board recognises the primary route to discount reduction is strong performance. However, there are also other levers that fall within the Board's immediate control such as improved engagement with retail investors, using share buybacks selectively to enhance net asset value and increasing the attractiveness of the Company for income purposes. This year the dividend has been increased materially (by 24.0%) and next year we will move to a quarterly dividend payment structure, as described in more detail below.  The dividend over the last 5 years has increased 15.8% compound annual growth rate per year.

Earnings and dividends

The revenue return was 29.9p compared to 20.2p last year. This notable increase was partly as a result of a high level of stock lending income, which totalled £373,000 during the financial year (2018: £49,000), contributing approximately 4.7p per share of income. Investment income also rose 21.0% year on year (including special dividends), helped by significant special dividends from holdings including IAG and RBS.

Despite the difficult year we are pleased to announce, subject to shareholder approval, a final dividend of 19.0p per share, resulting in a full year dividend of 26.0p, a 24.0% increase on the 21.0p paid last year. This has resulted in a further £312,000 being added to the revenue reserve, taking the total to £1.9m following payment of the final dividend.

The Board has decided, from the beginning of the 2020 financial year, to pay quarterly dividends to shareholders. We intend to make dividends as predictable for shareholders as possible and, in the absence of any adverse changes in conditions, expect to be able to declare quarterly dividends as follows:

	Dividend Rate	Payment Date
Q1 2020	6.5p to be confirmed in March 2020	June 2020
Half Year 2020	6.5p to be confirmed in June 2020	September 2020
Q3 2020	6.5p to be confirmed in September 2020	December 2020
Final 2020	7.5p to be confirmed in January / February 2021	March 2021
Anticipated total	27.0p

Fees and expenses

The disappointing results this year mean there is no performance fee payable. The combined management and performance fees are capped at 1.5% of average net assets (calculated quarterly) during the year. This year the ongoing charge was 0.91% (2018: 0.84%), the increase was largely attributable to increased marketing/shareholder engagement expenses.

Continuation vote

Following a three year cycle, there will be a continuation vote at this year's AGM on 19 March 2020. The NAV total return for the last three financial years is up 22.6%, while the FTSE All-Share total return is up 20.6%. The dividends over the three years have increased 28.9%. The valuations of the stocks in the portfolio are undemanding and the earnings growth prospects are strong. The UK economy is coming through a period of change and a renewal of confidence could lead to robust economic growth. The Directors recommend a vote in favour of continuation. The Directors and the Fund Managers will be voting their shares accordingly. If shareholders vote in favour of continuation the next vote will be in March 2023.

Buybacks and share issuance

99,670 shares were bought back during the financial year. These were purchased at between a 14.6% and 17.7% discount to cum income NAV. A further 2,813 shares were bought following the financial year end at between an 18.3% and 18.6% discount to cum income NAV.

It is the view of the Board and the Fund Managers that share buybacks may be used when there is a combination of a high discount to net asset value and a clear valuation opportunity within the portfolio. Following weak periods for small company performance, as was the case in December 2018, January 2019 and November 2019, buybacks were carried out. The Board intends to continue to use buybacks opportunistically in this manner.

Gearing

Gearing at the end of the year was 12.7%, an increase on the previous year end of 6.7%. As the Fund Managers cover in more detail in the Fund Managers' report, gearing was increased in the fourth quarter of 2018 and early 2019 to take advantage of valuation opportunities in what was a very weak period for UK small company performance.

It is a distinct advantage to have the ability to use low cost gearing, and it will be deployed in most circumstances. The level of gearing will not depend on a top down view of where we are in the economic cycle but rather on valuation levels and the conviction of the Fund Managers in individual stocks. The current level of gearing reflects the Fund Managers' view that there is unrecognised value in the portfolio.

The Board

Max King, who has served on the Board for 14 years, will retire with effect from the conclusion of the AGM in March 2020. Max has contributed a wealth of investment experience and his input into the management of the Company on behalf of shareholders has been greatly appreciated.

We are very pleased to have appointed Davina Curling to the Board with effect from 1 November 2019. Davina has over 25 years of fund manager experience and is currently a director of Invesco Income Growth Trust plc and BlackRock Greater Europe Investment Trust plc. Davina will stand for appointment at the AGM in March 2020.

AGM

Our Annual General Meeting will be held at 2.30pm on 19 March 2020 at the registered office, 201 Bishopsgate, London EC2M 3AE. The Notice of Meeting accompanies the Annual Report. The Directors will vote their own shareholdings in favour of all the resolutions to be put to the AGM and the Directors recommend that the shareholders support all the resolutions.

In addition to the formal business of the meeting, the Fund Managers, James Henderson and Laura Foll, will give a presentation, following which tea will be served.

Outlook

The General Election in December brought greater clarity in regard to the domestic political outlook and this has been well received by investors with UK focused stocks being the main beneficiaries. The improved market context has been strongly reflected in the portfolio with the NAV (total return) rising by 9.3% in the current financial year to 31 December and the share price increasing by 19.1%, whilst our benchmark, the FTSE All-Share Index, rose by only 5.6% during these two months.

The Board and the Fund Managers anticipate that markets will always face headwinds of varying degrees and accordingly prefer to invest in management teams capable of growing their businesses by dealing with problems that emerge. In our view the portfolio companies offer products and services that should deliver growth, whilst in many cases valuations do not fully reflect their prospects. The start to the current financial year has been encouraging with SmallCap valuations showing improvement and, if this trend continues, your Company's portfolio should benefit significantly.

Peter Jones

Chairman

7 February 2020

 

FUND MANAGERS' REPORT

Investment backdrop

The UK economy has been growing at a very modest rate. Capital spending is running at low levels. This is not an easy background for investment. Sales growth and investment in new capital lies behind profit growth. Therefore there have been a larger than usual number of profit disappointments from UK smaller companies. The reaction these sometimes modest profit downgrades have met in share price terms has often been severe, with the share price falling a considerable amount. This is a result of general shareholder nervousness.

The companies that worried shareholders like to hold are predictable businesses with very solid profiles that they believe will have no operational problems. Companies that are thought to have these attributes have moved onto very high valuations while those that are thought to be in any way challenged have seen their valuations fall. The problem with this approach is that in a fast moving world the business model that works well today can easily be out of date in the near future. The life cycle of companies is getting shorter as early strong growth can give way to maturity and decline faster than in the past. The speed of information flow exposes companies to faster, often global, competition. Very few have 'a moat' round them and this is why there are inherent dangers in investing in high valuation companies. However, over the last year it has been the high valuation stocks that have performed the best. When economic growth picks up and some confidence returns, the valuation gap between highly rated shares and much cheaper shares may contract.

Portfolio review

The portfolio is divided into the seven classifications below. These classifications are not meant to be prescriptive (they are, to a degree, subjective). The aim is to ensure the portfolio remains diverse. Different classifications will perform well in different market environments.

This is the second year in which we have reported the portfolio in this manner to shareholders. The most notable changes since the breakdown of the portfolio last year are the increased weight in the recovery area (from 8% of the portfolio last year to 10% this year) and the lower weight in growth small cap (from 32% of the portfolio to 20%). The increase in recovery weighting is an active decision - new positions have been added including retail property company Hammerson and healthcare and industrial tape manufacturer Scapa. It is our view that some companies that are currently 'out of favour' are presenting compelling valuation opportunities, so there has been a deliberate modest increase in investment in that area. The decline in the 'growth small cap' weighting has come about for a mixture of active and passive reasons - there has been one material sale in the area (Keyword Studios, which has been exited) and there has also been a de-rating of one of the largest holdings, software company Blue Prism.

Classification	Total (gross assets) %	Indicative portfolio range %	Top 3 holdings
Large cap (£1b+ market cap) These stocks are usually familiar to all investors. They are ballast for the portfolio but as individual companies we believe they remain long term growth opportunities that are genuinely good in their operations.	21	10 - 30	HSBC Johnson Matthey GlaxoSmithKline
Growth small cap Quality companies, however earlier stage than the 'small & mid cap compounders' with a correspondingly higher growth rate.	20	20 - 40	Zoo Digital Learning Technologies Blue Prism
Recovery Companies viewed as contrarian value opportunities.	10	0 - 20	Vertu Motors Hammerson Redde
Natural resources Exposure to cyclical stocks adding diversity to the portfolio. Positioning depends on valuation opportunities and the commodity cycle.	10	5 - 15	Serica Energy Rio Tinto Eland Oil & Gas
Early stage companies / university spin-outs Early-stage companies and prospects largely uncorrelated to wider market moves.	7	0 - 20	4D Pharma Ceres Power Surface Transforms
Small & mid cap compounders These are the quality long term holds. We believe that they are long term compounders which over time will grow into larger companies.	31	20 - 40	RWS Tracsis Springfield Properties
Special Situations One-off investments with a specific catalyst.	1	0 - 10	Redcentric

Source: Janus Henderson at 31 October 2019

Income

While the capital performance during the year was disappointing, the income received from the portfolio was encouraging, with investment income (including special dividends) rising 21.0%. In our view this demonstrates both the underlying value within the portfolio and also management confidence in the outlook for their businesses. In addition, stock-lending generated an exceptional £373,000, compared with just £49,000 last year.

Portfolio activity

We were active during the year, adding 19 new positions and selling out completely in 16. There was also one additional holding (M&G) inherited via a spin-out from the position in Prudential. This meant that as at 31 October 2019 there were 89 holdings in the portfolio (excluding those with nil value), compared to 85 at the previous year end.

The gearing level rose as purchases totalling £27.2m more than offset sales of £23.4m. This meant that gearing at year end was 12.7%, notably higher than 6.7% at the end of October 2018. This increase took place primarily in the fourth quarter of 2018 and at the beginning of 2019, as a 22% fall in the AIM Index resulted in a number of interesting valuation opportunities.

The gearing level within the portfolio is determined not by a view on macroeconomics but rather by a view on the valuation opportunities available. The low teens level of gearing at year end demonstrates that we think there is considerable value to be found currently in UK companies.

Purchases

The largest five purchases during the year were:

• GlaxoSmithKline (new position) Under a new management team, the company is re-focusing its pharmaceutical division on research & development, a change that is already showing some promising (if early stage) results. Aside from the pharmaceutical division there is the world's largest consumer health business and a fast growing vaccine business.
   
• Springfield Properties A small Scottish housebuilder that builds both private and affordable housing. It trades at a significant valuation discount to the broader housebuilding sector despite faster sales and earnings growth.
   
• Sigmaroc A heavy building materials company with a 'roll up' strategy of growth via selective acquisitions. The management team are experienced in the sector and are targeting companies with a high market share in their geographies and good asset backing. The valuation remains modest and the quality of assets and the management team are, in our view, underappreciated.
   
• Hammerson (new position) A retail property company with assets in the UK and continental Europe. While the retail property sector remains under pressure, Hammerson had de-rated substantially and at the time of purchase it was trading at a discount of over 50% to its NAV. Hammerson has good quality shopping centre assets, including those such as Bicester Village (in which it has a minority stake), where the shopping experience cannot be replicated online. These high quality assets will remain attractive to brands to showcase their products. In our view, the current discount to NAV is too high.
   
• Boku A mobile payments company that allows customers including Apple and Spotify to charge for their services via an individual's mobile phone bill. While the payments business remains the majority of sales and earnings, this year Boku have expanded via an acquisition into identity services. This technology allows mobile carriers to identify individuals in the background without disrupting the users shopping experience (for example by asking for identity verification via text message). Boku continues to grow sales and earnings at comfortably double-digit rates and despite the early-stage nature of the technology is already profitable and cash generative.

Sales

The largest five sales during the year were:

• Keyword Studios (sold) A provider of a broad range of services to the gaming industry. It had been a strong performer since purchase and as a result had re-rated substantially.
   
• Faroe Petroleum (sold) Following a cash takeover approach from Norwegian operator DNO, the position was disposed of.
   
• Serica Energy (reduced) The position has performed well and was reduced to finance investment elsewhere within the natural resources allocation, for example the position in Jersey Oil & Gas.
   
• Tarsus Group (sold) The position was disposed of following a cash takeover approach from private equity.
   
• Eland Oil & Gas (reduced) The position was reduced (and following financial year end, subsequently sold), following a cash takeover approach from a listed peer.

It is notable that of the five largest sales, three were as a result of a takeover approach. Dairy Crest was also sold during the year as a result of a takeover by a Canadian company. The scale of takeovers within the portfolio this year is, we think, a demonstration of the valuation opportunity currently available in UK smaller companies.

Attribution

As the Chairman describes in his statement it was a disappointing year for performance relative to the benchmark. The Company's NAV on a total return basis rose 0.2% relative to a 6.8% rise in the FTSE All-Share Index. There are two primary reasons for this - the portfolio's significant position in smaller companies relative to the index, and two sizeable stock specific detractors (LoopUp and Blue Prism), both of which we go into in more detail below.

At the end of the financial year, the portfolio had a weighting of 54.2% in AIM and 8.6% in the FTSE SmallCap Index. During the financial year, the FTSE 100 returned 6.5% while the AIM All-Share returned  -7.5% and the FTSE SmallCap Index (excluding investment trusts) returned -0.2%. This weakness was limited to the smaller company area; over the same time period the FTSE 250 Index (of medium sized companies) returned 9.1%. This is a particularly unusual backdrop which requires explanation. There is an increasing desire for liquidity within open-ended funds to the detriment of smaller company positions. This means that some fund managers of open-ended vehicles are becoming forced sellers in the smaller company area, particularly of those with a market capitalisation below £250m. This pressure has been steadily increasing for some time but has become more pronounced this year. In the longer term, this provides a great opportunity for closed-end funds, such as your Company, to profit from materially undervalued growth companies. The other factor that is causing weakness in the area is the more domestic exposure of smaller companies at a time when there is still significant uncertainty regarding the future outlook for the UK.

This small company weakness has caused a material derating relative to the FTSE 250 Index.

(see chart in the Annual Report)

Top 10 detractors from absolute performance
	Share price return %	Contribution to NAV %
LoopUp	-80.6	-2.5
Blue Prism	-52.4	-2.4
4D Pharma	-39.7	-0.8
GRC International	-85.2	-0.7
Redde	-29.7	-0.6
Van Elle	-50.8	-0.5
Tribal Group	-28.6	-0.5
Quixant	-48.7	-0.5
IP Group	-47.8	-0.5
IQGeo	-23.7	-0.5

Source: Janus Henderson

The largest individual detractor during the year was conference call software provider LoopUp. This had been a good purchase since IPO, and we reduced the position modestly at a higher share price. However, this year the company has generated materially lower earnings than expected as the existing customer base has used the conference call facilities less. The customer base is approximately 50% UK and 50% US; the weakness in usage has been predominantly in the UK customer base, which is influenced by professional service firms. LoopUp is attributing the weakness to a difficult end market among their UK customer base. They can demonstrate that customers are not (on average) switching to competing software.

(see chart in the Annual Report)

The share price weakness has been a combination of substantially lower earnings in 2019 and a lower valuation on the shares. The current valuation is modest for a company that, despite its challenges, is forecast to grow sales and earnings substantially over the next few years. Any recovery will, however, take time as the management team needs to rebuild credibility.

The second largest detractor was Blue Prism, which provides robotic process automation software. This software allows the automation of relatively manual tasks, for example some customer service functions and payroll processing, with the idea of both reducing time and cost, and also improving accuracy. Similar to LoopUp, this position was purchased at IPO. It has been a very strong performer for the portfolio over the long term but this year has de-rated relative to its forecast sales (being loss making, a sales multiple is the best way to value it). There have not been any material disappointments that have caused the de-rating but rather there is a perception that Blue Prism is falling behind the curve relative to its two largest competitors. Both are American firms that have raised substantially more money than Blue Prism to invest in the area. This perception is, we think, largely correct but the rate of traction in the area means that sales can still continue to grow at a high rate. We have maintained the holding as the valuation is now modest relative to sales for this type of fast growing software company, and Blue Prism could be absorbed into one of the US competitors.

Top 10 contributors to absolute performance
	Share price return %	Contribution to NAV %
Serica Energy	23.4	1.1
RWS Holdings	27.5	1.1
Eland Oil & Gas	52.2	1.0
Tarsus Group	57.5	0.9
Assura	49.1	0.9
Aveva Group	61.8	0.9
Oxford Instruments	39.0	0.6
Cohort	38.5	0.6
Keyword Studios	17.7	0.5
Integrafin Holdings	40.8	0.5

Source: Janus Henderson

For the second year in a row, the largest contributor to performance was Serica Energy, a North Sea oil and gas producer. Serica purchased assets from BP following the material fall in the price of oil during 2014 and 2015, at a time when BP were aiming to reduce leverage. These assets have proved to be a very good purchase, with both production rates and cash flow surprisingly positive. The position in Serica has been reduced in order to rotate elsewhere within the 'natural resources' allocation.

The second largest contributor to performance was RWS Holdings, which offers specialist translation services, for example within the pharmaceutical industry where patents have to be translated to a high degree of accuracy. RWS has a scale advantage in the area which allows them to hire their own teams of specialist translators rather than using freelancers, in turn allowing them to generate a higher margin than peers. This year the shares have benefitted from a combination of strong organic growth and margin improvement, leading to double digit earnings growth.

(see chart in the Annual Report)

Environmental, social and corporate governance (ESG)

Responsible Investment is the term used at Janus Henderson to cover our work on ESG issues in the Company's investee companies. It is very wide ranging and all investment decisions are made thinking about them in an ESG context. It is an integral part of the investment process. Further detail on Janus Henderson's commitment to Corporate Social Responsibility can be found in the Janus Henderson Impact Report, available on Janus Henderson's website (www.janushenderson.com).

In some areas, considerable progress can be seen. The governance of many businesses has improved. Board composition has become more diverse and gender equality is being tackled by the business community. Some governance issues are easily measurable and progress is being made. This includes some social issues. The attention being paid, for instance, to child labour has meant a closer scrutiny by large companies of their suppliers work practices has been beneficial. However, there are ESG issues that are subjective and as a result progress is difficult to monitor. The environmental area is particularly hard. The energy sector is the largest contributor to greenhouse gases and therefore global warming. Disinvestment is unlikely to help solve the problem, but being supportive of companies in their efforts to develop renewables might, provided that the returns on renewables appear sufficient. Decarbonisation might mean that the returns from the large energy companies are not sustainable but, at present, the speed of change is not rapid enough to disrupt the business model of large energy companies. We are still invested in traditional oil exploration companies, but in aggregate the portfolio companies have a lower carbon footprint than the index.

We prefer dialogue with, rather than the exclusion of, companies that score badly in environmental screens so as to try and understand the issues. One of the ways an awareness of these issues colours all investment decisions is in the search for companies that are positively helping provide the answers. For instance this year we participated in a capital raise for Ceres Power which is developing Fuel Cell technology. The company has recently made significant progress with its product being adopted by a major Chinese bus manufacturer.

ESG issues are both a challenge and an opportunity. For a company to have a long term sustainable business model it needs to be aware of the issues and act appropriately.

Outlook

Despite the disappointing performance in both absolute terms and relative to the FTSE All-Share index during the financial year, the portfolio ended the calendar year well-placed for the subsequent surge in the UK market. Our high exposure to smaller companies and in particular stocks quoted on AIM held us back during the year but benefited performance in the final two months of 2019 and will, we believe, continue to do so in 2020. The greatest opportunity lies in the smallest companies and AIM stocks, currently held back by liquidity concerns which have caused open-ended funds to consequently sell at low valuations but we expect a catch-up in performance in 2020. Closed end funds, such as yours, without the need to worry about liquidity, should be a beneficiary.

During the financial year, stock selection was a positive contributor in each size segment of the market; large caps, mid caps, small caps and AIM. Allocation between size segments, not stock selection within them, held back performance. In the current financial year, we expect the allocation effect to turn in our favour and believe that our stock selection will continue to be strong. The low turnover during the year reflected our confidence in the portfolio as did the increase in the gearing level to 12.7% (at the year end), in what others regarded as uncertain times. Investors who were patient with us last year should continue to be well rewarded this year.

James Henderson and Laura Foll

Fund Managers

7 February 2020

 

MANAGING OUR RISKS

The Board, with the assistance of the Manager, has carried out a robust assessment of the principal risks facing the Company, including those that would threaten its business model, future performance, solvency and liquidity. The principal risks and uncertainties facing the Company relate to investing in the shares of companies that are listed in the United Kingdom, including small companies. Although the Company invests almost entirely in securities that are listed on recognised markets, share prices may move rapidly, whether upwards or downwards, and it may not be possible to realise an investment at the Manager's assessment of its value. Falls in the value of the Company's investments can be caused by unexpected external events. The companies in which investments are made may operate unsuccessfully, or fail entirely, such that shareholder value is lost. The Company is also exposed to the operational risk that one or more of its contractors or subcontractors may not provide the required level of service.

The Board considers regularly the principal risks facing the Company in order to mitigate them as far as practicable.  The Board monitors the Manager, its other service providers and the internal and external environments in whcht he Company operates to identify new and emerging risks.  It is the Board's view that demographic change, technological change, environmental sustainability and political change are emerging risks.

The Board has drawn up a risk map which identifies the substantial risks to which the Company is exposed. The Board has also put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy. These principal risks fall broadly under the following categories:

Risk	Controls and mitigation
Investment activity and strategy An inappropriate investment strategy (for example, in terms of asset allocation, stock selection, failure to anticipate external shocks or the level of gearing) may lead to a reduction in NAV, underperformance against the Company's benchmark and the Company's peer group; it may also result in the Company's shares trading on a wider discount to NAV.	The Manager provides the Directors with management information including performance data reports and portfolio analyses on a monthly basis. The Board monitors the implementation and results of the investment process with the Fund Managers, who attend all Board meetings, and reviews regularly data that monitors risk factors in respect of the portfolio. The Manager operates in accordance with investment limits and restrictions determined by the Board; these include limits on the extent to which borrowings may be used. The Board reviews its investment limits and restrictions regularly and the Manager confirms its compliance with them each month. The Board reviews investment strategy at each Board meeting. The Board seeks to manage these risks by ensuring a diversification of investments through regular meetings with the Fund Managers with measurement against performance indicators and by reviewing the extent of borrowings.
Financial instruments and the management of risk By its nature as an investment trust, the Company is exposed in varying degrees to market risk, interest rate risk, liquidity risk, currency risk and credit and counterparty risk. Market risk arises from uncertainty about the future prices of the Company's investments.	An analysis of these financial risks and the Company's policies for managing them are set out in the Annual Report.
Operational Disruption to, or failure of, the Manager's accounting, dealing or payment systems or the Custodian or the Depositary's records could prevent the accurate reporting and monitoring of the Company's financial position.	The Manager has contracted some of its operational functions, principally those relating to trade processing, investment administration, accounting and cash management, to BNP Paribas Securities Services. Details of how the Board monitors the services provided by the Manager and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal controls section of the Corporate Governance Report in the Annual Report.
Accounting, legal and regulatory A breach of Section 1158 could lead to a loss of investment trust status, resulting in capital gains realised within the portfolio being subject to corporation tax. A breach of the FCA's Listing Rules could result in suspension of the Company's shares, while a breach of the Companies Act 2006 could lead to criminal proceedings, or financial or reputational damage.	The Manager is contracted to provide investment, company secretarial, administration and accounting services through qualified professionals. The Board receives internal controls reports produced by Janus Henderson on a quarterly basis, which confirm regulatory compliance.
Liquidity In line with the Company's investment strategy the Fund Managers can invest on an unconstrained basis across the whole range of market capitalisations. This includes investing in smaller, early stage development companies. The market for these shares is less liquid than for those stocks which have a larger market capitalisation.	The Board monitors the Company's exposure to these smaller companies on a monthly basis and reviews this in detail at Board meetings. The liquidity of the whole portfolio is also considered at Board meetings.
Net gearing The ability to borrow money for investment purposes is a key advantage of the investment trust structure. A failure to maintain a bank facility would prevent the Company from gearing. A breach of the Company's borrowing covenants or the gearing range determined by the Board could lead to the Company becoming a forced seller of shares with possible losses for shareholders.	The Board reviews the level of net gearing at each Board meeting in the light of the liquidity of the portfolio and ensures that it is well within the covenants so that this risk is very unlikely to arise.
Failure of Janus Henderson A failure of the Manager's business, whether or not as a result of regulatory failure, cyber risk or other failure could result in the Manager being unable to meet its obligations and its duty of care to the Company.	The Board meets regularly with representatives of the Manager's Investment Management, Risk, Compliance, Internal Audit and Investment Trust teams and reviews internal control reports from the Manager on a quarterly basis. The failure of the Manager would not necessarily lead to a loss of the Company's assets, however, this risk is mitigated by the Company's ability to change its investment manager if necessary, subject to the terms of its management agreement.

BORROWINGS

The Company has an unsecured loan facility in place which allows it to borrow as and when appropriate. £20m (2018: £20m) is available under the facility. Net gearing is limited by the Board to 25% of net assets. The maximum amount drawn down in the period under review was £14.6m (2018: £18.1m), with borrowing costs for the year totalling £177,000 (2018: £229,000). £12.6m (2018: £7.0m) of the facility was in use at the year end. Net gearing at 31 October 2019 was 12.7% (2018: 6.7%) of net asset value.

VIABILITY STATEMENT

The Company is normally a long term investor; the Board believes it is appropriate to assess the Company's viability over a five year period in recognition of our long term horizon and what the Board believes to be investors' horizons, taking account of the Company's current position and the potential impact of the principal risks and uncertainties as documented in the Strategic Report contained in the Annual Report.

The assessment has considered the impact of the likelihood of the principal risks and uncertainties facing the Company, in particular investment strategy and performance against benchmark, whether from asset allocation or the level of gearing, and market risk, materialising in severe but plausible scenarios, and the effectiveness of any mitigating controls in place.

The Directors took into account the liquidity of the portfolio and the borrowings in place when considering the viability of the Company over the next five years and its ability to meet liabilities as they fall due. This included consideration of the duration of the Company's borrowing facilities and how a breach of any covenants could impact on the Company's net asset value and share price.

The Directors do not expect there to be any significant change in the current principal risks and adequacy of the mitigating controls in place. Also the Directors do not envisage any change in strategy or objectives or any events that would prevent the Company from continuing to operate over that period as the Company's assets are liquid, its commitments are limited and the Company intends to continue to operate as an investment trust. Only a substantial financial crisis affecting the global economy could have an impact on this assessment. Whilst there is currently uncertainty in the markets due to the UK's negotiations having left the European Union, the Board does not believe that this will have a long term impact on the viability of the Company and its ability to continue in operation.

The Directors recognise that there is a continuation vote due to take place at the Annual General Meeting in March 2020. The Directors support the continuation of the Company and expect that the Company will continue to exist for the foreseeable future, at least for the period of the assessment.

Based on this assessment, 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 next five year period.

RELATED PARTY TRANSACTIONS

The Company's transactions with related parties in the year were with its Directors and the Manager. There have been no material transactions between the Company and its Directors during the year and the only amounts paid to them were in respect of expenses and remuneration for which there were no outstanding amounts payable at the year end. Directors' shareholdings are disclosed in the Annual Report.

In relation to the provision of services by the Manager, other than fees payable by the Company in the ordinary course of business and the facilitation of marketing activities with third parties, there have been no material transactions with the Manager affecting the financial position of the Company during the year under review. More details on transactions with the Manager, including amounts outstanding at the year end, are given in the Notes of the Annual Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

In accordance with Disclosure Guidance and Transparency Rule 4.1.12, each of the Directors, who are listed in the Annual Report, confirms that, to the best of his or her knowledge:

·      the Company's Financial Statements, which have been prepared in accordance with UK Accounting Standards on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

·      the Strategic Report and Financial Statements include 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 it faces.

For and on behalf of the Board

Peter Jones

Chairman

7 February 2020

 

Twenty Largest Holdings at 31 October 2019

The stocks in the portfolio are a diverse mix of businesses operating in a wide range of end markets.

Rank 2019 (2018)	Company	% of Portfolio	Approximate Market Capitalisation	Valuation 2018 £'000	Purchases £'000	Sales £'000	Appreciation/ (depreciation) £'000	Valuation 2019 £'000
1 (3)	RWS Holdings¹	3.8	£1.6b	4,420	-	(1,549)	1,058	3,929
2 (2)	Serica Energy¹	3.1	£355m	4,752	-	(2,497)	961	3,216
3 (5)	Tracsis¹	2.9	£172m	2,750	-	-	225	2,975
4 *	Zoo Digital¹	2.5	£64m	1,177	1,169	(129)	431	2,648
5 (8)	Learning Technologies¹	2.5	£715m	2,503	114	-	(65)	2,552
6 *	Springfield Properties¹	2.4	£113m	963	1,480	-	58	2,501
7 (10)	Johnson Matthey	2.4	£5.9b	2,378	-	-	78	2,456
8 *	Sigmaroc¹	2.4	£79m	824	1,428	-	200	2,452
9 (7)	HSBC	2.3	£118b	2,616	-	-	(251)	2,365
10 *	Oxford Instruments	2.2	£742m	1,228	507	-	602	2,337
11 (15)	Assura	2.2	£1.8b	1,828	-	(278)	723	2,273
12 (1)	Blue Prism¹	2.2	£632m	5,029	51	(388)	(2,436)	2,256
13 *	Boku¹	2.1	£251m	1,103	1,299	-	(232)	2,170
14 *	GlaxoSmithKline	2.0	£88b	-	1,982	-	52	2,034
15(13)	Rio Tinto	1.9	£65b	1,902	-	-	105	2,007
16(12)	Ricardo	1.9	£342m	1,988	162	-	(198)	1,952
17 *	Cohort¹	1.8	£221m	1,414	-	-	507	1,921
18 *	Aveva Group	1.8	£6.8b	1,309	-	(200)	773	1,882
19 *	Vertu Motors¹	1.8	£152m	1,283	391	-	187	1,861
20 (11)	Rolls Royce	1.7	£13.6b	2,098	-	-	(325)	1,773

At 31 October 2019 these investments totalled £47,560,000 or 45.9% of the portfolio.

* Not in the top 20 largest investments last year

¹ Quoted on the Alternative Investment Market ('AIM')

Portfolio by Sector

As a percentage of the investment portfolio excluding cash

	31 October 2019 %	31 October 2018 %
Basic Materials	5.8	4.7
Consumer Goods	4.2	3.8
Consumer Services	10.6	10.8
Financials	21.1	14.5
Health Care	5.6	4.6
Industrials	22.4	22.1
Oil & Gas	8.0	11.7
Technology	20.0	25.2
Telecommunications	1.8	1.8
Utilities	0.5	0.8
	100.0	100.0

 

Portfolio by Index

As a percentage of the investment portfolio excluding cash

	31 October 2019 %	31 October 2018 %
FTSE 100	20.3	14.0
FTSE 250	13.8	8.3
FTSE SmallCap	8.6	9.9
FTSE Fledgling	0.0	0.5
FTSE AIM	54.2	63.3
Other1	3.1	4.0
	100.0	100.0

1 Other also includes AIM investments outside the FTSE AIM Index and shares listed on the main market which are not included in the FTSE All-Share Index

Market capitalisation of the portfolio at 31 October 2019

	Portfolio Weight %	Benchmark Weight %
Greater than £2b	23.8	88.6
£1b - £2b	10.7	5.8
£500m - £1b	11.5	3.0
£200m - £500m	20.8	2.2
£100m - £200m	12.3	0.4
£50m - £100m	12.4	0.0
Less than £50m	8.1	0.0
Other	0.4	0.0
	100.0	100.0

A glossary of terms and Alternative Performance Measures can be found in the Annual Report

Sources: Morningstar for the AIC, Janus Henderson, Refinitiv Datastream
 

 

AUDITED INCOME STATEMENT

		Year ended 31 October 2019			Year ended 31 October 2018
		Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000
Notes
2	Losses on investments held at fair value through profit or loss	-	(1,824)	(1,824)	-	(6,669)	(6,669)
3	Income from investments held at fair value through profit or loss	2,538	-	2,538	2,097	-	2,097
4	Other interest receivable and other income	379	-	379	74	-	74
		---------	----------	----------	---------	----------	----------
	Gross revenue and capital losses	2,917	(1,824)	1,093	2,171	(6,669)	(4,498)
5	Management and performance fee	(147)	(342)	(489)	(165)	(386)	(551)
	Other administrative expenses	(347)	-	(347)	(319)	-	(319)
		---------	----------	----------	-----------	----------	----------
	Net return/(loss) before finance costs and taxation	2,423	(2,166)	257	1,687	(7,055)	(5,368)
	Finance costs	(53)	(124)	(177)	(69)	(160)	(229)
		-----------	----------	----------	-----------	----------	----------
	Net return/(loss) before taxation	2,370	(2,290)	80	1,618	(7,215)	(5,597)
	Taxation	(4)	-	(4)	(2)	-	(2)
		-----------	----------	----------	-----------	----------	----------
	Net return/(loss) after taxation	2,366	(2,290)	76	1,616	(7,215)	(5,599)
		----------	----------	----------	----------	----------	----------
6	Net return/(loss) per ordinary share -
	basic and diluted	29.88p	(28.92p)	0.96p	20.20p	(90.18p)	(69.98p)
		======	=======	======	======	=======	======

The total columns of this statement represent 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. All revenue and capital items in the above statement derive from continuing operations. The Company had no recognised gains or losses other than those disclosed in the Income Statement.

 

AUDITED STATEMENT OF CHANGES IN EQUITY

Year ended 31 October 2019	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total shareholders' funds £'000
At 1 November 2018	2,000	14,838	2,431	72,334	2,757	94,360
Ordinary dividends paid	-	-	-	-	(1,699)	(1,699)
Net (loss)/return after taxation	-	-	-	(2,290)	2,366	76
Purchase of 99,670 Ordinary shares to be held in treasury	-	-	-	(939)	-	(939)
	--------	----------	----------	----------	-----------	---------
At 31 October 2019	2,000	14,838	2,431	69,105	3,424	91,798
	=====	======	======	======	======	=====

Year ended 31 October 2018	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total shareholders' funds £'000
At 1 November 2017	2,000	14,838	2,431	79,549	2,781	101,599
Ordinary dividends paid	-	-	-	-	(1,640)	(1,640)
Net (loss)/return after taxation	-	-	-	(7,215)	1,616	(5,599)
	--------	----------	----------	----------	-----------	---------
At 31 October 2018	2,000	14,838	2,431	72,334	2,757	94,360
	=====	======	======	======	======	=====

 

AUDITED STATEMENT OF FINANCIAL POSITION

	31 October 2019 £'000	31 October 2018 £'000
Fixed Assets
Investments held at fair value through profit or loss
Listed at market value	45,684	35,971
Quoted on AIM at market value	57,514	65,319
Unlisted at market value	400	400
	------------	------------
	103,598	101,690
	------------	------------
Current assets
Investment held at fair value through profit or loss	2	2
Debtors	231	147
Cash at bank and in hand	971	707
	------------	------------
	1,204	856
Creditors: amounts falling due within one year	(13,004)	(8,186)
	-----------	-----------
Net current liabilities	(11,800)	(7,330)
Total assets less current liabilities	91,798	94,360
	-----------	-----------
Net assets	91,798	94,360
	=======	=======
Capital and reserves
Called up share capital	2,000	2,000
Share premium account	14,838	14,838
Capital redemption reserve	2,431	2,431
Other capital reserves	69,105	72,334
Revenue reserve	3,424	2,757
	------------	------------
Total shareholders' funds	91,798	94,360
	=======	=======
Net asset value per ordinary share (basic and diluted)	1,161.8p	1,179.4p
	=======	=======

 

AUDITED STATEMENT OF CASH FLOWS

	Year ended 31 October 2019	Year ended 31 October 2018
	£'000	£'000
Cash flows from operating activities
Net return/(loss) before taxation	80	(5,597)
Add: finance costs	177	229
Add: losses on investments held at fair value through profit or loss	1,824	6,669
Withholding tax on dividends deducted at source	(7)	(1)
(Increase)/decrease in other debtors	(81)	62
Increase/(decrease) in creditors	132	(899)
	----------	----------
Net cash inflow from operating activities	2,125	463
	----------	----------
Cash flows from investing activities
Purchase of investments	(28,081)	(30,932)
Sale of investments	23,431	39,550
	------------	------------
Net cash (outflow)/inflow from investing activities	(4,650)	8,618
	------------	------------
Cash flows from financing activities
Equity dividends paid	(1,699)	(1,640)
Net loans drawn down/(repaid)	5,602	(7,624)
Buyback of ordinary shares	(939)	-
Interest paid	(175)	(233)
	-----------	-----------
Net cash inflow/(outflow) from financing activities	2,789	(9,497)
	-----------	-----------
Net increase/(decrease) in cash and cash equivalents	264	(416)
Cash and cash equivalents at start of year	707	1,123
	----------	----------
Cash and cash equivalents at end of year	971	707
	----------	----------
Comprising:
Cash at bank	971	707
	=====	=====

 

NOTES TO THE FINANCIAL STATEMENTS

1.	Accounting policies
	(a) Basis of accounting The Company is a registered investment company as defined in section 833 of the Companies Act 2006 and is incorporated in the United Kingdom. It operates in the United Kingdom and is registered at 201 Bishopsgate, London EC2M 3AE. The Financial Statements have been prepared in accordance with the Companies Act 2006, FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and with the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts (the 'SORP') issued in November 2014 and updated in February 2018 with consequential amendments. The principal accounting policies applied in the presentation of these Financial Statements are set out below. These policies have been consistently applied to all the years presented. The Financial Statements have been prepared under the historical cost basis except for the measurement of fair value of investments. In applying FRS 102, financial instruments have been accounted for in accordance with Section 11 and 12 of the standard. All of the Company's operations are of a continuing nature.
	(b) Going concern The Company's Articles of Association require that at the Annual General Meeting of the Company held in 2008, and every third year thereafter, an ordinary resolution be put to approve the continuation of the Company. The resolutions put to the Annual General Meetings in 2011, 2014, and in 2017 were duly passed. The next triennial continuation resolution will be put to the Annual General Meeting in 2020. The assets of the Company consist almost entirely of securities that are listed (or quoted on AIM) and are readily realisable. 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, the principal risks and other matters discussed in connection with the Viability Statement, the Directors considered it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
2.		Losses on investments held at fair value through profit or loss	2019 £'000	2018 £'000
		Gains on the sale of investments based on historical cost1	6,871	11,464
		Revaluation gains recognised in previous years	(3,418)	(11,325)
			----------	----------
		Gains on investments sold in the year based on carrying value at previous Statement of Financial Position date	3,453	139
		Revaluation losses on investments held at 31 October	(5,277)	(6,808)
			----------	----------
			(1,824)	(6,669)
			======	======

 ¹ Also includes special capital dividends of £92,000

3.	Income from investments held at fair value through profit or loss							2019 £'000	2018 £'000
	UK:
	Dividends from listed investments							1,433	1,176
	Dividends from AIM investments							798	719
								-------	-------
								2,231	1,895
	Non-UK:
	Dividends from listed investments							307	202
								-------	-------
								2,538	2,097
								====	====
4.	Other interest receivable and other income							2019 £'000	2018 £'000
	Deposit interest							3	3
	Stock lending commission							373	49
	Underwriting commission (allocated to revenue)							3	22
								-------	-------
								379	74
								====	====
	At 31 October 2019, the total value of securities on loan by the Company for stock lending purposes was £14,423,000 (2018: £11,683,000). The maximum aggregate value of securities on loan at any one time during the year ended 31 October 2019 was £22,162,000 (2018: £13,465,000). The Company's agent holds collateral at 31 October 2019, with the value of £15,234,000 (2018: £14,079,000) in respect of securities on loan, the value of which is reviewed on a daily basis and comprises CREST Delivery By Value ('DBVs') and Government Bonds with a market value of 106% (2018: 121%) of the market value of any securities on loan. During the year the Company was not required to take up shares in respect of underwriting commission; no commission was taken to capital (2018: same).
5.	Management and performance fee
	2019				2018
		Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000		Capital return £'000		Total return £'000
	Management fee	147	342	489	165		386		551
	Performance fee	-	-	-	-		-		-
		--------	----------	----------	--------		----------		----------
		147	342	489	165		386		551
		--------	----------	----------	--------		----------		----------
	The basis on which the management fee is calculated is set out in the Strategic Report contained in the Annual Report. The allocation between revenue return and capital return is explained in the Notes to the Financial Statements within the Annual Report. No performance fee was earned during the year (2018: £nil).

6.	Net return/(loss) per ordinary share - basic and diluted
	The total return per ordinary share is based on the total return attributable to the ordinary shares of £76,000 (2018: total loss of £5,599,000) and on 7,919,555 ordinary shares (2018: 8,000,858) being the weighted average number of shares in issue during the year. The return/(loss) per ordinary share can be further analysed as follows:
			2019 £'000		2018 £'000
	Revenue return		2,366		1,616
	Capital loss		(2,290)		(7,215)
			-----------		-----------
	Total return/(loss)		76		(5,599)
			-----------		-----------
	Weighted average number of ordinary shares		7,919,555		8,000,858
			2019		2018
	Revenue return per ordinary share		29.88p		20.20p
	Capital loss per ordinary share		(28.92p)		(90.18p)
			-----------		-----------
	Total return/(loss) per ordinary share (basic and diluted)		0.96p		(69.98p)
			======		======
7.	Net asset value per ordinary share - basic and diluted
	The net asset value per ordinary share at the year end was 1,161.8p (2018: 1,179.4p). The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £91,798,000 (2018: £94,360,000) and on the 7,901,188 ordinary shares in issue at 31 October 2019 (2018: 8,000,858). There are no dilutive securities so the basic and diluted net asset value per ordinary share are the same. The movements during the year of the assets attributable to the ordinary shares were as follows:
		2019 £'000		2018 £'000
	Total net assets at 1 November	94,360		101,599
	Total net return/(loss)	76		(5,599)
	Dividends paid in the year	(1,699)		(1,640)
	Buyback of shares	(939)		-
		-----------		-----------
	Total net assets at 31 October	91,798		94,360
		======		======
8.	Called up share capital	2019 £'000		2018 £'000
	Allotted and issued ordinary shares of 25p each
	7,901,188 (2018: 8,000,858)	1,975		2,000
	Ordinary shares of 25p each held in treasury 99,670 (2018: nil)	25		-
		----------		----------
		2,000		2,000
		======		======
	During the year 99,670 (2018: nil) ordinary shares of 25p each were repurchased by the Company at a total cost, including transaction costs, of £939,000 (2018: £nil). All of the shares were placed in treasury. Shares held in treasury do not carry a right to receive dividends. Subsequent to the year end 2,813 ordinary shares were bought back to be held in treasury at a cost of £27,000.

9.	Ordinary dividends paid	Record date	Payment date	2019 £'000	2018 £'000
	Amounts recognised as distributions to equity holders in the year:
	Final dividend for the year ended 31 October 2018 of 14.5p (2017: 14.0p)	15 February 2019	22 March 2019	1,146	1,120
	Interim dividend for the year ended 31 October 2019 of 7.0p (2018: 6.5p)	16 August 2019	20 September 2019	553	520
				---------	---------
				1,699	1,640
				=====	=====

	Subject to approval at the Annual General Meeting, the proposed final dividend of 19.0p per ordinary share will be paid on 27 March 2020 to shareholders on the register of members at the close of business on 21 February 2020. The shares will be quoted ex-dividend on 20 February 2020. The total dividends payable in respect of the financial year, which form the basis of the test under Section 1158 of the Corporation Tax Act 2010, are set out below:
		Year ended 31 October 2019	Year ended 31 October 2018
		£'000	£'000
	Revenue available for distribution by way of dividends for the year	2,366	1,616
	Interim dividend for the year ended 31 October 2019: 7.0p (2018: 6.5p)	(553)	(520)
	Proposed final dividend for the year ended 31 October 2019: 19.0p (based on the 7,898,375 ordinary shares in issue at 7 February 2020) (2018: 14.5p on 8,000,858 ordinary shares)	(1,501)	(1,150)
		-----------	-----------
	Transferred to/(from) revenue reserve1	312	(54)
		=======	=======
	All dividends have been or will be paid out of revenue profit and the revenue reserve.  1Undistributed revenue comprises 12.3% of income from investments (2018: nil)
10.	2019 Financial Information
	The figures and financial information for the year ended 31 October 2019 are extracted from the Company's Annual Financial Statements for that period and do not constitute statutory financial statements for that period. The Company's Annual Financial Statements for the year ended 31 October 2019 have been audited but have not yet been delivered to the Registrar of Companies. The Independent Auditors' Report on the 2019 Financial Statements was unqualified, did not include a reference to any matter to which the Auditors drew attention without qualifying the report, and did not contain any statements under sections 498(2) and 498(3) of the Companies Act 2006.
11.	2018 Financial Information The figures and financial information for the year ended 31 October 2018 are extracted from the Company's Annual Financial Statements for that period and do not constitute statutory financial statements for that period. The Company's Annual Financial Statements for the year ended 31 October 2018 have been audited and delivered to the Registrar of Companies. The Independent Auditors' Report on the 2018 Financial Statements was unqualified, did not include a reference to any matter to which the Auditors drew attention without qualifying the report, and did not contain any statements under sections 498(2) and 498(3) of the Companies Act 2006.
12.	Annual Report and Annual General Meeting The Annual Report for the year ended 31 October 2019 will be posted to shareholders in February 2020 and will be available on the Company's website www.hendersonopportunitiestrust.com or from the Corporate Secretary at the Company's Registered Office, 201 Bishopsgate, London EC2M 3AE. The Annual General Meeting will be held at the registered office on Thursday 19 March 2020 at 2.30pm. The Notice of the Annual General Meeting will be posted to shareholders with the Annual Report and will be available on the Company's website.

For further information, please contact:

James Henderson Fund Manager Henderson Opportunities Trust plc Telephone: [phone]		Laura Foll Fund Manager Henderson Opportunities Trust plc Telephone: [phone]
Laura Thomas Investment Trust PR Manager Janus Henderson Investors Telephone: [phone]		James de Sausmarez Director and Head of Investment Trusts Janus Henderson 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) is incorporated into, or forms part of, this announcement.

 

END

 

 

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