Half Yearly Report

RNS Number : 0254A

Martin Currie Global Portfolio Tst

24 September 2015

 



Martin Currie Global Portfolio Trust plc

Half-yearly financial report

Six months to 31 July 2015

A copy of the Half Year report for the six months ended 31 July 2015 has been submitted to the National Storage Mechanism.  This will be available for viewing at http://www.hemscott.com/nsm.do

A copy of this half year report can be downloaded at www.martincurrieglobal.com

Financial Highlights

Total returns*

	Six months ended 31 July 2015	Six months ended 31 July 2014
Net asset value per share**	2.2%	7.0%
Benchmark	1.9%	6.5%
Share price	1.2%	7.2%

Income

	Six months ended 31 July 2015	Six months ended 31 July 2014
Revenue return per share***	2.56p	2.48p
Dividend per share	1.80p	1.80p

Ongoing Charges****

	Six months ended 31 July 2015	Six months ended 31 July 2014
Ongoing charges	0.71%	0.75%
Performance Fee	-	-
Ongoing charges plus performance fee	0.71%	0.75%

*        The combined effect of the rise and fall in the share price, net asset value or benchmark together with any dividend paid.

**       The net asset value is exclusive of income with dividends reinvested.

***      For details of calculation, refer to note 2.

****     Ongoing charges (as a percentage of shareholders' funds) are calculated using average net assets over the period. The ongoing charges figure has been calculated with the AIC's recommended methodology.

Chairman's Statement

Welcome to the half-yearly report covering the six months to 31 July 2015.

Your Company made further progress over the six month period. The net asset value ('NAV') increased 2.2% on a total return basis, outperforming of the FTSE World global equity benchmark that returned 1.9%. The share price increased 1.2% over the period.

After years of growth, global equity markets weakened in June when the FTSE World index dropped more than 5% in sterling terms facing uncertainty over Greece and the euro, and worries about China. The market setback intensified during July/August and markets as a whole lost all their gains of the first part of the year despite underlying global growth remaining steady and interest rates low. During the period the portfolio has done better than the market thanks to the manager's careful stock selection and is positioned to continue to perform well. Tom Walker gives his views of the market and a more detailed explanation of the portfolio performance in his report below.

The outlook is for moderate growth globally with inflation and interest rates continuing to be low. Against this background Tom's focus on the most resilient stocks globally and careful control of costs will be key to the Company's continued successful investment performance.

Income and dividends

The Company's income has grown modestly in the period and the next quarterly dividend will be 0.9p paid on 23 October 2015 to shareholders on the register at 2 October 2015. This follows the first interim payment of 0.9p paid on 24 July 2015 and brings the total dividend for the period to 1.8p.

Your Company has successfully operated a progressive dividend policy since launch, and even through some of the most difficult equity market conditions on record the dividend has never been reduced. In fact, the current dividend yield of 2.3% remains one of the highest in the Association of Investment Companies (AIC) Global sector. While interest rates are at record lows, this is an attractive level of income.

Keeping in touch

Over the period your Company has been reviewed by several investment specialists and brokers and many of the reports and articles are hosted on the Company's website at www.martincurrieglobal.com.

I encourage you to visit and register for email updates that will keep you abreast of information relating to your Company.

I thank you for your continued support. Please contact me if you have any questions at [e-mail].

Neil Gaskell

Chairman, Martin Currie Global Portfolio Trust plc

24 September 2015

 

Manager's Review

The Company's net asset value rose 2.2% on a total return basis in the first half of the year, marginally ahead of the benchmark, which returned 1.9%. While relative performance benefitted from being underweight in emerging markets, some of our stocks in developed Asia ex-Japan performed poorly as emerging market anxieties spilled over into that region.  Stock selection in North America was largely positive, with strong performances from banking and financial services multinational JP Morgan, insurance corporation AIG and e-commerce giant eBay. Capital investment remains sluggish globally and a number of industrial companies have downgraded growth expectations. United Technologies and Schneider Electric were among our worst performers. With the ebb and flow of the oil price during the period (see below), our exposure to the energy sector was a headwind; however, the portfolio benefitted when its largest energy holding, BG Group, was bid for by Shell.

Little has changed in my regional or sector outlook so that did not drive any major changes to the overall shape of the portfolio during the period. However, performance and stock activity mean that the portfolio has seen some changes. We have greater representation of US-quoted companies and less of European-quoted companies than at the start of the period and by sector, technology exposure has risen and consumer services fallen. These changes are driven by stock choices, for example I sold out of eBay (consumer services) and bought Facebook (technology). I did marginally reduce energy exposure, with the sale of Seadrill and Shell. I added two pharmaceutical stocks, Mylan and Celgene, while reducing exposure to Roche which had been one of the largest active positions. I also reduced our one utility holding, Sempra Energy and retailer L Brands, both of which have been strong performers over a long period.

Investors' anxiety centred principally on the potential impact of US interest rate rises later this year, Greece facing a eurozone exit and slowing economic growth in China. None of these concerns is new and although Greece may have averted immediate expulsion from the eurozone, all these issues remain unresolved.

Economically, at the margin one could say that the developed world has improved, but growth in emerging countries continues to slow. The US economy is a little more robust and the UK seems to have established a more credible growth outlook. In addition, quantitative easing in Europe has helped to quash deflation and promote growth, albeit that growth is weak and rather patchy around the continent.

However, the current slowdown in China characterises a problem being experienced in many Asian and emerging economies. After years of growth, driven in many countries by strong commodity prices and excessive debt, a combination of uncertain political leadership, trade imbalances and weak consumption has caused a dramatic decline. Russia, for example, which has its own particular challenges, is experiencing its first recession since the global financial crisis.

Two key variables dictating investor behaviour have been the volatile oil price and the large moves in bond yields. Brent crude started and ended the six-month period at around US$53 per barrel. However, it traded as high as US$68 in May and after the end of July (outside the reporting period) it fell well below US$50. Anticipating higher interest rates, at least in the US, 10-year Treasuries weakened, their yield rising from 1.8% to 2.2% in the period.

Looking back at these fluctuations, the six months under review have clearly been far from dull. Global equity markets were also volatile, rising strongly for the first 10 weeks, but then reversing almost all those gains as the summer advanced. They ended the period up just 1.9%. So what now?

Outlook

While it is my job to outperform the FTSE World index, the question which I am most often asked is whether I think markets are likely to fall or rise in the next year. (Clearly the answer to this question is also important to me because it influences the sorts of stocks I want to favour in the portfolio.)

Four years ago, between July and August 2011, our benchmark index fell 19% over a six-week period. Until the dramatic fall in global markets during August this year (which resulted in a cumulative 17% fall since the high in April), equity markets had been extremely resilient and had failed to correct by as much as 10% on any occasion.

In my opinion, the key determinant of equity market direction currently remains the underpinning offered by near-zero interest rates for depositors.

Although more commentators are now suggesting interest rates will rise this year in the US, any increases are likely to be small. The global, and to a lesser extent, US economic outlook, remains uncertain and there is little prospect of a dangerous rise in inflation. Indeed, China's economic slowdown and currency devaluation are further deflationary pressures.

Forecasting currency changes, interest rates and political events that may move markets is hard to do, not least in the current uncertain climate.  As a stockpicker of global equities, there is a vast range of regions and sectors from which I and the team at Martin Currie can pick stocks. In general terms, the current environment does not favour companies whose fortunes are extremely sensitive to economic activity - I am not expecting a significant economic recovery any time soon. That said, every company has a price and assessing the true value of a company is a large part of what we do.

While interest rates remain low, equities remain attractive to investors and I believe global equity markets can continue to move higher.  Accordingly, I am approaching portfolio construction expecting slow and probably rather laboured upward progress in markets. Appropriately valued companies with strong cash flow and an ability to weather general economic weakness, through cost discipline or niche revenue opportunities, will represent the core of the portfolio.

Tom Walker

24 September 2015

Risk and mitigation

The Company's business model is longstanding and resilient to most of the short term uncertainties that it faces, which the Board believes are effectively mitigated by its internal controls and the oversight of the investment manager, as described in the latest annual report.

Its principal risks and uncertainties are therefore largely longer term and driven by the inherent uncertainties of investing in global equity markets. The Board believes that it is able to respond to these longer term risks and uncertainties with effective mitigation so that both the potential impact and the likelihood of these seriously affecting shareholders' interests are materially reduced.

Risks are regularly monitored at Board meetings and the Board's planned mitigation measures are described in the latest annual report. As part of its annual strategy meeting, the Board carried out a robust assessment of the principal risks facing the Company.

The Board has identified the following principal risks to the Company:

·      Loss of s1158-9 status

·      Long-term investment underperformance

·      Decline in overall size of the Company

·      Failure to manage shareholder relations

·      Discount management policy

·      The investment manager ceases to effectively manage investment trusts or its reputation fails

Further details of these risks and how the Board manages them can be found in the 2015 annual report and on the Company's website www.martincurrieglobal.com.

Directors' Responsibility

In accordance with Chapter 4 of the Disclosure and Transparency Rules and to the best of their knowledge, each director of the Company confirms that the financial statements have been prepared in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and Applicable Law) and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in November 2014. The directors are satisfied that the financial statements give a true and fair view of the assets, liabilities, financial position and profit of the Company. Furthermore, each director certifies that the interim management report includes an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements together with a description of the principal risks and uncertainties that the Company faces. In addition, each director of the Company confirms that, with the exception of management and secretarial fees, directors' fees and directors' shareholdings there have been no related party transactions during the first six months of the financial year.

Going concern status

The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the chairman's statement and manager's review. The financial position of the Company as at 31 July 2015 is shown on the unaudited condensed statement of financial position below. The cash flows of the Company are also set out below.

In accordance with the Financial Reporting Council's guidance on going concern and liquidity risk issued in October 2009, the directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets consist of a diverse portfolio of listed equity shares which, in most circumstances, are realisable within a very short timescale. The directors are mindful of the principal risks disclosed above and have reviewed revenue forecasts and they believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future and for at least one year from the date of signing of these financial statements. Accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.

By order of the board

Neil Gaskell

Chairman

24 September 2015

 

Portfolio Summary

Portfolio distribution by region

By Region	(Unaudited) 31 July 2015 Company %	31 July 2015 FTSE World index %	31 January 2015 Company %	31 January 2015 FTSE World index %
North America	55.9	56.4	52.2	56.4
Developed Europe ex UK	12.9	16.3	15.3	16.0
United Kingdom	11.7	7.6	12.9	7.6
Developed Asia Pacific ex Japan	8.1	5.9	9.3	6.5
Japan	6.9	9.1	6.2	8.5
Global Emerging Markets	2.8	4.3	2.5	4.8
Middle East	1.6	0.3	1.6	0.2
	100.0	100.0	100.0	100.0

By Sector	(Unaudited) 31 July 2015 Company %	31 July 2015 FTSE World index %	31 January 2015 Company %	31 January 2015 FTSE World index %
Financials	23.9	22.2	21.7	21.3
Industrials	16.7	12.2	17.6	12.4
Consumer services	13.7	11.6	15.8	11.2
Technology	11.3	10.8	9.1	10.8
Healthcare	10.0	12.0	9.4	11.4
Oil and gas	6.8	6.4	7.2	7.2
Consumer goods	6.1	13.4	6.4	13.6
Basic materials	5.6	4.8	5.7	5.1
Telecommunications	4.2	3.5	4.7	3.5
Utilities	1.7	3.1	2.4	3.5
	100.0	100.0	100.0	100.0

By Asset Class (including cash and borrowings)	31 July 2015 %	31 January 2015 %
Equities	98.5	98.5
Cash	1.5	1.5
	100.0	100.0

Largest 10 holdings	(Unaudited) 31 July 2015 Market value £000	(Unaudited) 31 July 2015 % of total portfolio	(Audited) 31 January 2015 Market value £000	(Audited) 31 July 2015 % of total portfolio
JP Morgan Chase	8,347	4.6	6,883	3.8
Prudential	6,119	3.4	6,576	3.6
Apple	5,986	3.3	6,003	3.3
Lockheed Martin	5,641	3.1	5,330	2.9
L Brands	4,987	2.8	6,451	3.5
Lyondell Basell Industries	4,799	2.7	4,204	2.3
Verizon Communications	4,790	2.7	4,861	2.7
United Technologies	4,764	2.6	5,666	3.1
American International Group	4,536	2.5	3,592	2.0
BG Group	4,502	2.5	3,655	2.0

Unaudited Condensed Statement of Comprehensive Income

		(Unaudited) Six months to 31 July 2015			(Unaudited) Six months to 31 July 2014
	Note	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Net gains on investments	5	-	2,456	2,456	-	9,676	9,676
Net currency (losses)/gains	8	-	(24)	(24)	-	8	8
Income	3	3,318	-	3,318	3,250	-	3,250
Investment management fee		(155)	(311)	(466)	(140)	(281)	(421)
Other expenses		(203)	-	(203)	(217)	-	(217)
Net return on ordinary activities before taxation		2,960	2,121	5,081	2,893	9,403	12,296
Taxation on ordinary activities	4	(347)	-	(347)	(331)	-	(331)
Net return attributable to shareholders		2,613	2,121	4,734	2,562	9,403	11,965
Net returns per ordinary share	2	2.56p	2.08p	4.64p	2.48p	9.09p	11.57p

Unaudited Condensed Statement of Comprehensive Income continued.

		(Audited) Year to 31 January 2015
	Note	Revenue £000	Capital £000	Total £000
Net gains on investments	5	-	22,345	22,345
Net currency (losses)/gains	8	-	(62)	(62)
Income	3	5,213	-	5,213
Investment management fee		(290)	(579)	(869)
Other expenses		(403)	-	(403)
Net return on ordinary activities before taxation		4,520	21,704	26,224
Taxation on ordinary activities	4	(490)	-	(490)
Net return attributable to shareholders		4,030	21,704	25,734
Net returns per ordinary share	2	3.92p	21.10p	25.02p

The total columns of the above statement are the profit and loss accounts of the Company.

The revenue and capital items are presented in accordance with the Association of Investment Companies (AIC) Statement of Recommended Practice.

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

No operations were acquired or discontinued in the six months.

Unaudited Condensed Statement of Financial Position

		(Unaudited) As at 31 July 2015		(Unaudited) As at 31 July 2014		(Audited) As at 31 January 2015
	Note	£000	£000	£000	£000	£000	£000
Fixed assets
Investments at fair value through profit or loss
Listed on the London Stock Exchange			21,196		23,254		23,444
Listed on exchanges abroad			159,534		146,224		158,354
	5		180,730		169,478		181,798
Current Assets
Debtors and prepayments	6	296		403		289
Cash at bank		2,758		1,814		2,813
		3,054		2,217		3,102
Creditors
Amounts falling due within one year	7	(371)		(628)		(949)
Net current assets			2,683		1,589		2,153
Total assets less current liabilities			183,413		171,067		183,951
Capital and reserves
Called-up share capital		5,224		5,224		5,224
Capital redemption reserve		10,793		10,793		10,793
Special distributable reserve*		111,456		113,423		114,383
Capital reserve		50,053		35,631		47,932
Revenue reserve*		5,887		5,996		5,619
Total shareholders' funds			183,413		171,067		183,951
Net asset value per ordinary share of 5p	2		180.7p		166.8p		178.5p

* These reserves are distributable

Unaudited Condensed Statement of Changes in Equity

	Called up ordinary share capital £000	Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000	Revenue reserve £000	Total £000
Statement of changes in equity
At 31 January 2015	5,224	10,793	114,383	47,932	5,619	183,951
Ordinary shares bought back during the period	-	-	(3,340)	-	-	(3,340)
Ordinary shares issued during the period	-	-	413	-	-	413
Gains on realisation of investments at fair value	-	-	-	2,454	-	2,454
Movement in currency gains/(losses)	-	-	-	(24)	-	(24)
Movement in fair value gains/(losses)	-	-	-	2	-	2
Capitalised expenses	-	-	-	(311)	-	(311)
Net revenue	-	-	-	-	2,613	2,613
Dividends paid	-	-	-	-	(2,345)	(2,345)
At 31 July 2015	5,224	10,793	111,456	50,053	5,887	183,413
	Called up ordinary share capital £000	Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000	Revenue reserve £000	Total £000
Statement of changes in equity
At 31 January 2014	5,224	10,793	116,249	26,228	5,707	164,201
Ordinary shares bought back during the period	-	-	(2,826)	-	-	(2,826)
Gains on realisation of investments at fair value	-	-	-	5,355	-	5,355
Movement in currency gains/(losses)	-	-	-	8	-	8
Movement in fair value gains/(losses)	-	-	-	4,321	-	4,321
Capitalised expenses	-	-	-	(281)	-	(281)
Net revenue	-	-	-	-	2,562	2,562
Dividends paid	-	-	-	-	(2,273)	(2,273)
At 31 July 2014	5,224	10,793	113,423	35,631	5,996	171,067
	Called up ordinary share capital £000	Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000	Revenue reserve £000	Total £000
At 31 January 2014	5,224	10,793	116,249	26,228	5,707	164,201
Ordinary shares bought back during the year	-	-	(4,964)	-	-	(4,964)
Ordinary shares issued during the year	-	-	3,098	-	-	3,098
Gains on realisation of investments at fair value	-	-	-	8,065	-	8,065
Movement in currency gains/(losses)	-	-	-	(62)	-	(62)
Movement in fair value gains/(losses)	-	-	-	14,280	-	14,280
Capitalised expenses	-	-	-	(579)	-	(579)
Net revenue	-	-	-	-	4,030	4,030
Dividends paid	-	-	-	-	(4,118)	(4,118)
At 31 January 2015	5,224	10,793	114,383	47,932	5,619	183,951

 

Unaudited Condensed Statement of Cash Flow

	Note	(Unaudited) Six months to 31 July 2015		(Unaudited) Six months to 31 July 2014		(Audited) Year to 31 January 2015
		£000	£000	£000	£000	£000	£000
Net cash inflow from operating activities	8		2,272		2,161		3,451
Capital expenditure and financial investment
Payment to acquire investments		(17,030)		(21,450)		(32,689)
Proceeds from sales of investments		19,906		25,403		37,639
Net cash inflow from capital expenditure and financial investment			2,876		3,953		4,950
Equity dividends paid			(2,345)		(2,273)		(4,118)
Net cash inflow before financing			2,803		3,841		4,283
Financing
Repurchase of ordinary share capital		(3,247)		(2,493)		(4,964)
Shares issued for cash		413		-		3,098
Net cash outflow from financing			(2,843)		(2,493)		(1,866)
Reconciliation of net cash flow to movements in net cash
(Decrease)/increase in cash			(31)		1,348		2,417
Foreign exchange movements			(24)		8		(62)
Movement in net cash in the period			(55)		1,356		2,355
Opening net cash			2,813		458		458
Closing net cash			2,758		1,814		2,813

 

Notes to the Condensed Financial Statements

Note 1  Accounting policies

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

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

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

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

Note 2 

	(Unaudited) Six months to 31 July 2015	(Unaudited) Six months to 31 July 2014	(Audited) Year to 31 January 2015
Returns and net asset value
The return and net asset value per ordinary share are calculated with reference to the following figures:
Revenue return
Revenue return attributable to ordinary shareholders	£2,613,000	£2,562,000	£4,030,000
Weighted average number of shares in issue during period*	102,052,532	103,447,432	102,868,296
Return per ordinary share	2.56p	2.48p	3.92p
Capital return
Capital return attributable to ordinary shareholders	£2,121,000	£9,403,000	£21,704,000
Weighted average number of shares in issue during period*	102,052,532	103,447,432	102,868,296
Return per ordinary share	2.08p	9.09p	21.10p
Total return
Total return per ordinary shares	4.64p	11.57p	25.02p
	(Unaudited) Six months to 31 July 2015	(Unaudited) Six months to 31 July 2014	(Audited) Year to 31 January 2015
Net asset value per share
Net assets attributable to shareholders	£183,413,000	£171,067,000	£183,951,000
Number of shares in issue at the period end*	101,486,930	102,574,515	103,063,375
Net asset value per share	180.7p	166.8p	178.5p

During the six months to 31 July 2015 there were 1,795,029 shares bought back into treasury at a cost of £3,340,000. (Six months to 31 July 2014: 1,718,656 shares bought back into treasury at a cost of £2,826,000, twelve months to 31 January 2015 2,956,941 shares bought back into treasury at a cost of £4,963,840). Between 1 August and 21 September 2015, 352,131 ordinary shares of 5p each were bought back into treasury at a cost of £605,983. There have been 218,584 shares issued from treasury during the six months to 31 July 2015. (Six months to 31 July 2014 no shares issued from treasury, twelve months to 31 January 2015 1,727,145 shares issued from treasury.) There have been 724,969 shares cancelled from treasury between 1 August and 21 September 2015. (There were no shares cancelled from treasury during the six months to 31 July 2015 or the year to 31 January 2015).

* Calculated excluding shares held in treasury.

Note 3 

	(Unaudited) Six months to 31 July 2015 £000	(Unaudited) Six months to 31 July 2014 £000	(Audited) Year to 31 January 2015 £000
Income from investments
From listed investments
UK equities	408	481	690
International equities	2,906	2,767	4,519
Other income
Interest on deposits	4	2	4
	3,318	3,250	5,213

During the six months to 31 July 2015, the Company received no capital dividends. (Six months to 31 July 2014 no capital dividends). There were no capital dividends received during the year ended 31 January 2015.

Note 4

	(Unaudited) Six months to 31 July 2015			(Unaudited) Six months to 31 July 2014			(Audited) Year to 31 January 2015
	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Taxation on ordinary activities
Foreign tax	347	-	347	331	-	331	490	-	490

Note 5

	(Unaudited) As at 31 July 2015 £000	(Unaudited) As at 31 July 2014 £000	(Audited) As at 31 January 2015 £000
Investments
Opening valuation	181,798	163,755	163,755
Opening unrealised investment holding gains	(39,584)	(25,304)	(25,304)
Opening cost	142,214	138,451	138,451
Purchases at cost	16,382	21,450	33,337
Disposal proceeds	(19,906)	(25,403)	(37,639)
Net profit on disposal of investments	2,454	5,355	8,065
Disposal at cost	(17,452)	(20,048)	(29,574)
Closing cost	141,144	139,853	142,214
Closing unrealised investment holding gains	39,586	29,625	39,584
Closing valuation	180,730	169,478	181,798
	(Unaudited) As at 31 July 2015 £000	(Unaudited) As at 31 July 2014 £000	(Audited) As at 31 January 2015 £000
Gain on investments
Net profit on disposal of investments	2,454	5,355	8,065
Net gains on revaluation of investments	2	4,321	14,280
	2,456	9,676	22,345

The transaction cost in acquiring investments for the six months to 31 July 2015 was £24,000 (six months to 31 July 2014: £44,000, twelve months to 31 January 2015: £74,000). For disposals, transaction costs were £26,000 for the six months to 31 July 2015 (six month to 31 July 2014: £36,000, twelve months to 31 January 2015: £54,000).

Note 6 

	(Unaudited) As at 31 July 2015 £000	(Unaudited) As at 31 July 2014 £000	(Audited) As at 31 January 2015 £000
Debtors
Dividends receivable	179	295	159
Interest accrued	-	1	-
Taxation recoverable	112	101	124
Other debtors	5	6	6
	296	403	289

Note 7

	(Unaudited) As at 31 July 2015 £000	(Unaudited) As at 31 July 2014 £000	(Audited) As at 31 January 2015 £000
Creditors: amounts falling due within one year
Amount due to brokers	93	333	648
Due to Martin Currie	227	212	228
Other creditors	51	83	73
	371	628	949

Note 8 

	(Unaudited) Six months to 31 July 2015 £000	(Unaudited) Six months to 31 July 2014 £000	(Audited) Year to 31 January 2015 £000
Reconciliation of net return on ordinary before finance costs and taxation to net cash inflow from operating activities
Return on ordinary activities before finance costs and taxation	5,081	12,296	26,224
Adjustments for:
Net gains on investments	(2,456)	(9,676)	(22,345)
Effect of foreign exchange rates	24	(8)	62
Increase in dividends receivable, interest accrued and other debtors	(19)	(137)	-
(Decrease)/increase in other creditors and amounts due to Martin Currie	(23)	12	18
Overseas withholding tax suffered	(335)	(326)	(508)
Net cash inflow from operating activities	2,272	2,161	3,451

Note 9 Interim report

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in S434 - 6 of the Companies Act 2006. The financial information for the six months ended 31 July 2015 has not been audited or reviewed.

The information for the year ended 31 January 2015 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under s498 (2),(3) or (4) of the Companies Act 2006.

Note 10 Fair value hierarchy

Under FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' an entity is required to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following levels:

-       Level a: Quoted prices for identical instruments in active markets.

-       Level b: Prices of a recent transaction for identical instruments.

-       Level c: Valuation techniques that use:

(i): Observable market data; and

(ii): Non-observable market data.

As at 31 July 2015 financial assets in the form of quoted equities held at fair value through profit or loss to the value of £180,730,000 were classified as Level 'a' in the fair value hierachy (31 January 2015: quoted equities to the value of £181,798,000 classified as Level 1 - equivalent to the Level 'a' under FRS 102) with no assets classified as Level 'b', c(i) or c(ii) (31 January 2015: no assets classified as Level 2 or 3 - equivalent to Level 'b', c(i) or c(ii) under FRS 102).

The fair value of the Company's investments in quoted equities have been determined by reference to their quoted bid prices at the reporting date.

Quoted equities included in fair value level 'a' are actively traded on recognised stock exchanges.

Note 11 Post balance sheet event

Since 1 August 2015 352,131 ordinary shares of 5p each have been bought back into treasury at a cost of £605,983, and 724,969 shares have been cancelled from treasury.

 

END

 

 

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