Interim Results

RNS Number : 9746D
North Atlantic Smlr Co Inv Tst PLC
22 September 2008
 



North Atlantic Smaller Companies Investment Trust plc

Half Yearly Financial Report

31 July 2008


Objective of the company and financial highlights


The objective of the Company is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean.

 

 
31 July
2008 (unaudited)
31 January 2008 (audited)
%
Change
Net asset value per 5p Ordinary Share *
 
 
 
 
Basic
1,448 p
1,611 p
(10.1)
 
Diluted
1,121 p
1,209 p
(7.3)
Mid-market price of the 5p Ordinary Shares
838.0 p
1,025.0 p
(18.2)
Discount to diluted net asset value *
25.2%
15.2%
 
Standard & Poor’s 500 Composite Index **
        638.8
    693.4
(7.7)
Russell 2000 **
     360.7
    358.8
0.5 
FTSE All-Share Index
 2,749.2
 3,000.1
(8.4)
US Dollar/Sterling exchange rate
   1.9809
   1.9880
(0.4)


    * Including retained revenue for the period

    **  Sterling adjusted

  Chief executive's review


During the six month period to 31 July 2008, the fully diluted net asset value of the Company fell by 7.3% marginally outperforming the Sterling adjusted Standard and Poor's Composite Index which fell by 7.7%. 


Net income for the period amounted to £264,000 (2007: £972,000). Consistent with long term policy, your directors do not intend to pay a dividend. The Board continued its policy of buying back Convertible Unsecured Loan Stock when the discount is unusually high and some 520,000 units were purchased for cancellation during the six month period.


Listed equities

In the United States, the quoted equity portfolio principally comprised two major holdings: W-H Energy Services Inc. and Sterling Construction Inc. This portfolio performed well following a takeover bid for W-H Energy in July at nearly twice the valuation as at the end of January. 


On the other hand, the United Kingdom listed portfolio, despite the successful takeover of Whatman and a near doubling from cost in Filtronic, was disappointing due to the underperformance of RPC Group, BBA Aviation, Inspired Gaming and Gleeson.


Unlisted equities

The unquoted portfolio benefited from the successful sale of Motherwell Bridge for nearly £20 million, the realisation of the cash in Worldport and a write-up in the valuation of Orthoplastics. Against this, the holding in Jaffer has now been written off and it was necessary to write down the value of the investment in Craegmoor following a disappointing sale price. Hampton Trust was also written down following weakness in the property market. No new private equity investments were made during the period.


Outlook

The current six month period is likely to be very active. Castle Support Services and RPC are conducting strategic reviews. Inspired Gaming, Georgica, Augean and Filtronic have all publicly stated that they are in offer talks. Fayrewood, which is now a cash shell, expects to return money to its shareholders in the near future. Obviously there can be no assurance that the transactions will happen but there is the potential to add very considerably to the Company's net asset value and already substantial cash balances.


The dire forecasts made in the Annual Report for the year ended 31 January 2008, are unfortunately becoming reality. Liquidity within the banking system remains tight and there are few, if any, signs that there will be any improvement over the next few months. The equity market almost certainly has further to fall but opportunities are arising on a selective basis. In fact, of the five new investments made in the UK market since 31 January, four are currently showing profits and the other, a relatively modest loss.


In the circumstances, our policy will be to maximise the value of our holdings, continue to buy back the Convertible Unsecured Loan Stock when it is in the interests of shareholders to do so and lay the foundations so that the Company will fully benefit during the next period of economic growth.


C H B Mills

Chief Executive 

22 September 2008

  Top ten investments

as at 31 July 2008


Company


Fair value

% of



£'000

net assets





Castle Support Services PLC *

UK Quoted on AIM

23,250

10.8

US Treasury Bills 

US Treasury Stock

19,366

9.0

Oryx International Growth Fund Limited *+

UK Listed

16,842

7.9

W-H Energy Services Inc.

USA Quoted

14,274

6.7

Nationwide Accident Repair Services PLC

UK Quoted on AIM

12,000

5.6

Hampton Trust Group 

UK Unquoted 

10,668

5.0

Inspired Gaming Group PLC

UK Listed

8,469

4.0

Trident Private Equity Fund II LP

Cayman Islands Unquoted 

7,418

3.5

BBA Aviation Group PLC

UK Listed

7,395

3.4

Gleeson (MJ) Group PLC

UK Listed

6,456

3.0







126,138

58.9


* Incorporated in Guernsey

+ Oryx is accounted for in the Group accounts as an Associate under the equity method of accounting. The valuation shown above is the Group's share of Oryx's net assets. 


  Interim management report


Investment objective 

The objective of North Atlantic Smaller Companies Investment Trust PLC ('the Company') is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean.

 

Material events 

There were no material events to report during the six month period under review.

 

Material transactions

The Board consider the following transaction that occurred during the half year ended 31 July 2008 to be material: 


In June 2008, the sale of the entire holding in Motherwell Bridge was completed resulting in a profit of £15.6 million.

 

There were no other material transactions during the period ended 31 July 2008.

 

Risk profile 

The two main risks arising from the Group's financial instruments are market price risk and foreign currency risk. The Directors review and agree policies with the Joint Manager, North Atlantic Value LLP, for managing these risks. The policies have remained substantially unchanged in the six months since the year end.


The Group does not have any significant exposure to credit risk arising from any one individual party. Credit risk is spread across a number of companies, each having an immaterial effect on the Group's cash flows, should a default happen.


To support its investment in unquoted companies, the Group may periodically agree to guarantee all or part of the borrowings of investee companies. Provision is made for any costs that may be incurred when the Directors consider it like that the guarantee will crystallise.


The Group's exposure to market price risk comprises mainly movements in the value of the Group's investments. It should be noted that the prices of options tend to be more volatile than the prices of the underlying securities. 


The functional and presentational currency of the Group is Sterling, and therefore, the Group's principal exposure to foreign currency risk comprises investments prices in other currencies, principally US Dollars.

 

The Group invests in equities and other investments that are readily realisable. 

 

Related party transactions

These are listed in note 9 to the accounts

 

CULS 

The Convertible Loan Stock 2013 ('CULS') were issued in units of 5p each. The units are redeemable at par on 31 May 2013, unless previously redeemed, purchased by the Company, or converted at the option of the holder. 


During the period ended 31 July 2008, 20,340 (2007: 994,263) units of CULS were converted into Ordinary Shares of 5p each at the rate of one 5p Ordinary Share for every unit of 5p. Also during the period ended 31 July 2008, the Company purchased 520,000 (2007: 200,000) units of CULS for cancellation at a total cost of £4,707,000 (2007: £2,480,000).


The CULS units are convertible into Ordinary Shares of 5p each at a rate of one Ordinary Share for every 5p unit, one month after despatch of the audited accounts in each of the years 2008 to 2013 inclusive.


Interest is payable to holders of the CULS at a rate of 0.5p gross per 5p unit per annum on 31 January each year.


The amount included above is the fair value of the financial liability element of the CULS as of its date of issue, as adjusted for the effective rate of interest, less interest paid to the unit holders, and less the amount of CULS that has been purchased for cancellation or converted into Ordinary Shares. 


C H B Mills 

Chief Executive


22 September 2008

 

Responsibility statement
 
The Directors confirm to the best of their knowledge that:
 
·         the condensed set of financial statements contained within the half yearly financial report have been prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’; and
 
·         the half yearly financial report includes a fair review of the information required by 4.2.7R and 4.2.8R of the FSA’s Disclosure and Transparency Rules.
 
The half yearly financial report was approved by the Board on 22 September2008 and the above responsibility statement was signed on its behalf by
 
C H B Mills
Chief Executive

 

 

 Consolidated income statement


 
Six months ended
Six months ended
 
31 July
31 July
 
2008
2007
 
(unaudited)
(unaudited)
 
 
Revenue 
 
Capital 
 
Total 
 
Revenue 
 
Capital 
 
Total 
 
£’000 
£’000 
£’000 
£’000 
£’000 
£’000 
 
investments
 
 
 
 
 
 
(Losses)/gains on investments
 
(17,117)
 
(17,117)
 
 
21,600 
 
21,600 
Exchange differences
(207)
(207)
(442)
(442)
 
 
net investment result
 
 
(17,324)
 
(17,324)
 
 
21,158 
 
21,158 
 
income
 
2,200 
 
 
2,200 
 
3,091 
 
 
3,091 
 
expenses
 
 
 
 
 
 
Investment management fee
(1,238)
(11)
(1,249)
(1,265)
(663)
(1,928)
Other expenses
(351)
(351)
(644)
(644)
Share based remuneration
(90)
(90)
(127)
(127)
Interest payable and similar charges
(257)
(257)
(83)
(83)
 
 
total expenses
 
(1,936)
 
(11)
 
(1,947)
 
(2,119)
 
(663)
 
(2,782)
 
share of net return of associate
 
 
 
 
(2,063)
 
 
(2,063)
 
 
 
 
71 
 
 
71 
 
profit before taxation
 
264 
 
(19,398)
 
(19,134)
 
972 
 
20,566 
 
21,538 
 
Taxation
 
 
 
 
 
 
 
transfer to reserves
 
264 
 
(19,398)
 
(19,134)
 
972 
 
20,566 
 
21,538 
 
attributable to:
 
 
 
 
 
 
Equity holders of the parent
264 
(19,398)
(19,134)
1,123 
20,245 
21,368 
Minority interest
 
(151)
321 
170 
 
 
264 
 
(19,398)
 
(19,134)
 
972 
 
20,566 
 
21,538 
 
return per ordinary share (note 4):
 
 
 
 
 
 
Basic
 
 
(129.46)p
 
 
153.52p
Diluted
 
 
(98.27)p
 
 
107.85p


The total column of this statement represents the Group's income statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies (''AIC'').


All items in the above statement derive from continuing operations.

  Consolidated income statement (continued)

 

Year ended
 
31 January
 
2008
 
(audited)
 
 
Revenue 
 
Capital 
 
Total 
 
£’000 
£’000 
£’000 
 
 
 
 
 
investments
3,300 
3,300 
Gains on investments
(540)
(540)
Exchange differences
 
 
 
2,760 
 
2,760 
 
net investment result
 
5,208 
 
 
5,208 
 
income
 
 
 
expenses
(2,512)
(1,237)
(3,749)
Investment management fee
(954)
(954)
Other expenses
(255)
(255)
Share based remuneration
 
(366)
 
 
(366)
Interest payable and similar charges
 
 
(4,087)
 
(1,237)
 
(5,324)
 
total expenses
 
 
 
 
(4,223)
 
 
(4,223)
 
share of net return of associate
 
1,121 
 
(2,700)
 
(1,579)
 
profit before taxation
 
 
 
 
Taxation
 
1,121 
 
(2,700)
 
(1,579)
 
transfer to reserves
 
 
 
attributable to:
1,272 
(3,021)
(1,749)
Equity holders of the parent
(151)
321 
170 
Minority interest
 
1,121 
(2,700)
(1,579)
 
 
 
 
 
return per ordinary share (note 4):
 
 
(12.19)p
Basic
 
 
(8.73)p
Diluted
 
 
 
 



The total column of this statement represents the Group's income statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies (''AIC'').


All items in the above statement derive from continuing operations.

  Consolidated statement of changes in equity




Share capital


CULS reserve

Share

options

reserve

Share

premium

account

Capital

reserve -

realised


£'000

£'000

£'000

£'000

£'000

Six months ended 31 July 2008 (unaudited)






31 January 2008

739 

34 

1,341 

629 

180,033 

Total recognised income and expenses for the period






13,258 

Premium paid on repurchase of CULS

(4)

(4,680)

Share Option expense

90 

Arising on conversion of CULS


31 July 2008


740 


30 


1,431 


629 


188,611 







Year ended 31 January 2008 (audited)






31 January 2007

689 

43 

1,086 

629 

183,887 

Total recognised income and expenses for the period






4,802 

Premium paid on repurchase of CULS

(2,475)

Share Option expense

255 

Arising on deconsolidation of AOT

(6,181)

Arising on conversion of CULS

50 

(9)

31 January 2008


739 


34 


1,341 


629 


180,033 







Six months ended 31 July 2007 (unaudited)






31 January 2007

689 

43 

1,086 

629 

183,887 

Total recognised income and expenses for the period




- 



(2,741)

Share Option expense

127 

Arising on deconsolidation of AOT 

(6,181)

Arising on conversion of CULS

50 

(9)

Premium paid on repurchase of CULS

(2,475)

31 July 2007


739 


34 


1,213 


629 


172,490 








  Consolidated statement of changes in equity (continued)


Capital reserve- unrealised


Revenue reserve



Total


Minority interest



Total


£'000

£'000

£'000

£'000

£'000







Six months ended 31 July 2008 (unaudited)

58,128 

(2,930)

237,974

237,974 

31 January 2008


(32,656)


264 


(19,134)



(19,134)

Total recognised income and expenses for the period

(4,684)

(4,684)

Premium paid on repurchase of CULS

90 

90 

Share Option expense

Arising on conversion of CULS


25,472 


(2,666)


214,247 



214,247 


31 July 2008












Year ended 31 January 2008 (audited)

60,476 

(4,908)

241,902 

7,740 

249,642 

31 January 2007


(7,823)


1,272 


(1,749)


170 


(1,579)

Total recognised income and expenses for the period

(2,475)

(2,475)

Premium paid on repurchase of CULS

255 

255 

Share Option expense

5,475 

706 

(7,910)

(7,910)

Arising on deconsolidation of AOT

-

41 

41 

Arising on conversion of CULS


58,128 


(2,930)


237,974



237,974 

31 January 2008












Six months ended 31 July 2007 (unaudited)

60,476 

(4,908)

241,902 

7,740 

249,642 

31 January 2007


22,986 


1,123 


21,368 


170 


21,538 

Total recognised income and expenses for the period

127 

127 

Share Option expense

5,475 

706 

(7,910)

(7,910)

Arising on deconsolidation of AOT 

41 

41 

Arising on conversion of CULS

(2,475)

(2,475)

Premium paid on repurchase of CULS


88,937 


(3,079)


260,963 


-


260,963 

31 July 2007








  Consolidated balance sheet



31 July 

2008

(unaudited)

31 January 2008

(audited)

31 July 

2007

(unaudited) 


£'000

£'000

£'000

Non current assets




Investments at fair value through profit or loss

188,574 

231,820 

227,489 

Investments accounted for using the equity method

16,842 

18,928 

24,077 


205,416 

250,748 

251,566 





Current assets




Investments held for trading in Subsidiary Companies

308 

705 

Trade and other receivables

4,386 

4,169 

3,823 

Cash and cash equivalents

13,533 

8,504 

13,054 



17,920 


12,981 


17,582 


Total assets


223,336


263,729 


269,148 





Current liabilities




Bank loans and overdrafts

(7,285)

(9,356)

(6,495)

Investments held for trading- -derivatives

(122)

(612)

(217)

Trade and other payables

(1,513)

(15,595)

(1,281)



(8,920)


(25,563)


(7,993)


Total assets less current liabilities


214,416 


238,166 


261,155 





Non current liabilities




CULS

(169)

(192)

(192)



(169)


(192)


(192)

Total liabilities


(9,089)


(25,755)


(8,185)

Net assets


214,247 


237,974 


260,963 


  Consolidated balance sheet (continued)



31 July 

2008

(unaudited)

31 January 2008

(audited)

31 July 

2007

(unaudited) 


£'000

£'000

£'000

Represented by:




Share capital

740 

739 

739 

Equity component of CULS

30 

34 

34 

Share options reserve

1,431 

1,341 

1,213 

Share premium account

629 

629 

629 

Capital reserve - realised

188,611 

180,033 

172,490 

Capital reserve - unrealised

25,472 

58,128 

88,937 

Revenue reserve 

(2,666)

(2,930)

(3,079)

Equity attributable to equity holders 

  of the parent


214,247


237,974 


260,963 


Minority interest





Total equity


214,247 


237,974 


260,963









Net asset value per ordinary share (note 5):




Basic

1,448p

1,611p

1,766p

Diluted

1,121p

1,209p

1,322p






  Consolidated cash flow statement



Six months

ended 31 July 

2008

(unaudited)

Six months

ended 31July

 2007

(unaudited)

Year ended

31 January 

2008

(audited) 


£'000

£'000

£'000

Cash flows from operating activities




Investment income received 

1,892 

2,438 

4,147 

Bank deposit interest received

161 

380 

690 

Other income

78 

18 

78 

Sale of investments by dealing Subsidiary

(249)

(220)

Investment management fees paid

(2,486)

(2,501)

(3,772)

Other cash payments

(378)

(305) 

(705)


Cash expended from operations


(733)


(219)


(218)

Bank interest paid

(280)

(39)

(282)

CULS interest paid

(23)


Net cash outflow from operating activities


(1,013)


(258)


(87)


Cash flows from investing activities




Purchases of investments

(85,219)

(85,702)

(171,086)

Sales of investments

97,803 

89,036 

167,098 


Net cash inflow/(outflow) from investing activities



12,584 



3,334 



(3,988)


Cash flows from financing activities




Repayment of fixed term borrowings

(3,506)

(364)

(554)

Increase in fixed term borrowings

1,108 

4,713 

7,113 

Repurchase of CULS for cancellation

(3,995)

(2,485)

(2,485)


Net cash inflow/(outflow) from financing activities



(6,393)



1,864 



4,074 


Increase/(decrease) in cash and cash equivalents for the period


5,178 


4,940 


(1)


Cash and cash equivalents at the start of the period


8,504 


9,497 


9,497 

Arising on deconsolidation of AOT

(1,091)

(1,091)

Revaluation of foreign currency balances

(149)

(292)

99 


Cash and cash equivalents at the end of

  the period



13,533 



13,054 



8,504 


  Notes 


1. Basis of preparation

North Atlantic Smaller Companies Investment Trust PLC (''NASCIT'') is a Company incorporated and registered in England and Wales under the Companies Acts 1948 to 1967.


The condensed consolidated interim financial information for the six months ended 31 July 2008 has been prepared in accordance with IAS 34 'Interim Financial Reporting'. They do not include all financial information required for full annual financial statements. They have been prepared using accounting policies adopted in the audited financial for the year ended 31 January 2008. Those financial statements were prepared in accordance with International Financial Reporting Standards. 


The condensed consolidated interim financial information consolidate the financial statements of the Company and its wholly owned Subsidiary, Consolidated Venture Finance Limited, for the six months ended 31 July 2008.


2. Performance fees

A Performance Fee is only payable if the investment portfolio outperforms the Sterling adjusted Standard & Poor's 500 Composite Index at the end of each financial year and is limited to a maximum of 0.5% of Shareholders' Funds.


In accordance with the Statement of Recommended Practice (''SORP'') for investment trust companies, an amount is included in these financial statements for the Performance Fee that could be payable based on investment performance to 31 July 2008.


At that date a Performance fee of £11,000, including irrecoverable VAT, has been accrued for in the accounts (31 July 2007: £663,000 including irrecoverable VAT; 31 January 2008: £1,237,000 including irrecoverable VAT) and is allocated 100% to capital.


3. Taxation 

The Company has an effective tax rate of 0%. The estimated effective tax rate is 0% as investment gains are exempt from tax owing to the Company's status as an Investment Trust and there is expected to be an excess of management expenses over taxable income and thus there is no charge for corporation tax.

  Notes (continued)


4.Return per ordinary share


Revenue

Capital


*Net

return


Ordinary

Per

Share

*Net

return


Ordinary

Per

Share


£'000 

Shares

pence

£'000 

Shares

pence

Six months ended 31 July 2008 (unaudited)






Basic return per Share

264 

14,779,454 

1.79 

(19,398)

14,779,454 

(131.25)

Options conversion**

268,431 


268,431 


CULS***

22 

4,401,141 


4,401,141 



Diluted return per Share


286 


19,449,026 


1.47 


(19,398)


19,449,026


(99.74)

Six months ended 31 July 2007 (unaudited)






Basic return per Share

1,123 

13,918,275 

8.07 

20,245 

13,918,275 

145.46

Options conversion**

390,770 


390,770 


CULS***

27 

5,529,579 


5,529,579 


Diluted return per Share


1,150 


19,838,624 


5.80 


20,245 


19,838,624 


102.05

Year ended 31 January 2008 

(audited)






Basic return per Share

1,272 

14,350,263 

8.86 

(3,021)

14,350,263 

(21.05)

Options conversion**

377,878 


377,878 


CULS***

25 

5,019,049


5,019,049 



Diluted return per Share


1,297 


19,747,190 


6.57 


(3,021)


19,747,190 


(15.30)








Basic return per Ordinary Share has been calculated using the weighted average number of Ordinary Shares in issue during the period.
 
*           Net return on ordinary activities attributable to Ordinary Shareholders.
 
**          Excess of the total number of potential Shares on option conversion over the number that could be issued at average market price, as calculated in accordance with IAS 33: Earnings per Share.
 
***        CULS assumed converted as average share price during the period was greater than the conversion price.



Notes (continued)


4.return per ordinary share (continued)


Total

*Net

return


Ordinary

Per

Share

£'000 

Shares

pence





six months ended 31 July 2008 

(unaudited)

(19,134)

14,779,454 

(129.46)

Basic return per Share

268,431 


Options conversion**

22 

4,401,141 


CULS***


(19,112)


19,449,026 


(98.27)


Diluted return per Share




six months ended 31 July 2007 

(unaudited)

21,368 

13,918,275 

153.53 

Basic return per Share

390,770 


Options conversion**

27 

5,529,579 


CULS***

21,395 

19,838,624 

107.85 

Diluted return per Share




year ended 31 January 2008 

(audited)

(1,749)

14,350,263 

(12.19)

Basic return per Share

377,878 


Options conversion**

25 

5,019,049 


CULS***


(1,724)


19,747,190 


(8.73)


Diluted return per Share












Basic return per Ordinary Share has been calculated using the weighted average number of Ordinary Shares in issue during the period.
 
*           Net return on ordinary activities attributable to Ordinary Shareholders.
 
**          Excess of the total number of potential Shares on option conversion over the number that could be issued at average market price, as calculated in accordance with IAS 33: Earnings per Share.
 
***        CULS assumed converted as average share price during the period was greater than the conversion price.

Notes (continued)
 
5. net asset value per ordinary share
The basic net asset value per Ordinary Share is based on net assets of £214,247,000(31 January 2008: £237,974,000; 31 July 2007: £260,963,000) and on 14,795,548 Ordinary Shares (31 January 2008: 14,775,208; 31 July 2007: 14,775,208) being the number of Ordinary Shares in issue at the period end.
 
The diluted net asset value per Ordinary Share is calculated on the assumption that the outstanding 2013 CULS are fully converted at par and that all 1,030,000 (31 January 2008: 1,030,000; 31 July 2007: 1,030,000) Share Options were exercised at the prevailing exercise prices, giving a total of 19,802,052 issued Ordinary Shares (31 January 2008: 20,322,052; 31 July 2007: 20,322,052).


6. debenture loan - convertible unsecured loan stock ('CULS') 2013

On 18 April 2008 50,000 CULS units were purchased for cancellation at a rate of 1,000p per unit.


On 16 June 2008 250,000 CULS units were purchased for cancellation at a rate of 910p per unit.


On 27 June 2008 100,000 CULS units were purchased for cancellation at a rate of 915p per unit.


On 21 July 2008 35,000 CULS units were purchased for cancellation at a rate of 850p per unit.


On 30 July 2008 85,000 CULS units were purchased for cancellation at a rate of 835p per unit.


On 23 June 2008 20,340 CULS units were converted into 20,340 Ordinary Shares of 5p each at the rate of one 5p Ordinary Share for every unit of 5p.


At 31 July 2008 3,976,504 CULS units were remaining.


7. bank loans

The Company's multi-currency loan Revolving Credit Facility of up to £9 million was due to expire on 31 July 2008. During the period the Company negotiated an extension on this facility to 31 July 2009. 


During the period the Company repaid its £2,400,000 loan, and drew down and repaid €1,400,000. The Company currently has 8 million Euros and 2 million Canadian Dollars drawn down which are due for repayment on 25 September 2008. 

  

8. Reconciliation of total return from ordinary activities before finance costs and taxation to cash expended from operations



Six months 

ended 31 July

2008

(unaudited)

Six months 

ended 31 July

2007

(unaudited)

Year ended

31 January

2008

(audited)


£'000

£'000

£'000

Total return from ordinary activities before finance costs and taxation


(18,877)


21,621 


(1,213)

Gains on investments

17,324 

(21,158)

(2,760)

Share based remuneration

90 

127 

255 

Share of net return of associate

2,063 

(71) 

4,223 

Dividends and interest reinvested

(433)

(338)

(705)

Decrease in debtors and accrued income

206 

118 

70 

Changes relating to investments of dealing Subsidiaries


305 


(303)


(15)

(Decrease)/increase in creditors and accruals

(1,411)

(215)

363 

Tax on investment income


cash expended from operations


(733)


(219)


218














9. Related party transactions 

The Joint Manager, North Atlantic Value LLP, is regarded as a related party of the Company. The amounts payable to the Joint Manager and Growth Financial Services Limited ('GFS') in respect of investment management for the six months to 31 July 2008 are as follows:



Six months 

ended 31 July

2008

(unaudited)

Six months 

ended 31 July

2007

(unaudited)

Year ended

31 January

2008

(audited)


£'000

£'000

£'000

Annual fee

1,238 

1,233 

2,454 

Performance fee

10 

646 

1,197 

Irrecoverable VAT thereon

49 

98 



1,249 


1,928 


3,749 


In addition to the management fees disclosed above, North Atlantic Value LLP is also paid:
 
-          an activity fee of £225 per transaction as reimbursement of custodian and related transaction costs incurred on the Company’s behalf.
-          an investment management related fee of £100,000 per annum.


10Financial information 

The financial information contained in this Half Yearly Report does not constitute full Statutory accounts as defined in Section 240 of the Companies Act 1985. The financial information for the periods ended 31 July 2008 and 31 July 2007 is not a financial year and has not been audited. The statutory accounts for the financial year ended 31 January 2008 have been delivered to the Registrar of Companies and received an Audit Report which was unqualified, did not included a reference to any matters to which the Auditors drew attention by way of emphasis without qualifying the Report and did not contain statements under Section 237(2) and (3) of the Companies Act 1985.

  

Shareholder information
 
Financial calendar      Preliminary results                     May
                                    Annual Report                            May
                                    Annual General Meeting             June
                                    Half Yearly figures announced     September
                                    Half Yearly Report posted           September
 
Share price                  The Company’s mid-market share price and CULS price are quoted daily in the Financial Times appearing under ‘’Investment Companies’’.
 
                                    They also appear on:
 
                                    Reuters:                                    Convertible Loan Stock NASp.L
                                    Bloomberg                                 NAS.LN
                                    SEAQ Ordinary Shares:              NAS
                                    Trustnet:                                    www.trustnet.ltd.uk
 
Net asset value            The latest net asset value for the Company can be found on the North Atlantic Value LLP website: www.navalue.co.uk
 
Share dealing              Investors wishing to purchase more Ordinary Shares or dispose of all or part of their holding may do so through a stockbroker. Many banks also offer this service.
 
                                    The Company’s registrars are Capita Registrars. In the event of any queries regarding your holding of shares, please contact the registrars on: 0870 458 4577, or by email on ssd@capitaregistrars.com
 
                                    Changes of name or address must be notified to the registrars in writing at:
 
                                                            Capita Registrars
                                                            The Registry
                                                            34 Beckenham Road
                                                            Beckenham
                                                            Kent BR3 4TU


Shareholder information (continued)
 
                                    Directors
                                    E F Gittes (Chairman)
                                    C H B Mills (Chief Executive)
                                    K Siem
                                    C L A Irby
                                    O R Grace
                                    P E Swinstead
 
                                    Joint Manager
                                    North Atlantic Value LLP
                                    (Authorised and regulated by the Financial Services Authority)
                                    Ground Floor
                                    Ryder Court
                                    14 Ryder Street
                                    London SW1Y 6QB
                                    Telephone: 020 7747 5678
 
                                    Company Secretary and Registered Office
                                    J O Hambro Capital Management Limited
                                    Ground Floor
                                    Ryder Court
                                    14 Ryder Street
                                    London SW1Y 6QB
                                    Telephone: 020 7747 5682
 
                                    Registrars
                                    Capita Registrars
                                    The Registry
                                    34 Beckenham Road
                                    Beckenham
                                    Kent BR3 4TU
 
                                    Auditors
                                    Grant Thornton UK LLP
                                    30 Finsbury Square
                                    London EC2P 2YU
 
                                    Bankers
                                    Allied Irish Bank, p.l.c.
                                    St Helen’s
                                    1 Undershaft
                                    London EC3A 8AB

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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