Interim Results
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
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 |
1 |
- |
- |
- |
- |
|
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 |
|
- |
- |
1 |
- |
1 |
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 |
1 |
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) |
||
|
|
|
|
|
|
|
|
||
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 |
|
|
|
|
|
|
|
|
|
|
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 |
1 |
49 |
98 |
|
|
1,249 |
1,928 |
3,749 |
10. Financial 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.
This information is provided by RNS
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