Preliminary Results

RNS Number : 0571I

Standard Life Euro Pri Eqty Tst PLC

07 December 2015

 

7 December 2015

STANDARD LIFE EUROPEAN PRIVATE EQUITY TRUST PLC

RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2015

Highlights

·     Company's net asset value total return for the year ended 30 September 2015 was 11.9%.

·     Net asset value per ordinary share ("NAV") at 30 September 2015 rose 9.4% to 281.6p (30 September 2014 - 257.4p). The increase in NAV during the period included 9.8% of net realised gains and income from the Company's portfolio of 46 private equity fund interests, 7.1% of unrealised gains on a constant exchange rate basis, 4.1% of negative exchange rate movements on the portfolio, and the payment of dividends during the year ended 30 September 2015.

·     Actual NAV of 281.6p compares to a previously estimated NAV at 30 September 2015 of 278.7p announced on 14 October 2015.  Closing mid-market price of the Company's ordinary shares on 30 September 2015 was 214.0p, a decrease of 7.0% over the year and a discount of 24.0% to NAV.

·     Recommended final dividend of 3.5p per ordinary share, which together with the interim dividend of 1.75p paid in July 2015, makes a total for the year of 5.25p (year ended 30 September 2014 - 5.0p). It remains the Board's intention, subject to unforeseen circumstances, to maintain, at least, the real value of the Company's dividends going forward.

·     At the year end the Company's net assets were £438.7 million. In preparing the Company's year end valuation, 100% by value of the portfolio was valued by the relevant fund manager at 30 September 2015.

·     Distributions received by, and draw downs from, the portfolio during the year rose to £106.7 million and £63.1 million respectively. In addition, the Company acquired through the secondary market five private equity fund interests for £33.4 million in aggregate and sold one fund interest for £21.7 million. Accordingly, investment activity generated £31.9 million of positive cashflow during the year.

·     During the year the Company acquired a total of 3.146 million ordinary shares through a series of share buy-back transactions for £6.9 million. The ordinary shares were acquired at an average price of 218.5p and at an average discount to the prevailing NAV of 16.6%, resulting in a gain of £1.4 million.

·     Company had liquid resources of £69.4 million at 30 September 2015, comprising a cash balance of £32.1 million and £37.3 million invested at value (£39.2 million at cost) in UK and European equity index tracker funds. The Company has an undrawn £80 million syndicated revolving credit facility provided by Citi and Societe Generale that expires in December 2020.

·     Company made four new fund commitments during the year with commitments of €35.0 million to PAI Europe VI, £28.0 million to Exponent Private Equity Partners III, €35.0 million to Bridgepoint Europe V and €30.0 million to Equistone Partners Europe V.

·     Company had £245.8 million of outstanding commitments at 30 September 2015. After undertaking a detailed review, the Manager continues to believe that up to £50 million of the Company's existing outstanding commitments are unlikely to be drawn.

·     During the period from 30 September 2015 to 3 December 2015 the Company received distributions of £20.2 million and funded £4.7 million of draw downs. The Company is in advanced negotiations regarding the acquisition of a secondary fund interest.

·     At 3 December 2015 the Company had a cash balance of £45.8 million and had £39.6 million at value (£39.2 million at cost) invested in UK and European equity index tracker funds. At 3 December 2015 the Company had outstanding commitments of £234.3 million.

For further information please contact:-

Peter McKellar and Roger Pim of SL Capital Partners LLP (on 0131 245 0055)

Chairman's Statement

Results and performance

The last year has continued to see the Company benefit from a strong mergers and acquisitions market in Europe, with significant cashflows to and from the Company and meaningful realised and unrealised gains, before adjusting for unrealised foreign exchange losses. This has been against a background of volatile listed equity markets and a weakening euro. Including dividends paid, the NAV total return for the year was 11.9%. At 30 September 2015 the Company's net assets were £438.7 million (30 September 2014 - £409.1 million).

For the year ended 30 September 2015 the Company's NAV rose by 9.4% to 281.6p, from 257.4p at 30 September 2014. The increase in NAV during the period comprised 9.8% of net realised gains and income from the Company's portfolio of 46 private equity fund interests and 7.1% of unrealised gains on a constant exchange rate basis, partially offset by 4.1% of negative exchange rate movements on the portfolio, 0.8% of fees, costs and other items, and the payment of dividends during the year ended 30 September 2015.

The closing mid-market price of the Company's ordinary shares on 30 September 2015 was 214.0p, a decrease of 7.0% over the year and a discount of 24.0% to NAV. This compares to a fall in the FTSE All-Share Index of 5.6% and a movement in the MSCI Europe Index (in euros) of 0.0% over the year.

Subject to shareholder approval at the forthcoming Annual General Meeting, this year's proposed final dividend of 3.5p will be paid on 29 January 2016 to shareholders on the Company's share register at 18 December 2015. Together with the interim dividend of 1.75p paid in July 2015, this makes a total for the year of 5.25p (year ended 30 September 2014 - 5.0p). It remains the Board's intention, subject to unforeseen circumstances, to maintain, at least, the real value of the Company's dividends going forward.

The Company is also introducing a Dividend Reinvestment Plan. This will give shareholders the option of reinvesting their dividend payments to buy more ordinary shares in the Company and will be available for the final dividend in January 2016. An accompanying letter and an application form are enclosed with the Company's annual report and accounts.

Private equity is a long-term asset class and should be viewed over equivalent time periods.  Over the last ten years the Company's NAV and share price, both on an annualised total return basis, rose by 8.0% and 4.5% respectively, while the FTSE All-Share Index and the MSCI Europe Index (in euros), on a similar total return basis, were up 5.6% and 4.7% respectively.

Investment activity

The last year saw a broadly similar number, but an increased value, of new private equity investments completed in Europe compared to the prior year, with more large/mega transactions being announced. The volume and value of all new buy-out transactions completed in the European private equity market during the year ended 30 September 2015 was 534 transactions and €114.0 billion (year ended 30 September 2014 -  538 and €85.8 billion respectively). Private equity managers are reporting a healthy new deal pipeline, set against a background of strong mergers and acquisitions activity in Europe. The exit environment for private equity backed companies remains robust, with corporates in particular being active buyers. Average pricing multiples for new transactions appear to have risen slightly, while total debt multiples remain in line with the prior year.

During the year the Company witnessed an increase in cashflows to and from its portfolio. The Company received distributions from its fund interests of £106.7 million and paid £63.1 million in draw downs (year ended 30 September 2014 - distributions of £101.8 million and draw downs of £47.8 million). The distributions received by the Company generated net realised gains and income of £51.6 million, equivalent to an average return on the acquisition cost of the realised investments of 1.9 times (year ended 30 September 2014 - 2.0 times). In addition, the Company realised a book loss of £12.0 million on the liquidation of two older funds, the Candover 2001 Fund and Apax Europe IV, where all of the underlying investments had been realised. Importantly, the book losses had been fully provided for previously in the Company's valuation of these fund interests.

Reflecting the objective of capital efficiency in the use of the Company's capital resources and the continuing cash inflow, the Company undertook five secondary fund purchases. The Company acquired an original commitment of €12.9 million to Advent Global Private Equity VI in December 2014, an original commitment of €15.0 million to Cinven Fourth Fund in December 2014, an original commitment of €15.0 million to Nordic Capital Fund VII in February 2015, an original commitment of €5.0 million to Permira Europe III in March 2015 and an original commitment of €8.0 million to Permira IV in March 2015. Finally, the Company sold its entire fund interest in Apax Europe VII in October 2014. Details of all of the secondary transactions are provided in the Manager's Review.

In addition, in a series of transactions the Company acquired a total of 3.146 million ordinary shares through share buy-back transactions for £6.9 million. The ordinary shares were acquired at an average price of 218.5p and at an average discount to the prevailing NAV of 16.6%, resulting in a gain of £1.4 million. The ordinary shares acquired have been cancelled. The Board views the buying in of ordinary shares as part of its strategy in relation to capital efficiency and buy-backs are compared to new fund commitments, secondary fund purchases and the payment of dividends.

After taking account of the above transactions, management fees, dividends and costs, the Company was £9.0 million cashflow positive during the year. At 30 September 2015 the Company had a cash balance of £32.1 million and had £37.3 million invested at value (£39.2 million at cost) in UK and European equity index tracker funds. On 18 September 2015 the Company entered into a new £80 million syndicated revolving credit facility, provided by Citi and Societe Generale, to replace its £80 million debt facility provided by The Royal Bank of Scotland plc and Citi. The terms of the new facility are more favourable than the terms of the previous facility. The new facility expires in December 2020.

In light of the Company's strong liquidity, the quantum of outstanding commitments that the Manager expects to be drawn down over time and the quality of new fund offerings, the Company made four new fund commitments during the year. These were commitments of €35.0 million to PAI Europe VI, £28.0 million to Exponent Private Equity Partners III, €35.0 million to Bridgepoint Europe V and €30.0 million to Equistone Partners Europe V. The Company had £245.8 million of outstanding commitments at 30 September 2015. After undertaking a detailed review, the Manager continues to believe that up to £50 million of the Company's existing outstanding commitments are unlikely to be drawn.

Valuation

At 30 September 2015 the Company's portfolio comprised 46 private equity fund interests. The value of this portfolio was £369.0 million, of which net unrealised gains arising during the year were £12.1 million.

Unrealised gains on a constant exchange rate basis were £28.6 million. 100.0% by value of the portfolio was valued by the relevant fund manager at 30 September 2015. In undertaking the valuations the fund managers followed the International Private Equity and Venture Capital Valuation Guidelines. In so doing, the principal valuation methodology is to use listed comparable valuation multiples.

Negative foreign exchange movements, which principally arose from the 5.7% depreciation in the euro relative to sterling during the year, were £16.5 million. This followed a 7.3% deprecation in the euro relative to sterling in the previous financial year. Once again, the depreciation in the euro had a material impact on the Company's otherwise strong NAV performance.

Recent activity

During the period from 30 September 2015 to 3 December 2015 the Company received distributions of £20.2 million and funded £4.7 million of draw downs. The Company is in advanced negotiations regarding the purchase of a secondary fund interest.

At 3 December 2015 the Company had a cash balance of £45.8 million and had £39.6 million at value (£39.2 million at cost) invested in UK and European equity index tracker funds. At 3 December 2015 the Company had outstanding commitments of £234.3 million.

Outlook

The managers of the largest underlying funds in the Company's portfolio continue to report earnings uplifts across most of their portfolio companies, notwithstanding a more challenging global macro-economic environment. The Company is benefiting from a strong mergers and acquisitions market in Europe and, subject to exogenous shocks, the Manager would expect this to continue.

Taken together, this should result in significant distribution and draw down activity across the portfolio and further realised and unrealised gains being generated. This would allow the Company to build on the solid performance achieved over the last three years.

Edmond Warner, OBE

Chairman

4 December 2015

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the Company relate to the Company's investment activities and include the following:

•        market risk;

•        currency risk;

•        over-commitment risk;

•        liquidity risk;

•        credit risk;

•        interest rate risk; and

•        operating and control environment risk

Information on each of these risks, and an explanation of how they are managed, is contained in the Company's Annual Report.

DIRECTORS' RESPONSIBILITY STATEMENT

The directors are responsible for preparing the Annual Report, the Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

•      select suitable accounting policies and then apply them consistently;

•      make judgements and accounting estimates that are reasonable and prudent;

•      state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements respectively; and

•      prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements and the Directors' Remuneration Report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors consider that the annual report and accounts, taken as a whole, is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.  In reaching this conclusion the directors have assumed that the reader of the annual report and accounts has a reasonable level of knowledge of the investment industry.

The directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the directors confirm that, to the best of their knowledge:

• the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

• the directors' report includes 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 Standard Life European Private Equity Trust PLC

Edmond Warner OBE

Chairman

4 December 2015

INCOME STATEMENT (audited)

for the year ended 30 September 2015

	Revenue	Capital	Total
	£'000	£'000	£'000
Gains on investments	-	40,346	40,346
Currency gains	-	495	495
Income from investments	11,917	-	11,917
Investment management fee	(342)	(3,082)	(3,424)
Administrative expenses	(715)	-	(715)
	_________	_________	_________
NET RETURN ON ORDINARY ACTIVITIES
BEFORE FINANCE COSTS AND TAXATION	10,860	37,759	48,619
Finance costs	(127)	(1,141)	(1,268)
	_________	_________	_________
NET RETURN ON ORDINARY ACTIVITIES
BEFORE TAXATION	10,733	36,618	47,351
Taxation	(1,784)	1,627	(157)
	_________	_________	_________
NET RETURN ON ORDINARY ACTIVITIES
AFTER TAXATION	8,949	38,245	47,194
	_________	_________	_________
NET RETURN PER ORDINARY SHARE	5.69p	24.35p	30.04p
	_________	_________	_________

The Total column of this statement represents the profit and loss account of the Company.

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

No operations were acquired or discontinued in the year.

A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement.

The dividend which has been recommended based on this Income Statement is 5.25p (2014 - 5.0p) per ordinary share.

INCOME STATEMENT (audited)

for the year ended 30 September 2014

	Revenue	Capital	Total
	£'000	£'000	£'000
Gains on investments	-	23,236	23,236
Currency losses	-	(2,085)	(2,085)
Income from investments	12,039	-	12,039
Investment management fee	(328)	(2,952)	(3,280)
Administrative expenses	(657)	-	(657)
	_________	_________	_________
NET RETURN ON ORDINARY ACTIVITIES
BEFORE FINANCE COSTS AND TAXATION	11,054	18,199	29,253
Finance costs	(104)	(934)	(1,038)
	_________	_________	_________
NET RETURN ON ORDINARY ACTIVITIES
BEFORE TAXATION	10,950	17,265	28,215
Taxation	(1,788)	1,432	(356)
	_________	_________	_________
NET RETURN ON ORDINARY ACTIVITIES
AFTER TAXATION	9,162	18,697	27,859
	_________	_________	_________
NET RETURN PER ORDINARY SHARE	5.69p	11.60p	17.29p
	_________	_________	_________

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (audited)

For the year ended 30 September 2015		Share		Capital
	Share	premium	Special	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 October 2014	318	86,485	62,947	83	242,135	17,134	409,102
Total recognised gains	-	-	-	-	38,245	8,949	47,194
Buy back of ordinary shares	(6)	-	(6,923)	6	-	-	(6,923)
Dividends paid	-	-	-	-	-	(10,633)	(10,633)
	______	_______	______	_______	________	_______	_______
Balance at 30 September 2015	312	86,485	56,024	89	280,380	15,450	438,740
	______	_______	______	_______	________	_______	_______
For the year ended 30 September 2014		Share		Capital
	Share	premium	Special	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 October 2013	330	85,594	75,519	70	223,438	16,214	401,165
Total recognised gains	-	-	-	-	18,697	9,162	27,859
Conversion of founder A shares	1	891	-	-	-	-	892
Buy back of ordinary shares	(13)	-	(12,572)	13	-	-	(12,572)
Dividends paid	-	-	-	-	-	(8,242)	(8,242)
	______	_______	______	_______	________	_______	_______
Balance at 30 September 2014	318	86,485	62,947	83	242,135	17,134	409,102
	______	_______	______	_______	________	_______	_______

BALANCE SHEET (audited)

		As at		As at
		30 September		30 September
		2015		2014
		£'000	£'000	£'000	£'000
NON-CURRENT ASSETS
Investments at fair value through profit or loss			406,332		387,623
CURRENT ASSETS
Debtors		729		473
Money market funds		-		16,363
Cash and short term deposits		32,099		5,212
		_________		_________
		32,828		22,048
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR		(420)		(569)
		_________		_________
NET CURRENT ASSETS			32,408		21,479
			_________		_________
TOTAL ASSETS LESS CURRENT LIABILITIES			438,740		409,102
			_________		_________
CAPITAL AND RESERVES
Called up share capital			312		318
Share premium account			86,485		86,485
Special reserve			56,024		62,947
Capital redemption reserve			89		83
Capital reserves			280,380		242,135
Revenue reserve			15,450		17,134
			_________		_________
TOTAL SHAREHOLDERS' FUNDS			438,740		409,102
			_________		_________
NET ASSET VALUE PER EQUITY SHARE			281.6p		257.4p
			_________		_________

CASHFLOW STATEMENT (audited)

		For the year		For the year
		ended 30 September		ended 30 September
		2015		2014
		£'000	£'000	£'000	£'000
NET CASH INFLOW FROM OPERATING ACTIVITIES			7,860		7,823
SERVICING OF FINANCE
Interest paid		(822)		(1,038)
Arrangement fee		(690)		-
		_________		_________
NET CASH OUTFLOW
FROM SERVICING OF FINANCE			(1,512)		(1,038)
NET CASH INFLOW FROM TAXATION			-		-
FINANCIAL INVESTMENT
Purchase of investments		(106,307)		(96,562)
Disposal of underlying investments by funds		106,283		90,687
Disposal of fund investments by way of secondary sales		21,661		-
		_________		_________
NET CASH INFLOW /(OUTFLOW) FROM			21,637		(5,875)
FINANCIAL INVESTMENTS
ORDINARY DIVIDEND PAID			(10,633)		(8,242)
			_________		_________
NET CASH INFLOW /(OUTFLOW) BEFORE FINANCING			17,352		(7,332)
Conversion of founder A shares		-		892
Buy back of ordinary shares		(7,323)		(12,172)
		_________		_________
NET CASH OUTFLOW FROM FINANCING			(7,323)		(11,280)
			_________		_________
INCREASE/(DECREASE) IN CASH			10,029		(18,612)
			_________		_________
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN FUNDS
Increase/(Decrease) in cash as above			10,029		(18,612)
Currency movements			495		(2,085)
			_________		_________
MOVEMENT IN NET FUNDS IN THE PERIOD			10,524		(20,697)
Opening net funds			21,575		42,272
			_________		_________
CLOSING NET FUNDS			32,099		21,575
			_________		_________
REPRESENTED BY:
Money market funds, cash and short term deposits			32,099		21,575
			_________		_________

Notes:

1.   Standard Life European Private Equity Trust PLC is an investment company managed by SL Capital Partners LLP, the ordinary shares of which are admitted to listing by the UK Listing Authority and to trading on the London Stock Exchange. It seeks to conduct its affairs so as to continue to qualify as an investment trust under section 1158-1165 of the Corporation Taxes Act 2010.  The Board is wholly independent of the Manager and Standard Life plc.
2.  Accounting Policies
(a) Basis of preparation and going concern
The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments at fair value through profit or loss, and in accordance with applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' (issued November 2014). They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements have been prepared on a going concern basis. The financial statements, and the net asset value per equity share figures, have been prepared in accordance with the Companies Act 2006 and UK Generally Accepted Accounting Principles ("UK GAAP"). The directors consider the Company's functional currency to be sterling, as the Company is registered in Scotland, the Company's shareholders are predominantly based in the UK and the Company is subject to the UK's regulatory environment. The principal accounting policies adopted are set out below. These policies have been applied consistently throughout the current and prior year.
(b) Revenue, expenses and finance costs
	Dividends from quoted investments are included in revenue by reference to the date on which the price is marked ex-dividend. Income on quoted investments and other interest receivable are dealt with on an accruals basis. Dividends and income from unquoted investments are included when the right to receipt is established. Incentive fees are recognised in the Income Statement as they are earned and when the return exceeds the specified hurdle rate. All expenses are accounted for on an accruals basis. Expenses are charged through the revenue account of the Income Statement except as follows:
	-      transaction costs incurred on the purchase and disposal of investments are recognised as a capital item in the Income Statement;
	-      the Company charges 90% of investment management fees and finance costs to capital, in accordance with the Board's expected long-term split of returns between capital gains and income from the Company's investment portfolio; and
	-      any incentive fees payable are allocated wholly to capital, as they are expected to be attributable largely, if not wholly, to capital performance.
(c) Investments
		Investments have been designated upon initial recognition as fair value through the profit or loss. On the date of making a legal commitment to invest in a fund, such commitment is recorded and disclosed. When funds are drawn in respect of such fund commitment the resulting investment is recognised in the financial statements. The investment is removed when it is realised or the fund is wound up. Subsequent to initial recognition, investments are valued at fair value as detailed below. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Income Statement and are ultimately recognised in the capital reserves.
		Unquoted investments are stated at the directors' estimate of fair value and follow the recommendations of the EVCA and the BVCA. The estimate of fair value is normally the latest valuation placed on a fund by its manager as at the balance sheet date. The valuation policies used by the manager in undertaking that valuation will generally be in line with the joint publication from the EVCA and the BVCA, 'International Private Equity and Venture Capital Valuation guidelines'. Where formal valuations are not completed as at the balance sheet date the last available valuation from the fund manager is adjusted for any subsequent cash flows occurring between the valuation date and the balance sheet date. The Company's Manager may further adjust such valuations to reflect any changes in circumstances from the last manager's formal valuation date to arrive at the estimate of fair value. For listed investments, fair value is deemed to be bid market prices or closing prices for SETS stocks sourced from the London Stock Exchange. SETS is the London Stock Exchange electronic trading service.
(d) Dividends payable Interim and final dividends are recognised in the period in which they are paid. Scrip dividends are recognised in the period in which shares are issued.
(e) Capital reserves Gains or losses on investments realised in the year that have been recognised in the Income Statement are transferred to the "capital reserve - gains/(losses) on disposal". In addition, any prior unrealised gains or losses on such investments are transferred from the "capital reserve - revaluation" to the "capital reserve - gains/(losses) on disposal" on the disposal of the investment. Increases and decreases in the fair value of investments are recognised in the Income Statement and are then transferred to the "capital reserve - revaluation".
(f) Taxation
		i)      Current taxation - Provision for corporation tax is made at the current rate on the excess of taxable income net of any allowable deductions.
		ii)     Deferred taxation is recognised in respect of all temporary differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the balance sheet date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods.
		Due to the Company's status as an investment trust company, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
(g) Overseas currencies Overseas assets and liabilities are translated at the exchange rate prevailing at the Company's balance sheet date.  Gains or losses on translation of investments held at the year end are accounted for through capital reserves.  Gains or losses on the translation of overseas currency balances held at the year end are also accounted for through capital reserves.
		Rates of exchange to sterling as at 30 September were:
			2015	2014
		Euro	1.3570	1.2834
		US dollar	1.5148	1.6212
		Transactions in overseas currency are translated at the exchange rate prevailing on the date of transaction.

		Year to	Year to
		30 September 2015	30 September 2014
3.	Income	£'000	£'000
	Income from fund investments	11,065	11,438
	Income from index tracker funds	836	569
	Income from cash balances and money market funds	16	32
		______________	______________
	Total income	11,917	12,039
		______________	______________

4.       The return per ordinary share figure is based on the net profit for the year ended 30 September 2015 of £47,194,000 (year ended 30 September 2014: net profit of £27,859,000) and on 157,081,338 (year ended 30 September 2014: 161,125,089) ordinary shares, being the weighted average number of Ordinary shares in issue during the respective periods.

5.       The number of ordinary shares in issue as at 30 September 2015 was 155,776,294 (30 September 2014 - 158,922,294). 

6.      An interim dividend of 1.75p (2014 - nil) per ordinary share was paid on 10 July 2015. The Directors recommend that a final dividend of 3.5p (2014 - 5.00p) per ordinary share be paid on 29 January 2016 to shareholders on the Company's share register as at the close of business on 18 December 2015.

7.      The financial information for the year ended 30 September 2015 comprises non-statutory accounts as defined in sections 434-436 of the Companies Act 2006.  The financial information for the year ended 30 September 2014 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified.  The statutory accounts for the year ended 30 September 2015 contain an unqualified audit report and will be delivered to the Registrar of Companies following the Company's Annual General Meeting, which will be held at The Balmoral Hotel, 1 Princes Street, Edinburgh EH2 2EQ on 20 January 2016 at 12.30pm.

8.      The report and accounts for the year ended 30 September 2015 will be posted to shareholders in mid-December 2015 and copies will be available from the Company Secretary - Personal Assets Trust Administration Company Limited, 10 St. Colme Street, Edinburgh EH3 6AA.

for Standard Life European Private Equity Trust PLC,

Personal Assets Trust Administration Company Limited, Company Secretary

END

 

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