Final Results

RNS Number : 2361B

Personal Assets Trust PLC

09 June 2021

 

To:  RNS

From:  Personal Assets Trust plc

LEI:  213800Z7ABM7RLQ41516

Date:  9 June 2021

Results for the year ended 30 April 2021

The Directors of Personal Assets Trust plc ("PAT") are pleased to announce the Company's results for the year ended 30 April 2021.

The key points are as follows:

· PAT's investment policy is to protect and increase (in that order) the value of shareholders' funds per share over the long term.

· Over the year to 30 April 2021 PAT's net asset value per share ("NAV") rose by 9.1%. This compares to a rise of 22.1% in the FTSE All-Share Index.  PAT's share price rose by £38.00 during the year and at 30 April 2021 was £471.00. An analysis of performance is provided in the Chairman's Statement and Investment Manager's Report below.

· Since PAT became independently managed in 1990 its NAV has increased by 720.8% compared to the FTSE All-Share's 281.9% and the RPI's 140.7%.

Capital returns to 30 April 2021:

	3 Years	5 Years	10 Years	Since 1990
NAV	19.8%	26.7%	47.8%	720.8%
FTSE All-Share	(3.5)%	16.4%	26.3%	281.9%
RPI	7.7 %	15.2%	28.5%	140.7 %

· During the year the Company's shares continued to trade close to NAV. The Company issued 509,926 Ordinary shares.

· During the year, PAT continued to maintain a high level of liquidity. At 30 April 2021, liquidity was 54.2%. This included 12.7% in UK T-Bills, UK cash, overseas cash, and net current liabilities and 41.5% in various classes of non-equity risk assets: 32.6% in US TIPS and 8.9% in Gold Bullion. This compared to holdings as at 30 April 2020 of 14.1% in UK T-Bills, UK cash, overseas cash, and net current liabilities and 41.2% in various classes of non-equity risk assets: 31.3% in US TIPS and 9.9% in Gold Bullion.

· Dividends are paid in July, October, January and April of each year. The first interim dividend of £1.40 per Ordinary share will be paid to shareholders on 16 July 2021. Barring unforeseen circumstances, three further interim dividends of £1.40 per Ordinary share are expected to be paid to shareholders in the year ending 30 April 2022, totalling £5.60 for the year.

The Chairman, Iain Ferguson, said:

I am delighted to be writing my first Chairman's Statement for you, having taken over as Chairman of Personal Assets Trust plc ("PAT") from Hamish Buchan at the AGM last September. I have been on the Board of PAT since 2017 and have been an investor in PAT for nearly 30 years.

Our recollections of the last 15 months will inevitably be dominated by the global pandemic which has created extremely testing times for all, with personal and business challenges extending well beyond the horizons of our investment world. PAT is in a fortunate position, our investments are managed by Troy Asset Management Limited ("Troy") and our administration is managed by Juniper Partners Limited (formerly known as PATAC Limited). We are grateful to the people of both organisations for the way that they quickly adapted their operations to work in a virtual way and have been able to maintain their usual high standards of service. The PAT Board has also embraced new technology and has met virtually. We do look forward, however, to returning to in-person meetings as soon as the situation allows.

The last year has seen a number of Board changes with Robin Angus and Hamish Buchan both retiring at the last AGM. Robin served as a Director from 1984 and Executive Director from 2002, and Hamish as a Director from 2001 and Chairman from 2009. They have both been instrumental in the success of our Company and we wish them well for the future. We are very pleased to record that Mandy Clements and Robbie Robertson both joined the Board immediately after the last AGM, each bringing great experience and particular skills which strengthen and diversify our Board capabilities.

All of our Directors are also investors in PAT. We share a strong alignment with and are advocates of the core PAT investment proposition, which is to protect and increase (in that order) the value of shareholder funds per share (otherwise known as net asset value ("NAV") per share) over the long term.

We track the performance of PAT from 1990 and since then the NAV has grown at an annual compound rate of 7.0% compared to 4.4% for the FTSE All-Share Index and 2.8% for the RPI, the two main comparators which we use. We also track the degree of risk experienced in achieving our financial performance. The results are tabulated in the Key Features section on page 1 of the Annual Report and the degree of risk experienced is indicated on the chart on page 15. This shows that consistently, over the last 20 years, PAT has been less volatile than equities in general and also less volatile than any of the investment trusts in the AIC Global and AIC Flexible Investment Sectors. Whilst this combination of above-comparator financial returns and below-sector volatility is the outcome of a focus on capital preservation, these metrics are by no means a target. The investment manager's focus remains on the avoidance of permanent capital loss (our preferred definition of risk) and on growing the real value of the Company's capital over the long run. In his report on pages 4 and 5 of the Annual Report, Sebastian Lyon, our Investment Manager, provides further details of our investment performance.

We remain committed to paying an annual dividend of £5.60 per share and are able to do this without

interfering with the balance and composition of our investment portfolio as our articles of association permit PAT to distribute realised capital gains as dividend. In the year ending 30 April 2021 the dividend was 81% covered by earnings and 95% covered on a five-year average basis.

During the year we issued a record number of net new Ordinary shares, 509,926, for a record net inflow of £229.8 million. As at the 30 April 2021 we had 3,232,929 Ordinary shares in issue. It is the policy of the Company to aim to ensure that its Ordinary shares always trade at close to NAV and this policy is enshrined in the Articles of Association. It is reassuring to report that since November 1999, when investment trusts were empowered to use capital to buy back shares and hence control the discount to NAV at which their shares trade, the PAT share price has closely tracked the NAV while the number of shares in issue is now nearly nine times higher.

Our relationship with Troy has continued to be excellent and their transition from Investment Adviser to

Investment Manager was achieved seamlessly with effect from 1 May 2020. PAT is now benefitting from greater access to shared resources and focused support from the Troy team lead by Sebastian and his senior colleagues. We have agreed a revised fee structure with Troy which reflects the sharing of the benefits of scale as our shareholders' funds grow above £1.5 billion. Details of the revised fee structure are shown on page 7 of the Annual Report. We also pay particular attention to ensuring the competitiveness of our ongoing charges ratio, which was 0.73% for the year ending 30 April 2021, having reduced from 1.18% in 2011.

Our relationship with Juniper Partners, which provides our administrative, company secretarial and discount control services, also changed during the year. The transfer of this business from PAT to The Juniper Companies Limited was approved by the FCA and the transaction was completed on 30 September 2020. Following the transfer PATAC Limited changed its name to Juniper Partners Limited. I am pleased to be able to tell you that the Juniper Partners team continue to provide a first class service to PAT and to their other clients, moreover, it is also very encouraging to note that they have already added to their client base and recruited additional team members, thereby building greater capacity and resilience in their operations, which benefits all of their clients.

We recognise the changing nature of the Company's shareholder base and the increasing number of investors holding shares indirectly through the platforms who may not have direct access to communications from the Company. During the year we have introduced an updated website (www.patplc.co.uk) and Sebastian and Troy have taken on the production of the PAT Quarterlies. We hope that both of these developments are providing investors with easy and effective access to information about PAT. We are always pleased to receive questions and comments from our shareholders with our Company Secretary and Troy working together to ensure prompt and appropriate responses.

In our Annual Report last year, we introduced the Personal Assets Trust Foundation, a charitable organisation with the objective of promoting and advancing the financial education of younger people wishing to pursue careers within or related to the investment and finance industries. Whilst good progress has been made on the establishment of the charity, the public launch has been delayed due to the pandemic. We hope to be able to report on both the launch and the first recipients of awards in our next Annual Report.

My colleagues and I greatly missed the opportunity to meet with our fellow shareholders last year as we had to hold our AGM in a virtual format. Unfortunately, it looks as if we will again have to hold a virtual AGM this year on Friday 23 July 2021. As we will not be holding the AGM in the usual format I will be holding a Q&A session with the Investment Manager to answer any shareholder questions. This video will be made available following the AGM. I would encourage all shareholders to submit any questions for this session to our Company Secretary by email at [e-mail] by Tuesday, 13 July 2021. As a Board we would very much like to have the chance to meet our shareholders and we will keep the situation under review, looking at the possibility of holding a shareholder event later in the year.

In the meantime, I wish all of you good health and thank you for your investment in PAT.

The Investment Manager, Sebastian Lyon, said:

Over the year to 30 April 2021 the net asset value per share ("NAV") of Personal Assets Trust ("PAT") rose by 9.1% while our traditional comparator, the FTSE All-Share Index ("FTSE"), rose by 22.1%. The UK Retail Price Index ("RPI"), which we also use as a comparator (see the inside front cover of the Annual Report and Key Features and Record 1990-2021 on pages 1 and 13 of the Annual Report respectively), rose by 2.9%. Over the past three years the NAV per share rose by +19.8% compared to the FTSE All Share return of -3.5% and RPI +7.7%.

During the pandemic we protected shareholders' capital on the downside but shareholders may question why we have not participated more in the upside in recent months. Since we wrote the interim report in November, markets have experienced a strong bounce back as a reflation-driven, re-opening trade has taken hold following the good news of vaccine approvals. We have been here before in 2003, 2009, 2013 and 2017 with rotations into more cyclical and 'value' sectors such as financials, energy and industrials. The worst thing we could do would be to increase our risk the more speculative markets become. To do this would be the equivalent of pressing harder on the accelerator the closer we get to the cliff. There remains material business risk from technological change and the disruption that it brings. As companies enjoy the fruits of the reopening trade, many of the structural pressures look, for now, to be in abeyance. However, the pandemic has, if anything, been a catalyst to accelerate these trends. Share prices of recovery stocks may prove short-lived as economic reality re-asserts itself on challenged business models.

Our focus for PAT is on durable and profitable businesses. Over the past few years, we have been more active than in prior ones, making changes to constantly evolve the portfolio on an ongoing basis to align it with our investment proposition. In the past financial year, we exited long-term holdings in Coca-Cola, Colgate-Palmolive and British American Tobacco. Our preference is for companies that are resilient and continue to grow. We added to core holdings during the year including American Express, Franco-Nevada, Nestlé, Philip Morris and Unilever. A number of recent new additions to the portfolio helped performance, especially Alphabet (the holding company of Google), Visa and Agilent.

PAT shares ended the financial year at an all-time high. We have confidence in our long-term, conservative investment approach and are committed to staying the course. The current environment is not however as riskless as may first appear. Commodity prices are signalling inflationary risks not seen for over a decade but there is some confusion as to whether this is an early-cycle recovery from a self-inflicted recession or if in fact the economy is late-cycle and overheating. Bottlenecks and business demands for labour look more like the latter. In the aftermath of the pandemic, geopolitics seem also to be contributing to the inflation side of the ledger, with increased nationalism and fragmenting supply chains. At this stage however, it is difficult to predict how sustained these inflationary forces will be. We are open-minded about the monetary backdrop of the future, mindful that unprecedented waves of monetary and fiscal stimulus meet strong, countervailing deflationary forces, whilst the uniqueness of the current environment continues to obfuscate the longer-term picture. This lack of visibility increases the risk of a policy error. Central bankers have the unenviable task of endeavouring to wean the economy off their current, highly-stimulative policies.

How do we structure our Company against this backdrop? Today, fixed income no longer offers its traditional defence. The recent falls in the bond market show that there are fewer places to hide in markets that are flirting with record valuations. Our preference has been to own index-linked bonds, particularly US Treasury Index Protected Securities ("TIPS"). Should inflation surprise on the upside, these will provide us with some protection. Gold bullion protects us from ongoing debasement of currencies and, despite its volatility, has proven its worth over the long term as a portfolio diversifier. We used weakness in gold and TIPS over the year to add to our existing holdings. We expect real interest rates to move more negative in the medium term as the era of financial repression (when interest rates remain below the level of inflation) continues.

There are plenty of signs of investor speculation in Special Purpose Acquisition Companies ('SPACs'), electric vehicles and alternative energy. At the 2011 AGM, as the new Investment Adviser to PAT, I was asked how we were going to gain exposure to the US shale boom. The answer was, we were not, which went down like a lead balloon. The boom soon turned to bust and very few made money from shale. Capital gushed into the sector, diminishing returns; this has similarities with the enthusiasm for some investments buoyed today on a huge wave of liquidity. Not all growth is created equal.

I recently came across a copy of the 16 Rules of Investment Success by Sir John Templeton. One I thought particularly relevant to PAT was Rule No.5: "When buying stocks, search for bargains among quality stocks".  That has perhaps become less fashionable in the past year as quality, which served us so well during the pandemic, has been left behind in the recent re-opening rally. This should provide us with opportunities to add to our favoured holdings at better valuations.

For further information contact:

Sebastian Lyon

Investment Manager

Tel:  [phone]

Carron Dobson

Juniper Partners, Company Secretary

Tel:  [phone]

The Company's Income Statement, Statement of Financial Position, Statement of Changes in Equity and Cash Flow Statement follow.

I ncome Statement

	Year ended 30 April 2021
	Revenue	Capital
	return	return	Total
	£'000	£'000	£'000
Investment income
Calculated using the effective interest rate method	3,272	-	3,272
Other investment income	15,733	-	15,733
	19,005	-	19,005
Gain on disposal of asset held for sale	-	1,559	1,559
Gains on investments held at fair value through profit or loss	-	80,865	80,865
Foreign exchange gains	-	38,951	38,951
Total income	19,005	121,375	140,380
Expenses	(4,423)	(5,269)	(9,692)
Return before taxation	14,582	116,106	130,688
Taxation	(1,045)	482	(563)
Return for the year	13,537	116,588	130,125
Return per share	£4.53	£39.04	£43.57
The "Return for the Year" is also the "Total Comprehensive Income for the Year", as defined in IAS1 (revised), and no separate Statement of Comprehensive Income has been presented. The "Total" column of this statement represents the Company's Income Statement, prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRSs").  The Revenue and Capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. Return per share is calculated on 2,986,288 (2020: 2,617,987) shares, being the weighted average number in issue (excluding Treasury shares) during the year. All items in the above statement derive from continuing operations.
Dividend Information	2021		2020
Dividends per share	£5.60		£5.60
Dividends paid	£'000		£'000
First interim dividend of £1.40 per share (2020: £1.40 per share) paid on 17 July 2020	3,895		3,406
Second interim dividend of £1.40 per share (2020: £1.40 per share) paid on 9 October 2020	4,068		3,612
Third interim dividend of £1.40 per share (2020: £1.40 per share) paid on 8 January 2021	4,242		3,750
Fourth interim dividend of £1.40 per share (2020: £1.40 per share) paid on 13 April 2021	4,439		3,871
	16,644		14,639

Income Statement

	Year ended 30 April 2020
	Revenue	Capital
	return	return	Total
	£'000	£'000	£'000
Investment income
Calculated using the effective interest rate method	7,009	-	7,009
Other investment income	14,681	-	14,681
Other operating income	162	-	162
	21,852	-	21,852
Gain on disposal of asset held for sale	-	451	451
Gains on investments held at fair value through profit or loss	-	68,869	68,869
Foreign exchange losses	-	(16,260)	(16,260)
Total income	21,852	53,060	74,912
Expenses	(4,069)	(4,427)	(8,496)
Return before taxation	17,783	48,633	66,416
Taxation	(2,433)	1,444	(989)
Return for the year	15,350	50,077	65,427
Return per share	£5.86	£19.13	£24.99

 Statement of Financial Position

			As at 30 April 2021			As at 30 April 2020
			£'000			£'000
Non-current assets
Investments held at fair value though profit or loss			1,432,656			1,100,973
Property			2,144			1,699
Total non-current assets			1,434,800			1,102,672
Current assets
Receivables			1,228			3,095
Cash and cash equivalents			70,907			56,091
			72,135			59,186
Assets classified as held for sale			-			1,234
Total current assets			72,135			60,420
Total assets			1,506,935			1,163,092
Current liabilities
Financial liabilities held at fair value though profit or loss			(676)			(79)
Payables			(2,323)			(2,047)
Total liabilities			(2,999)			(2,126)
Net assets			1,503,936			1,160,966
Capital and reserves
Ordinary share capital			40,410			34,580
Share premium			1,017,672			811,635
Capital redemption reserve			219			219
Special reserve			22,517			22,517
Treasury share reserve			-			(17,622)
Capital reserve unrealised			285,947			215,074
Distributable reserves			137,171			94,563
Total equity			1,503,936			1,160,966
Shares in issue at year end			3,232,929			2,723,003
Net asset value per Ordinary share			£465.19			£426.36

Statement of Changes in Equity

							Distributable reserves
For the year ended 30 April 2021	Ordinary share capital	Share premium	Capital redemption reserve	Special reserve	Treasury share reserve	Capital reserve unrealised	Capital reserve realised	Revenue reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 May 2020	34,580	811,635	219	22,517	(17,622)	215,074	93,852	711	1,160,966
Return for the year	-	-	-	-	-	70,873	45,715	13,537	130,125
Ordinary dividends paid	-	-	-	-	-	-	(2,396)	(14,248)	(16,644)
Issue of Ordinary shares	5,830	206,037	-	-	17,622	-	-	-	229,489
Balance as at 30 April 2021	40,410	1,017,672	219	22,517	-	285,947	137,171	-	1,503,936
							Distributable reserves
For the year ended 30 April 2020	Ordinary share capital	Share premium	Capital redemption reserve	Special reserve	Treasury share reserve	Capital reserve unrealised	Capital reserve realised	Revenue reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 May 2019	29,904	657,090	219	22,517	-	177,315	81,534	-	968,579
Return for the year	-	-	-	-	-	37,759	12,318	15,350	65,427
Ordinary dividends paid	-	-	-	-	-	-	-	(14,639)	(14,639)
Issue of Ordinary shares	4,476	155,545	-	-	12,019	-	-	-	171,240
Share buybacks	-	-	-	-	(29,641)	-	-	-	(29,641)
Balance as at 30 April 2020	34,580	811,635	219	22,517	(17,622)	215,074	93,852	711	1,160,966

Share premium . The share premium represents the difference between the nominal value of new Ordinary shares issued and the consideration the Company receives for these shares.

Capital redemption reserve . The capital redemption reserve represents the nominal value of Ordinary shares bought back for cancellation since authority to do this was first obtained at a General Meeting in April 1999.

Special reserve . The cost of any shares bought back for cancellation is deducted from the special reserve, which was created from the share premium, also following a General Meeting in April 1999.

Treasury share reserve .  The net cost of any shares bought back and held in treasury.

Capital reserve unrealised. Increases and decreases in the valuation of investments held at the year end, unrealised gains and losses on FTSE 100 Future contracts and unrealised exchange differences of a capital nature are accounted for in this reserve.

Capital reserve realised. Gains and losses on the realisation of investments, gains and losses on the realisation of FTSE 100 Future contracts, realised exchange differences of a capital nature and returns of capital are accounted for in this reserve.

Revenue reserve . Any surplus/deficit arising from the revenue return for the year is taken to/from this reserve.

 Cash Flow Statement

	Year ended 30 April	Year ended 30 April
	2021	2020
	£'000	£'000
Cash flows from operating activities
Return before taxation	130,688	66,416
Gains on investments including effective yield	(85,696)	(76,328)
Foreign exchange (gains)/losses	(38,951)	16,260
Operating cash flows before movements in working capital	6,041	6,348
Decrease/(increase) in accrued income, prepayments and other receivables	733	(198)
Increase in other payables	276	380
Net cash from operating activities before taxation	7,050	6,530
Taxation	(563)	(1,005)
Net cash inflow from operating activities	6,487	5,525
Cash flows from investing activities
Purchases of investments - equity shares	(118,361)	(225,871)
Purchases of investments - fixed interest and other investments	(613,740)	(664,977)
Purchase of gold bullion	(25,044)	(6,033)
Purchase of freehold property	(445)	(1,699)
Disposal of investments - equity shares	59,569	79,920
Disposal of investments - fixed interest and other investments	450,077	738,278
Disposal of subsidiary	2,793	-
Forward foreign exchange gains/(losses)	40,230	(17,412)
Net cash outflow from investing activities	(204,921)	(97,794)
Cash flows from financing activities
Equity dividends paid	(16,644)	(14,639)
Issue of Ordinary shares	230,576	170,156
Share buybacks	-	(29,641)
Net cash inflow from financing activities	213,932	125,876
Increase/ in cash and cash equivalents	15,498	33,607
Cash and cash equivalents at the start of the year	56,091	22,792
Effect of exchange rate changes	(682)	(308)
Cash and cash equivalents at the year end	70,907	56,091
Net cash inflow from operating activities includes the following:
Dividends received	12,702	10,431
Interest received	4,133	4,068

Principal Risks and Risk Management

The Board has carried out a careful assessment of the principal risks facing the Company, including the unprecedented situation surrounding the COVID-19 pandemic. The Board acknowledges that there are a number of related emerging risks resulting from the pandemic that may impact the Company. These include investment risks surrounding the companies in the portfolio such as reduced demand, reduced turnover and supply chain breakdowns. The Board continues to work with the Investment Manager, Juniper Partners and its other advisers to manage these risks as far as possible in these uncertain times.

The principal risks and uncertainties facing the Company, together with a summary of the mitigating action the Board takes to manage these risks, are set out below.

Economic

Risk

The Board believes that the principal risk to shareholders and the Company's investments are events or developments which can affect the general level of share prices, including for instance, inflation or deflation, economic recessions and movement in interest rates and currencies which could cause losses within the portfolio.

The emerging risks posed by the COVID-19 pandemic will impact on all the economic risks faced by the Company.

Mitigation

The Board regularly monitors the investment environment and the management of the Company's investment portfolio, and applies the principles detailed in the guidance provided by the Financial Reporting Council. Further details on the Company's financial risks are contained in the Notes to the Accounts in the Annual Report.

The Company's strategy is reviewed formally on at least an annual basis considering investment performance, market developments and shareholder communication. The Board receives regular updates on the composition of the Company's portfolio. Investment performance and portfolio composition has been monitored specifically in the light of the COVID-19 pandemic.

Operational

Risk

The Company is reliant on service providers including Troy as Investment Manager, Juniper Partners as AIFM, Company Secretary, Administrator and discount control provider, J.P.Morgan as Depositary and Custodian and Equiniti as Registrar. Failure of the internal control systems of these parties could result in losses to the Company.

Mitigation

The Board formally reviews the Company's service providers on an annual basis, including reports on their internal controls where available. The Company's internal controls are described in more detail on page 37 of the Annual Report.

Operationally, COVID-19 is affecting each of the Company's key service providers and each has put in place the appropriate arrangements for their staff to work from home. To date these services have continued without disruption and the operational arrangements have proven adequate. The Board will continue to monitor these arrangements.

Regulatory

Risk

Breach of regulatory rules could lead to the suspension of the Company's Stock Exchange listing, financial penalties, or a qualified audit report. Breach of Section 1158 of the Corporation Tax Act 2010 could lead to the Company being subject to tax on capital gains.

Mitigation

Compliance with the Company's regulatory obligations is monitored on an ongoing basis by Juniper Partners, the Investment Manager and other professional advisers as required who report to the Board regularly. The Board has been updated on any regulatory changes proposed in respect of the response to the COVID-19 pandemic as required.

Discount Control

Risk

The share price could be impacted by a number of external factors which could cause significant discount and premium fluctuations.

Mitigation

The Company's discount and premium control policy, which is enshrined in the Articles of Association, is to ensure that shares always trade at close to net asset value. The level of share issuance or buybacks under the policy is reported via an RNS on an ongoing basis. The operation of the discount and premium control policy has been reviewed in the light of the COVID-19 pandemic and to date has continued throughout the period without disruption.  

Responsibility Statement under the Disclosure Guidance and Transparency Rules

Each of the Directors confirms that to the best of her or his knowledge:

· the financial statements, prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

· the Strategic 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.

Going Concern

The Directors acknowledge that the continuing situation surrounding the Covid-19 pandemic creates risks and uncertainties which may impact the Company. Nevertheless, the Directors believe, in the light of the controls and review processes reported in the Report of the Audit Committee on page 36 of the Annual Report and bearing in mind the nature of the Company's business and assets, which are considered to be readily realisable if required, that the Company has adequate resources to continue operating for at least twelve months from the date of approval of the financial statements. For this reason, they continue to adopt the going concern basis in preparing the accounts.

Related Party Transactions

Investment management services are provided by Troy Asset Management Limited. The fee for the year ended 30 April 2021 was £8,106,000 (2020: £6,811,000). An amount of £2,132,000 was outstanding to the Investment Manager at 30 April 2021 (2020: £1,735,000).

Directors of the Company received fees for their services. An amount of £15,000 was outstanding to the Directors at 30 April 2021 (2020: £13,000). Further details are provided in the Directors' Remuneration Report on pages 32 and 33 of the Annual Report. The Directors' shareholdings are also detailed on pages 28 and 32 of the Annual Report.

Notes:

1.  The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards in conformity with the requirements of the Companies Act 2006.

The financial statements have been prepared on a going concern basis.

The financial statements are presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except where otherwise indicated.

The financial statements have been prepared on the historical cost basis, modified by revaluation of financial assets and financial liabilities held at fair value. The principal accounting policies adopted are set out in pages 20 and 21 of the Annual Report. These have been applied consistently, other than where new policies have been adopted. Where the presentational guidance set out in the Statement of Recommended Practice (the ''SORP'') for investment trusts issued by the Association of Investment Companies (the ''AIC'') in October 2019 is consistent with the requirements of IFRSs, the Directors have sought to prepare the financial statements on a basis compliant with the recommendation of the SORP.

2.  During the year the Directors issued 466,380 Ordinary shares for proceeds of £210,699,000 and 43,546 shares were re-issued from Treasury for proceeds of £19,083,000.

3.  At 30 April 2021 the sterling value of the US Treasury stocks and part of the US equities were protected by a forward currency contract.

4.  The Company held the following categories of financial instruments as at 30 April 2021:

	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Investments	1,432,656	-	-	1,432,656
Financial liabilities	-	(676)	-	(676)
Total	1,432,656	(676)	-	1,431,980

The above table provides an analysis of investments based on the fair value hierarchy described below and which reflects the reliability and significance of the information used to measure their fair value. The levels are determined by the lowest (that is, the least reliable or least independently observable) level of impact that is significant to the fair value measurement for the individual investment in its entirety as follows:

Level 1 reflects financial instruments quoted in an active market. The Company's investment in Gold Bullion has been included in this level.

Level 2 reflects financial instruments the fair value of which is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique the variables of which include only data from observable markets. The Company's forward currency contract has been included in this level as fair value is achieved using the foreign exchange spot rate and forward points which vary depending on the duration of the contract.

Level 3 reflects financial instruments the fair value of which is determined in whole or in part using a valuation technique based on assumptions that are not supported by prices from observable market transactions in the same instrument and not based on available observable market data.

5.  These are not statutory accounts in terms of Section 434 of the Companies Act 2006.  Full audited accounts for the year to 30 April 2021 will be sent to shareholders in June 2021 and will be available for inspection at 28 Walker Street, Edinburgh EH3 7HR, the registered office of the Company. The full Annual Report will be available on the Company's website www.patplc.co.uk .

6.  The audited accounts for the year ended 30 April 2021 will be lodged with the Registrar of Companies.

 

END

 

 

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