Half Yearly Report

RNS Number : 2818L

Rights and Issues Inv Trust PLC

28 July 2011

 



HALF YEARLY MANAGEMENT REPORT

for the six months ended 30th June 2011

CHAIRMAN'S STATEMENT

The Euro zone uncertainties have again adversely influenced sentiment in the first six months. Equity markets were therefore static and the FTSE All-Share Index saw a rise of only 0.1%.

The momentum that the Trust had achieved in 2010 has continued with the net asset value of the capital shares increasing by 17.6% to 3651.7p. The Trust's emphasis on investing in sound companies that make good products or offer excellent service has underpinned this performance.

The interim dividend of 8.5p per income share has been maintained. The Trust is well on target to re-establish dividend cover by 2013 and may now achieve this at an earlier date.

The next six months may prove more difficult. At some stage the Euro zone will reach its crisis with the prospect of one or more defaults. At the same time the UK economic recovery is no better than anaemic. However sound companies will continue to prosper despite these factors.

David Bramwell

Chairman

July 2011

You can view or download copies of the Half Year and Annual reports from our website at www.rightsandissues.co.uk.

They are to be posted to shareholders and are available at the registered office of the Company.

Risks and uncertainties

Cautionary statement

This half yearly report contains forward-looking statements that involve risk and uncertainty. These have been made by the directors in good faith based on the information available to them at the time of their approval of this report. Due to the inherent uncertainties, including stock market risk factor, actual results may differ materially from those expressed or implied by these forward-looking statements.

There are a number of potential risks and uncertainties which could have a material impact on the Trust's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. Recent volatility in the stock market and in financial markets has added to uncertainty. The Trust's results continue to be exposed to the risk of market price. Further information on the principal long-term risks and uncertainties of the Trust is included in the latest annual report.

CONSOLIDATED INCOME STATEMENT

for the six months ended 30th June 2011

	Six months ended 30th June 2011
	Revenue		Capital		Total
	£		£		£
Investment income	1,006,393		-		1,006,393
Other operating income	159,267		-		159,267
Total income	1,165,660		-		1,165,660
Gains/(Losses) on fair value through profit or loss assets	69,334		11,949,904		12,019,238
	1,234,994		11,949,904		13,184,898
Expenses
Investment management fee	-		-		-
Other expenses	262,822		-		262,822
	262,822		-		262,822
Profit before tax	972,172		11,949,904		12,922,076
Tax	-		-		-
Profit for the period	972,172		11,949,904		12,922,076
Earnings per share
Return per income share (p)	15.9p		121.4p		137.3p
Return per capital share (p)	35.1p		546.5p		581.6p

The total column of this statement represents the Group's Income Statement, prepared in accordance with IFRSs. All income is attributable to the equity holders of the parent company and there are no minority interests. All items in the above statement derive from continuing operations.

The interim dividend of 8.5p net (2010: 8.5p net) per income share and amounting to £209,100 (2010: £209,100) is payable on 30th September 2011 to shareholders on the register as at 26th August 2011. The sum accruing by way of dividend to the Capital shareholders will, in view of the small sum involved be included in the final dividend.

Six months ended 30th June 2010						Year ended 31st December 2010
Revenue		Capital		Total		Revenue		Capital		Total
£		£		£		£		£		£
782,950		-		782,950		1,724,112		-		1,724,112
124,433		-		124,433		256,115		-		256,115
907,383		-		907,383		1,980,227		-		1,980,227
1,192		3,978,194		3,979,386		159,456		20,721,113		20,880,569
908,575		3,978,194		4,886,769		2,139,683		20,721,113		22,860,796
-		-		-		-		-		-
253,213		-		253,213		531,960		-		531,960
253,213		-		253,213		531,960		-		531,960
655,362		3,978,194		4,633,556		1,607,723		20,721,113		22,328,836
-		-		-		-		-		-
655,362		3,978,194		4,633,556		1,607,723		20,721,113		22,328,836
3.4p		40.4p		43.8p		18.5p		210.6p		229.1p
34.5p		181.9p		216.4p		69.6p		947.6p		1017.2p

The financial information contained in this Half Yearly Financial Report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The information for the six months to 30th June 2011 and 30th June 2010 has not been audited.

The information for the year ended 31st December 2010 has been extracted from the latest published audited accounts which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.

The auditors have reviewed the financial information for the six months ended 30th June 2011 pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information and their report is on page 10.

CONSOLIDATED BALANCE SHEET

as at 30th June 2011

	30th June		30th June		31st December
	2011		2010		2010
	£		£		£
Non-current assets
Goodwill	65,191		65,191		65,191
Investments - Fair value through profit or loss	73,216,860		51,153,636		62,429,808
	73,282,051		51,218,827		62,494,999
Current Assets
Trading investments	945,718		502,588		650,233
Trade and other receivables	388,707		186,997		400,967
Amounts due from group undertakings	-		-		-
Cash and cash equivalents	7,901,954		1,775,145		6,386,189
	9,236,379		2,464,730		7,437,389
Total Assets	82,518,430		53,683,557		69,932,388
Current Liabilities
Trade and other payables	949,795		946,667		278,019
Current tax payable	-		-		-
	949,795		946,667		278,019
Total assets less current liabilities	81,568,635		52,736,890		69,654,369
Net Assets	81,568,635		52,736,890		69,654,369
Equity
Called up share capital	1,225,000		1,225,000		1,225,000
Share premium account	225,326		225,326		225,326
Retained reserves:
Capital reserve	42,039,379		37,890,767		39,952,082
Revaluation reserve	36,999,061		12,454,851		27,136,454
Dividend equalisation reserve	1,079,869		940,946		1,115,507
Total equity	81,568,635		52,736,890		69,654,369
Net asset value per share
Income shares	873.2p		576.1p		752.9p
Capital shares	3651.7p		2339.4p		3105.7p

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30th June 2011

			Share						Dividend
	Share		premium		Capital		Revaluation		equalisation
	capital		account		reserve		reserve		reserve		Total
	£		£		£		£		£		£
For the six months ended June 2010
Balance at 31st December 2009	1,225,000		225,326		37,150,280		9,217,143		1,293,394		49,111,143
Profit for the period	-		-		740,487		3,237,708		655,362		4,633,557
Total recognised income and expense	1,225,000		225,326		37,890,767		12,454,851		1,948,756		53,744,700
Dividends	-		-		-		-		(1,007,810	)	(1,007,810	)
Balance at 30th June 2010	1,225,000		225,326		37,890,767		12,454,851		940,946		52,736,890
			Share						Dividend
	Share		premium		Capital		Revaluation		equalisation
	capital		account		reserve		reserve		reserve		Total
	£		£		£		£		£		£
For the six months ended June 2011
Balance at 31st December 2010	1,225,000		225,326		39,952,082		27,136,454		1,115,507		69,654,369
Profit for the period	-		-		2,087,297		9,862,607		972,172		12,922,076
Total recognised income and expense	1,225,000		225,326		42,039,379		36,999,061		2,087,679		82,576,445
Dividends	-		-		-		-		(1,007,810	)	(1,007,810	)
Balance at 30th June 2011	1,225,000		225,326		42,039,379		36,999,061		1,079,869		81,568,635

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30th June 2011

	Group		Group
	2011		2010
	£		£
Cashflows from operating activities
Profit before tax	12,922,076		4,633,557
Adjustments for:
(Gains)/losses on investments	(11,949,904	)	(3,978,195	)
Purchase of investments	(2,236,063	)	(4,101,875	)
Proceeds of investments	3,398,915		920,491
Movement in trading investments	(295,485	)	(4,010	)
Operating cash flows before movements in working capital	1,839,539		(2,530,032	)
Decrease/(increase) in receivables	12,260		57,643
Increase/(decrease) in payables	103,076		216,241
Net cash from operating activities before income taxes	1,954,875		(2,256,148	)
Income taxes paid	-		-
Net cash from operating activities	1,954,875		(2,256,148	)
Cash flows from financing activities
Dividends paid	(439,110	)	(439,110	)
Net cash (used in)/from financing activities	(439,110	)	(439,110	)
Net increase/(decrease) in cash and cash equivalents	1,515,765		(2,695,258	)
Cash and cash equivalents at beginning of year	6,386,189		4,470,403
Cash and cash equivalents at end of period	7,901,954		1,775,145

NOTES TO THE HALF YEARLY FINANCIAL REPORT

for the six months ended 30th June 2011

1.     Accounting Standards

The condensed interim financial report has been prepared in accordance with International Financial Reporting Standards (IFRSs), including IAS 34 "Interim financial reporting as adopted by the European Union". The same accounting policies and methods of computation are followed in the interim financial report as those used in the Company's latest published annual financial statements.

2.     Dividends

	2011		2010
Amounts recognised as distributions to equity holders in the period:
Income (Paid)
Final dividend for the year ended 31st December 2010 of 17.0p (2009: 17.0p) per share	418,200		418,200
Capital (Paid)
Final dividend for the year ended 31st December 2010 of 1.2750p (2009: 1.2750p) per share	20,910		20,910
Capital Supplementary (Accrued)
Payable 2nd January 2012 of 68.6829p (2011: 68.6829p) per share	563,200		563,200
Dividends on non-equity shares:
Cumulative preference 5.5% (Accrued)	5,500		5,500
	1,007,810		1,007,810
Income
Proposed interim dividend for the year ended 31st December 2011 of 8.5p (2010: 8.5p) per share	209,100		209,100

This was approved by the Board on 28th July 2011 and has not been included as a liability at 30th June 2011.

3.     Income

	2011		2010
Total income comprises:
Dividends	1,006,393		782,950
Interest	764		600
Other income	158,503		123,833
	1,165,660		907,383

4.     Related Party Transactions

Transactions between the company and its subsidiaries, which are related parties have been eliminated on consolidation.

The Company's subsidiary company Discretionary Unit Fund Managers Limited manages the Discretionary Unit Fund and acts as principal in respect of all transactions of units in the Fund. In respect of this its fee for the six months amounted to £158,503 (2010: £123,833) and the amount owed by the Fund at the period end was £Nil (2010: £4,738).

DIRECTORS' STATEMENT OF RESPONSIBILITY FOR THE HALF YEARLY REPORT

The Directors are responsible for preparing the half yearly financial report in accordance with applicable law and regulations.

The Directors confirm that to the best of their knowledge:

·          the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim financial reporting"; and

·          the half yearly management report includes a fair review of the information required by DTR 4.2.7R and 4.2.8R.

This report was approved on 28th July 2011.

D. Bramwell

Chairman

APPENDIX

	TOP TEN HOLDINGS
	Holding		Investment	Value £
	2,700,000		Brammer	8,950,500
	10,425,000		Scapa Group	6,307,125
	1,625,000		RPC Group	5,898,750
	1,673,038		Hill & Smith Holdings	5,817,990
	2,100,000		Colefax Group	5,145,000
	1,250,000		Diploma	4,693,750
	1,800,000		RPS Group	4,413,600
	1,800,000		VP	4,410,000
	15,659,184		Macfarlane Group	4,149,684
	500,000		Domino Printing Sciences	3,407,500

 

END

 

 

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