Half Yearly Report

RNS Number : 6566J

Rights and Issues Inv Trust PLC

18 July 2013

 



HALF YEARLY FINANCIAL REPORT

for the six months ended 30th June 2013

CHAIRMAN'S STATEMENT

After a buoyant start, the UK Stock Market suffered a very sharp correction in May and June as fears over the US's stance on quantitative easing impacted. The FTSE All-Share Index was restricted to a 6.3% rise.

The Trust produced a solid performance with a 10.0% rise in the net asset value of the capital shares to 4233.6p. The market setback had a lesser effect on smaller company share prices and this factor benefited the Trust during the last six months.

The interim dividend is being raised to 9.5p per income share and is a reflection of the improved income position of the Trust.

So far in July sentiment over quantitative easing has improved and the UK Stock Market has recovered some of its recent fall. Recent experience would suggest that market conditions are likely to remain volatile during the next few months. Nevertheless corporate profitability remains good and this provides sound support for the Trust.

Dr D. M. Bramwell

Chairman

18th July 2013

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

The Half Yearly Report is to be posted to shareholders and is 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 STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30th June 2013

		Six months ended 30th June 2013
		Revenue		Capital		Total
		£		£		£
Investment income		1,456,043		-		1,456,043
Other operating income		158,030		-		158,030
Total income		1,614,073		-		1,614,073
Gains/(Losses) on fair value through profit or loss assets		34,999		8,430,299		8,465,298
		1,649,072		8,430,299		10,079,371
Expenses
Investment management fee		-		-		-
Other expenses		331,901		-		331,901
		331,901		-		331,901
Profit before tax		1,317,171		8,430,299		9,747,470
Tax		-		-		-
Profit for the period		1,317,171		8,430,299		9,747,470
Earnings per share
Return per income share		25.2p		85.7p		110.9p
Return per capital share		42.2p		385.5p		427.7p

The total column of this statement represents the Consolidated Statement of Comprehensive Income, 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. All items in the above statement derive from continuing operations. All income is attributable to the equity holders of the parent company and there are no minority interests.

The interim dividend of 9.5p net (2012: 8.5p net) per income share and amounting to £233,700 (2012: £209,100) is payable on 30th September 2013 to shareholders on the register as at 30th August 2013. 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 2012						Year ended 31st December 2012
		Revenue		Capital		Total		Revenue		Capital		Total
		£		£		£		£		£		£
Investment income		1,068,609		-		1,068,609		2,263,227		-		2,263,227
Other operating income		146,677		-		146,677		295,290		-		295,290
Total income		1,215,286		-		1,215,286		2,558,517		-		2,558,517
Gains/(Losses) on fair value through profit or loss assets		45,470		9,821,000		9,866,470		144,008		18,431,632		18,575,640
		1,260,756		9,821,000		11,081,756		2,702,525		18,431,632		21,134,157
Expenses
Investment management fee		-		-		-		-		-		-
Other expenses		258,988		-		258,988		584,795		-		584,795
		258,988		-		258,988		584,795		-		584,795
Profit before tax		1,001,768		9,821,000		10,822,768		2,117,730		18,431,632		20,549,362
Tax		-		-		-		-		-		-
Profit for the period		1,001,768		9,821,000		10,822,768		2,117,730		18,431,632		20,549,362
Earnings per share
Return per income share		16.8p		99.8p		116.6p		38.1p		187.3p		225.4p
Return per capital share		35.6p		449.1p		484.7p		71.4p		842.9p		914.3p

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 2013 and 30th June 2012 has not been audited.

The information for the year ended 31st December 2012 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 2013 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 2013

		30th June		30th June		31st December
		2013		2012		2012
		£		£		£
Non-current assets
Goodwill		65,191		65,191		65,191
Investments - Fair value through profit or loss		90,276,847		70,936,599		77,051,625
		90,342,038		71,001,790		77,116,816
Current Assets
Trading investments		697,007		664,680		646,584
Trade and other receivables		745,355		447,463		381,015
Amounts due from group undertakings		-		-		-
Cash and cash equivalents		4,012,609		5,907,939		8,476,315
		5,454,971		7,020,082		9,503,914
Total Assets		95,797,009		78,021,872		86,620,730
Current Liabilities
Trade and other payables		886,912		654,054		310,718
Current tax payable		-		-		-
		886,912		654,054		310,718
Total assets less current liabilities		94,910,097		77,367,818		86,310,012
Net Assets		94,910,097		77,367,818		86,310,012
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		50,156,680		46,116,376		49,005,514
Revaluation reserve		41,576,439		28,575,812		34,297,306
Dividend equalisation reserve		1,726,652		1,225,304		1,556,866
Total equity		94,910,097		77,367,818		86,310,012
Net asset value per share
Income shares		1027.6p		834.7p		935.0p
Capital shares		4233.6p		3453.3p		3848.1p

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30th June 2013

				Share						Dividend
		Share		premium		Capital		Revaluation		equalisation
		capital		account		reserve		reserve		reserve		Total
		£		£		£		£		£		£
For the six months ended June 2012
Balance at 31st December 2011		1,225,000		225,326		41,611,944		23,259,244		1,237,946		67,559,460
Profit for the period		-		-		4,504,432		5,316,568		1,001,768		10,822,768
Total recognised income and expense		1,225,000		225,326		46,116,376		28,575,812		2,239,714		78,382,228
Dividends		-		-		-		-		(1,014,410	)	(1,014,410	)
Balance at 30th June 2012		1,225,000		225,326		46,116,376		28,575,812		1,225,304		77,367,818
				Share						Dividend
		Share		premium		Capital		Revaluation		equalisation
		capital		account		reserve		reserve		reserve		Total
		£		£		£		£		£		£
For the six months ended June 2013
Balance at 31st December 2012		1,225,000		225,326		49,005,514		34,297,306		1,556,866		86,310,012
Profit for the period		-		-		1,151,166		7,279,133		1,317,171		9,747,470
Total recognised income and expense		1,225,000		225,326		50,156,680		41,576,439		2,874,037		96,057,482
Dividends		-		-		-		-		(1,147,385	)	(1,147,385	)
Balance at 30th June 2013		1,225,000		225,326		50,156,680		41,576,439		1,726,652		94,910,097

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30th June 2013

		Group		Group
		2013		2012
		£		£
Cashflows from operating activities
Profit before tax		9,747,470		10,822,768
Adjustments for:
(Gains)/losses on investments		(8,430,299	)	(9,821,000	)
Purchase of investments		(6,332,704	)	(3,298,352	)
Proceeds of investments		1,537,780		5,971,190
Movement in trading investments		(50,423	)	(14,823	)
Operating cash flows before movements in working capital		(3,528,176	)	3,659,783
Decrease/(increase) in receivables		(364,339	)	(3,808	)
Increase/(decrease) in payables		(100,306	)	(215,951	)
Net cash from operating activities before income taxes		(3,992,821	)	3,440,024
Income taxes paid		-		-
Net cash from operating activities		(3,992,821	)	3,440,024
Cash flows from financing activities
Dividends paid		(470,885	)	(439,110	)
Net cash (used in)/from financing activities		(470,885	)	(439,110	)
Net (decrease)/increase in cash and cash equivalents		(4,463,706	)	3,000,914
Cash and cash equivalents at beginning of year		8,476,315		2,907,025
Cash and cash equivalents at end of period		4,012,609		5,907,939

NOTES TO THE HALF YEARLY FINANCIAL REPORT

for the six months ended 30th June 2013

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

		2013		2012
Amounts recognised as distributions to equity holders in the period:
Income (Paid)
Final dividend for the year ended 31st December 2012 of 18.25p (2011: 17.0p) per share		448,950		418,200
Capital (Paid)
Final dividend for the year ended 31st December 2012 of 1.3375p (2011: 1.2750p) per share		21,935		20,910
Capital Supplementary (Accrued)
Payable 2nd January 2014 of 81.8293p (2013: 69.4878p) per share		671,000		569,800
Dividends on non-equity shares:
Cumulative preference 5.5% (Accrued)		5,500		5,500
		1,147,385		1,014,410
Income
Proposed interim dividend for the year ended 31st December 2013 of 9.5p (2012: 8.5p) per share		233,700		209,100

This was approved by the Board on 18th July 2013 and has not been included as a liability at 30th June 2013.

3.        Income

		2013		2012
Total income comprises:
Dividends		1,455,256		1,068,609
Interest		787		614
Other income		158,030		146,063
		1,614,073		1,215,286

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 £158,030 (2012: £146,063) and the amount owed by the Fund at the period end was £27,387 (2012: £23,074).

5.        Going concern

The Directors believe that it is appropriate to adopt the going concern basis in preparing the financial statements. The assets of the Company consist mainly of securities that are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future.

DIRECTORS' STATEMENT OF RESPONSIBILITY FOR THE HALF YEARLY FINANCIAL 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 18th July 2013.

Dr D. M. Bramwell

Chairman

TOP TEN HOLDINGS

Holding		Investment		Value £
2,700,000		Brammer		8,694,000
10,425,000		Scapa Group		8,444,250
1,155,000		Treatt		7,045,500
1,625,000		RPC Group		6,638,125
1,800,000		VP		6,516,000
1,434,230		Hill & Smith Holdings		6,192,288
2,100,000		Colefax Group		4,725,000
15,659,184		Macfarlane Group		4,384,572
764,325		British Polythene Ind		4,180,858
125,185		Spirax Sarco Eng		3,362,469

 

END

 

 

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