Half Yearly Report

RNS Number : 1132M

Rights and Issues Inv Trust PLC

11 July 2014

 



HALF YEARLY FINANCIALREPORT

for the six months ended 30th June 2014

CHAIRMAN'S STATEMENT

The first half of 2014 has been much quieter with the FTSE All-Share Index registering a fall of -0.3%.

The Trust progressed with a 3.2% rise in the net asset value of the capital shares to 5708.8p. The Trust benefited as smaller companies again outperformed their larger peers.

During the six months, the repurchase of the Preference Class was completed at a cost of

£250,000, not including professional expenses.

The interim dividend is being increased to 10.5p per income share. The capital progress achieved by the Trust in recent years continues to generate income improvements.

The current indecision of the stock market is a product of the competing forces which it faces. The UK economy is undoubtedly recovering but valuations are already high and interest rate rises will follow. Competitive pressures can also suddenly intensify to the detriment of corporate profitability. Still, it is encouraging to see the solid operating performances achieved by so many of the Trust's major investments.

Dr D. M. Bramwell

Chairman

July 2014

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.

Risksand 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 Company's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The Company's results continue to be exposed to the risk of market price. Further information on the principal long-term risks and uncertainties of the Company is included in the latest annual report.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30th June 2014

Six months ended 30th June 2014

	Revenue		Capital		Total
	£		£		£
Investment income	1,492,429		-		1,492,429
Other operating income	198,490		-		198,490
Total income	1,690,919		-		1,690,919

Gains/(Losses) on fair value

through profit or loss assets	20,429		3,931,346		3,951,775
	1,711,348		3,931,346		5,642,694
Expenses Investment management fee	-		-		-
Other expenses	360,418		-		360,418
	360,418		-		360,418
Profit before tax Tax	1,350,930 -		3,931,346 -		5,282,276 -
Profit for the period	1,350,930		3,931,346		5,282,276
Earnings per share
Return per income share (p)	23.3p		39.9p		63.2p
Return per capital share (p)	44.3p		179.8p		224.1p

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 10.5p net (2013: 9.5p net) per income share and amounting to £258,300 (2013:

£233,700) is payable on 30th September 2014 to shareholders on the register as at 29th August 2014. 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 2013                                     Year ended 31st December 2013

Revenue £		Capital £	Total £		Revenue £	Capital £	Total £
1,456,043		-	1,456,043		2,869,243	-	2,869,243
158,030		-	158,030		340,063	-	340,063
1,614,073		-	1,614,073		3,209,306	-	3,209,306
34,999		8,430,299	8,465,298		237,002	36,746,082	36,983,084
1,649,072		8,430,299	10,079,371		3,446,308	36,746,082	40,192,390
-		-	-		-	-	-
331,901		-	331,901		738,842	-	738,842
331,901		-	331,901		738,842	-	738,842
1,317,171		8,430,299	9,747,470		2,707,466	36,746,082	39,453,548
-		-	-		-	-	-
1,317,171		8,430,299	9,747,470		2,707,466	36,746,082	39,453,548
25.2p		85.7p	110.9p		53.3p	373.4p	426.7p
42.2p		385.5p	427.7p		84.5p	1680.5p	1765.0p

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 2014 and 30th June 2013 has not been audited.

The information for the year ended 31st December 2013 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) or (4) of the Companies Act 2006.

The auditors have reviewed the financial information for the six months ended 30th June 2014 pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

CONSOLIDATED BALANCE SHEET

as at 30th June 2014

	30th June 2014 £		30th June 2013 £		31st December 2013 £
Non-current assets Goodwill	65,191		65,191		65,191
Investments - Fair value through profit or loss	122,314,380		90,276,847		117,784,849
	122,379,571		90,342,038		117,850,040
Current Assets Trading investments	509,248		697,007		772,828
Trade and other receivables	819,059		745,355		617,202
Cash and cash equivalents	4,509,908		4,012,609		4,564,412
	5,838,215		5,454,971		5,954,442
Total Assets	128,217,786		95,797,009		123,804,482
Current Liabilities Trade and other payables	971,036		886,912		98,508
Current tax payable	-		-		-
	971,036		886,912		98,508
Total assets less current liabilities	127,246,750		94,910,097		123,705,974
Net Assets	127,246,750		94,910,097		123,705,974
Equity Called up share capital	1,025,000		1,225,000		1,225,000
Share premium account Retained reserves: Capital reserve	225,326 51,973,014		225,326 50,156,680		225,326 51,796,430
Revaluation reserve	72,007,234		41,576,439		68,252,472
Dividend equalisation reserve	2,016,176		1,726,652		2,206,746
Total equity	127,246,750		94,910,097		123,705,974
Net asset value per share Income shares	1366.7p		1027.6p		1334.0p
Capital shares	5708.8p		4233.6p		5529.9p

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30th June 2014

				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

				Share						Dividend
		Share		premium		Capital		Revaluation		equalisation
		capital		account		reserve		reserve		reserve		Total
		£		£		£		£		£		£
For the six months
ended June 2014
Balance at
31st December 2013		1,225,000		225,326		51,796,430		68,252,472		2,206,746		123,705,974
Profit for the period		-		-		176,584		3,754,762		1,350,930		5,282,276
Total recognised income and expense		1,225,000		225,326		51,973,014		72,007,234		3,557,676		128,988,250
Dividends		-		-		-		-		(1,491,500)		(1,491,500)
Balance at
30th June 2014		1,225,000		225,326		51,973,014		72,007,234		2,016,176		127,246,750

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30th June 2014

	Group 2014		Group 2013
	£		£
Cashflows from operating activities
Profit before tax	5,282,276		9,747,470
Adjustments for:
(Gains)/losses on investments	(3,931,346)		(8,430,299)
Purchase of investments	(1,793,489)		(6,332,704)
Proceeds of investments	1,195,304		1,537,780
Movement in trading investments	263,580		(50,423)
Operating cash flows before movements in working capital	1,016,325		(3,528,176)
Decrease/(increase) in receivables	(201,857)		(364,339)
Increase/(decrease) in payables	164,128		(100,306)
Net cash from operating activities before income taxes	978,596		(3,992,821)
Income taxes paid	-		-
Net cash from operating activities	978,596		(3,992,821)
Cash flows from financing activities
Preference shares redeemed	(250,000)		-
Dividends paid	(783,100)		(470,885)
Net cash (used in)/from financing activities	(1,033,100)		(470,885)
Net increase/(decrease) in cash and cash equivalents	(54,504)		(4,463,706)
Cash and cash equivalents at beginning of year	4,564,412		8,476,315
Cash and cash equivalents at end of period	4,509,908		4,012,609

NOTES TO THE HALF YEARLY FINANCIALREPORT

for the six months ended 30th June 2014

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                                                                                           2014                  2013

Amounts recognised as distributions to equity holders in the period:

Income (Paid)

Final dividend for the year ended 31st December 2013

of 20.50p (2012: 18.25p) per share                                            504,300             448,950

Special dividend for the year ended 31st December 2013

of 10.00p (2012: 00.00p) per share                                            246,000                      -

Capital (Paid)

Final dividend for the year ended 31st December 2013

of 1.50p (2012: 1.3375p) per share                                              24,600               21,935

Special dividend for the year ended 31st December 2013

of 0.50p (2012: 00.00p) per share Capital Supplementary (Accrued)	8,200		-
Payable 2nd January 2015 of 86.3902p (2014: 81.8293p) per share	708,400		671,000
Dividends on non-equity shares: Cumulative preference 5.5% (Accrued)	-		5,500
	1,491,500		1,147,385
Income Proposed interim dividend for the year ended 31st December 2014 of 10.5p (2013: 9.5p) per share	258,300		233,700

This was approved by the Board on 11th July 2014 and has not been included as a liabilityat 30th June 2014.

3.   Income

Total income comprises: Dividends

Interest  Other income

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 £198,490 (2013: £158,030) and the amount owed by the Fund at the period end was £27,488 (2013: £27,387).

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.                                                                7

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 condensedset of financial statements has been prepared in accordance with IAS 34 "Interimfinancial reporting"; and

•         the half yearly management report includesa fair review of the information required by DTR 4.2.7R and 4.2.8R.

This report was approved on 11th July 2014.

Dr D. M. Bramwell

Chairman

TOP TEN HOLDINGS

Holding	Investment	Value £
10,425,000	Scapa Group	13,265,813
2,700,000	Brammer	12,318,750
1,800,000	VP	12,159,000
1,625,000	RPC Group	10,180,625
5,775,000	Treatt	9,990,750
2,050,000	Colefax Group	7,585,000
1,434,230	Hill & Smith Holdings	7,214,777
15,659,184	Macfarlane Group	5,989,638
8,480,000	Renold	5,384,800
764,325	British Polythene Ind	4,983,399

 

 

END

 

 

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