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

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LLFFLDRILLIS
UK 100