Interim Results

RNS Number : 3893A

Rights and Issues Inv Trust PLC

01 August 2008

 

HALF YEARLY MANAGEMENT REPORT

for the six months ended 30th June 2008

CHAIRMAN'S STATEMENT

The weak performance of the UK equity market during the last six months follows the major shift seen during 2007. In particular, the further underperformance of the UK smaller company sector confirms that the sector is now caught in a significant bear market. The FTSE All-Share index was down by 13.1% while the FTSE Small Cap index fell by 16.1% and the FTSE Fledgling also fell by 14.0%.

The Trust continues to be impacted by the poor performance of UK smaller companies and the net asset value of capital shares declined by 12.4% to 2926.3p.

The interim dividend has been increased to 16.0p per income share and the board expects, barring unforeseen circumstances, to pay a final of not less than 30.5p per income share.

July has so far proved to be very disappointing with further poor performance in the smaller company sector.

Simon Knott
Chairman
August 2008

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 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.

CONDENSED CONSOLIDATED INCOME STATEMENT

for the six months ended 30th June 2008

		Six months ended 30th June 2008
		Revenue		Capital		Total
		£		£		£
Investment income		1,114,231		-		1,114,231
Other operating income		358,772		-		358,772
Total income		1,473,003		-		1,473,003
Gains/(Losses) on fair value
through profit or loss assets		(108,494	)	(9,065,365	)	(9,173,859	)
		1,364,509		(9,065,365	)	(7,700,856	)
Expenses
Investment management fee		-		-		-
Other expenses		266,601		-		266,601
Profit before tax		1,097,908		(9,065,365	)	(7,967,457	)
Tax		-		-		-
Profit for the period		1,097,908		(9,065,365	)	(7,967,457	)
The total column relates to the group's
income statement
Earnings per share
Return per income share (p)		20.8p		(92.1	)p	(71.3	)p
Return per capital share (p)		35.4p		(414.6	)p	(379.2	)p

The interim dividend of 16.0p net (2007: 15.5p net) per income share and amounting to £393,600 (2007: £381,300) is payable on 30th September 2008 to shareholders on the register as at 29th August 2008. 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 2007						Twelve months ended 31st December 2007
Revenue		Capital		Total		Revenue		Capital		Total
£		£		£		£		£		£
1,035,560		-		1,035,560		2,148,467		-		2,148,467
429,235		-		429,235		902,022		-		902,022
1,464,795		-		1,464,795		3,050,489		-		3,050,489
50,234		8,508,411		8,558,645		(48,570	)	(7,171,726	)	(7,220,296	)
1,515,029		8,508,411		10,023,440		3,001,919		(7,171,726	)	(4,169,807	)
-		-		-		-		-		-
261,311		-		261,311		533,232		-		533,232
1,253,718		8,508,411		9,762,129		2,468,687		(7,171,726	)	(4,703,039	)
54,460		-		54,460		86,213		-		86,213
1,199,258		8,508,411		9,707,669		2,382,474		(7,171,726	)	(4,789,252	)
24.8p		86.5p		111.3p		48.9p		(72.9	)p	(24.0	)p
35.6p		389.1p		424.7p		71.1p		(328.0	)p	(256.9	)p

These are not full statutory accounts in terms of Section 240 of the Companies Act 1985. The full audited accounts for the year to 31st December 2007, have been filed with the Registrar of Companies.

The auditors' report on those accounts was not qualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.

CONDENSED CONSOLIDATED BALANCE SHEET

as at 30th June 2008

		30th June 2008		30th June 2007		31st December 2007
		£		£		£
Non-current assets
Goodwill		65,191		65,191		65,191
Investments - Fair value through profit or loss		62,848,563		87,608,470		71,928,333
		62,913,754		87,673,661		71,993,524
Current Assets
Trading investments		550,217		293,898		619,797
Trade and other receivables		534,826		348,100		313,080
Amounts due from group undertakings		-		-		-
Cash and cash equivalents		3,680,281		4,141,030		3,692,284
		4,765,324		4,783,028		4,625,161
Total Assets		67,679,078		92,456,689		76,618,685
Current Liabilities
Trade and other payables		961,499		908,931		576,930
Current tax payable		86,813		145,895		86,813
		1,048,312		1,054,826		663,743
Total assets less current liabilities		66,630,766		91,401,863		75,954,942
Net Assets		66,630,766		91,401,863		75,954,942
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		40,682,762		40,668,355		40,668,355
Revaluation reserve		22,450,307		47,210,215		31,530,078
Dividend equalisation reserve		2,047,371		2,072,967		2,306,183
Total equity		66,630,766		91,401,863		75,954,942
Net asset value per share
Income shares		749.6p		1,002.1p		851.4p
Capital shares		2,926.3p		4,058.0p		3,342.1p

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30th June 2008

		Share capital			Share premium account			Capital reserve			Revaluation reserve			Dividend equalisation reserve			Total
		£			£			£			£			£			£
For the six months ended June 2007
Balance at 31st December 2006		1,225,000			225,326			41,235,990			38,134,169			2,203,779			83,024,264
Profit for the period		-			-			(567,635)			9,076,046			1,199,258			9,707,669
Total recognised income and expense		1,225,000			225,326			40,668,355			47,210,215			3,403,037			92,731,933
Dividends		-			-			-			-			(1,330,070)			(1,330,070)
Balance at 30th June 2007		1,225,000			225,326			40,668,355			47,210,215			2,072,967			91,401,863

For the six months ended June 2008
Balance at 31st December 2007		1,225,000			225,326			40,668,355			31,530,078			2,306,183			75,954,942
Profit for the period		-			-			14,407			(9,079,771)			1,097,908			(7,967,456)
Total recognised income and expense		1,225,000			225,326			40,682,762			22,450,307			3,404,091			67,987,486
Dividends		-			-			-			-			(1,356,720)			(1,356,720)
Balance at 30th June 2008		1,225,000			225,326			40,682,762			22,450,307			2,047,371			66,630,766

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30th June 2008

		Six months ended 30th June 2008			Six months ended 30th June 2007
		£			£
Cashflows from operating activities
Profit before tax		(7,967,457)			9,762,129
Adjustments for:
(Gains)/losses on investments		9,079,771			(8,508,411)
Purchase of investments		-			(2,255,670)
Proceeds of investments		-			3,455,922
Movement in trading investments		69,580			115,828
Operating cash flows before movements in working capital		1,181,894			2,569,796
Decrease/(increase) in receivables		(221,746)			36,341
Increase/(decrease) in payables		(184,131)			(260,332)
Net cash from operating activities before income taxes		776,017			2,345,805
Income taxes paid		-			-
Net cash from operating activities		776,017			2,345,805
Cash flows from financing activities
Dividends paid		(788,020)			(761,370)
Net cash (used in)/from financing activities		(788,020)			(761,370)
Net increase/(decrease) in cash and cash equivalents		(12,003)			1,584,435
Cash and cash equivalents at beginning of year		3,692,284			2,556,595
Cash and cash equivalents at end of period		3,680,281			4,141,030

NOTES TO THE CONDENSED HALF YEARLY FINANCIAL REPORT

for the six months ended 30th June 2008

1.    Accounting Standards

The condensed interim financial report has been prepared in accordance with International Financial Reporting Standard (IFRSs), including IAS 34 'Interim financial reporting'. 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

		2008		2007
Amounts recognised as distributions to equity holders in the period:
Income (Paid)
Final dividend for the year ended 31st December 2007 of 30.5p (2006: 29.5p) per share		750,300		725,700
Capital (Paid)
Final dividend for the year ended 31st December 2007 of 2.3000p (2006: 2.1750p) per share		37,300		35,670
Capital Supplementary (Accrued)
Payable 2nd January 2009 of 68.6829p (2008: 68.6829p) per share		563,200		563,200
Dividends on non-equity shares:
Cumulative preference 5.5% (Accrued)		5,500		5,500
		1,356,300		1,330,070
Income
Proposed interim dividend for the year ended 31st December 2008 of 16.0p (2007: 15.5p) per share		393,600		381,300

This was approved by the Board on 1st August 2008 and has not been included as a liability at 30th June 2008.

3.    Income

		2008		2007
Total income comprises:
Dividends		1,114,231		1,035,560
Interest		80,446		76,136
Other income		278,326		353,099
		1,473,003		1,464,795

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 £278,326 (2007: £353,099) and the amount owed by the Fund at the period end was £5,578 (2007: £33,016).

DIRECTORS' STATEMENT OF RESPONSIBILITY FOR THE HALF YEARLY REPORT

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.

S. H. J. A. Knott
Chairman

August 2008

APPENDIX

	TOP TEN HOLDINGS
	Holding		Investment		Value £
	2,700,000		RPS Group		8,086,500
	1,673,038		Hill & Smith Holdings		5,336,991
	1,283,333		White Young Green		4,234,999
	3,000,000		Low & Bonar		3,307,500
	2,100,000		Colefax Group		3,297,000
	10,425,000		Scapa Group		2,971,125
	500,000		Thorpe F.W.		2,825,000
	1,000,000		VP		2,592,500
	3,075,000		Eleco Holdings		2,490,750
	1,500,000		Celsis Int'l		2,370,000

 

END

 

 

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