Half Yearly Results

RNS Number : 1566S

RIT Capital Partners PLC

28 November 2012

 



HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

http://www.rns-pdf.londonstockexchange.com/rns/1566S_-2012-11-27.pdf

FINANCIAL SUMMARY

	30 September 2012	31 March 2012	% Change
Net assets	£1,842m	£1,920m	(4.1)1
Market capitalisation	£1,764m	£1,877m	(6.1)
Shares outstanding	155,382,241	153,866,062	1.0
NAV per share2	1,188.1p	1,249.3p	(4.9)
Share price	1,135.0p	1,220.0p	(7.0)
Discount	-4.5%	-2.3%
Dividend paid per share	28.0p	4.0p	600.0
Debt/Net assets	8.3%	13.3%	(37.6)

1:The 30 September 2012 net assets of £1,842m is after paying a full year dividend of £43m (2.2% of opening net assets) and the £19m share issuance (1.0% of net assets)

2: Unless otherwise stated NAV per share is diluted NAV per share taking into account the effect of Share Appreciation Rights and shares held in the Employee Benefit Trust

PERFORMANCE

	Percentage Changes to Date
	6 Months	Calendar YTD	5 Years	10 Years
NAV per share total return	(2.6)	5.1	9.9	197.6
Share price total return	(4.7)	(5.0)	8.2	225.8
MSCI World (£) total return	0.6	9.0	16.7	122.0
NAV per share	(4.9)	2.6	5.4	179.1
Share price	(7.0)	(7.3)	3.7	205.1
MSCI World (£)	(1.0)	6.5	1.4	72.7

"The next ten years may well offer quite different opportunities to the past ten …  We intend to focus our investments on such individual situations and on external managers who recognise the new realities.  Over time we are confident that this concentration, together with relentless attention to detail on all our investments, will see us outperform markets."  Lord Rothschild

The following is the Chairman's Statement which will appear in the Half-Yearly Financial Report

"We are living through a period of unparalleled complexity and uncertainty."  These words remain as regrettably true today as when I wrote them in my report to you two years ago.  To avoid the situation becoming even worse, governments continue to roll their printing presses in one form or another.  Their actions prevent systemic collapse but the deeper underlying problems remain.

Easy money and low interest rates have propped up markets, most of which have traded strongly in the past few months.  Investors have been reaching further along the risk curve in their search for yield, a solution we have declined to take for RIT investors.  Since the start of our financial year in April to the end of September, our NAV per share declined by 4.9% to 1,188.1 pence.  On a total return basis (with dividends reinvested) this represents a decrease of 2.6%.  Over the same period, the MSCI World Total Return Index (£) increased by 0.6%.  Some half of the decline was accounted for by some of our defensive hedges moving against us in a rising market.  The other negative factor was underperformance by a few externally managed portfolios.  We have taken active steps to address this.

We take the view that your Company is unlikely to be successful in playing the game of "risk-on/risk-off" investing, or of making tactical shifts in our portfolio to catch the moves that have been such a feature of recent months.  We stay true instead to our belief in investment fundamentals.  This has stood us in good stead through our long history - over the ten years to the end of September 2012 our NAV per share increased by 179% compared to an increase in the MSCI World Index (£) of 73%.  If this means we lag temporary spikes in the market, so be it.  It is a necessary, and we trust rare, cost of protecting your capital.

The next ten years may well offer quite different opportunities to the past ten.  For instance, many major global companies have attractive fundamental valuations based on proven cash flow, supported by strong balance sheets and access to historically cheap money.  We intend to focus our investments on such individual situations and on external managers who recognise the new realities.  Over time we are confident that this concentration, together with relentless attention to detail on all our investments, will see us outperform markets.  Across our public equity portfolio, we continue to seek investments that will be driven by fundamentals rather than government actions alone.  In particular, we have increased our exposure to technology in the USA.  As a response to central banks' monetary loosening, we have increased our position in gold.

Outside public markets, we have had a particularly active start to this year with successful realisations in two of our largest private investments, Harbourmaster and Agora, realising profits of £145 million.  Half of the stake in Brazil's leading investment bank, BTG Pactual, was made available at the time of the company's IPO, at a profit in excess of 30%.  Earlier this year, we founded Tamar Energy, a renewables company focused on anaerobic digestion.  The company has now attracted close to £100m of funding from a group of leading investors.  We have completed our investment in Rockefeller & Co. having received regulatory approval.  Our joint venture with the Edmond de Rothschild Group is now established and we are working together to find new opportunities for our private investment portfolio.  The J. Rothschild CREAT private equity fund has held a first close with a number of Chinese limited partners.  We are at an advanced stage in assessing opportunities for this fund, and intend to start deploying capital once the required government approvals have been received.    Following the acquisition of a minority interest in the general partnership of Corsair Capital, we are co-operating closely with Corsair in seeking out opportunities in the financial sector.

We previously announced that Rick Sopher and Bill Winters have joined the board of our principal operating subsidiary, J. Rothschild Capital Management (JRCM), having not sought re-election to the RIT Board.  They will be joined on the JRCM Board by Reuben Jeffery III, the CEO of Rockefeller & Co., by Ignacio Jayanti and Lord Davies from Corsair, and by John Cornish, who will serve on both the RIT and JRCM Boards.  Our Executive Committee are members of the JRCM Board.

As we announced at the AGM, after fourteen years on the Board of RIT, including the past four as Investment Director, Micky Breuer-Weil has left the Company.  I would like to place on record, on behalf of shareholders and our Board, our appreciation for Micky's significant contribution to your Company's success over the years and convey our best wishes to him for the future.

We were delighted to welcome Ron Tabbouche as Investment Director in September.  Ron brings a new perspective to our business and we wish him a long and successful career with RIT.

Given our change to a December year-end, our next report will be for the nine months ended 31 December 2012; thereafter we will be on a calendar year cycle.

Rothschild

27 November 2012

Enquiries: 020 7514 1923

ATTRIBUTION ANALYSIS

The Company's net asset value as at 30 September 2012 was £1,842.1 million (31 March 2012: £1,920.0 million). This represents a decrease of £77.9 million which is analysed below:

	£ million	£ million	Pence per share	Pence per share
Net asset value at 30 September 2012		1,842.1		1,188.1
Net asset value at 31 March 2012		1,920.0		1,249.3
Change in net asset value		(77.9)		(61.2)
Analysis of changes in net asset value:
Quoted Equity - Internally Managed1	(8.8)		(5.7)
Quoted Equity - Externally Managed	(17.9)		(11.6)
Unquoted Investments - Direct	(1.9)		(1.2)
Unquoted Investments - Funds	3.5		2.3
Real Assets	0.4		0.3
Absolute Return & Credit
Government Bonds and Currency1	(10.3)		(6.7)
		(35.0)		(22.6)
Movements on liquidity/borrowings and other
Income	0.5		0.3
Administrative expenses	(9.5)		(6.2)
Investment management fees	(2.4)		(1.6)
		(11.4)		(7.5)
Finance costs	(3.6)		(2.3)
Taxation	(0.8)		(0.5)
		(4.4)		(2.8)
Loss for the year		(50.8)		(32.9)
Dividends	(43.0)		(28.0)
Share issue	18.8		1.6
Other reserve movements	(2.9)		(1.9)
		(27.1)		(28.3)
Change in net asset value		(77.9)		(61.2)

¹These categories include the cost of defensive hedges

NET ASSET VALUE BY CATEGORY (%)

	30 September 2012   % of net assets	31 March 2012 % of net assets
Quoted Equity - Internally Managed	16.9	18.7
Quoted Equity - Externally Managed	46.9	45.0
Unquoted Investments - Direct	11.9	15.5
Unquoted Investments - Funds	14.6	13.7
Real Assets	6.7	5.8
Absolute Return & Credit, Government Bonds and Currency	5.3	7.2
Net Liquidity/Borrowing	(2.3)	(5.9)
Total net assets	100.0	100.0

Statement of Directors' Responsibilities

In accordance with the Disclosure and Transparency Rules 4.2.4R, 4.2.7R and 4.2.8R, we confirm that to the best of our knowledge:

(a)    The condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union, as required by the Disclosure and Transparency Rule 4.2.4R;

(b)    The Chairman's Statement includes a fair review of the information required to be disclosed under the Disclosure and Transparency Rule 4.2.7R, interim management report. This includes an indication of important events that have occurred during the first six months of the financial year, and their impact on the condensed set of financial statements presented in the half-yearly financial report. A description of the principal risks and uncertainties for the remaining three months of the financial year is set out below; and

(c)    There were no changes in the transactions or arrangements with related parties as described in the Group's Annual Report and Accounts for the year ended 31 March 2012 that would have had a material effect on the financial position or performance of the Group in the first six months of the current financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the Group are referred to in the Chairman's Statement. As with any investment company, the main risk is market risk. The key risks facing the Group's activities for the second half of the financial year are substantially the same as those described in the Annual Report and Accounts for the year ended 31 March 2012.

GOING CONCERN

The factors likely to effect the Group's ability to continue as a going concern were set out in the Annual Report and Accounts for the year ended 31 March 2012. As at 30 September 2012, there have been no significant changes to these factors. Having reviewed the Company's forecasts and other relevant evidence, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half-yearly condensed financial statements.

Rothschild

27 November 2012

For and on behalf of the Board, the current members of which are listed on page 21 of the Half-Yearly Financial Report.

CONSOLIDATED INCOME STATEMENT

For the six months ended 30 September 2012	Notes	Revenue return £ million	Capital return £ million	Total £ million
Income
Investment income		8.2	-	8.2
Other income		2.0	-	2.0
Gains/(losses) on dealing investments held at fair value		(10.5)	-	(10.5)
Total income		(0.3)	-	(0.3)
Gains/(losses) on portfolio investments held at fair value		-	(33.8)	(33.8)
Exchange gains/(losses) on monetary items and borrowings		-	(0.4)	(0.4)
		(0.3)	(34.2)	(34.5)
Expenses
Administrative expenses		(9.0)	(0.5)	(9.5)
Investment management fees		(1.8)	(0.6)	(2.4)
Profit/(loss) before finance costs and tax		(11.1)	(35.3)	(46.4)
Finance costs		(3.6)	-	(3.6)
Profit/(loss) before tax		(14.7)	(35.3)	(50.0)
Taxation		(0.8)	-	(0.8)
Profit/(loss) for the period	2	(15.5)	(35.3)	(50.8)
Earnings per ordinary share - basic and diluted	2	(10.1p)	(22.9p)	(33.0p)

The total column of this statement represents the Group's Consolidated Income Statement, prepared in accordance with International Financial Reporting Standards (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. The notes on pages 18 to 19 are an integral part of these condensed interim financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2012	Revenue return £ million	Capital return £ million	Total £ million
Profit/(loss) for the period	(15.5)	(35.3)	(50.8)
Other comprehensive income/(expense)
Exchange movements arising on consolidation	-	-	-
Actuarial gain/(loss) in defined benefit pension plan	(1.0)	-	(1.0)
Total comprehensive income/(expense) for the period	(16.5)	(35.3)	(51.8)

CONSOLIDATED INCOME STATEMENT

For the six months ended 30 September 2011	Notes	Revenue return £ million	Capital return £ million	Total £ million
Income
Investment income		18.7	-	18.7
Other income		0.4	-	0.4
Gains/(losses) on dealing investments held at fair value		12.3	-	12.3
Total income		31.4	-	31.4
Gains/(losses) on portfolio investments held at fair value		-	(186.6)	(186.6)
Exchange gains/(losses) on monetary items and borrowings		-	(7.4)	(7.4)
		31.4	(194.0)	(162.6)
Expenses
Administrative expenses		(7.9)	(0.7)	(8.6)
Investment management fees		(1.7)	0.1	(1.6)
Profit/(loss) before finance costs and tax		21.8	(194.6)	(172.8)
Finance costs		(8.6)	-	(8.6)
Profit/(loss) before tax		13.2	(194.6)	(181.4)
Taxation		(0.8)	-	(0.8)
Profit/(loss) for the period	2	12.4	(194.6)	(182.2)
Earnings per ordinary share - basic and diluted	2	8.1p	(126.5p)	(118.4p)

The total column of this statement represents the Group's Consolidated Income Statement, 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. The notes on pages 18 to 19 are an integral part of these condensed interim financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2011	Revenue return  £ million	Capital return £ million	Total £ million
Profit/(loss) for the period	12.4	(194.6)	(182.2)
Other comprehensive income/(expense)
Exchange movements arising on consolidation	(0.1)	-	(0.1)
Actuarial gain/(loss) in defined benefit pension plan	(1.9)	-	(1.9)
Total comprehensive income/(expense) for the period	10.4	(194.6)	(184.2)

CONSOLIDATED INCOME STATEMENT

For the year ended 31 March 2012	Notes	Revenue return £ million	Capital return £ million	Total £ million
Income
Investment income		27.8	-	27.8
Other income		3.0	-	3.0
Gains/(losses) on dealing investments held at fair value		13.8	-	13.8
Total income		44.6	-	44.6
Gains/(losses) on portfolio investments held at fair value		-	(61.1)	(61.1)
Exchange gains/(losses) on monetary items and borrowings		-	(2.6)	(2.6)
		44.6	(63.7)	(19.1)
Expenses
Administrative expenses		(18.3)	(2.0)	(20.3)
Investment management fees		(3.8)	(0.5)	(4.3)
Profit/(loss) before finance costs and tax		22.5	(66.2)	(43.7)
Finance costs		(12.1)	-	(12.1)
Profit/(loss) before tax		10.4	(66.2)	(55.8)
Taxation		1.3	(0.4)	0.9
Profit/(loss) for the year	2	11.7	(66.6)	(54.9)
Earnings per ordinary share - basic and diluted	2	7.6p	(43.3p)	(35.7p)

The total column of this statement represents the Group's Consolidated Income Statement, 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. The notes on pages 18 to 19 are an integral part of these condensed interim financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2012	Revenue return £ million	Capital return £ million	Total £ million
Profit/(loss) for the period	11.7	(66.6)	(54.9)
Other comprehensive income/(expense)
Exchange movements arising on consolidation	-	-	-
Actuarial gain/(loss) in defined benefit pension plan	(2.8)	-	(2.8)
Total comprehensive income/(expense) for the period	8.9	(66.6)	(57.7)

Consolidated Balance Sheet

	Notes	30 September 2012 £ million	31 March 2012  £ million	30 September 2011 £ million
Non-current assets
Investments held at fair value		1,892.4	2,024.1	1,762.6
Investment property		44.4	40.4	37.6
Property, plant and equipment		0.2	0.3	0.3
Deferred tax asset		2.0	2.7	2.8
		1,939.0	2,067.5	1,803.3
Current assets
Derivative financial instruments		20.6	27.2	53.5
Sales for future settlement		2.7	7.7	30.9
Other receivables		18.4	31.5	4.4
Tax receivable		0.6	0.9	0.8
Cash at bank		78.9	75.1	214.0
		121.2	142.4	303.6
Total assets		2,060.2	2,209.9	2,106.9
Current liabilities
Bank loans and overdrafts		(148.6)	(250.1)	(255.6)
Purchases for future settlement		(33.6)	(8.1)	(2.3)
Derivative financial instruments		(19.9)	(13.8)	(35.1)
Provisions		(0.7)	(0.9)	(0.9)
Tax payable		(0.1)	(0.1)	(0.8)
Other payables		(3.5)	(4.8)	(6.0)
		(206.4)	(277.8)	(300.7)
Net current assets/(liabilities)		(85.2)	(135.4)	2.9
Total assets less current liabilities		1,853.8	1,932.1	1,806.2
Non-current liabilities
Derivative financial instruments		(4.1)	(4.7)	(5.9)
Provisions		(5.4)	(5.6)	(4.5)
Finance lease liability		(0.5)	(0.5)	(1.4)
Retirement benefit liability		(1.7)	(1.3)	(0.5)
		(11.7)	(12.1)	(12.3)
Net assets		1,842.1	1,920.0	1,793.9
Equity attributable to equity holders
Share capital		155.4	153.9	153.9
Share premium		17.3	-	-
Capital redemption reserve		36.3	36.3	36.3
Own shares reserve		(6.4)	(5.8)	(4.5)
Share based payment reserve		4.4	5.7	4.8
Foreign currency translation reserve		0.2	0.2	0.1
Capital reserve		1,600.5	1,666.8	1,538.8
Revenue reserve		34.4	62.9	64.5
Total shareholders' equity		1,842.1	1,920.0	1,793.9
Net asset value per ordinary share - basic	3	1,189.0p	1,251.7p	1,168.7p
Net asset value per ordinary share - diluted	3	1,188.1p	1,249.3p	1,165.9p

Consolidated Statement of Changes in Equity

Six months ended 30 September 2012	Share capital £million	Share premium £million	Capital redemption reserve £million	Own shares reserve £million	Share based payment reserve £million	Foreign currency translation reserve £million	Capital reserve £million	Revenue reserve £million	Total £million
Balance at 31 March 2012	153.9		36.3	(5.8)	5.7	0.2	1,666.8	62.9	1,920.0
Issue of shares	1.5	17.3	-	-	-	-	-	-	18.8
Profit/(loss) for the period	-	-	-	-	-	-	(35.3)	(15.5)	(50.8)
Movement in own shares
reserve	-	-	-	(0.6)	-	-	-	-	(0.6)
Movement in share based reserve
payment reserve	-	-	-	-	(1.3)	-	-	-	(1.3)
Ordinary dividend paid	-	-	-	-	-	-	(31.0)	(12.0)	(43.0)
Other comprehensive income/
(expense):
Exchange movements arising
on consolidation	-	-	-	-	-	-	-	-	-
Actuarial gain/(loss) in defined
benefit pension plan	-		-	-	-	-	-	(1.0)	(1.0)
Balance at 30 September 2012	155.4	17.3	36.3	(6.4)	4.4	0.2	1,600.5	34.4	1,842.1

Six months ended 30 September 2011	Share capital £million	Capital redemption reserve £million	Own shares reserve £million	Share based payment reserve £million	Foreign currency translation reserve £million	Capital reserve £million	Revenue reserve £million	Total £million
Balance at 31 March 2011	153.9	36.3	-	-	0.2	1,733.4	60.2	1,984.0
Profit/(loss) for the period	-	-	-	-	-	(194.6)	12.4	(182.2)
Movement in own shares reserve	-	-	(4.5)	-	-	-	-	(4.5)
Movement in share based
payment reserve	-	-	-	4.8	-	-	-	4.8
Ordinary dividend paid	-	-	-	-	-	-	(6.2)	(6.2)
Other comprehensive income/
(expense):
Exchange movements arising
on consolidation	-	-	-	-	(0.1)	-	-	(0.1)
Actuarial gain/(loss) in defined
benefit pension plan	-	-	-	-	-	-	(1.9)	(1.9)
Balance at 30 September 2011	153.9	36.3	(4.5)	4.8	0.1	1,538.8	64.5	1,793.9

Year ended 31 March 2012	Share capital £million	Capital redemption reserve £million	Own shares reserve £million	Share based payment reserve £million	Foreign currency translation reserve £million	Capital reserve £million	Revenue reserve £million	Total £million
Balance at 31 March 2011	153.9	36.3	-	-	0.2	1,733.4	60.2	1,984.0
Profit/(loss) for the year	-	-	-	-	-	(66.6)	11.7	(54.9)
Ordinary dividend paid	-	-	-	-	-	-	(6.2)	(6.2)
Movement in own shares reserve	-	-	(5.8)	-	-	-	-	(5.8)
Movement in share based
payment reserve	-	-	-	5.7	-	-	-	5.7
Other comprehensive income
(expense):
Exchange movements arising
on consolidation	-	-	-	-	-	-	-	-
Actuarial loss in defined benefit
pension plan	-	-	-	-	-	-	(2.8)	(2.8)
Balance at 31 March 2012	153.9	36.3	(5.8)	5.7	0.2	1,666.8	62.9	1,920.0

Consolidated Cash Flow Statement

	Six months ended 30 September 2012 £ million	Six months ended 30 September 2011 £ million	Year ended 31 March 2012 £ million
Cash inflow/(outflow) before taxation and interest	155.3	177.3	28.6
Taxation paid	-	2.0	(1.7)
Interest paid	(3.6)	(3.5)	(8.3)
Net cash inflow/(outflow) from operating activities	151.7	175.8	18.6
Investing activities:
Purchase of property, plant and equipment	-	-	(0.1)
Sale of property, plant and equipment	0.1	-	-
Net cash inflow/(outflow) from investing activities	0.1	-	(0.1)
Financing activities:
(Purchase)/disposal of ordinary shares by Employee Benefit Trust1	(0.6)	(4.5)	(5.8)
Movement in short-term loans and overdrafts	(99.1)	6.6	-
Equity dividend paid	(43.0)	(6.2)	(6.2)
Net cash inflow/(outflow) from financing activities	(142.7)	(4.1)	(12.0)
Increase/(decrease) in cash and cash equivalents in the period	9.1	171.7	6.5
Cash and cash equivalents at the start of the period	103.0	99.1	99.1
Effect of foreign exchange rate changes on cash and cash equivalents	(2.4)	(7.4)	(2.6)
Cash and cash equivalents at the period end	109.7	263.4	103.0
Reconciliation:
Cash at bank	78.9	214.0	75.1
Money market funds (included in investments held at fair value)	30.8	49.4	27.9
Cash and cash equivalents at the period end	109.7	263.4	103.0

1 Shares are disclosed in 'Own shares reserve' on the Consolidated Balance Sheet

NOTES TO THE FINANCIAL STATEMENTS

1.   Basis of Accounting

These condensed financial statements are the half-yearly consolidated financial statements of RIT Capital Partners plc and its subsidiaries for the six months ended 30 September 2012. They are prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority, and with International Accounting Standard IAS 34, Interim Financial Reporting, as adopted by the European Union, and were approved on 27 November 2012. These half-yearly financial statements should be read in conjunction with the Annual Report and Accounts for the year ended 31 March 2012, which were prepared in accordance with IFRS, as adopted by the European Union, as they provide an update of previously reported information. The half-yearly consolidated financial statements have been prepared in accordance with the accounting policies set out in the notes to the consolidated financial statements for the year ended 31 March 2012. As disclosed in the Annual Report and Accounts for the year ended 31 March 2012 the Group has changed to a 31 December year-end.

Critical Accounting Assumptions and Judgements

Unquoted investments are valued at management's best estimate of fair value in accordance with IFRS having regard to International Private Equity and Venture Capital Valuation Guidelines as recommended by the British Venture Capital Association. The inputs into the valuation methodologies adopted include observable historical data such as earnings or cash flow as well as more subjective data such as earnings forecasts or discount rates. As a result of this, the determination of fair value requires significant management judgement.

2.   Earnings Per Ordinary Share

The earnings per ordinary share for the six months ended 30 September 2012 is based on the net loss of £50.8 million (six months ended 30 September 2011: net loss of £182.2 million; year ended 31 March 2012: net loss of £54.9 million) and the weighted average number of ordinary shares in issue during the period of 153.9 million (six months ended 30 September 2011: 153.9 million; year ended 31 March 2012: 153.7 million), as shown below:

	Six months ended 30 September 2012 £ million	Six months ended 30 September 2011 £ million	Year ended 31 March 2012 £ million
Weighted average number of shares in issue (million)	153.9	153.9	153.7
Weighted average effect of Share Appreciation Rights (million)	0.1	-	0.3
	154.0	153.9	154.0

The earnings per ordinary share figure can be further analysed between revenue and capital as set out below:

	Six months ended 30 September  2012 £ million	Six months ended 30 September 2011 £ million	Year ended  31 March 2012 £ million
Net revenue profit/(loss)	(15.5)	12.4	11.7
Net capital profit/(loss)	(35.3)	(194.6)	(66.6)
Net profit/(loss)	(50.8)	(182.2)	(54.9)
	Pence per share	Pence per share	Pence per share
Revenue earnings per ordinary share - basic	(10.1)	8.1	7.6
Capital earnings per ordinary share - basic	(22.9)	(126.5)	(43.3)
Earnings per ordinary share - basic	(33.0)	(118.4)	(35.7)
	Pence per share	Pence per share	Pence per share
Revenue earnings per ordinary share - diluted	(10.1)	8.1	7.6
Capital earnings per ordinary share - diluted	(22.9)	(126.5)	(43.3)
Earnings per ordinary share - diluted	(33.0)	(118.4)	(35.7)

3.   Net Asset Value Per Ordinary Share - Basic and Diluted

Net asset value per ordinary share is based on the following data:

	30 September 2012	30 September 2011	31 March 2012
Net assets (£ million)	1,842.1	1,793.9	1,920.0
Number of shares in issue (million)	155.4	153.9	153.9
Own shares (million)	(0.5)	(0.4)	(0.5)
	154.9	153.5	153.4
Effect of dilutive potential ordinary shares
SARs (million)	0.1	0.4	0.3
Diluted shares	155.0	153.9	153.7
	30 September 2012 Pence per share	30 September 2011 Pence per share	31 March 2012 Pence per share
Net asset value per ordinary share - basic	1,189.0	1,168.7	1,251.7
Net asset value per ordinary share - diluted	1,188.1	1,165.9	1,249.3

4.    DIVIDENDS PAID

	Six months ended 30 September 2012	Six months ended 30 September 2011	Year ended 31 March 2012
Dividends paid (£ million)	43.0	6.2	6.2
Dividends paid (Pence per share)	28.0	4.0	4.0

At the Annual General Meeting on 26 July 2012 shareholder approval was received for the payment of a final dividend of 8.0p per ordinary share. Shareholder approval for a change in the Company's Articles was also received enabling the Directors to declare an interim dividend of 20.0p per ordinary share. These amounts were paid on 24 August 2012 and a more detailed commentary may be found in the Chairman's Statement in the Annual Report and Accounts for the year ended 31 March 2012.

5.   ISSUE OF SHARES

On 25 July 2012 the Company issued 1,516,179 ordinary shares as consideration for the purchase of two investments. Of these, 388,179 were part consideration for a minority stake in Corsair Capital (a US private equity firm) and 1,128,000 were consideration for an interest in the joint venture with the Edmond de Rothschild Group.

6.    investments

During the interim period there were no material transfers of investments between fair value hierarchies and no financial assets were reclassified as a result of any change in their purpose or use.

7.    COMPARATIVE INFORMATION

The financial information contained in this Half-Yearly Financial Report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half years ended 30 September 2012 and 30 September 2011 has been reviewed, not audited.

The information for the year ended 31 March 2012 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 31 March 2012 have been filed with the Registrar of Companies and the report of the auditors on those accounts contained no qualification or statement under section 498(2) or (3) of the Companies Act 2006

 

END

 

 

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