Annual Financial Report

RNS Number : 7522P

Schroder Oriental Income Fund Ltd

21 November 2016

 

21 November 2016

ANNUAL REPORT AND ACCOUNTS

Schroder Oriental Income Fund Limited (the "Company") hereby submits its annual financial report for the year ended 31 August 2016 as required by the UK Listing Authority's Disclosure and Transparency Rule 4.1. 

The Company's Annual Report and Accounts for the year ended 31 August 2016 are also being published in hard copy format and an electronic copy will shortly be available to download from the Company's webpage http://www.schroderorientalincomefund.com. Please click on the following link to view the document:

http://www.rns-pdf.londonstockexchange.com/rns/7522P_-2016-11-21.pdf 

The Company has submitted its Annual Report and Accounts to the National Storage Mechanism and it will shortly be available for inspection at www.morningstar.co.uk/uk/nsm.

Enquiries:

Louise Richard

Schroder Investment Management Limited                 Tel: [phone]

Chairman's Statement

Performance and growth

It is always pleasing for a Chairman to be able to report on the Company's best year since its launch. Over the year ended 31 August 2016, the Company's net asset value produced a total return of 32.1% (2015: negative total return of 5.4%), the share price produced a total return of 32.8% (2015: negative total return of 6.1%) and the dividend has increased for the 10th year in a row. A large proportion of the net asset value return came from sterling's weakness after the UK's referendum on EU membership but this should not obscure the fact that Asian companies continue to offer many attractive opportunities for your Company to achieve its investment objective.

Since its launch in 2005, the Company has seen continued growth from strong investment performance and issuance of further share capital. The Company now has a market capitalisation well in excess of £500 million and this size for the most part provides shareholders with the benefit of good daily liquidity. The increased size has also reduced the Company's Ongoing Charges, particularly as the Manager reduced its management fee during the year to 0.7% per annum on net assets of the Company in excess of £250 million. Whilst mentioning fees, it is worth highlighting that the performance fee not only has a high water mark and a hurdle but it also has a cap which limits the total performance fee paid to 1% of the Company's net assets in any one year. This year, the cap notably limited the total payment as shareholders enjoyed exceptionally strong returns.

The Manager's Review on pages 6 to 8 of the 2016 Annual Report provides a more detailed description of performance, market background and investment outlook for the Company.

Dividends

Revenue earnings per share for the year increased by 3.4% to 9.03 pence per share compared with 8.73 pence per share for the previous year, benefiting from a 7.9% rise in investment income as companies in the portfolio continued to grow their dividends to shareholders.

Three interim dividends totalling 4.70 pence per share have been paid in respect of the year ended 31 August 2016 and the Board has now declared a fourth interim dividend of 3.80 pence per share for the year. This takes total dividends per share for the year ended 31 August 2016 to 8.50 pence, an increase of 6.3% on total dividends of 8.00 pence per share paid in respect of the previous financial year. The fourth interim dividend will be paid on 30 November 2016 to shareholders on the register on 18 November 2016.

Gearing policy

During the year under review, the Company renewed its revolving £50 million multi-currency credit facility with Scotiabank Europe Plc for a further year. Gearing stood at 5.5% at the beginning of the year and had decreased to 0.4% at 31 August 2016. The level of gearing continues to be monitored closely by the Board and managed as necessary. The Company's gearing continues to operate within pre-agreed limits so it does not represent more than 25% of the Company's net assets.

Issue of shares and discount control management

Demand for the Company's shares continued to be strong during the year under review and the asset class has remained attractive for investors. During the year, the Board continued to issue shares in order to provide liquidity to investors, reissuing the remaining 3,870,000 shares held in Treasury and issuing a further 600,000 new shares, all at a premium to net asset value.

A further 1,081,450 new ordinary shares have been issued pursuant to a block listing since the end of the year.

Share issuance and buy back authorities

The Board is seeking to renew the existing authorities to issue pre-emptively and to buy back shares in the Company and appropriate resolutions are included in the Notice of the Annual General Meeting. The Board believes that these authorities are valuable tools in the continuing management of the share price volatility relative to net asset value per share. It is pleasing that, once again, the share price was relatively stable around the net asset value during the year and the shares traded at an average premium of 0.1% to net asset value (excluding undistributed current year revenue).

Board refreshment

As I reported in my half year statement, Paul Meader joined the Board as a non-executive Director of the Company on 1 January 2016. A resolution for shareholders to appoint Mr Meader as a Director of the Company will be proposed at the Annual General Meeting, details of which are set out at the end of this Statement. Mr Meader's full biographical details can be found on page 19 of the 2016 Annual Report.

Your Board continues to review its composition, balance and diversity. In line with previous disclosures regarding succession plans, one of the longer-serving Directors, Chris Sherwell, will retire at the Annual General Meeting and will not seek re-election. I would like to take this opportunity on behalf of the Board to thank Chris for his invaluable contribution to our deliberations since the Company's launch in 2005.

The Board intends to continue to refresh its composition progressively over the next few years, seeking to balance a fresh perspective with the benefits of continuity. In that regard, a process, led by the Nomination Committee, will commence shortly to recruit an additional Director and it is the Board's intention for a further long-serving Director to retire at the Annual General Meeting to be held in 2017.

In the meantime, I can confirm that the Board has evaluated all the remaining Directors and is of the view that all continue to be independent, notwithstanding the long service of two Directors.

Outlook

This year continues the Company's history of increasing dividends in every year since its launch. The shares currently yield much the same as the UK stock market, the dividend is well covered by the income reserves and there is the appeal of direct exposure to Asia's growth potential. As the Manager notes in its report, Asia remains a fertile source of companies with well underpinned and growing dividends, combined with the opportunity for capital growth. At a time of such uncertainty in other regions of the globe, these strengths, alongside the inherent diversification benefits for UK investors, support the Board's view that this is a strategy which deserves a place in many sterling portfolios.

Annual General Meeting

The Company's Annual General Meeting will be held in Guernsey on Wednesday, 14 December 2016 at 4.00 p.m.

Robert Sinclair

Chairman

21 November 2016

Manager's Review

The net asset value per share of the Company recorded a total return of 32.1% over the 12 months to end August 2016. Dividends totalling 8.50 pence per share have been paid or declared in respect of the year, representing a 6.3% rise from the year before.

The scale of returns over the year has been materially influenced by the weakness of sterling in response to the uncertainty caused by the result of the UK referendum on EU membership. This somewhat disguised the extent to which regional markets made steady progress in local currency terms over the second half of the fiscal year.

Much of this represented a recovery from the very severe falls seen in the summer of 2015. More tangible support has come from continued accommodative monetary policies worldwide. This has been mirrored in the region, with reductions in policy rates in Korea, India and China. Concerns over the direction of the Chinese Renminbi exchange rate and dwindling foreign currency reserves have been calmed through concerted policy action including a restructuring of local government debt, proactive interest rate cuts and discouragement of capital outflows. Credit has continued to expand, resulting in a stabilisation in growth and a recovery in commodity prices.

New Zealand has been the strongest market, with particular strength in the currency. Indonesia also performed well thanks to a recovery in commodity prices, a stabilisation in the rupiah and increasing confidence in the reform agenda of President Jokowi. South Korea and Thailand benefited from an upturn in corporate earnings revisions.

In contrast, Singapore yielded subpar returns with key financial and offshore and marine stocks out of favour. Although Chinese growth has stabilised, the overall index has been hampered by its heavy weighting towards State Owned Enterprises where national policy dictates have priority over shareholder returns, while the private sector remains under pressure.

Positioning and performance

The Company's performance has broadly matched the rise in the Reference Index, the MSCI All Country Pacific ex Japan Index. Stock selection was generally strong, with notable contributions from our holdings in Hong Kong, Singapore and Taiwan. The only material exception was Thailand where regulatory and competition concerns weighed on the telecom holdings. Country allocation was a modest headwind due to the underweight in South Korea (one of the best performing markets) and the overweight in Singapore.

Australia, Hong Kong, Taiwan, China and Singapore have remained the main country exposures in the Company. In terms of changes, we reduced Singapore, Australia and the Philippines, while adding to Hong Kong and South Korea, although the latter market, along with China, remained the principal areas of under exposure compared to the Reference Index.

Real estate, banks, information technology and telecommunications account for almost two thirds of the Company's investments. In terms of changes over the year, we added to materials on valuations grounds, while reducing real estate, particularly REITs.

Investment outlook

The prospects for global growth remain somewhat muted. Policy settings are likely to remain supportive, though whether the concentration on monetary tools gives way to greater fiscal activism remains to be seen. Headwinds to growth include still elevated levels of indebtedness, limited pricing power and generally low levels of private capital investment. A number of major industries such as energy, financials and auto manufacturing are facing potentially destabilising levels of disruption, further contributing to caution. This is as true within the region as elsewhere.

Meanwhile, events in China will remain very influential for investor sentiment. Structural issues remain, with the private sector cutting investment and conserving cash, while the government influenced parts of the economy are being encouraged to invest, primarily in infrastructure and other "priority" projects. The sources of this funding have become increasingly opaque, the latest mechanism being the encouragement of public private partnerships (PPPs) with return on investment considerations likely to be subordinate to other aims such as sustaining growth and employment. Despite poor affordability, particularly in the largest cities, we also see little appetite to seriously disrupt the real estate market.

The continued expansion of credit in excess of nominal growth is clearly not sustainable, but given the priority for social cohesion and the leadership transition in prospect in 2017, stability is the priority rather than inherently risky restructuring and capital discipline, however desirable they may be. While we continue to see the situation in China as the main source of domestic risk facing the region, we expect relative stability over the next year given a modest recovery in growth, a steady decline in the currency, and further credit growth enabled by low nominal interest rates, high household savings and government direction.

Regional equity valuations have partially recovered the steep falls seen in the second half of 2015. They are not expensive by historic standards, but earnings expansion is likely to remain modest given the global backdrop and subdued demand drivers across the region. The latter continues to be a function of relatively high aggregate debt levels compared to history, although in general they are well below those pertaining in developed markets, including the United Kingdom.

However, the aggregate position disguises the variations at a sector, market and stock level. Looking at our own portfolio, we see many companies that have (rightly in our view) been cautious and disciplined about investment spending, preferring to conserve cash and retire debt. Consequently, many companies are lowly geared, and generating excess cash. While the process will inevitably be gradual, this does leave us optimistic on dividends and the prospect of higher distributions to shareholders, absent some sort of severe economic dislocation.

Schroder Unit Trusts Limited

21 November 2016

Principal risks and uncertainties

The Board is responsible for the Company's system of risk management and internal control and for reviewing its effectiveness. The Board has adopted a detailed matrix of principal risks affecting the Company's business as an investment company and has established associated policies and processes designed to manage and, where possible, mitigate those risks, which are monitored by the Audit Committee on an ongoing basis. This system assists the Board in determining the nature and extent of the risks it is willing to take in achieving its strategic objectives. Both the principal risks and the monitoring system are also subject to robust review at least annually. The last review took place in November 2016.

Although the Board believes that it has a robust framework of internal control in place, this can provide only reasonable, and not absolute, assurance against material financial misstatement or loss and is designed to manage, not eliminate, risk.

A summary of the principal risks and uncertainties faced by the Company which have remained unchanged throughout the year, and actions taken by the Board and, where appropriate, its Committees, to manage and mitigate these risks and uncertainties, is set out below.

Risk	Mitigation and management
Strategic and competitiveness risk
The Company's investment objectives may become out of line with the requirements of investors, resulting in a wide discount of the share price to underlying net asset value.	Appropriateness of the Company's investment remit periodically reviewed and success of the Company in meeting its stated objectives is monitored. Share price relative to net asset value monitored and use of buy back authorities considered on a regular basis. Marketing and distribution activity is actively reviewed.
The Company's cost base could become uncompetitive, particularly in light of open ended alternatives.	Ongoing competitiveness of all service provider fees subject to periodic benchmarking against competitors. Annual consideration of management fee levels.
Investment management risk
The Manager's investment strategy and levels of resourcing, if inappropriate, may result in the Company underperforming the market and/or peer group companies, leading to the Company and its objectives becoming unattractive to investors.	Review of the Manager's compliance with the agreed investment restrictions, investment performance and risk against investment objectives and strategy; relative performance; the portfolio's risk profile; and appropriate strategies employed to mitigate any negative impact of substantial changes in markets. Annual review of the ongoing suitability of the Manager, including resources and key personnel risk.
Financial and currency risk
The Company is exposed to the effect of market and currency fluctuations due to the nature of its business. A significant fall in regional equity markets could have an adverse impact on the market value of the Company's underlying investments and, as the Company invests predominantly in underlying assets which are denominated in a range of currencies, its exposure to changes in the exchange rate between sterling and other currencies has the potential to have a significant impact on returns.	Risk profile of the portfolio considered and appropriate strategies to mitigate any negative impact of substantial changes in markets or currency discussed with the Manager. Having regard to the exposure to non-sterling assets, the Board considers the overall hedging policy on a regular basis.
Custody risk
Safe custody of the Company's assets may be compromised through control failures by the Depositary, including cyber hacking.	Depositary reports on safe custody of the Company's assets, including cash and portfolio holdings, are independently reconciled with the Manager's records. Review of audited internal controls reports covering custodial arrangements. Annual report from the Depositary on its activities, including matters arising from custody operations.
Gearing and leverage risk
The Company utilises credit facilities. These arrangements increase the funds available for investment through borrowing. While this has the potential to enhance investment returns in rising markets, in falling markets the impact could be detrimental to performance.	Gearing is monitored and strict restrictions on borrowings imposed: gearing continues to operate within pre-agreed limits so as not to exceed 25% of the Company's net assets.
Accounting, legal and regulatory risk
Breaches of the UK Listing Rules, the Companies (Guernsey) Law, 2008 (as amended) or other regulations with which the Company is required to comply, could lead to a number of detrimental outcomes.	Confirmation of compliance with relevant laws and regulations by key service providers. Shareholder documents and announcements, including the Company's published Annual Report, are subject to stringent review processes. Procedures have been established to safeguard against disclosure of inside information.
Other service provider risk
The Company has no employees and has delegated certain functions to a number of service providers. Failure of controls and poor performance of any service provider could lead to disruption, reputational damage or loss.	Service providers appointed subject to due diligence processes and with clearly-documented contractual arrangements detailing service expectations. Regular reporting by key service providers and monitoring of the quality of services provided. Review of annual audited internal controls reports from key service providers, including confirmation of business continuity arrangements.

Risk assessment and internal controls

Risk assessment includes consideration of the scope and quality of the systems of internal control operating within key service providers, and ensures regular communication of the results of monitoring by such providers to the Audit Committee, including the incidence of significant control failings or weaknesses that have been identified at any time and the extent to which they have resulted in unforeseen outcomes or contingencies that may have a material impact on the Company's performance or condition. No significant control failings or weaknesses were identified from the Audit Committee's ongoing risk assessment which has been in place throughout the financial year and up to the date of this Report.

A full analysis of the financial risks facing the Company is set out in note 20 on pages 49 to 54 of the 2016 Annual Report.

Viability statement

The Directors have assessed the prospects of the Company over the period to 31 August 2019 which it considers to be an appropriate timeframe over which to judge the viability of an investment company, taking into account the factors outlined below.

In their assessment, the Directors have considered each of the Company's principal risks and uncertainties detailed on pages 16 and 17 of the 2016 Annual Report and in particular the impact of a significant fall in regional equity markets on the value of the Company's investment portfolio. The Directors have also considered the Company's income and expenditure projections and the fact that its investments comprise readily realisable securities that can be expected to be sold to meet funding requirements if necessary.

Based on the Company's processes for monitoring operating costs, share price discount, the Manager's compliance with the investment objective, asset allocation, the portfolio risk profile, gearing, counterparty exposure, liquidity risk and financial controls, the Directors have concluded that there is a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period to 31 August 2019.

Going concern

Having assessed the principal risks and the other matters discussed in connection with the viability statement set out above, and the "Guidance on Risk Management, Internal Control and Related Financial and Business Reporting" published by the Financial Reporting Council ("FRC") in 2014, the Directors consider it appropriate to adopt the going concern basis in preparing the accounts.

By Order of the Board

Schroder Investment Management Limited

Company Secretary

23 November 2016

Statement of Directors' Responsibilities

The Directors are responsible for preparing the financial statements in accordance with applicable Guernsey law and generally accepted accounting principles.

Guernsey Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors should:

•        select suitable accounting policies in accordance with IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently;

•        present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

•        provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance;

•        state that the Company has complied with IFRS, subject to any material departures disclosed and explained in the financial statements;

•        prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and

•        make judgements and estimates that are reasonable and prudent.

The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies (Guernsey) Law, 2008 (as amended). They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Directors, whose names and functions are listed on pages 19 and 20 of the 2016 Annual Report, confirms that, to the best of their knowledge:

•        the financial statements, which have been prepared in accordance with International Financial Reporting Standards as adopted in the EU and with the Companies (Guernsey) Law, 2008, give a true and fair view of the assets, liabilities, financial position and the net return of the Company;

•        the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces; and

•        the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy.

By order of the Board

Robert Sinclair

Chairman

21 November 2016

Statement of Comprehensive Income

for the year ended 31 August 2016

			2016			2015
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments at fair value through profit or loss		-	123,772	123,772	-	(46,719)	(46,719)
Net foreign currency (losses)/gains		-	(8,116)	(8,116)	-	5,968	5,968
Income from investments		24,811	244	25,055	23,002	-	23,002
Other income		10	-	10	9	-	9
Total income/(loss)		24,821	115,900	140,721	23,011	(40,751)	(17,740)
Management fee		(997)	(2,326)	(3,323)	(971)	(2,265)	(3,236)
Performance fee		-	(5,287)	(5,287)	-	-	-
Other administrative expenses		(685)	(5)	(690)	(620)	(5)	(625)
Profit/(loss) before finance costs and taxation		23,139	108,282	131,421	21,420	(43,021)	(21,601)
Finance costs		(271)	(632)	(903)	(311)	(726)	(1,037)
Profit/(loss) before taxation		22,868	107,650	130,518	21,109	(43,747)	(22,638)
Taxation		(1,572)	-	(1,572)	(1,449)	-	(1,449)
Net profit/(loss) and total
comprehensive income		21,296	107,650	128,946	19,660	(43,747)	(24,087)
Earnings/(loss) per share		9.03p	45.66p	54.69p	8.73p	(19.43)p	(10.70)p

The Company does not have any income or expense that is not included in net profit/(loss) for the year. Accordingly the "Net profit/(loss)" for the year is also the "Total comprehensive income" for the year.

The "Total" column of this statement represents the Company's Statement of Comprehensive Income, prepared in accordance with IFRS. The "Revenue and Capital" columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year.

The notes on pages 41 to 54 of the 2016 Annual Report form an integral part of these accounts.

Statement of Changes in Equity

for the year ended 31 August 2016

		Treasury	Capital
	Share	share	redemption	Special	Capital	Revenue
	capital	reserve	reserve	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31 August 2014	148,880	(29,447)	39	150,374	138,851	19,759	428,456
Reissue of ordinary shares from Treasury	-	23,161	-	-	-	-	23,161
Net (loss)/profit	-	-	-	-	(43,747)	19,660	(24,087)
Dividends paid in the year	-	-	-	-	-	(17,440)	(17,440)
At 31 August 2015	148,880	(6,286)	39	150,374	95,104	21,979	410,090
Issue of ordinary shares	1,371	-	-	-	-	-	1,371
Reissue of ordinary shares from Treasury	-	6,286	-	-	1,083	-	7,369
Net profit	-	-	-	-	107,650	21,296	128,946
Dividends paid in the year	-	-	-	-	-	(19,114)	(19,114)
At 31 August 2016	150,251	-	39	150,374	203,837	24,161	528,662

The notes on pages 41 to 54 of the 2016 Annual Report form an integral part of these accounts.

Notes to the Accounts

1.       Accounting policies

Basis of accounting

The accounts have been prepared in accordance with the Companies Guernsey Law 2008 and International Financial Reporting Standards ("IFRS"), which comprise standards and interpretations approved by the International Accounting Standards Board ("IASB"), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee ("IASC"), that remain in effect and to the extent that they have been adopted by the European Union.

Where consistent with the requirements of IFRS, the Directors have sought to prepare the accounts on a basis compliant with presentational guidance set out in the statement of recommended practice for investment trust companies (the "SORP") issued by the Association of Investment Companies in November 2014.

The policies applied in these accounts are consistent with those applied in the preceding year.

2.         Taxation

	2016	2015
	£'000	£'000
Irrecoverable overseas tax deducted from dividends receivable	1,572	1,449

The Company has been granted an exemption from Guernsey taxation, under the Income Tax (Exempt Bodies) Guernsey Ordinance 1989, for which it is charged an annual exemption fee of £1,200 (2015: £1,200).

3.       Dividends

	2016	2015
Dividends paid and declared	£'000	£'000
2015 fourth interim dividend of 3.40p (2014: 3.15p)	8,017	7,018
First interim dividend of 1.50p (2015: 1.50p)	3,541	3,344
Second interim dividend of 1.60p (2015: 1.50p)	3,777	3,353
Third interim dividend of 1.60p (2015: 1.60p)	3,779	3,725
Total dividends paid in the year	19,114	17,440
	2016	2015
	£'000	£'000
Fourth interim dividend declared of 3.80p (2015: 3.40p)	9,027	7,924

Under the Companies (Guernsey) Law 2008, the Company may pay dividends out of both capital and revenue reserves, subject to passing a solvency test. However all dividends paid and declared to date have been paid, or will be paid, out of revenue profits. The Company has passed the solvency test for all dividends paid to date.

The fourth interim dividend declared in respect of the year ended 31 August 2015 differs from the amount actually paid due to shares issued after the balance sheet date but prior to the share register record date.

4.       Earnings/(losses) per share

	2016	2015
Net revenue profit (£'000)	21,296	19,660
Net capital profit/(loss) (£'000)	107,650	(43,747)
Net total profit/(loss) (£'000)	128,946	(24,087)
Weighted average number of ordinary shares in issue during the year	235,764,033	225,115,369
Revenue earnings per share	9.03p	8.73p
Capital earnings/(losses) per share	45.66p	(19.43)p
Total earnings/(losses) per share	54.69p	(10.70)p

5.       Share capital

	2016	2015
	£'000	£'000
Ordinary shares of 1p each, allotted, called-up and fully paid:
Opening balance of 233,071,574 (2015: 221,491,574) shares	142,594	119,433
Issue of 600,000 (2015: nil) shares	1,371	-
Reissue of 3,870,000 (2015: 11,580,000) shares from Treasury	6,286	23,161
Closing balance of 237,541,574 (2015: 233,071,574) shares	150,251	142,594
Nil (2015: 3,870,000) shares held in Treasury	-	6,286
Closing balance¹	150,251	148,880

¹Represented by 237,541,574 (2015: 236,941,574) shares, including nil (2015: 3,870,000) shares held in Treasury.

During the year a total of 3,870,000 ordinary shares, nominal value £38,700, were reissued to the market from Treasury at an average price of 190.4p per share, for a total consideration received of £7,369,000. In addition, a further 600,000 ordinary shares, nominal value £6,000, were issued to the market under a block listing at an average price of 228.5p per share, for a total consideration received of £1,371,000. All share issues were to satisfy demand.

6.         Net asset value per share

	2016	2015
Net assets attributable to shareholders (£'000)	528,662	410,090
Shares in issue at the year end	237,541,574	233,071,574
Net asset value per share	222.56p	175.95p

7.         Status of announcement

2015 Financial Information

The figures and financial information for 2015 are extracted from the published Annual Report and Accounts for the year ended 31 August 2015 and do not constitute the statutory accounts for that year. The 2015 included the Report of the Independent Auditor, which was unqualified.

2016 Financial Information

The figures and financial information for 2016 are extracted from the Annual Report and Accounts for the year ended 31 August 2016 and do not constitute the statutory accounts for the year. The 2016 Annual Report and Accounts include the Report of the Independent Auditor, which is unqualified.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's webpage (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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