Half Yearly Report

RNS Number : 0802X

Shires Income PLC

17 November 2014

 



SHIRES INCOME PLC

HALF YEARLY FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014

The objective of Shires Income is to provide shareholders with a high level of income, together with growth of both income and capital from a portfolio substantially invested in UK equities.

	30 September 2014	31 March 2014	% change
Equity shareholders' funds (£'000)	73,947	74,502	-0.7
Net asset value per share	246.51p	248.36p	-0.7
Share price (mid-market)	242.00p	252.25p	-4.1
(Discount)/premium to NAV	(1.83)%	1.57%
Dividend yield	4.96%	4.76%

Performance (total return)
	6 months ended	1 year ended	3 years ended	5 years ended
	30 September	30 September	30 September	30 September
	2014	2014	2014	2014
Net asset value	+1.6%	+9.5%	+67.7%	+91.4%
Share price	-1.8%	+9.6%	+63.0%	+101.1%
FTSE All-Share Index	+1.2%	+6.1%	+47.9%	+59.1%
All figures are for total return and assume re-investment of net dividends excluding transaction costs.

For further information, please contact:-

Ed Beal, Kenny Harper                                                                         0131 528 4000

Aberdeen Asset Managers Limited

William Hemmings                                                                                020 7463 6000

Aberdeen Asset Managers Limited

INTERIM BOARD REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014

Background

The financial year started well with markets rising and the recovery in the UK accelerating.  Indeed by May the FTSE All-Share index had posted a new all-time high when measured on a total return basis.  By midway through the half year, the economy in the UK had regained its previous peak level of output, achieved in the first quarter of 2008.  Unemployment was at its lowest level for five years, though the lack of wage inflation remained puzzling. Investors looked at inflation readings and began to anticipate an increase in interest rates.  Mark Carney, the Governor of the Bank of England did his best to dampen such expectations.

The data for the first quarter growth in the US was surprisingly negative.  However, the authorities were able to see beyond what was largely a weather related slowdown and continued to signal their belief in the recovery by continuing with their programme of tapering.  That belief proved well founded as the second quarter's GDP reading was a very strong 4%.  Management teams were becoming increasingly confident and this was evidenced by Pfizer's bid for AstraZeneca and GlaxoSmithKline's sizable transaction involving the buyout of Novartis' vaccines business.   Consumer confidence was also rising buoyed by a strong housing market.  Indeed, although regional, house price inflation was sufficiently strong to cause the Bank of England to introduce affordability and lending restrictions in an effort to prevent a bubble from forming. 

Geopolitical news flow deteriorated during the half year with a worsening of the situation in Ukraine, Gaza and Israel again in conflict, and Islamic State terrorising Iraq.  Investors chose to focus on the improving economic data and markets were largely unmoved by these events.

As we progressed through the half year we concluded the first half year company reporting period.  The most notable features were slowing demand in many emerging markets and the negative impact of the strengthening US dollar.  This latter factor was impacting both end market demand and the translation of sales and profits that were made in dollars.  This was weighing on earnings expectations and for the third consecutive year analysts' forecasts were being downgraded across much of the market.

In a continuation of the trend witnessed over recent years, Europe still struggled.  Indeed the ECB was so concerned about the threat of deflation that they reduced interest rates to their lowest ever level and made deposit rates negative.  They also indicated that they were prepared to countenance some form of quantitative easing in order to stimulate lending growth, especially to small and medium sized enterprises.  By August, the Committee had reduced interest rates further and indicated that they did not believe there to be scope for additional reductions.  They also launched an Asset Backed Securities stimulation programme.  However, the initial take up of the third long term re-financing operation by the banks was less than anticipated, suggesting that an imminent pick up in lending was unlikely.  Germany was now registering negative growth whilst France was also failing to grow.  Rising nervousness was pushing investors into perceived safer assets and fixed interest yields continued to decline.  The German 10 year bund yield fell below 1% for the first time in history.

Ultimately, despite a positive start and some volatility during August that saw initial losses recouped, equity markets finished the half year broadly flat compared to their levels at the start of the period.

Investment Performance

In the half year ended 30 September 2014, the Company's net assets per share decreased by 0.7% from 248.36p to 246.51p.  The total return on net assets, which includes dividends, increased by 1.6%, which during the period was 0.4% ahead of our benchmark, the FTSE All-Share Index, which reported a total return of 1.2%.  The total return of the Company's share price was -1.8%, with the share price declining from a premium of 1.6% to a discount of 1.8%.

Portfolio Profile

Three new holdings were added to the portfolio.  Ultra Electronics is an aerospace and defence business.  They have particular strength in the areas of cyber security and battle space IT.  Both of these markets are expected to exhibit long term structural growth despite pressures in more conventional defence expenditure.  Inchcape distributes premium vehicles for automotive manufacturers into a range of international markets.  The exclusivity and long term nature of the agreements provide significant barriers to entry.  Their presence in a number of emerging markets should allow them to benefit from the structural growth that is occurring in these territories. Croda is a speciality chemicals company with niche products that are sold into the consumer, personal and crop care markets.  The high value nature of these products allows the company to deliver margins materially ahead of those normally seen in the industry.  In each case an initial position was purchased alongside the sale of put options.  All three companies yield less than the average for the equity portfolio but all have good track records of above inflation growth in their dividends.

Your Manager exited one holding during the period.  The food retail sector in the UK has suffered from the well documented problems of intense competition at a time of weak consumer demand.  Morrisons has struggled in this environment and your Manager took the decision to sell the holding and re-invest the proceeds in companies that are believed to have better long term prospects.

The Company participated in a placing that was conducted by Cobham to aid their acquisition of Aeroflex, broadening their commercial testing capabilities.

Gearing is broadly unchanged having increased slightly from 18.9% to 19.7% and there have been no significant changes to the overall allocations in the portfolio.  Equities represent approximately 69% of gross assets with the remainder comprised of preference shares, convertibles and cash.  This is a decrease from last year's value of 72%.  The most significant factor has been the good performance of the preference shares which has seen them increase as a proportion of the total.  In addition the Company holds slightly more cash at the current half year end compared to the prior first half period.  No new investments were made in preference shares or convertibles during the period.

Investment Income

There has been some good dividend growth during the period.  Nine companies in the portfolio increased their distributions by 10% or more.  These were spread across a broad array of sectors ranging from Aerospace and Defence, through Oil and Gas, Catering, Financial Services and Technology. There were particularly notable increases from the likes of Schroders who followed strong growth last year with a 50% uplift in their interim payout.  Wood Group raised their dividend by 29%.  Prudential had a good set of results and surprised investors with a 15% increase.  Even a higher yielding company like Provident Financial posted an 11% increase in their final distribution.  There were some disappointments, such as the cut in Tesco's dividend, the effect of which will be felt in the second half of the year.  However, overall corporate dividend growth has been encouraging.

In my statement accompanying the final results I noted that dollar weakness would weigh on the dividends received by UK holders of companies that declare their dividends in dollars.  A good example is BP who declared an uplift of over 8% in dollars for dividends in their first half.  This manifested itself in a near 3% reduction in the amount actually received by the Company.  Dollar dividends represent approximately 29% of the equity portfolio's earnings and 18% of total earnings.  That is well below the 40% or so of all dividends in the UK that are declared in dollars.

Outlook

Uncertainty and volatility have returned to the fore.  Recent data from Germany has been poor and given its role as the engine of European growth, weakness here makes it less likely that the region can return to growth without structural reform and a pick-up in bank lending.  China, although still delivering growth well ahead of that emanating from developed markets, is slowing.  Its economy is also transitioning and this effect can been seen in the decline in many commodity prices.  The Federal Reserve is expected to raise interest rates during 2015.  A similar situation exists in the UK, though the MPC is coy about giving clear guidance.  Whether investors will concentrate upon the positives; namely that this suggests a more established economic recovery rather than the negative of extraordinarily cheap money being removed, remains to be seen.  Investors are currently very focussed on the threat of deflation in Europe and the belief that the ECB can avert this via some form of quantitative easing programme.  It is unclear what form such stimulus would take.  If this is not delivered as expected it is likely to be taken negatively by markets.

Much has been written about the impact that dollar strength is having on corporate profits.  It is worth remembering that unless it strengthens further, the effect of this move is now beginning to annualise.  Additionally it is one of the factors weighing on the oil price.  I would not care to attempt to forecast the future direction of the oil price but it is currently providing a very significant amount, by some estimates in excess of $2.5bn daily, of stimulus for the global economy.  Importantly this is directly benefitting both companies and consumers.

Your Manager will continue to invest in the kind of high quality companies that the Company currently owns.  These are businesses that should be able to deliver growth in earnings and hence dividends through the economic cycle.  They are supported by strong balance sheets that give them flexibility in difficult times and options when conditions are more favourable.

Anthony B. Davidson

Chairman

14 November 2014

Principal Risks and Uncertainties

The main risks the Company faces from its financial instruments are (i) market price risk (comprising interest rate risk, currency risk and other price risk), (ii) liquidity risk, and (iii) credit risk. The Company's gearing comprises short-term borrowings from banking institutions and bears interest at floating rates.  The profile of financing costs is managed as part of overall investment strategy. The current loan expires in May 2015. The employment of gearing magnifies the impact on net assets of both negative and positive changes in the value of the Company's portfolio of investments. The Company has minimal exposure to foreign currency risk as it holds only a small amount of foreign currency assets and has no exposure to any foreign currency liabilities. Information on each of these areas is given in the Strategic Report within the Annual Report and Accounts for the year ended 31 March 2014.

Going Concern

The Company's assets comprise mainly readily realisable securities which can be sold to meet funding commitments if necessary. The Board considers that the Company has adequate financial resources to continue in operational existence for the foreseeable future.

Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (the "Directive"), proposed by the EU to enhance shareholder protection, was fully implemented in the UK on 22 July 2014.  This Directive required the Company to appoint an authorised Alternative Investment Fund Manager and a depositary, the latter overlaying the current custody arrangements.

The Company has now appointed Aberdeen Fund Managers Limited ("AFML"), following its authorisation by the FCA, to act as the Company's Alternative Investment Fund Manager, entering a new management agreement with AFML on 17 July 2014. Under this agreement the AFML delegates portfolio management services to Aberdeen Asset Managers Limited, which continues to act as the Company's Investment Manager. There is no change in the commercial arrangements from the previous investment management agreement.

In addition, the Company entered into a depositary agreement with AFML and BNP Paribas Securities on 17 July 2014. The appointment of a depositary is a new requirement under the Directive and, as previously reported, this will increase costs over and above the previous custody arrangements.

Directors' Responsibility Statement

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 condensed set of interim financial statements within the Half-Yearly Financial Report have been prepared in accordance with IAS 34;

-        the Chairman's Statement (constituting the interim management report) includes a fair review of the information required by rules 4.2.7R of the Disclosure and Transparency Rules (being 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 and a description of the principal risks and uncertainties for the remaining six months of the financial year) and 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last annual report that could so do).

The Half-Yearly Financial Report for the six months ended 30 September 2014 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements.

For and on behalf of the Board of Shires Income PLC

Anthony B. Davidson

Chairman

14 November 2014

DISTRIBUTION OF ASSETS AND LIABILITIES

			Movement during the period
	Valuation at				Gains/	Valuation at
	31 March 2014		Purchases	Sales	(losses)	30 September 2014
	£'000	%	£'000	£'000	£'000	£'000		%
Listed investments
Ordinary shares	64,361	86.4	1,667	(913)	(1,561)	63,554		85.9
Convertibles	1,354	1.8	-	-	(40)	1,314		1.8
Preference shares	22,120	29.7	-	-	934	23,054		31.2
	_______	_______	_______	_______	_______	_______		_______
	87,835	117.9	1,667	(913)	(667)	87,922		118.9
Current assets	5,380	7.2				4,765		6.4
Current liabilities	(18,713)	(25.1)				(18,740)		(25.3)
	_______	_______	_______	_______	_______	_______		_______
Net assets	74,502	100.0				73,947		100.0
	_______	_______	_______	_______	_______	_______		_______
Net asset value per Ordinary share	248.4p					246.5p
	_______					_______

STATEMENT OF COMPREHENSIVE INCOME

		Six months ended
		30 September 2014
		(unaudited)
		Revenue	Capital	Total
	Note	£'000	£'000	£'000
(Losses)/gains on investments at fair value		-	(635)	(635)
Investment income
Dividend income		2,003	-	2,003
Interest income from investments		286	(47)	239
Stock dividend		56	-	56
Traded option premiums		137	-	137
Money market interest		5	-	5
Exchange gains		-	-	-
		_______	_______	_______
		2,487	(682)	1,805
		_______	_______	_______
Expenses
Investment management fees		(99)	(99)	(198)
Other administrative expenses		(192)	-	(192)
Finance costs of borrowings		(82)	(82)	(164)
		_______	_______	_______
		(373)	(181)	(554)
		_______	_______	_______
Profit/(loss) before tax		2,114	(863)	1,251
Taxation	2	(21)	16	(5)
		_______	_______	_______
Profit/(loss) attributable to equity holders	3	2,093	(847)	1,246
		_______	_______	_______
Earnings per Ordinary share (pence)	4	6.97	(2.82)	4.15
		_______	_______	_______
The Company does not have any income or expense that is not included in profit/(loss) for the period, and therefore the profit/(loss) for the period is also the "Total comprehensive income for the period", as defined in IAS 1 (revised).
The total column of this statement represents the Statement of Comprehensive Income of the Company, prepared in accordance with IFRS. The revenue and capital columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.
All items in the above statement derive from continuing operations.

STATEMENT OF COMPREHENSIVE INCOME (Cont'd)

		Six months ended
		30 September 2013
		(unaudited)
		Revenue	Capital	Total
	Note	£'000	£'000	£'000
(Losses)/gains on investments at fair value		-	553	553
Investment income
Dividend income		1,876	-	1,876
Interest income from investments		286	(47)	239
Stock dividend		98	-	98
Traded option premiums		141	-	141
Money market interest		5	-	5
Exchange gains		-	-	-
		_______	_______	_______
		2,406	506	2,912
		_______	_______	_______
Expenses
Investment management fees		(90)	(90)	(180)
Other administrative expenses		(186)	-	(186)
Finance costs of borrowings		(84)	(84)	(168)
		_______	_______	_______
		(360)	(174)	(534)
		_______	_______	_______
Profit before tax		2,046	332	2,378
Taxation	2	(22)	22	-
		_______	_______	_______
Profit attributable to equity holders	3	2,024	354	2,378
		_______	_______	_______
Earnings per Ordinary share (pence)	4	6.75	1.18	7.93
		_______	_______	_______

STATEMENT OF COMPREHENSIVE INCOME (Cont'd)

		Year ended
		31 March 2014
		(audited)
		Revenue	Capital	Total
	Note	£'000	£'000	£'000
(Losses)/gains on investments at fair value		-	4,387	4,387
Investment income
Dividend income		3,399	-	3,399
Interest income from investments		579	(93)	486
Stock dividend		260	-	260
Traded option premiums		286	-	286
Money market interest		10	-	10
Exchange gains		-	2	2
		_______	_______	_______
		4,534	4,296	8,830
		_______	_______	_______
Expenses
Investment management fees		(186)	(186)	(372)
Other administrative expenses		(347)	-	(347)
Finance costs of borrowings		(160)	(160)	(320)
		_______	_______	_______
		(693)	(346)	(1,039)
		_______	_______	_______
Profit before tax		3,841	3,950	7,791
Taxation	2	(52)	52	-
		_______	_______	_______
Profit attributable to equity holders	3	3,789	4,002	7,791
		_______	_______	_______
Earnings per Ordinary share (pence)	4	12.63	13.34	25.97
		_______	_______	_______

BALANCE SHEET

		As at	As at	As at
		30 September	30 September	31 March
		2014	2013	2014
		(unaudited)	(unaudited)	(audited)
	Note	£'000	£'000	£'000
Non-current assets
Ordinary shares		63,554	64,015	64,361
Convertibles		1,314	1,322	1,354
Other fixed interest		23,054	20,556	22,120
		_______	_______	_______
Securities at fair value		87,922	85,893	87,835
		_______	_______	_______
Current assets
Trade and other receivables		24	23	19
Accrued income and prepayments		803	797	956
Cash and cash equivalents		3,938	2,417	4,405
		_______	_______	_______
		4,765	3,237	5,380
Total assets		92,687	89,130	93,215
Current liabilities
Trade and other payables		(240)	(247)	(213)
Short-term borrowings		(18,500)	(18,000)	(18,500)
		_______	_______	_______
		(18,740)	(18,247)	(18,713)
		_______	_______	_______
Net assets		73,947	70,883	74,502
		_______	_______	_______
Share capital and reserves attributable to equity holders
Called-up share capital		15,049	15,049	15,049
Share premium account		19,308	19,308	19,308
Capital reserve	5	33,267	30,466	34,114
Revenue reserve		6,323	6,060	6,031
		_______	_______	_______
Equity shareholders' funds		73,947	70,883	74,502
		_______	_______	_______
Net asset value per Ordinary share (pence)		246.51	236.30	248.36
		_______	_______	_______

STATEMENT OF CHANGES IN EQUITY

Six months ended 30 September 2014 (unaudited)
			Share		Retained
		Share	premium	Capital	revenue
		capital	account	reserve	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000
As at 31 March 2014		15,049	19,308	34,114	6,031	74,502
Revenue profit for the period		-	-	-	2,093	2,093
Capital loss for the period		-	-	(847)	-	(847)
Equity dividends	3	-	-	-	(1,801)	(1,801)
		_______	_______	_______	_______	_______
As at 30 September 2014		15,049	19,308	33,267	6,323	73,947
		_______	_______	_______	_______	_______
Six months ended 30 September 2013 (unaudited)
			Share		Retained
		Share	premium	Capital	revenue
		capital	account	reserve	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000
As at 31 March 2013		15,049	19,308	30,112	5,837	70,306
Revenue profit for the period		-	-	-	2,024	2,024
Capital profit for the period		-	-	354	-	354
Equity dividends	3	-	-	-	(1,801)	(1,801)
		_______	_______	_______	_______	_______
As at 30 September 2013		15,049	19,308	30,466	6,060	70,883
		_______	_______	_______	_______	_______
Year ended 31 March 2014 (audited)
			Share		Retained
		Share	premium	Capital	revenue
		capital	account	reserve	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000
As at 31 March 2013		15,049	19,308	30,112	5,837	70,306
Revenue profit for the year		-	-	-	3,789	3,789
Capital profit for the year		-	-	4,002	-	4,002
Equity dividends	3	-	-	-	(3,595)	(3,595)
		_______	_______	_______	_______	_______
As at 31 March 2014		15,049	19,308	34,114	6,031	74,502
		_______	_______	_______	_______	_______

CASHFLOW STATEMENT

	Six months ended	Six months ended	Year ended
	30 September 2014	30 September 2013	31 March 2014
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Cash flows from operating activities
Investment income received	2,443	2,328	3,956
Money market interest received	6	5	10
Investment management fee paid	(196)	(180)	(365)
Other cash expenses	(199)	(201)	(358)
	__________	__________	__________
Cash generated from operations	2,054	1,952	3,243
Interest paid	(156)	(169)	(320)
	__________	__________	__________
Taxation	(2)	-	-
	__________	__________	__________
Net cash inflows from operating activities	1,896	1,783	2,923
	__________	__________	__________
Cash flows from investing activities
Purchases of investments	(1,610)	(2,241)	(6,240)
Sales of investments	1,048	2,702	8,841
	__________	__________	__________
Net cash (outflow)/inflow from investing activities	(562)	461	2,601
	__________	__________	__________
Cash flows from financing activities
Equity dividends paid	(1,801)	(1,801)	(3,595)
	__________	__________	__________
Net cash outflow from financing activities	(1,801)	(1,801)	(3,595)
	__________	__________	__________
Net cash inflow/(outflow) from financing	-	-	-
Net (decrease)/increase in cash and cash equivalents	(467)	443	1,929
Cash and cash equivalents at start of period	(14,095)	(16,026)	(16,026)
Exchange movements	-	-	2
	__________	__________	__________
Cash and cash equivalents at end of period	(14,562)	(15,583)	(14,095)
	__________	__________	__________
Cash and cash equivalents comprise:
Cash and cash equivalents	3,938	2,417	4,405
Short-term borrowings	(18,500)	(18,000)	(18,500)
	__________	__________	__________
	(14,562)	(15,583)	(14,095)
	__________	__________	__________

Notes to the Financial Statements

For the six months ended 30 September 2014

1.	Accounting policies
	(a)	Basis of accounting
		The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) 34 - 'Interim Financial Reporting', as adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB (IFRIC). They have also been prepared using the same accounting policies applied for the year ended 31 March 2014 financial statements, which received an unqualified audit report.
	(b)	Dividends payable
		Dividends are recognised in the period in which they are paid.

2.	Taxation
	The taxation expense reflected in the Statement of Comprehensive Income is calculated at a rate of 21%, which is based on management's best estimate of the weighted average annual corporation tax rate expected for the full financial year.

3.	Dividends
	The following table shows the revenue for each period less the dividends declared in respect of the financial period to which they relate.
		Six months ended	Six months ended	Year ended
		30 September 2014	30 September 2013	31 March 2014
		£'000	£'000	£'000
	Revenue	2,093	2,024	3,789
	Dividends declared	(900) 1	(900) 2	(3,595) 3
		__________	__________	__________
		1,193	1,124	194
		__________	__________	__________
	1 First interim dividend (3.00p) declared in respect of the financial year 2014/15.
	2 First interim dividend (3.00p) declared in respect of the financial year 2013/14.
	3 First three interim dividends (each 3.00p) and the final dividend (3.00p) declared in respect of the financial year 2013/14.

		Six months ended	Six months ended	Year ended
		30 September 2014	30 September 2013	31 March 2014
4.	Return and net asset value per share	£'000	£'000	£'000
	Returns are based on the following attributable assets:
	Revenue return	2,093	2,024	3,789
	Capital return	(847)	354	4,002
		__________	__________	__________
	Total return	1,246	2,378	7,791
		__________	__________	__________
	Weighted average number of Ordinary shares in issue	29,997,580	29,997,580	29,997,580
		__________	__________	__________
	The net asset value per Ordinary share is based on net assets attributable to Ordinary shareholders of £73,947,000 (30 September 2013 - £70,883,000; 31 March 2014 - £74,502,000) and on 29,997,580 (30 September 2013 - 29,997,580; 31 March 2014 - 29,997,580) Ordinary shares in issue at the period end.

5.	Capital reserve
	The capital reserve reflected in the Balance Sheet at 30 September 2014 includes gains of £15,358,000 (30 September 2013 - gains of £14,001,000; 31 March 2014 - gains of £16,149,000) which relate to the revaluation of investments held at the reporting date.

6.	Transaction costs
	During the period expenses were incurred in acquiring or disposing of investments classified as fair value though profit or loss. These have been expensed through capital and are included within gains on investments at fair value in the Statement of Comprehensive Income. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		30 September 2014	30 September 2013	31 March 2014
		£'000	£'000	£'000
	Purchases	8	12	34
	Sales	2	4	10
		__________	__________	__________
		10	16	44
		__________	__________	__________

7.	Related party disclosures
	There were no related party transactions during the period.

8.	Commitments, contingencies and post Balance Sheet events
	At 30 September 2014 there were no contingent liabilities in respect of outstanding underwriting commitments or uncalled capital (30 September 2013 and 31 March 2014 - £nil).

9.	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 financial information for the six months ended 30 September 2014 and 30 September 2013 has not been audited.
	The information for the year ended 31 March 2014 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditor on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.
	This report has not been reviewed or audited by the Company's auditor.

10.	This Half-Yearly Financial Report was approved by the Board on 14 November 2014.

 11.      The half yearly financial report will shortly be available on the Company's website, www.shiresincome.co.uk, and the Interim Report will be posted to shareholders in November 2014 and copies will be available from the Manager.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise.  Investors may not get back the amount they originally invested

 

END

 

 

IR FZLFFZFFXFBE