Half Yearly Report
31 August 2012
Aberdeen Smaller Companies High Income Trust PLC
Half Yearly Financial Report for the six months to 30 June 2012
Aberdeen Smaller Companies High Income Trust PLC aims to provide a high and growing dividend and capital growth from a portfolio invested principally in the ordinary shares of smaller UK companies and UK fixed income securities.
|
|
30 June 2012 |
31 December 2011 |
% change |
|
Equity shareholders' funds (£'000) |
32,025 |
29,525 |
+8.5 |
|
Net asset value per share |
144.85p |
133.54p |
+8.5 |
|
Share price (mid-market) |
118.00p |
105.75p |
+11.6 |
|
Discount to net asset value{A} |
17.7% |
19.9% |
|
|
Dividend yield |
5.1% |
5.7% |
|
|
|
|||
|
{A} Based on IFRS net asset value excluding dividend adjustment of 1.50p (31 December 2011 - 1.50p). |
|||
|
Performance (total return) |
Six months ended |
1 year ended |
3 years ended |
5 years ended |
|
|
30 |
30 June 2012 |
30 June 2012 |
30 June 2012 |
|
Share price |
+ 14.6% |
- 7.3% |
+ 85.1% |
- 37.6% |
|
Net asset value per share |
+ 10.8% |
- 7.1% |
+ 99.0% |
- 29.4% |
|
FTSE SmallCap Index (ex IC's) |
+ 13.4% |
- 6.4% |
+ 40.3% |
+ 26.3% |
|
FTSE All-Share Index |
+ 3.3% |
- 3.1% |
+ 47.4% |
+ 1.9% |
|
iBoxx Sterling Non-Gilts 1-15 Years Index{A} |
+ 4.9% |
+ 6.3% |
+ 29.3% |
+ 31.3% |
|
|
||||
|
{A} Source: Aberdeen Asset Management, iBoxx, Morningstar & Factset. |
||||
|
All figures are for total return and assume re-investment of net dividends excluding transaction costs. |
||||
For further information, please contact:-
Kenneth Harper
Manager, Investment Trust Investor Relations
Aberdeen Asset Management Limited
Telephone 0131 528 4000
INTERIM BOARD REPORT
Investment returns
After the tough market conditions that we saw in 2011 I am pleased to be writing to shareholders against the backdrop of a better equity market performance. In the first half of 2012 there was a sharp rebound in equity markets as investors increased their appetite for risk. For the six-month period to the end of June, the FTSE Smaller Companies (ex Investment Trust) index delivered a total return of 13.4%. The total return on net asset value of the Trust increased 10.8% and as the discount tightened the share price rose 14.6%.
Background
As you will be aware the Aberdeen investment process is based around investing in quality companies which they believe will perform through the economic cycle. The characteristics of these companies mean that their share prices tend to underperform the wider market through periods of very strong market performance so there was a small stock selection underperformance over this reporting period. The characteristics that Aberdeen seeks are quality companies with strong balance sheets and cash flow, thus enabling companies to pay regular and growing dividends. This gives your Board comfort in the sustainability of the superior dividend yield that we pay to our shareholders.
The shares of smaller companies outperformed larger companies over this reporting period as investors were encouraged by the announcement from the European Central Bank of a second tranche of liquidity through the LTRO (Long Term Refinancing Operation). Whilst this provided a period of respite for markets it failed to deal with the deeper issues that continue to plague the Eurozone. . Worries over the strength of economic growth in the Eurozone, coupled with recent statistics that suggest emerging market economic growth is slowing has resulted in us beginning to see these worries feed through to an increased number of company profit downgrades.
The unique structure of the Trust which holds both bonds and equities is currently providing interesting debate at our quarterly Board meeting. Unusually UK government bond yields have fallen at the same time as equity markets have risen, demonstrating investor uncertainty as to the future outlook for the economy. The turmoil in Europe has driven investors to buy any asset viewed as a safe haven, resulting in UK government bond yields falling to record lows. As government bond yields have fallen this has also reduced the yields available on the corporate bonds the trust buys making it difficult to find quality opportunities to improve the bond yield of the Trust. Our Manager is increasingly looking for income opportunities in the equity market where many shares offer dividend yields above those available in certain corporate bonds. There are still attractive opportunities in the equity market but with the economic outlook uncertain and an increasing number of profit warnings the Manager has been very selective in adding to positions.
Performance breakdown
The Trust delivered positive returns across all asset classes: Equities 11.2%, Fixed Interest 3.6% and Preference shares 4.7%. Within the equity portfolio the Industrial Engineering and Aerospace & Defence sectors detracted from performance. In particular the weakness was in three names, Weir Group, Fenner and Chemring. The positive sector contributors were Electronic & Electrical Equipment and Media. Weir Group has been one of the Trust's top performers over most time periods allowing the Manager to take profits prior to recent weakness. The recent weakness is due to a slowdown in U.S. shale gas production. However performance in other regions and the strength of the aftermarket remains robust. On a more positive note XP Power and Oxford Instruments had a strong start to the year. Oxford Instruments has benefited from management setting and delivering against an ambitious set of growth and margin targets. Chemical company Elementis was the other top performer driven by strong growth in key markets, which more than offset the anticipated slowdown in Europe. The trend of robust margins, in combination with a strong order book, has given management comfort in the full-year expectations. In the Media sector the positive contribution came mainly from Euromoney and Huntsworth.
Bond markets have remained volatile with events in the Eurozone playing a central role and the direction of the credit market likely to remain uncertain. With the agreement on direct support for Spain's banks, Europe's politicians have moved in the right direction, although as always with this crisis the time between words and delivery is fraught with danger. The iBoxx Sterling Non-Gilts 1-15 year index returned 6.3% in the year to 30 June 2012 with the funds returning 1.5%. Lower risk credit held up better during the volatile markets, namely utilities Wales & West, Anglian Water and transport group Stagecoach. Telefonica was the main detractor, as the Spanish economy deteriorated on the back of a downgrade of Spain's credit rating by Moody's. Whilst Telefonica is seen as Spanish risk the majority of its revenue and profitability are derived outside of Spain
Activity
With the polarised view in the bond and equity markets touched upon earlier the Manager has been very cautious with current trading. Your Board has been keen to improve the underlying yield of the equity portfolio whilst maintaining its quality and the Manager has continued to pursue this in recent trading. The quality of the underlying portfolio mix has also been improving with a reduction in the preference share portfolio - the Trust's highest yielders but with no dividend growth potential - whilst in tandem upgrading and diversifying the quality of the corporate bond portfolio. Previously the bond portfolio held a number of higher yielding financials which have been replaced with blue chip telecommunication, utilities, and transportation holdings. This decision has benefited the performance overall and made the bond portfolios more secure, and the Manager has offset the subsequent decline in bond yield through improving the yield from the equity portfolio. With the recent sale of the BUPA Finance 6.125% 2049 bond post a strong rebound, this transition in the bond portfolio is nearing a conclusion but there is still scope to increase the yield in the equity portfolio. .
In the equity portfolio the Manager added to a number of the higher yielding names on weakness including Wilmington, Chesnara, Berendsen, Interserve and Rathbones. These companies all offer a yield premium to the market and were part of the strategy to improve the underlying yield. Profits were also taken in two of the top performing names, XP Power and Oxford Instruments. XP Power was trimmed to maintain the absolute weight in the portfolio while Oxford Instruments was reduced due to the valuation looking expensive. The portfolio benefited from the announcement that Umeco had received a recommended offer from Cytec Industries. The deal concluded after the end of the period. The Manager also completed the exit of Zotefoams and Halfords where he felt they had better opportunities elsewhere in the portfolio.
Gearing
The gearing has remained fully drawn over the period with very little change as of the year-end 2011. There is currently no equity gearing; the loan is supporting the bond exposure. The Board regularly reviews the funding rates for our debt, which is currently on an attractive floating rate of 2.66%. Fixing this would be more expensive but the Board will keep this under review and may look at fixing this at some point in the future if it looks likely that interest rates will rise shortly.
Dividend
Dividend growth from our companies has remained subdued throughout the period with company management sounding cautious on the outlook for the second half. Mid to high single digit growth has been the market trend although with corporate balance sheets looking strong, there is scope for these to increase further. Having explained the transition the portfolio has undergone the Board are aware that the dividend has remained flat for the last few years and would like to return to growing the dividend but in these uncertain economic times believe it more important to absolutely focus on the security of the companies that we invest in and await future dividend growth to coincide with growth in underlying company dividends.
In line with the statement released to the market we have declared and paid a second interim dividend of 1.5 pence per share taking the dividend to 3.0 pence for the first half of 2012, which is a 5% annualised yield. The Board regard this as a very attractive yield for our shareholders in a period where cash, government and corporate bond yields are low.
Outlook
Smaller companies look to be heading into a tougher period after a very strong first half performance. Recent GDP numbers out from the UK show the UK economy has shrunk for three consecutive quarters. The economic outlook for countries in the Eurozone periphery has continued to deteriorate and we are starting to see the effects even further afield. Emerging markets have not been immune either with growth from China and Brazil slowing, albeit from much higher levels than in the West. This has all culminated in an increased number of companies warning of lower profit levels and an increased level of caution on the outlook for the second half. Whilst this all reads negatively, companies are in good shape to respond to a period of weaker trading and have strong balance sheets that are supportive of maintaining or growing dividends.
Carolan Dobson
Chairman
31 August 2012
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company and its subsidiaries fall into three broad categories: (i) market risk, comprising interest rate risk and other price risk, (ii) liquidity risk and (iii) credit risk. Information on each of these areas is given within the Annual Report and Accounts for the year ended 31 December 2011.
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 Group has adequate financial resources to continue in operational existence for the foreseeable future.
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 contained within the Half Yearly Financial Report has been prepared in accordance with IAS34; and
· the Interim Board Report (constituting the interim management statement) 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 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 and its subsidiary 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 to 30 June 2012 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements.
For and on behalf of the Board of Aberdeen Smaller Companies High Income Trust PLC
Carolan Dobson
Chairman
31 August 2012
Distribution of Assets and Liabilities
|
|
Valuation at |
Movement during the period |
Valuation at |
|||||
|
|
31 December |
|
|
|
|
30 June |
||
|
|
2011 |
Purchases |
Sales |
Other{A} |
Gains |
2012 |
||
|
|
£'000 |
% |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
% |
|
Listed investments |
|
|
|
|
|
|
|
|
|
Ordinary shares |
29,656 |
100.5 |
3,033 |
(3,141) |
- |
2,537 |
32,085 |
100.2 |
|
Convertibles |
1,116 |
3.8 |
- |
- |
- |
- |
1,116 |
3.5 |
|
Corporate Bonds |
4,957 |
16.8 |
- |
(415) |
(26) |
89 |
4,605 |
14.4 |
|
Other fixed interest |
2,531 |
8.6 |
- |
- |
- |
14 |
2,545 |
7.9 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
38,260 |
129.7 |
3,033 |
(3,556) |
(26) |
2,640 |
40,351 |
126.0 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Current assets |
1,429 |
4.8 |
|
|
|
|
1,824 |
5.7 |
|
Current liabilities |
(164) |
(0.6) |
|
|
|
|
(150) |
(0.5) |
|
Long-term loan |
(10,000) |
(33.9) |
|
|
|
|
(10,000) |
(31.2) |
|
|
_______ |
_______ |
|
|
|
|
_______ |
_______ |
|
Net assets |
29,525 |
100.0 |
|
|
|
|
32,025 |
100.0 |
|
|
_______ |
_______ |
|
|
|
|
_______ |
_______ |
|
Net asset value per Ordinary share |
133.5p |
|
|
|
|
|
144.8p |
|
|
|
_______ |
|
|
|
|
|
_______ |
|
|
|
|
|
|
|
|
|
||
|
{A} Represents amortisation costs on debt securities of £26,000 |
||||||||
Condensed Consolidated Statement of Comprehensive Income
for the half year ended 30 June 2012
|
|
|
Six months ended |
||
|
|
|
30 June 2012 |
||
|
|
|
(unaudited) |
||
|
|
|
Revenue |
Capital |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
|
Dividend income |
|
834 |
- |
834 |
|
Interest income from investments |
|
198 |
(26) |
172 |
|
Other income |
|
2 |
- |
2 |
|
Gains on investments held at fair value |
|
- |
2,640 |
2,640 |
|
|
|
_________ |
_________ |
_________ |
|
Total income |
|
1,034 |
2,614 |
3,648 |
|
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Investment management fees |
|
(79) |
(79) |
(158) |
|
Other administrative expenses |
|
(181) |
- |
(181) |
|
Finance costs of borrowing |
|
(73) |
(73) |
(146) |
|
|
|
_________ |
_________ |
_________ |
|
Profit before taxation |
|
701 |
2,462 |
3,163 |
|
Taxation |
2 |
- |
- |
- |
|
|
|
_________ |
_________ |
_________ |
|
Profit attributable to equity holders |
3 |
701 |
2,462 |
3,163 |
|
|
|
_________ |
_________ |
_________ |
|
Earnings per Ordinary share (pence) |
4 |
3.17 |
11.14 |
14.31 |
|
|
|
_________ |
_________ |
_________ |
|
The total column of this statement represents the Company's Statement of Comprehensive Income, prepared in accordance with IFRS. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies. |
|
|
|
The Company does not have any income or expense that is not included in profit for the period, and therefore the "Profit attributable to equity holders " is also the "Total comprehensive income attributable to equity holders" as defined in IAS 1 (revised). |
|
|
|
All items in the above statement derive from continuing operations. |
Condensed Consolidated Statement of Comprehensive Income
(Continued)
|
|
|
Six months ended |
Year ended |
||||
|
|
|
30 June 2011 |
31 December 2011 |
||||
|
|
|
(unaudited) |
(audited) |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Dividend income |
|
888 |
- |
888 |
1,522 |
- |
1,522 |
|
Interest income from investments |
|
202 |
(32) |
170 |
410 |
(65) |
345 |
|
Other income |
|
4 |
- |
4 |
4 |
- |
4 |
|
Gains/(losses) on investments held at fair value |
|
- |
1,457 |
1,457 |
- |
(4,654) |
(4,654) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Total income |
|
1,094 |
1,425 |
2,519 |
1,936 |
(4,719) |
(2,783) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Expenses |
|
|
|
|
|
|
|
|
Investment management fees |
|
(85) |
(85) |
(170) |
(162) |
(162) |
(324) |
|
Other administrative expenses |
|
(157) |
- |
(157) |
(304) |
- |
(304) |
|
Finance costs of borrowing |
|
(69) |
(69) |
(138) |
(141) |
(141) |
(282) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Profit/(loss) before taxation |
|
783 |
1,271 |
2,054 |
1,329 |
(5,022) |
(3,693) |
|
Taxation |
2 |
- |
- |
- |
- |
- |
- |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Profit/(loss) attributable to equity holders |
3 |
783 |
1,271 |
2,054 |
1,329 |
(5,022) |
(3,693) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Earnings per Ordinary share (pence) |
4 |
3.54 |
5.75 |
9.29 |
6.01 |
(22.71) |
(16.70) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
Condensed Consolidated Balance Sheet
as at 30 June 2012
|
|
|
As at |
As at |
As at |
|
|
|
30 June |
30 June |
31 December |
|
|
|
2012 |
2011 |
2011 |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
Notes |
£'000 |
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
|
Ordinary shares |
|
32,085 |
35,935 |
29,656 |
|
Convertibles |
|
1,116 |
1,193 |
1,116 |
|
Corporate bonds |
|
4,605 |
5,255 |
4,957 |
|
Other fixed interest |
|
2,545 |
2,678 |
2,531 |
|
|
|
____________ |
____________ |
____________ |
|
Securities at fair value |
|
40,351 |
45,061 |
38,260 |
|
|
|
____________ |
____________ |
____________ |
|
Current assets |
|
|
|
|
|
Other receivables |
|
433 |
568 |
380 |
|
Cash and cash equivalents |
|
1,391 |
564 |
1,049 |
|
|
|
____________ |
____________ |
____________ |
|
Total current assets |
|
1,824 |
1,132 |
1,429 |
|
|
|
____________ |
____________ |
____________ |
|
Total assets |
|
42,175 |
46,193 |
39,689 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
(150) |
(257) |
(164) |
|
|
|
____________ |
____________ |
____________ |
|
Total current liabilities |
|
(150) |
(257) |
(164) |
|
|
|
____________ |
____________ |
____________ |
|
Non-current liabilities |
|
|
|
|
|
Long-term loan |
|
(10,000) |
(10,000) |
(10,000) |
|
|
|
____________ |
____________ |
____________ |
|
Total liabilities |
|
(10,150) |
(10,257) |
(10,164) |
|
|
|
____________ |
____________ |
____________ |
|
Net assets |
|
32,025 |
35,936 |
29,525 |
|
|
|
____________ |
____________ |
____________ |
|
Issued capital and reserves attributable to equity holders |
|
|
|
|
|
Called-up share capital |
|
11,055 |
11,055 |
11,055 |
|
Share premium account |
|
11,892 |
11,892 |
11,892 |
|
Capital redemption reserve |
|
2,032 |
2,032 |
2,032 |
|
Capital reserve |
5 |
5,011 |
8,842 |
2,549 |
|
Revenue reserve |
|
2,035 |
2,115 |
1,997 |
|
|
|
____________ |
____________ |
____________ |
|
|
|
32,025 |
35,936 |
29,525 |
|
|
|
____________ |
____________ |
____________ |
|
Net asset value per Ordinary share (pence) |
|
144.85 |
162.53 |
133.54 |
|
|
|
____________ |
____________ |
____________ |
Condensed Consolidated Statement of Changes in Equity
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
|
Share |
Capital |
|
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2011 |
|
11,055 |
11,892 |
2,032 |
2,549 |
1,997 |
29,525 |
|
Revenue profits for the period |
|
- |
- |
- |
- |
701 |
701 |
|
Capital profits for the period |
|
- |
- |
- |
2,462 |
- |
2,462 |
|
Equity dividends |
3 |
- |
- |
- |
- |
(663) |
(663) |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Balance at 30 June 2012 |
|
11,055 |
11,892 |
2,032 |
5,011 |
2,035 |
32,025 |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
|
Share |
Capital |
|
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2010 |
|
11,055 |
11,892 |
2,032 |
7,571 |
1,995 |
34,545 |
|
Revenue profits for the period |
|
- |
- |
- |
- |
783 |
783 |
|
Capital profits for the period |
|
- |
- |
- |
1,271 |
- |
1,271 |
|
Equity dividends |
3 |
- |
- |
- |
- |
(663) |
(663) |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Balance at 30 June 2011 |
|
11,055 |
11,892 |
2,032 |
8,842 |
2,115 |
35,936 |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 December 2011 (audited) |
|
|
|
|
|
|
|
|
|
|
|
Share |
Capital |
|
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2010 |
|
11,055 |
11,892 |
2,032 |
7,571 |
1,995 |
34,545 |
|
Revenue profits for the year |
|
- |
- |
- |
- |
1,329 |
1,329 |
|
Capital losses for the year |
|
- |
- |
- |
(5,022) |
- |
(5,022) |
|
Equity dividends |
3 |
- |
- |
- |
- |
(1,327) |
(1,327) |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Balance at 31 December 2011 |
|
11,055 |
11,892 |
2,032 |
2,549 |
1,997 |
29,525 |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
Condensed Consolidated Cash Flow Statement
for the half year ended 30 June 2012
|
|
Six months ended |
Six months ended |
Year |
|
|
30 June |
30 June |
31 December 2011 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
£'000 |
£'000 |
£'000 |
|
Cash flows from operating activities |
|
|
|
|
Investment income received |
972 |
963 |
1,872 |
|
Other income |
2 |
1 |
- |
|
Deposit interest received |
- |
- |
2 |
|
Investment management fees paid |
(154) |
(164) |
(330) |
|
Other cash expenses |
(177) |
(134) |
(274) |
|
|
___________ |
___________ |
___________ |
|
Cash generated from operations |
643 |
666 |
1,270 |
|
Interest paid |
(161) |
(161) |
(281) |
|
|
___________ |
___________ |
___________ |
|
Net cash inflows from operating activities |
482 |
505 |
989 |
|
|
___________ |
___________ |
___________ |
|
Cash flows from investing activities |
|
|
|
|
Purchases of investments |
(3,033) |
(3,783) |
(8,178) |
|
Sales of investments |
3,556 |
2,953 |
8,013 |
|
|
___________ |
___________ |
___________ |
|
Net cash inflows/(outflows) from investing activities |
523 |
(830) |
(165) |
|
|
___________ |
___________ |
___________ |
|
Cash flows from financing activities |
|
|
|
|
Equity dividends paid |
(663) |
(663) |
(1,327) |
|
|
___________ |
___________ |
___________ |
|
Net cash outflows from financing activities |
(663) |
(663) |
(1,327) |
|
Net increase/(decrease) in cash and cash equivalents |
342 |
(988) |
(503) |
|
Cash and cash equivalents at the start of the period |
1,049 |
1,552 |
1,552 |
|
|
___________ |
___________ |
___________ |
|
Cash and cash equivalents at the end of the period |
1,391 |
564 |
1,049 |
|
|
___________ |
___________ |
___________ |
|
Cash and cash equivalents comprise: |
|
|
|
|
Cash and cash equivalents |
1,391 |
564 |
1,049 |
|
|
___________ |
___________ |
___________ |
|
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 ('IFRIC') of the IASB. They have also been prepared using the same accounting policies applied for the year ended 31 December 2011 financial statements, which received an unqualified audit report. |
|
|
|
|
|
|
|
The Company's wholly owned subsidiary undertaking, Shirescot Securities Limited, an investment dealing company, was dissolved on 6 January 2012. At the date of dissolution, Shirescot Securities Limited had net assets of £nil, the inter-company balance having been extinguished during the year ended 31 December 2011. The inter-company balance was written off against the Company's capital reserve. |
|
|
|
|
|
|
|
The comparative financial information for the six months ended 30 June 2011 and for the full year ended 31 December 2011, incorporate the financial statements of Shirescot Securities Limited. |
|
|
|
|
|
|
(b) |
Dividends payable |
|
|
|
Dividends are recognised in the period in which they are paid. |
|
2. |
Taxation |
|
|
The taxation expense reflected in the Condensed Statement of Comprehensive Income is based on management's best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used for the year to 31 December 2012 is 24.5%. |
|
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 June 2012 |
30 June 2011 |
31 December 2011 |
|
|
|
£'000 |
£'000 |
£'000 |
|
|
Revenue |
701 |
783 |
1,329 |
|
|
Dividends declared |
(663){A} |
(663){B} |
(1,327){C} |
|
|
|
_________ |
_________ |
_________ |
|
|
|
38 |
120 |
2 |
|
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
|
{A} Dividends declared relate to first two interim dividends (both 1.50p each) declared in respect of the financial year 2012. |
|||
|
|
{B} Dividends declared relate to first two interim dividends (both 1.50p each) declared in respect of the financial year 2011. |
|||
|
|
{C} Dividends declared relate to the four interim dividends declared in respect of the financial year 2011 totalling 6.00p. |
|||
|
|
|
Six months ended |
Six months ended |
Year |
|
|
|
30 June 2012 |
30 June 2011 |
31 December 2011 |
|
4. |
Return and net asset value per share |
p |
p |
p |
|
|
Revenue return |
3.17 |
3.54 |
6.01 |
|
|
Capital return |
11.14 |
5.75 |
(22.71) |
|
|
|
_________ |
_________ |
_________ |
|
|
Total return |
14.31 |
9.29 |
(16.70) |
|
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
|
The figures above are based on the following attributable assets: |
|
|
|
|
|
|
£'000 |
£'000 |
£'000 |
|
|
Revenue return |
701 |
783 |
1,329 |
|
|
Capital return |
2,462 |
1,271 |
(5,022) |
|
|
|
_________ |
_________ |
_________ |
|
|
Total return |
3,163 |
2,054 |
(3,693) |
|
|
|
_________ |
_________ |
_________ |
|
|
Weighted average number of Ordinary shares in issue |
22,109,765 |
22,109,765 |
22,109,765 |
|
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
|
The net asset value per share is based on net assets attributable to shareholders of £32,025,000 (30 June 2011 - £35,936,000; 31 December 2011 - £29,525,000) and on 22,109,765 (30 June 2011 - 22,109,765; 31 December 2011 - 22,109,765) Ordinary shares in issue at each period end. |
|||
|
5. |
Capital reserves |
|
|
The capital reserve reflected in the Balance Sheet at 30 June 2012 includes gains of £3,930,000 (30 June 2011 - gains of £8,031,000; 31 December 2011 - gains of £1,897,000) 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 held-at-fair-value investments in the Statement of Comprehensive Income. The total costs were as follows: |
|||
|
|
|
|
|
|
|
|
|
Six months ended |
Six months ended |
Year ended |
|
|
|
30 June 2012 |
30 June 2011 |
31 December 2011 |
|
|
|
£'000 |
£'000 |
£'000 |
|
|
Purchases |
17 |
22 |
44 |
|
|
Sales |
4 |
3 |
7 |
|
|
|
_________ |
_________ |
_________ |
|
|
|
21 |
25 |
51 |
|
|
|
_________ |
_________ |
_________ |
|
7. |
Publication of non-statutory accounts |
|
|
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 June 2012 and 30 June 2011 has not been audited. |
|
|
|
|
|
The information for the year ended 31 December 2011 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006. |
|
8. |
The Half Yearly Financial Report was approved by the Board on 31 August 2012. |
|
9. |
The Half Yearly Financial Report has not been reviewed by the Company's auditors.
|
10. The Half Yearly Financial Report is available on the Company's website, www.aberdeensmallercompanies.co.uk. The Half Yearly Report will be posted to shareholders in September 2012 and copies will be available from the investment 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
This information is provided by RNS
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