Half Yearly Report

RNS Number : 3216J
Artemis Alpha Trust PLC
16 December 2015
 

ARTEMIS ALPHA TRUST PLC (the "Company")

Half-Yearly Financial Report for the six months ended 31 October 2015

This announcement contains regulated information

 

Chairman's Statement

Performance

The last six months have been a difficult time for financial markets. The Company's net asset value fell by 3.6 per cent on a total return basis in the six months to 31 October 2015. The FTSE All-Share Index declined by 5.7 per cent over the same period. Concerns over China's economy grew, intensifying fears about the prospects for emerging markets and the global economy as a whole. In the UK, meanwhile, the optimism that followed the surprise majority in May's general election has given way to questions over the country's continued membership of the European Union.

The fall in the Company's net asset value over the period was primarily due to changes in the valuation of its unquoted investments, a number of which raised additional capital to develop their businesses. It was disappointing that several of these fundraisings were done at prices below their carrying values, leading us to mark these investments to the level at which the new capital was raised. One of these received considerable attention in the press, when it was announced that BAE Systems was investing in our portfolio company, Reaction Engines. We believe this is a significant development. Although the write-down in its valuation is painful, we believe the fundraising leaves Reaction Engines better placed to develop its rocket technology.

Gearing was reduced from 9.1 per cent of net assets at the start of the period to 3.4 per cent at 31 October 2015. The proceeds from Lynton Holding Asia were received in October, and these have been used to reduce the Company's borrowings. The percentage of the portfolio represented by unquoted companies has been reduced from 32.2 per cent to 28.2 per cent.

More details on the portfolio and performance are included in the Investment Manager's Review.

Earnings & dividends

Revenue earnings per share for the six months to 31 October 2015 were 2.01p (2014: 1.87p). As I outlined in my Chairman's Statement earlier this year, the Board and Investment Manager have targeted a 10 per cent annual increase in the Company's dividend. With this in mind, the Board has declared a first interim dividend of 1.40p per ordinary share (2014: 1.25p). This is an increase of 12.0 per cent over the equivalent dividend last year. This will be paid on 29 January 2016 to shareholders on the register as at 30 December 2015.

Share capital

At 31 October 2015 the share price stood at a 16.7 per cent discount to net asset value, which is wider than both the Board and Investment Manager would like; this is being kept under review. During the period we saw a number of existing investors increase their holdings in the Company at the current level of discount which meant there has been no significant selling pressure on the share price. Following the period end, a small buyback of 83,000 shares was made at a discount to net asset value of 19 per cent.

Outlook

The volatility that characterised markets during the reporting period has continued since the end of October. Given the uncertainty over the global economy and wider geo-political concerns, this volatility looks set to continue. In this environment, stock-picking is even more important and should allow the fund managers to generate value for shareholders.

Communication with shareholders

The Board is always interested to hear the views of shareholders, and it was pleasing to see many of you at the annual general meeting in October 2015. Further information can be found on the website - artemisalphatrust.co.uk - which is updated monthly.

 

Duncan Budge

Chairman

16 December 2015

 

Investment Manager's Review

 

Performance

Over the half year under review the Company's net asset value fell by 3.6 per cent versus a fall of 5.7 per cent in the FTSE All-Share Index.

 

As global stock markets weakened, the portfolio benefited from its strong bias to the UK economy. Slowing growth in China sent commodity prices sharply lower, prompting falls in the share prices of mining and oil & gas companies. However, the portfolio's exposure to mining is negligible and its weighting to oil & gas is considerably lower than it was in the past.

 

Review

Our two core investment themes - non-bank financials (predominantly fund management businesses) and online companies - remained intact. These investments, however, had a relatively quiet six months. Instead, the Company's strongest performers were some of the smaller companies that we bought because of their attractive valuations, strong prospects for growth and excellent management teams. They included Martinco, a lettings business, and Penna Consulting, a recruitment and personnel management company.

 

Founded in Yeovil by the eponymous Richard Martin, Martinco has grown into one of the UK's largest lettings networks through a combination of organic and acquisitive growth. It floated just under two years ago and used the capital to grow its franchised network in a highly fragmented market. Although its estate agency business is growing, it is predominantly a lettings company with high recurring revenues and strong cash generation. Although the share price has doubled in 2015, it still has a small market share in a sector where the prospects for growth are strong and which is ripe for consolidation.

 

Penna Consulting has also been an excellent performer over the last six months. Its business is equally split between outplacement and recruitment. Penna is the market leader in outplacement - it has contracts to help employees who have been made redundant, often by structural change, to find new jobs. The other side of its business is a more traditional recruitment business with customers in both the public and private sectors. It is seeing strong growth in both areas. Like Martinco, its share price has doubled over the last year but its prospects remain good.

 

The greatest positive contribution came from Mporium Group, which provides an e-commerce platform that allows consumers to browse, checkout and pay for goods using their smartphones. After two refinancings and the appointment of a new management team, it is on the cusp of delivering a revamped product. Other positive performances came from MJ Gleeson, a housebuilder focused on the north of England and Booker, a wholesaler and cash & carry group.

Five largest stock contributors

Market

Contribution %

Mporium Group

AIM

0.9

Martinco

AIM

0.9

Penna Consulting

AIM

0.7

Oxford Nanopore Technologies

Unquoted

0.7

Powerflute

AIM

0.6

Five largest stock detractors

Market

Contribution %

Starcount

Unquoted

(1.6)

Reaction Engines

Unquoted

(1.2)

Physiolab Technologies

Unquoted

(0.9)

Gaming Realms

AIM

(0.7)

Pittards

AIM

(0.7)

 

The continuing weakness in commodities has been negative for some of the portfolio's oil & gas holdings. As noted in previous reports, however, the Company's exposure to this sector is well below historic levels, at 7.6 per cent of the portfolio.

 

Elsewhere, we wrote down the carrying values of three unquoted holdings: Starcount, Reaction Engines and Physiolab Technologies and there was also one valuation uplift.

 

Starcount was written down following the completion of a £5 million equity raising, a large part of which came from the management (Edwina Dunn and Clive Humby). The price of the issue was a reflection of its slower-than-expected progress in winning clients. We continue to believe that, despite the delays, Starcount is well placed to deliver substantial value in social media data for its clients.

 

Reaction Engines was written down to reflect the valuation implied by BAE Systems' £20 million investment, for which it received a 20 per cent stake in the company. This investment represents a positive validation of Reaction Engines' technology and will unlock further funding from the government, which was conditional on Reaction Engines partnering with a large aerospace company. So despite the write-down, this must be seen as a highly positive development.

 

The write-down in Physiolab Technologies, meanwhile, occurred as technical glitches delayed sales of its product, a thermal compression system. This resulted in a short-term cash-flow problem. The valuation that the existing investors proposed seemed appropriate given the product delays. However, we remain positive about the company's potential. We believe its proprietary device, which helps to repair soft tissue through heating and cooling, is far superior to anything else on the market.

 

Oxford Nanopore Technologies raised further capital for the continued development of its business and this was done at a 40 per cent uplift. We also took an opportunity to realise part of this holding in the period.

 

Elsewhere among the Company's unquoted holdings, we received the cash from Lynton Holding Asia (reported in a prior period). For now, we have used this to reduce the Company's level of gearing.

 

In terms of transactions, our largest purchase was BP. We feel it is attractively priced, being one of the few oil companies that can operate profitably in an environment where oil prices remain low.

 

Other new investments included: Millennium & Copthorne, a hotel business trading at a substantial discount to net asset value; Majestic Wine, which after several years of lacklustre performance is being revamped under a new management team; and Helical Bar, an entrepreneurial property company that has recently redeveloped land formerly belonging to Barts Hospital. We added one new unquoted holding during the period. Oxford Sciences Innovation has been established to commercialise the intellectual property developed by the University of Oxford's mathematical, physical, life sciences and medical sciences divisions.

 

In terms of sales, we disposed of the majority of the Company's holding in Telford Homes after a period of strong performance. We took profits in Redcentric, 4D Pharma, Powerflute and Brewin Dolphin. We sold all of the Company's holding in Velocys.

 

Outlook

Some degree of uncertainty always attends investing in stocks. Without it, the risk premium that means equities tend to outperform over the long term would not exist. Current conditions, however, seem even more uncertain than usual. In part, this is because so much rests on the actions and rhetoric of central bankers; even minor shifts of tone provoke violent lurches in equity markets. After years of largely futile guesswork, the market now thinks it knows when the US Federal Reserve will start to increase interest rates. The uncertainty, however, has simply transferred to new questions: How quickly will borrowing costs rise? When will the Bank of England follow? And how many euros will the European Central Bank need to (electronically) print to prevent deflation?

 

Another question remains: can policymakers in Beijing shift the Chinese economy away from its dependence on capital investment without provoking a slump in demand? As alluded to above, the fortunes of some of the UK's largest companies depend on the answer. Meanwhile, the prospect of a referendum on whether the UK should remain a member of the EU could yet cause violent swings in currency, bond and equity markets.

 

Given all this, volatility in equity markets seems likely to persist. Our response is simple but not, we hope, naive. We won't try to second-guess changes in monetary policy or engage in political psephology. Instead, we stick to stocks. The Company's portfolio has little resemblance to any benchmark and it remains a diverse selection of companies united only by their potential to produce superior growth. Within that, there are a number of continuing thematic trends - such as our enthusiasm for asset managers and for companies exploiting new markets being opened up by the internet. More often than not, however, the growth that we anticipate will often result from factors unique to each of our holdings rather than specific macro or political events.

 

In the short term, the Company's performance will not be immune to gyrations in the wider UK market. Over the longer term, however, we believe the underlying financial characteristics of our holdings will count. By sticking to our stocks, we seek to generate returns on shareholders' behalf, in 2016 and beyond.

 

John Dodd & Adrian Paterson

Fund managers

Artemis Fund Managers Limited

16 December 2015

 

Responsibility Statement of the Directors in respect of the Half-Yearly Financial Report

We confirm that to the best of our knowledge, in respect of the Half-Yearly Financial Report for the six months ended 31 October 2015:

 

·     the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' issued by the International Accounting Standards Board as adopted by the EU;

·      having considered the expected cash flows and operational costs of the Company for the 18 months from the period end, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the going concern basis of accounting continues to be used in the preparation of the Half-Yearly Financial Report;

·      the interim management report includes a fair review of the information required by:

a)   Disclosure and Transparency Rule 4.2.7R (indication of important events during the first six months; and a description of the principal risks and uncertainties for the remaining six months of the year); and

b)   Disclosure and Transparency Rule 4.2.8R (related party transactions).

The Half-Yearly Financial Report for the six months ended 31 October 2015 was approved by the Board and the above responsibility statement was signed on its behalf by:

 

For and on behalf of the Board

 

Duncan Budge

Chairman

16 December 2015

 

Condensed Consolidated Income Statement

For the six months ended 31 October 2015

 

 

Six months ended

31 October 2015

(unaudited)

Six months ended

31 October 2014

(unaudited)

Year ended

30 April 2015

(audited)

 

 

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Investment income

 

1,342

-

1,342

1,174

-

1,174

2,415

-

2,415

Other income

 

14

-

14

(109)

-

1,174

2,415

-

2,415

Total income

 

1,356

-

1,356

1,065

-

1,065

2,417

-

2,417

(Losses)/gains on investments

 

-

 (5,013)

 (5,013)

-

3,126

3,126

-

(1,937)

(1,937)

(Losses)/gains on current asset investments

 

 (183)

-

 (183)

28

-

28

(63)

-

(63)

Currency losses

 

-

(39)

(39)

-

(2)

(2)

-

(4)

(4)

Total income/(loss)

 

1,173

 (5,052)

 (3,879)

1,093

3,124

4,217

2,354

(1,941)

413

Expenses

 

 

 

 

 

 

 

 

 

 

Investment management fee

 

 (43)

 (389)

 (432)

(49)

(436)

(485)

(93)

(839)

(932)

Other expenses

 

(238)

(2)

(240)

(207)

(10)

(217)

(416)

(10)

(426)

Profit/(loss) before finance costs and tax

 

892

 (5,443)

 (4,551)

837

2,678

3,515

1,845

(2,790)

(945)

Finance costs

 

(20)

(186)

(206)

(28)

(252)

(280)

(48)

(442)

(490)

Profit/(loss) before tax

 

872

 (5,629)

 (4,757)

809

2,426

3,235

1,797

(3,232)

(1,435)

Tax

 

 (11)

-

 (11)

(3)

-

(3)

(20)

-

(20)

Profit/(loss) for the period per ordinary share

 

861

 (5,629)

 (4,768)

806

2,426

3,232

1,777

(3,232)

(1,455)

Earnings/ (loss) for the period

 

2.01p

(13.14)p

(11.13)p

1.87p

5.62p

7.49p

4.12p

(7.50)p

(3.38)p

 

The total column of this statement represents the statement of comprehensive income of the Group, prepared in accordance with International Financial Reporting Standards. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations.

All income is attributable to the equity shareholders of Artemis Alpha Trust plc. There are no minority interests.

 

Condensed Consolidated Balance Sheet

As at 31 October 2015

 

 

31 October 2015

(unaudited)

£'000

31 October 2014

(unaudited)

£'000

30 April  2015

(audited)

£'000

Non-current assets

 

 

 

 

Investments

 

137,164

156,492

150,253

Current assets

 

 

 

 

Investments held by subsidiary

 

1,382

813

1,289

Other receivables

 

338

286

1,466

Cash and cash equivalents

 

2,048

1,050

1,778

 

 

3,768

2,149

4,533

Total assets

 

140,932

158,641

154,786

Current liabilities

 

 

 

 

Other payables

 

 (401)

(444)

(503)

Bank loan

 

 (6,500)

(12,500)

(14,500)

 

 

 (6,901)

(12,944)

(15,003)

Net assets

 

134,031

145,697

139,783

Share capital

 

500

520

503

Share premium

 

645

640

644

Special reserve

 

54,598

55,290

54,598

Capital redemption reserve

 

90

70

87

Retained earnings - revenue

 

3,244

2,936

3,368

Retained earnings - capital

 

74,954

86,241

80,583

Total equity

 

134,031

145,697

139,783

Net asset value per ordinary share (pence)

 

312.86p

338.12p

326.28p

 

 

Condensed Consolidated Statement of Changes in Equity

For the six months ended 31 October 2015

 

 

Six months ended 31 October 2015 (unaudited)

 

 

 

 

 

Retained earnings

 

 

Share

Share

Special

Capital redemption

 

 

 

capital

premium

reserve

reserve

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 May 2015

 503

644

 54,598

 87

 3,368

 80,583

 139,783

Total comprehensive income:

 

 

 

 

 

 

 

Profit/(loss) for the period

-

-

-

-

 861

 (5,629)

 (4,768)

Transactions with owners recorded directly to equity:

 

 

 

 

 

 

 

Cancellation of ordinary shares from treasury

 (3)

-

-

 3

-

-

-

Conversion of subscription shares

 -

1

-

-

-

-

 1

Dividends paid

-

-

-

-

 (985)

-

 (985)

At 31 October 2015

 500

 645

 54,598

 90

 3,244

 74,954

 134,031

 

 

Six months ended 31 October 2014 (unaudited)

 

 

 

 

 

Retained earnings

 

 

Share

Share

Special

Capital redemption

 

 

 

 

capital

premium

reserve

reserve

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 May 2014

 539

 636

 55,649

 51

 2,994

 83,815

 143,684

Total comprehensive income:

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

 806

 2,426

 3,232

Transactions with owners recorded directly to equity:

 

 

 

 

 

 

 

Repurchase of ordinary shares into treasury

-

-

 (359)

-

-

-

 (359)

Cancellation of ordinary shares from treasury

 (19)

-

-

 19

-

-

-

Conversion of subscription shares

-

 4

-

-

-

-

 4

Dividends paid

-

-

-

-

 (864)

-

 (864)

At 31 October 2014

520

640

55,290

70

2,936

86,241

145,697

 

 

Year ended 30 April 2015 (audited)

 

 

 

 

 

Retained earnings

 

 

Share

Share

Special

Capital redemption

 

 

 

 

capital

premium

reserve

reserve

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 May 2014

 539

 636

 55,649

 51

 2,994

 83,815

 143,684

Total comprehensive income:

 

 

 

 

 

 

 

Profit/(loss) for the year

-

-

-

-

 1,777

 (3,232)

 (1,455)

Transactions with owners recorded directly to equity:

 

 

 

 

 

 

 

Repurchase of ordinary shares into treasury

-

-

 (1,051)

-

-

-

 (1,051)

Cancellation of ordinary shares from treasury

 (36)

-

-

 36

-

-

-

Conversion of subscription shares

-

 8

-

-

-

-

 8

Dividends paid

-

-

-

-

 (1,403)

-

 (1,403)

At 30 April 2015

 503

 644

 54,598

 87

 3,368

 80,583

 139,783

 

 

Condensed Consolidated Cash Flow Statement

For the six months ended 31 October 2015

 

Six months ended

Six months ended

 

 

31 October 2015

31 October 2014

Year ended     30 April 2015

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Operating activities

 

 

 

(Loss)/profit before tax

 (4,757)

3,235

(1,435)

Interest payable

206

280

490

Losses/(gains) on investments

 5,013

(3,126)

1,937

Losses/(gains) on current asset investments

 183

(28)

63

Currency losses

 39

2

4

Decrease in other receivables

 15

14

15

(Decrease)/increase in other payables

 (44)

268

263

Net cash inflow from operating activities before interest and tax

655

645

1,337

Interest paid

 (206)

(280)

(490)

Irrecoverable overseas tax suffered

 (11)

(3)

(20)

Net cash inflow from operating activities

 438

362

827

Investing activities

 

 

 

Purchase of investments

 (23,718)

(12,580)

(31,548)

Sales of investments

32,573

27,150

45,610

Net cash inflow from investing activities

8,855

14,570

14,062

Financing activities

 

 

 

Repurchase of ordinary shares into treasury

-

(457)

(1,149)

Conversion of subscription shares

1

4

8

Dividends paid

 (985)

(864)

(1,403)

Net cash outflow from financing activities

 (984)

 (1,317)

 (2,544)

Net increase in cash and cash equivalents

8,309

13,615

12,345

Cash and cash equivalents at the start of the period

 (12,722)

(25,063)

(25,063)

Effect of foreign exchange rate changes

 (39)

 (2)

 (4)

Cash and cash equivalents at the end of the period

 (4,452)

 (11,450)

 (12,722)

Bank loan

 (6,500)

 (12,500)

 (14,500)

Cash

2,048

1,050

1,778

 

 (4,452)

 (11,450)

 (12,722)

 

Notes

1.  Accounting policies

The Group's Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', the provisions of the Companies Act 2006 and with the guidance set out in the Statement of Recommended Practice for Investment Trust Companies and Venture Capital Trusts ("SORP") issued by the Association of Investment Companies in November 2014.

The Half-Yearly Financial Report has been prepared under the same accounting policies as the Annual Financial Statements for the year ended 30 April 2015, with the following amendment, which had no significant impact on the net assets at the balance sheet date or the earnings for the six months ended 31 October 2015.

a)   Basis of preparation

Where presentational guidance set out in the SORP is consistent with the requirements of International Financial Reporting Standards as adopted by the European Union, the financial statements have been prepared in accordance with the SORP.

2.  Earnings per ordinary share

 

Six months ended

Six months ended

Year ended

 

31 October

31 October

30 April

 

2015

2014

2015

Earnings/(loss) per ordinary share is based on:

 

 

 

Revenue earnings (£'000)

 861

806

1,777

Capital (loss)/earnings (£'000)

 (5,629)

2,426

(3,232)

Total (loss)/earnings (£'000)

 (4,768)

3,232

(1,455)

Weighted average number of ordinary shares in issue during the period (basic and diluted)

42,841,041

43,164,248

43,086,557

 

3.  Net asset value per ordinary share

 

As at

As at

As at

 

31 October

31 October

30 April

 

2015

2014

2015

Net asset value per ordinary share is based on:

134,031

145,697

139,783

Net assets (£'000)

 

 

 

Number of shares in issue at the end of the period (basic and diluted)

42,841,142

43,089,843

42,840,877

During the period the Company did not buy back any shares into treasury (six months ended 31 October 2014: 118,200; year ended 30 April 2015: 368,200). 265 subscription shares were exercised during the period and the same number of ordinary shares were issued in respect of these (six months ended 31 October 2014: 1,258; year ended 30 April 2015: 2,292).

 

4.  Dividends

 

Six months ended

Six months ended

Year ended

 

31 October

31 October

30 April

 

2015

2014

2015

 

£'000

£'000

£'000

Second interim dividend for the year ended 30 April 2014 - 2.00p

-

864

864

First interim dividend for the year ended 30 April 2015 - 1.25p

-

-

539

Second interim dividend for the year ended 30 April 2015 - 2.30p

985

-

-

 

985

864

1,403

A first interim dividend for the year ending 30 April 2016 of £600,000 (1.40p per ordinary share) has been declared. This will be paid on 29 January 2016 to those shareholders on the register at close of business on 30 December 2015.

 

5.  Analysis of retained earnings - capital

 

As at

31 October 2015

As at

31 October 2014

As at

30 April 2015

Retained earnings - capital (realised)

86,867

76,830

81,264

Retained earnings - capital (unrealised)

(11,913)

9,411

(681)

 

74,954

86,241

80,583

 

 

 

 

6.  Comparative information

The financial information for the six months ended 31 October 2015 and 31 October 2014 has not been audited and does not constitute statutory financial statements as defined in Section 234 of the Companies Act 2006.

The information for the year ended 30 April 2015 has been extracted from the Audited Financial Statements for the year ended 30 April 2015. These financial statements contained an unqualified auditor's report and have been lodged with the Registrar of Companies and did not contain a statement required under Section 498 of the Companies Act 2006.

7.  Principal risks and uncertainties

Pursuant to DTR 4.2.7R of the Disclosure and Transparency Rules, the principal risks faced by the Company include general market price risk, liquidity risk, regulatory and financial risks.

These risks, which have not materially changed since the Annual Report for the year ended 30 April 2015, and the way in which they are managed, are described in more detail in the Annual Report for the year ended 30 April 2015 which is available on the website artemisalphatrust.co.uk.

8.  Related party transactions

There were no related party transactions during the period. The existence of an independent Board of Directors demonstrates that the Company is free to pursue its own financial and operating policies and therefore, under IAS 24: Related Party Disclosures, the Investment Manager is not considered to be a related party.

9. Valuation of investments

All investments are designated as fair value through profit or loss at initial recognition and all gains and losses arise on investments designated as fair value through profit or loss. Where investments are considered to be readily realisable for cash, the fair value gains and losses recognised in these financial statements are treated as realised. All other fair value gains and losses are treated as unrealised.

IFRS 7 'Financial Instruments: Disclosures' requires an entity to provide an analysis of investments held at fair value through profit and loss using a fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value. The hierarchy used to analyse the fair values of financial assets is set out below.

Level 1 - investments with quoted prices in an active market;

Level 2 - investments whose fair value is based directly on observable current market prices or is indirectly derived from market prices; and

Level 3 - investments whose fair value is determined using a valuation technique based on assumptions that are not supported by observable current market prices, or are not based on observable market data.

The investments held at the balance sheet date fell in to the categories, Level 1, Level 2 and Level 3. The values in these categories are summarised as part of this note. Any investments that are delisted or suspended from a stock exchange are transferred from Level 1 to Level 3.

 

31 October

31 October

30 April

 

2015

2014

2015

 

£'000

£'000

£'000

UK quoted investments (Level 1)

 

 

 

- UK listed

40,217

30,015

32,508

- AIM quoted

52,153

60,834

63,090

- Fixed interest

-

256

-

- Preference shares

207

299

308

Overseas quoted investments (Level 1)

2,341

3,968

2,655

Mutual funds (Level 2)

3,503

3,860

3,394

Unquoted investments (Level 3)

 

 

 

- Equities and warrants

34,958

53,747

44,069

- Fixed interest

2,646

2,304

3,099

- Preference shares

494

522

486

- Other

645

687

644

 

137,164

156,492

150,253

The valuation of the Level 3 investments would not be significantly different had reasonably possible alternative valuation bases been applied.

Details of the movements in Level 3 assets during the six months ended 31 October 2015 are set out in the table below.

 

£'000

Level 3

 

Opening book cost

50,234

Opening fair value adjustment

(1,936)

Opening valuation

48,298

Movements in the year:

 

Purchases at cost

3,855

Sales - proceeds

(7,808)

Sales - realised gains on sales

(2,319)

Transfer from unquoted investments (cost)

(1,850)

Transfer from unquoted investments (unrealised loss)

1,342

Decrease/Increase in fair value adjustment

(2,776)

Closing valuation

38,742

Closing book cost

42,112

Closing fair value adjustment

(3,370)

 

38,742

 

Copies of the Half-Yearly Financial Report for the six months ended 31 October 2015 will be sent to shareholders shortly and will be available from the registered office at Cassini House, 57 St James's Street, London SW1A 1LD as well as on the website, artemisalphatrust.co.uk.

 

Artemis Fund Managers Limited

Company Secretary

 

For further information, please contact:

Artemis Fund Managers Limited

Telephone: 0131 225 7300

16 December 2015

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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