Final Results
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
CHAIRMAN'S STATEMENT
After the rapid contraction of 2008-9, the UK economy managed to pull out of recession in 2010. More importantly, strong growth in the world economy has led to a resurgence in international trade benefiting export-orientated companies.
The stock market had a quieter year with a rise of 12.1% in the FTSE All-share Index with a slightly better performance by smaller cap indices.
Your Trust experienced a strong finish to the year. The net asset value of capital shares rose from 2158.5p to 3105.7p and that of the income shares from 549.3p to 752.9p. These are increases of 43.9% and 37.1% respectively.
Discretionary Unit Fund Managers achieved modest progress with pre-tax profits of over £200,000. Again there was a major contribution from stock profits which will not necessarily be repeated.
After the difficult circumstances of the last two years, your Directors have been able to maintain dividends at 25.5p per income share and 1.275p per capital share. Additionally, the supplementary capital dividend of 68.6829p per capital share was paid on 2nd January, 2011 and barring unforeseen circumstances, will be maintained at 68.6829p per capital share payable on 2nd January, 2012.
In accordance with the established practice, your Directors have reviewed the performance of the Trust over the last five years: The performance of shareholders funds shows a rise of 4.4% compared with a rise of 8.7% by the FTSE All-share index. In addition, the dividend of the income shares has not matched inflation. For the first time the Trust has not met its criteria during a five year period but the circumstances of the world banking crisis fully explains why this happened. Taking this into account as well as the long-term performance of the Trust, your Directors therefore recommend that the life of the Trust should be extended by a further five years. It is also intended to modify the income criterion to maintain the income dividend over the period. This change reflects recent experience and the unique income demands of the respective class rights of the Trust.
Lastly, this is my first statement as Chairman and I would like to thank my predecessor, Simon Knott, for his contribution over the last three decades. During his time as chairman, shareholders funds rose from £3m to £70m and the Trust is in a strong position to meet the challenges of the future.
D. M. BRAMWELL
Chairman
You can view or download copies of the Half Year and Annual reports from our website at www.rightsandissues.co.uk.
They are to be posted to shareholders and are available at the registered office of the Company.
Risks and uncertainties
Cautionary statement
This report contains forward-looking statements that involve risk and uncertainty. These have been made by the directors in good faith based on the information available to them at the time of their approval of this report. Due to the inherent uncertainties, including stock market risk factor, actual results may differ materially from those expressed or implied by these forward-looking statements.
Further information on the principal long-term risks and uncertainties of the Trust is included in the annual report.
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the annual report and accounts in accordance with applicable United Kingdom law and International Financial Reporting Standards (IFRS) as adopted by the European Union.
The Directors are required to prepare the accounts for each financial year which present fairly the financial position of the Group and the financial performance and cashflows of the Company and the Group for that period. In preparing those Accounts the Directors are required to:
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select suitable accounting policies and then apply them consistently; |
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· |
make judgements and estimates that are reasonable and prudent; |
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· |
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; |
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· |
provide additional disclosures when compliance with the specific requirements of IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the group's financial position and financial performance; |
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· |
state that the Company has complied with IFRS subject to any material departures disclosed and explained in the accounts; and |
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the Accounts comply with the Companies Act 2006 and Article 4 of the IAS regulation. 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.
Under applicable law and regulations, the Directors are also responsible for preparing a Directors' Report, Directors' Remuneration Report and the Corporate Governance Statement that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Visitors to the website need to be aware that legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The directors confirm that to the best of their knowledge that:
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· |
the accounts, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the group; and |
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the annual 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 they face. |
D. M. Bramwell, Director
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S. J. B. Knott, Director |
22nd February, 2011 |
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
CONSOLIDATED INCOME STATEMENT
for the year ended 31st December, 2010
|
|
|
|
Year ended 31st December, 2010 |
|
Year ended 31st December, 2009 |
||||||||
|
|
Notes |
|
Revenue |
|
Capital |
|
Total |
|
Revenue |
|
Capital |
|
Total |
|
|
|
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
Investment income |
2 |
|
1,724,112 |
|
- |
|
1,724,112 |
|
1,337,008 |
|
- |
|
1,337,008 |
|
Other operating income |
2 |
|
256,115 |
|
- |
|
256,115 |
|
238,092 |
|
- |
|
238,092 |
|
Total income |
|
|
1,980,227 |
|
- |
|
1,980,227 |
|
1,575,100 |
|
- |
|
1,575,100 |
|
Gains/(Losses) on fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
through profit or loss assets |
10 |
|
159,456 |
|
20,721,113 |
|
20,880,569 |
|
88,079 |
|
11,299,776 |
|
11,387,855 |
|
|
|
|
2,139,683 |
|
20,721,113 |
|
22,860,796 |
|
1,663,179 |
|
11,299,776 |
|
12,962,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management fee |
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Other expenses |
3 |
|
531,960 |
|
- |
|
531,960 |
|
502,147 |
|
- |
|
502,147 |
|
|
|
|
531,960 |
|
- |
|
531,960 |
|
502,147 |
|
- |
|
502,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
1,607,723 |
|
20,721,113 |
|
22,328,836 |
|
1,161,032 |
|
11,299,776 |
|
12,460,808 |
|
Tax |
5 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Profit for the period |
|
|
1,607,723 |
|
20,721,113 |
|
22,328,836 |
|
1,161,032 |
|
11,299,776 |
|
12,460,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return per income share (p) |
7 |
|
18.5p |
|
210.6p |
|
229.1p |
|
0.9p |
|
114.8p |
|
115.7p |
|
Return per capital share (p) |
7 |
|
69.6p |
|
947.6p |
|
1017.2p |
|
68.7p |
|
516.8p |
|
585.5p |
The total column of this statement represents the Group's Income Statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations.
All income is attributable to the equity holders of the parent company. There are no minority interests.
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
CONSOLIDATED BALANCE SHEET
as at 31st December, 2010
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Company |
|
|
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Group |
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|
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Notes |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
|
|
£ |
|
£ |
|
£ |
|
£ |
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
8 |
|
- |
|
- |
|
65,191 |
|
65,191 |
|
Investments - Fair value through |
|
|
|
|
|
|
|
|
|
|
|
profit or loss |
|
10 |
|
62,861,280 |
|
44,425,529 |
|
62,429,808 |
|
43,994,057 |
|
|
|
|
|
62,861,280 |
|
44,425,529 |
|
62,494,999 |
|
44,059,248 |
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
Trading investments |
|
|
|
- |
|
- |
|
650,233 |
|
498,578 |
|
Trade and other receivables |
|
14 |
|
310,904 |
|
238,011 |
|
400,967 |
|
244,640 |
|
Current tax receivable |
|
|
|
49,610 |
|
29,291 |
|
- |
|
- |
|
Amounts due from group undertakings |
|
|
|
1,191,706 |
|
949,329 |
|
- |
|
- |
|
Cash and cash equivalents |
|
|
|
5,433,124 |
|
3,630,674 |
|
6,386,189 |
|
4,470,403 |
|
|
|
|
|
6,985,344 |
|
4,847,305 |
|
7,437,389 |
|
5,213,621 |
|
Total assets |
|
|
|
69,846,624 |
|
49,272,834 |
|
69,932,388 |
|
49,272,869 |
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
15 |
|
71,159 |
|
40,595 |
|
278,019 |
|
161,726 |
|
Current tax payable |
|
|
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
71,159 |
|
40,595 |
|
278,019 |
|
161,726 |
|
Total assets less current liabilities |
|
|
|
69,775,465 |
|
49,232,239 |
|
69,654,369 |
|
49,111,143 |
|
Net assets |
|
|
|
69,775,465 |
|
49,232,239 |
|
69,654,369 |
|
49,111,143 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
Called up share capital |
|
16 |
|
1,225,000 |
|
1,225,000 |
|
1,225,000 |
|
1,225,000 |
|
Share premium account |
|
17 |
|
225,326 |
|
225,326 |
|
225,326 |
|
225,326 |
|
Retained reserves: |
|
|
|
|
|
|
|
|
|
|
|
Capital reserve |
|
17 |
|
39,952,082 |
|
37,150,280 |
|
39,952,082 |
|
37,150,280 |
|
Revaluation reserve |
|
17 |
|
27,136,454 |
|
9,217,143 |
|
27,136,454 |
|
9,217,143 |
|
Dividend equalisation reserve |
|
17 |
|
1,236,603 |
|
1,414,490 |
|
1,115,507 |
|
1,293,394 |
|
Total equity |
|
|
|
69,775,465 |
|
49,232,239 |
|
69,654,369 |
|
49,111,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share |
|
|
|
|
|
|
|
|
|
|
|
Income shares |
|
|
|
|
|
|
|
752.9p |
|
549.3p |
|
Capital shares |
|
|
|
|
|
|
|
3105.7p |
|
2158.5p |
The financial statements were approved by the board and authorised for issue on 22nd February 2011. They were signed on its behalf by:
D.M.Bramwell, Director
S. J. B. Knott, Director
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31st December, 2010
|
|
|
|
|
Share |
|
|
|
|
|
Dividend |
|
|
|
|
|
Share |
|
premium |
|
Capital |
|
Revaluation |
|
equalisation |
|
|
|
|
|
capital |
|
account |
|
reserve |
|
reserve |
|
reserve |
|
Total |
|
|
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
Balance at 31st December, 2008 |
|
1,225,000 |
|
225,326 |
|
40,751,585 |
|
(5,683,938) |
|
1,924,122 |
|
38,442,095 |
|
Changes in equity for 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) for the period |
|
- |
|
- |
|
(3,601,305) |
|
14,901,081 |
|
1,161,032 |
|
12,460,808 |
|
Total recognised income and expense |
|
1,225,000 |
|
225,326 |
|
37,150,280 |
|
9,217,143 |
|
3,085,154 |
|
50,902,903 |
|
Dividends |
|
- |
|
- |
|
- |
|
- |
|
(1,791,760) |
|
(1,791,760) |
|
Balance at 31st December, 2009 |
|
1,225,000 |
|
225,326 |
|
37,150,280 |
|
9,217,143 |
|
1,293,394 |
|
49,111,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in equity for 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) for the period |
|
- |
|
- |
|
2,801,802 |
|
17,919,311 |
|
1,607,723 |
|
22,328,836 |
|
Total recognised income and expense |
|
1,225,000 |
|
225,326 |
|
39,952,082 |
|
27,136,454 |
|
2,901,117 |
|
71,439,979 |
|
Dividends |
|
- |
|
- |
|
- |
|
- |
|
(1,785,610) |
|
(1,785,610) |
|
Balance at 31st December, 2010 |
|
1,225,000 |
|
225,326 |
|
39,952,082 |
|
27,136,454 |
|
1,115,507 |
|
69,654,369 |
COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 31st December, 2010
|
|
|
|
|
Share |
|
|
|
|
|
Dividend |
|
|
|
|
|
Share |
|
premium |
|
Capital |
|
Revaluation |
|
equalisation |
|
|
|
|
|
capital |
|
account |
|
reserve |
|
reserve |
|
reserve |
|
Total |
|
|
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
Balance at 31st December, 2008 |
|
1,225,000 |
|
225,326 |
|
40,751,585 |
|
(5,683,938) |
|
2,045,218 |
|
38,563,191 |
|
Changes in equity for 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
|
- |
|
(3,601,305) |
|
14,901,081 |
|
1,161,032 |
|
12,460,808 |
|
Total recognised income and expense |
|
1,225,000 |
|
225,326 |
|
37,150,280 |
|
9,217,143 |
|
3,206,250 |
|
51,023,999 |
|
Dividends |
|
- |
|
- |
|
- |
|
- |
|
(1,791,760) |
|
(1,791,760) |
|
Balance at 31st December, 2009 |
|
1,225,000 |
|
225,326 |
|
37,150,280 |
|
9,217,143 |
|
1,414,490 |
|
49,232,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in equity for 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
- |
|
- |
|
2,801,802 |
|
17,919,311 |
|
1,607,723 |
|
22,328,836 |
|
Total recognised income and expense |
|
1,225,000 |
|
225,326 |
|
39,952,082 |
|
27,136,454 |
|
3,022,213 |
|
71,561,075 |
|
Dividends |
|
- |
|
- |
|
- |
|
- |
|
(1,785,610) |
|
(1,785,610) |
|
Balance at 31st December, 2010 |
|
1,225,000 |
|
225,326 |
|
39,952,082 |
|
27,136,454 |
|
1,236,603 |
|
69,775,465 |
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
CASH FLOW STATEMENT
for the year ended 31st December, 2010
|
|
|
|
|
|
|
Company |
|
|
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
Notes |
|
£ |
|
£ |
|
£ |
|
£ |
|
Cashflows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Profit before tax |
|
|
|
22,279,226 |
|
12,431,517 |
|
22,328,836 |
|
12,460,808 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Losses/(Gains) on investments |
|
|
|
(20,721,113) |
|
(11,299,776) |
|
(20,721,113) |
|
(11,299,776) |
|
Purchases of investments |
|
|
|
(5,426,717) |
|
(5,202,296) |
|
(5,426,717) |
|
(5,202,296) |
|
Proceeds on disposal of investments |
|
19 |
|
7,712,079 |
|
7,490,291 |
|
7,712,079 |
|
7,490,291 |
|
Movement in trading investments |
|
19 |
|
- |
|
- |
|
(151,655) |
|
(78,972) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows before movements |
|
|
|
|
|
|
|
|
|
|
|
in working capital |
|
|
|
3,843,475 |
|
3,419,736 |
|
3,741,430 |
|
3,370,055 |
|
Decrease/(increase) in receivables |
|
|
|
(315,270) |
|
(198,355) |
|
(156,327) |
|
(33,087) |
|
Increase/(decrease) in payables |
|
|
|
30,564 |
|
(3,082) |
|
116,293 |
|
(106,039) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from operating activities before income taxes |
|
|
|
3,558,769 |
|
3,218,299 |
|
3,701,396 |
|
3,230,929 |
|
Income taxes received/(paid) |
|
|
|
29,291 |
|
1,648 |
|
- |
|
- |
|
Net cash from operating activities |
|
|
|
3,588,060 |
|
3,219,947 |
|
3,701,396 |
|
3,230,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
|
(1,785,610) |
|
(1,791,760) |
|
(1,785,610) |
|
(1,791,760) |
|
Net cash (used in)/from financing activities |
|
|
|
(1,785,610) |
|
(1,791,760) |
|
(1,785,610) |
|
(1,791,760) |
|
Net increase/(decrease) in cash and cash equivalents |
|
|
|
1,802,450 |
|
1,428,187 |
|
1,915,786 |
|
1,439,169 |
|
Cash and cash equivalents at beginning of year |
|
|
|
3,630,674 |
|
2,202,487 |
|
4,470,403 |
|
3,031,234 |
|
Cash and cash equivalents at end of year |
|
|
|
5,433,124 |
|
3,630,674 |
|
6,386,189 |
|
4,470,403 |
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
Notes:
1. The figures set out above are derived from the audited consolidated accounts of Rights and Issues Investment Trust Plc and its subsidiaries for the years ended 31 December 2009 and 31 December 2010. The 2010 accounts will be sent to shareholders shortly.
2. The financial information contained in this announcement does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. The 2010 accounts, on which the report of the auditors is unqualified, will be filed with the Registrar of Companies in due course. The audited accounts for the year ended 31 December 2009 on which the report of the auditors contained no qualification or statement under either Section 498(2),(3)or (4) of the Companies Act 2006, have been filed with the Registrar of Companies.
3. DIVIDENDS AND OTHER APPROPRIATIONS
Amounts recognised as distributions to equity holders in the period:
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
p |
|
p |
|
£ |
|
£ |
|
Income |
|
|
|
|
|
|
|
|
|
Final dividend for the year ended 31st December, 2009 |
|
17.00 |
|
17.00 |
|
418,200 |
|
418,200 |
|
Interim dividend for the year ended 31st December, 2010 |
|
8.50 |
|
8.50 |
|
209,100 |
|
209,100 |
|
Capital |
|
|
|
|
|
|
|
|
|
Final dividend for the year ended 31st December, 2009 |
|
1.2750 |
|
1.6500 |
|
20,910 |
|
27,060 |
|
Supp cap dividend for the year ended 31st December, 2010 |
|
68.6829 |
|
68.6829 |
|
1,126,400 |
|
1,126,400 |
|
|
|
|
|
|
|
1,774,610 |
|
1,780,760 |
|
Dividends on non-equity shares: |
|
|
|
|
|
|
|
|
|
Cumulative preference |
|
5.5% |
|
5.5% |
|
11,000 |
|
11,000 |
The Articles provide for a supplementary Dividend to Capital Shareholders to be paid not only in respect of future potential Preference Share issues which are not made, but also the 20,480,000 Preference Shares which could have been issued following the increases in the Capital Reserve revealed by the accounts since 1981.
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
p |
|
p |
|
£ |
|
£ |
|
Income |
|
|
|
|
|
|
|
|
|
Proposed final dividend for the year ended 31st December, 2010 |
|
17.00 |
|
17.00 |
|
418,200 |
|
418,200 |
|
Capital |
|
|
|
|
|
|
|
|
|
Proposed final dividend for the year ended 31st December, 2010 |
|
1.2750 |
|
1.2750 |
|
20,910 |
|
20,910 |
The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
RIGHTS AND ISSUES INVESTMENT TRUST PUBLIC LIMITED COMPANY
NOTES TO THE ACCOUNTS continued
for the year ended 31st December, 2010
3. DIVIDENDS AND OTHER APPROPRIATIONS (continued)
We also set out below the total dividend payable in respect of the financial year, which is the basis on which the requirements of Section 1158 Corporation Tax Act 2010 are considered.
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
p |
|
p |
|
£ |
|
£ |
Dividends on equity shares |
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
|
Interim dividend for the year ended 31st December, 2010 |
|
8.50 |
|
8.50 |
|
209,100 |
|
209,100 |
|
Proposed final dividend for the year ended 31st December, 2010 |
|
17.00 |
|
17.00 |
|
418,200 |
|
418,200 |
|
|
|
25.50 |
|
25.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
|
|
|
Supp cap dividend for the year ended 31st December, 2010 |
|
68.6829 |
|
68.6829 |
|
1,126,400 |
|
1,126,400 |
|
Proposed final dividend for the year ended 31st December, 2010 |
|
1.2750 |
|
1.2750 |
|
20,910 |
|
20,910 |
|
|
|
69.9579 |
|
69.9579 |
|
1,774,610 |
|
1,774,610 |
This information is provided by RNS