Half Yearly Report

RNS Number : 8850X

Utilico Investments Limited

22 February 2012

 



Date:                21 February 2012

Contact:           Charles Jillings                                              

                        Utilico Investments Limited                             

                        01372 271 486                                               

Utilico Investments Limited

Unaudited Statement of Results

for the six months to 31 December 2011

Financial Highlights

·      Net asset value total return per ordinary share of 15.3% in the six months to 31 December 2011

·      Portfolio gains of £27.7m

·      Revenue earnings per share rose to 6.54p (December 2010: 3.92p)

·      Interim dividend of 3.50p up from 3.25p last half year

CHAIRMAN'S STATEMENT

I am very pleased to report that Utilico Investments Limited ("Utilico" or "the Company") achieved a total return per ordinary share of 15.3% in the six months to 31 December 2011. This is an excellent performance in challenging markets and substantially ahead of the FTSE All-Share Index, which declined 6.2% over the six months.

Since August 2003 Utilico's net asset value ("NAV") per ordinary share plus cumulative dividends of 24.95p has increased 155.6%, resulting in an average annual compound total return per ordinary share of 12.3%. The FTSE All-Share Total Return Index achieved 7.5% compound annual growth during the same period. The increase in Utilico's NAV over the six months under review was driven by continued gains on the portfolio, which amounted to £27.7m at 31 December 2011.

While these have been difficult times for investors, the asset and funding profile of Utilico has been good. Over the last three years the investment manager, ICM Limited ("ICM"), has followed its strong convictions on the recovery of Resolute Mining Limited ("Resolute"), emerging markets, by way of the Company's investment in Utilico Emerging Markets Limited ("UEM"), and Infratil Limited ("Infratil"). These assets are all benefitting from recovery, growth and stability respectively. This growth has been leveraged by the zero dividend preference ("ZDP") shares. The Company's strategy of being long gold, emerging markets, Australia and New Zealand and short Sterling has, to date, proved right.

Much of the portfolio gains, of £27.7m, have been driven by Resolute. ICM's view is that the increase in share price is due partly to recovery and partly to the strength in gold prices. Today the investment manager's firm belief is that Resolute's share price remains on the recovery path.

Clearly a stronger gold price and increased reserves will deliver a higher valuation. This has resulted in rising concentration in the portfolio as Resolute's performance outstrips that of UEM and Infratil. Resolute is the largest holding in the portfolio at £136.2m and this concentration is expected to continue.

The decision was taken to reduce the investment in Infratil which had risen to 25.7% of Utilico's portfolio as at 30 June 2011 and the investment manager placed out 22.1% of the shareholding before the period end and has agreed to sell an additional 5.0m shares at NZ$1.85 per share on 31 March 2012. At 31 December 2011, Utilico's holding in Infratil, including the 5.0m shares held for sale, represents 19.4% of the portfolio. Utilico's new investments have continued to remain modest over the six months.

The revenue income has risen strongly to £8.5m as a result of dividend distributions from our unlisted transport ticketing related investments. This, together with reduced funding costs, has resulted in the revenue earnings per share ("EPS") rising to 6.54p in the six months to 31 December 2011 on a year on year basis (December 2010: 3.92p). The Directors have decided to declare an interim dividend of 3.50p, up from 3.25p last half year. The revenue reserves carried forward are 9.38p per ordinary share (the liability for the declared interim dividend is not included).

The redemption date for the 2012 ZDP shares is 31 October 2012. In December 2011 Utilico Finance Limited, the 100% owned subisidiary of Utilico, announced proposals to offer the holders of these 2012 ZDP shares the opportunity to elect to roll part of their investment into new 2018 ZDP shares. This offer closed on 13 January 2012 with 6.1m 2012 ZDP shares electing to roll into the 2018 ZDP shares. The 39.3m 2012 ZDP shares not rolled over will be redeemed on their redemption date for cash. To provide funds for this redemption the Company issued £11.9m 2018 ZDP shares for cash with new investors. In addition, the Company is proposing to place out up to a further 10.0m 2014 ZDP shares and 10.0m 2016 ZDP shares and up to 27.6m 2018 ZDP shares to raise cash in advance of the redemption. Details of these proposals were set out in a prospectus which can be found on Utilico's website.

The Board, in consultation with ICM, has supported the move to transfer the company secretarial function to ICM and I am delighted that Amanda Marsh has joined the ICM Group and will perform the role of company secretary from April 2012. F&C Management Limited will continue to be our valued service provider in regards to execution, settlement, accounting and record keeping. They continue to offer an outstanding service to Utilico, the Board and ICM.

I am delighted to have been asked by my fellow Board members to assume the Chairmanship and I look forward to this opportunity. I would like to thank the Board for their contributions and valued input over recent difficult markets.

On behalf of the Board, I must thank Michael Collier for his support, enthusiasm and guidance as Chairman of Utilico, under which Utilico has made significant progress. We are all pleased Michael is continuing as a Director.

It is with deep sadness I report that Lloyd Morrison passed away earlier this month. Lloyd was the inspirational founder of Infratil and over the last two decades created a world class New Zealand based investment fund. Infratil has been an outstanding investment for our group over the last 17 years, and I expect this outperformance to continue with the current management team. He was a friend and advisor to many including Utilico. His leadership, drive, and encouragement will be missed by all of us.

Most of our investee companies continue to make good progress with improving results. The economic challenges which we have outlined over the last three years remain a deep concern. A number of developed markets remain overleveraged both at a bank and sovereign level with artificially low interest rates, weakening economic activity and high political and central bank intervention. However, our portfolio looks well positioned to meet these challenges and deliver value longer term.

Dr R Urwin
21 February 2012

INVESTMENT manager's REPORT

Utilico has performed well in the six months to December 2011 with a positive total return of 15.3%, outperforming the FTSE All-Share Index total return which was negative 6.2% over the same period. The average annual compound return since inception is 12.3%.

Portfolio

The top ten investments on a look through basis have seen changes as a result of both strong performance and investment and disposals in the underlying portfolio. Resolute continues to be our largest investment at £136.2m both on an absolute basis and on a look through basis. Malaysia Airports Holdings Berhad ("Malaysia Airport") re-entered the top ten replacing Ocean Wilsons Holdings Limited ("Ocean Wilson") due to UEM substantially reducing its holding in Ocean Wilson. Both of these investments are held via Utilico's investment in UEM.

Resolute has made significant progress in its recovery in the six months, the last step being the conversion of the 12% Convertible Loan Notes and exercise of options on 31 December 2011. As a result Resolute ended the six months largely ungeared (debt was A$11.0m and cash and bullion were A$71.0m), unhedged and a leading independent producer of gold. In the quarter to 31 December 2011 Resolute produced 95,668 ounces of gold at a cash cost of A$777/oz. In the year to 30 June 2012 Resolute has forecast production of up to 410,000 ounces at an average cash cost of A$730/oz, up from 330,000 ounces at a cash cost of A$908/oz last year.

In December 2011 Utilico converted its Resolute options and its Convertible Loan Notes into Resolute ordinary shares and ended the year with a holding of 125.9m ordinary shares representing 19.1% of Resolute's ordinary share capital. Resolute's ordinary share price increased by 42.0% over the six months. Overall Utilico's leveraged holding increased 50.7% to £136.2m during the six months.

While the operational and structural transformation at Resolute has largely been completed, we believe the year end share price of A$1.64 has not truly reflected this achievement.

Infratil (which holds the investment in TrustPower, Wellington Airport, Infratil Energy Australia and Z Energy) held up well in weak markets, gaining 5.5% over the six months to 31 December 2011 on a total return basis. In addition the company increased its interim dividend by 20%. During the six months we realised £23.4m from the sale of ordinary shares. The value of Utilico's investment has reduced by £22.0m as a result of the disposal offset in part by the price increase.

In the six months from June to December 2011 Infratil refinanced all its 2011 and 2012 bond maturities and renewed its bank facility. The company reaffirmed its 2012 earnings guidance and raised projections around the operating cash flows for the year. This is testament to the good positioning of the companies' underlying assets even though the economies in which the businesses operate showed very low growth.

It is good to see Infratil's management team substantially increase their investment in Infratil. The management team participated in Utilico's placement and increased their equity interest to 10.3%. It is also pleasing to see Infratil buy back shares in the current environment.

UEM performed well in weak emerging markets. Its NAV per share decreased by 13.0% to 159.04p versus the MSCI Emerging Markets Index which declined 16.3% (Sterling adjusted). UEM's portfolio and strategy remained broadly unchanged over the six months. UEM migrated to the official list at the London Stock Exchange, from the Alternative Investment Market ("AIM"), on 14 October 2011. As a result UEM saw a narrowing of its discount.

TrustPower Limited ("TPW") saw improved results, recording an 18% increase in like for like earnings in the six month period to September 2011. TrustPower's recent investments in wind energy have perhaps made the company's earnings more variable than they have been historically, and the results benefited from a return to more normal wind speeds after a poor 2010. The company has continued to make progress in developing new renewable generation assets in both New Zealand and Australia. In the six months to December 2011, TPW's share price fell by 1.8%. Again, it is pleasing to see TPW buying back shares.

Vix Technology Pty Ltd ("Vix") continues to make progress. In the year to 30 June 2011 the core group of companies within Vix reported turnover of A$165.0m and an EBITDA of A$8.7m. During the period Vix returned £0.8m to Utilico while £3.3m was advanced in new loans to Vix.

Bermuda Commercial Bank Limited ("BCB") continues to make progress. For the year to 30 September 2011 BCB reported a profit before tax of BD$2.6m, up from $1.2m on total assets which increased by BD$122.3m to BD$532.0m from BD$409.7m in 2010. BCB's capital ratio of 27.1% remains more than double the Bank of International Settlement's target of 12.0% and is also substantially ahead of proposed Basel III capital levels.

Jersey Electricity plc ("JEL") reported results for the year to September 2011 which were in line with the previous year. This is disappointing as the company benefitted from stable electricity prices in France, from where the company imports 97.0% of its electricity requirements.We remain frustrated that the company is unable to maintain a fair pricing tension and therefore a fair return on assets and profitability. Their customer tariffs were reduced by 5.0% compared to the prior year, despite continuing capex investment. Capex in the twelve months of £15.0m, outstripped depreciation of £8.2m. We welcome the dividend increase of 4.9% to 10.75p. JEL's share price fell by 3.6% in the six months to December 2011.

Infratil Energy Australia Pty Ltd ("IAE") is Infratil's Australian energy business and consists of peak load generation assets and an energy retailing business, Lumo Energy. The business reported revenue growth of 9.0% over the six months to September 2011 due to the growing customer base at Lumo and Perth Energy, plus the new 120MW generation plant at Kwinana.

Renewable Energy Generation Limited ("REG") Over the six months to December 2011, REG has announced two further projects which help underpin near term growth. Projects have been acquired in Northern Ireland (4 MW), and planning permission has been received on a reasonably sized site in Cornwall (10MW). The company is about to embark upon construction of the Sancton Hill site in Yorkshire (10MW), and the South Sharpley site in County Durham (6MW). The UK Government has pared back the amount of subsidy which can be claimed by on-shore wind turbines; however, this is offset by the continued fall in capital costs. Longer term, REG is well positioned to take advantage of any increase in UK wholesale electricity prices which may occur as existing nuclear power stations are de-commissioned, and some older coal plants are also closed as a result of EU emissions rules. REG's share price increased by 6.7% in the six months to December 2011.

Z Energy Limited is Infratil's 50% owned joint venture with the New Zealand Superannuation Fund, set up to purchase and operate Shell NZ's downstream New Zealand business, including 220 service stations, refining, port infrastructure, and pipelines. 2010 was the first year of Infratil's ownership of this business and in the half year to September 2011 Z Energy is reported to be outperforming the industry despite poor trading conditions over the last six months, in terms of volume and market share. Z Energy has made significant progress on a number of key strategic initiatives and opportunities for further enhancement continue to be identified.

Malaysia Airports Holdings Berhad ("MAHB") is the sole operator and manager of Malaysia's 39 airports, the largest of which is Kuala Lumpur International Airport ("KLIA"). Over the financial year to September 2011 the company produced another solid set of results, with passenger growth of 12.0% and revenue growth of 7.0%. During the period, MAHB also announced that the construction of its new KLIA2 terminal at KL Airport, the world's largest purpose built terminal for low cost carriers, enabling it to hand up to 45 million passengers and capitalise on the non-aeronautical revenues generated from passengers passing through, will be completed by April 2013. The new terminal will be a long term value driver for the stock. Over the period the share price decreased 11.1%.

Wellington International Airport Ltd ("Wellington") saw a decrease in passenger numbers of 1.4% in the interim six month period to September 2011, as traffic numbers were affected by the Chilean volcanic dust cloud which reduced its services in June. The airport however was recognised as the best airport in Australasia at the 2011 World Travel Awards and should see an improvement in passenger numbers in the latter half of 2011 on the back of the international surge associated with the Rugby World Cup.

During the six months Utilico invested £16.3m, of which the biggest investment was £6.0m on the exercise of Resolute Options, and realised £25.9m, the majority of which was the sale of Infratil ordinary shares realising £23.4m.

As a result of Resolute's continued strength the top ten has become more concentrated and has risen from 61.0% to 65.1% of the total investments.

The geographic and sectoral weightings have remained broadly in line with the position at June 2011 with the exception of Gold Mining which increased from 22% to 32% both geographically and sectorally as a result of the strong performance of Resolute together with the exercise of Utilico's Resolute options position. Further, New Zealand has reduced from 21% to 14% as a result of the reduction of the Infratil holding.

Bank Debt

Bank debt decreased from £30.9m to £17.9m. This reflects part utilisation of the £30.0m bank facility. As at 31 December 2011 this was drawn in New Zealand Dollars and Sterling.

Hedging

Having reduced the market hedge position to nil in September 2011, the position was modestly re-established in the last two months of 2011. At 31 December 2011 the investment in the hedge was £2.9m.

Utilico has maintained currency hedges to partially protect the Sterling value of certain investments. At the period end, forward currency sale contracts were in place for a nominal NZ$55.4m, €11.9m and A$11.3m. This level of protection reflects the investment manager's view that Sterling is likely to be stronger rather than weaker against certain currencies of Utilico's investments.

Revenue Return

The total income is up significantly in the six months to 31 December 2011 compared to the prior year, mainly as a result of dividend income from Utilico's unlisted transport ticketing investments. Management and administration fees increased as a result of higher gross assets. Finance costs were significantly reduced due to lower debt and reduced margins. The combined effect of the above resulted in the revenue EPS rising 66.8% to 6.54p.

Capital Return

Capital returns recorded a further gain of £24.4m due mostly to gains on investments of £27.7m. Gains on derivatives and exchange rates partly reversed the losses in the previous period. Finance costs were up marginally as the ZDP Shares' accumulated capital base increased. The resulting EPS on the capital return was 24.4p.

Expense Ratio

Utilico's total expenses excluding finance costs and taxation were £1.4m. This represents an annualised TER of 0.6%, marginally down on the prior year.

DIRECTORS' STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES

The Group's assets consist mainly of quoted equity securities and its principal risks are therefore market related. The large number of investments held, together with the geographic and sector diversity of the portfolio, enables the Company to spread its risk with regard to liquidity, market volatility, currency movements and revenue streams. 

Other key risks faced by the Group relate to investment strategy, external events, management and resources, regulatory issues, operational matters, financial controls and loan covenant compliance.

These risks, and the way in which they are managed, are described in more detail under the heading "Principal risks and risk mitigation" within the Report of the Directors contained within the Group's Report and Accounts for the year ended 30 June 2011. The Group's principal risks and uncertainties have not changed materially since the date of that report. The Annual Report and Accounts is published on the Company's website, www.utilico.bm.

DIRECTOR'S STATEMENT OF RESPONSIBILITIES

In accordance with Chapter 4.2 of the Disclosure and Transparency Rules the Directors confirm that to the best of their knowledge:

i)       the condensed set of financial statements has been prepared in accordance with applicable International Accounting Standards and gives a true and fair view of the assets, liabilities, financial position and return of the Group;

ii)       the Chairman's Statement and Investment Manager's Report (constituting the Interim Report) includes a fair review of the important events that have occurred in the six months to 31 December 2011 and their impact on the condensed set of financial statements;

iii)      the Directors' Statement of Principal Risks and Uncertainties shown above is a fair review of the principal risks and uncertainties for the remainder of the financial year; and

iv)      the condensed set of financial statements include a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Company during the period, and any changes in the related party transactions described in the last Annual Report that could do so.

The financial statements are published on the Company's website, www.utilico.bm, the maintenance and integrity of which is the responsibility of the Company.

Signed on behalf of the Board

Dr R Urwin

Chairman

21 February 2012

UNAUDITED CONSOLIDATED PERFORMANCE SUMMARY

	31 December 2011		30 June 2011		Change
Ordinary shares
Total return	15.3%(1)		24.2%		n/a
Annual compound total return since inception	12.3%		11.2%		n/a
Net asset value per ordinary share	229.29p		201.63p		13.7%
Share prices and indices
Ordinary share price	159.00p		147.25p		8.0%
Discount	30.7%		27.0%		n/a
FTSE All-share Index total return	3,970		4,233		(6.2%)
Zero dividend preference (ZDP) shares (2)
2012 ZDP shares
Capital entitlement per ZDP share	167.77p		162.15p		3.5%
ZDP share price	172.25p		168.50p		2.2%
2014 ZDP shares
Capital entitlement per ZDP share	137.45p		132.69p		3.6%
ZDP share price	147.87p		142.75p		3.6%
2016 ZDP shares
Capital entitlement per ZDP share	137.45p		132.69p		3.6%
ZDP share price	147.25p		133.50p		10.3%
Warrants
2012 warrant price	0.55p		0.55p		-%
Equity holders funds (£m)
Gross assets (3)	427.2		408.7		4.5%
Bank debt	17.9		30.9		(42.1%)
ZDP debt	178.9		172.8		3.6%
Other debt	1.3		3.5		(62.9%)
Equity holders' funds	229.1		201.5		13.7%
Financial ratios of the Group (4)
Revenue yield on average Gross Assets	4.1%		3.1%		n/a
Total expense ratio (5) on average Gross Assets	0.7%		0.8%		n/a
Bank loans, other loans and ZDP shares gearing on Gross Assets	46.4%		50.7%		n/a
		Six months to		Six months to
Returns and dividends		31 Dec 11		31 Dec 10
Revenue return per ordinary share (undiluted)		6.54p		3.92p
Capital return per ordinary share (undiluted)		24.38p		67.24p
Total return per ordinary share (undiluted)		30.92p		71.16p
Dividend per ordinary share		3.50p(6)		5.00p(7)

(1)  For the six months to 31 December 2011

(2)  Issued by Utilico Finance Limited, a wholly owned subsidiary of Utilico Investments Limited, in June 2007. 2012 ZDP shares previously issued by Utilico Investment Trust plc.

(3)  Gross assets less current liabilities excluding loans.

(4)  For comparative purposes the total expense and revenue figures have been annualised.

(5)  Excluding performance fee.

(6) The interim dividend declared has not been included as a liability in these accounts.

(7) 3.25p interim dividend plus 1.75p special dividend.

UNAUDITED CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME

for the six months to 31 December			2011			2010
	Revenue	Capital	Total	Revenue	Capital	Total
	return	return	return	return	return	return
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Gains on investments	-	27,680	27,680	-	74,783	74,783
Gains/(losses) on derivative instruments	-	2,502	2,502	-	(9,679)	(9,679)
Gains/(losses) on foreign exchange	-	353	353	22	(1,311)	(1,289)
Investment and other income	8,511	-	8,511	6,003	43	6,046
Total income	8,511	30,535	39,046	6,025	63,836	69,861
Management and administration fees	(962)	-	(962)	(871)	-	(871)
Other expenses	(395)	(1)	(396)	(444)	(5)	(449)
Profit before finance costs and taxation	7,154	30,534	37,688	4,710	63,831	68,541
Finance costs	(616)	(6,173)	(6,789)	(1,082)	(5,754)	(6,836)
Profit before taxation	6,538	24,361	30,899	3,628	58,077	61,705
Taxation	(4)	-	(4)	(241)	-	(241)
Profit for the period	6,534	24,361	30,895	3,387	58,077	61,464
Earnings per ordinary share (basic) - pence	6.54	24.38	30.92	3.92	67.24	71.16
Earnings per ordinary share (diluted) - pence	6.54	24.38	30.92	3.92	67.24	71.16

The total column of this statement represents the Group's Condensed Income Statement and the Group's Condensed Statement of Comprehensive Income, prepared in accordance with IFRS.

The supplementary revenue returns and capital returns are prepared under guidance published by the Association of Investment Companies in the UK.

The Group does not have any income or expense that is not included in the profit for the period, and therefore the 'profit for the period' is also the 'total comprehensive income for the period', as defined in International Accounting Standard 1 (revised).

All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of the Company. There are no minority interests.

UNAUDITED CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY

for the six months to 31 December 2011
	Ordinary	Share			Non-
	share	premium	Special	Warrant	distributable	Capital	Revenue
	capital	account	Reserve	reserve	reserve	reserves	reserve	Total
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Balance at 30 June 2011	9,993	30,250	233,866	3,049	32,069	(113,833)	6,083	201,477
Profit for the period	-	-	-	-	-	24,361	6,534	30,895
Ordinary dividends paid	-	-	-	-	-	-	(3,248)	(3,248)
Conversion of warrants	-	1	-	-	-	-	-	1
Balance at 31 December 2011	9,993	30,251	233,866	3,049	32,069	(89,472)	9,369	229,125

for the six months to 31 December 2010
	Ordinary	Share			Non-
	share	premium	Special	Warrant	distributable	Capital	Revenue
	capital	account	Reserve	reserve	reserve	reserves	reserve	Total
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Balance at 30 June 2010	8,637	223,501	10,365	3,050	32,068	(138,218)	4,317	143,720
Profit for the period	-	-	-	-	-	58,077	3,387	61,464
Costs incurred for corporate action	-	(693)	-	-	-	-	-	(693)
Balance at 31 December 2010	8,637	222,808	10,365	3,050	32,068	(80,141)	7,704	204,491

for the year to 30 June 2011
	Ordinary	Share			Non-
	share	premium	Special	Warrant	distributable	Capital	Revenue
	capital	account	Reserve	reserve	reserve	reserves	reserve	Total
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Balance at 30 June 2010	8,637	223,501	10,365	3,050	32,068	(138,218)	4,317	143,720
Profit for the year	-	-	-	-	-	24,074	7,073	31,147
Ordinary dividends paid	-	-	-	-	-	-	(4,996)	(4,996)
Conversion of warrants	-	2	-	(1)	1	-	-	2
Transfer to special reserve	-	(223,501)	223,501	-	-	-	-	-
Issue of ordinary shares	1,356	30,867	-	-	-	-	-	32,223
Issue costs of ordinary share capital	-	(619)	-	-	-	-	-	(619)
Transfer on loss of control of subsidiary	-	-	-	-	-	311	(311)	-
Balance at 30 June 2011	9,993	30,250	233,866	3,049	32,069	(113,833)	6,083	201,477

UNAUDITED CONDENSED GROUP BALANCE SHEET

	31 December 2011	31 December 2010	30 June 2011
	£'000s	£'000s	£'000s
Non-current assets
Investments	426,697	399,329	407,560
Current assets
Other receivables	4,359	2,668	1,623
Derivative financial instruments	4,155	581	1,625
Cash and cash equivalents	973	3,832	1,293
	9,487	7,081	4,541
Current liabilities
Loans	(1,256)	(31,135)	(3,555)
Other payables	(8,249)	(1,578)	(1,362)
Derivative financial instruments	(751)	(2,292)	(2,002)
Zero dividend preference shares	(76,313)	-	-
	(86,569)	(35,005)	(6,919)
Net current liabilities	(77,082)	(27,924)	(2,378)
Total assets less current liabilities	349,615	371,405	405,182
Non-current liabilities
Bank loans	(17,868)	-	(30,943)
Zero dividend preference shares	(102,622)	(166,914)	(172,762)
Net assets	229,125	204,491	201,477
Equity attributable to equity holders
Ordinary share capital	9,993	8,637	9,993
Share premium account	30,251	222,808	30,250
Special reserve	233,866	10,365	233,866
Warrant reserve	3,049	3,050	3,049
Non-distributable reserve	32,069	32,068	32,069
Capital reserves	(89,472)	(80,141)	(113,833)
Revenue reserve	9,369	7,704	6,083
Total attributable to equity holders	229,125	204,491	201,477
Net asset value per ordinary share
Basic - pence	229.29	236.75	201.63

UNAUDITED CONDENSED GROUP STATEMENT OF CASH FLOWS

	Six months to	Six months to	Year  to
	31 December 2011	31 December 2010	30 June 2011
	£'000s	£'000s	£'000s
Cash flows from operating activities	9,421	(3,098)	(3,919)
Cash flows from investing activities	-	-	-
Cash flows before financing activities	9,421	(3,098)	(3,919)
Financing activities:
Ordinary dividends paid	(3,248)	-	(4,996)
Movement on loans	(13,216)	(442)	1,758
Proceeds from warrants exercised	1	-	2
Cash flows from issue of ordinary shares	-	(87)	126
Cost of corporate action	(279)	-	-
Cash flows from financing activities	(16,742)	(529)	(3,110)
Net decrease in cash and cash equivalents	(7,321)	(3,627)	(7,029)
Cash and cash equivalents at the beginning of the period	1,293	6,495	6,495
Effect of movement in foreign exchange	(171)	964	1,827
Cash and cash equivalents at the end of the period	(6,199)	3,832	1,293
Comprised of:
Cash	973	3,832	1,293
Bank overdraft	(7,172)	-	-
Total	(6,199)	3,832	1,293

NOTES

The Directors have declared an interim dividend in respect of the six months to 31 December 2011 of 3.50p per ordinary share payable on 16 March 2012 to shareholders on the register at close of business on 2 March 2012. The dividend has not been accrued in the results for the six months to 31 December 2011.

The half-yearly report is available on the website www.utilico.bm and will be posted to shareholders at the beginning of March 2011. Copies may be obtained during normal business hours from Exchange House, Primrose Street, London, EC2A 2NY.

By order of the Board

F&C Management Limited, Secretary

21 February 2012

 

END

 

 

IR FMGZZLZNGZZG