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Welsh Indl.Inv.Tst (WII)

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Tuesday 02 December, 2008

Welsh Indl.Inv.Tst

Half-yearly report REPLACEMENT ANNOUNCEMENT

WELSH INDUSTRIAL INVESTMENT TRUST PLC

This announcement replaces that released yesterday afternoon under reference
BIT:2693:0 as a result of an error being discovered in the Chairman's Statement.




WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
6 MONTHS ENDED 5 OCTOBER 2008

CHAIRMAN'S INTERIM STATEMENT

Dear Shareholder,

The results for the half year ended 5 October 2008 primarily reflect the
continuing significant downturn in the economy in general and equity markets in
particular. As a consequence the capital account shows a loss of £1,437,000
compared with a gain of £80,000 for the comparable period last year. This has
been offset by some small extent by an increase in the revenue account from
£41,000 to £50,000.

The basic net asset value per ordinary share as at 5 October 2008 was 350.3p
compared with 461.8p as at 5 April 2008.

The major variances in the revenue results between the two periods were a
reduction of £17,000 in bank interest receivable, offset by a greater reduction
in net trading losses of £29,000 in Welsh Industrial Securities Ltd.

The value of the investment portfolio has fallen by 25% since the year end
compared with a decrease in the FTSE All Share index over the same period of
18%. Whilst the majority of the stocks held within the portfolio have fallen in
value in line with the market as a whole, the largest negative movements in
value have been seen in Avesco Group, Image Scan Holdings, London Associated
Properties and SpaceandPeople. Details of the Company's ten largest investments
as at 5 October 2008 can be found in note 8 of these interim financial
statements.

Between 5 October 2008 and 24 November 2008 the value of the investment
portfolio has fallen by a further 15% compared with a decrease in the FTSE All
Share Index over the same period of 18%.

As in previous years the Board is proposing no interim dividend.

A P Stirling
Chairman

1 December 2008






WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 5 OCTOBER 2008

                     Six months to          Six months to            Year ended
                    5 October 2008         5 October 2007          5 April 2008
             Revenue Capital Total Revenue Capital  Total Revenue Capital Total
               £'000   £'000 £'000   £'000   £'000  £'000   £'000  £'000  £'000
Income:
Dividend and
interest income   97       -    97     116       -    116     222      -    222
Other operating
income             1       -     1     (30)      -    (30)     75      -     75
               -----   ----- -----   -----   -----  -----   -----  -----  -----
                  98       -    98      86       -     86     297      -    297
(Loss)/Gain
on investments
held at fair
value              - (1,437)(1,437)      -      80     80       - (1,618)(1,618)
               -----  -----  -----   -----   -----  -----   -----  -----  -----
Total income
And (losses)/
gains on
investments       98 (1,437)(1,339)     86      80    166     297 (1,618)(1,321)
               -----  -----  -----   -----   -----  -----   -----  ----- ------
Expenses
Operating
Expenses         (46)      -   (46)    (43)      -    (43)    (88)     -    (88)
Finance costs     (2)      -    (2)     (2)      -     (2)     (4)     -     (4)
               -----   -----  -----  -----   -----  -----   -----  -----  -----
                 (48)      -   (48)    (45)      -    (45)    (92)     -    (92)
               -----   -----  -----  -----   -----  -----   -----  -----  -----
Profit/(loss)
before taxation   50 (1,437)(1,387)     41      80    121     205 (1,618)(1,413)
Taxation           -      -      -       -       -      -       -      -      -
               -----  -----  -----   -----   -----  -----   -----  -----  -----
Profit/(loss)
For the period    50 (1,437)(1,387)     41      80    121     205 (1,618)(1,413)
               =====  =====  =====   =====   =====  =====   =====  =====  =====

Basic & diluted Earnings
Per Ordinary share (note 5) (102.7)p                  8.9p              (104.7)p
                             =====                  =====               ======

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

The revenue and capital columns are supplementary to this and are prepared under
guidance published by the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing
operations.

The profit for the period is attributable to equity shareholders of the Parent
Company.








WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 5 OCTOBER 2008


                               Half year ended 5 October 2008
                                 Ordinary
                                    share     Capital    Retained
                                  capital     reserve    Earnings       Total
                                    £'000       £'000       £'000       £'000
Balance at 5 April 2008                67       5,765         402       6,234
Profit / (loss) for the period          -      (1,437)         50      (1,387)
Ordinary dividend paid (Note 4)         -           -        (118)       (118)
                                  -------     -------     -------     -------
Balance at 5 October 2008              67       4,328         334       4,729
                                  =======     =======     =======     =======


                               Half year ended 5 October 2007
                                 Ordinary
                                    share     Capital    Retained
                                  capital     reserve    Earnings       Total
                                    £'000       £'000       £'000       £'000
Balance at 5 April 2007                67       7,383         282       7,732
Profit for the period                   -          80          41         121
Ordinary dividend paid (Note 4)         -           -         (85)        (85)
                                  -------     -------     -------     -------
Balance at 5 October 2007              67       7,463         238       7,768
                                  =======     =======     =======     =======


                                    Year ended 5 April 2008
                                 Ordinary
                                    share     Capital    Retained
                                  capital     reserve    Earnings       Total
                                    £'000       £'000       £'000       £'000
Balance at 5 April 2007                67       7,383         282       7,732
Profit/(loss) for the period            -      (1,618)        205      (1,413)
Ordinary dividend paid (Note 4)         -           -         (85)        (85)
                                  -------     -------     -------     -------
Balance at 5 April 2008                67       5,765         402       6,234
                                  =======     =======     =======     =======





WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED BALANCE SHEET
AS AT 5 OCTOBER 2008

                                        5 October      5 October        5 April
                                             2008           2007           2008
Assets                                      £'000          £'000          £'000
Non current assets
  Financial assets                          4,132          7,090          5,424
                                          -------        -------        -------
Total non current assets                    4,132          7,090          5,424
                                          -------        -------        -------
Current assets
  Accrued income and prepaid expenses          20             16             15
  Other current assets                          2             62              5
  Cash                                        661            684            878
                                          -------        -------        -------
  Total current assets                        683            762            898
                                          -------        -------        -------
Total assets                                4,815          7,852          6,322
                                          -------        -------        -------
Current liabilities
  Trade and other payables                    (41)           (39)           (42)
                                          -------        -------        -------
Total current liabilities                     (41)           (39)           (42)
                                          -------        -------        -------

Total assets less current liabilities       4,774          7,813          6,280

Non current liabilities
  8.75% Cumulative Preference shares          (45)           (45)           (45)
                                          -------        -------        -------
Net assets                                  4,729          7,768          6,235
                                          =======        =======        =======
Capital and reserves
  Ordinary share capital (note 6)              67             67             67
  Capital reserve                           4,328          7,463          5,766
  Retained earnings                           334            238            402
                                          -------        -------        -------
Total equity attributable to equity
Holders of the parent                       4,729          7,768          6,235
                                          =======        =======        =======


Basic & diluted net asset value
per ordinary share (Note 7)                 350.3p         575.4p         461.8p
                                          =======        =======        =======




WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 5 OCTOBER 2008
                                               Half          Half
                                         year ended    year ended    Year ended
                                          5 October     5 October       5 April
                                               2008          2007          2008
                                              £'000         £'000         £'000
Cashflow from operating activities
Investment income received                       94            96           179
Deposit interest received                         3            20            43
Share dealing loss                               (1)          (32)           85
Other income                                      -             2             1
Other operating expenses                        (54)          (52)          (89)
                                            -------       -------       -------
Net cash flows from operating activities         42            34           219
                                            -------       -------       -------

Cash flows from investing activities
Purchase of investments                        (412)         (850)         (956)
Sale of investments                             271           528           646
                                            -------       -------       -------
                                               (141)         (322)         (310)
                                            -------       -------       -------

Cash flows from financing activities
Preference dividends paid                         -             -            (4)
Equity dividends paid                          (118)          (84)          (84)
                                            -------       -------       -------
                                               (118)          (84)          (88)
                                            -------       -------       -------
Decrease in cash and cash equivalents          (217)         (372)         (178)

Cash and cash equivalents at start of period    878         1,056         1,056
                                            -------       -------       -------
Cash and cash equivalents at end of period      661           684           878
                                            =======       =======       =======





WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that, to the best of their knowledge:

(a) the condensed set of financial statements have been prepared in accordance
with IAS 34;

(b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year); and

(c) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related party transactions and changes
therein).



PRINCIPAL RISKS, MANAGEMENT AND REGULATORY ENVIRONMENT

The Directors believe that the principal risks and uncertainties of the Group
remain unchanged from those as set out in the Report and Financial Statements
for the year ended 5 April 2008 ("Annual Report"). The principal risks of the
Group relate to its investment activities in securities and include market price
risk, liquidity risk, interest rate risk and credit risk.

Further details can be found on pages 2 and 3 (Investment Policy) and in note 17
(Financial Instruments) of the Annual Report.




WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
PRINCIPAL ACCOUNTING POLICIES

The Group's principal accounting policies have not changed from the audited
financial statements for the year ended 5 April 2008 and are as follows:

(a) Basis of accounting
The financial statements of the Group and the Company have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as adopted
by the European Union and those parts of the Companies Act 1985 applicable to
companies reporting under IFRS.

(b) Basis of preparation
The financial statements have been prepared under the historical cost
convention, except for the revaluation of certain financial instruments. The
principal accounting policies adopted are set out below. Where presentational
guidance set out in the Statement of Recommended Practice ("the SORP") for
investment trusts issued by the Association of Investment Companies ("the AIC")
is consistent with the requirements of IFRS and appropriate in the context of
the Company's activities, the directors have sought to prepare the financial
statements on a basis compliant with the recommendations of the SORP.

(c) Significant accounting judgements and key sources of uncertainty
The preparation of financial statements in conformity with IFRS requires
management to make judgments, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on historical
experience and other factors that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods. The most significant techniques for estimation are described in
the accounting policies below.

The principal accounting polices adopted in preparing these financial statements
are set out below. These policies have been consistently applied to all the
periods presented, unless otherwise stated.

(d) Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and its subsidiary undertakings made up to 5 October 2008.  All
intra-group transactions, balances, income and expenses are eliminated on
consolidation.

(e) Presentation of Income Statement
In order to better reflect the activities of an investment trust company and in
accordance with guidance issued by the AIC, supplementary information which
analyses the Income Statement between items of a revenue and capital nature has
been presented alongside the Income Statement. Net capital returns may not be
distributed by way of a dividend.  The net revenue is the measure the directors
believe appropriate in assessing the Group's compliance with certain
requirements set out in section 842 of the Income and Corporation Taxes Act
1988.

(f) Segmental reporting
A business segment is a group of assets and operations that are subject to
risks and returns that are different from those of other business segments.  The
Group comprises of one business segment only - the Investment Trust, which
invests in debt and equity securities based mainly in the UK for medium to long
term capital growth.  This is consistent with internal reporting.  All revenues
are derived from operations within the United Kingdom.  Consequently no separate
business or geographical segment information is provided.

(g) Dividend and interest income
    (i) Dividends
        Dividends are recorded when the shares are marked `ex-dividend' as this
        is when the right to receive the income is established.

    (ii)Interest
        Interest on fixed income debt and non equity shares is calculated using
        the effective interest rate method.

        Interest on bank deposits is recognised on a receivable basis.

(h) Expenses
All expenses and interest payable are accounted for on an accruals basis.   All
expenses are allocated to revenue through the Income Statement except the
expenses which are incidental to the disposal of an investment are deducted from
the disposal proceeds of the investment.

(i) Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.

The tax currently payable is based on taxable profit for the period. Taxable
profit differs from profit before tax as reported in the Income Statement
because it excludes items of income or expense that are taxable or deductible in
other years and it further excludes items that are never taxable or deductible.
The Group's liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet date.

In line with the recommendations of the SORP, the allocation method used to
calculate tax relief on expenses presented against capital returns in the
supplementary information in the Income Statement is the "marginal basis". Under
this basis, if taxable income is capable of being offset entirely by expenses
presented in the revenue column of the Income Statement, then no tax relief is
transferred to the capital return column.

Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised.

Investment trusts which have approval under section 842 of the Income
Corporation Taxes Act 1988 are not liable for taxation on capital gains.

The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the assets to be
recovered.

Deferred tax is calculated at the rates that are expected to apply in the period
when the liability is settled or the asset realised. Deferred tax is charged or
credited in the Income Statement, except when it relates to items charged or
credited directly to equity, in which case the deferred tax is also dealt with
in equity.


(j) Investments held at fair value through profit or loss
Financial assets designated as at fair value through profit or loss at inception
are those that are managed and whose performance is evaluated on a fair value
basis, in accordance with the documented investment strategy of the Company.
Information about these financial assets is provided internally on a fair value
basis to the Group's key management. The Group's investment strategy is to
provide shareholders with long term capital and income growth by investing
primarily in UK equities. Consequently all investments are classified as held at
fair value through profit or loss.

(i)  Securities
      Purchases and sales of listed investments are recognised on the trade
      date, the date on which the Group commit to purchase or sell the
      investment. All investments are designated upon initial recognition as
      held at fair value, and are measured at subsequent reporting dates at fair
      value which is the market bid price.  Fair values for unquoted
      investments, or for investments for which there is only an inactive
      market, are established by taking into account the International Private
      Equity and Venture Capital Valuation Guidelines as follows:

     (i)Investments which have been made in the last 12 months are valued at
        cost in the absence of overriding factors;
    (ii)Investments in companies at an early stage of development are also
        valued at cost in the absence of overriding factors;
   (iii)Where investments have gone beyond the stage in their development in
        (ii) above, the shares may be valued by having regard to a suitable
        price-earnings ratio to that company's historic post-tax earnings or the
        net asset value of the investment; and
    (iv)Where a value is indicated by a material arm's length market transaction
        by a third party in the shares of a company, that value may be used.

(ii) Loan Stock
      Unquoted loan stock is classified as loans and receivables in accordance
      with IAS39 and carried at amortised cost using the Effective Interest Rate
      method.  Movements in the amortised cost relating to interest income are
      reflected in the revenue column of the Income Statement and movements in
      respect of capital provisions are reflected in the capital column of the
      Income Statement.  Loan stock accrued interest is recognised in the
      Balance Sheet as part of the carrying value of the loans and receivables
      at the end of each reporting period.

Gains and losses on the disposal of investments and permanent impairments in the
value of investments are dealt with in capital reserves - realised, and
unrealised gains and losses on the revaluation of investments are dealt with in
capital reserves - unrealised.

Year end exchange rates are used to translate the value of investments which are
denominated in foreign currencies.

Fixed income and equity investments are regarded as financial fixed assets as
they are held for long-term investment purposes.

(k) Cash and cash equivalents
Cash comprises cash on hand and demand deposits.  Cash equivalents are short
term, highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.

(l) Dividends payable
Dividends are recognised when they become legally payable. In the case of
interim dividends to equity shareholders, this is when the interim dividends are
paid. In the case of final dividends, this is when approved by the shareholders
at the AGM.


(m) Trade and other payables
On initial recognition, trade and other payables are stated at fair value,
subsequently, they are carried at amortised cost.

(n) Capital reserves
The capital reserve comprises of both realised and unrealised elements.
Capital reserve - realised.
The following are accounted for in this reserve:
    gains and losses on the realisation of investments.
    realised exchange differences of a capital nature.
    expenses and finance costs, together with the related taxation effect,
    charged to this reserve in accordance with the above policies.
Capital reserve - unrealised.
The following are accounted for in this reserve:
    increases and decreases in the valuation of investments held at the
    period-end.
    unrealised exchange differences of a capital nature.
    provisions charged against carrying value of investments held at the
    period end.

(o) Revenue reserve
All other income and expenses not recognised in the capital reserve are
recognised in this reserve.  Distributions can only be made from the revenue
reserve.





WELSH INDUSTRIAL INVESTMENT TRUST PLC
INTERIM RESULTS
NOTES TO THE ACCOUNTS

1 COMPARATIVE INFORMATION

The financial information contained in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
financial information for the half years ended 5 October 2008 and 5 October
2007 has not been audited, and the auditors have not reported on or reviewed
these interim financial statements. The information for the year ended 5 April
2008 has been extracted from the latest published audited financial statements.
The audited financial statements for the year ended 5 April 2008 have been
filed with the Registrar of Companies. The report of the auditors was
unqualified, did not include reference to any matter to which the auditors drew
attention by way of emphasis without qualifying their report, and did not
contain statements under section 237(2) or (3) of the Companies Act 1985.


2 INCOME
                                               Half          Half
                                         year ended    year ended    Year ended
                                          5 October     5 October       5 April
                                               2008          2007          2008
Income from investments                       £'000         £'000         £'000
Dividend income (UK Listed)                      74            71           134
Other UK investment income                       20            25            45
Interest receivable: bank and brokers             3            20            43
                                              -----         -----         -----
                                                 97           116           222
                                              -----         -----         -----
Other operating income
Share dealing profit                              4             1           114
Unrealised losses on trading
Securities held in subsidiary                    (3)          (32)          (40)
Other                                             -             1             1
                                              -----         -----         -----
                                                  1           (30)           75
                                              -----         -----         -----
Total income                                     98            86           297
                                              =====         =====         =====
Total income comprises:
Dividends                                        74            71           134
Interest                                         23            45            88
Other income                                      1           (30)           75
                                              -----         -----         -----
                                                 98            86           297
                                              =====         =====         =====


3 FINANCE COSTS
                                               Half          Half
                                         year ended    year ended    Year ended
                                          5 October     5 October       5 April
                                               2008          2007          2008
                                              £'000         £'000         £'000
Dividends on non equity shares:-
 8.75% cumulative preference                      2             2             4
                                              -----         -----         -----
                                                  2             2             4
                                              =====         =====         =====


4 DIVIDENDS

                                                Half          Half
                                          year ended    year ended    Year ended
                                           5 October     5 October       5 April
                                                2008          2007          2008
                                               £'000         £'000         £'000
Amounts recognised as distributions to
equity holders in the period:

Final dividend for the year ended 5 April,
2008 of 8.75p (2007: 6.3p) per share             118            85            85
                                             -------       -------       -------
                                                 118            85            85
                                             =======       =======       =======


5 EARNINGS PER ORDINARY SHARE

Basic earnings per ordinary share is based on the net loss for the half year of
£1,387,000 (half year ended 5 October 2007: £121,000; year ended 5 April
2008: loss £1,413,000) and on 1,350,000 ordinary shares.

The  earnings per ordinary share figures detailed above can be further analysed
between revenue and capital as follows:-

                                                Half          Half
                                          year ended    year ended    Year ended
                                           5 October     5 October       5 April
                                                2008          2007          2008
                                               £'000         £'000         £'000
Net revenue profit attributable to equity
holders of the parent                             50            41          205
Net capital profit/(loss) attributable to
equity holders of the parent                  (1,437)           80       (1,618)
                                             -------       -------       -------
Net total profit/(loss)                       (1,387)          121       (1,413)
                                             =======       =======       =======

The weighted average number of ordinary shares in issue during the period was
1,350,000

Earnings per share                             Pence         Pence        Pence
Revenue                                          3.7           3.0         15.2
Capital                                       (106.4)          5.9       (119.9)
                                             -------       -------       -------
Total earnings per share                      (102.7)          8.9       (104.7)
                                             =======       =======       =======

There are no potentially dilutive shares in issue


6 SHARE CAPITAL

(i) Ordinary
1,350,000 ordinary shares were in issue throughout the periods covered in this
statement.

(ii) Preference
In addition there were in issue 225,000 8.75% cumulative preference shares of
20p each. The preference dividend is cumulative and payable in one instalment on
5 April every year, and is deemed to accrue evenly from day to day. The voting
rights of the preference shareholders are restricted to resolutions to winding
up the company, or to vary the special rights attached to the preference shares,
in which event each shareholder is entitled to one vote. Upon the winding up of
the company the preference shareholders rank first in  the return  of capital,
being however restricted to the nominal amount paid up, together with any
arrears of the preference dividend.


7 NET ASSET VALUE PER ORDINARY SHARE
Net asset value per ordinary share is based on Equity attributable to equity
shareholders of £4,827,000 (half year ended 5 October 2007: 7,768,000; year
ended 5 April 2008: £6,234,000) and on  1,350,000 ordinary shares being the
number of ordinary shares in issue at each period end.


8 INVESTMENTS - SECURITIES

As at 5 October 2008 the Company's ten largest investments were:-

                                      Market Value       % of invested
                                            £'000s           portfolio
UK Listed Securities
Anglo Pacific Group plc                        143               3.46
British American Tobacco plc                   579              14.03
Devro plc                                      162               3.92
London & Associated Properties plc             146               3.53
National Grid plc                              222               5.39
Treasury Stock 6.25% 2010                      194               4.69
United Utilities Group plc                     123               2.97

Securities dealt in under AIM
OMG plc                                        100               2.42
SpaceandPeople plc                             999              24.18

Unlisted Securities
Xceed Imaging Limited                           99               2.42
                                             -----              -----
                                             2,767              67.01
                                             =====              =====


10 RELATED PARTY TRANSACTIONS

During the period under review the Group paid management charges totalling
£9,000 excluding VAT (comparable period 2007: £9,000) to Security Change
Limited, a subsidiary undertaking of Gresham House plc, a substantial
shareholder of the Company.  As at 5 October 2008 the Group owed £1,763 to
Security Change Limited (5 October 2007: £5,287).                                                                                                                                                                                                                           

a d v e r t i s e m e n t