Investec 5%pf Regulatory News (47HA)

30 Nov 2007 12:58

Investec Investment Trust PLC30 November 2007 Investec Investment Trust PLC Unaudited Financial Information For the six months ended 30 September 2007 INDEX Page Management Report and Responsibility Statement 1 Profit and Loss Account 2 Balance Sheet 3 Notes to the Financial Statements 4 MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT MANAGEMENT REPORT The directors present their management report for the six months to 30 September 2007. The results for the Company show a pre-tax loss of £32k (30 September 2006: lossof £35k) for the period (see page 6). At 30 September 2007 the Company had netassets of £27,450k (30 September 2006: £27,524k). The directors do not recommend the payment of a final dividend on the ordinaryshares for the period (2006: £nil). Dividends paid on the preference stocks inthe period amounted to £31,385 (2006: £31,385). The company is a wholly owned subsidiary of Investec Group Investments (UK)Limited, which is in turn a wholly-owned subsidiary of Investec plc. The company is an investment holding company and it is the directors' intentionthat the company will continue its business as an investment holding companyduring the forthcoming year. The company's 3.5 per cent and 5 per cent cumulative preference stocks arelisted on the London Stock Exchange. Investec Group Investments (UK) Limited and its subsidiaries own all of theordinary shares, £266,586 nominal 3.5 per cent cumulative preference stock and£96,612 nominal 5 per cent cumulative preference stock of the company. The company's principal activity is to source funds from the financial marketfor Group activities. The financial risks are managed at the Group level. Surplus liquidity arising from time to time was loaned by the company during theyear on an interest free basis to its immediate parent company, Investec GroupInvestments (UK) Limited. The loan is repayable upon demand and the company hasthe right, at any time and at its sole discretion, to charge interest thereon ata commercial rate. The company's exposure to financial risks is further discussed in note 10. RESPONSIBILITY STATEMENT We confirm that to the best of our knowledge: a) The condensed set of financial statements has been prepared in accordancewith financial reporting standards; b) The interim management report includes a fair review of the informationrequired by DTR 4.2.7R (indication of important events during the first sixmonths and description of principal risks and uncertainties for the remainingsix months of the year); and By order of the Board Alan Tapnack Steve Burgess30 September 2007 1 PROFIT AND LOSS ACCOUNTfor the period to 30 September 2007 Unaudited Unaudited Audited 6 months to 6 months to Year to 30 September 30 September 31 March 2007 2006 2007 Notes £000 £000 £000 Administrative expenses (1) (4) (5)Interest payable 3 (31) (31) (63) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (32) (35) (68) Taxation 2 - - - LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (32) (35) (68) RETAINED LOSS FOR THE PERIOD 8 (32) (35) (68) There are no recognised gains or losses in the period other than the retained loss for the financial period. There is no material difference between the results disclosed in the profit andloss account and the results on an unmodified historical cost basis. 2 BALANCE SHEETas at 30 September 2007 Unaudited Audited Unaudited 30 September 31 March 30 September 2007 2007 2006 Notes £000 £000 £000 CURRENT ASSETS Receivable from immediate parent undertaking 4 29,166 29,197 29,229Other debtors 2 2 2 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 5 (64) (63) (62) NET CURRENT ASSETS 29,104 29,136 29,169 CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR 6 (1,645) (1,645) (1,645) NET ASSETS 27,459 27,491 27,524 CAPITAL AND RESERVES Called up share capital 7 14,436 14,436 14,436Profit and loss account 8 13,023 13,055 13,088 TOTAL EQUITY SHAREHOLDERS' FUNDS 27,459 27,491 27,524 3 NOTES TO THE FINANCIAL STATEMENTSat 30 September 2007 1. ACCOUNTING POLICIES Basis of presentation The interim results are prepared in accordance with the recognition andmeasurement requirements of Financial Reporting Standards and the disclosure oftransparency rules. The accounting policies applied in the preparation of theresults for the six months ended 30 September 2007 are consistent with thoseadopted in the financial statements for the year ended 31 March 2007. The information in this report for the six months to 30 September 2007, whichwas approved by the board of directors on 30 November 2007, does not constitutestatutory accounts as defined in Section 240 of the UK Companies Act 1985("Act"). Statutory accounts for the year ended 31 March 2007, which contained anunqualified audit report under Section 235 of the Act and which did not containstatements under Section 237 of the Act, have been delivered to the Registrar ofCompanies in accordance with Section 242 of the Act. Cash flow statement The company is exempt from the requirements to prepare a cash flow statementunder Financial Reporting Standard 1, because a consolidated cash flow statementis included in the publicly available consolidated financial statements of itsultimate parent undertaking, Investec plc. Receivables Receivables are non-derivative financial assets with fixed or determinablepayments that are not quoted in an active market, do not qualify as tradingassets and have not been designated as either fair value through profit and lossor available for sale. Such assets are carried at amortised cost using theeffective interest method if the time value of money is significant. Gains andlosses are recognised in income when the receivables are derecognised orimpaired, as well as through the amortisation process. Classification of shares as debt The preference shares issued by the company create a financial liability asdefined by FRS 25 and are therefore presented as a liability in the balancesheet. Shares classified as debt are initially measured at fair value net oftransaction costs and thereafter at amortised cost until extinguished onredemption. The corresponding dividends relating to the liability are chargedas interest expense in the profit and loss account on an accruals basis. Taxation Corporation tax is provided on taxable profits at the current rate. Deferred tax is recognised in respect of all timing differences that haveoriginated but not reversed at the balance sheet date where transactions orevents that result in an obligation to pay more tax in the future or a right topay less tax in the future have occurred at the balance sheet date. This issubject to deferred tax assets only being recognised if it is considered morelikely than not that there will be sustainable profits from which the futurereversal of the underlying timing differences can be deducted. Timingdifferences are differences between the Company's taxable profits and itsresults as stated in the financial statements, which are capable of reversal inone or more subsequent periods. Deferred tax is measured at a non-discounted basis at the tax rates that areexpected to apply in the periods in which the timing differences are expected toreverse, based on tax rates and laws that have been enacted or substantivelyenacted at the balance sheet date. Related party transactions The directors have taken advantage of the exemptions available in FinancialReporting Standard 8 from disclosing transactions with related parties which aremembers of the Investec plc group. 4 2. TAX ON LOSS ON ORDINARY ACTIVITIES Unaudited Unaudited Audited 6 months to 6 months to Year to 30 September 30 September 31 March 2007 2006 2007 £000 £000 £000 Taxation - - - The effective tax rate for the period is 0% (2006 - 0%). The current tax chargeis lower than the standard rate of UK Corporation Tax, due to the followingreconciling items: £000 £000 £000Tax on loss on ordinary activities at 30% (10) (10) (20)Disallowed expenses (dividend on preferred shares) 9 10 19Tax losses claimed by fellow group companies for nil cost (221) (220) (438)UK to UK transfer pricing adjustment 222 220 439 - - - In the event that, in future periods, if tax losses are not available from groupcompanies to offset taxable profits, the company may incur a tax liability. Thecompany expects to have sufficient resources available to meet such obligations. 3. INTEREST PAYABLE The interest payable represents the dividend paid and accrued on the cumulativepreference shares classified as financial liabilities and comprises thefollowing: 6 months to 6 months to Year to 30 September 30 September 31 March 2007 2006 2007 £000 £000 £000Dividends paid 3.5% Cumulative preference shares 1 June 3 3 7 3.5% Cumulative preference shares 1 December 12 12 23 5% Cumulative preference shares 15 May 1 1 2 5% Cumulative preference shares 15 November 5 5 9 Dividends payable 3.5% Cumulative preference shares 7 7 15 5% Cumulative preference shares 3 3 7 31 31 63 4. RECEIVABLE FROM IMMEDIATE PARENT UNDERTAKING The amount represents a loan to the immediate parent company, Investec GroupInvestments (UK) Limited on an interest free basis. The loan is repayable upondemand and the company has the right, at any time and at its sole discretion, tocharge interest thereon at a commercial rate. 5 5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Unaudited Audited Unaudited 30 September 31 March 30 September 2007 2007 2006 £000 £000 £000Amounts owed to parent and fellow subsidiary undertakings 10 9 8Other creditors 54 54 54 64 63 62 6. CREDITORS: AMOUNTS FALLING DUE OVER ONE YEAR Unaudited Audited Unaudited 30 September 31 March 30 September 2007 2007 2006 £000 £000 £000 1,300,000 3.5% cumulative preference shares of 1.75p each authorised, issued, allotted and fully paid up 1,300 1,300 1,300345,438 5% cumulative preference shares of 2.5p each authorised, issued, allotted and fully paid up 345 345 345 1,645 1,645 1,645 The 3.5% cumulative preference stock and the 5% cumulative preference stock carry the following rights: - holders are entitled to fixed cumulative preferential dividends at the rates of 3.5% and 5% per annum respectively. Payment of such dividends is due on 1 June and 1 December each year in the case of the 3.5% preference stock and 15 May and 15 November each year in the case of the 5% preference stock. - holders are entitled to the amounts paid up on the preference stocks together with all arrears of the respective cumulative preferential dividends on a winding up of the company, in priority to the Ordinary shareholders. - holders are not entitled to attend or vote at general meetings of the company, save in specified circumstances, principally where the business to be transacted affects their rights as preference stockholders. - there is no prescribed redemption or repayment date for either class of preference stock. 7. CALLED UP SHARE CAPITAL Unaudited Audited Unaudited 30 September 31 March 30 September 2007 2007 2006 £000 £000 £000Authorised60,000,000 (2006: 60,000,000) ordinary shares of 25p each 15,000 15,000 15,000 Issued, allotted and fully paid 57,744,387 (2006: 57,744,387) ordinary shares of 25p each 14,436 14,436 14,436 6 8. RESERVES Profit and loss account £000 Balance at the beginning of the year 13,055Retained loss for the period (32) Balance at the end of the period 13,023 9. RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS 30 September 31 March 30 September 2007 2007 2006 £000 £000 £000 Opening shareholders' funds 27,491 27,559 27,559Loss for the financial period (32) (68) (35) Closing equity shareholders' funds 27,459 27,491 27,524 10. RISK MANAGEMENT Credit risk The company has no exposure to credit risk other than on the loan advanced to the immediate parent undertaking. Liquidity risk The company's only financial obligations in the foreseeable future are paymentof dividend on the preference shares and administrative expenses. The companyis able to recall the loan to the parent undertaking (or part therefore) at anytime and therefore does not foresee any risk of being unable to meet itsfinancial commitments. Interest rate risk The company has a fixed interest obligation in respect of the dividend on thepreference shares and is therefore not exposed to fluctuation in interest rates.The loan to the immediate parent is interest free. However, the company hasthe right at any time and at its sole discretion to charge interest thereon at acommercial rate. 11. ULTIMATE PARENT UNDERTAKING The company's immediate parent undertaking is Investec Group Investments (UK)Limited. The company's ultimate parent undertaking and controlling party is Investec plc,a company incorporated in the United Kingdom and registered in England andWales. Investec Bank (UK) Limited is the smallest group in which the results ofthe company are consolidated. The consolidated financial statements of Investecplc and Investec Bank (UK) Limited are available to the public and may beobtained from Investec plc at 2 Gresham Street, London, EC2V 7QP. 7 This information is provided by RNS The company news service from the London Stock Exchange