17 Oct 2022 07:00
RNS Number : 0133D JPMorgan UK Smaller Cos IT PLC 17 October 2022 160LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN UK SMALLER COMPANIES INVESTMENT TRUST PLC
(the 'Company')
FINAL RESULTS FOR THE YEAR ENDED 31ST JULY 2022
Legal Entity Ientifier: 49300PXALXKUMU9JM18
Information isclose in accorance with DTR 4.2.2
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The Directors announce the Company's results for the year ene 31st July 2022
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CHAIRMAN'S STATEMENT
Investment Performance
After an exceptionally strong prior year, performance over the financial year to 31st July 2022 was isappointing. Over the perio, the Company's total return on net assets (with net iviens reinveste) was -23.8% as compare to the Numis Smaller Companies plus AIM Inex (excluing investment companies) which returne -16.0%. In aition, an in contrast to the previous year, the Company's share price iscount to NAV wiene from 8.0% on 31st July 2021 to 11.0% on 31st July 2022. Whilst the Company's peer group also experience wiening iscounts, this nevertheless amplifie the negative share price total return to shareholers which was -26.1%.
Having skillfully navigate the challenges of COVID, the managers entere 2022 with some optimism only to have the financial outlook turne on its hea by Putin's invasion of Ukraine. Amongst other factors, the resultant effect on energy an commoity prices rapily force many central banks to increase interest rates significantly, in sharp contrast to the economic stimulus previously provie by governments. This not only pile pressure on consumers but also cause long term growth focuse investment strategies, such as the Company's, to unerperform ramatically. Whilst the managers have not an will not change their investment approach, the macro economic backrop necessitate significant changes to the portfolio. In their report, the managers provie further etail on portfolio performance an attribution, together with a commentary on markets an portfolio activity.
Since the year-en, the iscount has wiene to 16.6% as at 12th October 2022. The return on net assets was -1.9% compare to a ecrease in the benchmark of -13.2% an the return to shareholers was -21.2%.
Revenue an Diviens
Shareholers will remember that the ivien was not fully covere by revenue in the previous year. However, the Directors felt able to pay an increase ivien (supplemente by revenue reserves) when taking into account the managers' robust revenue projections. These projections have prove to be correct with net revenue increasing by 91.7% to 1636.6160million in the financial year to 31st July 2022.
Consequently, the Directors are recommening a final ivien of 6.9p (2021: .7p) per share, an increase of 21.1%. If approve, the ivien will be pai on 19th December 2022 to shareholers on the register at close of business on 11th November 2022.
Gearing
The Boar believes that a moerate level of gearing is an efficient way to enhance long-term shareholer returns, albeit at the cost of a160small increase in short-term volatility. The Boar takes into consieration the cost of borrowing when arranging facilities available to the Manager. The level of gearing is regularly iscusse with the Manager an is ajuste by them, to reflect short-term consierations, within parameters set by the Boar.
In orer that the Managers coul retain the flexibility to maintain gearing up to the maximum permitte level, on 1st October 2021 the borrowing facility with Scotiabank was increase from 16340160million (with an option to increase the commitment by 16310 million) to 1630 million for a perio of 24160months. The current facility will expire on 1st October 2023. There is a further option to increase borrowings to 16360 million subject to certain conitions.
At the year-en, 1632 million (2021: 1633 million) was rawn on the loan facility with the gearing level of .8% (2021: 8.9%) of net assets. As at 12th October 2022, gearing was 7.3%.
Change to Investment Guieline
In July 2022, the Boar announce its ecision to amen the current investment restriction that the Company woul not normally invest more than 0% of its gross assets in AIM stocks. With more small cap companies choosing to list on AIM an fewer moving from AIM to the Main Market of the Lonon Stock Exchange, the Boar agree with its Investment Managers to increase the percentage of assets which the Company can hol in AIM stocks. In aition, reflecting the composition of the Benchmark, it was agree that a minimum holing of AIM stocks relative to the Benchmark be introuce. The amene investment guieline now allows the Company to invest in AIM stocks up to a maximum an minimum exposure limit of +/-20% relative to the Benchmark.
Share Repurchases an Issuance
At last year's Annual General Meeting ('AGM'), shareholers grante the Directors authority to allot new shares an to repurchase the Company's shares for cancellation or to be hel in Treasury for possible re-sale. During the financial year the Company i not repurchase or allot any shares. There are currently 79,611,410 shares in issue, incluing 1,9,741 shares which are hel in treasury an available for reissuance. Treasury shares will only be sol at a premium to net asset value thus enhancing shareholer value.
As in previous years, the Boar's objective is to use the repurchase an allotment authorities to manage imbalances between the supply an eman of the Company's shares, with the intention of reucing the volatility of the iscount or premium, in normal market conitions. To ate the Boar believes this mechanism has been helpful an therefore proposes an recommens that powers to repurchase up to 14.99% of the Company's shares (less shares hel in Treasury) an the allotment of new shares or sale of shares out of Treasury up to approximately 10% as at the ate of the AGM be renewe.
Boar of Directors an Succession Planning
During the year, the Boar, through its Nomination Committee, employe an inepenent boar avisory consultant to facilitate a comprehensive evaluation of the Boar, its committees, the iniviual Directors an the Chairman. Their report confirme the efficacy of the Boar.
Frances Davies will retire from the Boar at the AGM in December 2022. She joine the Boar in March 2013 an has mae a significant contribution to the performance of the Company. On behalf of the Boar, I woul like to thank Frances for her contribution to the Company over the years. As you are aware, Frances is also Chairman of the Remuneration Committee an Senior Inepenent Director an following her retirement Alice Ryer will take over these roles.
As part of succession planning, the Boar appointe Katrina Hart in June 2022. Katrina has longstaning financial markets expertise an extensive Boar experience. She brings a wealth of experience to the Boar, gaine from her roles in corporate finance an equity research an, subsequently, her involvement as a Non-Executive Director of both investment trusts an asset management companies. The Boar believes Katrina will be a valuable aition to the Boar an therefore recommen that shareholers vote in favour of her appointment at the forthcoming AGM.
In accorance with goo corporate governance practice, all the other Directors will stan for reappointment at the forthcoming AGM.
Environment, Social an Governance (ESG) consierations
The Boar shares the Investment Managers' view of the importance of ESG factors when making investments for the long term an of the necessity of continue engagement with investee companies throughout the uration of the investment. The Investment Managers' report escribes the evelopments in the ESG process that have taken place uring the year together with examples of how these are implemente in practice. Further information on the Manager's ESG process an engagement is set out in the ESG Report section within the Annual Report.
Annual General Meeting
We are elighte that this year we will once again be able to invite shareholers to join us in person for the Company's thirty-secon Annual General Meeting ('AGM') to be hel at 60 Victoria Embankment, Lonon EC4Y 0JP on th December 2022 at 3.00 p.m. The Boar hopes to welcome as many shareholers as possible.
As with previous years, you will have the opportunity to hear from the Investment Managers an their presentation will be followe by a question an answer session. Shareholers wishing to follow the AGM proceeings but choosing not to atten will be able to view them live an ask questions through conferencing software. Details on how to register together with access etails can be foun on the Company's website: www.jpmuksmallercompanies.co.uk, or by contacting the Company Secretary at invtrusts.cosec@jpmorgan.com.
In accorance with normal practice, all voting on the resolutions will be conucte on a poll. Due to technological reasons, shareholers viewing the meeting via conferencing software will not be able to vote on the poll an we therefore encourage all shareholers, an particularly those who cannot atten physically, to submit their proxy votes in avance of the meeting, so that they are registere an recore at the AGM. Proxy votes can be loge in avance of the AGM either by post or electronically: etaile instructions are inclue in the Notes to the Notice of Annual General Meeting in the Annual Report. In aition, shareholers are encourage to sen any questions ahea of the AGM to the Boar via the Company Secretary at the email aress above. We will eneavour to answer relevant questions at the meeting or via the website epening on arrangements in place at the time.
If there are any changes to the above AGM arrangements, the Company will upate shareholers through the Company's website an, as appropriate, through an announcement on the Lonon Stock Exchange.
Outlook
As we anticipate in the interim outlook, the invasion of Ukraine has ha a etrimental effect on orinary citizens across the globe an particularly those that are less well off. However, we i not anticipate the severity of the cost of living crisis an the level of government support that woul be necessitate. Governments an policy makers are having to grapple with an unusually uncertain an complex set of economic an geopolitical situations which are requiring a significant re-evaluation of the globalisation of previous ecaes an the source of supply of essential commoities an goos. Many of these issues will take a number of years to resolve but in the short-term the very real cost of living crisis riven by inflation an interest rate increases not previously experience by many nees to be aresse. This is particularly so in the UK where immeiate an significant intervention is require to alleviate the prospect of 'sticky inflation' riven by a wage/price spiral an the amage cause by the expectation of further inflation.
Following the recent change of Prime Minister, her new Chancellor's mini buget has cause turmoil in the UK markets. Whilst the esire to make a ramatic an immeiate impact on the UK economy an ai those suffering from the rising cost of living is unerstanable, the manner in which it has been one is not. The poor communication, lack of obvious consultation with the Bank of Englan an absence of inepenent guiance from the OBR has le to a significant loss of investor confience reflecte in crashing bon prices, equities an the value of sterling. The public criticism from the International Monetary Fun is almost unpreceente an oes not ai government creibility. The government's cost of borrowing, as reflecte in sharply rising gilt yiels (falling prices), has ramatically increase as investors eman a premium for financing UK plc. The Bank of Englan has been set at os with the government as it attempts to counter the potential inflationary effects of the current government policy, weakene sterling an high gilt yiels. The Bank has alreay intervene in bon markets, attempting to lower yiels by buying gilts, an will almost certainly have to increase the base rate further than previously anticipate. This will cause a significant increase in mortgage payments an put pressure on property valuations all to the etriment of the embattle consumer. In160short, the outlook is as uncertain as it has been in a long time an we an the Managers anticipate continue, significant volatility in markets.
The share prices of UK omestic an smaller companies have been hit har in actual an relative terms in anticipation of uncertainty an the challenging outlook for the UK. As previously mentione, this has require a significant re-appraisal of the construction of the Company's portfolio as the managers aapt to the rapily changing environment that we fin ourselves in. We are fortunate to have very experience Managers who are working har to preserve an grow shareholers' assets an their success in oing so is evient in their impressive long term recor of outperformance.
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Anrew Impey
Chairman160160160 160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160 14th October 2022
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INVESTMENT MANAGERS' REPORT
Performance an Market Backgroun
The Company's financial year to July 2022 was ominate in the first half by COVID-19. As the vaccines took effect, the country starte to re-open, only for the Omicron variant to re-awaken fears towars the en of 2021. As expecte, in December 2021 the Bank of Englan (BoE) raise rates for the first time since the COVID-inuce reuction to 0.1 %. As we entere 2022, the picture looke more positive, espite160concerns over the impact of rising inflation an rising interest rates from their historic low. Forecasts at that time were for a continue strong reboun in GDP growth of approximately 4.% in 2022 as the economy continue to recover, an inflation was expecte to peak in April at aroun 6%. Events clearly intervene, with the Russian invasion of Ukraine upening these forecasts as the increasing cost160of staples an energy rove inflation expectations significantly higher. As bills rose an wages faile to keep pace, the cost of living pressures escalate for many househols. In aition, on-going logistic bottlenecks an constraine labour supply ae to inflationary pressures for corporates. The BoE continue to raise interest rates in an attempt to combat inflation, an they ene our financial year at 1.2%.
Against this very testing backrop, the Numis Smaller Companies plus AIM (ex Investment Companies) Inex ecline by 16% in the year. Disappointingly, the Company prouce a ecline in net assets of 23.8%. The share price total return was -26.1%, as the iscount of the share price relative to net assets wiene, ue to a sell-off in the more omestically focuse smaller companies arena in the light of the economic outlook.
Portfolio
A number of our largest positions continue to perform strongly, among them OSB (formerly known as OneSavings Bank), Alpha FX, Ergome an Serica. OSB specialises in lening to professional lanlors in the UK market, benefitting from rate increases an growing strongly through market share gains an refinancing activity. It has also initiate a buyback of shares as it has significant excess capital on its balance sheet. The high growth company Alpha FX, which provies currency solutions for corporates, has again outperforme market expectations an is continuing to expan its operations outsie the UK. Ergome, a provier of services to the pharmaceutical inustry, continues to emonstrate its resilient business moel an its expansion into the US is bearing fruit as pharmaceuticals continue to outsource specialist activities, while Serica, a North Sea gas proucer, is a beneficiary of high gas prices an was also subject to a160takeover approach.
However, these successes were not enough to outweigh the etractors in the portfolio. These inclue Halfors, Reach, Victorian Plumbing, Luceco an Joules, all of which were exite in the year as the unerlying performance of the businesses ecline. The three retailers, Halfors (car parts an bicycles), Victorian Plumbing (bathroom relate proucts) an Joules (clothing), suffere from poor sales an inventory issues. Luceco, a proucer of LED bulbs an electrical accessories, face ifficult en markets as a supplier into the DIY chains. The national an regional news publisher Reach isappointe as its progress in expaning into igital meia unexpectely slowe, an in its traitional newspapers it suffere from rising newsprint costs.
Aitionally, the share prices of a few of our largest positions such as Future, Dunelm an Games Workshop ecline precipitously as the market e-rate these consumer expose names, espite a160notable lack of earnings owngraes from company guiance. With hinsight, we were slow to react, as our analysis of the specific outcome for these iniviual companies was very much counter to the market perception. While we i reuce the sizing in these positions, the magnitue of the market e-ratings has le us to maintain holings in the above names, given their current valuations an long-term prospects.
That sai, we have of course mae a number of significant changes to the portfolio in 2022, given the160ramatic change in outlook over the year for inflation, consumer confience an interest rate expectations. Among the many changes to the portfolio, we have increase our energy exposure with new positions in Ashtea Technology (a recent IPO which provies subsea rental equipment to the global offshore energy sector), Hunting (oil services) an Energean (gas proucer) an ae to our holing in Serica (oil an gas proucer). Other new aitions inclue FRP Avisory Group (insolvency/ebt avisory company) an HT (pawn-broker), which shoul be well-positione in these ifficult economic times, an more efensive names such as Wilmington (professional services) an Telecom Plus (a utility provier). On the other sie, we have significantly reuce our consumer exposure as the outlook has arkene. Among the exits from the portfolio are Saga, Marston's, Moonpig, Curry's, Rank an Restaurant Group.
Overall as can be seen from a number of our sales in the year, we have significantly reuce our exposure to the UK consumer. However we also believe that a number of consumer-facing companies will weather the economic ownturn well an continue to take market share we strongly believe this is not reflecte in their current share prices. We continue to remain overweight to the UK (an the USA), in unerlying revenue terms, relative to our benchmark. We also reuce our gearing an pai own 16310160million of our ebt uring the secon half of the year as the economic backrop eteriorate. In navigating these uncharte waters we have eneavoure to position the portfolio to have a balance between structural growth companies an cheap 'recovery' names the portfolio compares favourably with the benchmark on all our key metrics, which will hopefully serve us well when market sentiment shifts.
Outlook
As we write this report, we have a new Prime Minister. There are too many unanswere questions to enumerate at this time but it seems clear that her absolute priority is to help UK citizens an UK companies to eal with the energy price crisis, which woul otherwise threaten to overwhelm many. Among the many things we o not know, key questions inclue: How long will energy costs remain elevate? How much will the propose energy cap cost the UK? While it will lower inflation in the short term, will it prove of itself to be inflationary? When will the Russian war with Ukraine en? Will there be gas shortages in Europe an the UK this winter? How high will interest rates nee to go? The answers to these questions will have a irect impact on the looming recession in the UK - small an short, or long an severe, as suggeste by the recent Bank of Englan forecast.
Our present view is that there is likely to be a recession in the UK in 2023. Currently, key metrics in the UK such as employment levels, PMIs (purchasing manager inices), the housing market an retail sales are all holing up to a greater or lesser extent - an inee that is the message we are receiving from talking to our companies. However, both we an they are obviously aware of the many risks on the horizon. These inclue significantly higher interest rates, higher mortgage rates impacting the consumer an house prices, inflation remaining elevate for longer an the impact of sterling's evaluation. But the key metric we are focusing on is inflation, an in particular a fall in core inflation. If this eventually starts to emerge, then we believe stock markets will start to rally. If history provies a160reliable guie, markets will rally prior to the GDP ata turning more positive.
The last year has been a painful one for all investors. However, we believe that the structural rivers that have riven the superior performance in the small cap arena over longer time frames have not change. Over the last many years we have seen perios of extreme volatility an rawowns, such as we experience uring the Brexit referenum an the onset of COVID, an now once again in 2022, when the omestic UK market has fallen ramatically out of favour. These have proven historically to be very avantageous buying opportunities in this area of the market, an we o not believe this will prove to be ifferent in this economically challenging time.
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Georgina Brittain
Katen Patel
Investment Managers160160160 160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160160 14th October 2022
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PRINCIPAL AND EMERGING RISKS
The Directors confirm that they have carrie out a robust assessment of the principal an emerging risks facing the Company, incluing those that woul threaten its business moel, future performance, solvency or liquiity. The risks ientifie an the ways in which they are manage or mitigate are summarise below.
With the assistance of the Manager, the Boar has complete a robust risk assessment an rawn up a risk matrix, which ientifies the key risks to the Company. The risks ientifie an the broa categories in which they fall, an the ways in which they are manage or mitigate are summarise below. The AIC Coe of Corporate Governance requires the Auit Committee to put in place proceures to ientify emerging risks. At each meeting, the Boar consiers emerging risks which it efines as potential trens, suen events or changing risks which are characterise by a high egree of uncertainty in terms of occurrence probability an possible effects on the Company. As the impact of emerging risks is unerstoo, they may be entere on the Company's risk matrix an mitigating actions consiere as necessary. At present, no key emerging risks have been ientifie by the Boar.
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TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
Details of the management contract are set out in the Directors' Report in the Annual Report. The management fee payable to the Manager for the year was 1632,492,000 (2021: 1632,116,000) of which 163nil (2021: 163nil) was outstaning at the year en.160160160
During the year 163nil, incluing VAT, was payable to (2021: 163nil) the Manager for the aministration of savings scheme proucts, of which 163nil (2021: 163nil) was outstaning at the year en
Inclue in aministration expenses in note 6 in the Annual Report are safe custoy fees amounting to 1636,000 (2021: 1634,000) payable to JPMorgan Chase of which 1631,000 (2021: 1633,000) was outstaning at the year en.
The Manager may carry out some of its ealing transactions through group subsiiaries. These transactions are carrie out at arm's length. The commission payable to JPMorgan Securities Limite for the year was 163nil (2021: 1632,000) of which 163nil (2021: 163nil) was outstaning at the year en.
The Company also hols cash in the JPMorgan Sterling Liquiity Fun, which is manage by JPMorgan. At the year en this was value at 1639.4 million (2021: 1632.8 million). Interest amounting to 1630,000 (2021: 1633,000) was receivable uring the year of which 163nil (2021: 163nil) was outstaning at the year en.
Hanling charges on ealing transactions amounting to 1639,000 (2021: 16313,000) were payable to JPMorgan Chase uring the year of which 1632,000 (2021: 16310,000) was outstaning at the year en.
At the year en, total cash of 163294,000 (2021: 16320,000) was hel with JPMorgan Chase. A net amount of interest of 163nil (2021: 163nil) was receivable by the Company uring the year from JPMorgan Chase of which 163nil (2021: 163nil) was outstaning at the year en.
Full etails of Directors' remuneration an shareholings can be foun in the Annual Report.
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STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report an Financial Statements in accorance with applicable law an regulations.
Company law requires the Directors to prepare financial statements for each financial year. Uner that law the Directors have electe to prepare the financial statements in accorance with Unite Kingom Generally Accepte Accounting Practice (Unite Kingom Accounting Stanars), comprising FRS 102 'The Financial Reporting Stanar applicable in the UK an Republic of Irelan' an applicable law). Uner company law the Directors must not approve the financial statements unless they are satisfie that, taken as a whole, the annual report an accounts are fair balance an unerstanable an provie the information necessary, for shareholers to assess the Company's performance, business moel an strategy, an that they give a160true an fair view of the state of affairs of the Company an of the total return or loss of the Company for that perio. In preparing these financial statements, the Directors are require to:
8226160160160160160160160 select suitable accounting policies an then apply them consistently
8226160 160 160state whether applicable UK Accounting Stanars, comprising FRS 102, have been followe, subject to any material epartures isclose an explaine in the financial statements
8226160 160 160 160 160 make jugments an accounting estimates that are reasonable an pruent an
8226160 160 160160160prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business
an the Directors confirm that they have one so.
The Directors are responsible for keeping aequate accounting recors that are sufficient to show an explain the Company's transactions an isclose with reasonable accuracy at any time the financial position of the Company an enable them to ensure that the financial statements an the Directors' Remuneration Report comply with the Companies Act1602006. They are also responsible for safeguaring the assets of the Company an hence for taking reasonable steps for the prevention an etection of frau an other irregularities.
The accounts are publishe on the www.jpmuksmallercompanies.co.uk website, which is maintaine by the Company's Manager. The maintenance an integrity of the website maintaine by the Manager is, so far as it relates to the Company, the responsibility of the Manager. The work carrie out by the auitor oes not involve consieration of the maintenance an integrity of this website an, accoringly, the auitor accepts no responsibility for any changes that have occurre to the Annual Report since it was initially presente on the website. The Annual Report is prepare in accorance with UK legislation, which may iffer from legislation in other jurisictions.
Uner applicable law an regulations the Directors are also responsible for preparing a Strategic Report, a Directors' Report an a Directors' Remuneration Report that comply with that law an those regulations.
Each of the Directors, whose names an functions are liste in Directors' Report confirm that, to the best of their knowlege:
8226 160 160 160 the Company's financial statements, which have been prepare in accorance with Unite Kingom Generally Accepte Accounting Practice (Unite Kingom Accounting Stanars, comprising FRS 102 'The Financial Reporting Stanar applicable in the UK an Republic of Irelan', an applicable law), give a true an fair view of the assets, liabilities, financial position an profit of the Company an
8226160160160160160160160 the Strategic Report inclues a fair review of the evelopment an performance of the business an the position of the Company, together with a escription of the principal risks an uncertainties that it faces.
The Boar confirms that it is satisfie that the Annual Report an Financial Statements taken as a whole is fair, balance an unerstanable an provies the information necessary for shareholers to assess the Company's performance, business moel an strategy.
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For an on behalf of the Boar
Anrew Impey
Chairman
14th October 2022
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FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
For the year ene 31st July 2022
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A final ivien of 6.9p per share (2021: .7p per share) is propose in respect of the year ene 31st July 2022 amounting to 163,386,000 (2021: 1634,449,000).
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All revenue an capital items in the above statement erive from continuing operations. No operations were acquire or iscontinue in the year.
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The 'Total' column of this statement is the profit an loss account of the Company an the 'Revenue' an 'Capital' columns represent supplementary information prepare uner guiance issue by the Association of Investment Companies. Net return/(loss) after taxation represents the profit/(loss) for the year an also Total Comprehensive Income.
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STATEMENT OF CHANGES IN EQUITY
For the year ene 31st July 2022
1160160160160 These reserves form the istributable reserves of the Company an may be use to fun istribution of profits to investors.
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STATEMENT OF FINANCIAL POSITION
At 31st July 2022
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STATEMENT OF CASH FLOWS
For the year ene 31st July 2022
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NOTES TO THE FINANCIAL STATEMENTS
For the year ene 31st July 2022
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1.160160160160160160 Accounting policies
160160160160160160160160160 Basis of accounting
The financial statements are prepare uner the historical cost convention, moifie to inclue fixe asset investments at fair value, an in accorance with the Companies Act 2006, Unite Kingom Generally Accepte Accounting Practice ('UK160GAAP'), incluing FRS 102 'The Financial Reporting Stanar applicable in the UK an Republic of Irelan' an with the Statement of Recommene Practice 'Financial Statements of Investment Trust Companies an Venture Capital Trusts' (the160'SORP') issue by the Association of Investment Companies in April 2021. In preparing these financial statements the Directors have consiere the impact of climate change risk as a principal risk an have conclue that it oes not have a material impact on the Company's investments. In line with FRS 102 investments are value at fair value, which for the Company are quote bi prices for investments in active markets at the 31st July 2022 an therefore reflect market participants view of climate change risk.
The financial statements have been prepare on a going concern basis. In forming this opinion, the irectors have consiere the potential impact of the ongoing COVID-19 panemic an other market strains on the going concern an viability of the Company, incluing the mitigation measures which key service proviers, incluing the Manager, have in place to maintain operational resilience, particularly in light of COVID-19. The Directors have reviewe the compliance with loan covenants in assessing the going concern an viability of the Company an other market strains. The Directors have reviewe income an expense projections to 31st October 2023 an the liquiity of the investment portfolio in making their assessment.
The policies applie in these financial statements are consistent with those applie in the preceing year.
2.160160160160160160 Return/(loss) per share
160
3.160 160160160160 Diviens
(a)160160160160 Diviens pai an propose
All iviens pai an propose in the perio have been an will be fune from the revenue reserve.
The ivien propose in respect of the year ene 31st July 2022 is subject to shareholer approval at the forthcoming AGM. In accorance with the accounting policy of the Company, this ivien will be reflecte in the financial statements for the year ening 31st July 2023.
(b)160160160 Divien for the purposes of Section 118 of the Corporation Tax Act 2010 ('Section 118')
The requirements of Section 118 are consiere on the basis of iviens eclare in respect of the financial year, shown below. The revenue available for istribution by way of ivien for the year is 1636,1,000 (2021: 1633,418,000). The revenue reserve after payment of the final ivien will amount to 1632,034,000 (2021: 163869,000).
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4.160160160160160160160160160160 Net asset value per share
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.160160160160 Status of results announcement
2021 Financial Information
The figures an financial information for 2021 are extracte from the Annual Report an Financial Statements for the year ene 31st July 2021 an o not constitute the statutory accounts for the year. The Annual Report an Financial Statements has been elivere to the Registrar of Companies an inclue the Report of the Inepenent Auitors which was unqualifie an i not contain a statement uner either section 498(2) or section 498(3) of the Companies Act 2006.
2022 Financial Information
The Figures an financial information for 2022 are extracte from the publishe Annual Report an Financial Statements for the year ene 31st July 2022 an o not constitute the statutory accounts for that year. The Annual Report an Financial Statements inclues the Report of the Inepenent Auitors which is unqualifie an oes not contain a statement uner either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report an Financial Statements will be elivere to the Register of Companies in ue course.
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Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporate into, or forms part of, this announcement.
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14th October 2022
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For further information:
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Lucy Dina
JPMorgan Funs Limite
020 7742 4000
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ENDS
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A copy of the 2022 Annual Report will shortly be submitte to the FCA's National Storage Mechanism an will be available for inspection at https://ata.fca.org.uk//nsm/nationalstoragemechanism
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The 2022 Annual Report will shortly be available on the Company's website at www.jpmuksmallercompanies.co.uk where up-to-ate information on the Company, incluing aily NAV an share prices, factsheets an portfolio information can also be foun.
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JPMORGAN FUNDS LIMITED
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