Manchester&lon. Regulatory News (MNL)

Manchester and London Investment Trust plc ("MLIT" or the "Company") ANNOUNCEMENT OF THE UNAUDITED INTERIM GROUP RESULTSFor the six months ended 31 January 2015 The Directors announce the unaudited interim Company results for the six monthsended 31 January 2015. Trust Performance At At 31 January 31 July Percentage 2015 2014 Change Net assets attributable to Equity Shareholders (£'000) 61,753 64,361 (4.1) Net asset value per ordinary share (p) 285.5 293.2 (2.6) Dow Jones UK Total Stock Market Index 2,973.10 2,953.45 0.7 Interim dividend declared per ordinary share (p) 1.50 5.50 (72.7) Second special dividend per ordinary share (p) 0.25 - 100.0 Ex-dividend date 9 April 2015 Record date 10 April 2015 Payment date 30 April 2015 The price and net asset value is published in the Investment Companies Sectorof The Financial Times. Chairman's Statement Results for the half year ended 31 January 2015 The trust's net asset value per share dropped 2.6 per cent over the period,against a 0.7 per cent increase in the benchmark. This represents anunderperformance of 3.3 per cent. The key contributors to this were poor positioning ahead of November's oilslump and an under exposure to UK centric and smaller capitalisation stocks,which have generally outperformed the rest of the benchmark. Whilst the Investment Manager's underlying model of buying quality global bluechip stocks is unchanged, additional emphasis has been put on buying businessmodels that are aligned with key forward looking trends. NAV performance, since the period end, has been better with an improvement inthe NAV to 296.4p per share which means the fund is now up 1.1 per cent for thefinancial year to date. Dividends As explained last year, we have split our dividend payments to better reflectthe sources of that income. Recurring income from dividends on our underlyingholdings has been paid out as ordinary dividends, whilst non-recurring tradingincome has been paid out as special dividends. We also explained that the exposure constraints created by AIFMD may limit ourability to generate trading income, we have so far managed to pay 2.3p inspecial dividends in respect of this year. With these results we haveannounced a further special dividend per share of 0.25p and an ordinarydividend of 1.50p. These are in addition to the final ordinary dividend of 1.98p and specialdividends of 5.00p and 1.27p already paid in the period in respect of the 2014financial year. Outlook Performance does appear to be improving since the period end. We hope thatthis continues through to the year end. Mr P H A Stanley.ChairmanMarch 2015. Investment Manager's Report Investment Manager's Review Performance Our underperformance over the first half of the year was driven by our sectorexposure to Oil and Gas (contributing a material 4.4 per cent relativeunderperformance), our remaining Mining exposure (contributing a 0.8 per centrelative underperformance) and yet another dismal performance from PZ Cussons(contributing 2.0 per cent relative underperformance). We do not see a quick recovery in the Oil & Gas and Mining sectors and we donot believe they are favourably exposed to key technological trends in the longrun - such as energy efficiency, improving electric vehicles and increasingpolitical weight put behind renewables. Nor do these sectors traditionallyperform well in a low inflationary environment. We were drawn to these sectorsby their seemingly appealing valuation metrics but we now see these as a valuetrap. As a result, we do not currently have a single holding in these twosectors and we are now significantly underweight. Overview We believe that two key challenges have significantly altered the traditionalequity valuation framework. Firstly, technology has rapidly disrupted manybusiness models, turning what were once classic value plays into value traps. Secondly, a global disinflationary environment has squeezed yields to the pointwhere some high quality corporate debt issues have even gone into negativeyield territory. This has a bullish read across for the equity of these "bondproxy" equities even though they may not appear inexpensive against traditionalvaluation metrics. Both these factors have caused large valuation differentials, which may deepenfurther. However, for now, we are no longer tempted by these value plays. We have repositioned in the opposite direction - moving overweight Technology,Healthcare and Consumer stocks (with bond proxy like cash flows). We expect to be close to fully invested for the near future, though we remainhighly vigilant for market volatility. Asset Allocation Review Consumer PZ Cussons has had a challenging 6 months, with FX headwinds and continuedtroubles in Nigeria. We remain attracted by the stock's long term growthpotential and relative valuation to the sector, but the company's reliance onNigeria and the daunting challenges this country still faces clouds theinvestment case. Therefore we have significantly reduced our exposure to PZCussons and may continue to do so in H2. In short, with the Oil and Miningexportation model disrupted, we struggle to see how Africa will progress intothe new global manufacturing hub when power cuts last for a material part ofeach day. Our other consumer stocks have generally performed well. We have tried toposition in high quality consumer brands, with stable cash flows, that couldalso be bid targets. With bonds on these types of stocks hitting historiclows, the equity could have further to run. Stocks of this type includeBeiersdorf, Heineken, Pernod Ricard and SCA. Diageo and Unilever havecontinued to make relatively good progress, however we may trim exposure tothese names in favour of more probable M&A targets. Technology We have been increasing exposure to the sector. Two of our highest convictionstocks in this sector are Google and Apple, which we view as technologyconglomerates with exposure to key themes likely to play out over the next 10years, such as the Internet of Things, Wearable Devices, Driverless Cars andAI. We believe both companies trade at substantial discounts to their sum ofparts. Other stocks that we see as favourably positioned for the futureinclude eBay, ARM Holdings and Baidu. We have 3 fund holdings in the sector - which gives us a broader exposure tokey technological trends such as Robotics and Automation, where pickingindividual winners is more challenging. We remain bullish on Agri-Science and, aside from a CHF revaluation shift,Syngenta has generally performed well. However, 2015 could be challenging forSyngenta and we may trim exposure at the right price. KWS remains a top 15position for us in the sector and we continue to view this as a prime M&Atarget for a larger player looking to increase its Seeds portfolio. We have also taken a small position on 3D Printing, which we view as a keytechnology over the next 10 years. However, the sector is too young andvolatile for us to hold a lot of exposure in the area. Healthcare Smith and Nephew has performed well as takeover rumours have persisted. Wecontinue to see strong logic for an acquisition by Stryker or J&J. Shire has also performed well. Although their takeover by Abbvie fell through,we continue to see this as an attractive M&A target and the stock looksundervalued against the rest of the sector. AstraZeneca was an underperformer. The company is currently going through alower growth period until their pipeline is expected to reinvigorate between2017 and 2023. In the meantime the relative valuation looks attractive, theyield is good and there is a small chance that M&A could come back onto thetable. GlaxoSmithKline is a current Top 15 holding which we believe trades at adiscount to its sum of parts whilst offering an attractive yield. We believethere is a small probability of a break up into the three parts ofpharmaceuticals, vaccines and over-the-counter medicines to release value. Investment PortfolioAs at 31 January 2015 Value % ofCompany Sector £'000 Net Assets PZ Cussons plc Consumer Goods 7,668 12.4 Smith & Nephew plc Health Care 4,430 7.2 Damille Investments II Ltd Financials 3,707 6.0 AstraZeneca plc Health Care 3,557 5.8 Diageo plc Consumer Goods 3,014 4.9 Shire plc Health Care 3,009 4.9 Heineken N.V. Consumer Goods 2,966 4.8 Unilever plc Consumer Goods 2,930 4.8 SpecialitySyngenta AG Chemicals 2,707 4.4 Beiersdorf AG Consumer Goods 2,640 4.3 BG Group plc Oil & Gas 2,612 4.2 Pernod Ricard SA Consumer Goods 2,594 4.2 Apple Inc. Technology 2,544 4.1 Google Inc. Technology 2,458 4.0 SpecialityKWS SAAT AG Chemicals 2,022 3.3 Davide Campari-Milano S.p.A. Consumer Goods 1,800 2.9 Tsingtao Brewery Co., Ltd. Consumer Goods 1,694 2.7 Svenska Cellulosa Aktiebolaget SCA Consumer Goods 1,544 2.5 Polar Capital Technology Trust plc Technology 1,498 2.4 ROBO-STOX Global Robotics and Automation GOUCITS ETF Technology 1,484 2.4 Scottish Mortgage Investment Trust plc Technology 1,441 2.3 Baidu, Inc. Technology 1,290 2.1 eBay Inc. Technology 1,051 1.7 ARM Holdings plc Technology 937 1.5 Stratasys Inc. Technology 771 1.2 Barry Callebaut AG Consumer Goods 743 1.2 3-D Systems Corporation Technology 676 1.1 TOD'S S.p.A. Consumer Goods 621 1.0 Other listed investments (under 1.0%) Various 1,677 2.7 Listed Investments 66,085 107.0 Other Investments 183 0.3 Cash and Net Current Assets (4,515) (7.3) Net Assets 61,753 100.0 Investment Objective The investment objective of the Company is to achieve capital appreciationtogether with a reasonable level of income. Investment Policy Asset allocation The Company's investment objective is sought to be achieved through a policy ofactively investing in a diversified portfolio, comprising UK and overseasequities and fixed interest securities. The Company seeks to invest incompanies whose shares are admitted to trading on a regulated market. However,it may invest in a small number of equities and fixed interest securities ofcompanies whose capital is not admitted to trading on a regulated market.Investment in overseas equities is utilised by the Company to increase therisk diversification of the Company's portfolio and to reduce dependence on theUK economy in addressing the growth and income elements of the Company'sinvestment objective. The Company may invest in derivatives, money market instruments, currencyinstruments, contracts for differences ("CFDs"), futures, forwards and optionsfor the purposes of (i) holding investments and (ii) hedging positions againstmovements in, for example, equity markets, currencies and interest rates. There are no maximum exposure limits to any one particular classification ofequity or fixed interest security. The Company's investments are not limitedto any one industry sector and its current investment portfolio is spreadacross a range of sectors. The Company has no specific criteria regardingmarket capitalisation or credit ratings in respect of investee companies. Risk diversification The Company intends to maintain a relatively focused portfolio, seeking capitalgrowth by investing in approximately 20 to 40 securities. The Company will notinvest more than 15 per cent of the gross assets of the Company at the time ofinvestment in any one security. However, the Company may invest up to 50 percent of the gross assets of the Company at the time of investment in aninvestment company subsidiary, subject always to other restrictions set out inthis investment policy and the Listing Rules. The Company intends to be fully invested whenever possible. However, duringperiods in which changes in economic conditions or other factors so warrant,the Investment Manager may reduce the Company's exposure to one or more assetclasses and increase the Company's position in cash and/or money marketinstruments. Gearing The Company may borrow to gear the Company's returns when the InvestmentManager believes it is in shareholders' interests to do so. The Company'sinvestment policy and the Articles permit the Company to incur borrowing up toa sum equal to two times the adjusted total of capital and reserves. Anychange to the Company's borrowing policy will only be made with the approval ofshareholders by special resolution. The effect of gearing may be achieved without borrowing by investing in a rangeof different types of investments including derivatives. The Company will notenter into any investments which have the effect of increasing the Company'snet gearing beyond the above limit. General In addition to the above, the Company will observe the investment restrictionsimposed from time to time by the Listing Rules which are applicable toinvestment companies with shares listed on the Official List of the UKLA underChapter 15. In accordance with the Listing Rules, the Company will manage and invest itsassets in accordance with the Company's investment policy. Any materialchanges in the principal investment policies and restrictions (as set outabove) of the Company will only be made with the approval of shareholders byordinary resolution. In the event of any breach of the investment restrictions applicable to theCompany, shareholders will be informed of the remedial actions to be taken bythe Board and the Investment Manager by an announcement issued through aRegulatory Information Service approved by the FCA. Benchmark Index Performance is measured against the Dow Jones UK Total Stock Market Index. TheCompany sources index and price data from FactSet Research Systems Inc. Consolidated Statement of Comprehensive IncomeFor the six months ended 31 January 2015 (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31 January 2015 31 January 2014 31 July 2014 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) oninvestmentsat fair value - 14 14 - (7,569) (7,569) - (9,052) (9,052) Trading income 433 - 433 1,050 - 1,050 1,377 - 1,377 Investment income 610 - 610 1,216 - 1,216 2,431 - 2,431 Gross return 1,043 14 1,057 2,266 (7,569) (5,303) 3,808 (9,052) (5,244) Expenses Management fee (158) - (158) (185) - (185) (348) - (348) Transaction costs (178) - (178) (39) - (39) (170) - (170) Other expenses (87) - (87) (127) - (127) (234) - (234) Total expenses (423) - (423) (351) - (351) (752) - (752) Finance costs (32) (119) (151) - (183) (183) (1) (298) (299) Profit/(loss)before tax 588 (105) 483 1,915 (7,752) (5,837) 3,055 (9,350) (6,295) Taxation - - - - - - - - - Profit/(loss)attributableto equityshareholders 588 (105) 483 1,915 (7,752) (5,837) 3,055 (9,350) (6,295) Earnings/(loss)per share (p) 2.70 (0.48) 2.22 8.53 (34.52) (25.99) 13.63 (41.71) (28.08) The total column of this statement represents the Group's Statement ofComprehensive Income, prepared in accordance with IFRS. The supplementaryrevenue and capital return columns are both prepared under guidance publishedby the Association of Investment Companies. All items in the above statement are derived from continuing operations. Consolidated Statement of Changes in EquityFor the six months ended 31 January 2015 Unaudited Six months ended 31 January 2015 Capital Capital Share Share Treasury Other Reserve Reserve Retained Capital Premium Shares Reserves Unrealised Realised Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 August 5,614 35,132 (1,306) (79) 15,239 5,906 3,855 64,3612014 Total comprehensive - - - - - - 483 483profit Buybacks of - - (786) - - - - (786)ordinary shares Transfer of capital - - - - (4,791) 4,686 105 -losses Total dividends - - - - - - (2,305) (2,305)paid 5,614 35,132 (2,092) (79) 10,448 10,592 2,138 61,753 Unaudited Six months ended 31 January 2014 Capital Capital Share Share Treasury Other Reserve Reserve Retained Capital Premium Shares Reserves Unrealised Realised Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 August 5,614 35,132 - (79) 5,596 24,899 3,888 75,0502013 Total comprehensiveloss - - - - - - (5,837) (5,837) Transfer of profitrealised onprevious transfers - - - - 3,165 (3,165) - - Transfer of capital - - - - (3,240) (4,512) 7,752losses - Ordinary dividend - - - - - - (1,853)paid (1,853) 5,614 35,132 - (79) 5,521 17,222 3,950 67,360 Audited Year ended 31 July 2014 Capital Capital Share Share Treasury Other Reserve Reserve Retained Capital Premium Shares Reserves Unrealised Realised Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 August 5,614 35,132 - (79) 5,596 24,899 3,888 75,0502013 Total comprehensive - - - - - - (6,295) (6,295)loss Buybacks of - - (1,306) - - - - (1,306)ordinary shares Transfer of capital - - - - 9,643 (18,993) 9,350 -losses Ordinary dividend - - - - - - (3,088) (3,088)paid 5,614 35,132 (1,306) (79) 15,239 5,906 3,855 64,361 Consolidated Statement of Financial PositionAs at 31 January 2015 Restated (Unaudited) (Unaudited) (Audited) 31 January 31 January 31 July 2015 2014 2014 £'000 £'000 £'000 Non-current assets Investments held at fair value through profit and loss 28,313 68,736 45,664 28,313 68,736 45,664 Current assets Unrealised derivative financial assets 2,669 2,110 291 Trade and other receivables 23 10 100 Cash and cash equivalents 33,454 14,617 19,625 36,146 16,737 20,016 Gross assets 64,459 85,473 65,680 Current liabilities Unrealised derivative financial liabilities (2,569) (9,731) (1,185) Borrowings - (8,220) - Trade and other payables (137) (162) (134) (2,706) (18,113) (1,319) Net assets 61,753 67,360 64,361 Equity attributable to equity holders Ordinary share capital 5,614 5,614 5,614 Shares held in treasury (2,092) - (1,306) Share premium 35,132 35,132 35,132 Capital reserves 21,040 22,743 21,145 Goodwill reserve (79) (79) (79) Retained earnings 2,138 3,950 3,855 Total equity shareholders' funds 61,753 67,360 64,361 Net asset value per share (p) 285.5 299.9 293.2 Consolidated Statement of Cash FlowsFor the six months ended 31 January 2015 (Unaudited) (Unaudited) (Audited) 31 January 31 January 31 July 2015 2014 2014 £'000 £'000 £'000 Cash flow from operating activities Profit/(loss) after tax 483 (5,837) (6,295) Interest paid 151 183 299 Losses on investments 3,298 2,231 2,208 Decrease in receivables 77 180 90 Increase/(decrease) in payables 3 (1,214) (49) Increase in derivative financial instruments (994) (2,667) (10,587) Net cash generated from/(used in) operating 3,018 (7,124) (14,334)activities Cash flow from investing activities Purchase of investments (25,564) (12,457) (35,015) Sale of investments 39,617 17,179 62,832 Net cash generated from investing activities 14,053 4,722 27,817 Cash flow from financing activities Equity dividends paid (2,305) (1,853) (3,088) Buybacks of ordinary shares (786) - (1,306) Repaid to loan facility - (2,747) (10,967) Interest paid (151) (183) (299) Net cash used in financing activities (3,242) (4,783) (15,660) Net increase/(decrease) in cash and cashequivalents 13,829 (7,185) (2,177) Cash and cash equivalents at the beginning ofthe period 19,625 21,802 21,802 Cash and cash equivalents at the end of theperiod 33,454 14,617 19,625 Notes to the Group Results 1. Accounting policies The interim report and condensed consolidated financial statements have beenprepared in accordance with IAS 34 "Interim Financial Reporting". They do notinclude all disclosures that would otherwise be required in a complete set offinancial statements and should be read in conjunction with the consolidatedfinancial statements for the year ended 31 July 2014. The accounting policiesare consistent with the preceding annual accounts. The results are based on unaudited Group consolidated accounts prepared underthe historical cost basis except where International Financial ReportingStandards ("IFRS") require an alternative treatment. 2. Comparative information The financial information contained in this interim report does not constitutestatutory accounts and, in addition, those relating to the six month periods to31 January 2014 and 31 January 2015 have not been audited. In 2014 the Groupamended its presentation of derivatives to improve reporting alignment toindustry standards. The financial information for the year ended 31 July 2014 has been extractedfrom the latest published audited accounts which have been filed with theRegistrar of Companies and prepared under IFRS. The report of the auditors onthose accounts contained no qualification or statement under the provisions ofthe Companies Act 2006. 3. Significant accounting policies Investments held at fair value through profit or loss are initially recognisedat fair value. As the entity's business is investing in financial assets witha view to profiting from their total return in the form of interest, dividends,or increases in fair value, listed equities and fixed income securities aredesignated as at fair value through profit or loss on initial recognition. Theentity manages and evaluates the performance of these investments on a fairvalue basis in accordance with its investment strategy, and information aboutthe Group is provided internally on this basis to the entity's key managementpersonnel. After initial recognition, investments which are classified as fair valuethrough profit and loss are measured at fair value. Gains or losses oninvestments designated as fair value through profit or loss are included in netprofit or loss as a capital item, and material transaction costs on acquisitionand disposal of investments are expensed and included in the revenue column ofthe income statement. For investments that are actively traded in organisedfinancial markets, fair value is determined by reference to the Stock Exchangequoted market bid prices or last traded prices, depending upon the conventionof the exchange on which the investment is quoted, at the close of business atthe end of the reporting period. In respect of unquoted investments, or where the market for a financialinvestment is not active, fair value is established by using an appropriatevaluation technique. Where a reliable fair value cannot be estimated for suchunquoted equity instruments, they are carried at cost, subject to any provisionfor impairment. All purchases and sales of investments are recognised on thetrade date i.e. the date that the Group commits to purchase or sell an asset. Dividend income from investments is recognised as income when the shareholders'rights to receive payment has been established, normally the ex-dividend date.When special dividends are received, the underlying circumstances are reviewedon a case by case basis in determining whether the amount is capital, orincome, or a mixture of both, in nature. Amounts recognised as income willform part of the Company's distribution. 4. Principal risks and uncertainties The principal risks and uncertainties associated with the Company's businessfall into the following categories: financial risk; strategic risk; andaccounting, legal and regulatory risk. A detailed explanation of the risks anduncertainties in each of these categories can be found in the Company'spublished Annual Report and Accounts for the year ended 31 July 2014. 5. Directors' responsibilities The Directors (P H A Stanley, D Harris and B Miller, all of whom arenon-executive) are of the opinion that it is appropriate to continue to adoptthe going concern basis in accordance with the FRCs "Going Concern andLiquidity Risk: Guidance for Directors of UK Companies 2009" in the preparationof the accounts as the assets of the Company consist predominantly ofsecurities that are readily realisable and, accordingly, the Company hasadequate financial resources to continue in operational existence for theforeseeable future. The Directors confirm that, to the best of their knowledge, this set ofcondensed financial statements has been prepared in accordance with IAS 34"Interim Financial Reporting". Where presentational guidance, set out in the Statement of Recommended Practice("SORP") for investment trusts revised by the Association of InvestmentCompanies ("AIC"), is inconsistent with the requirements of IFRS, the Directorshave sought to prepare the financial statements on a basis compliant with therecommendations of the SORP. The Interim Management Report, in the form of the Chairman's Statement andInvestment Manager's Review, includes a fair review of the information requiredby DTR 4.2.7 and 4.2.8 of the FCA's Disclosure and Transparency Rules. 6. Related party Midas Investment Management Limited ('Midas'), a company controlled by Mr. M.Sheppard, acts as Investment Manager to the Company. Details of the feearrangements are given in note 7. Mr. M. Sheppard is also a director of theparent company of Manchester and London Investment Trust plc. 7. Related party transactions The management fee charged by Midas is payable quarterly in arrears and isequal to 0.5 per cent of the Net Asset Value of the Group on an annualisedbasis. Investment management fees are charged to revenue. Additional fees charged by Midas include a monthly financial advisory fee andcommissions on the purchase and sale of investments. Monthly company secretarial and office administration costs incurred by theparent company, M&M Investment Company plc, on behalf of the Company were alsorecharged to the Company in the period. There are no other related party transactions. In accordance with DTR 4.2.9(2) of the UK Disclosure and Transparency Rules(DTRs), it is confirmed that this publication has not been audited by auditorspursuant to the Auditing Practices Board (APB) guidance on Review of InterimFinancial Information, but has been reviewed by the auditors pursuant to theAPB's guidance on Review of Interim Financial Information. Responsibility Statement We confirm that to the best of our knowledge: a) the condensed set of financial statements has been prepared in accordance withIAS 34 'Interim Financial Reporting'; b) the interim report includes a fair review of the information required by DTR4.2.7R (indication of important events during the first six months anddescription of principal risks and uncertainties for the remaining six monthsof the year); and c) the interim report includes a fair review of the information required by DTR4.2.8R (disclosure of related party transactions and changes therein). Mr D HarrisChairman of Audit Committee Independent Review Report to Manchester & London Investment Trust plc Introduction We have been engaged by the Company to review the condensed set of financialstatements in the half-yearly financial report for the six months ended 31January 2015 which comprise the Consolidated Statement of Comprehensive Income,the Consolidated Statement of Changes in Equity, the Consolidated Statement ofFinancial Position, the Consolidated Statement of Cash Flows and the relatedcondensed notes. We have read the other information contained in thehalf-yearly financial report and considered whether it contains any apparentmisstatements or material inconsistencies with the information in the condensedset of financial statements. This report is made solely to the Company in accordance with InternationalStandard on Review Engagements (UK and Ireland) 2410 "Review of InterimFinancial Information Performed by the Independent Auditor of the Entity"issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the Company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone otherthan the Company, for our review work, for this report, or for the conclusionswe have formed. Directors' Responsibilities The half-yearly financial report is the responsibility of, and has beenapproved by, the directors. The directors are responsible for preparing thehalf-yearly financial report in accordance with the Disclosure and TransparencyRules of the United Kingdom's Financial Conduct Authority. The condensed set of financial statements included in this half-yearlyfinancial report has been prepared in accordance with International AccountingStandard 34, "Interim Financial Reporting", as adopted by the European Union. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview. Scope of Review We conducted our review in accordance with International Standard on ReviewEngagements (UK & Ireland) 2410, "Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity" issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making inquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK & Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us tobelieve that the condensed set of financial statements in the half-yearlyfinancial report for the six months ended 31 January 2015 is not prepared, inall material respects, in accordance with International Accounting Standard 34as adopted by the European Union and the Disclosure and Transparency Rules ofthe United Kingdom's Financial Conduct Authority. CLB Coopers, Statutory Auditors and Chartered Accountants, Manchester.30 March 2015 This Half Yearly Report was approved by the Board on 30 March 2015. Copies of the Half-Yearly Financial Report for the six months ended 31 January2015 will be available from the Company's registered office at 2nd Floor,Arthur House, Chorlton Street, Manchester, M1 3FH, as well as on the Company'swebsite at www.manchesterandlondon.co.uk. For enquiries: Manchester and London Investment Trust plcMichael Kurt CampCompany SecretaryTel: 0161 228 2389 Midas Investment Management LimitedMark SheppardInvestment ManagerTel: 0161 228 1709