27 Sep 2017 10:30
27 September 2017
Terra Capital Plc ('Terra' or 'the Fund')
Interim Results
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Terra Capital Plc, the AIM quoted investment company focussed on investing in value opportunities globally, primarily in frontier markets, announces interim results for the six month period ended 30 June 2017.
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The Company undertakes its activities in line with its strategy to provide high absolute returns by investing in under-evaluated companies which present significant deep value opportunities. Due to market inefficiencies, the Fund and its Investment Manager, Terra Partners Asset Management Limited believe that frontier markets provide many such prospects.
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For more information, please visit www.terracapitalplc.com or contact:
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Galileo Fund Services Limited (Administrator)
Frazer Pickering
+44 1624 692600
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Panmure Gordon (UK) Limited (Nominated adviser and corporate broker)
Paul Fincham or Jonathan Becher
+44 20 7886 2500
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Terra Capital plc.
Ian Dungate, Director
+44 1624 692600
NOTES
Terra Capital plc is an AIM quoted investment trust focussed on generating high absolute returns while ensuring volatility is kept to a minimum. The fund predominantly invests in under-researched and under-valued companies. The Fund Manager targets companies that are trading at less than their intrinsic worth and so, aside from any potential growth prospects, provide scope for capital appreciation as a result of a reversion towards underlying value. Investments are also made in companies which are viewed as fair value but offer opportunities for growth at a reasonable price. Due to inherent market inefficiencies, the Investment Manager believes many such 'value' opportunities can be found in Frontier Markets and utilises in-house teams of analysts on the ground in areas of interest to investigate suitable opportunities rather than rely on third party research. Â
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Chairman's Statement
The Net Asset Value at 30 June 2017 stood at $1.085 against $1.016 at the end of 2016. This NAV represents a total return for the six month period of 6.79%.
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The Company's holdings at June 30 comprised 57 positions with exposure to 26 currencies and continues to perform well.
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In accordance with the revisions to the discount control policy approved by shareholders in 2015, a tender offer was undertaken in February returning 10% of shareholder's funds. As a result of making the tender offer the Board of Directors decided that no dividend would be paid for 2016.
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The Investment Manager has continued to maintain a diverse portfolio of undervalued assets.
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Further details can be found on the Company's website http://terracapitalplc.com/.
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Sincerely yours,Â
Dirk Van den Broeck
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Chairman
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26 September 2017
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Report of the Investment Manager
The Fund's NAV increased to $1.085 at June 30, 2017 from $1.076 at March 31, 2017, a net total return of 1.4% for the quarter.
The Fund's investment level (equity, fixed income and hedging) decreased from 98.5% at March 31 (including commitment to Terra Argentine Fund, L.P.) to 85.9% at June 30. The large decrease in invested level is the result of sales in the portfolio as well as the removal of the Terra Argentine Fund, L.P. commitment following this fund's letter of August 2, 2017 explaining that the Uncalled Capital Commitments shall be cancelled upon final distribution of the investment.
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Specific Areas of Investment
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Europe
The Fund's exposure to Europe increased from 21.7% to 22.8% and is the largest regional allocation. The Fund increased its positions KCELL (Kazakhstan) and Speedy (Bulgaria). It decreased its positions in Crnogorski Telekom (Montenegro)0 and X5 Retail Group (Russia).
Americas
The allocation to the Americas decreased from 30.9% to 20.8% and is the Fund's second largest regional allocation. The Fund increased its position in Refineria La Pampilla (Peru) and decreased its positions in Copa Holdings (Panama), IRSA (Argentina), Terra Argentine Fund (Argentina), and National Commercial Bank (Jamaica). It liquidated its position in Scotia Group (Jamaica).
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Middle East
The Fund's exposure to the Middle East decreased on the quarter from 17.4% to 16.6%. The Fund increased its positions in Blom Bank (Lebanon), Bank Muscat (Oman), Gulf Warehousing (Qatar), BBK (Bahrain), Gulf Hotels Group (Bahrain), Ooredoo (Oman), Amanat Holdings (UAE), and Oman Cement (Oman). It decreased its position in Al Meera (Qatar) and liquidated its position in Air Arabia (UAE).
Africa
The Fund's exposure to Africa decreased from 14.0% to 12.9%. The Fund increased its positions in Emaar Misr (Egypt), Holdsport (South Africa), African Oxygen (South Africa), and Onatel (Burkina Faso). It decreased its position in Coop Bank (Kenya) and liquidated its position in Onelogix (South Africa).
Asia
The allocation to Asia decreased from 14.5% to 12.8%. The Fund increased its positions in Travellers Hotels (Philippines), Belle Corporation (Philippines), and Qingling Motors (China). It decreased its position in Great Wall Motor Company (China) and liquidated its position in Bank of Georgia (Georgia).
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Fund Details
Details of the Company's holdings may be found in note 8 on pages 13 to 14
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Respectfully Submitted by:
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Terra Partners Asset Management Limited
Suite 8/5A, Portomaso Tower, Portomaso Avenue,
St. Julian's STJ 4011 Malta
Regulated by the Malta Financial Services Authority, Reg. No. C 56353
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Unaudited consolidated income statement
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 | Note | For the period from 1 January 2017 to 30 June 2017 | For the period from 1 January 2016 to 30 June 2016 |
 |  | US$'000 | US$'000 |
Income  |  |  |  |
Net changes in fair value on financial assets at fair value through profit or loss | Â | (1,151) | 2,291 |
Realised gain on sale of financial assets at fair value through profit or loss | Â | 4,192 | 174 |
Interest income on cash balances | Â | 6 | 8 |
Interest income on bonds | Â | - | - |
Dividend income on quoted equity investments | Â | 2,405 | 1,884 |
Total net income | Â | 5,452 | 4,357 |
Manager's fees | 6 | (409) | (364) |
Audit and professional fees | Â | (70) | (59) |
Other expenses | Â | (807) | (538) |
Administrative and other expenses | Â | (1,286) | (961) |
 |  |  |  |
Profit before tax | Â | 4,166 | 3,396 |
 |  |  |  |
Taxation | 12 | (174) | (229) |
 |  |  |  |
Profit for the period | Â | 3,992 | 3,167 |
 |  |  |  |
 |  |  |  |
Basic and diluted earnings per share (cents per share) for the period | 10 | 6.26 | 4.64 |
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Unaudited consolidated statement of comprehensive income
 |  | For the period from 1 January 2017 to 30 June 2017 | For the period from 1 January 2016 to 30 June 2016 |
 |  | US$'000 | US$'000 |
Profit for the period | Â | 3,992 | 3,167 |
Other comprehensive income | Â | Â | Â |
Foreign exchange differences | Â | - | - |
Total comprehensive profit for the period | Â | 3,992 | 3,167 |
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Unaudited consolidated balance sheet
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 | Note | Unaudited At 30 June 2017 | Audited At 31 December 2016 |
 |  | US$'000 | US$'000 |
Financial assets at fair value through profit or loss | 8 | 57,276 | 58,143 |
Trade and other receivables | 9 | 451 | 208 |
Cash and cash equivalents | Â | 10,452 | 12,430 |
Total current assets | Â | 68,179 | 70,781 |
Total assets | Â | 68,179 | 70,781 |
Issued share capital | 11 | 6,830 | 7,726 |
Retained earnings | Â | 53,676 | 56,377 |
Capital redemption reserve | Â | 6,170 | 5,274 |
Total equity | Â | 66,676 | 69,377 |
Total current liabilities | Â | Â | Â |
Taxation | 12 | 422 | 373 |
Trade and other payables | 14 | 1,081 | 1,031 |
Total current liabilities | Â | 1,503 | 1,404 |
Total liabilities | Â | 1,503 | 1,404 |
Total equity and liabilities | Â | 68,179 | 70,781 |
Net Asset Value per share | 5 | 1.09 | 1.02 |
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Approved by the Board of Directors on 26 September 2017
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Ian Dungate Dirk van den Broeck
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Director Director
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Unaudited consolidated statement of changes in equity
For the six months ended 30 June 2017
 | Share capital | Retained earnings | Capital redemption reserve | Total   |
 | US$'000 | US$'000 | US$'000 | US$'000 |
Balance at 1 January 2017 | 7,726 | 56,377 | 5,274 | 69,377 |
Profit for the period | - | 3,992 | - | 3,992 |
Other comprehensive income | Â | Â | Â | Â |
Total comprehensive profit | - | 3,992 | - | 3,992 |
Dividends paid | Â | Â | Â | Â |
Shares in treasury cancelled | (896) | - | 896 | - |
Shares subject to tender offer | Â | (6,693) | - | (6,693) |
Total contributions by and distributions to owners | (896) | (6,693) | 896 | (6,693) |
 |  |  |  |  |
Balance at 30 June 2017 | 6,830 | 53,676 | 6,170 | 66,676 |
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For the six months ended 30 June 2016
 | Share capital | Retained earnings | Capital redemption reserve | Total   |
 | US$'000 | US$'000 | US$'000 | US$'000 |
Balance at 1 January 2016 | 7,726 | 50,177 | 5,274 | 63,177 |
Profit for the period | - | 3,167 | - | 3,167 |
Other comprehensive income | Â | Â | Â | Â |
Total comprehensive profit | - | 3,167 | - | 3,167 |
Dividends paid | - | (2,212) | - | (2,212) |
Shares repurchased to be held in treasury | - | - | - | - |
Total contributions by and distributions to owners | - | (2,212) | - | (2,212) |
 Balance at 30 June 2016 | 7,726 | 51,132 | 5,274 | 64,132 |
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Unaudited consolidated statement of cash flows |  | For the period from 1 January 2017 to 30 June 2017 | For the period from 1 January 2016 to 30 June 2016 |
 |  | US$'000 | US$'000 |
 |  |  |  |
Operating activities | Â | Â | Â |
Profit before tax | Â | 4,166 | 3,396 |
Adjustments for: | Â | Â | Â |
Net changes in fair value on financial assets at fair | Â | (3,041) | (2,291) |
value through profit or loss | Â | Â | Â |
Finance income | Â | (6) | (8) |
Finance costs | Â | - | - |
Operating gain before changes in working capital | Â | 1,119 | 1,097 |
 |  |  |  |
(Increase)/decrease in trade and other receivables | Â | (243) | (294) |
Increase/(decrease) in trade and other payables | Â | 50 | 161 |
 |  | (193) | (133) |
 |  |  |  |
Taxation paid | Â | (174) | (230) |
Net finance costs paid | Â | - | - |
Interest received | Â | 6 | 8 |
Cash flows generated from operating activities | Â | 758 | 742 |
 |  |  |  |
Investing activities | Â | Â | Â |
Net purchase of financial assets | Â | - | (3,016) |
Net sale of financial assets | Â | 3,957 | - |
Funds held at Brokers | Â | - | - |
Cash flows used in investing activities | Â | 3,957 | (3,016) |
 |  |  |  |
Financing activities | Â | Â | Â |
Purchase of shares | Â | (6,693) | - |
Dividends paid | Â | - | (2,212) |
Cash flows used in financing activities | Â | (6,693) | (2,212) |
 |  |  |  |
Net decrease in cash and cash equivalents | Â | (1,978) | (4,486) |
Adjustment for foreign exchange | Â | - | (18) |
Cash and cash equivalents at beginning of period | Â | 12,430 | 11,182 |
Cash and cash equivalents at end of period | Â | 10,452 | 6,678 |
 |  |  |  |
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Notes to the consolidated financial statements
1. The Company
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Terra Capital plc (formerly named Speymill Macau Property Company plc) was incorporated and registered in the Isle of Man under the Isle of Man Companies Acts 1931 to 2004 on 31 October 2006 as a public company with registered number 118202C.
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Pursuant to the Extraordinary General Meeting held on 24 May 2012 a tender offer was made for ordinary shares of US$0.10 each in the issued ordinary share capital of the Company at a price of US$0.835 per ordinary share. As a result of the tender 36,896,674 shares were tendered and were purchased by the Company. At that same meeting the shareholders approved a plan to sell off the Company's real estate portfolio and change its investment mandate to investing in equities primarily in the Frontier and Emerging markets. This investment mandate was subsequently refined in an EGM held on the 26th January 2015 when the fees paid to the investment manager were also reduced and a potential wind up date for the fund in 2018. To obtain full details, all of the documentation may be found on the Company's website http://www.terracapitalplc.com/regulatory-news.
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The interim consolidated financial statements of Terra Capital plc as at, and for, the six months ended 30 June 2017 comprise the Company and its subsidiaries (together referred to as the "Group").
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The consolidated financial statements of the Group as at, and for, the year ended 31 December 2016 are available upon request from the Company's registered office at Millennium House, 46 Athol Street, Douglas, Isle of Man, IM1 1JB or at www.terracapitalplc.com.
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The Company's investment objective is to achieve capital appreciation while attempting to reduce risk primarily by applying a disciplined and diversified value investing philosophy in purchasing securities in Frontier markets for its portfolio.
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2 Statement of compliance and significant accounting policies
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These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at, and for, the year ended 31 December 2016.
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These condensed consolidated interim financial statements were approved by the Board of Directors on 26 September 2017.
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The Group has one segment focusing on achieving capital appreciation while attempting to reduce risk primarily by applying a disciplined and diversified value investing philosophy. No additional disclosure is included in relation to segment reporting as the Group's activities are limited to one business segment.
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The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at, and for, the year ended 31 December 2016.
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The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2016.
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3 Use of estimates and judgements
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The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
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Certain investments are in illiquid/inactive markets and classified as Level 2 in the IFRS 7 fair value Hierarchy (see note 7).
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4 Finance income and costs
  | Period ended 30 June 2017 | Period ended 30 June 2016 |
 | US$'000 | US$'000 |
Bank interest income | 6 | 8 |
Finance income | 6 | 8 |
Bank charges | (3) | (5) |
Finance costs | (3) | (5) |
Net finance income | 3 | 3 |
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5 Net asset value per share
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The net asset value per share as at 30 June 2017 is US$1.09 based on 61,469,312 ordinary shares in issue as at that date (excluding 6,829,924 shares held in treasury) (31 December 2016: US$0.94 based on 68,299,236 ordinary shares (excluding 8,956,423 shares held in treasury)).
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6 Related party transactions
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Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.
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Parties are considered to be related if one party has the ability to control the other party or to exercise significant influence over the party making financial or operational decisions.
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A total of $3.4 million was committed to be invested in the Terra Argentine Fund ("TAF") a fund managed by the Manager. It was determined by the Board that this was the most efficient method of obtaining a diversified investment in this market and the Manager has waived all duplicate fees on this investment pursuant to an agreement. Following some realisations and return of funds, at 30 June 2017, the value of the investment In TAF stood at $442,000 with no further commitments outstanding. Â
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Directors of the Company
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Howard Golden and Filip Montfort are directors of the Manager. The Manager was appointed at the EGM held on 24 May 2012. Following the EGM, Mr Golden and Mr Yarden Mariuma resigned as directors of the Company and Mr Dirk van den Broeck was elected Chairman of the Board of Directors as an independent non-executive director and Mr Ian Dungate was elected as an independent non-executive director.
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Filip Montfort is a director of the Investment Manager and remained as a Director of the Company following the above noted EGM until his resignation on 16 December 2015.
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Mr Dungate is a director of the administrator.
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Directors remuneration is disclosed in note 13
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The Investment Manager
Following the EGM held on 24 May 2012, the Company appointed the immediate predecessor to the current investment manager until the current investment manager, Terra Partners Asset Management, Limited ("TPAM") received its license in Malta and then the Investment Management Contract was assigned to TPAM to be the Group's investment manager (the "Manager").
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Term and termination
The Investment Management Agreement may be terminated by either party giving to the other not less than 12 months' notice expiring on, or at any time after, the third anniversary of the commencement date of the agreement or otherwise, in circumstances, inter alia, where one of the parties has a receiver appointed over its assets or if an order is made or an effective resolution passed for the winding-up of one of the parties.
Management fee
The Manager shall be entitled to receive a management fee equal to 1.25 per cent. per annum of the aggregate Net Asset Value of the Company during the relevant fee payment period, calculated on the first day of each month, accrued on a daily basis and payable monthly in arrears (or pro rata for lesser periods).
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Performance fee
The Manager is also entitled to receive a performance fee equal to 12 per cent. of the increase (if any) in the Net Asset Value per Share (with dividends and other distributions added back and ignoring any accrued performance fee) as at each semi-annual performance fee calculation period above the Net Asset Value as at the commencement of each such semi-annual performance fee calculation period, provided that any performance fee shall be payable only to the extent that the Net Asset Value of the Share exceeds the Net Asset Value immediately following the settlement of the Tender Offer or, if a performance fee has been paid, the Net Asset Value per Share when a performance fee was last paid. The performance fee shall be calculated on 30 June and 31 December in each year and paid following such calculation. The performance fee for the period ending 30 June 2017 was US$ Nil (30 June 2016: US$ Nil).
Expenses
In addition, the Company shall be responsible for the payment of certain out-of-pocket expenses reasonably incurred by the Manager in the proper performance of the Investment Management Agreement up to a maximum of US$75,000 per annum and any other put-of-pocket expenses in excess of this maximum shall be borne by the Investment Manager.
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The Administrator
The Administrator shall be paid by the Company a fixed fee of US$100,000 per annum, payable quarterly in arrears.
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For the preparation of the financial statements the Administrator shall be paid by the Company US$3,000 per set.
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In the event that the Administrator provides secretarial services to the Company, the Administrator shall be paid an annual fee of US$8,000. The Administrator shall be entitled to additional fees for such general secretarial services based on time and charges where the number of board meetings or general meetings exceeds for per annum. The Administrator shall be entitled to an attendance fee of US$750 per day or part thereof where the Administrator attends a board meeting or general meeting which is not held in the Isle of Man.
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7 Fair value hierarchy
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IFRS 7 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
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• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
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US$50,541,000 (31 December 2016: US$49,328,000) of the Company's investments are classed as level 1 investments and US$6,735,000 (31 December 2016: US$8,815,000) of the Company's investments are classed as level 2 investments.
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8 Financial assets at fair value through profit or loss
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Group
30 June 2017: Financial assets at fair value through profit or loss (all quoted equity securities, except Terra Argentina Fund LP):
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Security name | Â | Number | US$'000 | Â | |||||
 | ABU DHABI Commercial Bank (ADCB UH) |  | 558,000 | 1,066 |  | ||||
 | Amanat Holdings |  | 2,430,000 | 754 |  | ||||
 | Square Pharma |  | 522,707 | 1,871 |  | ||||
 | Summit Power |  | 2,596,398 | 1,307 |  | ||||
 | Speedy EAD-Sofia |  | 47,518 | 1,191 |  | ||||
 | Bank of Bahrain and Kuwait |  | 980,000 | 1,017 |  | ||||
 | Gulf Hotel Group |  | 704,700 | 970 |  | ||||
 | BB Votorantim (B65JNX7) |  | 54,300 | 999 |  | ||||
 | FDO S F Lima 2188023 |  | 589,582 | 390 |  | ||||
 | Fi Projecto Agua Branca |  | 1,800 | 171 |  | ||||
 | Fii BM Edificio Galeria B8C2Zb5 |  | 39,200 | 569 |  | ||||
 | Fii Torre Almirante B0B23L6 |  | 1,020 | 536 |  | ||||
 | Fii Vila Olimpia Cor |  | 34,000 | 838 |  | ||||
 | SDI Logistica Rio |  | 25,244 | 682 |  | ||||
 | Emaar Misr for Development |  | 7,361,000 | 1,105 |  | ||||
 | Crnogorski Telekom |  | 217,624 | 534 |  | ||||
 | Gorenje Velenje |  | 175,399 | 1,262 |  | ||||
 | Polis Banc QF |  | 1,789 | 1,189 |  | ||||
 | QF BNL Portfolio |  | 845 | 433 |  | ||||
 | Silvano Fashion Group |  | 148,299 | 473 |  | ||||
 | Great Wall Motor Company |  | 548,600 | 677 |  | ||||
 | Qingling Motors Co Ltd |  | 3,362,615 | 1,126 |  | ||||
 | Allami Nyomda (Hungarian Printing Co) |  | 558,238 | 2,830 |  | ||||
 | JMMB Group Limited |  | 8,500,000 | 1,316 |  | ||||
 | National Commercial Bank Jamaica Ltd |  | 5,066,649 | 2,750 |  | ||||
 | Co-operative Bank of Kenya |  | 5,290,700 | 840 |  | ||||
 | Residences Dar Saada |  | 60,083 | 1,096 |  | ||||
 | Komercijalna Banka |  | 28,845 | 1,413 |  | ||||
 |  |  |  |  |  |  |  |  |  |
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Security name | Â | Number | US$'000 | Â | |||||
 | Nigerian Breweries (6637286) |  | 244,747 | 112 |  | ||||
 | Bank Muscat |  | 1,104,454 | 1,072 |  | ||||
 | Oman Cement Company |  | 601,950 | 696 |  | ||||
 | Oman Refreshment Company |  | 175,000 | 908 |  | ||||
 | Ooredoo (OMAN) |  | 699,000 | 816 |  | ||||
 | Ferreycorp SAA |  | 2,107,381 | 1,174 |  | ||||
 | Refineria La Pampilla SA |  | 15,133,411 | 1,048 |  | ||||
 | Belle Corp 6090180 |  | 15,700,000 | 1,191 |  | ||||
 | RFM Corporation |  | 11,003,750 | 970 |  | ||||
 | Travellers International Hot BFG0SX7 |  | 19,782,000 | 1,355 |  | ||||
 | Fabryki Mebli Forte |  | 58,000 | 1,289 |  | ||||
 | Kernel Holdings |  | 61,923 | 1,084 |  | ||||
 | Al Meera Consumer Goods |  | 6,119 | 223 |  | ||||
 | Gulf Warehousing |  | 79,577 | 1,025 |  | ||||
 | Galenika Fitofarma |  | 79,115 | 1,972 |  | ||||
 | Artes SA |  | 246,934 | 828 |  | ||||
 | One Tech Holding |  | 248,305 | 1,004 |  | ||||
 | Tunisie Leasing |  | 84,522 | 536 |  | ||||
 | Tunisie Leasing Rights |  | 3,296 | 21 |  | ||||
 | Blom Bank GDS |  | 137,672 | 1,666 |  | ||||
 | Copi Holdi NPV |  | 15,154 | 1,773 |  | ||||
 | IRSA SP ADR |  | 49,498 | 1,194 |  | ||||
 | KCell JT |  | 397,630 | 1,471 |  | ||||
 | Lebanese GDS |  | 114,499 | 870 |  | ||||
 | Terra Argentina Fund |  | 275,774 | 442 |  | ||||
 | X5 Retail Group |  | 2,478 | 86 |  | ||||
 | Onatel BF |  | 60,809 | 984 |  | ||||
 | African Oxygen |  | 692,000 | 1,030 |  | ||||
 | Holdsport Limited |  | 230,501 | 1,031 |  | ||||
 |  |  |  |  |  |  |  |  |  |
Total 57,276
9 Trade and other receivables
 | 30 June 2017 | 31 December 2016 |
 | US$'000 | US$'000 |
Prepayments and other receivables | 451 | 208 |
 | 451 | 208 |
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10 Earnings per share
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Basic earnings per share is calculated by dividing the profit for the period attributable to equity holders of the Company by the weighted-average number of ordinary shares in issue during the period.
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 | Period ended 30 June 2017 | Period ended 30 June 2016 | ||
 |  |  | ||
Profit attributable to equity holders of the Company (US$'000) | 3,992 | 3,167 | ||
Weighted average number of ordinary shares in issue (thousands) (excluding 6,829,924 held in treasury (2015: excluding 8,956,423 held in treasury) | 63,809 | 68,299 | ||
Earnings per share (cent per share) | 6.26 | 4.64 | ||
 |  |  |  |  |
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11 Share capital
 | 30 June 2017 US$'000 | 31 December 2016 US$'000 |
Authorised: | Â | Â |
400,000,000 Ordinary shares of US$0.10 each | 40,000 | 40,000 |
Allotted, Called-up and Fully-Paid: | Â | Â |
61,469,312 (31 December 2015: 68,299,236) Ordinary shares of US$0.10 each in issue, with full voting rights | 6,147 | 6,830 |
6,829,924 (31 December 2015: 8,956,423) Ordinary shares of US$0.10 each in issue, held in treasury | 683 | 896 |
 | 6,830 | 7,726 |
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As at 1 March 2017 6,829,924 shares were repurchased and placed in treasury and 8,623,423 shares previously held in treasury were cancelled. The Ordinary shares held in treasury have no voting rights and are not entitled to dividends
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12 Taxation
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 | 30 June 2017 | 31 December 2016 |
 | US$'000 | US$'000 |
Balance at 1 January | 373 | 229 |
Withholding taxes on dividends received | 174 | 565 |
Tax paid | (125) | (421) |
Closing Balance | 422 | 373 |
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Isle of Man taxation
The Company is resident in the Isle of Man which means that it pays income tax at 0%. The Company pays a corporate charge of £390 to the Isle of Man Government for each tax year.
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13 Directors' remuneration
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Mr Van den Broeck, as Chairman, is entitled to remuneration of US$45,000 per annum from the date of his appointment and Mr Dungate and Mr Bartlett are each entitled to remuneration of US$30,000 per annum from the respective dates of their appointments.
14 Trade and other payables
 | 30 June 2017 | 31 December 2016 |
 | US$'000 | US$'000 |
Sundry creditors and accruals | 1,503 | 1,031 |
Total | 1,503 | 1,031 |
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15 Contingent liabilities and capital commitments
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The Company has no outstanding capital commitments as at 30 June 2017.
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16 Post balance sheet events
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There have been no material events since the balance sheet date that require disclosure in the interim financial statements.
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