5 Nov 2014 07:00
VALUE AND INCOME TRUST PLC
UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
SUMMARY
30 September 2014 | 31 March 2014 | 30 September 2013 | |
Net asset value per share | 293.85p | 304.30p | 287.72p |
(valuing debt at market) | |||
Net asset value per share | 316.64p | 325.48p | 309.48p |
(valuing debt at par) | |||
Share price (mid) | 258.38p | 267.00p | 255.00p |
Dividend per share | 4.30p | 8.50p | 4.10p |
(Interim) | (Total) | (Interim) |
Value and Income Trust ('VIT') is a specialist investment trust whose shares are traded on the London Stock Exchange. VIT invests in higher yielding, less fashionable areas of the UK commercial property and equity markets, particularly in medium and smaller sized companies. VIT aims for long term real growth in dividends and capital values without undue risk. Figures for net asset values shown in the tables above and below are calculated after deducting dividends declared but not yet paid, as in previous years.
Over the six months ended 30 September 2014, VIT's share price fell by 3.2% while the net asset value per share, valuing debt at par, decreased by 2.4%. The FTSE All-Share Index (the "Index") fell by 0.6% over the half-year. VIT's property portfolio was revalued independently at 30 September 2014.
Over the half-year, the capital value of VIT's equity portfolio (adjusted for sales and purchases) fell by 4.5% compared to a fall of 0.6% in the Index. The capital value of VIT's existing property portfolio rose by 3.2%.
An interim dividend of 4.30p (2013: 4.10p) per share has been declared payable on 2 January 2015 to those shareholders on the register on 5 December 2014. The ex-dividend date will be 4 December 2014.
Summary of Portfolio | ||||||
30 September 2014 | 31 March 2014 | 30 September 2013 | ||||
£m | % | £m | % | £m | % | |
UK Equities | 127.7 | 71 | 135.2 | 74 | 126.4 | 72 |
UK Property | 48.8 | 27 | 46.5 | 25 | 46.4 | 26 |
Net current assets | 3.0 | 2 | 1.9 | 1 | 3.5 | 2 |
________ | ________ | ________ | ________ | ________ | _______ | |
179.5 | 100 | 183.6 | 100 | 176.3 | 100 | |
________ | ________ | ________ | ________ | ________ | _______ | |
ENQUIRIES: | Angela Lascelles OLIM Limited, Portfolio Manager, Equities Tel: 020 7408 7290 Website: www.olim.co.uk
Matthew Oakeshott OLIM Property Limited, Portfolio Manager, Property Tel: 020 7647 6701 Website: www.olimproperty.co.uk |
INTERIM BOARD REPORT
MANAGEMENT AND ADMINISTRATION OF VIT
The Company has made arrangements to comply with the Alternative Investment Fund Managers Directive (AIFMD) which came into effect on 22 July 2014. As a result, the Company has appointed Value and Income Services Limited (VIS), a wholly owned subsidiary of the Company, as its Alternative Investment Fund Manager (AIFM). As AIFM, VIS has responsibility for the overall portfolio management and risk management of the assets of the Company. VIS has delegated its portfolio management responsibilities for the equity portfolio to OLIM Limited (OLIM) and for the property portfolio to OLIM Property Limited (OLIMP) (collectively the Portfolio Managers). The delegation by VIS of its portfolio management responsibilities is in accordance with the delegation requirements of the AIFMD. The Portfolio Managers remain subject to the supervision and direction of VIS. The Portfolio Managers are responsible to VIS and ultimately to the Company in regard to the management of the investment of the assets of the Company in accordance with the Company's investment objectives and policies. VIS has established a risk committee to keep under review the effectiveness of the Company's internal controls and risk management systems and procedures and to identify, measure, manage and monitor the risks identified as affecting the Company's business.
An additional requirement of the AIFMD was to appoint a depositary on behalf of the Company to oversee the custody and cash arrangements of the Company. The Company has appointed BNP Paribas Securities Services, London Branch to act as the Company's depositary.
PRINCIPAL RISKS AND UNCERTAINTIES
There is regular review of each of the principal risks and uncertainties which have been identified as affecting the Company's business. These risks and uncertainties are summarised below and are considered equally applicable to the second half of the financial year as for the period under review. Policies are in place for the management of each of these risks and uncertainties.
• Discount volatility: The Company's shares may trade at a price which represents a discount to its underlying net asset value.
• Regulatory risk: The Company operates in a complex regulatory environment and therefore faces a number of regulatory risks. A breach of S1158 Corporation Taxes Act 2010 would result in the Company being subject to Capital gains tax on portfolio investments. Breaches of other regulations, including the Companies Act 2006, the UKLA Listing Rules or the UK Disclosure and Transparency Rules, could lead to a number of detrimental outcomes and reputational damage. Breaches of controls by service providers to the Company could also lead to reputational damage or loss.
• Market price risk: The fair value of, or future cash flows from, a financial instrument held by the Company may fluctuate because of changes in market prices. This market price risk comprises three elements - price risk, interest rate risk and currency risk.
Price risk: Price risks (i.e. changes in market prices other than those arising from interest rate or currency risk) may affect the value of the Company's investments. It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular sector. For equities, asset allocation and stock selection both act to reduce market risk. The Portfolio Managers actively monitor market prices throughout the year and report to the Board, which meets regularly in order to review investment strategy. The investments held by the Group are listed on the UK Stock Exchange and all investment properties are commercial properties located in UK with full repairing and insuring terms, with upward only rent reviews.
Interest rate risk: Interest rate movements may affect the fair value of the investments in property and the level of income receivable on cash deposits. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions. The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise debenture stock, providing secure long term funding. It is the Board's policy to maintain a gearing level, measured on the most stringent basis of calculation after netting off cash equivalents, of between 25% and 40%.
Currency risk: A small proportion of the Group's investment portfolio is invested in securities whose fair value and dividend stream are affected by movements in foreign exchange rates. It is not the Board's policy to hedge this risk.
• Liquidity risk: This is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities. The Group's assets comprise of readily realisable securities which can be sold to meet commitments if required and investment properties which, by their nature, are less readily realisable.
• Credit risk: This is the failure of a counterparty to a transaction to discharge its obligations under that transaction which could result in the Group suffering a loss.
The risk is not significant and is managed as follows:
- investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the Portfolio Managers and limits are set on the amount that may be due from any one broker;
- the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of failed trade reports on a daily basis. In addition, a stock reconciliation to third party administrators' records is performed on a daily basis which ensures that discrepancies are picked up in a timely fashion. The Portfolio Managers' Compliance Officers carry out periodic reviews of the Custodian's operations and report findings to the respective Portfolio Manager's Risk Management Committee and to VIS. This review will also include checks on the maintenance and security of investments held; and
- cash is held only with reputable banks with high quality external credit ratings.
None of the Company's assets are secured by collateral or other credit enhancements.
• Property risk: The Group's commercial property portfolio is subject to both market and specific property risk. Since the UK commercial property market has been markedly cyclical for many years, it is prudent to expect that to continue. The price and availability of credit, real economic growth and the constraints on the development of new property are the main influences on the property investment market. Against that background, the specific risks to the income from the portfolio are tenants being unable to pay their rents and other charges, or leaving their properties at the end of their leases. All leases are on full repairing and insuring terms, with upward only rent reviews. None of the Group's financial assets is past due or impaired.
GOING CONCERN
In compliance with the UKLA's Listing Rules and with reference to the Financial Reporting Council's guidance on Going Concern and Liquidity Risk issued in October 2009, the Directors can report that, based on the Company's valuations of assets and liabilities, budgets and financial projections, they have satisfied themselves that the Company is a going concern. The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future and, accordingly, that it remains appropriate to adopt the going concern basis in preparing the accounts.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that to the best of their knowledge:
• the condensed set of financial statements within the Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'; and
• the Interim Board Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the FCA's Disclosure and Transparency Rules.
For and on behalf of the Board of Value and Income Trust PLC
James Ferguson
Chairman
4 November 2014
VALUE AND INCOME TRUST PLC
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2014
As at | As at | As at | |||||
30 September 2014 | 31 March 2014 | 30 September 2013 | |||||
(Unaudited) | (Audited) | (Unaudited) | |||||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
ASSETS | Notes | ||||||
NON CURRENT ASSETS | |||||||
Investments held at fair value through profit or loss | 127,687 | 135,229 | 126,395 | ||||
Investment properties | 48,850 | 46,475 | 46,400 | ||||
________ | ________ | _________ | |||||
176,537 | 181,704 | 172,795 | |||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | 3,920 | 3,308 | 4,219 | ||||
Other receivables | 899 | 619 | 762 | ||||
________ | ________ | _________ | |||||
4,819 | 3,927 |
| 4,981 | ||||
________ | ________ | _________ | |||||
TOTAL ASSETS | 181,356 | 185,631 | 177,776 | ||||
CURRENT LIABILITIES | |||||||
Other payables | (1,839) | (2,073) | (1,497) | ||||
________ | ________ | _________ | |||||
179,517 | 183,558 | 176,279 | |||||
NON-CURRENT LIABILITIES | |||||||
Debenture stock | (35,289) | (35,301) | (35,313) | ||||
________ | ________ | _________ | |||||
144,228 | 148,257 | 140,966 | |||||
________ | ________ | _________ | |||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS | |||||||
Ordinary called up share capital | 4,555 | 4,555 | 4,555 | ||||
Share premium | 18,446 | 18,446 | 18,446 | ||||
Retained earnings | 6 | 121,227 | 125,256 | 117,965 | |||
________ | ________ | _________ | |||||
144,228 | 148,257 | 140,966 | |||||
________ | ________ | _________ | |||||
NET ASSET VALUE PER ORDINARY SHARE | 316.64p | 325.48p | 309.48p | ||||
VALUE AND INCOME TRUST PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
6 months ended | 6 months ended | Year ended | ||||||||
30 September 2014 | 30 September 2013 | 31 March 2014 | ||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||
Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total | ||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
Notes | ||||||||||
INVESTMENT INCOME | ||||||||||
Dividend income | 3,277 | - | 3,277 | 3,023 | - | 3,023 | 4,834 | - | 4,834 | |
OTHER OPERATING INCOME | 2 | 1,802 | - | 1,802 | 1,777 | - | 1,777 | 3,463 | - | 3,463 |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
5,079 | - | 5,079 | 4,800 | - | 4,800 | 8,297 | - | 8,297 | ||
GAINS AND LOSSES ON INVESTMENTS | ||||||||||
Realised gains on held-at-fair-value investments | - | 1,107 | 1,107 | - | 686 | 686 | - | 6,159 | 6,159 | |
Unrealised (losses)/gains on held-at-fair-value investments and investment properties | - | (5,463) | (5,463) | - | 4,309 | 4,309 | - | 7,781 | 7,781 | |
Net currency (losses)/gains | - | (3) | (3) | - | - | - | - | 2 | 2 | |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
TOTAL INCOME | 5,079 | (4,359) | 720 | 4,800 | 4,995 | 9,795 | 8,297 | 13,942 | 22,239 | |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
EXPENSES | ||||||||||
Investment management fees | (191) | (444) | (635) | (187) | (437) | (624) | (368) | (1,470) | (1,838) | |
Other operating expenses | (359) | - | (359) | (338) | - | (338) | (655) | (5) | (660) | |
FINANCE COSTS | (1,751) | - | (1,751) | (1,751) | - | (1,751) | (3,501) | - | (3,501) | |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
TOTAL EXPENSES | (2,301) | (444) | (2,745) | (2,276) | (437) | (2,713) | (4,524) | (1,475) | (5,999) | |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
(LOSS)/PROFIT BEFORE TAX | 2,778 | (4,803) | (2,025) | 2,524 | 4,558 | 7,082 | 3,773 | 12,467 | 16,240 | |
TAXATION | - | - | - | - | - | - | - | - | - | |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
(LOSS)/PROFIT FOR THE PERIOD | 2,778 | (4,803) | (2,025) | 2,524 | 4,558 | 7,082 | 3,773 | 12,467 | 16,240 | |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
EARNINGS PER ORDINARY SHARE (PENCE) | 3 | 6.10 | (10.54) | (4.44) | 5.54 | 10.01 | 15.55 | 8.28 | 27.37 | 35.65 |
______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ______ | ||
The total column of this statement represents the Group's Income Statement prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance issued by the Association of Investment Companies. All items in the above statement derive from continuing operations. All income is attributable to the equity holders of the parent company. There are no minority interests.
The Board has declared an interim dividend of 4.30p per share (2013: 4.10p) which will be payable on 2 January 2015 to those shareholders on the register on 5 December 2014. The ex-dividend date will be 4 December 2014. | ||||||||||
VALUE AND INCOME TRUST PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
6 months ended 30 September 2014 | Year ended 31 March 2014 | ||||||||
(Unaudited) | (Audited) | ||||||||
Share | Share | Retained | Total | Share | Share | Retained | Total | ||
capital | premium | earnings | capital | premium | earnings | ||||
Notes | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Net assets at 31 March 2014 | 4,555 | 18,446 | 125,256 | 148,257 | 4,555 | 18,446 | 112,842 | 135,843 | |
Net (loss)/profit for the period | - | - | (2,025) | (2,025) | - | - | 16,240 | 16,240 | |
Dividends paid | 4 | - | - | (2,004) | (2,004) | - | - | (3,826) | (3,826) |
_______ | _______ | _______ | ______ | ______ | _______ | _______ | ______ | ||
NET ASSETS AT 30 SEPTEMBER 2014 | 4,555 | 18,446 | 121,227 | 144,228 | 4,555 | 18,446 | 125,256 | 148,257 | |
_______ | _______ | _______ | ______ | ______ | _______ | _______ | ______ | ||
6 months ended 30 September 2013 | ||||||
(Unaudited) | ||||||
Share | Share | Retained | ||||
capital | premium | earnings | Total | |||
Notes | £000 | £000 | £000 | £000 | ||
Net assets at 31 March 2014 | 4,555 | 18,446 | 112,842 | 135,843 |
| |
Net (loss)/profit for the period | - | - | 7,082 | 7,082 |
| |
Dividends paid | 4 | - | - | (1,959) | (1,959) |
|
_______ | _______ | _______ | _______ |
| ||
4,555 | 18,446 | 117,965 | 140,966 |
| ||
_______ | _______ | _______ | _______ |
| ||
VALUE AND INCOME TRUST PLC
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014
6 months ended | 6 months ended | Year ended | ||||
30 September 2014 | 30 September 2013 | 31 March 2014 | ||||
(Unaudited) | (Unaudited) | (Audited) | ||||
£000 | £000 | £000 | £000 | £000 | £000 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Dividend income received | 2,907 | 3,118 | 5,117 | |||
Rental received | 1,585 | 1,428 | 3,497 | |||
Interest received | 7 | - | 2 | |||
Other income | 8 | - | - | |||
Operating expenses paid | (1,162) | (986) | (2,312) | |||
Taxation received/(paid) | 62 | - | (63) | |||
________ | _________ | ________ | ||||
NET CASH INFLOW FROM OPERATING ACTIVITIES | 3,407 | 3,560 | 6,241 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Purchase of investments | (4,236) | (730) | (11,711) | |||
Sale of investments | 5,210 | 2,969 | 13,987 | |||
________ | ________ | ________ | ||||
NET CASH INFLOW FROM | ||||||
INVESTING ACTIVITIES | 974 | 2,239 | 2,276 | |||
CASH FLOW FROM FINANCING ACTIVITIES | ||||||
Interest paid | (1,762) | (1,763) | (3,525) | |||
Dividends paid | (2,004) | (1,959) | (3,826) | |||
________ | ________ | ________ | ||||
NET CASH USED IN FINANCING ACTIVITIES | (3,766) | (3,722) | (7,351) | |||
________ | _________ | ________ | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 615 | 2,077 | 1,166 | |||
Cash and cash equivalents at the start of the period | 3,308 | 2,140 | 2,140 | |||
Foreign exchange movements | (3) | 2 | 2 | |||
________ | _________ | ________ | ||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 3,920 | 4,219 | 3,308 | |||
________ | _________ | ________ | ||||
VALUE AND INCOME TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
1 | Accounting policies | |
(a) | The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee (IASC) that remain in effect, and to the extent that they have been adopted by the European Union. | |
The functional and presentational currency of the Group is pounds sterling because that is the currency of the primary economic environment in which the Group and Company operate. The financial statements and the accompanying notes are presented in pounds sterling and rounded to the nearest thousand pounds except where otherwise indicated. | ||
The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the revaluation of certain financial assets. Where presentational guidance set out in the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the SORP) issued by the Association of Investment Companies (AIC) in January 2009 is consistent with the requirements of IFRSs, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP. | ||
The Board has considered the requirements of IFRS 8, 'Operating Segments'. The Board is charged with setting the Group's investment strategy. The Board has delegated the day to day implementation of this strategy to the Investment Managers but the Board retain responsibility to ensure that adequate resources of the Group are directed in accordance with its decisions. The Board is of the view that the Group is engaged in a single segment of business, being investments in quoted UK equities and UK commercial properties. The view that the Group is engaged in a single segment of business is based on the fact that one of the key financial indicators received and reviewed by the Board is the total return from the investment portfolio taken as a whole.
The Group's financial statements have been prepared using the same accounting policies as those applied for the financial statements for the year ended 31 March 2014 which received an unqualified audit report. | ||
(b) | Going concern | |
The Group's business activities, together with the factors likely to affect its future development and performance, are set out in the Interim Board Report. The financial position of the Group as at 30 September 2014 is shown in the Statement of Financial Position. The Group had fixed debt totalling £35,289,000 as at 30 September 2014; none of the borrowings is repayable before 2021. The Group had no short term borrowings As at 30 September 2014, the Group's total assets less current liabilities exceeded its total non current liabilities by a factor of over five.
The assets of the Group consist mainly of securities and investment properties that are held in accordance with the Group's investment policy. Most of these securities are readily realisable, even in volatile markets. The Directors, who have reviewed carefully the Group's forecasts for the coming year, consider that the Group has adequate financial resources to enable it to continue in operational existence for the foreseeable future. Accordingly the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the Group's accounts. | ||
(c) | Basis of consolidation | |
The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation. | ||
(d) | Dividends payable | |
Interim dividends are recognised as a liability in the period in which they are paid as no further approval is required in respect of such dividends. Final dividends are recognised as a liability only after they have been approved by shareholders in general meeting. | ||
(e) | Investments | |
Equity investments | ||
All investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and derecognised on the trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are initially measured at fair value. Subsequent to initial recognition, investments are recognised at fair value through profit or loss. For listed investments, this is deemed to be bid market prices or closing prices for SETS stocks sourced from the London Stock Exchange. SETS is the London Stock Exchange electronic trading service covering most of the market including all FTSE 100 constituents and most liquid FTSE 250 constituents along with some other securities. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Statement of Comprehensive Income and are ultimately recognised in the retained earnings. | ||
Investment property | ||
All investment properties have been designated upon initial recognition as fair value through profit or loss. Investment properties are recognised and derecognised on the date where a purchase or sale is legally completed and are initially measured at fair value.
The Group leases out all of its properties on operational leases. A property held under an operating lease is classified and accounted for as an investment property where the Group holds it to earn rental, capital appreciation or both. Any such property leased under an operating lease is carried at fair value. Fair value is established by half-yearly professional valuation on an open market basis by Jones Lang LaSalle, Chartered Surveyors and Valuers, and in accordance with the RICS Valuation Professional Standards. The determination of fair value by Jones Lang LaSalle is supported by market evidence. It is not more heavily based on other factors because of the nature of the properties and the availability of comparable market data. | ||
2 | Other operating income | ||||||
6 months ended | 6 months ended | Year ended | |||||
30 September 2014 | 30 September 2013 | 31 March 2014 | |||||
£000 | £000 | £000 | |||||
Rental income | 1,787 | 1,775 | 3,462 | ||||
Underwriting commission | 8 | - | - | ||||
Interest receivable on short term deposits | 7 | 2 | 1 | ||||
________ | _________ | _________ | |||||
1,802 | 1,777 | 3,463 | |||||
________ | _________ | _________ | |||||
3 | Return per ordinary share | ||||||
The return per ordinary share is based on the following figures: | |||||||
6 months ended | 6 months ended | Year ended | |||||
30 September 2014 | 30 September 2013 | 31 March 2014 | |||||
£000 | £000 | £000 | |||||
Revenue return | 2,778 | 2,524 | 3,773 | ||||
Capital return | (4,803) | 4,558 | 12,467 | ||||
Weighted average ordinary | |||||||
shares in issue | 45,549,975 | 45,549,975 | 45,549,975 | ||||
Return per share - revenue | 6.10p | 5.54p | 8.28p | ||||
Return per share - capital | (10.54p) | 10.01p | 27.37p | ||||
_________ | _________ | _________ | |||||
Total return per share | (4.44p) | 15.55p | 35.65p | ||||
_________ | _________ | _________ | |||||
6 months ended 30 September 2014 | 6 months ended 30 September 2013 | Year ended 31 March 2014 | ||
4 | Dividends paid | £000 | £000 | £000 |
Ordinary dividends on equity shares deducted from reserves are as follows:- | ||||
Dividends on ordinary shares: | ||||
Final dividend of 4.40p per share (2013 - 4.30p) | ||||
paid 18 July 2014 | 2,004 | 1,959 | 1,959 | |
Interim dividend of 4.10p per share (2013 - 4.00p) | ||||
paid 3 January 2014 | - | - | 1,867 | |
_________ | _________ | _________ | ||
2,004 | 1,959 | 3,826 | ||
_________ | _________ | _________ |
5 | Interim dividend |
The Directors have declared an interim dividend of 4.30p (2014: 4.10p) per ordinary share, payable on 2 January 2015 to shareholders registered on 5 December 2014. The shares will be quoted ex dividend on 4 December 2014. |
6 | Retained earnings | ||||||
The table below shows the movement in retained earnings analysed between revenue (distributable) and capital (non-distributable) items. | |||||||
Revenue | Capital | Total | |||||
£000 | £000 | £000 | |||||
At 31 March 2014 | 3,732 | 121,524 | 125,256 | ||||
Movement during the period:- | |||||||
(Loss)/profit for the period | 2,778 | (4,803) | (2,025) | ||||
Dividends paid on ordinary shares | (2,004) | - | (2,004) | ||||
________ | ________ | ________ | |||||
At 30 September 2014 | 4,506 | 116,721 | 121,227 | ||||
________ | ________ | ________ | |||||
7 | Transaction costs | |||
During the period, expenses were incurred in acquiring and disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains and losses on investments in the Statement of Comprehensive Income. | ||||
6 months ended30 September 2014 | 6 months ended30 September 2013 | Year ended31 March 2014 | ||
£000 | £000 | £000 | ||
The total costs are as follows:- | ||||
Purchases | 23 | 5 | 47 | |
Sales | 10 | 5 | 17 | |
_________ | _________ | _________ | ||
33 | 10 | 64 | ||
_________ | _________ | _________ | ||
8 | Relationship with the Portfolio Managers and other Related Parties |
Angela Lascelles is a Director of OLIM Limited which has an agreement with the Group to provide investment management services. | |
Matthew Oakeshott is a Director of OLIM Property Limited which has an agreement with the Group to provide property management services. | |
OLIM and OLIM Property receive an investment management fee of 2/3 of 1% of the Group's total assets, which is allocated 72.5% to OLIM and 27.5% to OLIM Property. | |
OLIM and OLIM Property are also entitled to a performance fee, subject to the achievement of certain criteria. The objective is to give the Portfolio Managers a performance fee of 10% of any out-performance if the VIT share price total return (VIT SPTR) over the FTSE All-Share Index share price total return (FTSE SPTR).
The performance fee is paid annually in respect of performance over the preceding three years. The fee is payable only if the VIT SPTR has been positive over the period and, in addition, the NAV total return has been positive and has exceeded the FTSE SPTR over the period.
The maximum performance fee payable in any year is 1/3 of 1% of VIT's total assets and is allocated 72.5% to OLIM and 27.5% to OLIM Property. The fee is charged wholly to capital.
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OLIM Limited received an investment management fee of £460,000 (half year to 30 September 2013: £449,000 and year to 31 March 2014: £1,305,000 including a performance fee of £419,000). At the period end, the balance owed by the Group to OLIM Limited was £74,000 (31 March 2014: £419,000) comprising management fees for the month of September 2014, subsequently paid in October 2014. | |
OLIM Property Limited received an investment management fee of £175,000 (half year to 30 September 2013: £175,000 and year to 31 March 2014: £533,000 including a performance fee of £192,000). At the period end, the balance owed by the Group to OLIM Property Limited was £28,000 (31 March 2014: £192,000) comprising management fees for the month of September 2014, subsequently paid in October 2014.
Audax Properties plc is a wholly owned subsidiary of the Company and accordingly the Company is the ultimate controlling party. |
9 | Half Yearly Report |
The financial information contained in this Half Yearly report does not constitute statutory financial statements as defined in sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 30 September 2014 and 30 September 2013 has not been audited. | |
The information for the year ended 31 March 2014 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification under section 498 (2), (3) or (4) of the Companies Act 2006. |
10 | Approval |
This Half Yearly report was approved by the Board on 4 November 2014. |