11 Jul 2014 15:22
Value and Income Trust PLC
Interim Management Statement
To the members of Value and Income Trust PLC ("the Company" or "VIT")
This Interim Management Statement ('IMS') relates to the period from 1 April 2014 to 30 June 2014 and contains information that covers this period and up to the date of publication of this IMS, unless otherwise specified.
Investment objective and benchmark
VIT is an investment trust whose shares are listed on the London Stock Exchange. VIT invests in higher-yielding, less fashionable areas of the UK commercial property and quoted equity markets, particularly in medium and smaller sized companies. VIT aims for long term real growth in dividends and capital value without undue risk.
Restructuring of Audax Properties plc ("Audax")
With effect from 28 March 2014, all of the assets and liabilities of Audax were transferred to VIT. Audax was substituted as the issuer of the 11% 2021 Debentures and replaced by VIT ("the Substitution"). The principal terms and conditions (including in relation to quantum and timing of repayment) of the 11% 2021 Debentures have not changed following the Substitution.The Substitution was conditional upon, amongst other things, the admission to the Official List and to trading on the London Stock Exchange's main market for listed securities in the name of VIT (the "VIT Admission"). The admission to the Official List and to trading on the London Stock Exchange's main market for listed securities in the name of Audax was cancelled upon the VIT Admission becoming effective.Following the VIT Admission on 28 March 2014, the 2021 Debentures still have code 34GE but a new ISIN has been issued, which is GB00BJVDZP03.
Material events
Following shareholder approval at the Annual General Meeting held on 11 July 2014, a final dividend of 4.40 pence per Ordinary share will be paid on 18 July 2014 to shareholders on the register as at 20 June 2014. The ex-dividend date was 18 June 2014. All other resolutions put to shareholders at the Annual General Meeting were approved.
The Board is not aware of any significant events or transactions which have occurred between 30 June 2014 and the date of publication of this IMS which would have had a material impact on the financial position of the Company.
Ten largest equity holdings as at 30 June 2014
Investment |
Value (£m) | %age of Total Portfolio as at 30 June 2014 | |
1. | Rotork | 7.61 | 4.22 |
2. | Legal & General | 6.76 | 3.75 |
3. | BT | 6.16 | 3.42 |
4. | Spectris | 6.11 | 3.39 |
5. | Glaxosmithkline | 5.87 | 3.26 |
6. | BP | 5.77 | 3.20 |
7. | Unilever | 5.67 | 3.15 |
8. | Babcock International | 5.52 | 3.06 |
9. | Restaurant Group | 4.51 | 2.50 |
10. | Pennon Group | 4.32 | 2.40 |
Total | 58.30 | 32.35 |
General description of Company's financial position
30 June 2014 | 31 March 2014 | |
Net asset value (with debt at par value) (pence) | 317.47 | 323.45 |
Net asset value (with debt at fair value) (pence) | 296.40 | 302.27 |
Ordinary share price (pence) | 263.38 | 265.0 |
Discount of Ordinary share price to Net Asset Value (valuing debt at fair value) (%) | 11.14 | 12.33 |
Net asset values, are calculated with debt at par and debt at fair value (both excluding net income) and published monthly on www.londonstockexchange.com under TIDM/EPIC Code "VIN".
Summary of Portfolio based on Total Assets less Current Liabilities
30 June 2014 | 31 March 2014 | |||
£m | % | £m | % | |
UK equities | 132.8 | 73.0 | 135.2 | 72.3 |
UK property* | 47.3 | 26.0 | 46.5 | 27.0 |
Cash/(overdraft) | 1.9 | 1.0 | 1.9 | 0.7 |
182.0 | 100.0 | 183.6 | 100.0 | |
*VIT's property portfolio was revalued independently at 31 March 2014; fair value is established by professional valuation, on an open market basis, at the end of March and September each year.
Important Information
Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.
All financial information sourced from Maven Capital Partners UK LLP, as at 30 June 2014.
For Value and Income Trust PLC
Maven Capital Partners UK LLP, Secretaries
11 July 2014
Tel. 0141 306 7400