6th Nov 2015 12:41
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC - Annual Financial ReportLONDON & ST LAWRENCE INVESTMENT COMPANY PLC - Annual Financial Report
PR Newswire
London, November 6
6 November 2015
This announcement contains regulated information
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
| 31 August 2015 | 31 August 2014 | |
| % Change | % Change | |
| Revenue return per ordinary share | +4.1% | +10.7% |
| Dividends per ordinary share | +5.1% | +5.4% |
| Total Returns: | ||
| Net asset value per ordinary share (“NAV”) | -0.5% | +7.1% |
| FTSE All-Share Index | -5.6% | +6.7% |
| Ordinary share price | -4.0% | +7.6% |
MANAGEMENT REPORT
Chairman’s Statement
For the year ended 31 August 2015, London & St Lawrence’s revenue return per share increased by 4.1%, the dividend was increased by 5.1% and the net asset value total return decreased by 0.5%.
Performance for the year to 31 August 2015
Earnings and dividends
Revenue return per share was 14.56p, an increase of 4.1%. Three quarterly dividends of 3.4p net per share were paid in February, May and August, and a fourth quarterly dividend of 4.1p net per share will be paid on 1 December 2015, making a total dividend of 14.3p net per share, an increase of 5.1%.
Net asset value total return
London & St Lawrence’s net asset value total return per ordinary share was reduced by -0.5% which compares with a positive 7.1% in the previous year. The FTSE All-Share produced a negative total return of -5.6%.
As at 31 August 2015 London & St Lawrence’s share price was at a discount of 1.2% to net asset value. A year ago the share price was at a premium of 2.5%.
Performance for the five years to 31 August 2015
Earnings and dividends
The Company’s annual dividend has grown by 28.8% over the last five years from 11.1p to 14.3p per share.
Net asset value total return
Shareholders’ net asset value total return has increased by 38.9% over the last five years, which compares with a increase of 27.4% for the FTSE All-Share Index.
Expenses
The Ongoing Charges, which is the investment management fee and other non interest expenses as a percentage of shareholders’ funds, was 0.75% (2014 0.86%).
- 2 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
MANAGEMENT REPORT (continued)
Principal Risks and Uncertainties
The main risks arising from the Group’s activities are market risk, interest rate risk and foreign currency risk. The Board regularly reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained unchanged throughout the period under review.
Market Price Risk
Market risk arises mainly from uncertainty about future prices of financial instruments used in the Group’s operations. It represents the potential loss the Group might suffer through holding market positions in the face of price movements.
It is the Board’s policy to hold an appropriate spread of investments in the portfolio in order to reduce both the statistical risk and the risk arising from factors specific to a particular sector. Market prices are actively monitored throughout the year and the Board meets regularly in order to consider investment strategy.
Cash Flow Interest Rate Risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to cash flow interest rate risk is primarily through the cash balances held which earn interest by reference to LIBOR or an international equivalent.
Liquidity Risk
The Group’s assets comprise mainly of readily realisable securities which can be sold to meet future funding commitments if necessary.
Foreign Currency Risk
The Group’s total return and net assets are not significantly affected by currency translation movements as the majority of the Group’s assets and revenue are denominated in sterling.
Statement of Directors’ Responsibilities
In accordance with Disclosure and Transparency Rule 4.1.12, the directors state, to the best of their knowledge, that:
? the financial statements, prepared in accordance with IFRSs give a true and fair view of the assets, liabilities, financial position and net return of the Company; and
? the Report of the Directors includes a fair review of the development and performance of the business and the position of the Company together with a description of the principal risks and uncertainties that it faces.
Signed on behalf of the Board of directors
P.J.C. Ashfield
Chairman
- 3 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Top 20 Investments
as at 31 August 2015
The 20 largest investments, representing 65.2% (2014 64.7%) of the portfolio (convertibles and all classes of equity in any one company being treated as one investment), are listed below. In accordance with the UKLA Listing Rules, the comparative value as at 31 August 2014 is provided. Market values reflect changes in the value of underlying shares and portfolio changes.
| Market | Market | |
| Value | Value | |
| 2015 | 2014 | |
| £’000 | £’000 | |
| Consistent Unit Trust | 12,279 | 12,967 |
| Aberforth Geared Income | 5,441 | 4,824 |
| Edinburgh Investment Trust | 4,763 | 3,510 |
| City of London Investment Trust | 3,938 | 4,083 |
| Blackrock Income Strategies | 3,591 | 1,856 |
| Merchants Trust | 3,388 | 3,507 |
| TR Property Trust | 3,370 | 3,617 |
| Law Debenture Corporation | 3,302 | 4,228 |
| Mercantile Trust | 3,184 | 2,922 |
| Dunedin Income Growth Trust | 3,044 | 3,177 |
| Invesco Income Growth | 2,918 | 2,803 |
| Witan Investment Trust | 2,844 | 3,676 |
| Standard Life Equity Income | 2,807 | 2,529 |
| Perpetual Income and Growth | 2,366 | 1,882 |
| Investors Capital Trust | 2,076 | 722 |
| Scottish Mortgage & Trust | 2,049 | 2,160 |
| Henderson Far East Income | 1,786 | 1,905 |
| Securities Trust of Scotland | 1,784 | 1,707 |
| Murray Income | 1,736 | 1,739 |
| Scottish American | 1,712 | 1,828 |
-MORE -
- 4 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Consolidated Income Statement
for the year ended 31 August 2015
| Year ended 31 August 2015 | Year ended 31 August 2014 | |||||
| Revenue Return £'000 | Capital Return £'000 | Total £'000 | Revenue Return £'000 | Capital Return £'000 | Total £'000 | |
| Profit on investments held at fair value through profit or loss | - | (502) | (502) | - | 6,906 | 6,906 |
| Income from investments held at fair value through profit or loss (note 2) | 4,151 | - | 4,151 | 4,003 | 4,003 | |
| Other operating income (note 2) | 1,125 | - | 1,125 | 1,197 | - | 1,197 |
| -------- | --------- | --------- | --------- | --------- | --------- | |
| Gross revenue and capital gains/(losses) | 5,276 | (502) | 4,774 | 5,200 | 6,906 | 12,106 |
| Expenses | (786) | (95) | (881) | (914) | (107) | (1,021) |
| -------- | --------- | --------- | --------- | --------- | --------- | |
| Net return/(loss) on ordinary activities before finance charges and taxation | 4,490 | (597) | 3,893 | 4,286 | 6,799 | 11,085 |
| Finance charges | (14) | - | (14) | (14) | - | (14) |
| -------- | --------- | --------- | --------- | --------- | --------- | |
| Net return/(loss) on ordinary activities before taxation | 4,476 | (597) | 3,879 | 4,272 | 6,799 | 11,071 |
| Taxation on net return/(loss) on ordinary activities | (261) | - | (261) | (253) | - | (253) |
| -------- | --------- | --------- | --------- | --------- | --------- | |
| Net return/(loss) on ordinary activities after taxation | 4,215 | (597) | 3,618 | 4,019 | 6,799 | 10,818 |
| ===== | ===== | ===== | ===== | ===== | ===== | |
| Return/(loss) per ordinary share – basic and diluted (note 3) | 14.56p | (2.06)p | 12.50p | 13.98p | 23.64p | 37.62p |
| ===== | ===== | ===== | ===== | ===== | ===== | |
The total columns of this statement represent the consolidated income statement of the Group. All revenue and capital items derive from continuing operations. No operations were acquired or discontinued during the year. The Group has no recognised gains or losses other than those recognised in the Income Statement.
- MORE -
- 5 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Consolidated Statement of Changes in Shareholders’ Funds
for the years ended 31 August 2015 and 31 August 2014
| Called up share capital | Capital Redemption Reserve | Share premium account | Other capital reserves | Revenue reserve | Total | |
| Year ended 31 August 2015 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| At 31 August 2014 | 1,447 | 204 | 21,033 | 79,723 | 3,188 | 105,595 |
| Net return/(loss) on ordinary activities after taxation | - | - | - | (597) | 4,215 | 3,618 |
| First quarter dividend (3.4p) for the year ended 31 August 2015 paid 27 February 2015 | - | - | - | - | (984) | (984) |
| Second quarter dividend (3.4p) for the year ended 31 August 2015 paid 29 May 2015 | - | - | - | - | (984) | (984) |
| Third quarter dividend (3.4p) for the year ended 31 August 2015 paid 28 August 2015 | - | - | - | - | (984) | (984) |
| Fourth quarter dividend (4.1p) for the year ended 31 August 2015 will be paid 1 December 2015 | - | - | - | - | (1,186) | (1,186) |
| --------- | ------ | --------- | --------- | --------- | --------- | |
| At 31 August 2015 | 1,447 | 204 | 21,033 | 79,126 | 3,265 | 105,075 |
| ===== | ==== | ===== | ===== | ===== | ===== | |
| Called up share capital | Capital Redemption Reserve | Share premium account | Other capital reserves | Revenue reserve | Total | |
| Year ended 31 August 2014 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| At 31 August 2013 | 1,436 | 204 | 20,207 | 72,924 | 3,091 | 97,862 |
| Net return/(loss) on ordinary activities after taxation | - | - | - | 6,799 | 4,019 | 10,818 |
| First quarter dividend (3.2p) for the year ended 31 August 2014 paid 28 February 2014 | - | - | - | - | (919) | (919) |
| Second quarter dividend (3.2p) for the year ended 31 August 2014 paid 31 May 2014 | - | - | - | - | (919) | (919) |
| Third quarter dividend (3.2p) for the year ended 31 August 2014 paid 29 August 2014 | - | - | - | - | (926) | (926) |
| Fourth quarter dividend (4p) for the year ended 31 August 2014 paid 25 November 2014 | - | - | - | - | (1,158) | (1,158) |
| New ordinary shares issued | 11 | - | 826 | - | - | 837 |
| --------- | ------ | --------- | --------- | --------- | --------- | |
| At 31 August 2014 | 1,447 | 204 | 21,033 | 79,723 | 3,188 | 105,595 |
| ===== | === | ===== | ====== | ===== | ====== |
- MORE –
- 6 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Consolidated Statement of Financial Position
at 31 August 2015
| 2015 | 2014 | |
| £’000 | £’000 | |
| Investments held at fair value through profit or loss | ||
| Fixed Assets | 101,186 | 101,919 |
| Intangible | 2,160 | 2,160 |
| ---------- | ---------- | |
| 103,346 | 104,079 | |
| ---------- | ---------- | |
| Current assets | ||
| Debtors | 887 | 2,208 |
| Cash and cash equivalent | 2,776 | 2,461 |
| ---------- | ---------- | |
| 3,663 | 4,669 | |
| ---------- | ---------- | |
| Creditors: amounts falling due within one year | (1,654) | (2,873) |
| ---------- | ---------- | |
| Net current assets | 2,009 | 1,796 |
| ---------- | ---------- | |
| Total assets less current liabilities | 105,355 | 105,875 |
| Preference Share Capital | (280) | (280) |
| ---------- | ---------- | |
| Total net assets | 105,075 | 105,595 |
| ====== | ====== | |
| Capital and reserves | ||
| Called up share capital | 1,447 | 1,447 |
| Share premium account | 21,033 | 21,033 |
| Capital redemption reserve | 204 | 204 |
| Other capital reserves | 79,126 | 79,723 |
| Revenue reserves | 3,265 | 3,188 |
| ---------- | ---------- | |
| Shareholders’ funds | 105,075 | 105,595 |
| ====== | ====== | |
| Net asset value per ordinary share (note 5) | 362.97p | 364.76p |
| ====== | ====== |
- MORE -
- 7 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Consolidated Cash Flow Statement
for the year ended 31 August 2015
| Year ended 31 August 2015 | Year ended 31 August 2014 | |||
| £’000 | £’000 | £’000 | £’000 | |
| Profit before finance costs and tax | 4,490 | 4,286 | ||
| Decrease/(increase) in receivables | 1,343 | (1,328) | ||
| (Decrease)/increase in payables | (1,231) | 1,259 | ||
| ------- | ------- | |||
| Cash generated from operating activities | 4,602 | 4,217 | ||
| Taxation paid | (299) | (219) | ||
| -------- | -------- | |||
| Net cash generated from operating activities | 4,303 | 3,998 | ||
| Cash flows from investing activities | ||||
| Purchases of investments held at fair value | (8,777) | (11,320) | ||
| Sales of investments held at fair value | 8,914 | 10,479 | ||
| Net cash generated from investing activities | ---------- | 137 | ---------- | (841) |
| Cash flows from financing activities | ||||
| Dividends paid on ordinary shares | (4,111) | (3,885) | ||
| Dividends paid on preference shares | (14) | (14) | ||
| Issue of new ordinary shares | --- | 837 | ||
| Net cash used in financing activities | --------- | (4,125) | --------- | (3,062) |
| --------- | --------- | |||
| Net increase/(decrease) in cash and cash equivalents | 315 | 95 | ||
| Cash and cash equivalents at beginning of year | 2,461 | 2,366 | ||
| --------- | --------- | |||
| Cash and cash equivalents at end of year | 2,776 | 2,461 | ||
| ===== | ===== | |||
- MORE -
- 8 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Notes to the Accounts :
| 1. | Accounting Policies | |||||
| Basis of accounting | ||||||
| The accounts have been prepared on the basis of the accounting policies used for the Company’s accounts for the year ended 31 August 2015. The accounts are prepared in accordance with IFRS and with the Revised Statement of Recommended Practice – “Financial Statements of Investment Trust Companies” dated January 2009 (the “Revised SORP”). All of the Company’s operations are of a continuing nature. | ||||||
| 2. | Income from investments held at fair value through profit or loss | |||||
| 2015 | 2014 | |||||
| £’000 | £’000 | |||||
| Investment income | ||||||
| Dividends UK | 3,211 | 3,185 | ||||
| Dividends Overseas | 13 | 14 | ||||
| Interest on fixed income securities | 927 | 804 | ||||
| Deposit interest | 4 | 4 | ||||
| Unit trust management fee | 1,121 | 1,193 | ||||
| --------- | --------- | |||||
| 5,276 | 5,200 | |||||
| --------- | --------- | |||||
| 3. | Return/(loss) per ordinary share – basic | |||||
| The return per ordinary share is based on the net return attributable to the ordinary shares of £3,618,991 (year ended 31 August 2014: £10,818,205) and on 28,948,944 ordinary shares (year ended 31 August 2014: 28,752,916) being the weighted average number of ordinary shares in issue during the year. | ||||||
| The return per ordinary share can be further analysed between revenue and capital, as below. | ||||||
| Year ended | Year ended | |||||
| 31 August 2015 | 31 August 2014 | |||||
| £’000 | £’000 | |||||
| Net revenue return | 4,216 | 4,019 | ||||
| Net capital return/(loss) | (597) | 6,799 | ||||
| ------------ | ------------ | |||||
| Net total return/(loss) | 3,619 | 10,818 | ||||
| ======= | ======= | |||||
| Weighted average number of ordinary shares in issue during the year | 28,948,944 | 28,752,916 | ||||
| Revenue return per ordinary share | 14.56p | 13.98p | ||||
| Capital return/(loss) per ordinary share | (2.06)p | 23.64p | ||||
| --------- | --------- | |||||
| Total return/(loss) per ordinary share | 12.50p | 37.62p | ||||
| ===== | ===== | |||||
| The Company does not have any dilutive securities. | ||||||
- MORE –
- 9 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Notes to the Accounts (continued) :
| 4. | Net asset value per ordinary share |
| The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £105,074,889 (2014: £105,595,599) and on 28,948,944 (2014: 28,948,944) shares in issue on 31 August 2015. | |
| 5. | Issued share capital |
| There were 28,948,944 ordinary shares of 5p in issue at 31 August 2015 (31 August 2014: 28,948,944) for the purpose of calculating the net asset value per ordinary share. |
2015 Accounts
The figures and financial information for the year ended 31 August 2015 were compiled from an extract of the latest accounts and do not constitute statutory accounts. These accounts included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The accounts have not yet been delivered to the Registrar of Companies.
2014 Accounts
The figures and financial information for the year ended 31 August 2014 were compiled from an extract of the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.
Annual Report
The Annual Report and Accounts will be posted to shareholders on 6 November 2015 and will be available on the Company’s website (www.londonandstlawrence.com) or in hard copy format from the Company’s office, Fair Lorna House, Buckingham Road, Singleborough, Milton Keynes, MK17 0RB.
For further information please contact:
Jenny Sculley,
London & St Lawrence Investment Company plc
01296 711598
- ENDS -
Related Shares:
LSLI.L