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Annual Financial Report

11th Nov 2016 09:06

LONDON & ST LAWRENCE INVESTMENT COMPANY PLC - Annual Financial Report

PR Newswire

London, November 11

6 November 2016

This announcement contains regulated information

LONDON & ST LAWRENCE INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 31 August 2016

	31 August 2016	31 August 2015
	% Change	% Change
Revenue return per ordinary share	+5.6%	+4.1%

Dividends per ordinary share	+3.5%	+5.1%

Total Returns:
Net asset value per ordinary share (“NAV”)	+5.2%	-0.5%
FTSE All-Share Index	+7.6%	-5.6%
Ordinary share price	-4.0%	-4.0%

MANAGEMENT REPORT

Chairman’s Statement

For the year ended 31 August 2016, London & St Lawrence’s revenue return per share increased by 5.6%, the dividend was increased by 3.5% and the net asset value total return increased by 5.2%.

Performance for the year to 31 August 2015

Earnings and dividends

Revenue return per share was 15.38p, an increase of 5.6%. Three quarterly dividends of 3.5p net per share were paid in February, May and August, and a fourth quarterly dividend of 4.3p net per share will be paid on 6 December 2016, making a total dividend of 14.8p net per share, an increase of 3.5%.

Net asset value total return

London & St Lawrence’s net asset value total return per ordinary share increased by 5.2% which compares with a decrease of -0.5% in the previous year. The FTSE All-Share produced a positive total return of 7.6%.

As at 31 August 2016 London & St Lawrence’s share price was at a discount of 9.8% to net asset value. A year ago the share price was at a discount of 1.2%.

Performance for the five years to 31 August 2016

Earnings and dividends

The Company’s annual dividend has grown by 26.5% over the last five years from 11.7p to 14.8p per share.

Net asset value total return

Shareholders’ net asset value total return has increased by 36.8% over the last five years, which compares with a increase of 32.0% 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 0.69% (2015 0.75%).

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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 31 August 2016

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 undertakings included in the Consolidation; and

? the Report of the Directors includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the Consolidation 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 2016

Top 20 Investments

as at 31 August 2016

The 20 largest investments, representing 66.4% (2015 65.2%) 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 2015 is provided. Market values reflect changes in the value of underlying shares and portfolio changes.

	Market	Market
	Value	Value
	2016	2015
	£’000	£’000

Consistent Unit Trust	12,925	12,279
Edinburgh Investment Trust	5,198	4,763
Aberforth Geared Income	4,989	5,441
City of London Investment Trust	4,156	3,938
Dunedin Income Growth Trust	3,617	3,044
Merchants Trust	3,593	3,388
Law Debenture Corporation	3,575	3,302
Mercantile Trust	3,354	3,184
Blackrock Income Strategies	3,102	3,591
British Land	2,981	---
Invesco Income Growth	2,858	2,918
Henderson Far East Income	2,571	1,786
Scottish Mortgage & Trust	2,398	2,049
Perpetual Income and Growth	2,362	2,366
Standard Life Equity Income	2,355	2,807
Investors Capital Trust	2,154	2,076
F & C Private Equity	2,148	---
Scottish American	2,091	1,712
Securities Trust of Scotland	2,055	1,784
Witan Investment Trust	2,054	2,844

MORE -

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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 31 August 2016

Consolidated Income Statement

for the year ended 31 August 2016


	Year ended 31 August 2016			Year ended 31 August 2015
	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	-	5,396	5,396	-	(502)	(502)
Income from investments held at fair value through profit or loss (note 2)	4,500	-	4,500	4,151	-	4,151
Other operating income (note 2)	875	-	875	1,125	-	1,125
	--------	---------	---------	--------	---------	---------
Gross revenue and capital gains/(losses)	5,375	5,396	10,771	5,276	(502)	4,774

Expenses	(731)	(124)	(855)	(786)	(95)	(881)
	--------	---------	---------	--------	---------	---------
Net return/(loss) on ordinary activities before finance charges and taxation	4,644	5,272	9,916	4,490	(597)	3,893

Finance charges	(14)	-	(14)	(14)	-	(14)
	--------	---------	---------	--------	---------	---------
Net return/(loss) on ordinary activities before taxation	4,630	5,272	9,902	4,476	(597)	3,879

Taxation on net return/(loss) on ordinary activities	(177)	-	(177)	(261)	-	(261)
	--------	---------	---------	--------	---------	---------
Net return/(loss) on ordinary activities after taxation	4,453	5,272	9,725	4,215	(597)	3,618
	=====	=====	=====	=====	=====	=====


Return/(loss) per ordinary share – basic and diluted (note 3)	15.38p	18.21p	33.59p	14.56p	(2.06)p	12.50p
	=====	=====	=====	=====	=====	=====

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 -

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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 31 August 2016

Consolidated Statement of Changes in Shareholders’ Funds

for the years ended 31 August 2016 and 31 August 2015

	Called up share capital	Capital Redemption Reserve	Share premium account	Other capital reserves	Revenue reserve	Total
Year ended 31 August 2016	£’000	£’000	£’000	£’000	£’000	£’000
At 31 August 2015	1,447	204	21,033	79,126	3,265	105,075
Net return/(loss) on ordinary activities after taxation	-	-	-	5,272	4,453	9,725
First quarter dividend (3.5p) for the year ended 31 August 2016 paid 29 February 2016	-	-	-	-	(1,013)	(1,013)
Second quarter dividend (3.5p) for the year ended 31 August 2016 paid 31 May 2016	-	-	-	-	(1,013)	(1,013)
Third quarter dividend (3.5p) for the year ended 31 August 2016 paid 31 August 2016	-	-	-	-	(1,013)	(1,013)
Fourth quarter dividend (4.3p) for the year ended 31 August 2016 will be paid 6 December 2016	-	-	-	-	(1,246)	(1,246)
	---------	------	---------	---------	---------	---------
At 31 August 2016	1,447	204	21,033	84,398	3,433	110,515
	=====	====	=====	=====	=====	=====


	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	-	-	-	(596)	4,215	3,619
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 paid 1 December 2015	-	-	-	-	(1,187)	(1,187)
	---------	------	---------	---------	---------	---------
At 31 August 2015	1,447	204	21,033	79,127	3,264	105,075
	=====	===	=====	======	=====	======

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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 31 August 2016

Consolidated Statement of Financial Position

at 31 August 2016


	2016	2015
	£’000	£’000
Non-Current Assets
Investments held at fair value through profit or loss	106,589	101,186
Intangible assets	2,160	2,160
	----------	----------
	108,749	103,346
	----------	----------
Current assets
Debtors	785	887
Cash and cash equivalent	2,781	2,776
	----------	----------
	3,566	3,663
	----------	----------
Creditors: amounts falling due within one year	(1,520)	(1,654)
	----------	----------
Net current assets	2,046	2,009
	----------	----------

Total assets less current liabilities	110,795	105,355

Preference Share Capital	(280)	(280)
	----------	----------
Total net assets	110,515	105,075
	======	======

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	84,398	79,126
Revenue reserves	3,433	3,265
	----------	----------
Shareholders’ funds	110,515	105,075
	======	======

Net asset value per ordinary share (note 5)	381.76p	362.97p
	======	======

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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 31 August 2016

Consolidated Cash Flow Statement

for the year ended 31 August 2016

	Year ended 31 August 2016		Year ended 31 August 2015
	£’000	£’000	£’000	£’000

Profit before finance costs and tax	4,644		4,490
Decrease/(increase) in receivables	97		1,343
(Decrease)/increase in payables	(70)		(1,231)
	-------		-------
Cash generated from operating activities	4,671		4,602
Taxation paid	(267)		(299)
	--------		--------
Net cash generated from operating activities		4,404		4,303

Cash flows from investing activities
Purchases of investments held at fair value	(11,855)		(8,777)
Sales of investments held at fair value	11,697		8,914
Net cash generated from investing activities	----------	(158)	----------	137

Cash flows from financing activities
Dividends paid on ordinary shares	(4,227)		(4,111)
Dividends paid on preference shares	(14)		(14)
Issue of new ordinary shares	---		---
Net cash used in financing activities	---------	(4,241)	---------	(4,125)
		---------		---------
Net increase/(decrease) in cash and cash equivalents		5		315
Cash and cash equivalents at beginning of year		2,776		2,461
		---------		---------
Cash and cash equivalents at end of year		2,781		2,776
		=====		=====

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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 31 August 2016

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 2016. 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
			2016		2015
			£’000		£’000
	Investment income
	Dividends UK		3,642		3,211
	Dividends Overseas		16		13
	Interest on fixed income securities		837		927
	Deposit interest		5		4
	Unit trust management fee		875		1,121
			---------		---------
			5,375		5,276
			---------		---------

3.	Return/(loss) per ordinary share – basic
	The return per ordinary share is based on the net return attributable to the ordinary shares of £9,724,588 (year ended 31 August 2015: £3,618,991) and on 28,948,944 ordinary shares (year ended 31 August 2015: 28,948,944) 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 2016		31 August 2015
		£’000		£’000
	Net revenue return	4,453		4,216
	Net capital return/(loss)	5,272		(597)
		------------		------------
	Net total return/(loss)	9,725		3,619
		=======		=======
	Weighted average number of ordinary shares in issue during the year	28,948,944		28,948,944

	Revenue return per ordinary share	15.38p		14.56p
	Capital return/(loss) per ordinary share	18.21p		(2.06)p
		---------		---------
	Total return/(loss) per ordinary share	33.59p		12.50p
		=====		=====
	The Company does not have any dilutive securities.

- MORE –

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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 £110,515,033 (2015: £105,074,889) and on 28,948,944 (2015: 28,948,944) shares in issue on 31 August 2016.

5.	Issued share capital
	There were 28,948,944 ordinary shares of 5p in issue at 31 August 2016 (31 August 2015: 28,948,944) for the purpose of calculating the net asset value per ordinary share.

2016 Accounts

The figures and financial information for the year ended 31 August 2016 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.

2015 Accounts

The figures and financial information for the year ended 31 August 2015 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 2016 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

[email protected]

- ENDS -

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