15th Apr 2015 15:16
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
This announcement contains regulated information
Investment objective
The Company seeks long-term capital growth from a concentrated portfolio of international equities with a secondary objective to increase dividends over the longer term.
Performance Highlights
· The net asset value ("NAV") total return1 (including dividends reinvested) was 14.5% compared to a total return from the benchmark index2 of 17.5%.
· The share price3 total return (including dividends reinvested) was 17.3%.
· Maintained annual dividend per ordinary share of 10.0p4 per share.
· The discount5 decreased from 9.4% to 7.5%.
Total return performance for the year to 31 January 2015 (including dividends reinvested and excluding transaction costs) | ||||
1 year % | 3 years % | 5 years % | 10 years % | |
NAV1 | 14.5 | 34.5 | 59.6 | 162.0 |
Share price3 | 17.3 | 37.9 | 48.2 | 199.2 |
Benchmark index2 | 17.5 | 49.3 | 77.4 | 136.4 |
Average sector NAV6 | 14.0 | 45.8 | 71.8 | 148.7 |
Average sector share price | 11.6 | 40.6 | 65.7 | 139.2 |
Financial Highlights | At 31 January2015 | At 31 January2014 |
Shareholders' funds | ||
Net assets (£'000) | 166,086 | 152,993 |
NAV per ordinary share with debt at par7 with debt at fair value |
431.3p 432.4p |
385.8p 386.8p |
Share price | 399.0p | 349.5p |
Year ended 31 January 2015 | Year ended 31 January 2014 | |
Total return to equity shareholders Net revenue profit (£'000) Net capital profit (£'000) |
3,258 18,091 |
3,710 3,332 |
----------- | ----------- | |
Net profit for the year (£'000) | 21,349 | 7,042 |
====== | ====== | |
Total return per ordinary share Revenue |
8.32p |
9.35p |
Capital | 46.20p | 8.40p |
----------- | ----------- | |
54.52p | 17.75p | |
====== | ====== | |
Ongoing charge | 0.85% | 0.92% |
1 Net asset value per ordinary share total return with debt at fair value (including dividends reinvested); with income reinvested for 1, 3 and 5 years and capital NAV plus income reinvested for 10 years. This is based on preliminary estimates made by Morningstar Funddata and does not reflect any subsequent change in the year end NAVs reflected in this report.
2 Comprising 50% FTSE All-Share Index and 50% MSCI World Index ex UK (in sterling terms) to 31 May 2013 and the MSCI All Country World Index (in sterling terms, total return) thereafter
3 Share price total return using mid-market closing price
4 This represents the four quarterly dividends paid for the year
5 Calculated using published daily NAVs with debt at par excluding current year revenue
6 The sector is the AIC Global sector
7 Debt comprises the Company's cumulative preference stock
Sources: Henderson, Morningstar Funddata, Morningstar for the AIC, Thomson Reuters Datastream
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Chairman's Statement
Performance
During the year to 31 January 2015 the share price total return was 17.3%. The net asset value ("NAV") total return per ordinary share was 14.5%, while a narrowing of the discount to NAV contributed 2.6%.
While the Company's NAV performance was behind the benchmark total return of 17.5%, it represents a significant improvement relative to the Company's peers. The Company is ranked 12 out of 34 funds within the Company's AIC sector peer group for the year ended 31 January 2015 compared to 24 out of 30 for the year ended 31 January 2014. The improvement in performance was achieved by the Fund Manager's stock picking success and the increased geographical allocation to North America. It is also notable that this performance was achieved without excess risk and with virtually no gearing.
Board changes
Having served on the Board for 13 years and as Chairman since 2012, I shall be standing down from the Board with effect from the close of the annual general meeting ("AGM"). There have been many changes during the course of my tenure, including the change in management company from Gartmore to Henderson in 2011, the change of benchmark in 2013 and the transition to a new Fund Manager last year. I am delighted with the progress made by Wouter in his first year and feel that I am leaving at a time when the Company is in a strong position. Richard Hills will replace me as Chairman of the Board and I wish him, and the Company, every success for the future.
Aidan Lisser was appointed to the Board with effect from 5 January 2015. Aidan has had many years' experience at a senior level, across international consumer and financial services organisations. He is chief marketing officer at Investec Wealth & Investment and was previously employed by Allianz Global Investors AG, Standard Chartered Bank plc and Unilever plc. The Directors are delighted to welcome Aidan to the Board.
Revenue and dividends
Your Board declared four interim dividends of 2.5p each, making a total for the year of 10.0p, the same as for the previous year. As per last year, the Board utilised a small amount of the Company's substantial revenue reserves to finance part of the dividend. The Group revenue return per ordinary share for the year to 31 January 2015 was 8.32p per ordinary share compared with 9.35p per ordinary share for 2014.
During 2013 the Company's benchmark was changed from a 50/50 UK/global focus to a 100% global focus. The resultant portfolio realignment led to a reduction in the income generated by the Company's investments as UK stocks pay a higher dividend on average than those seen elsewhere. However, this reduction in income has been more than compensated for by the greater capital return from non-UK stocks since then, as well as the strength of the US dollar, with the MSCI World Index delivering a total return of 19.5% (in sterling terms) over the period 1 June 2013 to 31 January 2015 compared to a total return of 9.9% for the FTSE All Share Index.
The Company's primary objective is to deliver the best possible total return to shareholders which we believe has been achieved through this transition. Generating a dividend is an important but secondary objective. Given the lower income derived from a global portfolio we do not expect to increase the dividend level for some time. However, because of the substantial revenue reserves, the Board remains confident that the current dividend can be maintained, which leaves the Company with one of the higher dividend yields in the sector.
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Discount and share buy-backs
To ensure that shareholders do not suffer from excessive discount volatility, the Board keeps the absolute level of the discount in comparison to its peer group of investment trusts under regular review. The aim is to restrict the discount from rising much above 8% in normal market circumstances by buying back shares from time to time as necessary. Consequently, we are again seeking to renew the authority to buy back ordinary shares at the forthcoming annual general meeting. The Company bought back 1,154,711 shares in the year under review. All of the repurchased shares are held in treasury and we hope to be able to reissue them in due course. We are therefore seeking renewal of our authorisation from shareholders to re-issue shares bought into treasury at a discount, providing it is at a narrower discount than that at which the shares were previously bought in, and in any case at a discount of no more than 3%. I do encourage you to support these resolutions.
Annual general meeting
For the first time the Company's AGM will be broadcast live on the internet. If you are unable to attend in person you can watch the meeting as it happens by visiting www.henderson.com/trustslive.
Outlook
Six years into the market recovery that started in 2009, we retain our confidence in equities. Our view is supported by improving economic data, reasonable equity valuation levels in a number of regions and the attractive outlook for equities relative to other asset classes. Fixed income markets have come a long way and in many countries now offer negative real yields while facing the prospect of an interest rate hike at some point. The return on cash is low and again in some countries is negative, meanwhile the commodity cycle seems to have turned downwards. These factors increase the chance of equities receiving a larger part of future investor fund flows. That said, beyond the immediate future we recognise that there are signs that we are closer to the end of the current market cycle than the beginning and therefore your Fund Manager will continue to invest in a relatively conservative manner.
Richard Stone
Chairman
15 April 2015
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Principal Risks and Uncertainties
The Board policy on risk management has not materially changed from last year. The main areas of risk, in the opinion of the Board, are summarised below:
· Market risk
Since the Company is an investment trust its performance is dependent on the performance of the companies and stock markets in which it invests and will also be affected by the strength of currencies in the regions in which it invests, relative to sterling. Although Henderson seeks to maintain a diversified portfolio, country and sector weightings may diverge significantly as the portfolio is not modelled on any particular investment index. The Company does not currently carry out currency hedging.
At their regular meetings, the Directors and the Fund Manager review the Company's activities and performance and determine investment strategy. Investment risk is spread by holding a diversified portfolio in line with the Company's investment objective and policy.
· Performance risk
An inappropriate investment strategy (for example poor stock selection or asset allocation) may result in underperformance against the Company's peers or its benchmark. The Board monitors performance at each Board meeting.
· Gearing
The Company has the ability under existing covenants to gear up to 25% of the Group's net assets, but in normal circumstances gearing would not be expected to exceed 15% and the overdraft facility currently available from HSBC Bank plc is limited to the lesser of £20 million and 25% of custody assets. In the event of a significant or prolonged fall in equity markets gearing would exacerbate the effect of the falling market on the Company's NAV per share and, consequently, its share price.
· Other financial risks
The Company minimises its risk associated with a counterparty failing to deliver securities or cash by dealing through organisations that have undergone rigorous due diligence by Henderson. Liquid funds are held almost entirely in UK interest bearing bank accounts or on short-term deposit. This, together with the portfolio mainly comprising investments in large and medium sized companies quoted on major equity markets, mitigates the exposure to liquidity risk.
· Internal control
The Board, in conjunction with the Audit Committee, regularly reviews the system of internal controls. These include controls to ensure that the Company's assets are safeguarded.
· Operational risks
Disruption to, or failure of, Henderson's accounting, dealing or payment systems or the custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. The Company is also exposed to the operational risk that one or more of its service providers may not provide the required level of service. The Board monitors the services provided by Henderson and its other suppliers and receives reports on the key elements in place to provide effective internal control.
· Discount control
The Board utilises the Company's buy-back powers to enhance net asset value per share and seek to limit the risk to shareholders and potential investors of a volatile discount. The Board keeps the absolute level of the discount in comparison to its peer group of investment trusts under regular review, with the aim of restricting the discount from rising much above 8% in normal market circumstances.
Statement under DTR 4.1.12
Each of the Directors confirms that, to the best of his or her knowledge:
· the Group financial statements, which have been prepared in accordance with IFRSs as adopted by the European Union on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Group; and
· the Annual Report includes a fair review of the development and performance of the business and the position of the Group and Parent Company, together with a description of the principal risks and uncertainties that it faces.
For and on behalf of the Board
Lance Moir
Director
15 April 2015
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Principal investments
as at 31 January 2015
Ranking 2015 2014 | Company | Principal activities | Geographical area | Valuation 2015 £'000 | Percentage of portfolio | |
1 | - | Dollar General | General retailers | United States | 5,427 | 3.3 |
2 | 2 | Macy's | General retailers | United States | 5,317 | 3.2 |
3 | 1 | Novartis | Pharmaceuticals | Switzerland | 5,069 | 3.1 |
4 | 50 | Western Digital | Technology hardware & equipment | United States | 4,571 | 2.8 |
5 | 4 | Oracle | Software & computer services | United States | 4,463 | 2.7 |
6 | 9 | Crown Holdings | Diversified metals & mining | United States | 4,362 | 2.6 |
7 | - | Rexel | Electronic & electrical equipment | France | 3,883 | 2.3 |
8 | 35 | Apple | Technology hardware & equipment | United States | 3,768 | 2.3 |
9 | 15 | Lockheed Martin | Aerospace & defence | United States | 3,738 | 2.3 |
10 | 7 | Pfizer | Pharmaceuticals & biotechnology | United States | 3,640 | 2.2 |
---------------- | ---------- | |||||
10 largest | 44,238 | 26.8 | ||||
11 | 14 | DBS | Banks | Singapore | 3,468 | 2.1 |
12 | 3 | Japan Tobacco | Tobacco | Japan | 3,466 | 2.1 |
13 | 36 | United Continental | Airlines | United States | 3,442 | 2.1 |
14 | 13 | Singapore Telecom | Fixed line telecommunications | Singapore | 3,402 | 2.1 |
15 | 17 | Wharf Holdings | Real estate investment services | Hong Kong | 3,398 | 2.1 |
16 | 11 | Twenty First Century Fox | Media | United States | 3,350 | 2.0 |
17 | 20 | Rentokil Initial | Industrial transportation | United Kingdom | 3,076 | 1.9 |
18 | 27 | Bristol-Myers Squibb | Pharmaceuticals & biotechnology | United States | 3,010 | 1.8 |
19 | 10 | Software & computer services | United States | 2,998 | 1.8 | |
20 | 53 | Limited Brands | General retailers | United States | 2,817 | 1.7 |
----------------- | ---------- | |||||
20 largest | 76,665 | 46.5 | ||||
21 | 39 | AIA Group | Life insurance | Hong Kong | 2,778 | 1.7 |
22 | 32 | Wells Fargo & Co | Banks | United States | 2,711 | 1.6 |
23 | 5 | Nestlé | Food producers | Switzerland | 2,675 | 1.6 |
24 | - | CTT Correios | Industrial transportation | Portugal | 2,615 | 1.6 |
25 | 59 | Flowers Foods | Food, beverage & tobacco | United States | 2,575 | 1.6 |
26 | 30 | Thomson Reuters | Media | Canada | 2,557 | 1.5 |
27 | 21 | JP Morgan Chase | Banks | United States | 2,536 | 1.5 |
28 | 38 | Telstra | Fixed line telecommunications | Australia | 2,531 | 1.5 |
29 | 41 | Zurich | Nonlife insurance | Switzerland | 2,453 | 1.4 |
30 | 19 | Syngenta | Chemicals | Switzerland | 2,382 | 1.4 |
------------------ | ----------- | |||||
30 largest | 102,478 | 61.9 | ||||
31 | 31 | Citigroup | Banks | United States | 2,345 | 1.4 |
32 | 18 | Lloyds Banking Group | Banks | United Kingdom | 2,278 | 1.4 |
33 | 22 | Volkswagen | Automobiles & parts | Germany | 2,259 | 1.4 |
34 | 24 | GlaxoSmithKline | Pharmaceuticals & biotechnology | United Kingdom | 2,201 | 1.3 |
35 | 23 | GKN | Automobiles & parts | United Kingdom | 2,195 | 1.3 |
36 | 25 | IBM | Software & computer services | United States | 2,174 | 1.3 |
37 | 37 | General Electric | General industrials | United States | 2,149 | 1.3 |
38 | 29 | Royal Dutch Shell | Oil & gas producers | United Kingdom | 2,105 | 1.3 |
39 | 42 | Exxon Mobil | Oil & gas producers | United States | 2,016 | 1.2 |
40 | - | Grifols SA | Pharmaceuticals & biotechnology | Spain | 2,010 | 1.2 |
------------------- | ----------- | |||||
40 largest | 124,210 | 75.0 | ||||
------------------- | ------------- | |||||
Total investments
| 165,576 ========== | 100.0 ========
| ||||
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Consolidated Statement of Comprehensive Income
Year ended 31 January 2015 | Year ended 31 January 2014 | |||||
Revenuereturn£'000 | Capitalreturn £'000 | Total£'000 | Revenue return£'000 | Capital return £'000 | Total £'000 | |
Dividends and other income | 4,461 | 82 | 4,543 | 4,736 | - | 4,736 |
Gains on investments held at fair value through profit or loss | - | 18,783 | 18,783 | - | 3,843 | 3,843 |
Net exchange (loss)/gain | - | (6) | (6) | - | 239 | 239 |
Net dealing profit | - | - | - | 126 | - | 126 |
-------- | --------- | --------- | ------- | ------- | -------- | |
Total income | 4,461 | 18,859 | 23,320 | 4,862 | 4,082 | 8,944 |
Expenses | ||||||
Management fee | (321) | (642) | (963) | (314) | (627) | (941) |
Other expenses | (401) | - | (401) | (508) | (53) | (561) |
-------- | --------- | --------- | -------- | -------- | -------- | |
Profit before finance costs and taxation | 3,739 | 18,217 | 21,956 | 4,040 | 3,402 | 7,442 |
Finance costs | ||||||
Interest payable and similar charges | (50) | (101) | (151) | (23) | (45) | (68) |
Dividends on preference stock | (13) | (25) | (38) | (13) | (25) | (38) |
----- | ------- | ------- | ----- | ----- | ------- | |
Total finance costs | (63) | (126) | (189) | (36) | (70) | (106) |
=== | ==== | ==== | === | === | ==== | |
Profit before taxation | 3,676 | 18,091 | 21,767 | 4,004 | 3,332 | 7,336 |
Taxation | (418) | - | (418) | (294) | - | (294) |
-------- | --------- | --------- | --------- | -------- | --------- | |
Net profit for the year and total comprehensive income | 3,258 | 18,091 | 21,349 | 3,710 | 3,332 | 7,042 |
===== | ===== | ===== | ===== | ===== | ===== | |
Return per ordinary share (basic and diluted) | 8.32p | 46.20p | 54.52p | 9.35p | 8.40p | 17.75p |
===== | ===== | ===== | ===== | ===== | ===== | |
The total column of this statement represents the Consolidated Statement of Comprehensive Income, prepared in accordance with IFRSs as adopted by the European Union.
The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Consolidated Statement of Changes in Equity
Year ended 31 January 2015 | ||||||
Called upshare capital £'000 | Share premium account£'000 | Capital redemption reserve £'000 | Retained earnings | |||
Capitalreserves £'000 | Other revenue reserve1£'000 | Total£'000 | ||||
Total equity at 1 February 2014 | 10,389 | 13,410 | 33,966 | 84,192 | 11,036 | 152,993 |
Total comprehensive income: | ||||||
Profit for the year | - | - | - | 18,091 | 3,258 | 21,349 |
Transactions with owners, recorded directly to equity: | ||||||
Equity dividends paid | - | - | - | - | (3,923) | (3,923) |
Buy-backs of ordinary shares and held in treasury | - | - | - | (4,333) | - | (4,333) |
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
Total equity at 31 January 2015 | 10,389 | 13,410 | 33,966 | 97,950 | 10,371 | 166,086 |
====== | ====== | ====== | ====== | ====== | ====== | |
Year ended 31 January 2014 | ||||||
Called upshare capital £'000 | Share premium account£'000 | Capital redemption reserve £'000 | Retained earnings | |||
Capitalreserves £'000 | Other revenue reserve1£'000 | Total £'000 | ||||
Total equity at 1 February 2013 | 10,389 | 13,410 | 33,966 | 81,039 | 11,294 | 150,098 |
Total comprehensive income: | ||||||
Profit for the year | - | - | - | 3,332 | 3,710 | 7,042 |
Transactions with owners, recorded directly to equity: | ||||||
Equity dividends paid | - | - | - | - | (3,968) | (3,968) |
Buy-backs of ordinary shares and held in treasury | - | - | - | (179) | - | (179) |
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
Total equity at 31 January 2014 | 10,389 | 13,410 | 33,966 | 84,192 | 11,036 | 152,993 |
====== | ====== | ====== | ====== | ====== | ====== | |
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1 The revenue reserve represents the amount of reserves distributable by way of dividend
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Parent Company Statement of Changes in Equity
Year ended 31 January 2015 | ||||||
Called upshare capital £'000 | Share premium account£'000 | Capital redemption reserve £'000 | Retain earnings | |||
Capitalreserves £'000 | Other revenue reserve1£'000 | Total £'000 | ||||
Total equity at 1 February 2014 | 10,389 | 13,410 | 33,966 | 85,209 | 10,019 | 152,993 |
Total comprehensive income: | ||||||
Profit for the year | - | - | - | 18,091 | 3,258 | 21,349 |
Transactions with owners, recorded directly to equity: | ||||||
Equity dividends paid | - | - | - | - | (3,923) | (3,923) |
Buy-backs of ordinary shares and held in treasury | - | - | - | (4,333) | - | (4,333) |
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
Total equity at 31 January 2015 | 10,389 | 13,410 | 33,966 | 98,967 | 9,354 | 166,086 |
====== | ====== | ====== | ====== | ====== | ====== | |
Year ended 31 January 2014 | ||||||
Called upshare capital £'000 | Share premium account£'000 | Capital redemption reserve £'000 | Retained earnings | |||
Capitalreserves £'000 | Other revenue reserve1£'000 | Total £'000 | ||||
Total equity at 1 February 2013 | 10,389 | 13,410 | 33,966 | 81,930 | 10,403 | 150,098 |
Total comprehensive income: | ||||||
Profit for the year | - | - | - | 3,458 | 3,584 | 7,042 |
Transactions with owners, recorded directly to equity: | ||||||
Equity dividends paid | - | - | - | - | (3,968) | (3,968) |
Buy-backs of ordinary shares and held in treasury | - | - | - | (179) | - | (179) |
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
Total equity at 31 January 2014 | 10,389 | 13,410 | 33,966 | 85,209 | 10,019 | 152,993 |
====== | ====== | ====== | ====== | ====== | ====== | |
1 The revenue reserve represents the amount of reserves distributable by way of dividend
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Consolidated and Parent Company Balance Sheets
At 31 January 2015 Consolidated£'000 |
At 31 January 2014 Consolidated£'000 | At 31 January 2015 Company £'000 | At 31 January 2014 Company £'000 | |
Non-current assets | ||||
Investments held at fair value through profit or loss | 165,576 | 152,116 | 165,576 | 152,116 |
Investment in subsidiary | - | - | 1,027 | 1,027 |
---------- | ---------- | ---------- | ---------- | |
165,576 | 152,116 | 166,603 | 153,143 | |
---------- | ---------- | ---------- | ---------- | |
Current assets | ||||
Taxation recoverable | 29 | 28 | 29 | 28 |
Other recievables | 142 | 145 | 142 | 145 |
Cash and cash equivalents | 2,086 | 2,188 | 1,361 | 1,463 |
---------- | ---------- | ---------- | ---------- | |
2,257 | 2,361 | 1,532 | 1,636 | |
---------- | ---------- | ---------- | ---------- | |
Total assets | 167,833 | 154,477 | 168,135 | 154,779 |
---------- | ---------- | ---------- | ---------- | |
Current liabilities | ||||
Other payables | (747) | (484) | (1,049) | (786) |
---------- | ---------- | ---------- | ---------- | |
(747) | (484) | (1,049) | (786) | |
---------- | ---------- | ---------- | ---------- | |
Non-current liabilities | ||||
3.75% cumulative preference stock | (1,000) | (1,000) | (1,000) | (1,000) |
---------- | ---------- | ---------- | ---------- | |
Net assets | 166,086 | 152,993 | 166,086 | 152,993 |
====== | ====== | ====== | ====== | |
Equity attributable to equityshareholders | ||||
Called-up share capital | 10,389 | 10,389 | 10,389 | 10,389 |
Share premium account | 13,410 | 13,410 | 13,410 | 13,410 |
Capital redemption reserve | 33,966 | 33,966 | 33,966 | 33,966 |
Capital reserve | 97,950 | 84,192 | 98,967 | 85,209 |
Revenue reserve | 10,371 | 11,036 | 9,354 | 10,019 |
---------- | ---------- | ---------- | ---------- | |
Total equity | 166,086 | 152,993 | 166,086 | 152,993 |
====== | ====== | ====== | ====== | |
Net asset value per ordinary share (basic and diluted) | 431.3p | 385.8p | 431.3p | 385.8p |
====== | ====== | ====== | ====== |
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Consolidated and Parent Company Cash Flow Statements
Year ended 31 January | ||||
Consolidated 2015£'000 | Consolidated 2014 £'000 | Company 2015 £'000 | Company 2014 £'000 | |
Operating activities | ||||
Profit before finance costs and taxation | 21,956 | 7,442 | 21,956 | 7,442 |
Increase in investments | (13,454) | (8,115) | (13,454) | (8,241) |
Decrease in receivables | 3 | 70 | 3 | 70 |
Increase/(decrease) in payables | 263 | (22) | 263 | (22) |
Taxation on investment income | (419) | (213) | (419) | (213) |
---------- | ---------- | ---------- | ---------- | |
Net cash inflow/(outflow) from operating activities | 8,349 | (838) | 8,349 | (964) |
---------- | ---------- | ---------- | ---------- | |
Financing activities | ||||
Buy-backs of ordinary shares and held in treasury | (4,333) | (179) | (4,333) | (179) |
Cumulative preference stock dividends paid | (38) | (38) | (38) | (38) |
Equity dividends paid | (3,923) | (3,968) | (3,923) | (3,968) |
Overdraft arrangement fee and interest paid | (151) | (68) | (151) | (68) |
---------- | ---------- | ---------- | ---------- | |
Net cash outflow from financing | (8,445) | (4,253) | (8,445) | (4,253) |
---------- | ---------- | ---------- | ---------- | |
Decrease in cash and cash equivalents | (96) | (5,091) | (96) | (5,217) |
Cash and cash equivalents at the start of the year | 2,188 | 7,040 | 1,463 | 6,441 |
Effect of foreign exchange rate changes | (6) | 239 | (6) | 239 |
---------- | ---------- | ---------- | ---------- | |
Cash and cash equivalents at the end of the year | 2,086 | 2,188 | 1,361 | 1,463 |
====== | ====== | ====== | ====== | |
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
Notes to the Financial Statements
1. | Accounting policies Henderson Global Trust plc ("the Company") is a company incorporated and domiciled in the United Kingdom under the Companies Act 2006 ("the Act"). The consolidated financial statements of the Company for the year ended 31 January 2015 comprise the Company and its subsidiary, Engandscot Limited, together referred to as the "Group".
The consolidated and parent company financial statements for the year ended 31 January 2015 have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union and with those parts of the Act applicable to companies reporting under IFRSs and IFRIC guidance. These comprise standards and interpretations approved by the International Accounting Standards Board, together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Financial Reporting Standards Committee that remain in effect, to the extent that IFRSs have been adopted by the European Union.
The financial statements have been prepared on a going concern basis and on the historical cost basis, as modified by the revaluation of investments held at fair value through profit or loss. Where presentational guidance set out in the AIC SORP is consistent with the requirements of IFRSs, the Directors have sought to prepare the financial statements on a basis consistent with the recommendations of the AIC SORP.
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2. | Fourth interim dividend |
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A fourth interim dividend of 2.5p per ordinary share, in lieu of a final dividend, in respect of the year ended 31 January 2015 was declared on 25 February 2015. The shares were marked ex-dividend on 5 March 2015 and the dividend was paid on 1 April 2015 to shareholders on the register on 6 March 2015. |
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3. | Dividends and other income | 2015 £'000 | 2014 £'000 |
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Revenue Income from quoted investments: |
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Franked UK dividends | 824 | 1,695 |
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UK property income distributions | 69 | 75 |
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Overseas dividends | 3,565 | 2,963 |
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4,458 | 4,733 |
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Other income: |
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Interest on deposits | 3 | 3 |
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---------- | ---------- |
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4,461 | 4,736 |
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Capital |
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Distribution proceeds from liquidated stock | 82 | - |
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4. | Management fee |
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Revenue return £'000 | 2015 Capital return £'000 |
Total £'000 | Revenue return £'000 | 2014 Capital return £'000 | Total £'000 |
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| Management fee | 321 | 642 | 963 | 314 | 627 | 941 |
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====== | ====== | ====== | ====== | ====== | ====== |
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Management fees are allocated one-third to revenue and two-thirds to capital. | |||||||||
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
5. | Taxation |
a) Analysis of charge for the year
Revenue return£'000 | 2015 Capital return£'000 | Total £'000 | Revenue return £'000 | 2014 Capital return £'000 |
Total £'000 | ||
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Overseas tax suffered | 418 | - | 418 | 294 | - | 294 | |
----------- | ---------- | ----------- | ----------- | ---------- | ----------- | ||
Current and total tax charge for the year | 418 | - | 418 | 294 | - | 294 | |
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b) Factors affecting tax charge for the year | |||||||
The tax assessed for the year is lower (2014: lower) than the standard rate of 21.33% (2014: 23.17%) of corporation tax in the UK for a medium or large company. The differences are explained below. | |||||||
Revenue return £'000 | 2015 Capital return £'000 | Total £'000 | Revenue return £'000 | 2014 Capital return £'000 | Total £'000 | |
Net profit on ordinary activities before taxation | 3,676 | 18,091 | 21,767 | 4,004 | 3,332 | 7,336 |
----------- | --------- | --------- | ----------- | --------- | --------- | |
Corporation tax at 21.33% (2014: 23.17%) | 784 | 3,859 | 4,643 | 928 | 772 | 1,700 |
Effects of: | ||||||
Capital profits not subject to corporation tax | - | (4,005) | (4,005) | - | (946) | (946) |
Non-taxable income | (895) | (18) | (913) | (1,101) | - | (1,101) |
Expenses not deductible for tax purposes | - | - | - | 3 | 18 | 21 |
Current year revenue not utilised | 111 | 164 | 275 | 170 | 156 | 326 |
Overseas tax suffered | 418 | - | 418 | 294 | - | 294 |
----------- | --------- | --------- | ----------- | --------- | --------- | |
Tax charge | 418 | - | 418 | 294 | - | 294 |
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c) Provision for deferred taxation
The deferred tax asset of £6,529,000 (2014: £6,298,000) in relation to unutilised expenses and non-trade loan relationship deficits of £32,645,000 (2014: £31,490,000) has not been recognised as it is unlikely that the Company will generate sufficient taxable profits in the foreseeable future to utilise these expenses.
Investment trusts are exempt from corporation tax on capital gains provided that they meet the tests under Section 1158 of the Corporation Tax Act 2010.
Due to the Company's tax status as an investment trust and the intention to continue meeting the conditions required to obtain approval of such status in the foreseeable future, the Company has not provided deferred tax on any capital gains arising on the revaluation or disposal of investments. |
HENDERSON GLOBAL TRUST PLC
Annual Financial Report for the year ended 31 January 2015
6. | Return per ordinary share | ||
The return per ordinary share figure is based on the net profit for the year of £21,349,000 (2014: profit of £7,042,000) and on 39,160,017 (2014: 39,686,814) ordinary shares, being the weighted average number of ordinary shares in issue during the year. There are no shares with a dilutive effect.
The return per ordinary share figure detailed above can be further analysed between revenue and capital, as below. | |||
2015 £'000 | 2014 £'000 | ||
Net revenue profit | 3,258 | 3,710 | |
Net capital profit | 18,091 | 3,332 | |
--------- | --------- | ||
Net total profit | 21,349 | 7,042 | |
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Weighted average number of ordinary shares in issue during the year | 39,160,017 | 39,686,814 | |
2015 |
2014 | ||
pence | pence | ||
Revenue return per ordinary share | 8.32 | 9.35 | |
Capital return per ordinary share | 46.20 | 8.40 | |
--------- | --------- | ||
Total return per ordinary share | 54.52 | 17.75 | |
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7. | Net asset value ("NAV") per ordinary share (Group and Company) The NAV per ordinary share is based on the net assets attributable to the ordinary shares of £166,086,000 (2014: £152,993,000) and on the 38,505,670 ordinary shares in issue at 31 January 2015 (2014: 39,660,381). | ||
8. | Transactions with the management company Under the terms of an agreement effective from 22 July 2014 (which replaced the agreement dated 18 July 2011 in order to reflect the appointment of an Alternative Investment Fund Manager in accordance with the requirements of the Alternative Investment Fund Managers Directive), the Company has appointed wholly owned subsidiaries of Henderson Group plc ("Henderson") to provide investment management, accounting, secretarial and administrative services. Henderson has contracted with BNP Paribas Securities Services to provide accounting and administration services.
The total of the management fees paid or payable to Henderson under the management agreement in respect of the year ended 31 January 2015 was £963,000 (2014: £1,021,000). The amount outstanding at 31 January 2015 was £329,000 (2014: £344,000).
In addition to the above services, Henderson has provided the Company with sales and marketing services. The total fees paid or payable for these services for the year ended 31 January 2015 was £63,000, excluding VAT, (2014: £55,000) of which £26,000 was outstanding at 31 January 2015 (2014: £4,000).
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9. |
HENDERSON GLOBAL TRUST PLC Annual Financial Report for the year ended 31 January 2015
Going concern The assets of the Company consist mainly of a portfolio of diversified securities that are readily realisable, and the Company has adequate financial resources to meet its liabilities and continue in operational existence for the foreseeable future. For these reasons, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. In reviewing the position as at the date of this report, the Board has considered "Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009" published by the Financial Reporting Council.
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10. | 2015 financial information The figures and financial information for 2015 are extracted from the Annual Report for that period and do not constitute the statutory accounts. The Company's Annual Report for the year ended 31 January 2015 has been audited but has not yet been delivered to the Registrar of Companies. The Independent Auditor's Report on the 2015 annual financial statements was unqualified, did not include a reference to any matter to which the auditor drew attention without qualifying the report, and did not contain any statements under section 498 of the Act.
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11. | 2014 financial information The figures and financial information for 2014 are extracted from the published Annual Report and Financial Statements for the year ended 31 January 2014 and do not constitute the statutory accounts for that year. The 2014 Annual Report and Financial Statements have been delivered to the Registrar of Companies and included the Independent Auditors' Report which was unqualified and did not contain a statement under section 498 of the Act. |
12. | Annual Report Copies of the Annual Report will be posted to shareholders shortly and will be available on the Company's website www.hendersonglobaltrust.com or in hard copy format from the registered office, 201 Bishopsgate, London EC2M 3AE. |
13. | Annual general meeting ("AGM") The Company's AGM will be held on Wednesday 3 June 2015 at 2.30 pm at the Company's registered office, 201 Bishopsgate, London EC2M 3AE.
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For further information contact:
James de Sausmarez Director and Head of Investment Trusts Henderson Global Investors Tel: 020 7818 3349 | Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Tel: 020 7818 3198 |
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
Related Shares:
HGL.L