Final Results

1 November 2013 This announcement contains regulated information LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2013 31 August 31 August 2012 2013 % Change % Change Revenue return per ordinary share +5.1% -2.5% Dividends per ordinary share +4.9% +5.1% Total Returns: Net asset value per ordinary share ("NAV") +15.1% +6.1% FTSE All-Share Index +14.7% +6.1% Ordinary share price +27.6% 10.3% MANAGEMENT REPORT Chairman's Statement For the year ended 31 August 2013, London & St Lawrence's revenue return pershare increased by 5.1%, the dividend was increased by 4.9% and the net assetvalue total return increased by 15.1%. Performance for the year to 31 August 2013 Earnings and dividends Revenue return per share was 12.63p, an increase of 5.1%. Three quarterlydividends of 3p net per share were paid in February, May and August, and afourth quarterly dividend of 3.9p net per shares will be paid on 26 November2013, making a total dividend of 12.9p net per share, an increase of 4.9%. Net asset value total return London & St Lawrence's net asset value total return was a positive 15.1% whichcompares with 6.1% in the previous year. The FTSE All-Share produced a positivetotal return of 14.7%. As at 31 August 2013 London & St Lawrence's share price was at a premium of1.9% to net asset value. A year ago the share price was at a discount of 8%. Performance for the five years to 31 August 2013 Earnings and dividends The Company's annual dividend has grown by 16.2% over the last five years from11.1p to 12.9p per share. Net asset value total return Shareholders' net asset value total return has increased by 23.3% over the lastfive years, which compares with a increase of 18.9% for the FTSE All-ShareIndex. Expenses The Ongoing Charges, which is the investment management fee and other noninterest expenses as a percentage of shareholders' funds, was 0.71% (20120.64%). - 2 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2013 MANAGEMENT REPORT (continued) Principal Risks and Uncertainties The main risks arising from the Group's activities are market risk, interestrate risk and foreign currency risk. The Board regularly reviews and agreespolicies for managing each of these risks and they are summarised below. Thesepolicies have remained unchanged throughout the period under review. Market Price Risk Market risk arises mainly from uncertainty about future prices of financialinstruments used in the Group's operations. It represents the potential lossthe Group might suffer through holding market positions in the face of pricemovements. It is the Board's policy to hold an appropriate spread of investments in theportfolio in order to reduce both the statistical risk and the risk arisingfrom factors specific to a particular sector. Market prices are activelymonitored throughout the year and the Board meets regularly in order toconsider investment strategy. Cash Flow Interest Rate Risk Cash flow interest rate risk is the risk that the future cash flows of afinancial instrument will fluctuate because of changes in market interestrates. The Group's exposure to cash flow interest rate risk is primarilythrough the cash balances held which earn interest by reference to LIBOR or aninternational equivalent. Liquidity Risk The Group's assets comprise mainly of readily realisable securities which canbe sold to meet future funding commitments if necessary. Foreign Currency Risk The Group's total return and net assets are not significantly affected bycurrency translation movements as the majority of the Group's assets andrevenue are denominated in sterling. Statement of Directors' Responsibilities In accordance with Disclosure and Transparency Rule 4.1.12, the directorsstate, to the best of their knowledge, that: ● the financial statements, prepared in accordance with IFRSs give a true andfair view of the assets, liabilities, financial position and net return of theCompany; and ● the Report of the Directors includes a fair review of the development andperformance of the business and the position of the Company together with adescription 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 2013 Top 20 Investments as at 31 August 2013 The 20 largest investments, representing 69.7% (2012 68.3%) of the portfolio(convertibles and all classes of equity in any one company being treated as oneinvestment), are listed below. In accordance with the UKLA Listing Rules, thecomparative value as at 31 August 2012 is provided. Market values reflectchanges in the value of underlying shares and portfolio changes. Market Market Value Value 2013 2012 £'000 £'000 Consistent Unit Trust 12,421 11,527 Law Debenture Corporation 3,866 3,572 Merchants Trust 3,652 2,371 Witan Investment Trust 3,651 2,846 City of London Investment 3,572 3,049Trust Aberforth Geared Income 3,387 1,500 Bankers Investment Trust 3,025 2,697 Dunedin Income Growth Trust 2,933 2,516 TR Property Trust 2,753 2,157 Alliance Trust 2,751 2,377 Mercantile Trust 2,702 1,991 Foreign & Colonial Investment 2,700 2,270Trust Invesco Income Growth 2,678 2,198 Standard Life Equity Income 2,662 1,697 Edinburgh Investment Trust 2,657 2,282 Temple Bar 2,470 2,545 Scottish Mortgage & Trust 2,111 2,368 British Assets 1,779 1,198 Perpetual Income and Growth 1,731 1,393 Murray Income 1,721 1,155 * MORE - - 4 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2013 Consolidated Income Statement for the year ended 31 August 2013 Year ended 31 August 2013 Year ended 31 August 2012 Revenue Capital Total Revenue Capital Total £ Return £ Return £ Return £ '000 '000 '000 £'000 Return '000 £'000 Profit on investments held - 12,991 12,991 - 4,883 4,883at fair value throughprofit or loss Income from investments 3,714 3,714 3,612 3,612held at fair value throughprofit or loss (note 2) Other operating income 844 - 844 742 - 742(note 2) --------- --------- --------- --------- --------- --------- Gross revenue and capital 4,558 12,991 17,549 4,354 4,883 9,237gains/(losses) Expenses (695) (92) (787) (620) (63) (683) --------- --------- --------- --------- --------- --------- Net return/(loss) on 3,863 12,899 16,762 3,734 4,820 8,554ordinary activities beforefinance charges andtaxation Finance charges (14) - (14) (14) - (14) --------- --------- --------- --------- --------- --------- Net return/(loss) on 3,849 12,899 16,748 3,720 4,820 8,540ordinary activities beforetaxation Taxation on net return/ (220) - (220) (202) - (202)(loss) on ordinaryactivities --------- --------- --------- --------- --------- --------- Net return/(loss) on 3,629 12,899 16,528 3,518 4,820 8,338ordinary activities aftertaxation ===== ===== ===== ===== ===== ===== Return/(loss) per ordinary 12.63p 44.91p 57.54p 12.01p 16.45p 28.46pshare - basic and diluted (note3) ===== ===== ===== ===== ===== ===== The total columns of this statement represent the consolidated income statementof the Group. All revenue and capital items derive from continuing operations.No operations were acquired or discontinued during the year. The Group has norecognised 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 2013 Consolidated Statement of Changes in Shareholders' Funds for the years ended 31 August 2013 and 31 August 2012 Called up Capital Share Other Revenue Total share Redemption premium capital reserve capital Reserve account reserves Year ended 31 August £'000 £'000 £'000 £'000 £'000 £'0002013 At 31 August 2012 1,436 204 20,207 60,024 3,169 85,040 Net return/(loss) on - - - 12,899 3,629 16,528ordinary activitiesafter taxation First quarter dividend - - - - (862) (862)(3p) for the year ended31 August 2013 paid 28February 2013 Second quarter dividend - - - - (862) (862)(3p) for the year ended31 August 2013 paid 31May 2013 Third quarter dividend - - - - (862) (862)(3p) for the year ended31 August 2013 paid 30August 2013 Fourth quarter dividend - - - - (1,120) (1,120)(3.9p) for the yearended 31 August 2013will be paid 26 November2013 --------- ------ --------- --------- --------- --------- At 31 August 2013 1,436 204 20,207 72,923 3,092 97,862 ===== ==== ===== ===== ===== ===== Called up Capital Share Other Revenue Total share Redemption premium capital reserve capital Reserve account reserves Year ended 31 August £'000 £'000 £'000 £'000 £'000 £'0002012 At 31 August 2011 1,479 161 20,207 57,483 3,224 82,554 Net return/(loss) on - - - 4,820 3,518 8,338ordinary activitiesafter taxation First quarter dividend - - - - (823) (823)(2.8p) for the yearended 31 August 2012paid 28 February 2012 Second quarter dividend - - - - (815) (815)(2.8p) for the yearended 31 August 2012paid 31 May 2012 Third quarter dividend - - - - (815) (815)(2.8p) for the yearended 31 August 2012paid 30 August 2012 Fourth quarter dividend - - - - (1,120) (1,120)(3.9p) for the yearended 31 August 2012paid 30 November 2012 Own shares purchased and (43) 43 - (2,279) - (2,279)cancelled in year --------- ------ --------- --------- --------- --------- At 31 August 2012 1,436 204 20,207 60,024 3,169 85,040 ===== === ===== ====== ===== ====== - MORE - - 6 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2013 Consolidated Statement of Financial Position at 31 August 2013 2013 2012 £'000 £'000 Investments held at fair value through profit 94,281 81,253or loss Fixed Assets Intangible 2,160 2,160 ---------- ---------- 96,441 83,413 ---------- ---------- Current assets Debtors 880 984 Cash and cash equivalent 2,366 2,407 ---------- ---------- 3,246 3,391 ---------- ---------- Creditors: amounts falling due within one year (1,545) (1,484) ---------- ---------- Net current assets 1,701 1,908 ---------- ---------- Total assets less current liabilities 98,142 85,320 Preference Share Capital (280) (280) ---------- ---------- Total net assets 97,862 85,040 ====== ====== Capital and reserves Called up share capital 1,436 1,436 Share premium account 20,207 20,207 Capital redemption reserve 204 204 Other capital reserves 72,923 60,024 Revenue reserves 3,092 3,169 ---------- ---------- Shareholders' funds 97,862 85,040 ====== ====== Net asset value per ordinary share (note 5) 340.70p 296.06p ====== ====== - MORE - - 7 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2013 Consolidated Cash Flow Statement for the year ended 31 August 2013 Year ended Year ended 31 August 2013 31 August 2012 £'000 £'000 £'000 £'000 Profit before finance costs and tas 3,863 3,734 Decrease/(increase) in receivables 80 (164) Increase in payables 74 103 ------- ------- Cash generated from operating 4,017 3,673activities Taxation paid (209) (223) -------- -------- Net cash generated from operating 3,808 3,450activities Cash flows from investing activities Purchases of investments held at (9,174) (6,124)fair value Sales of investments held at fair 9,045 7,861value Net cash generated from investing ---------- (129) ---------- 1,737activities Cash flows from financing activities Dividends paid on ordinary shares (3,706) (3,573) Dividends paid on preference shares (14) (14) Purchase of own shares - (2,279) Net cash used in financing --------- (3,720) --------- (5,866)activities --------- --------- Net decrease in cash and cash (41) (679)equivalents Cash and cash equivalents at 2,407 3,086beginning of year --------- --------- Cash and cash equivalents at end of 2,366 2,407year ===== ===== - MORE - - 8 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2012 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 2013. The accounts are prepared in accordance with United Kingdom Generally Accepted Accounting Practice 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 2013 2012 £'000 £'000 Investment income Dividends UK 2,990 2,701 Dividends Overseas 16 16 Interest on fixed income securities 708 895 Deposit interest 5 8 Unit trust management fee 839 734 --------- --------- 4,558 4,354 --------- --------- 3. Return/(loss)per ordinary share - basic The return per ordinary share is based on the net return attributable to the ordinary shares of £16,528,410 (year ended 31 August 2012: £8,338,104) and on 28,723,944 ordinary shares (year ended 31 August 2012: 29,297,987) 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 2013 31 August 2012 £'000 £'000 Net revenue return 3,629 3,518 Net capital return/(loss) 12,899 4,820 ------------ ------------ Net total return/(loss) 16,528 8,338 ======= ======= Weighted average number of 28,723,944 29,297,987 ordinary shares in issue during the year Revenue return per ordinary 12.63p 12.01p share Capital return/(loss) per 44.91p 16.45p ordinary share --------- --------- Total return/(loss) per ordinary 57.54p 28.46p share ===== ===== 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 2013 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 £97,862,480 (2012: £85,039,459) and on 28,723,944 (2012: 28,723,944) shares in issue on 31 August 2012. 5. Issued share capital There were 28,723,944 ordinary shares of 5p in issue at 31 August 2013 (31 August 2012: 298,723,944) for the purpose of calculating the net asset value per ordinary share. 2013 Accounts The figures and financial information for the year ended 31 August 2013 arecompiled from an extract of the latest accounts and do not constitute statutoryaccounts. These accounts included the report of the auditors which wasunqualified and did not contain a statement under either section 498(2) orsection 498(3) of the Companies Act 2006. The accounts have not yet beendelivered to the Registrar of Companies. 2012 Accounts The figures and financial information for the year ended 31 August 2012 arecompiled from an extract of the latest published accounts and do not constitutethe statutory accounts for that year. Those accounts have been delivered to theRegistrar of Companies and included the report of the auditors which wasunqualified and did not contain a statement under either section 498(2) orsection 498(3) of the Companies Act 2006. Annual Report The Annual Report and Accounts will be posted to shareholders on 1 November2013 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 -