Final Results

31 October 2014 This announcement contains regulated information LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2014 31 August 31 August 2014 2013 % Change % Change Revenue return per ordinary share +10.7% +5.1% Dividends per ordinary share +5.4% +4.9% Total Returns: Net asset value per ordinary share ("NAV") +7.1% +15.1% FTSE All-Share Index +6.7% +14.7% Ordinary share price +7.6% +27.6% MANAGEMENT REPORT Chairman's Statement For the year ended 31 August 2014, London & St Lawrence's revenue return pershare increased by 10.7%, the dividend was increased by 5.4% and the net assetvalue total return increased by 7.1%. Performance for the year to 31 August 2014 Earnings and dividends Revenue return per share was 13.98p, an increase of 10.7%. Three quarterlydividends of 3.2p net per share were paid in February, May and August, and afourth quarterly dividend of 4p net per share will be paid on 25 November 2014,making a total dividend of 13.6p net per share, an increase of 5.4%. Net asset value total return London & St Lawrence's net asset value total return per ordinary share was apositive 7.1% which compares with 15.1% in the previous year. The FTSEAll-Share produced a positive total return of 6.7%. As at 31 August 2014 London & St Lawrence's share price was at a premium of2.5% to net asset value. A year ago the share price was at a premium of 1.9%. Performance for the five years to 31 August 2014 Earnings and dividends The Company's annual dividend has grown by 22.5% over the last five years from11.1p to 13.6p per share. Net asset value total return Shareholders' net asset value total return has increased by 44.5% over the lastfive years, which compares with a increase of 44.4% 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 0.86% (20130.71%). - 2 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2014 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 2014 Top 20 Investments as at 31 August 2014 The 20 largest investments, representing 64.7% (2013 69.7%) 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 2013 is provided. Market values reflectchanges in the value of underlying shares and portfolio changes. Market Market Value Value 2014 2013 £'000 £'000 Consistent Unit Trust 12,967 12,421 Aberforth Geared Income 4,824 3,387 Law Debenture Corporation 4,228 3,866 City of London Investment 4,083 3,572Trust Witan Investment Trust 3,676 3,651 TR Property Trust 3,617 2,753 Edinburgh Investment Trust 3,510 2,657 Merchants Trust 3,507 3,652 Dunedin Income Growth Trust 3,177 2,933 Mercantile Trust 2,922 2,702 Blackrock World Mining 2,831 1,071 Invesco Income Growth 2,803 2,678 Standard Life Equity Income 2,529 2,662 Scottish Mortgage & Trust 2,160 2,111 Bankers Investment Trust 1,999 3,025 Henderson Far East Income 1,905 618 Perpetual Income and Growth 1,882 1,731 Foreign & Colonial Investment 1,857 2,700Trust British Assets 1,856 1,779 Scottish American 1,828 1,527 * MORE - - 4 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2014 Consolidated Income Statement for the year ended 31 August 2014 Year ended 31 August 2014 Year ended 31 August 2013 Revenue Capital Total Revenue Capital Total Return Return Return Return £'000 £'000 £'000 £'000 £'000 £'000 Profit on investments held - 6,906 6,906 - 12,991 12,991at fair value throughprofit or loss Income from investments 4,003 4,003 3,714 3,714held at fair value throughprofit or loss (note 2) Other operating income 1,197 - 1,197 844 - 844(note 2) --------- --------- --------- --------- --------- --------- Gross revenue and capital 5,200 6,906 12,106 4,558 12,991 17,549gains/(losses) Expenses (914) (107) (1,021) (695) (92) (787) --------- --------- --------- --------- --------- --------- Net return/(loss) on 4,286 6,799 11,085 3,863 12,899 16,762ordinary activities beforefinance charges andtaxation Finance charges (14) - (14) (14) - (14) --------- --------- --------- --------- --------- --------- Net return/(loss) on 4,272 6,799 11,071 3,849 12,899 16,748ordinary activities beforetaxation Taxation on net return/ (253) - (253) (220) - (220)(loss) on ordinaryactivities --------- --------- --------- --------- --------- --------- Net return/(loss) on 4,019 6,799 10,818 3,629 12,899 16,528ordinary activities aftertaxation ===== ===== ===== ===== ===== ===== Return/(loss) per ordinary 13.98p 23.64p 37.62p 12.63p 44.91p 57.54pshare - 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 2014 Consolidated Statement of Changes in Shareholders' Funds for the years ended 31 August 2014 and 31 August 2013 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 £'0002014 At 31 August 2013 1,436 204 20,207 72,924 3,091 97,862 Net return/(loss) on - - - 6,799 4,019 10,818ordinary activitiesafter taxation First quarter dividend - - - - (919) (919)(3.2p) for the yearended 31 August 2014paid 28 February 2014 Second quarter dividend - - - - (919) (919)(3.2p) for the yearended 31 August 2014paid 31 May 2014 Third quarter dividend - - - - (926) (926)(3.2p) for the yearended 31 August 2014paid 29 August 2014 Fourth quarter dividend - - - - (1,158) (1,158)(4p) for the year ended31 August 2014 will bepaid 25 November 2014 New ordinary shares 11 826 - - 837issued --------- ------ --------- --------- --------- --------- At 31 August 2014 1,447 204 21,033 79,723 3,188 105,595 ===== ==== ===== ===== ===== ===== 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 60,025 3,168 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 2013paid 26 November 2013 --------- ------ --------- --------- --------- --------- At 31 August 2013 1,436 204 20,207 72,924 3,091 97,862 ===== === ===== ====== ===== ====== - MORE - - 6 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2014 Consolidated Statement of Financial Position at 31 August 2014 2014 2013 £'000 £'000 Investments held at fair value through profitor loss Fixed Assets 101,919 94,281 Intangible 2,160 2,160 ---------- ---------- 104,079 96,441 ---------- ---------- Current assets Debtors 2,208 880 Cash and cash equivalent 2,461 2,366 ---------- ---------- 4,669 3,246 ---------- ---------- Creditors: amounts falling due within one year (2,873) (1,545) ---------- ---------- Net current assets 1,796 1,701 ---------- ---------- Total assets less current liabilities 105,875 98,142 Preference Share Capital (280) (280) ---------- ---------- Total net assets 105,595 97,862 ====== ====== Capital and reserves Called up share capital 1,447 1,436 Share premium account 21,033 20,207 Capital redemption reserve 204 204 Other capital reserves 79,723 72,923 Revenue reserves 3,188 3,092 ---------- ---------- Shareholders' funds 105,595 97,862 ====== ====== Net asset value per ordinary share (note 5) 364.76p 340.70p ====== ====== - MORE - - 7 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2014 Consolidated Cash Flow Statement for the year ended 31 August 2014 Year ended Year ended 31 August 2014 31 August 2013 £'000 £'000 £'000 £'000 Profit before finance costs and tax 4,286 3,863 Decrease/(increase) in receivables (1,328) 80 Increase in payables 1,259 74 ------- ------- Cash generated from operating 4,217 4,017activities Taxation paid (219) (209) -------- -------- Net cash generated from operating 3,998 3,808activities Cash flows from investing activities Purchases of investments held at (11,320) (9,174)fair value Sales of investments held at fair 10,479 9,045value Net cash generated from investing ---------- (841) ---------- (129)activities Cash flows from financing activities Dividends paid on ordinary shares (3,885) (3,706) Dividends paid on preference shares (14) (14) Issue of new ordinary shares 837 - Net cash used in financing --------- (3,062) --------- (3,720)activities --------- --------- Net increase/(decrease) in cash and 95 (41)cash equivalents Cash and cash equivalents at 2,366 2,407beginning of year --------- --------- Cash and cash equivalents at end of 2,461 2,366year ===== ===== - MORE - - 8 - LONDON & ST LAWRENCE INVESTMENT COMPANY PLC Annual Financial Report for the year ended 31 August 2014 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 2014. 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 2014 2013 £'000 £'000 Investment income Dividends UK 3,185 2,990 Dividends Overseas 14 16 Interest on fixed income securities 804 708 Deposit interest 4 5 Unit trust management fee 1,193 839 --------- --------- 5,200 4,558 --------- --------- 3. Return/(loss)per ordinary share - basic The return per ordinary share is based on the net return attributable to the ordinary shares of £10,818,205 (year ended 31 August 2013: £16,528,410) and on 28,752,916 ordinary shares (year ended 31 August 2013: 28,723,944) 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 2014 31 August 2013 £'000 £'000 Net revenue return 4,019 3,629 Net capital return/(loss) 6,799 12,899 ------------ ------------ Net total return/(loss) 10,818 16,528 ======= ======= Weighted average number of 28,752,916 28,723,944 ordinary shares in issue during the year Revenue return per ordinary 13.98p 12.63p share Capital return/(loss) per 23.64p 44.91p ordinary share --------- --------- Total return/(loss) per ordinary 37.62p 57.54p 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 2014 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 £105,595,599 (2013: £97,862,480) and on 28,948,944 (2013: 28,723,944) shares in issue on 31 August 2014. 5. Issued share capital There were 28,948,944 ordinary shares of 5p in issue at 31 August 2014 (31 August 2013: 28,723,944) for the purpose of calculating the net asset value per ordinary share. 2014 Accounts The figures and financial information for the year ended 31 August 2014 werecompiled 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. 2013 Accounts The figures and financial information for the year ended 31 August 2013 werecompiled 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 November2014 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 plc01296 [email protected] - ENDS -