29th Sep 2014 07:00
HENDERSON GLOBAL TRUST PLC
UNAUDITED RESULTS FOR THE HALF YEAR ENDED 31 JULY 2014
Financial Highlights
Shareholders' funds | At 31 July 2014 | At 31 January 2014 | |||||||
Net assets attributable to ordinary shareholders (£'000) |
156,507 |
152,993 | |||||||
Net asset value ("NAV") per ordinary share: | |||||||||
with debt(1)at par | 400.9p | 385.8p | |||||||
with debt at fair value | 401.9p | 386.8p | |||||||
Mid-market price per ordinary share | 363.0p | 349.5p | |||||||
Discount (2) | |||||||||
with debt at par | 9.5% | 9.4% | |||||||
with debt at fair value | 9.7% | 9.6% | |||||||
Half year ended31 July 2014 |
Half year ended31 July 2013 | ||||||||
Total return to equity shareholders | |||||||||
Revenue return after taxation (£'000) | 2,090 | 2,499 | |||||||
Capital return after taxation (£'000) | 5,703 | 10,834 | |||||||
----------- 7,793 ====== | --------- 13,333 ===== | ||||||||
Total return per ordinary share | |||||||||
Revenue | 5.29p | 6.29p | |||||||
Capital | 14.42p | 27.29p | |||||||
------------ 19.71p ======= | ---------- 33.58p ====== | ||||||||
Dividends per ordinary share | 5.00p | 5.00p | |||||||
Total return performance (including dividends reinvested) | 6 months % | 1 year % | 3 years % | 5 years % | 10 years % | ||||
NAV per ordinary share | 5.2 | 1.1 | 20.8 | 63.9 | 153.7 | ||||
Mid-market price per ordinary share | 5.3 | 0.1 | 17.6 | 54.6 | 211.3 | ||||
Benchmark index(3) | 6.7 | 4.6 | 34.8 | 82.6 | 136.9 | ||||
(1) Debt comprises the Company's cumulative preference stock.
(2) The discount is calculated using published daily net asset values that exclude current year revenue.
(3) 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.
Sources: Morningstar FundData using fair value NAV with income reinvested for 6 months, 1, 3, and 5 years and capital NAV plus income reinvested for 10 years. Benchmark returns are sourced from Thomson Reuters Datastream.
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.
Chairman's Statement
Equity markets continued to slowly move higher over the six months under review. However, market leadership is narrowing with a small number of stocks, often larger cap, being responsible for a disproportionate amount of this performance.
Performance
During the half year to 31 July 2014 the net asset value ("NAV") per ordinary share total return (including dividends reinvested) was 5.2% compared to a total return of 6.7% from the Company's benchmark, the MSCI All Country World Index (in sterling terms, total return). It is heartening that this performance under our new Fund Manager ranks at the higher end of our peer group albeit frustrating that we did not exceed the benchmark.
The share price total return was 5.3%. The average discount (excluding revenue) over the period was 9.3% compared with the sector average of 7.1%.
The Fund Manager's Review provides information on the factors which contributed to the Company's performance during the period.
Dividends
The Company paid a first interim dividend of 2.5p per share on 1 July 2014 and has declared a second interim dividend of 2.5p per share which will be paid to shareholders on 1 October 2014. The dividend yield generated by the Company's investments has reduced due to the move to a more global portfolio. However, the Company continues to generate a good dividend yield which, with a healthy revenue reserve, gives us plenty of room to maintain the current dividend level and hopefully grow it over time.
Discount management
The Company repurchased 626,194 shares during the period, which have been held in treasury. 224,435 shares have been bought between the end of the period and the date of this report. The Board remains committed to its policy of seeking to keep 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. The Company will therefore buy back shares as market conditions allow in order to reduce discount volatility and maintain liquidity in the shares.
Regulatory
In accordance with the Alternative Investment Fund Managers Directive, the Company has appointed Henderson Investment Funds Limited to act as its Alternative Investment Fund Manager. HSBC Bank plc has been appointed as the Company's depositary.
Outlook
Five years into the market recovery that started in 2009, we remain constructive on equities. Our view is supported by improving global economic data, reasonable valuation levels and the ability of central banks to continue to provide liquidity.
Richard Stone
Chairman
26 September 2014
Principal Risks and Uncertainties
The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:
· Market risk
· Performance risk
· Gearing
· Other financial risks
· Internal control
· Discount control
Information on risks and how they are managed is given in the annual report to 31 January 2014. In the view of the Board the principal risks and uncertainties set out in the annual report were unchanged over the last six months and are as applicable to the remaining six months of the financial year as they were to the six months under review.
Directors' Responsibility Statement
The Directors confirm that, to the best of their knowledge:
(a) the condensed set of financial statements has been prepared in accordance with the Accounting Standards Board's statement 'Half Yearly Financial Reports';
(b) this report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
(c) this report includes a fair review of the information required by the Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).
For and on behalf of the Board
Richard Stone
Chairman
26 September 2014
Fund Manager's Review
Performance
The Company's net asset value total return was 5.2% in the first half of the year. This performance ranks at the higher end of the peer group, even though it trails the MSCI World All Country Index performance of 6.7%.
Global equity markets continued to grind higher in the first half of 2014. However, the ride is becoming less smooth with market volatility increasing on the back of investors repositioning portfolios in response to the uncertainties that come with scaling back quantitative easing and potential interest rate hikes. The stock market rally that started in 2009 has largely been driven by multiple expansion, with 'easy money' creating asset price inflation. Now that this tailwind is slowing down, corporate earnings growth needs to take over as a driver of equity markets. The nervousness of investors can be explained by the fact that this new driver tends to be more volatile and that the starting point is one of uncertainty about the strength and sustainability of current corporate earnings growth.
Nervousness is leading to portfolio repositioning, which largely consists of profit taking in stocks that have performed well in recent years, and reinvesting the proceeds in out-of-favour areas. The Company's disciplined selling process has led us to start selling certain star performers ahead of the market rotation, especially stocks for which we saw no further upside such as Vodafone. We also regularly revisit areas and stocks that have been out-of-favour for a long time, illustrated by our recent investment in Rentokil. This leads to a balanced portfolio that contains both stocks with good momentum and stocks that have the potential to be future performers. The balance helps explain the good performance versus the peers, who might have had too much exposure to 'yesterday's winners' going into this rotation.
However, the market has not only been selling fully valued stocks, there was also a rotation out of stocks that performed well but still have good upside, such as Japanese banks. Similarly, money has been flowing into certain less popular markets which are out-of-favour for good reasons. Rotations that are not supported by fundamentals tend to be short-lived and it is our experience that it pays off to not follow the herd here. Instead, we have been investing additional funds in good investments that sold off for temporary reasons, and we continue to avoid certain out-of-favour areas with a poor risk/return profile such as utilities. This has cost some short-term performance versus the benchmark in the second quarter, but it should pay off going forward. We believe that our ability to have a longer-term investment horizon compared to an increasingly short-term oriented market is a key competitive advantage of the Company.
Portfolio activity
During the first half of 2014, we have added to the positions in Crown Holdings, Flowers Foods, Rentokil Initial and Western Digital and we have started new investments in CTT, Delphi, Dollar General and Rexel. We also received shares in Verizon as part of a Vodafone dividend early in the year and shares in DeNow as a spin-off from National Oilwell Varco.
We sold the investments in BBA Aviation, Burberry, Buru Energy, Canon, Legrand, Prada, Standard Chartered and Vodafone and we started taking profits in BorgWarner, British Land, HSBC, Nestlé and Novartis.
Looking at the overall portfolio positioning, the biggest changes were a reduction in the exposure to UK stocks from 20.8% to 16.2% of the portfolio, and an increase in the North American investments from 46.2% to 51.6% of the portfolio.
Market outlook
The tailwinds that led us to be positive on equities at the start of the year remain in place. Some of them are losing strength, but collectively they continue to support a rising market. The tailwinds are:
1) it has been a slow recovery since the recession of 2008, but global economic data continues to improve, even after taking into account the new slowdown in Europe;
2) quantitative easing ("QE") continues to provide liquidity support. We are further into the US tapering process than we were six months ago, but reduced US liquidity is compensated by increased QE in Japan and Europe;
3) equity valuations have moved up in recent years, but are still only at long-term average levels; and
4) equities continue to benefit from the lack of alternative investments.
The main headwind remains the fact that we are facing many so-called 'tail risks', things that could disrupt the normal business cycle. Developed market governments continue to carry high debt loads, emerging market governments face the tough task of navigating a step-down in economic growth, Europe is moving towards deflation and remains a currency union without a joint fiscal agenda and geopolitical risks have increased around the world.
All things considered, the portfolio remains fully invested. However, we are cognisant that we are in the second half of this market upturn rather than at the start, and therefore we continue to look for signals of a potential market peak. With room for market valuations to move higher, we turn our attention to substantially weaker economic data or a change in investor sentiment towards QE as the key signals of a peak in the market.
Wouter Volckaert
Fund Manager
26 September 2014
Portfolio Analysis
as at 31 July 2014
Geographical analysis | % of portfolio |
North America | 51.6 |
United Kingdom | 16.2 |
Continental Europe | 13.8 |
Pacific Rim | 12.5 |
Japan | 5.4 |
Other | 0.5 |
--------- | |
100.0 | |
===== |
Sector analysis | % of portfolio |
Financials | 18.8 |
Consumer discretionary | 14.3 |
Industrials | 12.1 |
Information technology | 11.3 |
Consumer staples | 10.4 |
Energy | 10.0 |
Health care | 9.5 |
Materials | 8.1 |
Telecommunications services | 5.5 |
--------- | |
100.0 | |
===== |
Principal Investments As at 31 July 2014 | Valuation £'000 | % of portfolio | |||
Company | Main activity | ||||
Macy's | General retailers | 4,278 | 2.7 | ||
Crown Holdings | Diversified metals & mining | 4,077 | 2.6 | ||
Novartis | Pharmaceuticals | 4,024 | 2.6 | ||
Japan Tobacco | Tobacco | 3,980 | 2.5 | ||
Dollar General | General retailers | 3,976 | 2.5 | ||
Oracle | Software & computer services | 3,828 | 2.4 | ||
Western Digital | Technology hardware & equipment | 3,684 | 2.4 | ||
Rexel | Electronic & electrical equipment | 3,572 | 2.3 | ||
ANZ Banking | Banks | 3,267 | 2.1 | ||
Singapore Telecom | Fixed line telecommunications | 3,220 | 2.1 | ||
10 largest | 37,906 | 24.2 | |||
DBS | Banks | 3,077 | 2.0 | ||
Rentokil Initial | Industrial transportation | 3,015 | 1.9 | ||
Wharf Holdings | Real estate investment services | 2,978 | 1.9 | ||
Pfizer | Pharmaceuticals | 2,975 | 1.9 | ||
Lockheed Martin | Aerospace & defence | 2,947 | 1.9 | ||
Twenty First Century Fox | Media | 2,847 | 1.8 | ||
Apple | Technology hardware & equipment | 2,734 | 1.8 | ||
Softbank | Mobile telecommunications | 2,647 | 1.7 | ||
Walgreen | Food & drug retailers | 2,627 | 1.7 | ||
Royal Dutch Shell | Oil & gas producers | 2,556 | 1.6 | ||
20 largest | 66,309 | 42.4 | |||
IBM | Software & computer services | 2,418 | 1.5 | ||
JP Morgan Chase | Banks | 2,391 | 1.5 | ||
Wells Fargo & Co | Banks | 2,363 | 1.5 | ||
Syngenta | Chemicals | 2,326 | 1.5 | ||
Suncor Energy | Oil & gas producers | 2,314 | 1.5 | ||
Nestlé | Food producers | 2,309 | 1.5 | ||
Lloyds Banking | Banks | 2,293 | 1.5 | ||
AIA Group | Life insurance | 2,284 | 1.5 | ||
Telstra | Fixed line telecommunications | 2,267 | 1.5 | ||
Bristol-Myers Squibb | Pharmaceuticals & biotechnology | 2,249 | 1.4 | ||
30 largest | 89,523 | 57.3 | |||
Flowers Foods | Food, beverage & tobacco | 2,237 | 1.4 | ||
Thomson Reuters | Media | 2,233 | 1.4 | ||
Citigroup | Banks | 2,173 | 1.4 | ||
CTT | Industrial transportation | 2,170 | 1.4 | ||
Philip Morris International | Tobacco | 2,161 | 1.4 | ||
GlaxoSmithKline | Pharmaceuticals & biotechnology | 2,155 | 1.4 | ||
Volkswagen | Automobiles & parts | 2,107 | 1.3 | ||
HSBC | Banks | 2,057 | 1.3 | ||
United Continental | Airlines | 2,047 | 1.3 | ||
GKN | Auto parts | 2,039 | 1.3 | ||
40 largest | 110,902 | 70.9 | |||
Other listed investments (30 stocks) | 44,758 | 28.7 | |||
Unlisted investments (4 stocks) | 691 | 0.4 | |||
Total investments | 156,351 | 100.0 | |||
Consolidated Statement of Comprehensive Incomefor the half year ended 31 July 2014
(Unaudited) Half year ended 31 July 2014 | (Unaudited) Half year ended 31 July 2013 | (Audited) Year ended 31 January 2014 | |||||||
Revenue return £'000 | Capital return £'000 |
Total £'000 | Revenue return £'000 | Capital return £'000 |
Total £'000 | Revenue return £'000 | Capital return £'000 |
Total £'000 | |
Dividends and other income (note 2) | 2,716 | - | 2,716 | 3,067 | - | 3,067 | 4,736 | - | 4,736 |
Gains on investments held at fair value through profit or loss | - | 6,075 | 6,075 | - | 10,953 | 10,953 | - | 3,843 | 3,843 |
Net exchange gain | - | 7 | 7 | - | 253 | 253 | - | 239 | 239 |
Net dealing profit | - | - | - | 49 | - | 49 | 126 | - | 126 |
-------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | |
Total income | 2,716 | 6,082 | 8,798 | 3,116 | 11,206 | 14,322 | 4,862 | 4,082 | 8,944 |
| |||||||||
Expenses | |||||||||
Management fees | (158) | (316) | (474) | (156) | (313) | (469) | (314) | (627) | (941) |
Other expenses | (183) | - | (183) | (274) | (31) | (305) | (508) | (53) | (561) |
-------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | |
Profit before finance costs and taxation | 2,375 | 5,766 | 8,141 | 2,686 | 10,862 | 13,548 | 4,040 | 3,402 | 7,442 |
Finance costs | |||||||||
Interest payable and similar charges | (25) | (50) | (75) | (7) | (15) | (22) | (23) | (45) | (68) |
Dividends on preference stock | (6) | (13) | (19) | (6) | (13) | (19) | (13) | (25) | (38) |
-------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | |
Total finance costs | (31) | (63) | (94) | (13) | (28) | (41) | (36) | (70) | (106) |
-------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | |
Profit before taxation | 2,344 | 5,703 | 8,047 | 2,673 | 10,834 | 13,507 | 4,004 | 3,332 | 7,336 |
-------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | |
Taxation | (254) | - | (254) | (174) | - | (174) | (294) | - | (294) |
Net profit for the period and total comprehensive income | 2,090 | 5,703 | 7,793 | 2,499 | 10,834 | 13,333 | 3,710 | 3,332 | 7,042 |
====== | ====== | ====== | ====== | ====== | ====== | ====== | ====== | ====== | |
Return per ordinary share (basic and diluted) (note 3) | 5.29p | 14.42p | 19.71p | 6.29p | 27.29p | 33.58p | 9.35p | 8.40p | 17.75p |
| |||||||||
The total columns of this statement represent the Consolidated Statement of Comprehensive Income, prepared in accordance with IFRS, 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.
The Group does not have any other comprehensive income and hence the net profit, as disclosed above, is the same as the Group's total comprehensive income.
All items in the above statement derive from continuing activities. No operations were acquired or discontinued during the period.
All income is attributable to the equity shareholders of Henderson Global Trust plc. There are no minority interests.
The accompanying notes are an integral part of these financial statements.
Consolidated Statement of Changes in Equityfor the half year ended 31 July 2014
Half year ended 31 July 2014 (unaudited) |
Called up share capital £'000 |
Share premium account£'000 |
Capital redemption reserve £'000 |
Retained earnings |
Total £'000 | |
Capital reserve £'000 | Revenue reserve(1) £'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 period to 31 July 2014 |
- |
- |
- |
5,703 |
2,090 |
7,793 |
Transactions with owners, recorded directly to equity: | ||||||
Equity dividends paid | - | - | - | - | (1,983) | (1,983) |
Buy-backs of ordinary shares and held in treasury |
- |
- |
- |
(2,296) |
- |
(2,296) |
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
Total equity at 31 July 2014 | 10,389 | 13,410 | 33,966 | 87,599 | 11,143 | 156,507 |
====== | ====== | ====== | ====== | ====== | ====== | |
Half year ended 31 July 2013 (unaudited) |
Called up share capital £'000 |
Share premium account£'000 |
Capital redemption reserve £'000 |
Retained earnings |
Total£'000 | |
Capital reserve £'000 | Revenue Reserve(1) £'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 period to 31 July 2013 |
- |
- |
- |
10,834 |
2,499 |
13,333 |
Transactions with owners, recorded directly to equity: | ||||||
Equity dividends paid | - | - | - | - | (1,985) | (1,985) |
Buy-backs of ordinary shares and held in treasury | - | - | - | (113)
| - | (113)
|
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | |
Total equity at 31 July 2013 | 10,389 | 13,410 | 33,966 | 91,760 | 11,808 | 161,333 |
====== | ====== | ====== | ====== | ====== | ====== | |
Year ended 31 January 2014 (audited) |
Called up share capital £'000 |
Share premium account£'000 |
Capital redemption reserve £'000 |
Retained earnings |
Total£'000 | |
Capital reserve £'000 | Revenue Reserve(1) £'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 to 31 January 2014 |
- |
- |
- |
3,332 |
3,710 |
7,042 |
Transactions with owners, recorded directly to equity: |
- |
- |
- |
- |
(3,968) |
(3,968) |
Equity dividends paid | ||||||
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 |
====== | ====== | ====== | ====== | ====== | ====== | |
(1)The revenue reserve represents the amount of reserves distributable by way of dividend.
The accompanying notes are an integral part of these financial statements.
Consolidated Balance Sheetat 31 July 2014
(Unaudited) At 31 July2014£'000 | (Unaudited) At 31 July 2013£'000 | (Audited) At 31 January 2014 £'000 | ||
Non-current assets | ||||
Investments held at fair value through profit or loss (note 8) |
156,351 | 160,233 |
152,116 | |
---------- | ---------- | ---------- | ||
Current assets | ||||
Balances due from brokers | 1,079 | 1 | - | |
Taxation recoverable | 133 | 110 | 28 | |
Other receivables | 99 | 379 | 145 | |
Cash and cash equivalents | 1,195 | 2,125 | 2,188 | |
---------- | ---------- | ---------- | ||
2,506 | 2,615 | 2,361 | ||
---------- | ---------- | ---------- | ||
Total assets | 158,857 | 162,848 | 154,477 | |
---------- | ---------- | ---------- | ||
Current liabilities | ||||
Balances due to brokers | (895) | - | - | |
Other payables | (455) | (515) | (484) | |
---------- | ---------- | ---------- | ||
(1,350) | (515) | (484) | ||
---------- | ---------- | ---------- | ||
Non-current liabilities | ||||
3.75% cumulative preference stock | (1,000) | (1,000) | (1,000) | |
---------- | ---------- | ---------- | ||
Net assets | 156,507 | 161,333 | 152,993 | |
====== | ====== | ====== | ||
Equity attributable to equity shareholders | ||||
Called-up share capital | 10,389 | 10,389 | 10,389 | |
Share premium account | 13,410 | 13,410 | 13,410 | |
Capital redemption reserve | 33,966 | 33,966 | 33,966 | |
Capital reserve | 87,599 | 91,760 | 84,192 | |
Revenue reserve | 11,143 | 11,808 | 11,036 | |
---------- | ---------- | ---------- | ||
Total equity | 156,507 | 161,333 | 152,993 | |
====== | ====== | ====== | ||
Net asset value per ordinaryshare (basic and diluted) (note 4) |
400.9p |
406.6p |
385.8p | |
====== | ====== | ====== | ||
The accompanying notes are an integral part of these financial statements. | ||||
Consolidated Cash Flow Statementfor the half year to 31 July 2014
(Unaudited) Half yearended 31 July2014£'000 | (Unaudited) Half yearended 31 July2013£'000 |
(Audited) Year ended 31 January 2014 £'000 | ||
Operating activities | ||||
Profit before finance costs and taxation | 8,141 | 13,548 | 7,442 | |
Increase in investments | (4,426) | (15,878) | (8,115) | |
Decrease/(increase) in receivables | 46 | (97) | 70 | |
Decrease in payables | (29) | (427) | (22) | |
Taxation on investment income | (359) | (175) | (213) | |
---------- | ---------- | ---------- | ||
Net cash inflow/(outflow) from operatingactivities |
3,373 |
(3,029) |
(838) | |
---------- | ---------- | ---------- | ||
Financing activities | ||||
Buybacks of ordinary shares and held in treasury | (2,296) | (113) | (179) | |
Cumulative preference stock dividends paid | (19) | (19) | (38) | |
Equity dividends paid | (1,983) | (1,985) | (3,968) | |
Bank arrangement fee and interest paid | (75) | (22) | (68) | |
---------- | ---------- | ---------- | ||
Net cash outflow from financing | (4,373) | (2,139) | (4,253) | |
---------- | ---------- | ---------- | ||
Decrease in cash and cash equivalents | (1,000) | (5,168) | (5,091) | |
Cash and cash equivalents at the start of the period | 2,188 | 7,040 | 7,040 | |
Effect of foreign exchange rate changes | 7 | 253 | 239 | |
---------- | ---------- | ---------- | ||
Cash and cash equivalents at the end of the period | 1,195 | 2,125 | 2,188 | |
====== | ====== | ====== |
The accompanying notes are an integral part of these financial statements.
Notes
1. | Accounting policies | ||||||||
The consolidated financial statements comprise the unaudited results of the Company and its subsidiary, Engandscot Limited, for the half year ended 31 July 2014. They have been prepared on a going concern basis and in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union and with the Statement of Recommended Practice for Investment Trusts ("SORP") dated January 2009, where the SORP is consistent with the requirements of IFRS.
|
| ||||||||
For the period under review the Company's accounting policies have not varied from those described in the annual report and financial statements for the year ended 31 January 2014. The financial statements have not been either audited or reviewed by the Company's auditors.
The Group accounts comprise the audited accounts of the Company and its subsidiary drawn up to the balance sheet date. The Statement of Comprehensive Income is only presented in consolidated form, as provided by Section 408 of the Companies Act 2006.
|
| ||||||||
2. | Dividends and other income | Half year ended | Half year ended | Year ended | ||||||||
31 July 2014 | 31 July 2013 | 31 January 2014 | ||||||||||
£'000 | £'000 | £'000 | ||||||||||
Revenue | ||||||||||||
Income from quoted investments: | ||||||||||||
Franked UK dividends | 483 | 1,251 | 1,695 | |||||||||
UK property income distributions | 38 | 37 | 75 | |||||||||
Overseas dividends | 2,194 | 1,778 | 2,963 | |||||||||
---------- | ---------- | ---------- | ||||||||||
2,715 | 3,066 | 4,733 | ||||||||||
Other income: | ||||||||||||
Interest on deposits | 1 | 1 | 3 | |||||||||
---------- | ---------- | ---------- | ||||||||||
2,716 | 3,067 | 4,736 | ||||||||||
======= | ======= | ======= | ||||||||||
3. Return per ordinary share
Return per ordinary share is based on the net profit attributable to the ordinary shares of £7,793,000 (half year ended 31 July 2013: £13,333,000; year ended 31 January 2014: £7,042,000) and on the 39,532,632 weighted average number of ordinary shares in issue (half year ended 31 July 2013: 39,699,166; year ended 31 January 2014: 39,686,814).
Revenue return per ordinary share is based on the net revenue return attributable to the ordinary shares of £2,090,000 (half year ended 31 July 2013: £2,499,000; year ended 31 January 2014: £3,710,000) and on the 39,532,632 weighted average number of ordinary shares in issue (half year ended 31 July 2013: 39,699,166; year ended 31 January 2014: 39,686,814).
Capital return per ordinary share is based on the net capital profit attributable to the ordinary shares of £5,703,000 (half year ended 31 July 2013: net profit of £10,834,000; year ended 31 January 2014: net profit of £3,332,000) and on the 39,532,632 weighted average number of ordinary shares in issue (half year ended 31 July 2013: 39,699,166; year ended 31 January 2014: 39,686,814).
4. | Net asset value per ordinary share |
| |
The net asset value per ordinary share is calculated on net assets of £156,507,000 (31 July 2013: £161,333,000; 31 January 2014: £152,993,000) and 39,034,187 (31 July 2013: 39,678,381; 31 January 2014: 39,660,381) ordinary shares in issue at the period end. | |||
5. | Management fee |
| |
Henderson Investment Funds Limited receives a fee which is calculated monthly at 0.05% (0.6% per annum) on the value of the Group's total assets. In determining the total assets on which the management fee is calculated, the value of any securities held by the Company in collective investment schemes managed by the Manager is excluded. Management fees are allocated one-third to revenue and two-thirds to capital.
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6. | Going concern | ||
The Directors believe that it is appropriate to adopt the going concern basis in preparing the financial statements. The assets of the Company consist mainly of securities that are readily realisable and, accordingly, the Company has adequate resources to continue in operational existence for the foreseeable future. | |||
7. | Interim dividend |
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A second interim dividend of 2.5p per ordinary share will be paid on 1 October 2014 to shareholders on the register of members on 12 September 2014. The Company's shares were quoted ex-dividend on 10 September 2014. Based on the number of shares in issue on 12 September 2014, the cost of this will be £972,000. A first interim dividend of 2.5p per ordinary share was paid on 1 July 2014. In total dividends of 5.0p per ordinary share have been declared for the half year ended 31 July 2014 (2013: 5.0p). | |||
8. | Investments held at fair value through profit or loss |
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At 31 July |
At 31 July |
At 31 January | ||||||
2014 | 2013 | 2014 | ||||||
£'000 | £'000 | £'000 | ||||||
Quoted: | ||||||||
United Kingdom | 25,206 | 35,157 | 31,577 | |||||
Overseas | 130,454 | 124,168 | 119,693 | |||||
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155,660 | 159,325 | 151,270 | ||||||
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Unquoted: | ||||||||
United Kingdom | - | 106 | 106 | |||||
Overseas | 691 | 802 | 740 | |||||
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691 | 908 | 846 | ||||||
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156,351 | 160,233 | 152,116 | ||||||
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9. | Related party transactions |
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Details of related parties are contained in the annual report, although it should be noted that with effect from 22 July 2014 Henderson Investment Funds Limited was appointed as the Company's Alternative Investment Fund Manager in place of Henderson Global Investors Limited as Investment Manager. Other than fees payable by the Company in the ordinary course of business, there have been no material transactions with the Company's related parties effecting the financial position or performance of the Group during the half year. | ||
10. | Comparative information |
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The financial information contained in this half year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half years ended 31 July 2014 and 31 July 2013 has not been audited or reviewed by the Company's auditors. The figures and financial information for the year ended 31 January 2014 are an extract based on the latest published consolidated accounts and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the independent auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11. | Operating segments The Directors consider that the Group has two operating segments, being the Parent Company, Henderson Global Trust plc, which invests in shares and securities for capital appreciation in accordance with the Company's published investment objective, and its wholly owned subsidiary, Engandscot Limited, which trades in securities to enhance Group returns. Discrete financial information for these sectors is reviewed regularly by the Manager and the Board who allocate resources and assess performance.
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12. | General information |
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a) Investment objective |
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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.
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b) Company status |
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Henderson Global Trust plc is registered in England and Wales, No. 237017, has its registered office at 201 Bishopsgate, London EC2M 3AE and is listed on the London Stock Exchange. The SEDOL/ISIN number is GB0000138402. The London Stock Exchange (EPIC) Code is HGL. The Company's Global Intermediary Identification Number (GIIN) is 83854G.99999.5L.826 and its LEI number is 2138004B0X0BN5L9D058.
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c) Directors and Secretary |
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The Directors of the Company are Richard Stone (Chairman), Vicky Hastings, Richard Hills and Lance Moir. The Corporate Secretary is Henderson Secretarial Services Limited, represented by Debbie Fish FCIS.
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d) Website | |||||||||||
Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonglobaltrust.com | |||||||||||
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13. | Half Year Report |
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The half year report will be available in typed format on the Company's website www.hendersonglobaltrust.com or from the Company's registered office, 201 Bishopsgate, London EC2M 3AE. An abridged version, the 'Half Year Update', will be circulated to shareholders in early October. | |||||||||||
Related Shares:
HGL.L