BlackRock New Energy Investment Trust plc
Annual results announcement
For the year ended 31 October 2013
Chairman's Statement
Cash Exit Proposals
Following the commitment given by the Board at the General Meeting in July 2012
to provide all shareholders with an option to realise their investment for cash
at Net Asset Value less applicable costs, a review of the options available has
been completed. The Board has decided to put forward proposals ("Cash Exit
Proposals") which will, if approved, allow ordinary shareholders to choose
between rolling over all or part of their investment in the Company in a tax
efficient manner into the BGF New Energy Fund (subject to a minimum of
£5 million electing to receive shares in BGF New Energy) or realising all or
part of their shareholding for cash. The BGF New Energy Fund is a sub-fund of
the Luxembourg-domiciled BlackRock Global Funds and has a similar investment
objective to that of the Company and is managed by the same management team at
BlackRock.
Participants in the BlackRock Investment Trust Savings Plan and ISA should note
that as the BGF New Energy Fund is not eligible for inclusion in these savings
scheme products, participants will be deemed to have elected for cash. However,
there will be an opportunity to re-invest the cash proceeds into other
investment trusts managed by the Investment Manager.
The Cash Exit Proposals will require the approval of both ordinary and
subscription shareholders in a general meeting. If the Cash Exit Proposals are
not approved by the ordinary shareholders then the Directors will consult with
shareholders as to the most appropriate course of action for the Company before
putting forward alternative proposals. If the Cash Exit Proposals are not
approved by the subscription shareholders, but are approved by the ordinary
shareholders, it is intended that the Board will put forward alternative
proposals for the liquidation of the Company (without a roll-over option) as
soon as reasonably practicable. A circular which contains full details of the
proposals and the notices of the meetings will be sent to shareholders on or
around 19 December 2013.
Basis of preparation of financial statements
In view of the Cash Exit Proposals described above the financial statements
have been prepared on a liquidation basis.
Performance
I am pleased to report that your Company has performed well over the year ended
31 October 2013, with the net asset value ("NAV") increasing by 27.4% and the
share price increasing by 42.6%. Over the same period the MSCI World Developed
Markets Index increased by 23.5% and the New Energy sector, as measured by the
WilderHill New Energy Global Innovation Index, increased by 63.4%. (All figures
are in sterling terms on a capital only basis.)
The underperformance relative to the WilderHill New Energy Global Innovation
Index partly reflects the Company's lower weighting in Renewable Energy
Technology stocks. The recovery in the wind and solar sectors which began to
gather pace last November continued during the course of the year under review
and this has been reflected in the change of sentiment towards some New Energy
stocks. Further details are given in the Investment Manager's Report.
Since the end of October, the Company's NAV has decreased by 3.3% and the share
price has fallen by 5.0%.
Earnings and dividends for the year ended 31 October 2013
The Company made a revenue profit of £339,000 (2012: £614,000). In order to
satisfy the requirements to maintain Investment Trust status the Directors are
declaring the payment of an interim dividend of 0.225p per ordinary share (2012:
final dividend of 0.15p per share). The dividend will be payable on 24 January
2014 to shareholders on the register on 27 December 2013 and will be marked
ex-dividend on 23 December 2013.
Subscription shares
During the year and up to the date of this report, the Company has issued
19,836 ordinary shares following the conversion of subscription shares into
ordinary shares. Total proceeds amounted to £12,000. At the date of this
report, the Company had 234,988,568 ordinary shares and 45,611,243 subscription
shares in issue.
Subscription shareholders have further opportunities to subscribe for all or
any of the ordinary shares to which their subscription shares relate on each of
31 January 2014, 30 April 2014 and 31 July 2014 (and if any such date is not a
business day, the succeeding business day) at 59p per ordinary share (all dates
inclusive), following which the subscription share rights will lapse.
In the event that the Company is put into members' voluntary liquidation in
connection with the Cash Exit Proposals described above, the subscription share
rights will lapse and the subscription shareholders will be entitled to receive
a payment out of the assets of the Company which will be determined in accordance
with the Company's Articles of Association. This payment to subscription
shareholders will be calculated by reference to the middle market quotations
(as derived from the Official List) for one subscription share for the 10
consecutive dealing days ending on 13 December 2013.
If you are in any doubt about the action you should take, you are recommended
immediately to seek your own personal financial advice from your independent
financial adviser, stockbroker, solicitor, accountant, bank manager or from an
appropriately qualified independent adviser authorised pursuant to the
Financial Services and Markets Act 2000.
New reporting requirements
There have been a number of revisions to reporting requirements for companies
with accounting periods beginning on or after 1 October 2012. These include the
addition of a new Strategic Report which is intended to replace the Business
Review section of the Directors' Report, providing insight into the Company's
objectives, strategy and principal risks, and enabling shareholders to assess
how effective Directors have been in promoting the success of the Company
during the course of the year under review. Other changes comprise additional
Audit and Management Engagement Committee reporting requirements on the
accounts and on the external audit process, and changes to the structure and
voting requirements in respect of the Directors' Remuneration Report which are
explained in more detail in the Directors' Remuneration Report in the Annual
Report.
Annual General Meeting
The Annual General Meeting ("AGM") of the Company will be held at BlackRock's
offices at 12 Throgmorton Avenue, London EC2N 2DL on Thursday, 6 February 2014
at 12.00 noon.
John Roberts
Chairman
13 December 2013
Strategic Report
The Directors present the strategic report of the Company for the year ended
31 October 2013. The aim of the Strategic Report is to provide shareholders
with the ability to assess how the Directors have performed their duty to
promote the success of the Company for shareholders' collective benefit.
The following paragraphs set out the Company's existing objective, business
model and investment policy but shareholders should note that if the Cash Exit
Proposals are approved then the Company will be put into members' voluntary
liquidation in February 2014 with an appropriate realisation of its assets
being undertaken in advance of that time. Further details about the Cash Exit
Proposals are given in the Chairman's Statement.
Principal activity
The Company carries on business as an investment trust and its principal
activity is portfolio investment.
Objective
The Company's objective is to generate long term capital growth for
shareholders of the Company.
Strategy
In order to achieve this objective, the Company invests globally in companies
that have a significant involvement in Renewable Energy Developers, Renewable
Energy Technology, Energy Efficiency, Alternative Fuels and Enabling Energy &
Infrastructure. There are no restrictions on the amount of the Company's assets
which may be invested in each of these areas. Shareholders should note that the
actual asset allocation will depend on the development of the investment
universe, market conditions and the judgement of the Investment Manager and the
Board of what is in the best interests of shareholders.
Business Model and Investment Policy
Investment is made predominantly in quoted stocks. The Company may invest in
unquoted companies but no new unquoted investments will be made if, as a
result, the value of unquoted investments held would exceed 25% of the
Company's gross assets.
While the Company may hold shares in other listed investment companies
(including investment trusts), the Board has agreed that the Company will not
invest more than 15% of its gross assets in other UK listed investment
companies.
The Company will not hold more than 15% of the market capitalisation of any one
company and no more than 15% of the gross asset value of the Company will be
held in any one class of security issued by a company as at the date any such
investment is made.
The Company may use derivatives for the purposes of efficient portfolio
management. Such derivatives may include options, futures and contracts for
difference traded, or not traded, on a recognised or designated investment
exchange. The aggregate exposure to such derivatives must not exceed 10% of the
gross assets of the portfolio.
The Company may, from time to time, use borrowings to gear its investment
policy or in order to fund the market purchase of its own ordinary shares.
Under the Company's Articles of Association, the net borrowings of the Company
may not exceed 100% of the value of the gross assets of the Company. However,
in normal market conditions borrowings are not expected to exceed 25% of net
assets. This gearing typically is in the form of an overdraft or short term
facility, which can be repaid at any time.
The Investment Manager generally aims to be fully invested but a net cash
position may be held when it is considered advantageous to do so. The
Investment Manager may also from time to time choose to hold fixed income
securities as an alternative to holding cash.
The Company's accounts are maintained in sterling. Although many investments
are denominated and quoted in currencies other than sterling, the Company does
not intend to employ a hedging policy against fluctuations in exchange rates.
No material change will be made to the investment policy without shareholder
approval.
Performance
In the year to 31 October 2013, the Company's NAV per share increased by 27.4%.
This compares with a rise in the MSCI World Developed Markets Index of 23.5%
and an increase in the WilderHill New Energy Global Innovation Index by 63.4%.
The Company's ordinary share price increased by 42.6%. (All figures in sterling
terms on a capital only basis.)
The Investment Manager's Report includes a review of the main developments
during the year together with information on investment activity within the
Company's portfolio.
Results and dividends
The results for the Company are set out in the Statement of Comprehensive
Income in the Annual Report. The total profit for the year, after taxation, was
£23,346,000 (2012: a loss of £4,408,000) of which the revenue profit amounted
to £339,000 (2012: £614,000). The Directors have declared the payment of an
interim dividend of 0.225p per ordinary share (2012: final dividend of 0.15p per
share). The dividend will be payable on 24 January 2014 to shareholders on the
register on 27 December 2013 and will be marked ex-dividend on
23 December 2013.
Key performance indicators
At each Board meeting, the Directors consider a number of performance measures
to help assess the Company's success in achieving its objectives. The key
performance indicators ("KPIs") used to measure the progress and performance of
the Company over time and which are comparable to those reported by other
investment trusts are set out below.
2013 2012
Net asset value +27.4% -5.0%
Ordinary share price 1 +42.6% +6.4%
Discount to net asset value 1.6% 12.1%
Revenue return per share 0.14p 0.26p
Dividend per share 0.225p 0.15p
Ongoing charges 2 1.4% 1.5%
MSCI World Developed Markets Index +23.5% +7.1%
WilderHill New Energy Global Innovation Index +63.4% -24.5%
------ ------
1. Calculated on a mid-market and capital only basis.
2. Calculated in accordance with AIC guidelines.
The Board monitors the above KPIs on a regular basis. Additionally, it
regularly reviews a number of indices and ratios to understand the impact on
the Company's relative performance of the various components such as asset
allocation and stock selection.
Principal risks
It is expected that the Company will be put into members' voluntary liquidation
in February 2014 as a consequence of the Cash Exit Proposals. Against the
background of this expectation, the key risks faced by the Company are set out
below. The Board has regularly reviewed and agreed policies for managing each
risk, as summarised below.
- Performance risk - The Board is responsible for deciding the investment
strategy to fulfil the Company's objectives and monitoring the performance of
the Investment Manager. An inappropriate strategy may lead to poor performance.
To manage this risk the Investment Manager provides an explanation of
significant stock selection decisions and the rationale for the composition of
the investment portfolio. The Board monitors and mandates an adequate spread of
investments in order to minimise the risks associated with particular countries
or factors specific to particular sectors, based on the diversification
requirements inherent in the Company's investment policy.
- Operational risk - In common with most other investment trust companies, the
Company has no employees. The Company therefore relies upon the services
provided by third parties and is dependent on the control systems of the
Investment Manager and the Company's other service providers. The security, for
example, of the Company's assets, dealing procedures, accounting records and
maintenance of regulatory and legal requirements, depend on the effective
operation of these systems. These are regularly tested and monitored and an
internal control report, which includes an assessment of risks together with
procedures to mitigate such risks, is prepared by the Investment Manager and
reviewed by the Audit and Management Engagement Committee twice a year. The
Custodian, Bank of New York Mellon (International) Limited ("BNYM") and the
Investment Manager also produce regular Service Organisation Control reports
(SOC 1) which are reviewed by their respective auditors and give assurance
regarding the effective operation of controls and are also reviewed by the
Audit and Management Engagement Committee.
- Market risk - Market risk arises from volatility in the prices of the
Company's investments. It represents the potential loss the Company might
suffer through holding investments in the face of negative market movements.
The Board considers asset allocation, stock selection, unquoted investments and
levels of gearing on a regular basis and has set investment restrictions and
guidelines which are monitored and reported on by the Investment Manager. The
Board monitors the implementation and results of the investment process with
the Investment Manager.
- Sector risk - The Company's portfolio, consisting of securities issued by
companies operating in a limited number of industries, carries greater risk and
may be more volatile than a portfolio composed of securities issued by
companies operating in a wide variety of different industries. Shares in
companies involved in the alternative energy and energy technology sectors have
been significantly more volatile than shares of companies operating in other
more established industries. The Company may invest in the shares of companies
with a limited operating history, some of which may never have traded
profitably. Investment in young companies with a short operating history is
generally riskier than investment in companies with a longer operating history.
Changes in government policies towards alternative energy and energy technology
may have an adverse effect on the Company's performance.
- Financial risk - The Company's investment activities expose it to a variety
of financial risks that include market price, foreign currency risk and
interest rate risk, liquidity risk and credit risk.
Future prospects
The future of the Company is dependent upon the outcome of the Cash Exit
Proposals vote in February 2014. If shareholders approve the Board's proposals
then the Company will be put into members' voluntary liquidation in February
2014 with an appropriate realisation of its assets being undertaken in advance
of that time. If the Cash Exit Proposals are not approved, the Board's main
focus until such time as the Company is put into liquidation, will continue to
be the achievement of capital growth and the future of the Company will be
dependent upon the success of the investment strategy. The outlook for the New
Energy sector is discussed in the Investment Manager's report.
Social, community and human rights issues
As an investment trust, the Company has no direct social or community
responsibilities. However, the Company believes that it is in shareholders'
interests to consider environmental, social and governance factors when
selecting and retaining investments.
Directors and employees
The Directors of the Company on 31 October 2013, all of whom held office
throughout the year, are John Roberts, Simon Batey, Mark O'Hare and Jim Skea.
The Board consists of four male and no female directors.
The Company does not have any employees.
By order of the Board
BlackRock Investment Management (UK) Limited
Secretary
13 December 2013
Related party transactions
The Investment Manager is regarded as a related party and details of the
investment management fees payable are set out in note 4.
The Board consists of four non-executive Directors, all of whom are considered
to be independent by the Board. No Director has a service contract with the
Company. For the year ended 31 October 2013 the annual remuneration of the
Chairman was £28,500, the Chairman of the Audit and Management Engagement
Committee was £21,500, and for the other Directors was £19,000 each. All
members of the Board hold shares in the Company. Dr Roberts holds 35,000
ordinary shares and 7,000 subscription shares, Mr Batey holds 30,680 ordinary
shares, Mr O'Hare holds 20,000 ordinary shares and Professor Skea holds
16,000 ordinary shares.
Statement of Directors' Responsibilities in respect of the Annual Report and
Financial Statements
The Directors are responsible for preparing the annual report, the Directors'
Remuneration Report and the financial statements in accordance with applicable
United Kingdom law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law, the Directors are required to prepare the
financial statements under IFRS as adopted by the European Union. Under company
law the Directors must not approve the financial statements unless they are
satisfied that they give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for the period.
In preparing these financial statements, the Directors are required to:
- present fairly the financial position, financial performance and cash flows
of the Company;
- select suitable accounting policies in accordance with IAS 8: Accounting
Policies, Changes in Accounting Estimates and Errors, and then apply them
consistently;
- present information, including accounting policies, in a manner that provides
relevant, reliable, comparable and understandable information;
- make judgements that are reasonable and prudent;
- state whether the financial statements have been prepared in accordance with
IFRS as adopted by the European Union, subject to any material departures
disclosed and explained in the financial statements;
- provide additional disclosures when compliance with the specific requirements
in IFRS as adopted by the European Union is insufficient to enable users to
understand the impact of particular transactions, other events and conditions
on the Company's financial position and financial performance; and
- prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy, at any time, the financial position of the Company and to
enable them to ensure that the financial statements comply with the Companies
Act 2006 and Article 4 of the IAS Regulations.
They are also responsible for safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and detection of fraud and other
irregularities. The Directors are also responsible for preparing the Strategic
Report, Directors' Report, the Directors' Remuneration Report and the Corporate
Governance Statement in accordance with Companies Act 2006 and applicable
regulations, including the requirements of the Listing Rules and the Disclosure
and Transparency Rules. The Directors have delegated responsibility to the
Investment Manager for the maintenance and integrity of the Company's corporate
and financial information included on the Investment manager's website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
Each of the Directors, confirm to the best of their knowledge that:
- the financial statements, which have prepared in accordance with IFRS as
adopted by the European Union, give a true and fair view of the assets,
liabilities, financial position and net return of the Company; and
- this Annual Report includes a fair review of the development and performance
of the business and the position of the Company, together with a description of
the principal risks and uncertainties that it faces.
The 2012 UK Corporate Governance Code also requires Directors to ensure that
the Annual Report and accounts are fair, balanced and understandable. In order
to reach a conclusion on this matter, the Board has requested that the Audit
and Management Engagement Committee advise on whether it considers that the
Annual Report and Financial Statements fulfils these requirements. The process
by which the Committee has reached these conclusions is set out in the Report
of the Audit and Management Engagement Committee in the Annual Report. As a
result, the Board has concluded that the Annual Report and Financial Statements
for the year ended 31 October 2013, taken as a whole, are fair, balanced and
understandable and provides the information necessary for shareholders to
assess the Company's performance, business model and strategy.
For and on behalf of the Board
John Roberts
Chairman
13 December 2013
Investment Manager's Report
Over the last 12 months the share price and net asset value (NAV) of the
Company have increased significantly. Equity markets have reacted positively to
the improved economic environments as well as loose monetary policies in both
the US and Europe. Against this backdrop, the Company has outperformed broader
equity markets (as measured by the MSCI World Developed Markets Index) in share
price and NAV terms. Performance was particularly driven by strong positive
moves in the renewable energy sub-sector and from economically sensitive
industrial companies.
Sector update
Regulatory support for the sector over the period was mixed, with encouraging
developments in the US and Asia, but a more challenged environment in Europe.
On the positive side, in January the US granted a one year extension for the
Production Tax Credit for wind power, removing a significant near term source of
uncertainty for the industry. Later in the year, the US Environmental
Protection Agency (EPA) announced regulations setting strict limits on the
amount of carbon pollution that can be generated by new US power plants. This
should be incrementally positive for renewable and gas power and makes it
almost impossible to build coal plants without carbon capture and storage.
In China, the government committed to a US$2 billion subsidy for domestic solar
installations. Pollution concerns encouraged further government response,
including an increase in its near term solar power installation target.
Elsewhere in Asia, South Korea's energy ministry decided that nuclear energy
should only account for 22-29% of the country's power generation capacity by
2035, compared with the 41% goal introduced in 2008. This should make way for
increased natural gas and renewable use.
Conversely, in Europe utilities continued to be targeted by governments either
to plug deficits or as a populist policy to reduce energy costs to consumers. In
the UK, the opposition party has proposed to freeze electricity bills and in
Germany proposals are being discussed to cut green subsidies. For an industry
that is making sizeable and extremely long term capital investments, a
predictable and reliable regulatory framework are essential. While neither the
UK nor Germany have yet committed to any policy amendments, even the mention of
change can be damaging. For instance, since the UK opposition party raised the
issue of energy bills in September, SSE, one of the large UK utilities, has
lost approximately 10% of its market value.
Despite regulatory uncertainty in Europe, the renewable technology sub-sector
performed well over the period, partly due to improvements at a company level.
For example, Vestas Wind Systems, the leading global wind turbine manufacturer,
rallied by 343% over the period, as positive news regarding its restructuring
programme and credit facilities, a tie-up with Mitsubishi in their offshore
wind operations and the arrival of a new management team helped restore
investor confidence.
In the solar sub-sector, regulatory support, particularly in China, has helped
stabilise solar prices. We are also encouraged by a proposal made by the US
Solar Energy Industries Association (SEIA) for a settlement between the US and
Chinese solar industries. This may be an early step to resolving the ongoing
trade war between the two countries. However, industry overcapacity persists
and most of the companies are still making a loss. Consequently we remain
relatively cautious on the sub-sector. Your Company has approximately 6.9%
invested in the solar sub-sector with a focus on low cost manufacturers. The
holdings have performed strongly: Trina Solar and Yingli Green Energy have
risen 253% and 255% respectively over the period. Not all companies in the
sub-sector have fared so well. In March 2013 Suntech filed for bankruptcy with
almost US$2 billion in debts. This is the first bankruptcy of a large, listed
Chinese solar company and may be an indication that the market is starting to
find some equilibrium. Your Company was not invested in Suntech.
Energy efficiency remains a key theme in energy markets. It is undeniable that
western economies are using less energy and this is starting to impact oil
demand trends. Oil demand is typically linked to GDP. Between 2000-2005, for
every 1% increase in GDP, oil demand increased by 0.6%. Over the past 5 years,
the energy intensity of the global economy has fallen and that number is just
0.3%. A number of companies are benefiting from this trend. For example,
Schneider Electric, whose efficiency technology helps reduce energy use, enjoyed
strong performance over the year. Similarly, Johnson Controls has been a stand
out performer, its share price up by 29% over the year.
In natural gas, there is a growing appreciation that North America enjoys a
significant cost advantage. This is spurring investment in gas processing,
pipelines, liquefied natural gas (LNG), petrochemicals and related industries.
Over the past 12 months, the US Department of Energy has approved 4 LNG export
terminals that in total will have the capacity to export almost 10% of today's
US gas production. Annual investment in new gas pipelines is expected to
increase from US$8 billion in 2011 to almost US$20 billion this year. Investors
are encouraged by the growing dividends generated by these companies,
predicated on an expanding asset base. A number of your Company's holdings are
benefiting from these trends. Quanta Services is building and commissioning new
gas pipelines, Altagas is an owner of natural gas infrastructure and KBR is an
engineering and construction company that is working to re-engineer and
construct new industrial complexes to use natural gas as a feedstock.
Another beneficiary of the increased use of gas in the US has been the
environment. In May 2013, the US Energy Information Agency published figures
showing that US CO2 emissions have fallen by 12% over the last 5 years, in part
due to increased use of natural gas and decreased use of coal.
Unquoted investments
The Company's unquoted investments, with the exception of LS9, have been
written down to a zero valuation (previously valued at £231,000) as the
financial statements have been prepared on a liquidation basis. We are in late
stage negotiations for the sale of LS9 and it has therefore been valued at its
expected realisation price.
Prospects
Within the New Energy sector, the Company has been positioned to benefit from
areas of the market that are experiencing strong near term growth. We continue
to be positive on the prospects for the enabling energy and infrastructure
sub-sector, certain energy efficiency gas players and natural gas. The natural
gas revolution and power grid expansion in the US have sparked an investment
up-cycle in energy infrastructure spending that continues to gather momentum.
Energy efficiency is benefiting from corporate cost-saving and government
legislation to incentivise the adoption of energy efficiency technology. These
all appear to be trends that will continue for some years.
We remain relatively cautious on the outlook for renewable energy technology
companies. While we are encouraged that pricing has stabilised and some
companies are undertaking restructuring programmes, underlying profitability
still needs to be addressed. It is our view that share prices do not correctly
reflect corporate performance in all cases. We will monitor this situation
carefully and continue to make selective investments as appropriate.
New Energy sector fundamentals have clearly improved over the past year and the
long term outlook remains robust. The near term performance of the sector and
the Company, though, will likely be predominantly driven by broader
macroeconomic events. While some economic risks have receded, many still
remain. In particular, we are monitoring the trajectory of US monetary and
fiscal policy and efforts by the Chinese government to rebalance the economy,
as these events will likely set the tone for equity markets in 2014.
Robin Batchelor and Poppy Allonby
BlackRock Investment Management (UK) Limited
13 December 2013
Ten largest investments
At 31 October 2013
Set out below is a brief description by the Investment Manager of the Company's
ten largest investments.
Novozymes (5.4% (2012: 5.7%), Denmark, www.novozymes.com) generates over 90% of
its revenues from the development, production and distribution of enzymes. Its
enzymes are used in the production of detergents, foods and alternative fuels.
Through the use of enzymes, the biofuels industry achieves higher yields and
thus strengthens its sustainability profile. Novozymes is developing enzymes
for use in second generation cellulosic ethanol production.
Johnson Controls (5.0% (2012: 4.6%), USA, www.johnsoncontrols.com) is a
diversified industrial company operating across three divisions: Building
Efficiency, Automotive Experience and Power Solutions. The company is a
provider of building control and energy management solutions, as well as a
leading manufacturer of advanced batteries used in hybrid and electric
vehicles. The company opened the world's first lithium-ion battery
manufacturing facility in France in 2008, and their facility in Michigan, USA
was the first in the country to produce complete lithium-ion battery cells
(2011).
ITC Holdings (4.8% (2012: 4.7%), USA, www.itc-holdings.com) is the largest
independent electricity transmission company in the US, serving a combined peak
load of over 26GW. The company operates power grids across Kansas, Oklahoma,
Michigan, Minnesota, Missouri, Illinois and Iowa. Growth in ITC's asset base is
being driven by efficiency investments designed to reduce grid losses and by
grid expansion focused on absorbing increasing volumes of renewable energy
capacity.
Schneider Electric (4.4% (2012: 4.2%), France, www.schneider-electric.com) is a
leading global player in energy management and a key beneficiary of the growing
demand for energy efficiency products. The company currently operates across
five divisions (Partner [Power], Infrastructure, Industry, IT, Buildings) and
generates over one-third of its revenues from energy efficiency products and
solutions.
NextEra Energy (4.3% (2012: 4.5%), USA, www.nexteraenergy.com) is a diversified
US utility. Its unregulated division is the largest operator of wind farms in
North America, with 10.1GW of net installed capacity at the end of 2012. Its
regulated business is regarded as one of the cleaner electricity fleets among
US utilities, given a high weighting to natural gas as a fuel source.
EDP Rénovaveis (4.1% (2012: 3.7%), Portugal, www.edpr.com) is the World's third
largest wind energy company, with 8GW of installed capacity at the end of 2012.
The company's wind farm capacity is split with around half in Europe (mainly
Spain) and half in the US. EDP Rénovaveis has built up a significant project
pipeline to support its future capacity expansion plans.
Regal Beloit (3.9% (2012: 1.0%), USA, www.regalbeloit.com) produces electric
motors, generators, power transmission and other electrical products. Regal
Beloit's products help to improve efficiency, embed intelligence and lower
system costs. The company's energy efficient products are a key driver of
growth. Between 2005 and 2012 energy efficient product sales have grown at a
compound annual growth rate of 23%.
ABB (3.9% (2012: 3.1%), Switzerland, www.abb.com) is a leader in power and
automation technologies which operates across five divisions, including Power
Products, Power Systems, Discrete Automation & Motion, Low Voltage Products and
Process Automation. ABB's products are used in renewable energy plants
(including solar, wind and hydroelectric installations), smart grids and energy
efficient solutions.
Vestas Wind Systems (3.8% (2012 2.0%), Denmark, www.vestas.com) is the market
leader in the manufacture of wind turbines. Vestas products account for 19% of
total worldwide wind capacity, it’s main customers are utilities. Over the last
12 months the company has embarked on a restructuring program and replaced the
senior management team.
Johnson Matthey (3.8% (2012 3.1%), UK, www.matthey.com) is a speciality
chemical company underpinned by technology and innovation. A leader in
sustainable technologies, emission control technologies account for over half
of sales (ex platinum metals). As such the company is a beneficiary of growing
climate regulation around the world.
All percentages reflect the value of the holding as a percentage of total
investments. The percentages in brackets represent the value of the holding as
at 31 October 2012. Together, the ten largest investments represents 43.3% of
total investments (ten largest investments at 31 October 2012: 41.1%).
Sector and Geographical Allocations
Sector Allocation as at 31 October
% of investments
2013 2012
Enabling Energy & Infrastructure 28.9 33.9
Energy Efficiency 26.0 19.9
Renewable Energy Developers 21.8 22.5
Alternative Fuels 12.6 18.8
Renewable Energy Technology 10.7 4.9
----- -----
100.0 100.0
===== =====
Source: BlackRock.
Geographical Allocation as at 31 October
% of investments
2013 2012
United States 33.9 37.0
Denmark 9.1 7.6
United Kingdom 8.4 7.1
China 8.1 4.3
France 7.0 6.3
Germany 5.3 3.3
Canada 5.3 8.3
Portugal 4.1 3.7
Switzerland 3.9 3.1
South Africa 2.4 3.1
Ireland 2.4 1.4
Finland 2.4 3.1
Italy 2.3 1.9
Belgium 1.8 1.8
Australia 1.6 1.8
Brazil 1.2 2.0
Japan 0.8 2.6
Spain - 1.6
----- -----
100.0 100.0
===== =====
Source: BlackRock.
Investments
31 October 2013
Country Market value % of
£'000 Investments
Enabling Energy & Infrastructure
ITC Holdings USA 5,011 4.8
ABB Switzerland 3,982 3.9
Johnson Matthey UK 3,953 3.8
Transcanada Canada 2,646 2.6
Altagas Canada 2,559 2.5
KBR USA 2,299 2.2
Quanta Services USA 2,201 2.1
General Cable USA 1,989 1.9
Umicore Belgium 1,833 1.8
National Grid UK 1,651 1.6
Kinder Morgan USA 1,560 1.5
Canada Lithium Canada 227 0.2
Azure Dynamics** Canada - -
Medis Technologies** USA - -
------ ----
29,911 28.9
------ ----
Energy Efficiency
Johnson Controls USA 5,226 5.0
Schneider Electric France 4,540 4.4
Regal Beloit USA 4,047 3.9
Air Liquide France 2,699 2.6
Linde Germany 2,500 2.4
Kingspan Ireland 2,439 2.4
Veeco Instruments USA 1,508 1.5
Itron USA 1,296 1.3
EnerNOC USA 1,076 1.0
Azbil Japan 840 0.8
Aixtron Germany 296 0.3
Echelon USA 245 0.2
Vacon Finland 207 0.2
Tantalus Systems** Canada - -
------ ----
26,919 26.0
------ ----
Renewable Energy Developers
NextEra Energy USA 4,411 4.3
EDP Rénovaveis Portugal 4,262 4.1
SSE UK 2,741 2.7
Enel Green Power Italy 2,400 2.3
Fortum Finland 2,201 2.2
China Suntien Green Energy China 1,988 1.9
China Longyuan Power China 1,942 1.9
Cemig Brazil 1,252 1.2
Ormat Technologies USA 512 0.5
Covanta USA 449 0.4
Greenko* UK 350 0.3
Ram Power Canada 3 -
Homeland Renewable Energy** USA - -
------ ----
22,511 21.8
------ ----
Alternative Fuels
Novozymes Denmark 5,508 5.3
Archer Daniels Midland USA 2,749 2.7
Sasol South Africa 2,475 2.4
Oil Search Australia 1,693 1.6
Clean Energy Fuels USA 460 0.5
LS9** USA 79 0.1
Mascoma** USA - -
Mascoma 8% 01/08/2016** USA - -
------ ----
12,964 12.6
------ ----
Renewable Energy Technology
Vestas Wind Systems Denmark 3,959 3.8
Trina Solar China 3,651 3.6
Wacker Chemie Germany 2,396 2.3
Yingli Green Energy China 746 0.7
SMA Solar Technology Germany 317 0.3
Centrotherm Photovoltaics Germany 27 -
Pelamis Wave Power** UK - -
------ ----
11,096 10.7
------ ----
Total investments 103,401 100.0
======= =====
Total investments - fair value 103,401
Realisation costs - estimated disposal costs (828)
-------
Total investments - net realisable value 102,573
=======
Application of the liquidation basis of preparation requires net realisable or
settlement values to be reflected. The above reconciliation shows this in
respect of the investments as at 31 October 2013.
* Quoted on AIM.
** Unquoted investment, at Directors' valuation.
All investments are in equity shares unless otherwise stated.
The number of investments held at 31 October 2013 was 56 (2012: 65).
Statement of Comprehensive Income (liquidation basis)
for the year ended 31 October 2013
2013 2012 2013 2012 2013 2012
Revenue Revenue Capital Capital Total Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Income from investments
held at fair value
through profit or loss 3 2,417 2,028 - - 2,417 2,028
Other income 3 8 7 - - 8 7
------ ------ ------ ------ ------ ------
Total revenue 2,425 2,035 - - 2,425 2,035
------ ------ ------ ------ ------ ------
Gains/(losses) on
investments held at fair
value through profit or
loss - - 23,011 (5,022) 23,011 (5,022)
------ ------ ------ ------ ------ ------
2,425 2,035 23,011 (5,022) 25,436 (2,987)
------ ------ ------ ------ ------ ------
Expenses
Investment management and
performance fees 4 (1,094) (922) - - (1,094) (922)
Other expenses 5 (328) (355) (4) - (332) (355)
Liquidation costs 5 (418) - - - (418) -
------ ------ ------ ------ ------ ------
Total operating expenses (1,840) (1,277) (4) - (1,844) (1,277)
------ ------ ------ ------ ------ ------
Profit/(loss) before
taxation 585 758 23,007 (5,022) 23,592 (4,264)
------ ------ ------ ------ ------- ------
Taxation (246) (144) - - (246) (144)
------ ------ ------ ------ ------- ------
Net profit/(loss) for the
year 339 614 23,007 (5,022) 23,346 (4,408)
====== ====== ======= ====== ======= ======
Earnings/(loss) per
ordinary share - basic
and fully diluted 7 0.14p 0.26p 9.79p (2.14p) 9.93p (1.88p)
====== ====== ======= ====== ======= ======
The total column of this statement represents the Statement of Comprehensive
Income, prepared in accordance with International Financial Reporting Standards
("IFRS"), as adopted by the European Union. The supplementary revenue and capital
columns are both prepared under guidance published by the Association of
Investment Companies ("AIC"). All items in the above statement derive from
operations which will continue until such time as the Company commences the
realisation of its assets in connection with the Cash Exit Proposals.
The Company does not have any other recognised gains or losses. The net profit/
(loss) for the year disclosed above represents the Company's total
comprehensive income.
Statement of Changes in Equity (liquidation basis)
for the year ended 31 October 2013
Called
up Share Capital
share premium Special redemption Capital Revenue
capital account reserve reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
For year ended
31 October 2013
At 31 October 2012 12,799 24,541 175,741 53 (123,827) (5,403) 83,904
Total comprehensive
income:
Net profit for the
year - - - - 23,007 339 23,346
Dividends paid - - (353) - - - (353)
Exercise of
subscription shares 1 9 - - - - 10
Cancellation of
treasury shares (595) - - 595 - - -
------ ------ ------- --- -------- ------ -------
At 31 October 2013 12,205 24,550 175,388 648 (100,820) (5,064) 106,907
------ ------ ------- --- -------- ------ -------
For year ended
31 October 2012
At 31 October 2011 12,796 24,505 175,741 53 (118,805) (6,017) 88,273
Total comprehensive
income:
Net (loss)/profit
for the year - - - - (5,022) 614 (4,408)
Transactions with
owners, recorded
directly to equity:
Exercise of
subscription shares 3 36 - - - - 39
------ ------ ------- --- -------- ------ ------
At 31 October 2012 12,799 24,541 175,741 53 (123,827) (5,403) 83,904
------ ------ ------- --- -------- ------ ------
Statement of Financial Position (liquidation basis)
as at 31 October 2013
2013 2012
Notes £'000 £'000
Non current assets
Investments held at fair value through profit
or loss - 79,186
------- ------
Current assets
Investments held at fair value through profit
or loss (less disposal costs) 102,573 -
Other receivables 495 1,323
Cash and cash equivalents 5,839 5,183
------- ------
108,907 6,506
------- ------
Total assets 108,907 85,692
------- ------
Current liabilities
Other payables (1,582) (1,788)
Liquidation accruals (418) -
------- ------
(2,000) (1,788)
------- ------
Net assets 106,907 83,904
======= ======
Equity attributable to equity holders
Called up share capital 8 12,205 12,799
Share premium account 24,550 24,541
Special reserve 175,388 175,741
Capital redemption reserve 648 53
Capital reserves (100,820) (123,827)
Revenue reserve (5,064) (5,403)
------- --------
Total equity 106,907 83,904
======= ========
Net asset value per ordinary share - diluted and
undiluted 7 45.50p 35.71p
====== ======
Cash Flow Statement (liquidation basis)
for the year ended 31 October 2013
2013 2012
£'000 £'000
Operating activities
Profit/(loss) before taxation 23,592 (4,264)
(Gains)/losses on investments held at fair value through
profit or loss including transaction costs (23,011) 5,022
(Increase)/decrease in other receivables (15) 22
Increase in other payables 703 324
Decrease/(increase) in amounts due from brokers 784 (1,062)
Decrease in amounts due to brokers (491) (698)
Net movement on investments held at fair value through
profit or loss (275) 560
Scrip dividends included in investment income (101) (90)
----- -----
Net cash inflow/(outflow) from operating activities before
interest and taxation 1,186 (186)
----- -----
Taxation recovered 59 44
Taxation on investment income included within gross income (246) (181)
----- -----
Net cash inflow/(outflow) from operating activities 999 (323)
----- -----
Financing activities
Shares issued 10 39
Equity dividends paid (353) -
----- -----
Net cash (outflow)/inflow from financing activities (343) 39
----- -----
Increase/(decrease) in cash and cash equivalents 656 (284)
Cash and cash equivalents at start of year 5,183 5,499
Effect of foreign exchange rate changes - (32)
----- -----
Cash and cash equivalents at end of the year 5,839 5,183
----- -----
Comprised of:
Cash and cash equivalents 5,839 5,183
----- -----
Total 5,839 5,183
===== =====
Notes to the Financial Statements
1. Principal activity
The principal activity of the Company is that of an investment trust company
within the meaning of sub-sections 1158 and 1159 of the Corporation Tax Act
2010.
2. Accounting policies
The principal accounting policies adopted by the Company are set out below.
(a) Basis of preparation
The Company's financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by the European
Union and as applied in accordance with the provisions of the Companies Act
2006.
As a result of the Cash Exit Proposals to be put to shareholders, the Directors
have resolved to prepare the financial statements under the liquidation basis.
The application of the liquidation basis results in the Company's assets and
liabilities being stated at their net realisable or settlement values.
Accordingly, adjustments to the value of listed investments have been applied
in order to reflect the estimated disposal costs. Other expected costs of
liquidation have been provided for.
Insofar as the Statement of Recommended Practice ("SORP") for investment trust
companies and venture capital trusts, issued by the Association of Investment
Companies ("AIC"), revised in January 2009, is compatible with IFRS, the
financial statements have been prepared in accordance with guidance set out in
the SORP.
A number of new standards, amendments to standards and interpretations are
effective for annual periods beginning after 1 January 2013, and have not been
applied in preparing these financial statements. None of these are expected to
have a significant effect on the measurement of the amounts recognised in the
financial statements of the Company. However, IFRS 9 "Financial Instruments"
issued in November 2009 will change the classification of financial assets, but
is not expected to have an impact on the measurement basis of the financial
assets since the majority of the Company's financial assets are measured at
fair value through profit or loss.
IFRS 9 (2009) deals with the classification and measurement of financial assets
and its requirements represent a significant change from the existing
requirements of IAS 39 in respect of financial assets. The standard contains
two primary measurement categories for financial assets: at amortised cost and
fair value. A financial asset would be measured at amortised cost if it is held
within a business model whose objective is to hold assets in order to collect
contractual cash flows, and the asset's contractual terms give rise on specific
dates to cash flows that are solely payments of principal and interest on the
principal outstanding. All other financial assets would be measured at fair
value. The standard eliminates the existing IAS 39 categories of "held to
maturity", "available for sale" and "loans and receivables".
The standard is effective for annual periods beginning on or after
1 January 2015 and it is not expected that the current fair value measurement
basis applied will be impacted. Earlier application is permitted. The Company
does not plan to early adopt this standard.
IFRS 10 Consolidated Financial Statements (effective 1 January 2014)
establishes a single control model that applies to all entities including
special purpose entities. IFRS 11 Joint Arrangements (effective 1 January 2014)
removes the option to account for jointly controlled entities using
proportionate consolidation. IFRS 12 Disclosure of Involvement with Other
Entities (effective 1 January 2014) now requires additional disclosures that
relate to an entity's interests in subsidiaries, joint arrangements, associates
and structured entities. IFRS 10, 11 and 12 are not relevant for the Company as
it does not prepare consolidated financial statements and holds no interests in
joint arrangements.
IFRS 13 Fair Value measurement (effective 1 January 2013) establishes a single
source of guidance under IFRS for all fair value measurements. It does not
change when an entity is required to use fair value, but rather provides
guidance on how to measure fair value under IFRS when fair value is required or
permitted.
The Company has assessed the impact that this standard will have on the
financial position and performance and concluded it is unlikely to result in
changes to the fair value measurement techniques currently in place.
(b) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company and in
accordance with guidance issued by the AIC, supplementary information which
analyses the Statement of Comprehensive Income between items of a revenue and a
capital nature has been presented alongside the Statement of Comprehensive
Income. In accordance with the Company's Articles of Association, net capital
returns may not be distributed by way of a dividend.
(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single
segment of business, being investment business.
(d) Income
Dividends receivable on equity shares are treated as revenue for the year on an
ex-dividend basis. Where no ex-dividend date is available dividends receivable
on or before the year end are treated as revenue for the year. Provision is
made for any dividends not expected to be received. Special dividends are
treated as a capital receipt or revenue receipt depending on the facts or
circumstances of each particular case.
Interest income is accounted for on an accruals basis.
Option premium income, if any, is recognised as revenue and included in the
revenue column of the Statement of Comprehensive Income unless the option has
been written for the maintenance and enhancement of the Company's investment
portfolio and represents an incidental part of a larger capital transaction, in
which case any premium arising is allocated to the capital column of the
Statement of Comprehensive Income.
(e) Expenses
All expenses, including finance costs, are accounted for on an accruals basis.
Expenses have been treated as revenue except as follows:
- expenses which are incidental to the acquisition or sale of an investment are
included within the cost or netted from the sales proceeds of the investment.
- expenses are treated as capital where a connection with the maintenance or
enhancement of the value of the investments can be demonstrated.
- performance fees, if any, are paid out of capital.
To satisfy the requirements of the liquidation basis of financial statement
preparation, estimates for costs of liquidation and in relation to the
realisation of the Company's assets have been made.
(f) Taxation
Deferred tax is recognised in respect of all temporary differences that have
originated but not reversed at the balance sheet date, where transactions or
events that result in an obligation to pay more tax in the future or right to
pay less tax in the future have occurred at the balance sheet date. This is
subject to deferred tax assets only being recognised if it is considered more
likely than not that there will be suitable profits from which the future
reversal of the temporary differences can be deducted. Deferred tax assets and
liabilities are measured at the rates applicable to the legal jurisdictions in
which they arise.
Provision for the doubtful recovery of withholding tax and estimates for taxes
associated with the realisation of the Company's investments have been made
under the liquidation basis.
(g) Investments held at fair value through profit or loss
The Company's investments are classified as held at fair value through profit
or loss in accordance with IAS 39 - 'Financial Instruments: Recognition and
Measurement' and are managed and evaluated on a fair value basis in accordance
with its investment strategy.
All investments are designated upon initial recognition as held at fair value
through profit or loss. Purchases of investments are recognised on a trade date
basis. The sales of assets are recognised at the trade date of the disposal.
Proceeds are measured at fair value, which is regarded as the proceeds of sale
less any transaction costs.
The fair value of the financial instruments is based on their quoted bid price
at the balance sheet date, without deduction for the estimated future selling
costs. Unquoted investments are valued by the Directors at fair value using
International Private Equity and Venture Capital Guidelines based on
recommendations by the BlackRock Pricing Committee. This policy applies to all
current and non-current asset investments held by the Company.
In preparing the financial statements on the liquidation basis, an adjustment
to the value of the investments for estimated disposal costs has been made.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Statement of
Comprehensive Income as "Gains or losses on investments held at fair value
through profit or loss". Also included within this heading are transaction
costs in relation to the purchase or sale of investments.
(h) Other receivables and payables
Other receivables and other payables do not carry any interest and are short
term in nature, and are accordingly stated at their nominal value.
(i) Foreign currency translation
The Company's financial statements are presented in sterling which is the
currency of the primary economic environment in which it operates. Transactions
involving foreign currencies are converted at the rate ruling at the date of
the transaction. Foreign currency monetary assets and liabilities are
translated into sterling at the rate ruling on the balance sheet date. Foreign
exchange differences arising on translation are recognised in the Statement of
Comprehensive Income as a revenue or capital item depending on the income or
expense they relate to.
(j) Dividends payable
Under IFRS, final dividends, if any, are only recognised as a liability after
they have been approved by shareholders. Special dividends and/or interim
dividends are recognised when paid to shareholders. They are also debited
directly to reserves.
(k) Cash and cash equivalents
Cash comprises cash in hand and demand deposits. Cash equivalents are short
term, highly liquid investments that are readily convertible to known amounts
of cash and that are subject to an insignificant risk of changes in value.
(l) Bank borrowings
Finance charges relating to the Company's overdraft facility are accounted for
on an accruals basis in the Statement of Comprehensive Income.
3. Income
2013 2012
£'000 £'000
Investment income:
Overseas listed dividends 2,027 1,525
Fixed interest 3 4
UK listed dividends 286 409
Scrip dividends 101 90
----- -----
2,417 2,028
------ -----
Other income:
Deposit interest 8 7
----- -----
8 7
----- -----
Total 2,425 2,035
===== =====
4. Investment management and performance fees
2013 2012
£'000 £'000
Investment management fee 1,094 922
===== ====
The investment management fee is levied quarterly, based on the gross assets on
the last day of each quarter, and is charged wholly to the revenue column of
the Statement of Comprehensive Income.
There was no performance fee accrued at 31 October 2013 (2012: nil).
5. Other expenses
2013 2012
£'000 £'000
Custody fee 19 21
Auditor's remuneration:
- audit services 23 21
- other non-audit services* 6 6
Directors' emoluments 88 80
Registrar's fee 35 34
Other administrative costs 157 193
---- ----
328 355
==== ====
The Company's ongoing charges, calculated as a percentage of
average net assets and using operating expenses and taxation,
excluding finance costs. 1.4% 1.5%
==== ====
* Other non-audit services relate to the review of the half yearly financial
statements.
Liquidation costs
2013 2012
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Liquidation costs 418 - 418 - - -
---- ---- ----- ---- ---- ----
418 - 418 - - -
==== ==== ===== ==== ==== ====
Further to the Cash Exit Proposals and the decision to prepare the Financial
Statements on a liquidation basis, the above are best estimates of the expenses
that may necessarily be incurred on liquidation.
6. Dividends
The Directors have declared an interim dividend of 0.225p per ordinary share
(2012: final dividend of 0.15p per share). The dividend will be paid on
24 January 2014, to shareholders on the Company's register on 27 December 2013.
The total dividend proposed in respect of the year ended 31 October 2013 meets
the requirements of section 1158 of the Corporation Tax Act 2010 and section
833 of the Companies Act 2006.
2013 2012
£'000 £'000
Dividend payable on equity shares:
Interim dividend of 0.225p* per ordinary share
(2012: final dividend of 0.15p per share) 529 353
--- ----
529 353
--- ----
* Based on 234,988,568 ordinary shares in issue on 13 December 2013.
7. Return and net asset value per ordinary share
Revenue and capital returns per share are shown below and have been calculated
using the following:
2013 2012
Net revenue return attributable to ordinary shareholders
(£'000) 339 614
Net capital return/(loss) attributable to ordinary
shareholders (£'000) 23,007 (5,022)
------ ------
Total return/(loss) attributable to ordinary shareholders
(£'000) 23,346 (4,408)
====== ======
Equity shareholders' funds (£'000) 106,907 83,904
------- ------
The weighted average number of ordinary shares in issue
during each year on which the return per ordinary
share was calculated was: 234,973,978 234,930,940
The actual number of ordinary shares in issue at the end
of the year on which the net asset value was
calculated was: 234,985,619 234,968,732
The number of ordinary shares in issue at the end of the
year on which the diluted net asset value was
calculated was: 234,985,619 234,968,732
Actual number of subscription shares in issue at the year
end 45,614,192 45,631,079
Undiluted
Revenue return per share 0.14p 0.26p
Capital return/(loss) per share 9.79p (2.14p)
------ ------
Total return/(loss) per share 9.93p (1.88p)
====== ======
Net asset value per share 45.50p 35.71p
====== ======
To the extent that the Company's NAV is in excess of the exercise price, the
subscription shares are considered to be dilutive. The diluted net asset value
per share is calculated by adjusting equity shareholders' funds for
consideration receivable on the exercise of 45,614,192 subscription shares, at
exercise price of 59.00p, and dividing by the total number of shares that would
have been in issue as at 31 October 2013 had all the subscription shares been
exercised. There was no dilution for the year ended 31 October 2013.
8. Called up share capital
Total
Ordinary Subscription Treasury shares Nominal
shares shares shares in value
(Nominal) (Nominal) (Nominal) issue £'000
Allotted, called up and
fully paid share capital
comprised:
Ordinary shares of 5p
each:
At 1 November 2012 234,968,732 - 11,900,000 246,868,732 12,343
Cancellation of shares
held in treasury - - (11,900,000) (11,900,000) (595)
----------- ---------- ---------- ----------- ------
234,968,732 - - 234,968,732 11,748
Subscription shares of
1p each:
At 1 November 2012 - 45,631,079 - 45,631,079 456
Conversion of
subscription shares into
ordinary shares 16,887 (16,887) - - 1
----------- ---------- -------- ----------- ------
At 31 October 2013 234,985,619 45,614,192 - 280,599,811 12,205
=========== ========== ======== =========== ======
During the year the Company issued 16,887 ordinary shares following the
conversion of 16,887 subscription shares. Since the year end and up to the date
of this report, the Company has issued a further 2,949 ordinary shares
following the conversion of 2,949 subscription shares. The number of ordinary
shares in issue at the date of this report is 234,988,568. There are also
45,611,243 subscription shares in issue. The subscription shares were issued as
a bonus issue to ordinary shareholders on 15 July 2009, on the basis of one
subscription share for every five ordinary shares.
The ordinary shares (including new ordinary shares issued as a result of the
exercise of subscription share rights prior to the relevant record date) carry
the right to receive any dividends and have one voting right per ordinary
share. There are no restrictions on the voting rights of the ordinary shares or
on transfer of the shares.
The subscription shares do not carry the right to receive any dividends and do
not have any voting rights other than at class meetings. There are no
restrictions on the transfer of the subscription shares.
During the year all the shares held in treasury were cancelled.
9. Contingent liabilities
There were no contingent liabilities at 31 October 2013 (2012: nil).
10. Publication of non-statutory accounts
The financial information contained in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006. The Annual Report and
Financial Statements for the year ended 31 October 2013 will be filed with the
Registrar of Companies shortly.
The figures set out above have been reported upon by the Auditor, whose report
for the year ended 31 October 2013 contains no qualification or statement under
section 498(2) or (3) of the Companies Act 2006.
The comparative figures are extracts from the audited financial statements of
BlackRock New Energy Investment Trust plc for the year ended 31 October 2012,
which have been filed with the Registrar of Companies. The report of the
Auditor on those financial statements contained no qualification or statement
under section 498 of the Companies Act.
11. Annual Report
Copies of the Annual Report will be published shortly and will be available
from the registered office, c/o The Company Secretary, BlackRock New Energy
Investment Trust plc, 12 Throgmorton Avenue, London EC2N 2DL.
12. Annual General Meeting
The Annual General Meeting of the Company will be held at the offices of
BlackRock Investment Management (UK) Limited, 12 Throgmorton Avenue, London
EC2N 2DL on Thursday, 6 February 2014 at 12.00 noon.
ENDS
The Annual Report will also be available on the BlackRock Investment Management
website at www.blackrock.co.uk/brne. Neither the contents of the Investment
Manager's website nor the contents of any website accessible from hyperlinks on
the Investment Manager's website (or any other website) is incorporated into,
or forms part of, this announcement.
For further information please contact:
Simon White, Managing Director,
Investment Company Division - 020 7743 5284
Robin Batchelor, Fund Manager - 020 7743 2618
Poppy Allonby, Fund Manager - 020 7743 2369
BlackRock Investment Management (UK) Ltd
Henrietta Guthrie, Lansons Communications - 020 7294 3612
12 Throgmorton Avenue
London
EC2N 2DL
13 December 2013