TIDMIIT
RNS Number : 3106V
Independent Investment Trust PLC
09 August 2022
The Independent Investment Trust PLC
------------------------------------
Interim Financial Report for the six months ended 31 May 2022
-------------------------------------------------------------
Legal Entity Identifier: 213800IYHGJTZJ3MO642
Regulated Information Classification: Half Yearly Financial
Report.
The following information is disclosed in accordance with DTR
4.2 of the UKLA Listing Rules (half-yearly financial reports).
OBJECTIVE AND POLICY
The Company's objective is to provide good absolute returns over
long periods by investing the great majority of its assets in UK
and international quoted securities and, if appropriate, index
futures. The portfolio is constructed without reference to the
composition of any stockmarket index. Although its investment
policy allows gearing, including the use of derivatives, the
Company is not permitted to employ gearing whilst it continues to
be a small registered UK Alternative Investment Fund Manager
(AIFM). When appropriate, the directors will sanction a relatively
concentrated portfolio structure and, depending on its AIFM status,
relatively high levels of gearing.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the Company, which have not changed
since the date of the Company's Annual Report and Financial
Statements for the year to 30 November 2021, are financial risk,
investment strategy risk, regulatory risk, custody risk,
operational risk, discount risk, economic, social and governance
(ESG) risk, political risk and resource risk. An explanation of
these risks and how they are being managed or mitigated is set out
on pages 11 to 12 of that report, which is available on the
Company's website: independentinvestmenttrust.co.uk. The Company's
policy is designed to allow the Company an unusually high degree of
freedom to exploit the directors' judgement. To the extent that the
directors' judgement is flawed, future results could be unusually
poor.
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
a) the condensed set of financial statements has been prepared
in accordance with FRS 104 'Interim Financial Reporting';
b) the Chairman's Statement includes a fair review of the
information required by Disclosure and Transparency Rule 4.2.7R
(being an indication of important events that have occurred during
the first six months of the financial year, their impact on the
condensed set of financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the year); and
c) the Interim Financial Report includes a fair review of the
information required by Disclosure and Transparency Rule 4.2.8R
(disclosure of related party transactions and changes therein).
On behalf of the board
Douglas McDougall Chairman
9 August 2022
FINANCIAL HIGHLIGHTS *
-------------------------- ----------------------------------
31 May 2022 30 November % change
2021
-------------------------- ----------- ----------- --------
Net asset value per share 528.3p 617.9p (14.5)
Share price 440.0p 544.0p (19.1)
FTSE All-Share Index 4,202.0 4,025.9 4.4
FTSE World Index 917.2 964.6 (4.9)
Discount # 16.7% 12.0%
Six months
to Year to
--------------------------
31 May 2022 30 November 2021
Total returns % %
-------------------------- ----------- ----------------
Net asset value per share
# (13.5) 14.4
Share price # (18.0) 9.3
FTSE All-Share Index 6.2 17.4
FTSE World Index (3.8) 22.3
Six months to Six months
to
---------------------
31 May 2022 31 May 2021 % change
--------------------- ------------- ----------- --------
Revenue earnings per
share 6.09p 5.17p 17.8
Dividend per share 3.00p 3.00p 0.0
--------------------- ------------- ----------- --------
* For a definition of terms see Glossary of Terms and
Alternative Performance Measures at the end of this
announcements.
Source: Baillie Gifford/Refinitiv and relevant underlying data
providers. See disclaimer at the end of this announcement.
# Alternative performance measure, see Glossary of Terms and
Alternative Performance Measures at the end of this
announcement.
Past performance is not a guide to future performance.
Chairman's Statement
--------------------
The six month period ending 31 May 2022 saw our company produce
a net asset value total return of -13.5%. The total returns
notionally attributable to the FTSE All-Share Index and the FTSE
World Index were 6.2% and -3.8% respectively. Our net asset value
per share fell from 617.9p to 528.3p over the period, and the share
price from 544p to 440p, causing the discount to net asset value to
rise from 12.0% to 16.7%. The share price total return for the
period was -18.0%.
Earnings for the half year amounted to 6.09p (5.17p). The
buoyancy of our revenue account has continued, but the myriad
uncertainties clouding the outlook led us to declare an unchanged
interim dividend of 3p. It will be paid on 19 August with our
shares having gone ex dividend on 28 July. In the event of our
proposed merger with The Monks Investment Trust (see below), we
should pay a pre-liquidation interim dividend required in order to
maintain investment trust status.
During the period we were able to buy back 866,819 shares at an
average discount of 13.3%.
The economic agenda has been dominated over the period by the
deteriorating outlook for inflation and the consequent implications
for interest rates and economic activity. Having pinned their hopes
on the inflationary forces emerging last year being "transitory",
the world's central banks have been caught out as war in the
Ukraine has, through its effect on food and energy prices, provoked
a further acceleration in inflation. The monetary authorities have,
with varying degrees of conviction, accepted that their earlier
analysis was unduly sanguine and embarked upon a programme of
monetary tightening. It is too early to predict the scale and
duration of this programme, but it has already had a notable effect
on equity markets in general and on the share prices of companies
perceived as having strong growth prospects in particular. Such
companies are disproportionately represented in our portfolio and
we have suffered accordingly.
It was not a particularly active period for transacting and much
of the activity that did take place was aimed at improving the
overall liquidity of the portfolio. The two sector weightings most
affected by this were Technology and Leisure, both of which
underwent significant reductions. Our cash balances rose from 12.5%
at 30 November 2021 to 15.6% at 31 May 2022. They have since risen
further to 16.6%.
An unexceptional performance by our Business Services holdings
saw the sector emerge as our biggest exposure at the end of the
period: a position worth GBP53.8m at 30 November 2021 had fallen in
value to GBP45.9m by 31 May 2022 after net sales of GBP0.4m. All
four of our holdings traded well throughout the period, but only
Big Technologies saw its share price rise.
The combined impact of disappointing performance and disposals
saw the value of our Technology holdings fall from GBP70.3m at 30
November 2021 to GBP44.6m at 31 May 2022. The takeover of Blue
Prism and a reduction in the Herald holding accounted for GBP9m of
the fall. Alfa Financial Services, FDM and Seeing Machines all
produced encouraging trading results, but the recently acquired
Made Tech suffered from the need to extend the length of contracts
with a number of customers. The net asset value of Herald performed
creditably in the circumstances, but a widening of its discount led
to a bigger fall in its share price.
A resilient performance of our traditional Travel and Leisure
holdings mitigated the losses suffered in our computer games
companies. We made significant reductions in our computer games
companies, selling out of Frontier Developments on news of poor
trading, reducing Team 17 on grounds of valuation and reducing
tinyBuild on grounds of illiquidity. We also sold out of Loungers
on grounds of valuation and illiquidity. Our remaining traditional
holdings, Jet2 and On the Beach drew encouragement from very strong
holiday bookings for the summer of 2022. Overall, our Travel and
Leisure stake fell in value from GBP51.8m at 30 November 2021 to
GBP30.8m at 31 May 2022 after sales of GBP16.1m.
Our holdings in the Housing sector, one of our great long term
favourites, performed very poorly during the period despite
excellent trading conditions and strong earnings. A stake worth
GBP33.6m at 30 November 2021 had fallen in value to GBP30.8m at 31
May 2022 despite purchases amounting to GBP5.3m. Sector share
prices had begun to underperform in the second half of 2021 in
anticipation of rising interest rates. This underperformance
continued as the interest rate outlook deteriorated and was given
extra impetus by government action to hold the quoted companies
liable for the remediation of buildings with cladding defects for
which they had no legal or moral responsibility. The threat by the
government to obstruct planning consent for those defying its will
was enough to force leading companies into submission. Owing to the
strong financial condition of the sector, these liabilities are
manageable, as are any financial pressures resulting from a crash
in the housing market, should it happen. Sentiment,
however, will take time to recover. In the meantime we consider
our holdings to be astonishingly cheap.
Our retail holdings had a grim time as the scale of the
reversion of trade from online to offline was greater than expected
and the deteriorating interest rate outlook understandably affected
investors' confidence in the sector. Fever-Tree also suffered a big
share price fall as cost pressures overshadowed a strong sales
performance. The fall in the Ashtead share price can be attributed
entirely to investors' expectations of a serious deterioration in
trading at some point in the future. On the other hand, British
American Tobacco was, somewhat surprisingly, the best performing
stock in the portfolio as its defensive merits outweighed its poor
ESG credentials. We disposed of our two healthcare stocks during
the period: Medica on grounds of poor liquidity and Synairgen
following a disappointing drug trial.
Among our financial holdings, Polar Capital performed well and
the Direct Line dividend compensated for the fall in its share
price. Our two new holdings, IG Group and OSB Group both suffered
disappointing share price performances despite good trading
results.
We have today announced our proposal to merge our company with
the Monks Investment Trust. The directors have confidence in the
board and managers of Monks and have committed to accept stock in
respect their entire personal holdings in The Independent, which
amount to 24.3% of the Company's equity. This announcement can be
accessed on the Company's website:
independentinvestmenttrust.co.uk.
The principal risks facing the Company are set out on the inside
front cover of this report. We draw your attention, in particular,
to the unusually important role of the directors' judgement in the
success or failure of the Company's policy. We should also like to
remind shareholders, despite the decision by the Association of
Investment Companies to classify us as a UK trust, that we are free
to invest in quoted equities wherever they are listed.
Douglas McDougall
9 August 2022
List of Investments as at 31 May 2022 (unaudited)
-------------------------------------------------
Value Value
30 Nov Gains/ 31 May
2021 Net transactions (losses) 2022
Sector Name GBP'000 GBP'000 GBP'000 GBP'000 %
--------------------- ----------------------- --------- ----------------- ---------- --------- ------
Housing Bellway 12,472 - (3,128) 9,344 3.4
Persimmon 8,211 5,300 (2,631) 10,880 4.0
Redrow 12,956 - (2,356) 10,600 3.9
33,639 5,300 (8,115) 30,824 11.3
--------- ----------------- ---------- --------- ------
Industrials Ashtead Group 9,066 2,303 (3,063) 8,306 3.0
--------- ----------------- ---------- --------- ------
Retailing Moonpig Group 4,914 - (1,038) 3,876 1.4
Motorpoint 4,950 (304) (1,440) 3,206 1.2
Seraphine Group 2,379 - (1,891) 488 0.2
Vicorian Plumbing 7,020 - (3,704) 3,316 1.2
19,263 (304) (8,073) 10,886 4.0
--------- ----------------- ---------- --------- ------
Consumer Services Telecom Plus 8,163 - 1,413 9,576 3.5
========= ================= ========== ========= ======
Travel and Leisure Frontier Developments 4,913 (3,674) (1,239) - -
Jet2 9,758 - 1,887 11,645 4.2
Loungers 4,716 (4,825) 109 - -
On the Beach Group 4,659 - (23) 4,636 1.7
Team 17 Group 17,920 (2,416) (4,379) 11,125 4.1
tinyBuild 9,800 (5,197) (1,203) 3,400 1.2
--------- ----------------- ---------- --------- ------
51,766 (16,112) (4,848) 30,806 11.2
--------- ----------------- ---------- --------- ------
Business Services Big Technologies 13,530 (5,343) (57) 8,130 3.0
Bytes Technology
Group 27,650 (5,037) (3,973) 18,640 6.8
Midwich 12,600 - (800) 11,800 4.3
PageGroup - 9,983 (2,642) 7,341 2.7
--------- ----------------- ---------- --------- ------
53,780 (397) (7,472) 45,911 16.8
--------- ----------------- ---------- --------- ------
British American
Tobacco Tobacco 10,118 - 3,890 14,008 5.1
Alfa Financial
Technology and Software 4,900 - (525) 4,375 1.6
Telecommunications Blue Prism 1,364 (1,339) (25) - -
FDM Group 11,220 - (1,880) 9,340 3.4
Gamma Communications 11,886 - (3,486) 8,400 3.1
Herald Investment
Trust 26,180 (7,631) (4,437) 14,112 5.1
Made Tech Group 4,752 - (3,212) 1,540 0.5
Seeing Machines 10,025 - (3,162) 6,863 2.5
70,327 (8,970) (16,727) 44,630 16.2
--------- ----------------- ---------- --------- ------
Beverages Fever-Tree Drinks 5,180 - (2,118) 3,062 1.1
--------- ----------------- ---------- --------- ------
Direct Line Insurance
Insurance Group 13,520 - (655) 12,865 4.7
Polar Capital 5,939 - 826 6,765 2.5
--------- ----------------- ---------- --------- ------
19,459 - 171 19,630 7.2
--------- ----------------- ---------- --------- ------
Healthcare Medica Group 3,200 (3,194) (6) - -
Synairgen 1,214 (126) (1,088) - -
4,414 (3,320) (1,094) - -
Financials IG Group - 9,570 (984) 8,586 3.1
OSB Group - 5,639 (444) 5,195 1.9
--------- ----------------- ---------- --------- ------
- 15,209 (1,428) 13,781 5.0
--------- ----------------- ---------- --------- ------
Total Investments 285,175 (6,291) (47,464) 231,420 84.4
Net Liquid Assets 40,926 1,887 - 42,813 15.6
---------------------------------------------- --------- ----------------- ---------- --------- ------
Shareholders'
Funds 326,101 (4,404) (47,464) 274,233 100.0
---------------------------------------------- --------- ----------------- ---------- --------- ------
All holdings are in equities domiciled in the UK unless
otherwise stated.
Income statement (unaudited)
----------------------------
(Audited)
For the six months ended For the six months ended For the year ended
31 May 2022 31 May 2021 30 November 2021
---------------------- -------------------------------- ------------------------------ ----------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- ---------- ---------- --------- --------- -------- -------- -------- --------
(Losses)/gains on
investments (note 3) - (47,464) (47,464) - 45,855 45,855 - 36,492 36,492
Currency losses - - - - (20) (20) - (20) (20)
Income from
investments 3,561 - 3,561 3,156 _ 3,156 5,898 - 5,898
Other income 30 - 30 8 _ 8 19 - 19
Administrative
expenses (407) - (407) (394) _ (394) (798) - (798)
---------------------- -------- ---------- ---------- --------- --------- -------- -------- -------- --------
Net return on ordinary
activities before
taxation 3,184 (47,464) (44,280) 2,770 45,835 48,605 5,119 36,472 41,591
Tax on ordinary
activities - - - - - - - - -
---------------------- -------- ---------- ---------- --------- --------- -------- -------- -------- --------
Net return on ordinary
activities after
taxation 3,184 (47,464) (44,280) 2,770 45,835 48,605 5,119 36,472 41,591
---------------------- -------- ---------- ---------- --------- --------- -------- -------- -------- --------
Net return per
ordinary share (note
4) 6.09p (90.78p) (84.69p) 5.17p 85.64p 90.81p 9.61p 68.46p 78.07p
---------------------- -------- ---------- ---------- --------- --------- -------- -------- -------- --------
Note:
Dividends per share
paid and payable in
respect of the period
(note 5) 3.00p 3.00p 9.00p
---------------------- -------- ---------- ---------- --------- --------- -------- -------- -------- --------
The total column of this statement is the profit and loss
account of the Company. The supplementary revenue and capital
columns are prepared under guidance published by the Association of
Investment Companies.
All revenue and capital items in this statement derive from
continuing operations.
A Statement of Comprehensive Income is not required as the
Company does not have any other comprehensive income and the net
return on ordinary activities after taxation is both the profit and
comprehensive income for the period.
Balance sheet (unaudited)
-------------------------
(Audited)
At 31 May At 30 November
2022 2021
GBP'000 GBP'000
------------------------------------------------------ ----------- ---------------
Fixed assets
Investments held at fair value through profit or loss 231,420 285,175
------------------------------------------------------ ----------- ---------------
Current assets
Debtors 827 135
Cash and cash equivalents 42,051 40,878
------------------------------------------------------ ----------- ---------------
42,878 41,013
Creditors
Amounts falling due within one year (65) (87)
------------------------------------------------------ ----------- ---------------
Net current assets 42,813 40,926
------------------------------------------------------ ----------- ---------------
Total net assets 274,233 326,101
------------------------------------------------------ ----------- ---------------
Capital and reserves
Share capital 12,976 13,193
Share premium account 15,242 15,242
Special distributable reserve (1,961) 2,503
Capital redemption reserve 3,556 3,339
Capital reserve 237,430 284,894
Revenue reserve 6,990 6,930
------------------------------------------------------ ----------- ---------------
Shareholders' funds 274,233 326,101
------------------------------------------------------ ----------- ---------------
Net asset value per ordinary share (note 6) 528.3p 617.9p
------------------------------------------------------ ----------- ---------------
Ordinary shares in issue (note 7) 51,906,862 52,773,681
------------------------------------------------------ ----------- ---------------
Statement of changes in equity (unaudited)
==========================================
For the six months ended 31 May 2022
Special Capital
Share premium distributable redemption Capital Revenue Shareholders'
Share capital account reserve reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------------- ------------- ------------- ------------- ---------- -------------- --------------
Shareholders'
funds at 1
December 2021 13,193 15,242 2,503 3,339 284,894 6,930 326,101
Net return on
ordinary
activities
after
taxation - - - - (47,464) 3,184 (44,280)
Shares bought
back for
cancellation (217) - (4,464) 217 - - (4,464)
Dividends paid
(note 5) - - - - - (3,124) (3,124)
-------------- ------------- ------------- ------------- ------------- ---------- -------------- --------------
Shareholders'
funds at 31
May 2022 12,976 15,242 (1,961) 3,556 237,430 6,990 274,233
-------------- ------------- ------------- ------------- ------------- ---------- -------------- --------------
For the six months ended 31 May 2021
Special Capital
Share premium distributable redemption Capital Revenue Shareholders'
Share capital account reserve reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 1
December 2020 13,539 15,242 9,985 2,993 248,422 6,079 296,260
Net return on
ordinary
activities
after
taxation - - - - 45,835 2,770 48,605
Shares bought
back for
cancellation (228) - (4,807) 228 - - (4,807)
Dividends paid
(note 5) - - - - - (2,675) (2,675)
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 31
May 2021 13,311 15,242 5,178 3,221 294,257 6,174 337,383
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
* The Capital Reserve balance at 31 May 2022 includes investment
holding gains on fixed asset investments of GBP34,627,000 (31 May
2021 - gains of GBP122,409,000).
Notes to the condensed financial statements (unaudited)
=======================================================
1. The condensed financial statements for the six months to 31
May 2022 comprise the statements set out on pages 6 to 9 together
with the related notes on pages 10 and 11. They have been prepared
in accordance with FRS 104 'Interim Financial Reporting' and the
AIC's Statement of Recommended Practice issued in November 2014 and
updated in October 2019 with consequential amendments. They have
not been audited or reviewed by the Auditor pursuant to the
Auditing Practices Board Guidance on 'Review of Interim Financial
Information'. The financial statements for the six months to 31 May
2022 have been prepared on the basis of the same accounting
policies as set out in the Company's Annual Report and financial
statements at 30 November 2021. The Company has elected not to
present a Statement of Cash Flows for the current period as a
Statement of Changes in Equity has been provided and substantially
all of the Company's investments are highly liquid and are carried
at market value.
Fair value hierarchy
The fair value hierarchy used to analyse the basis on which the
fair values of financial instruments held at fair value through the
profit or loss account are measured is described below. Fair value
measurements are categorised on the basis of the lowest level input
that is significant to the fair value measurement.
Level 1 - using unadjusted quoted prices for identical
instruments in an active market;
Level 2 - using inputs, other than quoted prices included within
Level 1, that are directly or indirectly observable (based on
market data); and
Level 3 - using inputs that are unobservable (for which market
data is unavailable).
The Company's investments are financial instruments held at fair
value through the profit or loss accounts. At 31 May 2022, all of
the Company's investments were categorised as Level 1 within the
fair value hierarchy described above. At 30 November 2021, all of
the Company's investments were also classified as Level 1. For all
other financial assets and liabilities, carrying value approximates
to fair value. There have been no transfers between levels of the
fair value hierarchy during the period. The fair value of listed
investments is either the bid price or last traded price, depending
on the convention of the stock exchange on which the investment is
listed. Listed investments are categorised as Level 1 if they are
valued using unadjusted quoted prices for identical instruments in
an active market, as Level 2 if they do not meet all these criteria
but are, nonetheless, valued using market data and as Level 3 where
market data is unavailable.
Going concern
On 9 August 2022, the Board announced that it had agreed heads
of terms with The Monks Investment Trust PLC (Monks) and Monks'
manager Baillie Gifford & Co Limited, for a proposed Scheme of
reconstruction (the Scheme) under Section 110 of the Insolvency Act
1986 of The Independent Investment Trust plc (IIT or the Company)
and an associated transfer of assets to Monks. The Scheme has not
yet been approved by the shareholders of the Company or those of
Monks but does cast doubt on the Company's ability to continue as a
going concern. If the shareholders approve the Scheme the Company
will be liquidated and its assets split into three pools in respect
of (i) the interest of shareholders wishing to rollover their
shareholdings into Monks, (ii) cash exiting shareholders and (iii)
the liquidator's retention.
The financial statements do not include the adjustments that
would result should the Company be unable to continue as a going
concern. In arriving at the decision on the basis of preparation,
the Board has considered the financial position of the Company, its
liquidity position as well as the uncertainty surrounding the
outcome of the Scheme and concluded that, as the Scheme is
contingent on shareholder approval and the Company is considered
solvent in all other regards, there is no irrevocable path to
liquidation and thus going concern remains the most appropriate
basis for preparation.
2. The financial information contained within this Interim
Financial Report does not constitute statutory accounts as defined
in sections 434 to 436 of the Companies Act 2006. The financial
information for the year ended 30 November 2021 has been extracted
from the statutory accounts which have been filed with the
Registrar of Companies. The Auditor's Report on those accounts was
not qualified, did not include a reference to any matters to which
the Auditor drew attention by way of emphasis without qualifying
its report, and did not contain statements under sections 498(2) or
(3) of the Companies Act 2006.
3. Gains on investments
(Audited)
Six months to Six months to Year to
31 May 2022 31 May 2021 30 November 2021
GBP'000 GBP'000 GBP'000
------------------------------------------------ =============== =============== =================
Realized gains/ on sales 13,792 18,729 35,892
Movement on investment holding gains and losses (61,256) 27,126 600
================================================ =============== =============== =================
(47,464) 45,855 36,492
================================================ =============== =============== =================
4. Net return per ordinary share
(Audited)
Six months to Six months to Year to
31 May 2022 31 May 2021 30 November 2021
GBP'000 GBP'000 GBP'000
----------------------------------------------------- =============== =============== =================
Revenue return on ordinary activities after taxation 3,184 2,770 5,119
Capital return on ordinary activities after taxation (47,464) 45,835 36,472
===================================================== =============== =============== =================
Total net return (44,280) 48,605 41,591
===================================================== =============== =============== =================
The returns per share are based on the above returns and on
52,284,141 (31 May 2021 - 53,523,911; 30 November 2021 -
53,274,238) shares being the weighted average number of shares in
issue during each period.
There was no dilution of returns during any of the financial
periods under review.
5. Dividends
(Audited)
Six months to Six months to Year to
31 May 2022 31 May 2021 30 November 2021
GBP'000 GBP'000 GBP'000
----------------------------------------------------------------- --------------- --------------- -----------------
Amounts recognized as distributions in the period:
Previous year's final dividend of 5.00p paid 8 April 2022 (2021 -
5.00p) 2,603 2,675 2,674
Previous year's special of 1.00p paid 8 April 2022 (2021 - nil) 521 - -
Interim (2021 - 3.00p) - - 1,594
----------------------------------------------------------------- --------------- --------------- -----------------
3,124 2,675 4,268
----------------------------------------------------------------- --------------- --------------- -----------------
Amounts paid and payable in respect of the period:
Interim of 3.00p payable 19 August 2022 (2021 - 3.00p) 1,557 1,597 1,594
Final/second Interim of 5.00p paid 8 April 2022 (2021 - 5.00p) - _ 2,638
Special Dividend of 1.00p paid 8 April 2022 (2021 - nil) - - 528
1,557 1,597 4,760
----------------------------------------------------------------- --------------- --------------- -----------------
The Interim dividend in respect of the six months to 31 May 2022
was declared after the period end and has therefore not been
included as a liability in the balance sheet. It is payable on 19
August 2022 to shareholders on the register at the close of
business on 29 July 2022. The ex-dividend date is 28 July 2022.
6. Net asset value per ordinary share
The net asset value per ordinary share and the net asset value
attributable to the ordinary shareholders at the period end
calculated in accordance with the articles of association and UK
GAAP were as follows:
As at 31 May 2022 As at 30 November 2021
Pence GBP'000 Pence GBP'000
---------------- -------- --------- ---------- ============
Ordinary shares 528.3 274,233 617.9 326,101
================ ======== ========= ========== ============
The net asset value per share is based on net assets as shown
above and on 51,906,862 shares (30 November 2021 - 52,773,681),
being the number of shares in issue at the period end.
There are no dilutive or potentially dilutive shares in
issue.
7. During the period the Company bought back for cancellation
866,819 ordinary shares of 25p each at a cost of GBP4,464,000. At
31 May 2022, the Company had authority to buy back 7,780,838
ordinary shares and to allot new shares up to an aggregate nominal
amount of GBP1,945,000. In the period from 1 June 2022 to 7 August
2022 the Company has bought back no ordinary shares of 25p
each.
8. Transaction costs incurred on the purchase and sale of the
investments are added to the purchase cost or deducted from the
sale proceeds, as appropriate. During the period, transaction costs
on purchases amounted to GBP237,000 (31 May 2021 - GBP170,000; 30
November 2021 - GBP208,000) and transaction costs on sales amounted
to GBP77,000 (31 May 2021 - GBP95,000; 30 November 2021 -
GBP183,000).
9. Related Party Transactions
There have been no transactions with related parties during the
first six months of the current financial year that have materially
affected the financial position or the performance of the Company
during that period and there have been no changes in the related
party transactions described in the last Annual Report and
financial statements that could have had such an effect on the
Company during that period.
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of the data contained herewith nor as to the results to be obtained
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(whether direct or indirect) resulting therefrom. No Provider has
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herein changes or subsequently becomes inaccurate.
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under statute or otherwise, in respect of any loss or damage
suffered by you as a result of or in connection with any opinions,
recommendations, forecasts, judgements, or any other conclusions,
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whether or not based on the content, information or materials
contained herein.
FTSE Index data
London Stock exchange Group plc and its group undertakings
(collectively, the 'LSE Group') (c) LSE Group 2022. FTSE Russell is
a trading name of certain of the LSE Group companies. 'FTSE(R)'
'Russell(R)', 'FTSE Russell R' is/are a trade mark(s) of the
relevant LSE Group Group companies and is/are used by any other LSE
Group company under licence. All rights in the FTSE Russell indexes
or data vest in the relevant LSE Group company which owns the index
or the data. Neither LSE Group nor its licensors accept any
liability for any errors or omissions in the indices or data and no
party may rely on any indexes or data contained in this
communication. No further distribution of Data from the :SE Group
is permitted without the relevant LSE Group company's express
written consent. The LSE Group does not promote, sponsor or endorse
the content of this communication.
Automatic Exchange of Information
In order to fulfil its obligations under UK Tax Legislation
relating to the automatic exchange of information, the Company is
required to collect and report certain information about certain
shareholders.
The legislation will require investment trust companies to
provide personal information to HMRC on certain investors who
purchase shares in investment trusts. Accordingly, the Company must
provide information annually to the local tax authority on the tax
residencies of a number of non-UK based certificated shareholders
and corporate entities.
Shareholders, excluding those whose shares are held in CREST,
who come on to the share register will be sent a certification form
for the purposes of collecting this information.
For further information, please see HMRC's Quick Guide:
Automatic Exchange of Information - information for account holders
gov.uk/government/publications/exchange-of-information-account-holders
.
RISK WARNINGS
Past performance is not a guide to future performance.
The Independent Investment Trust PLC is a listed UK company. As
a result, the value of its shares and any income from those shares
can fall as well as rise and investors may not get back the amount
invested.
As Independent invests in overseas securities, changes in the
rates of exchange may also cause the value of investments (and any
income it may pay) to go down or up.
Market values for securities which have become difficult to
trade may not be readily available, and there can be no assurance
the value assigned to such securities will accurately reflect the
price the Company might receive upon their sale.
None of the views expressed in this document should be construed
as advice to buy or sell a particular investment. The Independent
Investment Trust PLC, as a listed company, is subject to the
requirements of the Listing Rules of the Financial Conduct
Authority (FCA). It is a small registered UK Alternative Investment
Fund Manager (AIFM) under the Alternative Investment Fund Managers
Regulations 2013. Its employees are not registered with the FCA as
authorized persons. If you are in any doubt about the Company's
regulatory status, you should consult your stockbroker or financial
adviser.
Glossary of Terms and Alternative Performance Measures (APM)
Total Assets
The total value of all assets held less all liabilities (other
than liabilities in the form of borrowings).
Net Asset Value
Also described as shareholders' funds. Net Asset Value (NAV) is
the value of all assets held less all liabilities. The NAV per
share is calculated by dividing this amount by the number of
ordinary shares in issue.
(Discount)/Premium (APM)
As stockmarkets and share prices vary, an investment trust's
share price is rarely the same as its NAV. When the share price is
lower than the NAV per share it is said to be trading at a
discount. The size of the discount is calculated by subtracting the
share price from the NAV per share and is usually expressed as a
percentage of the NAV per share. If the share price is higher than
the NAV per share, it is said to be trading at a premium.
31 May 2022 30 November 2021
------------------------------ --------- ------------ -----------------
Net asset value per share (a) 528.3p 617.9p
Share price (b) 440.0p 544.0p
------------------------------ --------- ------------ -----------------
(b - a)
(Discount)/premium expressed ÷
as a percentage (a) (16.7%) (12.0%)
------------------------------ --------- ------------ -----------------
Net Liquid Assets
Net liquid assets comprise current assets less current
liabilities.
Total Return (APM)
The total return is the return to shareholders after reinvesting
the dividend on the date that the share price goes ex-dividend.
31 May 31 May 30 November 30 November
2022 2022 2021 2021
NAV Share Price NAV Share Price
-------------------------------------------------- -------------- ------------ ---------------------- ------------
Closing NAV per share/share
price (a) 528.3p 440.0p 617.9p 544.0p
Dividend adjustment factor* (b) 1.01175 1.01382 1.01321 1.01506
Adjusted closing NAV per share/share (c) = (a
price x b) 534.5p 446.1p 626.1p 552.2p
Opening NAV per share/share
price (d) 617.9p 544.0p 547.1p 505.0p
------------------------------------ ------------ -------------- ------------ ---------------------- ------------
Total Return expressed as (c - d)
a percentage ÷ (d) (13.5%) (18.0%) 14.4% 9.3%
------------------------------------ ------------ -------------- ------------ ---------------------- ------------
*The dividend adjustment factor is calculated on the assumption
that the dividends of 6.00p paid by the Company in the six months
to 31 May 2022 (year to 30 November 2021 - 8.00p) were reinvested
into shares of the Company at the cum income NAV per share/share
price, as appropriate, at the ex-dividend date.
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other
public company, an investment trust can borrow money to invest in
additional investments for its portfolio. The effect of the
borrowing on the shareholders' assets is called 'gearing'. If the
Company's assets grow, the shareholders' assets grow
proportionately more because the debt remains the same. But if the
value of the Company's assets falls, the situation is reversed.
Gearing can therefore enhance performance in rising markets but can
adversely impact performance in falling markets. The level of
gearing can be adjusted through the use of derivatives which affect
the sensitivity of the value of the portfolio to changes in the
level of markets.
Available Cash
Cash and cash equivalents as adjusted for investment and share
buy-back transactions awaiting settlement.
The printed version of the Interim Financial Report will be sent
to shareholders and will be available on
independentinvestmenttrust.co.uk on or around 23 August 2022. None
of the views expressed in this document should be construed as
advice to buy or sell a particular investment.
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.
- ends -
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END
IR EVLFBLVLZBBF
(END) Dow Jones Newswires
August 09, 2022 02:10 ET (06:10 GMT)
Grafico Azioni Independent Investment (LSE:IIT)
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