TIDMENI
RNS Number : 3212P
Edinburgh New Income Trust plc
14 July 2010
News Release
14 July 2010
EDINBURGH NEW INCOME TRUST PLC
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 MAY 2010
Edinburgh New Income Trust's investment objective is to provide ordinary
shareholders with an attractive level of income, together with the potential for
capital and income growth and its zero dividend preference shareholders with a
pre-determined capital entitlement on 31 May 2011.
For further information, please contact:
James Laing, Deputy Head of UK and European Equities,
Tel: 0131 528 4000
Aberdeen Asset Managers Limited
Charles Luke, Senior Investment Manager,
Tel: 0207 463 6000
Aberdeen Asset Managers Limited
Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as rise.
Investors may not get back the amount they originally invested.
EDINBURGH NEW INCOME TRUST PLC
1. CHAIRMAN'S STATEMENT
After the turmoil of the previous year when net assets values fell
substantially, I am pleased to report a significant recovery in the last 12
months. This is discussed in more detail in the Manager's Review on the
following pages. The Company's net asset value per Ordinary share rose by 42.8%
on a total return basis. The share price rose by 17.8% to 51.0p having been as
high as 61.0p during the course of the year.
The rise in the net asset value is partly attributable to the Company's capital
gearing through the ZDP shares, which means that any rise in the portfolio
affects Ordinary shareholders disproportionately, and partly because the equity
portfolio performed more strongly than the market as a whole, returning 30.1% in
total return terms against 22.9% for the FTSE All-Share Index.
Dividends
The Board announces a fourth interim dividend of 2.1p, which will be paid on 20
August 2010 to shareholders on the register on 23 July 2010. This brings the
total dividend for the year to 6.0p, the same as last year.
Looking forward, after the cuts in corporate payouts of last year, dividend
prospects for the UK equity market have generally improved. Although BP has
suspended its dividend payments, the diversified nature of our income stream and
our accumulated revenue reserves have cushioned the impact. Subject to there
being no further unforeseen developments, the Board aims to maintain the current
dividend of 6.0p per share, by drawing on revenue reserves, should this be
necessary, for the final year of the Company.
Gearing
The Board's decision to suspend the equity gearing limit last July when shares
were at much lower levels proved timely. Holdings of cash were cut and
additional monies were invested in equities. Cash and fixed interest bonds now
total GBP10.9 million out of the total assets of GBP31.2 million, down from
GBP13.4 million out of GBP27.8 million a year ago. These cash and bond positions
should be seen in the context of the GBP21.5 million required to meet the
redemption of the ZDP shares on 31 May 2011.
Gearing at 31 May 2010 was 184.3%, which compares with 163.2% a year earlier.
Gearing will clearly be reduced as the final redemption date of the ZDPs
approaches.
Outlook
We have seen a modest recovery in economic growth, though doubts are likely to
remain about its sustainability for some time yet. The budget deficits of the
West are at record highs and robust action is required to repair government
balance sheets and unwind quantitative easing. Stockmarkets continue to react
adversely to any negative developments.
While there remain considerable uncertainties about the immediate outlook, the
Board and the Manager are of the view that, even after the rally of the last 12
months, equity market valuations are still at reasonable levels.
At the stock level, with the obvious exception of more recent problems at BP, we
are satisfied with the progress being made in the companies in which we are
invested and meetings with management are generally becoming more positive. The
portfolio continues to be focused on good quality companies with strong
competitive positions and robust balance sheets.
Winding-up of the Company
The Board is conscious of the winding-up provisions within the Company's
Articles and the approaching redemption date of the ZDPs on 31 May 2011. As
this date approaches, the Directors intend to consider options for those
shareholders who may wish to continue their investment beyond that date. The
Directors believe that the Company has adequate resources to continue in
operational existence until 31 May 2011. However, as there is less than a year
to the winding-up date provided in the Articles, the accounts have been prepared
on a break-up basis. More information is provided within the Directors' Report.
Annual General Meeting
The Company's Annual General Meeting takes place in Edinburgh on 6 October 2010,
and I look forward to seeing as many of you there as possible.
David Ritchie
Chairman
13 July 2010
2. MANAGER'S REVIEW
The year to the end of May 2010, while not as challenging from an investment
perspective, has perhaps brought more clearly into focus the longer-term
headwinds the global economy faces. While the banks have for the moment been
stabilised, with massive public and shareholder support, the markets' attention
has now shifted firmly to governments' balance sheets which have been stretched
by the twin requirements to bail out the banks and support fragile economies.
As a result of these events we have probably witnessed one of the largest
transfers ever of private sector debt on to the public balance sheet. We will
live with the consequences of this crisis for many years to come and traditional
responses of cutting interest rates and increasing government spending are no
longer viable solutions. There is fundamentally just too much outstanding debt
with too many future liabilities.
Portfolio Review
During the year under review, total assets less current liabilities (excluding
ZDPs) of the Company rose from GBP27.8 million as at 31 May 2009 to GBP31.2
million at 31 May 2010, a rise of 12.6%. The total return, which includes the
receipt of dividends, from Edinburgh New Income's portfolio was 18.9% and
compares with a total return from the FTSE All-Share Index of 22.9%. The
difference is the result of the fund holding a significant proportion of its
assets in cash and bonds. At the equity portfolio level the performance was
pleasing, up 30.1%, which is 7.2% ahead of the FTSE All-Share Index.
As we wrote last year, our response to the extreme economic events has been to
review all our stocks under the most testing of scenarios and to seek to improve
the quality of the companies which we hold within the portfolio. We have
continued to focus our efforts this year on building positions and introducing
new names which have strong market positions, robust balance sheets and
diversified geographic exposures allowing them to prosper in an uncertain
economic environment.
Firstly, our sectoral underweight to both oil producers and banks helped
significantly as both recovered less than the market - the former due to the
lack of production growth in the larger oil companies, while the banks, which
are heavily exposed to western economies, still have significant structural and
regulatory issues to overcome. Secondly, there were a number of specific
companies which performed strongly over the period including XP Power, Fenner
and GKN which all benefited from evidence that capital spending would resume now
that the worst of the economic slowdown is behind us.
As we approached the end of this financial year it appeared that corporate
managements were becoming confident enough in the outlook to start buying other
businesses. This has also been assisted by the return of liquidity to equity,
banking and fixed interests markets which enabled businesses with sound plans
and balance sheets to raise the required capital. While the Prudential offer for
AIA was rejected by its own shareholders, Weir Group, Centrica and Rolls Royce
have all acquired new businesses or assets.
One of our core holdings Arriva, the bus and train operator, benefited from this
trend when it was subject to an approach by Deutsche Bahn. The shares have
subsequently rallied very strongly and the board have recommended the cash offer
of GBP7.75 per share. From our perspective as business investors it is
disappointing that other shareholders and the Arriva board are focused on
short-term value realisation rather than the long-term opportunity which the
deregulation of the European transport market offers.
Portfolio Activity
The year began with the Company supporting rights issues in Rio Tinto, Land
Securities and GKN, all of which we underwrote for attractive fees. Rio Tinto's
$15.2bn rights issue allowed the company to secure its balance sheet after the
badly timed Alcan acquisition left the group's balance sheet over geared as
commodity prices temporarily slumped during the financial crisis. Since the
rights issue Rio Tinto has successfully restructured its balance sheet and
announced a potential JV with BHP Billiton which may lead to a combined
Australian iron ore company. Land Securities has, since the rights issue,
refocused its activities on a high quality shopping centre and London office
portfolio. Additionally it has a number of attractive office developments which
are likely to become available just as supply of prime office space is at a very
low level. GKN's rights issue has enabled it to continue to restructure the
automotive division and build on its leading position as an independent supplier
of composite aircraft structures.
As we mentioned earlier our underweight in larger oil companies benefited the
Company. With regard to BP and the recent events in the Gulf of Mexico, although
we own shares in the company, our exposure has been relatively limited. We have
not taken any action to date as we are keen not to crystallise a capital loss
while we believe the shares to be undervalued. However, given the uncertainty
over future dividend payments we are not keen to commit fresh capital to the
company. Our starting position in both BP and Shell was based on analysis that
indicated to us that while the oil industry is a fundamentally attractive area
to invest in, given the structurally increasing demand for energy and the
declining availability of easily accessible energy supplies, actually buying
shares in major oil companies may not generate the returns we seek. This has
been highlighted by a number of events over the last 5 years which has driven
major developed oil market companies to move into more difficult operating and
geopolitical environments in order to grow or hold production stable.
Accordingly we have identified the oil equipment and service providers as a more
attractive route into the sector. Over the year, based on this research we
introduced both Wood Group and Weir Group into the portfolio. Wood Group is a
leading global provider of oil service engineering and production support. Weir
Group provides pumps and valves globally to the oil and mining industries and
has a large amount of recurring revenue from its installed base of pumps and
valves.
Our focus on companies with strong market positions, balance sheets and
diversified geographic exposures led us to introduce both Pearson and Tesco
during the course of the year. Pearson is an international media company
providing business people with information and children and adults with
educational materials. In a world increasingly driven by increased skills and
knowledge as the key differentiator between success and failure the outlook for
this market appears positive. Tesco offers an interesting growth opportunity,
through increasing international and non-food sales and also services. In
addition, over the course of the year, we increased our holdings in businesses
we felt had been oversold by the market including Aviva, Whitbread, Provident
Financial, Centrica, Vodafone and Close Brothers.
These purchases were funded by reductions in our positions in McBride,
Millennium & Copthorne, Daily Mail & General Trust and XP Power. We also sold
our entire position in Tomkins following a recovery in the share price and our
reassessment of the company's long-term competitive position. Additionally
Ladbrokes was exited following a number of meetings with management where we
identified issues with the capital structure and business performance which
subsequently led to a dividend cut after we had completed the sale of our
position.
Outlook
On a fundamental basis, we continue to believe the path to sustainable economic
growth remains challenging and the outlook uncertain. Record budget deficits
need to be repaired, savings ratios enhanced to historic levels, inflation
restrained, interest rates normalised, banking re-regulated and quantitative
easing unwound. Over the past couple of months it seems as though the market is
slowly becoming more cognisant of these hindrances. However, we are pleased
that on an operational basis our holdings are broadly performing well and our
meetings with management have generally been positive. Although by their
nature, exogenous events are unpredictable, the portfolio retains exposure to
good-quality companies, with strong competitive positions and robust balance
sheets and we continue to believe that these attributes are the best way to
ensure good absolute and relative performance.
Aberdeen Asset Managers Limited
13 July 2010
3. PERFORMANCE TABLES
+----------------------------------------------+---------------+---------------+--------+
| | 31 May | 31 May | % |
| | 2010 | 2009 | change |
+----------------------------------------------+---------------+---------------+--------+
| Total assets less current liabilities¹ | GBP31,243,000 | GBP27,759,000 | 12.6 |
+----------------------------------------------+---------------+---------------+--------+
| Total equity Shareholders' funds | GBP10,947,000 | GBP8,612,000 | 27.1 |
+----------------------------------------------+---------------+---------------+--------+
| | | | |
+----------------------------------------------+---------------+---------------+--------+
| Ordinary shares | | | |
+----------------------------------------------+---------------+---------------+--------+
| Net asset value (including undistributed | 53.4 | 42.0p | 27.1 |
| revenue for the period) | | | |
+----------------------------------------------+---------------+---------------+--------+
| Share price | 51.0 | 43.3p | 17.8 |
+----------------------------------------------+---------------+---------------+--------+
| Premium/(discount) | (4.5%) | 3.1% | |
+----------------------------------------------+---------------+---------------+--------+
| Total dividends for period | 6.0p | 6.0p | - |
+----------------------------------------------+---------------+---------------+--------+
| | | | |
+----------------------------------------------+---------------+---------------+--------+
| ZDP shares | | | |
+----------------------------------------------+---------------+---------------+--------+
| Net asset value | 133.8p | 126.2p | 6.0 |
+----------------------------------------------+---------------+---------------+--------+
| Share price | 133.3p | 127.8p | 4.3 |
+----------------------------------------------+---------------+---------------+--------+
| Capital cover (gross assets ² /final | 1.41 | 1.24 | |
| repayment entitlement of ZDPs) | | | |
+----------------------------------------------+---------------+---------------+--------+
| | | | |
+----------------------------------------------+---------------+---------------+--------+
| Gearing | | | |
+----------------------------------------------+---------------+---------------+--------+
| Equity gearing ratio (equities/ordinary | 184.3% | 163.2% | |
| shareholders' funds) | | | |
+----------------------------------------------+---------------+---------------+--------+
| Potential gearing (total assets/ordinary | 285.4% | 322.3% | |
| shareholders' funds) | | | |
+----------------------------------------------+---------------+---------------+--------+
| Capital gearing (ratio of borrowings (ZDPs) | 65.0% | 69.0% | |
| to gross assets) | | | |
+----------------------------------------------+---------------+---------------+--------+
| | | | |
+----------------------------------------------+---------------+---------------+--------+
| Expense ratioC (as % of average total | 1.2% | 0.9% | |
| assets less current liabilities) | | | |
+----------------------------------------------+---------------+---------------+--------+
¹ Excluding accrual for ZDP shares
² Excluding revenue reserves, as wholly attributable to the Ordinary
Shareholders.
C 2009 would be 1.2% if VAT recoverable on investment management fees had been
excluded.
Performance (total return) A
+-------------------------------------+---------+----------+---------+
| | 1 year | 3 year | 5 year |
| | return | return | return |
+-------------------------------------+---------+----------+---------+
| | % | % | % |
+-------------------------------------+---------+----------+---------+
| Ordinary share price | +32.5 | -49.3 | -23.6% |
+-------------------------------------+---------+----------+---------+
| Net asset value per Ordinary share | +42.8 | -53.5 | -21.4% |
+-------------------------------------+---------+----------+---------+
| A Represents capital return plus | | | |
| dividends reinvested | | | |
+-------------------------------------+---------+----------+---------+
4. DIRECTORS' REPORT
Business Review
Principal Activity and Status
The Company was incorporated as a public limited company on 22 April 2005 and
was listed on the London Stock Exchange on 31 May 2005.
The Company's registration number is SC283705.
The business of the Company is that of an investment trust and the Directors do
not envisage any change in this activity for the year to 31 May 2011.
The Company is registered as a public limited company and is an investment
company as defined by Section 833 of the Companies Act 2006. The Company has
been approved by HM Revenue & Customs as an investment trust for the purposes of
Section 842 of the Income and Corporation Taxes Act 1988 (ICTA) for the year
ended 31 May 2009. The Directors are of the opinion that the Company has
conducted its affairs for the year ended 31 May 2010 so as to be able to
continue to obtain approval as an investment trust under Section 1158 of the
Corporation Tax Act 2010 (formerly Section 842 of ICTA) for that year, although
approval for the year would be subject to review were there to be any enquiry
under the Corporate Tax Self Assessment regime.
The Company has conducted its affairs so as to satisfy the requirements as a
qualifying security for Individual Savings Accounts. The Directors intend that
the Company will continue to conduct its affairs in this manner in the future.
Investment Objective and Policy
The investment objective is to provide the holders of Ordinary shares with an
attractive level of income, together with the potential for both income and
capital growth, and to provide holders of the ZDP shares with a pre-determined
return of capital. Details of the Company's policy and investment strategy is
provided in the Corporate Summary section.
Performance
An outline of the performance, market background, investment activity and
portfolio strategy during the period under review, as well as the investment
outlook, is provided in the Chairman's Statement and Manager's Review.
Dividends
The Company has declared dividends totalling 6.0p per Ordinary share in respect
of the year to 31 May 2010 (2009 - 6.0p).
Risks and Uncertainties
The Board has adopted a matrix of the key risks that affect its business. The
principal risks are as follows:
· Stockmarket risk: The Company is exposed to the effect of variations in share
prices due to the nature of its business. A fall in the value of its portfolio
will have an adverse effect on shareholders' funds, which will be exacerbated by
the gearing effect of the ZDP shares. It is not the aim of the Board to
eliminate entirely the risk of capital loss, rather it is its aim to seek
capital growth so that the gearing effect will multiply the gains for Ordinary
shareholders. However, the Board has to have regard to the damage which will
result from a significant fall in share prices and closely monitors the level of
gearing. An aim is to ensure that the future capital entitlement of the ZDP
shares can always be met.
· Capital structure risk: The Company's capital structure and its accounting
policies mean that the capital accrual on the ZDP shares and 50% of the
management fee are charged to the capital account rather than the revenue
account. While this enables a higher dividend payment than would otherwise be
the case, it means that total assets have to rise by approximately 4.2% in the
next twelve months in order to maintain the level of Ordinary shareholders'
funds in existence at the period end.
· Income/dividend risk: The investment objective of the Company, to provide
Ordinary shareholders with an attractive level of income, means that the Manager
has to achieve an above average dividend yield on the investments in the
portfolio. A consequence is that the performance of the equity portfolio may not
always match that of the stockmarket as a whole, with a consequential impact on
shareholder returns. The Board's aim is to maximise returns consistent with
achieving its dividend requirements.
· Regulatory risk: The Company operates in a complex regulatory environment and
faces a number of regulatory risks. A breach of Section 1158 of the Corporation
Tax Act 2010 could result in the Company being subject to capital gains tax on
portfolio investments. Breaches of other regulations such as the UKLA listing
rules, could lead to a number of detrimental outcomes and reputational damage.
Breaches of controls by service providers such as the Manager could also lead to
reputational damage or loss.
· Operational risk - this is covered within the investment process on page 15
and the internal controls section within the Statement of Corporate Governance
on page 24.
Further details on other risks relating to the Company's investment activities,
including market, price, liquidity and foreign currency risks are provided in
note 17 to the accounts.
The Directors have adopted a robust framework of control which is designed to
monitor all key risks facing the Company, and to provide a monitoring system to
enable the Directors to mitigate these risks as far as possible. An analysis of
the Company's system of internal controls is set out in the Statement of
Corporate Governance.
Monitoring Performance - Key Performance Indicators
The following key performance indicators (KPIs) have been identified by the
Board for determining the progress of the Company:
+-----------------------+--------+
| | Year |
| | to |
| | 31 May |
| | 2010 |
+-----------------------+--------+
| Dividend per Ordinary | 6.0p |
| share | |
+-----------------------+--------+
| Total NAV return per | 42.8% |
| Ordinary share | |
+-----------------------+--------+
| ZDP cover | 1.41 |
+-----------------------+--------+
| Discount | 4.5% |
+-----------------------+--------+
| Total expense ratio | 1.2% |
+-----------------------+--------+
At each Board meeting, the Directors consider a number of performance measures,
including the above KPIs to assess the Company's success in achieving its
objectives. Although the Company has no defined benchmark the portfolio is
largely drawn from the large, mid and small cap components of the FTSE All-Share
Index. The total return from the FTSE All-Share Index was 22.9% for the year
under review.
Resources
The Company has no employees. The management of the Company has been delegated
to Aberdeen Asset Managers Limited. Details of the Management Agreement are
provided on page 3.
Environmental Policy
As an investment trust, the Company has no direct social or environmental
responsibilities. Its focus is on ensuring that its portfolio is properly
managed and invested. The Company has, however, adopted an environmental policy,
details of which are set out in the Corporate Governance Report.
Going Concern
The Company is a split capital investment trust with a planned life due to
expire on 31 May 2011. The ZDP shareholders are entitled to receive a final
capital entitlement of 141.85p per share, which is equivalent to an annual
redemption yield of 6.0% based on its issue price of 100p. Ordinary shareholders
are entitled to the remaining assets of the Company following repayment of the
capital entitlement to ZDP shareholders.
In accordance with the Articles of Association, the Directors are obliged to
convene a general meeting ('GM') on 31 May 2011 at which a special resolution
shall be proposed to wind up the Company voluntarily. The Directors may be
released from this obligation only by special resolution passed not earlier than
30 November 2010 and with the class consent of the ZDP shareholders. The
Articles of Association also contain provisions designed to facilitate a
reconstruction of the Company provided that its terms would still entitle
shareholders to elect to receive cash, estimated by the Directors to be not less
than their entitlements on a winding up in accordance with the Articles of
Association. The Directors intend, as the winding up date approaches, to
consider ways in which this might be achieved so that those shareholders who
wish to continue their investment beyond that date, may do so and, in
particular, whether a rollover vehicle might be offered. Therefore, the present
expectation of the Directors is that the shareholders may be offered a
continuation of their investment, although the Company itself is unlikely to
continue in the same operational structure beyond 31 May 2011.
Meanwhile the Company will continue to be managed in the same way as at present
with a view to paying an unchanged dividend and maximising the returns to all
shareholders.
The Directors believe that the Company has adequate resources to continue in
operational existence until 31 May 2011. In arriving at this conclusion, the
Directors have considered the fixed life of the Company and the final capital
entitlement of the ZDP shareholders. As at 31 May 2010 the total assets of the
Company were GBP31.2 million and the portfolio had adequate liquidity to cover
the GBP21.5 million required to redeem the ZDP shares in full. Taking into
account the wind-up provisions in the Articles, the accounts have been prepared
on a break-up basis. The estimated maximum break-up costs include liquidation
costs of GBP150,000 and portfolio realisation costs of GBP41,000 which will be
charged in the Company's 2011 accounts.
13 July 2010
5. STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report & Accounts and the
financial statements, in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with UK Accounting Standards.
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 that period.
In preparing these financial statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· make judgments and estimates that are reasonable and prudent; and
· state whether applicable UK Accounting Standards have been followed, subject
to any material departures disclosed and explained in the financial statements.
The Directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that its financial statements comply with the
Companies Act 2006. They have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Company and to
prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report, Directors' Remuneration Report and Corporate
Governance Statement that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate
and financial information included on the Company's website. Legislation in the
UK governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
The Directors confirm that to the best of their knowledge that:
· the financial statements, prepared in accordance with the applicable
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
· the Directors' 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 the Company faces.
For Edinburgh New Income Trust plc
David Ritchie
Chairman
13 July 2010
INCOME STATEMENT (audited)
+-----------------------------------------------+-------+---------+---------+---------+
| | | Year ended 31 May |
| | | 2010 |
+-----------------------------------------------+-------+-----------------------------+
| | | Revenue | Capital | Total |
+-----------------------------------------------+-------+---------+---------+---------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------------------+-------+---------+---------+---------+
| Gains/(losses) on investments held at fair | 8 | - | 3,817 | 3,817 |
| value through profit or loss | | | | |
+-----------------------------------------------+-------+---------+---------+---------+
| Income | 2 | 1,264 | - | 1,264 |
+-----------------------------------------------+-------+---------+---------+---------+
| Investment management fee | 3 | (100) | (100) | (200) |
+-----------------------------------------------+-------+---------+---------+---------+
| VAT recoverable on investment management fee | 19 | - | - | - |
+-----------------------------------------------+-------+---------+---------+---------+
| Administration expenses | 4 | (166) | - | (166) |
+-----------------------------------------------+-------+---------+---------+---------+
| | | _______ | _______ | _______ |
+-----------------------------------------------+-------+---------+---------+---------+
| Net return/(loss) on ordinary activities | | 998 | 3,717 | 4,715 |
| before finance costs and taxation | | | | |
+-----------------------------------------------+-------+---------+---------+---------+
| | | | | |
+-----------------------------------------------+-------+---------+---------+---------+
| Finance costs of ZDP Shareholders | | - | (1,149) | (1,149) |
+-----------------------------------------------+-------+---------+---------+---------+
| | | _______ | _______ | _______ |
+-----------------------------------------------+-------+---------+---------+---------+
| Net return/(loss) on ordinary activities | 5 | 998 | 2,568 | 3,566 |
| before and after taxation | | | | |
+-----------------------------------------------+-------+---------+---------+---------+
| | | _______ | _______ | _______ |
+-----------------------------------------------+-------+---------+---------+---------+
| Return/(loss) per Ordinary share (pence) | 7 | 4.86 | 12.52 | 17.38 |
+-----------------------------------------------+-------+---------+---------+---------+
| | | _______ | _______ | _______ |
+-----------------------------------------------+-------+---------+---------+---------+
+----------+-----------------------------------------------+-------+---------+----------+----------+--+
| | | | Year ended 31 May 2009 |
+----------+-----------------------------------------------+-------+----------------------------------+
| | | Revenue | Capital | Total | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| | Notes | GBP'000 | GBP'000 | GBP'000 | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Losses on investments held at fair value through profit | 8 | - | (11,431) | (11,431) | |
| or loss | | | | | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Income | 2 | 1,539 | - | 1,539 | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Investment management fee | 3 | (96) | (96) | (192) | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| VAT recoverable on investment management fee | 19 | 54 | 54 | 108 | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Administration expenses | 4 | (170) | - | (170) | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| | | _______ | _______ | _______ | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Net return/(loss) on ordinary activities before finance | | 1,327 | (11,473) | (10,146) | |
| costs and taxation | | | | | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| | | | | | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Finance costs of ZDP Shareholders | | - | (1,084) | (1,084) | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| | | _______ | _______ | _______ | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Net return/(loss) on ordinary activities before and | | 1,327 | (12,557) | (11,230) | |
| after taxation | | | | | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| | | _______ | _______ | _______ | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| Return/(loss) per Ordinary share (pence) | 7 | 6.47 | (61.20) | (54.73) | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| | | _______ | _______ | _______ | |
+----------------------------------------------------------+-------+---------+----------+----------+--+
| | | | | | | |
+----------+-----------------------------------------------+-------+---------+----------+----------+--+
The total column of this statement represents the profit and loss account of the
Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all
gains and losses are recognised in the Income Statement.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the year.
The accompanying notes are an integral part of the financial statements.
BALANCE SHEET (audited)
+----------------------------------+-------+--------------+--------------+
| | | As at | As at |
+----------------------------------+-------+--------------+--------------+
| | | 31 May | 31 May |
| | | 2010 | 2009 |
+----------------------------------+-------+--------------+--------------+
| | Notes | GBP'000 | GBP'000 |
+----------------------------------+-------+--------------+--------------+
| Non-current assets | | | |
+----------------------------------+-------+--------------+--------------+
| Investments at fair value | 8 | - | 19,314 |
| through profit or loss | | | |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| Current assets | | | |
+----------------------------------+-------+--------------+--------------+
| Investments at fair value | 8 | 27,918 | - |
| through profit or loss | | | |
+----------------------------------+-------+--------------+--------------+
| Debtors and prepayments | 9 | 330 | 379 |
+----------------------------------+-------+--------------+--------------+
| AAA Money Market funds | | - | 1,250 |
+----------------------------------+-------+--------------+--------------+
| Cash and short term deposits | | 3,157 | 6,909 |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
| | | 31,405 | 8,538 |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| Creditors: amounts falling due | 10 | (20,458) | (93) |
| within one year | | | |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
| Net current assets | | 10,947 | 8,445 |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
| Total assets less current | | 10,947 | 27,759 |
| liabilities | | | |
+----------------------------------+-------+--------------+--------------+
| | | | |
+----------------------------------+-------+--------------+--------------+
| Creditors: amounts falling due | 11 | - | (19,147) |
| in more than one year | | | |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
| Net assets | | 10,947 | 8,612 |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
| Share capital and reserves | | | |
+----------------------------------+-------+--------------+--------------+
| Called-up share capital | 12 | 205 | 205 |
+----------------------------------+-------+--------------+--------------+
| Special reserve | | 20,035 | 20,035 |
+----------------------------------+-------+--------------+--------------+
| Capital reserve | 13 | (10,227) | (12,795) |
+----------------------------------+-------+--------------+--------------+
| Revenue reserve | | 934 | 1,167 |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
| Equity Shareholders' Funds | | 10,947 | 8,612 |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
| Net asset value per Ordinary | 14 | 53.4 | 42.0 |
| share (pence) | | | |
+----------------------------------+-------+--------------+--------------+
| | | ____________ | ____________ |
+----------------------------------+-------+--------------+--------------+
The accompanying notes are an integral part of the financial statements.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (audited)
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| For the year ended 31 | | | | | | |
| May 2010 | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | Share | Special | Capital | Revenue | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | capital | reserve | reserve | reserve | Total |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Balance at 31 May | | 205 | 20,035 | (12,795) | 1,167 | 8,612 |
| 2009 | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Return on ordinary | | - | - | 2,568 | 998 | 3,566 |
| activities after | | | | | | |
| taxation | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Dividends paid | 6 | - | - | - | (1,231) | (1,231) |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | _________ | _________ | _________ | _________ | _________ |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Balance at 31 May | | 205 | 20,035 | (10,227) | 934 | 10,947 |
| 2010 | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | _________ | _________ | _________ | _________ | _________ |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| For the year ended 31 | | | | | | |
| May 2009 | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | Share | Special | Capital | Revenue | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | capital | reserve | reserve | reserve | Total |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Balance at 31 May | | 205 | 20,035 | (238) | 1,318 | 21,320 |
| 2008 | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Return/(loss) on | | - | - | (12,557) | 1,327 | (11,230) |
| ordinary activities | | | | | | |
| after taxation | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Dividends paid | 6 | - | - | - | (1,478) | (1,478) |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | _________ | _________ | _________ | _________ | _________ |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| Balance at 31 May | | 205 | 20,035 | (12,795) | 1,167 | 8,612 |
| 2009 | | | | | | |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
| | | _________ | _________ | _________ | _________ | _________ |
+-----------------------+-------+-----------+-----------+-----------+-----------+-----------+
The revenue reserve represents the amount of the Company's reserves
distributable by way of dividend.
The accompanying notes are an integral part of the financial statements.
CASHFLOW STATEMENT (audited)
+---------------------------------+-------+----------+----------+----------+----------+
| | | Year ended | Year ended |
+---------------------------------+-------+---------------------+---------------------+
| | | 31 May 2010 | 31 May 2009 |
+---------------------------------+-------+---------------------+---------------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+-------+----------+----------+----------+----------+
| Net cash inflow from operating | 15 | | 1,014 | | 1,088 |
| activities | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Taxation | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Net taxation paid | | - | | | (1) |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Financial investment | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Purchases of investments | | (8,748) | | (7,827) | |
+---------------------------------+-------+----------+----------+----------+----------+
| Sales of investments | | 3,963 | | 12,100 | |
+---------------------------------+-------+----------+----------+----------+----------+
| | | ________ | | ________ | |
+---------------------------------+-------+----------+----------+----------+----------+
| Net cash (outflow)/inflow from | | | (4,785) | | 4,273 |
| financial investment | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Equity dividends paid | | | (1,231) | | (1,478) |
+---------------------------------+-------+----------+----------+----------+----------+
| | | ________ | | ________ |
+-----------------------------------------+----------+----------+----------+----------+
| Net cash (outflow)/inflow before use | | (5,002) | | 3,882 |
| of liquid resources and financing | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Net cash inflow from management | | | 1,250 | | 1,965 |
| of liquid resources | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | ________ | | ________ |
+---------------------------------+-------+----------+----------+----------+----------+
| (Decrease)/increase in cash | | | (3,752) | | 5,847 |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | ________ | | ________ |
+---------------------------------+-------+----------+----------+----------+----------+
| Reconciliation of net cash flow | | | | | |
| to movements in net debt | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| (Decrease)/increase in cash as | | | (3,752) | | 5,847 |
| above | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Net change in liquid resources | | | (1,250) | | (1,965) |
+---------------------------------+-------+----------+----------+----------+----------+
| Net change in debt | | | (1,149) | | (1,079) |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | ________ | | ________ |
+---------------------------------+-------+----------+----------+----------+----------+
| Movement in net debt in the | | | (6,151) | | 2,803 |
| year | | | | | |
+---------------------------------+-------+----------+----------+----------+----------+
| Net debt as at 1 June | | | (10,988) | | (13,791) |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | ________ | | ________ |
+---------------------------------+-------+----------+----------+----------+----------+
| Net debt as at 31 May | 16 | | (17,139) | | (10,988) |
+---------------------------------+-------+----------+----------+----------+----------+
| | | | ________ | | ________ |
+---------------------------------+-------+----------+----------+----------+----------+
The accompanying notes are an integral part of the financial statements.
Notes:
+----+--+----------------------------------------------------------+
| 1. | Accounting policies |
+----+-------------------------------------------------------------+
| | A summary of the principal accounting policies, all of |
| | which have been consistently applied throughout the year |
| | and the preceding year is set out below: |
+----+-------------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | (a)| Basis of preparation |
+----+--+----------------------------------------------------------+
| | | The financial statements have been prepared in |
| | | accordance with the applicable UK Accounting Standards |
| | | and with the Statement of Recommended Practice |
| | | 'Financial Statements of Investment Trust Companies and |
| | | Venture Capital Trusts' (issued in January 2009). They |
| | | have also been prepared on the assumption that approval |
| | | as an investment trust will be granted for the year |
| | | ended 31 May 2010. As described in the Chairman's |
| | | statement, the financial statements have been prepared |
| | | on a break up basis. Accordingly the investments have |
| | | been included as current assets and the Zero Dividend |
| | | Preference shares as current liabilities since there is |
| | | less than 1 year to redemption. No other adjustments |
| | | exist as a result of the decision to prepare on a break |
| | | up basis. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | (b)| Valuation of investments |
+----+--+----------------------------------------------------------+
| | | Investments have been designated upon initial |
| | | recognition as fair value through the profit or loss. |
| | | Initial fair value equals consideration receivable or |
| | | payable less transaction costs. Investments are |
| | | recognised and de-recognised at trade date where a |
| | | purchase or sale is under a contract whose terms require |
| | | delivery within the time frame established by the market |
| | | concerned, and are initially measured as fair value. For |
| | | listed investments, this is deemed to be bid market |
| | | prices or closing prices for SETS (London Stock |
| | | Exchange's electronic trading service) stocks sourced |
| | | from The London Stock Exchange. Gains and losses arising |
| | | from changes in fair value are included in net profit or |
| | | loss for the period as a capital item in the Income |
| | | Statement and are ultimately recognised in the capital |
| | | reserve. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | (c)| Income |
+----+--+----------------------------------------------------------+
| | | Income from equity investments, including taxes deducted |
| | | at source, is included as a revenue item in the Income |
| | | Statement by reference to the date on which the |
| | | investment is quoted ex dividend. Special dividends are |
| | | credited to capital or revenue in the Income Statement, |
| | | according to the circumstances, on the date on which the |
| | | investment is quoted ex dividend. Short term deposit |
| | | interest is dealt with on an accruals basis. Other |
| | | interest entitlements and underwriting commission are |
| | | also included as a revenue item in the Income Statement. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | (d)| Expenses |
+----+--+----------------------------------------------------------+
| | | All expenses are accounted for on an accruals basis. |
| | | Expenses are charged through the revenue column of the |
| | | Income Statement except as follows: |
+----+--+----------------------------------------------------------+
| | | - transaction costs incurred on the purchase and |
| | | disposal of investments are recognised as a capital item |
| | | in the Income Statement. |
+----+--+----------------------------------------------------------+
| | | - the Company charges 50% of investment management fees |
| | | to capital, in accordance with the Board's expected long |
| | | term return in the form of capital gains and income |
| | | respectively from the investment portfolio of the |
| | | Company. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | (e)| Taxation |
+----+--+----------------------------------------------------------+
| | | Deferred tax |
+----+--+----------------------------------------------------------+
| | | Deferred taxation is recognised in respect of all timing |
| | | differences that have originated but not reversed at the |
| | | Balance Sheet date where transactions or events that |
| | | result in an obligation to pay more or a right to pay |
| | | less tax in future have occurred at the Balance Sheet |
| | | date measured on an undiscounted basis and based on |
| | | enacted tax rates. 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 underlying timing |
| | | differences can be deducted. Timing differences are |
| | | differences arising between the Company's taxable |
| | | profits and its results as stated in the Financial |
| | | Statements which are capable of reversal in one or more |
| | | subsequent periods. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | | Due to the Company's status as an investment trust |
| | | company, and the intention to continue meeting the |
| | | conditions required to obtain approval in the |
| | | foreseeable future, the Company has not provided for |
| | | deferred tax on any capital gains and losses arising on |
| | | the revaluation or disposal of investments. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | (f)| Capital reserve |
+----+--+----------------------------------------------------------+
| | | Gains or losses on disposal of investments and changes |
| | | in fair values of investments are transferred to the |
| | | capital reserve. The capital element of the management |
| | | fee and relevant finance costs are charged to this |
| | | reserve. Any associated tax relief is also credited to |
| | | this reserve. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | | The Ordinary share capital on the Balance Sheet relates |
| | | to the number of shares in issue and in treasury. Only |
| | | when the shares are cancelled, either from treasury or |
| | | directly, is a transfer made to the capital redemption |
| | | reserve. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
| | (g)| Zero Dividend Preference ('ZDP') shares |
+----+--+----------------------------------------------------------+
| | | ZDP shares are treated as a liability. The increase in |
| | | the annual compound growth entitlement of the ZDP shares |
| | | is accrued daily under the effective yield basis as a |
| | | finance cost through the capital column of the Income |
| | | Statement and allocated to the capital reserve. |
+----+--+----------------------------------------------------------+
| | (h)| Cash and cash equivalents |
| | | Cash comprises cash in hand and at bank and short-term |
| | | deposits. Cash equivalents are highly liquid investments |
| | | that are readily convertible to known amounts of cash |
| | | and are subject to an insignificant risk of changes in |
| | | value. |
| | | |
+----+--+----------------------------------------------------------+
| | (i)| Dividends payable |
| | | Dividends are recognised on the date on which they are |
| | | paid. |
+----+--+----------------------------------------------------------+
| | | |
+----+--+----------------------------------------------------------+
+----+------------------------------------------+-----------+-----------+
| | | 2010 | 2009 |
+----+------------------------------------------+-----------+-----------+
| 2. | Income | GBP'000 | GBP'000 |
+----+------------------------------------------+-----------+-----------+
| | Income from investments | | |
+----+------------------------------------------+-----------+-----------+
| | UK dividend income | 834 | 1,148 |
+----+------------------------------------------+-----------+-----------+
| | Overseas dividends | 25 | 20 |
+----+------------------------------------------+-----------+-----------+
| | PID (Property Income Distributions) | 18 | 13 |
| | dividends | | |
+----+------------------------------------------+-----------+-----------+
| | Stock dividend | 14 | 26 |
+----+------------------------------------------+-----------+-----------+
| | Fixed interest | 337 | 62 |
+----+------------------------------------------+-----------+-----------+
| | | _________ | _________ |
+----+------------------------------------------+-----------+-----------+
| | | 1,228 | 1,269 |
+----+------------------------------------------+-----------+-----------+
| | | _________ | _________ |
+----+------------------------------------------+-----------+-----------+
| | Other income | | |
+----+------------------------------------------+-----------+-----------+
| | AAA rated money market funds interest | 3 | 57 |
+----+------------------------------------------+-----------+-----------+
| | Deposit interest | 13 | 68 |
+----+------------------------------------------+-----------+-----------+
| | Certificates of Deposit interest | 9 | 117 |
+----+------------------------------------------+-----------+-----------+
| | Treasury Bill interest | 2 | 14 |
+----+------------------------------------------+-----------+-----------+
| | Underwriting commission | 9 | 14 |
+----+------------------------------------------+-----------+-----------+
| | | _________ | _________ |
+----+------------------------------------------+-----------+-----------+
| | | 36 | 270 |
+----+------------------------------------------+-----------+-----------+
| | | _________ | _________ |
+----+------------------------------------------+-----------+-----------+
| | Total income | 1,264 | 1,539 |
+----+------------------------------------------+-----------+-----------+
| | | _________ | _________ |
+----+------------------------------------------+-----------+-----------+
+----+------------------+---------+---------+---------+---------+---------+---------+
| | | 2010 | 2009 |
+----+------------------+-----------------------------+-----------------------------+
| | | Revenue | Capital | Total | Revenue | Capital | Total |
+----+------------------+---------+---------+---------+---------+---------+---------+
| 3. | Investment | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | management fee | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Investment | 100 | 100 | 200 | 96 | 96 | 192 |
| | management fee | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | | _______ | _______ | _______ | _______ | _______ | _______ |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | |
+----+------------------------------------------------------------------------------+
| | The fees disclosed above were paid to Aberdeen Asset |
| | Managers Limited ('AAM'), a wholly owned subsidiary of |
| | Aberdeen Asset Management PLC. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| | The management fee is charged at 0.65% of gross assets |
| | less the value of any investment funds managed by AAM. 50% |
| | of the management fee is charged to capital. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| | The balance due to AAM at the year end was GBP51,000 (2009 |
| | - GBP46,000). |
+----+------------------+---------+---------+---------+---------+---------+---------+
+----+------------------+---------+---------+---------+---------+---------+---------+
| | | 2010 | 2009 |
+----+------------------+-----------------------------+-----------------------------+
| | | Revenue | Capital | Total | Revenue | Capital | Total |
+----+------------------+---------+---------+---------+---------+---------+---------+
| 4. | Administration | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | expenses | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Directors' fees | 55 | - | 55 | 55 | - | 55 |
| | (excluding | | | | | | |
| | irrecoverable | | | | | | |
| | VAT) | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Auditor's | | | | | | |
| | remuneration | | | | | | |
| | (excluding | | | | | | |
| | irrecoverable | | | | | | |
| | VAT): | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | - fees payable | 19 | - | 19 | 18 | - | 18 |
| | to the Company's | | | | | | |
| | auditors for the | | | | | | |
| | audit of the | | | | | | |
| | annual accounts | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Contributions to | 12 | - | 12 | 14 | - | 14 |
| | Investment Trust | | | | | | |
| | Initiative | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Custody fees and | 9 | - | 9 | 10 | - | 10 |
| | bank charges | | | | | | |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Registrars fees | 18 | - | 18 | 20 | - | 20 |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Printing | 9 | - | 9 | 13 | - | 13 |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | Other | 44 | - | 44 | 40 | - | 40 |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | | _______ | _______ | _______ | _______ | _______ | _______ |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | | 166 | - | 166 | 170 | - | 170 |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | | _______ | _______ | _______ | _______ | _______ | _______ |
+----+------------------+---------+---------+---------+---------+---------+---------+
| | |
+----+------------------------------------------------------------------------------+
| | The contribution to the Investment Trust Initiative of |
| | GBP12,000 (2009 - GBP14,000) paid to AAM was in respect of |
| | marketing and promotion of the Company. At the year end |
| | there was a prepayment of GBP1,000 (2009 - GBP1,000) to |
| | AAM. |
+----+------------------------------------------------------------------------------+
| | With the exception of the Directors' fees and Auditors' |
| | remuneration, irrecoverable VAT has been included under the |
| | relevant expense line above. Irrecoverable VAT on |
| | Directors' fees and Auditors' remuneration is included |
| | within other expenses. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| | Directors' emoluments of GBP55,000 (2009 - GBP55,000) |
| | relate entirely to fees. |
+----+------------------+---------+---------+---------+---------+---------+---------+
+----+-----+-----------------------+---------+---------+---------+---------+----------+---------+----------+----------+
| | | 2010 | 2009 |
+----+-----------------------------+-----------------------------+----------------------------------------------------+
| | | Revenue | Capital | Total | Revenue | Capital | Total |
+----+-----------------------------+---------+---------+---------+--------------------+---------+---------------------+
| 5. | Taxation | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----+-----------------------------+---------+---------+---------+--------------------+---------+---------------------+
| | (a) | Analysis of | | | | | | |
| | | charge for | | | | | | |
| | | year | | | | | | |
+----+-----+-----------------------+---------+---------+---------+--------------------+---------+---------------------+
| | | Total current | - | - | - | - | - | - |
| | | tax (note | | | | | | |
| | | 5(b)) | | | | | | |
+----+-----+-----------------------+---------+---------+---------+--------------------+---------+---------------------+
| | | | _______ | _______ | _______ | _______ | _______ | _______ |
+----+-----+-----------------------+---------+---------+---------+--------------------+---------+---------------------+
| | (b) | Factors affecting current tax charge for year |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | The tax assessed for the year is lower than the standard rate of corporation tax in the UK |
| | | for a large company (28%). The differences are explained below: |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | | | |
+----+-----+-----------------------+-----------------------------+----------------------------------------------------+
| | | | 2010 | 2009 |
+----+-----+-----------------------+-----------------------------+----------------------------------------------------+
| | | | Revenue | Capital | Total | Revenue | Capital | Total |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Return on | 998 | 2,568 | 3,566 | 1,327 | (12,557) | (11,230) |
| | | ordinary | | | | | | |
| | | activities | | | | | | |
| | | before | | | | | | |
| | | taxation | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | | _______ | _______ | _______ | _______ | _______ | _______ |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Return on | 279 | 719 | 998 | 372 | (3,516) | (3,144) |
| | | ordinary | | | | | | |
| | | activities | | | | | | |
| | | multiplied by | | | | | | |
| | | the standard | | | | | | |
| | | rate of | | | | | | |
| | | corporation | | | | | | |
| | | tax of 28% | | | | | | |
| | | (2009 - 28%) | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Effects of: | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | UK dividend | (234) | - | (234) | (321) | - | (321) |
| | | receipts not | | | | | | |
| | | chargeable to | | | | | | |
| | | corporation | | | | | | |
| | | tax | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | UK scrip | (4) | - | (4) | (7) | - | (7) |
| | | dividend | | | | | | |
| | | income not | | | | | | |
| | | chargeable to | | | | | | |
| | | corporation | | | | | | |
| | | tax | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Finance costs | - | 322 | 322 | - | 304 | 304 |
| | | of ZDP shares | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Capital gains | - | (1,069) | (1,069) | - | 3,200 | 3,200 |
| | | not subject to | | | | | | |
| | | tax | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Non taxable | (5) | - | (5) | | | |
| | | overseas | | | | | | |
| | | dividends | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Excess | (36) | 28 | (8) | (44) | 12 | (32) |
| | | management | | | | | | |
| | | expenses | | | | | | |
| | | (utilised)/unutilised | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | | _______ | _______ | _______ | _______ | _______ | _______ |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | Current tax | - | - | - | - | - | - |
| | | charge for the | | | | | | |
| | | year | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | | _______ | _______ | _______ | _______ | _______ | _______ |
+----+-----+-----------------------+---------+---------+---------+---------+-------------------------------+----------+
| | | |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | Due to the Company's status as an investment trust, and the intention to continue meeting |
| | | the conditions required to obtain approval in the foreseeable future, the Company has not |
| | | provided for deferred tax on any capital gains and losses arising on the revaluation or |
| | | disposal of investments. |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | (c) | Provision for deferred taxation |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | There was no provision for deferred taxation made for this year. |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | The Company has not recognised a deferred tax asset of GBP223,000 (2009 - GBP230,000) |
| | | arising as a result of excess management charges. These expenses would only be utilised if |
| | | the Company has profits chargeable to corporation tax in future accounting periods. |
+----+-----+----------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | |
+----+-----+-----------------------+---------+---------+---------+---------+----------+---------+----------+----------+
+----+--------------------------------------------+----------+----------+
| | | 2010 | 2009 |
+----+--------------------------------------------+----------+----------+
| 6. | Dividends | GBP'000 | GBP'000 |
+----+--------------------------------------------+----------+----------+
| | Amounts recognised as distributions to | | |
| | equity holders in the period: | | |
+----+--------------------------------------------+----------+----------+
| | Fourth interim dividend paid 21 August | 431 | 677 |
| | 2009 - 2.1p (2008 - 3.3p) | | |
+----+--------------------------------------------+----------+----------+
| | First interim dividend paid 6 November | 267 | 267 |
| | 2009 - 1.3p (2008 - 1.3p) | | |
+----+--------------------------------------------+----------+----------+
| | Second interim dividend paid 19 February | 267 | 267 |
| | 2010 - 1.3p (2009 - 1.3p) | | |
+----+--------------------------------------------+----------+----------+
| | Third interim dividend paid 7 May 2010 - | 266 | 267 |
| | 1.3p (2009 - 1.3p) | | |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | | 1,231 | 1,478 |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | | | |
+----+--------------------------------------------+----------+----------+
| | The fourth interim dividend for the year of 2.1p per |
| | Ordinary share (2009 - 2.1p) will be paid on 20 August 2010. |
| | There is no final dividend proposed for the year (2009 - |
| | nil). |
+----+------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------+
| | The table below sets out total dividends paid and proposed |
| | in respect of the financial year, which is the basis on |
| | which the requirements of Sections 1158-1159 of the |
| | Corporation Tax Act 2010 are considered. The revenue |
| | available for distribution by way of dividend for the year |
| | is GBP998,000 (2009 - GBP1,327,000). |
+----+------------------------------------------------------------------+
| | | 2010 | 2009 |
+----+--------------------------------------------+----------+----------+
| | | GBP'000 | GBP'000 |
+----+--------------------------------------------+----------+----------+
| | First interim dividend paid 6 November | 267 | 267 |
| | 2009 - 1.3p (2008 - 1.3p) | | |
+----+--------------------------------------------+----------+----------+
| | Second interim dividend paid 19 February | 267 | 267 |
| | 2010 - 1.3p (2009 - 1.3p) | | |
+----+--------------------------------------------+----------+----------+
| | Third interim dividend paid 7 May 2010 - | 266 | 267 |
| | 1.3p (2009 - 1.3p) | | |
+----+--------------------------------------------+----------+----------+
| | Fourth interim dividend payable 20 August | 431 | 431 |
| | 2010 - 2.1p (2009 - 2.1p) | | |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | | 1,231 | 1,232 |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
+----+-----------------------------+----------+------------+----------+------------+
| | | 2010 | 2009 |
+----+-----------------------------+-----------------------+-----------------------+
| 7. | Return per share | GBP'000 | p | GBP'000 | p |
+----+-----------------------------+----------+------------+----------+------------+
| | Revenue return | 998 | 4.86 | 1,327 | 6.47 |
+----+-----------------------------+----------+------------+----------+------------+
| | Capital return | 2,568 | 12.52 | (12,557) | (61.20) |
+----+-----------------------------+----------+------------+----------+------------+
| | | ________ | ________ | ________ | ________ |
+----+-----------------------------+----------+------------+----------+------------+
| | Total return | 3,566 | 17.38 | (11,230) | (54.73) |
+----+-----------------------------+----------+------------+----------+------------+
| | | ________ | ________ | ________ | ________ |
+----+-----------------------------+----------+------------+----------+------------+
| | | | | |
+----+----------------------------------------+------------+----------+------------+
| | Weighted average number of Ordinary | 20,519,056 | | 20,519,056 |
| | shares in issue | | | |
+----+-----------------------------+----------+------------+----------+------------+
+----+-------+------------------------------------+----------+----------+
| | | 2010 | 2009 |
+----+--------------------------------------------+----------+----------+
| | | Listed | Listed |
+----+--------------------------------------------+----------+----------+
| | | in UK | in UK |
+----+--------------------------------------------+----------+----------+
| 8. | Investments | GBP'000 | GBP'000 |
+----+--------------------------------------------+----------+----------+
| | Fair value through profit or loss: | | |
+----+--------------------------------------------+----------+----------+
| | Opening fair value | 19,314 | 34,909 |
+----+--------------------------------------------+----------+----------+
| | Opening fair value losses on investments | 2,824 | 1,171 |
| | held | | |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | Opening book cost | 22,138 | 36,080 |
+----+--------------------------------------------+----------+----------+
| | Purchases at cost | 8,813 | 7,827 |
+----+--------------------------------------------+----------+----------+
| | Sales | - proceeds | (4,026) | (11,987) |
+----+-------+------------------------------------+----------+----------+
| | | - losses | (448) | (9,782) |
+----+-------+------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | Closing book cost | 26,477 | 22,138 |
+----+--------------------------------------------+----------+----------+
| | Closing fair value gains/(losses) on | 1,441 | (2,824) |
| | investments held | | |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | Closing fair value | 27,918 | 19,314 |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | Investments listed on a recognised | 27,918 | 19,314 |
| | investment exchange | | |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | Gains/(losses) on investments | | |
+----+--------------------------------------------+----------+----------+
| | Losses on sales | (448) | (9,782) |
+----+--------------------------------------------+----------+----------+
| | Increase/(decrease) in fair value gains | 4,265 | (1,653) |
| | on investments held | | |
+----+--------------------------------------------+----------+----------+
| | Increase in value of Certificate of | - | 4 |
| | Deposit | | |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | | 3,817 | (11,431) |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | Transaction costs | | |
+----+--------------------------------------------+----------+----------+
| | During the year expenses were incurred in acquiring or |
| | disposing of investments classified as fair value through |
| | profit or loss. These have been expensed through capital |
| | and are included within gains/(losses) on investments in |
| | the Income Statement. The total costs were as follows: |
+----+------------------------------------------------------------------+
| | | | |
+----+--------------------------------------------+----------+----------+
| | | 2010 | 2009 |
+----+--------------------------------------------+----------+----------+
| | | GBP'000 | GBP'000 |
+----+--------------------------------------------+----------+----------+
| | Purchases | 27 | 11 |
+----+--------------------------------------------+----------+----------+
| | Sales | 2 | 8 |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | | 29 | 19 |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+-------+------------------------------------+----------+----------+
+----+--------------------------------------------+----------+----------+
| | | 2010 | 2009 |
+----+--------------------------------------------+----------+----------+
| 9. | Debtors: amounts falling due within one | GBP'000 | GBP'000 |
| | year | | |
+----+--------------------------------------------+----------+----------+
| | Net dividends and interest receivable | 244 | 261 |
+----+--------------------------------------------+----------+----------+
| | VAT recoverable on investment management | - | 108 |
| | fees | | |
+----+--------------------------------------------+----------+----------+
| | Sundry debtors | 23 | 10 |
+----+--------------------------------------------+----------+----------+
| | Amounts due from brokers | 63 | - |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
| | | 330 | 379 |
+----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+----+--------------------------------------------+----------+----------+
+-----+--------------------------------------------+----------+----------+
| | | 2010 | 2009 |
+-----+--------------------------------------------+----------+----------+
| 10. | Creditors: amounts falling due within one | GBP'000 | GBP'000 |
| | year | | |
+-----+--------------------------------------------+----------+----------+
| | Management fees | 51 | 46 |
+-----+--------------------------------------------+----------+----------+
| | Amount due to brokers | 65 | - |
+-----+--------------------------------------------+----------+----------+
| | Other creditors | 46 | 47 |
+-----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+--------------------------------------------+----------+----------+
| | | 162 | 93 |
+-----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+--------------------------------------------+----------+----------+
| | Zero Dividend Preference shares | 15,167 | - |
+-----+--------------------------------------------+----------+----------+
| | Accrued finance costs | 5,129 | - |
+-----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+--------------------------------------------+----------+----------+
| | | 20,296 | - |
+-----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+--------------------------------------------+----------+----------+
| | | 20,458 | 93 |
+-----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+--------------------------------------------+----------+----------+
| | |
+-----+------------------------------------------------------------------+
| | 15,166,618 Zero Dividend Preferences shares (ZDP) were |
| | issued under a Placing and Reconstruction Scheme. The ZDP |
| | shares had an initial capital entitlement of 100p per share, |
| | growing to approximately 141.85p on 31 May 2011. The assets |
| | of the Company over which the ZDP shares have a prior |
| | ranking entitlement do not include the Company's accumulated |
| | revenue reserves, which will be attributable to the Ordinary |
| | shares. |
+-----+--------------------------------------------+----------+----------+
+-----+------------------------------------------+----------+----------+
| | | 2010 | 2009 |
+-----+------------------------------------------+----------+----------+
| 11. | Creditors: amounts falling due in more | GBP'000 | GBP'000 |
| | than one year | | |
+-----+------------------------------------------+----------+----------+
| | Zero Dividend Preference shares | - | 15,167 |
+-----+------------------------------------------+----------+----------+
| | Accrued finance costs | - | 3,980 |
+-----+------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+------------------------------------------+----------+----------+
| | | - | 19,147 |
+-----+------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+------------------------------------------+----------+----------+
| | | | |
+-----+------------------------------------------+----------+----------+
+-----+----------------------+------------+----------+------------+----------+
| | | 2010 | 2009 |
+-----+----------------------+-----------------------+-----------------------+
| | | | Issued | | Issued |
| | | | and | | and |
+-----+----------------------+------------+----------+------------+----------+
| | | Authorised | fully | Authorised | fully |
| | | | paid | | paid |
+-----+----------------------+------------+----------+------------+----------+
| 12. | Called-up share | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | capital | | | | |
+-----+----------------------+------------+----------+------------+----------+
| | Ordinary shares of | 550 | 205 | 550 | 205 |
| | 1p each | | | | |
+-----+----------------------+------------+----------+------------+----------+
| | | ________ | ________ | ________ | ________ |
+-----+----------------------+------------+----------+------------+----------+
| | | | | | |
+-----+----------------------+------------+----------+------------+----------+
| | As at 31 May 2010 there were 20,519,056 (2009 - 20,519,056) |
| | Ordinary shares of 1p in issue. |
| | The number of authorised ZDP shares is 37,000,000. Details |
| | of the issued number are shown in note 10. |
+-----+----------------------+------------+----------+------------+----------+
+-----+------------------------------------------+----------+----------+
| | | 2010 | 2009 |
+-----+------------------------------------------+----------+----------+
| 13. | Retained earnings | GBP'000 | GBP'000 |
+-----+------------------------------------------+----------+----------+
| | Capital reserve | | |
+-----+------------------------------------------+----------+----------+
| | At 31 May 2009 | (12,795) | (238) |
+-----+------------------------------------------+----------+----------+
| | Movement in investment holdings fair | 4,265 | (1,653) |
| | value losses | | |
+-----+------------------------------------------+----------+----------+
| | Losses on realisation of investments at | (445) | (9,782) |
| | fair value | | |
+-----+------------------------------------------+----------+----------+
| | Finance costs of ZDP Shareholders | (1,149) | (1,084) |
+-----+------------------------------------------+----------+----------+
| | Movement in fair value of Certificate of | (3) | 4 |
| | Deposit | | |
+-----+------------------------------------------+----------+----------+
| | Investment management fees | (100) | (96) |
+-----+------------------------------------------+----------+----------+
| | VAT recoverable on investment management | - | 54 |
| | fees | | |
+-----+------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+------------------------------------------+----------+----------+
| | At 31 May 2010 | (10,227) | (12,795) |
+-----+------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+------------------------------------------+----------+----------+
| | Revenue reserve | | |
+-----+------------------------------------------+----------+----------+
| | | 2010 | 2009 |
+-----+------------------------------------------+----------+----------+
| | | GBP'000 | GBP'000 |
+-----+------------------------------------------+----------+----------+
| | At 31 May 2009 | 1,167 | 1,318 |
+-----+------------------------------------------+----------+----------+
| | Revenue | 998 | 1,327 |
+-----+------------------------------------------+----------+----------+
| | Dividends paid | (1,231) | (1,478) |
+-----+------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+------------------------------------------+----------+----------+
| | At 31 May 2010 | 934 | 1,167 |
+-----+------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+------------------------------------------+----------+----------+
+-----+--------------------+--------------+--------------+--------------+--------------+
| 14. | Net asset value per share |
+-----+--------------------------------------------------------------------------------+
| | The net asset value per share and the net assets |
| | attributable to Shareholders at the period end, calculated |
| | in accordance with the Articles of Association were as |
| | follows: |
+-----+--------------------------------------------------------------------------------+
| | | | | | |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | Net | | Net | |
| | | asset | | asset | |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | value | Net | value | Net |
| | | | asset | | asset |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | per | values | per | values |
| | | share | | share | |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | attributable | attributable | attributable | attributable |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | 2010 | 2010 | 2009 | 2009 |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | p | GBP'000 | p | GBP'000 |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | Zero Dividend | 133.8 | 20,296 | 126.2 | 19,147 |
| | Preference share | | | | |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | ________ | ________ | ________ | ________ |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | Ordinary share | 53.4 | 10,947 | 42.0 | 8,612 |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | ________ | ________ | ________ | ________ |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | | | | | |
+-----+--------------------+--------------+--------------+--------------+--------------+
| | The net asset value per ZDP share is based on funds |
| | attributable to ZDP Shareholders and on 15,166,618 (2009 - |
| | 15,166,618) ZDP shares, being the number of ZDP shares in |
| | issue at the year end. |
+-----+--------------------------------------------------------------------------------+
| | |
+-----+--------------------------------------------------------------------------------+
| | The net asset value per Ordinary share is based on funds |
| | attributable to Ordinary Shareholders and on 20,519,056 |
| | (2009 - 20,519,056) Ordinary shares, being the number of |
| | Ordinary shares in issue at the year end. |
+-----+--------------------+--------------+--------------+--------------+--------------+
+-----+--------------------------------------------+----------+----------+
| 15. | Reconciliation of net total return before | 2010 | 2009 |
| | finance costs and | | |
+-----+--------------------------------------------+----------+----------+
| | taxation to net cash inflow from operating | GBP'000 | GBP'000 |
| | activities | | |
+-----+--------------------------------------------+----------+----------+
| | Net total return on ordinary activities | 4,715 | (10,146) |
| | before finance costs and taxation | | |
+-----+--------------------------------------------+----------+----------+
| | Less: (gains)/losses on investments | (3,817) | 11,431 |
+-----+--------------------------------------------+----------+----------+
| | Decrease/(increase) in accrued income | 17 | (70) |
+-----+--------------------------------------------+----------+----------+
| | Decrease/(increase) in other debtors | 95 | (109) |
+-----+--------------------------------------------+----------+----------+
| | Increase/(decrease) in other creditors | 4 | (18) |
+-----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+--------------------------------------------+----------+----------+
| | Net cash inflow from operating activities | 1,014 | 1,088 |
+-----+--------------------------------------------+----------+----------+
| | | ________ | ________ |
+-----+--------------------------------------------+----------+----------+
+-----+----------------------+----------+----------+-----------+----------+
| | | At | | | At |
+-----+----------------------+----------+----------+-----------+----------+
| | | 31 May | | Non-cash | 31 May |
+-----+----------------------+----------+----------+-----------+----------+
| | | 2009 | Cashflow | movements | 2010 |
+-----+----------------------+----------+----------+-----------+----------+
| 16. | Analysis of changes | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | in net debt | | | | |
+-----+----------------------+----------+----------+-----------+----------+
| | Cash at bank | 6,909 | (3,846) | 94 | 3,157 |
+-----+----------------------+----------+----------+-----------+----------+
| | AAA Money Market | 1,250 | (1,250) | - | - |
| | funds | | | | |
+-----+----------------------+----------+----------+-----------+----------+
| | Debt due | (19,147) | - | (1,149) | (20,296) |
+-----+----------------------+----------+----------+-----------+----------+
| | | ________ | ________ | ________ | ________ |
+-----+----------------------+----------+----------+-----------+----------+
| | Net debt | (10,988) | (5,096) | (1,055) | (17,139) |
+-----+----------------------+----------+----------+-----------+----------+
| | | ________ | ________ | ________ | ________ |
+-----+----------------------+----------+----------+-----------+----------+
+-------+-----+--------------------+-----+-----+---+------+--+---------+--+-----------+-+
| 17. | Risk management, financial assets and liabilities |
+-------+-------------------------------------------------------------------------------+
| | The Company's financial instruments comprise debt and equity securities |
| | and other investments, cash balances, ZDP shares and debtors and |
| | creditors that arise directly from its operations; for example, in |
| | respect of sales and purchases awaiting settlement, and debtors for |
| | accrued income. The Company also has the ability to enter into |
| | derivative transactions in the form of forward foreign currency |
| | contracts and futures and options for the purpose of managing currency |
| | and market risks arising from the Company's activities. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | The main risks the Company faces from its financial instruments are (i) |
| | market price risk (comprising interest rate risk, currency risk and |
| | other price risk), (ii) liquidity risk and (iii) credit risk. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | The Board regularly reviews and agrees policies for managing each of |
| | these risks. The Manager's policies for managing these risks are |
| | summarised below and have been applied throughout the year. The |
| | numerical disclosures exclude short-term debtors and creditors (with |
| | the exception of the ZDP shares) on the basis their impact is |
| | considered immaterial. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | (i) | Market price risk |
+-------+-----+-------------------------------------------------------------------------+
| | | The fair value or future cash flows of a financial instrument held |
| | | by the Company may fluctuate because of changes in market prices. |
| | | This market risk comprises three elements - interest rate risk, |
| | | currency risk and other price risk. |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | Interest rate risk |
+-------+-----+-------------------------------------------------------------------------+
| | | Interest rate movements may affect: |
+-------+-----+-------------------------------------------------------------------------+
| | | - the fair value of the investments in fixed interest rate |
| | | securities; |
+-------+-----+-------------------------------------------------------------------------+
| | | - the level of income receivable on cash deposits and other |
| | | variable rate securities; |
+-------+-----+-------------------------------------------------------------------------+
| | | - interest payable on the Company's variable rate borrowings. |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | The possible effects on fair value and cash flows that could arise |
| | | as a result of changes in interest rates are taken into account |
| | | when making investment and borrowing decisions. |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | Cash balances can be managed to reduce the effective level of |
| | | gearing. The Company places funds with authorised deposit takers |
| | | from time to time and is therefore potentially at risk from the |
| | | failure of any such institution of which it is a creditor. |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | Interest risk profile |
+-------+-----+-------------------------------------------------------------------------+
| | | The interest rate risk profile of the portfolio of financial |
| | | assets and liabilities at the Balance Sheet date was as follows: |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | | Weighted | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | average | Fixed | Floating |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | interest | rate | rate |
| | | | rate | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | At 31 May 2010 | % | GBP'000 | GBP'000 |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Assets | | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Cash and short-term deposits | 0.64 | - | 3,157 |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | ________ | ________ | ________ |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Liabilities | | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Zero Dividend Preference | 5.84 | (20,296) | - |
| | | shares | | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | ________ | ________ | ________ |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | Weighted | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | average | Fixed | Floating |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | interest | rate | rate |
| | | | rate | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | At 31 May 2009 | % | GBP'000 | GBP'000 |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Assets | | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Cash and short-term deposits | 2.32 | - | 8,159 |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | ________ | ________ | ________ |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Liabilities | | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | Zero Dividend Preference | 5.84 | (19,147) | - |
| | | shares | | | |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | | ________ | ________ | ________ |
+-------+-----+--------------------------------+-------------+------------+-------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | 15,166,618 Zero Dividend Preferences shares (ZDP) have an initial |
| | | capital entitlement of 100p per share, growing to 141.85p on 31 |
| | | May 2011. |
+-------+-----+-------------------------------------------------------------------------+
| | | The floating rate assets consist of cash deposits on call and |
| | | money market funds earning interest at prevailing market rates. |
+-------+-----+-------------------------------------------------------------------------+
| | | All financial liabilities are measured at amortised cost. |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | Interest rate sensitivity |
+-------+-----+-------------------------------------------------------------------------+
| | | The sensitivity analyses below have been determined based on the |
| | | exposure to interest rates at the Balance Sheet date and the |
| | | stipulated change taking place at the beginning of the financial |
| | | year and held constant throughout the reporting period in the case |
| | | of instruments that have floating rates. |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | If interest rates had been 100 basis points higher or lower and |
| | | all other variables were held constant, the Company's: |
+-------+-----+-------------------------------------------------------------------------+
| | | - profit for the year ended 31 May 2010 would increase/decrease by |
| | | GBP32,000 (2009 - increase/decrease by GBP82,000). This is mainly |
| | | attributable to the Company's exposure to interest rates on its |
| | | floating rate cash balances. |
+-------+-----+-------------------------------------------------------------------------+
| | | - the Company holds no financial instruments that will have an |
| | | equity reserve impact. |
+-------+-----+-------------------------------------------------------------------------+
| | | |
+-------+-----+-------------------------------------------------------------------------+
| | | In the opinion of the Directors, the above sensitivity analyses |
| | | are not representative of the year as a whole, since the level of |
| | | exposure changes frequently as part of the interest rate risk |
| | | management process used to meet the Company's objectives. |
+-------+-----+-------------------------------------------------------------------------+
| | |
+-------------+-------------------------------------------------------------------------+
| | Foreign currency risk |
+-------------+-------------------------------------------------------------------------+
| | None of the Company's investment portfolio is invested in overseas |
| | securities and the Balance Sheet cannot be affected by movements |
| | in foreign exchange rates. |
+-------------+-------------------------------------------------------------------------+
| | |
+-------------+-------------------------------------------------------------------------+
| | The revenue account is subject to currency fluctuation arising on |
| | overseas income but the effect is immaterial and the Company does |
| | not hedge this currency risk. |
+-------------+-------------------------------------------------------------------------+
| | |
+-------------+-------------------------------------------------------------------------+
| | Other price risk |
+-------+-------------------------------------------------------------------------------+
| | Other price risks (ie changes in market prices other than those arising |
| | from interest rate or currency risk) may affect the value of the quoted |
| | investments, which amounted to GBP27,918,000 (2009 - GBP19,314,000) at |
| | the year end. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | The Company has two objectives, to provide Ordinary Shareholders with |
| | an attractive level of income, together with the potential for capital |
| | and income growth, and to provide ZDP Shareholders with a fixed capital |
| | return of 141.85p per share (GBP21,514,000) on 31 May 2011. The Company |
| | aims to achieve this through investing in a portfolio of diversified |
| | securities which, given the income requirements of the Company, are |
| | likely to yield in excess of the yield available on the broader UK |
| | equity market. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | Other price risk sensitivity |
+-------+-------------------------------------------------------------------------------+
| | If market prices at the Balance Sheet date had been 10% higher or lower |
| | while all other variables remained constant, the return attributable to |
| | ordinary Shareholders for the year ended 31 May 2010 would have |
| | increased/decreased by GBP2,792,000 (2009 - increase/decrease of |
| | GBP1,931,000) and equity reserves would have increased/decreased by the |
| | same amount. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| (ii) | Liquidity risk |
+-------+-------------------------------------------------------------------------------+
| | This is the risk that the Company will encounter difficulty in meeting |
| | obligations associated with financial liabilities. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | Liquidity risk is not considered to be significant as the Company's |
| | fair value assets comprise readily realisable securities, which can be |
| | sold to meet funding commitments if necessary. In addition, all current |
| | assets and current liabilities are receivable/payable within 3 months. |
| | The ZDP shares are repayable on 31 May 2011 at a rate of 141.85p per |
| | share. Cash flow is equal to carrying value for all other assets. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| (iii) | Credit risk |
+-------+-------------------------------------------------------------------------------+
| | This is failure of the counter party to a transaction to discharge its |
| | obligations under that transaction that could result in the Company |
| | suffering a loss. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | The risk is not considered to be significant, and is managed as |
| | follows: |
+-------+-------------------------------------------------------------------------------+
| | - where the Investment Manager makes an investment in a bond, corporate |
| | or otherwise, the credit rating of the issuer is taken into account so |
| | as to minimise the risk to the Company of default; |
+-------+-------------------------------------------------------------------------------+
| | - investment transactions are carried out with a large number of |
| | brokers, whose credit rating of which is taken into account so as to |
| | minimise the risk to the Company of default; |
+-------+-------------------------------------------------------------------------------+
| | - investment transactions are carried out with a large number of |
| | brokers, whose credit-standing is reviewed periodically by the |
| | Investment Manager, and limits are set on the amount that may be due |
| | from any one broker; |
+-------+-------------------------------------------------------------------------------+
| | - cash is held only with reputable banks with high quality external |
| | credit enhancements; and |
+-------+-------------------------------------------------------------------------------+
| | - assets are ring fenced and protected in the event of custodian |
| | default. |
+-------+-------------------------------------------------------------------------------+
| | |
+-------+-------------------------------------------------------------------------------+
| | Credit risk exposure |
+-------+-------------------------------------------------------------------------------+
| | In summary, compared to the amounts in the Balance Sheet, the maximum |
| | exposure to credit risk at 31 May was as follows: |
+-------+-------------------------------------------------------------------------------+
| | | | | | | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | Balance | Maximum | Balance | Maximum | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | Sheet | exposure | Sheet | exposure | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | 2010 | 2010 | 2009 | 2009 | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | Loans and receivables | 307 | 307 | 369 | 369 | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | AAA Money Market funds | - | - | 1,250 | 1,250 | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | Cash at bank and in | 3,157 | 3,157 | 6,909 | 6,909 | |
| | hand | | | | | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | ________ | ________ | ________ | ________ | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | 3,464 | 3,464 | 8,528 | 8,528 | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | ________ | ________ | ________ | ________ | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | | | | | | |
+-------+--------------------------+-----------+----------+------------+--------------+-+
| | None of the Company's financial assets is past due or impaired. | |
+-------+-----------------------------------------------------------------------------+-+
| | | |
+-------+-----------------------------------------------------------------------------+-+
| | Fair values of financial assets and financial liabilities | |
+-------+-----------------------------------------------------------------------------+-+
| | The fair and book value of the financial liabilities are stated | |
| | below: | |
+-------+-----------------------------------------------------------------------------+-+
| | | Book | Fair | Book | Fair valueA | |
| | | value | valueA | value | | |
+-------+--------------------------------+---------+---------+---------+--------------+-+
| | | 2010 | 2010 | 2009 | 2009 | |
+-------+--------------------------------+---------+---------+---------+--------------+-+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+-------+--------------------------------+---------+---------+---------+--------------+-+
| | Zero Dividend Preference | 20,296 | 20,217 | 19,147 | 19,383 | |
| | share | | | | | |
+-------+--------------------------------+---------+---------+---------+--------------+-+
| | A Based on market value at | | | | | |
| | the year end. | | | | | |
+-------+--------------------------------+---------+---------+---------+--------------+-+
| | | | | | | |
+-------+--------------------------------+---------+---------+---------+--------------+-+
| | All other assets and liabilities of the Company are included in the | |
| | Balance Sheet at fair value. | |
+-------+-----------------------------------------------------------------------------+-+
| | | | | | | | | | | | |
+-------+-----+--------------------+-----+-----+---+------+--+---------+--+-----------+-+
+--+--------------------------------------------------------------+
| 18.| Capital management policies and procedures |
+--+--------------------------------------------------------------+
| | The objective of the Company is to provide Ordinary |
| | Shareholders with an attractive level of income, together |
| | with the potential for capital and income growth and to |
| | provide ZDP Shareholders with a pre-determined capital |
| | entitlement on 31 May 2011. |
+--+--------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------+
| | The Company manages its capital to ensure that it will be |
| | able to continue as a going concern until its wind-up date |
| | in 2011 while maximising the return to shareholders through |
| | the optimisation of the debt and equity balance. |
+--+--------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------+
| | The Board monitors and reviews the broad structure of the |
| | Company's capital on an ongoing basis. This review includes: |
+--+--------------------------------------------------------------+
| | - the planned level of gearing which takes account of the |
| | Investment Manager's views on the market; |
+--+--------------------------------------------------------------+
| | - the level of equity and ZDP shares in issue; |
+--+--------------------------------------------------------------+
| | - the extent to which revenue in excess of that which is |
| | required to be distributed should be retained. |
+--+--------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------+
| | The Company's objectives, policies and processes for |
| | managing capital are unchanged from the preceding accounting |
| | period. |
+--+--------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------+
| | The Company does not have any externally imposed capital |
| | requirements. |
+--+--------------------------------------------------------------+
+--+--------------------------------------------------------------+
| 19.| Contingent assets |
+--+--------------------------------------------------------------+
| | On 5 November 2007, the European Court of Justice ruled that |
| | management fees on investment trusts should be exempt from |
| | VAT. HMRC has accepted the ruling and acknowledged its |
| | liability to pay claims in respect of VAT borne by |
| | investment companies. |
+--+--------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------+
| | The Company has received a refund GBP108,000 representing |
| | all VAT charged on investment management fees for the period |
| | 1 June 2005 to 31 August 2007; this was recognised in the |
| | previous year's financial statements and has been allocated |
| | to revenue and capital respectively, in accordance with the |
| | accounting policy of the Company for the periods in which |
| | the VAT was charged. The amount for any interest due on |
| | recoverable amounts and the timescale for receipt are at |
| | present uncertain and the Company has therefore taken no |
| | account in these financial statements of any such repayment. |
+--+--------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------+
| | The Company has not been charged VAT on its investment |
| | management fees from 1 September 2007. |
+--+--------------------------------------------------------------+
+--+-----------------------+------+---------+---------+---------+---------+
|20 | Fair value hierarchy |
+--+----------------------------------------------------------------------+
| | The Company adopted the amendments to FRS 29 'Financial |
| | Instruments: Disclosures' effective from 1 January 2009. |
| | These amendments require an entity to classify fair value |
| | measurements using a fair value hierarchy that reflects |
| | the significance of the inputs used in making the |
| | measurements. The fair value hierarchy shall have the |
| | following levels: |
+--+----------------------------------------------------------------------+
| | |
+--+----------------------------------------------------------------------+
| | - Level 1: quoted prices (unadjusted) in active markets |
| | for identical assets or liabilities; |
+--+----------------------------------------------------------------------+
| | - Level 2: inputs other than quoted prices included |
| | within Level 1 that are observable for the assets or |
| | liability, either directly (ie as prices) or indirectly |
| | (ie derived from prices); and |
+--+----------------------------------------------------------------------+
| | - Level 3: inputs for the asset or liability that are |
| | not based on observable market data (unobservable |
| | inputs). |
+--+----------------------------------------------------------------------+
| | |
+--+----------------------------------------------------------------------+
| | The financial assets and liabilities measured at fair |
| | value in the Balance Sheet are grouped into the fair |
| | value hierarchy at 31 May 2010 as follows: |
+--+----------------------------------------------------------------------+
| | |
+--+----------------------------------------------------------------------+
| | | | Level | Level | Level | Total |
| | | | 1 | 2 | 3 | |
+--+-----------------------+------+---------+---------+---------+---------+
| | |Note |GBP'000 |GBP'000 |GBP'000 |GBP'000 |
+--+-----------------------+------+---------+---------+---------+---------+
| | | | | | | |
+--+-----------------------+------+---------+---------+---------+---------+
| | Financial assets at fair value through profit or loss |
+--+----------------------------------------------------------------------+
| | Quoted equities | a) | 27,918 | - | - | 27,918 |
+--+-----------------------+------+---------+---------+---------+---------+
| | | | | | | |
+--+-----------------------+------+---------+---------+---------+---------+
| | | | _______ | _______ | _______ | _______ |
+--+-----------------------+------+---------+---------+---------+---------+
| | Net fair value | | 27,918 | - | - | 27,918 |
+--+-----------------------+------+---------+---------+---------+---------+
| | | | _______ | _______ | _______ | _______ |
+--+-----------------------+------+---------+---------+---------+---------+
| | | | | | | |
+--+-----------------------+------+---------+---------+---------+---------+
| | a) Quoted equities | | | | | |
+--+-----------------------+------+---------+---------+---------+---------+
| | The fair value of the Company's investments in quoted |
| | equities have been determined by reference to their |
| | quoted bid prices at the reporting date. Quoted equities |
| | included in Fair Value Level 1 are actively traded on |
| | recognised stock exchanges. |
+--+-----------------------+------+---------+---------+---------+---------+
+--+--------------------------------------------------------------+
| 21.| Related party disclosure |
+--+--------------------------------------------------------------+
| | The transactions with Aberdeen Asset Managers Limited and |
| | the year end balances are disclosed in notes 3 and 4 of the |
| | financial statements. |
+--+--------------------------------------------------------------+
22. The fourth interim dividend of 2.1p per share will be paid on 20 August
2010 to shareholders on the register at the close of business on 23 July 2010.
The ex-dividend date is 21 July 2010.
23.The Annual Financial Report Announcement is not the Company's statutory
accounts. The above results for the year ended 31 May 2010 have been agreed with
the auditors and are an abridged version of the Company's full accounts, which
have been approved and audited with an unqualified report. The 2010 and 2009
statutory accounts received unqualified reports from the Company's auditors and
did not include any reference to matters to which the auditors drew attention by
way of emphasis without qualifying the reports, and did not contain a statement
under either section 498(2) or 498(3) of the Companies Act 2006. The financial
information for 2009 is derived from the statutory accounts for 2009 which have
been delivered to the Registrar of Companies. The 2010 accounts will be filed
with the Registrar of Companies in due course.
24. The Annual Report and Accounts will be posted to shareholders in July
2010 and copies will be available from the investment manager or from the
Company's website, www.edinburghnewincome.co.uk.
For Edinburgh New Income Trust plc
Aberdeen Asset Managers Limited, Company Secretary
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFUSWLFSSELW
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