TIDMIEI
Invesco English and International Trust plc
Half-Yearly Financial Report for the Six months to 30 September 2009
KEY FACTS
Invesco English and International Trust plc is a UK investment trust listed on
the London Stock Exchange. The facility for shareholders to request redemption
of their shares on a quarterly basis at near asset value should reduce the risk
that the Company's shares trade at a wide discount to net asset value, and
should reduce the volatility of the discount.
Objective of the Company
The Company seeks to achieve capital growth through investment mainly in UK
quoted smaller companies. Its benchmark is the Hoare Govett Smaller Companies
plus AIM (excluding Investment Trusts) Index. It seeks to invest in companies
offering particular value and holds a large number of investments in order to
maximise investment opportunity while controlling the impact of stock-specific
risk. Sector weightings are primarily a consequence of stock selection.
Performance Statistics
The Benchmark Index of the Company is the Hoare Govett Smaller Companies plus
AIM (excluding Investment Trusts).
At At
30 September 31 March %
2009 2009 Change
Capital
Shareholders' funds (GBP'000) 53,650 41,502 +29.3
Net asset value per ordinary
share:
- balance sheet 237.8p 171.0p +39.1
- after charging proposed
dividends (capital NAV) 234.8p 164.0p +43.2
Mid-market price per ordinary 215.8p 139.5p +54.7
share
Discount per ordinary share 9.3% 18.4%
Capital returns:
Benchmark Index 2,818.2 1,850.3 +52.3
FTSE Small Cap Index 2,535.0 1,443.6 +75.6
Portfolio performance +42.7
Gearing - actual 100 100
- effective 100 100
Actual gearing reflects the amount of loans already arranged and in use by the
Company. This is the gearing figure published by the Association of Investment
Companies. It is calculated by dividing the aggregate of shareholders' funds
and all drawdown loans by shareholders' funds.
Effective gearing reflects the amount of loans actively invested in assets and
not held in cash. It is calculated by dividing fixed asset investments by
shareholders' funds.
Revenue
For the six months/year ended
30 September 31 March
2009 2009
Dividends per ordinary share:
Final paid - 1.3p
Special in respect of VAT
refunds
on management fees 3.0p 5.7p
INTERIM MANAGEMENT REPORT INCORPORATING THE CHAIRMAN'S STATEMENT
Chairman's Statement
Economic and market background
The period under review began with the financial world peering into the abyss.
The collapse of banks, insurance companies and the bailing out of the US
mortgage agencies; coupled with a seizing up of money markets and liquidity in
many asset classes resulted in a drop in economic output that was greater than
seen at any time since the Second World War. Fears that the world would fall
into a global depression were real and widespread. The policy response from
governments and central banks has been unprecedented, with the degree of fiscal
stimulus and monetary response unlike anything seen before. This response has
stabilised economic output; has led to increase in asset prices; and improved
the confidence of both companies and consumers.
However, while the there may be some grounds for optimism over the
sustainability of economic recovery overseas, the position of the UK looks
bleak. The reason for this is that it remains difficult to see where demand, in
order to sustain growth in the UK, can come from. Consumption, the largest
component of demand is likely to be weak as consumers cope with high levels of
indebtedness, increasing unemployment and rising taxes; government spending is
likely to be cut given the parlous state of the public finances and investment
will be weak given the current low levels of capacity utilisation. There may be
a modest boost from restocking, and from the improvement in competitiveness
that the reduction in the value of the pound has given to exporters, but these
effects will be small compared to the negatives listed above.
For these reasons, the recovery in the UK is likely to be weak, with economic
growth being extremely modest for some years. Despite this weak economic
backdrop, equities represent good value, particularly when compared to other
asset classes. Equities have proved to have been a poor investment over the
last decade. However, historically investing after such a period has been
rewarded with strong returns over the subsequent decade. It is likely to be
those businesses that can demonstrate sustainable growth in a low growth
environment which will deliver the strongest returns going forward.
The recovery in share prices since the lows in March has been unusually rapid.
Indeed the third quarter of this year saw FTSE 100's best ever quarterly
performance. Much of this rally can be explained as an understandable response
to the avoidance of a complete collapse in the financial system back in the
Spring. Markets have also been supported by the amount of money governments and
banks have pumped into the system. Generally, riskier assets have outperformed
lower risk assets over the period and smaller companies have outperformed
larger companies. The FTSE All Share Index returned 38.2% over the six months,
and the Hoare Govett Smaller Companies plus AiM, excluding investment trusts
was up 52.3%. The rally has continued since the period end, buoyed in part by
expectations that interest rates are likely to remain low for a considerable
period of time, in light of the poor economic outlook.
Performance
The net asset value per share, after accounting for the dividend, increased by
42.4% to 233.5p and the share price increased by 54.7% as the discount narrowed
to a more normal level of under 10%. While the returns were good in an absolute
sense, it is disappointing to have increased less than the benchmark index. The
reason for this is that the rally has been led by more highly borrowed and
cyclical businesses as investors have attempted to gain exposure to the
economic recovery that they expect. The Company's portfolio has tended to
invest proportionately more of its assets in companies with strong balance
sheets and less sensitivity to the economic cycle. The share prices of these
businesses have risen by less than "lower quality" stocks. The benchmark index
is rebalanced at the beginning of every calendar year, and at the beginning of
2009 a number of previously very large companies, which had become financially
distressed, fell into the index. The sharp falls in share prices during 2008
were not captured by the HGSC plus AiM (excluding investment trusts) because at
the beginning of 2008 they were too large to be included in a small company
index. As the worst fears of economic meltdown abated, these speculative stocks
rebounded strongly, and in many cases, will be too large for the index when it
is rebalanced in January 2010. In common with many other UK small company
funds, the Trust has had little exposure to these speculative stocks, which
have briefly entered the small company universe and this is a significant
reason why most small company funds, during 2009, have underperformed the
benchmark.
Portfolio
Given the nature of the rally, with more cyclical businesses leading the way
the stronger performances were seen from stocks like IQE, a manufacturer of
complex semiconductor wafers; Sterling Energy, an oil company with exploration
prospects in highly prospective Kurdistan; Geiger Counter, with investments in
uranium producers, and Hill & Smith, a galvanizer and infrastructure products
company. The share prices of these companies all at least doubled over the six
months. More damaging performances were delivered by SQS Software, which warned
on profits as clients cut spending. The share price has recovered somewhat
since the end of the period, on the back of a number of encouraging contract
wins. Advanced Medical Solutions, the manufacturer of advanced woundcare
products, was weak, suffering from both a lack of interest in steady growth
companies, and the cost of a failed acquition attempt.
The Company purchased holdings in two property businesses during the period,
Helical Bar and Development Securities, having had no exposure to the sector
for some time. While the underlying outlook for rental growth and tenant demand
remains weak, the continuing expansionary monetary policy stance is likely to
create opportunities for entrepreneurial property companies. A holding was also
taken in Education Development International, a rapidly growing provider of NVQ
examination services. On the sales front, the drug testing businesses Concateno
, was taken over at a healthy premium; Lancashire Holdings, the insurer was
sold at a good profit after a sharp rise in share price on the back of good
results and a benign hurricane season. The Company continued to take
significant profits on Healthcare Locums, but retains a meaningful exposure to
the stock.
Outlook
Although it is likely that the economy will remain weak for some years;
reflecting the length of time it will take for households and the government to
rebuild balance sheets; it will, nevertheless, be possible to generate good
returns from equities. In an environment where interest rates are likely to
remain low, reflecting the likely economic weakness; the attractions of leaving
cash in bank accounts is limited.
Furthermore, those companies which are able to demonstrate the ability to grow
in a low growth environment are likely to become more highly valued by the
market, reflecting the scarcity of that growth. Therefore, despite the weak
economic outlook, and the strong bounce back from the lows seen in the spring
of this year, I remain confident that the Company will continue to make
progress over the coming twelve months.
Cancellation of Share Premium and Capital Redemption Reserve
At the Extraordinary General Meeting held on 25 March 2009 shareholders
approved a special resolution to cancel the Company's share premium account and
capital redemption reserve. Following a successful application to the High
Court, the Company's share premium account and capital redemption reserve were
cancelled and transferred to the special reserve which is distributable.
VAT on Management Fees
I am pleased to report that following negotiations by the Manager with HMRC an
additional GBP553,000 of VAT and GBP283,000 of interest has been received by the
Company, and has been recognised in the period being reported on. Based on
shares in issue at the period end, this is the equivalent of 3.7p per share,
with 3.0p due to revenue. As this is a substantial amount in comparison to the
last two years' final dividends of 1.3p; the Board have resolved to declare a
special dividend of 3p to be paid on 22 December 2009, to shareholders on 27
November 2009.
New Borrowing Facility
The Board has agreed a new revolving credit facility for the Company with The
Bank of New York Mellon under which the Company may borrow up to a maximum of GBP
6 million for gearing purposes. The Company is not currently geared but it
remains the Board's policy that the Company may employ gearing in appropriate
circumstances.
John Sands
Chairman,
16 November 2009
Buyback, Redemption and Cancellation of Ordinary Shares of 25 pence each
Repurchase of Ordinary Shares
During the period under review, the Company bought back and cancelled 54,150
ordinary shares at an average price of 172.5p.
Redemption of Ordinary Shares
Following the reorganisation of the Company's share capital, shareholders of
ordinary shares have the opportunity to seek redemption of any or all of their
ordinary shares on a quarterly basis. During the period under review, ordinary
shares were redeemed and cancelled as follows:
Number of Price
Date Shares (Pence)
15 April 2009 971,073 175.63
15 July 2009 687,795 187.02
Since the period end, the Board resolved to redeem and cancel 640,715 ordinary
shares at a price of 239.98p per share and a discount of 3.4%.
Bank Loan Facility
During the six months under review, the Company has changed custodian to Bank
of New York Mellon and put in place a new bank loan facility with the new
custodian of GBP6 million. There were no drawings on this facility at the period
end.
Related Parties
Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco
Limited, acts as Manager and Secretary to the Company. Details of IAML's
services and fees arrangements are given in the 2009 annual financial report
which is available on the Company's website at www.invescoperpetual.co.uk/
investmenttrusts.
Principal Risks and Uncertainties
The principal risks and uncertainties that could affect the Company's business
can be divided into various areas:
* Market Movements and Portfolio Performance;
* Gearing;
* Redemption of Ordinary Shares; and
* Regulatory.
A detailed explanation of these principal risks and uncertainties can be found
on page 21 of the 2009 annual financial report, which is available on the
Company's website.
In the view of the Board, these principal risks and uncertainties are equally
applicable to the remaining six months of the financial year as they were to
the six months under review.
DIRECTORS' RESPONSIBILITY STATEMENT
In respect of the preparation of the half-yearly financial report
The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and International
Financial Reporting Standards.
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements contained within the half-yearly
financial report have been prepared
in accordance with the International Accounting Standard 34 Interim Financial
Reporting;
- the interim management report includes a fair review of the information
required by DTR 4.2.7R and DTR
4.2.8R of the FSA's Disclosure and Transparency Rules; and
- the interim management report includes a fair review of the information
required on related party transactions.
The half-yearly financial report has not been audited or reviewed by the
Company's auditors.
Signed on behalf of the Board of Directors.
John Sands
Chairman
16 November 2009
HUNDRED LARGEST HOLDINGS AT 30 SEPTEMBER 2009
Ordinary shares unless otherwise stated.
Market Market
Value Value Portfolio
Investment Sector GBP'000 GBP'000 %
Sterling Energy-AIM Oil & Gas Producers
- ordinary shares 1,315
- rights 203 1,518 2.8
Biocompatibles Healthcare Equipment & 1,330 2.5
Services
RWS-AIM Support Services 1,314 2.4
Just Retirement-AIM Life Insurance 1,290 2.4
H & T-AIM General Retailers 1,254 2.3
Esprit Capital Fund-UQ Venture Capital Partnership 1,016 1.9
Chemring Aerospace & Defence 950 1.8
Advanced Medical Healthcare Equipment & 941 1.8
Solutions-AIM Services
Hill & Smith Construction & Materials 936 1.7
Vectura Pharmaceuticals & 935 1.7
Biotechnology
IQE--AIM Technology Hardware & 876 1.6
Equipment
Penna Consulting Support Services 782 1.5
Renewable Energy-AIM Electricity 750 1.4
SDL Software & Computer Services 721 1.3
Novae Non-life Insurance 676 1.3
New Britain Palm Oil Food Producers 665 1.2
BATM Technology Hardware & 628 1.2
Equipment
Abcam-AIM Healthcare Equipment & 625 1.2
Services
BTG Pharmaceuticals & 618 1.1
Biotechnology
Mears Support Services 610 1.1
System C Healthcare-AIM Software & Computer Services 596 1.1
Synergy Health Healthcare Equipment & 590 1.1
Services
SQS Software-AIM Software & Computer Services 585 1.1
Avocet Mining-AIM Mining 584 1.1
Trading Emissions-AIM General Financial 575 1.1
Healthcare Locums-AIM Support Services 574 1.1
City Of London General Financial 560 1.0
Investment-AIM
Psion Technology Hardware & 559 1.0
Equipment
Augean-AIM Support Services 543 1.0
Proximagen Pharmaceuticals & 530 1.0
Neuroscience-AIM Biotechnology
Dignity General Retailers 523 1.0
Vitec Leisure Goods 509 0.9
Education Development General Retailers 508 0.9
International+
JKX Oil & Gas Oil & Gas Producers 500 0.9
Fairpoint-AIM General Financial 496 0.9
Innovision-AIM Electronic & Electrical 495 0.9
Equipment
Hilton Food Food Producers 493 0.9
Latchways Support Services 488 0.9
Euro Goldfields-AIM Mining 487 0.9
Mitie Support Services 481 0.9
Development Securities Real Estate 479 0.9
Wetherspoon (J.D.) Travel & Leisure 478 0.9
Telos-UQ Software & Computer Services
- Class `B' Common 211
- Series A2 Red Prf Npv 153 473 0.9
- Series A1 Red Prf Npv 109
IP General Financial 456 0.8
Pace Technology Hardware & 455 0.8
Equipment
Ark Therapeutics Pharmaceuticals & 454 0.8
Biotechnology
Talvivaara Mining Industrial Metals 436 0.8
Allergy Therapeutics-AIM Pharmaceuticals & 420 0.8
Biotechnology
Faroe Petroleum-AIM Oil & Gas Producers 418 0.8
RPC General Industrials 417 0.8
Regenersis-AIM Technology Hardware & 407 0.8
Equipment
Market Market
Value Value Portfolio
Investment Sector GBP'000 GBP'000 %
Robert Wiseman Food Producers 405 0.8
Paypoint Support Services 405 0.8
Island Gas Resources-AIM Electricity 405 0.8
Iofina-AIM Oil & Gas Producers 391 0.7
Halma Electronic & Electrical 391 0.7
Equipment
Hargreaves Service-AIM Industrial Transportation 375 0.7
Zenergy Power-AIM Electronic & Electrical 374 0.7
Equipment
Abbey Protection-AIM General Financial 359 0.7
Bowleven-AIM Oil & Gas Producers 354 0.7
Staffline-AIM Support Services 354 0.7
AEA Technology Support Services 353 0.7
Rurelec-AIM Electricity 347 0.6
Win-AIM Mobile Telecommunications 341 0.6
Prodesse Investment-AIM General Financial 340 0.6
VT Aerospace & Defence 338 0.6
Alexander Mining-AIM Mining 331 0.6
Fisher (J) & Sons Industrial Transportation 326 0.6
Wogen-AIM General Financial 324 0.6
Amino Technologies-AIM Technology Hardware & 317 0.6
Equipment
Ambrian Capital-AIM General Financial 314 0.6
Enterworks Software & Computer Services 310 0.6
Helical Bar Real Estate 300 0.6
Encore Oil-AIM Oil & Gas Producers 300 0.6
Shore Capital General Financial 300 0.6
Energetix-AIM Electronic & Electrical 300 0.6
Equipment
M.P. Evans-AIM Food Producers 297 0.6
Office2Office Support Services 296 0.6
CVS-AIM General Retailers 296 0.5
Smiths News Support Services 293 0.5
Sportingbet-AIM Travel & Leisure 278 0.5
Sepura Technology Hardware & 269 0.5
Equipment
Collins Stewart General Financial 264 0.5
Fidessa Software & Computer Services 263 0.5
Axis-Shield Pharmaceuticals & 261 0.5
Biotechnology
ANT-AIM Software & Computer Services 254 0.5
Morson-AIM Support Services 248 0.5
Hardy Underwriting Non-life Insurance 246 0.5
Inspired Gaming-AIM Travel & Leisure 242 0.5
Connaught Support Services 242 0.5
Oxford Catalysts-AIM Chemicals 240 0.4
Landkom International-AIM Food Producers 231 0.4
Cove Energy-AIM Mining 229 0.4
Research Now-AIM Media 228 0.4
Helius Energy -AIM Electricity 226 0.4
Cyan-AIM Technology Hardware & 226 0.4
Equipment
Norseman Gold-AIM Mining 225 0.4
Eaga Support Services 217 0.4
Altona Energy-AIM Oil & Gas Producers 215 0.4
Novera Energy -AIM Gas, Water & Multiutilities 214 0.4
Value of top 100 48,658 90.6
investments
Other investments 5,071 9.4
Total value of all 53,729 100.0
investments
UQ: Unquoted
AIM: Alternative Investment Market ("AIM")
CONDENSED STATEMENT OF COMPREHENSIVE CONSOLIDATED INCOME
Six Months to Six Months to Year to
30 September 2009 30 September 2008 31 March
2009
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains/(losses) on
investments held
at fair value - 15,833 15,833 - (19,236) (19,236) (38,152)
Income
UK dividends 543 - 543 802 - 802 1,173
Overseas dividends 61 - 61 128 - 128 155
Deposit interest - - - - - - -
Interest on VAT
recoverable on
management fees Note 283 - 283 - - - 355
2(b)
Underwriting and other 2 - 2 4 - 4 4
income
889 15,833 16,722 934 (19,236) (18,302) (36,465)
Operating costs
Investment management (100) (100) (200) (151) (151) (302) (466)
fee Note 2(a)
VAT recoverable on 382 171 553 - - - 1,956
management fees Note 2
(b)
Other expenses (198) (5) (203) (176) (5) (181) (357)
Profit/(loss) before
finance costs
and taxation 973 15,899 16,872 607 (19,392) (18,785) (35,332)
Finance costs Note 2 - - - (40) (40) (80) (110)
(a)
Profit/(loss) before 973 15,899 16,872 567 (19,432) (18,865) (35,442)
tax
Tax Note 3 (10) - (10) (14) - (14) (18)
Profit/(loss) after 963 15,899 16,862 553 (19,432) (18,879) (35,460)
tax
Return per ordinary 4.2p 69.0p 73.2p 2.0p (69.9)p (67.9)p (134.0)p
share Note 4
The total column of this statement represents the Group's profit and loss
account, prepared in accordance with International Financial Reporting
Standards. The supplementary revenue and capital columns are prepared in
accordance with the Statement of Recommended Practice published by the
Association of Investment Companies. All items in the above statement derive
from continuing operations and the Group has no other gains or losses. No
operations were acquired or discontinued in the period.
CONDENSED CONSOLIDATED BALANCE SHEET
Registered number 236895 At At At
30 31 March 30
September September
2009 2009 2008
GBP'000 GBP'000 GBP'000
Non-current assets
Investments held at fair value through
profit or loss 53,729 39,220 65,657
Current assets
Other receivables 179 2,566 284
Cash and cash equivalents 277 352 254
456 2,918 538
Total assets 54,185 42,138 66,195
Current liabilities
Other payables (535) (636) (731)
Bank loans - - (1,500)
(535) (636) (2,231)
Net assets 53,650 41,502 63,964
Issued capital and reserves
attributable to equity holders
Ordinary share capital 6,178 6,607 7,532
Share premium - note 8 - 17,825 17,825
Capital redemption reserve - note 8 172 15,447 14,522
Special reserve - note 8 32,243 - -
Capital reserve 6,217 (7,882) 14,237
Retained earnings 8,840 9,505 9,848
Total Shareholders' funds 53,650 41,502 63,964
Net asset value per ordinary
Share - note 6 237.8p 171.0p 232.8p
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
Six Months Six Months
to Year to to
30 September 31 March 30
September
2009 2009 2008
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Profit/(loss) before tax 16,872 (35,442) (18,865)
Taxation (10) (18) -
Adjustments for:
Purchase of investments (9,918) (19,742) (12,394)
Sales of investments 11,323 30,940 16,273
1,405 11,198 3,879
(Profits)/losses on investments (15,833) 38,152 19,236
Financing costs - 110 72
Operating cash flows before
movements in working capital 2,434 14,000 4,322
Decrease/(increase) in receivables 2,220 (2,094) 61
Decrease in payables (15) (87) (73)
Net cash from operating activities
before and after tax 4,639 11,819 4,310
Cash flows from financing activities
Bank loans repaid - (2,750) (1,250)
Shares redeemed/purchased (3,086) (8,746) (2,865)
Interest paid on borrowings - (110) (80)
Equity dividends - note 5 (1,628) (363) (363)
Net cash used in financing activities (4,714) (11,969) (4,558)
Net decrease in cash and cash
equivalents (75) (150) (248)
Cash and cash equivalents at the
beginning of the period 352 502 502
Cash and cash equivalents at
end of the period 277 352 254
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital
Share Share Redemption Special Capital Revenue Total
Capital Premium Reserve Reserve Reserve Reserve Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the year ended 31 March 2009
Shareholders' funds 7,915 17,825 14,139 - 36,534 9,658 86,071
at 31 March 2008
Profit/(loss) for - - - - (37,471) 2,011 (35,460)
the year
Ordinary shares (1,308) - 1,308 - (6,945) (1,801) (8,746)
cancelled
Dividend on ordinary - - - - - (363) (363)
shares
At 31 March 2009 6,607 17,825 15,447 - (7,882) 9,505 41,502
For the six months ended 30 September 2009
Profit for the - - - - 15,899 963 16,862
period
Creation of special - (17,825) (15,704) 33,529 - - -
reserve - note 8
Ordinary shares (429) - 429 (1,286) (1,800) - (3,086)
cancelled
Dividend on ordinary - - - - - (1,628) (1,628)
shares
At 30 September 2009 6,178 - 172 32,243 6,217 8,840 53,650
For the six months ended 30 September 2008
Shareholders' funds 7,915 17,825 14,139 - 36,534 9,658 86,071
at 31 March 2008
Profit/(loss) for - - - - (19,432) 553 (18,879)
the period
Ordinary shares (383) - 383 - (2,865) - (2,865)
cancelled
Dividend on ordinary - - - - - (363) (363)
shares
At 30 September 2008 7,532 17,825 14,522 - 14,237 9,848 63,964
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1(a) Accounting Standards and Policies
The condensed financial statements of the Group have been prepared using the
same accounting policies as those adopted in the 2009 annual financial report,
which are consistent with International Financial Reporting Standards (`IFRS'),
and Standing Interpretation Committee and International Financial Reporting
Interpretation Committee interpretations issued by International Accounting
Standards Board to the extent adopted by the EU.
(b) Changes to Presentation
IAS1 `Presentation of Financial Statements' affects the presentation of IFRS
financial statements and is effective for periods beginning on or after 1
January 2009. As a result, the income statement has been redesignated as the
statement of comprehensive income. There is no effect on either the net assets
or earnings of the Company.
2. Investment Management Fee and Finance Costs
(a) Allocation
Investment management fee and finance costs are allocated equally to revenue
and capital.
(b) VAT on Management Fees
As reported in the 2009 annual financial report, the Company recognised GBP
1,956,000 of VAT recoverable from HM Revenue & Customs for the period
2001-2007, together with GBP355,000 of interest. Following further negotiations
an additional amount of GBP553,000 was recovered by the Company in the six months
ended 30 September 2009; this was credited GBP382,000 to revenue and GBP171,000 to
capital, in the same proportion as orginally charged in the income statement.
An amount of GBP283,000 was also received for interest on the above amount and is
wholly credited to revenue. Based on 22,563,107 shares in issue at the period
end, this is the equivalent of 3.7p per share, with 3p due to revenue.
3. Taxation
Tax expense represents the sum of the tax currently payable and deferred tax.
Any tax payable is based on taxable profit for the period. The Company's
liability for current tax is calculated using tax rates that have been enacted
or substantially enacted by the balance sheet date. Any allocation of tax
relief to capital is based on the marginal basis.
4. Basis of Returns
Six months Six months Year
ended ended ended
30 30 September 31 March
September
2009 2008 2009
Returns after tax:
Revenue GBP963,000 GBP553,000 GBP2,011,000
Capital GBP GBP GBP
15,899,000 (19,432,000) (37,471,000)
Total return after tax GBP GBP GBP
16,862,000 (18,879,000) (35,460,000)
Weighted average number
of shares in issue during
the period 23,052,431 27,803,268 26,467,425
5. Dividends
The dividend paid for the year ended 31 March 2009 was 7p (GBP1,628,000)
comprising a final dividend of 1.3p (GBP303,000) and a special dividend in
respect of VAT recoverable on management fees of 5.7p. For the year ended 31
March 2008, the final dividend was 1.3p (GBP363,000).
A special dividend of 3p for the six months ended 30 September 2009 has been
declared by the Board in respect of refunds of VAT on management fees and
interest received. The Chairman's statement and note 2(b) gives further
information.
6. Net Asset Value - Basis of Calculation
Six months Six months To Year to
To
30 30 September 31 March
September
2009 2008 2009
Shareholders' funds GBP53,650,000 GBP63,964,000 GBP
41,502,000
Ordinary shares in issue at
period end 22,563,107 27,478,307 24,276,125
7. Movements in Share Capital
Six months Six months Year
ended ended ended
30 September 30 31 March
September
2009 2008 2009
Number of ordinary shares:
Brought forward 24,276,125 28,508,073 28,508,073
Redeemed and cancelled (1,658,868) (726,975) (3,859,907)
Bought back and cancelled (54,150) (302,791) (372,041)
Bought back into Treasury - - -
In issue at the period end 22,563,107 27,478,307 24,276,125
Number of Treasury shares:
Brought forward 2,100,000 3,100,000 3,100,000
Bought back and cancelled - (500,000) (1,000,000)
In issue at the period end 2,100,000 2,600,000 2,100,000
Average price of shares
redeemed and bought
back 180.1p 278.2p 206.5p
8. Cancellation of Share Premium and Capital Redemption Reserve
Following shareholder approval on 25 March 2009, the amounts standing to the
credit of the share premium of GBP17,825,000 and the capital redemption reserve
of GBP15,704,000 were cancelled and credited to a special reserve.
9. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust company
set out in section 842 of the Income and Corporation Taxes Act 1988.
10. The financial information contained in this half-yearly financial report,
which has not been audited or reviewed by the independent auditors, does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The financial information for the half years' ended 30 September 2009 and
30 September 2008 has not been audited. The figures and financial information
for the year ended 31 March 2009 are extracted and abridged from the latest
published accounts and do not constitute the statutory accounts for that year.
Those accounts have been delivered to the Registrar of Companies and included
the Report of the Independent Auditors, which was unqualified and did not
include a statement under section 498 of the Companies Act 2006.
By order of the Board
Invesco Asset Management Limited,
Secretary
16 November 2009
DIRECTORS, INVESTMENT MANAGER AND ADMINISTRATION
Directors
John Sands, Chairman
Alan Barber, Audit Committee Chairman
Dr. Gwyn Jones
James Cox
Sarah Bates
Manager, Company Secretary and Registered Office
Invesco Asset Management Limited
30 Finsbury Square
London EC2A 1AG
020 7065 4000
Company Secretarial contact: Chris Cordrey
Registered in England and Wales: No. 236895
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire HD8 0LA
If you hold your shares direct and not through either a Savings Scheme or ISA
and have queries relating to your shareholding you should contact the
Registrars on:
0871 664 0300
Calls cost 10p per minute plus network extras.
Shareholders can also access their holding details via Capita's website
www.capitaregistrars.com or www.capitashareportal.com
The registrars provide a telephone and an online share dealing service to
existing shareholders who are not seeking advice on buying or selling. This
service is available at www.capitadeal.com or telephone: 0871 664 0311.
Invesco Perpetual Customer Services
Invesco Perpetual has a Customer Services Team available to assist you from
8.30 a.m. to 6 p.m. each working day, on:
Telephone: 0800 085 8677
www.invescoperpetual.co.uk/investmenttrusts
Invesco Asset Management Limited
30 Finsbury Square
London EC2A 1AG
Telephone: 020 7065 4000
Invesco Asset Management Limited is a wholly owned subsidiary of
Invesco Limited and is authorised and regulated by
the Financial Services Authority
Invesco Perpetual is a business name of Invesco Asset Management Limited
END
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