A copy of the Company's Half Year
Report will shortly be available on the Company's website
(https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd),
on the National Storage Mechanism (https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
and will also be provided to those shareholders who have requested
a printed or electronic copy.
CQS NEW CITY HIGH YIELD FUND
LIMITED
Interim
Results Announcement
for the six months ended 31 December
2023
Statement from the Chair
Key
Points
· NAV total return of 9.42% for the six months ended 31 December
2023
· Ordinary share price total return of 11.26%
· Dividend yield of 9.13%, based on dividends at an annualised
rate of 4.49p and a share price of 49.20p at 31 December
2023
· Ordinary share price at a premium of 3.58% at 31 December
2023
· £4,014,000 of equity raised
NAV
and share price performance
I am pleased to report on a good six
months for your Company, with the period ended 31 December 2023
covered by this interim report seeing positive total returns from
both the NAV and share price at 9.42% and 11.26% respectively. The
shares of the Company have continued to trade at a premium to their
NAV and as at 31 December 2023, the premium stood at
3.58%.
Stock markets were stronger into the
year-end as markets shrugged off geo-political worries arising from
the conflicts in Ukraine and Israel/Gaza and, with inflation
continuing to ease, focused on potential interest rate cuts. The
Sterling debt market also responded to this environment and the
10-year gilt yield came down sharply from its August 2023 highs,
reaching 3.50% at year-end, a number which does suggest interest
rates falling at some stage in 2024. Ian "Franco" Francis, your
investment manager, discusses the six months in more detail in his
review below.
Earnings and dividends
The Company's revenue earnings per
share were 2.18p for the six months, compared to a figure of 2.27p
earned in the same period last year. As explained in the Investment
Manager's Review, this modest decline is a result of timing of
dividends received. Otherwise, the revenue account is fairly stable
as portfolio income has continued to benefit from higher interest
rates.
The Company has declared two
dividends of 1.00p so far in this financial period, maintaining the
level of those declared in the same period last year. As things
stand, the Board expects to follow the same pattern of dividend
payments as declared last year and maintain or slightly increase
the total level of dividends for the year. Based on an annual
dividend rate of 4.49p and a share price of 49.80p at the time of
writing, this represents a dividend yield of 9.02%. The Board
anticipates that revenue earnings per share for the whole year will
cover the total dividend. The Board is very focused on dividend
payments which we know are important to our Shareholders and since
its launch in 2007, the level of dividends paid by the Company has
increased every year.
Gearing
The Company has a £45,000,000 loan
facility with The Bank of Nova Scotia ("Scotiabank") which renewed
in December 2023 for a further 12-month period. Of this facility,
£35,000,000 was drawn down as at 31 December 2023 and the Company
had an effective gearing rate of 12.76%.
Share issuance
The investment company sector has
come under pressure in 2023 and most companies are trading at a
discount to their NAV, but your Company is one of the few that has
continued to trade at a premium. Taking advantage of the ability to
issue new shares at a premium, £4,014,000 was raised from new and
existing shareholders during the six months under review, with
8,250,000 ordinary shares issued from the block listing facility. A
further £2,007,000 has been raised since 31 December 2023. Not many
investment companies are currently in a position to be able to
issue shares and this is another indicator of the attraction of
your Company.
Parent company
During the period under review, CQS
(UK) LLP, your Company's Investment Manager, has advised that it is
being acquired by Manulife Investment Management and the
transaction is expected to close in early 2024. The Board's
understanding is that this will not have an impact on your Company
for the time being and we will continue to request and monitor
information on any changes that do happen.
Outlook
With the peak in UK inflation and
interest rates almost certainly behind us for now, the macro
environment for fixed interest investments looks a little calmer
than in recent years. Nevertheless, the economy is not in
robust health so ongoing scrutiny of issuers' balance sheets
remains vital for the high yield bonds which make up the majority
of your company's investments. The turbulent geopolitical backdrop
also warrants attention, as do a number of significant elections in
2024, with the resurgence of Donald Trump in the USA and a swing to
a Labour government in the UK both looking like real possibilities.
Plenty for your investment manager 'Franco' to consider. As always,
the broad diversification of the company's investments provides
reassurance and the Board is confident we will continue to be able
to pay attractive dividends to shareholders.
Caroline Hitch
Chair
28
February 2024
Investment Manager's Review
Market and economic review
Away from the geopolitical issues
that have dominated the headlines, the six-month period from 30
June 2023 to 31 December 2023 was reasonably positive for the high
yield market in which the Company invests. Interest rates appear to
have reached their peak and inflation in the UK and other western
economies has fallen substantially from the double-digit figures
seen earlier in 2023. The UK has entered a technical recession with
the economy contracting by 0.40% in the second half of 2023. We
believe that the risk of a severe recession in the UK has receded
slightly.
At the end of June 2023, the UK
Consumer Price Index reading was an annual increase of 6.80% and by
the end of December 2023, this had fallen to 4.00%. There was a
similar pattern in other major economies such as the United States
("US") and the European Union ("EU"). Interest rates have not
increased in major economies for several months and although there
are market commentators calling for interest rates to fall, we
believe that central banks will be fairly cautious and will wait to
see where inflation settles before reducing rates.
UK 10-year gilts reached a 15 year
high at 4.75% in August 2023 over worries about a severe recession
and the continuing effects of higher interest rates. As the year
progressed, the 10-year gilt yield fell substantially and ended the
year at 3.54%.
In the US, the economy appears to be
proving more resilient and the service sector has been a positive
contributor to the US economy. US inflation is around 2.00% and all
eyes are on the timing of a first interest rate cut. The EU is not
in such a good position, as manufacturing is contracting
substantially in Germany and France, but any lowering of interest
rates, as a policy response, could lead to inflation rising
again.
For your Company, we had a good
outcome with the underlying NAV rising from 45.83p at the end of
June 2023 to 47.50p at the end of December 2023. With the inclusion
of dividends paid, the total net asset return for the six months
ended 31 December 2023 was 9.42%.
Portfolio review
During the six months ended 31
December 2023, we were able to continue to refinance existing bond
holdings at higher coupon rates than we have done previously. Good
examples of this are Co-operative 9.5% 2029, which was redeemed and
replaced with Co-operative 11.25% 2034, and Azerion 7.25% 2024
which was redeemed and replaced with Azerion 10.625% 2026. A new
entry into the Top 10 is TVL Finance, which is part of the hotel
group, Travelodge and we have been buying the 10.25% 2028. The
portfolio continues to be well diversified across a range of
sectors as well as interest rates with a good proportion in
floating rate notes. The non-sterling exposure was 28.31% of the
portfolio as at 31 December 2023, out of which 15.55% was the US
Dollar.
For the six months ended 31 December
2023, the revenue account earnings were 2.18p compared to 2.27p for
the same period last year. Earnings per ordinary share were
slightly lower than last year mainly because the half yearly
dividend and repayment of historic arrears from the REA preference
shares we hold, were deferred from December 2023 to April 2024. In
my regular discussions with Shareholders, revenue and dividends are
topics of crucial importance and the ability of any portfolio
company to pay its coupon or expected dividend is one of the major
indicators we follow.
Outlook
With the UK going into recession in
the second half of 2023 and inflation still sticky, the Bank of
England faces a dilemma of when to reduce interest rates. This is
now more likely to be slightly sooner than the more pessimistic
forecasts of late 2024 and could feasibly happen at the end of the
second quarter. In Europe, the economy overall is weak and add this
to European Parliament elections in early June, it is possible that
rates here too may start the downward trend earlier rather than
later. Geopolitics with the wars in Ukraine and Gaza, and the Houti
rebels' attacks on shipping will also impact global markets and
supply chains with shipping being rerouted around the Cape rather
than through the Suez canal. Overall, a lot going on which might
impact markets, but the net result is probably less negative for
the Western economies than in previous years.
Ian
"Franco" Francis
New
City Investment Managers
28
February 2024
Directors' Statements
Directors' Statement of Principal Risks and
Uncertainties
When considering the total return of
the Company, the Directors take account of the risk which has been
taken in order to achieve that return. The Directors have carried
out a robust assessment of the principal risks and mitigating
factors facing the Company including those which would threaten its
business model, future performance, solvency or liquidity. The
following risk factors have been identified and are listed
below:
• Dividend
and earnings risk
• Market
risk leading to a loss of share value
• Key person
risk
• Gearing risk
• Geopolitical risk
• Operational risk
• Regulatory risk
• Cyber risk
• Market demand
Information on these risks and how
they are managed is given in the Annual Report and Financial
Statements for the year ended 30 June 2023. In the view of the
Board, these principal risks and uncertainties are as applicable to
the remaining six months of the current financial year as they were
in the six months under review.
Directors' Responsibility Statement in respect of the Interim
Report
We confirm that to the best of our
knowledge:
• the unaudited condensed financial
statements within the Interim Report have been prepared in
accordance with International Accounting Standard ("IAS") 34 -
Interim Financial Reporting, as adopted by the EU and give a true
and fair view of the assets, liabilities, financial position and
profit or loss of the Company as at 31 December 2023, as required
by the Financial Conduct Authority's ("FCA") Disclosure Guidance
and Transparency Rule ("DTR") 4.2.4R.
• the Statement from the Chair,
Investment Manager's Review and the condensed financial statements
include a fair review of the information required by DTR 4.2.7R,
being an indication of important events that have occurred during
the first six months ended 31 December 2023 and their impact on the
unaudited condensed financial statements;
• the Directors' Statement of
Principal Risks and Uncertainties shown above is a fair review of
the information required by DTR 4.2.7R; and
• the condensed set of financial
statements include a fair review of the information required by DTR
4.2.8R, being related party transactions that have taken place
during the six months ended 31 December 2023 and that have
materially affected the financial position or performance of the
Company during that period.
Signed on behalf of the Board
Caroline Hitch
Chair
28
February 2024
Condensed Financial
Statements
Condensed Statement of Comprehensive Income
For
the six months ended 31 December 2023 (Unaudited)
|
Notes
|
Revenue
£'000
|
Capital
£'000
|
Total
£'000
|
Net
capital gains
|
|
|
|
|
Gains on
financial assets at fair value
|
8
|
-
|
10,812
|
10,812
|
Foreign exchange
gain1
|
|
-
|
40
|
40
|
Revenue
|
|
|
|
|
Investment income
|
3
|
13,754
|
-
|
13,754
|
Total income
|
|
13,754
|
10,852
|
24,606
|
|
|
|
|
|
Expenses
|
|
|
|
|
Investment management fee
|
4
|
(804)
|
(268)
|
(1,072)
|
Other expenses
|
5
|
(481)
|
(12)
|
(493)
|
Total expenses
|
|
(1,285)
|
(280)
|
(1,565)
|
Profit before finance income/(costs) and
taxation
|
|
12,469
|
10,572
|
23,041
|
Finance income/(costs)
|
|
|
|
|
Interest income
|
|
107
|
-
|
107
|
Interest expense
|
6
|
(882)
|
(294)
|
(1,176)
|
Profit before taxation
|
|
11,694
|
10,278
|
21,972
|
Irrecoverable withholding
tax
|
|
(215)
|
-
|
(215)
|
Profit after taxation and total comprehensive
income
|
|
11,479
|
10,278
|
21,757
|
Basic and diluted earnings per ordinary share
(pence)
|
7
|
2.18p
|
1.95p
|
4.13p
|
For the six months ended 31
December 2022 (Unaudited)
|
Notes
|
Revenue
£'000
|
Capital
£'000
|
Total
£'000
|
Net
capital losses
|
|
|
|
|
Losses on
financial assets at fair value
|
8
|
-
|
(3,301)
|
(3,301)
|
Foreign exchange
loss1
|
|
-
|
(163)
|
(163)
|
Revenue
|
|
|
|
|
Investment income
|
3
|
12,764
|
-
|
12,764
|
Total income
|
|
12,764
|
(3,464)
|
9,300
|
|
|
|
|
|
Expenses
|
|
|
|
|
Investment management fee
|
4
|
(787)
|
(261)
|
(1,048)
|
Other expenses
|
5
|
(386)
|
(50)
|
(436)
|
Total expenses
|
|
(1,173)
|
(311)
|
(1,484)
|
Profit/(loss) before finance income/(costs) and
taxation
|
|
11,591
|
(3,775)
|
7,816
|
Finance income/(costs)
|
|
|
|
|
Interest income
|
|
38
|
-
|
38
|
Interest expense
|
6
|
(450)
|
(150)
|
(600)
|
Profit/(loss) before taxation
|
|
11,179
|
(3,925)
|
7,254
|
Irrecoverable withholding
tax
|
|
(197)
|
-
|
(197)
|
Profit/(loss) after taxation and total comprehensive
income/(loss)
|
|
10,982
|
(3,925)
|
7,057
|
Basic and diluted earnings/(losses) per ordinary share
(pence)
|
7
|
2.27p
|
(0.81)p
|
1.46p
|
For the year ended 30 June 2023
(Audited)
|
Notes
|
Revenue
£'000
|
Capital
£'000
|
Total
£'000
|
Net
capital losses
|
|
|
|
|
Losses on
financial assets at fair value
|
8
|
-
|
(17,988)
|
(17,988)
|
Foreign exchange
loss1
|
|
-
|
(252)
|
(252)
|
Revenue
|
|
|
|
|
Investment income
|
3
|
26,229
|
-
|
26,229
|
Total income
|
|
26,229
|
(18,240)
|
7,989
|
|
|
|
|
|
Expenses
|
|
|
|
|
Investment management fee
|
4
|
(1,591)
|
(530)
|
(2,121)
|
Other expenses
|
5
|
(647)
|
(89)
|
(736)
|
Total expenses
|
|
(2,238)
|
(619)
|
(2,857)
|
Profit/(loss) before finance income/(costs) and
taxation
|
|
23,991
|
(18,859)
|
5,132
|
Finance income/(costs)
|
|
|
|
|
Interest income
|
|
124
|
-
|
124
|
Interest expense
|
6
|
(1,167)
|
(389)
|
(1,556)
|
Profit/(loss) before taxation
|
|
22,948
|
(19,248)
|
3,700
|
Irrecoverable withholding
tax
|
|
(505)
|
-
|
(505)
|
Profit/(loss) after taxation and total comprehensive
income/(loss)
|
|
22,443
|
(19,248)
|
3,195
|
Basic and diluted earnings/(losses) per ordinary share
(pence)
|
7
|
4.51p
|
(3.87)p
|
0.64p
|
1Excludes foreign exchange gains and losses on financial assets
at fair value through profit and loss, which are presented within
'gains/(losses) on financial assets at fair value'.
The total column of this statement
represents the Company's Condensed Statement of Comprehensive
Income, prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the EU (refer to note
2.1). The supplementary revenue return and capital return columns
are both prepared under guidance published by the Association of
Investment Companies ("AIC").
There is no other comprehensive
income as all income is recorded in the Condensed Statement of
Comprehensive Income above.
All revenue and capital items in the
above statement are derived from continuing operations.
No operations were acquired or
discontinued during the period.
The accompanying notes below are an
integral part of these condensed financial statements.
Condensed Statement of Financial Position
As at 31 December 2023
|
Notes
|
As at 31 December
2023
(Unaudited)
£'000
|
As at 31 December
2022
(Unaudited)
£'000
|
As at 30 June
2023
(Audited)
£'000
|
Non-current assets
|
|
|
|
|
Financial assets at fair value
through profit or loss
|
8
|
281,647
|
263,811
|
266,011
|
Current assets
|
|
|
|
|
Debtors and other
receivables
|
|
5,023
|
5,818
|
7,010
|
Cash and cash equivalents
|
|
2,696
|
2,781
|
6,597
|
|
|
7,719
|
8,599
|
13,607
|
Total assets
|
|
289,366
|
272,410
|
279,618
|
Current liabilities
|
|
|
|
|
Bank loan
|
6
|
(35,000)
|
(33,000)
|
(35,000)
|
Creditors and other
payables
|
|
(1,244)
|
(517)
|
(4,187)
|
Total liabilities
|
|
(36,244)
|
(33,517)
|
(39,187)
|
Net
asset value
|
|
253,122
|
238,893
|
240,431
|
Stated capital and reserves
|
|
|
|
|
Stated capital account
|
9
|
248,898
|
229,368
|
244,884
|
Special distributable
reserve
|
|
50,385
|
50,385
|
50,385
|
Capital reserve
|
|
(60,580)
|
(55,535)
|
(70,858)
|
Revenue reserve
|
|
14,419
|
14,675
|
16,020
|
Equity Shareholders' funds
|
|
253,122
|
238,893
|
240,431
|
Net
asset per ordinary share (pence)
|
10
|
47.50p
|
48.39p
|
45.83p
|
The condensed financial statements
were approved by the Board of Directors and authorised for issue on
28 February 2024 and were signed on its behalf by:
Caroline Hitch
Chair
The accompanying notes below are an
integral part of these condensed financial statements.
Condensed Statement of Changes in Equity
For the six months ended 31 December
2023 (Unaudited)
|
Notes
|
Stated capital
account1
£'000
|
Special distributable
reserve2
£'000
|
Capital
reserve1
£'000
|
Revenue
reserve3
£'000
|
Total
£'000
|
At 1 July 2023
|
|
244,884
|
50,385
|
(70,858)
|
16,020
|
240,431
|
Total comprehensive income for the period:
|
|
|
|
|
|
|
Profit for the period
|
|
-
|
-
|
10,278
|
11,479
|
21,757
|
Transactions with owners recognised directly in
equity:
|
|
|
|
|
|
|
Dividends paid
|
11
|
-
|
-
|
-
|
(13,080)
|
(13,080)
|
Net proceeds from issue of ordinary
shares
|
9
|
4,014
|
-
|
-
|
-
|
4,014
|
At
31 December 2023
|
|
248,898
|
50,385
|
(60,580)
|
14,419
|
253,122
|
For the six months ended 31 December
2022 (Unaudited)
|
Notes
|
Stated capital
account1
£'000
|
Special distributable
reserve2
£'000
|
Capital
reserve1
£'000
|
Revenue
reserve3
£'000
|
Total
£'000
|
At 1 July 2022
|
|
220,649
|
50,385
|
(51,610)
|
15,562
|
234,986
|
Total comprehensive income for the period:
|
|
|
|
|
|
|
Profit/(loss) for the
period
|
|
-
|
-
|
(3,925)
|
10,982
|
7,057
|
Transactions with owners recognised directly in
equity:
|
|
|
|
|
|
|
Dividends paid
|
11
|
-
|
-
|
-
|
(11,869)
|
(11,869)
|
Net proceeds from issue of ordinary
shares
|
|
8,719
|
-
|
-
|
-
|
8,719
|
At
31 December 2022
|
|
229,368
|
50,385
|
(55,535)
|
14,675
|
238,893
|
For the year ended 30 June 2023
(Audited)
|
Notes
|
Stated capital
account1
£'000
|
Special distributable
reserve2
£'000
|
Capital
reserve1
£'000
|
Revenue
reserve3
£'000
|
Total
£'000
|
At 1 July 2022
|
|
220,649
|
50,385
|
(51,610)
|
15,562
|
234,986
|
Total comprehensive income for the year:
|
|
|
|
|
|
|
Profit/(loss) for the
year
|
|
-
|
-
|
(19,248)
|
22,443
|
3,195
|
Transactions with owners recognised directly in
equity:
|
|
|
|
|
|
|
Dividends paid
|
11
|
-
|
-
|
-
|
(21,985)
|
(21,985)
|
Net proceeds from issue of ordinary
shares
|
|
24,235
|
-
|
-
|
-
|
24,235
|
At
30 June 2023
|
|
244,884
|
50,385
|
(70,858)
|
16,020
|
240,431
|
1 Following a change in Companies (Jersey) Law 1991 effective 27
June 2008, dividends can be paid out of any capital account of the
Company subject to certain solvency restrictions. However, it is
the Company's policy to account for revenue items and pay
dividends, drawing where necessary from a separate revenue
reserve.
2 The balance on the special distributable reserve of
£50,385,000 (as at 31 December 2022: £50,385,000; as at 30 June
2023: £50,385,000) is treated as distributable profits available to
be used for all purposes permitted by Jersey Company Law including
the buying back of ordinary shares, the payment of dividends and
the payment of preliminary expenses.
3 The balance on the revenue reserve of £14,419,000 (as at 31
December 2022: £14,675,000; as at 30 June 2023: £16,020,000) is
also available for paying dividends.
The accompanying notes below are an
integral part of these condensed financial statements.
Condensed Cash Flow
Statement
For the six months ended 31 December
2023
|
Notes
|
Six months ended
31 December 2023
(Unaudited)
£'000
|
Six months ended
31 December 2022
(Unaudited)
£'000
|
Year ended
30 June 2023
(Audited)
£'000
|
Operating activities
|
|
|
|
|
Profit before
taxation1
|
|
21,972
|
7,254
|
3,700
|
|
|
|
|
|
Adjustments to reconcile profit
before taxation to net cash flows:
|
|
|
|
|
Realised (gains)/losses on financial
assets at fair value through profit or loss
|
8
|
(2,240)
|
(5,131)
|
1,273
|
Unrealised (gains)/losses on
financial assets at fair value through profit or loss
|
8
|
(8,572)
|
8,432
|
16,715
|
Effective interest
adjustment
|
8
|
(193)
|
(121)
|
(243)
|
Foreign exchange
(gain)/loss
|
|
(40)
|
163
|
252
|
Finance
costs1
|
|
1,069
|
562
|
1,432
|
|
|
|
|
|
Purchase of financial assets at fair
value through profit or loss2
|
|
(53,464)
|
(41,403)
|
(77,242)
|
Proceeds from sale of financial
assets at fair value through profit or loss3
|
|
48,829
|
37,192
|
57,170
|
|
|
|
|
|
Changes in working capital
|
|
|
|
|
Decrease/(increase) in debtors and
other receivables
|
|
1,987
|
(1,998)
|
(3,191)
|
(Decrease)/increase in creditors and
other payables
|
|
(2,931)
|
(2,097)
|
657
|
Irrecoverable withholding tax
paid
|
|
(215)
|
(197)
|
(505)
|
Net
cash generated from operating activities
|
|
6,202
|
2,656
|
18
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Dividends paid
|
11
|
(13,080)
|
(11,869)
|
(21,985)
|
Drawdown of bank loan
|
6
|
-
|
-
|
2,000
|
Finance costs
|
|
(1,077)
|
(547)
|
(1,404)
|
Net proceeds from issuance of
ordinary shares4
|
9
|
4,014
|
8,719
|
24,235
|
Net
cash (used in)/generated from financing
activities
|
|
(10,143)
|
(3,697)
|
2,846
|
|
|
|
|
|
(Decrease)/increase in cash and cash
equivalents
|
|
(3,941)
|
(1,041)
|
2,864
|
Cash and cash equivalents at the
start of the period/year
|
|
6,597
|
3,985
|
3,985
|
Exchange gain/(loss)
|
|
40
|
(163)
|
(252)
|
Cash and cash equivalents at the end of the
period/year
|
|
2,696
|
2,781
|
6,597
|
1 For the comparative period, six months ended 31 December 2022,
in accordance with IAS 7 Statement of Cash Flows, the Cash Flow
Statement has been re-presented to start with 'profit before
taxation' of £7,254,000 instead of 'profit before finance
income/costs and taxation' of £7,816,000. Subsequently, 'finance
costs' of £562,000 have been added under 'Adjustments to reconcile
profit before taxation to net cash flows'.
Included within 'profit before
taxation' is dividend income of £2,458,000 (six months ended 31
December 2022: £2,507,000; year ended 30 June 2023: £4,964,000) and
interest income of £11,296,000 (six months ended 31 December 2022:
£10,257,000; year ended 30 June 2023: £21,265,000).
2 Amounts due to brokers as at 31 December 2023 relating to
purchases of financial assets at fair value through profit amounted
to £900,000 (as at 31 December 2022: £nil; as at 30 June 2023:
£904,000).
3 Amounts due from brokers as at 31 December 2023 relating to
sales of financial assets at fair value through profit amounted to
£nil (as at 31 December 2022: £nil; as at 30 June 2023:
£nil).
4 Amounts due on new share issuance not yet received as at 31
December 2023 amounted to £nil (as at 31 December 2022: £nil; as at
30 June 2023: £nil).
The accompanying notes below are an
integral part of these condensed financial statements.
Notes to the Condensed Financial Statements
1 General
information
The Company is a closed-ended
investment company and was incorporated with limited liability in
Jersey under the Companies (Jersey) Law 1991 on 17 January 2007,
with registered number 95691. The Company's ordinary shares are
listed on the Official List as maintained by the FCA and admitted
to trading on the Main Market of the London Stock Exchange on 7
March 2007.
The Company's registered address is
IFC1, The Esplanade, St Helier, Jersey, JE1 4BP.
2 Accounting
policies
2.1 Basis of accounting
The Annual Report and Financial
Statements are prepared in accordance with the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority and with
International Financial Reporting Standards
("IFRS") as adopted by the European Union
which comprise standards and interpretations
approved by the International Accounting Standards Board, and
interpretations issued by the International Financial Reporting
Standards and Standing Interpretations Committee as approved by the
International Accounting Standards Committee which remain in
effect. The Annual Report and Financial Statements are also
prepared in accordance with the guidance set out in the Statement
of Recommended Practice: Financial Statements of Investment Trust
Companies and Venture Capital Trusts issued by the Association of
Investment Companies (the "AIC SORP") updated most recently in July
2022 with consequential amendments where this does not conflict
with IFRS. The Interim Report has been prepared in accordance with
International Accounting Standards ("IAS") 34 - Interim Financial
Reporting ("IAS 34") as adopted by the European Union. They have
also been prepared using the same accounting policies applied for
the year ended 30 June 2023 Annual Report and Financial Statements,
which was prepared in accordance with IFRS, except for any new
standards and interpretations applicable to the Company during the
six-month period under review.
Standards and amendments to existing standards effective in
the current period:
The following new standards,
amendments and interpretations to existing standards have been
issued and are effective in the current period and
the Directors believe that the application of
these amendments and interpretations do not significantly impact
the Company's condensed financial statements:
Standards
|
Effective for periods
beginning on or after
|
·
IFRS 17 Insurance Contracts
|
1 January
2023
|
·
Disclosure of Accounting Policies - Amendments to
IAS 1 and IFRS Practice Statement 2
|
1 January
2023
|
·
Definition of Accounting Estimates - Amendments to
IAS 8
|
1 January
2023
|
·
Deferred Tax related to Assets and Liabilities
arising from a Single Transaction - Amendments to IAS 12
|
1 January
2023
|
·
International Tax Reform-Pillar Two Model Rules -
Amendments to IAS 12
|
27 May
2023
|
Standards, amendments and interpretations issued but not yet
effective
The following standards, amendments
and interpretations to existing standards become effective in
future accounting periods and have not been early adopted by the
Company, as the Directors believe that
these amendments are not relevant to the Company's
operations:
Standards
|
Effective for periods
beginning on or after
|
·
Non-current Liabilities with Covenants
and Classification of Liabilities as Current or Non-current -
Amendments to IAS 1
|
1 January
2024
|
·
Lease Liability in a Sale and Leaseback -
Amendments to IFRS 16
|
1 January
2024
|
·
Supplier Finance Arrangements - Amendments to IAS
7 and IFRS 7
|
1 January
2024
|
·
IFRS S1** General Requirements for Disclosure of
Sustainability-related Financial Information and IFRS S2**
Climate-related Disclosures
|
1 January
2024
|
·
Lack of Exchangeability - Amendments to IAS
21
|
1 January
2025
|
·
Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture - Amendments to IFRS 10 and IAS
28
|
Optional
|
2.2
Going concern
The condensed financial statements
have been prepared on the going concern basis. In assessing the
going concern basis of accounting, the Directors have had regard to
the guidance issued by the Financial Reporting Council. The
Company's existing loan facility as detailed in Note 6 is due to
expire on 18 December 2024 after which it is anticipated the
Company will take out a new facility on comparable terms. After
making enquiries with the Investment Manager and having considered
the Company's investment objective, nature of the investment
portfolio, loan facility, expenditure projections and the impact of
the current geo-political and market uncertainty, the Directors
consider that the Company has adequate resources to continue in
operational existence for the foreseeable future. For this reason,
the Directors continue to adopt the going concern basis in
preparing the interim financial statements.
2.3
Segmental reporting
The Company holds a wide variety of
different investments in a wide range of issues locating in
different geographies and operating in different sectors. However,
resources are allocated and the business is managed by the
Directors on an aggregated basis. Strategic and financial
management decisions are determined centrally by the Directors and
on this basis, the Company operates as a single investment
management business and no segmental reporting is
provided.
2.4
Seasonality
The Company's business is not
subject to seasonal fluctuations.
3
Investment income
|
Six months
ended
31 December 2023
(Unaudited)
£'000
|
Six months
ended
31 December 2022
(Unaudited)
£'000
|
Year
ended
30 June
2023
(Audited)
£'000
|
Income from financial assets at fair value through profit or
loss1
|
|
|
|
Dividend income
|
2,458
|
2,507
|
4,964
|
Interest on fixed income
securities2
|
11,296
|
10,257
|
21,265
|
Total income
|
13,754
|
12,764
|
26,229
|
1 All investment income arises from financial assets valued at
fair value through profit or loss.
2 Fixed income securities include fixed and floating rate
securities, convertible securities and preference
shares.
4 Investment management
fee
The Company's investment manager is
CQS (UK) LLP.
As per the Investment Management
Agreement dated 18 September 2019, the management fee is charged at
a rate of 0.80% per annum on the Company's total assets (being
total assets less current liabilities, other than bank borrowings
and ignoring any taxation which is or may be payable by the
Company) up to £200,000,000, 0.7% per annum of Assets in excess of
£200,000,000 and up to and including £300,000,000 and 0.60% per
annum thereafter. The management fee is
paid monthly in
arrears.
The contract between the Company and
CQS (UK) LLP may be terminated by either party giving not less than
12 months' notice of
termination.
During the six months ended 31
December 2023, investment management fees of £1,072,000 were
incurred (six months ended 31 December 2022: £1,048,000; year ended
30 June 2023: £2,121,000), of which £174,000 was payable at the
period end (as at 31 December 2022: £343,000; as at 30 June 2023:
£176,000). Investment management fees have been allocated 75% to
revenue and 25% to capital.
5
Other expenses
During the six months ended 31
December 2023, the Company's other expenses were £493,000 (six
months ended 31 December 2022: £436,000; year ended 30 June 2023:
£736,000).
Secretarial and administration fees
Secretarial and administration fees
were £104,000 during the six months ended 31 December 2023 (six
months ended 31 December 2022: £102,000; year ended 30 June 2023:
£206,000).
Directors' fees
The Directors' yearly remuneration,
effective from 1 July 2023, is as follows:
Chair
£45,000
Audit Chair
£39,000
Other
£32,500
The Board has not approved any
change in remuneration during the six months ended 31 December
2023.
Directors fees for the six months
ended 31 December 2023 were £91,000 (six months ended 31 December
2022: £85,000; year ended 30 June 2023: £169,000).
Audit fees and non-audit fees paid to the
auditor
Audit fees incurred for the six
months under review were £25,000 (six months ended 31 December
2022: £25,000; year ended 30 June 2023: £51,000).
There were no non-audit fees paid to
the auditor during the six months ended 31 December 2023 (six
months ended 31 December 2022: £nil; year ended 30 June 2023:
£nil)
6 Bank loan and interest
expense
|
Six months
ended
31 December 2023
(Unaudited)
£'000
|
Six months
ended
31
December 2022
(Unaudited)
£'000
|
Year
ended
30 June
2023
(Audited)
£'000
|
Bank loan facility - opening
balance
|
35,000
|
33,000
|
33,000
|
Drawdown
|
-
|
-
|
2,000
|
Bank loan facility - closing balance
|
35,000
|
33,000
|
35,000
|
The Company had a short-term
unsecured loan facility with Scotiabank up to a limit of
£45,000,000 which expired on 17 December 2023. On 20 December 2023,
the Company entered into an Amendment and Restatement Agreement
with Scotiabank to renew the loan facility, under the following
terms:
• the
Agreement contains an option to increase the facility by a further
£5,000,000 - no commitment fees are payable on the £5,000,000 until
this option is exercised;
• the loan
facility is due to expire on 18 December 2024;
• the
interest on the loan is a margin of 2.00% per annum plus the daily
non-cumulative compounded Reference Rate (RFR); and
•
the commitment fees payable is 0.675% per annum on
the daily available commitment.
As at 31 December 2023, the drawn
down amount of the facility was £35,000,000 (as at 31 December
2023: £33,000,000; as at 30 June 2023: £35,000,000).
During the six months ended 31
December 2023 and up until the date of this report, the Company has
complied with all covenants of the loan facility which are as
follows:
• the
borrower shall not permit the adjusted asset coverage to be less
than 4 to 1;
• the
borrower shall not permit the NAV to be less than £95,000,000 at
any time; and
• the
borrower shall maintain an additional adjusted asset coverage of at
least 1.5 to 1 at all times.
During the period, the Company
incurred interest expense of £1,176,000 (six months ended 31
December 2022: £600,000; year ended 30 June 2023:
£1,556,000).
7 Basic and diluted
earnings/(losses) per ordinary share
|
Revenue
|
Capital
|
Total
|
for
the six months ended 31 December 2023
|
2.18p
|
1.95p
|
4.13p
|
for the six months ended 31 December
2022
|
2.27p
|
(0.81)p
|
1.46p
|
for the year ended 30 June
2023
|
4.51p
|
(3.87)p
|
0.64p
|
The revenue earnings per ordinary
share is based on the net profit after taxation of £11,479,000 (six
months ended 31 December 2022: £10,982,000; year ended 30 June
2023: £22,443,000) and the capital return per ordinary share is
based on a net capital gain of £10,278,000 (six months ended 31 December 2022: net capital loss of
£3,925,000; year ended 30 June 2023: net capital loss of
£19,248,000). Both the revenue earning and capital return per
ordinary share are based on a weighted
average of 526,645,336 (six months ended 31 December 2022:
483,222,238; year ended 30 June 2023: 497,695,146) ordinary shares
in issue throughout the period.
There have been no transactions
involving the Company's ordinary shares between 31 December 2023
and 28 February 2024 other than those disclosed in note
13.
8 Financial assets at fair value
through profit or loss
All financial assets are valued at
fair value through profit or loss. Gains or losses arising from
changes in the fair value of investments are included in the
Statement of Comprehensive Income.
|
Six months
ended
31 December 2023
(Unaudited)
£'000
|
Six months
ended
31 December 2022
(Unaudited)
£'000
|
Year
ended
30 June
2023
(Audited)
£'000
|
Opening valuation
|
266,011
|
263,393
|
263,393
|
Purchases at cost
|
53,460
|
40,790
|
77,533
|
Sales proceeds
|
(48,829)
|
(37,192)
|
(57,170)
|
Realised gains/(losses) on
sales1
|
2,240
|
5,131
|
(1,273)
|
Effective interest
adjustment
|
193
|
121
|
243
|
Unrealised
gains/(losses)2
|
8,572
|
(8,432)
|
(16,715)
|
Closing valuation
|
281,647
|
263,811
|
266,011
|
Net
capital gains/(losses)
|
10,812
|
(3,301)
|
(17,988)
|
1 'Realised gains/(losses)' are made up of gains of £5,027,000
(six months ended 31 December 2022: £5,131,000; year ended 30 June
2023: £6,030,000) and losses of £2,787,000 (six months ended 31
December 2022: £nil; year ended 30 June 2023:
£7,303,000).
2 'Unrealised gains/(losses)' are made up of gains of £20,211,000
(six months ended 31 December 2022: £6,113,000; year ended 30 June
2023: £8,225,000) and losses of £11,639,000 (six months ended 31
December 2022: £14,545,000; year ended 30 June 2023: £24,940,000).
Fair Value Hierarchy
IFRS 13 Fair Value Measurement
requires an analysis of investments valued at fair value based on
the reliability and significance of information used to measure
their fair value. The Level is determined by the lowest (that is
the least reliable or independently observable) level of input that
is significant to the fair value measurement for the individual
investment in its entirety as follows:
· Level 1 - investments quoted in an active market;
· Level 2 - investments whose fair value is based directly on
observable current market prices or indirectly being derived from
market prices;
· Level 3 - investments whose fair value is determined using a
valuation technique based on assumptions that are not supported by
observable current market prices or based on observable market
data.
Transfers in and out of the levels
are deemed to have occurred at the start of the reporting
period.
Investments valued using stock
market active prices are disclosed as Level 1 and this is the case
for the quoted equity investments that the Company holds.
Securities in Level 2 are priced using evaluated prices from a
third party vendor, together with a price comparison made to
evaluated secondary and tertiary third party sources, including
broker quotes and benchmarks. As a result, these investments are
disclosed as Level 2 - recognising that the fair values of these
investments are not as visible as quoted investments and their
higher inherent pricing risk.
Investments included as Level 3 are
priced by the investment manager using a valuation technique
reviewed by the Board taking into account, where appropriate,
latest dealing prices, broker statements, valuation information and
other relevant factors.
Financial assets at fair value
|
Level 1
£'000
|
Level 2
£'000
|
Level 3
£'000
|
Total
£'000
|
Fixed income
securities1
|
234
|
233,703
|
2,356
|
236,293
|
Equity shares2
|
41,668
|
3,200
|
486
|
45,354
|
As
at 31 December 2023
|
41,902
|
236,903
|
2,842
|
281,647
|
Financial assets at fair value
|
Level 1
£'000
|
Level 2
£'000
|
Level 3
£'000
|
Total
£'000
|
Fixed income
securities1
|
235
|
209,180
|
4,513
|
213,928
|
Equity shares2
|
45,926
|
3,834
|
123
|
49,883
|
As
at 31 December 2022
|
46,161
|
213,014
|
4,636
|
263,811
|
Financial assets at fair value
|
Level 1
£'000
|
Level 2
£'000
|
Level 3
£'000
|
Total
£'000
|
Fixed income
securities1
|
228
|
219,970
|
50
|
220,248
|
Equity shares2
|
42,088
|
3,621
|
54
|
45,763
|
As
at 30 June 2023
|
42,316
|
223,591
|
104
|
266,011
|
1 Fixed income securities include fixed and floating rate
securities, convertible securities and preference
shares.
2 Equity shares include investment funds.
Financial assets at fair value
through profit or loss reconciliation - Level 3
IFRS 13 requires disclosure, by
class of financial instrument, if the effect of changing one or
more inputs to reasonably possible alternative assumptions would
result in a significant change to the fair value measurement. The
information used in determination of the fair value of Level 3
investments is chosen with reference to the specific underlying
circumstances and position of the investee company. On that basis,
the Board believes that the impact of changing one or more of the
inputs to reasonably possible alternative assumptions would not
change the fair value significantly. The following shows a
reconciliation from the beginning to the end of the period for fair
value measurements in Level 3 of the fair value
hierarchy.
Level 3 Financial Assets
|
Six months
ended
31 December
2023
(Unaudited)
£'000
|
Opening valuation
|
104
|
Purchases
|
1,457
|
Sales
|
(344)
|
Unrealised gains
|
1,993
|
Realised losses
|
(1,544)
|
Transfers into Level 3
|
1,184
|
Transfers out of Level 3
|
(8)
|
Closing valuation
|
2,842
|
Transfers into Level 3
Secured Income Fund PLC of £18,000
(as at 30 June 2023: £321,000) was transferred out of Level 2 to
Level 3 because its shares were delisted during the six months
ended 31 December 2023.
REA Trading 13.5% 21-30/09/2027 of
£851,000 (as at 30 June 2023: £863,000) was transferred out of
Level 2 to Level 3 due to the lack of observable data at period
end.
Oro Negro Drilling 7.5%
14-24/01/2019 DFLT £15,000 (as at 30 June 2023: £8,000) were
transferred out of Level 3 to Level 2 since it has been priced
through broker quotes.
Quantitative information of significant unobservable inputs -
Level 3
The following table summarises the
significant unobservable inputs the Company used to value its
significant investments categorised within Level 3 as at 31
December 2023:
Description
|
Fair value as
at
31 December
2023
£000
|
Valuation
technique
|
Significant
Unobservable
inputs
|
Range/input
|
Weighted
Average
|
Gaming Innov 23-18/12/2026
FRN
|
1,474
|
Cost
|
N/A
|
N/A
|
N/A
|
REA Trading 13.5%
21-30/09/2027
|
851
|
Vendor
pricing
|
Unadjusted broker quote
|
1
|
N/A
|
Cabonline Group Holding
AB
|
398
|
Cost
|
N/A
|
N/A
|
N/A
|
R.E.A. Holdings Plc CW
15/07/2025
|
70
|
Black
Scholes model
|
Volatility
|
52.3
|
N/A
|
ORO SG 12% 19-20/12/2025
DFLT
|
31
|
Vendor
pricing
|
Unadjusted broker quote
|
1
|
N/A
|
Secured Income Fund PLC
|
18
|
Vendor
pricing
|
Unadjusted broker quote
|
1
|
N/A
|
Total
|
2,842
|
|
|
|
|
The remaining 24 investments
classified as Level 3 have not been included in the above analysis
as they have fair value of nil as at 31 December 2023.
9 Stated capital account
Authorised
The authorised share capital of the
Company is represented by an unlimited number of ordinary shares of
no par value.
Allotted, called up and
fully-paid
|
Number of
ordinary shares
|
Amount
received
£'000
|
Share issue
costs
£'000
|
Share
capital
£'000
|
Total as at 1 July 2023
|
524,601,858
|
|
|
244,884
|
1,750,000 ordinary shares of no par
value allotted on 29 September 2023 at 49.00p
|
1,750,000
|
858
|
(6)
|
852
|
1,500,000 ordinary shares of no par
value allotted on 1 November 2023 at 48.15p
|
1,500,000
|
722
|
(5)
|
717
|
1,500,000 ordinary shares of no par
value allotted on 24 November 2023 at 48.80p
|
1,500,000
|
732
|
(5)
|
727
|
500,000 ordinary shares of no par
value allotted on 30 November 2023 at 49.00p
|
500,000
|
245
|
(2)
|
243
|
750,000 ordinary shares of no par
value allotted on 7 December 2023 at 49.00p
|
750,000
|
367
|
(3)
|
364
|
500,000 ordinary shares of no par
value allotted on 14 December 2023 at 49.10p
|
500,000
|
245
|
(2)
|
243
|
500,000 ordinary shares of no par
value allotted on 20 December 2023 at 49.90p
|
500,000
|
250
|
(2)
|
248
|
750,000 ordinary shares of no par
value allotted on 21 December 2023 at 50.00p
|
750,000
|
375
|
(3)
|
372
|
500,000 ordinary shares of no par
value allotted on 22 December 2023 at 50.00p
|
500,000
|
250
|
(2)
|
248
|
Total issued share capital at 31 December
2023
|
532,851,858
|
4,044
|
(30)
|
248,898
|
The balance of shares held in
treasury by the Company at 31 December 2023 was nil (as at 31
December 2022: nil; as at 30 June 2023: nil).
Refer to note 13 for further
information subsequent to the reporting period.
10 Net asset per ordinary
share
|
31 December 2023
(Unaudited)
|
31
December 2022
(Unaudited)
|
30 June
2023
(Audited)
|
NAV (£'000)
|
253,122
|
238,893
|
240,431
|
Net asset per ordinary share
(pence)
|
47.50
|
48.39
|
45.83p
|
Net asset per ordinary share has
been calculated based on the share capital in issue as at year end.
The issued share capital as at 31 December 2023 comprised of
532,851,858 ordinary shares (as at 31 December 2022: 493,651,858;
as at 30 June 2023: 524,601,858).
11 Dividends
|
Six months
ended
31 December 2023
(Unaudited)
£'000
|
Six months
ended
31
December 2022
(Unaudited)
£'000
|
Year
ended
30 June
2023
(Audited)
£'000
|
Amounts recognised as distributions
to equity holders in the period/year:
|
|
|
|
Dividends in respect of the previous
period
|
|
|
|
- Fourth interim dividend
|
7,816
|
7,054
|
7,054
|
Dividends in respect of
the period under review
|
|
|
|
- First interim dividend
|
5,264
|
4,815
|
4,815
|
- Second interim dividend
|
-
|
-
|
4,963
|
- Third interim dividend
|
-
|
-
|
5,153
|
|
13,080
|
11,869
|
21,985
|
Refer to note 13 for further
information subsequent to the reporting period.
A second interim dividend of 1.00p
per ordinary share in respect of the quarter ended 31 December 2023
is payable on 28 February 2024 to shareholders on the register on
26 January 2024. In accordance with the IFRS, this dividend has not
been included as a liability in this set of condensed financial
statements.
12
Related Parties
All transactions with related
parties are carried out on an arm's length basis.
The
Board
As at 31 December 2023, the
Directors each beneficially held the following shares in the
Company:
Caroline Hitch:
211,5001 ordinary shares
Wendy Dorman:
149,529 ordinary shares
Duncan Baxter:
195,127 ordinary shares
Ian Cadby:
25,000 ordinary shares
John Newlands:
10,000 ordinary shares
1 inclusive of 41,500 shares held by Ms Hitch's
mother.
There were no other transactions
with the Board during the period, other than the above and the
directors' fees disclosed in note 5.
Investment Manager
During the period, there were no
transactions with the Investment Manager other than investment
manager fees. Refer to note 4 for further information.
On 15 November 2023, the Company
announced that the Investment Manager and AIFM, CQS (UK) LLP, has
advised that it is being acquired by Manulife Investment
Management, a leading international financial services group. There
are no planned changes to the investment management team. The
transaction is expected to close in early 2024.
13 Subsequent events
The Board have evaluated subsequent
events for the Company through to 28 February 2024, the date the
condensed financial statements were available to be issued and has
concluded that the material events listed below do not require
adjustment of the condensed financial statements.
Share issues
Following the six months ended 31
December 2023, the Company undertook a further three issues of
ordinary shares issuing, in total, an additional 4,000,000 ordinary
shares of no par value for total consideration of £2,007,000. As at
the date of this report, the issued share capital of the Company
was 536,851,858 ordinary shares of no par value.
Dividend declaration
On 18 January 2024, the Company
announced its second interim dividend of 1.00p per ordinary share,
payable on 28 February 2024 to shareholders on the register on 26
January 2024, having an ex-dividend date of 25 January
2024.
Glossary of Terms and Definitions
Alternative
Performance Measures
("APMs")
|
Alternative performance measures are
numerical measures of the Company's current, historical or future
performance, financial position or cash flows, other than financial
measures defined or specified in the applicable financial
framework. The Company's applicable financial framework includes
IFRS and the AIC SORP. Refer to below for further
details.
|
Dividend yield
|
The annual dividend per ordinary
share expressed as a percentage of the share price (bid
price).
|
Net
asset value or NAV and NAV per ordinary share
|
The value of total assets less total
liabilities. Liabilities for this purpose include current and
long-term liabilities. To calculate the Net asset value per
ordinary share, the Net asset value is divided by the number of
ordinary shares in issue.
|
Reference rate (RFR)
|
The SONIA (Sterling Overnight Index
Average) reference rate displayed in the relevant screen of any
authorized distributor of that reference.
|
Shareholder
|
Investor who holds shares in the
Company.
|
Alternative Performance Measures
In accordance with European
Securities and Markets Authority Guidelines on APMs, the Board has
considered what APMs are included in the Interim Financial
Statements which require further clarification.
The Company uses the following APMs
(as described below) to present a measure of profitability which is
aligned with the requirements of our investors and potential
investors, to draw out meaningful data around revenues and
earnings, and to provide additional information not required for
disclosure under accounting standards:
· NAV and ordinary share price total return
· Revenue earnings per ordinary share
· Dividends per ordinary share
· Premium/Discount
· Gearing
All APMs relate to past performance.
The following tables detail the methodology of the Company's
APMs.
NAV
and ordinary share price total return
The return to Shareholders is
calculated on a per ordinary share basis by adding dividends paid
and declared in the period to the increase or decrease in the share
price (bid) or NAV. The dividends are assumed to have been
reinvested in the form of ordinary shares or net assets.
2023
|
Dividend per ordinary
share
|
NAV
|
Share
price (bid)
|
31 December 2023
(Unaudited)
|
2.00p
|
47.50
|
49.20
|
30 June 2023 (Audited)
|
4.49p
|
45.83
|
46.60
|
Capital return
|
|
3.64%
|
5.58%
|
Effect of dividend
reinvestment
|
|
5.78%
|
5.68%
|
Total return
|
|
9.42%
|
11.26%
|
2022
|
Dividend per ordinary
share
|
NAV
|
Share
price (bid)
|
31 December 2022
(Unaudited)
|
2.00p
|
48.39
|
52.60
|
30 June 2022 (Audited)
|
4.48p
|
49.30
|
51.20
|
Capital return
|
|
(1.85)%
|
2.73%
|
Effect of dividend
reinvestment
|
|
5.10%
|
5.02%
|
Total return
|
|
3.25%
|
7.75%
|
Revenue earnings per ordinary share
Revenue earnings (which includes
dividends paid out during the six months ended 31 December 2023)
divided by the weighted average number of ordinary shares in issue
during the six months ended 31 December 2023.
|
|
Six months
to
31 December
2023
(Unaudited)
|
Six months
to
31 December
2022
(Unaudited)
|
Revenue earnings
|
a
|
£11,479,000
|
£10,982,000
|
Weighted average number of ordinary
shares in issue
|
b
|
526,645,336
|
483,222,238
|
Revenue earnings per ordinary share
|
(a/b)*100
|
2.18p
|
2.27p
|
Dividends per ordinary share
The total amount of dividends
declared for every issued ordinary share over the six months ended
31 December 2023.
Dividend History
|
Rate
|
xd date
|
Record date
|
Payment
date
|
First interim 2024
|
1.00p
|
26 October
2023
|
27 October
2023
|
30
November 2023
|
Second interim 2024
|
1.00p
|
25 January
2024
|
26 January
2024
|
28
February 2024
|
Interim dividend per ordinary share
|
2.00p
|
|
|
|
|
|
|
|
|
First interim 2023
|
1.00p
|
27 October
2022
|
28 October
2022
|
25
November 2022
|
Second interim 2023
|
1.00p
|
26 January
2023
|
27 January
2023
|
28
February 2023
|
Interim dividend per ordinary share
|
2.00p
|
|
|
|
Premium/Discount
A premium is the amount by which the
market price per ordinary share of an investment company is higher
than the NAV per ordinary share. If the market price per ordinary
share is lower than the NAV, this is called a discount. The premium
or discount is expressed as a percentage of the NAV per ordinary
share.
|
|
31 December
2023
(Unaudited)
|
30 June
2023
(Audited)
|
Share price (bid price)
|
a
|
49.20p
|
46.60p
|
NAV per ordinary share
|
b
|
47.50p
|
45.83p
|
Premium
|
(a-b)/b
|
3.58%
|
1.68%
|
Gearing
The level of borrowing that the
Company has undertaken. Represented by total assets (being total
assets less current liabilities (excluding borrowings)) less all
cash, expressed as a percentage of shareholders' funds (being the
NAV of the Company) minus 100.
|
|
31 December
2023
(Unaudited)
£'000
|
30 June
2023
(Audited)
£'000
|
Total assets
|
|
289,366
|
279,618
|
Current liabilities (excluding
borrowings)
|
|
(1,244)
|
(4,187)
|
Cash and cash equivalents
|
|
(2,696)
|
(6,597)
|
Total
|
a
|
285,426
|
268,834
|
|
|
|
|
NAV
|
b
|
253,122
|
240,431
|
Gearing
|
((a/b)-1)*100
|
12.76%
|
11.81%
|
A copy of the Company's Interim
Report will be available shortly from the Company Secretary, (BNP
Paribas S.A., Jersey Branch, IFC 1, The Esplanade, St Helier,
Jersey, JE1 4BP), or will be circulated on the Company's website
(https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd).