TIDMRCHA
RNS Number : 1349H
Rothschilds Continuation Finance CI
26 November 2015
Rothschilds Continuation Finance (C.I.) Limited
Half-yearly Report for the six-month period ended 30 September
2015
Interim Management Report
Summary of Important Events
Rothschilds Continuation Finance (C.I.) Limited ("the Company")
is a wholly-owned subsidiary of Rothschilds Continuation Limited.
The principal activity of the Company is the raising of finance for
the purpose of lending it to other companies, including members of
the Rothschild Concordia SAS group. In the period ended 30
September 2015, GBP125,000,000 perpetual subordinated guaranteed
notes were in issue by the Company.
Risks and Uncertainties
The principal risks of the Company are credit risk, liquidity
risk, market risk and operational risk. The Company follows the
risk management policies of a fellow Group company, N M Rothschild
& Sons Limited.
The Company's market risk exposure is limited to interest rate
risk. Exposure to interest rate movements on the perpetual
subordinated note issues has been passed to a fellow subsidiary N M
Rothschild & Sons Limited ("NMR") and parent undertaking
Rothschilds Continuation Limited ("RCL"), as the issue proceeds
have been on-lent to NMR and RCL at a fixed margin of 1/64 per cent
above the rate being paid. Currency risk is not considered
significant as all material foreign currency balances and cash
flows are matched.
Liquidity risk has similarly been transferred to NMR and RCL as
the funds on-lent have the same maturity dates as the notes
issued.
The Company's principal credit risk is with NMR and RCL. Since
notes issued by the Company have been guaranteed by RCL, and funds
have been on-lent to NMR and RCL. The Company's ability to meet its
obligations in respect of notes issued by it is affected by NMR's
and RCL's ability to make payments to the Company.
Operational risk arising from inadequate or failed internal
processes, people and systems or from external events is managed by
maintaining a strong framework of internal controls.
This half-yearly financial report has not been audited or
reviewed by the Company's auditors pursuant to the Auditing
Practices Board guidance on Review of Interim Financial
Information.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements has been prepared in accordance with IAS 34 Interim
Financial Reporting; and
- the interim management report includes a fair review of (i) the important events that have
occurred during the first six months of the financial year, and their impact on the condensed
set of financial statements, and (ii) the principal risks and uncertainties for the remaining
six months of the financial year.
By Order of the Board
Peter Barbour
Director
26 November 2015
Condensed Interim Statement of Comprehensive Income
For the six months ended 30 September 2015
6 months 6 months to
to
30 September 30 September
2015 2014
Note GBP GBP
---------------------------- ----- ------------- -------------
Interest income 5,651,535 5,651,562
---------------------------- ----- ------------- -------------
Interest expense (5,640,410) (5,640,410)
---------------------------- ----- ------------- -------------
Administrative expenses - -
---------------------------- ----- ------------- -------------
Profit before tax 3 11,125 11,152
---------------------------- ----- ------------- -------------
Income tax expense 4 (2,225) (2,342)
---------------------------- ----- ------------- -------------
Profit for the financial
period 8,900 8,810
---------------------------- ----- ------------- -------------
Other comprehensive income - -
---------------------------- ----- ------------- -------------
Total comprehensive income
for the financial period 8,900 8,810
---------------------------- ----- ------------- -------------
Condensed Interim Statement of Changes in Equity
For the six months ended 30 September 2015
Retained
Share Capital Earnings Total
GBP GBP GBP
---------------------------- ---------------- ---------- --------
At 1 April 2015 100,000 130,660 230,660
---------------------------- ---------------- ---------- --------
Total comprehensive income
for the period - 8,900 8,900
---------------------------- ---------------- ---------- --------
At 30 September 2015 100,000 139,560 239,560
---------------------------- ---------------- ---------- --------
At 1 April 2014 100,000 111,458 211,458
---------------------------- ---------------- ---------- --------
Total comprehensive income
for the period - 8,810 8,810
---------------------------- ---------------- ---------- --------
At 30 September 2014 100,000 120,268 220,268
---------------------------- ---------------- ---------- --------
Condensed Interim Balance Sheet
At 30 September 2015
At 30 September At 31 March
2015 2015 2015 2015
Note GBP GBP GBP GBP
----------------------------- ----- ------------ -------------- ------------ --------------
Non-current assets
Loans to group undertakings 5 125,000,000 125,000,000
----------------------------- ----- ------------ -------------- ------------ --------------
Current assets
Debtors 6 3,618,601 1,339,994
----------------------------- ----- ------------ -------------- ------------ --------------
Cash and cash equivalents 7 3,624,863 251,935
----------------------------- ----- ------------ -------------- ------------ --------------
7,243,464 1,591,929
----------------------------- ----- ------------ -------------- ------------ --------------
Current liabilities
Current tax payable (7,329) (5,104)
----------------------------- ----- ------------ -------------- ------------ --------------
Other financial
liabilities 8 (6,996,575) (1,356,165)
----------------------------- ----- ------------ -------------- ------------ --------------
Net current assets 239,560 230,660
----------------------------- ----- ------------ -------------- ------------ --------------
Total assets less
current liabilities 125,239,560 125,230,660
----------------------------- ----- ------------ -------------- ------------ --------------
Non-current liabilities
Subordinated guaranteed
notes 9 (125,000,000) (125,000,000)
----------------------------- ----- ------------ -------------- ------------ --------------
Net assets 239,560 230,660
----------------------------- ----- ------------ -------------- ------------ --------------
Shareholders' equity
Share capital 11 100,000 100,000
----------------------------- ----- ------------ -------------- ------------ --------------
Retained earnings 139,560 130,660
----------------------------- ----- ------------ -------------- ------------ --------------
Total shareholders'
equity 239,560 230,660
----------------------------- ----- ------------ -------------- ------------ --------------
Condensed Interim Cash Flow Statement
For the six months ended 30 September 2015
6 months 6 months to
to
30 September 30 September
2015 2014
Note GBP GBP
------------------------------------ ----- ------------- -------------
Cash flow from operating
activities
Profit for the financial
period 8,900 8,810
------------------------------------ ----- ------------- -------------
Income tax expenses 2,225 2,342
------------------------------------ ----- ------------- -------------
Operating profit before changes
in working capital and provisions 11,125 11,152
------------------------------------ ----- ------------- -------------
Net (increase) in debtors (2,278,607) (2,334,180)
------------------------------------ ----- ------------- -------------
Net increase in other financial
(MORE TO FOLLOW) Dow Jones Newswires
November 26, 2015 12:34 ET (17:34 GMT)
liabilities 5,640,410 5,640,410
------------------------------------ ----- ------------- -------------
Cash generated from operations 3,372,928 3,317,382
------------------------------------ ----- ------------- -------------
Net cash from operating activities 3,372,928 3,317,382
------------------------------------ ----- ------------- -------------
Net increase in cash and
cash equivalents 3,372,928 3,317,382
------------------------------------ ----- ------------- -------------
Cash and cash equivalents
at 1 April 251,935 251,614
------------------------------------ ----- ------------- -------------
Cash and cash equivalents
at 30 September 7 3,624,863 3,568,996
------------------------------------ ----- ------------- -------------
Interest paid and received during the period were as
follows:
6 months to 6 months to
30 September 30 September
2015 2014
GBP GBP
--------------------- ------------- -------------
Interest paid 0 0
--------------------- ------------- -------------
Interested received 3,372,928 3,317,382
--------------------- ------------- -------------
The notes to the condensed interim financial statements form an
integral part of the condensed interim financial statements.
Notes to the Condensed Interim
Financial Statements
(forming part of the Condensed Interim Financial Statements)
For the six months ended 30 September 2015
1. Basis of preparation
Basis of preparation
The condensed interim financial statements are prepared
and approved by the Directors in accordance with IAS
34 Interim Financial Reporting. The condensed interim
financial statements are prepared under the historical
cost accounting rules and should be read in conjunction
with the annual financial statements for the year ended
31 March 2015, which have been prepared in accordance
with International Financial Reporting Standards.
The accounting policies and methods of valuation are
identical to those applied in the financial statements
for the year ended 31 March 2015. New accounting standards
that are effective for the year ending 31 March 2016
have no impact on these condensed interim financial statements.
2. Directors' Emoluments
None of the Directors received any remuneration in respect of
their services to the Company during the period (2014: GBPnil).
3. Profit Before Tax
6 months 6 months
to to
30 September 30 September
2015 2014
GBP GBP
----------------------------------------- ------------- -------------
Is stated after
i. Income
Income from loans to group undertakings
Parent undertaking 2,260,081 2,260,081
----------------------------------------- ------------- -------------
Fellow subsidiary undertaking 3,390,122 3,390,122
----------------------------------------- ------------- -------------
5,650,203 5,650,203
Other interest receivable from
fellow subsidiary undertaking 1,332 1,359
----------------------------------------- ------------- -------------
5,651,535 5,651,562
ii. Charges
Interest payable on subordinated
guaranteed notes 5,640,410 5,640,410
----------------------------------------- ------------- -------------
4. Taxation
6 months to 6 months to
30 September 30 September
2015 2014
GBP GBP
-------------------------------- ------------- -------------
Profit before tax 11,125 11,152
-------------------------------- ------------- -------------
United Kingdom corporation tax
at 20% (2014: 21%) 2,225 2,342
-------------------------------- ------------- -------------
5. Loans to Group undertakings
Subordinated
Perpetual Loans
to Group Undertaking
GBP
---------------------------------------- ---------------------
At the beginning and end of the period 125,000,000
---------------------------------------- ---------------------
The interest rate charged on the subordinated perpetual loans to
group undertakings is 9 1/64 per cent. The fair value of the loans
was GBP152,811,250 as at 30 September 2015 (31 March 2015:
GBP154,968,750). The fair value was estimated using the market
price at the balance sheet date.
6. Debtors
At 30 September At 31 March
2015 2015
GBP GBP
------------------------------------ ---------------- ------------
Amounts owed by parent undertaking 2,803,490 543,408
------------------------------------ ---------------- ------------
Amounts owed by fellow subsidiary
undertaking 815,111 796,586
------------------------------------ ---------------- ------------
3,618,601 1,339,994
------------------------------------ ---------------- ------------
7. Cash and Cash Equivalents
At 30 September 2015 the Company held cash of GBP3,624,863 (31
March 2015: GBP251,935) at a fellow subsidiary undertaking. The
Company receives interest at base rate.
8. Other Financial Liabilities
At 30 September At 31 March
2015 2015
GBP GBP
------------------ ---------------- ------------
Interest payable 6,996,575 1,356,165
------------------ ---------------- ------------
Interest is payable on the subordinated guaranteed notes at 9
per cent.
9. Subordinated Guaranteed Notes
At 30 September At 31 March
2015 2015
GBP GBP
------------------------------- ---------------- ------------
GBP125,000,000 9% Perpetual
Subordinated Guaranteed Notes 125,000,000 125,000,000
------------------------------- ---------------- ------------
The fair value of the subordinated guaranteed notes was
GBP152,686,250 as at 30 September 2015 (31 March 2015:
GBP154,843,750). The fair value was estimated using the market
price at the balance sheet date.
10. Maturity of Financial Liabilities
The following table shows contractual cash flows payable by the
Company on the subordinated guaranteed notes, analysed by remaining
contractual maturity at the balance sheet date. Interest cash flows
on the loan notes are shown up to five years only, with the
principal balance being shown in the > 5yr column.
Demand Demand 3m - 1yr 1yr - >5 yr Total
- 3m 5yr
GBP GBP GBP GBP GBP GBP
------------ -------- -------- ----------- ----------- ------------ ------------
Loan notes
in issue - - 11,250,000 45,000,000 125,000,000 181,250,000
------------ -------- -------- ----------- ----------- ------------ ------------
11. Share Capital
At 30 September At 31 March
2015 2015
GBP GBP
------------------------------- ---------------- ------------
Authorised
Ordinary shares of GBP1 each 100,000 100,000
------------------------------- ---------------- ------------
Allotted, called up and fully
paid
Ordinary shares of GBP1 each 100,000 100,000
------------------------------- ---------------- ------------
12. Related Party Transactions
Parties are considered to be related if one party controls, is
controlled by or has the ability to exercise significant influence
over the other party. This includes key management personnel, the
parent company and fellow subsidiaries.
At 30 September At 31 March
2015 2015
GBP GBP
--------------------------------------- ---------------- ------------
Subordinated perpetual loan to
parent undertaking 50,000,000 50,000,000
--------------------------------------- ---------------- ------------
Subordinated perpetual loan to
fellow subsidiary undertaking 75,000,000 75,000,000
--------------------------------------- ---------------- ------------
Amounts owed by parent undertaking 2,803,490 543,408
--------------------------------------- ---------------- ------------
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