TIDMSJG
RNS Number : 1699W
Schroder Japan Growth Fund PLC
14 April 2023
Half Year Report
Schroder Japan Growth Fund plc hereby submits its Half Year
Report for the period ended 31 January 2023 as required by the FCA
Disclosure Guidance and Transparency Rule 4.2.
The Half Year Report is also being published in hard copy format
and an electronic copy of that document will shortly be available
to download from the Company's webpages
www.schroders.co.uk/japangrowth . Please click on the following
link to view the document:
http://www.rns-pdf.londonstockexchange.com/rns/1699W_1-2023-4-13.pdf
The Company has submitted its Half Year Report to the National
Storage Mechanism and it will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
Enquiries:
Paula Lockwood
Schroder Investment Management Limited Tel: 020 7658 6000
Half Year Report and Accounts
for the six months ended 31 January 2023
Interim Management Report - Chairman's Statement
I succeeded Anja Balfour as Chairman following the Company's AGM
in December 2022. On behalf of the Board, I would like to thank
Anja for providing sterling service during her nine years with the
Company, initially as a non-executive director and, since November
2018, as Chairman. During her time as Chairman, the Company's
fortunes started to improve significantly, and I am pleased to
report a continuation of the outperformance of the Company's net
asset value ("NAV") total return against its benchmark during the
first six months of the current financial year.
P erformance
In the six-month period to 31 January 2023, the Company produced
a net asset value ("NAV") total return of 5.3%, outperforming the
benchmark return of 4.8%. The share price also produced a positive
total return of 6.0% during the period.
Our portfolio manager, Masaki Taketsume, continues to manage a
high conviction, yet balanced portfolio of large and smaller
companies with a strong emphasis on valuation and he has navigated
a volatile period in the Japanese equity market very well. Masaki
will be returning to Tokyo with his family at the beginning of
April 2023. He has been based in London since 2017, but returning
to the Schroders office in Tokyo will be particularly helpful for
following small-cap companies, where he sees some exciting
opportunities, while proximity to his in-house research team can
only be of benefit for his investment process.
Further comment on performance and investment policy may be
found in the Investment Manager's review.
Discount management
During the period under review, the Company's shares continued
to trade at a discount to net asset value and the board utilised
its buy back authority to purchase 375,690 shares for cancellation
at an average discount of 12.9%. At the beginning of the period the
discount was 12.4% and by the end of the period, the discount had
narrowed slightly to 12.1%. The Company will continue to monitor
the discount and to purchase shares when appropriate.
Gearing
The Company's term loan remained fully utilised whilst the
revolving credit facility was undrawn. The average gearing during
the six months to 31 January 2023 was 11.8% and, as at 11 April,
the gearing was 12.5%. The Company will continue to use
leverage.
Change of Company Name
Schroder Japan Growth Fund plc will change its name to Schroder
Japan Trust plc. The Company will make a further announcement
following confirmation of the change of name by Companies House.
The stock ticker for the Company will remain unchanged as SJG. The
Board have decided to remove 'Growth' from the Company's name, to
reflect more accurately the investment approach of the Manager.
There are no other changes to the Company, with the Company's
objective and investment approach remaining unchanged. The Company
aims to achieve long-term capital growth by investing in a
diversified portfolio of the best quality but undervalued companies
in Japan. Further details can be found on the website at
https://www.schroders.com/SJG.
Outlook
Japan enters 2023 in a unique position amongst developed nations
as it lacks many of the widespread challenges to economic growth
that face many of its peers. In fact, it appears to be entering an
unusual period of economic stability with sustainable price
inflation, largely driven by global macroeconomic events, but
arguably viewed as a positive given Japan's history of deflation.
Corporate earnings remain robust with quarterly results
announcements consistently ahead of expectations despite the
relatively slow removal of Covid-19 restrictions. Importantly, the
trend towards improvements in corporate governance continues apace,
with greater emphasis at the corporate level on increasing returns
on equity and more disciplined approaches to capital allocation.
These structural changes should encourage investors who are looking
to allocate to Japanese companies and, as it has demonstrated over
the last few years, the Company's portfolio is well placed to
benefit from them.
Philip Kay
Chairman
13 April 2023
Interim Management Report - Manager's Review
Over the first six months of the Company's financial year to 31
January 2023, the Company's net asset value increased by 5.3%,
while its benchmark rose by 4.8%.(1) Before we delve more deeply
into the drivers of recent performance, we would like to explain
the investment philosophy and approach that sits behind our
decision-making. This should provide some important context to help
you understand why the portfolio is positioned the way it is, and
what you should expect in terms of future performance.
Our investment approach
We believe the Japanese equity market ultimately acts
efficiently in reflecting the intrinsic value of companies. In the
short to medium-term, however, considerable inefficiencies are
frequently evident in individual stocks. These inefficiencies
provide repeatable opportunities to identify and invest in
undervalued stocks, with the aim of delivering a better return than
the market as a whole on a rolling three-to-five year view.
Our investment resource is entirely devoted to this aim,
focusing on individual company fundamentals to understand the true
worth of a stock and investing in a portfolio of the highest
conviction ideas. These then tend to be held for the long term,
with value being realised as the market gradually reflects their
true value more efficiently.
Portfolio holdings tend to fall into three categories of
inefficiency:
1. Market misperception - companies with self-improving
credentials, with management initiatives to sustainably enhance
operational performance being under-appreciated by other
investors.
2. Market oversight - undervalued companies, especially among
small and mid-caps where research coverage is less widespread, with
strong and defendable business franchises in niche product
areas.
3. Short-term overreaction - ideas arising from abrupt but
transitory events which push valuations of quality companies
temporarily to unsustainably low levels.
Outside these three categories, the balance of the portfolio
represents "best in class" stocks with reasonable valuations. The
weighting given to each of these segments evolves over time, but a
reasonable exposure to each category ensures a good level of
diversification for the portfolio as a whole. Meanwhile, the
approach tends to result in a bias towards value stocks(2) and
smaller companies, as well as an overall focus on quality.
The portfolio tends to exhibit a high "active share", which
means that its constituents deviate significantly from the
benchmark index. Gearing (financial leverage) typically ranges
between 10% and 17.5%, allowing shareholders to potentially benefit
even more as the inefficiencies we have identified become more
appropriately priced by the market.
(1) Source: Morningstar, cum-income NAV with dividends
reinvested, 31 January 2023 data, net of fees. Past performance is
not a guide to future performance and may not be repeated.
(2) The term 'Value stocks' refers to shares of a company that
appears to trade at a lower price relative to its fundamentals,
such as dividends, earnings, or sales, making it appealing to value
investors.
Portfolio strategy
So, what does this mean for current portfolio strategy and
positioning? Currently, the biggest category within the portfolio
is market misperception which accounts for almost 40% of assets.
This includes companies such as Hitachi and Seven & i, where we
see the prospect of sustainable improvements in returns from
management efforts that are not yet reflected in valuations.
Almost 30% of the portfolio is in market oversights, such as
Fukushima Galilei and Hosokawa Micron, where we find highly
competitive smaller businesses trading at a significant discount to
their large cap and global peers. 14% of the portfolio is invested
in short-term overreactions, including out-of-favour technology
opportunities such as NRI and Ibiden. These businesses are
beneficiaries of long-term structural tailwinds but their shares
have been sold down aggressively - in our view, too aggressively -
over the last eighteen months.
The remaining 20% of the portfolio is invested in what we
consider to be best-in-class operators, such as Toyota Motor and
Sumitomo Mitsui Financial Group.
From a sector perspective, this means a bias towards Information
& Communication, Machinery and Other Financing Business. As is
typical, the portfolio is also overweight towards small and
mid-sized businesses, where valuations look particularly attractive
as the domestic Japanese economy recovers.
Recent performance drivers
The Japanese stock market was volatile throughout the period,
reflecting global market concerns about the direction of US
interest rates as the fight against inflation intensified. In
sterling terms, however, the market's return over the first half of
the Company's financial year was relatively strong. Value stocks
outperformed growth stocks and smaller companies generally did
better than larger caps. Meanwhile, there was a beneficial impact
from the Company's gearing, and helpful contributions to relative
performance also came from individual stocks. All these factors
were helpful to performance during the period, as reflected in the
positive NAV return and the modest outperformance of the
benchmark.
The strongest market influence came from an unexpected change in
monetary policy announced by the Bank of Japan (BOJ), which widened
the band within which it has been maintaining 10-year bond yields.
Although such a change to the policy of "yield curve control" has
long been recognised by investors as a logical first step towards a
more normal monetary policy environment, the timing of the decision
came as a surprise. The main beneficiaries of this change were
banks and other financials, because yield curve control has
suppressed net interest margins (the difference between the rate at
which banks borrow and lend money, which in turn influences how
profitable they are). Financial-related sectors therefore reacted
positively to this change, resulting in strong contributions for
the Company from the portfolio's biggest holding, Sumitomo Mitsui
Financial Group, one of Japan's largest banks, and T&D
Holdings, a major life insurer. This was partly offset by a
negative contribution from not holding Mitsubishi Financial Group
during the period. Among stocks held, the largest negative
contribution came from Mitsui Fudosan, a large cap real estate
developer, which declined amid concern about how the change in
monetary policy may impact the Japanese property market.
Portfolio activity
We added INFRONEER Holdings, a mid-sized general construction
company, to the portfolio during the period. Its management team is
evolving the business away from road-paving and towards
infrastructure management services, which should enable it to
deliver better earnings growth with less volatility. Ultimately,
this should translate into a premium valuation, but the shares
currently trade broadly in line with other construction companies.
This market misperception provides significant room for the stock
to be re-rated over time.
We also participated in the initial public offering (IPO) of
Daiei Kankyo, one of Japan's largest vertically integrated waste
management companies. Our investment thesis is based on
accelerating growth in revenue and profit from various
company-specific drivers, including capacity expansion and
acquisitions. Within a highly fragmented industry with relatively
high barriers to entry, we believe the company's strong market
position, in terms of scale, capacity and track record, provides
relatively good visibility on future earnings. The IPO price
implied a meaningful valuation discount to peers like Daiseki,
which looks to us like a market oversight, allowing us to build a
position in a high-quality company at an attractive price.
In terms of exits, we sold the position in Hoya Corp, which is a
manufacturer of various electro-optical products. Our investment
thesis for Hoya was that there had been a short-term overreaction
by the market when Covid-19 hit in early 2020. This allowed us to
increase our position in the company at a low valuation. Since
then, Hoya has quickly rebuilt its earnings, and its share price
has recovered, prompting us to start reducing the position
gradually. More recently, the risk of a cyclical slowdown in the
global IT market has emerged, which is likely to have a negative
impact on Hoya's glass memory-disk business. Since the valuation
has now returned to its historical range, we decided to sell out of
the remaining position.
We also sold the position in ENEOS Holdings, an integrated
energy holding company that mainly operates refining and marketing
businesses. We had expected the company to maximise cash flow
generation from its existing assets and return that cash to
shareholders. However, ENEOS continues to make fresh investments
including acquisitions, without adequately explaining the deal
rationale to shareholders. As a result, we have become increasingly
concerned about management's capital allocation discipline. Our
engagements with the business have suggested there is reluctance to
change, so we have exited the holding and recycled the proceeds
into higher conviction opportunities, such as those outlined
above.
Outlook
Japan entered 2023 as a clear outlier among developed markets,
in terms of the outlook for economic growth, monetary policy and
inflation. With the domestic economy finally reopening, we see many
companies well-positioned to continue to grow profits in the coming
year and the potential for Japan's GDP to continue to grow above
its long-term trend rate.
After decades of deflation, the Bank of Japan may be the one
major central bank that is happy to see some upward pressure on
inflation. While producer prices have been rising in Japan for some
time, we are now seeing more evidence of companies looking to pass
on these increases to customers, despite consumers remaining very
price-sensitive after two decades of deflation. Nevertheless,
inflationary pressures remain lower in Japan than in the west,
which should allow interest rates to remain relatively low,
providing support for the domestic economy and indeed the stock
market.
Our positive view on Japan for 2023 is also supported by
continuing improvements in corporate governance, which provides the
scope to generate real value for investors. This is partly a
qualitative assessment through our discussions with company
managements, but there are also measurable impacts such as
improving returns on equity and a record level of share buybacks.
These factors improve potential returns for investors, as do
continuing revisions to the Corporate Governance Code and improving
disclosure on sustainability issues. Factors such as these should
allow us to continue to generate interesting stock ideas across the
market-cap spectrum.
We should also note that Japan has entered 2023 with a slightly
lower level of political stability than expected. The strong result
for the ruling Liberal Democratic Party in the Upper House
elections in July 2022 should have provided a strong platform for
Prime Minister Kishida. Since then, however, his public approval
rating has come under increasing pressure as a result of internal
party issues together with his handling of higher living costs.
While any change in prime minister is unlikely before the G7 summit
in May, Mr Kishida may find it harder to survive the second half of
2023. Nevertheless, with the Liberal Democratic Party remaining
dominant, we would expect any successor to maintain the current
policy mix.
On balance, we expect the Japanese economy to be able to sustain
its recovery in 2023, but we do not expect any step change in its
long-term growth rate. Instead, we anticipate that continuing
improvements in corporate governance will lead to better capital
allocation disciplines and corporate restructurings which should,
in turn, generate further improvements to shareholder returns. By
focusing the portfolio towards undervalued businesses capable of
delivering improving returns, and avoiding opportunities that are
less well-placed, we expect these factors to have a strong positive
influence on the Company in the years ahead.
Schroder Investment Management Limited
Principal risks and uncertainties
The principal risks and uncertainties with the Company's
business fall into the following risk categories: strategic;
investment management; financial and currency; custody; gearing and
leverage; accounting, legal and regulatory; service provider; and
cyber. A detailed explanation of the risks and uncertainties in
each of these categories can be found on pages 18 and 19 of the
Company's published annual report and accounts for the year ended
31 July 2022.
The Board has considered the Company's principal risks and
uncertainties and considers that the Company's existing principal
risks and uncertainties are sufficiently comprehensive.
The Company's principal risks and uncertainties have not
materially changed during the six months ended 31 January 2023.
Going concern
Having assessed the principal risks and uncertainties, and the
other matters discussed in connection with the viability statement
as set out on page 20 of the published annual report and accounts
for the year ended 31 July 2022, the Directors consider it
appropriate to adopt the going concern basis in preparing the
accounts.
Related party transactions
There have been no transactions with related parties that have
materially affected the financial position or the performance of
the Company during the six months ended 31 January 2023.
Directors' responsibility statement
The Directors confirm that, to the best of their knowledge, this
set of condensed financial statements has been prepared in
accordance with United Kingdom Generally Accepted Accounting
Practice and, in particular with Financial Reporting Standard 104
"Interim Financial Reporting" with the Statement of Recommended
Practice, "Financial Statements of Investment Companies and Venture
Capital Trusts" issued in July 2022 and that this Interim
Management Report includes a fair review of the information
required by 4.2.7R and 4.2.8R of the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.
Income Statement
for the six months ended 31 January 2023 (unaudited)
(Unaudited) (Unaudited)
For the six months For the six months (Audited)
ended 31 January ended 31 January For the year
2023 2022 ended 31 July 2022
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains/(losses)
on investments
held at fair
value through
profit or loss - 12,757 12,757 - 534 534 - (3,439) (3,439)
Net foreign
currency (losses)/gains - (610) (610) - 465 465 - 2,076 2,076
Income from
investments 4,198 - 4,198 3,921 - 3,921 8,208 - 8,208
Other interest
receivable and
similar income 5 - 5 - - - 3 - 3
Gross return/(loss) 4,203 12,147 16,350 3,921 999 4,920 8,211 (1,363) 6,848
Investment
management fee (300) (700) (1,000) (308) (718) (1,026) (599) (1,399) (1,998)
Administrative
expenses (314) - (314) (319) - (319) (637) - (637)
-------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss)
before finance
costs and taxation 3,589 11,447 15,036 3,294 281 3,575 6,975 (2,762) 4,213
Finance costs (45) (106) (151) (37) (87) (124) (81) (189) (270)
-------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss)
before taxation 3,544 11,341 14,885 3,257 194 3,451 6,894 (2,951) 3,943
Taxation (note
3) (420) - (420) (392) - (392) (821) - (821)
-------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss)
after taxation 3,124 11,341 14,465 2,865 194 3,059 6,073 (2,951) 3,122
-------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Return/(loss)
per share (note
4) 2.57p 9.31p 11.88p 2.35p 0.16p 2.51p 4.97p (2.42)p 2.55p
The "Total" column of this statement is the profit and loss
account of the Company. The "Revenue" and "Capital" columns
represent supplementary information prepared under guidance issued
by The Association of Investment Companies. The Company has no
other items of other comprehensive income and therefore the net
return/(loss) after taxation is also the total comprehensive
income/(loss) for the period.
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued
in the period.
Statement of Changes in Equity
For the six months ended 31 January 2023 (unaudited)
Called-up Capital Warrant Share
share Share redemption exercise purchase Capital Revenue
capital premium reserve reserve reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 July 2022 12,200 7 301 3 91,237 170,347 7,334 281,429
Repurchase of the Company's
own shares for cancellation (38) - 38 - (750) - - (750)
Net return after taxation - - - - - 11,341 3,124 14,465
Dividend paid in the
period (note 5) - - - - - - (5,961) (5,961)
---------------------------- --------- -------- ----------- --------- --------- --------- -------- --------
At 31 January 2023 12,162 7 339 3 90,487 181,688 4,497 289,183
---------------------------- --------- -------- ----------- --------- --------- --------- -------- --------
For the six months ended 31 January 2022 (unaudited)
Called-up Capital Warrant Share
share Share redemption exercise purchase Capital Revenue
capital premium reserve reserve reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 July 2021 12,214 7 287 3 91,540 173,298 6,510 283,859
Repurchase of the
Company's
own shares for
cancellation (7) - 7 - (154) - - (154)
Net return after
taxation - - - - - 194 2,865 3,059
Dividend paid in
the period (note 5) - - - - - - (5,249) (5,249)
----------------------- ---------- --------- ------------ ---------- ---------- ---------- --------- ---------
At 31 January 2022 12,207 7 294 3 91,386 173,492 4,126 281,515
----------------------- ---------- --------- ------------ ---------- ---------- ---------- --------- ---------
For the year ended 31 July 2022 (audited)
Called-up Capital Warrant Share
share Share redemption exercise purchase Capital Revenue
capital premium reserve reserve reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 July 2021 12,214 7 287 3 91,540 173,298 6,510 283,859
Repurchase of the
Company's
own shares for
cancellation (14) - 14 - (303) - - (303)
Net (loss)/return
after taxation - - - - - (2,951) 6,073 3,122
Dividend paid in
the year (note 5) - - - - - - (5,249) (5,249)
----------------------- ---------- --------- ------------ ---------- ---------- ---------- --------- ---------
At 31 July 2022 12,200 7 301 3 91,237 170,347 7,334 281,429
----------------------- ---------- --------- ------------ ---------- ---------- ---------- --------- ---------
Statement of Financial Position
at 31 January 2023 (unaudited)
(Unaudited) (Unaudited) (Audited)
At 31 January At 31 January At 31 July
2023 2022 2022
GBP'000 GBP'000 GBP'000
Fixed assets
Investments held at fair value through
profit or loss 324,533 313,280 313,454
--------------------------------------- -------------- -------------- -----------
Current assets
Debtors 471 958 1,113
Cash at bank and in hand 2,718 7,263 5,626
--------------------------------------- -------------- -------------- -----------
3,189 8,221 6,739
--------------------------------------- -------------- -------------- -----------
Current liabilities
Creditors: amounts falling due within
one year (note 6) (1,062) (1,174) (1,872)
--------------------------------------- -------------- -------------- -----------
Net current assets 2,127 7,047 4,867
--------------------------------------- -------------- -------------- -----------
Total assets less current liabilities 326,660 320,327 318,321
Creditors: amounts falling due after
more than one year (note 7) (37,477) (38,812) (36,892)
--------------------------------------- -------------- -------------- -----------
Net assets 289,183 281,515 281,429
--------------------------------------- -------------- -------------- -----------
Capital and reserves
Called-up share capital (note 8) 12,162 12,207 12,200
Share premium 7 7 7
Capital redemption reserve 339 294 301
Warrant exercise reserve 3 3 3
Share purchase reserve 90,487 91,386 91,237
Capital reserves 181,688 173,492 170,347
Revenue reserve 4,497 4,126 7,334
--------------------------------------- -------------- -------------- -----------
Total equity shareholders' funds 289,183 281,515 281,429
--------------------------------------- -------------- -------------- -----------
Net asset value per share (note 9) 237.77p 230.61p 230.68p
Notes to the Accounts
1. Financial statements
The information contained within the accounts in this half year
report has not been audited or reviewed by the Company's
independent auditor.
The figures and financial information for the year ended 31 July
2022 are extracted from the latest published accounts of the
Company and do not constitute statutory accounts for that year.
Those accounts have been delivered to the Registrar of Companies
and included the report of the auditors which was unqualified and
did not contain a statement under either section 498(2) or 498(3)
of the Companies Act 2006.
2. Accounting policies
Basis of accounting
The accounts have been prepared in accordance with United
Kingdom Generally Accepted Accounting Practice, in particular with
Financial Reporting Standard 104 "Interim Financial Reporting" and
with the Statement of Recommended Practice "Financial Statements of
Investment Trust Companies and Venture Capital Trusts" issued by
the Association of Investment Companies in July 2022.
All of the Company's operations are of a continuing nature.
The accounting policies applied to these accounts are consistent
with those applied in the accounts for the year ended 31 July
2022.
3. Taxation on ordinary activities
The Company's effective corporation tax rate is nil, as
deductible expenses exceed taxable income. The tax charge comprises
irrecoverable overseas withholding tax.
4. Return/(loss) per share
(Unaudited) (Unaudited)
Six months Six months (Audited)
ended ended Year ended
31 January 31 January 31 July
2023 2022 2022
GBP'000 GBP'000 GBP'000
Revenue return 3,124 2,865 6,073
Capital return/(loss) 11,341 194 (2,951)
---------------------------------- ----------- ----------- -----------
Total return 14,465 3,059 3,122
---------------------------------- ----------- ----------- -----------
Weighted average number of shares
in issue during the period 121,782,314 122,089,911 122,078,782
Revenue return per share 2.57p 2.35p 4.97p
Capital return/(loss) per share 9.31p 0.16p (2.42)p
---------------------------------- ----------- ----------- -----------
Total return per share 11.88p 2.51p 2.55p
---------------------------------- ----------- ----------- -----------
5. Dividends paid
(Unaudited) (Unaudited)
Six months Six months (Audited)
ended ended Year ended
31 January 31 January 31 July
2023 2022 2022
GBP'000 GBP'000 GBP'000
----------------------------------------- ----------- ----------- ----------
2022 final dividend paid of 4.9p (2021:
4.3p) 5,961 5,249 5,249
----------------------------------------- ----------- ----------- ----------
No interim dividend has been declared in respect of the six
months ended 31 January 2023 (2022: nil).
6. Creditors: amounts falling due within one year
(Unaudited) (Unaudited) (Audited)
31 January 31 January 31 July
2023 2022 2022
GBP'000 GBP'000 GBP'000
------------------------------------------ ----------- ----------- ---------
Securities purchased awaiting settlement 422 479 1,177
Other creditors and accruals 640 695 695
------------------------------------------ ----------- ----------- ---------
1,062 1,174 1,872
------------------------------------------ ----------- ----------- ---------
7. Creditors: amounts falling due after more than one year
(Unaudited) (Unaudited) (Audited)
ended ended Year ended
31 January 31 January 31 July
2023 2022 2022
GBP'000 GBP'000 GBP'000
Bank Loan 37,477 38,812 36,892
----------- ----------- ----------- ----------
The bank loan is a yen 6.0 billion three-year term loan from
SMBC Bank International plc (formerly Sumitomo Mitsui banking
Corporation Europe Limited), expiring in January 2025 and carrying
a floating interest rate, calculated at the daily Compounded Risk
Free Rate, plus a margin.
8. Called-up share capital
(Unaudited) (Unaudited)
Six months Six months (Audited)
ended ended Year ended
31 January 31 January 31 July
2023 2022 2022
GBP'000 GBP'000 GBP'000
Opening balance of ordinary shares
of 10p each 12,200 12,214 12,214
Repurchase and cancellation of shares (38) (7) (14)
--------------------------------------- ----------- ----------- ----------
Closing balance of ordinary shares
of 10p each 12,162 12,207 12,200
--------------------------------------- ----------- ----------- ----------
Changes in the number of shares in issue during the period were
as follows:
(Unaudited) (Unaudited)
Six months Six months (Audited)
ended ended Year ended
31 January 31 January 31 July
2023 2022 2022
Ordinary shares of 10p each, allotted,
called-up and fully paid
Opening balance of shares in issue 122,000,562 122,143,262 122,143,262
Repurchase and cancellation of shares (375,690) (67,700) (142,700)
---------------------------------------- ------------ ------------ ------------
Closing balance of shares in issue 121,624,872 122,075,562 122,000,562
---------------------------------------- ------------ ------------ ------------
9. Net asset value per share
Net asset value per share is calculated by dividing
shareholders' funds by the number of shares in issue of 121,624,872
(31 January 2022: 122,075,562 and 31 July 2022: 122,000,562).
10. Financial instruments measured at fair value
The Company's financial instruments that are held at fair value
comprise its investment portfolio. At 31 January 2023, all
investments in the Company's portfolio were categorised as Level 1
in accordance with the criteria set out in paragraph 34.22
(amended) of FRS 102. That is, they are all valued using unadjusted
quoted prices in active markets for identical assets (31 January
2022 and 31 July 2022: same).
11. Events after the interim period that have not been reflected
in the financial statements for the interim period
The Directors have evaluated the period since the interim date
and have not noted any significant events which have not been
reflected in the financial statements.
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IR BSGDSIUBDGXX
(END) Dow Jones Newswires
April 14, 2023 02:00 ET (06:00 GMT)
Schroder Japan (LSE:SJG)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Schroder Japan (LSE:SJG)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
