Quarterly Report • Oct 31, 2017
Quarterly Report
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Half-Yearly financial report for the six months ended 31 october 2017
| Group summary |
1 |
|---|---|
| Financial highlights |
2 |
| Chairman's Statement |
3 |
| Investment Manager's Review |
5 |
| Twenty-Five Largest Investments |
9 |
| Portfolio of investments |
10 |
| Portfolio analysis |
13 |
| Condensed income statement |
14 |
| Condensed statement of financial position |
15 |
| Condensed statement of changes in equity |
16 |
| Condensed statement of cash flows |
17 |
| Notes to the Half-Yearly Financial Report |
18 |
| Responsibility Statement of the Directors in respect of the Half-Yearly Financial Report |
23 |
| Information for shareholders |
24 |
| General information |
26 |
The objective of the Company is to achieve above average rates of total return over the longer term and to achieve a growing dividend stream. In pursuit of this objective, the Company's portfolio is actively managed by the Investment Manager and comprises largely UK equities, with selected overseas investments. The Investment Manager takes a stock-specific approach in managing the portfolio and, therefore, sector weightings are of secondary consideration. As a result of this approach the portfolio will not track any stock market index. There is no restriction on the number of investments that can be held in the portfolio.
The Company also invests in unquoted companies. The Investment Management Agreement provides that at the time of investment these investments shall represent no more than 30 per cent of net assets. For the purpose of measuring this, unquoted investments will be measured by the lower of their cost or current valuation.
In addition, the Company can invest up to 30 per cent of its net assets in hedge funds and/or other unregulated collective investment schemes. The Company will not invest more than 15 per cent of its gross assets in other investment companies listed on the main market of the London Stock Exchange.
The capital structure of the Company as at 31 October 2017 consisted of 40,978,267 ordinary shares of 1p each and 6,856,346 subscription shares of 1p each. The Company held 260,706 ordinary shares in treasury as at 31 October 2017.
| Total returns |
Six months ended 31 October 2017 |
|---|---|
| Net asset value per ordinary share |
2.7% |
| Ordinary share price |
4.6% |
| FTSE All-Share Index |
5.9% |
Source: Artemis/Datastream.
| Capital | As at 31 October 2017 |
As at 30 April 2017 |
As at 31 October 2016 |
|---|---|---|---|
| Net assets Net asset value per ordinary |
£151.7m | £150.0m | £127.0m |
| share (diluted) |
366.67p | 361.90p | 308.76p |
| Ordinary share price |
302.00p | 293.50p | 239.00p |
| Gearing | 5.7% | 6.0% | 6.1% |
| Returns for the period |
As at 31 October 2017 |
As at 30 April 2017 |
As at 31 October 2016 |
|---|---|---|---|
| Revenue earnings per ordinary share |
2.66p | 6.31p | 2.56p |
| Capital earnings per ordinary share |
7.39p | 56.70p | 3.33p |
| Ongoing charges |
0.9% | 0.9% | 0.9% |
| Total returns |
1 year |
3 years |
5 years |
10 year |
Since launch* |
|---|---|---|---|---|---|
| Net asset value per ordinary share Ordinary share price |
20.9% 29.2% |
12.9% 9.3% |
25.5% 10.5% |
73.5% 57.1% |
503.7% 416.5% |
| FTSE All-Share Index |
13.4% | 31.0% | 62.5% | 71.0% | 245.7% |
* 1 June 2003 - the date when Artemis was appointed as Investment Manager. Source of data: Artemis/Datastream
In the six months to 31 October 2017 the Company's net asset value per share rose by 2.7% and its share price by 4.6%, compared with an increase in the FTSE All-Share Index of 5.9% (on a total return basis).
The UK market performed less strongly than some other major world markets over the period largely due to the continuing political uncertainty surrounding Brexit and the result of the General Election in June.
Our investments in financial services, and in particular fund management companies, performed well over the half year. Overall, the performance was held back by some individual stocks, most notably Hurricane Energy, an oil exploration company. I am pleased to report that some of our overseas holdings have performed well and that we have added to this part of the portfolio. More detailed information on performance is set out in the Investment Manager's Review which follows.
The unquoted portfolio was largely unchanged over the reporting period, representing an exposure of 25.0% at 31 October 2017. There were no significant transactions or valuation changes in the period. Our fund managers will continue to look for realisation opportunities and remain committed to reducing the overall exposure to unquoted investments.
Revenue earnings per share for the six months to 31 October 2017 were 2.66p, an increase of 3.9% (2016: 2.56p). On 14 December 2017 we declared a first interim dividend of 1.75p per ordinary share (2016: 1.55p) which will be paid
on 26 January 2018, to shareholders on the register at 29 December 2017. This is an increase of 12.9% over the equivalent dividend last year; the Board continues to target a 10% annual increase in the dividend.
The discount continued to narrow, albeit only slightly, and stood at 17.6% at the end of the reporting period.
As I have indicated previously, the Company will buy back shares tactically to address imbalances between supply and demand; on this basis 152,500 ordinary shares were bought back during the period.
As shareholders are aware, the Company is due to have a continuation vote at its annual general meeting in 2018. This is an important matter for the Company and its shareholders and we will be consulting our larger shareholders over the next few months, as we did in the autumn of 2016.
The final exercise date for the subscription shares was 29 December 2017. Following this, 2,707 subscription shares were exercised and the same number of ordinary shares were issued. The independent trustee determined that there was no value attributable to the unexercised subscription shares as the exercise price of 345p per share was higher than the prevailing ordinary share price. Therefore the subscription shares lapsed with no value. The London Stock Exchange listing of the unexercised subscription shares was suspended on 2 January 2018 and this listing, together with the subscription shares themselves, will be cancelled in due course.
Half-Yearly financial report
Following a competitive tender process, the Board has approved the appointment of PricewaterhouseCoopers LLP as the Company's auditor for the year ending 30 April 2018, replacing KPMG LLP.
Shareholder approval of the appointment of PricewaterhouseCoopers LLP as auditor will be sought at the Company's next annual general meeting.
KPMG LLP's appointment ended on 16 January 2018. As required by the Companies Act 2006, a copy of the auditor's resignation letter, including its statement regarding the reasons for its ceasing to hold office, has been circulated to shareholders with the half-yearly financial report.
The uncertainty surrounding Brexit and unsettled political conditions are likely to continue for some time to come. However, as I explained in my statement in July 2017, our fund managers follow a stock-specific investment approach which, while having regard to markets, seeks to deliver returns by identifying promising companies at attractive valuations.
Duncan Budge Chairman 16 January 2018
In the six months under review, the Company's net asset value rose by 2.7% versus a rise of 5.9% in the FTSE All-Share Index.
This performance is disappointing, after improved relative performance in the previous reporting period. It was, to a large extent, the result of particular stocks, together with a drag from the Company's unquoted investments against a rising equity market.
Global stock markets performed strongly over the period, led in particular by the US as investors bet on a large 'reflation trade' following Donald Trump's election. This was seen particularly in financials and technology, with the Nasdaq hitting regular new highs.
In the UK there was continued nervousness around the shape of Brexit and indeed whether Brexit can be delivered at all. Theresa May has now struck a deal with the EU that enables her to move on to the all-important question of our future trading arrangement with Europe once we have formally left the EU.
This undoubtedly created uncertainty for the UK consumer; and certain domestically-focused stocks were notably weak over the period, as they were immediately following the vote for Brexit.
The fund management companies in the portfolio continued to perform strongly, in particular Liontrust following its acquisition and smooth integration of Alliance Trust's unit trust business and Polar Capital, which benefited from strong investment performance across its product range and very strong fund flows.
Elsewhere, and also within the financials sector, strong performances were seen from both Ramsdens and Plus500. Ramsdens, a pawnbroker and foreign currency business,
floated successfully early in 2017 and has substantially exceeded its own expectations, as the sale of foreign currency through its stores has grown substantially. The company currently has 127 stores, predominately in the north-west and Scotland, but there is a strong pipeline of potential new openings.
Plus500, an online trading platform for retail clients, was our top contributor in the period as the shares more than doubled. The company's half-year results significantly exceeded expectations. The company has consistently demonstrated an ability to deploy its marketing spend efficiently to attract new customers across a number of geographic markets; and has benefited from the appetite for trading in crypto-currencies.
Two overseas holdings that performed strongly were Rocket Internet, a conglomerate of internet businesses, and Nintendo, a video games company. Rocket benefited from the successful IPO of one of its largest holdings, Delivery Hero, an online food delivery business. The listing allowed Rocket to realise some of its holding at a significant profit and has also increased the transparency of Rocket's value. Despite a strong year for its portfolio companies, Rocket continues to trade at a material discount to the sum of its parts with more than half of its market value represented by cash.
Nintendo rose by nearly 50% in the period, as demand for its new Switch console surpassed expectations. The company has also continued to demonstrate a renewed vigour for monetising its intellectual property and it announced its first expansion into China and plans for more mobile games.
Sports Direct was also a strong performer in the period as its full year results showed evidence that its strategy to improve its stores was gaining traction with both consumers and suppliers, and generating robust financial returns.
| Market | Contribution % |
|
|---|---|---|
| Plus500 | AIM | 1.2 |
| Ramsdens Holdings | AIM | 0.8 |
| Liontrust Asset Management | LSE | 0.8 |
| Rocket Internet | FWB | 0.8 |
| Gresham Technologies | LSE | 0.7 |
| Market | Contribution % |
|
|---|---|---|
| Hurricane Energy | AIM | (2.3) |
| Vectura Group | LSE | (0.8) |
| Mporium Group | AIM | (0.5) |
| Gaming Realms | AIM | (0.5) |
| LumX Group | SSX | (0.4) |
On the negative side Hurricane Energy was the weakest performer following a significant issuance of both equity and convertible debt which should see the company through to first oil production at the beginning of 2019. In spite of its weak share price performance, the prospects for the company are looking positive. For example, there has been the recent publication of an independent "competent person's report" showing a large increase in the company's resource base to well over 2 billion barrels of oil. We have taken advantage of the weak share price to add to our position, having taken profits earlier in the year.
Another weak performer was Vectura Group, the inhaled airways disease business, which suffered from delays among some of its customers – as well as from a delay in its plans to launch a generic copy of GlaxoSmithKline's popular lung drug, Advair, in the US. We expect this approval to be granted in early 2018 and have been increasing our holding accordingly.
Another disappointment over the period was Augean, which was hit by a large tax claim
relating to the classification of the waste it had been disposing of over several years. The company strongly disputes this assessment and we await further developments.
The three largest purchases in the period were all oil-related stocks chosen mainly for stock specific reasons, but also because we felt the oil price had fallen too far. The largest of these was BP, where we bought a holding because the company appeared to be at an inflection point above which it would be generating free cash, even at \$50 per barrel.
The second largest purchase (as noted above) was Hurricane Energy, where we participated in the equity fund-raising, and the company should now be funded through to first oil production. The other oil related investment was Igas Energy, the owner of a number of onshore oil and gas projects as well as a number of shale licences whose development is funded by the chemical giant Ineos. We made an investment in this business at the time of its financial restructuring which left the company with considerably reduced debt and a valuation that is underpinned by the onshore oil and gas projects – leaving a free option on its shale assets. Igas Energy is the only listed company operating in the UK shale industry. All of the other companies in this space are privately owned.
Other purchases included Mountview Estates, a family-controlled business that owns a large portfolio of assured tenancies which will unwind over time, crystallising value well in excess of the company's stated net asset value; and Revolution Bars, a bar operator whose share price had fallen sharply following a profit warning and which was subsequently the subject of two rejected bid approaches.
We made two new purchases of overseas companies during the period: Dick's Sporting Goods and Fitbit. Dick's Sporting Goods is the dominant sporting goods retailer in the US. The shares were weak as the broader industry suffered from excess inventory leading to a number of bankruptcies. Yet the company has a strong balance sheet, a management team with a large shareholding in the company, and operates in a fragmented market. Our view is that supplier relationships provide an unusual barrier to entry in this industry as supply and product innovation is dominated by Nike and Adidas. Dick's seems well positioned to emerge stronger than before and in a position to consolidate its market share.
Fitbit is the leading provider of wearable fitness devices globally. We purchased a holding following persistent share price weakness, which resulted in almost half of the company's market value being represented by cash and trading on 0.5x sales, less than a quarter of the valuation of peer Garmin. Fitbit has a strong brand and installed base of over 50 million devices which, in our view, should command strategic value. The company has been working on applications of its devices in areas such as diabetes and mental health treatment with very encouraging results. This should drive the long term adoption of wearable devices that currently stands at less than 20% in the US and significantly less internationally. If this were to occur, Fitbit would be well placed to succeed and generate significant profits.
On the sell side, we sold St Modwen Properties and Telford Homes in their entirety, following strong performances. Amongst the financials we took profits across the board by executing partial sales in Liontrust, Polar Capital, City of London, Brewin Dolphin and Charles Stanley.
In addition, two companies were taken over in the period: Market Tech, a Camden property company, which was taken private by its majority shareholder, Teddy Sagi; and Quantum Pharma, a personalised medicine business, which was taken over by Clinigen.
There was limited activity in the unquoted portfolio in the period. RateSetter had positive news as it was granted FCA authorisation; and Reaction Engines won a significant contract with the US government. Elsewhere, detracting from performance were two smaller holdings, Lamp Group and Houseology Design Group, where funds were raised at lower prices resulting in a write-down. The impact of these changes was -0.5%.
Although it has been a relatively quiet period in terms of reducing our unquoted holdings, we are continuing to pursue our strategy of reducing exposure and will continue to work with investee companies to achieve this at valuations which we consider fair and in shareholders' best interests.
We have continued to make progress over the period in reducing the overall number of stocks in the portfolio and increasing the overall level of liquidity in the portfolio. This has been achieved by recycling the cash from selling some of the more illiquid positions into larger companies, including some listed overseas.
At the time of writing, the UK government has now reached agreement to move to phase two of the talks on Brexit. So the risk of a 'no deal' Brexit looks to have diminished substantially. That a number of concessions on previous 'red lines' were made during the negotiations increases our belief that an agreement on a new trade deal can be reached.
Sterling has rallied in response to the talks' progress, taking it to a six-month high versus the euro and a 12-month high versus the dollar. The pound's strength should start to feed through into lower inflation over the next few months, reducing the squeeze on real wages. We will be watching economic data from the UK closely for any signs of an improvement in corporate and
Artemis Alpha trust plc Half-Yearly financial report
consumer confidence. At a stock level, current foreign exchange rates should see the relative earnings momentum between the UK market's overseas and domestic earners reversing at the next reporting season.
The portfolio retains its focus on domestic stocks with a strong franchise, that face a limited threat of disruption and that often pay us a growing yield while we wait for sentiment to improve. Going into 2018, we remain confident about the Company's positioning. In an environment where economic growth globally is strong – and where central banks are starting to withdraw liquidity – we believe that our holdings in financials, and our clear bias towards value, will aid relative performance.
John Dodd & Adrian Paterson Fund managers Artemis Fund Managers Limited
16 January 2018
| Market Value |
% of total |
||
|---|---|---|---|
| Investment | Business activity | £'000 | investments |
| URICA2,3 | Global payment network for SMEs | 7,146 | 4.5 |
| Liontrust Asset Management | Asset management | 6,305 | 4.0 |
| Gleeson (M.J.) Group | Urban regeneration & land trading | 5,977 | 3.8 |
| Polar Capital Holdings1 | Asset management | 5,227 | 3.3 |
| Metapack2 | Delivery optimisation technology | 5,074 | 3.2 |
| Rocket Internet | Online retail & food delivery | 4,984 | 3.1 |
| Avation | Aircraft leasing | 4,579 | 2.9 |
| Claremont Alpha2 | Taiwan casino developments | 4,109 | 2.6 |
| Gresham Technologies | Financial software services | 3,940 | 2.5 |
| Hurricane Energy1 | West of Shetland oil & gas exploration | 3,906 | 2.4 |
| Tesco | Retailer | 3,265 | 2.1 |
| Reaction Engines2 | Rocket propulsion systems | 3,217 | 2.0 |
| Starcount 2 |
Social media data analytics | 3,119 | 2.0 |
| Vectura Group | Drug delivery specialist | 3,000 | 1.9 |
| Ramsdens Holdings1 | Financial services provider & retailer | 2,979 | 1.9 |
| Sports Direct International | UK sports retailer | 2,966 | 1.9 |
| Plus5001 | Online trading platform | 2,614 | 1.6 |
| Gundaline2 | Australian agriculture | 2,598 | 1.6 |
| BP | Global integrated oil & gas company | 2,551 | 1.6 |
| Nintendo | Video games | 2,473 | 1.6 |
| Samarang Asian Prosperity Fund | Asian investment fund | 2,453 | 1.5 |
| Oxford Sciences Innovation2 | Oxford University spin-out companies | 2,200 | 1.4 |
| Fitbit | Provider of health & fitness devices | 2,196 | 1.4 |
| IGas Energy1 | UK onshore gas production | 2,183 | 1.4 |
| Retail Money Market 2 |
Peer-to-peer lender | 2,149 | 1.4 |
| Top 25 investments | 91,210 | 57.6 |
1 AIM quoted investment
2 Unquoted investment
Half-Yearly financial report
| Market | % of | |||
|---|---|---|---|---|
| Country of | Value | total | ||
| Investment | Business activity | incorporation | £'000 | investments |
| Financials | ||||
| Brewin Dolphin Holdings | Private client & wealth management | UK | 971 | 0.6 |
| Charles Stanley | Stockbroking & investment | UK | 2,042 | 1.3 |
| management | ||||
| City of London Investment Group | Emerging markets asset management | UK | 1,957 | 1.2 |
| GLI Finance1 | Peer-to-peer lending investments | UK | 790 | 0.5 |
| Hawk Group2 | SME finance solutions | Luxembourg | – | – |
| Helical | Property development & investment | UK | 1,919 | 1.2 |
| JRP Group | Specialist retirement products & | UK | 1,595 | 1.0 |
| services | ||||
| K3 Capital Group1 | Corporate finance | UK | 713 | 0.4 |
| Lamp Group2 | Healthcare & specialist insurance | UK | 1,104 | 0.7 |
| Liontrust Asset Management | Asset management | UK | 6,305 | 4.0 |
| LumX Group | Asset management | Switzerland | 817 | 0.5 |
| Menhaden Capital | UK-listed investment company | UK | 564 | 0.4 |
| Miton Group1 | Asset management | UK | 1,600 | 1.0 |
| Mountview Estates | Property trading company | UK | 1,878 | 1.2 |
| Newriver REIT (warrants) N+1 Singer2 |
UK retail property investments Stockbroking |
UK UK |
80 1,372 |
0.1 0.9 |
| Orchard Funding Group1 | Professional fee funding solutions | UK | 1,000 | 0.6 |
| Oxford Sciences Innovation2 | Oxford University spin-out companies | UK | 2,200 | 1.4 |
| Park Group1 | Retail vouchers & gift cards | UK | 806 | 0.5 |
| Plus5001 | Online trading platform | UK | 2,614 | 1.6 |
| Polar Capital Holdings1 | Asset management | UK | 5,227 | 3.3 |
| Premier Asset Management 1 |
Asset management | UK | 1,005 | 0.6 |
| Property Franchise Group1 | Estate agent services | UK | 1,584 | 1.0 |
| PRS REIT | Residential rental properties | UK | 627 | 0.4 |
| Ramsdens Holdings1 | Financial services provider & retailer | UK | 2,979 | 1.9 |
| Randall & Quilter1 | Global non-life insurance activities | UK | 291 | 0.2 |
| Retail Money Market 2 |
Peer-to-peer lender | UK | 2,149 | 1.4 |
| Samarang Asian Prosperity Fund | Asian investment fund | Luxembourg | 2,453 | 1.5 |
| Samarang Japan Value Fund | Japan investment fund | Luxembourg | 1,074 | 0.7 |
| URICA2,3 | Global payment network for SMEs | UK | 7,146 | 4.5 |
| Waverton Southeast Asian Fund | Asian investment fund | Luxembourg | 1,791 | 1.1 |
| Total Financials | 56,653 | 35.7 | ||
| Consumer Services | ||||
| Be Heard Group1 | Digital marketing network | UK | 443 | 0.3 |
| Booker Group | Food wholesaler | UK | 1,509 | 0.9 |
| Carpetright | Leading floor coverings & bed retailer | UK | 11 | – |
| Claremont Alpha2 | Taiwan casino developments | Isle of Man | 4,109 | 2.6 |
| Flying Brands | Multi brand home shopping group | Jersey | 39 | – |
| Foot Locker | Global athletic footwear & apparel retailer |
USA | 566 | 0.4 |
| Gaming Realms1 | Online bingo & gaming | UK | 998 | 0.6 |
| Hardlyever2 | Online portal selling pre-owned luxury | UK | 971 | 0.6 |
| goods | ||||
| Maison Seven2 | Online fashion retailing | UK | – | – |
1 AIM quoted investment
2 Unquoted investment
| Country of | Market Value |
% of total |
||
|---|---|---|---|---|
| Investment | Business activity | incorporation | £'000 | investments |
| Consumer Services (continued) Majestic Wine1 Manchester United1 Millennium & Copthorne Revolution Bars ROK Entertainment 2 ROK Global 2 Sports Direct International Starcount Group2 Tesco Zinc Media Group1 |
Specialist wine retailer Football club Hospitality & hotel group UK operator of premium bars Global mobile entertainment group Global mobile entertainment group UK sports retailer Social media data analytics Retailer Media production |
UK UK UK UK USA UK UK UK UK UK |
2,130 19 1,513 1,802 – – 2,966 3,119 3,265 646 |
1.3 – 1.0 1.1 – – 1.9 2.0 2.1 0.4 |
| Total Consumer Services | 24,106 | 15.2 | ||
| Consumer Goods Bovis Homes Group Chateau Lafite Rothschild 20092 Chateau Lafite Rothschild 20102 Chateau Rieussec 20102 Dick's Sporting Goods Dixons Carphone Eve Sleep1 Gundaline2 Hornby1 Houseology Design Group2 Gleeson (M.J.) Group Nintendo Pittards1 Springfield Properties1 |
National housebuilder Physical wine holding Physical wine holding Physical wine holding Sporting goods retailer Specialist electrical & telecommunications retailer Direct to consumer sleep products Australian agriculture Hobby and toy products Home interiors & furniture design Urban regeneration & land trading Video games High performance leather goods Private & affordable property development |
UK France France France USA UK UK Australia UK UK UK Japan UK UK |
1,764 364 313 17 1,289 347 1,138 2,598 824 532 5,977 2,473 2,149 648 |
1.1 0.2 0.2 – 0.8 0.2 0.7 1.6 0.5 0.4 3.8 1.6 1.4 0.4 |
| Total Consumer Goods | 20,433 | 12.9 | ||
| Industrials Augean1 Avation Fox Marble1 Gama Aviation1 IWG MBA Polymers2 Metapack2 Rated People2 Reaction Engines2 Utilitywise1 |
Specialist waste management Aircraft leasing Kosovo marble mining Aviation services Business office facilities Post-consumer recycled plastics producer Delivery optimisation technology Home maintenance services Rocket propulsion systems Energy management solutions |
UK UK UK UK UK USA UK UK UK UK |
1,160 4,579 875 816 1,620 – 5,074 802 3,217 234 |
0.7 2.9 0.6 0.5 1.0 – 3.2 0.5 2.0 0.1 |
| Total Industrials | 18,377 | 11.5 | ||
| Technology Attraqt Group1 Delivery Hero Emis Group1 Fitbit FreeAgent Holdings1 |
Online visual merchandising Online food ordering company Medical software supplier Provider of health & fitness devices Online accounting software provider |
UK Germany UK USA UK |
1,914 1,641 1,684 2,196 740 |
1.2 1.0 1.1 1.4 0.5 |
1 AIM quoted investment
2 Unquoted investment
| Investment | Business activity | Country of incorporation |
Market Value £'000 |
% of total investments |
|---|---|---|---|---|
| Technology (continued) Gresham Technologies Mporium Group1 Rocket Internet |
Financial software services Mobile retail design Online retail & food delivery |
UK UK Germany |
3,940 1,029 4,984 |
2.5 0.6 3.1 |
| Total Technology | 18,128 | 11.4 | ||
| Oil & Gas Africa Oil BP Buried Hill Energy (Cyprus)2 Ceramic Fuel Cells2 Energy Equity Resources (Norway)2 Homeland Renewable Energy2 Hurricane Energy1 IGas Energy1 Lansdowne Oil & Gas1 Leed Resources2 PetroHunter Energy2 Trinity Exploration & Production1 |
East Africa oil & gas exploration Global integrated oil & gas company Turkmenistan oil & gas exploration Electric fuel cells African oil & gas exploration US renewable energy production West of Shetland oil & gas exploration UK onshore gas production Irish gas storage & exploration Natural resources investments US oil & gas exploration Oil & gas exploration |
Canada UK Cyprus Australia UK USA UK UK UK UK USA UK |
935 2,551 627 – – – 3,906 2,183 190 – – 1,706 |
0.6 1.6 0.4 – – – 2.4 1.4 0.1 – – 1.1 |
| Total Oil & Gas | 12,098 | 7.6 | ||
| Health Care Eden Research1 hVIVO1 Oxford Nanopore Technologies2 Physiolab Technologies2,3 Summit 1 Vectura Group |
Agricultural chemicals Vaccine testing Nanopore DNA sequencing Cryotherapy technology Drug development Drug delivery specialist |
UK UK UK UK UK UK |
1,168 374 822 1,327 750 3,000 |
0.7 0.3 0.5 0.8 0.5 1.9 |
| Total Health Care | 7,441 | 4.7 | ||
| Telecommunications Inmarsat Mobile Streams1 |
Mobile satellite communications Mobile content store |
UK UK |
776 24 |
0.5 – |
| Total Telecommunications | 800 | 0.5 | ||
| Basic Materials Duke Royalty1 Eastcoal Ironveld1 |
Mining royalty payment investments Ukranian coal mining South African iron mining |
UK Canada UK |
615 – 113 |
0.3 – 0.1 |
| Total Basic Materials | 728 | 0.4 | ||
| Total equity investments | 158,764 | 99.9 | ||
| Forward currency contracts Buy Sterling 2,399,467 dated 15/02/2018 Sell Australian Dollars 4,000,000 dated 15/02/2018 |
2,399 (2,299) |
1.5 (1.4) |
||
| Total forward currency contracts | 100 | 0.1 | ||
| Total investments | 158,864 | 100.0 |
1 AIM quoted investment
2 Unquoted investment
Large cap – market cap equivalent to FTSE 100 companies; Mid cap – market cap equivalent to FTSE 250 companies; Small cap – market cap equivalent to companies below FTSE 250.
Half-Yearly financial report
| Six months ended 31 October 2017 (unaudited) |
Six months ended 31 October 2016 (unaudited) |
Year ended 30 April 2017 (audited) |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Note | Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
|
| Investment income | 1,387 | – | 1,387 | 1,317 | – | 1,317 | 3,184 | – | 3,184 | |
| Other income | 1 cccccccccccccccccccccccccccccccccccccccccccccccccc |
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|
| Total revenue | 1,388 | – | 1,388 | 1,321 | – | 1,321 | 3,184 | – | 3,184 | |
| Gains on investments | – | 3,624 | 3,624 | – | 1,887 | 1,887 | – | 24,515 | 24,515 | |
| Currency gain | – cccccccccccccccccccccccccccccccccccccccccccccccccc |
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|
| Total income | 1,388 | 3,635 | 5,023 | 1,321 | 1,887 | 3,208 | 3,184 | 24,522 | 27,706 | |
| Expenses | ||||||||||
| Investment management fee | (46) | (410) | (456) | (37) | (332) | (369) | (76) | (688) | (764) | |
| Other expenses | (218) cccccccccccccccccccccccccccccccccccccccccccccccccc |
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(420) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(13) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(433) cccccccccccccccccccccccccccccccccccccccccccccccccc |
|
| Profit before finance | ||||||||||
| costs and tax | 1,124 | 3,209 | 4,333 | 1,074 | 1,547 | 2,621 | 2,688 | 23,821 | 26,509 | |
| Finance costs | (20) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(179) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(199) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(18) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(159) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(177) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(36) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(323) cccccccccccccccccccccccccccccccccccccccccccccccccc |
(359) cccccccccccccccccccccccccccccccccccccccccccccccccc |
|
| Profit before tax | 1,104 | 3,030 | 4,134 | 1,056 | 1,388 | 2,444 | 2,652 | 23,498 | 26,150 | |
| Tax | (13) | – | (13) | 14 | – | 14 | (37) | – | (37) | |
| Profit for the period per ordinary share |
1,091 | 3,030 | 4,121 | 1,070 | 1,388 | 2,458 | 2,615 | 23,498 | 26,113 | |
| Earnings for the period 2 |
2.66p | 7.39p | 10.05p | 2.56p | 3.33p | 5.89p | 6.31p | 56.70p | 63.01p |
The total column of this statement represents the Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations.
| Note | 31 October 2017 (unaudited) £'000 |
31 October 2016 (unaudited) £'000 |
30 April 2017 (audited) £'000 |
|---|---|---|---|
| Non-current assets | |||
| Investments | 158,864 | 134,117 | 156,756 |
| Investment in subsidiary undertaking | 3,094 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvv |
2,528 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvvv |
2,719 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvv |
| 161,958 | 136,645 | 159,475 | |
| Current assets | |||
| Other receivables | 206 | 244 | 645 |
| Cash and cash equivalents | 1,401 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvv |
719 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvvv |
4,012 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvv |
| 1,607 | 963 | 4,657 | |
| Total assets | 163,565 | 137,608 | 164,132 |
| Current liabilities | |||
| Other payables | (1,822) | (2,132) | (1,129) |
| Bank loan | (10,000) ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvv |
(8,500) ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvvv |
(13,000) ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccvvvvvvvvvvvvvvvvv |
| (11,822) | (10,632) | (14,129) | |
| Net assets | 151,743 | 126,976 | 150,003 |
| Equity attributable to equity holders | |||
| Share capital | 481 | 498 | 492 |
| Share premium | 667 | 647 | 657 |
| Special reserve | 50,202 | 50,647 | 50,646 |
| Capital redemption reserve | 109 | 92 | 98 |
| Retained earnings – revenue | 2,072 | 2,020 | 2,928 |
| Retained earnings – capital 5 |
98,212 | 73,072 | 95,182 |
| Total equity | 151,743 | 126,976 | 150,003 |
| Net asset value per ordinary share (undiluted) |
370.30p | 308.76p | 364.72p |
| Net asset value per ordinary share (diluted) |
366.67p | – | 361.90p |
Half-Yearly financial report
for the six months ended 31 october 2017
| Six months ended 31 October 2017 (unaudited) | |||||||
|---|---|---|---|---|---|---|---|
| Share capital £'000 |
Share premium £'000 |
Special reserve £'000 |
Capital redemption reserve £'000 |
Retained earnings Revenue £'000 |
Capital £'000 |
Total £'000 |
|
| At 1 May 2017 | 492 | 657 | 50,646 | 98 | 2,928 | 95,182 | 150,003 |
| Total comprehensive income: Profit for the period Transactions with owners recorded directly to equity: |
– | – | – | – | 1,091 | 3,030 | 4,121 |
| Repurchase of ordinary shares into treasury | – | – | (444) | – | – | – | (444) |
| Cancellation of ordinary shares from treasury | (11) | – | – | 11 | – | – | – |
| Conversion of subscription shares | – | 10 | – | – | – | – | 10 |
| Dividends paid | – | – | – | – | (1,947) | – | (1,947) |
| At 31 October 2017 | 481 | 667 | 50,202 | 109 | 2,072 | 98,212 | 151,743 |
| Six months ended 31 October 2016 (unaudited) | |||||||
|---|---|---|---|---|---|---|---|
| Share capital £'000 |
Share premium £'000 |
Special reserve £'000 |
Capital redemption reserve £'000 |
Retained earnings Revenue £'000 |
Capital £'000 |
Total £'000 |
|
| At 1 May 2016 | 498 | 645 | 53,022 | 92 | 2,000 | 71,684 | 127,941 |
| Total comprehensive income: Profit for the period Transactions with owners recorded directly to equity: |
– | – | – | – | 1,070 | 1,388 | 2,458 |
| Repurchase of ordinary shares into treasury | – | – | (2,375) | – | – | – | (2,375) |
| Conversion of subscription shares Dividends paid |
– – |
2 – |
– – |
– – |
– (1,050) |
– – |
2 (1,050) |
| At 31 October 2016 | 498 | 647 | 50,647 | 92 | 2,020 | 73,072 | 126,976 |
| Year ended 30 April 2017 (audited) | |||||||
|---|---|---|---|---|---|---|---|
| Share capital £'000 |
Share premium £'000 |
Special reserve £'000 |
Capital redemption reserve £'000 |
Retained earnings Revenue £'000 |
Capital £'000 |
Total £'000 |
|
| At 1 May 2016 | 498 | 645 | 53,022 | 92 | 2,000 | 71,684 | 127,941 |
| Total comprehensive income: Profit for the year Transactions with owners recorded directly to equity: |
– | – | – | – | 2,615 | 23,498 | 26,113 |
| Repurchase of ordinary shares into treasury | – | – | (2,376) | – | – | – | (2,376) |
| Cancellation of ordinary shares from treasury | (6) | – | – | 6 | – | – | – |
| Conversion of subscription shares Dividends paid |
– – |
12 – |
– – |
– – |
– (1,687) |
– – |
12 (1,687) |
| At 30 April 2017 | 492 | 657 | 50,646 | 98 | 2,928 | 95,182 | 150,003 |
for the six months ended 31 october 2017
| Six months ended 31 October 2017 (unaudited) £'000 |
Six months ended 31 October 2016 (unaudited) £'000 |
Year ended 30 April 2017 (audited) £'000 |
|
|---|---|---|---|
| Operating activities Profit before tax Interest paid Gains on investments Currency gains |
4,134 199 (3,624) (11) |
2,444 177 (1,887) – |
26,150 359 (24,515) (7) |
| Decrease/(increase) in other receivables Increase/(decrease) in other payables |
211 211 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
61 3 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
(150) (144) ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
| Net cash inflow from operating activities before interest and tax |
1,120 | 798 | 1,693 |
| Interest paid Irrecoverable overseas tax |
cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (199) (13) cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (177) 14 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (359) (37) ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
| Net cash inflow from operating activities |
908 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
635 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
1,297 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
| Investing activities Purchase of investments Sales of investments |
(24,051) 25,904 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
(18,917) 20,891 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
(45,795) 46,574 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
| Net cash inflow from investing activities |
1,853 | 1,974 | 779 |
| Financing activities Repurchase of ordinary shares into treasury Conversion of subscription shares Dividends paid (Decrease)/increase in inter-company loan |
cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (444) 10 (1,947) (2) |
cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (2,447) 2 (1,050) 18 |
ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (2,593) 12 (1,687) 110 |
| Net cash outflow from financing | cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc | cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc | ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
| activities | (2,383) cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
(3,477) cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
(4,158) ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc |
| Net decrease/(increase) in net debt Net debt at the start of the period Effect of foreign exchange rate |
378 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (8,988) |
(868) cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (6,913) |
(2,082) ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (6,913) |
| changes Net debt at the end of the period |
11 cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (8,599) |
– cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (7,781) |
7 ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (8,988) |
| Bank loan Cash and cash equivalents |
cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (10,000) 1,401 |
cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (8,500) 719 |
ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc (13,000) 4,012 |
| (8,599) | (7,781) | (8,988) |
Half-Yearly financial report
The Half-Yearly Financial Report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', the provisions of the Companies Act 2006 and with the guidance set out in the Statement of Recommended Practice for Investment Trust Companies and Venture Capital Trusts ("SORP") issued by the Association of Investment Companies in November 2014.
The Half-Yearly Financial Report has been prepared under the same accounting policies as the Annual Financial Statements for the year ended 30 April 2017.
| Six months ended 31 October 2017 |
Six months ended 31 October 2016 |
Year ended 30 April 2017 |
|
|---|---|---|---|
| Earnings per ordinary share is based on: Revenue earnings (£'000) Capital earnings (£'000) |
1,091 3,030 |
1,070 1,388 |
2,615 23,498 |
| Total earnings (£'000) | 4,121 | 2,458 | 26,113 |
| Weighted average number of ordinary shares in issue during the period (basic and diluted) |
41,006,257 | 41,750,646 | 41,443,082 |
| As at 31 October 2017 |
As at 31 October 20161 |
As at 30 April 2017 |
|
|---|---|---|---|
| Net asset value per ordinary share is based on: Net assets (£'000) |
151,743 | 126,976 | 150,003 |
| Number of shares in issue at the end of the period (basic) |
40,978,267 | 41,125,090 | 41,127,975 |
| Number of shares in issue at the end of the period (diluted) |
47,834,613 | 41,125,090 | 47,987,113 |
1 There was no dilution to the Net Asset Value for the period ended 31 October 2016 relating to the Company's issued subscription shares.
During the period the Company bought back 152,500 shares into treasury (six months ended 31 October 2016: 1,040,706; year ended 30 April 2017: 1,040,706). 2,792 subscription shares were exercised during the period and the same number of ordinary shares were issued in respect of these (six months ended 31 October 2016: 645; year ended 30 April 2017: 3,539).
| Six months ended 31 October 2017 £'000 |
Six months ended 31 October 2016 £'000 |
Year ended 30 April 2017 £'000 |
|
|---|---|---|---|
| Second interim dividend for the year ended 30 April 2016 – 2.50p First interim dividend for the year ended |
– | 1,050 | 1,050 |
| 30 April 2017 – 1.55p | – | – | 637 |
| Second interim dividend for the year ended 30 April 2017 – 2.75p Special dividend for the year ended |
1,127 | – | – |
| 30 April 2017 – 2.00p | 820 | – | – |
| 1,947 | 1,050 | 1,687 |
A first interim dividend for the year ending 30 April 2018 of £717,000 (1.75p per ordinary share) has been declared. This will be paid on 26 January 2018 to those shareholders on the register at close of business on 29 December 2017.
| As at 31 October 2017 £'000 |
As at 31 October 2016 £'000 |
As at 30 April 2017 £'000 |
|
|---|---|---|---|
| Retained earnings – capital (realised) Retained earnings – capital (unrealised) |
90,297 7,915 |
85,339 (12,267) |
87,314 7,868 |
| 98,212 | 73,072 | 95,182 |
The financial information for the six months ended 31 October 2017 and 31 October 2016 has not been audited and does not constitute statutory financial statements as defined in Section 234 of the Companies Act 2006.
The information for the year ended 30 April 2017 has been extracted from the Audited Financial Statements for the year ended 30 April 2017. These financial statements contained an unqualified auditor's report and have been lodged with the Registrar of Companies and did not contain a statement required under Section 498 of the Companies Act 2006.
Half-Yearly financial report
Pursuant to DTR 4.2.7R of the Disclosure Guidelines and Transparency Rules, the principal risks faced by the Company include general market price risk, liquidity risk, regulatory, and financial risks.
These risks, which have not materially changed since the Annual Financial Report for the year ended 30 April 2017, and the way in which they are managed, are described in more detail in the Annual Financial Report for the year ended 30 April 2017 which is available on the website artemisalphatrust.co.uk.
There were no related party transactions during the period. The existence of an independent Board of Directors demonstrates that the Company is free to pursue its own financial and operating policies and therefore, under IAS 24: Related Party Disclosures, the Investment Manager is not considered to be a related party.
IFRS 7 'Financial Instruments: Disclosures' requires an entity to provide an analysis of investments held at fair value through profit and loss using a fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value. The hierarchy used to analyse the fair values of financial assets is set out below.
Level 1 – investments with quoted prices in an active market;
Level 2 – investments whose fair value is based directly on observable current market prices or is indirectly derived from market prices; and
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 are not based on observable market data.
The investments held at the balance sheet date fell in to the categories, Level 1, Level 2 and Level 3. The values in these categories are summarised as part of this note. Any investments that are delisted or suspended from a listed stock exchange are transferred from Level 1 to Level 3.
| As at 31 October 2017 £'000 |
As at 31 October 2016 £'000 |
As at 30 April 2017 £'000 |
|
|---|---|---|---|
| UK quoted investments (Level 1) | |||
| – UK listed | 54,083 | 46,233 | 52,370 |
| – AIM quoted | 46,580 | 43,428 | 53,732 |
| – Preference shares | – | 235 | – |
| Overseas quoted investments (Level 1) | 14,920 | 5,766 | 7,802 |
| Mutual funds (Level 2) | 5,318 | 4,416 | 4,364 |
| Forward currency contracts (Level 2) | 100 | – | 147 |
| Unquoted investments (Level 3) | |||
| – Equities and warrants | 33,609 | 29,677 | 34,200 |
| – Fixed interest | 700 | 3,043 | 587 |
| – Preference shares | 3,554 | 655 | 3,554 |
| – Other | – | 664 | – |
| 158,864 | 134,117 | 156,756 |
The valuation of the Level 3 investments would not be significantly different had reasonably possible alternative valuation bases been applied.
Half-Yearly financial report
Details of the movements in Level 3 assets during the six months ended 31 October 2017 are set out in the table below.
| £'000 | |
|---|---|
| Level 3 investments Opening book cost Opening fair value adjustment |
41,065 (2,724) |
| Opening valuation | 38,341 |
| Movements in the period: Purchases at cost Sales – proceeds Sales – realised gains on sales Increase in fair value adjustment |
552 (217) (857) 44 |
| Closing valuation | 37,863 |
| Closing book cost Closing fair value adjustment |
40,780 (2,917) |
| 37,863 |
The Directors confirm that to the best of their knowledge, in respect of the Half-Yearly Financial Report for the six months ended 31 October 2017:
(b) Disclosure Guidance and Transparency Rule 4.2.8R (related party transactions).
The Half-Yearly Financial Report for the six months ended 31 October 2017 was approved by the Board and the above responsibility statement was signed on its behalf by:
16 January 2018
Half-Yearly financial report
The Company's ordinary shares are traded on the London Stock Exchange and can be bought or sold through a stockbroker. The Company is a qualifying investment trust for ISA purposes.
London Stock Exchange (SEDOL) number: 0435594 ISIN number: GB0004355946 Reuters code: ATS.L Bloomberg code: ATS:LN
London Stock Exchange (SEDOL) number: B5SLGR8 ISIN number: GB00B5SLGR82 Reuters code: ATSS.L Bloomberg code: ATSS:LN
The final exercise date for the subscription shares rights was 29 December 2017. The subscription share stock exchange listing has now been suspended and the listing and the shares themselves will be cancelled in due course.
All administrative enquiries relating to shareholder queries concerning holdings, dividend payments, notification of change of address or loss of certificate should be addressed to the Company's registrars at: Shareholder Services Department, Link Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU or by calling 0871 664 0300 (calls cost 12p per minute plus your phone company's access charge. If you are outside the United Kingdom please call +44 371 664 0300. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 9.00 am – 5.30 pm, Monday to Friday excluding public holidays in England and Wales).
If you would like to receive dividend payments directly into your bank account, please contact the Company's registrar at the address above.
Shareholders are able to re-invest their cash dividends using the Plan operated by Link Registrars (formerly Capita). To find out more about the Plan, including the terms and conditions, please contact Link by calling 0871 664 0300 (calls cost 12p per minute plus your phone company's access charge. If you are outside the United Kingdom please call +44 371 664 0300. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 9.00 am – 5.30 pm, Monday to Friday excluding public holidays in England and Wales).
The Company's net asset value is calculated daily and released to the London Stock Exchange. The ordinary share price is listed in the Financial Times and also on the TrustNet website (trustnet.com). Up to date information can be found on the website (artemisalphatrust.co.uk), including a factsheet which is updated monthly. Shareholders can also contact the Chairman to express any views on the Company or to raise any questions they have using the email address [email protected].
For capital gains purposes, the cost of the Company's ordinary shares at 31 March 1982 was 13.22p per share.
The Company is a member of The Association of Investment Companies ("AIC") which publishes monthly statistics on the majority of investment trusts. Further details can be obtained by contacting the AIC on 020 7282 5555 or at its website theaic.co.uk.
The Company currently conducts its affairs so that the shares in issue can be recommended by financial advisers to ordinary retail investors in accordance with the Financial Conduct Authority's ("FCA") rules in relation to non-mainstream investment products and the Company intends to do so for the foreseeable future. The shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an Investment Trust.
With effect from 1 January 2016 tax legislation requires investment trust companies to provide information to HMRC on certain investors who purchase shares in investment trusts. Accordingly, the Company may have to provide information annually to HMRC on the tax residencies of those certificated shareholders that are tax resident outwith the UK, in those countries that have signed up to the OECD's ('Organisation for Economic Co-operation and Development') Common Reporting Standard for Automatic Exchange of Financial Account Information (the 'Common Reporting Standard'), or the United States (under the Foreign Account Tax Compliance Act, 'FATCA').
All new shareholders, excluding those whose shares are held in CREST, who enter the share register from 1 January 2016 will be sent a certification form from the Registrar to complete. Existing shareholders may also be contacted by the Registrar should any extra information be needed to correctly determine their tax residence.
Failure to provide this information may result in the account being reported to HMRC.
For further information, please see HMRC's Quick Guide: Automatic Exchange of Information – information for account holders: gov.uk/government/publications/exchange-ofinformation-account-holders.
Year End 30 April
Results Announced
Interim: December/January Annual: July
January and August
September/October
Half-Yearly financial report
D W A Budge (Chairman) J A C Ayton J Korner B Bergin T Cross Brown
Cassini House 57 St James's Street London SW1A 1LD
An investment company as defined under Section 833 of the Companies Act 2006.
Registered in England Number: 253644.
Website artemisalphatrust.co.uk
Artemis Fund Managers Limited Cassini House 57 St James's Street London SW1A 1LD
Telephone: 0800 092 2051 Email: [email protected]
The Investment Manager is authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HA.
J.P. Morgan Europe Limited 25 Bank Street Canary Wharf London E14 5JP
Cantor Fitzgerald Europe One America Square 17 Crosswall London EC3N 2LS
J.P. Morgan Europe Limited 25 Bank Street Canary Wharf London E14 5JP
KPMG LLP Saltire Court 20 Castle Terrace Edinburgh EH1 2EG (ceased to hold office on 16 January 2018)
PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX (for the year ending 30 April 2018)
Link Asset Services (formerly: Capita Asset Services) The Registry 34 Beckenham Road Beckenham Kent BR3 4TU
J.P. Morgan Chase Bank N.A. 25 Bank Street Canary Wharf London E14 5JP
Dickson Minto W.S. Broadgate Tower Primrose Street London EC2A 2EW is page is intentionally blank
Half-Yearly financial report
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