RNS Number : 2213Y
Utilico Investments Limited
19 February 2013
 



Date:                19 February 2013

 

Contact:           Charles Jillings                                              

                        Utilico Investments Limited                             

                        01372 271 486                                               

 

 

 

Utilico Investments Limited

Unaudited Statement of Results

for the six months to 31 December 2012

 

 

 

 

 

 

 

 

 

Financial Highlights

 

 

 

 

·      Net asset value total return per ordinary share of 11.7% over the six months

·      Average annual compound total return of 11.4% since inception

·      Revenue earnings per share up 14.1% on the prior half year

·      Interim dividend of 3.75p, up 7.1% on the prior half year and special dividend of 2.50p, resulting in total interim dividends of 6.25p



 

 

CHAIRMAN'S STATEMENT

 

I am pleased to report that over the six months to 31 December 2012, Utilico Investments Limited ("Utilico" or "the Company") achieved a net asset value ("NAV") total return per ordinary share of 11.7%. Over the same period the FTSE All-Share Total Return Index rose by 8.7%.

 

Since August 2003 (the launch of Utilico Investment Trust plc, the Company's predecessor), Utilico's NAV per ordinary share plus cumulative dividends of 31.95p has increased by 164.1%, resulting in an average annual compound total return per ordinary share of 11.4%. The FTSE All-Share Total Return Index achieved 8.1% compound annual growth during the same period.

 

This increase in the Company's NAV does not reflect the volatility over the period. In the first quarter to 30 September 2012, the Company achieved a NAV per ordinary share total return of 23.3%, but in the three months to 31 December 2012 the NAV per ordinary share total return fell by 9.4%. The majority of this volatility was attributable to Resolute Mining Limited ("Resolute"), reflecting concerns about the situation in Mali, where Resolute's Syama mine is located.

 

Following discussions with the Investment Manager, the Board has supported the establishment of two new Bermudan listed strategic investment vehicles. The first, Bermuda National Limited ("BNL"), in which Utilico holds 45.0%, will bring together a number of financial services investments, including the 100% ownership of Bermuda Commercial Bank Limited ("BCB") previously 35% owned by Utilico and the second, Bermuda First Investment Company Limited ("BFIC"), which will hold a number of investments in Bermudan companies, including the holdings in Ascendant Group Ltd ("Ascendant") and Keytech Limited ("Keytech") which were previously owned by Utilico. Utilico has also announced since the half year, that it has entered into agreements to combine a number of its resource investments with Kumarina Resources Limited ("Kumarina"), an Australian based resources company with copper and gold projects in Western Australia, to form an active Australian listed resource holding and development group, Zeta Resources Limited.

 

We see the benefit of these investment vehicles providing a sharper focus on the investment opportunities within their narrower mandates.

 

Revenue earnings per share ("EPS") remain strong at 7.46p in the six months to 31 December 2012, up 14.1% from 6.54p in the previous comparable period as a result of increased dividend income. The Directors have decided to declare an interim dividend of 3.75p per ordinary share, an increase of 7.1% over the previous half year. We have also declared a special dividend of 2.50p per ordinary share, which reflects the higher level of income received in the period, including the dividends from New Zealand Oil & Gas Limited, BNL and the maiden dividend from Resolute Mining Limited.

 

The 2012 zero dividend preference ("ZDP") shares were redeemed in full on 31 October 2012 at a cost of £69.8m, with the funds for the redemption coming from the placing of further 2018 ZDP shares for cash, the £50.0m bank facility with Scotiabank Europe plc and cash raised from portfolio realisations.

 

I would like to thank my fellow Directors for their continuing support and valued input and contribution.

 

Outlook

While a number of economic challenges remain, the global markets are responding positively to the various governmental initiatives. Our portfolio has reacted to this and performed well over the last six months.

 

 

 

Dr Roger Urwin
19 February 2013

 

 



 

INVESTMENT manager's REPORT

 

Utilico has again performed well in the six months to 31 December 2012 with a positive NAV total return of 11.7%, outperforming the FTSE All-Share Index total return of 8.7% over the same period. The average annual compound return since inception is 11.4%.

 

Portfolio

The total investments increased by £43.3m to £466.6m mainly driven by gains on investments of £27.0m. The top ten increased over the six months as a proportion from 59.9% to 61.9% as a result of stronger gains in these holdings. Within the top ten there were significant movements with Jersey Electricity plc down from fifth to ninth as a result of a weaker share price and a reduction in the holding. BNL has entered the list following its takeover of BCB. Utilico previously held 35.0% of BCB and now holds 45.0% of BNL. Keytech which was just outside the top ten has moved to seventh on a stronger share price and US Dollar exchange rate.

 

As with previous periods, in order to provide a better understanding of Utilico's underlying investments, the ten largest holdings and sector and geographical analysis are presented on a "look through" basis as though investments held by Infratil, UEM and BFIC were held on a proportionate basis by Utilico itself.

 

BFIC is a new investment vehicle holding a number of investments in Bermudan companies, including Keytech and Ascendant which were previously held directly by Utilico.

 

Utilico holds over 50.0% of BFIC and as such, it is consolidated within Utilico's interim accounts. As a result, Utilico's assets are increased by £3.4m and the minority interest is recorded as "Non-controlling interests" in the balance sheet. There is minimal impact on the profit and loss account as BFIC was only incorporated in September 2012.

 

In January 2013, Utilico announced the formation of Zeta Resources Limited ("Zeta") and the proposal to reverse certain assets into Zeta and for Zeta to merge with Kumarina.

 

The purpose behind the formation of Zeta and BNL in particular, is to seek to replicate the success over recent years of Infratil and UEM. By having an asset focused investment mandate these two vehicles should both attract capital and management teams who are best placed to invest in these sectors. We believe there are significant investment opportunities to the strategic long term investor in both these asset classes.

 

Resolute Mining Limited ("Resolute") continued to improve operational performance in the six months from June to December 2012. During the period, gold production reached 222,943oz, an increase of 20.5% year-on-year. Cash costs increased by 5.7% in the period to an average of A$783/oz, and are expected to remain high due to expansion of the Syama operations. In the year to June 2013 Resolute has forecast production of 415,000oz at an average cash cost of A$830/oz, up from 398,450oz at a cash cost of A$758/oz last year.

 

In August 2012, Resolute declared a maiden dividend of A$0.05 paid to shareholders in November 2012.

 

In the six months to December 2012, Resolute sold 205,892oz of gold at an average price of A$1,616/oz. Gold sales were less than production during the six months due to the build-up of gold in circuit at Syama mine. Resolute's balance sheet remains healthy with cash and bullion of A$108m as at 31 December 2012. In the period Resolute bought back 22.3m shares at an average price of A$1.49 per share. Utilico also sold 5.4m shares at an average price of A$1.94 in the period, thus maintaining its equity interest at just under 20.0%.

 

Over the six months Resolute's share price increased by 21.5% to A$1.64, though the share price remains volatile given the insurgency in northern Mali. Syama is located 300km south-east of the capital Bamako and operations have been unaffected by the military initiatives in the North.

 

Trust Power Limited ("TPW") reported a modest increase in profitability in the six months to end-September 2012, with EBITDA growth of 2.8%. This was a solid performance in the context of a decline in customer numbers and electricity sales volumes in New Zealand, where competition remains intense. Hydro and wind energy generation in New Zealand was affected by climatic conditions, though output at Snowtown in Australia improved. Construction of the 270MW Snowtown II wind farm project started during the period, and is due for commissioning in November 2014. In the six months to December 2012 TPW's share price increased by 11.6%.

 

Bermuda National Limited ("BNL") is an unregulated investment holding company whose major asset is Bermuda Commercial Bank Limited ("BCB"). BNL acquired BCB in October 2012 and shareholders in BCB became shareholders in BNL on a one for one basis. BNL's strategy is to make investments and acquisitions in the financial services sector and in addition to BCB, BNL has a number of other investments in the sector. For the year ended 30 September 2012, BCB reported a profit before tax of US$7.5m (2011: US$2.6m) on total assets of US$572.0m (2011: US$532.0m) with shareholders' funds of US$104.8m (2011: US$82.9m). BCB's capital ratio of 23.3% is significantly above international standards and proposed Basel III capital levels.

 

Vix Group ("Vix") continued to make good progress over the six months, in line with expectations.

 

Infratil Energy Australia Pty Ltd ("IEA") has made excellent progress, with customer numbers at its electricity and gas retailing business Lumo increasing by 13.9% and EBITDA growth of 55.6% in the six months to September 2012. This improvement in the retail business in part reflects a weaker wholesale electricity market, which has limited production at its peaking generation facilities and Perth Energy subsidiary. IEA has correspondingly shelved expansion of generation assets at present.

 

Renewable Energy Generation Limited ("REG")continues to make progress. In the six months to December 2012 REG commissioned the 10MW Sancton Hill and the 6MW South Sharpley wind farms, increasing installed capacity by almost 40%. This resulted in energy generation growth of +14.9% to 64GWh, although higher operating costs resulted in EBITDA dropping 12% in the period.  Falling turbine and equipment prices have helped improve returns for wind farm operators, but the lack of clarity on long-term subsidies continues to impact negatively on investment into the renewables sector. Longer-term REG is well positioned to take advantage of any increase in UK wholesale electricity prices which may occur as ageing baseload power stations are closed down. REG's share price increased by 3.3% during the period.

 

Post period end REG announced a strategic partnership with Blackrock which included the sale of two wind farms with total capacity of 16MW for £32.1m. At c.£2m per MW this demonstrates the inherent value of the business, with proceeds from the sale being reinvested both into new projects and a share buyback. This is a very positive development which has been reflected in the share price, which increased materially post-announcement.

 

Keytech Limited ("Keytech") is the incumbent telephone company in Bermuda, providing fixed line voice, broadband and directory services. It has associate stakes in Bermuda Cablevision (Cable TV) and CellOne (mobile telephony). The company also has operations in the Cayman Islands. In the six months to September 2012, the company reported a 9.6% fall in revenues, although a combination of cost cutting and strong performances from associate investments resulted in a significant improvement in underlying net profits compared to 2011.

 

From September 2012, the company is no longer subject to the "60/40" rule, whereby 60% of the company's stock was required to be held by Bermudan investors. Keytech's share price gained 2.5% during the period.

 

New Zealand Oil & Gas Ltd ("NZOG") is an independent New Zealand oil & gas exploration and production company, with exposure to two relatively low cost production assets in New Zealand: the Kupe gas and oil field (15% partner) and Tui area oil fields (12.5% partner). In addition, NZOG also has an exploration portfolio in New Zealand, Indonesia and Tunisia. NZOG is listed on both the New Zealand and Australian stock exchanges. The company has increased its staffing levels to position itself as the joint venture partner of choice for foreign oil companies looking to participate in offshore New Zealand oil and gas exploration, and also to win further exploration blocks as they are made available by the New Zealand Government. Full year June 2012 results showed a 9.3% increase in revenue year-on-year at NZ$116.4m and EBITDA up 23.8% at NZ$68.1m. Net income was NZ$19.9m. NZOG has substantial cash reserves, which management has recently indicated may be committed to exploration activities over the next five years, but in the meantime offer little return. Our preference would be for a substantial return of cash to shareholders, perhaps in the form of a buy back, with the company coming back to the market for capital only when the money is needed.

 

Jersey Electricity plc ("JEL") reported poor results for the year to September 2012. Revenues decreased 3.3% year-on-year reflecting weak demand in energy sales which failed to be offset by a 2.9% tariff increase in May 2012. The greatest impact to business has been the permanent loss of one of its two subsea connections to France, which not only has led to the business relying more heavily on expensive diesel-based generation, but has also seen a one-off £1.6m uninsured cost element on decommissioning. This has resulted in EBITDA dropping 20.5% year-on-year.

 

The company is looking to install a new subsea interconnector by 2015 with a total investment of £70m, on top of further investment in diesel engines of £10m through Q2 2013. We remain concerned that the company is unable to maintain a fair return on its current assets and provide an adequate return for this significant increase in capex. At the same time this expenditure will see significant leverage added to the balance sheet which has historically been healthily net cash positive. JEL's share price performed very poorly in the six months to December 2012, falling 21.5%.

 

Z Energy Limited is Infratil's 50% owned joint venture with the New Zealand Superannuation Fund, which operates over 200 service stations as well as refining, pipelines and terminal infrastructure in New Zealand. Whilst retail competition remains aggressive in a mature market, Z Energy delivered good improvements in operational efficiency. Z Energy continues to focus on improved efficiency, including plans to construct additional storage and terminal facilities to improve resilience of fuel supplies and lower shipping costs.

 

Portfolio Activity

During the six months Utilico invested £59.7m and realised £43.4m of which £6.7m was from the reduction in the Resolute position. The geographic and sectoral weightings have remained broadly in line with the position at 30 June 2012. The exception being Bermuda which has seen its geographic weighting increase to 12.0% from 9.0% as a result of further investment into BNL. This also resulted in an increase in the Financial Services sector. The UK and Channel Islands reduced mainly as a result of the reduction in the JEL position.

 

The gross assets comprise mainly listed and traded investments. These are marked to market to the bid price. The unlisted holdings are based on Directors' valuations. The unlisted holdings account for 7.5% of the gross assets (Dec 2011: 7.8%).

 

Bank Debt

The bank debt was drawn in full during the six months. £45.0m was used to finance the redemption of the 2012 ZDP shares and £5.0m was used for investment into the portfolio. This was all drawn in Sterling.

 

ZDP shares

During the six months Utilico redeemed the outstanding 2012 ZDP shares in full at a cost of £69.8m. To fund this Utilico raised £17.0m from the placing of a new issue of 2018 ZDP shares in the market and used £45.0m of its bank facility. The balance of £7.8m came from portfolio realisations.

 

At the time of placing the 2018 ZDP shares in the market, Utilico Finance also placed 12.3m 2018 ZDP shares with Utilico. Utilico has since sold 2.3m of these into the market. The sale prices have been above the accumulated capital value.

 

Hedging

The hedging gains last year were reversed this year as markets firmed and the position eroded. Utilico ended the year with a net S&P500 put option position with a carrying value of £2.6m.

 

Utilico has maintained currency hedges to partially protect the Sterling value of certain investments. At the period end, forward currency sale contracts were in place for a nominal NZ$126.0m, €11.9m and A$11.3m. This level of protection reflects the Investment Manager's view that Sterling is likely to be stronger rather than weaker against certain currencies of Utilico's investments.

 

Revenue Return

Total income rose 15.1% mainly as a result of dividends from NZOG and BNL and a maiden dividend from Resolute. This resulted in an annualised revenue yield on average gross assets of 4.7%.

 

Other expenses at £0.8m are significantly higher than last year, due in part to increased professional expenses associated with BFIC and other corporate actions by Utilico.

 

Finance costs reduced due to lower average borrowings and lower interest rates. The combined effect of the above resulted in the revenue EPS rising 14.1% to 7.46p.

 

Capital Return

Gains in investment of £27.0m were in line with the prior year. However the reversal in derivative gains resulted in total income reducing to £24.3m (31 December 2011: £30.5m). This contributed to a capital EPS for the six months of 17.15p.

 

Expense Ratio

The ongoing charges ratio was 2.0%, up marginally from the previous period as a result of increased expenses.

 

 

 

ICM Limited
19 February 2013



 

 

INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT

 

The Chairman's Statement and the Investment Manager's Report give details of the important events which have occurred during the period and their impact on the financial statements.

 

Principal risks and uncertainties

The principal risks faced by the Company include:

• Inappropriate long-term investment strategy

• Asset allocation

• Excessive gearing

• Loss of management personnel

 

The Board reported on the principal risks and uncertainties faced by the Company and the way they are mitigated are described in more detail under the heading "Internal Controls and Management of Risk" in the Corporate Governance section of the Annual Report and Accounts for the year ended 30 June 2012. In the view of the Board, there have not been any changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

 

The Annual Report and Accounts is published on the Company's website, www.utilico.bm

 

Related Party Transactions

Details of related party transactions in the six months to 31 December 2012 are set out in Note 11 to the Notes to the Accounts, and details of the fees paid to the Investment Manager are set out in Note 2 to the Notes to the Accounts.

 

There has been no change in the Directors in the period under review. There has been no change in the level of fees paid to the Directors since the year end.

 

Directors' responsibility statement

• The Disclosure and Transparency Rules ("DTR") of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements.

 

The Directors confirm to the best of their knowledge that:

• the condensed set of financial statements contained within the report for the six months to 31 December 2012 has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and gives a true and fair view of the assets, liabilities, financial position and return of the Group;

 

• the interim management report, together with the Chairman's Statement and Investment Manager's Report, include a fair review of the information required by 4.2.7R and 4.2.8R of the FSA's Disclosure and Transparency Rules.

 

The half yearly financial report was approved by the Board on 19 February 2013 and the above responsibility statement was signed on its behalf by the Chairman.

 

 

Dr Roger Urwin

for and on behalf of the Board

 

 

 

 

 

 

 



 

 

UNAUDITED CONSOLIDATED PERFORMANCE SUMMARY

 

31 Dec

2012

31 Dec

2011

30 Jun

2012

Half year change

Ordinary shares

 

 

 

 

Total return(1)

11.7%(2)

15.3%(2)

7.3%

n/a

Annual compound total return (since inception)

11.4%

12.3%

10.8%

n/a

Net asset value per ordinary share

230.77p

229.29p

209.67p

10.1%

Share prices and indices

 

 

 

 

Ordinary share price

162.75p

159.00p

144.00p

13.0%

Discount

29.5%

30.7%

31.3%

n/a

FTSE All-Share Total Return Index

4,458

3,970

4,101

8.7%

Zero dividend preference (ZDP) shares (3)

 

 

 

 

2012 ZDP shares

 

 

 

 

Capital entitlement per ZDP share

n/a

167.77p

173.52p

n/a

ZDP share price

n/a

172.25p

175.50p

n/a

2014 ZDP shares

 

 

 

 

Capital entitlement per ZDP share

147.44p

137.45p

142.33p

3.6%

ZDP share price

157.50p

147.87p

154.00p

2.3%

2016 ZDP shares

 

 

 

 

Capital entitlement per ZDP share

147.44p

137.45p

142.33p

3.6%

ZDP share price

161.38p

147.25p

148.50p

8.7%

2018 ZDP shares

 

 

 

 

Capital entitlement per ZDP share

106.73p

n/a

103.03p

3.6%

ZDP share price

111.00p

n/a

104.00p

6.7%

Equity attributable to Group (£m)

 

 

 

 

Gross assets (4)

471.2

427.2

434.5

8.4%

Bank debt

50.0

17.9

-

n/a

ZDP shares

180.8

178.9

224.4

(19.4%)

Other debt

7.1

1.3

1.2

n/a

Equity attributable to Group

233.3

229.1

208.9

11.7%

Revenue account (£m)

 

 

 

 

Income

9.8

8.5

15.9

n/a

Costs (management and other expenses)

1.8

1.4

3.0

n/a

Finance costs

0.3

0.6

0.8

n/a

Financial ratios of the Group (5)

 

 

 

 

Revenue yield on average Gross Assets

4.7%

4.1%

4.0%

n/a

Ongoing charges figure(6) on average gross

assets

 

2.0%

 

1.7%

 

1.7%

 

n/a

Bank loans, other loans and ZDP shares

gearing on net assets

 

101.7%

 

89.2%

 

105.7%

 

n/a

 

 

Six months to

Six months to

Returns and dividends

 

31 Dec 12

31 Dec 11

Revenue return per ordinary share

 

7.46p

6.54p

Capital return per ordinary share

 

17.15p

24.38p

Total return per ordinary share

 

24.61p

30.92p

Dividend per ordinary share

 

3.75p(7)

3.50p

Special dividend per ordinary share

 

2.50p(7)

-

(1)  Total return is calculated as change in NAV per ordinary share, plus dividends reinvested.

(2)  For the six months to 31 December.

(3)  Issued by Utilico Finance Limited, a wholly owned subsidiary of Utilico Investments Limited, in June 2007.

(4)  Gross assets less current liabilities excluding loans.

(5)  For comparative purposes the total ongoing charges and revenue figures have been annualised.

(6)  Expressed as a percentage of average net assets. Ongoing charges comprise all operational, recurring costs that are payable by the

Company or suffered within underlying investee funds, in the absence of any purchases or sales of investments.

(7) The interim and special dividends declared have not been included as a liability in these accounts.

 

UNAUDITED CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

for the six months to 31 December

 

 

2012

 

 

2011

 

Revenue

Capital

Total

Revenue

Capital

Total

 

return

return

Return

return

return

return

 

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

 

 

 

 

 

 

 

Gains on investments

-

27,042

27,042

-

27,680

27,680

Losses/gains on derivative instruments

-

(2,713)

(2,713)

-

2,502

2,502

Gains/(losses) on foreign exchange

69

(1)

68

-

353

353

Investment and other income

9,724

-

9,724

8,511

-

8,511

Total income

9,793

24,328

34,121

8,511

30,535

39,046

Management and administration fees

(1,103)

-

(1,103)

(962)

-

(962)

Other expenses

(710)

(5)

(715)

(395)

(1)

(396)

Profit before finance costs and taxation

7,980

24,323

32,303

7,154

30,534

37,688

Finance costs

(312)

(7,405)

(7,717)

(616)

(6,173)

(6,789)

Profit before taxation

7,668

16,918

24,586

6,538

24,361

30,899

Taxation

(177)

-

(177)

(4)

-

(4)

Profit for the period

7,491

16,918

24,409

6,534

24,361

30,895

Profit for the period attributable to:

 

 

 

 

 

 

  Equity holders of the Company

7,430

17,085

24,515

6,534

24,361

30,895

  Non-controlling interest

61

(167)

(106)

-

-

-

 

7,491

16,918

24,409

6,534

24,361

30,895

 

 

 

 

 

 

 

Earnings per ordinary share  - pence

7.46

17.15

24.61

6.54

24.38

30.92

 

The total column of this statement represents the Group's Condensed Income Statement and the Group's Condensed Statement of Comprehensive Income, prepared in accordance with IFRS.

The supplementary revenue returns and capital returns are prepared under guidance published by the Association of Investment Companies in the UK.

The Group does not have any income or expense that is not included in the profit for the period, and therefore the 'profit for the period' is also the 'total comprehensive income for the period', as defined in International Accounting Standard 1 (revised).

All items in the above statement derive from continuing operations. Bermuda First Investment Company Limited was acquired in the period.

The acquisition is presented for the first time in these financial statements.

 

 

 

 



UNAUDITED CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY

 

for the six months to 31 December 2012








Ordinary

Share


Non-



Non-



share

premium

Special

distributable

Capital

Revenue

controlling



capital

account

reserve

reserve

reserves

reserve

Interest

Total


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

Balance at 30 June 2012

9,963

29,743

233,866

32,069

(108,055)

11,308

-

208,894

Profit for the period

-

-

-

-

17,085

7,430

(106)

24,409

Ordinary dividends paid

-

-

-

-

-

(3,487)

-

(3,487)

Increase in non-controlling

interest

 

-

 

-

 

-

 

-

 

-

 

-

 

3,496

 

3,496

Balance at 31 December 2012

     9,963

  29,743

   233,866

32,069

(90,970)

     15,251

     3,390

   233,312

 

for the six months to 31 December 2011








Ordinary

Share



Non-





share

premium

Special

Warrant

distributable

Capital

Revenue



capital

account

reserve

reserve

reserve

reserves

reserve

Total


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

Balance at 30 June 2011

9,993

30,250

233,866

3,049

32,069

(113,833)

6,083

201,477

Profit for the period

-

-

-

-

-

24,361

6,534

30,895

Ordinary dividends paid

-

-

-

-

-

-

(3,248)

(3,248)

Conversion of warrants

-

1

-

-

-

-

-

1

Balance at 31 December 2011

     9,993

  30,251

   233,866

    3,049

32,069

(89,472)

     9,369

   229,125

 

 

 

 

 

for the year to 30 June 2012









Ordinary

Share



Non-





share

premium

Special

Warrant

distributable

Capital

Revenue



capital

account

reserve

reserve

reserve

reserves

reserve

Total


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

Balance at 30 June 2011

9,993

30,250

233,866

3,049

32,069

(113,833)

6,083

201,477

Profit for the year

-

-

-

-

-

2,729

11,970

14,699

Ordinary dividends paid

-

-

-

-

-

-

(6,745)

(6,745)

Conversion of warrants

-

2

-

-

-

-

-

2

Transfer on cancellation

of warrants

 

-

 

-

 

-

 

(3,049)

 

-

 

3,049

 

-

 

-

Shares purchased by the Company

 

(30)

 

(509)

 

-

 

-

 

-

 

-

 

-

 

(539)

Balance at 30 June 2012

9,963

29,743

233,866

-

32,069

(108,055)

11,308

208,894

 

 



UNAUDITED CONDENSED GROUP BALANCE SHEET

 

 

 

 

 

31 December 2012

31 December 2011

30 June 2012

 

£'000s

£'000s

£'000s

Non-current assets

 

 

 

Investments

466,582

426,697

423,243

Current assets

 

 

 

Other receivables

1,762

4,359

6,056

Derivative financial instruments

3,690

4,155

4,739

Cash and cash equivalents

1,106

973

8,246

 

6,558

9,487

19,041

Current liabilities

 

 

 

Loans

(3,585)

(1,256)

(1,253)

Other payables

(1,752)

(8,249)

(5,437)

Zero dividend preference shares

-

(76,313)

(66,275)

Derivative financial instruments

(207)

(751)

(2,304)

 

(5,544)

(86,569)

(75,269)

Net current assets/(liabilities)

1,014

(77,082)

(56,228)

Total assets less current liabilities

467,596

349,615

367,015

Non-current liabilities

 

 

 

Bank and other loans

(53,457)

(17,868)

-

Zero dividend preference shares

(180,827)

(102,622)

(158,121)

Net assets

233,312

229,125

208,894

 

 

 

 

Represented by:

 

 

 

Ordinary share capital

9,963

9,993

9,963

Share premium account

29,743

30,251

29,743

Special reserve

233,866

233,866

233,866

Warrant reserve

-

3,049

-

Non-distributable reserve

32,069

32,069

32,069

Capital reserves

(90,970)

(89,472)

(108,055)

Revenue reserve

15,251

9,369

11,308

Total attributable to equity holders

229,922

229,125

208,894

Non-controlling interest

3,390

-

-

Total equity attributable to Group

233,312

229,125

208,894

 

 

 

 

Net asset value per ordinary share

 

 

 

Basic - pence

230.77

229.29

209.67

 



 

UNAUDITED CONDENSED GROUP STATEMENT OF CASH FLOWS

 

 

Six months to

Six months to

Year  to

 

31 December 2012

31 December 2011

30 June 2012

 

£'000s

£'000s

£'000s

Cash flows from operating activities

(2,064)

9,421

2,453

Cash flows from investing activities

-

-

-

Cash flows before financing activities

(2,064)

9,421

2,453

Financing activities:

 

 

 

Equity dividends paid

(3,487)

(3,248)

(6,745)

Movement on loans

52,360

(13,216)

(31,551)

Cash flows from issue of ZDP shares

16,826

(279)

40,240

Cash flows from redemption of ZDP shares

(67,801)

-

(2,007)

Proceeds from warrants exercised

-

1

2

Cost of ordinary share buyback

-

-

(539)

Cash flows from financing activities

(2,102)

(16,742)

(600)

 

 

 

 

Net decrease in cash and cash equivalents

(4,166)

(7,321)

1,853

Cash and cash equivalents at the beginning of the period

4,879

1,293

1,293

Effect of movement in foreign exchange

1

(171)

1,733

Cash and cash equivalents at the end of the period

714

(6,199)

4,879

 

 

 

 

Comprised of:

 

 

 

Cash

1,106

973

8,246

Bank overdraft

(392)

(7,172)

(3,367)

Total

714

(6,199)

4,879

 

NOTES

1. SIGNIFICANT ACCOUNTING POLICIES

The unaudited condensed Group Accounts have been prepared in accordance with International Financial Reporting Standards ('IFRS'), IAS 34 'Interim Financial Reporting' and the accounting policies set out in the audited statutory accounts of the Group for the year ended 30 June 2012.

 

The following additional accounting policies applied in the period to 31 December 2012:

Consolidation

The Group Financial Statements incorporate the assets, liabilities, results and cash flows of the Company and its subsidiaries. The results of subsidiaries acquired or sold during the period are included in the consolidated results from the date of acquisition or up to the date of disposal. Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions are eliminated in preparing the Group Financial Statements.

 

Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are presented separately in the Group Statement of Comprehensive Income and within equity in the Group Balance Sheet, separately from parent shareholders' equity.

 

2. DIVIDENDS

The Directors have declared an interim dividend in respect of the six months to 31 December 2012 of 3.75p per ordinary share and a special dividend of 2.50p per ordinary share, payable on 10 April 2013 to shareholders on the register at close of business on 8 March 2013. The total cost of these dividends, which have not been accrued in the results for the six months to 31 December 2012, is £6,227,000 based on 99,632,214 ordinary shares in issue at the date of this report.

 

 

The half-yearly report is available on the website www.utilico.bm and will be posted to shareholders at the beginning of March 2013. Copies may be obtained during normal business hours from Exchange House, Primrose Street, London, EC2A 2NY.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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