RNS Number : 3505X
UIL Limited
21 February 2017
 

Date:                      21 February 2017

 

Contact:                 Charles Jillings                                                               

                                ICM Investment Management Limited                        

                                01372 271 486                                                               

 

 

 

UIL LIMITED

UNAUDITED STATEMENT OF RESULTS

FOR THE SIX MONTHS TO 31 DECEMBER 2016

 

 

 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS

 

 

 

 

·      Revenue return  per ordinary share 2.76p (2.91p)

·      Capital return per ordinary share 20.69p (-11.21p)

·      Total return per ordinary share 23.45p (-8.30p)

·      Dividends per ordinary share 3.75p (3.75p)

·      Annualised dividend yield 5.2% (7.0%)

 

 

Figures in brackets are 31 December 2015

 

             

CHAIRMAN'S STATEMENT

 

I am pleased to report UIL achieved a positive NAV total return of 9.9% in the six months to 31 December 2016. The FTSE All Share Total Return Index was also positive at 12.0%. Since inception UIL has delivered a 229.2% NAV growth versus the FTSE's 198.5%, resulting in a compound annual growth rate of 10.2%.

 

Over the last few years we have been highlighting the rising volatility as the world's major economies diverged. Over the last six months this divergence has continued apace, with the US Federal Bank announcing a 25 basis point increase on 14 December 2016, whilst Europe and Japan continue to pursue quantitative easing ("QE"). These divergences have continued to produce significant economic dislocations which are being exacerbated by a rising global move towards political populism. This combination of factors has seen volatility and price movements across most asset classes and currencies and some surprising outcomes, in particular the Brexit vote in the UK and the election of Donald Trump as US President. The financial global dynamic also continues to be challenged by the emergence of disruptive businesses, with a number of them dominating their markets.

 

All the above has seen a rise in uncertainties and this is likely to accelerate as new political policies are implemented and new relationships formed. While our Investment Managers are bottom up investors and still see significant opportunities, their decisions are made more challenging in this environment.

 

We have seen the US Dollar strengthen by 7.9% against Sterling in the six months to 31 December 2016, with Sterling ending the year near all-time lows against the US Dollar. Oil continues to recover from its lows of last year, rising by 14.4% to end the year at US$56.82 per barrel. Gold declined by 12.9% to US$1,152.27/oz. Iron ore and nickel were up by 41.7% and 6.0% respectively.

 

For UIL it has meant continued positives within its US Dollar based investments and its commodities and energy market investments. The overall result was a positive outcome with the investment portfolio gaining £35.0m over the six months. However, UIL's FX hedges and derivatives position gave rise to losses of £9.0m, reducing the capital account income gains to £25.2m. UIL's NAV rose by over 100.00p to 352.50p in September but fell back to 261.14p as at 31 December 2016.

 

On 31 October 2016, UIL redeemed all the outstanding 2016 ZDP shares. UIL has continued to sell the remaining 2020 and 2022 ZDP shares it holds in the market. Over the six months UIL bought back 0.4m shares. However, UIL will not buy back any further shares until the Scotiabank bridge facility is repaid.

 

The profit on the revenue account in the half year was £2.5m (31 December 2015: £2.7m). The Board has maintained the quarterly dividends of 1.875p per ordinary share, with the second quarterly dividend to be paid on 22 March 2017.

 

OUTLOOK

The divergence of the world's major economies will inevitably lead to higher market volatility and more price movements. Add to that significant changes in trading relationships and rising populism and we can expect continuing volatility. While the world's GDP continues to be positive and may even improve, we must note the world's debt levels continue to rise. The next six months will be challenging. UIL's stock selection focus and portfolio mix should enable UIL and its platforms to identify niche growth investment opportunities.

 

 

Peter Burrows

Chairman

21 February 2017



 

 

INVESTMENT MANAGERS' REPORT

 

UIL's NAV total return was 9.9% over the six months to 31 December 2016 and builds further on the significant gains made by UIL last year. Over the last 18 months UIL's NAV has increased by 61.2%.

 

As noted in the Chairman's Statement, this has been a challenging six months as volatility has continued to rise sharply across most asset classes. We are currently in an investment world where QE is a feature in Europe and Japan, interest rates are rising in the US, most of the developed world's interest rates remain under 2.0% and some one third of developed markets even have negative borrowing rates. Populism continues to rise and was responsible for both the Brexit vote in the UK and Donald Trump's presidential win in the US. Both of these outcomes are essentially challenges to existing world trading relationships. However, it does appear that global GDP is firming and that infrastructure investment will increase, which will be helpful, but we would note borrowings are likely to continue to rise under this scenario and political tensions are increasing. We are concerned that "normalisation" of a number of the above features could increase volatility in the wider markets.

 

Over the six months many currencies firmed against Sterling: the US Dollar was up by 7.9%; the New Zealand Dollar up by 4.6%; and the Australian Dollar up by 4.3%. The markets also strengthened with the FTSE All Share up by 10.2%; the ASX up by 8.7%; the S&P 500 up by 6.7%; and the NZX up by 5.0%.

 

For UIL this has produced pleasing rising asset values and NAVs. However, Sterling's weakness has seen an increased need to meet cash requirements arising from the significant FX positions carried by UIL to hedge out borrowings. The year end position on 30 June 2016 saw a negative derivative position of £13.6m which needed further cash investment on rolling. Over the past 18 months to 31 December 2016, the currency gains of £2.0m were partially offset by the FX hedges.

 

Largely as a result of the FX demands, UIL drew down the Scotiabank bridge facility of £25.0m as cash reserved for the ZDP redemption was utilised to fund the FX hedges.

 

One of Zeta Resources Limited's ("Zeta") investments, New Zealand Oil and Gas ("NZOG"), disposed of its investment in Kupe for NZ$168m in cash and today is estimated to have over NZ$220m in cash, thus enabling it to return significant cash to shareholders, including to Zeta. As a result, UIL is anticipating that Zeta will repay its loans in full before 30 June 2017.

 

Portfolio

There have been two divergent trends. UIL's two largest Fintech investments have performed poorly, with Vix Technology and Touchcorp Limited ("Touchcorp") down by 31.0% and 37.4% respectively. Against this UIL's resource investments were up significantly, with Zeta's shares up by 66.7% over the six months. Overall gains on the investment portfolio were £35.0m, another strong performance.

 

Major Platform Investments

The major platform investments continued to develop over the six months to 31 December 2016.

 

Somers Limited ("Somers") is a financial services sector investment holding company listed on the Bermuda Stock Exchange. Somers' share price was unchanged at US$13.75 in the six months to 31 December 2016. During the period Somers completed the acquisition of a majority shareholding in RESIMAC Limited ("RESIMAC") for US$88.5m. Subsequent to the acquisition, RESIMAC merged with the ASX listed Homeloans Limited ("Homeloans"), which has resulted in Somers becoming a 59.0% shareholder in Homeloans. Homeloans is a leading non-bank lending and multi-channel distribution business in Australia and New Zealand with a loan portfolio in excess of A$8bn and an additional A$5bn under administration. Its primary activities are originating, servicing and securitising mortgage assets. Somers' other two significant investments are Bermuda Commercial Bank Limited ("BCB") (one of Bermuda's four licensed banks), which is a wholly owned investment and a 62.5% interest in Waverton Investment Management Limited ("Waverton"), a UK private wealth manager with £5.0bn of assets under management. For the year ended 30 September 2016 Somers reported a net profit of US$32.3m on total equity of US$230.4m. Somers' diluted NAV per share was US$18.66 as at 30 September 2016 (September 2015: US$17.74). The increase in NAV was despite a 14.2% decrease in the value of Sterling against the US Dollar and was driven primarily by an increased valuation of Waverton resulting from strong financial results in 2016. UIL elected for a Somers scrip dividend in lieu of cash and increased its holding in Somers to 49.8% as at 31 December 2016. During the six months Somers increased its borrowings from UIL by £6.2m to £11.5m. Somers has risen to be UIL's largest investment holding at 16.6%.

 

Utilico Emerging Markets Limited ("UEM") invests in utility and infrastructure assets in the emerging markets and is listed in the UK and traded on the London Stock Exchange. Whilst there was volatility in emerging markets during the period, on balance most emerging markets' stock markets gained in value during the six months to 31 December 2016. Similarly, the majority of major emerging market currencies gained against Sterling, which continued to weaken in response to the EU referendum result.

 

Brazil's recovery was notable, with a 16.9% rise in the Bovespa Index over the six months to 31 December 2016 and its currency gained in value by 6.3% versus Sterling. China's 6.7% GDP growth was more resilient in 2016 than had been predicted earlier in the year. There was however weakness in some markets, including the Philippines, Malaysia and Mexico. The MSCI Emerging Markets Total Return Index in Sterling terms increased by 13.6% over the six months to 31 December 2016. UEM's total NAV return over the same period was 5.6%. UIL realised some 2.8m shares in UEM over the period, reducing its holding by 6.7% and realising £5.6m.

 

Zeta is a resource-focused investment company which is listed on the Australian Stock Exchange. Over the six months to 31 December 2016 Zeta's share price rose by 66.7% to A$0.30.

 

During the six month period commodity prices were mixed. Oil prices rose, with the Brent crude oil price up by 14.4% to US$56.82 per barrel. The gold price was down by 12.9% to US$1,152/oz and the nickel price was up by 6.0%. While commodity prices were mixed, Zeta's net assets per share rose by 46.8% during the period to A$0.45 per share. Zeta's investment in NZOG benefited from a bid for that company's biggest production asset at a cash price exceeding NZOG's market capitalisation. Zeta's shares closed at A$0.30 on 31 December 2016, representing a discount to net tangible assets of 33.4%.

 

During the six months Zeta reduced its borrowings from UIL by £2.8m to £22.5m.

 

Bermuda First Investment Company Limited ("BFIC") is an investment company focused on Bermudan investments; its shares and loan notes are listed on the Bermuda Stock Exchange. Its largest investments are in KeyTech Limited ("KeyTech") (valued at BM$12.6m as at 31 December 2016) and Ascendant (valued at US$9.5m as at 31 December 2016). BFIC's policy is to build strategic investments in local Bermudan companies whilst working closely, where appropriate, with the board and senior management of those companies to increase the long term value of the investments and to encourage the introduction of shareholder friendly initiatives. Both companies are benefiting from an improvement in the Bermuda economy and the prospects for 2017 are encouraging, when Bermuda will host the America's Cup. As such these utility companies are investing significantly in their respective networks in order to drive future growth.

 

Infratil Limited's ("Infratil") share price declined by 14.1% in the six months to 31 December 2016 in a period characterised by the expansion of new investment platforms. Perhaps the most significant development was the demerger of Trustpower into "new" Trustpower and Tilt Renewables ("Tilt"). Under this revised structure, Trustpower will continue to operate as a utilities retailer and hydro generator whilst Tilt will focus on delivering the renewable generation growth opportunity in Australia.

 

In the six months to 30 September 2016, Infratil's net parent surplus from continuing operations was NZ$28.9m, compared with NZ$28.3m in the prior year. Underlying EBITDAF recorded a small decline of 2.8%. Core operations, including Trustpower, Wellington Airport and NZ Bus, were broadly stable. UIL reduced its shareholding in Infratil by 10.7%, realising some £2.7m.

 

MAJOR DIRECT HOLDINGS

Gold production by Resolute in the six months to 31 December 2016 was 170,558oz, up 7.6% on the same period in the prior year, with head grades at Syama better than expected and Ravenswood successfully transitioning to open pit mining. Production cash costs during the period averaged A$934/oz. For the year to June 2017 Resolute has forecast production of 300,000oz at an all-in sustaining cost of A$1,280/oz. Drilling at Nafolo has confirmed a major new gold discovery at Syama, with intercepts showing mineralisation with similar width, grade and characteristics to the 8m ounce Syama orebody.

 

In the six months to 31 December 2016, Resolute sold 94,080oz of gold at an average price of A$1,784/oz, generating a gross operating cash flow of A$122.2m. Cash and bullion on hand and liquid investments were A$282m as at 31 December 2016 (2015: A$75m); total borrowings were A$22m (2015: A$96m). During the period Resolute has announced a resumption of dividends.

 

The share price of Resolute remained almost unchanged during the six months to 31 December 2016, falling slightly from A$1.28 at the end of June 2016 to A$1.27 at the end of December 2016. During the six months UIL sold some 22.9m shares at an average share price of A$1.75, reducing its holding by 18.1% and realising £25.6m.

 

Vix Technology is an unlisted company in which UIL has a 39.8% holding. Vix Technology is a global leader in smart booking, ticketing, payments, real-time information and data management solutions for large-scale transport networks, working with over 200 customers worldwide. Vix Technology leverages more than 25 years of industry experience designing, operating and maintaining proven next-generation ticketing, payment and loyalty platforms to help governments and businesses manage around five billion transactions a year and create new ways to connect with their customers.

 

In the year to 30 June 2016, Vix Technology reported an increase in revenue of 17.9% to US$126.1m, whilst EBITDA was down to negative US$2.8m, as Vix Technology is currently implementing a change in its strategy from being a business that was project focused to being that of product focused. By doing so Vix Technology is ensuring that in the medium term a core Software as a Service ("SaaS") product which is scalable and flexible can be quickly deployed, providing a greater return on investment capital. Such a product will also ensure that Vix Technology is well placed in the long term to be able to compete in the ever evolving highly competitive market. The progress that Vix Technology has made so far in executing its new strategy has been promising. During the six months UIL lent Vix Technology £6.5m to fund its working capital requirements as a result of its investment into its SaaS product development.

 

Touchcorp Limited ("Touchcorp") is a provider of payment systems facilitating the sale of non-physical items (such as mobile phone top-ups, music and gaming vouchers, parking fees and bus tickets) in convenience stores and online. The company has a 27.7% stake in Afterpay, which is a rapidly growing credit product in Australia that allows consumers to pay for purchases in instalments on an interest-free basis. Afterpay is listed on the Australian Stock Exchange and had a market cap of over A$450m as at 31 December 2016.

 

Touchcorp indicated that its revenues and operating profit for the year to 31 December 2016 were expected to be significantly below market expectations. This caused a significant correction in the company's share price, which declined by 37.4% in the six months to 31 December 2016.

 

Very sadly, Touchcorp's CEO, Adrian Cleeve passed away in November. Adrian was the driving force behind Touchcorp's development and growth. He will be missed by all who knew him.

 

Optal Limited ("Optal") is a developer of global payment systems with a particular focus on the travel industry. The company owns a 23.5% stake in eNett, which owns a system that allows travel agents to book hotels, flights and car hire using a Mastercard Virtual Account created solely for that transaction. eNett continues to grow rapidly, with revenues in the three months to September 2016 of US$113m, which was 72% higher than reported for the same period in 2015.

 

Optal is looking to diversify into business payments in other verticals.

 

Optal is an unlisted company and its shares, previously been held by Vix Investments, were distributed to the shareholders of Vix Investments.

 

Augean plc ("Augean") is a UK-based company providing specialist waste management services across a variety of industries. Augean's shares performed strongly in the six months to 31 December 2016, rising by 19.6% over the period. In its interim results to 30 June 2016, total revenues increased by 17.6% and EBITDA increased by 15.1%, buoyed by higher landfill volumes.

 

The company's Energy & Construction business benefited from a strong recovery in Air Pollution Control Residues volumes, which rose by an impressive 44.9%. The high-margin nature of these activities translated to equally impressive EBITDA growth for the division, despite a more modest performance in hazardous waste. Growth here more than offset weakness in Radioactive Waste Services, where EBITDA has been eroded by contracting low-level radioactive waste volumes and in North Sea Services, which continue to be impacted by the challenging market backdrop.

 

PORTFOLIO ACTIVITY

During the six months to 31 December 2016 UIL invested £47.0m and realised £60.3m, including £25.6m from its investments in Resolute, £5.6m from its investments in UEM and £2.7m from its investments in Infratil.

 

The geographical split, on a look-through basis, saw Australia increase to 21.4% of the total investments (June 2016: 17.9%), mainly as a result of the increased valuation of Zeta. In the sector split, technology rose to 23.0% (June 2016: 21.0%), mainly as a result of Sterling's weakness.

 

LEVEL 3 INVESTMENTS

UIL's investments in level 3 companies rose by £21.2m. This was mainly due to three factors: increased lending to Vix Technology to fund working capital as a result of its SaaS product development; a £5.1m valuation increase in Optal; and new investments of £5.6m.

Platform loans remained relatively flat at £35.0m, an increase of 3.2%. The Somers loan increased by approximately £6.2m mainly to fund investments made by Somers. This increase was offset by a £2.8m repayment on the Zeta loan and repayment of £2.3m of the loans to Vix Investments as part of the Optal distribution.

 

GEARING

Gearing has declined over the year to 31 December 2016 from 157.7% to 103.5%. Our medium term gearing target remains at 100.0%.

 

ZDP SHARES

The 2016 ZDP shares were redeemed in full on 31 October 2016. On 8 July 2016, UIL issued 14.0m 2020 ZDP shares and placed out 10.8m, raising £13.8m. Since then, UIL has sold an additional 1.9m 2020 ZDP shares, with 1.3m being retained on UIL's balance sheet as at 31 December 2016 with a market value of £1.7m. In addition, UIL sold 3.5m 2022 ZDP shares it held on its balance sheet raising £3.8m and as at 31 December 2016 retained 5.5m 2022 ZDP shares with a market value of £6.0m.

 

The average yield to maturity on the placings were 4.0% for the 2020 ZDP shares and 5.1% for the 2022 ZDP shares. UIL expects to place the remaining 2020 and 2022 ZDP shares held before its current year end.

 

DEBT

Bank debt rose from £24.7m as at 30 June 2016 to £75.0m as at 31 December 2016, primarily to fund the 2016 ZDP share redemption.

 

As at 31 December 2016 the Scotiabank facilities were fully drawn down in Sterling. The term of the £50.0m loan facility with Scotiabank is until 22 March 2018.

 

UIL drew down the Scotiabank bridging facility of £25.0m to fund the 2016 ZDP redemption. UIL expects to repay the facility in full before its financial year end.

 

DERIVATIVES

During the six months to 31 December 2016 there was minimal investment in the S&P put option position, although there continued to be significant currency hedges. As at 31 December 2016 these were A$185.5m, NZ$88.3m, US$65.1m and €22.5m. These generated a loss on the capital account of £9.0m (December 2015: loss of £4.8m).

 

REVENUE RETURN

Revenue total income rose by 4.8% from £4.5m to £4.8m. Management and administration fees and other expenses increased from £0.9m to £1.5m mainly as a result of higher asset values and the management fee reverting to 0.5% (previously 0.25%). Finance costs remained constant at £0.7m (December 2015: £0.8m). The combined effect resulted in revenue profit decreasing to £2.5m from £2.7m. EPS reduced to 2.76p from 2.91p.

 

CAPITAL RETURN

Capital total income was positive £25.2m (December 2015: negative £4.0m). This represented gains on investments of £35.0m, offset by derivative and FX losses of £9.8m. The finance costs were £6.5m (December 2015: £6.3m).

 

The resultant profit for the six months to 31 December 2016 on the capital return was £18.7m (December 2015: loss of £10.3m) and the EPS gain was 20.69p (December 2015: loss of 11.21p).

 

EXPENSE RATIO

The ongoing charges figure, excluding performance fees, reduced to 2.0% from 2.6%, mainly as a result of the average increase in shareholders' funds.

 

 

 

ICM Investment Management Limited and ICM Limited

21 February 2017



 

HALF-YEARLY FINANCIAL REPORT AND RESPONSIBILITY STATEMENT

 

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

 

PRINCIPAL RISKS AND UNCERTAINTIES

Most of UIL's principal risks and uncertainties are market related and are similar to those of other investment companies investing mainly in listed equities in developed countries.

 

The principal risks and uncertainties were described in more detail under the heading "Principal Risks and Risk Mitigation" within the Business Review section of the Annual Report and Accounts for the year ended 30 June 2016 and have not changed materially since the date of that report.

 

The principal risks faced by UIL include not achieving long-term total returns for its shareholders, the adverse impact gearing could have, the sudden withdrawal of its bank facility, loss of key management and losses due to inadequate controls of third party service providers.

 

The Annual Report and Accounts is available on the Company's website, www.uil.limited

 

RELATED PARTY TRANSACTIONS

Details of related party transactions in the six months to 31 December 2016 are set out in note 12 to the Report and Accounts and details of the fees paid to the Investment Managers are set out in note 2 to the Report and Accounts.

 

Directors' fees were increased with effect from 1 July 2016 to:

Chairman £43,000 per annum

Chair of Audit £41,000 per annum

Directors £31,800 per annum

 

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with Chapter 4 of the Disclosure Guidance and Transparency Rules, the Directors confirm that to the best of their knowledge:

 

• The condensed set of financial statements contained within the report for the six months to 31 December 2016 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 half-yearly financial report, together with the Chairman's Statement and Investment Managers' Report, includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the financial statements as required by DTR 4.2.7R;

• The Directors' statement of principal risks and uncertainties above is a fair review of the principal risks and uncertainties for the remainder of the year as required by DTR 4.2.7R; and

• The half-yearly report includes a fair review of the related party transactions that have taken place in the first six months of the financial year as required by DTR 4.2.8R.

 

On behalf of the Board

Peter Burrows

Chairman

21 February 2017



 

UNAUDITED GROUP PERFORMANCE SUMMARY 


Half-year

31 Dec

2016

Half-year

31 Dec

2015

Annual

30 Jun

2016

% change

Jun-Dec

2016

NAV total return(1) (%)

9.9

(2.2)

47.1

n/a

Annual compound NAV total return

(since inception)(2) (%)

 

10.2

 

7.4

 

9.9

 

n/a

NAV per ordinary share (pence)

261.14

161.48

241.12

8.3

Ordinary share price (pence)

143.50

107.50

130.75

9.8

Discount (%)

45.0

33.4

45.8

n/a

Ordinary annualised dividend yield (%)

5.2

7.0

5.7

(25.7)

FTSE All-Share Total Return Index

6,424

5,502

5,737

12.0

Zero dividend preference ("ZDP") shares(3) (pence)





2016 ZDP shares





Capital entitlement per ZDP share

n/a

181.85

188.31

n/a

ZDP share price

n/a

189.25

191.00

n/a

2018 ZDP shares





Capital entitlement per ZDP share

141.18

131.65

136.32

3.6

ZDP share price

154.38

144.50

147.25

4.8

2020 ZDP shares





Capital entitlement per ZDP share

118.43

110.43

114.35

3.6

ZDP share price

133.50

124.13

130.00

2.7

2022 ZDP shares





Capital entitlement per ZDP share

103.20

n/a

100.12

3.1

ZDP share price

109.75

n/a

104.50

5.0

Equity holders' funds (£m)





Gross assets(4)

471.6

377.2

440.7

7.0

Bank debt

75.0

52.1

24.7

203.6

ZDP shares

160.8

178.7

197.4

(18.5)

Equity holders' funds

235.8

146.4

218.6

7.9

Revenue account (£m)





Income

4.8

4.5

10.5

6.7(5)

Costs (management and other expenses)

1.5

0.9

1.9

66.7(5)

Finance costs

0.7

0.8

1.7

(12.5) 5)

Financial ratios of the Group (%)





Revenue yield on average gross assets

2.2(6)

2.4(6)

2.9

n/a

Ongoing charges figure excluding performance fees(7)

2.0(6)

2.6(6)

3.3

n/a

Ongoing charges figure including performance fees(7)

2.8(6)

2.6(6)

3.3

n/a

Bank loans, net bank overdraft and

ZDP shares gearing on net assets

 

103.5

 

157.7

 

101.6

 

n/a

Returns and dividends (pence)





 

Revenue return per ordinary share

2.76

2.91

6.23

(5.2) (5)

 

Capital return per ordinary share

20.69

(11.21)

68.45

(284.6) (5)

 

Total return per ordinary share

23.45

(8.30)

74.68

(382.5) (5)

 

Dividends per ordinary share

3.75

3.75

7.50

-  (5)

 

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

(2)  Since inception includes data relating to Utilico Investment Trust plc, UIL's predecessor, which started trading in August 2003

(3)  Issued by UIL Finance Limited, a wholly owned subsidiary of UIL

(4)  Gross assets less current liabilities excluding loans and ZDP shares

(5)  Percentage change based on comparative six month period to 31 December 2015

(6)  For comparative purposes the figures have been annualised

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

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

 

UNAUDITED CONDENSED GROUP INCOME STATEMENT

 







for the six months to 31 December



2016



2015


Revenue

Capital

Total

Revenue

Capital

Total


return

return

return

return

return

return


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s








Gains on investments

-

35,006

35,006

-

3,223

3,223

Losses on derivative financial instruments

-

(8,999)

(8,999)

-

(4,752)

(4,752)

Foreign exchange (losses)/gains

(66)

(789)

(855)

23

(2,446)

(2,423)

Investment and other income

4,830

-

4,830

4,521

-

4,521

Total income

4,764

25,218

29,982

4,544

(3,975)

569

Management and administration fees

(852)

-

(852)

(417)

-

(417)

Other expenses

(616)

(2)

(618)

(480)

(1)

(481)

Profit/(loss) before finance costs and

taxation

3,296

25,216

28,512

3,647

(3,976)

(329)

Finance costs

(669)

(6,507)

(7,176)

(842)

(6,279)

(7,121)

Profit/(loss) before taxation

2,627

18,709

21,336

2,805

(10,255)

(7,450)

Taxation

(129)

-

(129)

(146)

-

(146)

Profit/(loss) for the period

2,498

18,709

21,207

2,659

(10,255)

(7,596)








Earnings per ordinary share  - pence

2.76

20.69

23.45

2.91

(11.21)

(8.30)

 

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

All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of the Company. There are no minority interests.

 



UNAUDITED CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY

 

for the six months to 31 December 2016







Ordinary

Share


Non-





share

premium

Special

distributable

Capital

Revenue



capital

account

reserve

reserve

reserves

reserve

Total


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

Balance at 30 June 2016

9,065

20,031

233,866

32,069

(86,928)

10,482

218,585

Profit for the period

-

-

-

-

18,709

2,498

21,207

Ordinary dividends paid

-

-

-

-

-

(3,388)

(3,388)

Shares purchased by the

Company

 

(35)

 

(563)

 

-

 

-

 

-

 

-

 

(598)

Balance at 31 December 2016

9,030

19,468

233,866

32,069

(68,219)

9,592

235,806

 

 

 

for the six months to 31 December 2015







Ordinary

Share


Non-





share

premium

Special

distributable

Capital

Revenue



capital

account

reserve

reserve

reserves

reserve

Total


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

Balance at 30 June 2015

9,856

28,414

233,866

32,069

(149,255)

11,608

166,558

(Loss)/profit for the period

-

-

-

-

(10,255)

2,659

(7,596)

Ordinary dividends paid

-

-

-

-

-

(3,400)

(3,400)

Shares purchased by the

Company

 

(791)

 

(8,384)

 

-

 

-

 

-

 

-

 

(9,175)

Balance at 31 December 2015

9,065

20,030

233,866

32,069

(159,510)

10,867

146,387

 

 

 

 

for the year to 30 June 2016







Ordinary

Share


Non-





share

premium

Special

distributable

Capital

Revenue



capital

account

reserve

reserve

reserves

reserve

Total


£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

Balance at 30 June 2015

9,856

28,414

233,866

32,069

(149,255)

11,608

166,558

Profit for the year

-

-

-

-

62,327

5,673

68,000

Ordinary dividends paid

-

-

-

-

-

(6,799)

(6,799)

Shares purchased by the

Company

 

(791)

 

(8,383)

 

-

 

-

 

-

 

-

 

(9,174)

Balance at 30 June 2016

9,065

20,031

233,866

32,069

(86,928)

10,482

218,585

 



UNAUDITED CONDENSED GROUP BALANCE SHEET

 


31 Dec 2016

31 Dec 2015

30 Jun 2016


£'000s

£'000s

£'000s

Non-current assets




Investments

473,943

373,416

452,197

Current assets




Other receivables

646

1,836

2,945

Derivative financial instruments

6,094

366

1,067

Cash and cash equivalents

253

6,139

174


6,993

8,341

4,186

Current liabilities




Loans

(25,000)

(52,088)

-

Other payables

(9,247)

(695)

(1,101)

Derivative financial instruments

(56)

(3,867)

(14,637)

Zero dividend preference shares

-

(86,448)

(61,327)


(34,303)

(143,098)

(77,065)

Net current liabilities

(27,310)

(134,757)

(72,879)

Total assets less current liabilities

446,633

238,659

379,318

Non-current liabilities




Loans

(50,000)

-

(24,699)

Zero dividend preference shares

(160,827)

(92,272)

(136,034)

Net assets

235,806

146,387

218,585





Represented by




Ordinary share capital

9,030

9,065

9,065

Share premium account

19,468

20,030

20,031

Special reserve

233,866

233,866

233,866

Non-distributable reserve

32,069

32,069

32,069

Capital reserves

(68,219)

(159,510)

(86,928)

Revenue reserve

9,592

10,867

10,482

Total attributable to equity holders

235,806

146,387

218,585





Net asset value per ordinary share




Basic - pence

261.14

161.48

241.12





 



 

 

UNAUDITED CONDENSED GROUP STATEMENT OF CASH FLOWS

 


Six months to

Six months to

Year  to


31 December

 2016

31 December 2015

30 June 2016


£'000s

£'000s

£'000s

Cash flows from operating activities

1,933

3,510

4,217

Investing activities




Purchases of investments

(43,874)

(32,114)

(46,049)

Sales of investments

60,490

29,064

65,169

Purchases of derivatives

(28,607)

(2,235)

(8,302)

Sales of derivatives

-

4,147

3,022

Cash flows from investing activities

(11,991)

(1,138)

13,840

Cash flows before financing activities

(10,058)

2,372

18,057

Financing activities




Equity dividends paid

(3,388)

(3,400)

(6,799)

Movement on loans

46,800

15,757

(11,483)

Cash flows from issue of ZDP shares

19,538

-

12,435

Cash flows from redemption of ZDP shares

(62,741)

-

-

Cost of shares purchased for cancellation

(598)

(9,175)

(9,174)

Cash flows from financing activities

(389)

3,182

(15,021)





Net (decrease)/increase in cash and cash equivalents

(10,447)

5,554

3,036

Cash and cash equivalents at the beginning

of the period

 

(114)

 

1,225

 

1,225

Effect of movement in foreign exchange

2,646

(640)

(4,375)

Cash and cash equivalents at the end of the period

(7,915)

6,139

(114)





Comprised of:




Cash

253

6,139

174

Bank overdraft

(8,168)

-

(288)

Total

(7,915)

6,139

(114)

 



 

NOTES

 

The Directors have declared a second quarterly dividend in respect of the year ending 30 June 2017 of 1.875p per ordinary share payable on 22 March 2017 to shareholders on the register at close of business on 10 March 2017. The total cost of this dividend, which has not been accrued in the results for the six months to 31 December 2016, is £1,693,000 based on 90,297,208 ordinary shares in issue at the date of this report.

 

The half-yearly report is available on the website www.uil.limited and will be posted to shareholders at the beginning of March 2017. 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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