TIDMBTEM
RNS Number : 2852G
British Empire Trust PLC
26 May 2017
BRITISH EMPIRE TRUST PLC
Announcement of unaudited results for the half year ended 31
March 2017
OBJECTIVE
The investment objective of the Company is to achieve capital
growth through a focused portfolio of investments, particularly in
companies whose shares stand at a discount to estimated underlying
net asset value.
FINANCIAL HIGHLIGHTS
- Net asset value ('NAV') per share on a total return basis
increased by 15.0%
- Share price total return 13.0%
- Benchmark index(1) increased by 10.8%
- Interim dividend maintained at 2.0p
PERFORMANCE SUMMARY
Net asset value per share (total return) for six months to
31 March 2017(2) 15.0%
Share price total return for six months to 31 March 2017 13.0%
% change
since 30
30 September September
31 March 2017 31 March 2016 2016 2016
Indices
MSCI All Country World ex-US
Index (GBP adjusted total
return) 429.48 328.64 387.51 10.8
MSCI All Country World ex-US
Value Index (GBP adjusted
total return) 260.46 192.99 227.08 14.7
Morningstar Investment Trust
Global Growth Index(3) 213.76 163.15 191.09 11.9
MSCI All Country World Index
(GBP adjusted total return) 699.80 526.28 621.20 12.7
Share Price Discount
(difference between share
price
and net asset value)(4) 11.43% 12.74% 9.64%
Six months Six months
to to
31 March 2017 31 March 2016
Earnings and Dividends
Investment income GBP3.46m GBP7.07m
Revenue earnings per share 0.89p 3.91p
Capital earnings per share 91.52p 28.04p
Total earnings per share 92.41p 31.95p
Ordinary dividends per share 2.00p 2.00p
Ongoing Charges Ratio (annualised)
Management, marketing and
other expenses (as percentage
of average net asset value) 0.88% 0.91%
Period Highs/Lows High Low
Net asset value per share 770.91p 673.85p
Net asset value per share
(debt at fair value) 770.72p 668.21p
Share price (mid market) 686.50p 600.00p
(1) The lead benchmark is the MSCI All Country World ex-US
Index.
(2) As per guidelines issued by the Association of Investment
Companies ('AIC'), performance is calculated using net asset values
per share inclusive of accrued income and debt marked to fair
value.
(3) The Morningstar Investment Trust Global Growth Index (total
return basis), formerly known as Fundamental Data Global Growth
Investment Trust Index, is subject to revision and the figures are
as at 9 May 2017.
(4) As per guidelines issued by the AIC, the discount is
calculated using the net asset value per share inclusive of accrued
income and with the debt at fair value.
Buy-backs and Cancellation
During the period, the Company purchased 5,698,000 Ordinary
Shares, all of which have been placed into treasury. 30,487,924
Ordinary Shares held in treasury were cancelled.
CAPITAL STRUCTURE
as at 31 March 2017
The Company's capital structure comprises Ordinary Shares,
Debenture Stock and Unsecured Loan Notes.
Mid market
price Market value Fair value
120,170,665* Ordinary Shares 662.00p GBP795.53m -
GBP15,000,000 8(1) /(8) % Debenture 129.75p GBP19.46m -
Stock 2023
GBP30,000,000 4.184% Series A Sterling
Unsecured Loan 2036 104.94p** - GBP31.48m
3.249% Series B Euro
EUR30,000,000 Unsecured Loan 2036 103.63c** - EUR31.09m
-------------- ------------------------- ----------- ------------- -----------
* Excluding 9,355,500 shares held in treasury.
** Unlisted unsecured loan notes valued at fair value determined
by reference to prevailing market interest and exchange values.
CHAIRMAN'S STATEMENT
I am pleased to report a further six months of strong investment
performance by Asset Value Investors ('AVI'), with a net asset
value total return of 15.0%. This exceeded the return of our
benchmark by some 4.2 percentage points; it also comfortably
exceeded the return of the MSCI All Country World Index and the
average return of our peer group.
The Investment Manager's Report sets out the drivers of these
investment returns in detail but, from your Board's perspective, it
was encouraging to see that outperformance was driven largely by
strong stock selection and from the closing of some substantial
discounts to underlying value in several of our investee companies,
helped by some significant corporate activity. The weighted average
discount in the underlying portfolio, which at 30 September 2016
was 32%, stood at 26% at 31 March 2017. The current level is still
substantially wider than the level experienced over a decade
ago.
It is equally encouraging to note that money which has been
realised has been successfully invested in further opportunities
and the pipeline of potential investments remains interesting.
It is important to emphasise the fact that, as I said in last
year's Annual Report, there has been no change in AVI's fundamental
value investing style.
The discount to NAV at which the Company's shares stood at the
half year end was 11.4% (year end 9.6%). We have continued to buy
back shares to limit volatility in the discount and have bought
back 5,698,000 shares in the period under review, increasing the
NAV by 0.55%, and a further 526,000 shares (at 23 May) since the
half year end. 30,487,924 shares held in treasury were cancelled
during the period.
The unchanged interim dividend of 2.0 pence per share, which is
not covered by earnings in this half year, will be paid on 30 June
2017. The net revenue in the portfolio is lower in the period under
review than in the equivalent period last year. As I have noted in
previous years, the Board remains of the view that the primary
focus of AVI should be on seeking superior investment returns and
that this should not be compromised by setting a particular income
target. The Company does have substantial revenue reserves.
On 23 March 2017, we announced the appointment of Calum Thomson
as a Director of the Company with effect from 1 April 2017, as part
of the Board's long-term succession planning. Andrew Robson, the
current Chairman of the Audit Committee, will retire from the Board
on 31 May 2017, following publication of this Half Yearly Report.
Andrew joined the Board in October 2008 and has made an outstanding
contribution to the Company throughout his tenure. The Board would
like to record its appreciation of his work over the years and
wishes him well in the future. He will be replaced as Audit
Committee Chairman by Calum with effect from 1 June 2017. Calum is
a qualified accountant and for the past 21 years has been an audit
partner at Deloitte LLP, specialising in the asset management
sector. He is also a director of a number of other companies in the
financial services sector.
Immediately after the period under review, on 3 April, we
announced the appointment of Jefferies Hoare Govett, a division of
Jefferies International Limited ('Jefferies'), as the Company's
corporate broker and financial adviser. We have also appointed
Jefferies to execute the Board's ongoing share buyback
programme.
All resolutions at the Company's AGM on 20 December 2016 were
duly carried with large majorities in favour of each resolution.
Your Board would like to thank shareholders for their continued
support.
AVI continues to identify interesting investment opportunities
where the returns to investors are not especially dependent on
domestic or international politics and where the involvement of the
manager can itself contribute to a positive outcome. We are
confident that there is a considerable store of value in the
Company's investments and that AVI will continue to find
fundamental value in the years ahead.
As ever when investment performance is strong, a word of caution
is warranted - and indeed few would have predicted both Mr Trump's
victory in the US presidential election and the subsequent strong
performance of equity markets. It remains difficult to predict
levels of economic growth and, in particular, equity market
returns, against a background of continued uncertainty over the
details of the UK's exit from the European Union and elections in
several European countries in the coming months and, of course, the
UK in June. Our Manager's primary focus remains one of finding
fundamental value and, despite the political background noise, your
Board remains confident that they will continue to do so.
Strone Macpherson
Chairman
25 May 2017
INVESTMENT MANAGER'S REPORT
Performance Summary
Following the strong performance which we reported over the
course of the full financial year to 30 September 2016, it is
pleasing to report another such period. NAV total returns for the
six months to 31 March 2017 are as follows:
-- British Empire +15.0%
-- MSCI All Country World ex-US Index +10.8%
-- MSCI All Country World Index +12.7%
-- Morningstar Investment Trust Global Growth Index +11.9%
In the following section, we describe in some detail the main
contributors and detractors to performance over the period. A
number of important observations emerge from that review. Firstly,
we have started to see some significant moves in discounts. After a
number of years in which discounts to NAV remained stubbornly wide,
there has been a marked narrowing in several holdings. The weighted
average portfolio discount at the year end in September 2016 was
32%. As at 31 March 2017, this figure stood at 26%. The narrowing
of the discount is an important driver of performance and,
encouragingly, the current level remains substantially wider than
the narrowest levels seen back in 2006 when they reached 11%. This
gives an indication of the potential for further discount
contraction.
The second important feature to note is the volume of corporate
activity that we are observing across the portfolio. Corporate
activity can take a number of different forms. Some companies are
selling off assets and realising some of the hidden value in their
portfolios; in certain cases our own shareholder activism and
engagement with boards have led to the creation of shareholder
value; in others, controlling shareholders have been active in the
management of portfolio holdings; and elsewhere we have seen the
ultimate liquidation event that sees capital returned to
shareholders at a zero discount following the full disposal of a
company's assets.
This high level of corporate activity is an attractive feature
of the current market environment. Broadly speaking, our portfolio
is invested in a variety of different companies that we believe own
high quality assets whose value is not fully reflected in their
share prices - they trade at discounts to our estimate of their
realisable value. An environment in which assets are being sold, or
where value is being squeezed from a business via active ownership,
is one in which discounts can continue to narrow. Over the past 12
months, we have sold out of, or reduced our ownership in, a number
of investments that benefited enormously from corporate events.
These include Aker, AP Alternative Assets and Vietnam Phoenix Fund
(formerly known as DWS Vietnam). Each of these companies
experienced substantial discount contraction, as well as NAV
growth, on the back of a variety of corporate events. The capital
coming back to us from these investments has enabled us to make a
number of new investments that have attractive prospective return
profiles.
Contributors and Detractors
% of total assets
less current liabilities
as at 31 March
Contribution 2017
Contributors
AP Alternative Assets 3.5% 3.5%
JPEL Private Equity 1.4% 5.3%
Jardine Strategic 1.2% 5.9%
NB Private Equity Partners 1.2% 5.3%
Investor AB 'A' 1.1% 5.1%
Detractors
Adler Real Estate -0.2% 4.0%
Empiric Student Property -0.2% -*
Swire Pacific 'B' -0.2% 2.4%
LMS Capital -0.2% 0.5%
Hudson's Bay -1.6% 3.0%
* Sold prior to 31 March 2017. Source Asset Value Investors.
In the full year report, we described how currencies played a
part in the 31% return generated over the 2016 financial year.
Sterling devaluation following the Brexit vote in June 2016
contributed approximately one-half of those returns. Whilst we are
happy to benefit from such moves in currencies, in reality our
strategy is to focus on specific company fundamentals - valuations,
discount and events to unlock those discounts. It is therefore
interesting to note that the returns over this period saw minimal
benefit from the effects of currency moves and were almost entirely
driven by stock selection and discount contraction.
As discounts remain relatively wide, portfolio companies are
well placed to monetise the high-quality businesses which they own
and realise value from their portfolios. We are therefore confident
that this portfolio will continue to deliver returns for our
shareholders.
AP Alternative Assets
AP Alternative Assets was by some distance our largest
contributor over the period, adding 353bps to the Company's NAV as
our position increased in value by 48% in USD terms (after
accounting for sales) or 55% in GBP. The long-awaited IPO of Athene
Insurance (the sole asset owned by AP Alternative) came at a
premium to its carrying value and Athene Insurance's shares
subsequently traded materially higher.
We first invested in AP Alternative in mid-2012, attracted by
the 40% discount and management's unambiguous message that they saw
no better investment than buying back their own shares at such a
cheap rating. Launched in 2006 at a time when US private equity and
hedge fund managers were coming to Europe in search of permanent
capital, AP Alternative was established to co-invest alongside
Apollo's private equity funds and in its credit and hedge funds,
and had just under a third of its NAV invested in a privately-held
life insurance company called Athene. The financial crisis saw
sharp mark-downs in its heavily-leveraged private equity
investments exacerbated by further leverage at the AP Alternative
level. Apollo's response was aggressively pro-active, buying up
debt issued by their portfolio companies at deep discounts to par,
and the portfolio had been much stabilised by the time we
invested.
Late-2012 saw a restructuring under which AP Alternative
injected its Apollo-managed investments into Athene in exchange for
additional Athene shares to become a single-asset holding company.
We viewed Athene, a provider of fixed (mainly equity-indexed)
annuities, as an attractive high-growth business with clear and
embedded cost of capital and competitive advantages over peers. We
added materially to our position in AP Alternative thereafter
despite its shares trading at premiums approaching 30% at times to
reported NAVs, as our analysis suggested the value of Athene was
appreciably understated by the official valuation at which it was
held. We have reduced our position in AP Alternative since Athene's
IPO but continue to see upside in Athene.
Over the life of our investment to the period end, AP
Alternative has recorded a return on investment of 117% and an
annualised IRR of 46% (145% and 55% respectively in GBP).
JPEL Private Equity
JPEL Private Equity was our next most important contributor,
adding 136bps to NAV. Continued strong NAV growth, two exits from
its secondary direct portfolio and the first return of capital (4%
of NAV) under the new realisation policy saw the market reappraise
the company's prospects and the discount narrowed from 26% to 16%.
December saw the sale of Innovia, the company responsible for the
new UK plastic five pound notes, to Canadian strategic buyer CCL
Industries. Innovia was a co-investment made in 2014 by JPEL
alongside lead sponsor Arle, and the impressive returns (3.2x
invested capital/IRR of 50%) help validate the renewed investment
programme begun by JPEL at the beginning of 2014. The sale of
Innovia came at a 100% uplift to carrying value, boosting JPEL's
NAV by 3.6%. This was followed in March with the sale of Datamars,
the animal tagging business, for a return on invested capital of
3.5x and an IRR of 51%. These realisations helped fund a subsequent
return of capital of 19% of NAV. We continue to see upside and
further liquidity in JPEL's attractively valued and fast-growing
direct portfolio.
Jardine Strategic
We added substantially to Jardine Strategic ('JS') in recent
months and at times it has been the Company's largest position. We
believed that JS's underlying holdings were good value and would
benefit from an improving business environment. Jardine Cycle &
Carriage ('JCNC') (28% of JS's NAV) has been trading at a discount
much wider than average, currently at 21% versus a 13% long-term
average, despite improving performance from Astra International
(83% of JCNC's NAV) which had strong results from its core
automotive and heavy equipment businesses. In addition, Dairy
Farm's share price (28% of JS's NAV) rose 28% over the six months
as efforts to improve margins gained traction and a better
operating environment began to emerge in some markets as they saw
some price inflation. JS's third major holding, Hongkong Land (27%
of JS's NAV), also performed well over the period as its discount
narrowed to 27%. At one point during the six months it was trading
at a particularly wide discount of 43% versus its long-term average
of 33%, which we thought priced in far too aggressive a yield
expansion given both the capitalisation rates we used to value the
portfolio and the potential for rental increases in Central, Hong
Kong, where supply over the coming years is limited. Improving
performance of their underlying holdings, as outlined above, led to
an increase in JS's NAV of 12%.
While not central to our investment case, we were also cognisant
of the potential for JS to be included in the MSCI indices. We
analysed the actual and required liquidity requirements closely and
believed index inclusion was probable, and that we would see
discount narrowing as investors positioned themselves ahead of, and
after, the announcement in the first week of February 2017. Our
thesis played out as JS was included in the MSCI indices and we saw
the discount narrow from 37% at the end of September 2016 to 28% at
the half year. Benefiting from both discount contraction and NAV
growth, JS was our third largest contributor, adding 120bps to
NAV.
NB Private Equity Partners
Our position in NB Private Equity Partners ('NBPE') added
120bps, benefiting from solid NAV growth and discount narrowing (in
from 23% to 15%). A sector wide re-rating in the wake of
Harbourvest's contested bid for SVG Capital in the second half of
2016, and the announcement in late-March by NBPE of the
long-awaited enfranchisement of its shareholders, helped drive the
discount tighter. Having engaged constructively with the board and
management of NBPE on the issue over a sustained period of time, we
are pleased with the proposed introduction of full voting rights
for ordinary shareholders. The move will be accompanied by an
upgrade of the company's listing to the Premium segment of the
London Stock Exchange which, in tandem with a switch of trading
currency from USD to GBP, will result in index-tracker buying.
Further additional demand is likely to arise from non-passive
buyers previously unwilling or unable to own shares with limited
voting rights, and we expect the result to be a structurally
narrower discount than would otherwise have been the case. We
continue to view NBPE shares as undervalued given the historical
track record and attractive portfolio composition.
Investor AB
Investor, a long-term constituent of your portfolio, contributed
112bps with positive returns from both NAV growth (12%) and
discount contraction (24% to 18%). We have long held the view that
Investor, with its superior long-term NAV growth and quality
portfolio, should trade at a narrower, or similar, discount to its
Scandinavian peers. This has not been the case in recent years and
we attribute this in part to a lack of transparency on Investor's
unlisted portfolio. Management have taken steps to combat this,
such as holding a Capital Markets Day for the first time in seven
years and providing estimated market values for unlisted assets
(beginning in late-April). The latter is particularly important
given the disparity between accounting values used in its publicly
stated NAV and fair values. While this will have no effect on our
estimated NAV which already reflects our assessment of the fair
value of the unlisted assets, it should support continued discount
narrowing as the market also begins to recognise their true value.
We are supporters of the active ownership role Investor has with
its portfolio companies and, provided that the discount remains
compelling, we will continue to align our capital with the
Wallenberg family for many years to come.
Aker ASA
Aker's strong performance continued from last year, with its NAV
growing by 10% over the period and the discount narrowing from 31%
to 24%. This added 112bps to the Company's NAV. We took advantage
of the improved rating to sell almost half our position at
discounts as low as 22%, a level which compares favourably to our
average purchase discount of 44% and its previous all-time low
discount of 12%. Over the past 18 months, Aker's management has
undertaken a series of value enhancing corporate actions including
the disposal of highly-valued assets, the acquisition of distressed
assets, and the transformative merger of Det Norske with BP Norway
to form Aker BP. These are tremendous examples of how the long-term
perspective of active family ownership can create enormous value
for both the family and outside shareholders.
Swire Pacific
Swire Pacific, the Asian holding company with operations in
property, aviation, beverage manufacturing and marine services, was
our third largest detractor over the period, reducing NAV by 21bps
as the share price fell 11%. During the period, the company
announced a 46% dividend cut (the first since its 2008 financial
year) on the back of poor operating numbers from some of the
underlying holdings. While Swire Properties (75% of Swire Pacific
NAV) performed in line with peers as profits were flat on a
year-on-year basis, the aviation division reported an 85% drop in
earnings, driven primarily by Cathay Pacific, which has been hit by
intensifying competition in Asia, a suspension of fuel surcharges,
and a stronger Hong Kong dollar which reduced Hong Kong's
attractiveness as a tourist destination and had a negative impact
on Cathay's foreign revenues. The group was also affected by
revenue declines and impairment charges at the marine division,
where the fall in oil prices has reduced demand from offshore
energy companies for the division's services.
Over the period, the discount to NAV on Swire's B share class
expanded from 23% to 36%. Additionally, the value of the 82% stake
in Swire Properties now covers 100% of Swire Pacific's market
value. Investors are therefore effectively getting the non-property
businesses for no cost. This is a situation that does not occur
frequently and is a reflection of how out-of-favour the company is
with investors. Given the stable nature of Swire Properties, we
think a narrower discount is justifiable, although the timing of a
re-rating may be difficult to predict while some of the other
businesses continue to struggle.
LMS Capital
Although the impact of a NAV write-down and widening discount at
LMS Capital was mitigated by its relatively small weight in the
Company's portfolio, the position deducted 23bps from NAV over the
period. Write-downs at Medhost (increased uncertainty in the US
healthcare sector), ICU Eyewear (failed sale process and ongoing
capital requirements) and Nationwide Energy Partners (regulatory
upheaval) led to a sharp fall in NAV. The discount to NAV widened
as a change in policy about return of capital removed a key
support. There is, however, some solace to be had from the two
remaining tender offers that will be triggered upon certain levels
of further disposals being reached.
Hudson's Bay
Hudson's Bay was the largest detractor over the period, reducing
the Company's NAV by 157bps as the share price fell 36% in local
currency. As has been widely reported, the department store
industry has been facing a tough time as sales have begun to
deteriorate, especially in the US where the strong Dollar has
impacted tourist spending, a key demographic for Hudson's Bay's
high end department stores. Due to a poor operating environment,
the stated strategy of unlocking the value of the substantial
property portfolio has been met with scepticism by analysts and
investors. However, Hudson's Bay has already set up two joint
ventures in which they have sold stakes to third party investors
and which are operating as separate property owning entities. The
flow of rent from the operating company and the return of dividends
from these joint ventures gives us comfort on valuations, and a
listing of the largest of these vehicles, HBS Global, is expected
in the next 12 months. This should underscore the huge value in the
property assets that far exceeds the current share price of
Hudson's Bay.
Over time, we expect further monetisation of the company's real
estate to occur. Hudson's Bay equity stakes in the two property
joint ventures, which have attracted third party investors, are
valued at approximately CAD16.4 per Hudson's Bay share, on top of
which they own the Saks Fifth Avenue store and the Lord &
Taylor Fifth Avenue store. This compares to a share price of
CAD10.8 as at the end of the reporting period. We have added on
weakness.
Outlook
Our concentrated portfolio provides look-through exposure to a
diversified group of high-quality companies around the world. Our
strategy of investing in these companies via holding company
structures means that we are investing in them at valuations that
are well below those of broad equity markets. Corporate events,
such as trade sales, IPOs and restructurings of underlying
portfolio companies, or restructurings at the holding company level
itself, allow for the true value of these businesses to become more
fully reflected in the market's valuation of the holding company.
Corporate events therefore are a means by which discounts narrow
and NAVs increase.
In the current environment we are experiencing elevated levels
of corporate activity and this, together with relatively wide
discounts, is a sound combination for driving the future
performance of your Company. We continue to be excited by the
opportunities which we are finding. There is still plenty of value
in our universe and we are confident of delivering further returns
for our shareholders.
Thank you for your continued support.
Joe Bauernfreund
Asset Value Investors Limited
25 May 2017
INVESTMENT PORTFOLIO
INVESTMENTS AT 31 MARCH 2017
% of
total
% of assets
investee Cost Valuation less current
Company Nature of business company GBP'000 GBP'000 liabilities
------------------------------ ------------------------ ---------- --------- ---------- --------------
Investment Holding
Wendel Company 1.28 46,237 61,027 6.25
Investment Holding
Jardine Strategic Company 0.16 48,314 57,982 5.94
NB Private Equity
Partners Investment Company 9.99 29,524 51,442 5.27
Investment Holding
JPEL Private Equity Company 15.58 28,127 51,410 5.28
Investment Holding
Investor AB 'A' Company 0.47 17,330 49,449 5.07
Riverstone Energy Investment Company 4.57 36,089 47,852 4.90
Investment Holding
Pargesa Company 1.10 37,981 47,850 4.90
Symphony International
Holdings Investment Company 12.91 28,075 45,624 4.68
Tetragon Financial Investment Company 4.23(1) 36,830 39,886 4.09
Adler Real Estate Real Estate Company 6.88 39,226 38,950 3.99
Top ten investments 347,733 491,472 50.37
-------------------------------------------------------- ---------- --------- ---------- --------------
Investment Holding
Aker ASA Company 1.69 19,674 38,613 3.96
Better Capital (2009) Investment Company 17.44 26,659 37,139 3.81
Investment Holding
Toyota Industries Company 0.28 31,886 35,527 3.64
Investment Holding
Kinnevik AB Company 0.69 29,706 34,722 3.56
AP Alternative Assets Investment Company 1.55 12,643 33,863 3.47
Investment Holding
Exor Company 0.31 26,194 30,805 3.16
Hudson's Bay Retail Holding Company 2.53 37,907 29,534 3.03
Investment Holding
Digital Garage Company 3.67 24,766 28,631 2.93
DIC Asset Real Estate Company 4.85 20,924 26,385 2.70
Investment Holding
Tokyo Broadcasting Company 0.93 25,363 25,245 2.60
------------------------------ ------------------------ ---------- --------- ---------- --------------
Top twenty investments 603,455 811,936 83.23
-------------------------------------------------------- ---------- --------- ---------- --------------
SC Fondul Proprietatea
- GDR Investment Company 0.46 20,387 24,646 2.53
Investment Holding
Swire Pacific 'B' Company 0.56 22,618 23,161 2.37
Vietnam Phoenix Fund
'C' Investment Company 22.30(2) 11,223 18,874 1.93
GP Investments Investment Company 14.62 14,739 17,023 1.74
Athene Holding Investment Company 0.25 2,923 7,702 0.79
SC Fondul Proprietatea Investment Company 0.03 7,125 7,641 0.78
Dragon Capital Vietnam
Property Real Estate Company 15.40 3,526 6,278 0.64
LMS Capital Investment Company 12.05 8,225 4,881 0.50
Ashmore Global Opportunities
- GBP Investment Company 12.57(2) 2,455 2,928 0.30
Dolphin Capital Investors Real Estate Company 2.52 7,480 1,709 0.18
------------------------------ ------------------------ ---------- --------- ---------- --------------
Top thirty investments 704,156 926,779 94.99
EF Realisation Company Investment Company 8.44 1,698 1,595 0.16
Vietnam Phoenix Fund
'B'(3) Open-Ended Fund - 334 1,045 0.11
Total equity investments 706,188 929,419 95.26
-------------------------------------------------------- ---------- --------- ---------- --------------
UK Government Treasury
Bill - 11/09/2017 UK Government Security - 22,998 22,967 2.35
------------------------------ ------------------------ ---------- --------- ---------- --------------
Fixed income investments 22,998 22,967 2.35
-------------------------------------------------------- ---------- --------- ---------- --------------
Total investments 729,186 952,386 97.61
-------------------------------------------------------- ---------- --------- ---------- --------------
Net current assets 23,363 2.39
-------------------------------------------------------- ---------- --------- ---------- --------------
Total assets less
current liabilities 975,749 100.00
-------------------------------------------------------- ---------- --------- ---------- --------------
(1) Represents % of non-voting shares.
(2) Represents % of the total voting rights of the company.
(3) Open-ended fund with non-voting unlisted securities.
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 March 2017 (unaudited)
For the six months For the six months For the year
to 31 March 2017 to 31 March 2016 to 30 September 2016
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ----- -------- -------- ------- -------- -------- ------- -------- -------- --------
Income
Investment income 2 3,461 - 3,461 7,071 - 7,071 20,689 - 20,689
Gains on investments
held at fair value - 116,397 116,397 - 42,507 42,507 - 196,289 196,289
Foreign exchange
forward
contract loss - - - - (3,558) (3,558) - (3,557) (3,557)
Exchange losses on
currency
balances - (780) (780) - (16) (16) - (371) (371)
3,461 115,617 119,078 7,071 38,933 46,004 20,689 192,361 213,050
Expenses
Investment management
fee (906) (2,113) (3,019) (740) (1,727) (2,467) (1,511) (3,527) (5,038)
Other expenses
(including
irrecoverable VAT) (875) - (875) (738) - (738) (1,524) - (1,524)
----------------------- ----- -------- -------- ------- -------- -------- ------- -------- -------- --------
Profit before net
finance
costs and tax 1,680 113,504 115,184 5,593 37,206 42,799 17,654 188,834 206,488
Finance costs (496) (1,167) (1,663) (313) (748) (1,061) (815) (1,930) (2,745)
Exchange gains on loan
notes - 293 293 - (824) (824) - (2,992) (2,992)
----------------------- ----- -------- -------- ------- -------- -------- ------- -------- -------- --------
Profit before taxation 1,184 112,630 113,814 5,280 35,634 40,914 16,839 183,912 200,751
Taxation (91) - (91) (91) 1,580 1,489 1,908 1,579 3,487
----------------------- ----- -------- -------- ------- -------- -------- ------- -------- -------- --------
Profit for the period 1,093 112,630 113,723 5,189 37,214 42,403 18,747 185,491 204,238
----------------------- ----- -------- -------- ------- -------- -------- ------- -------- -------- --------
Earnings per Ordinary
Share (basic and
diluted) 3 0.89p 91.52p 92.41p 3.91p 28.04p 31.95p 14.32p 141.72p 156.04p
----------------------- ----- -------- -------- ------- -------- -------- ------- -------- -------- --------
The total column of this statement is the Income Statement of
the Company prepared in accordance with International Financial
Reporting Standards ('IFRS'), as adopted by the European Union. The
supplementary revenue and capital columns are presented in
accordance with the Statement of Recommended Practice issued by the
Association of Investment Companies ('AIC SORP').
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued
during the year.
There is no other comprehensive income, and therefore the profit
for the period is also the total comprehensive income.
The accompanying notes are an integral part of these financial
statements.
STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2017 (unaudited)
Ordinary Capital
share redemption Share Capital Merger Revenue
capital reserve premium reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------- --------- ----------- -------- --------- -------- --------- ---------
For the six months to 31 March 2016
Balance as at 30 September 2015 16,001 2,934 28,078 573,862 41,406 35,261 697,542
Ordinary Shares bought back and held in
treasury - - - (15,363) - - (15,363)
Total comprehensive income for the year - - - 37,214 - 5,189 42,403
Ordinary dividends paid (see note 6) - - - - - (12,914) (12,914)
Balance as at 31 March 2016 16,001 2,934 28,078 595,713 41,406 27,536 711,668
----------------------------------------- --------- ----------- -------- --------- -------- --------- ---------
For the year ended 30 September 2016
Balance as at 30 September 2015 16,001 2,934 28,078 573,862 41,406 35,261 697,542
Ordinary Shares bought back and held in treasury - - - (42,302) - - (42,302)
Total comprehensive income for the year - - - 185,491 - 18,747 204,238
Ordinary dividends paid (see note 6) - - - - - (15,505) (15,505)
Balance as at 30 September 2016 16,001 2,934 28,078 717,051 41,406 38,503 843,973
-------------------------------------------------- ------- ------ ------- --------- ------- --------- ---------
For the six months to 31 March 2017
Balance as at 30 September 2016 16,001 2,934 28,078 717,051 41,406 38,503 843,973
Ordinary Shares bought back and held in treasury - - - (36,869) - - (36,869)
Ordinary Shares held in treasury cancelled (3,048) 3,048 - - - - -
Total comprehensive income for the year - - - 112,630 - 1,093 113,723
Ordinary dividends paid (see note 6) - - - - - (15,471) (15,471)
Balance as at 31 March 2017 12,953 5,982 28,078 792,812 41,406 24,125 905,356
------------------------------------------------- -------- ------ ------- --------- ------- --------- ---------
The accompanying notes are an integral part of these financial
statements.
BALANCE SHEET
as at 31 March 2017 (unaudited)
At At At
31 March 2017 31 March 30 September
GBP'000 2016 2016
GBP'000 GBP'000
--------------------------------- -------------- ---------- --------------
Non-current assets
Investments held at fair
value through profit or loss 952,386 773,313 886,369
--------------------------------- -------------- ---------- --------------
952,386 773,313 886,369
Current assets
Sales for future settlement 6,128 1,407 18,422
Other receivables 3,683 6,529 4,032
Cash and cash equivalents 19,225 2,446 13,799
--------------------------------- -------------- ---------- --------------
29,036 10,382 36,253
Total assets 981,422 783,695 922,622
--------------------------------- -------------- ---------- --------------
Current liabilities
Purchases for future settlement (4,452) (1,123) (6,393)
Other payables (1,221) (2,404) (1,580)
(5,673) (3,527) (7,973)
--------------------------------- -------------- ---------- --------------
Total assets less current
liabilities 975,749 780,168 914,649
--------------------------------- -------------- ---------- --------------
Non-current liabilities
8(1) /(8) % Debenture Stock
2023 (14,954) (14,947) (14,950)
4.184% Series A Sterling
Unsecured Loan 2036 (29,874) (29,868) (29,871)
3.249% Series B Euro Unsecured
Loan 2036 (25,565) (23,685) (25,855)
--------------------------------- -------------- ---------- --------------
(70,393) (68,500) (70,676)
--------------------------------- -------------- ---------- --------------
Net assets 905,356 711,668 843,973
--------------------------------- -------------- ---------- --------------
Equity attributable to equity
shareholders
Ordinary share capital 12,953 16,001 16,001
Capital redemption reserve 5,982 2,934 2,934
Share premium 28,078 28,078 28,078
Capital reserve 792,812 595,713 717,051
Merger reserve 41,406 41,406 41,406
Revenue reserve 24,125 27,536 38,503
Total equity 905,356 711,668 843,973
-------------------------------- ------------ ------------ ------------
Net asset value per Ordinary
Share 753.39p 543.65p 670.52p
-------------------------------- ------------ ------------ ------------
Number of shares in issue
excluding
Treasury Shares 120,170,665 130,905,526 125,868,665
-------------------------------- ------------ ------------ ------------
The accompanying notes are an integral part of these financial
statements.
Registered in England & Wales No. 28203
STATEMENT OF CASH FLOWS
for the six months ended 31 March 2017 (unaudited)
Six months Six months Year to
to to 30 September
31 March 31 March 2016
2017 2016
GBP'000 GBP'000 GBP'000
------------------------------------------- ---------- ----------- ----------------
Reconciliation of profit before
taxation to net cash inflow/(outflow)
from operating activities
Profit before taxation 113,814 40,914 200,751
Unrealised exchange losses on currency
balances - (3,164) (3,180)
Gains on investments held at fair
value through profit or loss (116,397) (42,507) (196,289)
Purchases of investments (231,751) (309,677) (431,807)
Sales of investments 293,207 285,963 433,677
Decrease/(increase) in other receivables 31 (3,930) (513)
(Decrease)/increase in other payables (359) (56) 568
Taxation 228 3,010 4,089
Amortisation of debenture issue
expenses 10 6 16
Exchange rate (gain)/loss on Loan
Notes (293) 824 2,992
Net cash inflow from operating
activities 58,490 (28,617) 10,304
------------------------------------------- ---------- ----------- ----------------
Financing activities
Dividends paid (15,471) (12,914) (15,505)
Payments for Ordinary Shares bought
back and held in treasury (37,747) (15,382) (40,383)
Issue of loan net of costs - 52,726 52,726
Cash (outflow)/inflow from financing
activities (53,218) 24,430 (3,162)
------------------------------------------- ---------- ----------- ----------------
Increase/(decrease) in cash and
cash equivalents 5,272 (4,187) 7,142
------------------------------------------- ---------- ----------- ----------------
Reconciliation of net cash flow
movements in funds:
Cash and cash equivalents at beginning
of year 13,799 6,649 6,649
Exchange rate movements 154 (16) 8
Increase in cash and cash equivalents 5,272 (4,187) 7,142
------------------------------------------- ---------- ----------- ----------------
Increase/(decrease in net cash 5,426 (4,203) 7,150
------------------------------------------- ---------- ----------- ----------------
Cash and cash equivalents at end
of year 19,225 2,446 13,799
------------------------------------------- ---------- ----------- ----------------
Cash and cash equivalents received/(paid)
during the period includes:
- dividends received 3,565 6,969 18,998
- interest received - 26 30
- interest paid (1,641) (1,043) (2,717)
The accompanying notes are an integral part of these financial
statements.
NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 31 March 2017 (unaudited)
1. Significant accounting policies
The condensed financial statements of the Company have been
prepared in accordance with International Accounting Standards
(IAS) 34 - "Interim Financial Reporting" as adopted by the EU. The
accounting policies used by the Company followed in these half-year
financial statements are consistent with the most recent annual
report for the year ended 30 September 2016.
Going concern
The Directors have reviewed the Company's current financial
resources and the projected expenses of the Company for the next 12
months. On the basis of that review and as the majority of net
assets are securities which are traded on recognised stock
exchanges, the Directors are satisfied that the Company's resources
are adequate for continuing in business for the foreseeable future
(being a period of at least 12 months from the date this Half Year
Report is approved) and that it is appropriate to prepare the
Company's financial statements on a going concern basis.
Comparative information
The financial information contained in this Half Year Report
does not constitute statutory accounts as defined in the Companies
Act 2006. The financial information for the half-year periods ended
31 March 2016 and 31 March 2017 has not been audited but has been
reviewed by the Company's Auditor and its report can be found
below. The comparative figures for the financial year ended 30
September 2016 are not the Company's statutory accounts for that
financial year. Those accounts have been reported on by the
Company's Auditor and delivered to the registrar of companies. The
report of the Auditor was (i) unqualified, (ii) did not include a
reference to any matters to which the Auditor drew attention by way
of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
2. Income
At At At
31 March 31 March 30 September
2017 2016 2016
GBP'000 GBP'000 GBP'000
Income from investments
Listed investments 3,461 6,969 19,473
------------------------- ---------- ---------- --------------
Other income
Deposit interest - 25 30
Underwriting commission - - 77
Other income - 77 1,109
------------------------- ---------- ---------- --------------
- 102 1,216
Total income 3,461 7,071 20,689
------------------------- ---------- ---------- --------------
3. Earnings per Ordinary Share
At 31 March 2017
Revenue Capital Total
------------------------------------- -------- -------- --------
Net profit ('000) 1,093 112,630 113,723
Weighted average number of Ordinary
Shares 123,062,195
------------------------------------- ----------------------------
Earnings per Ordinary Share 0.89p 91.52p 92.41p
------------------------------------- -------- -------- --------
At 31 March 2016
Revenue Capital Total
------------------------------------- -------- -------- -------
Net profit ('000) 5,189 37,214 42,403
Weighted average number of Ordinary
Shares 132,729,324
------------------------------------- ---------------------------
Earnings per Ordinary Share 3.91p 28.04p 31.95p
------------------------------------- -------- -------- -------
At 30 September 2016
Revenue Capital Total
------------------------------------- -------- -------- --------
Net profit ('000) 18,747 185,491 204,238
Weighted average number of Ordinary
Shares 130,884,588
------------------------------------- ----------------------------
Earnings per Ordinary Share 14.32p 141.72p 156.04p
------------------------------------- -------- -------- --------
There are no dilutive instruments issued by the Company. Both
the basic and diluted earnings per share for the Company are
represented above.
4. Net asset value per Ordinary Share
The net asset value per Ordinary Share is based on net assets of
GBP905,356,000 (31 March 2016: GBP711,668,000; 30 September 2016:
GBP843,973,000) and on 120,170,665 (31 March 2016: 130,905,526; 30
September 2016: 125,868,665) Ordinary Shares, being the number of
Ordinary Shares in issue excluding shares held in treasury at the
period ends.
5. Share capital
During the period, 5,698,000 (six months to 31 March 2016:
3,357,685; year ended 30 September 2016: 8,394,546) Ordinary Shares
were bought back and placed in treasury for an aggregate
consideration of GBP36,869,000 (six months to 31 March 2016:
GBP15,363,000; year ended 30 September 2016: GBP42,301,575).
30,487,924 Ordinary Shares held in treasury were cancelled in
the period (six months to 31 March 2016: nil; year ended 30
September 2016: nil).
6. Dividends
During the period, the Company paid a final dividend of 9.7p per
Ordinary Share and a special dividend of 2.8p per Ordinary Share
for the year ended 30 September 2016 on 6 January 2017 to ordinary
shareholders on the register at 2 December 2016 (ex-dividend 1
December 2016).
An interim dividend of 2.0p per Ordinary Share for the period
ended 31 March 2017 has been declared and will be paid on 30 June
2017 to ordinary shareholders on the register at the close of
business on 9 June 2017 (ex-dividend 8 June 2017).
7. Values of financial assets and financial liabilities
Valuation of financial instruments
The Company measures fair values using the following hierarchy
that reflects the significance of the inputs used in making the
measurements.
The fair value is the amount at which the asset could be sold or
the liability transferred in an orderly transaction between market
participants, at the measurement date, other than a forced or
liquidation sale.
Categorisation within the hierarchy has been determined on the
basis of the lowest level input that is significant to the fair
value measurement of the relevant assets as follows:
-- Level 1 - valued using quoted prices, unadjusted in active
markets for identical assets or liabilities.
-- Level 2 - valued by reference to valuation techniques using
observable inputs for the asset or liability other than quoted
prices included in level 1.
-- Level 3 - valued by reference to valuation techniques using
inputs that are not based on observable market data for the asset
or liability.
Financial assets
The tables below set out fair value measurements of financial
instruments as at the period end, by the level in the fair value
hierarchy into which the fair value measurement is categorised.
Financial assets at fair value through Level Level Level 3 Total
profit or loss at 31 March 2017 1 2
----------------------------------------
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------- -------- -------- -------- --------
Equity investments 903,222 25,152 1,045 929,419
Fixed interest bearing securities 22,967 - - 22,967
---------------------------------------- -------- -------- -------- --------
926,189 25,152 1,045 952,386
---------------------------------------- -------- -------- -------- --------
There have been no transfers during the period between levels 1
and 2 fair value measurements. Transfers into or out of level 3
fair value measurements are disclosed below in the table of level 3
investment movements.
Level Level Level 3 Total
1 2
Financial assets at fair value through GBP'000 GBP'000 GBP'000 GBP'000
profit or loss at 31 March 2016
Equity investments 768,033 5,280 - 773,313
768,033 5,280 - 773,313
---------------------------------------- -------- -------- -------- --------
Level Level Level 3 Total
1 2
Financial assets at fair value through GBP'000 GBP'000 GBP'000 GBP'000
profit or loss at 30 September 2016
Equity investments 838,130 48,239 - 886,369
838,130 48,239 - 886,369
---------------------------------------- -------- -------- -------- --------
The following table summarises the Company's level 3 investments
that were accounted for at fair value in the six months to 31 March
2017.
At 31 March At 31 March At 30 September
2017 2016 2016
Level 3 Level 3 Level 3
GBP'000 GBP'000 GBP'000
Opening fair value of investments - - -
Transfer from level 2 to level 40,636 - -
3 investment
Total (losses)/gains recognised
in the Statement of Comprehensive
Income (6,884)
Sales proceeds (32,707) - -
Closing fair value of investments 1,045 - -
------------------------------------ ------------ ------------ ----------------
Fair value through profit or loss
The inputs used to measure fair value are categorised into
different levels of the hierarchy, the investment is categorised
entirely according to the lowest priority level that is significant
to the fair value measurement of the relevant asset or liability.
The Company's unquoted investments are categorised as level 3 and
their fair values are determined in accordance with the
International Private Equity and Venture Capital Valuation
guidelines and set out in the Annual Report 2016. These include
recent market transactions, discounted cash flow analysis and
anticipated returns. The transfers from level 2 to 3 is the result
of the restructuring of an investment becoming segmented between
realisable value (level 3) and the investment trading in an
inactive market (level 2).
Financial liabilities
The Company's 8(1) /(8) % Debenture Stock 2023 and unsecured
loan notes are measured at amortised cost, with the fair values set
out below. Creditors are carried in the Balance Sheet at amortised
cost.
At 30 September
At 31 March 2017 At 31 March 2016 2016
Book value Fair value Book value Fair value Book value Fair value
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- ----------- ----------- ----------- ----------- ----------- -------------
8(1) /(8) % Debenture
Stock 2023 (14,954) (19,463) (14,947) (19,238) (14,950) (19,470)
4.184% Series A Sterling
Unsecured Loan 2036 (29,874) (31,482) (29,868) (32,251) (29,871) (32,888)
3.249% Series B Euro
Unsecured Loan 2036 (25,565) (26,593) (23,685) (28,082) (25,855) (29,284)
-------------------------- ----------- ----------- ----------- ----------- ----------- -------------
(70,393) (77,538) (68,500) (79,571) (70,676) (81,642)
-------------------------- ----------- ----------- ----------- ----------- ----------- -------------
Quoted market prices have been used to determine the fair value
of the Company's Debenture Stock. As there is no publicly available
price for the Company's Loan Notes, their fair market value has
been derived by calculating the relative premium (or discount) of
the loan notes versus the publicly available market price of the
reference market instrument, discounted cash flows and exchange
rates.
8. Related parties and transactions with the Investment Manager
The Company paid management fees to Asset Value Investors
Limited during the period amounting to GBP3,460,000 (six months to
31 March 2016: GBP2,467,000; year ended 30 September 2016:
GBP5,038,000). At the half-year end, the following amounts were
outstanding in respect of management fees: GBPnil (31 March 2016:
GBPnil; 30 September 2016: GBPnil).
Fees paid to Directors for the six months ended 31 March 2017
amounted to GBP67,000 (six months to 31 March 2016: GBP67,000; year
ended 30 September 2016: GBP133,000).
Strone Macpherson was Chairman of Close Brothers Group plc
during the period, the ultimate parent of Winterflood Securities
Limited. Winterflood was the Company's Corporate Broker until 29
March 2017 and was paid a retainer of GBP25,000 per annum by the
Company. GBPnil was outstanding at the period end. Commissions
earned by Winterflood Securities Limited in managing the Company's
buy-back programme are offsettable against this retainer.
Commissions of GBP73,000 were earned in the period, fully
offsetting the retainer.
Mr Macpherson is a trustee of The King's Fund which will be
providing a venue and facilities for the purposes of holding the
Company's Annual General Meeting. The Company has paid The King's
Fund GBP4,000 during the period and a further GBP1,000 is
committed.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the Company are substantially
unchanged since the date of the Annual Report 2016 and continue to
be as set out on pages 9 to 11 of that report.
Risks faced by the Company include, but are not limited to,
investment risk, portfolio diversification, gearing, discount,
market risk, market price volatility, currency, liquidity risk,
interest rate and credit and counterparty risk. Details of the
Company's management of these risks and exposure to them are set
out in the Annual Report 2016.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
-- the condensed set of financial statements has been prepared
in accordance with International Accounting Standard 34, Interim
Financial Reporting as adopted by the EU; and
-- this Half Year Report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related party transactions that have taken place in the first
six months of the current financial year and that have materially
affected the financial position or performance of the Company
during that period; and any changes in the related party
transactions described in the last Annual Report that could do
so.
This Half Year Report was approved by the Board of Directors on
25 May 2017 and the above responsibility statement was signed on
its behalf by Strone Macpherson, Chairman.
Strone Macpherson
Chairman
25 May 2017
INDEPENT REVIEW REPORT TO BRITISH EMPIRE TRUST PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 31 March 2017 which comprises the Statement of
Comprehensive Income, Statement of Changes in Equity, Balance
Sheet, Statement of Cash Flows and the related explanatory notes.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with the
terms of our engagement to assist the Company in meeting the
requirements of the Disclosure Guidance and Transparency Rules (the
'DTR') of the UK's Financial Conduct Authority (the 'UK FCA'). Our
review has been undertaken so that we might state to the Company
those matters we are required to state to it in this report and for
no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company
for our review work, for this report, or for the conclusions we
have reached.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
The annual financial statements of the Company are prepared in
accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with IAS 34 "Interim Financial
Reporting" as adopted by the EU.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the UK. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 31
March 2017 is not prepared, in all material respects, in accordance
with IAS 34 as adopted by the EU and the DTR of the UK FCA.
Philip Merchant
for and on behalf of KPMG LLP
Chartered Accountants
319 St Vincent Street
Glasgow
G2 5AS
25 May 2017
SHAREHOLDER INFORMATION
Dividends
Shareholders who wish to have dividends paid directly into a
bank account rather than by cheque to their registered address can
complete a mandate form for the purpose. Mandate forms may be
obtained from Equiniti Limited, Aspect House, Spencer Road,
Lancing, West Sussex BN99 6DA on request or downloaded from
Equiniti's website www.shareview.com. The Company operates the BACS
system for the payment of dividends. Where dividends are paid
directly into shareholders' bank accounts, dividend tax vouchers
are sent to shareholders' registered addresses.
Share Prices
The Company's Ordinary Shares are listed on the London Stock
Exchange under 'Investment Trusts'. Prices are given daily in The
Financial Times, The Times, The Daily Telegraph, The Scotsman and
The Evening Standard.
Change of Address
Communications with shareholders are mailed to the last address
held on the share register. Any change or amendment should be
notified to Equiniti Limited at the address given above, under the
signature of the registered holder.
Daily Net Asset Value
The net asset value of the Company's shares can be obtained by
contacting Customer Services on 0845 850 0181 or via the website:
www.british-empire.co.uk.
AVI ISA
The AVI Stocks and Shares Individual Savings Account ('ISA') is
a savings account that allows you to invest in stocks and shares in
line with HM Revenue & Customs limitations.
AVI Share Plan
The AVI Share Plan is a savings plan which aims to provide a
simple and low cost way for private investors to purchase shares in
British Empire Trust plc. Lump sum payments or regular monthly
deposits can be made to the Share Plan.
For further information contact Customer Services on 0845 850
0181
Call charges may apply
COMPANY INFORMATION
Directors
Strone Macpherson (Chairman)
Steven Bates
Susan Noble
Nigel Rich
Andrew Robson
Calum Thomson
Secretary
Capita Company Secretarial Services Limited
Beaufort House
51 New North Road
Exeter
Devon EX4 4EP
Registered Office
Beaufort House
51 New North Road
Exeter
Devon EX4 4EP
Registered in England & Wales
No. 28203
Investment Manager and AIFM
Asset Value Investors Limited
25 Bury Street
London SW1Y 6AL
Registrar and Transfer Office
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Registrar's Shareholder Helpline
Tel. 0371 384 2490
Lines are open 8.30am to 5.30pm, Monday to Friday.
Registrar's Broker Helpline
Tel. 0906 559 6025
Calls to this number cost GBP1 per minute from a BT Landline,
other providers' costs may vary.
Lines are open 8.30am to 5.30pm, Monday to Friday.
Corporate Broker
Jefferies Hoare Govett
68 Upper Thames Street
London EC4V 3BJ
Auditor
KPMG LLP
319 St Vincent Street
Glasgow G2 5AS
Depositary
J.P. Morgan Europe Limited
25 Bank Street
London E14 5JP
Banker and Custodian
JPMorgan Chase Bank NA
125 London Wall
London EC2Y 5AJ
Solicitors
Herbert Smith Freehills LLP
Exchange Square
Primrose Street
London EC2A 2HS
A copy of the Half Year Report can be viewed and downloaded from
the Company's website:
www.british-empire.co.uk.
The content of the Company's web-pages and the content of any
website or pages which may be accessed through hyperlinks on the
Company's web-pages or this announcement is neither incorporated
into nor forms part of the above announcement.
National Storage Mechanism
A copy of the Half Year Report will be submitted shortly to the
National Storage Mechanism ('NSM') and will be available for
inspection at the NSM, which is situated at
www.morningstar.co.uk/uk/NSM.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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