Acorn Income Fund Limited
LEI 213800UAZN7G46AHQM67
Half-yearly Condensed Report
(unaudited)
For the Six Months Ended 30 June
2021
(Classified Regulated Information, under DTR 6 Annex 1 section
1.2)
The Company has today, in accordance with DTR 6.3.5, released
its Half-yearly Condensed Report (unaudited) for the six months
ended 30 June 2021.The Report will shortly be available via the
Investment Manager’s website
https://www.premierfunds.co.uk/investors/investments/investment-trusts/acorn-income-fund
and will also be available for inspection online at
www.morningstar.co.uk/uk/NSM website.
Investment Objectives and Policy
Investment Objectives
The investment objective and policy of Acorn Income Fund Limited
(the “Company” or “Acorn”) is to provide shareholders with high
income and the opportunity for capital growth.
The Company's assets predominantly comprise investments in
equities and fixed interest securities in order to achieve its
investment objective. The Company’s investments are held in two
portfolios. Approximately 70% to 80% of the Company’s assets are
invested in smaller capitalised United
Kingdom companies, admitted to the Official List of the
Financial Conduct Authority (the “FCA”) and traded on the main
market of the London Stock Exchange (the “LSE”) or traded on the
Alternative Investment Market (“AIM”) at the time of investment
(the “Smaller Companies Portfolio”). The Company also aims to
enhance income for Ordinary Shareholders by investing approximately
20% to 30% of the Company’s assets in high yielding instruments
which are predominantly fixed interest securities but may include
up to 15% of the Company’s overall portfolio (measured at the time
of acquisition) in high yielding investment company shares (the
“Income Portfolio”).
The proportion of the overall portfolio held in the Smaller
Companies Portfolio and the Income Portfolio varies from day to day
as the market prices of investments move. The Directors retain
discretion to transfer funds from one portfolio to the other and
generally expect between 70% to 80% of the investments to be held
in the Smaller Companies Portfolio.
While the Company’s investment policy is to spread risk by
maintaining diversified portfolios, there are no restrictions on
the proportions of either of the portfolios which may be invested
in any one geographical area, asset class or industry sector.
However, not more than 7.5% of the Company’s gross assets may be
invested in securities issued by any one company as at the time of
investment, save that (i) in respect of the Income Portfolio only,
investments may be made in other investment funds subject only to
the restriction set out in paragraph (c) of the section headed
“Investment Restrictions” below; and (ii) in respect of the Smaller
Companies Portfolio only, provided that not more than 10% of the
Company’s gross assets are invested in securities issued by any one
company at any time, with Board approval the 7.5% limit may be
exceeded on a short term basis where a company whose securities
form part of the Smaller Companies Portfolio issues new securities
(for example by way of a rights issue).
The Company’s capital structure is such that the underlying
value of assets attributable to the Ordinary Shares is geared
relative to the rising capital entitlements of the Preference
Shares (“ZDP Shares”). The Company’s gearing policy is not to
employ any further gearing through long-term bank borrowing. Save
with the prior sanction of ZDP Shareholders, the Company will incur
no indebtedness other than short term borrowings in the normal
course of business, such as to settle share trades or borrowings to
finance the redemption of the ZDP Shares.
Investment Restrictions
For so long as required by the LSE Listing Rules in relation to
closed-ended investment companies, the Company has adopted the
following investment and other restrictions:
a) the Company will at all times invest and
manage its assets in a way which is consistent with its objective
of spreading investment risk and in accordance with its published
investment policy;
b) the Company will not conduct any
significant trading activity; and
c) not more than 10% in aggregate of the value
of the total assets of the Company at the time the investment is
made will be invested in other listed closed-ended investment
funds. The Listing Rules provide an exception to this restriction
to the extent that those investment funds which have stated
investment policies to invest no more than 15% of their total
assets in other listed closed-ended investment companies.
Derivatives
The Company may invest in derivatives, money market instruments
and currency instruments including contracts for difference,
futures, forwards and options. These investments may be used for
hedging positions against movements in, for example, equity
markets, currencies and interest rates, for investment purposes and
for efficient portfolio management. The Company’s use of such
instruments for investment purposes is limited to 5 per cent of the
total assets of the Company. The Company will not use such
instruments to engage in any significant trading activity. The
Company will not maintain derivative positions should the total
underlying exposure of these positions (excluding any currency
hedges) exceed one times adjusted total capital and reserves.
Dividend Policy
The Company’s policy is to provide Ordinary Shareholders with a
high income relative to the average dividend yield of the UK
Smaller Companies comprised in the Numis Smaller Companies Index ex
Investment Companies. The Company aims to pay a regular quarterly
dividend in March, June, September and December. It is intended to
distribute substantially all of the Company’s net income after
expenses and taxation; however, the Company may retain a proportion
of the Company’s income in each year as a revenue reserve to assist
in providing long term stability in dividend distributions.
Dividends may be paid to holders of Ordinary Shares whenever the
financial position of the Company, in the opinion of the Directors,
justifies such payment, subject to the Company being able to
satisfy the solvency test, as defined under The Companies
(Guernsey) Law, 2008. The Board is alert to the potential for new
share issuance to dilute earnings and accordingly will have regard
to the size and timing of new share issues. The ZDP Shares do not
carry a right to a dividend.
Proposed Restructure
On 1 September 2021 the Board
announced a scheme of reconstruction offering a rollover into the
Unicorn UK Income Fund or a cash exit. These proposals, which will
involve putting the Company into voluntary liquidation and the
early redemption of the ZDP shares, will be put to shareholders at
General Meetings in or around October
2021.
Performance Summary
for the period ended 30 June
2021
|
30/06/2021 |
31/12/2020 |
% change/return |
| Total Return
Performance* |
|
|
|
| Total Return on Gross
Assets* |
|
|
14.45% |
| Numis Smaller
Companies (Ex Investment Companies) Index |
27,143.31 |
23,117.10 |
17.42% |
| FTSE All Share
Index |
7,852.35 |
7,068.59 |
11.09% |
| FTSE Small Cap (Ex
Investment Companies) Index |
10,424.11 |
8,108.86 |
28.55% |
| Share Price and NAV
Returns |
|
|
|
| Ordinary
Shares |
|
|
|
| Share Price |
352.00p |
322.50p |
9.15% |
| NAV** |
426.32p |
360.21p |
18.35% |
| IFRS
NAV# |
426.30p |
360.17p |
18.36% |
| Total Return on Net
Assets** |
|
|
22.04% |
| Ordinary Share Price
Total Return* |
|
|
12.82% |
| Discount (-) to NAV on
Ordinary Shares** |
-17.43% |
-10.47% |
|
| ZDP Shares |
|
|
|
| Share Price |
161.50p |
157.00p |
2.87% |
| NAV** |
163.05p |
160.02p |
1.89% |
| IFRS
NAV# |
163.06p |
160.05p |
1.88% |
| Discount (-) Premium
(+) to NAV on ZDP Shares** |
-0.96% |
-1.89% |
|
| Package Discount (-)
to |
|
|
|
| NAV Combined Ordinary
and ZDP Shares |
-11.84% |
-7.26% |
|
|
|
|
|
|
6 months
to 30/6/2021 |
6 months
to 30/6/2020 |
%
change |
|
|
|
|
| Dividends and
Earnings |
|
|
|
| Revenue Return per
Ordinary Share |
7.74p |
4.57p |
69.37% |
| Dividends Declared per
Ordinary Share |
11.50p |
11.50p |
0.00% |
* assumes dividends reinvested
** calculated in accordance with the Articles
# calculated in accordance with International Financial
Reporting Standards
Sources: Index data: Bloomberg, Total return on gross and net
assets, PFM, JP Morgan Cazenove
Company Summary
History
The Company was incorporated on 5 January
1999 and commenced its activities on 11 February 1999. The portfolio is divided into
two sub portfolios, a Smaller Companies Portfolio representing
approximately 70% to 80% of the total with the balance invested in
an Income Portfolio investing in fixed income securities,
investment company shares and structured investments. The Company
has always been leveraged, initially through bank debt and now
through Zero Dividend Preference (“ZDP”) Shares. In December 2016, shareholders approved the
extension of the ZDP Shares setting a new redemption date of
28 February 2022.
Capital Structure
Zero Dividend Preference Share (1p each)
21,230,989 (excluding treasury shares)
The ZDP Shares will have a final capital entitlement of
167.2 pence per ZDP Share on
28 February 2022 following the
extension of the life of the existing shares from 31 January 2017, subject to there being
sufficient capital in the Company. The ZDP Shares are not entitled
to any dividends. ZDP Shareholders rank ahead of the Ordinary
Shareholders in regards to rights as to capital. The ZDP
Shareholders have the right to receive notice of all General
Meetings of the Company, but do not have the right to attend or
vote unless the business of the meeting involves an alteration of
the rights attached to the ZDP Shares, in which case the holders of
ZDP Shares can attend and vote.
Ordinary Shares (1p each)
15,816,687 (excluding treasury shares)
The Ordinary Shares, excluding treasury shares, are entitled to
participate in all dividends and distributions of the Company. On a
winding-up, holders of Ordinary Shares are entitled to participate
in the distribution and the holders of Ordinary Shares are entitled
to receive notice of and attend and vote at all General Meetings of
the Company.
Treasury Shares
As at 30 June 2021, there were
1,325,972 Ordinary and 1,779,873 ZDP Shares held in treasury.
Shareholder Funds
£67.43 million as at 30 June 2021
(calculated in accordance with IFRS)
£67.43 million as at 30 June 2021
(calculated in accordance with the articles)
Market Capitalisation of the Ordinary
Shares
£56 million as at 30 June 2021
Company Details
The Board
The Board consists of three independent non-executive directors
(the “Directors”), Nigel Ward
(Chairman), David Warr and
Sharon Parr. Nigel Sidebottom is not considered independent
by virtue of his recent employment with the Premier Miton Group PLC
(the parent company of the Investment Manager).
Investment
Manager
Premier Asset Management (Guernsey) Limited (“PAMG”), is a
subsidiary of Premier Miton Group PLC (“PMG”). PMG had
approximately £13.6bn of funds under management as at 30 June 2021. PAMG is licensed under the
provisions of the Protection of Investors (Bailiwick of Guernsey)
Law, 1987, as amended, by the Guernsey Financial Services
Commission to carry on controlled investment business.
Investment
Advisers
Premier Fund Managers Limited (“PFM”) – the Company’s Income
Portfolio is managed by Chun Lee and
Robin Willis.
Unicorn Asset Management Limited (“Unicorn”) – the Company’s
Smaller Companies Portfolio is managed by Simon Moon and Fraser
Mackersie.
Secretary/Administrator
Northern Trust International Fund Administration Services
(Guernsey) Limited.
Corporate Broker
Singer Capital Markets.
Management
Fee
0.7% per annum (Total Assets) charged 75% to capital and 25% to
revenue. Minimum annual management fee £100,000.
In addition, a performance fee is payable at the year-end if the
target set out on Note 4 is achieved. This is charged 100% to
capital.
Registrar
JTC Registrars Limited
Financial Calendar
Company’s year
end
31 December
Annual results announced
April
Company’s half year
end
30 June
Annual General
Meeting
October 2021
Half-year results
announced September
Dividend
payments
At the end of March, June, September and December
Company website
www.acornincome.co.uk
Chairman’s Statement and Interim
Management Report
30 June 2021
Dear Shareholder
The Company’s Investment Advisers have reported at length
elsewhere in this Report and as I would like to spend some time
commenting on the Strategic Review I will restrict my comments
about performance simply to the headlines numbers, as follows:
Over the past six months, Acorn shareholders have seen a total
return on gross assets, which measures the return on the portfolio
including all income and costs, of 14.5%, and a total return on net
assets of 22.0%, the gearing effect of the Zero Dividend Preference
Shares having worked in favour of the ordinary shareholders during
the period. These moves compare to a total return from the Numis
Smaller Companies (ex-Investment Companies) Index, of 17.4% and
from the FTSE All Share Index, of 11.1%. I commend our Investment
Advisers for their contribution.
However, despite a robust performance from the underlying
portfolio, the ordinary share discount has not tightened as the
Board would have hoped, widening from 10.5% at 31st December 2020 to 17.6% as at 30th June 2021. Since the period-end the discount
has remained becalmed in the high teens. This highlights the
hurdles that the Company has faced over the past few years and it
is right that I should address the matter in detail.
Almost twelve months ago the challenges faced by the Company,
including sub-scale size, limited liquidity, split-cap and dual
portfolio structure, and likely future cut in dividends, led the
Board to conclude that the Company could not viably continue in its
present form. With a discontinuation vote scheduled for
August 2021, and no obvious prospect
of growing assets under management, there was a need to bring about
change. After an extensive process, and after consultation with
some shareholders, the Board ultimately concluded that the optimum
outcome was to recommend a scheme of reconstruction offering a
rollover into the Unicorn UK Income Fund or a cash exit. These
proposals, which will involve placing the Company into voluntary
liquidation, and early redemption of ZDP shares, were announced on
1 September and will likely be put to shareholders at General
Meetings during October.
Having served on the Acorn board since 2011, the last two years
as Chairman, I cannot help but feel a degree of sadness that a
Trust with over twenty years history is reaching the end of its
life. However, at the start of the strategic review the Board
recognised that allowing the Company to limp along for another five
years was unacceptable. We have constantly reminded ourselves that
every decision had to be in shareholders’ best interests and I
believe this outcome will achieve that aim.
Thank you for your support as an investor in our Company over
the years and I trust you will approve the measures proposed at the
forthcoming meetings.
Nigel
Ward
Chairman
Statement of Principal Risks and
Uncertainties
30 June 2021
The principal risks assessed by the Board relating to the
Company were disclosed in the Annual Report and Audited Financial
Statements for the year ended 31 December
2020. The principal risks disclosed include Coronavirus
risk, market price risk, credit risk, liquidity risk, foreign
currency risk and reinvestment risk. A detailed explanation can be
found in the annual report. The Board and Portfolio Manager do not
consider these risks to have changed and remain relevant for the
remaining six months of the financial year.
Coronavirus Risk
Coronavirus (“COVID-19”) continues to be considered as a
significant risk.
The Board has continued to monitor the development of the
COVID-19 outbreak and has considered the impact it has had to date
and will continue to have on the future of the Company and the
performance of the Smaller Companies Portfolio and Income Portfolio
(the “Portfolios”). Notwithstanding the impact the outbreak has
already had on the Company’s share price and NAV performance, there
remains continued uncertainty about the development and scale of
the COVID-19 outbreak particularly in relation to the length and
extent of the impact of social distancing restrictions and the
impact on the economy in general.
From an operational perspective, the Company uses a number of
service providers. These providers have established, documented and
regularly tested Business Resilience Policies in place, to cover
various scenarios whereby staff cannot turn up for work at the
designated office and conduct business as usual. Since the COVID-19
pandemic outbreak, service providers have deployed these
alternative working policies to good effect, thus ensuring
continued business service.
Market Price Risk
Since the Company invests in financial instruments, market price
risk is inherent in these investments. In order to minimise this
risk, a detailed analysis of the risk/reward relationship of each
investee company is undertaken by the Investment Advisers prior to
making investments.
Credit Risk
The investment portfolio is comprised of equities and bonds
which expose the Company to credit risk, being the risk that a
counterparty will default on its contractual obligations resulting
in financial loss to the Company.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter
difficulties in meeting its obligations associated with its
financial liabilities that are settled by delivery of cash or
another financial asset. Some of the Company’s investments in
smaller company equities and in certain bond issues may have
relatively low levels of daily turnover such that it might take
several days or even weeks to sell a holding into the market.
Foreign Currency Risk
Foreign currency risk is the risk that the value of a financial
instrument will fluctuate due to changes in foreign exchange rates.
The majority of the Company’s assets and liabilities are
denominated in sterling. However, some of the investments in the
Income Portfolio may be currencies. Generally, these exposures are
hedged denominated in foreign back to sterling and there is
unlikely to be any significant direct currency risk.
Interest Rate Risk
The Company's investment portfolios, particularly the Income
Portfolio, include investments bearing interest at fixed rates.
Generally when interest rates rise the market prices of fixed
interest securities fall and when interest rates fall the prices of
fixed interest securities rise. The Company will therefore be
exposed to movements in interest rates. The Company has fixed rate
leverage through its ZDP Shares. In January
2017, the redemption date of the Company’s ZDP Shares was
extended to 28 February 2022 at a
rate of 3.85% per annum. Replacing this leverage in 2022 might
involve the Company paying a higher accrual rate on an issue of new
ZDP Shares if interest rates have risen.
Discount Volatility
Being a closed-end fund, the Company’s shares may trade at a
discount or premium to their NAV. The magnitude of this discount or
premium fluctuates daily and can vary significantly. Thus, for a
given period of time, it is possible that the market price could
decrease despite an increase in the Company’s NAV.
The Directors review the discount levels regularly. The
Investment Advisers actively communicate with the Company’s major
shareholders and potential new investors, with the aim of managing
discount levels.
Related Parties
Related party balances and transactions are disclosed in note 14
of these Unaudited Condensed Interim Financial Statements.
Going concern
In accordance with Article 53.1 of the Articles of
Incorporation of the Company shareholders are to be given the
opportunity to vote in favour of, the discontinuation of the
Company. As this opportunity was last presented to shareholders on
26 September 2016, the next
discontinuation resolution was to be proposed at the Annual General
Meeting in 2021.
On 1 September 2021 the Board
announced that it was proposing a scheme of reconstruction which
would ultimately involve the roll over of all or part of the assets
into another vehicle or a cash distribution on liquidation of the
Company.
These proposals will be put to shareholders for voting in
General Meeting as soon as practicable.
As a result of these proposals, and the expectation that the
Company will be placed into voluntary liquidation in or around
October 2021, these Interim Financial
Statements for the period to 30 June
2021 have been prepared on a break-up basis reflecting this
intention. As a result, all assets are classified as current and
are stated at their estimated recoverable amounts and all creditors
are classified as falling due within one year. As the assets of the
Company are already stated at amounts which approximate their fair
value this has not resulted in any adjustment to the Net Asset
Value of the Company and the Directors believe that fair value
equates to recoverable amounts. A provision towards certain costs
associated with the scheme of reconstruction has been included
within these Interim Financial Statements.
For the avoidance of doubt this scheme of reconstruction and
ultimate liquidation is subject to shareholder vote. The Directors
have made the assumption that the scheme of reconstruction will be
approved and the Company will ultimately be placed into voluntary
liquidation.
Responsibility Statement
For the period from 1 January 2021
to 30 June 2021
The Directors are responsible for preparing the Unaudited
Half-yearly Financial Report (the “Unaudited Condensed Interim
Financial Statements”), which has not been audited or reviewed by
an independent auditor, and confirm that to the best of their
knowledge:
· the Unaudited Condensed Interim
Financial Statements have been prepared in accordance with
International Accounting Standard (IAS) 34, Interim Financial
Reporting;
· the interim management report
includes a fair review of the information required by:
a. DTR 4.2.7R of the Disclosure 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 Unaudited Condensed Interim 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 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 entity during that period; and any changes in
the related party transactions described in the last annual report
that could do so.
Signed on behalf of the Board by:
Nigel
Ward
Chairman
16 September 2021
Investment Advisers’ Report
The Smaller Companies Portfolio
Period to 30 June 2021
During the six month period to 30 June
2021 the Smaller Companies portfolio generated a total
return of +19.0%, before expenses, ahead of the +17.4% total return
of the Numis Smaller Companies Index (Ex Investment Companies).
Investing in UK smaller companies has required extreme patience
and fortitude over the last five years. Since the 2016 Brexit
referendum there has been significant uncertainty hanging over the
prospects of the country’s economic future. In the face of this,
asset allocation to the UK fell to exceptionally low levels, the
net effect of which was significant outflows from UK assets.
Sterling fell to and stayed at historically low levels against
other major currencies and smaller, more domestically focussed,
companies disproportionately bore the brunt of this headwind. Over
this period allocators have preferred relatively expensive growth
companies to value/yield stocks and the rest of the world to the
UK. Although this environment has been difficult to navigate, it
has offered opportunities to populate a portfolio of high quality
companies, sitting at attractive valuations, which now face a
brighter future than they have at any point in the last five
years.
As we commented in our annual review of 2020, the last minute
Brexit deal removed the significant risk that has been integral to
net fund flows out of the UK and we looked forward with clarity,
confidence, and optimism. Combined with recovering Sterling and the
successful vaccine role out we still feel a sustained economic and
equity recovery is in train. In such circumstances smaller
companies tend to capture more of the upside – a trend which has
been clearly evident in the first half of the year.
As expected, portfolio turnover during the period was very low
with just one disposal and no new additions. On a rolling twelve
month basis there have been three additions and two disposals,
ending the period with 43 holdings. As outlined in previous reports
a number of changes were made in the first half of 2020 to take
advantage of the attractive valuations created by the market
volatility, to ensure income generation remained robust, and to
position the portfolio to benefit from some of the likely improving
conditions outlined above. This activity successfully positioned
the portfolio for a prolonged period of economic recovery and the
need for changes since has been significantly lower. The only
holding exited during the period was Hill and Smith, an excellent
company which has performed very well in the portfolio for a number
of years but has ultimately suffered yield compression after a
number of years of strong share price appreciation.
The portfolio delivered both strong capital growth and excellent
recovery in dividend payments in the first half of the year.
Following an initial recovery in many of the more speculative areas
of the small cap market in the second half of 2020 – areas which
rarely meet our strict investment criteria – it is pleasing to
outperform the benchmark during the first half of the current year.
The strong performance was driven by the significant contributions
from a large number of our high quality, long standing
investments.
In keeping with our long term investment approach, Industrials
remained the largest sector in the portfolio with an average weight
of 33% during the period. A number of companies within this group
performed strongly in the first six months of the year, including
significant contributions from Somero (194bps), Alumasc (179bps),
Wincanton (160bps) and Braemar Shipping (152bps). Industrials
generated an average total return of 33%, adding 1045bps to
absolute portfolio performance and a meaningful relative
contribution. Despite this strong period of performance we believe
there remains significant recovery potential within our industrial
holdings.
Another notable sector contribution came from Financials, the
second largest sector with an average weight of 30%, which added
347bps to performance. Polar Capital and Liontrust were the best
performers in the group, adding 87bps and 64bps respectively.
The third largest sector contribution came from Consumer Staples
and was driven by just two companies, with both Warpaint (204bps)
and Devro (56bps) starting the year strongly. The largest negative
relative contribution to performance came from an underweight
position in Consumer Discretionary - despite our sector
constituents recording an average positive total return of 18%.
Whilst there has clearly been strong capital recovery in the sector
during the first half of the year opportunities which meet our
strict income driven criteria remain limited.
In the last full year report we spoke of the dividend resilience
of the Smaller Companies portfolio. It is pleasing to report that
the portfolio received dividend income for H1 that was up 93%
compared to H1 last year and down just 19% compared to the same
period in 2019, this a far more resilient picture than the broader
UK Market which has only recovered 16% from 2020 and is down 31% on
2019. Within the UK Market Small and Mid-Cap dividends were hit
particularly hard in 2020, making the outturn for 2020 and
subsequent recovery of the smaller companies’ portfolio income in
2021 even more satisfying.
Whilst it is pleasing to see the strong performance from the
Smaller Companies portfolio (and small companies in general) it is
important to emphasise that we feel this is the beginning of a
‘game of catch up’ and that the portfolio still has much further to
go following the now-lifted headwinds talked about in previous
reports and the opening paragraphs. The portfolio is populated by
well capitalised, well managed, market leading, high quality
companies which are in an enhanced position to take advantage of
opportunities over the recovery and benefit disproportionately on
the upside.
Fraser
Mackersie and Simon Moon
Unicorn Asset Management Limited
The Income Portfolio
For much of the first half of the year, the global economic
recovery has focussed market attention on inflation. Much of the
period has seen inflation data in developed markets such as the US
and UK show strong year-on-year gains as demand from the reopening
of economies, lingering supply chain bottlenecks and the moves in
commodities have exerted strong upward price pressures. This has
driven a debate over whether price pressures are transitory or part
of a longer term trend. Distortions generated in areas such as the
leap in used car sale values have to be taken alongside evidence of
the need to raise wages to attract workers back to certain
industries. For a more sustained inflationary outlook, we would
look for wage rises working their way into the wider economy and
for excess savings to find their way back into the real economy
however it might be some time until we can identify the true
persistence of the trend.
The potential for more sustained inflation saw a material rise
in yields over much of the period as investors sought compensation
for the risk of having future income eroded, especially as central
banks such as the U.S Federal Reserve (the “Fed”) appeared to
indicate that they were prepared to let the economy run “hot” in
order to achieve full employment. However the tone and direction
for yields have recently taken a turn as the Fed, pressured by
strong data and further fiscal stimulus, surprised markets by
turning more hawkish and implying it may raise rates sooner than
anticipated. The potential refocus on limiting inflationary
pressures was soon joined by rising fears about the strength of the
recovery as the COVID-19 delta variant threatens to postpone a full
reopening of the global economy, whilst also exacerbating the
supply side disruptions already being felt. Again, it appears too
early to tell which narrative will turn out to be true and so we
remain cautious to potential risks stemming from changes in the
growth outlook, the durability of inflation and changes to central
bank policies. We are running at a lower duration sensitivity than
a bond index whilst also diversifying into alternatives which look
to offer better risk-return characteristics. Within the Sterling
corporate bond market, we continue to participate in new issues
where we see attractive discounts compared with existing bonds for
favoured issuers. We are being selective in companies which we
either see as being able to continue improving their valuations or
have the resilience to withstand any shocks to the market which may
arise from a weaker or more prolonged recovery than expected or the
tapering of supportive central bank policies.
Easy monetary policy has kept government rates low in a
historical context and fiscal policy and the hunt for yield have
kept funding costs low for corporates. This means that while
fundamentals have been very supportive for credit, valuations feel
rich given the uncertainties and we endeavour to avoid
complacency.
Chun
Lee and Robin Willis
Premier Fund Managers Limited
Schedule of Principal Investments
as at 30 June 2021
Position |
Company |
Market Value £’000 |
Percentage of Portfolio |
Percentage of Total Assets 2021 |
| Smaller Companies Portfolio |
| 1 |
Polar Capital
Holdings plc |
3,735,000 |
4.51 |
3.65 |
| 2 |
Somero
Enterprises Inc |
3,600,000 |
4.35 |
3.51 |
| 3 |
Sabre Insurance
Group plc |
3,289,500 |
3.97 |
3.21 |
| 4 |
Telecom Plus
plc |
2,953,600 |
3.57 |
2.88 |
| 5 |
Chesnara
plc |
2,782,500 |
3.36 |
2.72 |
| 6 |
Ocean Wilsons
Holdings Limited |
2,675,000 |
3.23 |
2.61 |
| 7 |
Vesuvius
plc |
2,637,500 |
3.18 |
2.57 |
| 8 |
Warpaint
London plc |
2,625,000 |
3.17 |
2.56 |
| 9 |
Numis
Corporation plc |
2,586,459 |
3.12 |
2.52 |
| 10 |
Severfield
plc |
2,567,500 |
3.10 |
2.51 |
| 11 |
Primary Health
Properties plc |
2,537,700 |
3.06 |
2.48 |
| 12 |
Alumasc Group
plc |
2,210,000 |
2.67 |
2.16 |
| 13 |
Braemar Shipping
Services plc |
2,100,000 |
2.54 |
2.05 |
| 14 |
Wincanton
plc |
2,085,250 |
2.52 |
2.03 |
| 15 |
Goodwin plc |
2,080,500 |
2.51 |
2.03 |
| 16 |
Epwin Group
plc |
2,037,000 |
2.46 |
1.99 |
| 17 |
Brewin Dolphin
Holdings plc |
2,015,500 |
2.43 |
1.97 |
| 18 |
Regional REIT
Limited |
1,973,409 |
2.38 |
1.93 |
| 19 |
STV Group
plc |
1,968,943 |
2.38 |
1.92 |
| 20 |
XPS Pensions
Group plc |
1,904,000 |
2.30 |
1.86 |
| TOTAL |
|
50,364,361 |
60.81 |
49.16 |
|
|
|
|
|
| Income
Portfolio |
|
|
|
| 1 |
APQ Global
Limited 3.5% CULS 30/09/2024 |
696,870 |
4.01 |
0.68 |
| 2 |
AT&T 2.9%
04/12/2026 |
541,020 |
3.12 |
0.53 |
| 3 |
Citigroup 1.75%
23/10/2026 |
511,539 |
2.95 |
0.50 |
| 4 |
Verizon
Communications 1.875% 19/09/2030 |
504,560 |
2.91 |
0.49 |
| 5 |
Goldman Sachs
Group F2V 16/12/2025 |
452,721 |
2.61 |
0.44 |
| 6 |
GS Group 3.125%
25/07/2029 |
443,840 |
2.56 |
0.43 |
| 7 |
France Telecom
8.125% 2028 |
439,663 |
2.53 |
0.43 |
| 8 |
Wells Fargo 2.5%
02/05/2029 |
423,130 |
2.44 |
0.41 |
| 9 |
Barclays 3.125%
17/01/2024 |
421,684 |
2.43 |
0.41 |
| 10 |
HSBC Holdings
2.256% FRN 13/11/2026 |
415,230 |
2.39 |
0.41 |
| 11 |
SSE plc 3.75%
FRN PERP |
412,646 |
2.38 |
0.40 |
| 12 |
Lloyds Bank
1.75% 11/07/2024 |
410,490 |
2.36 |
0.40 |
| 13 |
Banco Santander
SA 1.50% 14/04/2026 |
401,504 |
2.31 |
0.39 |
| 14 |
Real Estate
Investors plc |
383,432 |
2.21 |
0.37 |
| 15 |
Burford Capital
6.5% 19/08/2022 |
376,853 |
2.17 |
0.37 |
| 16 |
Electricite De
Franc F2V 6.00% 31/12/2049 |
335,100 |
1.93 |
0.33 |
| 17 |
Just Group plc
9.00% 10/26/2026 |
330,894 |
1.91 |
0.33 |
| 18 |
JPMorgan Chase
F2F 1.00% 28/04/2026 |
330,127 |
1.90 |
0.32 |
| 19 |
Paragon Treasury
P 2.00% 07/05/2036 |
326,940 |
1.88 |
0.32 |
| 20 |
HSBC Holdings
F2F 3.00% 29/05/2030 |
323,700 |
1.86 |
0.32 |
| TOTAL |
|
8,481,943 |
48.86 |
8.28 |
As at 31 December 2020
Position |
Company |
Market Value £’000 |
Percentage of Portfolio |
Percentage of Total Assets 2020 |
Smaller Companies Portfolio
|
| 1 |
Polar Capital
Holdings plc |
3,252,400 |
4.69 |
3.57 |
| 2 |
Sabre Insurance
Group plc |
2,917,075 |
4.21 |
3.20 |
| 3 |
Telecom Plus
plc |
2,868,000 |
4.14 |
3.14 |
| 4 |
Chesnara
plc |
2,798,150 |
4.04 |
3.07 |
| 5 |
Primary Health
Properties plc |
2,667,000 |
3.85 |
2.92 |
| 6 |
Numis
Corporation plc |
2,493,750 |
3.60 |
2.73 |
| 7 |
Severfield
plc |
2,163,800 |
3.12 |
2.37 |
| 8 |
Goodwin plc |
2,107,000 |
3.04 |
2.31 |
| 9 |
Somero
Enterprises Inc |
2,039,713 |
2.94 |
2.24 |
| 10 |
Ocean Wilsons
Holdings Limited |
2,012,750 |
2.90 |
2.21 |
| 11 |
Clipper
Logistics plc |
1,820,800 |
2.63 |
2.00 |
| 12 |
Brewin Dolphin
Holdings plc |
1,769,000 |
2.55 |
1.94 |
| 13 |
Epwin Group
plc |
1,765,400 |
2.55 |
1.94 |
| 14 |
FDM Group
Holdings plc |
1,764,680 |
2.55 |
1.93 |
| 15 |
Regional Reit
Limited |
1,764,386 |
2.55 |
1.93 |
| 16 |
XPS Pensions
Group plc |
1,748,250 |
2.52 |
1.92 |
| 17 |
James Halstead
plc |
1,659,200 |
2.39 |
1.82 |
| 18 |
Wincanton
plc |
1,631,846 |
2.35 |
1.79 |
| 19 |
Boot (Henry)
plc |
1,606,500 |
2.32 |
1.76 |
| 20 |
STV Group
plc |
1,604,159 |
2.31 |
1.76 |
| TOTAL |
|
42,453,859 |
61.25 |
46.55 |
|
|
|
|
|
| Income
Portfolio |
|
|
|
| 1 |
Pershing Square
Holdings 5.50% 15/07/2022 |
772,559 |
3.73 |
0.85 |
| 2 |
Value &
Income Trust 11.00% 31/03/2021 |
733,575 |
3.54 |
0.80 |
| 3 |
APQ Global
Limited 3.5% CULS 30/09/2024 |
696,870 |
3.37 |
0.76 |
| 4 |
Credit Suisse
Group 2.75% 08/08/2025 |
654,577 |
3.16 |
0.72 |
| 5 |
AT&T 2.9%
04/12/2026 |
554,276 |
2.68 |
0.61 |
| 6 |
Verizon
Communications 1.875% 19/09/2030 |
535,380 |
2.59 |
0.59 |
| 7 |
Citigroup 1.75%
23/10/2026 |
526,522 |
2.54 |
0.58 |
| 8 |
UK Municipal
Bonds Agency 1.625% 26/08/2060 |
522,141 |
2.52 |
0.57 |
| 9 |
GS Group 3.125%
25/07/2029 |
467,796 |
2.26 |
0.51 |
| 10 |
RM plc ZDP |
465,400 |
2.25 |
0.51 |
| 11 |
France Telecom
8.125% 2028 |
463,188 |
2.24 |
0.51 |
| 12 |
British American
Tobacco plc 4% 04/09/2026 |
459,454 |
2.22 |
0.50 |
| 13 |
Wells Fargo 2.5%
02/05/2029 |
441,267 |
2.13 |
0.48 |
| 14 |
HSBC Holdings
2.256% FRN 13/11/2026 |
425,932 |
2.06 |
0.47 |
| 15 |
Barclays 3.125%
17/01/2024 |
425,386 |
2.06 |
0.47 |
| 16 |
US 0.875% IL
Treasury 2047 |
424,170 |
2.05 |
0.47 |
| 17 |
Karbon Homes Ltd
3.375% 15/11/2047 |
420,740 |
2.03 |
0.46 |
| 18 |
Lloyds Bank
1.75% 11/07/2024 |
413,215 |
2.00 |
0.45 |
| 19 |
SSE plc 3.75%
FRN PERP |
412,668 |
1.99 |
0.45 |
| 20 |
Morrison
Supermarket 4.75% 04/07/2029 |
383,097 |
1.85 |
0.42 |
| TOTAL |
|
10,198,213 |
49.27 |
11.18 |
Viability Statement
For the period ended 30 June
2021
In accordance with the UK Corporate Governance Code, published
by the Financial Reporting Council (the “Code”), the Directors have
assessed the viability of the Company over a three-year period,
taking into account the Company’s position at 30 June 2021.
As mentioned in the going concern section, the Directors have
the expectation that the Company will be placed into voluntary
liquidation in or around October 2021
and as a result, these Interim Financial Statements for the period
to 30 June 2021 have been prepared on
a break-up basis, reflecting this intention.
A period of three years has still been chosen for the purposes
of viability as the scheme of reconstruction and ultimate voluntary
liquidation of the Company remains subject to a shareholder
vote.
The Board has also considered the Company's other principal
risks and uncertainties in particular:
(i) the Company’s ability to repay the final capital entitlement
of the ZDP Shares on either the date of reconstruction or on
28 February 2022 whichever is the
later;
(ii) any potential falls in value of the Company’s investment
portfolio; and
(iii) the potential impact of COVID-19.
The Directors have also considered the Company’s income and
expenditure projections taking into account the fact that the
Company’s investments principally comprise liquid securities listed
on recognised stock exchanges and are satisfied that the Company
has sufficient cash and liquid assets to be able to meet its
liabilities as they fall due and to continue in operation on a
solvent basis to June 2024,
regardless of whether the scheme of reconstruction is approved and
the Company is placed into voluntary liquidation.
Condensed Statement of Comprehensive
Income (unaudited)
For the period ended 30 June
2021
|
|
|
|
Period ended 30 June 2021 |
Period ended 30 June 2020 |
|
|
|
|
Revenue |
Capital |
Total |
Total |
|
Notes |
GBP |
GBP |
GBP |
GBP |
| Net gains/(losses) on
financial assets designated as at fair value through profit or
loss |
8 |
- |
11,978,052 |
11,978,052 |
(23,379,166) |
| Gains/(losses) on
derivative financial instruments |
|
- |
27,486 |
27,486 |
(263,264) |
| Investment income |
3 |
1,663,614 |
- |
1,663,614 |
1,048,112 |
| Foreign exchange
gains/(losses) |
4 |
211 |
(13,076) |
(12,865) |
(37,443) |
| Total income and
gains/(losses) |
|
1,663,825 |
11,992,462 |
13,656,287 |
(22,631,761) |
| Expenses |
4 |
(440,099) |
(298,559) |
(738,658) |
(633,961) |
| Return/(loss) on
ordinary activities before finance costs and taxation |
|
1,223,726 |
11,693,903 |
12,917,629 |
(23,265,722) |
| Interest payable and
similar charges |
5 |
- |
(640,185) |
(640,185) |
(619,728) |
| Return/(loss) on
ordinary activities before taxation |
|
1,223,726 |
11,053,718 |
12,277,444 |
(23,885,450) |
| Taxation on ordinary
activities |
|
- |
- |
- |
- |
| Other comprehensive
income |
|
- |
- |
- |
- |
| Total comprehensive
income/(loss) for the period attributable to Ordinary
Shareholders |
|
1,223,726 |
11,053,718 |
12,277,444 |
(23,885,450) |
|
|
Pence |
Pence |
Pence |
Pence |
| Return/(loss) per
Ordinary Share |
7 |
7.74 |
69.89 |
77.63 |
(151.01) |
| Dividend per
Ordinary Share |
6 |
11.50 |
- |
11.50 |
11.50 |
| Return per ZDP
Share |
7 |
- |
3.02 |
3.02 |
2.92 |
The supplementary revenue return and capital return columns have
been prepared in accordance with the Statement of Recommended
Practice (“SORP”) issued by the AIC.
In arriving at the results for the financial period, all amounts
above related to continuing operations. No operations were acquired
or discontinued in the period.
The Notes to the Condensed Financial Statements form an integral
part of the Unaudited Condensed Interim Financial Statements.
Condensed Statement of Financial
Position (unaudited)
As at 30 June 2021
|
|
30
June 2021 |
31
December 2020 |
|
Notes |
GBP |
GBP |
| CURRENT
ASSETS |
|
|
|
| Financial assets
designated as at fair value through profit or loss |
8 |
100,185,567 |
90,003,736 |
| Receivables |
9 |
337,642 |
458,353 |
| Cash and cash
equivalents |
|
1,917,289 |
609,466 |
| Derivative financial
instruments |
|
- |
132,269 |
| TOTAL
ASSETS |
|
102,440,498 |
91,203,824 |
| CURRENT
LIABILITIES |
|
|
|
| Derivative financial
instruments |
|
7,734 |
- |
| Payables - due within
one year |
10 |
387,364 |
257,133 |
| ZDP Shares |
11 |
34,619,589 |
33,979,404 |
| TOTAL
LIABILITIES |
|
35,014,687 |
68,215,941 |
| NET ASSETS |
|
67,425,811 |
22,987,883 |
| EQUITY |
|
|
|
| Share capital and
premium |
12 |
27,420,824 |
27,420,824 |
| Revenue reserve |
|
1,359,254 |
1,954,448 |
| Capital reserve |
|
33,425,895 |
22,372,177 |
| Other reserves |
13 |
5,219,838 |
5,219,838 |
| TOTAL
EQUITY |
|
67,425,811 |
56,967,287 |
|
|
Pence |
Pence |
| Net asset value per
Ordinary Share (per Articles) |
|
426.32* |
360.21 |
| Net asset value per
Ordinary Share (per IFRS) |
|
426.30 |
360.17 |
| Net asset value per
ZDP Share (per Articles) |
|
163.05 |
160.02 |
| Net asset value per
ZDP Share (per IFRS) |
|
163.06 |
160.05 |
*The difference between the NAV shown above and the published
NAV is due to the accrual in these interim financial statements of
certain costs of restructuring.
The Unaudited Condensed Interim Financial Statements were
approved by the Board of Directors and authorised for issue on
16 September 2021 and signed on its
behalf by:
Nigel
Ward
Chairman
The Notes to the Condensed Financial Statements form an integral
part of the Unaudited Condensed Interim Financial Statements.
Condensed Statement of Cash Flows
(unaudited)
For the period ended 30 June
2021
|
|
Period ended 30 June 2021 |
Period ended 30 June 2020 |
|
|
|
Notes |
GBP |
GBP |
| Operating
activities |
|
|
|
| Return/(loss) on
ordinary activities before taxation |
|
12,277,444 |
(23,885,450) |
| Net (gains)/losses on
financial assets designated as at fair value through profit or
loss |
8 |
(11,978,052) |
23,379,166 |
| Dividend income |
3 |
(1,465,808) |
(821,184) |
| Interest income |
3 |
(197,806) |
(226,928) |
| Interest expense |
5 |
640,185 |
619,728 |
| Decrease in derivative
financial assets |
|
132,269 |
158,013 |
| Increase in derivative
financial liabilities |
|
7,734 |
19,584 |
| Increase/(decrease) in
payables and appropriations excluding amount due to brokers |
10 |
130,231 |
(45,296) |
| Increase in
receivables excluding accrued investment income and due from
brokers |
9 |
(6,433) |
(9,790) |
| Net cash flow used
in operating activities before investment income |
|
(460,236) |
(812,157) |
| Investment income
received |
|
1,792,614 |
1,183,957 |
| Net cash flow from
operating activities before taxation |
|
1,332,378 |
371,800 |
| Tax paid |
|
- |
- |
| Net cash flow from
operating activities |
|
1,332,378 |
371,800 |
|
|
|
|
| Investing
activities |
|
|
|
| Purchase of financial
assets designated at fair value through profit or loss |
|
(12,953,049) |
(15,233,430) |
| Sale of financial
assets designated at fair value through profit or loss |
|
14,747,414 |
15,803,301 |
| Net cash flow from
investing activities |
|
1,794,365 |
569,871 |
|
|
|
|
| Financing
activities |
|
|
|
| Equity dividends
paid |
6 |
(1,818,920) |
(1,818,920) |
| Net cash flow used
in financing activities |
|
(1,818,920) |
(1,818,920) |
| Increase/(decrease)
in cash and cash equivalents |
|
1,307,823 |
(877,249) |
| Cash and cash
equivalents at beginning of period |
|
609,466 |
2,324,683 |
| Cash and cash
equivalents at end of period |
|
1,917,289 |
1,447,434 |
The Notes to the Condensed Financial Statements form an integral
part of the Unaudited Condensed Interim Financial Statements.
Condensed Statement of Changes in
Equity (unaudited)
As at 30 June 2021
|
|
Share
Capital and Premium |
Revenue
Reserve |
Capital
Reserve |
Other
Reserves |
Total |
|
|
30 June
2021 |
30 June
2021 |
30 June
2021 |
30 June
2021 |
30 June
2021 |
|
Note |
GBP |
GBP |
GBP |
GBP |
GBP |
| Balances as at 1
January 2021 |
|
27,420,824 |
1,954,448 |
22,372,177 |
5,219,838 |
56,967,287 |
| Total comprehensive
income for the period attributable to Ordinary Shareholders |
|
- |
1,223,726 |
11,053,718 |
- |
12,277,444 |
| Dividends |
6 |
- |
(1,818,920) |
- |
- |
(1,818,920) |
| Balances as at 30 June
2021 |
|
27,420,824 |
1,359,254 |
33,425,895 |
5,219,838 |
67,329,311 |
|
|
|
|
|
|
|
|
|
Share
Capital and Premium |
Revenue
Reserve |
Capital
Reserve |
Other
Reserves |
Total |
|
|
30 June
2020 |
30 June
2020 |
30 June
2020 |
30 June
2020 |
30 June
2020 |
|
|
GBP |
GBP |
GBP |
GBP |
GBP |
| Balances as at 1
January 2020 |
|
27,420,824 |
3,417,227 |
37,705,938 |
5,219,838 |
73,763,827 |
| Total comprehensive
income/(loss) for the period attributable to Ordinary
Shareholders |
|
- |
722,804 |
(24,608,253) |
- |
(23,885,449) |
| Dividends |
6 |
- |
(1,818,920) |
- |
- |
(1,818,920) |
| Balances as at 30 June
2020 |
|
27,420,824 |
2,321,111 |
13,097,685 |
5,219,838 |
48,059,458 |
The Notes to the Condensed Financial Statements form an integral
part of the Unaudited Condensed Interim Financial Statements.
Notes to the Condensed Financial
Statements (unaudited)
For the period ended 30 June
2021
- ACCOUNTING POLICIES
(a) Basis of
Preparation
The for the six months ended 30 June
2021 have been prepared in accordance with IAS 34 “Interim
Financial Reporting” as adopted by the European Union (“EU”), the
AIC’s SORP (as revised in January
2017) and applicable legal and regulatory requirements of
the Companies (Guernsey) Law, 2008.
The Unaudited Condensed Interim Financial Statements do not
include all the information and disclosures in the Annual Financial
Statements and should be read in conjunction with the Company’s
Annual Report and Audited Financial Statements for the year ended
31 December 2020.
The accounting policies and methods of computation followed in
these Unaudited Condensed Interim Financial Statements are
consistent with those of the latest Annual Audited Financial
Statement for the year ended 31 December
2020 which were prepared in accordance with International
Financial Reporting Standards (“IFRS”) as adopted by the EU.
Given the expectation that the Company will be placed into
voluntary liquidation in or around October
2021, these Interim Financial Statements for the period to
30 June 2021 have been prepared on a
break-up basis. As a result, all assets are classified as current
and are stated at their estimated recoverable amounts and all
creditors are classified as falling due within one year. As the
assets of the Company are already stated at amounts which
approximate their fair value this has not resulted in any
adjustment to the Net Asset Value of the Company and the Directors
believe that fair value equates to recoverable amounts. A provision
towards certain costs associated with the scheme of reconstruction
has been included within these Interim Financial Statements.
(b) Presentation of
Information
The Unaudited Condensed Interim Financial Statements have been
prepared on a break-up basis. As a result, all assets are
classified as current and are stated at their estimated recoverable
amounts and all creditors are classified as falling due within one
year.
In order to better reflect the activities of an Investment
Company and in accordance with the guidance issued by the
Association of the Investment Companies (“AIC”), supplementary
information which analyses the Condensed Statement of Comprehensive
Income between items of capital and revenue nature has been
presented within the Condensed Statement of Comprehensive
Income.
2 OPERATING
SEGMENTS
The Company has two reportable segments, being the Income
Portfolio and the Smaller Companies Portfolio. Each of these
portfolios is managed separately as they entail different
investment objectives and strategies and contain investments in
different products.
For each of the portfolios, the Board reviews internal
management reports on a quarterly basis. The objectives and
principal investment products of the respective reportable segments
are as follows:
|
Investment objectives and
principal investments products |
| Income Portfolio |
To enhance income and control risk
by investing in fixed interest securities, including convertible
securities, structured investments across a range of asset classes,
shares of other investment companies, including property investment
companies, and open-ended fixed interest funds. |
| Small Companies Portfolio |
To maximise income and capital
growth through investments in smaller capitalised UK
companies. |
Information regarding the results of each reportable segment
follows. Performance is measured based on the change in value of
each portfolio, as included in the internal management reports that
are reviewed by the Board.
Segmental information is measured on the same basis as that used
in the preparation of the Company’s Unaudited Condensed Interim
Financial Statements.
|
|
|
|
|
Smaller |
|
|
|
|
|
|
Income |
Companies |
|
|
|
|
|
|
Portfolio |
Portfolio |
Unallocated |
Total |
|
|
|
|
GBP |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
|
| 30 June
2021 |
|
|
|
|
|
|
| External
revenues: |
|
|
|
|
|
|
| Net
(losses)/gains on financial assets designated as at fair value
through profit or loss |
(244,107) |
12,222,159 |
- |
11,978,052 |
| Gains on
derivative financial instruments |
27,486 |
- |
- |
27,486 |
| Investment
income: |
|
|
|
|
| Dividend
income |
|
|
65,620 |
1,400,188 |
- |
1,465,808 |
| Bond
income |
|
|
197,806 |
- |
- |
197,806 |
| Foreign
exchange loss |
|
|
- |
- |
(12,865) |
(12,865) |
| Total
income/(losses) |
|
|
46,805 |
13,622,347 |
(12,865) |
13,656,287 |
|
Expenses |
|
|
- |
- |
(738,658) |
(835,158) |
| Interest
payable and similar charges |
- |
- |
(640,185) |
(640,185) |
| Total
comprehensive income/(loss) for the period attributable to
shareholders |
46,805 |
13,622,347 |
(1,391,708) |
12,277,444 |
|
|
|
|
|
Smaller |
|
|
|
|
|
|
Income |
Companies |
|
|
|
|
|
|
Portfolio |
Portfolio |
Unallocated |
Total |
|
|
|
|
GBP |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
|
| 30 June
2021 |
|
|
|
|
|
|
| Financial
assets designated as at fair value through profit or loss |
17,359,471 |
82,826,096 |
- |
100,185,567 |
|
Receivables |
|
|
308,351 |
29,291 |
- |
337,642 |
| Cash and
cash equivalents |
|
3,221,510 |
(1,304,221) |
- |
1,917,289 |
| Total
assets |
|
|
20,889,332 |
81,551,166 |
- |
102,440,498 |
| Derivative
financial instruments |
|
7,734 |
- |
- |
7,734 |
| Payables |
|
|
|
- |
- |
35,006,953 |
35,006,953 |
| Total
current liabilities |
|
|
7,734 |
- |
35,006,953 |
35,006,953 |
|
|
|
|
|
Smaller |
|
|
|
|
|
|
Income |
Companies |
|
|
|
|
|
|
Portfolio |
Portfolio |
Unallocated |
Total |
|
|
|
|
GBP |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
|
| 30 June
2020 |
|
|
|
|
|
|
| External
revenues: |
|
|
|
|
|
|
| Net losses
on financial assets designated as at fair value through profit or
loss |
(188,583) |
(23,190,583) |
- |
(23,379,166) |
| Losses on
derivative financial instruments |
(263,264) |
- |
- |
(263,264) |
| Investment
income: |
|
|
|
|
|
|
| Dividend
income |
|
|
73,882 |
747,302 |
- |
821,184 |
| Bond
income |
|
|
226,928 |
- |
- |
226,928 |
| Total losses |
|
|
|
(151,037) |
(22,443,281) |
- |
(22,594,318) |
| Expenses |
|
|
|
- |
- |
(671,404) |
(671,404) |
| Interest
payable and similar charges |
|
- |
- |
(619,728) |
(619,728) |
| Total
comprehensive loss for the year attributable to
shareholders |
(151,037) |
(22,443,281) |
(1,291,132) |
(23,885,450) |
|
|
|
|
|
Smaller |
|
|
|
|
|
|
Income |
Companies |
|
|
|
|
|
|
Portfolio |
Portfolio |
Unallocated |
Total |
|
|
|
|
GBP |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
|
| 30 June
2020 |
|
|
|
|
|
|
| Financial
assets designated as at fair value through profit or loss |
19,318,940 |
61,061,781 |
- |
80,380,721 |
| Receivables |
|
|
|
322,622 |
14,580 |
- |
337,202 |
| Derivative
financial instruments |
|
28,440 |
- |
- |
28,440 |
| Cash and
cash equivalents |
|
1,696,763 |
(249,329) |
- |
1,447,434 |
| Total assets |
|
|
|
21,366,765 |
60,827,032 |
- |
82,193,797 |
| Derivative
financial instruments |
|
26,245 |
- |
- |
26,245 |
| Payables |
|
|
|
- |
- |
767,259 |
767,259 |
| Total
current liabilities |
|
|
26,245 |
- |
767,259 |
793,504 |
Geographical Information
In presenting information on the basis of geographical segments,
segment revenue and segment assets are based on the domicile
countries of the investees and counterparties to derivative
transactions. The table below excludes net gains on financial
assets designated as at fair value through profit or loss and gains
or losses on derivative instruments.
|
|
|
|
|
|
|
Other |
|
Rest
of |
|
|
|
|
|
UK |
|
Guernsey |
|
Europe |
|
the
world |
|
Total |
|
|
|
GBP |
|
GBP |
|
GBP |
|
GBP |
|
GBP |
| 30 June
2021 |
|
|
|
|
|
|
|
|
|
|
|
External revenues |
|
|
|
|
|
|
|
|
|
|
| Total
Revenue |
|
1,314,508 |
|
29,499 |
|
35,567 |
|
284,040 |
|
1,663,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
Rest
of |
|
|
|
|
|
UK |
|
Guernsey |
|
Europe |
|
the
world |
|
Total |
|
|
|
GBP |
|
GBP |
|
GBP |
|
GBP |
|
GBP |
| 30 June
2020 |
|
|
|
|
|
|
|
|
|
|
|
External revenues |
|
|
|
|
|
|
|
|
|
|
| Total
Revenue |
|
871,327 |
|
52,409 |
|
31,653 |
|
92,723 |
|
1,048,112 |
The Company did not hold any non-current assets during the
period other than financial instruments (30
June 2020: £nil).
Major Customers
The Company regards its shareholders as customers. As at the
period ended 30 June 2021, the
Company had no shareholders with a holding greater than 10%.
(30 June 2020: nil).
3
INVESTMENT INCOME
|
|
|
|
Period ended |
|
Period ended |
|
|
|
|
30
June 2021 |
|
30
June 2020 |
|
|
|
|
GBP |
|
GBP |
| Dividend income |
|
|
|
1,465,808 |
|
821,184 |
| Bond income |
|
|
|
197,806 |
|
226,928 |
|
|
|
|
1,663,614 |
|
1,048,112 |
4
EXPENSES
|
|
|
|
Period ended 30 June 2021 |
Period ended 30 June 2020 |
|
|
|
Revenue |
|
Capital |
|
Total |
Revenue |
|
Capital |
|
Total |
|
|
|
GBP |
|
GBP |
|
GBP |
GBP |
|
GBP |
|
GBP |
| Manager's
fee* |
|
84,444 |
|
253,332 |
|
337,776 |
76,028 |
|
228,083 |
|
304,111 |
|
Administrator's fee** |
|
41,655 |
|
- |
|
41,655 |
42,545 |
|
- |
|
42,545 |
|
Registrar's fee |
|
16,956 |
|
- |
|
16,956 |
22,719 |
|
- |
|
22,719 |
| Directors'
fees |
|
73,750 |
|
- |
|
73,750 |
71,781 |
|
- |
|
71,781 |
| Custody
fees |
|
12,461 |
|
- |
|
12,461 |
12,388 |
|
- |
|
12,388 |
| Audit fees |
|
|
18,352 |
|
- |
|
18,352 |
18,473 |
|
- |
|
18,473 |
|
Restructuring costs |
|
113,500 |
|
- |
|
113,500 |
- |
|
- |
|
- |
| Directors'
and Officers' insurance |
2,512 |
|
- |
|
2,512 |
2,820 |
|
- |
|
2,820 |
| Annual fees |
|
|
12,050 |
|
- |
|
12,050 |
15,463 |
|
- |
|
15,463 |
|
Commissions and charges paid |
- |
|
45,227 |
|
45,227 |
- |
|
78,399 |
|
78,399 |
| Legal and
professional fees |
27,604 |
|
- |
|
27,604 |
10,043 |
|
- |
|
10,043 |
| Broker fees |
|
|
9,937 |
|
- |
|
9,937 |
23,763 |
|
- |
|
23,763 |
| Bank
interest |
|
296 |
|
- |
|
296 |
2,849 |
|
- |
|
2,849 |
| Sundry
costs |
|
26,582 |
|
- |
|
26,582 |
28,607 |
|
- |
|
28,607 |
|
(Gains)/loss on foreign exchange |
(211) |
|
13,076 |
|
12,865 |
(2,170) |
|
39,613 |
|
37,443 |
|
|
|
439,888 |
|
311,635 |
|
751,523 |
325,309 |
|
346,095 |
|
671,404 |
Manager’s Fee
*The Company has entered into a Management Agreement with
Premier Asset Management (Guernsey) Limited, a wholly-owned,
Guernsey incorporated subsidiary of Premier Miton Group PLC. The
Investment Manager receives a management fee of 0.7% per annum of
total assets (subject to a minimum of £100,000) calculated monthly
and payable quarterly in arrears, out of which it pays fees to the
Investment Advisers. The Investment Manager is also paid a
shareholder communication and support fee of £3,100, annually. The
Company has entered into an agreement with the Investment Manager
for the provision of AIFM reporting services for a fee of £19,450
per annum from 1 September 2017.
Notice of termination was served on 13 April
2021 and the Management Agreement will be terminated
effective 13 October 2021.
Performance Fee
The Investment Manager is also entitled to a performance fee
equal to 15% of any excess of the NAV per Ordinary Share (together
with any dividends paid) over the higher of the first benchmark or
the second benchmark. The first benchmark is the NAV per share
immediately following the tender in January
2007 increasing at 10% per annum compound. The second
benchmark is the highest NAV per Ordinary Share as of the last
calculation day in any preceding financial period commencing after
completion of the tender in January
2007 in respect of which a performance fee has been paid
compounded at 10% per annum. A performance fee amounting to £nil
was accrued for the period ended 30 June
2021 (31 December 2020:
£nil).
Administrator’s Fee
**The Company entered into an Administration Agreement with
Northern Trust International Fund Administration Services
(Guernsey) Limited on 1 April 2015.
The Company shall pay the Administrator a fee of 12 basis points
per annum on the net assets between £0 – £100 million, 10 basis
points per annum on the net assets between £100 million – £150
million and 8 basis points per annum on the net assets over £150
million subject to a minimum of £7,000 per month. The
Administration Agreement may be terminated by either party on
ninety days notice.
Restructuring costs
As noted in the Statement of Principal Risks and Uncertainties
under going concern, a provision has been made for certain
restructuring costs.
5
INTEREST PAYABLE AND SIMILAR CHARGES
|
|
|
|
Period ended 30 June 2021 |
|
|
|
|
Revenue |
Capital |
Total |
|
|
|
|
GBP |
GBP |
GBP |
|
Appropriation in respect of ZDP Shares |
|
- |
640,185 |
640,185 |
|
|
|
|
- |
640,185 |
640,185 |
|
|
|
|
|
|
|
|
|
|
|
Period ended 30 June 2020 |
|
|
|
|
Revenue |
Capital |
Total |
|
|
|
|
GBP |
GBP |
GBP |
|
Appropriation in respect of ZDP Shares |
|
- |
619,728 |
619,728 |
|
|
|
|
- |
619,728 |
619,728 |
6
DIVIDENDS IN RESPECT OF ORDINARY SHARE
|
|
|
Period ended |
Period ended |
|
|
|
30 June 2021 |
30 June 2020 |
|
|
|
|
|
Pence |
|
|
Pence |
|
|
|
GBP |
|
per
share |
GBP |
|
per
share |
| First
interim payment |
|
909,460 |
|
5.75 |
909,460 |
|
5.75 |
| Second
interim payment |
|
909,460 |
|
5.75 |
909,460 |
|
5.75 |
|
|
|
1,818,920 |
|
11.50 |
1,818,920 |
|
11.50 |
Further details on the Company’s dividend policy can be found on
Investment Objectives and Policy.
7
EARNINGS PER SHARE
Ordinary Shares
The total gain per Ordinary Share (per IFRS) is based on the
total return on ordinary activities for the period attributable to
Ordinary Shareholders of £12,277,444 (30
June 2020: loss of £23,885,450) and on 15,816,687
(30 June 2020: 15,816,687) shares,
being the weighted average number of shares in issue during the
period. There are no dilutive instruments and therefore basic and
diluted gains per share are identical.
The revenue return per Ordinary Share (per IFRS) is based on the
revenue return on ordinary activities for the period attributable
to Ordinary Shareholders of £ 1,223,726 (30
June 2020 revenue return of: £722,804) and on 15,816,687
(30 June 2020: 15,816,687) shares,
being the weighted average number of shares in issue during the
period. There are no dilutive instruments and therefore basic and
diluted gains per share are identical.
The capital gain per Ordinary Share (per IFRS) is based on the
capital return on ordinary activities for the period attributable
to Ordinary Shareholders of £11,053,718 (30
June 2020: capital loss of £24,608,253) and on 15,816,687
(30 June 2020: 15,816,687) shares,
being the weighted average number of shares in issue during the
period. There are no dilutive instruments and therefore basic and
diluted gains per share are identical.
ZDP Shares
The return per ZDP Share is based on the appropriation in
respect of ZDP Shares, the amortisation of ZDP Share issue costs
and ZDP Share issue costs totalling £640,185 (30 June 2020: £619,728) and on 21,230,989
(30 June 2020: 21,230,989) shares,
being the weighted average number of ZDP Shares in issue during the
period.
8
FINANCIAL ASSETS DESIGNATED AS AT FAIR VALUE THROUGH PROFIT OR
LOSS
|
|
|
|
|
|
30
June 2021 |
|
31
December 2020 |
|
|
|
|
|
|
GBP |
|
GBP |
|
INVESTMENTS |
|
|
|
|
|
|
|
| Opening
portfolio cost |
|
|
|
|
86,657,800 |
|
87,991,361 |
| Purchases
at cost |
|
|
|
|
12,953,049 |
|
25,538,145 |
| Sales |
|
|
|
|
|
|
|
|
| - proceeds |
|
|
|
|
|
(14,749,270) |
|
(25,806,486) |
| - realised
gains on sales |
|
|
|
|
3,207,197 |
|
6,229,665 |
| - realised
losses on sales |
|
|
|
|
(1,019,648) |
|
(7,294,885) |
| Closing
book cost |
|
|
|
|
87,049,128 |
|
86,657,800 |
| Unrealised
appreciation on investments |
|
|
|
18,112,924 |
|
12,291,265 |
| Unrealised
depreciation on investments |
|
|
|
(4,976,485) |
|
(8,945,329) |
| Fair value |
|
|
|
|
|
100,185,567 |
|
90,003,736 |
|
|
|
|
|
|
|
|
|
| Realised
gains on sales |
|
|
|
|
3,207,197 |
|
6,229,665 |
| Realised
losses on sales |
|
|
|
|
(1,019,648) |
|
(7,294,885) |
|
Increase/(decrease) in unrealised appreciation on investments |
|
5,821,659 |
|
(8,211,921) |
|
Decrease/(increase) in unrealised depreciation on investments |
|
3,968,844 |
|
(4,239,264) |
| Net
gains/(losses) on financial assets designated as at fair value
through profit or loss |
11,978,052 |
|
(13,516,405) |
As at 30 June 2021, the closing
fair value of investments comprises £82,826,097 (31 December 2020: £69,305,528) of Smaller
Companies Portfolio, £17,359,470 (31
December 2020: £20,698,208) of Income Portfolio.
IFRS 13 requires the fair value of investments to be disclosed
by the source of inputs using a three-level hierarchy as detailed
below:
Quoted prices (unadjusted) in active markets for identical
assets or liabilities (Level 1);
Inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (as prices)
or indirectly (derived from prices) (Level 2); and
Inputs for the asset or liability that are not based on
observable market data (unobservable inputs) (Level 3).
Details of the value of each classification are listed in the
table below. Values are based on the market value of the
investments as at the reporting date:
Financial Assets Designated as at Fair
Value Through Profit or Loss
|
|
|
30 June
2021 |
|
30 June
2021 |
|
31 Dec
2020 |
|
31 Dec
2020 |
|
|
|
Market
value |
|
Market
value |
|
Market
value |
|
Market
value |
|
|
|
% |
|
GBP |
|
% |
|
GBP |
| Level 1 |
|
|
85.20 |
|
85,359,732 |
|
81.36 |
|
73,221,136 |
| Level 2 |
|
|
14.10 |
|
14,128,965 |
|
17.87 |
|
16,085,730 |
| Level 3 |
|
|
0.70 |
|
696,870 |
|
0.77 |
|
696,870 |
| Total |
|
|
100.00 |
|
100,185,567 |
|
100.00 |
|
90,003,736 |
Bonds and structured investments are priced by reference to
market quotations which incorporate assessment of yield, maturity
and the instrument’s terms and conditions.
APQ Global Limited 3.5% CULS 30/09/2024 is held at level 3 due to low
liquidity. The value of this investment is currently derived by
adjusting the latest available broker price and applying a 10%
discount to reflect the lack of liquidity in this investment. The
unadjusted market value of the investment is GBP 774,300. The discount of 10% represents a
reduction in value of GBP 77,430. If
the discount were to be increased or decreased to 25% the value of
APQ Global Limited 3.5% CULS 30/09/2024 would increase or decrease by
GBP 193,575.
Derivative Financial Assets and
Liabilities Designated as at Fair Value Through Profit or Loss
|
|
|
30 June
2021 |
|
30 June
2021 |
|
31 Dec
2020 |
|
31 Dec
2020 |
|
|
|
Market
value |
|
Market
value |
|
Market
value |
|
Market
value |
|
|
|
% |
|
GBP |
|
% |
|
GBP |
| Level 1
derivative financial assets |
- |
|
- |
|
- |
|
- |
| Level 2
derivative financial assets |
- |
|
- |
|
0.15 |
|
132,269 |
| Level 2
derivative financial liabilities |
(0.01) |
|
(7,734) |
|
- |
|
- |
It is the Company’s policy to recognise all the transfers into
the levels and transfers out of the levels at the end of the
reporting year. Transfers into each level shall be disclosed and
discussed separately from transfers of each level.
The derivative financial instruments held by the Company have
been classified as Level 1 and 2. This is in accordance with the
fair value hierarchy. The Company uses widely recognised valuation
models for determining fair value of derivative financial
instruments that use only observable market data and require little
management judgement and estimation.
9
RECEIVABLES
|
|
|
|
|
|
|
30
June 2021 |
|
31
December 2020 |
|
|
|
|
|
|
|
GBP |
|
GBP |
|
|
|
|
|
|
|
|
|
|
| Due from brokers |
|
|
|
|
|
|
15,544 |
|
13,688 |
| Prepayments |
|
|
|
|
|
|
13,747 |
|
7,314 |
| Accrued
investment income |
|
|
|
308,351 |
|
437,351 |
|
|
|
|
|
|
|
337,642 |
|
458,353 |
10
PAYABLES
|
|
|
|
|
|
|
30
June 2021 |
|
31
December 2020 |
|
|
|
|
|
|
|
GBP |
|
GBP |
|
|
|
|
|
|
|
|
|
|
| Accrued expenses |
|
|
|
|
|
|
210,079 |
|
104,284 |
| Trade creditors |
|
|
|
|
|
|
177,285 |
|
152,849 |
|
|
|
|
|
|
|
387,364 |
|
257,133 |
11 ZDP
SHARES
|
|
|
|
|
|
|
30
June 2021 |
|
31
December 2020 |
|
|
|
|
|
|
|
GBP |
|
GBP |
| ZDP Share
entitlement |
|
|
|
|
34,619,589 |
|
33,979,404 |
| The above
entitlement comprises the following: |
|
|
|
| 21,230,989
ZDP Shares issued to date up to 30 Jun 2021 |
22,831,682 |
|
- |
| 21,230,989
ZDP Shares issued to date up to 31 Dec 2020 |
- |
|
22,831,682 |
| ZDP Premium |
|
|
|
|
|
|
(3,257) |
|
(5,680) |
|
Appropriation in respect of ZDP Shares |
|
11,787,907 |
|
11,147,722 |
| ZDP value
(calculated in accordance with the Articles) |
34,616,332 |
|
33,973,724 |
| Add back
ZDP Premium |
|
|
|
|
3,257 |
|
5,680 |
| ZDP value
(calculated in accordance with IFRS) |
|
34,619,589 |
|
33,979,404 |
The fair value of the ZDP Shares as at 30
June 2021 was £34,288,047 (31
December 2020: £33,332,653). The ZDP Shares are classified
under Level 1 based on unadjusted quoted prices in active markets.
Since valuations are based on quoted prices that are readily and
regularly available in an active market, the valuation does not
entail a significant degree of judgement (2020: Level 1).
A Continuation Offer proposal to ZDP Shareholders was published
in November 2016, whereby such
holders were given an opportunity to either receive their 2017
Final Capital Entitlement of 138p or to continue their investment
in the existing ZDP Shares. Shareholders approved the scheme and
91.4% of ZDP Shareholders elected to remain invested.
Following the proposals, 19,523,014 ZDP Shares were elected for
the Continuation Offer with a further 1,842,207 New ZDP Shares
being issued through an Initial Placing at 140.0p which represented
a premium of 1.4% to the opening NAV per New ZDP Share.
1,834,160 ZDP Shares were elected for Redemption at their 2017
Final Capital Entitlement of 138p.
ZDP Shares carry no entitlement to income distributions to be
made by the Company. The ZDP Shares will not pay dividends but have
a final capital entitlement at the end of their life on
28 February 2022 of 167.2 pence following the extension of the life
of the existing ZDP Shares from 31 January
2017.
It should be noted that the predetermined capital entitlement of
a ZDP Share is not guaranteed and is dependent upon the Company’s
gross assets being sufficient on 28 February
2022 to meet the final capital entitlement of ZDP
Shares.
Under the Articles of Incorporation, the Company is obliged to
redeem all of the ZDP Shares on 28 February
2022 (if such redemption has not already been effected).
The number of authorised ZDP Shares is 50,000,000. The number of
issued ZDP Shares is 21,230,989 (31 December
2020: 21,230,989). The non-amortisation of the ZDP Shares in
line with the Articles has the effect of increasing the NAV per
Ordinary Share by 0.10 pence.
12
SHARE CAPITAL AND PREMIUM
| Authorised |
|
|
|
|
|
GBP |
GBP |
| Ordinary
Shares of 1p each |
|
|
|
unlimited |
unlimited |
|
|
|
|
|
|
30 June
2021 |
31
December 2020 |
|
|
|
|
|
|
Number
of |
Number
of |
| Issued |
|
|
|
|
|
Shares |
Shares |
| Number of
shares in issue at the start of the period/year |
|
15,816,687 |
15,816,687 |
| Number of
shares in issue at the end of the period/year |
|
15,816,687 |
15,816,687 |
| Issued and
fully paid capital at the end of the period/year |
|
£196,606 |
£196,606 |
|
|
|
|
|
|
|
|
|
|
|
|
Share
Capital |
Share
Premium |
Total |
Total |
|
|
|
|
30 June
2021 |
30 June
2021 |
30 June
2021 |
31
December 2020 |
|
|
|
|
GBP |
GBP |
GBP |
GBP |
| Opening
share capital and premium |
|
196,606 |
27,224,218 |
27,420,824 |
27,420,824 |
| Closing
share capital and premium |
|
196,606 |
27,224,218 |
27,420,824 |
27,420,824 |
The Ordinary Shares (excluding treasury shares) are entitled to
participate in all dividends and distributions of the Company. On a
winding-up holders of Ordinary Shares are entitled to participate
in the distribution and the holders of Ordinary Shares are entitled
to receive notice of and attend and vote at all General Meetings of
the Company.
The issued and fully paid capital as at 30 June 2021 was £196,606 (31 December 2020: £196,606).
13
OTHER RESERVES
TREASURY RESERVE
|
|
|
|
30
June 2021 |
|
31
December 2020 |
|
|
|
|
GBP |
|
GBP |
| Balance as
at the beginning of the period/year |
(4,780,162) |
|
(4,780,162) |
| Balance as
at the end of the period/year |
(4,780,162) |
|
(4,780,162) |
The other reserves presented on the Statement of Financial
Position comprise the treasury reserve of (£4,780,162) and special
reserve of £10,000,000 totalling £5,219,838.
ORDINARY SHARES HELD IN TREASURY
|
|
|
|
30
June 2021 |
|
31
December 2020 |
|
|
|
|
No.
Shares |
|
No.
Shares |
| Balance as
at the beginning of the period/year |
1,325,972 |
|
1,325,972 |
| Balance as
at the end of the period/year |
1,325,972 |
|
1,325,972 |
A Special reserve of £10,000,000 was created on the cancellation
of part of the Company’s Share premium account.
14
RELATED PARTIES
Premier Asset Management (Guernsey) Limited is the Company’s
Investment Manager and operates under the terms of the Management
Agreement in force which delegates its authority over the Company’s
investment portfolios.
£337,776 (30 June 2020: £304,111)
of costs were incurred by the Company with this related party in
the period, of which £177,285 (31 December
2020: £152,849) was due to this related party as at
30 June 2021.
During the period ended 30 June
2021, £nil (30 June 2020:
£nil) was charged as performance fees of which, £nil (31 December 2020: £nil) remained payable at
period end.
The Directors’ remuneration is disclosed in Note 4.
David Warr holds 63,000
(31 December 2020: 63,000) Ordinary
Shares in the capital of the Company, which represents an interest
of 0.40% (31 December 2020: 0.40%) of
the Company’s Ordinary Shares in issue as at 30 June 2021.
Nigel Sidebottom holds 4,366
(31 December 2020: 4,366) Ordinary
Shares in the capital of the Company, which represented an interest
of 0.03% (31 December 2020: 0.03%) of
the Company’s Ordinary Shares in issue as at 30 June 2021, and 5,205 (31 December 2020: 5,205) ZDP Shares in the
capital of the Company, which represented an interest of 0.02%
(31 December 2020: 0.02%) of the
Company’s ZDP Shares in issue as at 30 June
2021.
Nigel Ward holds 7,000 Ordinary
Shares in the capital of the Company, via a nominee account
(31 December 2020: 7,000). This
represents an interest of 0.04% (31 December
2020: 0.04%), and 10,000 (31 December
2020: 10,000) ZDP Shares in the capital of the Company,
which represented an interest of 0.05% (31
December 2020: 0.05%) of the Company’s ZDP Shares in issue
as at 30 June 2021.
As at 30 June 2021, employees of
the Investment Manager held interest in 13,890 Ordinary Shares of
the Company representing 0.09% of the issued share capital.
15
SUBSEQUENT EVENTS
These Unaudited Condensed Interim Financial Statements were
approved for issue by the Board on 16
September 2021. Subsequent events have been evaluated until
this date.
A dividend of 5.75p was declared on 10
August 2021 and is expected to be paid to ordinary
shareholders on 30 September
2021.
As at 10 September 2021 the
published NAV per Ordinary Share for the Company was 449.09p. This
represents an increase of 5.17% from 30 June
2021 published NAV of 427.03p.
On 1 September 2021 the Board
announced a scheme of reconstruction offering a rollover into the
Unicorn UK Income Fund or a cash exit. These proposals, which will
involve putting the Company into voluntary liquidation and the
early redemption of the ZDP shares, will be put to shareholders at
General Meetings in or around October
2021.
Directors, Advisers and Contacts
Directors
John Nigel Ward (Chairman)
David John Warr
Nigel Sidebottom
Sharon Parr
Shareholders are welcome to contact the Chairman directly by
emailing at:
Acorn_Income_Fund_Limited@ntrs.com |
Corporate
Broker
N+1 Singer Advisory LLP
One Bartholomew Lane
London
EC2N 2AX
Tel: 0207 4963000
(appointed 1 August 2020) |
Investment
Manager
Premier Asset Management (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: 01483 400430
Contact: Claire Long |
Numis Securities
Limited
10 Paternoster Square
London
EC4M 7LT
Tel: 0207 2601000
(until 31 July 2020) |
Investment Adviser
– Smaller Companies Portfolio
Unicorn Asset Management Limited
Preacher’s Court
The Charterhouse
Charterhouse Square
London
EC1M 6AU
Tel: 0207 2530889
Contact: Simon Moon |
Independent
Auditor
KPMG Channel Islands Limited
Glategny Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 1WR |
Investment Adviser
– Income Portfolio
Premier Fund Managers Limited
Eastgate Court
High Street
Guildford
GU1 3DE
Tel: 01483 400430
Contact: Claire Long |
Registrar
JTC Registrars Limited
PO Box 156
Ground Floor
Dorey Court
Admiral Park
St Peter Port
Guernsey
GY1 4EU
Tel: 01481 702400
Email: registrars@jtcgroup.com |
Administrator and
Secretary
Northern Trust International Fund Administration Services
(Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Email: Team_Acorn@ntrs.com |
Company’s
Registered Office
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL |
Custodian
Northern Trust (Guernsey) Limited
PO Box 71
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3DA |
Company
Details
Company Number: 34778
GIIN Number: CY0IXM.99999.SL.831
Ordinary Shares
ISIN: GB0004829437
Ticker: AIF
ZDP Shares
ISIN: GGOOBYMJ7X48
Ticker: AIFZ |