Jupiter Green
Investment Trust plc ('the Company')
Legal Entity Identifier:
549300MFRCR13CT1L845
Half Yearly
Financial Report for the six months to 30
September 2024 (unaudited)
Financial
Highlights
for
the
six
months
to
30
September
2024
|
Capital
Performance
|
|
|
|
|
|
30
September
2024
|
31
March
2024
|
|
|
Total assets less current
liabilities
(£’000)
|
51,243
|
50,318
|
|
|
|
|
|
|
|
Ordinary
Share
Performance
|
|
|
|
|
|
30
September
2024
|
31
March
2024
|
%
change
|
|
Mid market price (p)
|
216.00
|
181.00
|
+19.3
|
|
Undiluted
net
asset
value
per
ordinary
share
(p)
|
270.05
|
263.59
|
+2.5
|
|
Diluted
net
asset
value
per
ordinary
share
(p)*
|
269.46
|
263.13
|
+2.4
|
|
MSCI World Small Cap Total Return Index
|
432.13
|
435.48
|
-0.8
|
|
Discount
to
net
asset
value
(%)
|
20.01
|
31.33
|
|
|
Ongoing
charges
ratio
(%)
excluding
finance
costs
|
1.64
|
1.54
|
|
* Being
the
net
asset
value
per
share
assuming
that
all
annual
subscription
rights
are
taken
up.
Chairman’s
statement
I am pleased to present
the Interim Report and Accounts for the Jupiter Green Investment
Trust PLC (‘the Company’) for the six months to 30 September 2024 and to outline a strategic
update relating to our future plans.
Performance
The Net Asset Value of the
Company delivered a total return of 2.5%, vs - 0.8% for the MSCI
World Small Cap (£) Index whilst the share price total return
delivered 19.3% over the period.
The market context during
the period was broadly supportive for the Company’s investment
universe of environmental solutions businesses. Structural growth
drivers supported by electrification, energy efficiency, water
infrastructure development and circular economy proved resilient,
establishing bifurcation of performance against broader industrial
end-markets where slowing manufacturing and services activity
levels were observed. Weakening consumer sentiment continued to
impact the automotive industry, resulting in deceleration of
capital investment plans linked to vehicle electrification. The
falling interest rate environment was supportive of manufacturers
of renewable energy equipment, as well as developers and operators
of renewable energy projects.
Further commentary on the
portfolio’s performance and investment outlook is provided in the
Investment Advisor’s report.
Scheme of
Reconstruction
The Company
was launched in 2006 as amongst the first collective investment
funds with a sole focus on Environmental Solutions investing. Since
that time, the Board has sought to differentiate the Company,
making long-term strategic decisions including most recently in
September 2020 when the Company’s
portfolio pivoted towards a smaller-company focus that included an
emphasis on earlier-stage innovation.
While the Board remains
confident in the long-term prospects for Environmental Solutions
investing, I noted
within the 2024 Annual Report & Accounts that owing to the
Company’s relatively small size and a challenging environment for
Investment Trusts, the Board was evaluating options for the future
of the business in recognition that it may be in the best interests
of all shareholders for the Company not to continue in its present
form.
The Board has therefore
concluded the evaluation of the options available to us and today
announces it has decided to propose a scheme of reconstruction and
voluntarily liquidation of the Company (the
“Scheme”).
Whilst the Board has taken
steps to enhance value for shareholders through the ongoing share
buyback programme, we have nonetheless concluded that due to the
structural nature of the Company’s challenges – in particular the
persistent discount to Net Asset Value and relatively low liquidity
that prevents larger investors from buying Company shares – the
interests of shareholders are best served through a reconstruction
that also provides our shareholders with the option of continuity
for those wishing to retain exposure to the compelling
opportunities presented by the environmental solution
thematic.
Under the Scheme,
shareholders will have the option of electing to (a) roll over
their investment into units in the Jupiter Ecology Fund, a unit
trust providing investors access to the same underlying
environmental solutions themes as the Company and managed by the
same investment team, with a superior performance profile, the
daily liquidity of an open ended fund and lower ongoing costs; or
(b) an uncapped cash exit at a modest discount to Net Asset
Value.
It is expected that the
Scheme will take effect during the first quarter of 2025. A
shareholder Circular and Notice of General Meetings setting out the
full details of the Scheme will be sent to shareholders in due
course.
The detailed proposals in
respect of the Scheme will be contained in a separate Circular and
shareholders are directed towards that document for the calculation
of their entitlements under the Scheme. Shareholders are encouraged
to vote their shares at the General Meetings to be held in respect
of the Scheme and as will be set out in the
Circular.
Discount
management
The Board remains
committed to its stated policy of using share buy-backs with the
intention of ensuring that, in normal market conditions, the market
price of the company’s shares will track their underlying net asset
value. The Board continued to monitor the level at which the
Company’s shares traded throughout the review process, and sought
to minimise future volatility through the prudent use of share
buybacks, as the circumstances required. The Company bought back a
total of 111,012 shares for treasury.
Conclusion
The Board’s conviction
long-term prospects for Environmental Solutions investing remains
high, but we recognise that in the current market environment, a
pragmatic approach is required. The plan outlined today will
provide investors with the opportunity to continue their investment
through a rollover option.
Should the General
Meetings planned for early next year, as to be set out in the
Shareholder Circular, not result in the Scheme of Reconstruction
being completed, the Company will in due course convene an Annual
General Meeting to consider the resolutions necessary for the
Company to continue.
Michael Naylor
Chairman
Investment
Adviser’s Review
Policy
Review
The Company’s approach to
investing in environmental solutions remains focussed on six
environmental solutions themes:
-
Clean Energy: Solutions
enabling the decarbonisation of energy systems with renewable
sources
-
Green Mobility: Solutions
enabling the decarbonisation of transport systems using sustainable
alternatives
-
Green Buildings &
Industry: Solutions enabling the decarbonisation of the built
environment and industrial processes through greater energy and
resource efficiency
-
Sustainable Agriculture
& Land: Solutions enabling sustainable food production,
land-use, and protection of terrestrial habitats
-
Sustainable Oceans &
Freshwater Systems: Solutions enabling sustainable water management
and protection of marine and freshwater habitats
-
The Circular Economy:
Solutions enabling a growing share of resource circularity in the
global economy.
The period saw
particularly strong performance contribution from the Green
Buildings & Industry and Sustainable Water themes. As noted in
the Chairman’s statement, a step-up in investments into water
technologies able to tackle pollutants continues to boost leading
solution providers in this area. Green Buildings & Industry is
the portfolio’s largest allocation and has extended a long period
of positive portfolio contribution, partly given the prospect of
power demand growth to meet the energy needs of Artificial
Intelligence (AI).
This bolstered an already
significant step up in investment into energy grid and power
management solutions. We have been relatively early movers to
recognise the gap between the level of investment needed to make
energy markets affordable, secure and green, with what the broader
investment market is anticipating. This has helped drive returns in
this theme as well as pockets of the Clean Energy theme that sell
into this high-growth, high-return market. AI energy needs are
particularly difficult to predict however, and so we have continued
to trim some of our holdings that have benefitted most from the
change in expectations, namely Prysmian and Monolithic
Power.
Significant portfolio
changes during the period also include a new position in Belimo, a
leading Heating, Ventilation and Air Conditioning (HVAC) control
device manufacturer and is set to benefit from the growing
penetration and upgrade of energy efficient building automation and
control system (BACS) for commercial buildings, as well as
increasing data centre cooling requirements.
We also initiated a
position in the global clean energy developer EDP Renovaies, taking
advantage of an opportunity to buy the company at valuation levels
implying no future growth, driven by peak negative expectations
linked to renewable energy, interest rates and power
prices.
We exited our position in
Johnson Controls, driven by concerns around business growth
prospects versus other HVAC and building control peers after taking
into account the announcement of planned divestitures, as well as
newly raised questions surrounding management.
Elsewhere, we took profits
from Veralto, a global water solutions business, on valuation
grounds given the company has re-rated since the spin-out from
Danaher in late 2023. We are also conscious that Veralto is likely
to be amongst the bidders for DuPont’s (not held) water solutions
business, which we expect may come at a premium.
We added selectively to
companies that we felt where the market was taking a short-term
view, including Borregaard, a company enabling the substitution of
petro-chemical based chemicals with bio-based alternatives. We have
been engaging with the company on management succession and are
confident the business will continue to benefit from a strong
competitive position and sensible strategy into the
long-term.
Investment
Outlook
We have a long-held
conviction that global development is dependent on the natural
world. While we remain highly cognisant of geo-political tensions,
potential macro-economic weaknesses and regulatory risks that
impact upon our investment landscape like any other, we would
highlight that observed changes to the environment, not least
climate indicators, are more severe than
anticipated.
We are also encouraged
that technology and innovation is in many respects now setting the
pace for policy and regulation – a welcome reversal to the previous
relationship and one that will provide resilience should there be a
short-term weakening or reversal of political ambitions related to
environmental protection.
Jon Wallace
Investment
Manager
Jupiter Asset Management
Limited Investment Adviser
Investment
Portfolio as at 30 September
2024
|
|
|
Market
value
|
Percentage
|
|
Company
|
Country
of
Listing
|
£’000
|
of
Portfolio
|
|
|
|
|
|
|
Clean
Harbors
|
United
States
of
America
|
1,751
|
3.4
|
|
Prysmian
|
Italy
|
1,720
|
3.4
|
|
Novonesis
|
Denmark
|
1,700
|
3.4
|
|
Xylem
|
United
States
of
America
|
1,642
|
3.3
|
|
Acuity
Brands
|
United
States
of
America
|
1,635
|
3.2
|
|
Republic
Services
|
United
States
of
America
|
1,568
|
3.1
|
|
Schneider
Electric
|
France
|
1,542
|
3.1
|
|
Waste
Connections
|
Canada
|
1,527
|
3.0
|
|
Veolia
Environnement
|
France
|
1,523
|
3.0
|
|
Borregaard
|
Norway
|
1,490
|
3.0
|
|
Veralto
|
United
States
of
America
|
1,409
|
2.8
|
|
Renewi
|
United
Kingdom
|
1,381
|
2.7
|
|
DSM-Firmenich
|
Switzerland
|
1,370
|
2.7
|
|
Alfa
Laval
|
Sweden
|
1,297
|
2.6
|
|
Infineon
Technologies
|
Germany
|
1,275
|
2.5
|
|
Stantec
|
Canada
|
1,272
|
2.5
|
|
Vestas
Wind
Systems
|
Denmark
|
1,270
|
2.5
|
|
ANSYS
|
United
States
of
America
|
1,221
|
2.4
|
|
Monolithic
Power
Systems
|
United
States
of
America
|
1,205
|
2.4
|
|
Watts Water
Technologies
|
United
States
of
America
|
1,198
|
2.4
|
|
Trimble
|
United
States
of
America
|
1,167
|
2.3
|
|
Belimo
Holdings
|
Switzerland
|
1,155
|
2.3
|
|
Advanced
Drainage
Systems
|
United
States
of
America
|
1,125
|
2.2
|
|
Eurofins
Scientific
|
Luxembourg
|
1,121
|
2.2
|
|
First
Solar
|
United
States
of
America
|
1,103
|
2.2
|
|
Hannon
Armstrong Sustainable Infrastructure Capital,
REIT
|
United
States of America
|
1,080
|
2.1
|
|
TOMRA
Systems
|
Norway
|
1,003
|
2.0
|
|
Azbil
|
Japan
|
987
|
2.0
|
|
Shimano
|
Japan
|
962
|
1.9
|
|
Ormat
Technologies
|
United
States
of
America
|
955
|
1.9
|
|
Littelfuse
|
United
States
of
America
|
917
|
1.8
|
|
Orsted
|
Denmark
|
889
|
1.8
|
|
Atlas
Copco
|
Sweden
|
867
|
1.7
|
|
Corbion
|
Netherlands
|
831
|
1.7
|
|
Brambles
|
Australia
|
792
|
1.6
|
|
Aptiv
|
Jersey
|
745
|
1.5
|
|
Daiseki
|
Japan
|
703
|
1.4
|
|
Flat
Glass
Group
|
China
|
621
|
1.2
|
|
Horiba
|
Japan
|
599
|
1.2
|
|
Sensirion
Holding
|
Switzerland
|
549
|
1.1
|
|
EDP
Renovaveis
|
Spain
|
544
|
1.1
|
|
NextEra
Energy
Partners
|
United
States
of
America
|
538
|
1.1
|
|
Befesa
|
Luxembourg
|
492
|
1.0
|
|
Ceres
Power
Holdings
|
United
Kingdom
|
492
|
1.0
|
|
Greencoat
Renewables
|
Ireland
|
428
|
0.9
|
|
Innergex
Renewable
Energy
|
Canada
|
381
|
0.8
|
|
Hoffmann
Green
Cement
Technologies
|
France
|
196
|
0.4
|
|
SolarEdge
Technologies
|
United
States
of
America
|
92
|
0.2
|
|
Agronomics
Warrant
08/12/2024
|
Isle
of
Man
|
–
|
–
|
|
Total
Investments
|
|
50,330
|
100.0
|
The holdings listed above
are all equity shares unless otherwise stated.
Cross Holdings in
other Investment Companies
As at 30 September 2024, 0.9% of the company’s total
assets was invested in Greencoat Renewables, a UK listed investment
company.
Whilst the requirements of
the UK Listing Authority permit the company to invest up to 10% of
the value of the total assets of the company (before deducting
borrowed money) in other investment companies (including investment
trusts) listed on the Main Market of the London Stock Exchange, it
is the directors’ current intention that the company invests not
more than 5% in other investment companies.
Interim Management
Report
Related Party
Transactions
During the first six
months of the current financial year, no transactions with related
parties have taken place which would have materially affected the
financial position or performance of the company. Details of
related party transactions are contained in the Annual Report and
Accounts for the year ended 31 March
2024.
Principal Risks
and Emerging Uncertainties
The principal risks and
emerging uncertainties faced by the company can be divided into the
following areas:
-
Investment policy and
process;
-
Investment strategy and
share price movements;
-
Climate
Change;
-
Geopolitical;
-
Liquidity
risk;
-
Gearing
risk;
-
Regulatory
risk;
-
Credit and counterparty
risk;
-
Loss of key
personnel;
-
Operational;
and
-
Financial.
The board reported on the
above principal risks and uncertainties in the Annual Report and
Accounts for the year ended 31 March
2024.
Going Concern with
material uncertainty
The directors, having
considered the company’s investment objective, risk management and
capital management policies, the diversified portfolio of readily
realisable securities which can be used to meet short-term funding
commitments and the ability of the company to meet all of its
liabilities and ongoing expenses, are satisfied that the company
has adequate resources to continue in operation for the foreseeable
future. The Board is currently evaluating options for the future of
the business in recognition that it may be in the best interests of
shareholders for the Company not to continue in its present
form.
At this point in time,
there can be no certainty as to the outcome of this evaluation and
the Board will notify the market at the appropriate time. The
directors continue to adopt the going concern basis of accounting
in preparing the accounts.
The financial statements
have been prepared on a going concern basis. In considering this,
the Directors took into account the Company’s investment objective,
risk management policies and capital management policies, the
diversified portfolio of readily realisable securities which can be
used to meet short-term funding commitments and the ability of the
Company to meet all of its liabilities and ongoing expenses. In
determining the appropriateness of the going concern basis, the
Directors considered the operational resilience and ongoing
viability of the Investment Adviser and other key third-party
suppliers. The Directors were satisfied that all key third-party
suppliers continued to operate under business as usual
functionality and that regular monitoring of these measures was in
place. The directors continue to adopt the going concern basis of
accounting in preparing the financial statements.
As part of its assessment,
the board has noted that shareholders will be required to vote on
the continuation of the company at the 2026 AGM.
Directors’
Responsibility Statement
The directors of Jupiter
Green Investment Trust PLC confirm to the best of their
knowledge:
(a) The
condensed set of financial statements have been prepared in
accordance with applicable UK adopted International Accounting
Standards and give a true and fair view of the assets, liabilities,
financial position and profit or loss of the company as at
30 September 2024.
(b) The
Chairman’s Statement, the Investment Adviser’s Review and the
Interim Management Report include a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency
Rules.
(c) The
Interim Management Report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency
Rules.
The Half Yearly Financial
Report has not been audited or reviewed by the company’s
auditor.
For and on behalf
of the board
Michael Naylor
Chairman
Statement of
Comprehensive Income for the six months to 30 September 2024
(unaudited)
|
|
Six
months
to
30
September
2024
|
Six
months
to
30
September
2023
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
Gain/(loss)
on
investments
held
at
fair
value
through
profit or loss (Note 2)
|
–
|
1,289
|
1,289
|
–
|
(5,660)
|
(5,660)
|
|
Foreign
exchange
loss
|
–
|
(121)
|
(121)
|
–
|
(4)
|
(4)
|
|
Income
|
552
|
–
|
552
|
454
|
–
|
454
|
|
Total
income/(loss)
|
552
|
1,168
|
1,720
|
454
|
(5,664)
|
(5,210)
|
|
Investment
management
fee
|
(45)
|
(135)
|
(180)
|
(44)
|
(133)
|
(177)
|
|
Other
expenses
|
(268)
|
–
|
(268)
|
(113)
|
–
|
(113)
|
|
Total
expenses
|
(313)
|
(135)
|
(448)
|
(157)
|
(133)
|
(290)
|
|
Net
return/(loss)
on
ordinary
activities
before
finance
costs and taxation
|
239
|
1,033
|
1,272
|
297
|
(5,797)
|
(5,500)
|
|
Finance
costs
|
(20)
|
(61)
|
(81)
|
(24)
|
(69)
|
(93)
|
|
Return/(loss)
on
ordinary
activities
before
taxation
|
219
|
972
|
1,191
|
273
|
(5,866)
|
(5,593)
|
|
Taxation
|
(61)
|
–
|
(61)
|
(68)
|
–
|
(68)
|
|
Net
return/(loss)
after
taxation
|
158
|
972
|
1,130
|
205
|
(5,866)
|
(5,661)
|
|
Return/(loss)
per
ordinary
share
(Note
3)
|
0.83p
|
5.12p
|
5.95p
|
0.99p
|
(28.36)p
|
(27.37)p
|
The total
column of this statement is the income statement of the Company,
prepared in accordance with UK adopted International Accounting
Standards. The supplementary
revenue
return
and
capital
return
columns
are
both
prepared
under
guidance
produced
by
the
Association of Investment Companies (AIC). All items in the above
statement derive from continuing operations.
No
operations
were
acquired
or
discontinued
during
the
period.
All
income
is
attributable
to
the
equity
holders
of
Jupiter
Green
Investment
Trust
PLC.
There
are
no
minority
interests.
The
financial
information
does
not
constitute
‘accounts’
as
defined
in
section
434
of
the
Companies
Act
2006.
Statement of
Financial Position as at 30 September
2024
|
|
30
September
2024
(unaudited)
£’000
|
31
March
2024
(audited)
£’000
|
|
Non
current
assets
|
|
|
|
Investments
held
at
fair
value
through
profit
or
loss
|
50,330
|
49,686
|
|
Current
assets
|
|
|
|
Prepayments
and
accrued
income
|
123
|
124
|
|
Cash
and
cash
equivalents
|
921
|
3,670
|
|
|
1,044
|
3,794
|
|
Total
assets
|
51,374
|
53,480
|
|
Current
liabilities
|
|
|
|
Other
payables
|
(131)
|
(3,162)
|
|
Total
assets
less
current
liabilities
|
51,243
|
50,318
|
|
Capital
and
reserves
|
|
|
|
Called
up
share
capital
|
34
|
34
|
|
Share
premium
|
2,485
|
2,485
|
|
Redemption
reserve*
|
239
|
239
|
|
Retained
earnings
(Note
5)*
|
48,485
|
47,560
|
|
Total
equity
shareholders’
funds
|
51,243
|
50,318
|
|
Net
asset
value
per
ordinary
share
(Note
6)
|
270.05p
|
263.59p
|
|
Diluted
net
asset
value
per
ordinary
share
|
269.46p
|
263.13p
|
* Under
the company's Articles of Association, dividends may be paid out of
any distributable reserve of the company.
Approved by the board of
directors and authorised for issue on 18 December 2024 and signed on its
behalf by:
Michael Naylor
Chairman
Company Registration
number 05780006
Statement of
changes in Equity for the six months to 30
September 2024
|
For
the
six
months
to
|
Share
Capital
|
Share
Premium
|
Redemption
Reserve
|
Retained
Earnings
|
Total
|
|
30
September
2024
(unaudited)
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
Balance
at
31
March
2024
|
34
|
2,485
|
239
|
47,560
|
50,318
|
|
Net
return
for
the
period
|
–
|
–
|
–
|
1,130
|
1,130
|
|
Ordinary
shares
repurchased
|
–
|
–
|
–
|
(205)
|
(205)
|
|
Balance
at
30
September
2024
|
34
|
2,485
|
239
|
48,485
|
51,243
|
|
|
|
|
|
|
|
|
For
the
six
months
to
|
Share
Capital
|
Share
Premium
|
Redemption
Reserve
|
Retained
Earnings
|
Total
|
|
30
September
2023
(unaudited)
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
Balance
at
31
March
2023
|
34
|
2,468
|
239
|
51,837
|
54,578
|
|
Net
loss
for
the
period
|
–
|
–
|
–
|
(5,661)
|
(5,661)
|
|
Ordinary
shares
reissued
from
treasury
|
–
|
17
|
–
|
19
|
36
|
|
Ordinary
shares
repurchased
|
–
|
–
|
–
|
(1,941)
|
(1,941)
|
|
Balance
at
30
September
2023
|
34
|
2,485
|
239
|
44,254
|
47,012
|
Cash Flow
Statement for the six months to 30 September
2024 (Unaudited)
|
|
2024
£’000
|
2023
£’000
|
|
Cash
flows
from
operating
activities
|
|
|
|
Investment
income
received
(gross)
|
490
|
473
|
|
Deposit
interest
received
|
70
|
23
|
|
Investment
management
fee
paid
|
(207)
|
(214)
|
|
Other
cash
expenses
|
(260)
|
(144)
|
|
Net
cash
inflow
from
operating
activities
before
taxation
|
93
|
138
|
|
Interest
paid
|
(98)
|
(93)
|
|
Taxation
|
(63)
|
(68)
|
|
Net
cash
outflow
from
operating
activities
|
(68)
|
(23)
|
|
Net
cash
flows
from
investing
activities
|
|
|
|
Purchase
of
investments
|
(616)
|
(3,449)
|
|
Sale
of
investments
|
1,261
|
5,719
|
|
Net
cash
inflow
from
investing
activities
|
645
|
2,270
|
|
Cash
flows
from
financing
activities
|
|
|
|
Shares
repurchased
|
(205)
|
(1,941)
|
|
Shares
reissued
from
treasury
|
–
|
36
|
|
Repayment
of
loan
|
(3,000)
|
–
|
|
Net
cash
outflow
from
financing
activities
|
(3,205)
|
(1,905)
|
|
(Decrease)/increase
in
cash
|
(2,628)
|
342
|
|
Cash
and
cash
equivalents
at
start
of
period
|
3,670
|
2,954
|
|
Realised
loss
on
foreign
currency
|
(121)
|
(4)
|
|
Cash
and
cash
equivalents
at
end
of
period
|
921
|
3,292
|
Notes to the Financial Statements
1. Accounting Policies
The accounts comprise the
unaudited financial results of the company for the period to
30 September 2024.
The accounts are presented
in pounds sterling, as this is the functional currency of the
Company. All values are rounded to the nearest thousand pounds
(£’000) except where indicated.
The accounts have been
prepared in accordance with UK adopted International Accounting
Standards.
Where presentational
guidance set out in the Statement of Recommended Practice (SORP)
for Investment Trusts issued by the Association of Investment
Companies (AIC) in July 2022 is
consistent with the requirements of UK adopted International
Accounting Standards, the directors have sought to prepare the
financial statements on a basis compliant with the recommendations
of the SORP.
(a)
Income
recognition
Income includes dividends
from investments quoted ex-dividend on or before the date of the
Statement of Financial Position.
Dividends receivable from
equity shares are taken to the revenue return column of the
Statement of Comprehensive Income.
Special dividends are
treated as repayment of capital or as revenue depending on the
facts of each particular case. Bank interest and interest on
short-term deposits are accrued up to the period end date are taken
to the revenue return column of the Statement of Comprehensive
Income.
(b) Presentation
of Statement of Comprehensive Income
In order to better reflect
the activities of an investment trust company and in accordance
with Association of Investment Companies (AIC), supplementary
information which analyses the Statement of Comprehensive Income
between items of a revenue and capital nature has been presented
alongside the statement.
The
financial statements have been prepared on a going concern basis,
with material uncertainty, and under the historical cost convention
modified by the revaluation of investments held at fair value
through profit or loss. In considering this, the directors took
into account the Company’s investment objective, risk management
policies and capital management policies, the diversified portfolio
of readily realisable securities which can be used to meet
short-term funding commitments and the ability of the Company to
meet all of its liabilities and ongoing expenses.
The Board is currently
evaluating options for the future of the business in recognition
that it may be in the best interests of shareholders for the
Company not to continue in its present form. At this point in time,
there can be no certainty as to the outcome of this evaluation and
the Board will notify the market at the appropriate time. Whilst
there can be no certainty as to the outcome of this evaluation, and
therefore while there remains a material uncertainty, the Board has
prepared the financial statements on a going concern basis. The
financial statements do not contain the adjustments that would
result if the Company were unable to continue as a going
concern.
An analysis of retained
earnings broken down into revenue (distributable) items and capital
(distributable) items is given in Note 5.
Investment Management fees
and finance costs are charged 75 per cent. to capital and 25 per
cent to revenue (2023: 75 per cent to capital and 25 per cent to
revenue). All other operational costs (including administration
expenses to capital) are charged to revenue.
(c) Basis
of valuation of investments
Investments are recognised
and derecognised on a trade date where a purchase and sale of an
investment is under contract whose terms require delivery of the
investment within the timeframe established by the transaction
market concerned, and are initially measured at transaction cost,
being the consideration given.
All investments are
classified as held at fair value through profit or loss. All
investments are measured at fair value with changes in their fair
value recognised in the Statement of Comprehensive Income in the
period in which they arise. The fair value of listed investments is
based on their quoted bid price at the reporting date without any
deduction for estimated future selling costs.
Foreign exchange gains and
losses on fair value through profit and loss investments are
included within the changes in the fair value of the
investments.
For investments that are
not actively traded and/or where active stock exchange quoted bid
prices are not available, fair value is determined by reference to
a variety of valuation techniques. These techniques may draw,
without limitation, on one or more of: the latest arm’s length
traded prices for the instrument concerned; financial modelling
based on other observable market data; independent broker research;
or the published accounts relating to the issuer of the investment
concerned.
2.
Loss on investments
|
|
Six
months
to
30 September
2024
£’000
|
Six
months
to
30 September
2023
£’000
|
|
Net
gain
realised
on
sale
of
investments
|
565
|
1,333
|
|
Movement
in
unrealised
gains/(losses)
|
724
|
(6,993)
|
|
Gain/(loss)
on
investments
|
1,289
|
(5,660)
|
3.
Earnings
per Ordinary Share
The earnings per Ordinary
share figure is based on the net income for the six months of
£1,130,000 (six months to 30 September 2023: net loss £5,661,000)
and on 18,993,963 Ordinary shares (six months to 30 September 2023:
20,681,929), being the weighted average number of Ordinary shares
in issue during the period.
The earnings per Ordinary
share figure detailed above can be further analysed between revenue
and capital, as below.
|
|
Six
months
to
30 September
2024
£’000
|
Six
months
to
30 September
2023
£’000
|
|
Net
revenue
profit
|
158
|
205
|
|
Net
capital
profit/(loss)
|
972
|
(5,866)
|
|
Net
total
profit/(loss)
|
1,130
|
(5,661)
|
|
Weighted
average
number
of
Ordinary
shares
in
issue
during
the
period
|
18,993,963
|
20,681,929
|
|
Revenue
earnings
per
Ordinary
share
(p)
|
0.83
|
0.99
|
|
Capital
earnings/(losses)
per
Ordinary
share
(p)
|
5.12
|
(28.36)
|
|
Total
earnings/(losses)
per
Ordinary
share
(p)
|
5.95
|
(27.37)
|
4. Transaction
Costs
The following
transaction costs were incurred during the
period:
|
|
Six
months
to
30 September
2024
£’000
|
Six
months
to
30 September
2023
£’000
|
|
Purchases
|
1
|
2
|
|
Sales
|
1
|
2
|
|
Total
|
2
|
4
|
5. Retained
Earnings
The table below shows the
movement in the retained earnings analysed between revenue and
capital items.
|
|
Revenue
|
Capital
|
Total
|
|
£’000
|
£’000
|
£’000
|
|
At
31
March
2024
|
90
|
47,470
|
47,560
|
|
Movement
during
the
period:
|
|
|
|
|
Net
return
for
the
period
|
158
|
972
|
1,130
|
|
Shares
repurchased
|
–
|
(205)
|
(205)
|
|
At
30
September
2024
|
248
|
48,237
|
48,485
|
6.
Net asset value per ordinary share
The net asset value per
ordinary share is based on the net assets attributable to the
ordinary shareholders of
£51,243,000 (31 March
2024: £50,318,000) and on 18,975,780 (31 March 2024: 19,089,783)
ordinary shares, being the number of ordinary shares in issue at
the period end excluding treasury shares.
|
|
Six
months
to
|
Year
ended
|
|
30
September
2024
|
31
March
2024
|
|
£’000
|
£’000
|
|
Undiluted
|
|
|
|
Ordinary
shareholders’
funds
|
51,243
|
50,318
|
|
Number
of
ordinary
shares
in
issue
|
18,975,780
|
19,089,783
|
|
Net
asset
value
per
ordinary
share
(pence)
|
270.05p
|
263.59p
|
|
Diluted
|
|
|
|
Ordinary
shareholders’
funds
|
56,245
|
55,254
|
|
Number
of
ordinary
shares
in
issue
|
20,873,358
|
20,998,761
|
|
Net
asset
value
per
ordinary
share
(pence)
|
269.46p
|
263.13p
|
The diluted net asset
value per ordinary share assumes that all outstanding dilutive
Subscription shares, being one for ten ordinary shares, will be
converted to ordinary shares at the end of the financial
year.
7. Fair valuation
of investments
The financial assets
measured at fair value in the Statement of Financial Position are
grouped into the fair value hierarchy as follows:
|
|
30
September
2024
|
31
March
2024
|
|
|
Level
1
£’000
|
Level
2
£’000
|
Level
3
£’000
|
Total
£’000
|
Level
1
£’000
|
Level
2
£’000
|
Level
3
£’000
|
Total
£’000
|
|
Equity
Investments
|
50,330
|
–
|
–
|
50,330
|
49,686
|
–
|
–
|
49,686
|
|
|
50,330
|
–
|
–
|
50,330
|
49,686
|
–
|
–
|
49,686
|
Level 1 reflects financial
instruments quoted in an active market.
Level 2 reflects financial
instruments whose fair value is evidenced by comparison with other
observable current market transactions in the same instrument or
based on a valuation technique whose variables includes only data
from observable markets.
Level 3 reflects financial
instruments whose fair value is determined in whole or in part
using a valuation technique based on assumptions that are not
supported by prices from observable market transactions in the
instrument and not based on available observable market
data.
8. Principal risk
profile
The principal risks which
the Company faces include exposure to:
(i) market price risk,
including currency risk, interest rate risk and other price
risk;
(ii) credit and
counterparty risk; and
(iii) liquidity
risk.
Market price risk - This
is the risk that the fair value or future cash flows of a financial
instrument held by the Company may fluctuate because of changes in
market prices. This market risk comprises three elements - currency
risk, interest rate risk and other price risk.
Credit and counterparty
risk - This is the exposure to loss from the failure of a
counterparty to deliver securities or cash for acquisitions or to
repay deposits.
Liquidity risk - This is
the risk that the Company will encounter difficulty in meeting
obligations associated with financial
liabilities.
Further details of the
Company's management of these risks can be found in the company's
Annual report and accounts for the year ended 31 March
2024.
There have been no changes
to the management of or the exposure to these risks since that
date.
9. Related
Parties
Jupiter Unit Trust
Managers Limited (‘JUTM’), the Alternative Investment Fund Manager,
is a company within the same group as Jupiter Asset Management
Limited (‘JAM’), the Investment Adviser. JUTM receives an
investment management fee as set out below.
JUTM is contracted to
provide investment management services to the company subject to
termination by not less than twelve months’ notice by either party.
The basis for calculation of the management fee charged to the
company to 0.70% of net assets up to £150 million, reducing to
0.60% for net assets over £150 million and up to £250 million, and
reducing further to 0.50% for net assets in excess of £250 after
deduction of the value of any Jupiter managed
investments.
The management fee payable
to JUTM for the period 1 April 2024 to 30 September 2024 was
£179,694 (year to 31 March 2024: £342,792) with £32,512 (31 March
2024: £58,542) outstanding at period end.
The Company has invested
from time to time in funds managed by Jupiter Investment Management
PLC or its subsidiaries. There was no such investment during
current period (31 March 2024: Nil).
No investment management
fee is payable by the Company to Jupiter Asset Management Limited
in respect of the Company’s holdings in investment trusts,
open-ended funds and investment companies in respect of which
Jupiter Investment Management Group Limited, or any subsidiary
undertaking of Jupiter Investment Management Group Limited,
receives fees as investment manager or investment
adviser.
Availability of
Half Yearly Financial Report
The Half Yearly Financial
Report will shortly be available on company's website
www.jupiteram.com/JGC.
A copy of the Half Yearly
Financial Report will also be submitted to the National
Storage Mechanism and will soon be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
By Order of the
Board
Jupiter Asset Management
Limited
Company
Secretary
19 December
2024
