Temple Bar Investment Trust Plc - Half-year Report
PR Newswire
London, August 8
Chairman's Statement
During the six months to 30 June 2019 Temple Bar generated a total return on net assets of 11.9%, slightly underperforming the benchmark FTSE All-Share Index total return of 13.0%, as the Value investment style that your managers pursue remained out of fashion.
Dividend
A first quarterly dividend of 11.0p per share was paid on 28 June 2019 and the directors have declared a second interim dividend, also of 11.0p per share, again an increase of 25.7% on the equivalent dividend last year. This will be paid on 30 September 2019 to those shareholders on the register of members as at 13 September 2019. The ex-dividend date for this payment is 12 September 2018. It is important to reiterate the comment made in the announcement of the first interim payment that the scale of the increase relative to the prior year should not be taken as indicative of the likely increase in the dividend for the year as a whole. The large increase in the interim payments reflects a rebalancing exercise between the size of the three interim payments and the final dividend. In the absence of any unforeseen circumstances the Board is hoping to recommend an increase in the total dividend for the year of approximately 10%.
Board
The process of Board refreshment has continued and as from 1st October Sonita Alleyne and Shefaly Yogendra will be joining the Board. Sonita has extensive experience in both public and private sectors, particularly in media and Shefaly brings a wealth of expertise in digital and tech leadership, risk and decision making. I am sure both these new Directors will bring interesting new perspectives to our discussions. As previously announced, Sir Richard Jewson will not be offering himself for re-election at the next AGM.
Investment Parameters
As highlighted in the Annual Report, we have been having discussions, both internally and with shareholders, re any modifications to our investment parameters. These discussions are ongoing. In the meantime, I would like to thank the many shareholders and other interested parties who have responded thus far.
Outlook
Future movement of UK share prices remain linked to the outcome of the Brexit discussions and global instability. We have no special insight into their likely resolution. However, over many years Temple Bar has demonstrated resilience in even the most difficult of markets. We will endeavour to continue to do so.
Arthur Copple
Chairman
8 August 2019
TWENTY LARGEST HOLDINGS AS AT 30 JUNE 2019
| Company | Industry | Place of Primary Listing | Valuation £'000 | % of Portfolio |
| GlaxoSmithKline | Healthcare | UK | 66,103 | 6.84% |
| Royal Dutch Shell | Oil & Gas | UK | 64,914 | 6.72% |
| Capita | Industrials | UK | 57,661 | 5.97% |
| Travis Perkins | Industrials | UK | 56,494 | 5.85% |
| BP | Oil & Gas | UK | 55,207 | 5.71% |
| Grafton Group | Industrials | Ireland | 43,204 | 4.47% |
| Lloyds Banking Group | Financials | UK | 40,474 | 4.19% |
| SIG | Industrials | UK | 37,240 | 3.85% |
| Tesco | Consumer Services | UK | 37,183 | 3.85% |
| Royal Bank of Scotland | Financials | UK | 36,238 | 3.75% |
| Top Ten Investments | 494,718 | 51.20% | ||
| Barclays | Financials | UK | 34,380 | 3.56% |
| HSBC Holdings | Financials | UK | 32,959 | 3.41% |
| Forterra | Industrials | UK | 24,652 | 2.55% |
| Marks & Spencer | Consumer Services | UK | 21,416 | 2.22% |
| Citigroup | Financials | USA | 21,343 | 2.21% |
| easyJet | Consumer Services | UK | 19,052 | 1.97% |
| Land Securities Group REIT | Financials | UK | 18,072 | 1.87% |
| Kingfisher | Consumer Services | UK | 18,050 | 1.87% |
| TP ICAP | Financials | UK | 17,753 | 1.84% |
| Next | Consumer Services | UK | 16,617 | 1.72% |
| Top Twenty Investments | 719,012 | 74.42% | ||
STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2019 (unaudited)
| 30 June 2019 (unaudited) | 30 June 2018 (unaudited) | 31 December 2018 (audited) | ||||||||
Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | ||
| Investment income | 22,387 | - | 22,387 | 20,768 | - | 20,768 | 37,258 | - | 37,258 | |
| Other operating income | 12 | - | 12 | 6 | - | 6 | 26 | - | 26 | |
Total Income | 22,399 | - | 22,399 | 20,774 | - | 20,774 | 37,284 | - | 37,284 | |
| Gains/(losses) on investments | ||||||||||
| Gains/(losses) on investments held at fair value through profit or loss assets | - | 79,446 | 79,446 | - | 13,321 | 13,321 | - | (131,528) | (131,528) | |
| 22,399 | 79,446 | 101,845 | 20,774 | 13,321 | 34,095 | 37,284 | (131,528) | (94,244) | ||
| Expenses | ||||||||||
| Management fees | (755) | (1,089) | (1,844) | (712) | (1,068) | (1,780) | (1,503) | (2,168) | (3,671) | |
| Other expenses including dealing costs | (285) | (260) | (545) | (360) | (901) | (1,261) | (559) | (1,427) | (1,986) | |
| Profit before finance costs and tax | 21,359 | 78,097 | 99,456 | 19,702 | 11,352 | 31,054 | 35,222 | (135,123) | (99,901) | |
| Finance costs | (983) | (1,488) | (2,471) | (967) | (1,461) | (2,428) | (1,962) | (2,968) | (4,930) | |
| Profit/(loss) before tax | 20,375 | 76,609 | 96,985 | 18,735 | 9,891 | 28,626 | (33,260) | (138,091) | (104,831) | |
| Tax | (96) | - | (96) | (57) | - | (57) | (161) | - | (161) | |
| Profit/(loss) for the period | 20,280 | 76,609 | 96,889 | 18,678 | 9,891 | 28,569 | 33,099 | (138,091) | (104,992) | |
Earnings per share (basic and diluted) | 30.33p | 114.56p | 144.89p | 27.93p | 14.79p | 42.72p | 49.50p | (206.50)p | (157.00)p | |
A first interim dividend of 11.0 pence per share in respect of the quarter ended 31 March 2019 was paid on 28 June 2019.
A second interim dividend of 11.0 pence per share in respect of the quarter ended 30 June 2019 was declared on 8 August 2019 and is payable on 30 September 2019.
The total column of this statement represents the Statement of Comprehensive Income, prepared in accordance with IFRS. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies.
All items in the above statement derive from continuing operations.
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2019 (unaudited)
| Ordinary share | Share premium | Capital | Retained | Total | |
| capital | account | reserves | earnings | equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
BALANCE AT 1 JANUARY 2019 | 16,719 | 96,040 | 652,076 | 37,342 | 802,182 |
| Profit for the period | - | - | 76,609 | 20,280 | 96,889 |
| Unclaimed dividends | - | - | - | 9 | 9 |
| Dividends paid to equity shareholders | - | - | - | (21,045) | (21,045) |
| BALANCE AT 30 JUNE 2019 | 16,719 | 96,040 | 728,685 | 36,591 | 878,035 |
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2018 (unaudited)
| Ordinary share | Share premium | Capital | Retained | Total | |
| capital | account | reserves | earnings | equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
BALANCE AT 1 JANUARY 2018 | 16,719 | 96,040 | 790,167 | 33,440 | 936,366 |
| Profit for the period | - | - | 9,891 | 18,678 | 28,569 |
| Unclaimed dividends | - | - | - | 51 | 51 |
| Dividends paid to equity shareholders | - | - | - | (17,541) | (17,541) |
| BALANCE AT 30 JUNE 2018 | 16,719 | 96,040 | 800,058 | 34,628 | 947,445 |
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 (unaudited)
| 30 June 2019 (unaudited) £'000 | 30 June 2018 (unaudited) £'000 | 31 December 2018 (audited) £'000 | |
| NON-CURRENT ASSETS | |||
| Investments held at fair value through profit or loss | 966,271 | 1,059,300 | 905,125 |
| CURRENT ASSETS | |||
| Receivables | 5,584 | 4,721 | 3,231 |
| Cash and cash equivalents | 21,204 | 9,834 | 9,005 |
| 26,788 | 14,555 | 12,236 | |
| TOTAL ASSETS | 993,059 | 1,073,855 | 917,361 |
| CURRENT LIABILITIES | |||
| Payables | (1,014) | (12,508) | (1,208) |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 992,045 | 1,061,347 | 916,153 |
| NON-CURRENT LIABILITIES | |||
| Interest bearing borrowings | (114,010) | (113,902) | (113,971) |
| NET ASSETS | 878,035 | 947,445 | 802,182 |
| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS | |||
| Ordinary share capital | 16,719 | 16,719 | 16,719 |
| Share premium | 96,040 | 96,040 | 96,040 |
| Capital reserves | 728,685 | 800,058 | 652,076 |
| Retained earnings | 36,591 | 34,628 | 37,347 |
| TOTAL EQUITY | 878,035 | 947,445 | 802,182 |
| NET ASSET VALUE PER SHARE | 1,312.99p | 1,416.79p | 1,199.56p |
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2019 (unaudited)
| 30 June 2019 | 30 June 2018 | 31 December 2018 | |||||
| (unaudited) | (unaudited) | (audited) | |||||
| £000 | £000 | £000 | |||||
| Cash flows from operating activities | |||||||
| Profit before tax | 96,985 | 28,626 | (104,831) | ||||
| Adjustments for: | |||||||
| Gains on investments | (79,446) | (13,321) | 131,528 | ||||
| Finance costs | 2,471 | 2,428 | 4,930 | ||||
| Purchases of investments 1 | (56,898) | (292,616) | (513,298) | ||||
| Sales of investments 1 | 75,046 | 293,926 | 512,712 | ||||
| Dividend income | (22,224) | (20,502) | (36,728) | ||||
| Interest income | (175) | (272) | (545) | ||||
| Dividends received | 19,591 | 18,567 | 36,115 | ||||
| Interest received | 359 | 836 | 1,365 | ||||
| Decrease/(increase) in receivables | - | (6) | 25 | ||||
| Increase/(decrease) in payables | 54 | (1) | (199) | ||||
| Overseas withholding tax suffered | (96) | (57) | (161) | ||||
| (61,318) | (11,018) | 135,744 | |||||
| Net cash flows from operating activities | 35,667 | 17,608 | 30,913 | ||||
| Cash flows from financing activities | |||||||
| Unclaimed dividends | 9 | 51 | 51 | ||||
| Interest paid on borrowings | (2,432) | (2,445) | (4,877) | ||||
| Equity dividends paid | (21,045) | (17,541) | (29,243) | ||||
| Net cash used in financing activities | (23,468) | (19,935) | (34,069) | ||||
| Net (decrease)/increase in cash and cash equivalents | 12,199 | (2,327) | (3,156) | ||||
| Cash and cash equivalents at the start of the period | 9,005 | 12,161 | 12,161 | ||||
| Cash and cash equivalents at the end of the period | 21,204 | 9,834 | 9,005 | ||||
1. Purchases and sales of investments are considered to be operating activities of the Company, given its purpose, rather than investing activities.
RESPONSIBILITY STATEMENT
The Directors confirm to the best of their knowledge that:
- the condensed set of financial statements contained within the half-year report has been prepared in accordance with the Accounting Standards Board's Statement 'Half-Yearly Financial Reports';
- the half yearly financial report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
- in accordance with Disclosure and Transparency Rule 4.2.8R there have been no related parties transactions during the six months to 30 June 2019 and therefore nothing to report on any material effect by such a transaction on the financial position or performance of the Company during that period.
The half-yearly financial report was approved by the Board on 8 August 2019 and the above responsibility statement was signed on its behalf by:
Arthur Copple
Chairman
Notes
1. Comparative figures
The financial information contained in this half-year report does not constitute statutory accounts as defined in section 434-436 of the Companies Act 2006. The financial information for the six months ended 30 June 2019 and 30 June 2018 has not been audited.
The information for the year ended 31 December 2018 does not constitute statutory accounts, but has been extracted from the latest published audited accounts, which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under section 498(2) or (3) of the Companies Act 2006.
2. Publication
This half-year report is being sent to shareholders and copies will be made available to the public at the Company's registered office and on its website.
For further information please contact:
Alastair Mundy
Investec Fund Managers Limited 020 7597 2000
