DJ Rights and Issues Investment Trust PLC: Half Yearly Report For the six months ended 30th June 2020
Rights and Issues Investment Trust PLC (RIII)
Rights and Issues Investment Trust PLC: Half Yearly Report For the six
months ended 30th June 2020
03-Aug-2020 / 16:33 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
RIGHTS AND ISSUES INVESTMENT TRUST PLC
For the six months ended 30th June 2020
A copy of the Company's Half Yearly Financial Report for the six months
ended 30th June 2020 will shortly be available to view and download from
www.maitlandgroup.com/investments-trusts/rights-and-issues-investment-trust-
plc/. Neither the contents of this website nor the contents of any website
accessible from hyperlinks on this website (or any other website) is
incorporated into or forms part of this announcement.
Printed copies of the Report will be sent to shareholders shortly.
Additional copies may be obtained from the Corporate Secretary - Maitland
Administration services Limited, Hamilton Centre, Rodney Way, Chelmsford,
Essex CM1 3BY.
INTERIM DIVIDEND
An interim dividend of 10.75p per share has been approved by the Board and
is payable on 28th September 2020 to shareholders on the register as at 28th
August 2020 (ex-dividend 27th August 2020).
The following text is copied from the Half Yearly Financial Report.
HALF YEARLY FINANCIAL REPORT
for the six months ended 30th June 2020
DIRECTORS AND ADVISERS
DIRECTORS
Dr D. M. BRAMWELL (Chairman)
D. M. BEST
Dr A. J. HOSTY
S. J. B. KNOTT
J. B. ROPER
REGISTERED OFFICE
Hamilton Centre
Rodney Way
Chelmsford CM1 3BY
WEBSITE
www.maitlandgroup.com/investment-trusts/ [1]
rights-and-issues-investment-trust-plc/
ADMINISTRATOR/SECRETARY
MAITLAND ADMINISTRATION SERVICES LTD
Hamilton Centre
Rodney Way
Chelmsford CM1 3BY
SOLICITORS
EVERSHEDS SUTHERLAND
One Wood Street
London EC2V 7WS
AUDITOR
BEGBIES
9 Bonhill Street
London EC2A 4DJ
REGISTRARS
LINK MARKET SERVICES LTD
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
BROKERS
SHORE CAPITAL LTD
Cassini House
57-58 St James's Street
London SW1A 1LD
BANKERS/CUSTODIAN
NORTHERN TRUST
50 Bank Street
Canary Wharf
London E14 5NT
REGISTRATION DETAILS
Company Registration Number: 00736898 (Registered in England)
SEDOL number: 0739207
ISIN number: GB0007392078
London Stock Exchange (EPIC) Code: RIII
Global Intermediary Identification Number (GIIN): I2ZVNY.99999.SL.826
Legal Entity Identifier (LEI): 2138002AWAM93Z6BP574
HALF YEARLY FINANCIAL REPORT
for the six months ended 30th June 2020
CHAIRMAN'S STATEMENT
I was optimistic that after the General Election in late 2019 the resolution
of Brexit would be a reasonably well managed process throughout the 12 month
transition period. However, the outcome of the trade negotiations with the
EU is still unclear and is adversely affecting market sentiment. The Board
closely monitors related developments to inform decision making on behalf of
the Company.
The COVID19 pandemic, which arrived in the UK and mainland Europe in early
2020, has had an unprecedented and immediate negative impact on markets,
particularly from March to May. It is highly likely that the pandemic will
undermine corporate performance for some time to come, nevertheless we must
battle on.
The FTSE All-Share Index fell by 18.7% during the first six months and,
disappointingly, the Company's portfolio had a mixed six months with net
asset value per share reducing by 20.9% to 1800.3p.
No shares were purchased under the Company's established share buy-back
programme in the half year. The issued share capital therefore remained
unchanged as at 30th June 2020 at 7,540,321, which represents a reduction of
16.4% since December 2016. The share buy-back programme has been paused for
the foreseeable future.
The interim dividend is being maintained at 10.75p (2019: 10.75p),
reflecting the Directors' awareness of the importance of dividend income to
the Company's investors and its robust underlying financial position. The
directors are closely monitoring the implications of the continuing market
volatility and global response to the pandemic for the Company's net asset
position and future income streams, and will make changes to the Company's
future dividend payments when deemed appropriate to do so.
Environmental, Social and Governance risks continue to be recognised as
significant matters of global concern and the Board is committed to ensuring
that the Company, through the Investment Director, appropriately manages and
mitigates these risks through the investment strategy.
I am pleased to confirm that the composition of your Board has remained
stable throughout the half year, and myself and my board colleagues look
forward to overseeing implementation of the Company's investment strategy
and improving returns for shareholders in the future.
Finally, in the medium term, the economic outlook is flat at best and the
corporate environment is certainly tougher. However, we will continue to
focus on delivering our overall strategy.
Dr D. M. BRAMWELL
Chairman
3rd August 2020
Risks and uncertainties
Cautionary statement
This Half Yearly Report contains forward-looking statements that involve
risk and uncertainty. These have been made by the Directors in good faith
based on the information available to them at the time of their approval of
this Report.
The Board is mindful of the uncertainty surrounding the potential duration
of the COVID-19 pandemic and its impact on the global economy, the Company's
assets and the potential for the level of revenue derived from the portfolio
to reduce from previous years. The Directors, having considered the nature
and liquidity of the portfolio, the Company's investment objectives and
projected income and expenditure, are satisfied that the Company has
adequate resources to continue in operational existence for the foreseeable
future and is financially sound.
The Board believes that the Company and its key third party service
providers have in place appropriate business continuity plans and will be
able to maintain service levels through the COVID-19 pandemic.
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30th June 2020
Notes Six months ended 30th Six months
June 2020 ended 30th
June 2019
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment 2 315 - 315 1,911 - 1,911
income
Other 2 - - - 8 - 8
operating
income
Total income 315 - 315 1,919 - 1,919
Gains/(losses) - (34,137) (34,137) - 5,518 5,518
through fair
value
Gains on - - - - 52 52
subsidiary
holding
315 (34,137) (33,822) 1,919 5,570 7,489
Expenses
Investment - - - - - -
management fee
Other expenses 367 - 367 400 16 416
367 - 367 400 16 416
Profit/(loss) (52) (34,137) (34,189) 1,519 5,554 7,073
before tax
Tax- - - - - -
Profit/(loss) (52) (34,137) (34,189) 1,519 5,554 7,073
for the period
Earnings per
share
Return per (0.7)p (452.7)p (453.4)p 19.1p 69.8p 88.9p
Ordinary
Share
Return per share is calculated using the weighted average number of Ordinary
shares in issue during the period ended 30th June 2020 of 7,540,321 (2019:
7,958,152).
The total column of this statement represents the Statement of Comprehensive
Income, prepared in accordance with International Financial Reporting
Standards as adopted by the EU. The supplementary revenue return and capital
return columns are both prepared under guidance published by the Association
of Investment Companies. All items in the above statement are those of the
single entity and derive from continuing operations.
The profit for the period disclosed above represents the Company's total
Comprehensive Income. The Company does not have any other Comprehensive
Income.
An interim dividend of 10.75p (2019: 10.75p) per share and amounting to
GBP810,585 (calculated as at 29th July 2020) (2019: GBP825,220) is payable on
28th September 2020 to shareholders on the register as at 28th August 2020
(ex-dividend 27th August 2020).
Notes Year ended 31st December 2019
Revenue Capital Total
GBP'000 GBP'000 GBP'000
Investment 2 3,150 - 3,150
income
Other operating 2 9 - 9
income
Total income 3,159 - 3,159
Gains/(losses) - 11,188 11,188
through fair
value
Gains on - 52 52
subsidiary
holding
3,159 11,240 14,399
Expenses
Investment - - -
management fee
Other expenses 803 68 871
803 68 871
Profit/(loss) 2,356 11,172 13,528
before tax
Tax - - -
Profit/(loss) 2,356 11,172 13,528
for the period
Earnings per
share
(MORE TO FOLLOW) Dow Jones Newswires
August 03, 2020 11:34 ET (15:34 GMT)
Return per 30.2p 143.3p 173.5p
Ordinary
Share
Return per share is calculated using the weighted average number of Ordinary
shares in issue during the year ended 31st December 2019 of 7,797,775.
The financial information contained in this Half Yearly Financial Report
does not constitute statutory accounts as defined in Sections 434 - 436 of
the Companies Act 2006. The information for the six months to 30th June 2020
and 30th June 2019 has not been audited.
The information for the year ended 31st December 2019 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 (4) of the
Companies Act 2006.
The auditors have reviewed the financial information for the six months
ended 30th June 2020 pursuant to the Auditing Practices Board guidance on
Review of Interim Financial Information and their report is on page 12.
BALANCE SHEET
as at 30th June 2020
Non-current assets 30th June 30th June 31st December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Investments - fair value 123,519 163,207 155,701
through profit or loss
123,519 163,207 155,701
Current assets
Trade and other receivables 33 1,095 534
Amounts due from Group 78 78 78
undertakings
Cash and cash equivalents 12,158 7,642 15,322
12,269 8,815 15,934
Total assets 135,788 172,022 171,635
Current liabilities
Trade and other payables 43 154 80
43 154 80
Total assets less current 135,745 171,868 171,555
liabilities
Net assets 135,745 171,868 171,555
Equity
Called up share capital 1,885 1,963 1,885
Capital redemption reserve 370 292 370
Retained reserves:
Capital reserve 63,842 59,481 64,742
Revaluation reserve 68,347 107,170 101,584
Revenue reserve 1,301 2,962 2,974
Total equity 135,745 171,868 171,555
Net asset value per share
Ordinary shares 1,800.3p 2,188.7p 2275.2p
STATEMENT OF CHANGES IN EQUITY
for the six months ended 30th June 2020
For the Capital Capital Revenue
six months redempti reserve reserve
ended 30th on
June 2019 reserve
Share Revaluation
GBP'000 reserve GBP'000
Balance at GBP'000
capital Total
GBP'000
GBP'000 GBP'000
31st 2,002 253 61,984 102,217 3,119 169,57
December 5
2018
Profit for - - 601 4,953 1,519 7,073
the period
Total
recognised
income
and
expense
Ordinary
shares
bought
back
and
cancelled
2,002 253 62,585 107,170 4,638 176,64
8
(39) 39 (3,104) - -
(3,104
)
Dividends - - - - (1,676) (1,676
(Note 3) )
Balance at
30th June
2019
1,963 292 59,481 107,170 2,962 171,86
8
For the Capital
year ended Redempti
31st on
December
2019 Share Capital Revaluation Revenue
reserve reserve reserve
reserve
Balance at capital Total
GBP'000 GBP'000 GBP'000
GBP'000
GBP'000 GBP'000
31st 2,002 253 61,984 102,217 3,119 169,57
December 5
2018
Changes in
equity for
2019
Profit for - - 11,805 (633) 2,356 13,528
the year
Total
recognised
income
and
expense
Ordinary
shares
bought
back
and
cancelled
2,002 253 73,789 101,584 5,475 183,10
3
(117) 117 (9,047) - -
(9,047
)
Dividends - - - - (2,501) (2,501
(Note 3) )
Balance at
31st
December
2019
1,885 370 64,742 101,584 2,974 171,55
5
For the Capital
six months redempt
ended 30th ion
June 2020 reserve
Share Capital Revaluation Revenue
reserve reserve reserve
Balance at GBP'000
capital Total
GBP'000 GBP'000 GBP'000
GBP'000 GBP'000
31st 1,885 370 64,742 101,584 2,974 171,555
December
2019
Loss for - - (900) (33,237) (52) (34,189
the period )
Total
recognised
income
and
expense
Ordinary
shares
bought
back
and
cancelled
1,885 370 63,842 68,347 2,922 137,366
- - - - - -
Dividends - - - - (1,621) (1,621)
(Note 3)
Balance at
30th June
2020
1,885 370 63,842 68,347 1,301 135,745
STATEMENT OF CASH FLOWS
for the six months ended 30th June 2020
Cashflows from operating 30th June 30th June 31st December
activities
2020 2019 2019
GBP'000 GBP'000 GBP'000
Profit/(loss) before tax (34,189) 7,073 13,528
Adjustments for:
(Gains)/losses on investments 34,137 (5,518) (11,188)
(Gains) on revaluation of - (52) (52)
subsidiary
Purchases of investments (6,697) (2,815) (8,671)
Proceeds on disposal of 4,742 825 19,857
investments
Operating cash flows before (2,007) (487) 13,474
movements in working capital
Decrease/(increase) in 501 (474) 87
receivables
Decrease in payables (37) (35) (1)
Net cash from operating (1,543) (996) 13,560
activities
Cashflows from financing
activities
Ordinary shares bought back - (2,996) (9,047)
and cancelled
Dividends paid (1,621) (1,676) (2,501)
Net cash used in financing (1,621) (4,672) (11,548)
activities
Net (decrease)/increase in (3,164) (5,668) 2,012
cash and cash equivalents
Cash and cash equivalents at 15,322 13,310 13,310
beginning of period
Cash and cash equivalents at 12,158 7,642 15,322
end of period
NOTES TO THE HALF YEARLY FINANCIAL REPORT
for the six months ended 30th June 2020
1. Accounting Standards
The condensed interim financial report has been prepared in accordance with
International Financial Reporting Standards (IFRSs), including IAS 34
"Interim financial reporting" as adopted by the European Union. The same
accounting policies and methods of computation are followed in the interim
financial report as those used in the Company's latest published annual
financial statements.
2. Income 30th June 30th June 31st December
Total income comprises: 2020 2019 2019
GBP'000 GBP'000 GBP'000
Dividends 315 1,911 3,150
Interest - 8 9
Total income 315 1,919 3,159
3. Dividends
30th June 30th June 31st December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Amounts recognised as
distributions to equity
holders in the year:
Interim dividend for the year - - 825
ended 31st December 2019 of
10.75p per share
Final dividend for the year 1,621 1,676 1,676
ended 31st December 2019
of 21.5p per share (year ended
31st December 2018: 21.00p)
1,621 1,676 2,501
30th June
2020
GBP'000
Income
Proposed interim dividend of 10.75p per share 811___
811
This proposed interim dividend was approved by the Board on 3rd August 2020,
has been calculated based on shares in issue at 29th July 2020, and has not
been included as a liability at 30th
4. Valuation of financial instruments
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