Rights and Issues Investment Trust PLC: Half Yearly Report For the six months ended 30th June 2020
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Rights and Issues Investment Trust PLC (RIII) Rights and Issues Investment Trust PLC: Half Yearly Report For the six months ended 30th June 2020 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/ 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 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 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
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 £810,585 (calculated as at 29th July 2020) (2019: £825,220) is payable on 28th September 2020 to shareholders on the register as at 28th August 2020 (ex-dividend 27th August 2020).
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
STATEMENT OF CHANGES IN EQUITY for the six months ended 30th June 2020
STATEMENT OF CASH FLOWS for the six months ended 30th June 2020
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.
30th June 2020 £'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 IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note 1 Investments, as set out in the Company's Annual Report and Financial Statements for the year ended 31st December 2019. The fair value hierarchy has the following levels: Level 1 - Unadjusted prices quoted in active markets for identical assets and liabilities. Level 2 - Having inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices). Level 3 - Having inputs for the asset or liability that are not based on observable data.
There were no transfers between Level 1 and Level 2 during the period. A reconciliation of fair value measurements in Level 3 is set out in the following table.
The Level 3 investment relates to the Company's subsidiary, Discretionary Unit Fund Managers Limited, which has been valued based on the most recent estimated NAV.
Under IFRS, the Directors have been identified as related parties. Their fees and interests for the year ended 31st December 2019 have been disclosed in the Directors' Annual Remuneration Report within the 2019 Annual Report and Financial Statements. During the period the Company had the following transactions with Discretionary Unit Fund Managers Limited, its subsidiary undertaking: 30th June 30th June 31st December 2020 2019 2019 £'000 £'000 £'000 Dividends received - - - - - - Amounts owed by subsidiary undertaking 78 78 78
The Company's assets comprise mainly realisable equity securities and cash and the value of its assets is greater than its liabilities. Additionally, after reviewing the Company's budget including the current financial resources and projected expenses for the next twelve months and its medium-term plans, the Directors believe that the Company's resources are adequate for continuing in business for the foreseeable future. Based on the above, the Board is satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended 31st December 2019. In the view of the Board, the outbreak of an infectious respiratory illness caused by coronavirus known as COVID-19 has fundamentally altered the nature of the risks reported in the Annual Report and Financial Statements. COVID-19 has resulted in travel restrictions, closed international borders, disrupted supply chains and adversely affected consumer demand. The impact of COVID-19 has severely affected the economies of many nations across the entire global economy and capital markets and could continue with extents that cannot necessarily be foreseen. DIRECTORS' STATEMENT OF RESPONSIBILITY FOR THE HALF YEARLY FINANCIAL REPORT
The Directors are responsible for preparing the Half Yearly financial report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:
This report was approved on 3rd August 2020. Dr D. M. BRAMWELL PORTFOLIO STATEMENT Details of the twenty largest investments as at 30th June 2020 are given below by market value:
Unless otherwise specified, the actual holdings are, in each case, of ordinary shares or stock units and of the nominal value for which listing has been granted. INDEPENDENT REVIEW REPORT TO RIGHTS AND ISSUES INVESTMENT TRUST PLC INTRODUCTION We have been engaged by the Company to review the financial statements in the Half Yearly Financial Report for the six months ended 30th June 2020 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and the related explanatory notes 1 to 6. We have read the other information contained in the Half Yearly Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. The report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed. DIRECTORS' RESPONSIBILITIES The Half Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. As disclosed in note 1, the Annual Financial Statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The financial statements included in this Half Yearly Financial Report have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union. OUR RESPONSIBILITY Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half Yearly Financial Report based on our review. SCOPE OF REVIEW We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than in an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the financial statements in the Half Yearly Financial Report for the six months ended 30th June 2020 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. JEREMY STAINES For and on behalf of Begbies 9 Bonhill Street Chartered Accountants London EC2A 4DJ 3rd August 2020
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| ISIN: | GB0007392078 |
| Category Code: | IR |
| TIDM: | RIII |
| OAM Categories: | 1.2. Half yearly financial reports and audit reports/limited reviews |
| Sequence No.: | 79531 |
| EQS News ID: | 1108567 |
| End of Announcement | EQS News Service |
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