British & American Investment Trust Plc - Half-year Report
Half-year Report
BRITISH & AMERICAN INVESTMENT TRUST PLC
FINANCIAL HIGHLIGHTS
For the six months ended 30 June 2024
Unaudited Unaudited Audited
6 monthsto 6 monthsto Year ended
30 June 30 June 31 December
2024 2023 2023
£’000 £’000 £’000
Revenue
Return before tax 412 740 797
_________ _________ _________
Earnings per £1 ordinary shares – basic (note 1.00p 2.29p 1.86p
5)
_________ _________ _________
Earnings per £1 ordinary shares – diluted 1.00p 2.14p 1.86p
(note 5)*
_________ _________ _________
Capital
Total equity 9,697 8,749 4,512
_________ _________ _________
Revenue reserve (note 9) 646 766 221
_________ _________ _________
Capital reserve (note 9) (25,949) (27,017) (30,709)
_________ _________ _________
Net assets per ordinary share (note 6)
- Basic (deducting preference shares at fully £0.28 £0.25 £0.13
diluted net asset value)**
_________ _________ _________
- Diluted £0.28 £0.25 £0.13
_________ _________ _________
Diluted net assets per ordinary share at 24 £0.27
September 2024
_________
Dividends***
Dividends per ordinary share (note 4) 1.75p 1.75p 1.75p
_________ _________ _________
Dividends per preference share (note 4) 1.75p 1.75p 1.75p
_________ _________ _________
*Calculated in accordance with International Accounting Standard 33 ‘Earnings per Share’.
**Basic net assets per share are calculated using a value of fully diluted net asset value for the preference shares.
***Dividends declared for the period. Dividends shown in the accounts are, by contrast, dividends paidor approved
in the period.
Copies of this report will be posted to shareholders and be available for download at the company’s website: www.baitgroup.co.uk. INVESTMENT PORTFOLIO As at30 June 2024 Company Nature of Business Valuation Percentage of portfolio £’000 % Geron Corporation (USA)* Biomedical 5,494 33.01 Dunedin Income Growth Investment Trust 1,078 6.48 Lineage Cell Therapeutics Biotechnology 449 2.70 (USA)** abrdn Diversified Income & Investment Trust 400 2.40 Growth Serina Therapeutics (USA) Biotechnology 22 0.13 ADVFN Other financial 16 0.10 Vodafone Telecommunications 14 0.08 Audioboom Media 13 0.08 IQE Semiconductors 6 0.04 Relief Therapeutics Healthcare 4 0.02 ________ ________ 10 Largest investments 7,496 45.04 (excluding subsidiaries) Investment in subsidiaries 8,660 54.89 Other investments (number 12 0.07 of holdings: 8) ________ ________ Total investments 16,168 100.00 ________ ________
* Total value of investment including held by subsidiary companies - £11,245,000
** Total value of investment including held by subsidiary companies - £1,781,000
Unaudited Interim Report
As at
Registered number: 433137
Directors Registered office David G Seligman (Chairman) Wessex House Jonathan C Woolf (Managing Director)1 Chesham Street Julia Le Blan (Non-executive and Chair of the Audit London SW1X 8ND Committee)Alex Tamlyn (Non-executive) Telephone: 020 7201 3100 Website: www.baitgroup.co.uk
Chairman’s Statement
I report our results for the six months to
Revenue
The
profit on the revenue account before tax amounted to £0.4 million (
Gross revenues totalled £0.7 million (
A gain of £4.9 million (
Revenue earnings per ordinary share were
Net Assets and performance
Company net assets were £9.7 million (£4.5 million, at
This substantial out-performance in net assets over the period was the result of an increase of 101 percent in the value of our major US investment,
Our strong six-month performance noted above extends the cumulative outperformance of our portfolio in total return over the last two years to over 50 percent.
In my last statement in April commenting on equity markets in 2023 and the first 4 months of 2024, I noted the strength and resilience of these markets over the period as investors saw sustained reductions in inflation leading to interest rate cuts from the US Federal Reserve and other central banks. These cuts had originally been expected to commence in the second half of 2023 but the first such cuts only started with the
In April I also commented on the worrying economic, social, geopolitical and climatic developments around the world which without improvement could only pose a long-term risk to growth and stability in markets and therefore to investment returns in the future.
To be added now to this long list of concerns is the result of the recent general election in the UK. With the
Dividends
We intend to pay an interim dividend of
This dividend payment represents a yield of approximately 10 percent on the ordinary share price averaged over the first six month period of the year.
Outlook
As previously noted, with the many political, social, economic, security and indeed climatic uncertainties facing the world today, both in the immediate future and in the longer-term, it is difficult to be very positive about the investment outlook going forward. And given the specific comments made above in relation to the
We have maintained a full investment policy over the course of many years, with an increasing focus over the last decade on US-based investments in the biotechnology sector. Latterly, these investments have enabled us to outperform our benchmarks on a total return basis, as noted above. As and when these investments approach and reach maturity, we will examine how best to pivot our investment activity into those areas and asset classes which we consider are best placed to respond to the many international and regional concerns we perceive which might adversely affect investment performance in the future.
As at 24 September, company net assets were £9.6 million, a decrease of 1.1 percent since the period end, and equivalent to
Managing Director’s Report
On 7th June this year, the
This is a long awaited development and marks an important milestone not just for Geron, allowing it to commence sales of the drug immediately and establish a real value both in the market and for potential pharma acquirers or partners, but also for our own portfolio and investment strategy from the initial modest investment in this company over 20 years ago to its position now as our largest single investment.
The extreme share price volatility shown by this stock over many years has made it a difficult stock to hold, but equally these price fluctuations, which did not necessarily reflect its true value and potential, enabled us over time to build up our investment in a cost effective way, even though on many occasions its poor performance has weighed heavily on our own portfolio performance. Nevertheless, as noted in the Chairman’s statement, this investment has enabled our portfolio to register outperformance in total return of over 50 percent against our benchmarks over the last two years. Additionally, our portfolio has also outperformed our benchmarks on the same basis by over 20 percent over both the last 3 years and 5 years.
The approval obtained in June resulted in a further increase in Geron’s share price, building on the rise of 80 percent reported in April in our 2023 final report when the approval was heralded by the FDA’s committee in March, to show an increase of 101 percent for the six month period to 30th June as a whole. In relation to book cost, the value of the holding stood at a premium to cost of 35 percent at the period end, although down from the premium of 70 percent on the price registered immediately after the approval announcement. At the date of this report, the premium to book cost has risen to 50 percent.
Geron was able to report encouraging sales within the first few weeks following approval, for which it had already built up a substantial sales, marketing and distribution team. It will be a few months before real visibility on sales levels and prospective revenues can be determined and an appropriate value attributed to the stock price. Given the long period of perceived undervaluation of this stock, an as yet unrevealed interest in the stock by big pharma, the ongoing trials of Rytelo in other haematological indications and imminently expected news of similar approvals from the
Investment climate outlook
The Chairman has commented above and in previous reports on the risks perceived to future investment activity and returns posed by the many political, social, economic, security and indeed climatic uncertainties facing the world today. These concerns are considered to be significant and wide-ranging and do not even take into account those unknown and unquantifiable risks which can arise unexpectedly, so called ‘black swan’ events such as for example the Covid pandemic in 2020, and which can cause extreme damage to systems, markets, economies, social practices, nations and indeed the world with severe consequences for asset values and investment returns. The outbreak of full-scale war in
Some future risks, whether immediate or long-term in nature, can also be the result of deliberate but misguided policy, as with the potential for substantial economic damage here in the
It is against that background of multiple uncertainty and the attendant risks to long-term investment in equities in particular that we will judge the re-calibration of our currently equity-heavy portfolio as the value of our investment in Geron reaches its perceived potential. A return to a more traditionally balanced and diversified portfolio across a full range of asset classes and currencies is anticipated.
27 September 2024
CONDENSED INCOME STATEMENT
Six months
ended 30 June
2024
Unaudited Unaudited Audited
6 months to 30 June 6 months to 30 June Year ended 31 December
2024 2023 2023
Revenue Capital Revenue Capital TotRevenue Capital
Note return Return Total Return Return al Return Return Total
£’000 £’000 £’000 £’000 £’000 £’0£’000 £’000 £’000
00
Investment 3 665 - 665 944 - 944 1,264 - 1,264
income
Holding
gains/
(losses) on
investments (2,196
at fair 4,695 4,695 747 747 (2,196) )
value - - -
through
profit or
loss
Gains/
(losses) on
disposal of
investments
at fair - 193 193 - 412 412 (175) (175)
value -
through
profit or
loss
Foreign
exchange (4) 15 11 34 (113) (79) (119) (83)
gains/ 36
(losses)
Expenses (219) (125) (344) (219) (124) (343) (453) (255) (708)
_____ _____ _____ _____ _____ _____ _____ _____ _____
Profit/
(loss)
before 442 4,778 5,220 759 922 1,681 847 (2,745) (1,898)
finance
costs and
tax
Finance (30) (18) (48) (19) (11) (30) (50) (36) (86)
costs
_____ _____ _____ _____ _____ _____ _____ _____ _____
Profit/ 412 4,760 5,172 740 911 1,651 797 (2,781) (1,984)
(loss)
before tax
Taxation 13 - 13 7 - 7 17 - 17
_____ _____ _____ _____ _____ _____ _____ _____ _____
Profit/
(loss) for 425 4,760 5,185 747 911 1,658 814 (2,781) (1,967)
the period
_____ _____ _____ _____ _____ _____ _____ _____ _____
Earnings/
(loss) per 5
ordinary
share
Basic 1.00p 19.04p 20.04p 2.29p 3.64p 5.93p 1.86p (11.12)p (9.26)p
Diluted* 1.00p 19.04p 20.04p 2.14p 2.60p 4.74p 1.86p (11.12)p (9.26)p
The company does not have any income or expense that is not included in profit for the period and all items derive from continuing operations. Accordingly, the ‘Profit/(loss) for the period’ is also
the ‘Total Comprehensive Income for the period’ as defined in IAS 1 (revised) and no separate Statement of Comprehensive Income has been presented.
The total column of this statement is the company’s Income Statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under
guidelines published by the
All profit and total comprehensive income is attributable to the equity holders of the company.
*Calculated in accordance with International Accounting Standard 33 ‘Earnings per Share’. Conversion of the preference shares will have an antidilutive effect. Upon conversion of the preference
shares to ordinary shares the anti-diluted earnings per share would be 1.22p (
CONDENSED STATEMENT OF CHANGES IN EQUITY Six months ended30 June 2024 Unaudited Six months ended 30 June 2024 Share Capital Retained Total capital* Reserve Earnings £’000 £’000 £’000 £’000 Balance at 31 December 2023 35,000 (30,709) 221 4,512 Return for the period - 4,760 425 5,185 ________ ________ ________ ________ Balance at 30 June 2024 35,000 (25,949) 646 9,697 ________ ________ ________ ________ Unaudited Six months ended 30 June 2023 Share Capital Retained capital* Reserve Earnings Total £’000 £’000 £’000 £’000 Balance at 31 December 2022 35,000 (27,928) 19 7,091 Return for the period - 911 747 1,658 ________ ________ ________ ________ Balance at 30 June 2023 35,000 (27,017) 766 8,749 ________ ________ ________ ________ Audited Year ended 31 December 2023 Share Capital Retained capital* Reserve Earnings Total £’000 £’000 £’000 £’000 Balance at 31 December 2022 35,000 (27,928) 19 7,091 (Loss)/return for the period - (2,781) 814 (1,767) Ordinary dividend paid - - (437) (437) Preference dividend paid - - (175) (175) ________ ________ ________ ________ Balance at 31 December 2023 35,000 (30,709) 221 4,512 ________ ________ ________ ________
*The company’s share capital comprises £35,000,000 (2023 - £35,000,000) being 25,000,000 ordinary shares of £1 (2023 - 25,000,000) and 10,000,000 non-voting convertible preference
shares of £1 each (2023 - 10,000,000).
CONDENSED BALANCE SHEET As at30 June 2024 Unaudited Unaudited Audited Note 30 June2024 30 June2023 31 December £’000 £’000 2023 £’000 Non-current assets Investments – at fair value through profit or loss (note 1) 7,508 6,403 4,895 Investment in subsidiaries – at fair 8,660 8,014 6,665 value through profit or loss _________ _________ _________ 16,168 14,417 11,560 Current assets Receivables 364 374 362 Cash and cash equivalents 12 34 39 _________ _________ _________ 376 408 401 _________ _________ _________ Total assets 16,544 14,825 11,961 _________ _________ _________ Current liabilities Trade and other payables (1,665) (1,092) (2,008) Bank credit facility (1,235) (1,341) (1,235) _________ _________ _________ (2,900) (2,433) (3,243) _________ _________ _________ Total assets less current liabilities 13,644 12,392 8,718 _________ _________ _________ Non – current liabilities (3,947) (3,643) (4,206) _________ _________ _________ Net assets 9,697 8,749 4,512 _________ _________ _________ Equity attributable to equity holders Ordinary share capital 25,000 25,000 25,000 Convertible preference share capital 10,000 10,000 10,000 Capital reserve (25,949) (27,017) (30,709) Retained revenue earnings 646 766 221 _________ _________ _________ Total equity 9,697 8,749 4,512 _________ _________ _________ Net assets per ordinary share – basic 6 £0.28 £0.25 £0.13 _________ _________ _________ Net assets per ordinary share – 6 £0.28 £0.25 £0.13 diluted _________ _________ _________
CONDENSED CASHFLOW STATEMENT Six months ended30 June 2024 Unaudited Unaudited Audited 6 months to 6 months to Year ended 30 June 30 June 31 December2023 2024 2023 £’000 £’000 £’000 Cash flow from operating activities Profit/(loss) before tax 5,172 1,651 (1,984) Adjustment for: (Gains)/losses on investments (4,888) (1,159) 2,371 Proceeds on disposal of investments at fair value through profit or loss 89 136 136 Purchases of investments at fair value through profit or loss - (450) (536) Interest 36 (3) 73 ________ ________ ________ Operating cash flows before movements in working capital 409 175 60 (Increase)/decrease in receivables (56) 108 97 Increase/(decrease) in payables 88 (594) (127) ________ ________ ________ Net cash from operating activities before interest 441 (311) 30 Interest paid (36) (23) (73) ________ ________ ________ Net cash flows from operating 405 (334) (43) activities ________ ________ ________ Cash flows from financing activities Dividends paid on ordinary shares (257) - (180) Dividends paid on preference shares (175) - - ________ ________ ________ Net cash used in financing activities (432) - (180) ________ ________ ________ Net decrease in cash and cash (27) (334) (223) equivalents Cash and cash equivalents at beginning (1,196) (973) (973) of period ________ ________ ________ Cash and cash equivalents at end of (1,223) (1,307) (1,196) period ________ ________ ________
NOTES TO THE COMPANY’S CONDENSED FINANCIAL STATEMENT
1. AccouNting Policies
Basis of preparation and statement of compliance
This interim report is prepared in accordance with IAS 34 ‘Interim Financial Reporting’ an International Financial Reporting Standard adopted by the
The company’s condensed financial statements should be read in conjunction with the annual financial statements for the year ended
The financial statements have not been audited or reviewed by the Auditor pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'. The Financial Statements for the six months to
In accordance with IFRS 10, the group does not consolidate its subsidiaries and therefore instead of preparing group accounts it prepares separate financial statements for the parent entity only.
The financial statements have been prepared on the historical cost basis except for the measurement at fair value of investments, derivative financial instruments and subsidiaries. The same accounting policies as those published in the statutory accounts for
Significant accounting policies
In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the
As the entity’s business is investing in financial assets with a view to profiting from their total return in the form of interest, dividends or increases in fair value, listed equities and fixed income securities are designated as fair value through profit or loss on initial recognition. The company manages and evaluates the performance of these investments on a fair value basis in accordance with its investment strategy, and information about the group is provided internally on this basis to the entity’s key management personnel.
Investments held at fair value through profit or loss are initially recognised at fair value.
All purchases and sales of investments are recognised on the trade date.
After initial recognition, investments, which are designated as at fair value through profit or loss, are measured at fair value. Gains or losses on investments designated at fair value through profit or loss are included in profit or loss as a capital item, and material transaction costs on acquisition and disposal of investments are expensed and included in the capital column of the income statement. For investments that are actively traded in organised financial markets, fair value is determined by reference to
In respect of unquoted investments, or where the market for a financial instrument is not active, fair value is established by using an appropriate valuation technique.
Investments of the company in subsidiary companies are held at the fair value of their underlying assets and liabilities.
This includes the valuation of film rights in
Where a subsidiary has negative net assets it is included in investments at £nil value and a provision for liabilities is made on the balance sheet equal to the value of the net liabilities of the subsidiary company where the ultimate parent company has entered into a guarantee to pay the liabilities as they fall due.
Dividend income from investments is recognised as income when the shareholders’ rights to receive payment has been established, normally the ex-dividend date.
Interest income on fixed interest securities is recognised on a time apportionment basis so as to reflect the effective interest rate of the security.
When special dividends are received, the underlying circumstances are reviewed on a case by case basis in determining whether the amount is capital or income in nature. Amounts recognised as income will form part of the company's distribution. Any tax thereon will follow the accounting treatment of the principal amount.
All expenses are accounted for on an accruals basis. Expenses are charged as revenue items in the income statement except as follows:
– transaction costs which are incurred on the purchase or sale of an investment designated as fair value through profit or loss are expensed and included in the capital column of the income statement;
– expenses are split and presented partly as capital items where a connection with the maintenance or enhancement of the value of the investments held can be demonstrated, and accordingly investment management and related costs have been allocated 50% (2023 – 50%) to revenue and 50% (2023 – 50%) to capital, in order to reflect the directors' long-term view of the nature of the expected investment returns of the company.
The 3.5% cumulative convertible non-redeemable preference shares issued by the company are classified as equity instruments in accordance with IAS 32 ‘Financial Instruments – Presentation’ as the company has no contractual obligation to redeem the preference shares for cash or pay preference dividends unless similar dividends are declared to ordinary shareholders.
Going Concern
The directors have assessed the ability of the company to continue as a going concern for a period of at least twelve months after the date of approval of these financial statements. The directors are satisfied that a given the assets of the company consist mainly of securities that are readily realisable and has available a credit facility with
2. SEGMENTAL REPORTING
The directors are of the opinion that the company is engaged in a single segment of business, that is investment business, and therefore no segmental information is provided.
3. Income
Unaudited Unaudited Audited
6 months 6 months Year ended
to 30 June to 30 June 31 December
2024 2023 2023
£’000 £’000 £’000
Income from investments 617 912 961
Other income 48 32 303
_________ _________ _________
665 944 1,264
_______ _______ _______
During the period the company received a dividend of £578,000 (
During the period the company recognised a foreign exchange gain of £19,000 (
Under IFRS 10 the income analysis above includes the parent company only rather than that of the group. In addition to the income above film revenues of £29,000 (
4. Dividends
Unaudited Unaudited AuditedYear ended
6 months to 6 months to 31 December
30 June 2024 30 June 2023 2023
Interim Interim Final
Pence per £’000 Pence per £’000 Pence per share £’000
share share
Ordinary - - - - 1.75 437
shares - paid
Ordinary
shares - 1.75 437 1.75 437 - -
proposed
Preference - - - - 1.75 175
shares -paid
Preference
shares 1.75 175 1.75 175 - -
-proposed
________ ________ ________
612 612 612
________ ________ ________
The directors have declared an interim dividend of 1.75p (2023 – 1.75p) per ordinary share for the year to
The dividends on ordinary shares are based on 25,000,000 ordinary £1 shares. Dividends on preference shares are based on 10,000,000 non-voting 3.5% convertible preference shares of £1.
The holders of the 3.5% convertible preference shares will be paid a dividend of £175,000 being 1.75p per share. The payment will be made on the same date as the dividend to the ordinary shareholders.
The non-payment in
5. Earnings/(loss) per ordinary share
Unaudited Unaudited Audited
6 months 6 months Year ended
to 30 June to 30 June 31 December
2024 2023 2023
£’000 £’000 £’000
Basic earnings/(loss) per share
Calculated on the basis of:
Net revenue profit after preference dividends 250 572 464
Net capital gain/(loss) 4,760 911 (2,781)
_________ _________ _________
Net total earnings/(loss) after preference 5,010 1,483 (2,317)
dividends
_______ _______ _______
Number’000 Number’000 Number’000
Ordinary shares in issue 25,000 25,000 25,000
_______ _______ _______
Diluted earnings/(loss) per share
Calculated on the basis of: £’000 £’000 £’000
Net revenue profit 250 747 464
Net capital gain/(loss) 4,760 911 (2,781)
_________ _________ _________
Profit/(loss) after taxation 5,010 1,658 (2,317)
_______ _______ _______
Number’000 Number’000 Number’000
Ordinary and preference shares in issue 35,000 35,000 35,000
_______ _______ _______
Diluted earnings per share is calculated taking into account the preference shares which are convertible to ordinary shares on a one for one basis, under certain conditions, at any time during the period
6. Net asset value attributable to each share
Basic net asset value attributable to each share has been calculated by reference to 25,000,000 ordinary shares, and company net assets attributable to shareholders as follows:
Unaudited Unaudited Audited
30 June 30 June 31 December
2024 2023 2023
£’000 £’000 £’000
Total net assets 9,697 8,749 4,512
Less convertible preference shares at fully (2,771) (2,500) (1,289)
diluted value
__________ __________ __________
Net assets attributable to ordinary 6,926 6,249 3,223
shareholders
________ ________ ________
Diluted net asset value is calculated on the total net assets in the table above and on 35,000,000 shares, taking into account the preference shares which are convertible to ordinary shares on a one for one basis, under certain conditions, at any time during the period
Basic net assets per share is calculated using a value of fully diluted net asset value for the preference shares.
7. NON-CURRENT LIABILITIES
Unaudited Unaudited Audited
Guarantee of subsidiary liability 30 June 30 June 31 December
2024 2023 2023
£’000 £’000 £’000
Opening provision 4,206 3,896 3,896
(Decrease)/increase in period (191) (367) 220
Transfer (from)/to allowance for doubtful debt (68) 114 90
__________ __________ __________
Closing provision 3,947 3,643 4,206
________ ________ ________
The provision is in respect of a guarantee made by the company for the liabilities of
During the year ended
8. RELATED PARTY TRANSACTIONS
The company rents its offices from
The salaries and pensions of the company’s employees, except for the three non-executive directors and one employee, are paid by
At the period end an amount of £393,000 (
During the period subsidiary
During the period the company paid interest of £11,000 (
During the period the company received interest of £nil (
During the period the company did not enter into any investment transactions to sell stock to
During the period the company did not enter into any investment transactions to purchase stock from
At
All transactions with subsidiaries were made on an arm’s length basis.
9. RETAINED EARNINGS
The table below shows the movement in the retained earnings analysed between revenue and capital items.
Capital Retained
reserve earnings
£’000 £’000
1 January 2024 (30,709) 221
Allocation of profit for the period 4,760 425
_________ _________
At 30 June 2024 (25,949) 646
_______ _______
The capital reserve includes £1,936,000 of investment holding gains (
10. FINANCIAL INSTRUMENTS
Financial instruments carried at fair value
All investments are carried at fair value. Other financial assets and liabilities of the company are held at amounts that approximate to fair value. The book value of cash at bank and bank loans included in these financial statements approximate to fair value because of their short-term maturity.
Fair value hierarchy
The table below analyses recurring fair value measurements for financial assets and financial liabilities.
These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly:
1. Prices of recent transactions for identical instruments. 2. Valuation techniques using observable market data.
Level 3: Unobservable inputs for the asset or liability.
Financial assets and financial liabilities at Level 1 Level 2 Level 3 Total fair value through profit or loss at 30 June 2024 £’000 £’000 £’000 £’000 Investments: Investments held at fair value through profit or 7,506 - 2 7,508 loss Subsidiary held at fair value through profit or - - 8,660 8,660 loss Total financial assets and liabilities carried at 7,506 - 8,662 16,168 fair value
With the exception of the
Fair Value Assets in Level 3
The following table shows the reconciliation from the opening balances to the closing balances for fair value measurement in Level 3 of the fair value hierarchy.
Level 3
£’000
Opening fair value at 1 January 2024 6,667
Investment holding gains 1,995
Closing fair value at 30 June 2024 8,662
Subsidiaries
The fair value of the subsidiaries is determined to be equal to the net asset values of the subsidiaries at period end plus the uplift in the revaluation of film rights in
The directors of
There have been no transfers between levels of the fair value hierarchy during the period. Transfers between levels of fair value hierarchy are deemed to have occurred at the date of the event or change in circumstances that caused the transfer.
11. FINANCIAL INFORMATION
The financial information contained in this report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the period ended
DIRECTORS’ STATEMENT
Principal risks and uncertainties
The principal risks and uncertainties faced by the company continue to be as described in the previous annual accounts. Further information on each of these areas, together with the risks associated with the company's financial instruments are shown in the Directors' Report and notes to the financial statements within the Annual Report and Accounts for the year ended
The Chairman’s Statement and Managing Director’s report include commentary on the main factors affecting the investment portfolio during the period and the outlook for the remainder of the year.
Directors’ Responsibilities Statement
The Directors are responsible for preparing the half-yearly report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge the interim financial statements, within the half-yearly report, have been prepared in accordance with IAS 34 'Interim Financial Reporting'. The Directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Directors further confirm that the Chairman’s Statement and Managing Director's Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the FCA’s Disclosure and Transparency Rules.
The Directors of the company are listed in the section preceding the Chairman’s Statement.
The half-yearly report was approved by the Board on
Jonathan C Woolf
Managing Director
