Albany Investment Trust Plc (the "Company")

 

Final Results

 

Summary of results

Capital	28th February 2011	28th February 2010	% Change
Total assets less current liabilities	£33,775,000	£30,113,000	+12.2
Net asset value per 20p share	336.95p	300.42p	+12.2
FT All-Share Index	3,106.58	2,736.80	+13.5
FTSE 100 Index	5,994.01	5,354.52	+11.9
Revenue	28th February 2011	28th February 2010	% Change
Net revenue after tax	£769,000	£910,000	-15.5
Total rate of interim and final dividends - net pence per share	10.2p	10.1p	+1.0
Revenue return per share	7.67p	9.08p	-15.5

 

Chairman's Statement

At the start of last year, more normal market conditions returned and the financial crises seemed to have been put behind us. Whilst significant challenges continued to lie ahead in the UK and the Eurozone given the significant reductions needed in the levels of government debt, optimism seemed to be returning to the US, Asia and the Emerging markets. Markets performed relatively strongly with the FTSE AllShare up 13.5% and the MSCI World up 18.5%.

Unfortunately since the end of our financial year the mood in the markets has been tempered to some extent by the upheaval in Egypt, Tunisia and some of the Arab states also, not least through the impact on the price of oil. The full implication of these events remains uncertain and the market has also had to factor in the impact of the horrific earthquake and tsunami in Japan which has implications not only domestically but also for global supply chain issues.

Albany performed in line with the FTSE All Share index with a rise of over 12% during the year - a very creditable performance given the impact of BP both in terms of dividend and capital falls, and the strong rise in Mining and Industrials sectors which offer little by way of yield and so are restrictive in the extent to which Albany can participate.

As we said at the time of the interim report we held the interim dividend at 3.9p and explained that we were reviewing the investment strategy for the fund.  We remain very proud of Albany's dividend history and see it as a key strength of the trust. We aim to continue to reward our shareholders with a growing dividend and in this vein are pleased to announce a final dividend of 6.30p. While we are cogniscent of the need for capital growth to maintain the sustainability of the dividend, we aim to continue to seek a balance of capital growth and income as a total return goal over time. Our strong revenue reserve position will give us flexibility in this regard.

With regard to the report and accounts, we are, in order to manage our cost base efficiently, no longer printing and distributing interim accounts. These will be available via our website, www.albanyinvestmenttrust.com and through the London Stock Exchange Regulatory News Service.

As you know Trevor Furlong retired as Chairman at 31st December 2010 after being in the role for 10 years. I would like to thank him for his strong stewardship through some turbulent times and we wish him well for the future.

Finally, I do hope to see as many of you as possible at the AGM at 2.30pm on 13th July where you will have a chance to meet the Board, the investment managers and advisers.

M Wolstenholme 

Chairman,

 

Investment Managers' Report

The strong rise in world equity markets in 2009 continued into the start of 2010. Despite major environmental, economic and political turbulence markets made significant progress.

Environmentally, the Icelandic ash cloud which caused disruption to travel and tour operators was closely followed by the BP Macondo well 'blow-out' in the Gulf of Mexico. This event sent BP shares plummeting and dragged oil majors and service companies with it. This not only affected capital values but also dividend income as BP, a major part of the UK dividend paying capacity, cancelled its 2010 payout.

Economically, the European sovereign debt crisis rocked credit markets, and wider recovery hopes, as Greece was revealed to be in a very precarious position. The fear of contagion across the region through the interwoven network of debt held by Europe's already distressed banking system forced the European Central Bank into action, announcing a huge financial support programme. This initially calmed market fears but the deterioration and subsequent 'bail out' of Ireland sparked fears up again and has led investors to remain wary of the continued fragility of peripheral European nations. 

Politically, the UK coalition government, although perhaps not ideal, appears to have established some credibility and having taken early control of budget excess, has stabilised the UK debt rating concern and funding levels. This has been aided by quantitative easing and low base rates.

Inflation continues to be a hotly debated topic. The deflationist camp seems to be losing the battle as globally nations struggle to cope with inflationary pressures of high commodity prices. China is trying to cool their economy, the UK inflation rate has been climbing and the ECB are increasingly nervous about rising cost pressures. However, given that growth remains fragile and there are sensible counter arguments to each of the inflationist positions, it would seem that on balance the start of the process of normalisation of interest rates is not likely to be before Q3 2011.

The report last year highlighted that cash was a relatively unattractive asset class given the accommodative monetary policy stance, not just in the UK but across the world. Cash has been maintained at low levels throughout the year, except for short term tactical reasons, in order to work the Trust assets effectively.

Reviewing the trust progress over the year, an overweight stance on consumer staples and utilities held back performance, but this was offset by a positive contribution from an underweight position in banks and good selections in the oil and gas sector. Specifically, BG has been very strong, and in the same sector, so has Afren. Despite being underweight in mining, the investments in BHP, Rio Tinto and Anglo American, held at various points performed well. Defensive sectors have been among the weaker performing sectors but investments in Vodafone and British American Tobacco have provided a positive contribution. Finally, the overseas element to the portfolio has been increasing over the year as opportunities have arisen. This is achieved mainly via the USA but with some Asian and European exposure. The portfolio includes Monsanto and Potash Corp providing exposure to the agricultural sectors; an example of themes that cannot necessarily be accessed by UK investments.

The existing strategy will continue. The focus will be on reasonable value stocks in sound financial health and where there are catalysts for value realisation. The level of volatility we have seen recently will cause some short term pain for a number of the holdings but will also provide opportunities to buy into good stocks on more attractive valuations. Growth in the Asian region has a structural nature to it and so companies that are well placed to benefit from this trend will continue to attract our attention. Prospects for dividend growth across the market looks promising and so income generation, and growth, will also be a feature of our investment focus. After a tricky period for investors, we are pleased to have kept better pace with the market in the year to February 2011 and look to the year to February 2012 with high hopes of performance that rewards our shareholders continuing support.

Rathbone Investment Management

 

Report of the Directors

The directors submit to the shareholders the annual report and financial statements for the year ended 28th February 2011

 

Accounts and dividends

Details of revenue are contained in the Income Statement set out below. An Interim dividend of 3.9 pence per Ordinary share was paid to shareholders on 26th November 2010.

The directors recommend payment of a final dividend of 6.3 pence per Ordinary share in respect of the year ended 28th February 2011. Subject to approval at the Annual General Meeting, the dividend will be paid on 19th July 2011.

 

Activities of the company

The company carries on the normal business of an investment trust as defined by Section 833, Companies Act 2006. The annual report adheres to the principles and recommendations in the AITC code.

 

Business review

A review of the business and future prospects is contained in the Chairman's Statement on above and the Investment Managers' Report below.

 

ISAs

The affairs of the company have been conducted in such a way as to comply with the qualifying equity rule as defined in the ISA Regulations. It is the current intention of the directors that the company will continue to conduct its affairs to satisfy this requirement.

 

Directors

P T Furlong retired as a director on 31st December 2010. Mr R A Morris and Mr J R A Nottingham retire under the terms of the Articles of Association and being eligible offer themselves for re-election. The company's procedures regarding the appointment of directors are contained in the Corporate Governance report below. Qualifying third party indemnity provisions are in place for the benefit of the directors.

 

Directors' interests

The interests of each director in the company's Ordinary 20p shares at 1st March 2010 and 28th February 2011 are shown on below. There were no changes in these shareholdings between 28th February 2011 and 13th May 2011. The directors do not have the right to subscribe for any further shares via share option schemes.

 

Net asset value

Particulars appear in the summary of results on above.

 

Capital structure

Details of the company's capital structure and voting rights are set out in note 13 to the financial statements.

 

Significant shareholdings

At 28th February 2011 the following shareholders owned more than 3% of the Companies Ordinary Shares: Giltspur Nominees Limited 6%

 

HM Revenue & Customs (HMRC) approval

The company, which is an Investment Company within the meaning of Section 833 Companies Act 2006, has received approval as an Investment Trust from the HMRC under Section 842 of the Income and Corporation Taxes Act 1988 in respect of the year ended 28th February 2010 and has subsequently directed its affairs to enable it to continue to seek such approval.

 

Principal risks, uncertainties and future performance

The principal risks facing the company relate to the company's investment activities. An explanation of these risks and how they are managed is contained in note 11 to the accounts. In addition, breach of section 842 of the Income and Corporation Taxes Act 1988 could lead to the company being subject to capital gains tax. The Investment Managers monitor investment movements to ensure the provisions of section 842 are not breached.

 

Payment policy and practice

It is the company's policy to settle the terms of payment with suppliers when agreeing the terms of the transaction, to ensure that suppliers are aware of these terms and to abide by them. At 28th February 2011 the company had no trade creditors (2010: Nil).

 

Other policies

As the company does not have any employees or premises, it does not have any policies in respect of environmental matters, employees or social and community issues.

 

Contractual arrangements

Details of arrangements with Rathbone Investment Management are set out in note 18.

 

International Financial Reporting Standards (IFRS)

The directors have decided not to voluntarily adopt IFRS. IFRS are currently mandatory only for consolidated financial statements.

 

Auditors

Grant Thornton UK LLP offer themselves for reappointment in accordance with Section 489 of the Companies Act 2006.

Port of Liverpool Building, Pier Head, Liverpool L3 1NW.

BY ORDER OF THE BOARD

T W EVANS Secretary,

 

Board of Directors

Manjit Wolstenholme

Aged 46

Appointed 1st September 2010. Currently Non Executive Director of Provident Financial, Capital & Regional plc, Future plc and Non Executive Governor of Manchester Academic Health and Science Centre. Prior to this 13 years at Dresdner Kleinwort and Partner at Gleacher Shacklock.

R A Morris CBE, DL

Aged 69

Joined the Board in January 1987 after being Secretary since June 1979. He is Chairman of the Park Prepayments Trustee Company Limited and Mace & Jones.

Non-Executive Director of Liverpool Women's Hospital. He has served as Deputy Lieutenant of Merseyside and as High Sheriff of Merseyside.

J R A Nottingham FCA

Aged 69

Joined the Board in July 1995. Nearly 50 years investment experience working with a number of leading investment institutions covering the whole range of investment areas including Investment Trusts, both in the UK and overseas.

Sir David Henshaw BA, MSocSci, FCMI,

Aged 62

Joined the Board in June 2004. Former Chief Executive of Liverpool City Council until March 2006 and Chief Executive of Liverpool Capital of Culture.  He recently completed a redesign of the UK Child Support system. He is Chairman of Alder Hey Children's Hospital Foundation Trust and has a number of other private and public interests.

Directors' Shareholding

	Beneficial		Non-beneficial
	2011	2010	2011	2010
R A Morris	10,030	10,030	27,500	40,694
J R A Nottingham	6,000	6,000	-	-
P T Furlong	-	2,500	-	-
Sir David Henshaw	-	-	-	-
M Wolstenholme	-	-

 

Corporate Governance

The company is committed to applying the highest principles of corporate governance commensurate with its size and nature. The Board is accountable to the company's shareholders for good corporate governance. This report and the Directors' Remuneration Report describe how it complies with the provisions of the Combined Code (2008).

 

Compliance

The company has complied throughout the year with the Code provisions set out in Section 1 of the Combined Code except as follows:

A.3.3: A senior independent director has not been nominated.

A.4.1: A nomination committee has not been set up.

B.1: Directors are paid only a basic salary.

B.2: A remuneration committee has not been set up.

C.3.1: An audit committee has not been set up.

 

The Board do not believe that the above committees would benefit the company at this time, as the work normally undertaken by such committees is carried out by the Board as a whole. Further, the Board do not believe that the nomination of a senior independent director, nor the payment of performance related remuneration to the directors, would be of benefit to the company given the size of the Board.

 

Application of the principles

Directors

The company supports the concept of an effective Board leading and controlling the company.

 

The Board met seven times during the year (Sir David Henshaw and R A Morris attended seven meetings, J R A Nottingham six, P T Furlong five and M Wolstenholme four) and is responsible for approving company policy and strategy, reviewing investment performance, financial reporting and communication.

The Board is supplied with appropriate and timely information and the directors are free to seek any further information they consider necessary. All directors have access to advice from the company secretary and independent professionals at the company's expense. Training is available from the appropriate sources for directors as necessary.

The Board comprises the Chairman and three non-executive directors, two of whom are independent (J R A Nottingham and Sir David Henshaw). The directors consider that J R A Nottingham remains independent despite his period of service exceeding nine years as his actions, advice and contributions at board meetings consistently display decision making in the best interests of the shareholders and as his personal shareholding is not significant. The Board composition provides a balance whereby the Board's decision making cannot be dominated by any individual. All directors take decisions objectively in the interests of the company.

M Wolstenholme was appointed Chairman on 1st January 2011, after being proposed and seconded by members of the Board and the decision being agreed by the Board as a whole, following the retirement of P T Furlong. The Chairman is responsible for leadership of the Board, ensuring its effectiveness in all aspects of its role, and setting its agenda. The Board confirms the appointment of the Chairman annually.

The Board members are described on above.

All independent directors are subject to re-election every three years up to the age of 70 or nine years' service and annually thereafter, and, on appointment, at the first AGM after appointment. Non-independent directors are re-elected annually.

Appointments of new directors are made on merit. Care is taken to ensure that appointees have sufficient time available to devote to the job.

Individual director's performance and the performance of the Board as a whole are evaluated annually by the Chairman, taking into account issues such as attendance and contribution quality and noting how this feeds into the company's overall performance.

 

Relations with shareholders

The company values the views of its shareholders and recognises their interest in the company's strategy and performance, Board membership and quality of management. The Chairman ensures that the views of shareholders are communicated to the Board as a whole.

The AGM, which is normally attended by all Board members, is used to communicate with private investors and they are encouraged to participate. Separate resolutions are proposed on each issue so that they can be given proper consideration and there is a resolution to adopt the annual report and accounts and a resolution to approve the Directors' Remuneration Report. The company counts all proxy votes and will indicate the level of proxies lodged on each resolution, after it has been dealt with by a show of hands. The company arranges for notices of the AGM and related papers to be sent to shareholders at least 20 working days before the meeting.

The share price discount, in absolute terms and relative to other similar investment trust companies, and the composition of the share register is discussed at every Board meeting. While there is no discount target, the Board is aware that discount volatility is unwelcome to many shareholders and that share price performance is the measure used by most investors.

The Board oversees the company's stockbroker's activities which are designed to stimulate demand for the company's shares and provide effective communication to existing and potential shareholders.

 

Accountability and audit

The Board presents a balanced and understandable assessment of the company's position and prospects in all interim and price-sensitive reports and reports to regulators as well as in the information required to be presented by statutory requirements. The responsibilities of the directors as regards the accounts and those of the auditors are described below. The Board has formal and transparent arrangements for considering how it applies the financial reporting and internal control procedures and for maintaining an appropriate relationship with the company's auditors.

Grant Thornton UK LLP remain as the company's auditor. The Board are aware of other providers of such services and regularly consider the competitiveness of the current provider against market rates.

The Board reviews the nature and extent of non-audit services supplied by the external auditors, seeking to balance objectivity and value for money. The directors review annually the level and nature of non-audit services provided by the external auditors.

 

Internal control

The Board is responsible for maintaining a sound system of internal control to safeguard shareholders' investment and the company's assets and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Board conducts a review annually of the company's system of internal controls. All material controls are covered, including financial, operational and compliance controls and systems to manage risks. The Board ensures that any necessary actions are taken to remedy significant failings or weaknesses as identified.

The company has established a system for identifying, evaluating and managing the company's key risks. Strategic risks are regularly reviewed by the Board and it has determined that the Risk Register which it has established will be monitored by the Board and reviewed formally at Board meetings, at least annually. The latest review was completed in December 2010.

The key risks reviewed cover the areas of:

·      Strategy and management

·      Independence

·      Outsourcing arrangements

·      Reputational risk

·      Reliability of investment manager

·      Fraud

·      Legislative requirements

·      Insurance

 

The key features of the company's system of internal financial control are as follows:

The directors have delegated day-to-day investment decisions to Rathbone Investment Management Limited. The Investment Manager operates within the investment guidelines set out by the Board. Compliance with the investment policy is monitored on a daily basis by Rathbone Investment Management Limited and reviewed by the Board monthly. The portfolio management is at the discretion of the Investment Manager. The board of directors have however laid down the following guidelines.

The trust must remain a general UK trust with up to 25% invested overseas, seeking to achieve a balance between capital growth and income. Investments may comprise UK listed companies, overseas listed companies, unit and investment trusts, fixed interest securities and cash. No more than 15% can be invested in any one company or held in cash. Unless with the express authority of the Board the fund manager will not invest in deriviatives such as warrants and futures. Rathbone Investment Management Limited, under instruction from the Board, also provides administration services for Albany Investment Trust plc. Management fees are payable for investment and administration services.

Rathbone Investment Management Limited is regulated by the Financial Services Authority and has a banking licence under the Financial Services Market Act 2000. This provides a high level of control over the procedures of Albany Investment Trust plc. The directors receive a report from the internal audit department of Rathbone Investment Management Limited in respect of internal procedures and controls on an annual basis.

The Board is of the view that the company has established procedures in place to identify, evaluate and manage the significant financial reporting risks faced by the company. Key elements of the company's internal control procedures include:

·      Well established budget functions that are regularly monitored throughout the year

·      Detailed management information is received by the Board on a monthly basis

The Board has also reviewed the operation and effectiveness of the company's systems of internal financial control and has considered the need for an internal audit function but has decided the size of the company does not justify it at present. However, it will keep the decision under annual review.

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and its assets consist mainly of securities that are readily realisable. For this reason they continue to adopt the going concern basis in preparing the financial statements.

ON BEHALF OF THE BOARD

M Wolstenholme Chairman

 

Statement of Directors' Responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

·      select suitable accounting policies and then apply them consistently

·      make judgements and estimates that are reasonable and prudent;

·      state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

·      prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as each of the directors are aware:

·  there is no relevant audit information of which the company's auditors are unaware; and

·  the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information, and to establish that the auditors are aware of that information.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

To the best of my knowledge:

·  the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the company, and

·  the annual report includes a fair review of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties that they face.

ON BEHALF OF THE BOARD
M Wolstenholme Chairman,

 

Directors' Remuneration Report

The Board recognises that directors' remuneration is of legitimate concern to the shareholders.

SECTION 1: Information not subject to audit

- The remuneration committee

A Remuneration Committee has not been set up, directors' remuneration being agreed by the Board as a whole.

- Policy on Directors' remuneration

The remuneration of the non-executive directors is determined by the Board. Letters of appointment are in place for a fixed period of three years for Sir David Henshaw and Mrs M Wolstenholme and for one year for Messrs Morris and Nottingham.

No compensation payments are due on termination.

The non-executive directors' remuneration consists entirely of a basic annual salary which is reviewed annually. Directors' salaries were last reviewed in December 2010 and will next be reviewed in December 2011.

Total Shareholder return

Year	Albany	FT Allshare
2006	100.00	100.00
2007	117.98	111.63
2008	111.63	108.66
2009	76.54	72.82
2010	99.64	107.30
2011	115.10	125.56

The graph above shows the company's Total Shareholder Return compared to the FT All Share Total Return Index, which the directors believe to be the most appropriate index for this purpose.

SECTION 2: Information subject to audit

- Directors' emoluments

Directors do not receive bonuses or share options. Pension contributions are not paid by the company on behalf of the directors.

 

	2011 £	2010 £
P T Furlong	13,950	16,750
M Wolstenholme	6,458	-
R A Morris	11,000	11,000
J R A Nottingham	11,000	11,000
Sir David Henshaw	11,000	11,000
	53,408	49,750

Approval

This report was approved by the Board of Directors on 20th May 2011 and is signed on its behalf by: M Wolstenholme.

 

Independent Auditor's Report

As at 28^th February 2011

We have audited the financial statements of Albany Investment Trust plc for the year ended 28th February 2011 which comprise the income statement, the reconciliation of movements in shareholders' funds, the balance sheet, the cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's 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 and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Respective responsibilities of directors and auditors

As explained more fully in the Directors' Responsibilities Statement set out above, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

 

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/apb/scope/private.cfm.

 

Opinion on financial statements

In our opinion the financial statements:

·      give a true and fair view of the state of the company's affairs as at 28th February 2011 and of its profit for the year then ended;

·      have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

·      have been prepared in accordance with the requirements of the Companies Act 2006.

 

Opinion on other matters prescribed by the Companies Act 2006

In our opinion:

·      the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

·      the information given in the Corporate Governance Statement set out above and in the notes to the financial statements with respect to internal control and risk management systems in relation to financial reporting processes and about share capital structures is consistent with the financial statements.

 

Matters on which we are required to report by exception

We have nothing to report in respect of the following:

Under the Companies Act 2006 we are required to report to you if, in our opinion:

·      adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

·      the financial statements and the part of the Directors' Remuneration Report to be audited are not in agreement with the accounting records and returns; or

·      certain disclosures of directors' remuneration specified by law are not made; or

·      we have not received all the information and explanations we require for our audit; or

·      a Corporate Governance Statement has not been prepared by the Company.

 

Under the Listing Rules, we are required to review:

·      the directors' statement, set out above in relation to going concern; and

·      the part of the Corporate Governance Statement relating to the company's compliance with the nine provisions of the June 2008 Combined code specified for our review

·      certain elements of the report to the shareholders by the Board on directors' remuneration

Kevin Engel

Senior Statutory Auditor

for and on behalf of Grant Thornton UK LLP

Statutory Auditor, Chartered Accountants

Liverpool

 

Income Statement

For the year ended 28th February 2011 (incorporating Profit & Loss Account)

	Notes	Revenue £'000	2011 Capital £'000	Total £'000	Revenue £'000	2010 Capital £'000	Total £'000
Investment holding gain	8	-	4,092	4,092	-	6,477	6,477
Income	2	1,050	-	1,050	1,139	-	1,139
Expenses	3	(281)	(187)	(468)	(229)	(172)	(401)
Return on ordinary activities before taxation		769	3,905	4,674	910	6,305	7,215
Taxation on ordinary activities	5	-	-	-	-	-	-
Return on ordinary activities after taxation for the financial year	12	769	3,905	4,674	910	6,305	7,215
Return per ordinary share: Basic and diluted	7	7.67p	38.96p	46.63p	9.08p	62.90p	71.98p

Reconciliation of movements in Shareholders' funds

	2011 £'000	2010 £'000
At the beginning of the year	30,113	23,905
Total gains and losses recognised since last financial statements	4,674	7,215
Dividends paid	(1,012)	(1,007)
At the end of the year	33,775	30,113

The accompanying notes are an integral part of the financial statements.

All revenue and capital items in the above statement derive from continuing operations.

The total column represents the company's profit and loss account. The returns shown in the supplementary revenue and capital columns are prepared under guidance published by the Association of Investment Companies.

No operations were acquired or discontinued in the year.

There were no recognised gains and losses other than as included in the income statement.

 

Balance Sheet

As at 28th February 2011

	Notes	2011 £'000	2010 £'000
Fixed assets:
Investments	8	33,012	29,652
Current assets:
Debtors	9	57	62
Cash at bank and in hand		762	451
		819	513
Creditors amounts falling due within one year	10	(56)	(52)
Net current assets		763	461
Total assets less current liabilities		33,775	30,113
Capital and reserves:
Called up share capital	13	2,005	2,005
Capital reserve - realised	12	30,170	26,259
Capital reserve - unrealised	12	75	81
Revenue reserve	12	1,525	1,768
Total shareholders' funds		33,775	30,113
Net asset value per ordinary share: Basic	14	336.95p	300.42p

The financial statements were approved by the Board of directors on 20th May 2011 and were signed on its behalf by:

M Wolstenholme Chairman

The accompanying notes are an integral part of the financial statements.

Company number: 429589

 

Cash Flow Statement

For the year ended 28th February 2011

	Notes	2011 £'000	2010 £'000
Operating activities
Investment income received		1,095	1,126
Bank interest received		44	39
Expenses paid		(464)	(393)
Net cash inflow from operating activities	16	675	772
Financial investment
Purchase of investments		(18,826)	(10,861)
Disposal of investments		19,474	10,496
Cash inflow / (outflow) from financial investments		648	(365)
Equity dividends paid		(1,012)	(1,007)
Increase / (decrease) in cash	15	311	(600)

The accompanying notes are an integral part of the financial statements.

 

Notes to the Financial Statements

1. Principal Accounting policies

A summary of the principal accounting policies is set out below which have remained unchanged from the preceding year.

 

a) Basis of accounting

The financial statements are prepared under the historical cost convention, except for the measurement at fair value of investments. The financial statements have been prepared in accordance with the Companies Act 2006 and applicable United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice) and with the Statement of Recommended Practice: 'Financial Statements of Investment Trust Companies' (revised January 2009).

 

b) Dividends

Dividends declared during the year to the holders of the equity instruments are recognised in the financial statements. Dividends declared to the holders of the equity instruments after the balance sheet date are not recognised as a liability. The aggregate amount of equity dividends proposed before approval of the financial statements, which have not been shown as liabilities at the balance sheet date, are disclosed in the notes to the financial statements. Dividends are charged direct to equity.

 

c) Valuation of investments

The investment portfolio is managed and its performance is evaluated on a fair value basis, in accordance with a documented investment strategy, and information about the investments is provided internally on that basis to the directors. Accordingly, investments are designated on initial recognition at fair value through profit or loss. Subsequent to initial recognition, investments are measured at fair value with changes in fair value recognised in the income statement. Quoted investments are valued at bid prices, as reported by the UK Listing Authority.

Unquoted investments are valued by the Board, at the Board's estimate of fair value, by reference to the following valuation guidelines: Asset values, earnings, dividends and other relevant factors.

Realised surpluses or deficits on the disposal of investments and permanent impairments in the value of investments are taken to capital reserve - realised, surpluses on revaluation of investments held on a recognised active market are taken to capital reserves - realised and unrealised surpluses and deficits on the revaluation of investments with no active market are taken to capital reserve - unrealised, as explained in note 1(h) below. Year end exchange rates are used to translate the value of investments which are denominated in foreign currencies.

 

d) Income

Dividends receivable on quoted equity shares are brought into account on the ex-dividend date. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a time apportionment basis so as to reflect the effective yield on the shares. Other returns on non-equity shares are recognised when the right to return is established. The fixed return on a debt security is recognised on a time apportionment basis so as to reflect the effective yield on the debt security.

 

e) Expenses

All expenses are accounted for on an accruals basis.

·      Expenses which are incidental to the disposal of an investment are deducted from the disposal proceeds of the investment.

·      Expenses relating to investment management are transferred in part to
capital reserve in accordance with the Board's expected long-term split of returns, in the form of capital gains and income respectively, from the entire investment portfolio.

 

f) Taxation

Investment income is shown excluding the related tax credit. The company has not provided deferred taxation on any capital gains and losses arising on the revaluation or disposal of investments due to the company's status as an Investment Trust Company.

 

g) Foreign currency

Transactions denominated in foreign currencies are recorded in the local currency at actual exchange rates as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year end are reported at the rates of exchange prevailing at the year end. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in the income statement.

 

h) Capital reserves

Capital reserve - realised

The following are transferred to this reserve:

·      Gains and losses on the realisation of investments

·      Realised exchange differences of a capital nature

·      A proportion of the expenses relating to investment management as set out above

·      Distributions received deemed to be capital in nature

·      Increases and decreases in the valuation of investments held on an active market at the year end.

Capital reserve - unrealised

The following are transferred to this reserve:

·      Increases and decreases in the valuation of investments held outside an active market at the year end.

·      Unrealised exchange differences of a capital nature.

 

i) Financial instruments

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

A financial liability exists where there is a contractual obligation to deliver cash or another financial asset to another entity, or to exchange financial assets or liabilities under potentially unfavourable conditions. Shares containing such obligations would be classified as financial liabilities. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Dividends and distributions relating to equity instruments are debited direct to equity.

Financial liabilities are obligations to pay cash or other financial assets and are recognised when the company becomes a party to the contractual provisions of the instrument. All financial liabilities are recorded initially at fair value, net of direct issue costs. Subsequently they are accounted for at amortised cost via the effective interest rate method.

Financial assets

Financial assets are divided into the following categories: loans and receivables and financial assets at fair value through profit or loss. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which they were acquired. The designation of financial assets is re-evaluated at every reporting date at which a choice of classification or accounting treatment is available.

All financial assets are recognised when the company becomes a party to the contractual provisions of the instrument. Financial assets other than those categorised as at fair value through profit or loss are recognised at fair value plus transaction costs. Financial assets categorised as at fair value through profit or loss are recognised initially at fair value with transaction costs expensed through the income statement.

Financial assets at fair value through profit or loss represent investments designated by the entity as at fair value through profit or loss upon initial recognition. Subsequent to initial recognition, the financial assets included in this category are measured at fair value with changes in fair value recognised in the income statement. Financial assets originally designated as financial assets at fair value through profit or loss may not be reclassified subsequently.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Debtors and cash are classified as loans and receivables. Loans and receivables are measured subsequent to initial recognition at amortised cost using the effective interest method. Any change in their value through impairment or reversal of impairment is recognised in the income statement.

 -An assessment for impairment is undertaken at least at each balance sheet date.

 

2. Income

Income from investments	2011 £'000	2010 £'000
Franked investment income	967	1,012
Overseas dividends	39	92
	1,006	1,104
Other income:
Bank interest	44	35
Total income	1,050	1,139
Total income comprises:
Dividends	1,006	1,104
Interest	44	35
	1,050	1,139
Income from investments:
Listed UK	962	1,007
Listed overseas	39	92
Unlisted	5	5
	1,006	1,104

 

3. Expenses

	2011 £'000	2010 £'000
Secretarial and other services	77	78
Directors' remuneration (see note 4)	53	50
Investment management fees	190	174
Investment manager's administration fee	30	29
Other professional fees	68	34
Foreign exchange losses	15	-
Auditors' remuneration (net of VAT) for
- audit	30	32
- other services persuant to such legislation	4	3
- taxation	1	1
	468	401

 

4. Directors' remuneration

The remuneration of the highest paid director amounted to £13,950 (2010: £16,750). Further details are set out above and details of related party transactions are provided in note 18. Social security costs amounted to £3,676 (2010: £3,447).

During the year, there were no employees other than the directors.

 

5. Taxation on ordinary activities

	Revenue£'000	2011 Capital £'000	Total £'000	Revenue £'000	2010 Capital £'000	Total £'000
Current taxation	-	-	-	-	-	-

The tax assessed for the period is lower than the standard rate of corporation tax in the UK of 21% (2010: 21%). The differences are explained as follows:

	2011 £'000	2010 £'000
Return on ordinary activities before tax	4,674	7,215
Return on ordinary activities multiplied by standard rate of corporation tax in the UK of 21%	982	1,515
Effect of:
Capital reserve movements	(820)	(1,324)
Franked investment income being exempt from taxation	(172)	(204)
Tax relief on expenses allocated to capital	(39)	(36)
Non-recognition of tax losses	49	49
Current tax charge for the year	-	-

At 28th February 2011 the Company had a potential deferred tax asset of £298,000 (2010: £265,000) in respect of taxable losses which are available to be carried forward and offset against future taxable profits. A deferred tax asset has not been provided on these losses as it is considered unlikely that the Company will make suitable taxable revenue profits in excess of deductible expenses in future periods. The potential deferred tax asset has been calculated using a corporation tax rate of 21% (2010: 21%).

 

6. Dividends

Dividends on equity shares paid in the year:	2011 Revenue £'000	Total £'000	2010 Revenue £'000	Total £'000
- ordinary - interim 2011 dividend of 3.9p per share (2010: 3.90p)	391	391	391	391
- ordinary - final 2010 dividend of 6.20p per share (2009: 6.15p)	621	621	616	616
	1,012	1,012	1,007	1,007
Dividends paid and proposed in the year:
Interim - paid in the year (3.9p, 2010: 3.9p)	391	391	391	391
Final - proposed (6.30p, 2010: 6.20p)	631	631	621	621
	1,022	1,022	1,012	1,012

 

7. Return per ordinary share

Basic revenue return per ordinary share is based on the revenue return on ordinary activities after taxation, and on 10,023,750 (2010: 10,023,750) ordinary shares. Basic capital return per ordinary share is based on capital return on ordinary activities after taxation, and on 10,023,750 (2010: 10,023,750) ordinary shares. Basic total return per ordinary share is based on the sum of revenue return and capital return as defined above, and on 10,023,750 (2010: 10,023,750) ordinary shares. Diluted returns equate to basic returns as there are no share options or other potentially dilutive ordinary shares.

 

8. Investments

	2011 £'000	2010 £'000
Investments listed on a recognised investment exchange	32,935	29,569
Unlisted investments	77	83
	33,012	29,652

 

	UK Fixed Interest Securities £'000	Listed Equities - UK £'000	Listed Equities  - Overseas £'000	Unlisted £'000	Total £'000
Opening book cost	511	21,047	4,074	2	25,634
Opening fair value adjustment	(22)	4,320	(361)	81	4,018
Opening valuation	489	25,367	3,713	83	29,652
Movements in the year:
Purchases at cost	_	16,443	2,383	-	18,826
Sales:
- proceeds	_	(16,686)	(2,788)	-	(19,474)
- realised profits / (losses) on sales	-	2,650	(323)	-	2,327
Increase / (decrease) in fair value	84	998	605	(6)	1,681
Closing valuation	573	28,772	3,590	77	33,012
Closing book cost	511	23,454	3,346	2	27,313
Closing fair value adjustment	62	5,318	244	75	5,699
Closing valuation	573	28,772	3,590	77	33,012

 

 

	2011 £'000	2010  £'000
Realised profits / (losses) on sale of investments	2,327	(819)
Capital distributions received	84	16
Increase in fair value	1,681	7,280
Investment Holding gain	4,092	6,477

 

9. Debtors

	2011 £'000	2010  £'000
Dividends due	57	62

 

10. Creditors: amounts falling due within one year

	2011 £'000	2010  £'000
Sundry creditors and accruals	56	52

 

11. Financial instruments

The holding of investments involves certain inherent risks. Events may occur that would result in either a reduction in the company's net assets or a reduction of revenue returns. Set out below are the principal risks inherent to the company's activities and the actions taken to manage those risks. The major risk arising from the company's financial instruments is market price risk. The Board reviews and agrees policies for reviewing these risks and these are summarised below.

The carrying value of the Company's investments, debtors, cash at bank and current liabilities is considered to be a fair approximation of their fair value.

The Company had no defaults during the period in respect of borrowings.

Financial risk management

(i) Market risk analysis

Market price risk arises mainly from uncertainty about the future prices of the financial instruments used in the company's business. It represents the potential loss the company might suffer through holding market positions in the face of price movements and movements in exchange rates. The risk is monitored by the Board on a monthly basis and on a daily basis by the Investment Manager, in accordance with the investment policy set out above. A full list of the company's investments is shown below. 98% of the company's net assets are invested in quoted equities. The net result for the year and shareholders' funds are sensitive to a reasonably possible change in quoted equity valuations of +10% and -10%. The net result for the year and shareholders' funds would increase or decrease by £3,293,000 (2010: £2,957,000) as a result of the above movements.

(ii) Credit risk analysis

The Company's management considers that all the above financial assets are not impaired for each of the reporting dates under review and are of good credit quality and no amounts are past due. The Company's financial assets are not secured by collateral or other credit enhancements.

(iii) Currency risk

The company is exposed to translation foreign exchange risk as noted above under market risk. At the year end overseas investments amounted to £3,590,000, 11% of the investment holding. The net result for the year and shareholders' funds are sensitive to a reasonably possible change in exchange rates of +5% and -5%. The net result for the year and shareholders' funds would increase or decrease by £179,000 (2010: £186,000) as a result of the above movements.

(iv) Interest rate risk

The company reviews the location and duration of its bank deposits to reduce the impact of interest rate fluctuations.

(v) Credit risk

The main credit risk arises from investment transactions with the companys' investment manager. Such transactions are normally settled within three days.

(vi) Liquidity risk analysis

The Company seeks to manage financial risk, to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitability. Liquidity is ensured by the accumulation of investment income and controls over the timing of investment purchase and sales.

The Company manages its liquidity needs by carefully monitoring the investment markets and disinvesting where necessary. Liquidity needs are monitored in various time bands, on a day to day and week to week basis, as well as on the basis of a rolling 30 day projection. Long-term liquidity needs for a 180 day and a 360 day lookout period are identified monthly.

The Company maintains cash to meet its liquidity requirements for up to 30 day periods. Funding in regards to long term liquidity needs is additionally secured by realising investments. At the year end the Company was exposed to liquidity risk of £56,000 (2010; £52,000), in respect of non-derivative financial liabilities. All of these amounts are due within 30 days of the year end.

The Company holds bank deposits with a limited number of financial institutions.

The carrying amount of the company's financial assets and liabilities as recognised at the balance sheet date may also be categorized as follows:

 

Assets at 28th February 2011	Loans and receivables £'000	Financial assets at fair value through profit or loss £'000	Total £'000
Investments	-	33,012	33,012
Debtors	57	-	57
Cash at bank and in hand	762	-	762
	819	33,012	33,831
Assets at 28th February 2010	Loans and receivables £'000	Financial assets at fair value through profit or loss £'000	Total £'000
Investments	-	29,652	29,652
Debtors	62	-	62
Cash at bank and in hand	451	-	451
	513	29,652	30,165

 

Financial liabilities are classified as other financial liabilities carried at amortised cost.

At 28th February 2011, the Company's liabilities have contractual maturities which are summarised below:

 

	Current within 6 months 2011 £'000	Current within 6 months 2010 £'000
Accrued expenses	56	52

The above contractual maturities reflect the gross undiscounted cash flows, which are equivalent to the carrying values of the liabilities at the balance sheet date.

The following table presents financial assets measured at fair value in the balance sheet in accordance with the fair value hierarchy. The hierarchy groups financial assets and liabilities into three levels based on the significance of the inputs used in measuring the fair value of the financial asset or liability. The fair value hierarchy has the following levels:

Level 1 - quoted prices (unadjusted) in active markets for identifiable assets or liabilities

Level 2 - inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs)

The level within which the financial asset is classified is determined based on the lowest level of significant input to the fair value measurement.

 

The financial assets and liabilities measured at fair value in the balance sheet are grouped into the fair value hierarchy as follows:

 

Level 1	2011 £'000	2010 £'000
Equity Investments and Fixed Interest Investments - Listed	33,012	29,652

 

Significant accounting policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in the accounting policies.

 

12. Reserves

	Capital reserve - realised £'000	Capital reserve - unrealised £'000	Revenue reserve £'000
At beginning of year	26,259	81	1,768
Net gain on realisation of investments	2,327	-	-
Expenses allocated to capital reserve	(187)	-	-
Capital distributions received	84	-	-
Increase / (Decrease) in fair value	1,687	(6)	-
Net revenue for the year after tax	-	-	769
Dividends paid in the year	-	-	(1,012)
At end of year	30,170	75	1,525

The balance on the revenue reserve represents the company's distributable reserves. The directors have proposed a final dividend for the year of £631,000.

 

13. Called-up share capital

	2011 £'000	2010  £'000
Authorised: 10,500,000 ordinary shares of 20p each	2,100	2,100
Allotted, called-up and fully-paid: 10,023,750 ordinary shares of 20p each	2,005	2,005

Dividends - The ordinary shares carry a right to receive dividends. Interim dividends are determined by the Directors, whereas the proposed final dividend is subject to shareholder approval.

Capital entitlement - On winding up, after meeting the liabilities of the Company, the surplus assets will be paid to ordinary shareholders in proportion to their shareholdings.

Voting - on a show of hands, every ordinary shareholder present in person or by proxy has one vote and on a poll every ordinary shareholder present in person has one vote for every share he/she holds and a proxy has one vote for every share in respect of which he/she is appointed.

 

14. Net asset value per share

The net asset value per share and the net asset values attributable to each class of share at the year end calculated in accordance with the Articles of Association were as follows:

	Net asset value per share attributable		Net asset value attributable
	2011	2010	2011	2010
Ordinary shares (basic)	336.95p	300.42p	33,775	30,113

Basic net asset value per ordinary share is based on net assets and on 10,023,750 (2010: 10,023,750) ordinary shares.

 

15. Analysis of changes in net funds during the year

	2011 £'000	2010  £'000
Beginning of year	451	1,051
Net cash inflow / (outflow)	311	(600)
End of year	762	451
Analysis of balances:
Cash at bank and in hand	762	451

 

16. Reconciliation of net total return on ordinary activities before taxation to net cash inflow from operating activities

	2011 £'000	2010  £'000
Net total return on ordinary activities before taxation	4,674	7,215
Less: Realised (profits) / losses on sale of investments	(2,327)	815
Less: Fair value movements	(1,681)	(7,280)
Decrease in debtors	5	10
Increase in sundry creditors and accruals	4	8
	675	772

 

17. Contingent liabilities

The company did not have any contingent liabilities at 28th February 2011 or 28th February 2010.

 

18. Related party transactions

The directors have delegated day-to-day investment decisions to Rathbone Investment Management Limited (RIM).

The appointment is for an indefinite period, subject to six months' notice by either party. RIM also provide administration services for the company. A management fee is payable of 0.7% per annum on the first £33m of the total value of investments and cash held within the portfolio and 0.5% thereafter, as well as a commission of £10 charged on acquisitions and disposals of investments. RIM is a wholly-owned subsidiary of Rathbone Bros plc, a listed FTSE 250 company, specialising in investment management for companies, private clients, trusts and pensions. Rathbone is regulated by the FSA and more details can be found on its website www.rathbones.com.

A proportion (85%: 2010: 85%) of Investment management fees are transferred to the capital reserve.

Fees of £219,845 (2010: £202,881) were payable to RIM during the year and are made up as follows:

	2011 £'000	2010  £'000
Investment management fees	190	174
Administration fees	30	29
	220	203

 

19. Capital management policies and procedures

The company's capital management objectives are:

·      To ensure the company's ability to continue as a going concern

·      To provide an adequate return to shareholders by investing in an appropriate portfolio of listed entities

The company's equity base is largely fixed and therefore capital is sourced through retained earnings and investment disposals. Capital is considered to be the Company's ordinary share capital as per note 13.

 

Analysis of Investment Funds

based on valuation as shown on the balance sheet

	Holding		Market Value 28th February 2011
UK Fixed Interest
Nationwide Building Society	700,000	6.024% Floating Rate	572,993
Resources
Mining
Anglo American plc	31,500	US $0.54 Ordinary shares	1,049,895
Rio Tinto plc	28,200	10p Ordinary shares	1,215,138
Oil & Gas
BG Group plc	90,000	10p Ordinary shares	1,346,400
BP plc	21,250	US$0.25 shares	1,051,131
Royal Dutch Shell plc	64,000	€0.7 B shares	1,406,720
Cairn Energy plc	125,000	0.6154p Ordinary shares	533,750
Oil Equipment Services & Distribution
Afren plc	448,146	1p Ordinary shares	717,034
Basic Industries
Electronic and Electrical Equipment
Laird plc	455,000	28 1/8p Ordinary shares	728,455
Non-cyclical Consumer Goods
Tobacco
British American Tobacco plc	57,000	25p Ordinary shares	1,403,055
Leisure Goods
Pace plc	320,000	5p Ordinary shares	687,360
Travel and Leisure
Betfair Group	37,000	0.1p Ordinary shares	320,975
Media
Pearson plc	86,800	25p Ordinary shares	910,532
WPP plc	141,000	10p Ordinary shares	1,192,860
Software & Computer Services
Playtech Ltd	116,000	NPV Ordinary shares	429,200
Non-cyclical Services
Food and Drink
Diageo plc	72,800	28 101/108p Ordinary shares	874,328
Tesco plc	105,000	5p Ordinary shares	424,358
Morrison (WM) Supermarkets plc	255,000	10p Ordinary shares	705,585
Unilever plc	45,000	3 1/9p Ordinary shares	820,350
General Retail
Halfords Group plc	532,784	1p Ordinary shares	464,880
Mobile Telecommunication Services
Vodafone Group plc	750,000	US$ 0.114 Ordinary shares	1,306,875
Support Services
Shanks Group plc	750,000	10p Ordinary shares	861,750
Interserve plc	325,000	10p Ordinary shares	778,375
Pharmaceutical & Biotechnology
AstraZeneca plc	32,000	US$ 0.25 Ordinary shares	958,560
Glaxosmithkline plc	83,000	25p Ordinary shares	979,815
Utilities
Electricity
Centrica plc	317,400	6 14/81p Ordinary shares	1,079,160
Scottish & Southern Energy plc	70,000	50p Ordinary shares	866,600
Financials
Banks
HSBC Holdings plc	140,000	US$0.50 Ordinary shares	949,060
Barclays plc	185,000	25p Ordinary shares	591,630
Lloyds Banking Group plc	600,000	10p Ordinary shares	371,700
			Subtotal 25,598,524
	Holding		Market Value 28th February 2011
Financials (continued)
Insurance
Aviva plc	160,000	25p Ordinary shares	746,080
Lancashire Holdings Ltd	96,000	US$0.50 Common shares	576,000
Real Estate
London & Stamford Property Ltd	335,000	10p Ordinary shares	420,090
Speciality & other finance
Man Group	763,518	US$ 3.5c Ordinary shares	766,824
Investment Companies
3i Infrastructure plc	1,038,461	NPV Ordinary shares	1,237,846
Unclassified Investments
Tennents Consolidated	6,528	15% £1 Preference shares	10,445
Tennents Consolidated	8,219	25p A Ordinary shares	32,876
Tennents Consolidated	7,468	25p Ordinary shares	33,606
Total UK Investments			29,422,291
European Investments
ABB Ltd	43,500	CHF2.02 (regd)	653,781
North American Investments
Goldman Sachs Group	5,000	US$0.01 Common Stock	503,474
Monsanto Co	12,600	US$0.01 Common Stock	556,910
Potash Corp of Saskatchewan	12,900	NPV Common Stock	488,558
Ensco plc	7,500	Spon ADR Each Rep 1 Cls A Ordinary	258,684
Microsoft Corp	39,800	NPV Common Stock	650,405
Asia Pacific Investments
Singapore Exchange	125,000	SG$0.01 Ordinary shares	477,734
			33,011,837

10 year historical record

Year ended 28th February	Issued Capital	Net Assets Available for Ordinary Capital	Net Asset Value Per Share	Net Revenue	Revenue Return Per Share	Dividends Per Share
	£	£	p	£	p	p
2002	2,004,750	24,627,000	245.69	784,000 (B)	7.82	7.00
2003	2,004,750	20,062,000	200.15	847,000	8.45	7.50
2004	2,004,750	24,340,000	242.82	599,000	5.98	7.75
2005	2,004,750	28,083,000	280.16	960,000 (A)	9.58	8.15
2006	2,004,750	34,166,000	340.85	906,000	9.04	8.45
2007	2,004,750	39,367,000	392.75	981,000	9.79	9.20
2008	2,004,750	36,290,000	362.04	1,141,000	11.4	9.75
2009	2,004,750	23,905,000	238.48	1,169,000	11.7	10.00
2010	2,004,750	30,113,000	300.42	910,000	9.08	10.10
2011	2,004,750	33,775,000	336.95	769,000	7.67	10.20

 

(A) Enhanced by special dividends amounting to £176,000

(B) Enhanced by special dividends amounting to £130,000

The figures for 2005 only have been amended to reflect the prior year adjustment in respect of the provision for dividends payable.