Source - RNS
RNS Number : 4772K
Henderson Intl. Income Trust PLC
10 April 2018
 

LEGAL ENTITY IDENTIFIER: 2138006N35XWGK2YUK38

 

10 April 2018                                                                                                               

 

 

HENDERSON INTERNATIONAL INCOME TRUST PLC

 

Unaudited results for the half-year ended 28 February 2018

 

This announcement contains regulated information

 

Investment objective

The Company's investment objective is to provide shareholders with a growing total annual dividend as well as capital appreciation.

 

Performance highlights for the six months to 28 February 2018

·       The first interim dividend payment for the year ending 31 August 2018 of 1.30p per ordinary share

       was paid to shareholders on 28 February 2018. A second interim dividend payment for the year ending

       31 August 2018 of 1.30p per ordinary share has been declared and will be paid to shareholders on

       31 May 2018. The dividend will be paid from the Company's revenue account.

 

·       The net asset value per share as at 28 February 2018 was 161.5p compared to 163.0p as at

       31 August 2017.

 

·       The premium as at 28 February 2018 was 0.6% compared to a premium of 0.5% as at 31 August 2017.

 

Total return performance (including dividends reinvested and excluding transaction costs)

 

6 months

%

1 year

%

3 years

%

Since launch

%

NAV1

0.8

9.8

41.6

109.95

Sector average2

-0.1

6.1

38.1

95.5

Benchmark3

2.3

6.8

46.9

127.4

Share price4

0.8

11.1

40.9

106.8

 

1  Calculated using published daily NAVs including current year revenue

2  The AIC Global Equity Income sector based on NAV

3  MSCI World (ex UK) Index (sterling adjusted)

4  Using mid-market share price

5  Incorporating the dilution resulting from the impact of the subscription shares which were exercised on

31 August 2014

 

Sources: AIC, Morningstar Direct, Janus Henderson and Datastream

 

 

 

 

 

INTERIM MANAGEMENT REPORT

CHAIRMAN'S STATEMENT

 

Performance and markets

During the six months to 28 February 2018 the net asset value ('NAV') total return per ordinary share was 0.8%. The Company's return on the ordinary share price (on the same basis) was also 0.8%. In comparison, the Company's benchmark total return was 2.3% (MSCI World (ex UK) Index (sterling adjusted)).

 

Economic growth around the world has continued to pick up over the period. News continues to be dominated by US government policy. Whilst investors remain concerned by potential US trade policy changes, the significant reduction in US corporate tax rates has driven earnings upgrades for many US companies and may stimulate investment.

 

Other notable trends over the period include increased demand for technology components and commodities, both of which have been driven by the improved economic growth environment. Against this backdrop the US Federal Reserve has continued to raise interest rates while some central banks are indicating that they will consider reducing their level of monetary stimulus. Over the period, the pound strengthened which was a drag on total return as the Company has no sterling assets.

 

Earnings and dividends

The revenue return per ordinary share during the six months to 28 February 2018 was 1.51p. A fourth interim dividend of 1.30p per ordinary share, for the year ended 31 August 2017, was paid to shareholders on 30 November 2017, bringing the total dividend paid in respect of the year ended 31 August 2017 to 4.90p per ordinary share (year ended 31 August 2016: 4.65p per ordinary share).

 

The board declared a first interim dividend payment for the year ending 31 August 2018 of 1.30p per ordinary share and this was paid to shareholders on 28 February 2018.  Subsequently, we have declared a second interim dividend of 1.30p per ordinary share that will be paid to shareholders on 31 May 2018. The board continues to monitor the level of dividend paid out to shareholders and aims to maintain the same level of dividend for the remaining six months of this financial year.

 

Gearing

Well-judged gearing enhances returns to shareholders. The board's current policy is to permit the fund manager to gear up to 25% of net assets at the time of drawdown or investment, as appropriate. Borrowing limits for this purpose include implied gearing through the use of derivatives. The gearing at the period end was 0.8% (31 August 2017: 0.3%).

 

Discount control

The Company's share price has traded close to its NAV over the period. The board continues to monitor the premium/discount to NAV and will consider appropriate action if the relationship between NAV and share price moves and remains out of line with the Company's peer group. However, there is a distinct limit to the board's ability to influence the premium or discount to NAV. Accordingly, we believe it is not in shareholders' interests to have a specific issuance or buy-back policy. We believe that it is sensible to retain flexibility; therefore we shall consider issuance and/or buy-backs where appropriate and subject to market conditions.

 

Material events and transactions during the period 

A total of 2,325,000 new shares were issued in the six months to 28 February 2018 and the proceeds were added to the portfolio. Since the period end a further 275,000 new shares have been issued.

 

Key Information Document

In line with the new European regulations for packaged investment products which took effect in January 2018, a Key Information Document ('KID') has been produced by the manager. The KID is based on prescribed guidelines with almost no scope for deviation. The projected returns are derived solely from past performance and in the view of your board should be treated with extreme caution as the board believes that past performance is not necessarily a reliable predictor of future performance.

 

 

Board changes

As set out in the 2017 annual report, Christopher Jonas decided to retire as chairman of the board with effect from the annual general meeting held on 7 December 2017. I thank Christopher for his leadership and for his immense contribution to the success of the Company since inception. 

 

Kasia Robinski who joined the board on 1 November 2017 has become the audit committee chairman as planned.

 

Outlook

Economic growth has been improving around the world while unemployment continues to fall in most major economies. Despite expected, but modest, interest rate increases in some countries such as the US and UK, elsewhere, monetary policy in general remains focused on stimulating economic activity.  Against this, the political landscape remains as uneven as ever. 

 

In these circumstances international diversification has a significant role to play in portfolio design. The board believes that the Company's mandate provides our fund manager with the flexibility required to adapt to the circumstances of the day and to position our portfolio in the light of his interpretation of them. The Company's portfolio has the ability to benefit from volatility and to deliver growth in dividend income and the potential to grow investors' capital in coming years.

 

Simon Jeffreys

Chairman

10 April 2018

 

 

 

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

 

• Investment activity and performance risks;

• Portfolio and market price risks;

• Tax and regulatory risks; and

• Operational risks.

 

Information on these risks and how they are managed is given in the annual report to 31 August 2017. In the view of the board, these principal risks and uncertainties were unchanged over the last six months and are as applicable to the remaining six months of the financial year as they were to the six months under review.

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors confirm that, to the best of their knowledge:

 

 

(a)

the financial statements for the half-year ended 28 February 2018 have been prepared in accordance with 'FRS 104 Interim Financial Reporting';

 

 

(b)

the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

 

 

(c)

the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

 

For and on behalf of the board

 

Simon Jeffreys

Chairman

10 April 2018

 

 

 

FUND MANAGER'S REPORT

 

Performance review

The portfolio produced a total return of 0.8% in net asset value ('NAV') per ordinary share over the period. This included dividends totalling 2.60p per share, which increased by 8.3% as compared to the same period in 2017.

 

The Company's investment process focuses on companies with attractive dividend yields, strong cash flow generation, and the potential to grow both earnings and distributions in the future. Income from the portfolio during the period has remained robust and the majority of our companies have increased or maintained their dividends. Dividend growth has been widely spread across sectors and regions. Examples of large increases in dividends include Italian utility Enel (17% year-on-year increase in payment for the period), US retailer Best Buy (21%), and US bank JP Morgan (12%). The US government passed a tax reform at the start of 2018 which significantly lowers the tax rates for companies' US profits and encourages the repatriation of earnings and cash that have been generated outside the US. This change in taxation increases the domestic earnings of many of our US holdings and coupled with the potential repatriation of overseas earnings creates the potential to increase dividend pay-outs.

 

The investment team's objective is to provide investors with an attractive, rising level of dividends and capital appreciation over the long term. Dividend growth from the portfolio has been excellent over the period but while we have produced a positive total return this has lagged the MSCI World (ex-UK) Index (sterling adjusted).  With the benefit of hindsight we have been a little cautious and could have taken more cyclical exposure.

 

Many companies are in the midst of a technological revolution, driven by improved connectivity and enhanced data processing power. Companies across many industries are investing more and more in technology and this sector is now the second largest in the portfolio (12.7%) and has contributed several of the most significant positive performers. These investments include Microsoft, Taiwan Semiconductor Manufacturing and the printer company HP Inc. All of these companies are leaders in their respective fields and are experiencing strong earnings growth. Other strong performers included paper and packaging company UPM-Kymmene, and US retailer Best Buy. More defensive sectors with less exposure to improving economic growth lagged the market, such as the pharmaceutical and telecommunications sectors. Many of the portfolio holdings in these sectors are delivering earnings growth but for now they remain out of favour relative to cyclical sectors. 

 

Portfolio positioning

The geographic weightings of the portfolio have not changed significantly over the period, and gearing remains low. The largest change in the positioning was the increased exposure to the oil sector. The fall in the price of oil in recent years has forced a previously undisciplined sector (in general) to focus on cash flow and profitability. We have been pleasantly surprised by the ability of certain companies to improve their profitability, and have taken advantage of the lack of interest in the sector to add exposure. Positions added included oil services company Tenaris, and oil exploration and production companies Occidental Petroleum and Vermilion Energy. The increased exposure was funded by the sale of certain telecommunication holdings, including Telenor, China Mobile and Portuguese operator NOS. Although many of these companies are providing infrastructure for the technological revolution discussed above, it has become increasingly apparent that they are limited in their ability to capture their share of the additional value streams due to the regulatory environment in which they operate.

 

Ben Lofthouse

Fund Manager

10 April 2018

 

INVESTMENT PORTFOLIO

at 28 February 2018

 

Company

 

Country

Market value

£'000

%

of portfolio

Basic materials

 

 

 

Tenaris

Italy

4,466

1.6

Dowdupont

US

4,442

1.5

Bayer

Germany

4,209

1.5

UPM-Kymmene

Finland

3,840

1.3

BASF

Germany

2,629

0.9

Nutrien

Canada

2,511

0.9

 

 

22,097

7.7

Consumer goods

 

 

 

Coca-Cola

US

5,789

2.0

Dali

China

5,188

1.8

Anta Sports

China

4,401

1.5

Toyota

Japan

4,069

1.4

Samsung

Korea

3,954

1.4

General Motors

US

3,884

1.4

Pandora

Denmark

2,916

1.0

Zhengzhou Yutong

China

2,498

0.9

Hanesbrands

US

2,045

0.7

Hasbro

US

1,337

0.5

 

 

36,081

12.6

Consumer services

 

 

 

Las Vegas Sands

US

5,456

1.9

Best Buy

US

4,430

1.6

Fairfax Media

Australia

2,366

0.8

Sabre

US

1,447

0.5

 

 

13,699

4.8

 

 

 

 

Financials

 

 

 

ING Groep

Netherlands

5,966

2.1

AXA

France

4,864

1.7

Nordea Bank

Sweden

4,606

1.6

Natixis

France

4,449

1.6

Macquarie

Australia

4,378

1.5

China Construction Bank

China

4,305

1.5

Malayan Banking

Malaysia

4,256

1.5

Van Lanschot

Netherlands

4,239

1.5

Mitsubishi Financial

Japan

4,118

1.4

Bank of China

China

4,041

1.4

Credit Suisse

Switzerland

3,276

1.1

Swedbank

Sweden

3,256

1.1

JP Morgan Chase

US

3,174

1.1

Bawag

US

2,919

1.0

BNP Paribas

France

2,728

1.0

Blackstone

US

2,599

0.9

Ares Capital

US

2,130

0.7

Cyrusone

US

1,483

0.5

 

 

66,787

23.2

 

 

 

 

 

Health care

 

 

 

Novartis

Switzerland

5,162

1.8

Pfizer

US

5,148

1.8

Roche

Switzerland

4,522

1.6

Medtronic

US

2,796

1.0

 

 

17,628

6.2

 

 

 

 

 

Industrials

 

 

 

Siemens

Germany

5,131

1.8

Jiangsu Expressway

China

3,391

1.2

Deutsche Post

Germany

3,309

1.1

Prosegur

Spain

2,931

1.0

Amcor

Australia

2,670

0.9

Watsco

US

1,102

0.4

 

 

18,534

6.4

 

Oil & gas

 

 

 

 

Chevron

US

6,478

2.3

 

Statoil

Norway

5,250

1.8

 

Star Petroleum Refining

US

4,344

1.5

 

Petrochina

China

4,284

1.5

 

Total

France

4,189

1.4

 

Occidental Petroleum

US

2,902

1.0

 

Vermilion Energy

Canada

2,569

0.9

 

 

 

30,016

10.4

 

Property

 

 

 

Eurocommercial

Netherlands

4,281

1.5

Crown Castle

US

3,527

1.2

Nexity

France

2,681

1.0

Scentre

Australia

2,642

0.9

Mapletree Greater China

Singapore

2,546

0.9

Icade

France

2,030

0.7

 

 

17,707

6.2

 

 

 

 

Technology

 

 

 

Microsoft

US

10,633

3.7

Taiwan Semiconductor Manufacturing

Taiwan

8,803

3.1

HP Inc

US

5,941

2.1

Cisco Systems

US

5,617

1.9

Maxim

US

3,018

1.1

Chinasoft

China

2,432

0.8

 

 

36,444

12.7

 

 

 

 

Telecommunications

 

 

 

Deutsche Telekom

Germany

5,398

1.9

Orange

France

3,921

1.4

HKT Trust and HKT Ltd

Hong Kong

3,293

1.1

SK Telecom

Korea

3,170

1.1

Spark New Zealand

New Zealand

2,962

1.0

Verizon Communications

US

2,939

1.0

Bezeq The Israeli Telecommunication Corporation

Israel

2,479

0.9

 

 

24,162

8.4

Utilities

 

 

 

Enel

Italy

4,076

1.4

 

 

4,076

1.4

 

 

 

 

Total investments

 

287,231

100.0

 

 

 

TEN LARGEST INVESTMENTS

at 28 February 2018

 

 

 

Company

 

 

 

Sector

 

 

 

Country

 

Market value

£'000

 

 

% of portfolio

Microsoft

Technology

US

10,633

3.7

Taiwan Semiconductor Manufacturing

 

Technology

 

Taiwan

 

8,803

 

3.1

Chevron

Oil & gas

US

6,478

2.3

ING Groep

Financials

Netherlands

5,966

2.1

HP Inc

Technology

US

5,941

2.1

Coca-Cola

Consumer goods

US

5,789

2.0

Cisco Systems

Technology

US

5,617

1.9

Las Vegas Sands

Consumer services

US

5,456

1.9

Deutsche Telekom

Telecommunications

Germany

5,398

1.9

Statoil

Oil & gas

Norway

5,250

1.8

 

These investments total £65,331,000 which represents 22.8% of the portfolio.

 

 

 

Sector exposure as a percentage of the investment portfolio excluding cash

 

 

28 February 2018

%

31 August 2017

%

Financials                             

23.2

21.1

Technology                             

12.7

11.7

Consumer goods                         

12.6

13.1

Oil & gas                              

10.4

6.8

Telecommunications                     

8.4

13.2

Basic materials                        

7.7

3.6

Industrials                            

6.4

8.1

Health care                            

6.2

5.7

Property

6.2

7.8

Consumer services                      

4.8

7.3

Utilities                              

1.4

1.6

 

100.0

100.0

 

 

Geographic exposure as a percentage of the investment portfolio excluding cash

 

 

28 February 2018

%

31 August 2017

%

US

33.3

34.2

China

10.6

9.0

France

8.8

9.4

Germany

7.2

8.0

Netherlands

5.1

6.0

Switzerland

4.5

4.9

Australia

4.1

4.8

Taiwan

3.1

2.8

Italy

3.0

1.6

Japan

2.8

2.6

Sweden

2.7

2.0

Korea

2.5

3.1

Canada

1.8

0.9

Norway

1.8

3.7

Malaysia

1.5

-

Finland

1.3

-

Hong Kong

1.1

1.3

Denmark

1.0

-

New Zealand

1.0

1.3

Spain

1.0

1.0

Singapore

0.9

0.9

Israel

0.9

1.2

Portugal

-

1.3

 

100.0

100.0

 

Source: Janus Henderson

 

 

CONDENSED INCOME STATEMENT

 

(Unaudited)

Half-year ended

28 February 2018

(Unaudited)

Half-year ended

28 February 2017

(Audited)

Year ended

31 August 2017

 

Revenue

 return

£'000

Capital return

 £'000

 

Total

£'000

Revenue

 return

£'000

Capital

return

 £'000

 

Total

£'000

Revenue

 return

£'000

Capital

return

 £'000

 

Total

£'000

 

(Losses)/gains on investments held at fair value through profit or loss

-

(148)

(148)

-

18,071

18,071

-

35,101

35,101

 

Income from investments held at fair value through profit or loss

3,614

-

3,614

3,217

-

3,217

10,882

-

10,882

 

Gains/(losses) on foreign exchange

-

23

23

-

(23)

(23)

-

(170)

(170)

 

Other income

44

-

44

176

-

176

297

-

297

 

Gross revenue and capital gains/(losses)

3,658

(125)

3,533

3,393

18,048

21,441

11,179

34,931

46,110

 

Management fee

(note 3)

(228)

(683)

(911)

(188)

(564)

(752)

(409)

(1,229)

(1,638)

 

Other administrative expenses

(277)

-

(277)

(258)

-

(258)

(530)

-

(530)

 

Net return before finance costs and taxation

3,153

(808)

2,345

2,947

17,484

20,431

10,240

33,702

43,942

 

Finance costs

(8)

(21)

(29)

(5)

(16)

(21)

(28)

(40)

(68)

 

Net return before taxation

3,145

(829)

2,316

2,942

17,468

20,410

10,212

33,662

43,874

 

Taxation on net return

(493)

4

(489)

(363)

-

(363)

(1,116)

78

(1,038)

 

Net return after taxation (note 5)

2,652

(825)

1,827

2,579

17,468

20,047

9,096

33,740

42,836

 

Return per ordinary share (note 5)

1.51p

(0.47)p

1.04p

1.65p

11.16p

12.81p

5.76p

21.36p

27.12p

                     

 

The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.

 

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity.

 

All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

 

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

 

 

CONDENSED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

Half-year ended 28 February 2018 (unaudited)  

 

Called up

share capital £'000

 

 

Share premium

account £'000

 

 

 

Special reserve

£'000

 

 

Other capital

reserves £'000

 

 

 

Revenue reserve £'000

 

 

 

 

Total £'000

At 31 August 2017

1,742

159,102

45,732

71,655

5,741

283,972

New shares allotted (note 9)

23

3,796

-

-

-

3,819

Issue costs

-

(16)

-

-

-

(16)

Net return after taxation

-

-

-

(825)

2,652

Dividends paid (note 6)

-

-

-

-

(4,566)

As at 28 February 2018

1,765

162,882

45,732

70,830

3,827

285,036

 

 

 

 

 

Half-year ended 28 February 2017 (unaudited)  

 

Called up

share capital £'000

 

 

Share premium

account £'000

 

 

 

Special reserve

£'000

 

 

Other capital

reserves £'000

 

 

 

Revenue reserve £'000

 

 

 

 

Total £'000

At 31 August 2016

1,561

131,328

45,732

37,915

4,368

220,904

New shares allotted

5

678

-

-

-

683

Issue costs

-

(4)

-

-

-

(4)

Net return after taxation

-

-

-

17,468

2,579

20,047

Dividends paid

-

-

-

-

(3,758)

(3,758)

As at 28 February 2017

1,566

132,002

45,732

55,383

3,189

237,872

 

 

 

 

 

Year ended 31 August 2017 (audited)

 Called up

share capital £'000

 

Share premium

account £'000

 

 

Special reserve

£'000

 

Other capital

reserves £'000

 

 

Revenue reserve £'000

 

 

 

Total £'000

At 31 August 2016

1,561

131,328

45,732

37,915

4,368

220,904

New shares allotted

44

6,842

-

-

-

6,886

Issue costs

-

(64)

-

-

-

(64)

Issue of ordinary shares from

C share conversion

137

21,363

-

-

-

21,500

Issue costs on C shares

-

(367)

-

-

-

(367)

Net return after taxation

-

-

-

33,740

9,096

42,836

Dividends paid

-

-

-

-

(7,723)

(7,723)

As at 31 August 2017

1,742

159,102

45,732

71,655

5,741

283,972

 

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

 

 

CONDENSED STATEMENT OF FINANCIAL POSITION

 

 

                           (Unaudited)

As at

28 February 2018

£'000

                

(Unaudited)

As at

28 February 2017

£'000

   

(Audited)

As at

31 August 2017

£'000

Investments held at fair value through profit or loss (note 4)

 

 

 

Fixed asset investments held at fair value through profit or loss

287,231

241,459

284,920

 

 

 

 

Current assets

 

 

 

Debtors

788

838

1,375

Cash at bank

-

                 815

4,099

 

788

1,653

5,474

 

 

 

 

Creditors: amounts falling due within one year

(2,983)

(5,240)

(6,422)

 

 

 

 

Net current liabilities

(2,195)

(3,587)

(948)

 

 

 

 

Total net assets

285,036

237,872

283,972

 

 

 

 

Capital and reserves

 

 

 

Called up share capital (note 9)

1,765

1,566

1,742

Share premium account

162,882

132,002

159,102

Special reserve

45,732

45,732

45,732

Other capital reserves

70,830

55,383

71,655

Revenue reserve

3,827

3,189

5,741

Total shareholders' funds

285,036

237,872

283,972

 

 

 

 

Net asset value per ordinary share - basic and diluted (note 7)

 

161.5p

 

151.9p

 

163.0p

 

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

  

 

 

CONDENSED STATEMENT OF CASH FLOWS

 

 

 

 

(Unaudited)

Half-year ended

28 February 2018

£'000

 

 

 

(Unaudited)

Half-year ended

28 February

2017

£'000

 

 

 (Audited)

Year ended

31 August

2017

£'000

Cash flows from operating activities

 

 

 

Net return before taxation

2,316

20,410

43,874

Add back: finance costs

29

21

68

Less: losses/(gains) on investments held at fair value through profit or loss

148

(18,071)

(35,101)

Add: (gain)/loss on foreign exchange

(23)

23

170

Withholding tax on dividends deducted at source

(432)

(363)

(1,318)

Taxation recovered

12

23

75

Decrease/(increase) in debtors

519

(30)

(303)

Increase/(decrease) in creditors

431

(363)

(209)

Net cash inflow from operating activities

3,000

1,650

7,256

 

 

 

 

Cash flows from investing activities

 

 

 

Purchase of investments

(61,833)

(64,246)

(112,706)

Sale of investments

53,419

55,026

82,907

Net cash outflow from investing activities

(8,414)

(9,220)

(29,799)

 

 

 

 

Cash flows from financing activities

 

 

 

Equity dividends paid (net of refund of unclaimed distributions and reclaimed distributions)

(4,566)

(3,758)

(7,723)

Proceeds from issue of ordinary shares

3,803

679

6,840

Net proceeds from issue of C shares

-

-

21,106

Interest paid

(28)

(21)

(68)

Net cash (outflow)/inflow from financing activities

(791)

(3,100)

20,155

 

 

 

 

Net decrease in cash and cash equivalents

(6,205)

(10,670)

(2,388)

 

 

 

 

Cash and cash equivalents at start of year

4,099

6,657

6,657

Effect of foreign exchange rates

23

(23)

(170)

Cash and cash equivalents at end of year

(2,083)

(4,036)

4,099

 

 

 

 

Comprising:

 

 

 

Cash at bank

-

815

4,099

Bank overdraft

(2,083)

(4,851)

-

 

(2,083)

(4,036)

4,099

 

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

 

 

NOTES TO THE FINANCIAL STATEMENTS

The half-year financial statements cover the period from 1 September 2017 to 28 February 2018.

 

1.

Principal activity

 

The Company is an investment company as defined in section 833 of the Companies Act 2006 and operates as an investment trust in accordance with section 1158 of the Corporation Tax Act 2010.

 

 

2.

Accounting policies - basis of preparation

The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, issued in March 2015, the revised reporting standard for half-year reporting that was issued following the introduction of FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, which is effective for periods commencing on or after 1 January 2015. The Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", in accordance with which the Company's financial statements are also prepared, was reissued by the Association of Investment Companies in November 2014 and updated in January 2017 with consequential amendments.

 

The condensed set of financial statements has been neither audited nor reviewed by the Company's auditor.

 

3.

Management fee

The management fee is payable quarterly in arrears at the rate of 0.65% per annum of the Company's net assets up to £250 million and the rate reduces to 0.60% per annum of net assets in excess of £250 million.  In accordance with the directors' policy on the allocation of expenses between income and capital, in each financial year 75% of the management fee payable is charged to capital and the remaining 25% to income.                                                                                                                                                  

4.

Investments held at fair value through profit or loss

The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on the valuation techniques used and are defined as follows under FRS 102:

                                                                                                                                                                     

Level 1: Valued using quoted prices in active markets for identical assets.                                                                                                                                                 

Level 2: Valued by reference to valuation techniques using observable inputs other than quoted prices included in level 1.                                                                         

                                                                                   

Level 3: Valued by reference to valuation techniques using inputs that are not based on observable market data.                       

                                                           

Financial assets at fair value through profit or loss at 28 February 2018

 

 

 

 

Level 1

Level 2

Level 3

Total

 

£'000

£'000

£'000

£'000

Equity investments

287,231

         -  

         -  

287,231

Total financial assets carried at fair value

287,231

         -  

         -  

287,231

 

Financial assets at fair value through profit or loss at 28 February 2017

 

 

 

 

Level 1

Level 2

Level 3

Total

 

£'000

£'000

£'000

£'000

Equity investments

241,459

         -  

         -  

241,459

Traded option contracts

-

(40)

-

(40)

Total financial assets carried at fair value

241,459

(40)

         -  

241,419

 

Financial assets at fair value through profit or loss at 31 August 2017

 

 

 

 

Level 1

Level 2

Level 3

Total

 

£'000

£'000

£'000

£'000

Equity investments

284,920

         -  

         -  

284,920

Traded option contracts

           -  

 (849)

         -  

        (849)

Total financial assets carried at fair value

284,920

    (849)

         -  

284,071

 

There have been no transfers between levels of the fair value hierarchy during the period.                                                                                                                                                     

5.

Return per ordinary share

 

 

 

(Unaudited)

Half-year ended

28 February 2018

£'000

(Unaudited)

Half-year ended

28 February 2017

£'000

 

(Audited)

Year ended

31 August

2017

£'000

The return per ordinary share is based on the following figures:

 

 

 

Revenue return

2,652

2,579

9,096

Capital return

(825)

17,468

33,740

Total

1,827

20,047

42,836

 

 

 

 

Weighted average number of ordinary shares in issue for each period

175,268,875

156,490,689

157,944,441

 

 

 

 

Revenue return per ordinary share

1.51p

1.65p

5.76p

Capital return per ordinary share

(0.47)p

11.16p

21.36p

Total return per ordinary share

1.04p

12.81p

27.12p

 

    

       The Company does not have any dilutive securities, therefore, the basic and diluted returns per share are

       the same.

 

6.

Dividends

 

 

£'000

 

Fourth interim dividend of 1.30p for the year ended 31 August 2017

(paid 30 November 2017)

 

2,275

 

First interim dividend of 1.30p for the year ending 31 August 2018

(paid 28 February 2018)

 

2,291

 

Total

4,566

 

 

The board has declared a second interim dividend of 1.30p per ordinary share to be paid on 31 May 2018 to shareholders registered at the close of business on 4 May 2018. The shares will be quoted ex-dividend on 3 May 2018.

 

7.    

Net asset value per ordinary share

The net asset value per ordinary share as at 28 February 2018 is calculated on the net assets attributable to shareholders funds of £285,036,000 (28 February 2017: £237,872,000; 31 August 2017: £283,972,000) and on 176,531,306 ordinary shares in issue as at 28 February 2018 (28 February 2017: 156,555,606; 31 August 2017: 174,206,306).

 

8.

Bank overdraft

 

At 28 February 2018, the Company had an overdraft with HSBC Bank plc of £2,083,000 (28 February 2017: £4,851,000; 31 August 2017: £nil).

 

9.

Called up share capital

 

 

 

 

 

Number of shares in issue

Nominal

value

£'000

 

Ordinary shares of 1p each

 

 

 

In issue at start of year

174,206,306

1,742

 

Allotment of new shares in the period

2,325,000

23

 

As at 28 February 2018

176,531,306

1,765

 

 

During the half-year to 28 February 2018 the Company issued 2,325,000 ordinary shares for a total consideration of £3,803,000 (28 February 2017: £679,000; 31 August 2017: £6,822,000) after deduction of issue costs.

 

Since the period end and up to 10 April 2018 the Company has issued 275,000 shares for net proceeds of £442,000.

 

10.

Related party transactions

The Company's current related parties are its directors and Janus Henderson. There have been no material transactions between the Company and its directors during the year. The only amounts paid to them were in respect of expenses and remuneration for which there were no outstanding amounts payable at the period end.

 

In relation to the provision of services by Janus Henderson (other than fees payable by the Company in the ordinary course of business and the provision of marketing services) there have been no material transactions with Janus Henderson affecting the financial position of the Company during the period under review.

 

11.

Going concern

The assets of the Company consist of securities that are readily realisable and, accordingly, the directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.

 

12.

Comparative information

 

The financial information contained in this half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The figures and financial information for the year ended 31 August 2017 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the independent auditor, which was unqualified and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006.

 

13.

 

Half-year report

 

 

 

 

The half-year report will shortly be available on the Company's website (www.hendersoninternationalincometrust.com) or in hard copy from the Company's registered office. An abbreviated version of this half-year report, the 'update', will be circulated to shareholders in mid-April 2018.

 

14.

General information

Company status

Registered as an investment company in England and Wales

Registration number: 7549407

Registered office: 201 Bishopsgate, London EC2M 3AE

 

London Stock Exchange (TIDM) Code: HINT

SEDOL/ISIN number: Ordinary shares  B3PHCS8/GB00B3PHC586

Global Intermediary Identification Number (GIIN): WRGF5X.99999.SL.826

Legal Entity Identifier (LEI): 2138006N35XWGK2YUK38

 

Directors

The directors of the Company are Simon Jeffreys (Chairman), Kasia Robinski (Chairman of the Audit Committee), William Eason, Richard Hills and Aidan Lisser.

 

Corporate Secretary

Henderson Secretarial Services Limited, represented by Wendy King, FCIS.

 

Website

Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersoninternationalincometrust.com.

 

For more information please contact:

 

Ben Lofthouse

Fund Manager

Henderson International Income Trust plc

Telephone: 020 7818 5187

 

 

James de Sausmarez

Director and Head of Investment Trusts

Janus Henderson Investors

Telephone: 020 7818 3349

Sarah Gibbons-Cook

Investor Relations and PR Manager

Janus Henderson Investors

Telephone: 020 7818 3198

 

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) are incorporated into, or form part of, this announcement.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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