TIDMRCP
RNS Number : 9940X
RIT Capital Partners PLC
28 February 2017
Please click here to view the Company's Report and Accounts
http://www.rns-pdf.londonstockexchange.com/rns/9940X_-2017-2-27.pdf
28 February 2017
RIT Capital Partners plc
Results for the year ended 31 December 2016
RIT Capital Partners plc today published its results for the
year ended 31 December 2016.
Financial Highlights:
-- Growth in net assets in 2016 of almost GBP300 million (before dividends)
-- Total net assets stood at GBP2.7 billion, a new all-time high
-- Share price total return over the year of 14.2%
-- Premium averaged 4.6% over the year
-- NAV(1) total return of 12.1% for the year
-- NAV of 1,730 pence at 31 December 2016
Performance Highlights:
-- Defensive portfolio positioning with an emphasis on capital preservation
-- All investment categories contributed positively in the year
-- Positive returns achieved with prudent net quoted equity
exposure, averaging 46% over the year
-- Healthy contribution from increased allocation to Absolute Return & Credit
-- Cautious outlook for Sterling; Sterling exposure reduced in
the year to 24%, with emphasis placed on the US Dollar (62%)
-- Continued active management of currency exposure made a significant impact
-- Positive performance from the private investment book; two
sizeable new direct investments alongside profitable
realisations
-- A more challenging year for external equity managers, following strong performance in 2015
Dividends:
-- The Board intends to pay a dividend of 32 pence per share in
2017, comprising 16 pence per share in April and 16 pence per share
in October. This represents an increase of 3.2% over the previous
year
Summary:
-- Over the past five years, net assets have grown by more than
GBP1 billion (before dividends) and share price total return has
been 71%
-- Since inception, RIT has now participated in 75% of market
upside but only 39% of market declines
-- Over the same period, total shareholder return has compounded
at 12.9% per annum compared to the ACWI(2) of 6.8%
-- GBP1,000 invested in RIT at inception in 1988 would be worth
in excess of GBP30,000 today compared to the same amount invested
in the ACWI(2) which would be worth GBP6,500
Commenting, Lord Rothschild, Chairman of RIT Capital Partners
plc, said:
"Against a background of daunting uncertainty and political
turmoil, I am pleased to report that your Company's net asset value
per share during 2016 increased to 1,730 pence, representing a
return of 12.1%. Your Company's shares traded at a premium which
averaged 4.6% during the course of the year and total shareholder
returns amounted to 14.2%. Your Company's net assets increased by
GBP299 million (before dividends of GBP48 million) to GBP2,692
million, an all-time high.
Our investment policy throughout 2016 has been one of continuing
caution with an emphasis on capital preservation..... The success
of our asset allocation depends on capturing the right market
themes, the excellence of our external managers, stock selection,
private investments and a continued emphasis on Absolute Return and
Credit strategies. At this time of upheaval and uncertainty, our
investment portfolio will continue to be well diversified. There
could well be a period ahead of us when the avoidance of risk is as
high a priority as the pursuit of gain."
ENQUIRIES:
Brunswick Group LLP:
Tom Burns / Rowan Brown 020 7404 5959
About RIT Capital Partners plc:
RIT Capital Partners plc is an investment company listed on the
London Stock Exchange. Its net assets have grown from GBP280
million on listing in 1988 to over GBP2.7 billion today. RIT is
chaired by Lord Rothschild, whose family interests retain a
significant holding. www.ritcap.com
(1) Diluted net asset value per share with debt held at fair
value (NAV)
(2) Prior to the introduction of total return indices in
December 1998 the ACWI is based on the capital-only index measured
in Sterling. Thereafter it is the total return index based on 50%
of the ACWI measured in Sterling and 50% measured in local
currencies.
FINANCIAL SUMMARY
31 December
31 December 2016 2015 Change
----------------------- ---------------- ----------- -------
Net assets GBP2,692m GBP2,441m GBP251m
NAV per share(1) 1,730p 1,573p 157p
Share price 1,885p 1,681p 204p
Premium/(Discount) 9.0% 6.9% 2.1%
Dividends paid 31.0p 30.0p 1.0p
Gearing 14.7% 12.1% 2.6%
Ongoing Charges % 0.68% 0.74% -0.06%
NAV per share total
return 12.1%
Share price total
return 14.2%
RPI(2) plus 3.0% 5.5%
MSCI All Country World
Index(3) 18.9%
----------------------- ---------------- ----------- -------
Performance History 1 Year 3 Years 5 Years 10 Years
----------------------- ------ ------- ------- --------
Share price total
return 14.2% 58.7% 71.2% 119.4%
NAV per share total
return 12.1% 32.7% 65.9% 99.6%
RPI plus 3.0% 5.5% 15.0% 28.9% 75.7%
MSCI All Country World
Index 18.9% 34.0% 86.0% 88.5%
----------------------- ------ ------- ------- --------
(1) Diluted net asset value per share with debt held at fair
value.
(2) Retail Price Index.
(3) The MSCI All Country World Index (ACWI) we have adopted is a
total return index and is based on 50% of the ACWI measured in
Sterling and 50% measured in local currencies.
CHAIRMAN'S STATEMENT
Against a background of daunting uncertainty and political
turmoil, I am pleased to report that your Company's net asset value
per share during 2016 increased to 1,730 pence, representing a
return of 12.1%. Your Company's shares traded at a premium which
averaged 4.6% during the course of the year and total shareholder
returns amounted to 14.2%.
Your Company's net assets increased by GBP299 million (before
dividends of GBP48 million) to GBP2,692 million, an all-time high.
There has been a further modest increase of 1.3% in January, with
the month-end NAV at 1,753 pence. Over the last three and five
calendar years, the shareholder returns have amounted to 59% and
71% respectively.
Our investment policy throughout 2016 has been one of continuing
caution with an emphasis on capital preservation. Quoted equity
exposure was reduced, averaging 46% over the year, and we cut our
allocation to Sterling, ending the year at 24%. We continue to hold
gold and gold mining shares amounting to 6% of the portfolio.
On equities, some of our best performing managers of recent
years produced negative results in the year under review. Against
this, your Company increased its asset allocation to Absolute
Return and Credit which delivered satisfactory results, including
for example Eisler Capital, the macro manager where we were a
founder investor. Overall our focus has been to invest in companies
which stood to benefit from policymakers' continuing efforts to
reflate economies, such as US financials and the industrial
sector.
Private investments, both direct and those managed by third
parties, met our expectations, for example, benefiting from the
sale of our defensively structured investment in Williams &
Glyn, which generated a 1.8x return over three years. Two
significant new investments were made during the course of the year
into Acorn and CSL. Acorn is one of the world's largest coffee
businesses incorporating DE Master Blenders, Keurig Green Mountain
and Mondelez's former coffee business. CSL is the UK's second
largest alarm signalling company. Both were co-investments with
industry partners with whom we have developed close relationships -
Acorn alongside BDT Capital and CSL with ICONIQ Capital.
On currencies, we became cautious on the outlook for Sterling
over the course of the year, increasing our exposure to currencies
outside the UK, in particular the US Dollar. This represents a
continuation of RIT's long-standing policy of an unconstrained
approach to currency positioning.
Timing is paramount in achieving investment performance and our
2016 returns reflect a cautious approach in a period of increasing
uncertainty. Since the last World War, we have enjoyed some 70
years of patiently crafted international cooperation, which is now
threatened. Against this deeply worrying geo-political situation
one can point to a number of positive investment factors, for
example in the US, the proposed tax reduction for companies and
individuals, reforms of an over-regulated system and increases in
fiscal and infrastructure expenditure. These, however, come at a
time late in the business cycle, when the labour market is close to
full employment, with wage increases up by some 4% over the last
few months. Valuations are at the high end of their historical
range, inflation is returning and in these circumstances, it is
likely that interest rates in the US will rise meaningfully.
The impact on China of either straightforward tariffs or of a
'border-adjusted tax' would be negative, at a time when Chinese
economic momentum is fading and when it has to deal with the
problem of misallocation of capital on a huge scale. China will be
choosing between becoming a more open or closed society and while
its economy transitions from industrial growth and exports to being
more consumer-led.
We are all conscious of the risk of the European Union
disintegrating following last year's Brexit vote and in having to
deal with the problem of migration. The character of the European
trading block remains complex, unpredictable and in need of reform.
We should take into account however that the most significant
forecast improvement in growth for 2017 is in Europe and that its
stock markets are relatively undervalued.
In the UK, investors will be waiting for greater clarity about
the outcome of Brexit negotiations and the risks of upheaval which
will arise in leaving the EU. Short-term, the UK economy has
performed surprisingly well. We should bear in mind however, that
the World Bank and others have recently forecast a slowing of
growth in the current year and beyond while the current account
deficit remains daunting.
In these circumstances, our positioning is likely to remain
defensive, with an emphasis on returns uncorrelated to the overall
performance of equity markets. We have increased our exposure to
situations which should benefit from an environment of higher
inflation, for example by being short of Government Bonds after a
long period of declining inflation and low interest rates. The
success of our asset allocation depends on capturing the right
market themes, the excellence of our external managers, stock
selection, private investments and a continued emphasis on Absolute
Return and Credit strategies. At this time of upheaval and
uncertainty, our investment portfolio will continue to be well
diversified. There could well be a period ahead of us when the
avoidance of risk is as high a priority as the pursuit of gain.
Dividend
We are intending to pay a dividend of 32 pence per share in
2017, some increase above the current rate of inflation. This will
be paid in two equal payments of 16 pence in April and October. We
intend to maintain or increase this level in the years ahead,
subject to unforeseen circumstances.
Rothschild
27 February 2017
EXTRACT FROM STRATEGIC REPORT
Strategic Aims
Our strategic aims are best illustrated by our Corporate
Objective:
"to deliver long-term capital growth, while preserving
shareholders' capital; to invest without the constraints of a
formal benchmark, but to deliver for shareholders increases in
capital value in excess of the relevant indices over time."
We believe this accurately reflects our long-term aims. However,
a degree of clarification may assist shareholders in understanding
what we are trying to achieve for them over time - in particular
because we differ from many other large trusts who always aim to be
fully invested in quoted equities.
The most important objective is long-term capital growth while
preserving shareholders' capital. The essence of our investing DNA
is about protecting and enhancing shareholders' wealth.
There may be times when we will deliberately place protection of
shareholders' funds ahead of growth - as happened during the latter
stages of the dot-com era and also in the run up to the most recent
financial crisis. However, we recognise that such 'market timing'
is unlikely to be sustainable in the long term.
We believe that our active management of equity exposure,
combined with early identification of opportunities and themes
across multiple asset classes, is more likely to lead to long-term
outperformance. We would hope to display healthy participation in
up markets, and reasonable protection in down markets. Over time,
this should allow us to compound ahead of markets throughout the
cycles.
Indeed, since your Company's listing in 1988, we have
participated in 75% of the market upside but only 39% of the market
declines. This has resulted in our NAV per share total return
compounding at 11.5% per annum, a meaningful outperformance of
global equity markets. Over the same period the total return to
shareholders was 12.9% per annum.
Investment Approach
The strategic aims are expressed in more practical terms in our
Investment Policy:
"to invest in a widely diversified, international portfolio
across a range of asset classes, both quoted and unquoted; to
allocate part of the portfolio to exceptional managers in order to
ensure access to the best external talent available."
It is this policy which guides us as we manage your portfolio.
So, while we retain at our core an equity bias, we nonetheless have
the freedom to invest your portfolio across multiple asset classes,
geographies, industries and currencies. This has been the basis of
our style over many years - combining thematic investing with
individual securities, and private investments with public stocks.
The long-term success of your Company has been drawn from a
distinctive blend of individual stocks, private investments, equity
funds and currency positioning, all overlaid with macro exposure
management.
We believe the extent of our global reach and network of
contacts allows us to maximise our ability to deploy capital
effectively. We seek to capitalise on an in-house investment team
working closely with our core external managers, the majority of
whom are closed to new investors.
Above all, our approach is long term. For example, in relation
to private investments, we are not constrained by the typical
industry model of a limited life partnership. This means we can
hold such investments over an extended period and choose to realise
at an optimum time. On quoted investments, we aim to avoid being
forced sellers of stocks if we are comfortable with their
underlying fundamentals, even if it means incurring short-term
losses.
2016 Performance
I was pleased with our performance in 2016, in particular
against the background of the uncertain and volatile
environment.
The NAV total return for the year was 12.1%. This compared to
our first KPI (RPI plus 3%) at 5.5%, an outperformance of 6.6%
points. The relative KPI (the ACWI), returned 18.9% over the
year.
At the same time, our premium increased from 6.9%, to end the
year at 9.0%. As a result, the TSR over the year (our third KPI)
reached 14.2%.
If I look back over the last three years, I am gratified that,
notwithstanding our somewhat cautious stance, we have broadly kept
pace with markets. On an annualised basis, our NAV total return
over that period was 9.9% compared to the ACWI at 10.2%.
Shareholders have benefited from a total return of 59% compared to
34% from the market. While our Chairman has continued to provide
the benefit of his extensive experience, due credit must also be
given to our CIO, Ron Tabbouche, who has taken a carefully
structured approach to the portfolio, while also bringing enhanced
focus and conviction.
As ever, it is a team effort and I would like to put on record
my continuing thanks to our CFO, Andrew Jones and COO, Jonathan
Kestenbaum for their unfailing efforts on your behalf. Equally
important, our business only functions efficiently and effectively
thanks to all of our employees across each and every function.
Francesco Goedhuis
Chief Executive Officer
J. Rothschild Capital Management Limited
ASSET ALLOCATION AND PORTFOLIO CONTRIBUTION
31 December
31 December 2016 2016 2015 2015
Contribution Contribution
Asset Category % NAV % % NAV %
------------------ ------------------------ ---------------------- ------------------------ ----------------------
Quoted Equity 55.6% 0.4% 67.0% 5.8%
Private
Investments 23.9% 1.7% 23.0% 0.7%
Absolute Return &
Credit 23.6% 2.4% 14.2% 0.2%
Real Assets 3.0% 0.0% 3.5% (0.5%)
Government Bonds &
Rates 0.3% 0.1% 2.1% 0.2%
Currency(1) (0.2%) 9.6% (0.6%) 2.7%
------------------------ ---------------------- ------------------------ ----------------------
Total Investments 106.2% 14.2% 109.2% 9.1%
Liquidity,
Borrowings
& Other(2) (6.2%) (2.1%) (9.2%) (1.0%)
Total 100.0% 12.1% 100.0% 8.1%
------------------ ------------------------ ---------------------- ------------------------ ----------------------
Average New Quoted
Equity
Exposure(3) 46% 55%
------------------ ------------------------ ---------------------- ------------------------ ----------------------
(1) Currency exposure is managed centrally on an overlay basis
with the translation impact and the results of the currency hedging
and overlay activity included in this category.
(2) Within Contribution %, this category includes interest,
mark-to-market movements on the fixed interest notes and
expenses.
(3) Exposure reflects notional exposure through derivatives and
adjustments for derivatives and/or liquidity held by managers.
CURRENCY EXPOSURE OF NET ASSETS
31 December 31 December
2016 2015
% Net Assets % Net Assets
-------------- -------------- --------------
US Dollar 62% 63%
Sterling 24% 47%
Euro 4% -5%
Japanese Yen 3% 3%
Other 7% -8%
Total 100% 100%
-------------- -------------- --------------
Consolidated Income Statement
Year ended 31 December 2016 2015
GBP million Revenue Capital Total Revenue Capital Total
------------------------------ -------- -------- ------- -------- -------- -------
Income
Investment income 23.1 - 23.1 21.1 - 21.1
Other income 7.2 - 7.2 8.6 - 8.6
------------------------------ -------- -------- ------- -------- -------- -------
Income 30.3 - 30.3 29.7 - 29.7
Gains/(losses) on fair value
investments - 351.0 351.0 - 200.7 200.7
Gains/(losses) on monetary
items and borrowings - (38.1) (38.1) - (1.4) (1.4)
------------------------------ -------- -------- ------- -------- -------- -------
Gains/(losses) 30.3 312.9 343.2 29.7 199.3 229.0
Expenses
Operating expenses (21.7) (7.2) (28.9) (24.5) (5.8) (30.3)
Profit/(loss) before finance
costs and tax 8.6 305.7 314.3 5.2 193.5 198.7
Finance costs (13.3) - (13.3) (10.7) - (10.7)
------------------------------ -------- -------- ------- -------- -------- -------
Profit/(loss) before tax (4.7) 305.7 301.0 (5.5) 193.5 188.0
Taxation 1.1 - 1.1 0.5 (0.2) 0.3
------------------------------ -------- -------- ------- -------- -------- -------
Profit/(loss) for the year (3.6) 305.7 302.1 (5.0) 193.3 188.3
------------------------------ -------- -------- ------- -------- -------- -------
Earnings per ordinary share
- basic (2.3p) 198.0p 195.7p (3.2p) 125.1p 121.9p
Earnings per ordinary share
- diluted (2.3p) 197.3p 195.0p (3.2p) 124.6p 121.4p
------------------------------ -------- -------- ------- -------- -------- -------
The total column of this statement represents the Group's
Consolidated Income Statement, prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by
the European Union. The supplementary revenue and capital columns
are both prepared under guidance published by the Association of
Investment Companies (AIC). All items in the above statement derive
from continuing operations.
Consolidated Statement of Comprehensive Income
Year ended 31 December 2016 2015
GBP million Revenue Capital Total Revenue Capital Total
-------------------------------------- -------- -------- -------- -------- -------- -------
Profit/(loss) for the year (3.6) 305.7 302.1 (5.0) 193.3 188.3
Other comprehensive income/(expense)
that will not be subsequently
reclassified to profit or loss:
Revaluation gain/(loss) on property,
plant and equipment - (0.4) (0.4) - 3.2 3.2
Actuarial gain/(loss) in defined
benefit pension plan (3.4) - (3.4) 0.5 - 0.5
Deferred tax (charge)/credit
allocated to actuarial loss/(gain) 0.5 - 0.5 (0.3) - (0.3)
-------------------------------------- -------- -------- -------- -------- -------- -------
Total comprehensive income/(expense)
for the year (6.5) 305.3 298.8 (4.8) 196.5 191.7
-------------------------------------- -------- -------- -------- -------- -------- -------
The amounts included above are net of tax where applicable.
Consolidated BALANCE sheet
At 31 December
GBP million 2016 2015
------------------------------------ -------- --------
Non-current assets
Investments held at fair
value 2,938.8 2,759.0
Investment property 35.5 33.7
Property, plant and equipment 28.8 29.6
Deferred tax asset 3.7 2.1
Retirement benefit asset - 0.5
Derivative financial instruments 6.1 0.4
------------------------------------ -------- --------
3,012.9 2,825.3
------------------------------------ -------- --------
Current assets
Derivative financial instruments 35.0 15.0
Other receivables 178.6 90.5
Amounts owed by group undertakings 0.9 0.3
Tax receivable 0.1 0.2
Cash at bank 131.2 112.2
------------------------------------ -------- --------
345.8 218.2
------------------------------------ -------- --------
Total assets 3,358.7 3,043.5
------------------------------------ -------- --------
Current liabilities
Borrowings (275.0) (258.9)
Derivative financial instruments (35.6) (32.4)
Provisions (0.9) (0.5)
Other payables (61.2) (36.7)
Amounts owed to group undertakings (128.5) (128.6)
------------------------------------ -------- --------
(501.2) (457.1)
------------------------------------ -------- --------
Net current assets/(liabilities) (155.4) (238.9)
------------------------------------ -------- --------
Total assets less current
liabilities 2,857.5 2,586.4
------------------------------------ -------- --------
Non-current liabilities
Borrowings (156.4) (141.3)
Derivative financial instruments (4.0) (0.8)
Provisions (2.7) (2.5)
Finance lease liability (0.5) (0.5)
Retirement benefit liability (1.8) -
------------------------------------ -------- --------
(165.4) (145.1)
------------------------------------ -------- --------
Net assets 2,692.1 2,441.3
------------------------------------ -------- --------
Equity attributable to owners
of the Company
Share capital 155.4 155.4
Share premium 17.3 17.3
Capital redemption reserve 36.3 36.3
Own shares reserve (14.4) (13.0)
Share-based payment reserve 7.5 6.2
Capital reserve 2,471.6 2,213.8
Revenue reserve 1.1 7.6
Revaluation reserve 17.0 17.4
Other reserves 0.3 0.3
------------------------------------ -------- --------
Total equity 2,692.1 2,441.3
------------------------------------ -------- --------
Net asset value per ordinary
share - basic 1,739p 1,579p
Net asset value per ordinary
share - diluted 1,730p 1,573p
------------------------------------ -------- --------
The financial statements were approved by the Board of Directors
and authorised for issue on 27 February 2017.
PARENT COMPANY BALANCE SHEET
At 31 December
GBP million 2016 2015
------------------------------------ -------- --------
Non-current assets
Investments held at fair
value 2,798.1 2,615.8
Investment property 35.5 33.7
Property, plant and equipment 28.4 29.2
Investments in subsidiary
undertakings 165.6 164.8
Derivative financial instruments 6.1 0.4
------------------------------------ -------- --------
3,033.7 2,843.9
------------------------------------ -------- --------
Current assets
Derivative financial instruments 35.0 15.0
Other receivables 176.8 88.7
Amounts owed by group undertakings 1.0 0.3
Tax receivable 0.1 0.2
Cash at bank 125.0 104.9
------------------------------------ -------- --------
337.9 209.1
------------------------------------ -------- --------
Total assets 3,371.6 3,053.0
------------------------------------ -------- --------
Current liabilities
Borrowings (275.0) (258.9)
Derivative financial instruments (35.6) (32.4)
Provisions (0.9) (0.5)
Other payables (51.2) (25.6)
Amounts owed to group undertakings (221.7) (210.4)
------------------------------------ -------- --------
(584.4) (527.8)
------------------------------------ -------- --------
Net current assets/(liabilities) (246.5) (318.7)
------------------------------------ -------- --------
Total assets less current
liabilities 2,787.2 2,525.2
------------------------------------ -------- --------
Non-current liabilities
Borrowings (156.4) (141.3)
Derivative financial instruments (4.0) (0.8)
Provisions (2.7) (2.5)
Finance lease liability (0.5) (0.5)
(163.6) (145.1)
------------------------------------ -------- --------
Net assets 2,623.6 2,380.1
------------------------------------ -------- --------
Equity attributable to owners
of the Company
Share capital 155.4 155.4
Share premium reserve 17.3 17.3
Capital redemption reserve 36.3 36.3
Capital reserve:
At 1 January 2,200.3 2,044.1
Profit for the year 308.7 202.5
Dividends paid (47.9) (46.3)
------------------------------------ -------- --------
Capital reserve at 31 December 2,461.1 2,200.3
Revenue reserve:
At 1 January (46.6) (29.9)
Loss for the year (16.9) (16.7)
------------------------------------ -------- --------
Revenue reserve at 31 December (63.5) (46.6)
Revaluation reserve at 31
December 17.0 17.4
------------------------------------ -------- --------
Total equity 2,623.6 2,380.1
------------------------------------ -------- --------
The financial statements were approved by the Board of Directors
and authorised for issue on 27 February 2017.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital Own Share-based
Share Share redemption shares payment Capital Revenue Revaluation Other Total
GBP million capital premium reserve reserve reserve reserve reserve reserve reserves equity
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Balance at 1
January
2015 155.4 17.3 36.3 (9.2) 6.2 2,066.8 12.4 14.2 0.2 2,299.6
Profit/(loss) for
the year - - - - - 195.8 (7.5) - - 188.3
Revaluation gain
on property,
plant
and equipment - - - - - - - 3.2 - 3.2
Actuarial
gain/(loss)
in defined
benefit
plan - - - - - - 0.5 - - 0.5
Deferred tax
(charge)/credit
allocated to
actuarial
loss - - - - - - (0.3) - - (0.3)
Reallocation of
segregated
account
fees - - - - - (2.5) 2.5 - - -
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Total
comprehensive
income/(expense)
for the year - - - - - 193.3 (4.8) 3.2 - 191.7
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Dividends paid - - - - - (46.3) - - - (46.3)
Movement in Own
shares reserve - - - (3.8) - - - - - (3.8)
Movement in
Share-based
payment reserve - - - - - - - - - -
Other reserves - - - - - - - - 0.1 0.1
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Balance at 31
December
2015 155.4 17.3 36.3 (13.0) 6.2 2,213.8 7.6 17.4 0.3 2,441.3
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Balance at 1
January
2016 155.4 17.3 36.3 (13.0) 6.2 2,213.8 7.6 17.4 0.3 2,441.3
Profit/(loss) for
the year - - - - - 305.7 (3.6) - - 302.1
Revaluation loss
on property,
plant
and equipment - - - - - - - (0.4) - (0.4)
Actuarial
gain/(loss)
in defined
benefit
plan - - - - - - (3.4) - - (3.4)
Deferred tax
(charge)/credit
allocated to
actuarial
loss - - - - - - 0.5 - - 0.5
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Total
comprehensive
income/(expense)
for the year - - - - - 305.7 (6.5) (0.4) - 298.8
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Dividends paid - - - - - (47.9) - - - (47.9)
Movement in Own
shares reserve - - - (1.4) - - - - - (1.4)
Movement in
Share-based
payment reserve - - - - 1.3 - - - - 1.3
Other reserves - - - - - - - - - -
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
Balance at 31
December
2016 155.4 17.3 36.3 (14.4) 7.5 2,471.6 1.1 17.0 0.3 2,692.1
------------------ -------- -------- ----------- -------- ------------ -------- -------- ------------ --------- --------
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
Capital
Share Share redemption Capital Revenue Revaluation Total
GBP million capital premium reserve reserve reserve reserve equity
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Balance at 1 January
2015 155.4 17.3 36.3 2,044.1 (29.9) 14.2 2,237.4
Profit/(loss) for
the year - - - 205.0 (19.2) - 185.8
Revaluation gain
on property, plant
and equipment - - - - - 3.2 3.2
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Total comprehensive
income/(expense)
for the year - - - 205.0 (19.2) 3.2 189.0
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Dividends paid - - - (46.3) - - (46.3)
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Reallocation of segregated
account fees - - - (2.5) 2.5 - -
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Balance at 31 December
2015 155.4 17.3 36.3 2,200.3 (46.6) 17.4 2,380.1
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Balance at 1 January
2016 155.4 17.3 36.3 2,200.3 (46.6) 17.4 2,380.1
Profit/(loss) for
the year - - - 308.7 (16.9) - 291.8
Revaluation loss
on property, plant
and equipment - - - - - (0.4) (0.4)
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Total comprehensive
income/(expense)
for the year - - - 308.7 (16.9) (0.4) 291.4
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Dividends paid - - - (47.9) - - (47.9)
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
Balance at 31 December
2016 155.4 17.3 36.3 2,461.1 (63.5) 17.0 2,623.6
---------------------------- --------- --------- ------------ --------- --------- ------------ --------
CONSOLIDATED AND PARENT COMPANY CASH FLOW STATEMENT
Consolidated Consolidated Parent Company Parent Company
Year ended 31 December Cash Flow Cash Flow Cash Flow Cash Flow
GBP million 2016 2015 2016 2015
------------------------------- ------------- ------------- --------------- ---------------
Cash flows from operating
activities:
Cash inflow/(outflow) before
taxation and interest 97.0 82.6 92.6 70.8
Interest paid (13.3) (10.7) (13.3) (10.6)
------------------------------- ------------- ------------- --------------- ---------------
Net cash inflow/(outflow)
from operating activities 83.7 71.9 79.3 60.2
------------------------------- ------------- ------------- --------------- ---------------
Cash flows from investing
activities:
Purchase of property, plant
and equipment 0.1 - - -
------------------------------- ------------- ------------- --------------- ---------------
Net cash inflow/(outflow)
from investing activities 0.1 - - -
------------------------------- ------------- ------------- --------------- ---------------
Cash flows from financing
activities:
Purchase of ordinary shares
by Employee Benefit Trust(1) (5.6) (6.0) - -
Proceeds from borrowings 25.0 - 25.0 -
Repayments of borrowings (53.7) (158.2) (53.7) (158.2)
Proceeds from issue of loan
notes - 151.0 - 151.0
Equity dividend paid (47.9) (46.3) (47.9) (46.3)
------------------------------- ------------- ------------- --------------- ---------------
Net cash inflow/(outflow)
from financing activities (82.2) (59.5) (76.6) (53.5)
------------------------------- ------------- ------------- --------------- ---------------
Increase/(decrease) in cash
and cash equivalents in the
year 1.6 12.4 2.7 6.7
------------------------------- ------------- ------------- --------------- ---------------
Cash and cash equivalents
at the start of the year 134.8 118.5 127.5 116.9
------------------------------- ------------- ------------- --------------- ---------------
Effect of foreign exchange
rate changes on cash and
cash equivalents 34.1 3.9 34.1 3.9
------------------------------- ------------- ------------- --------------- ---------------
Cash and cash equivalents
at the year end 170.5 134.8 164.3 127.5
------------------------------- ------------- ------------- --------------- ---------------
Reconciliation:
Cash at bank 131.2 112.2 125.0 104.9
Money market funds (included
in portfolio investments) 39.3 22.6 39.3 22.6
------------------------------- ------------- ------------- --------------- ---------------
Cash and cash equivalents
at the year end 170.5 134.8 164.3 127.5
------------------------------- ------------- ------------- --------------- ---------------
(1) Shares are disclosed in 'Own shares reserve' on the
consolidated balance sheet.
EARNINGS/(LOSS) PER ORDINARY SHARE - BASIC AND DILUTED
The basic earnings per ordinary share for 2016 is based on the
profit of GBP302.1 million (2015: GBP188.3 million) and the
weighted average number of ordinary shares in issue during the year
of 154.4 million (2015: 154.5 million). The weighted average number
of shares is adjusted for shares held in the EBT in accordance with
IAS 33.
GBP million 2016 2015
--------------------------- ------ ------
Net revenue profit/(loss) (3.6) (5.0)
Net capital profit/(loss) 305.7 193.3
--------------------------- ------ ------
Total profit/(loss) for
the year 302.1 188.3
--------------------------- ------ ------
2016 pence 2015 pence
-------------------------- ----------- -----------
Revenue earnings/(loss)
per ordinary share -
basic (2.3) (3.2)
Capital earnings/(loss)
per ordinary share -
basic 198.0 125.1
-------------------------- ----------- -----------
Total earnings per share
- basic 195.7 121.9
-------------------------- ----------- -----------
The diluted earnings per ordinary share for the year is based on
the weighted average number of ordinary shares in issue during the
year, adjusted for the weighted average dilutive effect of SAR
awards at the average market price for the year.
million 2016 2015
------------------------- ------ ------
Weighted average number
of
shares in issue 154.4 154.5
Weighted average effect
of
dilutive SARs 0.5 0.7
------------------------- ------ ------
Total diluted shares 154.9 155.2
------------------------- ------ ------
2016 pence 2015 pence
-------------------------- ----------- -----------
Revenue earnings/(loss)
per ordinary share -
diluted (2.3) (3.2)
Capital earnings/(loss)
per ordinary share -
diluted 197.3 124.6
-------------------------- ----------- -----------
Total earnings per share
- diluted 195.0 121.4
-------------------------- ----------- -----------
NET ASSET VALUE PER ORDINARY SHARE - BASIC AND DILUTED
Net asset value per ordinary share is based on the following
data:
31 December 2016 2015
------------------------------ ----------- -----------
Net assets (GBP million) 2,692.1 2,441.3
------------------------------ ----------- -----------
Number of shares in issue
(million) 155.4 155.4
Own shares (million) (0.6) (0.8)
------------------------------ ----------- -----------
Subtotal (million) 154.8 154.6
Effect of dilutive potential
ordinary shares in respect
of SARs (million) 0.8 0.6
------------------------------ ----------- -----------
Diluted shares (million) 155.6 155.2
------------------------------ ----------- -----------
31 December 2016 pence 2015 pence
------------------------------ ----------- -----------
Net asset value per ordinary
share - basic 1,739 1,579
------------------------------ ----------- -----------
Net asset value per ordinary
share - diluted 1,730 1,573
------------------------------ ----------- -----------
DIVID
2016 2015
Pence Pence 2016 2015
per share per share GBP million GBP million
---------------- ----------- ----------- ------------- -------------
Dividends paid
in year 31.0 30.0 47.9 46.3
---------------- ----------- ----------- ------------- -------------
The above amounts were paid as distributions to equity holders
of the Company in the relevant periods from capital profits.
On 1 March 2016 the Board declared a first interim dividend of
15.5p per share in respect of the year ended 31 December 2016 that
was paid on 27 April 2016. A second interim dividend of 15.5p per
share was declared by the Board on 15 August 2016 and paid on 28
October 2016.
The Board declares the payment of a first interim dividend of
16.0p per share in respect of the year ending 31 December 2017.
This will be paid on 28 April 2017 to shareholders on the register
on 7 April 2017.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Report and
Accounts, 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 prepared the Group and Parent Company financial statements in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union. 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
Group and the Company, and of the profit or loss of the Group 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 accounting estimates that are reasonable
and prudent;
-- state whether applicable IFRSs as adopted by the European
Union have been followed, subject to any material departures
disclosed and explained in the financial statements; and
-- 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 the Group. The records must
enable Directors to ensure that the financial statements and the
Directors' Remuneration Report comply with the Companies Act 2006
as amended and, as regards the Group financial statements, Article
4 of the IAS Regulation. They are also responsible for safeguarding
the assets of the Company and the Group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
The Directors are responsible for the maintenance and integrity
of the Company's website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
The Directors consider that the Report and Accounts taken as a
whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Group's and
the Company's position, performance, business model and
strategy.
Each of the Directors, whose names and responsibilities are
listed in the Corporate Governance Report confirm that, to the best
of their knowledge:
-- the Group financial statements, which have been prepared in
accordance with IFRSs as adopted by the European Union, give a true
and fair view of the assets, liabilities, financial position and
profit of the Group; and
-- the Strategic Report contains a fair review of the
development and performance of the business and the position of the
Group, together with a description of the principal risks and
uncertainties that it faces.
BASIS OF PRESENTATION
The financial information for the year ended 31 December 2016
has been extracted from the statutory accounts for that year. The
auditors' report on these accounts was unqualified and did not
contain a statement under either Section 498(2) or (3) of the
Companies Act 2006. The statutory accounts will be delivered to the
Registrar of Companies following the Company's Annual General
Meeting.
The financial information for the year ended 31 December 2015
has been extracted from the statutory accounts for that year which
have been delivered to the Registrar of Companies. The auditors'
report on these accounts was unqualified and did not contain a
statement under either Section 498(2) or (3) of the Companies Act
2006.
REPORT AND ACCOUNTS
The full statutory accounts are available to be viewed or
downloaded from the Company's website at www.ritcap.com. Neither
the contents of the Company's website nor the contents of any
website accessible from the Company's website (or any other
website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEDEFWFWSELE
(END) Dow Jones Newswires
February 28, 2017 02:01 ET (07:01 GMT)
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