RNS Number : 5184S
Witan Investment Trust PLC
12 March 2019
 

Page

This announcement contains regulated information

 

 

·    NAV total return of -8.4%, underperforming the benchmark's return of -6.5% by 1.9%

·    5 year NAV total return of 52.1%, compared with 44.6% for the benchmark

·    Share price discount to NAV 1.3% at year-end (2017: 1.6%)

·    Dividend increased by 11.9% to 23.5 pence, more than double that paid in 2008 and an unbroken run of increases since 1974

 

 

Page 2 of 29

 

continued

Page 3 of 29

 

continued

 

 

 

 

 

 

 

 

 

Page 4 of 29

 

 

Page 5 of 29

 

continued

Given current equity valuations, against a background where interest rates are likely to remain well below historic norms, we believe that 2019 has the potential to deliver attractive investment returns despite (or partly because of) the pervading gloom at the end of 2018. At worst, time appears to be more clearly on the side of contrarian, patient equity investment than a year ago, with valuations lower and risk aversion in the ascendant.

 

Performance drivers of Witan's growth in net asset value during 2018

A chart in the annual report shows the contributions (in pence per share) attributable to the various components of investment performance and costs, which together add up to the decline from the starting NAV for the year of 1096.2 pence to the ending NAV of 983.4 pence, after the payment of dividends to shareholders.

 

-8.4%

-6.3%

 

-6.5%

-6.5%

 

 

 

+0.2%

 

 

 

-0.6%

 

 

 

 

-0.4%

 

 

-0.8%

 

 

 

-0.4%

 

 

 

 

-1.2%

 

 

+0.2%

 

 

 

+0.0%

 

 

 

 

+0.2%

 

 

Other operating costs and tax

-0.5%

 

 

 

 

 

-0.5%

-1.9%

 

 

-1.9%

(1): n.b. figures may not sum, due to rounding

 

 

CEO's review

 

 

Investment manager

Artemis

151.4

7.5

(13.0)

(9.5)

7.7

Heronbridge

124.1

6.1

(10.1)

(9.5)

7.0

Lindsell Train

175.5

8.7

0.0

(9.5)

14.6

Lansdowne Partners

302.9

15.0

(5.4)

(3.4)

17.5

Pzena

276.5

13.7

(9.0)

(3.4)

8.9

Veritas

294.6

14.6

1.2

(3.4)

12.8

CRUX

92.1

4.6

(13.0)

(9.5)

(10.7)

SW Mitchell

85.9

4.2

(19.9)

(9.5)

(18.0)

Matthews

238.3

11.8

(5.6)

(7.9)

9.3

GQG

96.5

4.8

(8.8)

(8.9)

3.4

Witan Direct Holdings

201.8

10.0

(1.4)

(6.5)

11.2

(1)  The percentage of Witan's investments managed and cash balances held centrally by Witan.

(2)  The percentages are annualised where the date of appointment was more than one year ago.

 

CEO's review

established manager, Latitude Investment Management (see details below).

 

CEO's review

 

 

continued

 

continued

 

 

 

 

 

 

 

 

Strategic Report

 

Costs

 

ongoing charges figure ('OCF') (the recurring operating and investment management costs, as a percentage of average net assets) on a consistent basis with those published in previous years, to facilitate comparison. It is emphasised that the Company's investment performance is reported after all costs, whichever measure is used.

 

Strategic Report

Category of cost

Investment management base fees (note 4)

Other expenses (excluding loan arrangement and one-off costs) 

Less expenses relating to the subsidiary (those expenses not relating to the operation of the investment company).

Ongoing Charges Figure (including investment management base fees)

Investment management performance fees (note 4)

Ongoing Charges Figure

Portfolio transaction costs(including costs relating to manager changes)

Interest costs

Total costs including transaction costs and borrowing costs

Relative performance during the year (after all costs, valuing debt at fair value)

 

 

 

§ BNP Paribas Securities Services London Branch ('BNPSS') for depositary services, custody, investment accounting and administration;

§ Frostrow Capital LLP for company secretarial services;

§ DST Services Ltd. ('DST') as the savings plan administrator of Witan Wisdom and Jump Savings;

§ The Company takes specialist advice on regulatory compliance issues and, as required, procures legal, investment consulting, financial and tax advice.

§

§

§

§

§

In 2018, WIS had two principal sources of income. These were savings plan revenues and the fees (as AIFM or Executive Manager and for marketing services) paid by Witan and Witan Pacific. The main costs incurred were fees to the savings schemes administrator ('DST'), staff costs and professional advice to ensure compliance with regulatory and accounting obligations.

 

Principal risks and uncertainties

Market and investment portfolio

Risk

Mitigation

 

§

§

§

§

§

§

§

 

 

Operationally the multi-manager structure is robust, as the investment managers, the custodian and the fund accountants keep their own records which are regularly reconciled. The depositary, AIFM and the Board provide additional checks and safeguards. Management monitors the activities of all third parties and reports any significant issues to the Board.

 

 

 

6m), the Company has a short-term bank facility which can be used to meet its liabilities, and fixed-rate financing in the form of secured bonds, secured notes and cumulative preference shares. With the exception of the short-term facility, this financing will remain in place until at least 2025. Details of the Company's non-current liabilities are set out in note 13 to the accounts.

 

Annual Financial Report for the year ended 31 December 2018

continued

 

 

 

Statement of Directors' Responsibilities

in respect of the annual report and the financial statements

Responsibility statement

 

:

 

·   

·   

The directors also confirm that the financial statements, taken as a whole, are fair, balanced and understandable, and provide the information necessary for shareholders to assess the Company's position, performance, business model and strategy.

 

By order of the Board

 

H M Henderson

Chairman

 

A L C Bell

Chief Executive

11 March 2019

 

  

 

 

 

                                                                                                                                          Page 20 of 29

 

 

Financial Highlights as at 31 December 2018

 

Key data

 

Share price

NAV per ordinary share (debt at par value)(3)

NAV per ordinary share (debt at fair value)(3)

Discount (NAV including income, debt at fair value)(3)

 

 

Total return performance

 

 

Share price total return(1)(3)

-8.1

32.8

NAV total return(1)(3)    

-8.4

34.0

Witan benchmark(1)      

-6.5

32.4

FTSE All-Share Index(2)               

-9.5

19.5

FTSE All-World Index(2)           

-3.4

42.4

 

 

 

Gearing(3)

Ongoing charge excluding performance fee(3)

Ongoing charge including performance fee(3)

 

(1)        Source: Morningstar.

(2)                    Source: Morningstar.  See also FTSE International for conditions of use (www.ftse.com).

(3)       Alternative Performance Measure.

                                                                                                                                          Page 21 of 29

 

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2018

 

 

Year ended

31 December 2018

    Year ended

31 December 2017

 

Revenue

return

£'000

Capital

return

£'000

 

Total

£'000

Revenue

return

£'000

Capital

return

£'000

 

Total

£'000

Investment income (note 2)

58,200

-

58,200

54,425

-

54,425

Other income (note 3)

1,576

-

1,576

1,318

-

1,318

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

 

 

-

 

(194,105)

 

 

(194,105)

 

 

 

 

-

 

    289,268

 

 

 289,268

 

Foreign exchange losses on cash and cash equivalents

 

-

 

(1,083)

 

(1,083)

 

-

    (1,686)

 

  (1,686)

 

 

----------

----------

----------

----------

----------

----------

Total income

59,776

(195,188)

(135,412)

55,743

287,582

343,325

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Management and performance fees (note 4)

(2,535)

 

(9,163)

 

(11,698)

 

    (2,255)

    (7,294)

 

   (9,549)

 

 

 

 

 

 

 

 

Other expenses

(5,909)

(101)

(6,010)

    (6,361)

    (101)

    (6,462)

 

----------

----------

----------

----------

----------

----------

Profit/(loss)before finance costs and taxation

 

51,332

 

(204,452)

 

(153,120)

 

   47,127

 

   280,187

 

   327,314

 

 

 

 

 

 

 

 

Finance costs

(2,156)

(6,217)

(8,373)

(1,967)

(5,651)

(7,618)

 

----------

----------

----------

----------

----------

----------

Profit/(loss) before taxation

49,176

(210,669)

(161,493)

45,160

274,536

319,696

 

 

 

 

 

 

 

Taxation

(2,978)

-

(2,978)

(2,493)

-

(2,493)

 

----------

----------

----------

----------

----------

----------

Profit/(loss) attributable to equity shareholders of the parent company

 

46,198

 

 

(210,669)

 

 

(164,471)

 

 

42,667

 

 

274,536

 

 

317,203

 

 

----------

----------

----------

----------

----------

----------

 

 

 

 

 

 

 

Earnings per ordinary share (note 5)

25.92p

(118.18p)

(92.26p)

23.82p

153.24p

177.06p

 

======

======

======

======

======

======

 

The total column of this statement represents the Group's Statement of Comprehensive Income, prepared in accordance with IFRSs as adopted by the European Union.

 

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

 

The Group does not have any other comprehensive income and hence the total profit/(loss), as disclosed above, is the same as the Group's total comprehensive income.

 

All items in the above statement derive from continuing operations.

 

All income is attributable to the equity holders of Witan Investment Trust plc, the parent company. There are no non-controlling interests.

 

 

 

                                               WITAN INVESTMENT TRUST PLC

 

Consolidated and Individual Statement of Changes in Equity

for the year ended 31 December 2018

 

Group: Year ended 31 December 2018

 

 

Ordinary

Share

Capital

Other

 

 

 

 

share

premium

redemption

capital

Revenue

 

 

 

capital

account

reserve

reserves

reserve

Total

 

 

£'000

£'000

£'000

£'000

£'000

£'000

Total equity at 31 December 2017

50,018

99,251

46,498

1,712,019

72,735

1,980,521

Total comprehensive income:

 

 

 

 

 

 

(Loss)/profit for the year

-

-

-

(210,669)

46,198

(164,471)

Transactions with owners,

 

 

 

 

 

 

 recorded directly to equity:

 

 

 

 

 

 

  Ordinary dividends paid (note 7)

-

-

-

-

(40,090)

(40,090)

  Buybacks of ordinary shares (held in treasury)

 

-

 

-

 

-

 

(2,518)

 

-

 

(2,518)

 

 

--------

---------

---------

------------

---------

------------

Total equity at 31 December 2018

50,018

99,251

46,498

1,498,832

78,843

1,773,442

 

 

 

 

 

 

 

 

Company: Year ended 31 December 2018

 

 

Ordinary

Share

Capital

Other

 

 

 

 

share

premium

redemption

capital

Revenue

 

 

 

capital

account

reserve

reserves

reserve

Total

 

 

£'000

£'000

£'000

£'000

£'000

£'000

Total equity at 31 December 2017

50,018

99,251

46,498

1,712,471

72,283

1,980,521

Total comprehensive income:

 

 

 

 

 

 

(Loss)/profit for the year

-

-

-

(211,030)

46,559

(164,471)

Transactions with owners,

 

 

 

 

 

 

   recorded directly to equity:

 

 

 

 

 

 

  Ordinary dividends paid (note 7)

-

-

-

-

(40,090)

(40,090)

  Buybacks of ordinary shares (held in treasury)

 

-

 

-

 

-

 

(2,518)

 

-

 

(2,518)

 

 

--------

---------

---------

------------

---------

------------

Total equity at 31 December 2018

50,018

99,251

46,498

1,498,923

78,752

1,773,442

 

 

 

 

 

 

 

 

Group: Year ended 31 December 2017

 

 

 Ordinary

Share

Capital

Other

 

 

 

 

share

premium

redemption

capital

Revenue

 

 

 

capital

account

reserve

reserves

reserve

Total

 

 

£'000

£'000

£'000

£'000

£'000

£'000

Total equity at 31 December 2016

50,018

99,251

46,498

1,464,105

66,765

1,726,637

Total comprehensive income:

 

 

 

 

 

 

 Profit for the year

-

-

-

274,536

42,667

317,203

Transactions with owners,

 

 

 

 

 

 

   recorded directly to equity:

 

 

 

 

 

 

  Ordinary dividends paid (note 7)

-

-

-

-

(36,697)

(36,697)

  Buybacks of ordinary shares (held in treasury)

-

-

-

(26,622)

-

(26,622)

 

 

---------

---------

------------

---------

------------

------------

Total equity at 31 December 2017

50,018

99,251

46,498

1,712,019

72,735

1,980,521

 

 

 

 

 

 

 

 

Company: Year ended 31 December 2017

 

 

Ordinary

Share

Capital

Other

 

 

 

 

share

premium

redemption

capital

Revenue

 

 

 

capital

account

reserve

reserves

reserve

Total

 

 

£'000

£'000

£'000

£'000

£'000

        £'000

Total equity at 31 December 2016

50,018

99,251

46,498

1,464,915

65,955

1,726,637

Total comprehensive income:

 

 

 

 

 

 

 Profit for the year

-

-

-

274,178

43,025

317,203

Transactions with owners,

 

 

 

 

 

 

   recorded directly to equity:

 

 

 

 

 

 

 Ordinary dividends paid (note 7)

-

-

-

-

(36,697)

(36,697)

Buybacks of ordinary shares (held in treasury)

-

-

-

(26,622)

-

(26,622)

 

--------

---------

---------

---------------

---------

------------

Total equity at 31 December 2017

50,018

99,251

46,498

1,712,471

72,283

1,980,521

                 

 

Page 23 of 29

 

 

Consolidated and Individual Balance Sheet

As at 31 December 2018

 

Group

Company

Group

Company

 

31 December

31 December

31 December

31 December

 

2018

2018

2017

2017

 

£'000

£'000

£'000

£'000

Non current assets

 

 

 

 

Investments held at fair value through profit or loss

 

1,954,114

 

1,955,105

 

2,149,267

 

2,150,619

 

--------------

--------------

--------------

--------------

Current assets

 

 

 

 

Other receivables

8,198

8,664

5,217

5,077

Cash and cash equivalents

72,246

70,235

75,795

74,031

 

-----------

-----------

-----------

-----------

 

80,444

78,899

81,012

79,108

 

-----------

-----------

-----------

-----------

 

 

 

 

 

Total assets

2,034,558

2,034,004

2,230,279

2,229,727

 

---------------

---------------

---------------

---------------

Current liabilities

 

 

 

 

Other payables

(9,660)

(9,106)

(6,016)

(5,464)

Bank loans

(81,000)

(81,000)

(73,000)

(73,000)

 

----------

----------

----------

----------

 

(90,660)

(90,106)

(79,016)

(78,464)

 

----------

----------

----------

----------

Total assets less current liabilities

1,943,898

1,943,898

2,151,263

2,151,263

 

 

 

 

 

Non current liabilities

 

 

 

 

Other payables

(43)

(43)

(377)

(377)

Borrowings at amortised cost:

 

 

 

 

 6.125 per cent. Secured Bonds due 2025

(63,581)

(63,581)

(63,538)

(63,538)

 3.29 per cent. Secured Notes due 2035

(20,873)

(20,873)

(20,871)

(20,871)

 3.47 per cent. Secured Notes due 2045

(53,653)

(53,653)

(53,652)

(53,652)

 2.74 per cent. Secured Notes due 2054

(29,751)

(29,751)

(29,749)

(29,749)

 3.4 per cent. cumulative preference shares of £1

 

(2,055)

 

(2,055)

 

(2,055)

 

(2,055)

 2.7 per cent. cumulative preference shares of £1

 

(500)

 

(500)

 

(500)

 

(500)

 

----------

----------

----------

----------

 

(170,456)

(170,456)

(170,742)

(170,742)

 

----------

----------

----------

----------

Net assets

1,773,442

1,773,442

1,980,521

1,980,521

 

 

 

 

 

Equity attributable to equity holders

 

 

 

 

Ordinary share capital

50,018

50,018

50,018

50,018

Share premium account

99,251

99,251

99,251

99,251

Capital redemption reserve

46,498

46,498

46,498

46,498

Retained earnings:

 

 

 

 

  Other capital reserves

1,498,832

1,498,923

1,712,019

1,712,471

  Revenue reserve

78,843

78,752

72,735

72,283

 

----------

----------

----------

----------

Total equity

1,773,442

1,773,442

1,980,521

1,980,521

 

 

 

 

 

Net asset value per ordinary share

995.15p

995.15p

1109.85p

1109.85p

 

As permitted by section 408 of the Companies Act 2006, the Company has not presented its own income statement. The loss of the Company dealt with in the accounts of the Group amounted to £164,471,000 (2017: profit of £317,203,000).

Page 24 of 29

 

 

 

Group

Company

Group

Company

 

2018

2018

2017

2017

 

£'000

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Dividend income received

57,202

57,202

55,464

55,464

Interest received

203

198

29

28

Other income received

1,712

280

2,105

195

Operating expenses paid

(19,292)

(18,102)

(12,644)

 (11,096)

Taxation on overseas income

(3,102)

(3,102)

(3,014)

             (3,014)

Taxation recovered

271

271

412

412

 

----------

-----------

----------

-----------

Net cash inflow from operating activities

 

36,994

 

36,747

 

42,352

 

41,989

 

----------

-----------

----------

-----------

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Purchases of investments

        (801,410)

        (801,410)

(1,097,207)

(1,097,207)

Sales of investments

806,173

806,173

1,113,894

1,113,894

Realised (loss)/gain on futures

(1,258)

(1,258)

7,593

7,593

 

----------

-----------

----------

-----------

Net cash inflow from investing activities

 

3,505

 

3,505

 

24,280

 

24,280

 

----------

-----------

----------

-----------

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

Equity dividends paid

(40,090)

(40,090)

(36,697)

(36,697)

Issue of secured notes net of issue expenses

 

-

 

-

 

             29,748

 

29,748

Buybacks of ordinary shares

(2,564)

(2,564)

(27,413)

(27,413)

Interest paid

(8,311)

(8,311)

(7,345)

(7,345)

Drawdown of bank loans

8,000

8,000

2,000

2,000

 

----------

-----------

----------

-----------

Net cash outflow from financing activities

 

(42,965)

 

(42,965)

 

(39,707)

 

(39,707)

 

----------

-----------

----------

-----------

 

 

 

 

 

(Decrease)/increase in cash and cash equivalents

 

(2,466)

 

(2,713)

 

26,925

 

26,562

Cash and cash equivalents at the start of the period

 

75,795

 

74,031

 

50,556

 

49,155

Effect of foreign exchange rate changes

 

(1,083)

 

(1,083)

 

(1,686)

 

(1,686)

 

----------

-----------

----------

-----------

Cash and cash equivalents at the end of the period

 

72,246

 

70,235

 

75,795

 

 

74,031

 

Page 25 of 29

 

 

 

1.             Accounting policies

The financial statements of the Group have been prepared in accordance with International Financial Reporting Standards ('IFRSs') as adopted by the European Union and therefore the Group financial statements comply with Article 4 of the EU IAS Regulation. These comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee ('IASC') that remain in effect, to the extent that they have been adopted by the European Union.

 

These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Group operates.

 

(a) Basis of preparation

The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments. The principal accounting policies adopted are set out in the financial statements. Where presentational guidance set out in the Statement of Recommended Practice Financial Statements of Investment Trust Companies and Venture Capital Trusts ('the SORP') issued by the Association of Investment Companies ('the AIC') in November 2014 and updated in February 2018 with consequential amendments, is consistent with the requirements of IFRSs as adopted by the European Union, the directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP.

 

Judgements and sources of estimation uncertainty

In the application of the Group's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not always readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may vary from these estimates. The Directors do not consider that there are any such items in these financial statements.

 

(b) Going concern

The financial statements have been prepared on a going concern basis.  The Group's business activities, together with the factors likely to affect its future development and performance, are set out in the Strategic Report. The financial position of the Group as at 31 December 2018 is shown in the balance sheet on page 23. The cash flows of the Group for the year ended 31 December 2018 are not untypical and are set out on page 24.

 

(c) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entity controlled by the Company (its subsidiary) made up to 31 December each year.            

               

In accordance with IFRS 10 the Company has been designated as an investment entity on the basis that:      

- It obtains funds from investors and provides those investors with investment management services;           

- It commits to its investors that its business purpose is to invest solely for returns from capital appreciation and investment income; and               

- It measures and evaluates performance of substantially all of its investments on a fair value basis.

 

The subsidiary of the Company was established for the sole purpose of operating or supporting the investment operations of the Company, and is not itself an investment entity. Therefore, under the principles of IFRS 10, the Company has consolidated its subsidiary as it is a controlled entity that supports the investment activity of the investment entity.   

 

 

 

 

 

 

 

Page 26 of 29

 

WITAN INVESTMENT TRUST PLC

                Annual Financial Report for the year ended 31 December 2018

 

Notes to the Financial Statements continued

 

Control is achieved where the Company is exposed, or has the right, to variable returns from its investment in the subsidiary and has the ability to affect those returns through its power to direct the relevant activities. Where necessary, adjustments are made to the financial statements of the subsidiary to bring the accounting policies used by it into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.              

 

 (d) Presentation of the Statement of Comprehensive Income   

In order to better reflect the activities of an investment trust company, and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the Statement of Comprehensive Income. In accordance with the Company's Articles of Association, net capital returns may not be distributed by way of dividend. Additionally, the net revenue is the measure the directors believe appropriate in assessing the Group's compliance with certain requirements set out in section 1158 of the Corporation Tax Act 2010.

 

2.             Investment income

 

 

 

 

 

2018

2017

 

£'000

£'000

Franked:

 

 

UK dividends from listed investments

18,648

21,117

UK stock dividends from listed investments

-

43

UKspecial dividends from listed investments

1,660

1,040

 

-----------

-----------

 

20,308

22,200

 

-----------

-----------

Unfranked:

 

 

Overseas dividends from listed investments

36,726

30,161

Overseas special dividends from listed investments

1,074

683

Property income dividends

-

81

Stock dividends from listed investments

-

491

Fixed interest and convertible bonds

92

809

 

-----------

-----------

 

37,892

32,225

 

-----------

-----------

Total investment income

58,200

54,425

 

 

 

 

2018

2017

 

£'000

£'000

Analysis of investment income by geographical segment:

 

 

United Kingdom

20,308

22,200

North America

7,622

6,260

Continental Europe

11,644

15,290

Japan

2,269

2,145

Asia Pacific (ex Japan)

9,403

7,237

Latin America

230

                           536

Other

6,724

757

 

-----------

-----------

Total investment income

58,200

54,425

 

 

 

 

 

 

Page 27 of 29

 

Notes to the Financial Statements continued

 

3.             Other income

 

 

 

 

2018

2017

 

£'000

£'000

Deposit interest

214

41

Underwriting commission

-

4

Stock lending income

278

180

Income from the subsidiary company's third party business

1,084

1,093

 

-----------

-----------

 

1,576

1,318

 

4.             Management fees

 

 

Year ended 31 December 2018

Year ended 31 December 2017

 

Revenue

Capital

Total

Revenue

Capital

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Management fees

2,535

7,605

10,140

2,255

6,766

9,021

Performance fees

-

1,558

1,558

-

528

528

 

----------

-----------

-----------

----------

-----------

-----------

 

2,535

9,163

11,698

2,255

7,294

9,549

 

5.             Earnings per ordinary share

 

The earnings per ordinary share figure is based on the net loss for the year of £164,471,000 (2017: profit of £317,203,000) and on 178,265,167 ordinary shares (2017: 179,149,747), being the weighted average number of ordinary shares in issue during the year.

 

The earnings per ordinary share figure detailed above can be further analysed between revenue and capital, as below. The Company has no securities in issue that could dilute the return per ordinary share. Therefore the basic and diluted earnings per ordinary share are the same.

 

 

2018

2017

 

£'000

£'000

 

 

 

Net revenue profit

46,198

42,667

Net capital (loss)/profit

(210,669)

274,536

 

----------

----------

Net total (loss)/profit

(164,471)

317,203

 

 

 

Weighted average number of ordinary shares in issue during the year

178,265,167

179,149,747

 

 

 

 

Pence

Pence

Revenue earnings per ordinary share

25.92

23.82

Capital earnings per ordinary share

(118.18)

153.24

 

----------

----------

Total earnings per ordinary share

(92.26)

177.06

 

 

 

 

 

 

 

 

Page 28 of 29

 

Notes to the Financial Statements continued

 

6.            Issued share capital

 

The number of ordinary shares of 25p each in issue at 31 December 2018 was 200,071,000 (2017: 200,071,000), of which 21,861,632 ordinary shares of 25p each (2017: 21,621,411) were held in treasury.

 

 

7.             Dividends

 

 2018

£'000

2017

£'000

Amounts recognised as distributions to equity holders in the year:

 

 

Fourth interim dividend for the year ended 31 December 2017 of 6.75p (2016: 6.25p) per ordinary share

 

12,038

 

11,246

First interim dividend for the year ended 31 December 2018 of 5.25p (2017: 4.75p) per ordinary share

 

9,357

 

8,509

Second interim dividend for the year ended 31 December 2018 of 5.25p (2017: 4.75p) per ordinary share

 

9,357

 

8,485

Third interim dividend for the year ended 31 December 2018 of 5.25p (2017: 4.75p) per ordinary share

 

9,357

 

8,478

 

 

 

Refund of unclaimed dividends

(19)

(21)

 

----------

----------

 

40,090

36,697

 

======

======

 

 

 

Fourth interim dividend for the year ended 31 December 2018 of 7.75p (2017: 6.75p) per ordinary share

 

13,764

 

12,038

 

======

======

 

 

 

Total in respect of the year:

 

 

Set out below is the total dividend to be paid in respect of the year.  This is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010 are considered.

 

 

2018

£'000

2017

£'000

Revenue profits available for distribution (Company only)

46,559

43,025

First interim dividend for the year ended 31 December 2018 of 5.25p (2017: 4.75p) per ordinary share

 

(9,357)

 

(8,509)

Second interim dividend for the year ended 31 December 2018 of 5.25p (2017: 4.75p) per ordinary share

 

(9,357)

 

(8,485)

Third interim dividend for the year ended 31 December 2018 of 5.25p (2017: 4.75p) per ordinary share

 

(9,357)

 

(8,478)

Fourth interim dividend for the year ended 31 December 2018 of 7.75p (2017: 6.75p) per ordinary share

 

(13,764)

 

(12,038)

 

----------

----------

Revenue retained for the year (Company only)

4,724

5,515

 

======

======

 

8.         2018 Accounts

 

The figures and financial information for 2018 are extracted from the annual report and financial statements for the year ended 31 December 2018 and do not constitute the statutory accounts for the year.  The annual report and financial statements include the Report of the Independent Auditor which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.  The annual report and financial statements have not yet been delivered to the Registrar of Companies.

 

Page 29 of 29

 

 

Notes to the Financial Statements continued

 

9.         2017 Accounts

 

The figures and financial information for 2017 are extracted from the published annual report and financial statements for the year ended 31 December 2017 and do not constitute the statutory accounts for that year.  The annual report and financial statements have been delivered to the Registrar of Companies and included the Report of the Independent Auditor which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

 

10.          Annual report and financial statements

 

Copies of the annual report and financial statements will be posted to shareholders by the end of March 2019 and will be available on the Company's website (www.witan.com) or in hard copy format from the Registered Office, 14 Queen Anne's Gate, London, SW1H 9AA.

 

The Annual General Meeting will be held at 2.30 pm on Wednesday, 1 May 2019 at Merchant Taylors' Hall, 30 Threadneedle Street, London EC2R 8JB.

 

 

For further information please contact:

 

Andrew Bell

Chief Executive

Witan Investment Trust plc

Telephone:  020 7227 9770

 

Alexis Barling

Director of Marketing

Witan Investment Trust plc

Telephone:  020 7227 9770

 

- ENDS -

 

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) is incorporated into, or forms part of, this announcement.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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