LONDON AND ST. LAWRENCE INVESTMENT CO.
6 November 2016
This announcement contains regulated information
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
31 August 2016 31 August 2015
% Change % Change
Revenue return per ordinary share +5.6% +4.1%
Dividends per ordinary share +3.5% +5.1%
Total Returns:
Net asset value per ordinary share ("NAV") +5.2% -0.5%
FTSE All-Share Index +7.6% -5.6%
Ordinary share price -4.0% -4.0%
MANAGEMENT REPORT
Chairman's Statement
For the year ended 31 August 2016, London & St Lawrence's revenue return per
share increased by 5.6%, the dividend was increased by 3.5% and the net asset
value total return increased by 5.2%.
Performance for the year to 31 August 2015
Earnings and dividends
Revenue return per share was 15.38p, an increase of 5.6%. Three quarterly
dividends of 3.5p net per share were paid in February, May and August, and a
fourth quarterly dividend of 4.3p net per share will be paid on 6 December
2016, making a total dividend of 14.8p net per share, an increase of 3.5%.
Net asset value total return
London & St Lawrence's net asset value total return per ordinary share
increased by 5.2% which compares with a decrease of -0.5% in the previous
year. The FTSE All-Share produced a positive total return of 7.6%.
As at 31 August 2016 London & St Lawrence's share price was at a discount of
9.8% to net asset value. A year ago the share price was at a discount of
1.2%.
Performance for the five years to 31 August 2016
Earnings and dividends
The Company's annual dividend has grown by 26.5% over the last five years from
11.7p to 14.8p per share.
Net asset value total return
Shareholders' net asset value total return has increased by 36.8% over the last
five years, which compares with a increase of 32.0% for the FTSE All-Share
Index.
Expenses
The Ongoing Charges, which is the investment management fee and other non
interest expenses as a percentage of shareholders' funds, was 0.69% (2015
0.75%).
- 2 -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
MANAGEMENT REPORT (continued)
Principal Risks and Uncertainties
The main risks arising from the Group's activities are market risk, interest
rate risk and foreign currency risk. The Board regularly reviews and agrees
policies for managing each of these risks and they are summarised below. These
policies have remained unchanged throughout the period under review.
Market Price Risk
Market risk arises mainly from uncertainty about future prices of financial
instruments used in the Group's operations. It represents the potential loss
the Group might suffer through holding market positions in the face of price
movements.
It is the Board's policy to hold an appropriate spread of investments in the
portfolio in order to reduce both the statistical risk and the risk arising
from factors specific to a particular sector. Market prices are actively
monitored throughout the year and the Board meets regularly in order to
consider investment strategy.
Cash Flow Interest Rate Risk
Cash flow interest rate risk is the risk that the future cash flows of a
financial instrument will fluctuate because of changes in market interest
rates. The Group's exposure to cash flow interest rate risk is primarily
through the cash balances held which earn interest by reference to LIBOR or an
international equivalent.
Liquidity Risk
The Group's assets comprise mainly of readily realisable securities which can
be sold to meet future funding commitments if necessary.
Foreign Currency Risk
The Group's total return and net assets are not significantly affected by
currency translation movements as the majority of the Group's assets and
revenue are denominated in sterling.
Statement of Directors' Responsibilities
In accordance with Disclosure and Transparency Rule 4.1.12, the directors
state, to the best of their knowledge, that:
? the financial statements, prepared in accordance with IFRSs give a true and
fair view of the assets, liabilities, financial position and net return of the
Company and the undertakings included in the Consolidation; and
? the Report of the Directors includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the Consolidation together with a description of the
principal risks and uncertainties that it faces.
Signed on behalf of the Board of directors
P.J.C. Ashfield
Chairman
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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
Top 20 Investments
as at 31 August 2016
The 20 largest investments, representing 66.4% (2015 65.2%) of the portfolio
(convertibles and all classes of equity in any one company being treated as one
investment), are listed below. In accordance with the UKLA Listing Rules, the
comparative value as at 31 August 2015 is provided. Market values reflect
changes in the value of underlying shares and portfolio changes.
Market Market
Value Value
2016 2015
£'000 £'000
Consistent Unit Trust 12,925 12,279
Edinburgh Investment Trust 5,198 4,763
Aberforth Geared Income 4,989 5,441
City of London Investment 4,156 3,938
Trust
Dunedin Income Growth Trust 3,617 3,044
Merchants Trust 3,593 3,388
Law Debenture Corporation 3,575 3,302
Mercantile Trust 3,354 3,184
Blackrock Income Strategies 3,102 3,591
British Land 2,981 ---
Invesco Income Growth 2,858 2,918
Henderson Far East Income 2,571 1,786
Scottish Mortgage & Trust 2,398 2,049
Perpetual Income and Growth 2,362 2,366
Standard Life Equity Income
2,355 2,807
Investors Capital Trust 2,154 2,076
F & C Private Equity 2,148 ---
Scottish American
2,091 1,712
Securities Trust of Scotland 2,055 1,784
Witan Investment Trust 2,054 2,844
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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
Consolidated Income Statement
for the year ended 31 August 2016
Year ended 31 August 2016 Year ended 31 August 2015
Revenue Capital Total Revenue Capital
Return £ Return £ £'000 Return Return £ Total £
'000 '000 £'000 '000 '000
Profit on investments held at
fair value through profit or - 5,396 5,396 - (502) (502)
loss
Income from investments held at
fair value through profit or 4,500 - 4,500 4,151 - 4,151
loss (note 2)
Other operating income (note 2) 875 - 1,125 -
875 1,125
-------- --------- --------- -------- --------- ---------
Gross revenue and capital gains 5,375 5,396 10,771 5,276 (502) 4,774
/(losses)
Expenses (731) (124) (855) (786) (95) (881)
-------- --------- --------- -------- --------- ---------
Net return/(loss) on ordinary
activities before finance 4,644 5,272 9,916 4,490 (597) 3,893
charges and taxation
Finance charges (14) - (14) (14) - (14)
-------- --------- --------- -------- --------- ---------
Net return/(loss) on ordinary
activities before taxation 4,630 5,272 9,902 4,476 (597) 3,879
Taxation on net return/(loss)
on ordinary activities (177) - (261) -
(177) (261)
-------- --------- --------- -------- --------- ---------
Net return/(loss) on ordinary
activities after taxation 4,453 5,272 9,725 4,215 (597) 3,618
===== ===== ===== ===== ===== =====
Return/(loss) per ordinary
share 15.38p 18.21p 33.59p 14.56p (2.06)p 12.50p
- basic and diluted (note 3)
===== ===== ===== ===== ===== =====
The total columns of this statement represent the consolidated income statement
of the Group. All revenue and capital items derive from continuing operations.
No operations were acquired or discontinued during the year.
The Group has no recognised gains or losses other than those recognised in the
Income Statement.
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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
Consolidated Statement of Changes in Shareholders' Funds
for the years ended 31 August 2016 and 31 August 2015
Called up Capital Share Other Revenue Total
share Redemption premium capital reserve
capital Reserve account reserves
Year ended 31 August 2016 £'000 £'000 £'000 £'000 £'000 £'000
At 31 August 2015 1,447 204 21,033 79,126 3,265 105,075
Net return/(loss) on ordinary
activities after taxation - - - 5,272 4,453 9,725
First quarter dividend (3.5p) for
the year ended 31 August 2016 - - - - (1,013) (1,013)
paid 29 February 2016
Second quarter dividend (3.5p)
for the year ended 31 August 2016 - - - - (1,013) (1,013)
paid 31 May 2016
Third quarter dividend (3.5p) for
the year ended 31 August 2016 - - - - (1,013) (1,013)
paid 31 August 2016
Fourth quarter dividend (4.3p)
for the year ended 31 August 2016 (1,246) (1,246)
will be paid 6 December 2016 - - - -
--------- ------ --------- --------- --------- ---------
At 31 August 2016 1,447 204 21,033 84,398 3,433 110,515
===== ==== ===== ===== ===== =====
Called up Capital Share Other Revenue Total
share Redemption premium capital reserve
capital Reserve account reserves
Year ended 31 August 2015 £'000 £'000 £'000 £'000 £'000 £'000
At 31 August 2014 1,447 204 21,033 79,723 3,188 105,595
Net return/(loss) on ordinary
activities after taxation - - - (596) 4,215 3,619
First quarter dividend (3.4p) for
the year ended 31 August 2015 - - - - (984) (984)
paid 27 February 2015
Second quarter dividend (3.4p)
for the year ended 31 August 2015 - - - - (984) (984)
paid 29 May 2015
Third quarter dividend (3.4p) for
the year ended 31 August 2015 - - - - (984) (984)
paid 28 August 2015
Fourth quarter dividend (4.1p)
for the year ended 31 August 2015 - - - - (1,187) (1,187)
paid 1 December 2015
--------- ------ --------- --------- --------- ---------
At 31 August 2015 1,447 204 21,033 79,127 3,264 105,075
===== === ===== ====== ===== ======
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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
Consolidated Statement of Financial Position
at 31 August 2016
2016 2015
£'000 £'000
Non-Current Assets
Investments held at fair value through profit 106,589 101,186
or loss
Intangible assets 2,160 2,160
---------- ----------
108,749 103,346
---------- ----------
Current assets
Debtors 785 887
Cash and cash equivalent 2,781 2,776
---------- ----------
3,566 3,663
---------- ----------
Creditors: amounts falling due within one year (1,520) (1,654)
---------- ----------
Net current assets 2,046 2,009
---------- ----------
Total assets less current liabilities 110,795 105,355
Preference Share Capital (280) (280)
---------- ----------
Total net assets 110,515 105,075
====== ======
Capital and reserves
Called up share capital 1,447 1,447
Share premium account 21,033 21,033
Capital redemption reserve 204 204
Other capital reserves 84,398 79,126
Revenue reserves 3,433 3,265
---------- ----------
Shareholders' funds 110,515 105,075
====== ======
Net asset value per ordinary share (note 5) 381.76p 362.97p
====== ======
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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
Consolidated Cash Flow Statement
for the year ended 31 August 2016
Year ended Year ended
31 August 2016 31 August 2015
£'000 £'000 £'000 £'000
Profit before finance costs and tax 4,644 4,490
Decrease/(increase) in receivables 97 1,343
(Decrease)/increase in payables (70) (1,231)
------- -------
Cash generated from operating 4,671 4,602
activities
Taxation paid (267) (299)
-------- --------
Net cash generated from operating 4,404 4,303
activities
Cash flows from investing activities
Purchases of investments held at fair (11,855) (8,777)
value
Sales of investments held at fair 11,697 8,914
value
Net cash generated from investing ---------- (158) ---------- 137
activities
Cash flows from financing activities
Dividends paid on ordinary shares (4,227) (4,111)
Dividends paid on preference shares (14) (14)
Issue of new ordinary shares --- ---
Net cash used in financing activities --------- (4,241) ---------
(4,125)
--------- ---------
Net increase/(decrease) in cash and
cash equivalents 5 315
Cash and cash equivalents at 2,776 2,461
beginning of year
--------- ---------
Cash and cash equivalents at end of 2,781 2,776
year
===== =====
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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2016
Notes to the Accounts :
1. Accounting Policies
Basis of accounting
The accounts have been prepared on the basis of the accounting policies used
for the Company's accounts for the year ended 31 August 2016.
The accounts are prepared in accordance with IFRS and with the Revised
Statement of Recommended Practice - "Financial Statements of Investment
Trust Companies" dated January 2009 (the "Revised SORP"). All of the
Company's operations are of a continuing nature.
2. Income from investments held at fair value through profit or loss
2016 2015
£'000 £'000
Investment income
Dividends UK 3,642 3,211
Dividends Overseas 16 13
Interest on fixed income securities 837 927
Deposit interest 5 4
Unit trust management fee 875 1,121
--------- ---------
5,375 5,276
--------- ---------
3. Return/(loss) per ordinary share - basic
The return per ordinary share is based on the net return attributable to the
ordinary shares of £9,724,588 (year ended 31 August 2015: £3,618,991) and on
28,948,944 ordinary shares (year ended 31 August 2015: 28,948,944) being the
weighted average number of ordinary shares in issue during the year.
The return per ordinary share can be further analysed between revenue and
capital, as below.
Year ended Year ended
31 August 2016 31 August 2015
£'000 £'000
Net revenue return 4,453 4,216
Net capital return/(loss) 5,272 (597)
------------ ------------
Net total return/(loss) 9,725 3,619
======= =======
Weighted average number of
ordinary shares in issue during 28,948,944 28,948,944
the year
Revenue return per ordinary share 15.38p 14.56p
Capital return/(loss) per ordinary 18.21p (2.06)p
share
--------- ---------
Total return/(loss) per ordinary 33.59p 12.50p
share
===== =====
The Company does not have any
dilutive securities.
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LONDON & ST LAWRENCE INVESTMENT COMPANY PLC
Annual Financial Report for the year ended 31 August 2015
Notes to the Accounts (continued) :
4. Net asset value per ordinary share
The net asset value per ordinary share is based on the net assets
attributable to the ordinary shares of £110,515,033 (2015: £105,074,889)
and on 28,948,944 (2015: 28,948,944) shares in issue on 31 August 2016.
5. Issued share capital
There were 28,948,944 ordinary shares of 5p in issue at 31 August 2016
(31 August 2015: 28,948,944) for the purpose of calculating the net asset
value per ordinary share.
2016 Accounts
The figures and financial information for the year ended 31 August 2016 were
compiled from an extract of the latest accounts and do not constitute statutory
accounts. These accounts included the report of the auditors which was
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006. The accounts have not yet been
delivered to the Registrar of Companies.
2015 Accounts
The figures and financial information for the year ended 31 August 2015 were
compiled from an extract of 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 auditors which was
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006.
Annual Report
The Annual Report and Accounts will be posted to shareholders on 6 November
2016 and will be available on the Company's website (
www.londonandstlawrence.com) or in hard copy format from the Company's office,
Fair Lorna House, Buckingham Road, Singleborough, Milton Keynes, MK17 0RB.
For further information please contact:
Jenny Sculley,
London & St Lawrence Investment Company plc
01296 711598
jsculley@btconnect.com
- ENDS -
LONDON & ST LAWRENCE INVESTMENT COMPANY PLC : - Annual Financial Report
November 11, 2016 at 04:07 am EST
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