NORTH ATLANTIC SMALLER COMPANIES INVESTMENT TRUST PLC North Atlantic Smaller Companies Investment Trust plc
Annual Report
for the year ended 31 January 2023
contents
1 | |
strategic report | 2-22 |
2 | |
3 | |
4 | |
6 | |
8 | |
9 | |
unquoted investments profile | 10 |
23 | |
statement of directors' responsibilities in respect | |
27 | |
29 | |
35 | |
41 | |
48 | |
49 | |
50 | |
51 | |
52 | |
78 | |
79 |
Company Registered Number: 1091347
Front Cover: 'The Battle of Vigo Bay, 12 October 1702' (Ludolf Backhuysen)
© National Maritime Museum, Greenwich, London, Caird Collection
north atlantic smaller companies investment trust plc
objective of the company and financial highlights
The objective of the Company is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean.
31 January | 31 January | 31 January | 31 January | 31 January | ||
2023 | % change | 2022 | 2021 | 2020 | 2019 | |
return | ||||||
Return for the year (£'000) | (91,038) | (240.3%) | 64,906 | 130,078 | 98,852 | 35,418 |
Basic and Diluted return per 5p Ordinary Share:* | ||||||
- Revenue | 32.65 | 228.5% | 9.94 | 3.76 | 41.24 | 40.58 |
- Capital | (699.41) | (253.3%) | 456.30 | 916.57 | 652.92 | 205.57 |
Dividend per 5p Ordinary Share (declared) | 22.0p | nil | nil | 30.0p | 30.0p | |
assets | ||||||
Net assets (£'000) | 693,356 | (12.2%) | 789,466 | 742,230 | 620,723 | 531,425 |
Net asset value ("NAV") per 5p Ordinary Share:** | ||||||
Basic | 5,097p | (11.8%) | 5,779p | 5,292p | 4,384p | 3,710p |
Diluted | 5,097p | (11.8%) | 5,779p | 5,292p | 4,384p | 3,708p |
Basic adjusted† | 5,236p | (10.6%) | 5,856p | 5,355p | 4,505p | 3,776p |
Diluted adjusted† | 5,236p | (10.6%) | 5,856p | 5,355p | 4,505p | 3,774p |
Mid-market price of the 5p Ordinary Shares | 3,900p | (9.9%) | 4,330p | 3,850p | 3,400p | 2,910p |
discount to diluted net asset value | 23.5% | 25.1% | 27.2% | 22.4% | 21.5% | |
discount to diluted adjusted net asset value | 25.5% | 26.1% | 28.1% | 24.5% | 22.9% | |
indices and exchange rates at 31 January | ||||||
Standard & Poor's 500 Composite Index | 4,076.6 | (9.7%) | 4,515.6 | 3,714.2 | 3,225.5 | 2,704.1 |
Russell 2000 Index | 1,931.9 | (4.8%) | 2,028.5 | 2,073.6 | 1,614.1 | 1,499.4 |
US Dollar/Sterling exchange rate | 1.23065 | (8.3%) | 1.34180 | 1.37295 | 1.31830 | 1.31505 |
Standard & Poor's 500 Composite Index - Sterling | ||||||
adjusted | 3,307.3 | (1.6%) | 3,360.5 | 2,709.5 | 2,442.5 | 2,062.8 |
Russell 2000 - Sterling adjusted | 1,567.4 | 3.8% | 1,509.6 | 1,512.7 | 1,222.2 | 1,143.8 |
- Please refer to note 7 for details on how the basic return per 5p Ordinary Share is calculated.
- Please refer to note 7 for details on how the net asset value per 5p Ordinary Share is calculated.
- Adjusted to reflect Oryx International Growth Fund Limited ("Oryx") under the equity method of accounting, which is how the Company previously accounted for its share of Oryx, prior to the adoption of IFRS 10. This is useful to the shareholder as it shows the NAV based on valuing Oryx at NAV. See note 7.
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north atlantic smaller companies investment trust plc
strategic report - corporate summary
introduction | North Atlantic Smaller Companies Investment Trust plc ("NASCIT") is an investment trust, the |
shares of which are listed on the London Stock Exchange. | |
objective and | The objective of the Company is to provide capital appreciation through investment in a portfolio of |
investment strategy | smaller companies principally based in countries bordering the North Atlantic Ocean. The |
Company invests in both listed and unquoted companies. | |
company's business | The Company is an investment company within the meaning of Section 833 of the Companies Act |
2006 and its business is that of an investment trust. | |
risk | Investment in small companies is generally perceived to carry a greater risk than investment in large |
companies. This is reasonable when comparing individual companies, but is much less so when | |
comparing the volatility of returns from a diversified portfolio of companies. The Board believe that | |
the Company's portfolio is diversified although considerably less liquid than a portfolio of large-cap | |
listed equities. | |
The Company has the ability to utilise gearing in the form of term loan facilities, although no | |
facility currently exists. Gearing has the effect of accentuating market falls and gains. | |
The Company outsources all of its main operational activities to recognised third party providers. | |
AIFMD | The Company is authorised and regulated by the Financial Conduct Authority. The Company has |
been a full scope internally managed AIF with effect from 1 October 2021 under the Alternative | |
Investment Fund Managers Regulations 2013. For further information see page 21. | |
company secretary | The Company Secretary is Kin Company Secretarial Limited, Hyde Park House, 5 Manfred Road, |
London SW15 2RS. | |
website | www.nascit.co.uk |
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north atlantic smaller companies investment trust plc
strategic report - directors
Sir Charles Wake ¹ Non-Executive Chairman. Appointed 27 June 2018 and became Chairman on 25 February 2022. Started as a management trainee with Whitbread's in 1972 and left in 1980. Since then he has been a director of various companies including sheet metal engineers, motor retailers, off-licences, pubs, bonded warehouses, farming and healthcare. He was chairman of St Andrew's Healthcare from 2004-2014 having been on the board since 1991.
Christopher H B Mills Chief Executive and Investment Manager. Appointed January 1984. He is Chief Investment Officer of Harwood Capital LLP. In addition, he is a non-executive director of numerous UK companies which are either now or have in the past five years been publicly quoted, further details of which are included in note 15 of the financial statements.
The Lord Howard of Rising ¹²³ Non-Executive Director. Appointed November 2015. He is a member of the House of Lords and a District Councillor for the Borough Council of Kings Lynn & West Norfolk, as well as being a landowner and farmer. He was formerly a director of The Keep Trust and Fortress Trust.
G Walter Loewenbaum (USA) ¹²³ Non-Executive Director. Appointed on 31 October 2017. As an investment banker and private equity investor, Mr Loewenbaum has worked with multiple companies in a variety of different industries at different phases of organisational development, ranging from startup to publicly traded. He brings a depth of knowledge in serving as chairman for public and private companies, building stockholder value and capital market considerations.
Peregrine D E M Moncreiffe Non-Executive Director. Appointed November 2008 (having previously been a Director of the Company from 1993-2006) and served as Chairman from June 2009 until 25 February 2022. He has over the years worked in London, New York and the Far East, with Credit Suisse First Boston, Lehman Brothers and Buchanan Partners. In April 2021 he was appointed as non-executive Chairman of Arix Bioscience plc.
Professor Fiona Gilbert ¹²³ Non-Executive Director. Appointed 6 September 2022. She is Professor of Radiology and Head of the Department at the University of Cambridge. Professor Gilbert leads a team of researchers in various fields of radiology assessing new imaging technologies and has over 250 scientific publications and over £20M in research income. She works in the NHS as an honorary consultant with expertise in musculoskeletal and breast imaging. She holds non-executive positions on several boards in private companies.
- Independent
- Member of the Audit Committee
- Member of the Remuneration Committee
3
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North Atlantic Smaller Companies Investment Trust plc published this content on 22 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2023 14:02:56 UTC.
