Fidelity Special Values Plc - Half-year Report
Half-Yearly Results for the six months ended
Financial Highlights:
-- The Board of Fidelity Special Values PLC (the “Company”) recommends an
interim dividend of 3.24 pence per share, an increase of 28.1% from last
year’s interim dividend.
-- During the six months ended 29 February 2024 , the Company reported a Net
Asset Value (NAV) of +4.0% and ordinary share price total return of
+4.8%.
-- The Benchmark, the FTSE All-Share Index, had a total return of +3.9%
over the same period.
-- Mergers and acquisitions activity contributed to performance with five
of the top ten contributors to performance attracting bids.
Contacts
For further information, please contact:
Company Secretary
01737 836347
Portfolio Manager’s Half-Yearly Review
Performance
In the six month reporting period to
Stock Market and Portfolio Review
From a sector perspective, market gains were led by technology, industrials and consumer discretionary, while basic materials and consumer staples were the biggest detractors. While both the value and growth segments showed gains, the technology-led rally from November meant that growth outperformed over the period. Similarly, small cap stocks rebounded strongly following two years of significant underperformance.
The period started with
However, equities started off 2024 on a weak note. This shift was underpinned by investors recalibrating their expectations for imminent and substantial interest rate cuts by major central banks. A desire for firmer evidence that inflation was under control and the lack of commitment on the timing of rate adjustments by central banks contributed to an atmosphere of uncertainty among market participants. Meanwhile, geopolitical concerns remained centre stage as a result of disruption of commercial shipping in the
Economic indicators in the
Over the period, the Company’s NAV marginally outperformed its Benchmark. Irish support services group DCC was the leading contributor as its shares benefited from an improving outlook, delivering on ambitious new targets for its energy division. Its aim to evolve its strategy towards lower carbon energy solutions was underlined by its acquisition of
Mergers and acquisitions (“M&A”) activity continued to be a significant performance driver during the period with five of the top ten contributors attracting bids, or becoming subject to takeover speculation. Smart Metering Systems agreed to a £1.3 billion deal from US private equity firm KKR (Kohlberg Kravis Roberts) while ten-pin bowling operator
Conversely, the holding in Swiss pharmaceuticals group
Shares in merchant banking group Close Brothers declined sharply after the
Industrial threads maker Coats Group was another detractor. The company has seen a decline in trading revenues, but there are signs of a gradual recovery, while its balance sheet and cash generation remain strong. Elsewhere, Victrex was weighed down by weakness across the chemical sector.
Meanwhile, shares in health and beauty products company PZ Cussons fell following the devaluation of Nigeria’s currency, the naira, before the company’s results announcement in February and this led to a reduction in its dividend and a paring back of profit forecasts. The company counts
Use of gearing
During the review period, we continued to use contracts for difference to gear the portfolio’s long exposure and eliminate some of the currency exposure for those holdings listed outside the
Outlook
While there continues to be a degree of economic and geopolitical uncertainty, the attractiveness of
While the value in the
From a portfolio perspective, we remain disciplined, taking profits in stocks that have performed well and where the risk/reward is no longer as attractive. We are particularly wary of stocks where fundamentals and margins have been strong, and a deterioration is not priced in. A stock we sold after strong returns was Marks & Spencer, where we felt the investment thesis had played out. The stock had doubled having taken market share in the clothing, home and food segments which had benefited from the exit of the likes of New Look, Arcadia and
Conversely, we have been on the lookout for companies that have seen their earnings rebased and which trade on low valuations with limited downside and the potential for significant upside once the environment normalises. We have been finding new ideas in cyclical areas such as industrials, media, and staffing and adding back into some
Overall, we continue to see potential for attractive returns given the upside/downside profile of our portfolio. We are encouraged by the performance of our holdings in the recent reporting season. We have seen a strong full year 2023 reporting season, and in particular excellent results from some of our financials positions. With the exception of high-end and big-ticket consumer goods, where spend is under pressure, generally the results season has painted a fairly robust economic picture, with things actually starting to look more positive in most areas into the fourth quarter of 2023 and first quarter of 2024, compared to 2023 as a whole. The one exception is
Portfolio Manager
Twenty Largest Investments as at
The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, bonds and derivative instruments. The Fair Value is the actual value of the portfolio as reported in the Balance Sheet. Where a contract for difference (“CFD”) is held, the Fair Value reflects the profit or loss on the contract since it was opened and is based on how much the share price of the underlying share has moved.
Asset Exposure Fair Value
£’000 %1 £’000
Long Exposures – shares unless
otherwise stated
AIB Group (corporate bond and
long CFD)
Banks 46,005 4.8 16,597
--------------- --------------- ---------------
DCC
Industrial Support Services 44,061 4.5 44,061
--------------- --------------- ---------------
Imperial Brands
Tobacco 36,957 3.8 36,957
--------------- --------------- ---------------
Ryanair Holdings (shares and
long CFD)
Travel & Leisure 33,616 3.5 4,371
--------------- --------------- ---------------
Roche Holdings
Pharmaceuticals & Biotechnology 32,947 3.4 32,947
--------------- --------------- ---------------
Aviva
Life Insurance 32,725 3.4 32,725
--------------- --------------- ---------------
Mitie Group
Industrial Support Services 26,649 2.8 26,649
--------------- --------------- ---------------
GSK
Pharmaceuticals & Biotechnology 26,453 2.7 26,453
--------------- --------------- ---------------
Babcock International Group
Aerospace & Defense 23,265 2.4 23,265
--------------- --------------- ---------------
Coats Group
General Industrials 22,821 2.4 22,821
--------------- --------------- ---------------
NatWest Group
Banks 22,636 2.3 22,636
--------------- --------------- ---------------
Glenveagh Properties (shares and
long CFDs)
Household Goods & Home 22,586 2.3 19,458
Construction
--------------- --------------- ---------------
Standard Chartered
Banks 21,453 2.2 21,453
--------------- --------------- ---------------
Direct Line Insurance Group
Non-Life Insurance 19,414 2.0 19,414
--------------- --------------- ---------------
Spire Healthcare Group
Health Care Providers 19,389 2.0 19,389
--------------- --------------- ---------------
Keller Group (shares and long
CFD)
Construction & Materials 19,326 2.0 13,011
--------------- --------------- ---------------
OMV
Oil, Gas & Coal 19,027 2.0 19,027
--------------- --------------- ---------------
Phoenix Group Holdings
Life Insurance 19,021 2.0 19,021
--------------- --------------- ---------------
Conduit Holdings
Non-Life Insurance 18,572 1.9 18,572
--------------- --------------- ---------------
Reckitt Benckiser Group
Personal Care, Drug & Grocery 17,718 1.8 17,718
Stores
--------------- --------------- ---------------
Twenty largest long exposures 524,641 54.2 456,545
Other long exposures 500,540 51.7 456,686
--------------- --------------- ---------------
Gross Asset Exposure (96 1,025,181 105.9
holdings)
========= =========
Portfolio Fair Value 913,231
=========
1 Asset Exposure is expressed as a percentage of Shareholders’ Funds.
Fair Value and Asset Exposure of Investments as at
Asset Exposure
Fair Value
£’000 £’000 %1
Investments 912,136 912,136 94.2
Long CFDs 1,095 113,045 11.7
--------------- --------------- ---------------
913,231 1,025,181 105.9
========= ========= =========
Cash at bank2 66 (111,884) (11.6)
Bank overdraft (5,260) (5,260) (0.5)
Fidelity Institutional Liquidity 55,114 55,114 5.7
Fund
Other net current assets
(excluding derivative assets and 5,252 5,252 0.5
liabilities)
--------------- --------------- ---------------
Shareholders’ Funds 968,403 968,403 100.0
========= ========= =========
The Company uses gearing through the use of long CFD positions. Gross gearing as at
1 Asset Exposure is expressed as a percentage of Shareholders’ Funds.
2 The asset exposure column for cash at bank has been adjusted to assume the Company traded direct holdings rather than exposure being gained through long CFD positions. The amount is derived by taking the cost of the shares underlying the long CFDs when the contracts were opened less the cash at bank balance at the period end.
Interim Management Report and Directors’ Responsibility Statement
Board Changes
Interim Dividend
Dividends are an important component of long-term returns and the Board’s policy is to pay dividends twice yearly in order to smooth the dividend payments for the Company’s financial year.
The Company’s revenue return for the six months to
The Board has declared an interim dividend of
Discount Management and Share Repurchases
Investment trust discounts continue to remain wide and the Company has not been immune to this trend. As at
The Board continues to monitor the level of the Company’s discount closely and will take action when it believes to do so will be effective and to the benefit of shareholders.
Principal Risks and Uncertainties
The Board, with the assistance of the Manager (
The Board considers that the principal risks and uncertainties faced by the Company continue to fall into the following categories: market, economic and political; investment performance (including the use of derivatives and gearing); cybercrime and information security; environmental, social and governance (“ESG”); competition; business continuity; key person and operational support; discount control regulatory risks. Information on each of these risks is given on pages 23 to 25 in the Strategic Report section of the Annual Report for the year ended
While the principal risks and uncertainties are the same as those at the last year end, the uncertainty continues to be heightened by the global implications of the ongoing
Climate change continues to be a key principal risk, that is confronting asset managers and their investors. Globally, climate change effects are already being experienced in the form of changing weather patterns. Climate change patterns can potentially impact the operations of investee companies, their supply chains and their customers. Additional risks may also arise from increased regulations, increased costs and net-zero programmes which can all impact investment returns. The Board notes that the Manager has integrated ESG considerations, including climate change, into the Company’s investment process. The Board will continue to monitor how this may impact the Company as a risk, the main risk being the impact on investment valuations and shareholder returns.
Investors should be prepared for market fluctuations and remember that holding shares in the Company should be considered to be a long-term investment. Risks are somewhat mitigated by the investment trust structure of the Company which means that no forced sales need to take place to deal with any redemptions. Therefore, investments in the Company’s portfolio can be held over a longer time horizon.
The Manager has appropriate business continuity and operational plans in place to ensure the uninterrupted provision of services. This includes investment team key activities which also covers portfolio managers, analysts and trading/support functions. The Manager reviews its operational resilience strategies on an ongoing basis and continues to take all reasonable steps in meeting its regulatory obligations, assess its ability to continue operating and the steps it needs to take to serve and support its clients, including the Board. It has an appropriate control environment in place.
The Company’s other third-party service providers also have similar measures to ensure that business disruption is kept to a minimum.
Transactions with the Manager and Related Parties
The Manager has delegated the Company’s portfolio management and company secretariat services to
Going Concern Statement
The Directors have considered the Company’s investment objective, risk management policies, liquidity risk, credit risk, capital management policies and procedures, the nature of its portfolio, its expenditure and cash flow projections. The Directors, having considered the liquidity of the Company’s portfolio of investments (being mainly securities which are readily realisable) and the projected income and expenditure, are satisfied that the Company is financially sound and has adequate resources to meet all of its liabilities and ongoing expenses and can continue in operational existence for a period of at least
twelve months from the date of this Half-Yearly Report.
This conclusion also takes into account the Board’s assessment of the ongoing risks as outlined above.
Accordingly, the Financial Statements of the Company have been prepared on a going concern basis.
Continuation votes are held every three years and the next continuation vote will be put to shareholders at the AGM in 2025.
By Order of the Board
Directors’ Responsibility Statement
The Disclosure and Transparency Rules (“DTR”) of the
The Directors confirm to the best of their knowledge that:
a) the condensed set of Financial Statements contained within the Half-Yearly Report has been prepared in accordance with the Financial Reporting Council’s Standard: FRS 104: Interim Financial Reporting; and
b) the Portfolio Manager’s Half-Yearly Review and the Interim Management Report above, include a fair review of the information required by DTR 4.2.7R and 4.2.8R.
In line with previous years, the Half-Yearly Report has not been audited by the Company’s Independent Auditor.
The Half-Yearly Report was approved by the Board on
Financial Statements
Income Statement for the six months ended
Six months ended 29 February 2024 Year ended 31 August 2023 Six months ended 28 February 2023
unaudited audited unaudited
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Gains/
(losses) on – 20,869 20,869 – (12,021) (12,021) – 52,800 52,800
investments
Gains on – 5,742 5,742 – 35,770 35,770 – 34,556 34,556
long CFDs
Investment
and 4 15,462 – 15,462 43,717 – 43,717 13,700 – 13,700
derivative
income
Other 4 1,861 – 1,861 2,971 – 2,971 1,438 – 1,438
interest
Investment
management 5 (2,863) – (2,863) (5,698) – (5,698) (2,806) – (2,806)
fees
Other (468) – (468) (948) – (948) (459) – (459)
expenses
Foreign
exchange – 220 220 – (4,032) (4,032) – (2,131) (2,131)
gains/
(losses)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return
on ordinary
activities
before 13,992 26,831 40,823 40,042 19,717 59,759 11,873 85,225 97,098
finance
costs and
taxation
Finance 6 (2,994) – (2,994) (4,774) – (4,774) (1,996) – (1,996)
costs
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return
on ordinary
activities 10,998 26,831 37,829 35,268 19,717 54,985 9,877 85,225 95,102
before
taxation
Taxation on
return on 7 (154) – (154) (672) – (672) (8) – (8)
ordinary
activities
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return
on ordinary
activities
after 10,844 26,831 37,675 34,596 19,717 54,313 9,869 85,225 95,094
taxation
for the
period
========= ========= ========= ========= ========= ========= ========= ========= =========
Return per
ordinary 8 3.34p 8.28p 11.62p 10.67p 6.08p 16.75p 3.04p 26.30p 29.34p
share
========= ========= ========= ========= ========= ========= ========= ========= =========
The Company does not have any other comprehensive income. Accordingly, the net return on ordinary activities after taxation for the period is also the total comprehensive income for the period and no separate Statement of Comprehensive Income has been presented.
The total column of this statement represents the Income Statement of the Company. The revenue and capital columns are supplementary and presented for information purposes as recommended by the Statement of Recommended Practice issued by the AIC.
No operations were acquired or discontinued in the period and all items in the above statement derive from continuing operations.
Statement of Changes in Equity for the six months ended
Share Capital Other non- Total
Share premium redemption distributable Capital Revenue shareholders’
capital account reserve reserve reserve reserve funds
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000
Six months
ended 29
February 2024
(unaudited)
Total
shareholders’ 16,205 238,442 3,256 5,152 648,795 39,199 951,049
funds at 31
August 2023
Net return on
ordinary
activities – – – – 26,831 10,844 37,675
after
taxation for
the period
Dividend paid
to 9 – – – – – (20,321) (20,321)
shareholders
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
shareholders’ 16,205 238,442 3,256 5,152 675,626 29,722 968,403
funds at 29
February 2024
========= ========= ========= ========= ========= ========= =========
Year ended 31
August 2023
(audited)
Total
shareholders’ 16,205 238,442 3,256 5,152 629,078 30,466 922,599
funds at 31
August 2022
Net return on
ordinary
activities – – – – 19,717 34,596 54,313
after
taxation for
the year
Dividends
paid to 9 – – – – – (25,863) (25,863)
shareholders
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
shareholders’ 16,205 238,442 3,256 5,152 648,795 39,199 951,049
funds at 31
August 2023
========= ========= ========= ========= ========= ========= =========
Six months
ended 28
February 2023
(unaudited)
Total
shareholders’ 16,205 238,442 3,256 5,152 629,078 30,466 922,599
funds at 31
August 2022
Net return on
ordinary
activities – – – – 85,225 9,869 95,094
after
taxation for
the period
Dividend paid
to 9 – – – – – (17,663) (17,663)
shareholders
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
shareholders’ 16,205 238,442 3,256 5,152 714,303 22,672 1,000,030
funds at 28
February 2023
========= ========= ========= ========= ========= ========= =========
Balance Sheet as at
29.02.24 31.08.23 28.02.23
unaudited audited unaudited
Notes £’000 £’000 £’000
Fixed assets
Investments 10 912,136 882,692 904,659
--------------- --------------- ---------------
Current assets
Derivative instruments 10 2,675 1,769 2,631
Debtors 5,908 8,937 4,942
Amounts held at futures
clearing houses and 775 – 425
brokers
Cash and cash equivalents 55,180 59,460 89,441
--------------- --------------- ---------------
64,538 70,166 97,439
========= ========= =========
Current liabilities
Derivative instruments 10 (1,580) (949) (888)
Bank overdraft (5,260) – –
Other creditors (1,431) (860) (1,180)
--------------- --------------- ---------------
(8,271) (1,809) (2,068)
========= ========= =========
Net current assets 56,267 68,357 95,371
========= ========= =========
Net assets 968,403 951,049 1,000,030
Capital and reserves
Share capital 11 16,205 16,205 16,205
Share premium account 238,442 238,442 238,442
Capital redemption reserve 3,256 3,256 3,256
Other non-distributable 5,152 5,152 5,152
reserve
Capital reserve 675,626 648,795 714,303
Revenue reserve 29,722 39,199 22,672
--------------- --------------- ---------------
Total shareholders’ funds 968,403 951,049 1,000,030
========= ========= =========
Net asset value per 12 298.80p 293.44p 308.56p
ordinary share
========= ========= =========
Cash Flow Statement for the six months ended
29.02.24 31.08.23 28.02.23
unaudited audited unaudited
£’000 £’000 £’000
Operating activities
Investment income received 18,069 39,436 15,650
Net derivative income 859 5,934 3,479
Interest received 1,861 2,971 1,438
Investment management fee paid (2,887) (5,699) (2,831)
Directors’ fees paid (85) (173) (91)
Other cash payments (332) (777) (416)
--------------- --------------- ---------------
Net cash inflow from operating
activities before finance costs 17,485 41,692 17,229
and taxation
========= ========= =========
Finance costs paid (3,040) (4,622) (1,925)
Overseas taxation incurred 216 (1,119) 51
--------------- --------------- ---------------
Net cash inflow from operating 14,661 35,951 15,355
activities
========= ========= =========
Investing activities
Purchases of investments (133,738) (429,178) (210,375)
Sales of investments 124,932 368,171 192,392
Receipts on long CFDs 23,200 70,856 47,093
Payments on long CFDs (17,719) (45,085) (23,445)
Movement on amounts held at
futures clearing houses and (775) 8,190 7,765
brokers
--------------- --------------- ---------------
Net cash (outflow)/inflow from (4,100) (27,046) 13,430
investing activities
========= ========= =========
Net cash inflow before financing 10,561 8,905 28,785
activities
========= ========= =========
Financing activities
Dividends paid (20,321) (25,863) (17,663)
Net cash outflow from financing (20,321) (25,863) (17,663)
activities
Net (decrease)/increase in cash (9,760) (16,958) 11,122
and cash equivalents
Cash and cash equivalents at the 59,460 80,450 80,450
beginning of the period
Effect of movement in foreign 220 (4,032) (2,131)
exchange
--------------- --------------- ---------------
Cash and cash equivalents at the 49,920 59,460 89,441
end of the period
--------------- --------------- ---------------
Represented by:
Cash at bank 66 2,028 2,868
Bank overdraft (5,260) – –
Amount held in Fidelity 55,114 57,432 86,573
Institutional Liquidity Fund
--------------- --------------- ---------------
49,920 59,460 89,441
========= ========= =========
Notes to the Financial Statements
1 Principal Activity
2 Publication of Non-statutory Accounts
The Financial Statements in this Half-Yearly Report have not been audited by the Company’s Independent Auditor and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006 (the “Act”). The financial information for the year ended
3 ACCOUNTING POLICIES
(i) Basis of Preparation
The Company prepares its Financial Statements on a going concern basis and in accordance with
(ii) Going Concern
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these Financial Statements. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these Financial Statements. This conclusion also takes into account the Directors’ assessment of the risks faced by the Company as detailed in the Interim Management Report above.
4 Income
Six months Year Six months
ended ended ended
29.02.24 31.08.23 28.02.23
unaudited audited unaudited
£’000 £’000 £’000
Investment income
UK dividends 10,044 29,189 10,736
UK scrip dividends 526 – –
Interest on securities 785 805 109
Overseas dividends 3,096 10,543 2,234
--------------- --------------- ---------------
14,451 40,537 13,079
========= ========= =========
Derivative income
Dividends received on long CFDs 1,011 3,180 621
--------------- --------------- ---------------
Investment and derivative income 15,462 43,717 13,700
========= ========= =========
Other interest
Interest received on bank
deposits, collateral and money 1,861 2,965 1,438
market funds
Interest received on tax – 6 –
reclaims
--------------- --------------- ---------------
1,861 2,971 1,438
========= ========= =========
Total income 17,323 46,688 15,138
========= ========= =========
No special dividends have been recognised in capital during the period (year ended
5 Investment Management Fees
Six months Year Six months
ended
ended 31.08.23 ended
29.02.24 audited 28.02.23
unaudited £’000 unaudited
£’000 £’000
Investment management fees 2,863 5,698 2,806
========= ========= =========
FII charges investment management fees at an annual rate of 0.60% of net assets. Fees are accrued on a daily basis and payable monthly.
6 Finance Costs
Six months Year Six months
ended ended ended
29.02.24 31.08.23 28.02.23
unaudited audited unaudited
£’000 £’000 £’000
Interest paid on long CFDs 2,992 4,761 1,995
Interest on bank overdrafts 2 13 1
--------------- --------------- ---------------
2,994 4,774 1,996
========= ========= =========
7 Taxation on Return on Ordinary Activities
Six months Year Six months
ended ended ended
28.02.24 31.08.23 28.02.23
unaudited audited unaudited
£’000 £’000 £’000
Overseas taxation 154 672 8
--------------- --------------- ---------------
Total taxation charge for the 154 672 8
period
========= ========= =========
8 Return per Ordinary Share
Six months Year Six months
ended ended ended
29.02.24 31.08.23 28.02.23
unaudited audited unaudited
Revenue return per ordinary 3.34p 10.67p 3.04p
share
Capital return per ordinary 8.28p 6.08p 26.30p
share
--------------- --------------- ---------------
Total return per ordinary share 11.62p 16.75p 29.34p
========= ========= =========
The return per ordinary share is based on the net return on ordinary activities after taxation for the period divided by the weighted average number of ordinary shares held outside of
£’000 £’000
Net revenue return on ordinary activities after 10,844 34,596
taxation
Net capital return on ordinary activities after 26,831 19,717
taxation
--------------- ---------------
Net total return on ordinary activities after 37,675 54,313
taxation
========= =========
Number Number
Weighted average number of ordinary shares held 324,098,920 324,098,920
outside of Treasury
=========== ===========
9 Dividends Paid to Shareholders
Six months Year Six months
ended ended ended
29.02.24 31.08.23 28.02.23
unaudited audited unaudited
£’000 £’000 £’000
Final dividend of 6.27 pence per
ordinary share paid for the year 20,321 – –
ended 31 August 2023
Interim dividend of 2.53 pence
per ordinary share paid for the – 8,200 –
year ended 31 August 2023
Final dividend of 5.45 pence per
ordinary share paid for the year – 17,663 17,663
ended 31 August 2022
--------------- --------------- ---------------
20,321 25,863 17,663
========= ========= =========
The Company has declared an interim dividend for the six month period to
10 Fair Value Hierarchy
The Company is required to disclose the fair value hierarchy that classifies its financial instruments measured at fair value at one of three levels, according to the relative reliability of the inputs used to estimate the fair values.
Classification Input
Level 1 Valued using quoted prices in active markets for identical assets
Valued by reference to inputs other than quoted prices included
Level 2 in level 1 that are observable (i.e. developed using market data)
for the asset or liability, either directly or indirectly
Level 3 Valued by reference to valuation techniques using inputs that are
not based on observable market data
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset. The valuation techniques used by the Company are as disclosed in the Company’s Annual Report for the year ended
Level 1 Level 2 Level 3 Total
29 February 2024 £’000 £’000 £’000 £’000
(unaudited)
Financial assets
at fair value
through profit
or loss
Investments 884,245 23,919 3,972 912,136
Derivative
instrument – 2,675 – 2,675
assets
--------------- --------------- --------------- ---------------
884,245 26,594 3,972 914,811
========= ========= ========= =========
Financial
liabilities at
fair value
through profit
or loss
Derivative
instrument – (1,559) (21) (1,580)
liabilities
========= ========= ========= =========
Level 1 Level 2 Level 3 Total
31 August 2023 £’000 £’000 £’000 £’000
(audited)
Financial assets
at fair value
through profit
or loss
Investments 857,351 23,246 2,095 882,692
Derivative
instrument – 1,769 – 1,769
assets
--------------- --------------- --------------- ---------------
857,351 25,015 2,095 884,461
========= ========= ========= =========
Financial
liabilities at
fair value
through profit
or loss
Derivative
instrument – (949) – (949)
liabilities
========= ========= ========= =========
Level 1 Level 2 Level 3 Total
28 February 2023 £’000 £’000 £’000 £’000
(unaudited)
Financial assets
at fair value
through profit
or loss
Investments 896,737 7,426 496 904,659
Derivative
instrument – 2,631 – 2,631
assets
--------------- --------------- --------------- ---------------
896,737 10,057 496 907,290
========= ========= ========= =========
Financial
liabilities at
fair value
through profit
or loss
Derivative
instrument – (888) – (888)
liabilities
========= ========= ========= =========
11 Share Capital
29 February 2024 31 August 2023 28 February 2023
unaudited audited unaudited
Number of £’000 Number of £’000 Number of £’000
shares shares shares
Issued, allotted
and fully paid
ordinary shares of
5 pence each
Total share
capital
Beginning of the 324,098,920 16,205 324,098,920 16,205 324,098,920 16,205
period
Ordinary shares – – – – – –
issued/repurchased
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
End of the period 324,098,920 16,205 324,098,920 16,205 324,098,920 16,205
========== ========== ========== ========== ========== ==========
During the period, no new ordinary shares were issued (year ended
12 Net Asset Value per Ordinary Share
The calculation of the net asset value per ordinary share is based on the total shareholders’ funds divided by the number of ordinary shares held outside of
29.02.24 31.08.23 28.02.23
unaudited audited unaudited
Total shareholders’ funds £968,403,000 £951,049,000 £1,000,030,000
Ordinary shares held outside of 324,098,920 324,098,920 324,098,920
Treasury at the period end
Net asset value per ordinary share 298.80p 293.44p 308.56p
========= ========= =========
It is the Company’s policy that shares held in
13 Transactions with the Manager and Related Parties
Details of the fee arrangements are given in Note 5 above. During the period, fees payable to FII for portfolio management services of £2,863,000 (year ended
FII also provides the Company with marketing services. The total amount payable for these services during the period was £132,000 (year ended
As at
As at the date of this report, the following members of the Board held ordinary shares in the Company:
The financial information contained in this Half-Yearly Results Announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the six months ended
The information for the year ended
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.
A copy of the Half-Yearly Report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.morningstar.co.uk/uk/NSM
The Half-Yearly Report will also be available on the Company's website at www.fidelity.co.uk/specialvalues where up to date information on the Company, including daily NAV and share prices, factsheets and other information can also be found.
