British & American Investment Trust Plc - Annual Financial Report
Annual Financial Report
British & American Investment Trust PLC
Annual Financial Report for the year ended 31 December 2024
Registered number: 00433137
Directors Registered office David G Seligman (Chairman) Wessex House Jonathan C Woolf (Managing Director)1 Chesham Street Alex Tamlyn (Non-executive) Telephone: 020 7201 3100Julia Le Blan (Non-executive and Chair of the Audit Registered inEngland Committee) No.0043313730 April 2025
This is the Annual Financial Report as required to be published under DTR 4 of the UKLA Listing Rules.
Financial Highlights
For the year ended
2024 2023
Revenue Capital Total Revenue Capital Total
return return return return
£000 £000 £000 £000 £000 £000
Profit/(loss)
before tax – 438 (690) (252) 797 (585) 212
realised
Profit/(loss)
before tax – – 2,270 2,270 – (2,196) (2,196)
unrealised
__________ __________ __________ __________ __________ __________
Profit/(loss)
before tax – 438 1,580 2,018 797 (2,781) (1,984)
total
__________ __________ __________ __________ __________ __________
Earnings per
£1 ordinary 0.49p 6.32p 6.81p 1.86p (11.12)p (9.26)p
share – basic*
__________ __________ __________ __________ __________ __________
Earnings per
£1 ordinary
share – 0.49p 4.51p 5.87p 1.86p (11.12)p (9.26)p
diluted*
__________ __________ __________ __________ __________ __________
Net assets 5,953 4,512
__________ __________
Net assets per
ordinary share
– deducting
preference
shares
at fully 17p 13p
diluted net
asset value**
__________ __________
– diluted 17p 13p
__________ __________
Diluted net
asset value
per ordinary 3p
share at 25
April 2025
__________
Dividends
declared or
proposed for
the period:
per ordinary
share
– interim paid 1.75p 1.75p
– final 0.0p 0.0p
proposed
per preference 1.75p 1.75p
share
*Calculated in accordance with International Accounting Standard 33 ‘Earnings per Share’. The cumulative convertible non-redeemable preference shares are anti-dilutive relating to the calculation of diluted EPS on the revenue return (Note 3).
**Basic net assets are calculated using a value of fully diluted net asset value for the preference shares.
Chairman’s Statement
I report our results for the year ended
Revenue
The return on the revenue account before tax amounted to £0.4 million (2023: £0.8 million), a lower level than in the previous year due to a lower level of dividends received from our subsidiary company. The bulk of this revenue was accounted for by dividends received from our subsidiary company arising from gains and income related to our US investments.
Gross revenues totalled £0.9 million (2023: £1.3 million). In addition, film income of £112,000 (2023: £74,000) was received in our subsidiary company. In accordance with IFRS10, this income stream is not included within the revenue figures noted above because consolidated financial statements are not prepared.
The total return before tax, comprising revenue and capital return, amounted to a profit of £2.0 million (2023: £2.0 million loss), representing net revenue of £0.4 million, a realised loss of £0.7 million and an unrealised gain of £2.3 million. The revenue return per ordinary share was 0.5p (2023: 1.9p) on an undiluted basis.
Net Assets and Performance
Net assets at the year end were £6.0 million (2023: £4.5 million), an increase of 31.9 percent after payment of £0.6 million in dividends to shareholders during the year. This compares to an increase in the
This substantial outperformance for the year as a whole more than reversed the underperformance of the previous year despite falling from the exceptional outperformance of over 100 percent registered at the half year. These results were due almost entirely to the significant recovery of 70 percent in the value of our largest investment, Geron Corporation, over the year as a whole
.
As reported at the interim stage, this reflected the long-awaited achievement by Geron of clearance by the
Equity markets in the
Dividend
In 2024, dividends of
It is our intention to pay an interim dividend this year of no less amount contingent on the profitable sales of investments during the year. The position regarding these investments is set out in more detail in the Managing Director’s report below.
Recent events and outlook
As explained in considerably more detail in the Managing director’s report below, 2025 has to date brought a totally unexpected reversal in the advances the portfolio experienced in 2024 due to an unexpected and significant fall in the share price of Geron in the last two months which has negatively impacted our portfolio value. We believe this reversal to be temporary and that the portfolio will regain its value of the previous year for the reasons set out in that report.
The perceived economic and business uncertainties going forward in the
The initial market reaction to his promises to reduce the costs of living and inflation, cut taxes and promote business was positive and the equity market and US dollar strengthened further in the last two months of 2024. However, this reaction soon dissipated after the new administration took office in mid January.
It had been expected that some of Trump’s more extreme plans - for example to slash the costs of government administration, abolish entire government departments and introduce penal international trade tariffs on goods - were intended more as a negotiating tactic rather than firm strategy, given Trump’s tendency to use extreme policy announcements as a crude lever and then change course abruptly to achieve quick commercial gains. However, this has not been the case and if anything has been doubled down upon as seen by the mass and indiscriminate layoffs of government employees, the nonchalant shedding of age-old alliances and earlier this month the imposition of a far harsher than expected regime of international trade tariffs on goods imported from all other countries.
The accumulation of all these disruptive and damaging policies, many of which upend long-established economic, defence and trade arrangements which have underpinned global prosperity and security as long as most people can remember, has resulted in extreme levels of uncertainty since the beginning of the year causing significant falls or re-alignments in all markets, be they financial, investment, currency, commodity, employment or trade, whether in the
It is too early to say how these unprecedented policy changes in the
Our investment policy has for some time relied on the capture of value from our major investments in US biotechnology and this remains the case. However, as reported at the interim stage, it has also been our aim to rotate some of our investments into other asset classes as conditions and performance warrant and we have recently started to initiate this change. The recent turmoil in equity markets has provided some early justification for this, but we still await the achievement of target returns from our US biotechnology investments to follow through with this on a sustained basis. Our largest investment, Geron Corporation, had an excellent year in 2024, finally completing its aim of obtaining FDA approval for its oncology drug in the
As at
Managing Director's report
2024
As noted in the Chairman’s statement above, our portfolio outperformed substantially in 2024 as a result of increases in the value of our principal investment, US biopharma company
Geron’s share price rose to a 6 year high in June, representing an all time high in terms of market capitalisation of
2025
2025 has to date brought a totally unexpected reversal in the advances the portfolio experienced in 2024 due to an unexpected and significant fall in the share price of Geron in the last two months. We believe this reversal to be temporary and that the portfolio will regain its value of the previous year for the reasons set out below.
Geron Corporation
On
Based on this excellent report, one could have expected further and significant advances in Geron’s value. However, since then inexplicably and very frustratingly the exact opposite has occurred.
Following a botched presentation by the CEO of these results the same day, a major sell-off occurred in the company’s share price. This followed remarks by the CEO to say that the company’s sales had been flat over the
A statement of this nature by the CEO, without including the obvious caveat that it might be linked to a reduced take-up of a new drug over the holiday period given the many administrative and monitoring requirements connected with new drug commencement and the obtaining of insurance cover (a fact belatedly acknowledged in the subsequent Q&A session as being not un-common for companies marketing new drugs) was always going to be a hostage to fortune, and particularly given Geron’s long history as a target of short selling and other negative market practices. And so it proved, with the always ready short funds taking advantage of the opportunity to sell the stock down aggressively and in high volume. And within 10 days of his presentation, Geron’s long-time President and CEO had left the company.
This decline in price took the stock price down to levels 75 percent below the high reached last June when it had received marketing approval and to valuations of 6 years ago when the Phase 3 trials had not even commenced. As will be seen from the analysis below, Geron stock should now be trading at multiples of the current price based on standard market metrics and so it can only be surmised that this recent and precipitous decline in price could very well be attributable to the continued and indeed enhanced effect of the untoward actions and market forces which have for so long time obscured the true and fair market valuation of the company’s operational circumstances and business potential.
That this drop was unjustified can be seen in the context of how biotech company valuations typically progress after receiving new drug marketing approvals and commencing sales. In the initial period following the introduction to the market of an important new and ground-breaking drug providing significant unmet medical need, such as Geron’s Rytelo, biotech company sales will generally increase steadily and indeed exponentially as patients start to take up the new drug in response to accelerating sales efforts and word of mouth from doctors and patients about the effectiveness of the drug. This was indeed the pattern starting to be seen in the first six months of Geron’s commercial sales which commenced last July.
Geron is currently trading on a multiple of less than 3 times management’s expected first year sales estimates whereas generally one would expect a company marketing a new drug to be trading on around 10 times first year sales (in anticipation of standard industry multiples of approximately 6 times sales for a successful drug once sales have grown to reach stable levels of market penetration). And this takes no account of potential future sales from Rytelo’s second indication, Myelofibrosis (MF), which is nearing completion of Phase 3 trials and which has a larger addressable market than MDS, its already approved indication, or indeed prospective European sales following Rytelo’s recent approval in Europe. Consequently, the market price of Geron is currently trading up to three times below what one would normally expect at this stage.
If one also takes into account the fact that Geron holds cash balances of
As noted above, within 10 days of this mismanaged presentation and its unfortunate aftermath, the CEO’s summary departure after 15 years in the position was announced. Given the long-term unhappiness of many of Geron’s shareholders (ourselves included) in the CEO’s management of the company and his repeated inability over many years to protect the interests of shareholders in the face of negative market forces (as referred to many times in our previous reports), we had expected some recovery in the share price following his departure.
However, to date such recovery has not occurred and has to a considerable extent been prevented by the extreme turbulence in financial markets which occurred three weeks later on 2nd April with the announcement of Donald Trump’s international trade tariff increases. The ensuing retaliatory trade tariff war brought immediate and severe disruption to all equity markets worldwide, and particularly in the
We have had cause over the past many years to comment on the abnormal trading patterns of this stock and the severe lack of price discovery which has plagued its market movements. We have criticised management frequently for its inability to protect the interests of shareholders in the face of this market distortion.
It is believed that this repeated and unexplained pattern of adverse market movements is indicative of the various powerful and opposing market forces at work in relation to this stock. While it is only possible to speculate, it could be surmised that the high level of short selling seen for years in this stock (fed by the periodic but inevitable flow of dilutive secondary issues applicable to all biotech stocks), the high level of institutional holdings (with over 80 percent of the stock) willing to stock lend to generate ongoing income by satisfying short-seller cover as they await the ultimate realisation of capital profit on their holdings and, in the background, big pharma companies waiting to acquire the company but minimise an eventual acquisition cost, has conspired unhelpfully and damagingly to keep the stock price artificially low. The stock has effectively become the plaything of these groups until they are ready to commit and realise the gains or capitulate and suffer the losses on their positions.
Illustrative of this has, for instance, been the immediate filing of a number of class action suits by ambulance chasing lawyers following the recent severe drop on Geron's share price. Daily reminders soliciting plaintiffs for these class action suits are publicly posted which contribute to the artificially low share price being sustained as they inevitably cause ongoing reputational and investment damage to the company. This practice is a well known and cost free ploy of market participants such as short funds or prospective pharma acquirers seeking a lower share price for their own advantage. Typically these suits prove to be baseless and are settled by the companies concerned to save legal costs and reputation, with no admission of fault and any shareholder compensation or litigation commissions are covered by the company's insurers. This is now the third occurrence of such suits against Geron over the past 10 years, with no wrong-doing proved against the company and no fault admitted in the first two cases settled.
The endgame of these market distortions is now at hand, as the company is no longer a speculative play but rather a company with an approved product, generating sales and capable of being valued on standard and well-established financial metrics. With the stock trading at levels far below what such metrics would reasonably dictate, it is starting to look like a false market has developed in this stock as the influence of these opposing and powerful institutional forces trading Geron stock has become even clearer.
The endgame for a post-approval biotech generating sales would normally be acquisition by or partnership with a large pharma company. Very few biotech companies remain independent or un-partnered by this stage of the process. Furthermore, the recent abrupt departure of Geron’s long-time CEO leaves the company vulnerable or indeed ready for strategic corporate action by interested pharma companies and so should only enhance such an outcome. Furthermore, the important announcement made shortly after the CEO’s departure that Geron received marketing approval in
Whether it was pressure from institutional shareholders or the board which engineered the CEO’s sudden departure, investors have every right to be angry about the way management has failed to protect their interests over many years and particularly now. Management may be aligned to some extent with investors given the heavy and consistent award to them of bonus and incentive equity over many years, but they have shown little sign of protecting shareholder interests. Perhaps with the recent departure of the CEO and with their equity now well underwater they might now start to do so.
We believe it is now incumbent on Geron’s board to take urgent steps to normalise its stock price to a range which properly reflects its current circumstances and prospects and is not just the victim of powerful market participants with their own agendas. Given the lack of confidence the market has shown over a number of years in the ability of management to protect shareholder interests from these forces and even now after the successes of 2024, these steps should include without delay negotiating a sale or partnering of the company with a suitable large pharma company at a price which properly recognises its current and potential value and offers shareholders a proper return on their investment.
Given all of the above, we see this unfortunate reversal in Geron’s share price of the past two months to be temporary and fully expect it to regain its value of the previous year to reflect its current circumstances and future prospects, irrespective of the current very volatile general market conditions. A presentation of the company’s first quarter results is due to be made by the interim management on 7th May when they will hopefully be able to report that sales have resumed their previously rising track after the Christmas lull and the first year sales estimates can be re-confirmed.
Notwithstanding that, however, we sincerely hope that the interim management now proceeds to take the steps noted above to free the company from trading at the whim of competitively self-serving market forces at prices unconnected with the company’s underlying financial fundamentals and prospects and provides shareholders, be they institutions, retail or employees, with the return they – and we - deserve for holding this stock.
US trade tariffs and other new policy initiatives
The avalanche of over 120 executive orders issued by
This fundamental and isolationist shift in US domestic and international policy has in just a few short months resulted in shock and damage to practically every measure of US strength and international relevance, including its financial markets - both equity and bonds, the US dollar, US treasury yields, international trade, its long-term strategic alliances, defence arrangements and 'soft' power. All things which have for the past many decades made the US the exceptional power with a pre-eminent economy which we all recognise.
Further adverse effects of these new policies are expected to reveal themselves in the
The numerous mis-steps of the new US administration surrounding the changes themselves and their subsequent chaotic implementation has caused high levels of uncertainty not only in the
This has damaged markets worldwide and presented the greatest shock to markets since the financial crisis of 2008. The highly turbulent market in the
The basic incoherence behind these recently introduced, suspended, reduced and then re-instated tariffs and the bogus nature of their calculation has already caused substantial real world damage to markets (whether equity, bond, currency, or commodity), to international trade, to the US dollar and to America’s international and financial reputation over the last few weeks, as is evident for all to see.
For example, within days of the announcement of these trade tariffs on 2nd April (so called ‘Liberation Day’), the US NASDAQ and Biotech indices fell precipitously and entered bear market territory. The Dow suffered almost the same fate, retreating 18 percent from its high in January. Although these indices have recovered marginally since, they are all still firmly in correction territory being 18.5 percent, 20 percent and 13 percent, respectively, below their all time highs at the end of last year. In the case of the Dow, its precipitous decline of 9 percent in the first three weeks of April, has been the largest such April decline since 1932, at the time of the Great Depression.
The fatuous notion espoused by Trump that a trade deficit in goods represents theft by the exporting country and must be punished is based on an entirely false premise when those goods are supplied at costs and in quantities unable to be supplied by the importing country. This is compounded by the fact that if the export of US services is taken into account, the US runs a huge overall trade surplus with the world in the other direction. And this situation exists precisely because over time the US economy and its workforce has developed, grown and sophisticated, providing better, new economy and more highly paid jobs to its citizens, which has in turn resulted in the massive outperformance and wealth creation the
Trade tariffs between countries have always existed and in many cases are used as a tool both to protect importing countries from the malign trade practices of others such as predatory pricing and dumping contrary to the rules of the WTO, and also as a means of raising revenue for the importing country. There can also be an effective policy element embedded in trade tariffs designed to encourage domestic production via import substitution and the protection of vital or security relevant industries.
The latter is the more rational impetus behind Trump’s imposition of higher tariffs, given his perceived notion that the
However, for such tariffs to be effective in any meaningful way and not have the counter-productive effect in the meantime of destroying domestic demand and economic confidence due to the imposition of high prices and disruption to global supply chains (and thus investors’ appetite to shoulder the many years of work and investment needed to create alternative and viable domestic production), they have to be implemented seriously, cautiously, carefully and gradually which is very far from the case at the moment. On the contrary, these tariffs have been poorly designed, poorly planned and poorly executed as has become obvious from the wild and value destroying swings in financial and trade markets which have occurred since their imposition. Encouraging the creation of new centres and means of domestic production is a delicate and incentive-laden task which will not necessarily be furthered through the stick of imposing of heavy financial penalties on trade.
In sum, Trump’s hope that his trade and re-industrialisation policies would represent a ‘back to the future’ moment for the
I ncome statement
For the year ended
2024 2023
Revenue Capital Total Revenue Capital Total
return return return return
£ 000 £ 000 £ 000 £ 000 £ 000 £ 000
Investment income (note 2) 939 - 939 1,264 - 1,264
Holding gains/(losses) on
investments at fair value - 2,270 2,270 - (2,196) (2,196)
through profit or loss
(Losses)/gains on disposal
of investments at fair
value through profit or - (198) (198) - 45 45
loss
Losses on provision for - (254) (254) - (220) (220)
liabilities and charges
Foreign exchange gains/ (7) 41 34 36 (119) (83)
(losses)
Expenses (436) (246) (682) (453) (255) (708)
________ ________ ________ ________ ________ ________
Profit/(loss) before 496 1,613 2,109 847 (2,745) (1,898)
finance costs and tax
Finance costs (58) (33) (91) (50) (36) (86)
________ ________ ________ ________ ________ ________
Profit/(loss) before tax 438 1,580 2,018 797 (2,781) (1,984)
Tax 35 - 35 17 - 17
________ ________ ________ ________ ________ ________
Profit/(loss) for the year 473 1,580 2,053 814 (2,781) (1,967)
________ ________ ________ ________ ________ ________
Earnings per share
Basic - ordinary shares* 0.49p 6.32p 6.81p 1.86p (11.12)p (9.26)p
________ ________ ________ ________ ________ ________
Diluted - ordinary shares* 0.49p 4.51p 5.87p 1.86p (11.12)p (9.26)p
________ ________ ________ ________ ________ ________
The company does not have any income or expense that is not included in the profit(loss) for the year. Accordingly, the ‘Profit/(loss)for the year’ is also the ‘Total Comprehensive Income for the year’ as defined in IAS 1 (revised) and no separate Statement of Comprehensive Income has been presented.
The total column of this statement represents the Income Statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the
All profit and total comprehensive income is attributable to the equity holders of the company.
*Calculated in accordance with International Accounting Standard 33 ‘Earnings per Share’. The cumulative convertible non-redeemable preference shares are anti-dilutive relating to the calculation of diluted EPS on the revenue return.
Statement of changes in equity
For the year ended
Share Capital Retained Total
capital reserve earnings
£ 000 £ 000 £ 000 £ 000
Balance at 31 December 2022 35,000 (27,928) 19 7,091
Changes in equity for 2023
(Loss)/profit for the period - (2,781) 814 (1,967)
Ordinary dividend paid (note 4) - - (437) (437)
Preference dividend paid (note 4) - - (175) (175)
________ ________ ________ ________
Balance at 31 December 2023 35,000 (30,709) 221 4,512
Changes in equity for 2024
Profit for the period - 1,580 473 2,053
Ordinary dividend paid (note 4) - - (437) (437)
Preference dividend paid (note 4) - - (175) (175)
________ ________ ________ ________
Balance at 31 December 2024 35,000 (29,129) 82 5,953
________ ________ ________ ________
Registered number: 00433137
Balance Sheet
At
2024 2023
£ 000 £ 000
Non-current assets
Investments - at fair value through profit or loss 5,678 4,895
Investment in subsidiaries - at fair value through profit 7,359 6,665
or loss
__________ __________
13,037 11,560
Current assets
Receivables 20 362
Derivatives - at fair value through profit or loss 11 -
Cash and cash equivalents 249 39
__________ __________
280 401
__________ __________
Total assets 13,317 11,961
__________ __________
Current liabilities
Trade and other payables 1,884 2,008
Bank credit facility 942 1,235
__________ __________
(2,826) (3,243)
__________ __________
Total assets less current liabilities 10,491 8,718
__________ __________
Non - current liabilities (4,538) (4,206)
__________ __________
Net assets 5,953 4,512
__________ __________
Equity attributable to equity holders
Ordinary share capital 25,000 25,000
Convertible preference share capital 10,000 10,000
Capital reserve (29,129) (30,709)
Retained revenue earnings 82 221
__________ __________
Total equity 5,953 4,512
__________ __________
Approved:
Cash flow statement
For the year ended
Year ended 2024 Year ended 2023
£ 000 £ 000
Cash flows from operating activities
Profit/(loss) before tax 2,018 (1,984)
Adjustments for:
(Gains)/losses on investments (1,818) 2,371
Proceeds on disposal of investments at fair 832 136
value through profit and loss
Purchases of investments at fair value through (236) (536)
profit and loss
Interest (received)/expensed (5) 22
__________ __________
Operating cash flows before movements in 791 60
working capital
Decrease in receivables 331 161
Decrease in payables (172) (140)
__________ __________
Net cash from operating activities before 950 30
interest
Interest paid (67) (73)
__________ __________
Net cash from operating activities 883 (43)
Cash flows from financing activities
Dividends paid on ordinary shares (300) (180)
Dividends paid on preference shares (80) -
__________ __________
Net cash used in financing activities (380) (180)
__________ __________
Net increase/(decrease) in cash and cash 503 (223)
equivalents
Cash and cash equivalents at beginning of year
(1,196) (973)
__________ __________
Cash and cash equivalents at end of year
(693) (1,196)
__________ __________
Cash and cash equivalents 249 39
Bank credit facility (942) (1,235)
__________ __________
Cash and cash equivalents at end of year
(693) (1,196)
__________ __________
Purchases and sales of investments are considered to be operating activities of the company, given its purpose, rather than investing activities. Cash and cash equivalents at year end shows net movement on the bank facility.
1 Basis of preparation and going concern
The financial information set out above contains the financial information of the company for the year ended
The financial statements have been prepared on a going concern basis adopting the historical cost convention except for the measurement at fair value of investments, derivative financial instruments and subsidiaries.
The information for the year ended
The auditors have reported on the
The directors, having made enquiries, consider that the company has adequate financial resources to enable it to continue in operational existence for the foreseeable future. Accordingly, the directors believe that it is appropriate to continue to adopt the going concern basis in preparing the company's accounts.
2 Income
2024 2023
£ 000 £ 000
Income from investments
UK dividends 263 94
Dividend from subsidiary 578 867
_________ _________
841 961
Other income 98 303
_________ __________
Total income 939 1,264
_________ __________
Total income comprises:
Dividends 841 961
Other interest 96 64
Other income - settlement of US class action suit 2 239
_________ _________
939 1,264
_________ __________
Dividends from investments
Listed investments 263 94
Unlisted investments 578 867
_________ _________
841 961
_________ __________
During the year the company received a dividend of £578,000 (2023 - £867,000) from a subsidiary which was generated from gains made on the realisation of investments held by that company. As a result of the receipt of this dividend a corresponding reduction was recognised in the value of the investment in the subsidiary company.
During the year the company recognised £48,000 of a foreign exchange gain (2023 – £154,000 loss) on the loan of
Under IFRS 10 the income analysis is for the parent company only rather than that of the consolidated group. Thus, film revenues of £112,000 (2023 – £74,000) received by the subsidiary
3 Earnings per ordinary share
The calculation of the basic (after deduction of preference dividend) and diluted earnings per share is based on the following data:
2024 2023
Revenue Capital Total Revenue Capital Total
return return return return
£ 000 £ 000 £ 000 £ 000 £ 000 £ 000
Earnings:
Profit after tax 473 1,580 2,053 814 (2,781) (1,967)
Cumulative convertible
non-redeemablepreference (350) - (350) (350) - (350)
shares dividend
________ _________ _________ _________ _________ _________
Adjusted profit after 123 1,580 1,703 464 (2,781) (2,317)
tax
________ _________ _________ _________ _________ _________
Weighted average number of Weighted average number of
ordinary shares ordinary shares
‘000 ‘000 ‘000 ‘000 ‘000 ‘000
Basic 25,000 25,000 25,000 25,000 25,000 25,000
Diluted 35,000 35,000 35,000 35,000 35,000 35,000
Basic revenue, capital and total return per ordinary share is based on the net revenue, capital and total return for the period after tax and after deduction of dividends in respect of preference shares and on 25 million (2023: 25 million) ordinary shares in issue.
The diluted revenue, capital and total return is based on the net revenue, capital and total return for the period after tax and on 35 million (2023: 35 million) ordinary and preference shares in issue.
*Calculated in accordance with International Accounting Standard 33 ‘Earnings per Share’. The cumulative convertible non-redeemable preference shares are anti-dilutive relating to the calculation of diluted EPS on the revenue return.
4 Dividends
2024 2023
£ 000 £ 000
Amounts recognised as distributions to equity holders in
the period
Dividends on ordinary shares:
Final dividend for the year ended 31 December 2023 of 0.0p - -
(2022: 0.0p) per share
Interim dividend for the year ended 31 December 2024 of
1.75p 437 437
(2023: 1.75p) per share
__________ __________
437 437
__________ __________
Proposed final dividend for the year ended 31 December
2024 of 0.0p (2023: 0.0p) per share - -
__________ __________
Dividends on 3.5% cumulative convertible preference
shares:
Preference dividend for the 6 months ended 31 December
2023 of 0.00p (2022: 0.00p) per share - -
Preference dividend for the 6 months ended 30 June 2024 of
1.75p (2023: 1.75p) per share 175 175
Preference dividend for the 6 months ended 31 December
2024 of 0.00p (2023: 0.00p) per share - -
__________ __________
175 175
__________ __________
We have set out below the total dividend payable in respect of the financial year, which is the basis on which the retention requirements of Section 1158 of the Corporation Tax Act 2010 are considered.
Dividends proposed for the period
2024 2023
£ 000 £ 000
Dividends on ordinary shares:
Interim dividend for the year ended 31 December 2024 of
1.75p (2023: 1.75p) per share 437 437
Proposed final dividend for the year ended 31 December
2024 of 0.0p (2023: 0.0p) per share - -
__________ __________
437 437
__________ __________
Dividends on 3.5% cumulative convertible preference
shares:
Preference dividend for the 6 months ended 30 June 2024 of
1.75p (2023: 1.75p) per share 175 175
Preference dividend for the 6 months ended 31 December
2024 of 0.00p (2023: 0.00p) per share - -
__________ __________
175 175
__________ __________
The non-payment in
An interim dividend declared for the year ended
5 Net asset values
Net asset
value per share
2024 2023
Ordinary shares £ £
Diluted 0.17 0.13
Undiluted 0.17 0.13
Net assets attributable
2024 2023
£ 000 £ 000
Total net assets 5,953 4,512
Less convertible preference shares at fully (1,701) (1,289)
diluted value
__________ __________
Net assets attributable to ordinary 4,252 3,223
shareholders
__________ __________
The undiluted and diluted net asset values per £1 ordinary share are based on net assets at the year end and 25 million (undiluted) ordinary and 35 million (diluted) ordinary and preference shares in issue.
Principal risks and uncertainties
The principal risks facing the company relate to its investment activities and include market risk (other price risk, interest rate risk and currency risk), liquidity risk and credit risk. The other principal risks to the company are loss of investment trust status and operational risk. These will be explained in more detail in the notes to the 2024 Annual Report and Accounts, but remain unchanged from those published in the 2023 Annual Report and Accounts.
Post balance sheet event
In
Related party transactions
The company rents its offices from
The salaries and pensions of the company’s employees, except for the non-executive directors and one employee are paid by
During the year the company did not enter into any investment transactions to sell stock to
At
There have been no other related party transactions during the period, which have materially affected the financial position or performance of the company.
Capital Structure
The company's capital comprises £35,000,000 (2023 – £35,000,000) being 25,000,000 ordinary shares of £1 (2023 – 25,000,000) and 10,000,000 non-voting convertible preference shares of £1 each (2023 – 10,000,000). The rights attaching to the shares will be explained in more detail in the notes to the 2024 Annual Report and Accounts, but remain unchanged from those published in the 2023 Annual Report and Accounts.
Directors’ responsibility statement
The directors are responsible for preparing the financial statements in accordance with applicable law and regulations. The directors confirm that to the best of their knowledge the financial statements prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and the profit/(loss) of the company and that the Chairman’s Statement, Managing Director's Report and the Directors’ report include a fair review of the information required by rules 4.1.8R to 4.2.11R of the FCA’s Disclosure and Transparency Rules, together with a description of the principal risks and uncertainties that the company faces.
Annual General Meeting
This year’s Annual General Meeting has been convened for Thursday
