JANUS HENDERSON FUND MANAGEMENT UK
LIMITED
HENDERSON OPPORTUNITIES TRUST
PLC
LEGAL ENTITY IDENTIFIER
(LEI): 2138005D884NPGHFQS77
20 June 2024
HENDERSON OPPORTUNITIES TRUST
PLC
(the
"Company")
Unaudited results for the half year ended 30
April 2024
This announcement contains regulated
information.
Investment Objective
The Company aims to achieve capital
growth in excess of the FTSE All-Share Index from a portfolio of
primarily UK investments.
Performance summary
|
(Unaudited)
30 April
2024
|
(Unaudited)
30 April
2023
|
(Audited)
31 October
2023
|
Net Asset Value ('NAV') per
share1
|
241.1p
|
245.7p
|
207.0p
|
Share price1
|
212.5p
|
210.0p
|
173.0p
|
Net assets
|
£95.2m
|
£97.0m
|
£81.8m
|
Discount2 to
NAV
|
11.9%
|
14.5%
|
16.4%
|
NAV total return per share
|
38.1p
|
15.0p
|
(20.7p)
|
NAV total return
|
18.6%
|
6.3%
|
-9.3%
|
Share price total return
|
25.5%
|
4.9%
|
-12.2%
|
Revenue return per share - basic and
diluted
|
2.8p
|
3.2p
|
6.7p
|
Dividends per share1,
3
|
3.0p
|
3.0p
|
7.1p
|
Net gearing4
|
9.5%
|
14.9%
|
9.6%
|
Total Return Performance to 30 April 2024
|
|
6 Months
%
|
1 Year
%
|
3 Years
%
|
5 Years
%
|
10 Years
%
|
NAV5
|
18.6
|
1.2
|
-20.1
|
10.2
|
57.4
|
Benchmark6
|
14.2
|
7.5
|
23.9
|
30.1
|
75.8
|
Share price7
|
25.5
|
5.0
|
-27.2
|
21.2
|
47.9
|
Peer group average
NAV8
|
19.5
|
7.8
|
-0.9
|
23.4
|
67.6
|
Sources: Morningstar Direct and
Janus Henderson
1. Comparative figures for
the periods ended 30 April 2023 and 31 October 2023 have been
restated due to the sub-division of each ordinary share of 25p into
five ordinary shares of 5p each on 11 March 2024
2. Calculated based on the
NAV per ordinary share and share price at period end
3. The dividends per ordinary
share for the period 1 November 2023 to 30 April 2024 include a
first interim dividend payment of 1.5p per ordinary share of 5p
each payable on 20 June 2024 and a second interim dividend payment
of 1.5p per ordinary share of 5p each payable on 20 September 2024.
See the Chairman's Statement and Note 3 for further
details
4. Net gearing reflects the
amount of borrowings (bank loans or overdrafts) the Company has
used to invest in the market less cash and investment cash funds,
as a percentage of net assets
5. NAV per ordinary share
total return (including dividends reinvested)
6. FTSE All-Share
Index
7. Share price total return
(including dividends reinvested)
8. AIC UK All Companies
Sector simple average
CHAIRMAN'S STATEMENT AND INTERIM MANAGEMENT
REPORT
Performance review and market backdrop
In the six months to the end of
April the Company's net asset value (NAV) on a total return basis
rose 18.6%, outperforming its FTSE All-Share Index benchmark which
rose 14.2%. The Company's share price delivered a 25.5% return.
This was a welcome recovery in both absolute and relative terms,
although we recognise that on a long-term basis performance remains
disappointing and therefore we need this trajectory to
continue.
The Board and the Fund Managers have
been continuing their programme of constructive engagement on
performance and strategy and the Board is confident that the Fund
Managers will continue to take advantage of the current investment
opportunities across the UK market. The Board is also very focused
on the interests of shareholders, and the recent five for one share
split should help monthly savers and those who reinvest their
dividends.
Over the last six months the drivers
of the Company's NAV growth were a recovery in smaller company
share prices from oversold levels in the autumn as well as
'recovery' shares such as Rolls-Royce that continued to perform
well. In the case of smaller companies, some of the best performers
within this six-month period had been weak in the preceding six
months (for example Springfield
Properties and Next 15
Group). The Fund Managers had found the previous share price
weakness difficult to justify on company fundamentals, and in many
cases shares have returned to still below long run average
valuation levels.
From the table below it can be seen
that, with the exception of the FTSE Small-Cap Index (where some
detractors such as Vanquis fell), the Company's portfolio
outperformed the indices it invests in during the six months
(comparing the 3rd and 5th column in the table below).
Index:
|
Company
weighting (%)
|
Company
total return (%)
|
FTSE
All-Share
Index
weighting (%)
|
FTSE
All-Share
Index
total return (%)
|
FTSE 100
|
33.3
|
28.3
|
84.5
|
13.5
|
FTSE 250
|
17.9
|
23.0
|
13.5
|
18.8
|
FTSE SmallCap
|
7.4
|
-5.9
|
2.0
|
15.9
|
FTSE AIM All-Share
|
39.9
|
13.7
|
-
|
12.9
|
Company and Benchmark weights are as
at the half year end, 30 April 2024. The Company weights do
not add up to 100 as a small portion of the portfolio sits outside
of major UK indices.
Viewed from an alternative
perspective, stock selection was positive during the period as was
the contribution from gearing. Size allocation of the portfolio (in
other words having more than the FTSE All-Share benchmark in
smaller companies) was approximately neutral, having been
materially negative in the previous financial year:
Data illustrating Attribution
Returns (%):
Benchmark
|
14.2
|
Size Allocation
|
-0.4
|
Stock Selection
|
3.8
|
Gearing
|
1.4
|
Fees
|
-0.5
|
Company
|
18.6
|
Source: Janus Henderson Investors,
Factset
Turning to stock specifics, the
larger companies held performed well during the period driven by
'recovery' shares, such as Rolls-Royce and Marks & Spencer, that continue to
make operational progress under new management teams. Banking
shares Barclays and
NatWest also performed
well, as margins are benefitting from a higher interest rate
environment while loan losses remain low. The detractors can
broadly be grouped into two areas - energy companies (particularly
those with assets in the North Sea) and early-stage
businesses.
Energy company share prices have
been impacted by two headwinds - fiscal uncertainty in the North
Sea, which is delaying investment decisions, as well as ongoing
energy price 'normalisation' since Russia's invasion of Ukraine.
Early-stage companies have in some cases had operational
issues with scaling up manufacturing (Surface Transforms) and in some cases
had external market headwinds (Oxford Nanopore). The end market
potential of these businesses remains large, and sentiment towards
the area has gone from overly optimistic in 2020/2021 to extreme
caution currently.
Top
five absolute contributors
|
Share
price total return (%)
|
Contribution to NAV (%)
|
Rolls-Royce
|
91.8
|
2.6
|
Barclays
|
59.0
|
2.2
|
Springfield Properties
|
83.7
|
1.8
|
Next 15 Group
|
42.4
|
1.2
|
IQGeo
|
108.7
|
1.1
|
Top
five absolute detractors
|
Share
price total return (%)
|
Contribution to NAV (%)
|
Surface Transforms
|
-88.2
|
-1.2
|
Jersey Oil & Gas
|
-27.0
|
-0.8
|
Serica Energy
|
-20.1
|
-0.7
|
Oxford Nanopore
|
-52.0
|
-0.4
|
Vanquis Banking Group
|
-57.7
|
-0.3
|
Investment activity and gearing
During the period three new
positions were purchased - London property owner Shaftesbury Capital, retailer
DFS Furniture and International Distribution Services
(previously Royal Mail). We also added to positions in existing
holdings such as Scottish housebuilder Springfield Properties, broadcaster
STV and earlier stage
businesses including fuel cell companies Ceres Power and AFC Energy. These were funded from
sales including Hollywood Bowl (following good performance), Legal
& General (on better valuation opportunities elsewhere) and ZOO
Digital (following disappointing trading).
At the end of April gearing of 9.5%
was approximately unchanged from where it was at financial year end
(9.6%).
Earnings and dividends
The earnings in the period were
2.8p, which compares to 3.2p (adjusted for the share split) in the
same period last year. The fall in earnings was partly a result of
the sales during the period such as Legal & General and Hollywood Bowl. More broadly we are
seeing an increasing number of smaller companies opt for share
buybacks (rather than special dividends in particular). In the Fund
Managers' view this reflects a frustration among company boards at
the valuation levels many companies are trading at, as well as a
growing portion of US shareholders on company registers who tend to
favour buybacks over dividends.
Discount
The discount during the period
varied from 10.3% to 17.8%, ending the period at 11.9%. This
compares to a 11.7% average discount for the AIC UK All Companies
Sector at period end and a 16.6% discount for the AIC UK Smaller
Companies Sector at period end.
Outlook
In the short term, there will be
some uncertainty ahead of the UK's General Election in July.
Looking further ahead however, it is likely that UK interest rates
will be reduced in the coming months. The benefit to the economy
could be a return of confidence. Corporate capital spend is more
likely to be actioned by companies as they become more confident
that the recession is behind them. For the consumer, the period of
restraint could ease and retail spend could pick up from depressed
levels in some categories. On top of this, there is a natural
replacement cycle picking up in the economy as major projects which
had been put on hold come through. The overall effect could be for
UK economic growth to gain traction over and above what is in
economists' forecasts. The increased activity could feed through to
a steeper than expected pick-up in corporate earnings, as the cost
base of many companies is very controlled as a result of the
disciplines learned in a testing period. The increased profits
would be well received by investors and the very low valuations can
improve. This is an exciting cocktail for improved investor
returns. We believe the portfolio is positioned for the
better outlook.
Wendy Colquhoun
Chairman
19
June 2024
|
James Henderson and Laura Foll
Fund Managers
|
Principal Risks and Uncertainties
The principal risks and
uncertainties associated with the Company's business can be divided
into the following main areas:
•
investment activity and strategy;
•
shareholder base and voting on platforms;
•
financial instruments and the management of risk;
•
operational and cyber;
•
accounting, legal and regulatory; and
•
failure of Janus Henderson.
Detailed information on these risks
is given in the Strategic Report and in the Notes to the Financial
Statements in the Company's Annual Report for the year ended 31
October 2023.
In the view of the Board, these
principal risks and uncertainties at the year-end remain and are as
applicable to the remaining six months of the financial year as
they were to the six months under review.
Directors' Responsibility Statement
The Directors (listed in note 12)
confirm that, to the best of their knowledge:
a)
|
the condensed financial statements
for the half year ended 30 April 2024 have been prepared in
accordance with Financial Reporting Standard 104 Interim Financial
Reporting and give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company;
|
b)
|
this interim management report and
condensed financial statements include a fair review of the
information required by the Disclosure Guidance and Transparency
Rule 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the
remaining six months of the year); and
|
c)
|
this interim management report
includes a fair review of the information required by the
Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of
related party transactions and changes therein).
|
On
behalf of the Board
Wendy Colquhoun
Chairman
19
June 2024
Investment portfolio at 30 April 2024
Company
|
Valuation
£'000
|
% of
portfolio
|
Barclays
|
4,966
|
4.8
|
Rolls-Royce
|
4,474
|
4.3
|
Springfield Properties¹
|
3,217
|
3.1
|
Boku¹
|
3,142
|
3.0
|
HSBC
|
2,995
|
2.9
|
Rio Tinto
|
2,735
|
2.6
|
Standard Chartered
|
2,655
|
2.6
|
Anglo American
|
2,568
|
2.5
|
Next 15¹
|
2,541
|
2.5
|
Cohort¹
|
2,306
|
2.2
|
10
largest
|
31,599
|
30.5
|
Tracsis¹
|
2,210
|
2.1
|
NatWest
|
2,146
|
2.1
|
Serica Energy¹
|
2,139
|
2.1
|
Marks & Spencer
|
2,046
|
2.0
|
Shaftesbury Capital
|
2,021
|
1.9
|
Marshalls
|
2,014
|
1.9
|
Vertu Motors¹
|
2,010
|
1.9
|
Redcentric¹
|
2,004
|
1.9
|
Tesco
|
1,999
|
1.9
|
Morgan Advanced Materials
|
1,994
|
1.9
|
20
largest
|
52,182
|
50.2
|
SigmaRoc¹
|
1,956
|
1.9
|
Babcock
|
1,903
|
1.8
|
Jersey Oil & Gas¹
|
1,897
|
1.8
|
IQGeo¹
|
1,777
|
1.7
|
Aviva
|
1,681
|
1.6
|
Oxford Instruments
|
1,573
|
1.5
|
AFC Energy¹
|
1,546
|
1.5
|
GlaxoSmithKline
|
1,539
|
1.5
|
Kier
|
1,501
|
1.4
|
Flutter Entertainment
|
1,493
|
1.4
|
30
largest
|
69,048
|
66.3
|
Renold¹
|
1,458
|
1.4
|
STV
|
1,404
|
1.4
|
Van Elle¹
|
1,353
|
1.3
|
Workspace
|
1,220
|
1.2
|
Redde Northgate
|
1,142
|
1.1
|
M&G
|
1,106
|
1.1
|
IntegraFin Holdings
|
1,103
|
1.1
|
CML Microsystems¹
|
1,101
|
1.1
|
GB Group¹
|
1,079
|
1.0
|
Ricardo
|
1,042
|
1.0
|
40
largest
|
81,056
|
78.0
|
Senior
|
1,039
|
1.0
|
Direct Line Insurance
|
1,021
|
1.0
|
International Personal
Finance
|
936
|
0.9
|
The Gym Group
|
919
|
0.9
|
Halfords Group
|
905
|
0.9
|
Creo Medical¹
|
889
|
0.9
|
Johnson Matthey
|
878
|
0.8
|
Prudential
|
876
|
0.8
|
BT
|
872
|
0.8
|
Marks Electrical¹
|
811
|
0.8
|
50
largest
|
90,202
|
86.8
|
Premier Miton Group¹
|
802
|
0.8
|
RWS Holdings¹
|
801
|
0.8
|
Hvivo¹
|
798
|
0.8
|
ITM Power¹
|
749
|
0.7
|
Ceres Power
|
712
|
0.7
|
International Distributions
Services
|
677
|
0.7
|
IP Group
|
662
|
0.6
|
Deltic Energy¹
|
657
|
0.6
|
International Consolidated
Airlines
|
657
|
0.6
|
Jubilee Metals¹
|
618
|
0.6
|
60
largest
|
97,335
|
93.7
|
DFS Furniture
|
580
|
0.6
|
Accsys Technologies¹
|
564
|
0.5
|
Ilika¹
|
551
|
0.5
|
XP Power
|
544
|
0.5
|
Oxford Nanopore Technology
|
533
|
0.5
|
Westminister¹
|
532
|
0.5
|
Oxford Science
Enterprises2
|
483
|
0.5
|
Jadestone Energy¹
|
430
|
0.4
|
Reach
|
421
|
0.4
|
Tribal¹
|
359
|
0.3
|
70
largest
|
102,332
|
98.4
|
13
remaining (excluding cash and investments written down to
zero)
|
1,662
|
1.6
|
|
|
|
Total
|
103,994
|
100.0
|
1 Quoted on the Alternative Investment Market ('AIM')
2 Unlisted
Portfolio by market capitalisation at 30 April
2024
as a percentage of the portfolio
excluding cash
Index
|
FTSE All-Share Index
%
|
Portfolio
%
|
Greater than £2b
|
90.5
|
39.5
|
£1b - £2b
|
5.1
|
1.5
|
£500m - £1b
|
2.3
|
19.4
|
£200m - £500m
|
1.6
|
18.3
|
£100m - £200m
|
0.5
|
13.0
|
£50m - £100m
|
0.0
|
1.9
|
Less than £50m
|
0.0
|
5.9
|
Other
|
0.0
|
0.5
|
Total
|
100.0
|
100.0
|
Source: Factset
CONDENSED INCOME STATEMENT
|
(Unaudited)
Half Year
ended
30 April
2024
|
(Unaudited)
Half Year
ended
30 April
2023
|
(Audited)
Year
ended
31
October 2023
|
|
Revenue return
£'000
|
Capital return
£'000
|
Total
return
£'000
|
Revenue
return £'000
|
Capital
return £'000
|
Total
return £'000
|
Revenue
return £'000
|
Capital
return £'000
|
Total
return £'000
|
Gains/(losses) from investments held
through profit or loss
|
-
|
14,384
|
14,384
|
-
|
5,083
|
5,083
|
-
|
(9,892)
|
(9,892)
|
Investment income held at fair value
through profit or loss
|
1,374
|
-
|
1,374
|
1,616
|
-
|
1,616
|
3,269
|
-
|
3,269
|
Interest receivable and other
income
|
134
|
-
|
134
|
108
|
-
|
108
|
242
|
-
|
242
|
Gross revenue and capital
gains/(losses)
|
1,508
|
14,384
|
15,892
|
1,724
|
5,083
|
6,807
|
3,511
|
(9,892)
|
(6,381)
|
Management fee (note 2)
|
(77)
|
(178)
|
(255)
|
(78)
|
(183)
|
(261)
|
(151)
|
(351)
|
(502)
|
Administrative expenses
|
(222)
|
-
|
(222)
|
(257)
|
-
|
(257)
|
(466)
|
-
|
(466)
|
Net
return/(loss) before finance costs and taxation
|
1,209
|
14,206
|
15,415
|
1,389
|
4,900
|
6,289
|
2,894
|
(10,243)
|
(7,349)
|
Finance costs
|
(102)
|
(239)
|
(341)
|
(115)
|
(269)
|
(384)
|
(245)
|
(572)
|
(817)
|
Net
return/(loss) before taxation
|
1,107
|
13,967
|
15,074
|
1,274
|
4,631
|
5,905
|
2,649
|
(10,815)
|
(8,166)
|
Taxation on net return
|
-
|
-
|
-
|
-
|
-
|
-
|
(6)
|
-
|
(6)
|
Net
return/(loss) after taxation
|
1,107
|
13,967
|
15,074
|
1,274
|
4,631
|
5,905
|
2,643
|
(10,815)
|
(8,172)
|
Return/(loss) per ordinary share - basic and diluted (note
4)*
|
2.80p
|
35.37p
|
38.17p
|
3.23p
|
11.73p
|
14.95p
|
6.69p
|
(27.38p)
|
(20.69p)
|
*Comparative figures for the periods
ended 30 April 2023 and 31 October 2023 have been restated due to
the sub-division of each ordinary share of 25p into five ordinary
shares of 5p each on 11 March 2024.
The total columns of this statement
represent the Income Statement of the Company, prepared in
accordance with FRS 104.
All revenue and capital items in the
above statement derive from continuing operations. The revenue and
capital return columns are supplementary to this and are prepared
under guidance published by the Association of Investment
Companies. The Company had no recognised gains or losses other than
those disclosed in the Income Statement and Statement of Changes in
Equity. The accompanying notes are an integral part of the
condensed financial statements.
CONDENSED STATEMENT OF
CHANGES IN EQUITY
|
(Unaudited)
Half Year ended 30 April
2024
|
|
Called up share capital
£'000
|
Share premium account
£'000
|
Capital redemption reserve
£'000
|
Other capital
reserves
£'000
|
Revenue reserve
£'000
|
Total shareholders'
funds
£'000
|
At 1
November 2023
|
2,000
|
14,838
|
2,431
|
59,924
|
2,572
|
81,765
|
Costs relating to sub-division of shares
|
-
|
-
|
-
|
(17)
|
-
|
(17)
|
Ordinary dividends paid
|
-
|
-
|
-
|
-
|
(1,619)
|
(1,619)
|
Return of unclaimed dividends
|
-
|
-
|
-
|
-
|
2
|
2
|
Net
return after taxation
|
-
|
-
|
-
|
13,967
|
1,107
|
15,074
|
At
30 April 2024
|
2,000
|
14,838
|
2,431
|
73,874
|
2,062
|
95,205
|
|
|
|
|
|
|
|
|
(Unaudited)
Half Year
ended 30 April 2023
|
|
Called up
share capital £'000
|
Share
premium account £'000
|
Capital
redemption reserve £'000
|
Other
capital reserves
£'000
|
Revenue
reserve £'000
|
Total
shareholders' funds
£'000
|
At 1 November 2022
|
2,000
|
14,838
|
2,431
|
70,739
|
2,693
|
92,701
|
Ordinary dividends paid
|
-
|
-
|
-
|
-
|
(1,580)
|
(1,580)
|
Net return after taxation
|
-
|
-
|
-
|
4,631
|
1,274
|
5,905
|
At 30 April 2023
|
2,000
|
14,838
|
2,431
|
75,370
|
2,387
|
97,026
|
|
|
|
|
|
|
|
|
(Audited)
Year
ended 31 October 2023
|
|
Called up
share capital £'000
|
Share
premium account £'000
|
Capital
redemption reserve £'000
|
Other
capital reserves
£'000
|
Revenue
reserve £'000
|
Total
shareholders' funds
£'000
|
At 1 November 2022
|
2,000
|
14,838
|
2,431
|
70,739
|
2,693
|
92,701
|
Ordinary dividends paid
|
-
|
-
|
-
|
-
|
(2,764)
|
(2,764)
|
Net (loss)/return after
taxation
|
-
|
-
|
-
|
(10,815)
|
2,643
|
(8,172)
|
At 31 October 2023
|
2,000
|
14,838
|
2,431
|
59,924
|
2,572
|
81,765
|
The accompanying notes are an
integral part of these condensed financial statements.
CONDENSED STATEMENT OF FINANCIAL POSITION
|
(Unaudited)
Half year ended 30 April
2024
£'000
|
(Unaudited)
Half year
ended
30 April
2023
£'000
|
(Audited)
Year
ended
31 October
2023 £'000
|
Investments held at fair value through profit or
loss
|
|
|
|
Listed at market value
|
61,055
|
58,619
|
50,270
|
Quoted on AIM at market
value
|
42,456
|
52,009
|
38,703
|
Unlisted at market value
|
483
|
540
|
513
|
|
103,994
|
111,168
|
89,486
|
Current assets
|
|
|
|
Investments held at fair value
through profit or loss
|
2
|
2
|
2
|
Debtors
|
648
|
591
|
487
|
Cash at bank and in hand
|
2,179
|
2,710
|
2,315
|
|
2,829
|
3,303
|
2,804
|
|
|
|
|
Creditors: amounts falling due
within one year
|
|
|
|
Bank loans
|
(11,211)
|
(17,127)
|
(10,169)
|
Other creditors
|
(407)
|
(318)
|
(356)
|
|
|
|
|
Net
current liabilities
|
(8,789)
|
(14,142)
|
(7,721)
|
|
|
|
|
Net
assets
|
95,205
|
97,026
|
81,765
|
|
|
|
|
Capital and reserves
|
|
|
|
Called up share capital (note
6)
|
2,000
|
2,000
|
2,000
|
Share premium account
|
14,838
|
14,838
|
14,838
|
Capital redemption reserve
|
2,431
|
2,431
|
2,431
|
Other capital reserves
|
73,874
|
75,370
|
59,924
|
Revenue reserves
|
2,062
|
2,387
|
2,572
|
|
|
|
|
Total shareholders' funds
|
95,205
|
97,026
|
81,765
|
|
|
|
|
Net
asset value per ordinary share - basic and diluted (note
7)*
|
241.1p
|
245.7p
|
207.0p
|
|
|
|
|
*Comparative figures for the periods
ended 30 April 2023 and 31 October 2023 have been restated due to
the sub-division of each ordinary share of 25p into five ordinary
shares of 5p each on 11 March 2024
The accompanying notes are an
integral part of these condensed financial statements.
CONDENSED STATEMENT OF CASH FLOWS
|
(Unaudited)
Half Year
ended
30 April
2024
£'000
|
(Unaudited)
Half Year
ended
30 April
2023
£'000
|
(Audited)
Year
ended
31 October
2023
£'000
|
Cash
flows from operating activities
|
|
|
|
Net return/(loss) before
taxation
|
15,074
|
5,905
|
(8,166)
|
Add back: finance costs
|
341
|
384
|
817
|
Add: (gains)/losses on investments
held at fair value through profit or loss
|
(14,384)
|
(5,083)
|
9,892
|
Increase in debtors
|
(264)
|
(375)
|
(81)
|
Decrease in creditors
|
(54)
|
(39)
|
(12)
|
Net
cash inflow from operating activities
|
713
|
792
|
2,450
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
Purchase of investments
|
(7,168)
|
(6,420)
|
(7,527)
|
Sale of investments
|
7,273
|
6,030
|
13,647
|
Net
cash inflow/(outflow) from investing activities
|
105
|
(390)
|
6,120
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
Equity dividends paid
|
(1,617)
|
(1,580)
|
(2,764)
|
Costs relating to sub-division of
shares
|
(17)
|
-
|
-
|
Net loans drawn
down/(repaid)
|
1,042
|
3,021
|
(3,937)
|
Interest paid
|
(362)
|
(352)
|
(773)
|
Net
cash (outflow)/inflow from financing activities
|
(954)
|
1,089
|
(7,474)
|
Net
(decrease)/increase in cash and cash equivalents
|
(136)
|
1,491
|
1,096
|
|
|
|
|
Cash and cash equivalents at start of
year
|
2,315
|
1,219
|
1,219
|
|
|
|
|
Cash
and cash equivalents at end of period
|
2,179
|
2,710
|
2,315
|
|
|
|
|
Comprising:
|
|
|
|
Cash at bank
|
2,179
|
2,710
|
2,315
|
|
|
|
|
The accompanying notes are an
integral part of these condensed financial statements.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1
|
Accounting policies - basis of preparation
|
|
The condensed set of financial
statements has been prepared in accordance with FRS 104, Interim
Financial Reporting, FRS 102, the Financial Reporting Standard
applicable in the UK and Republic of Ireland, and the Statement of
Recommended Practice for "Financial Statements of Investment Trust
Companies and Venture Capital Trusts", which was updated by the
Association of Investment Companies in July 2022.
For the period under review, the
Company's accounting policies have not varied from those described
in the annual report for the year ended 31 October 2023.
A number of comparative figures for
the periods ended 30 April 2023 and 31 October 2023 that are
included within these results have been restated due to the
sub-division of each ordinary share of 25p into five ordinary
shares of 5p each on 11 March 2024.
These financial statements have been
neither audited nor reviewed by the Company's auditor.
|
2
|
Management fee
|
|
Janus Henderson Fund Management UK
Limited is appointed to act as the Company's Alternative Investment
Fund Manager. Janus Henderson Fund Management UK Limited delegates
investment management services to Janus Henderson Investors UK
Limited. References to Janus Henderson or the Manager within these
results refer to the services provided by both Janus Henderson Fund
Management UK Limited and Janus Henderson Investors UK
Limited.
Management fees are charged in
accordance with the terms of the management agreement and provided
for when due. The base management fee is charged at 0.55% of
net assets per annum payable quarterly at a rate of 0.1375% based
on net assets at the end of the previous quarter. With effect
from 20 October 2023 the board agreed to remove the performance
fee. No performance fee was paid in the period to 30 April 2023 and
31 October 2023.
The Company allocates 70% of its
management fees and finance costs to the capital return of the
Income Statement with the remaining 30% being allocated to the
revenue return.
|
3
|
Dividends
|
|
On 7 March 2024, the Board declared
a first interim dividend of 1.5p* (2023: 1.5p*) per ordinary share
of 5p each, to be paid out of revenue on 20 June 2024 to
shareholders on the register of the Company at the close of
business on 17 May 2024. The cost of this
dividend will be £592,000 (2023: £592,000).
The Board has declared a second
interim dividend of 1.5p (2023: 1.5p*) per ordinary share of 5p
each, to be paid out of revenue on 20 September 2024 to
shareholders on the register of the Company at the close of
business on 16 August 2024. The ex-dividend date will be 15 August
2024. Based on the number of ordinary shares in issue on 19 June
2024, the cost of this dividend will be £592,000
(2023: £592,000).
No provision has been made for the
interim dividends in these condensed financial statements. The
third interim dividend of 1.5p* per ordinary share, paid on 15
December 2023 and the final dividend of 2.6p* per ordinary share,
paid on 22 March 2024 in respect of the year ended 31 October
2023, have been recognised as a distribution in this
period.
*Dividend rates have been restated
due to the sub-division of each ordinary share of 25p into five
ordinary shares of 5p each on 11 March 2024.
|
4
|
Return/(loss) per ordinary share - basic and
diluted
The return/(loss) per ordinary share
is based on the following figures:
|
|
(Unaudited)
Half Year
ended
30 April
2024
£'000
|
(Unaudited)
Half Year
ended
30 April
2023
£'000
|
(Audited)
Year
ended
31 October
2023
£'000
|
Revenue return
|
1,107
|
1,274
|
2,643
|
Capital return/(loss)
|
13,967
|
4,631
|
(10,815)
|
Total return/(loss)
|
15,074
|
5,905
|
(8,172)
|
|
|
|
|
Weighted average number of ordinary
shares in issue for the period*
|
39,491,875
|
39,491,875
|
39,491,875
|
|
|
|
|
Revenue return per ordinary
share*
|
2.80p
|
3.23p
|
6.69p
|
Capital return/(loss)per ordinary
share*
|
35.37p
|
11.73p
|
(27.38p)
|
Total return/(loss) per ordinary
share*
|
38.17p
|
14.96p
|
(20.69p)
|
|
*Comparative figures for the periods
ended 30 April 2023 and 31 October 2023 have been restated due to
the sub-division of each ordinary share of 25p into five ordinary
shares of 5p each on 11 March 2024.
The Company has no securities in
issue that could dilute the return per ordinary share. Therefore,
the basic and diluted returns per share are the same.
|
5
|
Investments held at fair value through profit or
loss
|
|
The table below analyses fair value
measurements for investments held at fair value through profit or
loss. These fair value measurements are categorised into different
levels in the fair value hierarchy based on the valuation
techniques used and are defined as follows under FRS
102:
Level 1:
|
valued using quoted prices in active
markets for identical assets
|
Level 2:
|
valued by reference to valuation
techniques using observable inputs other than quoted prices
included in Level 1
|
Level 3:
|
valued by reference to valuation
techniques using inputs that are not based on observable market
data
|
Investments held at fair value through profit or loss at 30
April 2024 (unaudited)
|
Level 1
£'000
|
Level 2
£'000
|
Level 3
£'000
|
Total
£'000
|
Investments
|
103,511
|
-
|
483
|
103,994
|
Current asset investments
|
2
|
-
|
-
|
2
|
Total
|
103,513
|
-
|
483
|
103,996
|
|
|
|
|
|
Investments held at fair value
through profit or loss at 30 April 2023 (unaudited)
|
Level
1
£'000
|
Level
2
£'000
|
Level
3
£'000
|
Total
£'000
|
Investments
|
110,628
|
-
|
540
|
111,168
|
Current asset investments
|
2
|
-
|
-
|
2
|
Total
|
110,630
|
-
|
540
|
111,170
|
|
|
|
|
|
Investments held at fair value
through profit or loss at 31 October 2023 (audited)
|
Level
1
£'000
|
Level
2
£'000
|
Level
3
£'000
|
Total
£'000
|
Investments
|
88,973
|
-
|
513
|
89,486
|
Current asset investments
|
2
|
-
|
-
|
2
|
Total
|
88,975
|
-
|
513
|
89,488
|
There have been no transfers between
levels of the fair value hierarchy during the period.
The valuation techniques used by the
Company are explained in the accounting policies note 1(d) in the
Company's Annual Report for the year ended 31 October
2023.
|
6
|
Called-up share capital
|
|
During the half year ended 30 April
2024, no shares were issued or repurchased (half year ended 30
April 2023 and year ended 31 October 2023: no shares issued or
repurchased). At 30 April 2024 there were 40,004,290 ordinary
shares of 5p each in issue (30 April 2023 and 31 October 2023:
40,004,290*) of which 512,415 were held in treasury (30 April 2023
and 31 October 2023: 512,415* shares held in treasury) resulting in
39,491,875 shares being entitled to a dividend (30 April 2023 and
31 October 2023: 39,491,875*).
*Comparative figures for the periods
ended 30 April 2023 and 31 October 2023 have been restated due to
the sub-division of each ordinary share of 25p into five ordinary
shares of 5p each on 11 March 2024
|
7
|
Net
asset value per ordinary share - basic and
diluted
|
|
Net asset value per ordinary share
is based on the net assets attributable to the ordinary shares of
£95,205,000 (30 April 2023: £97,026,000; 31 October 2023:
£81,765,000) and on the 39,491,875 ordinary shares of 5p each in
issue at 30 April 2024 (half year ended 30 April 2023 and year
ended 31 October 2023: 39,491,875*).
*Comparative figures for the periods
ended 30 April 2023 and 31 October 2023 have been restated due to
the sub-division of each ordinary share of 25p into five ordinary
shares of 5p each on 11 March 2024
|
8
|
Transaction costs
|
|
Purchase transaction costs for the
half year ended 30 April 20243 were £29,000 (30 April 2023:
£20,000; 31 October 2023: £24,000); these comprise mainly stamp
duty and commissions. Sale transaction costs for the half year
ended 30 April 2024 were £3,000 (30 April 2023: £1,000;
31 October 2023: £5,000); these comprise mainly
commissions.
|
9
|
Related party transactions
|
|
The Company's transactions with
related parties in the period under review were with the Directors
and the Manager. There were no material transactions between the
Company and its Directors during the half year other than amounts
paid to them in respect of expenses and remuneration for which
there are no outstanding amounts payable at the half year period
end. Directors' shareholdings as at 31 October 2023 are disclosed
in the Annual Report.
In relation to the provision of
services by the Manager, other than fees payable by the Company in
the ordinary course of business and the facilitation of marketing
activities with third parties, there were no material transactions
with the Manager affecting the financial position of the Company
during the half year period.
|
10
|
Going concern
|
|
The Company's Articles of
Association require that at the Annual General Meeting of the
Company held in 2008, and every third year thereafter, an ordinary
resolution be put to approve the continuation of the Company. The
next triennial continuation resolution will be put to the Annual
General Meeting in 2026. The assets of the Company consist almost
entirely of securities that are listed (or quoted on AIM) and are
readily realisable. Having assessed these factors and the principal
risks the Directors consider it appropriate to adopt the going
concern basis of accounting in preparing the financial statements.
Accordingly, the Directors believe that the Company has
adequate resources to continue in operational existence for at
least twelve months from the date of approval of the financial
statements.
|
|
|
|
| |
11
|
Net
debt reconciliation
|
|
|
Cash and cash
equivalents
£'000
|
Bank loans and overdraft
repayable within one year
£'000
|
Total
£'000
|
Net
debt as at 31 October 2023
|
2,315
|
(10,169)
|
(7,854)
|
Cash
flows
|
(136)
|
(1,042)
|
(1,178)
|
Net
debt as at 30 April 2024
|
2,179
|
(11,211)
|
(9,032)
|
|
|
|
|
|
Cash and
cash equivalents
£'000
|
Bank loans
and overdraft repayable within one year
£'000
|
Total
£'000
|
Net debt as at 31 October
2022
|
1,219
|
(14,106)
|
(12,887)
|
Cash flows
|
1,491
|
(3,021)
|
(1,530)
|
Net debt as at 30 April
2023
|
2,710
|
(17,127)
|
(14,417)
|
|
|
|
|
|
Cash and
cash equivalents
|
Bank loans
and overdraft repayable within one year
|
Total
|
|
£'000
|
£'000
|
£'000
|
Net debt as at 31 October
2022
|
1,219
|
(14,106)
|
(12,887)
|
Cash flows
|
1,096
|
3,937
|
5,033
|
Net debt as at 31 October
2023
|
2,315
|
(10,169)
|
(7,854)
|
|
|
|
|
|
12
|
General information
|
|
Company Status:
Henderson Opportunities Trust plc is
registered in England and Wales (No. 01940906), has its registered
office at 201 Bishopsgate, London EC2M 3AE and is listed on the
London Stock Exchange.
SEDOL/ISIN: GB00BSHRGN4 /
GB00BSHRGN41
London Stock Exchange (TIDM) Code:
HOT
Global Intermediary Identification
Number (GIIN): LVAHJH.99999.SL.826
Legal Entity Identifier (LEI):
2138005D884NPGHFQS77
Directors and Corporate Secretary:
The Directors of the Company are
Wendy Colquhoun (Chairman), Frances Daley (Audit and Risk Committee
Chairman), Davina Curling and Harry Morgan. The Corporate Secretary
is Janus Henderson Secretarial Services UK Limited, represented by
Melanie Stoner (Fellow of the Chartered Governance
Institute).
Website:
Details of the Company's share price
and net asset value, together with general information about the
Company, monthly factsheets and data, copies of announcements,
reports and details of general meetings can be found at
www.hendersonopportunitiestrust.com.
|
13
|
Comparative information
|
|
The financial information contained
in the half year report does not constitute statutory accounts as
defined in section 434 of the Companies Act 2006. The financial
information for the half year periods ended 30 April 2024 and 30
April 2023 has not been audited or reviewed by the Company's
auditors. The figures and financial information for the year ended
31 October 2023 are an extract based on the latest published
accounts and do not constitute statutory accounts for that year.
Those accounts have been delivered to the Registrar of Companies
and included the Independent Auditor's Report which was unqualified
and did not contain a statement under either section 498(2) or
498(3) of the Companies Act 2006.
A glossary of terms and details of
alternative performance measures can be found in the Annual Report
for the year ended 31 October 2023.
|
14
|
Half
Year Report
|
|
The half year report and an
abbreviated version (the 'Update') will shortly be available on the
Company's website or from the Company's registered office. The
Update will be posted to shareholders in June 2024.
|
For further information, please
contact:
|
|
James Henderson
Fund Manager
Janus Henderson Investors
Telephone: 020 7818 4370
|
Laura Foll
Fund Manager
Henderson Opportunities Trust
plc
Telephone: 020 7818 6364
|
|
|
Wendy Colquhoun
Chairman
Henderson Opportunities Trust
plc
Telephone: 020 7818 4082
|
Harriet Hall
PR Director, Investment
Trusts
Janus Henderson Investors
Telephone: 020 7818 2919
|
|
|
Dan Howe
Head of Investment Trusts
Janus Henderson Fund Management UK
Limited
Tel: 020 7818 4458
|
|
|
|
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) are
incorporated into, or form part of, this
announcement.