TIDMGIR
GARTMORE IRISH GROWTH FUND PLC
INTERIM REPORT FOR THE SIX MONTHS TO 30 SEPTEMBER 2009
INVESTMENT OBJECTIVE
The Company seeks to provide shareholders with long-term capital growth through
investment in quoted companies which are either incorporated in the Republic of
Ireland or Northern Ireland or, if elsewhere, derive the majority of their
turnover or profits from the Republic of Ireland or Northern Ireland or are
listed on the ISEQ Index.
It is considered that the Company, through the securities in which it invests,
offers an attractive and relatively direct means of investing in Ireland,
thereby giving exposure to:
- its attractive demographics;
- low corporation tax;
- an attractive English-speaking base for international investors, particularly
from the USA, to service the EU market;
- an attractive base from which Irish companies could develop international
business; and
- a pro-business Government and culture.
INVESTMENT POLICY
Asset Allocation:
The Company invests in quoted companies which are either incorporated in the
Republic of Ireland or Northern Ireland or, if elsewhere, derive the majority
of their turnover or profits from the Republic of Ireland or Northern Ireland
or are listed on the ISEQ Index. The majority of investments will be in
equities, although other forms of equity-related securities, including warrants
and convertibles, may be held. Cash and derivative instruments (such as futures
and options) may be used for efficient portfolio management and as part of
investment strategy, subject to the prior consent of the Board.
The Company's investments are not limited by reference to market
capitalisation, sector or weightings within the Republic of Ireland or
elsewhere. However, a sizeable part of the portfolio is usually held in stocks
of companies incorporated in the Republic of Ireland, since they represent a
majority of the Company's eligible investment universe.
Risk Diversification:
Portfolio risk is managed by investing in a diversified spread of investments.
There are generally approximately 40 holdings at any one time, and no single
holding will represent more than 15% of the net assets of the Company or more
than 15% of the investee company's issued share capital at the time of
acquisition.
The Company will not invest more than 15% of its gross assets in other listed
investment companies (including investment trusts).
Gearing:
The Manager is authorised to gear the portfolio to make additional investments.
Gearing can fluctuate between zero and 25% of shareholders' funds, with timing
determined on the basis of market circumstances and investment opportunities.
The level of gearing is regularly monitored by the Board. Alternatively, cash
is held when the Manager has negative views on share prices.
Previously, gearing has been achieved through the use of flexible borrowing
facilities. In the recent turbulence in banking markets in Ireland and in other
countries, the Company did not renew its borrowing facilities due to the
unacceptable terms. The Board has authorised the Manager to use contracts for
difference ("CFDs") for gearing purposes. The use of CFDs is subject to the
limits which applied when bank loan facilities were used, and total gearing
remains subject to a maximum of 25% of shareholders' funds.
Performance
Performance is compared with the Davy Mid-Cap Index, the ISEQ Index, the Hoare
Govett Smaller Companies Index (ex Investment Companies), the FTSE All-Share
Index and the FTSE Europe ex UK Index.
Directors
H P Sheridan (Chairman)
R A M Baillie
G R Caldwell
W R Cotter
P K Cunneen (appointed on 18 November 2009)
R A Milliken
Advisers
Investment Manager:
Gartmore Investment Limited
Gartmore House
8 Fenchurch Place
London EC3M 4PB
Telephone: 020 7782 2000
Secretary and Registered Office
Capita Sinclair Henderson Limited
Beaufort House
51 New North Road
Exeter
Devon EX4 4EP
Telephone: 01392 412122
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone: 0870 707 1025
www.investorcentre.co.uk
Registered No. 3031629
England and Wales
Gartmore Irish Growth Fund PLC is managed by Gartmore Investment Limited
(`GIL') which is authorised and regulated by the Financial Services Authority.
OVERVIEW FOR THE SIX MONTHS TO 30 SEPTEMBER 2009
- Net asset value per Ordinary share increased by 81.78% compared with an
increase in sterling terms of 50.53% for the ISEQ Index and 149.01% for the
Davy Mid-Cap Index.
- Tender offer for 25.5% of the Company's shares completed in October at a
repurchase cost of GBP20,386,000, resulting in an uplift of approximately 22p per
share for continuing shareholders.
CHAIRMAN'S STATEMENT FOR THE SIX MONTHS TO 30 SEPTEMBER 2009
Over the past six months we have seen a welcome turnaround in the performance
of the Irish stock market and world equity markets in general, despite mixed
economic news.
Although Ireland's economy remained weak, equity markets anticipated improving
prospects.
In sterling terms, the net asset value ("NAV") of the Company's Ordinary shares
rose by 81.8% over the six months to 30 September 2009. This compares with
growth in sterling terms of 50.5% for the ISEQ Index and 149.0% for the Davy
Mid-Cap Index (the reduction in the market capitalisation of Irish banks
resulted in their forming part of the Davy Mid-Cap Index from 2 April 2009.
During the following months, the rapid recovery in Irish banks' share prices
had a significant effect on the performance of the Davy Mid-Cap Index,
inflating its returns well above those of the remainder of the universe). The
increases in the Irish market were more pronounced than in the UK main market,
with the FTSE All-Share Index rising 32.1%, although UK small-caps produced
stronger returns and the Hoare Govett Smaller Companies (excluding Investment
Companies) Index was up by 52.1%.
The capital return to shareholders in the six month period was 368.13p. All
costs, other than the costs of investment transactions, are charged in full to
revenue. The revenue return for shareholders in the period was 2.80p and the
total return for the half-year amounted to 370.93p.
At 30 September 2009, the net asset value per share stood at 808.77p, compared
with 444.91p at 31 March 2009. The share price increased by 106% to end the
period at 720p, representing a discount to NAV of 11%.
In August the Company announced a tender offer for up to 30% of the Company's
issued share capital. This was approved by shareholders in early October and
resulted in 25.5% of the shares then in issue being tendered, at a repurchase
cost of GBP20,386,000, providing an uplift of approximately 22p per share for
continuing shareholders. In addition, 473,900 shares were repurchased for
cancellation in the six months and the Company intends to make further
purchases when stock becomes available at attractive prices.
I am pleased to welcome Mr Patrick Cunneen as a Director of the Company with
effect from 18 November 2009. He brings a wealth of relevant experience to our
deliberations having been a former Managing Director of AIB Investment Managers
and Investment Director of New Ireland Assurance Company Limited.
Since 30 September 2009 markets have remained very volatile and some of the
gains have been eroded. Irish domestic demand remains weak, but many other
economies are now seeing renewed growth. Ireland's multinational businesses
listed on the Irish stock market stand to benefit from this global recovery and
should deliver strong returns. Over the medium term the key drivers of the
Irish economy should result in renewed growth.
Harry Sheridan
Chairman
30 November 2009
MANAGER'S REVIEW FOR THE SIX MONTHS TO 30 SEPTEMBER 2009
Equity markets globally delivered strong returns over the past six months, and
Irish equities were no exception. A number of cyclically-exposed sectors
performed well, especially sectors that had been out of favour. Irish banks
performed particularly well in anticipation of government intervention to
increase balance sheet liquidity.
An overweight exposure to financials contributed strongly over the period, with
banks delivering remarkable gains, albeit from a very low starting point. Low
exposure to construction & materials and pharmaceuticals & biotechnology
helped, with these sectors underperforming relative to others.
At the stock level, our underweight exposure to CRH, the building materials
firm, strongly supported performance relative to the Irish market indices over
the six months. The share price remained broadly level in a market of rising
share prices after a warning over first-half profits. We continued to make
further reductions in our exposure following sales during the first quarter of
the year.
Among our overweight positions Bank of Ireland and Dragon Oil were strong
performers. We increased our exposure to Bank of Ireland at depressed
valuations during the second quarter on its potential to strengthen its capital
base. We continued to add to our stake during July and August, but during
September took profits after very strong gains. Bank of Ireland remains one of
our larger positions.
Our holding in the oil & gas firm Dragon Oil also made a strongly positive
contribution to returns. During April, Dragon cheered the market with news of a
leap in production, though a bigger price surge was to come in early June after
Emirates National Oil, already Dragon's majority owner, announced that it had
made an approach to acquire the remainder of the shares. We have since sold our
stake at a good profit.
Worldspreads Group, which offers both financial and sports spread bets,
performed poorly over the period and was the largest detractor from returns. We
purchased a stake last year for its growth potential and strong management, and
despite the flat share price we continue to view its prospects positively.
Prospects
The recovery of the Irish economy may take some time, although we believe that
the outlook for Irish equities is attractive for the following reasons:
First, the scale of the fall in the Irish stock market was greater than in most
others. This reflected the severity of the downturn in the Irish economy which
was proportionally greater than in other countries. Therefore, the scale of
potential recovery from the lows could be argued to be somewhat greater.
Certainly, it is believed that several businesses quoted in Ireland have been
overlooked by portfolio managers, in part because of their Irish incorporation.
This is particularly true of some of the more internationally-focused
businesses which have prospects that are closely linked to other regions.
Secondly, some Irish businesses with attractive growth prospects and good
balance sheets have chosen not to pay dividends to shareholders. We believe
that the attitude to dividends is changing and that in time this will be
reflected in a greater willingness by successful companies to pay growing
dividends. As this process becomes recognised, we anticipate that many of these
companies will perform well.
Gervais Williams
Gartmore Investment Limited
30 November 2009
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that, to the best of their knowledge, the condensed set
of financial statements for the six months to 30 September 2009, which has been
prepared in accordance with IAS 34 as adopted by the European Union, gives a
true and fair view of the assets, liabilities and financial position of the
Company.
The principal risks and uncertainties for the remaining six months of the
financial year are substantially unchanged since the date of the annual report
for the year ended 31 March 2009 and continue to be as set out in that report.
The Directors confirm also that the Chairman's Statement, Manager's Review and
the condensed financial statements include a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements,
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related-party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the Company during the period, and any changes in the
related-party transactions described in the last annual report that could do
so.
On behalf of the Board
Harry Sheridan
Chairman
30 November 2009
FINANCIAL SUMMARY
At 30 At 31 March Increase
September 200 2009
9 %
Net assets attributable to Ordinary GBP84,876m GBP48,799m 73.93
shares
Net asset value per Ordinary share 808.77p 444.91p 81.78
ISEQ Index * 3,059.16 2,032.28 50.53
FTSE All-Share Index 2,620.00 1,984.17 32.05
Davy Mid-Cap Index * 2,754.46 1,106.15 149.01
Hoare Govett Smaller Companies Index 3,557.66 2,338.72 52.12
(ex Investment Companies)
Mid-market price per Ordinary share 720.00p 349.00p 106.30
* Sterling adjusted
RETURN PER ORDINARY SHARE
Six months to Year to Six months to
30 September 31 March 2009 30 September
2009 2008
pence pence pence
Return per Ordinary share:
Capital 368.13 (463.43) (294.99)
Revenue 2.80 12.84 2.83
Total 370.93 (450.59) (292.16)
Number of shares Number of Number of shares
shares
Weighted average Ordinary 10,856,035 11,999,305 12,594,895
shares in issue
This financial information has been prepared in accordance with International
Financial Reporting Standards ("IFRS").
CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited)
to 30 September 2009
Six months to 30 September 2009
Note Revenue Capital Total
GBP'000 GBP'000 GBP'000
Gains on investments at fair value - 40,551 40,551
Exchange losses - (53) (53)
Net investment result - 40,498 40,498
Total income 4 796 - 796
Expenses
Investment management fee (348) - (348)
Cost of investment transactions - (504) (504)
Other expenses (178) - (178)
Total expenses (526) (504) (1,030)
Profit before finance costs and 270 39,994 40,264
taxation
Finance costs - - -
Profit before taxation 270 39,994 40,264
Taxation credit/(charge) 2 34 (30) 4
Profit and total comprehensive 304 39,964 40,268
income for the period
Return per Ordinary share 5 2.80p 368.13p 370.93p
The Group does not have any income or expense that is not included in profit
for the period, and therefore the "Profit for the period" is also the "Total
comprehensive income for the period", as defined in International Accounting
Standard 1 (revised). All of the profit for the period and the total
comprehensive income for the period is attributed to the Shareholders of the
Group.
The total column of this statement is the statement of comprehensive income of
the Group which incorporates the trading subsidiary, Gartmore Irish Smaller
Companies Investment Limited, prepared under IFRS. The supplementary revenue
and capital return columns are presented for information purposes as
recommended by the Statement of Recommended Practice issued by the Association
of Investment Companies ("AIC"). All revenue and capital items in the above
statement derive from continuing operations. These accounts are unaudited and
are not the Group's statutory accounts.
CONDENSED CONSOLIDATED INCOME STATEMENT (Audited)
to 31 March 2009
Year to 31 March 2009
Note Revenue Capital Total
GBP'000 GBP'000 GBP'000
Losses on investments at fair value - (55,133) (55,133)
Exchange gains - 607 607
Net investment result - (54,526) (54,526)
Total income 4 2,148 - 2,148
Expenses
Investment management fee (732) - (732)
Recovery of VAT on management fees 933 - 933
Cost of investment transactions - (1,052) (1,052)
Other expenses (376) - (376)
Total expenses (175) (1,052) (1,227)
Profit/(loss) before finance costs 1,973 (55,578) (53,605)
and taxation
Finance costs (23) - (23)
Profit/(loss) before taxation 1,950 (55,578) (53,628)
Taxation credit/(charge) 2 (409) (31) (440)
Profit/(loss) and total 1,541 (55,609) (54,068)
comprehensive income for the year
Return per Ordinary share 5 12.84p (463.43)p (450.59)p
The Group does not have any income or expense that is not included in profit/
(loss) for the year, and therefore the "Profit/(loss) for the year" is also the
"Total comprehensive income for the year", as defined in International
Accounting Standard 1 (revised). All of the profit for the year and the total
comprehensive income for the year is attributed to the Shareholders of the
Group.
The total column of this statement is the statement of comprehensive income of
the Group which incorporates the trading subsidiary, Gartmore Irish Smaller
Companies Investment Limited, prepared under IFRS. The supplementary revenue
and capital return columns are presented for information purposes as
recommended by the Statement of Recommended Practice issued by the AIC. All
revenue and capital items in the above statement derive from continuing
operations.
CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited)
to 30 September 2008
Six months to 30 September 2008
Note Revenue Capital Total
GBP'000 GBP'000 GBP'000
Losses on investments at fair value - (36,492) (36,492)
Exchange losses - (59) (59)
Net investment result - (36,551) (36,551)
Total income 4 1,044 - 1,044
Expenses
Investment management fee (475) - (475)
Cost of investment transactions - (603) (603)
Other expenses (197) - (197)
Total expenses (672) (603) (1,275)
Profit/(loss) before finance costs 372 (37,154) (36,782)
and taxation
Finance costs (16) - (16)
Profit/(loss) before taxation 356 (37,154) (36,798)
Taxation 2 - - -
Profit/(loss) and total 356 (37,154) (36,798)
comprehensive income for the period
Return per Ordinary share 5 2.83p (294.99)p (292.16)p
The Group does not have any income or expense that is not included in profit/
(loss) for the period, and therefore the "Profit/(loss) for the period" is also
the "Total comprehensive income for the period", as defined in International
Accounting Standard 1 (revised). All of the profit for the period and the total
comprehensive income for the period is attributed to the Shareholders of the
Group.
The total column of this statement is the statement of comprehensive income of
the Group which incorporates the trading subsidiary, Gartmore Irish Smaller
Companies Investment Limited, prepared under IFRS. The supplementary revenue
and capital return columns are presented for information purposes as
recommended by the Statement of Recommended Practice issued by the AIC. All
revenue and capital items in the above statement derive from continuing
operations. These accounts are unaudited and are not the Group's statutory
accounts.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)
for the six months to 30 September 2009
Share Share Special Capital Capital Retained Total
capital premium reserve redemption reserve earnings
account reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Six months to
30 September
2009
31 March 2009 2,742 1,101 16,645 3,036 22,869 2,406 48,799
Net profit after - - - - 39,964 304 40,268
taxation for the
period
Dividends paid - - - - - (1,316) (1,316)
Shares purchased (118) - (2,852) 118 - - (2,852)
for cancellation
Tender offer - - - - (23) - (23)
costs
30 September 2,624 1,101 13,793 3,154 62,810 1,394 84,876
2009
Year to
31 March 2009
(audited)
31 March 2008 3,247 1,101 16,645 2,531 89,220 995 113,739
Net (loss)/ - - - - (55,609) 1,541 (54,068)
profit after
taxation for the
year
Shares purchased (505) - - 505 (10,742) - (10,742)
for cancellation
Dividends paid - - - - - (130) (130)
31 March 2009 2,742 1,101 16,645 3,036 22,869 2,406 48,799
Six months to
30 September
2008
31 March 2008 3,247 1,101 16,645 2,531 89,220 995 113,739
Net (loss)/ - - - - (37,154) 356 (36,798)
profit after
taxation for the
period
Dividends paid - - - - - (130) (130)
Shares purchased (250) - - 250 (6,582) - (6,582)
for cancellation
30 September 2,997 1,101 16,645 2,781 45,484 1,221 70,229
2008
These accounts have been prepared under IFRS.
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
as at 30 September 2009
Note 30 September 31 March 30
2009 2009 September
(audited) 2008
GBP'000 GBP'000 GBP'000
Non-current assets
Investments at fair value 6 66,498 46,469 70,861
through profit or loss
Current assets
Stock of investments 46 - -
Trade and other 2,410 406 2,096
receivables
Cash and cash equivalents 16,784 4,588 1,300
19,240 4,994 3,396
Total assets 85,738 51,463 74,257
Current liabilities
Trade and other payables (862) (2,594) (4,023)
(862) (2,594) (4,023)
Total assets less current 84,876 48,869 70,234
liabilities
Non-current liabilities
Deferred tax liabilities - (70) (5)
Total liabilities (862) (2,664) (4,028)
Net assets 84,876 48,799 70,229
Represented by:
Share capital 2,624 2,742 2,997
Share premium account 1,101 1,101 1,101
Special reserve 13,793 16,645 16,645
Capital redemption 3,154 3,036 2,781
reserve
Capital reserve 62,810 22,869 45,484
Retained earnings 1,394 2,406 1,221
Total equity 84,876 48,799 70,229
Net asset value per 808.77p 444.91p 585.83p
Ordinary share
Cash and cash equivalents represented 20.2% of the portfolio at 30 September
2009 (1.8% at 30 September 2008 and 9.0% at 31 March 2009). The significant
increase in cash and cash equivalents during the period was arranged for the
funding of the tender offer in October 2009 - see above.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Unaudited)
for the six months to 30 September 2009
Six months Year to Six months to
to
31 March 30 September
30 September
2009 2008
2009
(audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Consolidated profit/(loss) before 40,264 (53,628) (36,798)
tax
Adjustments to reconcile net
profit/(loss) before tax to net
cash flows from operating
activities:
(Gains)/losses on investments (40,047) 56,185 37,095
Exchange losses/(gains) 53 (607) 59
Finance costs - 23 16
Increase in stocks (46) - -
Increase/(decrease) in trade and 83 (219) (201)
other payables
Decrease in trade and other 154 267 527
receivables
Purchases of investments (27,327) (74,437) (41,810)
Sales of investments 43,546 80,629 42,634
Revaluation of foreign currency (146) 505 (109)
balances
Net cash flows generated from 16,534 8,718 1,413
operating activities
Taxation
Taxation paid - (6) -
Cash flows from financing
activities
Equity dividends paid (1,316) (130) (130)
Cost of share repurchases (3,030) (11,279) (7,269)
Interest on bank loan - ( 8) (7)
Net cash flows used in financing (4,346) (11,417) (7,406)
activities
Increase/(decrease) in cash and 12,188 (2,705) (5,993)
cash equivalents
Net cash and cash equivalents at 4,588 7,293 7,293
start of period
Net cash and cash equivalents at 16,776 4,588 1,300
end of period
NOTES TO THE ACCOUNTS AT 30 SEPTEMBER 2009
1. Basis of Preparation and Accounting Policies
The condensed consolidated financial statements comprise the unaudited results
of the Company and its subsidiary, Gartmore Irish Smaller Companies Investment
Limited, for the six months to 30 September 2009, and do not constitute
statutory accounts under the Companies Act 2006. The financial information for
the six months ended 30 September 2009 and 30 September 2008 has not been
audited nor reviewed by the Company's Auditor. Full statutory accounts for the
year to 31 March 2009 included an unqualified audit report and did not contain
a statement required under section 237(2) or (3) of the Companies Act 1985 and
were filed with the Registrar of Companies on 9 September 2009.
The consolidated financial statements have been prepared on a going concern
basis and on the basis of the accounting policies set out in the statutory
accounts for the year to 31 March 2009, in accordance with IFRS as adopted by
the European Union. There have been no changes to the accounting policies since
31 March 2009. The information is presented in pounds sterling, the currency of
the Group's domicile.
2. Taxation
30 September 2009 31 March 2009
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
a) Analysis of charge in
period:
Corporation tax charge 36 30 66 390 31 421
Total current tax charge 36 30 66 390 31 421
for period
Deferred tax (credit)/ (70) - (70) 19 - 19
charge *
Total deferred tax (70) - (70) 19 - 19
(credit)/charge for
period
Total tax (credit)/charge (34) 30 (4) 409 31 440
for period (see 2b)
30 September 2008
Revenue Capital Total
GBP'000 GBP'000 GBP'000
a) Analysis of charge in
period:
Corporation tax charge 46 - 46
Total current tax charge for 46 - 46
period
Deferred tax credit* (46) - (46)
Total deferred tax (credit)/ (46) - (46)
charge for period
Total tax (credit)/charge for - - -
period see (2b)
* The deferred tax credit for the period of GBP70,000 is the reversal of the
charge at 31 March 2009 in respect of outstanding overseas dividends. No charge
is required at 30 September 2009 as all overseas dividends outstanding at that
date are now non-taxable.
b) Factors affecting current taxation charge:
The tax assessed on the profit/(loss) of the period is lower than the rate of
corporation tax of 28% (31 March 2009: 28% and 30 September 2008: 21%). The
differences are explained below:
30 September 31 March 30 September
2009 2009 2008
GBP'000 GBP'000 GBP'000
Profit/(loss) before taxation 40,264 (53,628) (36,798)
Corporation tax 28% (31 March 2009: 11,274 (15,016) (7,728)
28% 30 September 2008: 21%)
Effects of:
Non-taxable UK dividends (6) (14) (11)
Non-taxable overseas dividends (99) - -
Expenses not deductible for tax - 4 2
purposes
Accrued income taxable on receipt - - 97
Movement in deferred tax rate - (3) -
Proceeds from sale of redeemable 30 31 -
shares
Marginal relief (5) - -
Utilisation of brought forward - (130) (163)
losses
Prior year adjustment - 6 -
Non-taxable items in capital (11,198) 15,562 7,803
Total tax (credit)/charge for the (4) 440 -
period (2a)
Due to the Company's status as an investment trust, and the intention to
continue meeting the conditions required to obtain approval to retain that
status in the foreseeable future, the Company has not provided deferred tax on
any capital gains and losses arising on the revaluation or disposal of
investments.
3. Dividends Paid
During the period, a final dividend of 1.27p together with a special dividend
of 10.88p (2008: final dividend of 1.06p) per Ordinary share amounting to GBP
1,316,000 (2008: GBP130,000) was paid to Shareholders in respect of the year
ended 31 March 2009.
4. Dividends and Other Income
Six months to Year to Six months to
30 September 31 March 30 September
2009 2009 2008
GBP'000 GBP'000 GBP'000
Revenue:
Income from listed investments:
Franked dividend income 23 51 51
Unfranked investment income 655 1,785 828
Dealing gains of subsidiary 114 - -
792 1,836 879
Interest on deposits 4 171 165
Other income - interest received on - 141 -
VAT refunded on investment
management fees
796 2,148 1,044
5. Return per Ordinary Share
Six months to Year to 31 March Six months to
30 September 2009 2009 30 September 2008
GBP'000 per share GBP'000 per share GBP'000 per share
Capital return 39,964 368.13p (55,609) (463.43)p (37,154) (294.99)p
Revenue return 304 2.80p 1,541 12.84p 356 2.83p
Total return 40,628 370.93p (54,068) (450.59)p (36,798) (292.16)p
Weighted 10,856,035 11,999,305 12,594,895
average
Ordinary
shares in
issue
6. Investments held at Fair Value through Profit or Loss
Six months to Year to Six months to
30 September 31 March 30 September
2009 2009 2008
GBP'000 GBP'000 GBP'000
United Kingdom 5,103 2,613 3,613
Republic of Ireland 61,395 43,856 67,248
Total investments 66,498 46,469 70,861
7. Share Capital
During the six-month period to 30 September 2009, the Company repurchased and
cancelled 473,900 Ordinary shares, at a cost of GBP2,852,000. This reduced the
number of Ordinary shares in issue from 10,968,342 to 10,494,442.
Since the period end, a further 2,758,489 Ordinary Shares have been tendered at
a cost of GBP20,386,000 and a further 192,281 Ordinary shares repurchased and
cancelled at a cost of GBP1,234,000.
8. Related Party Transactions
Under the terms of an agreement dated 8 July 2002, the Company has appointed
Gartmore Investment Limited to be the Manager. The investment management fee
payable to the Manager is calculated at 1.0% per annum of the gross asset value
(less current liabilities) of the Group held at each month end. The total fees
payable under the agreement are shown in the Condensed Consolidated Income
Statement.
At 30 September 2009 an amount of GBP246,000 (31 March 2009: GBP168,000, 30
September 2008: GBP207,000) was outstanding and due to Gartmore Investment
Limited.
In addition to the fees paid under the management agreement, the Company also
pays Gartmore Investment Limited up to a maximum of GBP20,000 per annum for the
services provided in respect of Gartmore SAVEit and Gartmore ISAit. The fees
included in the accounts for the six months ended 30 September 2009 were GBP
10,000 (31 March 2009: GBP18,000 30 September 2008: GBP9,000), of which GBP5,000 (31
March 2009: GBP2,000, 30 September 2008: GBP1,000) was outstanding.
The Directors of the Company may be or have been directors of companies held in
the portfolio. The Board has delegated authority for investment selection to
the Manager and the Manager has selected all investments independently in
accordance with the investment strategy set out above. The Board as a whole
reviews the investment portfolio on a regular basis and is satisfied that the
investments were selected in an objective manner and that no conflict of
interest has arisen as a result of the selection of these stocks.
ANALYSIS OF NET ASSETS BY LOCATION OF INCORPORATION
Valuation at Net Appreciation Valuation at
31 March 2009 Transactions 30 September 2009
GBP'000 % GBP'000 GBP'000 GBP'000 %
Equities
United Kingdom 2,613 5.3 (99) 2,589 5,103 6.0
Republic of 43,856 89.9 (12,358) 29,897 61,395 72.3
Ireland
Total 46,469 95.2 (12,457) 32,486 66,498 78.3
investments
Net current 2,400 4.9 15,978 - 18,378 21.7
assets
Deferred tax (70) (0.1) 70 - - -
Net assets 48,799 100.0 3,591 32,486 84,876 100.0
PORTFOLIO
Valuation at 30 September 2009
Company Sector classification Valuation GBP % of
'000 portfolio
Bank of Ireland Banks 8,549 10.3
Allied Irish Bank Banks 8,081 9.7
Total Produce Food & Drug Retailers 4,433 5.3
FBD Holdings Non Life Insurance 3,940 4.7
Andor Technology Electronic & Electric 3,778 4.5
Equipment
Origin Enterprises Food Producers 3,643 4.4
Irish Life & Permanent Life Insurance 3,520 4.3
Fyffes Food Producers 3,501 4.2
Elan Corporation Pharmaceuticals & 3,295 4.0
Biotechnology
Glanbia Food Producers 2,998 3.6
Grafton Group Support Services 2,768 3.3
Norkom Group Software & Computer Services 2,366 2.8
IFG Group General Financial 1,817 2.2
Worldspreads Group Travel & Leisure 1,615 1.9
Greencore Group Food Producers 1,575 1.9
Datalex Software & Computer Services 1,573 1.9
Providence Resources Oil & Gas Producers 1,288 1.5
TVC Holdings General Financial 1,279 1.5
UTV Media Media 1,151 1.4
Kerry Group Food Producers 1,080 1.3
The twenty principal equity investments listed above represented 74.7% of the
portfolio at 30 September 2009 (90.6% at 30 September 2008 and 82.2% at 31
March 2009).
Other equity investments represented 5.1% of the portfolio at 30 September 2009
(7.6% at 30 September 2008 and 8.8% at 31 March 2009).
HALF-YEARLY REPORT
The foregoing represents the full text of the Half-Yearly Report for the six
months to 30 September 2009, which will be posted to shareholders shortly. The
Report will also be available for download from the following websites:
www.gartmoreirishgrowthfund.com and www.gartmore.com or on request from the
Company Secretary.
Capita Sinclair Henderson Limited
30 November 2009
END
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