Informe de medio año
Rougier SA
€14.50
17:19 26/04/24
CQS Recursos Naturales Crecimiento e Ingresos PLC
Unaudited Half Year Results For The Six Months Ended 31 December 2023
This Announcement is not the Company's Half Year Report & Accounts. It is an abridged version of the Company's full Half Year Report & Accounts for the six months ended 31 December 2023. The full Half Year Report & Accounts, together with a copy of this announcement, will shortly be available on the Company's website at www.ncim.co.uk/cqs-natural-resources-growth-and-income-plc where up to date information on the Company, including daily NAV, share prices and fact sheets, can also be found.
The Company's Half Year Report & Accounts for the six months ended 31 December 2023 has been submitted to the UK Listing Authority, and will shortly be available for inspection on the National Storage Mechanism ("NSM"): https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Nuestro objetivo
To provide shareholders with capital growth and income predominantly from a portfolio of mining and resource equities and of mining, resource and industrial fixed interest securities.
Informe estratégico
Las métricas clave
Seis meses hasta el 31 de diciembre de 2023 | Seis meses hasta el 31 de diciembre de 2022 | |
Rentabilidad total del valor liquidativo | 3.4% | 17.2% |
Rentabilidad total del precio de la acción | 0.7% | 13.9% |
Dividend yield** | 3.3% | 2.8% |
Net asset value capital return | 0.1% | 15.6% |
Share price capital return | (0.7)% | 12.3% |
MSCI World Energy Sector Index* total return (sterling adjusted) | 6.8% | 17.7% |
MSCI World Metals and Mining Index* total return (sterling adjusted) | 8.4% | 18.9% |
* Used by the Company as a comparator, not a benchmark.
** Based on an annualised dividend of 5.60 pence per share.
Declaración del presidente
Your Board believes that the ongoing energy transition is an investment theme that will deliver rewards to investors over the long term.
Visión general
Geopolitical events, inflation concerns, and a slow rebound in growth in China have defined the first half of our financial year. These macro headwinds have had a knock on effect on some but not all commodities in which the fund invests. As a result, your Investment Manager took a more cautious approach over the past six months, positioning the portfolio to mitigate risks.
Geopolitically, the period was dominated by the Israel / Hamas conflict and the ongoing war in Ukraine. While fears of a significant broadening of the conflict have, to date, proven unfounded, November saw the beginning of sustained attacks on shipping in the Red Sea. Perhaps surprisingly, these tensions have yet to have a material effect on the price of commodities.
Elsewhere, reflecting easing inflation and weak new housing and manufacturing activity in China which have acted as headwinds to many commodity markets, the portfolio has low levels of exposure to base metals. Precious metals, on the other hand, were supported by central bank buying, with gold hitting an all-time high although this is yet to flow through to the valuations of the precious metal miners.
On a positive note, our exposure to uranium has delivered good results as the sector has continued to be supported by demand arising from moves to reduce emissions and extend reactor lives. Supply has been constrained as a result of sanctions against Russia and a lack of new developments and the Investment Manager believes that this allows the sector to offer some defensive characteristics.
Fuller details of how the Investment Manager has navigated these and other markets in which we invest are provided in the Investment Manager's Review.
PERFORMANCE AND DISCOUNT
Despite the macro headwinds, the performance of the fund generated a total net asset return of 3.4%. The share price total return over the period was 0.7%. This difference reflects a widening of the discount over the period from 13.5% to 17.7%, in line with the widening of discounts seen across the investment trust sector in the second half of calendar 2023.
As stated in our most recent Annual Report, the Company now uses the MSCI World Metals and Mining Index (which produced a total return of 8.4% in sterling terms), and the MSCI World Energy Sector Index (which returned 6.8% in sterling terms) as performance comparators. This decision was taken as one of the component indices from our previous composite index (80 per cent of the EMIX Global Mining Index and 20 per cent of the Credit Suisse High Yield Index) was retired in July 2023 and no suitable replacement was available. The Board believes the comparison of our performance to the MSCI World Metals and Mining and the MSCI World Energy Sector indices is more accurate and sustainable.
During the six month period under review, the Company underperformed its MSCI comparators. In part, this was due to the Company's focus on small and mid-capitalisation companies, which the macro-economic environment did not favour during the period.
Over the longer term the Company's net asset value has increased by 144.0% in total return terms over the five years to 31 December 2023. In comparison, the MSCI World Energy Sector Index has risen by 65.2% and the MSCI World Metals and Mining Index has increased by 113.4% over the same period.
DIVIDENDS AND INCOME
The Board considers that the dividend policy is very attractive to shareholders and provides an element of share price stability. The Company has continued to maintain its dividend and has paid two quarterly dividends of 1.26 pence each per share during the financial year to date.
We continue to monitor the revenue position of the Company closely. Our income can be materially affected by shifts in portfolio holdings and by special dividends received. The revenue outlook remains healthy, supported by income from shipping and energy. However, at this stage of the year it is reasonable to say that a repeat of last year's supernormal payout is unlikely given a reduced level of special dividend receipts from energy investments in the year to date. Based on the current conditions and revenue forecasts, and subject to no unforeseen circumstances, the Board currently intends to follow the pattern of previous years in paying three identical interim dividends, with the last dividend of the year being adjusted to reflect the full year revenue position of the Company. Should the portfolio benefit from any material one-off dividends from its holdings, the Board may consider an additional special dividend, separate from the more reliable continuing dividend stream offered by the Company.
ENGRANAJE
The rising uncertainty in the markets in which the Company invests has led the Investment Manager to reduce gearing slightly over the period from 8.9% at the start of the period to 7.1% as at 31 December 2023. Gearing continues to be provided by a £25 million revolving credit facility from Scotiabank which is due to mature in September 2024 and which the Company intends to renew. As at 31 December 2023, a total of £14 million had been drawn down from this facility. Further details will be provided in the Company's Annual Report for the year to 30 June 2024.
PANORAMA
The outlook is demanding, however, the more volatile conditions we are operating in do create investment opportunities for your Investment Manager. The flexible mandate which allows the Investment Management team to invest across a range of commodity sectors has proved very useful as the Company has avoided exposure to areas such as iron ore and copper which have come under pressure over the last year. Attractive areas for investment growth can be seen in the uranium sector in which we have increased our weighting. We have also kept our precious metals exposure as an effective hedge against market volatility.
The Board share the Investment Manager's views and expectations for the longer term: further details are set out within their Review.
HELEN GREEN
Presidente
27 de marzo de 2024
Aspectos financieros más destacados
Regreso trotal | Seis meses terminaron 31 Dec 2023 | Seis meses terminaron 31 Dec 2022 | Año terminado 30 de junio de 2023 | Five years ended 31 diciembre 2023 |
Valor liquidativo | 3.4% | 17.2% | 3.5% | 144.0% |
Precio ordinario de la acción | 0.7% | 13.9% | (2.0)% | 142.2% |
MSCI World Energy Sector Index (sterling adjusted)* | 6.8% | 17.7% | 8.2% | 65.2% |
MSCI World Metals and Mining Index (sterling adjusted)* | 8.4% | 18.9% | 14.0% | 113.4% |
Valores de capital | Como en 31 diciembre 2023 | Como en 30 junio 2023 | % cambio |
Valor liquidativo por acción | 204.33p | 204.16p | 0.1% |
Precio ordinario de la acción (mercado medio) | 168.25p | 169.50p | (0.7)% |
Ingresos y dividendos | Seis meses terminaron 31 Dec 2023 | Seis meses terminaron 31 Dec 2022 |
Utilidad por acción ordinaria | 3.06p | 5.26p |
Dividendos por acción ordinaria | 2.52p | 2.52p |
Dividend yield** | 3.3% | 2.8% |
El descuento (difference between share price and fully diluted net asset value) | 17.7% | 15.8% |
engranaje | 7.1% | 8.2% |
Gastos corrientes (como porcentaje de los fondos promedio de los accionistas) | 1.8% | 1.6% |
Highs and Lows during the six months ended 31 December 2023 | Alta | Baja |
Valor liquidativo | 217.92p | 188.63p |
Precio ordinario de la acción (mercado medio) | 187.00p | 164.50p |
El descuento | 19.3% | 9.9% |
Historia de dividendos | Tasa por acción | Fecha ex dividendo | Grabar fecha | Fecha de pago |
Second interim dividend 2024 | 1.26p | 25 de enero de 2024 | 26 de enero de 2024 | 23 de febrero de 2024 |
First interim dividend 2024 | 1.26p | 26 de octubre de 2023 | 27 de octubre de 2023 | 27 November 2023 |
Total | 2.52p | |||
Special interim dividend 2023 | 3.00p | 21 Septiembre 2023 | 22 Septiembre 2023 | 16 de octubre de 2023 |
Fourth interim dividend 2023 | 1.82p | 27 Julio 2023 | 28 Julio 2023 | 31 de agosto de 2023 |
Third interim dividend 2023 | 1.26p | 27 de abril de 2023 | 28 de abril de 2023 | 26 de mayo de 2023 |
Second interim dividend 2023 | 1.26p | 26 de enero de 2023 | 27 de enero de 2023 | 28 de febrero de 2023 |
First interim dividend 2023 | 1.26p | 27 de octubre de 2022 | 28 de octubre de 2022 25 | Noviembre 2022 |
Total | 8.60p | |||
* The EMIX Global Mining Index (sterling adjusted), which formed part of the Company's composite benchmark index in periods prior to 30 June 2023 ceased publication. From 1 July 2023, the Company has used the MSCI World Energy Sector Index (sterling adjusted) and MSCI World Metals and Mining Index (sterling adjusted) as performance comparator indices, not formal benchmarks. ** Based on an annualised dividend of 5.60 pence per share (31 December 2022: 5.60 pence per share). |
Portafolio de un vistazo
Por producto
As at 31 December 2023 % of total investments | As at 31 December 2022 % of total investments | |
Petróleo y gas | 31.1% | 34.1% |
Gold | 20.6% | 11.2% |
Uranio | 10.0% | 5.9% |
Envíos | 6.6% | 8.3% |
Carbón | 5.8% | 8.2% |
Cobre | 5.7% | 6.5% |
Base metals* | 5.2% | 6.6% |
Litio | 4.9% | 6.8% |
Aceite de palma | 2.9% | 3.2% |
Silver | 2.1% | 2.7% |
Tierras raras | 2.1% | 2.0% |
Níquel | 1.2% | 3.1% |
Platino | 0.8% | 1.0% |
Diversified Minerals | 0.7% | 0.4% |
Zinc | 0.3% | - |
* Comprises polymetallic investee companies.
By location of listing
As at 31 December 2023 % of total investments | As at 31 December 2022 % of total investments | |
Canadá | 52.1% | 37.6% |
US | 15.1% | 17.7% |
Australia | 15.1% | 20.8% |
UK | 10.8% | 9.7% |
Europa | 4.0% | 8.8% |
No cotizado | 2.9% | 5.4% |
Revisión del administrador de inversiones
ECONOMIC AND MARKET SUMMARY
Inflation pressures notably eased during the period under review, supporting a market consensus for a broader soft landing in the global economy. We have taken a more cautious tone as we see a number of potential risks that are increasingly difficult to ignore. The year-on-year comparisons on inflation are flattered by the peak inflation numbers in late 2022, which, whilst easing, means that prices are still substantially above where they were, even if the rate of growth has slowed. This has led to higher wage demands from a tight workforce adding some permanence to inflation.
The reopening of China's economy has stalled over the past six months as the ongoing property crisis continues to dampen sentiment and confidence, thus weighing on the demand for commodities. The Chinese stock markets remain weak, indicative of broader concerns, whilst the Chinese central bank is easing monetary conditions to add support.
The ongoing Russian / Ukrainian war has had remarkably little impact on commodities, as Russian commodities have circumvented restrictions and sanctions. Russian oil has consistently traded above the $60 per barrel price cap.
The Israel / Hamas conflict has also seen little direct impact on commodities. Iran remains involved in most Middle East regional incidents and continues to enrich uranium to weapons grade, suggesting an increasing probability of escalation or at a minimum a stricter enforcement of sanctions, which would be supportive for oil prices.
POSICIONAMIENTO
Commodities continue to offer good protection against inflation risk, but with a worsening outlook for China we continued to focus the portfolio on commodities that are less tied to Chinese economic growth. This has led to a zero weighting in iron ore and a low weighting in base metals, that are intrinsically tied to Chinese property and white goods. The pace of the energy transition theme has also softened, and the valuations are generally quite stretched. Over the medium term, valuations appear attractive as supply remains constrained. We will be looking to add back to the sector on any material pull backs.
We increased the weighting in the precious metal miners, however, sentiment towards this sub sector remained poor, with discounted valuations despite the gold price making a new all time high at the end of 2023. Gold has held above $2,000 per oz. despite weak financial market demand from exchange-traded funds ("ETFs") and soft retail demand. The primary driver has been strong Central Bank demand, which we expect to continue over the coming years. There are many reasons we believe steady ETFs selling of physical gold may shift to buying in 2024, which may be the catalyst to more convincingly break the all-time highs that are currently creating significant resistance.
The portfolio continues to be overweight in energy, noting energy demand is fairly insensitive to slowdowns as people still drive to work, heat homes, require goods to be delivered to supermarkets etc. Supply growth is also constrained, but after OPEC cuts of 3 million barrels of oil per day, there is still spare production capacity that can fill projected global demand growth for 2024.
Although discord in OPEC is flagging, the Saudis are less willing to bear further cuts for the group, which lessens one supportive mechanism. However, other than this spare capacity, it is not clear where any meaningful sources of supply will come from. The US shale sector is now maturing. There have been a number of large-scale mergers, discipline has increased, rig counts have dropped and US shale growth looks close to plateauing, despite headlines flagging record US shale production. We will see increasingly less flexibility in the system through 2024, leaving the market vulnerable to any supply shocks.
2023 was marked by very few energy supply disruptions, as Russian supply managed to circumvent sanctions and the price cap via the shadow fleet of older crude ships they acquired, but the lack of oil field services will begin to weigh on domestic production. The US also eased sanctions on Iranian oil exports, leading to an increase in supply, despite Iran appearing to have a hand in multiple points of tension in the Middle East. Going in to 2024, at the time of writing, Trump is leading in the polls. He would be likely to take a much tougher stance on Iran, whilst even under Biden, application of sanctions would probably toughen which could add to a tightening of spare capacity in the global oil market.
The portfolio's shipping weighting remains at 9%, dominated by holdings in crude shipper, Frontline, and propane shipper, BW LPG. The order books for shipping in general are at record lows, as a lack of clarity on future propulsion regulation has made financing new vessels difficult. This has pushed up the values of the existing fleets and is leading to strong day rates as shipping fleet utilisation levels increase. This has led to strong earnings for the sector.
The Company's weighting in uranium miners increased to 10.4%, in part due to strong performance from the likes of NexGen but also through some additions. The market dynamics for uranium look increasingly positive as a structural tightly supplied market is being met by an increase in demand. This is driven by an extension of reactor lives in the West following global climate commitments to reduce emissions. China continues to build 8-10 reactors a year and is pushing both spot uranium prices and contract prices significantly higher.
PANORAMA
The outlook for commodities looks more varied than we have seen in prior stages of the cycle in our view. Energy and precious metals offer an attractive risk reward on a top-down and bottom-up view, hence the large positioning. Commodities should prove more defensive in a slowing economic backdrop, whilst the bottom-up valuations lead to strong returns for the underlying companies held.
Uranium miners are seeing an exciting fundamental backdrop as a tightening supply demand balance is seeing stronger pricing. Unlike other commodities, higher prices have little impact on demand for Uranium as it is such a small proportion of the overall cost of power production. The political support for this zero-carbon form of baseload power will lead to a further build out of the global reactor fleet, supporting demand and thus prices received by the miners. This demand will remain regardless of the global economy so also offers defensive characteristics.
We see demand risks in base metals in the near term primarily driven by a Chinese slow down hence the zero weight in iron ore and reduced weight in base metals, but we like the long-term structural deficits some years out, especially in copper. Valuation remains hugely important in our allocation, which for now leaves copper miners looking relatively expensive. We will add back to these names on weakness or where we see outlying value opportunities.
IAN FRANCIS, KEITH WATSON, ROB CRAYFOURD
Gestores de inversiones de la nueva ciudad
27 de marzo de 2024
Investment Portfolio As at 31 Diciembre 2023
Empresa | Sector | Valuación 000 £ | Total Inversiones % |
Energía NexGen | Uranio | 10,848 | 7.4 |
BW GLP | Envíos | 7,530 | 5.1 |
Recursos esmeralda | Gold | 7,371 | 5.0 |
Transocean | Petróleo y gas | 6,451 | 4.4 |
Primera línea1 | Petróleo y gas | 5,024 | 3.4 |
Diamondback Energy | Petróleo y gas | 4,708 | 3.2 |
Perforación de precisión | Petróleo y gas | 4,379 | 3.0 |
Energía bermellón | Petróleo y gas | 4,370 | 3.0 |
Participaciones de REA2 | Aceite de palma | 4,236 | 2.9 |
Recursos EOG | Petróleo y gas | 4,041 | 2.8 |
Diez inversiones principales | 58,958 | 40.2 | |
Recursos Karora | Metales básicos | 3,875 | 2.6 |
Gas y petróleo diversificados | Petróleo y gas | 3,654 | 2.5 |
Recursos de África Occidental | Gold | 3,555 | 2.4 |
Tamboran Resources | Petróleo y gas | 3,497 | 2.4 |
Litio Leo | Litio | 3,340 | 2.3 |
Minería Foran | Cobre | 3,315 | 2.3 |
Corporación Lynas | Tierras raras | 2,872 | 2.0 |
Recursos de Thungela | Carbón | 2,578 | 1.8 |
Calidus | Gold | 2,571 | 1.8 |
Recursos de litio de Sigma | Litio | 2,548 | 1.7 |
Las veinte principales inversiones | 90,763 | 61.9 | |
Energía de peabody | Carbón | 2,479 | 1.7 |
Minería Ora Banda | Gold | 2,448 | 1.7 |
Minería de calibre | Gold | 2,065 | 1.4 |
Recursos globales de Coronado | Carbón | 2,027 | 1.4 |
Energía original | Uranio | 2,023 | 1.4 |
Wheaton Metales preciosos | Gold | 1,935 | 1.3 |
Metales de garra | Níquel | 1,819 | 1.2 |
Osisko | Gold | 1,776 | 1.2 |
Pioneer Natural Resources | Petróleo y gas | 1,765 | 1.2 |
2020 Bulkers | Envíos | 1,760 | 1.2 |
Treinta inversiones principales | 110,860 | 75.6 | |
Minería Galena | Metales básicos | 1,749 | 1.2 |
Peyto Exploration & Development | Petróleo y gas | 1,716 | 1.2 |
Perforación de estantes | Petróleo y gas | 1,539 | 1.0 |
Corporación Minera Adventus | Cobre | 1,525 | 1.0 |
Nueva Esperanza | Carbón | 1,432 | 1.0 |
Uranio de fisión | Uranio | 1,428 | 1.0 |
Ero Cobre | Cobre | 1,305 | 0.9 |
NorAm Drilling | Petróleo y gas | 1,244 | 0.8 |
Tamboran Resources | Petróleo y gas | 1,097 | 0.7 |
Minas de plata Fortuna | Silver | 1,078 | 0.7 |
Las cuarenta mejores inversiones | 124,973 | 85.2 | |
Recursos ascendentes3 | Metales básicos | 1,061 | 0.7 |
Metales X | Metales básicos | 940 | 0.6 |
Recursos de Westgold | Gold | 929 | 0.6 |
TDG Gold | Gold | 845 | 0.6 |
Metales de Asia Central | Cobre | 775 | 0.5 |
MAG Plata | Silver | 758 | 0.5 |
Richmond Vanadium | Diversified Minerals | 749 | 0.5 |
oro mawson | Gold | 738 | 0.5 |
Minerales Rex | Gold | 731 | 0.5 |
Rupert Resources | Gold | 690 | 0.5 |
Las cincuenta mejores inversiones | 133,189 | 90.9 | |
B2Gold Corp | Gold | 678 | 0.5 |
Reunion Gold | Gold | 602 | 0.4 |
Afentra | Petróleo y gas | 592 | 0.4 |
Patriot Battery Metals | Litio | 589 | 0.4 |
Integra Resources | Gold | 586 | 0.4 |
Plata Vizsla | Silver | 557 | 0.4 |
PetroTal Corp | Petróleo y gas | 552 | 0.4 |
Collective Mining | Cobre | 494 | 0.3 |
Regalías del tridente | Zinc | 479 | 0.3 |
luciérnaga | Litio | 475 | 0.3 |
Las sesenta mejores inversiones | 138,793 | 94.7 | |
Palladium One Mining | Platino | 467 | 0.3 |
euronav | Envíos | 451 | 0.3 |
Cosa Resources | Cobre | 451 | 0.3 |
Primeros minerales de Quantum | Cobre | 450 | 0.3 |
Silver Mountain Resources | Silver | 445 | 0.3 |
Recursos del Nuevo Mundo | Gold | 445 | 0.3 |
Odyssey Gold | Gold | 433 | 0.3 |
Minas Denison | Uranio | 429 | 0.3 |
Newcore Gold | Gold | 422 | 0.3 |
Metales del grupo platino | Platino | 381 | 0.3 |
Setenta inversiones principales | 143,167 | 97.7 | |
Otras inversiones | 3,432 | 2.3 | |
Total | 146,599 | 100.0 | |
1 Includes Frontline USD valued at £3,883,000 and Frontline NOK valued at £1,141,000. 2 Includes REA Holdings 9% preference shares valued at £3,670,000, REA Finance 8.75% 31/08/25 valued at £425,000, REA Holdings valued at £138,000 and REA Holdings warrants valued at £3,000. 3 Includes Ascendant Resources valued at £911,000 and Ascendant Resources warrants valued at £150,000. |
Top ten largest holdings
ENERGÍA NEXGEN
A tier 1 uranium development asset in the established Athabasca Basin uranium mining district in Saskatchewan, Canada has the potential to be the lowest cost uranium mine globally. As a zero-carbon source of energy, civil nuclear power generation and hence uranium, may gain further traction in global energy mix.
Valoración 31.12.23 £ 10,848,000 (30.06.23: £ 7,281,000)
Apreciación
£3,567,000
Ventas
-
Compras
-
BW GLP
The world's largest independent LPG shipper, predominantly sending propane from the US and Middle East to Asia. Propane is a by-product of shale production, so benefits from increased activity in the US. Naphtha switching at refiners and displacing wood for propane as fuel in the likes of India are major drivers of demand growth. The company has a strong capital returns policy, primarily through dividends.
Valoración 31.12.23 £ 7,530,000 (30.06.23: £ 6,487,000)
Apreciación
£3,065,000
Ventas
£ (2,022,000)
Compras
-
EMERALD RESOURCES
An Australian listed gold producer, with a producing mine in Cambodia and development asset in Australia. The company has successfully commissioned its low cost Okvau gold mine in Cambodia on time and budget. This strong management team has a long history of delivering mines on time and budget and are self-funded for the future growth profile.
Valoración 31.12.23 £ 7,371,000 (30.06.23: £ 5,160,000)
Apreciación
£2,542,000
Ventas
£ (331,000)
Compras
-
TRANSOCÉANO
A leading international provider of offshore contract drilling services for oil and gas wells. The group is well placed to benefit from an improvement in offshore rig day rates. The offshore rig market looks attractive as spending from global oil and gas increases, whilst the availability of rigs remains constrained given the large capital requirement and long lead times for new builds.
Valuation 31.12.23 £6,451,000 (30.06.23: £ 7,461,000)
Depreciación
£(620,000)
Ventas
£ (390,000)
Compras
-
FRONTLINE
A leading listed seaborne transporter of crude oil and refined products. The company owns and operates one of the largest and most modern fleets in the industry, consisting of VLCCs, Suezmax tankers and LR2 / Aframax tankers. Due to Frontline's brand, financial flexibility, and significant scale, it holds a unique position among its peers.
Valoración 31.12.23 £ 5,024,000 (30.06.23: £ 0)
Apreciación
£648,000
Ventas
£ (50,000)
Compras
£4,426,000
DIAMONDBACK ENERGY
A large US oil shale producer, in the Permian basin, in Texas. They have high quality acreage and management, so are well placed to benefit from current stronger energy pricing. The implied oil price of $60/bbl. is materially below current spot markets.
Valoración 31.12.23 £ 4,708,000 (30.06.23: £ 5,435,000)
Apreciación
£983,000
Ventas
£ (1,710,000)
Compras
-
PRECISION DRILLING
Precision Drilling owns a fleet of land rigs for oil and gas shale, in the US, Canada and Middle East. They are well placed to benefit from tightening fundamentals in the rig market, as producer activity picks up due to stronger energy pricing. Despite a cautious stance from oil and gas re adding production in North America, the rig market is already tight, seeing strong day rates for Precision.
Valoración 31.12.23 £ 4,379,000 (30.06.23: £ 6,874,000)
Apreciación
£1,271,000
Ventas
£ (3,766,000)
Compras
-
VERMILION ENERGY
A Canadian listed European and Canadian oil and gas producer. Two-thirds of their production is North American, but also with sizeable European gas exposure at a higher margin, the company is well placed to benefit from current tight gas market in Europe due to the loss of Russian gas, as windfall taxes have discouraged new investment into supply. With strong free cash flow and significant scope for growth, the company has focused on share buybacks so far and will increase this as they reduce debt levels further.
Valoración 31.12.23 £ 4,370,000 (30.0623: £ 4,506,000)
Depreciación
£(136,000)
Ventas
-
Compras
-
PARTICIPACIONES REA
A leading contributor to responsible palm oil production globally. REA has a commitment to produce sustainably and has also received RSPO certification. Following substantial cost cutting measures the group is well placed to benefit from the recent recovery in the crude palm oil price.
Valoración 31.12.23 £ 4,236,000 (30.06.23: £ 4,683,000)
Depreciación
£(447,000)
Ventas
-
Compras
-
EOG RESOURCES
A top tier US shale oil producer. The company explores for, develops, produces, and markets crude oil, natural gas liquids ("NGLs") and natural gas primarily in major producing basins in the US. It also has offshore operations in Republic of Trinidad and Tobago.
Valoración 31.12.23 £ 4,041,000 (30.06.23: £ 4,150,000)
Apreciación
£257,000
Ventas
£ (366,000)
Compras
-
Valuación 30 de junio de 2023 | Compras | Ventas | Apreciación/ (depreciación) | Total | |
000 £ | 000 £ | 000 £ | 000 £ | 000 £ | |
Diez inversiones principales | 52,037 | 4,426 | (8,635) | 11,130 | 58,958 |
At 31 December 2023, these investments totalled £58,958,000 or 40.2% of the investment portfolio.
Estados financieros.
Estado de Resultados Resumido
Seis meses terminaron 31 de diciembre 2023 (No auditado) | Seis meses terminaron 31 de diciembre 2022 (No auditado) | ||||||
Ingresos | Capital | Total | Ingresos | Capital | Total | ||
Notas | 000 £ | 000 £ | 000 £ | 000 £ | 000 £ | 000 £ | |
Ganancias por inversiones mantenidas a valor razonable con cambios en resultados | 2 | - | 2,567 | 2,567 | - | 20,502 | 20,502 |
Ganancias por cambio | - | 226 | 226 | - | 16 | 16 | |
por | 3 | 3,078 | 341 | 3,419 | 4,428 | - | 4,428 |
Comisión de gestión de inversiones | (209) | (628) | (837) | (230) | (691) | (921) | |
Otros gastos | (523) | (2) | (525) | (356) | - | (356) | |
Rentabilidad neta antes de costes financieros e impuestos | 2,346 | 2,504 | 4,850 | 3,842 | 19,827 | 23,669 | |
Intereses por pagar y cargos similares | (126) | (367) | (493) | (78) | (233) | (311) | |
Rentabilidad neta antes de impuestos | 2,220 | 2,137 | 4,357 | 3,764 | 19,594 | 23,358 | |
Taxation | (174) | - | (174) | (247) | - | (247) | |
Net return after tax for the period | 2,046 | 2,137 | 4,183 | 3,517 | 19,594 | 23,111 | |
Rentabilidad básica y diluida por acción | 3.06p | 3.19p | 6.25p | 5.26p | 29.29p | 34.55p |
The 'Total' column of this statement represents the Company's profit and loss account, prepared in accordance with UK GAAP.
Todos los ingresos y elementos de capital en este estado derivan de operaciones continuas.
There is no other comprehensive income, and therefore the net return after tax for the period is also the total comprehensive income.
Las notas adjuntas son parte integral de los estados financieros.
Balance general condensado
Como en 31 diciembre 2023 (No auditado) | Como en 30 junio 2023 (auditado) | ||
Notas | 000 £ | 000 £ | |
Activos fijos | |||
Inversiones a valor razonable con cambios en resultados | 146,599 | 149,465 | |
Activos circulantes | |||
Deudores | 374 | 257 | |
Efectivo en el banco | 4,234 | 3,857 | |
4,608 | 4,114 | ||
Acreedores: cantidades que vencen dentro de un año | |||
Otras cuentas por pagar | (531) | (1,019) | |
Loan: amount falling due within one year | 8 | (14,000) | (16,000) |
(14,531) | (17,019) | ||
Pasivos corrientes netos | (9,923) | (12,905) | |
Activos netos | 136,676 | 136,560 | |
Capital y reservas | |||
Llamado capital social | 16,722 | 16,722 | |
Reserva distribuible especial | 28,309 | 28,571 | |
Compartir premium | 4,851 | 4,851 | |
Reserva capital | 85,591 | 83,454 | |
Reserva de ingresos | 1,203 | 2,962 | |
Fondos de accionistas de capital | 7 | 136,676 | 136,560 |
Valor liquidativo por acción | 7 | 204.33p | 204.16p |
Las notas adjuntas son parte integral de los estados financieros.
Estado condensado de cambios en el patrimonio
Compartir Capital | Compartir Premium cuenta | Especiales distribuible reserva | Capital Reservar | Ingresos Reservar | Total | |
000 £ | 000 £ | 000 £ | 000 £ | 000 £ | 000 £ | |
Por los seis meses terminados | ||||||
Saldo al 30 de junio de 2023 | 16,722 | 4,851 | 28,571 | 83,454 | 2,962 | 136,560 |
Return after tax for the period | - | - | - | 2,137 | 2,046 | 4,183 |
Dividendos pagados | - | - | (262) | - | (3,805) | (4,067) |
Saldo al 31 de diciembre de 2023 | 16,722 | 4,851 | 28,309 | 85,591 | 1,203 | 136,676 |
Por los seis meses terminados | ||||||
Saldo al 30 de junio de 2022 | 16,722 | 4,851 | 28,571 | 84,928 | - | 135,072 |
Return after tax for the period | - | - | - | 19,594 | 3,517 | 23,111 |
Dividendos pagados | - | - | - | - | (2,060) | (2,060) |
Saldo al 31 de diciembre de 2022 | 16,722 | 4,851 | 28,571 | 104,522 | 1,457 | 156,123 |
The special distributable reserve and the revenue reserve represent the amount of the Company's reserves distributable by way of dividend.
Las notas adjuntas son parte integral de los estados financieros.
Estado de flujo de efectivo condensado
Seis meses terminó 31 diciembre 2023 (No auditado) | Seis meses terminó 31 diciembre 2022 (No auditado) | ||
000 £ | 000 £ | ||
Actividades de explotación | |||
Ingresos por inversiones recibidos | 2,767 | 3,302 | |
Interés de depósito recibido | 46 | 33 | |
Gastos de gestión de inversiones pagados | (702) | (896) | |
Otros pagos | (562) | (345) | |
Entrada neta de efectivo de las actividades operativas | 1,549 | 2,094 | |
Actividades de inversión | |||
Compras de inversiones | (10,569) | (40,090) | |
Enajenaciones de inversiones | 15,724 | 40,934 | |
Entrada neta de efectivo por actividades de inversión |
| 5,155 | 844 |
Actividades de financiación |
|
|
|
Dividendos pagados | (4,067) | (2,060) | |
Pago de prestamo | (2,000) | (3,000) | |
Intereses pagados del préstamo | (486) | (302) | |
Salida neta de efectivo de las actividades de financiación | (6,553) | (5,362) | |
Aumento / (disminución) del efectivo neto | 151 | (2,424) | |
Movimientos cambiarios | 226 | 16 | |
Opening net cash at 1 July | 3,857 | 6,111 | |
Closing net cash at 31 December | 4,234 | 3,703 |
Las notas adjuntas son parte integral de los estados financieros.
Notas a los estados financieros condensados for the Half Year ended 31 Diciembre 2023
1 ACCOUNTING POLICIES - BASIS OF PREPARATION
The condensed interim financial statements have been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting) and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on a going concern basis and on the assumption that approval as an investment trust will continue to be granted.
The condensed interim financial statements have been prepared using the same accounting policies as the preceding annual financial statements, which were prepared under Financial Reporting Standard 102.
2 GAINS ON INVESTMENTS
Included within gains on investments for the period ended 31 December 2023 are realised £1,993,000 (31 December 2022: £13,610,000) and unrealised gains of £574,000 (31 December 2022: £6,892,000).
3 INGRESOS
The breakdown of income for the six months to 31 December 2023 and 31 December 2022 is as follows:
Seis meses terminó 31 diciembre 2023 (No auditado) | Seis meses terminó 31 diciembre 2022 (No auditado) | |
000 £ | 000 £ | |
Ingresos por inversiones: | ||
Ingresos por dividendos del Reino Unido | 39 | 66 |
Preference share dividend income | - | 714 |
Ingresos por dividendos en el extranjero | 2,890 | 3,469 |
Overseas fixed interest | 103 | 126 |
3,032 | 4,375 | |
Otros ingresos | ||
Depositar interés | 46 | 53 |
Ingresos totales | 3,078 | 4,428 |
4 RETURN PER SHARE
Return per share attributable to shareholders reflects the overall performance of the Company in the period. Net revenue recognised in the first six months is not necessarily indicative of the total likely to be received in the full accounting year.
Seis meses terminó 31 diciembre 2023 (No auditado) | Seis meses terminó 31 diciembre 2022 (No auditado) | |
000 £ | 000 £ | |
Retorno de ingresos | 2,046 | 3,517 |
Retorno de capital | 2,137 | 19,594 |
Regreso trotal | 4,183 | 23,111 |
Seis meses terminó 31 diciembre 2023 (No auditado) | Seis meses terminó 31 diciembre 2022 (No auditado) | |
000 £ | 000 £ | |
Retorno de ingresos por acción | 3.06 | 5.26 |
Rentabilidad de capital por acción | 3.19 | 29.29 |
Rentabilidad total por acción | 6.25 | 34.55 |
The weighted average number of shares in issue during the six months ended 31 December 2023 was 66,888,509 (Six months ended 31 December 2022: 66,888,509).
No existen instrumentos dilutivos emitidos por la Compañía.
5 DIVIDENDOS
During the six months to 31 December 2023, the Company paid a fourth interim dividend of 1.82 pence per share and a special interim dividend of 3.00 pence per share in relation to the financial year ended 30 June 2023, and a first interim dividend of 1.26 pence per share in relation to the six months ended 31 December 2023.
A second interim dividend 2024 of 1.26 pence per share was declared after 31 December 2023 and paid on 23 February 2024. This was not recognised in the Condensed Income Statement in this Half-Yearly Report.
6 CAPITAL ACCIONARIO
At 31 December 2023 there were 66,888,509 ordinary shares in issue (30 June 2023: 66,888,509).
During the six months ended 31 December 2023 the Company did not issue or repurchase for cancellation any ordinary shares (Six months ended 31 December 2022: none).
7 VALOR PATRIMONIAL NETO POR ACCIÓN
Como en 31 diciembre 2023 | Como en 31 diciembre 2022 | |
(No auditado) | (No auditado) | |
Valor liquidativo por acción | 204.33p | 204.16p |
Activos netos | 136.7m | 136.6m |
Acciones ordinarias de 25 peniques cada una en circulación | 66,888,509 | 66,888,509 |
No existen instrumentos dilutivos emitidos por la Compañía.
8 BANK LOAN FACILITY
Como en 31 diciembre 2023 (No auditado) | Como en 31 diciembre 2022 (No auditado) | |
000 £ | 000 £ | |
Amount drawn from the bank loan facility | 14,000 | 16,000 |
The Company has an unsecured loan facility with Scotiabank Europe Plc ("Scotiabank"). The facility expired on 17 September 2023 and has been renewed for a further year expiring on 15 September 2024.
As at 31 December 2023, the unsecured loan facility had a limit of £25 million, of which £14 million was drawn down at an estimated interest rate of 6.2855%.
During the period the covenants of the loan facility have been met. The following are the covenants for the facility:
? the borrower shall not permit the adjusted asset coverage to be less than 3.5 to 1; and
? the borrower shall not permit the net asset value to be less than £45,000,000.
The loan facility is rolled over every three months and can be cancelled at any time.
9 EMPRESA EN FUNCIONAMIENTO
After making enquiries and having considered the Company's investment objective, nature of the investment portfolio, bank facility and expenditure projections, the Directors consider that the Company has adequate resources to continue in operation for the foreseeable future. For this reason, the Directors are satisfied that it is appropriate to adopt the going concern basis in preparing this report.
10 COMPARATIVE INFORMATION
The condensed financial statements contained in this Half-Yearly Report do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months to 31 December 2023 and 31 December 2022 has not been audited or reviewed by the Company's external auditor.
The information for the year ended 30 June 2023 has been extracted from the latest published audited financial statements. Those statutory financial statements have been filed with the Registrar of Companies and included the report of the auditor, which was unqualified and did not contain a statement under Sections 498(2) or (3) of the Companies Act 2006.
Las ganancias de los primeros seis meses no deben tomarse como una guía para los resultados del año completo.
11 PARTES RELACIONADAS
The following are considered related parties: the Board of Directors ("the Board") and CQS (UK) LLP ("the Investment Manager"). On 15 November 2023, the Company was advised that CQS (UK) LLP was being acquired by Manulife Investment Management, a leading international financial services group. The transaction is expected to close in Spring 2024.
Todas las transacciones con partes relacionadas se realizan en condiciones de mercado.
There are no other transactions with the Board other than aggregated remuneration and reimbursement of expenses for services as Directors. The balance due to Directors for fees at the period end was £17,000.
The Investment Manager's management fee is 1.2 per cent on net assets up to £150m; 1.1 per cent on net assets above £150m and up to £200m; 1.0 per cent on net assets above £200m and up to £250m; and 0.9 per cent on net assets above £250m.
The amount incurred in respective of investment management fees during the period was £837,000 (2022: £921,000), of which £273,000 (2022: £320,000) was outstanding as at 31 December 2023.
Interim Management Report and Responsibility
DECLARACIÓN
The Chair's Statement and the Investment Manager's Review give details of the important events which have occurred during the period and their impact on the financial statements.
PRINCIPALES RIESGOS E INCERTIDUMBRES
The Company's assets consist principally of listed equities and fixed interest securities and its principal risks are therefore market related.
The Company is also exposed to currency risk in respect of the markets in which it invests. Other key risks faced by the Company relate to investment and strategy, market, sector, financial, earnings and dividend, gearing, operational and key person, regulatory, cyber and political. These risks, and the way in which they are managed, are described in more detail under the heading 'Principal Risks, Uncertainties and Mitigation' within the Strategic Review contained within the Company's Annual Report for the year ended 30 June 2023. The Company's principal risks and uncertainties have not changed materially since the date of the report and are not expected to change materially for the rest of the Company's financial year.
RELATED PARTIES TRANSACTIONS
Durante los primeros seis meses del presente año fiscal, no se han realizado transacciones con partes relacionadas que hayan afectado materialmente la situación financiera o el desempeño de la Compañía.
PREOCUPACIÓN CONTINUA
The Directors, having considered the Company's investment objective, the nature and liquidity of the portfolio and the income and expenditure projections, consider that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and is financially sound. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the financial statements.
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE INTERIM REPORT
El Consejo de Administración confirma que, a su leal saber y entender:
? the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting" and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;
? the interim management report includes a fair review of the information required by the Disclosure and Transparency Rules ("DTR") 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements;
? the Directors' Statement of Principal Risks and Uncertainties shown above is a fair review of the information required by DTR 4.2.7R; and
? the interim management statement and condensed set of financial statements include a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the 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.
En nombre de la Junta
HELEN GREEN
Presidente
27 de marzo de 2024
- TERMINA -
Para más información, póngase en contacto con:
Administrador y secretario de la empresa
Frostrow Capital LLP
Leonor Cramer
Email: GME@dhr-rgv.com
Tel: 0203 008 4613
Gestor de inversiones
CQS (Reino Unido) LLP
craig cleland
Email: GME@dhr-rgv.com
Tel: 0207 201 5368
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