Date: 6 March 2017
From: CQS New City High Yield Fund Limited
LEI: 549300KMGN75B0PTWT07
Subject: Interim Report
Unaudited statement of results for the six months ended 31 December 2016
Chairman's Statement
Highlights for the Six Months to 31 December 2016
- Net asset value total return of 9.8%.
- Ordinary share price total return of 8.1%.
- Dividend yield of 7.4%, based on dividends at an annualised rate of 4.39 pence and a share price of 59.13 pence at 31 December 2016.
- Ordinary share price at a premium of 2.9% to net asset value at 31 December 2016.
- £1.0m of equity raised during the period.
Investment and Share Price Performance
Your Company's net asset value increased by 5.1% to 57.5 pence per share during the six months ended 31 December 2016. When this capital measure is adjusted for the payment of dividends totalling 1.96 pence per share in respect of the period, the net asset value total return was a strong 9.8%. The share price total return for the same period was similarly strong at 8.1%,
Earnings and Dividends
The Company declared two dividends of 0.98 pence in respect of the period, an increase of 0.1% on those declared in respect of the same period last year. Based on an annualised rate of 4.39 pence and a share price of 61.25 pence at the time of writing, this represents a yield of 7.2%.
Gearing
The Company renewed its existing £30m loan facility with Scotiabank in December 2016 at a current all-in rate of 1.27%. The new facility is on comparable terms with the one that it replaced. £25m was drawn down at 31 December 2016 and the Company had an effective gearing rate of 11%.
Rating and Fund Raising
The market continued to attach a premium rating to the shares of your Company throughout the period under review. £1.0m of new equity was issued during the period as part of the process of managing the premium to net asset value at which your Company's shares trade, something that the Board will continue to keep under close review.
Board
I am delighted to welcome Ian Cadby, who joined us on 18 January 2017, to the Board. Ian, a Jersey resident, has over 27 years' experience within the financial services industry in London, New York and Jersey with a strong emphasis on risk management, corporate governance and board strategy. These are skills that further strengthen the Board's ability to steer your Company through the ever changing financial environment.
After a process of active refreshment, the Board is now at full strength with five Directors in total; three residing in Jersey and two in the UK.
Outlook
We began the six months under review digesting the outcome of the Brexit vote, and we close it contemplating the early stages of the Trump presidency. The first resulted in dramatic sterling weakness, a cut in UK interest rates and more quantitative easing. Equity markets were unexpectedly firm, and were buoyed further by the early news from the United States. Our portfolio manager, Ian Francis, considers these matters at greater length in his Investment Manager's Review.
High yield markets reacted well to the turbulence of the period under review, and the Manager continues to find value in the bond markets. The strength of the US economy and the long awaited first increase in interest rates by the Federal Reserve point the way forward, and your Company remains well positioned to benefit from the prevailing market trends.
James G West
Chairman, 3 March 2017
Investment Manager's Review
The second half of calendar year 2016, had all the potential for highly volatile markets and further political uncertainty. We started from a point just after the Brexit vote and the immediate devaluation of sterling and this would set the scene for the UK for the period.
In the UK, after a very surprising Conservative party leadership contest, the party rapidly chose Theresa May thus removing the opportunity for a summer of over hyped media coverage and political mudslinging. This removed a lot of uncertainty in UK equity and bond markets, but had, unsurprisingly no effect on sterling. The weakness of the currency would be a positive factor for the UK economy throughout the period. August saw the Bank of England step in with a 25 basis point cut in rates, a further £60bn of quantitative easing, £10bn of corporate bond purchases and £100m of funding for lending, all of which had the desired positive effect on markets with the high yield market reacting particularly well.
The United States economy showed continued strength of recovery which was evidenced by new home sales being up 12.4% (the most rapid rise since October 2007), and strong employment data, adding 151,000 jobs in August. This was all positive news and put pressure on the Federal Reserve Bank to raise rates.
Europe had some negative news in September, with the publishing of second quarter GDP data, which for France and Italy showed their economies stalling with growth at a mediocre 0.3%. Not that Germany provided much solace with a flat GDP figure of 0.3% which as Europe's largest economy was a worrying event. We are still a long way from sustained recovery in Europe.
The United States economy continued to strengthen in front of the election evidenced by the median weekly earnings being up 3% year on year, when added to all of the positive figures elsewhere in the economy this would have normally triggered a rate rise, but in this case just ahead of a very acrimonious election which was way too close to call at that point.
Well it happened. Donald Trump was elected by the US populous getting the majority in the electoral college, despite getting 3 million less votes than Hillary Clinton! This was a continuation of the western world's rebellion against the political establishment. The first impressions of a Trump presidency were an education, with various dictates from his Twitter account, including a couple which "encouraged" major auto manufacturers to cancel plans for expansion in Mexico and relocate the new plants into the United States.
Away from the politics a fully-fledged US economic recovery was confirmed when the Federal Reserve Bank finally raised rates by 25bp in early December followed by non-farm payroll productivity up 3.1% in the third quarter and unemployment down to 4.6% with 178,000 jobs created in November alone. The US equity markets took these along with a Trump presidency as very bullish for the US going forward and raced to a new all-time high of 19,983.26 on the 20th December.
In the UK, the Autumn statement from the Chancellor Phillip Hammond was an exercise in positioning of a government with an uncomfortably small majority. The Treasury was positioned as central to Brexit and he clipped the wings of 'Hard Brexiteers' by taking a trick from private sector CFO's and kitchen sinking the figures placing the Governments economic and political options right in the middle of the worst case scenario zone. With the usual benefit that he will be able to take all the kudos that better performance brings. The FTSE100 was still focussed on exporters and the strength of equities in the United States and had a positive move into the end of December, whilst in fixed income markets all was much quieter with low volumes and not much volatility.
For the Company's portfolio the major transactions were switching out of Enterprise Inns 6.875% 2025 into Unique Pubs 7.385% 2024 to pick up yield and shorten duration. Taking profits in Old Mutual 8.875% 2025 and redeploying the proceeds into Partnership 9.5% 2025 and Permanent TSB 8.625% perpetual, we opened a holding in 1st Credit 11% 2020 below par. This company has subsequently been bid for by Justicia Group and we would expect these bonds to be called once the deal goes through towards the end of the first quarter. We also increased our US$ exposure in the guise of Louis Dreyfus 8.25% perpetual and Trafigura 7.625% perpetual.
The equity element of the portfolio saw sales for Greencoat UK Wind, SQN Asset Finance and NextEnergy Solar Fund as medium term investment targets were met. We also partially sold New River Retail downsizing the holding on a premium to NAV of 17% and a forecast yield of 5.9%.
We continue to look for opportunities in both bond and equity markets which meet the Company's requirements, we believe that the new issue market may offer some of these in both areas, and market volatility will continue to give a second chance to invest in some of the existing holdings which are currently too high to add to, or throw up new ones which we do not own.
The calendar year of 2017 has many political events ahead to provide such volatility. The continuing governing by Twitter by President Trump, the French presidential elections, German general elections, and of course Brexit negotiations will be giving plenty of headlines for the next two years.
Ian Francis
New City Investment Managers
3 March 2017
Condensed Income Statement (Unaudited)
For the six months ended 31 December 2016
| Six months ended 31 December 2016 | ||||
| Notes | Revenue | Capital | Total | |
| £ '000 | £'000 | £'000 | ||
| Capital gains on investments | ||||
| Gains on investments | 3 | - | 10,022 | 10,022 |
| Exchange gains | - | 143 | 143 | |
| Revenue | ||||
| Income | 4 | 10,077 | - | 10,077 |
| Total income | 10,077 | 10,165 | 20,242 | |
| Expenses | ||||
| Investment management fee | 5 | (679) | (226) | (905) |
| Other expenses | (338) | (10) | (348) | |
| Total expenses | (1,017) | (236) | (1,253) | |
| Profit before finance costs and taxation | 9,060 | 9,929 | 18,989 | |
| Finance costs | ||||
| Interest payable and similar charges | (125) | (42) | (167) | |
| Profit before taxation | 8,935 | 9,887 | 18,822 | |
| Irrecoverable withholding tax | (132) | - | (132) | |
| Profit after taxation | 8,803 | 9,887 | 18,690 | |
| Earnings per ordinary share (pence) | 6 | 2.42 | 2.72 | 5.14 |
The total column of this statement represents the Company's Income Statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement are derived from continuing operations.
No operations were acquired or discontinued during the period.
Condensed Income Statement (Unaudited)
For the six months ended 31 December 2015
| Six months ended 31 December 2015 | ||||
| Notes | Revenue | Capital | Total | |
| £ '000 | £'000 | £'000 | ||
| Capital losses on investments | ||||
| Losses on investments | 3 | - | (8,711) | (8,711) |
| Exchange losses | - | (6) | (6) | |
| Revenue | ||||
| Income | 4 | 9,864 | - | 9,864 |
| Total income | 9,864 | (8,717) | 1,147 | |
| Expenses | ||||
| Investment management fee | 5 | (665) | (222) | (887) |
| Other expenses | (358) | (34) | (392) | |
| Total expenses | (1,023) | (256) | (1,279) | |
| Profit/(loss) before finance costs and taxation | 8,841 | (8,973) | (132) | |
| Finance costs | ||||
| Interest payable and similar charges | (157) | (52) | (209) | |
| Profit/(loss) before taxation | 8,684 | (9,025) | (341) | |
| Irrecoverable withholding tax | (185) | - | (185) | |
| Profit/(loss) after taxation | 8,499 | (9,025) | (526) | |
| Earnings per ordinary share (pence) | 6 | 2.38 | (2.53) | (0.15) |
The total column of this statement represents the Company's Income Statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement are derived from continuing operations.
No operations were acquired or discontinued during the period.
Condensed Income Statement (Audited)
For the year ended 30 June 2016
| Year ended 30 June 2016 | ||||
| Notes | Revenue | Capital | Total | |
| £'000 | £'000 | £'000 | ||
| Capital losses on investments | ||||
| Losses on investments | 3 | - | (14,281) | (14,281) |
| Exchange gains | - | 75 | 75 | |
| Revenue | ||||
| Income | 4 | 18,692 | - | 18,692 |
| Total income | 18,692 | (14,206) | 4,486 | |
| Expenses | ||||
| Investment management fee | 5 | (1,328) | (443) | (1,771) |
| Other expenses | (653) | (61) | (714) | |
| Total expenses | (1,981) | (504) | (2,485) | |
| Profit/(loss) before finance costs and taxation | 16,711 | (14,710) | 2,001 | |
| Finance costs | ||||
| Interest receivable | 1 | - | 1 | |
| Interest payable and similar charges | (295) | (98) | (343) | |
| Profit/(loss) before taxation | 16,417 | (14,808) | 1,609 | |
| Irrecoverable withholding tax | (261) | - | (261) | |
| Profit/(loss) after taxation | 16,156 | (14,808) | 1,348 | |
| Earnings per ordinary share (pence) | 6 | 4.50 | (4.12) | 0.38 |
The total column of this statement represents the Company's Income Statement, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement are derived from continuing operations.
No operations were acquired or discontinued during the year.
Condensed Balance Sheet
As at 31 December 2016
| As at | As at | As at | ||
| 31 December 2016 | 31 December 2015 | 30 June 2016 | ||
| Notes | (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | ||
| Non-current assets | ||||
| Investments held at fair value | 227,389 | 218,896 | 211,882 | |
| Current assets | ||||
| Other receivables | 4,953 | 4,412 | 3,952 | |
| Cash and cash equivalents | 1,626 | 4,878 | 8,201 | |
| 6,579 | 9,290 | 12,153 | ||
| Total assets | 233,968 | 228,186 | 224,035 | |
| Current liabilities | ||||
| Bank loan facility | 7 | (25,000) | (25,000) | (25,000) |
| Other payables | (246) | (214) | (1,208) | |
| Total liabilities | (25,246) | (25,214) | (26,208) | |
| Net assets | 208,722 | 202,972 | 197,827 | |
| Stated capital and reserves | ||||
| Stated capital account | 155,410 | 154,398 | 154,397 | |
| Special distributable reserve | 50,385 | 50,385 | 50,385 | |
| Capital reserve | (12,438) | (16,800) | (22,325) | |
| Revenue reserve | 15,365 | 14,989 | 15,370 | |
| Equity shareholders' funds | 208,722 | 202,972 | 197,827 | |
| Net asset value per ordinary share (pence) | 9 | 57.47 | 56.86 | 54.68 |
Statement of Changes in Equity
For the six months ended 31 December 2016 (unaudited)
| Stated | Special | |||||
| capital | distributable | Capital | Revenue | |||
| account | reserve | reserve | reserve | Total | ||
| Notes | £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 1 July 2016 | 154,397 | 50,385 | (22,325) | 15,370 | 197,827 | |
| Total comprehensive income for the period: | ||||||
| Profit for the period | - | - | 9,887 | 8,803 | 18,690 | |
| Transactions with shareholders recognised directly in equity: | ||||||
| Dividends paid | 2 | - | - | - | (8,808) | (8,808) |
| Issue of shares | 1,013 | - | - | - | 1,013 | |
| At 31 December 2016 | 155,410 | 50,385 | (12,438) | 15,365 | 208,722 | |
For the six months ended 31 December 2015 (unaudited)
| Stated | Special | |||||
| capital | distributable | Capital | Revenue | |||
| account | reserve | reserve | reserve | Total | ||
| Notes | £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 1 July 2015 | 150,963 | 50,385 | (7,775) | 15,103 | 208,676 | |
| Total comprehensive income for the period: | ||||||
| (Loss)/Profit for the period | - | - | (9,025) | 8,499 | (526) | |
| Transactions with shareholders recognised directly in equity: | ||||||
| Dividends paid | 2 | - | - | - | (8,613) | (8,613) |
| Issue of shares | 3,435 | - | - | - | 3,435 | |
| At 31 December 2015 | 154,398 | 50,385 | (16,800) | 14,989 | 202,972 |
For the year ended 30 June 2016 (audited)
| Stated | Special | ||||||||
| capital | distributable | Capital | Revenue | ||||||
| Account | reserve | reserve | reserve | Total | |||||
| Notes | £'000 | £'000 | £'000 | £'000 | £'000 | ||||
| At 1 July 2015 | 150,963 | 50,385 | (7,775) | 15,103 | 208,676 | ||||
| Total comprehensive income for the year: | |||||||||
| (Loss)/Profit for the year | - | - | (14,808) | 16,156 | 1,348 | ||||
| Reserve transfer | - | - | 258 | (258) | - | ||||
| Transactions with owners recognised directly in equity: | |||||||||
| Dividends paid | 2 | - | - | - | (15,631) | (15,631) | |||
| Issue of shares | 22,825 | - | - | - | 22,825 | ||||
| Buyback of ordinary shares for Treasury | (19,391) | - | - | - | (19,391) | ||||
| At 30 June 2016 | 154,397 | 50,385 | (22,325) | 15,370 | 197,827 | ||||
Cash Flow Statement
For the six months ended 31 December 2016
| Six months | Six months | ||
| ended | ended | Year ended | |
| 31 December 2016 (unaudited) | 31 December 2015 (unaudited) | 30 June 2016 (audited) | |
| £'000 | £'000 | £'000 | |
| Operating activities | |||
| Profit before finance costs and taxation | 18,989 | (132) | 2,001 |
| (Gains)/losses on investments | (10,022) | 8,711 | 14,281 |
| Effective yield | (414) | (363) | (625) |
| Exchange (gains)/losses | (143) | 6 | (75) |
| Increase in other receivables | (1,001) | (869) | (409) |
| (Decrease)/increase in other payables | (10) | (4) | 31 |
| Net cash inflow from operating activities before interest and taxation | 7,399 | 7,349 | 15,204 |
| Interest received | - | - | 1 |
| Interest paid | (167) | (209) | (371) |
| Irrecoverable withholding tax paid | (132) | (185) | (261) |
| Net cash inflow from operating activities | 7,100 | 6,955 | 14,567 |
| Investing activities | |||
| Purchases of investments | (35,807) | (35,373) | (65,791) |
| Sales of investments | 30,735 | 30,294 | 62,410 |
| Net cash outflow from investing activities | (5,072) | (5,079) | (3,381) |
| Financing activities | |||
| Equity dividends paid | (8,808) | (8,613) | (15,631) |
| Drawdown of bank loan facility | - | 2,000 | 2,000 |
| Issue of ordinary shares | 1,013 | 3,435 | 3,434 |
| Net cash outflow from financing activities | (7,795) | (3,178) | (10,197) |
| (Decrease)/increase in cash and cash equivalents | (5,767) | (1,302) | 989 |
| Cash and cash equivalents at the start of the period | 8,201 | 6,220 | 6,220 |
| Movement on bank overdraft | (951) | (34) | 951 |
| Cashflow | (5,767) | (1,302) | 989 |
| Exchange gains/(losses) | 143 | (6) | 75 |
| Cash and cash equivalents at the end of the period* | 1,626 | 4,878 | 8,201 |
*Net debt includes cash held at bank and bank loan facility.
Notes to the Accounts
- Basis of Preparation
The unaudited interim results which cover the six month period to 31 December 2016 have been prepared in accordance with International Accounting Standard ('IAS') 34 - 'Interim Financial Reporting', and the accounting polices as set out in the statutory accounts of the Company for the year ended 30 June 2016.
Going concern
The condensed consolidated financial statements have been prepared on the going concern basis. In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting Council. After making enquiries and bearing in mind the nature of the Company's business and assets, the Directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
2. Dividends
Amounts recognised as distributions to equity holders in the period:
| Six months ended 31 December 2016 | Six months ended 31 December 2015 | Year ended 30 June 2016 | ||||
| Rate | Rate | Rate | ||||
| £'000 | (pence) | £'000 | (pence) | £'000 | (pence) | |
| In respect of the previous period: | ||||||
| Fourth interim dividend | 5,246 | 1.45 | 5,161 | 1.45 | 5,161 | 1.45 |
| In respect of the period under review: | ||||||
| First interim dividend | 3,562 | 0.98 | 3,452 | 0.97 | 3,452 | 0.97 |
| Second interim dividend | - | - | - | - | 3,509 | 0.97 |
| Third interim dividend | - | - | - | - | 3,509 | 0.97 |
| 8,808 | 2.43 | 8,613 | 2.42 | 15,631 | 4.36 | |
A second interim dividend in respect of the year ending 30 June 2017 of 0.98p per ordinary share was paid on 28 February 2017 to shareholders on the register on 27 January 2017. In accordance with International Financial Reporting Standards ('IFRS') this dividend has not been included as a liability in these accounts.
3. Investment Gains
Included within gains on investments for the period ended 31 December 2016 are realised gains of £86,000 and unrealised gains of £9,936,000.
4. Income
The breakdown of income for the period was as follows:
| Six months ended 31 December 2016 | Six months ended 31 December 2015 | Year ended 30 June 2016 | ||||
| £'000 | £'000 | £'000 | ||||
| Income from investments: | ||||||
| Dividend income | 865 | 800 | 1,471 | |||
| Preference share income | 581 | 1,110 | 1,180 | |||
| Interest on fixed interest securities | 8,631 | 7,954 | 16,041 | |||
| Total income | 10,077 | 9,864 | 18,692 | |||
- Investment Management Fee
The Company's investment manager is CQS which has delegated this function to NCIM. The contract between the Company and CQS may be terminated by either party giving not less than 12 months' notice of termination. CQS receive a basic monthly fee at the rate of 0.8 per cent per annum of the Company's total assets (less current liabilities other than bank borrowings), payable in arrears up to and including £200,000,000 and 0.7 per cent per annum above this. During the period investment management fees of £905,528 were incurred, of which £151,295 were payable at the period end.
6. Earnings per Ordinary Share
The revenue earnings per ordinary share is based on the net profit after taxation of £8,803,000 (31 December 2015: £8,499,000 and 30 June 2016: £16,156,000) and on a weighted average of 363,161,029 (31 December 2015: 356,988,325 and 30 June 2016: 359,441,578) ordinary shares in issue throughout the period.
The capital return per ordinary share is based on a net capital gain of £9,887,000 (31 December 2015: a net capital loss of £9,025,000 and 30 June 2016: a net capital loss of £14,808,000) and on a weighted average of 363,161,029 (31 December 2054: 356,988,325 and 30 June 2016: 359,441,578) ordinary shares in issue throughout the period.
7. Bank Loan Facility
| December 2016 | December 2015 | June 2016 | |
| £'000 | £'000 | £'000 | |
| Bank loan facility | 25,000 | 25,000 | 25,000 |
The Company has a short term loan facility with Scotiabank.
As at the period end the unsecured loan facility had a limit of £30 million of which £25 million was drawn down as at 31 December 2016.
- Stated Capital Account
Authorised
The authorised share capital of the Company is represented by an unlimited number of ordinary shares of no par value.
| Allotted, called up and fully-paid | Number of | |
| Ordinary shares | £'000 | |
| Total issued share capital at 1 July 2016 | 361,774,417 | 154,397 |
| 1,750,000 ordinary shares of no par value issued on 9 August 2016 | 1,750,000 | 1,013 |
| Total issued share capital at 31 December 2016 | 363,524,417 | 155,410 |
On 9 August 2016 the Company allotted 1,750,000 ordinary shares of no par value, issued from Treasury, for cash at 57.87p per share.
The balance of shares left in Treasury as at 31 December 2016 was 34,427,441.
9. Net Asset Value per Ordinary share
The net asset value per ordinary share is based on net assets at the period end of £208,722,000 (31 December 2015: £202,972,000 and 30 June 2016: £197,827,000) and on 363,524,417 (31 December 2015: 356,988,325 and 30 June 2016: 361,774,417) ordinary shares, being the number of ordinary shares in issue at the period end.
10. Related Parties
The following are considered related parties: the Board of Directors ("the Board") and CQS/New City Investment Managers ("the Investment Manager").
All transactions with related parties are carried out on an arms length basis.
There are no other transactions with the Board other than aggregated remuneration for services as Directors. There are no outstanding balances to the Board at the period end.
Details of the fee arrangement with the Investment Manager are disclosed in note 5.
- Financial Information
These are not statutory accounts in terms of Section 434 of the Companies Act 2006 and have not been audited or reviewed by the Company's auditors. The information for the year ended 30 June 2016 has been extracted from the latest published financial statements which received an unqualified audit report and have been filed with the Registrar of Companies. No statutory accounts in respect of any period after 30 June 2016 have been reported on by the Company's auditors or delivered to the Registrar of Companies.
- The interim report for the six months ended 31 December 2016 will be posted to shareholders and made available on the website www.ncim.co.uk. Copies may also be obtained from the Company's registered office, Ordnance House, 31 Pier Road, St. Helier, Jersey, JE4 8PW, Channel Islands.
Directors' Statement of Principal Risks and Uncertainties
The Company's assets consist principally of listed 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, financial, earnings and dividend, operational and regulatory matters. These risks, and the way in which they are managed, are described in more detail under the heading 'Principal risks and risk management' within the Directors' Report and Business Review contained within the Company's annual report and accounts for the year ended 30 June 2016. The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the rest of the Company's financial year.
Directors' Responsibility Statement in Respect of the Interim Report
We confirm that to the best of our knowledge:
· the condensed set of financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;
· the Chairman's Statement and Investment Manager's Review includes a fair review of the information required by the Disclosure Guidance 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 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 that period, and any changes in the related party transactions described in the last Annual Report that could do so.
On behalf of the Board
J G West
Chairman
3 March 2017