GBP '000 GBP '000 GBP '000 NET CASH INFLOW FROM OPERATING ACTIVITIES 318 501 382 INVESTING ACTIVITIES Purchase of investments (6,500) (2,722) (12,725) Sale of investments 8,931 8 3,280 NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES FINANCING 2,431 (2,714) (9,445) Equity dividend paid (994) (994) (994) NET CASH INFLOW/(OUTFLOW) AFTER FINANCING 1,755 (3,207) (10,057) INCREASE /(DECREASE) IN CASH 1,755 (3,207) (10,057) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Increase/(Decrease) in cash resulting from cash flows 1,755 (3,207) (10,057) Exchange movements (1,035) (612) 414 Movement in net funds 720 (3,819) (9,643) Net funds at start of period/year 10,962 20,605 20,605 NET FUNDS AT END OF PERIOD/YEAR 11,682 16,786 10,962 RECONCILIATION OF PROFIT BEFORE FINANCE COSTS AND TAXATION TO NET CASH FLOW FROM OPERATING ACTIVITIES Profit before finance costs and taxation * 9,922 4,582 908 (Gains)/Losses on investments (10,677) (5,022) 212 Exchange differences 1,035 612 (414) Management fee rebates (1) (2) (4) Revenue profit before finance costs and taxation 279 170 702 Decrease in debtors 36 120 81 Increase/(Decrease) in creditors 2 209 (407) Taxation - - 2 Management fee rebates 1 2 4 NET CASH INFLOW FROM OPERATING ACTIVITIES 318 501 382
* Includes dividends received in cash of GBP693,000 (30th June 2020: GBP1,977,000) (2019: GBP1,013,000), accumulation income of GBP173,000 (30th June 2020: GBP245,000) (2019: GBP225,000) and interest income of GBP3,000 (30th June 2020: GBP250,000) (2019: GBP167,000)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
for the six months ended 31st December 2020
1. ACCOUNTING POLICIES
The condensed consolidated interim financial statements comprise the unaudited results of the Company and its subsidiary, JIT Securities Limited (together "the Group"), for the six months to 31st December 2020. The comparative information for the six months to 31st December 2019 and the year to 30th June 2020 are a condensed set of accounts and do not constitute statutory accounts under the Companies Act 2006. Full statutory accounts for the year to 30th June 2020 included an unqualified audit report, did not contain any statements under section 498 of the Companies Act 2006, and have been filed with the Registrar of Companies.
The half year financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', and are presented in pounds sterling, as this is the Group's functional currency.
The same accounting policies have been followed in the interim financial statements as applied to the accounts for the year ended 30th June 2020, which were prepared in accordance with IFRSs.
No segmental reporting is provided as the Group is engaged in a single segment.
2. TOTAL INCOME
Year ended 30th June Six months ended 31st December 2020 Six months ended 31st December 2019 2020 GBP'000 GBP'000 GBP'000 Income from Investments UK net dividend income 677 1,045 1,844 Unfranked investment income 118 82 325 795 1,127 2,169 Other Income Bank interest receivable 3 167 250 Loan interest income - - - 3 167 250 Year ended 30th June Six months ended 31st December 2020 Six months ended 31st December 2019 2020 GBP'000 GBP'000 GBP'000 Total income comprises Dividends 795 1,127 2,169 Other income 3 167 250 798 1,294 2,419
3. MANAGEMENT FEES
Year ended 30th June Six months ended 31st December 2020 Six months ended 31st December 2019 2020 GBP'000 GBP'000 GBP'000 Investment management fee 370 364 697 Performance fee - 623 623 370 986 1,320
The Investment Manager receives a management fee, payable quarterly in arrears, equivalent to an annual 0.75 per cent of total assets after the deduction of the value of any investments managed by the Investment Manager or its associates (as defined in the investment management agreement).
The Company agreed with the Investment Manager that the performance fee was not appropriate in a low interest rate environment. Accordingly the performance fee agreement ceased with effect from 1st January 2020.
4. RETURN PER ORDINARY SHARE
Year ended 30th Six months ended 31st December June 2020 Six months ended 31st December 2019 2020 GBP'000 GBP'000 GBP'000 Revenue return 279 792 1,325 Capital return 9,643 3,790 (417) Total return 9,922 4,582 908 Weighted average number of Ordinary 71,023,695 71,023,695 71,023,695 shares Revenue return per Ordinary share 0.39p 1.11p 1.87p Capital return per Ordinary share 13.58p 5.34p (0.59)p Total return per Ordinary share 13.97p 6.45p 1.28p
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