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