MAJEDIE INVESTMENTS PLC
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
The full Annual Report and Accounts (“Annual Report”) will shortly be available via the Company's website at www.majedieinvestments.com or by contacting the Company Secretary on telephone number 0207 795 9566.
The Directors present the results of the Company for the year ended 30 September 2021.
INVESTMENT OBJECTIVE
The Company's investment objective is to maximise total shareholder return whilst increasing dividends by more than the rate of inflation over the long term.
|
Highlights |
2021 |
2020 |
|
Total shareholder return (including dividends): |
37.1% |
-27.6% |
|
Net asset value total return (debt at fair value including dividends): |
22.5% |
-11.7% |
|
Net asset value total return (debt at par including dividends): |
20.6% |
-11.6% |
|
Total dividends (per share): |
11.4p |
11.4p |
|
Directors' valuation of investment in Majedie Asset Management Limited: |
£25.2m |
£31.0m |
YEAR'S SUMMARY
|
Capital Structure |
Note (see below) |
2021 |
2020 |
% |
|
|
As at 30 September |
|
|
|
|
|
|
Total assets |
1 |
£173.0m |
£152.2m |
+13.7 |
|
|
Which are attributable to: |
|
|
|
|
|
|
Financial liabilities (debt at par value) |
2 |
£20.8m |
£20.9m |
+15.9 |
|
|
Equity Shareholders Funds |
|
£152.2m |
£131.3m |
|
|
|
Gearing |
4 |
12.3% |
11.0% |
|
|
|
Potential Gearing |
4 |
13.7% |
15.9% |
|
|
|
Total returns (capital growth plus dividends) |
5 |
|
|
|
|
|
Net asset value per share (debt at par value) |
3 |
+20.6% |
-11.6% |
|
|
|
Net asset value per share (debt at fair value) |
3 |
+22.5% |
-11.7% |
|
|
|
Share price |
|
+37.1% |
-27.6% |
|
|
|
Capital returns |
|
|
|
|
|
|
Net asset value per share (debt at par value) |
3 |
287.1p |
247.7p |
+15.9 |
|
|
Net asset value per share (debt at fair value) |
|
281.4p |
239.5p |
+17.5 |
|
|
Share price |
|
230.0p |
176.5p |
+30.3 |
|
|
Discount of share price to net asset value per share |
|
|
|
|
|
|
Debt at par value |
|
19.9% |
28.7% |
|
|
|
Debt at fair value |
|
18.3% |
26.3% |
|
|
|
Revenue and dividends |
|
|
|
|
|
|
Net revenue available to Equity Shareholders |
|
£5.0m |
£4.8m |
|
|
|
Net revenue return per share |
|
9.4p |
9.1p |
+3.3 |
|
|
Total dividends per share |
|
11.4p |
11.4p |
0.0 |
|
|
Total administrative expenses and management fees |
|
£1.6m |
£1.7m |
|
|
|
Ongoing Charges Ratio |
6 |
1.2% |
1.3% |
|
|
Notes:
Alternative Performance Measures (APM) definitions used in the Annual Report are as follows:
1. Total Assets : Total assets are defined as total assets less current liabilities.
2. Debt at par or fair value : Par value is the carrying value of the debenture which will equate to the nominal value at maturity. Fair value is the estimated market value the Company would pay (on the relevant reporting date), as a willing buyer, to a debenture holder, as a willing seller, in an arms-length transaction.
3. Net Asset Value : The Net Asset Value (NAV) is the value of all of the Company's assets less all liabilities. The NAV is usually expressed as an amount per share.
4. Gearing and Potential Gearing : Gearing represents the amount of borrowing that a company has and is calculated using the Association of Investment Companies (AIC) guidance. It is usually expressed as a percentage of equity shareholders' funds and a positive percentage or ratio above one shows the extent of the level of borrowings. Gearing is calculated as borrowings less net current assets to arrive at a net borrowings figure. Potential Gearing excludes cash from the calculation. Details of the calculation for the Company are in note 22.
5. Total Return : Total returns include any dividends paid as well as capital returns as a result of an increase or decrease in a company's share price or NAV.
6. Ongoing Charges Ratio (OCR) : Ongoing charges are a measure of the regular ongoing administration costs of running a company, as calculated in accordance with AIC guidance. Further information is shown in the Business Review section of the Strategic Report.
7. Adjusted Capital and Reserves : This is as defined in the debenture Trust Deed. It essentially removes unrealised gains from the Company's reserves (see investment policy.
8. Adjusted Equity Shareholders' Funds : Equity Shareholders' Funds restated to include debt at its fair value, rather than par value (see note 22).
|
Year's high/low |
|
2021 |
2020 |
|
Share price
|
high |
252.5p |
265.0p |
|
low |
176.0p |
138.5p |
|
|
Net asset value – debt at par
|
high |
304.2p |
313.6p |
|
low |
245.0p |
221.0p |
|
|
Discount – debt at par
|
high |
30.0% |
37.8% |
|
low |
13.3% |
4.1% |
|
|
Discount – debt at fair value
|
high |
27.9% |
35.4% |
|
low |
11.2% |
0.6% |
Ten Year Record
to 30 September 2021
|
Year End |
Total Assets £000 |
Equity share-holders' Funds £000 |
NAV Per Share (Debt at par value) Pence |
Share |
Discount % |
Earnings Pence |
Total Dividend** Pence |
Gearing† % |
Potential Gearing† % |
Ongoing Charges Ratio# % |
|
2012 |
146,057 |
112,234 |
215.6 |
155.8 |
27.74 |
4.90 |
10.50 |
9.24 |
30.14 |
1.83 |
|
2013 |
159,013 |
125,166 |
240.5 |
160.0 |
33.47 |
6.80 |
10.50 |
21.47 |
27.04 |
1.73 |
|
2014 |
167,934 |
134,061 |
256.7 |
229.0 |
10.79 |
9.36 |
7.50 |
23.39 |
25.27 |
1.66 |
|
2015 |
183,708 |
149,807 |
281.9 |
257.3 |
8.74 |
9.42 |
8.00 |
21.25 |
22.63 |
1.88 |
|
2016 |
203,917 |
169,986 |
318.1 |
257.1 |
19.18 |
9.25 |
8.75 |
18.46 |
19.96 |
1.58 |
|
2017 |
216,507 |
182,544 |
341.6 |
281.5 |
17.59 |
11.14 |
9.75 |
17.09 |
18.61 |
1.54 |
|
2018 |
199,151 |
178,626 |
334.3 |
277.5 |
16.99 |
12.47 |
11.00 |
10.01 |
11.49 |
1.33 |
|
2019 |
175,621 |
155,074 |
292.3 |
256.0 |
12.42 |
12.92 |
11.40 |
11.50 |
13.25 |
1.34 |
|
2020 |
152,153 |
131,333 |
247.7 |
176.5 |
28.74 |
9.11 |
11.40 |
10.97 |
15.85 |
1.34 |
|
2021 |
172,951 |
152,153 |
287.1 |
230.0 |
19.89 |
9.41 |
11.40 |
12.26 |
13.67 |
1.25 |
Notes:
** Dividends disclosed represent dividends that relate to the Company's financial year. Under International Accounting Standards dividends are not accrued until paid or approved. Total dividends include special dividends paid, if any.
† Calculated in accordance with AIC guidance.
# As of May 2012, under AIC guidance, Ongoing Charges Ratio replaced previous cost ratios.