1,621 1,621 2,432
30th June
2021
GBP'000
Income
Proposed interim dividend of 10.75p per share ____811_
811
This proposed interim dividend was approved by the Board on 2nd August 2021, has been calculated based on shares in issue at 22nd July 2021, and has not been included as a liability at 30th June 2021.
4. Valuation of financial instruments
IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note 1 Investments, as set out in the Company's Annual Report and Financial Statements for the year ended 31st December 2020.
The fair value hierarchy has the following levels:
Level 1 - Unadjusted prices quoted in active markets for identical assets and liabilities.
Level 2 - Having inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (ie as prices) or indirectly (ie derived from prices).
Level 3 - Having inputs for the asset or liability that are not based on observable data.
30th June 2021 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss GBP'000 GBP'000 GBP'000 GBP'000 UK Equity Listed 143,761 - - 143,761 AIM traded stocks 26,114 - - 26,114 Delisted stock - 2 - 2 Investment in subsidiary undertaking - - - - Net fair value 169,875 2 - 169,877 30th June 2020 Level 1 Level 2 Level 3 Total GBP'000 GBP'000 GBP'000 GBP'000 Financial assets at fair value through profit or loss UK Equity Listed 98,621 - - 98,621 AIM traded stocks 24,138 - - 24,138 Delisted stock - 2 - 2 Investment in subsidiary undertaking - - 758 758 Net fair value 122,759 2 758 123,519 31st December 2020 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss GBP'000 GBP'000 GBP'000 GBP'000 UK Equity Listed 123,654 - - 123,654 AIM traded stocks 33,591 - - 33,591 Delisted stock - 2 - 2 Investment in subsidiary - - 758 758 Net fair value 157,245 2 758 158,005
There were no transfers between Level 1 and Level 2 during the periods.
A reconciliation of fair value measurements in Level 3 is set out in the following table.
30th June 30th June 31st December 2021 2020 2020 GBP'000 GBP'000 GBP'000 Opening Balance 758 758 758 Purchases - - - Sales - - - Total gains or losses included in gains on investments in the Income Statement: - on assets sold - - - - on assets held at period end (758) - - Closing Balance - 758 758
The Level 3 investment relates to the Company's subsidiary, Discretionary Unit Fund Managers Limited, which has been valued based on the most recent estimated NAV, the value of which was GBP2 as at 30th June 2021. 5. Related Party Transactions
Under IAS 24, the Directors have been identified as related parties. Their fees and interests for the year ended 31st December 2020 have been disclosed in the Directors' Annual Remuneration Report within the 2020 Annual Report and Financial Statements.
During the period the Company had the following transactions with Discretionary Unit Fund Managers Limited, its subsidiary undertaking:
30th June 30th June 31st December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Dividends received 758 - -
758 - -
Amounts owed by/(due to) subsidiary undertaking - 78 (758) 6. Going Concern
The Company's assets comprise mainly realisable equity securities and cash and the value of its assets is greater than its liabilities. Additionally, after reviewing the Company's budget including the current financial resources and projected expenses for the next twelve months and its medium-term plans, the Directors believe that the Company's resources are adequate for continuing in business for the foreseeable future.
Based on the above, the Board is satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended 31st December 2020.
In the view of the Board, the outbreak of an infectious respiratory illness caused by coronavirus known as COVID-19 has fundamentally altered the nature of the risks reported in the Annual Report and Financial Statements. COVID-19 has resulted in travel restrictions, closed international borders, disrupted supply chains and adversely affected consumer demand. The impact of COVID-19 has severely affected the economies of many nations across the entire global economy and capital markets and could continue with extents that cannot necessarily be foreseen.
DIRECTORS' STATEMENT OF RESPONSIBILITY FOR THE HALF YEARLY FINANCIAL REPORT
The Directors are responsible for preparing the Half Yearly financial report in accordance with applicable law and regulations.
The Directors confirm that to the best of their knowledge: ? the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim financial
reporting"; and ? the Half Yearly management report includes a fair review of the information required by DTR 4.2.7R and 4.2.8R.
This report was approved on 2nd August 2021.
Dr D. M. BRAMWELL Chairman
PORTFOLIO STATEMENT
Details of the investments held within the portfolio as at 30th June 2021 are given below by market value:
Holdings Market Value UK Investments 30th June 2021 31st December 2020 30th June 2021 31st December 2020 GBP'000 GBP'000 Treatt 2,500,000 3,500,000 29,125 28,490 Hill & Smith 1,434,230 1,434,230 21,427 20,194 Macfarlane 17,250,000 17,250,000 20,010 14,869 Vp 1,800,000 1,800,000 16,488 13,500 Spirax-Sarco Engineering 120,714 120,714 16,423 13,635 Electrocomponents 1,300,000 1,300,000 13,364 11,317 Colefax 2,365,000 2,365,000 11,352 9,696 Renold 30,000,000 30,000,000 6,330 3,600 Eleco 4,520,781 4,520,781 5,967 3,526 Vitec 400,000 400,000 5,600 3,656 IMI 275,000 275,000 4,727 3,204 Morgan Advanced Materials 1,000,000 1,000,000 3,530 3,110 Menzies (John) 882,142 882,142 2,748 2,276 Bellway 80,000 80,000 2,591 2,364 Carr's 1,750,000 1,750,000 2,424 2,223 Titon 1,265,000 1,265,000 1,670 1,139 Castings 400,000 400,000 1,576 1,448 National Grid 137,500 137,500 1,266 1,189 GlaxoSmithKline 70,000 70,000 994 939 Dialight 238,095 238,095 760 600 Santander UK 10.375% 400,000 400,000 708 640 Non Cumulative Preferred LPA 650,000 650,000 455 520 Coral Products 2,000,000 2,000,000 250 170 Chamberlin 1,000,000 1,000,000 90 60 Dyson 1,000,000 1,000,000 2 2 Costain 41 41 - - Discretionary Unit Fund Managers 2 93,600 - 758 Scapa - 8,000,000 - 14,880
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