|
Press Release 2015 / Interim Results |
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LIVERMORE INVESTMENTS GROUP LIMITED
UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 30 JUNE 2015
Livermore Investments Group Limited (the "Company" or "Livermore") today announces its interim results for the six months ended 30 June 2015.
For further investor information please go to www.livermore-inv.com.
Enquiries:
Livermore Investments Group Limited +41 43 344 3200
Arden Partners plc +44 (0)20 7614 5917
Steve Douglas
Patrick Caulfield
Chairman's and Chief Executive's Review
Introduction
We are pleased to announce the interim consolidated financial results for Livermore Investments Group Limited (the "Company" or "Livermore") and its subsidiaries (together the "Group") for the six months ended 30 June 2015.
During the first half of 2015, the Group generated net income of USD 1.96m (30 June 2014: USD 10.86m), which represents earnings per share of USD 0.01 (30 June 2014: USD 0.06). The Group paid an interim dividend of USD 5m in March 2015 (USD 0.0256 per share). The NAV of the Group as of 30 June 2015 was USD 0.81 per share after payment of the interim dividend. During the reporting period, management continued to actively manage the financial portfolio and optimized exposure to US credit markets, which continues to provide attractive risk adjusted returns, albeit at a lower rate than prior years.
Wyler Park, our investment property in Bern, Switzerland performed well, generating over CHF 2.7m in rent during the period. The property is fully rented. Valuation of Wyler Park has remained stable.
In September 2015, the lease with SBB for the Wyler Park property was extended from 2019 to 2029. As part of the lease extension agreement, the owner will invest up to a maximum of CHF 3.95m (USD 4.22m) and SBB is expected to invest up to CHF 9m to upgrade the property and allow for additional workspaces.
There were no significant developments in the private equity portfolio during the period.
Financial Review
The NAV of the Group as at 30 June 2015 was approximately USD 157.8m (30 June 2014: 168.2m). The profit after tax for the first half of 2015 was USD 1.96m, which represents earnings per share of USD 0.01. The performance relates largely to gains on the credit portfolio and net income from Wyler Park offset by write downs on certain investments.
|
30 June 2015
|
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30 June 2014
|
|
31 December 2014
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US $m
|
|
US $m
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|
US $m
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Shareholders' funds at beginning of period
|
160.0
|
|
168.4
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|
168.4
|
|
___________
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|
___________
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|
___________
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Income from investments
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14.6
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|
16.8
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|
31.8
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Other income
|
-
|
|
0.5
|
|
0.5
|
Realised (losses) / gains on investments
|
(0.5)
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|
1.2
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|
(1.6)
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Loss on impairment on investments
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(10.8)
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(1.6)
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(8.9)
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Unrealised gains / (losses) on investments
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0.7
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(6.4)
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(9.4)
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Unrealised exchange gains / (losses)
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0.5
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|
-
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(0.6)
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Administration costs
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(1.9)
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(2.7)
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(7.2)
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Net finance costs
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0.4
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(2.4)
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(7.2)
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Tax charge
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(0.2)
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(0.6)
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(0.8)
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|
___________
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|
___________
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|
___________
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Increase / (decrease) in net assets from operations
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2.8
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4.8
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(3.4)
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Purchase of own shares
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-
|
|
-
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|
-
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Dividends paid
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(5.0)
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(5.0)
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|
(5.0)
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|
___________
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___________
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___________
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Shareholders' funds at end of period
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157.8
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|
168.2
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160.0
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------
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------
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------
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Net Asset Value per share
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US $0.81
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US $0.86
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US $0.82
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Livermore's Strategy
The financial portfolio is focused on fixed income instruments which generate regular cash flows and include exposure mainly to senior secured and usually broadly syndicated US loans and to a limited extent emerging market debt through investments in CLOs. This part of the portfolio is geographically focused on the US with some exposure to Europe and emerging markets.
The remaining portfolio is focused on Switzerland and Asia with investments primarily in real estate and select private equity opportunities. Investments are focused on sectors that Management believes will provide superior growth over the mid to long term with relatively low downside risk.
Strong emphasis is given to maintaining sufficient liquidity and low leverage at the overall portfolio level and to re-invest in existing and new investments along the economic cycle.
Repurchase of shares
Between 31 December 2014 and 30 June 2015, the Company did not repurchase any additional shares. On 30 June 2015, the Company held 108,830,818 shares in treasury. Also no additional shares were purchased between 30 June 2015 and before the beginning of the interim closed period.
Dividends
In March 2015, the Company announced and paid an interim dividend of USD 5m (USD 0.0256 per ordinary share).
The Board of Directors will decide on the Company's dividend policy for 2015 based on profitability, liquidity requirements, portfolio performance, market conditions, and the share price of the Group relative to its NAV.
Richard Rosenberg
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Noam Lanir
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Chairman
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Chief Executive
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24 September 2015
REVIEW OF ACTIVITIES
Economic & Investment Environment
Global economic growth was weaker than expected in the first quarter of 2015. US GDP growth amounted to 0.6% and the Chinese economic growth continued to cool. In the Euro area, however, the economy continued to pick up, supported by persistent euro weakness and improved lending conditions on the back of the European Central Bank's (ECB) quantitative easing (QE) program. In Japan, too, the economy gained momentum. In the second quarter, however, US GDP grew by 3.7% as the West Coast port delays and the unusually harsh winter subsided. The Euro area grew by 0.5% in the second quarter whereas Japan GDP declined by 0.3%. Labour conditions continued to improve in the US with the unemployment rate falling to 5.3% in June 2015. Labour force participation rate, however, has remained at historic lows. With continued improvement in labour conditions, the Federal Reserve has indicated raising interest rates sometime this year, causing the US Dollar to appreciate versus other currencies. A stronger US Dollar, slowing economic growth in China, and excess supply has resulted in steep declines in commodity and energy prices, which along with modest wage growth is likely to keep inflation low in the near future.
In January 2015, the ECB announced an extensive QE program to purchase EUR 60bn of government bonds each month until at least September 2016. This resulted in the Euro declining from 1.21 against the US Dollar at the start of the year to 1.05 in March before recovering to 1.11 at the end of June 2015. By April 2015, the EuroStoxx 50 Index had shot up 21.5% from its level at the start of the year. Sovereign bond yields declined significantly with the German bonds yielding just 7.5bps at its lows. In anticipation of the QE program from the ECB and the resultant expected pressure on the Swiss Franc, the Swiss National Bank (SNB) removed the floor of 1.20 Swiss Francs per Euro in January and negative rates to deter safe haven flows into the currency. The Swiss Franc surged higher against most currencies after removal of the floor and closed at 1.042 Swiss Francs per Euro as at 30 June 2015 and Swiss government bond yields declined to yield negative rates across almost all maturities up to 10 years. While European equity markets were generally higher in the first half of the year, a stronger US Dollar and anticipation of increasing rates in the US kept the S&P 500 Index range bound.
Oil prices declined further in January with West Texas Intermediate Crude dropping from USD 58/barrel to USD 51.5/barrel but recovered to end up at USD 60.10/barrel as of 30 June 2015. Despite lower oil prices, supply increased as the OPEC nations produced more oil to retain market share and push leveraged oil producers out of the market. Concerns of a sharp slowdown in China further weighed on oil and commodity prices and prices have dropped further post the reporting period. Lower commodity and energy prices are expected to give a boost to consumers around the world, which may help increase economic growth. At the same time, however, cutbacks in investment spending related to energy and commodity production will likely limit the positive contribution from lower prices in the near term.
High yield and leveraged loans experienced higher volatility as the spectre of higher US interest rates and exposure to energy and commodity issuers dampened investor sentiment. At the same time, continued strong issuance of Collateralized Loan Obligations (CLOs) provided stability to the leveraged loan market. The S&P/LSTA Leveraged Loan Index generated a total return of 2.82% during the first half of the year as compared to a total return of 2.5% from the Bank of America US High Yield Index.
Sources: Swiss National Bank (SNB), European Central Bank (ECB), US Federal Reserve, Bloomberg
Review of Significant Investments
Name
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Book Value US $m
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Wyler Park*
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53.0
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SRS Charminar
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9.1
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Other Real Estate Assets
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1.2
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Total
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63.3
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* Net of related loan.
Wyler Park - Switzerland
Wyler Park is a top quality mixed-use property located in Bern, Switzerland. It has over 16,800 square meters of commercial area, 4,100 square meters of residential area, and another 7,100 square meters available for additional commercial development. The commercial part is leased entirely to SBB (AAA rated), the Swiss national train transportation authority wholly owned by the Swiss Confederation, and serves as the headquarters of their Passenger Traffic division. The commercial lease is 100% linked to inflation. The annual rental income from the commercial area of the project is CHF 4.36m (USD 4.66m).
In September 2015, the lease with SBB for the Wyler Park property was extended from 2019 to 2029. As part of the lease extension agreement, the owner will invest up to a maximum of CHF 3.95m (USD 4.22m) and SBB is expected to invest up to CHF 9m (USD 9.62m) to upgrade the property and allow for additional workspaces.
Following the successful development of 39 residential apartments, the entire property is now fully rented. The annual rental income expected from the residential area is CHF 1.04m (USD 1.11m).
The property generated rent of CHF 2.7m (USD 2.9m) during the first half of 2015.
Livermore is the sole owner of Wyler Park through its wholly owned Swiss subsidiary, Livermore Investments AG. In January 2015, management successfully refinanced the previous loan against Wyler Park with a Swiss bank. The outstanding principal of the new loan facility is CHF 66.5m (USD 71.1m). The facility is committed until at least 30 June 2019. Following the lease extension agreement with SBB from 2019 to 2029, an additional CHF 10m (USD 10.69m) is available under this facility. The loan is a non-recourse loan to Livermore Investments AG backed only by this property.
Management continues to evaluate the potential development of the additional commercial development rights of 7,100 square meters attached to the property.
SRS Charminar - India
Livermore invested USD 20m in 2008 in a leading Indian Real Estate company, in association with SRS Private and other investors as part of a total investment of USD 132.1m. In 2009, the promoters of the investee company were arrested on charges of criminal conspiracy, cheating, and misappropriation of funds. Later it was discovered that the investee company had breached the terms of the investment agreement resulting in a default. On 13 January 2011 the Company Law Board ("CLB") passed an order and allowed Infrastructure Leasing & Financial Services Limited ("IL&FS") to become an 80% shareholder and control the management of the investee company. SRS Charminar and other investors have agreed to a settlement with IL&FS wherein the settlement amount will be paid in four tranches over five years.
The carrying amount of the investment is based on discounted expected cash flows and as of period-end was USD 9.1m (December 2014: USD 9.1m).
Private Equity Funds
The other private equity investments held by the Group are incorporated in the form of Managed Funds (mostly closed end funds) mainly in the emerging economies of India and China. The investments of these funds into their portfolio companies were mostly done in 2008 and 2009. Overall, during 2015 the investment environment relating to most funds was challenging and the Group expects that material exits of portfolio companies should materialize between 2016 and 2018. During the reporting period, Livermore received a distribution-in-kind from Evolution Fund in the form of shares of Whitesmoke Software Ltd, a company listed in Israel. Livermore received USD 0.049m from its investment in Blue Ridge fund, which is primarily liquidated.
The following summarizes the book value of the private equity funds as at 30 June 2015:
Name
|
Book Value US $m
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SRS Private (India)
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2.7
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Evolution Venture (Israel)
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2.6
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Elephant Capital (India)
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0.5
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Panda Capital (China)
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0.4
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Da Vinci (Russia)
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0.3
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Blue Ridge (China)
|
0.06
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India Blue Mountains (India)
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-
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Other investments
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0.6
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Total
|
7.1
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SRS Private: SRS Private is a private equity fund focused on real estate in India. The fund has invested in residential and commercial projects as well as directly in certain real estate companies. The assets are primarily located in and around major cities of India such as Mumbai and Hyderabad.
Evolution Venture: Evolution is an Israel focused venture capital fund. It invests in early stage technology companies. Its investments include a carrier-class Mobile Broadband Wireless (MBW) Wi-Fi solutions company, Whitesmoke Software Ltd (a Tel-Aviv listed language enhancement products company), a software company operating in the digital radio market, a software test tool developer, and a virtualization technology company. The Wi-Fi solutions company, language enhancements product company and the virtualization technology company have been performing well. Livermore received a distribution-in-kind in the form of shares of Whitesmoke Software Ltd as a partial exit from the fund's position in Whitesmoke.
Elephant Capital: India-focused private equity fund, which is AIM quoted (Ticker: ECAP). During the period, the fund sold its remaining holdings in Nitco Limited for GBP 0.16m and bought back 5,000,000 shares for GBP 1m.
As of 28 February 2015, the fund reported an audited NAV of 36 pence per share. Additional information about the fund and its portfolio is available at www.elephantcapital.com.
Panda Capital: Panda Capital is a China-based private equity fund focused on early-stage industrial operations in China. The fund's main investment is in a bamboo flooring company in China, which provides an innovative low cost alternative to hardwood flooring in shipping containers. The manager is in the process of building up operational capacity for product manufacturing.
Da Vinci: The fund is primarily focused on Russia and CIS countries and is primarily invested in the Moscow Exchange and a Ukrainian coal company. The Moscow Exchange continues to perform well in local currency terms. The coal company is located in Western Ukraine. The Group's investment in the fund was valued at USD 0.3m as of 30 June 2015.
Blue Ridge: Blue Ridge is a China focused private equity fund. The fund is mostly wound down and distributed USD 0.049m during the period.
India Blue Mountains: India Blue Mountains is a hotel and hospitality development fund that is developing 4 star and 5 star hotels in India. The fund has acquired land to develop three hotels in prime areas of Mumbai, Pune and Goa. All hotels will be managed by the Accor Group (Novotel brands). Accor has also invested equity and holds a 26% stake in all of the hotels. The Pune hotel is now operational but occupancy has been lower than expected.
During the reporting period, the fund reorganized itself into three separate companies holding the individual assets separately and raised capital to fund operations and interest costs. Livermore decided not to participate in the capital raise as it believes that asset values are not likely to be in excess of the debt load.
Financial Investments and Corporate Bond Trading
The Group manages a financial portfolio valued at USD 90.4m (net of leverage) as at 30 June 2015, which is invested mainly in US credit and fixed income securities.
Senior Secured Loans and CLOs:
The US senior secured loan market continued to offer good risk adjusted returns as a floating rate asset class with a senior secured claim on the borrower and with overall low volatility and low correlation to the equity market. CLOs are managed portfolios invested into diversified pools of senior secured loans and financed with long term financing pre-fixed at the time of issuance.
The US leveraged loan market performed reasonably well during the first half of the year with the Credit Suisse Leveraged Loan Index returning 2.9%, albeit with heightened volatility driven by broader markets, increased participation of retail and high yield funds, and a steady deterioration in energy and commodity prices. As at the end of June 2015, the US loan market twelve month rolling default rate by number of issuers was 0.81%. Livermore expects default rates to stay low in the near future although defaults rates from Oil, Gas and Coal related issuers are likely to underperform and push the default rate higher.
After a record level of US CLO new issue volume in 2014, CLO supply has continued to be strong in 2015. Despite mark-to-market volatility on CLO equity tranches, cash flows to the equity tranche have remained high and even increased as CLO managers take advantage of higher spread and lower loan prices available in the market.
During the first half of 2015 the Group continued to re-invest distributions from its CLO portfolio into new issue CLO transactions. The Group also provided first loss investments into credit facilities to secure and warehouse collateral for its upcoming CLO transactions.
The Group's US CLO portfolio continued to perform well on account of low current default rates, a low default outlook and wider loan spreads. At the end of the reporting period all of our US CLO investments were passing their coverage tests (thereby making dividend distributions). During the period, the CLO portfolio generated USD 11.99m in cash distributions, as well as earning USD 0.41m on warehousing facilities. Cash payments to CLO equity increased somewhat as CLO managers used volatility in the loan market to increase portfolio spreads. The Group has continued to reduce exposure to CLOs with shorter reinvestment periods and focus on new issue CLOs. As at 30 June 2015, over 85% of the Group CLO portfolio is invested in post-crisis CLOs.
Secondary market prices for CLOs fell further in January but rose higher until May as loan prices recovered along with oil prices. In June and subsequent months, however, secondary market prices have declined following a sharp fall in oil and commodity prices, re-emergence of the Greek debt crisis, a currency devaluation from China along with concerns around the first rate hike in the US. While the Group's US CLO portfolio performed better than market, its global and emerging market credit CLO portfolio was further impacted by deteriorating conditions in emerging markets. Management continues to monitor developments in this portfolio.
As few loans mature in the near term and the US economy continues to grow, corporate defaults are expected to remain low with the exception of certain energy related companies. Management believes that the environment should remain attractive for investments in CLO income notes. In the first half of 2015, Livermore launched two new issue cash-flow CLOs as an anchor investor.
While management maintains a positive view on the CLO portfolio, mid-long term performance may be negatively impacted by a strong pull back in the US or European economy or geo-political events that could result in a spike in defaults. Despite positive developments in the overall health of the US economy, we acknowledge the continued below trend growth globally especially in Europe, China and other emerging markets as well as headwinds relating to the potential monetary tightening in the US and geopolitical risks.
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30 June 2015 Amount
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Percentage
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31 Dec 2014 Amount
|
Percentage
|
|
US $000
|
|
US $000
|
|
US CLOs
|
63,556
|
86.0%
|
68,704
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83.6%
|
Global Credit CLOs
|
9,124
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12.3%
|
12,008
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14.6%
|
European CLOs
|
1,234
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1.7%
|
1,505
|
1.8%
|
|
------
|
------
|
------
|
------
|
|
73,914
|
100%
|
82,217
|
100%
|
|
------
|
------
|
------
|
------
|
The following is a table summarizing the financial portfolio as at 30 June 2015
Name
|
30 June 2015
Book Value US $m
|
30 June 2014
Book Value US $m
|
31 December 2014
Book Value US $m
|
Investment in the loan market through CLOs
|
73.9
|
92.0
|
82.2
|
Babylon
|
1.0
|
2.8
|
0.9
|
Corporate Bonds
|
1.7
|
1.6
|
2.0
|
Hedge Funds
|
1.1
|
1.3
|
1.1
|
Other Public Equities
|
1.8
|
2.4
|
1.9
|
Total
|
79.5
|
100.1
|
88.1
|
Total net of leverage
|
90.4*
|
94.0
|
99.1
|
* this figure includes USD 11.3m which the Company invested during the period in the first loss tranche of warehouse facilities for accumulating loans with the intention to transfer these loans to a CLO.
The following table reconciles the review of activities to the Group's financial assets and investment property as at 30 June 2015.
Name
|
30 June 2015
Book Value US $m
|
Significant investments
|
63.3
|
Private Equity Funds
|
7.1
|
Financial portfolio
|
79.5
|
Total
|
149.9
|
Available-for sale financial assets (note 4)
|
91.6
|
Financial assets at fair value through profit or loss (note 5)
|
5.3
|
Net Investment property (notes 8/16)
|
53.0
|
Total
|
149.9
|
Events after the reporting date
Events after the reporting date are described in note 30 to the interim consolidated financial statements.
Litigation
Information is provided in note 28 to the interim condensed consolidated financial statements.
Livermore Investments Group Limited
Condensed Consolidated Statement of Financial Position
as at 30 June 2015
|
Note
|
30 June
2015
Unaudited
|
30 June
2014
Unaudited
|
31 December
2014
Audited
|
|
|
US $000
|
US $000
|
US $000
|
Assets
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
37
|
23
|
42
|
Available-for-sale financial assets
|
4
|
89,367
|
110,144
|
99,374
|
Financial assets at fair value through profit or loss
|
5
|
1,518
|
2,122
|
1,806
|
Investment property
|
8
|
123,812
|
129,953
|
116,609
|
Investments in associate and joint venture
|
9
|
3,750
|
-
|
-
|
Other assets
|
11
|
1,692
|
2,961
|
2,538
|
|
|
--------
|
--------
|
--------
|
|
|
220,176
|
245,203
|
220,369
|
|
|
--------
|
--------
|
--------
|
Current assets
|
|
|
|
|
Trade and other receivables
|
11
|
12,823
|
13,065
|
20,890
|
Available-for-sale financial assets
|
4
|
2,247
|
3,018
|
2,561
|
Financial assets at fair value through profit or loss
|
5
|
3,772
|
5,987
|
3,704
|
Current tax asset
|
|
9
|
-
|
-
|
Derivative financial instruments
|
15
|
192
|
-
|
1,125
|
Cash at bank
|
12
|
12,340
|
9,996
|
3,807
|
|
|
--------
|
--------
|
--------
|
|
|
31,383
|
32,066
|
32,087
|
|
|
--------
|
--------
|
--------
|
Total assets
|
|
251,559
|
277,269
|
252,456
|
|
|
--------
|
--------
|
--------
|
Equity
|
|
|
|
|
Share capital
|
13
|
-
|
-
|
-
|
Share premium and treasury shares
|
13
|
178,597
|
178,597
|
178,597
|
Other reserves
|
|
3,839
|
7,485
|
2,937
|
Retained earnings
|
|
(24,599)
|
(17,908)
|
(21,560)
|
|
|
--------
|
--------
|
--------
|
Total equity
|
|
157,837
|
168,174
|
159,974
|
|
|
--------
|
--------
|
--------
|
Liabilities
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Bank loans
|
16
|
67,511
|
-
|
-
|
Deferred tax
|
|
2,535
|
2,413
|
2,272
|
|
|
--------
|
--------
|
--------
|
|
|
70,046
|
2,413
|
2,272
|
|
|
--------
|
--------
|
--------
|
Current liabilities
|
|
|
|
|
Bank loans
|
16
|
3,315
|
87,635
|
78,092
|
Bank overdrafts
|
12
|
18,817
|
13,527
|
10,355
|
Short term bank loans
|
|
-
|
2,377
|
-
|
Trade and other payables
|
17
|
1,544
|
2,752
|
1,758
|
Current tax payable
|
|
-
|
13
|
5
|
Derivative financial instruments
|
15
|
-
|
378
|
-
|
|
|
--------
|
--------
|
--------
|
|
|
23,676
|
106,682
|
90,210
|
|
|
--------
|
--------
|
--------
|
Total liabilities
|
|
93,722
|
109,095
|
92,482
|
|
|
--------
|
--------
|
--------
|
Total equity and liabilities
|
|
251,559
|
277,269
|
252,456
|
|
|
--------
|
--------
|
--------
|
Net asset valuation per share
|
|
|
|
|
Basic and diluted net asset valuation per share (US $)
|
18
|
0.81
|
0.86
|
0.82
|
|
|
--------
|
--------
|
--------
|
Livermore Investment Group Limited
Condensed Consolidated Statement of Profit or Loss
for the six months ended 30 June 2015
|
|
|
Note
|
Six months
ended
30 June
2015
Unaudited
|
Six months
ended
30 June
2014
Unaudited
|
Year
ended
31 December
2014
Audited
|
|
|
US $000
|
US $000
|
US $000
|
|
|
|
|
|
Investment Income
|
|
|
|
|
Interest and dividend income
|
20
|
11,850
|
14,069
|
26,619
|
Investment property income
|
21
|
2,738
|
2,698
|
5,159
|
Loss on investments
|
22
|
(10,944)
|
(616)
|
(9,885)
|
|
|
------
|
------
|
------
|
Gross profit
|
|
3,644
|
16,151
|
21,893
|
Other income
|
|
-
|
450
|
462
|
Administrative expenses
|
23
|
(1,879)
|
(2,665)
|
(7,219)
|
|
|
------
|
------
|
------
|
Operating profit
|
|
1,765
|
13,936
|
15,136
|
Finance costs
|
24
|
(1,276)
|
(2,457)
|
(7,286)
|
Finance income
|
24
|
1,677
|
11
|
109
|
|
|
------
|
------
|
------
|
Profit before taxation
|
|
2,166
|
11,490
|
7,959
|
Taxation charge
|
|
(206)
|
(634)
|
(755)
|
|
|
------
|
------
|
------
|
Profit for period / year
|
|
1,960
|
10,856
|
7,204
|
|
|
------
|
------
|
------
|
Earnings per share
|
|
|
|
|
Basic and diluted earnings per share (US $)
|
26
|
0.------01
|
0.06
|
0.04
|
|
|
------
|
------
|
------
|
Livermore Investment Group Limited
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2015
|
|
Six months
ended
30 June
2015
Unaudited
|
Six months
ended
30 June
2014
Unaudited
|
Year
ended
31 December
2014
Audited
|
|
|
US $000
|
US $000
|
US $000
|
|
|
|
|
|
Profit for the period / year
|
|
1,960
|
10,856
|
7,204
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
Items that will be reclassified subsequently to profit or loss
|
|
|
|
|
- Available for sale financial assets - fair value losses
|
|
(11,032)
|
(5,258)
|
(17,128)
|
- Foreign exchange gains / (losses) from translation of subsidiaries
|
|
529
|
(3)
|
(626)
|
|
|
------
|
------
|
------
|
|
|
(8,543)
|
5,595
|
(10,550)
|
|
|
------
|
------
|
------
|
Reclassification to profit or loss
|
|
|
|
|
Available for sale financial assets
|
|
|
|
|
- Reclassification to profit or loss due to disposals
|
|
577
|
(2,409)
|
(1,709)
|
- Reclassification to profit or loss due to impairment
|
|
10.828
|
1,616
|
8,861
|
|
|
------
|
------
|
------
|
|
|
11,405
|
(793)
|
7,152
|
|
|
------
|
------
|
------
|
Total comprehensive income for the period / year
|
|
2,862
|
4,802
|
(3,398)
|
|
|
------
|
------
|
------
|
The total comprehensive income for the period is wholly attributable to the owners of the parent company.
Livermore Investments Group Limited
Condensed Consolidated Statement of Changes in Equity
for the period ended 30 June 2015
|
Note
|
Share
capital
|
Share
premium
|
Treasury Shares
|
Share
option reserve
|
Translation reserve
|
Investment revaluation reserve
|
Retained earnings
|
Total
|
|
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
Balance at 1 January 2014
|
|
-
|
215,499
|
(36,902)
|
5,777
|
(788)
|
8,550
|
(23,765)
|
168,371
|
Dividends
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,999)
|
(4,999)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Transactions with owners
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,999)
|
(4,999)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Profit for the year
|
|
-
|
-
|
|
-
|
-
|
-
|
7,204
|
7,204
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
|
|
|
|
|
|
|
|
- Fair value losses
|
|
-
|
-
|
-
|
-
|
-
|
(17,128)
|
-
|
(17,128)
|
- Reclassification to profit or loss due to disposals
|
|
-
|
-
|
-
|
-
|
-
|
(1,709)
|
-
|
(1,709)
|
- Reclassification to profit or loss due to impairment
|
|
-
|
-
|
-
|
-
|
-
|
8,861
|
-
|
8,861
|
Foreign exchange loss arising from translation of subsidiaries
|
|
-
|
-
|
-
|
-
|
(626)
|
-
|
-
|
(626)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Total comprehensive income for the year
|
|
-
|
-
|
-
|
-
|
(626)
|
(9,976)
|
7,204
|
(3,398)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Balance at 31 December 2014
|
|
-
|
215,499
|
(36,902)
|
5,777
|
(1,414)
|
(1,426)
|
(21,560)
|
159,974
|
Dividends
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,999)
|
(4,999)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Transactions with owners
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,999)
|
(4,999)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Profit for the period
|
|
-
|
-
|
-
|
-
|
-
|
-
|
1,960
|
1,960
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
|
|
|
|
|
|
|
|
- Fair value losses
|
|
-
|
-
|
-
|
-
|
-
|
(11,032)
|
-
|
(11,032)
|
- Reclassification to profit or loss due to disposals
|
|
-
|
-
|
-
|
-
|
-
|
577
|
-
|
577
|
- Reclassification to profit or loss due to impairment
|
|
-
|
-
|
-
|
-
|
-
|
10,828
|
-
|
10,828
|
Foreign exchange gain arising from translation of subsidiaries
|
|
-
|
-
|
-
|
-
|
529
|
-
|
-
|
529
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Total comprehensive income for the period
|
|
-
|
-
|
-
|
-
|
529
|
373
|
1,960
|
2,862
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Balance at 30 June 2015
|
|
-
|
215,499
|
(36,902)
|
5,777
|
(885)
|
(1,053)
|
(24,599)
|
157,837
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Comparative period
|
Note
|
Share
capital
|
Share
premium
|
Treasury Shares
|
Share
option reserve
|
Translation reserve
|
Investment revaluation reserve
|
Retained earnings
|
Total
|
|
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
Balance at 1 January 2014
|
|
-
|
215,499
|
(36,902)
|
5,777
|
(788)
|
8,550
|
(23,765)
|
168,371
|
Dividends
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,999)
|
(4,999)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Transactions with owners
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,999)
|
(4,999)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Profit for the period
|
|
-
|
-
|
-
|
-
|
-
|
-
|
10,856
|
10,856
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets
|
|
|
|
|
|
|
|
|
|
- Fair value losses
|
|
-
|
-
|
-
|
-
|
-
|
(5,258)
|
-
|
(5,258)
|
- Reclassification to profit or loss due to disposal
|
|
-
|
-
|
-
|
-
|
-
|
(2,409)
|
-
|
(2,409)
|
- Reclassification to profit or loss due to impairment
|
|
-
|
-
|
-
|
-
|
-
|
1,616
|
-
|
1,616
|
Foreign exchange loss arising from translation of subsidiaries
|
|
-
|
-
|
-
|
-
|
(3)
|
-
|
-
|
(3)
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Total comprehensive income for the period
|
|
-
|
-
|
-
|
-
|
(3)
|
(6,051)
|
10,856
|
4,802
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Balance at 30 June 2014
|
|
-
|
215,499
|
(36,902)
|
5,777
|
(791)
|
2,499
|
(17,908)
|
168,174
|
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Livermore Investments Group Limited
Condensed Consolidated Statement of Cash Flows
for the period ended 30 June 2015
|
Note
|
Six months
ended
30 June
2015
Unaudited
|
Six months
ended
30 June
2014
Unaudited
|
Year
ended
31 December
2014
Audited
|
|
|
US $000
|
US $000
|
US $000
|
Cash flows from operating activities
|
|
|
|
|
Profit before tax
|
|
2,166
|
11,490
|
7,959
|
|
|
|
|
|
Adjustments for:
|
|
|
|
|
Depreciation expense
|
23
|
4
|
-
|
13
|
Interest expense
|
24
|
808
|
2,159
|
3,780
|
Interest and dividend income
|
20
|
(11,850)
|
(14,069)
|
(26,619)
|
Loss on investments
|
22
|
10,944
|
616
|
9,885
|
Exchange differences
|
|
(1,390)
|
298
|
3,506
|
|
|
------
|
------
|
------
|
|
|
682
|
494
|
(1,476)
|
|
|
|
|
|
Changes in working capital
|
|
|
|
|
Decrease / (increase) in trade and other receivables
|
|
9,271
|
(9,422)
|
(16,292)
|
Decrease in trade and other payables
|
|
(162)
|
(30)
|
(1,050)
|
|
|
------
|
------
|
------
|
Cash flows from operations
|
|
9,791
|
(8,958)
|
(18,818)
|
Interest and dividend received
|
|
11,197
|
13,981
|
25,773
|
Tax paid
|
|
(13)
|
(134)
|
(167)
|
|
|
------
|
------
|
------
|
Net cash generated from operating activities
|
|
20,975
|
4,889
|
6,788
|
|
|
------
|
------
|
------
|
Cash flows from investing activities
|
|
|
|
|
Purchase of property, plant and equipment
|
|
-
|
-
|
(32)
|
Acquisition of investments
|
|
(11,118)
|
(22,498)
|
(27,340)
|
Proceeds from sale of investments
|
|
10,743
|
29,038
|
33,262
|
Settlement of derivative
|
|
1,332
|
-
|
-
|
Acquisition of associate
|
9
|
(3,750)
|
-
|
-
|
Capital return of joint venture
|
9
|
-
|
5,000
|
5,000
|
|
|
------
|
------
|
------
|
Net cash from investing activities
|
|
(2,793)
|
11,540
|
10,890
|
|
|
------
|
------
|
------
|
Cash flows from financing activities
|
|
|
|
|
Purchases of own shares
|
|
-
|
-
|
-
|
Proceeds from bank loans
|
|
72,430
|
7,242
|
7,242
|
Repayment of bank loans
|
|
(84,520)
|
(8,704)
|
(11,547)
|
Interest paid
|
|
(870)
|
(2,159)
|
(3,884)
|
Settlement of litigation
|
|
-
|
(26)
|
(26)
|
Dividends paid
|
|
(4,999)
|
(4,999)
|
(4,999)
|
|
|
------
|
------
|
------
|
Net cash from financing activities
|
|
(17,959)
|
(8,646)
|
(13,214)
|
|
|
------
|
------
|
------
|
Net increase / (decrease) in cash and cash equivalents
|
|
223
|
7,783
|
4,464
|
Cash and cash equivalents at the beginning of the period / year
|
|
(6,548)
|
(11,038)
|
(11,038)
|
Exchange differences on cash and cash equivalents
|
|
(181)
|
(276)
|
93
|
Translation differences on foreign operations' cash and cash equivalents
|
|
29
|
-
|
(67)
|
|
|
------
|
------
|
------
|
Cash and cash equivalents at the end of the period / year
|
12
|
(6,477)
|
(3,531)
|
(6,548)
|
|
|
------
|
------
|
------
|
Notes to the Financial Statements
1. Accounting policies
The interim condensed consolidated financial statements of Livermore have been prepared on the basis of the accounting policies and basis of consolidation stated in the 2014 Annual Report, available on www.livermore-inv.com. The application of the IFRS pronouncements that became effective as of 1 January 2015 has no significant impact on the Group's consolidated financial statements.
2. Critical accounting judgements and estimation uncertainty
When preparing the interim condensed consolidated financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results. The judgements, estimates and assumptions applied in the interim condensed consolidated financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last annual consolidated financial statements for the year ended 31 December 2014. The only exception is the estimate of the provision for income taxes which is determined in the interim financial statements using the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.
3. Basis of preparation
These unaudited interim condensed consolidated financial statements are for the six months ended 30 June 2015. They have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union. They do not include all of the information required for full annual consolidated financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2014.
The financial information for the year ended 31 December 2014 is extracted from the Company's consolidated financial statements for the year ended 31 December 2014 which contained an unqualified audit report.
4. Available-for-sale financial assets
|
30 June
2015
Unaudited
|
30 June
2014
Unaudited
|
31 December
2014
Audited
|
|
US $000
|
US $000
|
US $000
|
Non-current assets
|
|
|
|
Fixed income investments
|
73,914
|
91,962
|
82,217
|
Private equities
|
6,187
|
9,114
|
7,891
|
Financial and minority holdings
|
9,266
|
9,068
|
9,266
|
|
------
|
------
|
------
|
|
89,367
|
110,144
|
99,374
|
|
------
|
------
|
------
|
Current assets
|
|
|
|
Public equities investments
|
1,156
|
1,959
|
1,491
|
Hedge funds
|
1,091
|
1,057
|
1,070
|
Other investments
|
-
|
2
|
-
|
|
------
|
------
|
------
|
|
2,247
|
3,018
|
2,561
|
|
------
|
------
|
------
|
For description of each of the above categories, refer to note 6.
During the six months ended 30 June 2015, due to market conditions, management considered the impairment of certain available-for-sale financial assets. Impairment testing indicated that for those financial assets their carrying amount may not be recoverable.
The related impairment charges for the six months ended 30 June 2015, of USD 10.828m (June 2014: USD 1.616m, December 2014: USD 8.861m), are included within loss on investments (note 22), and represent impairment losses arising due to:
|
30 June
2015
Unaudited
|
30 June
2014
Unaudited
|
31 December
2014
Audited
|
|
US $000
|
US $000
|
US $000
|
Significant fall in value
|
2,175
|
1,400
|
5,693
|
Prolonged fall in value
|
3,560
|
216
|
1,328
|
Significant and prolonged fall in value
|
5,093
|
-
|
1,840
|
|
------
|
------
|
------
|
|
10,828
|
1,616
|
8,861
|
|
------
|
------
|
------
|
5. Financial assets at fair value through profit or loss
|
30 June
2015
Unaudited
|
30 June
2014
Unaudited
|
31 December
2014
Audited
|
|
US $000
|
US $000
|
US $000
|
Non-current assets
|
|
|
|
Private equities
|
330
|
569
|
330
|
Real estate entities
|
1,188
|
1,553
|
1,476
|
|
------
|
------
|
------
|
|
1,518
|
2,122
|
1,806
|
|
------
|
------
|
------
|
|
|
|
|
Current assets
|
|
|
|
Fixed income investments
|
1,649
|
1,645
|
1,623
|
Public equity investments
|
2,080
|
3,845
|
1,717
|
Hedge funds
|
43
|
199
|
65
|
Other investments
|
-
|
298
|
299
|
|
------
|
------
|
------
|
|
3,772
|
5,987
|
3,704
|
|
------
|
------
|
------
|
For description of each of the above categories, refer to note 6.
6. Financial assets at fair value
The Group allocates its non-derivative financial assets at fair value (notes 4 and 5) as follows:
· Fixed income investments relate to fixed and floating rate bonds, perpetual bank debt, and investments in the loan market through CLOs.
· Private equities relate to investments in both high growth opportunities in emerging markets and deep value opportunities in mature markets. The company generally invests directly in prospects where it can exert significant influence.
· Financial and minority holdings relate to significant investments (of over USD 5m) which are strategic for the Company and are done in the form of equity purchases or convertible loans. Main investments under this category are in the fields of real estate.
· Hedge funds relate to investments in funds managed by sophisticated investment managers that pursue investment strategies with the goal of generating absolute returns.
· Public equity investments relate to investments in shares of companies listed on public stock exchanges.
· Real estate entities relate to investments in real estate projects.
· Other investments are investments not otherwise included in the categories above.
7. Fair value measurements of financial assets and liabilities
The following table presents financial assets measured at fair value in the consolidated statement of financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
- Level 3: unobservable inputs for the asset or liability.
Valuation of financial assets and liabilities
· Public Equities, and Fixed Income Investments are valued per their closing bid market prices on quoted exchanges, or as quoted by market maker.
The Group values the CLOs based on the valuation reports provided by market makers. CLOs are typically valued by market makers using discounted cash flow models. The key assumptions for cash flow projections include default and recovery rates, prepayment rates and reinvestment assumptions on the underlying portfolios (typically senior secured loans) of the CLOs.
Default and recovery rates: The amount and timing of defaults in the underlying collateral and the amount and timing of recovery upon a default affect are key to the future cash flows a CLO will distribute to the CLO equity tranche. All else equal, higher default rates and lower recovery rates typically lead to lower cash flows. Conversely, lower default rates and higher recoveries lead to higher cash flows.
Prepayment rates: Senior loans can be pre-paid by borrowers. CLOs that are within their reinvestment period may, subject to certain conditions, reinvest such prepayments into other loans which may have different spreads and maturities. CLOs that are beyond their reinvestment period typically pay down their senior liabilities from proceeds of such pre-payments. Therefore the rate at which the underlying collateral prepays impacts the future cash flows that the CLO may generate.
Reinvestment assumptions: A CLO within its reinvestment period may reinvest proceeds from loan maturities, prepayments, and recoveries into purchasing additional loans. The reinvestment assumptions define the characteristics of the loans that a CLO may reinvest in. These assumptions include the spreads, maturities, and prices of such loans. Reinvestment into loans with higher spreads and lower prices will lead to higher cash flows. Reinvestment into loans with lower spreads will typically lead to lower cash flows.
Discount rate: The discount rate indicates the yield that market participants expect to receive and is used to discount the projected future cash flows. Higher yield expectations or discount rates lead to lower prices and lower discount rates lead to higher prices for CLOs.
· Hedge Funds and Private Equity Funds are valued per reports provided by the funds on a periodic basis, and if traded, per their closing bid market prices on quoted exchanges, or as quoted by market maker.
· Private Equities and unlisted investments are valued using market valuation techniques as determined by the Directors, mainly on the basis of discounted cash flow techniques or valuations reported by third-party managers of such investments.
· Derivative instruments are valued at fair value as provided by counter parties of the derivative agreement.
· The investment in associate is valued based on its underlying credit agreement. The credit agreement's fair value is provided by counter party bank.
Financial assets and financial liabilities measured at fair value in the consolidated statement of financial position are grouped into the fair value hierarchy as follows:
30 June 2015
|
Unaudited
US $000
|
Unaudited
US $000
|
Unaudited
US $000
|
UnauditedUS $000
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Assets
|
|
|
|
|
Fixed income investments
|
1,648
|
73,914
|
-
|
75,562
|
Private equities
|
-
|
-
|
6,517
|
6,517
|
Financial and minority holdings
|
-
|
-
|
9,266
|
9,266
|
Public equity investments
|
3,236
|
-
|
-
|
3,236
|
Hedge funds
|
-
|
1,134
|
-
|
1,134
|
Real estate entities
|
-
|
-
|
1,189
|
1,189
|
Forward contract
|
-
|
192
|
-
|
192
|
|
------
|
------
|
------
|
------
|
|
4,884
|
75,240
|
16,972
|
97,096
|
|
------
|
------
|
------
|
------
|
30 June 2014
|
Unaudited
US $000
|
Unaudited
US $000
|
Unaudited
US $000
|
UnauditedUS $000
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Assets
|
|
|
|
|
Fixed income investments
|
1,645
|
91,962
|
-
|
93,607
|
Private equities
|
-
|
-
|
9,683
|
9,683
|
Financial and minority holdings
|
-
|
-
|
9,068
|
9,068
|
Public equity investments
|
5,804
|
-
|
-
|
5,804
|
Hedge funds
|
-
|
1,256
|
-
|
1,256
|
Real estate entities
|
-
|
-
|
1,553
|
1,553
|
Other investments
|
298
|
-
|
2
|
300
|
|
------
|
------
|
------
|
------
|
|
7,747
|
93,218
|
20,306
|
121,271
|
|
------
|
------
|
------
|
------
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Interest rate swaps
|
-
|
378
|
-
|
378
|
|
------
|
------
|
------
|
------
|
|
-
|
378
|
-
|
378
|
|
------
|
------
|
------
|
------
|
31 December 2014
|
Audited
US $000
|
Audited
US $000
|
Audited
US $000
|
Audited
US $000
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Assets
|
|
|
|
|
Fixed income investments
|
1,623
|
82,217
|
-
|
83,840
|
Private equities
|
-
|
-
|
8,221
|
8,221
|
Financial and minority holdings
|
-
|
-
|
9,266
|
9,266
|
Public equity investments
|
3,208
|
-
|
-
|
3,208
|
Hedge funds
|
-
|
1,135
|
-
|
1,135
|
Real estate entities
|
-
|
-
|
1,476
|
1,476
|
Other investments
|
299
|
-
|
-
|
299
|
Total return swaps
|
-
|
-
|
1,125
|
1,125
|
|
------
|
------
|
------
|
------
|
|
5,130
|
83,352
|
20,088
|
108,570
|
|
------
|
------
|
------
|
------
|
The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting period.
No financial assets or liabilities have been transferred between levels.
Financial assets within level 3 can be reconciled from beginning to ending balances as follows:
|
|
Available-for-sale
|
At fair value through profit or loss
|
Derivative financial instruments
|
|
|
Financial and minority holdings
|
Private equities
|
Other investments
|
Real estate
|
Private equities
|
Total return swap
|
Total
|
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
As at 1 January 2015
|
9,266
|
7,891
|
-
|
1,476
|
330
|
1,125
|
20,088
|
Purchases
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Settlement
|
-
|
-
|
-
|
-
|
-
|
(1,332)
|
(1,332)
|
Losses recognised in:
|
|
|
|
|
|
|
|
-Profit or loss
|
-
|
(890)
|
-
|
-
|
-
|
207
|
(683)
|
-Other comprehensive income
|
-
|
(814)
|
-
|
-
|
-
|
-
|
(814)
|
Exchange difference
|
-
|
-
|
-
|
(287)
|
-
|
-
|
(287)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
As at 30 June 2015
|
9,266
|
6,187
|
-
|
1,189
|
330
|
-
|
16,972
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
At fair value through profit or loss
|
Derivative financial instruments
|
|
|
Financial and minority holdings
|
Private equities
|
Other investments
|
Real estate
|
Private equities
|
Total return swap
|
Total
|
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
As at 1 January 2014
|
9,068
|
9,081
|
2
|
1,588
|
569
|
-
|
20,308
|
Purchases
|
-
|
132
|
-
|
-
|
-
|
-
|
132
|
(Losses) / gains recognised in:
|
|
|
|
|
|
|
|
-Profit or loss
|
-
|
(217)
|
-
|
-
|
-
|
-
|
(217)
|
-Other comprehensive income
|
-
|
118
|
-
|
-
|
-
|
-
|
118
|
Exchange difference
|
-
|
-
|
-
|
(35)
|
-
|
-
|
(35)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
As at 30 June 2014
|
9,068
|
9,114
|
2
|
1,553
|
569
|
-
|
20,306
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
At fair value through profit or loss
|
Derivative financial instruments
|
|
|
Financial and minority holdings
|
Private equities
|
Other investments
|
Real estate
|
Private equities
|
Total return swap
|
Total
|
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
As at 1 January 2014
|
9,068
|
9,081
|
2
|
1,588
|
569
|
-
|
20,308
|
Purchases
|
-
|
323
|
-
|
-
|
-
|
-
|
323
|
(Losses) / gains recognised in:
|
|
|
|
|
|
|
|
-Profit or loss
|
-
|
(1,470)
|
-
|
68
|
(239)
|
1,125
|
(516)
|
-Other comprehensive income
|
198
|
(43)
|
(2)
|
-
|
-
|
-
|
153
|
Exchange difference
|
-
|
-
|
-
|
(180)
|
-
|
-
|
(180)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
As at 31 December 2014
|
9,266
|
7,891
|
-
|
1,476
|
330
|
1,125
|
20,088
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
|
|
|
|
|
|
|
|
The above recognised (losses) / gains can be allocated as follows:
|
|
Available-for-sale
|
At fair value through profit or loss
|
Derivative financial instruments
|
|
|
Financial and minority holdings
|
Private equities
|
Other investments
|
Real estate
|
Private equities
|
Total return swap
|
Total
|
Six month ended 30 June 2015
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
Profit or loss
|
|
|
|
|
|
|
|
-Financial assets held at period-end
|
-
|
(890)
|
-
|
-
|
-
|
207
|
(683)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
-
|
(890)
|
-
|
-
|
-
|
207
|
(683)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Other comprehensive income
|
|
|
|
|
|
|
|
-Financial assets held at period-end
|
-
|
(814)
|
-
|
-
|
-
|
-
|
(814)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
-
|
(814)
|
-
|
-
|
-
|
-
|
(814)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Net (losses) / gains for period
|
-
|
(1,704)
|
-
|
-
|
-
|
207
|
(1,497)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
At fair value through profit or loss
|
Derivative financial instruments
|
|
|
Financial and minority holdings
|
Private equities
|
Other investments
|
Real estate
|
Private equities
|
Total return swap
|
Total
|
Six month ended 30 June 2014
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
US $000
|
Profit or loss
|
|
|
|
|
|
|
|
-Financial assets held at period-end
|
-
|
(217)
|
-
|
-
|
-
|
-
|
(217)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
-
|
(217)
|
-
|
-
|
-
|
-
|
(217)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Other comprehensive income
|
|
|
|
|
|
|
|
-Financial assets held at period-end
|
-
|
118
|
-
|
-
|
-
|
-
|
118
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
|
-
|
118
|
-
|
-
|
-
|
-
|
118
|
|
------
|
------
|
------
|
------
|
------
|
------
|
------
|
Net losses for period
|
-
|
(99)
|
-
|
-
|
-
|
-
|
(99)
|
|
------
|
------
|
------
|
------
|
------
|
------
|
| | |