Lindsell Train Inv. LTI Half Yearly Report

  Lindsell Train Inv. (LTI) - Half Yearly Report

RNS Number : 1514S
Lindsell Train Investment Trust PLC
28 November 2012




                   THE LINDSELL TRAIN INVESTMENT TRUST PLC

                                      

               Report for the Half Year ended 30 September 2012



                         Highlights for the Half Year



Performance comparisons 1 April 2012 - 30 September 2012
Mid-market share price per Ordinary Share ^#      +28.4%
Net asset value per Ordinary Shareˆ                +7.8%
Benchmark *                                        +1.9%
MSCI World Index (Sterling)                        +0.6%
UK RPI Inflation (all items)                       +1.4%



^# Calculated on a total return basis
*  The index of the annual average yield on the UK 2.5% Consolidated Loan
   Stock between the relevant dates
ˆ  The net asset value at 30 September 2012 has been adjusted to include the
   dividend of £4.15 per Ordinary Share paid on 3 August 2012.

 (Source: Bloomberg / Phoenix Administration Services Limited)





                           Objective of the Company



The objective of the Company is to maximise long-term total returns with a
minimum objective to maintain the real purchasing power of Sterling capital as
measured by the annual average yield on the UK 2.5% Consolidated Loan Stock.







                              Investment Policy



The Investment Policy of the Company is to invest:



• in a wide range of financial assets including equities, unquoted  equities, 
bonds,  funds,  cash  and  other   financial  investments  globally  with   no 
limitations on  the markets  and  sectors in  which  investment may  be  made, 
although there  may  be a  bias  towards  Sterling assets  consistent  with  a 
Sterling-denominated investment  objective.  The Directors  expect  that  the 
flexibility implicit in  these powers will  assist in the  achievement of  the 
absolute returns that the investment objective requires;



• in Lindsell Train managed fund  products, subject to Board approval, up  to 
25% of its gross assets;



• to retain a holding, currently 24.4%, in Lindsell Train Limited in order to
benefit from the growth of the business of the Company's Investment Manager.



Diversification

The Company expects to invest in  a concentrated portfolio of securities  with 
the number of  equity investments  averaging fifteen  companies. The  Company 
will not make investments for the purpose of exercising control or  management 
and will not  invest in securities  of or lend  to any one  company (or  other 
members of its group) more than 15%  by value of its assets (before  deducting 
borrowings). The Company  will not invest  more than 15%  of gross assets  in 
other closed-ended investment funds.



Gearing

The Directors' policy is to permit borrowings up to 50% of the net asset value
of the Company in order to enhance  returns where and to the extent that  this 
is considered appropriate.



Dividends

The Directors' policy is to pay annual dividends consistent with retaining the
maximum permitted earnings in accordance with investment trust regulations.





Chairman's Statement



The first six months of the Company's financial year continued as last  year's 
ended, with the Company's net asset  value rising more than the benchmark  and 
world equity  markets. The  NAV was  up 7.8%,  the benchmark  1.9% and  world 
markets measured by the MSCI World index in Sterling up 0.6%. What has changed
more is the  share price.  It was up  28.4% and  at the end  of September  was 
trading at a premium to NAV of 21%. The Manager wrote about the premium in its
September monthly update. The Board would  like to support and reiterate  some 
of the comments, and in particular  would caution new investors buying  shares 
at a heightened premium to NAV. In time the premium may contract and there  is 
a risk that the  shares will trade  at a discount in  the future. Should  that 
occur at a time when markets are weak and the NAV is falling the loss of value
for investors buying  at a significant  premium could be  material. Also,  it 
would be wrong for existing investors  to celebrate a high price that  results 
from a large premium.  The Manager's annual  management and performance  fees 
are calculated  on the  market  capitalisation of  the  Company not  the  NAV. 
Calculating the fee  on the market  capitalisation was designed  to align  the 
Manager's interests with shareholders, recognising that investment trusts have
generally traded  at discounts.  This works  to shareholders'  advantage  when 
discounts exist but that advantage is reversed when a premium prevails.



Aside from communicating our concern and reiterating that the price the  Board 
ascribes to  its  holding in  Lindsell  Train  Limited is  realistic  and  not 
undervalued (as some shareholders have  suggested), there is little the  Board 
can do  to  help resolve  the  situation other  than  issuing new  shares.  In 
previous statements, I have commented that the strong growth in LTL's business
is much to be welcomed as is the greater strength and depth which the business
is developing, but  LTL remains  significantly dependent on  its two  original 
founders and on continued good investment performance. The Board is currently
reluctant to issue more shares as  we believe this would dilute  shareholders' 
interest in LTL,  hitherto the  most important  and value  creating asset  the 
Company owns.



A frustration for shareholders  is the widening spread  between offer and  bid 
prices quoted on the London Stock Exchange on a daily basis. As I write it  is 
12% but it has been even higher in recent times. In a sense this a product  of 
the Company's success. We  have a loyal base  of long-term shareholders.  With 
few sellers, the daily trade in the Company's shares is small. The low  volume 
and the custom to make a market in at least 100 shares makes it difficult  for 
the market maker in  the Company's shares, J.P.Morgan  Cazenove, to cover  its 
costs, especially  in  a market  dominated  by buyers,  without  widening  the 
spread. We would suggest that investors  wishing to transact set a firm  price 
to deal in  the shares within  the spread,  even if it  cannot be  immediately 
fulfilled.  In  our  experience,  sellers   or  buyers  will  in  due   course 
materialise, allowing the transaction to take place.



In an  important  development,  the  independent  Directors  sold  15  of  the 
Company's 666 shares  in Lindsell Train  Limited for cash  to Jane Orr,  LTL's 
marketing  director.  She  has  been  with  LTL  since  2007  and  has   been 
instrumental  in  initiating   and  consolidating   customer  and   consultant 
relationships, and providing a platform  for growth in funds under  management 
since her tenure began.  We want key  employees to share  in the ownership  of 
LTL, not  least  because  it  encourages their  retention.  This  follows  the 
precedent of Michael Lim, LTL's chief  operating officer, who became an  owner 
of LTL in 2003 having  joined the company at  its start. Michael Lindsell  and 
Nick Train sold some  of their LTL shares  to him through option  arrangements 
and he now owns c.2%.  They will also sell 10  shares to Jane through  options 
struck at the same  time and exercise  price as the  Company's direct sale  of 
shares. The important principle  that Michael, Nick and  the Company, as  the 
original shareholders of LTL, have agreed is that if in future we sell  shares 
to other LTL executives our resultant  ownership will be proportionate to  the 
original holdings, 37.5%,  37.5% and 25%  respectively. This is  why more  of 
Jane's were ceded by the Company. After future sales, though none are  planned 
currently, we expect full proportionality to  be established. In this way  the 
three original shareholders of LTL will bear a responsibility proportionate to
their original holding in  ceding ownership in order  to foster the growth  of 
LTL in the future.  All the share transactions  took place at the  prevailing 
valuation of LTL as  determined by the Directors'  price formula and  measures 
have been taken  to ensure  that shares  sold to  executives by  LTIT will  be 
reclaimed in the event of the buyer leaving the employment of LTL.



We view this as a positive development for all parties including the  Company. 
It has always been keen  to support and encourage the  growth of LTL and  with 
this sale, and any others in the future, we hope to align those interests with
those of the key personnel in LTL in  such a way as to provide the  foundation 
to grow more value for all LTL shareholders than would otherwise be the case.



The only dealing activity  this half year  was an addition  to the holding  of 
Nintendo. The  Manager  expects a  revival  in Nintendo's  business  once  the 
installed base of  users of  its new hardware  products rises  in response  to 
sales of its well-known software franchises and is adding to the position at a
low point in sales and at historically low valuations.



Long-term shareholders  know that  following the  2008 financial  crisis,  the 
Board has monitored closely the  risk to the Company  from the custody of  its 
assets with its prime brokerage and custodian, Morgan Stanley. Since 2008  the 
Company has endeavoured  to ensure  that its  assets are  segregated from  the 
custodian's assets.  In doing  so, in  the unlikely  event of  bankruptcy  the 
assets would  be ring-fenced  and not  ranked  as a  general creditor  of  the 
custodian. Maintaining this security has  proven more expensive and  difficult 
than we thought  and in light  of the  continuing risks the  Board decided  to 
terminate the agreement with Morgan Stanley and establish a more  conventional 
custody agreement with  Northern Trust. In  addition, the Board  has agreed  a 
borrowing facility with Northern Trust giving the Company access to  borrowing 
of up  to c.10%  of NAV.  Gross borrowings  under the  facility are  currently 
£968,000.



Notwithstanding the precarious economic environment, the Company's investments
have in aggregate continued to progress and in some cases prosper. On balance,
we think this  can continue even  if the market  periodically takes fright  as 
occurred in mid-year.  These lurches down  often coincide with  bouts of  good 
performance from our remaining gilt  positions. We still await an  opportunity 
to switch these residual holdings into equities.



D Adamson

Chairman

27 November 2012




Investment Manager's Report



Conventional wisdom has it that corporate acquisitions are more often than not
damaging to  the acquiring  company  - that  acquirers typically  overpay  and 
underestimate the  challenges of  consolidating the  acquired businesses.  We 
have doubts about  this conventional  wisdom, not least  because the  critical 
question - what would have happened to the acquiring company if it hadn't done
a deal -  can never be  answered. Whatever  the truth of  the matter  though, 
there is no doubt that hope springs eternal and companies and their  investors 
welcome the promise and perhaps simply the excitement of deal-making.



I make these comments because three  of our portfolio holdings are engaged  in 
or have recently closed major strategic transactions. In fact all of them are
beverage companies - Barr, Diageo and Heineken. Combined, these three account
for 27% of your  portfolio - so  we better hope  that the conventional  wisdom 
about deals  is  wrong. And,  in  truth,  we find  ourselves  applauding  the 
acquirers - despite  some high prices  being paid. Barr  is seeking to  merge 
with its peer Britvic in the UK, looking to realise consolidation cost savings
and improve  distribution.  Diageo and  Heineken  have purchased  brands  and 
assets in Emerging Markets. In all three cases the shares have responded well
to the corporate activity, with both Diageo and Heineken up a quarter or  more 
in calendar  2012, as  investors welcome  the increased  exposure to  Emerging 
Market consumers and Barr up a still very useful 15%.



Perhaps our  euphoria and  that of  other  investors, will  wear off  and  the 
premium price  that Heineken,  in particular,  has paid  to win  Asia  Pacific 
Breweries (APB) will come back and bite its ambitious board and shareholders.
But, on balance, we think the lesson  is that companies are right to take  the 
risk, because strategic opportunities of this importance come up so rarely and
need to be grasped  with both hands. We  know that Barr has  aspired to do  a 
deal with  Britvic for  years and  that  Diageo, too,  had talks  with  United 
Spirits in India back in  2008. It just happens that  2012 is the time  those 
aspirations became actionable. As so often, Shakespeare has it right:



"There is a tide in the affairs of men, which taken at the flood, leads on  to 
fortune..."



A tough  tide for  the global  economy  means that  strong companies  can  get 
transactions done, transactions that would simply not be available in  happier 
times.



So, some  commentators chide  Heineken for  the premium  it paid  for ABP  (in 
which, to be fair, Heineken already held a  40% stake), but not as much as  we 
would have done if Heineken had blinked and let this wonderful asset pass into
the hands of a rival.



On this  topic,  but from  a  different perspective,  even  we, as  long  term 
supporters, wonder if  Nintendo might  not have  been sensible  to have  taken 
advantage of its  cash-rich balance sheet  to acquire one  or more  distressed 
Japanese content creators during this hiatus for the video game industry.  We 
admire  Nintendo's  single-minded  focus  on   its  own  business  model   and 
intellectual property and perhaps the company is right not to compromise these
principles. However,  its  unwillingness  to  improve  profitability  through 
industry consolidation or to  be seen to be  taking advantage of  competitors' 
weakness is very  Japanese. The  Anglo-Saxon model, though  more brutal,  has 
tended to keep the corporate sector more profitable and vibrant.



As concluding comments  for this  interim report, we  reiterate our  happiness 
with the  current industry/thematic  mix  of our  equity assets.  Some  great 
consumer  brands,  with   reliable  cash   flows,  some   pricing  power   and 
opportunities for revenue growth in new geographies - Unilever still  pregnant 
with value, we think. And several media companies - Pearson, Reed, eBay  and, 
yes, Nintendo - well  positioned to exploit technology  change to bring  their 
entertainment, information and services to  more and more consumers with  ever 
greater utility.



N Train

Lindsell Train Limited - Investment Manager

27 November 2012



Income Statement

                  Six months ended       Six months ended          Year ended
                  30 September 2012      30 September 2011       31 March 2012
                      Unaudited              Unaudited              Audited
               Revenue Capital   Total Revenue Capital Total Revenue Capital  Total
                 £'000   £'000   £'000   £'000   £'000 £'000   £'000   £'000  £'000
Gains/(losses)
on investments       -   4,084   4,084       -    (46)  (46)       -   3,546  3,546
Exchange gains
on currency
balances             -      35      35       -     145   145       -      97     97
(Losses)/gains
on forward
currency
contracts            -    (47)    (47)       -      94    94       -       -      -
Gains/(losses)
on futures
contracts            -     190     190       -      46    46       -   (188)  (188)
Income (note
5)                 987       -     987     752       -   752   1,535       -  1,535
Investment
management
fees (note 6)    (144) (1,350) (1,494)   (123)       - (123)   (245)   (127)  (372)
Other expenses
(note 7)         (140)    (13) (153)    (131)     (1) (132)   (229)    (15)  (244)
Net return
before finance
costs and tax      703   2,899   3,602     498     238   736   1,061   3,313  4,374
Interest
payable and
similar
charges            (5)       -     (5)     (3)       -   (3)     (5)       -    (5)
Return on
ordinary
activities
before tax         698   2,899   3,597     495     238   733   1,056   3,313  4,369
Tax on
ordinary
activities        (11)       -    (11)    (15)       -  (15)     (9)       -    (9)
Return on
ordinary
activities
after tax for
the period         687   2,899   3,586     480     238   718   1,047   3,313  4,360
Return per
Ordinary Share   £3.43  £14.50  £17.93   £2.40   £1.19 £3.59   £5.23  £16.57 £21.80



All revenue and capital items in the above statement derive from continuing
operations.
The total columns of this statement represent the profit and loss accounts  of 
the Company. The revenue and capital columns are supplementary to this and are
prepared under  the  guidance  published  by  the  Association  of  Investment 
Companies.



A statement of Total Recognised Gains and Losses is not required as all  gains 
and losses of the Company have been reflected in the above statement.



No operations were acquired or discontinued during the period.



Reconciliation of Movements in Shareholders' Funds
                                  Share Special Capital Revenue reserve      

                                capital reserve reserve           £'000  Total

                                  £'000   £'000   £'000                  £'000
For the six months ended 30
September 2012
At 31 March 2012                    150  19,850  24,239           1,974 46,213
Return on ordinary activities
after tax for the financial
period                                -       -   2,899             687  3,586
Dividends paid                        -       -       -           (830)  (830)
At 30 September 2012                150  19,850  27,138           1,831 48,969
For the six months ended 30
September 2011
At 31 March 2011                    150  19,850  20,926           1,657 42,583
Return on ordinary activities
after tax for the financial
period                                -       -     238             480    718
Dividends paid                        -       -       -           (730)  (730)
At 30 September 2011                150  19,850  21,164           1,407 42,571
For the year ended 31 March
2012
At 31 March 2011                    150  19,850  20,926           1,657 42,583
Return on ordinary activities
after tax for the financial
period                                -       -   3,313           1,047  4,360
Dividends paid                        -       -       -           (730)  (730)
At 31 March 2012                    150  19,850  24,239           1,974 46,213





        Balance Sheet

                                            30 September 30 September 31 March
                                                    2012         2011     2012
                                               Unaudited    Unaudited  Audited
                                                   £'000        £'000    £'000
Fixed assets
Investments held at fair value through
profit or loss                                    50,484       42,451   46,311
Current assets
Forward currency contracts held at fair
value through profit or loss                       3,900        4,026    3,940
Debtors                                              368          196      723
Cash at bank                                         509          392      239
                                                   4,777        4,614    4,902
Current liabilities
Forward currency contracts held at fair
value through profit or loss                     (3,881)      (3,904)  (4,021)
Futures held at fair value through profit
or loss                                             (27)         (15)     (92)
Bank overdraft                                     (986)        (538)    (706)
Other payables                                   (1,398)         (37)    (181)
Net current (liabilities)/assets                 (1,515)          120     (98)
Net assets                                        48,969       42,571   46,213
Capital and reserves
Called up share capital                              150          150      150
Special reserve                                  19,850       19,850   19,850
                                                  20,000       20,000   20,000
Capital reserve                                   27,138       21,164   24,239
Revenue reserve                                    1,831        1,407    1,974
Equity shareholders' funds                        48,969       42,571   46,213
Net asset value per Ordinary Share               £244.85      £212.86  £231.06





Cash Flow Statement

                                  Six months ended Six months ended Year ended
                                      30 September     30 September   31 March
                                              2012             2011       2012
                                         Unaudited        Unaudited    Audited
                                             £'000            £'000      £'000
Net cash inflow from operating
activities                                     556               26        522
Servicing of finance                           (4)              (3)        (5)
Taxation                                      (12)             (19)       (11)
Financial investment                           245            (320)    (1,095)
Net cash inflow/(outflow) before
financing                                      785            (316)      (589)
Equity dividends paid                        (830)            (730)      (730)
Decrease in cash in the period                (45)          (1,046)    (1,319)
Reconciliation of net cash flow
to movement in net debt
Decrease in cash in the period                (45)          (1,046)    (1,319)
Exchange movements                              35              145         97
Opening net funds                            (467)              755        755
Closing net debt                             (477)            (146)      (467)
Represented by
Cash at bank                                   509              392        239
Overdrafts                                   (986)            (538)      (706)
                                             (477)            (146)      (467)
Reconciliation of operating
profit to net cash inflow from
operating activities
Net return before finance costs
and taxation                                 3,602              736      4,374
(Gains)/losses on investments
held at fair value                         (4,084)               46    (3,546)
Movements in derivative contracts
held                                          (65)              (9)         68
Gains on exchange movements                   (35)            (145)       (97)
Decrease/(increase) in other
debtors                                         50            (122)       (46)
Decrease in accrued income                      12               19          7
Increase/(decrease) in creditors             1,076            (499)      (238)
Net cash inflow from operating
activities                                     556               26        522



 Notes to the accounts

1. The financial information for the year ended 31 March 2012 included in this
half-year report has been based upon the Company's full accounts for the  year 
to 31  March 2012,  which carried  an  unqualified audit  report and  did  not 
include statements under Sections 498(2) or 498(3) of the Companies Act  2006. 
Those accounts have been filed with the Registrar of Companies.



2. The Financial Statements  for the six months  ended 30 September 2012  have 
been prepared on a  basis consistent with the  accounting policies adopted  by 
the Company in its statutory accounts for the year ended 31 March 2012.



3. The Income Statement for the six months ended 30 September 2012, six months
ended 30 September 2011  and year ended  31 March 2012  have been prepared  in 
accordance with the Statement of Recommended Practice "Financial Statements of
Investment Trust Companies" issued by The Association of Investment  Companies 
in January 2009, which has been adopted by the Company.



4. The Income Statement includes the results of the Company and together  with 
the Reconciliation of Movements in Shareholders' Funds, Balance Sheet and Cash
Flow Statement at 30 September 2012  are unaudited and do not constitute  full 
statutory accounts within  the meaning  of Section  435 of  the Companies  Act 
2006.



5. Income
                                 Six months ended  Six months ended Year ended

                                     30 September 30 September 2011   31 March

                                             2012                         2012
                                        Unaudited         Unaudited    Audited
                                            £'000             £'000      £'000
Overseas dividends                             88               109        164
Overseas stock dividends                       29                 -         38
UK dividends                                  786               559      1,165
UK fixed interest                              84                84        168
                                              987               752      1,535
6. Investment management fees
                                 Six months ended  Six months ended Year ended

                                     30 September 30 September 2011   31 March

                                             2012                         2012
                                        Unaudited         Unaudited    Audited
                                            £'000             £'000      £'000
Investment management fee                     168               151        303
Manager's performance fee
provision                                   1,350                 -        127
Rebate of investment management
fee                                          (24)              (28)       (58)
                                            1,494               123        372
7. Other expenses
                                 Six months ended  Six months ended Year ended

                                     30 September 30 September 2011   31 March

                                            20112                         2012
                                        Unaudited         Unaudited    Audited
                                            £'000             £'000      £'000
Administration fee                             35                35         70
Directors' fees                                39                28         67
Auditor's remuneration for:
- audit of the financial
statements of the Company                      11                11         22
- other services relating to
taxation                                        1                 -          6
Legal and professional fees                    13                 4          9
Provision for VAT written off                  17                19          -
Other*                                         24                34         55
                                              140               131        229
Capital charges                                13                 1         15
                                              153               132        244
* Includes registrar's fees, printing fees, London Stock Exchange/ FSA fees
and Directors' & Officers' liability insurance



8. Effective rate of tax



The effective  rate of  tax reported  in the  revenue column  of the  income 
statement for the six months ended 30 September 2012 is 1.58% (year ended 31
March 2012: 0.85% and  six months ended 30  September 2011: 3.03%) based  on 
revenue return before tax of £698,000 (year ended 31 March 2012:  £1,056,000 
and six months ended  30 September 2011: £495,000).  This differs from  the 
standard rate of tax, 24% (year ended 31 March 2012 and six months ended  30 
September 2011: 26%) as a result  of income not taxable for Corporation  Tax 
purposes.



9. Net asset value per Ordinary Share



                              Six months ended                            

                                  30 September  Six months ended  Year ended

                                          2012 30 September 2011    31 March

                                                                        2012
                                     Unaudited         Unaudited     Audited
Net assets attributable            £48,969,000       £42,571,000 £46,213,000
Ordinary Shares in issue at            200,000           200,000     200,000
the period end
Net asset value per Ordinary           £244.85           £212.86     £231.06
Share





10. Return per Ordinary Share



                               Six months ended                           

                                   30 September  Six months ended Year ended

                                           2012 30 September 2011   31 March

                                                                        2012
                                      Unaudited         Unaudited    Audited
Total return per Ordinary
Share
Total return                         £3,586,000          £718,000 £4,360,000
Weighted average number of
Ordinary Shares in issue
during the period                       200,000           200,000    200,000
Total return per Ordinary                £17.93             £3.59     £21.80
Share

                                                                            

The total return per Ordinary Share detailed above can be further analysed
between revenue and capital, as below:



Revenue return per Ordinary Share
Revenue return                                  £687,000 £480,000 £1,047,000
Weighted average number of Ordinary Shares in
issue during the period                          200,000  200,000    200,000
Revenue return per Ordinary Share                  £3.43    £2.40      £5.23
Capital return per Ordinary Share
Capital return                                £2,899,000 £238,000 £3,313,000
Weighted average number of Ordinary Shares in
issue during the period                          200,000  200,000    200,000
Capital return per Ordinary Share                 £14.50    £1.19     £16.57





11. The investment in  Lindsell Train Limited  (LTL), representing 24.4%  of 
the Investment Manager, is held as  part of the investment portfolio and  is 
accounted for and  disclosed in  the same way  as other  investments in  the 
portfolio. The  Directors  of the  Company  review  the fair  value  of  the 
investment in LTL at the end of each quarter using the simple average of:



(a)  1.5%  of  LTL's  most  recent  funds  under  management  ignoring   any 
differences between types of asset class and fee structure; and



(b) LTL's net  earnings (adjusted  for a  notional increase  in total  staff 
costs at 45% of revenues excluding performance fees*) divided by the  annual 
average yield on 2.5% Consolidated Loan Stock plus an equity risk premium of
4.5%.



The Board  reserves the  right  to vary  the  valuation methodology  at  its 
discretion.



* The Board judged it necessary to adjust for the comparatively low level of
staff costs, a function of the salary and bonus cap agreed between LTL and
LTIT at inception.



12. It is  the intention  of the  Directors to  conduct the  affairs of  the 
Company so that  the Company  satisfies the  conditions for  approval as  an 
Investment Trust Company set  out in Sections  1158/1159 of the  Corporation 
Tax Act 2010.


Interim Management Report



The Directors  are  required  to  provide  an  Interim  Management  Report  in 
accordance with the UK Listing Authority's Disclosure and Transparency Rules.
They consider that the Chairman's Statement, the Investment Manager's  Report, 
the  statement  below  on  related  party  transactions  and  the   Directors' 
Responsibility Statement  below  together constitute  the  Interim  Management 
Report for the Company for the six months ended 30 September 2012.



The  Directors  confirm  that,  except  as  stated  above,  no  related  party 
transactions were undertaken  by the Company  in the first  six months of  the 
current financial year, and  there have been no  changes to the related  party 
disclosures set out in the Annual Report of the Company for the year ended  31 
March 2012.



The Half Year  Report has not  been reviewed by  the Company's auditor,  Grant 
Thornton UK LLP.





Directors' Responsibility Statement



The non-executive Directors of the Company (Mr Donald Adamson (Chairman), Mr
Dominic Caldecott, Mr Rory Landman, Mr Michael Lindsell and Mr Michael
Mackenzie) confirm that to the best of their knowledge:



(a) the condensed set of Financial Statements, which has been prepared in
    accordance with the Accounting Standards Board's pronouncements on interim
    reporting, give a true and fair view of the assets, liabilities, financial
    position and profit of the Company;
(b) the Interim Management Report includes a fair review, as required by
    Disclosure and Transparency Rule 4.2.7 R, of the important events that
    have occurred during the first six months of the financial year, their
    impact on the condensed set of Financial Statements and a description of
    the principal risks and uncertainties for the remaining six months of the
    financial year; and
(c) the Interim Management Report includes a fair review of the information
    concerning related party transactions as required by DTR 4.2.8 R.



The Half Year Report  was approved by  the Board of Directors  on the date  of 
this announcement, and the Responsibility Statement signed on its behalf by Mr
Donald Adamson, Chairman.



By order of the Board

Phoenix Administration Services Limited

Secretary

27 November 2012







Copies of the Half Year Report will be sent to shareholders shortly and may be
obtained from the Company's Registered Office: Springfield Lodge, Colchester
Road,  Chelmsford,   Essex  CM2   5PW.  (T)   +44  (0)1245   398950   (E) 
pfsinfo@phoenixfundservices.com



A soft copy (PDF) of the Half Year Report can be found by following the  links 
on the below website*:



http://www.lindselltrain.com/p/fLTIT1.htm



* Except for the above announcement the content of the Company's web-pages and
the content of any websites which may  give access to, or be accessed  through 
hyperlinks on, the Company's web-pages are not incorporated into or form  part 
of this announcement.





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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