Bellevue Healthcare Trust plc
LEGAL ENTITY IDENTIFIER ('LEI'):
213800HQ3J3H9YF2UI82
Half-yearly report
for
the six months ended 31 May 2024
INVESTMENT OBJECTIVE
The investment objective of the
Company is to provide Shareholders with capital growth and income
over the long term, through investment in listed or quoted global
healthcare companies. The Company's specific return objectives are:
(i) to beat the total return of the MSCI World Healthcare Index
("Index") (in sterling) on a rolling 3 year period (the index total
return including dividends reinvested on a net basis); and (ii) to
seek to generate a double-digit total shareholder return per annum
over a rolling 3 year period.
FINANCIAL INFORMATION
|
As at
|
As
at
|
|
31 May 2024
|
30
November 2023
|
Net asset value ("NAV") per Ordinary
Share (cum income)
|
149.95p
|
143.87p
|
Ordinary Share price
|
141.60p
|
129.00p
|
Ordinary Share price discount to
NAV1
|
5.6%
|
10.3%
|
Ongoing charges ratio
("OCR")1
|
1.03%
|
1.02%
|
PERFORMANCE SUMMARY
|
%
change2,3
|
%
change2,3
|
For
the six months ended 31 May
|
2024
|
2023
|
Share price total return per
Ordinary Share1
|
12.1%
|
-4.9%
|
NAV total return per Ordinary
Share1
|
6.3%
|
-4.9%
|
MSCI World Healthcare Index total
return (GBP)
|
9.7%
|
-6.9%
|
1 These are Alternative Performance Measures.
2 Total returns in sterling for the six months period, including
dividends reinvested.
3 Source: Bloomberg.
ALTERNATIVE PERFORMANCE MEASURES ('APMS')
The financial information and
performance summary data highlighted in the above footnote are
considered to represent APMs of the Company. Definitions of these
APMs together with how these measures have been calculated can be
found in the half yearly report.
Chairman's Statement
Dear Shareholders
On behalf of the Board, I am pleased
to provide to you the Company's half-yearly report for the six
months ended 31 May 2024. The Covid pandemic is now in the
rear-view mirror; the war in Ukraine continues; inflation appears
to be abating but there is debate on whether interest rates will
come down rapidly or stay higher for longer. At the time of
writing, elections have completed in France and the UK and are
scheduled for later this year in the US.
PERFORMANCE REVIEW
The Company's specific objective is
to beat the benchmark and to deliver double digit annual returns
over a rolling three-year period. The table below shows the
performance over the last six months and over preceding
years.
(Fiscal year ends 30 Nov)
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024 HY
|
Share price total return
|
21.6%
|
6.9%
|
22.5%
|
11.4%
|
(11.9%)
|
(15.1%)
|
12.1%
|
NAV total return
|
24.0%
|
6.6%
|
24.6%
|
10.3%
|
(4.1%)
|
(12.7%)
|
6.3%
|
MSCI World Healthcare Index total
return
|
18.0%
|
8.1%
|
10.3%
|
15.8%
|
14.1%
|
(7.1%)
|
9.7%
|
Though it is pleasing to see some
positive performance in recent months, both the Investment Manager
and the Board are aware that there is significant ground to be made
up to reach the performance of the benchmark (MSCI World Healthcare
Index on a total return basis in GBP). Hence it is clear that we
must redouble our efforts to perform. The Investment Manager has
reviewed their process and the Board is satisfied that the
management team is well resourced and supported to achieve its
investment goals.
DIVIDENDS
In line with Company policy, for the
financial year ending 30 November 2024, we will be paying two
dividends (interim and final) of 2.52p each in August /September
2024 and March / April 2025, again funded from our distributable
reserves.
GEARING
As of 31 May 2024, the Company's net
gearing was negative as the Company's net assets are higher than
total assets less cash and cash equivalents.
DISCOUNT AND SHARE BUYBACKS
During the six months to 31 May
2024, our shares have traded at an average of 8.33% discount to net
asset value ('NAV'). We paused the share buyback programme whilst
we attended the Chancery Court of the High Court at the end of
(calendar) 2023 for the purposes of adjusting our distributable
reserves to allow future redemptions and dividends.
We re-commenced our share buyback
programme earlier this year. The programme is managed at arm's
length by the Company's Broker using parameters set by the Board.
These parameters are regularly reviewed and revised as required;
the Board recognises the benefits of a robust 'discount management'
mechanism but is also mindful of the current discounts in the wider
investment trust market, trading volumes and regulatory
requirements.
We purchased 300,000 Ordinary Shares
in the six months to 31 May 2024 and we anticipate continuing the
discount management programme. Our current shareholder authority
(from the last AGM) permits the Board to repurchase a maximum of
69,342,023 Ordinary Shares.
REGULATION
Readers may, justifiably ask why the
investment trust sector trades, currently, at a discount. I would
be the first to acknowledge and accept that performance is the
paramount driver. However, there are also a number of other issues
including the general outflow from UK equities and specific
regulatory 'quirks'.
Wealth managers / IFAs (independent
financial advisors) have to include investment trust ongoing
charges in their overall fee calculations when reporting to clients
(so-called 'fee double-dipping'). There are also differences in how
investment trusts report costs in comparison to UCITS funds. And
though investment trusts benefit from the transparency of an
independent board and being listed on an exchange, purchasers face
stamp duty reserve tax.
There is substantial discussion from
commentators available online and significant industry lobbying on
these issues.
Time will tell how quickly, if at
all, regulations and the mood music will change.
ANNUAL REDEMPTION FACILITY
Last year we introduced a date of
record that was approximately two months ahead of the date required
for election for redemptions. Nevertheless, it took considerable
time and effort to ensure that we had clear identification of
shareholders for the purposes of satisfaction of the sanctions
regime.
Last year there were significant
redemptions. It is likely that this year again, shareholders will
utilise this facility. We will be publishing a detailed statement
dealing with the redemption process in due course. As per last year
I remind shareholders considering redemption that the Board will be
considering if a Redemption Pool is appropriate. Shareholders who
wish to investigate this further should refer to the Prospectus and
the Articles of the Company.
The Directors, in their review on
the Redemption requests, will act in the best interest of the
Company and shareholders as a whole.
This should have no practical impact
on our long-standing investors.
OUTLOOK
The elections I mention in my
opening remarks are likely to have some significant influence on
healthcare policy in three G7 countries. At the same time, higher
interest rates consume an increasing portion of government budgets,
and hence reduce fiscal flexibility. Within healthcare there are
many subsectors, each with its own demand drivers and
characteristics. The change in emphasis in each country is likely
to have varying effects on these subsectors.
(Separately, in the UK, some of the
regulatory issues regarding UK markets may be eventually
resolved).
Your Board remains fully supportive
of the approach to healthcare investing adopted by the Investment
Manager and considers that the portfolio is well positioned to
benefit in the long term.
Randeep Grewal
Chairman
24 July 2024
Investment Manager's Report
MACRO ENVIRONMENT
During our fiscal H1 2024, the MSCI
World Index delivered an impressive total return of +13.9% in
sterling terms (+14.9% in dollars). The first half of the year was
in many ways a continuation of FY2023; a very macro-led and narrow
market, dominated by a few key "meme-themes" (Technology and
particularly Artificial Intelligence being the predominant
ones)
During this period, AI Chip maker
NVIDIA delivered a dollar total return of 134% and accounted for
almost 20% of the MSCI World Index's total return. Hypothesised AI
mega-beneficiaries Microsoft, Meta and Alphabet accounted for a
further additional c.13% of the MSCI World Index's return between
them. In other words, one could say that around a third of the
total market return during this period was attributable to four
stocks around one theme.
Another way of illustrating this
concentration effect is to compare the total return of the
"Magnificent 7" to the "S&P 493" (i.e. the Index excluding the
so-called Magnificent 7) over the same period. The dollar return of
the former (+29.7%) is more than double the return of the latter
(+12.7%)
NVIDIA for sure saw tangible
upgrades in terms of revenues, profits and cashflows but the
benefits thus far feel much more nebulous for the other companies.
Indeed, some of the product rollouts can hardly be described as
successes. It was ever thus in technology; it takes longer than
expected for the real economic benefits to be visible.
The second notable macro
characteristic was continued volatility around interest rate
expectations that we feel has tended to overstate the level of
impact on the equities market and wider economic outlook, as
Illustrated by Figure 1 in the half yearly report, which shows the
actual yield on 30-year US Treasury bonds since the beginning of
FY2024; the summary of which is that long-term rate expectations
have barely changed over this period:
It is difficult to recall a similar
period when market leadership has been so narrow, both thematically
and in terms of individual stocks. Irrespective of sector and
style, the majority of active managers are going to struggle to
keep up with such a dynamic.
The MSCI World Healthcare Index
generated a sterling total return of +9.7% during our fiscal H1
2024 (+10.7% in dollars), again underperforming the parent MSCI
World index. However, as suggested previously, this difference
would largely ebb away if we adjusted for the outsized performance
of that small cadre of mega-cap technology stocks.
It is worth calling out the sector's
own "Magnificent 2": the GLP-1 obesity plays Novo Nordisk and Eli
Lilly. During the period in review, these generated dollar total
returns of 34% and 39% respectively and drove almost 40% of the
index total return. Without the outsize contribution from these two
names, the Index return would have been more like 7.6%, which is
still a healthy annualised return figure in any "normal" year
(whatever one of those is these days). While the Company does not
own either of these companies, it does have holdings exposed to the
GLP-1/obesity market opportunity which delivered comparable returns
during our period of ownership within fiscal H1 2024.
In many ways, a decent normalised
absolute performance should not be all that surprising. The
newsflow over the period generally reflected further continuing
stabilisation of behaviour amongst retirees in regard to the
utilisation of healthcare services from an elective standpoint, an
ongoing flow of new products in the drug and device spaces and a
generally benign regulatory environment. From an operational
standpoint, the healthcare sector has done exactly what one might
have expected.
The total return performance by
sub-sector is summarised in Figure 2 below and we would make the
following comments:
The Generics sector return was
almost entirely due to Teva (+72%), which rose strongly off recent
lows on the back of better profitability and easing litigation
concerns. The Facilities sector performed strongly on continued
improvements in procedure volume trends and cautious comments from
Managed Care companies (i.e. those paying the bills) that such
trends would likely persist through 2024.
The Diversified Therapeutics sector
includes Lilly and Novo and would have delivered a return closer to
4% if these two stocks had performed in line with their peers.
Despite being a clear beneficiary of AI deployment, with numerous
examples of successful utilisation of machine learning, the
Healthcare IT sector continues to struggle on the sentiment side.
Much of this sub-sector's negative performance can be attributed to
the Japanese software company M3 Inc., which fell >40% during
the period.
The primary driver of the negative
outcome in Diagnostics was portfolio holding Exact Sciences, which
cannot seem to shrug off concerns over competitors developing
colon-screening blood tests, despite their obviously inferior
efficacy and thus questionable suitability for use as preventative
screening tools.
Figure 2: Performance by sub-sector for the period to 31 May
2024
|
Weighting
|
Perf (USD)
|
Perf (GBP)
|
Generics
|
0.5%
|
36.2%
|
31.3%
|
Facilities
|
0.9%
|
32.5%
|
31.2%
|
Diversified Therapeutics
|
39.0%
|
18.6%
|
17.5%
|
Med-Tech
|
13.7%
|
14.9%
|
13.9%
|
Tools
|
7.5%
|
12.8%
|
12.1%
|
Services
|
2.0%
|
11.6%
|
10.6%
|
Distributors
|
2.0%
|
10.8%
|
10.2%
|
Focused Therapeutics
|
8.2%
|
8.6%
|
7.6%
|
Dental
|
0.4%
|
7.6%
|
6.7%
|
Healthcare Technology
|
0.8%
|
0.7%
|
-0.1%
|
Other HC
|
1.3%
|
-2.8%
|
-3.8%
|
Managed Care
|
11.8%
|
-3.6%
|
-4.5%
|
Conglomerate
|
10.1%
|
-3.8%
|
-4.6%
|
Diagnostics
|
1.2%
|
-4.7%
|
-5.5%
|
Healthcare IT
|
0.5%
|
-9.1%
|
-9.9%
|
Index perf
|
|
10.7%
|
9.7%
|
COMPANY PERFORMANCE REVIEW
The Bellevue Healthcare strategy is
centred around owning companies that are operationally geared into
the adoption of a selected group of products, technologies and
services that we believe are critical to the evolution of the
healthcare delivery paradigm. As its approach is 'bottom up' and
focused around this theme of longer-term healthcare change,
investors should not expect it to deliver correlated returns to the
wider healthcare sector or the wider equity market.
By virtue of their focused and
innovative nature, the holdings in the Company's portfolio tend to
be more small/mid-cap than large/mega-cap. This gives us a size
factor profile that is the inverse of the MSCI World Healthcare
Index and this, independent of company specific newsflow, has been
a significant negative drag on performance through late 2021 to
late 2022, as discussed in previous interim and annual reports (the
Company modestly outperformed its MSCI World Healthcare Index
comparator during the calendar year 2023).
The Company delivered a better
performance in fiscal H1 2024, but it still underperformed the
comparator index on a NAV return basis. During the period in
review, the Company's NAV rose 4.2% in sterling terms (+5.8% in
dollars) to 149.95p. The shares were trading at a discount of 10.3%
on 30 November 2023, the end of last financial year, whereas
the discount had narrowed to 5.6% by 31 May 2024.
Including the dividend payout of
2.995p/share, this represents a sterling total shareholder return
of +12.1% during the period in review, exceeding that of the MSCI
World Healthcare Index by 238bp. Although our strategy is
unconstrained, we utilise the MSCI World Healthcare Index in
sterling as an internal comparator and external reference point;
its parent index is the MSCI World Index and our preferred internal
metric is rolling three-year annualised performance, which is also
presented in Figure 3.
Figure 3: Bellevue Healthcare Trust Financial Performance
Summary for the period to 31 May 2024
|
Six months
|
Rolling three year
(ann.)
|
Since
Inception
|
(All figures in GBP, to 31 May
2024)
|
Return(1)
|
Diff. vs.
Benchmark
|
Return(1)
|
Diff. vs.
Benchmark
|
Return(1)
|
Diff. vs.
Benchmark
|
BB
Healthcare Trust NAV (inc. dividends from
capital)
|
+6.3%
|
-343bp
|
-2.9%
|
-1207bp
|
+89.5%
|
-2740bp
|
BB
Healthcare Trust Total Shareholder return
|
+12.1%
|
+238bp
|
-4.8%
|
-1402bp
|
+79.4%
|
-3752bp
|
MSCI World Healthcare (GBP)
-Comparator
|
+9.7%
|
|
+9.5%
|
|
+116.9%
|
|
MSCI World Index (GBP)
|
+14.9%
|
+518bp
|
+10.5%
|
+91bp
|
+126.7%
|
+975bp
|
FTSE All Share Index
|
+13.5%
|
+383bp
|
+7.4%
|
-212bp
|
+60.7%
|
-5616bp
|
(1) Note - the stated total shareholder return assumes the
reinvestment of dividends.
Although we are pleased to report a
positive relative shareholder return during the period, the rolling
three-year and 'since inception' performance highlights how much
ground has been lost since the H1 report for the 2021 fiscal
year, when our 'since inception' total return was 40.1% ahead of
the MSCI comparator.
Our comparator index is what it is,
and it has very different factor characteristics from those
typified by our investment holdings. Figure 4 in the half yearly
report illustrates the extent to which external factor
characteristics have played a significant role in shaping the
performance of the Company in recent years.
In Figure 4 in the half yearly
report, we illustrate the NAV total return performance of the
Company compared to the mega-cap driven MSCI World Healthcare and
US-only, small and mid-cap focused Russell 2000 healthcare series
over the past three years. The chart serves to illustrate the
extent to which this has been a 'top down' rather than a 'bottom
up' market environment for the most part.
It is highly unusual for the Russell
series to lag behind more mega-cap focused healthcare indices for a
protracted period. For example, during the 20-year period to May
2024, the Russell 2000 healthcare outperformed the MSCI World
healthcare consistently from February 2009 (i.e. the lows of the
global financial crisis) to February 2021, whereupon it began to
materially underperform. In the preceding period from May 2004 to
February 2009, the two indices performed very much in line until
the height of the financial crisis, whereupon the Russell series
sold off to a greater extent before recovering quickly.
Figure 4: Three-year total return data (NAV) - Selected
Healthcare Indices
As frustrating as this continuing
dynamic is, we can feel somewhat reassured by the continuing
positive operating progress of the majority of the portfolio
companies, even if the market remains slow to reward such
progress.
As noted previously, the Company's
share price discount to NAV did improve over the course of the
first half of the year, from what was something of a high level.
The -10.3% discount at the end of the previous financial year
compares to an average discount of -7.0% over the twelve months to
31 May 2024. Discounts are currently a pervasive phenomenon across
the investment trust space (irrespective of underlying asset class)
and seem very resistant to attempts to close them, be it via
buybacks, tenders, redemptions or corporate actions (e.g. asset
disposals to demonstrate innate asset value). The Company's share
buyback programme was active during the period, repurchasing
300,000 ordinary shares.
PORTFOLIO EVOLUTION
The evolution of the portfolio over
the period-in-review is summarised in Figure 5 and we would make
the following observations:
Figure 5: Portfolio sub-sector evolution
|
Subsectors
end Nov 23
|
Subsectors
end May 24
|
Change
|
Diagnostics
|
13.3%
|
13.6%
|
Increased
|
Focused Therapeutics
|
22.2%
|
24.3%
|
Increased
|
Healthcare IT
|
10.4%
|
5.6%
|
Decreased
|
Healthcare Technology
|
5.7%
|
14.5%
|
Increased
|
Managed Care
|
7.8%
|
10.5%
|
Increased
|
Med-Tech
|
19.1%
|
12.2%
|
Decreased
|
Services
|
11.7%
|
14.0%
|
Increased
|
Tools
|
9.9%
|
5.1%
|
Decreased
|
|
100.0%
|
100.0%
|
|
While the portfolio companies were
unchanged, we very modestly reduced our holdings within
Diagnostics, but this was offset by positive investment returns. We
added one additional company to our Focused Therapeutics holdings.
However, we reduced our holdings overall through profit-taking on
the back of strong performance.
We significantly reduced exposure to
the Healthcare IT sector as part of an active re-allocation. The
significant increase in exposure to Healthcare Technology was a
combination of very strong investment returns from Tandem Diabetes
Care and the establishment of a Top-10 position in Dexcom, which is
a portfolio re-entry. We also added materially to our holdings in
Managed Care on the back of weak performance early in the
year.
Our Medical Technology holdings
still consist of nine companies, but two are new (Edwards, Si-Bone)
and we have exited two positions, one of which was due to M&A.
We also took profits on a number of holdings, scaling back our
exposure. We added significantly to our Services holdings, adding
two new positions (Astrana Health and Neogenomics), the latter is
another portfolio re-entry. The reduction in our exposure to Tools
reflects our exit from Pacific Biosciences.
We ended the period with a net cash
position of £18.0m. The portfolio's market capitalisation and
geographical characteristics are summarised in Figures 6 and 7 in
the half yearly report.
Source: Bellevue Asset Management
UK.
Data as of 31 May 2023
Mega Cap >$50bn, Large Cap
>$10bn, Small-Cap <$2bn
Full investment portfolio as of 31 May 2024
|
Company
|
Sub-sector classification
|
% Portfolio
|
1
|
TANDEM DIABETES CARE
|
Health Tech
|
8.2
|
2
|
INSMED
|
Focused Therapeutics
|
6.7
|
3
|
DEXCOM
|
Health Tech
|
6.3
|
4
|
CAREDX
|
Diagnostics
|
5.9
|
5
|
AXSOME THERAPEUTICS
|
Focused Therapeutics
|
5.8
|
6
|
CHARLES RIVER
|
Services
|
5.5
|
7
|
OPTION CARE HEALTH
|
Services
|
5.4
|
8
|
BIO-RAD LABORATORIES
|
Tools
|
5.1
|
9
|
UNITEDHEALTH GROUP
|
Managed Care
|
4.8
|
10
|
EXACT SCIENCES
|
Diagnostics
|
4.5
|
Total Top 10
|
|
58.1
|
11
|
SAREPTA THERAPEUTICS
|
Focused Therapeutics
|
3.7
|
12
|
CASTLE BIOSCIENCES
|
Diagnostics
|
3.3
|
13
|
EVOLENT HEALTH
|
Healthcare IT
|
3.0
|
14
|
EDWARDS LIFESCIENCES
|
Med-Tech
|
3.0
|
15
|
ELEVANCE HEALTH
|
Managed Care
|
2.9
|
16
|
CENTENE
|
Managed Care
|
2.8
|
17
|
INTUITIVE SURGICAL
|
Med-Tech
|
2.7
|
18
|
ACCOLADE
|
Healthcare IT
|
2.6
|
19
|
HUTCHMED
|
Focused Therapeutics
|
2.4
|
20
|
SI-BONE
|
Med-Tech
|
2.2
|
21
|
SILK ROAD MEDICAL
|
Med-Tech
|
2.2
|
22
|
STRUCTURE THERAPEUTICS
|
Focused Therapeutics
|
2.2
|
23
|
APELLIS PHARMACEUTICALS
|
Focused Therapeutics
|
2.0
|
24
|
NEOGENOMICS
|
Services
|
1.9
|
25
|
VERONA PHARMACEUTICALS
|
Focused Therapeutics
|
1.7
|
26
|
INSPIRE MEDICAL SYSTEMS
|
Med-Tech
|
1.3
|
27
|
ASTRANA HEALTH
|
Services
|
1.2
|
28
|
ATRICURE
|
Med-Tech
|
0.6
|
29
|
VENUS MEDTECH
|
Med-Tech
|
0.3
|
Total portfolio
|
|
100.0
|
Gross exposure
|
|
£672.6
million
|
Net
value of investments
|
|
£693.2
million
|
Paul Major and Brett Darke
Bellevue Asset Management (UK)
Ltd
24 July 2024
Portfolio
Top
Ten Holdings
As
at 31 May 2024
|
% of net asset
value
|
Tandem Diabetes Care
|
8.0
|
Insmed
|
6.5
|
Dexcom
|
6.1
|
Caredx
|
5.7
|
Axsome Therapeutics
|
5.6
|
Charles River
|
5.4
|
Option Care Health
|
5.2
|
Bio-Rad Laboratories
|
5.0
|
Unitedhealth Group
|
4.6
|
Exact Sciences
|
4.4
|
Total top 10
|
56.5
|
Other holdings
|
40.3
|
Other net assets
|
3.2
|
Total
|
100.0
|
Sub
Sector Exposure
Allocation as at 31 May 2024
|
% of net asset
value
|
Focused Therapeutics
|
23.5
|
Health Technology
|
14.1
|
Services
|
13.6
|
Diagnostics
|
13.3
|
Medical Technology
|
11.8
|
Managed Care
|
10.1
|
Healthcare IT
|
5.4
|
Tools
|
5.0
|
Other net assets
|
3.2
|
Total
|
100.0
|
Interim Management Report
The Directors are required to
provide an Interim Management Report in accordance with the
Financial Conduct Authority ("FCA") Disclosure Guidance and
Transparency Rules. The Chairman's Statement and the Investment
Manager's Report in this half-yearly report provide details of the
important events which have occurred during the period and their
impact on the financial statements. The following statements on
principal and emerging risks and uncertainties, related party
transactions, going concern and the Directors' Responsibility
Statement, together constitute the Interim Management Report of the
Company for the six months ended 31 May 2024. The outlook for the
Company for the remaining six months of the year ending 30 November
2024 is discussed in the Chairman's Statement and the Investment
Manager's Report.
PRINCIPAL AND EMERGING RISKS AND
UNCERTAINTIES
The Board is responsible for the
management of risks faced by the Company and delegates this role to
the Audit and Risk Committee (the "Committee"). The Committee
carries out, at least annually, a robust assessment of principal
and emerging risks and uncertainties and monitors the risks on an
ongoing basis.
The Committee has a dynamic risk
management programme in place to help identify key risks in the
business and oversee the effectiveness of internal controls and
processes. A detailed explanation of the principal and emerging
risks and uncertainties facing the Company can be found in the
Company's most recent Annual Report and Accounts for the year ended
30 November 2023, on the Company's website at
www.bellevuehealthcaretrust.com.
Since the publication of the 2023
Annual Report and Accounts on 4 March 2024, there continues to be
increased risk levels within the global economy as a result of
emerging geopolitical factors that may translate into greater stock
market risk, as well as heightened macro-economic changes in
inflation and interest rates, the ever-evolving global regulatory
and trade environments and a risk of re-emergence of a global
pandemic. Geopolitical factors include the continuing war in
Ukraine, the conflict in Israel and Gaza, political elections this
year in many countries and global supply chain issues.
The Board closely monitors and
assesses these continued uncertainties as to how they could impact
and effect the Company's trading position with regards our
investment objective, portfolio and our Shareholders and where
appropriate endeavour to mitigate the risk.
RELATED PARTY TRANSACTIONS
The Company's Investment Manager is
Bellevue Asset Management (UK) Ltd ('Bellevue UK'). In its role as
Alternative Investment Fund Manager ('AIFM') of the Company,
Bellevue UK carry out portfolio management services and risk
management services are delegated to Bellevue Asset Management
AG.
Bellevue UK is considered a related
party under the FCA's Listing Rules. Bellevue UK is entitled to
receive management fees payable monthly in arrears calculated at
the rate of one-twelfth of 0.95% (excluding VAT) per calendar
month of the market capitalisation of the Company. There is no
performance fee payable to Bellevue UK. Details of the Investment
Manager's fees during the six months ended 31 May 2024 can be
found in the Condensed Unaudited Statement of Comprehensive Income.
There have been no changes to the related party transactions that
could have a material effect on the financial position or
performance of the Company since the year ended 30 November
2023.
GOING CONCERN
The Board has a reasonable
expectation that the Company has adequate resources to continue in
operational existence for at least the following twelve-month
period from the date of this report. In reaching this conclusion,
the Directors have considered the liquidity of the Company's
portfolio of investments as well as its cash position, income and
expense flows. The Company's net assets as at 31 May 2024 were
£693.2 million (31 May 2023: £876.2 million). As at 31 May 2024,
the Company held £671.1 million (31 May 2023: £883.8 million) in
quoted investments and had cash of £29.7 million (31 May 2023:
£49.6 million). The total expenses (excluding finance costs and
taxation) for the six months ended 31 May 2024 were £3.8 million
(31 May 2023: £4.7 million). As of 31 May 2024, the Company's net
gearing was negative as the Company's net assets are higher than
total assets less cash and cash equivalents (31 May 2023: £8.0
million, equivalent to 0.9% of the gross exposure).
As part of their assessment, the
Board have fully considered and assessed the Company's portfolio of
investments, giving careful consideration to the consequences for
the Company of continuing uncertainties in the global
economy.
The Russian invasion of Ukraine
created significant supply chain disruption and exacerbating
inflationary pressures worldwide. A prolonged and deep stock market
decline would lead to falling values in the Company's investments
or interruptions to cash flow. However, the Company currently has
more than sufficient liquidity available to meet any future
obligations.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm to the best of
their knowledge that:
·
The condensed set of interim financial statements
contained within the half-yearly report has been prepared in
accordance with IAS 34 Interim Financial Reporting; and
·
The interim management report includes a fair
review of the information required by Disclosure Guidance and
Transparency Rules (DTR):
(a) DTR
4.2.7R, being an indication of important events that have occurred
during the first six months of the financial year and 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 year; and
(b) DTR
4.2.8R, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
Company during that period; and any changes in the related party
transactions described in the last Annual Report that could do
so.
The half-yearly Financial Report has
not been audited or reviewed by the Company's auditor.
Signed on behalf of the Board of
Directors
Randeep Grewal
Chairman
24 July 2024
Financial Statements
Condensed Unaudited Statement of Comprehensive
Income
for
the six months ended 31 May 2024
|
|
Six months ended
31 May 2024
|
Six months ended
31 May 2023
|
Year ended
30 November 2023*
|
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
Note
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Gains/(losses) on
investments
|
|
-
|
46,757
|
46,757
|
-
|
(42,408)
|
(42,408)
|
-
|
(109,626)
|
(109,626)
|
Losses on currency
movements
|
|
-
|
(695)
|
(695)
|
-
|
(451)
|
(451)
|
-
|
(789)
|
(789)
|
Net
investment gains/(losses)
|
|
-
|
46,062
|
46,062
|
-
|
(42,859)
|
(42,859)
|
-
|
(110,415)
|
(110,415)
|
Income
|
4
|
1,055
|
-
|
1,055
|
1,067
|
-
|
1,067
|
2,469
|
-
|
2,469
|
Total income
|
|
1,055
|
46,062
|
47,117
|
1,067
|
(42,859)
|
(41,792)
|
2,469
|
(110,415)
|
(107,946)
|
Investment management
fees
|
|
(630)
|
(2,520)
|
(3,150)
|
(824)
|
(3,297)
|
(4,121)
|
(1,559)
|
(6,236)
|
(7,795)
|
Other expenses
|
|
(592)
|
-
|
(592)
|
(542)
|
-
|
(542)
|
(1,090)
|
-
|
(1,090)
|
Gain/(loss) before finance costs and
taxation
|
|
(167)
|
43,542
|
43,375
|
(299)
|
(46,156)
|
(46,455)
|
(180)
|
(116,651)
|
(116,831)
|
Finance costs
|
5
|
(265)
|
(1,062)
|
(1,327)
|
(408)
|
(1,635)
|
(2,043)
|
(810)
|
(3,240)
|
(4,050)
|
Operating profit/(loss) before taxation
|
|
(432)
|
42,480
|
42,048
|
(707)
|
(47,791)
|
(48,498)
|
(990)
|
(119,891)
|
(120,881)
|
Taxation
|
6
|
(38)
|
-
|
(38)
|
(85)
|
-
|
(85)
|
(157)
|
-
|
(157)
|
Gain/(loss) for the period/year
|
|
(470)
|
42,480
|
42,010
|
(792)
|
(47,791)
|
(48,583)
|
(1,147)
|
(119,891)
|
(121,038)
|
Return per Ordinary Share
|
7
|
(0.10)p
|
9.19p
|
9.08p
|
(0.14)p
|
(8.63)p
|
(8.77)p
|
(0.21)p
|
(21.85)p
|
(22.06)p
|
* Audited.
There is no other comprehensive
income and therefore the 'Gain/(loss) for the period/year' is the
total comprehensive income for the period.
The total column of the above
statement is the statement of comprehensive income of the Company.
The supplementary revenue and capital columns, including the
earnings per Ordinary Shares, are prepared under guidance from the
Association of Investment Companies.
All revenue and capital items in the
above statement derive from continuing operations.
The notes to the Condensed Unaudited
Financial Statements form an integral part of these financial
statements.
Condensed Unaudited Statement of Financial
Position
as
at 31 May 2024
|
|
31 May 2024
|
31 May 2023
|
30 November
2023*
|
|
Note
|
£'000
|
£'000
|
£'000
|
Non-current assets
|
|
|
|
|
Investments held at fair value
through profit or loss
|
3
|
671,131
|
883,801
|
696,916
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
29,738
|
49,633
|
110,954
|
Sales for future
settlement
|
|
6,592
|
-
|
22
|
Other receivables
|
|
168
|
175
|
111
|
|
|
36,498
|
49,808
|
111,087
|
Total assets
|
|
707,629
|
933,609
|
808,003
|
Current liabilities
|
|
|
|
|
Purchases for future
settlement
|
|
(1,783)
|
-
|
-
|
Bank loans payable
|
5
|
(11,777)
|
(56,513)
|
(31,696)
|
Other payables
|
|
(883)
|
(906)
|
(110,770)
|
Total liabilities
|
|
(14,443)
|
(57,419)
|
(142,466)
|
Net
assets
|
|
693,186
|
876,190
|
665,537
|
Equity
|
|
|
|
|
Share capital
|
8
|
4,803
|
5,577
|
4,803
|
Share premium account
|
|
-
|
617,709
|
617,709
|
Special distributable
reserve
|
|
603,348
|
-
|
-
|
Capital reserve
|
|
87,942
|
254,986
|
45,462
|
Revenue reserve
|
|
(2,907)
|
(2,082)
|
(2,437)
|
Total equity
|
|
693,186
|
876,190
|
665,537
|
Net
asset value per Ordinary Share
|
9
|
149.95p
|
159.62p
|
143.87p
|
* Audited.
Approved by the Board of Directors
on and authorised for issue on 24 July 2024 and signed on their
behalf by:
Randeep Grewal
Chairman
Registered in England and Wales with
registered number 10415235.
The notes to the Condensed Unaudited
Financial Statements form an integral part of these financial
statements.
Condensed Unaudited Statement of Changes in
Equity
for
the six months ended 31 May 2024
|
|
Share
|
Special
|
|
|
|
|
Share
|
premium
|
distributable
|
Capital
|
Revenue
|
|
|
Capital
|
account
|
reserve
|
reserve
|
reserve
|
Total
|
Notes
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Opening balance as at 01 December
2023
|
4,803
|
617,709
|
-
|
45,462
|
(2,437)
|
665,537
|
Gain for the period
|
-
|
-
|
-
|
42,480
|
(470)
|
42,010
|
Transfer to special distributable
reserve
|
|
(617,709)
|
617,709
|
-
|
-
|
-
|
Buybacks of ordinary shares held in
treasury
|
-
|
-
|
(451)
|
-
|
-
|
(451)
|
Buybacks and special distributable
reserve transfer costs
|
-
|
-
|
(65)
|
-
|
-
|
(65)
|
Dividend paid
|
-
|
-
|
(13,845)
|
-
|
-
|
(13,845)
|
Closing balance as at 31 May 2024
|
4,803
|
-
|
603,348
|
87,942
|
(2,907)
|
693,186
|
for
the six months ended 31 May 2023
|
|
|
Share
|
Special
|
|
|
|
|
|
Share
|
premium
|
distributable
|
Capital
|
Revenue
|
|
|
|
Capital
|
account
|
reserve
|
reserve
|
reserve
|
Total
|
|
Notes
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Opening balance as at
01 December 2022
|
|
5,881
|
617,371
|
28,347
|
354,017
|
(1,290)
|
1,004,326
|
Loss for the period
|
|
-
|
-
|
-
|
(47,791)
|
(792)
|
(48,583)
|
Issue of Ordinary Shares
|
8
|
2
|
340
|
-
|
-
|
|
342
|
Redemption of ordinary
shares
|
8
|
(306)
|
-
|
(10,491)
|
(39,454)
|
|
(50,251)
|
Buybacks of ordinary shares held in
treasury
|
|
-
|
-
|
-
|
(11,786)
|
|
(11,786)
|
Ordinary Share issue, Buybacks and
Redemption costs
|
|
-
|
(2)
|
(81)
|
-
|
|
(83)
|
Dividend paid
|
|
-
|
-
|
(17,775)
|
-
|
|
(17,775)
|
Closing balance as at 31 May 2023
|
|
5,577
|
617,709
|
-
|
254,986
|
(2,082)
|
876,190
|
for
the year ended 30 November 2023 (Audited)
|
|
|
Share
|
Special
|
|
|
|
|
|
Share
|
premium
|
distributable
|
Capital
|
Revenue
|
|
|
|
Capital
|
account
|
reserve
|
reserve
|
reserve
|
Total
|
|
Notes
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Opening balance as at
01 December 2022
|
|
5,881
|
617,371
|
28,347
|
354,017
|
(1,290)
|
1,004,326
|
Loss for the period
|
|
-
|
-
|
-
|
(119,891)
|
(1,147)
|
(121,038)
|
Issue of Ordinary Shares
|
8
|
2
|
340
|
-
|
-
|
-
|
342
|
Redemption of ordinary
shares
|
8
|
(1,080)
|
-
|
(10,491)
|
(148,688)
|
-
|
(160,259)
|
Buybacks of ordinary shares held in
treasury
|
|
-
|
-
|
-
|
(23,439)
|
-
|
(23,439)
|
Ordinary Share issue, Buybacks and
Redemption costs
|
|
-
|
(2)
|
(81)
|
(102)
|
-
|
(185)
|
Dividend paid
|
|
-
|
-
|
(17,775)
|
(16,435)
|
-
|
(34,210)
|
Closing balance as at 30 November 2023
|
|
4,803
|
617,709
|
-
|
45,462
|
(2,437)
|
665,537
|
The Company's distributable reserves
consist of the special distributable reserve, capital reserve
attributable to realised profit and revenue reserve.
The Company can use its
distributable reserves to fund dividends, redemptions of Ordinary
Shares and share buy backs.
The notes to the Condensed Unaudited
Financial Statements are an integral part of these financial
statements 
Condensed Unaudited Statement of Cash Flows
for
the six months ended 31 May 2024
|
Six months
|
Six months
|
Year ended
|
|
ended
|
ended
|
30 November
|
|
31 May 2024
|
31 May 2023
|
2023*
|
|
£'000
|
£'000
|
£'000
|
Operating activities Cash flows
|
|
|
|
Income**
|
1,055
|
1,067
|
2,469
|
Operating expenses
|
(3,790)
|
(4,632)
|
(8,852)
|
Taxation
|
(38)
|
(85)
|
(157)
|
Net
cash flow used in operating activities
|
(2,773)
|
(3,650)
|
(6,540)
|
Investing activities Cash flows
|
|
|
|
Purchase of investments
|
(259,013)
|
(113,101)
|
(303,144)
|
Sale of investments
|
326,749
|
229,701
|
533,774
|
Net
cash flow from/(used in) investing activities
|
67,736
|
116,600
|
230,630
|
Financing activities Cash flows
|
|
|
|
Bank loans drawn
|
11,784
|
-
|
15,722
|
Bank loans repaid
|
(31,454)
|
(24,071)
|
(63,121)
|
Loan interest and other charges
paid
|
(1,196)
|
(2,463)
|
(4,552)
|
Dividend paid
|
(13,845)
|
(17,775)
|
(34,210)
|
Proceeds from issue of Ordinary
Shares
|
-
|
342
|
342
|
Annual redemption of ordinary
shares
|
(110,008)
|
(50,251)
|
(50,251)
|
Buybacks of Ordinary Shares held in
treasury
|
(451)
|
(11,786)
|
(23,439)
|
Share issue, Buybacks and Redemption
costs
|
(65)
|
(83)
|
(185)
|
Net
cash flow from financing activities
|
(145,235)
|
(106,087)
|
(159,694)
|
Increase/(decrease) in cash and cash
equivalents
|
(80,272)
|
6,863
|
64,396
|
Cash and cash equivalents at start
of period
|
110,954
|
46,368
|
46,368
|
Effect of foreign currency
movements
|
(944)
|
(3,598)
|
190
|
Cash and cash equivalents at end of period
|
29,738
|
49,633
|
110,954
|
* Audited.
** Cash inflow from dividends for
the financial period was £256,000 (31 May 2023: £359,000 and 30
November 2023: £765,000). Bank deposits interest income received
during the period was £799,000 (31 May 2023: £623,000 and 30
November 2023: £1,547,000).
The table below shows the movement
in borrowings during the period.
|
Six months
|
Six months
|
Year ended
|
|
ended
|
ended
|
30 November
|
|
31 May 2024
|
31 May 2023
|
2023*
|
|
£'000
|
£'000
|
£'000
|
Opening balance
|
31,696
|
83,731
|
83,731
|
Repayment of bank loans
|
(31,454)
|
(24,071)
|
(63,121)
|
Proceeds from bank loans
|
11,784
|
-
|
15,722
|
Foreign exchange
movements
|
(249)
|
(3,147)
|
(4,636)
|
Closing balance
|
11,777
|
56,513
|
31,696
|
The notes to the Condensed Unaudited
Financial Statements form an integral part of these financial
statements.
Notes to the Condensed Unaudited Financial
Statements
1.
REPORTING ENTITY
Bellevue Healthcare Trust plc is a
closed-ended investment company, registered in England and Wales on
7 October 2016. The Company's registered office is 4th Floor, 46-48
James Street, London, W1U 1EZ. Business operations commenced on 2
December 2016 when the Company's Ordinary Shares were admitted to
trading on the London Stock Exchange. The financial statements of
the Company are presented for the period from 1 December 2023 to 31
May 2024.
The Company invests in a
concentrated portfolio of listed or quoted equities in the global
healthcare industry. The Company may also invest in American
Depositary Receipts (ADRs), or convertible instruments issued by
such companies and may invest in, or underwrite, future equity
issues by such companies. The Company may utilise contracts for
differences for investment purposes in certain jurisdictions where
taxation or other issues in those jurisdictions may render direct
investment in listed or quoted equities less effective.
2.
BASIS OF PREPARATION
Statement of compliance
The condensed unaudited interim
financial statements have been prepared in accordance with IAS 34
Interim Financial Reporting and the Disclosure Guidance and
Transparency Rules ("DTRs") of the UK's Financial Conduct
Authority. They do not include all of the information required for
full annual financial statements and should be read in conjunction
with the financial statements of the Company as at and for the year
ended 30 November 2023. The financial statements of the Company for
the year ended 30 November 2023 were prepared in accordance with
UK-adopted International Accounting Standards and in conformity
with the requirements of the Companies Act 2006. The accounting
policies used by the Company are the same as those applied by the
Company in its financial statements for the year ended 30 November
2023. The financial information for the year ended 30 November 2023
in the condensed interim unaudited financial statements has been
extracted from the audited Annual Report and Accounts.
When presentational guidance set out
in the Statement of Recommended Practice ('SORP') for Investment
Companies issued by the Association of Investment Companies ('the
AIC') in July 2022 is consistent with the requirements of UK
adopted International Accounting Standards, the Directors have
sought to prepare the financial statements on a basis compliant
with the recommendations of the SORP.
Going concern
The Directors have adopted the going
concern basis in preparing the financial statements.
The Directors have a reasonable
expectation that the Company has adequate operational resources to
continue in operational existence for at least twelve months from
the date of approval of these financial statements.
In reaching this conclusion, the
Directors have considered the liquidity of the Company's portfolio
of investments as well as its cash position, income, and expense
flows.
Use
of estimates and judgements
The preparation of the financial
statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions
are reviewed on an on-going basis. Revisions to accounting
estimates are recognised in the period in which the estimates are
revised and in any future periods affected. There have been no
changes to the significant estimates, judgements, and assumptions
to those set out in the 2023 Annual Report.
Basis of measurement
The financial statements have been
prepared on the historical cost basis except for financial
instruments at fair value through profit or loss, which are
measured at fair value.
Functional and presentation currency
The financial statements are
presented in sterling, which is the Company's functional currency.
The Company's investments are denominated in multiple currencies.
However, the Company's shares are issued in sterling and the
majority of its investors are UK based. In addition, the majority
of expenses are paid in sterling, as are dividends. All financial
information presented in sterling have been rounded to the nearest
thousand pounds.
Investments
Upon initial recognition investments
are designated by the Company "at fair value through profit or
loss". They are accounted for on the date they are traded and are
included initially at fair value which is taken to be their cost.
Subsequently quoted investments are valued at fair value, which is
the bid market price, or if bid price is unavailable, last traded
price on the relevant exchange. Unquoted investments are valued at
fair value by the Board which is established with regard to the
International Private Equity and Venture Capital Valuation
Guidelines, by using, where appropriate, latest dealing prices,
valuations from reliable sources and other relevant
factors.
Changes in the fair value of
investments held at fair value through profit or loss and gains or
losses on disposal are included in the capital column of the
Statement of Comprehensive Income within "gains/(losses) on
investments".
Investments are derecognised on the
trade date of their disposal, which is the point where the Company
transfers substantially all the risks and rewards of the ownership
of the financial asset.
Adoption of new and revised standards period
At the date of approval of these
financial statements, there were no new or revised standards or
interpretations relevant to the Company which had come into
effect.
3.
INVESTMENT HELD AT FAIR VALUE THROUGH PROFIT OR
LOSS
(a)
Summary of valuation
|
31 May
|
31 May
|
30 November
|
|
2024
|
2023
|
2023
|
As
at
|
£'000
|
£'000
|
£'000
|
Investments held at fair value
through profit or loss
|
|
|
|
- Quoted overseas
|
671,131
|
883,801
|
696,916
|
Closing valuation
|
671,131
|
883,801
|
696,916
|
Under IFRS 13 'Fair Value
Measurement', an entity is required to classify investments using a
fair value hierarchy that reflects the significance of the inputs
used in making the measurement decision.
The following shows the analysis of
financial assets recognised at fair value based on:
Level 1
The unadjusted quoted price in an
active market 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 (i.e. developed using
market data) for the asset or liability, either directly or
indirectly.
Level 3
Inputs are unobservable (i.e. for
which market data is unavailable) for the asset or
liability.
The classification of the Company's
investments held at fair value is detailed in the table
below:
|
As at 31 May
2024
|
As at 31 May
2023
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Investments at fair value through
profit and loss - Quoted
|
669,120
|
-
|
2,011
|
671,131
|
883,801
|
-
|
-
|
883,801
|
|
As at 30 November
2023
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
Investments at fair value through
profit and loss - Quoted
|
694,884
|
-
|
2,032
|
696,916
|
The level 3 investment comprises the
Company's holding in Venus MedTech, which was suspended from
trading during 2023.
Fair values of financial assets and financial
liabilities
All financial assets and liabilities
are recognised in the financial statements at fair value, with the
exception of short-term assets and liabilities, which are held at
nominal value that approximates to fair value, and loans that are
initially recognised at the fair value of the consideration
received, less directly attributable costs, and subsequently
recognised at amortised cost. The carrying value of the loans
approximates to the fair value of the loans.
There were no transfers between
levels during the period ended 31 May 2024 (30 November 2023:
one).
4.
INCOME
|
Six months
|
Six months
|
|
|
ended
|
ended
|
Year ended
|
|
31 May
|
31 May
|
30 November
|
|
2024
|
2023
|
2023
|
|
£'000
|
£'000
|
£'000
|
Income from investments
|
|
|
|
Overseas dividends
|
256
|
444
|
922
|
Bank interest on deposits
|
799
|
623
|
1,547
|
Total income
|
1,055
|
1,067
|
2,469
|
5.
BANK LOANS AND FINANCE COSTS
As at 31 May 2024, the aggregate of
loans draw down was USD 15,000,000 equivalent of £11,777,000 (31
May 2023: £56,513,000 and 30 November 2023:
£31,696,000).
The table below shows the finance
costs in relation to the Company's loans draw down.
|
Six months ended
31 May 2024
|
Six months ended
31 May 2023
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Loan interest
|
262
|
1,050
|
1,312
|
405
|
1,621
|
2,026
|
Other finance costs
|
3
|
12
|
15
|
3
|
14
|
17
|
Total
|
265
|
1,062
|
1,327
|
408
|
1,635
|
2,043
|
|
Year
ended
30 November 2023
|
|
Revenue
|
Capital
|
Total
|
|
£'000
|
£'000
|
£'000
|
Loan interest
|
703
|
2,810
|
3,513
|
Other finance costs
|
107
|
430
|
537
|
Total
|
810
|
3,240
|
4,050
|
6.
TAXATION
(a)
Analysis of tax charge for the period:
|
Six months ended
31 May 2024
|
Six months ended
31 May 2023
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Withholding tax expense
|
38
|
-
|
38
|
85
|
-
|
85
|
Total tax charge for the period
|
38
|
-
|
38
|
85
|
-
|
85
|
|
Year ended
30 November 2023
|
|
Revenue
|
Capital
|
Total
|
|
£'000
|
£'000
|
£'000
|
Withholding tax expense
|
157
|
-
|
157
|
Total tax charge for the period
|
157
|
-
|
157
|
7.
RETURN PER SHARE
Return per share is based on the
weighted average number of Ordinary Shares in issue, excluding
shares held in treasury, during the six months ending 31 May 2024
of 462,448,113 (31 May 2023: 553,461,838 and 30 November 2023:
548,691,353).
|
As at
31 May 2024
|
As at
31 May 2023
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
Profit/(loss) for the period
(£'000)
|
(470)
|
42,480
|
42,010
|
(792)
|
(47,791)
|
(48,583)
|
Return/(loss) per Ordinary Share
(basic and diluted)
|
(0.10)p
|
9.19p
|
9.08p
|
(0.14)p
|
(8.63)p
|
(8.77)p
|
|
As at 30 November
2023
|
|
Revenue
|
Capital
|
Total
|
Loss for the year (£'000)
|
(1,147)
|
(119,891)
|
(121,038)
|
Loss per Ordinary Share (basic and
diluted)
|
(0.21)p
|
(21.85)p
|
(22.06)p
|
8.
SHARE CAPITAL
|
As at 31 May
2024
|
As at 31 May
2023
|
|
No. of
shares
|
£'000
|
No. of
shares
|
£'000
|
Allotted, issued and fully paid:
|
|
|
|
|
Redeemable Ordinary Shares of 1p
each ('Ordinary Shares')
|
462,288,550
|
4,623
|
548,924,670
|
5,489
|
Shares held in treasury
|
16,698,646
|
167
|
7,490,560
|
75
|
Management Shares of £1
each
|
50,001
|
13
|
50,001
|
13
|
Total
|
479,037,197
|
4,803
|
556,465,231
|
5,577
|
|
As at 30 November
2023
|
|
No. of
shares
|
£'000
|
Allotted, issued and fully paid:
|
|
|
Redeemable Ordinary Shares of 1p
each ('Ordinary Shares')
|
462,588,550
|
4,626
|
Shares held in treasury
|
16,398,646
|
164
|
Management Shares of £1
each
|
50,001
|
13
|
Total
|
479,037,197
|
4,803
|
Share Movement
During the six months to 31 May
2024, 300,000 Ordinary Shares (31 May 2023: 7,490,560 and
30 November 2023: 16,398,646) were bought back into treasury
through the Company's share buyback programme. In the period from
31 May to 22 July 2024, a further 2,659,934 Ordinary Shares have
been bought back into treasury, with aggregate cost of
£3,803,000.
9.
NET ASSETS PER ORDINARY SHARE
Net assets per Ordinary Share as at
31 May 2024 is based on £693,186,000 of net assets of the Company
attributable to the 462,288,550 Ordinary Shares in issue (excluding
treasury shares) as at 31 May 2024. £12,500 of net assets as at 31
May 2024 is attributable to the Management Shares.
10.
DIVIDEND
During the six months ended 31 May
2024, the Company paid a dividend of 2.995p per Ordinary Share in
respect of the year ended 30 November 2023.
The directors recommend the payment
of an interim dividend for the period of 2.52p per share. The
dividend will have an ex‑dividend date of 1 August 2024 and
will be paid on 29 August 2024 to shareholders on the register at 2
August 2024. The dividend will be funded from the Company's
distributable reserves.
11.
RELATED PARTY TRANSACTIONS
Fees payable to the Investment
Manager are shown in the Statement of Comprehensive Income. As at
31 May 2024, the fee outstanding to the Investment Manager was
£523,000 (31 May 2023: £662,000 and 30 November 2023:
£461,000).
The Directors had the following
shareholdings in the Company, all of which are beneficially
owned.
|
As at
31 May 2024
|
As at
31 May 2023
|
As at
30 November 2023
|
Randeep Grewal
|
165,090
|
133,271
|
149,552
|
Josephine Dixon
|
131,102
|
106,159
|
119,473
|
Paul Southgate
|
100,723
|
88,408
|
95,226
|
Tony Young
|
37,511
|
25,266
|
32,084
|
Kate Bolsover
|
31,688
|
19,556
|
26,335
|
12.
POST BALANCE SHEET EVENTS
There are no post balance sheet
events, other than those disclosed in this report.
13.
STATUS OF THIS REPORT
These interim financial statements
are not the Company's statutory accounts for the purposes of
section 434 of the Companies Act 2006. They are unaudited. The
unaudited half-yearly report will be made available to the public
at the registered office of the Company. The report will also be
available in electronic format on the Company's website,
https://www.bellevuehealthcaretrust.com.
The information for the year ended 30 November 2023 has been
extracted from the last published audited financial statements,
unless otherwise stated. The audited financial statement has been
delivered to the Registrar of Companies. The Company's auditor
reported on those accounts and their report was unqualified, did
not draw attention to any matters by way of emphasis and did not
contain a statement under sections 498(2) or 498(3) of the
Companies Act 2006. The half-yearly report was approved by the
Board of Directors on 24
July 2024.
Alternative Performance Measures ('APMs')
DISCOUNT
The amount, expressed as a
percentage, by which the share price is less than the Net Asset
Value per Ordinary Share.
As
at 31 May 2024
|
|
|
NAV per Ordinary Share
(pence)
|
a
|
149.95
|
Share price (pence)
|
b
|
141.60
|
Premium/(Discount)
|
(b÷a)-1
|
-5.6%
|
GEARING
A way to magnify income and capital
returns, but which can also magnify losses. A bank loan is a common
method of gearing.
As
at 31 May 2024
|
|
£'000
|
Total assets less cash/cash
equivalents
|
a
|
677,891
|
Net assets
|
b
|
693,186
|
Gearing (net)*
|
(a÷b)-1
|
nil
|
* Net assets are higher than total
assets less cash/cash equivalents. As such net gearing is negative
and therefore reported as 'nil' in the above table.
LEVERAGE
An alternative word for
"Gearing".
(See gearing for
calculations).
Under AIFMD, leverage is any method
by which the exposure of an AIF is increased through borrowing of
cash or securities or leverage embedded in derivative
positions.
Under AIFMD, leverage is broadly
similar to gearing, but is expressed as a ratio between the assets
(excluding borrowings) and the net assets (after taking account of
borrowing). Under the gross method, exposure represents the sum of
the Company's positions after deduction of cash balances, without
taking account of any hedging or netting arrangements. Under the
commitment method, exposure is calculated without the deduction of
cash balances and after certain hedging and netting positions are
offset against each other.
ONGOING CHARGES
A measure, expressed as a percentage
of average daily net assets, of the regular, recurring annual costs
of running an investment company.
As
at 31 May 2024
|
|
£
|
Average NAV
|
a
|
729,969,172
|
Annualised expenses
|
b
|
6,440,000
|
Ongoing charges
|
(b÷a)
|
0.88%
|
TOTAL RETURN
A measure of performance that
includes both income and capital returns. This takes into account
capital gains and reinvestment of dividends paid out by the Company
into the Ordinary Shares of the Company on the ex-dividend
date.
As
at 31 May 2024
|
|
Share price
|
NAV
|
Opening at 1 December 2023
(p)
|
a
|
129.00
|
143.87
|
Closing at 31 May 2024
(p)
|
b
|
141.60
|
149.95
|
Price movement (b÷a)-1
|
c
|
9.8%
|
4.2%
|
Dividend reinvestment
|
d
|
2.3%
|
2.1%
|
Total return
|
(c+d)
|
12.1%
|
6.3%
|
n/a = not applicable.
Contact information:
Brian Smith/Ciara McKillop 020 3327
9720
NSM Funds (UK) Limited
The half-yearly report will be
submitted to the National Storage Mechanism and will shortly be
available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism