Half Year Report & Unaudited Financial Statements

Genesis EMERGING MARKETS FUND LIMITED

 

Half Year Report and Unaudited Financial Statements
for the six months ended 31 December 2019

 

The Directors of Genesis Emerging Markets Fund Limited (the 'Fund' or 'GEMF') announce the Fund's results for the six months ended 31 December 2019. The Half Year Report and Unaudited Financial Statements will shortly be available from the Fund's website www.genesisemf.com and also for inspection on the National Storage Mechanism, which is located at www.morningstar.co.uk/uk/NSM where users can access the regulated information provided by listed entities.

 

 

Introduction

 

Objective

The objective of Genesis Emerging Markets Fund Limited (the 'Fund' or 'GEMF') is to achieve long-term capital growth, primarily through investment in equity markets of low- and middle-income countries.

 

Structure

GEMF is a Guernsey based Authorised Closed-Ended Investment Scheme with the ability to issue additional shares. The Fund's shares are listed on the premium segment of the Official List of the UK Listing Authority, traded on the London Stock Exchange and are included in the FTSE 250. The number of Participating Preference Shares in issue is 121,466,754 as at 31 December 2019 (30 June 2019: 121,466,754).

 

Investment Manager

Genesis Investment Management, LLP (the 'Investment Manager', 'GIM, LLP' or 'Genesis').

 

Investment Approach

The investment approach is to identify companies which are able to take advantage of growth opportunities in Emerging Markets and invest in them when they are trading at an attractive discount to the Investment Manager's assessment of their intrinsic value.

 

 

Highlights and Performance

 

GEMF Total Return in GBP for the Six Months to 31 December 2019

 

6.6%	4.5%	3.1%
Share Price Total Return(1)	Net Asset Value per Participating Preference Share Total Return(1)	MSCI EM (TR) Index(2)

 

 

	31 December	30 June
	2019	2019	% change
USD
Net Assets(3)	$1,395.7m	$1,305.3m	6.9
Net Asset Value per Participating Preference Share(3)	$11.49	$10.75	6.9
Dividend per Participating Preference Share(3)	$0.19	$0.19	-
GBP
Net Assets(4)	£1,053.5m	£1,025.6m	2.7
Net Asset Value per Participating Preference Share(4)	£8.67	£8.44	2.7
Share Price	£7.92	£7.57	4.6
Discount of Share Price to Net Asset Value per
Participating Preference Share(1)	8.7%	10.3%
Number of Participating Preference Shares	121,466,754	121,466,754
Ongoing charges ratio(1)	1.07%	1.11%
Countries represented in portfolio	32	32
Number of holdings	108	112

 

⁽¹⁾     Alternative Performance Measures - refer to Glossary of Terms.

⁽²⁾     MSCI Emerging Markets (Total Return) Index.

⁽³⁾     IFRS measure.

⁽⁴⁾     Translation of the USD measures using the GBP/USD exchange rate as at 31 December 2019 of 1.3248 (30 June 2019: 1.2727).

 

 

Chairman's Statement

 

I have pleasure in presenting to shareholders the Half Year Report and Unaudited Financial Statements for the six months ended 31 December 2019.

 

Overview

In the first six months of the financial year the Fund's net asset value (NAV) rose by 4.5% in sterling total return terms to £8.67 per Participating Preference Share. This compares to a rise of 3.1% in the Fund's benchmark, the MSCI Emerging Markets Total Return Index (the 'Index'). Over the same period, the Fund's share price rose by 6.6% to £7.92 (adjusted for dividends paid). In 2019 the Fund's NAV rose by 23.3% against an index return of 14.3% (the share price rose by 26.9%).

 

Such performance was obviously pleasing, and as the Investment Manager, Genesis, will highlight in their review, must be viewed in a longer-term context when considering the investment process that has delivered such returns. Genesis focuses on a consistent approach in delivering a diversified portfolio of quality businesses run by aligned management teams. A long-term investment horizon supported by a rigorous fundamental research process is a key pillar of success, and the investment team spend a significant amount of their research effort in assessing the sustainability of a company's competitive advantages, including how its culture helps to make it different. As previously mentioned, the Fund has benefited significantly from opportunities arising from market weakness at the end of 2018 and into early 2019, with several new positions, particularly in China, contributing substantially to relative performance. For the duration of 2019 performance was particularly strong in China where the Fund's positions in good quality, entrepreneurial and consumer orientated businesses returned 40%, approximately 20 percentage points ahead of the country benchmark. Investments in Korea and Brazil were also noticeable strong performers, while exposure to financial stocks generated a return of 28% versus a sector return of 9%. Further value was derived from a broad range of positions across other markets.

 

The outlook for 2020 and beyond is encouraging. Significant components of the portfolio continue to show compelling IRR's, which includes weightings in frontier markets and smaller capitalisation companies. Such companies have not been in favour for some considerable time and may now come to the fore. Additionally, the Investment Manager has demonstrated decisiveness and discipline in reducing positions through the year in which valuations became less attractive, illustrated by unusually high portfolio turnover of 37% in 2019 - yet still a low number by market standards.

 

A more detailed explanation of the Fund's performance is provided in the Investment Manager's Review.

 

The Fund held its Annual General Meeting ('AGM') on 4 November 2019, and as ever, we appreciate shareholders' support and thank you for your approval of all resolutions presented at the meeting. The subsequent Shareholder Information Meeting on 5 November 2019 provided shareholders an opportunity to hear from, and ask questions of, representatives of the Investment Manager.

 

A dividend of 14.78p (19.0 cents) per Participating Preference Share was paid to shareholders on 13 December 2019. As discussed in the 2019 Annual Report, the Board considers that this level of dividend represents an appropriate balance between the various differing interests, and opinions, held across the shareholder base - while maintaining the fundamental focus on capital growth as the Fund's primary objective.

 

A new Investment Management Agreement was entered into between GIM, LLP and the Fund effective from 30 June 2019 and the management fee payable to GIM, LLP was reduced to 0.90% of NAV per annum. This revision was approved by a Class meeting held on 21 June 2019 and subsequent Extraordinary General Meeting on the same date. The Board continue to monitor the appropriateness of such a fee level in relation to the peer group of similar closed end funds.

 

Discount

The discount of the share price to NAV at the end of the period was 8.7%. The average discount over the six months under review was 10.8% and has fluctuated within a range of 8.5% to 13.1%. The Board continue to consider carefully such statistics, their relevance in comparison with an appropriate peer group, and potential options for active management of the discount. As a reminder, a tender offer took place in 2018. Such action has had limited impact on the longer-term discount, which continues to move broadly in line with the Fund's associated peer group. Marketing activity was also stepped up in support of increasing the Fund's liquidity and widening its shareholder base, following the appointment of an external agency, Edison, to raise exposure to both the wholesale and retail sectors. Information on GEMF as well as interviews of the Investment Manager can be found on Edison's website, www.edisongroup.com.

 

The Board

At a Board meeting in June 2019, Dr Simon Colson was appointed as an independent Non-Executive Director of the Fund with effect from 1 July 2019. Dr Colson has over 30 years' experience in financial markets, working in investment banking, investment management and financial consulting. The retirement of Dr John Llewellyn was also noted, with the Board thanking him for nine years of excellent service. Shareholders approved Dr Colson's appointment at the AGM, at which, the remaining five Directors stood for re-election in accordance with the requirements of the AIC Code of Corporate Governance and the UK Corporate Governance Code, and were duly re-elected. As ever, we continue to review how best the Board can provide the appropriate mix of skill, expertise and experience necessary in representing the interests of all shareholders. I continue to feel that we have such a combination and will continue to ensure that we remain current with best market practice.

 

AGM, Shareholder Meeting and Shareholder Communication

The Board wishes to ensure that shareholders have access to a range of up-to-date information about the Fund. As well as releasing announcements to the London Stock Exchange and issuing the Annual and Half-Yearly Reports, we encourage all shareholders to refer to the information on investment performance and portfolio activity contained in the Fund's monthly factsheets. These - and other Fund literature - can be found on the Fund's website: www.genesisemf.com, which is monitored regularly in order to provide as up to date information as possible. Shareholders may also wish now to avail themselves of the semi-annual shareholder call organised by the Investment Manager. In general, the Investment Manager will usually be best placed to address queries from shareholders. Clearly, however, it is important for shareholders to be able to communicate directly with the Board when necessary. I have continued to speak regularly with major shareholders over the year but invite any shareholders to contact me or Russell Edey (as Senior Independent Director), or indeed any of the Board, with comments and feedback. We can be reached via either the Investment Manager or the Administrator.

 

Outlook

While the short-term performance of the Fund is obviously pleasing, we are reminded by the Investment Manager that the portfolio remains focused on the long term, in maintaining a disciplined and consistent investment approach across inevitable market fluctuations. While the recent Coronavirus outbreak in China has introduced heightened levels of volatility and uncertainty in markets, we remain optimistic on the longer-term outlook for Emerging Markets, for many of the reasons that were valid when the Fund was launched fully thirty years ago. We expect continued growth from rising working age populations in Emerging Markets, and continuing convergence with higher income countries. We also remain of the view that Emerging Market equities are less efficiently priced than their Developed Markets counterparts, highlighting the utility of a rigorous fundamental research process.

 

We are also comforted that the Investment Manager remains abreast of ever-more important Economic Social and Governance ('ESG') considerations in evaluating the suitability of a company for your portfolio. Stakeholder analysis has long been integral to the Investment Manager's process of quality assessment, given that long-term cashflow generation depends upon business sustainability. Additionally, as a signatory to the UN-supported Principles for Responsible Investment since 2007 the Investment Manager releases its first ESG report in 2020 and is fully supportive of the UK Stewardship Code.

 

 

Hélène Ploix

Chairman

25 February 2020

 

 

Investment Manager's Review

 

Investment Environment

In 2019 the Fund gained 23.3% in sterling terms net of fees. This performance was better than that of the MSCI EM (TR) Index, which returned 14.3%. We would like to put this in a longer-term context and highlight the elements of continuity that produced it: our investment process has been consistent. And over this past year, markets have rewarded our consistent approach and our diversified portfolio of quality businesses run by aligned management teams.

 

Performance was particularly strong in China, where our investments, mostly in good quality, entrepreneurial, consumer-oriented businesses returned 45%, or about 20 percentage points more than the country benchmark. Brazil was another bright spot. Our investments, predominantly in niche businesses with high barriers to entry, were up 65% or about 40 percentage points more than the index. Further afield, our strategy of investing in early-stage consumer-oriented banks and avoiding excessive leverage continued to play out. Our financial investments rose 33%, while Emerging Market financials returned only 13% as big banks in markets with higher financial penetration didn't perform well.

 

In this environment, the Fund's NAV outperformed the Index over the six-month period, rising 4.5% versus an Index return of 3.1%.

 

Performance

In relative terms over the period, South Korea was the portfolio's most successful market, with gains from stock selection largely due to the search engine Naver (up 57% in GBP). At the start of the period Naver announced it was spinning-off its payments business to unlock further value and then its share price surged in November as a merger was agreed between its Japanese messaging service Line and Yahoo Japan. Stock selection was also the critical component in the other leading markets. In the weak South African market the largely non-domestic company Mediclinic gained 36% as it released an encouraging half-year trading update, while in Brazil there were notable returns from investment bank BTG Pactual (up 38%), software company Totvs (up 35%) and health care provider Intermédica (up 55%). The performance of OTP Bank (up 26%) in Hungary led to further gains while the absence of any investments in the weak Chile market and a low weighting in Saudi Arabia was also beneficial.

 

Despite good stock performance the large underweight position in the strong IT-dominated Taiwanese market was costly for the portfolio. Portfolio holdings in the frontier markets of Nigeria and Vietnam underperformed largely due to Dangote Cement (down 26%) and Vinamilk (down 6%) respectively. In Russia, despite the outperformance of Yandex (up 10%), which was boosted by positive news regarding a potential cap on foreign ownership of Russian internet companies, value was lost as retailer Magnit fell by 11% and the large energy SOEs, which are not part of the portfolio, continued to outperform.

 

Substantial gains from stock selection came in both the financials and communication services sectors. In financials, BTG Pactual and OTP Bank were supported by Commercial International Bank (Egypt, up 13%), while in communication services the performance of Naver and Yandex was notable along with Chinese gaming company Netease, which rose by 18%. These gains were partially offset by losses from being underweight in the strong IT sector as Taiwanese tech hardware companies performed strongly, although Chinese optical components and products manufacturer, Sunny Optical, did add value with a 61% gain. Further losses came in the consumer sectors where baijiu producer Jiangsu Yanghe (down 14%), Heineken (down 9%) and the aforementioned Vinamilk were notable.

 

Relative Performance Attribution in GBP - 6 Months to December 2019

 

GEMF vs. MSCI Emerging Markets (TR) Index

 

Top 10 Stock Contributors	%		Top 10 Stock Detractors	%
Naver (South Korea)	0.69		TSMC (Taiwan)	(0.39)
Mediclinic (South Africa)	0.44		Jiangsu Yanghe Brewery (China)	(0.30)
Sunny Optical (China)	0.32		AIA (China)	(0.29)
New Oriental Education (China)	0.32		CSPC Pharmaceutical (China)	(0.19)
OTP Bank (Hungary)	0.28		Heineken (Netherlands)	(0.19)
BTG Pactual (Brazil)	0.20		DP World (United Arab Emirates)	(0.18)
Totvs (Brazil)	0.19		Vinamilk (Vietnam)	(0.17)
Yandex (Russia)	0.16		Universal Robina (Philippines)	(0.16)
Delivery Hero (Germany)	0.14		Prosus (Netherlands)	(0.16)
Wuliangye Yibin (China)	0.13		Richemont (Switzerland)	(0.16)

 

 

			Top 5 Country			Top 5 Country
Sector Contributions	%		Contributors	%		Detractors	%
Financials	1.55		South Korea	1.09		Taiwan	(0.94)
Communication Services	1.17		South Africa	0.77		Nigeria	(0.25)
Materials	0.30		Brazil	0.43		Russia	(0.21)
Health Care	0.25		Saudi Arabia	0.35		Philippines	(0.18)
Consumer Discretionary	0.22		Hungary	0.29		Vietnam	(0.11)
Utilities	0.19
Energy	0.13
Industrials	(0.02)
Investment Companies	(0.11)
Real Estate	(0.17)
Consumer Staples	(0.57)

 

Source: Calculated by FactSet

 

Portfolio activity

Although China accounted for a significant portion of purchases and sales during the period the net overall effect of trading activity there was close to zero. In terms of purchase activity there were two new holdings: property developer Greentown Service and leading pharmaceutical company CSPC. There were additions to baijiu producer Jiangsu Yanghe and WH Group, while the switch from Naspers to Tencent continued as the relative discount remained attractive, with additional investment in Tencent coming from the proceeds of the reduction in Prosus, a Naspers spin-off which consists of Naspers' internet interests outside of South Africa including, among others, Tencent, mail.ru and Delivery Hero. The sales activity saw a reduction in insurer AIA due to concerns over the impact of the recent protests in Hong Kong. The positions in internet companies 58.com and Momo were trimmed and New Oriental, Wuliangye and Sunny Optical in particular were reduced following share price strength. Three positions were sold from the portfolio, AAC Technologies, Fuyao Glass and Weibo, although for the latter the portfolio retains a position in Sina, its majority shareholder.

 

India saw significant purchase activity. Exposure to the Indian IT services sector was increased via Infosys and TCS as they became relatively more attractive, while advantage was also taken of price weakness in Axis Bank, prior to the corporate tax cut, and additions were made to the recently introduced position in electrical goods company Crompton was built upon. Elsewhere, a number of positions from the consumer sector saw increases as Heineken and CP All (Thailand) were increased following share price weakness and Kangwon Land (South Korea) was also added too, and a number of banks were topped up notably Credicorp (Peru), OTP Bank (Hungary) and Commercial International Bank (Egypt). A further three new holdings were introduced during the period: browser and online advertising company Opera (Nigeria), Mexican toll road operator Pinfra and food delivery group Delivery Hero. After initially purchasing Delivery Hero earlier in 2019 the management of its Saudi business were unexpectedly fired. The investment case was subsequently reassessed and the miniscule exposure was sold. Since then the company has addressed the Saudi issues, conviction has increased and the holding was reintroduced to the portfolio in November.

 

There was notable sales activity In South Korea. Naver was reduced following its strong performance, Samsung Electronics was trimmed as its share price charged ever higher, while the sale of Shinhan was completed and the smaller positions in Hanssem and E-Mart exited the portfolio. In Brazil, the positions in BTG Pactual and Totvs were scaled back following strong performance and Lojas Americanas was sold having significantly under-delivered on its guidance. The position in Garanti Bank (Turkey) was sold, with 70% of the holding reduced during the third quarter following a 6-week 50% share price recovery, increased political uncertainty and continuing macro-economic risks. Other positions to be trimmed were retailers Jeronimo Martins (Poland) and Magnit (Russia), while First Quantum minerals was sold as the share price had risen sharply since reinvestment in August and the range of outcomes was no longer in our favour. At the end of the period there were 108 holdings in the portfolio, with 6 new positions and 10 sold.

 

Outlook

Looking ahead to 2020 and beyond, we are confident in the outlook for two reasons. Some significant parts of the portfolio, including some smaller capitalisation and frontier market companies, have not yet had their time in the sun and are showing compelling IRRs. We have also been disciplined about reducing positions when valuations became less attractive, which has been the biggest driver of our unusually high 34% turnover in 2019.

 

Our database of investments has a median forecast five-year IRR at about 11% annualised in USD, reflecting the good value still on offer in Emerging Markets. It is possible that the investment environment may become more conducive to our strategy compared with the period 2014-2019. Our diversified portfolio typically performs better when small and mid-capitalisation stocks do well. But in Emerging Markets every year from 2014 to 2019 larger capitalisation stocks outperformed. This is reflected in the 15% cumulative outperformance of the capitalisation-weighted MSCI EM Index versus the equal-weighted index. In a historical context, this small cap underperformance is exceptional.

 

Since the Fund's inception in 1989 we have generated 11.6% annualised returns in GBP, net of fees. This is above the MSCI EM benchmark, which has returned 9.8%, and the MSCI World Index, which has returned 7.4%. We remain very focused on our single product and believe our team remains globally competitive. Our four pillars of success remain in place: (1) sophisticated clients; (2) our aligned structure as an owner-managed single-strategy partnership; (3) our long-term investment time horizon and rigorous fundamental research process; and (4) our diverse team of skilled and experienced professionals.

Genesis Investment Management, LLP

February 2020

 

 

Directors' Report

 

Financial Performance

 

Results and Dividends

The total profit for the six months ended 31 December 2019 amounted to $113,484,000 compared to a loss of $151,063,000 for the six months ended 31 December 2018.

 

A dividend of 19.0 US cents per Participating Preference Share in respect of the 30 June 2019 results (2018: 19.0 US cents) was approved by Shareholders at the AGM and paid on 13 December 2019.

 

Capital Values

At 31 December 2019, the value of Equity Shareholders' Funds was $1,395,665,000 (30 June 2019: $1,305,260,000) and the Net Asset Value per Participating Preference Share was $11.49 (30 June 2019: $10.75), or in sterling terms, £8.67 (30 June 2019: £8.44).

 

Principal Risks and Uncertainties

The main risks to the value of its assets arising from the Fund's investment in financial instruments (principally equity securities) are unanticipated adverse changes in market prices and foreign currency exchange rates and an absence of liquidity. The Board reviews and agrees with the Investment Manager's policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the beginning of the period to which these financial statements relate.

 

Volatility of emerging markets and market risk

The economies, the currencies and the financial markets of a number of developing countries in which the Fund invests may be extremely volatile. To manage the risks posed by adverse price fluctuations the Fund's investments are geographically diversified, and will continue to be so. The exposure to any one company or group (other than an investment company, unit trust or mutual fund) is unlikely to exceed 5% of the Fund's net assets at the time the investment is made. The Articles of Incorporation place a limit of 10% for securities issued by one company but the Board use 5% for monitoring purposes.

 

Foreign currency exposure

The Fund's assets will be invested in securities of companies in various countries and income will be received by the Fund in a variety of currencies. However, the Fund will compute its net asset value and distribution in US dollars. The value of the assets of the Fund as measured in US dollars may be affected favourably or unfavourably by fluctuations in currency rates and exchange control regulations. Further, the Fund may incur costs in connection with conversions between various currencies. The Fund has opted not to engage in any active management of foreign currency risk, and therefore all its open foreign exchange positions are typically unhedged.

 

Lack of liquidity

Trading volumes on the stock exchanges of developing countries can be substantially less than in the leading stock markets of the developed world and trading may even be temporarily suspended during certain periods. Liquidity can also be negatively impacted by temporary capital controls in certain markets. A lower level of liquidity can exaggerate the fluctuations in the value of investments described previously. The restrictions on concentration and the diversification requirements detailed above also serve normally to protect the overall value of the Fund from the risks created by the lower level of liquidity in the markets in which the Fund operates.

 

Custody risk and cyber security

The Fund is also exposed to operational risks such as custody risk and cyber security breaches. Custody risk is the risk of loss of securities held in custody occasioned by the insolvency or negligence of the Custodian. Although an appropriate legal framework is in place that eliminates the risk of loss of value of the securities held by the custodian, in the event of its failure, the ability of the Fund to transfer the securities might be temporarily impaired. The day-to-day management of these risks is carried out by the Investment Manager under policies approved by the Board.

 

The risk represented by breaches in cyber security is carefully monitored by the Investment Manager, Custodian and Administrator with appropriately designed and tested controls.

 

Investment policy and process

Inappropriate investment policies and processes may result in under performance against the Fund's peer group. The Board manages these risks by ensuring a diversification of investments and regularly reviewing the portfolio asset allocation and investment process. In addition, certain investment restrictions have been set and these are monitored as appropriate.

 

Investment strategy and share price movements

The objective of the Fund is to achieve long term capital growth and it is exposed to the effect of variations in the price of its investments. A fall in the value of its portfolio will have an adverse effect on shareholders' funds. The Board reviews the Fund's investment strategy and the risk of adverse share price movements at its Board meetings taking into account the economic climate, market conditions and other factors that may have an effect on the sectors in which the Fund invests. There can be no assurances that depreciation in the value of the Fund's investments will not occur but the Board seeks to reduce this risk.

 

Discount to net asset value

A discount in the price at which the Fund's shares trade to net asset value would mean that shareholders would be unable to realise the true underlying value of their investment. As a means of controlling the discount to net asset value the Board has the ability to buy back shares. The Board reviews the Fund's discount to net asset value on a regular basis.

 

Credit and counterparty risk

The failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the Fund suffering a loss.

 

Operational

Failure of the core accounting systems, or a disastrous disruption to the Administrator's or Investment Manager's business, could lead to an inability to provide accurate reporting and monitoring.

 

Loss of Key Personnel

The day-to-day management of the Fund has been delegated to the Investment Manager. Loss of the Investment Manager's key employees could affect investment returns. The Board is aware that GIM, LLP recognises the importance of its employees to the success of its business. Its remuneration policy is designed to be market competitive in order to motivate and retain staff and succession planning is regularly reviewed.

 

Investment Manager

In the opinion of the Directors, in order to achieve the investment objective of the Fund, and having taken into consideration the performance of the Fund, the continuing appointment of the Investment Manager is in the interests of the shareholders as a whole.

 

A more detailed commentary of important events that have occurred during the period and their impact on these financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year are contained in the Investment Manager's Review.

 

Directors

The following directors served throughout the period under review: Hélène Ploix, Sujit Banerji, Dr Simon Colson, Russell Edey, Saffet Karpat and Katherine Tsang.

 

As at 31 December 2019, Participating Preference Shares were held by Sujit Banerji (10,000), Saffet Karpat (20,000) and Hélène Ploix (15,000).

 

Related Party Transactions

During the reporting period, there were no transactions with related parties which materially affected the financial position or performance of the Fund. However, details of related party transactions are contained in the Annual Financial Report for the year ended 30 June 2019 which should be read in conjunction with this Half Year Report.

 

Going Concern

The Directors believe that the Fund has adequate resources to continue in operational existence for twelve months from the approval date of the Half Year Report. This is based on various factors including the Fund's forecast expenditure, its ability to meet its current liabilities, the highly liquid nature of its assets, its market price volatility and its closed-ended legal structure. For these reasons, the Directors continue to adopt the going concern basis in preparing these Financial Statements.

 

 

Statement of Directors' Responsibilities

The Directors with Chapter 4 of the Disclosure and Transparency Rules the Directors confirm that to the best of their knowledge:

 

·        the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' and gives a true and fair view of the assets, liabilities, financial position and return of the Fund;

 

·        the Half Year Report includes a fair review of important events that have occurred during the first six months of the financial year, their impact on the condensed financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

 

·        the Half Year Report includes a fair review of the information concerning related party transactions.

 

Approved by the Board

 

Hélène Ploix	Russell Edey
Chairman	Director
	25 February 2020