NEWS RELEASE
21 November 2012
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Worldwide Healthcare Trust PLC today announces its half year
results for the six months ended 30
September 2012.
Performance
Six months One year
to 30 to 31
September March
2012 2012
Share price (total
return)# +10.7% +18.2%
Net asset value per share
(total return)# +9.3% +14.4%
Benchmark index (total
return)* +7.4% +13.4%
30 Six
September 31 March months %
2012 2012 Change
Shareholders' funds £422.0m £391.8m +7.7
Net asset value per share
- diluted (dilution for
subscription shares) 919.0p 871.0p +5.5
Share price 860.5p 795.0p +8.2
Subscription share price 179.0p 133.5p +34.1
Discount of share price to
diluted net asset value
per share 6.4% 8.7% -
Benchmark index* 96.80 90.14 +7.4
Gearing (net basis) 3.0% 16.4% -
Ongoing charges (including
performance fees
crystalised during the
period) 1.1% 1.3% -
#Source - Morningstar. (Net asset value diluted for subscription
shares and treasury shares).
*With effect from 1 October 2010,
the performance of the Company is measured against the MSCI World
Health Care Index on a net total return, sterling adjusted basis.
Prior to this date, performance was measured against the Datastream
World Pharmaceutical & Biotechnology Index (total return,
sterling adjusted). Historic data therefore consists of a blended
figure containing both indices.
Attached:
Chairman's Statement
Review of Investments
Contribution by Investment - Excluding Options
Income Statement
Reconciliation of Movements in Shareholders' Funds
Balance Sheet
Cash Flow Statement
Notes to the Financial Statements
For further information please contact:
Martin Smith, Worldwide
Healthcare Trust PLC 020 3 008 4913
Mark Pope, Frostrow Capital LLP
020 3 008 4913
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Chairman's Statement
Performance
I am pleased to report that the Company's net asset value total
return of +9.3% comfortably outperformed the benchmark with the Company's
share price performing even better, with a total return of +10.7%, over the
same period. Healthcare stocks again demonstrated their defensive qualities
during the period with the sector significantly outperforming the wider
market. The MSCI World Index (measured in sterling terms on a total return
basis) rose by 0.6% compared to a rise of 7.4% in the Company's benchmark, the
MSCI World Healthcare Index (measured in sterling terms on a total return
basis). The average discount of the Company's share price to the diluted net
asset value per share during the period was 6.6%, broadly in line with the
Board's stated target.
Further information on investment performance and the outlook
for the Company is given in the Review of Investments.
Capital
The Board continues to maintain its discount policy where it seeks
to ensure the discount to the net asset value per share at which the Company's
shares are quoted on the London Stock Exchange is no greater than 6% over the
long-term, subject to adverse market conditions. In line with this policy
2,411,340 shares were repurchased for treasury during the period and to the
date of this report, at a cost of £19.2m (including expenses).
On 18 July 2012, a total of
2,941,518 shares held in treasury were cancelled. The Board has
confirmed that any shares held in treasury will be cancelled on or
as soon as practicable following the Annual General Meeting each
year.
During the period and to the date of this report a total of
4,671,640 subscription shares were exercised at an exercise price of 638p per
share and 9,946 at an exercise price of 699p per share raising a total of
c.£29.9m of additional funds for the Company. The next subscription date will
be 31 January 2013 at a subscription price of 699p per share. The subscription
shares will expire on 31 July 2014.
Revenue and Dividends
The revenue return for the period was £3,784,000 (six months
ended 30 September 2011: return of
£3,314,000).
As mentioned in my statement at the yearend, the Board has decided that the
Company will now declare two interim dividends per year rather than one. I am
therefore pleased to report that a first interim dividend of 7.0p per share,
for the year to 31 March 2013, has been declared which will be payable on 11
January 2013 to ordinary shareholders on the register of members on 14
December 2012. The associated ex-dividend date will be 12 December 2012.
The Board reminds shareholders that it remains the Company's policy
to pursue capital growth for shareholders and to pay dividends to the extent
required to maintain investment trust status. The second interim dividend for
the year to 31 March 2013 is expected to be announced in March 2013.
The Board
I am delighted to welcome Doug
McCutcheon to the Board. Based in Canada, and a former head of UBS Healthcare
Investment Banking for Europe, the
Middle East and Africa, he has over 25 years' experience as an
investment banker, 16 of which were spent specialising in the
healthcare sector.
Outlook
At a time when there are concerns regarding the outlook for world
stock markets, including the loss of economic momentum in the U.S., the
continued eurozone debt crisis and the risk of a continuing slow-down within
the Chinese economy, the attributes of the healthcare sector, which include
high quality, defensive, and in some cases dividend yielding stocks, continue
to offer particular appeal to investors.
Our Investment Manager maintains its belief that the outlook for
the healthcare sector is positive due to the underlying demographics of the
sector combined with continued levels of merger and acquisition activity and
new product development in an industry-friendly regulatory environment in the
U.S.
Your Board believes that we are well positioned to take
advantage of this encouraging outlook for healthcare and that the
long term investor in our sector will continue to be well
rewarded.
Martin Smith Chairman
21 November 2012
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Review of Investments
Performance
For the period of 1 April to 30 September 2012, global equity
markets demonstrated polarised behaviour with a significant and sharp downward
move in April and in particular May, before rebounding in the second half of
the period. This resulted in a return for the period of 0.6% as measured by
the MSCI World Index (in sterling terms on a total return basis).
Healthcare stocks showed their defensive qualities early in the
period as their initial decline was more modest than the broader markets.
Interestingly, despite a bounce in the markets, the second half of the period
showed superior gains for healthcare stocks, a testament to the positive
fundamentals of the group. The Company's benchmark, the MSCI World Healthcare
Index (measured in sterling terms on a total return basis) posted a total
return of +7.4% in the six month period ended 30 September 2012.
The Company outperformed both the broader market and the healthcare
specific index, with a share price total return of +10.7% and a net asset
value total return of +9.3%. Key to outperformance in the period was primarily
stock picking, as many sub-sectors advanced in the six months. Important
contributions came from (in descending order) biotechnology, large
capitalisation pharmaceuticals, global generic drug makers, Japanese
pharmaceuticals, and healthcare service providers. Medical device stocks, life
science tool stocks, and holdings in the emerging markets did not meaningfully
contribute. Two sub-sectors were notable detractors, health maintenance
organisations (HMO's) and specialty pharmaceuticals.
Four of the top five contributors in the six month period have
something in common: increasing expectations for new drug approval emanating
from positive clinical data or affirmative regulatory action. Onyx
Pharmaceuticals, a biotechnology company based in San Francisco, California,
was the top contributor in the period. The company received two drug approvals
to help bolster their oncology franchise. The first was Kyprolis (carfilzomib)
for multiple myeloma. Because the U.S. Food and Drug Administration (FDA) had
previously expressed reluctance to consider the drug due to the design of the
clinical trials, the positive FDA advisory panel vote and the ultimate
approval came as a surprise to the market. We expect Kyprolis to have a strong
launch into the refractory myeloma market, with positive clinical trial data
in earlier line use coming next year. Additionally, the company, with partner
Bayer AG, received approval for Stivarga (regorafenib), a drug for refractory
metastatic colorectal cancer. With the company's flagship product Nexavar
(sorafenib) continuing to grow in approved indications (hepatocellular
carcinoma and renal cell carcinoma), Kyprolis as a fully owned asset, and a
royalty interest in Stivarga, we believe Onyx is also an attractive
acquisition target.
Gilead Sciences, was another top contributor in the period. The
company has positioned itself as a global category leader in two infectious
disease areas: human immunodeficiency virus (HIV) and hepatitis C virus (HCV).
The latter commenced with their acquisition of Pharmasset in January 2012 and
was confirmed with positive clinical results in HCV that exceeded
expectations. Competition in the treatment of HCV diminished when a
competitor's product was discontinued due to toxicity. We expect Gilead to
come to market with a next wave of HCV therapies based on an all-oral regimen
of drugs that for most patients will be a cure. In HIV, the company received
approval for Stribild (elvitegravir, cobicistat, emtricitabine, and
tenofovir), the company's novel "quad" pill. We expect the drug to be a
dominant player in maintenance therapy for HIV. We continue to hold the stock
because we believe the Stribild launch will go well and additional HCV data in
November will be strong.
Global pharmaceutical giant Merck posted strong gains this period.
In part, the stock rose due to its laggard status in 2011 in which the company
suffered a setback in its pipeline. However, enthusiasm over Merck's late
stage pipeline was rekindled in 2012. With targets in osteoporosis, insomnia,
cardiovascular, oncology, diabetes, and vaccines, the company is entering a
new product phase that it has not seen in over a decade. Current revenues and
earnings growth are underpinned by the mega-blockbuster diabetes treatment,
Januvia (sitagliptin), a drug approaching
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Review of Investments (continued)
U.S.$6 billion in global sales,
still growing double digits, and likely to be the next
U.S.$10 billion seller.
Express Scripts is a full service pharmacy benefits management
(PBM) and managed care company based in St. Louis, Missouri. The shares
rebounded in the period for a host of reasons, perhaps most importantly was
closing the acquisition of Medco Health Solutions (a rival PBM) with its
attendant U.S.$1 billion plus of operating synergies. Express Scripts also
experienced a strong selling season for 2013 contracts, in addition it
resolved its dispute with Walgreens, one of largest dispensing pharmacy chains
in the United States. The potential increase in generic usage in 2013, in
particular multisource generics (which favourably impact margins), also
created a tailwind for the stock. There could be potentially greater upside in
earnings per share if management chooses to start buying back shares in 2013.
Another new product story rounded out the top contributors this
period. The share price of Swiss based bio-pharmaceutical company, Actelion
increased due to positive phase III data for macitentan for pulmonary arterial
hypertension (PAH) which has reinvigorated the company. Actelion's stock had
previously declined due to concerns about the upcoming patent expiry of
Tracleer (bosentan), the company's first generation drug for PAH. The success
of macitentan extends the company's PAH franchise for another decade. We
expect the positive momentum to continue.
Detractors in the six month period were characterised two-fold:
stock selection and a sub-sector that performed poorly. Dendreon was the
single largest negative contributor. The launch of their novel immunotherapy
treatment for prostate cancer, Provenge (sipuleucel-T), has disappointed and
the company revised down guidance multiples. Adding to the woes, was the
earlier (and better than expected) data for a competing product, Zytiga
(abiraterone), from Johnson & Johnson. The market capitalisation of the
company was cut by more than 50% during the period.
The largest collective loss in the period came from the Company's
exposure to HMO's. Despite extremely low valuations, the sub-sector fell as
earnings came under unexpected pressure due to greater pricing competition and
a cost trend that suddenly was no longer decelerating. Shares were also
volatile into and out of the Supreme Court decision that upheld healthcare
reform. Uncertainty over this event was high and some expected a moderation of
some of its tenets. A "sell on the news" phenomenon impacted the sector.
Overall, share prices of HMO's held by the Company, including Aetna,
Wellpoint, and Humana, all fell in excess of 20% in the period.
Another stock specific issue that negatively impacted performance
was the specialty pharmaceutical company, Questcor Pharmaceuticals. In
September, a broker's "short report" highlighting a reimbursement policy
change at an insurance carrier for its key product Acthar (adrenocorticotropin
), triggered a sharp sell-off. The move was exacerbated only days later with
the company's disclosure of a government investigation into marketing
practices for Acthar. The share price dropped more than 60% altogether.
Although a sell-off of this magnitude seems unwarranted, we have exited our
Questcor position as the stock no longer trades on fundamentals.
Sector Developments
Politics continued to play a major theme in 2012. In June, the
Supreme Court upheld the constitutionality of President Obama's Affordable
Healthcare Act (ACA). Readers may recall that some ACA pundits argued that
fining individuals for failing to buy insurance was not within the scope of
Congress's taxing powers and thus unconstitutional. The narrow court decision
upheld the law. While we believe this to be the ultimate outcome, there was a
clear lack of consensus heading into the decision. This was an important
overhang for healthcare sector that was removed.
The focus in November clearly swung to the U.S. Presidential
election. Despite a late run in the polls by Governor Mitt Romney, President
Barack Obama was re-elected. While the popular vote was extremely close -
within 2% - President Obama ran away with the electoral votes by a wide margin
- nearly 20%. Importantly, the Republican Party maintained control of the
House of Representatives while the Democrats maintained control of the Senate,
actually increasing their number of seats. The net result was status quo, and
we expect its impact to be minor for both the biotechnology
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Review of Investments (continued)
and pharmaceutical industries. As for managed care, with ACA now
a certainty, we look forward to the implementation details to be
released in 2013. With near term uncertainty, the sector could be
volatile.
For the past two years, concerns over drug pricing in Europe has
been on the rise. Undoubtedly, the economic crises across that continent have
negatively impacted revenues and earnings for pharmaceutical companies exposed
to the region. However, investor expectations were appropriately set and the
impact has been in-line or better than expected. Thus, with only a few
exceptions, global and European pharmaceutical company share prices have not
suffered in response. Of course, our exposure to U.S. biotechnology companies
is mostly immune to this risk.
Specifically on the FDA and regulatory activities, we believe the
recent trend continues to be industry-friendly. While difficult to paint with
a broad brush, evidence of this observation outweighs the contrary. Cases in
point include Onyx (Kyprolis and Stivarga), Medivation (Xtandi), and Novartis
(Affinitor) who all received approval for their drugs much earlier than
expected in each case. We would not expect this to change materially post the
election. Thus, we expect this important tailwind to continue into the
foreseeable future.
Additional statistics on FDA approvals are positive. For the
first 9 months of 2012, the FDA has approved 24 small molecule new
chemical entities. This number already equals the number of
approvals for all of 2011. A similar number of biologics have been
approved year-to-date (3 vs. 4).
Strategy Review
A recurring theme in healthcare is certainly merger & acquisition
(M&A) activity. The six month period bore witness to over 40 transactions
across the global healthcare sector. Many were noteworthy, such as the joint
acquisition of Amylin Pharmaceuticals by Bristol-Myers Squibb and AstraZeneca,
two companies already partnered in the treatment of diabetes. AstraZeneca also
conducted a bolt-on acquisition, Ardea Biosciences, obtaining a late stage
compound for the treatment of gout. Fellow U.K. based large capitalisation
pharmaceutical company, GlaxoSmithKline, acquired its biotechnology partner,
Human Genome Sciences. One newly emergent theme is the pick-up in emerging
market acquisitions, in particular South America. We have increased our
research efforts in that geography.
Of course, the Company's investment mandate remains widespread
and includes all areas of healthcare, from pharmaceuticals to
biotechnology and from medical devices to healthcare services. We
believe this expanded mandate has demonstrated less volatility and
additional opportunities to generate excess returns.
A critical focus for 2012 has been the significant acceleration of
clinical trial data read-outs across many therapeutic categories. Obesity,
Alzheimer's, cardiovascular, hepatitis C, oncology, diabetes, rheumatology,
and multiple sclerosis have all born witness to important advances in data or
regulatory activity. While the conclusion may seem elementary, there is no
more important fundamental underpinning value creation than new drugs in the
biotechnology and pharmaceutical sectors. We expect this to continue into the
second half of the Company's financial year.
2012 has represented an inflection point for the large
capitalisation pharmaceutical group as growth beyond this year should
accelerate, owing to the passing of the patent cliff and new product flow
across the industry. Valuations have increased but remain undemanding in a
historical context. Multiples could potentially expand appreciably in the near
term. Nevertheless, we look to remain selective with stock picking within the
group. Our focus remains on late stage pipeline catalysts and new product
flow.
In the specialty pharmaceutical sub-sector, we seek to buy
high-growth names with attractive, growth-adjusted valuations.
Alternatively, we seek to buy quality names with attractive
valuations.
For large capitalisation companies, we look for those that strive
to maintain above average growth profiles and strong fundamentals yet
reasonable valuations. For small and mid-capitalisation stocks, we are
focusing on "hot" therapeutic classes (HCV, 2012 has largely been a peak year
for U.S. based generic companies, so diversification could become increasingly
important for growth
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Review of Investments (continued)
in 2013 and beyond. Thus, in the U.S, the focus is on
small/mid-sized generic players with emerging branded franchises. In Japan,
the generic market continues its robust growth and secular long opportunities
remain. In India, potentially attractive companies with geographic and product
diversification are preferred.
The medical device industry has historically underperformed due
to multi-year headwinds. Innovation has been incremental,
preventing the ability to command price increases. Weak utilisation
trends have limited volumes. Thus, we remain cautious on the
outlook here.
We also remain cautious on managed care at the moment.
Fundamentals and valuations remain attractive and the Supreme Court
ruling has removed a critical overhang. Post the election, the
focus will shift to long term themes like the post-reform
environment, health insurance exchanges, Medicaid expansion, and
dual eligible opportunities.
The life sciences tools and diagnostics sectors are also exposed to
the U.S. Presidential election and the ensuing legislative outcomes. The
re-election of President Obama will likely be read positively by life sciences
tools investors as expectation for a rollback of sequestration, specifically
as it relates to the pending budget cuts in the NIH (National Institute of
Health), would likely expand valuation multiples for the sector. Nonetheless,
both parties have recently shown signs to resolve legislative differences in
order to repeal the pending sequestration in 2013.
Diagnostics remain a sector driven by new product cycles and
catalysts and is less exposed to the concerning macroeconomic outlook of both
U.S. and Europe. Outside of catalysts and product cycles, we expect 2013 to be
a buoyant year for M&A in the diagnostics sector as larger conglomerates
continue to be acquisitive in this fast growing sector.
Samuel D. Isaly
OrbiMed Capital LLC Investment Manager
21 November 2012
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Contribution by Investment - Excluding Derivatives
Top five contributors to and detractors from net asset value
performance over 6 months to 30 September
2012
Contribution for Contribution
the six months to per
30 September 2012 share
(p)*
Top Five Contributors £'000
Onyx Pharmaceuticals 7,259 16.40
Gilead Sciences 4,621 10.44
Merck & Co 3,363 7.60
Express Scripts 2,598 5.87
Actelion 2,423 5.48
20,264 45.79
Top Five Detractors
Dendreon (Including
Dendreon 4.75% convertible
bond) (3,201) (7.23)
Wellpoint (2,323) (5.25)
Aetna (1,918) (4.33)
Humana (1,843) (4.16)
Questcor (1,750) (3.96)
(11,035) (24.93)
*based on the weighted average number of shares in issue during
the six months ended 30 September
2012 (44,257,027)
Portfolio
as at 30 September 2012
Market % of
Investments Country value £'000 investments
Roche Switzerland 37,911 8.4
Merck & Co. USA 23,623 5.2
Pfizer USA 20,074 4.4
Sanofi-Aventis France 18,502 4.1
Gilead Sciences USA 18,071 4.0
Abbott Laboratories USA 17,912 4.0
Mitsubishi Tanabe Japan 16,648 3.7
Pharma
Onyx USA 11,512 2.5
Pharmaceuticals
Express Scripts USA 10,433 2.3
Bristol-Myers USA 9,919 2.2
Squibb
Top 10 Investments 184,605 40.8
HCA USA 9,807 2.2
GlaxoSmithKline UK 9,778 2.2
Life Technologies USA 9,075 2.0
Watson USA 8,332 1.8
Pharmaceuticals
Biogen Idec USA 8,130 1.8
Astellas Pharma Japan 8,028 1.8
Novartis Switzerland 7,964 1.8
Incyte Corp+ USA 7,803 1.7
Sawai Japan 7,572 1.7
Pharmaceutical
Towa Pharmaceutical Japan 7,465 1.7
Top 20 Investments 268,559 59.5
Ono Pharmaceutical Japan 7,463 1.7
Wellpoint USA 7,273 1.6
Illumina USA 7,165 1.6
Warner Chilcott Ireland 6,271 1.4
Actelion Switzerland 6,242 1.4
Shandong Weigao China 6,163 1.4
Group
Nichi-Iko Japan 6,052 1.3
Pharmaceutical
UnitedHealth USA 5,941 1.3
Zimmer USA 5,441 1.2
Aetna USA 4,894 1.1
Top 30 Investments 331,464 73.5
+ includes Incyte 4.75% 01/10/15
(Conv) equating to 1.5% of investments
Λ includes Dendreon 2.875% 15/01/16 (Conv) equating to 0.6% of investments #
includes Volcano 2.875% 01/09/15
(Conv) equating to 0.2% of investments
Portfolio (continued)
as at 30 September 2012
Market % of
Investments Country value £'000 investments
Orasure Technologies USA 4,885 1.1
Fluidigm USA 4,666 1.0
Affymax USA 4,565 1.0
Biosensors International 4,541 1.0
Singapore
Humana USA 4,501 1.0
Allergan USA 4,480 1.0
Dendreon Λ USA 4,393 1.0
Volcano # USA 4,393 1.0
Baxter International USA 4,328 1.0
Exact Sciences USA 4,258 0.9
Top 40 Investments 376,474 83.5
BioMarin Pharmaceutical USA 4,192 0.9
Impax Laboratories USA 4,178 0.9
VIVUS USA 4,009 0.9
NPS Pharmaceuticals USA 3,426 0.8
China Shineway Pharmaceutical 2,966 0.7
China
3SBio China 2,927 0.6
Elan 8.75% 15/10/16 Ireland 2,688 0.6
Affymetrix 4% 01/07/19 USA 2,482 0.5
Sequenom USA 2,372 0.5
Mako USA 2,331 0.5
Top 50 Investments 408,045 90.4
Given Imaging Israel 2,029 0.4
Medivation USA 1,942 0.4
Neurocrine Biosciences USA 1,937 0.4
Lyrica Royalty 11% 01/05/19 USA
1,849 0.4 Thermo Fisher Scientific USA
1,745 0.4
Immunogen USA 1,716 0.4
IHH Healthcare Malaysia 405 0.1
Total equities and fixed interest 419,668 92.9 investments
Options -(Put & Call)
416 0.1
Derivatives - (OTC Swaps) 31,720 7.0
Total investments 451,804 100.0
+ includes Incyte 4.75% 01/10/15
(Conv) equating to 1.5% of investments
Λ includes Dendreon 2.875% 15/01/16 (Conv) equating to 0.6% of investments #
includes Volcano 2.875% 01/09/15
(Conv) equating to 0.2% of investments
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Income Statement
for the six months ended 30 September
2012
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 September 2012 30 September 2011 31 March 2012
Revenue Capital Revenue Capital Revenue
Capital
Return Return Total Return Return Total Return Return Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses)
on investments
held at fair
value through
profit or loss - 25,817 25,817 - (6,980) (6,980) - 52,193 52,193
Exchange
losses on
currency
balances - (587) (587) - (2,164) (2,164) - (535) (535)
Income from
investments
held at fair
value through
profit or loss
(note 2) 4,696 - 4,696 4,274 - 4,274 11,653 - 11,653
Investment
management,
management and
performance
fees (note 3) (90) (1,568) (1,658) (78) (2,398) (2,476) (162) (5,953) (6,115)
Other expenses (312) - (312) (262) - (262) (548) - (548)
Net
return/(loss)
before finance
charges and
taxation 4,294 23,662 27,956 3,934 (11,542) (7,608) 10,943 45,705 56,648
Finance
charges (7) (130) (137) (9) (166) (175) (14) (272) (286)
Net
return/(loss)
before
taxation 4,287 23,532 27,819 3,925 (11,708) (7,783) 10,929 45,433 56,362
Taxation on
ordinary
activities (503) 47 (456) (611) 235 (376) (1,456) 406 (1,050)
Net
return/(loss)
after taxation 3,784 23,579 27,363 3,314 (11,473) (8,159) 9,473 45,839 55,312
Return/(loss)
per share -
basic (note 4) 8.6p 53.3p 61.9p 7.7p (26.6)p (18.9)p 21.8p 105.7p 127.5p
Return/(loss)
per share -
diluted (note
4) 8.5p 52.9p 61.4p 7.5p (25.9)p (18.4)p 21.4p
103.7p 125.1p
The "Total" column of this statement is the Income Statement of the Company.
The "Revenue" and "Capital" columns are supplementary to this and are prepared
under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from
continuing operations.
The Company has no recognised gains and losses other than those
shown above and therefore no separate statement of total recognised
gains and losses has been presented.
No operations were acquired or discontinued during the
period.
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Reconciliation of Movements in Shareholders' Funds
(Unaudited) Ordinary Subscription Share Capital Capital Revenue
Six months share share premium reserve redemption reserve Total
ended 30 capital capital account reserve
September 2012 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 10,997 71 186,300 174,230 7,068 13,131 391,797
2012
Net return from
ordinary
activities
after taxation - - - 23,579 - 3,784 27,363
Dividend paid
in respect of
year ended 31
March 2012 - - - - - (7,705) (7,705)
Subscription
shares
exercised for
ordinary shares 1,168 (47) 28,637 47 - - 29,805
Shares
purchased to be
held in
treasury and
treasury shares
cancelled (735) - - (19,238) 735 - (19,238)
At 30 September 11,430 24 214,937 178,618 7,803 9,210 422,022
2012
(Unaudited) Ordinary Subscription Share Capital Capital Revenue
Six months share share premium reserve redemption reserve Total
ended 30 capital capital account reserve
September 2011 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 10,875 82 181,395 135,319 6,978 10,132 344,781
2011
Net
(loss)/return
from ordinary
activities
after taxation - - - (11,473) - 3,314 (8,159)
Dividend paid
in respect of
year ended 31
March 2011 - - - - - (6,473) (6,473)
Subscription
shares
exercised for
ordinary shares 93 (4) 2,267 4 - - 2,360
Shares
purchased to be
held in
treasury and
treasury shares
cancelled (90) - - (174) 90 - (174)
At 30 September 10,878 78 183,662 123,676 7,068 6,973 332,335
2011
Ordinary Subscription Share Capital Capital Revenue
(Audited) share share premium reserve redemption reserve Total
Six months ended 30 capital capital account reserve
September 2011 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 2011 10,875 82 181,395 135,319 6,978 10,132 344,781
Net return from
ordinary
activities after
taxation - - - 45,839 - 9,473 55,312
Dividend paid in
respect of ended
31 March 2011 year - - - - - (6,474) (6,474)
Subscription
shares exercised
for ordinary
shares 212 (9) 5,199 9 - - 5,411
Shares purchased
to be held in
treasury and
treasury shares
cancelled (90) - - (6,939) 90 - (6,939)
Subscription (2) (294) 2 - - (294)
shares repurchased
for cancellation -
At 31 March 2012 10,997 71 186,300 174,230
7,068 13,131 391,797
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Balance Sheet
as at 30 September 2012
(Unaudited) (Unaudited) (Audited)
30 30 31
September September March
2012 2011 2012
£'000 £'000 £'000
Fixed assets
Investments held at fair
value through profit or
loss 419,668 380,978 454,301
Derivative - OTC swaps 31,720 7,141 13,691
451,388 388,119 467,992
Current assets
Debtors 3,587 6,041 2,512
Derivative - financial 416 - 940
instruments
4,003 6,041 3,452
Current liabilities
Creditors: amounts falling (20,845) (10,231) (15,288)
due within one year
Derivative - financial - (424) -
instruments
Bank overdraft (12,524) (51,170) (64,359)
(33,369) (61,825) (79,647)
Net current liabilities (29,366) (55,784) (76,195)
Total net assets 422,022 332,335 391,797
Capital and reserves
Ordinary share capital 11,430 10,878 10,997
Subscription share capital 24 78 71
Share premium account 214,937 183,662 186,300
Capital reserve 178,618 123,676 174,230
Capital redemption reserve 7,803 7,068 7,068
Revenue reserve 9,210 6,973 13,131
Total shareholders' funds 422,022 332,335 391,797
Net asset value per share 930.8p 764.2p 909.4p
- basic (note 5)
Net asset value per share
- diluted for subscription
shares (note 5) 919.0p 745.0p 871.0p
Net asset value per share
- fully diluted for
subscription shares and
treasury shares (note 5) 918.5p 745.0p 869.7p
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Cash Flow Statement
for the six months ended 30 September
2012
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2012 2011 2012
£'000 £'000 £'000
Net cash inflow/(outflow)
from operating activities 1,628 (654) 4,112
Servicing of finance
Interest paid (137) (175) (286)
Taxation
Taxation suffered - (69) (422)
Financial investment
Purchases of investments (169,977) (171,355) (301,803)
and derivatives
Sales of investments and 218,046 173,419 288,756
derivatives
Net cash inflow/(outflow)
from financial investment 48,069 2,064 (13,047)
Equity dividends paid (7,705) (6,473) (6,474)
Net cash inflow/(outflow) 41,855 (5,307) (16,117)
before financing
Financing
Repurchase of own shares (19,238) (174) (7,233)
Subscription shares 29,805 2,360 5,411
exercised for ordinary
shares
Net cash inflow/(outflow) 10,567 2,186 (1,822)
from financing
Increase/(decrease) in 52,422 (3,121) (17,939)
cash
Reconciliation of net cash
flow movements to net debt
Increase/(decrease) in net
debt resulting from cash
flows 52,422 (3,121) (17,939)
Exchange movements (587) (2,164) (535)
Movement in net debt in 51,835 (5,285) (18,474)
the period
Net debt at beginning of (64,359) (45,885) (45,885)
period
Net debt at period end (12,524) (51,170) (64,359)
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Notes to the Financial Statements
1. ACCOUNTING POLICIES
The condensed financial statements have been prepared under the
historical cost convention, modified to include the valuation of investments
at fair value and in accordance with United Kingdom Generally Accepted
Accounting Practice and with the Statement of Recommended Practice `Financial
Statements of Investment Trust Companies and Venture Capital Trusts' dated
January 2009. All of the Company's operations are of a continuing nature.
The same accounting policies used for the year ended 31 March 2012 have been
applied.
2. INCOME
(Unaudited) (Unaudited) (Audited)
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2012 2011 2012
£'000 £'000 £'000
Investment income 4,694 4,273 11,651
Interest
receivable 2 1 2
Total 4,696 4,274 11,653
3. INVESTMENT MANAGEMENT, MANAGEMENT AND PERFORMANCE FEES
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 September 2012 30 September 2011 31 March 2012
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment
management fee 66 1,267 1,333 57 1,081 1,138 119 2,251 2,370
Management fee 24 450 474 21 408 429 43 817 860
Performance
fee (written
back)/charged
in the
period/year* - (149) (149) - 909 909 - 2,885 2,885
90 1,568 1,658 78 2,398 2,476 162 5,953 6,115
*In accordance with the performance fee arrangements described
on page 21 of the 2012 annual report, a performance fee of
£1,452,000 was accrued at 30 September
2012 (2011: £nil).
During the period, £375,000 was paid which related to a
performance fee which crystallised and became payable at
30 June 2012.
4.RETURN/(LOSS) PER SHARE
(Unaudited) (Unaudited) (Audited)
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2012 2011 2012
£'000 £'000 £'000
The return/(loss) per
share is based on the
following figures:
Revenue return 3,784 3,314 9,473
Capital return/(loss) 23,579 (11,473) 45,839
Total return/(loss) 27,363 (8,159) 55,312
Weighted average
number of shares in
issue for the period -
basic 44,257,027 43,265,414 43,362,962
Revenue return per 8.6p 7.7p 21.8p
share
Capital return/(loss) 53.3p (26.6)p 105.7p
per share
Total return/(loss) 61.9p (18.9)p 127.5p
per share
Weighted average
number of shares in
issue for the period -
diluted 44,585,606 44,253,028 44,223,263
Revenue return per 8.5p 7.5p 21.4p
share
Capital return/(loss) 52.9p (25.9)p 103.7p
per share
Total return/(loss) 61.4p (18.4)p 125.1p
per share - diluted
WORLDWIDE HEALTHCARE TRUST PLC
Unaudited Results for the six months ended 30 September 2012
Notes to the Financial Statements (continued)
5. NET ASSET VALUE PER SHARE
The net asset value per share is based on the assets attributable
to equity shareholders of £422,022,000 (30 September 2011: £332,335,000: 31
March 2012: £391,797,000) and on the number of shares in issue at the period
end of 45,341,464 (excluding 378,408 shares held in treasury) (30 September
2011: 43,486,450: 31 March 2012: 43,081,164).
The diluted net asset value per share assumes that the 2,433,208
Subscription shares were exercised at 699p resulting in assets attributable to
ordinary shareholders of £439,030,000 and on 47,774,672 shares (30 September
2011: £382,235,000 and 51,307,723 shares: 31 March 2012: £437,126,000 and
50,186,012 shares).
The fully diluted net asset value per share for subscription
shares and treasury shares assumes that 2,433,208 subscription
shares were exercised at 699p and 378,408 treasury shares were sold
back to the market at 860.5p (the prevailing share price as at
30 September 2012) resulting in
assets attributable to ordinary shareholders of £442,286,000
(30 September 2011: £382,408,000:
31 March 2012: £444,349,000) and on
48,153,080 shares (30 September 2011:
51,332,723 shares: 31 March 2012:
51,094,598 shares).
6. TRANSACTION COSTS
Purchase transaction costs for the six months ended 30 September 2012 were £463,000 (six months ended
30 September 2011: £282,000; year
ended 31 March 2012: £575,000).
Sales transaction costs for the six months ended 30 September 2012 were £406,000 (six months ended
30 September 2011: £291,000; year
ended 31 March 2012: £504,000).
These costs comprise mainly commission.
7. SUBSCRIPTION SHARES
During the period ended 30 September 2012 a total of 4,671,640
subscription shares were exercised for a total consideration of £29,805,000.
At the period end the Company's share capital included 2,433,208 subscription
shares, which are currently exercisable at 699p per share.
8. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information contained in this half year report
does not constitute statutory accounts as defined in sections
434-436 of the Companies Act 2006. The financial information for
the half years ended 30 September
2012 and 30 September 2011 has
not been audited, or reviewed by the auditors.
The information for the year ended 31 March 2012 has been extracted
from the latest published audited financial statements. The audited financial
statements for the year ended 31 March 2012 have been filed with the Registrar
of Companies. The report of the auditors on those accounts was unqualified,
did not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying the report, and did not
contain statements under section 498 of the Companies Act 2006.
Earnings for the first six months should not be taken as a guide
to the results for the full year.
Interim Management Report
PRINCIPAL RISKS AND UNCERTAINTIES The Company’s principal risks
are as follows and are described in more detail under the heading
Principal Risks and their Mitigation in the Company’s Annual Report
for the year ended 31 March 2012:
Investment Activity and Strategy; Shareholder Relations and
Corporate Governance; Operational; Financial; and Accounting, Legal
and Regulatory. The Company's principal risks and uncertainties
have not changed materially since the date of that report and are
not expected to change materially for the remaining six months of
the Company's financial year.
RELATED PARTY TRANSACTIONS During the first six months of the
current financial year no material transactions with related
parties have taken place which have affected the financial position
or the performance of the Company during the period.
DIRECTORS’ RESPONSIBILITIES The Board of Directors confirms
that, to the bestof its knowledge: (i)
the condensed set of financial statements contained within the Half
Year Report has been prepared in accordance with applicable
accounting standards; and (ii)
the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority and Transparency Rules.
The Half Year Report has not been reviewed or audited by the Company’s auditors
The Half Year Report was approved by the Board on 21 November 2012 and the above responsibility statement was signed on its behalf by:
Martin Smith Chairman
Frostrow Capital LLP
Company Secretary
21 November 2012