RESULTS ANNOUNCEMENT FOR THE HALF YEAR ENDED 31 … · strong dividend yield, while resources also...

Aberdeen Leaders Limited GPO Box 4306, Sydney NSW 2001 Telephone: +61 (0)2 9950 2888 Fax: +61 (0)2 9950 2800 aberdeenasset.com.au Aberdeen Leaders Limited ABN 25 003 236 173 is managed by Aberdeen Asset Management Limited, a member of the Aberdeen Asset Management Group of Companies.

ABERDEEN LEADERS LIMITED

ABN: 25 003 236 173

RESULTS ANNOUNCEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

CONTENTS

• Summary of results

• Chairman’s statement

• Manager’s review

• Investment portfolio

• Aberdeen Leaders Limited financial report for the half year

The Appendix 4D Accounts have been audited.

Gil Orski Company Secretary 10 February 2014

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Aberdeen Leaders LimitedAppendix 4D

31 December 2013endedFor the half-year

Aberdeen Leaders LimitedAppendix 4DPreliminary Half-year Report

31 December 2013Half-year endedThe previous2013.31 Decemberto1 July 2013fromperiodreport is for the reportinghalf-year endedThis

2012.31 Decemberto1 July 2012wasperiodhalf-year endedcorresponding

Results for announcement to the market

$'000

Revenue from ordinary activities Down 6.4% to 2,198Profit after tax attributable to members Down 1.6% 995Profit before tax attributable to members Down 2.2% 745

Dividends

DividendRate

TotalAmount

$'000Record

DateDate of

PaymentPercentage

Franked

Ordinary 1.75c 1,069 13/01/2014 31/01/2014 100%

Ordinary 1.75c 1,067 14/10/2013 01/11/2013 100%

Net tangible assets

31 December2013

31 December2012

NTA (per share) after estimated tax on unrealised income & gains/losses (pershare) 1.12 1.11NTA (per share) before estimated tax on unrealised income & gains/losses 1.16 1.13NTA (per share) before estimated tax on unrealised income & gains/losses andbefore all deferred taxes 1.11 1.08

Explanation of results(1) The Company’s net profit after tax for the half-year is $995,000 (2012: net profit $1,011,000), a decrease of1.6% compared to the equivalent prior year period.

For the 6 months to 31 December 2013 $71,000 in losses were realised compared to $7,000 in losses in thesame period last year.

(2) Aberdeen Leaders Limited is a listed investment company. "Revenue" and "Profit" are incidental results ofdividends and other income received, and ignore gains (or losses) both from top-slicing the portfolio, and in the(unrealised) value of the underlying investments. The Company's financial health is measured by its net tangibleassets, not accounting profits.

For any queries please contact:

Gil OrskiCompany Secretary

Telephone: +61 2 9950 2888Facsimile: +61 2 9950 2800

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CHAIRMAN’S STATEMENT

Dear Shareholder

Profit after tax for the half year ended 31 December 2013 was $0.955 million, a slight reduction on 2012. This reflects the lower dividend income received in the first half of the financial year compared to the same period last year, due to a slight re-alignment of the Portfolio to lower yielding shares.

The big four Australian banks continue to source over 60% of their funding from deposits, but with interest rates where they are this has probably peaked. The banks’ share prices performed well on the back of their consistently strong dividend yield, while resources also outperformed in the half as the iron ore price remained firm.

During the second half of 2013 the Reserve Bank of Australia (RBA) cut interest rates once from 2.75% to 2.5%, a historical low. We suspect that interest rates will stay around current levels for some time as the RBA tries to stimulate the non-resource related sectors of the Australian economy. For some time the RBA has been attempting to talk down the strong Australian dollar versus the US dollar and this has had some success, but mostly in the first half of the calendar year with it ending at 91.4c. Since then it has remained fairly flat, trading at 89.0c at the end of December. This is providing some relief to Australian exporters and to companies with substantial earnings overseas. The savings rate in Australia, currently sitting at over 10% of household disposable income, remains stubbornly high, but we have seen significant pick-up in property prices in the last six months, especially in the capital cities, which has led to a slight improvement in consumer sentiment.

It was a positive half-year for the Australian share market, with the S&P/ASX200 Accumulation Index returning 13.97% – a very pleasing number. Against this backdrop the Company’s gross assets returned 8.49%* over the same period. As at 31 December the NTA per share was $1.16, eight cents up on the 30 June 2013 figure. Net of deferred tax on unrealised gains, the NTA was $1.12 per share, an increase of 4.4% since end June 2013. The share price closed at $1.35 representing a return of 12.19%*.

*After adding back dividends paid during the period

As at 31 December 2013 the share price stood at a premium to both pre-tax NTA and post-tax NTA.

Interim Dividend

A fully franked dividend of 1.75 cents per share was declared on 23 December 2013, payable on 31 January 2014. The Board will continue to monitor the quantum of dividends received from the Portfolio’s investments and bear this in mind, together with other factors, when determining the overall level of dividends paid in the future.

Dividend Reinvestment Plan

I would like to remind investors of the Company’s Dividend Reinvestment Plan (DRP) which allows eligible shareholders to have their dividends automatically reinvested in the Company. If you would like to participate in the DRP or would like more information please phone 02 9290 9600 and we will mail you a DRP booklet containing the relevant information.

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Outlook

The New Year has got off to a shaky start and we wait for the upcoming reporting season with interest, especially any commentary from management regarding outlook statements. Conditions in the corporate space in Australia are far from benign and most companies, while focusing on costs, are finding it difficult to grow the top line. The resource sector continues to ramp up volumes and plans are in place by both BHP Billiton and Rio Tinto to increase capacity further. European economies remain subdued and we have seen some pick-up in growth in the United States (though the full effects of a tapering of quantitative easing have yet to appear). The stock market in Australia has seen some price earnings expansion in the last six months and probably needs to see some earnings catch-up in the forthcoming results season to justify current levels; though by historical standards the market is not expensive. Most Australian companies have maintained relatively low levels of debt and balance sheets are generally in good shape. We continue to monitor good quality companies for reasonable buying opportunities.

Brian Sherman AM February 2014

Chairman

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ABERDEEN LEADERS LIMITED

MANAGER’S REVIEW

SIX MONTHS ENDED 31 DECEMBER 2013

The S&P/ASX 200 Accumulation Index increased by 13.9% in the six months to December 2013. It is interesting to look at the breakdown of index and gross portfolio returns over the period: Period to 31 December 2013 Gross Portfolio Index Six months 8.49% 13.97% Three months 0.85% 3.42%

As can be seen from the above table the first six months of the Company’s financial year have seen strong Australian stock market performance, though disappointingly the Portfolio underperformed against the benchmark. This was mainly due to stock specific issues, namely QBE Insurance’s write-downs in its North American business in December and Westfield Group’s underperformance. Also being underweight to Financials (in particular not holding National Australia Bank) and being overweight Utilities hurt performance. During the past six months we only made one sale within the portfolio, disposing of our small holding in David Jones over concerns of the impact of a continuing slowdown in consumer spending. We did alter the model weights of some of our holdings, reducing QBE Insurance on the back of the write down announcement and reducing slightly our holdings in Newcrest Mining, Worley Parsons and Cochlear. We increased our holdings in AMP, ASX, Woodside Petroleum, Singtel, SP AusNet, BHP Billiton and Rio Tinto. The table below identifies the major contributors and detractors to performance relative to the benchmark: Key contributors and detractors – six months to 31 December 2013 Top 5 Contributors Stock Relative weight (%) Contribution (%) Rio Tinto 5.9 0.92 BHP Billiton 2.0 0.18 Westfield Retail Trust -0.7 0.12 Orica 1.4 0.11 GPT Group -0.4 0.11 Top 5 Detractors Stock Relative weight (%) Contribution (%) QBE Insurance 3.3 -1.57 Westfield Group 4.2 -1.02 Coca-Cola Amatil 3.1 -0.55 Worley Parsons 1.5 -0.50 National Australia Bank -6.2 -0.39

As can be seen, a significant proportion of the Portfolio’s underperformance over the six months can be attributed to QBE Insurance. We have had several meetings with management post the December announcement and the shares remain in the portfolio, albeit at a much reduced weighting. Westfield Group also remains in the portfolio as it provides exposure to the sector, is diversified internationally and has a solid yield. Since our June 2013 report the share market has expanded on a price earnings multiple and we feel that earnings will need to show some catch-up to fully justify this expansion; the forthcoming results announcements in February will hopefully provide some evidence of this. We will also be watching carefully for any guidance given by management on their outlook. Business confidence in Australia remains relatively low, although the Australian dollar’s slight decline in the last six months has been welcomed by some companies. The current low interest rate environment is providing benefits to some sectors. We continue to believe that identifying good quality companies at reasonable values and holding them for the long term will provide superior returns. Aberdeen Asset Management Limited February 2014

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PHYSICAL Quantity Mkt Value Portfolio

Weighting

FINANCIALS EX PROPERTY TRUSTS

ANZ Banking Group 206,300 6,642,860 6.73%

Australian Stock Exchange 117,500 4,314,600 4.37%

AMP LTD 999,700 4,388,683 4.45%

Commonwealth Bank 86,900 6,756,475 6.85%

QBE Insurance Group 379,400 4,363,100 4.42%

Westpac Banking Corp 121,600 3,928,896 3.98%

Subtotal $30,394,614 30.79%

PROPERTY TRUSTS

Westfield Group 556,500 5,570,565 5.64%

Subtotal $5,570,565 5.64%

CONSUMER DISCRETIONARY

Tattersall's Limited 476,600 1,472,694 1.49%

Subtotal $1,472,694 1.49%

CONSUMER STAPLES

Coca-Cola Amatil 300,200 3,611,406 3.66%

Woolworths Limited 158,700 5,356,125 5.43%

Subtotal $8,967,531 9.09%

HEALTH CARE

Cochlear Limited 25,600 1,507,840 1.53%

CSL Limited 56,100 3,858,558 3.91%

Subtotal $5,366,398 5.44%

ENERGY

Caltex Australia 66,300 1,314,066 1.33%

Worley Group 104,900 1,731,899 1.75%

Woodside Petroleum 79,000 3,073,100 3.11%

Subtotal $6,119,065 6.20%

MATERIALS

BHP Billiton Limited 293,000 11,075,400 11.22%

Incitec Pivot Limited 528,900 1,412,163 1.43%

Newcrest Mining Limited 141,300 1,102,140 1.12%

Orica Limited 85,900 2,043,561 2.07%

Rio Tinto 118,100 8,037,886 8.14%

Subtotal $23,671,150 23.97%

INFO TECH

Computershare 278,500 3,149,835 3.19%

Subtotal $3,149,835 3.19%

TELECOMMUNICATION SERVICES

Singapore Telecommunications Limited 1,255,200 3,891,120 3.94%

Subtotal $3,891,120 3.94%

UTILITIES

AGL Energy Limited 265,750 3,978,278 4.03%

SP Ausnet 3,244,000 4,038,780 4.09%

Subtotal $8,017,058 8.12%

EQUITY TOTAL $96,620,030 97.87%

Net Liquidity including dtl $2,080,040 2.13%

Total Assets excluding Debt $98,700,070 100.00%

Loan Facility ($30,000,000) -30.40%

Total Equity $68,700,070 69.60%

Portfolio31 December 2013

ALR Audit Report as at 31 December 2013 10

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Aberdeen Leaders Limited25 003 236 173ABN

Interim Report31 December 2013half-year endedfor the

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Aberdeen Leaders LimitedDirectors' Report


Directors' Report

("theAberdeen Leaders Limitedpresent their report together with the financial report ofDirectorsYour2013.31 Decemberendedhalf-year endedCompany") for the

Directors

period:financialduring theAberdeen Leaders LimitedofDirectorsThe following persons held office as

(AM, B Comm, CTA SIA (Aff))Brian Michael Sherman(B Comm (Hons), CA)Neville John Miles

(AM, BEE (Hons), B Comm, MSc, FCPA)David Lindsay Elsum(BSc Econ)Augustine Mark Daniels

(Appointed 4 December 2013 and Alternate Director for Brian Michael Sherman)Barry Sechos

Review of operations

net profit $1,011,000), a decrease of 1.6%(2012:The Company’s net profit after tax for the half-year is $995,000compared to the equivalent prior year period.

$71,000 in losses were realised compared to $7,000 in losses in the2013For the 6 months to 31 Decembersame period last year. These gains and losses are reflected in Other Comprehensive Income.

1.67 cents per share).(2012:Earnings per share amounted to 1.63 cents per share for the half-year

2013,Net tangible assets before tax on unrealised gains have increased to $1.16 per share at 31 Decemberwhile net tangible assets after tax on unrealised gains increased to $1.12 per share.

the Company declared dividends totalling 3.50 cents per share2013,For the six months ended 31 December3.75 cents).(2012:fully franked

Rounding of amounts

is of a kind referred to in Class Order 98/100, issued by the Australian Securities and InvestmentsCompanyTheDirectors' ReportAmounts in theReport.Directors'Commission, relating to the 'rounding off' of amounts in the

have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases,to the nearest dollar.

Auditor's independence declaration

isCorporations Act 2001A copy of the auditor's independence declaration as required under section 307C of the2.set out on page

Directors.This report is made in accordance with a resolution of

Augustine Mark DanielsDirector

Sydney10 February 2014

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Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

Deloitte Touche Tohmatsu

A.B.N. 74 490 121 060

Grosvenor Place

225 George Street

Sydney NSW 2000

PO Box N250 Grosvenor Place

Sydney NSW 1220 Australia

DX 10307SSE

Tel: +61 (0) 2 9322 7000

Fax: +61 (0) 2 9322 7001

www.deloitte.com.au

10 February 2014

Dear Board Members,

Aberdeen Leaders Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following

declaration of independence to the directors of Aberdeen Leaders Limited.

As lead audit partner for the review of the financial statements of Aberdeen Leaders Limited for the half-year

ended 31 December 2013, I declare that to the best of my knowledge and belief, there have been no

contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

(ii) any applicable code of professional conduct in relation to the review.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Alfred Nehama

Partner

Chartered Accountants

The Board of Directors

Aberdeen Leaders Limited

Level 6, 201 Kent Street

SYDNEY NSW 2000

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Aberdeen Leaders LimitedStatement of Comprehensive Income

For the half-year ended 31 December 2013

Half-year ended

Notes

31 December2013$'000


Investment income from ordinary activities 4 2,198 2,349

ExpensesManagement fees (540) (520)Share registry fees (44) (51)Custody fees (52) (47)Directors' fees (88) (90)Directors' liability insurance fees (21) (23)Legal fees - (1)ASX fees (48) (36)Audit fees (37) (43)Other expenses (11) (13)Interest expense (612) (763)

(1,453) (1,587)

Profit before income tax 745 762

Income tax benefit 250 249periodProfit for the 995 1,011

Other comprehensive income

Items that will not be reclassified to profit or lossNet unrealised gains on investments taken to equity 5,716 9,253Income tax relating to unrealised gains on investments taken to equity (1,715) (2,776)Net realised losses on investments taken to equity (71) (7)Income tax relating to realised losses on investments taken to equity 21 2

net of taxperiod,Other comprehensive income for the 3,951 6,472

periodTotal comprehensive income for the 4,946 7,483

Cents Cents

Earnings per share for profit attributable to the ordinary equityCompany:holders of the

Basic earnings per share 9 1.63 1.67Diluted earnings per share 9 1.63 1.67

should be read in conjunction with the accompanying notes.Statement of Comprehensive IncomeThe above

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Aberdeen Leaders LimitedStatement of Financial Position

As at 31 December 2013

At

Notes


30 June2013$'000

ASSETSCurrent assetsCash and cash equivalents 3,337 1,083Trade and other receivables 103 1,211Other current assets 14 35Total current assets 3,454 2,329

Non-current assetsFinancial assets at fair value through other comprehensive income 96,620 93,704Deferred tax assets 2,741 2,462Total non-current assets 99,361 96,166

Total assets 102,815 98,495

LIABILITIESCurrent liabilitiesTrade and other payables 771 276Dividends payable 1,069 2,276Borrowings 6 30,000 -Total current liabilities 31,840 2,552

Non-current liabilitiesBorrowings 6 - 30,000Deferred tax liabilities 2,275 554Total non-current liabilities 2,275 30,554

Total liabilities 34,115 33,106

Net assets 68,700 65,389

EQUITYIssued capital 7 58,509 58,009Reserves 5,059 1,058Retained earnings 5,132 6,322

Total equity 68,700 65,389

should be read in conjunction with the accompanying notes.Statement of Financial PositionThe above

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Aberdeen Leaders LimitedStatement of Changes in Equity


Notes

Issuedcapital$'000

Reserves$'000

Retainedearnings

$'000Total$'000

1 July 2012Balance at 57,661 (3,956) 8,496 62,201

Net profit for the period - - 1,011 1,011

periodOther comprehensive income for theNet unrealised gains/losses on investments taken to equity - 9,253 - 9,253Income tax on net unrealised gains/losses on investments takento equity - (2,776) - (2,776)Net realised gains/losses on investments taken to equity - (7) - (7)Income tax on net realised gains/losses on investments taken toequity - 2 - 2

net of taxperiod,Total other comprehensive income for the - 6,472 - 6,472

periodTotal comprehensive income for the - 6,472 1,011 7,483

Transactions with owners in their capacity as owners:Net realised gains and losses transferred to retained earnings(net of income tax) - 5 (5) -Dividends provided for or paid 8 - - (2,264) (2,264)Buy-back of preference shares, net of tax 7 (1) - - (1)

(1) 5 (2,269) (2,265)

31 December 2012Balance at 57,660 2,521 7,238 67,419

1 July 2013Balance at 58,009 1,058 6,322 65,389

periodNet profit for the - - 995 995

periodOther comprehensive income for theNet unrealised gains/losses on investments taken to equity - 5,716 - 5,716Income tax on net unrealised gains/losses on investments takento equity - (1,715) - (1,715)Net realised gains/losses on investments taken to equity - (71) - (71)Income tax on net realised gains/losses on investments taken toequity - 21 - 21

net of taxperiod,Total other comprehensive income for the - 3,951 - 3,951

periodTotal comprehensive income for the - 3,951 995 4,946

Transactions with owners in their capacity as owners:Contributions of equity, net of transaction costs and tax 7 500 - - 500Net realised gains and losses transferred to retained earnings(net of income tax) - 50 (50) -Dividends provided for or paid 8 - - (2,135) (2,135)

500 50 (2,185) (1,635)

31 December 2013Balance at 58,509 5,059 5,132 68,700

should be read in conjunction with the accompanying notes.Statement of Changes in EquityThe above

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Aberdeen Leaders LimitedStatement of Cash Flows


Half-year ended

Notes



Cash flows from operating activitiesDividends received 2,466 2,595Interest received 26 48Management fees paid (529) (642)Finance costs paid (513) (847)Payments for other expenses (244) (243)

from operating activitiesinflowNet cash 1,206 911

Cash flows from investing activitiesPayments for purchase of investments (5,490) (4,805)Proceeds from sale of investments 9,381 6,396

from investing activitiesinflowNet cash 3,891 1,591

Cash flows from financing activitiesShare issue and buy-back transaction costs - (1)Dividends paid (2,843) (3,322)

from financing activities(outflow)Net cash (2,843) (3,323)

in cash and cash equivalentsincrease/(decrease)Net 2,254 (821)Cash and cash equivalents at the beginning of the period 1,083 3,458

periodCash and cash equivalents at end of 3,337 2,637

should be read in conjunction with the accompanying notes.Statement of Cash FlowsThe above

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Aberdeen Leaders LimitedNotes to the Financial Statements

31 December 2013For the half-year

1 Summary of significant accounting policies

are set outinterim financial statementstheseThe principal accounting policies adopted in the preparation ofpresented, unless otherwise stated. Theperiodsbelow. These policies have been consistently applied to all the

Limited.Aberdeen Leadersentityare for theinterim financial statements

(a) Basis of preparation of half-year report

beenhave31 December 2013for the half-year reporting period endedinterim financial statementsTheseCorporationsand theInterim Financial Reportingprepared in accordance with Accounting Standard AASB 134

2001.Act

not include all the notes of the type normally included in an annual financialdointerim financial statementsThese30 June 2013report. Accordingly, this report is to be read in conjunction with the annual report for the year ended

during the interim reporting period inAberdeen Leaders Limitedand any public announcements made by2001.Corporations Actaccordance with the continuous disclosure requirements of the

have been prepared on an accrual basis, and are based on historical costsinterim financial statementsThemodified by the revaluation of selected non-current assets, financial assets and financial liabilities for which thefair value basis of accounting has been applied.

Except as described below, the accounting policies adopted are consistent with those of the previous financialyear and corresponding interim reporting period.

(i) Adoption of new and revised accounting standards

has adopted all of the new and revised Standards and Interpretations issued by the AustralianCompanyTheAccounting Standards Board that are relevant to its operations and effective for the current reporting period.

Adoption of AASB 13 Fair Value Measurement

AASB 13 establishes a single framework for measuring fair value and making disclosures about fair valuemeasurements, when such measurements are required or permitted by other AASBs. In particular, it unifies thedefinition of fair value as the price at which an orderly transaction to sell an asset or to transfer a liability wouldtake place between market participants at the measurement date. It also replaces and expands the disclosure

7 Financial Instruments:requirement about fair value measurements in other AASBs, including AASBSome of these disclosures are specifically required in interim financial statements for financialDisclosures.

The2).has included additional disclosures in this regard (see NoteCompanyinstruments; accordingly, thewith effect from 1 July 2013. In accordance with theFair Value Measurementhas adopted AASB 13Company

has not madeCompanytransitional provisions, AASB 13 has been applied prospectively from that date and thehasCompanyany new disclosures required by AASB 13 for the 2012 comparative period. As a result, the

adopted a new definition of fair value, as set out below. The change had no material impact on the measurementhas included new disclosures in the financialCompanyassets and liabilities. However theCompany'sof the

statements which are required under AASB 13 for interim financial reporting.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transactionbetween market participants at the measurement date in the principal, or in its absence, the most advantageous

has access at that date. The fair value of a liability reflects its non-performanceCompanymarket to which therisk.

measures the fair value of an instrument using the quoted prices in an activeCompanyWhen applicable, themarket for that instrument. A market is regarded as active if transactions for the asset or liability take place withsufficient frequency and volume to provide pricing information on an ongoing basis.

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31 December 2013For the half-year(continued)

1 (continued)Summary of significant accounting policies

(a) (continued)Basis of preparation of half-year report

The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price -determines that the fair value at initialCompanyi.e the fair value of the consideration given or received. If the

recognition differs from the transaction price and the fair value of neither a quoted price in an active market foridentical asset or liability nor based on a valuation technique that uses only data from observable markets, thefinancial instruments are initially measured at fair value, adjusted to defer the difference between the fair value atinitial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on anappropriate basis over the life of the instrument but not later than when the valuation is supported wholly byobservable market data or the transaction is closed out.

(b) Investments and other financial assets

Classification(i) Financial assets at fair value through other comprehensive income

The Company has designated long-term investments as "fair value through other comprehensive income". Allgains and losses on long-term investments and tax thereon are presented in other comprehensive income as part

Income.Statement of Comprehensiveof the

Recognition and derecognitioncommitsCompanyPurchases and sales of financial assets are recognised on trade-date - the date on which the

to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from thehas transferred substantially all theCompanyfinancial assets have expired or have been transferred and the

risks and rewards of ownership.

Measurementmeasures financial assets and liabilities at fair value.CompanyAt initial recognition, the

Transactions costs of financial assets carried at fair value through other comprehensive income are directlyattributable to the acquisition of the financial asset.

Subsequent changes in fair value are recognised through the investment portfolio revaluation reserve afterdeducting a provision for the potential deferred capital gains tax liability as these investments are long-termholding of equity investments.

When an investment is disposed, the cumulative gain or loss, net of tax thereon, is transferred from theinvestment portfolio revaluation reserve to retained earnings.

Determination of Fair Value

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in anorderly transaction between market participants at the measurement date in the principal, or in its absence, the

has access at that date. The fair value of a liability reflects itsCompanymost advantageous market to which thenon-performance risk.

.accounting policy on fair value measurements is discussed in NoteCompany'sThe

Under AASB 13, if an investment has a bid price and an ask price, the price within the bid-ask spread that ismore representative of fair value in the circumstances shall be used to measure fair value. Accordingly, the

uses the last bid price as a basis of measuring fair value.Company

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1 (continued)Summary of significant accounting policies

(c) Income tax

Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or lossexcept to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is expected tax payable on the taxable income for the year, using tax rates enacted or substantivelyenacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is based upon temporary differences between the carrying amounts of assets and liabilities forfinancial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the taxrates that are expected to be applied to the temporary differences when they reverse, based on the laws thathave been enacted or substantively enacted by the reporting date.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be availableagainst which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date andare reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(d) Net working capital

shows current liabilities in excess ofStatement of Financial PositionCompany'sthe2013,31 DecemberAtcurrent assets by $28,386,000 due to the classification of a $30,000,000 loan facility, due to mature on 28 August2014, as a current liability.

to renew this loan facility for another long term period as part of the gearingDirectorsIt is the intention of theCompany.strategy of the

(e) New accounting standards and interpretations issued but not yet applied by the entity

There are no other standards that are not yet effective and that are expected to have a material impact on thein the current or future reporting periods and on foreseeable future transactions.Company

2 Fair value measurements

measures and recognises the following assets and liabilities at fair value on a recurring basis:CompanyThe

• other comprehensive income (FVTOCI)Financial assets at fair value through

has no assets or liabilities measured at fair value on a non-recurring basis in the current reportingCompanyTheperiod.

(a) Fair value hierarchy

AASB 13 requires disclosure of fair value measurements by level of the following fair value measurementhierarchy (consistent with the hierarchy applied to financial assets and financial liabilities):

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either

directly or indirectly (level 2), and(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level

3).

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2 (continued)Fair value measurements

(a) (continued)Fair value hierarchy

(i) Recognised fair value measurements

31assets and liabilities measured and recognised at fair value atCompany’sThe following table presents thehas not been provided as permitted by the transitional provisions ofComparative information2013.December

the new rules.

31 December 2013AtLevel 1$'000

Level 2$'000

Level 3$'000

Total$'000

Recurring fair value measurementsFinancial assetsFinancial assets at FVTOCI

Equity securities 96,620 - - 96,620

Total financial assets 96,620 - - 96,620

period.There were no transfers between levels for recurring fair value measurements during the

policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the endCompany’sTheof the reporting period.

(ii) Disclosed fair values

For all financial instruments other than those measured at fair value their carrying value approximates fair value.

The carrying amounts of trade and other receivables and payables are assumed to approximate their fair valuesdue to their short-term nature.

significant.borrowings approximates the carrying amount, as the impact of discounting is notThe fair value of

3 Segment information

is engaged solely in investment activitiesCompanyhas only one reportable segment. TheCompanyTheconducted in Australia, deriving revenue from dividend income, interest income and from the sale of itsinvestments.

4 Revenue

Half-year ended31 December

2013$'000


Dividends 2,041 2,304Interest 30 45Distributions 127 -

2,198 2,349

5 Income tax expense

Income tax expense is recognised based on management’s estimate of the weighted average effective annualincome tax rate expected for the full financial year. The estimated average annual tax rate used for the year to

2012.31 Decemberis -34%, compared to -33% for the six months ended31 December 2013

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6 Borrowings

At31 December

201330 June

2013

Current$'000

Non-current$'000

Total$'000

Current$'000

Non-current$'000

Total$'000

SecuredBank loans 30,000 - 30,000 - 30,000 30,000Total secured borrowings 30,000 - 30,000 - 30,000 30,000

The Directors have entered into a $30 million revolving cash advance facility with Westpac Banking CorporationLimited.

The facility is secured by a fixed and floating charge over the Company’s assets. The carrying amount of the$96,033,000). The facility is2013:June(30is $100,074,00031 December 2013assets pledged as security at

fully drawn to $30 million at balance date.

The debt facility was renewed in September 2011 and expires on 29 August 2014.

7 Issued capital

(a) Share capital

31 December2013

Shares

30 June2013

Shares


30 June2013$'000

Ordinary shares 61,104,776 60,691,871 58,509 58,009

(b) Movements in ordinary share capital

Date DetailsNumber of

sharesIssueprice $'000

- - -

Date DetailsNumber of

shares Issue price $'000

1 July 2012 Opening balance 60,401,603 57,661Dividend reinvestment plan issues 290,970 $1.20 349Share buyback - on market (702) $1.04 (1)

201330 June Balance 60,691,871 58,009

1 July 2013 Opening balance 60,691,871 58,009Dividend reinvestment plan issues 412,905 $1.21 500

31 December 2013 Balance 61,104,776 58,509

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7 (continued)Issued capital

(c) Share buy-back

announced an on-market share buy-back program in February 2012. The buy-back period endedCompanyThebought back nil sharesCompanyon 27 February 2013, however, was renewed until 27 February 2014. The

during the half-year period ended 31 December 2013 (2012: 702 shares at an average price of $1.04).

(d) Dividend reinvestment plan

2013.31 DecemberA Dividend Reinvestment Plan has been in operation for the period ended

Under the Dividend Reinvestment Plan in operation, a DRP form received by the Company shall be effective inrespect of all dividends payable after receipt of the DRP form. This is with the exception of any DRP formreceived by the Company after 4:00pm on the Record Date, in this instance it shall not be effective in respect ofthose dividends.

The financial effect of these dividends has been brought to account in the financial statements for the half-year2013.31 Decemberended

8 Dividends

(a) Ordinary shares


2013$'000


half-year endedDividends provided for or paid in respect of the 2,135 2,264

(b) Dividend rate

Dividends paid fully franked at 30% tax rate

DividendRate

Total Amount$'000

Date ofPayment % Franked

2013Ordinary shares - interim 1.75cps $1,069 31/01/2014 100%

Ordinary shares - interim 1.75cps $1,067 01/11/2013 100%

2012Ordinary shares - interim 2.00cps $1,207 31/01/2013 100%

Ordinary shares - interim 1.75cps $1,057 02/11/2012 100%

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9 Earnings per share

(a) Basic earnings per share


2013Cents

31 December2012Cents

From continuing operations attributable to the ordinary equity holders of thecompany 1.63 1.67Total basic earnings per share attributable to the ordinary equity holders of theCompany 1.63 1.67

(b) Diluted earnings per share


2013Cents

31 December2012Cents

From continuing operations attributable to the ordinary equity holders of thecompany 1.63 1.67Total diluted earnings per share attributable to the ordinary equity holders of theCompany 1.63 1.67

(c) Weighted average number of shares used as denominator

Half-year ended2013

Number2012

Number

Weighted average number of ordinary shares used as the denominator incalculating basic earnings per share 60,979,691 60,401,138

Weighted average number of ordinary and potential ordinary shares used as thedenominator in calculating diluted earnings per share 60,979,691 60,401,138

10 Contingencies

with Aberdeen Asset ManagementCompanyThe Investment Management Agreement entered into by theLimited may be terminated by either party giving to the other no less than one-year written notice of its intentionto do so.

nil).(2012:31 December 2013had no contingent liabilities atCompanyThe

11 Events occurring after the reporting period

end that has significantly affected, or mayperiodNo matter or circumstance has occurred subsequent tothe results of those operations or the state of affairs of theCompany,significantly affect, the operations of the

periods.financialin subsequentCompany

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Aberdeen Leaders LimitedDirectors' Declaration


opinion:Directors'In the

(a) are in accordance with the13to3and notes set out on pagesinterim financial statementstheincluding:2001,Corporations Act

(i) CorporationstheReporting,Interim Financialcomplying with Accounting Standard AASB 134and other mandatory professional reporting requirements, andRegulations 2001

(ii) and of its31 December 2013entity's financial position as atgiving a true and fair view of theon that date, andhalf-year endedperformance for the

(b) will be able to pay its debts as and when theyCompanythere are reasonable grounds to believe that thepayable.become due and

Directors.This declaration is made in accordance with a resolution of

Augustine Mark DanielsDirector

Sydney10 February 2014

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Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

Deloitte Touche Tohmatsu

ABN 74 490 121 060

Grosvenor Place

225 George Street

Sydney NSW 2000

PO Box N250 Grosvenor Place

Sydney NSW 1220 Australia

DX: 10307SSE

Tel: +61 (0) 2 9322 7000

Fax: +61 (0) 9322 7001

www.deloitte.com.au

Independent Auditor’s Review Report

to the Members of Aberdeen Leaders Limited

We have reviewed the accompanying half-year financial report of Aberdeen Leaders Limited, which

comprises the condensed statement of financial position as at 31 December 2013, and the condensed statement of comprehensive income, the condensed statement of cash flows and the condensed statement

of changes in equity for the half-year ended on that date, selected explanatory notes and, the directors’

declaration as set out on pages 3 to 14.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act

2001 and for such internal control as the directors determine is necessary to enable the preparation of the

half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We

conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review

of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the

half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and

fair view of Aberdeen Leaders Limited’s financial position as at 31 December 2013 and its performance

for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Aberdeen Leaders

Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the

annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for

financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and

consequently does not enable us to obtain assurance that we would become aware of all significant

matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Auditor’s Independence Declaration

In conducting our review, we have complied with the independence requirements of the Corporations Act

2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Aberdeen Leaders Limited, would be in the same terms if given to the

directors as at the time of this auditor’s review report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Aberdeen Leaders Limited is not in accordance with the

Corporations Act 2001, including:

(a) giving a true and fair view of the company’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and

(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

DELOITTE TOUCHE TOHMATSU

Alfred Nehama

Partner

Chartered Accountants

Sydney, 10 February 2014

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RESULTS ANNOUNCEMENT FOR THE HALF YEAR ENDED 31 … · strong dividend yield, while resources also...

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