Thursday, 22 February 2018


ANNREP: BIT: BIT - Final Results

16 Jan 2018 08:30NZX

Annual Financial Report for the year ended 31 October 2017

This announcement contains regulated information

Performance Highlights  31 October 2017
31 October 2016
NAV per share at year end 878.9p 755.9p
Share price at year end(1) 852.0p 690.0p
Dividend for year(2) 18.6p 17.0p

31 October 2017
31 October 2016
Dividend yield(3) 2.2% 2.5%
Retail Prices Index increase over year 4.0% 2.0%
Ongoing charge for year 0.44% 0.52%
Net gearing at year end(4) 2.3% 2.6%
Discount at year end 3.1% 8.7%

(1)   Share price is the mid market closing price.
(2)  This represents the four ordinary dividends recommended or paid for the
(3)   Based on the share price at the year end.
(4)   Net gearing is calculated in accordance with the gearing definition in
the Alternative Performance Measures in the
Annual Report

Sources: Morningstar for the AIC, Janus Henderson, Datastream.


o Net asset value increase of 16.3%
o Dividend increase of 9.4%
o Forecast increase in 2018 dividend of at least 6.0%

I am very pleased to report another excellent year for our shareholders, with
a net asset value (''NAV'') increase of 16.3%. Also, the share price
performance was enhanced as the discount to NAV narrowed, with the share
price recording a 23.5% increase.

Whilst UK market sentiment was influenced by Brexit negotiations,
international markets continued to perform strongly as evidence of
strengthening economic activity and improving consumer confidence was
recorded in virtually every region. Currency movements were less pronounced
than last year albeit sterling weakened again against the Euro and US dollar.
So, for the second year running our capital value was helped by both strong
markets in the UK and overseas and a weaker level of sterling. This ''double''
impact was particularly evident in our North American portfolio where a
sterling total return of 24.3% was recorded and in our Continental European
portfolio with a total return of 21.5%. Total returns from Japan and Emerging
Markets were lower at 9.8% and 5.8% respectively whilst the UK portfolio had
a total return of 12.7%. Indeed, every international portfolio outperformed
its local benchmark. Special mention must be made of our mainland China
equity exposure where we recorded a total return of 55.3% against a local
benchmark of 15.1%. On behalf of the Board, I would like to thank all of our
fund managers for this exceptional performance.

I have reported on several occasions that strategic asset allocation
decisions have led to a considerable shift in our equity exposure away from
the UK and into other major markets, primarily North America during the past
five years. North America is now our single largest country exposure at
approximately 28%, followed by the UK at approximately 26%. Many market
commentators have, over the years, tried to call the top of the North
American market based on stretched valuation levels. But, despite a backdrop
of increasing interest rates, multiples have continued to rise and in certain
sectors appear to be significantly beyond any normal valuation levels. With
this in mind we are unlikely to increase our US asset allocation in the short
to medium term.

Elsewhere, primarily in Continental Europe and Japan, the economic growth
story is gaining momentum and has yet to be fully reflected in corporate
earnings growth. Whilst many challenges remain in these two geographic areas,
they are likely to be the beneficiaries of any further asset allocation
shifts away from the UK which we may instigate in the year ahead.

Revenue and Dividends
Bankers has delivered a further solid increase in the revenue account,
reflecting positive currency movements, robust dividend growth and further
substantial special dividends. This performance has enabled the Board to
recommend an increase in the final quarterly dividend to 4.80p per share. If
approved by shareholders this will result in a total dividend payment for the
year of 18.6p (2016: 17.0p), an increase of 9.4%. This increase compares with
my forecast of at least 6%. Our revenue earnings per share over the same
period rose to 20.49p (2016: 17.53p), an increase of 16.9%.

The outlook for the year ahead from a revenue perspective remains positive.
The recommended final 2017 dividend payment, if approved, will still
accommodate a healthy transfer to revenue reserve which, at the year-end,
represented 1.8 times the cost of the 2017 annual dividend. These reserves
give the Board confidence in its discussions over future dividend growth. So,
I am pleased to be able to report, on behalf of the Board, a forecast of
dividend growth of at least 6.0% for 2018.

Change to Investment Objectives and Policy Wording
You will note in the annual report that the Board has reviewed the wording of
the investment objectives and policy. This has been driven by the FCA''s
thematic review on meeting customer expectations and ensuring that investment
objectives and policies are clear, accurate and not ambiguous. Shareholders
should rest assured that the existing twin key objectives of capital growth
and dividend growth remain core to the investment objectives of the Company.
We have taken the opportunity to consider introducing a global benchmark to
judge capital growth over the long term. After consultation with our Manager
and Corporate Broker we have decided to adopt the FTSE World Index, an index
of global companies. We intend to review performance over a suitable medium
to long term period, representing at least three years, as we do not wish our
fund managers to generate excessive trading to move the portfolio into line
with the index in seeking to generate short term relative performance.

Janus Henderson
We have followed the course of the merger between Henderson and Janus and the
additional resources and expertise that has been available to Alex Crooke,
our Fund Manager. We continue to be optimistic that Janus Henderson will be
able to provide Alex with the support he will need to build on the
performance of Bankers. We are also delighted to record Alex''s promotion to
Co-Head of Equities at Janus Henderson whilst continuing to be lead Fund
Manager of Bankers.

Board Changes
Both Matthew Thorne and David Wild will be retiring from the Board at the
forthcoming Annual General Meeting (''AGM''). On behalf of all shareholders I
thank both of them for their significant contribution to the continuing
success of the Company.

Matthew joined the Board in November 2008 and became Audit Committee Chairman
in 2010. During this period Matthew has been a strong independent
non-executive director who has demonstrated on many occasions his
responsibilities to shareholders. Having served a full nine year term Matthew
will retire at the AGM.

David joined the Board in February 2014 and is not seeking re-appointment at
the AGM. David''s executive role at Domino''s Pizza has expanded as that
company has developed and, as such, David felt unable to commit to the
continuing time demands placed upon the non-executive directors of your

I am pleased to report that Isobel Sharp joined the Board on 1 November 2017,
and will stand for appointment by shareholders at the forthcoming AGM. Isobel
has had a distinguished career in the accountancy profession, most recently
as the senior technical partner at Deloitte LLP. Further details of her
experience can be found in the Annual Report. Isobel will take on the Audit
Committee Chair upon Matthew''s retirement. I look forward to introducing
Isobel to shareholders at the AGM.

Annual General Meeting (''AGM'')
This year''s AGM will again be held at Trinity House, London, EC3N 4DH on 21
February 2018 at 12 noon. Full details of the business to be conducted at the
meeting are set out in the Notice of Meeting which will be sent to
shareholders with the Annual Report. Directions and a map showing the
location of the AGM can also be found in the Notice of Meeting. At the AGM,
Alex Crooke and his investment team will present their investment views and
how these are reflected in the portfolio. Following the formal business of
the meeting light refreshments will be served. The Board looks forward to
seeing many of you at the AGM.

Rising inflation and the reaction of central banks is likely to be one of the
bigger macro issues affecting global markets in the year ahead. Increasing
globalisation of the world economy has manifested itself in many ways with
one key aspect being the downward pressure on labour costs across major
economies. The recent increase in broader inflation measures has not yet
resulted in a significant increase in labour costs but the time may be
getting closer when labour cost pressures will be more evident. Central banks
in the US and UK are beginning to withdraw the monetary support to their
economies by raising interest rates. How aggressive this removal of monetary
support will be, especially with most markets at all-time highs, will be one
of the key determinants of market direction in 2018.

On a more positive note, global economic growth remains positive and
corporate earnings growth in most major markets is accelerating. Whether this
growth is already reflected in market valuations is another critical aspect
in trying to forecast returns for next year. One thing about which I am
certain, however, is to be cautious in extrapolating the returns of the past
two years into next year. Global stock markets and currencies may not be as
positively aligned in our favour as they have been during the past two years.

Richard Killingbeck

Stock markets have continued to dance to the tune being played by central
banks. Easy money and low interest rates provided a supportive back drop for
assets of all types to appreciate, effectively debasing the value of cash by
comparison. While certain politicians in the US and Europe have been
distracting the attention of commentators and news services, their relevance
to economic growth has been limited. The unexpected outturn was the US
Federal Reserve increasing interest rates at a lower rate than expected
maintaining the goldilocks era that has persisted for a few years. Investors
were said to be exhibiting rational exuberance by market strategists,
although in recent months this seems to be swinging to a less rational form
of speculation in cryptocurrencies such as Bitcoin. Our strategy has changed
little through the year, preferring to stay invested and concentrate on
businesses that produce strong cash generation which can support a return of
profits through dividends. This has resulted in another solid year of
relative performance, particularly at the stock picking level with every
region, bar the UK, outperforming their regional indices. The stand-out
performers were the US and once again the mainland China portfolio of A

The US portfolio has been the largest contributor to overall performance in
recent years, rising to over 30% of the portfolio value earlier this year, at
which point we decided to take some profits. Valuations in the US are at an
elevated level, justifiable to some extent by better growth, but as economic
activity improved in other parts of the world we felt better value could be
obtained elsewhere. These reductions proved to be well timed. The proceeds
from US sales were reinvested into Europe and China, and later in the year,
Japan. At a stock level, we are beginning to find that better levels of
growth globally and the slow normalisation of interest rates is benefitting
cyclicals: those stocks that are more attuned to economic growth such as
financials and industrials. We have benefitted from the share price
appreciation of US technology shares but, towards the middle of the year,
started to rotate these holdings into more diversified areas, reducing the
potential impact should they start to underperform. Our managers have not had
it all their way; smaller companies have performed far better than large and
this dynamic impacted performance in the UK and to some extent Europe where
we have limited exposure to small companies.

Europe and Asia, including China, have delivered the best absolute level of
returns during the year. We continue to believe that these markets can make
further progress but the exposure to China, through both mainland and Hong
Kong, is getting towards the maximum level that we are able to tolerate. The
region can be susceptible to higher levels of volatility and central
government control, which means we should not be overly exposed. The
deployment of gearing within the Company has been conservative all year and
ended the period at 2%. We felt more comfortable retaining cash to take
advantage of a market setback, as there have been troubling political and
macro events that could easily have resulted in investors withdrawing from
markets. In the end, no meaningful fall occurred but we continue to
cautiously recycle investments from stocks we feel are expensive into those
which offer better value.

We have made a change to the manager line-up with David Smith taking over the
management of the UK portfolio from me. David and I have worked together for
the last five years on another UK portfolio and I feel his clear focus on
companies listed in the UK will deliver returns as the future ramifications
of Brexit become clearer. The roster of fund managers working for Bankers
features the best talent within Janus Henderson and the merger over the
summer with Janus has created more resources.

The significant fall in the value of sterling following the 2016 European
referendum had a greater impact in the translation of overseas dividends
during this reported year than the previous year. The Company''s earnings rose
17% year-on-year but, as the year progressed, sterling started to strengthen
against the US dollar and next year we could see the positive effect on
earnings reverse. A key focus of stock selection in all regions is dividend
growth from our investments and this been most noticeable in the lower
yielding regions such as the US and Japan. Dividend growth is gently
accelerating in both regions and could surprise positively next year helped
by tax reforms in the US and a move to higher pay outs in Japan.

There are plenty of future trends like Brexit, fading Chinese growth and
shrinking liquidity that may make investors cautious. A negative outturn from
any one could result in a sharp fall in stock markets. However, the seeds of
a global recession or prolonged market collapse are not yet obvious and so
share prices may continue to rise. Seeking out fundamental or intrinsic value
has long been a sound investment strategy but, in recent years, they have
been forgotten in favour of growth and momentum. It seems clear to us that
inflationary pressures exist in labour markets and higher wage growth will
favour a market shift towards more careful analysis of value and the price
paid for growth. These trends should favour our portfolio.

Alex Crooke
Fund Manager

LARGEST INVESTMENTS at 31 October 2017


Company Valuation
?''000 Sales proceeds
Appreciation/ (depreciation)
?''000 Valuation
1 (1) BP 23,603 - (4,448) 743 19,898
2 (4) Apple 13,340 - - 4,918 18,258
3 (2) British American Tobacco 16,428 - - 629
4 (17) American Express 9,290 3,478 - 3,636
5 (3) American Tower 14,081 - - 1,779 15,860
6 (7) Alphabet 12,198 - - 2,257 14,455
7 (22) Facebook 8,493 2,844 - 3,035 14,372
8 # Samsung 7,439 1,517 - 5,371 14,327
9 (6) Royal Dutch Shell 12,307 - - 1,784
10 # Xylem - 11,146 - 2,663 13,809
11 (19) FedEx 9,135 2,586 - 1,967 13,688
12 (8) Comcast 12,103 - - 869 12,972
13 # Berkshire Hathaway - 11,825 - 799
14 (5) Delphi Automotive 12,746 - (4,153) 4,010
15 (14) Taiwan Semiconductor Manufacturing 10,008 - -
2,516   12,524
16 # Union Pacific - 11,931 - 418 12,349
17 (12) Fidelity National Information Services 10,275 - -
1,574   11,849
18 (16) Visa 9,363 - - 2,108 11,471
19 # Cognizant Technology Solutions 3,034 6,403 - 2,029
20 # ICON - 11,142 (4,075) 3,885 10,952
21 # Estee Lauder - 9,274 - 1,474 10,748
22 # Priceline 7,838 1,172 - 1,496 10,506
23 # Hangzhou Hikvision Digital Technology 3,891 1,597 (371)
4,953   10,070
24 # Diageo 6,083 2,491 - 1,398 9,972
25 # MasterCard 7,785 - - 2,164 9,949

----------- ----------- -----------
----------- -----------
209,440 77,406 (13,047) 58,475 332,274
====== ====== ====== ====== ======

All securities are equity investments
# Not in the top 25 last year
Convertibles and all classes of equity in any one company being treated as
one investment


?''000 Sales proceeds
?''000 Valuation
United Kingdom 276,070 62,911  (71,704) 24,122 291,399
Europe (ex UK) 136,261 44,138  (41,672) 24,807 163,534
North America 263,721 82,009  (100,020) 59,556 305,266
Japan 108,972 59,251  (48,495) 8,586 128,314
China 40,472 36,485  (29,443) 20,131 67,645
Pacific (ex Japan, China) 101,896 15,671 (13,030) 14,285
Emerging Markets 23,827 4,705  (2,217) 521 26,836
----------- ------------- ------------ -------------
951,219 305,170  (306,581) 152,008 1,101,816
====== ======= ======= ======= =======

The Board, with the assistance of Janus Henderson, has carried out a robust
assessment of the principal risks facing the Company including those that
would threaten its business model, future performance, solvency or liquidity.
In carrying out this assessment, the Board has considered the market
uncertainty arising from the result of the UK referendum to leave the
European Union. The Board has drawn up a matrix of risks facing the Company
and has put in place a schedule of investment limits and restrictions,
appropriate to the Company''s investment objectives and policy, in order to
mitigate these risks as far as practicable. The principal risks which have
been identified, and the steps taken by the Board to mitigate these as far as
practicable, and whether the Board considers the impact of such risks has
changed over the past year, are as follows:

Risk Controls and Mitigation
Investment Activity and Performance Risks
An inappropriate investment strategy (for example, in terms of asset
allocation or the level of gearing) may result in underperformance against
the Company''s various indices and the companies in its peer group.
The Board monitors investment performance at each Board meeting and regularly
reviews the extent of the Company''s borrowings.
Portfolio and Market Risks
Although the Company invests almost entirely in securities that are listed on
recognised markets, share prices may move rapidly. The companies in which
investments are made may operate unsuccessfully, or fail entirely. A fall in
the market value of the Company''s portfolio would have an adverse effect on
shareholders'' funds.
The Fund Manager seeks to maintain a diversified portfolio to mitigate
against this risk. The Board regularly reviews the portfolio, investment
activity and performance.
Tax, Legal and Regulatory Risks
A breach of Section 1158 Corporation Tax 2010 could lead to a loss of
investment trust status, resulting in capital gains realised within the
portfolio being subject to corporation tax. A breach of the UK Listing
Authority''s Rules could result in suspension of the Company''s shares, while a
breach of the Companies Act could lead to criminal proceedings. All breaches
could result in financial or reputational damage. The Company must also
ensure compliance with the Listing Rules of the New Zealand Stock Exchange.

Janus Henderson has been contracted to provide investment, company
secretarial, administration and accounting services through qualified
professionals. The Board receives internal control reports produced by Janus
Henderson on a quarterly basis, which confirm tax, legal and regulatory
compliance both in the UK and New Zealand.
Financial Risks
By its nature as an investment trust, the Company''s business activities are
exposed to market risk (including market price risk, currency risk and
interest rate risk), liquidity risk and credit and counterparty risk.

The Company has a diversified portfolio which comprises mainly investments in
large and medium-sized companies and mitigates the Company''s exposure to
liquidity risk. The Company minimises the risk of a counterparty failing to
deliver securities or cash by dealing through organisations that have
undergone rigorous due diligence by Janus Henderson. Further information on
the mitigation of financial risks is included in note 16 in the Annual
Operational Risks
Disruption to, or failure of, Janus Henderson''s accounting, dealing or
payment systems or the Depositary''s records could prevent the accurate
reporting and monitoring of the Company''s financial position. The Company is
also exposed to the operational risk that one or more of its service
providers may not provide the required level of service.
The Board monitors the services provided by Janus Henderson and its other
suppliers and receives reports on the key elements in place to provide
effective internal control.

The Board considers these risks to have remained unchanged throughout the
year under review.

The Directors have assessed the viability of the Company over a three year
period, taking account of the Company''s current position and the potential
impact of the principal risks and uncertainties documented in the Annual

The Directors conducted the assessment based on a period of three years
because they consider this to be an appropriate period over which they do not
expect there to be any significant change in the current principal risks and
adequacy of the mitigating controls in place. Also the Directors do not
envisage any change in strategy or objectives or any events that would
prevent the Company from continuing to operate over that period as the
Company''s assets are liquid, its commitments are limited and the Company
intends to continue to operate as an investment trust.

The assessment has considered the impact of the likelihood of the principal
risks and uncertainties facing the Company, in particular Investment Activity
and Performance, Portfolio and Market and Financial risks, in severe but
plausible scenarios, and the effectiveness of any mitigating controls in

The Directors also took into account the liquidity of the portfolio, the
gearing and the income stream from the portfolio in considering the viability
of the Company over the next three years and its ability to meet liabilities
as they fall due. This included, consideration of the duration of the
Company''s long term borrowings, how a breach of the gearing covenants could
impact on the Company''s net asset value and share price and how the forecast
income stream, expenditure and levels of reserves could impact on the
Company''s ability to pay dividends to shareholders over that period in line
with its current dividend policy. Whilst detailed forecasts are only made
over a shorter time frame, the nature of the Company''s business as an
investment trust means that such forecasts are equally valid to be considered
over the longer three year period as a means of assessing whether the Company
can continue in operation.

Based on their assessment, the Directors have a reasonable expectation that
the Company will be able to continue in operation and meet its liabilities as
they fall due over the next three year period. Only a substantial financial
crisis affecting the global economy could have an impact on this assessment.

The Company''s transactions with related parties in the year were with its
Directors and Janus Henderson. There have been no material transactions
between the Company and its Directors during the year other than the amounts
paid to them in respect of Directors'' remuneration for which there were no
outstanding amounts payable at the year end. In relation to the provision of
services by the Manager, other than fees payable by the Company in the
ordinary course of business and the provision of sales and marketing
services, there have been no transactions with the Manager affecting the
financial position of the Company during the year under review.

Each of the Directors confirms that, to the best of his or her knowledge:

o the Company''s financial statements, which have been prepared in accordance
with IFRSs as adopted by the EU, give a true and fair view of the assets,
liabilities, financial position and profit of the Company; and

o the Strategic Report in the Annual Report and financial statements includes
a fair review of the development and performance of the business and the
position of the Company, together with a description of the principal risks
and uncertainties that it faces.

For and on behalf of the Board

Richard Killingbeck


Year ended 31 October 2017 Year ended 31 October 2016

Notes Revenue return ?''000 Capital return ?''000 Total return
?''000 Revenue return ?''000 Capital return ?''000 Total return
Gains on investments held at fair value through profit or loss
- 152,388 152,388 - 156,527 156,527
Investment income 2 29,445 - 29,445 24,661 -
Other operating income 3 189 - 189 255 - 255
--------- --------- --------- ---------
---------   ---------
Total income  29,634 152,388 182,022 24,916 156,527 181,443
--------- --------- --------- ---------
---------   ---------
Management fees 4 (1,012) (2,362) (3,374) (959) (2,237) (3,196)
Other expenses  (963) - (963) (811) (3) (814)
--------- --------- --------- ---------
---------   ---------
Profit before finance costs and taxation  27,659 150,026
177,685 23,146 154,287 177,433
--------- --------- --------- ---------
---------   ---------
Finance costs  (916) (2,137) (3,053) (1,227) (2,863) (4,090)
--------- --------- --------- ---------
---------   ---------
Profit before taxation  26,743 147,889 174,632 21,919 151,424

Taxation 5 (1,624) - (1,624) (1,090) - (1,090)
--------- --------- --------- ---------
---------   ---------
Profit for the year and total comprehensive income  25,119
147,889 173,008 20,829 151,424 172,253
===== ====== ====== ===== ====== ======
Earnings per ordinary share - basic and diluted 6 20.49p 120.62p
141.11p 17.53p 127.45p 144.98p

The total columns of this statement represent the Statement of Comprehensive
Income, prepared in accordance with IFRSs as adopted by the European Union.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment


Year ended
31 October 2017  Called up
share capital
Share premium
Capital  redemption
Other capital

Revenue reserve

Total equity at 1 November 2016 30,986 78,541 12,489 767,317 37,405
Total comprehensive income:
Profit for the year - - - 147,889 25,119 173,008
Ordinary dividends paid - - - - (22,183)
---------- ---------- ---------- ----------
---------- ------------
Total equity at 31 October 2017 30,986 78,541 12,489 915,206 40,341
====== ====== ====== ====== ====== =======

Year ended
31 October 2016  Called up
share capital
?''000  Share premium
?''000 Capital  redemption
?''000 Other capital
Revenue reserve

Total equity at 1 November 2015 28,271 12,722 12,489 624,099
35,052 712,633
Total comprehensive income:
Profit for the year - - - 151,424  20,829
Transactions with owners, recorded directly to equity:

Issue of 10,863,453 ordinary shares 2,715  65,819 - - -
Buy-back of 1,338,509 ordinary shares into treasury - - -
(8,206) -   (8,206)
Ordinary dividends paid - - - - (18,476)
---------- ---------- ---------- ----------
---------- ----------
Total equity at 31 October 2016 30,986 78,541 12,489 767,317
37,405 926,738
====== ====== ====== ====== ====== ======


At 31 October
At 31 October

Non-current assets
Investments held at fair value through profit or loss 1,101,816
------------- ------------

Current assets
Investments held at fair value through profit or loss 23,252 21,354
Other receivables 2,660 7,817
Cash and cash equivalents 24,102 23,271
------------- -------------
50,014 52,442
------------- -------------
Total assets 1,151,830 1,003,661
------------- -------------
Current liabilities
Other payables (9,451) (12,117)
------------ ------------
(9,451) (12,117)
------------- -----------
Total assets less current liabilities 1,142,379 991,544
-------------- ------------
Non-current liabilities
Debenture stock (15,000) (15,000)
Unsecured loan notes (49,816) (49,806)
-------------- ------------
(64,816) (64,806)
-------------- -----------
Net assets 1,077,563 926,738
======== =======

Equity attributable to equity shareholders
Share capital 30,986 30,986
Share premium account 78,541 78,541
Capital redemption reserve 12,489 12,489
Retained earnings:
Other capital reserves 915,206 767,317
Revenue reserve 40,341 37,405
------------- -----------
Total equity 1,077,563 926,738
======= =======
Net asset value per ordinary share 878.9p 755.9p
======= =======


Reconciliation of profit before taxation to
net cash flow from operating activities Year ended 31 October
?''000 Year ended 31 October
Operating activities
Profit before taxation 174,632 173,343
Add back interest payable (''finance costs'') 3,043 4,090
Amortisation of loan note issue costs 10 11
Less gains on investments held at fair value through profit or loss
(152,388) (156,527)
Decrease/(increase) in accrued income 79 (454)
Decrease/(increase) in other receivables 42 (28)
(Decrease)/increase in other payables (66) 113
Purchases of investments (305,170) (215,420)
Sales of investments 306,581 199,472
Purchases of current asset investments (52,453) (45,156)
Sales of current asset investments 50,555 52,125
Decrease/(increase) in securities sold for future settlement 5,235
(Decrease)/increase in securities purchased for future settlement
(2,601) 10,168
-------------- --------------

Net cash inflow from operating activities before interest and taxation1
27,499 16,983
Interest paid (3,042) (4,102)
Taxation on investment income (1,832) (1,302)
-------------- --------------
Net cash inflow /(outflow) from operating activities 22,625 11,579

Financing activities
Equity dividends paid (net of refund of unclaimed distributions)
(22,183) (18,476)
Share issues - 9,007
Buy-back of own shares - (8,206)
Repayment of debenture stock - (10,000)
Cash received from the liquidation of Henderson Global Trust plc 9
------------- -------------
Net cash outflow from financing activities (22,174) (20,515)
------------- -------------

Increase/(decrease) in cash 451 (8,936)
Cash and cash equivalents at start of the year 23,271 31,762
Exchange movements 380 445
----------- -----------
Cash and cash equivalents at end of the year 24,102 23,271
======= =======

1 In accordance with IAS 7.31 cash inflow from dividends was ?29,372,000
(2016: ?22,932,000) and cash inflows from interest was ?191,000 (2016:


1. Accounting policies
The Bankers Investment Trust PLC is a company incorporated and
domiciled in the United Kingdom under the Companies Act 2006. The financial
statements of the Company for the year ended 31 October 2017 have been
prepared in accordance with International Financial Reporting Standards
(''IFRSs'') as adopted by the European Union and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRSs. These
comprise standards and interpretations approved by the International
Accounting Standards Board (''IASB''), together with interpretations of the
International Accounting Standards and Standing Interpretations Committee
approved by the IFRS Interpretations Committee (''IFRS IC'') that remain in
effect, to the extent that IFRSs have been adopted by the European Union.

The financial statements have been prepared on a going concern basis and on
the historical cost basis, except for the revaluation of certain financial
instruments held at fair value through profit or loss. The principal
accounting policies adopted are set in the Annual Report. These policies have
been applied consistently throughout the year. Where presentational guidance
set out in the Statement of Recommended Practice (the ''SORP'') for investment
trusts issued by the Association of Investment Companies (the ''AIC'') in
November 2014 and updated in January 2017 with consequential amendments is
consistent with the requirements of IFRSs, the Directors have sought to
prepare the financial statements on a basis consistent with the
recommendations of the SORP.

The assets of the Company consist mainly of securities that are listed and
readily realisable and, accordingly, the Directors believe that the Company
has adequate financial resources to continue in operational existence for at
least twelve months from the date of approval of the financial statements.
Having assessed these factors, the principal risks and other matters
discussed in connection with the Viability Statement, the Directors have
decided that it is appropriate for the financial statements to be prepared on
a going concern basis.

2017 2016
2. Investment income ?''000 ?''000
UK dividend income - listed 10,847 9,696
UK dividend income - special dividends 580 693
Overseas dividend income - listed 17,195 13,419
Overseas dividend income - special dividends 502 682
Property income distributions 321 171
----------- -----------
29,445 24,661
====== ======
Analysis of investment income by geographical region:
UK 12,743 11,853
Europe (ex UK) 5,220 3,268
North America 2,639 2,883
Japan 2,183 2,209
China 1,454 1,171
Pacific (ex Japan, China) 4,343 2,599
Emerging Markets 863 678
----------- -----------
29,445 24,661
====== ======

2017 2016
3. Other operating income ?''000 ?''000
Bank interest 23 86
Underwriting income 54 77
Stock lending revenue 108 83
Treasury bill interest - 3
Other income 4 6
----- -----
189 255
=== ===

At 31 October 2017 the total value of securities on loan by the
Company for stock lending purposes was ?28,166,000 (2016: ?30,184,000). The
maximum aggregate value of securities on loan at any one time during the year
ended 31 October 2017 was ?64,544,000 (2016: ?66,536,000). The Company''s
agent held collateral at 31 October 2017 with a value of ?31,366,000 (2016:
?32,154,000) in respect of securities on loan. The value of securities held
on loan, comprising Corporate and Government Bonds with a minimum market
value of 105% (2016: 105%) of the market value of any securities on loan is
reviewed on a daily basis.

2017 2016


Management fees Revenue return
?''000 Capital
?''000 Total return
?''000 Revenue return
?''000 Capital
?''000 Total
Investment management 1,012 2,362 3,374 959 2,237 3,196

------- ------- ------- ------- ------- -------
1,012 2,362 3,374 959 2,237 3,196
==== ==== ==== ==== ==== ====

A summary of the terms of the management agreement is given in the Annual

2017 2016


Taxation Revenue return
?''000 Capital
?''000 Total return
?''000 Revenue return
?''000 Capital
?''000 Total return
a) Analysis of the charge for the year

Overseas tax suffered 1,986 - 1,986 1,373 - 1,373

Overseas tax reclaimable (362) - (362) (283) -
------- ------- ------- ------- ------- -------
Total tax charge for the year 1,624 - 1,624 1,090 -
==== ==== ==== ==== ==== ====

b) Factors affecting the tax charge for the year
The differences are explained below:

2017 2016
Revenue return
?''000 Capital
?''000 Total return
?''000 Revenue return
?''000 Capital
?''000 Total return
Profit before taxation 26,743 147,889 174,632 21,919 151,424
Corporation tax for the year at an effective rate of 19.42% (2016:
20.00%)      5,193   28,720  33,913  4,384   30,285  34,669
Non taxable UK dividends (2,229) - (2,229) (2,046) -
Overseas income and non taxable scrip dividends  (3,239) -
(3,239) (2,617) -   (2,617)
Overseas withholding tax suffered 1,624 - 1,624 1,090
-   1,090
Realised gains on non-reporting offshore funds - 555 555
-   -   -
Excess management expenses and loan relationships 275 319
594   279   1,021   1,300
Capital gains not subject to tax - (29,594)
(29,594) - (31,306) (31,306)
-------- ----------- ----------- --------
-----------   -----------
1,624 - 1,624 1,090 - 1,090
===== ====== ===== ===== ====== =====

c) Provision for deferred taxation
No provision for deferred taxation has been made in the current year or in
the prior year.

The Company has not provided for deferred tax on capital gains or losses
arising on the revaluation or disposal of investments as it is exempt from
tax on these items because of its status as an investment trust, which it
intends to maintain for the foreseeable future.

d) Factors that may affect future tax charges
The Company has not recognised a deferred tax asset totalling ?7,201,000
(2016: ?6,257,000) based on a prospective corporation tax rate of 17.0%
(2016: 17.0%). The deferred tax asset arises as a result of having unutilised
management expenses and unutilised non-trade loan relationship deficits.
These expenses will only be utilised, to any material extent, if the Company
has profits chargeable to corporation tax in the future because changes are
made either to the tax treatment of the capital gains made by investment
trusts or to the Company''s investment profile which require them to be used.

6. Earnings per ordinary share
The total earnings per ordinary share is based on the net profit
attributable to the ordinary shares of ?173,008,000 (2016: ?172,253,000) and
on 122,606,783 ordinary shares (2016: 118,813,485), being the weighted
average number of shares in issue during the year.

The total earnings can be further analysed as follows:

2017 2016
?''000 ?''000
Revenue profit 25,119 20,829
Capital profit 147,889 151,424
---------------- ----------------
Profit for the year 173,008 172,253
---------------- ----------------
Weighted average number of ordinary shares 122,606,783
----------------- -----------------
Revenue earnings per ordinary share 20.49p 17.53p
Capital earnings per ordinary share 120.62p 127.45p
------------- -------------
Earnings per ordinary share  141.11p  144.98p
======= =======

The Company does not have any dilutive securities, therefore basic
and diluted earnings are the same.

Called up share capital Number of
shares entitled
to dividend Total n
Total number
of shares
Nominal value
of shares
Ordinary shares of 25p each
At 1 November 2016 122,606,783 123,945,292 30,986
----------------- ----------------- -----------
At 31 October 2017 122,606,783 123,945,292 30,986
----------------- ---------------- -----------

Number of
shares entitled
to dividend Total n
of shares
Nominal value
of shares
Ordinary shares of 25p each
At 1 November 2015 113,081,839 113,081,839 28,271
New shares issued 10,863,453 10,863,453 2,715
Shares bought back in the year (1,338,509) - -
----------------- ----------------- -----------
At 31 October 2016 122,606,783 123,945,292 30,986
----------------- ---------------- -----------

During the year, no ordinary shares were issued or purchased. In the
year ended 31 October 2016, 10,863,453 shares were issued for net proceeds of
?68,534,000 and 1,338,509 shares were purchased for holding in treasury at a
cost of ?8,206,000.

Since the year end, the Company has not issued any ordinary shares or
purchased shares for cancellation or to be held in treasury.

8. Net asset value per ordinary share
The net asset value per ordinary share is based on net assets
attributable to ordinary shares of ?1,077,563,000 (2016: ?926,738,000) and on
122,606,783 ordinary shares in issue at 31 October 2017 (2016: 122,606,783).
The Company has no securities in issue that could dilute the net asset value
per ordinary share.

The movements during the year in net assets attributable to the ordinary
shares were as follows:
2017 2016
?''000 ?''000
Net assets attributable to ordinary shares at start of year
926,738 712,633
Total net profit on ordinary activities after taxation 173,008
Dividends paid (22,183) (18,476)
Issue of ordinary shares - 68,534
Purchase of ordinary shares - (8,206)
------------- -----------
Net assets attributable to ordinary shares at end of year
1,077,563 926,738
======= ======

9. Dividend
A final dividend of 4.80p per share, if approved by shareholders at
the Annual General Meeting, will be paid on 28 February 2018 to shareholders
on the register on 26 January 2018. The shares go ex-dividend on 25 January
2018. This final dividend, together with the three interim dividends already
paid, brings the total dividend for the year to 18.6p.

10. 2017 Financial Information
The figures and financial information for the year ended 31 October
2017 are extracted from the Company''s annual financial statements for that
period and do not constitute statutory accounts.  The Company''s annual
financial statements for the year to 31 October 2017 have been audited but
have not yet been delivered to the Registrar of Companies.  The Auditor''s
report on the 2017 annual financial statements was unqualified, did not
include a reference to any matter to which the Auditor drew attention without
qualifying the report, and did not contain any statements under Section 498
of the Companies Act 2006.

11. 2016 Financial Information
The figures and financial information for the year ended 31 October
2016 are compiled from an extract of the published accounts for that year and
do not constitute statutory accounts.  Those accounts have been delivered to
the Registrar of Companies and included the report of the Auditor which was
unqualified and did not contain a statement under Sections 498(2) or 498(3)
of the Companies Act 2006.

12. Annual Report
Copies of the Annual Report will be posted to shareholders by the end
of January 2018 and will be available on the Company''s website
( or in hard copy format from the Registered
Office, 201 Bishopsgate, London EC2M 3AE.

13. Annual General Meeting
The Annual General Meeting will be held on Wednesday 21 February 2018 at 12
noon at Trinity House, London, EC3N 4DH.

For further information contact:

Alex Crooke
Fund Manager
The Bankers Investment Trust PLC
Telephone: 020 7818 4447
Richard Killingbeck
The Bankers Investment Trust PLC
Telephone: 020 7818 4233
James de Sausmarez
Director and Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 3349 Sarah Gibbons-Cook
Investor Relations and PR Manager
Janus Henderson Investors
Telephone: 020 7818 3198

Neither the contents of the Company''s website nor the contents of any website
accessible from hyperlinks on the Company''s website (or any other website) is
incorporated into, or forms part of, this announcement.
End CA:00313053 For:BIT    Type:ANNREP     Time:2018-01-16 08:30:24
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The Bankers Investment Trust Plc
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