RNS Number:3475K
Dresdner RCM Endwmt PlcyTst 2003PLC
24 April 2003
For immediate release 24th April 2003
DRESDNER RCM ENDOWMENT POLICY TRUST 2003 plc
PRELIMINARY ANNOUNCEMENT OF RESULTS
For the year ended 31st March 2003
Investment Review
A summary of the results for the year ended 31st March 2003 is set out overleaf.
The net asset value per ordinary share at 31st March 2003 was 210.8p, compared
to 221.3p per Ordinary Share at 31st March 2002. This is a decrease of 4.7% over
the last twelve months. The FTSE All-Share Index fell by 32.1% over the same
period. Calculations of net asset value are based on data extracted from recent
open market transactions at auction.
The projected final net asset value at 31st October 2003 is 215.4p per share
calculated using the principal bases and assumptions set out below which, inter
alia, assume no further changes in life office bonus rates and that no further
demutualisation proceeds are received. If bonuses were to fall immediately by
20%, the projected final net asset value per share is projected to be 210.9p.
These illustrations take into account an estimate for winding-up expenses and
are given in order to provide an indication of the sensitivity of the projected
final net asset value to bonus rate changes, and should not be taken as a
forecast of any particular degree of change in bonus rates.
The Company currently has investments in fixed interest securities and cash
amounting to #34.9m and with-profits policies valued at #24.9 million from a
total of 40 with-profits life funds. During the twelve months to 31st March 2003
the Company received proceeds of policy maturities amounting to #25.1 million.
The average annualised return on these policies was 9.1% since purchase. The
proceeds have in the main been invested in short term fixed interest securities.
Bonus rate declarations over the period have continued to reflect the impact of
falling equity markets and rate reductions have been severe. However, the
Company's exposure to these falling payouts has diminished over the year to 31st
March 2003 as a large proportion of the policy portfolio has matured (amounting
to proceeds of #25.1m). Compared to last year, the Company has experienced a net
overall decrease averaged across the portfolio, equivalent to equal reductions
in both reversionary and terminal bonuses of around 40%. While global equity
markets remain uncertain, the increasing proportion of fixed interest securities
and cash in the portfolio, plus the smoothing of returns for the remaining
with-profits policies as they mature, should continue to reduce the volatility
experienced by the Company relative to other equity-related investments.
The Company now has only six months before its scheduled winding up on 31st
October 2003. Details of proposals for a tax efficient roll-over option will be
sent to shareholders later this year.
Earnings and Dividend
The Company is managed with the objective of providing returns to investors
entirely in the form of capital growth. The continuing deficit on the Revenue
Reserve is consistent with this objective. Consequently, no dividend will be
payable.
Share Buy Backs
During the period under review the Company repurchased 963,000 ordinary shares
for cancellation.
Status
The Company operates as an approved investment trust within the meaning of
Section 842 of the Income and Corporation Taxes Act 1988. The Company has been
approved by the Inland Revenue as an approved Investment Trust Company for the
year ended 31st March 2002. Such approval is expected to be granted for the year
ended 31st March 2003. The Company is not a close company.
Annual General Meeting
The Annual General Meeting will be held on Wednesday 23rd July 2003 at 12:45pm.
10 Fenchurch Street By Order of the Board
London EC3M 3LB P W I Ingram
Company Secretary
PRINCIPAL BASES AND ASSUMPTIONS USED IN PROJECTING THE FINAL NET ASSET VALUE
1) The final net asset value has been calculated as at 31st October 2003
on the basis that all policies are held to maturity and no death claims
arise.
2) The latest reversionary and or demutualisation benefits terminal
bonus rates declared at 31st March 2003 continue to apply until maturity.
3) The estimated mid-market gross redemption yields as at 31st March
2003, for policies of differing remaining terms, are assumed to remain
unchanged.
4) Annual expenses are assumed to be in line with the estimates
originally published in the listing particulars for DEPT 2003 and future
annual inflation is assumed to be 3%. An allowance of #600,000 has been made
for winding-up expenses. Interest rates over the Company's life are assumed
to be consistent with the shape of the swap yield curve at 31st March 2003.
DRESDNER RCM ENDOWMENT POLICY TRUST 2003 plc
SUMMARY OF UNAUDITED RESULTS
For the year ended 31st March 2003
STATEMENT OF TOTAL RETURN -UNAUDITED *
For the year ended 31st March 2003 Revenue Capital Total
# # #
Net losses on investments - (3,833,907) (3,833,907)
Income from investments 1,328,232 - 1,328,232
Other income 374,181 - 374,181
Management and advisory fees (943,431) - (943,431)
Expenses of administration (155,609) - (155,609)
Return on ordinary activities 603,373 (3,833,907) (3,230,534)
before finance costs and taxation
Finance costs of borrowings (71) - (71)
Return on ordinary activities before taxation 603,302 (3,833,907) (3,230,605)
Taxation - - -
Transfer to (from) reserves 603,302 (3,833,907) (3,230,605)
Return per Ordinary Share 2.04p (12.97)p (10.93)p
*The revenue column of this statement is the profit and loss account of the Company.
The return per Ordinary Share is based on a weighted average number of shares in issue of 29,548,993
BALANCE SHEET - UNAUDITED
as at 31st March 2003
#
Valuation of Investments 58,134,875
Net Current Assets 3,099,987
Total Net Assets 61,234,862
Called up Share Capital 2,904,625
Share Premium Account 27,015,040
Capital Redemption Reserve 96,300
Capital Reserves :Realised 28,170,053
:Unrealised 9,925,108
Revenue Reserve (6,876,264)
Equity Shareholders' Funds 61,234,862
Net asset value per Ordinary Share 210.8p
The net asset value is based on 29,046,248 Ordinary Shares in issue
STATEMENT OF TOTAL RETURN*
For the year ended 31st March 2002 Revenue Capital Total
# # #
Net gains on investments - 431,430 431,430
Income from investments 365,732 - 365,732
Other income 22,748 - 22,748
Management and advisory fees (1,016,646) - (1,016,646)
Expenses of administration (140,191) - (140,191)
Return on ordinary activities (768,357) 431,430 (336,927)
before finance costs and taxation
Finance costs of borrowings (7,245) - (7,245)
Return on ordinary activities before taxation (775,602) 431,430 (344,172)
Taxation - - -
Transfer (from) to reserves (775,602) 431,430 (344,172)
Return per Ordinary Share (2.59)p 1.44p (1.15)p
*The revenue column of this statement is the profit and loss account of the Company.
The return per Ordinary Share is based on 30,009,248 Ordinary Shares in issue
BALANCE SHEET
As at 31st March 2002 #
Valuation of Investments 65,986,237
Net Current Assets 438,838
Total Net Assets 66,425,075
Called up Share Capital 3,000,925
Share Premium Account 27,015,040
Capital Redemption Reserve -
Capital Reserves :Realised 17,091,375
:Unrealised 26,797,301
Revenue Reserve (7,479,566)
Equity Shareholders' Funds 66,425,075
Net asset value per Ordinary Share 221.3p
The net asset value is based on 30,009,248 Ordinary Shares in issue.
CASH FLOW STATEMENT
For the two years ended 31st March 2003 (unaudited) and 2002 (audited)
2003 2002
# #
Net cash outflow from operating activities (556,916) (843,751)
Servicing of Finance
Interest paid (71) (9,738)
Taxation 1,301
Income tax repaid 3,490
Investing activities
Acquisition of investments (24,007,700) (10,223,858)
Receipts from demutualisations - 335,643
Disposal of investments 27,428,544 10,608,054
Net cash inflow from financial investment 3,420,344 719,839
Net cash inflow (outflow) before financing 2,867,347 (132,349)
Financing -
Purchase of Ordinary Shares for cancellation (1,959,608)
Increase (decrease) in cash 907,739 (132,349)
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 31st March 2003 or 31st March
2002. The financial information for the year ended 31st March 2002 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985. The statutory accounts for the year ended 31st March
2003 will be finalised on the basis of the financial information presented by
the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
TWENTY LARGEST HOLDINGS
BY LIFE OFFICE
AS AT 31st MARCH 2003 -UNAUDITED
Value of Policies % of
#000s Total Investments
Standard Life 7,688 13.2
AVIVA (Norwich Union) 2,182 3.8
Legal & General 1,939 3.3
Scottish Widows 1,456 2.5
Prudential 1,337 2.3
Royal & Sun Alliance (Royal Life) 1,067 1.8
Prudential (Scottish Amicable) 1,048 1.8
Clerical Medical and General 921 1.6
Guardian Assurance 797 1.4
Scottish Provident 777 1.3
AXA Equity & Law 570 1.0
Friends Provident 450 0.8
AVIVA (Commercial Union) 389 0.7
Colonial Mutual 373 0.6
Scottish Life 365 0.6
Alba Life (Crusader) 332 0.6
Scottish Mutual 308 0.5
National Mutual Life 307 0.5
AVIVA (General Accident) 234 0.4
Friends Provident (London and Manchester) 202 0.4
Total of twenty largest holdings 22,742 39.1
Holdings in other offices 2,154 3.7
Total holding of endowment policies 24,896 42.8
LISTED EQUITY HOLDINGS
AS AT 31st MARCH 2003 - UNAUDITED
#'000s % of
Total Investments
AVIVA 63 0.1
Friends Provident 98 0.2
161 0.3
FIXED INTEREST HOLDINGS
AS AT 31st MARCH 2003 - UNAUDITED
#'000s % of
Total Investments
Abbey National Treasury 8% # BD 2/4/03 1,151 2.0
KFW International 6% 27/10/03 7,727 13.3
Treasury 5% 06/2004 10,020 17.2
Treasury 6.5% 12/2003 10,180 17.5
DRSEPT Zero Coupon Uns Loan Notes 4,000 6.9
33,078 56.9
Total Invested Funds 58,135 100.0
For further information, please contact
Simon White, Allianz Dresdner Asset Management (UK) Ltd
Tel: 020 7475 7106
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEDFLLSDSEDL
