RNS Number:9144K
Henderson Far East Income Trust PLC
23 October 2006
Page 1 of 15
23 October 2006
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
* Board have agreed to recommend proposals for a change of domicile to
Jersey.
* Positive total return of 8.3% for the year ended 31 August 2006.
* Earnings per share of 10.9p were achieved compared with the previous
year's level of 10.2p.
* Total ordinary dividends of 9.00p per share declared, compared to
8.60p per share for the previous financial year.
Extracts from the Chairman's Statement
I am pleased to report that once more we achieved record levels of revenue,
reflecting the ongoing growth in the dividend payments of Asian companies. The
group's gross revenues rose to #13,820,000 compared to #12,733,000 in the
previous year, a gain of 8.5%. Earnings per share of 10.9p were achieved
compared with 10.2p for the previous year. There was a positive total return of
8.3% for the year adding back income earned. This represents the fifth
consecutive year in which our net asset value has grown and dividends have also
grown steadily over this period.
Proposal to re-domicile the company in Jersey
On 13 July 2006, the Board announced that it was considering proposals to effect
a change in domicile to Jersey in order to achieve tax efficiencies that would
result in an increase in the amount of income available for distribution to
shareholders. The Board also announced that, following a process of
consultation with the company's principal shareholders and subject to market
conditions at the relevant time, the Board would bring forward for the approval
of the company's shareholders proposals to effect this. This change would also
have other benefits, notably an improvement in investment flexibility.
We have now completed that work and decided that it is in the best interests of
shareholders to proceed to the next step. Accordingly, a circular, together with
a prospectus for the new Jersey domiciled company, will be sent to shareholders
with the annual report and accounts in early November, which will include the
Board's recommendation that shareholders vote in favour of the proposals. Two
Extraordinary General Meetings are required to effect the proposals with the
first on Thursday 7 December 2006. The second will take place immediately prior
to the company's Annual General Meeting on Friday 15 December 2006. Please note
that the agenda for the Annual General Meeting has been prepared on a going
concern basis in case the proposals are not approved.
The proposals involve the incorporation of a new Jersey domiciled company to
which the assets of the company will be transferred and shareholders will
receive one new share for every existing share that they hold. This new company
will need to have a majority of directors who are personally domiciled offshore,
so it has been decided that only John Russell, who will be the Chairman, and
Simon Meredith Hardy should join the new Board and will provide continuity. They
will be joined by three new directors who are domiciled offshore. Michael Watt
will be retained as a consultant to the new board.
Full details of these proposals will be contained in the circular and
prospectus.
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Page 2 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Extracts from the Chairman's Statement, continued
Management
In February 2007, Michael Watt will be retiring from his position at Henderson
Global Investors. Michael has been the company's appointed Fund Manager since
1990 and I should like to thank him for the skill with which he has managed the
company's affairs during that time. In order to ensure a smooth transfer of
responsibilities and continuity of management, Michael will remain involved
after retirement either as a consultant to the Jersey company or as a director
of this company if the proposals are not approved.
I am pleased to report that Michael's successor will be Michael Kerley, who was
appointed as Deputy Manager in April 2006, but has been working closely with
Michael Watt for the past year. Michael Kerley has 13 years of relevant fund
management experience.
Dividends
A fourth interim dividend of 2.30p per share has been declared in line with our
previous forecast. Dividends for the year totalled 9.00p per share compared
with 8.60p per share in the previous year, a rise of 4.7%.
Investment strategy
Our investment strategy continues to focus on attractively valued companies
offering sound investment potential and above average yields. The portfolio has
remained relatively risk averse which has helped to achieve our income
objectives. This cautious stance reflected our view that the global economy
would slow and markets generally were not taking sufficient account of potential
risks.
Outlook
Stock markets have rallied over recent months as investors took heart from the
decision to hold US interest rates stable before too much damage was done to its
economy. A timely fall in oil and other commodity prices also contributed to
investors' hopes that inflationary pressures had been contained. Risk premiums
have narrowed again, particularly in emerging markets where investor sentiment
has become excessively optimistic. We believe growth will slow and inflation
will remain a concern over the year ahead. As a result, defensive domestic
stocks continue to be favoured over export oriented sectors and we are
overweight the South East Asia region where growth seems more secure and is less
directly linked to the US economy. Longer term, Asia's growing importance
within the world economy will continue and, as its markets and its citizens
mature, demand for income oriented stocks will surely grow.
Sir Victor Garland
23 October 2006
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Page 3 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Consolidated Income Statement
for the year ended 31 August 2006
Year ended 31 August 2005
Year ended 31 August 2006 Restated (note 5)
Revenue Capital Revenue Capital
return return Total return return Total
#'000 #'000 #'000 #'000 #'000 #'000
Investment income 13,648 - 13,648 12,556 - 12,556
Other income 172 - 172 177 - 177
Gains on investments held at fair
value through profit or loss - 5,495 5,495 - 21,156 21,156
--------- ---------- ----------- ---------- ---------- ----------
Total income 13,820 5,495 19,315 12,733 21,156 33,889
Expenses
Management fees (1,036) (518) (1,554) (975) (488) (1,463)
Other operating expenses (499) - (499) (423) - (423)
--------- ---------- ---------- --------- ---------- ---------
Profit before finance costs and 12,285 4,977 17,262 11,335 20,668 32,003
taxation
Finance costs (35) (35) (70) (22) (22) (44)
--------- -------- --------- --------- --------- ---------
Profit before taxation 12,250 4,942 17,192 11,313 20,646 31,959
Taxation (3,828) 166 (3,662) (3,876) 184 (3,692)
--------- --------- ---------- -------- --------- ---------
Profit for the year 8,422 5,108 13,530 7,437 20,830 28,267
===== ====== ====== ===== ===== =====
Earnings per ordinary share (note 2) 10.86p 6.59p 17.45p 10.22p 28.63p 38.85p
====== ====== ====== ===== ===== =====
The total column of this statement represents the Consolidated Income Statement,
prepared in accordance with International Finanical Reporting Standards.
The revenue return and capital return columns are supplementary to this and are
prepared under guidance published by the Association of Investment Companies.
All items in the above statement derive from continuing operations.
All income is attributable to the equity holders of Henderson Far East Income
Trust plc, the parent company. There are no minority interests.
The company has no recognised gains or losses other than those recognised in the
Income Statement above.
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Page 4 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Consolidated and Parent Company Statements of Changes in Equity
for the year ended 31 August 2006
Consolidated
Year ended 31 August 2006
Called up Capital Other
share Share redemption capital Revenue
capital premium reserve reserves reserve Total
#'000 #'000 #'000 #'000 #'000 #'000
Balance at 31 August 2005
(as restated) 18,994 41,235 50 91,419 8,264 159,962
Issue of ordinary
shares 412 3,322 - - - 3,734
Profit for the year - - - 5,108 8,422 13,530
Ordinary dividends
paid - - - - (6,792) (6,792)
---------- ---------- --------- ---------- --------- ----------
Balance at 31 August 2006 19,406 44,557 50 96,527 9,894 170,434
====== ====== ===== ====== ===== ======
Consolidated
Year ended 31 August 2005
Called up Capital Other
share Share redemption capital Revenue
capital premium reserve reserves reserve Total
#'000 #'000 #'000 #'000 #'000 #'000
Balance at 31 August 2004
(as restated) 16,477 23,407 50 70,589 6,797 117,320
Issue of ordinary
shares 2,517 17,828 - - - 20,345
Profit for the year - - - 20,830 7,437 28,267
Ordinary dividends
paid - - - - (5,970) (5,970)
--------- --------- ---------- ---------- ---------- ----------
Balance at 31 August 2005 18,994 41,235 50 91,419 8,264 159,962
===== ====== ====== ====== ===== ======
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Page 5 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Consolidated and Parent Company Statements of Changes in Equity (continued)
for the year ended 31 August 2006
Company
Year ended 31 August 2006
Called up Capital Other
share Share redemption capital Revenue
capital premium reserve reserves reserve Total
#'000 #'000 #'000 #'000 #'000 #'000
Balance at 31 August 2005
(as restated) 18,994 41,235 50 92,253 7,430 159,962
Issue of ordinary
shares 412 3,322 - - - 3,734
Profit for the year - - - 5,109 8,421 13,530
Ordinary dividends
paid - - - - (6,792) (6,792)
---------- ----------- ---------- ---------- ---------- ----------
Balance at 31 August 2006 19,406 44,557 50 97,362 9,059 170,434
====== ====== ====== ====== ===== ======
Company
Year ended 31 August 2005
Called up Capital Other
share Share redemption capital Revenue
capital premium reserve reserves reserve Total
#'000 #'000 #'000 #'000 #'000 #'000
Balance at 31 August 2004
(as restated) 16,477 23,407 50 71,418 5,968 117,320
Issue of ordinary
shares 2,517 17,828 - - - 20,345
Profit for the year - - - 20,835 7,432 28,267
Ordinary dividends
paid - - - - (5,970) (5,970)
---------- --------- ---------- ---------- ---------- ----------
Balance at 31 August 2005 18,994 41,235 50 92,253 7,430 159,962
====== ====== ====== ====== ===== ======
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Page 6 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Consolidated and Parent Company Balance Sheets
at 31 August 2006
Consolidated Company
2005 2005
Consolidated Restated Company Restated
2006 (note 5) 2006 (note 5)
#'000 #'000 #'000 #'000
Non current assets
Investments held at fair value through
profit or loss 162,015 156,354 162,850 157,188
----------- ----------- ----------- -----------
Current assets
Other receivables 2,460 4,595 2,460 4,595
Cash and cash equivalents 8,938 4,717 8,807 4,589
---------- ---------- ---------- ----------
11,398 9,312 11,267 9,184
---------- ---------- --------- ----------
Total assets 173,413 165,666 174,117 166,372
---------- ---------- ---------- ----------
Current liabilities
Other payables 2,448 5,310 3,152 6,016
Bank loans and overdrafts 137 119 137 119
---------- ---------- ---------- ----------
2,585 5,429 3,289 6,135
Provision for liabilities and charges 394 275 394 275
---------- ---------- ---------- ----------
Net assets 170,434 159,962 170,434 159,962
====== ====== ====== ======
Equity attributable to equity shareholders
Called up share capital 19,406 18,994 19,406 18,994
Share premium 44,557 41,235 44,557 41,235
Capital redemption reserve 50 50 50 50
Other capital reserves 96,527 91,419 97,362 92,253
Revenue reserve 9,894 8,264 9,059 7,430
---------- ----------- ----------- ----------
Total equity 170,434 159,962 170,434 159,962
====== ====== ====== ======
Net asset value per ordinary share (note 4) 219.57p 210.54p 219.57p 210.54p
====== ====== ====== ======
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Page 7 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Consolidated and Parent Company Cash Flow Statements
for the year ended 31 August 2006
Year ended
Year ended 31 August 2005
31 August 2006 Restated (note 5)
Consolidated Company Consolidated Company
#'000 #'000 #'000 #'000
Operating activities
Profit before taxation 17,192 17,192 31,959 31,959
Add back interest paid 70 70 44 44
Less gains on investments held at fair
value through profit or loss (5,495) (5,496) (21,156) (21,161)
Less net purchases of investments held at fair
value though profit or loss (59) (59) (23,501) (23,501)
Increase in other receivables (289) (289) (101) (101)
Decrease/(increase) in amounts
due from brokers 2,497 2,497 (3,039) (3,039)
(Decrease)/increase in other payables (821) (822) 834 834
(Decrease)/increase in amounts
due to brokers (2,160) (2,160) 3,204 3,204
---------- --------- --------- ---------
Net cash inflow/(outflow) from operating
activities before interest and taxation 10,935 10,933 (11,756) (11,761)
Interest paid (70) (70) (44) (44)
Corporation tax paid (2,227) (2,227) (2,097) (2,097)
Taxation on investment income (1,269) (1,270) (1,485) (1,485)
--------- ---------- ---------- ----------
Net cash inflow/(outflow) from operating
activities 7,369 7,366 (15,382) (15,387)
===== ===== ===== =====
Financing activities
Equity dividends paid (6,792) (6,792) (5,969) (5,969)
Issue of shares 3,734 3,734 20,345 20,345
--------- -------- ---------- -----------
Net cash used in financing (3,058) (3,058) 14,376 14,376
===== ===== ====== ======
Increase/(decrease) in cash and
cash equivalents 4,311 4,308 (1,006) (1,011)
Cash and cash equivalents at the
start of the year 4,598 4,470 5,505 5,382
Exchange movements (108) (108) 99 99
--------- -------- --------- -----------
Cash and cash equivalents at the end of the
year (including bank overdrafts) 8,801 8,670 4,598 4,470
===== ===== ====== ======
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Page 8 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Notes to the Accounts
1. Accounting Policies
(a) Basis of preparation
The consolidated financial information for the year ended 31 August 2006 has been prepared in
accordance with International Financial Reporting Standards ("IFRS"). 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 International Accounting Standards Committee ("IASC") that remain in effect, to the
extent that IFRS have been adopted by the European Union.
The principal accounting policies adopted are set out below. 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 December 2005 is consistent with the
requirements of IFRS, the directors have sought to prepare the financial statements on a basis
consistent with the recommendations of the SORP.
The financial statements of the subsidiary are prepared for the same reporting year as the parent
company using consistent accounting policies. All inter-company balances and transactions
including unrealised profits arising from them are eliminated.
The financial statements are presented in sterling and all values are rounded to the nearest
thousand pounds (#'000) except where otherwise indicated.
(b) First time adoption of IFRS
The date of transition to IFRS for the Group is 1 September 2005. The IFRS accounting
policies set out herein have been applied retrospectively to the opening balance sheet
as at 1 September 2004 and all subsequent periods. The disclosures required by
First-time Adoption of International Financial Reporting Standards ("IFRS 1")
concerning the transition from UK GAAP to IFRS are given in notes 5 and 6.
(c) Basis of consolidation
The group accounts consolidate the accounts of the company and of its wholly owned
subsidiary undertaking, TRA Finance Company Limited.
(d) Investments held at fair value through profit or loss
All investments are designated upon initial recognition as held at fair value through
profit or loss. Assets are de-recognised at the trade date of the disposal. Proceeds
will be measured at fair value, which will be regarded as the proceeds of sale less
any transaction costs. The fair value of the financial instruments is based on their
quoted bid price at the balance sheet date, without deduction of the estimated future
selling costs. Unquoted investments are valued by the directors using primary
valuation techniques such as earnings multiples, recent transactions and net assets.
Changes in the fair value of investments held at fair value through profit or loss and
gains and losses on disposal are recognised in the Income Statement as "Gains or
losses on investments held at fair value through profit or loss". Also included
within this caption are transaction costs in relation to the purchase or sale of
investments, including the difference between the purchase price of an investment and
its bid price at the date of purchase.
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Page 9 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Notes to the Accounts, continued
(e) Presentation of Income Statement
In order to better reflect the activities of an investment trust company, and in accordance
with guidance issued by the Association of Investment Companies ("AIC"), supplementary
information which analyses the Income Statement between items of a revenue and capital nature
has been presented alongside the Income Statement. In accordance with the company's status as
a UK investment company under section 266 of the Companies Act 1985, net capital returns may
not be distributed by way of dividend. Additionally, the net revenue is the measure the
directors believe appropriate in assessing the group's compliance with certain requirements
set out in section 842 of the Income and Corporation Taxes Act 1988.
(f) Income
Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend
basis. Special dividends are treated as revenue return or as capital return, depending on the
facts of each individual case. Income from fixed interest debt securities is recognised using
the effective interest rate method. The trading profits of the subsidiary undertaking, which
represent realised gains and losses on the sale of current asset investments, are dealt with in
the revenue column of the Income Statement as a revenue item. Bank deposit interest is accounted
for on an accruals basis.
(g) Expenses
All administration expenses and interest payable are accounted for on an accruals basis.
Expenses which are incidental to the purchase or sale of an investment are charged to the
capital column of the Income Statement and allocated to other capital reserves. On the basis
of the Board's long term split of returns equally between capital gains and income, the
company charges 50% of its finance costs and management fee (insofar as they relate to the
maintenance and enhancement of the value of investments) to capital.
Purchase and sale transaction costs for the year ended 31 August 2006 were #561,000 and
#714,000 respectively (2005: transaction costs of purchases #568,000; transaction costs of
sales #669,000). These comprise mainly stamp duty and commission.
(h) Taxation
Deferred tax is accounted for within provisions for liabilities and charges and is provided
on all taxable differences that have originated but not reversed by the balance sheet date,
other than those differences regarded as permanent. Any liability to deferred tax is
provided at the average rate of tax expected to apply, based on tax law that had been enacted
or substantially enacted by the balance sheet date. A deferred tax asset is recognised only
to the extent that it is considered probable that sufficient taxable profits will be
available to allow the deferred tax benefit of that asset to be utilised. Deferred tax
assets and liabilities are not discounted to reflect the time value of money.
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Page 10 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Notes to the Accounts, continued
(i) Foreign currency
For the purposes of the consolidated accounts, the results and financial position of each entity
is expressed in pounds sterling, which is the functional currency of the company and the
presentational currency of the group. Sterling is the functional currency because it is the
currency of the primary economic environment in which the group operates. The United Kingdom is
the company's country of incorporation and the primary location of the shareholder base.
Sterling is the currency by which dividends are returned to shareholders, share buy-backs and
share issues are conducted and is the cost base of the company.
Transactions recorded in overseas currencies during the year are translated into sterling at the
appropriate daily exchange rates. Assets and liabilities denominated in overseas currencies at
the balance sheet date are translated into sterling at the exchange rates ruling at that date.
(j) Cash and cash equivalents
Cash comprises cash in hand and demand deposits. Cash equivalents are short term, highly liquid
investments that are readily convertible to known amounts of cash and that are subject to
insignificant risks of changes in value.
(k) Bank borrowings
Interest-bearing bank loans and overdrafts are recorded as the proceeds received, net of direct
issue costs. Finance charges, including premiums payable on settlement or redemption and direct
issue costs, are accounted for on an accruals basis in the Income Statement using the effective
interest rate method and are added to the carrying amount of the instrument to the extent that they
are not settled in the period in which they arise.
2. Earnings per ordinary share
The earnings per ordinary share figure is based on the net gain for the year of #13,530,000 (2005:
#28,267,000 as restated) and on the weighted average number of ordinary shares in issue during the year
of 77,518,762 (2005: 72,768,034).
The earnings per ordinary share figure detailed above can be further analysed between revenue and
capital, as below.
The company has no securities in issue that could dilute the return per ordinary share. Therefore the
basic and diluted earnings per ordinary share are the same.
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Page 11 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Notes to the Accounts, continued
2. Earnings per ordinary share, continued
31 August 2005
31 August Restated
2006 (note 5)
#'000 #'000
Net revenue gain 8,422 7,437
Net capital gain 5,108 20,830
-------- --------
Net total gain 13,530 28,267
===== =====
Weighted average number of ordinary
shares in issue during the year 77,518,762 72,768,034
pence pence
Revenue earnings per ordinary share 10.86 10.22
Capital earnings per ordinary share 6.59 28.63
--------- --------
Total earnings per ordinary share 17.45 38.85
===== =====
3. Ordinary share capital
At 31 August 2006 there were 77,622,619 ordinary shares in issue (2005: 75,976,927). During the
year ended 31 August 2006 the company issued 1,645,692 ordinary shares (2005: 10,068,357).
4. Net asset value per share
The net asset value per ordinary share of 219.57p (2005:210.54p as restated) is based on the net
assets attributed to the ordinary shares of #170,434,000 (2005: #159,962,000 as restated) and on
the 77,622,619 ordinary shares in issue at 31 August 2006 (2005: 75,976,927).
The movements during the year in assets attributable to the ordinary shares were as follows:
#'000
Total net assets at 1 September 2005 (as restated) 159,962
Net return on ordinary activities after tax 13,530
Dividends paid (6,792)
Issue of 1,645,692 shares 3,734
----------
Total net assets at 31 August 2006 170,434
======
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Page 12 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Notes to the Accounts, continued
5. (a) Restatement of balances as at and for the year ended 31 August 2005
As at 1 September 2005 the company adopted International Financial Reporting Standards. In
accordance with IFRS 1 (First-time Adoption of International Financial Reporting Standards) the
following is a reconciliation of the results as at and for the year ended 31 August 2005, previously
reported under the applicable UK Accounting Standards and the SORP, to the restated IFRS results.
Consolidated Company
Previously Previously
reported 31 Restated reported Restated
August 31 August 31 August 31 August
2005 Adjustments 2005 2005 Adjustments 2005
#'000 #'000 #'000 #'000 #'000 #'000
Fixed assets
Investments (note 1) 156,853 (499) 156,354 157,687 (499) 157,188
Current assets 9,312 - 9,312 9,184 - 9,184
Creditors: amounts falling
due within one year
(note 2) (8,771) 3,342 (5,429) (9,477) 3,342 (6,135)
---------- ---------- ---------- ---------- ---------- ----------
Total assets less current
liabilities 157,394 2,843 160,237 157,394 2,843 160,237
Provisions for liabilities
and charges (275) - (275) (275) - (275)
---------- ---------- ---------- ---------- ---------- ----------
157,119 2,843 159,962 157,119 2,843 159,962
======= ====== ===== ======= ====== ======
Capital and reserves
Called up share capital 18,994 - 18,994 18,994 - 18,994
Share premium 41,235 - 41,235 41,235 - 41,235
Capital redemption reserve 50 - 50 50 - 50
Capital reserve -
realised (note 1) 73,746 (73,746) - 73,746 (73,746) -
Capital reserve -unrealised/
revaluation reserve (note 1) 18,172 (18,172) - 19,006 (19,006) -
Other capital reserves
(note 1) - 91,419 91,419 - 92,253 92,253
Revenue reserve/ Retained
earnings (note 2) 4,922 3,342 8,264 4,088 3,342 7,430
---------- ---------- ---------- ---------- ---------- ----------
157,119 2,843 159,962 157,119 2,843 159,962
====== ====== ====== ====== ====== ======
Notes to the reconciliation
1. Investments are classified as held at fair value through profit or loss under IFRS and are carried at bid
prices. Previously, under UK GAAP, they were carried at mid prices. The aggregate difference, being a revaluation
downwards of #499,000, also decreases other capital reserves. Capital reserve - realised and capital reserve -
unrealised are now reclassified within other capital reserves.
2. No provision has been made for the dividends on the ordinary shares for the year ended 31 August 2005 of
#3,342,000. Under IFRS, dividends are not recognised until paid.
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Page 13 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Notes to the Accounts, continued
5. (b) Reconciliation of the Statement of Total Return to the Income Statement for the year ended 31
August 2005
Under IFRS the Income Statement is the equivalent of the Statement of Total Return as reported
previously.
EPS
2005 impact
Note #'000 pence
Net return on ordinary activities after taxation
per Statement of Total Return 28,367
Change from mid to bid basis at 30 June 2004 1 399 0.55
Change from mid to bid basis at 30 June 2005 1 (499) (0.68)
--------- ---------
Net profit per Income Statement 28,267 (0.13)
===== =====
Note to the reconciliation
1. The portfolio valuations at 31 August 2004 and 31 August 2005 are required to be valued
at fair value under IFRS. These values differ from the previous valuations by #399,000 and
#499,000 respectively.
5. (c) Reconciliation of the Cash Flow Statement for the year ended 31 August 2005
Previously Effect Adjusted
reported of cash flows
cash flows transition
2005 to IFRS 2005
#'000 #'000 #'000
Notes
Net cash inflow from operating activities 1 9,605 (24,888) (15,283)
Returns on investments and servicing of finance 1 (44) 44 -
Taxation (2,097) 2,097 -
Net cash outflow from financial investment (22,747) 22,747 -
Equity dividends paid 2 (5,969) 5,969 -
--------- --------- --------
Net cash outflow before financing 1,2 (21,252) 5,969 (15,283)
Financing 1,2 20,345 (5,969) 14,376
--------- -------- ---------
Decrease in cash (907) - (907)
===== ===== ======
Notes to the reconciliation
1. Servicing of finance, taxation and net cash outflow from financial investment have now
been analysed within operating activities.
2. Equity dividends paid are now analysed within financing.
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Page 14 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
Notes to the Accounts, continued
6. Restatement of opening balances as at 31 August 2004
As at 1 September 2005 the company adopted International Financial Reporting Standards. In accordance
with IFRS 1 (First Time Adoption of Financial Reporting Standards) the following is a reconciliation of
the balance sheet as at 31 August 2004, previously reported under the applicable UK Accounting Standards
and the SORP, to the restated IFRS results.
Consolidated Company
Previously Previously
reported 31 Restated reported Restated
August 31 August 31 August 31 August
2004 Adjustments 2004 2004 Adjustments 2004
#'000 #'000 #'000 #'000 #'000 #'000
Fixed Assets
Investments
(note 1) 112,195 (399) 111,796 113,024 (399) 112,625
Current assets 6,946 - 6,946 6,823 - 6,823
Creditors: amounts falling
due within one year
(note 2) (3,871) 2,768 (1,103) (4,577) 2,768 (1,809)
---------- ---------- ---------- ---------- ---------- ----------
Total assets less current
liabilities 115,270 2,369 117,639 115,270 2,369 117,639
Provisions for liabilities
and charges (319) - (319) (319) - (319)
---------- ---------- ---------- ---------- ---------- ----------
114,951 2,369 117,320 114,951 2,369 117,320
======= ====== ===== ======= ====== ======
Capital and reserves
Called up share capital 16,477 - 16,477 16,477 - 16,477
Share premium 23,407 - 23,407 23,407 - 23,407
Capital redemption reserve 50 - 50 50 - 50
Capital reserve - realised
(note 1) 67,381 (67,381) - 67,381 (67,381) -
Capital reserve - unrealised/
revaluation reserve
(note 1) 3,607 (3,607) - 4,436 (4,436) -
Other capital reserves
(note 1) - 70,589 70,589 - 71,418 71,418
Revenue reserve/Retained
earnings (note 2) 4,029 2,768 6,797 3,200 2,768 5,968
---------- ---------- ---------- ---------- ---------- ----------
114,951 2,369 117,320 114,951 2,369 117,320
====== ====== ====== ====== ====== ======
-MORE-
Page 15 of 15
HENDERSON FAR EAST INCOME TRUST PLC
Unaudited Preliminary Group Results for the year ended 31 August 2006
7. Dividend
No provision has been made for the 3rd and 4th interim dividends in these accounts due to the adoption
of IFRS. Under IFRS, interim dividends are not recognised until paid. Previously dividends were
recognised in respect of the period to which they related.
Year ended
31 August
2006
#'000
Revenue available for distribution by way of dividends for the year 8,422
1st interim paid on 3 April 2006 2.20p (1,707)
2nd interim paid on 3 July 2006 2.20p (1,707)
3rd interim paid on 2 October 2006 2.30p (1,785)
4th interim proposed to be paid on 14 December 2006 2.30p (1,785)
--------
Undistributed revenue for section 842 purposes* 1,438
=====
*Undistributed revenue is equivalent to 10.5% of the income from investments of #13,648,000.
The third interim dividend of 2.30p per ordinary share was paid on 2 October 2006 to shareholders on
the register of members at close of business on 25 August 2006. The proposed fourth interim dividend
of 2.30p per ordinary share will be paid on 14 December 2006 to shareholders on the register of
members at the close of business on 8 December 2006. The shares will go ex-dividend on 6 December
2006.
8. 2006 accounts
The preliminary figures for the year ended 31 August 2006, which do not constitute statutory accounts,
are an extract from the group's draft accounts for the year. These accounts have not yet been
delivered to the Registrar of Companies, nor have the auditors yet reported on them.
9. 2005 accounts
The figures and financial information for the year ended 31 August 2005 are an extract of the latest
published accounts, restated to comply with IFRS (see note 5) and do not constitute the statutory
accounts for that year. Those accounts have been delivered to the Registrar of Companies and included
the report of the auditors which was unqualified and did not contain a statement under either section
237(2) or section 237(3) of the Companies Act 1985.
10. Annual report and AGM
The full annual report and accounts will be posted to shareholders in November 2006 and copies will be
available thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M
2DA.
The Annual General Meeting will be held on Friday 15 December 2006.
For further information please contact:
Michael Watt James de Sausmarez
Fund Manager Head of Investment Trusts
Henderson Far East Income Trust plc Henderson Global Investors
Telephone: 020 7818 4339 Telephone: 020 7818 3349
Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors
Telephone: 020 7818 3198
This information is provided by RNS
The company news service from the London Stock Exchange
END
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