Interim Results
18 Février 2003 - 10:05AM
UK Regulatory
RNS Number:6197H
Manchester & London Inv Tst PLC
18 February 2003
Manchester & London Investment Trust plc
Announcement of the interim group results
The Directors announce the unaudited interim figures
For the six months ended 31st January 2003
Consolidated Statement of Total return (incorporating the revenue account)
For the six months ended 31st January 2003 (unaudited)
Six months ended 31st January 2003 Six months ended 31st January 2002
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Profit on sale of investments - 2,503 2,503 - 213 213
Decrease in unrealised - (3,818) (3,818) - (131) (131)
appreciation
Investment income 546 - 546 482 - 482
Investment management fee (24) (46) (70) (29) (54) (83)
Other expenses (105) - (105) (81) - (81)
Return on ordinary activities 417 (1,361) (944) 372 28 400
before taxation
Taxation (6) 6 - - - -
Return on ordinary activities 411 (1,355) (944) 372 28 400
after taxation
Dividends in respect of non-equity (28) - (28) (28) - (28)
shares
Return attributable to
equity shareholders 383 (1,355) (972) 344 28 372
Dividends in respect of equity (188) - (188) (188) - (188)
shares
Transfer to (from) reserves 195 (1,355) (1,160) 156 28 184
Return per ordinary share (pence)
Basic 5.11 (18.07) (12.96) 4.59 0.37 4.96
Fully diluted 3.92 (12.93) (9.01) 3.55 0.27 3.82
The revenue column of this statement is the consolidated profit and loss account
of the group.
All revenue and capital items in the above statement derive from continuing
operations.
The statement for the period ended 31st January 2003 is unaudited and is not the
Company's statutory statement.
Dividends per preference share accrue at the rate of 7.6% p.a.
Interim dividend proposed per 25p ordinary share 2.5p (2002: 2.5p)
The ordinary interim dividend is payable on 17th April 2003 to shareholders on
the Register at the close of business on 21st March 2003.
Manchester & London Investment Trust plc
Consolidated Balance Sheet
At 31st January 2003 (unaudited)
As at 31st January 2003 As at 31st January 2002
#'000 #'000 #'000 #'000
Fixed Assets
Investments 14,169 20,622
Current Assets
Debtors 134 358
Cash and short term deposits 13,697 9,269
13,831 9,627
Creditors
Amounts falling due within one year (5,981) (5,953)
Net Current Assets 7,850 3,674
Total assets less current liabilities 22,019 24,296
Capital and Reserves
Called-up Share Capital 2,619 2,619
Capital reserves 16,691 19,090
Revenue reserve 2,709 2,587
Total shareholders' funds 22,019 24,296
Equity interests - Ordinary shares 21,275 23,552
Non-equity interests - Preference 744 744
shares
22,019 24,296
Net Asset Value per share
Ordinary shares - basic 283.7p 314.0p
Ordinary shares - fully diluted 210.2p 231.9p
Notes :
The accounts at 31st January are unaudited and are not the Company's statutory
accounts. The information for the period ended 31st January 2002 does not
constitute statutory accounts but has been extracted from the latest published
audited accounts which have been filed with the Registrar of Companies. The
report of the auditors on those accounts contained no qualification or statement
under Section 237(2) or (3) of the Companies Act 1985.
Manchester & London Investment Trust plc
Consolidated Cash Flow Statement
For the six months ended 31st January 2003 (unaudited)
Six months ended Six months ended
31 January 2003 31 January 2002
#'000 #'000 #'000 #'000
Operating activities
Net dividends and interest received from investments 1,027 313
Other income 95 190
Investment management fees paid (66) (99)
Other cash payments (101) (102)
Net cash inflow from operating activities 955 302
Servicing of finance
Preference dividend paid (28) (28)
Net cash outflow from servicing of finance (28) (28)
Financial investment
Purchase of investments (2,520) (3,534)
Sale of investments 15,332 2,740
Net cash inflow (outflow) from financial investment 12,812 (794)
Equity dividend paid (450) (142)
Increase (Decrease) in cash 13,289 (662)
Reconciliation of net cash flow to movement in net debt
Increase (Decrease) in cash in period 13,289 (662)
Net funds at beginning of the period 408 9,931
Net funds at end of the period 13,697 9,269
Manchester & London Investment Trust plc
Major Holdings
At 31st January 2003
Holding Market Value #'000 % of Portfolio
PZ Cussons Ordinary and
"A" Ordinary 10p 475,250 3,304 11.84
TDG Ordinary 1p 1,875,000 3,188 11.43
BAE SYSTEMS Ordinary 2.5p 1,500,000 1,706 6.12
Scottish & Newcastle Ordinary 20p 400,000 1,644 5.89
Parkman Group Ordinary 1p 1,470,000 1,639 5.88
Pilkington Ordinary 50p 1,475,000 1,007 3.61
Largest 6 Holdings 12,488 44.77
Short term cash deposits and dealing debtor 13,725 49.20
26,213 93.97
Manchester & London Investment Trust plc
Chairman's Statement
In last year's Annual Report, I expressed our opinion that there appeared to
be no immediate prospect of any improvement in the outlook for the share market,
and events since then have confirmed this gloomy prediction. During the six
months to 31st January 2003, our net asset value has declined from 221.2p to
210.2p (-4.97%), which compares to a fall of 328.5 points in the FT Actuaries
All Share Index from 2050.8 to 1722.3, a decline of 16%. Again, this not
unsatisfactory performance under the circumstances has been achieved by
continuing to hold a substantial percentage of our assets in cash.
Indeed, we have recently increased our cash resources to 49% of our gross
assets by disposing of the holding in Andrews Sykes Group plc which, for some
time, had been a disproportionately large constituent of our portfolio. The
share price had improved by 24% since the 31st July 2002 year end and, at 140p,
we considered the valuation to be sufficiently full to justify a disposal. This
has been our most successful investment, showing an appreciation of 526% since
the initial acquisition in 1995.
Assuming redemption of the #5.4m loan from our parent company when this becomes
due for repayment immediately after the end of the current financial year, the
balance of the cash held within the company would represent 37% of gross assets.
During the six months under review, we have made a modest investment in the
software group, Cedar Ltd. which, although speculative, could prove to be
interesting. Our 1.1% minority investment was made at the time the company
averted administration by recommending an offer from the venture capital group,
Alchemy Partners LLP, who have already reorganised Cedar into profitability.
Shareholders can obtain further details from the Cedar Web Site www.cedar.com.
Amongst all the uncertainties facing the UK stock market is the vulnerability of
sterling and its seemingly precarious valuation relative to the other major
global currencies, in particular, the US dollar and the Euro. The continuing
boom in UK mortgage lending and credit card financing is reflected in a huge
trade deficit which, despite the positive impact of invisible earnings still
being generated in the City, is running at a level which may have to be
corrected by a downward revaluation in the currency markets. For some years
sterling and the US dollar have tended to move in tandem, but the US currency is
now weakening particularly against the Euro. Although official US policy is to
maintain a strong dollar, this seems unlikely to be achievable especially as the
US economy is suffering from excesses similar to those being indulged in the UK.
From the US standpoint, benign neglect of the dollar could be the most
convenient way to restore economic growth, albeit if this means exporting their
problems elsewhere, particularly Europe. Retention of our cash resources in
Euros rather than sterling is, therefore, potentially another protective option.
Weaker sterling could suit the UK Government, which is openly in favour of UK
entry into the Euro at a level which would necessitate a fairly sharp fall in
the value of sterling in order to meet one of the Chancellor's self imposed
tests. The Euro issue has, however, moved to the back burner as other more
pressing issues move centre stage as the house and consumer credit booms start
to cool. The slack is being taken up by a huge expansion in public spending,
sparking fears that yet further increases in taxation are in prospect despite
the Chancellor's assurances. In the meantime, the beleaguered manufacturing
sector continues to suffer from intense global competition, thus making it very
difficult to maintain profitability. We believe it is this factor which is the
principal cause of the fall in the major stock markets although the Iraqi factor
clearly does not help, and the only corrective action which appears likely is
for the currency to take the strain and devalue against the Euro.
This is not yet the longest nor the steepest bear market ever recorded, but the
end does not seem to be in sight, although further dollar devaluation could
gradually stabilise the all important US stock market. There will, of course, be
rallies and whilst we will attempt to benefit from such movements, we intend to
remain substantially in cash until a clearer picture emerges.
The Directors have today declared an unchanged Interim Dividend of 2.5p per
share which will be paid on 17th April 2003 to shareholders on the Register at
the close of business on 21st March 2003.
P.H.A. Stanley F.C.A.
Chairman
18th February 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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