Final Results
01 Octobre 2003 - 4:40PM
UK Regulatory
RNS Number:4165Q
Manchester & London Inv Tst PLC
01 October 2003
Manchester & London Investment Trust plc
ANNOUNCEMENT OF THE AUDITED GROUP RESULTS
For the year ended 31st July 2003
Attached pages 1 - 5
Enquiries :
Manchester & London Investment Trust plc
B S Sheppard
Tel : 0161-228-1709
Brokers :
Midas Investment Management Limited
M B B Sheppard
Tel : 0161-228-1709
Manchester & London Investment Trust plc 1st October 2003
ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 1 of 5
The Directors Announce the Audited Figures
For the year ended 31st July 2003
Consolidated Statement of Total Return (incorporating the revenue account)
2003 2002
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Gains (losses) on investments - 1,651 1,651 - (1,295) (1,295)
Income (note 1) 1,125 - 1,125 1,018 370 1,388
Investment management fee (55) (102) (157) (55) (102) (157)
Other expenses (178) - (178) (174) - (174)
Return on ordinary activities
before taxation 892 1,549 2,441 789 (1,027) (238)
Taxation on ordinary activities (30) 30 - (11) 11 -
Return on ordinary activities
after taxation 862 1,579 2,441 778 (1,016) (238)
Dividends in respect of non-equity shares (57) - (57) (57) - (57)
Return attributable to equity shareholders 805 1,579 2,384 721 (1,016) (295)
Dividends in respect of equity shares (713) - (713) (638) - (638)
Transfer to (from) reserves 92 1,579 1,671 83 (1,016) (933)
Return per ordinary share (pence)
Basic 10.73 21.06 31.79 9.61 (13.54) (3.93)
Fully diluted 8.23 15.07 23.30 7.43 (9.70) (2.27)
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.
Non-equity dividends
Dividends per preference share accrue at the rate of 7.6% p.a.
Equity dividends
Interim dividend paid per each 25p ordinary share 2.5p (2002 - 2.5p)
Increased final dividend proposed per each 25p ordinary share 7.0p (2002 -
6.0p)
The ordinary dividend is payable on 4th February 2004 to shareholders on the
Register at the close of business on 17th October 2003.
Manchester & London Investment Trust plc 1st October 2003
ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 2 of 5
Consolidated Balance Sheet
At 31st July 2003
2003 2002
#'000 #'000 #'000 #'000
Fixed Assets
Investments 20,093 28,378
Current Assets
Debtors 170 714
Cash and short term deposits 10,701 408
10,871 1,122
Creditors
Amounts falling due within one year (6,114) (908)
Net Current Assets 4,757 214
Total assets less current liabilities 24,850 28,592
Creditors
Amounts falling due after more than one year - (5,413)
Net Assets 24,850 23,179
Capital and Reserves
Called-up Share Capital 2,619 2,619
Other reserves
Capital reserve - realised 19,115 16,570
Capital reserve - unrealised 589 1,555
Goodwill reserve (79) (79)
Revenue reserve 2,606 2,514
Total shareholders' funds 24,850 23,179
Equity interests - Ordinary shares 24,106 22,435
Non-equity interests - Preference shares 744 744
24,850 23,179
Net Asset Value per share
Ordinary shares - basic 321.4p 299.1p
Ordinary shares - fully diluted 237.2p 221.2p
Manchester & London Investment Trust plc 1st October 2003
ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 3 of 5
Consolidated Cashflow Statement
For the year ended 31st July 2003
2003 2002
#'000 #'000 #'000 #'000
Operating activities
Net dividends and interest received from investments 1,288 641
Other income 274 282
Investment management fees paid (150) (152)
Other cash payments (175) (190)
Net cash inflow from operating activities 1,237 581
Servicing of finance
Preference dividend paid (57) (57)
Net cash outflow from servicing of finance (57) (57)
Financial investment
Purchase of investments (16,263) (15,937)
Sale of investments 26,014 6,220
Net cash inflow (outflow) from financial investment 9,751 (9,717)
Equity dividends paid (638) (330)
Increase (decrease) in cash 10,293 (9,523)
Reconciliation of net cash flow to movement in net funds
Increase (decrease) in cash in year 10,293 (9,523)
Net funds at beginning of year 408 9,931
Net funds at end of year 10,701 408
Manchester & London Investment Trust plc 1st October 2003
ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 4 of 5
Note 1
2003 2002
#'000 #'000
Income
Income from investments
UK dividends 750 693
Government securities 83 64
833 757
Other income
Deposit interest 292 261
Total income 1,125 1,018
The above financial information does not constitute statutory financial
statements as defined in Section 240 of the Companies Act 1985. The comparative
financial information is based on the statutory financial statements for the
year ended 31st July 2002.
Those financial statements, upon which the auditor issued an unqualified
opinion, have been delivered to the Registrar of Companies. Statutory financial
statements for the year ended 31st July 2003 will be delivered to the Registrar.
Manchester & London Investment Trust plc 1st October 2003
ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 5 of 5
CHAIRMAN'S STATEMENT
My Interim Statement in February this year very nearly coincided with the nadir
of the 2000/03 bear market which was principally caused by the collapse of
grossly overvalued technology stocks, forced selling by insurance companies and
the adverse effect of FRS 17 on corporate pension funds. The year under review
has, therefore, been a roller coaster with the first half recording a further
decline in the net asset value which has been more than recovered in the second
half; over the year as a whole the gain has been 7.23% which compares with a
0.24% decrease in the FTSE All-Share Index. This is a creditable performance,
taking into account our cautionary stance reflected by the cash position
amounting to 62% of net assets at the interim stage, which has been reduced to
21% at the year end after adjusting for the repayment of the #5.4m interest free
loan from our parent company.
The projected income for the current year is expected to be similar to the year
under review, as the benefit of the interest free loan (now repaid) was
substantially negated by the fact that our holding of Andrews Sykes did not
generate any income. As reported at the interim stage, however, the Andrews
Sykes investment contributed substantially to our performance throughout the
latter part of the bear market.
We have adhered to our investment policy during the last twelve months by
maintaining substantial cash balances during the storm and investing mainly in
sound income producing stocks when the clouds started lifting. Interest rates
have now fallen to the lowest level for nearly 50 years. We continue to believe
that sound income stocks should not only produce a reasonable return for
shareholders but also create some capital growth as investors move out of cash
deposits, which now offer very low returns. Interest rates now appear to be at
or near their low point and we are mindful that the long decline could soon
reverse itself.
Six months ago the major worry seemed to be the threat of deflation; hence the
substantial fall in interest rates during the last three years. Recently,
however, there has been a subtle change in attitudes as inflation creeps back
into the system, particularly the service sector. Government borrowing and
consumer spending are the driving forces of the putative recovery in Western
economies but one must question whether this formula is sustainable. Currency
pressures and global trade patterns are moving into uncharted territory and the
jury is still undecided whether deflation or inflation is becoming the main
economic threat.
We are proposing a final dividend of 7p, making a total of 9.5p for the year,
thus enabling the Company to comply with the Inland Revenue distribution
requirements. Although the Directors intend that the record date for the final
dividend will be 17th October 2003, they also intend to recommend that the
dividend on the ordinary shares be declared and that payment be made on 4th
February 2004. This is because once the Companies (Acquisition of Own Shares)
(Treasury Shares) Regulations 2003 come into force in December this year and the
consequent amendments to the Listing Rules have been finalised, your Board
wishes to explore the possibility of enabling shareholders to have the option of
receiving existing issued shares (which have been bought in the market into
treasury) in lieu of dividends should they wish to do so including, if possible,
in lieu of this year's final dividend. If this proves feasible, an
Extraordinary General Meeting will be convened in the new year and shareholders
will receive a circular setting out full details of the proposals, seeking their
approval for the relevant authorities and to amend the Articles of Association
as required.
The Annual General Meeting is to be held at 45 Spring Gardens, Manchester M2
2BG, at 12.45pm on Thursday 20th November 2003, after which the results of the
draw for Wimbledon tickets will be announced.
P. H. A. Stanley FCA
Chairman
1st October 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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