Interim Results
23 Juillet 2003 - 1:52PM
UK Regulatory
RNS Number:8689N
Govett Singapore Growth Fund Ltd
23 July 2003
GOVETT SINGAPORE GROWTH FUND - INTERIM REPORT 31 MAY 2003
CHAIRMAN'S STATEMENT
The first six months of the financial year continued to be a challenging one for
the Singapore equity market. During the period, we saw the market battered by a
series of negative events, including a virulent virus known as Severe Acute
Respiratory Syndrome (SARS), political tensions in the Korean peninsula, the
Iraqi war and the threat of terrorism. While SARS has caused the most
substantial damage to the Singapore economy and equity market over the last few
months, fortunately, in particular for the citizens of Singapore who have
suffered during the crisis, the virus now appears to be substantially under
control and the market has begun to stabilise and rebound from its lows.
At the time of writing in July, the Singapore market has extended its gains on a
liquidity-led rally assisted by the early signs of an improving US economy. The
net asset value has increased to #10.89 as at 18 July 2003. This represents an
increase of 20.20 % since 31 May 2003 compared with an increase of 19.10 % in
the index.
Against the challenging market backdrop of the first six months, the Fund's net
asset value decreased by 6.0% compared with a fall of 4.75% for the MSCI
Singapore index. The Fund Manager is, however, reasonably positive about market
prospects for the second half of the year, and has moved the Fund into a
moderately geared position by accumulating stocks on weakness. We therefore
believe that the Fund is reasonably positioned to benefit from the expected
continued market recovery in the second half of the financial year.
The SARS epidemic has highlighted two key lessons for investors; first, that the
Singapore government was able to demonstrate high level crisis management
capabilities compared with some other jurisdictions in the region which confirms
Singapore's political strength and will when managing social and economic
uncertainties. Secondly, it is a timely reminder that while China is likely to
remain dominant in attracting new global manufacturing investments, a
diversification into other countries in the region is both desirable and
prudent, so this can only be of benefit to Singapore.
The Singapore government remains committed to structural reform with the
objective of enhancing the country's competitiveness and the shaping of the "New
Singapore Inc." will allow companies to pool resources with the aim of achieving
cost reductions in order to compete more effectively globally. Such commitment
to reform, together with prudent fiscal policies, will, we believe, continue to
place Singapore high on the list of key investment destination among global
investors attracted to the region.
Duration of the Company
The Company, which was set up in October 1989, currently has no fixed life.
As noted above, the Directors believe that there are reasons to be positive
about the Singapore market over the medium term. However, the Directors are also
mindful of the current size of the Company and their responsibility to conduct
the affairs of the Company for the benefit of all the shareholders.
The Directors announce, therefore, that they have resolved to procure the
proposal at the next annual general meeting of the Company which is currently
expected to be held in, or around, April 2004 (and, if passed, at each
subsequent annual general meeting) of an ordinary resolution to the effect that
the Company should continue as an investment company for a further one year
period. If any such resolution is not passed, the Directors will draw up
suitable proposals for the future of the Company (which may include, but is not
to be limited to, the voluntary liquidation, open ending or other reorganisation
of the Company) for submission to the members of the Company at an extraordinary
general meeting to be convened by the Directors for a date no more than three
months after such annual general meeting, Implementation of the proposals will
require the approval of the members by special resolution. If such Proposals are
not approved, the Company will continue as an investment company.
Carl Lee
Chairman
July 2003
Statement of Total Return (incorporating the revenue account*) for the six
months ended 31st May 2003
Six months ended 31st May 2003 Six months ended 31st May 2001 Year ended 30th November 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#000s #000s #000s #000s #000s #000s #000s #000s #000s
Realised and unrealised - (1,334) (1,334) 2,727 2,727 - (2,094) (2,094)
(losses)/ gains on
investments
Net foreign currency - (17) (17) - 34 34 - (11) (11)
(losses)/profit
Income from investments 563 - 563 361 - 361 699 - 699
Deposit interest 2 - 2 - - - 13 - 13
Investment management fees (21) (86) (107) (28) (113) (141) (53) (212) (265)
Other expenses (91) - (91) (114) (28) (142) (228) (34) (262)
Net return/(loss) before 453 (1,437) 984 219 2,620 2,839 431 (2,351) (1,920)
finance costs and taxation
Interest payable (1) (1) (2) (2) (1) (3) (2) - (2)
Return/(loss) on ordinary 452 (1,438) (986) 217 2,619 2,836 429 (2,351) (1,922)
activities before taxation
Tax on ordinary activities (106) - (106) (63) - (63) (127) - (127)
Return/(loss) on ordinary 346 (1,438) (1,092) 154 2,619 2,773 302 (2,351) (2,049)
activities after tax
Return/(loss) per ordinary 18.47 (76.73) (58.26) 7.92 134.65 142.57 15.96 (124.27) (108.31)
share for the year (in
pence)
Weighted average shares in 1,874,458 1,945,528 1,891,660
issue
*The Revenue column represents the Revenue Account of the Company.
The revenue and capital items in the above statement derive from continuing
operations. There were no recognised gains and losses other than presented
above.
Balance Sheet
As at 31st May 2003
31st May 31st May 30th November
2003 2002 2002
#000s #000s #000s
Investments at valuation 17,354 23,080 15,943
Current assets
Debtors 216 110 290
Cash at bank 16 480 2,436
232 590 2,726
Creditors: amounts falling due within one year (606) (134) (597)
Net current assets / (liabilities) (374) 456 2,129
Total assets less current liabilities 16,9806 23,536 18,072
FINANCED BY
Share capital 18 19 18
Share premium 4,217 4,858 4,217
Capital redemption reserve 8 7 8
Revenue reserve 1,394 900 1,048
Capital reserve - unrealised (4,861) 10 (5,160)
Capital reserve - realised 16,204 17,742 17,941
Total shareholders' funds (all equity) 16,980 23,536 18,072
Net asset value per share #9.06 #12.10 #9.64
Cashflow Statement for the year ended 31 May 2003
31 May 31 May 30 November
2003 2002 2001
#000s #000s #000s
Operating activities
Investment income received 332 217 557
Deposit interest received 2 - 13
Investment management fees paid (21) (27) (55)
Other cash payments (87) (53) (206)
Net cash inflow from operating activities 226 137 307
Return on investments and servicing of finance
Interest paid (1) (2) (3)
Capital expenditure and investment activities
Foreign exchange - (2) -
Purchase of fixed asset investments (5,770) (15,082) (18,375)
Sale of fixed asset investments 2,705 14,806 20,654
Sundry capital items (90) (139) (255)
Net cash (outflow)/inflow from capital activities (3,155) (417) 2,024
Financing
New loan 2,386 - -
Repayment of loan (1,841) - -
Purchase of own shares - - (642)
(Decrease) /increase in cash (2,385) (282) 1,688
The Company's interim report and accounts will be sent to shareholders in July/
August 2003 Copies will be made available to the public at the registered office
of the Company, Union House, Union Street, Jersey.
The Summarised Balance Sheet at 30 November 2002, Statement of Total Return and
Cashflow Statement for the period then ended are an abridged version of the
Company's full statutory accounts for the year ended 30 November 2002, which
have been filed with the Registrar of Companies; the auditors' opinion on those
accounts was unqualified.
By Order of the Board
AIB Govett Secretaries (Jersey) Limited
Union House
Union Street
St. Helier
Jersey JE4 9YE
Channel Islands
Registered in Jersey no: 45425
xx July 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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