RNS Number:3513U
Murray Global Return Trust PLC
19 January 2004
MURRAY GLOBAL RETURN TRUST PLC
Interim Announcement for the six months ended 30 November 2003
The Directors announce the interim results of Murray Global Return Trust PLC for
the six months ended 30 November 2003.
Key Points
*Second interim dividend of 1.625p per Ordinary share declared in respect
of the year ending 31 May 2004.
*Net Asset Value total return for the six months ended 30 November 2003,
with net dividends reinvested, of 20.1% from Units.
*Net Asset Value 15.7p per Ordinary share and 143.6p per Zero Dividend
Preference share at 30 November 2003.
*Hurdle rate of 0.6% on the Zero Dividend Preference shares at 30 November
2003.
Overview
For the first six months of the financial year, global stockmarkets were
encouraged by an overall improvement in macro-economic data and corporate
fundamentals. Monetary conditions remained accommodative, with ample liquidity
available to support financial markets and, with each tangible sign of recovery,
equity markets were quick to recognise good news. Consequently, the FTSE World
Index, with net dividends reinvested, was up 10% in sterling terms over the
period under review. Having divested the Company's large sovereign bond
portfolio earlier in the year and reinvested the proceeds in various, diverse
global equity markets, the Manager's response during the current period was
essentially to maintain the pro-cyclical emphasis within the portfolio. This
involved keeping a high weighting to industrial companies in Europe and a
positive asset allocation towards Asia and Emerging Market equities. The
portfolio remained totally unexposed to the US market, where valuations were
deemed too expensive relative to the underlying rate of corporate profit growth,
and exposure to the UK market was steadily reduced in favour of higher growth
opportunities elsewhere in the world. At stock level, strict adherence was
applied to holding good quality companies with solid balance sheets, low debt
and strong cash flow, in all geographical areas.
Due to the effect of operational gearing inherent within the structure of the
Company, the overall rise in Net Asset Value resulted in a proportionally larger
increase in the capital value of the Ordinary shares. Although this structural
characteristic of the Company has been consistently highlighted in the past, the
current period of rising equity markets has enabled the positive impact of such
operational leverage to be exhibited for the first time since markets troughed
in March 2003. Accordingly, the Net Asset Value per Ordinary share rose from nil
at 31 May 2003 to 15.7p at 30 November 2003, and subsequently has increased
further to 27.7p at 15 January 2004. As a result, by 15 January 2004, the hurdle
rate on the Zero Dividend Preference shares was -4.9%. With this in mind, it is
appropriate to consider the current backdrop for markets and the factors which
lead the Board to believe that the positive progress made since 31 May 2003 can
continue into the future.
Background
The re-emergence of growth throughout the developed world proved to be the
dominating influence over financial markets during the past six months. Starved
of any real tangible signs of monetary traction since interest rates began
declining close to three years ago, equity markets were suddenly confronted with
a raft of positive growth statistics, which significantly boosted investor
sentiment. The serious threat of deflation faced during the dark months of
recession diminished as global economic recovery gathered momentum. Despite weak
growth in household incomes and a massive reliance on fiscal stimulus and debt
creation, the quality and sustainability of the current business cycle was not
open to criticism. The developed world was growing again, and that was all that
mattered.
Global equity markets, not surprisingly, consistently accentuated the positive
during the period. Risk aversion declined amid renewed optimism and even some
"politically induced" currency turbulence, towards the end of September failed
to derail the upward trend. Lingering concerns over the rapid deterioration of
the "twin deficits" in the United States kept the dollar on its downward
trajectory against most global currencies, but for the most part the decline was
orderly. Rising commodity prices confirmed global reflation was underway and,
consequently, most global stockmarkets enjoyed a period of strong, positive
returns for the first time in many years.
Performance
During the six months to 30 November 2003, the Net Asset Value attributable to
the Ordinary shares rose to 15.7p on an Articles of Association ("Articles")
basis. For the six month period the return on net assets attributable to the
Units, with net dividends reinvested, was +20.1%. This compared with the return
on the FTSE All-Share Index of +10.8%, the return on the FTSE World Europe ex UK
of +12.5%, the return on the FTSE World Asia Pacific ex Japan of +21.4%, and the
return on the S&P/IFCI Latin American Index of +24.7%. These indices cover the
most important regions in which the Company's equity portfolio is invested.
Activity
In the UK, the Company continued to reduce overall exposure to the equity
market. Positions in BP, Shell, Diageo, AstraZeneca and GlaxoSmithKline were
sold outright, with the proceeds reinvested in higher growth markets worldwide.
Based on solid currency fundamentals, good recovery prospects and impressive
capital discipline at the company level, Europe continued to be fully
represented in the portfolio. Existing positions in Allied Irish Bank, Altadis,
Schneider Electric, IHC Caland and Valeo were all increased, and a new position
in leading Danish telecommunications company, TDC Corp, was also established.
In Asia, the Company used the general strength in the region to exit some
smaller holdings in various less-liquid markets. Hence, positions in Ayala Land
(Philippines), Fubon Financial(Taiwan), Sinopac Holdings(Taiwan) and Public Bank
(Malaysia) were sold outright. The proceeds were all reinvested in the region,
with India, Korea and Singapore being the main markets of choice. In India,
existing positions in Bharat Petroleum and ICICI Bank were increased; in Korea,
a new position was established in communications company, KT Corp and the
existing holding in Hyundai Motor was increased; finally, in Singapore, extra
investment was directed into two leading financial companies, United Overseas
Bank and Oversea Chinese Banking, plus a new position in ST Engineering was
established.
The Latin American region delivered some of the strongest market returns in the
world during the period, as macro-economic fundamentals rapidly improved and
stocks began recognising gains in underlying profitability. Activity in the
region focused on reducing exposure to Brazilian Bonds, following a period of
strong outperformance, and equity positions in Aracruz of Brazil and Quimica Y
Minera of Chile were sold outright. A new position in Telmex, the Mexican
communications company, was introduced to the portfolio to gain exposure to this
potentially high growth sector.
Share Buy-Backs
In the period from 1 July to 30 September 2003, the Company bought back a total
of 5,106,535 Zero Dividend Preference shares for an aggregate cost of #5,847,420
and at an average price of 113.7p per share.
The Board considers there to be advantages to both classes of Shareholder in
maintaining a carefully monitored programme of share buy backs and, accordingly,
the authority to buy back up to 14.99% of each class of share was renewed at the
Annual General Meeting of the Company, held on 30 September 2003. To date, no
transactions have been effected under the current authority as the Company's
Ordinary shares have continued to trade at a price below their nominal value of
25p, being the minimum price at which such shares may be bought back; while the
Zero Dividend Preference shares have been trading at a lower level of discount,
at which the Board and Manager considered did not represent reasonable value for
continuing Shareholders. However, the Manager will continue to seek
opportunities to effect such transactions when it is deemed beneficial to
Shareholders.
Dividends
On 1 August 2003, the Directors declared a first interim dividend, in respect of
the year ended 31 May 2004, of 1.625p per Ordinary share, payable on 24 October
2003 to Ordinary Shareholders on the register on 1 October 2003. Subsequently,
on 22 December 2003, the Directors declared a second interim dividend, in
respect of the year ended 31 May 2004, of 1.625p per Ordinary share, payable on
31 January 2004 to Ordinary Shareholders on the register on 9 January 2004.
Outlook
An unequivocal improvement in global economic activity, combined with a rapid
shift in consensus expectations from fearing deflation to embracing reflation,
were rapidly recognised in equity and bond markets over the past six months. The
respective positive and negative returns are testimony to this. However, whilst
expectations may have changed, macro-economic reality remained fairly
uninspiring. Economic growth appeared to have, at long last, responded to
aggressive monetary and fiscal stimulation, although much of this remained
contained in purely interest rate sensitive sectors such as housing and retail.
With the current business cycle clearly in its infancy and still over-dependent
on credit, it is vital that economic activity broadens out to include
manufacturing, business investment and job growth if recent momentum is to be
maintained. The prevailing climate of high debt and low savings, suggesting
impediments to growth, remain entrenched in the developed economies, obstacles
that could still prove extremely restrictive to growth if the recent back-up in
bond yields continues. For the next six months, economic recovery is likely to
remain fragile.
Where economic traction is arguably more robust is in the developing world.
Unburdened by high debt and with savings to spare, the developing economies of
Asia and Latin America have demonstrated solid macro economic improvements for
some considerable time now. In addition to domestic agendas and export success,
there continues to be a strong secular component to the transfer of
manufacturing and production resources from developed to developing economies.
The textbook comparative advantage case has always been strong and appealing -
the excesses of the last business cycle provided the catalyst for the transition
to accelerate. At this juncture, some of the cheapest markets in the world
relative to growth prospects remain in the developing world, thus Murray Global
Return will continue to focus on emphasising high quality companies within them.
Financial Highlights
For the six months ended 30 November 2003
Murray Global Return Trust had a stock market capitalisation as at 30 November
2003 of #150 million (31 May 2003 - #123 million).
30 November 31 May
2003 2003 % change
Assets
Total assets less current #180,317,000 #162,266,000 11.1
liabilities
Equity Shareholders' funds* #16,905,000 - -
Ordinary shares
Net Asset Value* 15.7p - -
Share price 16.3p 12.5p 30.4
Premium to Net Asset Value 3.8% -
Hurdle rate** 8.0% 13.1%
Cost of Ordinary share - #164,000
buy-backs
Zero Dividend Preference
shares
Net Asset Value* 143.6p 135.4p 6.1
Share price 131.8p 103.5p 27.3
Discount to Net Asset Value 8.2% 23.6%
Hurdle rate*** 0.6% 10.1%
Cost of Zero Dividend Preference #5,838,000 #2,207,000
share buy-backs
Units (comprising one Ordinary share and one Zero Dividend Preference share)
Net Asset Value total return for 20.1% (15.6)%
the period per Unit
Net Asset Value 159.3p 135.4p 17.7
Share price 148.0p 114.0p 29.8
Discount to Net Asset Value 7.1% 15.8%
Issued share capital
Ordinary shares 107,402,735 107,402,735
Zero Dividend Preference 100,322,828 105,429,363
shares
* Attributable on an Articles of Association basis.
** The hurdle rate indicates the compound rate of growth of the total assets
required each year up to 19 March 2005, if they are to be sufficient to repay
the predetermined repayment price on the Zero Dividend Preference shares and to
return to the Ordinary shareholders the current share price (16.3p on 30
November 2003).
*** The hurdle rate indicates the compound rate of growth of the total assets
required each year up to 19 March 2005 if they are to be sufficient to repay the
predetermined redemption price on the Zero Dividend Preference shares. The Zero
Dividend Preference shares are repayable at a maximum of 158.69p each on 19
March 2005.
Source: splitsonline
MURRAY GLOBAL RETURN TRUST PLC
SUMMARY OF INVESTMENT CHANGES
Valuation Appreciation Valuation
31 May 2003 Transactions (depreciation) 30 November 2003
Equities #'000 % #'000 #'000 #'000 %
United 23,122 14.2 (5,967) 1,407 18,562 10.3
Kingdom
Split capital 1,166 0.7 (34) 615 1,747 1.0
investment
trusts
Europe 52,487 32.4 72 7,162 59,721 33.1
Africa, Asia 37,123 22.9 3,293 12,038 52,454 29.1
and
Australasia
Americas 31,812 19.6 (4,190) 6,612 34,234 19.0
------- ------ --------- --------- --------- -------
145,710 89.8 (6,826) 27,834 166,718 92.5
------- ------ --------- --------- --------- -------
Fixed Income
Europe 4,033 2.5 1,951 (596) 5,388 3.0
Africa, Asia 307 0.2 (2) 153 458 0.2
and
Australasia
Americas 12,296 7.6 (1,991) (798) 9,507 5.3
------- ------ --------- --------- --------- -------
16,636 10.3 (42) (1,241) 15,353 8.5
------- ------ --------- --------- --------- -------
Other net (80) (0.1) (1,534) (140) (1,754) (1.0)
liabilities ------- ------ --------- --------- --------- -------
Total 162,266 100.0 (8,402) 26,453 180,317 100.0
assets ------- ------ --------- --------- --------- -------
Valuation
Summary of 30 November
net assets 2003
#'000 %
Equities 166,718 103.7
Fixed 15,353 9.5
income
Other net (1,754) (1.1)
assets
Borrowings (19,271) (12.0)
Provisions for (98) (0.1)
liabilities and --------- ---------
charges
Shareholders' 160,948 100.0
funds --------- ---------
Twenty Largest Investments
as at 30 November 2003
-------------------------- % of
Valuation total
Security Area #'000 assets
--------------------- ----------- --------- --------
Tenaris Mexico 6,729 3.7
Government of Hungary 8.5% 12/10/ Hungary 5,388 3.0
04
Mexico 10.5% 14/7/11 Mexico 5,361 3.0
Petrobras ADR Brazil 4,986 2.8
Republic of Brazil 8% 15/4/14 Brazil 4,146 2.3
Aeroportuario De Sureste ADS Mexico 3,800 2.1
Souza Cruz Brazil 3,752 2.1
ICICI Bank India 3,654 2.0
Petrochina China 3,643 2.0
Samsung Electronics Preferred South Korea 3,552 2.0
Metro Germany 3,491 1.9
Wing Hang Bank Hong Kong 3,481 1.9
Volvo Sweden 3,359 1.9
Bharat Petroleum Corporation India 3,191 1.8
Stora Enso Oyj Finland 2,976 1.7
British American Tobacco United 2,918 1.6
Kingdom
Telefonos De Mexico ADR Mexico 2,885 1.6
PTT Exploration & Production - Thailand 2,840 1.6
Foreign
Arcelor France 2,830 1.6
Hyundai Motor South Korea 2,735 1.5
--------- --------
75,717 42.1
--------- --------
Statement of Total Return
(Incorporating the Revenue Account of the Company*)
Six months ended
30 November 2003
(unaudited)
Revenue Capital Total
#'000 #'000 #'000
Realised losses on - (4,612) (4,612)
investments
Unrealised gains/(losses) on - 31,205 31,205
investments ---------- ----------- ----------
Gains/(losses) on - 26,593 26,593
investments
Income from investments 3,165 - 3,165
Other income 6 - 6
Investment management fees (194) (453) (647)
Currency losses - (140) (140)
Other expenses (330) - (330)
---------- ----------- ----------
Net return before finance
costs and taxation 2,647 26,000 28,647
Finance costs of borrowing (230) (535) (765)
---------- ----------- ----------
Return on ordinary activities 2,417 25,465 27,882
before taxation
Taxation on ordinary (649) 296 (353)
activities ---------- ----------- ----------
Return on ordinary activities 1,768 25,761 27,529
after taxation for the
period
Appropriations in respect
of non-equity shares:
Zero Dividend Preference - (4,231) (4,231)
shares ---------- ----------- ----------
Return attributable to equity 1,768 21,530 23,298
Shareholders
Ordinary dividends on equity (3,491) - (3,491)
shares ---------- ----------- ----------
Transfer (1,723) 21,530 19,807
(from)/to ---------- ----------- ----------
reserves
Return/(loss) per Ordinary
share on an Articles of
Association basis (pence):
Return/(loss) per Ordinary 1.7 17.3 19.0
share ---------- ----------- ----------
Return/(loss) per Zero - 7.0 7.0
Dividend Preference share
Return/(loss) per share on
a FRS 4 basis (pence):
Return/(loss) per Ordinary 1.7 20.1 21.8
share ---------- ----------- ----------
Return per Zero Dividend - 4.1 4.1
Preference share ---------- ----------- ----------
Statement of Total Return
(Incorporating the Revenue Account of the Company*)
Six months ended
30 November 2002
(unaudited)
Revenue Capital Total
#'000 #'000 #'000
Realised losses on investments - (22,945) (22,945)
Unrealised gains/(losses) on - (23,005) (23,005)
investments ---------- ----------- ----------
Gains/(losses) on investments - (45,950) (45,950)
Income from investments 3,115 - 3,115
Other income 18 - 18
Investment management fees (203) (473) (676)
Currency losses - (58) (58)
Other expenses (280) (6) (286)
---------- ----------- ----------
Net return before finance
costs and taxation 2,650 (46,487) (43,837)
Finance costs of borrowing (243) (539) (782)
---------- ----------- ----------
Return on ordinary activities 2,407 (47,026) (44,619)
before taxation
Taxation on ordinary activities (385) 305 (80)
---------- ----------- ----------
Return on ordinary activities after 2,022 (46,721) (44,699)
taxation for the period
Appropriations in respect of
non-equity shares:
Zero Dividend Preference shares - (5,422) (5,422)
---------- ----------- ----------
Return attributable to equity 2,022 (52,143) (50,121)
Shareholders
Ordinary dividends on equity (4,018) - (4,018)
shares ---------- ----------- ----------
Transfer (1,996) (52,143) (54,139)
(from)/to ---------- ----------- ----------
reserves
Return/(loss) per Ordinary
share on an Articles of
Association basis (pence):
Return/(loss) per Ordinary share 1.9 (39.7) (37.8)
---------- ----------- ----------
Return/(loss) per Zero Dividend - (3.8) (3.8)
Preference share ---------- ----------- ----------
Return/(loss) per share on a
FRS 4 basis (pence):
Return/(loss) per Ordinary share 1.9 (48.5) (46.6)
---------- ----------- ----------
Return per Zero Dividend - 5.0 5.0
Preference share ---------- ----------- ----------
Statement of Total Return
(Incorporating the Revenue Account of the Company*)
Year ended
31 May 2003
(audited)
Revenue Capital Total
#'000 #'000 #'000
Realised losses on investments - (33,966) (33,966)
Unrealised gains/(losses) on - (315) (315)
investments ---------- ----------- ----------
Gains/(losses) on investments - (34,281) (34,281)
Income from investments 8,690 - 8,690
Other income 24 - 24
Investment management fees (379) (885) (1,264)
Currency losses - (2) (2)
Other expenses (532) (8) (540)
---------- ----------- ----------
Net return before finance costs and 7,803 (35,176) (27,373)
taxation
Finance costs of borrowing (457) (1,067) (1,524)
---------- ----------- ----------
Return on ordinary activities 7,346 (36,243) (28,897)
before taxation
Taxation on ordinary activities (1,637) 580 (1,057)
---------- ----------- ----------
Return on ordinary activities after 5,709 (35,663) (29,954)
taxation for the period
Appropriations in respect of
non-equity shares:
Zero Dividend Preference shares - (9,999) (9,999)
---------- ----------- ----------
Return attributable to equity 5,709 (45,662) (39,953)
Shareholders
Ordinary dividends on equity (7,495) - (7,495)
shares ---------- ----------- ----------
Transfer (1,786) (45,662) (47,448)
(from)/to ---------- ----------- ----------
reserves
Return/(loss) per Ordinary
share on an Articles of
Association basis (pence):
Return/(loss) per Ordinary share 5.3 (39.8) (34.5)
---------- ----------- ----------
Return/(loss) per Zero Dividend - 6.6 6.6
Preference share
Return/(loss) per share on
a FRS 4 basis (pence):
Return/(loss) per Ordinary share 5.3 (42.5) (37.2)
---------- ----------- ----------
Return per Zero Dividend - 9.4 9.4
Preference share ---------- ----------- ----------
Balance Sheet
As at 30 November 2003
As at As at As at
30 November 30 November 31 May
2003 2002 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Fixed assets
Investments 182,071 153,162 162,346
Current assets
Debtors 962 1,348 1,461
Cash and short-term deposits 615 2,479 1,686
--------- --------- ---------
1,577 3,827 3,147
Creditors: amounts falling due (3,331) (4,264) (3,227)
within one year --------- --------- ---------
Net current liabilities (1,754) (437) (80)
--------- --------- ---------
Total assets less current 180,317 152,725 162,266
liabilities
Creditors: amounts falling due (19,271) (19,496) (19,385)
after more than one year
Provisions for liabilities and (98) (31) (133)
charges --------- --------- ---------
Net assets 160,948 133,198 142,748
--------- --------- ---------
Share capital and reserves
Called up share capital
Ordinary shares 26,851 26,851 26,851
Zero Dividend Preference 25,080 26,829 26,357
shares --------- --------- ---------
51,931 53,680 53,208
Share premium 232 232 232
Capital redemption reserve 4,223 2,475 2,946
Preference share redemption 118,962 115,849 119,292
reserve
Capital reserve - realised (5,677) 22,068 5,275
Capital reserve - unrealised (19,296) (73,192) (50,501)
Revenue reserve 10,573 12,086 12,296
--------- --------- ---------
109,017 79,518 89,540
--------- --------- ---------
Total Shareholders' funds 160,948 133,198 142,748
--------- --------- ---------
Attributable on an Articles of
Association basis:
Equity Shareholders' funds 16,905 - -
Zero Dividend Preference 144,043 133,198 142,748
Shareholders' funds --------- --------- ---------
160,948 133,198 142,748
--------- --------- ---------
Attributable on a FRS 4 basis:
Equity Shareholders' funds 16,905 (9,479) (2,901)
Zero Dividend Preference 144,043 142,677 145,649
Shareholders' funds --------- --------- ---------
160,948 133,198 142,748
Net Asset Value per share on an
Articles of Association basis
(pence):
Ordinary share 15.7 - -
Zero Dividend Preference share 143.6 124.1 135.4
Net Asset Value per share
on a FRS 4 basis (pence):
Ordinary share 15.7 (8.8) (2.7)
Zero Dividend Preference share 143.6 132.9 138.1
--------- --------- ---------
Cash Flow Statement
For the six months ended 30 November 2003
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2003 2002 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Operating activities
Investment income received 3,400 3,890 9,045
Deposit interest received 5 10 18
Underwriting commission 1 7 7
received
Investment management fees (448) (950) (1,540)
paid
Secretarial fees paid (58) (53) (90)
Cash paid to and on behalf of (43) (31) (64)
Directors
Other cash payments (231) (275) (515)
----------- ----------- -----------
Net cash inflow from operating 2,626 2,598 6,861
activities
Returns on investment and
servicing of finance
Interest paid (869) (879) (1,742)
----------- ----------- -----------
Net cash outflow from returns (869) (879) (1,742)
on investment and servicing of
finance
Taxation
UK corporation tax paid (526) (954) (1,397)
Financial investment
Purchases of investments (21,973) (32,197) (78,644)
Sales of investments 29,140 37,795 85,645
----------- ----------- -----------
Net cash inflow from financial 7,167 5,598 7,001
investment
Equity dividends paid (3,491) (4,564) (8,055)
----------- ----------- -----------
Net cash inflow before use of
financing and the management
of liquid resources 4,907 1,799 2,668
Financing
Repurchase of Ordinary shares - (164) (164)
Repurchase of Zero Dividend (5,838) (489) (2,207)
Preference shares ----------- ----------- -----------
Net cash outflow from (5,838) (653) (2,371)
financing ----------- ----------- -----------
(Decrease)/increase in cash (931) 1,146 297
----------- ----------- -----------
Notes to the Financial Statements
1. Return/(loss) per share
The return/(loss) per share calculated in accordance with the
Articles of Association and FRS 4, is shown on the Statement of
Total Return. A reconciliation between both sets of figures is shown
below.
Articles of Association basis:
When calculated under the Articles of Association there was a
shortfall in assets attributable to the Zero Dividend Preference
('ZDP') shares, as at 30 November 2003, of nil (31 May 2003 -
#2,901,000; 30 November 2002 - #9,479,000). Details of the shortfall
can be found in note 2.
The revenue return per Ordinary share is based on the net revenue
return for the period of #1,768,000 (31 May 2003 - #5,709,000; 30
November 2002 - #2,022,000) and the capital return per Ordinary
share is based on net capital gains for the period of #21,530,000
(31 May 2003 - losses of #45,662,000; 30 November 2002 - losses of
#52,143,000) after the deduction in respect of the ZDP shares of
#4,231,000 (31 May 2003 - #9,999,000; 30 November 2002 -
#5,422,000), less the decrease in the shortfall of assets #2,901,000
(31 May 2003 - increase of #2,901,000; 30 November 2002 - increase
of #9,479,000). Both the revenue and capital returns are based on
107,402,735 (31 May 2003 - 107,418,762; 30 November 2002 -
107,434,702) Ordinary shares, being the weighted average number of
Ordinary shares in issue during the period.
The capital return per ZDP share is based on appropriations in
respect of ZDP shares of #4,231,000 (31 May 2003 - #9,999,000; 30
November 2002 - #5,422,000) plus the decrease in the shortfall of
assets of #2,901,000 (31 May 2003 - increase of #2,901,000; 30
November 2002 - increase of #9,479,000) and on 102,249,156 (31 May
2003 - 106,967,404; 30 November 2002 - 107,346,330) ZDP shares,
being the weighted average number of ZDP shares in issue during the
period.
FRS 4 basis:
The revenue return per Ordinary share is based on the net revenue
return for the period of #1,768,000 (31 May 2003 - #5,709,000; 30
November 2002 - #2,022,000) and the capital return per Ordinary
share is based on net capital gains for the period of #21,530,000
(31 May 2003 - losses of #45,662,000; 30 November 2002 - losses of
#52,143,000) after the deduction in respect of the ZDP shares of
#4,231,000 (31 May 2003 - #9,999,000; 30 November 2002 -
#5,422,000). Both the revenue and capital returns are based on
107,402,735 (31 May 2003 - 107,418,762; 30 November 2002 -
107,434,702) Ordinary shares, being the weighted average number of
Ordinary shares in issue during the period.
The capital return per ZDP share is based on appropriations in
respect of the ZDP Preference shares of #4,231,000 (31 May 2003 -
#9,999,000; 30 November 2002 - #5,422,000) and on 102,249,156 (31
May 2003 - 106,967,404; 30 November 2002 - 107,346,330) ZDP shares,
being the weighted average number of ZDP shares in issue during the
period.
Six Six Year
months months ended
ended ended 31 May
30 Nov 30 Nov 2003
2003 2002
Reconciliation of FRS 4 basis to an #'000 #'000 #'000
Articles basis:
Capital returns/
(losses)
Zero Dividend Preference (ZDP)
shares
FRS 4 basis ZDP capital 4,231 5,422 9,999
return
Movement in ZDP entitlement 2,901 (9,479) (2,901)
shortfall* --------- --------- --------
Articles basis ZDP capital return/ 7,132 (4,057) 7,098
(loss) --------- --------- --------
Ordinary shares
FRS 4 basis Ordinary capital 21,530 (52,143) (45,662)
return/(loss)
Movement in ZDP entitlement (2,901) 9,479 2,901
shortfall*
--------- --------- --------
Articles basis Ordinary capital 18,629 (42,664) (42,761)
return/(loss) --------- --------- --------
* see note 2 for further information.
2. Net Asset Value per share
The Net Asset Value per share and the Net Asset Values attributable
to each class of share at the period end, calculated in accordance
with the Articles of Association and FRS 4 are shown on the Balance
Sheet.
Articles of Association basis:
On a winding up and under an Articles of Association basis, the
shortfall in assets would reduce the amount available to distribute
against the Zero Dividend Preference ('ZDP') share entitlement by nil
(31 May 2003 - #2,901,000, from #145,649,000 to #142,748,000; 30
November 2002 - #9,479,000, from #142,677,000 to #133,198,000). At 30
November 2003 there was a shortfall in assets attributable to the ZDP
shares under an Articles of Association basis of nil (31 May 2003 -
#2,901,000; 30 November 2002 - #9,479,000).
The Net Asset Value per Ordinary share has been attributed in
accordance with the Articles of Association of the Company on a
return of assets, or liquidation, or otherwise. If the ZDP shares are
fully covered, the Ordinary shares are entitled to receive any
remaining surplus after liabilities on winding up.
The Net Asset Value per Ordinary share is based on total equity
Shareholders' funds of #16,905,000 (31 May 2003 - nil; 30 November
2002 - nil) and on 107,402,735 (31 May 2003 and 30 November 2002 -
107,402,735) Ordinary shares, being the number of Ordinary shares in
issue at the period end.
The Net Asset Value per ZDP share is based on total non-equity
Shareholders' funds of #144,043,000 (31 May 2003 - #142,748,000; 30
November 2002 - #133,198,000) after deduction of the shortfall in
assets of nil (31 May 2003 - #2,901,000; 30 November 2002 -
#9,479,000) and on 100,322,828 (31 May 2003 - 105,429,363; 30
November 2002 - 107,314,363) ZDP shares, being the number of ZDP
shares in issue at the period end.
FRS 4 basis:
The Net Asset value per Ordinary share is based on total equity Shareholders'
funds of #16,905,000 (31 May 2003 - deficit of #2,901,000; 30 November 2002 -
deficit of #9,479,000) and on 107,402,735 (31 May 2003 and 30 November 2002 -
107,402,735) Ordinary shares, being the number of Ordinary shares in issue at
the period end.
The Net Asset Value per ZDP share is based on total non-equity Shareholders'
funds of #144,043,000 (31 May 2003 - #145,649,000; 30 November 2002 -
#142,677,000) and on 100,322,828 (31 May 2003 - 105,429,363; 30 November 2002
- 107,314,363) ZDP shares, being the number of ZDP shares in issue at the
period end.
A reconciliation of FRS 4 to an Articles of Association basis for each
class of share can be seen below:
Net Asset Value per share Shareholders' funds
30 Nov 30 Nov 31 May 30 Nov 30 Nov 31 May
2003 2002 2003 2003 2002 2003
p p p #'000 #'000 #'000
FRS 4 ZDP shares net 143.6 132.9 138.1 144,043 142,677 145,649
assets attributable
ZDP entitlement - (8.8) (2.7) - (9,479) (2,901)
shortfall ------- ------- ------- ------- ------- -------
Non-equity shares - ZDP 143.6 124.1 135.4 144,043 133,198 142,748
entitlement ------- ------- ------- ------- ------- -------
FRS 4 Ordinary shares net 15.7 (8.8) (2.7) 16,905 (9,479) (2,901)
assets attributable
ZDP entitlement - 8.8 2.7 - 9,479 2,901
shortfall ------- ------- ------- ------- ------- -------
Equity shares - Ordinary 15.7 - - 16,905 - -
entitlement ------- ------- ------- ------- ------- -------
3. The financial information for the six months ended 30 November 2003
and 30 November 2002 comprises non-statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The financial
information for the year ended 31 May 2003 has been abridged from
published accounts that have been delivered to the Registrar of
Companies and on which the report of the auditors was unqualified.
The interim accounts have been prepared on the same basis as the
annual accounts.
By order of the Board
Aberdeen Asset Management PLC, Secretary
19 January 2004
A full copy of the interim accounts will be printed and issued to shareholders.
Copies of this announcement will be available to the public at the registered
office of the Company, 123 St Vincent Street, Glasgow G2 5EA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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