Interim Results

THE THROGMORTON TRUST PLC INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 31 MAY 2006 KEY POINTS • Continued outperformance against FTSE SmallCap (Ex IC) Index • Net Asset Value per Ordinary Share at 31 May 2006, 183.21p (with prior charges at market value) • Interim Dividend 0.5p (2005 - 0.5p). This dividend, which will be paid on 18 August 2006, is not provided for in these accounts (see notes 2 and 5) NET ASSET VALUE 31.05.06 30.11.05 Change Restated * The Throgmorton Trust PLC - prior charges at market 183.21p 164.01p +11.7% value - prior charges at par 190.18p 171.62p +10.8% - Share Price 154.50p 142.00p +8.8% - FTSE SmallCap (ex IC) 3,344.3 3,108.9 +7.6% - FTSE All-Share 2,916.9 2,741.1 +6.4% * Restated for changes in accounting polices (note 2) CHAIRMAN'S STATEMENT The half year on which we are reporting breaks into two distinct periods. From December until early May, we had strong markets and our net asset value grew at a most satisfactory rate, advancing by 20.2%, valuing our debt at market prices. This compared with a rise of 12.4% in the FTSE SmallCap index. In May, worries emerged about inflation and a possible rise in interest rates and the market fell sharply. By 31 May 2006, the rise in our net asset value had been trimmed to 11.7% (valuing debt at market prices), but despite giving up some of our relative outperformance from the earlier period, we still outperformed the benchmark over the period as whole with the FTSE SmallCap index rising only 7.6%. Shareholders will notice certain changes in the accounts this year as a result of the issue of new UK Financial Reporting Standards with which we have to comply. The main changes are that we now value the Trust's investments at bid, rather than mid, market value, and that dividends paid to shareholders are accounted for in the period in which they are paid and not that to which they relate. There have also been some changes in presentation so that the Income Statement, which replaces the Statement of Total Return, no longer reflects dividend payments and these appear only in the reconciliation of movement in shareholders' funds in the period in which they are paid. In previous statements, I have commented on the level of the discount at which the Trust's shares trade against net asset value. Despite the fact that the board has continued its policy of buying in shares and in the period bought in 4.6 million shares, the discount has been volatile and closed the period at 15.7%. The Board has been exploring ways of promoting the company more effectively and has been discussing with the managers how the marketing of shares can be improved. The market in smaller company shares has fallen further since 31 May. The FTSE SmallCap index has fallen by 2.5% and Throgmorton Trust's net asset value has fallen by a similar amount. We view this as a healthy correction and do not consider it to be the start of a bear market. We would expect the market to remain volatile until the autumn, but, in our view, the prospects for well managed smaller companies to appreciate in the medium to long term remain good. Richard Bernays Chairman 10 July 2006 Income Statement Six Months to 31 May 2006 Revenue Capital Total £000s £000s £000s Realised gains and losses - 33,003 33,003 Unrealised gains and losses - 2,758 2,758 Income 2,967 - 2,967 Investment management fee (761) (761) (1,522) Other expenses (221) - (221) Net return before finance costs and 1,985 35,000 36,985 taxation Interest payable and similar (985) (953) (1,938) charges Premium paid on repurchase of - - - debenture stock Return on ordinary activities 1,000 34,047 35,047 before taxation Tax on ordinary activities - - - Return on ordinary activities after taxation attributable to equity shareholders 1,000 34,047 35,047 Return per ordinary share: 0.55p 18.85p 19.40p Basic Six Months to 31 May 2005 Revenue Capital Total Restated* Restated* Restated* £000s £000s £000s Realised gains and losses - 41,170 41,170 Unrealised gains and losses - (7,684) (7,684) Income 2,937 - 2,937 Investment management fee (713) (713) (1,426) Other expenses (234) - (234) Net return before finance costs and 1,990 32,773 34,763 taxation Interest payable and similar (988) (953) (1,941) charges Premium paid on repurchase of - (9) (9) debenture stock Return on ordinary activities 1,002 31,811 32,813 before taxation Tax on ordinary activities - - - Return on ordinary activities after taxation attributable to equity shareholders 1,002 31,811 32,813 Return per ordinary share (Basic) 0.47p 14.91p 15.38p Full Year to 30 November 2005 Revenue Capital Total Restated* Restated* Restated* £000s £000s £000s Realised gains and losses - 70,184 70,184 Unrealised gains and losses - 3,466 3,466 Income 7,064 - 7,064 Investment management fee (1,439) (1,439) (2,878) Other expenses (459) - (459) Net return before finance costs and 5,166 72,211 77,377 taxation Interest payable and similar (1,973) (1,906) (3,879) charges Premium paid on repurchase of - (9) (9) debenture stock Return on ordinary activities 3,193 70,296 73,489 before taxation Tax on ordinary activities - - - Return on ordinary activities after taxation attributable to equity shareholders 3,193 70,296 73,489 Return per ordinary share (Basic) 1.58p 34.84p 36.43p * Restated for changes in accounting polices (note 2) Summarised Balance Sheet 31 May 2006 31 May 2005 30 Nov 2005 Restated* Restated* £000s £000s £000s Fixed asset investments Portfolio investments 363,868 312,913 327,488 Subsidiary undertakings 2,494 2,429 2,439 366,362 315,342 329,927 Current assets Debtors 894 2,967 2,603 Cash at bank 8,311 9,933 19,347 9,205 12,900 21,950 Creditors - due within 1 year Creditors (4,812) (3,572) (6,324) Total assets less current liabilities 370,755 324,670 345,553 Creditors - due after 1 year: Debenture stock (17,169) (17,169) (17,169) Loan from group company (15,000) (15,000) (15,000) (32,169) (32,169) (32,169) 338,586 292,501 313,384 Capital and reserves Share capital 8,902 9,768 9,130 Share premium 35,272 35,272 35,272 Revenue reserves 4,571 4,601 5,816 Other reserves 289,841 242,860 263,166 Total shareholders' funds 338,586 292,501 313,384 Net Asset Value per ordinary share 190.18p 149.73p 171.62p Net Asset Value Adjusted for 'Fair 183.21p 142.42p 164.01p Value' of Debt Number of ordinary shares in issue 178,030,869 195,355,869 182,605,869 * Restated for changes in accounting polices (note 2) Reconciliation of movement in shareholder funds Share Share Capital Capital Capital Revenue Total Reserve Reserve Capital Premium Redemption Unrealised Reserve Realised Account Reserve £000s £000s £000s £000s £000s £000s £000s Balance brought forward 30 November 2004 11,488 35,272 3,702 70,279 186,940 3,350 311,031 (as previously reported) Add back accrued - - - - - 2,527 2,527 dividend at 30 November 2004 Less investment - - - (5,006) - - (5,006) valuation restatements Balance at 30 11,488 35,272 3,702 65,273 186,940 5,877 308,552 November 2004 (restated) Dividends paid - - - - - (2,527) (2,527) during year re 2004 Return attributed - - - 3,618 66,830 3,193 73,641 to shareholders in 2005 (as previously stated) Shares repurchased (2,358) - 2,358 - (65,403) - (65,403) by the company Less investment - - - (152) - - (152) valuation restatements Dividends paid - - - - - (727) (727) during year re 2005 Balance at 30 9,130 35,272 6,060 68,739 188,367 5,816 313,384 November 2005 (restated) Dividends paid - - - - - (2,245) (2,245) during year re 2005 Return attributable - - - 2,906 31,289 1,000 35,195 to shareholders in 2006 Share repurchased (228) - 228 - (7,600) - (7,600) by the company in 2006 Less investment - - - (148) - - (148) valuation restatements Dividends paid - - - - - - - during year re 2006 Balance as at 31 8,902 35,272 6,288 71,497 212,056 4,571 338,586 May 2006 Cash Flow Statement Six months Six months to Year to to 31 May 2006 31 May 2005 30 Nov 2005 £000s £000s £000s Net cash inflow from operating 1,946 1,856 5,261 activities Servicing of finance Interest paid (1,938) (1,940) (3,879) Capital expenditure and financial investment Net (purchases)/sales of investments (540) 59,490 87,343 Capital management fee (741) (725) (1,435) Net payments from subsidiaries 79 27 625 Net cash (outflow)/inflow from (1,202) 58,792 86,533 investing activities Dividends Dividends paid - equity shares (2,245) (2,278) (3,254) Net cash (outflow)/inflow before (3,439) 56,430 84,661 financing Financing Repurchase of ordinary shares (7,597) (46,586) (65,403) Repurchase of debenture stock - (34) (34) Net cash outflow from financing (7,597) (46,620) (65,437) (Decrease)/increase in cash (11,036) 9,810 19,224 Notes 1. The Trust's figures for the six months to 31 May 2006 and the comparative figures for the corresponding period in the previous financial year are unaudited; those for the year to 30 November 2005 are based on the Trust's accounts for that period, which carry an unqualified report from the auditors and have been filed with the Registrar of Companies. Comparative figures have been restated for changes in accounting polices (see note 2 below). 2. Changes in accounting policies: Under FRS26: "Financial Instruments: Measurements" the company has designated its assets and liabilities as being measured as "fair value through profit and loss". The fair value of fixed asset investments is deemed to be market bid value at the close of business on the balance sheet date. Previously the investments were valued at market mid value. Under FRS21: "Events after the Balance Sheet Date" dividends declared and approved by the company after the balance sheet date should not be recognised as a liability of the company at the balance sheet date. Previously, the company accrued the dividends in the period in which the net revenue, to which those dividends related, was accounted for. Also under FRS25, dividends are no longer shown on the Statement of Total Return but are shown in the Reconciliation of Movement in Shareholders' Funds. 3. In accordance with Financial Reporting Standard 16 Current Taxation, UK dividend income has been shown net of its attributable tax credits. 4. Management fees payable and finance costs of debt are each currently allocated 50% to capital and 50% to revenue. 5. The directors have declared an interim dividend of 0.5p per share (2005 - 0.5p) payable on 18 August 2006 to shareholders on the register at the close of business on 21 July 2006. 6. The net asset value per ordinary 5p share (deducting prior charges at par value) is based on the shares in issue, the market value of listed investments and other net assets and liabilities. In accordance with the AITC recommendations, the Trust has published net asset values with prior charges valued at 'Fair Value' in addition to the net asset values with prior charges valued at par. 7. Copies of the 2005 annual report and the 2006 interim results are available from the Trust's registered office, 155 Bishopsgate, London EC2M 3XJ. 8. The Trust's balance sheets as at 31 May 2006, 31 May 2005 and 30 November 2005 are shown above in summary form and have been extracted from unaudited and audited accounts respectively as described in Note 1. 9. Group accounts have not been prepared, as in the opinion of the directors, the inclusion of the remaining subsidiary undertakings, taken together, is not material for the purpose of giving a true and fair view. 10. Restatement of opening balances. A reconciliation is given between the closing balances per 31 May 2005 and 30 November 2005 accounts as previously stated and the revised balances resulting from the changes in accounting polices described in note 2. Restatement of opening balances Previously Adjustment Restated Previously Adjustment Restated reported 30 Nov reported 31 May 2005 2005 30 Nov 31 May 2005 2005 £000s £000s £000s £000s £000s £000s Fixed assets Investments at fair 335,085 (5,158) 329,927 319,964 (4,622) 315,342 value (A) Current assets Debtors 2,603 - 2,603 2,967 - 2,967 Cash at bank 19,347 - 19,347 9,933 - 9,933 21,950 - 21,950 12,900 - 12,900 Creditors: amounts falling due within one year Creditors (6,324) - (6,324) (3,572) - (3,572) Dividends payable (2,283) 2,283 - (977) 977 - (B) (8,607) 2,283 (6,324) (4,549) 977 (3,572) Net current assets 13,343 2,283 15,626 8,351 977 9,328 Total assets less 348,428 (2,875) 345,553 328,315 (3,645) 324,670 current liabilities Creditors: amounts falling due after more than one year Debenture stock and (32,169) - (32,169) (32,169) - (32,169) bank loans Net assets 316,259 (2,875) 313,384 296,146 (3,645) 292,501 Capital and 9,130 - 9,130 9,768 - 9,768 reserves Called up share capital Share premium 35,272 - 35,272 35,272 35,272 account Capital reserves Capital redemption 6,060 - 6,060 5,422 - 5,422 reserve Capital reserves - 73,897 (5,158) 68,739 62,211 (4,622) 57,589 unrealised (A) Capital reserves - 188,367 - 188,367 179,849 - 179,849 realised 268,324 (5,158) 263,166 247,482 (4,622) 242,860 Revenue reserve (B) 3,533 2,283 5,816 3,624 977 4,601 Equity 316,259 (2,875) 313,384 296,146 (3,645) 292,501 shareholders' funds Net asset value per share ordinary share 173.19p (1.57)p 171.62p 151.59p (1.87)p 149.73p (A) Effect of evaluation of investments from mid to bid value (see note 2 above) (B) Effect of not recognising the proposed final dividends declared after the balance sheet date (see notes 2 and 5 above).

Companies

Blackrock Throgmorton Trust (THRG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today