Final Results

Aberdeen All Asia Inv Tst PLC 30 May 2007 ABERDEEN ALL ASIA INVESTMENT TRUST PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2007 Chairman's Statement Performance The past 12 months were rewarding for most Asian markets, although notable corrections in May last year, and again this February, triggered bouts of profit taking and increased volatility. Performance was varied, with several of last year's high flyers such as India and Indonesia giving up ground in the first quarter of 2007, whilst some laggards such as Malaysia returned to favour against a backdrop of market-friendly government initiatives and an improvement in economic fundamentals. The key underperformer over the period was Japan, amid continued questions about the sustainability of the economic recovery in the face of persistent deflationary pressures. Over the 12 months to end March 2007, the Company's net asset value fell by 7.33% to 239.87p and the share price dropped by 10.30% to 215.50p, which puts it behind the benchmark MSCI AC Asia Pacific Index, which declined 0.3% in sterling terms. This followed a good year last year, when the Company's net asset value rose by 53.5%, comfortably ahead of the benchmark at 45.8%. Since Aberdeen Asset Management Asia ("AAM Asia") took over as Manager of the Company on 10 November 2006, the net asset value of the Company rose by 3.94% against a 7.74% gain by its benchmark. The major reason for our underperformance was the lacklustre performance of our Japanese shares. The re-alignment of the portfolio in November last year (which roughly halved the Japanese weighting to around 24% of the portfolio), has helped this relative underperformance narrow. Portfolio Activity Your Manager reported at the interim stage their intention to re-align the portfolio swiftly to a relatively concentrated list of investments, which was successfully completed, via a programme trade in mid-November. The resultant portfolio has 55 investments. The asset allocation and brief details of these stocks are given in the Annual Report and Accounts. The Manager's relatively concentrated style of investing has been, in large measure, the reason for AAM Asia's successful record, but in the short term, it can mean considerable divergence from the benchmark. Further rationale for the portfolio activity is given within the Manager's Review which appears in the Annual Report and Accounts. Board The Board has a defined plan for retirement and succession of Directors, and, in accordance with this plan, Mr Keith Mackrell will retire at the forthcoming AGM. I would like to thank Mr Mackrell warmly for his valuable contribution to the Board over his period of service. Investment Manager As I reported at the interim stage, shareholders voted in favour of the appointment of AAM Asia as Manager at the Company's EGM held in November 2006. The Board will undertake a detailed review of the performance of the Manager later in the current financial year. Given the long-term track record of the investment team in the region, the Board believes that the continuing appointment of AAM Asia is in the interests of shareholders as a whole. Outlook Although Asia's economies appear generally healthy, some caution is merited. Valuations have run up in several markets, while hot money flows continue to drive up share prices and point to speculative excess in China. There are also external risks that need careful monitoring, particularly the potential of a slowdown in the US economy. Any of these factors could trigger a sudden reversal. The sharply reduced allocation to the Japanese market reflects the new Manager's current view on both the 'quality' and 'valuations' of the Japanese companies. On both counts, the Manager believes that better quality companies and at cheaper valuations can be found elsewhere in Asia. This is further supported at the macroeconomic level, where Japan's economic recovery continues to be hesitant. So although we expect 2007 to be supportive for equity markets, given favourable earnings growth and ample liquidity, we will maintain our strategy of investing in professionally run companies that have healthy balance sheets, whilst being mindful of their valuations. Borrowings, at 4%, reflect an element of caution. David Price Chairman 30 May 2007 INCOME STATEMENT (UNAUDITED) Year ended 31 March 2007 Year ended 31 March 2006 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 (Losses)/gains on investments - (3,407) (3,407) - 15,866 15,866 Income 747 - 747 580 - 580 Exchange gains - 328 328 - 4 4 Investment management fee (295) - (295) (296) - (296) Performance fee - 9 9 - (387) (387) Administration expenses (232) (161) (393) (225) (305) (530) ________ ________ ________ ________ ________ ________ Net return before finance costs 220 (3,231) (3,011) 59 15,178 15,237 and taxation Interest payable and similar (90) - (90) (117) - (117) charges ________ ________ ________ ________ ________ ________ Net return on ordinary 130 (3,231) (3,101) (58) 15,178 15,120 activities before taxation Tax on ordinary activities (52) - (52) (66) - (66) ________ ________ ________ ________ ________ ________ Net return on ordinary 78 (3,231) (3,153) (124) 15,178 15,054 activities after taxation ________ ________ ________ ________ ________ ________ Return per Ordinary share 0.47 (19.36) (18.89) (0.74) 90.96 90.22 (pence): ________ ________ ________ ________ ________ ________ The total column of this statement represents the profit and loss account of the Company. No Statement of Total Recognised Gains and Losses has been prepared as all gains and losses have been reflected in the Income Statement. All revenue and capital items in the above statement derive from continuing operations. The accompanying notes are an integral part of the financial statements. BALANCE SHEET (UNAUDITED) As at As at 31 March 2007 31 March 2006 £'000 £'000 Non-current assets Investments at fair value through profit or loss 41,407 49,287 _________ _________ Current assets Debtors 187 1,163 Cash at bank and in hand 213 332 _________ _________ 400 1,495 _________ _________ Creditors: amounts falling due within one year Foreign currency loans (1,681) (5,942) Other creditors (100) (1,661) _________ _________ (1,781) (7,603) _________ _________ Net current liabilities (1,381) (6,108) _________ _________ Net assets 40,026 43,179 _________ _________ Share capital and reserves Called-up share capital 1,669 1,669 Special reserve 2,961 2,961 Capital redemption reserve 2,063 2,063 Capital reserve - realised 32,471 32,219 Capital reserve - unrealised 1,381 4,864 Revenue reserve (519) (597) _________ _________ Equity Shareholders' funds 40,026 43,179 _________ _________ Net asset value per Ordinary share (pence): 239.87 258.76 _________ _________ RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (UNAUDITED) For the year ended 31 March 2007 Share Capital Capital Capital Share premium redemption reserve - reserve - Revenue capital account reserve realised unrealised reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 March 2006 1,669 2,961 2,063 32,219 4,864 (597) 43,179 Return on ordinary activities - - - 252 (3,483) 78 (3,153) after taxation ______ _________ __________ _______ ________ _________ _________ Balance at 31 March 2007 1,669 2,961 2,063 32,471 1,381 (519) 40,026 ______ _________ __________ _______ ________ _________ _________ For the year ended 31 March 2006 Capital Capital Capital Share Special redemption reserve reserve Revenue capital reserve reserve realised unrealised reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 March 2005 1,669 2,961 2,063 22,116 (211) (473) 28,125 Return on ordinary activities - - - 10,103 5,075 (124) 15,054 after taxation ______ _________ __________ _______ ________ _________ _________ Balance at 31 March 2006 1,669 2,961 2,063 32,219 4,864 (597) 43,179 ______ _________ __________ _______ ________ _________ _________ CASH FLOW STATEMENT (UNAUDITED) Year ended Year ended 31 March 2007 31 March 2006 £'000 £'000 £'000 £'000 Net cash (outflow)/inflow from operating activities (197) 41 Servicing of finance Bank and loan interest paid (85) (115) Financial investment Purchases of investments (79,603) (118,111) Sales of investments 83,724 115,292 Expenses allocated to capital (22) (36) ________ ________ ________ ________ Net cash inflow/(outflow) from financial investment 4,099 (2,855) ________ ________ Net cash inflow/(outflow) before financing 3,817 (2,929) Financing Loan (repaid)/drawndown (4,041) 3,042 ________ ________ Net cash (outflow)/inflow from financing (4,041) 3,042 ________ ________ (Decrease)/increase in cash (224) 113 ________ ________ Reconciliation of net cash flow to movements in net debt (Decrease)/increase in cash as above (224) 113 Decrease/(increase) in borrowings 4,041 (3,042) ________ ________ Change in net debt resulting from cash flows 3,817 (2,929) Exchange movements 328 4 ________ ________ Movement in net debt in the year 4,145 (2,925) Opening net debt (5,613) (2,688) ________ ________ Closing net debt (1,468) (5,613) ________ ________ Notes to the Financial Statements (UNAUDITED) For the year ended 31 March 2007 1. Accounting policies (a) Basis of accounting The financial statements have been prepared under the historic cost convention, as modified to include the measurement of fair value of investments. The financial statements have been prepared in accordance with applicable UK Accounting Standards, with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' (issued January 2003 and revised in December 2005) and on the assumption that approval as an investment trust will continue to be granted. (b) Valuation of investments All investments are classified as held at "fair value" through profit or loss. They are initially recognised on the trade date and measured, then and subsequently, at fair value. Fair value is assumed to be the bid price, or last traded price where no bid is available. Changes in fair value are included in the Income Statement as capital, and are not distributable by way of a dividend. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Income Statement and are ultimately recognised in the unrealised capital reserve. (c) Income Dividends (other than special dividends), including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a time apportioned basis so as to reflect the effective yield on shares. Other returns on non-equity shares are recognised when the right to return is established. The fixed return on a debt security, if material, is recognised on a time apportioned basis so as to reflect the effective yield on each security. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital reserves. Interest receivable on bank balances is dealt with on an accruals basis. (d) Expenses All expenses are accounted for on an accruals basis. Expenses are charged to the revenue column of the Income Statement except as follows: - expenses which are incidental to the acquisition or disposal of an investment are charged to the capital column of the Income Statement and separately identified and disclosed in the notes to the accounts; and - expenses are charged to realised capital reserves where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect performance fees are charged 100% to realised capital reserves. (e) Taxation The charge for taxation is based on the revenue return for the financial period. Deferred taxation Deferred taxation is provided on all timing differences, that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Balance Sheet date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments. (f) Capital reserves Realised Gains or losses on investments realised in the year that have been recognised in the Income Statement are transferred to the realised capital reserve. In addition, any prior unrealised gains or losses on such investments are transferred from the unrealised capital reserve to realised capital reserve on disposal of the investment. Unrealised Increases and decreases in the fair value of investments are recognised in the Income Statement and are then transferred to the unrealised capital reserve. (g) Foreign currencies Transactions involving foreign currencies are converted at the rate ruling at the date of the transaction. Translation of all other foreign currency balances including foreign assets and foreign liabilities is at the middle rates of exchange at the year end. Differences arising from translation are treated as capital gain or loss to capital or revenue within the Income Statement depending upon the nature of the gain or loss. 2007 2007 2006 2006 2. Return per share p £'000 p £'000 The return per Ordinary share is based on the following figures: Revenue return 0.47 78 (0.74) (124) Capital return (19.36) (3,231) 90.96 15,178 _______ _______ _______ _______ Total return (18.89) (3,153) 90.22 15,054 _______ _______ _______ _______ Weighted average Ordinary shares in issue 16,686,767 16,686,767 3. Net asset value per share The net asset value per share and the net asset values attributable to Ordinary Shareholders at the year end calculated in accordance with the Articles of Association were as follows: Net asset value Net asset values per share attributable 2007 2006 2007 2006 p p £'000 £'000 Ordinary shares 239.87 258.76 40,026 43,179 _______ _______ _______ _______ The movements during the year of the assets attributable to the Ordinary shares were as follows:- 2007 2006 £'000 £'000 Net assets attributable at 1 April 43,179 28,125 Capital return for the year (3,231) 15,178 Revenue on ordinary activities after taxation 78 (124) _______ _______ Net assets attributable at 31 March 40,026 43,179 _______ _______ The net asset value per Ordinary share is based on net assets, and on 16,686,767 (2006 - 16,686,767) Ordinary shares, being the number of Ordinary shares in issue at the year end. 4. This preliminary statement is not the company's statutory accounts. The statutory accounts for the year ended 31 March 2006 have been delivered to the Registrar of Companies and received an audit report which was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain statements under s237(2) and (3) of the Companies Act 1985. The statutory accounts for the year ended 31 March 2007 have not yet been approved, audited or filed. 5. The Annual Report will be posted to Shareholders in due course and further copies may be obtained from the registered office, One Bow Churchyard, Cheapside, London EC4M 9HH. Aberdeen Asset Management PLC Secretaries 30 May 2007 This information is provided by RNS The company news service from the London Stock Exchange

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