Final Results

ABERDEEN NEW DAWN INVESTMENT TRUST PLC PRELIMINARY ANNOUNCEMENT OF ANNUAL UNAUDITED RESULTS for the year ended 30 April 2004 Chairman's Statement I am pleased to report our year to 30 April 2004 saw Asian markets register strong gains and our net asset value climbed by 49.4%, significantly outperforming our benchmark MSCI AC Asia Pacific (ex-Japan) Index, which rose 29.1%. The share price has increased by 61.7% aided by a further contraction in the discount to NAV. The dividend is being maintained following last year's strong increase. This consolidates the impressive performance reported in our interim statement, the origins of which lay in the depressed sentiment that prevailed following the Iraq war and the outbreak of SARS. When their influence declined, an influx of liquidity, the release of pent-up demand and an increase in risk tolerance all helped to ignite a powerful rebound in Asia's stock markets. But as detected last time, it was the peripheral markets that led rallies; indeed, these continued until early this year. India, Indonesia and Thailand were key performers, gaining 81.2%, 65.7% and 71.8%, respectively, in sterling-adjusted terms. The laggards were Australia and Malaysia, increasing by 21.2% and 23.6%, respectively. Our substantial overweight to India at a time when China has been a more pervasive influence was crucial. India's economy grew briskly and this was reflected in the stock market. Comparing these two very different countries is instructive: whereas China has developed a leading market economy inside two decades, its best companies are still, in effect, state champions, and the private sector is difficult to access, at least at attractive valuations. India, by contrast, has suffered from political red-tape and its highly entrepreneurial companies have learnt to prosper notwithstanding this impediment. The taste for reform is as recent therefore as it is welcome, turning the spotlight on a range of opportunities from widely talked about services outsourcing to drug manufacturers, financials and infrastructure. The defeat of the BJP in April's elections wrong-footed observers, but the commitment by the incoming Congress-led coalition to structural change is encouraging. This year has also seen elections in Malaysia, Taiwan, the Philippines and India, with Indonesia imminent. Generally, the peaceful transition to new leaders and/ or regimes marks a maturing in domestic politics. Last year's upbeat mood has recently given way to caution and, at the time of writing, Asian markets are consolidating. The grounds for this are various. Leveraged investors who used the falling dollar and cheap borrowing have aggressively sold regional investments. This profit-taking has been underscored by geopolitical concerns and signs of inflationary pressures. Other threats include the recent rise in oil prices and the possibility of a 'hard landing' in China. However, we believe that these worries may be exaggerated. Local price pressures remain muted, while strong current account surpluses suggest that higher oil import bills can be absorbed, at least for a few months (a handful of countries are anyway oil producers). As for China, the government has been pro-active in implementing further measures to rein in growth, including raising the reserve ratio requirements for banks and ordering financial institutions to limit loan disbursements to sectors such as iron and steel, machinery and petrochemicals. The impact of US interest rate rises may be overstated too, and at this point we do not expect substantial rises given the still flattish economy. Despite the widely anticipated slowdown in Chinese growth we still expect its GDP to increase by at least seven per cent this calendar year and the region overall by around five per cent. Hugh Young and his team in Singapore visited over a thousand companies last year and it is this fundamental and in depth research that has led to your Company consistently performing well in the region. They report strong earnings growth from companies amid a general return to growth. With stock markets having corrected some 10%-20% from their recent peaks, many are looking good value once again. Speculative excess has largely washed out, and we have been looking for opportunities to add to holdings on price weakness and increase our gearing. It is worth reminding of continued progress being made by companies. Standards of corporate governance and transparency are steadily improving, and this is reflected indirectly in better returns. Where necessary we are engaging management to ensure that Shareholder interests are being properly attended to. Governments are also continuing to press for better disclosure. Outlook The next twelve months are unlikely to be as rewarding as the period just ended. But there is plenty of upside, for the confidence within Asia is returning, and undoubtedly the region will be fuelling the world's growth over the years to come. Looking ahead, I am cautiously optimistic that Asian economies can grow at a healthy pace in the coming 12 months and remain confident that our investment strategy will maximise returns for Shareholders. Richard Clough Chairman 5 July 2004 Statement of Total Return ------ ------- ------- -------------------------- Year ended Year ended 30 April 2004 30 April 2003 Notes (unaudited) (audited) ------- ------- Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 -------------------------- ------ ------- ------ ------ ------- ------ ------ Gains/(losses) on - 22,974 22,974 - (12,613) (12,613) investments Income 2 2,404 - 2,404 2,447 - 2,447 Investment management (275) (275) (550) (219) (219) (438) fee Administration expenses (376) - (376) (367) - (367) Exchange (losses)/gains (51) 325 274 (47) 473 426 -------------------------- ------ ------- ------ ------ ------- ------ ------ Net return before finance 1,702 23,024 24,726 1,814 (12,359) (10,545) costs and taxation Interest payable and (74) (74) (148) (91) (91) (182) similar charges ------ ------- ------ ------ ------- ------ ------ -------------------------- Net return on ordinary 1,628 22,950 24,578 1,723 (12,450) (10,727) activities before taxation Taxation on ordinary (504) (13) (517) (537) 93 (444) activities ------ ------- ------ ------ ------- ------ ------ -------------------------- Net return on ordinary 1,124 22,937 24,061 1,186 (12,357) (11,171) activities after taxation Dividends in respect of 1 (884) - (884) (884) - (884) equity shares ------ ------- ------ ------ ------- ------ ------ -------------------------- Transfer to/(from) 240 22,937 23,177 302 (12,357) (12,055) reserves Return per Ordinary share 3 4.83 98.58 103.41 5.10 (53.11) (48.01) (pence): ====== ======= ====== ====== ======= ====== ====== ========================== The revenue column of this statement represents the revenue account of the Company. All revenue and capital items in the above statement derive from continuing operations. Balance Sheet ------------------------------------ ------ --------- --------- As at As at 30 April 2004 30 April 2003 (unaudited) (audited) --------- --------- Notes £'000 £'000 ------------------------------------ ------ --------- --------- Fixed assets Listed investments 77,230 51,318 ------------------------------------ ------ --------- --------- Current assets Debtors 822 471 Cash at bank and in hand 1,216 1,308 ------------------------------------ ------ --------- --------- 2,038 1,779 Creditors: amounts falling due (8,947) (6,079) within one year ------ --------- --------- ------------------------------------ Net current liabilities (6,909) (4,300) ------------------------------------ ------ --------- --------- Total assets less current 70,321 47,018 liabilities Provision for liabilities and (224) (98) charges ------ --------- --------- ------------------------------------ Net assets 70,097 46,920 ------------------------------------ ------ --------- --------- Share capital and reserves Called-up share capital 5,817 5,817 Share premium account 9,317 9,317 Special reserve 14,138 14,138 Other reserves: Redemption reserve 10,207 10,207 Capital reserve - realised 6,119 4,688 Capital reserve - unrealised 21,791 285 Revenue reserve 2,708 2,468 ------------------------------------ ------ --------- --------- Equity Shareholders' funds 70,097 46,920 ------------------------------------ ------ --------- --------- Net asset value per Ordinary share 4 301.27 201.66 (pence): ------ --------- --------- ------------------------------------ Cash Flow Statement ------------------------------- -------- -------- Year ended Year ended 30 April 2004 30 April 2003 (unaudited) (audited) -------- -------- £'000 £'000 £'000 £'000 ------------------------------- -------- ------- -------- ------- Net cash inflow from operating 1,303 1,037 activities Servicing of finance Bank and loan interest paid (143) (178) Taxation Net UK tax paid (146) (64) Withholding tax recovered/(paid) 7 (4) ------------------------------- -------- ------- -------- ------- Net tax paid (139) (68) Financial investment Purchases of investments (9,795) (9,041) Sales of investments 6,252 7,389 ------------------------------- -------- ------- -------- ------- Net cash outflow from financial (3,543) (1,652) investment Equity dividend paid (884) (698) ------------------------------- -------- ------- -------- ------- Net cash outflow before financing (3,406) (1,559) Financing Drawdown of loans 3,334 1,559 ------------------------------- -------- ------- -------- ------- Decrease in cash (72) - ------------------------------- -------- ------- -------- ------- Reconciliation of net cash flow to movements in net debt Decrease in cash as above (72) - Cash inflow from drawdown of loans (3,334) (1,559) ------------------------------- -------- ------- -------- ------- Change in net debt resulting from (3,406) (1,559) cash flows Exchange movements 325 473 ------------------------------- -------- ------- -------- ------- Movement in net debt in the year (3,081) (1,086) Opening net debt (3,251) (2,165) ------------------------------- -------- ------- -------- ------- Closing net debt (6,332) (3,251) ------------------------------- -------- ------- -------- ------- Notes 1. Dividend The Directors have today declared a first and final dividend of 3.80p per Ordinary share for the year ended 30 April 2004 (2003 - 3.80p) which, if approved by Shareholders at the Annual General Meeting, will be payable on 27 August 2004 to Shareholders on the register on 16 July 2004 (Provisional Ex-Dividend 14 July 2004). 2. Income 2004 2003 £'000 £'000 Income from investments UK dividend income 75 66 Overseas dividends 2,303 2,214 Scrip dividends 9 143 --------- --------- 2,387 2,423 --------- --------- Other income Deposit interest 17 24 --------- --------- Total income 2,404 2,447 --------- --------- 3. Return per share 2004 2003 Revenue Capital Total Revenue Capital Total p p p p p p Ordinary 4.83 98.58 103.41 5.10 (53.11) (48.01) ------- ------ ------ ------- ------ ------ The revenue return per Ordinary share is based on net revenue on ordinary activities after taxation of £1,124,000 (2003 - £1,186,000) and on 23,267,133 (2003 - 23,267,133) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. The capital return per Ordinary share is based on a net capital return for the year of £22,937,000 (2003 - loss of £12,357,000) and on 23,267,133 (2003 - 23,267,133) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. 4. 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 2004 2003 2004 2003 p p £'000 £'000 Ordinary shares 301.27 201.66 70,097 46,920 ------- ------- -------- -------- The movements during the year of the assets attributable to the Ordinary shares were as follows: 2004 2003 £'000 £'000 Net assets attributable at 1 May 46,920 58,975 Capital return/(loss) for the year 22,937 (12,357) Revenue on ordinary activities after taxation 1,124 1,186 Dividends appropriated in the year (884) (884) -------- -------- Net assets attributable at 30 April 70,097 46,920 -------- -------- The net asset value per Ordinary share is based on net assets, and on 23,267,133 (2003 - 23,267,133) Ordinary shares, being the number of Ordinary shares in issue at the year end. 5. The financial information for the year ended 30 April 2004 comprises non-statutory accounts within the meaning of section 240 of the Companies Act 1985. The financial information for the year ended 30 April 2003 has been abridged from the published accounts that have been delivered to the Register of Companies and on which the report of the auditors is unqualified and does not contain a statement under section 237 (2) or (3) of the Companies Act 1985. The statutory accounts for 2004 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies in due course. 6. Copies of the Annual Report will be posted to all 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 5 July 2004

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