Final Results

Aberdeen New Dawn Invest Trust PLC 11 July 2007 ABERDEEN NEW DAWN INVESTMENT TRUST PLC PRELIMINARY ANNOUNCEMENT OF ANNUAL AUDITED RESULTS for the year ended 30 April 2007 Background and Results In the year to 30 April 2007, the Company's net assets produced a total return of 10.2%, underperforming the MSCI AC Asia Pacific (ex Japan) Index's currency adjusted total return of 13.2%, with the prices of several of our long held investments understandably pausing for breath, following the strong performance of previous years. The share price total return was only 0.8% for the year due to the shares trading at a discount to net asset value of 6.3% against a premium of 2.5% last year. It is pleasing to see that revenue generation from the portfolio continues to increase as companies have become more profitable, whilst at the same time staying committed to cost-cutting and restructuring. As a result we are proposing to increase the dividend this year by 11%. While Asian markets posted a fourth successive year of gains, the rise was accompanied by a significant increase in volatility. The Shanghai market increased by 103% (in Renminbi terms) before the sell off in February. The consolidation lasted about three weeks before the market regained the old highs and is currently more than 46% up on the calendar year to date. Positive returns came from the Philippines (+47%), Malaysia (+39%) and Singapore (+30%) with the weakest markets being Taiwan (-6%), Thailand (-5%) and Korea (-0.2%). Asia's economies retained their vigour throughout. In particular, China's very strong pace of GDP growth of 11%, while worrying on the one hand, has equally been a key driver for the region. The mainland's insatiable appetite for commodities is slowly widening to encompass a growing demand for goods and services, underpinning intra-regional trade. The same is true for the region as a whole, where economic growth has become more broadly based. This resonating theme of rising domestic consumption is adding another much-needed dimension to the mostly export-dependent economies in Asia. This aspect of growth has been a key area of focus of your Manager for the past several years. Over the review period, asset allocation was positive as many regional markets set fresh record highs against the backdrop of healthy economic growth, rising corporate earnings, and a growing trend in mergers and acquisitions. Specifically, the portfolio's overweight to Singapore and the Philippines, and an underweight to Taiwan were the top contributors to relative performance. In contrast, our underweight to Australia and China, and an overweight to Thailand cost the fund the most. Dividend Your Board recommends the payment of a final dividend of 5.55p per Ordinary share which, if approved by shareholders at the AGM, will be paid on 31 August 2007 to Ordinary shareholders on the register on 3 August 2007. This represents an increase of 11.0% on the level paid last year and corresponds to the continuing strong revenue streams from the portfolio. Since inception in 1989, the dividend per annum has increased from a starting base of 0.5p to the present level of 5.55p which is a rise of over 1000%. Gearing The Company has continued to retain a modest level of gearing on the portfolio. At the year end £6.8 million was drawn down under the Company's revolving credit facility with AIB, representing approximately 4.9% of the Company's net assets. Outlook Although Asia appears healthy on most fronts, some wariness is merited at this stage of the cycle. Valuations have run up in several markets, while hot money flows continue to drive up share prices and point to speculative excess in markets such as China. Asset bubbles aside, though, vigilance towards external risks is also required, particularly the potential of a slowdown in the US economy, which may be exacerbated should the housing market show rapid signs of deterioration. Any of these factors could trigger a sudden reversal of global imbalances, as was seen in May last year, and more recently in February. At the corporate level, earnings results have generally exceeded expectations, as balance sheets have become healthier on the back of corporate reforms. Importantly, cashflow generation continues to increase. Encouragingly, progress has also been made in raising corporate governance standards, while surpluses are increasingly being paid out to shareholders in the form of higher dividends and share buybacks. Therefore, we expect equity markets in Asia to continue to be well supported in 2007, albeit subject to the above caveats, and will continue to maintain our strategy of investing in professionally run companies that have healthy balance sheets and are attractively valued. AGM Business As mentioned in the Interim Report, David Shearer was appointed to the Board on 1 January 2007 and is now Chairman of the Audit Committee. David is a chartered accountant and brings a wealth of experience to the Board being a director of a number of other companies and having previously been a UK executive board member of Deloitte & Touche LLP as well as a former non executive director of HBOS plc. Included within the ordinary business in the Notice of AGM is a resolution to elect David to the Board and I strongly recommend that you support this proposal. As special business at the AGM we are proposing to renew the authority to allot up to 10% of the Company's issued share capital without pre-emption rights applying and the renewal of the Company's authority to buy in shares and either hold them in treasury for future resale (at asset value or above) or cancel them. The Directors are also proposing to amend the Articles of Association to take account of recent changes as a result of the implementation of the Companies Act 2006. These changes will enable the Company to make greater use of electronic mail and websites when communicating Company information, including distributing annual reports and accounts and sending out notices of meeting. Your Board is keen to encourage the use of electronic communications but the Company currently only intends to use electronic means where shareholders have positively elected to receive communications in such manner. The Annual General Meeting of the Company will be held on Wednesday 29 August 2007 at 12.30 p.m. in London and your Board looks forward to meeting as many shareholders as possible at the AGM and over lunch afterwards. Alan Henderson Chairman 10 July 2007 Income Statement Year ended 30 April 2007 Year ended 30 April 2006 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 10,527 10,527 - 42,363 42,363 Income 4,027 - 4,027 3,345 - 3,345 Investment management fee (536) (536) (1,072) (452) (452) (904) Administrative expenses (552) 15 (537) (499) (30) (529) Exchange (losses)/gains (41) 733 692 14 (450) (436) ________ ________ ________ ________ ________ ________ Net return before finance costs and 2,898 10,739 13,637 2,408 41,431 43,839 taxation Interest payable and similar charges (189) (189) (378) (167) (167) (334) ________ ________ ________ ________ ________ ________ Return on ordinary activities before 2,709 10,550 13,259 2,241 41,264 43,505 taxation Tax on ordinary activities (772) 217 (555) (628) 186 (442) ________ ________ ________ ________ ________ ________ Return on ordinary activities after 1,937 10,767 12,704 1,613 41,450 43,063 taxation ________ ________ ________ ________ ________ ________ Return per Ordinary share (pence): 7.63 42.41 50.04 6.58 169.20 175.78 ________ ________ ________ ________ ________ ________ The total column of this statement represents the profit and loss account of the Company. A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement. All revenue and capital items are derived from continuing operations. The accompanying notes are an integral part of the financial statements. Balance Sheet As at As at 30 April 2007 30 April 2006 £'000 £'000 Non-current assets Investments 145,147 134,766 __________ __________ Current assets Debtors 870 423 Cash at bank and in hand 1,345 790 __________ __________ 2,215 1,213 __________ __________ Creditors: amounts falling due within one year Foreign currency loans (6,822) (7,496) Other creditors (1,047) (486) __________ __________ (7,869) (7,982) __________ __________ Net current liabilities (5,654) (6,769) __________ __________ Total assets less current liabilities 139,493 127,997 Provision for liabilities and charges (151) (90) __________ __________ Net assets 139,342 127,907 __________ __________ Share capital and reserves Called-up share capital 6,347 6,347 Share premium account 17,955 17,955 Special reserve 14,138 14,138 Capital redemption reserve 10,207 10,207 Capital reserve - realised 15,638 7,067 Capital reserve - unrealised 69,645 67,449 Revenue reserve 5,412 4,744 __________ __________ Equity Shareholders' funds 139,342 127,907 __________ __________ Net asset value per Ordinary share (pence): 548.87 503.83 __________ __________ Reconciliation in Movements in Shareholders' Funds For the year ended 30 April 2007 Share Capital Capital Capital Share premium Special redemption reserve- reserve- Revenue capital account reserve reserve realised unrealised reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 April 2006 6,347 17,955 14,138 10,207 7,067 67,449 4,744 127,907 Return on ordinary - - - - 8,571 2,196 1,937 12,704 activities after taxation Dividend paid - - - - - - (1,269) (1,269) _____ ________ ______ ______ ______ ______ ______ ______ Balance at 30 April 6,347 17,955 14,138 10,207 15,638 69,645 5,412 139,342 2007 _____ ________ ______ ______ ______ ______ ______ ______ For the year ended 30 April 2006 Share Capital Capital Capital Share premium Special redemption reserve- reserve- Revenue capital account reserve reserve realised unrealised reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 April 2005 5,852 9,777 14,138 10,207 7,025 26,041 4,301 77,341 (restated) Return on ordinary - - - - 42 41,408 1,613 43,063 activities after taxation Dividend paid - - - - - - (1,170) (1,170) Issue of Ordinary shares 495 8,178 - - - - - 8,673 _____ ________ ______ ______ ______ ______ ______ ______ Balance at 30 April 2006 6,347 17,955 14,138 10,207 7,067 67,449 4,744 127,907 _____ ________ ______ ______ ______ ______ ______ ______ Cash Flow Statement Year ended Year ended 30 April 2007 30 April 2006 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 1,712 1,906 Servicing of finance Bank and loan interest paid (378) (339) Taxation Net UK tax paid (316) (616) Financial investment Purchases of investments (13,066) (14,509) Sales of investments 13,813 5,982 ________ ________ Net cash inflow/(outflow) from financial investment 747 (8,527) Equity dividend paid (1,269) (1,170) ________ ________ Net cash inflow/(outflow) before financing 496 (8,746) Financing Issue of new shares - 8,673 ________ ________ Increase/(decrease) in cash 496 (73) ________ ________ Reconciliation of net cash flow to movements in net debt Increase/(decrease) in cash as above 496 (73) Exchange movements 733 (450) ________ ________ Movement in net debt in the year 1,229 (523) Opening net debt (6,706) (6,183) ________ ________ Closing net debt (5,477) (6,706) ________ ________ Notes 1. Accounting policies (a) Basis of accounting The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments, and in accordance with applicable United Kingdom Accounting Standards and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies' (December 2005)('the SORP'). They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements, and the net asset value per share figures, have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP). (b) Valuation of investments Listed investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the time frame established by the market concerned, and are initially measured at cost. Subsequent to initial recognition, investments are valued at fair value which for listed investments is deemed to be bid market prices. Gains and losses arising from changes in fair value are included as a capital item in the Income Statement and are ultimately recognised in the capital reserve - unrealised. (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 through the revenue column of the Income Statement except as follows: • expenses directly relating to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds. Such transaction costs are disclosed in accordance with the SORP. These expenses are charged to the capital column of the Income Statement. • the Company charges 50% of investment management fees and finance costs to capital column of the Income Statement, in accordance with the Board's expected long term return in the form of capital gains and income respectively from the investment portfolio of the Company. (e) 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 Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Balance Sheet date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Income Statement and are then transferred to the realised capital reserve. (h) Dividends payable Final dividends are dealt with in the period in which they are paid. 2. Dividend The Directors have today declared a final dividend of 5.55p per Ordinary share for the year ended 30 April 2007 (2006 - 5.0p). The dividend will, if approved by Shareholders at the Annual General Meeting, be payable on 31 August 2007 to Shareholders on the register on 3 August 2007 (Provisional Ex-Dividend 1 August 2007). 3. Income 2007 2006 £'000 £'000 Income from investments UK dividend income 213 111 Overseas dividends 3,671 3,091 Scrip dividends 46 70 3,930 3,272 Other income Deposit interest 31 46 Stock lending income 66 27 97 73 Total income 4,027 3,345 4. The Income Statement, Balance Sheet, Reconciliation of Movement in Shareholders' Funds and the Cash Flow Statement set out above do not represent full accounts in accordance with Section 240 of the Companies Act 1985. The financial information for the year ended 30 April 2006 has been extracted from the Annual Report and Accounts of the Company which have been filed with the Registrar of Companies and restated where required as a result of the implementation of the new Financial Reporting Standards. The auditors' report on those accounts as originally filed was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. The statutory accounts for 2007 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. 5. 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. 6. This preliminary announcement of results was approved by the Board on 10 July 2007. Aberdeen Asset Management PLC Secretaries 10 July 2007 This information is provided by RNS The company news service from the London Stock Exchange

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