Interim Results

Finsbury Technology Trust PLC 21 July 2004 For immediate release 21 July 2004 FINSBURY TECHNOLOGY TRUST PLC Preliminary results for the six months ended 31 May 2004 Finsbury Technology Trust PLC today announces preliminary results for the six months ended 31 May 2004. 31 May 2004 30 November % Change 2003 Shareholders' Funds Â£63.7m Â£68.2m -6.6 Net Asset Value per share 230.5p 246.8p -6.6 Share price 186.5p 210.0p -11.2 Discount 19.1% 14.9% - MSCI World Index (sterling adjusted without dividends reinvested) 1,365 1,362 +0.2 The Company has not declared an interim dividend (2003: nil). For and on behalf of Close Finsbury Asset Management Limited - Company Secretary 21 July 2004 - ENDS - The following are attached: * Chairman's Statement * Cash Flow Statement * Statement of Total Return * Notes to the interim financial statements * Balance Sheet For further information please contact: David Quysner, Chairman 020 7534 1500 Alastair Smith, Close Finsbury Asset Management Ltd 020 7426 6240 Tracey Lago, Close Finsbury Asset Management Ltd 020 7246 6219 Michael Bourne, Reabourne Technology Investment Management Ltd 020 7422 7801 Jo Stonier, Quill Communications 020 7763 6970 Chairman's Statement I became Chairman of the Board of this Company on 27 April 2004 having succeeded Bryan Lenygon who had chaired the Board since the launch of the Company in 1995. On behalf of my colleagues on the Board I would like to thank him for the significant contribution that he has made to the success of this Company. Performance During the six months ended 31 May 2004 the Company's net asset value per share (NAV) fell from 246.8p to 230.5p, a decrease of 6.6%. This compares with an increase of 0.2% in the MSCI World Index (sterling adjusted without dividends reinvested), which is the Company's benchmark index. This underperformance compared to the benchmark index is regrettable, although the technology sector as a whole underperformed the MSCI World Index. After a good start to the period the smaller capitalisation stocks in the investment portfolio performed poorly following the Madrid bombing in January 2004 and the market as a whole was affected by continued concern over the future movement in oil prices. Performance was also affected by profit taking in the market on some of our micro capitalisation stocks, which had performed particularly strongly over the course of 2003. These positions have not been sold as these companies continue to deliver good results and in the opinion of the Investment Adviser the current share prices do not reflect their potential. A further contributor to underperformance was the effect of the movement of the US dollar to Sterling and Euro exchange rates over the period. In addition, the stock picking approach of the Investment Adviser led to a higher weighting in semi-conductor stocks during the period, which performed poorly and only a small exposure to large capitalisation Internet stocks, which performed strongly. The small exposure to Internet stocks reflects valuation concern over this area of the market. The Company's share price fell from 210.0p to 186.5p, a fall of 11.2%. This was in response to the fall in NAV but there was also a widening of the share price discount, reflecting poor sentiment towards technology investment trusts as a whole over much of the period. Results and Dividend The result for the six months ended 31 May 2004 was a loss of 16.3p per share (2003: return of 12.9p per share). This was made up of a revenue deficit of 2.0p per share (2003: deficit of 1.4p per share) and a capital loss of 14.3p per share (2003: return of 14.3p per share). The investments making up the Company's investment portfolio typically provide a very low yield and accordingly no dividend is recommended in respect of the six months ended 31 May 2004. Outlook The technology sector enjoyed a return to some better times in 2003 and despite a difficult six months your Board firmly believes that in the longer term the outlook for the technology sector remains encouraging. In particular many of the technology promises that excited investors during the boom years are nearing fruition. Various companies within the portfolio have made significant progress and there are some interesting new products coming to the market in the near future. Your Board continues to believe that there will be significant growth in the sector in the years ahead and that the long-term investor in this sector will be well rewarded. David Quysner, Chairman 21 July 2004 Statement of Total Return Incorporating the revenue account for the six months ended 31 May 2004 (unaudited) (unaudited) (audited) Six months Six months Year ended ended ended 30 November 31 May 2004 31 May 2003 2003 Revenue Capital Total Revenue Capital Total Revenue Capital Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 ----------- ------- ------- ------- ------- ------ ------- ------- ------- ------- (Losses)/ gains - (3,869) (3,869) - 4,011 4,011 - 20,940 20,940 on investments Exchange losses on currency balances - (81) (81) - (69) (69) - (204) (204) Income (note 70 - 70 80 - 80 273 - 273 2) Investment management fees (note (370) - (370) (249) - (249) (627) (1,583) (2,210) 3) Other (226) - (226) (192) - (192) (377) - (377) expenses ------- ------- ------- ------- ------ ------- ------- ------- ------- ----------- Net (loss)/ (526) (3,950) (4,476) (361) 3,942 3,581 (731) 19,153 18,422 return before finance costs and taxation Interest payable and similar charges (27) - (27) (13) - (13) (31) - (31) ----------- ------- ------- ------- ------- ------ ------- ------- ------- ------- (Loss)/ return on ordinary activities before (553) (3,950) (4,503) (374) 3,942 3,568 (762) 19,153 18,391 taxation Taxation charge on ordinary activities (5) - (5) (3) - (3) (22) - (22) ----------- ------- ------- ------- ------- ------ ------- ------- ------- ------- Transfer (from)/to (558) (3,950) (4,508) (377) 3,942 3,565 (784) 19,153 18,369 reserves ----------- ------- ------- ------- ------- ------ ------- ------- ------- ------- (Loss)/ return per Ordinary (2.0p) (14.3p) (16.3p) (1.4)p 14.3p 12.9p (2.8p) 69.3p 66.5p share - ------- ------- ------- ------- ------ ------- ------- ------- ------- pence (note 4) ----------- Balance Sheet as at 31 May 2004 (unaudited) (unaudited) (audited) 31 May 2004 31 May 2003 30 November 2003 Â£'000 Â£'000 Â£'000 -------------------- ----------- ------------ ------------- Fixed asset investments 62,832 53,239 71,188 -------------------- ----------- ------------ ------------- Current assets Debtors 69 346 285 Cash at bank 1,494 141 24 -------------------- ----------- ------------ ------------- 1,563 487 309 Creditors Amounts falling due within one year (746) (373) (3,340) -------------------- ----------- ------------ ------------- Net current assets/(liabilities) 817 114 (3,031) -------------------- ----------- ------------ ------------- Net assets 63,649 53,353 68,157 -------------------- ----------- ------------ ------------- Capital and reserves Called up share capital 6,904 6,904 6,904 Share premium account 23,488 23,488 23,488 Capital reserve - realised 45,779 57,756 45,868 Capital reserves - unrealised (5,312) (28,550) (1,451) Revenue reserve (7,210) (6,245) (6,652) -------------------- ----------- ------------ ------------- Shareholders' funds 63,649 53,353 68,157 -------------------- ----------- ------------ ------------- Net asset value per Ordinary share 230.5p 193.2p 246.8p -------------------- ----------- ------------ ------------- Cash Flow Statement for the half year ended 31 May 2004 (unaudited) (unaudited) (audited) Six months Six months Year ended ended ended 31 May 2004 31 May 2003 30 November 2003 Â£'000 Â£'000 Â£'000 --------------------- ------------- ------------- ------------- Net cash outflow from operating activities (2,164) (421) (741) Servicing of finance Bank overdraft and loan interest paid (28) (13) (31) Taxation Tax recovered 10 - 1 Financial investments Purchases of investments (15,767) (11,381) (28,860) Sales of investments 20,640 11,321 28,016 --------------------- ------------- ------------- ------------- Net cash inflow/(outflow) from financial investment 4,873 (60) (844) Financial (Repayment)/drawdown of loans (1,100) - 1,100 --------------------- ------------- ------------- ------------- Increase/(decrease) in cash during the period 1,591 (494) (515) --------------------- ------------- ------------- ------------- Notes to the interim accounts 1. Revenue Account The revenue column of the Statement of Total Return represents the revenue account of the Company. 2 Income (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended 31 May ended 31 May 30 November 2004 2003 003 Â£'000 Â£'000 Â£'000 Income from investments 65 76 257 Interest receivable and other 5 4 16 income ----------- ----------- ------------ ----------------- Total 70 80 273 ----------------- ----------- ----------- ------------ 3 Investment Management Fees (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended 31 May 31 May ended 2004 2003 30 November 2003 Â£'000 Â£'000 Â£'000 Periodic fee 350 241 589 Performance fee - - 1,488 Irrecoverable VAT thereon 20 8 133 ----------------- ----------- ----------- ------------ Total 370 249 2,210 ----------------- ----------- ----------- ------------ 4 Loss per Ordinary share The revenue loss per Ordinary share is calculated by dividing the net revenue loss of Â£558,000 (six months ended 31 May 2003: Â£377,000; year ended 30 November 2003: Â£784,000) by 27,615,312 (six months ended 31 May 2003: 27,615,312; year ended 30 November 2003: 27,615,312) being the number of Ordinary shares in issue during the period. The capital loss per Ordinary share is calculated by dividing the net capital loss of Â£3,950,000 (six months ended 31 May 2003: return of Â£3,942,000; year ended 30 November 2003: return of Â£19,153,000) by the number of Ordinary shares, as above. Notes to the interim accounts (continued) 5. Comparative information The figures and financial information for the year ended 30 November 2003 are an extract from the latest published financial statements and do not constitute statutory financial statements for that year. Those financial statements were delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 237(2) and 237(3) of the Companies Act 1985. The interim financial statements have neither been audited nor reviewed by the Company's auditors. They have been prepared using the using the same accounting policies as those adopted in the financial statements for the year ended 30 November 2003. Close Finsbury Asset Management Ltd - Company Secretary 21 July 2004 This information is provided by RNS The company news service from the London Stock Exchange

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