Year End Results

Piccadilly Growth Trust Plc 23 June 2000 PICCADILLY GROWTH TRUST PLC PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS The Directors announce the unaudited statement of results for the year ended 30 April 2000 as follows: CONSOLIDATED STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT*) FOR THE YEAR ENDED 30 APRIL 2000 **Restated 1 May 1999 17 October 1998 to 30 April 2000 to 30 April 1999 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 3,156 3,156 - 1,840 1,840 Exchange loss on Capital - (8) (8) - (16) (16) items Income dividends and interest 198 - 198 95 - 95 subsidiary's dealing profit 85 - 85 - - - Investment management fee - (156) (156) - (75) (75) Other expenses (72) - (72) (47) - (47) exceptional costs Net return on ordinary activities before finance ----- ----- ----- ----- ----- ----- costs and taxation 211 2,992 3,203 48 1,749 1,797 Interest payable and similar charges (1) (82) (83) - (11) (11) ----- ----- ----- ----- ----- ----- Return on ordinary activities before tax 210 2,910 3,120 44 1,738 1,786 Tax on ordinary activities (2) - (2) (4) 1 (3) ----- ----- ----- ----- ----- ----- Return on ordinary activities after tax for the financial period 208 2,910 3,118 44 1,739 1,783 Dividends in respect of equity shares (157) - (157) (74) - (74) ----- ----- ----- ----- ----- ----- Transfer to/(from) 51 2,910 2,961 (30) 1,739 1,709 reserves ===== ===== ===== ===== ===== ===== Return per 2.52p 35.30p 37.82p 0.54p 21.09p 21.63p Ordinary Share ===== ===== ===== ===== ===== ===== * The revenue column of this statement is the revenue account of the Company. ** The comparative results have been restated to reflect the adoption of Financial Reporting Standard No 16: Current Taxation, UK dividend income is presented excluding its attributable tax credit of £12,000 (1999: £6,000). Previously, both UK and French dividend income was presented including attributable tax credits which were then also included within the charge for taxation. This change in presentation has no effect on the revenue return per ordinary share on ordinary activities after tax. The comparatives have been restated to reflect this change. No operation was acquired or discontinued in the year. The investment objective, as set out in the Prospectus, is to seek long-term capital growth from a pan-European investment portfolio. CONSOLIDATED BALANCE SHEET: as at 30 April 2000 As at As at 30 April 2000 30 April 1999 £'000 £'000 Fixed assets Investments 14,361 10,558 Current assets Debtors 194 44 Cash at bank 29 46 ------ ----- 223 90 Creditors: Amounts falling due within one year 2,176 1,201 ------ ----- Net current (liabilities)/assets (1,953) (1,111) ------ ----- Net Assets 12,408 9,447 ====== ===== Capital and reserves Called up share capital 82 82 Share premium capital 2,827 2,827 Capital redemption reserve 2 2 Capital reserve - realised 5,241 4,674 - unrealised 4,136 1,793 Revenue reserve 120 69 ------ ----- Equity shareholders funds 12,408 9,447 ------ ----- Net asset value per ordinary share 150.51p 114.59p ====== ====== CONSOLIDATED STATEMENT OF CASH FLOWS 1 May 1999 17 October 1998 to 30 April 2000 to 30 April 1999 £'000 £'000 Operating activities Investment income received 256 82 Deposit interest received 3 20 Investment Management fees paid (121) (65) Company secretarial fees paid (10) (5) Other cash payments (57) (185) ------ ------ Net cash inflow/(outflow) from 71 (153) operating activities Servicing of finance Loan interest paid (80) (8) ------ ------ Net cash outflow from servicing (80) (8) of finance ------ ------ Tax paid (13) (2) ------ ------ Capital expenditure and financial investment Purchase of listed investments (3,700) (9,614) Sale of listed investments 2,929 5,233 Realised exchange losses on - - settlement ------ ------ Net cash outflow inflow from (771) (4,381) capital expenditure and ------ ------ financial investment Equity dividends paid (148) - ------ ------ Financing Amounts drawn under revolving 950 1,050 credit facility ------ ------ Net cash inflow from financing 950 1,050 ------ ------ Increase/(Decrease) in cash flow 9 (3,494) ====== ====== The above financial information does not constitute statutory financial statements as defined in Section 240 of the Companies Act 1985. The comparative financial information is based on the statutory financial statements for the period ended 30 April 1999. Those financial statements, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. Statutory financial statements for the year ended 30 April 2000 will be delivered to the Registrar. The financial statements have been prepared applying accounting policies and standards adopted at the previous year end, with the exception of income which has been calculated with the recently issued Financial Reporting Standard No.16: Current Taxation. The comparatives have been restated to reflect this change. EARNINGS and DIVIDEND The Directors recommend the payment of a final dividend in respect of the year ended 30 April 2000 of 1.0p net per ordinary 1p share, payable on 31 August 2000 to all those on the Register of Members as at 4 August 2000. The financial statements cover the year ended 30 April 2000. The net return after taxation during the year amounted to £208,000 (period to 30 April 1999 £44,000). YEAR 2000 Prior to the end of 1999 the Directors took steps to address the Year 2000 problem by seeking assurances from advisers and significant suppliers, regarding their strategies to deal with the problem. The Directors are not aware of any problems having arisen from Year 2000 issues, or any costs having been borne by the Company in this respect. CHAIRMAN'S COMMENTS Our first full year as a quoted investment trust has been very successful. The net asset value rose by 31.3%, beating the benchmark FT/S&P Europe (sterling based) Index which increased by 8.4%. We recommend a final dividend of 1.0p net per ordinary share, giving total dividends of 1.9p net for the year, an increase over that indicated in my last report. During the past six months we have further increased our borrowings to £2 million. One of the key advantages of Investment Trusts over Unit Trusts is their ability to borrow, which in rising markets can be of great benefit to shareholders. We set up a trading subsidiary, Piccadilly Growth Trading Limited, early in the year and this has been successfully used by our investment manager to create additional revenue for the Company. This is one of the reasons for the increase in dividend and build up of revenue reserves. The publication of our price has been moved from the Times to the Financial Times, where the price is accompanied by an estimate of the net asset value. The directors felt this was an improvement for shareholders. We are also looking at publishing our asset value weekly rather than monthly because this would improve investor confidence when considering a purchase of shares. We have continued our search for other investment companies who might find it beneficial to join us. Currently we are in informal discussions with one such company, which may lead to our making an offer in the near future. Half way through last year I undertook an investment advisory role with J O Hambro, our Investment Manager. This means I am no longer considered to be wholly independent and, as Christopher Mills is also non-independent, we only have one independent director on the board. This situation is unsatisfactory and should be resolved over the next half year. The Annual General meeting contains resolutions that will allow the directors to both issue new shares and to buy in shares. If passed, this would give the board the ability to partially control the discount between the share price and asset value by buying stock in on a wide discount and issuing on a premium. The board wishes to prevent undue volatility in the share price and to ensure that the price moves in conjunction with the asset value. I hope shareholders will support these measures which, if used, will be to their benefit. Stockmarkets have been buoyant over the last year but are currently undergoing a period of volatility with large movements in both indices and individual stock prices on a daily basis. This seems likely to continue in the short term before the upward trend resumes and we are encouraged by the way the portfolio has performed both in the rise last year and through the current volatility. The pan-European mandate of the Company has served us well so far and is becoming even more relevant with most brokers now providing research on this basis and with the possible merger of the London and Frankfurt Stock Exchanges. We therefore look to the future with confidence. Peter Metcalfe Chairman 22 June 2000 Copies of the Report will be sent to members in July and will be available to members of the public from the Registered Office at 23 Cathedral Yard, Exeter, Devon, EX1 1HB.

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