Final Results

Aurora Investment Trust PLC 26 April 2002 AURORA INVESTMENT TRUST plc Preliminary Announcement of Annual Results Year ended 28 February 2002 CHAIRMAN'S STATEMENT The past year has, for the second year in succession, provided a hostile environment for investors. Although the UK economy continued to experience further growth during the year as a whole, investor sentiment suffered particularly from the horrific event which took place in America on 11 September. The apparent sequestration of Railtrack's assets by the Government and the sudden demise of Enron further affected sentiment towards your Company's year end. Against this background the Group's net assets decreased during the year to end February 2001 from £27.165 million to £20.963 million. As a result, the Net Asset Value (NAV) per share fell from 179.81p to 138.76p. This reduction of 23% compares with a fall of 14% in your Company's benchmark, the FTSE All-Share Index. The decline in NAV was exacerbated by an even greater percentage fall in the share price, which declined from 175p to 120p. The share price discount to underlying NAV started the year at a relatively low level but increased as the year progressed. At this stage your Board considers that this discount is of a temporary nature. However, we are again seeking to renew the power to repurchase shares, which will be used if, in our view, the discount becomes excessive and of a more permanent nature. The Group has maintained a substantial level of gearing throughout the year. Part of your Company's borrowings are denominated in euros, which continue to be matched by investments in Republic of Ireland companies. Your Board continues to support the Managers' fundamentally positive outlook and strategy. However, it will keep the total level of borrowing under continuing review in the light of ever changing prospects. Revenue and Dividend The Company's post-tax revenue for the year was £401,000, compared to the previous year's abnormal level of £593,000. This revenue enables the Board to recommend a dividend payable by the Company for the year of 2.61p, representing an increase of 2.0%, in line with inflation, over last year's basic payment. If approved at the AGM, the dividend will be paid to shareholders on the Register at 10 May 2002. Due to losses incurred in the trading subsidiary there has been a reduction, after providing for the dividend, of £376,000 in Group revenue reserves, which now stand at £197,000, equivalent to 1.3p per share. Performance Bonus As reported previously, the Board consulted a wide range of shareholders concerning its proposal to remove the cap on the Manager's potential performance bonus and to substitute a scheme whereby any excess over the cap will be granted in the form of shares in the Company, to be held for a minimum of five years. Since universal approval was received, the Board has approved this scheme. Review of the Year The UK stockmarket rallied soon after the start of the year until the end of June. Thereafter it fell gradually away before collapsing after the tragic events of 11 September. A sharp rally commenced in late September, following successive rapid reductions in interest rates, but petered out in December. Since then the market has traded in a narrow range. In brief, old economy stocks of a defensive nature, such as construction, food and tobacco, but not including rail/ bus operators, due to Railtrack having been placed in administration, have fared better than growth stocks in general and technology in particular. Prospects In recent months there has been growing evidence of a rebound in the US economy. Moreover in both the UK and Europe some of the leading indicators have turned upwards with some beneficial effects on the level of the UK stockmarket. Long gilt yields have risen sharply and investor sentiment has started to move away from stocks of a defensive nature towards those of a more cyclical nature. Perhaps surprisingly even the manufacturing sector is now seeing an upturn in orders. Although there are some signs of excess capacity in areas such as telecommunications, the UK economy appears generally sound. The recent surge in the price of oil does not appear to have affected the outlook for inflation. The portfolio remains firmly committed to companies with good prospects of increasing their earnings. As a group, these are more favourably valued than at any time during the past two years. Despite recent difficulties exacerbated by major, unpredictable events, your Manager has still provided shareholders with long-term out-performance. The Company has out-performed its benchmark since launch by 26.84%. Your Company's last financial year coincided with a number of exceptional and unpredictable events. Barring a repeat of such events, I am confident that when I next report to shareholders it will be to confirm a resumption of further out-performance. AGM The Annual General Meeting will take place at 4pm on Wednesday 12 June 2002 at Crusader House, 145-157 St John's Street London EC1 4RU. All shareholders will be welcome. ROGER ADAMS 26 April 2002 CONSOLIDATED STATEMENT OF TOTAL RETURN FOR THE YEAR ENDED 28 FEBRUARY 2002 Year ended 28 February 2002 Year ended 28 February 2001 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) on investments - (5,537) (5,537) - (5,158) (5,158) Realised gains/(losses) of (395) - (395) (54) - (54) trading subsidiary Income 852 - 852 1,123 - 1,123 Investment management fee (124) (124) (248) (155) (155) (310) Other expenses (150) - (150) (160) - (160) Return before finance costs and 183 (5,661) (5,478) 754 (5,313) (4,559) taxation Interest payable and similar (165) (165) (330) (148) (148) (296) charges Return before taxation 18 (5,826) (5,808) 606 (5,461) (4,855) Taxation - - - (37) 28 (9) Return on ordinary activities 18 (5,826) (5,808) 569 (5,433) (4,864) after taxation Ordinary dividends payable (394) - (394) (438) - (438) Transfer to reserves (376) (5,826) (6,202) 131 (5,433) (5,302) Return per ordinary share 0.12p (38.56p) (38.44p) 3.76p (35.96) (32.20p) The revenue column of this statement is the consolidated profit and loss account of the Group, comprising Aurora Investment Trust plc and AIT Trading Limited. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period. CONSOLIDATED BALANCE SHEET AT 28 FEBRUARY 2002 2002 2001 £'000 £'000 FIXED ASSETS Investments at market value 25,752 33,661 CURRENT ASSETS Sales for future settlement - 52 Other debtors 81 105 Taxation recoverable 21 12 Total debtors 102 169 Cash at bank and in hand 119 465 221 634 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR: Bank overdraft 4,508 6,561 Other creditors 108 131 Dividends payable 394 438 5,010 7,130 NET CURRENT LIABILITIES (4,789) (6,496) TOTAL ASSETS LESS CURRENT LIABILITIES 20,963 27,165 CAPITAL AND RESERVES Called up share capital 3,777 3,777 Share premium account 10,997 10,997 Realised capital reserve 5,108 8,708 Unrealised capital reserve 884 3,110 Revenue reserve 197 573 EQUITY SHAREHOLDERS' FUNDS 20,963 27,165 Net assets per ordinary share 138.76p 179.81p COMPANY BALANCE SHEET AT 28 FEBRUARY 2002 2002 2001 £'000 £'000 FIXED ASSETS Investments at market value 25,752 33,661 Investments in subsidiary 54 - 25,806 33,661 CURRENT ASSETS Sales for future settlement - 52 Other debtors 81 105 Taxation recoverable 21 12 Total debtors 102 169 Cash at bank and in hand 65 322 167 491 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR: Bank overdraft 4,508 6,561 Other creditors 108 131 Dividends payable 394 438 5,010 7,130 NET CURRENT LIABILITIES (4,843) (6,639) TOTAL NET ASSETS 20,963 27,022 CAPITAL AND RESERVES Called up share capital 3,777 3,777 Share premium account 10,997 10,997 Realised capital reserves 5,108 8,708 Unrealised capital reserve 644 3,110 Revenue reserve 437 430 EQUITY SHAREHOLDERS' FUNDS 20,963 27,022 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2001 2002 2001 £'000 £'000 NET CASH INFLOW FROM OPERATING ACTIVITIES 39 117 SERVICING OF FINANCE Interest paid (330) (240) TAXATION Tax recovered 12 24 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Payments to acquire fixed asset investments (3,130) (14,893) Receipts on disposal of fixed asset investments 5,418 11,508 NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES 2,288 (3,385) EQUITY DIVIDENDS PAID (438) (379) NET CASH OUTFLOW BEFORE FINANCING 1,571 (3,863) INCREASE/(DECREASE) IN CASH 1,571 (3,863) Notes: The revenue column of the Statement of Total Return is the consolidated profit and loss account of the Group, comprising Aurora Investment Trust plc and AIT Trading Limited. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period. There were no extraordinary items. Returns and net asset values per ordinary share are based on 15,107,250 ordinary shares in issue. The directors recommend an ordinary dividend of 2.61p net per share absorbing £394,299. If approved by the Annual General Meeting, this dividend will be paid on 21 June 2001 to shareholders on the register at 10 May 2001. The financial information set out above does not constitute the Company and Group's statutory accounts for the year ended 28 February 2002 but is derived from those accounts. Statutory accounts for the year ended 28 February 2002 are to be delivered to the Registrar of Companies following the Annual General Meeting. The above results for the year ended 28 February 2002 are unaudited. Those for the year ended 28 February 2001 are an abridged version of the Group's full accounts, which received an unqualified audit report, not containing statements under section 237(2) or 237(3) of the Companies Act 1985, and which have been filed with the Registrar of Companies. Company Secretary and Registered Office: Cavendish Administration Limited Crusader House, 145-157 St. John Street London EC1V 4RU This information is provided by RNS The company news service from the London Stock Exchange

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