Interim Results
Finsbury Life Sciences Inv Tst PLC
26 November 2004
26 November 2004
Finsbury Life Sciences Investment Trust PLC
Interim Results for the six months ended 30 September 2004
Financial Highlights 30 September 31 March % Change
2004 2004
Shareholders' Funds £28.4m £33.6m -15.5
Net asset value per share 94.4p 111.7p -15.5
Share price 81.0p 92.0p -12.0
Discount 14.2% 17.6% -
Lehman's UK and European Biotechnology
Index (Euros) 166.6 170.5 -2.3
FTSE All-Share Index (total return) 2,460.2 2,340.2 +5.1
No interim dividend is proposed.
Chairman John Sclater, commented:
• The performance of the Company's investment portfolio over the period
under review has been disappointing relative to the buoyant conditions of late
2003 and early 2004.
• News flow from the sector appears to be improving and recent drug
approvals may mark a turning point in fortune after a period of set backs,
representing a good opportunity to invest in the sector.
The following are attached:
• Chairman's Statement
• Consolidated Statement of Total Return
• Consolidated Balance Sheet
• Consolidated Cash Flow Statement
• Notes to the Interim Financial Statements
For further information please contact:
Alastair Smith, Close Finsbury Asset Management Limited 020 7426 6240
Tracey Lago, Close Finsbury Asset Management Limited 020 7426 6219
Michael Bourne, Reabourne Technology Investment Management
Limited 020 7426 6290
Jo Stonier, Quill Communications 020 7763 6976
Chairman's Statement
Performance
During the six months ended 30 September 2004 the Company's net asset value
('NAV') per share decreased from 111.7p to 94.4p, a decrease of 15.5%. This
compares with a decrease in the Lehman's UK and European Biotechnology Index of
2.3% and an increase in the FTSE All-Share Index (total return) of 5.1%.
During the six month period the share price decreased by 12% from 92.0p to 81.0p
resulting in a narrowing in the discount of the share price to net asset value
per share from 17.6% to 14.2%.
Results and Dividend
The total loss for the six months ended 30 September 2004 was 17.3p per share
(six months to 30 September 2003: return of 33.9p). This was made up of a
revenue loss of 0.5p per share (2003: loss of 1.0p) and a capital loss of 16.8p
per share (2003: return of 34.9p).
The investments making up the Company's investment portfolio typically provide
little, if any, income and accordingly no interim dividend has been declared
(2003: nil).
Review and Outlook
The performance of the Company's investment portfolio over the period under
review has been disappointing relative to the buoyant conditions of late 2003
and early 2004. All of the gains made by the Company during that period have
been lost against a background of difficult market conditions in the European
biotechnology sector. In addition, two of the companies in the investment
portfolio performed particularly badly following the failure of key products to
gain regulatory approval. Further details are contained in the Review of
Investments in the Interim Report.
Despite the more difficult market conditions, your Board continues to believe
that there are good opportunities in the European biotechnology sector relative
to the US market. News flow from the sector appears to be improving and recent
drug approvals may mark a turning point in fortune after a period of set backs,
representing a good opportunity to invest in the sector. The Company therefore
is focussed on investing in those companies, which are expected to deliver
strong returns to the long-term investor.
John Sclater
Chairman
26 November 2004
Consolidated Statement of Total Return
incorporating the revenue account for the six months ended 30 September 2004
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year ended
30 September 30 September 31 March 2004
2004 2003
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
------------ ------- ------- ------- ------- ------- ------- ------- ------- -------
(Losses)/
gains - (4,874) (4,874) - 10,726 10,726 - 14,906 14,906
on
investments
Loss on
currency
balances - (8) (8) - (36) (36) - (37) (37)
Income (note
2) 59 - 59 49 - 49 97 - 97
Investment
management
fees (note - (190) (190) - (180) (180) - (386) (386)
3)
Other (196) - (196) (341) - (341) (556) - (556)
expenses ------- ------- ------- ------- ------- ------- ------- ------- -------
------------
Net
(loss)/
profit
before
finance (137) (5,072) (5,209) (292) 10,510 10,218 (459) 14,483 14,024
costs and
taxation
Interest
payable and
similar
charges (3) - (3) - (6) (6) - (6) (6)
------------ ------- ------- ------- ------- ------- ------- ------- ------- -------
(Loss)/
profit
on ordinary
activities
before (140) (5,072) (5,212) (292) 10,504 10,212 (459) 14,477 14,018
taxation
Taxation on
ordinary
activities (2) - (2) (3) - (3) (4) - (4)
------------ ------- ------- ------- ------- ------- ------- ------- ------- -------
(Loss)/
profit
on ordinary
activities (142) (5,072) (5,214) (295) 10,504 10,209 (463) 14,477 14,014
after ------- ------- ------- ------- ------- ------- ------- ------- -------
taxation
------------
Transfer
(from)/to
reserves (142) (5,072) (5,214) (295) 10,504 10,209 (463) 14,477 14,014
------------ ------- ------- ------- ------- ------- ------- ------- ------- -------
(Loss)/
return
per Ordinary
share - (0.5)p (16.8)p (17.3)p (1.0)p 34.9p 33.9p (1.5)p 48.1p 46.6p
pence ------- ------- ------- ------- ------- ------- ------- ------- -------
(note 1)
------------
The revenue columns of this statement are the profit and loss accounts of the
Group.
Consolidated Balance Sheet
as at 30 September 2004
(Unaudited) (Unaudited) (Audited)
30 September 30 September 31 March
2004 2003
2004
£'000 £'000 £'000
-------------------- ---------- ----------- ----------
Fixed assets investments 28,388 28,501 33,748
-------------------- ---------- ----------- ----------
Current assets
Debtors 14 334 42
Cash at bank 198 1,178 289
-------------------- ---------- ----------- ----------
212 1,512 331
Creditors
Amounts falling due within
one year (197) (201) (462)
-------------------- ---------- ----------- ----------
Net current
assets/(liabilities) 15 1,311 (131)
-------------------- ---------- ----------- ----------
Net assets 28,403 29,812 33,617
-------------------- ---------- ----------- ----------
Capital and reserves
Called up share capital 7,525 7,525 7,525
Share premium - 21,679 -
Special reserve 21,679 - 21,679
Capital reserve - realised 7,042 8,476 8,079
Capital reserve -
unrealised (6,955) (7,290) (2,920)
Revenue reserve (888) (578) (746)
-------------------- ---------- ----------- ----------
Total equity shareholders'
funds 28,403 29,812 33,617
-------------------- ---------- ----------- ----------
Net asset value per
Ordinary share (note 4) 94.4p 99.0p 111.7p
-------------------- ---------- ----------- ----------
Consolidated Cash Flow Statement
for the six months ended 30 September 2004
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2004
£'000 2003 2004
£'000 £'000
--------------------- ------------- ------------ -----------
Net cash outflow from
operating activities (301) (458) (858)
--------------------- ------------- ------------ -----------
Servicing of finance
Bank overdraft and interest
paid (4) (6) (6)
--------------------- ------------- ------------ -----------
Taxation
Withholding tax recovered 2 1 1
--------------------- ------------- ------------ -----------
Financial investments
Purchases of investments (8,061) (5,567) (15,713)
Sales of investments 8,516 8,232 17,655
--------------------- ------------- ------------ -----------
Net cash inflow from
financial investments 455 2,665 1,942
--------------------- ------------- ------------ -----------
Net cash inflow before
financing 152 2,202 1,079
Financing
Drawdown of loans - (1,000) (1,000)
--------------------- ------------- ------------ -----------
Increase in cash 152 1,202 79
--------------------- ------------- ------------ -----------
Reconciliation of net cash flow to
movement in net funds
Increase in cash as above 152 1,202 79
Cashflow from drawdown of
loan - 1,000 1,000
Exchange movements (8) (36) (37)
--------------------- ------------- ------------ -----------
Movement in net funds 144 2,166 1,042
Net funds/(debt) at
beginning of period 54 (988) (988)
--------------------- ------------- ------------ -----------
Net funds at end of period 198 1,178 54
--------------------- ------------- ------------ -----------
Notes to the Interim Financial Statements
1. (Loss)/return per Ordinary share
Revenue loss per Ordinary share is calculated by dividing the net revenue loss
of £142,000 (six months ended 30 September 2003: loss £295,000; year ended 31
March 2004: loss £463,000) by 30,100,000 being the number of Ordinary shares in
issue throughout the period.
Capital return per Ordinary share is calculated by dividing the net capital loss
available for Ordinary shareholders of £5,072,000 (six months ended 30 September
2003: gain £10,504,000; year ended 31 March 2004: gain £14,477,000) by
30,100,000 Ordinary shares as above.
2. Income
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year ended
30 September 30 September 31 March
2004 2003 2004
£'000 £'000 £'000
Investment income 47 45 42
Bank interest 5 4 55
Underwriting income 7 - -
--------------------- ----------- ---------- -----------
Total 59 49 97
--------------------- ----------- ---------- -----------
3. Investment Management Fees
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year ended
30 September 30 September 31 March
2004 2003 2004
£'000 £'000 £'000
Periodic fee 163 150 329
Performance fee - - -
Irrecoverable VAT thereon 27 30 57
--------------------- ----------- ---------- -----------
Total 190 180 386
--------------------- ----------- ---------- -----------
4. Net Asset Value per Ordinary share
--------------------- ----------- ---------- -----------
(Unaudited) (Unaudited) (Audited)
30 September 30 September 31 March
2004 2003 2004
--------------------- ----------- ---------- -----------
Net asset value per Ordinary share 94.4p 99.0p 111.7p
--------------------- ----------- ---------- -----------
The net asset value per Ordinary share is based on the assets attributable to
ordinary shareholders of £28,403,000 (30 September 2003: £29,812,000; 31 March
2004: £33,617,000) and on 30,100,000 Ordinary shares (30 September 2003:
30,100,000; 31 March 2004: 30,100,000) being the number of Ordinary shares in
issue at the end of the period.
5. Comparative Information
The figures and financial information for the year ended 31 March 2004 are an
extract from the latest published financial statements and do not constitute
statutory financial statements for that year. Those financial statements have
been 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 Report has been
neither audited nor reviewed by the Company's auditors. The Interim Report has
been prepared using accounting policies that are consistent with those adopted
in the statutory accounts for the year ended 31 March 2004.
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 1 day ago Mattioli Woods
- 1 day ago Morgan Advanced Materials
- 1 day ago Capita
- 1 day ago Judges Scientific
- 1 day ago Me Group International