Interim Results - Amendment

Throgmorton Trust PLC 5 July 2001 The issuer advises that the following replaces the interim results announcement released today at 15.23 under RNS No. 4441G. The record date stated in note 5 of that announcement should have read 13 July 2001 rather than 31 July 2001. All the other details remain unchanged, the full text of the interim announcement including the amendment, is set out below. THE THROGMORTON TRUST PLC INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 31 MAY 2001 KEY POINTS * Portfolio Outperformed SmallCap and All-Share Indices * Net Asset Value per Ordinary Share at 31 May 2001, 120.0p * Interim Dividend 0.5p (2000 - 0.5p) NET ASSET VALUE 30.11.00 31.05.01 Change The Throgmorton Trust PLC 114.28p 120.03p +5.0% FTSE SmallCap (ex IC) 3,157.70 3,081.70 -2.4% FTSE All-Share 2,945.06 2,811.22 -4.5% THE CHAIRMAN, LORD STEWARTBY, COMMENTED: Since the new objective for the Trust, dispensing with an income requirement, was adopted last year, the portfolio has been repositioned in order to enable the managers to concentrate on growth. The new approach to sector and stock selection is explained in the Investment Managers' Report which follows, and it is gratifying to record that during the six months to 31 May 2001 the Trust comfortably outperformed its benchmark in a period of highly unsettled economic and market conditions. At 31 May 2001 the net asset value of the Trust was 120.0p per share, compared with 114.3p at 30 November 2000, an increase of 5.0 per cent over the six months. This compares with decreases in the FTSE SmallCap (excluding Investment Companies) Index of 2.4 per cent and in the FTSE All-Share Index (excluding Investment Companies) of 4.5 per cent over the same period. The directors have declared an interim dividend of 0.5p per share, the same as last year. As predicted, income for the six months is substantially lower than during the equivalent period last year, largely as a result of the replacement of a number of higher-yielding investments by growth stocks with a lower yield. Against the background of a slowing world economy the United Kingdom is relatively well placed, although planned increases in public expenditure ahead of the projected rate of economic growth could lead to some strain on resources if consumer expenditure remains as buoyant as it has been. Nevertheless, the small company sector looks healthy in the domestic context and, being relatively less exposed to international weakness, continues to offer interesting opportunities. MANAGER'S REPORT In the six months to 31 May 2001 we saw turbulent stock market conditions. Poor news from technology companies around the world and the slow down in the US economy led to extreme volatility. This left the UK smaller companies sector vulnerable to international economic and stock market themes. Our strategy, which worked well over the period, was to maintain the discipline of a well structured portfolio diversified by market capitalisation, industry sectors and number of companies. We concentrated on areas of the economy that were trading well with good prospects and avoided poor trading areas with deteriorating prospects. Investment was focused on companies with strong management where earnings were visible and valuations easily recognisable such as pharmaceutical companies Bioglan and Intercare, and support service stocks Interserve, Amec, and Connaught. Evaluation of risk became key, profit warnings were typical of the period due to slowing economic growth. We suffered our fair share of profit warnings but concentrated on selling stocks in areas of weak trading and high valuations. We remained underweight in the technology areas where high valuations and poor news resulted in very weakshare price performance. Manufacturing companies were also under pressure due to the strength of sterling and weakening export markets, hence we reduced our holding in Volex, and sold Fairey, Spirent, Enodis and Mayflower. The media sector also looked vulnerable to share price falls. High valuations and weakening advertising markets led us to reduce holdings in Scottish Radio and sell GWR. Corporate activity was again noticeable over the period with the Trust benefiting from takeovers in Community Hospitals, Cannons, British Regional Airways, Frogmore Estates, Peel Hunt and Bryant. We believed that the UK was relatively well placed to withstand a global economic slowdown for several reasons. Firstly, fairly full employment, a strong housing market, decreases in taxation, falls in interest rates and increases in wages meant consumer confidence was high. Thus, house building stocks such as Crest Nicholson, leisure stocks such as pub retailing groups SFI and Luminar and health and fitness club group, Cannons, rose in price. Secondly, the government is heavily committed to increased spending on transport infrastructure following the rail and petrol crises, this resulted in share price rises for companies such as Mowlem and Jarvis. Further spending commitments in health, education and government restructuring should help outsourcing and Private Finance Initiative companies. In addition, inflation remained below the Monetary Policy Committee's target of 2.5% leaving scope for interest rates to be cut, especially with the risk of the economy slowing due to international economic uncertainty. We are optimistic about returns from UK smaller company investments. The international economic outlook, although poor, does not appear to be deteriorating further with poor news still confined to technology and capital equipment spending areas. Aggressive interest rate cuts in the U.S. by the Federal Reserve have had the desired stabilising effect and with that backdrop we feel the fundamental strengths of the UK smaller companies sector can be recognised. We have ridden the tricky financial markets over the last year and the portfolio is well placed to benefit from investment in growth companies with strong management as we find opportunities in these volatile markets. We believe the success of the UK economy will continue and provide a positive background for smaller companies. High growth companies are normally focused niche companies, which tend to be smaller companies. The entrepreneurial attitude in forward-looking industries should allow these companies to grow faster with more opportunities. The high value added areas are aerospace, electronics, software and information technology, biotechnology and healthcare, media, outsourcing, intellectual property rights and finance, areas which we believe the UK excels in globally. Domestic related industries should continue to benefit from government spending, strong consumer spending and economic growth. The Trust should be well placed to produce good returns over the shorter and longer term. Framlington Investment Management Limited 5 July 2001 Contacts: Paul Branigan - 020 7330 6544 Roger Whiteoak - 020 7330 6551 The Throgmorton Trust PLC Interim Revenue Statement Six months to Six months Full year 31 May 2001 To 31 May 2000 to 30 Nov 2000 £000s £000s £000s (unaudited) (unaudited) Income from fixed asset investments UK dividend income 3,098 4,340 8,045 Unfranked income 379 433 849 3,477 4,773 8,894 Other income Dividends from subsidiary 8 - 10 undertakings Interest receivable 264 75 302 Sundry income 40 56 93 312 131 405 Total income 3,789 4,904 9,299 Management fee (825) (880) (1,734) Administration expenses (160) (142) (309) Interest payable (1,308) (1,311) (2,616) Net revenue from ordinary 1,496 2,571 4,640 activities before taxation Tax on net revenue from (96) (78) (166) ordinary activities Net revenue from ordinary 1,400 2,493 4,474 activities after taxation Dividends 5 Ordinary (1,192) (1,296) (1,294) shares - Interim 0.5p (0.5p) 4 - Final 18 - (2,472) - (1.0p) (1,174) (1,296) (3,766) Net revenue retained 226 1,197 708 Revenue reserve brought 4,302 3,594 3,594 forward Revenue reserve carried 4,528 4,791 4,302 forward Earnings per share - basic 0.58p 0.92p 1.70p Earnings per share - 0.64p 0.96p 1.79p fully diluted The Throgmorton Trust PLC Summarised Balance Sheet 31 May 2001 31 May 2000 30 Nov 2000 £000s £000s £000s (unaudited) (unaudited) Fixed asset investments Portfolio investments 313,288 333,181 324,318 Subsidiary undertakings 3,285 3,577 3,285 316,573 336,758 327,603 Current assets Debtors 2,428 3,384 589 Cash at bank 19,727 3,038 9,130 22,155 6,422 9,719 4 Creditors - due within 1 (7,457) (6,368) (8,478) year Total assets less current 331,271 336,812 328,844 liabilities Creditors - due after 1 year: Debenture stock (19,119) (19,119) (19,119) Convertible loan (11,008) (11,008) (11,008) Loan from group company (15,000) (15,000) (15,000) (45,127) (45,127) (45,127) 286,144 291,685 283,717 Capital and reserves Share capital 11,919 12,980 12,414 Share premium 35,267 35,267 35,267 4 Revenue reserves 4,528 4,791 4,302 Other reserves 234,430 238,647 231,734 Total shareholders' funds 286,144 291,685 283,717 6 Net Asset Value per 120.03p 112.36p 114.28p ordinary funds Number of ordinary shares in issue 238,388,592 259,603,592 248,273,592 The Throgmorton Trust PLC Statement of Total Recognised Gains and Losses Six Months to 31 May 2001 Revenue Capital Total £000s £000s £000s (unaudited) (unaudited) (unaudited) Realised gains and - 17,303 17,303 losses Unrealised gains and - (3,513) (3,513) losses Income 3,789 - 3,789 Investment management (825) (825) (1,650) fee Other expenses (160) - (160) Net return before 2,804 12,965 15,769 finance costs and taxation Interest payable and (1,308) (1,212) (2,520) similar charges Return on ordinary 1,496 11,753 13,249 activities before taxation Tax on ordinary (96) 96 - activities Return on ordinary 1,400 11,849 13,249 activities after taxation attributable to equity shareholders Dividends in respect (1,174) - (1,174) of equity shares Transfer to/from 226 11,849 12,075 reserves Return per ordinary 0.58p 4.90p 5.48p share - basic - assuming conversion 0.64p 4.81p 5.45p of loan stock The Throgmorton Trust PLC Statement of Total Recognised Gains and Losses - continued Six Months to 31 May 2000 Revenue Capital Total £000s £000s £000s (unaudited) (unaudited) (unaudited) Realised gains and - 27,395 27,395 losses Unrealised gains and - (36,532) (36,532) losses Income 4,904 - 4,904 Investment management (880) (880) (1,760) fee Other expenses (142) - (142) Net return before 3,882 (10,017) (6,135) finance costs and taxation Interest payable and (1,311) (1,212) (2,523) similar charges Return on ordinary 2,571 (11,229) (8,658) activities before taxation Tax on ordinary (78) 74 (4) activities Return on ordinary 2,493 (11,155) (8,662) activities after taxation attributable to equity shareholders Dividends in respect (1,296) - (1,296) of equity shares Transfer to/from 1,197 (11,155) (9,958) reserves Return per ordinary 0.92p (4.12)p (3.20)p share - basic - assuming conversion 0.96p (3.92)p (2.96)p of loan stock The Throgmorton Trust PLC Statement of Total Recognised Gains and Losses - continued Full Year to 30 November 2000 Revenue Capital Total £000s £000s £000s Realised gains and - 47,010 47,010 losses Unrealised gains and - (50,476) (50,476) losses Income 9,299 - 9,299 Investment management (1,734) (1,734) (3,468) fee Other expenses (309) - (309) Net return before 7,256 (5,200) 2,056 finance costs and taxation Interest payable and (2,616) (2,424) (5,040) similar charges Return on ordinary 4,640 (7,624) (2,984) activities before taxation Tax on ordinary (166) 163 (3) activities Return on ordinary 4,474 (7,461) (2,987) activities after taxation attributable to equity shareholders Dividends in respect of (3,766) - (3,766) equity shares Transfer to/from 708 (7,461) (6,753) reserves Return per ordinary 1.70p (2.84)p (1.14)p share - basic - assuming conversion 1.79p (2.60)p (0.81)p of loan stock The Throgmorton Trust PLC Cash Flow Statement for 6 months to 31 May 2001 At 31 May At 31 May At 30 Nov 2001 2000 2000 £000s £000s £000s Operating activities Cash received from investments 2,448 4,740 10,037 Interest received 365 173 321 Underwriting commission 18 53 60 Management fee (822) (907) (1,767) Cash paid to and on behalf of (52) (62) (120) directors Other cash payments (139) (219) (203) Net cash inflow from operating 1,818 3,778 8,328 activities Servicing of finance Interest paid - revenue (1,308) (1,312) (2,261) Taxation Taxation recovered/(paid) 6 (32) (33) Capital expenditure and financial investment Net sales of investments 24,216 29,390 46,580 Capital management fee (822) (907) (1,767) Interest charged to capital (1,212) (1,212) (2,425) Dividends Dividends paid (2,454) (4,315) Net cash inflow before financing 20,244 25,390 42,812 Financing Repurchase of ordinary shares (9,647) (26,395) (37,725) Net cash outflow from financing (9,647) (26,395) (37,725) Increase/(decrease) in cash 10,597 (1,005) 5,087 The Throgmorton Trust PLC Notes 1. The Trust's figures to 31 May 2001 and the comparative figures for the corresponding period are unaudited; those for the year to 30 November 2000 are based on the trust's accounts for that period, which carry an unqualified report from the auditors and have been filed with the Registrar of Companies. 2. In accordance with financial reporting standard 16 Current Taxation, UK dividend income has been shown net of its attributable tax credits. 3. Management fees payable and finance costs of debt are each currently allocated 50% to capital and 50% to revenue. 4. Due to share buy backs between the date that the accounts were signed and the ex-dividend date of the 2000 final dividend, the total final dividend paid was less than that accrued in the 2000 accounts. The adjustment has been reflected in the current accounting period. Between 1 December 2000 and 31 May 2001 the Company repurchased 9,885,000 ordinary shares at a cost of £9.6 million. 5. The directors have declared an interim dividend of 0.5p per share (2000 - 0.5p) payable on 10 August 2001 to shareholders on the register at the close of business on 13 July 2001. 6. The net asset value per ordinary share of 5p (loan stock not converted and prior charges at par value) is based on the shares in issue, the market value of listed investments and other net assets and liabilities. Unlisted investments are carried at directors' valuations. There have been no additions to unlisted investments since 30 November 2000. 7. Copies of the 2000 annual report and further copies of the interim results are available from the Trust's registered office, 155 Bishopsgate, London EC2M 3XJ. 8. The Trust's balance sheets as at 31 May 2001 and 30 November 2000 are shown in summary form and have been extracted from unaudited and audited accounts respectively as described in Note 1. 9. Group accounts have not been prepared as, in the opinion of the directors, the inclusion of the remaining subsidiary undertakings, taken together, is not material for the purpose of giving a true and fair view.

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