Interim Results

British & American Inv Trust PLC 28 September 2001 British & American Investment Trust PLC Interim Report 30 June 2001 Registered number: 433137 Directors Jonathan C Woolf (Chairman and Managing Director) Dominic G Dreyfus J Anthony V Townsend Ronald G Paterson Chairman's Statement I report our results for the 6 months to 30 June 2001. The return on revenue account before tax amounted to £1.3 million (£901,000). Total return before taxation, which includes both realised and unrealised capital appreciation, recorded a deficit of £2.0 million (£1.3 million deficit), reflecting the decline in equity valuations over the period, noted below. The return on revenue account per ordinary share was 4.26 pence on an undiluted basis (2.75 pence) and 3.54 pence on a fully diluted basis (2.47 pence). Group net assets were £46.7 million (£49.4 million at 31 December 2000), a decrease of 5.5 percent. Compensating for the special dividend payment of £ 625,000 in January 2001, the decrease in group net assets would be reduced to 4.3 percent. This compares to a decrease over the same six month period of 9.3 percent in the FTSE 100 share index and a fall of 8.5 percent in the FTSE All Share index. The net asset value per £1 ordinary share (prior charges deducted at par) was 147 pence, equivalent to 133 pence per share on a fully diluted basis. We intend to pay an interim dividend of 1.845 pence per ordinary share on 15 November 2001 to shareholders on the register at 12 October 2001. This represents an increase of 10.15 percent from last year's interim dividend. A preference dividend of 1.75 pence will be paid to preference shareholders on the same date. 2 The UK equity market declined significantly over the period as the unwinding of overvaluations from 2000, particularly in technology stocks, continued into the first half of the current year. A brief rally in valuations took place in the second quarter, but this was not sustained and prices resumed their negative trend across all sectors, and particularly in telecommunications, as lower forecasts for economic growth initially in the USA and subsequently the UK began to be recognised. Stocks generally posted double digit declines despite continued monetary easing both in the USA and the UK, while in the new economy sectors, many recently formed companies without a history of profitability and even some well established companies which had been constituents of the leading indices saw substantial declines in their market capitalisations. As at 25 September 2001, group net assets were £38.2 million, a decrease of 18.2 percent since 30 June. This compares with a decrease of 18.0 percent in the FTSE All Share index over the same period and is equivalent to 113.0 pence per share (prior charges deducted at par) and 109.2 pence per share on a fully diluted basis. The third quarter of 2001 started weakly, with the negative trends of the first half being continued. The uncertainties for markets generally given the weakness seen in economic performance in all the major world economies were, however, hugely compounded by the catastrophic events in the USA on 11 September which resulted in a further 10 percent fall in markets in the immediate aftermath of the event. The effects which this event and any consequential political actions will have on confidence and economic performance are impossible to gauge. In the light of these uncertainties, we will continue to maintain our investment profile in generalist and income producing investment trusts and certain other quality investments. This has resulted in movements in portfolio valuations which are comparable with those of the leading indices and also the ability to pay growing levels of ordinary dividends. As previously announced, the final 2.5 pence instalment of the special dividend payments following the reorganisation of First Leisure PLC in January 2000, will be made in the second half of this year. A further announcement will be made before the end of the year on the timing of this payment. Jonathan C Woolf 28 September 2001 Registered Office 214 The Chambers, Chelsea Harbour, London, SW10 OXF Telephone: 020 7376 3791 England No. 433137 Financial highlights For the 6 months ended 30 June 2001 6 months to 6 months to Year ended 30 June 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 Return before taxation 1,304 901 1,729 __________ __________ __________ Earnings per £1 ordinary shares 4.26p 2.75p 5.38p - basic __________ __________ __________ Earnings per £1 ordinary shares 3.54p 2.47p 4.84p - fully diluted __________ __________ __________ Investments at valuation and 47,512 53,134 50,865 cash at bank __________ __________ __________ Net assets per ordinary share - deducting preference £1.47 £1.65 £1.58 shares at par __________ __________ __________ - fully diluted £1.33 £1.46 £1.41 __________ __________ __________ Fully diluted net assets per £1.07 ordinary share at 25 September 2001 __________ Group balance sheet 31 June 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 FIXED ASSETS Investments 47,127 48,652 48,901 Cash and bank balances 385 4,482 1,964 OTHER NET CURRENT LIABILITIES (834) (1,919) (1,449) __________ __________ __________ Total assets less current 46,678 51,215 49,416 liabilities Creditors: amounts falling due - - - after more than one year __________ __________ __________ Net assets 46,678 51,215 49,416 __________ __________ __________ Capital and reserves (Note 5) 46,678 51,215 49,416 __________ __________ __________ Company Nature of Valuation Business £'000 Percentage of portfolio Prudential Life Assurance 6,891 14.62 Esporta Leisure 3,885 8.24 Liberty International Property 3,786 8.03 Securities Trust of Scotland Investment Trust 2,599 5.52 Alliance Trust Investment Trust 2,595 5.51 Dunedin Investment Trust 2,330 4.94 British Assets Investment Trust 2,265 4.81 Electra Investment Trust Investment Trust 2,074 4.40 RIT Capital Partners Investment Trust 1,619 3.44 Chatham Maritime EZT Enterprise Zone 1,250 2.65 Trust Aberdeen Preferred - Loan Fixed Interest 1,241 2.63 Stock stock St James Place Capital - Unit Unit Trust 1,052 2.23 Trust Murray International Investment Trust 912 1.94 Shires Income Investment Trust 905 1.92 Scottish American Investment Trust 875 1.86 Aberdeen Preferred - Ordinary Investment Trust 680 1.44 BFS Absolute Return Investment Trust 630 1.34 Invesco Convertible Trust Investment Trust 610 1.29 Georgica plc Leisure 590 1.25 The Throgmorton Trust Investment Trust 512 1.09 20 Largest investments 37,301 79.15 Other investments 9,826 20.85 Total investments 47,127 100.00 __________ __________ 6 months to 30 June 2001 6 months to 30 June 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Income (note 2) 1,504 - 1,504 1,160 - 1,160 Realised gains - 550 550 - 3,696 3,696 on investments (Decrease)/incre - (3,893) (3,893) - (5,867) (5,867) ase in unrealised appreciation Other expenses (192) - (192) (213) - (213) ________ ________ ________ ________ ________ ________ Net return 1,312 (3,343) (2,031) 947 (2,171) (1,224) before finance costs and taxation Interest (8) - (8) (46) - (46) payable and similar charges ________ ________ ________ ________ ________ ________ Return before 1,304 (3,343) (2,039) 901 (2,171) (1,270) taxation Taxation (63) - (63) (38) - (38) ________ ________ ________ ________ ________ ________ Return on 1,241 (3,343) (2,102) 863 (2,171) (1,308) ordinary activities after tax Dividend and (175) - (175) (175) - (175) other appropriations in respect of preference shares ________ ________ ________ ________ ________ ________ Return 1,066 (3,343) (2,277) 688 (2,171) (1,483) attributable to ordinary shareholders Dividend in (461) - (461) (419) - (419) respect of ordinary shares ________ ________ ________ ________ ________ ________ Transfer to 605 (3,343) (2,738) 269 (2,171) (1,902) reserves after dividends paid and proposed ________ ________ ________ ________ ________ ________ Return per ordinary share Basic 4.26p (13.37)p (9.11)p 2.75p (8.68)p (5.93)p Fully diluted 3.54p (9.55)p (6.01)p 2.47p (6.20)p (3.73)p (Note 4) Year ended 31 December 2000 Revenue Capital Total £'000 £'000 £'000 Income (note 2) 2,222 - 2,222 Realised gains on - 4,184 4,184 investments (Decrease)/increase in - (7,437) (7,437) unrealised appreciation Other expenses (408) - (408) _________ _________ _________ Net return before finance 1,814 (3,253) (1,439) costs and taxation Interest payable and (85) - (85) similar charges _________ _________ _________ Return before taxation 1,729 (3,253) (1,524) Taxation (33) - (33) _________ _________ _________ Return on ordinary 1,696 (3,253) (1,557) activities after tax Dividend and other (350) - (350) appropriations in respect of preference shares _________ _________ _________ Return attributable to 1,346 (3,253) (1,907) ordinary shareholders Dividend in respect of (1,794) - (1,794) ordinary shares _________ _________ _________ Transfer to reserves after (448) (3,253) (3,701) dividends paid and proposed __________ __________ __________ Return per ordinary share Basic 5.38p (13.01)p (7.63)p Fully diluted (Note 4) 4.84p (9.29)p (4.45)p 1 Accounting policies The results are based on unaudited Group consolidated accounts prepared under the historical cost convention as modified by the revaluation of investments. The results have been prepared in accordance with applicable Accounting Standards and with the Statement of Recommended Practice, 'Financial Statements of Investment Trust Companies'. 2 Total income 6 months to 6 months to Year ended 30 June 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 Turnover - film revenue 127 81 202 Income from 1,311 965 1,609 investments Interest receivable 28 102 387 Other income 38 12 24 __________ __________ __________ 1,504 1,160 2,222 __________ __________ __________ 3 Dividends 6 months to 30 June 2001 6 months to 30 June 2000 Pence per Pence per share £ share £ Ordinary shares - 1.845 461,250 1.675 418,750 interim Preference shares - 1.75 175,000 1.75 175,000 fixed ________ ________ 636,250 593,750 _________ _________ The dividends on ordinary shares are based on 25,000,000 ordinary £1 shares. Dividends on preference shares are based on 10,000,000 non-voting 3.5% convertible preference shares of £1. The holders of the 3.5% convertible preference shares will be paid a dividend of £175,000 being 1.75p per share. The payment will be made on the same date as the dividend to the ordinary shareholders. 4 Return per ordinary share 6 months 6 months Year ended to 30 June to 30 June 31 December 2001 2000 2000 Standard earnings per share Calculated on the basis of: Return after taxation and £1,066,000 £688,000 £1,346,000 preference dividends __________ __________ __________ Ordinary shares in issue 25,000,000 25,000,000 25,000,000 __________ __________ __________ Fully diluted earnings per share Calculated on the basis of: Return after taxation £1,241,000 £863,000 £1,696,000 __________ __________ __________ Ordinary and preference shares 35,000,000 35,000,000 35,000,000 in issue __________ __________ __________ Independent review report to British & American Investment Trust PLC Introduction We have been instructed by the company to review the financial information for the six months ended 30 June 2001 which comprises the consolidated balance sheet, consolidated statement of total return and the related notes numbered 1 to 9. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/ 4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2001. Arthur Andersen Chartered Accountants 20 Old Bailey London EC4M 7AN 28 September 2001 5 Capital and reserves 30 June 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 Called up share capital - ordinary 25,000 25,000 25,000 - preference 10,000 10,000 10,000 Capital reserve - 12,677 11,639 12,127 realised Capital reserve - (3,909) 1,554 (16) unrealised Profit and loss 2,910 3,022 2,305 account __________ __________ __________ 46,678 51,215 49,416 __________ __________ __________ 6 Consolidated cash flow statement 6 months to 6 months to Year ended 30 June 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 Net cash inflow from 1,318 917 1,732 operating activities Servicing of finance - interest paid (6) (46) (91) - preference dividends (175) (175) (350) paid Taxation recovered/(paid) 64 23 (10) Investment purchases (3,168) (2,570) (5,502) Investment sales 1,763 6,301 7,821 Equity dividends paid (1,375) (1,938) (2,356) Financing - - (1,250) __________ __________ __________ (Decrease)/increase in cash (1,579) 2,512 (6) __________ __________ __________ 7 Net asset value attributable to each share Basic net asset value attributable to each share has been calculated by reference to 25,000,000 ordinary shares, and net assets attributable to shareholders as follows: 30 June 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 Total net assets 46,678 51,215 49,416 Less preference shares (10,000) (10,000) (10,000) __________ __________ __________ Net assets attributable to 36,678 41,215 39,416 ordinary shareholders __________ __________ __________ Fully diluted net asset value attributable to each share has been calculated by reference to total net assets and 35,000,000 ordinary and preference shares. In both cases the effective net assets of the group have been calculated taking investments at their market value and after making certain other adjustments. 8 The financial information set out above is unaudited and does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Statutory accounts for the year ended 31 December 2000, which received an unqualified auditors' report, have been filed with the Registrar of Companies. 9 A copy of this statement has been sent today to the company's shareholders, and members of the public may obtain a copy on application to the company's registered office.

Companies

British American Inv Trust (BAF)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today