Final Results
Graphite Enterprise Trust PLC
20 March 2006
For release at 0700, 20 March 2006
GRAPHITE ENTERPRISE TRUST PLC
UNAUDITED PRELIMINARY STATEMENT OF RESULTS
FOR THE YEAR TO 31 DECEMBER 2005
HIGHLIGHTS OF THE YEAR
Net assets per share +22.6%
Share price +28.7%
Realisations £86.2m
New commitments £100.0m
Share buy-backs £14.6m
Total dividends per share 8.8p
FINANCIAL RESULTS
2005 2004 Change
Net assets per share 398.4p 324.9p +22.6%
Share price 364.3p 283.0p +28.7%
Final dividend per share 4.3p 4.3p -
Special dividend per share 4.5p 2.8p +60.7%
PERFORMANCE
Years to 31/12/05 1 3 5 10
NAV per share +22.6% +51.2% +19.3% +284.0%
Share price +28.7% +76.4% +15.3% +323.5%
FTSE All-Share Index +18.1% +50.3% -4.6% +57.9%
Chairman's Statement
Overview
Graphite Enterprise made good progress in 2005. The highlights were strong
performance, substantial commitments to new private equity funds and a
repositioning of the balance sheet.
Net asset value per share rose by 22.6% to 398.4p and the share price rose by
28.7% to 364.3p. These increases compare with a rise of 18.1% in our benchmark,
the FTSE All-Share Index. At the year end shareholders' funds were £338.1
million.
The discount of the share price to the underlying net asset value narrowed from
12.9% to 8.6%. The discount had not been consistently at such a low level since
2000. This reduction was in line with a general narrowing of discounts in the
private equity investment trust sector.
Our objective is to provide shareholders with long term capital growth. Despite
a strong performance in 2005, the FTSE All-Share Index has yet to regain the
levels it reached in 2000. In the five years to 31 December 2005 the Index fell
by 4.6%, while the net asset value per share of Graphite Enterprise rose by
19.3% and its share price by 15.3%.
Longer term performance of Graphite Enterprise has been strong, with increases
of 284.0% in the net asset value per share and 323.5% in the share price in the
ten years to 31 December 2005. These movements compare with an increase of
57.9% in the FTSE All-Share Index over the same period.
The increase in net asset value in 2005 was largely driven by a series of
profitable disposals in a favourable market. At the same time, a number of high
quality managers raised new private equity funds and this gave us the
opportunity to increase commitments to funds. As a result, 2005 was
characterised by a high level of disposals and an even higher level of new fund
commitments.
The commitments to new funds contributed to the repositioning of the balance
sheet. In addition, we purchased a call option over the FTSE 100 Index to ensure
that future performance should not be held back by high levels of cash. We also
made share buy-backs at a record level. As a result of these actions, all of
which are described in more detail below, the levels of uninvested and
uncommitted cash and near-cash fell substantially.
Portfolio
Against a favourable market background, proceeds from disposals were £86.2
million (2004: £109.3 million). In both 2004 and 2005, these proceeds
represented an exceptionally high 57% of the opening portfolio compared with an
average of 34% over the previous eight years.
Total new commitments to funds were £100.0 million, of which £20.9 million was
drawn down in the year. Including this amount, cash investments in the
portfolio were £45.5 million, 50.1% higher than in 2004. Net realised and
unrealised gains from the investment portfolio were £63.4 million. Of this
amount, £61.2 million related to the opening portfolio, representing an increase
in its value of 40.4%.
At 31 December 2005, 50.1% of the investment portfolio was held in funds and
49.9% was held in direct investments.
Balance sheet
Following a series of substantial and successful disposals in 2004, at the
beginning of 2005 Graphite Enterprise held cash and near-cash assets of £144.5
million. Commitments, the great majority of which were to funds, were £83.3
million, leaving £61.2 million of cash uncommitted.
The continuing high level of disposals in 2005 resulted in a net inflow of cash
from the portfolio. As a result, however, of increasing fund commitments,
purchasing a call option over the FTSE 100 Index and buying back shares, the
effective levels of uninvested and uncommitted assets have fallen substantially.
At the year end, cash and near-cash assets were £149.9 million, representing
43.5% of total net assets compared with 48.8% at the beginning of the year.
Commitments had increased to £147.7 million, leaving only £2.2 million of cash
uncommitted.
Gearing policy
As the fund portfolio matures it is likely to generate more cash from disposals.
To ensure that this cash is reinvested, it will be necessary to make
commitments to funds exceeding the level of available cash. It is unlikely that
borrowing facilities will be required to fund this overcommitment in the short
term, as new commitments are typically drawn down over three to five years,
current levels of cash are significant and the existing portfolio will continue
to return cash.
We believe, however, that in the longer term significant overcommitments should
be at least partly covered by borrowing facilities. The level of overcommitment
at which borrowing facilities will be required will change with the balance of
the portfolio, levels of cash and general economic conditions. These are kept
under regular review by the board.
FTSE Option
In October we purchased a call option over the FTSE 100 Index with a three year
maturity. This was in order to address the risk of underperformance in a rising
market which would result from holding high levels of cash.
The cost of the Option was £14.0 million. Its effect is to give Graphite
Enterprise exposure to a £120.0 million investment in the FTSE 100 Index at an
opening level of 5,142. If the Index rises, the Option will give Graphite
Enterprise exposure to the rise. If the Index falls, the Option will fall in
value. However, the maximum fall is limited to the original £14.0 million cost.
At 31 December 2005, the FTSE 100 Index had increased by 9.3% to 5,618 and the
value of the Option had increased by £6.2 million.
Including the £120 million nominal value of the Option and excluding its cost,
Graphite Enterprise was effectively 87.2% invested as a percentage of total net
assets at 31 December 2005.
Assets invested as a % of
total net assets
2005 Investment portfolio 50.6%
Effect of FTSE Option 36.6%
Total 87.2%
2004 51.1%
2003 72.4%
2002 68.4%
2001 64.5%
Share buy-backs
We have continued to follow the policy of enhancing shareholder returns by
buying back shares when they are available in reasonable volumes at an
attractive discount, while maintaining sufficient liquidity for new investments.
A total of 4.85 million shares was bought back during the year, more than in all
previous years combined and representing 5.4% of opening issued share capital.
The cost of the buy backs was £14.6 million.
Prices paid varied between 283.0p and 332.0p per share, with an average price of
298.5p, and an average discount to net asset value per share of 12.6%. The
buy-backs enhanced net asset value per share by 5.3p.
To date, shares which have been bought back have not been held in treasury, but
have been cancelled. Holding shares in treasury, however, would give the
Company the flexibility to re-issue them at a later date if considered
appropriate. In order for it to be practical to do so, it is necessary to
disapply existing shareholders' pre-emption rights. A resolution will be put to
the forthcoming Annual General Meeting to this effect.
Income statement and dividend
Profit after tax attributable to shareholders for the year was £68.8 million, or
78.8p per share (2004: 42.2p). The capital return was £59.9 million or 68.6p
per share (2004: 33.6p), and the revenue return attributable to shareholders,
from which dividends are paid, was £8.9 million or 10.2p per share (2004: 8.5p).
Principally as a result of higher dividend and interest income from portfolio
investments, 2005 was another exceptional year for income. Much of this came
from large one-off payments received from companies on their disposal or
refinancing. The increase in the revenue return was partly offset by a higher
tax charge and slightly higher expenses.
The exceptional level of income allowed us to pay a special dividend of 4.5p per
share in December. The Board is recommending an unchanged final dividend of
4.3p per share, bringing the total for the year to 8.8p compared with 7.1p for
2004.
International Financial Reporting Standards (IFRS)
International Financial Reporting Standards have been applied for the first time
in 2005. The impact on Graphite Enterprise has not been significant. The main
change is in the timing of recognition of dividends payable by the Company,
which are now shown in the period in which they are paid or approved. This has
had the effect of increasing the net asset value per share at 31 December 2004
from 320.6p to 324.9p.
There have been some changes to the format of the financial statements. The
statement of total return is now called the income statement, the format of the
cash flow statement has changed, and a new statement, the statement of changes
in equity, has been introduced. Certain line items have also been reclassified.
All comparatives have been restated accordingly.
Outlook
The private equity market remains active, sustained by plentiful debt and equity
finance, a stable economic background and strong financial markets. In the
absence of a shock to markets, there is little reason to expect a significant
change in these conditions over the next six to nine months.
The private equity sector is increasingly recognised as a mature and powerful
force in corporate finance, with the result that it has attracted more capital
and a wider spread of investors. Over the medium and long term this is likely
to result in performance more closely correlated with the quoted markets. Risks
and returns from private equity investments are both likely to be lower. The
stronger performers should still perform markedly better than the quoted
markets, although the degree of outperformance is likely to be less.
The high level of activity in 2005 has continued into the current year.
Additions to the portfolio in the first two months were £26.6 million and
disposals were £26.1 million. Although 2005 was an exceptional year for private
equity fund raising in Europe, a number of high quality managers are raising
funds in 2006. We have made commitments to funds of €50 million (£34.3 million)
since the beginning of the year.
Having disposed of a large number of mature investments in the last two years,
we expect that the rate of disposals will slow in the next twelve months and
that there will be a closer balance between inflows and outflows from the
existing portfolio. If there are enough high quality funds available, we expect
to increase the level of commitments again in 2006. We shall also consider
extending the range of funds in the portfolio to include other sectors and
geographical areas.
John Sclater
March 2006
Manager's Review
The portfolio increased in value by £69.6 million during the year. As disposals
exceeded additions by £26.7 million, the overall movement in the portfolio was
£42.9 million, giving a closing value of £194.6 million (2004: £151.7 million).
2005 £m Opening value Additions Disposals Gains and Closing value
losses
Investment portfolio 151.7 45.5 (86.2) 63.4 174.4
FTSE option - 14.0 - 6.2 20.2
Total investments 151.7 59.5 (86.2) 69.6 194.6
Disposals
Graphite Enterprise took advantage of favourable market conditions to dispose of
a number of mature investments which had performed well. As an attractive
alternative to outright disposal, it was frequently possible to refinance
companies, generating capital proceeds whilst typically maintaining an unchanged
equity interest. Total proceeds from disposals were £86.2 million.
In the first half of the year, Wagamama was sold in a transaction valuing
Graphite Enterprise's investment at £13.9 million, of which £7.0 million was
realised in cash and the remainder was reinvested in the company. The
investments in Ridgmont Care Homes, Leaderflush + Shapland and Babcock Borsig
were also sold generating total proceeds of £19.5 million, in each case at a
significant uplift over the carrying value at the beginning of the year.
In the second half, Jane Norman was sold in the largest disposal of the year.
Graphite Enterprise invested £7.4 million in the company in 2003. Jane Norman is
a retailer of female fashion clothing and accessories. During the life of the
investment, the number of outlets more than doubled and sales increased
significantly. The investment was sold in July for total proceeds of £21.3
million including income of £1.8 million. This represented a multiple of 2.9
times cost and an annual internal rate of return over the life of the investment
of 52.5%.
In 2000, Graphite Enterprise invested £2.1 million in Huntress Search, a
recruitment consultancy, which was then a start-up. The company was refinanced
in August and made a payment to Graphite Enterprise of £6.0 million. The
residual holding is valued at £3.0 million. A number of other disposals and
refinancings, both of direct investments and of those held through funds,
yielded further capital proceeds of £34.1 million. These included the
refinancing of Weetabix, Elis and Summit Medical, the sale of investments in
Tesla Magnetic and Equanet, and the partial disposal of the stake in
Intermediate Capital Group plc.
Additions
The largest new investment in the year was of £5.0 million in Kwik-Fit, Europe's
largest automotive fast-fit services provider. The investment is held both in
PAI Europe IV and in a co-investment alongside the fund. Other significant
investments, made either directly or through funds, included:
• £2.4 million to acquire an additional stake in Go Plant, an operator of
road sweeping vehicles.
• £2.3 million in Christian Hansen, the leading worldwide supplier of
natural ingredients to the food industry.
• £1.9 million in Integrity Software, which develops and supplies
software applications for companies in a range of industries.
• £1.8 million in Moeller, a supplier of electrical equipment.
Overall, £39.0 million was invested in buyouts and similar transactions, £4.5
million was invested in infrastructure projects and £2.0 million in mezzanine
finance.
Commitments
New commitments of £100.0 million were made during the year and further
commitments of £34.3 million have been made since the year end. Details of the
new commitments in 2005 and to date in 2006 are set out below:
Commitment
Fund £m
PAI Europe IV 20.6
Candover 2005 Fund 20.4
Doughty Hanson & Co IV 15.2
Lion Capital I 15.1
Deutsche Beteiligungs Fund V 13.7
CVC European Equity Partners IV 10.3
Other 4.7
New commitments in 2005 100.0
Fourth Cinven Fund 20.6
Charterhouse Capital Partners VIII 13.7
New commitments to date in 2006 * 34.3
* At year end exchange rates
• PAI Europe IV is a €2.7 billion fund which invests in large European
buy-outs. The manager, PAI Partners, is based in France. The fund made five
investments in 2005.
• The Candover 2005 Fund is a €3.5 billion fund which invests in
pan-European buy-outs with enterprise values in the range €150m to €1.5 billion.
No investments had been made by the year end.
• Doughty Hanson & Co IV is a €1.6 billion fund which invests in
leveraged buy-outs of businesses with enterprise values in excess of €250
million, mainly in Europe. Five investments had been made by the year end, one
of which, Saft, had already been successfully refinanced and floated by the end
of 2005.
• Lion Capital I is an €820 million fund which invests in buy-outs of
consumer brand and media businesses across Europe. It had made four investments
by the end of 2005.
• Deutsche Beteiligungs Fund V is a €434 million fund which invests in
buy-outs of companies with enterprise values of between €50 million and €250
million in Germany, Austria and Switzerland. It had not made any investments by
the year end.
• CVC European Equity Partners IV is a €6.0 billion fund which invests in
medium-sized and large buy-outs across Europe. The fund had made two investments
by the year end.
• The Fourth Cinven Fund is a €4.4 billion fund which will invest in
large pan-European buy-outs.
• Charterhouse Capital Partners VIII is a €4.0 billion fund which will
invest in medium-sized and large buy-outs throughout Europe.
Geographic distribution
Country / region % of total investment portfolio
UK 67.5%
Germany 9.7%
France 7.6%
Spain 6.4%
Other European 6.4%
North America 2.4%
Total 100.0%
At 31 December 2005, 67.5% (2004: 66.6%) of the investment portfolio of £174.4
million was in the UK, with 30.1% (2004: 32.4%) in continental Europe and 2.4%
(2004: 1.0%) elsewhere.
We expect the majority of investments to continue to be based in the UK and
continental Europe, although we may consider investments outside Europe,
particularly in North America. Of the eight significant new fund commitments
made since 1 January 2005, seven have a pan-European scope and one is focused
mainly on Germany.
Sector analysis
% of total investment
portfolio
Business services 25.5%
Consumer goods and services 16.3%
Manufacturing, engineering and similar 13.4%
Other 11.0%
Leisure 8.8%
Construction and building supplies 8.5%
Merchant banking and finance 6.3%
Retailing 6.2%
Advertising and recruitment 4.0%
Total 100.0%
The portfolio continues to be widely diversified. At 31 December 2005, the
largest exposures were to the business services and consumer goods and services
sectors which represented 25.5% and 16.3% of the portfolio respectively. At 31
December 2004, the largest sector exposures were to business services (26.0%),
and retailing (11.0%).
During the year £9.8 million was invested in companies in the manufacturing and
engineering sectors, £7.6 million in consumer goods and services and £5.1
million in business services. Exposure to the retail sector has been reduced
through the successful sale of Jane Norman, which was valued at £7.4 million at
the end of 2004.
Investment type
Type % of total investment portfolio
Medium-sized buy-out 63.8%
Large buy-out 11.6%
Quoted 9.3%
Mezzanine 8.2%
Infrastructure 4.7%
Small buy-out 2.4%
Total 100.0%
The main focus remains on equity-based investments in medium-sized management
buyouts and similar transactions, which accounted for 63.8% of the portfolio at
31 December 2005 (2004: 65.4%). Large and small buy-outs comprised 11.6% and
2.4% of the portfolio respectively (2004: 2.5% and 1.8%). Following the recent
substantial commitments to large buy-out funds, we expect this category to
increase in size.
Mezzanine and infrastructure investments represented 8.2% and 4.7% of the
portfolio respectively (2004: 10.8% and 3.1%). A further 9.3% of the portfolio
(2004: 11.5%) was held in quoted companies previously held as unquoted
investments before flotation. In 2004, 4.9% was held in start up or early stage
companies. The increasing maturity of these companies has made it appropriate
to reclassify them as either medium-sized or small buy-outs in 2005.
The portfolio is therefore concentrated in mature companies and we expect it to
remain so.
Year of investment
Year % of total investment portfolio
2005 18.7%
2004 11.7%
2003 10.6%
2002 16.8%
2001 15.9%
2000 and before 26.3%
Total 100.0%
In the above table, value is allocated to the year in which Graphite Enterprise
first invested in the relevant company or project.
With the exception of 2003 and 2004, the portfolio is quite evenly distributed.
The low figures for 2003 and 2004 reflect the relatively low levels of
investment in those years, compounded by the early sale of some 2003
investments, including the successful sale of Jane Norman and Babcock Borsig.
More recent investments are also less likely to be held at a valuation
significantly greater than their original cost.
Investment activity in 2006
Additions to the portfolio in the first two months of the year were £26.6
million and disposals from the portfolio were £26.1 million. The most
significant transactions are described below.
In January and February, £9.2 million was invested through Graphite Capital
Partners VI in three companies, and a further £7.4 million was invested in two
of these companies as co-investments alongside the fund. These were Micheldever
Tyre Services, the UK's leading independent tyre distributor, and Cinque Ports
Leisure, the UK's third largest holiday home and caravan park group.
The investment in U-POL Products was sold in February 2006 for capital proceeds
of £12.7 million. The full value of this disposal is reflected in the year end
balance sheet. Total proceeds over the life of the investment including income
represent a multiple of 3.2 times cost and an annual internal rate of return of
55.2%.
We are at an advanced stage in considering a number of other new investments and
commitments to funds.
Graphite Capital
March 2006
For further information, please contact:
Rod Richards / William Eccles Tel: 020 7825 5300
Graphite Capital
Top 30 underlying investments
The table below presents the 30 companies in which Graphite Enterprise has the
largest investments by value at 31 December 2005. Those investments may be held
directly, through funds, or in some cases both. Values have been attributed to
investments held through funds by allocating the total value of Graphite
Enterprise's interest in each fund in proportion to the gross value of each
company in that fund's accounts. Values are shown as a percentage of the total
investment portfolio of £174.4 million.
Value as a % of
total investment
portfolio
Year of Country /
region
Entity investment
1 U-POL
Supplier of fillers, coatings and other automotive 2002 UK 7.3%
products
2 Wagamama
Chain of Japanese noodle restaurants 1996 UK 4.7%
3 Standard Brands
Supplier of household fire lighting products 2001 Europe 3.9%
4 Preh
Manufacturer of automotive components 2003 Germany 3.8%
5 Go Plant
Operator of road sweeping vehicles 1995 UK 3.7%
6 Intermediate Capital *
Provider of mezzanine finance to unquoted companies 1989 Europe 3.2%
7 Kwik-Fit
Provider of automotive fast-fit services 2005 Europe 2.9%
8 Applied Energy
Manufacturer of ventilation and heating products 2001 UK 2.4%
9 OPD Group * (formerly PSD Group)
Group of specialist recruitment agencies 1991 UK 2.2%
10 Leading Edge
Printer of self adhesive labels and packaging 2003 UK 2.2%
11 Burton's Foods
Manufacturer of biscuits 2000 UK 2.2%
12 Golden Tulip
Developer and manager of hotels 2002 UK 2.1%
13 Computacenter *
Provider of IT equipment and services to large 1985 UK 2.1%
organisations
14 JT Frith
Operator of discount warehouses 2004 UK 1.7%
15 Huntress Search
Recruitment consultancy 2000 UK 1.7%
Value as a % of
total investment
portfolio
Year of Country /
region
Entity investment
16 Grupo TMA
Provider of waste management services 2001 Spain 1.7%
17 Bridgewell
Provider of corporate finance and broking services 2001 UK 1.5%
18 PIFC
Pensions and employment benefits consultancy 2002 UK 1.5%
19 Weetabix
Manufacturer of breakfast cereals 2004 Global 1.5%
20 Olan Mills
Chain of portrait photography studios 2004 UK 1.3%
21 Christian Hansen
Supplier of natural ingredients to the food industry 2005 Global 1.3%
22 Home Office Accommodation
Project to replace Home Office's London 2002 UK 1.3%
accommodation
23 Aster City
Operator of cable TV 2003 Poland 1.3%
24 EurotaxGlass's
Provider of automotive information 2003 Europe 1.2%
25 Segur Iberica
Provider of security services and products 2004 Spain 1.2%
26 Lucite
Producer of chemicals 1999 Global 1.1%
27 Otto Sauer
Manufacturer of components for heavy duty trailers 2004 Germany 1.1%
28 Integrity
Provider of software to niche retailers 2005 UK 1.1%
29 Moeller
Supplier of electrical components 2005 Germany 1.1%
30 Ottakar's *
Retailer of books 1995 UK 1.0%
Total of the 30 largest underlying investments 65.3%
* Quoted
Top 15 fund investments
The largest funds by value at 31 December 2005 are set out below.
Fund Outstanding Year of Country /
commitment £m commitment region Value £m
1 Graphite Capital Partners VI
Medium-sized buy-outs 37.2 2003 UK 10.4
2 Hicks, Muse, Tate & Furst Europe Fund
Large buy-outs 4.8 2000 Europe 10.3
3 Corpfin Capital Fund II
Medium-sized buy-outs 0.3 2000 Spain 10.1
4 ICG Mezzanine Fund 2000
Mezzanine loans to large buy-outs 0.8 2000 Europe 9.1
5 PAI Europe IV
Large leveraged buy-outs 12.7 2005 Europe 7.7
6 Deutsche Beteiligungs AG Fund IV
Medium-sized buy-outs primarily of 3.0 2000 Germany 7.1
manufacturers
7 Doughty Hanson & Co IV
Leveraged buy-outs of medium-sized and 9.2 2005 Europe 6.0
large companies
8 Euromezzanine 4 FCPR
Mezzanine loans to medium-sized buy-outs 0.4 2003 France 5.1
9 Barclays European Infrastructure Fund
Infrastructure projects 6.4 2002 UK 4.1
10 HSBC Infrastructure Fund
Infrastructure projects 6.1 2001 UK/Europe 4.0
11 Lion Capital I
Medium-sized buy-outs primarily of consumer 11.7 2005 UK/Europe 3.1
businesses
12 Charterhouse Capital Partners VI
Large buy-outs 0.4 1997 UK/Europe 3.0
13 Piper Private Equity Fund III
Small buy-outs of consumer businesses 1.0 2003 UK 2.4
14 Activa Capital Fund FCPR
Medium-sized buy-outs 4.5 2002 France 2.1
15 Bowmark Capital Partners III
Small buy-outs 3.5 2004 UK 1.4
Total of largest 15 fund investments 102.0 85.9
Percentage of total commitments / 49.2%
investment portfolio 69.1%
GRAPHITE ENTERPRISE TRUST PLC
Preliminary Statement (unaudited) for the year ended 31 December 2005
SUMMARY CONSOLIDATED BALANCE SHEET (unaudited)
At 31 December
2005 2004
£'000s £'000s
Unquoted investments 159,286 134,152
Quoted investments 15,065 17,442
174,351 151,594
FTSE 100 Call Option 20,254 -
Total investments held at fair value 194,605 151,594
Net current assets 149,924 144,494
Total assets less current liabilities 344,529 296,088
Minority interests (6,389) (4,609)
Equity attributable to equity holders 338,140 291,479
SUMMARY CONSOLIDATED INCOME STATEMENT (unaudited)
For the year ended 31 December
2005 2004
Revenue Capital Total Revenue Capital Total
£'000s £'000s £'000s £'000s £'000s £'000s
Gains and losses on investments - 69,589 69,589 - 37,372 37,372
held at fair value
Investment income 14,211 - 14,211 11,505 - 11,505
Foreign exchange gains and losses - (208) (208) - 269 269
14,211 69,381 83,592 11,505 37,641 49,146
Expense
Investment management charges (1,117) (3,350) (4,467) (1,034) (2,801) (3,835)
Other expenses (960) (288) (1,248) (874) - (874)
(2,077) (3,638) (5,715) (1,908) (2,801) (4,709)
Profit before tax 12,134 65,743 77,877 9,597 34,840 44,437
Taxation (3,193) 1,142 (2,051) (1,864) 1,864 -
Profit for the period from
continuing operations 8,941 66,885 75,826 7,733 36,704 44,437
Attributable to:
Equity shareholders 8,941 59,894 68,835 7,733 30,445 38,178
Minority interests - 6,991 6,991 - 6,260 6,260
Basic and diluted earnings per 78.8p 42.2p
share
CONSOLIDATED CASH FLOW STATEMENT (unaudited)
For the year ended 31 December 2005 2004
£'000s £'000s
Operating activities
Sale of portfolio investments 86,248 109,251
Purchase of portfolio investments (45,556) (30,337)
Purchase of FTSE 100 Call Option (14,028) -
Income received from investments 6,634 6,745
Other income 6,688 4,140
Investment management charges paid (4,356) (3,736)
Other expense (1,123) (1,045)
Taxation 312 -
Net cash inflow from operating activities 34,819 85,018
Financing activities
Investments by minority interests 205 194
Distributions to minority interests (5,414) (5,908)
Purchase of ordinary shares (14,580) (2,890)
Equity dividends paid (7,678) (6,417)
Net cash outflow from finance activities (27,467) (15,021)
Net increase in cash and cash equivalents 7,352 69,997
Cash and cash equivalents at beginning of year 143,727 73,461
Net increase in cash and cash equivalent 7,352 69,997
Effect of changes in foreign exchange rates (208) 269
Cash and cash equivalents at end of year 150,871 143,727
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the year ended 31 December 2005 2004
£'000s £'000s
Total equity at the beginning of the period 296,088 266,717
Adoption of IAS 32 and IAS 39 83* -
Profit attributable to equity shareholders 68,835 38,178
Profit attributable to minority interests 6,991 6,260
Total profit for the period and total recognised
income and expenses 75,909 44,438
Dividends to equity shareholders (7,677) (6,416)
Purchase of ordinary shares (14,580) (2,890)
Net distribution to minority interests (5,211) (5,761)
Total equity at the end of the period 344,529 296,088
*The adoption of IAS 32 and IAS 39 increased shareholders' equity by £83,000 and
had no impact on minority interests.
The Directors propose a final dividend in respect of the year ending 31 December
2005 of 4.3p payable on 2 June 2006 to shareholders who are on the register of
members on 12 May 2006.
The above financial information comprises non-statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The financial information for
the year ended 31 December 2004 has been extracted from published accounts for
the year ended 31 December 2004 which have been delivered to the Registrar of
Companies and on which the report of the auditors was unqualified. The
financial information extracted has been restated for the first-time adoption of
International Financial Reporting Standards.
As permitted by IFRS 1, IAS 32 and IAS 39 were not applied to the financial
information for the comparative period presented in this statement. They have
been applied for the first time for the year ended 31 December 2005. The impact
of this at 1 January 2005 was to increase listed investments, the capital
reserve and equity attributable to equity shareholders each by £83,000. This is
reflected in the Consolidated Statement of Changes in Equity above.
The Annual General Meeting will be held at 11.30 a.m. on Thursday 25 May 2006 at
The Richmond Room, The Washington Mayfair Hotel, 5/7 Curzon Street, London W1.
The registered office of the Company is 4th Floor, Berkeley Square House,
Berkeley Square, London W1J 6BQ.
For the year ended 31 December 2005 copies of the audited Report and Accounts
will be posted to shareholders on or about 17 April 2006 and copies may be
obtained during normal business hours from the Company's registered office
thereafter.
By order of the Board
Graphite Capital Management LLP
Secretary
20 March 2006
This information is provided by RNS
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