Interim Results
Henderson Eurotrust PLC
13 March 2007
HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2007
Financial Highlights
(Unaudited) (Unaudited) (Audited)
Half year Half year Year
ended ended ended
31 January 31 January 31 July 2006
2007 2006 in pence
in pence in pence
Net asset value per ordinary share 528.74 457.14 473.91
Dividends per ordinary share 2.00 2.00 5.50
Revenue return per ordinary share 0.33 0.25 5.67
Extracts from the Chairman's Statement
It has been another good period for European markets, and in the six months to
the end of January 2007, markets have risen by 13.7% and the net asset value of
the Company by 11.6%. There continues to be a benign environment for equities in
Europe, with the combination of good earnings growth and better than expected
economic growth in all major economies more than outweighing further increases
in interest rates.
During the past six months there have been a variety of leaders in the market.
Merger and acquisition activity has been strong, although none of the holdings
in the portfolio have been directly affected. An area of the market which has
not performed so strongly has been the reliable growth companies, where the
Company has a large exposure. This has caused the performance of the Company to
lag slightly behind that of the Index, but not to an alarming degree. It
continues to be our Manager's expectation that economic growth will slow in the
course of this year, and given the relatively low valuation of many of the
reliable growth companies, it is to be expected that their share prices will
perform better.
Earnings and Dividends
Over the first half of the year the revenue return of the Company amounted to
£86,000. The Board has declared an unchanged interim dividend of 2.00p per share
payable on 12 April 2007. The interim dividend is being held at the same level
as last year. As mentioned in previous interim reports, the majority of the
Company's revenue arrives in the next few months. We expect most holdings to
increase their dividend again this year, and we would hope to be able to do the
same with our final dividend subject to market conditions. However, the primary
objective of the Company continues to be growth.
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Page 2 of 7
HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2007
Chairman's Statement (continued)
Outlook
After such a sustained and extended rise in the markets, it would be entirely
healthy for markets to have a period of consolidation. It is not clear what will
be the immediate catalyst for such a correction, given the strength which
currently prevails in economies and earnings in Europe. As our Manager mentioned
in the Annual Report, the growing acceptance of change amongst most European
economies and companies has created an interesting environment for European
equities, and the prospects for further gains looks good, in spite of potential
short term setbacks which may or may not occur. The focussed approach of our
Manager on a short list of companies chosen by their merits continues to work
well.
For further information please contact:
Tim Stevenson
Henderson EuroTrust plc
Telephone: 020 7818 4342
James de Sausmarez
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 3349
Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors
Telephone: 020 7818 3198
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2007
Income Statement
for the half year ended 31 January 2007
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
31 January 2007 31 January 2006 31 July 2006
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains from
investments held
at fair value
through profit or
loss - 15,337 15,337 - 16,538 16,538 - 20,119 20,119
Income from
investments held
at fair value
through
profit or loss 288 - 288 238 - 238 2,339 - 2,339
Other interest
receivable and
similar income 47 - 47 34 - 34 97 - 97
------- -------- --------- --------- --------- --------- --------- --------- --------
Gross revenue and
capital gains 335 15,337 15,672 272 16,538 16,810 2,436 20,119 22,555
Management and
performance fees (110) (449) (559) (92) (1,051) (1,143) (197) (1,523) (1,720)
Other administrative
expenses (98) - (98) (116) - (116) (186) - (186)
------- -------- --------- --------- --------- --------- --------- --------- --------
Net return on
ordinary activities
before finance
costs and taxation 127 14,888 15,015 64 15,487 15,551 2,053 18,596 20,649
Finance costs - (2) (2) (1) (5) (6) (4) (17) (21)
------- -------- --------- --------- --------- --------- --------- --------- --------
Net return on
ordinary activities
before taxation 127 14,886 15,013 63 15,482 15,545 2,049 18,579 20,628
Taxation on net
return on ordinary
activities (41) - (41) - - - (594) 328 (266)
------- -------- --------- --------- --------- --------- --------- --------- --------
Net return on
ordinary activities
after taxation 86 14,886 14,972 63 15,482 15,545 1,455 18,907 20,362
======= ======== ========= ========= ========= ========= ========= ========= ========
Return per ordinary
share (note 2) 0.33p 58.00p 58.33p 0.25p 60.32p 60.57p 5.67p 73.66p 79.33p
======= ======== ========= ========= ========= ========= ========= ========= ========
The total columns of this statement represents the income statements of the
Company.
All revenue and capital returns in the above statement derive from continuing
operations.
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2007
Reconciliation of Movements in Shareholders' Funds
for the half year ended 31 January 2007
Called up Share Other
share premium capital Revenue
capital account reserves reserve Total
For the half year ended 31 January 2007 £'000 £'000 £'000 £'000 £'000
As at 31 July 2006 1,283 33,814 84,944 1,597 121,638
Net return from ordinary activities after taxation - - 14,886 86 14,972
Final dividend for 2006 declared and paid - - - (898) (898)
-------- -------- -------- --------- ---------
As at 31 January 2007 1,283 33,814 99,830 785 135,712
======== ======== ======== ========= =========
Called up Share Other
share premium capital Revenue
capital account reserves reserve Total
For the half year ended 31 January 2006 £'000 £'000 £'000 £'000 £'000
As at 31 July 2005 1,283 33,814 66,037 1,425 102,559
Net return from ordinary activities after taxation - - 15,482 63 15,545
Final dividend for 2005 declared and paid - - - (770) (770)
---------- ---------- ---------- ---------- ----------
As at 31 January 2006 1,283 33,814 81,519 718 117,334
======== ======== ======== ========= =========
Called up Share Other
share premium capital Revenue
capital account reserves reserve Total
For the year ended 31 July 2006 £'000 £'000 £'000 £'000 £'000
As at 31 July 2005 1,283 33,814 66,037 1,425 102,559
Net return from ordinary activities after taxation - - 18,907 1,455 20,362
Final dividend for 2005 declared and paid - - - (770) (770)
Interim dividend for 2006 declared and paid - - - (513) (513)
---------- ---------- ---------- ---------- ----------
As at 31 July 2006 1,283 33,814 84,944 1,597 121,638
======== ======== ======== ========= =========
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2007
Balance Sheet
as at 31 January 2007
(Unaudited) (Unaudited) (Audited)
31 January 31 January 31 July
2007 2006 2006
£'000 £'000 £'000
Fixed asset investments held
at fair value through profit
or loss 136,950 118,212 118,130
---------- ---------- ----------
Current assets
Debtors 335 212 1,264
Cash at bank and short term deposits 1,019 564 3,125
---------- ---------- ----------
1,354 776 4,389
Creditors: amounts falling due
within one year (2,592) (1,654) (881)
---------- ---------- ----------
Net current (liabilities)/assets (1,238) (878) 3,508
---------- ---------- ----------
Total net assets 135,712 117,334 121,638
========== ========== ==========
Capital and reserves
Ordinary called up share capital 1,283 1,283 1,283
Share premium account 33,814 33,814 33,814
Capital reserves:
Realised 59,545 49,019 56,261
Unrealised 40,285 32,500 28,683
Revenue reserve 785 718 1,597
---------- ---------- ----------
Total shareholders' funds 135,712 117,334 121,638
========== ========== ==========
Net asset value per ordinary share (note 3) 528.74p 457.14p 473.91p
========== ========== ==========
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2007
Cash Flow Statement
for the half year ended 31 January 2007
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
31 January 2007 31 January 2006 31 July 2006
£'000 £'000 £'000
Net cash (outflow)/inflow from operating (1,114) (1,126) 67
activities
Servicing of finance (2) (6) (21)
Total tax recovered 120 12 155
Net cash (outflow)/inflow from financial (2,235) (1,346) 336
investment
Equity dividends paid (898) (770) (1,283)
---------- ----------- -----------
Net cash outflow before financing (4,129) (3,236) (746)
Net cash inflow from financing 2,129 - -
---------- ----------- -----------
Decrease in cash (2,000) (3,236) (746)
========== =========== ===========
Reconciliation of operating revenue to net cash
(outflow)/inflow from operating activities
Net return before finance costs and taxation 15,015 15,551 20,649
Capital return before finance costs and taxation (14,888) (15,487) (18,596)
Decrease/(increase) in prepayments and accrued 7 (2) (9)
income
(Decrease)/increase in creditors and accruals (746) (98) (61)
Expenses charged to capital (449) (1,051) (1,523)
Tax on unfranked investment income deducted at
source (53) (39) (393)
---------- ----------- -----------
Net cash (outflow)/inflow from operating
activities (1,114) (1,126) 67
========== =========== ===========
Reconciliation of net cash flow to movements in net debt
Decrease in cash as above (2,000) (3,236) (746)
Cash inflow from increase in debt (2,129) - -
Exchange movements (106) (26) 45
---------- ----------- -----------
Movement in net funds (4,235) (3,262) (701)
Net cash at 1 August 3,125 3,826 3,826
---------- ----------- -----------
Net (debt)/funds at end of the period (1,110) 564 3,125
========== =========== ===========
Represented by:
Cash at bank 1,019 564 3,125
Short term bank loans (2,129) - -
---------- ----------- -----------
(1,110) 564 3,125
========== =========== ===========
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2007
Notes
1. Accounting policies
The accounts have been prepared under the historical cost convention, modified to include the
revaluation of investments and in accordance with applicable Accounting Standards and with the Revised
Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' ('SORP') dated
December 2005.
2. Return per ordinary share
Return per ordinary share is based on the net return attributable to the ordinary shares of £14,972,000
(half year ended 31 January 2006: £15,545,000; year ended 31 July 2006: £20,362,000) and on the
25,667,005 shares in issue throughout all three periods.
Revenue return per ordinary share is based on the net revenue return attributable to the ordinary shares
of £86,000 (half year ended 31 January 2006: £63,000; year ended 31 July 2006: £1,455,000) and on the
25,667,005 shares in issue throughout all three periods.
Capital return per ordinary share is based on net capital gains for the half year ended 31 January 2007
of £14,886,000 (half year ended 31 January 2006: £15,482,000; year ended 31 July 2006: £18,907,000) and
on the 25,667,005 shares in issue throughout all three periods.
3. Net asset value per ordinary share
Net asset value per ordinary share is based on the 25,667,005 ordinary shares in issue.
4. Management and performance fees
Management and performance fees are charged in accordance with the terms of the management agreement.
Performance fees are provided for, based on the out-performance of the Company against the FTSE World
Europe (ex UK) Index. For the half year ended 31 January 2007, there was no provision (half year ended
31 January 2006: £687,000 and year ended 31 July 2006: £736,000). All amounts are inclusive of
irrecoverable VAT.
5. Interim dividend
An interim dividend of 2.00p will be paid on 12 April 2007 to shareholders on the Register of Members on
23 March 2007. The Company's shares will be quoted ex-dividend on 21 March 2007.
6. Comparative information
The figures and financial information for the year ended 31 July 2006 are an extract based on the latest
published accounts and do not constitute statutory accounts for that year. Those accounts 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) or 237(3) of the Companies Act 1985. The
interim accounts have been neither audited nor reviewed by the auditors.
7. Interim report
The interim report will be posted to shareholders in March and will be available from the Registered
Office at 4 Broadgate, London EC2M 2DA thereafter.
- ENDS -
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