Interim Results

Henderson Smaller Cos Inv Tst PLC 21 January 2005 HENDERSON GLOBAL INVESTORS THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC 21 January 2005 THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 Highlights Strong performance: • Net asset value per share up 15.8%* • Share price up 18.3%* • Benchmark index up 10.0%* * Total return for the half year ended 30 November 2004 (source: Datastream) The Chairman's Statement: I am pleased to report excellent results for the half year ended 30 November 2004. The net asset value total return per share was 15.8% whereas the equivalent return from our benchmark index was 10.0%. Our fixed borrowings, together with judicious short term use of our bank facility, have been helpful to us during the period. Nevertheless, the main contribution to our performance continues to be the disciplined and diligent approach of our fund management team at Henderson, Neil Hermon and Theresa Wat. Our portfolio enjoyed strong gains in the period, aided by strong stock selection in a generally buoyant UK equity market. Small companies have performed well, marginally outperforming large ones in the period. There has been a high level of corporate activity, a reflection of rising corporate confidence and significant interest from the private equity community in acquiring quoted UK assets. The structure of the portfolio remains largely as outlined in the annual report, with our fund managers investing in attractive growth companies at reasonable prices. The outlook is favourable, even after eighteen months of strong gains from UK smaller companies, although returns are expected to be less spectacular than in the recent past as input cost inflation, currency fluctuations and a less buoyant consumer depress corporate earnings growth. However, valuations are still reasonable, global economies are robust and ongoing high levels of corporate activity support the prospect of positive total returns. During the half year we bought back for cancellation some six million of the Company's shares, of which two million were bought back in the month following the Annual General Meeting. - MORE - - 2 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 Chairman's Statement cont/d... The Company's first triennial continuation vote was passed at the Annual General Meeting on 24 September 2004. The proxy votes received were 3.7 to 1 in favour. This clear majority indicates that our investors share the Board's confidence in the ability of our fund managers to achieve strong investment performance from the active management of the Company's portfolio of investments in UK- listed smaller companies. J Dudley Fishburn Chairman 21 January 2005 - MORE - - 3 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 Group Statement of Total Return (incorporating the revenue account)+ for the half year ended 30 November 2004 Half year ended Half year ended Year ended 30 November 2004 30 November 2003 31 May 2004 (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from investments - 26,632 26,632 - 39,552 39,552 - 57,939 57,939 Income 2,422 - 2,422 1,956 - 1,956 4,732 - 4,732 from fixed asset investments Other interest receivable and similar income 114 - 114 87 - 87 110 - 110 ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Gross revenue 2,536 26,632 29,168 2,043 39,552 41,595 4,842 57,939 62,781 and capital gains Management (540) - (540) (397) - (397) (893) - (893) fee Other (170) - (170) (196) - (196) (334) - (334) administrative expenses ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Net return on ordinary activities before interest payable and 1,826 26,632 28,458 1,450 39,552 41,002 3,615 57,939 61,554 taxation Interest (1,270) - (1,270) (1,069) - (1,069) (2,244) - (2,244) payable ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Net return on ordinary activities 556 26,632 27,188 381 39,552 39,933 1,371 57,939 59,310 before taxation Taxation on net return on ordinary activities - - - - - - - - - ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Net return on ordinary activities 556 26,632 27,188 381 39,552 39,933 1,371 57,939 59,310 after taxation Final 42 - 42 - - - (1,148) - (1,148) dividend: 1.0p (note 5) ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Transfer 598 26,632 27,230 381 39,552 39,933 223 57,939 58,162 to reserves ======= ======= ======= ======= ======= ======= ======= ======= ======= Return per 0.51p 24.20p 24.71p 0.33p 33.82p 34.15p 1.17p 49.65p 50.82p ordinary share (note 1) ======= ======= ======= ======= ======= ======= ======= ======= ======= + The revenue columns of this statement represent the consolidated revenue accounts of the Group (see note 3). - MORE - - 4 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 Group Balance Sheet at 30 November 2004 30 November 2004 30 November 2003 31 May 2004 (audited) £'000 £'000 £'000 Fixed asset investments Listed investments at market value 216,966 193,753 209,469 AIM investments at market value 23,949 12,187 16,876 Unquoted investments at directors' valuation 324 572 324 ---------- ---------- ---------- 241,239 206,512 226,669 ---------- ---------- ---------- Current assets Debtors 1,498 603 1,406 Cash at bank and short term deposits 1,254 269 488 ---------- ---------- ---------- 2,752 872 1,894 Creditors : amounts falling due within one year (8,491) (4,961) (11,020) ---------- ---------- ---------- Net current liabilities (5,739) (4,089) (9,126) ---------- ---------- ---------- Total assets less current 235,500 202,423 217,543 liabilities Creditors: amounts falling due after more than one year (20,000) (20,000) (20,000) ---------- ---------- ---------- Total net assets 215,500 182,423 197,543 ---------- ---------- ---------- Capital and reserves Called-up share capital (note 4) 27,107 29,248 28,700 Capital redemption reserve 18,318 - 16,725 Other capital reserves 165,763 149,303 148,404 Revenue reserve 4,312 3,872 3,714 ---------- ---------- ---------- Shareholders' funds (including non- equity interests of £9,000; 2003: £9,000) 215,500 182,423 197,543 ====== ====== ====== Net asset value per ordinary share (note 2) 198.8p 156.0p 172.1p ====== ====== ====== - MORE - - 5 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 Group Cash Flow Statement for the half year ended 30 November 2004 Year ended Half year ended Half year ended 31 May 2004 30 November 2004 30 November 2003 (audited) £'000 £'000 £'000 Net cash inflow from operating activities 2,665 1,918 3,256 Net cash outflow from servicing of finance (2,321) (1,051) (2,257) Net cash inflow/(outflow) from financial investment 12,301 (5,332) (7,036) Equity dividends paid (1,106) (585) (585) ---------- ---------- ---------- Net cash inflow/(outflow) before financing 11,539 (5,050) (6,622) Net cash (outflow)/inflow from financing (10,773) 2,600 4,391 ---------- ---------- ---------- Increase/(decrease) in cash 766 (2,450) (2,231) ====== ====== ====== Reconciliation of net revenue return to net cash inflow from operating activities Net revenue before interest payable and taxation 1,826 1,450 3,615 Decrease/(increase) in prepayments and accrued 759 548 (231) income Decrease in debtors - 10 - Increase/(decrease) in creditors 80 (90) (43) Stock dividends included in investment income - - (85) ---------- ---------- ---------- Net cash inflow from operating activities 2,665 1,918 3,256 ====== ====== ====== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 766 (2,450) (2,231) Cash outflow/(inflow) from debt financing 1,500 (2,600) (7,500) ---------- ---------- ---------- Change in net debt resulting from cash flows 2,266 (5,050) (9,731) Net debt at the beginning of the period (27,012) (17,281) (17,281) ---------- ---------- ---------- Net debt at the end of the period (24,746) (22,331) (27,012) ====== ====== ====== Represented by: Cash at bank and short term deposits 1,254 269 488 Debt falling due within one year (6,000) (2,600) (7,500) Debt falling due after more than one year (20,000) (20,000) (20,000) ---------- ---------- ---------- (24,746) (22,331) (27,012) ====== ====== ====== - MORE - - 6 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 Notes 1. Return per ordinary share The revenue return per ordinary share is based on the earnings attributable to the ordinary shares of £556,000 (half year ended 30 November 2003: £381,000; year ended 31 May 2004: £1,371,000) and on the weighted average number of ordinary shares in issue during the half year of 110,044,125 (half year ended 30 November 2003: 116,956,840; year ended 31 May 2004: 116,695,187). The capital return per ordinary share is based on the net capital gains for the half year of £26,632,000 (half year ended 30 November 2003: £39,552,000; year ended 31 May 2004: £57,939,000) and on the weighted average number of ordinary shares in issue during the half year of 110,044,125 (half year ended 30 November 2003: 116,956,840; year ended 31 May 2004: 116,695,187). 2. Net asset value per ordinary share The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £215,491,000 (30 November 2003: £182,414,000; 31 May 2004: £197,534,000) and on the 108,391,840 ordinary shares in issue (30 November 2003: 116,956,840; 31 May 2004: 114,761,840). 3. Basis of consolidation The Group accounts consolidate the accounts of the Company and of its wholly owned subsidiary undertaking, Henderson Smaller Companies Finance Limited. 4. Share buy-backs During the half year the Company bought back for cancellation 6,370,000 ordinary shares (half year ended 30 November 2003: nil; year ended 31 May 2004: 2,195,000). 5. Dividends No interim dividend has been declared (2003: nil). The final dividend accrued in respect of the year ended 31 May 2004 at 1.0p per ordinary share amounted to £1,148,000. The buy-backs of the Company's ordinary shares, after 31 May 2004 but before the record date of the final dividend for the year ended on that date, resulted in a write-back of £42,000 for dividends accrued in respect of the year ended 31 May 2004 but not in the event payable. 6. Accounts for the year ended 31 May 2004 The figures and financial information for the year ended 31 May 2004 are an extract from the latest published accounts of the Group and do not constitute the 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. 7. Interim report The full interim report will be posted to shareholders in February 2004 and copies will be available thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. - MORE - - 7 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 Largest Investments The 60 largest investments at 30 November 2004 were as follows: Valuation at Valuation at 30 November 2004 30 November 2004 £'000 £'000 T & F Informa 11,020 Mouchel 2,313 W S Atkins 9,679 Pillar Property 2,168 Games Workshop 6,868 Laird 2,099 Domino Printing Sciences 6,493 Domnick Hunter 2,093 Balfour Beatty 6,482 FKI 2,058 Interserve 5,976 *Local Radio 2,007 Bellway 5,304 Erinaceous 1,991 Cairn Energy 5,175 First Technology 1,988 NHP 4,883 Paragon 1,971 Meggitt 4,663 VT Group 1,924 Westbury 4,405 Savills 1,922 Topps Tiles 4,104 Woolworths 1,914 WSP Group 3,918 BSS Group 1,892 Bovis Homes 3,830 Shaftesbury 1,885 Enodis 3,367 *First Calgary Petroleums 1,850 ITNET 3,358 Kidde 1,824 Capital & Regional 3,342 Forth Ports 1,789 Grainger Trust 3,283 royalblue 1,783 Go-Ahead 3,169 Rotork 1,680 Scottish Radio 2,998 *Enterprise 1,624 Clinton Cards 2,753 Premier Oil 1,624 Carillion 2,712 Ulster Television 1,607 RPS Group 2,700 Glotel 1,575 ICM Computer 2,663 Ultra Electronic 1,570 Greene King 2,627 Ricardo 1,555 SIG 2,615 Tribal 1,549 Intermediate Capital 2,613 Greggs 1,531 Intec Telecom Systems 2,522 Halford 1,530 Chrysalis 2,504 *Urban Dining 1,507 Headlam 2,367 *Sportingbet 1,506 * listed on the Alternative Investment Market These investments total £182,722,000 or 75.72% of the portfolio. - ENDS - - 8 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2004 For further information please contact: Neil Hermon The Henderson Smaller Companies Investment Trust plc Telephone: 020 7818 4351 or Theresa Wat The Henderson Smaller Companies Investment Trust plc Telephone: 020 7818 4644 or James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: 020 7818 3349 or Vicki Staveacre Press Office Henderson Global Investors Telephone: 020 7818 4222 This information is provided by RNS The company news service from the London Stock Exchange ILFVDLFILFIE

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