Final Results

Herald Investment Trust PLC 22 February 2001 PRELIMINARY STOCK EXCHANGE ANNOUNCEMENT HERALD INVESTMENT TRUST plc Results for the year to 31 December 2000 22 February 2001 BOARD STATEMENT This is Herald Investment Trust's seventh statement, and in a disappointing and difficult year the fund delivered a creditable performance. Diluted net asset value per share has only declined by 12.7% during the year, although this was alleviated, in share price terms, to a lesser decline of 3.9%, reflecting an increase in the share price premium to assets. In contrast the most relevant index, the Hoare Govett Smaller Companies Index, declined 2.2%. In comparison, in 1999 the Trust outperformed this benchmark by 93.3%, and has cumulatively outperformed by nearly 300%. The 2000 decline reflected the hangover following a period of wild speculative froth in certain stocks within our chosen remit. On balance we were lucky to use that bubble as an opportunity to realise some supernormal profits on valuations that fundamentals did not justify. The market is becoming much more rational. The US index, which is most relevant to our US portfolio, is the Russell 2000 Technology Index, which fell 40.4%, albeit only 35.8% in £ terms. Overall we are only 0.7% behind our hybrid benchmark index (2/3 Hoare Govett Smaller Companies Index (extended capital gains ex. investment companies and 1/3 Russell 2000 (small cap) Technology Index (in sterling terms)). The dividend of 0.85p per share is maintained on slightly improved profits. We have continued with our policy of expensing all costs, and not charging any fees to capital. For long periods of the year the Trust achieved the distinction of being the best performing Trust over 5 years in published performance tables. The Trust no longer features in these tables because the AITC thought it was inappropriate to be classified as a UK smaller companies Investment Trust. About 60% of the equities held are UK small companies, and there remains a stronger overlap in stock terms with these funds than the global technology funds with which we are sometimes compared. This is evidenced by a much stronger performance than any of the technology indices (techMARK -32.2%, FTSE IT Index -44.3%, NASDAQ -39.3%). We remain of the view that we are primarily a UK smaller companies Investment Trust, albeit only investing in a subset of that remit. We believe that there are still opportunities to perform in our defined remit. Some tangible problems remain but we continue to believe there are opportunities to invest in solid growing businesses - many more now than a year ago. Martin Boase Chairman 21 February 2001 Statistics and Performance Report At 31 31 Capital Capital inception December December Performance Performance 16 1999 2000 since 31 since February December inception 1994 1999 (%) (%) Basic NAV 98.7p* 517.4p 447.5p -13.5 +353.4 Diluted NAV 98.7p* 494.2p 431.4p -12.7 +337.1 (FRS14) Fully diluted 98.7p* 494.4p 432.0p -12.6 +337.7 NAV FTSE 100 3,417.7 6,930.2 6,223.2 -10.2 +82.1 FTSE All-share 1,717.8 3,242.1 2,983.8 -8.0 +73.7 FTSE Small cap 2,076.1 3,097.8 3,183.3 +2.8 +53.3 HGSC (ext. 1,750.0 2,762.9 2,702.2 -2.2 +54.4 cap gains ex investment co's) Share price 90.9p 511.0p 491.0p -3.9 +440.2 Warrant price 45.5p 411.0p 382.5p -6.9 +740.7 Premium to diluted NAV (FRS14) per share as at 31 December 2000 13.8% Number of Equity Holdings at 31 December 2000 249 * 100p is shareholders' subscription price before launch costs of 1.3p - ends - For further information please contact: Ms Katie Potts, Manager Herald Investment Trust plc 020 7553 6300 Baillie Gifford & Co. Secretaries 0131 222 4000 HERALD INVESTMENT TRUST plc The following is the unaudited preliminary statement for the year to 31 December 2000 which was approved by the Board on 21 February 2001. The Directors of Herald Investment Trust plc are recommending to the Annual General Meeting of the Company to be held on 18 April 2001 the payment of a final dividend of 0.85p net (0.85p net last year) per ordinary share for the year ended 31 December 2000. STATEMENT OF TOTAL RETURN (unaudited and incorporating the revenue account*) For the year ended For the year ended 31 December 2000 31 December 1999 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 (restated)+ £'000 (restated)+ £'000 £'000 (Losses)/gains - (55,069) (55,069) - 258,619 258,619 on investments Unrealised - 110 110 - (343) (343) gain/(loss) on loan Currency - 79 79 - (53) (53) gains/(losses) Income (note 1) 6,508 - 6,508 3,658 - 3,658 Investment (5,230) - (5,230) (2,580) - (2,580) management fee Other (390) - (390) (276) - (276) administrative expenses Net return 888 (54,880) (53,992) 802 258,223 259,025 before finance costs and taxation Finance (84) - (84) (74) - (74) costs of borrowings Return on 804 (54,880) (54,076) 728 258,223 258,951 ordinary activities before taxation Tax on (26) - (26) (11) - (11) ordinary activities Return on 778 (54,880) (54,102) 717 258,223 258,940 ordinary activities after taxation Ordinary (713) - (713) (705) - (705) dividend payable (note 2) Transfer 65 (54,880) (54,815) 12 258,223 258,235 to/(from) reserves Return per Ordinary share (note 3) Basic 0.93p (65.67p) (64.74p) 0.86p 311.33p 312.19p Diluted 0.89p (63.03p) (62.14p) 0.83p 300.53p 301.36p Dividend per 0.85p 0.85p Ordinary share * The revenue column of this statement is the revenue account of the Company. All revenue and capital items in the above statement derive from continuing operations. +Restated to comply with FRS16 'Current Tax'. HERALD INVESTMENT TRUST plc SUMMARISED BALANCE SHEET at 31 December 2000 (unaudited) 31 December 2000 31 December 1999 £'000 £'000 NET ASSETS Investments at market value 365,575 405,301 Net liquid assets 13,032 27,319 Total assets (before deduction of 378,607 432,620 bank loan) Bank loan (note 4) (3,233) (3,343) 375,374 429,277 CAPITAL AND RESERVES Called-up share capital 20,968 20,740 Capital reserves 352,694 406,890 Revenue reserve 1,712 1,647 EQUITY SHAREHOLDERS' FUNDS 375,374 429,277 Net asset value per ordinary share (note 5) Basic 447.55p 517.44p Diluted (FRS14) 431.43p 494.22p Fully diluted 431.98p 494.40p Ordinary shares in issue 83,873,599 82,961,686 DISTRIBUTION OF ASSETS at 31 December 2000 (unaudited) 31 December 2000 31 December 1999 % % Equities: United Kingdom 55.7 62.9 Continental Europe 7.2 6.8 Americas 16.6 16.1 Japan 0.6 0.3 Asia Pacific 4.5 6.7 84.6 92.8 UK bonds 12.0 0.9 Net liquid assets 3.4 6.3 Total assets (before deduction of 100.0 100.0 bank loan) HERALD INVESTMENT TRUST plc SUMMARISED CASH FLOW STATEMENT (unaudited) Year to Year to 31 December 2000 31 December 1999 £'000 £'000 £'000 £'000 NET CASH INFLOW FROM 348 1,013 OPERATING ACTIVITIES NET CASH OUTFLOW (83) (36) FROM SERVICING OF FINANCE TOTAL TAX RECOVERED - 66 FINANCIAL INVESTMENT Purchase of (212,244) (69,001) investments Sale of investments 196,392 87,198 Currency movement 79 (53) NET CASH (15,773) 18,144 (OUTFLOW)/INFLOW FROM FINANCIAL INVESTMENT EQUITY DIVIDEND PAID (705) (746) NET CASH (16,213) 18,441 (OUTFLOW)/INFLOW BEFORE USE OF LIQUID RESOURCES AND FINANCING MANAGEMENT OF LIQUID RESOURCES Increase in term (4,000) - deposits FINANCING Issue of Ordinary 912 60 shares Currency loan - 3,000 NET CASH INFLOW FROM 912 3,060 FINANCING (DECREASE)/INCREASE (19,301) 21,501 IN CASH RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS (Decrease)/increase (19,301) 21,501 in cash in period Increase in short 4,000 - term investments Increase in bank loan - (3,000) Exchange movement 110 (343) MOVEMENT IN NET (15,191) 18,158 FUNDS IN PERIOD NET FUNDS AT 1 24,188 6,030 JANUARY 2000 NET FUNDS AT 31 8,997 24,188 DECEMBER 2000 HERALD INVESTMENT TRUST plc NOTES 31 December 2000 31 December 1999 £'000 £'000 1. Income Income from investments and interest receivable 6,462 3,636 Other income 46 22 2. The interim dividend will be paid on 20 April 2001 to all shareholders on the register at the close of business on 23 March 2001. 3. Return per ordinary share Revenue return 778 717 Capital return (54,880) 258,223 The basic return per ordinary share is based on the above totals of revenue and capital and on 83,571,294 ordinary shares (1999 - 82,941,828) being the weighted average number of ordinary shares in issue during the year. The diluted returns per ordinary share are calculated on the above totals of revenue and capital and the weighted average number of warrants in issue during the year adjusted by the difference between the average price of the ordinary shares during the year and the subscription price of 100p, giving a weighted average of 87,065,313 (1999 - 85,921,489) shares. 4. A five year loan was arranged with The Royal Bank of Scotland plc in 1999. The loan expires on 7 January 2004. At 31 December 2000 and 1999 there were outstanding drawings of yen 551,550,000. 5. Net asset value per ordinary share is based on net assets of £375,374,000 (1999 - £429,277,000) and 83,873,599 (1999 - 82,961,686) ordinary shares, being the number of ordinary shares in issue at each date. The diluted net asset per ordinary share, calculated in accordance with Financial Reporting Standard 14 (FRS 14) is 431.43p (1999 - 494.22p). This is based on net assets of £375,374,000 (1999 - £429,277,000) and on 87,006,178 (1999 - 86,859,078) ordinary shares, being the number of ordinary shares in issue at the year end plus the notional number of ordinary shares that would have been issued for no consideration using a year end share price of 491.0p (1999 - 511.0p). The fully diluted net asset value per ordinary share has been calculated on the assumption that the warrants in issue were fully exercised at the year end at 100p each resulting in net assets of £379,308,000 (1999 - £434,123,000) and 87,807,349 (1999 - 87,807,349) ordinary shares in issue. During the year 911,913 warrants were exercised at 100p. The number of outstanding warrants at 31 December 2000 was 3,933,750 (1999 - 4,845,663). 6. At the Annual General Meeting held in April 2000 the Company was granted authority to purchase up to 12,435,956 ordinary shares (equivalent to 14.99% of its then issued share capital). No Ordinary shares were bought back during the year and therefore at 31 December 2000 the Company's authority to buy back shares remained unchanged at 12,435,956. HERALD INVESTMENT TRUST plc NOTES (Ctd) 7. Change in Accounting Policy The financial statements for the year to 31 December 2000 have been prepared on the basis of the accounting policies set out in the Company's financial statements at 31 December 1999, except for the adoption of FRS16 'Current Tax'. The change introduced by FRS16 accounting for UK dividend income net of tax has been reflected in the 2000 financial statements with corresponding changes to the comparative figures. In the year to 31 December 2000 this reduced gross income and taxation equally by £209,000 (1999 - £244,000); the net effect has no impact on the revenue return attributable to equity shareholders. 8. The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 December 2000. The financial information for 1999, is derived from the statutory accounts for 1999 which have been delivered to the Registrar of Companies. The Auditors have reported on the 1999 accounts, their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2000 will be finalised on the basis of the financial information presented in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

Companies

Herald Investment Trust (HRI)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today