Interim Management Statement

RNS Number : 0926K

Herald Investment Trust PLC

13 April 2010

 

HERALD INVESTMENT TRUST plc

Interim Management Statement - 3 months to 31 March 2010

Herald's objective is to achieve capital appreciation through investments in smaller quoted companies, in the areas of telecommunications, multimedia and technology (TMT).  Investments may be made across the world.  The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies.

Review of the Period

·	Over the period, the Company's net asset value total return was 8.6% compared to a benchmark total return of 10.5%, while the share price total return was 9.5%.
·	A dividend of 0.30p per share is proposed and subject to approval at the Annual General Meeting on 21 April 2010.  The dividend will be paid on 29 April 2010.
·	In the three months to 31 March 2010, the Company made net sales totalling £12 million.
·	During the quarter, the Company bought back 230,000 of its own shares for cancellation at a cost of £796,000.
·	At the end of March 2010, £50 million had been drawn under the £75 million multi-currency facility. The fair value of the liabilities in respect of the related interest rate swap contract at 31 March 2010 was a liability of £7.7 million which was based on the marked to market value.
Geographic Analysis of Total Assets					Top Ten Equity Holdings
Name		% of total assets at 31/03/10	% of total assets at 31/12/09		Name	% of total assets at 31/03/10
UK		58.1	61.7		Imagination Technologies Group	4.7
Americas		25.0	23.6		SDL	4.1
Asia Pacific		7.0	7.3		StatPro Group	2.0
Continental Europe		2.9	2.9		Telecom Plus	1.9
Emerging Markets		0.4	0.3		Phoenix IT Group	1.9
Net Liquid Assets		6.6	4.2		Group NBT	1.8
					Advent Software	1.7
					Euromoney Institutional Investor	1.6
					Websense	1.6
					Alterian	1.4
Total		100.0	100.0		Total	22.7

Performance

	%
Capital	3 Months	1 Year	3 Years	5 Years
Share Price†	9.5	85.5	(7.0)	9.6
NAV†	8.6	74.8	0.9	18.8
Benchmark*	10.1	66.7	(8.6)	29.9
Total Return
Share Price†	9.5	90.2	(4.2)	13.1
NAV†	8.6	78.0	3.2	21.6
Benchmark*	10.5	69.8	(3.9)	40.9

^†   Source: Thomson Financial Datastream

* Source: HSBC.  The benchmark was changed on 1 January 2006 from 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) to 2/3 Hoare Govett Smaller Companies Index plus AIM (capital gains ex. Investment companies) and 1/3 Russell 2000 (small cap) Technology Index (in sterling terms).  

Past performance is not a guide to future performance

General Information
	31/03/10	31/12/09
Equities:
UK	£228.3m	£225.1m
Overseas	£143.7m	£129.4m
	£372.0m	£354.5m
Government bonds	£21.4m	£20.9m
Corporate bonds	£5.3m	£5.1m
Net liquid assets	£28.3m	£16.7m
Bank loans	(£50.0m)	(£50.0m)
Derivative financial instruments	(£7.7m)	(£6.3m)
Shareholders' funds	£369.3m	£340.9m
Net asset value per ordinary share (including current year income)	456.9p	420.6p
Net asset value per ordinary share (excluding current year income)	456.2p	420.2p
Share price	370.0p	337.8p
Discount	19.0%	19.7%
Actual gearing ratio*	102	105
Potential gearing ratio†	116	117
Net (borrowings)/(swap)/cash as a % of shareholders' funds	(8.0%)	(11.1%)

Unless stated otherwise, the above figures have been calculated using the AIC cum income basis (includes current financial year retained income).

^* Total assets (including all debt used for investment purposes) less all cash and fixed interest securities (excluding convertibles and corporate bonds) divided by shareholders' funds.

^† Total assets (including all debt used for investment purposes) divided by shareholders' funds.

The Company's Net Asset Value is calculated daily and can be viewed on the London Stock Exchange website at www.londonstockexchange.com

The Share Price is published daily in the Financial Times.

The interim management statement is available on the Company's website www.heralduk.com

For further information contact: Katie Potts on 020 7553 6300

 

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