Interim Results

JPMorgan Overseas IT PLC 22 February 2008 LONDON STOCK EXCHANGE ANNOUNCEMENT JPMORGAN OVERSEAS INVESTMENT TRUST PLC PRELIMINARY ANNOUNCEMENT OF HALF YEAR RESULTS The Directors of JPMorgan Overseas Investment Trust plc announce the Company's results for the period ended 31st December 2007. Chairman's Statement The Company produced a positive return of 4.3% for shareholders in the six months period ending 31st December 2007. The total return on net assets was 4.7% which compared favourably with the MSCI World Index return of 0.7%. It is pleasing to note that the high conviction investment style that has been adopted by Ed Walker, the Company's investment manager, is clearly beginning to bear fruit. A modest level of borrowings has been used in order to enhance returns. Careful use of tactical gearing can deliver positive investment returns, although caution needs to be applied in turbulent market conditions. The recent turmoil in world stockmarkets has not bypassed the Company of course and the Company's exposure to the USA, albeit underweight, will inevitably have adversely impacted investment returns. The positive side of such downward movement is that it presents opportunities for increasing holdings in preferred stocks at attractive levels. The volatility of the discount at which the Company's shares trade to their net asset value ('NAV') remained low, thanks in large part to the Company's discount control measures which aim to maintain the discount at around 5%. This created the need to buy back around 2.3 million shares for cancellation during the period. Since these shares were bought back at a discount, remaining shareholders enjoyed an enhancement of NAV. It is difficult, in the current climate, to forecast returns in the short term. In the medium to long term, however, I am confident that the Company's portfolio is well positioned to weather the current difficult conditions and benefit strongly from the recovery when it occurs. George Paul Chairman 22nd February 2008 Investment Manager's Report The second half of 2007 has been an unusually eventful period. The MSCI World Index returned 0.7% in sterling terms, but this modestly positive return fails to capture the intense activity over the last 6 months. Markets traded in a range of over 10%, with 2 periods of weakness followed by 2 periods of recovery. Emerging markets continued to perform well, chiefly due to economic growth remaining strong. This contrasted with increasing worries about the sustainability of US growth in the face of the ongoing difficulties in the financial sector, despite cuts in interest rates in the US. These worries spread to Europe, partly due to the ongoing strength of the Euro against the US dollar and the potential negative consequences for Europe's exporters. Emerging markets rose 18%, energy rose 11% and basic material stocks rose 9% on average. Financials stood out on the downside, falling over 10% on average with particularly steep drops in US financials and investment banks. The turmoil in financial markets continues to dominate the agenda with further losses expected from the US housing market as defaults are likely to continue for an extended period. This event has largely been discounted with focus now shifting to effects of a tighter credit environment on economic activity, limiting the availability of credit for both households and corporates. The aggressive move by the US Federal Reserve in January to cut interest rates and the European Central Bank's willingness to extend virtually unlimited liquidity to the Eurozone banking market are encouraging signs that the second round effects of the financial crisis can be minimised. The outlook for economic growth is relatively uncertain given the cross-currents of weakening US growth and lower interest rates. The other key question concerns how the rest of the world, particularly emerging markets will be impacted. The recent sharp pullback in markets at the start of 2008 gives us confidence that equity valuations now price in a marked slowdown in economic activity, and therefore offering several attractive buying opportunities. A protracted and deep recession in the US that slows growth globally remains a risk, but this is not considered a likely outcome. The portfolio is positioned to benefit from more difficult economic conditions, with a focus on large capitalisation companies which generate significant cashflow. At this time the Company is utilising a modest level of gearing reflecting a positive view on markets from this point, which has the potential to rise as individual opportunities appear compelling. Ed Walker Investment Manager 22nd February 2008 Interim Management Report The Company is required to make the following disclosures in its half year report: Principal Risks and Uncertainties The principal risks and uncertainties faced by the Company fall into five broad categories: investment and strategy; accounting, legal and regulatory; corporate governance and shareholder relations; operational; and financial. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 30th June 2007. Related Parties Transactions During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company during the period. Directors' Responsibilities The Board of Directors confirms that, to the best of its knowledge: i) the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with the Accounting Standards Board's Statement 'Half-Yearly Financial Reports'; and ii) the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules. For and on behalf of the Board George Paul Chairman 22nd February 2008 For further information: Philip Jones For and on behalf of JPMorgan Asset Management (UK) Limited - Secretary 020 7742 6000 JPMorgan Overseas Investment Trust plc Unaudited figures for the six months ended 31st December 2007 Income Statement (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2007 31st December 2006 30th June 2007 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains from investments held at fair value through profit or loss - 5,468 5,468 - 9,645 9,645 - 15,433 15,433 Net foreign currency gains/(losses) - 78 78 - - - - (68) (68) Income from 1,424 - 1,424 1,537 - 1,537 4,429 - 4,429 investments Other interest receivable and similar income 39 - 39 58 - 58 156 - 156 _______ _______ _______ _______ ________ _______ _______ _______ _______ Gross return 1,463 5,546 7,009 1,595 9,645 11,240 4,585 15,365 19,950 Management fee (201) (201) (402) (225) (225) (450) (457) (457) (914) Performance fee - (1,166) (1,166) - (734) (734) - 1,287 1,287 Other administrative expenses (214) - (214) (213) - (213) (439) - (439) _______ _______ _______ _______ _______ _______ _______ _______ _______ Net return on ordinary activities before finance costs and taxation 1,048 4,179 5,227 1,157 8,686 9,843 3,689 16,195 19,884 Finance costs (55) (55) (110) (4) (4) (8) (10) (10) (20) _______ _______ _______ _______ _______ _______ _______ _______ _______ Net return on ordinary activities before taxation 993 4,124 5,117 1,153 8,682 9,835 3,679 16,185 19,864 Taxation (122) - (122) (142) - (142) (458) - (458) ______ _______ _______ ______ _______ _______ _______ _______ _______ Net return on ordinary activities after taxation 871 4,124 4,995 1,011 8,682 9,693 3,221 16,185 19,406 ===== ===== ===== ===== ===== ===== ===== ===== ===== Return per share (note 2.96p 14.00p 16.96p 2.93p 25.17p 28.10p 9.69p 48.68p 58.37p 4) All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period. The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information. The 'Total' column represents all the information that is required to be disclosed in a 'Statement of Total Recognised Gains and Losses (STRGL)'. For this reason a STRGL has not been presented. JPMorgan Overseas Investment Trust plc Unaudited figures for the six months ended 31st December 2007 Reconciliation of Movements in Shareholders' Funds Called up Capital Share redemption Capital Revenue capital reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 Six months ended 31st December 2007 (unaudited) At 30th June 2007 7,622 26,323 156,838 16,900 207,683 Shares bought back and cancelled (587) 587 (14,831) - (14,831) Total return from ordinary activities - - 4,124 871 4,995 Dividends appropriated in the period - - - (2,949) (2,949) _______ ________ _______ _______ ________ At 31st December 2007 7,035 26,910 146,131 14,822 194,898 Called up Capital Share redemption Capital Revenue capital reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 Six months ended 31st December 2006 (unaudited) At 30th June 2006 9,064 24,881 175,693 17,941 227,579 Shares bought back and cancelled (737) 737 (17,309) - (17,309) Total return from ordinary activities - - 8,687 1,011 9,698 Dividends appropriated in the period - - - (4,201) (4,201) _______ ________ _______ _______ ________ At 31st December 2006 8,327 25,618 167,071 14,751 215,767 Called up Capital Share redemption Capital Revenue capital reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 Year ended 30th June 2007 (audited) At 30th June 2006 9,064 24,881 175,693 17,941 227,579 Shares bought back and cancelled (1,442) 1,442 (35,040) - (35,040) Total return from ordinary activities - - 16,185 3,221 19,406 Dividends appropriated in the year - - - (4,202) (4,202) _______ ________ _______ _______ ________ At 30th June 2007 7,622 26,323 156,838 16,960 207,743 JPMorgan Overseas Investment Trust plc Unaudited figures for the six months ended 31st December 2007 Balance Sheet (Unaudited) (Unaudited) (Audited) 31st December 2007 31st December 2006 30th June 2007 £'000 £'000 £'000 Fixed assets Investments at fair value through profit or loss 203,512 217,256 208,170 Current assets Debtors 418 2,198 3,067 Cash at bank and in hand 111 59 84 ______ ______ ______ 529 2,257 3,151 Creditors: amounts falling due within one year (7,481) (1,885) (2,962) ______ ______ ______ Net current (liabilities)/assets (6,952) 372 189 Total assets less current liabilities 196,560 217,628 208,359 Creditors: amounts falling due after more than one (200) (200) (200) year Provision for liabilities and charges (1,402) (1,661) (416) ______ ______ ______ Total net assets 194,958 215,767 207,743 ===== ===== ===== Capital and reserves Called up share capital 7,035 8,327 7,622 Capital redemption reserve 26,910 25,618 26,323 Capital reserve 146,131 167,071 156,838 Revenue reserve 14,882 14,751 16,960 ______ ______ ______ Shareholders' funds 194,958 215,767 207,743 ===== ===== ===== Net asset value per share (note 5) 692.8p 647.8p 681.4p Cash Flow Statement (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2007 31st December 2006 30th June 2007 £'000 £'000 £'000 Net cash inflow from operating activities 682 191 2,250 Net cash outflow from returns on investments and servicing of finance (69) (9) (20) Taxation recovered 1 5 8 Net cash inflow from capital expenditure and financial investment 10,603 17,971 33,161 Dividends paid (2,949) (4,201) (4,202) Net cash outflow from financing (8,316) (17,626) (34,788) _______ _______ _______ Decrease in cash for the period (48) (3,669) (3,591) _______ _______ _______ Reconciliation of net cash flow to movement in net funds/ debt Net cash movement (48) (3,669) (3,591) Loans drawn down in the period (7,000) - - Exchange movements 75 (15) (68) _______ _______ _______ Movement in net funds/debt in the period (6,973) (3,684) (3,659) Net (debt)/ funds at the beginning of the period (116) 3,543 3,543 Net debt at the end of the period (7,089) (141) (116) _______ _______ _______ Represented by: Cash at bank and in hand 111 59 84 Debt falling due within one year (7,000) - - Debt falling due after more than five years (200) (200) (200) _______ _______ _______ (7,089) (141) (116) _______ _______ _______ Notes to the Accounts 1. Financial Statements The information contained within the financial statements in this preliminary announcement has not been audited or reviewed by the Company's auditors. The figures and financial information for the year ended 30th June 2007 are extracted from the latest published accounts of the Company 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. 2. Accounting Policies The accounts have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' dated 31st December 2005. All of the Company's operations are of a continuing nature. The accounting policies applied in these interim accounts are consistent with those applied in the accounts for the year ended 30th June 2007. 3. Taxation The taxation charge of £121,000 (31st December 2006: £142,000 and 30th June 2007: £458,000) relates to irrecoverable overseas taxation. 4. Return per share (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2007 31st December 2006 30th June 2007 £'000 £'000 £'000 Return per share is based on the following: Revenue return 871 1,011 3,221 Capital return 4,124 8,682 16,185 Total return 4,995 9,693 19,406 Weighted average number of shares in issue 29,443,813 34,497,563 33,247,679 Revenue return per share 2.96p 2.93p 9.69p Capital return per share 14.00p 25.17p 48.68p Total return per share 16.96p 28.10p 58.37p 5. Net asset value per share Net asset value per share is calculated by dividing the funds attributable to ordinary shareholders by the number of ordinary shares in issue at 31st December 2007 of 28,140,948 (31st December 2006: 33,307,448 and 30th June 2007: 30,489,448). 6. Reconciliation of total return on ordinary activities before finance costs and taxation to net cash inflow from operating activities. (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31st December 2007 31st December 2006 30th June 2007 £'000 £'000 £'000 Total return on ordinary activities before finance costs and taxation 5,227 9,843 19,884 Less capital return before finance costs and taxation (4,179) (8,686) (16,195) Net movement in debtors and accruals (32) 13 174 Tax on unfranked investment income (133) (144) (546) Expenses charged to capital (201) (225) (457) Performance fee paid including VAT - (610) (610) Net cash inflow from operating activities 682 191 2,250 22nd February 2008 JPMORGAN ASSET MANAGEMENT (UK) LIMITED This information is provided by RNS The company news service from the London Stock Exchange

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