Final Results

RNS Number : 5194O

JPMorgan Mid Cap Invest Trust PLC

19 September 2011

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN MID CAP INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30TH JUNE 2011

Chairman's Statement

Investment Performance

Following a strong performance in 2010, UK equities faced significant headwinds in the first half of 2011 from persistent Eurozone sovereign debt problems, weak domestic economic data and rising inflation. Geopolitical concerns further added to the pressure on equities as turmoil in the Middle East and North Africa pushed up the oil price and a devastating earthquake in Japan further complicated the global economic outlook. Despite this turbulent backdrop, the FTSE 250 Index rose by 6.3% in the second half of the Company's financial year, resulting in an impressive benchmark total return of 32.1% for the full year to 30th June 2011.

As was the case for 2010, I am pleased to be able to report to you a significant positive return for shareholders. After taking account of the rise in share price, the dividend for the year and a narrowing of the discount to NAV, the total return to shareholders was 30.0%. The total return on net assets was 28.0%. The net asset return was reduced by the decision to maintain the final dividend, which will necessitate a £1.3million drawdown on the revenue reserve, thus reducing the total return by 1.3%. Therefore a meaningful measure of investment performance is the

figure of 29.3% which was the total return on net assets prior to the drawdown on revenue reserves to meet this year's proposed final dividend.

Performance against the benchmark continues to be somewhat disappointing with stock selection representing the biggest detraction from performance. When completing its annual review of the Manager, investment performance is clearly the Board's main area of focus. The Board is continuing to review the appropriate structure of the portfolio particularly in a period of greater macro volatility. The Board regularly discusses the portfolio's investment strategy with the Manager and believes that the individuals managing the portfolio are well placed to produce an improvement in relative performance and I have confidence that over time this will

be achieved. The Board therefore believes that JPMAM should remain as the Company's Investment Manager and that its ongoing appointment remains in the interests of shareholders.

Revenue and Dividends

Earnings per share for the year to 30th June 2011 were 11.81 pence per share, marginally below the 11.94 pence earned in 2010. At the beginning of the review period the Managers anticipated that earnings for 2011 would be higher than those generated in 2010. However, correctly anticipating falling markets, our Managers reduced the level of the Company's gearing in 2011 and so preserved capital. However, since the Company's revenue derives almost entirely from dividends paid by companies in which we have holdings, the reduction in gearing led to a consequent reduction in income. Moreover, the Company also suffered from the reduction of the Cable & Wireless Worldwide dividend. Despite the small reduction in earnings this year and after careful consideration, the Board has decided to utilise again some of the Company's revenue reserves and proposes to pay a maintained final dividend of 11.50p per share (2010: 11.50p) making a total of 17.00p (2010: 17.00p). The payment of this dividend will require a transfer of £1,289,000 from revenue reserves. After the transfer, the revenue reserve will amount to £2.4million. The dividend is payable on 7th November 2011 to shareholders on the register at the close of business on 30th September 2011.

The Board is acutely aware of the importance of income to shareholders and it remains our aspiration to maintain the total dividend. While the Company does have significant revenue reserves, these are clearly finite. It is pleasing that the Company's expenses continue to be relatively low in comparison to the rest of the investment trust industry. The Company's total expense ratio is only 0.72%, down from 0.74% in 2010. 30% of the Company's management fees and finance costs are allocated to revenue in the Income Statement and will continue to be monitored closely by the Board.

Our Investment Managers believe that the Company's earnings in 2012 will be higher as many companies listed in the UK are now in a better position to increase dividend distributions, having taken steps since 2008/9 to strengthen their balance sheets. Clearly, if the Company's earnings fail to grow significantly to cover a maintained dividend in future years, the Board's aspiration is unsustainable. The Board will closely monitor the revenue estimate over the coming months and a further update on the revenue position for 2012 will be given in the Company's half year report for the six months to 31st December 2011.

Gearing

The use of gearing over the last year has added 0.4% to the overall return and the Board continues to believe in the benefits of gearing over the long term. The Board of Directors sets the overall gearing guidelines and reviews these at each meeting; changes in these guidelines between meetings may be undertaken after consultation with the Board. To give the Manager greater flexibility in managing the gearing, the Board has resolved to increase the Company's maximum gearing range from 95%-120% to 95%-125%. At the year end gearing was 106% and at the time of writing it is 103%. However, the portfolio's position in Northumbrian Water is effectively cash given that this company is the subject of an agreed bid, hence a more meaningful

gearing figure at the time of writing is 99%.

Borrowing Facilities and Debenture

The Company has recently replaced its expiring £10 million loan facility with two £5million loan facilities with ING Bank, one expiring in 2012 and one expiring in 2014. The Company also has a £9.5 million debenture, redeemable at par in 2016 or at the option of the Company after 1st December 2011. Once it has clarity on the availability of future finance options, the Board will decide in October 2011 whether it is in the Company's best interests to redeem the debenture at the first opportunity on 2nd December 2011. If the Board decides to redeem at the earliest opportunity, formal notice to this effect will be despatched to stockholders.

Discount Management and Treasury Shares

It is the present intention of the Board to continue its policy of buying back shares, whether for cancellation or into Treasury, to assist in reducing the volatility of the discount and enhance the net asset value per share. This policy will be reviewed regularly in the light of market conditions including the levels of discounts in the wider investment trust sector. The Company will only re-issue shares from Treasury at a premium to NAV. During the year under review, the Company repurchased into Treasury 130,000 shares, representing 0.5% of the issued share capital at the start of the year. Since 30th June 2011, the Company has bought back a further 85,000 shares. The Company will continue to buy shares into Treasury up to a maximum of 5.0% of issued share capital. Shares bought back in excess of this level will be cancelled.

Whilst the Company has not repurchased any shares for cancellation over the course of the year, the Directors continue to believe that this mechanism is of benefit to shareholders and therefore propose and recommend that powers to repurchase up to 14.99% of the Company's shares for cancellation be renewed for a further period.

Board of Directors

The Board has procedures in place to ensure that the Company complies fully with the AIC Code on Corporate Governance and the new UK Code on Corporate Governance, which applies for the first time to companies with financial years commencing on or after 29th June 2010.

In accordance with the Company's Articles of Association, the Directors retiring by rotation and seeking re-election at this year's Annual General Meeting are Michael Hughes and Margaret Littlejohns. John Emly also retires on grounds of tenure (having served as a Director for more than nine years) and seeks re-election. The Nomination and Remuneration Committee has met to consider the attributes and contributions of the individuals concerned and, following this review, the Board strongly recommends their re-election at the forthcoming Annual General Meeting.

Annual General Meeting

This year's Annual General Meeting will be held on Thursday 3rd November 2011 at 2.30 p.m. at 20 Moorgate, London, EC2R 6DA. As in previous years, in addition to the formal part of the meeting, there will be a presentation from the Investment Managers who will answer questions on the portfolio and performance. There will also be an opportunity to meet the Board, the Investment Managers and representatives of JPMAM after the meeting. I look forward to welcoming as many of you as possible to this meeting.

If you have any detailed or technical questions, it would be helpful if you could raise these in advance of the meeting with the Company Secretary at Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ. Shareholders who are unable to attend the AGM are encouraged to use their proxy votes.

Prospects

In August we were reminded that the UK stock market is not immune to the fallout from economic events in other parts of the world. It is clear that the problems which emerged from the financial crisis of 2008/9 are far from being resolved and the economic recovery is likely to be slow. Our benchmark index has fallen sharply since our year end as investors reacted to the continuing Eurozone sovereign debt crisis and downgrade to growth expectations globally. While markets worldwide are likely to continue to be volatile, UK equity valuations remain conservative. Earnings growth expectations, while moderating, remain positive. Against this background our investment managers sound a somewhat cautious note, whilst continuing to pick individual companies that they believe have solid fundamentals and growth prospects.

Andrew Barker

Chairman                                                                                                                    

19th September 2011

Investment Managers' Report

Performance and Market Background

The Company enjoyed strong performance over the 12 months with a portfolio return, net of fees and expenses, of 29.3%. It was however disappointing that this was less than the return of the Company's benchmark, the FTSE 250 excluding investment trusts, which rose by 32.1% over the year under review. The utilisation of some of the Company's revenue reserves in order to pay the proposed final dividend detracted a further 1.3% from net asset value and resulted in a return on net assets of 28.0% for the financial year. The discount of the Company's shares to the net asset value narrowed over the year providing shareholders with a total return of 30.0%.

The mid cap market enjoyed another strong year posting a return of 32.1% over the 12 months to the end of June. The majority of the gain came in the first half of the financial year (the benchmark returned 25.8% over the 6 months) echoing the trend witnessed last year when over 90% of the benchmark's performance for the 12 months to June 2010 occurred in the first half.

The Company's year started well as European debt fears eased and companies reported positive first half trading updates. However, markets around the world fell in August as investor's concerns regarding the sustainability of the recovery resurfaced. Equity indices recovered strongly from September onwards as the market priced in the increased likelihood of the US Federal Reserve embarking on a further round of Quantitative Easing. The Fed subsequently announced in November its intention to purchase $600 billion of US Government debt in an attempt to stimulate the US economy.

This increase in liquidity had a positive effect on risk assets and mid cap stocks staged a rally into the calendar year end with the benchmark rising by 10% in December. Throughout the second half of the financial year mid cap stocks consolidated their first half gains and by May had nearly reached their 2007 peak.

As the Company's financial year drew to a close bond markets were, once again, becoming increasingly concerned about the high level of debt many developed nations had taken on. Investors began to question the willingness and ability of Governments (especially in the Eurozone and the US) to reduce their deficits and bring their outstanding debt to a more manageable level.

Dana Petroleum, Kenmare Resources and ITV were the three largest positive contributors to relative performance over the year under review.

Dana Petroleum received a takeover approach from the Korean National Oil Corporation (KNOC) at the beginning of the Company's financial year. KNOC saw value in Dana's oil reserves and its growing production profile. The acquisition completed in October 2010 at £18 per share. Kenmare Resources mines and exports titanium minerals from the Moma mine in Mozambique. The minerals are used to produce titanium dioxide pigment which is used in paints, paper and plastic production. The stock rose over 200% as demand for global commodities rebounded. ITV was held in the portfolio until it was promoted into the FTSE 100 in March 2011. The stock performed well as advertising revenue increased and market fears about its balance sheet subsided.

The worst performing stocks over the year relative to the benchmark were Cable & Wireless Communications and Cable & Wireless Worldwide. Together these stocks represented more than half of the underperformance for the year under review.

Since Cable & Wireless demerged into two separate businesses trading has deteriorated for both companies. Cable & Wireless Communications (a provider of telecommunication services to consumers, businesses and governments in the Caribbean, Panama, Macau and Monaco) has experienced weaker demand in its Caribbean business, especially in Jamaica where reduced tourist numbers have impacted revenues and profitability. Cable & Wireless Worldwide (a provider of telecommunication services and infrastructure to businesses and the Government in the UK) has suffered a series of profit warnings relating to Government spending cuts, higher costs and a slowdown in sales to business customers.

At the sector level the underweight positions in the chemicals and industrials sectors negatively impacted relative performance. Many of the stocks in those sectors have seen their end markets recover strongly since 2009; however, it is our belief that analysts' expectations for future growth and margins are too high. We think there is little value to be found in these sectors at the moment and remain underweight.

Portfolio

Three stocks in this year's top ten investments were also in last year's top ten. Those stocks are Pennon (the South West water provider and waste treatment operator), FirstGroup (the bus and rail company) and Babcock (the support service provider to the defence, rail and marine sectors).

The largest holding in the portfolio is Go-Ahead, a company which provides bus and rail transportation to over 900million passengers in the UK. It trades on a price-to-earnings multiple of 10.5x, has a strong balance sheet and offers a degree of protection from rising inflation as a large proportion of the fares that the company charges are linked to the retail price index.

Other additions to the top ten include two stocks in the non-life insurance sector. Hiscox, the Lloyds of London insurer, and Jardine Lloyd Thompson, the insurance broker, should both benefit if insurance rates go up as anticipated. Natural disasters such as the Japanese earthquake, tsunami and the earthquakes in New Zealand have meant that capital within the sector has been reduced as insurers pay out on losses incurred. The industry is therefore likely to see increases to premiums over the next year. The top ten is drawn from a range of sectors reflecting the diversified nature of the portfolio.

Outlook

The credit crisis that began in 2007 is entering a new phase. The action that governments and central banks took in 2008 averted a collapse of the banking sector and protected the financial system. However, the underlying problem of too much total debt was not solved. Debt was merely transferred from private sector balance sheets to those of the public sector. The theoretical benefit of this was that governments had the luxury of reducing leverage in the system over a longer time frame.

For many developed economies, the market is now demanding that there is a restoration of fiscal responsibility through credible debt reduction plans. However, austerity plans must balance the need for such debt reductions against supporting the fragile economic recovery. Fiscal adjustment must be neither too fast nor too slow. What is needed is a dual focus on medium-term consolidation and short-term support for growth and jobs.

Uncertainty regarding politicians' ability to resolve this important conundrum has led to markets falling sharply since the company's year end. The likelihood of a double dip recession is undoubtedly increasing but we take comfort from the fact that there are now plenty of strong, good quality companies in the Mid 250 that are attractively valued. Equities also provide one of the best protections against inflation, which remains stubbornly high.

The macro economic outlook remains uncertain and consequently volatility is likely to remain a feature of markets for the foreseeable future. In this challenging environment we believe our shareholders will be best served by our continuing to focus on fundamentals and maintaining a medium-term investment horizon.

Jane Lennard

William Meadon

Investment Managers                                                                                                 

19th September 2011

Principal Risks 

With the assistance of the Manager, the Board has drawn up a risk matrix which identifies the key risks to the Company. These key risks fall broadly under the following categories:

•Investment and Strategy: An inappropriate investment strategy, for example asset allocation or the level of gearing, may lead to under-performance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount. The Board manages these risks by diversification of investments through its investment restrictions and guidelines which are monitored and reported. JPMAM provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, liquidity reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend all Board meetings, and reviews data which shows statistical measures of the Company's risk profile. The Investment Managers employ the Company's gearing tactically, within a strategic range set by the Board. The Board holds a separate meeting devoted to strategy each year.

•Financial: The Company is exposed to market risk, liquidity risk and credit risk. The principal financial risk facing the Company is market risk arising from uncertainty about the future prices of the Company's investments. It represents the potential loss the Company might suffer through holding investments in the face of negative market movements. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by JPMAM. The Board monitors the implementation and results of the investment process with the Investment Managers.

•Accounting, Legal and Regulatory: In order to qualify as an investment trust, the Company must comply with Section 1158 of the Income and Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given under "Business of the Company" above. Should the Company breach Section 1158, it may lose investment trust status and as a consequence capital gains within the Company's portfolio would be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by JPMAM and the results reported to the Board each month. The Company must also comply with the provisions of the Companies Act 2006 and, as its shares are listed on the London Stock Exchange, the UKLA Listing Rules. A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. A breach of the UKLA Listing Rules may result in the Company's shares being suspended from listing which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, JPMAM, and its professional advisers to ensure compliance with the Companies Act 2006 and the UKLA Listing Rules.

•Corporate Governance and Shareholder Relations: Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance report.

•Operational: Disruption to, or failure of, JPMAM's accounting, dealing or payments systems or the custodian's records may prevent accurate reporting and monitoring of the Company's financial position. Details of how the Board monitors the services provided by JPMAM and its associates and the key elements designed to provide effective internal control are included within the Internal Control section of the Corporate Governance report.

Directors' Responsibilities in Respect of the Accounts

The Directors are responsible for preparing the annual report and the accounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare accounts for each financial year. Under that law the Directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent; and

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Directors' Remuneration Report and Statement of Corporate Governance that comply with that law and those regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The accounts are published on the www.jpmmidcap.co.uk website, which is maintained by the Company's Manager, J.P. Morgan Asset Management (UK) Limited ('JPMAM'). The maintenance and integrity of the website maintained by JPMAM is, so far as it relates to the Company, the responsibility of JPMAM.

Statement under the Disclosure & Transparency Rules 4.1.12

(a) the accounts, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

(b) this Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.jpmmidcap.co.uk.

For further information please contact:

Alison Vincent

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

020 7742 6000

Income Statement

for the year ended 30th June 2011

		2011			2010
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair
value through profit or loss		-	28,009	28,009	-	19,812	19,812
Income from investments		3,768	-	3,768	3,795	-	3,795
Other interest receivable and similar
income		67	-	67	51	-	51
Gross return		3,835	28,009	31,844	3,846	19,812	23,658
Management fee		(166)	(388)	(554)	(147)	(343)	(490)
Other administrative expenses		(364)	-	(364)	(325)	-	(325)
Net return on ordinary activities
before finance costs and taxation		3,305	27,621	30,926	3,374	19,469	22,843
Finance costs		(343)	(800)	(1,143)	(354)	(825)	(1,179)
Net return on ordinary activities
before taxation		2,962	26,821	29,783	3,020	18,644	21,664
Taxation		(1)	-	(1)	(2)	-	(2)
Net return on ordinary activities
after taxation		2,961	26,821	29,782	3,018	18,644	21,662
Return per share	3	11.81p	106.95p	118.76p	11.94p	73.73p	85.67p

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies. 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.

Reconciliation of Movements in Shareholders' Funds

for the year ended 30th June 2011

	Called up	Capital
	share	redemption	Capital	Revenue
	capital	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000
At 30th June 2009	6,533	3,467	76,258	7,882	94,140
Repurchase of shares into Treasury	-	-	(856)	-	(856)
Net return on ordinary activities	-	-	18,644	3,018	21,662
Dividends appropriated in the year	-	-	-	(4,303)	(4,303)
At 30th June 2010	6,533	3,467	94,046	6,597	110,643
Repurchase of shares into Treasury	-	-	(588)	-	(588)
Net return on ordinary activities	-	-	26,821	2,961	29,782
Dividends appropriated in the year	-	-	-	(4,265)	(4,265)
At 30th June 2011	6,533	3,467	120,279	5,293	135,572

Balance Sheet

at 30th June 2011

		2011	2010
	Notes	£'000	£'000
Fixed assets
Equity investments held at fair value through profit or loss		143,703	115,605
Investment in liquidity fund held at fair value through profit or loss		2,640	1,200
Total investments		146,343	116,805
Current assets
Debtors		3,270	3,917
Cash and short term deposits		35	73
		3,305	3,990
Current liabilities
Creditors: amounts falling due within one year		(4,580)	(662)
Net current (liabilities)/assets		(1,275)	3,328
Total assets less current liabilities		145,068	120,133
Creditors: amounts falling due after more than one year		(9,496)	(9,490)
Net assets		135,572	110,643
Capital and reserves
Called up share capital		6,533	6,533
Capital redemption reserve		3,467	3,467
Capital reserves		120,279	94,046
Revenue reserve		5,293	6,597
Shareholders' funds		135,572	110,643
Net asset value per share	4	543.2p	441.0p

JPMorgan Mid Cap Investment Trust plc

Registration number: 1047690

Cash Flow Statement

for the year ended 30th June 2011

		2011	2010
		£'000	£'000
Net cash inflow from operating activities		2,743	2,573
Returns on investments and servicing of finance
Interest paid		(1,136)	(1,171)
Net cash outflow from returns on investments and servicing
of finance		(1,136)	(1,171)
Taxation
Overseas tax recovered		6	-
Capital expenditure and financial investment
Purchases of investments		(144,455)	(153,572)
Sales of investments		147,448	157,281
Other capital charges		(13)	(16)
Net cash inflow from capital expenditure and financial
investment		2,980	3,693
Dividends paid		(4,265)	(4,303)
Net cash inflow before financing		328	792
Financing
Repurchase of shares into Treasury		(366)	(852)
Net cash outflow from financing		(366)	(852)
Decrease in cash and cash equivalents		(38)	(60)

Notes to the Accounts

for the year ended 30th June 2011

1.          Accounting policies

            Basis of accounting

            The accounts are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the AIC in January 2009.

            All of the Company's operations are of a continuing nature.

            The accounts have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of investments at fair value through profit or loss.

            The policies applied in these accounts are consistent with those applied in the preceding year.

2.         Dividends

            Dividends paid and proposed

	2011	2010
	£'000	£'000
2010 Final dividend of 11.5p (2009: 11.5p)	2,885	2,911
Interim dividend of 5.5p (2010: 5.5p)	1,380	1,392
Total dividends paid in the year	4,265	4,303
2011 Final dividend proposed of 11.5p (2010: 11.5p)	2,870	2,885

            The final dividend has been proposed in respect of the year ended 30th June 2011 and is subject to approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the accounts for the year ending 30th June 2012.

3.         Return per share

            The revenue return per share is based on the earnings attributable to the ordinary shares of £2,961,000 (2010; £3,018,000) and on the weighted average number of shares in issue during the year of 25,078,189 (2010: 25,286,774).

            The capital return per share is based on the capital return attributable to the ordinary shares of £26,821,000 (2010: £18,644,000) and on the weighted average number of shares in issue during the year of 25,078,189 (2010: 25,286,774).

            Total return per share is based on the total return attributable to the ordinary shares of £29,782,000 (2010: £21,662,000) and on the weighted average number of shares in issue during the year of 25,078,189 (2010: 25,286,774).

4.         Net asset value per share

            Net asset value per share is based on total shareholders' funds of £135,572,000 (2010: £110,643,000) and on the 24,956,680 (2010: 25,086,680) shares in issue at the year end, excluding shares held in Treasury.

5.         Status of announcement

2010 Financial Information

The figures and financial information for 2010 are extracted from the Annual Report and Accounts for the year ended 30th June 2010 and do not constitute the statutory accounts for that year.  The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

2011 Financial Information

The figures and financial information for 2011 are extracted from the Annual Report and Accounts for the year ended 30th June 2011 and do not constitute the statutory accounts for that year.  The Annual Report and Accounts includes the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Registrar of Companies in due course.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

ENDS

A copy of the annual report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.hemscott.com/nsm.do

The annual report is also available on the Company's website at www.jpmmidcap.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

 

END

 

 

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