Final Results

Manchester & London Inv Tst PLC 01 October 2003 Manchester & London Investment Trust plc ANNOUNCEMENT OF THE AUDITED GROUP RESULTS For the year ended 31st July 2003 Attached pages 1 - 5 Enquiries : Manchester & London Investment Trust plc B S Sheppard Tel : 0161-228-1709 Brokers : Midas Investment Management Limited M B B Sheppard Tel : 0161-228-1709 Manchester & London Investment Trust plc 1st October 2003 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 1 of 5 The Directors Announce the Audited Figures For the year ended 31st July 2003 Consolidated Statement of Total Return (incorporating the revenue account) 2003 2002 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains (losses) on investments - 1,651 1,651 - (1,295) (1,295) Income (note 1) 1,125 - 1,125 1,018 370 1,388 Investment management fee (55) (102) (157) (55) (102) (157) Other expenses (178) - (178) (174) - (174) Return on ordinary activities before taxation 892 1,549 2,441 789 (1,027) (238) Taxation on ordinary activities (30) 30 - (11) 11 - Return on ordinary activities after taxation 862 1,579 2,441 778 (1,016) (238) Dividends in respect of non-equity shares (57) - (57) (57) - (57) Return attributable to equity shareholders 805 1,579 2,384 721 (1,016) (295) Dividends in respect of equity shares (713) - (713) (638) - (638) Transfer to (from) reserves 92 1,579 1,671 83 (1,016) (933) Return per ordinary share (pence) Basic 10.73 21.06 31.79 9.61 (13.54) (3.93) Fully diluted 8.23 15.07 23.30 7.43 (9.70) (2.27) The revenue column of this statement is the consolidated profit and loss account of the Group. All revenue and capital items in the above statement derive from continuing operations. Non-equity dividends Dividends per preference share accrue at the rate of 7.6% p.a. Equity dividends Interim dividend paid per each 25p ordinary share 2.5p (2002 - 2.5p) Increased final dividend proposed per each 25p ordinary share 7.0p (2002 - 6.0p) The ordinary dividend is payable on 4th February 2004 to shareholders on the Register at the close of business on 17th October 2003. Manchester & London Investment Trust plc 1st October 2003 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 2 of 5 Consolidated Balance Sheet At 31st July 2003 2003 2002 £'000 £'000 £'000 £'000 Fixed Assets Investments 20,093 28,378 Current Assets Debtors 170 714 Cash and short term deposits 10,701 408 10,871 1,122 Creditors Amounts falling due within one year (6,114) (908) Net Current Assets 4,757 214 Total assets less current liabilities 24,850 28,592 Creditors Amounts falling due after more than one year - (5,413) Net Assets 24,850 23,179 Capital and Reserves Called-up Share Capital 2,619 2,619 Other reserves Capital reserve - realised 19,115 16,570 Capital reserve - unrealised 589 1,555 Goodwill reserve (79) (79) Revenue reserve 2,606 2,514 Total shareholders' funds 24,850 23,179 Equity interests - Ordinary shares 24,106 22,435 Non-equity interests - Preference shares 744 744 24,850 23,179 Net Asset Value per share Ordinary shares - basic 321.4p 299.1p Ordinary shares - fully diluted 237.2p 221.2p Manchester & London Investment Trust plc 1st October 2003 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 3 of 5 Consolidated Cashflow Statement For the year ended 31st July 2003 2003 2002 £'000 £'000 £'000 £'000 Operating activities Net dividends and interest received from investments 1,288 641 Other income 274 282 Investment management fees paid (150) (152) Other cash payments (175) (190) Net cash inflow from operating activities 1,237 581 Servicing of finance Preference dividend paid (57) (57) Net cash outflow from servicing of finance (57) (57) Financial investment Purchase of investments (16,263) (15,937) Sale of investments 26,014 6,220 Net cash inflow (outflow) from financial investment 9,751 (9,717) Equity dividends paid (638) (330) Increase (decrease) in cash 10,293 (9,523) Reconciliation of net cash flow to movement in net funds Increase (decrease) in cash in year 10,293 (9,523) Net funds at beginning of year 408 9,931 Net funds at end of year 10,701 408 Manchester & London Investment Trust plc 1st October 2003 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 4 of 5 Note 1 2003 2002 £'000 £'000 Income Income from investments UK dividends 750 693 Government securities 83 64 833 757 Other income Deposit interest 292 261 Total income 1,125 1,018 The above financial information does not constitute statutory financial statements as defined in Section 240 of the Companies Act 1985. The comparative financial information is based on the statutory financial statements for the year ended 31st July 2002. Those financial statements, upon which the auditor issued an unqualified opinion, have been delivered to the Registrar of Companies. Statutory financial statements for the year ended 31st July 2003 will be delivered to the Registrar. Manchester & London Investment Trust plc 1st October 2003 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 5 of 5 CHAIRMAN'S STATEMENT My Interim Statement in February this year very nearly coincided with the nadir of the 2000/03 bear market which was principally caused by the collapse of grossly overvalued technology stocks, forced selling by insurance companies and the adverse effect of FRS 17 on corporate pension funds. The year under review has, therefore, been a roller coaster with the first half recording a further decline in the net asset value which has been more than recovered in the second half; over the year as a whole the gain has been 7.23% which compares with a 0.24% decrease in the FTSE All-Share Index. This is a creditable performance, taking into account our cautionary stance reflected by the cash position amounting to 62% of net assets at the interim stage, which has been reduced to 21% at the year end after adjusting for the repayment of the £5.4m interest free loan from our parent company. The projected income for the current year is expected to be similar to the year under review, as the benefit of the interest free loan (now repaid) was substantially negated by the fact that our holding of Andrews Sykes did not generate any income. As reported at the interim stage, however, the Andrews Sykes investment contributed substantially to our performance throughout the latter part of the bear market. We have adhered to our investment policy during the last twelve months by maintaining substantial cash balances during the storm and investing mainly in sound income producing stocks when the clouds started lifting. Interest rates have now fallen to the lowest level for nearly 50 years. We continue to believe that sound income stocks should not only produce a reasonable return for shareholders but also create some capital growth as investors move out of cash deposits, which now offer very low returns. Interest rates now appear to be at or near their low point and we are mindful that the long decline could soon reverse itself. Six months ago the major worry seemed to be the threat of deflation; hence the substantial fall in interest rates during the last three years. Recently, however, there has been a subtle change in attitudes as inflation creeps back into the system, particularly the service sector. Government borrowing and consumer spending are the driving forces of the putative recovery in Western economies but one must question whether this formula is sustainable. Currency pressures and global trade patterns are moving into uncharted territory and the jury is still undecided whether deflation or inflation is becoming the main economic threat. We are proposing a final dividend of 7p, making a total of 9.5p for the year, thus enabling the Company to comply with the Inland Revenue distribution requirements. Although the Directors intend that the record date for the final dividend will be 17th October 2003, they also intend to recommend that the dividend on the ordinary shares be declared and that payment be made on 4th February 2004. This is because once the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 come into force in December this year and the consequent amendments to the Listing Rules have been finalised, your Board wishes to explore the possibility of enabling shareholders to have the option of receiving existing issued shares (which have been bought in the market into treasury) in lieu of dividends should they wish to do so including, if possible, in lieu of this year's final dividend. If this proves feasible, an Extraordinary General Meeting will be convened in the new year and shareholders will receive a circular setting out full details of the proposals, seeking their approval for the relevant authorities and to amend the Articles of Association as required. The Annual General Meeting is to be held at 45 Spring Gardens, Manchester M2 2BG, at 12.45pm on Thursday 20th November 2003, after which the results of the draw for Wimbledon tickets will be announced. P. H. A. Stanley FCA Chairman 1st October 2003 This information is provided by RNS The company news service from the London Stock Exchange

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