Final Results - Year Ended 30 April 2000

Monks Investment Trust PLC
2 June 2000


The Monks Investment Trust PLC

Results for the year to 30 April 2000

Salient points

 
* NAV up 19.5% to 1,205.2p, compared with a rise of 14.4% in the FTSE World
Index (in sterling terms). Over the six months to 30 April 2000 NAV per share
rose by 18.1% compared with a rise of 11.6% in the FTSE World Index (in
sterling terms). 

* Final dividend maintained at 6.20p, giving an unchanged total dividend for
the year of 9.70p. The Board is expecting maintained earnings of around 7p
next year and an appreciable drop in dividend, reflecting the Company's
higher weighting in equities and lower holding of bonds and cash. 

* UK weighting cut from over 40% to 28.5%, reflecting Monks' stated objective
to invest internationally to achieve capital growth. The Managers have made
net investments of £27 million in the United States, £25 million in Japan and
£18 million in Asia Pacific. 

* Increased weighting in telecoms and information technology, rising from
16.0% to 26.2%. 

* Gearing increased through a euro 50 million loan at an interest rate of
4.9% to finance the purchase of high yielding euro-denominated bonds. 

* Over 9 million shares bought back at discounts of between 15% and 19.5%,
adding 2.1% to NAV per share. 

The Monks Investment Trust PLC (Monks), with total assets of £926 million,
invests internationally in order to achieve capital growth. An ISA and Share
Plan are available.

 
Monks is managed by Baillie Gifford & Co., the leading Edinburgh based fund
management group with over £21 billion funds under management and advice.
 
 
 
For further information please contact:
 

Richard Burns, Manager     

The Monks Investment Trust PLC     0403 439 226
 
Mike Lord, Director
Broadgate Marketing     020 7726 6111
 
 
Baillie Gifford & Co. is regulated by IMRO. 

THE MONKS INVESTMENT TRUST PLC

The following is the unaudited preliminary statement for the year to 30 April
2000 which was approved by the Board on 1 June 2000. The Directors of The
Monks Investment Trust PLC are recommending to the Annual General Meeting of
the Company to be held on 25 July 2000 the payment of a final dividend of
6.20p net (6.20p net last year) per ordinary share, making a total of 9.70p
net (9.70p net last year) per ordinary share for the year ended 30 April 2000.

 
STATEMENT OF TOTAL RETURN

(unaudited and incorporating the revenue account*) 
 

                                                                              
                                               For the year ended             
                                                  30 April 2000               
                                    Revenue               Capital    Total    
                                                                              
                                    £'000                 £'000      £'000    
                                                                              
  Gains on investments              -                     129,793    129,793  
  Currency gains/(losses)           -                     407        407      
  Income (note 1)                   17,560                -          17,560   
  Investment management fee         (4,075)               -          (4,075)  
  Other administrative expenses     (964)                 -          (964)    
  Net return before finance costs                                             
  and taxation                      12,521                130,200    142,721  
  Finance costs of borrowings       (7,065)               -          (7,065)  
  Return on ordinary activities                                               
  before taxation                   5,456                 130,200    135,656  
  Tax on ordinary activities        (386)                 -          (386)    
  Return on ordinary activities                                               
  after taxation                    5,070                 130,200    135,270  
  Dividends in respect of equity                                              
  shares (note 2)                   (6,752)               -          (6,752)  
  Transfer (from)/to reserves       (1,682)               130,200    128,518  
                                                                              
  Return per ordinary share         6.89p                 176.84p    183.73p  
  (note 3)                                                                    
                                                                              
  Dividend per ordinary share       9.70p                                     
 
 
                                                                              
                                               For the year ended             
                                                 30 April 1999                
                                  Revenue              Capital   Total        
                                  (restated)                     (restated)   
                                  £'000                £'000     £'000        
                                                                              
  Gains on investments            -                    61,725    61,725       
  Currency gains/(losses)         -                    (1,898)   (1,898)      
  Income (note 1)                 22,066               -         22,066       
  Investment management fee       (3,524)              -         (3,524)      
  Other administrative expenses   (476)                -         (476)        
  Net return before finance                                                   
  costs and taxation              18,066               59,827    77,893       
  Finance costs of borrowings     (6,837)              -         (6,837)      
  Return on ordinary activities                                               
  before taxation                 11,229               59,827    71,056       
  Tax on ordinary activities      (1,091)              -         (1,091)      
  Return on ordinary activities                                               
  after taxation                  10,138               59,827    69,965       
  Dividends in respect of                                                     
  equity shares (note 2)          (7,480)              -         (7,480)      
  Transfer (from)/to reserves     2,658                59,827    62,485       
                                                                              
  Return per ordinary share       13.07p               77.16p    90.23p       
  (note 3)                                                                    
                                                                              
  Dividend per ordinary share     9.70p                                       
 
 
* The revenue column of this statement is the profit and loss account of the
Company. 
All revenue and capital items in the above statement derive from continuing
operations. 
 
 
THE MONKS INVESTMENT TRUST PLC

 
SUMMARISED BALANCE SHEET

at 30 April 2000 
(unaudited) 
 
 

                                                                              
                                                                              
                                               30 April 2000    30 April 1999 
                                               £'000            £'000         
                                                                              
  Net assets                                                                  
  Investments at market value                  879,964          813,640       
  Net liquid assets                            46,486           41,650        
  Total assets (before deduction of loans             
  and debentures)                              926,450          855,290       
  Debentures and short term borrowings 
  (note 4)                                    (108,373)        (79,223)      
                                                                           
                                               818,077          776,067       
                                                                              
  Capital and Reserves                                                        
  Called-up share capital                      16,955           19,210        
  Capital reserves                             784,455          738,508       
  Revenue reserve                              16,667           18,349        
  Equity shareholders' funds                   818,077          776,067       
 

                                                                         
                                                                         
  Net asset value per ordinary share           1,205.2p      1,008.9p   
  (after deducting prior charges at par)                             
  Ordinary shares in issue (note 5)            67,818,870    76,842,000 
 

DISTRIBUTION OF ASSETS

at 30 April 2000 
(unaudited) 
 

                                                                              
                                                                              
                                                 30 April 2000   30 April 1999
                                                 %               %            
                                         
                                                                              
  Equities:  United Kingdom                      28.5            43.1         
             Continental Europe                  17.4            15.6         
             North America                       13.2            8.0          
             Latin America                       0.6             0.7          
             Japan                               11.8            4.4          
             Asia Pacific                        6.0             3.5          
                                                 77.5            75.3
         
  Bonds:     UK                                  1.0             1.2          
             Continental Europe                  2.4             4.6          
             North America                       14.1            14.0         
  Net liquid assets                              5.0             4.9          
  Total assets (before debentures 
  and short term borrowings)                     100.0           100.0        
                                    
 

THE MONKS INVESTMENT TRUST PLC

 

                                                                              
  SUMMARISED CASH FLOW STATEMENT                                              
  (unaudited)                                                                 
                          For the year ended          For the year ended      
                            30 April 2000                30 April 1999        
                        £'000        £'000               £'000       £'000    
                                                                              
  NET CASH INFLOW                       
  FROM OPERATING                                                              
  ACTIVITIES                        12,276                          17,382    
                                   
  NET CASH OUTFLOW                     
  FROM SERVICING OF                                                           
  FINANCE                           (6,976)                         (6,387)   
                             
  TOTAL TAX PAID                     (404)                           (980)    
  
  FINANCIAL INVESTMENT                                                        
  Acquisitions of                   
  investments          (535,501)                       (349,599)

                      
  Disposals of                        
  investments           579,826                          330,923              
                                       
  Realised currency                                                           
  gain/(loss)              135                           (1,898)              
                                      
                                                                              
  NET CASH                                                                    
  INFLOW/(OUTFLOW)                    
  FROM FINANCIAL                                                              
  INVESTMENT                         44,460                          (20,574) 
                                       
  EQUITY DIVIDENDS                     
  PAID                               (7,311)                         (7,527)  
                                      
  NET CASH                                                                    
  INFLOW/(OUTFLOW)                    
  BEFORE USE OF                                                               
  LIQUID RESOURCES                                                            
  AND FINANCING                      42,045                          (18,086) 
                                       
  MANAGEMENT OF                                                               
  LIQUID RESOURCES                     
  Decrease/(increase)                                                         
  in term deposits                   5,000                           (5,000)  
                                      
  FINANCING                                                                   
  Shares purchased      
  for cancellation      (86,508)                         (6,102)      
                           
  Bank loans drawn                  
  down                   29,389                           -                   
                                  
  Debenture stock                                                             
  issued                  -                              39,193               
                                       
  NET CASH                              
  (OUTFLOW)/INFLOW                                                            
  FROM FINANCING                     (57,119)                        33,091   
                                    
  (DECREASE)/INCREASE                  
  IN CASH                            (10,074)                        10,005   
                                      
  RECONCILIATION OF                                                           
  NET CASH FLOW TO                                                            
  MOVEMENT IN NET DEBT 
                                                       
  (Decrease)/increase                   
  in cash in the                                                              
  period                             (10,074)                        10,005   
                                     
  (Decrease)/increase                    
  in short term                                                               
  investments                        (5,000)                         5,000    
                                    
  Cash received from                  
  issue of debenture                                                          
  stock                              -                               (39,193) 
                                       
  Cash received from                       
  bank loans drawn                                                            
  down                               (29,389)                        -        
                                
  Exchange movement                          
  on bank loans                      272                             -        
                                
  Other non-cash                          
  changes                            (33)                            (30)     
                                   
  MOVEMENT IN NET                     
  DEBT IN THE PERIOD                 (44,224)                        (24,218) 
                                       
  NET (DEBT)/FUNDS AT                    
  1 MAY 1999                         (21,740)                        2,478    
                                   
  NET DEBT AT 30                      
  APRIL 2000                         (65,964)                        (21,740) 
                                       
 

THE MONKS INVESTMENT TRUST PLC

 
NOTES

 

                                                       
                                                       
                                             30 April 2000    30 April 1999 
                                                     £'000            £'000   
     
 
1.     Income                                                   (restated) 

                                                                            
Income from investments and interest receivable          17,560    22,008 
Other income                                                 -         58     
 

2. The total cost of the dividend for the year is £6,752,000 (1999 -
£7,480,000). If approved the final dividend will be paid on 7 August 2000 to
all shareholders on the register at the close of business on 14 July 2000.
 
3.     Return per ordinary share 

                                                    
Revenue return                                          5,070      10,138 
Capital return                                          130,200    59,827 
 

Return per ordinary share is based on the above totals for revenue and
capital and on 73,625,591 (1999 - 77,540,630) ordinary shares, being the
weighted average number of ordinary shares in issue during the year.

 
4.     Loans and debentures include euro50 million drawn down under a
multi-currency loan facility repayable on 29 March 2001.
 
5.     At the EGM in January 1999 authority was granted to the Company to buy
back 11,631,040 ordinary shares, of which 750,000 were bought back in the
year to 30 April 1999 at a cost of £6,102,000. During the year to 30 April
2000 a further 9,023,130 ordinary shares with a nominal value of £2,255,000
were bought back at a total cost of £86,508,000. The authority was renewed at
the EGM in April 2000 in respect of 10,166,048 ordinary shares (equivalent to
14.99% of its issued share capital at that date). At 30 April 2000 the
Company's authority to buy back its own shares remained unchanged at
10,166,048 shares.
 
6. Change in accounting policy 
FRS 16 'Current Tax' came into effect for reporting periods ending on or
after 23 March 2000. The change introduced by the Standard, 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 30 April 2000 this reduces gross income and taxation equally by £748,000
(1999 - £1,145,000), the net effect has no impact upon the revenue return
attributable to equity shareholders.
 
7.     The financial information set out above does not constitute the
Company's statutory accounts for the year ended 30 April 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.