Final Results
Pacific Horizon Investment Tst PLC
05 September 2007
PACIFIC HORIZON INVESTMENT TRUST PLC
Results for the year to 31 July 2007
The Company's net asset value per share rose by 56.8% while the MSCI All Country
Far East ex Japan Index in sterling terms gained 38.1%. In this period, the
Company's share price rose by 69.6%.
• During the second half of the Company's year, net asset value per share
rose by 34.9% compared to 21.3% for the comparative index.
• Over the year, holdings of Chinese companies listed in Hong Kong
contributed significantly to performance. Having repaid all borrowings in
the first half of the year, the Company had no borrowings as at year end.
• At the 2006 Annual General Meeting shareholders voted to extend the life of
the Company for a further five years and to permit investment in the
markets of the Indian Sub-continent. As at year end 2.9% of the portfolio
was invested in the Indian market.
• During the year a total of 1,450,000 shares were issued at a minimum
premium of 5% to net asset value per share.
• An unchanged dividend of 1.10p is being recommended by the Board. Revenue
earnings per share for the year declined by 4.0%.
• The Board and Managers believe the long term outlook for investment in the
region remains favourable but the shorter term is less clear owing to
uncertainty about the impact of problems in the global credit markets on
real economic activity.
Pacific Horizon Investment Trust PLC (Pacific Horizon) aims to achieve capital
growth through investment in the stockmarkets of the Asia-Pacific region
(excluding Japan) and in the stockmarkets of the Indian Sub-continent. The
Company has total assets of £130 million.
Pacific Horizon is managed by Baillie Gifford & Co, the Edinburgh based fund
management group with around £52 billion under management and advice as at 4
September 2007.
5 September 2007
- ends -
For further information please contact:
Gerald Smith, Manager,
Baillie Gifford & Co 0131 275 2000
Mike Lord, Director
Broadgate 020 7726 6111
PACIFIC HORIZON INVESTMENT TRUST PLC
The following is the unaudited preliminary statement for the year to 31 July
2007 which was approved by the Board on 4 September 2007. The Directors of
Pacific Horizon Investment Trust PLC are recommending to the Annual General
Meeting of the Company to be held on 24 October 2007 the payment of a final
dividend of 1.10p net (31 July 2006 - 1.10p net) per ordinary share for the year
ended 31 July 2007.
INCOME STATEMENT
(unaudited)
For the year ended For the year ended
31 July 2007 31 July 2006
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 46,596 46,596 - 13,286 13,286
Currency gains - 13 13 - 411 411
Income (note 2) 3,031 - 3,031 2,887 - 2,887
Investment management fee (1,052) - (1,052) (765) - (765)
Other administrative expenses (270) - (270) (241) - (241)
Net return before finance costs
and taxation 1,709 46,609 48,318 1,881 13,697 15,578
Finance costs of borrowings (103) - (103) (257) - (257)
Return on ordinary activities
before taxation 1,606 46,609 48,215 1,624 13,697 15,321
Tax on ordinary activities (482) - (482) (464) - (464)
Return on ordinary activities
after taxation 1,124 46,609 47,733 1,160 13,697 14,857
Return per ordinary share
(note 3) 1.45p 60.17p 61.62p 1.51p 17.91p 19.42p
The total column of this statement is the profit and loss account of the
Company.
All revenue and capital items in this statement derive from continuing
operations.
A Statement of Total Recognised Gains and Losses is not required as all gains
and losses of the Company have been reflected in the above statement.
PACIFIC HORIZON INVESTMENT TRUST PLC
BALANCE SHEET
(unaudited)
At 31 July 2007 At 31 July 2006
£'000 £'000 £'000 £'000
FIXED ASSETS
Investments held at fair value through profit or loss 128,845 86,433
CURRENT ASSETS
Debtors 288 387
Cash and short term deposits 1,718 2,960
2,006 3,347
CREDITORS:
Amounts falling due within one year (note 5) (721) (8,334)
NET CURRENT ASSETS/(LIABILITIES) 1,285 (4,987)
TOTAL ASSETS LESS CURRENT LIABILITIES 130,130 81,446
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation (53) (56)
130,077 81,390
CAPITAL AND RESERVES
Called-up share capital 7,794 7,649
Share premium 2,615 965
Special distributable reserve 13,233 13,233
Capital redemption reserve 17,964 17,964
Capital reserve - realised 26,259 13,512
Capital reserve - unrealised 59,007 25,145
Revenue reserve 3,205 2,922
EQUITY SHAREHOLDERS' FUNDS 130,077 81,390
NET ASSET VALUE PER ORDINARY SHARE 166.90p 106.41p
Ordinary shares in issue (note 6) 77,937,002 76,487,002
PACIFIC HORIZON INVESTMENT TRUST PLC
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 July 2007 (unaudited)
Note Called-up Special Capital Capital Capital Equity
share Share distributable redemption reserve reserve - Revenue shareholders'
capital premium reserve reserve realised unrealised reserve funds
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds 7,649 965 13,233 17,964 13,512 25,145 2,922 81,390
at 1 August 2006
Return on ordinary - - - - 12,747 33,862 1,124 47,733
activities after taxation
Shares issued in the year 6 145 1,650 - - - - - 1,795
Dividends paid during 4 - - - - - - (841) (841)
the year
Shareholders' funds 7,794 2,615 13,233 17,964 26,259 59,007 3,205 130,077
at 31 July 2007
For the year ended 31 July 2006 (unaudited)
Special Capital Capital Capital Equity
Called-up distributable redemption reserve reserve - share-
share Share reserve reserve - unrealised Revenue holders'
Note capital premium realised reserve funds
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds at 1 August 7,649 965 13,233 17,964 5,276 19,684 2,603 67,374
2005
Return on ordinary activities - - - - 8,236 5,461 1,160 14,857
after taxation
Dividends paid during the year 4 - - - - - - (841) (841)
Shareholders' funds at 31 July 7,649 965 13,233 17,964 13,512 25,145 2,922 81,390
2006
PACIFIC HORIZON INVESTMENT TRUST PLC
CASH FLOW STATEMENT
(unaudited)
For the year ended For the year ended
31 July 2007 31 July 2006
Note £'000 £'000
NET CASH INFLOW FROM OPERATING ACTIVITIES 1,486 1,747
SERVICING OF FINANCE
Interest paid (192) (169)
NET CASH OUFLOW FROM SERVICING OF FINANCE (192) (169)
TAXATION
Corporation tax paid (357) (337)
TOTAL TAX PAID (357) (337)
FINANCIAL INVESTMENT
Acquisitions of investments (35,542) (40,875)
Disposals of investments 39,817 34,700
NET CASH INFLOW/(OUTFLOW) FROM FINANCIAL INVESTMENT 4,275 (6,175)
EQUITY DIVIDEND PAID 4 (841) (841)
NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 4,371 (5,775)
FINANCING
Shares issued 6 1,795 -
Loans drawn down 5 - 23,723
Loans repaid (7,408) (15,641)
NET CASH (OUTFLOW)/INFLOW FROM FINANCING (5,613) 8,082
(DECREASE)/INCREASE IN CASH (1,242) 2,307
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/
(DEBT)
(Decrease)/increase in cash in the year (1,242) 2,307
Cash outflow/(inflow) from movement in bank loans 7,408 (8,082)
Exchange movement on bank loans 173 501
MOVEMENT IN NET FUNDS/(DEBT) IN THE YEAR 6,339 (5,274)
NET (DEBT)/FUNDS AT 1 AUGUST (4,621) 653
NET FUNDS/(DEBT) AT 31 JULY 1,718 (4,621)
RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND
TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Net return on ordinary activities before finance costs and
taxation 48,318 15,578
Gains on investments - securities (46,596) (13,286)
Currency gains (13) (411)
Decrease in accrued income 20 13
(Increase) in debtors (9) (14)
Increase in creditors 85 91
Realised currency loss (160) (90)
Overseas tax suffered (159) (134)
NET CASH INFLOW FROM OPERATING ACTIVITIES 1,486 1,747
PACIFIC HORIZON INVESTMENT TRUST PLC
THIRTY LARGEST EQUITY HOLDINGS
at 31 July 2007
(unaudited)
% of
total
Value
assets ++
Name Country Business £'000
Samsung Corporation Korea Construction and trading company 7,058 5.4
China Infrastructure Machinery
Holdings Hong Kong Infrastructure machinery manufacturer 5,309 4.1
Samsung Heavy Industries Korea Shipbuilder 4,454 3.4
CNPC Hong Kong Hong Kong Oil and gas exploration and production 4,276 3.3
Bakrie and Brothers Indonesia Infrastructure product supply company 4,036 3.1
Pacific Basin Shipping Hong Kong Shipping company 3,720 2.9
Singapore Exchange Singapore Stock exchange 3,596 2.8
Hong Kong Exchanges and
Clearing Hong Kong Stock exchange 3,534 2.7
Taiwan Semiconductor
Manufacturing Taiwan Semiconductor equipment manufacturer 3,064 2.4
Thoresen Thai Agencies Thailand Shipping company 2,922 2.2
Hon Hai Precision Industries Taiwan Electronic manufacturing services
company 2,906 2.2
ASM Pacific Technology Hong Kong Semiconductor equipment manufacturer 2,898 2.2
Daewoo Shipbuilding and Marine Korea Shipbuilder 2,711 2.1
Li & Fung Hong Kong Supply chain management 2,680 2.1
KS Energy Services Singapore Oil services provider 2,513 1.9
Petrochina China Integrated oil and gas company 2,227 1.7
Hang Lung Properties Hong Kong Real estate developer 1,981 1.5
Malaysia International Shipping
Corporation Malaysia Marine transport company 1,966 1.5
Vietnam Growth Fund Vietnam Vietnam investment fund 1,814 1.4
Ayala Corp Philippines Holding company 1,710 1.3
Agile Property Holdings Hong Kong Real estate developer 1,706 1.3
Shun Tak Holdings Hong Kong Diversified Macau based conglomerate 1,690 1.3
China Shenhua Energy China Coal producer 1,681 1.3
Sembcorp Marine Singapore Shipbuilder 1,667 1.3
CapitaMall Trust Singapore Property trust 1,629 1.2
POSCO Korea Steel manufacturer 1,598 1.2
Reliance Industries India Petrochemical manufacturer 1,522 1.2
Angang Steel China Steel manufacturer 1,521 1.2
SFA Engineering Korea Engineering company 1,519 1.2
China Nickel Resource Holdings Hong Kong Steel producer 1,422 1.1
81,330 62.5
All stocks are listed overseas.
++ Total assets less current liabilities and deferred tax, before deduction of
bank loans.
PACIFIC HORIZON INVESTMENT TRUST PLC
DISTRIBUTION OF ASSETS
(unaudited)
At 31 July At 31 July 2006
2007 %
%
Equities*: Hong Kong and China 34.8 35.0
Korea 19.1 14.4
Singapore 12.2 12.1
Taiwan 11.6 15.0
Malaysia 5.4 5.3
Indonesia 4.6 3.6
Thailand 4.2 7.9
India 2.9 -
Philippines 2.4 1.9
Vietnam 1.9 1.9
Total equities 99.1 97.1
Net liquid assets 0.9 2.9
Total assets ++ 100.0 100.0
* Equities includes warrants.
++ Total assets less current liabilities and deferred tax, before deduction of
bank loans.
PACIFIC HORIZON INVESTMENT TRUST PLC
NOTES
(unaudited)
1. The financial statements for the year to 31 July 2007 have been prepared on the basis of the
accounting policies set out in the Company's Annual Financial Statements at 31 July 2006.
The Directors consider the Company's functional currency to be sterling as the Company's
shareholders are predominantly based in the UK and the Company is subject to the UK's regulatory
environment.
31 July 2007 31 July 2006
£'000 £'000
2. Income
Income from investments and interest receivable 3,031 2,887
3. Return per ordinary share
Revenue return 1,124 1,160
Capital return 46,609 13,697
Return per ordinary share is based on the above totals for revenue and capital and on 77,461,796 (31
July 2006 - 76,487,002) ordinary shares, being the weighted average number of ordinary shares in
issue during the year.
31 July 2007 31 July 2006
£'000 £'000
4. Dividends
Amounts recognised as distributions in the
period:
Final dividend for the year ended 31 July 2006
of 1.10p (2005 - 1.10p) paid 30 October 2006 841 841
If approved, the proposed final dividend of 1.10p per ordinary share for the year ended 31 July 2007
will be paid on 29 October 2007 to shareholders on the register at the close of business on 5
October 2007. The ex-dividend date is 3 October 2007. The total cost of the dividend for the year
is £857,000 (31 July 2006 - £841,000).
5. A one year £9 million multi-currency facility has been arranged with the Bank of New York Mellon
which expires on 25 June 2008. In addition the Company has a £5 million multi-currency loan
facility with the Royal Bank of Scotland plc. At 31 July 2007 there were no outstanding drawings (31
July 2006 - The Bank of New York HK$110 million at an interest rate of 5.13%).
6. The Company has authority to allot shares under section 80 of the Companies Act 1985 which was
renewed at the Annual General Meeting on 24 October 2006. The Board has authorised the use of this
authority to issue new shares at a premium of 5% in order to enhance the net asset value per share
for existing shareholders and improve liquidity of the Company's shares. In the year to 31 July
2007 a total of 1,450,000 ordinary shares of 10p each fully paid were issued for cash amounting to
£1,795,000 of which £145,000 has been applied in increasing the share capital and £1,650,000 in
increasing the share premium account.
At the Extraordinary General Meeting in April 2001 the Company was first granted authority to buy
back its own ordinary shares (equivalent to 14.99% of its issued share capital at that date). The
authority was renewed at the Annual General Meeting on 24 October 2006 in respect of 11,465,401
shares (equivalent to 14.99% of its issued share capital at that date). In the year to 31 July 2007
no ordinary shares were bought back. As a result at 31 July 2007 the Company's authority to buy back
shares remains unchanged at 11,465,401 ordinary shares.
7. The Report and Accounts will be available on the Managers' website www.bailliegifford.com on or
around 18 September 2007.
PACIFIC HORIZON INVESTMENT TRUST PLC
NOTES (Continued)
(unaudited)
8. The financial information set out above does not constitute the Company's statutory accounts for the
year ended 31 July 2007. The financial information for 2006 is derived from the statutory accounts for
2006. Those accounts have been delivered to the Registrar of Companies. The Auditors have reported on
the 2006 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 2007 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.
9. None of the views expressed in this document should be construed as advice to buy or sell a particular
investment.
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Friday, 31st May 2024
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