Interim Results
Henderson TR Pacific Inv. Trust PLC
05 August 2003
4 August 2003
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
Henderson TR Pacific Investment Trust plc ('Henderson TR Pacific') seeks capital
growth from Pacific region stock markets and economies, excluding Japan and
Australasia.
Henderson TR Pacific, one of the largest investment trusts specialising in this
region, announces interim results for the half year ended 30 June 2003.
Key Points:
• Strong rallies since May in region's markets after uncertainties over Iraq
and SARS
• Solid gains overall by region's stock markets on US recovery hopes
• Net assets per share up 10.6% over first six months of 2003
• Gearing increased by new three-year £20m facility
• David Robins to succeed Iain Dale as Chairman, who retires at next AGM
after 10 years as Chairman; Mr Robins, previously Chairman and Chief
Executive of ING Barings, knows Asia well.
(Unaudited) (Audited) (Unaudited)
30 June 2003 31 Dec 2002 30 June 2002
Net asset value 70.9p 64.1p 82.3p
Share Price 63.5p 59.8p 72.5p
Discount 10.4% 6.7% 11.9%
Gearing* 11.0% 1.3% 6.3%
Performance to 30 June 2003
Total returns 6 months 12 months
Net asset value (i) 10.6% -13.4%
Share price (i) 7.5% -11.1%
Peer group (i) and (ii) 11.5% -9.6%
Benchmark Index (iii) 7.4% -12.5%
Sources: please see page 9
(*) Gearing is defined here as borrowings, less cash balances and deposits, as
a percentage of shareholders' funds.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
Regarding prospects, Iain Dale, the Chairman, commented:
'We believe Far East stock markets continue to look attractive, particularly in
the light of recent weakening of the US dollar. The new £20 million loan was
fully utilised by the end of June as we increased our gearing into the rising
market.'
'China continues to achieve notable advances creating opportunities for
investment throughout the region. Our regional economies are well placed to gain
from a global upturn and are additionally seeing recovery and growth in their
domestic markets.'
Extract from the Chairman's Half Year Statement:-
Over the first six months of 2003 investors in Asian stock markets had to
contend with uncertainty caused by the war in Iraq and the adverse effects of
SARS. Both weighed heavily on sentiment until April but there was a strong rally
in the region's stock markets in May and June as these concerns diminished.
Performance
Overall, the region's stock markets achieved solid gains as investors became
more hopeful of recovery in the US economy as interest rates were cut to
extremely low levels by historic standards. Over the half year ended 30 June
2003 we achieved an increase in net assets per share of 10.6% to 70.9p, compared
with a value of 64.1p at the end of December 2002. This can be compared with a
positive total return of 7.4% for the benchmark index, the MSCI AC Far East
(Free) ex-Japan Index.
Borrowings
In May 2003 a new three year flexible multi-currency facility was agreed with
ING Bank NV for £20 million. This was fully drawn down by the end of June as we
increased our gearing into the rising market. The new facility allows borrowings
to be utilised in a currency of our choosing, which enables us to match them
more closely to our currency of investment, thus removing an element of exchange
risk from the portfolio.
Directors
After thirteen years as a director of this company I will be retiring at next
year's Annual General Meeting. This will mark my tenth anniversary as Chairman.
I am delighted that David Robins, who joined the Board last year, has agreed to
become our new Chairman. David was most recently Chairman and Chief Executive
Officer of ING Barings. He knows Asia well.
It is important that we maintain a balance of geographical and investment
industry skills among your directors so that the Board as a whole may actively
contribute to the company's policy and governance. Therefore we continue to
identify candidates of high quality as potential directors in order that you may
in the future continue to be served by a strong, effective and independent
Board.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
Share Repurchases
Although the share price discount to assets widened from 6.7% at the end of
December 2002 to 10.4% on 30 June 2003, there has been a general narrowing of
discounts in our region compared to higher levels in recent years. There was,
however, volatility in the level of discount between these dates. Our policy is
to buy in shares for cancellation at such times both to reduce this volatility
and to enhance the net asset value of the portfolio. Only one such purchase was
made over our first half year when in April we repurchased 240,000 shares at a
price of 50.5p per share, a discount of 15.6%.
Dividend
As usual no dividend has been declared at the interim stage. The company's
policy is to pay dividends sufficient to retain its status as an investment
trust. Our focus on capital growth opportunities means shareholders should not
expect any significant return from dividend payments.
Outlook
The world economy may take some time to recover fully but China continues to
achieve notable advances creating opportunities for investment throughout the
region. Our regional economies are well placed to gain from a global upturn and
are additionally seeing recovery and growth in their domestic markets.
Iain Dale CBE
Chairman
4 August 2003
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
STATEMENT OF TOTAL RETURN (incorporating the revenue account)
for the half year ended 30 June 2003
(Unaudited) (Unaudited) (Audited)
Half year ended 30 June 2003 Half year ended 30 June 2002 Year ended 31 December 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
--------- -------- -------- --------- -------- -------- -------- -------- --------
Total capital gains/(losses)
on investments - 12,684 12,684 - 6,424 6,424 - (29,768) (29,768)
Income from fixed asset 2,379 - 2,379 2,012 - 2,012 3,551 - 3,551
investments
Other interest receivable
and similar income 13 - 13 70 - 70 93 - 93
-------- -------- -------- -------- -------- -------- -------- -------- --------
Gross revenue and capital
gains/(losses) 2,392 12,684 15,076 2,082 6,424 8,506 3,644 (29,768) (26,124)
Management fee (273) (445) (718) (424) (425) (849) (621) (1,102) (1,723)
Other administrative (227) - (227) (273) - (273) (517) - (517)
expenses
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss) on
ordinary activities before
interest payable
and taxation 1,892 12,239 14,131 1,385 5,999 7,384 2,506 (30,870) (28,364)
Interest payable (21) (61) (82) (111) (331) (442) (132) (395) (527)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss) on
ordinary activities before 1,871 12,178 14,049 1,274 5,668 6,942 2,374 (31,265) (28,891)
taxation
Taxation on net return on
ordinary activities (571) 351 (220) (334) 180 (154) (797) 377 (420)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss) on
ordinary activities after 1,300 12,529 13,829 940 5,848 6,788 1,577 (30,888) (29,311)
taxation
Final dividend 2002: 0.60p - - - - - - (1,223) - (1,223)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Transfer to/(from) reserves 1,300 12,529 13,829 940 5,848 6,788 354 (30,888) (30,534)
======== ======== ======== ======== ======== ======== ======== ======== ========
Return/(loss) per ordinary
share (Note 1) 0.64p 6.15p 6.79p 0.46p 2.86p 3.32p 0.77p (15.13)p (14.36)p
The revenue columns of this statement represent the revenue accounts of the
company.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
Balance Sheet
As at 30 June 2003
(Unaudited) (Unaudited) (Audited)
At 30 June At 30 June At 31 December
2003 2002 2002
£'000 £'000 £'000
------------- ------------- -------------
Fixed asset investments:
Listed at market value - overseas 159,815 179,327 133,646
Unlisted - directors' valuation 142 154 146
---------- ---------- ----------
159,957 179,481 133,792
---------- ---------- ----------
Current assets
Debtors 323 1,139 177
Bank balances and short term deposits 3,623 4,478 5,482
---------- ---------- ----------
3,946 5,617 5,659
Creditors: amounts falling due within one year (19,583) (16,976) (8,838)
---------- ---------- ----------
Net current liabilities (15,637) (11,359) (3,179)
---------- ---------- ----------
Total net assets 144,320 168,122 130,613
---------- ---------- ----------
Capital and reserves
Called-up share capital 10,180 10,210 10,192
Capital redemption reserve 5,726 5,696 5,714
Special reserve 99,491 99,800 99,613
Other capital reserves 22,343 46,550 9,814
Revenue reserve 6,580 5,866 5,280
---------- ---------- ----------
Equity shareholders' funds 144,320 168,122 130,613
========== ========== ==========
Net asset value per ordinary share (Note 2) 70.9p 82.3p 64.1p
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
Cash Flow Statement
for the half year ended 30 June 2003
(Unaudited) (Unaudited) (Audited)
Half year Half year Year
ended ended ended
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
----------- ----------- -----------
Net cash inflow from operating activities 1,036 542 533
Interest paid (77) (861) (952)
Net tax paid - - (80)
Net cash (outflow)/inflow from financial investments (13,873) (3,682) 5,284
Equity dividends paid (1,223) (1,020) (1,020)
Cash withdrawn from short term deposit - 9,133 9,133
---------- ---------- ----------
Net cash (outflow)/inflow before financing (14,137) 4,112 12,898
Net cash inflow/(outflow) from financing 12,105 (5,707) (12,393)
---------- ---------- ----------
(Decrease)/increase in cash (2,032) (1,595) 505
========== ========== ==========
Reconciliation of operating revenue to net cash inflow from
operating activities
Net revenue before interest payable and taxation 1,892 1,385 2,506
Increase in accrued income (155) (286) (7)
Decrease in other debtors 8 36 30
Decrease in creditors (23) (14) (1)
Management charge taken to other capital reserves (445) (425) (1,102)
Overseas withholding tax (220) (154) (301)
Taiwanese stock dividends (21) - (592)
---------- ---------- ----------
Net cash inflow from operating activities 1,036 542 533
========== ========== ==========
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash as above (2,032) (1,595) 505
Cash inflow from short term deposits - (9,133) (9,133)
Cash (inflow)/outflow from financing (12,227) 5,707 12,206
---------- ---------- ----------
Change in net debt resulting from cash flows (14,259) (5,021) 3,578
Exchange movements 112 879 1,167
---------- ---------- ----------
Movement in net debt during the period (14,147) (4,142) 4,745
Net debt at beginning of the period (1,664) (6,409) (6,409)
----------- ----------- ----------
Net debt at the end of the period (15,811) (10,551) (1,664)
========== ========== ==========
Represented by:
Cash at bank and short term deposits less bank overdrafts 3,588 3,882 5,482
Debt falling due within one year (19,399) (14,433) (7,146)
---------- ---------- ----------
(15,811) (10,551) (1,664)
========== ========== ==========
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
Notes
1. Return/(loss) per ordinary share
Revenue return per ordinary share is based on earnings of £1,300,000
(half year ended 30 June 2002: £940,000; year ended 31 December 2002:
£1,577,000) and on the weighted average number of ordinary shares in issue
during the period of 203,759,823 (half year ended 30 June 2002:
204,193,359; year ended 31 December 2002: 204,112,811).
Capital return per ordinary share is based on net capital gains of
£12,529,000 (half year ended 30 June 2002: gains of £5,848,000; year ended
31 December 2002: losses of £30,888,000) and on the weighted average number
of ordinary shares in issue during the period of 203,759,823 (half year
ended 30 June 2002: 204,193,359; and year ended 31 December 2002:
204,112,811).
2. Net asset value per ordinary share
Net asset value per ordinary share is calculated on the basis of
shareholders' funds attributable to ordinary shares divided by the number
of ordinary shares in issue at 30 June 2003, being 203,603,359 (30 June
2002: 204,193,359; 31 December 2002: 203,843,359).
3. Share Buy-Backs
The company was granted authority to repurchase up to 30,372,660 ordinary
shares at the Annual General Meeting held on 14 April 2003. As at 4 August
2003 240,000 shares had been repurchased under this authority.
4. 2002 Accounts
The figures and financial information for the year ended 31 December 2002
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 include 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.
5. Interim Report
The Interim Report will be posted to shareholders in mid-August and
thereafter copies will be available from the registered office - 4
Broadgate, London EC2M 2DA.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
APPENDIX 1
Geographical Distribution of the Investment Portfolio
As at 30 June 2003 As at 31 December 2002
Company Index* Company Index*
South Korea 24.9% 27.5% 29.3% 29.2%
Taiwan 20.2% 17.7% 15.4% 17.1%
China 12.8% 9.6% 11.6% 8.8%
Hong Kong 11.0% 20.7% 12.3% 21.7%
Thailand 11.1% 3.1% 11.1% 2.3%
The Philippines 0.8% 0.9% 0.9% 0.6%
Malaysia 8.4% 7.5% 9.7% 7.6%
Singapore 9.2% 11.0% 8.2% 11.2%
Indonesia 0.0% 2.0% 0.0% 1.5%
Vietnam 1.6% 0.0% 1.5% 0.0%
--------- --------- --------- ---------
100.0% 100.0% 100.0% 100.0%
========= ========= ========= =========
* MSCI AC Far East (Free) ex-Japan Index Country Weightings
APPENDIX 2
Stock Market Performance
Half year ended 30 June 2003
Local Currency Sterling Adjusted
South Korea 6.8% 3.4%
Taiwan 9.4% 7.3%
China 20.7% 17.7%
Hong Kong 2.7% 0.2%
Thailand 29.6% 29.6%
The Philippines 20.1% 17.0%
Malaysia 7.1% 4.5%
Singapore 12.5% 8.1%
Indonesia 19.0% 25.9%
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
APPENDIX 3
Sector Analysis of Investments at 30 June 2003
As at 30 June 2003 As at 31 December 2002
Company Index* Company Index*
Consumer Discretionary 16.4% 10.1% 19.7% 8.8%
Consumer Staples 4.4% 3.1% 5.1% 2.7%
Energy 3.7% 2.9% 3.9% 2.3%
Financials and Property 22.5% 26.3% 25.2% 28.9%
Healthcare 0.0% 0.2% 0.0% 0.2%
Industrials and Transport 16.7% 12.0% 10.4% 11.5%
Information Technology 18.0% 22.3% 16.9% 21.2%
Materials 4.3% 6.1% 6.3% 6.4%
Telecommunication Services 8.4% 10.0% 8.3% 10.9%
Utilities 5.6% 7.0% 4.2% 7.1%
--------- --------- --------- --------
100.0% 100.0% 100.0% 100.0%
========= ========= ========= ========
* MSCI AC Far East (Free) ex-Japan Index Sector Weightings
Sources relate to notes (i) to (iii) on page 1.
(i) Source: AITC Services Ltd (net dividends reinvested).
(ii) The company's performance is compared against a group of leading
investment trust competitors. Source: AITC Services Ltd (net dividends
reinvested).
(iii)MSCI AC Far East (Free) ex-Japan Index: (gross dividends reinvested).
Source: Datastream
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
APPENDIX 4
List and Valuation of Investments as at 30 June 2003
% of Market % of Market
Investments Value Investments Value
£'000 £'000
CHINA 12.8 20,499 PHILIPPINES 0.8 1,245
Beijing Capital International Airport 1,767 Ayala Corporation 1,245
China Heartland Fund 278
China Mobile 2,285 VIETNAM 1.6 2,543
China Shipping Development 2,816
China Travel 1,393 The Vietnam Fund 99
CNOOC 3,954 Vietnam Enterprise Investment Fund 2,444
Global Bio-Chem 3,490
Huaneng Power International 4,516 SOUTH KOREA 24.9 39,814
TAIWAN 20.2 32,288 Daewoo Shipbuilding 2,633
Hyundai Motor 3,214
Ambit Microsystems 2,056 Kookmin Bank 2,741
Compal Electronics 2,603 Korea Electric Power 1,920
CTCI Corporation 1,970 KT Corporation 2,668
Delta Electronics 1,849 KT Freetel 1,575
Evergreen Marine 1,726 LG Chem 2,438
Fubon Financial 2,780 LG Electronics 2,276
Mediatek 2,908 Lotte Confectionery 1,598
OptimaxTechnology 3,264 Posco 1,528
Premier Image Technology 2,146 Samsung Electronics 5,411
President Chain Store 1,945 Samsung Fire & Marine 2,124
Realtek Semiconductor 1,976 Shinhan Financial 3,164
Taiwan Paiho 1,098 Shinsegae 3,780
Taiwan Semiconductor 4,010 SK Telecom 2,744
United Microelectronics 1,957
SINGAPORE 9.2 14,660
HONG KONG 11.0 17,622
Capitaland 2,056
ChinaVest Partnership* 142 Great Eastern 2,355
Hong Kong & China Gas 2,443 Neptune Orient Lines 3,577
i-Cable Communications 1,113 Noble Group 1,864
Johnson Electric 4,812 Singapore Press 2,021
Kingboard Chemicals 2,138 Venture 2,787
Li & Fung 2,493
Swire Pacific 2,646 THAILAND 11.1 17,827
Television Broadcasts 1,835
BEC World 1,841
MALAYSIA 8.4 13,459 Italian-Thai Development 2,424
Kasikornbank 2,474
AMMB 1,944 PTT Exploration and Production 1,862
Commerce Asset 1,210 Shin Corporation 2,220
Courts Mammoth 1,407 Siam Cement 2,897
Maxis Communications 1,932 Siam Commercial Bank 2,491
Roadbuilder 1,595 Tisco Finance 1,618
Resorts World 3,016
SP Setia 2,355 ----------
TOTAL INVESTMENTS 100.0 159,957
* Unlisted Investment ==========
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the half year ended 30 June 2003
- ENDS -
For further information contact:
Michael Watt, Director and Manager
Iain Dale, Chairman
Tel: 020 7818 1818
David Hardy
Binns & Co. PR
Tel: 020 7786 9600
or
Vicki Staveacre
Henderson Press Office
Telephone: 020 7818 4222
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