3i UK Select Trust Ld
22 February 2000
FINAL RESULTS AND PROPOSED DIVIDEND
The unaudited figures for the year ended 31 December 1999 are as follows:
31 December 1999 31 December 1998
Dividends and interest 2,498 2,222
Commissions 4 3
Revenue 2,053 1,764
Amount absorbed by dividends (1,764) (1,507)
Amount transferred to revenue
reserves - 289 257
Interim, final and special
dividends per ordinary share 3.06p 2.60p
Earnings per ordinary share 3.56p 3.03p
31 December 1999 31 December 1998
Market value of investments 86,036 76,694
Total net assets 84,635 73,556
Net asset value per ordinary
share at 1Op each 146.9p 127.6p
The directors propose that ordinary shareholders should be offered the right to
elect to receive new ordinary shares in lieu of the cash final and special
The Chairman, Advocate JM Le Pelley commented as follows:
I am able to report on a year that produced good returns for shareholders.
During the year the price of Shares in your company rose by 20.1% and a
shareholder who elected to receive scrip dividends enjoyed a total return of
22.9%. Over the year as a whole the portfolio produced a total return,
combining capital growth and income earned, of 17.6% compared to the total
return of the All-Share of 24.2%.
The price at which shares in your company trade stands at a discount to the
net asset value of the shares. The size of this discount in absolute terms
and relative to the peer group of similar companies is monitored by the
Board. In recent years the Board have instituted the programme of share buy-
backs and branded the Company with the name of the Manager. In 1999 the
discount narrowed from 20% to 16% so contributing to the healthy return
enjoyed by shareholders. During the year the company bought back 845,000
shares, more than matching the number of shares issued in scrip dividends.
The Board's policy remains to buy-in shares to match scrip issuance but
they will also consider buying-in shares should the discount become
Earnings per share for the year rose from 3.03p to 3.56p per share. The bulk
of these earnings represent increased dividend payments made by portfolio
companies and this reflects continuing real dividend growth in the UK stock
market. Many companies are currently reshaping their balance sheets and the
portfolio continued to receive special dividends in addition to
ordinary payments. These special dividend receipts are by their
nature non-recurring. In addition interest income was also higher than in
the previous year. Against this background the Board recommend a final ordinary
dividend of 1.88p, an increase of 4.4%. If approved by shareholders
ordinary dividends paid will have increased by 4.2% over 1998. The Board
also propose the payment of a special dividend of 0.35p reflecting the
non-recurring income. The proposed dividends, combined with the interim
already paid, represent an increase of 17.7% on payments made last year.
Since the year ended there have been sharp movements in world stock
markets. In general some of the over-valuation which had appeared at the
year end has dissipated although some areas of the market still remain fully
valued. From these lower levels the Board would expect a steady performance
over the balance of the year although continuing short term volatility
cannot be ruled out.
The directors have decided to declare a final dividend of 1.88p (1998:
1.80p) and a special dividend of 0.35p for the year ended 31 December 1999
making a total dividend of 3.06p, (1998: 2.60p).
The final and special dividends will be payable on 5 May 2000 on such of
the ordinary shares in respect of which the holders had not, prior to 12
April 2000, elected to receive an allotment of new ordinary shares.
The record date for the final dividend in respect of the year ended
31 December 1999 is 3 March 2000.