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JP Morgan Flem Inc (JPI)

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Thursday 17 April, 2003

JP Morgan Flem Inc

Final Results

JP Morgan Flem Income & Capital Inv
17 April 2003


                          STOCK EXCHANGE ANNOUNCEMENT

17th April 2003

The Board today announces the preliminary results of the Company for the period
ended 28th

February 2003.

Portfolio Performance

Since the Company's shares started trading in March 2002, UK equity markets have
been subject to extreme volatility, due to accounting scandals in the US,
concerns about the sustainability of economic growth, and unease about the
situation in Iraq.

It is therefore not surprising, if disappointing, to have to report that the
total return on net assets (shareholders' funds) between 6th March 2002 and 28th
February 2003 was -17.2%, slightly worse than the total return of -17.0% from
the Company's composite benchmark of 67.5% FTSE 350 Index (excluding Investment
Trusts) and 32.5% Merrill Lynch 5-10 year Sterling Corporate Bond Index.

The UK equity part of the portfolio performed relatively well, returning -22.7%,
compared with

-28.3% from its benchmark, and the bond portfolio returned 10.0%, compared with
10.2% from its benchmark. However, the Company's gearing reduced the overall
return on the portfolio by 4.9%.

The Company benefited by being underweight in equities relative to its benchmark
for much of 2002, as UK markets fell rapidly. However, as equities fell to what
appeared to be attractive levels, the Investment Manager restored the equity
weighting towards the benchmark level in February 2003.

Return on Packaged Units

The total return on the packaged units, with net dividends reinvested, was -
24.5% during the period. This differs from the return on net assets because the
units derive a greater proportion of their performance from the ordinary shares
and have therefore been more affected by the negative impact of gearing.

The Investment Trust Market

As if the problems of economies and stock markets were not enough, UK investment
trusts in general, and split capital trusts in particular, have suffered from
the well publicised difficulties of a small number of highly geared split
capital trusts. These trusts have been unable to withstand the steep and
continuing fall in share prices and have had to restructure or liquidate. The
Financial Services Authority, which is investigating allegations of mis-selling,
has proposed various restrictions on the freedom of investment trusts to manage
their portfolios, of which some seem sensible and others do not. Consultation is
in progress and the hope is that the eventual outcome will be acceptable.
Meanwhile the share prices of the more stable split capital trusts, such as the
Company, have seen some welcome recovery since the Company's year end.


The Board believes that UK equities offer reasonable value at current market
levels, and the recent rebalancing of the portfolio, along with the Investment
Manager's focussed approach, leaves the Company well placed to take advantage of
an equity market rally.


The Company's year end is 28th February. For the purpose of its formation, its
year end was originally 31st January. Accounts were therefore produced for the
period from 10th April 2001, the Company's date of incorporation, to 31st
January 2002. Those accounts were approved at the Company's first Annual General
Meeting, which was held prior to the reconstruction, on 28th February 2002.
Regulations require that this report covers the period from 1st February 2002 to
28th February 2003, although the Company was not effectively in operation until
6th March 2002.

Revenue and Dividends

Revenue after taxation for the period was £5,969,000 and earnings per ordinary
share were 8.00p.

A fourth interim dividend of 1.80p per ordinary share was paid on 1st April
2003, to ordinary shareholders and unitholders on the register as at the close
of business on 28th February 2003. That dividend, when added to the three
interim dividends of 1.70p per ordinary share previously paid by the Company,
gives a total for the period from 6th March 2002 to 28th February 2003 of 6.90p
per ordinary share. This is in accordance with the Directors' intentions, as
stated in the Prospectus dated 24th January 2002.

Share Repurchase Facility

On 23rd January 2002, an extraordinary general meeting of the Company was held
which granted the Directors authority to repurchase the Company's shares for
cancellation, such authority to expire at the earlier of 22nd July 2003 or the
conclusion of the Annual General Meeting of the Company in 2003.

At the end of February 2003, the Company had repurchased 275,000 zero dividend
preference shares and up to the date of this report has repurchased a further
490,000. Directors continue to believe that this mechanism will be of benefit to
shareholders and are therefore proposing that the authority be renewed for a
further period at the forthcoming Annual General Meeting.

Annual General Meeting

This year's Annual General Meeting will be held on 22nd May 2003 at 11.00 a.m.
at the Insurance Hall, 20 Aldermanbury, London, EC2V 7HY. This is the second
Annual General Meeting of the Company, the first having been held on 28th
February 2002, as noted above.

CKR Nunneley

Chairman          17th April 2003

JPMorgan Fleming Income & Capital Investment Trust plc
Unaudited figures for the period ended 28th February 2003

Statement of Total Return (Unaudited)

                                                     Period from 1st February 2002   Period to 31st January 2002
                                                     to 28th February 2003
                                                        Revenue    Capital     Total Revenue     Capital     Total
                                                          £'000      £'000     £'000     £'000     £'000     £'000

Realised losses on investments                                -   (10,772)  (10,772)         -         -         -
Unrealised losses on investments                              -   (17,054)  (17,054)         -         -         -
Currency losses on cash and short term deposits held
during the period                                             -       (14)      (14)         -         -         -
Franked dividends                                         3,925          -     3,925         -         -         -
UK interest                                               3,060          -     3,060         -         -         -
Overseas dividends                                          733          -       733         -         -         -
Call income                                                 381          -       381         -         -         -
Underwriting commissions                                      2          -         2         -         -         -
Deposit interest                                            156          -       156         -         -         -
                                                        _______   ________   _______   _______   _______   _______

Gross return                                              8,257   (27,840)  (19,583)         -         -         -

Manager's remuneration                                    (495)      (741)   (1,236)         -         -         -

Other administrative expenses                             (343)          -     (343)         -         -         -

Interest Payable                                          (573)    (1,338)   (1,911)         -         -         -

                                                        _______    _______   _______   _______   _______   _______

Net return before taxation                                6,846   (29,919)  (23,073)         -         -         -

Taxation                                                  (877)        624     (253)         -         -         -

                                                         ______    _______   _______   _______   _______   _______

Return after taxation                                     5,969   (29,295)  (23,326)         -         -         -

Return attributable to zero dividend preference               -    (4,906)   (4,906)         -         -         -

Dividend on ordinary shares                             (5,151)          -   (5,151)         -         -         -

                                                         ______    _______   _______   _______   _______   _______

Transfer to/(from) reserves                               818     (34,201)  (33,383)         -         -         -

Return per ordinary share                                 8.00p   (45.80)p  (37.80)p         -         -         -

JP Morgan Fleming Income & Capital Investment Trust plc

Unaudited figures for the period ended 28th February 2003

BALANCE SHEET                                                        At 28th February       At 31st January
                                                                                 2003                  2002
                                                                                £'000                 £'000

Investments at valuation                                                      140,770                     -

Net current assets                                                              1,437                    12

Creditors: amounts falling due after more than one year                      (33,000)                     -

                                                                               ______                ______

Total net assets                                                              109,207                    12
                                                                                =====                 =====
Net asset value per ordinary share                                              55.0p                     -

                                                                                 2003                  2002
                                                                                £'000                 £'000

Net cash inflow from operating activities                                       4,900                     -

Net cash outflow from servicing of finance                                    (1,462)                     -

Net cash outflow from capital expenditure and financial                      (37,380)                     -

Total equity dividends paid                                                   (3,807)                     -

Net cash inflow from financing                                                 39,744                     -
                                                                              _______               _______
Increase in cash for the period                                                 1,995                     -
                                                                                =====                 =====

The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985.

The comparative financial information is based on the statutory accounts for the
period ended 31 January 2002. These

accounts, upon which the auditors issued an unqualified opinion, have been
delivered to the Registrar of Companies.


17th April 2003

                      This information is provided by RNS
            The company news service from the London Stock Exchange