Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email in the first instance.

 Information  X 
Enter a valid email address

City of London IT (CTY)

  Print      Mail a friend       Annual reports

Wednesday 03 September, 2003

City of London IT

Final Results

City of London Investment Trust PLC
03 September 2003

2 September 2003


         Unaudited Preliminary Results for the year ended 30 June 2003

Total Returns                                     30 June 2003      30 June 2002

  • Net asset value per ordinary share ("NAV")          -11.1%            -11.4%

  • FTSE All-Share Index                                 -9.7%            -14.8%

  • Ordinary share price                                 -9.0%             -5.7%

Dividend (per share)                                     8.07p             7.94p

Extracts from the Chairman's Statement:-


The year under review was a difficult one for the UK stock market. The long
build-up to the war in Iraq adversely affected confidence and the rise in the
oil price increased costs for consumers and businesses. Corporate profitability
continued to be held back by global overcapacity in many industries. Share
prices also faced selling pressure from switches out of equities into bonds by
some insurance companies and pension funds. Overall, the FTSE All-Share total
return for the year to 30 June 2003 was a negative 9.7%, but there was a
significant rise from the lowest point which was reached on 12 March 2003.

Over the last year City of London's share price total return exceeded that of
the FTSE All-Share Index. In addition there was an above average yield of 4.2%.
The net asset value total return was a negative 11.1%, which was an
underperformance of 1.4% relative to the FTSE All-Share Index, but this has to
be seen against the previous year's outperformance of 3.4%.

The gearing during the period when the market was falling was the principal
reason for City of London's underperformance relative to the FTSE All-Share
Index. The Company started the year under review with gearing of 11.5% rising to
17.1% at the market low in March and falling back to 12.3% at the end of June.
The modest level of gearing was maintained in the falling market. With the
benefit of hindsight, the gearing exposure should have been reduced in
anticipation of this fall. The Board believes gearing should enhance shareholder
returns over the longer term and therefore going forward it is intended to adopt
a more proactive gearing policy whilst still limiting the maximum gearing to
approximately 20%.

The medium and long-term record remains good with City of London having
outperformed the FTSE All-Share Index over three, five and ten years.

                                    - MORE -

                                     - 2 -


         Unaudited Preliminary Results for the year ended 30 June 2003


A fourth interim dividend of 2.07p was paid on 29 August 2003, making a total
net dividend for the year of 8.07p. This is an increase of 1.6% over the
previous year.

The Company has increased its dividend every year since 1966 and the Board
recognises the continuing importance of annual dividend growth to shareholders.
For the year to 30 June 2004, the Board is forecasting a minimum increase of
2.6% in the Company's total net dividend to 8.28p, payable at the new quarterly
rate of 2.07p.

Over the years substantial revenue reserves have been built up which, together
with increased investment income this year, have not only enabled the
continuation of the policy to increase dividends to shareholders, but also put
the Company in a strong position for the future.


The investment management fee and other non interest expenses were around 0.45%
of the Company's average assets for the year. This is a level which is very
competitive compared with most investment trusts and with other equity savings

The fall from the previous year's total expense ratio of 0.68% is due to no
investment performance fee being earned by the Investment Manager.


City of London sets out to be an attractive and straightforward long-term
savings vehicle for private investors. The Company is pleased to welcome the new
shareholders who elected to take City of London shares following the
reconstruction of Henderson Geared Income & Growth Trust plc in March 2003.

Over the past three years the Company's share price has of course been adversely
affected by the general fall in the UK stock market, but, taking a ten year
view, returns have been very positive. With dividends reinvested, for example
through a PEP or ISA, the total return over the ten year period from June 1993
would have been 94.6% (see below), double that obtainable from a typical bank or
building society account.

The Board is keen to offer shareholders, and potential shareholders, the widest
possible opportunities to save over the longer term and this year The City of
London Alliance Trust Pension was launched.

                                    - MORE -

                                     - 3 -


         Unaudited Preliminary Results for the year ended 30 June 2003


The cuts in interest rates over the last few months in the USA, Europe and the
UK to the lowest levels for fifty years should help to counter deflationary
forces and to stimulate economic growth over the next year. Against an improved
demand background, the progress that many companies have made in cutting costs
should lead to the growth in profits that is rewarding for investors. Further
encouraging signs are the pick-up in corporate merger and acquisition activity,
evidence from surveys of improving business confidence and the abatement of life
assurance companies selling equities. Longer term, there are concerns as to the
sustainability of the growth in UK consumers' expenditure financed by debt. On
balance, however, given the Board's view of the prospects for the year ahead,
the valuation of UK equities is attractive and therefore the Company remains
moderately geared.

S M de Zoete

2 September 2003

Source: - Association of Investment Trust Companies. The bank / building society
return is the average return with interest reinvested for deposits of £25,000
and over in a representative sample of 20 UK banks and building societies
calculated by Micropal.

                                    - MORE -

                                     - 4 -


         Unaudited Preliminary Results for the year ended 30 June 2003

Statement of Total Return (incorporating the revenue account)
for the year ended 30 June 2003

                                                          Unaudited                               Audited

                                                   Year ended 30 June 2003                Year ended 30 June 2002
                                               Revenue       Capital      Total          Revenue     Capital       Total
                                                 £'000         £'000      £'000            £'000       £'000       £'000
Total capital losses from investments                -      (63,399)   (63,399)                -    (72,856)    (72,856)
Income from fixed asset investments             18,657             -     18,657           17,697           -      17,697
Other interest receivable and similar              170             -        170              156           -         156
                                            ----------    ---------- ----------       ----------  ----------  ----------
Gross revenue and capital losses                18,827      (63,399)   (44,572)           17,853    (72,856)    (55,003)
Management fees                                  (426)         (994)    (1,420)            (516)     (2,535)     (3,051)
Other administrative expenses                    (526)             -      (526)            (400)           -       (400)
                                            ----------   ----------- ----------       ---------- -----------  ----------
Net return/(loss) on ordinary activities
before interest payable and taxation            17,875      (64,393)   (46,518)           16,937    (75,391)    (58,454)
Interest payable                               (1,339)       (3,125)    (4,464)          (1,310)     (3,056)     (4,366)
                                            ----------   ----------- ----------       ---------- -----------  ----------
Net return/(loss) on ordinary activities
before taxation                                 16,536      (67,518)   (50,982)           15,627    (78,447)    (62,820)
Taxation on net return on ordinary                (81)             -       (81)             (85)          85           -
                                           -----------   ----------- ----------      ----------- -----------  ----------
Net return/(loss) on ordinary activities
after taxation                                  16,455      (67,518)   (51,063)           15,542    (78,362)    (62,820)
Preference and preferred ordinary stocks         (190)             -      (190)            (190)           -       (190)
                                           -----------   ----------- ----------      ----------- -----------  ----------
Net return/(loss) attributable to the           16,265      (67,518)   (51,253)           15,352    (78,362)    (63,010)
ordinary shares
                                           -----------   ----------- ----------      ----------- -----------  ----------
Ordinary shares
Three interim payments of 2.00p (2002:        (12,373)             -   (12,373)         (12,192)           -    (12,192)
Fourth interim payment of 2.07p (2002:         (4,343)             -    (4,343)          (4,105)           -     (4,105)
                                           -----------   ----------- ----------      ----------- -----------  ----------
                                              (16,716)             -   (16,716)         (16,297)           -    (16,297)
                                           -----------   ----------- ----------      ----------- -----------  ----------
Transfer from reserves                           (451)      (67,518)   (67,969)            (945)    (78,362)    (79,307)
                                                ======        ======     ======           ======      ======      ======
Return/(loss) per ordinary share (note 1)        7.87p      (32.66)p   (24.79)p            7.48p    (38.18)p    (30.70)p
                                                ======        ======     ======           ======      ======      ======

The revenue columns of this statement represent the revenue accounts of the

                                    - MORE -

                                     - 5 -


         Unaudited Preliminary Results for the year ended 30 June 2003

Balance Sheet
at 30 June 2003
                                                                               Unaudited               Audited
                                                                                 30 June               30 June
                                                                                    2003                  2002
                                                                                   £'000                 £'000
Fixed asset investments
Listed at market value in the United Kingdom                                     440,922               513,924
Listed at market value overseas                                                    9,753                     -
Investment in subsidiary undertakings                                                347                   347
                                                                           -------------         -------------
                                                                                 451,022               514,271
                                                                           -------------         -------------

Current assets
Debtors                                                                            2,113                 2,332
Cash at bank                                                                       2,599                    52
                                                                           -------------         -------------
                                                                                   4,712                 2,384
                                                                           -------------         -------------
Creditors: amounts falling due within one year                                   (6,470)               (7,623)
                                                                           -------------         -------------
Net current liabilities                                                          (1,758)               (5,239)
                                                                           -------------         -------------

Total assets less current liabilities                                            449,264               509,032

Creditors: amounts falling due after more than one year                         (46,000)              (46,000)
                                                                           -------------         -------------
Total net assets                                                                 403,264               463,032
                                                                                 =======               =======

Capital and reserves
Called up share capital                                                           54,539                53,398
Share premium account                                                             35,309                28,249
Other capital reserves                                                           302,545               370,063
Revenue reserve                                                                   10,871                11,322
                                                                           -------------         -------------
Shareholders' funds (including non-equity interests                              403,264               463,032
of £2,086,000)
                                                                                 =======               =======

Net asset value per ordinary share                                               191.21p               224.58p
                                                                                 =======               =======

                                    - MORE -

                                     - 6 -


         Unaudited Preliminary Results for the year ended 30 June 2003

Cash Flow Statement
for the year ended 30 June 2003
                                                                    Unaudited                    Audited
                                                                    2003          2003          2002          2002
                                                                   £'000         £'000         £'000         £'000

Net cash inflow from operating activities                                       15,386                      15,374

Servicing of finance
Debenture interest paid                                          (4,265)                     (4,265)
Bank and loan interest paid                                        (193)                        (96)
Dividends paid on preference and preferred ordinary stock          (190)                       (190)
                                                              ----------                  ----------
Net cash outflow from servicing of finance                                     (4,648)                     (4,551)

Withholding and income tax recovered                                   7                          18
                                                              ----------                  ----------
Net tax recovered                                                                    7                          18

Financial investment
Purchases of investments                                        (40,065)                    (71,264)
Sales of investments                                              43,778                      76,411
                                                              ----------                  ----------
Net cash inflow from financial investment                                        3,713                       5,147

Equity dividends paid                                                         (16,478)                    (16,259)
                                                                            ----------                  ----------
Net cash outflow before financing                                              (2,020)                       (271)

Net cash outflow from loans                                        (214)                           -
Proceeds from issue of ordinary shares                             4,742                           -
Cost of repurchases of ordinary shares                                 -                       (345)
                                                              ----------                  ----------
Net cash inflow/(outflow) from financing                                         4,528                       (345)
                                                                            ----------                  ----------
Increase/(decrease) in cash                                                      2,508                       (616)
                                                                                ======                      ======

                                    - MORE -

                                     - 7 -


         Unaudited Preliminary Results for the year ended 30 June 2003


1.     Return/(loss) per Ordinary Share

       Revenue return per ordinary share is based on earnings attributable to the ordinary shares of £16,265,000 (2002:
       £15,352,000) and on the weighted average number of ordinary shares in issue during the year of 206,745,219 (2002:
       Capital loss per ordinary share is based on net capital losses for the year of £67,518,000 (2002: £78,362,000)
       and on the weighted average number of ordinary shares in issue during the year of 206,745,219 (2002:

2.     Issued Share Capital

       There were 209,813,762 ordinary shares of 25p in issue at 30 June 2003 (30 June 2002: 205,251,018) for the
       purpose of calculating the net asset value per ordinary share.

3.     Share Buy-Backs

       During the year the Company made no purchases in the market for cancellation of its own issued ordinary shares.

4.     Share Allotments

       During the year the Company issued 4,562,744 ordinary shares at prices ranging from 166.22p to 202.00p per share.

5.     2003 Accounts

       The preliminary figures for the year ended 30 June 2003 are compiled from an extract of the latest accounts and
       do not constitute statutory accounts as defined by section 240 of the Companies Act 1985. These accounts have not
       yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them.

6.     2002 Accounts

       The figures and financial information for the year ended 30 June 2002 are compiled from an extract of the latest
       published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered
       to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a
       statement under either section 237(2) or section 237(3) of the Companies Act 1985.

7.     Annual Report

       The full annual report and accounts will be posted to shareholders in September 2003 and copies will be available
       thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. The Annual
       General Meeting will be held on Friday 17 October 2003 at 3.00 pm.

                                    - MORE -

                                     - 8 -


         Unaudited Preliminary Results for the year ended 30 June 2003

The 40 largest equity investments (convertibles and all classes of equity in any
one company being treated as one investment) were as follows :

                                           Valuation at                                                  Valuation at
                                           30 June 2003                                                  30 June 2003
                                                  £'000                                                         £'000

BP                                               27,947       Scottish & Southern Energy                        4,680
HSBC                                             26,635       Anglo American                                    4,625
Shell Transport & Trading                        24,400       Legal & General                                   4,498
GlaxoSmithKline                                  23,849       Johnston Press                                    4,243
Vodafone                                         20,145       Wolseley                                          4,022
Royal Bank of Scotland                           19,331       Boots                                             3,988
Barclays                                         13,500       Prudential                                        3,670
HBOS                                             12,630       Reckitt Benckiser                                 3,668
AstraZeneca                                      11,786       Next                                              3,593
British American Tobacco                         11,000       Imperial Tobacco                                  3,520
Lloyds TSB                                       10,111       Slough Estates                                    3,418
Diageo                                            9,382       Bovis Homes                                       3,408
Tesco                                             7,893       Scottish Power                                    3,276
Land Securities                                   6,838       Rodamco Europe                                    3,171
National Grid Transco                             6,782       Smith & Nephew                                    3,134
Aviva                                             6,206       Reed Elsevier                                     3,026
Rio Tinto                                         5,700       BSkyB                                             3,022
Unilever                                          5,476       Allied Domecq                                     3,006
Kingfisher                                        5,041       Gallaher                                          2,975
BT                                                4,890       Tomkins                                           2,724

These investments represent 73.49% of the portfolio.

                                    - ENDS -

For further information please contact :

Job Curtis
Portfolio Manager, The City of London Investment Trust plc
Telephone: 020 7818 4367

Stephen Westwood
Head of Investment Trusts, Henderson Global Investors
Telephone: 020 7818 5517

Stephen Phillips
Associate Director, Investment Trusts, Henderson Global Investors
Telephone: 020 7818 6417


Vicki Staveacre
Henderson Press Office
Telephone: 020 7818 4222

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