Information  X 
Enter a valid email address

TR European Growth (TRG)

  Print      Mail a friend       Annual reports

Monday 21 February, 2005

TR European Growth

Interim Results

TR European Growth Trust PLC
21 February 2005


21 February 2005


                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2004


•     Share price rises over 22%

•     NAV up by more than 17%

•     Discount narrows by nearly 4%

•     Strong start to the financial year



HIGHLIGHTS

       Unaudited                                                               Unaudited      Audited  % change
     31 December                                                             31 December      30 June
            2003 Assets                                                             2004         2004
           £'000                                                                   £'000        £'000
         304,246 Total net assets                                                380,961      339,990     +12.1

               % Divided between:                                                      %            %
            88.9   Quoted equities                                                  89.1         94.4
             6.5   Unquoted equities                                                 3.8          5.8
             0.1   Unquoted convertibles                                             0.1          0.1
             4.5   Net current assets/(liabilities)                                  7.0        (0.3)
         -------                                                                 -------      -------
           100.0                                                                   100.0        100.0
         =======                                                                 =======      =======

                 Net asset value per:
         197.51p   Ordinary share (undiluted)                                    262.19p      223.93p     +17.1

         166.25p Ordinary share price                                            235.50p      192.50p     +22.3
          15.83%   Discount to NAV (undiluted)                                    10.18%       14.04%

                 Benchmark Index                                                                          +15.3

                 (50% HSBC Smaller Europe (ex UK) Total Return Index/
                 50% S&P/Citigroup EMI Europe (ex UK) Total Return
                 Index)

          223.10 HSBC Smaller Europe (ex UK) Total Return Index  - £              280.14       238.64     +17.4
          272.15 S&P/Citigroup EMI Europe (ex UK) Total Return Index - £          328.38       289.86     +13.3
          384.96 FTSE World Europe (ex UK) Total Return Index - £                 438.21       391.63     +11.9
                                                                            

                            
                                    - MORE -


                                     - 2 -


                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2004


Extracts from the Chairman's Statement


Results

The six months to the end of December have been another strong period for
European equity markets. Smaller company indices once again outperformed their
larger brethren and the strengthening of the Euro against sterling significantly
improved returns for sterling-based investors.  Our new benchmark index rose by
15.3% on a total return basis in sterling and I am pleased to report that your
Company's net asset value per share rose by 17.1% over the same period. The
share price rose even more, up 22.3%, as the discount to the net asset value per
share narrowed to just over 10%.

The Board is pleased to see that its' initiatives to reduce the discount,
including the more active share repurchasing policy announced in December, have
continued to yield results.  The directors' authority to buy back stock for
cancellation was refreshed at the AGM.  During the six months to 31 December
2004, 6,534,088 shares were repurchased for cancellation. The Board remains
committed to taking the measures necessary to ensure that the shares do not
trade at an excessive discount.


Prospects

The strong rise in stock markets is increasingly in contrast with the somewhat
more mixed outlook on the economic front.  This suggests that an element of
caution is required; however, we believe that our manager's approach of careful
stockpicking should allow us to take advantage of the opportunities that any
period of uncertainty inevitably generates.  We have made a good start to our
financial year and I look forward to updating you on our progress with our full
year results.



                                    - MORE -



                                     - 3 -


                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2004


Group Statement of Total Return (incorporating the revenue account)
for the half year ended 31 December 2004


                                    (Unaudited)                       (Unaudited)                       (Audited)
                            Half year ended 31 December       Half year ended 31 December          Year ended 30 June
                                       2004                              2003                             2004
                        Revenue    Capital      Total     Revenue    Capital      Total   Revenue    Capital      Total
                          £'000      £'000      £'000       £'000      £'000      £'000     £'000      £'000      £'000

Total capital gains from      -     55,895     55,895           -     64,443     64,443         -    103,832    103,832
investments
Income from fixed asset   1,073          -      1,073         757          -        757     7,858          -      7,858
investments
Other interest
receivable and similar  
income                      125          -        125          79          -         79       139          -        139
                       --------   --------   --------    --------   --------   --------  --------   --------   --------
Gross revenue and         1,198     55,895     57,093         836     64,443     65,279     7,997    103,832    111,829
capital gains
Management fee
(including performance
fee)                      (208)    (1,840)    (2,048)       (277)    (1,109)    (1,386)     (512)    (2,046)    (2,558)
Other administrative      (365)          -      (365)       (303)          -      (303)     (635)          -      (635)
expenses
                       --------   --------   --------    --------   --------   --------  --------   --------   --------
Net return on ordinary
activities before
interest payable and        625     54,055     54,680         256     63,334     63,590     6,850    101,786    108,636
taxation

Interest payable           (11)       (47)       (58)         (2)       (10)       (12)      (30)      (118)      (148)
                       --------   --------   --------    --------   --------   --------  --------   --------   --------
Net return on ordinary
activities before
taxation                    614     54,008     54,622         254     63,324     63,578     6,820    101,668    108,488
Taxation (charge)/relief
on ordinary activities    (224)        202       (22)       (567)        538       (29)   (1,345)        567      (778)
                       --------   --------   --------    --------   --------   --------  --------   --------   --------
Net return/(loss) on
ordinary activities
after taxation              390     54,210     54,600       (313)     63,862     63,549     5,475    102,235    107,710

Appropriations -
dividends
Interim 2004: 2.40p           -          -          -           -          -          -   (3,644)          -    (3,644)
Special 2004: 0.50p           -          -          -           -          -          -     (759)          -      (759)
                       --------   --------   --------    --------   --------   --------  --------   --------   --------
Total dividends payable       -          -          -           -          -          -   (4,403)          -    (4,403)
                       --------   --------   --------    --------   --------   --------  --------   --------   --------
Over accrual prior year      92          -         92           3          -          3         3          -          3
                       --------   --------   --------    --------   --------   --------  --------   --------   --------
Transfer to/(from)          482     54,210     54,692       (310)     63,862     63,552     1,075    102,235    103,310
reserves
                       ========   ========   ========    ========   ========   ========  ========   ========   ========
Return/(loss) per         0.26p     36.44p     36.70p     (0.20)p     41.38p     41.18p     3.57p     66.68p     70.25p
ordinary share
                       ========   ========   ========    ========   ========   ========  ========   ========   ========


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



                                    - MORE -


                                     - 4 -


                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2004


Group Balance Sheets
as at 31 December 2004
                                                       (Unaudited)         (Unaudited)           (Audited)
                                                       31 December         31 December             30 June
                                                              2004                2003                2004
                                                             £'000               £'000               £'000
Fixed assets
Investments at valuation                                   354,363             290,686             341,118
                                                       -----------         -----------         -----------

Current assets
Debtors                                                        369                 528                 831
Cash at bank                                                28,523              13,195               3,097
                                                       -----------         -----------         -----------
                                                            28,892              13,723               3,928

Creditors: amounts falling due
 within one year                                           (2,294)               (163)             (5,056)
                                                       -----------         -----------         -----------
Net current assets/(liabilities)                            26,598              13,560             (1,128)
                                                       -----------         -----------         -----------
Total net assets                                           380,961             304,246             339,990
                                                       ===========         ===========         ===========
Capital and reserves
Called up share capital                                     18,162              19,255              18,979
Share premium                                              115,451             115,451             115,451
Other capital reserves                                     235,258             159,317             193,952
Revenue reserve                                             12,090              10,223              11,608
                                                       -----------         -----------         -----------
                                                           380,961             304,246             339,990
                                                       ===========         ===========         ===========

Net asset value per ordinary share                         262.19p             197.51p             223.93p





                                    - MORE -


                                     - 5 -


                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2004


Group Cash Flow Statement
for the half year ended 31 December 2004
                                                         (Unaudited)         (Unaudited)        (Audited)
                                                     Half year ended     Half year ended       Year ended
                                                    31 December 2004    31 December 2003     30 June 2004
                                                               £'000               £'000            £'000

Net cash inflow/(outflow) from operating                         743               (789)            3,727
activities
Net cash outflow from servicing of finance                      (53)                (13)            (149)
Net tax recovered                                                474                 289              407
Net cash inflow from financial investment                     42,355              17,426            7,544
Equity dividends paid                                        (4,311)             (3,242)          (3,242)
Net cash outflow from financing                             (13,721)             (1,544)          (5,558)
                                                         -----------         -----------      -----------
Increase in cash                                              25,487              12,127            2,729
                                                         ===========         ===========      ===========

Reconciliation of operating revenue to net cash inflow/(outflow) from operating activities

Net revenue before interest payable and taxation                 625                 256            6,850
(Increase)/decrease in accrued income                            (4)                 201              219
Decrease in other debtors                                         13                   3                -
Increase/(decrease) in other creditors                         2,087                (43)              (4)
Management charge taken to other capital reserves            (1,840)             (1,109)          (2,046)
Overseas withholding tax suffered                              (138)                (97)          (1,292)
                                                         -----------         -----------      -----------
                                                                 743               (789)            3,727
                                                         ===========         ===========      ===========

Reconciliation of net cash flow to movement in net funds

Increase in cash                                              25,487              12,127            2,729
Exchange differences                                               9                 348            (422)
                                                         -----------         -----------      -----------
Movement in net funds in period                               25,496              12,475            2,307
Net funds at beginning of period                               3,027                 720              720
                                                         -----------         -----------      -----------
Net funds at period end                                       28,523              13,195            3,027
                                                         ===========         ===========      ===========
Represented by:
Cash at bank                                                  28,523              13,195            3,027
                                                         ===========         ===========      ===========


                                    - MORE -


                                     - 6 -



                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2004

Notes:
          
1.   Return/(loss) per ordinary share

     Revenue return per ordinary share is based on earnings attributable to the 
     ordinary shares of £390,000 (half year ended 31 December 2003: loss
     £313,000; year ended 30 June 2004: gains £5,475,000) and on the weighted 
     average number of shares in issue during the half year ended 31 December 
     2004 of 148,763,517 (half year ended 31 December 2003: 154,306,120; year 
     ended 30 June 2004: 153,321,883).

     Capital return per ordinary share is based on net capital gains for the 
     half year ended 31 December 2004 of £54,210,000 (half year ended 31 
     December 2003: £63,862,000; year ended 30 June 2004: £102,235,000) and on 
     the weighted average number of shares in issue as shown above.

2.   Net asset value per ordinary share

     Undiluted net asset value per ordinary share is based on the 145,296,869 
     ordinary shares in issue at 31 December 2004 (31 December 2003:154,040,957; 
     30 June 2004: 151,830,957).

3.   Issued share capital

     During the period, the Company repurchased for cancellation 6,534,088 of 
     its own issued shares.  At 31 December 2004 there were 145,296,869 ordinary 
     shares in issue.

4.   Dividends

     No interim dividend has been declared (2003: nil).  The total dividend 
     payable in respect of the year ended 30 June 2004, at 2.90p per ordinary 
     share (comprising an interim dividend of 2.40p per ordinary share and a 
     special dividend of 0.50p per ordinary share), amounted to £4,311,000.  The 
     buy-backs of the Company's ordinary shares, after 30 June 2004 but before 
     the record date of the total dividend for the year ended on that date, 
     resulted in a write-back of £92,000 for dividends accrued in the year ended 
     30 June 2004 but not in the event payable.

5.   Comparative information

     The financial information contained in this interim statement does not
     constitute statutory accounts as defined in section 240 of the Companies 
     Act 1985.  The financial information for the six months ended 31 December 
     2003 and 31 December 2004 have not been audited.  The figures and financial 
     information for the year ended 30 June 2004 are an extract from the latest 
     published accounts and do not constitute 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 237(3) of the Companies 
     Act 1985.

6.   Interim statement

     The interim accounts were approved by the directors on 21 February 2005.


                                    - MORE -


                                     - 7 -


                          TR EUROPEAN GROWTH TRUST PLC

                           Unaudited Interim Results
                    for the half year ended 31 December 2004


Thirty Largest Investments
Market Value at 31 December 2004

Stock                                   Activity                                                           £'000
----------------------------------------------------------------------------------------------------------------
Sjaelso Gruppen                         Property developer                                                16,127
Regal Petroleum                         Oil and gas                                                       15,733
Mobilcom                                Telecommunications services                                       14,200
Pfleiderer                              Building materials                                                12,021
Aalberts Industries                     Specialist engineering products and services                      12,005
----------------------------------------------------------------------------------------------------------------
Wienerberger                            Building materials                                                11,198
NDS                                     Conditional access software                                       11,050
Azimut                                  Investment manager                                                10,177
Rapala VMC                              Manufacturer and distributor of fishing-related products           8,481
Iliad                                   Internet services                                                  7,882
----------------------------------------------------------------------------------------------------------------
ACS                                     Construction and concessions                                       7,740
*BrainLAB                               Medical technology company                                         7,696
Heijmans                                Broadly based construction company                                 7,678
Coca-Cola Hellenic Bottling             Soft drinks bottler                                                7,638
OMV                                     Oil and gas                                                        7,014
----------------------------------------------------------------------------------------------------------------
Cintra                                  Toll road operator                                                 6,856
Altadis                                 Tobacco products                                                   6,560
iTouch                                  Provider of information/services to mobile customers               6,517
Aufeminin.com                           Europe's largest women's internet portal                           6,466
Technip                                 Engineering and construction services                              6,233
----------------------------------------------------------------------------------------------------------------
Eiffage                                 Construction and concessions                                       6,027
Andritz                                 Industrial process solutions                                       5,958
Red Electrica                           Operator of Spain's national electric grid                         5,857
Eircom                                  Telecommunications                                                 5,851
VP Bank                                 Private bank                                                       5,547
----------------------------------------------------------------------------------------------------------------
Axalto                                  Smart card producer                                                5,380
Eniro                                   Directories producer                                               5,320
Bilfinger & Berger                      Construction and engineering services                              4,819
Cesky Telecom                           Telecommunications                                                 4,735
Lundin Mining                           Mining                                                             4,566
----------------------------------------------------------------------------------------------------------------


These investments total £243,332,000 or 68.7% of the portfolio.

All classes of equity in any one company are treated as one investment.

*Unquoted investment


                                    - ENDS -


For further information please contact:

Stephen Peak
Fund Manager
TR European Growth Trust plc
Telephone: 020 7818 4334

James de Sausmarez
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 3349

Vicki Staveacre
Henderson Press Office
Telephone: 020 7818 4222

Richard Acworth
Henderson Press Office
Telephone: 020 7818 3010



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