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TR European Growth (TRG)

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Monday 09 February, 2009

TR European Growth

Half Yearly Report

RNS Number : 0467N
TR European Growth Trust PLC
09 February 2009
 



Page 1 of 16

February 2009

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


This announcement contains regulated information



HIGHLIGHTS


31 December 

2007

(unaudited)





31 December 

2008

(unaudited)

30 June 

2008

(audited)




£'000



£'000

£'000

% change

406,114


Total net assets

202,531

331,852

-39.0







%


Divided between:

%

%


97.5


Quoted equities

76.6

100.3


2.8


Unquoted equities

8.8

4.1


(0.3)


Net current assets/(liabilities)

14.6

(4.4)


-------



-------

-------


100.0



100.0

100.0


  ==== 



  ====

====








525.41p


Net asset value per ordinary share

292.86p

458.61p

-36.1







467.75p


Ordinary share price

265.50p

420.00p

-36.8

10.97%


Discount to NAV 

9.34%

8.42%








-


Benchmark 

-

-

-23.6

526.93


*HSBC Smaller Europe (ex UK) Index 

350.83

464.33

-24.4

608.02


*S&P/Citigroup EMI Europe (ex UK) Index

426.85

552.75

-22.8













755.84


*FTSE World Europe (ex UK) Index 

574.51

663.23

-13.4









* Indices expressed on a total return basis, source Datastream











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  Page 2 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


INTERIM MANAGEMENT REPORT


Chairman's Statement


The first half of our fiscal year was a very difficult period for both stock markets and our Company. The net asset value fell by 36.1% which compares very unfavourably with our benchmark which fell by 23.6%. The reasons for this disappointing return are discussed in the Manager's Report which follows. In summary, our stock selection was below par, exacerbated by poor liquidity. 


The share price fell in tandem, although the discount was little changed, aided by our share repurchase programme. We have continued to buy back shares at discounts to net asset value, thus enhancing the net asset value for remaining shareholders. During the six months to 31 December 2008, 3,203,600 shares were repurchased, representing a little under 4.5% of our share capital.



Reclaim of VAT on past management and performance fees

In our annual report to 30 June 2008, we reported that we had recognised an estimated VAT reclaim of £4,538,000.  Further progress has been made on the recovery process. As a result of agreement reached with HM Revenue & Customs, an additional £611,000 has been recognised in the Income Statement.  Full details can be found in note 6 to the financial statements. 


The VAT reclaim contributed to our being able to report a positive revenue result of £1,277,000, despite the fact that the majority of our dividend income usually falls due in the second half of our financial year.



Prospects, principal risks and uncertainties

After a period where markets have been terrible, we are now in a phase where company reporting is catching up with market expectations by coming in almost universally negative and managements being extremely cautious as to the short term outlook. This had led to a slew of profit warnings and analysts have been forced to inject more reality into their forecasts. However, markets have already moved towards discounting much of the bad news; to such an extent that some companies, reporting poor results, have actually seen their share prices rise as things, whilst bad, were not as bad as expected. The upshot is that markets are likely to remain volatile for some time to come, and the economic news will continue to be poor, but in certain cases we believe that the share prices of particular companies are discounting an even more negative scenario. We have been building our cash levels in recent months. This gives us the fire power to invest in select opportunities that this nervous market will undoubtedly present.


A W Twiston-Davies

Chairman






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Page 3 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


Manager's Report


At times of such difficult market conditions, it is important to remember that in the real economy, life still goes on, even if a little more subdued and it was noteworthy that a number of our best stock performances were as a result of corporate activity. That is, companies using their own money to back their judgement that a particular share price represents an attractive discount to the genuine industrial value of the business concerned.


Our most notable success in this area was Tanganyika Oil, the Swedish listed oil producer with Syrian assets. The company was acquired by Sinopec, the Chinese oil company, at a significant premium.


We had a bid for Revus Energy, the Norwegian energy explorer with assets in the North Sea.


Another of our holdings which was bid for, was NDS, the conditional access software company for Pay-TV which was acquired by a consortium including its parent company and largest customer, News Corp. This company has been an extremely good performer for us over the last few years and is also a clear example of the potential power of buying good businesses at times of maximum market stress.  After having reached a high of over $100 per share in 2000, we had the opportunity to buy some stock at prices below $10 during the aftermath of the tech meltdown in 2000. The eventual bid price was $63. It is investments such as this that give us the encouragement during periods of trying markets to keep looking for good ideas and backing our judgement. 


Geographical distribution (% of portfolio)


31 December 2008

30 June 2008

Austria 

3.5

4.5

Belgium

1.2

1.6

Bulgaria

0.6

1.2

Czech Republic

0.5

1.7

Denmark

0.6

1.2

Finland

4.9

3.6

France

16.2

13.1

Germany

16.4

10.3

Greece

1.8

2.6

Italy

4.7

6.5

Kazakhstan

2.9

3.5

Netherlands

5.8

9.3

Norway

2.8

6.0

Romania

0.6

0.4

Russia

1.0

5.6

Spain

6.8

4.9

Sweden

9.3

7.3

Switzerland

4.1

4.7

Turkey

5.4

3.3

Other

10.9

8.7


-------

-------


100.0

100.0


====

====

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Page 4 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008



Manager's Report (continued)



We also had a bid for another long standing holding which was Rocla, the Finnish warehouse trucks business which was acquired by Mitsubishi Heavy Industries, its industrial partner.


It was not only equity markets which fell heavily last year. Many commodities had a torrid time and a number of our worst performers were companies which had exposure to commodities of one sort or another. This type of company tended to be hit doubly hard because not only was the price of its product falling, but the difficult credit conditions meant that financing future development became harder, thus also reducing capex spending.


Our worst performers included Regal Petroleum, the oil producer with mainly Ukrainian assets, Batla MineralsUrals Energy, which particularly suffered from financing difficulties, and Lundin Mining, the Swedish base metals miner with assets throughout Europe.


Other negative performers included RGI, which develops property in Moscow, and also Seadrill, the Norwegian oil drilling services company. 


We selectively added some new holdings, mainly where we felt that the share prices had fallen much further than was justified, even acknowledging the difficult economic environment.


The first new holding was TF1. This is the largest privately owned broadcasting group in France and runs the most popular commercial television channel, with which it shares its name. It also has a number of other digital media ventures which it is expanding. It is a turbulent time in French TV with a number of changes to the operating environment but we believe that the company's market position has significant fundamental value and that the management is determined to structurally improve its operating efficiency and reduce its costs.


We also added a new holding in EVS Broadcast Equipment. This Belgian based company is the leader in live outside broadcast digital video production systems. Its product offering includes specialised hard disk recorders and editing platforms which allow rapid production of highlights packages from outside broadcasts. From its dominant position in the outside broadcast market, it is now starting to address the substantially larger, studio market. Given its updated product features, it is able to benefit from the broadcasters' desire to upgrade their capabilities to offer more and more high definition material.


We bought a new position in Hochtief. This German company is a leading international construction group which is active across a range of different segments globally and should benefit from an environment of increased infrastructure spending.







- MORE -



Page 5 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008



Manager's Report (continued)



Another new holding was Sampo. This Finnish insurance group's management has a strong track record of building a high quality business.


We also increased our holding in Selçuk Ecza Deposu. This Turkish pharmaceutical distributor has been in the portfolio for some time, but we still believe that it continues to make progress and is attractively valued given its significant position in what is still a structurally growing market.


Our sales were a mixture of companies where we were concerned over the outlook, such as the financial companies Fortis, the Benelux banking group, and Marfin, the Greek financial group, and also of companies where we simply felt that we could find more attractive opportunities elsewhere, such as Lundin Petroleum, the Swedish oil concern and Givaudan, the Swiss fragrances company.



Sector distribution (% of portfolio)


31 December 2008

30 June 2008

Basic materials 

14.3

12.1

Business providers

7.4

10.3

Consumer goods

3.9

6.0

Financials

19.9

16.2

Industrial goods

8.9

10.7

Natural resources

26.4

32.8

Retail providers

-

0.9

Technology

19.2

11.0


-------

-------


100.0

100.0


====

====


Outlook

The dramatic falls across equity markets globally are a stark illustration of the magnitude of the economic problems facing the global economy. The roots of the crisis have been primarily financial and indeed much of the last year has been spent by both companies and increasingly also by governments in trying to put the financial system back into reasonable working order. This has meant recapitalisations of banks on a massive scale, mostly as a result of government bailouts. We seem to be at least a fair way through this process now but the result of a sick banking system has been a marked lack of availability of credit for the rest of the economy. This has all contributed to make the ending of a number of demand bubbles even more painful and dramatic than might have been expected. The result is a world in which companies are extremely nervous about the outlook for customer demand and this has understandably led to them adopting cautious spending patterns of their own.


- MORE -





Page 6 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008



Manager's Report (continued)



The result of all of this is that this year is likely to be one of consolidation at best for some companies, and most likely retrenchment for many. It is difficult for stockmarkets to make significant progress against what is likely to be a torrent of downbeat trading statements. However, markets do tend to work to discount future expectations, and so in the same way that markets began falling well before the companies reported poor earnings, we should expect markets to start to recover before companies see much in the way of green shoots. 


We still have some way to go and markets are likely to remain volatile, subject to sudden swings in sentiment but it is important to remain focused on our task of finding specific companies which have strong businesses and which have the ability to survive this difficult period and use it as a base from which to grow in the future. We also strongly believe that the level of negative sentiment which abounds means that we are currently able to buy particular, good companies at levels not seen for a number of years and that these should form a good platform for performance in the years ahead.



S V Peak

S J Savill



 



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Page 7 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008



Consolidated Income Statement

for the half year ended 31 December 2008



Half year ended 

31 December 2008

(unaudited)

Half year ended 

31 December 2007

(unaudited)

Year ended 

30 June 2008

(audited)


Revenue

Return

Capital 

Return


Total

Revenue

Return

Capital 

Return


Total

Revenue

Return

Capital 

Return


Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000











Investment income

1,164

-

1,164

797

-

797

6,371

-

6,371

Other income (note 6)

869

-

869

58

-

58

201

-

201

Losses on investments held at 

  fair value through profit or  

   loss

-

(117,952)

(117,952)

-

(33,191)

(33,191)

-

(90,078)

(90,078)


----------

----------

----------

----------

----------

----------

----------

----------

----------

Total income/(loss)

2,033

(117,952)

(115,919)

855

(33,191)

(32,336)

6,572

(90,078)

(83,506)


----------

----------

----------

----------

----------

----------

----------

----------

----------











Expenses










Management fees (note 2)

(111)

(444)

(555)

(212)

(2,941)

(3,153)

(382)

(3,052)

(3,434)

Write back of prior years'

   VAT (notes 2 and 6)

122

489

611

673

3,931

4,604

453

4,085

4,538

Other expenses

(253)

-

(253)

(323)

-

(323)

(590)

-

(590)


----------

----------

----------

----------

----------

----------

----------

----------

----------

Profit/(loss) before finance 

  costs and taxation

1,791

(117,907)

(116,116)

993

(32,201)

(31,208)

6,053

(89,045)

(82,992)











Finance costs

(29)

(116)

(145)

(95)

(380)

(475)

(148)

(590)

(738)


----------

----------

----------

----------

----------

----------

----------

----------

----------

Profit/(loss) before taxation

1,762

(118,023)

(116,261)

898

(32,581)

(31,683)

5,905

(89,635)

(83,730)











Taxation

(485)

424

(61)

(276)

195

(81)

(1,752)

967

(785)


----------

----------

----------

----------

----------

----------

----------

----------

----------

Profit/(loss) for the period

1,277

(117,599)

(116,322)

622

(32,386)

(31,764)

4,153

(88,668)

(84,515)


======

======

======

======

======

======

======

======

======











Earnings/(loss) per ordinary

   share (note 3)

1.80p

(165.85p)

(164.05p)

0.78p

(40.79p)

(40.01p)

5.39p

(115.02p)

(109.63p)


======

======

======

======

=====

=====

=====

======

======












The total column of this statement represents the Consolidated Income Statement, prepared in accordance with IFRS. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. 


All items in the above statement derive from continuing operations.


All income is attributable to the equity holders of TR European Growth Trust PLC, the parent company. There are no minority interests.






- MORE -


Page 8 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008



Consolidated Statement of Changes in Equity

for the half year ended 31 December 2008






Half year ended 

31 December 2008

Called up share 

capital

Share

premium

 account

Capital redemption reserve

Other 

capital 

reserves

Revenue reserve

Total

(unaudited)

£'000

£'000

£'000

£'000

£'000

£'000








Balance at 30 June 2008

9,045

115,451

11,133

179,167

17,056

331,852

Buy-backs of ordinary 

   shares

(400)

-

400

(9,450)

-

(9,450)

(Loss)/profit for the 

   period

-

-

-

(117,599)

1,277

(116,322)

Ordinary dividend paid

-

-

-

-

(3,549)

(3,549)


----------

----------

----------

----------

---------

-----------

Balance at 31 December 2008

8,645

115,451

11,533

52,118

14,784

202,531


======

======

======

======

=====

======


















Half year ended 

31 December 2007

Called up share 

capital

Share

premium

account 

Capital redemption reserve

Other 

capital 

reserves


Revenue reserve



Total

(unaudited)

£'000

£'000

£'000

£'000

£'000

£'000








Balance at 30 June 2007

10,179

115,451

9,999

309,316

15,133

460,078

Buy-backs of ordinary 

  shares

(518)

-

518

(19,970)

-

(19,970)

(Loss)/profit for the period

-

-

-

(32,386)

622

(31,764)

Ordinary dividend paid

-

-

-

-

(2,230)

(2,230)


------------

------------

------------

------------

------------

------------

Balance at 31 December 2007

9,661

115,451

10,517

256,960

13,525

406,114


=======

=======

=======

=======

=======

=======

















Year ended  30 June 2008

Called up share 

capital

Share

premium

account

Capital redemption reserve

Other 

capital 

reserves

Revenue reserve 

Total

(audited)

£'000

£'000

£'000

£'000

£'000

£'000








Balance at 30 June 2007

10,179

115,451

9,999

309,316

15,133

460,078

Buy-backs of ordinary 

   shares

(1,134)

-

1,134

(41,481)

-

(41,481)

(Loss)/profit for the year

-

-

-

(88,668)

4,153

(84,515)

Ordinary dividend paid

-

-

-

-

(2,230)

(2,230)


------------

------------

------------

------------

------------

------------

Balance at 30 June 2008

9,045

115,451

11,133

179,167

17,056

331,852


=======

=======

=======

=======

=======

=======









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  Page 9 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


Consolidated Balance Sheets

at 31 December 2008




31 December 2008

(unaudited)

31 December 2007

(unaudited)

30 June 2008

(audited)



    £'000

    £'000

    £'000






Non current assets





Investments held at fair value through profit 

   or loss



172,946


407,171


346,342



-----------

-----------

-----------

Current assets





Sales for future settlement


64

824

42

Taxation recoverable


194

178

190

Other receivables 


6,010

4,688

4,931

Cash and cash equivalents


24,020

266

1,300



-----------

-----------

-----------



30,288

5,956

6,463



-----------

-----------

-----------






Total assets


203,234

413,127

352,805



-----------

-----------

-----------

Current liabilities





Purchases for future settlement


-

(353)

(2,542)

Accruals


(402)

(2,886)

(2,299)

Amounts due on repurchase of shares


(8)

(20)

(674)

Bank loans and overdrafts


(293)

(3,754)

(15,438)



-----------

-----------

-----------



(703)

(7,013)

(20,953)



-----------

-----------

-----------






Net assets


202,531

406,114

331,852



=======

=======

=======






Equity attributable to equity shareholders





Called up share capital


8,645

9,661

9,045

Share premium account


115,451

115,451

115,451

Capital redemption reserve


11,533

10,517

11,133

Retained earnings:





  Other capital reserves 


52,118

256,960

179,167

  Revenue reserve


14,784

13,525

17,056



-----------

-----------

-----------

Total equity


202,531

406,114

331,852



======

======

======






Net asset value per ordinary share (note 5)


292.86p

525.41p

458.61p



======

======

======







- MORE -

  Page 10 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


Consolidated Cash Flow Statement

for the half year ended 31 December 2008



Half year ended 

31 December 2008

(unaudited)

Half year ended

31 December 2007

(unaudited)


Year ended

30 June 2008

(audited)


£'000

£'000

£'000

Net cash inflow from operating activities

    (note 7)

50,061

41,712

52,654


----------

----------

---------

Net cash inflow before use of financing

50,061

41,712

52,654

Net cash outflow from financing activities

(29,050)

(42,901)

(54,386)


----------

-----------

-----------

Net increase/(decrease) in cash and cash

    equivalents 

21,011

(1,189)

(1,732)

Cash and cash equivalents at the start of the 

  period

1,300

2,821

2,821

Realised profit/(loss) on foreign currency

1,416

(1,447)

211


----------

----------

---------

Cash and cash equivalents at the period end

23,727

185

1,300


======

======

=====







 


- MORE -

  

Page 11 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


Notes 


1. Accounting policies


a)  Basis of preparation

The condensed set of financial statements has been prepared using the same accounting policies as are set out in the Company's annual report for the year ended 30 June 2008 and in accordance with IAS 34.


The condensed set of financial statements has not been either audited or reviewed by the Company's auditors.


b)  Basis of consolidation

The Group accounts consolidate the accounts of the Company and of its wholly owned subsidiary undertaking, TREG Finance Limited.


2. Management and performance fees

    


Half year ended 

31 December 2008

(unaudited)

Half year ended 

31 December 2007

(unaudited)

Year ended 

30 June 2008

(audited)


Revenue

Capital

Total

Revenue

Capital 

Total

Revenue

Capital

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000











Performance fee 

-

-

-

-

2,025

2,025

-

1,512

1,512

Management fee

111

444

555

210

840

1,050

382

1,527

1,909

Write back of 

  prior years' VAT


(122)


(489)


(611)


(673)


(3,931)


(4,604)


(453)


(4,085)


(4,538)

Irrecoverable 

  VAT thereon

-

-

-

2

76

78

-

13

13


-------

-------

---------

-------

-------

--------

-------

-------

---------


(11)

(45)

(56)

(461)

(990)

(1,451)

(71)

(1,033)

(1,104)


====

====

=====

====

====

====

====

====

=====


There was no performance fee provision at 31 December 2008.


3.  Loss per ordinary share

The loss per ordinary share figure is based on the loss for the half year of £116,322,000 (half year ended 31 December 2007: £31,764,000; year ended 30 June 2008: £84,515,000) and on 70,904,353 (half year ended 31 December 2007: 79,401,809; year ended 30 June 2008: 77,092,660) ordinary shares, being the weighted average number of ordinary shares in issue during the period.  












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Page 12 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


Notes (continued)


3.  Loss per ordinary share (continued)

The return per ordinary share detailed above can be further analysed between revenue and capital, as below.




31 December 2008 

(unaudited)

31 December 

2007

(unaudited)

30 June 

2008

(audited)



 £'000 

 £'000 

 £'000 

Net revenue profit

1,277

622

4,153

Net capital loss

(117,599)

(32,386)

(88,668)


----------

----------

----------

Net total loss

(116,322)

(31,764)

(84,515)


======

======

======

Weighted average number of ordinary 

  shares in issue during the period

70,904,353

79,401,809

77,092,660








 Pence 

 Pence 

 Pence 

Revenue return per ordinary share

1.80

0.78

5.39

Capital loss per ordinary share

(165.85)

(40.79)

(115.02)


----------

----------

----------

Total loss per ordinary share

(164.05)

(40.01)

(109.63)


======

======

======


4. Ordinary share capital

At 31 December 2008 there were 69,157,355 ordinary shares in issue (31 December 200777,294,355; 30 June 200872,360,955). During the half year ended 31 December 2008 the Company bought 3,203,600 of its own issued ordinary shares in the market for cancellation (31 December 20074,141,000; 30 June 20089,074,400). The cost of the share buy-backs, including stamp duty, amounted to £9,450,000 (31 December 2007: £19,970,000; 30 June 2008: £41,481,000).


5. Net asset value per ordinary share

The net asset value per ordinary share is based on the net assets attributable to equity shareholders of £202,531,000 (31 December 2007: £406,114,000; 30 June 2008: £331,852,000) and on 69,157,355 (31 December 200777,294,355; 30 June 200872,360,955) ordinary shares, being the number of ordinary shares in issue at the period end.


6. VAT on management and performance fees

In 2004 the Association of Investment Companies (the 'AIC'), together with JPMorgan Claverhouse Investment Trust plc, launched a case against HM Revenue & Customs ('HMRC') to challenge whether Value Added Tax ('VAT') should have been charged on fees paid for management services provided to investment trust companies. On 28 June 2007 the European Court of Justice delivered its judgement on the case in favour of the AIC. Since then HMRC has accepted that the provision of investment management services to investment trust companies is VAT exempt and has acknowledged its liability to pay claims in respect of VAT borne by investment companies. VAT has not been applied to investment management fees invoiced in respect of periods since June 2007.




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  Page 13 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


Notes (continued)


6. VAT on management and performance fees (continued)

In accordance with a standstill agreement reached between the Manager and the Company the Manager (Henderson Global Investors Limited) has reclaimed from HMRC the amount of VAT charged to the Company in respect of investment management services from 1 October 2000 to 30 June 2007. An amount of £4,538,000 was written back in the year ended 30 June 2008. Since the year end the Manager has reached agreement with HMRC that the Company will receive an amount of £5,149,000 in respect of the above period. Accordingly, an additional £611,000 has been recognised in the Income Statement. The amount of £5,149,000 was received by the Company on 3 February 2009.


The Company will receive from the Manager any interest paid by HMRC on the amounts recovered. The Board has therefore included an estimate of £792,000 in 'Other income' in the Income Statement.


The Company expects to be able to reclaim VAT paid in respect of the period from 1 January 1990 to 4 December 1996, following the judgement of the House of Lords in a case concerning the time limits applicable to VAT claims. However, the Board considers that the calculation of the figures is too uncertain to permit a realistic estimate to be made. There may also be some possibility, albeit remote, of recovering VAT paid in the period from then to 30 September 2000.  


7. Reconciliation of profit before taxation to net cash inflow from operating activities



Half year ended 

31 December 

2008

(unaudited)

 

Half year ended 

31 December

2007

(unaudited) 

 

Year ended 

30 June 

2008 

(audited) 


£'000


£'000


£'000







Loss before taxation

(116,261)


(31,683)


(83,730)

Losses on investments held at fair value

117,952


33,191


90,078

(Increase)/decrease in accrued income

(467)

 

216


(93)

Decrease in accruals

(1,897)


(3,692)


(4,284)

Taxation on overseas investment income

(27)


47


(677)

(Increase)/decrease in sales settlement

   debtor

(22)


7,340


8,122

Increase in VAT recoverable

(611)


(4,604)


(4,538)

(Decrease)/increase in purchases 

   settlement creditor

(2,542)


328


2,517

Net sales of investments

53,936


40,569


45,259


----------


-----------


----------


50,061

 

41,712


52,654


======


======


======


8. Interim dividend

The Company has not declared an interim dividend (2007: nil).


9. Transaction costs

Purchase transaction costs for the half year ended 31 December 2008 were £49,000 (half year ended 31 December 2007: £84,000; year ended 30 June 2008: £105,000). These comprise mainly stamp duty and commission. Sales transaction costs for the half year ended 31 December 2008 were £85,000 (half year ended 31 December 2007: £237,000; year ended 30 June 2008: £380,000).


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  Page 14 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


Notes (continued)



10. Related party transactions

Details of related parties are contained in the annual report. There have been no material transactions with our related parties affecting the financial position or performance of the Company during the six months to 31 December 2008.


11. Comparative information

The financial information contained in this half year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The information for the year ended 30 June 2008 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 30 June 2008 have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under section 237(2) or (3) of the Companies Act 1985.



Directors' Responsibility Statement


The Directors confirm that, to the best of their knowledge:


a)  the condensed set of financial statements has been prepared in accordance with the Accounting Standards Board's statement 'Half-Yearly Financial Reports';


b)  this report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and


c)  this report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).



A W Twiston-Davies

Chairman




 



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  Page 15 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


List of Investments as at 31 December 2008




Valuation

£'000

% of total

portfolio



Valuation

£'000

% of total 

portfolio








Austria 




France (continued)



A-Tec Industries

2,315



STS Group

2,916


Andritz

2,282



Televista

1,639


Schoeller-Bleckmann

1,482



TF1

2,579



-------

-------


Uniross

544



6,079

3.5


Velcan Energy

2,954



====

====



---------

-------

Belgium





27,964

16.2

Accentis

474




=====

====

EVS Broadcast Equipment

1,111



Germany



Punch International

532



Bauer

4,951



-------

-------


BrainLAB *

7,551



2,117

1.2


Gerresheimer

3,331



====

====


Hochtief

5,163


Bulgaria




Puma 

3,138


Equest Investments 




Uzin Utz

3,071


   Balkans

1,112



Washtec

1,180



-------

-------



--------

-------


1,112

0.6



28,385

16.4


====

====



=====

====

Czech Republic




Greece



New World Resources

895



Goldenport

366



-------

-------


Sidenor

1,701



895

0.5


Technical Olympic

957



====

====



-------

-------

Denmark





3,024

1.8

Sjaelsø Gruppen

949




====

====


-------

-------


Italy




949

0.6


Aeffe 

1,461



====

====


Azimut 

3,529


Finland




Elica 

779


Inion

17



Landi Renzo

788


Ponsse

1,513



Safwood

1,508


Sampo

5,770




-------

-------

Talvivaara Mining

1,190




8,065

4.7


-------

-------



====

====


8,490

4.9


Kazakhstan




====

====


KazMunaiGas

3,506


France




ShalkiyaZinc

17


21 Centrale Partners III *

8,477



Tau Capital

1,478


21 Développement *

793




-------

-------

Batla Minerals

1,629




5,001

2.9

Cafom

857




====

====

Dietswell Engineering

1,032






Haulotte

905






Hi-Media

1,650






Poncin Yachts

257






Rhodia

1,732








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  Page 16 of 16

TR EUROPEAN GROWTH TRUST PLC


Unaudited Results for the Half Year ended 31 December 2008


List of Investments as at 31 December 2008 (continued)




Valuation

£'000

% of total portfolio



Valuation

£'000

% of total portfolio








Netherlands




Sweden



Aalberts Industries

2,246



Lundin Petroleum

2,123


Binckbank

3,678



Tanganyika Oil

14,002


Smartrac

2,355




---------

-------

Wavin

1,810




16,125

9.3


--------

-------



=====

====


10,089

5.8


Switzerland




=====

====


Compagnie Financière Tradition

1,698


Norway




Temenos

5,450


Prosafe Production

584




-------

-------

Prosafe 

2,111




7,148

4.1

Seadrill

2,189




====

====


-------

-------


Turkey




4,884

2.8


Selçuk Ecza Deposu

5,978



====

====


Turkiye Halk Bankasi

3,405


Romania





-------

-------

A&D Pharma

1,010




9,383

5.4


-------

-------



====

====


1,010

0.6


Other




====

====


Amerisur

118


Russia




Doughty Hanson & Co Fund II *

133


AFI Development

505



Doughty Hanson & Co Fund III *

931


Amtel-Vredestein

-



IFR Capital

271


Premier Telesports *

-



KSK Emerging India Energy

4,733


Primamedic *

-



NDS

10,922


RGI International

573



Regal Petroleum

1,339


Urals Energy

631



Trigon Agri

378



-------

-------



--------

-------


1,709

1.0



18,825

10.9


====

====



=====

====

Spain







Enagas

5,833



Total Portfolio

172,946

100.0

OHL

4,569




======

====

Realia

1,290







--------

-------


* Unquoted investments




11,692

6.8






=====

====






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


Sarah Gibbons-Cook, Investor Relations and PR Manager

Henderson Global Investors, Telephone: 020 7818 3198


- ENDS -



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