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JPMorganInc&CapTst (JPI)

  Print      Mail a friend       Annual reports

Friday 30 April, 2010

JPMorganInc&CapTst

Final Results

RNS Number : 1925L
JPMorgan Income & Capital Trust PLC
30 April 2010
 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN INCOME AND CAPITAL TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 28TH FEBRUARY 2010

 

Chairman's Statement

 

Introduction and Performance

I am pleased to report a marked improvement in your Company's fortunes over the last year following the turn around in financial markets. The total return (return on investments including income received) on the Company's assets was +42.6% for the year to 28th February 2010. This compares with a total return of +45.2% recorded by the composite benchmark (comprising 90% FTSE 350 index and 10% Merrill Lynch 5-10 year UK Sterling Corporate Index for bonds) for the same period. During the second half of our financial year, the portfolio total return outperformed the composite benchmark.

 

Whilst it is good to see the strong absolute recovery in the Company's asset value, there has been an underperformance of 2.6% compared with the composite benchmark index. Most of this underperformance occurred in the first months of the Company's financial year when there was a strong rally in cyclical stocks. The portfolio was underweight in these types of stocks, since many of them do not pay a dividend, whereas the portfolio has a bias towards income paying investments with strong balance sheets and an ability to withstand economic disruption. 

 

The Investment Manager's report gives a more detailed commentary about the markets and conditions experienced during the year and the future outlook.

 

Share Price Performance

The prices of the Company's two classes of share and of its Units (comprising two Ordinary shares and one ZDP) rose sharply during the year. In total return terms, with dividends re-invested, the Ordinary shares returned +58.4% and the Units returned +50.4%. The Zero Dividend Preference share price rose by +24.6%.

 


28th February 2010

28th February 2009



(Discount)/


(Discount)/


Share Prices

Premium

Share Prices

Premium

ZDP

111.5p

(2.2)%

89.5p

(16.1)%

Ordinary

68.0p

(2.2)%

48.3p

24.8%

Units

246.0p

(2.8)%

174.5p

(5.2)%

 

               

Since the year end, share prices have been fairly stable. As at 26th April 2010, the prices of Ordinary shares, Units and ZDPs were at a  discount of 10.8%, 8.8% and 1.8% respectively.

 

Hurdle Rate

The Hurdle Rate measures the amount by which the total assets of the Company have to grow each year in order to return the current share price to Ordinary shareholders when the Company winds up in February 2018. At 28th February 2010, the Hurdle Rate required to return the Ordinary share price of 68.0p was 3.8% per annum. The Hurdle Rate to return the Ordinary share price of 100p was 5.8% per annum and to return the Final Capital Entitlement of the ZDP shares of 192.13p was -1.4% at 28th February 2010.

 

At 26th April 2010, the Hurdle Rate required to return the current Ordinary share price of 70.75p was 3.2% per annum and to return the Final Capital Entitlement of the ZDP shares of 192.13p was -2.3%.

 

Total Return, Revenue and Dividends

The gross total return amounted to £29,467,000 and net total return after interest, administrative expenses and taxation, but before dividends and appropriations, amounted to £28,338,000. Distributable income for the year amounted to £3,404,000 (5.0p per Ordinary share).

 

A fourth interim dividend of 1.25p per Ordinary share was paid on 30th April 2010 to Ordinary shareholders and Unitholders on the register at the close of business on 9th April 2009. That dividend, together with the three interim dividends previously paid, each of 1.25p per Ordinary share, brings the total payment for the year to 5.0p per Ordinary share.

 

The undistributed revenue reserves, after allowing for the payment of the above dividends, are £622,000. The Board anticipates that, in the absence of unforeseen circumstances, the Company will be in a position to maintain the current level of quarterly dividends (i.e. of 1.25p per Ordinary share to Ordinary shareholders and Unitholders) for the current financial year ending 28th February 2011.

 

The Board

The Board has put in place procedures to ensure that the Company complies fully with the revised Combined Code and the AIC Code on Corporate Governance.

 

Roderick Collins and Antony Hichens will retire by rotation at this year's Annual General Meeting. They, being eligible, offer themselves for re-election. Details of their background and experience can be found on page 16. The Board recommends their re-election.

 

Companies Act 2006 and new Articles of Association

It is proposed that the Company adopts new Articles of Association in order to comply with the final provisions of the Companies Act 2006 which is now fully in force.

 

Annual General Meeting

The Directors and I look forward to welcoming shareholders to the second Annual General Meeting, which will be held at The Armourers' Hall, 81 Coleman Street, London EC2R 5BJ on 6th July 2010 at 3.00 p.m. The Investment Manager will make a presentation to shareholders, reviewing the year and commenting on the outlook for the current year. It would be helpful if shareholders could submit, in advance, in writing any detailed or technical questions that they wish to raise at the Annual General Meeting to the Company Secretary at Finsbury Dials, 20 Finsbury Street, London,
EC2Y 9AQ.

 

Outlook

Although the UK economy appears to be emerging slowly from recession, with investment conditions stabilising, the UK government's fiscal position remains a major concern. The Board is confident that the Company's portfolio is well positioned to deliver the dividend forecast for the current financial year and to benefit from a resumption of economic growth.

 

Sir Laurence Magnus Bt

Chairman                                                                                                                                                              

30th April 2010

 

 

Investment Manager's Report

 

Market Review

At the beginning of the review period, in March 2009, the UK stock market (like most other international markets) was in freefall. Having fallen sharply in February amid fears that the global financial system could collapse, on 3rd March 2009 the UK equity market reached a multi-year low. From this point, the market staged a remarkable recovery through the rest of our financial year, as it became clear that economic Armageddon would be avoided. For the twelve months to 28th February 2010 the FTSE 350 Index (excluding investment trusts) delivered an exceptionally strong return of +47.0%, whilst the Merrill Lynch 5-10 Year UK Sterling Corporate Index for bonds delivered a return of +28.8%, resulting in the Company's combined benchmark delivering a return of +45.2% for the financial year. This contrasts with the decline of 31.1% suffered during the previous financial year. Having delivered a strong return of +32.0% during our interim period, the markets continued to make solid progress during the second six months, with the benchmark delivering a further gain of 10.0%.

 

In early March 2009, the Bank of England provided emergency support to the financial system by cutting UK interest rates to a record low of just 0.5%, where they remain today, and by taking the unprecedented step of announcing a programme of quantitative easing (effectively printing money to buy Government bonds in an attempt to raise asset prices). Similar action was taken by global authorities around the world and, as the year progressed, signs began to emerge that this monetary policy action was beginning to work. Consequently risk appetite returned and risk assets rallied.

 

The strong performance of UK risk assets during 2009 took place as the UK economy recovered from its longest contraction since at least the 1950s. However, although an improvement in economic expectations helped boost sentiment, the UK's exit from recession lagged most other developed countries. In fact, investors had to wait until the fourth quarter of 2009 for economic growth to return, when GDP returned to very modest growth of just +0.4% quarter on quarter.

 

The subdued recovery reflects significant consumer de-leveraging, with tight credit conditions, rising unemployment and high debt levels constraining consumer demand. Corporate deleveraging was also a key trend over the year, as companies strengthened their balance sheets and cut debts to withstand the weak economic outlook. During the first half of the year many companies were reporting significant declines in revenues and profits, with a number of major quoted UK companies also cutting their dividends, making 2009 a difficult year for equity income investors. These dividend cuts came from a range of sectors, but the financial sector was the worst offender, reducing its total payout by some 43%. More recently the corporate environment has become more robust, with an increasing number of companies now meeting or exceeding market profit expectations.

 

With the Bank of England and also the Government spending hundreds of billions of pounds to help boost growth, concerns have grown over the UK's growing budget deficit, which by the end of 2009 stood at an estimated 12.6% of GDP2. Although concerns over the large deficits in several peripheral eurozone countries caused some renewed market volatility in early 2010, our financial year showed a substantial recovery in UK equity market returns.

 

Portfolio Review

The Company's financial year began as global equity markets were about to take their final aggressive lurch down. Within a week of the new financial year, markets began one of the strongest rallies in history as the market outlook improved. Throughout this period, we have maintained a modest overweight position in equities relative to the Company's composite benchmark. In April 2009 we introduced a holding in a Global Corporate Bond Fund, managed by the fixed income experts at JPMorgan Asset Management, as a diversified approach to enhancing the income yield whilst benefiting from corporate recovery.

 

We focus on identifying stocks whose earnings forecasts are being revised upwards, whose valuation is attractive and whose balance sheet strength allows for dividend stability. As such, portfolio construction is determined by bottom-up stock selection.

 

Throughout the year we have managed the portfolio to ensure that it is appropriately positioned in stocks that are likely to benefit from an improving economic environment whilst also having the earnings and balance sheet strength to maintain or grow their dividends. In March 2009, we bought a position in the high street, directory and on-line fashion retailer Next because this company was undervalued; as the year progressed its earnings forecasts were increased following better than expected sales and profits performance. A strong balance sheet meant that its dividends were secure and that the company could capitalise on growth opportunities as the economy recovered. In the first half of the year, we also bought a position in private label household goods company McBride. The company enjoyed better than expected sales as consumers sought to manage their weekly spending by eschewing more expensive branded products. We added to our position in Standard Chartered, an international bank with strong growth prospects that continued to pay a dividend and we also increased our exposure to the global mining company BHP Billiton as the global economic recovery made progress.

 

Conversely, we sold the portfolio's position in Keller Group. Earnings forecasts were falling as the outlook for global construction activity declined. We also sold the portfolio's holding in beverage cans to plastic packaging company, Rexam, as a tough operating environment led to earnings downgrades and failed to alleviate concerns that the dividend would be cut. We are currently maintaining our overweight position in equities, as the corporate earnings recovery makes further progress and more companies are providing reassurance on their dividend prospects.

 

Performance Review

In the year to 28th February 2010 the Company's overall portfolio return showed a strong recovery, rising by +42.6% over the twelve months in comparison with the composite benchmark's return of +45.2%. The Company continued to benefit from its modestly overweight allocation to equities during such a strong recovery by equity markets, and during the second half of the year the underlying equity portfolio showed improved relative performance.

 

In terms of contributors to performance over the twelve months, the Company benefited from its holdings in some of the mining stocks that delivered exceptionally strong returns, with the diversified miner BHP Billiton rising by 81% over the twelve months, whilst the copper miner, Antofagasta, rose by 100%. Some of the more cyclically oriented stocks that we owned, such as the industrial engineers Weir Group and IMI also contributed positively, returning 125% and 114% respectively, as they outperformed the rising market whilst beating expectations in their profit delivery. Some of our financial stocks also contributed positively to performance, including the global bank HSBC and the lowly valued investment bank Investec. However, some of our more high yielding and defensive stocks underperformed the market rally that was driven by the more cyclical and often non-dividend paying stocks. For example our holding in the major pharmaceutical stock, GlaxoSmithKline, detracted from performance despite delivering earnings and dividend growth, as it only rose by 14%. Similarly our telecom stocks, BT and Vodafone also detracted from performance, rising by only 27% and 13% respectively. Overall the portfolio delivered strong absolute returns over the year and the performance relative to its benchmark improved in the second half of the year.

 

Market Outlook

The UK stock market remains attractive for long-term investors, with favourable dividend yields and prospects for a strong earnings recovery in 2010. The UK economy has returned to growth and, with global demand increasing and sterling having weakened significantly over the last year, corporate earnings appear well supported. Although the UK equity market has risen by 47% in the last year, its price earnings valuation remains below its long term average.

 

However, there are several risks, most notably that worries over the UK budget deficit may re-emerge following the general election if no credible plan to address the issue emerges from the next Government. The key risk is that UK firms see profits growth curbed due to a mixture of weak consumption, higher taxes and government spending cuts. At the moment, however, the cyclical recovery may continue to surprise on the upside and the high proportion of international profits for FTSE companies is likely to be an advantage.

 

As highlighted above, UK equities look cheap versus their history, while dividend yields also remain attractive. Given the balance sheet strengthening we have seen over the last year and the improving economic backdrop, we may see increasing opportunities for corporate dividend growth as the year progresses.

 

John Baker

Sarah Emly

Investment Managers                                                                                                                                        

30th April 2010

 

Principal Risks

 

With the assistance of the Manager the Board has drawn up a risk matrix, which identifies the key risks to the Company. These key risks fall broadly under the following categories:

 

Investment and Strategy: An inappropriate investment strategy, for example asset allocation or the level of gearing, may lead to underperformance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount to NAV. The Board manages these risks by diversification of investments through its investment restrictions and guidelines, which are monitored and reported on by the Manager. JPMAM provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, liquidity reports and shareholder analyses.

 

The Board monitors the implementation and results of the investment process with the investment managers, who attend all Board meetings, and reviews data which show statistical measures of the Company's risk profile. The investment managers employ the Company's gearing tactically, within a strategic range set by the Board.

 

Market: Market risk arises from uncertainty about the future prices of the Company's investments. It represents the potential loss that the Company might suffer through holding investments in the face of negative market movements. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines, which are monitored and reported on by JPMAM. The Board monitors the implementation and results of the investment process with the Manager.

 

Accounting, Legal and Regulatory: In order to qualify as an investment trust, the Company must comply with Section 842 of the Income and Corporation Taxes Act 1988 ('Section 842'). Details of the Company's approval are given under 'Business of the Company' above. Were the Company to breach Section 842, it might lose investment trust status and, as a consequence, gains within the Company's portfolio could be subject to Capital Gains Tax. The Section 842 qualification criteria are continually monitored by JPMAM and the results reported to the Board each month. The Company must also comply with the provisions of the Companies Acts and, since its shares are listed on the London Stock Exchange, the UKLA Listing Rules. A breach of the Companies Acts could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the UKLA Listing Rules could result in the Company's shares being suspended from listing which in turn would breach Section 842. The Board relies on the services of its Company Secretary, JPMAM, to ensure compliance with The Companies Acts and The UKLA Listing Rules.

Corporate Governance and Shareholder Relations: Details of the Company's compliance with corporate governance best practice, including information on relations with shareholders, are set out in the Directors' Report in the Company's Annual Report & Accounts.

 

Operational: Disruption to, or failure of, JPMAM's accounting, dealing or payments systems or the custodian's records could prevent accurate reporting and monitoring of the Company's financial position. Details of how the Board monitors the services provided by JPMAM and its associates and the key elements designed to provide effective internal control are included within the Internal Control section of the Directors' Report in the Company's Annual Report & Accounts.

 

Financial: The financial risks faced by the Company include market price risk, interest rate risk, liquidity risk and credit risk. Bank counterparties are subject to daily credit analysis by the Manager and regular consideration at meetings of the Board.  In addition the Board receives regular reports on the Manager's monitoring and mitigation of credit risks on share transactions carried out by the Company. Further details are disclosed in note 23 of the Company's Annual Report & Accounts.

 

Directors' Responsibilities

 

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

 

a)             the financial statements have been prepared in accordance with applicable UK accounting standards, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

 

b)            the Annual Report, to be published shortly, includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

 

For and on behalf of the Board

Sir Laurence Magnus Bt

Chairman

30th April 2010

 

 

 

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.jpmincomeandcapital.co.uk

 

For further information please contact:

 

Divya Amin

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

020 7742 6000



Income Statement

 for the year ended 28th February 2010

 


2010

2009



Restated - see note 2(b)



Revenue

Capital

Total

Revenue

Capital

Total



£'000

£'000

£'000

£'000

£'000

£'000

Gains/(losses) on investments held at








  fair value through profit or loss


-

25,377

25,377

-

(37,134)

(37,134)

Income from investments


4,003

-

4,003

4,782

-

4,782

Other interest receivable and similar income


87

-

87

864

-

864

Gross return/(loss)


4,090

25,377

29,467

5,646

(37,134)

(31,488)

Management fee


(286)

(429)

(715)

(328)

(493)

(821)

Other administrative expenses


(391)

-

(391)

(440)

-

(440)

Net return/(loss) on ordinary activities








  before  finance costs and taxation


3,413

24,948

28,361

4,878

(37,627)

(32,749)

Finance costs - appropriations


-

(3,320)

(3,320)

-

(3,107)

(3,107)

Finance costs - other


(9)

(14)

(23)

(29)

(43)

(72)

Net return/(loss) on ordinary








  activities before  taxation


3,404

21,614

25,018

4,849

(40,777)

(35,928)

Taxation


-

-

-

(179)

140

(39)

Net return/(loss) on ordinary








  activities after taxation


3,404

21,614

25,018

4,670

(40,637)

(35,967)

Return/(loss) per class of share    (note 4)








Return/(loss) per Ordinary share


5.0p

32.0p

37.0p

7.3p

(63.4)p

(56.1)p

Return per Zero Dividend Preference share


-

7.2p

7.2p

-

6.7p

6.7p

 

Details of dividends paid and declared are given in note 3.

 

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year.

 

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies. The Total column represents all the information that is required to be disclosed in a Statement of Total Recognised Gains and Losses ('STRGL'). For this reason a STRGL has not been presented.

 



Reconciliation of Movements in Shareholders' Funds

 


Called up



Capital





share

Share

Other

redemption

Capital

Revenue



capital

premium

reserve

reserve

reserves

reserve

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

Opening balance at 3rd March 2008

-

-

-

-

-

-

-

Proceeds of placing and offer for subscription

622

61,628

-

-

-

-

62,250

Expenses of placing and offer for subscription

-

(623)

-

-

-

-

(623)

Stamp duty on in specie transfer

-

-

-

-

(211)

-

(211)

Cancellation of share premium account

-

(61,005)

61,005

-

-

-

-

Amortisation of expenses of the placing and








  offer for subscription

-

-

62

-

-

-

62

Issue of new Ordinary shares

61

3,640

-

-

-

-

3,701

Repurchase of Ordinary shares for cancellation

(8)

-

(712)

8

-

-

(712)

Net (loss)/return on ordinary activities

-

-

-

-

(40,637)

4,670

(35,967)

Dividends appropriated in the period

-

-

-

-

-

(2,388)

(2,388)

At 28th February 2009

675

3,640

60,355

8

(40,848)

2,282

26,112

Amortisation of expenses of the placing and offer








  for subscription

-

-

23

-

-

-

23

Net return on ordinary activities

-

-

-

-

21,614

3,404

25,018

Dividends appropriated in the year

-

-

-

-

-

(4,220)

(4,220)

At 28th February 2010

675

3,640

60,378

8

(19,234)

1,466

46,933

 



Balance Sheet

at 28th February 2010

 



2010

2009




Restated -




See note 2(b)



£'000

£'000

Fixed assets




Investments held at fair value through profit or loss


97,885

70,317

Investments in liquidity funds held at fair value through profit or loss


770

5,980



98,655

76,297

Current assets




Debtors


585

665

Cash and short term deposits


390

205



975

870

Creditors: amounts falling due within one year


(154)

(1,858)

Derivative instruments held at fair value through profit or loss - written options


(26)

-

Net current assets/(liabilities)


795

(988)

Total assets less current liabilities


99,450

75,309

Creditors: amounts falling due after more than one year




Capital entitlement of the Zero Dividend Preference shareholders


(52,517)

(49,197)

Total net assets


46,933

26,112

Capital and reserves




Called up share capital


675

675

Share premium


3,640

3,640

Other reserve


60,378

60,355

Capital redemption reserve


8

8

Capital reserves


(19,234)

(40,848)

Revenue reserve


1,466

2,282

Equity shareholders' funds


46,933

26,112

Net asset value per share (note 5)




Zero Dividend Preference share


114.0p

106.7p

Ordinary share


69.5p

38.7p

 

 

 

Company registration number: 6453183



Cash Flow Statement

for the year ended 28th February 2010

 



2010

2009




Restated -




see note 2(b)



£'000

£'000

Net cash inflow from operating activities


2,945

3,803

Returns on investments and servicing of finance




Interest paid


-

(10)

Net cash outflow from returns on investments and




  servicing of finance


-

(10)

Taxation




Corporation tax paid


(33)

-

Capital expenditure and financial investment1




Purchases of investments


(38,137)

(160,643)

Sales of investments


39,583

152,958

Other capital charges


(6)

(6)

Share placing and offer expenses paid


-

(626)

Income from options taken to capital


53

12

Net cash inflow/(outflow) from capital expenditure and




  financial investment


1,493

(8,305)

Total dividends paid


(4,220)

(2,388)

Net cash inflow/(outflow) before financing


185

(6,900)

Financing




Net cash received from the issue of Ordinary shares and




  Zero Dividend Preference shares as part of the scheme




  of reconstruction


-

4,063

Proceeds of the issue of new Ordinary shares


-

3,701

Proceeds of the issue of Zero Dividend Preference shares


-

53

Consideration paid for the repurchase of Ordinary shares for cancellation


-

(712)

Net cash inflow from financing


-

7,105

Increase in cash for the year


185

205

 

1Includes investment in equities, fixed interest securities, liquidity funds and options.

 

 



Notes to the Accounts

for the year ended 28th February 2010

 

1.             Comparative accounting period

                The comparative accounts cover the period from the date of incorporation on 13th December 2007 to 28th February 2009. The Company began investing on 3rd March 2008.

 

2.             Accounting policies

(a)           Basis of accounting

                The accounts are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' (the 'SORP') issued by the AIC in January 2009.

 

                The accounts have been prepared on a going concern basis.

 

                All of the Company's operations are of a continuing nature.

 

(b)           Change in accounting policy

The Company has early adopted an amendment to FRS 25: 'Financial instruments: presentation'. To date, both classes of the Company's shares have been classified in the accounts as liabilities due to the Company's limited life and the obligations attached to those share classes. The amendment requires the most subordinate class of shares to be classified as equity, where the Company is obliged to deliver a pro rata share of the net assets only on liquidation. Accordingly the balance sheet at 28th February 2009 has been restated to show the Ordinary shares as equity. Dividends paid on Ordinary shares are no longer included as a finance cost in the Income Statement. The annual amortisation of the expenses of the placing and offer for subscription has been re-calculated so that only those expenses attributable to the Zero Dividend Preference shares will be amortised over the life of the Company. A Reconciliation of Movements in Shareholders' Funds has been included in respect of the funds attributable to the Ordinary shares.

 

These changes are purely presentational and there has been no change to the assets attributable or rights and obligations attaching to either share class.

 

 

3.             Dividends

                Dividends paid and declared

 


2010

2009


£'000

£'000

Fourth quarterly dividend of 1.25p 

 844

N/a

Special dividend of 1.25p

 844

N/a

First quarterly dividend paid of 1.25p (2009: 1.25p)

 844

 775

Second quarterly dividend paid of 1.25p (2009: 1.25p)

 844

 769

Third quarterly dividend paid of 1.25p (2009: 1.25p)

 844

 844

Total dividends paid in the year

4,220

2,388

Fourth quarterly dividend declared of 1.25p (2009: 1.25p)

844

844

               

                The fourth quarterly dividend has been declared in respect of the year ended 28th February 2010 and is subject to approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the accounts for the year ending 28th February 2011.



 

4.      Return/(loss) per class of share

 

                Return/(loss) per Ordinary share is based on the following:


2010

2009


£'000

£'000

Revenue return

3,404

4,670

Capital return/(loss)

21,614

(40,637)

Total return/(loss)

25,018

(35,967)

Weighted average number of Ordinary shares in issue

67,506,782

64,084,669

Revenue return per share

5.0p

7.3p

Capital return/(loss) per share

32.0p

(63.4p)

Total return/(loss) per share

37.0p

(56.1p)

 

                Return per Zero Dividend Preference share is based on the following:


2010

2009


£'000

£'000

Capital return - compound growth entitlement

3,320

3,107

Weighted average number of Zero Dividend Preference shares in issue

46,087,200

46,051,012

Return per share

7.2p

6.7p

 

 

5.      Net asset value per share

 

                The net asset values per share calculated in accordance with the Articles of Association are as follows:

 


2010

2009


Net asset

Net assets

Net asset

Net assets


value per

attributable

value per

attributable


share in pence

£'000

share in pence

£'000

Zero Dividend Preference shares

114.0p

52,517

106.7p

49,197

Ordinary shares

69.5p

46,933

38.7p

26,112

 

6. Status of announcement

 

2009 Financial Information

The figures and financial information for 2009 are extracted from the published Annual Report and Accounts for the year ended 28th February 2009, and accordingly restated for the change in accounting policy in note 1(b) above, and do not constitute the statutory accounts for that year.  The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 237(2) or section 237(3) of the Companies Act 1985.

 

2010 Financial Information

The figures and financial information for 2010 are extracted from the Annual Report and Accounts for the year ended 28th February 2010 and do not constitute the statutory accounts for the year.  The Annual Report and Accounts includes the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.  The Annual Report and Accounts will be delivered to the Registrar of Companies in due course.

 

Annual Report and Accounts

The Annual Report and Accounts will be posted to shareholders on or around 11th May 2010 and will shortly be available on the Company's website (www.jpmincomeandcapital.co.uk) or in hard copy format from the Company's Registered Office, Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ.

 

JPMORGAN ASSET MANAGEMENT (UK) LIMITED


This information is provided by RNS
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