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TR European Growth (TRG)

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Thursday 17 February, 2011

TR European Growth

Half Yearly Report

RNS Number : 4268B
TR European Growth Trust PLC
17 February 2011
 



Page 1 of 16

17 February 2011

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

This announcement contains regulated information

 

 

HIGHLIGHTS

 

31 December

2009

(Unaudited)

£'000



31 December

2010

(Unaudited)

£'000

30 June

2010

(Audited)

£'000

 

 

%

change

247,800


Total assets

260,379

204,330

+27.4






247,269


Total net assets

254,718

199,477

%


divided between:

%

%

90.1


Quoted equities

94.9

87.5

7.6


Unquoted equities

7.2

9.1

2.3


Net current (liabilities)/assets

(2.1)

3.4

-------



-------

-------

100.0



100.0

100.0

  ====



  ====

====






431.28p


Net asset value per ordinary share

501.74p

386.38p



Net asset value total return








397.00p


Ordinary share price

409.25p

346.50p



Share price total return










Benchmark



499.86


* HSBC Smaller Europe (ex UK) Index  

586.84

460.07














* Indices expressed on a total return basis; source: Datastream

†  Source: AIC


 

 

 

 

 

 

- MORE -



Page 2 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

INTERIM MANAGEMENT REPORT

 

Chairman's Statement

 

Performance

The six month period to 31 December 2010 was a strong time for European equity markets as investor confidence returned. I am pleased to announce that our NAV total return per share was 31.1% over the period as compared to 27.6% for our benchmark. The share price total return was 19.3%, as our discount widened over the period.

 

Material events

We were delighted with the level of shareholder support given to our continuation vote which was approved at our AGM in November 2010.  In addition, shareholders unanimously approved the resolutions to modify the discount protection mechanism, to change the benchmark to the HSBC Smaller Europe (ex UK) Index, and to hold continuation votes every three years.

 

Share buy-backs

We have continued with our commitment to buy back our own shares for cancellation and during the six months to 31 December 2010, we bought back 860,060 shares at a cost of £3,246,000.  These were all done at a discount to the net asset value per share, thus enhancing the net asset value for the remaining shareholders. 

 

The Board

Jochen Neynaber stepped down from the Board at the conclusion of our AGM in November 2010.  I would like to express our gratitude for Jochen's excellent contribution during his nine years as a director. 

 

Prospects, principal risks and uncertainties

A degree of confidence has certainly returned to European equity markets. Driven by the strength of export markets, the central and northern European economies have shown good signs of recovery. The picture is less positive in southern Europe where unsustainably high levels of both corporate and government debt continue to cause significant problems.

 

Concerns over debt, and the likely impact of its restructuring on financial institutions across Europe, are likely to remain a touchpoint for market concern periodically over the year to come.  The success of the Chinese authorities in controlling inflation will be another key indicator for market sentiment.

 

However, this is not an unfavourable environment for European smaller companies, particularly compared with the potential returns on offer from other asset classes. There are likely to be bouts of volatility, but it is the periods of negative sentiment which may well provide our manager with the opportunities to add to our holdings at attractive levels. I look forward to reporting our progress in our annual report.

 

Audley Twiston-Davies

Chairman

 

 - MORE -

 



 

Page 3 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

 

Manager's Report

 

The six months to 31 December 2010 were characterised by increasing investor confidence as companies reported stronger profits, driven mainly by cost cutting and the strength of export markets, particularly in Asia and Latin America.

 

A strong contributor to performance for us was Wirecard. This German company provides electronic transaction systems which enable websites to accept online payments. As more and more shopping moves online, the company has managed to grow its profits at a rapid pace. The trend of using the internet for shopping has also been positive for our holding in Yoox. This Italian company sells designer fashion via its website, Yoox.com. It also operates the webshops and infrastructure for many of its famous customers, such as Dolce & Gabbana and Armani.

 

 

Geographical distribution (% of portfolio)

 


31 December 2010

30 June 2010

Austria

3.8

4.7

Belgium

1.4

1.4

Bulgaria

-

0.1

Finland

0.6

0.8

France

17.7

19.6

Germany

27.3

24.4

Greece

-

0.7

Ireland

-

1.3

Italy

3.7

4.1

Kazakhstan

1.6

2.5

Luxembourg

-

3.2

Netherlands

3.6

6.2

Norway

10.7

4.6

Romania

0.7

0.8

Russia

0.6

0.1

Spain

5.8

6.9

Sweden

3.1

0.9

Switzerland

14.8

11.1

Turkey

3.1

4.0

Ukraine

0.7

0.8

Other

0.8

1.8

 

-------

-------

 

100.0

100.0

 

====

====

 

 

- MORE -

 

 

 

Page 4 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

Manager's Report (continued)

 

We also had a strong performance from OHL, the Spanish construction and concessions company. This is a great illustration that investing is all about digging under the surface to find out what makes individual companies different. On the surface, a Spanish construction company would not seem to be a very good thing to be at the moment - however, this particular company makes the majority of its profits from outside of Spain. It has been building up its concessions business (mainly toll roads) in Latin America for a number of years, and recently it separately listed its Mexican subsidiary on the Mexican Stock Exchange, thus showing even more clearly to investors the value that it has been creating.

 

Other strong contributors included Andritz, the Austrian specialist engineering group which continued to build its long track record of profitable growth, and Clariant, the Swiss specialty chemicals business where a combination of recovering demand and restructuring improved the outlook.

 

Another feature of the last six months has been the strengthening of the oil price and this has led to strong performances from a number of companies broadly exposed to the sector. We had a strong performance from Norwegian Energy, the oil and gas exploration and production company focused on the Norwegian shelf. We also had a good contribution from Schoeller-Bleckmann, the Austrian producer of specialist components for the drilling industry as their customers started to increase their spending.

 

Our poorest performers were generally companies which struggled with operational difficulties.

 

Our worst performer was Bank of Ireland. The perennial problem of being prepared to take a contrarian view is the risk of being too early. Our reasoning was that after the restructuring of the entire Irish banking sector, the competitive position and hence the ability to make profits of Bank of Ireland would be considerably strengthened. However, we were too optimistic in our view that the true scale of the problems associated with overleveraged Irish property investments was already properly understood.

 

We also had a negative contribution from A-TEC Industries, the Austrian engineering group which suffered ultimately from too high a debt burden. The group has had to undergo a severe restructuring process of selling off assets, under the control of its lenders.

 

Other poor performers included Safwood, the Italian lumber producer which has suffered from productivity problems exacerbated by tight liquidity, and Hi-Media, the French internet marketing company which struggled to generate the levels of profitability expected.

 

We added a number of new holdings in companies from a range of different industries.

 

We bought a holding in Atos Origin. This French IT services company has been undergoing a long restructuring programme under its new management and has been building up a number of specialist businesses, such as transaction processing. It has recently further expanded by buying the IT services division of Siemens.

 

 

- MORE -

 

 

 

Page 5 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

Manager's Report (continued)

 

We added a position in Axel Springer. This German media group has a very strong position in the German market with its dominant tabloid called Bild. In recent years, it has been growing its traditional publishing business by expanding into Eastern Europe. It has also been investing strongly into online assets and now has one of the most extensive online business portfolios in Europe.

 

Another German company which we bought was Carl Zeiss Meditec. They are a leading medical technology company producing equipment for ophthalmology and microsurgery and have a strong track record of innovative product offerings.

 

gategroup is a Swiss listed airline catering company which supplies a number of the world's largest airlines with both food and other services. The company continues to grow as it increases both its customer list and the breadth of services that it provides to them.

 

Another food-related company that we bought was Morpol. This Norwegian company is a salmon processor. The company has a strong competitive position and highly efficient processing capacity. It is the world leader in smoked salmon products.

 

We noted earlier that high leverage is often the downfall of many companies, even if their core business is a good one. This was the case of Schmolz + Bickenbach, a Swiss listed speciality steel business which had to undergo a very significant recapitalisation. This was highly dilutive to the existing shareholders but provided a very attractive entry point for new shareholders.

 

We sold a number of holdings, mostly to recycle the money into other holdings which we believed had better potential. These included Sevan Marine, the Norwegian offshore drilling company, Realia, the Spanish real estate concern, Rhön-Klinikum, the German hospital operator, and ArcelorMittal, the world's largest steel producer. We also sold our holding in Smartrac, the German producer of RFID inlays for smartcards which was subject to a takeover bid.

 

Sector distribution (% of portfolio)

 


31 December 2010

30 June 2010

Basic materials

22.3

23.1

Business providers

14.8

12.8

Consumer goods

11.6

13.2

Financials

10.5

13.8

Industrial goods

10.1

12.2

Natural resources

9.7

7.7

Retail providers

7.5

4.3

Technology

13.5

12.9

 

-------

-------

 

100.0

100.0

 

====

====

 

- MORE -

 

Page 6 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

 

Manager's Report (continued)

 

The weighted average market capitalisation of the portfolio at 31 December 2010 was £1,859m, compared to £2,248m at 30 June 2010, reflecting the first signs of the refocusing of the portfolio on the smaller and medium end of our investment universe, following our policy review earlier in the year.

 

Outlook

It continues to be an extraordinary time for European equity markets. Since the depths of the financial crisis in 2008, there has clearly been a rebound of economic activity, mainly driven by exporters supplying the rapidly growing economies of the Far East, particularly China. The combination of growing demand and lean cost bases after the cost cutting programmes of recent years has meant strong profit growth for many companies, with Germany being a notable beneficiary, given its heritage of industrial exporters. The situation in other parts of Europe has been far less rosy. The situation in Greece, Spain and Ireland particularly has been one of the economies and governments struggling with unsustainably high levels of debt, much of which ultimately stemmed from imprudent loans linked to property bubbles. Stuck with a lack of competitiveness and unable to devalue in order to ease the situation, the outlook for these countries is likely to be a prolonged period of government austerity and constrained economic activity, coupled with some form of debt restructuring.

 

Concerns about debt restructuring, both corporate (particularly banks) and sovereign, will be persistent and likely lead to periods of market worry.

 

The other global issue that investors are focused on is Chinese inflation and how aggressively the authorities will act to try to control it. The Far East will remain an engine of economic growth for some time to come, but the pace may slow somewhat over the shorter term.

 

Despite some of these macro concerns, the environment for many European smaller companies is relatively benign, with interest rates remaining low and cash flow generation being good.

 

Markets are likely to remain volatile, subject to sporadic bouts of nervousness, but this should remain a fertile hunting ground for stockpicking in European smaller companies. Our approach remains the same, which is to buy good companies where we can find them at attractive prices. We feel confident that there are opportunities to be found in this market environment and we are committed to searching them out.

 

 

Stephen Peak, Simon Savill, Ollie Beckett

 

 

 

 

- MORE -

 



Page 7 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

Consolidated Statement of Comprehensive Income

for the half year ended 31 December 2010

 

 


Half year ended 31 December 2010

(Unaudited)

Half year ended 31 December 2009

(Unaudited)

Year ended 30 June 2010

(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

356

-

356

597

-

597

3,489

-

3,489

Other income

11

-

11

195

-

195

287

-

287

Gains on investments held at fair value through profit or loss

-

61,266

61,266

-

62,267

62,267

-

34,905

34,905


----------

----------

----------

----------

----------

----------

----------

----------

----------

Total income

367

61,266

61,633

792

62,267

63,059

3,776

34,905

38,681


----------

----------

----------

----------

----------

----------

----------

----------

----------











Expenses










Management fees

(121)

(486)

(607)

(129)

(515)

(644)

(242)

(968)

(1,210)

Other expenses

(290)

-

(290)

(266)

-

(266)

(547)

-

(547)


----------

----------

----------

----------

----------

----------

----------

----------

----------

(Loss)/profit before finance costs and taxation

(44)

60,780

60,736

397

61,752

62,149

2,987

33,937

36,924











Finance costs

(7)

(27)

(34)

-

-

-

(2)

(8)

(10)


----------

----------

----------

----------

----------

----------

----------

----------

----------

(Loss)/profit before taxation

(51)

60,753

60,702

397

61,752

62,149

2,985

33,929

36,914











Taxation

(37)

-

(37)

(73)

-

(73)

(459)

-

(459)


----------

----------

----------

----------

----------

----------

----------

----------

----------

(Loss)/profit for the period

(88)

60,753

60,665

324

61,752

62,076

2,526

33,929

36,455


======

======

======

======

======

======

======

======

======











Earnings per ordinary share (note 2)

(0.17p)

118.57p

118.40p

0.52p

99.64p

100.16p

4.31p

57.95p

62.26p


======

======

======

======

=======

=======

=====

=======

=======











 

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.

 

The net profit of the Company for the half year was £60,665,000 (31 December 2009: £62,076,000; 30 June 2010: £36,455,000).

 

The Group does not have any other comprehensive income and hence the net profit for the period as disclosed above is the same as the Group's total comprehensive income.

 

 

- MORE -


Page 8 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

Consolidated Statement of Changes in Equity

for the half year ended 31 December 2010

 

 

Half year ended

31 December 2010

(Unaudited)

Called up 

share

capital

£'000

Share

premium

 account

£'000

Capital redemption reserve

£'000

Other

capital

reserves

£'000

Revenue reserve

£'000

Total

£'000

Total equity at 30 June 2010

6,453

115,451

13,725

47,286

16,562

199,477

Total comprehensive income:

   Profit/(loss) for the period

-

-

-

60,753

(88)

60,665

Transactions with owners,

recorded directly to equity:   







   Ordinary dividends paid

-

-

-

-

(2,178)

(2,178)

   Buy-backs of ordinary shares

(107)

-

107

(3,246)

-

(3,246)


----------

----------

----------

----------

---------

-----------

Total equity at 31 December 2010

6,346

115,451

13,832

104,793

14,296

254,718


======

======

======

======

=====

======










 

Half year ended

31 December 2009

(Unaudited)

Called up share

capital

£'000

Share

premium

account

£'000

Capital redemption reserve

£'000

Other

capital

reserves

£'000

 

Revenue reserve

£'000

 

 

Total

£'000

Total equity at 30 June 2009

8,059

115,451

12,119

62,270

17,499

215,398

Total comprehensive income:

   Profit for the period

-

-

-

61,752

324

62,076

Transactions with owners, recorded directly to equity:







   Ordinary dividends paid

-

-

-

-

(3,465)

(3,465)

   Buy-backs of ordinary shares

(892)

-

892

(26,740)

-

(26,740)


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

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

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

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

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

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

Total equity at 31 December 2009

7,167

115,451

13,011

97,282

14,358

247,269


=======

=======

=======

=======

=======

=======










Year ended 30 June 2010

(Audited)

Called up share

capital

£'000

Share

premium

account

£'000

Capital redemption reserve

£'000

Other

capital

reserves

£'000

Revenue reserve

£'000

Total

£'000

Total equity at 30 June 2009

8,059

115,451

12,119

62,270

17,499

215,398

Total comprehensive income:

   Profit for the period

-

-

-

33,929

2,526

36,455

Transactions with owners, recorded directly to equity:







   Ordinary dividends paid

-

-

-

-

(3,463)

(3,463)

   Buy-backs of ordinary shares

(1,606)

-

1,606

(48,913)

-

(48,913)


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

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

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

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

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

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

Total equity at 30 June 2010

6,453

115,451

13,725

47,286

16,562

199,477


=======

=======

=======

=======

=======

=======

 

 

 

- MORE -



Page 9 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

Consolidated Balance Sheets

at 31 December 2010

 



31 December 2010

(Unaudited)

£'000

31 December 2009

(Unaudited)

£'000

30 June 2010

(Audited)

£'000

Non current assets





Investments held at fair value through profit or loss


260,064

241,586

192,719



-----------

-----------

-----------

Current assets





Sales for future settlement


-

-

9,947

Taxation recoverable


284

177

344

Other receivables


28

59

190

Cash and cash equivalents


3

5,978

1,130



-----------

-----------

-----------



315

6,214

11,611



-----------

-----------

-----------

Total assets


260,379

247,800

204,330



-----------

-----------

-----------

Current liabilities





Purchases for future settlement


-

-

(96)

Accruals


(431)

(404)

(383)

Amounts due on repurchase of shares


(132)

(127)

(492)

Bank overdrafts


(5,098)

-

(3,882)



-----------

-----------

-----------



(5,661)

(531)

(4,853)



-----------

-----------

-----------

Net assets


254,718

247,269

199,477



=======

=======

=======











Equity attributable to equity shareholders





Called up share capital (note 3)


6,346

7,167

6,453

Share premium account


115,451

115,451

115,451

Capital redemption reserve


13,832

13,011

13,725

Retained earnings:





   Other capital reserves


104,793

97,282

47,286

   Revenue reserve


14,296

14,358

16,562



-----------

-----------

-----------

Total equity


254,718

247,269

199,477



======

======

======






Net asset value per ordinary share (note 4)


501.74p

431.28p

386.38p



======

======

======

 

 

 

 

 

 

- MORE -



Page 10 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

 

Consolidated Cash Flow Statement

for the half year ended 31 December 2010

 

 


Half year ended

31 December 2010

(Unaudited)

£'000

Half year ended

31 December 2009

(Unaudited)

£'000

Year ended

30 June 2010

(Audited)

£'000

Net cash inflow from operating activities

(note 5)

3,538

6,854

19,726


----------

----------

---------

Net cash inflow before use of financing

3,538

6,854

19,726

Net cash outflow from financing activities

(5,784)

(31,506)

(53,297)


----------

-----------

-----------

Net decrease in cash and cash equivalents

(2,246)

(24,652)

(33,571)

Cash and cash equivalents at the start of the

   period

(2,752)

30,709

30,709

Exchange movements

(97)

(79)

110


----------

----------

---------

Cash and cash equivalents at the period end

(5,095)

5,978

(2,752)


======

======

=====





 

 

 

 

- MORE -



Page 11 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

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 and financial statements for the year ended 30 June 2010 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's financial statements consolidate the accounts of the Company and of its wholly owned subsidiary undertaking, TREG Finance Limited.

 

2.   Earnings per ordinary share

The earnings per ordinary share figure is based on the profit for the half year of £60,665,000 (half year ended 31 December 2009: £62,076,000; year ended 30 June 2010: £36,455,000) and on 51,236,535 (half year ended 31 December 2009: 61,974,946; year ended 30 June 2010: 58,554,559) ordinary shares, being the weighted average number of ordinary shares in issue during the period. 

 

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

 



Half year ended

31 December 2010

(Unaudited)

£'000

Half year ended

31 December 2009

(Unaudited)

£'000

Year ended

30 June 2010

(Audited)

£'000

Net revenue (loss)/profit

(88)

324

2,526

Net capital profit

60,753

61,752

33,929


----------

----------

----------

Net total profit

60,665

62,076

36,455


======

======

======





Weighted average number of ordinary

     shares in issue during the period

51,236,535

61,974,946

58,554,559

 



Half year ended

31 December 2010

(Unaudited)

Pence

Half year ended

31 December 2009

(Unaudited)

Pence

Year ended

30 June 2010

(Audited)

Pence

Revenue earnings per ordinary share

(0.17)

0.52

4.31

Capital earnings per ordinary share

118.57

99.64

57.95


----------

----------

----------

Total earnings per ordinary share

118.40

100.16

62.26


======

======

======

 

 

 

 

 

- MORE -



 

Page 12 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

Notes (continued)

 

3.   Ordinary share capital

At 31 December 2010 there were 50,767,229 ordinary shares in issue (31 December 2009: 57,334,021; 30 June 2010: 51,627,289).  During the half year ended 31 December 2010 the Company bought 860,060 of its own issued ordinary shares for cancellation (31 December 2009: 7,141,834; 30 June 2010: 12,848,566).  The cost of the share buy-backs, including stamp duty, amounted to £3,246,000 (31 December 2009: £26,740,000; 30 June 2010: £48,913,000).

 

4.   Net asset value per ordinary share

The net asset value per ordinary share is based on the net assets attributable to equity shareholders of £254,718,000 (31 December 2009: £247,269,000; 30 June 2010: £199,477,000) and on 50,767,229 (31 December 2009: 57,334,021; 30 June 2010: 51,627,289) ordinary shares, being the number of ordinary shares in issue at the period end.

 

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

 


Half year ended

31 December

2010

(Unaudited)

£'000


Half year ended

31 December

2009

(Unaudited)

£'000


Year ended

30 June

2010

(Audited)

£'000

Profit before taxation

60,702


62,149


36,914

Gains on investments held at fair value

(61,266)


(62,267)


(34,905)

Decrease in accrued income

162


418


287

Increase/(decrease) in accruals

48


22


(14)

Taxation on overseas investment income

23


50


(512)

Decrease/(increase) in sales settlement debtor

9,947


197


(9,750)

Decrease in VAT recoverable

-


323


323

Decrease in purchases settlement creditor

(96)


(2,277)


(2,181)

Net (purchases)/sales of investments

(5,982)


8,239


29,564


----------


-----------


----------


3,538


6,854


19,726


======


======


======

 

6.   Interim dividend

The Company has not declared an interim dividend (2009: nil).

 

7.   Transaction costs

Purchase transaction costs for the half year ended 31 December 2010 were £46,000 (half year ended 31 December 2009: £63,000; year ended 30 June 2010: £143,000).  These comprise mainly stamp duty and commission. Sales transaction costs for the half year ended 31 December 2010 were £77,000 (half year ended 31 December 2009: £106,000; year ended 30 June 2010: £192,000).

 

 

 

- MORE -



Page 13 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

Notes (continued)

 

8.   Going concern

The directors believe that it is appropriate to adopt the going concern basis in preparing the financial statements.  The assets of the Group consist mainly of securities that are readily realisable and, accordingly, the Group has adequate financial resources to continue in operational existence for the foreseeable future. 

 

9.   Related party transactions

Details of related parties are contained in the annual report.  Other than fees payable by the Company in the ordinary course of business, there have been no material transactions with our related parties affecting the financial position or performance of the Group during the six months to 31 December 2010.

 

10.   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 2010 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 30 June 2010 have been filed with the Registrar of Companies. The report of the auditors on those financial statements contained no qualification or statement under section 498(2) or 498(3) of the Companies Act 2006.

 

11.   Half year report

A copy of the Company's report for the half year ended 31 December 2010 will be posted to shareholders on 2 March 2011 and will be available on our website (www.treuropeangrowth.com) thereafter.  Copies can also be requested from the Secretary at the Registered Office, 201 Bishopsgate, London EC2M 3AE.

 

 

 

 

 

- MORE-



Page 14 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

List of Investments as at 31 December 2010

 


Valuation

£'000

% of total

portfolio



Valuation

£'000

% of total

portfolio

Austria




Germany



A-TEC Industries

1,148



Axel Springer

5,993


Andritz

5,213



Bauer

4,961


Schoeller-Bleckmann

3,416



BrainLAB *

6,693



-------

-------


Brenntag

3,539



9,777

3.8


Carl Zeiss Meditec

2,778



====

====


Continental

3,500


Belgium




Fresenius

6,383


EVS Broadcast Equipment

3,705



Gerresheimer

3,016



-------

-------


Heidelbergcement

5,011



3,705

1.4


Kabel Deutschland

2,617



====

====


Kinghero

3,586


Bulgaria




Saf-Holland

2,984


Trans Balkans Investments

-



Tom Tailor

3,900



-------

-------


United Internet

2,595



-

0.0


Uzin Utz

3,474



====

====


Volkswagen

3,696






Washtec

1,231


Finland




Wirecard

5,167


Ponsse

1,662




--------

-------


-------

-------



71,124

27.3


1,662

0.6



=====

====


====

====









Italy



France




Aeffe

966


21 Centrale Partners III *

9,313



Azimut

3,749


21 Développement *

103



Elica

1,238


Atos Origin

3,434



Safwood

504


Batla Minerals

1,439



Yoox

3,044


Cafom

2,071




-------

-------

CFAO

2,503




9,501

3.7

CFI

1,388




====

====

Dietswell Engineering

875



Kazakhstan



Haulotte

2,097



KazMunaiGas

4,049


Hi-Media

3,170



ShalkiyaZinc

35


Medica

2,327




-------

-------

Rhodia

3,703




4,084

1.6

STS Group †

6,996




====

====

Televista

356






Vallourec

6,269



Netherlands




---------

-------


Aalberts Industries

4,089



46,044

17.7


Binckbank

2,393



=====

====


Wavin

2,851







--------

-------






9,333

3.6






=====

====











































 

- MORE-



Page 15 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

List of Investments as at 31 December 2010 (continued)

 


Valuation

£'000

% of total portfolio



Valuation

£'000

% of total portfolio

Norway




Switzerland



Morpol

2,193



Acino

1,159


Northland Resources

6,969



Clariant

5,469


Norwegian Energy

5,442



Compagnie Financière Tradition

3,204


Prospector Offshore

2,854



Dufry

4,375


Statoil Fuel & Retail

2,080



Gam Holding

3,811


Storebrand

4,791



gategroup

3,910


Tomra

3,393



Lifewatch

1,536



--------

-------


Myriad

2,136



27,722

10.7


Partners Group

3,639



=====

====


Schmolz + Bickenbach

6,369






Temenos

2,925


Romania





--------

-------

A&D Pharma

1,928




38,533

14.8


-------

-------



=====

====


1,928

0.7






====

====


Turkey







Selçuk Ecza Deposu

8,031


Russia





--------

-------

AFI Development

1,547




8,031

3.1


-------

-------



=====

====


1,547

0.6






====

====


Ukraine







Avangardco

1,852


Spain





--------

-------

Grifols

2,731




1,852

0.7

OHL

9,061




=====

====

Vueling Airlines

3,184







--------

-------


Other




14,976

5.8


Doughty Hanson & Co Fund III *

1,968



=====

====


IFR Capital *

150







--------

-------

Sweden





2,118

0.8

Byggmax

2,483




=====

====

Lindab

2,514






Nordic Mines

423



Total Portfolio

260,064

100.0

Unibet

2,707




======

====


-------

-------






8,127

3.1


† More than one class of security




====

====


* Unquoted investments



 

 

- MORE-



Page 16 of 16

TR EUROPEAN GROWTH TRUST PLC

 

Unaudited Results for the Half Year ended 31 December 2010

 

 

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 IAS34;

 

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).

 

Audley Twiston-Davies

Chairman

 

 

 

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 -

 

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

 

 


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