Interim Results

Deutsche Latin American Cos Tst PLC 22 October 2003 DEUTSCHE LATIN AMERICAN COMPANIES TRUST PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE HALF YEAR ENDED 31 AUGUST 2003 Extract from the Chairman's Statement I am pleased to report that our net asset value per share rose by 40.9% during the six months to 31 August 2003, slightly outperforming our benchmark, the MSCI Latin American Free Index, which rose by 40.4% during the same period. Our share price rose by 45.6%. This outperformance was achieved despite our overweight position in Mexico and lack of exposure to certain outperforming stocks in Brazil and Chile. Latin American equity markets have posted excellent returns during our half-year led by Brazil, which represents over 43% of the Index, up 59.6%, with its currency up 19.5% versus sterling. Chile, at 10.7% of the index, was the second best performer of the period, up 44.1% for the six months, while Mexico was up 25.2% with the peso declining slightly (-0.6%) against sterling for the period. Sentiment toward Latin America has remained positive this year, and this should continue into 2004. The continued strong macroeconomic fundamentals of the region argue that the major economies, with the exception of Argentina, are on a solid footing. Inflation is no longer a threat, interest rates are at historic lows (in the case of Mexico and Chile) or declining (Brazil) and the current account balances are much healthier than in the past. Of note, Brazil will post a surplus this year due to its continued strong trade balances. Exchange rates have stabilised and the fiscal accounts are in order. The main macroeconomic concern is growth and in that regard we are seeing signs of an incipient recovery in Brazil, although Mexico's economy still looks fairly anaemic. Stock valuations remain attractive even after the substantial increase in Brazilian price levels since October of last year. A return to sustainable GDP growth in Latin America could finally lead to the higher valuations we have looked for with equity returns in excess of earnings growth. In order to take advantage of this the Board intends, subject to market conditions, modestly to increase the level of gearing. Richard Watkins Chairman The financial information for the year ended 28 February 2003 is derived from the statutory accounts for 2003 which have been delivered to the Registrar of Companies. The Auditors have reported on the 2003 accounts; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The half-yearly report will be sent to shareholders and will also be made available to the public at the Company's registered office. By order of the Board M Pope Joint Secretary Registered Office: One Appold Street London EC2A 2UU 22 October 2003 For further information please contact: John Murray at Deutsche Asset Management Tel: 020 7545 6000 STATEMENT OF TOTAL RETURN (incorporating the revenue account*) Six months to 31 August 2003 Year to 28 February 2003 Six months to 31 August 2002 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Realised and unrealised gains/(losses) - 10,205 10,205 - (16,204) (16,204) - (12,030) (12,030) on investments Income 793 - 793 1,128 - 1,128 756 - 756 Investment management fee (139) - (139) (284) - (284) (184) - (184) Other expenses (132) - (132) (238) - (238) (130) - (130) ----------------------------------- Net return before finance costs and 522 10,205 10,727 606 (16,204) (15,598) 442 (12,030) (11,588) taxation Interest payable (50) - (50) (223) - (223) (188) - (188) ----------------------------------- Return on ordinary activities before 472 10,205 10,677 383 (16,204) (15,821) 254 (12,030) (11,776) tax Tax on ordinary activities (115) - (115) (89) - (89) (40) - (40) ----------------------------------- Return on ordinary activities after tax for the financial year attributable to equity 357 10,205 10,562 294 (16,204) (15,910) 214 (12,030) (11,816) shareholders Dividend in respect of equity shares - - - (143) - (143) - - - ----------------------------------- Transfer to reserves 357 10,205 10,562 151 (16,204) (16,053) 214 (12,030) (11,816) ============================================================= Return per ordinary share: 0.75p 21.34p 22.09p 0.61p (33.89)p (33.28)p 0.45p (25.16)p (24.71)p *The revenue column of this statement is the profit and loss account of the Company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period. The statement of total return, balance sheet and cash flow statement are unaudited. The figures in respect of the year to 28 February 2003 are taken from the full accounts which have been delivered to the Registrar of Companies and which contain an unqualified audit report. BALANCE SHEET as at 31 as at 28 as at 31 August 2003 February 2003 August 2002 £'000 £'000 £'000 Fixed assets Investments 39,272 28,285 30,338 ---------------------------------------- Current assets Debtors 188 211 41 Cash at bank and in hand 333 801 3,512 ---------------------------------------- 521 1,012 3,553 ---------------------------------------- Creditors: amounts falling due within one year (3,409) (3,479) (3,841) ---------------------------------------- Net current liabilities (2,888) (2,467) (288) ---------------------------------------- Total assets less current liabilities 36,384 25,818 30,050 ---------------------------------------- Provision for liabilities and charges (12) (8) (3) ---------------------------------------- Net assets 36,372 25,810 30,047 ---------------------------------------- Capital and reserves Called-up share capital 11,953 11,953 11,953 Share premium account 11,752 11,752 11,752 Other Reserves Special reserve 17,981 17,981 17,981 Warrant reserve 4,026 4,026 4,026 Warrant exercise reserve 3 3 3 Capital redemption reserve 4,089 4,089 4,089 Capital reserve - realised (19,858) (20,000) (17,694) Capital reserve - unrealised 4,799 (5,264) (3,396) Revenue reserve 1,627 1,270 1,333 ---------------------------------------- Total equity shareholders' funds 36,372 25,810 30,047 ---------------------------------------- Net asset value per ordinary share Basic 76.07 p 53.98 p 62.84 p Fully diluted 81.14 p 63.72 p 70.71 p Mid-market quotation of ordinary shares 62.25 p 42.75 p 51.00 p ======================================== CASH FLOW STATEMENT Six months to Year ended Six months to 31 August 2003 28 February 31 August 2002 2003 £'000 £'000 £'000 Reconciliation of operating profit to net cash inflow from operating activities Cash received from investments 756 1,081 768 Interest received 10 104 94 Cash received from stocklending - 1 - Investment management fees paid (132) (311) (204) Cash paid to and on behalf of directors (24) (49) (24) Other cash payments (69) (214) (147) ---------------------------------------- Net cash inflow from operating activities 541 612 487 ---------------------------------------- Servicing of finance Interest paid (38) (479) (467) ---------------------------------------- Net cash outflow from servicing of finance (38) (479) (467) ---------------------------------------- Taxation paid (65) (62) (39) Financial investment Purchase of investments (6,726) (17,139) (9,093) Sale of investments 5,967 14,952 9,592 ---------------------------------------- Net cash (outflow)/inflow from financial (759) (2,187) 499 investment ---------------------------------------- Equity dividends paid (143) (96) (96) Financing Partial repayment of US$15 million facility - (6,369) (6,369) ---------------------------------------- Decrease in cash (464) (8,581) (5,985) ---------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange

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