Final Results - Year Ended 30 November 1999
Finsbury Technology Trust PLC
25 February 2000
STOCK EXCHANGE ANNOUNCEMENT
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 NOVEMBER 1999
Finsbury Technology Trust PLC, which invests principally
in equity securities of quoted technology companies on a
world-wide basis, today announces preliminary results for
the year ended 30 November 1999.
1999 1998 % change
Total return per ordinary 221.9p 18.5p +1,099.5
share %
Net assets per ordinary share 363.4p 141.6p +156.6%
MSCI World Index (sterling 1,983 1,596 +24.2%
adjusted without dividends
reinvested
The Net Asset Value per share on 31 January 2000 was
470.5p.
The Company has not generated significant income and the
Directors are not proposing a dividend for the year
(1998: nil).
For and on behalf of Rea Brothers Limited - Secretary
24 February 2000
The following are attached:
* Chairman's Statement
* Balance Sheet of the Group and of the Company
* Consolidated Statement of Total Return
* Notes to the Preliminary Results
For further information please contact:
Dr Andrew Clark, Reabourne Ltd (020) 7426 4200
Colin Edge, Finsbury Asset Management (020) 7426 6233
Mark Mathias, Finsbury Asset Management (020) 7426 6240
Neil Mainland, Financial Dynamics (020) 7269 7245
Chairman's Statement
Results
The year ended 30 November 1999 was a spectacular one for
the Trust with the Net Asset Value per share ('NAV')
rising from 141.6p to 363.4p, an increase of 156.6% over
the year. In the same period, the benchmark index, the
Morgan Stanley Capital International World Index
(sterling adjusted and without dividends reinvested),
increased by 24.2%. Since the fund was launched in
December 1995 the NAV has risen by 274.6% against a rise
of 75.4% in the benchmark index. Shortly after the year
end Standard & Poor's Micropal calculated that Finsbury
Technology was the best performing investment trust over
3 years.
The Board has been concerned at the high level of
discount between the Trust's NAV and the share price. It
is pleasing to note that as at 30 November 1999 the share
price had increased from 108.5p to 346.5p with the
discount narrowing from 23.4% to 4.7%. On the day before
this statement the published share price was at a premium
to NAV.
Dividends
The companies within the Trust's portfolio typically
provide a very low yield. No dividend has been declared
in respect of the year ended 30 November 1999 (1998: nil)
and it is unlikely that a dividend will be paid for the
foreseeable future.
Review
During 1999 the technology sector was dominated by the
continuing explosive growth of the internet. Whilst the
internet provides enormous opportunities we remain
unconvinced by the valuations being placed on many
companies. Our Investment Advisers take a fundamental
approach to stock picking and focus on companies with
good long term growth potential. We have therefore tended
to avoid electronic retailers, which we believe will be
open to significant competitive pressures, and have
instead concentrated on companies which provide the
infrastructure to the internet such as Cisco, Verity and
Intelligent Environments.
After years of extensive research many biotechnology
companies have either obtained approval for their
products or are in late stage trials. These improved
prospects have led to a re-rating of the sector in the
US. In Europe the biotechnology rally started later and
was less emphatic but many stocks have still seen
impressive gains. Our most successful bioscience
investment was Aortech which has now obtained FDA
approval for its cardiac output monitoring device
technology; its share price increased fivefold over the
year. We believe that our other holdings in the sector,
such as Celltech, Proteome and Teva also have good
prospects.
It is gratifying that many of the Trust's best performing
investments over the year were based in the UK. Stellar
performers included Aortech (up 503%), ARM Holdings (up
1,020%), Intelligent Environments (up 606%), Psion (up
443%) and Recognition Systems (up 4,113%).
The boom in technology has continued since the year end
and at 31 January 2000, the Trust's NAV had risen to
470.5p per share.
Outlook
1999 was a remarkable year for the technology sector and
in the first two months of 2000 there has continued to be
strong performance. However the wall of money which has
been invested in the sector has resulted in some
indiscriminate buying and many stocks are on
stratospheric valuations, which provide little, if any,
cushioning against missed targets. Whilst there may be
some volatility over the next year, we continue to
believe that the long term case for investing in the
sector remains strong. The last century saw more
technological advancement than any other in the history
of mankind. With the internet still in its relative
infancy (particularly in Europe), the growth of mobile
communications, and the potentially stunning achievements
of biotechnology, we have every reason to believe that
the twenty-first century will be every bit as innovative
as the twentieth.
Bryan Lenygon
Chairman
24 February 2000
Finsbury Technology Trust PLC
Consolidated Statement of Total Return
incorporating the revenue account for the year ended 30
November 1999
Revenue Capital Total Revenue Capital Total
1999 1999 1999 1998 1998 1998
@000 @000 @000 @000 @000 @000
Gains/(losses) on - 73,293 73,293 - 5,323 5,323
investments
Exchange gains on - 24 24 - 101 101
currency balances
Investment Income 108 - 108 117 - 117
Other income 475 - 475 122 - 122
Investment management (729) (13,973) (14,702) (380) (17) (397)
fees
Other expenses (278) - (278) (203) - (203)
Net return before (424) 59,344 58,920 (344) 5,407 5,063
finance
costs and taxation
Interest payable (28) - (28) (137) - (137)
and similar charges
Return on ordinary (452) 59,344 58,892 (481) 5,407 4,926
activities before
taxation
Taxation on ordinary (9) - (9) (18) - (18)
activities
Return on ordinary (461) 59,344 58,883 (499) 5,407 4,908
activities after
taxation
Dividends in respect - - - - - -
of equity shares
Transfer to/(from) (461) 59,344 58,883 (499) 5,407 4,908
reserves
Return per equity (1.7p) 223.6p 221.9p (1.9p) 20.4p 18.5p
share
Finsbury Technology Trust PLC
Balance Sheet of the
Group and of the Company
as at 30 November 1999
Group Group Company Company
1999 1998 1999 1998
@'000 @'000 @'000 @'000
Fixed Asset Investments
Investment in subsidiary
undertaking - - 376 76
Other investments 104,309 37,385 104,309 37,385
104,309 37,385 104,685 37,461
Current Assets
Debtors 1,495 884 1,345 928
Investments 6 125 - -
Cash at Bank 7,393 447 7,393 447
8,894 1,456 8,738 1,375
Creditors
Amounts falling due (9,840) (1,088) (10,060) (1,083)
within one year
Net current liabilities (946) 368 (1,322) 292
Total assets less 103,363 37,753 103,363 37,753
current liabilities
Creditors
Amounts falling due (6,908) (181) (6,908) (181)
after more than one year
Net current assets 96,455 37,572 96,455 37,572
Capital and reserves
Called up share capital 6,635 6,635 6,635 6,635
Share premium account 19,095 19,095 19,095 19,095
Capital reserve - 19,059 10,763 19,059 10,763
realised
Capital reserve - 53,230 2,182 53,606 2,258
unrealised
Revenue reserve (1,564) (1,103) (1,940) (1,179)
Total shareholders' 96,455 37,572 96,455 37,572
funds
Net asset value per 363.4p 141.6p 363.4p 141.6p
ordinary share
Notes to the Preliminary Results
These accounts are not statutory accounts. The above
results are an abridged version of the full annual
accounts for the year ended 30 November 1999 which will
be delivered to the Registrar of Companies in due course.
Statutory accounts for the 12 months ended 30 November
1998 have been delivered to the Registrar of Companies
and received an audit report which was unqualified and
did not contain statements under Section 237 (2) and (3)
of the Companies Act 1985.
There were 26,539,250 (1998: 26,539,250) ordinary shares
of 25p in issue throughout the year.
Rea Brothers Limited - Secretary
24 February 1999
Latest directors dealings
- 11 minutes ago Helios Underwriting
- 32 minutes ago SSE
- 1 hour ago Judges Scientific
- 1 hour ago AB Dynamics
- 1 hour ago Henry Boot