Interim Results
RIT Capital Partners PLC
31 October 2002
31 October 2002
PRELIMINARY ANNOUNCEMENT FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2002
The following is the Chairman's Statement which will appear in the interim
report.
During the half year to 30 September, your Company's net asset value per share
declined by 11.9%, from 483.4p to 425.7p. Over the same period, the Morgan
Stanley Capital International Index (in Sterling), the FTSE All-Share Index and
the Investment Trust Net Assets Index declined by 33.4%, 29.6% and 27.8%
respectively. Although we have suffered a reduction in our net asset value
during the exceptionally difficult conditions of the six months under review, we
draw comfort from the fact that our cautious stance has enabled us to outperform
the most relevant indices by a significant margin.
In my Chairman's Statement in May of this year, I commented that we remained
sceptical about the level of world stock markets. In view of the fragility of
the international economic and political situation, we have maintained a
cautious investment policy, retaining an element of liquidity and a high degree
of diversification. However, we remain ready to take advantage of the depressed
levels of markets, which are beginning to offer some attractive opportunities.
Our liquidity, held mainly in the form of government securities, provides the
capacity to address these opportunities. At 30 September this amounted to some
£119 million, or 19% of the portfolio, compared with 16% at 31 March.
RITCP's net asset value per share at 29 October was 431.4p.
INVESTMENT PORTFOLIO
The asset allocation within the portfolio has remained broadly unchanged since
31 March. We benefited from a further reduction in our exposure to the US
dollar during the period under review.
At 30 September, £218 million, or 34% of the portfolio, was held directly in
quoted investments. A further £108 million, or 17% of the portfolio, was held
in funds (principally hedge funds) which invest mainly in quoted securities.
Taking these two categories together (but excluding our holdings of government
securities), some 51% of the portfolio was invested in quoted or other
marketable securities. The diversification of the portfolio, particularly into
areas which are less directly correlated to stock markets, has continued to
support our performance during difficult market conditions.
The overall exposure of your Company to unquoted investments results either from
investments made directly by RITCP's own management, or from investments in
externally managed partnerships which make private equity investments. In
total, some £169 million, or 26% of the portfolio, was invested in this sector:
£122 million, or 19%, by our own management and £47 million, or 7%, through our
investments in limited partnerships managed by third parties.
The valuations of our own unquoted investments have been subject to review by a
committee of independent non-executive directors. Similarly, we have adjusted
the valuations of our holdings in limited partnerships, by making provisions
where appropriate.
RESULTS
In monetary terms, the reduction in your Company's net assets over the six
months to 30 September amounts to £91 million, of which £93 million was
attributable to capital, offset by a £2 million revenue profit.
In line with our established policy, RITCP will not be paying an interim
dividend.
For further information please contact:
Duncan Budge 020-7514 1928
CONSOLIDATED STATEMENT OF TOTAL RETURN
for the six months ended 30 September 2002
Revenue Capital Total
£'000 £'000 £'000
Losses on investments - (121,720) (121,720)
Dealing profits 165 - 165
Investment income:
Dividends and interest 7,876 - 7,876
Income from investment properties 443 - 443
Other income 160 - 160
Administrative expenses (3,101) - (3,101)
Investment management fees (1,665) 3 (1,662)
Other capital items - 26,942 26,942
Net return/(loss) before finance costs
and taxation 3,878 (94,775) (90,897)
Interest payable and similar charges (103) - (103)
Return/(loss) on ordinary activities
before taxation 3,775 (94,775) (91,000)
Taxation on ordinary activities (1,137) 1,583 446
Return/(loss) on ordinary activities
after taxation attributable to
equity shareholders 2,638 (93,192) (90,554)
Transfer to/(from) reserves 2,638 (93,192) (90,554)
Return/(loss) per ordinary share 1.7p (59.4)p (57.7)p
The revenue column of this statement is the consolidated profit and loss account
of the Group.
The accompanying notes are an integral part of this statement.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the period.
CONSOLIDATED STATEMENT OF TOTAL RETURN
Restated for the six months ended 30 September 2001
Revenue Capital Total
£'000 £'000 £'000
Losses on investments - (80,478) (80,478)
Dealing losses (2,687) - (2,687)
Investment income:
Dividends and interest 9,511 - 9,511
Income from investment properties 452 - 452
Other income 250 - 250
Administrative expenses (2,935) - (2,935)
Investment management fees (1,515) - (1,515)
Other capital items - 5,490 5,490
Net return/(loss) before finance costs
and taxation 3,076 (74,988) (71,912)
Interest payable and similar charges (145) - (145)
Return/(loss) on ordinary activities
before taxation 2,931 (74,988) (72,057)
Taxation on ordinary activities (733) 658 (75)
Return/(loss) on ordinary activities
after taxation attributable to
equity shareholders 2,198 (74,330) (72,132)
Transfer to/(from) reserves 2,198 (74,330) (72,132)
Return/(loss) per ordinary share 1.4p (47.4)p (46.0)p
The revenue column of this statement is the consolidated profit and loss account
of the Group.
The accompanying notes are an integral part of this statement.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the period.
CONSOLIDATED BALANCE SHEET
Restated
30 September 31 March 30 September
2002 2002 2001
£'000 £'000 £'000
Fixed assets
Investments 638,915 769,467 666,581
Tangible fixed assets 202 206 239
639,117 769,673 666,820
Current assets 58,989 44,434 90,792
Creditors: Amounts falling due
within one year (3,056) (24,921) (62,092)
Net current assets 55,933 19,513 28,700
Total assets less current
liabilities 695,050 789,186 695,520
Creditors: Amounts falling due
after more than one year
Bank loans (20,866) (21,167) -
Provisions for liabilities and
charges (6,430) (9,744) (7,864)
667,754 758,275 687,656
Capital and reserves
Called up share capital 156,848 156,848 156,848
Capital redemption reserve 33,308 33,308 33,308
Capital reserve - realised 530,855 536,654 511,471
Capital reserve - unrealised (80,852) 6,541 (43,222)
Revenue reserve 27,595 24,924 29,251
Equity shareholders' funds 667,754 758,275 687,656
Net asset value per
ordinary share 425.7p 483.4p 438.4p
CONSOLIDATED CASH FLOW STATEMENT
Period Ended Year Ended Period Ended
30 September 31 March 30 September
2002 2002 2001
£'000 £'000 £'000
Cash (outflow)/inflow from
operating activities (1,389) 6,327 5,227
Servicing of finance
Bank and loan interest paid (109) (274) (143)
Net cash outflow from
servicing of finance (109) (274) (143)
Taxation
UK tax paid (82) (436) (299)
UK tax received - - 316
Overseas tax paid (528) (565) (509)
Net cash outflow from taxation (610) (1,001) (492)
Financial investment
Purchase of investments (192,847) (449,127) (227,089)
Sale of investments 197,740 398,695 200,396
Net cash inflow/(outflow)
from financial investment 4,893 (50,432) (26,693)
Capital expenditure
Purchase of fixed assets (49) (59) (41)
Sale of fixed assets 6 10 9
Net cash outflow from
capital expenditure (43) (49) (32)
Equity dividends paid (4,862) (4,862) (4,862)
Net cash outflow
before management of liquid
resources and financing (2,120) (50,291) (26,995)
Management of liquid resources
Purchase of government
securities (77,986) (363,451) (157,180)
Sale of government securities 81,162 391,271 160,933
Net cash inflow from
management of liquid resources 3,176 27,820 3,753
Financing
Increase in term loan - 21,167 -
Net cash inflow from financing - 21,167 -
Increase/(decrease) in cash
in the period 1,056 (1,304) (23,242)
NOTES
1 ACCOUNTING POLICIES
The accounting policies used by the Group in the preparation of this interim
report are consistent with those applied in preparing statutory accounts for the
year ended 31 March 2002. As at 31 March 2002 the Group changed its accounting
policy in order to comply with Financial Reporting Standard 19, Deferred Tax and
the results for the period ended 30 September 2001 have been restated
accordingly.
2 MOVEMENTS IN FIXED ASSET INVESTMENTS
Unquoted
and Government Funds and
Quoted Property Securities Partnerships Total
£'000 £'000 £'000 £'000 £'000
At 31 March 2002 298,028 166,146 119,746 185,547 769,467
Additions 145,112 31,795 77,986 4,928 259,821
Disposals (160,288) (21,857) (80,481) (4,805) (267,431)
Revaluation (65,109) (28,984) 2,164 (31,013) (122,942)
At 30 September 2002 217,743 147,100 119,415 154,657 638,915
3 MOVEMENTS IN RESERVES
Capital
Redemption Capital Revenue
Reserve Reserve Reserve
£'000 £'000 £'000
At 31 March 2002 33,308 543,195 24,924
Profit for the period - - 2,638
Capital loss for the period - (93,192) -
Other movements - - 33
At 30 September 2002 33,308 450,003 27,595
4 LITIGATION
In November 1997 proceedings were issued in the New York Courts against a total
of ten defendants, including the Company, by Richbell Information Services Inc.
('RIS') and certain connected entities. The proceedings relate to the Company's
investment in H-G Holdings Inc. and a loan made to RIS by the Company's
wholly-owned subsidiary, Atlantic and General Investment Trust Limited. The
claim against all of the defendants was for approximately US$240 million. On 11
March 2002 the New York Court dismissed the proceedings in their entirety. On 2
April 2002 the plaintiffs filed an appeal against that decision; this appeal has
not yet been heard by the New York Court.
Based upon legal advice received, the Directors believe that neither the appeal
nor the underlying proceedings, should they be reinstated, will have a material
effect on the financial position of the Company.
5 STATUTORY ACCOUNTS
The financial information in this publication is unaudited and does not
constitute statutory accounts. The statutory accounts for the year ended 31
March 2002 have been delivered to the UK Registrar of Companies and the report
of the auditors on those accounts was unqualified.
6 INTERIM REPORT
The Company's Interim Report for the six months ended 30 September 2002 will be
posted to shareholders on Monday, 4 November 2002. Copies of this announcement
and the Interim Report will be available to the public at the Company's
registered office at 27 St James's Place, London SW1A 1NR.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 24 minutes ago South32 Limited (DI)
- 1 hour ago Trustpilot Group
- 1 hour ago On The Beach Group
- 1 hour ago Impax Asset Management Group
- 1 hour ago Vianet Group