Preliminary Final Results
Aberdeen Asian Smaller Co's Inv Tst
25 September 2003
ABERDEEN ASIAN SMALLER COMPANIES INVESTMENT TRUST PLC
PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS
for the year ended 31 July 2003
Chairman's Statement
RESULTS and DIVIDEND
I am delighted to report that during this financial year and against an
uncertain global economic backdrop, the Company's net asset value ('NAV')
increased by 22.2% and the share price by 28.5%. This compares to a rise of
10.9% in the MSCI AC Asia Pacific Free ex-Japan Index.
During the year, the Company was awarded 1st place over one and five years in
the UK Investment Trusts Far East ex Japan sector by Standard and Poor's.
This excellent result underlines the investment approach of your Managers which
is to invest in companies that are well managed, have good growth prospects and
strong balance sheets. Despite the substantial increase in the NAV over the past
year, the quality of the portfolio has not declined. The Managers estimate that
the current portfolio is on a prospective price earnings ratio of just over 10
times based upon 2004 estimated earnings and a dividend yield of 4.2%. The
balance sheets of the underlying companies in which we invest are strong - in
aggregate they have no debt and are in a net cash position.
Your Board is pleased to recommend the payment of a final dividend of 3.1p
payable on 1 December 2003 to Ordinary Shareholders on the register on 31
October 2003, which is an increase of 17.0% against 2002.
DIRECTORATE
I would like to take this opportunity to welcome Miss Haruko Fukuda OBE to the
Board following her appointment in January 2003. Miss Fukuda brings a wealth of
international experience to the Board, which complements the skills of the
existing Directors. She will be standing for re-election at the forthcoming
Annual General Meeting.
GEARING
Over the last few years the Company has judiciously used gearing to enhance
investment performance. This is reviewed on a regular basis by the Board who, on
the advice of the Manager, are responsible for setting gearing levels. At 31
July 2003, gearing stood at 11.6% of the NAV of the Company.
OUTLOOK
Our confidence in the future for Asian markets rests mostly on factors internal
to Asia and on the attractive valuations of Asian stocks. The area is insulated
from the slow recovery in the major economies of North America and Europe by the
fact that it has large domestic markets and a higher proportion of savings which
can be directed towards consumption. Company profitability and retained earnings
are improving with excess cash being prudently used to pay higher dividends and
fund share buy-backs. Higher standards of corporate governance and greater
disclosure are becoming more prevalent. With these and other general more
positive factors in the region, your Board is confident that the current year
should result in further good performance.
ANNUAL GENERAL MEETING
The Board looks forward to meeting Shareholders at the Annual General Meeting to
be held on 27 November 2003 at 12.30p.m.
Nigel Cayzer
Chairman
25 September 2003
Statement of Total Return
Year ended Year ended
31 July 2003 31 July 2002
(unaudited) (audited)
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 8,340 8,340 - 6,037 6,037
Income 2,338 - 2,338 1,946 - 1,946
Investment management fee (454) - (454) (447) - (447)
Other expenses (331) - (331) (321) - (321)
Exchange gains - 62 62 - 105 105
Net return before finance
costs and taxation 1,553 8,402 9,955 1,178 6,142 7,320
Interest payable and similar charges (248) - (248) (122) - (122)
Return on ordinary activities
before taxation 1,305 8,402 9,707 1,056 6,142 7,198
Taxation on ordinary activities (471) - (471) (342) - (342)
Return on ordinary activities
after taxation 834 8,402 9,236 714 6,142 6,856
Dividends in respect of equity shares (829) - (829) (709) - (709)
Transfer to reserves 5 8,402 8,407 5 6,142 6,147
Return per Ordinary share (pence):
Basic 3.12 31.40 34.52 2.67 22.96 25.63
Fully-diluted 3.02 30.40 33.42 2.65 22.78 25.43
The revenue column of this statement represents the revenue account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
Balance Sheet
As at As at
31 July 2003 31 July 2002
(unaudited) (audited)
£'000 £'000
Fixed assets
Investments 51,979 43,537
Current assets
Debtors 232 223
Cash at bank and in hand 795 175
1,027 398
Creditors: amounts falling due within one year (3,812) (3,085)
Net current liabilities (2,785) (2,687)
Total assets less current liabilities 49,194 40,850
Creditors: amounts falling due after more than one year
Bank loan (2,798) (2,877)
46,396 37,973
Provisions for liabilities and charges (51) (35)
Net assets 46,345 37,938
Share capital and reserves
Called-up share capital 6,689 6,689
Capital redemption reserve 2,062 2,062
Special reserve 14,990 14,990
Other capital reserves:
Warrant reserve 2,275 2,275
Capital reserve - realised 11,453 10,586
Capital reserve - unrealised 8,616 1,081
Revenue reserve 260 255
Equity Shareholders' funds 46,345 37,938
Net asset value per Ordinary share (pence):
Basic 173.22 141.80
Fully-diluted 158.04 133.13
Cash Flow Statement
Year ended Year ended
31 July 2003 31 July 2002
(unaudited) (audited)
£'000 £'000 £'000 £'000
Net cash inflow from operating activities 1,218 887
Servicing of finance
Bank and loan interest paid (248) (82)
Net cash outflow from servicing of finance (248) (82)
Taxation
Net taxation paid (106) (71)
Financial investment
Purchases of investments (7,388) (15,980)
Sales of investments 7,274 10,177
Net cash outflow from financial investment (114) (5,803)
Equity dividends paid (709) (535)
Net cash inflow/(outflow) before financing 41 (5,604)
Financing
Drawdown of loans 602 5,062
Net cash inflow from financing 602 5,062
Increase in cash 643 (542)
Reconciliation of net cash flow to movements in net debt
Increase/(decrease) in cash as above 643 (542)
Cash inflow from drawdown of loans (602) (5,062)
Exchange movements 62 105
Movement in net funds/(debt) in the year 103 (5,499)
Opening net (debt)/funds (4,702) 797
Closing net debt (4,599) (4,702)
Notes:
1. Dividend
The Directors have today declared a first and final dividend of 3.10p per
Ordinary share for the year ended 31 July 2003 (2002 - 2.65p) which, if approved
by Shareholders at the Annual General Meeting, will be payable on 1 December
2003 to Shareholders on the register on 31 October 2003 (Provisional Ex-Dividend
29 October 2003).
2. Income
2003 2002
£'000 £'000
Income from investments
UK dividend income 80 71
Overseas dividends 2,246 1,860
2,326 1,931
Other income
Deposit interest 12 15
Total income 2,338 1,946
3. Return per Ordinary share
2003 2002
Revenue Capital Total Revenue Capital Total
Basic
Net revenue on Ordinary activities
After taxation (£'000) 834 8,402 9,236 714 6,142 6,856
Weighted average shares in issue 26,754,100 26,754,100 26,754,100 26,754,100 26,754,100 26,754,100
Basic return per Ordinary share (p) 3.12 31.40 34.52 2.67 22.96 25.63
Diluted
Number of dilutive shares 888,522 888,522 888,522 207,822 207,822 207,822
Diluted shares in issue 27,642,622 27,642,622 27,642,622 26,961,922 26,961,922 26,961,922
Diluted return per Ordinary share (p) 3.02 30.40 33.42 2.65 22.78 25.43
The basic revenue return per Ordinary share is based on net revenue on ordinary
activities after taxation of £834,000 (2002 - £714,000) and on 26,754,100 (2002
- 26,754,100) Ordinary shares, being the weighted average number of Ordinary
shares in issue during the year.
The basic capital return per Ordinary share is based on net capital gains for
the year of £8,402,000 (2002 - £6,142,000) and on 26,754,100 (2002 - 26,754,100)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the year.
The calculation of the fully diluted revenue and capital returns per Ordinary
share are carried out in accordance with Financial Reporting Standard No. 14,
'Earnings per Share'. For the purposes of calculating diluted revenue and
capital returns per Ordinary share, the number of Ordinary shares is the
weighted average used in the basic calculation plus the number of Ordinary
shares deemed to be issued for no consideration on exercise of all Warrants by
reference to the average share price of the Ordinary shares during the year. The
calculations indicate that the exercise of Warrants would result in an increase
in the weighted average number of Ordinary shares of 888,522 (2002 - 207,822) to
27,642,622 (2002 - 26,961,922) Ordinary shares.
4. Net asset value per share
The net asset value per share and the net asset values attributable to equity
Shareholders at the year end calculated in accordance with the Articles of
Association were as follows:
Net asset value Net asset values
per share attributable attributable
2003 2002 2003 2002
p p £'000 £'000
Basic 173.22 141.80 46,345 37,938
Fully-diluted 158.04 133.13
The movements during the year of the assets attributable to Ordinary shares were
as follows:-
2003 2002
£'000 £'000
Net assets attributable at 1 August 2002 37,938 31,791
Recognised gains for the year 9,236 6,856
Dividends appropriated in the year (829) (709)
Net assets attributable at 31 July 2003 46,345 37,938
The basic net asset value per Ordinary share is based on net assets, and on
26,754,100 (2002 - 26,754,100) Ordinary shares, being the number of Ordinary
shares in issue at the year end.
The fully-diluted net asset value per Ordinary share has been calculated on the
assumption that 6,999,400 (2002 - 6,999,400) Warrants in issue were exercised on
the first day of the financial year at 100p per share, giving an average of
33,753,500 (2002 - 33,753,500) Ordinary shares.
5. The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 July 2003 or 2002 The financial
information for 2002 is derived from the statutory accounts for 2002 which have
been delivered to the Registrar of Companies. The auditors have reported on the
2002 accounts; their report was unqualified and did not contain a statement
under section 237(2) or (3) of the Companies Act 1985. The statutory accounts
for 2003 will be finalised on the basis of the financial information presented
by the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies in due course.
6. Copies of the Annual Report will be posted to Shareholders shortly and
further copies may be obtained from the registered office, One Bow Churchyard,
Cheapside, London EC4M 9HH.
Aberdeen Asset Management PLC,
Secretaries.
25 September 2003
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