Preliminary Interim Results
Aberdeen Asian Smaller Co's Inv Tst
27 March 2001
ABERDEEN ASIAN SMALLER COMPANIES INVESTMENT TRUST PLC
ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS
for the six months ended 31 January 2001
The last six months have been difficult for Asian stock markets, but for once
this has been largely due to factors from outside the region, primarily the
slowdown in demand for new technology products and the impact of such a
slowdown on global stock market ratings, starting with the US NASDAQ. As such
Asia has been relatively spared. I use the word 'relative', given that your
Company's net asset value has fallen 8.6% during the six month period under
review to 31 January 2001. This compares to a fall of 9.2% in the MSCI AC Asia
Pacific ex Japan index.
The downturn in US demand is undoubtedly having an effect upon Asia,
especially on those countries with a large electronics sector, such as Korea,
Singapore and Taiwan. As far as your Company is concerned, however, we have a
small exposure to technology/electronics counters having taken the opportunity
of last year's boom to take profits.
Our concerns at the macro level in Asia still have more to do with the pace of
reform, the maintenance of social harmony and the battle against corruption.
There remains much to be achieved on all these fronts, but overall steady
progress is being maintained.
Within your portfolio, there has been a continuation of the stream of
corporate activity we have been seeing over recent years. For example, we
sold our holding of Clipsal, a leading maker of plastic light switches, to
Schneider of France, who are seeking to expand their presence in Asia. As of
the time of writing most companies in which we invest have released their 2000
year end results. Generally these have shown a strong year-on-year
improvement, and it is encouraging to see that reflected in raised dividend
payments. It is too early to predict the outcome for 2001 with a high degree
of confidence, but we do expect profits for our investee companies to register
another year of growth of around 10-15%, albeit at a lower rate than 2000. The
value offered by Asian smaller companies is still outstanding.
As expected, since the period end the NASDAQ has led declines in Asia's more
developed markets, after a sharp rally early in the year. By contrast our
preferred markets have held up well, and earnings visibility continues to look
good.
Nigel Cayzer
Chairman
27 March 2001
The unaudited results were:
Statement of total return (incorporating the revenue account *)
For the six months to 31 January 2001
Six months ended 31 January 2001
(unaudited)
Revenue Capital Total
£'000 £'000 £'000
Losses on investments - (3,268) (3,268)
Income 828 - 828
Investment management fee (214) - (214)
Other expenses (116) - (116)
Exchange losses - (29) (29)
_______ _______ _______
Net return before finance
costs and taxation 498 (3,297) (2,799)
Interest payable and
similar charges (93) - (93)
_______ _______ _______
Return/(loss) on ordinary
activities before taxation 405 (3,297) (2,892)
Tax on ordinary activities (156) - (156)
_______ _______ _______
Transfers to/(from) reserves 249 (3,297) (3,048)
======= ======= =======
Return/(loss) per Ordinary share
(pence):
Basic 0.84 (11.08) (10.24)
======= ======= =======
Six months ended 31 January 2000
(unaudited)
Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 8,137 8,137
Income 508 - 508
Investment management fee (156) - (156)
Other expenses (148) - (148)
Exchange gains - 11 11
_______ _______ _______
Net return before finance
costs and taxation 204 8,148 8,352
Interest payable and
similar charges (54) - (54)
_______ _______ _______
Return on ordinary
activities before taxation 150 8,148 8,298
Tax on ordinary
activities (53) - (53)
_______ _______ _______
Return on ordinary
activities after taxation 97 8,148 8,245
Dividends and other appropriations - - -
_______ _______ _______
Transfers to reserves 97 8,148 8,245
======= ======= =======
Return per Ordinary share
(pence):
Basic 0.28 23.33 23.61
======= ======= =======
* The Statements of Total Return above are presented in accordance with the
Statement of Recommended Practice for Financial Statements of Investment Trust
Companies
Balance Sheet of the Company as at 31 January 2001
31 January 31 January 31 July
2001 2000 2000
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Fixed assets
Investments 37,407 42,294 38,693
________ ________ ________
Current assets
Debtors 434 178 160
Cash at bank and in hand 674 1,298 1,010
________ ________ ________
1,108 1,476 1,170
Creditors: amounts falling
due within one year (3,028) (5,235) (1,321)
________ ________ ________
Net current liabilities (1,920) (3,759) (151)
________ ________ ________
Total assets less current
liabilities 35,487 38,535 38,542
Provision for liabilities
and charges (15) (9) (22)
________ ________ ________
Total net assets 35,472 38,526 38,520
======== ======== ========
Share capital and reserves
Called-up share capital 7,439 7,875 7,439
Capital redemption reserve 1,312 875 1,312
Special reserve 17,746 19,593 17,746
Other reserves
Warrant reserve 2,275 2,275 2,275
Capital reserve - realised 5,171 (3,751) 4,837
Capital reserve - unrealised 1,040 11,323 4,671
Revenue reserve 489 336 240
________ ________ ________
Total equity shareholders'
funds 35,472 38,526 38,520
======== ======== ========
Net asset value per Ordinary
share (pence):
Basic 119.22 122.30 129.46
======== ======== ========
Diluted 115.56 118.25 123.85
======== ======== ========
Cash Flow Statement of the Company
For the six months to 31 January 2001
Six months ended Six months ended
31 January 31 January
2001 2000
(unaudited) (unaudited)
£'000 £'000
Net cash inflow from operating activities 413 203
Net cash outflow from servicing of finance (89) (57)
Net tax recovered - 268
Net cash outflow from financial investment (2,268) (510)
Equity dividends paid (363) (91)
_______ _______
Net cash outflow before financing (2,307) (187)
Net cash inflow/(outflow) from financing 2,000 (153)
_______ _______
Decrease in cash (307) (340)
======= =======
Reconciliation of operating revenue to net
cash inflow from operating activities
Net revenue before interest
payable and taxation 498 204
Decrease in accrued income 12 54
Decrease/(increase) in other debtors 2 (5)
Increase in other creditors 14 18
UK Income tax deducted at source (3) (14)
Overseas withholding tax suffered (110) (54)
_______ _______
413 203
======= =======
Reconciliation of net cash flow
to movement in net funds/(debt)
Decrease in cash as above (307) (340)
Cash inflow from increase in loans (2,000) -
Exchange movements (29) (5)
_______ _______
Movement in net debt in the period (2,336) (345)
Net funds/(debt) at 1 August 260 (107)
_______ _______
Net debt at 31 January (2,076) (452)
======= =======
Represented by:
Cash at bank 674 1,298
Debt falling due within one year (2,750) (1,750)
_______ _______
(2,076) (452)
======= =======
Notes:
1 In accordance with stated policy no interim dividend has been declared
(2000 - nil).
2 The breakdown of income for the periods to 31 January 2001 and 31 January
2000 was as follows:
31 January 31 January
2001 2000
£'000 £'000
Income from investments
Unfranked investment income 820 471
Other income
Deposit interest 8 37
_______ _______
Total income 828 508
======= =======
3 The basic revenue return per Ordinary share is based on net revenue on
ordinary activities after taxation of £249,000 (2000 - £97,000) and on
29,754,100 (2000 - weighted average of 34,924,513) Ordinary shares, being the
number of Ordinary shares in issue throughout the period.
The basic capital loss per Ordinary share is based on net capital losses of
£3,297,000 (1999 - gains of £8,148,000) and on 29,754,100 (2000 - weighted
average of 34,924,513) Ordinary shares, being the number of Ordinary shares in
issue throughout the period.
The fully-diluted returns per Ordinary share have not been shown as they are
in excess of basic earnings per share for both periods.
4 The basic net asset value per Ordinary share is based on net shareholders'
funds at the period end, and on 29,754,100 (31 January 2000 - 31,500,600; 31
July 2000 - 29,754,100) Ordinary shares, being the number of Ordinary shares
in issue at the period end.
The fully-diluted net asset value per Ordinary share has been calculated on
the assumption that the 6,999,400 Warrants in issue (31 January 2000 -
6,999,400; 31 July 2000 - 6,999,400) were exercised on the first day of the
financial period at 100p per share giving a total of 36,753,500 (31 January
2000 -38,500,000; 31 July 2000 - 36,753,500) Ordinary shares.
5 The financial information for the six months ended 31 January 2001 and 31
January 2000 comprises non-statutory accounts within the meaning of Section
240 of the Companies Act 1985. The financial information for the year ended 31
July 2000 has been abridged from published accounts that have been delivered
to the Registrar of Companies on which the report of the auditors was
unqualified.
6 Copies of the Interim Report will be posted to shareholders as soon as
possible and will be available at the Company's registered office, One
Bow Churchyard, Cheapside, London EC4M 9HH.
Aberdeen Asset Management PLC
Secretaries
27 March 2001
Independent Review Report by Ernst & Young to
Aberdeen Asian Smaller Companies Investment Trust PLC
We have been instructed by the Company to review the financial information set
out above and we have read the other information contained in the Interim
Report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors' Responsibilities
The Interim Report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where they are
to be changed in the next annual accounts, in which case any changes, and the
reasons for them, are disclosed.
Review Work Performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4: Review of Interim Financial Information issued by the Auditing
Practices Board. A review consists principally of making enquiries of
management and applying analytical procedures to the financial information and
underlying financial data and, based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed. A review is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.
Review Conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 January 2001.
Ernst & Young
Registered Auditor
London 27 March 2001
Latest directors dealings
- 17 minutes ago Oxford Nanopore Technologies
- 1 hour ago AVI Global Trust
- 1 hour ago LSL Property Services
- 1 hour ago Bluebird Merchant Ventures (DI)
- 1 hour ago Power Probe PLC