Interim Results
MORGAN GRENFELL LATIN AMERICAN COMPANIES TRUST PLC
20 October 1999
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE HALF YEAR ENDED 31 AUGUST 1999
EXTRACT FROM THE CHAIRMAN'S STATEMENT
The Brazilian devaluation in January has proved to be a turning point; since
then most Latin American markets have shown strong recovery although gains
were trimmed in July and August as markets responded to concerns about
increasing US interest rates. During the six months between the end of
February and August the MSCI Latin American Free Index rose 23.1% in
sterling value, led by a 30.8% increase in Brazil. Argentina was the next
best performing market with a gain of 25.7%. Mexico rose 21.4% and Chile
21.8%. The smaller markets lagged with Peru up 11.8% but Venezuela only
up 5.1% and Colombia declining 16.5%. Our net asset value per share
slightly underperformed the benchmark index with a gain of 21.9%; during this
period we moved from an underweight to an overweight position in Brazil
and our Brazilian shares did not quite match that market's return. However,
we did outperform the Argentine market and we matched the Mexican return.
Over one year our net asset value per share has increased by 34.4%. Our
share price has performed in line with the net asset value rising from 46.0p
at the end of February to 56.5p at the end of August, a 22.8% increase. There
has been little change in the discount to net asset value which stood at 21.9%
at the interim stage; the Board has continued to use its powers to repurchase
for cancellation a total of 1,350,000 shares during the period and we have
also given our full support to the recent initiative of the Association
of Investment Trust Companies to promote greater interest in the industry
through the 'its' campaign.
The main driving force behind the recovering markets has been a sharp fall
in interest rates, particularly in Brazil and Mexico; in both countries
rates have dropped from levels of over 40% at the time of the devaluation
to under 20% currently. Not only is there a direct relationship between
falling interest rates and improving sentiment which leads to rising stock
markets, there is also now an expectation of improving economic activity
throughout most of the region.
J.W.R. Shakespeare
Chairman
The financial information for the year ended 28 February 1999 is derived
from the statutory accounts for 1999 which have been delivered to the
Registrar of Companies. The Auditors have reported on the 1999 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 Registered Office:
P A Hogwood 20 Finsbury Circus
Secretary London EC2M 1NB
For further information please contact:
James Fox or Rosie Bichard at Deutsche Asset Management
Tel: 0171 545 6000
SIX MONTHS ENDED 31 AUGUST 1999
Prelimary announcement
31 August 1999 28 February 1999 31 August 1998
Net Asset Value per
Ordinary Share
Basic 72.3p 59.3p 53.8p
Fully Diluted 77.1p 66.2p 61.5p
Statement of Total Return (incorporating the revenue account*)
Six months to Year to 28 Six months to
31 August 1999 February 1999 31 August 1998
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses)
on investments - 7,837 7,837 - (22,418)(22,418) - (25,992)(25,992)
Income 639 - 639 1,823 - 1,823 987 - 987
Investment
management
fee (317) - (317) (545) - (545) (303) - (303)
Other expenses (88) - (88) (289) - (289) (135) - (135)
Net return
before finance
costs and
taxation 234 7,837 8,071 989 (22,418)(21,429) 549 (25,992)(25,443)
Interest
payable (1) - (1) - - - - - -
Return on ordinary
activities before
tax 233 7,837 8,070 989 (22,418)(21,429) 549 (25,992)(25,443)
Tax on ordinary
activities (36) - (36) (315) - (315) (150) - (150)
Return on ordinary
activities after
tax for the period
attributable to
equity
shareholders 197 7,837 8,034 674 (22,418)(21,744) 399 (25,992)(25,593)
Dividend in
respect of
equity shares - - - (411) - (411) - - -
Transfer to/
(from)
reserves 197 7,837 8,034 263 (22,418)(22,155) 399 (25,992)(25,593)
Return per
ordinary
share:
Basic and
Diluted 0.31p 12.50p 12.81p 1.06p (35.07)p (34.01)p 0.62p (40.54)p (39.92)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 the period.
The statement of total return is unaudited. The comparative figures in respect
of the year to 28 February 1999 are derived from the full accounts which have
been delivered to the Registrar of Companies and which contain an unqualified
audit report.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund