Interim Results
Bankers Investment Trust PLC
24 June 2002
24 June 2002
THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
HIGHLIGHTS
* Net asset value per ordinary share up by 10.2% as compared
to a rise of 4.1% in the FTSE All-Share Index
* Second interim dividend of 1.68p net per ordinary share
(2001: 1.64p)
Extracts from the Chairman's Statement
Assets
I am pleased to report some excellent relative and absolute performance for the
first half of the year. Over the six months to 30 April the net asset value
increased by 10.2% compared to a rise of 4.1% in the FTSE All-Share Index. For
the first two months of the half year most equity markets continued the strong
recovery since the shock of 11 September. However, good news on the US economic
recovery was tempered by profit warnings and the continued deterioration of TMT,
and since January most equity markets have been drifting sideways. Fortunately,
the rather pedestrian performance by the major indices has masked a welcome
return to a broader market, helping small and mid-cap companies. Our strong
performance can largely be attributable to very good stock selection in the UK,
Europe, Japan and the Pacific. North America, where we have achieved good
results in the past, proved more difficult for us.
Earnings and Dividend
Earnings per share decreased by 3.3% compared to the first half of last year
principally because of dividend cuts and a reduction in special dividends. The
revenue forecast for the year, is favourable and the Company expects total
earnings to exceed the minimum forecast total dividend of 6.72p per share, an
increase of 2.1% over last year.
Management
As announced on 17 May 2002 Michael Moule, who has been the Company's manager
since 1977, will retire from Henderson on 30 June 2003. The deputy manager, Alex
Crooke will become the manager of Bankers on 1 July 2003. He has worked on
investment trusts since joining Henderson in 1994, and has been the fund manager
of Henderson High Income Trust plc since 1996. The Company is confident that
Alex and the team of specialist geographical managers are well placed to
maintain the investment style and performance of Bankers, thus enabling a smooth
management transition. Michael Moule has a long association with Bankers and the
Company is delighted that it will continue to have the benefit of his experience
as a director.
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
Outlook
The increasingly important US economy continues to make slow but steady progress
principally assisted by the consumer who has been encouraged to maintain his
lifestyle through tax cuts and record low interest rates. However, the recovery
in corporate profitability is so far not sufficiently robust to sustain a strong
rise in capital spending.
In the UK the deferred increase in national insurance announced in the recent
budget is bound to have an adverse effect on companies' attempts to improve
profitability. Continental Europe is now experiencing political upheavals as the
electorate begins to realise that the well meaning social democrats have failed
to provide the enterprise culture to create new jobs.
The fastest growth in the world is in the Far East where the flexible export
driven economies have seen a strong recovery. The buoyancy of the region and
improvement in exports has helped the recovery in Japan.
Economic growth probably is better than expected. However, concerns remain about
the outlook for corporate profits growth and there is a lack of confidence in
reported profit figures. Equity markets are still suffering from the problems of
past excesses. We consider that the current volatility in equity markets
provides good long term opportunities for our Company.
For further information contact:
Michael Moule
The Bankers Investment Trust PLC
Tel: 020 7818 4100
Stephen Westwood
Head of Investment Trusts
Tel: 020 7818 5517
Vicki Staveacre
Henderson Press Office
Tel: 020 7410 4222
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
HIGHLIGHTS
(Unaudited) (Audited) %
30 April 31 October Change
2002 2001
Assets
Total assets less current liabilities (£'000) 442,599 404,063 +9.5
Net asset value per ordinary share 330.0p 299.4p +10.2
Ordinary share mid-market price 318.3p 280.5p +13.5
Discount (Share Price to Net Asset Value) 3.5% 6.3%
Indices
FTSE All-Share Index 2,512.04 2,413.50 +4.1
Standard & Poor's Composite Index 1,076.92 1,059.78 +1.4*
FTSE World Europe (ex UK) Index (£) 274.81 260.64 +5.4
TOPIX (Tokyo First Section Index) 1,082.06 1,059.37 -2.8*
FTSE World (ex UK) Index (£) 267.67 259.77 +3.0
50/50 FTSE All-Share/ 207.20 200.00 +3.6
FTSE World (ex UK) (£)
*£ adjusted
(Unaudited) (Unaudited)
Half year ended Half year ended %
30 April 2002 30 April 2001 Change
Revenue
Gross revenue (£'000) 6,074 6,916 -12.2
Earnings per ordinary share 3.48p 3.60p -3.3
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
Group Statement of Total Return (incorporating the revenue account*)
for the half year ended 30 April 2002
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 April 2002 30 April 2001 31 October 2001
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Total capital gains/ - 39,572 39,572 - (8,819) (8,819) - (80,550) (80,550)
(losses) from investments
Income from fixed asset 5,719 - 5,719 6,374 - 6,374 12,062 - 12,062
investments
Other interest receivable 355 - 355 542 - 542 790 - 790
and
similar income
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Gross revenue and capital 6,074 39,572 45,646 6,916 (8,819) (1,903) 12,852 (80,550) (67,698)
gains/(losses)
Management fee (645) (574) (1,219) (685) (600) (1,285) (1,388) (1,215) (2,603)
Other administrative (319) - (319) (770) - (770) (1,075) - (1,075)
expenses
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net return/(loss) on
ordinary 5,110 38,998 44,108 5,461 (9,419) (3,958) 10,389 (81,765) (71,376)
activities before finance
costs
and taxation
Interest payable and (361) (843) (1,204) (365) (852) (1,217) (727) (1,697) (2,424)
similar
charges
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net return/(loss) on 4,749 38,155 42,904 5,096 (10,271) (5,175) 9,662 (83,462) (73,800)
ordinary
activities before
taxation
Taxation on net return on (361) 233 (128) (371) 223 (148) (800) 489 (311)
ordinary activities
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net return/(loss) on 4,388 38,388 42,776 4,725 (10,048) (5,323) 8,862 (82,973) (74,111)
ordinary
activities after taxation
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Dividends - ordinary
shares
Over provision in prior - - - 219 - 219 219 - 219
year
1st interim 1.68p (2001: (2,120) - (2,120) (2,069) - (2,069) (2,069) - (2,069)
1.64p)
2nd interim 1.68p (2001: (2,120) - (2,120) (2,069) - (2,069) (2,069) - (2,069)
1.64p)
3rd interim (2001: 1.64p) - - - - - - (2,069) - (2,069)
Final (2001: 1.66p) - - - - - - (2,094) - (2,094)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
(4,240) - (4,240) (3,919) - (3,919) (8,082) - (8,082)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Transfer to/(from) 148 38,388 38,536 806 (10,048) (9,242) 780 (82,973) (82,193)
reserves
===== ===== ===== ===== ===== ===== ====== ====== =====
Return/(loss) per 3.48p 30.42p 33.90p 3.60p (7.65p) (4.05p) 6.88p (64.44p) (57.56p)
ordinary
Share (note 1)
===== ===== ===== ===== ===== ===== ====== ====== =====
* The revenue columns of this statement represent the revenue accounts of the
Group.
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
GROUP BALANCE SHEET
at 30 April 2002
(Unaudited) (Unaudited) (Audited)
At 30 April 2002 At 30 April At 31 October 2001
2001
£'000 £'000 £'000
Fixed asset investments:
Listed at market value
In Great Britain 260,698 271,738 233,134
Outside Great Britain 177,673 206,324 164,091
Other quoted funds 3,220 5,538 4,545
Unlisted - directors' valuation 1,350 1,500 1,500
---------- ---------- ----------
Total fixed asset investments 442,941 485,100 403,270
---------- ---------- ----------
Current assets
Investments 67 14 83
Debtors 6,015 4,963 3,343
Bank balances and short term deposits 15,121 6,289 16,697
---------- ---------- ----------
21,203 11,266 20,123
Creditors: amounts falling due within one year (21,545) (16,523) (19,330)
---------- ---------- ----------
Net current (liabilities)/assets (342) (5,257) 793
---------- ---------- ----------
Total assets less current liabilities 442,599 479,843 404,063
Creditors: amounts falling due after more than one year (26,300) (29,129) (26,300)
---------- ---------- ----------
Total net assets 416,299 450,714 377,763
====== ====== ======
Capital and reserves
Called-up share capital 31,542 31,542 31,542
Share premium account 452 452 452
Other reserves 367,081 401,618 328,693
Revenue reserve 17,224 17,102 17,076
---------- ---------- ----------
Equity shareholders' funds 416,299 450,714 377,763
====== ====== ======
Net asset value per ordinary share (note 2) 330.0p 357.2p 299.4p
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
GROUP CASH FLOW STATEMENT (Unaudited) (Unaudited) (Audited)
for the half year to 30 April 2002 Half year ended Half year ended Year
30 April 30 April ended
2002 2001 31 October 2001
£'000 £'000 £'000
Net cash inflow from operating activities 3,120 2,649 8,668
Interest paid (1,208) (1,218) (2,430)
Net tax recovered/(paid) 63 (115) 24
Net cash (outflow)/inflow from purchases and sales of (1,297) 21,445 30,972
investments
Equity dividends paid (4,163) (4,332) (8,469)
Cash withdrawn from short term deposit 5,000 17,934 13,170
---------- ---------- ----------
Net cash inflow before financing 1,515 36,363 41,935
Net cash inflow/(outflow) from financing 2,059 (51,905) (48,785)
---------- ---------- ----------
Increase/(decrease) in cash 3,574 (15,542) (6,850)
====== ====== ======
Reconciliation of operating revenue to net cash inflow
from operating activities
Net revenue before interest payable and taxation 5,110 5,461 10,389
Net sales/(purchases) of trading stock 16 25 (44)
(Increase)/decrease in accrued income (2,003) (1,921) 213
Decrease in other debtors 461 129 105
Increase/(decrease) in creditors 349 (58) (32)
Management charge taken to other capital reserves (574) (600) (1,215)
UK income tax deducted at source - (30) (36)
Overseas withholding tax (186) (223) (496)
Scrip dividends included in investment income (53) (134) (216)
---------- ---------- ----------
Net cash inflow from operating activities 3,120 2,649 8,668
====== ====== ======
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash as above 3,574 (15,542) (6,850)
Cash (inflow)/outflow from financing (2,059) 4,954 1,834
Cash inflow from short term deposits (5,000) (17,934) (13,170)
---------- ---------- ----------
Change in net debt resulting from cash flows (3,485) (28,522) (18,186)
Exchange movements 735 2,268 2,292
---------- ---------- ----------
Movement in net debt during the period (2,750) (26,254) (15,894)
Net debt at beginning of the period (23,664) (7,770) (7,770)
---------- ---------- ----------
Net debt at the end of the period (26,414) (34,024) (23,664)
====== ====== ======
Represented by:
Cash at bank and short term deposits less bank overdrafts 15,121 6,137 16,427
Debt falling due within one year (15,235) (11,032) (13,791)
Debt falling due after more than one year (26,300) (29,129) (26,300)
---------- ---------- ----------
(26,414) (34,024) (23,664)
====== ====== ======
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
NOTES:
1. Return/(loss) per Ordinary Share
Revenue return per ordinary share is based on earnings attributable to
ordinary shares of £4,388,000 (half year ended
30 April 2001: £4,725,000; year ended 31 October 2001: £8,862,000), and
on the weighted average number of ordinary shares in issue during the
period of 126,169,781 (half year ended 30 April 2001: 131,366,762; year
ended 31 October 2001: 128,746,915).
Capital return per ordinary share is based on gains attributable to
ordinary shares of £38,388,000 (half year ended 30 April 2001: losses
£10,048,000; year ended 31 October 2001: losses £82,973,000) and on the
weighted average number of ordinary shares in issue during the period
of 126,169,781 (half year ended 30 April 2001: 131,366,762; year ended
31 October 2001: 128,746,915).
2. Net Asset Value per Ordinary Share
The net asset value per ordinary share is based on net assets
attributable to ordinary shares of £416,299,000 (30 April 2001:
£450,714,000; 31 October 2001: £377,763,000) and on the 126,169,781
ordinary shares in issue at 30 April 2002 (30 April 2001:126,169,781;
31 October 2001: 126,169,781).
3. Accounts for the year ended 31 October 2001
The figures and financial information for the year ended 31 October
2001 are extracted from the latest published accounts of the Company
and do not constitute the statutory accounts for that year. Those
accounts have been delivered to the Registrar of Companies and included
the report of the auditors which was unqualified and did not contain a
statement under either Section 237(2) or Section 237(3) of the
Companies Act 1985.
4. Dividend
The directors have declared a second interim dividend of 1.68p (2001:
1.64p) net per ordinary share payable on 30 August 2002 to shareholders
registered on 2 August 2002. The shares will be quoted ex-dividend on
31 July 2002.
5. Interim Report
The Interim Report will be posted to shareholders in July and will be
available from the Registered Office at 4 Broadgate, London EC2M 2DA
thereafter.
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the half year ended 30 April 2002
LARGEST INVESTMENTS
at 30 April 2002
The 50 largest investments (convertibles and all classes of equity in any one
company being treated as one investment) were as follows:
Market value Market
£'000 value
£'000
BP 16,394 Anglo American 2,965
GlaxoSmithKline 15,604 Slough Estates 2,901
Shell Transport & Trading 10,747 Tesco 2,893
Royal Bank of Scotland 8,856 ABN-Amro 2,721
HSBC 8,586 Dexia 2,712
Vodafone 7,753 CGNU 2,683
Lloyds TSB 7,693 Samsung Electronics 2,624
Barclays 7,452 ISS International 2,602
Total Fina 5,512 Allied Irish Banks 2,600
Philips Electronics 5,339 Richemont 2,490
AstraZeneca 5,144 Hammerson 2,414
HBOS 4,992 Swire Pacific 2,374
Diageo 4,919 Akzo Nobel 2,360
BT 4,128 Exxon Mobil 2,346
Nestle 3,893 Nippon Express 2,315
Abbey National 3,775 Boots 2,203
Prudential 3,650 Rio Tinto 2,168
ENI 3,583 BNP Paribas 2,151
Novartis 3,565 Cadbury Schweppes 2,134
Irish Life & Permanent 3,525 Six Continents 2,127
Aventis 3,413 Ladbroke 2,050
British American Tobacco 3,299 Alliance & Leicester 2,039
Henderson American Smaller 3,220 Wolseley 2,016
Unibail 3,150 Anglogold 1,980
Unilever 3,140 Fraport 1,963
These investments total £211,163,000 which represents 47.7% of the portfolio.
GEOGRAPHICAL DISTRIBUTION
Valuation of investments Currency exposure
30 April 31 October 30 April 31 October
2002 2001 2002 2001
% % % %
UK 58.4 57.5 56.0 55.4
Europe 17.6 18.2 21.5 21.9
North America 12.3 13.4 13.7 14.7
Japan 6.8 6.6 3.6 3.4
Hong Kong 1.6 1.6 1.7 1.7
Other Countries 3.3 2.7 3.5 2.9
100.0 100.0 100.0 100.0
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