Final Results
ALLIANCE TRUST PLC
FINAL RESULTS FOR THE YEAR TO 31 JANUARY 2007
ALLIANCE TRUST'S REAL GROWTH STRATEGY GATHERS PACE WITH FURTHER DIVERSIFICATION
* Record year-end net asset value per share of £4.22 against £4.04 last year
* Total shareholder return of 7.5%
* Group revenue up 31.8% following merger with the Second Alliance
* Diversification across asset classes increased to enhance and preserve
capital
* Dividend up for 40th consecutive year to 7.575p per share
Alliance Trust PLC, announced today that its net asset value rose 39% to £2.8bn
in the last financial year to 31 January 2007, following the successful merger
with the Second Alliance Trust that created the UK's largest generalist
investment trust company. This simpler corporate structure has enabled the
international investment and financial services group to take advantage of
market opportunities as it expands its asset management and financial services.
Total return for the year was made up of a £147.6m net capital gain on the
company's assets as well as net revenue of £67.9m. As world stock markets
appeared to enter a more uncertain phase, the company decided to preserve
capital by reducing exposure to quoted equities and built a 7% cash position.
This cash position has subsequently allowed the company to take advantage of a
fall in stock markets and other opportunities in the first quarter of the
current year.
Chief Executive Alan Harden said, "In a historic year for Alliance Trust, we
have completed a successful merger and taken meaningful steps towards building
a rounded group that is able to deliver real growth for shareholders through
different economic cycles. We have made progress towards enhancing and
preserving returns by spreading our corporate capital over several asset
classes where we have, or are developing, expertise. We have strengthened our
equities team, grown our property portfolio, launched a third-party asset
management business, acquired a new private equity subsidiary and made the
investment dealing service of our financial service subsidiary available
online."
"While the timing of our decision to protect capital by reducing exposure to
quoted equities proved to be early, falling markets since the end of the year
have given us opportunities to acquire stock. We remain cautious about the
outlook for global stock markets and believe our strategy to deliver real
growth by balancing our portfolio across well-selected opportunities in several
asset classes and our subsidiaries is the correct approach for the medium and
long term. I was particularly pleased to see a higher-than-expected 25% jump in
revenue from our financial services and pensions subsidiary, Alliance Trust
Savings, which we expect to contribute significantly to the group in coming
years."
Head of Equities Grant Lindsay said, "Conditions for world stock markets soured
slightly during the first half of the year with a sharp correction in May and
early June. We acted to preserve capital, raising cash, and our equity returns
were dampened in the second half of our financial year. Even though markets
recovered quickly we still anticipate a genuine shift in investor attitudes and
tolerance of risk in the coming year, with signs that the global economy may
slow. We continue to see good individual opportunities within global equity
markets for careful but decisive stockpicking and the performance of our UK
Small Cap and Asia-Pacific (ex-Japan) portfolios are examples of how that
approach is delivering outperformance."
The Alliance Trust announced a total dividend of 7.575p for the year ending 31
January 2007, the 40th year in a row that the company has increased its
dividend.
Contacts
Jane Holligan, Media Relations Amy Fisher/Richard Winder
Manager
Alliance Trust Lansons Communications
Tel +44 (0)1382 306064 Tel +44 (0)20 7294 3641 /
3629
Mobile 07745 783212 Email
alliancetrust@lansons.com
Email
jane.holligan@alliancetrust.co.uk
Kelly O'Donnell, Head of Investor
Relations
Alliance Trust
Tel +44 (0)1382 306036
Mobile 07843 369522
Email
kelly.o'donnell@alliancetrust.co.uk
Web www.alliancetrust.co.uk
FINANCIAL SUMMARY (Company)
31 January 31 January
2007 2006
One Year Analysis Pence per Pence per
ordinary ordinary
share unit share unit Change
Dividend for the 7.575 7.35 3.1%
year
Net asset value 421.5 404.2 4.3%
Share priceA 365.5 349.0 4.7%
Return Earnings 8.66 8.70
Capital 23.47 78.47
------------ ------------
Total 32.13 87.17
____________ ____________
31 January 31 January
2007 2006
DiscountB 13.29% 13.66%
Total expense ratioC 0.35% 0.32%
Pro Forma expense 0.38%
ratioD
____________ ____________ ____________
1 year 10 years 10 years
One and Ten Year absolute absolute compound
Analysis
Returns
Total shareholder 7.5% 109.6% 7.7%
returnE
Growth
Earnings (0.4%) 47.8% 4.0%
Dividend 3.1% 36.5% 3.2%
Net asset value 39.0% 56.7% 4.6%
A Source: Datastream.
B Discount at which share price stands relative to the
net assets of the Company.
C Total administrative expenses divided by year end
net asset value.
D Proforma expense ratio is calculated by taking the
total administrative expenditure of the Company and
the Second Alliance Trust for the year to 31 January
2007.
E The theoretical growth in value over one and ten
years, assuming that gross dividends are fully
reinvested, and ignoring re-investment charges.
The 2007 figures include the post merger contribution from the former Second
Alliance Trust.
The 2006 comparative figures have not been restated and therefore exclude any
contribution from the former Second Alliance Trust.
Comparative earnings, NAV and dividends per share have been restated to reflect
the 10 for 1 subdivision of the Company's ordinary shares.
DIVIDEND
An interim dividend of 3.75p (adjusted for the share split) was paid on 16 June
2006, a second interim dividend of 1.875p was paid on 31 January 2007 and a
third interim dividend of 1.95p will be paid on 30 April 2007. No final
dividend will be paid. Total dividends payable for the year to 31 January 2007
will therefore be 7.575p, an increase of 3.1% on last year's dividend payment.
The Company has adopted a quarterly dividend policy and with respect to each
financial year we will pay interim dividends on or around 31 July, 31 October,
31 January and 30 April. Under normal circumstances the first three quarterly
dividends of each financial year will be the same and we will indicate their
level in advance. The Directors will use the fourth quarterly dividend as an
opportunity to increase the total dividend payable for that financial year.
In the absence of any unforeseen developments, we expect to be able to
recommend quarterly interim dividends of 1.9p payable on or around 31 July
2007, 31 October 2007 and 31 January 2008, and a fourth interim dividend of at
least 1.9p payable on or around 30 April 2008.
CHIEF EXECUTIVE'S STATEMENT
Last year brought historic and structural changes in the way Alliance Trust
operates that allow us to provide shareholders with real growth over the medium
to long term even more effectively. I am pleased to report that over the past
year with the benefit of the merger with the Second Alliance Trust, your
Company increased its Net Asset Value by 39% to £2.8bn and its Group revenue
rose by 31.8%. The total shareholder return over the financial year was 7.5%
compared to the 4.2% increase in the Retail Prices Index.
Our investment objective
Our objective is reinforced by aligning it more closely with your expectations
that we should grow and preserve our Company's portfolio of investments. By
focusing on real returns relative to the UK RPI, we acknowledge that our
shareholders invest in Alliance Trust expecting to receive a superior reward
for their investment risk over the medium to long term. You should reasonably
expect your investment to return real growth over inflation across economic
cycles, which is something that I'm pleased to say we have delivered in the
past year, and will be a core target for your Company in the future.
Last year's results show we can take significant steps to mitigate risk while,
at the same time, continuing to grow our assets and seeking improved
performance at all levels of our Group. Our strategy is to reduce the Company's
exposure to a single asset class and spread risk by diversifying across several
main investment areas where we have, or are developing, expertise.
Over the year we appeared to enter a more uncertain period in world equity
markets. We took decisive action in the third quarter to preserve capital,
adopting a more defensive stance on equities. We moved early to unwind our
gearing of 2.7% of the portfolio and reduce exposure to quoted equities to 83%
building up a 7% cash position. This proved to be premature as equity markets
moved higher, by over 10%, and our quoted equity portfolio lagged as a result.
This asset allocation decision was based on concerns of the risks from economic
slowdown and higher energy costs. Another factor in the relatively weaker
second half was that we held a 10% equity exposure to Japan which was the
poorest performing of the major markets and our own performance within that
market was disappointing.
However, our resulting cash position allowed us to take advantage of the stock
market falls in the first quarter of the current year.
We ended the year with just under 3% in private equity and just under 3% in
property, both of which performed very well during the year. We believe that
this move was timely as we anticipate a genuine shift in perceptions and
tolerance of risk in the year ahead when there are signs that the global
economy may slow.
Benefits of the merger
The most notable change since the last financial year is the merger of The
Alliance Trust with the Second Alliance Trust. At our last AGM, shareholders
voted to approve the merger of the two investment companies and this took
effect in June, creating one combined company which is now the largest
generalist investment trust in the UK. The merger means that we have a single
set of shareholders and a simplified structure that is enabling us to take
advantage of market opportunities in a more responsive and efficient manner.
Recruiting quality and experience
In the past year, we have added genuine strength to our executive team. At
Group level we have appointed two very experienced and talented Directors,
Janet Pope, who joined in November and is Chief Executive Officer of Alliance
Trust Savings, and Katherine Garrett-Cox, who has been appointed Chief
Investment Officer and will take up her position in May. Janet has experience
in banking and corporate strategy with some of the world's leading financial
services companies, while Katherine has a breadth of expertise in fund
management, investment strategy and asset allocation. Their combined expertise
will inform strategic decisions at Board level and strengthen execution of that
strategy in their respective investment areas. We have also appointed a new
Company Secretary, Donald McPherson, whose broad experience in the financial
services and energy sectors will help to embed strong governance within our new
structure. Equally we have continued to bring skilled people into management
teams throughout the Group.
Recruiting the best people for these jobs in a competitive marketplace can be
expensive as we must be prepared to recruit world-class expertise in order to
build a leading company. Our remuneration packages have to be competitive and
so we are realigning them with challenging performance targets. This is
integral to our strategy and executives and managers will only be rewarded to
the extent that shareholders benefit and experience real returns in their
investment.
Our belief in creating the best possible environment for our Company to prosper
was also carried through in the announcement that we will be investing in
building a purpose-built, modern HQ in Dundee to reunite our staff, currently
operating from three sites in the city, to a single location. The Scottish
Executive has backed our expansion plans with a grant of up to £1.95m to help
us in our creation of new jobs.
Corporate structure
Headed by a single company, the Group is now organised into four principal
investment divisions namely quoted equities, private equity, property and our
financial services subsidiaries. The subsidiaries include our pensions and
investment services arm, Alliance Trust Savings, and our new asset management
business, AT Asset Management (Asia-Pacific). We have appointed heads of each
of these divisions embedding greater accountability and clearer reporting
lines. Our goal is that each area in itself creates meaningful returns for
Alliance Trust, while together these businesses complement one another, thereby
multiplying returns for our Group, while diversifying risk.
Our investment areas
In quoted equities, we performed well during the second year that we have been
organised on a geographical basis. In each area, we are focused on seeking
excellent individual opportunities that will deliver value in the medium and
long term. The performance of our UK Small Cap and the Asia-Pacific ex-Japan
portfolios are good examples of how a decisive, well-researched approach is
delivering outperformance.
Our property portfolio, including mineral rights, had a good year, starting
2006/7 with two buildings fully rented and a capital value of £28.4m. Property
still represents less than 3% of our total assets, but over the year we added
three prime properties in Edinburgh, Glasgow and Leeds at realistic prices in a
heated market. We saw capital value rise in historic oil and gas interests to
nearly £11.2m and have been vigorous when negotiating new contracts. We will
continue to grow the property portfolio but only where we see quality and
long-term value. The net asset value of our property portfolio has risen to
over £78m in the last year.
With the acquisition of Albany Ventures, we have increased our exposure to
private equity and added two strong private equity specialists to help direct
and manage the private equity division going forward. Our private equity
portfolio was valued at £80.1m at the end of the financial year, representing
2.8% of assets, in addition to which we manage £23.4m of third party assets.
Our financial services subsidiaries comprise our Asset Management business and
Alliance Trust Savings, our investment dealing, banking and pensions business.
These account for approximately 1% of the Company's capital.
We see great potential in these businesses which we intend to grow so that they
contribute significantly to the Alliance Trust Group both in terms of capital
appreciation and earning generation. In 2004 we began to modernise the Alliance
Trust Savings business and put in place the capability, processes, systems,
technology and people to allow us to begin to realise that potential.
Stronger than expected business growth has reinforced our confidence in the
potential of this business. Building on a record the previous year, in the year
to 31 January 2007 Alliance Trust Savings group customer numbers were up 23%
(last year 22%), plans 20% (last year 12%), and, most importantly, revenue 25%
(last year 19% before the Alliance Trust Pensions purchase). Revenue growth is
stated after annualising the contribution from Alliance Trust Pensions which we
acquired at the end of 2005; actual Alliance Trust Savings revenue growth this
year was 77%. Total customer assets under administration grew from £3.3bn to
almost £4.8bn up 42% (on a like for like basis) compared to last year's 33%.
The rate of business growth over the last year has been very strong and we are
reluctant to forecast that we will continue to grow at this pace, especially if
the economy and investment environment were to slow. However, early signs are
positive with the delivery of an exceptionally functionally rich online dealing
and account management service, and our innovative investment trust services.
The cost of customer acquisition and first year servicing generally exceeds
recurring servicing costs and the economies of scale from our systems
developments over the past few years are beginning to be realised.
We anticipate that our financial services subsidiaries will be operating
profitably in 2008/09.
Over the year, AT Asset Management (Asia-Pacific) began to manage two new
open-ended funds, one focused on Japan and the other on Asia-Pacific, which are
available to UK institutional and individual investors. We also added £5.6m of
third-party assets under management, generating fees from this area that add
further income to our asset management business. This venture gives us the
opportunity to generate revenue and offer alternative investment products to
our shareholders and customers for the first time. We are planning more funds
and services over the next 18 months.
Investment philosophy
We will further broaden the exposure of our corporate capital. We are not
setting a specific target for any single asset class; we are seeking to build
portfolios where each investment represents a positive choice with real,
long-term potential to generate growing returns. We are conscious of the
overall risk profiles of asset classes such as property and private equity and
the dangers of approaching these indiscriminately. In every asset class, we are
looking for outstanding opportunities that we will discover through rigorous
bottom-up analysis.
Our goals for the coming year are:
· To continue to build a portfolio of
opportunities, ensuring we cherry-pick those
investments with real long-term potential that
stand out within their asset class and outside
it. We will develop avenues of profitability by
continuing the diversification of our
investments.
· To grow and develop our financial services
businesses by realising the exciting potential
within our pensions business, growing our
investment dealing business with our innovative
online service and the transfer of customer
books from other providers, and developing our
new asset management business with new funds
and services.
· To complete the modernisation of our technology
infrastructure across all our businesses and
apply that technology to bring greater scale
and flexibility to our businesses, as well as
to refine our investment performance and
deliver better services to customers and
shareholders.
· To continue building a world-class team and
supporting our employees in realising their
full potential with customised training that
develops their skills.
· To manage costs continually with investment
gauged strictly by its potential to generate
medium and long-term real returns.
Consolidated Income Statement
For the year ended 31 January 2007
2007 2006
£000
Revenue Capital Total Revenue Capital Total
Revenue
Deposit interest 11,009 - 11,009 6,930 - 6,930
Dividend income 58,750 - 58,750 49,878 - 49,878
Mineral rights income 1,575 - 1,575 850 - 850
Rental income 1,935 - 1,935 81 - 81
Gains and losses on
investment
(Decrease)/Increase - (52,382) (52,382) - 236,790 236,790
in fair-value
designated investment
held
Increase in - 201,655 201,655 - 161,367 161,367
fair-value
investments disposed
of
Other operating 7,763 - 7,763 3,739 - 3,739
income
Total revenue 81,032 149,273 230,305 61,478 398,157 459,635
Administrative (25,180) (462) (25,642) (13,947) (283) (14,230)
expenses
Merger expenses - (2,461) (2,461) - - -
Finance costs (3,199) (1,224) (4,423) (2,071) (230) (2,301)
Foreign exchange - (1,651) (1,651) - 1,165 1,165
(losses)/gains
-------- -------- -------- -------- -------- --------
Profit before tax 52,653 143,475 196,128 45,460 398,809 444,269
Tax (4,329) 367 (3,962) (4,146) 106 (4,040)
-------- -------- -------- -------- -------- --------
Profit for the period 48,324 143,842 192,166 41,314 398,915 440,229
======== ======== ======== ======== ======== ========
Attributable to:
- Minority interest (664) 202 (462) (49) 297 248
- Equity holders of 48,988 143,640 192,628 41,363 398,618 439,981
the parent
-------- -------- -------- -------- -------- --------
48,324 143,842 192,166 41,314 398,915 440,229
======== ======== ======== ======== ======== ========
Earnings per share 8.08p 23.70p 31.78p 8.21p 79.09p 87.30p
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
2007 2006
£000 Revenue Capital Total Revenue Capital Total
Income and expense
recognised directly
in equity:
Own shares purchased - (321) (321) - (112) (112)
for Employee Benefit
Trust
Defined benefit plan 304 - 304 25 - 25
actuarial gains
-------- -------- -------- -------- -------- --------
304 (321) (17) 25 (112) (87)
Profit for the 48,324 143,842 192,166 41,314 398,915 440,229
period
======== ======== ======== ======== ======== ========
Total recognised 48,628 143,521 192,149 41,339 398,803 440,142
income and expense
for the period
Attributable to:
- Minority interest (664) 202 (462) (49) 297 248
- Equity holders of 49,292 143,319 192,611 41,388 398,506 439,894
the parent
======== ======== ======== ======== ======== ========
48,628 143,521 192,149 41,339 398,803 440,142
COMPANY INCOME STATEMENT
For the year ended 31 January 2007
2007 2006
£000 Revenue Capital Total Revenue Capital Total
Revenue
Deposit interest 4,847 - 4,847 2,170 - 2,170
Dividend income 59,549 - 59,549 51,428 - 51,428
Mineral rights income 1,575 - 1,575 850 - 850
Rental income 1,935 - 1,935 81 - 81
Gains and losses on
investment
(Decrease)/Increase - (54,033) (54,033) - 233,460 233,460
in fair value
designated investment
held
Increase in fair - 201,680 201,680 - 161,230 161,230
value designated
investments disposed
of
-------- -------- -------- -------- -------- --------
Total revenue 67,906 147,647 215,553 54,529 394,690 449,219
Administrative (9,427) (439) (9,866) (6,279) (254) (6,533)
expenses
Merger expenses - (2,461) (2,461) - - -
Finance costs (622) (1,224) (1,846) (162) (230) (392)
Foreign exchange - (1,651) (1,651) - 1,165 1,165
(losses)/gains
-------- -------- -------- -------- -------- --------
Profit before tax 57,857 141,872 199,729 48,088 395,371 433,459
Tax (5,405) 367 (5,038) (4,270) 98 (4,172)
-------- -------- -------- -------- -------- --------
Profit for the period 52,452 142,239 194,691 43,818 395,469 439,287
======== ======== ======== ======== ======== ========
Attributable to:
Equity shareholders 52,452 142,239 194,691 43,818 395,469 439,287
======== ======== ======== ======== ======== ========
Earnings per share 8.66p 23.47p 32.13p 8.70p 78.47p 87.17p
COMPANY STATEMENT OF RECOGNISED INCOME AND EXPENSE
2007 2006
£000 Revenue Capital Total Revenue Capital Total
Income and expense
recognised directly
in equity:
Own shares purchased - (321) (321) - (112) (112)
for Employee Benefit
Trust
Defined benefit plan 304 - 304 25 - 25
actuarial gains
-------- -------- -------- -------- -------- --------
304 (321) (17) 25 (112) (87)
Profit for the 54,452 142,239 194,691 43,818 395,469 439,287
period
======== ======== ======== ======== ======== ========
Total recognised 52,756 141,918 194,674 43,843 395,357 439,200
income and expense
for the period
Attributable to:
- Equity 52,756 141,918 194,674 43,843 395,357 439,200
shareholders
BALANCE SHEETS
As at 31 January GROUP COMPANY
2007
2007 2006 2007 2006
£000 £ £ £ £
Non-current
assets
Held at fair 2,538,385 2,004,743 2,550,524 2,008,260
value investments
Investment 67,145 19,500 67,145 19,500
property
Property, plant
and equipment:
Office premises 900 450 900 450
Motor vehicles 32 16 14 7
Intangible assets 14,808 10,152 1,514 174
Retirement 181 - 181 -
benefit surplus
Deferred tax 1,390 2,627 14 91
assets
---------- ---------- ---------- ----------
2,622,841 2,037,488 2,620,292 2,028,482
Current assets
Other receivables 32,826 12,152 15,443 8,368
Cash and cash 346,571 160,176 208,647 60,994
equivalents
---------- ---------- ---------- ----------
379,397 172,328 224,090 69,362
Total assets 3,002,238 2,209,816 2,844,382 2,097,844
Current
liabilities
Other payables (156,667) (102,731) (12,538) (5,531)
Bank overdrafts (5,188) (54,837) - (54,837)
and loans
---------- ---------- ---------- ----------
(161,855) (157,568) (12,538) (60,368)
Total assets less 2,840,383 2,052,248 2,831,844 2,037,476
current
liabilities
Non-current
liabilities
Deferred tax (228) - (228) -
liabilities
Retirement - (254) - (254)
benefit
obligations
---------- ---------- ---------- ----------
(228) (254) (228) (254)
Net assets 2,840,155 2,051,994 2,831,616 2,037,222
Equity
Share capital 16,798 12,600 16,798 12,600
Capital reserves 2,096,078 1,952,056 2,106,487 1,964,088
Merger reserve 645,335 - 645,335 -
Capital 2,200 2,200 2,200 2,200
redemption
reserve
Revenue reserves 73,454 71,060 60,796 58,334
Equity 2,833,865 2,037,916 2,831,616 2,037,222
attributable to
equity holders of
the parent
Minority interest 6,290 14,078 - -
Total equity 2,840,155 2,051,994 2,831,616 2,037,222
Net Asset Value £4.22 £4.04 £4.22 £4.04
per ordinary
share
Cash Flow Statement
For the year ended 31 GROUP COMPANY
January 2007
2007 2006 2007 2006
£000 £ £ £ £
Cash Flows from
operating activities
Profit before tax 196,128 444,269 199,729 443,459
Adjustments for:
Gains on investments (149,273) (398,157) (147,647) (394,690)
Foreign exchange losses 1,651 (1,165) 1,651 (1,165)
/(gains)
Scrip dividends (617) (897) (617) (897)
Bond premium 222 327 - 1
amortisation
Depreciation 19 8 9 3
Amortisation of 177 66 28 23
intangibles
Interest payable pay 4,423 2,301 1,846 392
Fixed assets written - 41 - -
off
--------- --------- --------- ---------
Operating cash flows 52,730 46,793 54,999 47,126
before movements in
working capital
Increase in amount due 36,661 11,063 - -
to depositors
(Increase) in (13,643) (2,000) (2,192) (128)
receivables
Increase in payables 11,098 5,935 480 902
--------- --------- --------- ---------
Net cash from operating 86,846 61,791 53,287 47,900
activities before
income taxes
Income taxes paid (4,760) (5,181) (4,178) (4,974)
--------- --------- --------- ---------
Net cash from operating 82,086 56,610 49,109 42,926
activities
========= ========= ========= =========
Cash flows from
investing activities
Proceeds on disposal of 871,207 650,618 865,558 639,681
fair value through
profit and loss
investments
Purchases of fair value (645,326) (673,328) (643,751) (656,131)
through profit and loss
investments
Cash and cash 23,596 - 23,596 -
equivalent acquired
through merger
Purchase of investment (36,684) (20,307) (36,684) (20,307)
properties
Purchase of property, (35) (24) (16) (10)
plant and equipment
Purchase of intangible (4,536) (1,981) (1,368) (197)
assets
Purchase of business (224) (10,623) - -
and subsidiary
undertaking
--------- --------- --------- ---------
Net cash (outflow)/ 207,998 (55,645) 207,335 (36,964)
inflow from investing
activities
========= ========= ========= =========
Cash flows from
financing activities
Dividends paid - Equity (50,136) (36,664) (50,136) (36,664)
Dividends paid - - (49) - (49)
Preference shares
Purchase of own shares (321) (112) (321) (112)
Repayments of (54,837) - (54,837) -
borrowings
New bank loans raised - 54,837 - 54,837
New issue of shares - 5,000 - -
Minority interest 2,616 - - -
investment in PATIF*
Dividends (paid to) (125) (1,000) - -
minority interest
Repayment of Debenture - (1,648) - (1,648)
Stock
Repayment of Preference - (2,200) - (2,200)
Stock
Interest payable (4,423) (1,956) (1,846) (47)
--------- --------- --------- ---------
Net cash (outflow)/ (107,226) 16,208 (107,140) 14,117
inflow from financing
activities
Net increase in cash 182,858 17,173 149,304 20,079
and cash equivalents
Cash and cash 160,176 141,838 60,994 39,750
equivalents at
beginning of year
Effect of foreign (1,651) 1,165 (1,651) 1,165
exchange rate changes
--------- --------- --------- ---------
Cash and cash 341,383 160,176 208,647 60,994
equivalents at end of
year
========= ========= ========= =========
* Premier Alliance Trust Investment Funds Limited.
The revenue return statement is the profit and loss account of the Company.
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 January 2007 or 2006 but is derived
from those accounts.
Statutory accounts for 2006 have been delivered to the Registrar of Companies
and those for 2007 will be delivered following the Company's Annual General
Meeting. The auditor has reported on those accounts. The report was unqualified
and did not contain statements under Section 237(2) or (3) of the Companies Act
1985.
Notes to the Financial Statements
1 Expenses comprise £9,866,000 (£6,533,000) incurred by the Company, and £
15,776,000 (£7,697,000) incurred by subsidiary companies. Taking guidance
from the Statement of Recommended Practice "Financial Statements of
Investment Trust Companies" the cost of the Senior Management Equity
Incentive Plan ("SMEIP") deemed to be related to the capital performance
of the Company has been treated as a capital expense of £462,000.
2 The earnings per share are calculated using the weighted average number of
ordinary shares, which is arrived at by taking account of 162,939 (46,820)
ordinary shares acquired by the Company and held by the Trustee of the
Employee Benefit Trust for the Company. The net asset value per share
exclude, for the purposes of these disclosures, the 162,939 ordinary
shares acquired by the Company and held by the Employee Benefit Trust
(`EBT') for the Company.
3 All expenses are accounted for on an accruals basis. In respect of the
analysis between revenue and capital items presented within the income
statement, all expenses have been presented as revenue items except as
follows:
· Expenses which are incidental to the acquisition of an investment
are included within the cost of that investment.
· Expenses which are incidental to the disposal of an investment are
deducted from the disposal proceeds of the investment.
· The Directors have determined to allocate annual bonus and Senior
Management Equity Incentive Plan costs which relate to the
achievement of investment manager performance objectives and total
stockholder return performance objectives against capital profits
and those that relate to the achievement of job performance
objectives against revenue profits.
· The Directors have determined to allocate two thirds of the cost of
bank indebtedness incurred to finance investment against capital
profits with the balance being allocated against revenue profits.
· Merger costs have been allocated to capital.
Number of Issued Shares
Ordinary Shares of 2.5p 671,909,760
POSTING ARRANGEMENTS
The Report and Accounts will be posted to shareholders on Wednesday, 25 April
2007 and will be available on the Company's website www.alliancetrust.co.uk on
Wednesday, 25 April 2007. It will also be made available to the public at the
Company's registered office, Meadow House, 64 Reform Street, Dundee DD1 1TJ and
at the offices of the Company's Registrar, Computershare Investor Services PLC,
Lochside House, 7 Lochside Avenue, Edinburgh Park, Edinburgh EH12 9DJ on and
after 25th April 2007.
ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on Thursday, 24th May 2007 at
11.00 am at the Hilton Dundee, Earl Grey Place, Dundee DD1 4DE.
In addition to the full annual report, up-to-date performance data, details of
new initiatives and other information about the Company can be found on the
Company's website.
Friday, 22nd November 2024
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