Interim Results
INTERIM REPORT OF THE ALLIANCE TRUST PLC FOR THE HALF YEAR ENDED 31 JULY 2005
(UNAUDITED)
This interim report will be made available on the website
www.alliancetrusts.com upon publication of this announcement. Copies will be
posted to shareholders on Monday, 29 August 2005 and 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 paying
agents, Computershare Investor Services PLC, Lochside House, 7 Lochside Avenue,
Edinburgh Park, Edinburgh EH12 9DJ.
This interim report was approved on 22 August 2005. It brings shareholders up
to date about the performance of the Alliance Trust over the six months to 31
July 2005, the environment in which we have been operating over this period,
and how we see the outlook over the next six months, before we report to them
again with the final results for the year to 31 January 2006.
The figures we report are unaudited. The last audited figures are in the 2005
annual report which was sent to shareholders in March 2005 and is available for
reference at www.alliancetrusts.com
The Alliance Trust PLC is now required to present its consolidated financial
statements applying International Financial Reporting Standards ('IFRS').
Previously, financial statements were produced under UK Generally Accepted
Accounting Practice ('GAAP'), the date of transition to IFRS being 1 February
2004. This means that the Statement of Total Return has been replaced by a
Consolidated Income Statement (which does however still distinguish income
between revenue and capital), that the basis of the valuation of assets has
altered slightly and that there are certain differences in the forms of
disclosure. The most significant change is that the reported net asset value
per share has increased mainly because dividends declared after the balance
sheet date are no longer treated as a liability. These changes increased net
assets per share as at 31 January 2005 from £32.16 to £32.44.
These preliminary IFRS financial statements may require adjustment before their
inclusion in the final IFRS financial statements for the year ended 31 January
2006 because of subsequent revisions or changes to IFRS, or guidance and
consensus on the application or interpretation of IFRS.
Historic financial information in this report is restated to conform to
relevant IFRS.
INCOME AND DIVIDEND
2005 2004 Change
Interim dividend 36.5p 35.5p 2.8%
Amount payable 30 September 2005 per ordinary share
Ex dividend 14 September 2005
£000 6 months to 6 months to year to
July 2005 July 2004* January 2005*
Company income
revenue 30,630 27,591 47,655
capital 162,578 2,927 146,526
---------- ---------- ----------
193,208 30,518 194,181
========== ========== ==========
Subsidiaries' income
revenue 4,283 3,256 7,297
capital (152) (139) 92
--------- --------- ---------
4,131 3,117 7,389
========= ========= =========
Total income 197,339 33,635 201,570
========= ========= =========
Company expenses (2,872) (2,539) (5,358)
Subsidiaries' expenses (3,061) (2,107) (4,311)
--------- --------- ---------
(5,933) (4,646) (9,669)
--------- --------- ---------
Company finance costs (37) (87) (174)
Subsidiaries' finance costs (948) (634) (1,527)
--------- --------- ---------
(985) (721) (1,701)
========= ========= ========
Consolidated profit before taxation 190,421 28,268 190,200
--------- --------- ---------
* Restated
Over the six months to 31 July 2005 our consolidated profit before tax was £
190.4m(£28.3m) of which £28.2m(£25.5m) comprised net revenue and £162.2m(£2.8m)
net capital appreciation on the Group's assets. The table above analyses the
contribution to income between the Company and its subsidiaries. Increased
dividend earnings from companies in our portfolio and a higher level of
interest earned due to increased liquidity have contributed to this increase.
An interim dividend of 36.5p per ordinary share will be paid on 30 September
2005. We expect to be able to recommend a final dividend of at least 36.5p
payable in May 2006.
Total Company expenses were £2.9m compared to £2.5m last year. Expenses of
subsidiary companies rose to £3.1m. Subsidiaries' finance costs principally
relate to interest paid to ATS customers. We continue to modernise the Group's
infrastructure by the introduction of new technology systems and to invest in
staff. We consider this investment essential if the Group is to be well
positioned to deliver performance in the Company and its subsidiaries going
forward.
CAPITAL
31 July 2005 31 January 2005 Change
Net Asset Value 3579.0p 3244.0p* 10.3%
Share price 2985.0p 2741.0p 8.9%
FTSE All-Share Index 2644.8 2441.2 8.3%
FTSE World Index ex UK
(sterling adjusted) 277.6 246.6 12.6%
* Restated
In the six months to 31 July 2005, the Company's net asset value per share rose
by 10.3%, the FTSE All-Share Index rose by 8.3% and the sterling adjusted FTSE
World Index, excluding the UK, rose by 12.6%. During the period approximately
half of the Company's assets were invested in the UK, with the balance invested
overseas.
Over the six months the share price rose by 8.9% to £29.85.
FINANCIAL SERVICES BUSINESS
Alliance Trust Savings 1
At 31 July 2005 Change 2
Total customer assets 3 £1,609m 11.3%
Alliance Trust holding 4 17.83% 1.3%
1 Alliance Trust owns 75% of ATS
2 Change is since 1 February 2005
3 Aggregate value of assets administered by ATS
4 % of ordinary shares of the Alliance Trust held in ATS plans
Customer assets administered in ATS were £1.6bn at 31 July 2005. Over the six
months there was a 13% rise in assets in the ATS Select Pension and net inflows
to ATS rose by 9% overall. ATS is well positioned to take advantage of the
opportunities that will open up when pensions simplification takes place in
April 2006 and is investing in its own business to take advantage of this
opportunity as well as in the broader market for its products and services.
INVESTMENT REPORT
Economic and Market Background
The six months under review have been characterised by growing uncertainty
surrounding the oil price, currently at a record high level. Few manufacturing
companies have been able to pass on cost increases fully, and the resulting
squeeze on profit margins, especially in regions where manufacturing
predominates, has lowered companies' confidence. That could delay new
investment in both capital and labour which is critical for balanced growth.
Despite this background, US economic activity has held up remarkably well so
far. For consumers, a higher oil price acts as a tax on discretionary spending
although, in the US at least, the impact on confidence has been mitigated by
the underlying strength of its housing market.
Confidence in the ability of policy makers to continue to guide the global
economy through this testing time has also underpinned stock market
performance. All of the major markets ended the six months higher, most notably
across Europe where, despite its current relatively poor economic climate,
prospects for corporate restructuring and takeovers resulted in a sterling
adjusted appreciation of 11.9% in the regional index. Although the gain on the
North American market was much smaller, the appreciation of the dollar boosted
that to 13.5% on a sterling adjusted basis.
Investment Activity
In January, at the start of our financial year we held more in the equity
market than for some time. However, we then reflected our caution about the
economic outlook by raising more cash through net sales of investments in the
UK, North America and Asia, although we increased our exposure to European
equities. We made net sales in sectors such as utilities and services but added
to resources stocks. We reduced our fixed income exposure with net sales of £8m
and, as yet, we have not made a direct investment in property.
Outlook
The outlook for the global economy is still far from clear given the
uncertainties created by higher energy costs, despite the impact on quality
companies appearing to be limited so far. If oil and gas prices do not
undermine economic activity more broadly, we would expect US short term
interest rates to be raised further. Higher longer term rates could adversely
affect the housing market which is critical for consumer confidence and
spending. House price growth has mostly slowed in the UK where signs of rising
unemployment and lower levels of activity have already encouraged policy makers
to cut interest rates.
Activity in China, which is now a major influence on the world economy, remains
robust despite earlier fears, but profit margins are being squeezed by higher
input costs there and in much of the rest of Asia. China's strong export growth
has raised many calls in the West for protectionist measures. The deep
anxieties which that engenders may persist until the Chinese authorities edge
further towards a truly flexible exchange rate, but allowing further
adjustments to occur through market forces should be beneficial for the global
economy.
In Europe, confidence is improving tentatively despite the negative impact of
high energy costs, and we expect corporate re-structuring to continue to
support market values, while hopes for sustainable improvement in Japan are
crossing new hurdles. We are gradually extending our investment in both areas.
Central banks around the world are clearly committed to maintaining confidence
and economic growth, while simultaneously attempting to keep inflation in
check. Although we expect the economic environment to be challenging over the
next few months, particularly if the oil price rises further, the policy makers
are regaining the initiative in being able to adjust to circumstances. We aim
to use opportunities as they arise to invest the remainder of our cash.
Distribution by geography
Figures as at 31 July 2005
£m
UK 986.8
Europe 202.2
North America 338.1
Japan 83.5
Asia Pacific ex Japan 188.1
Rest of World 5.1
Shareholders' Funds 1803.8
Distribution by sector
Figures as at 31 July 2005
£m
Resources 282.7
Basic Industries 81.0
General Industrials 106.6
Consumer Goods and Products 262.9
Services 340.0
Financials 469.4
Utilities 76.0
Information Technology 72.6
Fixed Income and Other Net Assets 112.6
Shareholders' Funds 1803.8
INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Income Statement (previous periods restated)
Investment 6 months to 31 July 6 months to 31 July 2004 Year to 31 January
Income 2005 2005
£000 Revenue Capital Total Revenue Capital Total Revenue Capital Total
Investment 29,890 - 29,890 26,649 - 26,649 45,873 - 45,873
income
Gains and
losses on
investments
Increase
(decrease) in
fair-value of
designated
investments
held - 78,871 78,871 - (34,646) (34,646) - 74,391 74,391
disposed of - 82,000 82,000 - 37,715 37,715 - 71,849 71,849
Foreign - 1,555 1,555 - (281) (281) - 378 378
exchange gains
/(losses)
Other 5,023 - 5,023 4,198 - 4,198 9,079 - 9,079
operating
income
------- ------- ------- ------- ------- ------- ------- ------- -------
Total revenue 34,913 162,426 197,339 30,847 2,788 33,635 54,952 146,618 201,570
Expenses (5,672) (261) (5,933) (4,646) - (4,646) (9,669) - (9,669)
------- ------- ------- ------- ------- ------- ------- ------- -------
29,241 162,165 191,406 26,201 2,788 28,989 45,283 146,618 191,901
Finance costs (985) - (985) (721) - (721) (1,701) - (1,701)
------- ------- ------- ------- ------- ------- ------- ------- -------
Profit before 28,256 162,165 190,421 25,480 2,788 28,268 43,582 146,618 190,200
taxation
Taxation (3,210) 78 (3,132) (3,152) - (3,152) (4,759) (601) (5,360)
------- ------- ------- ------- ------- ------- ------- ------- -------
Profit for the 25,046 162,243 187,289 22,328 2,788 25,116 38,823 146,017 184,840
period
======= ======= ======= ======= ======= ======= ======= ======= =======
Attributable
to:
Minority 67 (38) 29 91 (35) 56 259 23 282
interest
Equity 24,979 162,281 187,260 22,237 2,823 25,060 38,564 145,994 184,558
shareholders
of the parent
------- ------- ------- ------- ------- ------- ------- ------- -------
25,046 162,243 187,289 22,328 2,788 25,116 38,823 146,017 184,840
======= ======= ======= ======= ======= ======= ======= ======= =======
Earnings per 49.56p 322.01p 371.57p 44.12p 5.60p 49.72p 76.52p 289.67p 366.19p
share (see
note 4)
6 months to 31 July 6 months to 31 July Year to 31 January
2005 2004 2005
Per share Total £000 Per share Total £000 Per share Total £
000
Ordinary 36.50p 18,394 35.50p 17,892 71.75p 36,162
dividends payable
for period
CONSOLIDATED BALANCE SHEET
Group
£000 31 July 2005 31 July 2004 31 January 2005
Non-current assets
investments 1,716,756 1,399,662 1,587,311
fixed assets 741 450 450
current assets 204,518 191,317 150,039
Current liabilities (108,390) (86,341) (90,881)
Non-current liabilities - (2,200) (2,200)
---------- ---------- ----------
Net Assets 1,813,625 1,502,888 1,644,719
========== ========== ==========
Equity attributable to equity 1,803,766 1,493,283 1,634,889
shareholders of parent
Minority interest 9,859 9,605 9,830
---------- ---------- ----------
Total equity 1,813,625 1,502,888 1,644,719
========== ========== ==========
Net asset value per ordinary £35.79 £29.63 £32.44
share (see note 4)
CONSOLIDATED CASH FLOW STATEMENT
£000 6 months to 6 months to Year to
31 July 2005 31 July 2004 31 January
2005
Net cash from operating 34,567 32,057 48,571
activities
Investing activities 25,149 65,048 25,845
Financing activities (18,270) (17,892) (35,784)
- equity dividends paid
- repayment of preference and (3,848) - -
debenture stock
Purchase of fixed assets (291) - -
Own shares acquired (132) - -
---------- ---------- ----------
Net increase/(decrease) in cash 37,175 79,213 38,632
and cash equivalents
Cash and cash equivalents at 141,838 102,828 102,828
beginning of period
Effect of foreign exchange rates 1,555 (281) 378
---------- ---------- ----------
Cash and cash equivalents at end 180,568 181,760 141,838
of period
========== ========== ==========
STATEMENT OF CHANGES IN EQUITY
£000 6 months to 6 months to Year to
31 July 2005 31 July 2004 31 January
2005
Opening equity shareholders' 1,634,889 1,486,115 1,486,115
funds
Total income 187,260 25,060 184,558
Dividends paid (18,270) (17,892) (35,784)
Movement in own shares (113) - -
---------- ---------- ----------
Closing equity shareholders' 1,803,766 1,493,283 1,634,889
funds
========== ========== ==========
NOTES TO THE FINANCIAL STATEMENTS
1 Information for the year to 31 January 2005 is extracted from the
financial statements for that year which were prepared under UK GAAP, have
been filed with the registrar of companies and which contain an
unqualified report from the auditor. Historic financial information has
been restated to conform to IFRS.
2 The results are unaudited. They should not be taken as a guide to the full
year and do not constitute the statutory accounts.
3 Expenses comprise £2,872,000 (£2,539,000) incurred by the Company, and £
3,061,000 (£2,107,000) incurred by subsidiary companies. Taking guidance
from the Statement of Recommended Practice 'Financial Statements of
Investment Trust Companies' the costs of repaying the Company's debenture
stock and preference stocks and those costs of the Senior Management
Equity Incentive Plan ('SMEIP')deemed to be related to the capital
performance of the Company have been treated as a capital expense of £
261,000 in aggregate.
4 The earnings per share and the net asset value per share exclude, for the
purposes of these disclosures, the 4,682 shares held by the trustee of the
SMEIP.
5 At the AGM of the Company on 29 April 2005 approval was given to convert
the ordinary stock into ordinary shares. In this report, references are to
ordinary shares.
6 Expenses are charged through the revenue column except where they directly
relate to the acquisition or disposal of an investment, in which case they
are added to the cost of the investment or deducted from the proceeds and
reflected in the capital column.
7 The restated consolidated income statement for the year to 31 January
2005, which takes IFRS into account, is set out below.
UK GAAP IFRS
Effect
£000 Notes Revenue Capital Total of IFRS Revenue Capital Total
Investment income 45,873 - 45,873 - 45,873 - 45,873
Other income 9,079 - 9,079 - 9,079 - 9,079
------- ------- ------- ------- ------- ------- -------
Total income 54,952 - 54,952 - 54,952 - 54,952
Total expenses (9,669) - (9,669) - (9,669) - (9,669)
Realised gains on - 71,849 71,849 - - 71,849 71,849
investments
Increase 10 - 74,666 74,666 (275) - 74,391 74,391
(decrease) in
unrealised
appreciation
Foreign exchange - 378 378 - - 378 378
gains
------- ------- ------- ------- ------- ------- -------
Net return before 45,283 146,893 192,176 (275) 45,283 146,618 191,901
interest payable
and taxation
Interest payable 10 (1,604) - (1,604) (97) (1,701) - (1,701)
------- ------- ------- ------- ------- ------- -------
Return before 43,679 146,893 190,572 (372) 43,582 146,618 190,200
taxation
Taxation (4,759) (601) (5,360) - (4,759) (601) (5,360)
------- ------- ------- ------- ------- ------- -------
Return after 38,920 146,292 185,212 (372) 38,823 146,017 184,840
taxation
Minority interest (259) (23) (282) - (259) (23) (282)
- equity
Dividends on 10 (97) - (97) 97 - - -
preference stock
- non-equity
------- ------- ------- ------- ------- ------- -------
Return 38,564 146,269 184,833 (275) 38,564 145,994 184,558
attributable to
equity
shareholders
======= ======= ======= ======= ======= ======= =======
8 The restated consolidated income statement for the six months to 31 July
2004, which takes IFRS into account, and its reconciliation with UK GAAP
is set out below.
UK GAAP IFRS
Effect
£000 Notes Revenue Capital Total of IFRS Revenue Capital Total
Investment 26,649 - 26,649 - 26,649 - 26,649
income
Other income 4,198 - 4,198 - 4,198 - 4,198
------- ------- ------- ------- ------- ------- -------
Total income 30,847 - 30,847 - 30,847 - 30,847
Total (4,646) - (4,646) - (4,646) - (4,646)
expenses
Realised - 37,715 37,715 - - 37,715 37,715
gains on
investments
Increase in 10 - (34,871) (34,871) 225 - (34,646) (34,646)
unrealised
appreciation
Foreign - (281) (281) - - (281) (281)
exchange
losses
------- ------- ------- ------- ------- ------- -------
Net return 26,201 2,563 28,764 225 26,201 2,788 28,989
before
interest
payable and
taxation
Interest 10 (672) - (672) (49) (721) - (721)
payable
------- ------- ------- ------- ------- ------- -------
Return before 25,529 2,563 28,092 176 25,480 2,788 28,268
taxation
Taxation (3,152) - (3,152) - (3,152) - (3,152)
------- ------- ------- ------- ------- ------- -------
Return after 22,377 2,563 24,940 176 22,328 2,788 25,116
taxation
Minority (91) 35 (56) - (91) 35 (56)
interest -
equity
Dividends on 10 (49) - (49) 49 - - -
preference
stock -
non-equity
------- ------- ------- ------- ------- ------- -------
Return 22,237 2,598 24,835 225 22,237 2,823 25,060
attributable
to equity
shareholders
======= ======= ======= ======= ======= ======= =======
9 The make up of restated equity shareholders' funds, which takes IFRS into
account, and the reconciliation with UK GAAP are set out below.
£000 Notes UK GAAP Effect of IFRS
IFRS
As at 1 February 2004 (opening
balance sheet)
Investments 10 1,466,143 (3,950) 1,462,193
Fixed assets - office premises 10 700 (250) 450
Net current assets 10 18,976 17,892 36,868
--------- --------- ---------
Total assets less current 1,485,819 13,692 1,499,511
liabilities
Long term liabilities (13,396) - (13,396)
--------- --------- ---------
Equity shareholders' funds 10 1,472,423 13,692 1,486,115
========= ========= =========
As at 31 January 2005
Investments 10 1,591,536 (4,225) 1,587,311
Fixed assets - office premises 10 700 (250) 450
Net current assets 10 40,888 18,270 59,158
--------- --------- ---------
Total assets less current 1,633,124 13,795 1,646,919
liabilities
Long term liabilities (12,030) - (12,030)
--------- --------- ---------
Equity shareholders' funds 10 1,621,094 13,795 1,634,889
========= ========= =========
As at 31 July 2004
Investments 10 1,403,387 (3,725) 1,399,662
Fixed assets - office premises 10 700 (250) 450
Net current assets 10 84,388 22,237 106,625
--------- --------- ---------
Total assets less current 1,488,475 18,262 1,506,737
liabilities
Long term liabilities (13,454) - (13,454)
--------- --------- ---------
Equity shareholders' funds 10 1,475,021 18,262 1,493,283
========= ========= =========
10 The detailed adjustments made to conform to IFRS are summarised below,
taking into account the initial transition to IFRS:
IAS29 (Revised) 'Financial Instruments: Recognition and Measurement': IFRS
introduces standard methodology for valuing investments. The Company has
designated its securities portfolio to be fair value through profit or
loss resulting in a move from a mid price to a bid price basis and a
change in the value of the investment portfolio.
IAS 32 (Revised) 'Financial Instruments: Disclosure and Presentation':
Dividends payable on preference stock are to be presented in the income
statement along with interest on other liabilities.
IAS 10 (Revised) 'Events After the Balance Sheet Date': Ordinary dividends
declared or proposed after the balance sheet date are no longer recognised
as a liability in the financial statements. The liability for dividends
declared has been removed from the Balance Sheet, increasing the Company's
stated net asset value. The restated net assets at 31 July 2004 increased
by £22,237,000 being the sum for the six months then ended of the interim
dividend of £17,892,000 and the balance of revenue to attributable
ordinary shareholders of £4,345,000.
IAS 16 (Revised) 'Property, Plant and Equipment': office premises were
previously stated on a value in use basis. The valuation now requires to
be stated as the open market value.
Adjustments to consolidated Notes IAS 39: IAS 32: Total
income statements revaluation reclass of
of preference
investments stock
£000
for the year ended 31
January 2005
Decrease in unrealised 7 (275) - (275)
appreciation
Interest payable 7 - (97) (97)
Dividends on preference 7 - 97 97
stock
--------- --------- ---------
Transfer to reserves (275) - (275)
========= ========= =========
for the period ended 31
July 2004
Increase in unrealised 8 225 - 225
appreciation
Interest payable 8 - (49) (49)
Dividends on preference 8 - 49 49
stock
--------- --------- ---------
Transfer to reserves 225 - 225
========= ========= =========
Adjustments to consolidated Notes IAS 40: IAS 39: IAS 10: Total
balance sheets revaluation revaluation dividends
of office of
premises investments
£000
as at 1 February 2004
(opening balance sheet)
Investments 9 - (3,950) - (3,950)
Fixed assets - Office 9 (250) - - (250)
premises
Net current assets 9 - - 17,892 17,892
--------- --------- --------- ---------
(250) (3,950) 17,892 13,692
========= ========= ========= =========
as at 31 January 2005
Investments 9 - (4,225) - (4,225)
Fixed assets - Office 9 (250) - - (250)
premises
Net current assets 9 - - 18,270 18,270
--------- --------- -------- ---------
(250) (4,225) 18,270 13,795
========= ========= ========= =========
as at 31 July 2004
Investments 9 - (3,725) - (3,725)
Fixed assets - Office 9 (250) - - (250)
premises
Net Current assets 9 - - 22,237 22,237
--------- --------- --------- ---------
(250) (3,725) 22,237 18,262
========= ========= ========= =========
Restatement of 31 January 2005 1 February 2004 31 July 2004
shareholders' funds
£000
Equity and preference 1,623,294 1,474,623 1,477,221
shareholders' funds under
UK GAAP
Standards applicable to all
periods:
Net current asset 18,270 17,892 22,237
adjustment
Revaluation of office (250) (250) (250)
premises
Revaluation of investments (4,225) (3,950) (3,725)
Preference stock (2,200) (2,200) (2,200)
--------- --------- ---------
Equity shareholders' funds 1,634,889 1,486,115 1,493,283
under IFRS
========= ========= =========
The interim dividend on the Company's ordinary shares is payable on Friday, 30
September 2005 to holders on the register on 16 September 2005 and the ex
dividend date is 14 September 2005.
Issued Capital: 50,400,000 ordinary shares fo 25p each
The press release summarising these interim results follows:
PRESS RELEASE
Alliance Trusts
Press release
22 August 2005
For immediate release
Increased income from company dividends pushes Alliance Trust's half-year
earnings higher.
* Total consolidated profits before tax were £190.4m, up from £28.3m for the
same period last year
* Consolidated revenue was £35m, up 13.2%
* Net asset value rose £169m or 10.3% to £1.8bn
* Interim dividend up 1p to 36.5p
The FTSE-250 investment company, The Alliance Trust PLC, announced today
(Monday) that its consolidated profits before tax in the six months to the end
of July increased to £190.4m. This figure compares to £28.3m in the equivalent
period last year.
The consolidated total pre-tax income was made up of a £162.2m net capital gain
on the Company's assets, compared to a £2.8m increase in the equivalent six
months of the previous financial year, as well as net pre-tax profit of £28.3m
from earnings on the Company's assets, up 10.9% on the corresponding period.
Alliance Trust Chief Executive Alan Harden said, 'We are encouraged by these
first-half year results. We have seen a sharp rise in the value of assets we
invest in, as well as strong growth in income. We have always had a firm belief
in companies that deliver income. This is now being recognised so we are
benefiting from the growing trend, particularly in the US, Britain and even in
Asia, for companies to distribute a higher share of profits to investors. By
investing in quality assets we seek to grow our income and our capital and in
the last six months both have shown positive advances. We have also been well
rewarded by our allocation to the natural resources sector, including revenue
growth from our oil and mineral rights in the United States.'
Head of Equities Grant Lindsay said, 'Although the oil price rose to record
highs in the last half year, companies in the UK and US markets have so far
taken this pressure in their stride. In the US, companies are still expanding
activity as consumer confidence remains firm because of a buoyant housing
market. Although the oil price casts some uncertainty over the rest of the
year, the signs are that companies we have selected in our core markets remain
resilient.'
The financial services business, Alliance Trust Savings (ATS), which is 75%
owned by Alliance Trust, also expanded with revenue reaching a record high of £
2.3m. Over the first half-year, the total customer assets ATS administers grew
by 11.3% to £1.6bn at the end of July. Net inflows to ATS rose by 9% overall in
the half year, against the same period of 2004.
Notes to editors
1. The Alliance Trust PLC is the third-largest UK investment trust by
assets, according to performance figures published in June published
by Standard and Poor's.
Based in Dundee, it is a FTSE-250 company with a net asset value of £
1.8bn as at July 31, 2005. It has been investing since 1888.
2. Alliance Trust owns 75% of Alliance Trust Savings (ATS), a financial
services company that administers more than £1.6bn on behalf of over
36,000 customers. The Second Alliance Trust PLC owns the remainder.
3. These figures are unaudited.
4. .Photographs of Alan Harden and Grant Lindsay are available on
request.
5. The unaudited consolidated financial statements have been calculated
for the first time to apply International Financial Reporting
Standards ('IFRS') and comparative figures produced have been restated
to conform with IFRS. Previous announcements were produced under UK
Generally Accepted Accounting Practice.
6. Past performance is not a guide to future performance.
For more information please contact:
Jane Holligan
Media Relations Manager
Alliance Trusts
Tel: (01382) 201700
Mobile: (07745) 783212
Email: jane.holligan@alliancetrusts.com
Website: www.alliancetrusts.com
Friday, 22nd November 2024
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