Further re Final Results
FIDELITY ASIAN VALUES PLC
ADDITIONAL DISCLOSURES
TO THE PRELIMINARY RESULTS FOR THE YEAR TO 31 JULY 2008
Further to the voluntary disclosure of the Company's annual results for the
year ended 31 July 2008 by way of a preliminary announcement dated 30 September
2008, in accordance with the Disclosure and Transparency Rules ("the Rules")
4.1.3 and 6.3.5(2) this announcement contains the text of the preliminary
announcement dated 30 September 2008 together with the additional text in
compliance with the Rules.
The Company's annual report and financial statements for the year ended 31 July
2008 have been filed with the UK Listing Authority Document Disclosure team and
are available on the Company's website at www.fidelity.co.uk/its
Chairman's Statement
PERFORMANCE
Over the 12 months to 31 July 2008 the net asset value per share of Fidelity
Asian Values PLC declined by 15.6%. In comparison the benchmark MSCI All
Countries (Combined) Far East Free ex Japan Index fell by 10.7%. The share
price declined by 13.0% over the period. (All figures in sterling terms and on
a total return basis.) This underperformance against the benchmark should be
seen against the background of a more encouraging longer term record. Over the
three and five years to 31 July 2008 the Company's net asset value rose by
38.9% and 109.7 % respectively against rises of 37.8% and 99.6% by the
benchmark.
A revenue surplus of £499,000 has been made over the year. Subject to
shareholders' approval at the 2008 Annual General Meeting the Directors
recommend that a final dividend in respect of the year to 31 July 2008 of 0.81
pence per share be paid to shareholders on the register at close of business on
10 October 2008 (ex dividend date 8 October 2008). As the Company's objective
is long term capital growth any revenue surplus is a function of a particular
year's business and it should not be assumed that dividends will ordinarily be
payable.
MARKETS
After a sharp fall in the early summer of 2007 Asian equities started the
review period on a positive note. They ended the financial year in negative
territory having succumbed to a series of global issues that led markets down.
Record oil prices and rising inflation were the key concerns in Asia. Increased
write downs by international financial institutions also eroded investor
confidence. Fears that Asian exports would not remain immune to a US slowdown
added to the general malaise. There was a sharp increase in the number of
earnings downgrades while redemptions from the region rose as increasingly risk
averse overseas investors withdrew funds.
Against this backdrop investors favoured the lower risk developed markets of
Australia, Singapore and Hong Kong over their counterparts in emerging Asia and
moved into sectors seen to benefit from robust domestic demand. Interest rate
cuts in the US in the first half of the review period, aimed at stimulating
growth in the world's largest economy, also had a positive impact.
Economic activity remained relatively robust, albeit moderated from 2007
levels, but inflation increased more than anticipated. Central banks in the
region, including the People's Bank of China, raised their key interest rates
and took other policy initiatives to regulate their financial markets. The
higher cost of borrowing dampened the outlook for property, retail, financial
and industrial companies although rising commodity prices were supportive of
profits at mining and oil firms, particularly in Indonesia and Australia.
OUTLOOK FOR THE REGION
Though the events of the past year have largely put paid to theories of
"decoupling", the Asia Pacific region has so far held up well in the face of
slowing growth in more advanced economies and increased stress in financial
markets. Continuing high oil and commodity prices are likely to put pressure on
domestic consumption and corporate profitability in the region. The trade
balances of countries with significant oil imports will also suffer, and
corporate profit margins will be squeezed by inflationary pressures.
Conversely, recent strong investment and infrastructure trends should continue
and thereby help to sustain growth in the region. And market volatility should
throw up stock picking opportunities for adroit managers.
I write this statement against the background of a deepening banking crisis,
markets around the world have fallen heavily. In the short term the outlook is
very cloudy but there are grounds for optimism that Asian economies and markets
will emerge less damaged than those of the developed world.
TENDER OFFER AND REDUCTION OF CAPITAL
After the end of the year under review a tender offer was made for up to 40% of
the Company's issued share capital. The Board took this action to avoid the
potentially destabilising effect on the share price of certain shareholders
wishing to realise their holdings. Following shareholders' approval at an
Extraordinary General Meeting of the Company held on 5 September 2008 and
completion of the tender offer a total of 41,262,764 ordinary shares have been
cancelled from the Register of Members. This equates to 40% of the issued share
capital immediately prior to the offer being made. Exiting shareholders bore
the costs involved and the remaining shareholders received the benefit of an
uplift to the net asset value of some 2% on the day the tender offer was
completed. As agreed by shareholders at the 5 September EGM the Company has
applied to the Court to confirm a reduction of capital by way of the
cancellation of the share premium account and capital redemption reserve,
including the capital redemption reserve arising on the implementation of the
tender offer. This was done in order to ensure that the Company will have
sufficient distributable reserves to continue to implement share repurchases.
GEARING
The amount of the US$18 million short term loan available to gear the portfolio
was reduced pro rata to the reduced size of the Company following the tender
offer. Currently the loan stands at US$11 million. During the period under
review the portfolio manager was given greater flexibility to maintain gearing
than in prior years because of the increased volatility of the markets.
Currently the net gearing parameters set by the Board are between 0 and 10%.
VAT ON MANAGEMENT FEES
The Board has noted the final judgment from the European Court of Justice in
favour of the claim by JPMorgan Claverhouse plc that Her Majesty's Revenue and
Customs had been wrong in requiring UK investment trusts to pay VAT on their
management fees. As the Company has recovered virtually all the VAT it has been
charged it does not expect further significant recovery of VAT. Hence no
further VAT refund has been accounted for in the accompanying financial
statements. The Company is no longer paying VAT on management fees.
ANNUAL GENERAL MEETING
The 2008 Annual General Meeting will be held on Friday 5 December 2008 at
Fidelity's Cannon Street office commencing at 11.00 am. All shareholders and
Fidelity Savings Plan and ISA Scheme investors are invited to attend. The
portfolio manager will be making a presentation on the year under review and
immediate prospects for the Company.
Sir Victor Garland
Chairman
30 September 2008
Manager's Review
MARKETS
Asia Pacific stockmarkets, weighed down by concerns related to global economic
growth and rising inflation, retreated over the twelve month review period. The
likely impact of a slowdown in the US economy, Asia's key customer, on South
East Asian exports and the reduced availability of finance had a negative
impact on investor confidence. As a further complication spiralling oil prices
led to heightened volatility in this energy intensive region.
Not without reason investors favoured defensive sectors. Consequently shares in
the health care and telecommunication services sectors advanced. Rising coal
and metal prices were supportive of profits at mining firms. Despite some
moderation economic activity in the region remained robust but inflation
continued to climb higher than expectations. The Chinese economy moved from
strength to strength recording double digit expansion despite the
implementation of a number of monetary tightening measures. Other central banks
in the region also raised their key interest rates and adopted a more stringent
monetary policy.
Strong consumption trends arising from low unemployment and rising salaries
supported retail stocks in Hong Kong although signs of weakness emerged towards
the end of the review period. Interest rate cuts in the US, to which rates in
Hong Kong are tied, also bolstered investor sentiment.
Stock indices in China corrected sharply after natural disasters in many parts
of the mainland caused widespread disruptions and exacerbated inflationary
pressures. Elsewhere in the region, Korean construction companies faced
headwinds in terms of strikes, rising raw material costs and accrual of
inventory in the domestic construction market. Technology stocks also lagged
despite a weaker currency while a slowdown in consumer spending inhibited the
retail sector. In Taiwan a lack of support from foreign institutional investors
and profit taking erased gains made during the period before the elections held
in March 2008.
PORTFOLIO REVIEW
The Company`s underweight position in comparison to the benchmark Index in the
materials sector, particularly in steel names, eroded returns as stocks
benefited from higher output prices. Concerns about the rising costs faced by
the industry continue to justify the underweight. For example, an exposure to
China's two largest paper manufacturers hurt performance after the half year
profits of these companies fell short of analysts' estimates due to increased
costs of imported recycled paper, their main raw material. These holdings were
sold over the review period.
Positions in Taiwanese technology hardware manufacturers, such as Hon Hai
Precision, proved detrimental. Such firms were especially hit by concerns about
demand for consumer electronics from the US. Their holding is retained due to
their strong market positions, attractive valuations and high dividend yields.
In contrast, the underweight exposure to Taiwanese financials hurt relative
returns after the positive sentiment surrounding the increasing ties with China
on the election of the new government in March saw asset plays and banking
stocks perform well. The portfolio remains underweight given factors such as
poor asset quality and the fact that it is the only banking sector in the
region that has not substantially reformed since the Asian crisis.
In Malaysia the ruling coalition's worst election result in decades weakened
business sentiment and hence saw the markets underperform. Although this is
seen as a positive in the longer term, as it encourages increased transparency
and government reforms, holdings in Malaysia were reduced mainly through the
liquidation of construction and engineering stocks. Names such as Zelan and UEM
among others were sold not only to take profits but in view of rising cost
pressures that were eroding these companies' margins.
Security selection in Korea contributed to the Company's returns. In particular
an exposure to household and personal products company LG Household & Health
Care proved beneficial because investors favoured sectors providing stable
returns in periods of high volatility. Holdings in Hong Kong's second largest
lender by assets, Hang Seng Bank, were also rewarding due to healthy growth in
its credit loans despite a moderation in the industry. Increased margins and
demand for new oil rigs aided energy equipment providers such as Malaysia based
KNM Group.
Over the year the Company's exposure to retail names, which gained from robust
domestic demand in the region, was significantly increased. Compelling
opportunities in Hong Kong retailers, particularly in Belle International and
Esprit Holdings, were identified. Belle's share price is expected to rise in
the light of positive merger and acquisition activity and Esprit is favoured
because of solid growth and its market share gains in Asia and Europe.
The overweight exposure to Singapore was boosted over the period. Singaporean
banks, such as United Overseas Bank, are in favour because of their defensive
nature. These banks have a strong deposit franchise, conservative balance
sheets and are beneficiaries of widening lending spreads. A stake in
Singapore's largest publicly traded electronics manufacturer, Venture
Corporation, was also added in light of healthy growth in all its segments
other than retail store solutions. An appreciating local currency and a
challenging end demand environment notwithstanding, this company's margins have
remained strong and are among the highest in the industry. The mark to market
write downs in debt instruments could be offset by an increase in high margin
original design manufacture activities and a better product mix.
The exposure to telecommunications stocks was gradually raised as they offer
stable growth and healthy dividend yield in this volatile market. A position
was initiated in Singapore Telecom because of its diversified operations,
exposure to growth markets such as India, Indonesia and Thailand, and a stable
dividend policy. The political situation in Thailand and Malaysia is being
closely monitored.
OUTLOOK
Equities are likely to remain volatile in the near term. Inflation could
squeeze the profit margins of firms that are unable to pass on rising costs.
Asia Pacific ex Japan markets could outperform their global counterparts on the
strength of their superior corporate performance and better economic
fundamentals. Investments with strong balance sheets and healthy valuations,
notably in selected stocks in China where more attractive valuations are
emerging, have merit. In an unsteady global milieu, the favourable policy
conditions and productivity growth associated with the region's modernisation
and structural transformation should continue to sustain strong growth.
Consequently, economists believe that GDP growth in Asia Pacific ex Japan will
surpass that of all other regions in 2008 even though it will be much slower
than in 2007.
Although the prevailing market conditions have necessitated the slightly more
defensive tilt of the Company's investments, short term corrections can present
good buying opportunities. At the end of the review period the portfolio
demonstrated a bias towards firms that have defensive characteristics but that
also provide strong growth opportunities.
FIL Investments International
30 September 2008
Principle risks and uncertainties
The Board confirms that there is an ongoing process for identifying, evaluating
and managing the principal
risks which fall under the general headings of strategic, business and
operational risks. This process is regularly reviewed by the Board in
accordance with the Financial Reporting Council's document Internal Control:
Revised Guidance for Directors on the Combined Code.
An internal controls report, which includes a risk matrix and the assessment of
risks applicable to the Company, is prepared by the Manager and considered by
the Audit Committee. Risks are identified, introduced and graded and this
process, together with the policies and procedures for the mitigation of risks,
is updated and the report is reviewed twice a year.
The Board reviews and agrees policies, which have remained unchanged since the
beginning of the accounting period, for managing risks and summaries of these
are set out below.
1. Market risks
The inevitable uncertainty about prices and the portfolio manager's success or
failure to protect and increase the Company's assets against this background is
core to the Company's continued justification. Other factors affected by market
forces, such as exchange and bond rates, contribute to risks which have to be
taken as part of the Company's normal business.
2. Performance risk
The achievement of the Company's performance objective relative to the market
involves risk. Strategy, asset allocation and stock selection might lead to
under performance of the benchmark Index and target. Management of these risks
is carried out by the Board which, at each Board meeting, considers the asset
allocation of the portfolio and the risks associated with particular countries
and industry sectors within the parameters of the investment objective. The
portfolio manager is responsible for actively monitoring the portfolio selected
in accordance with the asset allocation parameters and seeks to ensure that
individual stocks meet an acceptable risk-reward profile. The net asset value
of the Company is published each working day.
3. Income risk - dividends
The Company's objective of long term capital growth relies less on income to
support dividends than investment trust companies with a more income oriented
target. Nevertheless, generating income to meet expenses and provide adequate
reserves is subject to the risk that income generation from its investments
fails to meet the level required. The Board monitors this risk through the
receipt of detailed income reports and forecasts which are considered at each
meeting.
4. Share price risk
The price of the Company's shares relative to the benchmark Index and in
absolute terms, as well as its discount to NAV, are not factors the Company is
able to control. Some short term influence over the discount may be exercised
by the use of share repurchases at acceptable prices.
The Company's share price, NAV and discount volatility are monitored daily by
the Manager and considered by the Board at each of its meetings.
5. Gearing risk
The Company has the option to invest up to the total of its loan facilities in
equities. In a rising market the Company would benefit but in a falling market
the impact would be detrimental.
In order to manage the level of gearing the Board regularly considers this item
and sets gearing limits accordingly. The portfolio manager follows these and
may invest part of the loan facility in Fidelity Institutional Cash Fund plc
and short term cash deposits to control the level of net gearing.
6. Control systems risk
The Company is dependent on the Manager's control systems and those of its
Custodian and Registrars, both of which are monitored and managed by the
Manager in the context of the Company's assets and interests on behalf of the
Board. The security of the Company's assets, dealing procedures and the
maintenance of investment trust status under s842 of ICTA, among other things,
rely on the effective operation of such systems. These are regularly tested and
a programme of internal audits is carried out by the Manager to maintain
standards.
Other risks
Other risks to which the Company is exposed and which form part of the Market
risks referred to above are
included in note 18 to the financial statements together with the summaries of
the policies for managing these risks. These comprise: market price risk,
foreign currency risk, interest rate risk, liquidity risk and credit risk.
Related Party Transactions
No Director is under a contract of service with the Company and no contracts
existed during or at the end of the financial period in which any Director was
materially interested and which was significant in relation to the Company's
business, except as disclosed above in relation to Kathryn Matthews's interests
in the Management Agreement. There have been no other related party
transactions requiring disclosure under Financial Reporting Standard ("FRS") 8.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the annual report and the financial
statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law they have elected to prepare the financial
statements in accordance with UK Generally Accepted Accounting Practice.
The financial statements are required by law to give a true and fair view of
the state of affairs of the Company and of the profit or loss for the period.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject
to any material departures disclosed and explained in the financial statements;
and
• prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
The Directors are responsible for ensuring that proper accounting records are
kept which disclose with reasonable accuracy at any time the financial position
of the Company and to enable them to ensure that its financial statements
comply with the Companies Act 1985. They are also responsible for safeguarding
the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Under applicable law and regulations the Directors are also responsible for
preparing a Directors' Report, including a Business Review, a Directors'
Remuneration Report and a Corporate Governance Statement that comply with that
law and those regulations.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website
www.fidelity.co.uk/its. Legislation in the UK governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
We confirm that to the best of our knowledge: the financial statements,
prepared in accordance with the applicable set of accounting standards, give a
true and fair view of the assets, liabilities, financial position and profit or
loss of the Company; and the Directors' Report includes a fair review of the
development and
performance of the business and the position of the Company together with a
description of the principal risks and uncertainties it faces.
Approved by the Board on 30 September 2008 and signed on its behalf by Sir
Victor Garland, Chairman
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF FIDELITY ASIAN VALUES PLC
We have audited the financial statements (the `financial statements') of
Fidelity Asian Values PLC for the year ended 31 July 2008, which comprise the
income statement, the balance sheet, the cash flow statement, the
reconciliation of movements in shareholders' funds and notes 1 to 21. These
financial statements have been prepared under the accounting policies set out
therein. We have also audited the information in the Directors' Remuneration
Report that is described as having been audited.
This report is made solely to the Company's members, as a body, in accordance
with Section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the Company's members those matters we are required
to state to them in an auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body, for our
audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
The Directors' responsibilities for preparing the Annual Report, the Directors'
Remuneration Report and the financial statements in accordance with United
Kingdom law and Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) are set out in the Statement of Directors'
Responsibilities.
Our responsibility is to audit the financial statements and the part of the
Directors' Remuneration Report to be audited in accordance with relevant legal
and regulatory requirements and International Standards on Auditing (UK and
Ireland).
We report to you our opinion as to whether the financial statements give a true
and fair view and whether the financial statements and the part of the
Directors' Remuneration Report to be audited have been properly prepared in
accordance with the Companies Act 1985. We also report to you whether in our
opinion the information given in the Directors' Report is consistent with the
financial statements.
In addition we report to you if, in our opinion, the Company has not kept
proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law
regarding Directors' remuneration and other transactions is not disclosed. We
review whether the Corporate Governance Statement reflects the Company's
compliance with the nine provisions of the 2006 Combined Code specified for our
review by the Listing Rules of the Financial Services Authority, and we report
if it does not. We are not required to consider whether the Board's statements
on internal control cover all risks and controls, or form an opinion on the
effectiveness of the Company's corporate governance procedures or its risk and
control procedures.
We read other information contained in the Annual Report and consider whether
it is consistent with the audited financial statements. The other information
comprises only Objective and Highlights, Financial Summary, Chairman's
Statement, the unaudited part of the Directors' Remuneration Report, Full
Portfolio Listing and Distribution of the Portfolio. We consider the
implications for our report if we become aware of any apparent misstatements or
material inconsistencies with the financial statements. Our responsibilities do
not extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements and the part of the Directors'
Remuneration Report to be audited. It also includes an assessment of the
significant estimates and judgements made by the Directors in the preparation
of financial statements, and of whether the accounting policies are appropriate
to the Company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
and the part of the Directors' Remuneration Report to be audited are free from
material misstatement, whether caused by fraud or other irregularity or error.
In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements and the part of the
Directors' Remuneration Report to be audited.
OPINION
In our opinion:
• The financial statements give a true and fair view, in accordance with United
Kingdom Generally Accepted Accounting Practice, of the state of the Company's
affairs as at 31 July 2008 and of its loss for the year then ended;
• The financial statements and the part of the Directors' Remuneration Report
to be audited have been properly prepared in accordance with the Companies Act
1985; and
• The information given in the Directors' Report is consistent with the
financial statements.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
London
30 September 2008
Enquiries:
Graham Symonds, FIL Investments International, Company Secretary - 01737 837
345
Richard Miles, Director Corporate Communications, FIL Investments International
- 020 7961 4921
FIDELITY ASIAN VALUES PLC
Income Statement
- for the year ended 31 July 2008
2008 2007
revenue capital total revenue capital total
£'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on - (26,390) (26,390) - 55,516 55,516
investments
Income
- overseas dividends 4,188 - 4,188 3,350 - 3,350
- overseas scrip 241 - 241 164 - 164
dividends
- overseas interest - - - 16 - 16
- deposit interest 150 - 150 139 - 139
Investment management fee (1,688) - (1,688) (1,528) - (1,528)
Other expenses (474) - (474) (498) - (498)
Exchange losses on other (14) (26) (40) (5) (238) (243)
net assets
Exchange (losses)/gains - (247) (247) - 815 815
on loans
Net return/(loss)before 2,403 (26,663) (24,260) 1,638 56,093 57,731
finance costs and
taxation
Interest payable (516) - (516) (519) - (519)
Net return/(loss)on 1,887 (26,663) (24,776) 1,119 56,093 57,212
ordinary activities
before taxation
Taxation on return on (398) - (398) (461) (35) (496)
ordinary activities*
Net return/(loss)on 1,489 (26,663) (25,174) 658 56,058 56,716
ordinary activities after
taxation for the year
Return/(loss) per
ordinary share
Basic 1.43p (25.57p) (24.14p) 0.63p 53.37p 54.00p
Diluted - - - 0.62p 53.35p 53.97p
A Statement of Total Recognised Gains and Losses has not been prepared as there
are no gains and losses other than those reported in this Income Statement. The
total column of the Income 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 year.
* This relates to overseas taxation only.FIDELITY ASIAN VALUES PLC
Reconciliation of Movements in Shareholders' Funds - for the year ended 31 July
2008
called share capital other other warrant capital capital revenue total
up premium redemption non-distributable reserve reserve reserve reserve reserve equity
share account reserve reserve realised unrealised
capital
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Opening 23,377 12 2,330 - 59,284 7,367 (9,110) 17,465 (1,648) 99,077
shareholders'
funds: 1
August 2006
Net - - - - - - 19,908 36,150 - 56,058
recognised
capital gains
for the year
Repurchase of (1,157) - 1,157 - (5,535) - - - - (5,535)
ordinary
shares
Revenue after - - - - - - - - 658 658
taxation
Exercise of 5,116 15,347 - 7,367 - (7,367) - - - 20,463
warrants
Closing 27,336 15,359 3,487 7,367 53,749 - 10,798 53,615 (990) 170,721
shareholders'
funds: 31
July 2007
Transfer - - - - - - 52,787 (52,787) - -
between
reserves*
Net - - - - - - (26,432) (231) - (26,663)
recognised
capital
losses for
the year
Repurchase of (1,547) - 1,547 - (9,606) - - - - (9,606)
ordinary
shares
Revenue after - - - - - - - - 1,489 1,489
taxation
Closing 25,789 15,359 5,034 7,367 44,143 - 37,153 597 499 135,941
shareholders'
funds: 31
July 2008
* In accordance with TECH 01/08: Distributable Profits - with effect from 1
August 2007 changes in fair value of investments which are readily convertible
to cash without accepting adverse terms at the balance sheet date are included
in realised rather than unrealised capital reserves. The balances on both
reserves at 1 August 2007 have been amended by a reserve transfer to reflect
this change.
FIDELITY ASIAN VALUES PLC
Balance Sheet
- as at 31 July2008
2008 2007
£'000 £'000
Fixed assets
Investments at fair value through profit or loss 136,356 175,057
Current assets
Debtors 634 5,949
Cash at bank 8,954 4,696
9,588 10,645
Creditors - amounts falling due within one year
Other creditors (916) (6,141)
(916) (6,141)
Net current assets 8,672 4,504
Total assets less current liabilities 145,028 179,561
Creditors - amounts falling due after more than one
year
Fixed rate unsecured loan (9,087) (8,840)
Total net assets 135,941 170,721
Capital and reserves
Called up share capital 25,789 27,336
Share premium account 15,359 15,359
Capital redemption reserve 5,034 3,487
Other non-distributable reserve 7,367 7,367
Other reserve 44,143 53,749
Capital reserve - realised 37,153 10,798
Capital reserve - unrealised 597 53,615
Revenue reserve 499 (990)
Total equity shareholders' funds 135,941 170,721
Net asset value per ordinary share 131.78p 156.13p
FIDELITY ASIAN VALUES PLC
CashFlow Statement
- for the year ended 31 July 2008
2008 2007
£'000 £'000
Operating activities
Investment income received 3,546 2,713
Deposit interest received 154 144
Investment management fee paid (1,272) (1,447)
Directors' fees paid (60) (71)
Other cash payments (566) (379)
Net cash inflow from operating activities 1,802 960
Returns on investments and servicing of finance
Interest paid (511) (403)
Net cash outflow from returns on investments and (511) (403)
servicing of finance
Financial investment
Purchase of investments (84,344) (123,551)
Disposal of investments 96,901 111,301
Net cash inflow/(outflow)from financial investment 12,557 (12,250)
Net cash inflow/(outflow)before financing 13,848 (11,693)
Financing
Repurchase of ordinary shares (9,606) (5,535)
Exercise of warrants - 20,463
5.60% fixed rate unsecured loan drawn down - 9,541
6.28% fixed rate unsecured loan repaid - (9,541)
Net cash (outflow)/inflowfrom financing (9,606) 14,928
Increasein cash 4,242 3,235
Returns/(losses) per ordinary share are based on the net revenue return on
ordinary activities after taxation of £1,489,000 (2007: £658,000), the capital
loss in the year of £26,663,000 (2007: return £56,058,000) and the total loss
in the year of £25,174,000 (2007: return £56,716,000) and on 104,262,596
ordinary shares (2007: 105,041,064) being the weighted average number of
ordinary shares in issue during the year.
In accordance with the provisions of FRS14, the prior year diluted returns have
been calculated on the assumption that the warrants in issue were converted on
the first day of the financial period on a weighted average basis for the
period over which they were outstanding and that the proceeds from the
conversion have been used by the Company to purchase its own shares at a fair
market price. There are no diluted returns in the current reporting year as no
warrants remain outstanding.
The above statements have been prepared on the basis of the accounting policies
as set out in annual financial statements to 31 July 2008. The statutory
financial statements for the financial year ended 31 July 2008 have been
approved and audited but have not yet been filed. The statutory financial
statements for the financial years ended 31 July 2007 and 31 July 2008 received
unqualified audit reports, did not include a reference to any matters to which
the auditors drew attention by way of emphasis without qualifying the report
and did not contain statements under section 237(2) and (3) of the Companies
Act 1985. The annual report and financial statements will be posted to
shareholders as soon as is practicable and in any event no later than 6
November 2008.
CB34757/na
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