Interim Results

FIDELITY EUROPEAN VALUES PLC Preliminary Announcement of Unaudited Results For the six months ended 30 June 2004 Performance During the first six months of the year, the net asset value rose by 6. 9% to 690.4p per share, compared with a return of 1.3% for the FTSE World Europe ex UK Index . (All figures in sterling terms and on a total return basis. ) Past performance is not a guide to future returns. The value of investments can go down as well as up, and may be affected by exchange rate fluctuations. Market Review The performance of European equities during the first six months of 2004 was influenced by a combination of concerns over the strength of the economic recovery, US economic news and global political developments. European economic growth accelerated in the first three months of 2004 to 0.6% quarter-on-quarter, its fastest pace in three years. The expansion was buoyed by strengthening demand from overseas. However, economic growth continued to exhibit a marked divergence between member states, with the peripheral countries tending to show higher rates of growth. For example, over the first quarter, the Greek economy grew by 1.7% and the Spanish economy rose by 0.8%. Of the larger core European countries, the French economy led the way, growing by 0.8% quarter-on-quarter, whilst German gross domestic product (GDP) rose by 0.4%. The European Central Bank (ECB) decided to keep interest rates at 2.0% during the period. This was despite the modest recovery in economic growth across Europe and a pick up in inflation. After a period of marked currency adjustments characterised by a weak US dollar in 2002 and 2003, currencies were stable during the first part of 2004. Unemployment remained a worry in the major member eurozone countries. German unemployment rose over the period and stood at 10.5% at the end of May. It was a similar story in France, where after a slight improvement in April, unemployment stagnated in May at 9.8%. Portfolio Manager Report On balance, the more defensive areas of the market, including health, beverages, utilities and aerospace stocks, outperformed during the period, while technology, electrical and telecommunication service stocks underperformed. Set against this background, the performance of the portfolio during the period was influenced by successful security selection. In addition, the strong performance of smaller and medium-sized companies was beneficial, as the portfolio had a high exposure to these areas of the market. The portfolio continued to have a focus on smaller and medium-sized companies combined with the manager's value-driven, stock-selection approach. At sector level, the portfolio was positioned with a relatively neutral balance between defensive and economically-sensitive sectors. At the end of the review period, the portfolio held an above average weighting in domestic economy stocks, for example, construction, leisure, real estate and transport. In addition, the portfolio had a strong weighting in the resources sector, notably oil stocks, with a high weighting in mid cap and Scandinavian oil companies. The portfolio had a below-average weighting in export-oriented and technology stocks and a relatively neutral weighting in defensive and telecommunication stocks. There continued to be a notable bias at country level, with a weighting in favour of the smaller peripheral countries in Europe, including Denmark and Norway, and Eastern Europe. As a result, the portfolio had a lower exposure to the larger core European markets including Germany and the Netherlands. Outlook Although the pace of growth in Europe has picked up over the last few quarters, there is still an imbalance between relatively strong output in the manufacturing sector, currently driven by exports, and consumers, who are cautious. Therefore, economists are expecting the recovery to be modest in the near term. According to consensus forecasts, the eurozone economy is projected to grow by 1.7% in 2004 and by 2.1% in 2005. Although high crude-oil prices have contributed to wholesale price inflation in recent months, consumer prices should remain under control as there is spare capacity among companies and in the labour market after three years of below-trend growth. Consequently, the likelihood of an imminent rise in interest rates appears limited, consumer spending in the core European economies remains muted and the European recovery trails that of other major developed regions. The diversity of growth rates and consumer behaviour within economies across Europe is expected to continue. Relatively high savings rates in the region provide the potential for increases in consumer spending over time, in contrast to markets, such as the US, where savings ratios are low. Dividend The Company is not proposing to pay an interim dividend. By order of the Board Fidelity Investments International 23 July 2004 Enquiries: Barbara Powley - Fidelity Investments International 01737 836 883 Issued by Fidelity Investments International. Authorised and regulated by the Financial Services Authority. CB19099 FIDELITY EUROPEAN VALUES PLC Statement of Total Return (incorporating the revenue account) For the six months ended 30 June 2004 for the six months for the year ended for the six months ended ended 30.06.04 31.12.03 30.06.03 unaudited audited unaudited revenue capital total revenue capital total revenue capital total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains on - 20,153 20,153 - 115,874 115,874 - 50,079 50,079 investments Income - 10,066 - 10,066 11,058 - 11,058 8,894 - 8,894 Dividend - Interest 38 - 38 177 - 177 144 - 144 Investment (2,809) - (2,809) (4,674) - (4,674) (2,141) - (2,141) management fee Other (441) - (441) (942) - (942) (398) - (398) expenses Exchange - (351) (351) - 490 490 - 376 376 (losses)/ gains Repurchase - - - - (926) (926) - - - of shares Net return 6,854 19,802 26,656 5,619 115,438 121,057 6,499 50,455 56,954 before finance costs and taxation Interest (1,570) - (1,570) (3,283) - (3,283) (1,594) - (1,594) payable Exchange - 3,150 3,150 - (4,974) (4,974) - (3,729) (3,729) gains/ (losses) on loans Return on 5,284 22,952 28,236 2,336 110,464 112,800 4,905 46,726 51,631 ordinary activities before taxation Tax on (1,209) - (1,209) (1,120) - (1,120) (928) - (928) ordinary activities Return on 4,075 22,952 27,027 1,216 110,464 111,680 3,977 46,726 50,703 ordinary activities after tax for the period attributable to equity shareholders Dividend - - - (941) - (941) 3 - 3 Transfer to 4,075 22,952 27,027 275 110,464 110,739 3,980 46,726 50,706 reserves Return per ordinary share Basic 6.48p 36.49p 42.97p 1.93p 175.56p 177.49p 6.32p 74.24p 80.56p These financial statements have been prepared in accordance with the AITC Statement of Recommended Practice (SORP) issued in January 2003. Dividend - No dividend has been declared in the current period (31.12.03: 1.50p; 30.06.03: nil). FIDELITY EUROPEAN VALUES PLC Balance Sheetas at 30 June 2004 30.06.04 31.12.03 30.06.03 unaudited audited unaudited £'000 £'000 £'000 Fixed assets Investments 494,432 469,500 398,832 Current assets Debtors - amounts falling 5,951 7,234 6,621 due within one year Cash at bank 1,166 1,249 12,426 7,117 8,483 19,047 Creditors - amounts falling due within one year Other creditors (6,859) (7,170) (9,271) Net current assets 258 1,313 9,776 Total assets less current 494,690 470,813 408,608 liabilities Creditors - amounts falling due after more than one year Fixed rate unsecured loans (60,407) (63,557) (62,312) Total net assets 434,283 407,256 346,296 Capital and reserves Called up share capital 15,725 15,725 15,725 Share premium account 58,615 58,615 58,615 Capital redemption reserve 100 100 100 Other reserves Capital reserve - realised 292,588 245,461 229,300 Capital reserve - unrealised 59,414 83,589 35,085 Revenue reserve 7,841 3,766 7,471 Total equity shareholders' 434,283 407,256 346,296 funds Net asset value per ordinary share: Basic 690.40p 647.43p 550.52p The balance sheet as at 31 December 2003 has been extracted from the financial statements for the year ended 31 December 2003 which have been delivered to the Registrar of Companies and on which the auditors gave an unqualified report. FIDELITY EUROPEAN VALUES PLC Cash Flow Statementfor the six months ended 30 June 2004 30.06.04 31.12.03 30.06.03 unaudited audited unaudited £'000 £'000 £'000 Operating activities Investment income received 8,384 9,397 6,694 Interest received 38 185 144 Investment management fee (2,703) (4,397) (2,019) paid Directors' fees paid (17) (26) (26) Other cash payments (349) (582) (260) Net cash inflow from 5,353 4,577 4,533 operating activities Returns on investments and servicing of finance Interest paid (1,579) (3,300) (1,620) Net cash outflow from (1,579) (3,300) (1,620) returns on investments and servicing of finance Taxation Overseas tax recovered 189 194 223 Tax recovered 189 194 223 Financial investment Purchase of investments (216,241) (364,466) (204,284) Exchange (losses)/gains (351) 600 583 Disposals of investments 213,484 357,355 206,801 Net cash (outflow)/inflow (3,108) (6,511) 3,100 from financial investment Equity dividend paid (944) (754) (755) Net cash (outflow)/inflow (89) (5,794) 5,481 before financing Financing Repurchase of ordinary - (926) (926) shares Net cash outflow from - (926) (926) financing (Decrease)/increasein cash (89) (6,720) 4,555 Copies of the interim report will be posted to shareholders as soon as practicable. Copies will also be available to the public at the Company's registered office, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.

Companies

Fidelity European Trust (FEV)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today