Final Results

Aberdeen New Dawn Invest Trust PLC 21 July 2006 ABERDEEN NEW DAWN INVESTMENT TRUST PLC PRELIMINARY ANNOUNCEMENT OF ANNUAL UNAUDITED RESULTS for the year ended 30 April 2006 Chairman's Statement Background and Results I am pleased to report that New Dawn has had another excellent performance in the year to 30 April 2006. The Company's net assets produced a total return of 54.5%, significantly outperforming the MSCI Asia Pacific (ex Japan) Index's return of 47.5%. The share price increased 67.2% as the premium on asset value expanded. We are proposing to maintain the dividend this year which equates to an increase of 25% in the Ordinary dividend - further details are below. Over the past year, Asian equities continued to find favour with investors, as the region's healthy earnings growth and dividends attracted robust fund inflows. India, in particular, benefited from overseas liquidity, due in part to the euphoria surrounding the so-called BRICs (Brazil, Russia, India and China) investment bloc; its index approximately doubled over the period. South Korea saw strong gains, as domestic investor participation picked up, on renewed confidence over the economy's prospects and policy initiatives; while the commodities boom favoured Australia. However, one laggard over the period was Malaysia, where the slow pace of economic reform weighed on the market. Asia's economic performance was similarly buoyant, despite the hurdles posed by the high oil price and rising interest rates. Underlying growth remained healthy, aided by a recovering export cycle. Additionally, China's burgeoning demand for both finished goods and raw materials boosted inter-regional trade, as its GDP rose by approximately 10% in 2005. The Asian consumer was also a source of strength, and this has been reflected in rising asset prices. However, in some countries, political instability has returned. In Thailand, the sale of prime minister Thaksin's telecom assets for US$2 billion prompted street protests in Bangkok that led to snap elections. Thaksin then stepped down. However an opposition boycott, and the subsequent annulment of the result - which saw his party win comfortably - has left the country in limbo. Fresh elections are scheduled for October. In Taiwan, president Chen Shui Bian's popularity with voters continued to plummet amid mounting calls for his resignation, after he became embroiled in a share-trading scandal. Meanwhile, South Korea's ruling Uri Party was dealt a severe blow, after the opposition party won an overwhelming majority in local elections. In the Philippines, president Gloria Arroyo declared a temporary state of emergency, after an alleged coup attempt was foiled. Dividend It has been another good year for the Company's revenue account. Gross income has increased by 4.9% over last year, to £3.3 million boosted by a number of special dividends from our investee companies. Accordingly, your Board recommends that the special dividend of 1.0p paid last year be consolidated into a final dividend of 5.0p per Ordinary share, an increase of 25% on last year which, if approved, will be payable on 31 August 2006 to shareholders on the register on 4 August 2006. Therefore, the Board is not proposing to pay a special dividend for this year. Gearing and Share Issuance During the year the Company has retained a modest level of gearing in its portfolio. At the year end approximately £7.5 million was drawn under the Company's £12 million revolving credit facility representing approximately 5.9% of the Company's net assets. This year we have issued 1.98 million shares at an average premium to asset value of approximately 3.5%. The Annual General Meeting will be held on 29 August 2006 at 12.30 pm and the Board looks forward to meeting as many shareholders as possible. The ordinary business at the AGM includes the approval of the dividend and the re-appointment of Directors. The special business includes renewal of the authority to issue up to 10% of the Company's issued share capital without pre-emption and the renewal of the authority to buy in Ordinary shares. For the first time the Company will take the authority to reissue shares out of treasury provided that any such treasury shares are only reissued at asset value or above. The Company has not bought in any shares during the year. Directorate I am stepping down as your Chairman at the AGM and Mr Alan Henderson has agreed to assume the role. Mr James West has decided to retire from the Company and not to seek re-election at this AGM. By his rotation off the Board, we will be able to begin to refresh the Board, as recommended by the AITC Code on Corporate Governance. We have engaged the services of an external recruitment consultant to help us in the search for a new Director and expect to make an announcement in the coming months, following a thorough search process. I would like to thank Jimmy for his contribution over the past 13 years that he has been a Director. Outlook Since our year end we have witnessed a substantial correction in world equity markets in reaction to inflationary fears and higher interest rates. Asian markets have not been immune and have taken their lead from Japan where the Tokyo market has fallen over 15% from the recent high in April. In Asia, India has been at the forefront, falling nearly 25% from its high. Having made significant gains over the past 12 months, a correction was overdue, and should be viewed as a healthy pause. That said, investors have grown more risk averse, and volatility is expected to increase and to be further exacerbated by current geopolitical concerns, including the escalating tensions in the Middle East, the missile tests by North Korea and the recent terror attacks in India's financial hub Mumbai. We expect Asian economic growth to slow to a more sustainable pace, in the face of rising interest rates, increased competition, higher input costs and the external headwinds brought about by an increasingly uncertain outlook for the US economy. This has been further complicated by the erratic behaviour of the US dollar, as well as the bond market, which saw the Treasury yield curve invert at the end of last year - usually the sign of a slowdown. Nonetheless, at the company level, Asia's outlook remains bright. The portfolio is trading on a price-earnings multiple of 15.4 times based on estimated calendarised 2006 earnings at the time of writing, together with a dividend yield of 2.9%. This valuation is in the middle of historic ranges, and we would not argue for a further upward re-rating, given the current high single digit earnings growth. Most encouraging to us is the strength of the balance sheets in the underlying companies in which we invest. In what promises to be a challenging period for Asian markets, I am confident that Hugh Young and his team in Singapore's emphasis on investing in good quality companies that are run by shareholder-friendly management, and at reasonable valuations, places the Company in good stead in the months ahead. I am encouraged for our Company's prospects and confident that this strategy will yield further outperformance in the longer term. Richard Clough Chairman 21 July 2006 INCOME STATEMENT Year ended 30 April 2006 Year ended 30 April 2005 (unaudited) (audited) (restated) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 42,363 42,363 - 5,338 5,338 Income 3,345 - 3,345 3,188 - 3,188 Investment management fee (452) (452) (904) (306) (306) (612) Administration expenses (499) (30) (529) (428) - (428) Exchange gains/(losses) 14 (450) (436) (18) 429 411 Net return before finance costs and taxation 2,408 41,431 43,839 2,436 5,461 7,897 Interest payable and similar charges (167) (167) (334) (107) (107) (214) Return on ordinary activities before taxation 2,241 41,264 43,505 2,329 5,354 7,683 Tax on ordinary activities (628) 186 (442) (736) 124 (612) Return on ordinary activities after taxation 1,613 41,450 43,063 1,593 5,478 7,071 Return per Ordinary share (pence): 6.58 169.20 175.78 6.84 23.51 30.35 The revenue column of this statement represents the revenue account of the Company. All revenue and capital items in the above statement derive from continuing operations. Balance Sheet As at As at 30 April 2006 30 April 2005 (unaudited) (audited) (restated) £'000 £'000 Fixed assets Investments at fair value through profit or loss 134,766 83,810 Current assets Debtors 423 539 Cash at bank and in hand 790 871 1,213 1,410 Creditors: amounts falling due within one year Foreign currency loans (7,496) (7,054) Other creditors (486) (676) (7,982) (7,730) Net current liabilities (6,769) (6,320) Total assets less current liabilities 127,997 77,490 Provision for liabilities and charges (90) (149) Net assets 127,907 77,341 Share capital and reserves Called-up share capital 6,347 5,852 Share premium account 17,955 9,777 Special reserve 14,138 14,138 Capital redemption reserve 10,207 10,207 Capital reserve - realised 7,067 7,025 Capital reserve - unrealised 67,449 26,041 Revenue reserve 4,744 4,301 Equity Shareholders' funds 127,907 77,341 Net asset value per Ordinary share (pence): 503.83 330.42 Reconciliation in Movements in Shareholders' Funds For the year ended 30 April 2006 (unaudited) Share Capital Capital Capital Share premium Special redemption reserve reserve Revenue capital account reserve reserve (realised) (unrealised) reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 April 2005 5,852 9,777 14,138 10,207 7,025 26,295 3,131 76,425 as originally reported Restatements - - - - - (254) 1,170 916 Balance at 30 April 2005 (restated) 5,852 9,777 14,138 10,207 7,025 26,041 4,301 77,341 Return on ordinary - - - - 42 41,408 1,613 43,063 activities after taxation Dividend paid - - - - - - (1,170) (1,170) Issue of Ordinary shares 495 8,178 - - - - - 8,673 Balance at 30 April 2006 6,347 17,955 14,138 10,207 7,067 67,449 4,744 127,907 For the year ended 30 April 2005 (audited) Share Capital Capital Capital Share premium Special redemption reserve reserve Revenue capital account reserve reserve (realised) (unrealised) reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 April 2004 5,817 9,317 14,138 10,207 6,119 21,791 2,708 70,097 as originally reported Restatements - - - - - (322) 884 562 Balance at 30 April 2004 (restated) 5,817 9,317 14,138 10,207 6,119 21,469 3,592 70,659 Return on ordinary - - - - 906 4,572 1,593 7,071 activities after taxation Dividend paid - - - - - - (884) (884) Issue of Ordinary shares 35 460 - - - - - 495 Balance at 30 April 2005 5,852 9,777 14,138 10,207 7,025 26,041 4,301 77,341 (restated) Cash Flow Statement Year ended Year ended 30 April 2006 30 April 2005 (unaudited) (audited) £'000 £'000 £'000 £'000 Net cash inflow from operating activities 1,906 2,175 Servicing of finance Bank and loan interest paid (339) (209) Taxation Net UK tax paid (616) (212) Withholding tax recovered - 1 Net tax paid (616) (211) Financial investment Purchases of investments (14,509) (7,907) Sales of investments 5,982 6,262 Net cash outflow from financial investment (8,527) (1,645) Equity dividend paid (1,170) (884) Net cash outflow before financing (8,746) (774) Financing Issue of new shares 8,673 494 Net cash inflow from financing 8,673 494 Decrease in cash (73) (280) Reconciliation of net cash flow to movements in net debt Decrease in cash as above (73) (280) Exchange movements (450) 429 Movement in net debt in the year (523) 149 Opening net debt (6,183) (6,332) Closing net debt (6,706) (6,183) Notes 1. Accounting Policies (a) Basis of accounting The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of fixed asset investments, and in accordance with applicable United Kingdom Accounting Standards and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies' (issued in January 2003 and revised in December 2005)('the SORP'). They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements, and the net asset value per share figures, have been prepared in accordance with UK Generally Accepted Accounting Principles (UK GAAP). The new Financial Reporting Standards, issued as part of the programme to converge UK GAAP with International Financial Reporting Standards (IFRS), were applicable for the accounting period ended 30 April 2006 and the financial statements for the year ended 30 April 2005 have also been restated (see note 20). The main changes arising from these revisions to UK GAAP, in relation to the Company's financial statements, are that: (i) dividends to Shareholders declared after the balance sheet date are now shown in the period of payment rather than in the reporting period. Dividends were previously recognised in the statement of total return (now Income Statement). These are now dealt with as an appropriation of equity and are taken directly through equity in the Reconciliation of Movements in Shareholders' Funds (ii) investments are measured initially at cost and are recognised at trade date. For financial assets acquired, the cost is the fair value of the consideration, with changes in fair value going to the profit and loss account. Subsequent to initial recognition investments are valued at fair value. For listed investments this is now assumed to be bid market prices. (b) Valuation of Investments Listed investments have been designated upon initial recognition as fair value through profit and loss. Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the time frame established by the market concerned, and are initially measured as cost. Subsequent to initial recognition, investments are valued at fair value. For listed investments, this is deemed to be bid market prices. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Income Statement and are ultimately recognised in the capital reserve - unrealised. (c) Income Dividends (other than special dividends), including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a time apportioned basis so as to reflect the effective yield on shares. Other returns on non-equity shares are recognised when the right to return is established. The fixed return on a debt security, if material, is recognised on a time apportioned basis so as to reflect the effective yield on each security. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital reserves. Interest receivable on bank balances is dealt with on an accruals basis. (d) Expenses All expenses are accounted for on an accruals basis. Expenses are charged through the Income Statement except as follows: - expenses directly relating to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds. Such transaction costs are disclosed in accordance with the SORP. - the Company charges 50% of investment management fees and finance costs to capital, in accordance with the Board's expected long term return in the form of capital gains and income respectively from the investment portfolio of the Company. (e) Deferred taxation Deferred taxation is provided on all timing differences, that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the balance sheet date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments. (f) Capital reserve Realised Gains or losses on investments realised in the year that have been recognised in the Income Statement are transferred to the realised capital reserve. In addition, any prior unrealised gains or losses on such investments are transferred from the unrealised capital reserve to realised capital reserve on disposal of the investment. Unrealised Increases and decreases in the fair value of investments are recognised in the Income Statement and are then transferred to the unrealised capital reserve. (g) Foreign currencies Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Balance Sheet date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Income Statement and are then transferred to the realised capital reserve. (h) Dividends payable Final dividends are dealt with in the period in which they are paid. 2. Dividend The Directors have today declared a final dividend of 5.00p per Ordinary share for the year ended 30 April 2006 (2005 - 4.0p plus 1.0p special dividend). The dividend will, if approved by Shareholders at the Annual General Meeting, be payable on 31 August 2006 to Shareholders on the register on 4 August 2006 (Provisional Ex-Dividend 2 August 2006). 3. Income 2006 2005 £'000 £'000 Income from investments UK dividend income 111 83 Overseas dividends 3,091 3,048 Scrip dividends 70 41 3,272 3,172 Other income Deposit interest 46 15 Stock lending income 27 1 73 16 Total income 3,345 3,188 4. The financial information for the year ended 30 April 2006 comprises non-statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 30 April 2005 has been abridged from the published accounts that have been delivered to the Register of Companies and restated where required as a result of the implementation of the new Financial Reporting Standards and on which the report of the auditors is unqualified and does not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. The statutory accounts for 2006 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Register of Companies in due course. 5. Copies of the Annual Report will be posted to all Shareholders in due course and further copies may be obtained from the Registered Office, One Bow Churchyard, Cheapside, London EC4M 9HH. Aberdeen Asset Management PLC Secretaries 21 July 2006 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Abrdn New Dawn Investment Trust (ABD)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today