Preliminary Annual Results
Aberdeen New Dawn Invest Trust PLC
04 July 2005
ABERDEEN NEW DAWN INVESTMENT TRUST PLC
PRELIMINARY ANNOUNCEMENT OF ANNUAL UNAUDITED RESULTS
for the year ended 30 April 2005
Chairman's Statement
Background and Results
In the year to 30 April 2005 the Company's net assets produced a total return of
9.3%, whilst the MSCI Asia Pacific (ex Japan) Index returned 13.2%. Over three
years the increase has been 33.6% compared to the benchmark of 20.7% for the
same period. We are proposing to increase the dividend by 32% for the year,
reflecting the strong dividend flow and return of surplus capital to
shareholders by companies in which we invest, which we are passing on to you.
The major event of the past year was the Tsunami earthquake at the end of 2004,
although the economic impact on the region has been less than first feared. The
recovery after the devastation I believe is symbolic of the work ethic and
resilience of the Asian countries involved and underlines our confidence in the
region to achieve above average economic growth.
Although performance for the region this year has been rather more subdued than
last year, we have not seen the materialisation of a hard economic landing in
China. Whilst China continues to excite investors, we remain cautious about
investing directly into the mainland given the general lack of transparency and
poor management. We have favoured gaining exposure by investing through Hong
Kong based companies with businesses in China. We also prefer the opportunities
to be found in India, with its higher standards of management, governance and
transparency.
The strongest performers in the year were Sri Lanka, Indonesia and Australia
which produced returns of 35.6%, 24.9% and 23.2% respectively. The laggards
were Malaysia and Taiwan which declined 2.60% and 5.41% respectively and in
which the portfolio has been underweight. The slight underperformance of the
Company this year has been caused by our underweight position in Australia,
which has performed strongly on the back of the resources boom. We are not
benchmark driven and believe Australia is expensive relative to the rest of the
region.
Dividend
The revenue account, as mentioned above, has performed strongly during the year,
gross income increasing by 33% over the previous year to £3,188,000. As a
result, the board is proposing a final dividend of 4.00p and a special dividend
of 1.00p, in order to ensure the Company maintains its investment trust status -
the Company has to distribute 85% of its income each year. The income position
has been enhanced by the receipt of £746,000 of special dividends as investee
companies have been distributing retained earnings. The willingness of investee
companies to return cash to investors is an indication of the health of these
businesses and the improvements in corporate governance in Asia. I remind
shareholders our investment policy focuses on capital growth rather than income,
but it is interesting to note that in the 16 years of our existence the dividend
has increased by 300%.
Gearing
The Company maintains a £12 million revolving credit facility. At the year end
£7.1m had been drawn down in Singapore and Hong Kong dollars and therefore the
Company had gearing of 9.3%. The Board keeps the gearing policy under regular
review and has given the Manager the flexibility to increase gearing up to a
maximum of 15%, although at the time of writing the gearing is similar to the
year end.
Share Issue
Over the reporting period the shares traded at a premium to the relevant NAV
during the first quarter of 2005, allowing the Company to issue 140,000 new
shares and raising an additional £0.5 million. We intend at the AGM to renew
the issuance authority and to issue shares if they trade at par or a premium to
the prevailing NAV. We are also seeking to renew the share buyback authority,
which may be utilised in the event the discount widens significantly and
persistently and would enhance the NAV and be in the best interests of
shareholders.
Outlook
It seems likely that this year Asian economies will slow and corporate earnings
growth will be just under 10.0% - more subdued than in the last two years as a
result of continuing question-marks over the US economy, persistently high oil
prices and wage increase pressures. The strong corporate balance sheets and
quality of managements in our companies, however, ought to enable them to
weather these conditions and I look forward to the longer term improvement of
growth and profitability being reflected in the assets of the Company.
Management
Finally, I would like to congratulate Aberdeen on being the first foreign fund
manager to be awarded a licence to operate in Malaysia. This demonstrates
Aberdeen's recognised success in and commitment to the Asian region, with the
team in Singapore now totalling over 70 people with additional offices in
Thailand and Hong Kong.
Richard Clough
Chairman
4 July 2005
Statement of Total Return
Year ended Year ended
30 April 2005 30 April 2004
(unaudited) (audited)
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 5,270 5,270 - 22,974 22,974
Income 3,188 - 3,188 2,404 - 2,404
Investment management fee (306) (306) (612) (275) (275) (550)
Administration expenses (428) - (428) (376) - (376)
Exchange (losses)/gains (18) 429 411 (51) 325 274
Net return before finance costs and taxation 2,436 5,393 7,829 1,702 23,024 24,726
Interest payable and similar charges (107) (107) (214) (74) (74) (148)
Net return on ordinary activities before taxation 2,329 5,286 7,615 1,628 22,950 24,578
Tax on ordinary activities (736) 124 (612) (504) (13) (517)
Net return on ordinary activities after taxation 1,593 5,410 7,003 1,124 22,937 24,061
Dividends in respect of equity shares (1,170) - (1,170) (884) - (884)
Transfer to reserves 423 5,410 5,833 240 22,937 23,177
Return per Ordinary share (pence): 6.84 23.22 30.06 4.83 98.58 103.41
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 2005 30 April 2004
(unaudited) (audited)
Notes £'000 £'000
Fixed assets
Listed investments 84,064 77,230
Current assets
Debtors 539 822
Cash at bank and in hand 871 1,216
1,410 2,038
Creditors: amounts falling due within one year
Foreign currency loans (7,054) (7,483)
Other creditors (1,846) (1,464)
(8,900) (8,947)
Net current liabilities (7,490) (6,909)
Total assets less current liabilities 76,574 70,321
Provision for liabilities and charges (149) (224)
Net assets 76,425 70,097
Share capital and reserves
Called-up share capital 5,852 5,817
Share premium account 9,777 9,317
Special reserve 14,138 14,138
Other reserves:
Redemption reserve 10,207 10,207
Capital reserve - realised 7,025 6,119
Capital reserve - unrealised 26,295 21,791
Revenue reserve 3,131 2,708
Equity Shareholders' funds 76,425 70,097
Net asset value per Ordinary share (pence): 326.50 301.27
Cash Flow Statement
Year ended Year ended
30 April 2005 30 April 2004
(unaudited) (audited)
£'000 £'000 £'000 £'000
Net cash inflow from operating activities 2,175 1,303
Servicing of finance
Bank and loan interest paid (209) (143)
Taxation
Net UK tax paid (212) (146)
Withholding tax recovered 1 7
Net tax paid (211) (139)
Financial investment
Purchases of investments (7,907) (9,795)
Sales of investments 6,262 6,252
Net cash outflow from financial investment (1,645) (3,543)
Equity dividend paid (884) (884)
Net cash outflow before financing (774) (3,406)
Financing
Issue of new shares 494 -
Drawdown of loans - 3,334
Net cash inflow from financing 494 3,334
Decrease in cash (280) (72)
Reconciliation of net cash flow to movements in net debt
Decrease in cash as above (280) (72)
Cash inflow from drawdown of loans - (3,334)
Change in net debt resulting from cash flows (280) (3,406)
Exchange movements 429 325
Movement in net debt in the year 149 (3,081)
Opening net debt (6,332) (3,251)
Closing net debt (6,183) (6,332)
Notes
1. Dividend
The Directors have today declared a final dividend of 4.00p per Ordinary share
and a special dividend of 1.00p per Ordinary share for the year ended 30 April
2005 (2004 - 3.80p). Both dividends will, if approved by Shareholders at the
Annual General Meeting, be payable on 24 August 2005 to Shareholders on the
register on 15 July 2005 (Provisional Ex-Dividend 13 July 2005).
2. Income
2005 2004
Income £'000 £'000
Income from investments
UK dividend income 83 75
Overseas dividends 3,048 2,303
Scrip dividends 41 9
3,172 2,387
Other income
Deposit interest 15 17
Stock lending income 1 -
16 17
Total income 3,188 2,404
3. Return per share
2005 2004
Revenue Capital Total Revenue Capital Total
p p p p p p
Ordinary 6.84 23.22 30.06 4.83 98.58 103.41
The revenue return per Ordinary share is based on net revenue on ordinary
activities after taxation of £1,593,000 (2004 - £1,124,000) and on 23,295,900
(2004 - 23,267,133) Ordinary shares, being the weighted average number of
Ordinary shares in issue during the year.
The capital return per Ordinary share is based on a net capital return for the
year of £5,410,000 (2004 - £22,937,000) and on 23,295,900 (2004 - 23,267,133)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the year.
4. Net asset value per share
The net asset value per share and the net asset values attributable to Ordinary
Shareholders at the year end calculated in accordance with the Articles of
Association were as follows:
Net asset value Net asset values
per share attributable
2005 2004 2005 2004
p p £'000 £'000
Ordinary shares 326.50 301.27 76,425 70,097
The movements during the year of the assets attributable to the Ordinary shares
were as follows:
2005 2004
£'000 £'000
Net assets attributable at 1 May 70,097 46,920
Capital return for the year 5,410 22,937
Revenue on ordinary activities after taxation 1,593 1,124
Dividends appropriated in the year (1,170) (884)
Shares issued during the year 495 -
Net assets attributable at 30 April 76,425 70,097
The net asset value per Ordinary share is based on net assets, and on 23,407,133
(2004 - 23,267,133) Ordinary shares, being the number of Ordinary shares in
issue at the year end.
5. The financial information for the year ended 30 April 2005 comprises
non-statutory accounts within the meaning of Section 240 of the Companies Act
1985. The financial information for the year ended 30 April 2004 has been
abridged from the published accounts that have been delivered to the Register of
Companies 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 2005 will be finalised on the basis of the financial
information presented by the Directors in this preliminary announcement and will
be delivered to the Registrar of Companies in due course.
6. 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
4 July 2005
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