Final Results

Artemis Alpha Trust PLC 02 August 2004 ARTEMIS ALPHA TRUST PLC Advanced notification of Annual Unaudited Results for the year ended 30th April 2004 CHAIRMAN'S STATEMENT Introduction The last year has been one of considerable change for your Company. These changes began in May 2003, when a new investment objective and policy were adopted, together with the appointment of a new Investment Manager, Artemis Investment Management Limited. In August 2003, the Company's name was changed to Artemis Alpha Trust plc and in December 2003 some £19 million (before expenses) was raised following a successful placing and open offer. Your Board believes that your Company is now well positioned to seek an above average total return for its shareholders over the longer term. Performance I am pleased to report that, over the year to 30th April 2004, your Company's basic net asset value has performed strongly, rising by 84.7% (diluted: 80.1%). This compares favourably to the rise in the FTSE All-Share Index of 18.3% over the same period. The strong demand for, and subsequent re-rating of, your Company's shares, has resulted in a significant increase in their value of 152.7%, with the shares ending the year at 139 pence. Since the implementation of the changes in May 2003, the shares have moved from trading at a discount to net asset value of around 20% to a premium to net asset value of 8% at the year end. Your Company's performance reflects a general improvement in world stock markets over the year, with most now operating on a better footing than for some time. Notwithstanding, there remain a number of factors, both economic and political, which could have a de-stabilising effect on markets and the coming year should be viewed with a degree of caution. Results The total dividend for the year has been maintained at 2.0p. Your Board has declared a second interim dividend of 1.0p per ordinary share (in lieu of a final) which will be paid on 4th August 2004 to eligible shareholders on the register on 21st May 2004. Holders of the new ordinary shares, issued in December 2003, are not eligible for this dividend. However, all of your Company's shares now rank pari passu and will be eligible for future dividend payments. Shareholders & Investment Plan Your Board believes that investment trusts continue to be attractive investment vehicles for private investors. This has been recognised by our shareholders, the overwhelming majority of which are individuals rather than institutions. With demand remaining strong for your Company's shares, your Board has decided to establish an investment plan which will enable both existing shareholders and new investors to acquire shares in a cost-effective manner through regular savings or lump-sum investment. The arrangements are presently being finalised. Upon completion, full details will be circulated to shareholders. Corporate Governance The last year has seen further developments in corporate governance with the publication of a revised Combined Code. Your Board is eager to ensure that it has the appropriate procedures in place and is currently considering the new Combined Code, which is applicable to accounting periods commencing on or after 1st November 2003, together with the AITC's Code of Corporate Governance. Full details of your Board's corporate governance procedures are set out in the Annual Report and Accounts. Your Board and Annual General Meeting The composition of your Board has changed over the last year, with the appointment of myself, Andrew Dalrymple and Charles Peel. Margaret Simmons-Hodge retired at last year's Annual General Meeting and Peter Metcalfe and Andrew Greenwell will retire at this year's Annual General Meeting. I would like to record the Board's appreciation of their contribution over their period in office. Your Company's Annual General Meeting will be held at 42 Melville Street, Edinburgh EH3 7HA on 7th September 2004 at 12.30 pm. Full details of the business to be conducted at the meeting will be set out in a Circular to shareholders to be released shortly. You will have an opportunity at this meeting to ask questions of your Board and of the Manager. If you have any detailed or technical questions, you may wish to raise these in advance with the Company Secretary. I would encourage those shareholders who cannot attend the meeting to use their proxy votes. Simon Miller Chairman 2nd August 2004 Consolidated Statement of Total Return (incorporating the revenue account*) For the year ended 30th April 2004 2004 2003 Notes Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gain/(Losses) on - 11,643 11,643 - (3,903) (3,903) investments Exchange losses on - (83) (83) - (14) (14) capital items Loss on current asset (1) - (1) - - - investment Income 768 - 768 390 - 390 Investment Management (21) (190) (211) (14) (127) (141) fee Other expenses (260) (120) (380) (126) - (126) ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities before finance costs and 486 11,250 11,736 250 (4,044) (3,794) taxation Interest payable and (11) (102) (113) (7) (66) (73) similar charges ---------- ---------- ---------- ---------- ---------- ---------- Return on ordinary activities before taxation 475 11,148 11,623 243 (4,110) (3,867) Tax on ordinary (18) - (18) (21) - (21) activities ---------- ---------- ---------- ---------- ---------- ---------- Return on ordinary activities after taxation for the 457 11,148 11,605 222 (4,110) (3,888) financial year Dividends paid and (261) - (261) (261) - (261) proposed in respect of equity shares ----------- ----------- ----------- ----------- ----------- ----------- Transfer to/(from) 196 11,148 11,344 (39) (4,110) (4,149) reserves ----------- ----------- ----------- ----------- ----------- ----------- Return per ordinary 2 2.14p 52.17p 54.31p 1.70p (31.49)p (29.79)p share (basic) ----------- ------------ ------------ ----------- ------------ ------------ Return per ordinary 2 2.00p 48.82p 50.82p 1.70p (31.49)p (29.79)p share (diluted) ----------- ------------ ------------ ----------- ------------ ------------ *The revenue columns of this statement are the consolidated profit and loss accounts of the Group. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. Balance Sheets as at 30th April 2004 Group Group Company Company Notes 2004 2003 2004 2003 £'000 £'000 £'000 £'000 Fixed assets Investments 39,742 8,102 39,742 8,102 Current assets Investments 201 - - - Debtors 877 682 878 682 Cash at bank 4,795 999 4,795 999 --------------- ------------ --------------- ------------ 5,873 1,681 5,673 1,681 Creditors: amounts falling due (6,191) (677) (6,192) (678) within one year ------------- ------------- ------------- -------------- Net current (liabilities)/assets (318) 1,004 (519) 1,003 ---------------- ------------- ---------------- ------------- Total net assets 39,424 9,106 39,223 9,105 ---------------- ------------- ---------------- ------------- Capital and reserves Called up share capital 306 130 306 130 Share premium account 18,431 8,208 18,431 8,208 Capital redemption reserve 2 2 2 2 Warrant reserve 367 - 367 - Capital reserve - realised 4,655 1,577 4,655 1,577 Capital reserve - unrealised 7,228 (842) 7,228 (842) Special reserve 8,208 - 8,208 - Revenue reserve 227 31 26 30 --------------- ------------- -------------- -------------- Equity shareholders' funds 39,424 9,106 39,223 9,105 --------------- ------------- -------------- -------------- Net asset value per ordinary share 3 128.86p 69.78p (basic) --------------- -------------- Net asset value per ordinary share 3 125.65p 69.78p (diluted) --------------- -------------- The financial statements were approved by the Board of Directors on 2nd August 2004 and signed on its behalf by: Simon Miller Chairman Consolidated Statement of Cash Flows for the year ended 30th April 2004 2004 2003 £'000 £'000 Notes Operating activities Investment Income received 645 315 Deposit interest received 39 3 Underwriting commission received - 4 Investment Management fees paid (104) (155) Company secretarial fees paid (13) (13) Other cash payments (344) (114) Withholding tax recovered 16 20 ------------ ------------ Net cash inflow from operating activities 239 60 ------------ ------------ Servicing of finance Loan interest paid and other finance costs (102) (75) ------------ ------------ Net cash outflow from servicing of finance (102) (75) ------------ ------------ Capital expenditure and financial investment Purchases of investments (55,985) (4,148) Sales of investments 36,581 6,455 ------------ ----------- Net cash (outflow)/inflow from capital (19,404) 2,307 expenditure and financial investment ------------ ----------- Equity dividends paid (261) (238) ------------ ----------- Net cash (outflow)/inflow before financing (19,528) 2,054 ------------ ----------- Financing Amounts drawndown/repaid under revolving 4,350 (925) credit facility Issue of shares 19,000 385 Expenses of share issue (393) (38) Issue of warrants 367 - ----------- ----------- Net cash inflow/(outflow) from financing 23,324 (578) ----------- ----------- Increase in cash 3,796 1,476 ----------- ----------- The notes following form part of these financial statements. NOTES 1. Accounting policies The financial statements have been prepared in accordance with the historical cost convention as modified by the revaluation of fixed asset investments, and in accordance with applicable accounting standards and with the Statement of Recommended Practice regarding the Financial Statements of Investment Trust Companies issued in 2003 ('SORP'). 2. Return per ordinary share Revenue return per ordinary share is based on the net revenue on ordinary activities after tax of £457,000 (2003: £222,000) and on 21,368,106 (2003: 13,049,698) ordinary shares, being the weighted average number of ordinary shares in issue during the year. Capital return per ordinary share is based on net capital gains for the year of £11,148,000 (2003: losses of 4,110,000) and on 21,368,106 (2003: 13,049,698) ordinary shares, being the weighted average number of ordinary shares in issue during the year. The calculation of the diluted revenue and capital returns are carried out in accordance with Financial Reporting Standard No. 14 'Earnings per share'. For the purposes of calculating diluted revenue and capital returns per ordinary share, the number of ordinary shares is the weighted average used in the basic calculation plus the number of Ordinary shares deemed to be issued for no consideration on exercise of all Warrants. The calculations indicate that the exercise of Warrants would result in an increase in the weighted average number of ordinary shares of 1,468,091 (2003: nil) to 22,836,197 Ordinary shares. 3. Net asset value per ordinary share The basic net asset value per ordinary share is based on net assets of £39,424,000 (2003: £9,106,000) and on 30,593,452 (2003: 13,049,698) shares, being the number of ordinary shares in issue at the year-end. The diluted net asset value per ordinary share has been calculated on the assumption that the 2,609,939 Manager warrants (2003: nil) in issue were exercised on the first day of the financial year at 87.96 pence per share, resulting in a total of 33,203,391 ordinary shares (2003: 13,049,698). 4. 2004 accounts The figures and financial information for the year ended 30th April 2003 are extracted from the latest published accounts of the Company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not include a statement under either Section 237(2) or Section 237(3) of the Companies Act 1985. The figures and financial information for the year ended 30th April 2004 do not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. Statutory accounts for the year ended 30th April 2004 will be delivered to the Registrar of Companies in due course. 5. Dividend The Directors have declared a second interim dividend of 1.00 p per ordinary share (in lieu of a final dividend) which will be paid on 4th August 2004 to eligible shareholders on the register on 21st May 2004. Holders of the new ordinary shares, issued in December 2003, are not eligible for this dividend. All of the Company's shares now rank pari passu and will therefore be eligible for future dividend payments. 6. The Annual Report will be sent to shareholders in August 2004 and thereafter copies will be available from the registered office at 55 Moorgate, London EC2R 6PA. The Annual General Meeting of the Company will be held on 7th September 2004. For further information, please contact: Billy Aitken Artemis Investment Management Limited Tel: 0131 225 7300 BNP Paribas Secretarial Services Limited Tel: 020 7410 4942 Dated: 2 AUGUST 2004 This information is provided by RNS The company news service from the London Stock Exchange

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