Final Results

British Empire Sec & Gen Tst PLC 13 November 2006 BRITISH EMPIRE SECURITIES AND GENERAL TRUST plc Preliminary Announcement of Annual Results for the year ended 30 September 2006 • Net asset value ('NAV') on a total return basis increases by 14.3% • NAV outperforms MSCI World Index by 5.6 percentage points • Shares are at a premium of 3.5% to NAV at the year end Chairman's Statement The past year has been another good one for your Company and for the value of your investments. Our net asset value per share increased by 14.3% compared with an increase of 12.1% in our benchmark, the Datastream Global Growth Investment Trust Index, 8.7% in the MSCI World Index and 14.7% in the FTSE All Share Index, all on a total return basis. Over 3 years the net asset value total return per share has grown by 104.1% At the interim stage, we indicated our caution about market valuations and decided to bank some of the profits from well performing investments where we believed upsides were limited and the investment was trading closer to fair value. The market shake-out in May allowed us to use some of the liquidity to go back into the market for shares which we felt were again standing at discounts to valuation. Market levels are now close to their year's high and we have again been taking some profits, leading to a higher level of liquidity available for investment at the year end. Our income levels have remained strong as a combination of increasing dividends from our invested companies and income from our liquidity work their way straight through to our bottom line. As Shareholders know, we are obliged to pay a minimum of 85% of our net income to Shareholders by way of dividend if we are to retain our all-important investment trust status. In recent years the higher yields from our gilt investments have persuaded us to pay part of the dividend as a special dividend to reflect the possibility that, were we to become fully invested in equities again, yields on our portfolio might fall, leading to a possible reduction in our total dividends in future. On this basis we are this year again recommending a special dividend of 1.0p (2005: 1.4p) per share. In addition, your Directors, taking into account the favourable prospects for the longer term growth of dividends on our investments and the fact that our opening revenue reserves were strong, are recommending a final dividend of 3.2p per share (2005: 1.6p) which, together with the interim dividend of 0.8p (2005: 0.6p) brings the total ordinary and special dividends for the year to 5.0p, an increase of 39% on last year's total of 3.6p. These are our first full year accounts to be prepared under International Financial Reporting Standards. The move to bid pricing resulted in a reduction in the value of our investments of some 2p per share. Other than this and the requirement to show this year's final and special dividends in next year's accounts (which I am unconvinced adds to the clarity of our figures) there is little in the adoption of IFRS to bring to Shareholders' attention. However, the additional work, particularly on the transitional figures, has imposed considerable extra effort on our administrators, Phoenix Administration, our auditors and our audit committee and I am grateful to them all for rising to the challenge. Your Board has been strengthened this year with the appointment of Steve Bates who brings wide industry experience to our deliberations. As Chairman I feel we have the balance of the Board about right. All members make thoughtful and often incisive contributions to our discussions and I am grateful to them for the time and effort which they put into our meetings. The annual evaluation of our Board and its committees has very much supported my view. I very much hope that Shareholders will support the election of Steve Bates to the Board for the first time, together with the re-election of Strone Macpherson who retires this year in accordance with the Company's Articles of Association. In addition, having served for over ten years I am also standing for re-election. The Board does not believe that in an Investment Trust where experience of the investment cycle is essential to the Board's deliberations, length of service of itself should disqualify a Director. We do recognize the need, however, to refresh the Board periodically. John Pennink has again performed excellently in the management of your Company's investment portfolio. He has good touch, a deep understanding of what drives markets and a singular focus on finding value in markets which are ever better researched. Consequently we had no hesitation in renewing our management contract with Asset Value Investors. £1000 invested when John took over full time management of the portfolio four years ago would now be worth £2,912 while your dividends have increased from 1.70p per share to 5.0p per share - enough said. I commend the Investment Manager's Review for your reading. As Chairman I believe your Board's primary focus should be on the Company's investments and investment performance and so it is. Your Board also looks at wider areas of risk and reviews the policies on areas such as gearing, hedging and management of share premium or discount at least annually and more frequently if appropriate. Our shares have been trading at a premium throughout the year and we have considered whether to issue new shares into this market strength. Given our high levels of liquidity and the difficulty in finding new under-valued investments which meet our investment philosophy we decided not to undertake such issuance at the moment, but it remains open to us in the future. We also believe that the see-through discount on our equity portfolio is in excess of 10% which more than compensates for the premium on the shares. Your Board is also very conscious of its obligation to ensure that there are proper control systems in place to safeguard your funds. We have reviewed these systems and the performance of our service providers and consider that there are robust controls in place. There is further detail later in the Report. For the future we are remaining cautious. Interest rate tightening takes time to work its way through to the real economy and we at least are not clear that the full effects have yet been seen in the US and UK economies, or that policymakers' objectives have been met. The recent softening in the oil price is welcome both as a stimulus and in easing inflationary pressures. However, we believe that our investment philosophy of seeking out under-valued investments remains valid and we shall continue to invest in line with that philosophy as opportunities arise. Our marketing over the past three years has been targeted towards increasing our individual Shareholder base and I am delighted that private Shareholders now account for over 50% of the ownership of the Company. The Directors would like to invite all Shareholders to a buffet lunch after the AGM. If you would like to attend please reply on the enclosed card. I look forward to renewing my acquaintance with many of you then and to welcoming some of our many new Shareholders to the meeting. Iain Samuel Robertson CBE Chairman 13 November 2006 Unaudited Consolidated Income Statement of the Group for the year ended 30 September 2006 Income 2006 2006 2006 2005 2005 2005 Revenue Capital Total Revenue Capital Total return return return return £'000 £'000 £'000 £'000 £'000 £'000 Investment income 16,626 - 16,626 13,110 - 13,110 Gains on investments held at fair - 85,053 85,053 - 188,196 188,196 value Losses on Index Stock - (7) (7) - (764) (764) Gains on forward sales of Euro - - - - 1,221 1,221 Realised exchange losses - (2,343) (2,343) - (610) (610) 16,626 82,703 99,329 13,110 188,043 201,153 Expenses Investment management fee (including irrecoverable VAT) (2,006) (3,685) (5,691) (1,404) (3,265) (4,669) Other expenses (including irrecoverable VAT) (1,221) - (1,221) (1,147) - (1,147) Profits before finance costs and 13,399 79,018 92,417 10,559 184,778 195,337 tax Finance costs (2,391) (8) (2,399) (2,361) (7) (2,368) Profit before tax 11,008 79,010 90,018 8,198 184,771 192,969 Taxation (2,488) 1,105 (1,383) (1,584) 922 (662) Profit for the period 8,520 80,115 88,635 6,614 185,693 192,307 Earnings per ordinary share Basic - ordinary shares (see note 5.32p 50.05p 55.37p 4.13p 116.00p 120.13p 3) The total column of this statement represents the Group's Income Statement, prepared in accordance with IFRS. The revenue return and capital return columns are supplementary to this and are prepared under the guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations. All income is attributable to the equity holders of British Empire Securities and General Trust plc. There are no minority interests. The accompanying notes are an integral part of the financial statements. Unaudited Consolidated and Company Statements of Changes in Equity for the year ended 30 September 2006 Ordinary Capital Share Capital Capital Merger Revenue Total share redemption premium reserve reserve reserve reserve capital reserve realised unrealised £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Group For the year to 30 September 2005 Restated (see note 7(a) ) Balance at 30 16,008 2,927 28,078 246,363 82,214 41,406 12,478 429,474 September 2004 Profit for the - - - 105,491 80,202 - 6,614 192,307 period Ordinary - - - - - - (3,042) (3,042) dividends paid Balance as at 30 16,008 2,927 28,078 351,854 162,416 41,406 16,050 618,739 September 2005 For the year to 30 September 2006 Balance at 30 16,008 2,927 28,078 351,854 162,416 41,406 16,050 618,739 September 2005 Profit for the - - - 144,369 (64,254) - 8,520 88,635 period Ordinary - - - - - - (3,842) (3,842) dividends paid Special dividend - - - - - - (2,241) (2,241) paid Balance as at 30 16,008 2,927 28,078 496,223 98,162 41,406 18,487 701,291 September 2006 Company For the year to 30 September 2005 Restated (see note 7(a)) Balance at 30 16,008 2,927 28,078 246,363 83,999 41,406 10,693 429,474 September 2004 Profit for the - - - 105,491 80,201 - 6,615 192,307 period Ordinary - - - - - - (3,042) (3,042) dividends paid Balance as at 30 16,008 2,927 28,078 351,854 164,200 41,406 14,266 618,739 September 2005 For the year to 30 September 2006 Balance at 30 16,008 2,927 28,078 351,854 164,200 41,406 14,266 618,739 September 2005 Profit for the - - - 144,369 (64,256) - 8,522 88,635 period Ordinary - - - - - - (3,842) (3,842) dividends paid Special dividend - - - - - - (2,241) (2,241) paid Balance as at 16,008 2,927 28,078 496,223 99,944 41,406 16,705 701,291 30 September 2006 Unaudited Consolidated and Company Balance Sheets as at 30 September 2006 Company Group Restated Restated (see note 7(a)) (see note 7(a)) 2006 2005 2006 2005 £'000 £'000 £'000 £'000 Non-current assets Investments held at fair value through 733,205 651,258 731,173 649,224 profit or loss Current assets Investments - - 5 5 Sales for future settlement 1,738 2,426 1,738 2,426 Other receivables 3,586 2,893 3,586 2,893 Cash and cash equivalents 9,242 2,404 9,245 2,410 14,566 7,723 14,574 7,734 Total assets 747,771 658,981 745,747 656,958 Current liabilities Purchases for future settlement (9,423) (3,754) (9,423) (3,754) Other payables (5,827) (5,255) (3,803) (3,232) (15,250) (9,009) (13,226) (6,986) Total assets less current liabilities 732,521 649,972 732,521 649,972 Non-current liabilities 103/8 per cent Debenture Stock 2011 (8,515) (8,515) (8,515) (8,515) 81/8 per cent Debenture Stock 2023 (14,879) (14,871) (14,879) (14,871) Index Stock (7,518) (7,702) (7,518) (7,702) Provision for deferred tax (318) (145) (318) (145) Net assets 701,291 618,739 701,291 618,739 Equity attributable to equity Shareholders Ordinary share capital 16,008 16,008 16,008 16,008 Capital redemption reserve 2,927 2,927 2,927 2,927 Share premium 28,078 28,078 28,078 28,078 Capital reserve realised 496,223 351,854 496,223 351,854 Capital reserve unrealised 99,944 164,200 98,162 162,416 Merger reserve 41,406 41,406 41,406 41,406 Revenue reserve 16,705 14,266 18,487 16,050 Total equity (see note 4) 701,291 618,739 701,291 618,739 Net asset value per ordinary share - 438.08p 386.51p 438.08p 386.51p basic (see note 4) Number of shares in issue 160,080,089 160,080,089 160,080,089 160,080,089 Unaudited Consolidated and Company Cash Flow Statements for the year ended 30 September 2006 Company Group Restated Restated (see note 7 (see note 7 (c)) (c)) 2006 2005 2006 2005 £'000 £'000 £'000 £'000 Net cash inflow from operating activities (see 15,455 6,348 15,452 6,352 below) Financing activities Dividends paid (6,083) (3,042) (6,083) (3,042) Buyback of Equity Index Stock (191) (348) (191) (348) Cash outflow from financing activities (6,274) (3,390) (6,274) (3,390) Increase in cash and cash equivalents 9,181 2,958 9,178 2,962 Exchange movements (2,343) (610) (2,343) (610) Change in cash and cash equivalents 6,838 2,348 6,835 2,352 Cash and cash equivalents at beginning of year 2,404 56 2,410 58 Cash and cash equivalents at end of year 9,242 2,404 9,245 2,410 (see note 5) Reconciliation of profit before taxation to net cash inflow from operating activities Profit before taxation 90,018 192,969 90,018 192,969 Losses on Index Stock held at fair value 7 764 7 764 Profits on forward currency contracts - (1,221) - (1,221) Losses on exchange movements 2,343 610 2,343 610 Gains on investments held at fair value through (85,051) (188,196) (85,053) (188,196) profit or loss Purchases of investments (553,088) (420,652) (553,088) (420,652) Sales of investments 562,549 421,682 562,549 421,682 Net proceeds from forward currency contracts - 1,221 - 1,221 Increase in other receivables (590) (1,027) (590) (1,028) Increase in creditors 13 694 13 694 Taxation (754) (503) (754) (498) Amortisation of Debenture issue expenses 8 7 8 7 Decrease in value on investments - current - - 1 - assets Purchase of investments - current assets - - (2) - Net cash inflow from operating activities 15,455 6,348 15,452 6,352 Notes to the Accounts 1. Accounting policies The financial statements of the Group and the Company have been prepared in accordance with International Financial Reporting Standards ('IFRS'). These comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee ('IASC') that remain in effect, to the extent that IFRS have been adopted by the European Union. During the year the IASB issued IFRIC10 Interim Financial Reporting and Impairment Standard (effective 1 November 2006) and IFRS7 Financial Instruments: Disclosures (effective 1 January 2007). The Directors do not anticipate that the adoption of these Standards will have a material impact on the financial statements in the period of initial application. The functional currency of the Group is pounds sterling because this is the currency of the primary economic environment in which the Group operates. The financial statements are also presented in pounds sterling. (a) Basis of preparation The principal accounting policies adopted are set out below. Where presentational guidance set out in the Statement of Recommended Practice ('the SORP') for investment trusts issued by the Association of Investment Companies ('the AIC') in January 2003 (revised in December 2005) is consistent with the requirements of IFRS, the directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP. (b) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiary) made up to 30 September each year. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation. (c) Presentation of Income Statement In order to reflect better the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. In accordance with the Company's status as a UK investment company under section 266 of the Companies Act 1985, net capital returns may not be distributed by way of dividend. Additionally, the net revenue is the measure the directors believe appropriate in assessing the Company's compliance with certain requirements set out in section 842 of the Income and Corporation Taxes Act 1988. (d) Income Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Where an ex-dividend date is not available, dividends received on or before the year end are treated as revenue for the year. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that discounts estimated future cash receipts through the expected life of the financial asset to the asset's net carrying amount. Interest receivable from cash and short term deposits is accrued to the end of the year. (e) Expenses All expenses and interest payable are accounted for on an accruals basis. Expenses have been treated as revenue except as follows: • The base management fee of 0.30% has been treated as revenue. The remainder of the base management fee at the rate of 0.25% (or 0.30% if the Company out-performs its benchmark index or under-performs by no more than 5%) together with the performance element of the management fee are charged to capital; • expenses which are incidental to the purchase or sale of an investment are recognised within the Income Statement as a capital item; • expenses are presented as capital where a connection with the maintenance or enhancement of the value of investments can be demonstrated. (f) Taxation The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from profit before tax as reported in the Income Statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that were enacted or substantively enacted by the balance sheet date. In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented against capital returns in the supplementary information in the Income Statement is the 'marginal basis'. Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return column of the Income Statement, then no tax relief is transferred to the capital return column. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax is charged or credited in the Income Statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with within equity. Investment trusts which have approval as such under section 842 of the Income and Corporation Taxes Act 1988 are not liable for taxation on capital gains. (g) Investments held at fair value through profit or loss When a purchase or sale is made under a contract, the terms of which require delivery within the timeframe of the relevant market, the investments concerned are recognised or derecognised on the trade date. In accordance with IFRS recognition and measurement principles all the Group's investments are classified as investments designated at fair value through profit or loss and are described in these financial statements as investments held at fair value. All investments are designated as held at fair value upon initial recognition and are measured at subsequent reporting dates at fair value, which is either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted. Fair values for unquoted investments, or investments for which the market is inactive, are established by using various valuation techniques. These may include recent arm's length market transactions, the current fair value of another instrument which is substantially the same, discounted cash flow analysis and option pricing models. Where there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, that technique is utilised. Where no reliable fair value can be estimated for such instruments, they are carried at cost subject to any provision for impairment. Investments held by the subsidiary undertaking are classified as 'held for trading' and are valued at fair value in accordance with the policies above for listed and unlisted holdings. Profits or losses on investments 'held for trading' are taken to revenue. Foreign exchange gains and losses for fair value through profit or loss investments are included within the changes in its fair value. (h) Movements in fair value Changes in fair value of not held for trading investments are recognised in the Income Statement as a capital item. On disposal, realised gains and losses are also recognised in the Income Statement as capital items. (i) Cash and cash equivalents Cash comprises cash in hand and at bank and short-term deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. (j) Dividends payable Interim and final dividends are recognised in the period in which they are paid. (k) Foreign currency translation Transactions in currencies other than sterling are recorded at the rates of exchange prevailing on the date of the transaction. At each balance sheet date, monetary items that are fair valued and are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Foreign exchange differences arising on translation are recognised in the Income Statement. (l) Equities Index Unsecured Loan Stock 2013 In accordance with the IFRS recognition and measurement principles the Equities Index Unsecured Loan Stock 2013 is classified as a financial liability designated at fair value through profit or loss and is valued at the closing offer price. Changes in its fair value are recognised in the Income Statement as a capital item. On cancellation, realised gains and losses are also recognised through the Income Statement as capital items. Prior to the adoption of IFRS the capital value was determined by reference to the level of the FTSE All-Share Index at the close of business. Interest paid on the Index Stock is charged to the Income Statement as a revenue item. (m) Finance costs Finance costs are accounted for on an accruals basis and are recognised through the Income Statement as revenue items. This does not comply with the Statement of Recommended Practice for Financial Statements of Investment Trust Companies, which would require the finance costs of the Debenture Stocks and the Index Stock to be allocated between revenue and capital in the same proportions as the Management Fee. However, the Directors consider that the treatment adopted, which is consistent with previous years, is the most appropriate given the liquidity of the Company and the nature of the Index Stock. (n) Debenture pricing The 81/8 per cent Debenture Stock 2023 and 103/8 per cent Debenture Stock 2011 are valued at par and secured by a floating charge over all assets of the Company. Costs in relation to arranging the debt finance of the 81/8 per cent Debenture Stock 2023 have been capitalised and are amortised over the term of the finance. 2. Dividends 2006 2005 £'000 £'000 Amounts recognised as distributions to equity holders in the year: Final dividend for the year ended 30 September 2005 of 1.60p (2004 - 1.30p) per 2,561 2,081 Ordinary Share Special dividend for the year ended 30 September 2005 of 1.40p (2004 - nil) per 2,241 - Ordinary Share Interim dividend for the year ended 30 September 2006 of 0.80p (2005 - 0.60p) per 1,281 961 Ordinary Share 6,083 3,042 Set out below is the final and special dividend proposed on Ordinary Shares in respect of the financial year, which is the basis on which the requirements of section 842 of the Income and Corporation Taxes Act 1998 are considered. Interim dividend for the year ended 30 September 2006 of 0.80p (2005 - 0.60p) per 1,281 961 Ordinary Share Proposed final dividend for the year ended 30 September 2006 of 3.20p (2005 - 5,122 2,561 1.60p) per Ordinary Share Proposed special dividend for the year ended 30 September 2006 of 1.00p (2005 - 1,601 2,241 1.40p) per Ordinary Share 8,004 5,763 International Accounting Standard (IAS) 10 'Events after the Balance Sheet date' requires dividends to be recognised in the period in which they are paid. 3. Earnings per Ordinary Share 2006 2006 2006 2005 2005 2005 Revenue Capital Total Revenue Capital Total Basic 5.32p 50.05p 55.37p 4.13p 116.00p 120.13p The total basic earnings per Ordinary Share is based on Group net gains for the financial year of £88,635,000 (2005: £192,307,000 as restated) and on 160,080,089 (2005: 160,080,089) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the year. The total basic earnings per Ordinary Share figures detailed above can be further analysed between revenue and capital, as below. The basic revenue earnings per Ordinary Share is based on Group revenue after taxation for the financial year of £8,520,000 (2005: £6,614,000) and on 160,080,089 (2005: 160,080,089) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the year. The basic capital earnings per Ordinary Share is based on Group net gains for the financial year of £80,115,000 (2005: £185,693,000 as restated) and on 160,080,089 (2005: 160,080,089) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the year. 4. Net asset value The net asset value per share and the net asset value attributable to the Ordinary Shares at the year end are calculated in accordance with their entitlements in the Articles of Association and were as follows: Net asset values Net asset values attributable attributable Company Group Restated Restated (see note 7(a)) (see note 7(a)) 2006 2005 2006 2005 p p p p Ordinary Shares 438.08 386.51 438.08 386.51 (basic) Net asset values Net asset values attributable attributable Company Group Restated Restated (see note7(a)) (see note 7(a)) 2006 2005 2006 2005 £'000 £'000 £'000 £'000 Ordinary Shares 701,291 618,739 701,291 618,739 (basic) The movement during the year of the Group assets attributable to the Ordinary Shares were as follows: 2006 2005 Ordinary shares (basic) Ordinary shares (basic) £'000 £'000 Total net assets attributable at beginning of year (as restated - 618,739 429,474 see notes 6 and 7(a)) Total profit for the year 88,635 192,307 Dividends appropriated in the year (6,083) (3,042) Net assets attributable at end of year 701,291 618,739 Basic net asset value per Ordinary Share is based on net assets and on 160,080,089 (2005: 160,080,089) Ordinary Shares being the number of Ordinary Shares in issue at the year end. At the year end the net asset value per share adjusted to include the Debenture Stocks at market value rather than par was 433.66p (2005: 381.78p as restated). 5. Analysis of cash and cash equivalents at end of year At 1 October 2005 Cash flow Exchange At 30 September 2006 movement £'000 £'000 £'000 £'000 Group Cash at bank and on deposit 2,410 9,178 (2,343) 9,245 Company Cash at bank and on deposit 2,404 9,181 (2,343) 9,242 6. Restatement of opening balances as at 30 September 2004 At 1 October 2005 the Company adopted International Financial Reporting Standards. In accordance with IFRS 1 (First Time Adoption of International Financial Reporting Standards) the following is a reconciliation of the balances as at 30 September 2004 previously reported under the applicable UK Accounting Standards and with the SORP to the restated IFRS results. Previously Effect of Restated reported transition to 30 September 30 September IFRS 2004 2004 Notes (£'000) (£'000) (£'000) Group Investments 1 461,541 (3,377) 458,164 Current assets 4,714 - 4,714 Creditors: amounts falling due within one year 2 (4,820) 2,081 (2,739) Total assets less current liabilities 3 461,435 (1,296) 460,139 Creditors: amounts falling due after more than (30,334) (331) (30,665) one year Net assets 431,101 (1,627) 429,474 Capital and reserves Called up Ordinary share capital 16,008 - 16,008 Capital redemption reserve 2,927 - 2,927 Share premium 28,078 - 28,078 Capital reserve - realised 246,363 - 246,363 Capital reserve - unrealised 1,3 85,922 (3,708) 82,214 Merger reserve 41,406 - 41,406 Revenue reserve 2 2,081 12,478 10,397 Total equity 431,101 (1,627) 429,474 Net asset value per Ordinary Share - Basic 269.30p (1.02)p 268.28p Company Investments 1 463,576 (3,377) 460,199 Current assets 4,702 - 4,702 Creditors: amounts falling due within one year 2 (6,843) 2,081 (4,762) Total assets less current liabilities 461,435 (1,296) 460,139 Creditors: amounts falling due after more than 3 (30,334) (331) (30,665) one year Net assets 431,101 (1,627) 429,474 Capital and reserves Called up Ordinary share capital 16,008 - 16,008 Capital redemption reserve 2,927 - 2,927 Share premium 28,078 - 28,078 Capital reserve - realised 246,363 (3,708) 246,363 Capital reserve - unrealised 1,3 87,707 - 83,999 Merger reserve 41,406 2,081 41,406 Revenue reserve 2 8,612 - 10,693 Total equity 431,101 (1,627) 429,474 Net asset value per Ordinary Share - Basic 269.30p (1.02)p 268.28p Notes to the reconciliation 1. Investments are designated as held at fair value through profit or loss under IFRS and are carried at bid prices which total £458,164,000 for the Group and £460,199,000 for the Company. They were carried at mid prices previously under UK GAAP. The aggregate differences, being a revaluation downwards of £3,377,000 also decreased Capital reserve - unrealised. 2. No provision has been made for the final dividend on the Ordinary Shares for the year ended 30 September 2004 of £2,081,000. Under IFRS, the final dividend is not recognised until paid. 3. The Equities Index Unsecured Loan Stock 2013 is designated as held at fair value through profit or loss under IFRS and carried at the offer price with a fair value of £7,286,000. Previously the capital value was determined by reference to the level of the FTSE All-Share Index. The difference, being a revaluation downwards of £331,000 also decreased Capital reserve - unrealised. 7. (a) Restatement of opening balances as at 30 September 2005 At 1 October 2005 the Company adopted International Financial Reporting Standards. In accordance with IFRS 1 (First Time Adoption of International Financial Reporting Standards) the following is a reconciliation of the balances as at 30 September 2005 previously reported under the applicable UK Accounting Standards and with the SORP to the restated IFRS results. Previously Effect of Restated 30 reported 30 transition to September 2005 September IFRS 2005 Notes (£'000) (£'000) (£'000) Group Investments 1 652,456 (3,232) 649,224 Current assets 7,734 - 7,734 Creditors: amounts falling due within one year 2 (11,788) 4,802 (6,986) Total assets less current liabilities 648,402 1,570 649,972 Creditors: amounts falling due after more than 3 (31,366) 278 (31,088) one year Provision for deferred tax (145) - (145) Net assets 616,891 1,848 618,739 Capital and reserves Called up Ordinary share capital 16,008 - 16,008 Capital redemption reserve 2,927 - 2,927 Share premium 28,078 - 28,078 Capital reserve - realised 351,854 - 351,854 Capital reserve - unrealised 1,3 165,370 (2,954) 162,416 Merger reserve 41,406 - 41,406 Revenue reserve 2 4,802 16,050 11,248 Total equity 616,891 1,848 618,739 Net asset value per Ordinary Share - Basic 385.36p 1.15p 386.51p Company Investments 1 654,490 (3,232) 651,258 Current assets 7,723 - 7,723 Creditors: amounts falling due within one year 2 (13,811) 4,802 (9,009) Total assets less current liabilities 648,402 1,570 649,972 Creditors: amounts falling due after more than 3 (31,366) 278 (31,088) one year Provision for deferred tax (145) - (145) Net assets 616,891 1,848 618,739 Capital and reserves Called up Ordinary share capital 16,008 - 16,008 Capital redemption reserve 2,927 - 2,927 Share premium 28,078 - 28,078 Capital reserve - realised 351,854 - 351,854 Capital reserve - unrealised 1,3 167,154 (2,954) 164,200 Merger reserve 41,406 - 41,406 Revenue reserve 2 4,802 14,266 9,464 Total equity 616,891 1,848 618,739 Net asset value per Ordinary Share - Basic 385.36p 1.15p 386.51p Notes to the reconciliation 1. Investments are designated as held at fair value through profit or loss under IFRS and are carried at bid prices which total £649,224,000 for the Group and £651,258,000 for the Company. They were carried at mid prices previously under UK GAAP. The aggregate differences, being a revaluation downwards of £3,232,000 also decreased Capital reserve - unrealised. 2. No provision has been made for the final ordinary and special dividends on the Ordinary Shares for the year ended 30 September 2005 of £2,561,000 and £2,241,000 respectively. Under IFRS, the final ordinary and special dividends are not recognised until paid. 3. The Equities Index Unsecured Loan Stock 2013 is designated as held at fair value through profit or loss under IFRS and carried at the offer price with a fair value of £7,702,000. Previously the capital value was determined by reference to the level of the FTSE All-Share Index. The difference, being a revaluation upwards of £278,000 also increased Capital reserve - unrealised. 7. (b) Reconciliation of the Consolidated Statement of Total Return to the Consolidated Income Statement for the year ended 30 September 2005 Under IFRS the Income Statement is the equivalent of the Statement of Total Return reported previously. Group Notes £'000 Basic EPS impact pence Total transfer to reserves per the Statement of Total 185,790 - Return Add back dividends paid and proposed 1 5,763 - Investments held at fair value changed from mid to 2 3,377 2.11 bid basis at 30 September 2004 Investments held at fair value changed from mid to 2 (3,232) (2.02) bid basis at 30 September 2005 Equity Index Stock held at fair value changed from 3 331 0.21 Index value to offer basis at 30 September 2004 Equity Index Stock held at fair value changed from 3 278 0.17 Index value to offer basis at 30 September 2005 Net profit per the Income Statement 192,307 0.47 Notes to the reconciliation 1. Interim, final and special ordinary dividends declared and paid during the period are dealt with through the Statement of Changes in Equity. 2. The portfolio valuations at 30 September 2004 and 30 September 2005 are required to be valued at fair value under IFRS. These values are lower than the previous valuations by £3,377,000 and £3,232,000 respectively. 3. The Equity Index Stock valuation at 30 September 2004 and 30 September 2005 is required to be valued at fair value under IFRS. The value at 30 September 2004 is lower than the previous valuation by £331,000 and the value at 30 September 2005 is higher than the previous valuation by £278,000. 7. (c) Reconciliation of the Cash Flow Statements for the year ended 30 September 2005 Previously Effect of Adjusted cash flows reported cash transition to flows IFRS Notes £'000 £'000 £'000 Group Net cash inflow from operating 1 6,339 13 6,352 activities Servicing of finance 1 (2,357) 2,357 - Taxation 1 119 (119) - Capital expenditure financial 2,251 (2,251) - investment Equity dividends paid 2 (3,042) 3,042 - Net cash inflow before financing 3,310 3,042 6,352 Financing 2 (348) (3,042) (3,390) Increase in cash and cash 2,962 - 2,962 equivalents Company Net cash inflow from operating 1 6,335 13 6,348 activities Servicing of finance 1 (2,357) 2,357 - Taxation 1 119 (119) - Capital expenditure financial 2,251 (2,251) - investment Equity dividends paid 2 (3,042) 3,042 - Net cash inflow before financing 3,306 3,042 6,348 Financing 2 (348) (3,042) (3,390) Increase in cash and cash 2,958 - 2,958 equivalents Notes to the reconciliation 1. Bank interest, debenture interest, Equity Index Stock interest, taxation and capital expenditure and financial investment have now been analysed within operating activities. 2. Ordinary dividends paid are now analysed within financing. 8. The financial information set out in the announcement does not constitute the Company's statutory accounts for the years ended 30 September 2006 or 2005. The financial information for the year ended 30 September 2005 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under s237 (2) or (3) of the Companies Act 1985. The statutory accounts for the year ended 30 September 2006 will be finalised on the basis of the financial information presented by the Directors in the preliminary announcement, will be audited and delivered to the Registrar of Companies in due course. The preliminary announcement is not prepared on the same basis as set out in the previous year's annual accounts due to the adoption of IFRS as detailed in Notes 6 and 7. This preliminary announcement was approved by the Board of Directors on 13 November 2006. 9. Copies of the Annual Report will be posted to shareholders in due course and further copies may be obtained from the Registered Office, Bennet House, 54 St James's Street, London SW1A 1JT. The Annual General Meeting will be held at 12 noon on Thursday 14 December 2006. Phoenix Administration Services Limited Company Secretary 13 November 2006 This information is provided by RNS The company news service from the London Stock Exchange

Companies

AVI Global Trust (AGT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today