Year End Results
Baillie Gifford Japan Trust PLC
28 September 2000
THE BAILLIE GIFFORD JAPAN TRUST PLC
RESULTS FOR THE YEAR TO 31 AUGUST 2000
SALIENT POINTS
NAV up 26.7% to 1,296.5p per share in the year to 31 August, compared with a
rise of 17.7% in the Company's benchmark index. The benchmark comprises a 75%
weighting in TOPIX and 25% weighting in the Tokyo Stock Exchange Second
Section Index (both indices expressed in sterling terms).
NAV fell 10.4% in the six months to 31 August, compared with a fall of 3.4% in
the Company's benchmark. This followed a strong performance in the first half
of the Company's year when NAV rose 41.4% to 1,447.0p per share against a rise
of 22.0% in the benchmark.
Share price increased by 42.6% in the year to 31 August. This was the highest
share price return within the AITC Japanese investment trust sector over one
year. The NAV return was the second highest in the sector.
Company benefited from significant 'New Japan' holdings over the first six
months. The Company has had large holdings in industries such as electronics
and communications, which have excellent growth prospects. However in recent
months the market has been particularly volatile and declining in such stocks.
Japanese corporate profits are rising strongly. The Company believes that
Japan's economy is recovering, which combined with rising profit forecasts
positions the market for a period of improved performance.
Annual continuation vote. The Board believes that the improved economic
conditions, combined with the Company's good performance are positive reasons
for the Company's continuation. The Directors will vote their shares
accordingly at the AGM on 24 November.
Share buy backs. The Board proposes to renew the Company's power to buy back
up to 14.99% of its shares at the AGM.
Stock split proposed to increase liquidity and marketability. The Board is
proposing that shares are split in the ratio of 5 new shares for each existing
share to reduce the nominal value per ordinary share from 25p to 5p.
Supporters of the AITC's 'its' campaign. The Baillie Gifford Japan Trust PLC
has contributed to the second year of 'its' and is increasing its marketing to
derive maximum spin-off advantage.
The Baillie Gifford Japan Trust PLC aims to pursue long term capital growth
principally through investment in medium and smaller sized Japanese companies.
The Company is managed by Baillie Gifford & Co., the leading independent
Edinburgh based fund management group with around £22 billion under management
and advice.
For further information please contact:
Sarah Whitley, Manager,
The Baillie Gifford Japan Trust PLC 0131 222 4000
Mike Lord, Director,
Broadgate Marketing 020 7726 6111
Baillie Gifford & Co. is regulated by IMRO.
THE BAILLIE GIFFORD JAPAN TRUST PLC
The following is the unaudited preliminary statement for the year to 31 August
2000 which was approved by the Board on 27 September 2000. The Board of The
Baillie Gifford Japan Trust PLC are recommending to the Annual General Meeting
of the Company to be held on 24 November 2000 that no dividend be paid for the
year ended 31 August 2000.
STATEMENT OF TOTAL RETURN
(unaudited and incorporating the revenue account*)
For the year ended 31 August 2000
==============================================================================
Revenue Capital Total
£'000 £'000 £'000
==============================================================================
Gains on investments - 38,925 38,925
Currency losses (note 1) - (2,524) (2,524)
Income 866 - 866
Investment management fee (1,751) - (1,751)
Other administrative expenses (227) - (227)
----------------------------------------
NET RETURN BEFORE FINANCE COSTS
AND TAXATION (1,112) 36,401 35,289
Finance costs of borrowings (360) - (360)
----------------------------------------
RETURN ON ORDINARY ACTIVITIES
BEFORE TAXATION (1,472) 36,401 34,929
Tax on ordinary activities (125) - (125)
----------------------------------------
RETURN ON ORDINARY ACTIVITIES
AFTER TAXATION (1,597) 36,401 34,804
========================================
TRANSFER (FROM)/TO RESERVES (1,597) 36,401 34,804
========================================
RETURN PER ORDINARY SHARE (note 3) (12.53p) 285.50p 272.97p
========================================
STATEMENT OF TOTAL RETURN
(incorporating the revenue account*)
For the year ended 31 August 1999
==============================================================================
Revenue Capital Total
£'000 £'000 £'000
==============================================================================
Gains on investments - 79,093 79,093
Currency losses (note 1) - (4,009) (4,009)
Income 1,149 - 1,149
Investment management fee (933) - (933)
Other administrative expenses (213) - (213)
----------------------------------------
NET RETURN BEFORE FINANCE COSTS
AND TAXATION 3 75,084 75,087
Finance costs of borrowings (243) - (243)
----------------------------------------
RETURN ON ORDINARY ACTIVITIES
BEFORE TAXATION (240) 75,084 74,844
Tax on ordinary activities (85) - (85)
----------------------------------------
RETURN ON ORDINARY ACTIVITIES
AFTER TAXATION (325) 75,084 74,759
========================================
TRANSFER (FROM)/TO RESERVES (325) 75,084 74,759
========================================
RETURN PER ORDINARY SHARE (note 3) (2.47p) 571.16p 568.69p
========================================
* The revenue column of this statement is the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
THE BAILLIE GIFFORD JAPAN TRUST PLC
SUMMARISED BALANCE SHEET
at 31 August 2000
(unaudited)
==============================================================================
31 AUGUST 2000 31 AUGUST 1999
£'000 £'000
==============================================================================
NET ASSETS
Listed overseas equities 165,805 139,230
Unlisted equities - traded on the
Japanese OTC market 14,347 15,386
---------------- --------------
Total fixed asset investments 180,152 154,616
Net liquid assets/(liabilities) 11,581 (857)
---------------- --------------
Total assets (before deduction of
bank loans) 191,733 153,759
Bank loans (note 4) (26,425) (23,255)
---------------- --------------
165,308 130,504
================ ==============
CAPITAL AND RESERVES
Called-up share capital 3,188 3,188
Capital reserves 167,380 130,979
Revenue reserve (5,260) (3,663)
---------------- --------------
EQUITY SHAREHOLDERS' FUNDS 165,308 130,504
================ ==============
NET ASSET VALUE PER ORDINARY SHARE 1,296.5p 1,023.6p
Ordinary shares in issue (note 5) 12,750,000 12,750,000
THE BAILLIE GIFFORD JAPAN TRUST PLC
TWENTY LARGEST EQUITY HOLDINGS
at 31 August 2000
==============================================================================
% OF
MARKET VALUE TOTAL
NAME BUSINESS £'000 ASSETS
==============================================================================
1. Rohm Specialist semiconductors 6,709 3.5
2. Kyocera Telecoms equipment and electronic 5,890 3.1
components
3. Fast Retailing Casual wear retailer 5,517 2.9
4. Nippon Broadcasting
System Radio and TV broadcasting 5,470 2.9
5. Sumitomo Bakelite Specialist electronic materials 5,453 2.8
6. Taiyo Yuden Capacitors and electronic parts 5,391 2.8
7. Promise Consumer finance 5,095 2.7
8. Yamatake
Corporation Control systems 5,093 2.7
9. Matsumotokiyoshi Pharmacy retail chain 4,950 2.6
10. DDI Telecom operator 4,873 2.5
11. Fanuc Robot and equipment manufacturer 4,860 2.5
12. Nichicon Capacitors 4,818 2.5
13. Chugai
Pharmaceutical Pharmaceutical manufacturer 4,653 2.5
14. Kobayashi
Pharmaceutical Household products 4,435 2.3
15. Minebea Miniature bearings 4,180 2.2
16. Takeda Chemical
Industries Pharmaceutical manufacturer 4,067 2.1
17. Takefuji Consumer finance 3,969 2.1
18. Murata
Manufacturing Electrical components 3,968 2.1
19. Capcom Games software 3,935 2.0
20. *H.I.S. Discount travel agency 3,921 2.0
-------- ------
97,247 50.8
======== ======
* denotes holding traded on the Japanese OTC market
THE BAILLIE GIFFORD JAPAN TRUST PLC
SUMMARISED CASH FLOW STATEMENT
(unaudited)
==============================================================================
YEAR TO YEAR TO
31 AUGUST 2000 31 AUGUST 1999
£'000 £'000 £'000 £'000
==============================================================================
NET CASH (OUTFLOW)/INFLOW FROM
OPERATING ACTIVITIES (1,067) 465
NET CASH OUTFLOW FROM SERVICING
OF FINANCE (356) (269)
TOTAL TAX PAID (23) (184)
FINANCIAL INVESTMENT
Acquisitions of investments (87,110) (48,812)
Disposals of investments 100,559 39,136
Realised currency gain 217 390
-------- --------
NET CASH INFLOW/(OUTFLOW) FROM
FINANCIAL INVESTMENT 13,666 (9,286)
-------- --------
NET CASH INFLOW/(OUTFLOW) BEFORE
FINANCING 12,220 (9,274)
FINANCING
Net proceeds from bank loans
drawn down 12 9,968
Shares repurchased (881) (2,650)
--------- --------
NET CASH (OUTFLOW)/INFLOW FROM
FINANCING (869) 7,318
-------- --------
INCREASE/(DECREASE) IN CASH 11,351 (1,956)
-------- --------
RECONCILIATION OF NET CASH FLOW
TO MOVEMENT IN NET DEBT
Increase/(decrease) in cash
in period 11,351 (1,956)
Net cash received from bank
loans drawn down (12) (9,968)
Exchange movement on bank loans (3,158) (3,982)
---------- --------
MOVEMENT IN NET DEBT IN THE
PERIOD 8,181 (15,906)
NET DEBT AT 1 SEPTEMBER 1999 (22,734) (6,828)
-------- --------
NET DEBT AT 31 AUGUST 2000 (14,553) (22,734)
======== ========
THE BAILLIE GIFFORD JAPAN TRUST PLC
NOTES
==============================================================================
31 AUGUST 2000 31 AUGUST 1999
£'000 £'000
==============================================================================
1.Currency losses
Realised exchange differences 646 (69)
Movement in unrealised exchange
differences (3,170) (3,940)
--------- ---------
(2,524) (4,009)
========= =========
2.No interim dividend will be declared.
3.Return per ordinary share
Revenue return (1,597) (325)
Capital return 36,401 75,084
Return per ordinary share is based on the above totals for revenue and
capital and on 12,750,000 (1999 - 13,146,027)ordinary shares, being the
weighted average number of ordinary shares in issue during the year.
4.Bank loans of £26.4 million (Y4.1 billion) have been drawn down under yen
loan facilities which are repayable between November 2000 and November 2001
(1999 - £23.3 million (Y4.1 billion)).
5.At the AGM in November 1999 authority was granted to the Company to buy back
1,911,225 ordinary shares (equivalent to 14.99% of its issued share capital
at that date). No ordinary shares were bought back in the year under
review and, therefore, at 31 August 2000 the Company's authority to buy back
its ordinary shares remained unchanged at 1,911,225 shares. During the year
to 31 August 1999 450,000 ordinary shares were bought back in accordance
with the authority granted at the AGM in November 1998.
6.The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 August 2000. The financial
information for 1999 is derived from the statutory accounts for 1999 which
have been delivered to the Registrar of Companies. The Auditors have
reported on the 1999 accounts, their report was unqualified and did not
contain a statement under section 237 (2) or (3) of the Companies Act 1985.
The statutory accounts for 2000 will be finalised on the basis of the
financial information presented in this preliminary announcement and will be
delivered to the Registrar of Companies following the Company's Annual
General Meeting.
Managers, Secretaries and Registered Office
Baillie Gifford & Co
1 Rutland Court
EDINBURGH
EH3 8EY
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