Interim Results
Bankers Investment Trust PLC
22 June 2001
HENDERSON GLOBAL INVESTORS
THE BANKERS INVESTMENT TRUST PLC
EMBARGOED FOR RELEASE ON FRIDAY 22 JUNE 2001 AT 7.00 AM
21 June 2001
THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
HIGHLIGHTS
* Net asset value per share down by 0.8%, as compared to a fall of
6.8% in the FTSE All-Share Index
* Second interim dividend of 1.64p net per ordinary share (2000:
1.55p)
Extracts from the Chairman's Statement
Assets
It has been a difficult six months for world equity markets but I am pleased
to report that our net asset value suffered only a marginal decline of 0.8%
compared with a fall of 6.8% for the FTSE All-Share Index. Equity markets have
been impacted by the abrupt slowdown in the US economy, a squeeze on
profitability and a further de-rating of new economy stocks. Our asset
performance was helped by heavier weightings towards the UK and Europe where
the markets were more resilient than the USA. Currency movements had a
positive impact with the euro and the US dollar rising against sterling by 6%
and 1.5% respectively. It is gratifying to report that both asset allocation
and stock selection all added to performance and the only region where our
investments underperformed the relevant index was in North America.
Share Buy-backs
During the half year we purchased 14.6 million of our own shares at an average
price of 322p and an average discount of 10.5%. The total cost of the
buy-backs was £47.0m, of which £23m was raised through net sales of
investments and the balance was funded by cash resources, which raised our
effective gearing to a current level of 8%. These buy-backs, amounting to
10.4% of our issued capital enhanced net assets per share by 4.1p equivalent
to £5.1m. The authority to buy-back a further 14.99% of our issued capital was
approved at the AGM in February. These powers will be used, when appropriate,
to enhance assets and earnings and to reduce discount volatility.
Earnings and Dividends
Earnings per share increased by 9.4%, assisted by strong growth in final
dividends from the UK, three special dividends, and the benefit of buying back
shares, cum the final dividend. Earnings in the second half will not be so
robust but the outlook for our total earnings is that they should exceed the
minimum forecast total dividend of 6.56p per share, itself an increase of 3.3%
over last year.
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
Outlook
Since 3 January, the Federal Reserve Board has cut short term US interest
rates from 61/2% to 4%. This significant easing of monetary conditions
together with US$ 100 billion of tax cuts shows the determination of the US
authorities to do all in their power to avoid a recession. Fortunately
American consumers continue to hold their nerve and with house prices
remaining firm there is reason to hope that the current measures will succeed.
In the UK interest rates have been cut to 51/4%. Despite weakness in
manufacturing and the economic impact of foot and mouth disease, consumer
spending is buoyant which together with the promise of significant capital
expenditure by the newly re-elected Labour government may cause strains in an
economy which is currently short of skilled labour. Continental Europe
continues to disappoint on the economic front particularly Germany; however,
the current weakness of the euro continues to enhance the competitive position
for exporters. Japan has become a real concern. Continuing deflation of 2% and
a fall in manufacturing output has put further pressure on employment growth
and with the government unable to cut taxes and interest rates any further
there is a considerable risk that the Japanese economy could continue to
deteriorate.
There are risks, but I remain optimistic that the global economy will
gradually recover next year though the pace of recovery may prove
disappointing to some. I am hopeful that equities will start to reflect a
better outlook possibly from the last quarter of the year 2001.
For further information contact:
Michael Moule
The Bankers Investment Trust PLC
Tel: 020 7410 4100
Stephen Westwood
Head of Investment Trusts
Tel: 020 7477 5517
Vicki Staveacre
Henderson Press Office
Tel: 020 7410 4028
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
HIGHLIGHTS
(Unaudited) (Audited) %
30 April 31 October Change
2001 2000
Assets
Total assets less current liabilities £479,843,000 £536,360,000 -10.5
Net asset value per ordinary share 357.2p 360.1p -0.8
Ordinary share mid-market price 320.5p 309.5p +3.6
Discount (Share Price to Net Asset 10.3% 14.1%
Value)
Indices
FTSE All-Share Index 2,869.04 3,078.21 -6.8
Standard & Poor's Composite Index 1,249.46 1,429.39 -11.3*
FT/S&P World Europe (ex UK) Index (£) 332.53 351.72 -5.5
TOPIX (Tokyo First Section Index) 1,366.46 1,379.96 -11.2*
FT/S&P World (ex UK) Index (£) 319.89 355.63 -10.0
50/50 FTSE All-Share/ 183.20 200.00 -8.4
FT/S&P World (ex UK) (£)
*£ adjusted
(Unaudited) (Unaudited) %
Half year ended Half year ended %
30 April 2001 30 April 2000 Change
Revenue
Gross revenue £6,916,000 £6,699,000 +3.2
Earnings per ordinary share 3.60p 3.29p +9.4
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
Group Statement of Total Return (incorporating the revenue account*)
for the half year ended 30 April 2001
(Unaudited) (Unaudited)
Half year ended Half year ended
30 April 2001 30 April 2000
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Total - (8,819) (8,819) - 40,430 40,430
capital
(losses)/gains
from
investments
Income from 6,374 - 6,374 5,909 - 5,909
fixed asset
investments
Other 542 - 542 790 - 790
interest
receivable
and
similar
income
-------- -------- -------- --------- --------- ---------
Gross 6,916 (8,819) (1,903) 6,699 40,430 47,129
revenue and
capital
(losses)/gains
Management (685) (600) (1,285) (618) (541) (1,159)
fee
Other (770) - (770) (444) - (444)
administrative
expenses
-------- -------- -------- --------- --------- ---------
Net 5,461 (9,419) (3,958) 5,637 39,889 45,526
return/(loss)
on ordinary
activities
before
finance
costs
and taxation
Interest (365) (852) (1,217) (360) (840) (1,200)
payable and
similar
charges
-------- -------- -------- --------- --------- ---------
Net 5,096 (10,271) (5,175) 5,277 39,049 44,326
return/(loss)
on ordinary
activities
before
taxation
Taxation on (371) 223 (148) (421) 314 (107)
net return
on
ordinary
activities
-------- -------- -------- --------- --------- ---------
Net 4,725 (10,048) (5,323) 4,856 39,363 44,219
return/(loss)
on ordinary
activities
after
taxation
Dividends -
Ordinary
Shares
Over 219 - 219 116 - 116
provision in
prior year
1st interim (2,069) - (2,069) (2,199) - (2,199)
of 1.64p
(2000: 1.55p)
2nd interim (2,069) - (2,069) (2,199) - (2,199)
of 1.64p
(2000: 1.55p)
3rd interim - - - - - -
2000: 1.55p
4th interim - - - - - -
2000: 1.70p
-------- -------- -------- --------- --------- ---------
(3,919) - (3,919) (4,282) - (4,282)
-------- -------- -------- --------- --------- ---------
Transfer 806 (10,048) (9,242) 574 39,363 39,937
to/(from)
reserves
====== ===== ===== ====== ===== =====
Return/(loss) 3.60p (7.65p) (4.05p) 3.29p 26.67p 29.96p
per ordinary
share (Note
1)
====== ===== ===== ====== ===== =====
(Audited)
Year ended
31 October 2000
Revenue Capital Total
£'000 £'000 £'000
Total capital (losses)/gains from - 59,372 59,372
investments
Income from fixed asset 12,647 - 12,647
investments
Other interest receivable and 1,659 - 1,659
similar income
--------- --------- ---------
Gross revenue and capital 14,306 59,372 73,678
(losses)/gains
Management fee (1,260) (1,103) (2,363)
Other administrative expenses (753) - (753)
--------- --------- ---------
Net return/(loss) on ordinary 12,293 58,269 70,562
activities before finance costs
and taxation
Interest payable and similar (723) (1,688) (2,411)
charges
--------- --------- ---------
Net return/(loss) on ordinary 11,570 56,581 68,151
activities before taxation
Taxation on net return on (982) 712 (270)
ordinary activities
--------- --------- ---------
Net return/(loss) on ordinary 10,588 57,293 67,881
activities after taxation
Dividends - Ordinary Shares
Over provision in prior year 116 - 116
1st interim of 1.64p (2000: 1.55p) (2,199) - (2,199)
2nd interim of 1.64p (2000: 1.55p) (2,192) - (2,192)
3rd interim 2000: 1.55p (2,182) - (2,182)
4th interim 2000: 1.70p (2,369) - (2,369)
--------- --------- ---------
(8,826) - (8,826)
--------- --------- ---------
Transfer to/(from) reserves 1,762 57,293 59,055
====== ===== =====
Return/(loss) per ordinary 7.33p 39.65p 46.98p
share (Note 1)
====== ===== =====
* The revenue columns of this statement represent the revenue accounts of the
Group.
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
GROUP BALANCE SHEET
at 30 April 2001
(Unaudited) (Unaudited) (Audited)
At 30 April At 30 At 31 October
2001 April 2000
2000
£'000 £'000 £'000
Fixed asset investments:
Listed at market value
In Great Britain 271,738 265,252 279,023
Outside Great Britain 206,324 236,027 233,063
Other quoted funds 5,538 6,636 6,787
Unlisted - directors' valuation 1,500 - -
---------- ---------- ----------
Total fixed asset investments 485,100 507,915 518,873
---------- ---------- ----------
Current assets
Investments 14 17 39
Debtors 4,963 4,571 2,967
Bank balances and short term deposits 6,289 24,609 36,197
---------- ---------- ----------
11,266 29,197 39,203
Creditors: amounts falling due within one (16,523) (19,648) (21,716)
year
---------- ---------- ----------
Net current (liabilities)/assets (5,257) 9,549 17,487
---------- ---------- ----------
Total assets less current liabilities 479,843 517,464 536,360
Creditors: amounts falling due after more (29,129) (26,300) (29,453)
than one year
---------- ---------- ----------
Total net assets 450,714 491,164 506,907
====== ====== ======
Capital and reserves
Called-up share capital 31,542 35,466 35,192
Share premium 452 452 452
Other capital reserves 401,618 440,138 454,967
Revenue reserve 17,102 15,108 16,296
---------- ---------- ----------
Equity shareholders' funds 450,714 491,164 506,907
====== ====== ======
Net asset value per ordinary share (Note 357.2p 346.2p 360.1p
2)
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
GROUP CASH FLOW STATEMENT (Unaudited) (Unaudited) (Audited)
for the half year to 30 April 2001 Half year Half year Year
ended ended
ended
30 April 30 April
31 October
2001 2000 2000
£'000 £'000 £'000
Net cash inflow from operating activities 2,649 2,382 9,826
Interest paid (1,218) (1,213) (2,416)
Total tax (paid)/recovered (115) 212 947
Net cash inflow from purchases and sales 21,445 26,215 36,289
of investments
Equity dividends paid (4,332) (4,541) (8,932)
Cash withdrawn from short term deposit 17,934 8,664 3,704
---------- ---------- ----------
Net cash inflow before financing 36,363 31,719 39,418
Net cash outflow from financing (51,905) (38,167) (39,643)
---------- ---------- ----------
Decrease in cash (15,542) (6,448) (225)
====== ====== ======
Reconciliation of operating revenue to net
cash inflow
from operating activities
Net revenue before interest payable and 5,461 5,637 12,293
taxation
Net sales of trading stock 25 25 3
Increase in accrued income (1,921) (1,710) (298)
Decrease/(increase) in other debtors 129 (498) (119)
Decrease in creditors (58) (228) (190)
Management charge taken to other capital (600) (541) (1,103)
reserves
UK income tax deducted at source (30) (80) (191)
Overseas withholding tax (223) (172) (505)
Scrip dividends included in investment (134) (51) (64)
income
---------- ---------- ----------
Net cash inflow from operating activities 2,649 2,382 9,826
====== ====== ======
Reconciliation of net cash flow to
movement in net
debt
Decrease in cash as above (15,542) (6,448) (225)
Cash inflow from short term deposits (17,934) (8,664) (3,704)
Cash outflow/(inflow) from financing 4,954 1,877 (22)
---------- ---------- ----------
Change in net debt resulting from cash (28,522) (13,235) (3,951)
flows
Exchange movements 2,268 (479) (1,053)
---------- ---------- ----------
Movement in net debt during the period (26,254) (13,714) (5,004)
Net debt at beginning of the period (7,770) (2,766) (2,766)
---------- ---------- ----------
Net debt at the end of the period (34,024) (16,480) (7,770)
====== ====== ======
Represented by:
Cash at bank less bank overdrafts 6,137 24,609 36,197
Debt falling due within one year (11,032) (14,789) (14,514)
Debt falling due after more than one year (29,129) (26,300) (29,453)
---------- ---------- ----------
(34,024) (16,480) (7,770)
====== ====== ======
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
NOTES:
1. Return/(loss) per Ordinary Share
Revenue return per ordinary share is based on earnings attributable to
ordinary shares of £4,725,000 (half year ended 30 April 2000: £4,856,000;
year ended 31 October 2000: £10,588,000), and on the weighted average
number of ordinary shares in issue during the period of 131,366,762 (half
year ended 30 April 2000: 147,598,231; year ended 31 October 2000:
144,498,237).
Capital return per ordinary share is based on losses attributable to
ordinary shares of £10,048,000 (half year ended 30 April 2000: gains £
39,363,000; year ended 31 October 2000: gains £57,293,000) and on the
weighted average number of ordinary shares in issue during the period of
131,366,762 (half year ended 30 April 2000: 147,598,231; year ended 31
October 2000: 144,498,237).
2. Net Asset Value per Ordinary Share
The net asset value per ordinary share is based on net assets
attributable to ordinary shares of £450,714,000 (30 April 2000: £
491,164,000; 31 October 2000: £506,907,000) and on the 126,169,781
ordinary shares in issue at 30 April 2001 (30 April 2000: 141,865,000; 31
October 2000: 140,770,000).
3. Share Buy-Backs
During the half year to 30 April 2001, the Company made authorised market
purchases for cancellation of 14,600,219 of its own issued ordinary
shares of 25p, representing 10.4% of its called up share capital, for an
aggregate consideration of £46,951,000.
4. Accounts for the year ended 31 October 2000
The figures and financial information for the year ended 31 October 2000
are extracted from the latest published accounts of the Company and do
not constitute the 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 contain a statement under
either Section 237(2) or Section 237(3) of the Companies Act 1985.
5. Dividend
The directors have declared a second interim dividend of 1.64p (2000:
1.55p) net per ordinary share payable on 31 August 2001 to shareholders
registered on 27 July 2001. The shares will be quoted ex-dividend on 25
July 2001.
6. Interim Report
The Interim Report will be posted to shareholders in July and will be
available from the Registered Office at 4 Broadgate, London EC2M 2DA
thereafter.
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THE BANKERS INVESTMENT TRUST PLC
Unaudited Preliminary Results for the Half Year Ended 30 April 2001
LARGEST INVESTMENTS
at 30 April 2001
The 50 largest investments (convertibles and all classes of equity in any one
company being treated as one investment) were as follows:
Market Market
value
value
£'000
£'000
GlaxoSmithKline 16,674 Unibail 2,891
BP 15,675 Irish Life 2,888
Shell Transport & Trading 13,596 Slough Estates 2,824
Vodafone 13,382 ABN-Amro 2,813
HSBC Holdings 9,486 Pfizer 2,807
Royal Bank of Scotland 7,286 Richemont 2,765
Lloyds TSB 7,083 Sodexho Alliance 2,752
Barclays 6,975 Cable & Wireless 2,722
Philips Electronics 6,195 AOL Time Warner 2,718
Total Fina Elf 6,032 Dexia 2,645
British Telecommunications 5,971 Unilever 2,640
AstraZeneca 5,206 Credit Suisse 2,609
Henderson American Smaller 5,128 Reuters 2,563
Co's
Abbey National 4,092 British American Tobacco 2,552
Diageo 3,969 Pearson 2,504
ENI 3,824 Tesco 2,500
Aventis 3,786 Microsoft 2,472
Siemens 3,703 ISS International 2,428
CGNU 3,686 Rio Tinto 2,407
VNU 3,629 Citigroup 2,405
Prudential 3,599 Exxon Mobil 2,375
Nestle 3,474 Ahold 2,368
Novartis 3,368 Mitsubishi Tokyo 2,352
Financial
General Electric 2,968 Akzo Nobel 2,327
Anglo American 2,928 Bass 2,307
These investments total £226,349,000 which represents 46.7% of the portfolio.
GEOGRAPHICAL DISTRIBUTION
Valuation of investments Currency exposure
30 April 31 October 30 April 31
October
2001 2000 2001
2000
% % %
%
UK 55.5 53.0 54.0 51.4
Europe 19.3 18.9 21.4 21.0
North America 13.8 15.8 14.9 17.7
Japan 7.3 7.6 4.8 4.5
Hong Kong 1.3 1.2 1.4 1.4
Other Countries 2.8 3.5 3.5 4.0
100.0 100.0 100.0 100.0
- ENDS -
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