Interim Results

Bankers Investment Trust PLC 20 June 2005 THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 HIGHLIGHTS * NAV rose by 5.2% over the period (FTSE All-Share 4.3%) * The Company will pay a second interim dividend of 1.94p * Forecast minimum annual dividend of 7.80p an increase of 4.4% for the current year Extracts from the Chairman's Statement: Assets Stockmarkets around the world have continued to rise in value since our year end, albeit not in a straight line. Mixed economic news from Europe and the United States caused equity markets to retreat in April, taking the shine off our results. Despite this setback, it is pleasing to be able to report our net asset value per share rose by 5.2% during the period compared to a rise of 4.3% for the FTSE All-Share Index. Performance of the assets invested outside the UK continued to be affected by the strength of sterling, largely negating any appreciation in overseas share prices. Our long standing concern regarding US equity valuations again proved well founded with the main US index, the S & P 500 Composite, actually falling by 1.8% in sterling terms over the period. European stockmarkets, including the UK, performed well over the period despite lacklustre economic and consumer spending figures. An upbeat earnings reporting season and a busy period for takeovers helped to push share prices upward. Current share prices have been underpinned by increased corporate activity, driven by both corporate and private equity groups. We were particularly successful in holding a number of companies that received bids, such as RAC in the UK and ISS in Denmark. Asian and emerging markets have been poor investments so far during 2005. Rising interest rates in the US have brought an abrupt stop to the process known as carry-trade investing, whereby cheap US dollars are borrowed to invest in higher yielding emerging markets. A more balanced attitude to risk has resulted in global investors retreating from the Asian and emerging markets. Some of this risk aversion may have also affected Japan, where economic reform has been slow. Gearing has remained at around the 8% level, after adjusting for those stocks in bid situations. Over the period we have continued to repurchase shares from the market. These repurchases at a discount have produced an uplift in net asset value per share for remaining shareholders. - MORE - - 2 - THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 Earnings and Dividends Earnings per share increased by 13.3% to 4.26p per share during the half year. Based upon present estimates, as forecast, we expect to pay a minimum total dividend per share of 7.80p for the current year, an increase of 4.4%. Dividend growth in the UK continues to be strong, as companies show a willingness to reward shareholders with higher payouts. Elsewhere, Japan and US companies are also increasing payments, although from a lower base level. Outlook The first half of this year bears an uncanny resemblance to conditions experienced a year ago. In early 2004, there were inflationary fears which subsided to be replaced by worries about slowing global economic growth, which proved unfounded as the year advanced. This year the same issues are worrying investors, albeit with evidence of consumer spending slowing in Western Europe. Inflationary trends seem to be well contained and both companies and consumers seem to be coping well with oil at $50 a barrel. The key issue remains, can Central Banks set an interest rate environment that will create sustainable economic growth? Share prices have lagged earnings growth over the last twelve months leaving valuations at a lower level than a year ago. We have adopted a conservative investment outlook and maintained gearing at year end levels. There is the potential for share prices to advance over the remainder of the year providing consumer spending in Western markets, a key driver of global manufacturing output, does not retreat further. Sentiment amongst consumers and investors is currently low and any improvement, driven by a sense that interest rates have peaked, could lead to better stock markets. For further information contact: Alex Crooke Fund Manager The Bankers Investment Trust PLC Telephone: 020 7818 4447 James de Sausmarez Sarah Gibbons-Cook Director of Investment Trusts Investor Relations and PR Manager Henderson Global Investors Henderson Global Investors Telephone: 020 7818 3349 Telephone: 020 7818 3198 -MORE- - 3 - THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 FINANCIAL HIGHLIGHTS (Unaudited) (Unaudited) 30 April 31 October % 2005 2004 Change Assets NAV per ordinary share (with debt at book value) 319.9p 304.0p +5.2 Ordinary share mid-market price 268.8p 262.0p +2.6 Discount (share price to net asset value) 16.0% 13.8% NAV per ordinary share (with debt at market value) 313.2p 298.2p +5.0 Total assets less current liabilities (£'000) £415,437 £401,864 +3.4 Indices FTSE All-Share Index 2,397.05 2,297.66 +4.3 S&P 500 Composite Index 1,156.85 1,130.20 -1.8* FTSE World Europe (ex UK) Index (£) 268.20 259.00 +3.6 TOPIX (Tokyo First Section Index) 1,129.93 1,085.43 +1.1* FTSE World (ex UK) Index (£) 239.27 237.96 +0.6 50/50 FTSE All-Share/ FTSE World (ex UK) (£) 204.88 200.00# +2.4 * £ adjusted # rebased as at 31/10/04 (Unaudited) (Unaudited) % Half year ended Half year ended % 30 April 2005 30 April 2004 Change Revenue Gross revenue (£'000) £6,652 £6,093 +9.2 Earnings per ordinary share 4.26p 3.76p +13.3 - MORE - - 4 - THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 GROUP STATEMENT OF TOTAL RETURN (incorporating the revenue account*) for the half year ended 30 April 2005 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 April 2005 30 April 2004 31 October 2004 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from investments - 19,841 19,841 - 21,687 21,687 - 27,043 27,043 Income from fixed asset investments 6,583 - 6,583 5,944 - 5,944 12,482 - 12,482 Other interest receivable and similar income 69 - 69 149 - 149 420 - 420 --------- --------- --------- --------- --------- --------- --------- --------- --------- Gross revenue and capital gains 6,652 19,841 26,493 6,093 21,687 27,780 12,902 27,043 39,945 Management fee (515) (459) (974) (494) (439) (933) (993) (886) (1,879) Other administrative (300) - (300) (344) - (344) (615) - (615) expenses --------- --------- --------- --------- --------- --------- --------- --------- --------- Net return on ordinary activities before finance costs and taxation 5,837 19,382 25,219 5,255 21,248 26,503 11,294 26,157 37,451 Interest payable and similar charges (373) (871) (1,244) (358) (837) (1,195) (722) (1,685) (2,407) --------- --------- --------- --------- --------- --------- --------- --------- --------- Net return on ordinary activities before 5,464 18,511 23,975 4,897 20,411 25,308 10,572 24,472 35,044 taxation Taxation on net return on ordinary activities (231) - (231) (149) - (149) (448) - (448) --------- --------- --------- --------- --------- --------- --------- --------- --------- Available for ordinary shareholders 5,233 18,511 23,744 4,748 20,411 25,159 10,124 24,472 34,596 --------- --------- --------- --------- --------- --------- --------- --------- --------- Dividends - ordinary shares (4,713) - (4,713) (4,618) - (4,618) (9,311) - (9,311) --------- --------- --------- --------- --------- --------- --------- --------- --------- Transfer to reserves 520 18,511 19,031 130 20,411 20,541 813 24,472 25,285 ===== ===== ===== ===== ===== ===== ====== ====== ===== Return per ordinary share (note 1) 4.26p 15.07p 19.33p 3.76p 16.18p 19.94p 8.05p 19.45p 27.50p ===== ===== ===== ===== ===== ===== ====== ====== ===== * The revenue columns of this statement represent the profit and loss accounts of the Group. - MORE - - 5 - THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 GROUP BALANCE SHEET at 30 April 2005 (Unaudited) (Unaudited) (Audited) At 30 April 2005 At 30 April At 31 October 2004 2004 £'000 £'000 £'000 Fixed asset investments Listed at market value: in the UK 250,407 233,018 235,603 outside the UK 175,332 183,306 168,328 Other quoted funds 1,638 1,570 1,489 Unquoted investment 750 1,050 1,050 ---------- ---------- ---------- Total fixed asset investments 428,127 418,944 406,470 ---------- ---------- ---------- Current assets Debtors 4,314 4,685 1,311 Bank balances and short term deposits 1,969 7,569 3,069 ---------- ---------- ---------- 6,283 12,254 4,380 Creditors: amounts falling due within one year (18,973) (27,208) (8,986) ---------- ---------- ---------- Net current liabilities (12,690) (14,954) (4,606) ---------- ---------- ---------- Total assets less current liabilities 415,437 403,990 401,864 Creditors: amounts falling due after more than one Year (26,300) (26,300) (26,300) ---------- ---------- ---------- Total net assets 389,137 377,690 375,564 ====== ====== ====== Capital and reserves Called up share capital 30,407 31,542 30,883 Share premium account 452 452 452 Other reserves 339,479 328,100 325,950 Revenue reserve 18,799 17,596 18,279 ---------- ---------- ---------- Shareholders' funds (all equity) 389,137 377,690 375,564 ====== ====== ====== Net asset value per ordinary share (note 2) 319.9p 299.4p 304.0p - MORE - - 6 - THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 GROUP CASH FLOW STATEMENT (Unaudited) (Unaudited) (Audited) for the half year ended 30 April 2005 Half year Half year ended Year ended 30 April ended 30 April 2004 31 October 2005 2004 £'000 £'000 £'000 Net cash inflow from operating activities 2,974 3,054 10,218 Interest paid (1,236) (2,319) (3,531) Net tax recovered 66 92 209 Net cash (outflow)/inflow from purchases and sales of investments (2,570) (3,946) 13,733 Equity dividends paid (4,698) (4,505) (9,111) Cash withdrawn from short term deposit - 3,601 3,597 ---------- ---------- ---------- Net cash (outflow)/inflow before financing (5,464) (4,023) 15,115 Net cash inflow/(outflow) from financing 4,198 3,653 (20,019) ---------- ---------- ---------- Decrease in cash (1,266) (370) (4,904) ====== ====== ====== Reconciliation of operating revenue to net cash inflow from operating activities Net revenue before interest payable and taxation 5,837 5,255 11,294 (Increase)/decrease in accrued income (1,933) (1,736) 245 (Increase)/decrease in other debtors (21) 12 - Decrease/(increase) in creditors (46) 173 228 Management charge taken to other reserves (459) (439) (886) Overseas withholding tax (363) (211) (564) Scrip dividends included in investment income (41) - (99) ---------- ---------- ---------- Net cash inflow from operating activities 2,974 3,054 10,218 ====== ====== ====== Reconciliation of net cash flow to movement in net debt Decrease in cash as above (1,266) (370) (4,904) Net cash (inflow)/outflow from financing (9,389) (3,653) 13,154 Net cash inflow from liquid resources - (3,601) (3,597) ---------- ---------- ---------- Change in net debt resulting from cash flows (10,655) (7,624) 4,653 Exchange movements 169 625 813 ---------- ---------- ---------- Movement in net debt during the period (10,486) (6,999) 5,466 Net debt at beginning of the period (26,778) (32,244) (32,244) ---------- ---------- ---------- Net debt at the end of the period (37,264) (39,243) (26,778) ====== ====== ====== Represented by: Cash at bank and short term deposits less bank overdrafts 1,969 7,567 3,069 Debt falling due within one year (12,933) (20,510) (3,547) Debt falling due after more than one year (26,300) (26,300) (26,300) ---------- ---------- ---------- (37,264) (39,243) (26,778) ====== ====== ====== - MORE - - 7 - THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 NOTES: 1. Return per ordinary share Revenue return per ordinary share is based on earnings attributable to ordinary shares of £5,233,000 (half year ended 30 April 2004: £4,748,000; year ended 31 October 2004: £10,124,000) and on the weighted average number of ordinary shares in issue during the period of 122,836,155 (half year ended 30 April 2004: 126,169,781; year ended 31 October 2004: 125,810,998). Capital return per ordinary share is based on gains attributable to ordinary shares of £18,511,000 (half year ended 30 April 2004: £20,411,000; year ended 31 October 2004: £24,472,000) and on the weighted average number of ordinary shares in issue during the period of 122,836,155 (half year ended 30 April 2004: 126,169,781; year ended 31 October 2004: 125,810,998). 2. Net asset value per ordinary share The net asset value per ordinary share is based on net assets attributable to ordinary shares of £389,137,000 (30 April 2004: £377,690,000; 31 October 2004: £375,564,000) and on the 121,627,913 ordinary shares in issue at 30 April 2005 (30 April 2004: 126,169,781; 31 October 2004: 123,530,940). 3. Accounts for the year ended 31 October 2004 The figures and financial information for the year ended 31 October 2004 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. 4. Dividend The directors have declared a second interim dividend of 1.94p (2004: 1.83p) net per ordinary share, payable on 31 August 2005 to shareholders registered on 29 July 2005. The shares will be quoted ex-dividend on 27 July 2005. A first interim dividend of 1.94p (2004: 1.83p) was paid on 28 February 2005. 5. Interim Report The Interim Report will be posted to shareholders at the end of June and will be available from the Registered Office at 4 Broadgate, London EC2M 2DA thereafter. - MORE - - 8 - THE BANKERS INVESTMENT TRUST PLC Unaudited Preliminary Results for the half year ended 30 April 2005 LARGEST INVESTMENTS at 30 April 2005 The 50 largest investments (convertibles and all classes of equity in any one company being treated as one investment) were as follows: Market value Market value £'000 £'000 BP 19,544 Reuters 2,873 HSBC 12,700 QBE Insurance 2,865 Royal Bank of Scotland 10,798 Rio Tinto 2,830 GlaxoSmithKline 10,785 Fresenius 2,788 Shell Transport & Trading 9,343 National Grid Transco 2,780 Vodafone 8,107 Mitsubishi Tokyo Financial 2,726 Barclays 6,632 Allied Irish Banks 2,661 Lloyds TSB 5,907 Novartis 2,647 Diageo 4,799 Anglo American 2,601 BT Group 4,794 Deutsche Post 2,591 HBOS 4,328 Reckitt Benckiser 2,540 ENI 4,083 Codan 2,517 British American Tabacco 3,980 Prudential 2,503 Tesco 3,788 Richemont 2,496 AstraZeneca 3,650 Ito-Yokado 2,490 Irish Life & Permanent 3,577 Nestle 2,476 ISS 3,551 Deutsche Postbank 2,437 Samsung Electronics 3,401 Inditex 2,436 Total Fina Elf 3,380 Sanofi-Aventis 2,431 ITV 3,368 Wolseley 2,410 BHP Billiton 3,335 Scottish & Southern Energy 2,344 Unibail 3,291 Altana 2,327 Gallaher 3,049 Slough Estates 2,247 Carnival 3,016 Aviva 2,238 Dexia 2,885 General Electic 2,236 These investments total £209,581,000 which represents 49.0% of the portfolio. GEOGRAPHICAL DISTRIBUTION Valuation of investments Currency exposure 30 April 31 October 30 April 31 October 2005 2004 2005 2004 % % % % UK 57.4 56.8 55.8 53.6 Europe 16.8 16.5 19.0 18.2 North America 10.7 11.3 8.5 11.4 Japan 8.2 8.6 9.1 9.4 Pacific (ex Japan) 5.2 5.0 5.7 5.4 Emerging Markets 1.7 1.8 1.9 2.0 100.0 100.0 100.0 100.0 - ENDS - This information is provided by RNS The company news service from the London Stock Exchange

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