Final Results

Finsbury Life Sciences Inv Tst PLC 20 June 2001 Finsbury Life Sciences Investment Trust PLC Preliminary results for the year ended 31 March 2001 * Share price discount narrowed from 9.0% to 2.8%. * The Company substantially outperformed the sector, with the NAV declining by 9.8%, against a fall of 29.8% in the NASDAQ Biotechnology Index and a fall of 55.1% in the Neuer Markt Biotechnology Index. Finsbury Life Sciences Trust PLC today announces preliminary results for the year ended 31 March 2001. % increase 31 March 2001 31 March 2000 /(decrease) Net Asset Value per share 163.6p 181.3p - 9.8% Share Price 159.0p 165.0p - 3.6% Discount 2.8% 9.0% -- FTSE All Share Index (total return) 2,628.7 2,945.8 -10.8% A dividend of 0.2p per share will be paid on 30 July 2001 to shareholders on the register at the close of business on 6 July 2001. The shares will go ex-dividend on 4 July 2001. Chairman John Sclater, commented: 'The year has been one of continuing progress for the biotechnology industry. The first draft of the human genome project has been published, there have been great strides in bioinformatics and an ever increasing number of companies are either bringing their products to market or are advancing to late stage trials. The ageing population of the developed world, combined with rapid advancements in technology, create a very attractive environment for the biotechnology sector and we believe that the Trust will continue to deliver positive returns to the long term investor.' For and on behalf of Close Finsbury Asset Management Limited - Secretary 19 June 2001 - ENDS - Finsbury Life Sciences Investment Trust PLC Preliminary results for the year ended 31 March 2001 The following are attached: * Chairman's Statement * Balance Sheets of the Group and of the Company * Consolidated Statement of Total Return * Consolidated Cash Flow Statement * Notes to the Preliminary Results For further information please contact: Alastair Smith, Close Finsbury Asset Management Limited 020 7426 6240 Dr Andrew Clark, Reabourne Technology Investment Management 020 7426 6288 Limited Colin Edge, Close Finsbury Asset Management Limited 020 7426 6233 Fiona Harris, Quill Communications 020 7618 8905 Peter Keen, Merlin Biosciences Limited 020 7849 6003 Finsbury Life Sciences Investment Trust PLC Chairman's Statement Performance During the year ended 31 March 2001 the Trust's net asset value per share (' NAV') declined from 181.3p to 163.6p, a fall of 9.8%. This compares with a fall of 10.8% in the FTSE All-Share Index (total return), which is our benchmark index. Since the Trust was launched in June 1997 NAV has increased by 68.7% against a gain of 36.3% in the FTSE All-Share Index (total return). During the year the share price fell 3.6% from 165.0p to 159.0p. This movement has led to a reduction in the discount of the share price to the NAV from 9.0% to 2.8%. Results and Dividend The total deficit for the year ended 31 March 2001 was 17.5p per share (2000: return of 99.1p). This was made up of a revenue return of 0.3p per share (2000: deficit of 0.5p) and a capital deficit of 17.8p per share (1999: return of 99.6p). A final dividend of 0.2p (2000: nil) per share will be paid on 30 July 2001 to shareholders on the register of members at the close of business on 6 July 2001. This dividend is being made in order to maintain investment trust status, as legislation requires that the Trust retain no more than 15% of its investment income. Shareholders are reminded that, given the low yielding nature of the companies in which we invest, it is likely that the Trust will continue to provide little, if any, dividend income. Review of year and outlook The year has been one of continuing progress for the biotechnology industry. The first draft of the human genome project has been published, there have been great strides in bioinformatics and an ever increasing number of companies are either bringing their products to market or are advancing to late stage trials. During the year ReNeuron became the first company held within the Merlin Fund to achieve an IPO. The flotation occurred at a considerable premium to book cost and, at current prices, the IPO has led to an uplift in the valuation of the Merlin Fund of approximately £2m. It is anticipated that, subject to market conditions, several other unquoted companies held by the Trust (both directly and via the Merlin Fund) will undertake IPOs during the next 12 months. It is pleasing to note that since launch the percentage of shares held by private shareholders has increased from a negligible base to nearly 40% of the share register. Concerns over the slowdown in the US economy led to a decline in the share prices of biotechnology companies during the first quarter of 2001. Despite this fall the fundamentals of the biotechnology sector remain sound. Demand for healthcare products is not linked to the economic cycle, but is driven primarily by demographics. The ageing population of the developed world, combined with rapid advancements in technology, create a very attractive environment for the biotechnology sector and we believe that the Trust will continue to deliver positive returns to the long term investor. Annual General Meeting The Annual General Meeting of the Trust will be held on 20 July 2001 at 12.30pm at 10 Crown Place, London EC2 and I hope as many shareholders as are able will attend. This will be an opportunity to meet not just the Board by also to hear a presentation from Dr Andrew Clark and Peter Keen, our investment advisers. John Sclater, Chairman 19 June 2001 Finsbury Life Sciences Investment Trust PLC Consolidated Statement of Total Return incorporating the revenue account for the year ended 31 March 2001 Revenue Capital Total Revenue Capital Total 2001 2001 2001 2000 2000 2000 £000 £000 £000 £000 £000 £000 (Loss)/gains on investments - (4,430) (4,430) - 34,011 34,011 Exchange (losses)/gains on currency balances - (69) (69) - 21 21 Income 446 - 446 79 - 79 Investment management fee - (772) (772) - (4,058)(4,058) Other expenses (340) - (340) (223) - (223) Net return before finance 106 (5,271) (5,165) (144) 29,974 29,830 costs and taxation Interest payable (7) (101) (108) (6) - (6) and similar charges Return on ordinary activities 99 (5,372) (5,273) (150) 29,974 29,824 before taxation Taxation on ordinary (3) - (3) (2) - (2) activities Return on ordinary activities 96 (5,372) (5,276) (152) 29,974 29,822 after taxation Dividends on ordinary shares (equity) (60) - (60) - - - Transfer to/(from) reserves 36 (5,372) (5,336) (152) 29,974 29,822 Return per equity share 0.3p (17.8)p (17.5)p (0.5p) 99.6p 99.1p The revenue column of this statement is the profit and loss account of the Group. All revenue and capital items in the above statement derive from the continuing operations. Finsbury Life Sciences Investment Trust PLC Balance Sheets of the Group and Company as at 31 March Group Company Company 2001 2001 2000 £'000 £'000 £'000 Fixed assets - 46,806 46,806 55,201 investments Current assets Debtors 359 1,009 359 Cash at Bank 3,271 2,621 2,846 3,630 3,630 3,205 Creditors Amounts falling due (1,207) (1,207) (3,841) within one year Net current assets/ 2,423 2,423 (636) (liabilities) Net assets 49,229 49,229 54,565 Capital and reserves Called up share 7,525 7,525 7,525 capital Share premium 21,679 21,679 21,679 Capital reserve - 18,149 18,149 2,733 realised Capital reserve - 1,651 1,651 22,439 unrealised Revenue reserve 225 225 189 Total shareholders' 49,229 49,229 54,565 funds Net asset value per 163.6p 163.6p 181.3p ordinary share Finsbury Life Sciences Investment Trust PLC Consolidated Cash Flow Statement for the year ended 31 March 2001 2000 £000 £000 Net cash outflow from operating activities (4,263) (465) Servicing of finance Bank overdraft and loan interest paid (108) (6) Financial investment Purchase of investments (25,840) (13,290) Sales of investments 30,694 16,421) Net cash inflow from financial investment 4,854 3,131 Equity dividends paid - (301) Increase in cash 483 2,359 Reconciliation of net cash flow to movement in net funds 483 2,359 Exchange movements (69) - Movement in net funds 414 2,359 Net funds at 1 April 2,846 487 Net funds at 31 March 3,260 2,846 Finsbury Life Sciences Investment Trust PLC Notes 1 Revenue Account The revenue column of the Statement of Total Return represents the revenue account of the Group. 2 Income Income for the year was derived from the following sources: 2001 2000 £000 £000 Income from listed investments 335 58 Other operating income 111 21 Total 446 79 3 Investment management fee Revenue Capital Total Revenue Capital Total 2001 2001 2001 2000 2000 2000 £000 £000 £000 £000 £000 £000 Periodic fee - 660 660 - 398 398 Performance fee - 3 3 - 3,055 3,055 Irrecoverable VAT - 109 109 - 605 605 Total - 772 772 - 4,058 4,058 4 Return per share The revenue return per ordinary share is based on a revenue return of £96,000 (2000: deficit of £152,000) on ordinary activities after taxation and dividends on non-equity shares, and on 30,100,000 being the number of ordinary shares in issue throughout the year (2000: 30,100,000). Capital return per ordinary share is based on a net capital loss for the financial year of £5,372,000 (2000: gain of £29,974,000) and on 30,100,000 (2000: 30,100,000) ordinary shares as above. Finsbury Life Sciences Investment Trust PLC Notes (continued) 5 Comparative information These accounts are not statutory accounts. The above results have been agreed with the Auditors and are an abridged version of the Company's full draft accounts, which have not yet been signed or filed with the Registrar of Companies. The accounts for 2000 have been delivered to the Registrar of Companies and those for 2001 will be despatched to shareholders shortly. The 2000 accounts received an audit report which was unqualified and did not contain statements under Section 237 (2) and (3) of the Companies Act 1985. Close Finsbury Asset Management Limited - Secretary 19 June 2001

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