Final Results

Finsbury Emerging Biotechnology Tst 06 June 2006 NEWS RELEASE 6 June 2006 Preliminary results for the year ended 31 March 2006 Finsbury Emerging Biotechnology Trust PLC today announces preliminary results for the year ended 31 March 2006 (Unaudited) Restated (Audited) 31 March 2006 31 March 2005 % change Shareholders' Funds (£'000) 36,556 30,449 +20.1 Net Asset Value per share 131.8p 101.2p +30.2 Share Price 135.5p 91.3p +48.4 (Premium)/discount of Share Price to Net Asset Value per share (2.8)% 9.8% - NASDAQ Biotechnology Index (sterling adjusted) 483.7 344.3 +40.5 FTSE All Share (total return) 3,462.2 2,704.5 +28.0 Total Expense Ratio (excluding exceptional expenses) * 3.0% 2.6% - * The total expense ratio, shown above, excludes exceptional expenses of £193,000 in 2006 and £75,000 in 2005 incurred in connection with the identification and appointment of a new Investment Adviser. For and on behalf of Close Finsbury Asset Management Limited - Company Secretary 6 June 2006 - ENDS - The following are attached: • Chairman's Statement • Consolidated Income Statement • Consolidated and Company Statement of Changes in Equity • Consolidated and Company Balance Sheets • Consolidated and Company Cash Flow Statements • Notes to the Financial Statements For further information please contact: Alastair Smith, Close Finsbury Asset Management Limited 020 7426 6240 Mark Pope, Close Finsbury Asset Management Limited 020 7426 6294 Jo Stonier, Quill Communications 020 7758 2230 Chairman's Statement PERFORMANCE I am delighted to report a significant improvement in the Company's performance following the change in our Investment Adviser and strategy, mentioned in my last Chairman's Statement and approved by shareholders in May last year. During the year ended 31 March 2006, the Company's net asset value per share rose from 101.2p to 131.8p, an increase of 30.2 per cent. The Company's benchmark, the NASDAQ Biotechnology Index (sterling adjusted), rose by 40.5 per cent. over the year. Much of this rise, however, occurred in the period from 1 April 2005 to 19 May 2005, i.e. prior to the adoption of the NASDAQ index as the Company's benchmark and the implementation of the Company's new investment strategy. For the period from 19 May 2005 to 31 March 2006, the performance delivered by our new Investment Adviser was as follows: Net asset value per share +32.2% Share price +43.8% Benchmark +29.7% This outperformance of the benchmark is particularly notable given the costs of the significant reorganisation of the portfolio that took place during the period from 19 May 2005. Overall, the Company's share price rose by 48.4 per cent. during the year. At the end of the year the share price stood at a 2.8 per cent. premium to net asset value per share. EARNINGS AND DIVIDEND Earnings per share were 30.1p for the year, comprising a revenue deficit of 1.9p per share (2005: deficit of 1.4p) and a capital return of 32.0p (2005: deficit of 8.8p). No dividend is recommended in respect of the year ended 31 March 2006 (2005: Nil). PLACING AND OFFER FOR SUBSCRIPTION At an Extraordinary General Meeting, held on 24 May 2006, the necessary resolutions were approved by Shareholders to enable the Placing and Offer for Subscription, announced by the Board on 28 April 2006, to proceed. I am pleased to report that demand for the Company's shares was strong with £40.8 million being raised and 38,172,263 new shares being issued at a premium of 2.3 per cent. to net asset value per share. At the time of writing, the proceeds from the issue have only just been received but they have already been invested in the Company's investment portfolio by our Investment Adviser who has worked hard to identify investment opportunities to take advantage of current market weakness. Full details of how this was effected will be included in the Company's next interim report. DISCOUNT MANAGEMENT POLICY AND BUY-BACK AUTHORITY The Board's confidence that the new Investment Adviser and the revised investment objective would be attractive to new investors and would provide the prospect of a sustained improvement in the rating of the Company's shares has proved to be well-founded. In order to support this positive situation, the Board has agreed to continue with its policy of active discount management and to buy back shares if the market price is at a discount greater than 6 per cent. to the net asset value per share. The execution and timing of any share buy-back will continue to be at the absolute discretion of the Board. During the year a total of 2,610,000 shares were bought back for cancellation, at an average discount to net asset value per share of 6.2 per cent., costing £2.5 million (excluding expenses). All of these shares were repurchased before the appointment of the new Investment Adviser on 19 May 2005; since that date no further share buy-backs have been necessary. Also during the year, 250,000 new shares were issued, at a premium of 2.7 per cent. to net asset value per share, raising a total of £335,000. THE BOARD I am delighted to report that Mr Sven Borho, a founding General Partner of OrbiMed Advisors, LLC, the Company's Investment Adviser, was appointed to the Board in March. His extensive experience in the Emerging Biotechnology sector has already proved of great benefit to the Company. THE COMPANY'S ARTICLES OF ASSOCIATION (the "Articles") The Company's Articles have remained substantially unchanged since the Company's incorporation in 1997. The Board believes that as a result of various legislative and regulatory developments the time is now right to refresh the Articles to bring them into line with current best practice. A Special Resolution will be proposed at the Annual General Meeting which will, if approved, ratify the adoption of new Articles. The material differences between the current and the proposed Articles are summarised in a separate circular to Shareholders. OUTLOOK The Board is pleased with the performance of the new Investment Adviser since its appointment in May 2005. After strong performance in the second half of 2005, the biotechnology sector suffered a reversal in March 2006 which has continued through to May. This weakness is principally due to the healthcare sector falling out of favour with investors, combined with some disappointments in first quarter results from several major biotechnology companies. In addition, the recent weakness of the US dollar has adversely affected the sterling value of the portfolio as the majority of the Company's assets are denominated in US dollars. The Board takes the view that the investment policy should be to identify the best companies in the sector without being swayed by currency fluctuations, and it continues to believe that the prospects for emerging biotechnology companies remain bright, particularly as long-term growth fundamentals remain strong and as merger and acquisition activity should help buoy performance in the sector. The Board further sees the recent market correction as an opportunity to purchase shares in the biotechnology sector at attractive valuations. ANNUAL GENERAL MEETING The Annual General Meeting of the Company will be held at 10 Crown Place, London EC2A 4FT, on Wednesday, 19 July 2006 at 12 noon, and I hope as many Shareholders as are able will attend. This will be an opportunity to meet the Board and to hear a presentation from our Investment Adviser. John Sclater Chairman Consolidated Income Statement for the year ended 31 March 2006 (Unaudited) Restated (see note 6) Year ended 31 (Audited) March 2006 Year ended 31 March 2005 Revenue Capital Total Revenue Capital Total return return Return return return Return £'000 £'000 £'000 £'000 £'000 £'000 ------------------ ------- ------- ------- ------- ------- ------- Investment income Investment income (see note 2) 93 - 93 75 - 75 Other income (see note 2) 18 - 18 20 - 20 ------------------ ------- ------- ------- ---- ------- ------- ------- Total income 111 - 111 95 - 95 Gains and losses on investments Gains/(losses) on investments held at fair value through profit or loss - 9,774 9,774 - (2,218) (2,218) Exchange losses on currency balances - (207) (207) - (31) (31) Expenses Investment management fees (see note 3) - (752) (752) - (391) (391) Other expenses (605) - (605) (508) - (508) ------------------ ------- ------- ------- ------- ------- ------- (Loss)/profit before finance costs and taxation (494) 8,815 8,321 (413) (2,640) (3,053) ------------------ ------- ------- ------- ---- ------- ------- ------- Finance costs (16) (21) (37) (8) - (8) ------------------ ------- ------- ------- ---- ------- ------- ------- (Loss)/profit before taxation (510) 8,794 8,284 (421) (2,640) (3,061) ------------------ ------- ------- ------- ---- ------- ------- ------- Taxation - - - (2) - (2) ------------------ ------- ------- ------- ------- ------- ------- (Loss)/profit for the year (510) 8,794 8,284 (423) (2,640) (3,063) ------------------ ------- ------- ------- ---- ------- ------- ------- Earnings/(loss) per Ordinary share (see note 4) (1.9)p 32.0p 30.1p (1.4)p (8.8)p (10.2)p ------------------ ------- ------- ------- ---- ------- ------- ------- The total column of this statement represents the Group's Income Statement, prepared in accordance with International Financial Reporting Standards (IFRS). The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Trust Companies. All items in the above statement derive from continuing operations. All income is attributable to the equity holders of Finsbury Emerging Biotechnology Trust PLC, the parent Company. There are no minority interests. Consolidated and Company Statement of Changes in Equity for the year ended 31 March 2006 ---------------- ----------------------------------- Group year ended 31 March 2006 ---------------- ----------------------------------- Ordinary Capital Share Share Special Redemption Capital Retained Capital Premium Reserve Reserve Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2005 (as restated) (see note 6) 7,525 - 21,679 - 2,414 (1,169) 30,449 Net profit/(loss) for the year - - - - 8,794 (510) 8,284 Buyback of Ordinary shares (653) - (2,512) 653 - - (2,512) Issue of Ordinary shares 63 272 - - - - 335 ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2006 6,935 272 19,167 653 11,208 (1,679) 36,556 ---------------- ------- ------- ------ -------- ------ ------- ------ ---------------- ----------------------------------- Company year ended 31 March 2006 ---------------- ----------------------------------- Ordinary Capital Share Share Special Redemption Capital Retained Capital Premium Reserve Reserve Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2005 (as restated) 7,525 - 21,679 - 2,407 (1,162) 30,449 Net profit/(loss) for the year - - - - 8,794 (510) 8,284 Buyback of Ordinary shares (653) - (2,512) 653 - - (2,512) Issue of Ordinary shares 63 272 - - - - 335 ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2006 6,935 272 19,167 653 11,201 (1,672) 36,556 ---------------- ------- ------- ------ -------- ------ ------- ------ ---------------- ----------------------------------- Group year ended 31 March 2005 ---------------- ----------------------------------- Ordinary Capital Share Share Special Redemption Capital Retained Capital Premium Reserve Reserve Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2004 (as restated) (see note 7) 7,525 - 21,679 - 5,054 (746) 33,512 Net loss for the year - - - - (2,640) (423) (3,063) ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2005 7,525 - 21,679 - 2,414 (1,169) 30,449 ---------------- ------- ------- ------ -------- ------ ------- ------ ---------------- ----------------------------------- Company year ended 31 March 2005 ---------------- ----------------------------------- Ordinary Capital Share Share Special Redemption Capital Retained Capital Premium Reserve Reserve Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2004 (as restated) 7,525 - 21,679 - 5,046 (738) 33,512 Net loss for the year - - - - (2,639) (424) (3,063) ---------------- ------- ------- ------ -------- ------ ------- ------ At 31 March 2005 7,525 - 21,679 - 2,407 (1,162) 30,449 ---------------- ------- ------- ------ -------- ------ ------- ------ Consolidated and Company Balance Sheets as at 31 March 2006 Restated (see note 1) (Unaudited) (Unaudited) (Audited) (Audited) Group Company Group Company 31 March 2006 31 March 2006 31 March 2005 31 March 2005 £'000 £'000 £'000 £'000 -------------------- -------- -------- -------- ---------- Non current assets Investments held at fair value through profit or loss 37,043 37,043 30,403 30,403 Current assets Other receivables 1,295 1,302 39 46 Cash and cash equivalents 729 729 301 301 -------------------- -------- -------- -------- ---------- 2,024 2,031 340 347 -------------------- -------- -------- -------- ---------- Total assets 39,067 39,074 30,743 30,750 Current liabilities Other payables 1,362 1,369 294 301 Bank overdrafts 1,149 1,149 - - -------------------- -------- -------- -------- ---------- 2,511 2,518 294 301 -------------------- -------- -------- -------- ---------- Net assets 36,556 36,556 30,449 30,449 -------------------- -------- -------- -------- ---------- Equity attributable to equity holders Ordinary share capital 6,935 6,935 7,525 7,525 Share premium 272 272 - - Special reserve 19,167 19,167 21,679 21,679 Capital redemption reserve 653 653 - - Capital reserve 11,208 11,201 2,414 2,407 Retained earnings (1,679) (1,672) (1,169) (1,162) -------------------- -------- -------- -------- ---------- Total equity 36,556 36,556 30,449 30,449 -------------------- -------- -------- -------- ---------- Net asset value per Ordinary share (see note 5) 131.8p 131.8p 101.2p 101.2p Consolidated and Company Cash Flow Statements for the year ended 31 March 2006 Restated (See note 1) (Unaudited) (Unaudited) (Audited) (Audited) Group Company Group Company 31 March 2006 31 March 2006 31 March 2005 31 March 2005 £'000 £'000 £'000 £'000 -------------------- -------- -------- --------- ---------- Operating activities Profit/(loss) before tax 8,284 8,284 (3,061) (3,061) Add back interest paid 37 37 8 8 Less: (loss)/gain on investments held at fair value through profit or loss (9,567) (9,567) 2,249 2,249 Net sales of investments held at fair value through profit or loss 2,979 2,979 990 990 Decrease in other receivables 22 22 3 3 (Decrease)/increase in other payables (62) (62) 99 99 -------------------- -------- -------- --------- ---------- Net cash inflow from operating activities before interest and taxation 1,693 1,693 288 288 -------------------- -------- -------- --------- ---------- Interest paid (37) (37) (8) (8) Tax on overseas income 1 1 (2) (2) -------------------- -------- -------- --------- ---------- Net cash inflow from operating activities 1,657 1,657 278 278 -------------------- -------- -------- --------- ---------- Financing activities Issue of Ordinary shares 335 335 - - Buy-backs of Ordinary shares (2,512) (2,512) - - -------------------- -------- -------- --------- ---------- Net cash outflow from financing (2,177) (2,177) - - -------------------- -------- -------- --------- ---------- (Decrease)/increase in cash and cash equivalents (520) (520) 278 278 Cash and cash equivalents at start of year 301 301 54 54 Effect of foreign exchange rate changes (201) (201) (31) (31) -------------------- -------- -------- --------- ---------- Cash and cash equivalents at end of year (420) (420) 301 301 -------------------- -------- -------- --------- ---------- Notes to the Financial Statements 1 Accounting Policies The financial statements of the Company and the Group have been prepared in accordance with International Financial Reporting Standards ("IFRS"). These comprise standards and interpretations by the International Accounting Standards Board ("IASB"), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Committee ("IASC") that remain in effect, to the extent that IFRS have been adopted by the European Union. The disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS are given in notes 6 and 7. (a) Accounting Convention The financial statements have been prepared under the historical cost convention, except where stated in (b) and (c) below. Where presentational guidance set out in the revised Statement of Recommended Practice (the "SORP") for Investment Trust Companies produced by the Association of Investment Trust Companies ("AITC") dated 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 comprise the accounts of the Company and its subsidiary undertaking made up to 31 March 2006. In the Company's financial statements, the investment in its subsidiary is stated at fair value. (c) Accounting Policy The Company has changed its accounting policy for the valuation of listed investments and the recognition of dividends payable to equity shareholders in accordance with provisions of IAS 39 Financial Instruments: Recognition and Measurement and IAS 10 Events after the Balance Sheet date. These changes in policy and the associated impact on the results of the Company are referred to below. (d) Investments Investments are recognised and derecognised on the trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are initially measured at fair value. Investments have been designated by the Board as held at fair value through profit or loss and accordingly are valued at fair value, deemed to be bid market prices. As the business of the Company and the Group is investing in financial assets with a view to profiting from their total return in the form of interest, dividends or increases in fair value, listed equities and fixed interest income securities are designated as fair value through profit or loss on initial recognition. The Company and the Group manage and evaluate the performance of these investments on a fair value basis in accordance with the investment strategy, and information about the Company and the Group is provided internally on this basis to the Board. Financial assets designated as at fair value through profit or loss, which are quoted investments, are measured at subsequent reporting dates at fair value, which is either the bid or the last trade price, depending on the convention of the exchange on which it is quoted. In respect of unquoted investments, or where the market for a financial instrument is not active, fair value is established by using valuation techniques, which may include using recent arm's length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that 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 instruments and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, that technique is utilised. On disposal, realised gains and losses are also recognised in the Income Statement. In accordance with IAS 39 the total transaction costs for the year were £209,000 (31 March 2005:£91,000) broken down as follows: purchase transaction costs for the year to 31 March were £119,000, (31 March 2005: £51,000), sale transaction costs were £90,000 (31 March 2005: £40,000). These costs comprise mainly stamp duty and commission. (e) Presentation of Income Statement In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AITC, 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 a dividend. Additionally, the net revenue is the measure the Directors believe appropriate in assessing the Group's compliance with certain requirements set out in section 842 of the Income and Corporation Taxes act 1988. (f) Income Dividends receivable on equity shares are recognised on the ex-dividend date. Where no ex-dividend date is quoted, dividends are recognised when the Company's right to receive payment is established. Dividends and interest on investments in unquoted shares and securities are recognised when they become receivable. Fixed returns on non-equity shares are recognised on a time apportionment basis so as to reflect the effective yield, provided there is no reasonable doubt that payment will be received in due course. Underwriting commission is recognised as income in so far as it relates to shares not required to be taken up. Where a proportion of the shares underwritten are required to be taken up the same proportion of commission received is treated as a deduction from the cost of the shares taken up, with the balance being taken to the Income Statement and allocated to revenue. (g) Expenses and Finance Costs All expenses are accounted for on an accruals basis. Expenses are charged through the income statement except as follows: (i) expenses which are incidental to the acquisition or disposal of an investment are charged to the income statement and allocated to the capital reserve; (ii) expenses are charged to the income statement and allocated to the capital reserve where a connection with the maintenance or enhancement of the value of the investments can be demonstrated and accordingly; (iii) investment management fees and related irrecoverable VAT are charged to the income statement and allocated to the capital reserve as the Directors expect that in the long term virtually all of the Company's returns will come from capital; and (iv) Loan interest is charged to the income statement and allocated to capital as the Directors expect that in the long term virtually all of the Company's returns will come from capital. (h) Taxation The payment of taxation is deferred or accelerated because of timing differences between the treatment of certain items for accounting and taxation purposes. Full provision for deferred taxation is made under the liability method on all timing differences that have arisen, but not reversed by the Balance Sheet date, unless such treatment is not permitted by International Accounting Standard 12. 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 column of the income statement, then no tax relief is transferred to the capital return column. (i) Foreign Currencies The currency of the primary economic environment in which the Company operates (the functional currency) is pounds sterling ("Sterling"), which is also the presentational currency of the Group. Transactions involving currencies other than Sterling, are recorded at the exchange rate ruling on the transaction date. At each balance sheet date, monetary items and non-monetary assets and liabilities that are fair valued, which are denominated in foreign currencies, are retranslated at the closing rates of exchange. Exchange differences arising on settlement of monetary items and from retranslating at the Balance Sheet date: - Investments and other financial instruments measured at fair value through profit or loss, and - other monetary items, are included in the Income Statement and allocated as capital if they are of a capital nature, or as revenue of they are of a revenue nature. Exchange differences allocated as capital are included in the transfer to the Capital Reserve. Transactions denominated in foreign currencies are recorded in the local currency at the actual exchange rates as at the date of transaction. Monetary assets and liabilities denominated in foreign currencies at the year end are reported at the rate of exchange prevailing at the year end. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in the capital reserve or in the revenue account depending on whether the gain is of a capital or revenue nature. (j) Reserves Capital Reserves The following are charged or credited in the Income Statement and then transferred to the Capital Reserve: • gains and losses on the realisation of investments • realised exchange differences of a capital nature • expenses charged to this reserve in accordance with the above referred policies • increases and decreases in the valuation of investments held at the year end • unrealised exchange differences of a capital nature 2 Income (Unaudited) (Audited) 2006 2005 £'000 £'000 ---------- ---------- Income from listed investments 91 54 Unfranked interest - 8 Franked dividends 2 13 Overseas dividends ---------- ---------- 93 75 ---------- ---------- Other operating income 18 13 Interest receivable - 7 Other income ---------- ---------- 18 20 --------------------- ---------- ---------- Total Income 111 95 --------------------- ---------- ---------- Total income comprises: Dividends 2 21 Interest 109 67 Other income - 7 --------------------- ---------- ---------- 111 95 --------------------- ---------- ---------- 3 Investment Management Fee (Unaudited) (Audited) Revenue Capital Total Revenue Capital Total 2006 2006 2006 2005 2005 2005 £'000 £'000 £'000 £'000 £'000 £'000 ----------- ------- ------- ------- ------- ------- ------- Periodic fee - 519 519 - 336 336 Performance fee - 168 168 - - - Irrecoverable VAT thereon - 65 65 - 55 55 ----------- ------- ------- ------- ------- ------- ------- Total - 752 752 - 391 391 ----------- ------- ------- ------- --- ------- ------- ------- 4 Earnings per Ordinary share Total earnings per Ordinary share of 30.1p is based on total earnings attributable to equity shareholders of £8,284,000 (2005: £3,063,000 loss). Revenue loss per Ordinary share of 1.9p is based on the revenue loss attributable to equity shareholders of £510,000 (2005: £423,000 loss). Capital gain per Ordinary share of 32.0p is based on the capital gain attributable to equity shareholders of £8,794,000 (2005: £2,640,000 loss as restated). Total earnings, revenue loss and capital gain per share are based upon the weighted average number of Ordinary shares throughout the year of 27,490,000 (2005: 30,100,000). 5 Net Asset Value per Ordinary share The net asset value per Ordinary share is based on the net assets attributable to equity shareholders of £36,556,000 (2005: £30,449,000 as restated) and on 27,740,000 (2005: 30,100,000) Ordinary shares in issue at 31 March 2006. 6 Restatement of Balances as at and for the year ended 31 March 2005 At 1 April 2005 the Company adopted International Financial Reporting Standards. In accordance with IFRS 1 (First Time Adoption of Financial Reporting Standards) the following is a reconciliation of the results as at and for the year ended 31 March 2005, previously reported under the applicable UK Accounting Standards and the SORP, to the restated IFRS results. (a) Reconciliation of the Balance Sheet as at 31 March 2005 ------------------- ----------- ----------- ----------- (Audited) Effect of Restated 31 Previously transition to March 2005 reported 31 IFRS £'000 March 2005 £'000 £'000 ------------------- ----------- ----------- ----------- Investments (see 1 below) 30,492 (89) 30,403 Current assets 340 - 340 Creditors: amounts falling due within one year (294) - (294) ------------------- ----------- ----------- ----------- Total assets less current liabilities 30,538 (89) 30,449 ------------------- ----------- ----------- ----------- Capital and reserves Called up share capital Ordinary shares 7,525 - 7,525 Special reserve 21,679 - 21,679 Capital reserve - realised 3,772 (3,772) - Capital reserve - unrealised (1,269) 1,269 - Capital reserve (see 1 below) - 2,414 2,414 Revenue reserve (1,169) - (1,169) ------------------- ----------- ----------- ----------- 30,538 (89) 30,449 ------------------- ----------- ----------- ----------- Note to the reconciliation 1 Investments are classified as held at fair value under IFRS and are carried at bid prices which total their fair value of £30,403,000. Previously, under UK GAAP, they were carried at mid prices. (b) Reconciliation of the Statement of Total Return to the Income Statement for the period ended 31 March 2005 Under IFRS the Income Statement is the equivalent of the Statement of Total Return as reported previously. ---------------------------- ---------- ----------- 2005 EPS Impact Pence £'000 ---------------------------- ---------- ----------- Total transfer from reserve per Statement of Total Return (3,079) - Change from mid to bid basis at 31 March 2004 (see 1 below) 105 0.35 Change from mid to bid basis at 31 March 2005 (see 1 below) (89) (0.30) ---------------------------- ---------- ----------- Net loss per Income Statement (3,063) 0.05 ---------------------------- ---------- ----------- Note to the reconciliation 1 The portfolio valuation at 31 March 2004 and 31 March 2005 are required to be valued at fair value under IFRS. Using this basis, there will be a reduction from the previous valuation of £105,000 and £89,000 respectively. (c) Reconciliation of the Cash Flow Statement for the year ended 31 March 2005 ------------------- ----------- ----------- ----------- (Audited) Effect of Adjusted cash Previously transition to flows 2005 reported cash IFRS £'000 flows 2005 £'000 £'000 ------------------- ----------- ----------- ----------- Net cash outflow from operating activities (see 1 below) (705) (7) (712) Returns on investments and servicing of finance (see 1 below) (8) 8 - Taxation (see 1 below) 1 (1) - Net cash inflow from financial investment 990 - 990 ------------------- ----------- ----------- ----------- Net cash inflow before financing 278 - 278 Financing (see 1 below) - - - ------------------- ----------- ----------- ----------- Increase in cash 278 - 278 ------------------- ----------- ----------- ----------- Note to the reconciliation 1 Servicing of finance and taxation have now been analysed within operating activities. 7 Restatement of Opening Balances as at 31 March 2004 At 1 April 2005 the Company adopted International Financial Reporting Standards. In accordance with IFRS 1 (First Time Adoption of Financial Reporting Standards) the following is a reconciliation of the results as at and for the year ended 31 March 2004, previously reported under the applicable UK Accounting Standards and the SORP, to the restated IFRS results. ------------------- ----------- ----------- ----------- (Audited) Effect of Restated 31 Previously transition to March 2004 reported 31 IFRS £'000 March 2004 £'000 £'000 ------------------- ----------- ----------- ----------- Investments (see 1 below) 33,748 (105) 33,643 Current assets 331 - 331 Creditors: amounts falling due within one year (462) - (462) ------------------- ----------- ----------- ----------- Total assets less current liabilities 33,617 (105) 33,512 ------------------- ----------- ----------- ----------- Capital and reserves Called up share capital Ordinary shares 7,525 - 7,525 Special reserve 21,679 - 21,679 Capital reserve - realised 8,079 (8,079) - Capital reserve - unrealised (2,920) 2,920 - Capital reserve - 5,054 5,054 (see 1 below) Revenue reserve (746) - (746) ------------------- ----------- ----------- ----------- 33,617 (105) 33,512 ------------------- ----------- ----------- ----------- Note to the reconciliation 1 Investments are classified as held at fair value under IFRS and are carried at bid prices which total their fair value of £33,643,000. Previously, under UK GAAP, they were carried at mid prices. 8 Comparative information This preliminary statement is not the Company's statutory accounts. The above results for 2006 have been agreed with the Auditors and are an abridged version of the Company's full draft accounts, which have not yet been approved, audited or filed with the Registrar of Companies. The 2006 accounts have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Certain figures for the prior year have been restated to reflect policy changes arising out of the adoption of IFRS. The statutory accounts for the year end 31 March 2005 have been delivered to the Registrar of Companies and those for 31 March 2006 will be despatched to shareholders shortly. The 2005 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 Company Secretary 6 June 2006 - ENDS - This information is provided by RNS The company news service from the London Stock Exchange

Companies

Biotech Growth Trust (The) (BIOG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today