Interim Results

Finsbury Life Sciences Inv Tst PLC 5 December 2001 Finsbury Life Sciences Investment Trust PLC Preliminary results for the year ended 30 September 2001 Finsbury Life Sciences Investment Trust PLC today announces preliminary results for the half year ended 30 September 2001. As at 30/09/01 As at 31/03/01 % (unaudited) (audited) increase/ decrease Net assets (£m) 35.9m 49.2m -27.0% Net asset value per share 119.4p 163.6p -27.0% (pence) Share price (pence) 92.5p 159.0p -41.8% Discount (%) 22.5% 2.8% -- FTSE-All Share Index 2,299.8 2,628.7 - 12.5% Lehman's UK/Europe 253.2 376.7 -32.8% Biotechnology Index No interim dividend is proposed. Chairman John Sclater, commented: 'The half-year covered by this interim report has been extremely disappointing for equity investors, and biotechnology investors in particular. Biotechnology is a sector that has always been particularly susceptible to the vagaries of investor sentiment. This is particularly marked in sharp equity market reversals when investors seek 'safe havens'. However, we have seen such a reaction several times in the past, and on each occasion it has provided patient investors with opportunity to accumulate stock at favourable prices. The long-term outlook for the biotechnology industry has not changed as a result of recent events and remains positive. Indeed it may turn out that biology is the field of pre-eminent scientific advance in the first decades of the new millennium, as previously intractable diseases reveal their secrets to advances in genomic and proteomic technologies. The investment portfolio is well positioned for the year ahead and we remain confident that biotechnology will provide significant rewards to long term investors.' For and on behalf of Close Finsbury Asset Management Limited - Secretary 4 December 2001 - ENDS - Finsbury Life Sciences Investment Trust PLC Preliminary results for the year ended 30 September 2001 The following are attached: * Chairman's Statement * Consolidated Balance Sheet * 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 Finsbury Life Sciences Investment Trust PLC Chairman's Statement Performance During the six months to 30 September 2001 the Company's net asset value per share ('NAV') declined from 163.6p to 119.4p, a fall of 27.0%. This compares with decreases of 32.8% in the Lehman's UK and European Biotechnology Index and 12.5% in the FTSE All-Share Index (total return), which is our benchmark index. Since the Company was launched in June 1997 NAV has increased by 23.1% against a decline of 26.3% in the Lehman's UK and European Biotechnology Index and a rise of 19.3% in the FTSE All-Share Index (total return). The share price has reflected poor investor sentiment towards the sector and during the period it fell 41.8% from 159.0p to 92.5p. This movement has led to the share price moving from a 2.8% discount to the NAV to a discount of 22.5%. Since the period end there has been a rally and at 3 December 2001 the NAV had increased to 138.8p whilst the share price was 136.0p. Results and Dividend The total deficit for the six months ended 30 September 2001 was 41.1p per share (2000: return of 27.9p). This was made up of a revenue deficit of 0.3p per share (2000: return of 0.2p) and a capital deficit of 43.8p per share (2000: return of 27.7p). The companies in which we invest typically provide little, if any, income and accordingly no interim dividend has been declared (2000: nil). Major shareholders In July The Equitable Life sold its remaining stake of 21.6% in the Company; these shares were successfully placed with a variety of institutions. In the first few years of the Company's life The Equitable Life held just under 50% of the shares and we view the broader shareholder base to be beneficial. Review of year and outlook The half-year covered by this interim report has been extremely disappointing for equity investors, and biotechnology investors in particular. Even before the tragic events of the 11 September stocks were in a retreat bordering on a rout. Biotechnology is a sector that has always been particularly susceptible to the vagaries of investor sentiment. This is particularly marked in sharp equity market reversals when investors seek 'safe havens'. It is paradoxical that in times such as these investors will pay considerable premiums for the comfort of major pharmaceuticals, but treat biotechnology Finsbury Life Sciences Investment Trust PLC Chairman's Statement (continued) companies with such suspicion. However, we have seen such a reaction several times in the past, and on each occasion it has provided patient investors with opportunity to accumulate stock at favourable prices. At 30 September 2001, we had significant cash resources and have been able to invest in companies at attractive prices. The long-term outlook for the biotechnology industry has not changed as a result of recent events and remains positive. Indeed it may turn out that biology is the field of pre-eminent scientific advance in the first decades of the new millennium, as previously intractable diseases reveal their secrets to advances in genomic and proteomic technologies. The investment portfolio is well positioned for the remainder of the year and beyond and we remain confident that biotechnology will provide significant rewards to long term investors. John Sclater, Chairman John Sclater Chairman 4 December 2001 Finsbury Life Sciences Investment Trust PLC Consolidated Statement of Total Return incorporating the revenue account for the six months ended 30 September 2001 (unaudited) (unaudited) (audited) Six months to Six months ended Year ended 30 September 2001 30 September 2000 31 March 2001 Revenue Capital Total Revenue Capital Total Revenue Capital Total £000 £000 £000 £000 £000 £000 £000 £000 £000 (Losses) - (12,939) (12,939) - 10,372 10,372 - (4,430) (4,430) /gains on investments Losses - (6) (6) - (40) (40) - (69) (69) on currency balances Income 108 - 108 281 - 281 446 - 446 (see note 2) Investment - (255) (255) - (1,994) (1,994) - (772) (772) management fees (see note 3) Other (181) - (181) (149) - (149) (340) - (340) expenses Net (73) (13,200) (13,273) 132 8,338 8,470 106 (5,271) (5,165) (deficit) /return before finance costs and taxation Interest (5) - (5) (77) - (77) (7) (101) (108) payable and similar charges (Deficit) (78) (13,200) (13,278) 55 8,338 8,393 99 (5,372) (5,273) /return on ordinary activities before taxation Taxation (2) - (2) (3) - (3) (3) - (3) on ordinary activities (Deficit) (80) (13,200) (13,280) 52 8,338 8,390 96 (5,372) (5,276) /return on ordinary activities after taxation Dividend - - - - - - (60) - (60) on ordinary shares (equity) Transfer (80) (13,200) (13,280) 52 8,338 8,390 36 (5,372) (5,336) (from)/to Reserves (Deficit) (0.3p)(43.8p) (44.1p) 0.2p 27.7p 27.9p 0.3p (17.8)p (17.5)p /return per ordinary share - pence (note 1) Finsbury Life Sciences Investment Trust PLC Consolidated Balance Sheet as at 30 September 2001 (unaudited) (unaudited) (audited) 30 September 30 September 31 March 2001 2000 £'000 £'000 £ '000 Fixed asset - investments 30,942 58,484 46,806 Current assets Debtors 180 20 359 Cash at bank 5,209 8,648 3,271 5,389 8,668 3,630 Creditors Amounts falling due within (382) (4,197) (1,207) one year Net current assets 5,007 4,471 2,423 Net assets 35,949 62,955 49,229 Capital and reserves Called up share capital 7,525 7,525 7,525 Share premium 21,679 21,679 21,679 Capital reserve - realised 18,837 12,483 18,149 Capital reserve - unrealised (12,237) 21,027 1,651 Revenue reserve 145 241 225 Total shareholders' funds 35,949 62,955 49,229 Net asset value per ordinary 119.4p 209.2p 163.6p share Finsbury Life Sciences Investment Trust PLC Consolidated Cash Flow Statement For the six months ended 30 September 2001 (unaudited) (unaudited) (audited) Six month Six month Year ended ended ended 30 September 30 September 31 March 2001 2000 2001 £000 £000 £000 Net cash flow from operating (378) (3,864) (4,263) activities Servicing of finance Interest paid (3) (68) (108) Financial investment Purchases of investments (5,060) (8,492) (25,840) Sales of investments 7,456 16,266 30,694 Net cash inflow from financial investment 2,396 7,774 4,854 Equity Dividends Paid (60) - - Net cash inflow before financing 1,955 3,842 483 Financing Loan - 2,000 - Net cash inflow from financing - 2,000 - Increase in cash 1,955 5,842 483 Finsbury Life Sciences Investment Trust PLC Notes to the preliminary results for the six months ended 30 September 2001 1. Return per ordinary shares Revenue return per ordinary share is calculated by dividing the net revenue deficit of £80,000 (six months ended 30 September 2000: return of £52,000; year ended 31 March 2001: return of £96,000) by 30,100,000 (30 September 2000: 30,100,000; 31 March 2001: 30,100,000) being the number of ordinary shares in issue throughout the period. Capital return per ordinary share is calculated by dividing the net capital loss available for ordinary shareholders of £ 13,200,000 (six months ended 30 September 2000: return of £8,338,000; year ended 31 March 2001: loss £5,372,000) by 30,100,000 ordinary shares as above. 2. Income 6 months to 6 months to 12 months to 30 September 30 September 31 March 2001 2000 2001 £'000 £'000 £'000 Investment income 60 230 335 Other income 48 51 111 108 281 446 3. Investment management fees 6 months to 6 months to 12 months to 30 September 30 September 31 March 2001 2000 2001 £'000 £'000 £'000 Periodic fee 224 369 660 Performance fee - 1,333 3 Irrecoverable VAT thereon 31 292 109 255 1,994 772 4. Comparative information The figures and financial information for the year ended 31 March 2001 are an extract from the latest published financial statements and do not constitute statutory financial statements for that year. Those financial statements 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) and 237(3) of the Companies Act 1985. The interim report has been neither audited nor reviewed by the Company's auditors. The interim report has been prepared using accounting policies that are consistent with those adopted in the statutory accounts for the year ended 31 March 2001.

Companies

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

Latest directors dealings

All directors dealings today