Interim Results - 11 Months to 30 September 1999

Guinness Flight Geared Inc&Gwth Tst 16 December 1999 PRELIMINARY ANNOUNCEMENT OF RESULTS FOR ELEVEN MONTHS TO 30 SEPTEMBER 1999 Chairman's Statement This second interim report for the Company represents my first opportunity to write to shareholders following its merger with The City of Oxford Investment Trust. The merger and successful fund raising which accompanied it has brought in a number of new shareholders to the Company. I am delighted to welcome them. In this report we are covering the Company's accounting period since flotation to 30 September 1999. Post tax revenues were £2.29m which has allowed a transfer to reserves of £166,618 after dividend payments to ordinary and income shareholders. The dividends paid are in line with the assumptions of the initial prospectus, being 10p per geared ordinary share and 7.17p per income share. Since the Company's structure includes a level of debt there are a number of ways to view the asset performance. We believe under normal circumstances it is most correct to look at the return on total assets including debt, and in future we will report returns in this way. However because of the reorganisation taking place over the balance sheet date of 30 September strict comparison on this basis during this specific period would be misleading. If we then turn to the net asset performance of the geared ordinary shares, this showed a rise of 29.51% to 98.61p from an initial asset value of 76.14p, after launch expenses. This represents a good start in a period more memorable for its volatility than for its economic or corporate news. For much of the time higher yielding companies, the core portion of the equity portfolio, have had to face a competitive trading environment together with weak support from institutional investors. The offsetting benefit has been that at crucial investment periods we have been able to acquire stocks cheaply. Hence the Company was fully invested when value orientated stocks rebounded strongly in the first half of 1999. The subsequent setback, while disappointing in itself, has again allowed the new funds raised on the merger to be invested at good prices. The split capital portfolio which makes up 30% of the Company's total assets is now largely in place. This has been achieved in the main by building holdings in some of the many undervalued instruments that predominate in the sector. We have also participated in some of the more attractive new issues that have led the split capital sector to expand so rapidly in the last year. The combined portfolio is now 95% invested. Its current positioning is skewed away from the more speculative areas of the market where ratings have reached very demanding levels, in favour of certain consumer and manufacturing sectors. Here lack of buying interest from many institutional investors has resulted in company valuations being well below their underlying worth. Continued steady economic growth next year, with possibly less pressure on interest rates, should enable these companies to return to favour. Fred Carr 16 December 1999 STATEMENT OF TOTAL RETURN (incorporating the Revenue Account) for the period 29 October 1998 to 30 September 1999 (Unaudited) Period Ended 30 September 1999 Revenue Capital Total £ £ £ Gains on investments - 2,448,077 2,448,077 Income 3,260,824 - 3,260,824 Investment management fee (123,557) (288,299) (411,856) Other expenses (90,955) - (90,955) -------- --------- --------- Net return before finance costs and taxation 3,046,312 2,159,778 5,206,090 Interest payable (331,820) (774,246) (1,106,066) --------- --------- --------- Return on ordinary activities before taxation 2,714,492 1,385,532 4,100,024 Tax on ordinary activities (425,580) 94,986 (330,594) -------- --------- --------- Return on ordinary activities after taxation 2,288,912 1,480,518 3,769,430 Dividends and other appropriations in respect of non-equity shares (1,636,426) (1,151,999) (2,788,425) -------- ------- --------- Return attributable to Geared Ordinary shareholders 652,486 328,519 981,005 Interim dividends paid to Geared Ordinary shareholders (605,000) - (605,000) -------- --------- --------- Transfer to Reserves 47,486 328,519 376,005 ======== ========= ========= Return per Geared Ordinary share 10.78p 5.43p 16.21p Return per Income share 7.73p - 7.73p Interim dividends paid per Geared Ordinary share 10.00p Interim dividends paid per Income share 7.165257p CONSOLIDATED BALANCE SHEET (UNAUDITED) AS AT 30 SEPTEMBER 1999 Proforma Balance Sheet at 8.10.99 Listed Investments 100,599,422 119,554,862 Current Assets: Debtors 40,387,486 Cash at bank 2,009,762 ---------- 42,397,248 Creditors: amounts falling due within one year 19,072,334 ---------- Net Current Assets 23,324,914 34,415,643 ----------- ----------- 123,924,336 153,970,505 Creditors: amounts falling due after more than one year - Bank Loan (18,150,000) (47,550,000) ----------- ----------- Net assets 105,774,336 106,420,505 ----------- ----------- CAPITAL AND RESERVES Called up share capital 5,152,182 5,152,182 Share premium 98,975,018 98,975,018 Redemption reserve 1,151,999 1,191,155 Capital reserve -realised (428,767) (234,700) Capital reserve -unrealised 757,286 1,170,232 Revenue reserve 166,618 166,618 ----------- ----------- Total shareholders' 105,774,336 106,420,505 Funds =========== =========== Net asset value per Income Share (excluding income) 100.00p 100.00p Net asset value per Zero Dividend Preference Share 107.62p 107.81p Net asset value per Geared Ordinary Share (excluding income) 98.61p 102.11p

Companies

Cambridge Cognition Holdings (COG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today