Final Results

City Natural Res High Yield Tst PLC 12 September 2003 CITY NATURAL RESOURCES HIGH YIELD TRUST PLC (Formerly the Aberdeen Latin American Investment Trust PLC) PRELIMINARY ANNOUNCEMENT OF UNAUDITED ANNUAL RESULTS For the year ended 30 June 2003 Chairman's Statement In the year ended 30 June 2003 the net asset value per Ordinary share fell by 10.4% to 51.62p. This compares with a rise of 1.0% in the MSCI EMF Latin American Index in sterling terms over the same period. No dividend in respect of the year has been declared or proposed. Following the changes referred to below, the mid market price of the Company's Ordinary shares increased by 10.9% over the year because of the narrowing of the discount to net asset value from 20.2% at 30 June 2002 to 1.2% at 30 June 2003. You will of course be aware that the investment objective of the Company was totally changed following approval by Shareholders of the Continuation Proposal regarding the future of the Company on 26 June 2003, which included the change in name of the Company from Aberdeen Latin American Investment Trust PLC to City Natural Resources High Yield Trust plc. Hitherto the investment objective had been to provide shareholders with long-term capital growth through investment in Latin America. The new investment objective as set out in the Continuation Proposal is to provide Shareholders with capital growth and income from a portfolio of mining and resource equities and of mining, resource and industrial fixed interest securities. In the circumstances therefore I have not dealt with the investment situation in Latin America over the last year. The consequent restructuring of the portfolio of the Company began on 26 June 2003 and was broadly completed by the end of July 2003 and is dealt with in detail in the Manager's Review in the Annual Report & Accounts. Management I would like to welcome the new Manager, Midas Capital Partners Limited, in the person of Richard Lockwood. He has considerable experience in fund management and has a proven successful history in managing City Merchants High Yield Trust plc. Directors As a result of the reorganisation process, there have been changes at the Company's board level. Radhika Ajmera, Christopher Edge and Christopher Little resigned as non-executive directors immediately after the Extraordinary General Meeting on 26 June 2003. I would like to take this opportunity to thank them for their services to the Company over many years. On the same date I am pleased to report that Adam Cooke and Michael Coulson were appointed as non-executive Directors. Adam is a global partner of AMVESCAP Plc with much experience of investment trusts and Michael has over 30 years' experience as an analyst of the mining and gold industries. I look forward to the invaluable experience that both will bring to the Company and I hope that you will vote for their re-election at the forthcoming Annual General Meeting. Economic Overview Higher yielding equities and corporate bonds have enjoyed a renaissance of investor interest over the past couple of years, reflecting the 'flight to income'. Although early days in any potential recovery, investors are closely watching developments and economic statistics coming out of the United States with increasing optimism. Current independent estimates for UK growth in 2003 are varied and lower than previously, falling to below 2%. However even this level of growth looks comparatively good against our European neighbours. In order to avoid a further threat to the UK economy there is a need for business investment to pick up and a recovery in global trade. So far the strongest area for trade is the re-emergence of the Asian economies (excluding Japan). The possibility of increased economic activity, particularly in China, makes the resource sector an attractive area to have exposure. By providing the raw materials and building blocks for growth, the Company should benefit. Furthermore Gold's resurgence as a safe-haven commodity in times of trouble has resulted in the Company investing a sizeable part of its assets to this area under the new mandate. Outlook As I have said, the new investment objective of the Company is to provide Shareholders with capital growth and income from a portfolio of mining and resource equities and of mining, resource and industrial fixed interest securities. With a broad exposure across different regions and a substantial exposure to Gold stocks we believe the risk profile of the Company is well placed to benefit from market developments, whether that of economic recovery or a return to risk aversion. I look forward with optimism for a strong performance this current year and beyond. The new Manager will be actively encouraged by the Board to market the Company with the objective of increasing its size through further issues of shares. Since the year end the Company's shares have traded at or above net asset value and resource stocks have enjoyed a re-rating. I look forward to reporting progress in our efforts to grow the Company's assets in the course of the next few months. As previously indicated in my letter to Shareholders of 3 June 2003, the Company will begin paying quarterly dividends on the Ordinary shares in the first quarter of 2004. Bryan N Lenygon Chairman 12 September 2003 Statement of Total Return Year ended Year ended 30 June 2003 30 June 2002 (unaudited) (audited) ------- ------- ------ ------- ------- ------- Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 ------- ------- ------ ------- ------- ------- Losses on - (794) (794) - (3,783) (3,783) investments Income 348 172 520 375 - 375 Investment (30) (256) (286) (39) (118) (157) management fee Other (255) (147) (402) (236) - (236) expenses Exchange (9) (27) (36) 5 (40) (35) (losses)/ ------- ------- ------ ------- ------- ------- gains Net return 54 (1,052) (998) 105 (3,941) (3,836) before finance costs and taxation Interest - (40) (40) (3) - (3) payable and ------- ------- ------ ------- ------- ------- similar charges Net return on 54 (1,092) (1,038) 102 (3,941) (3,839) ordinary activities before taxation Taxation on (41) (121) (162) (49) 18 (31) ordinary ------- ------- ------ ------- ------- ------- activities Net return 13 (1,213) (1,200) 53 (3,923) (3,870) attributable to equity Shareholders Dividend in - - - - - - respect of ------- ------- ------ ------- ------- ------- equity shares Transfer to/ 13 (1,213) (1,200) 53 (3,923) (3,870) (from) ======= ======= ====== ======= ======= ======= reserves Return per 0.07 (6.07) (6.00) 0.27 (19.62) (19.35) Ordinary share ======= ======= ====== ======= ======= ======= (pence) The revenue column of this statement represents the revenue account of the Company All revenue and capital items derive from continuing operations Balance Sheet ---------- ---------- As at As at 30 June 2003 30 June 2002 (unaudited) (audited) ---------- ---------- £'000 £'000 ---------- ---------- Fixed assets Investments 8,291 10,841 ---------- ---------- Current assets Debtors 1,404 161 Cash at bank and in hand 1,554 641 ---------- ---------- 2,958 802 Creditors: amounts falling due within one (924) (118) year ---------- ---------- Net current assets 2,034 684 ---------- ---------- Net assets 10,325 11,525 ========== ========== Share capital and reserves Called-up share capital 5,000 5,000 Share premium account 11,642 11,642 Warrant reserve 2,353 2,353 Other reserves: Capital reserve - realised (8,376) (4,099) Capital reserve - unrealised (664) (3,728) Revenue reserve 370 357 ---------- ---------- Equity Shareholders' funds 10,325 11,525 ========== ========== Net asset value per Ordinary share (pence) 51.62 57.62 ========== ========== Cash Flow Statement ------- ------- Year ended Year ended 30 June 2003 30 June 2002 (unaudited) (audited) ------------ ------------ £'000 £'000 £'000 £'000 ------- ------- ------- ------- Net cash inflow/(outflow) from 2 (13) operating activities Servicing of finance Bank interest paid - (2) ------- ------- ------- ------- Net cash outflow from servicing of - (2) finance Taxation Net tax (paid)/recovered (132) 3 Financial investment Purchase of investments (4,671) (6,627) Sale of investments 5,741 7,505 ------- ------- ------- ------- Net cash inflow from financial 1,070 878 investment Equity dividends paid - (100) ------- ------- ------- ------- Increase in cash 940 766 ======= ======= ======= ======= Reconciliation of net cash flow to movements in net funds Increase in cash as above 940 766 Exchange movements (27) (40) ------- ------- ------- ------- Movement in net funds in the year 913 726 Opening net funds/(debt) 641 (85) ------- ------- ------- ------- Closing net funds 1,554 641 ======= ======= ======= ======= Notes: 1. Income The breakdown of income for the year to 30 June 2003 and 30 June 2002 was as follows: 2003 2002 Revenue Capital Total Revenue Capital Total Income from £'000 £'000 £'000 £'000 £'000 £'000 investments Overseas 333 - 333 369 - 369 dividends Other income Deposit 15 - 15 6 - 6 interest Refund of CGT - 172 172 - - - suffered ------ ------- ------- ------- ------- ------- Total income 348 172 520 375 - 375 ------ ------- ------- ------- ------- ------- 2. Return per Ordinary share 2003 2002 Revenue Capital Total Revenue Capital Total p p p p p p Basic 0.07 (6.07) (6.00) 0.27 (19.62) (19.35) ------- ------- ------- ------- ------- ------- The basic revenue return per Ordinary share is based on the net return after taxation of £13,000 (2002 - £53,000) and on 20,000,000 (2002 - 20,000,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. The basic capital return per Ordinary share is based on a net capital loss for the year of £1,213,000 (2002 - losses of £3,923,000) and on 20,000,000 (2002 - 20,000,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. Fully diluted returns calculated on the basis set out in Financial Reporting Standard 14 'Earnings per Share' indicate that the exercise of Warrants in issue would have no dilutive effect on returns. 3. Net asset value per Ordinary share The net asset value per share and the net asset values attributable to Ordinary Shareholders at the year end calculated in accordance with the Articles of Association were as follows: Net asset value Net asset values per share attributable attributable 2003 2002 2003 2002 p p £'000 £'000 Ordinary shares - basic 51.62 57.62 10,325 11,525 ------- -------- ------- ------- The movements during the year of the assets attributable to Ordinary Shareholders were as follows: 2003 2002 £'000 £'000 Net assets attributable at 1 July 11,525 15,395 Losses on investments (794) (3,783) Costs charged to capital (net of taxation) (392) (100) Exchange losses (27) (40) Revenue on ordinary activities after taxation 13 53 ------ ------- Net assets attributable at 30 June 10,325 11,525 ------ ------- The basic net asset value per Ordinary share is based on net assets and on 20,000,000 (2002 - 20,000,000) Ordinary shares, being the number of Ordinary shares in issue at the year end. The fully diluted net asset value per Ordinary share for both 2003 and 2002 has not been calculated as the Warrant exercise price, being 85p, was higher than the basic net asset value throughout the year. 4. Financial information The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 June 2003 or 30 June 2002. The financial information for 2002 is derived from the statutory accounts for 2002, which have been delivered to the Registrar of Companies. The auditors have reported on the 2002 accounts; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2003 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting. 5. Annual Report Copies of the Annual Report will be posted to Shareholders in early October and further copies may be obtained from the registered office, One Bow Churchyard, Cheapside, London EC4M 9HH. Aberdeen Asset Management PLC, Secretaries 12 September 2003 This information is provided by RNS The company news service from the London Stock Exchange

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