Final Results

Jupiter European Opps. Trust PLC 21 August 2003 Jupiter European Opportunities Trust PLC CHAIRMAN'S STATEMENT Although markets rallied strongly in the latter part of the year under review, overall equity returns were negative. Your Company once again achieved a performance that was significantly better than its benchmark index. Net asset value per share declined by 8.0%, from 91.12p to 83.82p, having been as low as 64.82p at the end of March. Over the year the FTSE World Europe ex-UK Index fell by no less than 21.2%. The share price, however, declined by 23.8% over the year, and the discount to net asset value therefore widened from less than 1% to 17.7% even though a total of 2,275,000 shares (2.74% of the total) were bought for cancellation at an average price of 54.6p and discount of 16.5%. Fund managers tend to concentrate on net asset value, shareholders on share price, and nobody enjoys the combination of a falling net asset value and widening discount. Buying shares for cancellation should reduce the discount; it also has the effect, from the fund manager's point of view, of adding to every portfolio holding without paying the bid-offer spread or dealing commission. Earlier share purchases were made at the suggestion of your manager who felt that the prices of many shares in the portfolio had fallen to absurd levels. Subsequent events have proved that his judgement was correct. By the time we report to you next year, investment trusts should have been granted permission to hold shares in "treasury", that is to buy shares in for subsequent reissue, as opposed to cancellation. This facility, if used correctly, should allow greater flexibility in the management of investment trust discounts. Over the year the Company has made use of its borrowing facilities, being de-geared during part of the market fall and running a leveraged position as prices recovered. Given that such borrowing was in euros, there was a small element of dilution for UK shareholders of the euro's strength against sterling, but the rise in share prices more than compensated. Over the year, the euro strengthened from 1.57 to 1.39 against sterling, an appreciation of over 11%. Indeed the euro's appreciation against the dollar, and dollar-linked currencies such as the Chinese renminbi, has been even more marked. Western European manufacturers of commodity-type products will find it hard to compete with low wage areas such as Eastern Europe or the Pacific Region. However your Company's portfolio is built around companies whose products or services are in universal demand and not especially price-sensitive, while the companies just happen to be based in Europe. Markets have regained much of their erstwhile confidence. The greatest risk to sentiment is arguably the threat of deflation, particularly in Europe; but Mr Bush is determined to be re-elected, Mr Greenspan has read the history books, and the US and UK authorities still have weapons in the locker to prevent the onset of deflation. All being well, they will carry Europe too. H M Priestley Chairman 21st August 2003 CONSOLIDATED STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT) for the year ended 31st May 2003 Audited 31st May 2003 31st May 2002 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Realised losses on investments - (468) (468) - (5,910) (5,910) Decrease/(increase) in unrealised ______- (5,670) (5,670) ______- 9,322 9,322 appreciation of fixed asset investments Total capital (losses)/gain on - (6,138) (6,138) - 3,412 3,412 investments Foreign exchange losses on loan - (1,798) (1,798) - (928) (928) Other exchange gains - 12 12 - 115 115 Income 2,942 - 2,942 815 - 815 Investment management fee (649) - (649) (744) - (744) Other expenses (382) ______- (382) (451) _____- (451) NET RETURN /(LOSS) BEFORE FINANCE COSTS AND 1,911 (7,924) (6,013) (380) 2,599 2,219 TAXATION Interest payable (471) ______- (471) (609) _____- (609) RETURN/(LOSS) ON ORDINARY ACTIVITIES BEFORE 1,440 (7,924) (6,484) (989) 2,599 1,610 TAX Tax on ordinary activities (229) ______- (229) (89) _____- (89) RETURN /(LOSS) ON ORDINARY 1,211 (7,924) (6,713) (1,078) 2,599 1,521 ACTIVITIES AFTER TAX RETURN/(LOSS) PER ORDINARY SHARE 1.48p (9.67)p (8.19)p (1.30)p 3.13p 1.83p 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 continuing operations. No operations were acquired or discontinued during the year. CONSOLIDATED BALANCE SHEET as at 31st May 2003 Audited 2003 2002 £'000 £'000 FIXED ASSETS Restated Investments 80,578 85,753 CURRENT ASSETS Investments 4,145 3,166 Debtors 1,689 450 Cash at bank 130 2,019 5,964 5,635 CREDITORS: amounts falling due within one year (1,950) (360) NET CURRENT ASSETS 4,014 5,275 TOTAL ASSETS LESS CURRENT LIABILITIES 84,592 91,028 CREDITORS: amounts falling due after more than one year (16,977) (15,454) NET ASSETS 67,615 75,574 CAPITAL AND RESERVES Called up share capital 807 829 Share premium 38,843 38,843 Special reserve 37,597 38,843 Redemption reserve 22 - Capital reserve - realised (7,541) (7,085) Capital reserve - unrealised (1,981) 5,487 Revenue reserve (132) (1,343) TOTAL EQUITY SHAREHOLDERS' FUNDS 67,615 75,574 NET ASSET VALUE PER ORDINARY SHARE 83.82p 91.12p CONSOLIDATED CASH FLOW STATEMENT for the year ended 31st May 2003 Audited 2003 2002 £'000 £'000 OPERATING ACTIVITIES Net cash inflow/(outflow) from operating activities 928 (2,010) _______ _______ SERVICING OF FINANCE Interest paid (525) (627) _______ _______ Net cash outflow from servicing of finance (525) (627) _______ ______ TAXATION Net tax paid (106) (311) _______ _______ CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of fixed asset investments (56,147) (48,223) Sale of fixed asset investments 53,950 50,013 _______ _______ Net cash (outflow)/inflow from capital expenditure and financial (2,197) 1,790 investment _______ ________ Net cash outflow before financing (1,900) (1,158) _______ _______ FINANCING Long term loan received 10,016 10,007 Long term loan repaid (10,291) (5,028) Shares repurchased and cancelled (1,246) - _______ _______ Net cash (outflow)/inflow from financing (1,521) 4,979 _______ _______ (Decrease)/increase in cash (3,421) 3,821 NOTES: 1. INCOME 2003 2002 Group Group £'000 £'000 INCOME FROM INVESTMENTS Dividend from United Kingdom companies 262 228 UK unfranked investment income 130 - Dividend from overseas companies 930 1,243 1,322 1,471 OTHER INCOME Deposit interest 31 45 Other - 52 Profit/(losses) on dealings by subsidiary 1,589 (753) 1,620 (656) TOTAL INCOME 2,942 815 TOTAL INCOME COMPRISES Dividends 1,192 1,471 Interest 161 45 Other income 1,589 (701) 2,942 815 INCOME FROM INVESTMENTS Listed in the UK 392 228 Listed overseas 930 1,243 1,322 1,471 2. RECONCILIATION OF CONSOLIDATED OPERATING PROFIT TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES 2003 2002 Group Group £'000 £'000 Net revenue before finance costs and taxation 1,911 (380) Decrease in prepayments and accrued income 9 36 Increase in current asset investments (979) (1,690) (Decrease)/increase in other creditors and accruals (13) 24 928 (2,010) 3. CREDITORS : AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2003 2002 Group & Company Group & Company £'000 £'000 Bank loan 16,977 15,454 The Company's bank loan is with Commerzbank AG, London with a loan facility available up to a maximum of 45% of the Group's total assets but not exceeding £30 million. The amount outstanding at 31st May 2003 was £16.977 million (€23.65 million) (2002: £15.454 million (€24.2 million)). The interest rate is variable and is linked to Euribor plus a margin of 0.8% p.a. The latest all-in rate being applied to the loan is 3.276% p.a. (2002: 4.198% p.a.) There have been no dividends paid during the year and the directors are not recommending the payment of a final dividend. On 23rd January 2001, pursuant to a special resolution passed on 17th January 2001, court approval was granted for the reduction of the share premium account by 50%. The reduction was made to enable the Company to repurchase its own shares from the funds held in the special reserve created as a result of the reduction in the share premium account as and when deemed appropriate by the board. The reduction in the share premium account by £38,843,000 and the creation of the special reserve has not previously been reflected in the accounts as a result of a preparatory error. This error had no effect on the statement of total return or on the balance sheet total, which were correctly stated in the audited accounts to 31st May 2002. The Annual General Meeting of the Company has been convened for Monday 22nd September 2003. The above financial information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. Statutory accounts for the year ended 31st May 2002, which contained an unqualified audit report, have been delivered to the Registrar of Companies. Statutory accounts for the year ended 31st May 2003 including an unqualified audit report will be delivered to the Registrar of Companies in due course. The Annual Report and Accounts are expected to be posted to all registered shareholders shortly and copies may be obtained from the registered office of the Company at 1 Grosvenor Place, London SW1X 7JJ. -------------------------- This information is provided by RNS The company news service from the London Stock Exchange

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