Final Results

Henderson High Income Trust PLC 23 February 2001 23 February 2001 HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 Highlights * Successful capital reorganisation * Net asset value per unit up 6.9% * Total dividend for the year increased by 20.4% to 8.55p * Expected dividend for 2001 of 9.90p Extracts from the Chairman's Statement: Assets and Performance I am pleased to be able to present clearly to shareholders the benefits of the capital reorganisation effected in August last year and the far more favourable performance of the Company's assets. The key aspect of the capital reorganisation was to improve the yield on the shares and the Company has duly increased the total dividend for 2000 by 20% over that paid in respect of 1999. The Board hoped that this action would lead to an increased demand for the Company's shares and, consequently, a narrowing of the discount to net asset value at which the shares trade. Over the course of the year progress was made and the discount on the units (prior to 16 August 2000 the ordinary shares of 25p) fell from 15.1% to 4.6% and has narrowed further since the year end. This narrowing of the discount has had a material effect on the market price, which rose 20.1% over the year. The improvement in asset performance that I reported at the half year continued through to the end of the year. A low exposure to technology stocks, and substantial holdings in defensive companies, has led to a rise in the Company's assets in a year when the broader UK stockmarket fell in value. The net asset value total return on the units was 11.1%, compared to a negative return of 5.9% from the FTSE All-Share Index. -MORE- - 2 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 Dividends The Board has declared a fourth interim dividend of 2.475p per ordinary share, making a total of 8.55p for the year. This represents a rise of 20% against the previous year, clearly demonstrating the benefit for shareholders of the capital reorganisation. The Board intends to pay a minimum of 9.9p for the current year, representing a further increase in the annual dividend of 15.8%. The Company has built significant revenue reserves over the years, which has enabled it to fund the new dividend rate despite only receiving the increased funds from the reorganisation late in the year. Prospects The UK has entered the stage in an economic cycle when interest rates are being cut to stimulate growth. Falling interest rates have traditionally been favourable for stock markets and this should be the case in this cycle. While corporate profits are likely to show only modest growth this year, the valuation of the market is already discounting a slowdown and shares are cheap, especially relative to bonds. The Board continues to feel that a balanced portfolio of bonds and equities is the best way to provide investors with a high level of income and the prospect of capital growth. There will undoubtedly be challenges in the year ahead but we feel that the Company's portfolio is attractive and look to the future with confidence. Sir Anthony Beaumont-Dark -MORE- -3- HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 Group Statement of Total Return (incorporating the revenue account) for the year ended 31 December 2000 (Restated*) Year ended 31 December Year ended 31 December 2000 1999 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from - 7,693 7,693 - 173 173 investments Income from fixed asset 4,804 - 4,804 4,770 - 4,770 investments Other interest receivable and 161 - 161 38 - 38 similar income ---------- ---------- ---------- ---------- -- Gross revenue and capital gains 4,965 7,693 12,658 4,808 173 4,981 Management fee (357) (312) (669) (421) (211) (632) Other administrative expenses (157) - (157) (148) - (148) ---------- ---------- ---------- ---------- -- Net return/(loss) on ordinary activities 4,451 7,381 11,832 4,239 (38) 4,201 before interest payable and taxation Interest payable (98) (248) (346) (75) (75) (150) ---------- ---------- ---------- ---------- -- Net return/(loss) on ordinary 4,353 7,133 11,486 4,164 (113) 4,051 activities before taxation Taxation on net return/(loss) on (216) 168 (48) (150) 87 (63) ordinary activities ---------- ---------- ---------- ---------- -- Net return/(loss) on ordinary activities after taxation 4,137 7,301 11,438 4,014 (26) 3,988 Provision for redemption of the - (784) (784) - - - zero dividend preference shares in the subsidiary ---------- ---------- ---------- ---------- -- Net return/(loss) attributable to the ordinary shareholders 4,137 6,517 10,654 4,014 (26) 3,988 ---------- ---------- ---------- ---------- -- Dividends: ordinary shares 1st interim paid of 1.80p (1999: (947) - (947) (921) - (921) 1.75p) 2nd interim paid of 1.80p (1999: (947) - (947) (921) - (921) 1.75p) 3rd interim declared of 2.475p (1,302) - (1,302) (947) - (947) (1999: 1.80p) 4th interim proposed of 2.475p (1,302) - (1,302) (947) - (947) (1999: 1.80p) ---------- ---------- ---------- ---------- -- (4,498) - (4,498) (3,736) - (3,736) ---------- ---------- ---------- ---------- -- Transfer (from)/to reserves (361) 6,517 6,156 278 (26) 252 ====== ====== ====== ====== ====== ====== Return/(loss) per ordinary share 7.86p 12.39p 20.25p 7.63p (0.05)p 7.58p ====== ====== ====== ====== ====== ====== Return per zero dividend preference share in the - 1.49p 1.49p subsidiary ====== ====== ====== Return per unit 7.86p 13.88p 21.74p ====== ====== ====== The revenue columns of this statement represent the revenue accounts of the Group (1999: Company). * Restated for the change in accounting policy (see note 3). -MORE- - 4 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 Balance Sheets at 31 December 2000 Group Company Company 2000 2000 1999 £'000 £'000 £'000 Fixed asset investments Listed in the United Kingdom 123,713 123,713 97,139 Subsidiary undertaking - - - ---------- ---------- -------- 123,713 123,713 97,139 ---------- ---------- -------- Current assets Debtors 4,049 4,049 1,214 Bank balances and short term deposits 7,829 7,829 1,326 ---------- ---------- -------- 11,878 11,878 2,540 Creditors: amounts falling due within one year (36,584) (36,584) (7,056) ---------- ---------- -------- Net current liabilities (24,706) (24,706) (4,516) ---------- ---------- -------- Total assets less current liabilities 99,007 99,007 92,623 Creditors: amounts falling due after more than one year Amounts owed to group undertaking - (27,086) - Zero dividend preference shares in the subsidiary (27,086) - - Provisions for liabilities and charges - - (1) ---------- ---------- ---------- Total net assets 71,921 71,921 92,622 ====== ====== ===== Capital and reserves Share capital 2,630 2,630 13,151 Capital redemption reserve 26,302 26,302 - Other capital reserves Share premium 4,935 4,935 20,716 Realised reserve 19,222 19,222 40,372 Unrealised appreciation 17,497 17,497 16,687 Revenue reserve 1,335 1,335 1,696 ---------- ---------- ---------- Equity shareholders' funds 71,921 71,921 92,622 ====== ====== ====== Net asset value per ordinary share 136.72p 136.72p 176.07p ====== ====== ====== Funds attributable to: Ordinary shares 71,921 92,622 Zero dividend preference shares in the subsidiary 27,086 - ---------- ---------- 99,007 92,622 ====== ====== Net asset value per: Ordinary share 136.72p 176.07p Zero dividend preference share in the subsidiary 51.49p - ---------- ---------- Unit (1999: ordinary share of 25p) 188.21p 176.07p ====== ====== - MORE - - 5 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 Group Cash Flow Statement for the year ended 31 December 2000 2000 2000 1999 1999 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 3,338 3,991 Servicing of finance Bank overdraft and loan interest paid (272) (125) Taxation Taxation recovered 204 47 Financial investment Purchase of investments (40,986) (29,331) Sale of investments 27,350 28,311 ---------- ---------- Net cash outflow from financial investment (13,636) (1,020) Equity dividends paid (3,788) (3,682) ---------- --------- Net cash outflow before financing (14,154) (789) Financing Proceeds from the liquidation of a 3 - subsidiary Expenses of capital reorganisation (555) - Increase in debt 13,400 1,994 ----------- ---------- Net cash inflow from financing 12,848 1,994 ---------- --------- (Decrease)/increase in cash (1,306) 1,205 ====== ====== Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash as above (1,306) 1,205 Cash inflow from increase in debt (13,400) (1,994) Exchange movements - (2) --------- --------- Movement in net debt (14,706) (791) Net debt at 1 January (3,674) (2,883) ---------- ---------- Net debt at 31 December (18,380) (3,674) ====== ====== -MORE- - 6 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 Notes : 1. Capital reorganisation On 16 August 2000 the Company's capital was reorganised. In place of the ordinary shares of 25p each in issue at 15 August 2000, shareholders received one ordinary share of 5p each in the Company and one zero dividend preference share of 50p each in the new subsidiary, Henderson High Income Trust Securities plc. Shareholders can hold their investment in the form of units, each unit comprising one ordinary share of 5p each in the parent and one zero dividend preference share of 50p each in the subsidiary. The comparative figures relate to the former ordinary shares of 25p each. The zero dividend preference shares had an initial capital entitlement of 50p per share at 17 August 2000 which increases at a daily rate, equivalent to a compound annual rate of 8.2%, so as to reach a final capital entitlement of 74.87p per share on 30 September 2005. At 31 December 2000 there were in issue 52,603,865 ordinary shares of 5p each in the parent and 52,603,865 zero dividend preference shares of 50p each in the subsidiary (1999: 52,603,865 ordinary shares of 25p each in the Company). 2. Return per share a) Returns per ordinary share Revenue return per ordinary share is based on the earnings attributable to the ordinary shares of £4,137,000 (1999: £4,014,000) and on the 52,603,865 ordinary shares in issue during the year (1999: 52,603,865). Capital return per ordinary share is based on the net capital gains for the year of £6,517,000 (1999: capital losses of £26,000) and on the 52,603,865 ordinary shares in issue during the year (1999: 52,603,865). Prior to the capital reorganisation on 16 August 2000 the ordinary shares in issue were ordinary shares of 25p each; thereafter they were ordinary shares of 5p each. b) Returns per zero dividend preference share Capital return per zero dividend preference share reflects the predetermined growth in capital entitlement for the period since the capital reorganisation (i.e. from 17 August 2000 to the year end) of £ 784,000 based on the 52,603,865 zero dividend preference shares in issue. c) Returns per unit Revenue return per unit, each unit consisting of one ordinary share of 5p each in the Company and one zero dividend preference share of 50p each in the subsidiary, amounts to 7.86p per unit. Capital return per unit, each unit consisting of one ordinary share of 5p each in the Company and one zero dividend preference share of 50p each in the subsidiary, amounts to 13.88p per unit. -MORE- - 7 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 3. Change in accounting policy In accordance with Financial Reporting Standard 16 Current Taxation ('FRS 16'), which became effective for accounting periods ending on or after 23 March 2000, franked investment income is now shown net of the related tax credits. The comparative figures for the year ended 31 December 1999 have been restated accordingly. Adoption of FRS 16 has no effect on the revenue or capital returns per ordinary share, nor on the net asset value per ordinary share. 4. Group accounts The Group accounts consolidate the accounts of the Company and its wholly owned subsidiary, Henderson High Income Trust Securities plc, from the date of its incorporation on 12 April 2000. The comparative figures presented are those of the parent company only as there were no subsidiaries at 31 December 1999. 5. Expenses All expenses are accounted for an accruals basis. The Board's expectation is that over the long term three quarters of the Group's investment returns will be in the form of capital gains. From 1 July 2000 the Group has charged to capital 75% of its finance costs and management fees (to the extent that the management fees relate to the maintenance or enhancement of the valuation of investments). Prior to 1 July 2000 the Company charged to capital 50% of both finance costs and management fees (to the extent that the management fees related to the maintenance or enhancement of the valuation of investments). 6. Dividend A fourth interim dividend of 2.475p per ordinary share of 5p each (1999: 1.80p per ordinary share of 25p each) will be paid on 30 April 2001 to shareholders on the register on 23 March 2001. 7. 2000 accounts The preliminary figures for the year ended 31 December 2000 are an extract from the latest accounts of the Group. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 8. 1999 accounts The figures and financial information for the year ended 31 December 1999 are extracted from the latest published accounts of the Group and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain statements under either section 237(2) or section 237(3) of the Companies Act 1985. -MORE- - 8 - HENDERSON HIGH INCOME TRUST plc Unaudited Preliminary Results for the year ended 31 December 2000 9. Annual Report and Annual General Meeting The full annual report and accounts will be posted to shareholders in March and copies will be available from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. The Annual General Meeting will be held on Wednesday 25 April 2001. - ENDS - For further information please contact : Alex Crooke or Vicki Staveacre Portfolio Manager The Press Office Henderson High Income Trust plc Henderson Investors Telephone: 0207 410 4447 Telephone: 0207 410 4222 James Henderson Deputy Portfolio Manager Henderson High Income Trust plc Telephone: 0207 410 4370

Companies

Henderson High Income Trust (HHI)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today