Final Results

Henderson Strata Investments PLC 22 December 2004 22 December 2004 HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2004 Highlights: • Net asset value per share up by 6.9%, ahead of the benchmark • UK investments perform strongly: up 12.1% over one year up 74.8% over two years • Change of investment policy proposed • Tender Offer and Matching Facility proposed The Chairman's Statement: Review of the year It has been a more measured year after the strong returns we reported twelve months ago. The net asset value per share has risen 6.9% in the year ended 31 October 2004 while the FTSE SmallCap (excluding investment companies) Index is ahead 4.1% in capital terms. The performance of our UK investments was again very satisfactory this year. In capital terms the UK portfolio returned 12.1% over the one year and 74.8% over the two years ended 31 October 2004. By comparison our benchmark, the FTSE SmallCap (excluding investment companies) Index, rose by 4.1% and 46.0% over the one and two year periods respectively. The directors remain disappointed with the performance of the overseas portfolios. This disparity in results has led the Board to recommend the change of investment policy referred to below (and set out in the separate circular being sent to shareholders). Cash levels rose in the final months of the year following the decision to reduce exposure to the US, driven principally by our belief that the US dollar would continue to weaken. The revenue account has again improved over the year but, given the level of the negative balance on the revenue reserve brought forward, we shall not be paying a dividend. Just under half of one per cent of the issued share capital was bought back during the year. The proposed discount control mechanism (explained in the separate circular being sent to shareholders) should ensure a much lower level of discount to net asset value than that which has prevailed in the past few years. Proposals The Board is proposing that the Company's investment policy be changed from capital growth through an international portfolio of smaller companies to capital growth from investment in a portfolio of UK micro cap investments. In addition, the Board is proposing a Tender Offer and Matching Facility. Details of these and certain related matters are set out in detail in the separate circular being sent to shareholders. - 2 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2004 The Chairman's Statement (continued) Board changes As reported at the interim stage, I succeeded Frans ten Bos as Chairman half way through our year. It is appropriate to record again our thanks to Frans for his many years of diligent and enthusiastic service to the Company. Stephen Burley stands down as a director at the Annual General Meeting in February and Edward Whitley intends to do so later next year. We are indebted to them both for their long, loyal and much valued service to the Company. We welcomed Peter May to the Board in June and envisage the appointment of at least one further new director in 2005. AGM Notice of the Annual General Meeting, together with details of the Board's proposals for the future management of the Company, is set out in the separate circular being sent to shareholders. The AGM will afford all shareholders the chance to vote for the continuation of the Company. Outlook The background for investing in smaller companies remains positive. We expect that the best opportunities will be in some of the smaller companies in the UK that are not so closely followed by investors and we believe that our Manager has the expertise to select those that will be the ultimate winners. New issue activity is bringing innovative businesses into the portfolio; rising corporate activity highlights the reasonable valuations of smaller companies; and steady profits growth offers the expectation of both capital and income returns. The prospects are encouraging. G B Burnett Chairman 22 December 2004 For further information please contact: Richard Smith Director Henderson Strata Investments plc Telephone: 020 7818 4368 or Stephen Westwood Head of Investment Trusts Henderson Global Investors Telephone: 020 7818 5517 or Vicki Staveacre Press Office Henderson Global Investors 020 7818 4222 - MORE - - 3 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2004 Statement of Total Return (incorporating the revenue account) for the year ended 31 October 2004 Year ended 31 October 2004 Year ended 31 October 2003 (unaudited) (audited) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from investments - 4,577 4,577 - 22,483 22,483 Income from fixed asset investments 1,495 - 1,495 1,151 - 1,151 Other interest receivable and similar income 39 - 39 154 - 154 ---------- ---------- ---------- ---------- ---------- ---------- Gross revenue and capital gains 1,534 4,577 6,111 1,305 22,483 23,788 Management fee (639) - (639) (624) - (624) Other administrative expenses (208) - (208) (170) - (170) --------- ---------- ---------- --------- ---------- ---------- Net return on ordinary activities before interest payable and taxation 687 4,577 5,264 511 22,483 22,994 Interest payable (47) - (47) (11) - (11) ---------- ---------- ---------- ---------- ---------- ---------- Net return on ordinary activities before taxation 640 4,577 5,217 500 22,483 22,983 Taxation on net return on ordinary activities (57) - (57) (50) - (50) ----------- ---------- ---------- ----------- ---------- ---------- Net return on ordinary activities after taxation 583 4,577 5,160 450 22,483 22,933 Dividends - nil - - - - - - ----------- ------------ ----------- ----------- ------------ ----------- Transfer to reserves 583 4,577 5,160 450 22,483 22,933 ======= ======= ======= ======= ======= ======= Return per ordinary share (note 1) 3.41p 26.75p 30.16p 2.61p 130.15p 132.76p ======= ======= ======= ======= ======= ======= The revenue columns of this statement represent the revenue accounts of the Company. - MORE - - 4 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2004 Balance Sheet at 31 October 2004 2004 2003 £'000 £'000 Fixed asset investments Listed investments at market value: United Kingdom 40,272 35,404 Overseas 24,026 33,631 ----------- ----------- 64,298 69,035 AIM investments at market value 17,243 6,610 Unquoted investments at directors' valuation 58 59 ----------- ----------- 81,599 75,704 ----------- ----------- Current assets Debtors 1,236 1,539 Cash at bank 380 665 ----------- ----------- 1,616 2,204 Creditors: amounts falling due within one year (2,336) (1,906) ----------- ----------- Net current (liabilities)/assets (720) 298 ----------- ----------- Total net assets 80,879 76,002 ======= ======= Capital and reserves Called-up share capital 4,276 4,297 Capital reserves Share premium account 16,479 16,479 Capital redemption reserve 130 109 Capital reserve - realised 57,774 55,420 Capital reserve - unrealised 4,931 2,991 Revenue reserve (2,711) (3,294) ----------- ----------- Equity shareholders' funds 80,879 76,002 ======= ======= Net asset value per ordinary share (note 1) 472.93p 442.22p ======= ======= - MORE - - 5 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2004 Cash Flow Statement for the year ended 31 October 2004 2004 2004 2003 2003 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 751 228 Servicing of finance Interest paid (47) (12) ----------- ----------- Net cash outflow from servicing of finance (47) (12) Taxation Tax recovered 17 6 ----------- ----------- Net tax recovered 17 6 Financial investment Purchase of investments (46,849) (26,273) Sale of investments 46,124 19,525 ----------- ----------- Net cash outflow from financial investment (725) (6,748) Financing Purchase of own shares (283) (430) ----------- ----------- Net cash outflow from financing (283) (430) ----------- ----------- Decrease in cash (287) (6,956) ====== ====== Reconciliation of net cash flow to movement in net funds Decrease in cash as above (287) (6,956) Exchange movements 2 (73) ----------- ----------- Movement in net funds (285) (7,029) Net funds at 1 November 665 7,694 ----------- ----------- Net funds at 31 October 380 665 ====== ====== - MORE - - 6 - HENDERSON STRATA INVESTMENTS PLC Unaudited Preliminary Results for the year ended 31 October 2004 Notes : 1. Return per ordinary share The revenue return per ordinary share is based on the net return on ordinary activities after taxation of £583,000 (2003: £450,000) and on the weighted average number of ordinary shares of 25p each in issue during the year of 17,112,430 (2003: 17,274,201). The capital return per ordinary share is based on the net capital gains for the year of £4,577,000 (2003: £22,483,000) and on the weighted average number of ordinary shares of 25p each in issue during the year, as stated above. 2. Issued Share Capital The number of ordinary shares of 25p each in issue at 31 October 2004 was 17,101,515 (2003: 17,186,515). 3. Dividend No dividend has been declared in respect of the year. 4. 2004 Accounts The preliminary figures for the year ended 31 October 2004 are an extract from the Company's latest accounts for that period. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 5. 2003 Accounts The figures and financial information for the year ended 31 October 2003 are an extract from the latest published accounts of the Company 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 a statement under either section 237(2) or section 237(3) of the Companies Act 1985. 6. Annual Report The full annual report and accounts will be posted to shareholders on 22 December 2004 and copies will be available thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. 7. Annual General Meeting The Annual General Meeting will be held on Thursday 10 February 2005 at 2.00 pm at 4 Broadgate, London EC2M 2DA. In accordance with the Company's articles of association, a continuation vote will be put, as an ordinary resolution, to the Annual General Meeting. - ENDS - This information is provided by RNS The company news service from the London Stock Exchange

Companies

Henderson Opportunities Trust (HOT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today