Interim Results

Henderson Opportunities Trust PLC 20 June 2007 Page 1 of 8 HENDERSON GLOBAL INVESTORS HENDERSON OPPORTUNITIES TRUST PLC 20 JUNE 2007 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 Henderson Opportunities Trust plc invests in a portfolio of predominantly UK companies that the portfolio manager believes to be undervalued by the market. The policy is to invest in a concentrated portfolio of shares on an unconstrained basis across the whole range of market capitalisations. The portfolio is characterised by its focus on growth, recovery and 'special opportunities' company shares which the portfolio manager believes should achieve a higher than average rate of growth over the medium to long term. The appointed portfolio manager is James Henderson, assisted at Henderson Global Investors by Colin Hughes. Prior to 19 January 2007 the name of the Company was Henderson Strata Investments plc and its policy was to achieve above average capital growth from investment in a portfolio of UK micro cap companies. The name and investment policy were changed at an Extraordinary General Meeting of the Company held on 19 January 2007. Highlights • Net asset value per ordinary share up 17.2% over the period (6.7% since 19 January 2007) • Share price return of 21.0%, including the new subscription shares • Broadening of the investment approach, following the change of objective and strategy 'During the half year ended 30 April 2007 the net asset value per ordinary share rose by 17.2%, from 709.3p to 831.6p, while the FTSE All-Share Index, since 19 January 2007 the Company's benchmark, returned 8.6%. The Board is very encouraged, not only by the changes that have been introduced but also by the continuing success of the investment in small companies. After the strong run up in share prices, value, particularly in medium sized companies, is more difficult to find. However, we are confident that value will re-emerge and that our strengthened management team will make full use of the investment opportunities as they arise.' George Burnett, Chairman For further information please contact: James de Sausmarez or George Burnett Head of Investment Trusts Chairman Henderson Global Investors Henderson Opportunities Trust plc Telephone: 020 7818 3349 Telephone: 020 7818 4469 Page 2 of 8 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 Review During the half year ended 30 April 2007 the net asset value per ordinary share rose by 17.2%, from 709.3p to 831.6p, while the FTSE All-Share Index, since 19 January 2007 the Company's benchmark, returned 8.6%. The market price of the ordinary shares rose from 646.5p to 758.0p. Including the bonus issue of subscription shares, which at 30 April 2007 had a market price of 122.5p, the share price return was 21.0%. At the EGM on 19 January 2007 the shareholders approved a change of strategy which saw the appointment of James Henderson to broaden the investment objective by seeking investment opportunities across the entire range of the UK stockmarket. Given the success of the micro cap portfolio built up by Colin Hughes over the last two years, many of these stocks have contributed to the strong performance of the first half of our year. James and Colin will continue to work closely with James in respect of UK micro cap investments. After the announcement of the proposed changes, the Company's brokers, JPMorgan Cazenove, placed about a quarter of the issued ordinary shares with new and existing investors. This broadened the investor base of the Company and the Board welcomes the new shareholders. Following the EGM vote, a free subscription share for every five ordinary shares held was issued to shareholders. This has been well received and the overall package is trading at a tighter discount to asset value. The Income Statement for the half year has borne the costs of the changes made in January. However, the income from the portfolio is growing and the revenue return for the full year will be positive. Consequent to the EGM, the negative balance on the revenue reserve was cleared. Accordingly, the board expects to pay a modest annual dividend in due course. Portfolio Activity During the period new holdings in smaller companies were added to the portfolio, including the engineers Senior and Hill & Smith which are growing strongly. Investments were also made in a number of new entrants to the stockmarket, including AssetCo, an outsourced service provider to fire brigades, and Vertu, a new vehicle for former Reg Vardy managers to act as a consolidator in the volume retail car market. The portfolio also participated in the rescue rights issue for Autologic. In major companies, a holding in BP was started as the manager believes that investor concerns about the company have been exaggerated. Since the period end, Cadburys and Shire Pharmaceuticals have been added to the list. Takeover activity has continued at a significant level. This has resulted in the realisation of a number of investments for cash, as has the selling of stocks where expectations have not been met. The effect has been to reduce the gearing, giving the manager greater flexibility in the coming period. Outlook The Board is very encouraged, not only by the changes that have been introduced but also by the continuing success of the investment in small companies. After the strong run up in share prices, value, particularly in medium sized companies, is more difficult to find. However, the directors are confident that value will re-emerge and that the strengthened management team will make full use of the investment opportunities as they arise. Page 3 of 8 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 Income Statement for the half year ended 30 April 2007 (Unaudited) (Unaudited ) (Audited) Half year ended Half year ended Year ended 30 April 2007 30 April 2006 31 October 2006 Revenue Capital Revenue Capital Revenue Capital return return Total return return Total return return Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains from investments held at fair value through profit or loss - 10,638 10,638 - 14,435 14,435 - 15,916 15,916 Income from investments held at fair value through profit or loss 418 - 418 400 - 400 961 - 961 Other interest receivable and similar income 7 - 7 15 - 15 17 - 17 --------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------- Gross revenue and 425 10,638 11,063 415 14,435 14,850 978 15,916 16,894 capital gains ---------- ---------- ---------- --------- --------- ---------- ---------- ---------- --------- Management fees (57) (230) (287) (75) (300) (375) (141) (566) (707) Provision for performance fee (note 5) - (175) (175) - - - - - - Costs of reorganisation (note 5) (320) - (320) - - - - - - Other administrative expenses (99) - (99) (110) - (110) (217) - (217) --------- ---------- ---------- --------- --------- --------- ---------- ---------- --------- (476) (405) (881) (185) (300) (485) (358) (566) (924) --------- ---------- ---------- --------- --------- --------- ---------- ---------- --------- Net (loss)/return on ordinary activities before finance costs and taxation (51) 10,233 10,182 230 14,135 14,365 620 15,350 15,970 Finance costs (29) (114) (143) (26) (103) (129) (60) (240) (300) --------- -------- -------- --------- --------- -------- --------- --------- --------- Net (loss)/return on ordinary activities before taxation (80) 10,119 10,039 204 14,032 14,236 560 15,110 15,670 Taxation on net (loss)/ return on ordinary activities - - - - - - - - - --------- -------- -------- --------- --------- -------- --------- --------- --------- Net (loss)/return on ordinary activities after taxation (80) 10,119 10,039 204 14,032 14,236 560 15,110 15,670 ===== ====== ====== ====== ====== ======= ===== ====== ====== (Loss)/return per ordinary share (note 3) (0.97)p 123.27p 122.30p 1.85p 127.34p 129.19p 5.29p 142.74p 148.03p The total column of this statement represents the Income Statement of the Company. All revenue and capital items in the above statement derive from continuing operations. Page 4 of 8 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 Reconciliation of Movements in Shareholders' Funds (Unaudited) Half year ended 30 April 2007 Called up Share Capital Other share premium redemption Capital capital account reserve reserves Revenue reserve Total £'000 £'000 £'000 £'000 £'000 £'000 At 31 October 2006 2,052 16,479 2,354 39,296 (1,958) 58,223 Bonus issue of subscription shares 16 (16) - - - - Net return/(loss) from ordinary activities after taxation - - - 10,119 (80) 10,039 Write off of revenue deficit brought forward - (1,958) - - 1,958 - ---------- ---------- ---------- ---------- ---------- ---------- At 30 April 2007 2,068 14,505 2,354 49,415 (80) 68,262 ====== ====== ====== ===== ====== ====== (Unaudited) Half year ended 30 April 2006 Called up Share Capital Other premium redemption capital share account reserve reserves Revenue reserve capital Total £'000 £'000 £'000 £'000 £'000 £'000 At 31 October 2005 3,041 16,479 1,365 42,473 (2,518) 60,840 Adjustment to bid valuation - - - (209) - (209) Net return from ordinary activities after - - - 14,032 204 14,236 taxation Purchase of own shares for cancellation (107) - 107 (2,289) - (2,289) ---------- ---------- ---------- ---------- ---------- ---------- At 30 April 2006 2,934 16,479 1,472 54,007 (2,314) 72,578 ====== ====== ====== ====== ====== ====== (Audited) Year ended 31 October 2006 Called up Share Capital Other share premium redemption capital capital account reserve reserves Revenue reserve Total £'000 £'000 £'000 £'000 £'000 £'000 At 31 October 2005 3,041 16,479 1,365 42,473 (2,518) 60,840 Adjustment to bid valuation - - - (209) - (209) Net return from ordinary activities after - - - 15,110 560 15,670 taxation Purchase of own shares for cancellation (763) - 763 (18,078) - (18,078) Cancellation of treasury shares (226) - 226 - - - ---------- ---------- ---------- ---------- ---------- ---------- At 31 October 2006 2,052 16,479 2,354 39,296 (1,958) 58,223 ====== ====== ====== ====== ====== ====== Purchase transaction costs for the half year ended 30 April 2007 were £34,000 (half year ended 30 April 2006: £30,000; year ended 31 October 2006: £39,000). These comprise mainly stamp duty and commission. Sale transaction costs for the half year ended 30 April 2007 were £19,000 (half year ended 30 April 2006: £16,000; year ended 31 October 2006: £43,000). Page 5 of 8 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 Balance Sheet as at 30 April 2007 (Unaudited) (Unaudited) (Audited) 30 April 30 April 31 October 2007 2006 2006 £'000 £'000 £'000 Investments held at fair value through profit or loss Listed at market value in the United Kingdom 72,718 78,545 67,015 Unquoted at directors' valuation - 48 36 ----------- ----------- ----------- 72,718 78,593 67,051 ----------- ----------- ----------- Current assets Debtors 266 219 1,110 Bank balances and short term deposits (191) 94 6 ----------- ----------- ----------- 75 313 1,116 Creditors: amounts falling due within one year (4,531) (6,328) (9,944) ---------- ---------- ---------- Net current liabilities (4,456) (6,015) (8,828) ---------- ---------- ---------- Total net assets 68,262 72,578 58,223 ====== ====== ====== Capital and reserves Called up share capital 2,068 2,934 2,052 Share premium account 14,505 16,479 16,479 Capital redemption reserve 2,354 1,472 2,354 Other capital reserves 49,415 54,007 39,296 Revenue reserve (80) (2,314) (1,958) ---------- ---------- ---------- Equity shareholders' funds 68,262 72,578 58,223 ====== ====== ====== Net asset value per ordinary share (note 4) 831.62p 670.01p 709.32p Page 6 of 8 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 Cash Flow Statement for the half year ended 30 April 2007 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 April 2007 30 April 2006 31 October 2006 £'000 £'000 £'000 Net cash outflow from operating activities (432) (266) (121) Net cash outflow from servicing of finance (147) (120) (294) Net tax recovered - - 7 Net cash inflow from financial investment 5,966 901 12,947 ---------- ---------- ---------- Net cash inflow before financing 5,387 515 12,539 Net cash outflow from financing (5,584) (1,828) (12,494) ---------- ---------- ---------- (Decrease)/increase in cash (197) (1,313) 45 ===== ====== ====== Reconciliation of operating return to net cash outflow from operating activities Net total return before finance costs and taxation 10,182 14,365 15,970 Less: capital return before finance costs and taxation (10,233) (14,135) (15,350) ---------- ---------- ---------- Net revenue (loss)/return before finance costs and taxation (51) 230 620 (Increase)/decrease in accrued income (107) (23) 100 Decrease in other debtors and prepayments - - 8 Increase/(decrease) in other creditors 105 (173) (283) Expenses charged to capital (379) (300) (566) ---------- ---------- ---------- Net cash outflow from operating activities (432) (266) (121) ===== ====== ====== Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash as above (197) (1,313) 45 Net cash outflow/(inflow) from decrease/(increase) in loans 4,100 (461) (4,100) Exchange movements - - (1) ---------- ---------- ---------- Movement in net funds/(debt) 3,903 (1,774) (4,056) Net debt at the start of the period (8,094) (4,038) (4,038) ---------- ---------- ---------- Net debt at the end of the period (4,191) (5,812) (8,094) ===== ====== ====== Represented by: Cash at bank and short term deposits (191) 94 6 Debt falling due within one year (4,000) (5,906) (8,100) ---------- ---------- ---------- Net debt (4,191) (5,812) (8,094) ===== ====== ====== Page 7 of 8 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 Notes to the Accounts 1 Accounting Policies The accounts are prepared on the historical cost basis of accounting, modified to include the revaluation of investments, and in accordance with the Companies Act, Accounting Standards applicable in the United Kingdom and the Revised Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' ('the Revised SORP', dated December 2005). All of the Company's operations are of a continuing nature. The same accounting policies used for the year ended 31 October 2006 have been applied. 2 Issued share capital There were 8,208,293 ordinary shares of 25p each in issue at 30 April 2007 (30 April 2006: 11,736,660; 31 October 2006: 8,208,293). None of these shares were held in treasury (30 April 2006: 904,246 shares held in treasury; 31 October 2006: no shares held in treasury). During the half year ended 30 April 2007 the Company made no market purchases for cancellation of its own issued ordinary shares (half year ended 30 April 2006: 428,000; year ended 31 October 2006: 3,052,121). There were 1,641,547 subscription shares of 1p each in issue at 30 April 2007 (30 April 2006 and 31 October 2006: nil). The subscription shares were issued, as a bonus issue to the ordinary shareholders, on 19 January 2007. 3 Return/(loss) per ordinary share (Unaudited) (Unaudited) Half year Half year ended ended (Audited) 30 April 2007 30 April 2006 Year ended 31 October 2006 £'000 £'000 £'000 The return/(loss) per ordinary share is based on the following figures: Revenue (loss)/return (80) 204 560 Capital return 10,119 14,032 15,110 ---------- ---------- ---------- Total 10,039 14,236 15,670 ====== ====== ====== Weighted average number of ordinary shares in issue for the period 8,208,293 11,019,099 10,585,584 Revenue (loss)/return per ordinary share (0.97)p 1.85p 5.29p Capital return per ordinary share 123.27p 127.34p 142.74p ---------- ---------- ---------- 122.30p 129.19p 148.03p ====== ====== ====== Page 8 of 8 HENDERSON OPPORTUNITIES TRUST PLC Unaudited results for the half year ended 30 April 2007 4 Net asset value per ordinary share The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £68,262,000 (30 April 2006: £72,578,000; 31 October 2006: £58,223,000) and on the 8,208,293 ordinary shares of 25p each in issue at 30 April 2007 (30 April 2006: 10,832,414*; 31 October 2006: 8,208,293). * The number of shares has been adjusted for the shares held in treasury at that date which, for this purpose, are not treated as being in issue. 5 Expenses Provision for performance fee The Income Statement includes provision for a performance fee in respect of the period from 19 January 2007 to 31 October 2007 inclusive. As the performance fee payable to Henderson is based on investment performance over the full period and crystallises only at the period end, the calculation as at 30 April 2007 (of £175,000, including irrecoverable VAT) is merely an accrual based on outperformance up to that date. The performance fee is calculated as 15% of outperformance of the FTSE All-Share Index by the aggregate net asset value per share (fully diluted), calculated on a total return basis. The performance fee is allocated as a cost to the capital return. Costs of reorganisation On 19 January 2007 the Company changed its investment objective and investment strategy, changed its name and made a bonus issue of subscription shares to the ordinary shareholders, as set out in the Prospectus dated 21 December 2006. The costs of these changes totalled £320,000 (including irrecoverable VAT). The costs of the reorganisation are allocated to the revenue return. 6 Accounts for the year ended 31 October 2006 The figures and financial information for the year ended 31 October 2006 are extracted 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. This information is provided by RNS The company news service from the London Stock Exchange

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