Interim Results
Henderson Smaller Cos Inv Tst PLC
14 January 2002
HENDERSON GLOBAL INVESTORS
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
14 January 2002
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2001
Financial Highlights (unaudited)
30 November 30 November 31 May 2001
2001 2000
(audited)
Total net assets £347 million £629 million £533 million
Net asset value per ordinary 227.3p 369.5p 328.9p
share
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2001
The Chairman's Statement:
I am pleased to report that, after a very difficult period for the Trust, the
outlook in the final quarter of the calendar year brightened. In the six
months to November 2001, our net asset value per share dropped by 30.9%
compared with a drop of 14.6% in the FTSE SmallCap Index (excluding investment
companies). However, the net asset value per share rose by 29.7% in the
quarter to 31 December 2001 compared with a rise of 21.5% in the index. The
share price rose by 32.7% between 21 September and 31 December 2001.
Steps were taken to prepare the Trust for more favourable conditions. Colt
Telecommunications was sold and a few weaker performers were culled. The stock
list was reduced further from 89 to 80. Falling markets enabled us to increase
shareholdings in a number of our existing investments, with good business
models, at much lower prices.
Anticipating a bounce back, we made tactical use of debt to enhance the
benefits. The other structural shift was continuing the policy of share
buy-backs. Over the six months we bought in 9.6 million shares at discounts to
net asset value in excess of 15%. Where this process benefits shareholders, we
will continue with the policy.
Our portfolio weighting in Technology, Media and Telecommunications (TMT)
companies was virtually unchanged, at 63%. Within the category, however,
telecommunications shrank and technology gained importance, with investments
in services and outsourcing as well as technology information and licensing.
Technology may be out of fashion, but it is an essential driver of tomorrow's
growth and investing in high quality technology companies must remain a core
part of our business strategy.
By supporting companies with strong management, a scalable business
proposition, long term customer relationships, proprietory intellectual
property assets and solid funding, we remain convinced we can serve
shareholders well. You have been patient and, whilst we continue to warn of
high volatility, we are also confident that our philosophy of searching out
smaller companies with above average growth potential, and running our
winners, will deliver long term performance.
P H G Cadbury
Chairman
11 January 2002
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2001
Group Statement of Total Return (incorporating the revenue account)*
for the half year ended 30 November 2001
Half year ended Half year ended
30 November 2001 30 November 2000
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Total
capital
losses from
investments - (167,121) (167,121) - (92,345) (92,345)
Income
from fixed
asset
investments 2,101 - 2,101 2,114 - 2,114
Other
interest
receivable
and similar
income 89 - 89 686 - 686
-------- --------- --------- --------- --------- ---------
Gross 2,190 (167,121) (164,931) 2,800 (92,345) (89,545)
revenue
and
capital
losses
Management (1,597) - (1,597) (1,451) - (1,451)
fee
Other (204) - (204) (206) - (206)
administrative
expenses
Irrecoverable (267) - (267) (251) - (251)
VAT
-------- --------- --------- --------- --------- ---------
Net return/
(loss) on
ordinary
activities
before
interest
payable and
taxation 122 (167,121) (166,999) 892 (92,345) (91,453)
Interest
payable (1,141) - (1,141) (1,051) - (1,051)
-------- --------- --------- --------- --------- ---------
Net loss
on ordinary
activities
before
taxation (1,019) (167,121) (168,140) (159) (92,345) (92,504)
Taxation
on net
return on
ordinary
activities - - - - - -
-------- --------- --------- --------- --------- ---------
Net loss
on ordinary
activities (1,019) (167,121) (168,140) (159) (92,345) (92,504)
after
taxation
Interim - - - - - -
dividend:
nil (2000:
nil)
Final - - - - - -
dividend:
0.50p (31
May 2001)
Over 26 - 26 - - -
accrual re
prior year
(note 4)
-------- --------- --------- --------- --------- ---------
Transfer (993) (167,121) (168,114) (159) (92,345) (92,504)
from reserves
======= ======= ======= ======= ======= =======
Loss per (0.66)p (107.93)p (108.59)p (0.09)p (54.20)p (54.29)p
ordinary
share
======= ======= ======= ======= ======= =======
Year ended
31 May 2001 (audited)
Revenue Capital Total
£'000 £'000 £'000
Total capital losses from
investments - (162,352) (162,352)
Income from fixed asset 4,506 - 4,506
investments
Other interest
receivable and similar
income 926 - 926
---------- ---------- ---------
Gross revenue and 5,432 (162,352) (156,920)
capital losses
Management fee (3,022) - (3,022)
Other administrative (344) - (344)
expenses
Irrecoverable VAT (512) - (512)
---------- ---------- ---------
Net return/(loss) on
ordinary
activities before
interest payable
and taxation 1,554 (162,352) (160,798)
Interest payable (2,123) - (2,123)
---------- ---------- ---------
Net loss on ordinary
activities before (569) (162,352) (162,921)
taxation
Taxation on net return
on ordinary
activities - - -
---------- ---------- ---------
Net loss on ordinary
activities after taxation (569) (162,352) (162,921)
Interim dividend: nil - - -
(2000: nil)
Final dividend: 0.50p (810) - (810)
(31 May 2001)
Over accrual re prior - - -
year (note 4)
----------- ----------- -----------
Transfer from reserves (1,379) (162,352) (163,731)
======= ======= =======
Loss per ordinary share (0.34)p (95.91)p (96.25)p
======= ======= =======
* The revenue columns of this statement represent the consolidated revenue
accounts of the Group (see note 3).
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2001
Group Balance Sheet
at 30 November 2001
30 November 30 November 31 May 2001
2001 2000 (audited)
£'000 £'000 £'000
Fixed asset investments
Listed investments at market
value:
United Kingdom 346,890 599,133 518,103
Overseas - 35 -
---------- ---------- ----------
346,890 599,168 518,103
AIM investments at market value 25,615 39,979 30,036
Unquoted investments at
directors'
valuation 2,250 4,500 2,250
---------- ---------- ----------
Total fixed asset investments 374,755 643,647 550,389
---------- ---------- ----------
Current assets
Debtors 1,155 3,140 1,370
Cash at bank and short term 575 10,005 16,876
deposits
---------- ---------- ----------
1,730 13,145 18,246
Creditors : amounts falling due
within one year (9,774) (7,326) (15,434)
---------- ---------- ----------
Net current (liabilities)/assets (8,044) 5,819 2,812
---------- ---------- ----------
Total assets less current 366,711 649,466 553,201
liabilities
Creditors: amounts falling due
after more than one year (20,000) (20,000) (20,000)
---------- ---------- ----------
Total net assets 346,711 629,466 533,201
---------- ---------- ----------
Capital and reserves
Called-up share capital 38,142 42,602 40,531
Other capital reserves 303,920 580,002 487,028
Revenue reserve 4,649 6,862 5,642
---------- ---------- ----------
Shareholders' funds (including
non-equity interests of £9,000;
2000: £9,000) 346,711 629,466 533,201
====== ====== ======
Net asset value per ordinary 227.3p 369.5p 328.9p
share
====== ====== ======
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2001
Group Cash Flow Statement
for the half year ended 30 November 2001
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2001 2000 2001
(audited)
£'000 £'000 £'000
Net cash inflow from operating 846 1,225 1,284
activities
Net cash outflow from servicing of (1,139) (1,891) (3,173)
finance
Net tax recovered - 39 43
Net cash (outflow)/inflow from
financial investment (2,048) (21,168) 11,957
Equity dividends paid (784) (852) (852)
Management of liquid resources 10,000 15,000 10,000
Purchase of ordinary shares (18,376) - (25,038)
---------- ---------- ----------
Net cash outflow before financing (11,501) (7,647) (5,779)
Net cash inflow from financing 5,200 - -
---------- ---------- ----------
Decrease in cash (6,301) (7,647) (5,779)
====== ====== ======
Reconciliation of net revenue return to
net cash
inflow from operating activities
Net revenue before interest payable and 122 892 1,554
taxation
Decrease/(increase) in accrued income 683 349 (186)
Decrease/(increase) in debtors 16 (28) (53)
Increase/(decrease) in creditors 25 12 (25)
UK income tax deducted at source - - (6)
---------- ---------- ----------
Net cash inflow from operating 846 1,225 1,284
activities
====== ====== ======
Reconciliation of net cash flow to
movement in net
debt
Decrease in cash as above (6,301) (7,647) (5,779)
Debt falling due within one year (5,200) - -
Cash inflow from management of liquid (10,000) (15,000) (10,000)
resources
---------- ---------- ----------
Change in net debt resulting from cash (21,501) (22,647) (15,779)
flows
Exchange movements - (2) 1
---------- ---------- ----------
Movement in net debt during the period (21,501) (22,649) (15,778)
Net (debt)/funds at the beginning of the (3,124) 12,654 12,654
period
---------- ---------- ----------
Net debt at the end of the period (24,625) (9,995) (3,124)
====== ====== ======
Represented by:
Cash at bank and short term deposits 575 10,005 16,876
Debt falling due within one year (5,200) - -
Debt falling due after more than one (20,000) (20,000) (20,000)
year
---------- ---------- ----------
(24,625) (9,995) (3,124)
====== ====== ======
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2001
Notes
1. Loss per ordinary share
Capital loss per ordinary share is based on the net capital losses for
the half year of £167,121,000 (half year ended 30 November 2000: £
92,345,000; year ended 31 May 2001: £162,352,000) and on the weighted
average number of ordinary shares in issue during the half year of
154,839,400 (half year ended 30 November 2000: 170,371,070; year ended
31 May 2001: 169,276,109).
Revenue loss per ordinary share is based on the losses attributable to
the ordinary shares of £1,019,000 (half year ended 30 November 2000: £
159,000; year ended 31 May 2001: £569,000) and on the weighted average
number of ordinary shares in issue during the half year of 154,839,400
(half year ended 30 November 2000: 170,371,070; year ended 31 May
2001: 169,276,109).
2. 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 £346,702,000 (30 November 2000:
£629,457,000; 31 May 2001 £533,192,000) and on the 152,530,880
ordinary shares in issue (30 November 2000: 170,371,070; 31 May 2001:
162,089,094).
3. Basis of consolidation
The Group accounts consolidate the accounts of the Company and of its
wholly owned subsidiary undertaking, Henderson Smaller Companies
Finance Limited.
4. Interim Dividend
No interim dividend has been declared (2000: nil).
The dividend payable in respect of the year ended 31 May 2001, at 0.5p
per ordinary share, amounted to £810,000. The buy-backs of the
Company's ordinary shares, after 31 May 2001 but before the record
date of the final dividend for the year ended on that date, resulted
in a write-back of £26,000 for dividends accrued in the year ended 31
May 2001 but not in the event payable.
5. Accounts for the year ended 31 May 2001
The figures and financial information for the year ended 31 May 2001
are an extract from the latest published accounts of the Group and do
not constitute the statutory accounts for that year. These 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 237(3) of the Companies Act
1985.
6. Interim Report
The full interim report will be posted to shareholders in February
2002 and copies will be available thereafter from the Secretary at the
Company's Registered Office, 4 Broadgate, London EC2M 2DA.
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2001
Largest Investments
The 60 largest investments at 30 November 2001 were as follows:
Valuation at Valuation at
30 November 30 November
2001 2001
£'000 £'000
Xansa 23,111 *Systems Union 4,125
BTG 20,661 Metal Bulletin 4,076
Taylor & Francis 20,300 Parity 3,941
Interserve 19,835 Mentmore Abbey 3,555
Fitness First 19,282 Torotrak 3,546
Galen 18,750 Porvair 3,534
Pizza Express 16,380 *Tribal 3,429
Taylor Nelson Sofres 12,150 Psion 3,384
The Innovation Group 11,974 Highbury House 3,382
Communications
Marlborough Stirling 9,239 Scipher 3,319
Informa 8,845 RM 3,000
Itnet 8,646 *Science Systems 2,982
Games Workshop 7,701 Filtronic 2,920
Capital Radio 7,209 TTP Communications 2,769
Guardian IT 6,600 Penna Consulting 2,650
Clinton Cards 6,465 Scottish Radio 2,595
London Bridge 6,028 +UbiNetics 2,250
Software
GWR 5,794 Dicom 2,208
royalblue 5,619 Kunick 2,201
*Tenon 5,498 Wilmington 1,959
Helphire 5,467 Parkman 1,936
Parthus Technologies 5,400 *NRX Global 1,820
N Brown 5,300 Imagination Technologies 1,756
Ashtead 5,265 Generics 1,744
*Transense 5,080 Druck 1,727
Technologies
Anite 4,725 Coffee Republic 1,598
ICM Computer 4,503 Axon 1,523
Diagonal 4,426 Financial Objects 1,380
Intec Telecom 4,256 NXT 1,190
Systems
Trifast 4,219 Mayborn 1,176
* Listed on the Alternative Investment Market
+ Unquoted
These investments total £366,403,000 or 97.8% of the portfolio.
- ENDS -
For further information please contact : or:
John Alexander or Andrew Stack Vicki Staveacre
The Henderson Smaller Companies Investment Trust plc Henderson Press Office
Telephone: 020 7818 4222
Telephone : 020 7818 4340/020 7818 4351
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