Interim Results

Henderson Smaller Cos Inv Tst PLC 26 January 2004 HENDERSON GLOBAL INVESTORS THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC 26 January 2004 THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 Highlights Strong performance: • Net asset value per share up 28% • Benchmark index up 23% The Chairman's Statement: When I reported to you last July, in the annual report for the year ended 31 May 2003, I expressed confidence that we would perform well in the year ahead. In the interim period to 30 November 2003 our net asset value per share rose by 28% to 156p, compared with an increase in the benchmark index, on a total return basis, of 23%. This performance suggests that our confidence in the Trust's new management team has been well placed. It has been most encouraging to see the Company's name feature strongly in recent performance tables. Our portfolio, with its bias towards economically sensitive sectors such as Media, Electronics, Support Services and Software and Computer Services, has benefited from the global economic recovery. To fund additional investment in these sectors our managers have exercised strong selling disciplines. Increased bid activity and some revival in the new issues market have provided opportunities to take profits and to reinvest in new businesses. Nevertheless, the structure of the portfolio remains largely as outlined in some detail in the annual report. - MORE - - 2 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 Chairman's Statement cont/d... Our debenture stock is expensive to service but the gearing which it provides has helped us to make the most of the rising market. In addition, we have made some use of our short-term borrowing facility during the period and, subject to regular review by the board, expect to continue to do so. The revenue account has strengthened, reflecting in part the emphasis that our fund managers place on investment income. However, capital growth remains our priority. We shall maintain the discipline of allocating all our costs, including interest payable, against revenue. After three years of negative returns, share prices rose in 2003 with smaller companies performing much more strongly than the market as a whole. That outperformance is unlikely to continue to so marked an extent. We remain confident, however, that the active management of our portfolio will provide additional value for shareholders as we approach the continuation vote scheduled for September 2004. J Dudley Fishburn Chairman 23 January 2004 - MORE - 3 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 Group Statement of Total Return (incorporating the revenue account)+ for the half year ended 30 November 2003 Half year ended Half year ended Year ended 30 November 2003 30 November 2002 31 May 2003 (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains/(losses) from Investments - 39,552 39,552 - (100,987) (100,987) - (85,899) (85,899) Income 1,956 - 1,956 1,869 - 1,869 4,042 - 4,042 from fixed asset investments Other interest receivable and similar Income 87 - 87 20 - 20 98 - 98 ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Gross 2,043 39,552 41,595 1,889 (100,987) (99,098) 4,140 (85,899) (81,759) revenue and capital gains/(losses) Management (343) - (343) (796) - (796) (1,078) - (1,078) fee Other (173) - (173) (221) - (221) (408) - (408) administrative expenses Irrecoverable (77) - (77) (145) - (145) (202) - (202) VAT ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Net return/(loss) on ordinary activities before interest payable and 1,450 39,552 41,002 727 (100,987) (100,260) 2,452 (85,899) (83,447) taxation Interest (1,069) - (1,069) (1,145) - (1,145) (2,208) - (2,208) payable ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Net return/(loss) on ordinary activities 381 39,552 39,933 (418) (100,987) (101,405) 244 (85,899) (85,655) before taxation Taxation on net return on ordinary Activities - - - 1 - 1 1 - 1 ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Net return/(loss) on ordinary activities 381 39,552 39,933 (417) (100,987) (101,404) 245 (85,899) (85,654) after taxation Final - - - 24 - 24 (561) - (561) dividend: 0.50p (note 4) ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- Transfer 381 39,552 39,933 (393) (100,987) (101,380) (316) (85,899) (86,215) to/(from) reserves ======= ======= ======= ======= ======= ======= ======= ======= ======= Return/(loss) 0.33p 33.82p 34.15p (0.33)p (80.18)p (80.51)p 0.20p (69.35)p (69.15)p per ordinary share (note 1) ======= ======= ======= ======= ======= ======= ======= ======= ======= + The revenue columns of this statement represent the consolidated revenue accounts of the Group (see note 3). - MORE - - 4 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 Group Balance Sheet at 30 November 2003 30 November 2003 30 November 2002 31 May 2003 (audited) £'000 £'000 £'000 Fixed asset investments UK listed investments at market value 193,753 139,017 153,434 AIM investments at market value 12,187 8,657 7,368 Unquoted investments at 572 896 896 directors' valuation ---------- ---------- ---------- 206,512 148,570 161,698 ---------- ---------- ---------- Current assets Debtors 603 6,103 1,571 Cash at bank and short term deposits 269 2,465 2,719 ---------- ---------- ---------- 872 8,568 4,290 Creditors : amounts falling due within one year (4,961) (5,397) (3,498) ---------- ---------- ---------- Net current (liabilities)/assets (4,089) 3,171 792 ---------- ---------- ---------- Total assets less current liabilities 202,423 151,741 162,490 Creditors: amounts falling due after more than one year (20,000) (20,000) (20,000) ---------- ---------- ---------- Total net assets 182,423 131,741 142,490 ---------- ---------- ---------- Capital and reserves Called-up share capital 29,248 30,635 29,248 Other capital reserves 149,303 97,692 109,751 Revenue reserve 3,872 3,414 3,491 ---------- ---------- ---------- Shareholders' funds (including non- equity interests of £9,000; 2002: £9,000) 182,423 131,741 142,490 ====== ====== ====== Net asset value per ordinary share 156.0p 107.5p 121.8p ====== ====== ====== - MORE - - 5 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 Group Cash Flow Statement for the half year ended 30 November 2003 Half year ended Year ended Half year ended 30 November 2002 31 May 2003 30 November 2003 £'000 (audited) £'000 £'000 Net cash inflow from operating activities 1,918 1,691 2,797 Net cash outflow from servicing of finance (1,051) (101) (1,161) Net tax recovered - 1 5 Net cash (outflow)/inflow from financial investment (5,332) 22,631 27,253 Equity dividends paid (585) (656) (656) Management of liquid resources - - - ---------- ---------- ---------- Net cash (outflow)/inflow before financing (5,050) 23,566 28,238 Net cash inflow/(outflow) from financing 2,600 (21,143) (25,560) ---------- ---------- ---------- (Decrease)/increase in cash (2,450) 2,423 2,678 ====== ====== ====== Reconciliation of net revenue return to net cash inflow from operating activities Net revenue before interest payable and taxation 1,450 727 2,452 Decrease in accrued income 548 793 194 Decrease in debtors 10 166 135 (Decrease)/increase in creditors (90) 5 16 ---------- ---------- ---------- Net cash inflow from operating activities 1,918 1,691 2,797 ====== ====== ====== Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash as above (2,450) 2,423 2,678 Cash inflow from management of liquid resources - - - Cash (inflow)/outflow from debt financing (2,600) 8,000 8,000 ---------- ---------- ---------- Change in net debt resulting from cash flows (5,050) 10,423 10,678 Exchange movements - 2 1 ---------- ---------- ---------- Movement in net debt during the period (5,050) 10,425 10,679 Net debt at the beginning of the period (17,281) (27,960) (27,960) ---------- ---------- ---------- Net debt at the end of the period (22,331) (17,535) (17,281) ====== ====== ====== Represented by: Cash at bank and short term deposits 269 2,465 2,719 Debt falling due within one year (2,600) - - Debt falling due after more than one year (20,000) (20,000) (20,000) ---------- ---------- ---------- (22,331) (17,535) (17,281) ====== ====== ====== • MORE - - 6 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 Notes 1. Return/(loss) per ordinary share The revenue return per ordinary share is based on the earnings attributable to the ordinary shares of £381,000 (half year ended 30 November 2002: losses of £417,000; year ended 31 May 2003: earnings of £245,000) and on the weighted average number of ordinary shares in issue during the half year of 116,956,840 (half year ended 30 November 2002: 125,954,417; year ended 31 May 2003: 123,856,800). The capital return per ordinary share is based on the net capital gains for the half year of £39,552,000 (half year ended 30 November 2002: net capital losses of £100,987,000; year ended 31 May 2003: net capital losses of £85,899,000) and on the weighted average number of ordinary shares in issue during the half year of 116,956,840 (half year ended 30 November 2002: 125,954,417; year ended 31 May 2003: 123,856,800). 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 £182,414,000 (30 November 2002: £131,732,000; 31 May 2003: £142,481,000) and on the 116,956,840 ordinary shares in issue (30 November 2002: 122,501,840; 31 May 2003: 116,956,840). 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 (2002: nil). The final dividend accrued in respect of the year ended 31 May 2003 at 0.5p per ordinary share amounted to £585,000. The buy-backs of the Company's ordinary shares, after 31 May 2002 but before the record date of the final dividend for the year ended on that date, resulted in a write-back of £24,000 for dividends accrued in respect of the year ended 31 May 2002 but not in the event payable. The £561,000 shown is the sum of these two figures. 5. Accounts for the year ended 31 May 2003 The figures and financial information for the year ended 31 May 2003 are an extract 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 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 2004 and copies will be available thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA. - MORE - - 7 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 Largest Investments The 60 largest investments at 30 November 2003 were as follows: Valuation at Valuation at 30 November 2003 30 November 2003 £'000 £'000 Informa 7,627 Scottish Radio 2,243 Games Workshop 7,258 Kidde 2,241 W S Atkins 7,024 Domnick Hunter 2,176 Clinton Cards 6,671 Capital & Regional 2,056 Balfour Beatty 6,401 Taylor Nelson Sofres 1,976 Interserve 5,074 Rotork 1,961 Bellway 4,879 Punch Taverns 1,954 Westbury 4,387 Marshalls 1,930 ITNET 4,217 Pillar Property 1,913 Domino Printing Sciences 4,202 Greene King 1,840 WSP Group 3,857 SIG 1,800 Tribal 3,700 Greggs 1,767 Enodis 3,677 *Systems Union 1,663 Meggitt 3,627 First Technology 1,657 Intermediate Capital 3,559 Laird 1,632 Taylor & Francis 3,536 Paragon 1,589 Mouchel 3,164 Spectris 1,574 Bovis Homes 3,157 *CODASciSys 1,534 Go-Ahead 3,020 *Ask Central 1,517 NHP 2,906 Wembley 1,515 Grainger Trust 2,838 Shaftesbury 1,512 *Mayborn 2,779 Ulster Television 1,506 RPS Group 2,730 Euromoney Institutional Investor 1,496 Headlam 2,587 Ultra Electronic 1,449 Chrysalis 2,570 Isotron 1,430 ICM Computer 2,425 Porvair 1,411 Topps Tiles 2,387 Brit Insurance 1,406 Intec Telecom Systems 2,346 Carillion 1,405 royalblue 2,280 SVB Holdings 1,399 GWR Group 2,274 *Enterprise 1,316 * listed on the Alternative Investment Market These investments total £168,027,000 or 81.36% of the portfolio. - ENDS - - 8 - THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 November 2003 For further information please contact: Neil Hermon The Henderson Smaller Companies Investment Trust plc Telephone: 020 7818 4351 or Theresa Wat The Henderson Smaller Companies Investment Trust plc Telephone: 020 7818 4644 or Stephen Westwood Head of Investment Trusts Henderson Global Investors Telephone: 020 7818 5517 or Stephen Phillips Associate Director Henderson Global Investors Telephone: 020 7818 6417 or Vicki Staveacre Press Office Henderson Global Investors Telephone: 020 7818 4222 This information is provided by RNS The company news service from the London Stock Exchange

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