Interim Results
Henderson Smaller Cos Inv Tst PLC
30 January 2006
Page 1 of 20
30 January 2006
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Highlights
Performance:
• Net asset value per share up 14.3%*
• Share price up 17.5%*
• Benchmark index up 17.3%*
*Total return for the half year ended 30 November 2005 (source: Datastream)
Extracts from the Chairman's Statement:
Your shares increased their net asset value by 14.3% for the half year. The
equivalent return from our benchmark index was 17.3%. While this result is
disappointing in relative terms, I can report that since the half year much of
the gap has been closed. In the past three years the overall increase in assets
is 129%, compared with a return of 104% from the benchmark. Our fund managers,
Neil Hermon and Theresa Wat who joined us exactly three years ago, are
responsible for this excellent record. We thank them for it, but will be
keeping up the pressure.
International Financial Reporting Standards ('IFRS')
In common with other UK companies that publish consolidated accounts, we adopted
IFRS last year. These interim accounts reflect the new accounting standards for
the first time. The notes to them include reconciliations of the figures for
the comparative periods to those reported previously. There are a number of
changes but only two of the new requirements have an effect on the net asset
value per share. First, our investments are now described as 'held at fair
value through profit or loss'. As such they are valued at bid (or selling)
prices rather than at mid-market prices. The effect on the valuation of the
portfolio at 30 November 2005 is minimal, being a reduction of £169,000 (or
0.07%). Second, dividends are no longer included in the accounts as payable
until they have been approved. Accordingly, the dividend payable in respect of
the year ended 31 May 2005 is added back to the assets at that date and shown as
paid, in the new Statement of Changes in Equity, in the half year ended 30
November 2005.
Page 2 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Extracts from the Chairman's Statement, continued
Outlook
The absolute returns achieved in 2005 were rather better than expected a year
ago. So we remain cautious and alert. However, investor confidence is strong
and corporate activity continues to support the share prices of smaller and
mid-cap companies. Wise stock selection remains the key to success. We expect
our shareholders to benefit from our intimate knowledge of smaller companies in
the UK during the coming year.
Page 3 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Consolidated Income Statement
for the half year ended 30 November 2005
(Unaudited) (Unaudited ) (Audited)
Half year ended Half year ended Year ended
30 November 2005 30 November 2004 31 May 2005
Restated (note 6) Restated (note 5)
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment income 2,678 - 2,678 2,422 - 2,422 5,320 - 5,320
Other income 58 - 58 114 - 114 136 - 136
Gains on investments held
at fair value - 29,460 29,460 - 26,654 26,654 - 39,946 39,946
through profit or loss
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Total income 2,736 29,460 32,196 2,536 26,654 29,190 5,456 39,946 45,402
Expenses
Management fees (514) - (514) (540) - (540) (1,120) - (1,120)
Other expenses (229) - (229) (170) - (170) (319) - (319)
--------- ---------- ---------- ----------- ----------- --------- ---------- ---------- ----------
Profit before finance 1,993 29,460 31,453 1,826 26,654 28,480 4,017 39,946 43,963
costs and tax
Finance costs (1,166) - (1,166) (1,270) - (1,270) (2,454) - (2,454)
--------- -------- -------- -------- --------- --------- --------- --------- ---------
Profit before tax 827 29,460 30,287 556 26,654 27,210 1,563 39,946 41,509
Taxation - - - - - - - - -
--------- -------- -------- -------- --------- --------- --------- --------- ---------
Profit for the period 827 29,460 30,287 556 26,654 27,210 1,563 39,946 41,509
====== ====== ====== ====== ====== ===== ====== ====== ======
Earnings per ordinary 0.81p 29.09p 29.90p 0.51p 24.22p 24.73p 1.44p 36.73p 38.17p
share (note 2)
====== ====== ====== ====== ====== ===== ====== ====== ======
The total column of this statement represents the Group's Income Statement,
prepared in accordance with IFRS. The revenue return and capital return columns
are supplementary to this and are prepared under guidance published by the
Association of Investment Trust Companies.
All items in the above statement derive from the continuing operations.
All income is attributable to the equity holders of The Henderson Smaller
Companies Investment Trust plc, the parent company.
There are no minority interests.
Page 4 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Statement of Changes in Equity
for the half year ended 30 November 2005
(Unaudited)
Half year ended 30 November 2005
Ordinary Capital Other Retained Total
share redemption capital earnings
capital reserve reserves
£'000 £'000 £'000 £'000 £'000
Balance at 31 May 2005 25,414 20,002 167,325 5,330 218,071
Buy-backs of ordinary shares (220) 220 (1,674) - (1,674)
Profit for the period - - 29,460 827 30,287
Ordinary dividend paid - - - (1,166) (1,166)
---------- ---------- ---------- ---------- ----------
Balance at 30 November 2005 25,194 20,222 195,111 4,991 245,518
====== ====== ====== ===== ======
(Unaudited)
Half year ended 30 November 2004
Restated (note 6)
Ordinary Capital Other Retained Total
share redemption capital earnings
capital reserve reserves
£'000 £'000 £'000 £'000 £'000
Balance at 31 May 2004 28,691 16,725 148,210 4,862 198,488
Buy-backs of ordinary shares (1,593) 1,593 (9,273) - (9,273)
Profit for the period - - 26,654 556 27,210
Ordinary dividend paid - - - (1,106) (1,106)
---------- ---------- ---------- ---------- ----------
Balance at 30 November 2004 27,098 18,318 165,591 4,312 215,319
====== ====== ====== ===== ======
(Unaudited)
Year ended 31 May 2005
Restated (note 5)
Ordinary Capital Other Retained Total
share redemption capital earnings
capital reserve reserves
£'000 £'000 £'000 £'000 £'000
Balance at 31 May 2004 28,691 16,725 148,210 4,862 198,488
Buy-backs of ordinary shares (3,277) 3,277 (20,831) - (20,831)
Profit for the period - - 39,946 1,563 41,509
Ordinary dividend paid - - - (1,095) (1,095)
---------- ---------- ---------- ---------- ----------
Balance at 31 May 2005 25,414 20,002 167,325 5,330 218,071
====== ====== ====== ===== ======
Page 5 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Consolidated Balance Sheet
at 30 November 2005
(Unaudited) (Unaudited) (Audited)
30 November 2005 30 November 2004 31 May
Restated 2005
(note 6) Restated
£'000 £'000 (note 5)
£'000
Non-current assets
Investments held at fair value through 269,875 241,067 245,058
profit or loss (note 1 (d)) ----------- ----------- -----------
Current assets
Sales for future settlement 882 1,127 278
Taxation recoverable 8 - 3
Prepayments and accrued income 495 371 865
Cash and cash equivalents 1,890 1,254 -
Other debtors - - 11
---------- ---------- ----------
3,275 2,752 1,157
---------- --------- ----------
Total assets 273,150 243,819 246,215
====== ====== ======
Current liabilities
Purchases for future settlement 2,304 2,199 215
Accruals 419 292 345
Bank loans and overdrafts 4,900 6,000 7,575
---------- ---------- ----------
7,623 8,491 8,135
---------- ---------- ----------
Total assets less current liabilities 265,527 235,328 238,080
Non-current liabilities (20,009) (20,009) (20,009)
----------- ----------- -----------
Net assets 245,518 215,319 218,071
====== ====== ======
Equity attributable to equity shareholders
Called up share capital 25,194 27,098 25,414
Capital redemption reserve 20,222 18,318 20,002
Other capital reserves 195,111 165,591 167,325
Retained earnings 4,991 4,312 5,330
----------- ----------- ----------
Total equity 245,518 215,319 218,071
====== ====== ======
Net asset value per ordinary share (note 4) 243.63p 198.65p 214.52p
====== ====== ======
Page 6 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Consolidated Cash Flow Statement
for the half year ended 30 November 2005
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 November 2005 30 November 2004 31 May
Restated 2005
(note 6) Restated
£'000 £'000 (note 5)
£'000
Net cash inflow from operating activities (note 8) 7,396 12,645 21,374
--------- --------- ---------
Net cash inflow before use of financing 7,396 12,645 21,374
Net cash outflow from financing activities (5,145) (11,879) (22,223)
---------- ---------- ----------
Net increase/(decrease) in cash and cash
equivalents 2,251 766 (849)
Cash and cash equivalents at the start of the period (361) 488 488
---------- ---------- ----------
Cash and cash equivalents at the period end 1,890 1,254 (361)
====== ====== ======
Notes to the Accounts
1. Accounting Policies
(a) Basis of preparation
The consolidated financial information for the half year ended 30 November 2005 has been prepared
using the accounting policies expected to be used in the Group's annual accounts for the year
ending 31 May 2006. These accounting policies will be based on International Financial Reporting
Standards ('IFRS'), comprising standards and interpretations approved by the International
Accounting Standards Board ('IASB'), together with interpretations of the International Accounting
Standards and Standing Interpretations Committee approved by the International Accounting
Standards Committee ('IASC') that remain in effect, to the extent that IFRS have been adopted by
the European Union, for the Group's year ending 31 May 2006.
The accounts have been prepared on the historical cost basis, except for the revaluation of
certain financial instruments. The principal accounting policies adopted are set out below.
Where presentational guidance set out in the Statement of Recommended Practice ('the SORP') for
investment trusts issued by the Association of Investment Trust Companies ('the AITC') in January
2003 is consistent with the requirements of IFRS, the directors have sought to prepare the
financial statements on a basis compliant with the recommendations of the SORP.
Page 7 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
1. (b) First time adoption of IFRS
The date of transition to IFRS for the Group is 1 June 2005. The IFRS accounting policies set out
herein have been applied retrospectively to the opening balance sheet as at 1 June 2004 and all
subsequent periods. The disclosures required by First-time Adoption of International Financial
Reporting Standards ('IFRS 1') concerning the transition from UK GAAP to IFRS are given in notes 5,
6 and 7.
1. (c) Basis of consolidation
The Group accounts consolidate the accounts of the Company and of its wholly owned subsidiary
undertaking, Henderson Smaller Companies Finance Limited.
1. (d) Investments held at fair value through profit or loss
All investments are designated upon initial recognition as held at fair value through profit or
loss. Assets are de-recognised at the trade date of the disposal. Proceeds will be measured at fair
value, which will be regarded as the proceeds of sale less any transaction costs. The fair value of
the financial instruments is based on their quoted bid price at the balance sheet date, without
deduction for the estimated future selling costs. Unquoted investments are valued by the directors
using primary valuation techniques such as earnings, multiples, recent transactions and net assets.
Where fair value cannot reliably be measured the investment will be carried at the previous
reporting date value unless there is evidence that the investment has since been impaired, in which
case the value will be reduced.
Changes in the fair value of investments held at fair value through profit and or loss and gains and
losses on disposal are recognised in the Income Statement as 'Gains or losses on investments held at
fair value through profit or loss'. Also included within this caption are transaction costs in
relation to the purchase or sale of investments, including the difference between the purchase price
of an investment and its bid price at the date of purchase.
1. (e) Presentation of Income Statement
In order to better reflect the activities of an investment trust company, and in accordance with
guidance issued by the Association of Investment Trust Companies ('AITC'), supplementary information
which analyses the Income Statement between items of a revenue and capital nature has been presented
alongside the Income Statement. In accordance with the Company's status as a UK investment company
under section 266 of the Companies Act 1985, net capital returns may not be distributed by way of
dividend. Additionally, the net revenue is the measure the directors believe appropriate in
assessing the Group's compliance with certain requirements set out in section 842 of the Income and
Corporation Taxes Act 1988.
Page 8 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
1. (f) Income
Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis.
Special dividends are treated as income or as capital, depending on the facts of each individual
case. Income from fixed interest debt securities is recognised using the effective interest rate
method. The trading profits of the subsidiary undertaking, which represent realised gains and losses
on the sale of current asset investments, are dealt with in the revenue column of the Income
Statement as a revenue item. Bank deposit interest is accounted for on an accruals basis.
1. (g) Expenses
All expenses and interest payable are accounted for on an accruals basis. All administration
expenses, including the management fee and interest payable, are charged to the revenue column of
the Income Statement. Expenses which are incidental to the purchase or sale of an investment are
charged to the capital column of the Income Statement and allocated to the other capital reserves.
Purchase and sale transaction costs for the half year ended 30 November 2005 were £195,000 (half
year ended 30 November 2004: £135,000; year ended 31 May 2005: £366,000). These comprise mainly
stamp duty and commission.
Any performance fees payable are allocated wholly to capital, reflecting the fact that, although
they are calculated on a total return basis, they are expected to be attributed largely, if not
wholly, to capital performance.
1. (h) Deferred taxation
Deferred taxation is provided on all taxable temporary differences that have originated but not
reversed by the balance sheet date, other than those differences regarded as permanent. Any
liability to deferred tax is provided at the average rate of tax expected to apply, based on tax law
that had been enacted or substantially enacted by the balance sheet date. A deferred tax asset is
recognised only to the extent that it is considered probable that sufficient taxable profits will be
available to allow the deferred tax benefit of that asset to be utilised. Deferred tax assets and
liabilities are not discounted to reflect the time value of money.
1. (i) Foreign currency
For the purposes of the consolidated accounts, the results and financial position of each entity is
expressed in pounds sterling, which is the functional currency of the Company and the presentational
currency of the Group. Sterling is the functional currency because it is the currency of the
primary economic environment in which the Group operates.
Transactions recorded in overseas currencies during the year are translated into sterling at the
appropriate daily exchange rates. Assets and liabilities denominated in overseas currencies at the
balance sheet date are translated into sterling at the exchange rates ruling at the date.
Page 9 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
1. (j) Cash and cash equivalents
Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash and that are subject to an
insignificant risk of changes in value.
1. (k) Bank borrowings
Interest-bearing bank loans and overdrafts are recorded as the proceeds received, net of direct
issues costs. Finance charges, including premiums payable on settlement or redemption and direct
issue costs, are accounted for on an accruals basis in the Income Statement using the effective
interest rate method and are added to the carrying amount of the instrument to the extent that they
are not settled in the period in which they arise.
2. Earnings per ordinary share
The earnings per ordinary share figure is based on the net gain for the half year of £30,287,000 (half
year ended 30 November 2004: £27,210,000; year ended 31 May 2005: £41,509,000) and on 101,282,566 (half
year ended 30 November 2004: 110,044,125; year ended 31 May 2005: 108,747,775) ordinary shares, being the
weighted average number of ordinary shares in issue during the period.
The earnings per ordinary share figure detailed above can be further analysed between revenue and
capital, as below.
(Unaudited) (Unaudited) (Audited)
30 November 2005 30 November 2004 31 May 2005 Restated
Restated (note 6) (note 5)
£'000 £'000 £'000
Net revenue gain 827 556 1,563
Net capital gain 29,460 26,654 39,946
---------- --------- --------
Net total gain 30,287 27,210 41,509
===== ===== =====
Weighed average number of
ordinary shares in issue during
the period 101,282,566 110,044,125 108,747,775
pence pence pence
Revenue earnings per ordinary
share 0.81 0.51 1.44
Capital earnings per ordinary
share 29.09 24.22 36.73
-------- ------- -------
Total earnings per ordinary share 29.90 24.73 38.17
===== ===== =====
Page 10 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
3. Ordinary share capital
At 30 November 2005 there were 100,776,282 ordinary shares in issue (30 November 2004: 108,391,840; 31
May 2005: 101,656,282). During the half year ended 30 November 2005 the Company bought 880,000 of its own
issued ordinary shares in the market for cancellation (half year ended 30 November 2004: 6,370,000; year
ended 31 May 2005: 13,105,558). The cost of the share buy-backs, including stamp duty, amounted to
£1,674,000 (half year ended 30 November 2004: £9,273,000; year ended 31 May 2005: £20,831,000).
4. Net asset value per share
The net asset value per ordinary share is based on the net assets attributed to equity shareholders of
£245,518,000 (half year ended 30 November 2004: £215,319,000 as restated; year ended 31 May 2005;
£218,071,000 as restated) and on 100,776,282 (half year ended 30 November 2004: 108,391,840; year ended
31 May 2005; 101,656,282) ordinary shares, being the number of ordinary shares in issue at the period
end.
5. (a) Restatement of balances as at and for the year ended 31 May 2005
As at 1 June 2005 the Company adopted International Financial Reporting Standards. In accordance
with IFRS 1 (First-time Adoption of International Financial Reporting Standards) the following is a
reconciliation of the results as at and for the year ended 31 May 2005, previously reported under
the applicable UK Accounting Standards and the SORP, to the restated IFRS results.
Page 11 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
(Audited) Effect of Restated 31 May
Previously reported 31 transition to 2005
IFRS
May 2005 £'000
£'000 £'000
Note
Investments 1 245,227 (169) 245,058
Current assets 1,157 - 1,157
Creditors: amounts falling due
within one year 2 (9,304) 1,169 (8,135)
---------- -------- ----------
Total assets less current
liabilities 237,080 1,000 238,080
Creditors: amounts falling due
after one year 3 (20,000) (9) (20,009)
---------- -------- ----------
217,080 991 218,071
====== ===== ======
Capital and reverses
Called up share capital:
ordinary shares 25,414 - 25,414
preference stock 3 9 (9) -
Capital redemption reserve 20,002 - 20,002
Capital reserve - realised 1, 4 123,221 (123,221) -
Capital reserve - unrealised/
revaluation reserve 1, 4 44,273 (44,273) -
Other capital reserves 1, 4 - 167,325 167,325
Revenue reserve/Retained
earnings 2 4,161 1,169 5,330
---------- -------- ----------
217,080 991 218,071
====== ===== ======
Notes to the reconciliation
1. Investments are classified as held at fair value through profit or loss under IFRS and
are carried at bid prices which total their fair value of £245,058,000. Previously, under UK GAAP,
they were carried at mid prices. The aggregate difference, being a revaluation downwards of
£169,000, also decreases other capital reserves.
2. No provision has been made for the final dividend on the ordinary shares for the year
ended 31 May 2005 of £1,169,000. Under IFRS, the final dividend is not recognised until approved by
the shareholders.
3. Under IFRS the Company's preference stock is classified as debt.
4. The 'capital reserve - realised' and the 'capital reserve - unrealised' are now
reclassified as 'other capital reserves'.
Page 12 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
5. (b) Reconciliation of the Statement of Total Return to the Income Statement for the year ended 31 May
2005
Under IFRS the Income Statement is the equivalent of the Statement of Total Return as reported
previously.
2005 EPS
impact
Note £'000 pence
Net return on ordinary activities after taxation
per Statement of Total Return 41,484 -
Change from mid to bid basis at 31 May 2004 1 194 0.18
Change from mid to bid basis at 31 May 2005 1 (169) (0.16)
-------- -------
Net gain per Income Statement 41,509 0.02
===== ====
Notes to the reconciliation
1. The portfolio valuations at 31 May 2004 and 31 May 2005 are valued at fair value under
IFRS. These values are lower than the previous valuations by £194,000 and £169,000 respectively.
5. (c) Reconciliation of the Cash Flow Statement for the year ended 31 May 2005
(Audited) Effect of Adjusted
Previously transition to cash flows
reported IFRS 2005
cash flows 2005 £'000
Note £'000 £'000
Net cash inflow from operating
activities 1 4,410 16,964 21,374
Returns on investments and
servicing of finance 1 (3,503) 3,503 -
Taxation - - -
Net cash inflow from financial
investment 20,467 (20,467) -
Equity dividends paid 2 (1,106) 1,106 -
--------- --------- ---------
Net cash inflow before
financing 1, 2 20,268 1,106 21,374
Financing 1, 2 (21,117) (1,106) (22,223)
-------- ------- --------
Decrease in cash (849) - (849)
===== ==== =====
Page 13 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
Notes to the reconciliation
1. Servicing of finance, taxation and net cash inflow from financial investment have now been
analysed within operating activities.
2. Equity dividends paid on equity shares are now analysed within financing.
6. (a) Restatement of balances as at and for the half year ended 30 November 2004
As at 1 June 2005 the Company adopted International Financial Reporting Standards. In accordance with
IFRS 1 the following is a reconciliation of the results as at and for the half year ended 30 November
2004, previously reported under the applicable UK Accounting Standards and the SORP, to the restated
IFRS results.
(Unaudited) Effect of Restated
Previously reported transition to 30 November 2004
30 November 2004 IFRS
£'000 £'000 £'000
Note
Investments 1 241,239 (172) 241,067
Current assets 2,752 - 2,752
Creditors: amounts falling
due within one year (8,491) - (8,491)
--------- -------- ----------
Total assets less current
liabilities 235,500 (172) 235,328
Creditors: amounts falling
due after one year 2 (20,000) (9) (20,009)
----------- -------- -----------
215,500 (181) 215,319
====== ===== ======
Capital and reserves
Called up share capital:
ordinary shares 27,098 - 27,098
preference stock 2 9 (9) -
Capital redemption reserve 18,318 - 18,318
Capital reserve - realised 1, 3 120,939 (120,939) -
Capital reserve - unrealised/
revaluation reserve 1, 3 44,824 (44,824) -
Other capital reserves 1, 3 - 165,591 165,591
Revenue reserve/Retained
earnings 4,312 - 4,312
---------- --------- ----------
215,500 (181) 215,319
====== ===== ======
Page 14 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
Notes to the reconciliation
1. Investments are classified as held at fair value through profit or loss under IFRS and are
carried at bid prices which total their fair value of £241,067,000. Previously, under UK GAAP, they
were carried at mid prices. The aggregate difference, being a revaluation downwards of £172,000, also
decreases other capital reserves.
2. Under IFRS the Company's preference stock is classified as debt.
3. The 'capital reserve - realised' and the 'capital reserve - unrealised' are now
reclassified as 'other capital reserves'.
6. (b) Reconciliation of the Statement of Total Return to the Income Statement for the half year ended 30
November 2004
Under IFRS the Income Statement is the equivalent of the Statement of Total Return as reported
previously.
2004 EPS
impact
Note £'000 Pence
Net return on ordinary activities after
taxation per Statement of Total
Return 27,188 -
Change from mid to bid basis at 31
May 2004 1 194 0.18
Change from mid to bid basis at 30
November 2004 1 (172) (0.16)
-------- --------
Net gain per Income Statement 27,210 0.02
===== =====
Notes to the reconciliation
1. The portfolio valuations at 31 May 2004 and 30 November 2004 are valued at fair value
under IFRS. These values are lower than the previous valuations by £194,000 and £172,000
respectively.
Page 15 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
6. (c) Reconciliation of the Cash Flow Statement for the half year ended 30 November 2004
(Unaudited) Effect of Adjusted
Previously transition to
reported cash IFRS cash flows 2004
flows 2004
£'000 £'000 £'000
Note
Net cash inflow from operating
activities 1 2,665 9,980 12,645
Returns on investments and servicing
of finance 1 (2,321) 2,321 -
Taxation - - -
Net cash inflow from financial
investment 12,301 (12,301) -
Equity dividends paid 2 (1,106) 1,106 -
-------- -------- --------
Net cash inflow before financing 11,539 1,106 12,645
Financing 1, 2 (10,773) (1,106) (11,879)
-------- -------- --------
Increase in cash 766 - 766
===== ==== =====
Notes to the reconciliation
1. Servicing of finance, taxation and net cash inflow from financial investment have now been
analysed within operating activities.
2. Equity dividends paid are now analysed within financing.
7. Restatement of opening balances as at 31 May 2004
As at 1 June 2005 the Company adopted International Financial Reporting Standards. In accordance with IFRS
1 the following is a reconciliation of the results as at and for the year ended 31 May 2004, previously
reported under the applicable UK Accounting Standards and the SORP, to the restated IFRS results.
Page 16 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
(Audited) Previously Effect of Restated
reported 31 May 2004 transition to 31 May 2004
£'000 IFRS
£'000
Note £'000
Investments 1 226,669 (194) 226,475
Current assets 1,894 - 1,894
Creditors: amounts falling
due within one year 2 (11,020) 1,148 (9,872)
---------- ---------- ----------
Total assets less current
liabilities 217,543 954 218,497
Creditors: amounts falling 3
due after one year (20,000) (9) (20,009)
---------- -------- ----------
197,543 945 198,488
====== ==== ======
Capital and reserves
Called up share capital
ordinary shares 28,691 - 28,691
preference stock 3 9 (9) -
Capital redemption reserve 16,725 - 16,725
Capital reserve - realised 4 121,809 (121,809) -
Capital reserve - unrealised/
revaluation reserve 4 26,595 (26,595) -
Other capital reserves 1, 4 - 148,210 148,210
Revenue reserve/Retained
earnings 2 3,714 1,148 4,862
---------- ---------- ----------
197,543 945 198,488
====== ====== ======
Notes to the reconciliation
1. Investments are classified as held at fair value under IFRS and are carried at bid prices
which total their fair value of £226,475,000. Previously, under UK GAAP, they were carried at mid
prices. The aggregate difference, being a revaluation downwards of £194,000, also decreases other
capital reserves.
2. No provision has been made for the final dividend on the ordinary shares for the year ended
31 May 2004 of £1,148,000. Under IFRS, the final dividend is not recognised until approved by the
shareholders.
3. Under IFRS the Company's preference stock is classified as debt.
4. The 'capital reserve - realised' and the 'capital reserve - unrealised' are now
reclassified as 'other capital reserves'.
Page 17 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
8. Reconciliation of profit before taxation to net cash inflow from operating activities
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended 30 Year ended 31 May
30 November 2005 November 2004 2005
Restated Restated
(note 6) (note 5)
£'000 £'000 £'000
Profit before taxation 30,287 27,210 41,509
Gains on investments held at fair
value through profit or loss (29,460) (26,654) (39,946)
Increase/(decrease) in purchases
for future settlement creditor 2,089 1,090 (894)
Increase in sales for future
settlement debtor (604) (851) (2)
Net sales of investments 4,642 12,062 21,363
Decrease in accrued income 428 655 188
(Increase)/decrease in other debtors
Increase/(decrease) in accruals (58) 104 77
Taxation on investment 77 (971) (918)
(5) - (3)
--------- -------- --------
7,396 12,645 21,374
===== ===== =====
9. Interim dividend
The Company has not declared an interim dividend (2004: nil)
10. Comparative information
The financial information contained in these interim results does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985. The financial information for the half years ended 30
November 2005 and 30 November 2004 (as restated) has not been audited.
The information for the year ended 31 May 2005 has been extracted from the latest published audited accounts
and restated to comply with IFRS (see note 5). The audited accounts for the year ended 2005 have been filed
with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or
statement under either section 237(2) or (3) of the Companies Act 1985.
Page 18 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Notes to the Accounts, continued
11. Interim Report
The full interim report will be posted to shareholders in February 2006 and copies will be available
thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M 2DA.
Page 19 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
Investment Portfolio
at 30 November 2005
Valuation at Valuation at
30 November 30 November
2005 2005
£'000 £'000
W S Atkins 12,288 Hedlam 2,567
T & F Informa 12,262 Forth Ports 2,562
Bellway 8,252 Restaurant Group 2,537
Balfour Beatty 6,384 VT Group 2,503
Domino Printing 6,300 Dana Petroleum 2,500
WSP 6,069 Charter 2,500
Bovis Homes 5,804 Umbro 2,398
Interserve 5,440 CSR 2,362
Savills 5,324 Spectris 2,312
Capital & Regional Properties 5,261 Ultra Electronics 2,275
Grainger Trust 4,560 Rotork 2,248
ICG Intermediate Capital 4,379 Chrysalis 2,189
Erinaceous 4,230 RPS Group 2,168
Laird 4,090 Big Yellow Group 2,153
Carillion 3,775 Topps Tiles 2,145
SIG 3,575 Robert Walters 2,032
Meggitt 3,515 Victrex 2,008
Enodis 3,402 *Fun Technologies 1,967
Anite 3,393 Intec Telecom Systems 1,955
Paragon 3,360 Greggs 1,915
Carter & Carter 3,270 London Merchant Securities 1,884
Renishaw 3,238 Melrose 1,874
Burren Energy 2,834 E2V Holdings 1,873
Greene King 2,815 Ricardo 1,859
Shaftesbury 2,800 House of Fraser 1,856
Premier Oil 2,785 Halford 1,792
Mouchel Parkman 2,782 Euromoney Institutional Investor 1,786
royalblue 2,668 Isotron 1,767
BSS Group 2,666 Ulster Television 1,680
Gyrus Group 2,623 *IBS OPENSystems 1,672
* quoted on the Alternative Investment Market
These investments total £203,483,000 or 75.4% of the portfolio.
Page 20 of 20
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2005
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
James de Sausmarez
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 3349
or
Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors
Telephone: 020 7818 3198
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 22nd November 2024
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