Interim Management Statement

RNS Number : 3430Q

Herald Investment Trust PLC

08 April 2009

 

HERALD INVESTMENT TRUST plc

Interim Management Statement - 3 months to 31 March 2009

Herald's objective is to achieve capital appreciation through investments in smaller quoted companies, in the areas of telecommunications, multi-media and technology (TMT). Investments may be made across the world. The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies.

Review of the Period

	Over the period, the Company's net asset value increased by 5.6% compared to a rise in the benchmark of    1.6% while the share price rose by 8.4%. All figures are total return.
	A final dividend of 1.55p per share together with a special dividend of 3.45p per share, representing the recovery of VAT from HMRC, is proposed and subject to approval at the Annual General Meeting on 22 April 2009. The dividends will be paid on 30 April 2009.
	In the three months to 31 March 2009, the Company made net investments totalling £6.3 million and realised profits of £3.9 million.
	During the quarter, the Company bought back 800,000 of its own shares for cancellation at a cost of £1,525,000, creating an uplift of 0.23% in the net asset value per share.
	At the end of March 2009, £50 million had been drawn under the £75 million multi-currency facility. The fair value of the liabilities in respect of the related interest rate swap contract at 31 March 2009 was a liability of £10,384,000 which was based on the marked to market value.
Geographic Analysis of Total Assets					Top Ten Equity Holdings
Name		% of total assets at 31/03/09	% of total assets at 31/12/08		Name	% of total assets at 31/03/09
UK		55.2	51.3		Imagination Technologies Group	4.3
Americas		25.1	25.1		SDL	4.3
Asia Pacific		6.3	5.4		Telecom Plus	3.0
Continental Europe		5.8	6.1		Advent Software	1.7
Emerging Markets		0.2	0.3		Phoenix IT Group	1.6
Net Liquid Assets		7.4	11.8		Group NBT	1.6
					SQS Software Quality Systems	1.5
					Websense	1.4
					Epiq Systems	1.4
					StatPro Group	1.3
Total		100.0	100.0		Total	22.1

Performance

	%
Capital	3 Months	1 Year	3 Years	5 Years
Share Price†	8.4	-28.0	-48.8	-39.7
NAV†	5.6	-25.0	-39.1	-33.3
Benchmark*	1.4	-32.2	-42.8	-20.0
Total Return
Share Price†	8.4	-27.9	-48.5	-39.3
NAV†	5.6	-24.9	-38.8	-32.8
Benchmark*	1.6	-30.7	-40.1	-13.1

†   Source: Thomson Financial Datastream

* Source: HSBC.  The benchmark was changed on 1 January 2006 from 2/3 Hoare Govett Smaller Companies Index (extended capital gains ex. Investment companies) and 1/3 Russell 2000 (small cap) Technology Index (in sterling terms) to 2/3 Hoare Govett Smaller Companies Index plus AIM (capital gains ex. Investment companies) and 1/3 Russell 2000 (small cap) Technology Index (in sterling terms).  

Past performance is not a guide to future performance

General Information
	31/03/09	31/12/08
Equities:
UK	£133.9m	£126.5m
Overseas	£85.4m	£84.4m
	£219.3m	£210.9m
Government bonds	£32.8m	£32.4m
Corporate bonds	£3.3m	-
Net liquid assets	£20.5m	£32.5m
Bank loans	(£50.0m)	(£50.0m)
Derivative financial instruments	(£10.4m)	(£15.1m)
Equity shareholders' funds	£215.5m	£210.7m
Net asset value per ordinary share¶	260.9p	252.6p
Share price	199.5p	184.0p
Discount	23.5%	27.2%
Actual gearing to equity ratio*	102	101
Potential gearing ratio†	128	131
Net (borrowings)/(swap)/cash as a % of shareholders' funds	(16.9%)	(15.9%)

¶  Net asset value per share at 31 March 2009 excludes current year income and is stated after deduction of the proposed final dividend of 1.55p and a special dividend of 3.45p, payable 30 April 2009 (ex-dividend 8 April 2009), in accordance with AIC guidance.

* Total assets (including all debt used for investment purposes) less all cash and fixed interest securities (excluding convertibles and corporate bonds) divided by shareholders' funds.

† Total assets (including all debt used for investment purposes) divided by shareholders' funds.

The Company's Net Asset Value is calculated daily and can be viewed on the London Stock Exchange website at www.londonstockexchange.com

The Share Price is published daily in the Financial Times.

The interim management statement is available on the Company's website www.heralduk.com

For further information contact: Katie Potts on 020 7553 6300

 

END

 

 

IMSUUUQWCUPBUBR