Final Results

INVESCO Asia Trust PLC 20 June 2001 INVESCO ASIA TRUST Preliminary Announcement Unaudited Final Results Chairman's Statement May 2001 The pressure on global equity markets over the period under review took its toll on Asian stock markets. The unwinding of the excesses in the Telecommunication-Media-Technology sectors and fears of recession triggered a massive sell-off in Asian markets. In these testing conditions, the net asset value of the Company fell by 31.0% by comparison with a fall of 26.3% in the MSCI Index over the year to 30 April 2001. In response to the sharp deterioration in markets and outlook, the Company's borrowings were repaid and the portfolio has not been geared since the interim stage. Liquidity levels were increased in the latter half of the year, peaking at around £13 million. Over half of this amount was recommitted to equity markets before the year-end, as opportunities were taken to reposition the portfolio towards what were seen to be better quality stocks with good earnings prospects. More recently, Asian stocks have shown signs of improving performance as investors have returned, attracted to oversold stock positions and cheap valuations and encouraged by improving liquidity as interest rates fall. The pick up in liquidity that has accompanied an easing in monetary policy by global central banks can be seen as a precursor to a return to growth, and investors have been buying in anticipation. Outlook It has been evident for some time that many of the Region's better-managed companies have acknowledged the need to restructure their operations so as to meet the increasing challenge of international competition. Previous high levels of gearing have been reduced and operating improvements introduced, and the forward-looking companies are well placed to benefit from a pick-up in the global economy. Against this background, Asian markets should be able to deliver better performance in both absolute and relative terms. Dividends In my statement at this time last year I advised shareholders that in future years only the net revenue of the current year would be considered for distribution to shareholders as dividend. In the year under review income fell from £1,390,000 to £1,216,000 and, although management expenses were lower, the resulting net revenue available for distribution fell from £392,000 to £338,000. Accordingly, your Board recommends payment of a final dividend of 0.3p per ordinary share (2000:0.65p) which, if approved, will allow the transfer to reserves of £20,000. The dividend, if approved , will be payable on 27 July 2001 to shareholders registered on 29 June 2001. Share Buy-Backs For much of the year the Company's ordinary shares have traded on a wider than average discount. To ease the demand/supply flow we have again exercised the share buy-back authority to purchase for cancellation a total of 5 million shares, bringing the ordinary shares in issue at the year-end to 105,961,992. The 5 million shares were acquired at discounts to the then prevailing net asset values to the benefit of investors continuing to hold the shares. Annual General Meeting Your Board believe it prudent in these volatile market conditions, to maintain the flexibility both to buy back shares and to issue new shares as and when appropriate. Therefore, as Special Business of the Annual General Meeting, two Resolutions will be proposed as Special Resolutions. Under the first, we are seeking renewal of the authority to issue new ordinary shares within prescribed limits. To avoid dilution of the interests of existing shareholders, these powers will not be exercised at an issue price below the prevailing net asset value per share. Second, we seek renewal of the authority to buy back up to 14.99% of the Company's issued ordinary shares. Acquisitions under this authority will be subject to the restrictions described in the Notice of Annual General Meeting and will only be made at market prices below the prevailing net asset value. I look forward to meeting you at the Annual General Meeting when there will be a presentation by Alfred Ho, the investment manager, who will speak about the Company's performance and the outlook for investment in the Region. This will be followed by an opportunity to meet informally over refreshments after the meeting. Robin Baillie Chairman 14 June 2001 Statement of Total Return (incorporating the revenue account) for the year ended 30 April 2001 Unaudited 2000 Note Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses) on 1 - (26,536)(26,536) - 16,181 16,181 investments Gains/(losses) on foreign - 122 122 - (86) (86) currency revaluation Income 2 1,216 - 1,216 1,390 - 1,390 Investment management fee 3 (147) (441) (588) (177) (532) (709) Other expenses 4 (393) (14) (407) (461) (22) (483) Net return before finance 676 (26,869)(26,193) 752 1 5,541 16,293 costs and taxation Interest payable and similar 5 (81) (244) (325) (76) (228) (304) charges Return on ordinary 595 (27,113)(26,518) 676 15,313 15,989 activities before tax Tax on ordinary activities 6 (257) 181 (76) (284) 204 (80) Return on ordinary 338 (26,932)(26,594) 392 15,517 15,909 activities after tax for the financial year Dividend in respect of 7 (318) - (318) (695) - (695) equity shares Transfer to/(from) reserves 20 (26,932) 26,912 (303) 15,517 15,214 ------------------------------------------------------------------------------- Return per ordinary share: Basic 8 0.32p (25.19)p (24.87)p 0.35p 13.82p 14.17p ------------------------------------------------------------------------------- The Revenue column of this statement is the Revenue account of the Company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. Reconciliation of Movement in Shareholders' Funds for the year ended 30 April 2001 2000 Unaudited £'000 £'000 Revenue return for the year 20 (303) Capital return for the year (26,932) 15,517 Proceeds from liquidation of Drayton Far Eastern Trust - 1,001 Shares purchased for cancellation (3,132) (1,072) Net movement in Shareholders' funds (30,044) 15,143 Opening Shareholders' funds 97,054 81,911 Closing Shareholders' funds 67,010 97,054 ------------------------------------------------------------------------------ Balance Sheet at 30 April 2001 2000 Unaudited £'000 £'000 Fixed assets Investments 60,226 92,616 Current assets Debtors 1,211 3,072 Cash at bank 6,197 5,451 7,408 8,523 Creditors: amounts falling due within one year 624 4,085 Net current assets 6,784 4,438 Total assets less current liabilities 67,010 97,054 ------------------------------------------------------------------------------- Capital and reserves Called-up share capital 10,596 11,096 Share premium account 74,588 74,588 Other reserves Capital redemption reserve 650 150 Special reserve 25,796 28,928 Capital reserve - realised (41,547) (37,205) Capital reserve - unrealised (3,601) 18,989 Revenue reserve 528 508 Equity Shareholders' funds 67,010 97,054 ------------------------------------------------------------------------------- Net asset value per ordinary share Basic 63.2p 87.5p Fully-diluted (AITC Basis) 69.6p 89.6p ------------------------------------------------------------------------------- Cash Flow Statement for the year ended 30 April 2001 2000 Unaudited £'000 £'000 Cash (outflow)/inflow from operating activities (18) 229 Servicing of finance (331) (299) Taxation 204 338 Capital expenditure and financial investment 7,654 420 Equity dividends paid (695) (1,057) Net cash inflow/(outflow) before management of liquid 6,814 (369) resources and financing Management of liquid resources (1,640) 1,372 Financing (6,192) 2,989 (Decrease)/increase in cash (1,018) 3,992 ------------------------------------------------------------------------------- Reconciliation of cash flow to movement in net funds 2001 2000 Unaudited £'000 £'000 (Decrease)/increase in cash (1,018) 3,992 Cash outflow/(inflow) from decrease/(increase) in debt 3,060 (3,060) Cash outflow/(inflow) from increase/(decrease) in liquid 1,640 (1,372) resources Change in net funds/(debt) resulting from cash flows 3,682 (440) Translation difference 124 (86) Movement in net funds/(debt) in the year 3,806 (526) Net funds at beginning of year 2,391 2,917 Net funds at end of year 6,197 2,391 ------------------------------------------------------------------------------- The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 April 2001 or 2000. The financial information for 2000 is derived from the statutory accounts for 2000 which have been delivered to the Registrar of Companies. The auditors have reported on the 2000 statutory accounts and their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2001 will be finalised on the basis of the information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Notes to the Financial Statements * for the year ended 30 April 2001 2001 2000 £'000 £'000 1. Gains on investments Realised (losses)/gains on sales (3,946) 8,886 (Decrease)/increase in unrealised appreciation (22,590) 7,295 (Losses)/gains on investments (26,536) 16,181 2. Income 2001 2000 £'000 £'000 Income from investments Overseas dividends 1,044 1,278 Overseas fixed interest income - 6 1,044 1,284 Other income Deposit interest 172 106 Total income 1,216 1,390 ------------------------------------------------------------------------------- Total income comprises: Dividends 1,044 1,278 Interest 172 112 1,216 1,390 ------------------------------------------------------------------------------- 3. Investment management fee 2001 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Investment management fee 147 441 588 177 532 709 ------------------------------------------------------------------------------ 4. Other expenses 2001 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 General expenses 300 - 300 371 - 371 Directors' fees 68 - 68 68 - 68 Auditors' remuneration - for audit 17 - 17 17 - 17 services Auditors' remuneration - for other 8 - 8 5 - 5 services Transaction dealing charge - 14 14 - 22 22 393 14 407 461 22 483 ------------------------------------------------------------------------------- 5. Interest payable and similar charges 2001 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Overdraft interest 10 30 40 9 27 36 Term loan repayable within 71 214 285 67 201 268 1 year, not by instalment 81 244 325 76 228 304 ------------------------------------------------------------------------------ 6. Tax on net revenue from ordinary activities 2001 2000 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Tax relief attributable to 181 (181) - 204 (204) - management fee and interest, allocated to capital reserve - realised Overseas tax 76 - 76 80 - 80 257 (181) 76 284 (204) 80 ------------------------------------------------------------------------------- 7. Dividends 2001 2000 £'000 £'000 Dividend on equity shares Ordinary - proposed dividend of 0.3p per share (2000: 0.65p) 318 695 318 695 ------------------------------------------------------------------------------- 8. Return per ordinary share Basic revenue return per ordinary share is based on the net revenue return on ordinary activities after taxation and on 106,915,417 (2000: 112,289,389) ordinary shares, being the weighted average number of ordinary shares in issue throughout the year. Basic capital return per ordinary share is based on the net capital return on ordinary activities after taxation and on 106,915,417 (2000: 112,289,389) ordinary shares, being the weighted average number of ordinary shares in issue throughout the year. Following the adoption of FRS 14 ''Earnings per Share'', as the ordinary share price remained under the warrant exercise price, the warrants are not dilutive and therefore no diluted or fully-diluted return per ordinary share has been calculated. ------------------------------------------------------------------------------ * These notes are an abridged version of what will be published in the Annual Report and Accounts which are expected to be published shortly.

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