Interim Results

JPMorgan Claverhouse IT PLC 15 August 2007 LONDON STOCK EXCHANGE ANNOUNCEMENT JPMORGAN CLAVERHOUSE INVESTMENT TRUST PLC INTERIM RESULTS Performance In the first six months of the financial year the Company produced a total return on net assets of +5.8%1, compared with a total return of +7.6% from the Company's benchmark, the FTSE All-Share Index. The total return to shareholders was +4.3%. Although it is disappointing to report underperformance, this should be seen against the record of annual outperformance against the benchmark for the last four consecutive years. Revenue and Dividends Earnings per share for the six months to 30th June 2007 were 9.15p, which compares with 7.84p for the corresponding period last year. The Directors have already declared two quarterly dividends of 3.30p each for the current financial year (2006 - 2.80p). It is the Directors' intention to continue the Company's practice of increasing dividends each year and current revenue forecasts indicate that there is scope to grow the total annual dividend significantly ahead of the rate of inflation. Share Buy-backs The Company continues to maintain an active share buy-back programme. For the six months to 30th June 2007, 1,559,294 shares were repurchased at an average discount of 5.31%1 and a total cost of £8,867,816. Since the period end a further 340,000 shares have been repurchased. The purpose of the Board's share buyback policy is to minimise the absolute level and volatility of the discount at which the Company's shares trade in the market. The Board believes that it has been successful in achieving those objectives, with the Company's shares trading at an average discount of 5.03%1 during the six months to 30th June 2007. Unfortunately due to an institutional shareholder placing a sale order in the Company's shares just before the market closed on Friday 29th June 2007, the discount widened temporarily to 6.8%1. I am pleased to report that the discount narrowed to more normal levels shortly thereafter and as at the time of writing it is approximately 5%1. VAT Case As previously advised to shareholders, the Company lodged a joint appeal with the Association of Investment Companies ('AIC') for VAT to be removed from the payment of investment trust management fees. The costs of the case are being borne by the investment trust industry, through the AIC. We are delighted that the European Court of Justice ('ECJ') has found in favour of the Company and the AIC in declaring that the management expenses of investment trusts should be exempt from VAT in the same way as unit trusts and open ended investment companies. This case was started in 2004, but the result has been worth the wait. The Company paid £460,000 in VAT on management and performance fees paid last year alone. In future, this money, together with refunds relating to earlier years, should be available for shareholders. The benefit will compound into the future and further enhance shareholder value. We now await the Government's move to implement the change in the law to reflect the ECJ judgement to enable refunds to take effect. I expect that this may take a number of months but as soon as we have agreed the amount of such refunds and the timings of repayment, an announcement to shareholders will be made. Change of Name Following shareholder approval at the 2007 Annual General Meeting, the Company changed its name from JPMorgan Fleming Claverhouse Investment Trust plc to JPMorgan Claverhouse Investment Trust plc. The Future In March 2007 I wrote in my statement relating to the 2006 accounts that markets were then experiencing a period of turbulence. Exactly the same circumstances prevail as I write this report. Since 30th June 2007 markets have suffered a further bout of nerves and the Company's share price has seen an uncomfortable setback such that it is now below the price at 31st December 2006. Whilst there are more uncertainties now than there were in March, absent a significant downturn in the World economy, which our Investment Managers do not expect to happen, equities continue to look fairly valued by normal measurements. However, as I wrote in March, equities are a volatile asset class and shareholders must expect to encounter 'rough water' from time to time. Long-term investors should keep faith with equities, which historically have delivered significant real returns. The Board continues to have confidence in your Managers' investment process and we look forward to the delivery of continuing outperformance in the years ahead. Sir Michael Bunbury Bt., KCVO, DL Chairman 13th August 2007 1 Based on net asset value with the Company's debt valued at par. For further information: Jonathan Latter For and on behalf of JPMorgan Asset Management (UK) Limited - Secretary 020 7742 6000 JPMorgan Claverhouse Investment Trust plc Unaudited figures for the six months ended 30th June 2007 Income Statement (Unaudited) (Unaudited) (Audited) Six months ended 3oth June 2007 Six months ended 3oth June Year ended 31st December 2006 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains from investments held at fair value through profit or loss - 12,768 12,768 - 19,159 19,159 - 53,443 53,443 Income from investments 6,805 - 6,805 5,841 - 5,841 11,436 - 11,436 Other interest receivable and similar income 18 - 18 89 - 89 102 - 102 _______ ________ _______ ______ _______ ________ _______ _______ _______ Gross revenue and 6,823 12,768 19,591 5,930 19,159 25,089 11,538 53,443 64,981 capital gains Management fee (note 2) (362) (671) (1,033) (334) (619) (953) (669) (1,242) (1,911) Performance fee (note 2) - 2,138 2,138 - (416) (416) - (1,777) (1,777) Other administrative expenses (409) - (409) (147) - (147) (602) - (602) _______ _______ _______ ______ _______ _______ _______ _______ _______ Net return before finance costs and taxation 6,052 14,255 20,287 5,449 18,124 23,573 10,267 50,424 60,691 Finance costs (524) (973) (1,497) (501) (930) (1,431) (1,010) (1,876) (2,886) _______ _______ _______ ______ _______ _______ _______ _______ _______ Net return before 5,528 13,262 18,790 4,948 17,194 22,142 9,257 48,548 57,805 taxation Taxation - - - - - - (1) - (1) ______ _______ _______ ______ _______ ______ _______ _______ _______ Net return after 5,528 13,262 18,790 4,948 17,194 22,142 9,256 48,548 57,804 taxation ===== ===== ===== ===== ===== ===== ===== ===== ===== Return per share (note 9.15p 21.95p 31.10p 7.84p 27.23p 35.07p 14.84p 77.81p 92.65p 4) All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period. The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information. JPMorgan Claverhouse Investment Trust plc Unaudited figures for the six months ended 30th June 2007 Reconciliation of Movements in Shareholders' Funds (Unaudited) Called up Capital Share Share redemption Capital Revenue capital premium reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 £'000 Six months ended 30th June 2007 (unaudited) At 31st December 2006 15,268 149,641 5,604 169,087 13,143 352,743 Shares bought back and cancelled (390) - 390 (8,868) - (8,868) Capital return from ordinary - - - 13,262 - 13,262 activities Revenue return from ordinary - - - - 5,528 5,528 activities Dividends appropriated in the period - - - - (4,965) (4,965) _______ _______ ________ _______ _______ ________ At 30th June 2007 14,878 149,641 5,994 173,481 13,706 357,700 Six months ended 30th June 2006 (unaudited) At 31st December 2005 16,053 149,641 4,819 136,377 11,564 318,454 Shares bought back and cancelled (509) - 509 (10,154) - (10,154) Capital return from ordinary - - - 17,194 - 17,194 activities Revenue return from ordinary - - - - 4,948 4,948 activities Dividends appropriated in the period - - - - (4,099) (4,099) _______ _______ ________ _______ _______ ________ At 30th June 2006 15,544 149,641 5,328 143,417 12,413 326,343 Year ended 31st December 2006 (audited) At 31st December 2005 16,053 149,641 4,819 136,377 11,564 318,454 Shares bought back and cancelled (785) - 785 (15,838) - (15,838) Capital return from ordinary - - - 48,548 - 48,548 activities Revenue return from ordinary - - - - 9,256 9,256 activities Dividends appropriated in the year - - - - (7,677) (7,677) _______ _______ ________ _______ _______ ________ At 31st December 2006 15,268 149,641 5,604 169,087 13,143 352,743 JPMorgan Claverhouse Investment Trust plc Unaudited figures for the six months ended 30th June 2007 BALANCE SHEET (Audited) (Unaudited) (Unaudited) 31st December 30th June 2007 30th June 2006 2006 £'000 £'000 £'000 Fixed assets Investments at fair value through profit or loss 402,511 367,508 400,902 Current assets Debtors 1,212 20,326 998 Cash at bank and in hand - 6,252 99 _______ _______ _______ 1,212 26,578 1,097 Creditors : Amounts falling due within one year (16,386) (36,900) (17,494) _______ _______ _______ Net current liabilities (15,174) (10,322) (16,397) _______ _______ _______ Total assets less current liabilities 387,337 357,186 384,505 Creditors : Amounts falling due after more than one year (29,637) (29,610) (29,624) Provision for liabilities and charges - (1,233) (2,138) _______ _______ _______ Total net assets 357,700 326,343 352,743 ===== ===== ===== Capital and reserves Called up share capital 14,878 15,544 15,268 Share premium 149,641 149,641 149,641 Capital redemption reserve 5,994 5,328 5,604 Capital reserve 173,481 143,417 169,087 Revenue reserve 13,706 12,413 13,143 _______ _______ _______ Shareholders' funds 357,700 326,343 352,743 ===== ===== ===== Net asset value per share (note 5) 601.1p 524.9p 577.6p CASH FLOW STATEMENT (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th June 30th June 31st December 2007 2006 2006 £'000 £'000 £'000 Net cash inflow from operating activities 3,409 3,346 7,516 Net cash outflow from returns on investments and servicing of finance (1,472) (1,416) (2,838) Tax recovered - 1 1 Net cash inflow from capital expenditure and financial investment 11,158 13,018 13,681 Dividends paid (4,965) (4,099) (7,677) Net cash outflow from financing (8,229) (10,522) (16,507) _______ ______ ______ (Decrease) / increase in cash for the period (99) 328 (5,824) ===== ==== ==== Notes to the Accounts 1. Accounting policies The accounts have been prepared in accordance with United Kingdom Generally accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' dated 31st December 2005. All of the Company's operations are of a continuing nature. The accounting policies applied to these interim accounts are consistent with those applied in the accounts for the year ended 31st December 2006. 2. Management fees and performance fees Management fees are allocated 35% to revenue and 65% to capital in line with the Board's expected long term split of revenue and capital return from the Company's investment portfolio. Performance fees are allocated 100% to capital. Management fees (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th June 2007 30th June 2006 31st December 2006 £'000 £'000 £'000 Management fee - charged to revenue 308 284 569 VAT thereon* 54 50 100 362 334 669 Management fee - charged to capital 571 527 1,057 VAT thereon* 100 92 185 671 619 1,242 Total management fee 879 811 1,626 VAT thereon* 154 142 285 _______ ______ ______ 1,033 953 1,911 ====== ====== ===== Performance fees (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th June 2007 30th June 2006 31st December 2006 £'000 £'000 £'000 Performance fee (write back) / charge (1,820) 355 1,512 VAT provision (write back) / charge* (318) 61 265 _______ ______ ______ (2,138) 416 1,777 ====== ====== ===== *This VAT may be recoverable following the recent declaration by the European Court of Justice that management expenses of investment trusts are eligible for exemption from VAT. 3. Dividends (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th June 2007 30th June 2006 31st December 2006 £'000 £'000 £'000 Fourth quarterly dividend of 4.9p paid March 2,978 2,347 2,347 (2005:3.7p) First quarterly dividend of 3.3p paid June (2006: 2.8p) 1,987 1,752 1,752 Second quarterly dividend of 2.8p paid September N/a N/a 1,736 Third quarterly dividend of 3.0p paid December N/a N/a 1,842 _______ ______ ______ 4,965 4,099 7,677 ====== ====== ===== A second quarterly dividend of 3.3p (2006: 2.8p) per share, amounting to £1,964,000 (2006: £1,736,000), has been declared payable in respect of the period ending 30th June 2007 (30th June 2006). 4. Return per share (Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 30th June 2007 30th June 2006 31st December 2006 £'000 £'000 £'000 Return per share is based on the following: Revenue return 5,528 4,948 9,256 Capital return 13,262 17,194 48,548 _______ ______ ______ Total return 18,790 22,142 57,804 ====== ====== ===== Weighted average number of shares in issue 60,421,226 63,150,968 62,389,503 Revenue return per share 9.15p 7.84p 14.84p Capital return per share 21.95p 27.23p 77.81p _______ ______ ______ Total return per share 31.10p 35.07p 92.65p ====== ====== ===== 5. Net asset value per share Net asset value per share is based on the net assets attributable to the ordinary shareholders of £357,700,000 (30th June 2006: £326,343,000 and 31st December 2006: £352,743,000) and on the 59,511,751 (30th June 2006: 62,175,371 and 31st December 2006: 61,071,045) shares in issue at the period end. 6. Accounts for the year ended 31st December 2006 The figures and financial information for the year ended the 31st December 2006 are extracted from the latest published accounts of the Company and do not constitute 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. JPMORGAN ASSET MANAGEMENT (UK) LIMITED This information is provided by RNS The company news service from the London Stock Exchange

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