Final Results

JPMorgan Flem Russian Secs PLC 26 January 2004 JPMORGAN FLEMING RUSSIAN SECURITIES plc Stock Exchange Announcement The Board of JPMorgan Fleming Russian Securities plc is pleased to announce the Company's results for the period ended 31st October 2003. Commenting on the results the Chairman has made the following statement: Chairman's Statement The Year Under Review In my first annual statement as Chairman, I am delighted to report that during the period from launch of the Fund to 31st October 2003, the Company produced a return on net assets of +55.5%. For purposes of comparison the Company utilises a benchmark index. During the same period, the benchmark, the CSFB Russian ROS Index, increased by 46.5% (in sterling terms). During the period under review, the Company's ordinary share price increased by 50.8%, from 91.5p on 20th December 2002 (the Company's first day of trading) to 138.0p on 31st October 2003. The Company's discount widened from 9.3% to 12.0%, reflecting the market's uncertainty towards the end of the period regarding the outcome of the 'Yukos' situation. On behalf of the Board, I should like to thank those shareholders who rolled their investment from the predecessor company, and also shareholders who joined the Company at launch or since, for their support of the Company. We shall endeavour to ensure that the promising performance during this first period of review, will continue over the longer-term. Revenue and Dividends Revenue after taxation for the year amounted to £568,000 and earnings per ordinary share were 0.97p. Upon launch of the Company, it appeared that income from investments, after expenses, was expected not to be substantial. However, during the period under review income has exceeded predictions, because a number of Russian companies unexpectedly paid dividends. To satisfy the requirements of the Company's status as an investment trust, the Directors are, therefore, pleased to recommend that a dividend of 0.90p be paid on 22nd March 2004 to shareholders on the register at the close of business on 27th February 2004. The evolution of dividend paying habits by Russian companies is still unclear, and this year's dividend from the Company should not therefore be viewed as initiating a trend. Share Capital During the period under review, the Company repurchased a total of 2,900,000 shares. These repurchases have resulted in an increase in net asset value per share of 0.76p. Loan Facility In April 2003, the Company entered into an agreement with ING Bank to establish a US$15 million loan facility, to be used in accordance with the Company's investment objectives. The investment managers have actively managed the facility on a tactical basis, and will continue to do so. FTSE Indices I am pleased to report that, from 22nd December 2003, the Company was admitted to the FTSE All Share and FTSE Small Cap Indices. Outlook The controversy and uncertainty surrounding the 'Yukos' case has clearly raised the equity risk premium and reduced the potential upside of the Russian equity market in the shorter term. The most important matter for us is how the government will structure its relationship with the business sector in the future and what conclusions both sides will draw from this conflict and its outcome. Resolving the current stand-off and continuing to improve the climate for business is expected to be in the interest of the authorities, and, if so, it will be very positive for the Russian economy and equity prices. Results from elections held for the Lower House of Parliament (Duma) on 7th December 2003 showed an unconditional victory for the pro-Kremlin United Russia party and its partners, which now has a majority. This will enable Russia to have a Government supported by a parliamentary majority for the first time. The major losers in these elections appear to be the Communists, who have now become a more marginal player in politics, and the liberal parties who lost their presence in the Duma. We do not see the latter as a major setback as the liberals were not the locomotive for the reform programme seen in the last 4 years. Whilst the Russian equity market is likely in the shorter-term to be characterised by volatility caused by political uncertainty, the Board shares the Investment Managers' optimism regarding the Company's prospects. The Board is confident that the Investment Manager's strategy of selecting companies for the portfolio which have higher than average returns on equity and growing earnings leaves the Company well placed to take advantage of opportunities in the Russian market. Annual General Meeting The Company's first Annual General Meeting will be held on Tuesday 16th March 2004 at 2.00 pm, at 10 Aldermanbury, London EC2V 7RF. In addition to the formal part of the meeting, there will be a presentation from the Investment Managers who will answer questions on the portfolio and performance. There will also be an opportunity to meet the Board, the Investment Managers and representatives of JPMorgan Fleming. I look forward to seeing as many of you as possible at this meeting. Pamela Idelson Smith Chairman 26th January 2004 JPMorgan Fleming Russian Securities plc Unaudited figures for the period from incorporation to 31st October 2003 Statement of Total Return (Unaudited) Period ended 31st October 2003 Revenue Capital Total £'000 £'000 £'000 Realised gains on investments - 8,990 8,990 Change in unrealised appreciation - 24,642 24,642 Currency gains on cash and short-term deposits - 513 513 Other capital charges - (4) (4) Income from investments 2,473 - 2,473 Other income 20 - 20 _______ ________ _______ Gross return 2,493 34,141 36,634 Management fee (997) - (997) Other administrative expenses (355) - (355) Interest payable (166) - (166) Provision against income accrual (72) - (72) _______ _______ _______ Return before taxation 903 34,141 35,044 Taxation (335) - (335) _______ _______ _______ Return to ordinary shareholders 568 34,141 34,709 Dividends on ordinary shares Dividends payable (514) - (514) _______ _______ _______ Transfer to reserve 54 34,141 34,195 Revenue return per ordinary share 0.97p 58.30p 59.27p JPMorgan Fleming Russian Securities plc Unaudited figures for the period from incorporation to 31st October 2003 BALANCE SHEET 31st October 2003 £'000 Investments at valuation 99,438 Net current liabilities (9,599) Provisions for liabilities and charges (119) _______ Total net assets 89,720 ===== Net asset value per ordinary share 156.9p CASH FLOW STATEMENT 2003 £'000 Net cash outflow from operating activities (984) Net cash outflow from returns on investments and servicing of finance (142) Net cash outflow from capital expenditure and financial investment (64,915) Net cash inflow from financing 65,940 _______ Decrease in cash for the year (101) ===== The above financial information does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. J.P. MORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED 26th January 2004 This information is provided by RNS The company news service from the London Stock Exchange

Companies

JPMorgan Emerging Europe, Middle East & Africa Securities (JEMA)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today