Final Results

RNS Number : 1750T

JPMorgan Mid Cap Invest Trust PLC

23 September 2010

 



LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN MID CAP INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30^TH JUNE 2010

Chairman's Statement

Investment Performance

In the second half of 2009, conditions for equity investors improved considerably and stock markets everywhere continued the strong rally that started earlier in the year following the depths of the credit crisis. In the first half of 2010 stock markets generally have consolidated, with investors becoming more concerned about the speed and lack of strength of the global economic recovery. Earlier in 2010, our benchmark, the FTSE 250 (excluding investment trusts), regained the levels it reached prior to the Lehman Brothers' collapse in September 2008. Furthermore, over the year, the mid cap index outperformed the FTSE All Share.

This year I am pleased to report to you a significant positive return for investors. The total return on net assets was 23.7%. However, a more meaningful measure of investment performance is the figure of 25.1% which was the total return on net assets prior to the drawdown on revenue reserves to meet this year's proposed final dividend. By comparison, our benchmark returned 30.4%. As mentioned, the net asset return was reduced by the decision to maintain the final dividend, which will necessitate a £1.3m drawdown on the revenue reserve, thus reducing the total return by 1.4%. After taking account of the change in share price, the dividend for the year and the widening of the discount to NAV, the total return to shareholders was 18.5%.

I am disappointed with the relative return this year, although many other investment managers also experienced a very difficult year. In analysing the relative underperformance, the biggest factor working against us has been stock selection. Last year was challenging and it would be unreasonable to expect the changes introduced into the portfolio by the new team to bear fruit immediately. I am, however very encouraged by the recent improvement in relative performance and the fact that the Company has moved up the league table of our peer group of funds with a similar mandate.

The Board reviews thoroughly and regularly the appointment of the Manager and their investment strategy and process. We believe that JPMAM should remain as the Company's Investment Manager and that their ongoing appointment remains in the best interests of shareholders.

Revenue and Dividends

In my Half Year Report I highlighted the decrease in revenue received over the first half of the year. I have to report that the full year revenue figure was also significantly lower than last year, reflecting the dividend cuts made in the economic downturn. Net revenue for the year was £3,018,000 (2009: £4,758,000) and earnings per share, calculated on the average weekly number of shares in issue, were 11.94p (2009: 18.74p).

For the last five years the Board has indicated that it expects to increase dividends at least in line with inflation, as long as normal market conditions prevail. The last two years have been a highly volatile and atypical period and one where we would question whether normal market conditions prevailed. In the Half Year Report I stated that the Board recognised the importance of income to shareholders and that, in spite of the intense pressure on earnings and dividends, it proposed to maintain the interim dividend of 5.50p per share. However, I also indicated that the forecast revenue for the year continued to be weak and that, although the Company has substantial revenue reserves, the Board would review the level of the final dividend in light of its assessment of the trends of dividend payouts by the midcap sector.

The Board also recognises that one of the advantages of the structure of an investment trust is its ability during good times to build up revenue reserves to be drawn on to smooth dividend payments during periods of underlying revenue volatility. The Board has therefore decided, that despite the decline in income received this year, to propose to pay a maintained final dividend of 11.50p per share (2009: 11.50p) making a total of 17.00p (2009: 17.00p ordinary dividend plus 4.90p special dividend). The payment of this dividend will require a transfer of £1,259,000 from revenue reserves, which following its payment, will amount to £3,712,000. The dividend is payable on 1st November 2010 to shareholders on the register at the close of business on 1st October 2010.

The Board believes that this is a constructive use of the Company's revenue reserves. Clearly, if earnings fail to grow sufficiently to cover a maintained dividend in future years, this policy will be unsustainable. It is encouraging to note that JPMAM's latest estimates suggest that there will be steady dividend growth in the midcap sector in 2010 and 2011. Assuming a return to a more normalised pattern of mid cap dividend growth thereafter, the Board is hopeful that drawdowns from reserves should be significantly reduced. However, I would add a note of caution that forecasting long term earnings growth is fraught with difficulty and, although at this stage the Board would look to continue to draw on reserves to fund future dividends, it will review each payment in the light of the actual and forecast revenue at that time.

Gearing

The tactical use of gearing over the last year has added 1.1% to the overall return and the Board continues to believe in the benefits of gearing over the long term. The Company has a £10 million loan facility with ING Bank and a £9.5 million debenture, redeemable at par in 2016 or at the option of the Company after 1st December 2011, which give the Manager the ability to gear tactically. The Board of Directors sets the overall gearing guidelines and reviews these at each meeting; gearing changes between meetings may be undertaken after consultation with the Board. At the year end gearing was 104.5% and at the time of writing the Company is ungeared.

Discount Management and Treasury Shares

It is the present intention of the Board to continue its policy of buying back shares, whether for cancellation or into Treasury, to assist in reducing the volatility of the discount and enhance the net asset value per share. This policy will be reviewed regularly in the light of market conditions including the levels of discounts in the wider investment trust sector. Subsequent to the year end, the Board has reviewed its policy regarding the re-issue of Treasury shares at a discount. As a result, the Company will henceforth only re-issue shares from Treasury at a premium to NAV.

During the year under review, the Company repurchased into Treasury 225,000 shares, representing 0.9% of the issued share capital at the start of the year. Since 30th June 2010, the Company has not bought back any further shares. The Company will continue to buy shares into Treasury up to a maximum of 5.0% of issued share capital. Shares bought back in excess of this level will be cancelled.

Whilst the Company has not repurchased any shares for cancellation over the course of the year, the Directors continue to believe that this mechanism is of benefit to shareholders and therefore propose and recommend that powers to repurchase up to 14.99% of the Company's shares for cancellation be renewed for a further period.

Board of Directors

The Board has procedures in place to ensure that the Company complies fully with the Combined Code and the AIC Code on Corporate Governance.

In accordance with the Company's Articles of Association, the Director retiring by rotation and seeking re-election at this year's Annual General Meeting is Gordon McQueen. John Emly also retires on grounds of tenure (having served as a Director for fourteen years) and seeks re-election. The Nomination and Remuneration Committee has met to consider the attributes and contributions of the individuals concerned and, following this review, has no hesitation in recommending their re-election at the forthcoming Annual General Meeting.

Change of Auditors

During the year the Board undertook a competitive tender process to review the provision of audit services. Following this process it was agreed that PricewaterhouseCoopers ('PwC') should replace Ernst & Young LLP ('E&Y') on completion of this year's audit. As a result, the incumbent statutory auditor, E&Y will resign following the completion of this year's audit. A resolution to appoint PwC as auditors to the Company is included in the Notice of Meeting of the Annual General Meeting.

Annual General Meeting

This year's Annual General Meeting will be held on Friday 29th October 2010 at 12.00 noon at The Library, JPMorgan's Offices, 60 Victoria Embankment, London EC4Y 0JP. As in previous years, 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 JPMAM after the meeting. I look forward to welcoming as many of you as possible to this meeting.

If you have any detailed or technical questions, it would be helpful if you could raise these in advance of the meeting with the Company Secretary at Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ. Shareholders who are unable to attend the AGM are encouraged to use their proxy votes.

Prospects

The outlook is far from clear. Many mid cap companies were quick to react to the downturn, taking measures to protect their balance sheets and are thus in a strong position to benefit from any sustained upturn. However, the economic recovery faces strong headwinds, with governments and consumers around the world cutting their spending and thereby threatening economic growth. Despite this, there will be attractive investment opportunities and we share our Managers' confidence in their ability to pick stocks that can thrive in such an environment.

Andrew Barker

Chairman                                                                                                                     22nd September 2010

Investment Managers' Report

Performance & Market Background

The portfolio's net asset value underperformed its benchmark the FTSE 250 Index excluding Investment Trusts, over the year under review. The total return for the underlying portfolio, net of fees and expenses, was 25.1% over the 12 months, compared with the benchmark total return of 30.4%. The proposed level of dividend has required the utilisation of some of the Company's revenue reserves, which has negatively impacted the net asset value by a further 1.4%, resulting in a return on net assets of 23.7% for the year. The discount on the Company's shares widened over the year resulting in a total return to shareholders of 18.5%.

The three stocks that contributed the most to relative performance over the year were Chloride, Morgan Crucible and Investec. Chloride, a market leader in uninterruptible power supplies, doubled over the year as Emerson, a US competitor, successfully bid for the Company. Morgan Crucible, a manufacturer of specialist ceramics, carbon and composites, outperformed as the company grew both revenue and margin throughout the downturn and trading proved to be more resilient than in previous recessions. Investec, the South African bank with global operations, was promoted to the FTSE 100 during the year and was subsequently sold. Profitability improved as banking markets recovered and Investec's strong capital position means it is well placed to take advantage of opportunities within the industry.

The worst performing stocks relative to the benchmark were MicroFocus, Trinity Mirror and HMV. In aggregate, these three stocks detracted 1.7% from relative performance. MicroFocus produces software for extending the life of legacy computer applications. At the time of the CEO's sudden departure we were overweight in the stock. His resignation, so soon after the company had made two significant acquisitions, prompted us to sell the stock; the shares subsequently rallied. However, following the Company's year end, MicroFocus has underperformed as the Finance Director also resigned and doubts over future growth rates surfaced. Trinity Mirror, the owner of national and regional newspaper titles, fell during the final quarter of the year, despite improving advertising trends and a lower cost base. The stock was subsequently demoted from the FTSE 250 Index as the market focussed on the structural issues the company faced, especially in its regional newsprint business. HMV was also demoted from the 250 Index in June. Despite its strong market position, continued fears over the viability of a high street retailer selling music and games when consumers are increasingly buying these products online sent shares in HMV to new lows.

Chloride was not the only stock in the portfolio to be the subject of corporate activity. The portfolio benefited from a number of stocks receiving bid approaches. Stocks in the portfolio that have either been taken over or are currently in a bid situation include Arriva, Brit Insurance, BSS, Chloride, Dana Petroleum, Dimension Data, SSL and Tomkins. The characteristics that we favour in companies such as market leading positions, undervalued assets and strong management teams are often the attributes other corporates look for when analysing potential mergers and acquisitions.

The mid cap market continued to rally during the first half of the Company's financial year as it built on the gains of the latter half of the previous financial year. At the half year stage the benchmark total return was 27.7%, compared with the full year performance of 30.4%.

The stock market continued to recover from a March 2009 level that had priced in global depression and a failure of the banking system. As credit markets reopened and Government stimulus packages took effect, the economy began to recover. Many companies were able to protect their margins by cutting costs rapidly, and as their revenues began to stabilise, profitability improved. On average, company results came in ahead of analysts' expectations and improving economic data led to improving corporate confidence and a rebuilding of inventories.

By April, fears were mounting that the sheer scale of governments' debt might lead to one or more governments in the European Union defaulting on their commitments, and thus threaten the very existence of the single currency. The panic in the Greek government bond market soon spread to other countries such as Spain, Italy, Portugal and Ireland. It was against this backdrop of rising sovereign bond yields in the peripheral European countries that the new UK Coalition Government was formed. Witnessing the speed and severity of the market's reaction to the unfolding Greek crisis, the new Government made the reduction of its own deficit its top priority, from which the gilt market took comfort.

As the Company's financial year ended, the trend of improving economic data had begun to stall and the market once again became increasingly worried about the prospect of a jobless recovery and the implications of that on future economic expansion.

Portfolio

In our first full year as managers we made a number of changes to the portfolio. Eight of the stocks featured in this year's ten largest investments were not in the ten largest investments last year. The two stocks on both lists are Drax, the owner of electricity generating plant in Yorkshire, and Charter International the engineering company with two divisions, welding and air and gas handling. Drax currently yields over 7% and is an important strategic asset generating 7% of the UK's power. Charter has benefited from an increase in demand in its end markets, particularly within the welding division.

New additions to the ten largest investments include Pennon, ITV and Dana Petroleum. Pennon is a defensive stock, providing water and sewerage services to the South West of England. ITV has benefited from an increase in advertising spend and an improvement in viewing figures. Consumer facing companies understand the importance of maintaining brand awareness and many are now increasing their marketing budgets. Television is still an important medium for advertisers and provides an efficient way of reaching an audience of millions. Dana Petroleum is currently the subject of a hostile bid from the Korean National Oil Corporation. The company has a strong portfolio of producing assets and a pipeline of exploration targets.

Having been successfully geared throughout the last financial year, the uncertain economic outlook has led us to eliminate the Company's gearing, at least on a temporary basis.

Outlook

Equities are likely to remain volatile in the short term given the uncertainty of the economic outlook.

In October, the Government will provide more detail regarding its planned expenditure cuts. As the full impact of the fiscal contraction is felt, it is likely that the economic recovery will slow and unemployment rise. We would expect this to shake further the confidence of the already fragile consumer, with a knock-on effect to spending and saving patterns. Moreover, the UK consumer is also facing the imminent prospect of VAT rising, higher energy prices together with significant increases in the price of basic food items such as grains and meat. In the short term, it is unlikely that wage increases will be enough to offset these inflationary pressures.

However, despite these economic headwinds, some companies will continue to trade well and grow their businesses. Corporate sector balance sheets are, in general, much stronger now compared with their position at the beginning of the downturn. The process of cost cutting and carrying lower stock levels has allowed many companies to de-gear their balance sheets whilst a large number of quoted companies raised more capital in order to strengthen their financial positions. As companies have seen their revenue stabilise and in some cases grow, we have witnessed an increase in corporate activity with companies using their cash to acquire other companies. We expect to see more takeover activity in the year ahead.

Investors continue to be nervous about the sustainability of the recovery. Many financial institutions still need to be supported and governments across the developed world face tough decisions as they look to reduce their fiscal deficits. However, double dip recessions are rare and all but the worst of investors' fears would appear to be already discounted in share prices: the FTSE 250 index currently trades on a 12 month forward P/E ratio of approximately 11.9x, (a 15% discount to its 10 year average) and its prospective dividend yield of 3.2% compares favourably with the yield currently available on cash. We expect mid cap companies to continue to increase dividend payments to shareholders.

Although the macro economic environment is likely to remain difficult, volatile markets will present us with many opportunities. We view the year ahead with cautious optimism.

Jane Lennard

William Meadon                                                                               

Investment Managers                                                                                                  22nd September 2010

Principal Risks 

With the assistance of the Manager, the Board has drawn up a risk matrix which identifies the key risks to the Company. These key risks fall broadly under the following categories:

•Investment and Strategy: An inappropriate investment strategy, for example asset allocation or the level of gearing, may lead to under-performance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount. The Board manages these risks by diversification of investments through its investment restrictions and guidelines which are monitored and reported. JPMAM provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, liquidity reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend all Board meetings, and reviews data which shows statistical measures of the Company's risk profile. The Investment Managers employ the Company's gearing tactically, within a strategic range set by the Board. The Board holds a separate meeting devoted to strategy each year.

•Financial: The Company is exposed to market risk, liquidity risk and credit risk. The principal financial risk facing the Company is market risk arising from uncertainty about the future prices of the Company's investments. It represents the potential loss the Company might suffer through holding investments in the face of negative market movements. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by JPMAM. The Board monitors the implementation and results of the investment process with the Investment Managers.

•Accounting, Legal and Regulatory: In order to qualify as an investment trust, the Company must comply with Section 1158 of the Income and Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given under "Business of the Company" above. Should the Company breach Section 1158, it may lose investment trust status and as a consequence capital gains within the Company's portfolio would be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by JPMAM and the results reported to the Board each month. The Company must also comply with the provisions of the Companies Act 2006 and, as its shares are listed on the London Stock Exchange, the UKLA Listing Rules. A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. A breach of the UKLA Listing Rules may result in the Company's shares being suspended from listing which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, JPMAM, and its professional advisers to ensure compliance with the Companies Act 2006 and the UKLA Listing Rules.

•Corporate Governance and Shareholder Relations: Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance report.

•Operational: Disruption to, or failure of, JPMAM's accounting, dealing or payments systems or the custodian's records may prevent accurate reporting and monitoring of the Company's financial position. Details of how the Board monitors the services provided by JPMAM and its associates and the key elements designed to provide effective internal control are included within the Internal Control section of the Corporate Governance report.

Directors' Responsibilities in Respect of the Accounts

The Directors are responsible for preparing the annual report and the accounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare accounts for each financial year. Under that law the Directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent; and

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Directors' Remuneration Report and Statement of Corporate Governance that comply with that law and those regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The accounts are published on the www.jpmmidcap.co.uk website, which is maintained by the Company's Manager, J.P. Morgan Asset Management (UK) Limited ('JPMAM'). The maintenance and integrity of the website maintained by JPMAM is, so far as it relates to the Company, the responsibility of JPMAM.

Statement under the Disclosure & Transparency Rules 4.1.12

(a) the accounts, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

(b) this Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

Please note that up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can be found at www.jpmmidcap.co.uk.

For further information please contact:

Andrew Norman

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

020 7742 6000

Income Statement

for the year ended 30th June 2010

	2010			2009
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments held at fair value through   profit or loss	-	19,812	19,812	-	(52,973)	(52,973)
Income from investments	3,795	-	3,795	4,338	-	4,338
Other interest receivable and similar income	51	-	51	493	-	493
Gross return/(loss)	3,846	19,812	23,658	4,831	(52,973)	(48,142)
Management fee	(147)	(343)	(490)	(141)	(328)	(469)
VAT recoverable	-	-	-	766	819	1,585
Other administrative expenses	(325)	-	(325)	(339)	-	(339)
Net return/(loss) on ordinary activities before finance costs   and taxation	3,374	19,469	22,843	5,117	(52,482)	(47,365)
Finance costs	(354)	(825)	(1,179)	(357)	(832)	(1,189)
Net return/(loss) on ordinary activities before taxation	3,020	18,644	21,664	4,760	(53,314)	(48,554)
Taxation	(2)	-	(2)	(2)	-	(2)
Net return/(loss) on ordinary activities after taxation	3,018	18,644	21,662	4,758	(53,314)	(48,556)
Return/(loss) per share (note 3)	11.94p	73.73p	85.67p	18.74p	(209.97)p	(191.23)p

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies. The Total column represents all the information that is required to be disclosed in a Statement of Total Recognised Gains and Losses ('STRGL'). For this reason a STRGL has not been presented.

Reconciliation of Movements in Shareholders' Funds

for the year ended 30th June 2010

	Called up	Capital
	share	redemption	Capital	Revenue
	capital	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000
At 30th June 2008	6,533	3,467	132,365	8,547	150,912
Repurchase of shares into Treasury	-	-	(2,793)	-	(2,793)
Net (loss)/return on ordinary activities	-	-	(53,314)	4,758	(48,556)
Dividends appropriated in the year	-	-	-	(5,423)	(5,423)
At 30th June 2009	6,533	3,467	76,258	7,882	94,140
Repurchase of shares into Treasury	-	-	(856)	-	(856)
Net return on ordinary activities	-	-	18,644	3,018	21,662
Dividends appropriated in the year	-	-	-	(4,303)	(4,303)
At 30th June 2010	6,533	3,467	94,046	6,597	110,643

Balance Sheet

at 30th June 2010

	2010	2009
	£'000	£'000
Fixed assets
Equity investments held at fair value through profit or loss	115,605	100,519
Investment in liquidity fund held at fair value through profit or loss	1,200	4,500
Total investments	116,805	105,019
Current assets
Debtors	3,917	6,356
Cash and short term deposits	73	133
	3,990	6,489
Current liabilities
Creditors: amounts falling due within one year	(662)	(7,886)
Net current assets/(liabilities)	3,328	(1,397)
Total assets less current liabilities	120,133	103,622
Creditors: amounts falling due after more than one year	(9,490)	(9,482)
Total net assets	110,643	94,140
Capital and reserves
Called up share capital	6,533	6,533
Capital redemption reserve	3,467	3,467
Capital reserves	94,046	76,258
Revenue reserve	6,597	7,882
Shareholders' funds	110,643	94,140
Net asset value per share (note 4)	441.0p	371.9p

Cash Flow Statement

for the year ended 30th June 2010

	2010	2009
	£'000	£'000
Net cash inflow from operating activities	2,573	6,034
Returns on investments and servicing of finance
Interest paid	(1,171)	(1,188)
Net cash outflow from returns on investments and servicing of finance	(1,171)	(1,188)
Capital expenditure and financial investment
Purchases of investments	(152,975)	(99,846)
Sales of investments	157,417	106,023
Transaction costs	(733)	(782)
Other capital charges	(16)	(13)
Net cash inflow from capital expenditure and financial investment	3,693	5,382
Dividends paid	(4,303)	(5,423)
Net cash inflow before financing	792	4,805
Financing
Repurchase of shares into Treasury	(852)	(2,897)
Net repayment of short term loans	-	(2,000)
Net cash outflow from financing	(852)	(4,897)
Decrease in cash and cash equivalents	(60)	(92)

Notes to the Accounts

for the year ended 30th June 2010

1.  Accounting policies

     Basis of accounting

     The accounts are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued by the AIC in January 2009.

     All of the Company's operations are of a continuing nature.

     The accounts have been prepared on a going concern basis.

     The policies applied in these accounts are consistent with those applied in the preceding year. There has been an amendment to FRS 29 in respect of fair value disclosures and the details of this are given in note 21 to the accounts on page 42 of the Annual Report and Accounts.

2.  Dividends

     Dividends paid and proposed

	2010	2009
	£'000	£'000
2009 Final dividend of 11.5p (2008: 11.0p)	2,911	2,791
Interim dividend of 5.5p (2009: 5.5p)	1,392	1,392
2009 special dividend of 4.9p	-	1,240
Total dividends paid in the year	4,303	5,423
2010 Final dividend proposed of 11.5p (2009: 11.5p)	2,885	2,911

     The final dividend has been proposed in respect of the year ended 30th June 2010 and is subject to approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the accounts for the year ending 30th June 2011.

3.  Return/(loss) per share

     The revenue return per share is based on the earnings attributable to the ordinary shares of £3,018,000 (2009; £4,758,000) and on the weighted average number of shares in issue during the year of 25,286,774 (2009: 25,391,440).

     The capital return per share is based on the capital return attributable to the ordinary shares of £18,644,000 (2009: loss of £53,314,000) and on the weighted average number of shares in issue during the year of 25,286,774 (2009: 25,391,440).

     Total return per share is based on the total return attributable to the ordinary shares of £21,662,000 (2009: loss of £48,556,000) and on the weighted average number of shares in issue during the year of 25,286,774 (2009: 25,391,440).

4.  Net asset value per share

     Net asset value per share is based on total shareholders' funds attributable to ordinary shareholders of £110,643,000 (2009: £94,140,000) and on the 25,086,680 (2009: 25,311,680) shares in issue at the year end, excluding shares held in Treasury.

5. Status of announcement

2009 Financial Information

             The figures and financial information for 2009 are extracted from the Annual Report and Accounts for the year ended 30^th June 2009 and do not constitute the statutory accounts for that year.  The Annual Report and Accounts has been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 237(2) or section 237(3) of the Companies Act 1985.

2010 Financial Information

             The figures and financial information for 2010 are extracted from the Annual Report and Accounts for the year ended 30^th June 2010 and do not constitute the statutory accounts for that year.  The Annual Report and  Accounts includes the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Registrar of Companies in due course.

Annual Report and Accounts

The Annual Report and Accounts will be posted to shareholders on or around 28th September 2010 and will shortly be available on the Company's website (www.jpmmidcap.co.uk) or in hard copy format from the Company's Registered Office, Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

 

END

 

 

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