Final Results

Manchester & London Inv Tst PLC 08 October 2002 Manchester & London Investment Trust plc ANNOUNCEMENT OF THE AUDITED GROUP RESULTS For the year ended 31st July 2002 Attached pages 1 - 5 • Total dividend for the year up 240% to 8.5p per share • Net asset value down 4% compared to FTSE All Share Index down 23% • Cash holdings currently stand at 26.6% of assets Enquiries : Manchester & London Investment Trust plc Brian S Sheppard Tel : 0161-200-6223 Brokers : CFA Securities Limited Mark Sheppard Tel : 0161-200-6201 Manchester & London Investment Trust plc 3rd October 2002 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 1 of 5 The Directors Announce the Audited Figures For the year ended 31st July 2002 Consolidated Statement of Total Return (incorporating the revenue account) 2002 2001 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Losses on investments - (1,295) (1,295) - (4,299) (4,299) Negative goodwill realised - - - - 339 339 Income (note 1) 1,018 370 1,388 801 - 801 Investment management fee (55) (102) (157) (61) (113) (174) Other expenses (174) - (174) (201) - (201) Net return before finance costs 789 (1,027) (238) 539 (4,073) (3,534) Interest payable and similar charges - - - (10) (19) (29) Return on ordinary activities before taxation 789 (1,027) (238) 529 (4,092) (3,563) Taxation (11) 11 - - - - Return on ordinary activities after taxation 778 (1,016) (238) 529 (4,092) (3,563) Dividends in respect of non-equity shares (57) - (57) (57) - (57) Return attributable to equity shareholders 721 (1,016) (295) 472 (4,092) (3,620) Dividends in respect of equity shares (638) - (638) (187) - (187) Transfer to (from) reserves 83 (1,016) (933) 285 (4,092) (3,807) Return per ordinary share (pence) Basic 9.61 (13.54) (3.93) 6.29 (54.56) (48.27) Fully diluted 7.43 (9.70) (2.27) 5.05 (39.05) (34.00) The revenue column of this statement is the consolidated profit and loss account of the Group. All revenue and capital items in the above statement derive from continuing operations. Non-equity dividends Dividends per preference share accrue at the rate of 7.6% p.a. Equity dividends Interim dividend paid per each 25p ordinary share 2.5p (2001 - 0.6p) Increased final dividend proposed per each 25p ordinary share 6.0p (2001 - 1.9p) The ordinary dividend is payable on 27th November 2002 to shareholders on the Register at the close of business on 11th October 2002. Manchester & London Investment Trust plc 3rd October 2002 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 2 of 5 Consolidated Balance Sheet At 31st July 2002 2002 2001 £'000 £'000 £'000 £'000 Fixed Assets Investments 28,378 19,261 Current Assets Debtors 714 865 Cash and short term deposits 408 9,931 1,122 10,796 Creditors Amounts falling due within one year (908) (532) Net Current Assets 214 10,264 Total assets less current liabilities 28,592 29,525 Creditors Amounts falling due after more than one year (5,413) (5,413) Net Assets 23,179 24,112 Capital and Reserves Called-up Share Capital 2,619 2,619 Other reserves Capital reserve - realised 16,570 16,313 Capital reserve - unrealised 1,555 2,828 Goodwill reserve (79) (79) Revenue reserve 2,514 2,431 Total shareholders' funds 23,179 24,112 Equity interests - Ordinary shares 22,435 23,368 Non-equity interests - Preference shares 744 744 23,179 24,112 Net Asset Value per share Ordinary shares - basic 299.1p 311.6p Ordinary shares - fully diluted 221.2p 230.1p Manchester & London Investment Trust plc 3rd October 2002 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 3 of 5 Consolidated Cashflow Statement For the year ended 31st July 2002 2002 2001 £'000 £'000 £'000 £'000 Operating activities Net dividends and interest received from investments 641 878 Other income 282 100 Investment management fees paid (152) (173) Other cash payments (190) 56 Net cash inflow from operating activities 581 861 Servicing of finance Interest paid - (30) Preference dividend paid (57) (57) Net cash outflow from servicing of finance (57) (87) Financial investment Purchase of investments (15,937) (9,401) Sale of investments 6,220 23,772 Net cash (outflow) inflow from financial investment (9,717) 14,371 Acquisitions and disposals Acquisition of subsidiary undertaking Costs of acquisition - (258) Net overdraft acquired with subsidiary - (481) Repayment of loan from holding company - (5,830) Net cash outflow from acquisitions and disposals - (6,569) Equity dividends paid (330) (157) (Decrease) increase in cash (9,523) 8,419 Reconciliation of net cash flow to movement in net funds (Decrease) increase in cash in year (9,523) 8,419 Net funds at beginning of year 9,931 1,512 Net funds at end of year 408 9,931 Manchester & London Investment Trust plc 3rd October 2002 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 4 of 5 Note 1 2002 2001 £'000 £'000 Income Income from investments UK dividends 693 611 Government securities 64 - Interest on loan notes - 74 757 685 Other income Deposit interest 261 93 Other income - 23 261 116 Total income 1,018 801 The above financial information does not constitute statutory financial statements as defined in Section 240 of the Companies Act 1985. The comparative financial information is based on the statutory financial statements for the year ended 31st July 2001. Those financial statements, upon which the auditor issued an unqualified opinion, have been delivered to the Registrar of Companies. Statutory financial statements for the year ended 31st July 2002 will be delivered to the Registrar. In addition, during the year ended 31st July 2002, the trust received special dividends, representing a return of capital to shareholders, amounting to £370,000. These dividends related to capital re-organisations by AEA Technology and Singer & Friedlander Group both following strategic disposals of business segments. Manchester & London Investment Trust plc 3rd October 2002 ANNOUNCEMENT OF THE AUDITED GROUP RESULTS Page 5 of 5 CHAIRMAN'S STATEMENT The three year old bear market has continued throughout the first nine months of the year and left its mark on our Portfolio which has registered a fall of 4.7% during the second half of our financial year which ended on the 31st July. Nevertheless, this compares favourably with the FTSE All Share Index which shed 445 points over the same period, a fall of 17.8%. During the year as a whole, the net asset value fell 4.0% compared to a fall in the FTSE All Share Index of 23.0%. This relatively good performance was achieved principally by holding a substantial percentage of our assets in cash during most of the Company's financial year. Our somewhat muted opinion expressed in the Interim Statement, to the effect that the prospects were improving, has been proved to be mistaken; since May the market has been weak, reflecting continuing concern for all the reasons set out in the Interim Statement, namely, US accounting scandals, insurance deficits, the adverse effect of FRS 17 on corporate pension funds, profit warnings, and prospects of yet higher levels of taxation, to which have been recently added the very real fear of deflation which could push the US and UK economies into recession. The Iraqi factor is not the main reason for the recent deterioration in the severest bear market since 1973/4, although in the unlikely event of a satisfactory outcome to that particular problem, the market would gain some relief. The recent deterioration in sentiment reflects fears that the consumer boom in both the US and the UK will eventually fizzle out, thus removing the one remaining prop to both economies. Against this background our current policy is to hold cash (currently 26.6% of our Portfolio) with the balance principally invested in shares offering an attractive yield which will hopefully remain relatively stable. With interest rates unlikely to rise in the foreseeable future, sound income stocks are likely to become increasingly attractive to investors and are less vulnerable to the forced selling now being seen in the market. The increased level of investment income resulting from this policy will be substantially distributed to shareholders by way of a Final Dividend of 6.0p which, together with the Interim Dividend of 2.5p makes a total of 8.5p for the year, absorbing 88.5% of our distributable income. The economic outlook remains uncertain to say the least. We do not believe that this is a 'normal' post Second World War bear market and do not share the optimism expressed by some pundits who continue to believe that there will be an imminent return to rapid growth. Inflation is (for the foreseeable future at least) a phenomenon which has been replaced by the spectre of deflation, with its sinister implications for economies which are still buoyed up by high levels of debt financed consumer spending. Fierce price competition from Far Eastern economies in particular is eroding the corporate pricing power of Western commerce which in turn, is putting intense pressure on profit margins. In the meantime, there appears to be no immediate prospect of any improvement in the outlook. Against this background, we will continue to search for investment opportunities with defensive qualities keeping an ever watchful eye on our cash resources. The Annual General Meeting is to be held in the Goldstone Room, The Museum of Science and Industry, Liverpool Road, Castlefield, Manchester M3 4FP, at 12.45pm on Thursday 21st November 2002, after which the results of the draw for Wimbledon tickets will be announced. On page 37 there are clear instructions on how to locate the venue which offers free car-parking for shareholders attending the Meeting with their copy of the Report and Accounts. P. H. A. Stanley FCA Chairman 3rd October 2002 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Manchester & London Investment Trust (MNL)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today