Final Results
Merchants Trust PLC
21 March 2000
ANNOUNCEMENT OF PRELIMINARY RESULTS
For the year ended 31st January 2000
Highlights
* Net dividends totalling 16.0p per share, an underlying increase of
6.7%, adjusting for the FID enhancement paid in 1998/9.
* Earnings per share of 17.93p per share, up 17.9%. This includes 1.31p
per share from special dividends. The underlying earnings have also
been increased due to the timing of dividend receipts.
* Ordinary shares yield 4.80% at 3.33p, compared with 1.96% on the FTSE
100 at 20th March 2000.
* Net asset value 405.1p per share at 17th March 2000, up 6.2% year to
date.
* £29m raised through 5.875% Secured Bonds 2029 on 20th December 1999.
Ordinary Dividend
The Board is recommending a final dividend of 4.05p per share, payable on 18th
May 2000 to holders of record at the close of business on 14th April 2000.
This gives a total of 16.00p for the year ended 31st January 2000, an
underlying increase of 6.7% when compared with the total distribution of
15.00p, excluding the enhancement relating to the FID, paid during the
previous year.
Net Asset Value
The net asset value per Ordinary Share at 31st January 2000 was 381.4p
compared with 415.2p at 31st January 1999, a decrease of 8.1%. This compares
with an increase of 1.8% recorded by the FTSE 350 Higher Yield Index. The
shortfall against the Higher Yield Index represents the relative
out-performance of smaller companies within this universe. Over the last
financial year the FTSE 100 Index rose by 6.3%.
Annual General Meeting
The Annual General Meeting of the Company will be held at 20 Fenchurch Street,
London, EC3P 3DB on Monday 8th May 2000 at 12.30pm.
Share Buy Backs
The Board has decided to recommend to shareholders that the Company take
powers to buy back its Ordinary Shares. Full details will be sent to
shareholders in the forthcoming Annual Report and Accounts.
By Order of the Board
10 Fenchurch Street N J Schrager von Altishofen
London EC3M 3LB Joint Company Secretary
Unaudited preliminary results for the year ended 31st January 2000 were
approved for immediate release as undernoted:
RESULTS
STATEMENT OF TOTAL RETURN *
for the year ended 31st January 2000
2000
---------------------------------------
(£) (£) (£)
Revenue Capital Total
Net losses on investments - (30,408,125) 30,408,125)
Exchange rate differences - (743) (743)
Income from fixed asset investments 22,355,982 - 22,355,982
Other income 234,070 - 234,070
Investment management fee (779,436) (1,447,525) (2,226,961)
Other expenses (551,804) - (551,804)
---------------------------------------
Net return before finance costs
and taxation 21,258,812 (31,856,393) (10,597,581)
Finance costs of borrowings (2,650,058) (4,877,533) (7,527,591)
---------------------------------------
Return on ordinary activities
before taxation 18,608,754 (36,733,926) (18,125,172)
Taxation (221,150) 220,411 (739)
---------------------------------------
Return on ordinary activities after
taxation for the financial year 18,387,604 (36,513,515) (18,125,911)
Dividends on preference stock (42,997) - (42,997)
---------------------------------------
Return attributable to Ordinary
Shareholders 18,344,607 (36,513,515) (18,168,908)
Dividends on Ordinary Shares
(see below) (16,372,630) - (16,372,630)
---------------------------------------
Transfer to (from) reserves 1,971,977 (36,513,515) (34,541,538)
---------------------------------------
Return per Ordinary Share 17.93p (35.68p) (17.75p)
* The revenue column of this statement is the profit and loss account of the
Company.
Dividends on Ordinary Shares: 2000 (£)
First Interim paid 3.95p 4,041,993
Second Interim paid 3.95p 4,041,993
Third Interim paid 4.05p 4,144,322
Final proposed payable 18th May 2000 4.05p 4,144,322
----------------------
16.00p 16,372,630
======================
NET ASSET STATEMENT as at 31st January 2000 2000 (£)
Fixed Asset Investments 508,246,237
Net Current Liabilities (4,516,536)
-------------
503,729,701
Less: Creditors - amounts falling due after
more than one year (112,234,418)
Preference stock at par (1,178,000)
-------------
Net assets attributable to Ordinary Shareholders 390,317,283
=============
Net asset value per Ordinary Share 381.4p
The net asset value is based on 102,328,936 Ordinary Shares in issue.
RESULTS
STATEMENT OF TOTAL RETURN *
for the year ended 31st January 1999
1999
---------------------------------------
(£) (£) (£)
Revenue Capital Total
Net gains on investments - 10,158,327 10,158,327
Exchange rate differences - 243 243
Income from fixed asset investments 19,632,710 - 19,632,710
Other income 486,332 - 486,332
Investment management fee (763,048) (1,417,089) (2,180,137)
Other expenses (426,891) - (426,891)
---------------------------------------
Net return before finance costs
and taxation 18,929,103 8,741,481 27,670,584
Finance costs of borrowings (2,385,058) (4,428,201) (6,813,259)
---------------------------------------
Return on ordinary activities
before taxation 16,544,045 4,313,280 20,857,325
Taxation (934,134) 605,508 (328,626)
---------------------------------------
Return on ordinary activities after
taxation for the financial year 15,609,911 4,918,788 20,528,699
Dividends on preference stock (42,997) - (42,997)
---------------------------------------
Return attributable to Ordinary
Shareholders 15,566,914 4,918,788 20,485,702
Dividends on Ordinary Shares
(see below) (15,953,081) - (15,953,081)
---------------------------------------
Transfer (from) to reserves (386,167) 4,918,788 4,532,621
---------------------------------------
Return per Ordinary Share 15.21p 4.81p 20.02p
* The revenue column of this statement is the profit and loss account of the
Company.
Dividends on Ordinary Shares: 1999 (£)
First Interim paid 21st August 1998 3.75p 3,837,335
Second Interim paid 18th November 1998 3.75p 3,837,335
Third Interim paid 22nd February 1999
Ordinary Dividend 1.36p 1,391,674
Foreign Income Dividend 2.98p 3,049,402
Final paid 19th May 1999 3.75p 3,837,335
------------------------
15.59p 15,953,081
========================
NET ASSET STATEMENT as at 31st January 1999 1999 (£)
Fixed Asset Investments 508,503,479
Net Current Assets 685,649
------------
509,189,128
Less: Creditors - amounts falling due after
more than one year (83,152,307)
Preference stock at par (1,178,000)
------------
Net assets attributable to Ordinary Shareholders 424,858,821
============
Net asset value per Ordinary Share 415.2p
The net asset value is based on 102,328,936 Ordinary Shares in issue.
CASH FLOW STATEMENT
For the years ended 31st January 2000 and 1999
2000 (£) 2000 (£) 1999 (£)
Net cash inflow from operating
activities 20,942,289 16,382,464
Servicing of Finance
Interest paid (7,340,354)
(6,625,303)
Preference dividends paid (42,997) (21,498)
-------------
Net cash outflow on servicing of
finance (7,383,351) (6,646,801)
Taxation
UK income tax repaid 47,545 335,116
Advance corporation recovered (paid) 142,667 (241,282)
-------------
Net tax repaid 190,212 93,834
Investing Activities
Payments to acquire fixed asset
investments (444,356,135) (243,493,665)
Proceeds on disposal of fixed asset
investments 412,048,368 235,532,762
-------------
Net cash outflow from financial
investment (32,307,767) (7,960,903)
Equity dividends paid (16,362,397) (15,093,518)
-------------------------
Net cash outflow before financing (34,921,014) (13,224,924)
Financing
(Decrease) increase in short
term loan (497,256) 497,256
Issue of Secured Bonds 28,942,800 -
Increase in Fintrust loan - 12,000,000
Premium received thereon - 5,286,564
-------------
Net cash inflow from financing 28,445,544 17,783,820
------------------------
(Decrease) increase in cash (6,475,470) 4,558,896
------------------------
The statutory accounts for the year ended 31st January 1999 received an
unqualified audit report and have been delivered to the Registrar of
Companies.
The Company is adopting early compliance with Financial Reporting Standard 16
'Current Taxation' and is accounting for dividends from UK equity investments
net of the associated tax credit. Comparative figures have been restated
accordingly.
For further information, please contact:
Dresdner RCM Global Investors (UK) Ltd
Simon White or Nigel Lanning
Tel: 020 7475 2700
or
Lansons Communications
Amy Fisher
Tel: 020 7490 8828
Latest directors dealings
- 1 hour ago Alphawave IP Group
- 1 hour ago Judges Scientific
- 2 hours ago Alphawave IP Group
- 2 hours ago Taylor Wimpey
- 2 hours ago FDM Group (Holdings)