Interim Results

Merchants Trust PLC 12 September 2000 THE MERCHANTS TRUST PLC Announcement of Unaudited Interim Results For the six months ended 31st July 2000 Highlights * Total Return of 15.2% in first six months at 57.82pps. * NAV per share up 13.0% to 431.1p since 31st January 2000. * Dividends per share up 3.8% at 8.20p * Prospective net yield of 4.3% at 385p per share. * All proceeds from December 1999 bond issue now invested in UK equity market. Interim Results Net Asset Value The net asset value per Ordinary Share was 431.1p at 31st July 2000, an increase of 13.0% when compared with the equivalent figure at the end of the last financial year. This improvement compares favourably with the 1.5% growth recorded by the FTSE 100 Index. The FTSE 350 Higher Yield Index rose by 11.8% over the same period. Since early March 2000, there has been a marked out-performance by 'old economy' shares. The Trust has taken advantage of these conditions, helped by the full investment of the proceeds from last December's Bond issue. Earnings Per Share The Board announced in the last Annual Report in March 2000 that the Trust would pursue a widened investment policy, such that the portfolio's yield objective would accommodate a broader spread of companies. In the first six months of the current financial year earnings per share have fallen by 28.1% to 7.79p per share compared with the same period last year. If last year's special dividend receipts of 1.31pps are excluded, the underlying fall is 18.2%. This reflects the investment policy outlined above, together with the exceptionally high incidence of dividend receipts in the first half of 1999/2000. Interim Dividend The Board is recommending a second quarterly dividend of 4.10p net per share, payable on 10th November 2000 to shareholders on the register at the close of business on 6th October 2000. The total for the first half of the current financial year is 8.20p net, representing an increase of 3.8% over the same period last year. The Board has forecast a total dividend of not less than 16.40p net per Ordinary Share for the year ended 31st January 2001, an increase of 2.5% on the total dividend of 16.00p in respect of the year ended 31st January 2000. Share Buy Backs The Trust took powers at the last Annual General Meeting to buy back its Ordinary Shares. In August 2000 the Trust purchased 50,000 of its Ordinary Shares and the Directors will continue to use this authority when appropriate and in the interests of shareholders to do so. Outlook On 8th September 2000 the NAV per share stood at 435.51p. In the UK, interest rates appear to be at or near their peak for the current cycle and, by reference to a number of benchmarks, the equity market is good value by international standards. On this basis the outlook is encouraging. Board Changes On 8th May 2000 Mr Colin Black retired as Chairman and from the Board and Mr Hugh Stevenson took over as Chairman on that date. By Order of the Board 10 Fenchurch Street N J Schrager von Altishofen London EC3M 3LB Company Secretary For further information, please contact: Dresdner RCM Global Investors Simon White or Nigel Lanning Tel: 020 7475 2700 or Lansons Communications Amy Fisher Tel: 020 7490 8828 Summary of Unaudited Results Statement of Total Return For the six months ended 31st July 2000 2000 ----------------------------------------- (£'000s) (£'000s) (£'000s) Revenue Capital Total - Realised - 20,699 20,699 - Unrealised - 34,090 34,090 ----------------------------------------- Net gains on investments - 54,789 54,789 Income from fixed asset investments 10,325 - 10,325 Other income 219 - 219 Investment management fee (401) (745) (1,146) Other expenses (351) - (351) ----------------------------------------- Net return before finance costs and taxation 9,792 54,044 63,836 Finance costs of borrowings (1,640) (3,006) (4,646) ----------------------------------------- Return before taxation 8,152 51,038 59,190 Taxation UK corporation tax (159) 159 - ----------------------------------------- Return after taxation 7,993 51,197 59,190 Dividends on Preference Stock (22) - (22) ----------------------------------------- Return attributable to Ordinary Shareholders 7,971 51,197 59,168 Dividends on Ordinary Shares (see below) (8,390) - (8,390) ----------------------------------------- Transfer (from) to Reserves (419) 51,197 50,778 ----------------------------------------- Return per Ordinary Share 7.79p 50.03p 57.82p ----------------------------------------- The revenue column of this statement is the profit and loss of the Company. Dividends on Ordinary Shares: 2000 (£'000s) First Interim 4.10p 4,195 Second Interim 4.10p 4,195 ----- ----- 8.20p 8,390 ----- ----- NET ASSET STATEMENT at 31st July 2000 2000 (£'000s) Fixed asset investments 552,004 Net current assets 2,373 --------- 554,377 Less: Creditors - amounts falling due after more than one year (112,104) Preference stock at par (1,178) --------- Net assets attributable to Ordinary Shareholders 441,095 --------- Net asset value per Ordinary Share 431.1p The net asset value is based on 102,328,936 Ordinary Shares in issue. Summary of Unaudited Results Statement of Total Return For the six months ended 31st July 1999 1999 ----------------------------------------- (£'000s) (£'000s) (£'000s) Revenue Capital Total - Realised - 25,635 25,635 - Unrealised - 7,856 7,856 ----------------------------------------- Net gains on investments - 33,491 33,491 Income from fixed asset investments 12,913** - 12,913** Other income 129 - 129 Investment management fee (406) (753) (1,159) Other expenses (174) - (174) ----------------------------------------- Net return before finance costs and taxation 12,462 32,738 45,200 Finance costs of borrowings (1,286) (2,367) (3,653) ----------------------------------------- Return before taxation 11,176 30,371 41,547 Taxation UK corporation tax and tax credits (72)** 72 -** ----------------------------------------- Return after taxation 11,104 30,443 41,547 Dividends on Preference Stock (22) - (22) ----------------------------------------- Return attributable to Ordinary Shareholders 11,082 30,443 41,525 Dividends on Ordinary Shares (see below) (8,084) - (8,084) ----------------------------------------- Transfer to Reserves 2,998 30,443 33,441 ----------------------------------------- Return per Ordinary Share 10.83p 29.75p 40.58p ----------------------------------------- The revenue column of this statement is the profit and loss of the Company. Dividends on Ordinary Shares: 1999 (£'000s) First Interim 3.95p 4,042 Second Interim 3.95p 4,042 ----- ----- 7.90p 8,084 ----- ----- NET ASSET STATEMENT at 31st July 1999 1999 (£'000s) Fixed asset investments 550,175 Net current liabilities (7,550) -------- 542,625 Less: Creditors - amounts falling due after more than one year (83,147) Preference stock at par (1,178) -------- Net assets attributable to Ordinary Shareholders 458,300 -------- Net asset value per Ordinary Share 447.9p The net asset value is based on 102,328,936 Ordinary Shares in issue. ** Restated in accordance with Financial Reporting Standard 16 'Current Taxation'. Statement of Total Return * for the year ended 31st January 2000 2000 ----------------------------------------- (£'000s) (£'000s) (£'000s) Revenue Capital Total - Realised - 8,314 8,314 - Unrealised - (38,723) (38,723) ----------------------------------------- Net losses on investments - (30,409) (30,409) Income from fixed asset investments 22,356 - 22,356 Other income 234 - 234 Investment management fee (780) (1,448) (2,228) Other expenses (552) - (552) ----------------------------------------- Net return before finance costs and taxation 21,258 (31,857) (10,599) Finance costs of borrowings (2,650) (4,877) (7,527) ----------------------------------------- Return on ordinary activities before taxation 18,608 (36,734) (18,126) Taxation (221) 220 (1) ----------------------------------------- Return on ordinary activities after taxation for the financial year 18,387 (36,514) (18,127) Dividends on preference stock (43) - (43) ----------------------------------------- Return attributable to Ordinary Shareholders 18,344 (36,514) (18,170) Dividends on Ordinary Shares (see below) (16,372) - (16,372) ----------------------------------------- Transfer to (from) reserves 1,972 (36,514) (34,542) ----------------------------------------- Return per Ordinary Share 17.93p (35.68p) (17.75p) * The revenue column of this statement is the profit and loss of the Company. Dividends on Ordinary Shares: 2000 (£'000s) First Interim paid 3.95p 4,042 Second Interim paid 3.95p 4,042 Third Interim paid 4.05p 4,144 Final proposed (paid 18th May 2000) 4.05p 4,144 ------ ------ 16.00p 16,372 ------ ------ NET ASSET STATEMENT as at 31st January 2000 2000 (£'000s) Fixed asset investments 508,246 Net current liabilities (4,517) --------- 503,729 Less: Creditors - amounts falling due after more than one year (112,234) Preference stock at par (1,178) --------- Net assets attributable to Ordinary Shareholders 390,317 --------- Net asset value per Ordinary Share 381.4p The net asset value is based on 102,328,936 Ordinary Shares in issue. This interim statement has been neither audited nor reviewed by the Company's auditors. The interim statement has been prepared using the same accounting policies as those adopted in the annual accounts for the year ended 31st January 2000. Expenses and finance costs have been allocated to capital and revenue on the basis of 65%/35% respectively. The Statement of Total Return for the year to 31st January 2000 has been extracted from the published accounts of the Company at that date which have been delivered to the Registrar of Companies. The Auditors' opinion on those accounts was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. The Return per Ordinary Share is based on revenue or capital return to Ordinary Shareholders, as appropriate, and on 102,328,936 Ordinary Shares, being those in issue throughout the period. The Net Asset Value has been calculated on the basis of a closing price for Smith and Nephew on 31st July of 253p. The directors believe that this is a more accurate reflection of the mid-market value of Smith and Nephew on the 31st July, than a 'rogue' price of 386p, which was recorded as the official closing price. As announced on 3rd August 2000, the latter price would have produced an NAV of 435.65p per Ordinary Share rather than 431.31p per share. The Interim Report will be sent to Shareholders shortly and made available to the public at the Registered Office of the Company, 10 Fenchurch Street, London, EC3M 3LB. Cash Flow Statement Six Months Six Months Year to to July to July January 2000 1999 2000 ------------------------------------------ (£'000s) (£'000s) (£'000s) Net cash inflow from operating activities 8,579 11,979 20,942 Servicing of Finance ------------------------------------------ Interest paid (4,387) (3,506) (7,340) Dividends paid on preference stock (21) (21) (43) ------------------------------------------ Net cash outflow on servicing of finance (4,408) (3,527) (7,383) Taxation ------------------------------------------ UK income tax repaid 426 514 48 Advance corporation tax recovered - - 142 ------------------------------------------ Net tax repaid 426 514 190 Financial Investment Purchase of fixed asset ------------------------------------------ investments (155,076) (180,603) (444,356) Sale of fixed asset investments 171,508 178,139 412,048 ------------------------------------------ Net cash inflow (outflow) from financial activities 16,432 (2,464) (32,308) Equity dividends paid (8,284) (8,278) (16,362) ------------------------------------------ Net cash inflow (outflow) before financing 12,745 (1,776) (34,921) Financing ------------------------------------------ Issue of secured bonds - - 28,943 Sterling loans raised (repaid) 1,878 (439) (497) Expenses associated with share buy back (4) - - ------------------------------------------ Net cash inflow (outflow) from financing 1,874 (439) 28,446 ------------------------------------------ Increase (decrease) in cash 14,619 (2,215) (6,475) ------------------------------------------ THE MERCHANTS TRUST PLC Twenty Largest Equity Holdings as at 31st July 2000 Valuation % of Principal 31/07/2000 Total Activities £000's Assets* BP Amoco 29,784 5.4 Oil and gas BT 26,460 4.8 Telecommunications Shell Transport & Trading 19,296 3.5 Oil and gas Glaxo Wellcome 19,220 3.5 Pharmaceuticals Vodafone Airtouch 17,700 3.2 Telecommunications Imperial Tobacco 15,600 2.8 Tobacco CGNU 12,084 2.2 Insurance ***British Aerospace 11,757 2.1 Aerospace and defence National Grid 11,508 2.1 Electricity and telecommunications Lloyds TSB 11,324 2.0 Banking Royal Bank of Scotland 10,520 1.9 Banking Scottish & Southern Energy 9,864 1.8 Electricity Abbey National 9,737 1.8 Banking Johnson Matthey 9,500 1.7 Metal processing Standard Chartered 8,959 1.6 Banking Bank of Scotland 8,900 1.6 Banking Scottish & Newcastle 8,568 1.5 Brewing and leisure Associated British Foods 8,468 1.5 Food and grocery products Smith & Nephew 8,453 1.5 Health care British Energy 8,400 1.5 Electricity --------------------- 266,102 48.0 --------------------- ***Consists of Convertible Preference Shares *Total Assets include current liabilities Portfolio Analysis as at 31st July 2000 North UK America Total % % % Listed Equities 99.5 0.0 99.5 Unlisted Equities 0.0 0.1 0.1 ----------------------------- Total Equities 99.5 0.1 99.6 Net current assets 0.4 0.0 0.4 ----------------------------- Total Assets 99.9 0.1 100.0 -----------------------------

Companies

Merchants Trust (MRCH)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today