Final Results
Monks Investment Trust PLC
09 June 2004
THE MONKS INVESTMENT TRUST PLC
Results for the year to 30 April 2004
Over the year, net asset value (NAV) rose by 24.2% compared with a 15.5% rise in
the FTSE World Index in sterling terms.
• Performance. Good stock picking in the US and the UK helped to achieve outperformance against the
comparative index of 8.7 percentage points. The increased level of exposure to Japanese and Asian Pacific
markets and the presence of gearing also contributed. Being invested in the United States to a lesser
extent than the comparative index was a positive factor too.
• Second Half Results. Stockmarkets and Monks' performance were both stronger in the first half of the year
than in the second half. In the six months to 30 April NAV rose by 6.7% while the comparative index rose
by 3.0%.
• Investment Changes. In the first half, the Japanese and Asian Pacific elements were increased by £12m and
£11m respectively while a further £19m was invested in Japan in the second half. As the Manager became
less optimistic about the global outlook, short term borrowings of £31m were repaid in the second half.
• Dividend. An unchanged final dividend of 0.65p has been recommended which makes an unchanged total of
1.05p.
• Outlook. Economies are generally doing well and corporate profits are good, but stockmarkets, to date in
2004, have been volatile and trendless as a result of the unsettled political situation in the Gulf region
and the prospect of an increase in US interest rates. The Company's current gearing levels are under close
review.
Monks, with total assets of £692 million, invests internationally in order to
achieve capital growth. Monks is managed by Baillie Gifford & Co., the
independent Edinburgh based fund management group with around £29 billion under
management and advice.
- ends -
For further information please contact:
Richard Burns, Manager
The Monks Investment Trust PLC 0131 275 2000
Robert O'Riordan
Baillie Gifford & Co. 07730 412007
Mike Lord, Director
Broadgate Marketing 020 7726 6111
Baillie Gifford & Co. is authorised and regulated by the Financial Services
Authority.
THE MONKS INVESTMENT TRUST PLC
PERFORMANCE ATTRIBUTION (in sterling terms)
for the year to 30 April 2004
Computed relative to the FTSE World Index (in sterling terms) with net income
reinvested.
Monks Contribution
attributable to:
Index Allocation Asset Allocation Performance * Contribution
to relative Stock Asset +
return selection allocation
Portfolio 30.04.03 30.04.04 30.04.03 30.04.04 Monks Index
breakdown % % % % % % % % %
UK 10.5 10.0 29.6 25.0 25.1 19.3 1.6 1.4 0.2
Europe ex. UK 18.1 17.9 16.5 13.3 14.0 23.0 (1.3) (1.2) (0.1)
North America 58.0 55.2 47.3 40.5 17.5 11.1 3.2 2.4 0.8
Japan 7.1 9.4 8.0 14.8 41.1 46.7 0.1 (0.4) 0.5
Asia Pacific 5.0 6.0 8.5 10.6 35.1 32.8 0.7 0.1 0.6
Emerging
Markets 1.3 1.5 2.9 1.6 36.2 40.4 0.1 - 0.1
Bonds - - 9.5 5.4 12.9 - (0.4) - (0.4)
Cash - - 0.7 1.9 3.0 - (0.2) - (0.2)
Borrowings - - (23.0) (13.1) 2.1 - 3.0 - 3.0
Total 100.0 100.0 100.0 100.0 26.2 17.9 7.0 2.4 4.5
Past performance is no guarantee of future performance.
Source: HSBC/Baillie Gifford & Co.
* The above returns are calculated on a total return basis with net
income reinvested. Monks' figures represent returns on the Company's portfolio
and the index figure for each geographical area represent the return on the
appropriate FTSE World Index.
Contributions cannot be added together as they are geometric; for example to
calculate how a return of 26.2% against an index return of 17.9% translates into
a relative return of 7.0%, divide the portfolio return of 126.2 by the index
return of 117.9 and subtract one.
+ Asset allocation includes the contribution attributable to currency movements.
THE MONKS INVESTMENT TRUST PLC
The following is the unaudited preliminary statement for the year to 30 April
2004 which was approved by the Board on 8 June 2004. The Directors of The Monks
Investment Trust PLC are recommending to the Annual General Meeting of the
Company to be held on 3 August 2004 the payment of a final dividend of 0.65p net
(0.65p net last year) per ordinary share, making a total of 1.05p net (1.05p net
last year) per ordinary share for the year ended 30 April 2004.
STATEMENT OF TOTAL RETURN
(unaudited and incorporating the revenue account*)
For the year ended For the year ended
30 April 2004 30 April 2003
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on investments - 115,859 115,859 - (159,385) (159,385)
Currency gains/(losses) - 3,317 3,317 - (2,839) (2,839)
Income (note 1) 15,611 - 15,611 15,646 - 15,646
Investment management fee (3,311) - (3,311) (2,983) - (2,983)
Other administrative expenses (824) - (824) (703) - (703)
Net return before finance costs
and taxation 11,476 119,176 130,652 11,960 (162,224) (150,264)
Finance costs of borrowings (7,315) - (7,315) (8,147) - (8,147)
Return on ordinary activities
before taxation 4,161 119,176 123,337 3,813 (162,224) (158,411)
Tax on ordinary activities (1,160) - (1,160) (753) - (753)
Return on ordinary activities
after taxation 3,001 119,176 122,177 3,060 (162,224) (159,164)
Dividends in respect of equity (3,091) - (3,091) (2,983) - (2,983)
shares (note 2)
Transfer (from)/to reserves (90) 119,176 119,086 77 (162,224) (162,147)
Return per ordinary share 1.02p 40.49p 41.51p 1.04p (54.87p) (53.83p)
(note 3)
Dividends per ordinary share 1.05p 1.05p
* The revenue column of this statement is the profit and loss account of the
Company.
All revenue and capital items in this statement derive from continuing
operations.
THE MONKS INVESTMENT TRUST PLC
SUMMARISED BALANCE SHEET
at 30 April 2004
(unaudited)
30 April 2004 30 April 2003
£'000 £'000
Net assets
Investments at market value 681,256 602,937
Net liquid assets 10,903 3,667
Total assets (before deduction of borrowings) 692,159 606,604
Debentures and short term loans (note 4) (79,386) (112,917)
612,773 493,687
Capital and Reserves
Called-up share capital 14,718 14,718
Capital reserves 580,957 461,781
Revenue reserve 17,098 17,188
Equity shareholders' funds 612,773 493,687
Net asset value per ordinary share 208.0p 167.5p
(after deducting debentures at par)
Ordinary shares in issue (note 5) 294,355,295 294,355,295
DISTRIBUTION OF ASSETS
at 30 April 2004
(unaudited)
30 April 2004 30 April 2003
% %
Equities: United Kingdom 21.4 23.3
Continental Europe 11.8 13.6
North America 36.7 39.0
Japan 13.0 6.5
Asia Pacific 9.3 6.9
Other Emerging Markets 1.5 2.4
93.7 91.7
Bonds: UK 4.5 7.4
Continental Europe 0.2 0.3
North America - -
Net liquid assets 1.6 0.6
Total assets (before deduction of borrowings) 100.0 100.0
THE MONKS INVESTMENT TRUST PLC
SUMMARISED CASH FLOW STATEMENT
(unaudited)
For the year ended For the year ended
30 April 2004 30 April 2003
£'000 £'000 £'00 £'000
NET CASH INFLOW FROM OPERATING ACTIVITIES 11,958 13,133
NET CASH OUTFLOW FROM SERVICING OF FINANCE (7,316) (8,150)
TOTAL TAX PAID (816) (792)
FINANCIAL INVESTMENT
Acquisitions of investments (149,228) (266,999)
Disposals of investments 186,308 287,248
Realised currency gain/(loss) 382 (32)
NET CASH INFLOW FROM FINANCIAL INVESTMENT 37,462 20,217
EQUITY DIVIDENDS PAID (3,091) (4,121)
NET CASH INFLOW BEFORE FINANCING 38,197 20,287
FINANCING
Shares purchased for cancellation - (20,557)
Bank loans repaid (30,628) (34,291)
Bank loans drawn down - 34,131
NET CASH OUTFLOW FROM FINANCING (30,628) (20,717)
INCREASE/(DECREASE) IN CASH 7,569 (430)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Increase/(decrease) in cash in the year 7,569 (430)
Net outflow from bank loans 30,628 160
Exchange movement on bank loans 2,935 (2,807)
Other non-cash changes (32) (33)
MOVEMENT IN NET DEBT IN THE YEAR 41,100 (3,110)
NET DEBT AT 1 MAY (108,965) (105,855)
NET DEBT AT 30 APRIL (67,865) (108,965)
THE MONKS INVESTMENT TRUST PLC
NOTES
30 April 2004 30 April 2003
£'000 £'000
1. Income
Income from investments and interest receivable 15,508 15,502
Other income 103 144
2. The total cost of the dividends for the year is £3,091,000 (2003 - £2,983,000). If approved, the final
dividend will be paid on 6 August 2004 to all shareholders on the register at the close of business on 16
July 2004.
3. Return per ordinary share
Revenue return 3,001 3,060
Capital return 119,176 (162,224)
Return per ordinary share is based on the above totals for revenue and capital and on 294,355,295
(2003 - 295,654,199) ordinary shares, being the weighted average number of ordinary shares in issue
during the year.
4. The market value of debenture stocks at 30 April 2004 was £92,525,000 (30 April 2003 - £94,711,000).
There were no short term borrowings at 30 April 2004 (30 April 2003 - US$35.7million and Y2.14
billion drawn down under a short-term multi-currency loan facility).
5. At the AGM in July 2003 shareholders approved the renewal of the Company's authority to buy back its
own ordinary shares in respect of 44,123,858 ordinary shares of 5p each (equivalent to 14.99% of its
issued share capital at that date). No shares have been bought back during the year and therefore at
30 April 2004 the Company's authority to buy back its own shares remained unchanged at 44,123,858
ordinary shares.
6. The financial information set out above does not constitute the Company's statutory accounts for the
year ended 30 April 2004. The financial information for 2003 is derived from the statutory accounts for 2003
which have been delivered to the Registrar of Companies. The Auditors have reported on the 2003
accounts; their report was unqualified and it did not contain a statement under section 237(2) or (3)
of the Companies Act 1985. The statutory accounts for 2004 will be finalised on the basis of the
financial information presented in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
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