Final Results
Monks Investment Trust PLC
08 June 2005
THE MONKS INVESTMENT TRUST PLC
Results for the year to 30 April 2005
Boosted by strong US returns, net asset value (NAV)* rose by 7.0% over the year
while the FTSE World Index in sterling terms rose by 1.3%.
• Performance. The main factor in the outperformance was the US element of
the portfolio, where underexposure relative to the Index combined with very
good stock selection yielded strong returns. Our investments in US energy
companies proved particularly beneficial. Above Index exposure to the UK
and Asian Pacific markets was also helpful.
• Second Half Results. In the second half NAV* rose by 4.9% while the Index
rose by 0.9%.
• Dividend. Earnings of 1.73p were 70% higher than last year as interest
received rose and companies' dividend payments were more generous.
Consequently, a final dividend of 1.20p (2004 - 0.65p) is recommended
giving a total for the year of 1.70p (2004 - 1.05p).
• Investment Activity. During the year exposure to equities was reined back
due to caution over the outlook. Deposits and fixed interest holdings
currently broadly offset the £80m of debentures.
• Outlook. Prospects remain uncertain. Although many companies in the UK and
abroad are doing well, imbalances in the US economy (the trade deficit,
consumer indebtedness and a deteriorating fiscal position) have not
improved. For the time being, a fully invested equity position without any
gearing is being maintained.
* Net asset values have been calculated after deducting debentures at par.
Monks, with total assets of £774 million at 6 June, invests internationally in
order to achieve capital growth. Monks is managed by Baillie Gifford & Co, the
independent Edinburgh based fund management group with around £34 billion under
management and advice.
- ends -
For further information please contact:
Richard Burns, Manager
The Monks Investment Trust PLC 0131 275 2000
(mobile) 07703 439 226
Robert O'Riordan
Baillie Gifford & Co 07730 412007
Mike Lord, Director
Broadgate Marketing 020 7726 6111
________________________________________________________________________________
THE MONKS INVESTMENT TRUST PLC
PERFORMANCE ATTRIBUTION (in sterling terms)
for the year to 30 April 2005
Computed relative to the FTSE World Index (in sterling terms) with net income
reinvested.
_____________________________________________________________________________________________________________________
Contribution
Monks Contribution attributable to:
Index Allocation Asset Allocation Performance * to relative Stock Asset +
Portfolio 30.04.04 30.04.05 30.04.04 30.04.05 Monks Index return selection allocation
breakdown % % % % % % % % %
_____________________________________________________________________________________________________________________
UK 10.0 10.2 25.0 21.1 9.5 10.6 0.5 (0.3) 0.8
Europe ex. UK 17.9 19.0 13.3 11.2 8.9 10.4 (0.6) (0.1) (0.5)
North America 55.2 54.0 40.5 39.8 10.0 (0.1) 4.4 3.8 0.6
Japan 9.4 8.6 14.8 12.2 (4.3) (6.1) (0.3) 0.2 (0.5)
Asia Pacific 6.0 6.3 10.6 12.7 15.9 13.6 0.8 0.2 0.6
Emerging Markets 1.5 1.9 1.6 3.4 35.0 13.7 0.2 0.2 -
Bonds - - 5.4 3.6 6.7 - 0.1 - 0.1
Cash - - 1.9 8.3 5.9 - 0.1 - 0.1
Borrowings - - (13.1) (12.3) 9.0 - (0.7) - (0.7)
_____________________________________________________________________________________________________________________
Total 100.0 100.0 100.0 100.0 8.2 3.6 4.5 4.0 0.5
_____________________________________________________________________________________________________________________
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 and debentures valued at par. Monks' figures represent the
returns on the Company's portfolio and the index figures 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 8.2% against an index return of 3.6% translates into a
relative return of 4.5%, divide the portfolio return of 108.2 by the index
return of 103.6 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
2005 which was approved by the Board on 7 June 2005. The Directors of The Monks
Investment Trust PLC are recommending to the Annual General Meeting of the
Company to be held on 2 August 2005 the payment of a final dividend of 1.20p net
(0.65p net last year) per ordinary share, making a total of 1.70p net (1.05p net
last year) per ordinary share for the year ended 30 April 2005.
STATEMENT OF TOTAL RETURN
(unaudited and incorporating the revenue account*)
_______________________________________________________________________________________________________________
For the year ended For the year ended
30 April 2005 30 April 2004
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
_______________________________________________________________________________________________________________
Gains on investments - 39,899 39,899 - 115,859 115,859
Currency gains - 1,228 1,228 - 3,317 3,317
Income (note 1) 16,955 - 16,955 15,611 - 15,611
Investment management fee (3,428) - (3,428) (3,311) - (3,311)
Other administrative expenses (711) - (711) (824) - (824)
_________________________________ __________________________________
Net return before finance costs
and taxation 12,816 41,127 53,943 11,476 119,176 130,652
Finance costs of borrowings (6,982) - (6,982) (7,315) - (7,315)
_________________________________ __________________________________
Return on ordinary activities
before taxation 5,834 41,127 46,961 4,161 119,176 123,337
Tax on ordinary activities (770) - (770) (1,160) - (1,160)
_________________________________ __________________________________
Return on ordinary activities
after taxation 5,064 41,127 46,191 3,001 119,176 122,177
Dividends in respect of equity (4,953) - (4,953) (3,091) - (3,091)
shares (note 2)
_________________________________ __________________________________
Transfer to/(from) reserves 111 41,127 41,238 (90) 119,176 119,086
================================= ==================================
Return per ordinary share 1.73p 14.09p 15.82p 1.02p 40.49p 41.51p
(note 3) ================================= ==================================
Dividends per ordinary share 1.70p 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 2005
(unaudited)
________________________________________________________________________________________________________________
30 April 2005 30 April 2004
£'000 £'000
________________________________________________________________________________________________________________
Net assets
Investments at market value 676,650 681,256
Net liquid assets 51,921 10,903
______________ ______________
Total assets (before deduction of borrowings) 728,571 692,159
Debentures (note 4) (79,419) (79,386)
______________ ______________
649,152 612,773
______________ ______________
Capital and Reserves
Called-up share capital 14,568 14,718
Capital reserves 617,375 580,957
Revenue reserve 17,209 17,098
______________ ______________
Equity shareholders' funds 649,152 612,773
______________ ______________
Net asset value per ordinary share 222.6p 208.0p
(after deducting debentures at par)
Ordinary shares in issue (note 5) 291,355,295 294,355,295
DISTRIBUTION OF ASSETS
at 30 April 2005
(unaudited)
________________________________________________________________________________________________________________
30 April 2005 30 April 2004
% %
________________________________________________________________________________________________________________
Equities: United Kingdom 18.9 21.4
Continental Europe 10.0 11.8
North America 35.6 36.7
Japan 10.9 13.0
Asia Pacific 11.3 9.3
Other Emerging Markets 3.0 1.5
______________ ______________
89.7 93.7
Bonds: UK 3.0 4.5
Continental Europe 0.2 0.2
Net liquid assets 7.1 1.6
______________ ______________
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 2005 30 April 2004
£'000 £'000 £'000 £'000
___________________________________________________________________________________________________________
NET CASH INFLOW FROM OPERATING ACTIVITIES 12,855 11,958
NET CASH OUTFLOW FROM SERVICING OF FINANCE (6,949) (7,316)
TOTAL TAX PAID (773) (816)
FINANCIAL INVESTMENT
Acquisitions of investments (134,487) (149,228)
Disposals of investments 181,813 186,308
Realised currency gains 20 382
______________ ______________
NET CASH INFLOW FROM FINANCIAL INVESTMENT 47,346 37,462
EQUITY DIVIDENDS PAID (3,370) (3,091)
______________ ______________
NET CASH INFLOW BEFORE USE OF LIQUID RESOURCES AND
FINANCING 49,109 38,197
LIQUID RESOURCES
Increase in short term deposits (18,000) -
______________ ______________
NET CASH OUTFLOW FROM USE OF LIQUID RESOURCES (18,000) -
FINANCING
Shares purchased for cancellation (4,859) -
______________ ______________
Bank loans repaid - (30,628)
NET CASH OUTFLOW FROM FINANCING (4,859) (30,628)
______________ ______________
INCREASE IN CASH 26,250 7,569
______________ ______________
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Increase in cash in the year 26,250 7,569
Increase in short term deposits 18,000 -
Net outflow from bank loans - 30,628
Exchange movement on bank loans - 2,935
Other non-cash changes (33) (32)
______________ ______________
MOVEMENT IN NET DEBT IN THE YEAR 44,217 41,100
NET DEBT AT 1 MAY (67,865) (108,965)
______________ ______________
NET DEBT AT 30 APRIL (23,648) (67,865)
______________ ______________
THE MONKS INVESTMENT TRUST PLC
NOTES
______________________________________________________________________________________________________________
30 April 2005 30 April 2004
£'000 £'000
______________________________________________________________________________________________________________
1. Income
Income from investments and interest receivable 16,852 15,508
Other income 103 103
2. The total cost of the dividends for the year is £4,953,000 (2004 -
£3,091,000). If approved, the final dividend will be paid on 5 August 2005
to all shareholders on the register at the close of business on
15 July 2005.
3. Return per ordinary share
Revenue return 5,064 3,001
Capital return 41,127 119,176
Return per ordinary share is based on the above totals for revenue and
capital and on 291,979,953 (2004 - 294,355,295) 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 2005 was £96,577,000
(30 April 2004 - £92,525,000).
5. In the year to 30 April 2005 the Company bought back 3,000,000 ordinary
shares with a nominal value of £150,000 at a total cost of £4,859,000.
At 30 April 2005 the Company had authority to buy back a further 43,674,158
ordinary shares.
6. The financial information set out above does not constitute the Company's
statutory accounts for the year ended 30 April 2005. The financial
information for 2004 is derived from the statutory accounts for 2004 which
have been delivered to the Registrar of Companies. The Auditors have
reported on the 2004 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 2005 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.
None of the views expressed in this document should be construed as advice
to buy or sell a particular investment.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 22nd November 2024
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