Final Results

Pacific Horizon Investment Tst PLC
6 September 2000



PACIFIC HORIZON INVESTMENT TRUST PLC

Results for the year to 31 July 2000

6 September 2000

 

Salient points

 
 
* Net asset value per share increased 24.8% to 55.35p in the year to 31 July
2000 compared with an increase of 1.85%, in sterling terms, in the benchmark
MSCI All Countries Far East ex Japan Free Index. 
 
* In the six months to 31 July 2000 the net asset value per share fell 6.4%
against a fall of 9.4% in the MSCI All Countries Far East ex Japan Free Index
in sterling terms. This followed a strong performance in the first half of the
Company's year when the NAV rose 33.3% to 59.11p against a rise of 12.4% in
the index. 
 
* TMT holdings greatly enhanced performance during the first half of the
Company's year. 
 
* The Board recommends that a dividend of 0.20p per ordinary share should be
paid, the same as the previous year. 
 
* The outlook for the Chinese economy is bright. The Company has significantly
increased its Hong Kong and China weighting in the portfolio, largely at the
expense of Korea, Singapore and Taiwan. 
 
* Share buy-backs. The Board of Pacific Horizon agreed to take steps to seek
authority for the Company to buy back its own shares. A circular will be
posted to shareholders and warrantholders in due course. 
Pacific Horizon Investment Trust PLC (Pacific Horizon) aims to achieve
capital growth through investment in the stockmarkets of the Asia-Pacific
region (excluding Japan). The Company has total assets of £49.6 million. An
ISA and Share Plan are available.
 
Pacific Horizon is managed by Baillie Gifford & Co., the leading independent
Edinburgh based fund management group with £22 billion under management and
advice.
 
 
 
For further information please contact:
 

Angus Franklin, Fund Manager     

Baillie Gifford & Co.     0131 222 4000
 
Mike Lord, Director
Broadgate Marketing     0207 726 6111
 
 
Baillie Gifford & Co. is regulated by IMRO. 
 
 
 

PACIFIC HORIZON INVESTMENT TRUST PLC

The following is the unaudited preliminary statement for the year to 31 July
2000 which was approved by the Board on 5 September 2000. The Directors of
Pacific Horizon Investment Trust PLC are recommending to the Annual General
Meeting of the Company to be held on 24 October 2000 the payment of a final
dividend of 0.20p net (31 July 1999 - 0.20p net) per ordinary share for the
year ended 31 July 2000.

 
 

STATEMENT OF TOTAL RETURN

(unaudited and incorporating the revenue account*) 
 

                                                                              
                                                For the year ended            
                                                   31 July 2000               
                                     Revenue               Capital    Total   
                                                                              
                                     £'000                 £'000      £'000   
                                                                              
  Gains on investments               -                     9,229      9,229   
  Currency losses                    -                     (560)      (560)   
  Income (note 1)                    1,183                 -          1,183   
  Investment management fee          (438)                 -          (438)   
  Other administrative expenses      (201)                 -          (201)   
  Net return before finance costs                                             
  and taxation                       544                   8,669      9,213   
  Finance costs of borrowings        (325)                 -          (325)   
  Return on ordinary activities                                               
  before taxation                    219                   8,669      8,888   
  Tax on ordinary activities         (44)                  -          (44)    
  Return on ordinary activities                                               
  after taxation                     175                   8,669      8,844   
  Dividend in respect of equity                                               
  shares (note 2)                    (158)                 -          (158)   
  Transfer to reserves               17                    8,669      8,686   
                                                                              
  Return per ordinary share          0.22p                 11.00p     11.22p  
  (note 3)                                                                    
                                                                              
  Dividend per ordinary share        0.20p                                    
 
 

                                                                              
                                              For the year ended              
                                                 31 July 1999                 
                                 Revenue              Capital   Total         
                                 (restated)+                    (restated)+   
                                 £'000                £'000     £'000         
                                                                              
  Gains on investments           -                    12,490    12,490        
  Currency losses                -                    (198)     (198)         
  Income (note 1)                733                  -         733           
  Investment management fee      (300)                -         (300)         
  Other administrative expenses  (138)                -         (138)         
  Net return before finance                                                   
  costs and taxation             295                  12,292    12,587        
  Finance costs of borrowings    (14)                 -         (14)          
  Return on ordinary                                                          
  activities before taxation     281                  12,292    12,573        
  Tax on ordinary activities     (53)                 -         (53)          
  Return on ordinary                                                          
  activities after taxation      228                  12,292    12,520        
  Dividend in respect of                                                      
  equity shares (note 2)         (158)                -         (158)         
  Transfer to reserves           70                   12,292    12,362        
                                                                              
  Return per ordinary share      0.29p                15.59p    15.88p        
  (note 3)                                                                    
                                                                              
  Dividend per ordinary share    0.20p                                        


There was no dilution of the above return in either year.
 
* The revenue column of this statement is the profit and loss account of the
Company. 
All revenue and capital items in the above statement derive from continuing
operations. 
+ Restated to comply with FRS 16 'Current Tax'. 



PACIFIC HORIZON INVESTMENT TRUST PLC

SUMMARISED BALANCE SHEET

at 31 July 2000 
(unaudited) 
 

                                                                              
                                                                              
                                                 31 July 2000    31 July 1999 
                                                 £'000           £'000        
  NET ASSETS                                                                  
  Fixed asset investments                        49,173          37,269       
  Net liquid assets                              476             855          
  Total assets (before deduction of bank loan)   49,649          38,124       
  Bank loan (note 4)                             (6,009)         (3,170)      
                                                 43,640          34,954       
                                                                              
  CAPITAL AND RESERVES                                                        
  Called-up share capital                        7,884           7,884        
  Capital reserves                               35,011          26,342       
  Revenue reserve                                745             728          
  EQUITY SHAREHOLDERS' FUNDS                     43,640          34,954       
                                                                              
  NET ASSET VALUE PER ORDINARY SHARE             55.35p          44.33p       

  There was no dilution of net asset value at either date (note 5)     
       
  Ordinary shares in issue                       78,841,864      78,841,864   
  Warrants in issue                              15,763,976      15,763,976   
 
 
 

DISTRIBUTION OF ASSETS

at 31 July 2000 
(unaudited) 
                          
                                                  31 July 2000   31 July 1999 
                                                  %              %            
                                                                              
  Equities:                 Hong Kong and China   59.6           27.9         
                            Singapore             9.6            19.7         
                            Korea                 8.4            18.6         
                            Taiwan                7.4            8.4          
                            Malaysia              4.3            6.7          
                            Thailand              2.7            3.6          
                            Indonesia             1.6            2.3          
                            Philippines           1.3            2.4          
                            Other                 4.1            8.2          
  Total equities                                  99.0           97.8         
  Net liquid assets                               1.0            2.2          
  Total assets (total assets less current                 
  liabilities before deduction of bank loan)      100.0          100.0        
                   
Total equities include 1.4% (31 July 1999 - 1.5%) of convertible issues.



PACIFIC HORIZON INVESTMENT TRUST PLC

  SUMMARISED CASH FLOW STATEMENT                                              
  (unaudited)                                                                 
                           For the year ended          For the year ended     
                              31 July 2000                31 July 1999        
                          £'000        £'000               £'000      £'000   
                                                                              
  NET CASH INFLOW FROM                                                  
  OPERATING ACTIVITIES                 511                            317     
                                                                              
  NET CASH OUTFLOW FROM                                                 
  SERVICING OF FINANCE                (334)                           -       
  TOTAL TAX                                                           
  RECLAIMED/(PAID)                     137                            (173)   
  
  FINANCIAL INVESTMENT                                                        
  Acquisitions of
  investments            (44,860)                         (27,392)           
  Disposals of 
  investment              43,051                           21,267             
  Realised currency
  profit/(loss)              117                              (49)            
                                                               
  NET CASH OUTFLOW FROM                                        
  FINANCIAL INVESTMENT                 (1,692)                        (6,174) 
             
  EQUITY DIVIDEND PAID                 (158)                          (710)   
  
  NET CASH OUTFLOW                     (1,536)                        (6,740) 
  BEFORE FINANCING                                                            
  
  FINANCING                                                                   
  Net loans drawn down    2,162                            3,021              
  Proceeds from                                                            
  exercise of warrants    -                                1                  
 
  NET CASH INFLOW FROM                    
  FINANCING                            2,162                          3,022   
                                                            
  INCREASE/(DECREASE)                   
  IN CASH                              626                            (3,718) 
                                    
                                                                              
  RECONCILIATION OF NET                                                       
  CASH FLOW TO MOVEMENT                                                       
  IN NET DEBT                                                                 
  Increase/(decrease)                   
  in cash in the period                626                            (3,718) 
  Cash received from                    
  bank loan                            (2,162)                        (3,021)
  Exchange movement                    (677)                          (149)   
                                                                              
  MOVEMENT IN NET DEBT
  IN THE PERIOD                        (2,213)                        (6,888) 
  NET (DEBT)/FUNDS AT 1
  AUGUST 1999                          (2,417)                        4,471   
  NET DEBT AT 31 JULY                  
  2000                                 (4,630)                        (2,417) 
  

                                       
PACIFIC HORIZON INVESTMENT TRUST PLC

NOTES

                                                
                                                       
                                              31 July 2000    31 July 1999
                                                     £'000           £'000
 
1.     Income                                                   (restated)

                                                                          
       Income from investments and 
       interest receivable                           1,181            733 
       Other income                                  2                Nil 
 
2. The total cost of the dividend for the year is £158,000 (31 July 1999 -
£158,000). If approved, the final dividend of 0.20p per ordinary share will
be paid on 27 October 2000 to shareholders on the register at the close of
business on 6 October 2000.
 
3.     Return per ordinary share 

                                                          
       Revenue return                                  175           228 
       Capital return                                  8,669         12,292 
 

Return per ordinary share is based on the above totals for revenue and
capital and on 78,841,864 (31 July 1999 - 74,841,220) ordinary shares, being
the weighted average number of ordinary shares in issue during the year.

 
     There was no dilution of the above returns in either year
 
4.  A one year £10 million multi-currency loan has been arranged with The
    Royal Bank of Scotland plc. At 31 July 2000 there were outstanding
    drawings of US$9 million (31 July 1999 - Y400 million and US$1.65
    million).
 
5.  The diluted net asset value per ordinary share has been calculated in
    accordance with FRS14 'Earnings per share'. The calculation determines the
    potential number of dilutive shares which would be issued on the exercise
    of warrants by reference to the share price (fair value) at the year end.
    Under this method there was no dilution to the net asset value at either
    date.

    The fully diluted net asset value per ordinary share has been calculated
    on the assumption that the 15,763,976 warrants in issue at 31 July 1999
    and 2000 were fully exercised at each date. Under this method there was no
    dilution to the net asset value at either date. The outstanding warrants
    are exercisable at 56p on 30 June in either of the remaining years 2001
    and 2002.

6.  Change in accounting policy FRS 16 'Current Tax' came into effect for
    reporting periods ending on or after 23 March 2000. The change introduced
    by the Standard, accounting for UK dividend income net of tax, has been
    reflected in the 2000 financial statements with corresponding changes to
    the comparative figures. In the year to 31 July 2000 this reduces gross
    income and taxation equally by £1,000 (31 July 1999 - £5,000); the net
    effect has no impact upon the revenue return attributable to equity
    shareholders.
 
7.  The financial information set out above does not constitute the Company's
    statutory accounts for the year ended 31 July 2000. The financial
    information for 1999 is derived from the statutory accounts for 1999 which
    have been delivered to the Registrar of Companies. The Auditors have
    reported on the 1999 accounts, their report was unqualified and did not
    contain a statement under section 237(2) or (3) of the Companies Act 1985.
    The statutory accounts for 2000 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.