Final Results

Henderson TR Pacific Inv. Trust PLC 04 February 2003 HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 4 February 2003 Henderson TR Pacific Investment Trust plc announces preliminary results for the year ended 31 December 2002. Henderson TR Pacific Investment Trust plc is a specialist company seeking capital growth from Pacific region stock markets and economies excluding Japan and Australasia. • The company suffered a negative total return of -18.2% compared with -17.9% for the benchmark MSCI AC Far East (free) Ex-Japan Index. • The share price discount to net assets fell from 18.9% to 6.8% over the year as a whole - part of a general tendency for discounts to fall amongst Far Eastern investment trusts. The company purchased 350,000 of its own shares in the period. • Overall gearing of 1.3% at year-end. Improved borrowing profile with new multi-currency facility being finalised. • David Robins, most recently Chairman and CEO of ING Barings, joined the Board on 2 December 2002. Key Extracts from the Preliminary Statement (Unaudited) (Audited) 31 December 2002 31 December 2001 Net Asset Value per Ordinary Share 64.1p 79.0p Proposed Dividend per Ordinary Share: - Final 0.60p 0.25p - Special Nil 0.25p Commenting on market conditions Chairman Iain Dale, said: 'Most Asian economies performed well, continuing a steady recovery from the 1997 financial crisis. Stock markets however remained closely correlated to the performance of global peers with notable falls in the second half offsetting a resilient performance over the first six months. Only Thailand and Indonesia achieved positive stock market performances, with sterling adjusted rises of 8.8% and 13.9% respectively. For the long term we remain very optimistic for the Pacific region. Despite the prevailing uncertain global outlook we would expect that the region's attractive valuations will provide a degree of protection.' - MORE - - 2 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Extracts from the Chairman's Statement 2002 was a frustrating year for investors in Pacific region stock markets. Most East Asian economies performed well, continuing their steady recovery from the traumas following the 1997 financial crisis. Stock markets, however, remained closely correlated to the performance of global peers with notable falls in the second half offsetting a resilient performance over the first six months. Poor investment sentiment Global stock markets were adversely affected by continued weakness in the world's leading economies which failed to recover as had been hoped and suffered renewed deflationary pressure as the year progressed. A deteriorating political climate also served to depress investors' sentiment as troubles in the Middle East magnified. Company profits remained under considerable pressure leaving valuations looking high in most of the world's major stock markets. As a result there were declines of 30% in both the S&P 500 Index and the DJ Euro Stoxx Europe Index in sterling terms. Performance Only Thailand and Indonesia achieved positive stock market performances with sterling adjusted rises of 8.8% and 13.9% respectively. Currencies played an important part in the adverse stock market movements since most still move in line with the US dollar, which weakened by 9.6% against sterling over the year. Of the larger stock markets only South Korea fell by less than 10% in sterling terms. Notable stock market declines were reflected in sterling adjusted falls of 41.6% in China's B Share Index, and of 27.0% and 26.1% in Taiwan and Hong Kong. Our benchmark index the MSCI AC Far East (Free) Ex-Japan Index, which rose slightly over the first half year, fell by 17.9% for the full year. Our own net assets per share had advanced by 4.5% over the first six months but for the full year suffered a decline of 18.2% on a total return basis. As a growth orientated investment trust the tendency is to perform better than the benchmark index in a rising market and worse than the index in a falling market. Dividend The company's policy is to seek capital growth so dividends are normally modest. The Board has in the past paid a basic final dividend and, in addition, a special dividend to meet the Inland Revenue requirement for investment trusts not to retain more than 15% of their income from shares and securities. The result of separating administration charges from the management fee and of recognising stock dividends from Taiwanese companies as income rather than capital, as had been our previous practice, was to raise revenue after tax by £0.7 million. Rather than continue the practice of paying special dividends, the Board will in future follow a policy of paying dividends sufficient to retain the company's status as an investment trust. A final dividend of 0.60p per share is proposed for the year. Borrowings Our US$30 million 5 year bank loan matured and was repaid in March 2002. We have been negotiating a flexible multi-currency facility, which has not yet been finalised. In the meantime a temporary multi-currency facility for £15 million remains available from the Royal Bank of Scotland PLC. This was used actively over the first few months but borrowings were reduced from August and there was low overall gearing of 1.3% at the year end. - MORE - - 3 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Share Repurchases There was a general tendency for discounts to fall amongst Far East investment trusts. Our share price discount to net assets fell from 18.9% to 6.8% over the year as a whole. However, an opportunity did arise in October to repurchase 350,000 shares for cancellation at a price of 53.0p per share, an attractive discount of 15.6%. Charitable Contributions The Board agreed to contribute £18,500 in 2002 in support of children's charities in Thailand and the Philippines. Directors Wallace Clapperton, who has been a dedicated and enthusiastic independent director, will retire at the forthcoming Annual General Meeting after ten years of significant service. This begins a period of change towards a new generation of independent directors who will assume the responsibility to take the company forward. On behalf of shareholders and colleagues on the Board I wish to thank Wallace for his commitment. David Robins joined the Board on 2 December 2002 and I am delighted to be able to introduce him to shareholders at the forthcoming Annual General Meeting. David was most recently Chairman and Chief Executive of ING Barings. He previously held senior management positions at UBS and began his career as an economist covering the Far East. I am convinced David has the qualities to make a valuable contribution to the company and look forward to working with him. We continue to maintain a balance of geographical and technical skills among the directors who as a Board can thus actively contribute to the policy and governance of the company. The Earl of Limerick We were greatly saddened to learn of the death of Lord Limerick on 8 January 2003, aged 72. Pat served as a director of this company and its predecessors, TR Pacific Basin Investment Trust and International Investment Trust for sixteen years. He was always highly influential and will be very fondly remembered by all of us. Outlook Poor global stock market sentiment continues to create attractive longer term investment opportunities for investors in Far East stock markets. Despite some outperformance over the last year, most companies continue to trade at relatively low valuations, despite better profits growth. Moreover, China is finally emerging as a strongly growing and highly significant force globally, able to manufacture in huge volume and export competitively throughout the world. Its strong growth affects the outlook both regionally and globally. For the long term we remain very optimistic for the Pacific region. Despite the prevailing uncertain global outlook we would expect that the region's attractive valuations will provide a degree of protection in an uncertain world. Iain Dale CBE 4 February 2003 - MORE - - 4 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Statement of Total Return (incorporating the revenue account) (Unaudited) (Audited) Year ended 31 December 2002 Year ended 31 December 2001 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital losses from investments - (29,768) (29,768) - (12,899) (12,899) Income from fixed asset investments 3,551 - 3,551 3,791 - 3,791 Other interest receivable and similar income 93 - 93 560 - 560 --------- ---------- ---------- --------- ---------- ---------- Gross revenue and capital losses 3,644 (29,768) (26,124) 4,351 (12,899) (8,548) Management fee (621) (1,102) (1,723) (1,075) (1,075) (2,150) Other administrative expenses (517) - (517) (450) - (450) -------- ----------- ---------- --------- ----------- ---------- Net return/(loss) on ordinary activities before interest payable and taxation 2,506 (30,870) (28,364) 2,826 (13,974) (11,148) Interest payable (132) (395) (527) (370) (1,111) (1,481) ---------- ----------- ---------- ---------- ----------- ---------- Net return/(loss) on ordinary activities before taxation 2,374 (31,265) (28,891) 2,456 (15,085) (12,629) Taxation on net return/(loss) on ordinary (797) 377 (420) (923) 577 (346) activities ----------- ---------- ----------- ----------- ---------- ----------- Net return/(loss) on ordinary activities after taxation 1,577 (30,888) (29,311) 1,533 (14,508) (12,975) Proposed ordinary dividend: Final: 0.60p per share (2001: 0.25p) (1,223) - (1,223) (510) - (510) Special: Nil (2001: 0.25p) - - - (510) - (510) ---------- ------------ ---------- ---------- ------------ ---------- (1,223) - (1,223) (1,020) - (1,020) ---------- ------------ ---------- ---------- ------------ ---------- Transfer to/(from) reserves 354 (30,888) (30,534) 513 (14,508) (13,995) ====== ======= ======= ====== ======= ======= Return/(loss) per ordinary share (note 1) 0.77p (15.13p) (14.36p) 0.75p (7.08p) (6.33p) The revenue columns of this statement represent the profit and loss accounts of the company. - MORE - - 5 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Balance Sheet At 31 December 2002 (Unaudited) (Audited) 31 December 2002 31 December 2001 £'000 £'000 --------------------- -------------------- Fixed asset investments: Listed at market value - overseas 133,646 167,079 Unlisted at directors' valuation 146 161 ---------- ---------- 133,792 167,240 ---------- ---------- Current assets Debtors 177 2,114 Bank balances and short term deposits 5,482 14,204 ---------- ---------- 5,659 16,318 Creditors: amounts falling due within one year (8,838) (22,224) ---------- ---------- Net current liabilities (3,179) (5,906) ---------- ---------- Total net assets 130,613 161,334 ====== ====== Capital and reserves Called up share capital 10,192 10,210 Other capital reserves 115,141 146,198 Revenue reserve 5,280 4,926 ---------- ---------- Equity shareholders' funds 130,613 161,334 ====== ====== Net asset value per ordinary share (note 2) 64.1p 79.0p - MORE - - 6 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Cash Flow Statement For the year ended 31 December 2002 (Unaudited) (Audited) Year ended Year ended 31 December 2002 31 December 2001 £'000 £'000 £'000 £'000 -------------- ------------- -------------- ------------ Net cash inflow from operating activities 533 1,334 Servicing of finance Interest paid (952) (1,465) ----------- ----------- Net cash outflow from servicing of finance (952) (1,465) Taxation Withholding tax paid (119) - UK income tax recovered 39 198 ---------- ---------- Net tax (paid)/recovered (80) 198 Financial investment Purchases of investments (79,699) (74,364) Sales of investments 84,983 75,168 ------------- ------------- Net cash inflow from financial investment 5,284 804 Equity dividends paid (1,020) (1,131) Management of liquid resources Cash withdrawn from/(placed on) short term deposit 9,133 (5,872) ----------- ----------- Net cash inflow/(outflow) before financing 12,898 (6,132) Financing Repurchases of ordinary shares (187) (773) Repayment of multi-currency loan facility (12,206) - ----------- ----------- Net cash outflow from financing (12,393) (773) ---------- ---------- Increase/(decrease) in cash 505 (6,905) ====== ====== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 505 (6,905) Cash (inflow)/outflow from management of liquid resources (9,133) 5,872 Cash outflow from debt financing 12,206 - ---------- ---------- Change in net debt resulting from cash flows 3,578 (1,033) Exchange movements 1,167 (295) ---------- ---------- 4,745 (1,328) Net debt at 1 January (6,409) (5,081) ---------- ---------- Net debt at 31 December (1,664) (6,409) ====== ====== - MORE - - 7 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Notes: 1. Return/(loss) per ordinary share Revenue returns per ordinary share are based on earnings attributable to the ordinary shares of £1,577,000 (year ended 31 December 2001: £1,533,000) and on the weighted average number of ordinary shares in issue during the year to 31 December 2002, being 204,112,811 (year ended 31 December 2001: 205,129,214). Capital losses per ordinary share are based on net capital losses attributable to the ordinary shares of £30,888,000 (year ended 31 December 2001: loss of £14,508,000) and on the weighted average number of ordinary shares in issue during the year, as shown above. 2. Net Asset Value per Ordinary Share The net asset value per ordinary share is based on net assets attributable to ordinary shares of £130,613,000 (31 December 2001: £161,334,000) and on the 203,843,359 (31 December 2001: 204,193,359) ordinary shares in issue at 31 December 2002. 3. Share Buy-Backs The Company was granted authority to repurchase up to 30,424,810 ordinary shares at the Annual General Meeting held on 8 April 2002. During the year to 31 December 2002 the company purchased 350,000 ordinary shares for cancellation at a price of 53.0p per share, a discount of 15.6%, at a cost of £187,000. The net asset value was enhanced by £33,000. 4. 2001 Accounts The figures and financial information for the year ended 31 December 2001 are an extract of the latest published accounts of the company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under Section 237(2) or 237(3) of the Companies Act 1985. 5. 2002 Accounts The preliminary figures for the year ended 31 December 2002 have been extracted from the latest company accounts. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 6. Dividend A final dividend of 0.60p per ordinary share will, if approved by shareholders, be paid on 17 April 2003 to shareholders recorded on the Register of Members on 14 March 2003. The company's shares go ex-dividend on 12 March 2003. 7. Annual General Meeting The annual report will be posted to shareholders in March 2003 and thereafter copies will be available at the registered office at 4 Broadgate, London EC2M 2DA. The Annual General Meeting of the company will be held at 4 Broadgate, London EC2M 2DA on Monday 14 April 2003 at 12.30 pm. - MORE - - 8 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Stock Market Performance Comparison for the year to 31 December 2002 Local Currency Sterling Adjusted % % South Korea -9.5 -9.4 Taiwan -19.8 -27.0 China* -35.4 -41.6 Hong Kong -18.2 -26.1 Thailand +17.3 +8.8 The Philippines -12.8 -23.8 Malaysia -7.2 -16.1 Singapore -18.2 -21.3 Indonesia +8.4 +13.9 * The local movements on the China B Index have been calculated with reference to a US$ denominated price index. Geographical Distribution of the Investment Portfolio As at 31 December 2002 As at 31 December 2001 % % South Korea 29.3 28.2 Taiwan 15.4 17.0 China 11.6 13.9 Hong Kong 12.3 22.5 Thailand 11.1 3.7 The Philippines 0.9 0.0 Malaysia 9.7 3.4 Singapore 8.2 10.0 Indonesia 0.0 0.0 Vietnam 1.5 1.3 100.0 100.0 ==== ==== - MORE - - 9 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2002 Sector Analysis of Investments As at 31 December 2002 As at 31 December 2001 % % Consumer Discretionary 19.7 16.5 Consumer Staples 5.1 1.8 Energy 3.9 2.3 Financials and Property 25.2 24.3 Healthcare 0.0 0.0 Industrial and Transport 10.4 12.4 Information Technology 16.9 22.1 Materials 6.3 5.4 Telecommunications Services 8.3 10.8 Utilities 4.2 4.4 100.0 100.0 ==== ==== Top 20 Investments as at 31 December 2002 Company Country Sector Value of Investment £'000 Samsung Electronics South Korea Information Technology 4,937 Johnson Electric Hong Kong Industrials and Transport 4,320 Li & Fung Hong Kong Consumer Discretionary 3,785 Huaneng Power International China Utilities 3,700 Siam Cement Thailand Materials 3,577 CNOOC China Energy 3,560 LG Chem South Korea Materials 3,404 Kookmin Bank South Korea Financials and Property 3,295 Shinhan Financial South Korea Financials and Property 3,254 SK Telecom South Korea Telecommunication Services 3,220 Shinsegae South Korea Consumer Discretionary 3,127 Taiwan Semiconductor Taiwan Information Technology 3,048 KT Corp South Korea Telecommunication Services 2,988 Global Bio-Chem China Consumer Staples 2,961 Resorts World Malaysia Consumer Discretionary 2,926 Samsung SDI South Korea Information Technology 2,868 Realtek Semiconductor Taiwan Information Technology 2,857 Fubon Financial Taiwan Financials and Property 2,821 Cathay Pacific Airways Hong Kong Industrials and Transport 2,708 Venture Corp Singapore Information Technology 2,489 65,845 ==== Total Investments 133,792 ==== Top 20 as a percentage of total investments 49.2% - ENDS - For further information contact:- Michael Watt, Director and Manager Iain Dale, Chairman Tel: 020 7818 4336 David Hardy Binns & Co. PR Tel: 020 7786 9600 Stephen Westwood Head of Investment Trusts Henderson Global Investors Telephone: 020 7818 5517 Stephen Phillips Investor Relations Manager Henderson Global Investors Telephone: 020 7818 6417 or Vicki Staveacre Henderson Press Office Telephone: 020 7818 4222 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Schroder Asian Total Return Investment Company (ATR)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today