Final Results

RNS Number : 4252V

Shires Income PLC

29 May 2008

 



News Release

29 May 2008

Shires Income plc

Preliminary Results for the year ended 31 March 2008

Shires Income plc aims to provide for shareholders a high level of income, together with growth of both income and capital from a portfolio substantially invested in UK Equities.

Financial Highlights

	31 March 2008	31 March 2007	% change
Total investments	£95,296,000	£138,572,000	(31.2)
Shareholders' funds	£74,687,000	£99,820,000	(25.2)
Market capitalisation	£65,334,676	£92,285,230	(29.2)
Net asset value per share	251.49p	336.12p	(25.2)
Share price (mid market)	220.00p	310.75p	(29.2)
Discount to adjusted NAV{A}	8.5%	4.5%	-
Gearing	27.5%	38.8%	-
Total expense ratio	1.1%	0.9%	-
Dividends and earnings
Revenue return per share{B}	20.29p	20.16p	0.7
Dividends per share{C}	19.75p	19.25p	2.6
Dividend cover	1.03	1.05
Revenue reserves{D}	£7,999,000	£7,690,000

{A}     Based on IFRS NAV above reduced by dividend adjustment of 10.95p (2007 - 10.45p).

{B}     Measures the revenue earnings for the year divided by the weighted average number of Ordinary shares in issue (see Income Statement).

{C}     The figures for dividends per share reflect the years in which they were earned

{D}     The revenue reserve figure does not take account of the third or final interim dividend amounting to £3,252,000 (2007 - £3,103,000).

·       Subject to shareholder approval, the final dividend will be 6.55p (2007- 6.05p) payable on 31 July 2008 to shareholders on the register at close of business on 4 July 2008. This brings total dividend payable in relation to the financial year 2007/2008 to 19.75p, an increase of 2.6%.

 

·       Based upon the share price of 220.0p at 31 March 2008, the dividend yield was 9.0%, compared to 3.8% for the FTSE All-Share Index, the Company’s benchmark.

 

·       Predominantly due to the poor performance of financials and the smaller companies sector, specifically the holding in Shires Smaller Companies plc, the total return on net assets was
-20.4%, which compared with a return of -7.7% on the Company’s benchmark.

 

·       As a result of the widening in the discount to 8.5% at 31 March 2008 compared to 4.5% a year earlier, the total return to a shareholder was -24.4%.

 

·       Gearing fell in the year from 38.8% to 27.5% as a result of the Manager not wishing to be overly geared in a volatile market.

 

·       During the rest of this year, stock markets are likely to remain volatile but that should generate opportunities for long term investors. The Manager intends taking advantage of such conditions to invest selectively in companies of suitable quality which are undervalued and offer sustainable dividend yields.

For further information please contact:

Kenneth Harper

Aberdeen Asset Managers Limited

0131 528 4000

Shires Income plc

Annual Report 31 March 2008

Chairman's Statement

Highlights

After four years of growth your Company declined in value in the year to 31 March 2008. While the Company underperformed in the year, as explained below, over a five year period the total return has been slightly ahead of the FTSE All-Share Index, the Company's benchmark.

I am pleased to say that the Company is in a position to increase its dividend. If approved by Shareholders, a final dividend of 6.55p will be paid on 31 July 2008 to Shareholders on the register at the close of business on 4 July 2008. This will result in the dividend in respect of the financial year to 31 March 2008 totalling 19.75p, an increase of 2.6% over that for the previous year. This dividend represents a yield of 9% on the share price at 31 March 2008, significantly higher than the yield on the FTSE All-Share Index at the same date of 3.8% and on that of the FTSE 350 High Yield Index of 5.3%.

Investment Returns

Against a background of increasing stockmarket volatility, primarily caused by the credit crisis emanating from the Unites States, your Company, after four years of continuous growth, declined in value. The Company's total return on net assets was -20.4% in the year to 31 March 2008 compared to the FTSE All-Share Index total return of -7.7%. This underperformance was mainly due to two factors:

• The portfolio has a large percentage invested in financials, both in equities and fixed interest securities. While the holdings in financials are critical for the income generation of the Company, these stocks, particularly banks, have been badly affected by the credit crisis. This is demonstrated by the recent rights issues announced by The Royal Bank of Scotland and HBOS to strengthen their capital base.

• The smaller companies sector has also been badly hit in the recent volatility, with the FTSE Small Cap Index (excluding Investment Companies) falling 29.0% on a total return basis in the year to 31 March 2008. This has affected the price of smaller companies securities held in the portfolio, particularly Shires Smaller Companies plc which is one of the largest holdings, the discount on the net assets of which widened to 18.0% over the year. It should be noted however that Shires Smaller Companies plc continues to provide a high and increasing level of income for the Company.

The rating of the Company's shares in the stock market dropped in the year with the discount standing at 8.5% at 31 March 2008 compared to 4.5% a year earlier. As a result the share price total return was -24.4% in the year. It should be noted however that over five years the Company has outperformed the benchmark both in relation to NAV and share price total return.

Earnings and Dividends

The revenue return per share was 20.29p for the year to 31 March 2008. Dividends paid in the financial year amounted to 19.25p. This comprises the third interim dividend and final dividend of the 2006/07 financial year totalling 10.45p, and the first and second interim dividends of the 2007/08 financial year totalling 8.80p. The third interim dividend for 2007/08 paid on 30 April 2008 and the proposed final dividend for the 2007/08 financial year payable on 31 July 2008 will be included in the financial statements for the year ended 31 March 2009.

Portfolio Profile

Total gearing decreased in the year from 38.8% to 27.5% with equity gearing also falling from 8.8% to no equity gearing at the end of the year. The reduction in gearing was a result of the Manager not wishing to be significantly geared in the equity market in such turbulent times. All the gearing is invested in high yielding fixed interest securities which contribute a high proportion of the income distributed to Shareholders.

The gearing structure of the Company also changed during the year with the repayment of the first tranche of the 5% Index-linked Debenture Stock on 6 March 2008. This tranche was replaced by a £10 million revolving credit facility which should give the Manager cheaper, more flexible gearing.

Outlook

Investment markets are currently dominated by the global credit crunch, its impact on financial institutions and possible consequences for the wider economy. In the current year we expect to see further intervention by Central Banks to resolve the problems by reducing interest rates and improving liquidity.

In the UK, the Bank of England has recently reduced interest rates to 5% but continues to make clear it is concerned about inflation. Inflationary pressures have been building up due to a mixture of higher energy, food and metals prices. As global growth slows, inflation should begin to moderate. Although the UK economy is slowing down, this slow down is concentrated in the consumer related areas such as housing and retail where there are well recognised excesses which are now being addressed.  

During the rest of this year, stock markets are likely to remain volatile but that should generate opportunities for long term investors. The Manager intend taking advantage of such conditions to invest selectively in companies of suitable quality which are undervalued and offer sustainable dividend yields.

In relation to the dividend it is expected that the dividend for the forthcoming year should be maintained, subject to any unforeseen circumstances. This should not be taken as a forecast of profits. However, given recent well publicised dividend cuts by major financial institutions, the Board will keep this matter under close review in the forthcoming year. It should be noted however, that the Company has revenue reserves of 16.0p per share which it can utilise should the need arise.

AIC/JP Morgan Claverhouse VAT Test Case

As referred to in the Interim Report, the decision made by the European Court of Justice ('ECJ') on the case brought by the AIC and JP Morgan Claverhouse against Her Majesty's Revenue and Customs ('HMRC') will result in the Company not being subject to VAT on its management fees going forward. In addition the Company should be able to recover at least some of the VAT suffered in the past. The Board is currently in discussion with the Manager on this issue, and a number of legal and procedural matters still require to be resolved. In addition a recent decision by the House of Lords to allow potentially such claims to go back to 1990 has further added to the complexity of calculating any repayment due. Given these uncertainties no asset is yet being recognised in the financial statements.

Investment Manager

As explained in the Interim Report, Aberdeen acquired Glasgow Investment Managers Limited on 24 August 2007. On 14 April 2008 the Company announced that Susan Anderson and Ed Beal had been appointed as co-managers of the Company. Susan previously worked with GIM as part of the Company's investment management team and will provide continuity in the management of the Company. Ed Beal is an investment manager in Aberdeen's Pan European equity team, joining the Aberdeen group in 2000, and has considerable experience in managing investment trust portfolios.

As part of the transition to Aberdeen the management contract and the secretarial function of the Company were formally transferred to the Aberdeen group on 16 May 2008. 

Board 

I am very sorry to say that Mrs Davidson, as a result of ill health, is not offering herself for re-election at the forthcoming AGM on 4 July 2008 and as such will retire from the Board on this date. Mrs Davidson has been a valuable member during her time on the Board and her contribution was particularly helpful in relation to GIM Holdings, the parent company of Glasgow Investment Managers Limited, on the Board of which she sat. Her input will be greatly missed, and we wish her a speedy recovery.

In addition I would like to take this opportunity to inform Shareholders of my intention to retire from the Board at the end of this calendar year. My time at Shires Income plc has been a challenging but enjoyable experience and I would like to thank Shareholders and colleagues for the support I have received throughout my time as a Director and Chairman of the Company. The Board has agreed that my replacement as Chairman will be Mr Anthony Davidson who has contributed significantly to the deliberations of the Board in the short time he has been a Director and I have no doubt he will prove to be an excellent Chairman. 

Given my impending retirement, the Nominations Committee met several times throughout the year and, with the help of an independent recruitment company, recommended Mr Andrew Robson's appointment to the Board effective from 16 May 2008. Mr Robson has considerable experience in both the investment industry and elsewhere and will widen the skills base of the Board as a whole. The Board recommends the election of Mr Robson at the forthcoming Annual General Meeting.

J. Martin Haldane

Chairman

28 May 2008

Shires Income Annual Report 2008

Investment Managers Review

Background

The year to 31 March 2008 covered a period of sharp correction in equity and bond markets as the problems in the US sub prime mortgage market spread out to affect the global banking industry. In the twelve months to 31 March, the FTSE All-Share Index declined by 7.7 % in total return terms. The outcome for medium and smaller sized companies was worse because they are regarded as higher risk and during the same period, their total returns were -12.3% and -29.0% respectively. The downward trends were repeated in other global markets with the US and Japan declining. Only the fast growing developing markets, such as China and India, escaped. For UK investors the best returns during the year came from cash at 5.8% and Government bonds which returned 7.6%. The problems in credit markets affected the valuation of UK corporate bonds which made a total return of -3.8%.

At a sector level, the strength in energy and commodity prices was reflected in the outperformance of sectors such as Mining, Industrial Metals and Oil & Gas. Merger and acquisition activity also played a part in the outperformance of these sectors with BHP announcing a bid for Rio Tinto. The weakest areas of performance were those exposed to consumer spending including Leisure and General Retailers and the Banks which were hit by write downs and provisions on mortgage related securities and debts.

Portfolio Strategy

During the year, equity investments were reduced from 108.8% to 94.0% of net assets through net sales of £16m. The equity sales brought the overall gearing of the trust down from 38.8% to 27.5%, a more cautious level of gearing given the volatility in investment markets. As a result of the change in equity exposure, the proportion invested in preference shares increased from 30.0% to 33.5% of net assets.

Revenue Account

The table across sets out the main sources of the Company's income for the last five years

	2008 %	2007 %	2006 %	2005 %	2004 %
Ordinary dividends	47.5	50.6*	44.3	45.5	51.5
Preference dividends	29.0	28.6	25.6	26.9	16.4
Shires Smaller Companies plc	7.4	7.2	11.2	11.4	11.7
Fixed interest and bank interest	1.1	1.6	1.9	1.5	3.0
Preference share switching	0.0	0.0	0.0	6.5	6.8
Dealing subsidiary	(7.0)	3.1	2.2	(1.5)	7.1
Traded option premiums	22.0	8.9	14.8	9.7	3.5
	100.0	100.0	100.0	100.0	100.0
Total income (£'000s)	8,117	8,062	7,741	7,611	7,392

    * includes special dividends: 2007 - 3.5% of total income.

The Revenue Account table identifies the sources of the trust's annual income and the percentage generated by each area. In 2008, equities continued to be the main source of income, followed by preference shares. Together with dividends from the holding in Shires Smaller Companies, these investments generated 83.9% of the total revenue. In the previous year, these same sources of revenue made up 86.4% of the annual income. The balance of 16.1% came from traded options premiums, fixed interest and bank interest offset by the loss in the dealing subsidiary. As forecast last year, a higher proportion of income was generated from writing traded options.

The total income generated by the portfolio increased from £8.06m to £8.12m during the year. 

Equities

Over the year to end March, the equity portfolio remained overweight in medium and smaller companies and underweight in FTSE 100 stocks. There was little change to sector weightings with the portfolio continuing to be overweight in Financials and Industrials and underweight in Oil & Gas. The exposure to Basic Materials was reduced with sales of mining related stocks. The weighting in Telecoms was increased and a new position established in the Health Care sector. Consumer services moved from a modest underweight to slightly overweight position. It was a healthy year for takeover activity; the holding in Scottish & Newcastle was acquired by a consortium of Carlsberg and Heineken in a £7.8bn deal. After Rio Tinto received a bid approach from BHP Billiton, that holding was reduced. The holding in EMI was sold following a bid from the private equity group Terra Firma.

During the year a number of holdings were sold to achieve the desired reduction in gearing and these included Babcock International, BBA Aviation, Bradford and Bingley, Clapham House, Griffin Mining, HBOS, Provident Financial, Tate & Lyle and Weir Group. The holding in Mackintosh High Income fund was also reduced.

Some of these holdings were low yielding shares and the decline in the stock market increased the number of higher income opportunities. A new holding was established in AstraZeneca, the pharmaceutical, biologics and vaccines company. After recent underperformance, the shares were on an attractive valuation and had a yield of around 5%. In the Construction & Building Materials sector two new holdings were added in Persimmon, the national house builder and Wolseley, an international distributor of building and plumbing supplies. Both companies have suffered a derating due to concerns about interest rates and housing demand. At current levels, these companies are undervalued and offer an above average level of yield. The portfolio maintained a low exposure to banks throughout the year and sold its holdings in Bradford & Bingley and switched HBOS into a new holding in Barclays Bank. Finally, a holding in BT was added to the Telecoms exposure which offers reliable and growing dividends backed by utility style earnings.

Preference Shares 

Preference shares are an important contributor of income to the Company and in 2008 generated 29% of the total revenue. However, last year, the capital performance was adversely affected by the problems in financial markets. The UK preference share market tends to be dominated by issues from financials such as Banks and Insurance companies. As the preference share market is also quite small, the limited liquidity exacerbated the sell off. During the year under review, the preference share holdings were weak performers because of their exposure to financials and consequently, the value of the preference share portfolio fell from £30.0m to £25.0m. Despite the fall in value, the proportion of revenue derived from preference shares was similar to the previous year.

During the year, the holdings in Aviva 8.75% and National Westminster 9% preference shares were sold and replaced with two new investments in Ecclesiastical Insurance 8.625% and REA 9% preference shares. Since the year end, conditions in the preference share market have improved and should continue to follow the recovery in the financial sectors.

Investment Performance Analysis 

Equities (inc Shires Smaller Companies)	-14.0
Fixed income portfolio, total return	-5.5
Unlisted investments	0.7
Option writing	1.7
Cash	0.1
Index-Linked Debenture Stock	-2.3
Other financing costs and expenses	-1.1
	_________
Total return on Net Assets	-20.4
	_________

In the year to end March 2008, the total return was -20.4% versus the benchmark return of -7.7% on the FTSE All-Share index. The analysis demonstrates that the main reason for the weak return was the equity portfolio. Equity investments were overweight in smaller companies and during the year the FTSE Small cap index return of -29% was significantly below that of the benchmark. The Company holds most of its smaller company exposure through a holding in Shires Smaller Companies and the discount on that trust, and indeed most small cap investment trusts, widened sharply as investors switched into lower risk assets. The other drag on performance came from preference shares. The shares are an important source of income but the preference share sector is dominated by financials and their prices suffered disproportionately as markets declined. 

Prospects

Over the last few months, Central Banks have made concerted efforts to improve liquidity and bring stability to global credit markets. In the UK, the Bank of England remains concerned about the level of inflation and may not have much scope for further cuts in interest rates. During the recent results season, banks and other financials made significant write downs and provisions and the rights issues from Royal Bank of Scotland and HBOS are a sign that capital ratios will be rebuilt in the banking sector. Although rights issues may be unwelcome news for equity investors, their appearance should, along with the Bank of England's special liquidity scheme, restore stability and confidence to credit markets. Apart from financials, most UK companies have continued to deliver growing dividends and profits even in a slowing economic environment. The investment conditions favour careful stock selection with the focus on aspects such as strong cash flow and asset backing. The stock market is likely to remain volatile but there are undervalued opportunities and the Manager will seek to broaden the number of companies and sectors in the portfolio as conditions allow.

Consolidated Income Statement

	Year ended			Year ended
	31 March 2008			31 March 2007
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments at fair value	-	(23,445)	(23,445)	-	3,843	3,843
Investment income
Dividend income	6,106	-	6,106	6,962	-	6,962
Interest income from investments	728	(265)	463	115	(96)	19
Traded option premiums	1,785	-	1,785	715	-	715
Deposit interest	92	-	92	16	-	16
Other income	2	-	2	-	-	-
Other revenue of Financial Assets held for trading	-	-	-	4	-	4
(Loss)/gain of dealing subsidiary	(595)	-	(595)	250	-	250
	________	________	________	_______	________	________
	8,118	(23,710)	(15,592)	8,062	3,747	11,809
Expenses	________	________	________	_______	________	________
Investment management fee	(253)	(253)	(506)	(268)	(268)	(536)
Other administrative expenses	(410)	-	(410)	(340)	-	(340)
Finance costs of borrowings	(1,429)	(1,479)	(2,908)	(1,467)	(1,518)	(2,985)
	________	________	________	_______	________	________
	(2,092)	(1,732)	(3,824)	(2,075)	(1,786)	(3,861)
	________	________	________	_______	________	________
Profit before tax	6,026	(25,442)	(19,416)	5,987	1,961	7,948
Tax expense	-	-	-	-	-	-
	________	________	________	_______	________	________
Profit/(loss) attributable to equity holders of the Company	6,026	(25,442)	(19,416)	5,987	1,961	7,948
	________	________	________	_______	________	________
Earnings/(loss) per Ordinary share (pence)	20.29	(85.67)	(65.38)	20.16	6.61	26.77
	________	________	________	_______	________	________

The total column of this statement represents the Group's Income Statement, prepared in accordance with IFRS. The supplementary revenue return and capital columns are both prepared under guidance published by the Association of Investment Companies.

All items shown in the above statement derive from continuing operations.

All income is attributable to the equity holders of the parent company. There are no minority interests.

The following table shows the revenue for each year under IFRS less the ordinary dividends declared in respect of the financial year to which they relate. This table is for information purposes only and does not form part of the above Consolidated Income Statement.

	Year to	Year to
	31 March  2008{A}	31March 2007{B}
	£'000	£'000
Revenue	6,026	5,987
Dividends declared	(5,865)	(5,713)
	________	________
	161	274
	________	________

{A}    Dividends declared relates to first three interim dividends (each 4.40p) and the final dividend (6.55p) declared in respect of financial year 2007/08. 

{B}    Dividends declared relates to first three interim dividends (each 4.40p) and the final dividend (6.05p) declared in respect of financial year 2006/07. 

Balance Sheets

as at 31 March 2008

	Group		Company
	As at 31 March 2008 £'000	As at 31 March 2007 £'000	As at 31 March 2008 £'000	As at 31 March 2007 £'000
Non-current assets
Ordinary shares	67,734	101,458	67,734	101,458
Convertibles	1,434	2,677	1,434	2,677
Other fixed interest	25,037	29,974	25,037	29,974
Unlisted investments	1,091	4,463	1,091	4,463
	__________	__________	__________	__________
Securities at fair value	95,296	138,572	95,296	138,572
	__________	__________	__________	__________
Current assets
Trade and other receivables	144	904	479	1,255
Accrued income and prepayments	2,082	2,038	2,082	2,038
Financial assets of dealing subsidiary	452	1,047	-	-
Cash and cash equivalents	3,283	30	3,283	30
	__________	__________	__________	__________
	5,961	4,019	5,844	3,323
	__________	__________	__________	__________
Total assets	101,257	142,591	101,140	141,895
Current liabilities
Trade and other payables	(337)	(456)	(347)	(466)
Short-term borrowings	(7,200)	(14,856)	(7,200)	(14,856)
Index-Linked Debenture stock	(9,517)	(9,153)	(9,517)	(9,153)
	__________	__________	__________	__________
	(17,054)	(24,465)	(17,064)	(24,475)
	__________	__________	__________	__________
Non-current liabilities
Index-Linked Debenture stock	(9,516)	(18,306)	(9,516)	(18,306)
	__________	__________	__________	__________
Net assets	74,687	99,820	74,560	99,114
	__________	__________	__________	__________
Issued capital and reserves attributable to equity holders of the parent
Called up share capital	14,899	14,899	14,899	14,899
Share premium account	18,887	18,937	18,887	18,937
Capital reserve	32,902	58,294	32,893	58,285
Revenue reserve	7,999	7,690	7,881	6,993
	__________	__________	__________	__________
	74,687	99,820	74,560	99,114
	__________	__________	__________	__________
Net asset value per Ordinary share (pence):	251.49	336.12	251.06	333.74
	__________	__________	__________	__________

Consolidated Statement of Changes in Equity

Year ended 31 March 2008
		Share		Retained
	Share	Premium		Revenue
	Capital	Account	Capital	Reserve	Total
	£'000	£'000	reserve	£'000	£'000
As at 31 March 2007 (A)	14,899	18,937	58,294	7,690	99,820
Revenue profit for the year	-	-	-	6,026	6,026
Capital losses for the year	-	(50)	(25,392)	-	(25,442)
Equity dividends	-	-	-	(5,717)	(5,717)
	_________	_________	_________	_________	_________
As at 31 March 2008	14,899	18,887	32,902	7,999	74,687
	_________	_________	_________	_________	_________
Company Statement of Changes in Equity
Year ended 31 March 2008
		Share		Retained
	Share	Premium	Capital	Revenue
	Capital	Account	reserve	Reserve	Total
	£'000	£'000	£'000	£'000	£'000
As at 31 March 2007 (A)	14,899	18,937	58,285	6,993	99,114
Revenue profit for the year	-	-	-	6,605	6,605
Capital losses for the year	-	(50)	(25,392)	-	(25,442)
Equity dividends	-	-	-	(5,717)	(5,717)
	_________	_________	_________	_________	_________
As at 31 March 2008	14,899	18,887	32,893	7,881	74,560
	_________	_________	_________	_________	_________

(A) Prior year comparitives have been reclassified to conform with the current year's presentation. 

The revenue reserve represents the amount of the Company's reserves distributable by way of dividend.  

The accompanying notes are an integral part of these financial statements.  

Group and Company Cash Flow Statement

for the year ended 31 March 2008

	Year ended		Year ended
	31 March 2008		31 March 2007
	£'000	£'000	£'000	£'000
Cash flows from operating activities
Investment income received		6,768		6,689
Deposit interest received		81		19
Investment management fee paid		(551)		(534)
Net purchases of dealing subsidiary		-		(296)
Other cash receipts		1,616		884
Other cash expenses		(426)		(392)
		__________		__________
Cash generated from operations		7,488		6,370
Interest paid		(1,850)		(2,015)
		__________		__________
Net cash inflows from operating activities		5,638		4,355
Cash flows from investing activities		__________		__________
Purchases of investments	(51,284)		(55,781)
Sales of investments	71,789		51,272
Sales of hedge instruments	-		83
Repayment of Index-Linked Debenture Stock	(9,517)
	__________		__________
Net cash inflow/(outflow) from investing activities		10,988		(4,426)
Cash flows from financing activities		__________		__________
Proceeds from share issues	-		63
Equity dividends paid	(5,717)		(5,715)
	__________		__________
Net cash outflow from financing activities		(5,717)		(5,652)
		__________		__________
Net increase/(decrease) in cash and cash equivalents		10,909		(5,723)
Cash and cash equivalents at start of period		(14,826)		(9,103)
		__________		__________
Cash and cash equivalents at end of period		(3,917)		(14,826)
		__________		__________
Cash and cash equivalents comprise:
Cash and cash equivalents		3,283		30
Short-term borrowings		(7,200)		(14,856)
		__________		__________
		(3,917)		(14,826)
		__________		__________

1.       The Directors recommend that a final dividend of 6.55p per Ordinary share be paid, making a total of 19.75p for the year ended 31 March 2008 (2007 – 19.25p). The final dividend will be paid on 31 July 2008 to Shareholders on the register at 4 July 2008. The ex-dividend date is 2 July 2008.

 

2.      The income statement, balance sheet, statement of changes in equity and the cashflow statement set out above do not represent full accounts in accordance with Section 240 of the Companies Act 1985. The financial information for the year ended 31 March 2007 has been extracted from the Annual Report and Accounts of the Company which have been filed with the Registrar of Companies. The auditors’ report on those accounts was unqualified. We expect to deliver statutory accounts for the year ended 31 March 2008 to the Registrar of Companies following the Company’s Annual General Meeting which will be held at Trinity House, London, EC3N 4DH on 4 July 2008 at 12 noon.

 

3.      The Annual Report and Accounts will be posted to shareholders at the start of June 2008 and copies will be available 
         from the registered office of the investment manager.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.

 

END

 

 

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