Final Results
Templeton Emerging Markets IT PLC
01 July 2003
TEMPLETON EMERGING MARKETS INVESTMENT TRUST PLC
("TEMIT") ("the Company")
YEAR TO 30 APRIL 2003
The Company today announced its annual results for the year to 30 April 2003.
CHAIRMAN'S STATEMENT
At 30 April 2003, your Company had total assets of £595.49 million, compared
with £666.22 million at 30 April 2002.
At the year-end, 99.32% of the Company's total assets were invested in equities,
with the remaining 0.68% being held in liquid assets. The general policy of the
Manager is to be fully invested.
Despite a decrease of 10.5% over the year in net asset value per ordinary share
the Company outperformed its benchmark, the MSCI Emerging Markets Free Index,
which on a total return basis fell 21.6%, while the S&P/IFCI Composite Index
decreased by 20.8%. Undiluted net asset value per share at year end was 130.82
pence. The share price at 30 April 2003 was 107.25 pence, compared with 125.00
pence at the beginning of the fiscal year, a decrease of 14.2%. The Manager's
Report and Portfolio Review give a detailed analysis of the Fund's performance
over the year.
The onset of war in Iraq, uncertainty in North Korea and a deterioration of
corporate earnings characterised the global macroeconomic environment during the
past year. These factors combined with mistrust of the U.S. accounting system
and corporate governance, substantially undermined confidence. At the same time
many investors found less to worry about in emerging markets where certain
countries' credit ratings rose and many stocks traded at attractive valuations.
A number of emerging market economies posted encouraging growth rates, some more
than doubling those recorded in developed markets. Additionally, political
changes that occurred in some emerging markets during the past year may help
lead to more efficient and strong central governments, which could in turn
attract foreign investment. The emerging market asset class overall continued to
benefit from low global interest rates and access to international capital
markets.
Last year, the Directors renewed authority to buy back shares, and during the
year 388,215 shares were bought back at a cost of £442,565.
The Board of Directors has proposed a cash dividend of 1.25 pence per Ordinary
Share. The dividend will be paid on 19 September 2003 to Shareholders on the
register at the close of business on 22 August 2003, subject to the approval of
Shareholders at the Annual General Meeting, which will be held on 18 September
2003.
The portfolio is managed using the value style of investing which lends itself
to investing in Emerging Markets. This requires a detailed research of stocks
and only those trading at less than their assessed value are purchased. The
current state of many of the emerging markets provides that opportunity. Since
inception, the net asset value of TEMIT has risen by 296.7% in sterling terms
compared with a comparable rise of 140.9% in the MSCI Emerging Markets Free
Index.
On behalf of the Company the Nomination and Remuneration Committee has made
representations to the FSA, as explained in the Corporate Governance Statement
and will monitor further developments closely.
The Honourable Nicholas F. Brady
1 July 2003
Indices above are shown on a total return basis in GBP. Sources: Franklin
Templeton Investments and Standard & Poor's Micropal.
MANAGER'S REPORT & PORTFOLIO REVIEW
DR J B MARK MOBIUS 30 APRIL 2003
This is the Manager's Report & Portfolio Review for the Templeton Emerging
Markets Investment Trust PLC for the year ended 30 April 2003.
As outlined in the Chairman's Statement the Company has performed satisfactorily
during the year.
Performance Attribution Explanation
Since inception, the Company has outperformed the MSCI Emerging Markets Free
index. Over the period, the Company returned 296.7%, compared to MSCI's 140.9%
return while during the period ended April 2003, the Company also substantially
outperformed the MSCI Emerging Markets Free and IFCI Emerging Markets indices.
The Company decreased by 10.5%, while the MSCI and IFCI indices declined -21.6%
and -20.8%. The Company's superior performance resulted from its underweight
positions in Taiwan and Korea. Overweight positions in Thailand and Hungary led
to further gains. Good stock selection in Brazil, China, Taiwan and Korea
further supported the Company's performance. Going forward, we believe that our
disciplined, value-orientated approach will continue to generate superior
returns for our shareholders.
Difference between NAV performance and benchmark performance
Country Asset Stock Selection Currency Effect Total
Allocation
% % % %
Argentina 1.2 -1.5 0.1 -0.2
Austria 0.4 0.3 0.0 0.7
Brazil 0.0 2.4 -0.6 1.8
Chile -0.3 0.0 0.0 -0.3
China -0.1 2.0 -0.2 1.7
Colombia 0.0 0.0 0.0 0.0
Croatia 0.2 -0.1 0.0 0.1
Czech Republic 0.0 0.1 0.0 0.1
Egypt 0.1 0.1 0.0 0.2
Estonia 0.1 -0.1 0.0 0.0
Greece 0.1 0.0 0.0 0.1
Hong Kong -0.4 0.7 -0.1 0.2
Hungary 0.8 0.1 0.0 0.9
India 0.0 -0.2 0.0 -0.2
Indonesia 0.2 -0.8 0.0 -0.6
Israel -0.7 -0.2 0.0 -0.9
Jordan 0.0 0.0 0.0 0.0
Korea 0.5 1.5 0.0 2.0
Malaysia 0.2 0.0 0.0 0.2
Mexico 0.1 0.2 0.0 0.3
Morocco -0.1 0.0 0.0 -0.1
Pakistan -0.2 0.0 0.0 -0.2
Peru -0.1 0.0 0.0 -0.1
Philippines 0.0 0.4 0.0 0.4
Poland 0.0 0.2 0.0 0.2
Portugal 0.1 0.1 0.0 0.2
Russia -0.2 -0.1 0.0 -0.3
Singapore -0.1 0.3 0.0 0.2
South Africa -0.1 0.1 0.0 0.0
Taiwan 1.3 0.6 -0.1 1.8
Thailand 0.6 0.7 -0.1 1.2
Turkey -0.1 1.2 -0.3 0.8
Venezuela 0.0 0.0 0.0 0.0
Cash 0.9
Effect of Buy-Ins 0.0
Total 11.10
Portfolio Changes
During the period, reductions were made in South Africa since some stocks had
met their price targets and in order to reduce the Company's exposure in that
country. These sales included Goldfields, Tiger Brands, Liberty Group and
Remgro. Additionally, we repositioned our investments in Asia, increasing our
holdings in Korea, India and Thailand, while reducing our exposure to Indonesia,
Hong Kong and Malaysia. In Latin America, the Company's exposure to Brazil
increased as the Company made investments in selective stocks, which were
trading at appealing valuations. Such trading activity saw the Company's
turnover rate return to historical levels.
The Company also increased its exposure to Central and Eastern Europe as the
region continues to benefit from the positive developments evolving from
eventual accession into the E.U. In Hungary, it made purchases in Gedeon
Richter, the country's largest pharmaceutical producer. In addition, we invested
in Greece's Coca-Cola Hellenic Bottling, Coca-Cola's second largest bottler in
the world, and Croatia's Pliva, the largest pharmaceutical company in Central
and Eastern Europe. The Company also made investments in the largest industrial
company in Austria and one of the leading oil and gas groups in the region. In
Russia, the Company undertook selective sales as stock prices reached our sell
limits. The uncertainty in the Middle East, earlier in the period, provided the
Company with an attractive opportunity to add exposure to Israel via investments
in Check Point Software, the world's leading provider of firewalls and security
software and selective stocks in Turkey.
As at the end of April, the largest portion of the Trust's holdings could be
found in South Korea, followed by China, Brazil and Thailand. The Company's top
three sectors were banks, oil & gas refining & marketing and electric utilities.
The top 10 holdings included China Petroleum & Chemical Corp. (China), Unibanco
(Brazil), OMV (Austria), Gedeon Richter (Hungary), Banco Bradesco (Brazil), Siam
Commercial Bank (Thailand), Tupras (Turkey), Akbank (Turkey), KT Corp. (Korea)
and MOL (Hungary).
Economic Conditions & Political Climate
Asia
The end of the war in Iraq was overshadowed by concerns over the impact of the
severe acute respiratory syndrome (SARS) virus. The origination of SARS in Asia
saw markets in the region worst hit, with retail, tourism and airline stocks
greatly impacted. Economically, the emergence of SARS has led to lower growth
forecasts and the implementation of relief packages in countries such as Hong
Kong and Singapore. The World Bank lowered its 2003 growth forecast for East
Asia by 1% and for the region on the whole, by 0.5%. While SARS is expected to
impact corporate profits and sales over the next few months, it is important to
note that there have been no significant long-term changes in company
fundamentals. Over the long-term we expect most companies to emerge relatively
unscathed from this event and as such we believe that this is a good time to
search for stocks, which may now be trading at attractive valuations as a result
of panic selling as East Asia is still expected to be the fastest growing region
in the world, clearly reflecting its strengthening economies.
In China, Vice President Hu Jintao succeeded President Jiang Zemin as the head
of Communist Party. Hu stressed that he would concentrate on the economic
development of the country, although with the presence of SARS, priority has
also been placed on containing the virus. As such, Vice Premier Wu Yi was
appointed China's new health minister after Zhang Wenkang and Beijing's mayor,
Meng Xuenong, were dismissed for their part in the cover-up of the spread of the
SARS virus. As such we expect greater measures to be employed to combat the
disease.
In Korea, presidential elections took place in December with Millennium
Democratic party candidate, Roh Moo-hyun declaring victory over Lee Hoi-chang of
the opposition Grand National Party. President Roh took office in February 2003
and has been embarking on efforts to reform the chaebol conglomerates that have
dominated the Korean business scene and are accused of many corporate governance
violations. Inter-Korean talks were also held in Pyongyang to help alleviate
concerns over North Korea's nuclear weapons program.
Latin America
As a region, is already beginning to recover from the aftermath of the events in
Argentina and Brazil. The conclusion of elections ended months of political
uncertainty in Brazil. We expect President Lula's administration to continue its
efforts to boost the country's recovery and implement key reforms, which could
help improve the country's fiscal position.
In Argentina, focus is still on obtaining support from the International
Monetary Fund, as a result of which, we expect the country to work towards the
implementation of key reforms and improving the country's fiscal position.
Presidential elections took place in Argentina during April 2003, with a second
round between former President Carlos Menem and provincial governor Nestor
Kirchner expected next month. In Mexico, President Fox named Economy Minister
Luis Ernesto Derbez as the new Foreign Minister after the resignation of Jorge
Castaneda. Derbez is known for his negotiations with NAFTA and is expected to
revive talks with the U.S. on immigration reforms. Governor Fernando Clariond, a
member of the Partido Accion Nacional (PAN), took over as the new Economy
Minister.
Eastern & Southern Europe
After gaining formal E.U. approval, the ten Eastern and Central European
countries are expected to hold referendums this year to ratify the agreement for
accession in 2004. So far this year, Malta, Slovenia and Hungary have held and
passed the referendum. Public opinion in most states is positive, thus we expect
all states to vote in favour of E.U. accession. This should allow their
economies to continue to work towards E.U. goals leading to greater foreign
direct investment (FDI) inflows as well as the implementation of key economic
and social reforms.
In Southern Europe, Turkish markets experienced volatility throughout the period
as a result of issues in the neighbouring Middle East. However, the end of the
war in Iraq reduced uncertainty in the region, thereby allowing regional stock
markets to experience gains. As a result, Turkey's financial markets, as
measured by the MSCI Turkey index surged 32.5% in US dollar terms in April 2003.
The US$1 billion grant from the U.S., the completion of the IMF review in April
and assurances from the U.S. that Kurdish forces would be removed from Kirkuk
also provided supported investor sentiment. With the re-election of Justice &
Development Party (AKP) and leader Tayyip Erdogan as party chairman, political
continuity should result in greater stability going forward.
Outlook
The conclusion of the war in Iraq provided many emerging markets with
much-needed relief in April. We expect markets to continue to benefit as
investors accumulate stocks, which have moved down to attractive levels as a
result of the uncertainty in the Middle East. While Asia is still facing some
pressure due to SARS and tension in the Korean peninsula, we believe that stocks
have been oversold due to poor market sentiment rather than weak fundamentals.
As such, we will use this opportunity to look for companies that are trading
below their intrinsic value, allowing us to build positions cheaply.
Manager
Templeton Asset Management Ltd., part of Franklin Templeton Investments (with
over US$267.4 billion in assets under management as of 30 April 2003), has over
16 years of investment experience in emerging markets and approximately US$6.9
billion (as of 30 April 2003) in assets under management. TAML currently has 24
portfolio managers/analysts located in 11 emerging markets, Moscow (Russia),
Warsaw (Poland), Istanbul (Turkey), Johannesburg (South Africa), Hong Kong
(China), Singapore, Shanghai (China), Seoul (Korea), Mumbai (India), Rio de
Janeiro (Brazil), and Buenos Aires (Argentina). Moreover, TAML's Emerging
Markets Team receives support from approximately 6,500 employees of Franklin
Templeton, its ultimate parent company.
Thank you for your continued interest and support.
J Mark Mobius, Ph.D.
1 July 2003
PORTFOLIO ANALYSIS by geography
Geographical analysis
(by country of incorporation)
As at 30 April 2003
Country Cost Market Value
£'000 £'000
Korea (South) 83,716 76,716
China+ 69,895 71,835
Brazil* 59,315 66,143
Thailand 36,968 48,046
Hungary 29,520 37,770
Turkey 46,072 37,745
Mexico* 36,463 35,102
Taiwan 47,140 29,403
South Africa 27,134 29,010
India 34,972 28,320
Austria 16,602 20,634
Hong Kong* 20,652 17,867
Poland 13,098 12,737
Greece 13,885 11,837
Russia* 7,082 9,565
Czech Republic 6,001 8,938
Philippines 9,804 8,888
Croatia* 7,258 7,879
Portugal 6,631 7,386
Argentina* 9,371 7,325
Singapore 4,478 5,657
Indonesia 4,084 5,088
Israel 6,716 4,901
Egypt 4,603 2,660
TOTAL INVESTMENTS 601,460 591,452
OTHER NET LIABILITIES 4,034
TOTAL SHAREHOLDERS' FUNDS 595,486
*Includes U.S. listed stocks
+Includes Hong Kong listed stocks
Geographical asset distribution
As at 30 April 2003 and 30 April 2002
Country As at 30 April As at 30 April
2003 2002
Korea (South) 12.88% 10.39%
China 12.06% 8.37%
Brazil 11.11% 4.70%
Thailand 8.07% 6.18%
Hungary 6.34% 4.02%
Turkey 6.34% 5.22%
Mexico 5.89% 7.88%
Taiwan 4.94% 7.00%
South Africa 4.87% 10.20%
India 4.76% 4.36%
Austria 3.47% 0.61%
Hong Kong 3.00% 7.89%
Poland 2.14% 1.75%
Greece 1.99% 1.55%
Russia 1.61% 3.80%
Czech Republic 1.50% 0.55%
Philippines 1.49% 1.33%
Croatia 1.32% 0.72%
Portugal 1.24% 0.90%
Argentina 1.23% 2.47%
Singapore 0.95% 1.02%
Indonesia 0.85% 4.31%
Israel 0.82% 0.00%
Egypt 0.45% 0.56%
Malaysia 0.00% 1.07%
Estonia 0.00% 0.58%
Liquid Assets/(Liabilities) 0.68% (0.55%)
PORTFOLIO ANALYSIS by industry
Industrial analysis
As at 30 April 2003
% of % of
Total Net Total Net
Assets Assets
Industry Classification 2003 2002
CONSUMER DISCRETIONARY
Automobile Manufacturers 1.18 1.79
Broadcasting & Cable TV - -
Casinos & Gaming 0.25 1.07
Department Stores - 0.25
Distributors - -
General Merchandise Stores - -
Homebuilding - 0.23
Hotels - 0.03
Household Appliances 0.69 0.37
Motorcycle Manufacturers - -
Speciality Stores - -
2.12 3.74
CONSUMER STAPLES
Brewers 4.56 7.67
Food Retail 2.28 1.80
Packaged Foods 1.92 3.02
Soft Drinks 1.36 0.91
Tobacco 3.67 0.55
13.79 13.95
ENERGY
Integrated Oil & Gas 6.07 7.24
Oil & Gas Equipment & Services 0.20 -
Oil & Gas Exploration & Production 0.83 0.82
Oil & Gas Refining & Marketing 10.82 3.19
17.92 11.25
FINANCIALS
Banks 18.02 11.10
Consumer Finance 1.68 0.53
Diversified Financial Services 0.03 1.90
Life & Health Insurance - 0.27
Multi-Sector Holdings 0.73 0.09
Real Estate Management & Development 0.47 2.45
20.93 16.34
PORTFOLIO ANALYSIS by industry (continued)
% of % of
Total Net Total Net
Assets Assets
Industry Classification 2003 2002
HEALTH CARE
Pharmaceuticals 4.57 2.66
4.57 2.66
INDUSTRIALS
Aerospace & Defence - 0.22
Construction & Engineering 2.07 -
Highways & Railtracks - 0.42
Industrial Conglomerates 2.38 5.06
Industrial Machinery - 1.07
Marine Ports & Services 2.69 1.29
Trading Companies & Distributors - -
7.14 8.06
INFORMATION TECHNOLOGY
Computer Hardware 0.61 0.67
Computer Storage & Peripherals 2.48 2.63
Electronic Equipment & Instruments - 2.87
IT Consulting & Services 1.49 2.13
Systems Software 0.82 -
Telecommunications Equipment - 0.10
5.40 8.40
MATERIALS
Commodity Chemicals 1.14 0.24
Construction Materials 3.57 4.03
Diversified Chemicals 0.17 -
Diversified Metals & Mining 1.27 0.56
Gold - 2.26
Metals & Glass Containers 0.54 -
Paper Packaging - 0.42
Paper Products 1.61 1.54
Steel 1.01 -
9.31 9.05
PORTFOLIO ANALYSIS by industry (continued)
% of % of
Total Net Total Net
Assets Assets
Industry Classification 2003 2002
TELECOMMUNICATION SERVICES
Alternative Carriers 0.20 -
Integrated Telecommunication Services 7.74 13.18
Wireless Telecommunication Services 2.43 3.30
10.37 16.48
UTILITIES
Electric Utilities 7.77 7.46
Gas Utilities - 0.04
7.77 7.50
OTHER NET ASSETS 0.68 2.57
100.00 100.00
The above groupings are based on the Morgan Stanley International Perspective
Directory of Industry Classification.
PORTFOLIO ANALYSIS by value
Twenty largest portfolio holdings
As at 30 April 2003
Principal % of Issued
Country Share % of Market
Number of of Issue/ Capital Total Cost Value
Shares Issuer Listing Held Net Assets £'000 £'000
EQUITY
INVESTMENTS
198,634,000 China Petroleum &
Chemical Corp. China 1.18 4.12 23,265 24,541
The second-largest
integrated
energy company in
China.
1,817,200 Unibanco Uniao de
Bancos
Brasileiros SA Brazil 0.83 3.47 13,048 20,636
One of Brazil's
largest
financial
conglomerates,
providing a
full range of
banking and
financial
services.
274,640 OMV AG Austria 1.02 3.47 16,602 20,634
The largest
Austrian
industrial
company and one of
the
leading oil and
gas groups in
Central and
Eastern Europe.
426,318 Gedeon Richter Hungary 2.29 3.25 15,944 19,374
Ltd.
Gedeon Richter
Limited
manufactures
pharmaceuticals.
1,439,346 Banco Bradesco SA, Brazil 0.00 3.12 12,817 18,552
ADR, pfd.
One of Brazil's
largest
financial
conglomerates,
providing a
full range of
banking and
financial
services.
35,840,300 Siam Commercial
Bank
Public Co. Ltd. Thailand 1.91 2.99 12,913 17,785
One of Thailand's
largest
commercial
banks.
3,818,015,200 Tupras-Turkiye
Petrol
Rafineleri AS Turkey 1.52 2.79 23,326 16,627
Tupras is Turkey's
largest
industrial company
and is
involved in
refining and
distributing
petroleum
products.
PORTFOLIO ANALYSIS by value (continued)
Principal % of Issued
Country Share % of Market
Number of of Issue/ Capital Total Cost Value
Shares Issuer Listing Held Net Assets £'000 £'000
7,067,863,630 Akbank Turkey 0.87 2.63 15,837 15,673
Akbank is one of
Turkey's
largest privately
owned
commercial banks,
providing
a full range of
banking and
financial
services.
579,220 KT Corp. Korea (South) 0.20 2.50 17,481 14,903
Dominant
telecommunication
services provider
in
South Korea.
883,642 MOL Magyar
Olaj-Es
Gazipari Rt. Hungary 0.90 2.42 10,196 14,432
MOL is the only
quoted fully
integrated
petroleum company
in Central
Europe.
Top 10 Holdings - 161,429 183,157
30.76% of Net
Assets
PORTFOLIO ANALYSIS by value (continued)
Principal % of Issued
Country Share % of Market
Number of of Issue/ Capital Total Cost Value
Shares Issuer Listing Held Net Assets £'000 £'000
4,316,933 Polski Koncern
Naftowy
Orlen SA Poland 1.03 2.14 13,098 12,737
PKN Orlen is
the
overwhelming
market leader
in refining
and
marketing of
oil products
as
well as
petrochemicals
in Poland.
3,070,290 Hyundai Korea (South) 4.07 2.07 11,703 12,301
Development
Co.
One of the
leading
residential
property
developers
in Korea.
17,516,151 Dairy Farm
International
Holdings Ltd. Hong Kong 1.27 2.06 9,187 12,275
Dairy Farm
International
and
its
subsidiaries
operate
retail
stores such as
supermarkets,
drugstores and
convenience
stores.
4,157,701 Cemex SA Mexico 0.26 1.98 12,113 11,791
A Mexican
company which
is
the world's
third largest
cement
producer and
the most
important
cement producer
on
the American
continent.
1,394,984 Nedcor Ltd. South Africa 0.51 1.97 10,273 11,755
Nedcor is a
large South
African
bank with
operations in
commercial
banking,
investment
banking and
asset
management.
1,056,340 Korea Electric
Power
Corp. Korea (South) 0.17 1.87 13,556 11,124
KEPCO is a
vertically
integrated
electricity
supplier
with 15 million
customers in
South Korea.
1,139,850 ITC Ltd. India 0.46 1.73 10,489 10,275
The company
manufactures
and markets
tobacco
products.
PORTFOLIO ANALYSIS by value (continued)
Principal % of Issued
Country Share % of Market
Number of of Issue/ Capital Total Cost Value
Shares Issuer Listing Held Net Assets £'000 £'000
4,919,829 Companhia
Paranaense
de
Energia-Copel, Brazil 0.00 1.67 12,709 9,973
ADR, pfd.
Generates,
transmits,
transforms
and
distributes
electric
power
to the entire
Brazilian
State
of Parana.
6,254,700 Kimberly Clark
de Mexico
SA de CV, A Mexico 1.00 1.61 10,411 9,612
Kimberly is
Mexico's
largest
manufacturer
and marketer
of
consumer
tissue
products,
notebooks and
other
paper-based
office
supplies as
well as
printing
and writing
paper. It is a
43%
owned
subsidiary
of
Kimberly-Clark
in the U.S.
19,323,000 China Merchant
Holdings
International China 0.94 1.60 8,902 9,534
Co. Ltd.
China Merchant
Holdings
International
through its
subsidiaries,
operates
port,
port-related
and toll
highway
business.
Top 20 273,870 294,534
Holdings -
49.46% of Net
Assets
ANALYSIS OF PORTFOLIO
TOTAL VALUE OF INVESTMENT PORTFOLIO (99.32%) 591,452
OTHER NET ASSETS (0.68%) 4,034
595,486
STATEMENT OF TOTAL RETURN OF THE COMPANY
(INCORPORATING THE REVENUE ACCOUNT)
For the year ended 30 April 2003
2003 2002
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains - (72,344) (72,344) - 45,497 45,497
on
investments
Income 19,455 - 19,455 20,829 - 20,829
Investment (5,616) - (5,616) (6,100) - (6,100)
management
fee
Other (2,786) - (2,786) (2,772) - (2,772)
expenses
Net return on
ordinary
activities 11,053 (72,344) (61,291) 11,957 45,497 57,454
before
taxation
Tax on ordinary (3,310) - (3,310) (3,676) - (3,676)
activities
Return on
ordinary
activities
after
taxation
for the 7,743 (72,344) (64,601) 8,281 45,497 53,778
financial
year
Dividend in
respect of
equity shares (5,685) - (5,685) (5,695) - (5,695)
Transfer to/
(from)
reserves
(after
aggregate
dividends
paid and 2,058 (72,344) (70,286) 2,586 45,497 48,083
proposed)
Return per
Ordinary
Share
(before 1.70p (15.89p) (14.19p) 1.82p 9.97p 11.79p
dividend)
Total recognised gains and losses since the last annual report:
2003 2002
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Return on
ordinary
activities
after
taxation for 7,743 (72,344) (64,601) 8,281 45,497 53,778
the financial
year
Prior year - - - (1,394) 1,992 598
adjustment
Total
recognised
gains and
losses
since last 7,743 (72,344) (64,601) 6,887 47,489 54,376
annual report
Notes:
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.
BALANCE SHEET
As at 30 April 2003
2003 2002
£'000 £'000
FIXED ASSETS
Investments 591,452 669,877
CURRENT ASSETS
Debtors 19,444 9,109
Cash 6,807 -
26,251 9,109
CREDITORS: amounts falling due within one year (21,342) (12,449)
NET CURRENT ASSETS/(LIABILITIES) 4,909 (3,340)
TOTAL ASSETS LESS CURRENT LIABILITIES 596,361 666,537
PROVISION FOR LIABILITIES AND CHARGES (875) (320)
595,486 666,217
CAPITAL AND RESERVES
Called-up Share Capital 113,796 113,893
Share Premium Account 275,307 275,307
Capital Redemption Reserve 3,940 3,843
Capital Reserve - Realised 194,356 199,848
Capital Reserve - Unrealised (9,837) 57,460
Revenue Reserve 17,924 15,866
SHAREHOLDERS' FUNDS (all equity) 595,486 666,217
Net Asset Value per Ordinary Share (in pence)
- Basic 130.82 146.24
- Diluted N/A 144.00
These Financial Statements were approved by the Board on 1 July 2003.
CASH FLOW STATEMENT
For the year ended 30 April 2003
2003 2002
£'000 £'000
Reconciliation of operating profit to net cash inflow
from operating activities
Net return on ordinary activities before taxation 11,053 11,957
(Increase)/decrease in debtors (39) 15
Decrease in accrued income 398 1,119
(Decrease) in creditors (69) (29)
Net cash inflow from operating activities 11,343 13,062
Cash flow statement
Net cash inflow from operating activities 11,343 13,062
Taxation (3,876) (2,778)
Financial investments 6,569 (20,984)
14,036 (10,700)
Equity dividends paid (5,690) (5,704)
8,346 (16,404)
Financing (445) (897)
Increase/(decrease) in cash 7,901 (17,301)
Reconciliation of net cash flow to movement
in net funds/(debt)
Increase/(decrease) in cash in the year 7,901 (17,301)
Opening net (debt)/funds (1,094) 16,207
Closing net funds 6,807 (1,094)
This preliminary statement is not the company's statutory accounts. The
statutory accounts for the year ended 30th April 2002 have been delivered to the
Registrar of Companies and received an audit report which was unqualified and
did not contain statements under s237(2) and (3) of the Companies Act 1985. The
statutory accounts for the year ended 30th April 2003 have not been approved,
audited or filed.
For information please contact David Bliss/Will Rogers at UBS Warburg Ltd (0207
567 8000). No representation or warranty is made by UBS Warburg Ltd as to the
accuracy or completeness of the information contained in this announcement and
no liability will be accepted for any loss arising from its use. These figures
have been prepared by Franklin Templeton Investments and are their sole
responsibility.
End of Announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
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