Final Results

RNS Number : 3477D

Electra Private Equity PLC

01 December 2009

 



ELECTRA PRIVATE EQUITY PLC

Unaudited Preliminary Results for Year ended 30 September 2009

The information contained in this announcement is restricted and is not for release, publication, or distribution, directly or indirectly, in or into the United States, Canada, Japan or Australia. The information in this announcement does not constitute an offer of securities for sale in the United States, Canada, Japan or Australia.

• Net asset value down 4.5% over the year to 1,720p per share at 30 September 2009 (2008: 1,801p); unaudited net asset value per share at 24 November 2009 of 1,717p

• Share price up 111.8% over six months to 30 September 2009 (FTSE All-Share up 32.8%); a decrease of just 0.9% over the year (FTSE All-Share increase of 6.1%)

• Net asset value per share, including Special Dividends, up 95% over the five years to 
  30 September 2009 (FTSE All-Share up 16.0%)

• Share price up 54.3% over the five years 

• Return on equity of 13.3% on an annualised basis for the five years

• Quiet year of investment activity. £88 million invested (2008: £114 million) and £27 million realised (2008: £192 million)

• New 3½ year, £185 million multi-currency revolving credit facility agreed with existing lenders; £42 million net raised from the issue of seven year Zero Dividend Preference (ZDP) shares

• Net liquid resources at 30 September 2009 of £96 million

• Investment capacity of £281 million

Commenting on the results, Sir Brian Williamson, Chairman, said: 

"As you would expect in these unprecedented times, the operating environment for many of our portfolio companies has been more challenging than it was a year ago with varying degrees of pressure on working capital being reported. However, considering the current environment, we are pleased to say that our portfolio is in good shape and we end the year with diverse and defensive investments.

"With a stable portfolio our Manager is not fire fighting and can devote its energies to seeking new opportunities. This, together with £281 million of investment capacity, means that Electra is well positioned for the future."

For further information:
Sir Brian Williamson, Chairman, Electra Private Equity PLC	020 7306 3883
Hugh Mumford, Managing Partner, Electra Partners LLP	020 7214 4200
Monique Dumas, Investor Relations Partner, Electra Partners LLP	020 7214 4200
Nick Miles, M: Communications	020 7920 2321

Net Asset Value Per Share

	30 September 2009	30 September 2008	24 November 2009
Net asset value per share	1,720p	1,801p	1,717p
Decrease since 30 September 2008	(4.5%)
Increase in FTSE All-Share Index since 30 September 2008	6.1%

Return on Equity comprises Total "Profit on Ordinary Activities after Taxation" divided by opening "Total Equity Shareholders' Funds" calculated on an annualised basis.

The unaudited net asset value per share at 24 November 2009 was calculated on the basis of the net asset value at 30 September 2009 adjusted to reflect the purchases and sales of investments, currency movements and bid values on that day in respect of listed investments.

The figures and financial information for the year ended 30 September 2009 do not constitute the statutory financial statements for that year. Those financial statements have not yet been delivered to the Registrar, nor have the Auditors yet reported on them. The figures and financial information for the year ended 30 September 2008 do not constitute the statutory financial statements for that year. The financial statements in respect of the year ended 30 September 2008 have been delivered to the Registrar and included the Auditors' Report which was unqualified and did not contain a statement under either section 237(2) or section 237(3) of the Companies Act 1985.

A copy of the Chairman's Statement, Manager's Review and Primary Statements are attached.

The Report and Accounts will be sent to shareholders in December 2009 and will thereafter be available from the Company's registered office at Paternoster House, 65 St Paul's Churchyard, London EC4M 8AB. The Annual General Meeting will be held on Tuesday 2 February 2010 at the Barber-Surgeons' Hall, Monkwell Square, London EC2 at 12 Noon.

  CHAIRMAN'S STATEMENT

Overview

Despite the challenging environment, Electra ended the year in good shape. Whilst the operating environment for many of our portfolio companies has been difficult, with varying degrees of pressure on working capital, the diverse and defensive characteristics of our investments mean that Electra is well positioned for the future. 

During the year, the priority for Electra's Manager, Electra Partners, has been to protect and enhance the existing portfolio. Our holdings were not impervious to the near collapse of bank finance and the cessation of supplier credit insurance, and we had to write off our investment in Vasanta. However, the agreement to combine Baxi with De Dietrich Remeha has delivered a significant uplift in value.

Results

At 30 September 2009 Electra's net asset value per share was 1,720p compared with 1,801p at 30 September 2008, a decline of 4.5%. Over the same period the FTSE All-Share Index increased by 6.1%. Over the five years to 30 September 2009 the net asset value per share, inclusive of Special Dividends, increased by 95% and Electra achieved an annualised return on equity of 13.3%.

Share Price Performance

The fall in Electra's share price of 53% over the first half of the year was driven by an overall decline in the stock market as well as the perception that risks associated with the listed private equity sector outweighed its upside potential. The perception of risk arose from concerns on corporate leverage, over-commitment to third party funds and exposure to highly priced, excessively geared leveraged buyouts - none of which applies to Electra. In recent months there has been a recovery in Electra's share price (an increase of 112% over the six months to 30 September 2009) which has resulted in a year on year decrease of just 1%. Over the five years to 30 September 2009 Electra's share price increased by 54.3% compared to a 16.0% increase in the FTSE All-Share Index.

Investment Activity

The mid-market buyout sector was relatively quiet during the year as many participants struggled with existing portfolio problems and the absence of bank debt. Electra Partners considered 139 investment opportunities (2008: 186) and bid on 14 possible transactions (2008: 19). However, in contrast to last year, many of these were co-investment or bolt-on acquisitions to existing investments, or mezzanine type opportunities. As expected, valuation uncertainties and difficult bank conditions resulted in low levels of new investment and realisations over the last year.

In total £88 million was invested over the year compared with £114 million in the previous year. Of the £88 million invested, £31 million was to acquire a secondary position in the Frankfurt-based Steadfast Capital Fund I, £17 million was invested in Credit Opportunities, a special purpose fund established by Electra to invest in stressed debt situations and £10.5 million was invested in the London & Stamford Property rights issue. Realisations in the year, which mainly comprised sales of quoted investments and proceeds from secondaries, amounted to £27 million compared to £192 million in the previous year. Full details of the investment

activity over the year are included in the Manager's Review.

Bank Facilities and Zero Dividend Preference Shares

Although Electra's existing bank facilities were not due for renewal until September 2010, Electra agreed terms in July with its existing lenders for a new multi-currency revolving credit facility of £185 million for three and a half years. Shortly afterwards Electra's new

wholly-owned subsidiary, Electra Private Equity Investments plc, undertook an institutional cash placing and raised £42 million net by the issue of seven year Zero Dividend Preference Shares ("ZDP shares"). Mr Armstrong, Mr Williams and I have been appointed Directors of the new subsidiary.

The combination of the funding available from the new banking facilities and ZDP shares diversifies and lengthens the maturity of Electra's sources of funding. The Board believes this extra liquidity and access to capital puts Electra in a strong position at this stage of the economic cycle.

Resources and Commitments

At 30 September 2009 Electra had cash, liquidity funds and floating rate notes of £266 million and £170 million of borrowings drawn down under the new banking facility. Available investment capacity amounted to £281 million comprising £54 million of net cash together with banking facilities of £185 million and £42 million of net proceeds from the ZDP share issue. At that date Electra also had a quoted portfolio valued at £117 million and commitments to third party funds, which may be drawn down over the next five years, amounting to £103 million. 

Buy-Backs of Shares for Cancellation

During the year to 30 September 2009 Electra repurchased for cancellation 257,000 (2008: 1.66 million) shares for a total cost of £2.1 million (2008: £26 million). The shares were acquired at an average discount of 52.3% to the net asset value of 1,720p per share at 30 September 2009.

Over the last five years 11.4 million shares have been purchased for cancellation resulting in a repayment to shareholders of £143.9 million. With the need to fund the future redemption of the ZDP shares and anticipating attractive investment opportunities, the Board considers that purchases of shares for cancellation will be less likely in the medium term. Directors will, however, continue to seek shareholder authority on an annual basis to enable them to purchase shares for cancellation when they believe it will be in the best interests of shareholders.

Appointment of Non-Executive Director

The Board announced the appointment of Roger Perkin as a non-executive Director of Electra with effect from 24 November 2009. Part of Mr Perkin's role will be to assume the chairmanship of the Audit Committee after the Annual General Meeting in 2010. Mr Perkin is a former senior partner at Ernst & Young and brings with him a significant amount of global accounting experience, having specialised in financial services.

Corporate Governance

Having reviewed the AIC Code and Guide in the light of Sir David Walker's review of corporate governance in the UK banking industry, the Board decided during the year to appoint an independent Company Secretary. Accordingly, since June 2009 the services of Company Secretary have been undertaken by Frostrow Capital LLP, in addition to its existing role as Board adviser. Frostrow took over from Philip Dyke, a Partner of Electra Partners LLP, who undertook the duties of Company Secretary for the previous 20 years. We thank him for his invaluable contribution. Philip remains a Partner of Electra Partners LLP.

Articles of Association

Shareholders last approved a number of changes to the Articles of Association at the Annual General Meeting held in 2008. Following final implementation of the Companies Act 2006 on 1 October 2009, together with the recent implementation of the EU Shareholder Rights Directive in the UK, the Board has decided to seek shareholders' approval to update the Company's Articles of Association to bring them in line with current legislation.

Alternative Investment Fund Managers Directive

The Board continues to monitor the draft Alternative Investment Fund Managers Directive and supports the representations of UK private equity trade bodies that have been made to the EU concerning this Directive.

Outlook

In recent months global capital markets have seen a number of developments. In particular Electra Partners believes that distressed sellers exist across the capital structure and a shortage of capital to pursue opportunities means that competition for deals is likely to be reduced. These factors, together with Electra's flexible investment mandate, will enable Electra Partners to target the growing number of investment opportunities in the market including capital for restructuring, buyouts, private equity into public companies, development capital, secondary investments and debt. 

With a stable portfolio our Manager is not fire fighting and can devote its energies to seeking new opportunities. This, together with £281 million of investment capacity, means that Electra is in a good position for the future.

Sir Brian Williamson                        

Chairman

30 November 2009

  OBJECTIVE AND INVESTMENT POLICY

The business and affairs of Electra are managed on an exclusive and fully discretionary basis by Electra Partners, an independent private equity fund manager. Electra is managed as an HM Revenue and Customs approved investment trust.

Electra's objective is to achieve a rate of return on equity of between 10-15% per annum over the long term by investing in a portfolio of private equity assets. Unless required to do so as an investment trust, Electra's Directors would not recommend the payment of dividends on a regular basis.

Electra Partners, on behalf of Electra, will aim to achieve this target rate of return by:

- exploiting a track record of successful private equity investment; 

- utilising the proven skills of its senior management team, its strong record of deal flow generation and long-term presence in the private equity market;

- investing in a number of value-creating transactions with a balanced risk profile across a broad range of investment sectors through a variety of financial instruments; and

- actively managing its total capital position and levels of gearing in light of prevailing economic conditions. 

Total bank borrowings by Electra will always be less than 40% of its total assets. 

Electra Partners will target private equity opportunities (including direct investment, fund investment and secondary buy-outs of portfolios and funds) so that the perceived risks associated with such investments are justified by expected returns. These investments will be made across a broad range of sectors and types of financial instrument such as equity, senior equity, convertibles and mezzanine debt.

The investment focus will be principally on Western Europe, with the majority of investments expected to be made in the United Kingdom where Electra Partners has historically been most active. Electra Partners would expect there to be an emphasis on areas where its senior management team has specific knowledge and expertise. In circumstances where Electra Partners feels that there is merit in gaining exposure to countries and sectors outside its network and expertise, consideration will be given to investing in specific funds managed by third parties or co-investing with private equity managers with whom it has developed a relationship.

In implementing Electra's investment strategy, Electra Partners typically targets investments at a cost of £20-75 million in companies with an enterprise value of £60-200 million.

Electra will not invest more than 15% of its total assets at the time of investment in any other listed closed-ended investment funds.

  The Portfolio

Electra's portfolio consists of investments in companies and other investment vehicles (the "investment portfolio"). In addition, at 30 September 2009 the Company held cash, liquidity funds and floating rate notes valued at £266 million.

The investment portfolio consists primarily of direct investments in unquoted and quoted companies together with investments in funds where investments are held in limited partnerships managed by other private equity managers. Electra will normally invest in unquoted companies but may invest in quoted companies when the management team, which Electra wishes to support, operates through a quoted vehicle. Quoted investments may also be held where they arise from previously unquoted investments and continue to generate the returns required under the investment mandate. In general these are likely to be sold when resources for new unquoted transactions are required. Investments in funds are made principally to gain exposure to geographic areas outside the UK and which, because of the relationship with the fund manager, are likely to generate co-investment opportunities for Electra.

At 30 September 2009 Electra's available investment capacity amounted to £281 million comprising £54 million of net cash together with banking facilities of £185 million and £42 million of net proceeds from the ZDP share issue.

As at 30 September			2009	2008
			£m	£m
Investment Portfolio*
	Direct investments		474	403
	Funds		73	102
			547	505
Available Investment Capacity			281	336
Investment Portfolio and Available Investment Capacity *			828	841

*    Excludes accrued income on the investment portfolio of £29,450,000 (2008: £9,034,000).

At 30 September 2009 Electra held direct investments in 64 companies with an aggregate value of £474 million and investments in 29 funds with an aggregate value of £73 million. 

The top ten and twenty investments account for 51% and 69% respectively of the investment portfolio.

Geographically, 55% of the investment portfolio was situated in the UK, 33% in Continental Europe, 6% was based in the USA and 6% in Asia and elsewhere.

  Investment Portfolio Analysis

Overall, Electra has performed well in the year under review given the volatile market, the decline in the UK economy and the difficulties in the banking sector. In the year to 30 September 2009, Electra's net asset value per share declined from 1,801p per share at the beginning of the period to 1,720p per share at 30 September 2009, a decline of 4.5%. This compares to a decline of 10% in the previous year.

The last financial year undoubtedly posed many challenges. Several of Electra's portfolio companies entered a period of lower profitability at a time when refinancing options were limited. The loss of the investment in Vasanta, which led to a write-off of £29 million in the year, is an example of the difficulties caused by market conditions. In this case the removal of credit insurance placed too great a burden on the financing available to the company causing the loss of customers and a lowering of profitability. 

While the stock market rebounded strongly in the second half of the year, this was only partially reflected in the valuation of Electra's portfolio, as a result of the nature of the investments. However, with few exceptions the portfolio is conservatively financed and is poised to resume value growth when conditions allow. 

Year ended 30 September	2009	2008	2007
	£m	£m	£m
Opening portfolio	505	620	380
Investments	88	114	322
Realisations	(27)	(192)	(303)
Net capital (decrease)/increase	(19)	(37)	221
Closing portfolio *	547	505	620

*    Excludes accrued income on the investment portfolio. 2009: £29,450,000 
(2008: £9,034,000, 2007: £13,419,000).

The economic situation in the UK and elsewhere continues to have an impact on portfolio activity both in terms of new investment and realisations. New investment has continued to fall, the total reaching £88 million compared to £114 million in 2008 and £322 million in 2007. Realisations were the most affected with only one investment being sold from the unlisted portfolio. Total realisations for the year amounted to £27 million compared to £192 million in 2008 and £303 million in 2007.

Prospects

For the second year running, conditions in the UK economy and financial markets have made the process of adding value to the portfolio difficult to achieve without taking significant risk. In the last few months, however, there has been some evidence of an improvement in the markets in which Electra operates. While banking finance remains difficult to obtain, it appears that the pricing of potential transactions is beginning to reflect the current environment. Should this trend continue, the current year will see an increase in the investment rate. In addition, we continue to seek opportunities to enhance the existing portfolio and, based on transactions currently in the pipeline, we expect further progress to be made in this respect. 

With a realistically valued portfolio and the liquidity available to make significant further purchases, Electra remains in a good position to make progress as soon as market conditions improve.

  Investment Portfolio Review

Investments

In the year to 30 September 2009 new investments totalled £88 million compared to £114 million in the previous year. This is the second year running that investment has been made at a comparatively low level. While the number of potential new deals reviewed during the year has remained at a reasonable level, we declined to pursue the majority of these as in our view the prices being asked did not reflect economic reality. Indeed, because of the difficulties in judging future levels of profitability and obtaining adequate bank financing, new investment became challenging. During the year we concentrated on existing portfolio companies with a view to increasing the profitability of and reducing bank lending ratios in respect of these investments.

We have also taken advantage of pricing anomalies in the debt market. A new special purpose vehicle, Credit Opportunities, was set up to purchase senior debt at a discount. During the year, £17 million was spent in the purchase of senior debt securities in 14 companies at an average price of 73%, a discount of 27% to nominal value. In another transaction, £11.5 million nominal value of mezzanine debt in Baxi was purchased at a discount of 65%. The debt market has moved favourably since these investments have been made.

The most significant investment made during the year was the purchase of a secondary interest in the Steadfast Capital I Fund based in Germany. The total cost of this secondary investment was £30.8 million and it was acquired at a discount to the local manager's valuation. The portfolio acquired included a significant investment in MPS, a market leader in the manufacture and distribution of abattoir equipment. MPS accounted for approximately 60% of the total consideration, the remainder of the consideration being spread over a number of further investments. 

In accordance with the strategy of improving existing portfolio investments, we have commenced a number of initiatives. In the case of Baxi, we provided support in the form of a further capital investment of £6.2 million, in addition to the mezzanine debt purchase mentioned above, prior to its agreement to combine with De Dietrich Remeha to form BDR Thermea. BDR Thermea will benefit from significant synergies and will have a leading position in the European heating products market. In the case of Safeland, we repurchased for a nominal consideration the securities sold approximately two years ago for £12.5 million. A number of further portfolio initiatives remain ongoing which, if successful, will bring benefit in the current year. 

Realisations

In view of the economic conditions prevailing for much of the year, realisations from the portfolio fell sharply. Total realisations for the year amounted to £27 million compared with £192 million in the previous year. Realisations of unlisted investments amounted to only £10 million of which £7.5 million was accounted for by the sale of an investment from a secondary portfolio in France. Realisations from funds also fell to a low level, with total redemptions during the year falling to just under £5 million, most of which arose from the sale of two investments, one in Argentina and the other in the USA. During the year, we realised £12 million from the sale of quoted securities including £7.4 million in respect of eTelecare, a company based in the Philippines, originally acquired as part of another investment over 15 years ago.

Performance

Over the year to 30 September 2009 Electra's investment portfolio declined in value by a net amount of £19 million, a decrease of 3.8%. The two halves of the financial year were a marked contrast with the decline in the first half year of £78 million offset by an increase in the second half of £59 million. Most of the performance in the second half came from the listed portfolio which increased in value by £43 million, an increase of 70%, whereas the unlisted portfolio, including direct unlisted, secondaries and funds, increased by £16 million, a percentage increase of 4.0%. The marked difference in performance between the listed and unlisted portfolios was due to a number of factors. These include a significant part of the unlisted portfolio being carried at a value which is not directly related to stock market levels and due recognition being given to reduced liquidity where market multiples were applied.

During the financial year the listed portfolio increased in value by 13% after taking account of a £13.2 million decline in the valuation of Candover. Excluding Candover, the listed portfolio increased by 34% with significant contributions from London & Stamford Property in the UK and Zensar in India, whose value increased over the year by 136%.

Over the financial year, the unlisted portfolio declined by 7.6%. The performance was negatively impacted by Vasanta which was sold at a loss of £29.4 million. The combination of Baxi with De Dietrich Remeha on the other hand gave rise to an increase in value over the year of £20.4 million together with an increase in accrued income of £14.6 million giving an overall increase in value of £35 million. 

Largest Valuation Changes

Company	Valuation at	Valuation
	30 September 2009	Increase/(Decrease)
	£m	£m	%
Increases
Baxi	41.3	20.4	98
Zensar	15.6	9.0	136
London & Stamford Property	38.0	7.8	26
CH-Pharma	12.7	5.8	77
Allflex	50.7	5.5	12
Supervia	5.5	5.5	-
Thermocoax	12.5	5.4	76
Decreases
Vasanta	-	(29.4)	(100)
Candover	5.4	(13.3)	(71)
Capital Safety	6.2	(10.0)	(62)
Premier Asset Management	3.3	(7.1)	(68)
Amtico	6.5	(6.3)	(49)
Bizspace	0.2	(5.5)	(96)

Other significant increases included CH-Pharma and Thermocoax where higher profitability was responsible for the valuation increases of £5.8 million and £5.4 million respectively, while the increase of £5.5 million of Allflex was due to currency movements. We also increased the value of Electra's investment in Supervia by £5.5 million to reflect the turnaround of an investment previously written off. Supervia holds the franchise of a commuter railroad in Rio de Janeiro, which currently has 14 years to run. After a number of years of financial restructuring, this railroad is now profitable and Electra's interest has been revalued accordingly.

Decreases in valuation included Capital Safety and Amtico, which were written down by £10 million and £6.3 million respectively to reflect declines in profitability and Bizspace where the increase in property yields led to a decline in value of £5.5 million.

Electra Partners LLP

30 November 2009

Consolidated Income Statement (unaudited)

For the year ended 30 September		Revenue £'000		Capital £'000		2009 Total £'000		Revenue £'000		Capital £'000		2008 Total £'000
Net profit/(loss) on investments held at fair value		35,325		(25,276)		10,049		26,188		(46,538)		(20,350)
Loss on revaluation of foreign currencies		-		(19,006)		(19,006)		-		(18,384)		(18,384)
		35,325		(44,282)		(8,957)		26,188		(64,922)		(38,734)
Other Income		1,142		-		1,142		2,857		9,556		12,413
Incentive schemes		-		(6,037)		(6,037)		-		(9,496)		(9,496)
Priority profit share paid to general partners		(11,891)		-		(11,891)		(13,435)		-		(13,435)
Other expenses		(5,564)		-		(5,564)		(8,381)		-		(8,381)
Net Loss before Finance Costs and Taxation		19,012		(50,319)		(31,307)		7,229		(64,862)		(57,633)
Finance costs		(6,865)		(452)		(7,317)		(7,921)		-		(7,921)
Loss on Ordinary Activities before Taxation		12,147		(50,771)		(38,624)		(692)		(64,862)		(65,554)
Taxation Credit/( Expense)		(100)		12,233		12,133		(4,366)		567		(3,799)
Loss on Ordinary Activities after Taxation		12,047		(38,538)		(26,491)		(5,058)		(64,295)		(69,353)
Attributable to Equity Shareholders		12,047		(38,538)		(26,491)		(5,058)		(64,295)		(69,353)
Basic and Diluted Earnings per Ordinary Share		34.05p		(108.92p)		(74.87p)		(13.98p)		(177.69p)		(191.67p)

The 'Total' columns of this statement represent the Group's Income Statement prepared in accordance with International Financial Reporting Standards adopted by the EU ("IFRS"). The supplementary Revenue and Capital columns are both prepared under guidance published by the Association of Investment Companies.

The amounts dealt with in the Consolidated Income Statement are all derived from continuing activities.

	2009	2008
Number of Ordinary Shares in issue at 30 September	35,338,687	35,595,687
Special Dividends Paid
Total paid (£'000)	-	9,149
Per share	-	25p

Consolidated Statement of Changes in Equity (unaudited)

For the year ended 30 September for the Group	2009	2008
	£'000	£'000
Total equity at 1 October	640,949	745,506
Loss after taxation	(26,491)	(69,353)
Foreign currency translation differences	(4,409)	437
Total Recognised Income and Expense	610,049	676,590
Special dividend to equity shareholders *	-	(9,149)
Purchase of own shares	(2,096)	(26,492)
Total Equity Shareholders' Funds at 30 September	607,953	640,949

* No special dividend was paid during the period (2008: 25p). Share buy-backs and cancellations during the six months to 31 March 2009 were 7,000 on 26 November 2008 and 250,000 on 2 December 2008 (2008: 50,000 ordinary shares on 
23 November 2007, 160,000 ordinary shares on 27 November 2007, 200,000 ordinary shares on 5 December 2007, 92,000 ordinary shares on 6 December 2007, 55,000 ordinary shares on 14 December 2007, 100,000 ordinary shares on 22 January 2008 and 1,000,000 ordinary shares on 17 March 2008).

  Consolidated Balance Sheet (unaudited)

				As at 30 Sept 2009				As at 30 Sept 2008
		£'000		£'000		£'000		£'000
Non-Current Assets
Investments held at fair value:
Unlisted and listed				576,291				514,249
Other investments				229,322				276,467
				805,613				790,716
Current Assets
Trade and other receivables		5,113				3,043
Cash and cash equivalents		36,500				43,791
		41,613				46,834
Current Liabilities
Trade and other payables		6,757				8,424
Net Current Assets				34,856				38,410
Total Assets less Current Liabilities				840,469				829,126
Zero Dividend Preference shares		41,896				-
Bank loans		169,732				158,870
Deferred tax		148				12,317
Provision for liabilities and charges		20,740				16,990
Non-current Liabilities				232,516				188,177
Net Assets				607,953				640,949
Net asset value per Ordinary Share				1,720.36p				1,800.64p

  Consolidated Cash Flow Statement (unaudited)

For the year ended 30 September		£'000		2009 £'000		£'000		2008 £'000
Operating Activities
Purchases of unlisted and listed investments		(87,234)				(100,132)
Purchases of other investments		(252,000)				(245,138)
Amounts paid under incentive schemes		(2,287)				(31,808)
Sales of unlisted and listed investments		24,138				190,825
Sales of other investments		297,000				269,000
Dividends and distributions received		1,669				2,514
Other investment income received		12,842				22,376
Interest income received		844				2,559
Other income received		297				297
Expenses paid		(11,668)				(16,580)
Taxation paid		(2,229)				(3,295)
Net Cash (Outflow)/Inflow from Operating Activities				(18,628)				90,618
Financing Activities Bank loans drawn Bank loans repaid Issue of Zero Dividend Preference shares Purchase of own shares Finance costs Other finance costs Dividend paid		376,726 (396,006) 41,444 (2,096) (5,015) (4,443) -				55,466 (75,599) - (26,492) (7,583) (338) (9,149)
Net Cash Inflow/(Outflow) from Financing Activities				10,610				(63,695)
Changes in cash and cash equivalents				(8,018)				26,923
Cash and cash equivalents at 1 October				43,791				16,948
Translation difference				727				(80)
Cash and Cash Equivalents at 30 September				36,500				43,791

END

 

END

 

 

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