Final Results

RNS Number : 4315S

Value and Income Trust plc

18 May 2009

VALUE AND INCOME TRUST PLC

PRELIMINARY RESULTS

FOR THE YEAR ENDED 31 MARCH 2009

SUMMARY

	31 March 2009	31 March 2008

Net asset value per share valuing debt at par (including revenue)	165.6p	251.0p
Net asset value per share valuing debt at market value (including revenue)	129.6p	222.7p
Ordinary share price	88.5p	166.0p
Total interim dividend and proposed final dividend per share	7.5p	7.4p
Total assets less current liabilities	£111.5 million	£151.8 million

THE YEAR

Net Asset Value total return (with debt at market value) of -39.4% over one year and -37.2% over three years.
Share price total return of -43.6% over one year and -56.1% over three years (FTSE All-Share Index total return of -29.3% over one year and -27.5% over three years).
Dividends for the year up 1.4% - 22nd consecutive year of real increase.

DIVIDEND

The Directors recommend that a final dividend of 3.7 pence per share (2008 - 3.7 pence) is paid on 17 July 2009 to shareholders on the register on 19 June 2009. The ex-dividend date is 17 June 2009. An interim dividend of 3.8 pence per share (2008 - 3.7 pence) was paid on 9 January 2009.

OUTLOOK

UK equities have continued to recover since the year end; current valuations give grounds for optimism. Property gives an unprecedented yield advantage over bonds.

For further information, please contact:-

Matthew Oakeshott or Angela Lascelles of OLIM Limited, Manager

www.olim.co.uk

Tel: 020 7439 4400

VALUE AND INCOME TRUST PLC

GROUP INCOME STATEMENT

	Year ended			Year ended
	31 March 2009 (Unaudited)			31 March 2008 (Audited)
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000

Investment income
Dividend income	4,350	-	4,350	4,368	-	4,368
	________	________	________	________	________	________
Rental income	3,314	-	3,314	3,284	-	3,284
Interest income on short-term deposits	215	-	215	205	-	205
	________	________	________	________	________	________
Other operating income	3,529	-	3,529	3,489	-	3,489
	________	________	________	________	________	________
Total revenue	7,879	-	7,879	7,857	-	7,857

Gains and losses on investments
Realised (losses)/gains on held-at-fair-value investments	-	(7,673)	(7,673)	-	5,451	5,451
Unrealised losses on investments	-	(32,380)	(32,380)	-	(28,069)	(28,069)

	________	________	________	________	________	________
Total income	7,879	(40,053)	(32,174)	7,857	(22,618)	(14,761)
	________	________	________	________	________	________
Expenses
Investment management fees	(253)	(591)	(844)	(367)	(855)	(1,222)
Other operating expenses	(402)	-	(402)	(396)	-	(396)

Finance costs	(3,501)	-	(3,501)	(3,501)	-	(3,501)
	________	________	________	________	________	________
Total expenses	(4,156)	(591)	(4,747)	(4,264)	(855)	(5,119)
	________	________	________	________	________	________
(Loss)/profit before tax	3,723	(40,644)	(36,921)	3,593	(23,473)	(19,880)

Taxation	-	1,400	1,400	-	1,310	1,310
	________	________	________	________	________	________
(Loss)/profit for the period	3,723	(39,244)	(35,521)	3,593	(22,163)	(18,570)
	________	________	________	________	________	________

Earnings per ordinary share (pence)	8.17	(86.15)	(77.98)	7.89	(48.66)	(40.77)
	________	________	________	________	________	________

VALUE AND INCOME TRUST PLC

COMPANY INCOME STATEMENT

	Year ended			Year ended
	31 March 2009 (Unaudited)			31 March 2008 (Audited)
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000

Investment income
Dividend income	4,350	-	4,350	4,368	-	4,368
	________	________	________	________	________	________
Rental income	1,195	-	1,195	1,191	-	1,191
Interest income on short-term deposits	188	-	188	162	-	162
	________	________	________	________	________	________
Other operating income	1,383	-	1,383	1,353	-	1,353
	________	________	________	________	________	________
Total revenue	5,733	-	5,733	5,721	-	5,721

Gains and losses on investments
Realised (losses)/gains on held-at-fair-value investments	-	(7,795)	(7,795)	-	5,451	5,451
Unrealised losses on investments	-	(30,794)	(30,794)	-	(26,754)	(26,754)
	________	________	________	________	________	________
Total income	5,733	(38,589)	(32,856)	5,721	(21,303)	(15,582)
	________	________	________	________	________	________
Expenses
Investment management fees	(169)	(394)	(563)	(254)	(593)	(847)
Other operating expenses	(268)	-	(268)	(291)	-	(291)

Finance costs	(1,851)	-	(1,851)	(1,851)	-	(1,851)
	________	________	________	________	________	________
Total expenses	(2,288)	(394)	(2,682)	(2,396)	(593)	(2,989)
	________	________	________	________	________	________
(Loss)/profit before tax	3,445	(38,983)	(35,538)	3,325	(21,896)	(18,571)

Taxation	17	-	17	1	-	1
	________	________	________	________	________	________
(Loss)/profit for the period	3,462	(38,983)	(35,521)	3,326	(21,896)	(18,570)
	________	________	________	________	________	________

Earnings per ordinary share (pence)	7.60	(85.58)	(77.98)	7.30	(48.07)	(40.77)
	________	________	________	________	________	________

The total column of this statement represents the Income Statement of the Company prepared in accordance with IFRS.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the

Association of Investment Companies. All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of Value and Income Trust PLC, the parent company. There are no minority interests.

VALUE AND INCOME TRUST PLC

GROUP BALANCE SHEET

	As at		As at
	31 March 2009 (Unaudited)		31 March 2008 (Audited)

	£'000	£'000	£'000	£'000
ASSETS
Non current assets
Investments held at fair value through profit or loss		62,301		92,063
Investment properties held at fair value through profit or loss		44,850		51,000
		__________		__________
		107,151		143,063

Current assets
Cash and cash equivalents	4,903		9,609
Other receivables	1,605		562
	__________		__________
		6,508		10,171

		__________		__________
TOTAL ASSETS		113,659		153,234

Current liabilities
Other payables		(2,189)		(1,406)
		__________		__________
		111,470		151,828

Non-current liabilities
Debenture stock	(35,420)		(35,444)
Deferred tax	(644)		(2,044)
	__________		__________
		(36,064)		(37,488)
		__________		__________
		75,406		114,340
		__________		__________
EQUITY

Called up share capital		4,555		4,555
Share premium		18,446		18,446
Retained earnings		52,405		91,339
		__________		__________
		75,406		114,340
		__________		__________

Net Asset Value per ordinary share (pence)		165.55		251.02
		__________		__________

VALUE AND INCOME TRUST PLC

GROUP STATEMENT OF CHANGES IN EQUITY

	Year ended 31 March 2009 (Unaudited)				Year ended 31 March 2008 (Audited)
	Share	Share	Retained	Total	Share	Share	Retained	Total
	capital	premium	earnings		capital	premium	earnings
	£000	£000	£000	£000	£000	£000	£000	£000
Net assets at 31 March 2008	4,555	18,446	91,339	114,340	4,555	18,446	113,189	136,190
Net loss for the year	-	-	(35,521)	(35,521)	-	-	(18,570)	(18,570)
Dividends paid	-	-	(3,413)	(3,413)	-	-	(3,280)	(3,280)
	_______	_______	________	_______	_______	_______	_______	_______
Net assets at 31 March 2009	4,555	18,446	52,405	75,406	4,555	18,446	91,339	114,340
	_______	_______	________	_______	_______	_______	_______	_______

VALUE AND INCOME TRUST PLC

GROUP STATEMENT OF CASH FLOWS

For the year ended 31 March 2009		2009			2008
		(Unaudited)			(Audited)
	Notes	£000	£000	£000		£000
Cash flows from operating activities
Dividend income received			4,705			4,430
Rental received			3,147			3,411
Interest received			215			206
Operating expenses paid			(1,552)			(2,213)
			__________			__________
NET CASH FROM OPERATING ACTIVITIES	18		6,515			5,834

Cash flows from investing activities
Purchase of investments		(18,214)		(25,800)
Sale of investments		13,931		34,114
NET CASH (OUTFLOW)/INFLOW FROM		__________		__________
INVESTING ACTIVITIES			(4,283)			8,314

Cash flow from financing activities
Interest paid		(3,525)		(3,525)
Dividends paid		(3,413)		(3,280)
		__________		__________
NET CASH FROM FINANCING ACTIVITIES			(6,938)			(6,805)
			__________			__________
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS			(4,706)			7,343
Cash and cash equivalents at 1 April 2008			9,609			2,266
			__________			__________
Cash and cash equivalents at 31 March 2009			4,903			9,609
			__________			__________

NOTES TO FINANCIAL STATEMENTS:

1	Accounting policies The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the International Accounting Standards Committee (IASC) that remain in effect, and to the extent that they have been adopted by the European Union. The functional and reporting currency of the Group is pounds sterling because that is the currency of the primary economic environment in which the Group operates.

	(a) Basis of preparation The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial assets. The principal accounting policies adopted are set out below. Where presentational guidance set out in the Statement of Recommended Practice Financial Statements of Investment Trust Companies and Venture Capital Trusts (the SORP) issued by the Association of Investment Companies (AIC) in January 2009 (and adopted early) is consistent with the requirements of IFRSs, the directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP. The directors are of the opinion that the Group is engaged in a single segment of business, being investment business.

	(b) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and the entity controlled by the Company (its subsidiary). Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation. Audax Properties plc, a wholly owned subsidiary of the Company, charges expenses wholly to income. On consolidation, however, an adjustment is made to charge 70% of the investment management fee paid by Audax Properties plc to capital. The allocation has no effect on the total return of the Company or the Group.

	(c) Presentation of income statement In order to reflect better the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the income statement between items of a revenue and capital nature has been presented alongside the income statement. In accordance with the Company's status as a UK investment company under section 833 of the Companies Act 2006, net capital returns may not be distributed by way of dividend. Additionally the net revenue is the measure that the directors believe to be appropriate in assessing the Company's compliance with certain requirements set out in section 842 of the Income and Corporation Taxes Act 1988.

	(d) Income Dividend income from investments is recognised as revenue for the period on an ex-dividend basis. Where no ex-dividend date is available, dividends receivable on or before the period end are treated as revenue for the period. Where the Group has elected to receive dividend income in the form of additional shares rather than cash, the amount of cash dividend foregone is recognised as income. Any excess in the value of shares received over the amount of cash dividend foregone is recognised as a gain in the income statement. Interest receivable from cash and short term deposits and interest payable is accrued to the end of the period. Rental and other income are recognised as earned.

	(e) Expenses and Finance Costs All expenses and finance costs are accounted for on an accruals basis. Expenses are presented as capital where a connection with the maintenance or enhancement of the value of investments can be demonstrated. In this respect, the investment management fees are allocated 30% to revenue and 70% to capital to reflect the Board's expectations of long term investment returns. Any performance fees payable are allocated to capital, reflecting the fact that, although they are calculated on a total return basis, they are expected to be attributable largely to capital performance. It is normal practice for investment trust companies to allocate finance costs to capital on the same basis as the investment management fee allocation. However as the Company has a significant exposure to property, and property companies do not charge finance costs to capital, the directors consider it inappropriate to allocate finance costs to capital.

	(f) Taxation Deferred tax is recognised in respect of all temporary differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or the right to pay less tax in the future have occurred at the balance sheet date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments. This is not the case for the subsidiary company and hence the Group where such provision is made, calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

	(g) Dividends payable Interim dividends are recognised as a liability in the period in which they are paid as no further approval is required in respect of such dividends. Final dividends are recognised as a liability only after they have been approved by shareholders in general meeting.

	(h) Investments All investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and derecognised on the trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are initially measured at fair value. Subsequent to initial recognition, investments are recognised at fair value through profit or loss. For listed investments, this is deemed to be bid market prices or closing prices for SETS stocks sourced from the London Stock Exchange. SETS is the London Stock Exchange electronic trading service covering most of the market including all FTSE 100 constituents and most liquid FTSE 250 constituents along with some other securities. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the income statement and are ultimately recognised in the retained earnings. In respect of investment properties, fair value is established by half-yearly professional valuation on an open market basis by King Sturge and Co, Chartered Surveyors and Valuers and in accordance with the RICS Valuation Standards.

	(i) Cash and cash equivalents Cash and cash equivalents comprises deposits held with banks.

	(j) Non - current liabilities All loans and borrowings are initially recognised at cost, being the fair value of the consideration received, less issue costs where applicable. After initial recognition, all interest-bearing loans and borrowings are subsequently measured at amortised cost. Amortised cost is calculated by taking into account any discount or premium on settlement. The costs of arranging any interest-bearing loans are capitalised and amortised over the life of the loan.

2 Statutory Financial Statements and Annual General Meeting

The financial information contained within this preliminary announcement does not constitute the Company's statutory financial statements as defined in Section 240 of the Companies Act 1985 for the years ended 31 March 2009 or 2008 but is derived from those financial statements. Statutory financial statements for 2008 have been delivered to the Registrar of Companies and those for 2009 will be delivered following the Company's Annual General Meeting which will be held at 7th Floor, 40 Princes Street, Edinburgh, EH2 2BY on Friday 10 July 2009 at 12.30 pm. The independent auditors' report in respect of the year ended 31 March 2008 was unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985.

The independent auditors have not yet reported on the financial statements to 31 March 2009. The preliminary announcement was approved by the Board of Directors on 18 May 2009.

3 Publication of Annual Report and Financial Statements

The Annual Report and Financial Statements will be posted to shareholders in June 2009 and copies will be available from the Manager, OLIM Limited, (www.olim.co.uk), Pollen House, 10/12 Cork Street, London, W1S 3NP or from the Secretary, Aberdeen Asset Management PLC, 7th Floor, 40 Princes Street, Edinburgh, EH2 2BY.