Interim Results
Witan Investment Trust PLC
01 August 2003
WITAN INVESTMENT TRUST PLC
EMBARGOED FOR RELEASE AT 7.00 AM ON FRIDAY 1 AUGUST 2003
31 July 2003
WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2003
Financial Highlights (per ordinary share)
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 June 2003 30 June 2002 31 December 2002
pence pence pence
Share price 282.0 352.5 261.5
Net asset value 323.6 382.6 307.6
Earnings 5.07 5.21 8.92
Dividends 3.70 3.65 8.10
Performance (per ordinary share)
6 months 12 months
% return % return
Share price 7.8 (20.0)
Net asset value 5.2 (15.4)
Benchmark* 5.6 (12.1)
* The benchmark comprises the FTSE All-Share Index and the FTSE World (ex UK)
Index in the proportion 60:40 (capital change only).
Dividend
An interim dividend of 3.70p (2002: 3.65p) per ordinary share will be paid on 5
September 2003 to shareholders registered on 15 August 2003. The ex-dividend
date will be 13 August 2003.
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2003
The Chairman's Statement:
Lord Faringdon's last message to shareholders as Chairman, in February this
year, was that 'hopefully most of the spin is out of the wicket'. How right that
statement has proved to be with markets now showing respectable gains from the
low point in March. I start my first communication to shareholders with
reference to the previous Chairman, as this statement by him underscores his
wisdom and his unique ability to communicate. He will be much missed.
The foundations of the rise in equity markets have not been built on better
economic data but on the resolution of international uncertainties and by modest
equity valuations, primarily with reference to the current very low levels of
interest rates. Pricing power and predictable earnings growth are the
ingredients that would stabilise the structure and restore confidence to
markets. In the UK and the US, together representing 79% of our assets, we have
experienced a corporate earnings setback alongside strong consumer spending and
a housing boom. Can we expect a reversal of this position, a corporate earnings
improvement while house prices ease? It is possible but seems somewhat unlikely,
particularly if interest rates start to rise on the US recovery predicted by
Alan Greenspan. Markets may therefore consolidate for a while, prior to a
further move upwards.
We are obviously pleased to be reporting a 5.2% increase in the net asset value
per share over the first six months of the year, although this may be of little
consolation as we still have some way to go to reach previous peaks. We can also
report a small increase in the interim dividend.
H M Henderson
31 July 2003
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2003
Statement of Total Return (incorporating the revenue account)
for the half year ended 30 June 2003
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 June 2003 30 June 2002 31 December 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Total capital gains/
(losses) from
investments - 55,503 55,503 - (163,753) (163,753) - (420,454) (420,454)
Income from fixed
asset
investments 20,103 - 20,103 21,151 - 21,151 36,034 - 36,034
Other interest
receivable and
similar income 1,455 - 1,455 1,024 - 1,024 2,376 - 2,376
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Gross revenue and
capital gains/
(losses) 21,558 55,503 77,061 22,175 (163,753) (141,578) 38,410 (420,454) (382,044)
Management fee (522) (1,568) (2,090) (509) (1,968) (2,477) (1,018) (3,057) (4,075)
Other administrative
expenses (1,352) - (1,352) (1,324) - (1,324) (2,341) - (2,341)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Net return/(loss)
on ordinary
activities before
interest payable and
taxation 19,684 53,935 73,619 20,342 (165,721) (145,379) 35,051 (423,511) (388,460)
Interest payable (1,269) (3,808) (5,077) (1,263) (3,790) (5,053) (2,535) (7,606) (10,141)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on
ordinary activities
before taxation 18,415 50,127 68,542 19,079 (169,511) (150,432) 32,516 (431,117) (398,601)
Taxation on net return
on
ordinary activities (671) - (671) (714) - (714) (1,071) - (1,071)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on
ordinary activities
after taxation 17,744 50,127 67,871 18,365 (169,511) (151,146) 31,445 (431,117) (399,672)
Dividends - preference
shares (42) - (42) (42) - (42) (83) - (83)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Attributable to the
ordinary
shareholders 17,702 50,127 67,829 18,323 (169,511) (151,188) 31,362 (431,117) (399,755)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Dividends - ordinary
shares
Interim payment
of 3.70p (2002:
3.65p) (12,861) - (12,861) (12,836) - (12,836) (12,822) - (12,822)
Final 2002: 4.45p - - - - - - (15,590) - (15,590)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(12,861) - (12,861) (12,836) - (12,836) (28,412) - (28,412)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Transfer to/(from)
reserves 4,841 50,127 54,968 5,487 (169,511) (164,024) 2,950 (431,117) (428,167)
========== ========== ========== ========== ========== ========== ========== ========== ==========
Return/(loss) per
ordinary share 5.07p 14.34p 19.41p 5.21p (48.20)p (42.99)p 8.92p (122.68)p (113.76)p
(note 1)
========== ========== ========== ========== ========== ========== ========== ========== ==========
The revenue columns of this statement represent the revenue accounts of the
Company.
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2003
Balance Sheet
at 30 June 2003
(Unaudited) (Unaudited) (Audited)
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Fixed asset investments
Listed in the United Kingdom (at market value) 694,755 807,483 690,176
Listed abroad (at market value) 515,635 615,678 454,346
Unquoted (at directors' valuation) 11,115 30,132 26,067
------------- ------------- ------------
1,221,505 1,453,293 1,170,589
------------- ------------- ------------
Current assets
Debtors 7,304 30,734 3,306
Cash at bank and short term deposits 67,161 25,186 68,806
------------- ------------- ------------
74,465 55,920 72,112
Creditors : amounts falling due within one year (19,781) (16,879) (18,267)
------------- ------------- ------------
Net current assets 54,684 39,041 53,845
------------- ------------- ------------
Total assets less current liabilities 1,276,189 1,492,334 1,224,434
Creditors: amounts falling due after more (144,216) (144,136) (144,176)
than one year
------------- ------------ ------------
Total net assets 1,131,973 1,348,198 1,080,258
======== ======== ========
Capital and reserves
Called-up share capital
Preference shares 2,555 2,555 2,555
Ordinary shares 87,260 87,921 87,585
Share premium 16,237 16,237 16,237
Other capital reserves
Redemption reserve 6,566 5,905 6,241
Capital reserve - realised 922,534 1,061,478 977,552
Capital reserve - unrealised 69,296 148,881 (32,596)
Revenue reserve 27,525 25,221 22,684
------------ ------------ ------------
Shareholders' funds (including non-equity 1,131,973 1,348,198 1,080,258
interests of £2,555,000)
============ ============ ============
Net asset value per ordinary share 323.6p 382.6p 307.6p
============ ============ ============
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2003
Cash Flow Statement
for the half year ended 30 June 2003
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 June 2003 30 June 2002 31 December 2002
£'000 £'000 £'000
Net cash inflow from operating activities 16,479 17,113 30,180
Net cash outflow from servicing of finance (5,077) (5,071) (10,147)
Net tax recovered 87 285 438
Net cash inflow/(outflow) from financial investment 6,571 (17,301) 35,586
Equity dividends paid (15,537) (15,298) (28,120)
Management of liquid resources - 5,000 (25,000)
------------ ------------ ------------
Net cash inflow/(outflow) before financing 2,523 (15,272) 2,937
Net cash outflow from financing (note 2) (3,253) - (3,797)
------------ ------------ ------------
Decrease in cash (730) (15,272) (860)
------------ ------------ ------------
Reconciliation of operating revenue to net cash inflow from operating activities
Net revenue before interest payable and taxation 19,684 20,342 35,051
Increase in accrued income (846) (703) (253)
Increase in debtors (66) (33) (43)
Increase/(decrease) in creditors 133 399 (137)
Management expenses charged to capital (1,568) (1,968) (3,057)
Tax deducted at source (2) - (10)
Overseas withholding tax suffered (815) (924) (1,371)
Scrip dividends included in investment income (41) - -
------------ ------------ ------------
16,479 17,113 30,180
------------ ------------ ------------
Reconciliation of net cash flow to movement in net debt
Decrease in cash as above (730) (15,272) (860)
Cash (inflow)/outflow from management of liquid resources - (5,000) 25,000
------------ ------------ ------------
Change in net debt resulting from cash flows (730) (20,272) 24,140
Exchange movements (915) (473) (1,265)
Increase in valuation of debt (40) (39) (79)
------------ ------------ ------------
Movement in net debt in the period (1,685) (20,784) 22,796
Net debt at the beginning of the period (75,370) (98,166) (98,166)
------------ ------------ ------------
Net debt at the end of the period (77,055) (118,950) (75,370)
------------ ------------ ------------
Represented by:
Bank balances and short term deposits 67,161 25,186 68,806
Debt falling due after more than one year (144,216) (144,136) (144,176)
------------ ------------ ------------
(77,055) (118,950) (75,370)
------------ ------------ ------------
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2003
Notes
1. Return/(loss) per ordinary share
The revenue return per ordinary share is based on the earnings attributable
to the ordinary shares of £17,702,000 (half year ended 30 June 2002:
£18,323,000; year ended 31 December 2002: £31,362,000) and on the weighted
average number of ordinary shares of 25p each in issue during the period of
349,488,914 (half year ended 30 June 2002: 351,682,244; year ended
31 December 2002: 351,412,865).
The capital return per ordinary share is based on the net capital gains of
£50,127,000 (half year ended 30 June 2002: net losses of £169,511,000; year
ended 31 December 2002: net losses of £431,117,000) and on the weighted
average number of ordinary shares in issue, as stated above.
2. Issue share capital
At 30 June 2003 there were 349,038,086 ordinary shares in issue (30 June
2002: 351,682,244; 31 December 2002: 350,338,086).
During the half year ended 30 June 2003 the Company bought 1,300,000 of its
own issued ordinary shares in the market for cancellation (half year ended
30 June 2002: none; year ended 31 December 2002: 1,344,158). The cost of the
share buy-backs, including stamp duty, amounted to £3,253,000 (year ended 31
December 2002: £3,797,000).
3. Dividends
The directors have declared an interim dividend of 3.70p (2002: 3.65p) per
ordinary share, payable on 5 September 2003 to shareholders registered on 15
August 2003. The shares will be quoted ex-dividend on 13 August 2003.
4. Interim accounts
The interim accounts have been neither audited nor reviewed by the auditors.
5. Comparative information
The financial information contained in this interim statement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The financial information for the half year ended 30 June 2003 and for
the half year ended 30 June 2002 has not been audited.
The figures and financial information for the year ended 31 December 2002
are extracted from the latest published accounts and do not constitute
statutory accounts for that year. Those accounts have been delivered to the
Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either section 237(2) or
237(3) of the Companies Act 1985.
6. Interim Report
The interim report will be sent to shareholders in August 2003 and copies
will be available thereafter from the Secretary at the Company's registered
office, 4 Broadgate, London EC2M 2DA.
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2003
For further information, please contact:
James Robinson
Witan Investment Trust plc
Tel: 020 7818 4312
James Budden
Witan Investment Trust plc
Tel: 020 7818 3121
Gordon Puckey/Eleanor Clarke
Quill Communications
Tel: 020 7763 6975/6973
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