Interim Results

Witan Investment Trust PLC 30 July 2004 WITAN INVESTMENT TRUST PLC 30 July 2004 WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2004 Financial Highlights (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 December 2003 in pence in pence in pence Share price 302.5 282.0 303.0 Net asset value per ordinary 363.5 323.6 358.2 share Earnings per ordinary share 5.11 5.07 8.98 Dividends per ordinary share 3.70 3.70 8.30 Performance 6 months 12 months % return % return Share price (0.2) 7.3 Net asset value per ordinary 1.5 12.3 share Benchmark* 1.2 12.3 * 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 (2003: 3.70p) per ordinary share will be paid on 3 September 2004 to shareholders registered on 13 August 2004. The ex-dividend date will be 11 August 2004. -MORE- -2- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2004 The Chairman's Statement: I am pleased to report that your Trust has outperformed its benchmark in NAV terms over the six months to June 2004, returning 1.5% in capital terms against a benchmark return of 1.2%. The return is obviously modest in absolute terms but taking a twelve-month perspective the net asset value per share has risen by a respectable 12.3%. We shall be writing to all shareholders within the next two months concerning the selection and appointment of the new investment managers and the repositioning of the underlying investments. Your Board is very enthusiastic about these changes, the announcement of which will mark the culmination of a considerable amount of work. We believe that Witan's new multi-manager structure offers shareholders the prospect of stronger relative returns from equity investment, within a modern format. The Board has managed carefully the costs associated with the change of structure but these, combined with the increase in management fees resulting from higher markets over the last twelve months, have put some pressure on the revenue account. Further, the UK investment portfolio, which is the main driver of income generation, has shown negligible income growth in the period under review. Therefore your Board considers it prudent to maintain the level of interim dividend distribution for the current year, and, accordingly, we report an unchanged interim dividend of 3.70p per ordinary share. The announcement last October of fundamental changes to the management of Witan, and the enormous amount of resulting work, have one aim, namely to improve the risk/reward ratio of your Trust. This means that we seek to retain the maximum upside potential when equity markets rise and to limit the downside when they fall. This is not an exact science, nor indeed guaranteed, but your Board believes strongly that diversification by manager, by investment style and by geography are powerful tools to help us achieve this goal. -MORE- -3- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2004 Statement of Total Return (incorporating the revenue account) (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 December 2003 Revenue Capital Total Revenue Capital Total Revenue Capital Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Total capital gains from investments - 16,238 16,238 - 55,503 55,503 - 180,470 180,470 Income from fixed asset investments 20,240 - 20,240 20,103 - 20,103 36,068 - 36,068 Other interest receivable and similar income 1,290 - 1,290 1,455 - 1,455 2,576 - 2,576 --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- Gross revenue and capital gains 21,530 16,238 37,768 21,558 55,503 77,061 38,644 180,470 219,114 Management fee (563) (1,686) (2,249) (522) (1,568) (2,090) (1,059) (3,175) (4,234) Other administrative expenses (1,607) - (1,607) (1,352) - (1,352) (2,540) - (2,540) --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- Net return on ordinary activities before interest payable and taxation 19,360 14,552 33,912 19,684 53,935 73,619 35,045 177,295 212,340 Interest payable (1,268) (3,805) (5,073) (1,269) (3,808) (5,077) (2,532) (7,599) (10,131) --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- Net return on ordinary activities before taxation 18,092 10,747 28,839 18,415 50,127 68,542 32,513 169,696 202,209 Taxation on net return on ordinary activities (680) - (680) (671) - (671) (1,151) - (1,151) --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- Net return on ordinary activities after taxation 17,412 10,747 28,159 17,744 50,127 67,871 31,362 169,696 201,058 Dividends - preference shares (42) - (42) (42) - (42) (83) - (83) --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- Attributable to the ordinary shareholders 17,370 10,747 28,117 17,702 50,127 67,829 31,279 169,696 200,975 --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- Dividends - ordinary shares Interim payment of 3.70p (2003: 3.70p) (12,378) - (12,378) (12,861) - (12,861) (12,832) - (12,832) Final 2003: 4.60p - - - - - - (15,802) - (15,802) --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- (12,378) - (12,378) (12,861) - (12,861) (28,634) - (28,634) --------- --------- --------- --------- --------- ---------- ---------- ---------- ---------- Transfer to reserves 4,992 10,747 15,739 4,841 50,127 54,968 2,645 169,696 172,341 ========= ========= ========= ========= ========= ========= ========= ========== ========== Return per ordinary share (note 1) 5.11p 3.16p 8.27p 5.07p 14.34p 19.41p 8.98p 48.70p 57.68p ========= ========= ========= ========= ========= ========= ========= ========== ========== The revenue columns of this statement represent the revenue accounts of the Company. -MORE- -4- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2004 Balance Sheet (Unaudited) (Unaudited) (Audited) 30 June 2004 30 June 2003 31 December 2003 Â£'000 Â£'000 Â£'000 Fixed asset investments Listed in the United Kingdom (at market value) 759,485 694,755 776,212 Listed abroad (at market value) 546,341 515,635 545,922 Unquoted (at directors' valuation) 11,632 11,115 10,573 ------------- ------------- ------------ 1,317,458 1,221,505 1,332,707 ------------- ------------- ------------ Current assets Debtors 11,179 7,304 6,802 Cash at bank and short term deposits 70,964 67,161 56,435 ------------- ------------- ------------ 82,143 74,465 63,237 Creditors : amounts falling due within one year (18,729) (19,781) (18,750) ------------- ------------- ------------ Net current assets 63,414 54,684 44,487 ------------- ------------- ------------ Total assets less current liabilities 1,380,872 1,276,189 1,377,194 Creditors: amounts falling due after more (144,295) (144,216) (144,255) than one year ------------- ------------- ------------ Total net assets 1,236,577 1,131,973 1,232,939 ============= ============= ============ Capital and reserves Called-up share capital Preference shares 2,555 2,555 2,555 Ordinary shares 84,880 87,260 85,880 Share premium 16,237 16,237 16,237 Other capital reserves Redemption reserve 8,946 6,566 7,946 Capital reserve - realised 908,453 922,534 907,689 Capital reserve - unrealised 185,185 69,296 187,303 Revenue reserve 30,321 27,525 25,329 ------------ ------------ ------------ Shareholders' funds (including non-equity 1,236,577 1,131,973 1,232,939 interests of Â£2,555,000) ============= ============= ============ Net asset value per ordinary share 363.5p 323.6p 358.2p ============= ============= ============ -MORE- -5- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2004 Cash Flow Statement (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 June 2004 30 June 2003 31 December 2003 Â£'000 Â£'000 Â£'000 Net cash inflow from operating activities 15,795 16,479 29,852 Net cash outflow from servicing of finance (5,076) (5,077) (10,144) Net tax recovered 31 87 190 Net cash inflow from financial investment 32,297 6,571 18,001 Equity dividends paid (15,616) (15,537) (28,422) Management of liquid resources (note 4) (10,000) - - ------------ ------------ ------------ Net cash inflow before financing 17,431 2,523 9,477 Net cash outflow from financing (note 2) (12,101) (3,253) (19,660) ------------ ------------ ------------ Increase/(decrease) in cash 5,330 (730) (10,183) ------------ ------------ ------------ Reconciliation of operating revenue to net cash inflow from operating activities Net revenue before interest payable and taxation 19,360 19,684 35,045 Increase in accrued income (906) (846) (530) Decrease/(increase) in debtors 37 (66) (27) (Decrease)/increase in creditors (278) 133 149 Management expenses charged to capital (1,686) (1,568) (3,175) UK income tax deducted at source - (2) (4) Overseas withholding tax suffered (732) (815) (1,360) Scrip dividends included in investment income - (41) (246) ------------ ------------ ------------ 15,795 16,479 29,852 ------------ ------------ ------------ Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 5,330 (730) (10,183) Cash outflow from management of liquid resources (note 4) 10,000 - - ------------ ------------ ------------ Change in net debt resulting from cash flows 15,330 (730) (10,183) Exchange movements (801) (915) (2,188) Increase in valuation of debt (40) (40) (79) ------------ ------------ ------------ Movement in net debt in the period 14,489 (1,685) (12,450) Net debt at the beginning of the period (87,820) (75,370) (75,370) ------------ ------------ ------------ Net debt at the end of the period (73,331) (77,055) (87,820) ------------ ------------ ------------ Represented by: Cash at bank and short term deposits 70,964 67,161 56,435 Debt falling due after more than five years (144,295) (144,216) (144,255) ------------ ------------ ------------ (73,331) (77,055) (87,820) ------------ ------------ ------------ -MORE- -6- WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2004 Notes 1. Return per ordinary share The revenue return per ordinary share is based on the earnings attributable to the ordinary shares of Â£17,370,000 half year ended 30 June 2003: Â£17,702,000; year ended 31 December 2003: Â£31,279,000) and on the weighted average number of ordinary shares of 25p each in issue during the period of 339,983,536 (half year ended 30 June 2003: 349,488,914; year ended 31 December 2003: 348,414,853). The capital return per ordinary share is based on the net capital gains of Â£10,747,000 (half year ended 30 June 2003: Â£50,127,000; year ended 31 December 2003: Â£169,696,000) and on the weighted average number of ordinary shares in issue, as stated above. 2. Issue share capital At 30 June 2004 there were 339,518,086 ordinary shares in issue (30 June 2003: 349,038,086; 31 December 2003: 343,518,086). During the half year ended 30 June 2004 the Company bought 4,000,000 of its own issued ordinary shares in the market for cancellation (half year ended 30 June 2003: 1,300,000; year ended 31 December 2003: 6,820,000). The cost of the share buy-backs, including stamp duty, amounted to Â£12,101,000 (half year ended 30 June 2003: Â£3,253,000; year ended 31 December 2003: Â£19,660,000). 3. Interim dividend The directors have declared an interim dividend of 3.70p (2003: 3.70p) per ordinary share, payable on 3 September 2004 to shareholders registered on 13 August 2004. The shares will be quoted ex-dividend on 11 August 2004. 4. Cash Flow Statement The figure for the management of liquid resources represents the net purchases and sales of certificates of deposit (CDs) and the placing of deposits at various banks, usually on a short term basis. 5. Interim accounts The interim accounts have been neither audited nor reviewed by the auditors. 6. 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 2004 and for the half year ended 30 June 2003 has not been audited. The figures and financial information for the year ended 31 December 2003 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. - MORE - - 7 - WITAN INVESTMENT TRUST PLC Unaudited Interim Results for the Half Year ended 30 June 2004 7. Interim report The interim report will be sent to shareholders in August 2004 and copies will be available thereafter from the Secretary at the Company's registered office, 4 Broadgate, London EC2M 2DA. -ENDS- For further information, please contact: James Budden Witan Investment Trust plc Tel: 020 7818 3121 Gordon Puckey/Eleanor Clarke Quill Communications Tel: 020 7763 6975/6973 This information is provided by RNS The company news service from the London Stock Exchange

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