Interim Results
THE THROGMORTON TRUST PLC
INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 31 MAY 2005
KEY POINTS
• Continued Strong Outperformance against FTSE SmallCap Index
• Net Asset Value per Ordinary Share at 31 May 2005, 151.59p (with prior
charges at market value, 144.28p)
• Interim Dividend 0.5p (2004 - 0.5p)
NET ASSET VALUE
31.05.05 30.11.04 Change
The Throgmorton Trust PLC
- prior charges at par 151.59p 135.37p +12.0%
- prior charges at market 144.28p 129.56p +11.4%
value
Share Price 123.00p 110.25p +11.6%
FTSE SmallCap (ex IC) 2,794.6 2,671.5 +4.6%
FTSE All-Share 2,483.4 2,345.2 +5.9%
CHAIRMAN'S STATEMENT
In my first statement as Chairman of The Throgmorton Trust, I am pleased to say
that the portfolio performed well in both absolute and relative terms. In the
six months to May 2005 the NAV rose by 11.58% compared with a rise of 4.61% in
our benchmark FTSE Small Cap (ex Investment Companies) Index.
Your Board has been concerned about the discount in the share price against NAV
which, despite the excellent long term performance of the Trust, has remained
higher than we would want. Accordingly we have adopted a more active policy of
buying in shares when we feel the discount, after adjusting for the market
price of the debt, has reached inappropriate levels in comparison with other
comparable funds and in the light of market conditions. The policy has resulted
in our buying in 34.4 million shares during the period under review. These
purchases of shares have enhanced the NAV per share by 1.62%.
Looking ahead, there are a number of uncertainties hanging over markets at the
present time. The twin deficits in the US remain a worry but the US economy
continues to grow, albeit at a lower level. Although we are seeing a slow down
in world economies, we do not anticipate a recession. During the summer we
expect a period of consolidation but would anticipate that markets improve in
the last quarter of the year and that a carefully selected portfolio of smaller
companies will prove a rewarding investment.
Richard Bernays
Chairman
14 July 2005
The Throgmorton Trust PLC
Interim Revenue Statement
Six months to Six months to Full year to
31 May 2005 31 May 2004 30 Nov 2004
£000s £000s £000s
(unaudited) (unaudited) (audited)
Income from fixed asset investments
Franked income 2,333 2,582 6,386
Unfranked income 95 134 232
Dividends from subsidiary 200 250 600
undertakings
2,628 2,966 7,218
Other income
Interest receivable 266 76 147
Sundry income 43 36 63
309 112 210
Total income 2,937 3,078 7,428
Management fee (713) (654) (1,333)
Administration expenses (234) (188) (382)
Interest payable (988) (1,076) (2,136)
Net revenue from ordinary 1,002 1,160 3,577
activities before taxation
Tax on net revenue from ordinary - - -
activities
Net revenue from ordinary 1,002 1,160 3,577
activities after taxation
Dividends
Ordinary shares - Prior Year 249 - -
Adjustment*
- Interim 0.5p (0.5p) (977) (1,149) (1,149)
- Final - (1.10p) - - (2,527)
(728) (1,149) (3,676)
Net revenue retained 274 11 (99)
Revenue reserve brought forward 3,350 3,449 3,449
Revenue reserve carried forward 3,624 3,460 3,350
Earnings per share (Basic) 0.47p 0.50p 1.55p
* See note 4
The Throgmorton Trust PLC
Summarised Balance Sheet
31 May 2005 31 May 2004 30 Nov 2004
£000s £000s £000s
(unaudited) (unaudited) (audited)
Fixed asset investments
Portfolio investments 317,535 294,275 344,035
Subsidiary undertakings 2,429 2,754 2,535
319,964 297,029 346,570
Current assets
Debtors 2,967 5,386 2,456
Cash at bank 9,933 1,070 123
12,900 6,456 2,579
Creditors - due within 1 year
Creditors (4,549) (4,004) (5,924)
Total assets less current liabilities 328,315 299,481 343,225
Creditors - due after 1 year:
Debenture stock (17,169) (19,094) (17,194)
Loan from group company (15,000) (15,000) (15,000)
(32,169) (34,094) (32,194)
296,146 265,387 311,031
Capital and reserves
Share capital 9,768 11,488 11,488
Share premium 35,272 35,272 35,272
Revenue reserves 3,624 3,460 3,350
Other reserves 247,482 215,167 260,921
Total shareholders' funds 296,146 265,387 311,031
Net Asset Value per ordinary share 151.59p 115.51p 135,37p
Net Asset Value Adjusted for 'Fair 144.28p 110.18p 129.56p
Value' of Debt
Number of ordinary shares in issue 195,355,869 229,758,869 229,758,869
The Throgmorton Trust PLC
Statement of Total Recognised Gains and Losses
Six Months to 31 May 2005
Revenue Capital Total
£000s £000s £000s
(unaudited) (unaudited) (unaudited)
Realised gains and losses - 41,170 41,170
Unrealised gains and losses - (8,068) (8,068)
Income 2,937 - 2,937
Investment management fee (713) (713) (1,426)
Other expenses (234) - (234)
Net return before finance costs and 1,990 32,389 34,379
taxation
Interest payable and similar (988) (953) (1,941)
charges
Premium paid on repurchase of - (9) (9)
debenture stock
Return on ordinary activities 1,002 31,427 32,429
before taxation
Tax on ordinary activities - - -
Return on ordinary activities after
taxation
attributable to equity shareholders 1,002 31,247 32,429
Dividends in respect of equity
shares
Prior Year Adjustment* 249 - -
Interim Dividend (977) - -
(728) - -
Transfer to/(from) reserves 274 31,247 31,701
Return per ordinary share (Basic) 0.47p 14.73p 15.20p
* See note 4
The Throgmorton Trust PLC
Statement of Total Recognised Gains and Losses - continued
Six Months to 31 May 2004
Revenue Capital Total
£000s £000s £000s
(unaudited) (unaudited) (unaudited)
Realised gains and losses - 14,037 14,037
Unrealised gains and losses - 11,564 11,564
Income 3,078 - 3,078
Investment management fee (654) (654) (1,308)
Other expenses (188) - (188)
Net return before finance costs and 2,236 24,947 27,183
taxation
Interest payable and similar (1,076) (1,013) (2,089)
charges
Premium paid on repurchase of - (8) (8)
debenture stock
Return on ordinary activities 1,160 23,926 25,086
before taxation
Tax on ordinary activities - - -
Return on ordinary activities after
taxation
attributable to equity shareholders 1,160 23,926 25,086
Dividends in respect of equity (1,149) - (1,149)
shares
Transfer to/(from) reserves 11 23,926 23,937
Return per ordinary share (Basic) 0.50p 10.36p 10.86p
The Throgmorton Trust PLC
Statement of Total Recognised Gains and Losses - continued
Full Year to 30 November 2004
Revenue Capital Total
£000s £000s £000s
(audited) (audited) (audited)
Realised gains and losses - 29,830 29,830
Unrealised gains and losses - 43,880 43,880
Income 7,428 - 7,428
Investment management fee (1,333) (1,333) (2,666)
Other expenses (382) - (382)
Net return before finance costs and 5,713 72,377 78,090
taxation
Interest payable and similar (2,136) (2,014) (4,150)
charges
Premium paid on repurchase of - (683) (683)
debenture stock
Return on ordinary activities 3,577 69,680 73,257
before taxation
Tax on ordinary activities - - -
Return on ordinary activities after
taxation
attributable to equity shareholders 3,577 69,680 73,257
Dividends in respect of equity (3,676) - (3,676)
shares
Transfer to/ (from) reserves (99) 69,680 69,581
Return per ordinary share (Basic) 1.55p 30.25p 31.25p
The Throgmorton Trust PLC
Cash Flow Statement
Six months Six months to Full year to
to
31 May 2005 31 May 2004 30 Nov 2004
£000s £000s £000s
(unaudited) (unaudited) (audited)
Operating activities
Cash received from investments 2,467 2,703 6,974
Interest received 266 76 147
Underwriting commission 19 50 52
Management fee (725) (638) (1,285)
Cash paid to and on behalf of (69) (48) (98)
directors
Other cash payments (102) (153) (329)
Net cash inflow from operating 1,856 1,990 5,461
activities
Servicing of finance
Interest paid - revenue (987) (1,076) (2,136)
Taxation
Taxation recovered - 8 8
Capital expenditure and financial
investment
Net sales of investments 59,490 7,212 9,436
Capital management fee (725) (638) (1,285)
Interest charged to capital (953) (1,013) (2,014)
Net payments from subsidiaries 27 307 100
Net cash inflow from investing 57,839 5,868 6,237
activities
Dividends
Dividends paid - equity shares (2,278) (2,308) (3,456)
Net cash inflow before financing 56,430 4,482 6,114
Financing
Repurchase of ordinary shares (46,586) (2,005) (2,010)
Repurchase of debenture stock (34) (34) (2,608)
Net cash outflow from financing (46,620) (2,039) (4,618)
Increase in cash 9,810 2,443 1,496
The Throgmorton Trust PLC
Notes
1. The Trust's figures for the six months to 31 May 2005 and the comparative
figures for the corresponding period in the previous financial year are
unaudited; those for the year to 30 November 2004 are based on the Trust's
accounts for that period, which carry an unqualified report from the
auditors and have been filed with the Registrar of Companies.
2. In accordance with Financial Reporting Standard 16 Current Taxation, UK
dividend income has been shown net of its attributable tax credits.
3. Management fees payable and finance costs of debt are each currently
allocated 50% to capital and 50% to revenue.
4. The directors have declared an interim dividend of 0.5p per share (2004 -
0.5p) payable on 19 August 2005 to shareholders on the register at the close of
business on 22 July 2005. Due to share buybacks which took place between the
date that the accounts as at 30 November 2004 were signed and the ex-dividend
dates of the annual dividend shown in those accounts, the actual dividend paid
was less than that accrued. The benefit of the reduced dividend paid is
reflected in the current period.
5. The net asset value per ordinary 5p share (deducting prior charges at par
value) is based on the shares in issue, the market value of listed investments
and other net assets and liabilities. In accordance with the AITC
recommendations, the Trust has published net asset values with prior charges
valued at 'fair value' in addition to the net asset values with prior charges
valued at par.
6. Copies of the 2005 annual report and further copies of these interim results
are available from the Trust's registered office, 155 Bishopsgate, London EC2M
3XJ.
7. The Trust's balance sheets as at 31 May 2005, 31 May 2004 and 30 November
2004 are shown in summary form and have been extracted from unaudited and
audited accounts respectively as described in Note 1.
8. Group accounts have not been prepared, as in the opinion of the directors,
the inclusion of the remaining subsidiary undertakings, taken together, is not
material for the purpose of giving a true and fair view.