Interim Results

Aberdeen New Dawn Invest Trust PLC 20 December 2006 ABERDEEN NEW DAWN INVESTMENT TRUST PLC ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS For the six months ended 31 October 2006 Background I am reporting to you for the first time as Chairman of your Company on the performance over the six months under review. During this period, the net asset value of the Company fell 2.2% to 492.7p, underperforming the benchmark MSCI Asia Pacific ex-Japan Index, which fell 1.6%. Over the period, the net asset value total return was -1.1% and the benchmark total return was -1.6%, while the share price total return was -4.1%. At 30 April 2006, the Company's shares were trading at a premium of 2.5% to the net asset value, but by 31 October 2006 they were trading at a discount of -0.6%. As is our normal practice, there will be no interim dividend but we shall recommend a final dividend at our financial year-end. Overview During the past six months several Asian stock markets reached record highs (notwithstanding the regional index fall), driven by abundant liquidity and a gathering belief that the US economy would avoid an abrupt slowdown. However, in May there was a significant market correction led by concerns over potential oil-led inflation and a rising political temperature in the Middle East. This left emerging markets in general exposed to knee-jerk selling, and many markets fell sharply. Since then the US Federal Reserve has sketched a more benign picture of US economic activity and global imbalances seem to have subsided. Liquidity into the region has resumed, led principally from the Middle East and North America. China has continued to grow rapidly. Renewed efforts to curb lending and speculative investment have made little impact; as has a slowly appreciating Renminbi. India is growing at 9.2% year on year which is nearly the same rate as China and your Board is impressed by the sustainability of this underlying growth which has benefited from transparency as well as the legal and accountancy systems. India's weakness is its infrastructure, which will eventually constrain growth. Rising wages and costs are a symptom of an economy running close to full capacity and significant overheating in the property market is another warning sign. Singapore has been generating good growth thanks to a move into higher-end services, with a burgeoning financial services sector attracting capital from Europe - and investment interest now spilling into higher-end properties which has served us well. Meanwhile, businesses as different as oil rigs, banks and telecoms that have heeded the government's encouragement to go regional are finally generating attractive returns. Sadly, Taiwan and Korea have not been generating plaudits. Margin pressure has dampened the performance of key exporters and economic growth has been sluggish. Thailand, which saw a bloodless coup remove the prime minister, barely missed a beat. The market sees the junta as more likely to speed up public spending and deter the corruption that was Thaksin's undoing. There is obvious value in the market, which is probably Asia's cheapest in conventional terms. One strong market support in Southeast Asia is the commodities boom since core exports still include soft commodities. But the main beneficiary is mineral-rich Australia, where the economy appears increasingly bifurcated: the Western half, where mining is based, is seeing tearaway growth but the more populous states on the other side, being dependent on home equity-driven consumption, face the consequences of rising interest rates. Review In the period under review, we took partial profits in Korean auto manufacturer Hyundai Motors, Australian construction company Leighton Holdings, telecommunications firm China Mobile, and Korean electronics manufacturer Samsung Electronics, all on valuation grounds. We also sold out of our holding in Indonesian shoe retailer and manufacturer Sepatu Bata. The proceeds were used to top up various existing holdings, including Venture Corp, a Singapore-based company that is one of the world's best electronics contract manufacturers, and Jardine Strategic, one of Hong Kong's big trading houses, with interests in retail, property, hotels and auto distribution. We also switched the Australian listing of Rio Tinto to the UK listing, as the latter trades at a discount to the former, an anomaly we hope to be corrected in time. Three new holdings were purchased for the fund. We initiated positions in Hong Kong-based developer Hang Lung Properties and its holding company Hang Lung Group, which not only has a strong retail property portfolio and develops residential projects in Hong Kong, but is poised to capitalise on the growth in Chinese consumption through the development of large-scale shopping centres on the mainland. We also initiated a position in Singapore Telecommunications, one of the largest telecommunications services providers in the Asia Pacific region, with significant operations in Singapore and Australia, and growing contributions from its associates across the region, including India and Indonesia. Outlook With the exception perhaps of Chinese IPOs, there are few signs of the excesses in Asia one usually associates with a bull market. Companies are behaving cautiously. Policy makers do not face any obvious quandaries. True, interest rates have been rising - save in Indonesia - but the effects have been muted almost everywhere. There is room for spending to boost demand if required, and budgets have generally turned more expansive. The main risks therefore appear external. In recent weeks investors have reacted alternately with complacency and alarm at the regular feed of US economic data (which is still inconclusive). The upshot may be more volatility in markets globally. In Asia, the evidence from fund flows is that the more marginal foreign investors may not have returned after May's wobble. But institutional allocations to the region have been increasing for some years and a more variegated market ownership structure is welcome. Should stock markets stumble again as they did in the middle of the year, I have every confidence in your Manager. The Board shares my view that the Manager is right to emphasise price discipline at this juncture because conditions could tempt one to overpay for growth that may already be discounted. Our experience is that buying short-term performance can lead to nasty surprises later. As it is, we have a carefully constructed portfolio of sound, well-managed companies that have sustainable, cash-generating operations and sensible corporate strategies. A casual glance will show that the names are substantially the same as six months (or even a year or two) ago, which is reassuring. Current valuations appear reasonable and are supported by the positive long-term fundamentals in the region. Currently the Company's investments trade on a price /earnings multiple of 17.3 times for calendar year 2006 and 16.2 times for 2007, according to our Manager's estimates, with a weighted average debt/equity ratio of just 9%. Directorate As anticipated in the Annual Report, Jimmy West retired from the Board at the Annual General Meeting held in August. I would like to take this opportunity to thank Jimmy for his contribution to the Trust over the last 13 years and I will personally miss his advice. I am delighted to report that we have appointed David Shearer to the Board with effect from 1 January 2007 and he will also be Chairman of the Audit Committee. Alan Henderson Chairman 20 December 2006 INCOME STATEMENT (UNAUDITED) Six months ended Six months ended 31 October 2006 31 October 2005 Revenue Capital Total Revenue Capital Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 (Losses)/gains on held-at-fair-value - (2,703) (2,703) - 17,573 17,573 investments Income 2,155 - 2,155 1,857 - 1,857 Investment management fee (252) (252) (504) (197) (197) (394) Administrative expenses (272) (30) (302) (242) - (242) Exchange (losses)/gains (36) 357 321 26 (475) (449) ________ ________ ________ ________ ________ ________ Net return before finance costs and taxation 1,595 (2,628) (1,033) 1,444 16,901 18,345 Interest payable and similar charges (95) (95) (190) (80) (80) (160) ________ ________ ________ ________ ________ ________ Net return on ordinary activities before 1,500 (2,723) (1,223) 1,364 16,821 18,185 taxation Taxation on ordinary activities (437) 104 (333) (414) 83 (331) ________ ________ ________ ________ ________ ________ Return on ordinary activities after taxation 1,063 (2,619) (1,556) 950 16,904 17,854 ________ ________ ________ ________ ________ ________ Return per Ordinary share (pence): 4.19 (10.32) (6.13) 3.99 70.99 74.98 ________ ________ ________ ________ ________ ________ The total column of this statement represents the profit and loss account of the Company. No Statement of Total Recognised Gains and Losses has been prepared as all gains and losses have been reflected in the Income Statement. All revenue and capital items in the above statement derive from continuing operations. BALANCE SHEET As at As at As at 31 October 2006 31 October 2005 30 April 2006 (unaudited) (unaudited) (audited) Â£'000 Â£'000 Â£'000 Non-current assets Investments at fair value through profit or loss 131,759 106,432 134,766 _________ _________ _________ Current assets Debtors 464 227 423 Cash at bank and in hand 723 1,471 790 _________ _________ _________ 1,187 1,698 1,213 _________ _________ _________ Creditors: amounts falling due within one year Foreign currency loans (7,191) (7,535) (7,496) Other creditors (596) (1,150) (486) _________ _________ _________ (7,787) (8,685) (7,982) _________ _________ _________ Net current liabilities (6,600) (6,987) (6,769) _________ _________ _________ Total assets less current liabilities 125,159 99,445 127,997 Provision for liabilities and charges (77) (43) (90) _________ _________ _________ Net assets 125,082 99,402 127,907 _________ _________ _________ Capital and reserves Called-up share capital 6,347 6,172 6,347 Share premium account 17,955 14,834 17,955 Special reserve 14,138 14,138 14,138 Capital redemption reserve 10,207 10,207 10,207 Capital reserve - realised 11,978 6,606 7,067 Capital reserve - unrealised 59,919 43,364 67,449 Revenue reserve 4,538 4,081 4,744 _________ _________ _________ Equity Shareholders' funds 125,082 99,402 127,907 _________ _________ _________ Net asset value per Ordinary share (pence): 492.70 402.65 503.83 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (UNAUDITED) Six months ended 31 October 2006 Share Capital Capital Capital Share premium Special redemption reserve reserve Revenue capital account reserve reserve realised unrealised reserve Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Balance at 30 April 2006 6,347 17,955 14,138 10,207 7,067 67,449 4,744 127,907 Return on ordinary activities after - - - - 4,911 (7,530) 1,063 (1,556) taxation Dividend paid (Final 2006 - 5.0p) - - - - - - (1,269) (1,269) _____ ______ ______ _______ ______ _______ ______ _______ Balance at 31 October 2006 6,347 17,955 14,138 10,207 11,978 59,919 4,538 125,082 _____ ______ ______ _______ ______ _______ ______ _______ Six months ended 31 October 2005 Share Capital Capital Capital Share premium Special redemption reserve reserve Revenue capital account reserve reserve realised unrealised reserve Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Balance at 30 April 2005 5,852 9,777 14,138 10,207 7,025 26,041 4,301 77,341 Return on ordinary activities after - - - - (419) 17,323 950 17,854 taxation Dividend paid (Final 2005 - 4.0p; - - - - - - (1,170) (1,170) Special 2005 - 1.0p) Issue of Ordinary shares 320 5,057 - - - - - 5,377 _____ ______ ______ _______ ______ _______ ______ _______ Balance at 31 October 2005 6,172 14,834 14,138 10,207 6,606 43,364 4,081 99,402 CASH FLOW STATEMENT (UNAUDITED) Six months ended Six months ended 31 October 2006 31 October 2005 Â£'000 Â£'000 Net return on ordinary activities before finance costs and (1,033) 18,345 taxation Adjustment for: Losses/(gains) on investments at fair value through profit or 2,703 (17,573) loss Exchange (gains)/losses charged to capital (357) 475 (Increase)/decrease in accrued income (35) 326 Increase in other debtors - (4) Increase in creditors 42 48 Overseas withholding tax suffered (94) (102) Scrip dividends included in investment income (35) (15) ___________ ___________ Net cash inflow from operating activities 1,191 1,500 Net cash outflow from servicing of finance (194) (161) Corporation tax paid (182) - Net cash inflow/(outflow) from financial investment 315 (4,953) Equity dividends paid (1,269) (1,170) ___________ ___________ Net cash outflow before use of liquid resources and financing (139) (4,784) Net cash inflow from financing 20 5,378 ___________ ___________ (Decrease)/increase in cash (119) 594 ___________ ___________ Reconciliation of net cash flow to movements in net debt (Decrease)/increase in cash as above (119) 594 Exchange movements 357 (475) ___________ ___________ Movement in net debt in the period 238 119 Net debt at 1 May 2006 (6,706) (6,183) ___________ ___________ Net debt at 31 October 2006 (6,468) (6,064) ___________ ___________ Represented by: Cash at bank 723 1,471 Debt falling due within one year (7,191) (7,535) ___________ ___________ (6,468) (6,064) Notes to the Accounts 1. Accounting policies (a) Basis of accounting The accounts have been prepared under the historical cost convention, as modified to include the revaluation of investments and in accordance with applicable UK Accounting Standards and consistent with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies' (December 2005). They have also been prepared on the assumption that the approval as an investment trust will continue to be granted. The financial statements and the net asset value per share figures have been prepared in accordance with UK Generally Accepted Accounting Practice ('UK GAAP'). The interim accounts have been prepared using the same accounting policies as the preceding annual accounts. (b) Dividends payable Dividends are recognised in the period in which they relate. 2. Dividends Ordinary dividends on equity shares deducted from reserves are analysed below Six months ended Six months ended 31 October 2006 31 October 2005 Â£'000 Â£'000 2005 final dividend - 4.0p - 936 2005 special dividend - 1.0p - 234 2006 final dividend - 5.0p 1,269 - 1,269 1,170 In accordance with stated policy no interim dividend has been declared for the period (2005 - nil). Six months ended Six months ended 31 October 2006 31 October 2005 3. Return per share p p Revenue return 4.19 3.99 Capital return (10.32) 70.99 Total return (6.13) 74.98 The figures above are based on the following attributable assets: Â£'000 Â£'000 Revenue return 1,063 950 Capital return (2,619) 16,904 Total return (1,556) 17,854 Weighted average number of Ordinary shares 25,387,133 23,812,676 As at As at As at 4. Net asset value per share 31 October 2006 31 October 2005 30 April 2006 Attributable net assets (Â£'000) 125,082 99,402 127,907 Number of Ordinary shares in issue 25,387,133 24,687,133 25,387,133 Net asset value per Ordinary share (p) 492.70 402.65 503.83 5. Transaction costs During the six months ended 31 October 2006 expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within (losses)/gains on investments in the Income Statement. The total costs were as follows: Six months ended Six months ended 31 October 2006 31 October 2005 Â£'000 Â£'000 Purchases 30 23 Sales 14 13 44 36 6. The financial information in this report comprises non-statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 30 April 2006 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified under Section 235 of the Companies Act 1985. The interim accounts have been prepared using the same accounting policies as the preceding annual accounts. Aberdeen Asset Management PLC Secretaries 20 December 2006 Independent Review Report to Aberdeen New Dawn Investment Trust PLC Introduction We have been instructed by the Company to review the financial information for the six months ended 31 October 2006 which comprises the Income Statement, Balance Sheet, Reconciliation of Movements in Shareholders' Funds, Cash Flow Statement and the related notes that have been reviewed. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Listing Rules of the Financial Services Authority. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached. Directors' responsibilities The Interim Report, including the financial information contained therein, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report in accordance with the Listing Rules of the Financial Services Authority which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review Work Performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the UK. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with International Statements on Auditing (UK and Ireland) and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 31 October 2006. KPMG Audit Plc Chartered Accountants 20 December 2006 Edinburgh This information is provided by RNS The company news service from the London Stock Exchange ZFBQ

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