Interim Results
Finsbury Technology Trust PLC
15 July 2003
Tuesday, 15 July 2003
Finsbury Technology Trust PLC
Preliminary results for the half year ended 31 May 2003
Finsbury Technology Trust PLC today announces preliminary results for the half
year ended 31 May 2003.
Half year ended Year ended
31 May 2003 30 November % Increase /
2002 (decrease)
(unaudited) (audited)
Shareholders' Funds (£m) 53.4 49.8 7.2
Net asset value per ordinary share 193.2 180.3 7.2
(p)
Share Price (p) 153.5 171.0 -10.2
Discount (%) 20.5 5.2 -
Benchmark 1,256 1,286 -2.3
No interim dividend is proposed (2002: nil)
For and on behalf of Close Finsbury Asset Management Limited - Secretary
15 July 2003
- ENDS -
Finsbury Technology Trust PLC
The following are attached:
* Chairman's Statement * Consolidated Cash Flow Statement
* Consolidated Statement of Total * Notes to the interim financial
Return statement
* Consolidated Balance Sheet
For further information please contact:
Alastair Smith, Close Finsbury Asset Management Ltd 020 7426 6240
Fiona Harris, Quill Communications 020 7763 6970
Michael Bourne, Reabourne Technology Investment
Management Ltd 020 7426 6290
Finsbury Technology Trust PLC
Chairman's Statement
Performance
During the six months ended 31 May 2003 the Company's net asset value per share
(NAV) increased from 180.3p to 193.2p, an increase of 7.2%. This compares with a
decline of 2.3% in the MSCI World Index (sterling adjusted without dividends
reinvested), which is the Company's benchmark index.
The share price fell from 171p to 153.5p, a fall of 10.2%. This reflected poor
sentiment towards the technology sector as a whole over much of the period and
resulted in a widening of the share price discount.
Since the period end the net asset value per share has increased by 14% from
193.2p to 219.6p as at 11 July 2003 and the mid market share price has increased
by 21% over the same period from 153.5p to 186.00p. The share price increase
reflects the gain in net asset value together with a narrowing in the share
price discount as the outlook for the technology sector improves.
Results and Dividend
The total return for the six months ended 31 May 2003 was 12.9p per share (2002:
deficit of 78.6p per share). This was made up of a revenue deficit of 1.4p per
share (2002: 1.7p) and a capital return of 14.3p per share (2002: deficit of
76.9p per share).
The investments making up the Company's investment portfolio typically provide a
very low yield and accordingly no dividend is recommended in respect of the six
months ended 31 May 2003.
Review of the period and outlook
The period under review saw a recovery in technology markets, particularly over
the months of April and May 2003. This recovery was against a background of more
buoyant conditions in global stock markets generally since the end of the
military conflict in the Middle East during which your board maintained its
policy of being fully invested in technology shares. Of particular note was the
recovery in the biotechnology sector which saw a number of new products approved
following the appointment of the new Federal Drugs Administration commissioner
in the US.
The remainder of the current financial year to 30 November 2003 is looking more
encouraging and interest in the technology sector is returning. The sector as a
whole should benefit from reduced cost structures and improving demand outlook
for technology generally. The period also saw an increase in merger and
acquisition activity which is a sign that business conditions are stabilising.
Finsbury Technology Trust PLC
Chairman's Statement (continued)
Your Board remains positive as to the outlook for the global technology market
and continues to believe that it will provide good returns to the long-term
investor.
Bryan Lenygon
Chairman
15 July 2003
Finsbury Technology Trust PLC
Statement of Total Return
Incorporating the revenue account for the six months ended 31 May 2003
(unaudited) (unaudited) (audited)
Half year ended Half year ended Year ended
31 May 2003 31 May 2002 30 November 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
----------- ------- ------- ------- ------- ------ ------- ------- ------- -------
Gain/(loss) - 4,011 4,011 - (21,173) (21,173) - (38,213) (38,213)
on
investments
Exchange - (69) (69) - (52) (52) - (55) (55)
losses on
currency
balances
Income (note 80 - 80 158 - 158 327 - 327
2)
Investment (249) - (249) (405) - (405) (666) - (666)
management
fees (note 4)
Other (192) - (192) (228) - (228) (427) - (427)
expenses ------- ------- ------- ------- ------ ------- ------- ------- -------
-----------
Net (loss)/ (361) 3,942 3,581 (475) (21,225) (21,700) (766) (38,268) (39,034)
return
before
finance costs
and
taxation
Interest (13) - (13) (3) - (3) (12) - (12)
payable and ------- ------- ------- ------- ------ ------- ------- ------- -------
similar
charges
-----------
(Loss)/return (374) 3,942 3,568 (478) (21,225) (21,703) (778) (38,268) (39,046)
on ordinary
activities
before
taxation
Taxation (3) - (3) (4) - (4) (11) - (11)
charge on ------- ------- ------- ------- ------ ------- ------- ------- -------
ordinary
activities
-----------
(Loss)/return (377) 3,942 3,565 (482) (21,225) (21,707) (789) (38,268) (39,057)
on ordinary
activities
after
taxation
Dividend on - - - - - - - - -
ordinary
shares
----------- ------- ------- ------- ------- ------ ------- ------- ------- -------
Transfer (377) 3,942 3,565 (482) (21,225) (21,707) (789) (38,268) (39,.057)
(from)/to
reserves
----------- ------- ------- ------- ------- ------ ------- ------- ------- -------
(Loss)/return (1.4)p 14.3p 12.9p (1.7)p (76.9)p (78.6)p (2.9)p (138.5)p (141.4)p
per ordinary
share -
pence
(note 3)
----------- ------- ------- ------- ------- ------ ------- ------- ------- -------
Finsbury Technology Trust PLC
Balance Sheet
As at 31 May 2003
(unaudited) (unaudited) (audited)
31 May 2003 31 May 2002 30 November
2002
£000 £000 £000
-------------------- ----------- ------------ -------------
Fixed asset investments 53,239 67,282 50,053
-------------------- ----------- ------------ -------------
Current assets
Debtors 346 64 315
Cash at bank 141 889 704
-------------------- ----------- ------------ -------------
487 953 1,019
-------------------- ----------- ------------ -------------
Creditors
Amounts falling due within one (373) (1,097) (1,284)
year
Net current assets/(liabilities) 114 (144) (265)
-------------------- ----------- ------------ -------------
Net assets 53,353 67,138 49,788
-------------------- ----------- ------------ -------------
Capital
Called up share capital 6,904 6,904 6,904
Share premium account 23,488 23,488 23,488
Capital reserve - realised 57,756 65,191 58,264
Capital reserves - unrealised (28,550) (22,884) (33,000)
Revenue reserve (6,245) (5,561) (5,868)
-------------------- ----------- ------------ -------------
Total shareholders' funds 53,353 67,138 49,788
-------------------- ----------- ------------ -------------
Net asset value per ordinary 193.2p 243.1p 180.3p
share ----------- ------------ -------------
--------------------
Finsbury Technology Trust PLC
Cash Flow Statement
For the half year ended 31 May 2003
(unaudited) (unaudited) (audited)
Half year ended Half year ended Year ended
31 May 2003 31 May 2002 30 November
2002
£000 £000 £000
--------------------- ------------ ----------- -------------
Net cash (outflow)/inflow from (421) 1,884 1,494
operating activities
Servicing of finance
Bank overdraft and loan interest (13) (3) (12)
paid
Taxation
Taxation recovered - 1 -
Financial investment
Purchase of investments (11,381) (21,381) (25,998)
Sales of investments 11,321 19,790 25,046
Net cash outflow from investment
financing
(60) (1,591) (952)
Financing
Drawdown/(repayment) of loans - - -
--------------------- ------------ ----------- -------------
(Decrease)/increase in cash
during the period
(494) 291 530
--------------------- ------------ ----------- -------------
Finsbury Technology Trust PLC
Notes to the interim accounts
1. Revenue Account
The revenue column of the Statement of Total Return represents the revenue
account of the Company.
2 Income
(unaudited) (unaudited) (audited)
Half year ended Half year ended Year ended
31 May 2003 31 May 2002
30 November
2002
£'000 £'000 £'000
Income from investments 76 150 317
Interest receivable and 4 8 10
other income ----------- ----------- -----------
---------------
Total 80 158 327
--------------- ----------- ----------- -----------
3 Loss per ordinary share
The revenue loss per ordinary share is calculated by dividing the loss of
£377,000 (half year ended 31 May 2002: £482,000; year ended 30 November
2002: £789,000) by 27,615,312 (half year ended 31 May 2002: 27,615,312;
year ended 30 November 2002: 27,615,312) being the weighted average number
of ordinary shares in issue for the period. The capital return per ordinary
share is calculated by dividing the net capital return of £3,942,000 (half
year ended 31 May 2002: loss £21,225,000; year ended 30 November 2002: loss
£38,268,000) by the weighted average number of ordinary shares as above.
4 Investment Management Fees
(unaudited) (unaudited) (audited)
Half year ended Half year ended Year ended
31 May 31 May 30 November
2003 2002 2002
£'000 £'000 £'000
Periodic fee 241 363 607
Irrecoverable VAT thereon 8 42 59
----------------- ----------- ----------- ------------
Total 249 405 666
----------------- ----------- ----------- ------------
Finsbury Technology Trust PLC
Notes to the interim accounts (continued)
5. Comparative information
The figures and financial information for the year ended 30 November 2002
are an extract from the latest published financial statements and do not
constitute statutory financial statements for that year. Those financial
statements were 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) and 237(3) of the Companies Act
1985.
The interim financial statements have neither been audited nor reviewed.
They have been prepared using the using the same accounting policies as
those adopted in the financial statement for the year ended 30 November
2002.
Close Finsbury Asset Management Ltd - Secretary
15 July 2003
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 46 minutes ago XP Factory
- 53 minutes ago Halma
- 54 minutes ago NCC Group
- 1 hour ago Eagle Eye Solutions Group
- 1 hour ago National Grid