Interim Results

Baring Emerging Europe PLC
5 May 2005



                           BARING EMERGING EUROPE PLC
                            Unaudited Interim Report
                  for the six months ended 31st March, 2005 

STATEMENT OF TOTAL RETURN

 
                                        Six months ended 31st March, 2005                  
                                      Revenue      Capital           Total      
                                         £000         £000            £000      
                                                                                   
Gains on investments                        -       30,613          30,613      
Gains on foreign exchange                   -           23              23      
Income                                    229            -             229      
Investment management fee                (718)        (455)         (1,173)  
Other expenses                           (394)           -            (394)  
Net return before interest               (883)      30,181          29,298      
payable and taxation                                                               
                                                                                   
Interest payable                          (15)           -             (15)  
Net return before taxation               (898)      30,181         (29,283)  
                                                                                   
Taxation                                  (18)           -             (18)  
Return attributable to ordinary          (916)      30,181          29,265      
shareholders                                                                       
                                                                                   
Dividend*                                  22            -              22      
Transfers (from)/to reserves             (894)      30,181          29,287      
                                                                                   
                                                                                   
                                       Revenue      Capital           Total      
                                                                                   
Return per ordinary share               (2.10)p      69.33p         67.23p  
                                                                                   
Dividend per ordinary share*               -  p          -p             -p  
                                                                                   
                                                                                  
* See note 1.                                                                      

 


 

STATEMENT OF TOTAL RETURN

 
                                         Six months ended 31st March, 2004                 
                                      Revenue         Capital          Total      
                                         £000            £000           £000      
                                                                                  
Gains on investments                        -          32,107         32,107      
Losses on foreign exchange                  -            (362)          (362)  
Income                                    714              -             714      
Investment management fee                (554)           (623)        (1,177)  
Other expenses                           (339)              -           (339)  
Net return before interest               (179)         31,122         30,943      
payable and taxation                                                              
                                                                                  
Interest payable                          (14)              -            (14)  
Net return before taxation               (193)         31,122         30,929      
                                                                                  
Taxation                                  (68)              -            (68)  
Return attributable to ordinary          (261)         31,122         30,861      
shareholders                                                                      
                                                                                  
Dividend*                                   -               -              -           
Transfers (from)/to reserves             (261)         31,122         30,861      
                                                                                  
                                                                                  
                                      Revenue         Capital          Total      
                                                                                  
Return per ordinary share               (0.59)p        70.16p          69.57p  
                                                                                  
Dividend per ordinary share*                - p            -p             - p  
                                                                                  
                                                                                  
* See note 1.                                                                     



 

STATEMENT OF TOTAL RETURN

 
                                           Year ended 30th September, 2004                   
                                      Revenue         Capital          Total      
                                         £000            £000           £000      
                                                                                   
Gains on investments                        -          30,116         30,116      
Losses on foreign exchange                  -            (333)          (333)  
Income                                  3,434               -          3,434      
Investment management fee              (1,171)           (116)        (1,287)  
Other expenses                           (693)              -           (693)  
Net return before interest              1,570          29,667         31,237      
payable and taxation                                                              
                                                                                  
Interest payable                          (18)              -            (18)  
Net return before taxation              1,552          29,667         31,219      
                                                                                  
Taxation                                 (467)              -           (467)  
Return attributable to ordinary         1,085          29,667         30,752      
shareholders                                                                      
                                                                                  
Dividend                                 (887)              -           (887)  
Transfers to reserves                     198          29,667         29,865      
                                                                                  
                                                                                  
                                      Revenue         Capital          Total      
                                                                                  
Return per ordinary share                2.45p         66.88p         69.33p  
                                                                                  
Dividend per ordinary share              2.00p             -p          2.00p  
                                                                                  
                                                                                  

 

BALANCE SHEET

 
                                                                       30th                  
                               31st March,      31st March,      September,            
                                     2005             2004             2004        
                                     £000             £000             £000        
                                                                                   
Fixed assets                                                                       
Investments                       171,179          142,605          146,674        
                                                                                   
Current assets                                                                     
Debtors                             1,824            4,293            1,745        
Cash at bank and in hand                -            6,847              285        
                                    1,824           11,140            2,030        
Creditors: Amounts falling           (945)          (6,440)          (2,395)    
due within one year                                                                
Net current assets/                   879            4,700             (365)    
(liabilities)                                                                      
Net assets                        172,058          147,305          146,309        
                                                                                   
Capital and reserves                                                               
Called-up share capital             4,326            4,436            4,436        
Share premium account               1,411            1,411            1,411        
Special Reserve                    76,379           79,917           79,917        
Redemption reserve                    462              352              352        
Capital reserve-realised           31,421           22,746           29,904        
Capital reserve-unrealised         58,489           38,438           29,825        
Revenue reserve                      (430)               5              464        
Total equity shareholders'        172,058          147,305          146,309        
funds                                                                              
                                                                                   
Net asset value per share          397.73p         332.07p          329.82p    
                                                                                   


CASHFLOW STATEMENT

 
                               Six months        Six months              Year                  
                                       to                to             ended                 
                               31st March,       31st March,        September,            
                                     2005              2004              2004       
                                     £000              £000              £000       
                                                                                    
Operating activities                                                                
Investment income received            703             1,546             3,917       
Deposit interest received               -                10                22       
Investment management fees           (700)             (432)           (1,050)   
paid                                                                                
Other cash payments                  (378)             (831)           (1,195)   
Net cash inflow from                 (375)              293             1,694       
operating activities                                                                  
                                                                                    
Servicing of finance                                                                
Interest paid                         (15)              (14)              (18)   
                                                                                    
Taxation                                                                            
Overseas tax paid                     (18)              (68)             (467)   
                                                                                    
Financial investment                                                                
Purchases of investments          (36,331)          (81,734)         (133,816)   
                                                                                    
Sales of investments               40,732            90,934           135,427       
Net cash inflow from                4,401             9,200             1,611       
financial investments                                                               
                                                                                       
Equity dividends paid                (865)             (488)             (488)   
Net cash inflow before              3,128             8,923             2,332       
financing                                                                           
                                                                                    
Financing                                                                           
Buyback of ordinary shares         (3,538)                -                -              
                                                                                    
Net cash outflow from              (3,538)                -                -              
financing                                                                           
                                                                                    
Increase/(decrease) in cash          (410)            8,923             2,332       



 

NOTES

 

1. Dividend

No dividend is payable in respect of the six months ended 31st March, 2005. The
credit of £22,000 for the six months to 31st March, 2005 represents the prior
year dividend due to the repurchase of shares.

 

Consideration will be given to an annual dividend in respect of the year ended
30th September, 2005 at a Board meeting to be held in November 2005. An
announcement will be made shortly after that meeting.

 

2. Comparative information

The figures and financial information for the period ended 30th September, 2004
are an extract from the latest published accounts and do not constitute
statutory accounts. Full accounts for that year 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 section 237 of the Companies
Act 1985.

 

The accounts for the six months ended 31st March, 2005, and for the period ended
31st March, 2004 have been neither audited nor reviewed by the auditors.

 

3. Posting of Interim Report

The Interim Report will be posted to shareholders on 19th May, 2005. It will not
be advertised in newspapers, but copies will be available from that date at the
Company's Registered Office at 155 Bishopsgate, London EC2M 3XY.

 

 



 

CHAIRMAN'S STATEMENT

 

The Company's net asset value increased by 20.6% during the six months ended
31st March, 2005, compared with a rise in it's benchmark of 18.0% and the share
price by 19.5%. Since the Company's launch on 17 December 2002 the net asset
value increased by 105.2% compared with an increase in the benchmark during the
same period of 96.1%. This is an encouraging performance.

 

The Board continues to monitor closely the market rating of the Company's
shares. At 31st March, 2005 the discount to net asset value was 9.98% and
averaged 9.75% over the six months. During the period the Board repurchased
1,100,000 (2.48%) of the Company's shares and will continue to be active when
necessary.

 

The Board shares the Investment Manager's view that investment opportunities in
the region remain attractive.

 

 

Iain Saunders
Chairman
4th May, 2005

 
 

155 Bishopsgate, London, EC2M 3XY
020 7628 6000




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