Interim Results - Amendment
Finsbury Growth & Income Trust PLC
04 May 2006
This announcement replaces RNS 3597c released at 13.01pm on 3 May 2006. The
primary amendment to the previous announcement is the replacement of the 31
March 2005 comparative figures within the Cash Flow Statement.
For immediate release
4 May 2006
Finsbury Growth & Income Trust PLC
Announces Interim Results for the six months to 31 March 2006
Financial Highlights: (Unaudited) *Restated % change
31 March 2006 (Audited)
30 September
2005
Share price 301.5p 260.3p 15.8
Net Asset Value per
share 296.9p 257.8p 15.2
Premium/(discount) 1.5% 1.0% -
Shareholders' Funds £143.4m £115.9m 23.7
Market
capitalisation £145.6m £117.0m 24.4
Six months to Six months to
31 March 2006 31 March
2005
Dividend 4.2p 4.0p 5.0
Six months to One year to
31 March 2006
30 September
2005
Share price (total
return #) +17.5% +37.2% -
Net Asset Value per
share (total return #) +16.6% +31.5% -
FTSE All-Share Index
(total return) +12.7% +24.9% -
* Restated - see note 1d
# Source - Fundamental Data for the AITC
For and on behalf of
Close Finsbury Asset Management Limited, Secretary
4 May 2006
- ENDS -
The following are attached:
* Chairman's Statement
* Income Statement
* Reconciliation of Movements in Shareholders' Funds
* Balance Sheet
* Cash Flow Statement
* Notes to the interim accounts
For further information please contact:
Alastair Smith/Tracey Lago, Close Finsbury Asset Management Limited
020 7426 6240/6219
Jo Stonier/Eleanor Clarke, Quill Communications 020 7758 2230
Nick Train, Lindsell Train Limited 020 7225 6400
Chairman's Statement
In the six months to 31 March 2006 your Company continued to grow in size and
value. 3,337,930 new Ordinary shares were issued (increasing the issued share
capital by 7.4%) at an average price of £2.73 per share, all of which were
issued at a premium to net asset value per share of at least 1.5%. The market
value of your shares increased from 260.3p on 30 September 2005 to 301.5p on 31
March 2006, an increase of 15.8% and the market capitalisation of your Company
increased by 24.4% to £145.6m.
At an Extraordinary General Meeting on 12 April 2006 shareholders approved a
resolution to increase the authorised share capital to £25m, renewed the
authority to allot new Ordinary shares and to disapply pre-emption rights in
respect of the allotment of up to a further 10.0% of the issued share capital of
the Company. In order to maintain compliance with the Prospectus Rules, a
Prospectus was published to enable new shares to be issued.
Return and Dividends
The Income Statement shows a total return per share of 43.35p made up of a
revenue return of 5.14p and a capital return of 38.21p.
An interim dividend of 4.2p per share (2005: 4.0p) was declared on 9 March 2006
and paid on 18 April 2006 to shareholders on the register at the close of
business on 17 March 2006.
Investments
In the six months ended 31 March 2006 the net asset value (total return)
increased by 16.6% compared with that of the FTSE All-Share Index (total
return), the Company's benchmark, of 12.7%. The Board is delighted with this
outperformance of 3.9%.
Major contributors to this outperformance were your Company's investments in the
London Stock Exchange, Bradford & Bingley, Rathbone Brothers and Royalblue which
showed increases in total return in the period of 87.0%, 49.9%, 42.3% and 45.1%
respectively. In fact only one investment showed a loss during the period,
namely Shell with a total return of minus 2.8%.
Borrowings
Your Company has a committed revolving credit facility of £20 million for a
fixed term expiring in December 2008 which is subject to a variable rate of
interest but which is capable of being fixed at any time. Your Company also has
a further uncommitted facility of £5 million.
At 31 March 2006, all the committed facility was drawn down.
Outlook
In my statement accompanying last year's Annual Report and Accounts I said that
it would not be easy for your Company to repeat the substantial progress that it
made in that year. In the six months under review, although the rate of progress
has slowed, substantial progress has been made. Your Board intend to continue to
issue new shares at a premium to net asset value per share as demand for your
Company's shares requires. Such demand will be a reflection of a continuing good
investment performance.
Michael Reeve
Chairman
3 May 2006
Income Statement
For the six months ended 31 March 2006
(Unaudited) Restated* Restated*
Six months (Unaudited) (Audited)
ended
31 March 2006 Six months Year ended
ended
31 March 2005 30 September
2005
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Gains on
investments
held at fair
value through
profit or loss - 18,699 18,699 - 13,019 13,019 - 21,224 21,224
Income from
investments
held at fair
value through
profit or loss
(note 2) 3,002 - 3,002 1,821 - 1,821 4,369 - 4,369
Management fee (164) (331) (495) (107) (218) (325) (246) (499) (745)
(note 3)
Other
administration
expenses (237) (80) (317) (215) - (215) (458) - (458)
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Net return on
ordinary
activities
before finance
charges and
taxation 2,601 18,288 20,889 1,499 12,801 14,300 3,665 20,725 24,390
Finance (197) (400) (597) (161) (326) (487) (334) (677) (1,011)
charges
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Net return on
ordinary
activities
before
taxation 2,404 17,888 20,292 1,338 12,475 13,813 3,331 20,048 23,379
Taxation on - - - - - - - - -
ordinary
activities
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Net return on
ordinary
activities
after taxation 2,404 17,888 20,292 1,338 12,475 13,813 3,331 20,048 23,379
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Return per
Ordinary share
(note 4) 5.14p 38.21p 43.35p 3.56p 33.16p 36.72p 8.21p 49.41p 57.62p
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
*Restated - see note 1
The total column of this statement represents the Company's Income Statement.
The revenue return and capital return columns are supplementary to this and are
prepared under guidance published by the Association of Investment Trust
Companies.
Reconciliation of Movements in Shareholders' Funds
Six months ended 31 March 2005
----------------- ------- ------- ------ -------- ------- ------- -------
Called up Share Premium Special Reserve Capital Other Capital Revenue Reserve Total
£'000 Redemption Reserve £'000
Share Capital £'000 Reserve £'000 £'000
£'000 £'000
----------------- ------- ------- ------ -------- ------- ------- -------
At 30
September 2004
(as previously
stated) 9,614 121 12,424 3,453 47,451 1,167 74,230
Add final
dividend of
4.1p per share
accrued but
not paid in
respect of the
year ended 30
September 2004 - - - - - 1,496 1,496
----------------- ------- ------- ------ -------- ------- ------- -------
At 30
September 2004
(restated) 9,614 121 12,424 3,453 47,451 2,663 75,726
Net return
from ordinary
activities - - - - 12,475 1,338 13,813
Dividend of
4.1p per share
paid in
respect of
year ended 30
September 2004 - - - - - (1,496) (1,496)
Treasury
shares sold - 721 3,514 - - - 4,235
----------------- ------- ------- ------ -------- ------- ------- -------
At 31 March
2005 9,614 842 15,938 3,453 59,926 2,505 92,278
----------------- ------- ------- ------ -------- ------- ------- -------
Year ended 30 September 2005
----------------- ------- ------- ------ -------- ------- ------- -------
Called up Share Premium Special Reserve Capital Other Capital Revenue Reserve Total
£'000 Redemption Reserve £'000
Share Capital £'000 Reserve £'000 £'000
£'000 £'000
----------------- ------- ------- ------ -------- ------- ------- -------
At 30
September 2004
(as previously
stated) 9,614 121 12,424 3,453 47,451 1,167 74,230
Add final
dividend of
4.1p per share
accrued but
not paid in
respect of the
year ended 30
September 2004 - - - - - 1,496 1,496
----------------- ------- ------- ------ -------- ------- ------- -------
At 30
September 2004
(restated) 9,614 121 12,424 3,453 47,451 2,663 75,726
Net return
from ordinary
activities 20,048 3,331 23,379
Dividend paid
in respect of
the year ended
30 September
2004 - - - - - (1,496) (1,496)
Less first
interim
dividend (4.0p
per share) for
the year ended
30 September
2005 - - - - - (1,565) (1,565)
Ordinary
shares issued 1,623 14,000 - - - - 15,623
Treasury
shares sold - 722 - - 3,479 - 4,201
----------------- ------- ------- ------ -------- ------- ------- -------
At 30
September 2005 11,237 14,843 12,424 3,453 70,978 2,933 115,868
----------------- ------- ------- ------ -------- ------- ------- -------
Six months ended 31 March 2006
----------------- ------- ------- ------- -------- ------- ------- -------
Called up Share Premium Special Reserve Capital Other Capital Revenue Reserve Total
£'000 Redemption Reserve £'000
Share Capital £'000 Reserve £'000 £'000
£'000 £'000
----------------- ------- ------- ------- -------- ------- ------- -------
At 30
September 2005
(as restated) 11,237 14,843 12,424 3,453 70,978 2,933 115,868
Net return
from ordinary
activities - - - - 17,888 2,404 20,292
Second interim
dividend of
4.0p paid in
respect of
year ended 30
September 2005 - - - - - (1,796) (1,796)
Issue of
ordinary
shares 835 8,190 - - - - 9,025
----------------- ------- ------- ------- -------- ------- ------- -------
At 31 March
2006 12,072 23,033 12,424 3,453 88,866 3,541 143,389
----------------- ------- ------- ------- -------- ------- ------- -------
Balance Sheet
As at 31 March 2006
-------------
(Unaudited) Restated* Restated*
31 March 2006 (Unaudited) (Audited)
£'000 31 March 2005 30 September
2005
£'000 £'000
---------------- ------------ ----------- -------------
Fixed assets 161,848 107,810 132,911
Investments held at fair value
through profit or loss
---------------- ------------ ----------- -------------
Current assets
Investments held for trading - 645 645
Debtors 1,919 1,194 1,313
Bank balances and short term
deposits 226 287 218
---------------- ------------ ----------- -------------
2,145 2,126 2,176
Creditors
Amounts falling due within one
year (20,604) (17,658) (19,219)
---------------- ------------ ----------- -------------
Total assets less current
liabilities (18,459) (15,532) (17,043)
---------------- ------------ ----------- -------------
Total net assets 143,389 92,278 115,868
---------------- ------------ ----------- -------------
Capital and reserves
Called up share capital 12,072 9,614 11,237
Share premium 23,033 842 14,843
Special reserve 12,424 15,938 12,424
Capital redemption reserve 3,453 3,453 3,453
Capital reserve - realised 45,119 40,918 45,931
Capital reserve - unrealised 43,747 19,008 25,047
Revenue reserve 3,541 2,505 2,933
---------------- ------------ ----------- -------------
Equity shareholders' funds 143,389 92,278 115,868
---------------- ------------ ----------- -------------
Net asset value per Ordinary share
(note 5) 296.9p 240.0p 257.8p
---------------- ------------ ----------- -------------
*Restated - see note 1
Cash Flow Statement
For the six months ended 31 March 2006
(Unaudited) (Unaudited) (Audited)
31 March 2006 31 March 2005 30 September
2005
£'000 £'000 £'000
------------------ ----------- ------------ -------------
Net cash inflow from
operating activities 1,142 593 2,573
Servicing of finance
Loan and bank overdraft
interest paid (571) (472) (1,020)
Financial investment
Purchase of investments (9,486) (17,526) (40,111)
Sale of investments - 12,478 19,006
------------------ ----------- ------------ -------------
Net cash outflow from
financial investment (9,486) (5,048) (21,105)
Equity dividends paid (1,796) (1,523) (3,061)
------------------ ----------- ------------ -------------
Net cash outflow before
financing (10,711) (6,450) (22,613)
Financing
Issue of new shares 8,819 - 15,494
Treasury shares sold - 4,236 4,236
Drawdown of loans 1,900 2,250 2,850
------------------ ----------- ------------ -------------
Net cash inflow from
financing 10,719 6,486 22,580
------------------ ----------- ------------ -------------
Increase/(decrease) in
cash 8 36 (33)
------------------ ----------- ------------ -------------
Reconciliation of net cash flow to
movement in net debt
Increase/(decrease) in
cash resulting from
cashflows 8 36 (33)
Increase in debt (1,900) (2,250) (2,850)
------------------ ----------- ------------ -------------
Movement in debt (1,892) (2,214) (2,883)
Net debt at start of
period/year (17,882) (14,999) (14,999)
------------------ ----------- ------------ -------------
Net debt at end of
period/year (19,774) (17,213) (17,882)
------------------ ----------- ------------ -------------
Notes to the interim accounts
1. Accounting Policies
a) Changes in presentation
The Company has adopted the provisions of the revised SORP (statement of
recommended practice, dated December 2005) and revised UK Accounting Standards
which has resulted in some changes to the presentation of the Company's
accounts.
The Statement of Total Return is now called the Income Statement. Dividends
payable to equity shareholders are no longer reflected in the Income Statement,
although they continue to be shown in the Reconciliation of Movements in
Shareholders' Funds which is now presented as a primary statement.
b) Changes in accounting policies
The Company has changed its accounting policy for the valuation of listed
investments and the recognition of dividends payable to equity shareholders in
accordance with the provisions of FRS 26 - Financial instruments: Recognition
and Measurement ('FRS 26') and FRS 21 - Events after the balance sheet date
('FRS 21') respectively. These changes in policy and the associated impact on
the results of the Company are referred to below. As permitted by FRS 26,
comparatives have not been restated for the change in basis of valuation from
mid to bid.
c) Valuation of fixed asset investments
Following the introduction of FRS 26, listed investments have been designated by
the Board as held at fair value through profit or loss and accordingly are
valued at fair value, deemed to be bid market prices. The market value of listed
investments for previous periods have not been restated.
Changes in the fair value of investments held at fair value through profit or
loss and gains and losses on disposal are recognised in the Income Statement as
'Gains or losses on investments held at fair value through profit or loss'. Also
included within this caption are transaction costs in relation to the purchase
or sale of investments, including the difference between the purchase price of
an investment and its bid price at the date of purchase. Purchase transaction
costs for the period to 31 March 2006 were £65,965 (30 September 2005: £233,456
and 31 March 2005: £90,301), which comprise stamp duty and commission. Sale
transaction costs for the period to 31 March 2006 were nil, (30 September 2005:
£674 and 31 March 2005: nil). All purchases and sales are accounted for on a
trade date basis.
d) Dividends payable to equity shareholders
Under FRS 21 dividends should not be accrued in the accounts unless they have
been approved by shareholders before the Balance Sheet date. The final dividend
payable to equity shareholders is recognised in the Reconciliation of Movements
in Shareholders' Funds when it has been approved by shareholders and becomes a
liability to the Company; whereas an interim dividend will be recognised when it
is paid.
The effect of this change is to increase net assets at 30 September 2005 by
£1,796,000 (or 4.0p per share) (31 March 2005: £1,565,000 or 4.0p per share).
2. Income
Six months Six months Year ended
ended ended
31 March 2006 31 March 2005 30 September
2005
£'000 £'000 £'000
Investment income 2,320 1,788 4,296
Dividend paid from subsidiary 645 - -
Bank interest 37 33 73
------------ ---------- -----------
Total 3,002 1,821 4,369
------------ ---------- -----------
3. Management fees
Six months Six months Year ended
ended ended
31 March 2006 31 March 2005 30 September
2005
£'000 £'000 £'000
Management fee 421 277 634
Irrecoverable VAT thereon 74 48 111
----------- ---------- -----------
Total 495 325 745
----------- ---------- -----------
4. Return per Ordinary share
The revenue return per Ordinary share is calculated by dividing the net revenue
return of £2,404,000 (six months ended 31 March 2005: return of £1,338,000; year
ended 30 September 2005: return of £3,331,000) by 46,805,418 (six months ended
31 March 2005: 37,616,627; year ended 30 September 2005: 40,573,992), being the
weighted average number of Ordinary shares in issue. The capital return per
Ordinary share is calculated by dividing the net capital gains attributable to
Ordinary shareholders of £17,888,000 (six months ended 31 March 2005:
£12,475,000; year ended 30 September 2005: gain of £20,048,000) by the weighted
average number of Ordinary shares in issue as above.
For the six months ended 31 March 2006, using the actual number of shares in
issue of 48,286,573 the total return per Ordinary share is 42.02p, split between
revenue 4.98p and capital 37.04p.
5. Net asset value per share
The net asset value per Ordinary share is based on net assets attributable to
Ordinary shares of £143,389,000 (31 March 2005: £92,278,000 and 30 September
2005: £115,868,000) and on 48,286,573 Ordinary shares in issue (31 March 2005:
38,456,430 and 30 September 2005: 44,948,643).
6. 2005 Accounts
The figures and financial information for the year ended 30 September 2005 as
restated are extracted from the latest published accounts of the Company and do
not constitute statutory accounts for the year.
Those accounts have been delivered to the Registrar of Companies and received an
audit report which was unqualified, did not include a reference to any matters
to which the auditors drew attention by way of emphasis without qualifying the
report, and did not contain a statement under either Section 237(2) and 237(3)
of the Companies Act 1985.
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