Final Results - Year Ended 31 December 1999
Foreign&Colonial Enterprise Tst PLC
7 March 2000
FOREIGN & COLONIAL ENTERPRISE TRUST PLC
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR
TO 31 DECEMBER 1999
HIGHLIGHTS OF THE YEAR
- Shareholders' funds increased by 18.5%
- The share price rose by 23.0%
- The investment portfolio rose in value by 26.4%
- The Board has proposed a dividend of 4.3p
PERFORMANCE SUMMARY
1999 1998 % Change
Share price and comparable index
Share price 323.0p 262.5p +23.0%
FTSE All-Share Index 3,242.06 2,673.92 +21.2%
Attributable to ordinary shareholders
Shareholders' funds £299.2m £252.6m +18.5%
Net assets per share 318.1p 268.5p +18.5%
Dividend per share 4.3p 4.3p -
Commenting on the results, John Sclater, Chairman, said:
'Foreign & Colonial Enterprise Trust ('FACET') continued to make good
progress in 1999. Net assets attributable to shareholders rose by 18.5% to
£299.2 million (318.1p per share) and the share price rose by 23.0% to 323p.
By comparison the FTSE All-Share Index, FACET's long term benchmark, rose by
21.2%.
Balance Sheet
At the year-end, the investment portfolio was valued at £211.1 million and
accounted for 70.6% of net assets attributable to shareholders, a slight rise
compared with 65.7% a year earlier. The distribution of this portfolio
remained broadly unchanged with quoted investments, valued at £142.8 million,
accounting for 47.7% of net assets attributable to shareholders and unquoted
investments, valued at £68.3 million, accounting for 22.9%.
Liquid assets in the form of Treasury Bills, zero coupon preference shares and
cash net of debtors, creditors and minority interest accounted for the
remaining 29.4% of net assets attributable to shareholders.
Statement of Total Return and Dividend
The revenue return after taxation fell marginally owing to a fall in interest
income from liquid assets. This fall was sufficiently small that we are able
to propose that the dividend should remain unchanged at 4.3p per share and to
make a transfer to reserves of £0.8 million. After this year's transfer to
reserves, retained profits will still cover the dividend by more than 1.2
times.
Investment Policy
In response to FACET's increased size, high levels of liquidity and the
changed shareholder base, we have concluded that we should adopt a wider
investment policy. In future, in addition to making direct investments in
unquoted companies, we will also invest in funds focusing on the unquoted
sector and will make investments in smaller quoted companies. If appropriate
opportunities arise we will also consider acquiring existing portfolios of
unquoted investments or secondary interests in unquoted portfolios.
Directors
Christopher Weston retired from the board at the end of 1999 and Peter Burton
will retire at the AGM in April. We intend to appoint at least one new
director by the end of the year.
Outlook
FACET has begun the current year with approximately 30% of its net assets
attributable to shareholders in liquid holdings and it is therefore well
placed to take advantage of opportunities for new investments. Following the
adoption of our broader investment policy the range of opportunities will be
wider. In the meantime we have decided that we may index part of any surplus
liquidity to the UK stockmarket in some form.
The performance of the UK economy in 1999 exceeded most forecasts and the
general outlook is positive. The strength of sterling continues adversely to
affect the manufacturing sector and inflationary concerns are putting upward
pressure on interest rates, but there remains a consensus that the economy
will perform well in 2000. This optimism is reflected in many quoted company
valuations and these indirectly drive valuations in the unquoted sector.
Substantial funding is available in this sector which tends to increase
competitive pressure and to hold up prices, particularly for larger companies.
We do, however, expect our focus on medium-sized companies to shield us from
much of this pressure and we shall continue to apply strict return criteria to
new investments.'
For further information, please contact:
Rod Richards/William Eccles
F&C Ventures Tel: 0207 825 5300
FOREIGN & COLONIAL ENTERPRISE TRUST PLC
Preliminary Statement (unaudited) for the year ended 31 December 1999
CONSOLIDATED ASSETS
At 31 December
1999 1998
£'000s £'000s
Investments listed in Great Britain 143,894 114,714
Investments listed outside Great Britain 4,574 4,916
Unlisted investments at directors' valuation 74,654 58,091
Net current assets 80,934 76,039
Total assets less current liabilities 304,056 253,760
Minority interest (4,862) (1,205)
Net assets attributable to ordinary shareholders 299,194 252,555
CONSOLIDATED STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
For the year ended 31 December
1999 1998
Revenue Capital Total Revenue Capital Total
£'000s £'000s £'000s £'000s £'000s £'000s
Gains on investments - 51,912 51,912 - 64,105 64,105
Income 8,525 - 8,525 8,955 - 8,955
Investment management fee (1,200) (3,600)(4,800) (1,105) (3,313)(4,418)
Other expenses (1,002) 209 (793) (873) (195)(1,068)
Net return before finance
costs and taxation 6,323 48,521 54,844 6,977 60,597 67,574
Interest payable and
similar charges (54) - (54) (67) - (67)
Return on ordinary
activities before tax 6,269 48,521 54,790 6,910 60,597 67,507
Tax on ordinary activities(1,409) 1,089 (320) (2,011) 1,029 (982)
Return on ordinary
activities after tax 4,860 49,610 54,470 4,899 61,626 66,525
Minority interest - (3,787)(3,787) - (1,545)(1,545)
Return attributable to
equity shareholders 4,860 45,823 50,683 4,899 60,081 64,980
Dividends in respect of
ordinary shares (equity) (4,044) - (4,044) (4,044) - (4,044)
Transfer to reserves 816 45,823 46,639 855 60,081 60,936
Return per ordinary share 5.17p 48.73p 53.89p 5.21p 63.88p 69.09p
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 1999 1998
Net cash inflow from operating activities 2,547 3,340
Net cash outflow from servicing of finance (58) (65)
Net cash outflow from taxation (240) (293)
Net cash inflow from investing activities 6,698 15,619
Equity dividends paid (4,044) (3,668)
Net cash inflow/(outflow) from movement in liquid
resources 27,378 (12,148)
Net cash outflow from financing (147) (344)
Increase in cash 32,134 2,441
The Directors propose a dividend of 4.3p (1998 - 4.3p) per share payable on 26
April 2000 to shareholders registered on 17 March 2000.
The Annual General Meeting will be held at 2.30pm on 25 April 2000 at the
registered office of the Company, 8th Floor, Exchange House, Primrose Street,
London, EC2A 2NY.
Copies of the Report and Accounts will be posted to shareholders on or about
23 March 2000 and copies may be obtained during normal business hours from the
Company's registered office thereafter.
By order of the Board
Foreign & Colonial Management Limited
Secretary