Interim Results
Henderson Eurotrust PLC
28 February 2001
28 February 2001
HENDERSON EUROTRUST PLC
Unaudited Interim Results for half year ended 31 January 2001
Henderson EuroTrust plc today announces unaudited interim results for the half
year ended 31 January 2001.
Financial Highlights
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
31 January 2001 31 January 2000 31 July 2000
in pence in pence in pence
Net asset value per
Ordinary share 388.68 376.99 434.19
Zero dividend preference 56.60 50.14 53.27
share
Unit 445.28 427.13 487.46
Dividends per ordinary 1.00 1.00 2.50
share/unit
(Loss)/earnings per (0.41) (0.45) 1.76
ordinary share/unit
Dividend
An interim dividend of 1.00p (2000:1.00p) per ordinary share/unit has been
declared payable on 12 April 2001 to shareholders on the register of the
Company on 9 March 2001. The Company's shares will be quoted ex dividend on 7
March 2001.
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2001
Chairman's Statement:
The six months since our year end of 31 July, 2000, have seen a dramatic shift
in sentiment on world markets. Although the climate for technology stocks had
already begun to worsen well before that stage, the extent to which euphoria
would swing to despair surprised us. However, we have always selected a
variety of growth companies, which enabled us to weather the turbulence of the
last six months with limited damage and to be positioned now for what may
continue to be difficult markets.
During the six months to 31 January, 2001, the net asset value of Henderson
EuroTrust plc fell by 8.7% to £78.3m. This represents an under-performance of
7.1% against the benchmark FTSE Europe ex UK Index. Over the past twelve
months, the net asset value increased by 4.2%, an under-performance of 6.7%.
Nevertheless, over the three years to the end of January 2001 the trust has
significantly outperformed the index with a total return of 86.0% compared to
57.9% for the index.
Gross revenue for the six months amounted to £179,000. After administrative
expenses, interest payable and taxation, the net loss amounted to £72,000
equivalent to a loss per share of 0.41p. This compares with gross revenue of £
176,000 and a net loss of £79,000 for the corresponding period ended 31
January 2000.
The directors have declared an unchanged interim dividend of 1.0p per ordinary
share.
Portfolio Review
In this environment, the portfolio has seen an acceleration of the
repositioning which had been started in the first three months of 2000. In the
interim report a year ago, and again in the Annual Report for the full year
ended July 2000, I drew attention both to the heady valuations which investors
had come to accept for TMT companies, and to the action taken by the manager
to reduce the exposure to the risks inherent in that situation.
At the end of January, 2001, the total amount invested in the TMT sectors
amounted to less than 25% of the portfolio. This was a significant reduction
from the 54% a year ago, which had contributed to the out-performance of the
Company over the medium term.
Apart from pure technology companies, we continue to find quality investments
in good growth businesses at reasonable valuation levels. Our emphasis on
growth has served us as well over the longer as over the medium term and we
remain committed to this strategy.
One of the key criteria which we monitor is a high degree of visibility,
enabling us to estimate future profit growth well ahead, regardless of how
strong or weak world growth may be. Outsourcing and personal savings are two
of the areas in Continental Europe which meet this requirement in our view.
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Outlook
Markets remain unsettled by the outlook for the US economy which has clearly
begun to slow, and the Federal Reserve has already cut interest rates sharply.
European economies have not yet shown such signs of weakness, and the response
of the European Central Bank so far has been more muted. We foresee an
environment of slower but maintained growth in Europe, with lower interest
rates over the course of the year. This should be favourable for the equity
markets, but we remain concerned that some expectations for profits growth are
still too optimistic, leaving some valuation levels too high. Some parts of
the technology sector fall into this category, and here we shall be
particularly selective. We shall continue to focus on those businesses whose
reliable growth profile can be expected to be rewarded by the market again
over the next twelve months.
Board
I would like to take this opportunity to thank Mr Hugh Priestley, who resigned
from the Board with effect from 1 January 2001, for the contribution that he
has made to the Company since its inception in 1992. We welcome Mr Patrick
Stevenson to the Board with immediate effect. Patrick brings further European
expertise to the Company as it approaches the end of its original ten year
period and as we prepare for the continuation of the Company.
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2001
Statement of Total Return (incorporating the revenue account)
for the half year ended 31 January 2001
(Unaudited) (Unaudited)
Half Year ended Half Year ended
31 January 2001 31 January 2000
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Total - (6,938) (6,938) - 17,846 17,846
capital
(losses)/gains
from
investments
Income from 90 - 90 124 - 124
fixed asset
investments
Other 89 - 89 52 - 52
interest
receivable
and similar
income
Gross 179 (6,938) (6,759) 176 17,846 18,022
revenue and
capital
gains/
(losses)
Management (185) (185) (370) (173) (173) (346)
fee
Other (46) (46) (92) (47) (47) (94)
administrative
expenses
Net (52) (7,169) (7,221) (44) 17,626 17,582
(loss)/return
on ordinary
activities
before
interest
payable and
taxation
Interest - - - (1) - (1)
payable
Net (52) (7,169) (7,221) (45) 17,626 17,581
(loss)/return
on ordinary
activities
before
taxation
Taxation on (20) - (20) (34) - (34)
net return
on ordinary
activities
Net (72) (7,169) (7,241) (79) 17,626 17,547
(loss)/return
on ordinary
activities
after
taxation
Capital gain - (586) (586) - (521) (521)
attributable
to zero
dividend
preference
shares
Net (72) (7,755) (7,827) (79) 17,105 17,026
(loss)/return
attributable
to ordinary
shareholders
Dividends
declared:
Interim:
1.00p (2000: 1.00p) (176) - (176) (176) - (176)
Final: 1.50p - - - - - -
(176) - (176) (176) - (176)
Transfer (248) (7,755) (8,003) (255) 17,105 16,850
(from)/to
reserves
Return/(loss)
per:
Zero - 3.33p 3.33p - 2.96p 2.96p
dividend
preference
share
Ordinary (0.41)p (44.09)p (44.50)p (0.45)p 97.26p 96.81p
share
(Audited)
Year ended
31 July 2000
Revenue Capital Total
£'000 £'000 £'000
Total capital (losses)/gains from - 28,496 28,496
investments
Income from fixed asset investments 890 - 890
Other interest receivable and similar 157 - 157
income
Gross revenue and capital gains 1,047 28,496 29,543
/(losses)
Management fee (389) (389) (778)
Other administrative expenses (94) (94) (188)
Net (loss)/return on ordinary 564 28,013 28,577
activities before interest payable
and taxation
Interest payable (2) - (2)
Net (loss)/return on ordinary 562 28,013 28,575
activities before taxation
Taxation on net return on ordinary (253) 97 (156)
activities
Net (loss)/return on ordinary 309 28,110 28,419
activities after taxation
Capital gain attributable to zero - (1,070) (1,070)
dividend preference shares
Net (loss)/return attributable to 309 27,040 27,349
ordinary shareholders
Dividends declared:
Interim: 1.00p (2000: 1.00p) (176) - (176)
Final: 1.50p (264) - (264)
(440) - (440)
Transfer (from)/to reserves (131) 27,040 26,909
Return/(loss) per:
Zero dividend preference share - 6.08p 6.08p
Ordinary share 1.76p 153.75p 155.51p
The revenue columns of this statement represent the revenue accounts of the
Company.
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2001
Balance Sheets
At 31 January 2001
(Unaudited) (Unaudited) (Audited)
31 January 31 January 31 July
2001 2000 2000
£'000 £'000 £'000
Fixed asset investments 74,704 69,867 82,224
----------- ----------- -----------
Current assets
Debtors 1,352 2,169 1,567
Bank balances and short term deposits 4,163 4,168 3,736
----------- ----------- -----------
5,515 6,337 5,303
Creditors - amounts falling due
within one year (1,906) (1,082) (1,797)
----------- ----------- -----------
Net current assets 3,609 5,255 3,506
----------- ----------- -----------
Total net assets 78,313 75,122 85,730
======= ======= =======
Capital and reserves
Called-up share capital 4,396 4,396 4,396
Share premium account 12,491 12,491 12,491
Redemption reserve 6,437 5,301 5,851
Other capital reserves 54,795 52,614 62,550
Revenue reserve 194 320 442
----------- ----------- -----------
Total shareholders' funds 78,313 75,122 85,730
======= ======= =======
Attributable to:
Zero dividend preference shares 9,954 8,819 9,368
Ordinary shares 68,359 66,303 76,362
----------- ----------- -----------
78,313 75,122 85,730
======= ======= =======
Net asset value per:
Zero dividend preference share 56.60p 50.14p 53.27p
Ordinary share 388.68p 376.99p 434.19p
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2001
Cash Flow Statement
for the half year ended 31 January 2001
(Unaudited) (Unaudited) (Audited)
Half year Half year Year
ended ended ended
31 January 31 January 31 July
2001 2000 2000
£'000 £'000 £'000
Net cash outflow from operating activities (152) (449) (262)
Interest paid - (1) (8)
Total tax recovered 19 51 170
Net cash inflow from purchases and sales of 802 1,775 1,041
investments
Equity dividends paid (264) (264) (440)
----------- ----------- ----------
Increase in cash 405 1,112 501
======= ======= =======
Reconciliation of operating revenue to net cash
inflow from operating activities
Net return before interest payable and (52) (44) 564
taxation
Decrease/(increase) in prepayments and 7 (21) 16
accrued income
Increase/(decrease) in creditors and 155 (110) (115)
accruals
Expenses charged to capital (231) (219) (483)
Tax on unfranked investment income deducted (19) (38) (227)
at source
Scrip dividends included in investment (12) (17) (17)
income
----------- ----------- ----------
Net cash inflow from operating activities (152) (449) (262)
======= ======= =======
Reconciliation of net cash flow to movement in net funds
Increase in cash as above 405 1,112 501
Exchange movements 22 (264) (85)
----------- ----------- ----------
Change in net funds resulting from cash 427 848 416
flows
Net funds at beginning of the period 3,736 3,320 3,320
----------- ----------- ----------
Net funds at end of period 4,163 4,168 3,736
======= ======= =======
Represented by: ----------- ----------- ----------
Cash at bank and short term deposits 4,163 4,168 3,736
======= ======= =======
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HENDERSON EUROTRUST PLC
Unaudited Interim Results for the half year ended 31 January 2001
Notes
1. Year ended 31 July 2000
The figures and financial information for the year ended 31 July 2000
are extracted from the latest published accounts of the Company and do
not constitute the statutory accounts for that year. Those accounts
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 either section 237(2) or 237(3) of the Companies Act
1985.
2. Shares and Units
There are 17,587,348 of each class of share in issue. Units comprise
one ordinary share and one zero dividend preference share and are
listed on The London Stock Exchange.
3. Interim Dividend
An interim dividend of 1.00p per ordinary share/unit has been declared
payable on 12 April 2001 to shareholders on the register of the
Company on 9 March 2001. The Company's shares will be quoted
ex-dividend on 7 March 2001.
4. Interim Report
The interim report will be posted to shareholders in March 2000 and
will be available thereafter from the Secretary at the Registered
Office, 4 Broadgate, London, EC2M 2DA.
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For further information please contact :
Tim Stevenson
Henderson EuroTrust plc
020 7410 4100
Stephen Westwood
Director of Investment Trusts
Henderson Global Investors
020 7410 4100
Vicki Staveacre
Henderson Press Office
020 7410 4222
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