Final Results
Henderson High Income Trust PLC
05 March 2004
4 March 2004
HENDERSON HIGH INCOME TRUST PLC
Unaudited Preliminary Results for the year ended 31 December 2003
Highlights
• NAV Total Return per ordinary share increased by 25.5%*, compared to a
rise in the FTSE All-Share Index of 20.9%
• Annual dividend maintained at 9.90p; creating a yield on the ordinary
shares of 9.3% at a price of 106.0p
* Source: AITC Services Limited. This differs from the net asset value return
calculated from the financial statements of 26.3% as a result of timing and
methodology differences and includes net dividends reinvested.
Extracts from the Chairman's Statement:
Assets and Performance
I am happy to report that the recovery in equity markets during 2003 has fed
through to an increase in the Company's assets and share price. The rapid
conclusion to the Iraq war led to an improvement in investor sentiment,
providing a supportive backdrop to stock markets. Economic recovery was
stimulated by a low interest rate policy and corporate profitability has
steadily improved, although on a patchy basis.
Over the year the Company's ordinary shares registered a net asset total return
of 25.5%. This contrasts with a 20.9% increase in equities as measured by the
FTSE All-Share Index and a 2.1% return from fixed interest as measured by the
FTA Government All Stocks Index. The units produced a net asset total return
over the year of 18.5%.
The financial year under review saw the introduction of the new management fee
arrangement with Henderson Global Investors whereby there is a lower basic fee,
and introducing a capped performance-related element. Over the year the managers
have delivered a total return in excess of the performance benchmark and they
have accordingly earned the maximum fee payable under the new arrangement.
Dividends
Growth in dividends is slowly improving as corporate profitability increases.
Recent significant cuts in dividends from some of the largest UK companies mean
that increased distributions are sometimes starting from a lower base. Meanwhile
the fall in the US Dollar against Sterling has reduced the value of payouts from
those companies declaring income in US Dollars, such as BP, HSBC and Carnival
Cruises.
- MORE -
- 2 -
HENDERSON HIGH INCOME TRUST PLC
Unaudited Preliminary Results for the year ended 31 December 2003
Extracts from the Chairman's Statement (cont'd):
The Company's revenue has been generally stable in recent years. In order to
maintain a balance between income and capital return to shareholders, the Board
has declared an unchanged fourth interim dividend. In total, dividends declared
for the year amount to 9.90p, creating a yield on the ordinary shares of 9.3% at
a price of 106.0p.
The Board
Hugh Twiss was appointed to the Board as a director on 1 October 2003 and
consequently will be seeking election at the Annual General Meeting in April
2004. We are very pleased that Hugh accepted our invitation to join the Board as
he brings a wealth of experience in financial markets and particularly in
investment trusts. He has also accepted the Board's invitation to chair the
Nominations Committee. In addition, Patrick Dalby is standing for re-election.
We hope to make another appointment during the coming year, further
strengthening the Board.
Prospects
We are at that delicate stage of an economic recovery when a degree of caution
should be exercised by the authorities. Interest rates have been nudged higher
and may need to increase further to stop over exuberance and speculation
recreating a boom-bust culture. A slowing of both consumer spending and house
price inflation is needed to balance demand and keep inflation low. Share prices
can make further progress this year if, as we hope, the pick-up in economic
growth proves sustainable and the imbalances in the economy are addressed.
- MORE -
- 3 -
HENDERSON HIGH INCOME TRUST PLC
Unaudited Preliminary Results for the year ended 31 December 2003
Group Statement of Total Return (incorporating the revenue account)
for the year ended 31 December 2003
Year ended 31 December 2003 Year ended 31 December 2002
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Net capital gains/(losses) from investments - 12,107 12,107 - (14,960) (14,960)
Income from fixed asset investments 6,410 - 6,410 6,461 - 6,461
Other interest receivable and similar income 36 - 36 79 - 79
---------- ---------- ---------- ---------- ---------- ----------
Gross revenue and capital gains/(losses) 6,446 12,107 18,553 6,540 (14,960) (8,420)
Management and performance fees (258) (778) (1,036) (330) (495) (825)
Other administrative expenses (260) - (260) (222) - (222)
---------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on ordinary activities 5,928 11,329 17,257 5,988 (15,455) (9,467)
before interest payable and taxation
Interest payable (205) (614) (819) (228) (684) (912)
Movement in provision for redemption of the
zero dividend - (2,600) (2,600) - (2,403) (2,403)
preference shares in the Subsidiary
---------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on ordinary activities 5,723 8,115 13,838 5,760 (18,542) (12,782)
before taxation
Taxation on net return/(loss) on ordinary (279) 267 (12) (352) 342 (10)
activities
---------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on ordinary activities after 5,444 8,382 13,826 5,408 (18,200) (12,792)
taxation
---------- ---------- ---------- ---------- ---------- ----------
Dividends: ordinary shares
1st interim paid of 2.475p (2002: 2.475p) (1,372) - (1,372) (1,341) - (1,341)
2nd interim paid of 2.475p (2002: 2.475p) (1,372) - (1,372) (1,372) - (1,372)
3rd interim declared of 2.475p (2002: 2.475p) (1,387) - (1,387) (1,372) - (1,372)
4th interim proposed of 2.475p (2002: 2.475p) (1,387) - (1,387) (1,372) - (1,372)
---------- ---------- ---------- ---------- ---------- ----------
(5,518) - (5,518) (5,457) - (5,457)
---------- ---------- ---------- ---------- ---------- ----------
Transfer (from)/to reserves (74) 8,382 8,308 (49) (18,200) (18,249)
====== ====== ====== ====== ====== ======
Return/(loss) per ordinary share 9.79p 15.08p 24.87p 9.95p (33.49)p (23.54)p
====== ====== ====== ====== ====== ======
Return per zero dividend preference share
- 4.94p 4.94p - 4.57p 4.57p
in the Subsidiary
====== ====== ====== ====== ====== ======
Return/(loss) per unit 9.79p 20.02p 29.81p 9.95p (28.92)p (18.97)p
====== ====== ====== ====== ====== ======
The revenue columns of this statement represent the profit and loss accounts of
the Group.
-MORE-
- 4-
HENDERSON HIGH INCOME TRUST PLC
Unaudited Preliminary Results for the year ended 31 December 2003
Group and Company Balance Sheets
at 31 December 2003
Group Company Group Company
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Fixed asset investments
Listed in the United Kingdom 120,409 120,409 104,902 104,902
---------- ---------- ---------- ----------
120,409 120,409 104,902 104,902
---------- ---------- ---------- ----------
Current assets
Debtors 1,070 1,070 1,247 1,247
Bank balances and short term deposits 315 315 - -
---------- ---------- ---------- ----------
1,385 1,385 1,247 1,247
Creditors: amounts falling due within one year (21,030) (21,030) (21,959) (21,959)
---------- ---------- ---------- ----------
Net current liabilities (19,645) (19,645) (20,712) (20,712)
---------- ---------- ---------- ----------
Total assets less current liabilities 100,764 100,764 84,190 84,190
Creditors: amounts falling due after one year
Provision for amounts owed to group undertaking - (34,310) - (31,710)
Zero dividend preference shares in the Subsidiary (34,310) - (31,710) -
Bank loans (5,000) (5,000) - -
---------- ---------- ---------- ----------
Net assets 61,454 61,454 52,480 52,480
====== ====== ====== ======
Capital and reserves
Share capital 2,801 2,801 2,771 2,771
Capital redemption reserve 26,302 26,302 26,302 26,302
Other capital reserves
Share premium 9,034 9,034 8,398 8,398
Realised reserve 14,600 14,600 18,556 18,556
Unrealised appreciation/(depreciation) 7,696 7,696 (4,642) (4,642)
Revenue reserve 1,021 1,021 1,095 1,095
---------- ---------- ---------- ----------
Equity shareholders' funds 61,454 61,454 52,480 52,480
====== ====== ====== ======
Net asset value per ordinary share 109.68p 109.68p 94.68p 94.68p
====== ====== ====== ======
Funds attributable to:
Ordinary shares 61,454 52,480
Zero dividend preference shares in the Subsidiary 34,310 31,710
---------- ----------
95,764 84,190
====== ======
Net asset value per:
Ordinary share 109.68p 94.68p
Zero dividend preference share in the Subsidiary 65.22p 60.28p
---------- ----------
Unit 174.90p 154.96p
====== ======
- MORE -
- 5 -
HENDERSON HIGH INCOME TRUST PLC
Unaudited Preliminary Results for the year ended 31 December 2003
Group Cash Flow Statement
for the year ended 31 December 2003
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Net cash inflow from operating activities 5,846 5,370
Servicing of finance
Bank overdraft and loan interest paid (648) (924)
Taxation
Taxation recovered 13 133
Financial investment
Purchase of investments (33,115) (35,307)
Sale of investments 29,663 35,494
----------- -----------
Net cash (outflow)/inflow from financial investment (3,452) 187
Equity dividends paid (5,487) (5,345)
----------- -----------
Net cash outflow before financing (3,728) (579)
Financing
Issue of shares 666 2,881
Increase/(decrease) in debt 3,629 (3,518)
----------- -----------
Net cash inflow/(outflow) from financing 4,295 (637)
---------- ----------
Increase/(decrease) in cash 567 (1,216)
====== ======
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash as above 567 (1,216)
Cash (inflow)/outflow from increase/(decrease) in debt (3,629) 3,518
Exchange movements (91) (36)
---------- ----------
Movement in net debt (3,153) 2,266
Net debt at 1 January (18,941) (21,207)
---------- ----------
Net debt at 31 December (22,094) (18,941)
====== =====
-MORE-
- 6 -
HENDERSON HIGH INCOME TRUST PLC
Unaudited Preliminary Results for the year ended 31 December 2003
Notes:
1. Share Capital
At 31 December 2003 there were in issue 56,028,865 (2002: 55,428,865)
ordinary shares of 5p in the Company and 52,603,865 (2002: 52,603,865) zero
dividend preference shares of 50p in the Subsidiary.
During the year under review, 600,000 ordinary shares of 5p were allotted
and issued for cash consideration as follows:
Date Allottee No. of Shares Price per Share
30 September Apollo Nominees Limited 350,000 111.0p
3 October Winterflood Securities Limited 250,000 111.0p
Therefore, as at 31 December 2003, there were 56,028,865 ordinary
shares of 5p in issue (2002: 55,428,865).
2. Returns per Share
a) Returns per ordinary share
Revenue return per ordinary share is based on the earnings attributable to
the ordinary shares of £5,444,000 (2002: £5,408,000) and on the 55,578,043
weighted average number of ordinary shares in issue during the year (2002:
54,346,536).
Capital return per ordinary share is based on the net capital gain for the
year of £8,382,000 (2002: capital loss of £18,200,000) and on the 55,578,043
weighted average number of ordinary shares in issue during the year (2002:
54,346,536).
b) Returns per zero dividend preference share
Capital return per zero dividend preference share reflects the predetermined
growth in capital entitlement for the year of £2,600,000 (2002: £2,403,000)
based on the 52,603,865 (2002: 52,603,865) zero dividend preference shares
in issue.
c) Returns per unit
Revenue return per unit, each unit consisting of one ordinary share of
5p in the Company and one zero dividend preference share of 50p in the
Subsidiary, amounts to 9.79p per unit (2002: 9.95p per unit).
Capital return per unit, each unit consisting of one ordinary share of
5p in the Company and one zero dividend preference share of 50p in the
Subsidiary, amounts to 20.02p per unit (2002: loss of 28.92p per unit).
3. Group Accounts
The Group accounts consolidate the accounts of the Company and its
wholly owned Subsidiary, Henderson High Income Trust Securities plc.
-MORE-
- 7 -
HENDERSON HIGH INCOME TRUST PLC
Unaudited Preliminary Results for the year ended 31 December 2003
4. Dividend
A fourth interim dividend of 2.475p per ordinary share of 5p (2002:
2.475p per ordinary share of 5p) will be paid on 30 April 2004 to
shareholders on the register on 13 April 2004.
5. 2003 Accounts
The preliminary figures for the year ended 31 December 2003 are an
extract from the latest accounts of the Group. These accounts have not
yet been delivered to the Registrar of Companies, nor have the auditors
yet reported on them.
6. 2002 Accounts
The figures and financial information for the year ended 31
December 2002 are extracted from the latest published accounts of the
Group 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
statements under either section 237(2) or section 237(3) of the
Companies Act 1985.
7. Annual Report and Annual General Meeting
The full Annual Report and Accounts will be posted to shareholders
in March and copies will be available from the Secretary at the
Company's Registered Office, 4 Broadgate, London EC2M 2DA. The Annual
General Meeting will be held on Wednesday 28 April 2004.
- ENDS -
For further information please contact:
Alex Crooke Stephen Westwood
Fund Manager Head of Investment Trusts
Henderson High Income Trust plc Henderson Global Investors
Telephone: 020 7818 4447 Telephone: 020 7818 5517
Vicki Staveacre Stephen Phillips
Press Office Associate Director
Henderson Global Investors Henderson Global Investors
Telephone: 020 7818 4222 Telephone: 020 7818 6417
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 2 days ago IntegraFin Holding
- 2 days ago Spirent Communications
- 2 days ago CRH (CDI)
- 2 days ago Bezant Resources
- 2 days ago EJF Investments Ltd NPV