Interim Results
Henderson Strata Investments PLC
15 June 2001
EMBARGOED FOR RELEASE AT 7.00 AM ON FRIDAY 15 JUNE 2001
HENDERSON GLOBAL INVESTORS
HENDERSON STRATA INVESTMENTS PLC
15 June 2001
HENDERSON STRATA INVESTMENTS plc
Unaudited Interim Results for the Half Year ended 30 April 2001
Highlights
* Disappointing six months
* Continued focus on growth companies
* Outlook improving
The Chairman's Statement:
Net Assets
The net asset value per share fell 29.2% in the six months to the end of April
while the FTSE SmallCap Index (excluding investment companies) was down 6.6%,
excluding income.
Review
The slowing US economy has hit some share prices hard in the past six months.
The speed and severity of the slowdown has surprised many companies and in
particular technology-related businesses which had been expanding fast. The
net asset value has suffered because many of the underlying investments are
involved in the technology and media sectors.
Portfolio
Our focus on growth companies has produced a disappointing result in the last
six months after the strong performance in the year ended October 2000. It has
been increasingly difficult to predict the short term outlook for many
companies and this has led to volatility and lower share prices. Individual
companies have been sold from the portfolio where their medium term earnings
prospects had become less certain. Additionally, valuations had moved ahead to
levels which in hindsight proved to be excessive. This has led us to reduce
the borrowings to just under £10 million. The position is now more settled and
we are not making major changes to the portfolio.
Since the launch of Strata in 1985 we have favoured companies with above
average growth prospects and we believe such investments will continue to
produce above average returns for investors over the long term. The current
bias to technology companies, and computer systems companies in particular, is
based on the undoubted importance of information technology to the major
companies operating in the world today.
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HENDERSON STRATA INVESTMENTS plc
Unaudited Interim Results for the Half Year ended 30 April 2001
Outlook
Interest rates have been reduced in most of the major economies in 2001. The
US authorities have been the most decisive in attempting to rejuvenate their
weakening economy. It has not so far stemmed the steady stream of profit
warnings from US companies nor an increasing number from UK and European
companies.
We remain convinced of the soundness of our strategy but we may not see a
decisive move up until we hear more optimistic news on US economic prospects.
Frans ten Bos
Chairman
14 June 2001
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HENDERSON STRATA INVESTMENTS plc
Unaudited interim results for the half year ended 30 April 2001
Statement of Total Return (incorporating the revenue account)
for the half year ended 30 April 2001
(unaudited) (unaudited)
Half Year ended Half Year ended
30 April 2001 30 April 2000
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Total
capital
(losses)/gains
from
investments - (51,657) (51,657) - 57,401 57,401
Income from 383 - 383 435 - 435
fixed asset
investments
Other
interest
receivable
and
similar 76 - 76 28 - 28
income
--------- -------- -------- --------- --------- ---------
Gross
revenue and
capital
gains/(losses) 459 (51,657) (51,198) 463 57,401 57,864
Management (784) - (784) (930) - (930)
fee
Other (98) - (98) (137) - (137)
administrative
expenses
--------- -------- -------- --------- --------- ---------
Net
loss/(return)
on
ordinary
activities
before
interest
payable
and taxation (423) (51,657) (52,080) (604) 57,401 (56,797)
Interest (431) - (431) (498) - (498)
payable
--------- -------- -------- --------- -------- --------
Net
(loss)/return
on
ordinary
activities (854) (51,657) (52,511) (1,102) 57,401 56,299
before
taxation
Taxation on
net
(loss)/return
on
ordinary (19) - (19) (18) - (18)
activities
--------- -------- -------- --------- --------- ---------
Net
(loss)/return
on
ordinary
activities (873) (51,657) (52,530) (1,120) 57,401 56,281
after
taxation
Dividend - - - - - -
--------- -------- -------- --------- --------- ---------
Transfer (873) (51,657) (52,530) (1,120) 57,401 56,281
(from)/to
reserves
======= ======= ======= ======= ======= =======
(Loss)/return (4.95)p (293.17)p (298.12)p (6.37)p 326.65p 320.28p
per
ordinary
share
(audited)
Year ended
31 October 2000
Revenue Capital Total
£'000 £'000 £'000
Total capital (losses)/gains from
investments - 55,857 55,857
Income from fixed asset 943 - 943
investments
Other interest receivable and
similar income 125 - 125
---------- ---------- ---------
Gross revenue and capital
gains/(losses) 1,068 55,857 56,925
Management fee (1,873) - (1,873)
Other administrative expenses (208) - (208)
---------- ---------- ---------
Net loss/(return) on ordinary
activities before interest
payable
and taxation (1,013) 55,857 54,844
Interest payable (1,003) - (1,003)
---------- ---------- ---------
Net (loss)/return on ordinary
activities before taxation (2,016) 55,857 53,841
Taxation on net (loss)/return on
ordinary activities (38) - (38)
---------- ---------- ---------
Net (loss)/return on ordinary
activities after taxation (2,054) 55,857 53,803
Dividend - - -
---------- ---------- ---------
Transfer (from)/to reserves (2,054) 55,857 53,803
======= ======= ======
(Loss)/return per ordinary share (11.69)p 317.87p 306.18p
The revenue columns of this statement represent the revenue accounts of the
Company.
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HENDERSON STRATA INVESTMENTS plc
Unaudited interim results for the half year ended 30 April 2001
Balance Sheet
at 30 April 2001
(unaudited) (unaudited) (audited)
30 April 30 April 31 October 2000
2001 2000 £000
£000 £000
Fixed asset investments
Investments at market value 136,632 199,795 197,533
---------- ---------- ----------
Current assets
Debtors 966 4,554 947
Cash at bank and in hand 650 - 965
---------- ---------- ----------
1,616 4,554 1,912
Creditors: amounts falling due within (10,725) (22,372) (19,946)
one year
---------- ---------- ----------
Net current liabilities (9,109) (17,818) (18,034)
---------- ---------- ----------
Total net assets 127,523 181,977 179,499
====== ====== ======
Capital and reserves
Issued share capital 4,406 4,393 4,393
Share premium account 16,479 15,937 15,937
Realised profits 82,478 76,355 85,052
Unrealised profits 27,178 86,501 76,261
Revenue reserve (3,018) (1,209) (2,144)
---------- ---------- ----------
Equity shareholders' funds 127,523 181,977 179,499
====== ====== ======
Net asset value per ordinary share 723.64p 1035.59p 1021.49p
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HENDERSON STRATA INVESTMENTS plc
Unaudited interim results for the half year ended 30 April 2001
Cash Flow Statement
for the half year ended 30 April 2001
(unaudited) (unaudited) (audited)
Half year Half year Year ended
ended ended
31 October
30 April 30 April 2000
2001 2000
£'000
£'000 £'000
Net cash outflow from operating activities (684) (366) (1,251)
Net cash outflow from servicing of finance (427) (478) (993)
Net tax recovered - 9 17
Net cash inflow/(outflow) from
financial investment 9,390 (18,351) (13,499)
---------- ---------- ----------
Net cash inflow/(outflow) before financing 8,279 (19,186) (15,726)
Net cash (outflow)/inflow from financing (8,556) 18,104 15,611
---------- ---------- ----------
Decrease in cash (277) (1,082) (115)
====== ====== ======
Reconciliation of operating revenue to net
cash
inflow from operating activities
Net loss before interest payable and (423) (604) (1,013)
taxation
(Increase)/decrease in accrued income (47) 12 17
Decrease/(increase) in other debtors 15 - (3)
(Decrease)/increase in other creditors (208) 247 (189)
Tax on unfranked investment income (21) (21) (55)
deducted at source
Scrip dividends included in investment - - (8)
income
---------- ---------- ----------
Net cash inflow from operating activities (684) (366) (1,251)
====== ====== ======
Reconciliation of net cash flow to
movement in net funds
Decrease in cash as above (277) (1,082) (115)
Cash outflow/(inflow) from decrease/ 9,111 (18,104) (15,611)
(increase) in loans
Exchange difference (38) (390) (392)
---------- ---------- ----------
Movement in net debt 8,796 (19,576) (16,118)
Net debt at start of period (18,146) (2,028) (2,028)
---------- ---------- ----------
Net debt at end of period (9,350) (21,604) (18,146)
====== ====== ======
Represented by:
Cash 650 - 965
Debt falling due within one year (10,000) (21,604) (19,111)
---------- ---------- ----------
(9,350) (21,604) (18,146)
====== ====== ======
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HENDERSON STRATA INVESTMENTS plc
Unaudited interim results for the half year ended 30 April 2001
NOTES
1. Issue of new ordinary shares
During the half year ended 30 April 2001, the Company issued 50,000 new
ordinary shares of 25p each for consideration of £555,000. There were
17,622,350 ordinary shares in issue at 30 April 2001.
2. Return per ordinary share
Revenue return per ordinary share is based on the net revenue loss on
ordinary activities after taxation on £873,000 (half year ended 30 April
2000: £1,120,000 loss; year ended 31 October 2000: £2,054,000 loss) and on
the weighted average number of 17,619,864 ordinary shares in issue during
the period (half year ended 30 April 2000: 17,572,350; year ended 31
October 2000: 17,572,350).
Capital return per ordinary share is based on the net capital loss of £
51,657,000 (half year ended 30 April 2000: £57,401,000 gains; year ended
31 October 2000: £55,857,000 gains) and on the weighted average number of
17,619,864 ordinary shares in issue during the period (half year ended 30
April 2000: 17,572,350; year ended 31 October 2000: 17,572,350).
3. Comparative information
The figures and financial information for the year ended 31 October 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 section 237(3) of the Companies Act 1985.
4. Interim Report
The interim report will be sent to shareholders early in July 2001 and
copies will be available from the Company's registered office, 4
Broadgate, London EC2M 2DA.
- ENDS -
For further information, please contact:
Richard Smith or Vicki Staveacre
Henderson Strata Investments plc The Press Office
Telephone: 020 7410 4368 Henderson Global Investors Limited
Telephone: 020 7410 4222
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