Interim Results
Perpetual UK Smaller Co's IT PLC
12 September 2001
Perpetual UK Smaller Companies Investment Trust plc
Preliminary Announcement of Unaudited Financial Results
for the six months ended 31 July 2001
Chairman's Statement
It has been another difficult period for investors in all equity markets. As
a result, during the six months under review your Company's net asset value
suffered a decline of 9.5%, from 617.5p per ordinary share to 558.8p.
Although clearly disappointing, this performance compares favourably with the
decline of 18.8% in the Company's benchmark index, the Hoare Govett Extended
Smaller Companies Index (capital gains, excluding investment trusts), and the
FTSE All Share Index which fell by 12.1% over the same period. As in previous
years, no interim dividend is to be declared.
The Net asset value performance has proved better than share price performance
during the period. The Company's share price fell by 15.4%, widening the
discount to net asset value to 23% at the period end. Indeed, your Company's
shares have traded at discounts wider than the average discount for the UK
Smaller Companies sector throughout the period under review. The authority to
buy back shares in the Company has not been exercised in the period because,
notwithstanding the discount, the shares remain tightly held. However, we
keep the use of this power under close review.
I am pleased to welcome Mark Niznik as the new Portfolio Manager for your
Company. Mark has been a member of the Perpetual smaller companies team for
eight years and replaces John Sweet who announced his intention to step down
as Portfolio Manager after the AGM in May. I would like to take this
opportunity to thank John for his work for the Company and wish him well for
the future.
Looking to the future, your Manager continues to steer a steady course to
ensure that the portfolio benefits from an eventual stock market recovery.
Jamie Berry
Chairman
Perpetual UK Smaller Companies Investment Trust plc
Statement of Total Return
(Incorporating the Revenue Account)
Six months to 31 July 2001
(Unaudited)
Revenue Capital Total
£'000 £'000 £'000
Gains/(losses) on investments - realised - 5,007 5,007
- unrealised - (13,963) (13,963)
Income
UK dividends 1,410 - 1,410
Interest on loan stock 8 - 8
Deposit interest 1 - 1
Underwriting commission 1 - 1
Gross return 1,420 (8,956) (7,536)
Investment management fee (435) - (435)
Other expenses (66) - (66)
Net return before finance costs and taxation 919 (8,956) (8,037)
Interest payable and similar charges (193) - (193)
Return on ordinary activities before and after 726 (8,956) (8,230)
taxation
Dividends in respect of equity shares - - -
Transfer to/(from) reserves 726 (8,956) (8,230)
Basic return per ordinary share - note 1 5.2p (64.0)p (58.8)p
The revenue column of this statement is the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
Perpetual UK Smaller Companies Investment Trust plc
Statement of Total Return
(Incorporating the Revenue Account)
Year to
Six months to 31 July 31 January
2000 2001
(Unaudited) (Audited)
Revenue Capital Total Total
£'000 £'000 £'000 £'000
Investments - realised - 12,378 12,378 15,323
Gains/(losses) on - unrealised - (12,615) (12,615) (11,895)
Income
UK dividends 1,320 - 1,320 2,446
Interest in loan stock 18 - 18 32
Deposit interest 10 - 10 14
Underwriting commission 7 - 7 19
Gross return 1,355 (237) 1,118
5,939
Investment management fee (437) - (437) (1,057)
Other expenses (63) (3) (66) (153)
Net return before finance costs
and taxation 855 (240) 615 4,729
Interest payable and similar (79) - (79) (236)
charges
Return on ordinary activities
before and after taxation 776 (240) 536 4,493
Dividends in respect of equity - - - (1,078)
shares
Transfer to/(from) reserves 776 (240) 536 3,415
Basic return per ordinary share 5.5p (1.7)p 3.8p 32.0p
- note 1
Perpetual UK Smaller Companies Investment Trust plc
Balance Sheet
At At At
31 July 31 January 31 July
2001 2001 2000
(Unaudited) (Audited) (Unaudited)
£'000 £'000 £'000
Fixed Assets
Investments 85,822 99,059 86,443
Current assets
Amounts due from brokers 467 311 1,099
Tax recoverable - 5 10
Prepayments and accrued income 332 255 286
Cash at bank - 253 -
799 824 1,395
Creditors: amounts falling due within one year
Amounts due to brokers 486 526 1,632
Bank overdraft and short-term loans 7,731 11,322 2,362
Accruals and deferred income 161 484 121
Proposed dividends - 1,078 -
8,378 13,410 4,115
Net current liabilities (7,579) (12,586) (2,720)
Total assets less current liabilities 78,243 86,473 83,723
Capital and reserves
Called up share capital 14,003 14,003 14,028
Share premium account 21,244 21,244 21,244
Capital redemption reserve 25 25 -
Other reserves:
Capital reserve - realised 43,013 38,007 35,376
Capital reserve - unrealised (1,938) 12,024 11,304
Revenue reserve 1,896 1,170 1,771
Equity Shareholders' funds 78,243 86,473 83,723
Net asset value per ordinary share - note 2
Basic 558.8p 617.5p 596.8p
Perpetual UK Smaller Companies Investment Trust plc
Cash Flow Statement
Six months Year to Six months
to 31 July 31 to 31 July
2001 January 2000
(Unaudited) 2001 (Unaudited)
£'000 (Audited) £'000
£'000
Cash inflow/(outflow) from operating
activities 575 673 (9)
Returns on investments and servicing of
finance (249) (208) (93)
Taxation 5 - (4)
Capital expenditure and financial investment
Purchase of investments (16,538) (47,391) (23,296)
Sale of investments 20,623 40,526 25,709
Equity dividends paid (1,078) (1,501) (1,501)
Increase/(decrease) in cash 3,338 (7,901) 806
Net debt at beginning of the period (11,069) (3,168) (3,168)
Net debt at end of period (7,731) (11,069) (2,362)
Reconciliation of Movement in Shareholder's Funds
Six months Year to Six months
to 31 July 31 January to 31 July
2001 2001 2000
(Unaudited) (Audited) (Unaudited)
£'000 £'000 £'000
Revenue return for the period 726 175 776
Capital return for the period (8,956) 3,240 (240)
Shares purchased for cancellation - (129) -
Net movement in Shareholder's funds (8,230) 3,286 536
Opening Shareholder's funds 86,473 83,187 83,187
Closing Shareholder's funds 78,243 86,473 83,723
Perpetual UK Smaller Companies Investment Trust plc
Notes to the Interim Accounts
1. The revenue return per ordinary share is based on the net revenue
return on ordinary activities after taxation and on 14,003,206 (31 July 2000:
14,028,206, 31 January 2001: 14,028,104) ordinary shares, being the weighted
average number of ordinary shares in issue in the period.
The capital return per ordinary share is based on the net capital return on
ordinary activities after taxation and on 14,003,206 (31 July 2000:
14,028,206, 31 January 2001: 14,028,104) ordinary shares in issue in the
period.
2. The basic net asset value per ordinary share of £1 is calculated
on net assets of £78,243,000 ; (31 July 2000: £83,723,000 31 January 2001: £
86,473,000) and on 14,003,206 (31 July 2000: 14,028,206, 31 January 2001:
14,003,206) shares in issue.
3. It is the intention of the Directors to conduct the affairs of the
Company so that it satisfies the conditions for approval as an investment
trust company set out in section 842 of the Income and Corporation Taxes Act
1988.
4. The foregoing information at 31 January 2001 is an abridged
version of the Company's full accounts which carry an unqualified Auditor's
report and have been filed with the Registrar of Companies.
By order of the Board
INVESCO Asset Management Limited
Secretary
12 September 2001