Annual report & accounts

JUPITER GREEN INVESTMENT TRUST PLC Preliminary announcement of the audited results for the period ended 31st March 2007. Chairman's Statement It gives me great pleasure to present your Company's audited financial statements for the period ended 31 March 2007. I am pleased to report that your Company has benefited from strong capital growth during the period under review. As indicated in my first Interim Report in March 2007, the Company has continued to benefit from unprecedented interest in environmental issues on both domestic and global levels. Increasingly investors are seeking ways to invest in companies providing solutions to environmental concerns and your Company continues to provide such opportunities to the investment market. During the period under review your Company's total assets, adjusted for the new Ordinary shares issued under the Company's block listing facility, rose by 22.3 per cent. to £31,679,000. This compares favourably with a rise in the Company's composite benchmark index of 18.4 per cent. over the same period. The Company's composite benchmark index is weighted to reflect the proportions of the Company's total assets which are managed by Jupiter Asset Management (measured against the FTSE World Smaller Companies ex US Index, which returned 21.5 per cent. for the period ) and by Winslow Management Company (measured against the Russell 2500 Growth Index in the USA, which returned 8.8 per cent. for the period). The diluted Net Asset Value of the Company's Ordinary shares, which is the Net Asset Value that would apply to the Ordinary shares in the event that all warrants in issue were to be exercised, rose by 19.2 per cent. to 115.75p during the period under review, whilst their middle market price rose by 18.5 per cent. to 118.50p. The undiluted Net Asset Value per Ordinary share increased by 22.3 per cent. to 118.70p. The middle market price of the warrants increased by 91.7 per cent. to 40.25p. As at 18 June 2007 the Company's unaudited undiluted Net Asset Value per Ordinary share had increased to 128.36p and their middle market price was 127.25p. The diluted Net Asset Value was 124.00p. The middle market price of the warrants was 50.75p. The Company's warrants, which were issued free-of-charge at launch on a one-for- five basis together with the Ordinary shares, had reached a middle market price of 50.75p on 18 June 2007. As such, an investor who invested £1,000 at launch would have held £1,272 in Ordinary shares and £102 in Warrants which, at their middle market prices on 18 June 2007, totals £1,374. This equates to an annualised return from launch to 18 June 2007 of 36.3 per cent. Under a block listing facility introduced by the Company in September 2006 the Company has been able to issue a number of additional shares to the market in order to meet the increasing demand for green investment opportunities. During the period under review a total of 1,658,859 Ordinary shares were issued to Shareholders at a premium to their Net Asset Value. Since the financial year end a further 819,117 Ordinary shares have been issued, bringing the total of Ordinary shares issued since the Company's launch to 2,477,976 (being approximately 10 per cent. of the issued share capital at launch). We hope that authority to issue up to a further 10 per cent. of the issued share capital will be granted to the Board at the forthcoming Annual General Meeting and that we will be in a position to make further issues of shares through the block listing facility during the new financial year. On 4 June 2007 the Board announced proposals for the enlargement of the Company through a C Share issue. We currently expect to publish a combined circular and prospectus in relation to the C Share issue which will be sent to Shareholders together with the printed copies of the Company's report and accounts. It is anticipated that an Extraordinary General Meeting for Shareholders to approve the proposals relating to the C Share issue will follow shortly after the Annual General Meeting. Full details will be announced in due course. At the forthcoming Annual General Meeting the Board is also seeking to renew its authority to buy back up to 14.99 per cent. of the Company's issued share capital. The authority to buy back shares, either for cancellation or to be held in treasury, represents a useful tool in managing any discount that may develop between the market price of the Company's Ordinary shares and their diluted Net Asset Value. As at 18 June 2007, the Ordinary shares were trading at a 2.6 per cent. premium to their fully diluted Net Asset Value. Your Company continues to make progress and adheres to the investment philosophy adopted at time of launch. Investment opportunities continue to evolve as demand for environmental solutions becomes more pressing. Your Company is well placed to take advantage of these opportunities, particularly in Europe and the US. The Manager's Review provides a useful overview of the market and the portfolio and I commend it to you. These are challenging times for the environment, however, they are also times of opportunity which your Company is in a unique position to benefit from. It is gratifying that your Company is providing some small encouragement to enterprise in the environmental solutions arena. Perry K O Crosthwaite Chairman 19 June 2007 Manager's Review PERFORMANCE REVIEW For the period from 8 June 2006 to 31 March 2007 the total return for the trust was 22.3 per cent. compared to a return of 18.4 per cent. for the Company's composite index. MARKET AND POLICY REVIEW The Jupiter Green Investment Trust was launched on 8 June 2006 and has since delivered a very satisfactory performance. There were a number of factors behind this performance. First, a positive market backdrop helped returns, with most major global indices ending higher. Generally benign macro economic conditions, strong corporate earnings and dividend growth, and accommodative credit conditions were major drivers. M&A activity, in particular, flourished under these conditions, providing a very solid backbone to markets globally. The period was not without its difficulties, however, with worries about the health of the US economy and rising global inflation muting performance at times during the period. But overall, these concerns were outweighed by positive sentiment. Second, and more significantly for the Company, we have recently entered a new era of global action in which governments, corporations and individuals are seeking to tackle social and ecological issues. At the governmental level, in particular, we are seeing a new phase of global negotiations to tackle climate change, with economic and environmental issues starting to converge in the larger debate over the environment. At the corporate level, a number of blue chip companies have taken a greener approach to business, recognising not only the social but economic benefits of doing so. This is creating opportunities for companies in which we invest and has helped the overall profitability of the SRI universe. The Company's bias towards innovative smaller and emerging companies has also helped performance. We apply a long-term approach to investing, selecting companies that have positive growth drivers and are addressing local and global environmental problems. The six key investment themes for the Jupiter Green Investment Trust are clean energy, water management, waste management, sustainable living, environmental services and green transport. With a growth in inter-governmental climate change initiatives, such as the European Union's recent commitment to a 20% reduction in carbon emissions from 1990 levels by 2020, governments are under increasing pressure to tackle the causes of climate change. Policies designed to increase renewable and alternative energy use are driving the growth of several portfolio holdings within the clean energy theme, including Nordex (wind), Vestas Wind Systems, Gamesa Corporacion Tecnologica (wind), Fuel-Tech (clean combustion)*** and SunPower (solar)***. The Eddington Transport Study, "Transport's role in sustaining the UK's productivity and competitiveness", published in December 2006, showed that the transport sector's contribution to the UK's greenhouse gas emissions is significant and growing. The report underlined the need for clean, efficient public transport to tackle climate change. Several green transport holdings should benefit from an ever increasing focus on the sector, including Go-Ahead, National Express and FirstGroup. The water management theme suffered from a short-term lack of investment opportunities following a long period of consolidation. We continue to believe in the long-term growth of this market, as the companies in this theme are important contributors to the supply of sustainable, clean and potable water throughout the world. Holdings within the environmental services theme made positive contributions to the Company's performance. Notable stocks included Latchways, RPS and WS Atkins. These stocks have all benefited from the improving outlook for both private and public sector spending, and greater focus on environmental issues as part of long-term planning. From the waste management theme, core holding Shanks made very strong gains. Ever increasing landfill tax and increasing local authority spending on recycling technology are driving growth in this area. Finally, within our sustainable living theme, we remain positive about growing consumer trends towards high quality, nutritious and organic foods. Our positions in Cranswick and Whole Foods Market*** ensure we have good exposure to these trends. The long-term view is particularly encouraging given the low penetration of organic foods in the UK, as well as the US. INVESTMENT OUTLOOK The growth drivers for the broader SRI sector are robust and increasing in intensity. Politicians, corporations and consumers are increasingly aware of, and are reacting to, social and environmental issues. The substantial earnings growth momentum of last year looks set to continue in this environment, though we are mindful that we are not immune to weakness caused by imbalances in the broader macroeconomic environment. Charlie Thomas Fund Manager Jupiter Asset Management Limited 19 June 2007. *** Positions held in the Winslow Management portfolio. All other positions mentioned are held directly within the portfolio managed by Jupiter Asset Management Limited. as at 31 March 2007 INCOME STATEMENT for the period ended 31 March 2007 Revenue Capital Total £'000 £'000 £'000 Gains on investments at fair value - 6,475 6,475 Foreign exchange loss - (409) (409) Income 322 - 322 ------ ------ ------ Total Income 322 6,066 6,388 ------ ------ ------ Investment management fee (224) - (224) Investment performance fee - (207) (207) Other expenses (269) - (269) ------ ----- ----- Total expenses (493) (207) (700) ------ ----- ----- Return on ordinary activities before taxation (171) 5,859 5,688 Taxation (8) - (8) ------ ----- ----- Net return after taxation (179) 5,859 5,680 ====== ===== ====== Return per Ordinary share p (0.69)p 22.54p 21.85p ====== ====== ====== The total column of this statement is the income statement of the Company, prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance produced by the Association of Investment Companies. All items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period. BALANCE SHEET at 31 March 2007 £'000 Non current assets Investments held at fair value through profit or loss 30,374 ------ Current assets Prepayments and accrued income 35 Cash and cash equivalents 2,009 ------ 2,044 ------ Total assets 32,418 ------ Current liabilities Accruals (301) Purchases awaiting settlement (438) ----- (739) ----- Total assets less current liabilities 31,679 ====== Capital and reserves Called up share capital 27 Share premium 1,680 Special reserve 24,292 Retained earnings 5,680 ------ Total equity shareholders' funds 31,679 ====== Net asset value per Ordinary share 118.70p ------ Diluted net asset value per Ordinary share 115.75p ------ STATEMENT OF CHANGES IN EQUITY for the period ended 31 March 2007 Share Share Special Retained Capital Premium Reserve Earnings Total £'000 £'000 £'000 £'000 £'000 Net profit for the period - - - 5,680 5,680 Ordinary shares issued 27 26,700 - - 26,727 Cost of Ordinary shares issued - (728) - - (728) Cancellation of share premium - (24,292) 24,292 - - ------ ------ ------ ------ ------ Balance at 31 March 2007 27 1,680 24,292 5,680 31,679 ====== ====== ====== ====== ====== CASH FLOW STATEMENT for the period ended 31 March 2007 £'000 Cash flows from operating activities Investment income received 215 Deposit interest received 80 Investment management fee paid (198) Realised loss on foreign currency (409) Other cash expenses (209) ------ Cash generated from operations (521) Taxation (8) ------ Net cash outflow from operating activities (529) ------ Cash flows from investing activities Purchase of investments (39,879) Sale of investments 16,418 ------ Net cash outflow from investing activities (23,461) ------ Cash flows from financing activities Shares issued 26,727 Share issue expenses paid (728) ------ Net cash inflow from financing activities 25,999 ------ Increase in cash 2,009 ------ Cash and cash equivalents at end of period 2,009 ====== NOTES: 1. Income £'000 Income from investments: Dividends from UK companies 191 Dividends from overseas companies 50 241 Other income: Deposit interest 81 322 Income from investments is derived: Listed on the UK Stock Exchange 191 Listed overseas 50 241 2. Reconciliation of net cash outflow from operating activities £'000 Net return before finance costs and taxation 5,688 Gains on investments (6,475) Increase in prepayments and accrued income (35) Increase in accruals and other creditors 301 Net cash outflow from operating activities (521) The preliminary announcement is prepared on the same basis as set out in the statutory accounts of the period ended 31 March 2007. The financial statements for the period ended 31 March 2007 were approved by the Board of Directors on 19 June 2007. The above financial information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. Statutory accounts for the period ended 31 March 2007 including an unqualified audit report and containing no statements under S237(2) or (3) of the Companies Act 1985 will be delivered to the Registrar of Companies in due course. The annual report will be sent to all registered and copies may be obtained from the registered office of the Company at 1 Grosvenor Place, London, SW1X 7JJ. By order of the Board Jupiter Asset Management Limited Secretaries For further information, please contact: Richard Pavry Director of Investment Trusts Jupiter Asset Management rpavry@jupiter-group.co.uk 020 7314 4822 Jonathan McGuire Company Secretary Jupiter Asset Management Limited jmcguire@jupiter-group.co.uk 020 7314 4773