Interim Results

Manchester & London Inv Tst PLC 18 February 2004 Manchester & London Investment Trust plc ANNOUNCEMENT OF THE UNAUDITED INTERIM GROUP RESULTS For the six months ended 31st January 2004 Attached pages 1 - 5 Enquiries : Manchester & London Investment Trust plc Brian S. Sheppard Tel: 0161 228 1709 Brokers : Midas Investment Management Limited Mark B. B. Sheppard Tel: 0161 228 1709 Manchester & London Investment Trust plc Announcement of the interim group results The Directors announce the unaudited interim figures For the six months ended 31st January 2004 Consolidated Statement of Total Return (incorporating the revenue account) For the six months ended 31st January 2004 (unaudited) Six months ended 31st January 2004 Six months ended 31st January 2003 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Profit on sale of investments - 290 290 - 2,503 2,503 Increase (decrease) in unrealised - 2,783 2,783 - (3,818) (3,818) appreciation Investment income 499 - 499 546 - 546 Investment management fee (25) (48) (73) (24) (46) (70) Other expenses (105) - (105) (105) - (105) Return on ordinary activities before 369 3,025 3,394 417 (1,361) (944) taxation Taxation - - - (6) 6 - Return on ordinary activities after 369 3,025 3,394 411 (1,355) (944) taxation Dividends in respect of non-equity (28) - (28) (28) - (28) shares Return attributable to equity 341 3,025 3,366 383 (1,355) (972) shareholders Dividends in respect of equity shares (188) - (188) (188) - (188) Transfer to (from) reserves 153 3,025 3,178 195 (1,355) (1,160) Return per ordinary share (pence) Basic 4.55 40.33 44.88 5.11 (18.07) (12.96) Fully diluted 3.52 28.87 32.39 3.92 (12.93) (9.01) The revenue column of this statement is the consolidated profit and loss account of the group. All revenue and capital items in the above statement derive from continuing operations. The statement for the period ended 31st January 2004 is unaudited and is not the Company's statutory statement. Dividends per preference share accrue at the rate of 7.6% p.a. Interim dividend proposed per 25p ordinary share of 2.5p (2003: 2.5p) The ordinary interim dividend is payable on 19th April 2004 to shareholders on the Register at the close of business on 23rd March 2004. Page 1 Manchester & London Investment Trust plc Consolidated Balance Sheet At 31st January 2004 (unaudited) As at 31st January 2004 As at 31st January 2003 £'000 £'000 £'000 £'000 Fixed Assets Investments 24,836 14,169 Current Assets Debtors 71 134 Cash and short term deposits 4,015 13,697 4,086 13,831 Creditors Amounts falling due within one year (894) (5,981) Net Current Assets 3,192 7,850 Total assets less current 28,028 22,019 liabilities Capital and Reserves Called-up Share Capital 2,619 2,619 Capital reserves 22,650 16,691 Revenue reserve 2,759 2,709 Total shareholders' funds 28,028 22,019 Equity interests - Ordinary shares 27,284 21,275 Non-equity interests - Preference shares 744 744 28,028 22,019 Net Asset Value per share Ordinary shares - basic 363.8p 283.7p Ordinary shares - fully diluted 267.5p 210.2p Notes: The accounts at 31st January are unaudited and are not the Company's statutory accounts. The information for the period ended 31st January 2003 does not constitute statutory accounts but has been extracted from the latest published audited accounts which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 237(2) or (3) of the Companies Act 1985. Page 2 Manchester & London Investment Trust plc Consolidated Cash Flow Statement For the six months ended At 31st January2004 (unaudited) Six months ended Six months ended 31 January 2004 31 January 2003 £'000 £'000 £'000 £'000 Operating activities Net dividends and interest received from investments 506 1,027 Other income 88 95 Investment management fees paid (79) (66) Other cash payments (90) (101) Net cash inflow from operating activities 425 955 Servicing of finance Preference dividend paid (28) (28) Net cash outflow from servicing of finance (28) (28) Financial investment Purchase of investments (2,786) (2,520) Sale of investments 1,116 15,332 Net cash (outflow) inflow from financial (1,670) 12,812 investment Equity dividends paid - (450) Financing Repayment of loan note (5,413) - Net cash outflow from financing (5,413) - (Decrease) increase in cash (6,686) 13,289 Reconciliation of net cash flow to movement in net funds (Decrease) increase in cash in (6,686) 13,289 period Net funds at beginning of the period 10,701 408 Net funds at end of the period 4,015 13,697 Page 3 Manchester & London Investment Trust plc Largest Holdings At 31st January 2004 Holding Market Value % of £'000 Portfolio PZ Cussons Ordinary and 'A' Ordinary 10p 475,250 4,558 15.78 TDG Ordinary 1p 1,875,000 3,872 13.40 Mouchel Parkman Ordinary 1p 1,230,500 3,199 11.07 Woolworths Group Ordinary 12.5p 6,700,000 2,714 9.39 BAE SYSTEMS Ordinary 2.5p 1,500,000 2,468 8.54 Pilkington Ordinary 50p 2,225,000 2,231 7.72 Shell Transport & Trading 500,000 1,810 6.26 Ordinary 25p Scottish & Newcastle Ordinary 20p 400,000 1,583 5.48 Other investments 2,401 8.31 Total investments 24,836 85.95 Short term cash deposits and dealing debtor 4,060 14.05 28,896 100.00 Page 4 Manchester & London Investment Trust plc Chairman's Statement Since the Company's year end, the FTSE Actuaries All-Share Index has made further progress and continued its climb out of the depressed trough into which it fell during March last year, and it now seems safe to assume that the 2000/ 2003 bear market is behind us, for the time being at least. This does not mean, however, that there are no problems confronting stock markets, merely that new, albeit less virulent ones, have replaced the reasons for the forced selling which was the principal cause of the 2000/2003 decline. Against this background our net asset value per share has grown by 12.77% during the first half of the current year, which compares with a 6.91% increase in the FTSE Actuaries All-Share Index. The prevailing circumstances seem to be unique in the history of post-war Keynesian economic management insofar as established theories seem to have been turned upside down. Imbalances continue to persist in many Western economies, notably the US and the UK, where high levels of consumer and government spending have somewhat surprisingly failed to be reflected in the inflation figures. The Chinese and Asian factors are certainly part of the explanation for the low and falling prices of a wide range of consumer items, and similar circumstances apply on the Continent where government borrowings have resulted in breaches of the somewhat unfortunately named 'Stability and Growth Pact'. The US Authorities are blatantly pursuing a weak dollar policy to solve their imbalances and effectively exporting their problems to Europe, which continues to persist with relatively high interest rates reflecting historic fears of inflation. Wedged somewhere in between and sporting an exchange rate close to a two dollar pound is the UK which, if history is anything to go by, is re-writing the text books to the extent that the burgeoning balance of payments deficit not only no longer appears to matter, but is being accompanied by a rising currency against a background of still low interest rates. We therefore remain nervous as to whether the economy can indefinitely remain buoyed by what appears to be an excessive level of both consumer and government debt. The balancing act between deflation and inflation continues and the portfolio reflects our efforts to contend with those uncertainties. Our main holdings remain unchanged. We have realised a good profit on part of our holding in Mouchel Parkman, but still retain an investment in excess of £3m. The recent merger has been smoothly effected and the outlook for the company continues to be positive. Also, during the period under review we have taken advantage of the fall in the price of Shell and acquired a holding of 500,000 shares, as we believe that if the company is forced by institutional pressure to modernise its somewhat archaic management structure, the price could rebound to the higher level of its peers. The cash balance of over £4m reflects liquidity of 14% thus leaving us in a position to take advantage of any opportunities which may arise despite the unusual combination of economic circumstances which currently prevail. We also have substantial borrowing facilities in the, at present, unlikely event of wishing to commit further funds to the market. Interest rates in the UK now appear to be on a rising trend, reflecting the official view that the continuing consumer boom should be reigned in and that any inflationary sparks should be extinguished sooner rather than later. It nevertheless seems unlikely that the current trend will push rates beyond 5% unless there is a material change in circumstances. The Company has a strong balance sheet with substantial revenue reserves backing our current dividend policy. With this in mind, the Directors have today declared an unchanged Interim Dividend of 2.5p per share which will be paid on 19th April 2004 to shareholders on the Register at the close of business on 23rd March 2004. P. H. A. Stanley FCA Chairman 18th February 2004 Page 5 This information is provided by RNS The company news service from the London Stock Exchange

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