Final Results

Edinburgh US Tracker Trust PLC 13 March 2002 13 March 2002 EDINBURGH US TRACKER TRUST PLC RESULTS FOR THE YEAR ENDED 31 JANUARY 2002 Edinburgh US Tracker Trust aims to achieve long term growth of capital and income by tracking the performance of the S&P Composite Index. HIGHLIGHTS • NAV fell by 14.0% compared to a fall in the S&P Composite of 14.5% • Share price fell by 11.7% to 660p - representing a 0.2% premium to NAV • Revenue per share rose from 4.74p to 4.88p per share • Total dividend remains unchanged at 4.85p For further information, please contact: David McCraw, Director Edinburgh Fund Managers plc 0131 313 1000 Ian Massie, Director Edinburgh Fund Managers plc 0131 313 1000 EDINBURGH US TRACKER TRUST PLC Chairman's Statement - 31 January 2002 I am pleased to report that the company continues to meet the objective of tracking the performance of the S&P Composite Index. In the 12 months to 31 January 2002, the net asset value per share (NAV) fell by 14.0% to 658.77p compared to a fall of 14.5% in the index (in sterling terms). The difference in the returns was attributable to the timing of the sales of non index stocks received through spin-offs from constituents of the index and the benefit from issuing new shares at a premium to net asset value. Since the investment objective of the company was revised in June 1997, the capital performance has matched that of the index to within 0.5% per annum. This close tracking of the index confirms the reliability of the tracking methodology employed by the company. The company's share price fell by 11.7% over the year to 660p. At 31 January 2002 that price represented a premium of 0.2% to the net asset value of 658.77p. At the start of the financial year, the share price had been trading at a discount to the net asset value of 2.5%. The company's shares traded at a premium to the net asset value for most of last year and a total of 4,910,000 new shares were issued at small premia to meet investor demand. Revenue Revenue per share rose from 4.74p to 4.88p per share. The increase was attributable mainly to the favourable movement in the value of sterling. Your board is recommending a final dividend of 2.85p which will take the total dividends for the year to 4.85p, which is unchanged from last year. Marketing Last year the Association of Investment Trust Companies (AITC) decided that a financial contribution to promotional activities would be a compulsory part of an investment trust's continuing membership. The issues which the AITC's marketing campaign seeks to address are less relevant to a trust which is a tracker fund and whose shares are trading at a premium to net asset value. Your board decided that it was inappropriate to commit shareholders' funds to this marketing effort and we have withdrawn from the AITC. Your board continues to promote the company through the manager's marketing initiative. This provides a series of savings schemes by which savers can invest in Edinburgh US Tracker Trust in a low cost and convenient manner. The company contributed £90,000 to this initiative during the past year. Up to date information about the company is available on the company's website on www.edinburghustracker.com. Annual General Meeting The company's Articles of Association require shareholders to vote on the continuation of the company at every Annual General Meeting. Accordingly, a resolution to this effect will be proposed as Special Business at the Annual General Meeting to be held on 13 May 2002. If this resolution is not passed, the company will be liquidated later this year. Liquidation would result in a disposal of the company's shares for taxation purposes and therefore shareholders should consider carefully whether they wish the company to be wound up. There will be another opportunity to consider the future of the company at the same time next year. The economic strength of the US lies in the size of the market place, the mobility of labour and an entrepreneurial culture. These factors have combined to create an environment where a large number of US companies have emerged as world leaders in many industries. Edinburgh US Tracker Trust provides shareholders with a broadly diversified portfolio which covers the top 500 companies in the Unites States of America. I believe that our investment performance, aided by low management and administration costs, as evidenced by the total expense ratio of 0.3%, underlines the attractions of the index tracking approach to investors. Your board therefore strongly recommends all shareholders to vote in favour of the resolution. Also under Special Business, an ordinary resolution proposing an increase in the authorised share capital of the company will be put before shareholders. The increase in the authorised share capital is required to facilitate the potential issue of new shares in the company. In conjunction with this, an ordinary resolution is also proposed granting the directors authority to allot relevant securities up to an aggregate nominal amount of £7,365,097. That figure equates to one-third of the company's existing issued ordinary share capital and is in accordance with institutional guidelines. The directors are also seeking shareholder approval to renew the authority to issue new shares for cash to meet investor demand provided the subscription price is not below the net asset value per share. Your board also currently has authority to purchase the company's shares for cancellation. This authority would only be exercised were the shares persistently to trade at a discount in excess of the levels reached in recent years. Special resolutions proposing an extension of these facilities will be put to shareholders at the Annual General Meeting. Board of Directors The Earl of Mansfield, having passed the age of 70, will not be seeking re-election at the forthcoming Annual General Meeting. Lord Mansfield joined the board in 1985 and on behalf of shareholders and the board I should like to take this opportunity of thanking him for his valuable contribution to the affairs of the company over many years. James Ferguson, who has many years of investment experience and is a former Chairman of Stewart Ivory, was appointed to the board on 12 March 2002 and will stand for re-election at the Annual General Meeting. Sir Angus Grossart Chairman 13 March 2002 STATEMENT OF TOTAL RETURN for the year ended 31 January 2002 (audited) Revenue Capital Total £000 £000 £000 Realised gains on investments - 288 288 Decrease in unrealised appreciation - (90,394) (90,394) Foreign exchange gains - 224 224 Total capital losses on investments - (89,882) (89,882) Investment income 7,696 - 7,696 Interest receivable 105 - 105 Investment management fee (1,433) - (1,433) Administrative expenses (439) - (439) Net return before taxation 5,929 (89,882) (83,953) Taxation (1,766) - (1,766) Return on ordinary activities after taxation 4,163 (89,882) (85,719) Dividends in respect of equity shares (4,219) - (4,219) Transfer from reserves (56) (89,882) (89,938) Return per ordinary share 4.88p (105.27p) (100.39p) STATEMENT OF TOTAL RETURN for the year ended 31 January 2001 (audited) Revenue Capital Total £000 £000 £000 Realised gains on investments - 15,692 15,692 Increase in unrealised appreciation - 38,562 38,562 Foreign exchange gains - 273 273 Total capital losses on investments - 54,527 54,527 Investment income 7,507 - 7,507 Interest receivable 161 - 161 Investment management fee (1,623) - (1,623) Administrative expenses (463) - (463) Net return before taxation 5,582 54,527 60,109 Taxation (1,636) - (1,636) Return on ordinary activities after taxation 3,946 54,527 58,473 Dividends in respect of equity shares (4,039) - (4,039) Transfer from reserves (93) 54,527 54,434 Return per ordinary share 4.74p 65.48p 70.22p BALANCE SHEET (audited) as at 31 January 2002 2002 2001 £000 £000 £000 £000 Fixed assets Investments 580,194 637,898 Current assets Debtors 2,069 829 Cash and short term deposits 2,977 3,248 5,046 4,077 Creditors: amounts falling due within one year 4,174 3,609 Net current assets 872 468 581,066 638,366 Provision for liabilities and charges (154) (155) 580,912 638,211 Capital and reserves Called up share capital 22,045 20,816 Share premium 31,410 - Capital reserve - realised 350,851 350,339 Capital reserve - unrealised 175,325 265,719 Revenue reserve 1,281 1,337 Total equity shareholders' funds 580,912 638,211 Net asset value per equity share 658.77p 766.43p CASHFLOW STATEMENT (audited) for the year ended 31 January 2002 2002 2001 £000 £000 £000 £000 Net cash inflow from operating activities 5,857 5,568 Taxation UK corporation tax paid (628) (656) Overseas tax paid less recovered (1,136) (1,092) Total tax paid (1,764) (1,748) Financial Investment Purchase of investments (39,520) (42,636) Sale of investments 7,692 42,829 Net cash outflow from financial investment (31,828) 193 Equity dividends paid (4,079) (4,039) Net cash outflow before financing (31,814) (26) Financing Issue of ordinary shares 31,319 - Net cash outflow from financing 31,319 - Decrease in cash (495) (26) NOTES : 1. The accounts are prepared under the same accounting policies used for the year to 31 January 2001. 2. The proposed final dividend, subject to shareholder approval, will be paid on 14 May 2002 to shareholders on the register at the close of business on 19 April 2002. The ex-dividend date is 17 April 2002. 3. The statement of total return, the balance sheet and the cashflow statement set out above do not represent full accounts in accordance with Section 240 of the Companies Act 1985. The financial information for the year ended 31 January 2001 has been extracted from the Annual Report and Accounts of the Company which have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified. The statutory accounts for 2002 are unqualified and will be delivered to the Registrar of Companies following the Company's Annual General Meeting which will be held on 13 May 2002 at 11.00am. 4. The Annual Report and Accounts will be posted to shareholders on 2 April 2002 and copies will be available from the investment manager. Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested. For Edinburgh US Tracker Trust plc Edinburgh Fund Managers plc, Secretary END This information is provided by RNS The company news service from the London Stock Exchange
UK 100

Latest directors dealings