Final Results

Schroder AsiaPacific Fund PLC 11 November 2003 11 November 2003 SCHRODER ASIAPACIFIC FUND PLC Unaudited Preliminary Results The Directors of Schroder AsiaPacific Fund plc announce the unaudited preliminary results for the year ended 30 September 2003. Unaudited Statement of Total Return for the year ended 30 September 2003 For the year ended For the year ended 30 September 2003 30 September 2002 Revenue Capital Total Revenue Capital Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Gains on investments - 24,889 24,889 - 7,388 7,388 Exchange gains - 694 694 - 1,202 1,202 Income 3,124 - 3,124 2,444 - 2,444 Administrative expenses (402) - (402) (260) - (260) Investment management (944) - (944) (1,047) - (1,047) fee Return before finance 1,778 25,583 27,361 1,137 8,590 9,727 costs and taxation Interest payable and (197) - (197) (300) - (300) similar charges Return on ordinary 1,581 25,583 27,164 837 8,590 9,427 activities before taxation Tax on ordinary (487) - (487) (229) - (229) activities Return attributable to 1,094 25,583 26,677 608 8,590 9,198 equity shareholders Final dividend (1,044) - (1,044) (557) - (557) Transfer to reserves 50 25,583 25,633 51 8,590 8,641 Return per ordinary 0.79p 18.38p 19.17p 0.44p 6.17p 6.61p share Dividend per ordinary 0.75p - 0.75p 0.40p - 0.40p share At At Summary Balance Sheet 30 September 2003 30 September 2002 Assets Â£'000 Â£'000 Listed investments at market value 127,991 94,441 Net current liabilities (16,363) (8,427) Creditors: amounts due after more than one year (42) (61) Net Assets 111,586 85,953 Net asset value per ordinary share (undiluted) 80.16p 61.75p Abridged Cash Flow Statement Year ended Year ended 30 September 2003 30 September 2002 Â£'000 Â£'000 Net cash inflow from operating activities 1,831 1,194 Net cash outflow from returns on investments and servicing of finance (238) (334) Tax (paid)/recovered (237) 90 Net cash outflow from financial investment (7,102) (10,123) Equity dividends paid (557) - Net cash inflow from financing 3,091 5,798 Net cash outflow (3,212) (3,375) Reconciliation of net cash inflow to movement in net debt Year ended Year ended 30 September 2003 30 September 2002 Â£'000 Â£'000 Net cash outflow during the year (3,212) (3,375) Increase in bank loan to finance investments (3,091) (5,799) Exchange gains on revaluation of currency 694 1,202 Change in net debt (5,609) (7,972) Net debt brought forward (7,777) 195 Net debt carried forward (13,386) (7,777) The financial information set out in the announcement does not constitute the Company's statutory accounts for the year ended 30 September 2003. The financial information for the year ended 30 September 2002 is derived from the statutory accounts for the year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for the year ended 30 September 2003 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting. This statement was approved by the Board of Directors on 11 November 2003. Statement by the Chairman, The Hon Rupert Carington: Investment Performance During the year ended 30 September 2003 the Company's undiluted net asset value per share produced a total return of 30.9%. This compares favourably with a total return of 25.8% in sterling terms produced by the Company's benchmark Index, the Morgan Stanley All Countries Far East (Free) excluding Japan Index over the same period. The year under review continued to be extremely volatile for regional markets. The gains reported for the year mask a significant volatility in net asset values: a significant decrease in net asset value during the first half of the year was more than offset by a significant rally during the second half after the end of formal hostilities in Iraq, a successful containment of the SARS outbreak and subsiding concerns over North Korea. Dividend The Company's investment objective is one of capital growth. However, to ensure that the Company continues to meet the requirements to qualify as an investment trust, the Directors recommend the payment of a final dividend of 0.75 pence per share for the year ended 30 September 2003. If the resolution proposed at the Annual General Meeting to pay a final dividend is passed, the dividend will be mailed to shareholders on 12 February 2004. Dividends will continue to fluctuate year by year depending on income received and the circumstances of the Company. Gearing Policy During the year the Board has continued to utilise the flexibility allowed by the structure of its gearing facility to respond to changing market conditions. Actual drawdown of the facility fluctuated between US$15 million and US$25 million, being the amount drawn at the end of the financial year. In October 2003, the facility was increased to US$35 million, the additional US$10 million immediately being drawn, and it has remained fully drawn since that time. Purchase of Shares for Cancellation At the Company's last Annual General Meeting on 13 February 2003, the Company was given the authority to purchase up to 14.99% of the Company's issued share capital for cancellation. The share buy-back facility is one of a number of tools that may be used to enhance shareholder value and to reduce the discount volatility. During the year ended 30 September 2003, the Directors have not utilised the authority given to them and no purchases were made for cancellation. The Board continues to consider whether purchases should be made on a regular basis, and therefore proposes that the authority be renewed at the forthcoming Annual General Meeting. Corporate Governance Since I last reported to shareholders, two new significant governance codes have been published. The first, published by the Financial Reporting Council, will form the new Combined Code and will apply to all UK listed companies, for accounting periods beginning on or after 1 November 2003. The second is the Association of Investment Trust Companies' ('AITC') Code of Corporate Governance, which applies to AITC member companies. In addition, new listing rules for investment companies were published in October 2003. These codes and regulations will together create a new governance environment for investment trusts, and the Board has commenced a review of all aspects of corporate governance. This will include an examination of the role of the board, its remit, composition, experience and performance, the work and terms of reference of the committees of the Board, and the management of its relationships with major suppliers and with its shareholders. Warrantholders' Circular On 2 February 2004, warrantholders will have a further opportunity to exercise their subscription rights. A Circular reminding them of this opportunity and setting out the steps they must take if they wish to exercise their subscription rights will be distributed with the Report and Accounts. Warrantholders should be aware that they will have further opportunities to exercise their subscription rights in 2005 and 2006. Outlook Last year, I reported in my statement that the Board was cautiously optimistic on prospects for regional stock markets in the medium term. This appears to have been justified by events in that regional markets largely produced strong performance during the year. This optimism is due to the current strength of the US economy, the continued improvement in corporate balance sheets, signs of a turn in domestic economic cycles, and the emergence of investment opportunities giving access to fast growing consumer markets in China and India. We are also encouraged by moderate valuation levels in regional companies. As always there are risks, with the markets remaining sensitive to developments in the US economy and stock market, for example, but we believe that the region is well-positioned to benefit from any further international economic recovery, as well as growth in domestic markets. Our confidence is reflected in the Company's use of all of its gearing facility, as mentioned above. Annual General Meeting The Annual General Meeting will be held on Wednesday 11 February 2004 and shareholders are encouraged to attend. As in previous years, Mr Matthew Dobbs will give a presentation on the prospects for Asia and the Company's investment strategy, before the formal business of the meeting. The Hon Rupert Carington Chairman Dividend for the year The Directors of the Company have declared the payment of a final dividend, of 0.75p net per share, for the year ended 30 September 2003. The dividend will be payable on 13 February 2004 to shareholders on the register on 16 January 2004. Ex-Dividend Date: 14 January 2004 Transfers must be lodged by: 16 January 2004 Dividend Warrants: Despatched on 12 February 2004 Payment Date: 13 February 2004 Dividend per share: 0.75p The Annual Report and Accounts will be mailed to shareholders at their registered addresses in December 2003 and from the date of release copies of the Annual Report and Accounts will be available to the public at the Company's registered office: 31 Gresham Street, London, EC2V 7QA. Enquiries: Schroder Investment Management Limited John Spedding (0207 658 3206) 11 November 2003 This information is provided by RNS The company news service from the London Stock Exchange

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