Interim Results

Witan Inv Tst PLC 27 July 2000 WITAN INVESTMENT TRUST PLC Unaudited Preliminary Results for the Half Year Ended 30 June 2000 Financial Highlights (per ordinary share)* (Audited) Half year Half year Year ended ended ended 30 June 30 June 31 Dec 2000 1999 1999 pence pence pence Net asset value 566.7 478.5 560.7 Earnings 3.85 4.45 7.54 Dividends - Interims and 3.50 3.50 7.60 Final Performance (total return per ordinary share)* 6 months 12 months base 100 base 100 Net asset value (i) 101.69 120.02 Share price (i) 101.27 122.09 Peer group (i) and (ii) 100.97 116.65 Benchmark (iii) 98.71 110.61 (i) Source: AITC (ii) Source: AITC size weighted average net asset value total return for the International : General sector (iii)Comprising the FTSE All-Share Index and the FT/S&P Actuaries World Index ex UK in the proportion 60:40 with net income reinvested. Dividend An interim dividend of 3.50p (1999: 3.50p) per ordinary share will be paid on 8 September 2000 to shareholders registered on 18 August 2000. The ex-dividend date will be 14 August 2000. * Unaudited WITAN INVESTMENT TRUST PLC Unaudited Preliminary Results for the Half Year Ended 30 June 2000 Chairman's Statement In the first six months of the year we have seen corrective action in many markets on the pricing of both the exotic new stocks and the traditional old stocks - and not before time. The Witan portfolio, having some of each, has weathered these adjustments positively with a small rise of 1.69% in our net asset value whereas our benchmark has responded negatively, down 1.29%. In this period it has been better to have been armed with a shotgun than a rifle as spread was all important, in sharp contrast to what was needed in 1999. In both periods the benefits of not being a slave to indices is apparent. Nonetheless we continue to look for ways to reduce stockmarket risk and we have recently applied approximately 1% of our assets to what is loosely labelled 'absolute return funds'. With careful choice and with a good mixture of these funds we believe acceptable returns can be made in falling markets without prejudicing good returns in strong markets. We shall see. At 30 June 2000 Christopher Clarke retired as Managing Director, but remains on the Board. James Robinson, in the same co- ordinating role, becomes our new Manager. This is a logical step in the development of our investment management team structure, which Christopher has done so much to create, as well as a healthy sign to shareholders of the depth of management resource available to Witan at Henderson Investors. It would be appropriate for me to comment more fully on the significant contribution Christopher has made at the time of our Annual Report. WITAN INVESTMENT TRUST PLC Unaudited Preliminary Results for the Half Year Ended 30 June 2000 Statement of Total Return (incorporating the revenue account) for the half year ended 30 June 2000 (Unaudited) (Unaudited and (Audited and Half year Restated*) Restated*) ended Half year Year ended 30 June 2000 ended 31 December 30 June 1999 1999 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from investments - 13,607 13,607 - 199,913 199,913 - 507,558 507,558 Income from fixed asset investments 19,564 - 19,564 22,377 - 22,377 37,255 - 37,255 Other interest receivable and similar income 810 - 810 982 - 982 2,688 2,688 Gross revenue and capital gains 20,374 13,607 33,981 23,359 199,913 223,272 39,943 507,558 547,501 Management fee (2,252) - (2,252)(2,164) - (2,164) (4,370) - (4,370) Other administrative expenses (1,206) - (1,206)(1,907) - (1,097) (1,935) - (1,935) Net return on ordinary activities before interest payable and taxation 16,916 13,607 30,523 20,098 199,913 220,011 33,638 507,558 541,196 Interest payable (2,021) - (2,021) (2,243) - (2,243) (4,219) - (4,219) Net return on ordinary activities before taxation 14,895 13,607 28,502 17,855 199,913 217,768 29,419 507,558 536,977 Taxation on net revenue on ordinary activities (758) - (758) (1,133) - (1,133) (1,147) - (1,147) Net return on ordinary activities after taxation 14,137 13,607 27,744 16,722 199,913 216,635 28,272 507,558 535,830 Dividends - preference shares (42) - (42) (42) - (42) (83) - (83) Net return attributable to ordinary shares 14,095 13,607 27,702 16,680 199,913 216,593 28,189 507,558 535,747 Dividends - ordinary shares Interim payment of 3.50p (1999: 3.50p) (12,703) - (12,703) (13,151) - (13,151) (13,082) - (13,082) Final 1999: 4.10p - - - - - - (15,084) - (15,084) (12,703) - (12,703) (13,151) - (13,151)(28,166) - (28,166) Transfer to reserves 1,392 13,607 14,999 3,529 199,913 203,442 23 507,558 507,581 Return per ordinary share (note 1) 3.85p 3.71p 7.56p 4.45p 53.30p 57.75p 7.54p 135.76p 143.30p The revenue columns of this statement represent the revenue accounts of the Company. *Restated for change in accounting policy, see note 2. WITAN INVESTMENT TRUST PLC Unaudited Preliminary Results for the Half Year Ended 30 June 2000 Balance Sheet as at 30 June 2000 (Unaudited) (Unaudited) (Audited) 31 December 30 June 30 June 1999 2000 1999 £'000 £'000 £'000 Fixed asset investments Listed in United Kingdom 1,100,686 1,038,008 1,196,593 Listed abroad 932,961 756,617 928,713 Unquoted at directors' 29,178 14,173 9,665 valuation --------- ---------- ------------ 2,062,825 1,808,798 2,134,971 --------- ---------- ------------ Current Assets Debtors 20,834 11,188 5,132 Cash at bank and short term 53,873 74,275 9,653 deposits --------- ---------- ------------ 74,707 85,463 14,785 Creditors : amounts falling (25,659) (57,149) (18,217) due within one year --------- ---------- ------------ Net current 49,048 28,314 (3,432) assets/(liabilities) --------- ---------- ------------ Total assets less current 2,111,873 1,837,112 2,131,539 liabilities Creditors: amounts falling (46,000) (46,000) (46,000) due after more than one year Provision for liabilities (25) (192) (74) and charges --------- ---------- ------------ Total net assets 2,065,848 1,790,920 2,085,465 ======== ======== ======== Capital and Reserves Called-up share capital Preference shares 2,555 2,555 2,555 Ordinary shares 91,015 93,438 92,876 Share premium 16,237 16,237 16,237 Other reserves Capital reserve - realised 1,130,292 945,874 1,019,147 Capital reserve - 808,219 710,535 940,373 unrealised Redemption reserve 2,811 388 950 Revenue reserve 14,719 21,893 13,327 --------- ---------- ------------ Shareholders' funds 2,065,848 1,790,920 2,085,465 (including non-equity ======== ======== ======== interests of £2,555,000) Net asset value per 566.7p 478.5p 560.7p ordinary share --------- ---------- ----------- WITAN INVESTMENT TRUST PLC Unaudited Preliminary Results for the Half Year Ended 30 June 2000 Cash Flow Statement for the half year to 30 June 2000 (unaudited) (Audited (Restated*) and Restated*) Half year Half year Year ended ended ended 30 June 30 June 31 December 2000 1999 1999 £'000 £'000 £'000 Net cash inflow from operating 15,076 18,475 32,941 activities Net cash outflow from servicing of (2,064) (2,808) (4,828) finance Net tax recovered 156 509 420 Net cash inflow from financial 80,988 65,323 46,356 investment Equity dividends paid (15,045) (15,199) (28,282) Management of liquid resources (15,000) (21,745) 28,255 ---------- ---------- ----------- Net cash inflow before financing 64,111 44,555 74,862 Net cash outflow from financing (34,616) (40,005) (85,333) ---------- ---------- ----------- Increase/(decrease) in cash 29,495 4,550 (10,471) ---------- ---------- ----------- Reconciliation of operating revenue to net cash inflow from operating activities Net revenue before interest 16,916 20,098 33,638 payable and taxation (Increase)/decrease in accrued (157) (884) 914 income Decrease/(increase) in debtors 259 131 (221) (Decrease)/increase in creditors (491) 962 924 Tax deducted at source (1,427) (1,832) (2,289) Scrip dividends included in (24) - (25) investment income ---------- ---------- ----------- 15,076 18,475 32,941 ---------- ---------- ----------- Reconciliation of net cash flow to movement in net funds/(debt) Increase/(decrease) in cash 29,495 4,550 (10,471) Net repayment of loans - 33,869 69,599 Cash outflow/(inflow) from 15,000 21,745 (28,255) management of liquid resources ---------- ---------- ----------- Change in net funds/(debt) 44,495 60,164 30,873 resulting from cash flows Exchange movements (275) (73) (2,637) ---------- ---------- ----------- Movement in net funds/(debt) in 44,220 60,091 28,236 the year Net debt at beginning of the (36,347) (64,583) (64,583) period ---------- ---------- ----------- Net funds/(debt) at end of the 7,873 (4,492) (36,347) period ---------- ---------- ----------- Represented by: Bank balances and short term 53,873 74,275 9,653 deposits Debt falling due within one year - (32,767) - Debt falling due after more than (46,000) (46,000) (46,000) one year ---------- ---------- ----------- 7,873 (4,492) (36,347) ---------- ---------- ----------- *Restated for change in accounting policy, see note 2. WITAN INVESTMENT TRUST PLC Unaudited Preliminary Results for the Half Year Ended 30 June 2000 Notes 1. Return per Ordinary Share Revenue return per ordinary share is calculated by dividing the net revenue return available for ordinary shareholders of £14,095,000 (half year ended 30 June 1999: £16,680,000 and year ended 31 December 1999: £28,189,000) by the 366,527,642 (half year ended 30 June 1999: 375,052,266 and year ended 31 December 1999: 373,863,778) weighted average number of ordinary shares in issue, as shown above. Capital return per ordinary share is calculated by dividing the net capital return available for ordinary shareholders of £13,607,000 (half year ended 30 June 1999: £199,913,000 and year ended 31 December 1999: £507,558,000) by the weighted average number of ordinary shares in issue as shown above. 2. Change in accounting policy In accordance with Financial Reporting Standard 16, Current Taxation, ('FRS 16') which became effective for accounting periods ending on or after 23 March 2000, franked investment income is now shown net of the related tax credits. The comparative figures for the half year ended 30 June 1999 and the year ended 31 December 1999 have been restated accordingly. Adoption of FRS 16 has no effect on the revenue or capital returns per ordinary share, nor on the net asset value per ordinary share. 3. Share Repurchases During the period the Company made authorised market purchases fo r cancellation of 7,445,000 of its own issued ordinary shares of 25p. Following these purchases for cancellation 364,058,094 ordinary shares of 25p are in issue. 4. Dividend The directors have declared an interim dividend of 3.50p (1999: 3 .50p) per ordinary share payable on 8 September 2000 to shareholders registered on 18 August 2000. The shares will be quoted ex-dividend on 14 August 2000. 5. Year 2000 Henderson plc and its subsidiaries ('Henderson'), which provides investment management, UK custodial, accounting, administrative and company secretarial services to Witan Investment Trust plc, have advised that the corporate action programme initiated by Henderson has been satisfactorily completed and that at the date of this document no material or significant problems affecting the Company have arisen from the Year 2000 date change. Costs relating to this project were borne by Henderson. 6. Comparative Information The figures and financial information for the year ended 31 December 1999 are an extract from the latest published accounts and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 237(2) or 237(3) of the Companies Act 1985. 7. Interim Report The interim report will be sent to shareholders in August 2000 and copies will be available thereafter from the Secretary at the Company's registered office, 3 Finsbury Avenue, London EC2M 2PA. For further information, please contact: James Budden Witan Investment Trust plc Tel: 020 7410 3121 Norman Brown Henderson Investors Tel: 020 7410 3185 Gordon Puckey Quill Communications Tel: 020 7618 8905

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