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Close Fins Eurotech (CFB)

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Monday 08 November, 2004

Close Fins Eurotech

Final Results

Close Finsbury Eurotech Trust PLC
08 November 2004



                                                           For immediate release
                                                                 8 November 2004

                       CLOSE FINSBURY EUROTECH TRUST PLC

             Preliminary Results for the year ended 31 August 2004

Highlights                                     As at           As at   % change
                                      31 August 2004  31 August 2003
                                         (Unaudited)       (Audited)

Total net assets                            £12.189m        £12.538m      -2.8
Net asset value per Ordinary share            35.64p          36.66p      -2.8
Share Price                                   29.25p          28.50p      +2.6
Discount                                       17.9%           22.3%         -
FTSE eTX All Share Index (sterling
adjusted)                                     187.5           191.1       -1.9
FTSE eTX Innovation Index (sterling
adjusted)                                     171.6           161.4       +6.3
Morgan Stanley Capital International          867.1           808.4       +7.3
Pan-Euro Index with net dividends
reinvested (sterling adjusted)

Chairman, Peter Gray, commented:

   • The Board continue to believe that the Company represents an investment
     vehicle with important long term growth potential, for two reasons - the
     attractive investment opportunities that exist in the field of European
     technology and the exceptional quality of the investment team employed to
     take advantage of them.

   • The Investment Adviser believes that the European Technology Sector
     represents an attractive investment now, and a major priority for the
     year ahead will be to expand the Company substantially in size.

   • Michael Bourne, the founder and leading figure in the Reabourne
     team, has demonstrated his personal confidence in the prospects for
     this Company by increasing his holding in the Company in the year to
     date, to bring his total holding up to 1,537,000 Ordinary shares,
     representing 4.49% of the issued share capital.

                               - ENDS -

The following are attached: Chairman's Statement
                            Statement of Total Return
                            Balance Sheet for the Company
                            Cash Flow Statement
                            Notes to the Accounts

For further information please contact:-

Peter Gray     Chairman, Close Finsbury EuroTech Trust PLC        020 7863 6574
Michael Bourne Reabourne Technology Investment Management Limited 020 7422 7801
Alastair Smith Close Finsbury Asset Management Limited            020 7426 6240
Tracey Lago    Close Finsbury Asset Management Limited            020 7426 6219




Chairman's Statement

Performance

The year to 31 August 2004, taken as a whole, can only be described as having
been a period of consolidation, following the sharp recovery of the previous
year. Net assets fell by 2.8%, from 36.66p to 35.64p per share, while the share
price rose by 2.6%, from 28.50p to 29.25p per share. At 31 August 2004, the
latter represented a discount to net assets of 17.9%, as opposed to 22.3% a year
earlier. By comparison, the FTSE eTX All Share index fell by 1.9% over the
period, and the associated Innovation index rose by 6.3%.

Since 31 August 2004 there has been some modest improvement. At 5 November 2004,
the latest practicable date before the publication of this report, net assets
had risen by 12.6% to 40.12p, and the share price had risen by 14.5% to 33.50p,
representing a discount to net assets of 16.5%.

Investment Prospects

The lack of movement in technology share markets generally contrasts with more
positive developments in certain areas of the technology industry itself. These
are documented in greater detail in the Investment Adviser's Review in the
Annual Report. I would particularly draw shareholders' attention to the section
entitled "The Outlook for European Technology - why we think the sector is an
attractive investment now". This highlights the extent to which a number of
emerging technologies, in terms of increased internet usage and broadband
adoption, and associated applications, as well as the general adoption of 3rd
Generation (3G) wireless networks, are now approaching mass market adoption. It
also describes the degree to which many European technology companies have
succeeded in emerging as world leaders in their field, and the existence in
Europe of innovative scientists and entrepreneurs that are likely to generate
the winners of the future. It is for this reason that the focus of your
Company's portfolio is on relatively early stage investment, where the
contribution of our investment advisers, Reabourne Technology Investment
Management, in terms of their ability to access and assess such investment
opportunities, is likely to be most effective in delivering exceptional
financial returns in the longer term.



Activity

One of the reasons for the discrepancy between the relatively dull performance
of technology stock markets and certain more positive underlying industrial
trends is that a significant shift in the composition of the technology investor
base has been taking place, with investors with short term time horizons being
replaced by new investors keen to take advantage of current relatively
attractive valuation levels to build up commitments for the longer term. This
has not only been evident in the market as a whole, but is also reflected in the
composition of your Company's shareholder register, where some 25% of the
Company's capital could probably be described as having changed hands over the
past year or so on this basis. The fact that this has been possible has to a
significant degree been due to an extended effort by Close Brothers, Reabourne
and the Company's brokers, Arbuthnot Securities, to promote the Company, backed
up by advertising, that has at least paved the way for a better understanding of
the Company when confidence returns.

An important development during the year has been a significant change in the
relationship between Reabourne Technology Investment Management and the Close
Brothers Group


Chairman's Statement (continued)

under which the latter have acquired 100% of the equity of Reabourne. This
represents a demonstration of confidence by Close Brothers in Reabourne and a
commitment to mobilise the full resources of the group to build up Reabourne as
a world leader in technology investment. This will have significant consequences
for the prospects for ensuring that your Company fulfils its potential to emerge
as the leading vehicle for achieving exposure to early stage European
technology. Further details of the Reabourne team are set out on pages 38 and 39
of the Annual Report. The team also acts as investment adviser to Finsbury
Technology Trust and Finsbury Life Sciences Investment Trust, as well as
technology investment portfolios for an increasing number of major international
financial institutions. For example, Reabourne have recently been selected by
the Prudential Insurance Company of America to manage a Taiwan registered global
technology fund being formed for distribution in the Asian markets.

Michael Bourne, the founder and leading figure in the Reabourne team, has also
demonstrated his personal confidence in the prospects for this Company by
increasing his holding in the Company in the year to date, either personally or
for his family, to bring his total holding up to 1,537,000 Ordinary shares,
representing 4.49% of the issued share capital.



Future of the Company

The Board continue to believe that the Company represents an investment vehicle
with important long term growth potential, for two reasons - the attractive
investment opportunities that exist in the field of European technology and the
exceptional quality of the investment team employed to take advantage of them.
However, as noted last year, the chief obstacle to the Company fulfilling its
potential lies in its relatively small size. This discourages support from large
scale investors, who should otherwise find it attractive, while the closed-end
capital structure of the Company, which is dictated by the illiquidity of its
underlying investments, can lead to its shares trading at a significant discount
to asset value, as is currently the case. For all these reasons it has so far
proved difficult to achieve the Board's objective of expanding the Company
substantially in size. Nevertheless, important lessons have been learned during
the year and the Board remain confident that significant progress toward
achieving this objective can be made in the year ahead.

Throughout the Company's life the main focus of promotional and marketing
efforts has been on the UK retail market. Unfortunately technology investment
prospects are not an easy subject for retail investors, or their normal
advisers, to assess with confidence. As a result, it tends only to be possible
to raise significant new commitments from such sources when the concept is in
fashion, even though underlying valuations may then be excessive. And it tends
to be difficult to raise significant new commitments when the concept is out of
fashion, even though underlying valuations may be attractive, as your Board and
their advisers believe them currently to be.

It has thus become clear that any marketing programme designed to raise
substantial new capital in current circumstances needs primarily to be directed
at professional investors in technology, whether institutions with a degree of
in-house expertise or high net worth individuals active in the industry. In view
of this Close Brothers have taken the important decision to recruit a specialist
technology marketing director, and other plans are in hand to mobilise potential
investors from within the technology industry itself, both in the UK and
overseas. This does not imply that the Company is not a suitable investment for
the retail


Chairman's Statement (continued)

market - in many ways it is an ideal investment for the retail investor to hold 
on a long term basis. But so far as raising substantial new capital for
investment at the right time is concerned, this is likely to depend largely upon
being able to tap investors with the specialist knowledge necessary for this   
purpose.

Last year Shareholders voted by a substantial margin to continue the life of the
Company and the Board undertook to give shareholders an opportunity to
re-consider the future of the Company this year if it had not been expanded
substantially in size. As it has not so far proved possible to expand the
Company, a further resolution to continue the life of the Company will be tabled
at the forthcoming Annual General Meeting.



Recommendation

The Board strongly recommend shareholders to vote in favour of the resolution to
continue the life of the Company at the AGM on 16 December 2004. Each of the
Directors, together with Michael Bourne and Jeremy Gleeson of Reabourne, have
undertaken to vote their own shareholdings in favour of this resolution. Any
shareholder unable to attend the AGM in person is urged to ensure that proxy
forms reflecting their intentions are returned well in advance of the AGM.

Peter Gray
Chairman
8 November 2004




Statement of Total Return
incorporating the revenue account for the year to 31 August 2004

                                              (Unaudited)                     (Audited)
                                              Year Ended 31                 Year Ended 31
                                                   August                        August
                             Revenue   Capital      Total   Revenue   Capital     Total
                                2004      2004       2004      2003      2003      2003
                               £'000     £'000      £'000     £'000     £'000     £'000

Gains on investments               -       275       275         -     4,109     4,109
Exchange losses on
currency balances                  -        (9)       (9)        -       (18)      (18)
Income                            58         -        58        75         -        75
Investment management fee       (206)        -      (206)     (106)        -      (106)
Other expenses                  (458)        -      (458)     (244)        -      (244)
                               -------    ------    ------    ------   -------   -------
Net (loss)/return before 
finance costs and taxation      (606)      266      (340)     (275)    4,091     3,816

Interest payable and
similar charges                   (5)        -        (5)       (1)        -        (1)
                               -------    ------    ------    ------   -------   -------
(Loss)/return on ordinary
activities before taxation      (611)      266      (345)     (276)    4,091     3,815

Taxation on ordinary 
activities                        (4)        -        (4)       (3)        -        (3)
                               -------    ------    ------    ------   -------   -------
(Loss)/return on ordinary
activities after taxation       (615)      266      (349)     (279)    4,091     3,812
Dividends on Ordinary shares       -         -         -         -         -         -

                               -------    ------    ------    ------   -------   -------
Transferred (from)/to
reserves                        (615)      266      (349)     (279)    4,091     3,812
                               -------    ------    ------    ------   -------   -------

(Loss)/return per Ordinary
share                          (1.80)p    0.78p    (1.02)p   (0.82)p   11.96p    11.14p
                               -------    ------    ------    ------   -------   -------

The revenue column of this statement is the profit and loss account of the 
Company.



Balance Sheet
as at 31 August 2004

                                                  (Unaudited)        (Audited)
                                                    31 August        31 August
                                                         2004             2003
                                                        £'000            £'000
                                                      ---------        ---------

Fixed asset investments                                12,242           12,547
                                                      ---------        ---------

Current assets
Debtors                                                    48              290
Cash at bank                                               39               14
                                                      ---------        ---------
                                                           87              304
Creditors
Amounts falling due within one year                      (140)            (313)
                                                      ---------        ---------

Net current liabilities                                   (53)              (9)
                                                      ---------        ---------
Net assets                                             12,189           12,538
                                                      ---------        ---------

Capital and reserves
Called up share capital                                 3,420            3,420
Share premium account                                  29,976           29,976
Capital reserve - realised                            (17,771)         (18,579)
Capital reserve - unrealised                           (1,960)          (1,418)
Revenue reserve                                        (1,476)            (861)
                                                      ---------        ---------
Total equity shareholders' funds                       12,189           12,538
                                                      ---------        ---------

Net asset value per Ordinary share                      35.64p           36.66p
                                                      ---------        ---------



Cash Flow Statement
for the year to 31 August 2004

                                                   (Unaudited)       (Audited)
                                                    Year Ended      Year Ended
                                                     31 August       31 August
                                                          2004            2003
                                                         £'000           £'000
                                                      ----------     -----------

Net cash outflow from operating activities                (658)           (224)

Servicing of finance
Interest paid                                               (5)             (1)

Taxation
Tax recovered                                                -               1

Financial investment
Purchases of investments                                (7,700)         (5,361)
Sales of investments                                     8,397           5,517
                                                      ----------     -----------

Net cash inflow from financial investment                  697             156
                                                      ----------     -----------
Increase/(decrease) in cash for the year                    34             (68)
                                                      ----------     -----------



Notes to the Accounts

1.      Revenue Account

The revenue column of the Statement of Total Return represents the profit and
loss account of the Company.

2.      Income

Income for the year was derived from the following sources:


Income from investments                                2004               2003
                                                      £'000              £'000
Franked dividends                                         9                 12
Overseas dividends                                       39                 44
Interest income on debt securities                        1                 14
                                                 ------------      -------------
                                                         49                 70
                                                 ------------      -------------
Other income                                             
Bank interest income                                      3                  5
Underwriting commission                                   6                  -
                                                 ------------      -------------
                                                          9                  5
                                                 ------------      -------------
Total income                                             58                 75
                                                 ------------      -------------

Total income comprises:
Dividends                                                48                 56
Interest from bank deposits                               3                  5
Interest from debt securities                             1                 14
Underwriting commission                                   6                  -
                                                 ------------      -------------
                                                         58                 75
                                                 ------------      -------------

3.      Investment Management and Performance Fees


                                                   2004                    2003
                                                  £'000                   £'000
Investment Management fee                           178                      92
Performance fee                                       -                       -
Irrecoverable VAT thereon                            28                      14
                                            ------------          --------------
                                                    206                     106
                                            ------------          --------------





Notes to the Accounts (continued)

4.      (Loss)/return per Ordinary share

Revenue Loss

Revenue loss per Ordinary share is based on the revenue losses attributable to
equity shareholders of £615,000 (2003: £279,000 loss).

Capital return - per Ordinary share

Capital return per Ordinary share is based on the capital returns attributable
to equity shareholders of £266,000 (2003: £4,091,000). Both the revenue loss and
the capital return are based on the number of Ordinary shares in issue
throughout the year 34,200,875 (2003: 34,200,875) .

5.      Net Asset Value per Ordinary share

The net asset value per Ordinary share is based on the assets attributable to
equity shareholders of £12,189,000 (2003: £12,538,000) and on the number of
Ordinary shares in issue at the year end of 34,200,875 (2003: 34,200,875).

6.      Comparative Information

The figures and the financial information for the year ended 31 August 2004 are
an extract from the latest published accounts and do not constitute statutory
accounts for that year as defined by Section 240 of the Companies Act 1985.

Those accounts have been delivered to the Registrar of Companies and included in
the report of the auditors which was unqualified and did not contain a statement
under either Section 237 (2) and 237 (3) of the Companies Act 1985. The annual
report and accounts for the year ended 31 August 2004 will be sent to
shareholders in due course.





Close Finsbury Asset Management Limited
Company Secretary

8 November 2004



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