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Premier Pacific Inc (PPI)

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Friday 14 October, 2005

Premier Pacific Inc

RE: Preliminary Results

Premier Pacific Income Fund PLC
14 October 2005


                                                 COMPANY ANNOUNCEMENT


 For Immediate Release                                                                                    14th October
                                                         2005

                                            Premier Pacific Income Fund plc
                                                    (the 'Company')

                                               Re:  Preliminary Results





The Directors of the Company wish to announce that at the Board Meeting of
Directors, held in Dublin on 13th October, the Directors approved the following:



-           The Annual Report and Accounts for the year ending 31st July 2005



-           The dividend payment for the quarter



-           Redemption on 30th September 2005





Annual Report and Accounts



The audited annual report and accounts were approved by the directors on 13th
October 2005 and will be distributed to shareholders in November.  The Annual
General Meeting has been set for 11:00 on 8th December 2005.  A copy of the
report and accounts in .pdf format will be available shortly from Premier Asset
Management's Website





Dividends



At the Board Meeting of Directors held on 13th October 2005, it was resolved to
pay a quarterly dividend of 0.725 pence per share.  The ex-dividend date will be
26th October 2005 and the payment date will be 21st November 2005.





Redemption on 30th september 2005



On 30th September a total of 25,251,129 shares were tendered for redemption and
10,560,346 shares were redeemed amounting to 25% of the shares in issue at that
date.  Accordingly there are now 31,681,033 shares in issue.  The remaining
tendered shares, 14,790,783, have been carried forward to the next dealing date,
which is 30th December 2005.  In accordance with the prospectus, 7,920,783
shares, representing 25% of the outstanding shares, could be redeemed.  However,
at the Board Meeting held on 13th October 2005, the directors resolved that it
would be in the best interests of all shareholders to allow all the tendered
shares to be redeemed.  Accordingly 14,790,783 shares will be redeemed on 30th
December 2005.





Chairman's Review

For the year ended 31st July 2005





Introduction



The last twelve months have seen excellent returns from many Asia Pacific
markets.  Consequently your Fund has shown a good return in capital terms and
continued to pay quarterly dividends at the level of the final quarter of last
year.





Performance



Over the twelve months to 29th July 2005, the net asset value rose from 48.24
pence per share to 65.45 pence per share.  Dividends amounted to 2.90 pence per
share over the last twelve months.  Consequently shareholders have seen a
capital return of 35.7% and a total return of 41.7%.  Over the same period the
Fund's benchmark index, the MSCI All Country Asia Pacific (Free) ex Japan Index,
in sterling terms has produced a capital return of 39.6% and a total return of
44.1%.





Income



The growth in dividend income from Asian equities remained strong although the
return to sterling based investors was less due to a weaker average exchange
rate for many Asian currencies against sterling over the year.  Income amounted
to £1.681 million compared with £1.724 million last year.  Expenses were higher
at £1.969 million compared with £1.593 million last year.  The costs of the open
ending of the Fund account for much of this increase.  The cost of dividends
amounted to £1.225 million.  After charging 75% of management fees and loan
interest to capital, revenue reserves have fallen slightly to £0.61 million
compared with last year's position of £0.93 million.  However this still
represents more than two quarters of dividends at the current rate.





RESULTS OF EXTRAORDINARY GENERAL MEETING



On 26th July 2005 shareholders voted to open-end the fund with immediate effect
and to alter the investment policy to 100% Asia Pacific ex Japan equities.  As a
consequence shareholders will be able to subscribe and redeem shares on a
quarterly basis at a price based on net asset value after allowing for dealing
costs.  The prospectus governing this change was approved on 23rd September 2005
and the first dealings took place on 30th September 2005.  Twenty five percent
of the shares outstanding at that date were redeemed.  The next dealing date
will be 30th December 2005 when further redemptions will be made.





INVESTMENT AND LOAN POLICY



In anticipation of the change in investment policy and the open ending of the
Fund, the global bond portfolio was reduced to only a couple of attractive
Australian investments in April.  Further, knowing that a number of shareholders
wished to redeem shares and that as a consequence part of our loan would need to
be repaid, we took the opportunity of the cash raised by the bond sales to repay
£6.0 million of loan. This leaves us with gearing of 54.3% at the year-end.
Following the redemptions, the gearing level has risen to 70.3%



Throughout its life the Fund has had gearing in the form of a loan from the Bank
of Scotland.  Initially it was thought that this loan might be exchanged for a
term loan.  However the loan in its current renewable form has served
shareholders well and accordingly it has been decided to continue with the loan
in its current form.





Loan Covenants

The covenant requires shareholders' funds to be in excess of 66.7% of the loan.
At the start of the year shareholders' funds represented 97.0% and at the end of
the year were 184.3%.  As at 30th September 2005 shareholders' funds were 189.6%
of the loan prior to shares being redeemed and 142.2% after the redemption.





Chairman's Review - continued



For the year ended 31st July 2005



Outlook



The Asia Pacific region continues to offer strong economic growth.  Despite high
oil and commodity prices there has been only a modest reduction in this growth
although there has been an increase in inflation with a consequent rise in
interest rates as central banks act to ensure that prices do not rise
excessively.



Equity markets in the region are more expensive than they were twelve months ago
but are still attractive on many valuation criteria.  One of the big questions
that will have to be answered in the next twelve months is whether they can
sustain these higher valuation levels or whether the risks inherent in this
region in political, economic and governance terms will reassert themselves and
reduce the valuations to previous lower levels.



The last twelve months has seen many Asian companies increase their dividends.
Some of this is a reaction to shareholder pressure but much of it is associated
with an increase in market maturity and recognition that efficient use of
capital carries higher valuations.  Many companies are committed to continuing
to increase their dividend payouts.  For a fund that has a dividend policy this
is good news and means that shareholders should continue to receive at least the
level of dividends paid by your Fund in previous quarters.  To this end the Fund
will seek to obtain distributor status each year in the U.K. so that
shareholders can maintain all the tax benefits that the Fund has historically
provided.





BALANCE SHEET

As at 31st July 2005


Assets                                                2005                      2004

                                                      £                         £
Investments at market value (cost:£27,981,151, 2004   34,192,865                39,794,123
£43,248,410)
Cash at bank                                          9,222,368                 1,315,885
Unrealised gain on open forward exchange contract     -                         448,294
Interest and dividends receivable                     93,216                    298,771
Funds due from broker                                 26,992                    -
Total Assets                                          43,535,441                41,857,073

Liabilities
Term Loan                                             15,000,000                21,000,000
Funds due to broker                                   288,960                   -
Distribution payable                                  306,250                   306,250
Interest payable                                      42,251                    56,776
Management fees payable                               33,030                    34,028
Unrealised loss on open forward exchange contracts    6,166                     73,642
Custodian fees payable                                3,417                     3,814
Administration fees payable                           5,433                     5,000
Other accrued expenses payable                        204,544                   -
Total Liabilities                                     15,890,051                21,479,510

Net Assets                                            27,645,390                20,377,563

Net Assets Consist of:
Capital (Par value and paid in surplus)               39,741,379                39,741,379
Capital expenses                                      (9,201,509)               (8,006,256)
Undistributed net investment income                   613,283                   930,460
Undistributed net realised loss from investments and  (9,378,608)               (8,873,682)
currency transactions
Unrealised gain/(loss) from investments and foreign   5,870,845                 (3,414,338)
currency transactions
Total Net Assets                                      27,645,390                20,377,563

Number of Shares in issue                             42,241,379                42,241,379

Net Asset Value per share                             0.6545                    0.4824






PROFIT AND LOSS ACCOUNT

For the year ended 31st July 2005




                                                      2005                      2004

                                                      £                         £
Investment Income
Dividend income                                       891,500                   785,354
Bond income                                           725,863                   958,056
Bank interest earned                                  132,243                   32,938
Non reclaimable withholding tax                       (68,219)                  (52,513)
                                                      1,681,387                 1,723,835
Expenses
Interest paid                                         1,151,856                 1,024,444
Management fees                                       441,814                   433,744
Other expenses                                        283,899                   41,063
Administration fees                                   34,600                    30,846
Custodian fees                                        27,414                    32,678
Directors' fees                                       18,196                    19,872
Audit fees                                            11,038                    10,303
                                                      1,968,817                 1,592,950




Expenses Charged to Capital
Interest paid                                         (863,892)                 (768,333)
Management fees                                       (331,361)                 (325,308)
                                                      773,564                   499,309
Net Investment Income                                 907,823                   1,224,526

Net Realised & Unrealised Gain/(Loss) on Investments
Net realised loss from securities transactions        (1,590,114)               (9,683,606)
Net realised gain from foreign currency transactions  1,085,188                 1,085,985
Net change in unrealised appreciation of investments  9,666,001                 10,444,496
Net change in unrealised depreciation of foreign      (380,818)                 (230,023)
currency
                                                      8,780,257                 2,336,852
Net increase in assets resulting from operations      9,688,080                 3,561,378



STATEMENT OF CHANGES IN NET ASSETS

For the year ended 31st July 2005


                                                      2005                      2004

                                                      £                         £
Operations:
Net investment income                                 907,823                   1,224,526
Net realised loss on investments and currency         (504,926)                 (7,887,621)
transactions
Change in unrealised net appreciation of investment   9,285,183                 10,214,473
and currency transactions
Net increase in net assets resulting from operations  9,688,080                 3,561,378

Capital Share Transactions
Capitalised expenses                                  (1,195,253)               (1,093,641)
Distributions                                         (1,225,000)               (1,193,320)
Net decrease from capital share transactions          (2,420,253)               (2,286,961)

Net Increase in Net Assets                            7,267,827                 1,274,417

Net Assets at the beginning of the period             20,377,563                19,103,146

Net Assets at 31st July 2005                          27,645,390                20,377,563









Enquiries:


Corporate Compliance and Secretarial Services        Alan Aylward
Limited
                                                     Phone: + 353 1 476 8300

RSM Robson Rhodes   LLP                              Louise Butler
                                                     Phone: + 353 1 436 6400















                    This announcement has been issued through the Companies
                            Announcement Service of

                           The Irish Stock Exchange.




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