Interim Results
17 December 2003 - 1:01AM
UK Regulatory
RNS Number:3206T
Private Investors Capital Trust PLC
16 December 2003
PRIVATE INVESTORS CAPITAL TRUST PLC
Preliminary Announcement of the Interim Results (Unaudited)
For the six months to 30th November 2003
The Board of Private Investors Capital Trust plc (PICT) is pleased to announce
the results for the six months to 30th November 2003. The formal results which
follow at the end of this Announcement are presented in a format which
summarises the information which will be given in the forthcoming Interim
Report.
CHAIRMAN'S REVIEW
For the six months to 30th November 2003
The share price of Private Investors Capital Trust has risen by 10.3% over the
last six months, reflecting better global stockmarkets. The North American
economy has recovered, companies have started to report improving profits, and
most importantly investor confidence has returned. Indeed the 8% rate of GDP
growth reported for the United States in the third quarter of 2003 is a level
more typical of the Asian tiger economies. The UK, continental Europe and Japan
are moving forward in the wake of US growth. Internationally company managements
who reported a stabilisation in their businesses earlier in the year have become
cautiously optimistic.
This initial stage of the stockmarket recovery has been led by those companies
most damaged by recession, typically loss making cyclical businesses such as
steel and the commodity end of the technology industry. PICT's policy of long
term investment in good quality growth businesses means that these recovery
stocks are not in your portfolio; in spite of this the investments made
reasonable progress. However, there was one significant underperformer in the
portfolio, Goshawk. This specialist insurance company with a record of very good
performance was hit by the disclosure of inadequate underwriting reserves. The
resulting fall in the share price of this large holding partly explains why the
Net Asset Value underperformed the FTSE All-Share Index, but was to some extent
offset by strong returns from overseas investments.
Net Asset Value and Discount
The Net Asset Value increased by 6.4% during the six months since May which
compares with an increase of 9.0% in the FTSE All-Share Index and a rise of 9.1%
in the FTSE World (ex UK) Index. The discount at which the share price trades to
the Net Asset Value has been reduced over the interim period from 21% to below
18%. Your Board and management continue to work to reduce the discount. For
example, a low cost PICT Savings Scheme and ISA have been launched and promoted
to a targeted audience.
Borrowings
At the end of November the Trust had short term borrowings of #977,628
representing 4.6% of gross assets. These borrowings were offset by cash held in
Sterling. For the six months under review the loan was drawn in US Dollars and
Japanese Yen in approximately equal proportions. The net impact of the
fluctuations in exchange rates on the capital value of the loan outstanding was
not significant The loan has been rolled forward into Dollars, partly as a hedge
against the portfolio's significant exposure to that currency through owning
quality American businesses.
PRIVATE INVESTORS CAPITAL TRUST PLC
Preliminary Announcement of the Interim Results (Unaudited)
For the six months to 30th November 2003
Dividend
An interim dividend of 2.7p net has been declared and will be paid on 21st
January 2004 to shareholders registered on 30th December 2003. This increase of
3.8% on last year's interim dividend of 2.6p compares favourably with the 2.5%
annualised rate of inflation.
Outlook
As we look forward to 2004 the investment outlook appears more promising than
for many years. There is growth in the global economy spearheaded by the United
States and Asia, where we continue to find attractive growth companies. This is
feeding through to sales growth, and even more importantly to increased profits
and dividends for our investments. The current environment of growth, while
interest rates rise only slowly, should allow these higher returns to be
reflected in better share prices.
30th 30th 31st
Summary of Performance November November May
2003 2002 2003
Net asset value per share 318.6p 302.2p 299.4p
(fully-diluted)
Dividend per share (net) 2.7p 2.6p 5.3p
(interim) (interim) (total)
Share price 262.0p 233.0p 237.5p
Discount 18% 23% 21%
Gross Assets1 #22.3m #20.2m #21.0m
1 Total assets less current liabilities excluding overseas currency loans.
PRIVATE INVESTORS CAPITAL TRUST PLC
Preliminary Announcement of the Interim Results (Unaudited)
For the six months to 30th November 2003
STATEMENT OF TOTAL RETURN (Incorporating the Income Account)
INCOME RETURN Six months to Six months to Year to
30/11/03 30/11/02 31/05/03
#000 #000 #000
Income
Dividends from UK 142 122 289
companies
Dividends from overseas 100 79 194
companies
Interest on deposits 18 21 40
--------- --------- ---------
260 222 523
Expenses
Investment management (20) (19) (42)
fee
Other administrative (76) (59) (102)
expenses --------- --------- ---------
Income before interest 164 144 379
payable and tax
Interest payable (14) (13) (27)
--------- --------- ---------
Income on ordinary 150 131 352
activities before tax
Tax (7) (9) (18)
--------- --------- ---------
Income attributable to 143 122 334
shareholders
Dividends* (149) (144) (293)
--------- --------- ---------
(Deficit)/surplus for the (6) (22) 41
period --------- --------- ---------
INCOME RETURN PER SHARE - 2.58p 2.21p 6.04p
Basic --------- --------- ---------
- Fully-diluted 2.28p 1.97p 5.29P
--------- --------- ---------
*Total dividend per share of 2.7p for the period (2.6p for the six months to
30th November 2002 and 5.3p for the year to 31st May 2003).
CAPITAL RETURN Six months to Six months to Year to
30/11/03 30/11/02 31/05/03
#000 #000 #000
Capital profits/(losses)
Realised (losses) on (453) (1,321) (919)
investments
Realised gains on currency - 50 51
loans
Unrealised gains/losses on 1,856 (4,171) (4742)
investments
Unrealised gains/(losses) on 1 - 18
currency loans --------- --------- ---------
1,404 (5,442) (5592)
Interest payable (43) (40) (81)
Investment management fee (71) (68) (126)
--------- --------- ---------
Capital gains/(losses) 1,290 (5,550) (5799)
attributable to --------- --------- ---------
shareholders
CAPITAL RETURN PER SHARE - 23.32p (100.33)p (104.83)p
Basic --------- --------- ---------
- Fully-diluted 19.70p (82.40)p (85.68)p
--------- --------- ---------
TOTAL RETURN Six months to Six months to Year to
30/11/03 30/11/02 31/05/03
#000 #000 #000
Income attributable to 143 122 334
shareholders
Capital gains/(losses) 1,290 (5,550) (5,799)
attributable to --------- --------- ---------
shareholders
Total return attributable to 1,433 (5,428) (5,465)
shareholders --------- --------- ---------
TOTAL RETURN PER SHARE - 25.90p (98.12)p (98.79)p
Basic --------- --------- ---------
- Fully-diluted 21.98p (80.43)p (80.39)p
--------- --------- ---------
PRIVATE INVESTORS CAPITAL TRUST PLC
Preliminary Announcement of the Interim Results (Unaudited)
For the six months to 30th November 2003
BALANCE SHEET
At 30/11/03 At 30/11/02 At 31/05/03
#000 #000 #000
Investments
Equities
UK 9,894 9,447 9,575
USA 3,460 3,775 3,215
Japan 1,052 1,012 860
Far East (ex UK) 2,889 2,511 2,430
Continental Europe 3,141 2,341 2,394
Emerging Markets 1,054 1,101 1,275
--------- --------- ---------
21,490 20,187 19,749
--------- --------- ---------
Current Assets
Debtors 302 33 64
Cash and Deposits 1,062 264 1,471
--------- --------- ---------
1,364 297 1,535
--------- --------- ---------
Current Liabilities (due
within one year)
Creditors (389) (100) (103)
Overseas currency loan (978) - (978)
Dividend payable (149) (144) (149)
--------- --------- ---------
(1,516) (244) (1,230)
--------- --------- ---------
Net current (liabilities)/ (152) 53 305
assets --------- --------- ---------
Total Assets less Current 21,338 20,240 20,054
Liabilities
Less:
Creditors (due after one year)
3.25% Convertible Bonds 2009 (3,115) (3,115) (3,115)
--------- --------- ---------
Total Net Assets 18,223 17,125 16,939
--------- --------- ---------
represented by:
Capital and Reserves
Ordinary share capital 5,532 5,532 5,532
Share premium account 6,694 6,694 6,694
Capital Redemption Reserve 105 105 105
Capital Reserve-realised 2,680 2,943 3,246
Capital Reserve-unrealised 2,875 1,570 1,019
Revenue Reserve 337 281 343
--------- --------- ---------
Equity Shareholders' funds 18,223 17,125 16,939
--------- --------- ---------
Net asset value per share 329.43p 309.60p 306.23p
(basic)
Net asset value per share 318.55p 302.18p 299.40p
(diluted-FRS14)
PRIVATE INVESTORS CAPITAL TRUST PLC
Preliminary Announcement of the Interim Results (Unaudited)
For the six months to 30th November 2003
CASH FLOW STATEMENT
Six months to Six months to Year to
30/11/03 30/11/02 31/05/03
#000 #000 #000
Operating activities
Dividends and interest 259 233 480
received from investments
Interest received 19 21 33
--------- --------- ---------
278 254 513
--------- --------- ---------
Investment management fee (89) (97) (174)
Directors' fees paid (21) (21) (42)
Other cash payments (69) (39) (67)
--------- --------- ---------
Net cash inflow from 99 97 230
operating activities --------- --------- ---------
Returns on investments and
servicing
of finance
Interest paid (58) (54) (103)
--------- --------- ---------
Net cash outflow from returns
on investments
and servicing of finance (58) (54) (103)
--------- --------- ---------
41 43 127
Taxation
Tax (paid)/recovered - - -
--------- --------- ---------
41 43 127
Capital expenditure and
financial investment
Purchases of investments (2,336) (1,463) (2,061)
Sales of investments 2,035 1,955 2,824
--------- --------- ---------
Net cash (outflow)/inflow
from capital expenditure
and financial investment (301) 492 763
--------- --------- ---------
Net cash (outflow)/inflow (260) 535 890
before equity dividends
Equity dividends paid (149) (144) (288)
--------- --------- ---------
Net cash (outflow)/inflow (409) 391 602
before financing --------- --------- ---------
Financing
Overseas currency loan - (911) (912)
repaid
Overseas currency loan - - 997
received --------- --------- ---------
Net cash (outflow)/inflow - (911) 85
from financing --------- --------- ---------
Net cash (outflow)/inflow (409) (520) 687
--------- --------- ---------
(Decrease)/increase in cash (409) (520) 687
--------- --------- ---------
Notes
1. The financial information contained within this Preliminary Announcement
does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985. The results for the year ended 31st May 2003 are an
abridged version of the statutory accounts for those years, which received
unqualified audit reports and did not contain statements under sections 237
(2) or (3) of the Companies Act 1985. Statutory accounts for 2003 have been
filed with the registrar of Companies.
2. The Income Return Statement is the Income Account of the Company.
3. The accounting policies applied in preparing these accounts are consistent
with those applied in the latest published annual accounts.
4. The terms of the Interim Report and the Preliminary Announcement were
approved by the Board on 16th December 2003.
Enquiries: Frances Mullan/Ivan Blair Tel: 0131 225 8484
Adam & Company Investment Management Limited
16th December 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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