Final Results
11 July 2003 - 5:30PM
UK Regulatory
11 July 2003
EDINBURGH VALUE ZEROS PLC
PRELIMINARY RESULTS FOR THE YEAR TO 31 MAY 2003
Edinburgh Value Zeros and its holding company, Edinburgh Income and
Value Trust, managed by Edinburgh Fund Managers, is akin to a split
capital investment trust but with no fixed life for the ordinary shares.
The Group has investment objectives of providing ordinary shareholders
with a high level of income, together with the opportunity for capital
and income growth and for its zero dividend preference shareholders with
a pre-determined capital entitlement in May 2005 with a competitive
yield and capital cover.
For further information, please contact:
David Binnie, Investment Manager, Edinburgh Fund Managers plc
0131 313 1000
Please note that past performance is not necessarily a guide to the
future and that the value of investments and the income from them may
fall as well as rise. Investors may not get back the amount they
originally invested.
EDINBURGH VALUE ZEROS
CHAIRMAN'S STATEMENT
Edinburgh Value Zeros and its holding company Edinburgh Income and Value
Trust were incorporated on 10 March 1999. The group's objectives are to
provide the ordinary shareholders of Edinburgh Income and Value Trust
('EIVT') with a high level of income together with the opportunity for
capital and income growth and holders of the zero dividend preference
('ZDP') shares of Edinburgh Value Zeros with a pre-determined capital
entitlement in 2005.
The final capital entitlement of the ZDP shares of 159.63p on 31 May
2005 represents a redemption yield of 7.9% per annum over the life of
the ZDP shares, based on the placing price of 100p.
As at 31 May 2003, the company had a few small holdings in gilts and a
loan note from EIVT for �15.5m. In addition EIVT has entered into a
Subscription Agreement with the company, whereby EIVT will subscribe for
such number of ordinary shares in the company to enable it to satisfy
the final capital entitlement of the ZDP shares on 31 May 2005. The
performance of the investment portfolio held by EIVT is outlined in its
chairman's statement.
As a result of market movements during the period under review the cover
for the ZDP shares is shown below:
31 May 2003 31 May 2002 % change
Net asset value per ZDP share 135.73p 125.17p +8.4
ZDP share price 141.25p 130.50p +8.2
Group's net assets �44.36m �55.71m -20.4
Final capital entitlement
of ZDP shares �24.77m �24.77m n/a
Cover 1.79 2.25 n/a
David Ritchie
Chairman
EDINBURGH VALUE ZEROS PLC
PROFIT AND LOSS ACCOUNT
(audited)
Year to Year to
31 May 2003 31 May 2002
�000 �000
Investment income 1 1
Administrative expenses (27) (25)
______ ______
Loss on ordinary activities before taxation (26) (24)
Taxation - -
______ ______
Loss on ordinary activities after taxation (26) (24)
Non equity appropriations (1,558) (1,443)
______ ______
Retained loss for the period (1,584) (1,467)
______ ______
Earnings per ordinary share (889.40p) (823.72p)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
(audited)
Year to Year to
31 May 2003 31 May 2002
�000 �000
Unrealised gain on investments 1 -
Retained loss for the year (1,584) (1,467)
______ ______
Total recognised losses (1,583) (1,467)
______ ______
BALANCE SHEET
(audited)
As at As at
31 May2003 31 May 2002
�000 �000
Fixed assets
Investments 19 18
______ ______
Current assets
Debtors - amounts due within one year 21,512 19,871
Cash and short term deposits 1 -
______ ______
21,513 19,871
Creditors: Amounts falling due within one year 93 65
______ ______
Net current assets 21,420 19,806
______ ______
21,439 19,824
______ ______
Capital and reserves
Called up share capital 178 178
Share premium 21,353 19,713
Capital reserve - unrealised (1) (2)
Profit and loss account (91) (65)
______ ______
21,439 19,824
______ ______
Shareholders' funds:
- Equity 164 107
- Non-equity 21,275 19,717
Adjusted net asset value per non-equity share 135.73p 125.17p
CASHFLOW STATEMENT
(audited)
Year to Year to
31 May 2003 31 May 2002
�000 �000
Net cash inflow from ordinary activities 1 -
Capital expenditure and financial investment - -
Financing - -
______ ______
Increase in cash 1 -
______ ______
Notes :
1. There will be no dividend for the year ended 31 May 2003.
2. The profit and loss account, statement of total recognised gains and
losses, balance sheet and cashflow statement set out above do not
represent full accounts in accordance with Section 240 of the Companies
Act 1985. The financial information for the year ended 31 May 2002 has
been extracted from the Annual Report and Accounts of the company which
have been filed with the Registrar of Companies. The auditors' report on
those accounts was unqualified. The statutory accounts for 2003 contain
an unqualified auditors' report and will be delivered to the Registrar
of Companies following the company's Annual General Meeting which will
be held at Donaldson House, 97 Haymarket Terrace, Edinburgh on Tuesday 7
October 2002 at 11.45 am.
3. The accounts are prepared under the same accounting policies used for
the year ended 31 May 2002.
4. The annual report will be posted to shareholders on 24 July 2003 and
copies will be available at the registered office of the company -
Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD.
For Edinburgh Value Zeros plc
Edinburgh Fund Managers plc, SECRETARY
