RNS Number:0879T
Blue Chip Value & Income Fund Ld
10 December 2003
BLUE CHIP VALUE AND INCOME FUND LIMITED
UNAUDITED RESULTS FOR THE PERIOD ENDED 31 OCTOBER 2003
CHAIRMAN'S STATEMENT
I am pleased to report that the Company's fortunes have improved since my last statement in July 2003, contained in
the Annual Reports and Accounts.
Positive returns to Shareholders have been achieved in the six months ended 31 October 2003 with the Net Asset Value
("NAV") per Ordinary Share increasing by 105.7 per cent. on a mid-market basis, from 7.1p to 14.6p, as result of the
positive effects of gearing in a rising market, coupled with good stock picking by the Investment Adviser. During
the same period, the FTSE 100 Index and FTSE 250 Index rose 9.2 per cent. and 30.4 per cent. respectively, while the
Datastream UK Highly Geared IT NAV Index fell by 13.7 per cent.. As at 30 November 2003, (the latest available date
on which the information is available), the NAV per Ordinary Share stood at 13.3p. The NAV per Zero Dividend
Preference Share increased from 117.4p on 30 April 2003 to 122.5p as at 31 October 2003.
Over the same six month period, the Ordinary Share price rose from 8.0p to 11.8p, an increase of over 45 per cent.,
and, as at the 30 November stood at 10.5p. Likewise, the Zero Dividend Preference Share price rose from 61.5p to
92.5p, a rise of 50.4 per cent.
During the period, the Company has announced and paid a first interim dividend of 0.50p per Ordinary Share. In
addition, on the 14 November, a second interim dividend of 0.50p per Ordinary Share was declared and is payable to
Shareholders on 9 January 2004.
As documented in the Chairman's statement at the year end the high income portfolio only constituted 10.3% of assets.
However, as at 31 October 2003 this had increased to 17.67% of the total portfolio. This is still not in line with
the original investment policy of 25% of the portfolio being invested in the high income portfolio, but has been
forced on the Group by the collapse in the split capital investment trust sector. The realignment of the balance
between the high income portfolio and the large capitalised United Kingdom companies portfolio is dependent on market
conditions.
The level of borrowings at #28.5 million remained constant throughout the period and the Company has remained
compliant with its renegotiated banking covenants, with approximately #10million lodged under the cash offset
arrangement. While the interest received in respect of this deposit has been less than the cost of borrowing an
equivalent amount under the bank loan facility, the breakage cost of the associated swap arrangement has reduced very
substantially in recent months and, should the Company decide to repay any of the loan, the current swap breakage
costs would be significantly less than those prevailing at 30 April 2003.
The original offset arrangement expired on 30 November, and, the Company is currently discussing its options with
Bank of Scotland with a view to maintaining flexibility in the capital structure of the Company. A further
announcement will be made in due course. I am pleased to be able to advise Shareholders that with effect from 1
December 2003 the Manager has agreed not to charge management fees on any cash held in an offset account.
During August 2003, a circular was posted to Shareholders seeking authority, inter alia, to allow the Company and the
Subsidiary to buy back for cancellation up to 14.99 per cent. of the issued Ordinary Shares and 30 per cent of the
issued Zero Dividend Preference Shares, respectively. These proposals were approved at a series of Shareholder
meetings held on 22 September and the appropriate Court approvals were received on 9 October. These buyback powers
are therefore now available to the Board should it judge that circumstances exist where they can be exercised for the
benefit of Shareholders.
The period under review has been a better one for Shareholders with calmer conditions prevailing in UK Stockmarkets.
However, the Board and the Investment Adviser remain alert to the possibility of further setbacks in markets and
intend to take a cautious stance with regard to the investment in equities of any of the current cash balances until
the outlook becomes clearer.
D C Norman
10 December 2003
INVESTMENT ADVISER'S REPORT
Equity markets have continued to rally from their March lows with the FTSE 100 Index rising by 9.2 per cent. in the
period 1 May 2003 to 31 October 2003. The equity market rally was heavily skewed towards cyclical recovery plays,
with particularly strong performance from mid cap engineering stocks, poor quality value stocks which were
experiencing financial stress, and technology stocks. The FTSE 250 Index did, as a result, significantly outperform
the FTSE 100 Index with a rise of 30.4 per cent. during the period in question. By contrast, the Datastream UK
Highly Geared Investment Trust NAV Index continued to fall, despite calm returning to the market and the very strong
share price performance of some individual funds.
The portfolio performed reasonably well during this period despite the fact that we remained relatively defensively
positioned and did not typically chase gains in poor quality recovery plays. The Net Asset Value ("NAV") of the
Company continued to be supported by the positive influence of gearing in rising markets and rose by 105.7per cent.
The rise in equity markets has been very sharp from very depressed levels but has been supported by more pronounced
indications of a global recovery led by the US. US GDP growth accelerated to 7.2 per cent. on an annualised basis in
the third quarter, with improving manufacturing and employment levels. Although medium term growth may be dampened
by the high level of US indebtedness, trade imbalances and a growing budget deficit, short term growth prospects look
reasonably good.
Strong US growth is being supported by a rapidly expanding China (if you can believe the figures), a strengthening
India and Asian region, encouraging signs of life in Japan, and whilst there has yet to be sufficient evidence of
rising output data in the Eurozone, leading indicators are more positive. The world economy is recovering and the
global economic upturn could be stronger than previously anticipated despite the fragility in some areas. This is
positive for the UK economy.
In the UK, the Monetary Policy Committee has increased interest rates for the first time in almost four years with
the intention of moderating buoyant consumer demand and house price inflation. Major revisions to the UK national
accounts show better than expected growth in the first half of 2003 and satisfactory growth in the third quarter.
Corporate profits should continue to improve.
The problem with all this good news is that high expectations are built into equity prices, particularly in areas
such as technology, which makes some areas vulnerable to a setback. For the main equity indices to move higher, in a
sustainable way, it will require a further broadening out of the current rally to include sectors and stocks left
behind, and there is evidence that this rotation is underway. Whilst we are happy to take advantage of the current
uptrend in equity markets we feel that the easy money has been made and that we need to remain aware of the economic
imbalances which persist and the risks associated with these. Although we may see further relief rallies in bond
markets we, view the long term trend as downward.
Volatility has declined as investors have regained their confidence and so we have greatly reduced our option writing
activity as we no longer feel that we are getting 'paid' well enough to write calls. We will continue to look for
opportunities in individual stocks and may switch our strategy to writing put options against cash held in reserve.
We have yet to write a put option but will keep this strategy under consideration. We are generally reluctant to
abandon option writing which has added significant value over the life of the Company. Writing put options against
cash held in reserve is also consistent with our view that, whilst we believe that equity markets will move higher,
they are increasingly vulnerable to some form of consolidation.
J Davey
Collins Stewart Asset Managers
10 December 2003
The financial information set out in this announcement does not constitute the company's statutory accounts for the
period ended 31 October 2003. The accounts for the period ended 31 October 2003 are unaudited and will be
finalised on the basis of the financial information presented by the Directors in this preliminary announcement and
will be delivered to the UK Listing Authority following approval.
CONSOLIDATED STATEMENT OF TOTAL RETURN
(incorporating the revenue account)
for the six months ended 31 October 2003 (unaudited)
Six months Year ended
ended 31 30 April
Six months ended 31 October 2003 October 2002 2003
(unaudited) (unaudited) (audited)
Revenue Capital Total Total Total
Note #'000 #'000 #'000 #'000 #'000
Gains/(Losses) on investments 9 - 6,383 6,383 (19,129) (23,933)
Income 2 1,433 - 1,433 2,390 3,612
Management fees 3 (58) (170) (228) (269) (476)
Other expenses 4 (197) - (197) (159) (322)
Net return/(deficit) on ordinary
activities before exceptional items
and finance costs 1,178 6,213 7,391 (17,167) (21,119)
Movement in the provision for swap
break costs 10 - 199 199 - (320)
Net return/(deficit) on ordinary
activities before finance costs 1,178 6,412 7,590 (17,167) (21,439)
Interest payable and similar charges (242) (726) (968) (964) (1,920)
Net return/(deficit) on ordinary
activities for the period/year 936 5,686 6,622 (18,131) (23,359)
Appropriations in respect of
non-equity interests
Compounding entitlement of ZDP Shares 6 - (507) (507) (466) (945)
Return/(deficit) attributable to
equity shareholders 936 5,179 6,115 (18,597) (24,304)
Dividends declared in respect of
equity shares 7 (339) - (339) (339) (1,358)
Transfer to/(from) reserves 597 5,179 5,776 (18,936) (25,662)
Return/(deficit) per Ordinary Share 8 1.38p 7.62p 9.00p (27.40)p (35.80)p
Return per ZDP Share 8 - 5.07p 5.07p 4.66p 9.45p
CONSOLIDATED BALANCE SHEET
as at 31 October 2003 (unaudited)
31 October 2003 31 October 2002 30 April 2003
(unaudited) (unaudited) (audited)
Note #'000 #'000 #'000
Fixed assets
Listed investments at market value 9 39,889 48,998 34,199
Current assets
Debtors 1,004 1,214 1,008
Cash at bank 643 2,864 705
Cash in loan offset account 10,275 - 10,095
11,922 4,078 11,808
Creditors - amounts falling due within one year (950) (2,486) (1,295)
Net current assets 10,972 1,592 10,513
Total assets less current liabilities 50,861 50,590 44,712
Creditors - amounts falling due after more than one year
Long term bank loan 10 (28,500) (28,500) (28,500)
ZDP Shares issued by the Subsidiary 6 (12,247) (11,262) (11,740)
(40,747) (39,762) (40,240)
Provision for swap break costs 10 (121) - (320)
Net asset value 9,993 10,828 4,152
Share capital and reserves
Share capital 11 8,550 8,485 8,485
Share premium 12 24,939 29,889 29,939
Revenue reserve 12 2,082 1,738 1,485
Special reserves 12 5,000 - -
Capital reserve 12 (30,578) (29,284) (35,757)
Total equity shareholders' funds 14 9,993 10,828 4,152
Net asset value per Ordinary Share 13 14.61p 15.95p 6.12p
Net asset value per ZDP Share 8 122.47p 112.62p 117.40p
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 31 October 2003 (unaudited)
Six months Six months Year
ended 31 ended 31 ended 30
October 2003 October 2002 April 2003
(unaudited) (unaudited) (audited)
Note #'000 #'000 #'000
Net cash inflow from operating activities 15 1,160 2,162 3,001
Returns on investments and servicing of finance
Interest paid (978) (969) (1,926)
Dividends paid (629) (1,298) (1,928)
Net cash outflow from returns on investments and servicing of (1,607) (2,267) (3,854)
finance
Capital expenditure and financial investment
Purchase of investments (33,475) (37,968) (58,031)
Sale of investments 34,040 40,495 69,147
Net cash inflow from capital expenditure and financial investment 565 2,527 11,116
Net cash inflow before financing 118 2,422 10,263
Financing
Issue of shares - - -
Repayment of bank loan - - -
Payment to loan offset account - - (10,000)
Net cash inflow/(outflow) from financing - - (10,000)
Increase in cash in the period/year 16 118 2,422 263
NOTES TO THE ACCOUNTS
for the six months ended 31 October 2003 (unaudited)
1. Accounting policies
A summary of the principal accounting policies, all of which have been applied consistently throughout the period,
is set out below:
a) Accounting convention
The interim results have been prepared under the historical cost convention as modified by the revaluation of
investments. The financial statements have been prepared in accordance with applicable United Kingdom accounting
standards and with the Statement of Recommended Practice ("SORP") 'Financial Statements of Investment Trust
Companies' as it is considered best practice to do so, although the Company, as an overseas company, does not meet
all criteria set out in the SORP.
b) Basis of consolidation
The consolidated statement of total return and consolidated balance sheet include the financial statements of the
Company and its Subsidiary undertaking for the period.
c) Investments held as fixed assets
Quoted investments are valued at the mid-market price on the relevant Stock Exchange at the balance sheet date.
Realised surpluses or deficits on the disposal of investments, impairments in the value of investments and
unrealised surpluses or deficits on the revaluation of investments are taken to the consolidated statement of total
return as capital.
Where covered call options have been written by the Company, investments are carried in the accounts at the lower
of market value and the strike price of the options.
d) Investment income
Fixed returns on debt securities are recognised on a time apportionment basis so as to reflect the effective yield
on the debt security. Interest on overseas debt securities is shown gross of any overseas withholding tax.
Interest on United Kingdom securities is shown net of the tax credit in accordance with Financial Reporting
Standard 16 "Current Taxation". The debt securities are accounted for on a clean basis. Dividends receivable on
equity shares are taken into account on the ex-dividend date. Bank interest is accounted for on an accruals basis.
The premium on call options written by the Company is recognised immediately in the capital reserve.
e) ZDP Shares issued by the Subsidiary
The ZDP Shares issued by the Subsidiary are accounted for as a liability of the Group in accordance with the
provisions of Financial Reporting Standard 4 "Capital Instruments" ("FRS 4") as this reflects the substance of the
arrangement.
The finance costs of the ZDP Shares are accounted for on an accruals basis, and in accordance with the provisions
of FRS 4. The Directors have allocated 100% of the finance costs relating to ZDP Shares to capital. Accordingly
the Group has provided for the repayment entitlements attached to these shares, issued by the Subsidiary, which
accrue on a daily basis to 30 April 2007.
f) Expenses
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue account except as
follows:
* expenses which are incidental to the acquisition or disposal of an investment are treated as part of the cost
or proceeds of the investment;
* 75% of the Group's management fee and financing costs are charged to its capital account; and
* 100% of any performance fee is charged to the capital account.
g) Capital reserve
The following are accounted for in the capital reserve:
realised gains and losses on the realisation of investments;
(i) unrealised gains and losses on investments;
(ii) expenses charged to the capital reserve in accordance with the above accounting policies; and
(iv) premiums on covered call options.
2. Income
Six months ended Six months ended Year ended 30
31 October 2003 31 October 2002 April 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Dividend income 1,233 2,278 3,273
Bond interest 1 74 177
Bank interest 199 38 162
1,433 2,390 3,612
3. Management fees
The Manager of the Company is entitled under the Management Agreement with the Company to receive a fee at the
annual rate of 1% of the Total Assets of the Company. Where any investments comprised in the assets of the Company
are in funds managed or advised by the Manager or Investment Adviser or an affiliate of either of them, the value
of such investments is deducted from the Total Assets for the purpose of calculating the management fee.
In addition, the Manager is entitled to receive a performance fee payable at the end of each financial period of
the Company at the rate of 15% of any excess growth of the net asset value over the Benchmark Net Asset Value per
share. No performance fee was payable for 2002 or 2003.
Under the Administration and Secretarial Agreement, the Group pays Collins Stewart Fund Management Limited an
administration fee of #80,000 per annum, payable quarterly in arrears.
4. Other expenses
Six months ended 31 October 2003 Six months ended 31 Year ended 30
(unaudited) October 2002 April 2003
(unaudited) (audited)
Revenue Capital Total Total Total
#'000 #'000 #'000 #'000 #'000
Custody & settlement fees 25 - 25 31 54
Audit fees 8 - 8 9 16
Directors' remuneration 11 - 11 15 26
Other expenses 113 - 113 64 146
Administration fee (see note 3) 40 - 40 40 80
197 - 197 159 322
5. Taxation
The Company and its Guernsey based Subsidiary, Blue Chip ZDP Limited, are exempt from Guernsey Income Tax under The
Income Tax (Exempt Bodies) (Guernsey) Ordinance 1989 and are charged an annual exemption fee of #600.
6. Zero Dividend Preference Shares issued by the Subsidiary
Six months ended Six months ended Year ended 30
31 October 2003 31 October 2002 April 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Amount due to ZDP Shares brought forward 11,740 10,795 10,795
Compounding entitlement of ZDP Shares for the period/year 507 466 945
Amount due to minority interests carried forward 12,247 11,262 11,740
On 1 June 2001, 10 million ZDP Shares were issued by Blue Chip ZDP Limited, a wholly-owned Subsidiary undertaking,
raising #10m by way of a placing on both The Channel Islands Stock Exchange and the London Stock Exchange. Blue
Chip ZDP Limited is authorised to issue 20 million ZDP Shares of 10p each.
ZDP Shareholders are not entitled to receive or participate in any dividends or other distributions out of the
profits of Blue Chip ZDP Limited available for dividend and resolved to be distributed in respect of any accounting
period or any other income or right to participate therein.
On a return of assets on liquidation, after payment of all debts and satisfaction of all creditors of Blue Chip ZDP
Limited, there shall be paid to ZDP Shareholders, from the surplus assets of Blue Chip ZDP Limited, an amount equal
to 100p as increased daily at such compound rate as will give an entitlement to 164.24p on the ZDP Redemption Date,
30 April 2007.
ZDP Shareholders will not have the right to receive notice of any general meeting of Blue Chip ZDP Limited or to
attend or vote at any such meeting except in respect of any resolution altering, modifying or abrogating any of the
rights and privileges attached to ZDP Shares or to wind up Blue Chip ZDP Limited.
7. Dividends
Six months ended 31 Six months ended 31 Year ended 30 April
October 2003 October 2002 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Dividends on ordinary shares:
1st interim of 0.50p (year ended 30 April 2003: 339 339 339
0.50p)
2nd interim of n/a (year ended 30 April 2003: - - 339
0.50p)
3rd interim of n/a (year ended 30 April 2003: - - 340
0.50p)
4th interim of n/a (year ended 30 April 2003: - - 340
0.50p)
339 339 1,358
8. Return per Ordinary Share
Six months ended 31 October 2003 Six months ended 31 Year ended 30
(unaudited) October 2002 April 2003
(unaudited) (audited)
Revenue Capital Total Total Total
pence pence pence pence pence
Return/(deficit) per 12.5p Ordinary Share 1.38p 7.62p 9.00p (27.40)p (35.80)p
-basic
Return per ZDP Share - 5.07p 5.07p 4.66p 9.45p
The revenue return per Ordinary Share is based on net revenue return attributable to equity shareholders of
#936,000 (31 October 2002: #1,923,000, 30 April 2003: #2,688,782) and on a weighted average number of 67,961,370
Ordinary Shares (31 October 2002: 67,882,526, 30 April 2003: 67,882,526) in issue throughout the period. The
capital return per Ordinary Share is based on the net capital return of #5,179,000 (31 October 2002: net capital
deficit of #20,520,000, 30 April 2003: net capital deficit of #26,993,000) and on a weighted average number of
67,961,370 Ordinary Shares (31 October 2002: 67,882,526, 30 April 2003: 67,882,526) in issue throughout the period.
As the average price of Ordinary Shares for the year was less than the exercise price of the Warrants there was no
dilution of the return per Ordinary Share.
The basic return per ZDP Share is based on an annualised redemption yield of 8.75%.
9. Listed investments
Six months ended 31 Six months ended 31 Year ended 30
October 2003 October 2002 April 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Opening valuation 34,199 69,428 69,428
Purchases at cost 33,476 37,770 56,311
Sales - proceeds (34,169) (39,071) (67,607)
- realised losses (4,221) (9,237) (14,227)
Decrease/(increase) in unrealised depreciation 10,604 (9,892) (9,706)
Closing valuation 39,889 48,998 34,199
Closing book cost 43,235 63,134 48,149
Closing unrealised depreciation (3,346) (14,136) (13,950)
Closing valuation 39,889 48,998 34,199
Realised losses on sales (4,221) (9,237) (14,227)
Decrease/(increase) in unrealised depreciation 10,604 (9,892) (9,706)
Gains/(losses) on investments for the period/year 6,383 (19,129) (23,933)
10. Long term bank loan
In May 2001 the Company entered into a loan agreement with Bank of Scotland ("the Bank") Corporate Banking for up
to a maximum of #28.5 million. The loan is for a term of approximately 6 years, although it will be repayable
earlier if an event of default occurs. The loan is also repayable prior to the maturity date at the option of the
Company. In addition, the Company has entered into an interest rate swap agreement to fix its interest payments on
the loan until 27 April 2007. After taking account of this swap, the interest rate payable on the loan is fixed at
5.74%.
At 31 October 2003, the market-to-market value of the swap was #(690,048) (30 April 2003: #(1,823,671)).
Covenants under the loan agreement
The Company has entered into covenants with Bank of Scotland that inter alia provide that:
* the value of the Permitted Investments must exceed 1.7 times the amount of the facility drawn down and
outstanding;
* the realisation value of all Specified Investments (companies with a market capitalisation above #500
million, United Kingdom Government Securities and cash) is required to be a minimum of 120% of the term loan
outstanding; and
* gross income must equal at least all interest payable under the loan agreements.
Breach of covenants and use of loan offset account
The Company breached the loan-to-value covenant along with a number of other financial covenants during the
previous year. On 24 January 2003 the Company agreed with the Bank that cash amounts deposited with the Bank, up
to a maximum amount of #10 million, be set-off against the existing borrowings for the purpose of determining
various financial covenants. The Company is currently discussing its options with Bank of Scotland with a view to
maintaining flexibility in the capital structure of the Company. A further announcement will be made in due
course.
Fair value of swap
The fair value of the interest rate swap as at 31 October 2003 was #(690,048) (30 April 2003: #(1,823,671)). The
fair value is the estimated amount that the Company would receive or pay to terminate the swap agreement at 31
October 2003.
Provision for swap break costs
Based on the financial position of the Company as at 31 October 2003 a loan repayment of #3,475,500 would
regularise the loan to value covenant position to 190 per cent. However, as of July 2003 the Company has been
making a provision to repay approximately #5million of loan. The swap breakage costs associated with this
repayment have been calculated as #121,061 (30 April 2003; #319,942) and have been provided for in these financial
statements as required by Financial Reporting Standard 12 "Provisions, Liabilities, and Assets".
11.Share Capital
31 October 2002 31 October 2002 30 April 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Authorised:
100,000,000 Ordinary Shares of 12.5p (31 October 2002 and 30 April
2003: 100,000,000) 12,500 12,500 12,500
Allotted, called up and fully paid:
68,397,823 Ordinary Shares of 12.5p each (31 October 2002:
67,882,526, 30 April 2003: 67,882,526) 8,550 8,485 8,485
The first interim dividend, announced on the 14 August 2003 required that 515,297 shares were to be issued to
satisfy the scrip dividend entitlement.
At 31 October 2003 there were 13,512,959 Warrants in issue (31 October 2002 and 30 April 2003: 13,512,959). Each
Warrant confers the right to subscribe for one Ordinary Share at 75p in each of the years 2002 to 2011.
12. Reserves
Share
premium
account Special reserves Capital reserve Revenue reserve
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
#'000 #'000 #'000 #'000 #'000
At 1 May 2003 29,939 - (35,757) 1,485 (4,333)
Net Return for the period - - 5,179 597 5,776
Transfer in reserves (5,000) 5,000 - - -
At 31 October 2003 24,939 5,000 (30,578) 2,082 1,443
On 22 September 2003 shareholders of the Company and Subsidiaries respectively passed resolutions, inter alia,
approving the transfer of #5,000,000 from the share premium accounts of the Company and the Subsidiary respectively
into new special reserves, in order to allow the repurchase of up to 14.99 per cent of the issued Ordinary Shares
and 30 per cent of the issued ZDP Shares. No repurchases of Shares have taken place to date.
13. Net asset value per Ordinary Share
The net asset value per Ordinary Share is based on the net assets attributable to equity shareholders of #9,993,000
(31 October 2002: #10,828,000, 30 April 2003: #4,152,000) and on 68,397,823 shares (31 October 2002: 67,882,526, 30
April 2003: 67,882,526) in issue at the end of the period.
As the price of Ordinary Shares at 31 October 2003 was less than the exercise price of the Warrants there was no
dilution of the net assets per Ordinary Share.
14. Reconciliation of movements in consolidated shareholders' funds
Six months ended 31 Six months ended 31 Year ended 30
October 2003 October 2002 April 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Return/(deficit) for the period/year 6,115 (18,597) (24,304)
Ordinary dividends (339) (339) (1,358)
Issue of share capital (scrip dividend - net of
issue costs)
65 - -
Satisfaction of scrip dividend entitlement - 58 108
Movement in shareholders' funds 5,841 (18,878) (25,554)
At 1 May 2003 4,152 29,706 29,706
At 31 October 2003 9,993 10,828 4,152
15. Reconciliation of operating activities to net cash operating inflow
Six months ended 31 Six months ended 31 Year ended 30 April
October 2003 October 2002 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
Net revenue return before finance costs and 1,178 2,164 3,171
taxation
Management fees charged to the capital account (170) (202) (357)
Decrease in other debtors and accrued income 133 254 345
Increase/(decrease) in other creditors and accruals 199 (54) (63)
Interest received on cash held in the loan offset (180) - (95)
account
Net cash inflow from operating activities 1,160 2,162 3,001
16. Reconciliation of net cash flow to movement in net debt
Six months ended 31 Six months ended 31 Year ended 30 April
October 2003 October 2002 2003
(unaudited) (unaudited) (audited)
#'000 #'000 #'000
(Decrease)/increase in cash in the period/year (62) 2,422 263
Increase in cash held in the loan offset accounts 180 - 10,095
Decrease in net debt in the period/year 118 2,422 10,358
Net debt at 1 May 2003 (17,700) (28,058) (28,058)
Net debt at 31 October 2003 (17,582) (25,636) (17,700)
17. Analysis of net debt
At 1 May 2003 Cashflows At 31 October 2003
(audited) (unaudited) (unaudited)
#'000 #'000 #'000
Cash at bank and in hand 705 (62) 643
Cash in loan offset account 10,095 180 10,275
Bank loans due after more than one year (28,500) - (28,500)
Total (17,700) 118 17,582
Enquiries:
Andrew Duquemin
Collins Stewart Fund Management Limited
2nd Floor, TSB House
Le Truchot
St Peter Port
Guernsey, GY1 4AE
Tel: 01481 731 987
Fax: 01481 720 018
This information is provided by RNS
The company news service from the London Stock Exchange
END
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