Final Results
13 December 2003 - 12:17AM
UK Regulatory
RNS Number:2098T
Henderson Strata Investments PLC
12 December 2003
HENDERSON GLOBAL INVESTORS
HENDERSON STRATA INVESTMENTS PLC
12 December 2003
HENDERSON STRATA INVESTMENTS PLC
Unaudited Preliminary Results for the year ended 31 October 2003
Highlights:
* Smaller companies lead a healthy recovery in share prices
* Net asset value per share up by 43.5%
Extracts from the Chairman's Statement:
Net Assets
We have seen a healthy recovery in share prices in all the major world markets
in the past year, led by smaller companies. Over the year ended 31 October 2003
the FTSE SmallCap (excluding investment companies) Index recorded a rise of
40.2% in capital terms while Strata's net asset value per share rose by 43.5%.
Review
The increasing confidence in economic recovery has boosted smaller company share
prices, which have risen sharply from the quite depressed levels reached early
in 2003. Bid activity has been an added stimulant as companies have become more
prepared to take the first steps towards consolidation. The improving background
has led to an increase in new issues in recent weeks, and a few cash calls from
companies keen to replace excessive debt levels with equity.
Most of the #4 million cash held at the time of the interim report has been
invested, predominantly in the UK market and generally in more marketable
securities. The investment of our cash balances reflects the more optimistic
outlook that has become increasingly apparent in recent months.
During the year just under 1% of the issued shares were bought in for
cancellation, at discounts to net asset value exceeding 20%. We expect to
continue to buy back our own shares when we believe it to be appropriate to do
so.
The revenue account has improved over the year, reflecting higher income from
the portfolio and helped in the earlier months by the cash held on deposit. We
shall not be paying a dividend, however, as the negative balance on the revenue
reserve brought forward exceeds the net revenue for the year.
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HENDERSON STRATA INVESTMENTS PLC
Unaudited Preliminary Results for the year ended 31 October 2003
Outlook
Valuations of smaller companies leave scope for further appreciation as profit
forecasts continue to be adjusted upwards. The economic background is slowly
improving and there are encouraging signs of companies committing to capital
spending, thus replacing the expected slowdown in consumer expenditure.
Investors have been more adventurous since the lows of March and, encouraged by
good returns, look set to take a more positive long term approach. This bodes
well for share prices in 2004.
Frans ten Bos
Chairman
12 December 2003
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HENDERSON STRATA INVESTMENTS PLC
Unaudited Preliminary Results for the year ended 31 October 2003
Statement of Total Return (incorporating the revenue account)
for the year ended 31 October 2003
Year ended 31 October 2003 Year ended 31 October 2002
(unaudited) (audited)
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Total capital gains/(losses) on - 22,483 22,483 - (31,223) (31,223)
investments
Income from fixed asset investments 1,151 - 1,151 888 - 888
Other interest receivable and similar 154 - 154 109 - 109
income
---------- ---------- ---------- ---------- ---------- ----------
Gross revenue and capital gains/(losses) 1,305 22,483 23,788 997 (31,223) (30,226)
Management fee (624) - (624) (891) - (891)
Other administrative expenses (170) - (170) (216) - (216)
--------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on ordinary activities
before interest payable and taxation 511 22,483 22,994 (110) (31,223) (31,333)
Interest payable (11) - (11) (68) - (68)
---------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on ordinary activities
before taxation 500 22,483 22,983 (178) (31,223) (31,401)
Taxation on net return/(loss) on ordinary (50) - (50) (38) - (38)
activities
----------- ---------- ---------- ---------- ---------- ----------
Net return/(loss) on ordinary activities
after taxation 450 22,483 22,933 (216) (31,223) (31,439)
Dividends - nil - - - - - -
----------- ------------ ----------- ---------- ---------- ----------
Transfer to/(from) reserves 450 22,483 22,933 (216) (31,223) (31,439)
======= ======= ======= ====== ====== ======
Return/(loss) per ordinary share (note 1) 2.61p 130.15p 132.76p (1.23)p (177.67)p (178.90)p
======= ======= ======= ====== ====== ======
The revenue columns of this statement represent the revenue accounts of the
Company.
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HENDERSON STRATA INVESTMENTS PLC
Unaudited Preliminary Results for the year ended 31 October 2003
Balance Sheet
at 31 October 2003
2003 2002
#'000 #'000
Fixed asset investments
Listed investments at market value:
United Kingdom 35,404 19,884
Overseas 33,631 23,301
----------- ----------
69,035 43,185
AIM investments at market value 6,610 2,640
Unquoted investments at directors' valuation 59 98
----------- -----------
75,704 45,923
----------- -----------
Current assets
Debtors 1,539 171
Cash at bank 665 7,694
----------- -----------
2,204 7,865
Creditors: amounts falling due within one year (1,906) (289)
----------- -----------
Net current assets 298 7,576
----------- -----------
Total net assets 76,002 53,499
======= =======
Capital and reserves
Issued share capital 4,297 4,339
Capital reserves
Share premium account 16,479 16,479
Capital reserve - realised 109 67
Capital reserve - unrealised 55,420 71,291
Unrealised profits 2,991 (34,933)
Revenue reserve (3,294) (3,744)
----------- -----------
Equity shareholders' funds 76,002 53,499
======= =======
Net asset value per ordinary share (note 1) 442.22p 308.23p
======= =======
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HENDERSON STRATA INVESTMENTS PLC
Unaudited Preliminary Results for the year ended 31 October 2003
Cash Flow Statement
for the year ended 31 October 2003
2003 2003 2002 2002
#'000 #'000 #'000 #'000
Net cash inflow from operating activities 228 5
Servicing of finance
Interest paid (12) (70)
----------- ------------
Net cash outflow from servicing of finance (12) (70)
Taxation
Tax recovered 6 18
----------- ------------
Net tax recovered 6 18
Financial investment
Purchase of investments (26,273) (21,298)
Sale of investments 19,525 34,690
----------- ------------
Net cash (outflow)/inflow from financial investment (6,748) 13,392
Financing
Net loans repaid - (5,510)
Purchase of own shares (430) (707)
----------- ------------
Net cash outflow from financing (430) (6,217)
----------- ------------
(Decrease)/increase in cash (6,956) 7,128
====== =======
Reconciliation of net cash flow to movement in net funds/(debt)
(Decrease)/increase in cash as above (6,956) 7,128
Cash outflow from movement in debt - 5,510
Exchange movements (73) (59)
----------- ------------
Movement in net funds (7,029) 12,579
Net funds/(debt) at 1 November 7,694 (4,885)
----------- ------------
Net funds at 31 October 665 7,694
====== =======
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HENDERSON STRATA INVESTMENTS PLC
Unaudited Preliminary Results for the year ended 31 October 2003
Notes :
1.
Return/(loss) per ordinary share
The revenue return per ordinary share is based on the net return on ordinary activities after taxation
of #450,000 (2002: loss of #216,000) and on the weighted average number of ordinary shares of 25p each in
issue during the year of 17,274,201 (2002: 17,573,511).
The capital return per ordinary share is based on the net capital gains for the year of #22,483,000 (2002:
net capital losses of #31,223,000) and on the weighted average number of ordinary shares of 25p each in
issue during the year, as stated above.
2. Issued Share Capital
The number of ordinary shares of 25p each in issue at 31 October 2003 was 17,186,515 (2002:
17,356,850).
3. Dividend
No dividend has been declared in respect of the year.
4. 2003 Accounts
The preliminary figures for the year ended 31 October 2003 are an extract from the Company's latest accounts
for that period. These accounts have not yet been delivered to the Registrar of Companies, nor have the
auditors yet reported on them.
5. 2002 Accounts
The figures and financial information for the year ended 31 October 2002 are an extract from the latest
published accounts of the Company and do not constitute the statutory accounts for that year. Those accounts
have been delivered to the Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either section 237(2) or section 237(3) of the Companies
Act 1985.
6. Annual Report
The full annual report and accounts will be posted to shareholders early in January 2004 and copies
will be available thereafter from the Secretary at the Company's Registered Office, 4 Broadgate, London EC2M
2DA.
7. Annual General Meeting
The Annual General Meeting will be held on Thursday 12 February 2004 at 2.30 pm at 4 Broadgate, London EC2M
2DA.
8. Continuation Vote in 2005
The Company's articles of association require a continuation vote to be put, by ordinary resolution, to the
Annual General Meeting to be held in 2005.
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HENDERSON STRATA INVESTMENTS PLC
Unaudited Preliminary Results for the year ended 31 October 2003
For further information please contact:
Richard Smith
Director
Henderson Strata Investments plc
Telephone: 020 7818 4368
or
Stephen Westwood
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 5517
or
Stephen Phillips
Associate Director
Henderson Global Investors
Telephone: 020 7818 6417
or
Vicki Staveacre
Press Office
Henderson Global Investors
020 7818 4222
This information is provided by RNS
The company news service from the London Stock Exchange
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