Interim Results
24 August 2005 - 9:35PM
UK Regulatory
LIFE OFFICES OPPORTUNITIES TRUST PLC
Unaudited results for the six months to 30 June 2005
The investment objective of Life Offices Opportunities Trust Plc ("LOOT") is to
achieve long term capital growth from a diversified portfolio of with-profits
life assurance policies. The Trust, with net assets of �28.8 million, is
managed by SVM Asset Management ("SVM"), the independent Edinburgh based
investment boutique.
Salient Points
* Net asset value per share increased by 3.8% to 122.2p during the period
under review.
* Bonus announcements varied strongly between offices. There were some
substantial cuts, notably from Standard Life but for the first time in many
years there were some bonus increases. Prudential, Scottish Widows and
Norwich Union have all put through small increases.
* Some offices have got bonuses back to sustainable levels.
For further information please contact:
Brian Moretta SVM Asset Management Limited 0131 226 6699
Roland Cross Broadgate 020 7726 6111
.
LIFE OFFICES OPPORTUNITIES TRUST PLC
CHAIRMAN'S STATEMENT
For the six months to 30 June 2005
Commenting on the results for the six months to 30 June 2005, Chairman, John
Brumwell, said:
"I am pleased to report the first half of 2005 has seen your Company's assets
start to make progress again. No further policies have been bought and policies
have continued to mature as expected. Over the six month period, the net asset
value per share grew 3.8 per cent to 122.19p. The investment objective of your
Company is to achieve long term capital growth and no dividend is payable. The
attached interim accounts have been prepared on a basis consistent with its
anticipated 2005 IFRS accounting policies.
The highlight of the first half has been the bonus announcements. As in
previous years we saw some substantial cuts, notably from Standard Life. But
the pattern varied strongly between offices and, for the first time in many
years, we saw some bonus increases. Both Prudential and Scottish Widows put
through small increases in the first quarter and Norwich Union has just done
the same for its interim announcements. While these have not reversed the cuts
of recent years, and we have no expectation that this will happen, it is
reassuring that some offices have got bonuses back to sustainable levels.
Corporate news has again been restricted to the closed fund area. Both
Resolution Life and Britannic each announced purchases of smaller companies,
before proposing a merger of the two companies. While this will create a larger
consolidator and, no doubt many future deals will follow, the net effect on
policyholders is likely to continue to be limited.
In the wider traded endowment market demand has remained strong, driven, as it
has been for the last year, by German funds. The demand remains mostly for
longer dated policies than the Fund owns. This has been illustrated by the bid
for the policies of BGI Endowment Fund III. However, there now appears to be a
shortage of suitable policies and we remain alert to any sale opportunities
that may arise should demand build up in shorter dated policies.
The recent bonus changes have largely confirmed our previous outlook. First
half performance from the asset markets has been good and should be supportive,
though we remain aware that bonus changes are likely to be more sensitive to
asset prices than they were ten years ago. In the short term we expect only
small bonus changes and a more normal period of performance. Looking further
out bonuses will on average continue to experience small reductions, though
most offices are now close to sustainable rates, and in some cases are below
them. We believe that your Company is well placed and will benefit from future
asset growth."
John Brumwell
Chairman
.
Life Offices Opportunities Trust plc
Summarised Statement of Total Return (unaudited)
6 months to 30 June 2005 6 months to 30 June 2004
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains on sale of - 393 393 - 141 141
investments
Movement in unrealised - 1,332 1,332 - (286) (286)
appreciation
-------- -------- -------- -------- -------- --------
Gains on investments - 1,725 1,725 - (145) (145)
Income 1 - 1 2 - 2
Investment management fees - (170) (170) - (168) (168)
Other expenses (54) (110) (164) (47) (112) (159)
-------- -------- -------- -------- -------- --------
Return before interest and (53) 1,445 1,392 (45) (425) (470)
taxation
Bank overdraft interest - (350) (350) - (378) (378)
-------- -------- -------- -------- -------- --------
Transfer to reserves (53) 1,095 1,042 (45) (803) (848)
-------- -------- -------- -------- -------- --------
Return per ordinary Share (0.22p) 4.65p 4.43p (0.19p) (3.41p) (3.60p)
Balance Sheet (unaudited)
As at As at
30 June 30 June
2005 2004
�'000 �'000
Endowment policies 41,797 41,024
Net current liabilities (13,020) (12,790)
---------- ----------
Ordinary shareholders funds 28,777 28,234
---------- ----------
Net asset value per ordinary share 122.19p 119.89p
.
Summarised Group Cash Flow Statement
(unaudited)
6 months to 6 months to
30 June 30 June
2005 2004
�'000 �'000
Net cash flow from operating activities (398) (334)
Returns on investment and servicing (350) (378)
finance
Capital expenditure and financial 1,221 23
investment
---------- ----------
Increase / (decrease) in cash 463 (689)
---------- ----------
Life Offices Opportunities Trust plc Cont'd
Notes
1. The results reflect the adoption in the accounts of the 2003 Statement of
Recommended Practice (SORP) issued by the Association of Investment Trust
Companies. The results have been prepared on a basis consistent with its
anticipated 2005 IFRS accounting policies.
2. Returns per Ordinary Share are based on 23,550,000 shares in issue during
the period (30 June 2004 - same). The number of shares in issue at 30 June
2005 was 23,550,000. (30 June 2004 - same).
3. The above figures do not constitute full group accounts in terms of Section
240 of the Companies Act 1985. The accounts for the year to 31 December 2004,
which were unqualified, have been lodged with the Registrar of Companies. The
interim report will be mailed to shareholders in August 2005. Copies will be
available for inspection at 7 Castle Street, Edinburgh, the registered office
of the Company.
ENDS
END
Life Offices Opportunities (LSE:LOT)
Historical Stock Chart
From Nov 2024 to Dec 2024
Life Offices Opportunities (LSE:LOT)
Historical Stock Chart
From Dec 2023 to Dec 2024
