Final Results
19 December 2003 - 2:05AM
UK Regulatory
RNS Number:4361T
Schroder Split Investment Fund PLC
18 December 2003
18 December 2003
PRESS RELEASE
SCHRODER SPLIT INVESTMENT FUND PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 OCTOBER 2003
The Directors of Schroder Split Investment Fund plc announce the unaudited
preliminary results for the Group's year ended 31 October 2003
Highlights 31 October 2003 31 October 2002 % change
Pence Pence
Net asset value per
Zero Dividend Preference Share 113.96p 105.76p +7.8
Ordinary Share 73.19p 65.50p +11.7
Share price per
Zero Dividend Preference Share 119.00p 105.25p +13.1
Ordinary Share 67.75p 49.00p +38.3
Total return to shareholders Results for the year to 31 Results for the nine month period
October 2003 to 31 October 2002
#'000 #'000*
Zero Dividend Preference Shares 2,252 1,583 NA
Ordinary Shares 5,644 (9,138) NA
* The Group commenced operations following listing on the London Stock Exchange
on 31 January 2002. The comparative results in this report are for the period
from 6 December 2001 to 31 October 2002.
Highlights:
* Strong performance during the year, resulting in the Group's total return
of 14.1% compared to the FTSE All-Share Index of 13.6%.
* Dividends of 6.0 pence per share were declared during the year,
maintaining the same rate as the previous period.
CHAIRMAN'S STATEMENT
Performance
I am pleased to report that during the year ended 31 October 2003, the Group's
net asset value outperformed both the FTSE All-Share Index and the FTSE 350
Higher Yield Index, producing a total return on funds attributable to Ordinary
and Zero Dividend Preference Shareholders of 14.1% compared to the FTSE
All-Share Index total return of 13.6% and the FTSE 350 Higher Yield Index total
return of 12.9%.
Dividends
The total dividends for the year ended 31 October 2003 amounted to 6.0 pence per
share, following the declaration of a fourth interim dividend of 1.8 pence per
share payable on 31 December 2003. This is at the same rate as last year and is
in line with the original expectations given in the Company's prospectus,
notwithstanding a more challenging environment in which many companies have
surprised the market by cutting their dividends.
Share Prices
The discount to net asset value of the price of the Company's ordinary shares
significantly narrowed during the year from 25.2% at the beginning of the
financial year to 7.4% at 31 October 2003. Also, the Zero Dividend Preference
Shares, which began the financial year at a slight discount to asset value,
finished the year trading at a premium of 4.4% at 31 October 2003. These
improvements were mainly due to a change in market sentiment.
Also underpinning the price of the ordinary shares is the Board's power to
purchase shares in the market for cancellation. The Board considers on a regular
basis whether this power should be exercised and a resolution to renew the
authority will be proposed at the forthcoming Annual General Meeting.
Corporate Governance
During the summer a new Combined Code was published by the Financial Reporting
Council. The Code will apply to all UK listed companies for accounting periods
beginning on or after 1 November 2003. In addition, new listing rules for
investment companies were published in October 2003.
The new Combined Code and regulations will together create a new governance
environment for investment trusts. The Board has always considered corporate
governance matters with high priority and expects to comply with new regulations
with little difficulty.
In the light of amendments to Listing Rule 29.1(1), the Company made an
announcement on 30 October 2003 to clarify that its policy is to invest no more
than 15% of its gross assets in other listed investment companies (including
investment trusts). The announcement also confirmed that, in line with the
Company's prospectus published in December 2001, the Company has not and will
not invest in securities issued by other split capital investment companies.
Portfolio and Outlook
The Investment Manager has continued to invest the equity portion of the
portfolio, comprising approximately 75% of gross assets, in companies with
relatively strong balance sheets, good market positions but with low valuations.
The fixed income exposure comprising approximately 25% of gross assets at 31
October 2003 was trimmed by the sale of #1 million of our holdings in bond units
earlier in the year. This enabled the Company to take advantage of the pricing
differentials between asset classes and the proceeds were re-invested in
equities.
The Company's fixed rate bank loan of #12.1 million represented 16.4% of gross
assets at the year-end. It is due for repayment in November 2007.
Your Board believes that performance to date in volatile and challenging market
conditions has been satisfactory and that this should provide shareholders with
re-assurance that the business model adopted at launch remains resilient.
John Padovan
Chairman
Unaudited Group Statement of Total Return
Results for the year ended Results for the period ended
31 October 2003 31 October 2002
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Gains /(losses) on - 5,787 5,787 - (9,218) (9,218)
investments
Income 3,517 - 3,517 2,756 - 2,756
Investment management fee (138) (206) (344) (117) (175) (292)
Other administrative expenses (332) - (332) (253) - (253)
Return / (deficit) on 3,047 5,581 8,628 2,386 (9,393) (7,007)
ordinary activities before
finance costs and taxation
Interest payable (293) (439) (732) (219) (329) (548)
Provision for the redemption - (2,252) (2,252) - (1,583) (1,583)
of Zero dividend preference
shares in the subsidiary
Return / (deficit) on 2,754 2,890 5,644 2,167 (11,305) (9,138)
ordinary activities before
taxation
Taxation on ordinary (181) 181 - (127) 127 -
activities
Return/(deficit) after 2,573 3,071 5,644 2,040 (11,178) (9,138)
taxation attributable to
ordinary shareholders
Dividends : ordinary shares
- first interim dividend (577) - (577) (577) - (577)
- second interim dividend (577) - (577) (577) - (577)
- third interim dividend (577) - (577) (700) - (700)
- fourth interim dividend (742) - (742) - - -
Transfer to reserves 100 3,071 3,171 186 (11,178) (10,992)
Return per share
Ordinary shares 6.24p 7.45p 13.69p 4.95p (27.13)p (22.18)p
Dividends per share 6.00p - 6.00p 4.50p - 4.50p
Return per Zero dividend preference share - 8.20p 8.20p - 5.76p 5.76p
Unaudited Abridged Group Cash Flow Statement Results for the Results for the period ended
Year ended 31 October 2002
31 October 2003
#'000 #'000
Net cash inflow from operating activities 2,934 2,025
Bank loan interest paid (732) (548)
Dividends paid (2,431) (1,154)
UK tax paid (24) (136)
Net cash inflow/(outflow) from investing activities (635) (19,631)
Net cash (outflow)/inflow from financing (16) 20,437
Net cash (outflow)/inflow (904) 993
Summary Unaudited Summary Unaudited Summary Unaudited Summary Unaudited
Net Assets Statement Net Assets Statement Net Assets Statement Net Assets
at 31 October 2003 at 31 October 2003 at 31 October 2002 Statement at 31
Group Company Group October 2002
Company
#'000 #'000 #'000 #'000
Fixed Asset Investments
Equities listed in the 54,019 54,019 48,839 48,839
United Kingdom
Fixed interest 18,059 18,059 18,715 18,715
investments
Investment in subsidiary - 50 - 50
72,078 72,128 67,554 67,604
Net current assets 1,480 1,430 581 531
Creditors : Amounts
falling due after more
than one year
Loan facility 12,100 12,100 (12,100) (12,100)
Amount owed to group - 31,302 - (29,050)
undertaking
Zero dividend preference 31,302 - (29,050) -
shares in the subsidiary
Net Assets 30,156 30,156 26,985 26,985
Funds attributable* to
Ordinary shares 30,156 26,985
Zero dividend preference 31,302 29,050
shares in the subsidiary
61,458 56,035
Net asset value per zero 113.96p 105.76p
dividend preference share
Net asset value per 73.19p 65.50p
ordinary share
*Funds Attributable may be defined as the net assets employed before deducting
amounts owed in respect of zero dividend preference shares.
Notes
1. The above financial information is unaudited and does not amount to statutory
accounts under Section 240 of the Companies Act 1985 (as amended) for the year
ended 31 October 2003 or the period ended 31 October 2002. The statutory
accounts for the period from 6 December 2001 to 31 October 2002 have been
delivered to the Registrar of Companies following the Company's annual general
meeting. The auditors reported on those accounts; their report was unqualified
and did not contain a statement under s237(2) or (3) Companies Act 1985. The
statutory accounts for the year ended 31 October 2003 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the company's annual general meeting.
2.The Group accounts consolidate the accounts of the Company and its wholly
owned subsidiary Schroder Split ZDP plc.
3.As permitted by Section 230 of the Companies Act 1985, the Company has not
presented its own revenue account. The net revenue after taxation for the year
to 31 October 2003 of the Company dealt with in the accounts of the Group was
#2,573,000 (31 October 2002 : #2,040,000.)
4. Gross Assets has been defined as "Total Assets less Current Liabilities"; 31
October 2003:#73.6m (31 October 2002:#68.1m.)
This statement was approved by the Board of Directors on 17 December 2003.
The Report and Accounts for the year ended 31 October 2003 will be mailed to
shareholders at their registered addresses in January 2004 and from the date of
release copies of the Annual Report and Accounts will be available to the public
at the Company's registered office: 31 Gresham Street, London, EC2V 7QA.
Enquiries: Schroder Investment Management Limited
Neil Olofsson (020 7658 3496)
18 December 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FFSFLASDSELE