Final Results
10 Marzo 2006 - 12:05PM
UK Regulatory
RNS Number:6652Z
JPMorganFleming Income&Growth ITPLC
10 March 2006
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN FLEMING INCOME & GROWTH INVESTMENT TRUST PLC
UNAUDITED FIGURES FOR THE YEAR ENDED 31ST DECEMBER 2005
The Directors of JPMorgan Fleming Income & Growth Investment Trust plc announce
the Company's unaudited results for the year ended 31st December 2005.
Performance and Outlook
I am pleased to report that the total return on shareholders' funds for the year
ending 31st December 2005 was +20.9%. This was ahead of the benchmark return of
+18.1%.
As I reported at the half year, we made some changes to the portfolio to bring
its composition almost exactly into line with our investment objectives. Our
bank borrowings are now matched by cash and gilt-edged investments and our asset
allocation is close to our benchmark. Although we see no reason to depart from
this 'neutral' position at the moment, any further material increase in share
prices might cause the Board to reconsider this stance, bearing in mind the
approaching end of the Company's life.
The Company is due to be wound up at the end of 2006 unless shareholders agree
to a 'roll-over'. Discussions with our advisers suggest that there may well be
sufficient demand from shareholders for a new well managed split level trust
similar to the existing Company. The Board is hopeful, subject as always to
market conditions, of bringing forward proposals for shareholders to consider
later in the year.
Manager
During the year, the Manager changed its name from J.P. Morgan Fleming Asset
Management (UK) Limited to JPMorgan Asset Management (UK) Limited ('JPMAM'). The
Board has conducted a formal review of the services provided to the Company by
JPMAM. This review focussed on their performance record, management processes,
investment style, resources and risk control mechanisms. Following this review,
we are satisfied that their continuing appointment is in the best interests of
shareholders.
Revenue and Dividends
At the half year, we reported that the accounts had, for the first time, been
prepared in accordance with the new UK Financial Reporting Standards. We also
noted that an unintended consequence of the changes, construed literally, for
split capital investment trusts was that they did not allow the payment of a
dividend. However, I am pleased to say that legislation reversing this position
was successfully introduced on 1st October 2005 and the second interim dividend
was therefore duly paid on 3rd October 2005 to income shareholders on the
register as at 9th September 2005.
The Board is recommending that a final dividend of 2.25p per share be paid on
21st April 2006 to income shareholders on the register as at 24th February 2006.
The final dividend, when added to the three interim dividends of 2.25p per share
already paid by the Company, gives a total for the year of 9.00p per income
share.
Our undistributed revenue reserves after allowing for payment of the final
dividend are now approximately #1.6m. Income shareholders are entitled to these
reserves and our projections suggest that it will be necessary to draw fully on
them in order to maintain future dividends at the current level. Our income is
reducing as a result of the decision to cease the writing of options which we
reported at the half year.
Share Repurchase Facility
At last year's Annual General Meeting, shareholders gave the Directors authority
to repurchase the Company's shares for cancellation. Although no such
repurchases have taken place, the Directors continue to believe that
circumstances could arise in which the mechanism could be of benefit to
shareholders. They therefore propose that the authority be renewed for a further
period.
Board of Directors
There were no changes to the composition of the Board during the financial year.
However, since the year end the Board has undertaken a search for a new Director
using the services of an executive search consultant. A number of suitable
candidates were identified and Mr Karl Sternberg was appointed a Director on
27th February 2006. Karl is currently Chief Executive of Oxford Investment
Management and was previously Chief Investment Officer at Deutsche Asset
Management. I am confident that he will make a significant contribution to the
Board's future deliberations. He is standing for election at the Annual General
Meeting.
Michael Kennedy is leaving the Board at the conclusion of the Annual General
Meeting and will not therefore be seeking re-election. On the behalf of the
Company, I would like to thank him for his wise counsel during the ten years
that he has served on the Board.
In accordance with the Company's Articles of Association, Nicholas Craig Harvey
and I retire by rotation at the Annual General Meeting. Nicholas has a wealth of
experience in the fund management industry and I have no hesitation in
recommending his re-election. Nicholas and I have served as Directors for more
than nine years. The Board does not believe that length of service should
disqualify a Director from seeking re-election and, in proposing our respective
re-elections, the Board has taken into account the recent recruitment of new
blood.
During the year, the Board carried out a satisfactory evaluation of the
Directors, the Chairman, the Board itself and its Committees.
Annual General Meeting
This year's Annual General Meeting will be held on Thursday 20th April 2006 at
11.00 a.m. at The Armourers' Hall, 81 Coleman Street, London, EC2R 5BJ. As in
previous years, in addition to the formal part of the meeting, there will be a
presentation from the investment manager who will answer any questions about the
portfolio and its performance.
Alan Cole
Chairman
10th March 2006
For further information please contact:
Hilary Lowe, JPMorgan Asset Management (UK) Limited.............020 7742 6000
JPMorgan Fleming Income & Growth Investment Trust plc
Unaudited figures for the year ended 31 December 2005
Income Statement (Unaudited)
Year ended 31 December 2005 Year ended 31 December 2004
(restated)
Revenue Capital Total Revenue Capital Total
return return return return return return
#'000 #'000 #'000 #'000 #'000 #'000
Realised gains on investments - 6,037 6,037 - 727 727
Unrealised gains on investments - 18,777 18,777 - 16,470 16,470
Net (losses)/gains on foreign currency cash
& short-term deposits held during the year
- (71) (71) - 151 151
Unrealised (losses)/gains on currency hedge
- (38) (38) - 16 16
Net change in exposure to open option
contracts
- - - - 6 6
Other capital charges - (4) (4) - (3) (3)
Income from investments 8,526 - 8,526 9,264 - 9,264
Other income 1,456 - 1,456 971 - 971
_______ ________ _______ _______ _______ _______
Gross revenue and capital returns 9,982 24,701 34,683 10,235 17,367 27,602
Management fee payable (862) (575) (1,437) (760) (506) (1,266)
Performance fee payable - (240) (240) - (211) (211)
Other administrative expenses (302) - (302) (266) - (266)
_______ _______ _______ _______ _______ _______
Net return before finance charges and
taxation
8,818 23,886 32,704 9,209 16,650 25,859
Interest payable (1,640) (1,095) (2,735) (1,715) (1,144) (2,859)
Dividends on income shares (7,352) - (7,352) (9,190) - (9,190)
_______ _______ _______ _______ _______ _______
Net (loss)/return before taxation (174) 22,791 22,617 (1,696) 15,506 13,810
Taxation - - - (3) - (3)
_______ _______ _______ _______ _______ _______
Transfer (from)/to reserves (174) 22,791 22,617 (1,699) 15,506 13,807
Revenue return per income share 8.79p - 8.79p 9.17p - 9.17p
Return per capital share - 23.99p 23.99p - 15.08p 15.08p
The results for the year ended 31 December 2004 have been restated in accordance
with Financial Reporting Standards 21, 25 and 26.
Following the introduction of FRS25: 'Financial Instruments: Disclosure and
Presentation', the income and capital shares are now classed as liabilities in
order that the rights and obligations attributable to the income and capital
shareholders' are more appropriately reflected in the accounts. This means that
there are no shareholders funds and accordingly a Reconciliation of Movements in
Shareholders' Funds has not been presented. It should be noted that these
changes are purely presentational and the rights and obligations attributable to
income and capital shareholders are unchanged.
JPMorgan Fleming Income & Growth Investment Trust plc
Unaudited figures for the year ended 31 December 2005
BALANCE SHEET 31 December 31 December
2005 2004
#'000 #'000
Investments at fair value through profit or loss 196,032 193,762
Net current (liabilities) / assets (25,624) 1,443
Long term loan - (46,820)
_______ _______
Total net assets 170,408 148,385
===== =====
Net asset value per share
Income shares 80.25p 76.95p
Capital Shares 128.38p 104.72p
CASH FLOW STATEMENT
2005 2004
#'000 #'000
Net cash inflow from operating activities 8,175 8,921
Net cash outflow from returns on investments and servicing of
finance
(10,208) (12,049)
Net cash inflow from financial investment 22,315 1,466
_______ _______
Increase/(decrease) in cash for the year 20,282 (1,662)
===== =====
The results for the year ended 31 December 2004 have been restated in accordance
with Financial Reporting Standards 21, 25 and 26
The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The comparative financial
information is based on the statutory accounts for the year ended 31st December
2004. These accounts, upon which the auditors issued an unqualified opinion,
have been delivered to the Registrar of Companies. The auditors have reported
under Section 235 on the accounts for 31 December 2004 and 31 December 2005. The
preliminary announcement is prepared on the same basis as the previous year's
annual accounts
JPMORGAN ASSET MANAGEMENT (UK) LIMITED
This information is provided by RNS
The company news service from the London Stock Exchange
END
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