MERRILL LYNCH NEW ENERGY TECHNOLOGY plc
PRELIMINARY ANNOUNCEMENT OF RESULTS
in respect of the year ended 31 October 2007
Highlights
- Another good year for the shareholders of the Company with NAV up by 51.9%
and share price by 47.6%.
- Gathering momentum for central and local government initiatives has
provided sustained support for the new energy technology sector.
Chairman's Statement
It is pleasing to note that in the year to 31 October 2007 the Company's Net
Asset Value per share ("NAV") increased by 51.9% while the share price
increased by 47.6%. For much of the year, the Company's shares traded at a
premium to NAV but slipped to a small discount in the latter part of the year
reflecting the uncertainties in world financial markets.
Equity markets have been dominated for much of 2007 by the contagion arising
from the subprime credit crisis. The new energy sector has not been immune to
the volatility generated by these concerns, in tandem with the fluctuating
views on the general outlook for corporate profits.
Earnings and dividends
The total return for the year was �55,979,000 (2006: �18,352,000) which
comprised a revenue loss of �1,182,000 (2006: loss of �1,222,000) and a capital
return of �57,161,000 (2006: �19,574,000). The Board, in line with previous
years, is not recommending the payment of a dividend.
Your Company received �791,000 of income from investments during the year
compared to �211,000 in the prior year. This increase is due to holding more of
your Company's assets in dividend paying stocks. In addition to the Manager's
asset allocation decisions, more companies within our universe are now paying
dividends and some companies continue to increase the size of their dividends
as they become more profitable. Shareholders should not expect dividend income
to rise annually as this may be impacted by changes to asset allocation
within the portfolio.
Awards
I am delighted to report that at the annual Investment Week Investment Trust
awards your Company was honoured with the Best Specialist Trust award.
Issue of new shares and share buy back programme
At the Company's Annual General Meeting ("AGM") in February of this year, the
Directors were granted authority to allot up to 21,215,000 ordinary shares
(representing 10% of the Company's issued share capital) without first offering
them to existing shareholders in proportion to their holding. This authority
was renewed at an Extraordinary General Meeting ("EGM") in July and the
Directors were granted authority to issue a further 23,905,000 ordinary shares
(representing 10% of the Company's issued share capital on 6 July) without
first offering them to existing shareholders in proportion to their holding. To
the date of this report the Company has issued 28,850,000 shares at premia to
NAV resulting in an uplift in NAV of 0.26%. Further details of the Company's
share capital are set out in note 8 to the financial statements. The Board will
be seeking to renew this authority at the forthcoming AGM.
The Company was granted authority by its shareholders at the 2007 AGM to
purchase a maximum of 14.99% of its own shares for cancellation and to hold
shares acquired by way of market purchase in treasury, rather than having to
cancel them. Given that the shares have traded at a premium or a small discount
in the year, no purchases have been made during the year under this authority.
However the Company will seek to renew its authority at the forthcoming AGM.
Unquoted investments
We will continue to look for appropriate unquoted opportunities and our
preference will normally be to seek opportunities for investment in companies
which we believe are likely to undertake an IPO within two years or so.
In the year to 31 October 2007, we have invested in two unquoted companies,
Sunopta Bioprocess and Tantalus. Further details of these investments are
provided in the Investment Manager's report. The Manager continues to review
opportunities and we will invest when we believe that it will be advantageous
for us to do so.
Company name
Following the merger of Merrill Lynch Investment Managers with BlackRock in
September 2006, BlackRock became the master brand for the merged business.
Accordingly, a full product rebrand is underway and the Board now expects to
put forward proposals with regard to your Company's name in the Spring of 2008.
Directorate
As mentioned in my interim report we are very pleased to welcome John Roberts
to the Board. John, who retired in 2006 as chief executive of United Utilities
PLC, has wide-ranging experience of alternative energy and energy technology as
well as traditional energy resources. He is currently a non executive director
of International Power plc and Royal Bank of Canada Europe Limited and is a
member of the Advisory Board of Climate Change Capital Limited.
VAT
The Board welcomes the success of the Association of Investment Companies
("AIC") and JPMorgan Claverhouse Investment Trust plc who have won their
lengthy legal test case against HM Revenue & Customs ("HMRC") challenging the
imposition of VAT on management services supplied to investment trusts.
HMRC have now accepted the European Court of Justice's judgement of 28 June
2007 that management services supplied to investment trusts should be exempt
from VAT.
Total irrecoverable VAT incurred by the Company on management fees since
inception is estimated at �500,000 and the prospective cost saving for your
Company is estimated at �154,000 per annum. The Manager has already submitted
claims to recover from HMRC any amounts repayable as a result of the AIC and
JPMorgan Claverhouse case (up to 30 September 2006) and is awaiting
clarification from HMRC regarding the basis on which repayments will be made,
which may have an impact on the amounts recovered. Claims for the period from
30 September 2006 onwards will be made well before the deadline of 29 September
2009. Given the volume of claims HMRC have to process, it is likely to be a
significant period of time before any amounts are refunded. The
amounts involved will not have a material impact on the Company's NAV.
Prospects
Moderating global growth looks likely to be a central theme for the year ahead,
and your Company will be affected by this. However, high energy prices and
escalating political sensitivity on energy security and climate change should
provide continued momentum for the Company's investments within a less certain
world.
Ewen Macpherson
17 December 2007
Investment Manager's Report
Overview
In many ways the last year has been one of the most important yet for your
Company in its seven year history. Further data relating to the cause and costs
of climate change have combined with concerns over the durability of
traditional energy supplies to propel the new energy technology sector onto
centre stage. As the role that your Company's holdings play in both supplying
cleaner energy and reducing the overall amount of energy required has become
increasingly evident to governments, companies and investors alike, the share
prices of your Company's holdings have, in aggregate, risen. As a result, the
Company's NAV increased by 51.9% while the ordinary share price rose by 47.6%
over the year ended 31 October 2007. Over the same period, the MSCI World
Developed Markets Index increased by 8.6% (all percentages are in sterling
terms on a capital only basis). These gains have been predominantly driven by
the twin factors of positive government policy and improving operational
progress.
Government Policy
Last year's publication of the UK Treasury's Stern Report on Climate Change has
continued to impact the sector positively in 2007. An acknowledgement that
tackling climate change today is the pro-growth economic strategy, as
identified in the report, has lent economic credence to further investment in
new energy technologies.
One of the most significant events during the year under review occurred in
January 2007 when the Intergovernmental Panel on Climate Change ("IPCC")
published its fourth assessment report on Climate Change. The contents of the
report were signed off by the governments of every UN member nation before
public release. In this fourth report, the IPCC considered the body of
scientific research on climate change and concluded with over 90% certainty
that since 1950 most of the increase in global temperatures is due to rising
greenhouse gas emissions as a result of human activity. Combined with the Stern
Report, this research has given legislators a strong basis on which to draft
further environmental legislation.
The United States
In 2006, the United States held the dual titles of largest global consumer of
energy while also being the largest global emitter of greenhouse gases (Source:
International Energy Agency World Energy Outlook 2006). As such, we have long
viewed the positive development of the US legislative environment as critical
to realising the long-term investment potential of the new energy sector.
Unfortunately, the current Republican administration entered office with a
reluctance to acknowledge climate change or the possible role of new energy
technologies within the broader energy landscape.
Recently, we have witnessed a shift in the positioning of US politicians on
both of these issues. As the prices of traditional energy sources such as oil,
natural gas, coal and uranium have all increased significantly in recent years,
legislators have felt increasing pressure from an electorate concerned about
energy security and affordability. Added to this has been an awakening across
the US to the consequences of climate change and its leading role in increasing
greenhouse gas emissions. This has partly been driven by Al Gore's educational
campaign via his film "An Inconvenient Truth" for which he was awarded the
2007 Nobel Peace Prize, jointly with the IPCC.
In December 2006, within one week of taking Congressional office, the Democrats
extended the renewable energy production tax credit (PTC) for wind, a full year
before it was due to expire, a positive development for many of your Company's
holdings, particularly those developing wind turbines and wind farms.
In April 2007, the Supreme Court ruled in favour of the State of Massachusetts'
long-running case against the Environmental Protection Agency (EPA), declaring
that the EPA's refusal to regulate greenhouse gas emissions is "not in
accordance with law". Meanwhile, California and nine North-Eastern states have
independently committed to reduce greenhouse gas emissions.
Over the summer months, the US House of Representatives and the Senate passed
separate Energy Bills. At the time of writing, these two houses of the US
Congress are in the process of reconciling their differences before sending an
agreed bill to the President to be signed into law. Both bills contain
legislation that would enhance or extend targets and/or tax breaks for new
energy technologies. However, while it appears as if the Republicans and the
Democrats agree on these new targets they are yet to agree on the method by
which they should be funded. The Democrats support a reduction in subsidies to
traditional oil companies in order to finance subsidies for alternative energy;
a position not supported by the Republican President who has the power to veto
any bill presented to him. The result of these discussions will impact the near
term growth rates of many of our holdings. However, as existing tax incentives
run out at the end of 2008, the industry has some room to manoeuvre while these
negotiations continue.
Attention to pricing greenhouse gas emissions in the US is also increasing as
several bills on the topic of CO2 cap-and-trade programmes, similar to those
that operate within Europe, are being debated in the US Congress. The US
already has cap-and-trade programmes covering NOx and SOx emissions. If the
cost of carbon emissions is taken into consideration, wind and nuclear power
become some of the lowest cost sources of electricity generation. This already
appears to be affecting company investment decisions as evidenced by the
numerous coal-fired power stations build programmes that are being cancelled,
with concerns over the price of carbon emissions being listed as one of the
contributory factors.
European Union
In February 2007, the EU agreed to extend their Kyoto commitments to a 20%
reduction in 1990-level greenhouse gas emissions by 2020. As part of this plan,
20% of the region's energy must come from renewable sources, including 10% of
transport fuels to be derived from non-fossil fuels. This roughly doubles the
2010 targets of 12% renewable energy and 5.75% renewable fuels. These plans were
important in the run up to the post Kyoto-2012 UN negotiations in Bali in
December this year. The 20% number gives the conference a firm basis around
which to frame its strategy for 2013-2020. The EU also pledged to expand
its commitment to cut emissions by 30% by 2020 (versus 20%) should
America, China and India join the scheme.
Operational Progress
Renewable Energy
A significant portion of your Company's performance over the last twelve months
has been due to developments in the wind-power industry. First, industry
fundamentals improved even further, as evidenced by market leader Vestas Wind
Systems repeatedly announcing higher than expected sales and boosting their
margin guidance. Secondly, company operations expanded with, for example, the
opening of new factories by companies such as Clipper Windpower. Thirdly, the
paucity of publicly-listed wind turbine manufacturing companies was highlighted
by the takeover battle for control of German turbine manufacturer REpower Systems.
After four bids and counterbids, Indian turbine manufacturer Suzlon Energy won
the bidding war. The fourth factor has been the positive re-rating of
wind-power generating assets. This was triggered by Portuguese utility EDP's
acquisition of Horizon Wind Energy from Goldman Sachs in April for
approximately US$3 billion (including debt and capital commitments). Along with
Iberdrola's takeover of Scottish Power with its PPM wind business in the US,
the Horizon Wind Energy transaction forced the market to reassess its valuation
of wind generating assets and, consequently, of companies' valuations such as
FPL Group, Iberdrola Renovables, Clipper Windpower and Gamesa.
The solar sector also contributed strongly to performance over the year.
Against a backdrop of rampant demand growth and shortages of silicon feedstock
supply, stock selection continued to be crucial. Over the year, a number of
silicon producers announced capacity expansions in an attempt to benefit from
high sales prices. In this environment, some of the best-performing stocks have
been those producing silicon, such as REC in Norway and America's MEMC
Electronics Materials, as well as those solar cell manufacturers that do not
use silicon, such as First Solar in the US. Looking forward, the key question
in the solar market is whether end demand growth is sufficient to meet the
expected ramp-up in cell and module production capacity once the silicon
shortage has eased. Complementing Germany's supportive regime, there are now
encouraging subsidy programmes in Spain, Greece, Italy and the US, but we have
yet to see how the industry responds to the price deflator mechanism in
Germany. In a bid to lower the cost of solar and thus expand its market, the
German government's guaranteed electricity price paid for solar energy
currently declines by 5% each year. However, an ongoing review is expected to
increase this deflator mechanism to between 7% and 9% per annum, challenging
solar companies to cut costs further. The industry plans to achieve lower costs
through lower silicon prices, higher cell efficiencies and generally
streamlining their operations.
Alternative Fuels
With targets in the US and mandated use in several European countries,
government support for biofuels generally remains strong. Unlike wind and solar
power, which produce electricity, biodiesel and bioethanol are substitutes for
diesel and gasoline and appeal to political leaders' desire to reduce
dependency on foreign oil and to promote the rural economy.
Political will and abundant capital are driving growth in capacity, but that has
not necessarily translated into positive investment returns. During the year,
we did observe some end market weakness, particularly in the German biodiesel
and US bioethanol markets.
Biofuels is a commodity business with low barriers to entry: feedstock costs
(corn, palm oil, rapeseed oil etc) and end product prices (which, for the time
being, are intrinsically linked to diesel and gasoline) are notoriously
volatile and do not always move in tandem. An ill-conceived procurement,
distribution or hedging strategy can swiftly move a company from being
profitable to loss-making.
During the year under review, corn prices increased 17% (Source: Chicago Board
of Trade) and palm oil 78% (Source: Malaysian Derivatives Exchange). These
feedstock price increases have not been reflected in the price of bioethanol
or biodiesel, with company profit margins suffering as a result. Consequently,
we are concentrating our investments in those companies that have scale
and/or flexibility in sourcing feedstock as well as those developing
"second generation" biofuels technologies. In addition, we are focusing on
companies that will benefit from the increase in biofuels volumes but are not
exposed to the margin swings, such as enzyme manufacturers, equipment
providers and agricultural product companies.
Automotive and Onsite Power Generation
Among our fuel cell holdings, Medis Technologies achieved Underwriters
Laboratory certification in December 2006 for their portable fuel cell 24/7
Power Pack recharger for mobile phones and PDAs. The company successfully
tested its high volume manufacturing line at the designer's plant in
Switzerland, and subsequently shipped it to their site in Ireland which we
visited in July.
Medis' Irish production was expected to commence at that time and ramp up to
1.5 million units per month by the end of 2007. Unfortunately, the production
ramp up has been slower than planned as the company has needed to redesign the
fuel cell's external power management system to meet the increased demands of
the latest mobile devices.
Shortly after the period under review, the US Department of Transport issued
Medis with a permit authorizing aircraft passengers and aircrew to carry up to
three Medis Power Packs for personal use on board aircraft. This limit means
that they are exempt from the Hazardous Materials Regulations.
Elsewhere, fuel cell companies focusing on the stationary and automotive
markets continue to make slow progress.
Enabling Energy Technologies
Elevated energy prices have continued to drive energy efficiency measures, to
the benefit of companies such as Itron and Esco Technologies which produce
automated meter reading systems that can be linked to demand control programmes
by utilities. Public utilities commissions in several large US states have
begun issuing directives to promote advanced metering and, while utilities have
taken longer to test and order such systems than we had hoped, this does bode
well for longer term sales.
Utilities, particularly in the US, are now beginning to show evidence of
increasing capital expenditure to improve and expand their transmission and
distributions systems. Spending on the US transmission and distribution
infrastructure has fallen far short of growth in demand for almost thirty
years. From 1975 to 2003, real spending on electric distribution grew at 1.6%
per year versus electricity demand at 2.4% per year. After the Californian
blackouts in 2001 and those experienced on the East Coast of Canada and the US
in 2005, we have been watching to see when utilities would respond by
increasing capital expenditure and utilising new energy technologies to improve
the grid system.
It is now becoming clear that the annual spend on the US transmission system
has begun to accelerate, rising from US$4.6 billion in 2004 to $6 billion in
2006. This is forecast to rise to $9.6 billion in 2010 and $15 billion in 2015
(in real 2006 dollars), translating into annual spending growth of between
13.5% and 19% from now to 2015.
While we have been waiting for signs of change in US spending patterns, it is
not just in the US that investment in the electrical infrastructure is
increasing. Between 2005 and 2030, China will install more new electricity
generating capacity than exists in the entire US today. Companies such as
American Superconductor and General Cable are likely to benefit from this
increased global activity. Corporations involved in reducing pollution from
power plants, such as Shaw Group and Headwaters, may also benefit, especially
as the US EPA's Clean Air Interstate Rules call for SOx and NOx emission
reductions of 60% from 2003 levels by 2015.
Unquoted Investments
At the end of the period, the Company had investments in four unquoted
companies:
Homeland Renewable Energy (www.fibrowattusa.com) is a developer of biomass
power projects in the US, using chicken litter as a fuel. The company's first
plant (55MW in size) began producing power on schedule in July and the company
continues to pursue a number of opportunities for additional plants.
Pelamis Wave Power, formerly Ocean Power Delivery, (www.pelamiswave.com) is a
developer of wave power technology set up in 1998 to commercialise the Pelamis
wave energy converter concept. The company is installing full scale devices in
both Portugal and Scotland.
Sunopta Bioprocess (www.sunopta.com/bioprocess/index.aspx) is a second
generation (cellulosic) ethanol producer based in Canada. The Company is a
subsidiary of Sunopta, a well established Canadian food processor using similar
technology to turn lignosic material into cattle feed.
Tantalus Systems (www.tantalus.com) is a Canadian company which develops,
manufactures and markets TUNet�, a two-way, real-time data communication
network for electric, gas and water utilities. It allows the utility to
implement advanced automated meter reading and control and to monitor its
entire distribution network. Utilities using TUNet� benefit from more efficient
operations, more accurate billing and a higher level of customer service.
The Company also has a holding in the equity loan note of Indian wind
manufacturer Suzlon Energy.
The Managers continue to review additional unquoted investments and will add
these to the portfolio if and when they find suitably valued companies at an
advanced stage of development with an acceptable corporate structure.
Outlook
The Company's next year is going to be interesting as the US electorate goes to
the polls to vote for a new President. With historically high energy prices and
an increasing awareness of climate change, energy supplies and the environment
are likely to be important issues in 2008.
We have already seen a perceptible shift in US political positioning. In May
2007 the G8 leaders, including President George Bush, agreed to negotiate a
post 2012 Kyoto type plan under the auspices of the UN, with the goal being to
have an agreement in place by 2009. Importantly, this was supported by the
Group of 5 Countries with the emerging economies of China, India, Brazil,
Mexico and South Africa.
As a result of this agreement, President Bush hosted the first "Major Economies
Meeting on Energy Security and Climate Change" in Washington in September. This
was held to agree the agenda and meeting schedule for the first truly global
agreement (the US did not ratify the current agreement) under the UN Framework
Convention on Climate Change. The meeting included representatives from
seventeen major economies as well as the UN. This is a welcome change to the
practice of nonengagement that has prevailed throughout much of the current US
President's term in office and we will be watching to see what is agreed over
the course of next year.
Hillary Clinton, in the pursuit of the Democratic nomination, announced (while
touring Clipper Windpower's Iowa factory) that were she to become President she
would sign the US up to Kyoto-like legislation. She also pledged to support a
programme aimed at establishing "green collar jobs", similar to those created
throughout Europe, another sign that the US may be on the brink of a policy
change that could be very positive for your Company's holdings.
In its World Energy Outlook 2007, published in November, the International
Energy Agency (IEA) focused on China and India's increasing importance in world
energy demand. In its base-case scenario the IEA predicts world energy demand
to grow by 55% by 2030, with China and India accounting for 45% of this
increase. These projections are based on the IEA's "conservative assumptions
about economic growth" that assumes a marked slow-down in the growth rate of
these countries. In a High Growth Scenario, published for the first time, the
IEA considers the effect of adding 1.5 percentage points of annual GDP growth
onto their conservative assumptions for China and India. In this scenario
global energy use would rise by 64% by 2030, of which China and India would
account for 54% of the increase.
If there is no change to current energy and climate change policies greenhouse
gas emissions will continue to grow. Coal will undoubtedly play an important
role in meeting China and India's energy needs and this will continue to force
the business case for cleaner coal technologies as well as carbon capture and
sequestration. The role of renewable energy in meeting increased energy demand
is also clear, with the IEA forecasting renewable energy to grow globally by
between 405% and 628% by 2030.
Incremental pieces of legislation offer targets that provide the industry with
earnings visibility, while subsidies or tax breaks help to bridge the gap
between price discrepancies today and cost competitiveness in the future. These
strong macro drivers support a bullish stance on this sector. Yet the recent
difficulties experienced in the financial sector, as a result of subprime
mortgage defaults, are a reminder that shares in the New Energy Technology
sector continue to be influenced by external drivers, as well as by favourable
internal ones. Less predictable factors such as development in the broader
equity market, investor risk appetite, and commodity prices will also influence
future performance.
BlackRock Investment Management (UK) Limited
17 December 2007
Ten Largest Investments- 31 October 2007
Vestas Wind Systems (7.8% (2006: 5.1%), Denmark,www.vestas.com) develops and
manufactures wind turbines in the 0.85 to 4.5MW range for both the onshore and
offshore wind markets. In May 2004, Vestas merged with rival wind turbine
manufacturer NEG Micon to create the world's largest wind turbine manufacturer.
Gamesa (6.0% (2006: 4.3%), Spain, www.gamesa.es) manufactures wind turbines in
the 0.85 to 2MW range, develops and manages wind parks and produces components
for the civil aerospace market. While Spain has historically been Gamesa's core
market, the Company has expanded wind turbine sales into other markets such as
the US, Germany and China. Gamesa's headquarters are in Minano in Northern
Spain.
Clipper Windpower (4.7% (2006: 5.1%), US,www.clipperwind.com) has developed and
manufactures a 2.5MW wind turbine, and has a land bank of wind projects in the
US to develop. Clipper has agreed a strategic turbine agreement with BP
Alternative Energy worth more than US$4bn as well as one with Florida Power &
Light worth over US$1 billion. Clipper manufactures its Liberty turbine from
its first manufacturing facility in Iowa. In 2007, Clipper agreed to combine
its renewable energy assets with those of Spanish construction company Hemertik
to form CAPGEN. Clipper has a net ownership of a 6,500MW wind resource
portfolio. The company is dual-domiciled in California and the UK, and its
shares started trading on London's Alternative Investment Market (AIM) in
September 2005.
Solarworld (4.5% (2006: 4.2%), Germany,www.solarworld.de/sw-eng) manufactures
components used in generating solar energy, right the way through from silicon
wafers to the installation and servicing of solar power systems. In 2006, the
company bought the solar power business of Royal Dutch Shell. Solarworld is
headquartered in Bonn, Germany, and has operations in Germany and the US.
Q Cells (4.0% (2006: 3.2%), Germany, www.qcells.de) develops, produces and
sells silicon photo-voltaic solar cells. The company also has a number of
thin-film photo-voltaic investments. Q cells is headquartered in Frankfurt,
Germany.
Suzlon Energy (3.7% (2006: 4.4%), India,www.suzlon.com) is a fully integrated
wind power company which ranks amongst the top five in the world. Suzlon has
wind turbine manufacturing facilities in Belgium, China, India and the USA.
In 2006, Suzlon acquired Hansen Transmission, a manufacturer of wind gearboxes.
In 2007, Suzlon acquired REpower the maker of the largest commercially
deployed wind turbine (5MW). Suzlon's products are sold globally
as well as in the Indian market. Suzlon's management headquarters are in
Amsterdam and its corporate headquarters in Pune, India.
Itron (3.6% (2006: 4.3%), US, www.itron.com) is a leading provider of
technology for creating, collecting, analysing and applying critical data about
electricity, gas and water usage. Headquartered in Spokane, Washington, Itron
has developed automatic meter reading units and metering data management
software to help customers manage their energy bills accurately and
efficiently. In 2007, Itron acquired Actaris a provider of electric, gas and
water meters worldwide.
FPL Group(3.2% (2006: n/a), US,www.fplgroup.com) serves more than 4.3 million
customers in Florida through its principal subsidiary, Florida Power & Light, a
regulated public utility. FPL's wholesale generating subsidiary, FPL Energy, is
active in 24 states and is a leader in generating electricity from cleaner and
renewable sources. It is the largest developer, owner and operator of
wind-powered generating plants in the United States.
American Superconducter (3.2% (2006: 2.7%), US, www.amsuper.com) conducts
business through two units. AMSC Superconductors is the industry leader in the
manufacture of proprietary high temperature superconductor (HTS) wires for the
utility and industrial market. Today, HTS wires conduct over 150 times the
electrical current of copper wires, increasing the power throughput of power
cables and dramatically reducing the size and weight of electrical equipment.
AMSC Power Systems's D-VAR� and PowerModule(tm) systems enable wind farm operators
to regulate the voltage and optimize the output of their wind turbines. Through
its acquisition of Windtec in January 2007, the company also provides
customer-specific development of wind turbines.
Climate Exchange (2.7% (2006: 3.1%), UK,www.climateexchangeplc.com) owns the
European Climate Exchange (ECX) and the Chicago Climate Exchange (CCX). The ECX
is the most liquid, pan-European platform for carbon emissions trading. The CCX
is the first and only greenhouse gas emission registry and trading system in
North America.
Sector and Geographical Allocations
Sector Allocation as at 31 October
% of net assets
2007 2006
Renewable Energy 55.8 52.7
Enabling Energy Technology 14.5 9.2
Alternative Fuels 13.4 13.1
Materials Technology 5.4 7.1
Automotive and On-Site Power Generation 3.4 12.2
Energy Storage 0.9 1.7
Fixed Interest(1) 7.5 -
Cash and net current liabilities (0.9) 4.0
----- -----
100.0 100.0
===== =====
Geographical Allocation as at 31 October
% of net assets
2007 2006
United States 33.9 41.1
Spain 10.8 5.4
Germany 10.4 11.9
Denmark 8.6 5.3
United Kingdom 7.9 10.0
Canada 5.9 9.9
India 3.7 4.2
Norway 3.0 1.1
South Africa 2.5 1.9
China 2.1 1.9
France 1.9 1.1
Ireland 1.4 -
Belgium 1.3 0.8
Australia - 1.4
United Kingdom (fixed interest)(1) 7.5 -
Cash and net current liabilities (0.9) 4.0
----- -----
100.0 100.0
===== =====
(1) The Manager may from time to time hold fixed income securities as an
alternative to holding cash.
Investments
31 October 2007
Investment Country Market value %
�'000 of net assets
Renewable Energy
Vestas Wind Systems Denmark 13,543 7.8
Gamesa (Gpo Auxiliar Metalurgico) Spain 10,273 6.0
Clipper Windpower* USA 8,075 4.7
Solarworld Germany 7,768 4.5
Q-Cells Germany 6,976 4.0
UBS Suzlon Energy (equity linked
note)** India 6,420 3.7
FPL Group USA 5,598 3.2
Iberdrola Spain 4,488 2.6
Sunpower Holdings USA 3,832 2.2
Renewable Energy* Norway 3,658 2.1
MEMC Electronics Materials USA 2,814 1.6
Suntech Power China 2,433 1.4
Ormat Technologies USA 2,289 1.3
Acciona Spain 2,225 1.3
First Solar USA 2,062 1.2
S�chilienne-Sedec France 1,725 1.0
Canadian Hydro Developers Canada 1,701 1.0
Nordex Germany 1,625 0.9
Theolia France 1,524 0.9
Novera Energy* UK 933 0.6
Energy Conversion Devices USA 891 0.5
Solar Integrated Technologies* USA 801 0.5
Covanta USA 781 0.5
Wacker Chemie Germany 713 0.4
REpower Systems Germany 705 0.4
Homeland Renewable Energy** USA 586 0.3
Western Geopower Canada 488 0.3
Ocean Power Technologies UK 318 0.2
Renesola* UK 317 0.2
Conergy Germany 180 0.1
Polaris Geothermal Canada 160 0.1
Plambeck Neue Energie Germany 142 0.1
Carmanah Technologies Canada 137 0.1
Pelamis Wave Power** UK 100 0.1
------ ----
96,281 55.8
------ ----
Enabling Energy Technology
Itron USA 6,271 3.6
American Superconductor USA 5,560 3.2
Climate Exchange* UK 4,615 2.7
Shaw USA 2,509 1.5
Kingspan Ireland 2,343 1.4
Xantrex Canada 908 0.5
Quanta Services USA 792 0.4
Esco Technologies USA 596 0.3
Tantalus Systems** Canada 497 0.3
Trading Emissions* UK 383 0.2
Satcon Technology USA 296 0.2
Camco International* UK 166 0.1
Questair Technologies* Canada 135 0.1
China High Speed China 24 0.0
------ ----
25,095 14.5
------ ----
Alternative Fuels
Sasol South Africa 4,396 2.5
Potash Canada 3,547 2.1
Archer Daniels Midland USA 3,269 1.9
D1 Oils* UK 1,628 0.9
Abengoa Spain 1,572 0.9
Verasun Energy USA 1,506 0.9
Novozymes Denmark 1,410 0.8
China Agri-Industries China 1,055 0.6
Rentech USA 1,025 0.6
Sunopta Bioprocess** USA 963 0.6
Monsanto USA 940 0.5
Infinity Bio-Energy* UK 683 0.4
Aventine Renewable Energy USA 377 0.2
Sunopta Canada 276 0.2
Headwaters USA 275 0.2
China Biodiesel* China 111 0.1
Renova Energy* UK 76 0.0
Syntroleum USA 67 0.0
------ ----
23,176 13.4
------ ----
Materials Technology
General Cable USA 3,103 1.8
Johnson Matthey UK 2,321 1.3
Umicore Belgium 2,274 1.3
Orkla Norway 1,420 0.9
Polyfuel* UK 160 0.1
----- ---
9,278 5.4
----- ---
Automotive & On-Site Power Generation
Medis Technologies USA 2,169 1.3
Azure Dynamics* Canada 905 0.5
Ceres Power* UK 851 0.5
Ceramic Fuel Cells* UK 715 0.4
Plug Power USA 621 0.3
Ballard Power Systems Canada 550 0.3
ITM Power* UK 96 0.1
CMR Fuel Cells UK 43 0.0
----- ---
5,950 3.4
----- ---
Energy Storage
Fuel Systems Solutions USA 720 0.4
Dynetek Industries Canada 640 0.4
Freeplay Energy* UK 112 0.1
----- ---
1,472 0.9
----- ---
Fixed Interest
UK Treasury 5% 07/03/08 UK 12,940 7.5
------ ---
12,940 7.5
------ ---
Total investments 174,192 100.9
------- -----
Cash and other net current
liabilities (1,545) (0.9)
Net assets 172,647 100.0
======= =====
*Quoted on AIM.
**Unquoted investment, at Directors' valuation
All investments are in equity shares unless otherwise stated.
The number of investments held at 31 October 2007 was 81 (31 October 2006: 69).
For further information, please contact:
Jonathan Ruck Keene, Managing Director, Investment Trusts, BlackRock Investment
Management (UK) Limited - Tel: 020 7743 2178
Robin Batchelor, Natural Resources Team, BlackRock Investment Management (UK)
Limited - Tel: 020 7743 2618
Nigel Webb, Public Relations, BlackRock Investment Management (UK) Limited -
Tel: 020 7743 5938
William Clutterbuck, The Maitland Consultancy - Tel: 020 7379 5151
CONSOLIDATED INCOME STATEMENT
for the year ended 31 October 2007
Revenue Revenue
return return
2007 2006
Notes �'000 �'000
Income from investments held at fair value
through profit or loss 3 791 211
Other income 3 123 95
------ ------
Total revenue 914 306
------ ------
Gains on investments held at fair value
through profit or loss - -
------ ------
914 306
------ ------
Expenses
Investment Management fees 4 (1,599) (1,101)
Other expenses 5 (399) (355)
------ ------
Total operating expenses (1,998) (1,456)
------ ------
Loss before finance costs and taxation (1,084) (1,150)
------ ------
Finance costs (41) (54)
------ ------
Loss before taxation (1,125) (1,204)
------ ------
Taxation (57) (18)
------ ------
Loss for the year (1,182) (1,222)
====== ======
Return per ordinary share 7 (0.51p) (0.59p)
====== ======
The "Total" column of this statement represents the Group's Income Statement,
prepared in accordance with International Financial Reporting Standards
("IFRS"). The supplementary revenue and capital return columns are both
prepared under guidance published by the Association of Investment Companies
("AIC"). All items in the above statement derive from continuing operations. No
operations were acquired or discontinued during the year. All income is
attributable to the equity holders of Merrill Lynch New Energy Technology plc.
There are no minority interests.
CONSOLIDATED INCOME STATEMENT
for the year ended 31 October 2007 continued
Capital Capital
return return
2007 2006
Notes �'000 �'000
Income from investments held at fair value
through profit or loss 3 - -
Other income 3 - -
------ ------
Total revenue - -
------ ------
Gains on investments held at fair value
through profit or loss 59,790 19,574
------ ------
59,790 19,574
------ ------
Expenses
Investment Management fees 4 (2,629) -
Other expenses 5 - -
------ ------
Total operating expenses (2,629) -
------ ------
Profit before finance costs taxation 57,161 19,574
------ ------
Finance costs - -
------ ------
Profit before taxation 57,161 19,574
------ ------
Taxation - -
------ ------
Profit for the year 57,161 19,574
====== ======
Return per ordinary share 7 24.83p 9.57p
====== ======
The "Total" column of this statement represents the Group's Income Statement,
prepared in accordance with International Financial Reporting Standards
("IFRS"). The supplementary revenue and capital return columns are both
prepared under guidance published by the Association of Investment Companies
("AIC") All items in the above statement derive from continuing operations. No
operations were acquired or discontinued during the year. All income is
attributable to the equity holders of Merrill Lynch New Energy Technology plc.
There are no minority interests.
CONSOLIDATED INCOME STATEMENT
for the year ended 31 October 2007 continued
Total Total
2007 2006
Notes �'000 �'000
Income from investments held at fair value
through profit or loss 3 791 211
Other income 3 123 95
------ ------
Total revenue 914 306
------ ------
Gains on investments held at fair value
through profit or loss 59,790 19,574
------ ------
60,704 19,880
------ ------
Expenses
Investment Management fees 4 (4,228) (1,101)
Other expenses 5 (399) (355)
------ ------
Total operating expenses (4,627) (1,456)
------ ------
Profit before finance costs and taxation 56,077 18,424
------ ------
Finance costs (41) (54)
------ ------
Profit before taxation 56,036 18,370
------ ------
Taxation (57) (18)
------ ------
Profit for the year 55,979 18,352
====== ======
Return per ordinary share 7 24.32p 8.98p
====== ======
The "Total" column of this statement represents the Group's Income Statement,
prepared in accordance with International Financial Reporting Standards
("IFRS"). The supplementary revenue and capital return columns are both
prepared under guidance published by the Association of Investment Companies
("AIC"). All items in the above statement derive from continuing operations. No
operations were acquired or discontinued during the year. All income is
attributable to the equity holders of Merrill Lynch New Energy Technology plc.
There are no minority interests.
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 October 2007
Ordinary Share Capital Capital Capital
share premium Special Redemption reserve - reserve - Revenue
capital account reserve reserve realised unrealised reserve Total
�'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000
Group
For year ended
31 October 2007
At 31 October 2006 10,607 6,227 181,347 53 (104,491) 11,091 (4,798) 100,036
Net profit/(loss)
for the year - - - - 15,695 41,466 (1,182) 55,979
Shares issued 1,443 15,296 - - - - - 16,739
Share issue costs - (107) - - - - - (107)
------ ------ ------- --- ------- ------ ------ -------
At 31 October 2007 12,050 21,416 181,347 53 (88,796) 52,557 (5,980) 172,647
------ ------ ------- --- ------- ------ ------ -------
For year ended
31 October 2006
At 31 October 2005 9,947 - 181,347 53 (88,072) (24,902) (3,576) 74,797
Net (loss)/profit
for the year - - - - (16,419) 35,993 (1,222) 18,352
Shares issued 660 6,227 - - - - - 6,887
------ ----- ------- --- -------- ------ ------ -------
At 31 October 2006 10,607 6,227 181,347 53 (104,491) 11,091 (4,798) 100,036
------ ----- ------- --- -------- ------ ------ -------
Company
For year ended
31 October 2007
At 31 October 2006 10,607 6,227 181,347 53 (104,491) 11,215 (4,922) 100,036
Net profit/(loss) - - - - 15,695 41,479 (1,195) 55,979
for the year
Shares issued 1,443 15,296 - - - - - 16,739
Share issue costs - (107) - - - - - (107)
------ ------ ------- --- ------- ------ ------ -------
At 31 October 2007 12,050 21,416 181,347 53 (88,796) 52,694 (6,117) 172,647
------ ------ ------- --- ------- ------ ----- -------
For year ended
31 October 2006
At 31 October 2005 9,947 - 181,347 53 (88,072) (24,833) (3,645) 74,797
Net (loss)/profit
for the year - - - - (16,419) 36,048 (1,277) 18,352
Shares issued 660 6,227 - - - - - 6,887
------ ----- ------- --- -------- ------ ------ -------
At 31 October 2006 10,607 6,227 181,347 53 (104,491) 11,215 (4,922) 100,036
------ ----- ------- --- -------- ------ ------ -------
GROUP BALANCE SHEET
as at 31 October 2007
2007 2006
Notes �'000 �'000
Non-current assets
Investments held at fair value through
profit or loss 174,192 97,757
------- -------
Current assets
Other receivables 1,317 515
Cash and cash equivalents 2,295 3,591
------- -------
3,612 4,106
------- -------
Total assets 177,804 101,863
------- -------
Current liabilities
Other payables (3,889) (1,189)
Bank overdrafts (1,268) (638)
------- -------
(5,157) (1,827)
------- -------
Net assets 172,647 100,036
======= =======
Equity attributable to equity holders
Ordinary share capital 8 12,050 10,607
Share premium account 21,416 6,227
Special reserve 181,347 181,347
Capital redemption reserve 53 53
Retained Earnings:
Capital reserve - realised (88,796) (104,491)
Capital reserve - unrealised 52,557 11,091
Revenue reserve (5,980) (4,798)
------- -------
Total equity 172,647 100,036
======= =======
Net asset value per ordinary share 7 71.64p 47.15p
======= =======
COMPANY BALANCE SHEET
as at 31 October 2007
2007 2006
Notes �'000 �'000
Non-current assets
Investments held at fair value through
profit or loss 174,329 97,881
------- -------
Current assets
Other receivables 1,332 530
Cash and cash equivalents 2,143 3,452
------- -------
3,475 3,982
------- -------
Total assets 177,804 101,863
------- -------
Current liabilities
Other payables (3,889) (1,189)
Bank overdrafts (1,268) (638)
------- -------
(5,157) (1,827)
------- -------
Net assets 172,647 100,036
======= =======
Equity attributable to equity holders
Ordinary share capital 8 12,050 10,607
Share premium account 21,416 6,227
Special reserve 181,347 181,347
Capital redemption reserve 53 53
Retained Earnings:
Capital reserve - realised (88,796) (104,491)
Capital reserve - unrealised 52,694 11,215
Revenue reserve (6,117) (4,922)
------- -------
Total equity 172,647 100,036
======= =======
Net asset value per ordinary share 7 71.64p 47.15p
======= =======
GROUP CASH FLOW STATEMENT
for the year ended 31 October 2007
2007 2006
�'000 �'000
Operating activities
Profit before taxation 56,036 18,370
Add back interest paid 41 71
Gains on investments held at fair value through
profit or loss including transaction costs (59,790) (19,574)
Net sales of investments by subsidiary 7 50
Increase in other receivables (45) (46)
Increase in other payables 2,744 120
Increase in sales settlement debtor (670) (388)
(Decrease)/increase in purchase settlement
creditor (44) 722
Net purchases of investments held at fair value
through profit or loss (16,502) (761)
Dealing profits (7) (50)
------- ------
Net cash outflow from operating activities
before interest and taxation (18,230) (1,486)
------- ------
Interest paid (41) (71)
Taxation recovered 8 3
Taxation on investment income included within
gross income (152) (24)
------- ------
Net cash outflow from operating activities (18,415) (1,578)
------- ------
Financing activities
Shares issued 16,739 6,887
Issue costs paid (107) -
------ -----
Net cash inflow from financing activities 16,632 6,887
------ -----
(Decrease)/increase in cash and cash
equivalents (1,783) 5,309
Cash and cash equivalents/(bank overdrafts) at
start of year 2,953 (2,282)
Effect of foreign exchange rate changes (143) (74)
----- -----
Cash and cash equivalents at end of the year 1,027 2,953
===== =====
Comprised of:
Cash at bank 2,295 3,591
Bank overdrafts (1,268) (638)
------ -----
Total 1,027 2,953
===== =====
COMPANY CASH FLOW STATEMENT
for the year ended 31 October 2007
2007 2006
�'000 �'000
Operating activities
Profit before taxation 56,036 18,370
Add back interest paid 41 71
Gains on investments held at fair value through
profit or loss including transaction costs (59,803) (19,629)
Net sales of investments by subsidiary - -
Increase in other receivables (45) (45)
Increase in other payables 2,744 120
Increase in sales settlement debtor (670) (388)
(Decrease)/increase in purchase settlement
creditor (44) 722
Net purchases of investments held at fair value
through profit or loss (16,502) (761)
Dealing profits - -
------- ------
Net cash outflow from operating activities
before interest and taxation (18,243) (1,540)
------- ------
Interest paid (41) (71)
Taxation recovered 8 3
Taxation on investment income included within
gross income (152) (24)
------- ------
Net cash outflow from operating activities (18,428) (1,632)
------- ------
Financing activities
Shares issued 16,739 6,887
Issue costs paid (107) -
------- -----
Net cash inflow from financing activities 16,632 6,887
------ -----
(Decrease)/increase in cash and cash
equivalents (1,796) 5,255
Cash and cash equivalents/(bank overdrafts) at
start of year 2,814 (2,367)
Effect of foreign exchange rate changes (143) (74)
------ -----
Cash and cash equivalents at end of the year 875 2,814
===== =====
Comprised of:
Cash at bank 2,143 3,452
Bank overdrafts (1,268) (638)
------ -----
Total 875 2,814
===== =====
NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2007
1. Principal activity
The principal activity of the Company is that of an investment trust
company within the meaning of section 842 of the Income and Corporation
Taxes Act 1988.
The principal activity of the subsidiary undertaking, New Energy
Technology Investment Company Limited, is investment dealing.
2. Accounting policies
The principal accounting policies adopted by the Group and the Company
are set out below.
(a) Basis of preparation
The Group and Parent Company financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as
adopted by the European Union and as applied in accordance with the
provisions of the Companies Act 1985. The Company has taken advantage of
the exemption provided under section 230 of the Companies Act 1985 not to
publish its individual income statement and related notes.
The Group's financial statements are presented in sterling, which is the
currency of the primary economic environment in which the Group operates.
All values are rounded to the nearest thousand pounds (�'000) except when
otherwise indicated.
Insofar as the Statement of Recommended Practice ("SORP") for investment
trusts issued by the Association of Investment Companies ("AIC"), revised
in December 2005, is compatible with IFRS, the financial statements have
been prepared in accordance with guidance set out in the SORP.
(b) Basis of consolidation
The Group financial statements consolidate the financial statements of
the Company and its wholly-owned subsidiary, New Energy Technology
Investment Company Limited.
(c) Presentation of the consolidated income statement
In order to reflect better the activities of an investment trust company
and in accordance with guidance issued by the AIC, supplementary
information which analyses the Consolidated Income Statement between
items of a revenue and a capital nature has been presented alongside the
Consolidated Income Statement. In accordance with the Company's status as
a UK investment company under section 266 of the Companies Act 1985, net
capital returns may not be distributed by way of dividend.
(d) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single
segment of business, being investment business.
(e) Income
Dividends receivable on equity shares are treated as revenue for the year
on an ex-dividend basis. Where no ex-dividend date is available dividends
receivable on or before the year end are treated as revenue for the year.
Provision is made for any dividends not expected to be received. Interest
income and expenses are accounted for on an accruals basis. Premia on
options written are recognised as income.
(f) Expenses
All expenses, including finance costs, are accounted for on an accruals
basis. Expenses have been treated as revenue except as follows:
- expenses which are incidental to the acquisition of an investment are
included within the cost of the investment.
- expenses are treated as capital where a connection with the maintenance
or enhancement of the value of the investments can be demonstrated.
- performance fees are paid out of capital.
(g) Taxation
Deferred tax is recognised in respect of all temporary differences that
have originated but not reversed at the balance sheet date, where
transactions or events that result in an obligation to pay more tax in
the future or right to pay less tax in the future have occurred at the
balance sheet date. This is subject to deferred tax assets only being
recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the temporary
differences can be deducted. Deferred tax assets and liabilities are
measured at the rates applicable to the legal jurisdictions in which they
arise.
(h) Investments designated as held at fair value through profit or loss
All investments are designated upon initial recognition as held at fair
value through profit or loss. Purchases of investments are recognised on
a trade date basis. The sales of assets are recognised at the trade date
of the disposal. Proceeds will be measured at fair value, which will be
regarded as the proceeds of sale.
The fair value of the financial instruments is based on their quoted bid
price at the balance sheet date, without deduction for any estimated
future selling costs. Unquoted investments are valued by the Directors at
fair value using International Private Equity and Venture Capital
Association Guidelines. This policy applies to all current and
non-current asset investments held by the Group.
Changes in the fair value of investments held at fair value through
profit and/or loss and gains and losses on disposal are recognised in the
Consolidated Income Statement as "Gains or losses on investments held at
fair value through profit or loss". Also included within this heading are
transaction costs in relation to the purchase or sale of investments.
(i) Other receivables and payables
Other receivables and other payables do not carry any interest and are
short term in nature and are accordingly stated at their nominal value.
(j) Foreign currency translation
Transactions involving foreign currencies are converted at the rate
ruling at the date of the transaction. Foreign currency monetary assets
and liabilities are translated into sterling at the rate ruling on the
balance sheet date. Foreign exchange differences arising on translation
are recognised in the Consolidated Income Statement.
(k) Cash and cash equivalents
Cash comprises cash in hand and demand deposits. Cash equivalents are
short-term, highly liquid investments that are readily convertible to
known amounts of cash and that are subject to an insignificant risk of
changes in value.
(l) Bank borrowings
Bank overdrafts are recorded as the proceeds received, net of direct
issue costs. Finance charges, including any premiums payable on
settlement or redemption and direct issue costs, are accounted for on an
accruals basis in the Consolidated Income Statement using the effective
interest rate method and are added to the carrying amount of the
instruments to the extent that they are not settled in the period in
which they arise.
3. Income
2007 2006
�'000 �'000
Investment Income:
Overseas listed dividends 581 210
Fixed interest income 178 -
UK listed dividends 32 1
--- ---
791 211
--- ---
Other income:
Deposit interest 116 45
Dealing profits 7 50
--- ---
123 95
--- ---
Total income 914 306
=== ===
Dealing profits are presented after deducting transaction costs incurred
on the purchase and sale of investments.
4. Management fees and performance fee
2007 2006
�'000 �'000
Investment management fees 1,486 1,040
VAT 113 61
----- -----
1,599 1,101
Performance fee 2,629 -
----- -----
Total 4,228 1,101
===== =====
The investment management fee is levied quarterly, based on the gross assets on
the last day of each quarter, and is charged wholly to the revenue account.
A performance fee of �2,629,000 is payable based on the increase in the
Company's net assets above a threshold of either 10% per annum or the MSCI
World Developed Markets Index (capital return in sterling) whichever of the two
is higher. The performance fee is capped at 1.5% of net assets at the year-end
and is charged wholly to capital.
5. Other expenses
2007 2006
�'000 �'000
Custody fee 17 12
Administration fee 117 113
Auditors' remuneration:
- audit services 21 15
- non audit services* 4 16
Directors' emoluments 80 63
Registrar's fee 14 16
Other administrative costs 146 120
--- ---
399 355
=== ===
The Company's total expense ratio,
calculated as a percentage of average net
assets and using expenses, excluding
performance fee and interest costs, after
relief for taxation was: 1.5% 1.7%
==== ====
* Non audit services relate to the review of the interim financial statements.
6. Dividends
Under IFRS, final dividends are not recognised as a liability until approved by
shareholders. They are also debited directly to reserves. No dividends were
paid during the year (2006: nil). The Directors do not recommend the payment of
a final dividend.
7. Consolidated return and net asset value per ordinary share
Total revenue and capital returns per share are shown below and have been
calculated using the following:
2007 2006
Net revenue return attributable to ordinary
shareholders (�'000) (1,182) (1,222)
Net capital return attributable to ordinary
shareholders (�'000) 57,161 19,574
------- -------
Total earnings attributable to ordinary shares
(�'000) 55,979 18,352
======= =======
Equity shareholders funds (�'000) 172,647 100,036
======= =======
The weighted average number of ordinary shares
in issue during each year, on which the return
per ordinary share was calculated, was: 230,130,000 204,445,205
The actual number of ordinary shares in issue
at the end of the year, on which the net asset
value was calculated, was: 241,000,000 212,150,000
Revenue return per share (0.51p) (0.59p)
Capital return per share 24.83p 9.57p
Total return per share 24.32p 8.98p
Net asset value per share 71.64p 47.15p
Share price 69.00p 46.75p
8. Share capital
2007 2006
Number �'000 Number �'000
Authorised share capital
comprised:
Ordinary shares of 5p each 300,000,000 15,000 300,000,000 15,000
Allotted, issued and fully
paid:
Ordinary shares of 5p each 241,000,000 12,050 212,150,000 10,607
During the year, 28,850,000 shares were issued at an average premium of
2.1% per share. This resulted in the issue of 28,850,000 ordinary shares
for a total consideration of �16,632,000 (net of issue costs) in order to
meet demand from existing shareholders and new investors.
9. Publication of non statutory accounts
The financial information contained in this announcement does not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
The annual report and financial statements for the year ended 31 October 2007
will be filed with the Registrar of Companies in due course.
The figures set out above have been reported upon by the auditors, whose report
for the year ended 31 October 2007 contains no qualification or statement under
section 237(2) or (3) of the Companies Act 1985.
The comparative figures are extracts from the audited financial statements of
Merrill Lynch New Energy Technology plc and its subsidiary for the year ended
31 October 2006, which have been filed with the Registrar of Companies. The
report of the auditors on those accounts contained no qualification or
statement under section 237 of the Companies Act.
10. Annual Report
Copies of the annual report will be sent to members by no later than
9 January 2008 and will be available from the registered office,
c/o The Company Secretary, Merrill Lynch New Energy Technology plc,
33 King William Street, London EC4R 9AS. This report will also be
available on the BlackRock Investment Management's website at
www.blackrock.com.uk/its.
11. Annual General Meeting
The Annual General Meeting of the Company will be held at 33 King William
Street, London EC4R 9AS on Wednesday, 6 February 2008 at 12 noon.
17 December 2007
33 King William Street
London EC4R 9AS
END
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