Interim Results
17 Febrero 2003 - 12:15PM
UK Regulatory
RNS Number:6107H
Jupiter Primadona Growth Trust PLC
17 February 2003
Jupiter Primadona Growth Trust PLC Stock Exchange Announcement
Preliminary announcement of unaudited results for the half year to 31st December
2002
CHAIRMAN'S STATEMENT
Your Company's net asset value per share decreased by 19.1% over the six months
to 31st December 2002 including the impact of share repurchases on the Company's
capital. This compares with a decline of 17.1% for the FTSE World Index and
16.3% for the FTSE All Share Index over the same period.
Revenue of #137,000 before taxation was recorded for the half year compared with
a loss of #87,000 for the corresponding period last year. Your directors are
recommending an interim dividend of 3p net per Ordinary share to be paid to
shareholders on 14th March 2003.
During the second half of 2002 markets continued the negative trend seen over
the last few years, punctuated only by a brief rally in October/November. It
was a particularly poor period for small and medium sized companies, which
underperformed the larger company FTSE 100. This divergence is partly reflected
in the underperformance of your Company's assets against the FTSE All Share
index. The costs of restructuring the portfolio sustained in selling off
smaller, illiquid assets has also been borne during this period. In addition,
your Company has had to write down the value of some of its unquoted
investments, again with damaging effects on performance. It is to be noted that
further write downs of unquoted stocks were carried out after the half year end.
These have now been reflected in the Company's net asset value which stood at
427.57p at 10th February 2003. It is the investment manager's belief that a
migration into more tradable companies will bring benefits in terms of
performance and liquidity.
Overseas markets were weak, with Europe falling over 20% in local currency terms
and Japan by 17%. The US and Asian markets fared better on a relative basis. A
notable theme was a decline in the US dollar, in part linked to an aggressive
interest rate reduction strategy by the Federal Reserve. Sterling's strength
against most currencies further reduced returns in local currency. Against a
backdrop of disappointing returns, absence of yield support and lack of momentum
in structural finance and economic reform, the holding in Japan was reduced.
Your Company remains committed to its stock picking approach in the US and
Europe, by backing successful managers with strong track records. The two hedge
funds, the Jupiter Hyde Park Hedge Fund and Jupiter Europa Hedge Fund, proved
defensive and resilient.
In order to counter the weak markets and provide an underpinning to shareholder
value, your Company continued with its share buy back programme. Some 345,000
Ordinary shares were bought back in the period. A further initiative to improve
returns on the trading subsidiary account has been the introduction of a short
facility. The short facility in place will enable the investment manager to
have greater flexibility. Long or 'owned' positions can be balanced against
short positions, where the investment manager can sell short expensive and
overvalued companies. Strict limits have been set to overall exposures and to
date the results have been positive. The board believes that the prudent
application of this facility will enhance the returns profile from your
Company's subsidiary, whilst controlling risk.
Your Company continues to buy undervalued growth situations. Areas for fresh
investment have included Lloyds underwriters (Cox and Goshawk) which are
benefiting from a powerful upturn in insurance rates; insurance broking (T.H.B)
capitalising on similar insurance pricing trends; beneficiaries of increased
government infrastructure spending (Costain), and well managed discount
retailers (Freeport, Matalan). Blended in with these undervalued stocks have
been a number of high quality growth stocks such as BskyB, Sage and Standard
Chartered, which should benefit as the global economy recovers.
In the short term, the outlook for markets remains difficult. Many of the
themes which have driven equities lower over the last few years remain in place.
These factors include overvaluation of certain sectors, lack of corporate
pricing power and cash flow pressures. In addition uncertainty over terrorism
and war in Iraq is likely to weigh upon investor sentiment. However your board
believes that your Company is well positioned for the future. Restructuring of
the portfolio has continued, with a greater emphasis on liquidity and quality of
investment. The manager is continuing to invest in undervalued growth areas of
the market, whilst maintaining a balance of blue chip stocks. Initiatives such
as the subsidiary company re-organisation and the share buy-back programme have
underpinned the board's commitment to shareholder value. As such, the board
remains confident that your Company can flourish in what remain challenging
conditions.
C C Surtees
Chairman
17th February 2003
CONSOLIDATED STATEMENT OF TOTAL RETURN
(incorporating the Revenue Account)
for the six months to 31st December 2002
(Unaudited)
2002 2001
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
CAPITAL LOSS ON INVESTMENTS
Net realised loss - (2,997) (2,997) - (831) (831)
Movement on unrealised appreciation
of fixed asset investments - (4,415) (4,415) - (14,372) (14,372)
_______ _______ ______ _______ _______ ______
TOTAL CAPITAL LOSSES ON (7,412) (7,412) (15,203) (15,203)
INVESTMENTS - -
Income from fixed asset investments 354 - 354 247 - 247
Other income 15 - 15 36 - 36
Loss on dealings by subsidiary (30) - (30) (178) - (178)
_______ _______ ______ _______ _______ ______
GROSS REVENUE AND CAPITAL LOSSES 339 (7,412) (7,073) 105 (15,203) (15,098)
Investment management fee (incl VAT) (82) (82) (164) (99) (100) (199)
Other administrative expenses (94) (72) (166) (66) (76) (142)
_______ _______ _______ _______ _______ _______
RETURN ON ORDINARY ACTIVITIES
BEFORE FINANCE COSTS AND TAXATION 163 (7,566) (7,403) (60) (15,379) (15,439)
Interest payable (26) (25) (51) (27) (26) (53)
_______ _______ ______ _______ _______ ______
RETURN ON ORDINARY ACTIVITIES
BEFORE TAXATION 137 (7,591) (7,454) (87) (15,405) (15,492)
Tax on ordinary activities - - - (1) 7 6
_______ _______ _______ _______ _______ _______
RETURN ON ORDINARY ACTIVITIES
AFTER TAXATION 137 (7,591) (7,454) (88) (15,398) (15,486)
Dividends (186) - (186) (212) - (212)
_______ _______ ______ _______ _______ ______
TRANSFER FROM RESERVES (49) (7,591) (7,640) (300) (15,398) (15,698)
===== ====== ====== ====== ====== ======
RETURN PER ORDINARY SHARE (2.1)p (114.9)p (112.8)p (1.2)p (217.3)p (218.5)p
CONSOLIDATED BALANCE SHEET
31st December 30th June
2002 2002
(Unaudited) (Audited)
#'000 #'000
FIXED ASSET INVESTMENTS
Listed on the UK stock exchange 27,086 30,100
Listed on overseas exchanges 698 2,265
Unlisted 4,087 3,389
_______ ________
31,871 35,754
CURRENT ASSETS
Investments 206 181
Debtors 75 435
Cash at bank 3,158 4,464
3,439 5,080
CREDITORS: amounts falling due within
one year
(4,948) (1,314)
_______ ________
NET CURRENT (LIABILITIES)/ASSETS (1,509) 3,766
_______ _______
TOTAL ASSETS LESS CURRENT
LIABILITIES 30,362 39,520
====== ======
CAPITAL AND RESERVES
Called up share capital 1,618 1,705
Share premium 23,600 24,861
Capital redemption reserve 2,433 1,085
Capital reserve - realised 15,037 19,731
Capital reserve - unrealised (12,933) (8,518)
Revenue reserve 607 656
_________ ________
SHAREHOLDERS' FUNDS 30,362 39,520
======== =======
NET ASSET VALUE PER ORDINARY SHARE 469p 580p
===== =====
CONSOLIDATED CASHFLOW STATEMENT
for the six months to 31st December 2002
(Unaudited)
2002 2001
#'000 #'000
OPERATING ACTIVITIES
Net cash inflow/(outflow) from operating activities 128 (171)
________ ________
SERVICING OF FINANCE
Interest paid (22) (53)
________ ________
TAXATION
Tax received - 17
________ ________
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of fixed asset investments (19,417) (15,515)
Sale of fixed asset investments 15,755 18,318
________ ________
Net cash (outflow)/inflow from capital expenditure and
financial investment
(3,662) 2,803
________ ________
EQUITY DIVIDENDS PAID (329) (355)
________ ________
Net cash (outflow)/inflow before financing (3,885) 2,241
________ ________
FINANCING
Cost of share repurchase (1,518) (162)
Loan received 3,200 _______-
Net cash inflow/(outflow) from financing 1,682 (162)
________ ________
(Decrease)/ Increase in cash in the period (2,203) 2,079
======= =======
The interim report will shortly be sent to all registered shareholders and
copies may be obtained from the registered office of the Company at 1 Grosvenor
Place, London SW1X 7JJ
BY ORDER OF THE BOARD
JUPITER ASSET MANAGEMENT LIMITED
SECRETARIES
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