Interim Results
28 Abril 2003 - 11:27AM
UK Regulatory
GARTMORE EUROPEAN INVESTMENT TRUST p.l.c.
ANNOUNCEMENT OF RESULTS
FOR THE SIX MONTHS TO 31ST MARCH 2003
The Directors announce the Company's unaudited results for the six months to
31st March 2003 as follows:-
FEATURES
- Diluted Net Asset Value per Ordinary share rose by 0.9% to 261.0p, compared
with an increase of 1.2% in the Company's benchmark, the FTSE World Index -
Europe (ex UK) in sterling terms.
- Mid-market price per Ordinary share fell by 5.7% from 227.5p to 214.5p
- The Company was Highly Commended in the Investment Week Investment Trust
Awards for Europe 2002.
TOTAL RETURN
Six Months to 31st March 2003
Revenue Capital Total
�'000 �'000. �'000
Income and Capital Profits/(Losses)
Dividends and other income 745 - 745
Net profit on investments - 1,816 1,816
-------- ----------- -----------
Return before Expenses, Finance Costs 745 1,816 2,561
and Taxation
Expenses
Management fees (175) (524) (699)
Other expenses (277) - (277)
-------- ----------- -----------
Return before Finance Costs and 293 1,292 1,585
Taxation
Finance Costs
Interest payable (14) (43) (57)
Exchange gain/(loss) on currency loans - (17) (17)
-------- ----------- -----------
Return on ordinary activities before 279 1,232 1,511
Taxation
Taxation (142) 48 (94)
-------- ----------- -----------
Return to Equity Shareholders after 137 1,280 1,417
Taxation
-------- ----------- -----------
Transferred to/(from) Reserves 137 1,280 1,417
-------- ----------- -----------
Total Return per Ordinary share 0.24p 2.28p 2.52p
Diluted Earnings per Share 0.22p
TOTAL RETURN (COMPARATIVE)
Six Months to 31st March 2002
Revenue Capital Total
�'000 �'000. �'000
Income and Capital Profits/(Losses)
Dividends and other income 715 - 715
Net profit on investments - 29,076 29,076
-------- ----------- -----------
Return before Expenses, Finance Costs 715 29,076 29,791
and Taxation
Expenses
Management fees (239) (717) (956)
Other expenses (336) - (336)
-------- ----------- -----------
Return before Finance Costs and 140 28,359 28,499
Taxation
Finance Costs
Interest payable (25) (70) (95)
Exchange gain/(loss) on currency loans - 275 275
-------- ----------- -----------
Return on ordinary activities before 115 28,564 28,679
Taxation
Taxation (136) 42 (94)
-------- ----------- -----------
Return to Equity Shareholders after (21) 28,606 28,585
Taxation
-------- ----------- -----------
Transferred to/(from) Reserves (21) 28,606 28,585
-------- ----------- -----------
Total Return per Ordinary share (0.04p) 50.98p 50.94p
Diluted Earnings per Share (0.03p)
NOTES
The figures shown above are unaudited.
The revenue column above for each year represents the Revenue account of the
Company.
All revenue and capital items derive from continuing activities.
Management fees and loan finance costs are allocated as to 25% to revenue and
75% to capital.
Total Return per Ordinary share is calculated on a total return to Ordinary
shareholders of �1,417,000 (total return of �28,585,000) and a weighted average
of Ordinary shares in issue during the six months to 31st March 2003 of
56,140,499 (56,116,879).
EXTRACT FROM THE MANAGERS' REVIEW
Market Performance
Continental European stock markets ended this highly volatile period with small
gains.
In the final quarter of 2002, investors took some heart from sporadic
improvements in corporate newsflow, bargain hunting in sectors that had
suffered heavily earlier in the year. However, concerns over the prospect of
conflict in the Middle East and the faltering domestic economy increasingly
weighed on the market into 2003.
Over the review period traditionally defensive sectors such as water utilities
performed relatively poorly as investors turned their attention to more
growth-orientated sectors. Telecoms service firms were major beneficiaries of
improving sentiment, with action on debt reduction at some firms also finding
favour. Many IT-related sectors posted absolute gains, amid hopes that
cost-cutting measures have helped firms adapt to the more challenging business
environment. Insurance stocks surrendered their early gains as optimism related
to some companies' success in raising capital to strengthen their balance
sheets gave way to concerns over the effects of weaker stock markets. Food
retailers also performed poorly, with sentiment hit by news of accounting
irregularities at Ahold.
Outlook
Worries over the looming conflict in Iraq have had a major influence on
sentiment during the period, overshadowing recent sporadic signs of a possible
improvement in German economic activity. We believe investor confidence is now
showing signs of improvement as the conflict draws to a successful close. We
also take some encouragement from signs that the European Central Bank appears
more willing to lower interest rates further should the economic backdrop
deteriorate. However, the business backdrop remains fairly challenging with few
signs of any real recovery in end-user demand. We are therefore not yet ready
to predict a significant imminent and sustainable near-term market recovery,
and are continuing to focus on `best of breed' franchises which we believe are
attractively valued for long-term investors.
BALANCE SHEET
At At
31st March 30th
September
2003 2002
�'000 �'000
Fixed Assets
Listed investments at valuation 140,863 155,142
Investments in unlisted subsidiaries 337 337
---------- --------
141,200 155,479
Current Assets
Debtors 13,834 2,668
Cash at bank 3,318 1,117
----------- --------
17,152 3,785
Creditors:
Amounts payable within one year (8,974) (11,334)
----------- -----------
Net Current Assets/(Liabilities) 8,178 (7,549)
----------- -----------
Net Assets 149,378 147,930
----------- -----------
Capital and Reserves
Called-up share capital 28,073 28,066
Share premium account 26,417 26,389
Warrant reserve 1,706 1,710
Merger reserve 61,344 61,344
Capital reserve - realised 45,636 71,025
Capital reserve - unrealised (16,340) (43,009)
----------- -----------
146,836 145,525
----------- -----------
Revenue reserve 2,542 2,405
----------- -----------
Equity Shareholders' Funds 149,378 147,930
----------- -----------
Net Asset Value per Ordinary share 266.05p 263.54p
----------- -----------
Diluted Net Asset Value per Ordinary 261.02p 258.73p
share
----------- -----------
NOTES
The Net Asset Value per Ordinary share is calculated on attributable assets of
�149,378,000 (�147,930,000) and 56,145,767 (56,131,524) Ordinary shares in
issue at 31st March 2003.
CASH FLOW STATEMENT
Six Months to Six Months
to
31st March
31st March
2003
2002
�'000 �'000
Revenue Activities
Net dividends and interest received 384 380
from investments
Interest received on deposits 26 4
Underwriting commission 20 -
Expenses paid, allocated to revenue (296) (546)
-------- --------
134 (162)
-------- --------
Taxation Recovered
Income tax 88 143
--------- ---------
Servicing of Finance
Interest paid, allocated to revenue (14) (23)
--------- ---------
Financial Investment
Acquisitions of investments (162,328) (223,391)
Disposals of investments 173,650 227,099
Expenses paid, allocated to capital (616) (787)
------------ ------------
10,706 2,921
------------ ------------
Financing
Shares issued 31 43
Decrease in borrowings (3,519) (3,890)
Exchange (loss)/gain on currency loans (17) 275
---------- ----------
(3,505) (3,572)
---------- ----------
Equity Dividends Paid
Ordinary shares (1,684) (1,683)
--------- ---------
Net Cash Inflow/(Outflow) 5725 (2,376)
--------- ---------
Interim Report
The Interim Report for the six months to 31st March 2003 will be posted to
shareholders shortly. Copies will be available from the offices of Gartmore
Investment Limited, Gartmore House, 8 Fenchurch Place, London EC3M 4PB.
NOTE
The above financial information is unaudited and does not constitute statutory
accounts under the Companies Act 1985. Full statutory accounts for the year
ended 30th September 2002, which included an unqualified audit report, have
been filed with the Registrar of Companies.
GARTMORE INVESTMENT LIMITED
SECRETARIES
28th April 2003
END