Interim Results
20 Mayo 2003 - 6:22AM
UK Regulatory
RNS Number:3135L
JPMorgan Fleming Managed Income PLC
20 May 2003
JPMORGAN FLEMING MANAGED INCOME PLC
STOCK EXCHANGE ANNOUNCEMENT OF
UNAUDITED RESULTS FOR THE SIX MONTHS
TO 28th FEBRUARY 2003
The Board today release the unaudited interim results of the Company for the six
month period to 28th February 2003.
The following are comments from the Chairman:
Chairman's Interim Statement
Performance
During the six month period to 28th February 2003, the Company's net asset value
total return was minus 5.0%. This compares to the Company's benchmark, the
Micropal UK Unit Trust/OEICS: UK Equity and Bond Income Sector, which fell by
8.8%.
Over the same period the Company's share price fell from 74.5p to 68.0p and its
premium to net assets declined from 1.1% to 0.3%.
Revenue and Dividends
Total earnings per share for the six months to 28th February 2003 were 2.18p.
Dividends per share were 2.18p over the same period. The first quarter's
dividend of 1.09p was paid on 3rd March 2003, and the second quarter's dividend
of 1.09p will be paid to shareholders on 2nd June 2003.
The quarterly dividend payment of 1.09p has been maintained for the past six
quarters.
In the absence of unforeseen circumstances, the Board intends for the Company to
maintain its current quarterly dividend payments of 1.09p per share for the
remainder of this financial year. However shareholders should be aware that the
Company, like other investors, is operating in an environment of lower nominal
interest rates and reduced dividend receipts. Although income generation will
remain a key priority of the Company's investment strategy, shareholders should
not assume that the current dividend policy will be maintained indefinitely if
these economic circumstances continue to prevail.
Share Capital
The Company has the authority to repurchase and issue new shares. In the six
month period to 28th February 2003, the Company issued 110,000 new ordinary
shares for cash and repurchased 344,440 shares for cancellation. These shares
were issued at a premium, and repurchased at a discount to net asset value,
thereby enhancing net asset value and benefiting existing shareholders. Since
the period end, the Company has issued an additional 47,778 new ordinary shares.
Board of Directors
Ken Culley, who has been a Director of the Company since its launch, resigned
with effect from 31st December 2003, upon his appointment as Chairman of
JPMorgan Fleming Managed Growth plc. The Board is extremely grateful to Mr
Culley for his wise counsel.
Corporate Governance
The Board has taken a keen interest in developments within this area, and has
responded to The Financial Services Authority (the "FSA") on its Consultation
Paper 164. In particular, the Board has strongly urged the FSA to reconsider its
proposal concerning cross investing which, as currently drafted, would unduly
restrict the valid commercial operation of clearly defined investment companies
such as JPMorgan Fleming Managed Income plc. The Board have proposed to the FSA
that it adopts the alternative rule put forward by the Association of Investment
Trust Companies ("AITC") which the Directors believe fully addresses the
regulatory concerns of the FSA but does not carry with it some of the unintended
consequences.
Company Brokers
The Board is pleased to announce that Close Brothers Securities (a division of
Winterflood Securities Limited) was appointed Broker to the Company in March
2003.
Auditors
In April 2003 Ernst & Young LLP resigned as Auditors to the Company. Deloitte &
Touche have been appointed until the next Annual General Meeting, where
shareholders will have the opportunity to vote on their appointment. The
Directors confirm that the resignation of Ernst & Young LLP was on amicable
terms and that there are no circumstances which need to be brought to the
attention of shareholders.
Simon Miller
Chairman 20th May 2003
Please note that the above statements may differ from the final version to be
published in the interim accounts.
For further information, please contact:
Hilary Lowe
J.P. Morgan Fleming Asset Management (UK) Limited, 020 7742 3274
Secretary to the Company
JPMorgan Fleming Managed Income plc
Unaudited figures for the six months ended 28 February 2003
Statement of Total Return (Unaudited)
Six months to 28 February 2003 Six months to 28 February 2002 Year to 31 August 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Realised losses on - (5) (5) - (256) (256) - (332) (332)
investments
Net change in - (1,986) (1,986) - (1,282) (1,282) - (6,036) (6,036)
unrealised appreciation
Currency gains on cash
and short-term - - - - 23 23 - 23 23
deposits held during
the period
Franked dividends 646 - 646 479 - 479 1,388 - 1,388
UK unfranked dividends - - - - - - 63 - 63
UK interest 164 - 164 132 - 132 219 - 219
Overseas interest 80 - 80 76 - 76 157 - 157
Deposit interest 4 - 4 9 - 9 13 - 13
_______ ________ _______ ______ _______ ________ _______ _______ _______
Gross return 894 (1,991) (1,097) 696 (1,515) (819) 1,840 (6,345) (4,505)
Management fee (39) (39) (78) (43) (43) (86) (87) (87) (174)
Other administrative (70) (70) (47) - (47) (156) - (156)
expenses
Interest payable - - - - - - (1) (1) (2)
_______ _______ _______ ______ _______ _______ _______ _______ _______
Return before taxation 785 (2,030) (1,245) 606 (1,558) (952) 1,596 (6,433) (4,837)
Taxation (41) 11 (30) (52) 13 (39) (69) 26 (43)
______ _______ _______ ______ _______ ______ _______ _______ _______
Return attributable to 744 (2,019) (1,275) 554 (1,545) (991) 1,527 (6,407) (4,880)
ordinary shareholders
Dividends on ordinary (740) - (740) (747) - (747) (1,492) - (1,492)
shares
______ _______ _______ ______ _______ ______ _______ _______ _______
Transfer to/ (from) 4 (2,019) (2,015) (193) (1,545) (1,738) 35 (6,407) (6,372)
reserves
Return per ordinary 2.18p (5.91)p (3.73)p 1.62p (4.52)p (2.90)p 4.47p (18.74)p (14.27)p
share
Dividend (s) per 2.18p 2.18p 4.36p
ordinary share
JPMorgan Fleming Managed Income plc
Unaudited figures for the six months ended 28 February 2003
BALANCE SHEET 28 February 28 February 31 August
2003 2002 2002
#'000 #'000 #'000
Investments at valuation 23,664 30,207 25,311
Net current liabilities (617) (373) (98)
______ _______ _______
Total net assets 23,047 29,834 25,213
===== ===== =====
Net asset value per ordinary share 67.81p 87.21p 73.67p
CASH FLOW STATEMENT
2003 2002 2002
#'000 #'000 #'000
Net cash inflow from operating activities 773 588 1,436
Net cash outflow from returns on investments and servicing - - (2)
of finance
Total taxation paid - - (78)
Net cash inflow/(outflow) from capital expenditure and 109 (266) (202)
financial investment
Total equity dividends paid (746) (725) (1,470)
Net cash (outflow)/inflow from financing (152) 152 165
_______ ______ ______
Decrease in cash for the period (16) (251) (151)
===== ==== ====
The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 28th February 2003 have been delivered to the Registrar of Companies.
J.P. MORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED
20th May 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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