Interim Results
21 Julio 2003 - 9:26AM
UK Regulatory
21 July 2003
EDINBURGH UK TRACKER TRUST PLC
Interim Results for the six months ended 30 June 2003
Edinburgh UK Tracker Trust is the UK's only investment trust with the
sole objective of tracking the performance of the FTSE All-Share Index.
* Trust has tracked its benchmark index (FTSE All-Share Index) to
within 0.1% p.a. since 1990
* Net asset value per share, excluding current retained earnings, up
4.3% to 177.15p, compared to an increase in the Index of 4.1%
* Share price up 4.3% to 174.5p
* Maintained interim dividend of 2.2p per share
For further information, please contact:-
David McCraw
Edinburgh Fund Managers plc 07766 917085
Chairman's Statement
The company continues to meet its objective of tracking closely the
performance of the FTSE All-Share Index. The net asset value per share
(excluding current retained earnings) rose by 4.3% in the six months
ended 30 June 2003 to 177.15p and this compares with an increase in the
index of 4.1%. The company's share price rose by 4.3% to 174.5p which
represented a discount of 1.9% to the net asset value (including
retained earnings) of 177.92p. The discount at 31 December 2002 was
1.5%.
The strategy employed to track the FTSE All-Share Index is full
replication of the FTSE 350 Index. This means that the company holds
all of the 350 stocks that make up this index which represented 97.0% of
the value of the FTSE All-Share Index at 30 June 2003. The remaining
3.0% of the FTSE All-Share Index covers smaller companies and this area
is represented in the company's portfolio by an equity linked unsecured
loan stock, which tracks the FTSE SmallCap (ex Investment Companies)
Index, and the largest stocks within the FTSE SmallCap Index. At 30
June 2003, the total portfolio consisted of 466 stocks compared to 690
stocks included in the FTSE All-Share Index.
The directors have declared an interim dividend of 2.20p (2002 - 2.20p)
per share for the year to 31 December 2003 payable on 29 August 2003 to
shareholders on the register on 8 August 2003.
Your board was encouraged by the continued support for the company as
expressed by the vote for continuation at the Annual General Meeting in
April. Of the 16.1 million shares voted by proxy (26.4% of the issued
share capital), 99.9% were cast in favour.
The level of activity within the portfolio during the period was
relatively low once again. Transactions reflected the investment of
funds received from the issue of new shares as well as changes to the
constituents of the index. A total of 1 million new shares were issued
in the period, at a premium to net asset value, and raised �1.6 million
of new funds which were invested across existing holdings.
The largest single transaction in the period was the increased weighting
of HSBC in the index. This arose from HSBC acquiring Household
International by issuing new shares. At the quarterly review of the
index constituents in March, Crest Nicholson, Headlam, NHP, Paladin
Resources and Perpetual Income & Growth Trust were added to the FTSE 350
Index. While in June, Corus, Big Food Group, Ebookers, Atkins (WS),
Spirent and Thus were the new entrants in the index. The total value of
purchases in the period amounted to �2.8 million while sales totalled
�1.2 million.
The UK equity market, alongside global markets, has staged a strong
recovery from the low points reached in March of this year following the
brief conflict in Iraq and further cuts in US and European interest
rates. Investors are now beginning to anticipate a recovery in the
global economy in the second half of 2003. Corporate newsflows however
remain mixed in the UK and stronger evidence of an improvement in
profits may be required to support investor confidence and allow UK
equities to move to higher levels.
David Tucker
Chairman
21 July 2003
STATEMENT OF TOTAL RETURN
for the six months ended 30 June 2003
Revenue Capital Total
�000 �000 �000
Gain on investments - 4,635 4,635
Investment income 2,111 - 2,111
Interest receivable 7 - 7
Investment management fee (146) - (146)
Administrative expenses (138) - (138)
______ ______ ______
Return on ordinary activities before taxation 1,834 4,635 6,469
Taxation - - -
______ ______ ______
Return on ordinary activities after taxation 1,834 4,635 6,469
Dividends (1,368) - (1,368)
______ ______ ______
466 4,635 5,101
______ ______ ______
Return per share 3.02p 7.63p 10.65p
Interim Dividend per share 2.20p - 2.20p
______ ______ ______
_________________________________________________________________________________
for the six months ended 30 June 2002
Revenue Capital Total
�000 �000 �000
Losses on investments - (13,653) (13,653)
Investment income 2,001 - 2,001
Interest receivable 41 - 41
Investment management fee (163) - (163)
Administrative expenses (123) - (123)
______ ______ _______
Return on ordinary activities before taxation 1,756 (13,653) (11,897)
Taxation - - -
______ ______ ______
Return on ordinary activities after taxation 1,756 (13,653) (11,897)
Dividends (1,311) - (1,311)
______ ______ ______
445 (13,653) (13,208)
Return per share 3.02p (23.51p) (20.49p)
______ ______ ______
Interim Dividend per share 2.20p - 2.20p
______ ______ ______
__________________________________________________________________________________
STATEMENT OF TOTAL RETURN
for the year ended 31 December 2002
Revenue Capital Total
�000 �000 �000
Losses on investments - (33,059) (33,059)
Income from investments 3,583 - 3,583
Interest receivable 83 - 83
Investment management fee (308) - (308)
Administrative expenses (246) - (246)
______ ______ ______
Return on ordinary activities before taxation 3,112 (33,059) (29,947)
Taxation - - -
______ ______ ______
Return on ordinary activities after taxation 3,112 (33,059) (29,947)
Dividends (3,181) - (3,181)
______ ______ ______
(69) (33,059) (33,128)
______ ______ ______
Return per share 5.30p (56.31p) (51.01p)
______ ______ ______
BALANCE SHEET
At 30 At 31 At 30 June
June December 2002
2003 2002
�000 �000 �000
Fixed assets
Investments 107,824 101,552 118,146
_______ _______ _______
Current assets 1,918 2,109 2,399
Current Liabilities (1,379) (1,980) (1,410)
_______ _______ _______
Net current assets 539 129 989
_______ _______ _______
Total Net Assets 108,363 101,681 119,135
_______ _______ _______
Capital and reserves
Called up share capital 6,091 5,991 5,847
Reserves 102,272 95,690 113,288
_______ _______ _______
Total equity shareholders'funds 108,363 101,681 119,135
_______ _______ _______
Net asset value per share 177.92p 169.73p 203.77p
_______ _______ _______
Net asset value per share excluding current
period retained earnings 177.15p 169.85p 203.00p
_______ _______ _______
Net asset value per share excluding retained
earnings since inception 176.44p 169.01p 202.15p
_______ _______ _______
CASHFLOW STATEMENT
For 6 For 6 For year
months months ended
ended ended 31 December
30 June 2003 30 June 2002 2002
�000 �000 �000
Net cash inflow from operating activities 1,718 1,652 3,072
Net cash outflow from financial investment (1,718) (2,794) (5,160)
Equity dividends paid (1,885) (1,806) (3,105)
Net Purchases of AAA Rated Money Market Funds (450) - (1,000)
______ ______ ______
Net cash outflow before financing (2,335) (2,948) (6,193)
Net cash inflow from financing 1,580 2,312 4,779
______ ______ ______
DECREASE IN CASH (755) (636) (1,414)
______ ______ ______
NOTES:
1. The accounts are prepared under the same accounting policies used for the year ended 31 December 2002.
2. The interim dividend will be paid on 29 August 2003 to shareholders on the register at the close of
business on 8 August 2003. The ex-dividend date is 6 August 2003.
3. The statement of total return, the balance sheet and the cashflow statement set out above do not
represent full accounts in accordance with Section 240 of the Companies Act 1985. The financial
information for the year ended 31 December 2002 has been extracted from the Annual Report and Accounts
of the Company which have been filed with the Registrar of Companies. The auditors' report on those accounts
was unqualified.
4. The investment management fee in both cases includes irrecoverable VAT calculated at 17.5 per cent.
5. The Interim Report will be posted to shareholders on 28 July 2003 and copies will be available from the
investment manager.
Please note that past performance is not necessarily a guide to the future and that the value of investments
and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.
For Edinburgh UK Tracker Trust plc
Edinburgh Fund Managers plc, Secretary
END