RNS Number:8995N
M&G High Income Inv Tst PLC
23 July 2003
High Income Investment Trust Announcement
Dividend
M&G High Income Investment Trust P.L.C. announces that at a meeting of the Board
of Directors held today, it was resolved to declare a fourth interim dividend of
1.65p (2002: 1.575p) per Income Share in respect of the year ending 31 May 2003,
to be paid on 26 August 2003 to Income Shareholders on the register at the close
of business on 1 August 2003. The ex dividend date is 30 July 2003.
Financial Performance
The Board is pleased to announce a fourth interim dividend of 1.65p net per
Income Share, making a total of 4.725p net per Income Share for the year, 1.6%
higher than last year. At the end of the period, the yield on the Company's
Package Units was 5.3%, well above the yields of 3.5% and 4.6% respectively on
the FTSE All-Share and the FTSE 350 Higher Yield indices.
On a net asset value ('NAV') basis each Package Unit produced a negative total
return of 8.7% over the year, against a negative total return of 17.6%
for the FTSE All-Share Index and a negative total return of 19.5% on the FTSE
350 Higher Yield Index. Although disappointing in itself, this should be viewed
in the context of exceptionally difficult and volatile stockmarket conditions
prevailing throughout the year.
Over the past three years, sustained investor preference for high yielding
shares and fixed interest securities has complemented the Company's investment
strategy and the portfolio has outperformed the FTSE All-Share Index by 10.4%
per annum over that period.
Statement of Total
Return
(incorporating the
revenue account)
2003 2002
Revenue Capital Total Revenue Capital Total
for the year ended 31 May #'000 #'000 #'000 #'000 #'000 #'000
Losses on - (7,877) (7,877) - (1,797) (1,797)
investments
Income 2,974 - 2,974 2,961 - 2,961
Investment management (210) (427) (637) (243) (494) (737)
fee
Other expenses (95) - (95) (75) - (75)
Return on ordinary 2,669 (8,304) (5,635) 2,643 (2,291) 352
activities before
tax
Tax on ordinary activities (96) 96 - (117) 117 -
Return on ordinary 2,573 (8,208) (5,635) 2,526 (2,174) 352
activities after
tax
Appropriations for - (1,675) (1,675) - (1,549) (1,549)
premium payable on
redemption
Dividends(non-equity) (2,540) - (2,540) (2,504) - (2,504)
Transfer to / (from) 33 (9,883) (9,850) 22 (3,723) (3,701)
reserves
Earnings per Income 4.78p 4.69p
Share
All the items dealt with in arriving at revenue on ordinary activities before
tax for 2003 related to continuing activities, no operations were acquired or
discontinued during the year.
The revenue column of this statement is the profit and loss account of the
company.
Balance Sheet
As at 31 May 2003 2003 2002
#'000 #'000
Employment of capital
Fixed assets
Investments 54,249 62,881
Current assets
Debtors 653 507
Cash at bank 711 414
1,364 921
Creditors: Amounts falling due (950) (876)
within one year
Net current assets 414 45
Net assets 54,663 62,926
Capital and reserves
Called up share capital 1,613 1,616
Capital redemption reserve 15,549 15,546
Zero Dividend Preference Share 7,905 6,230
appropriation reserve
Special reserve 37,372 37,460
Capital reserves - realised (5,340) (2,157)
- unrealised (2,644) 4,056
Revenue Reserve 208 175
Shareholders'funds(all non-equity) 54,663 62,926
Net asset value per Zero Dividend 35.15p 32.11p
Preference Share
Net asset value per Income Share 68.20p 71.90p
Net asset value per Capital Share - 14.41p
Net asset value per Income & Growth 68.20p 86.31p
Unit
Net asset value per Package Unit 103.35p 118.42p
Cash Flow Statement
2003 2002
for the year ended 31 May #'000 #'000 #'000 #'000
Net cash inflow from operating 2,295 2,155
activities
Servicing of finance
Dividends paid (non-equity) (2,501) (2,455)
Taxation
Income tax recovered - 14
Investment activities
Purchase of investments (9,891) (8,808)
Sale of investments 10,482 8,336
Net cash inflow/ (outflow) from investing 591 (472)
activities
Financing
Repurchase of Package Units
(including related costs) (88) (2)
Increase/ (decrease) in cash 297 (760)
Note
The results for 2002 are based on accounts filed with the Registrar of Companies
which carry an audit report which is unqualified and includes no matters of
adverse comment. The 2003 figures have been extracted from the audited financial
statements which will be filed with the Registrar of Companies with an
unqualified audit report with no matters of adverse comment.
The annual reports will be posted to shareholders on 4 August 2003 and the
Annual General Meeting will be held at 11.15 am on 10 September 2003 at
Governor's House, Laurence Pountney Hill, London EC4R 0HH.
Investment Portfolio
As at 31 May 2003
Holding Value % net
#'000 assets
Mining 2.16
100,000 Lonmin 820 1.50
30,000 Rio Tinto (Regd.) 359 0.66
Oil & gas 7.46
400,000 BP 1,672 3.06
200,000 Hunting 201 0.37
550,000 Shell Transport & Trading (Regd.) 2,205 4.03
Chemicals 0.70
50,000 BOC Group 385 0.70
Construction & building materials 6.03
250,000 Barratt Developments 1,175 2.15
150,000 BPB 458 0.84
500,000 Crest Nicholson 5.5% Cnv. Red. Pref. 493 0.90
150,000 Persimmon 697 1.27
350,000 Pilkington 258 0.46
50,000 RMC Group 224 0.41
Aerospace & defence 0.94
249,843 Meggitt 514 0.94
Engineering & machinery 2.78
125,000 IMI 383 0.70
125,000 Rotork 406 0.74
100,000 Tomkins 240 0.44
150,000 Vitec Group 491 0.90
Automobiles 0.38
100,000 GKN 205 0.38
Beverages 1.35
25,000 Diageo 164 0.30
150,000 Scottish & Newcastle 574 1.05
Food producers & processors 0.93
25,000 Dairy Crest 101 0.18
75,000 Unilever 408 0.75
Pharmaceuticals 3.09
140,000 GlaxoSmithKline 1,687 3.09
Tobacco 2.98
175,000 Gallaher 1,075 1.97
50,000 Imperial Tobacco 550 1.01
General retailers 4.59
25,000 Boots Group 156 0.29
40,000 Carpetright 248 0.45
63,049 Debenhams 241 0.44
325,000 Findel 873 1.60
75,000 GUS 471 0.86
150,000 Smith W.H 520 0.95
Leisure & hotels 4.51
150,000 William Hill 401 0.73
84,957 Intercontinental Hotels 367 0.67
148,305 Mitchells & Butlers 310 0.57
150,000 Rank Group 375 0.69
615,000 Rank Group Cnv. Cum. Pref. 632 1.16
57,442 Wolverhampton & Dudley 375 0.69
Media & entertainment 1.94
400,000 Carlton Communications 6.5p Cnv. Pref. 367 0.67
2010
150,000 Trinity Mirror 694 1.27
Support services 2.00
60,000 Davis Service Group 230 0.42
75,000 Electrocomponents 240 0.44
120,000 RAC 621 1.14
Transport 4.51
250,000 Arriva 905 1.66
125,000 BBA Group 269 0.49
175,000 FirstGroup 465 0.85
80,000 Mersey Docks & Harbour 428 0.78
7,206 Peninsular & Oriental Steam Nav. Dfd. 17 0.03
225,000 Wincanton 381 0.70
Food & drug retailers 1.06
75,000 Safeway 202 0.37
140,000 Sainsbury (J) 379 0.69
Telecommunication services 4.15
200,000 BT Group 390 0.71
#300,000 Vodafone (MSDW) 6.5% PERQ 2004 388 0.71
22,500 Vodafone ADR Cnv. 302 0.55
900,000 Vodafone Group 1,192 2.18
Electricity 2.15
100,000 Scottish & Southern Energy 634 1.16
150,000 Scottish Power 542 0.99
Utilities - Other 6.22
300,000 Kelda Group 1,300 2.38
75,000 National Grid Transco 298 0.55
300,000 Northumbrian Water 321 0.59
114,430 Pennon Group 767 1.40
70,000 Severn Trent 524 0.96
30,000 United Utilities 184 0.34
Banks 11.08
70,000 Alliance & Leicester 584 1.07
360,000 Barclays 1,560 2.85
200,000 Bradford & Bingley 697 1.28
259,000 HSBC Hldgs. 1,867 3.42
300,000 Lloyds TSB Group 1,342 2.46
Life assurance 1.18
75,000 Britannic 164 0.30
250,000 Friends Provident 290 0.53
50,000 Prudential 190 0.35
Real estate 2.74
250,000 Brixton 565 1.03
25,000 Land Securities 203 0.37
500,000 Slough Estates 8.25p Cnv. Red. Pref. 730 1.34
Speciality & other finance 2.48
70,294 Close Brothers Group 420 0.77
92,038 Provident Financial 578 1.06
250,000 Singer & Friedlander Group 356 0.65
Software & computer services 0.26
90,000 Sage Group 144 0.26
Non-convertible preference shares 9.97
1,500,000 Aviva 8.75% Cum. Irrd. Pref. 1,667 3.05
750,000 General Accident 8.875% Cum. Irrd. Pref. 888 1.62
550,000 HBOS 9.75% Non-cum Irrd. Pref. 802 1.47
400,000 National Westminster 9% Series A Non-cum 559 1.02
Pref.
1,250,000 Royal & Sun Alliance 7.375% Cum. Irrd. 1,009 1.84
Pref.
500,000 Standard Chartered 7.375% Non-cum. Irrd. 530 0.97
Pref.
Sterling Corporate Bonds 11.60
#300,000 Alliance & Leicester 8.75% Bds. 2006 343 0.63
#400,000 Associated British Ports 6.625% Bds. 427 0.78
2008
#285,000 Austria (Republic of) 9% Bds.2004 302 0.55
#698,000 Capital Shopping 6.875% Bds. 2013 706 1.29
#655,000 Carlsberg Finance 7% Bds. 2013 721 1.32
#700,000 DWR Cymru Financing 8.174% Bds. 2036 801 1.46
#1,500,000 HSBC 9.25% Bds. 2049 1,735 3.17
#255,000 London Merchant Secs. 6.5% Bds. 2026 268 0.49
#211,000 National Westminster Bank 7.625% Bds. 245 0.45
2049
#499,000 Shaftesbury 8.5% 1st Mort. Deb. 2024 625 1.14
#170,000 United Utilities Water 5.25% Bds. 2010 177 0.32
Total investments 54,249 99.24
Net current assets 414 0.76
Net assets 54,663 100.00
This information is provided by RNS
The company news service from the London Stock Exchange
END
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