Final Results
03 Septiembre 2003 - 11:42AM
UK Regulatory
RNS Number:3588P
Jupiter Primadona Growth Trust PLC
03 September 2003
JUPITER PRIMADONA GROWTH TRUST PLC
Preliminary Announcement
CHAIRMAN'S STATEMENT
Your Company's net assets, adjusted for share repurchases, declined by 14.8% in
the year to 30th June 2003. Over the same period the FTSE All Share Index
declined by 12.9%, while the FT/S&P Actuaries World Index fell by 11.1% in
sterling terms. Sterling strengthened against the Yen and US Dollar, depressing
overseas returns within the Company's portfolio, although its weakness against
the Euro was of minor benefit to the valuation of the Company's European
investments. Over the past five years, your Company's assets (adjusted for
changes in share capital) have declined by 29.4% compared to a 28.1% fall in the
FTSE All Share Index.
Revenue after tax for the year was #425,000, compared to #115,000 in the
previous year. A final dividend of 5p (net) payable 10th October 2003, is
proposed. This will make an unchanged total for the year of 8p (net).
The period under review was marked by considerable volatility in world markets,
a trend accentuated by potent economic and geopolitical factors. The war in
Iraq, terrorism and the outbreak of the respiratory disease, SARS, were all
factors weighing on the markets, as well as uncertainty regarding growth and the
valuation of corporate earnings.
Economic policy was generally supportive of growth, as interest rates were cut
in the US, UK and Europe. An absence of inflation was a factor in the strong
performance of bond markets and Government bond yields fell to historically low
levels in many markets.
The resolution of the Iraq war proved to be a turning point in terms of
sentiment and market performance. The Investment Manager, having adopted a
fairly cautious stance for most of the year, deployed part of the Company's
gearing facility during March to buy a number of attractively priced UK small
and mid cap stocks. In addition, a strategic investment was made into the
Chinese market, via holdings of Chinese companies quoted on the Hong Kong market
(the so-called 'Red Chips'). In the view of the Investment Manager, market
sentiment and valuations in China had become overly depressed by the SARS
epidemic and war concerns. Moreover, long term rates of growth and valuations
for many Chinese companies compare extremely favourably against many other Asian
and, especially, Western companies. To date, the strategy has been successful,
as the Chinese market has improved by over 15% since the purchases were made.
Although the Company's performance has been disappointing, your board has
continued to pursue measures to enhance shareholder value. The share buy-back
programme has continued with more shares purchased during the year for
cancellation. Such purchases have helped to control the discount at which the
Company's shares trade relative to their NAV and have also enhanced the NAV for
continuing shareholders.
Another initiative to improve returns on the trading subsidiary has been the
introduction of a facility for the Investment Manager to use 'contracts for
differences' to sell securities short and thereby take advantage of downward, as
well as upward, price movements in the market. Strict limits have been set to
overall exposures and, to date, results have been positive. The board believes
the prudent application of this facility will enhance the return profile from
the trading subsidiary whilst controlling risk.
This has been a disappointing year for the Company. However, there are signs of
improvement. Your Company has performed well since the bottom of the market in
March, helped by the gearing put in place by the Investment Manager. Interest
rates remain low and the prolonged 'bear' market left valuations, especially for
small and medium sized companies, at much more attractive levels.
Finally, I am very sad to report that Mr L T Allen who was one of the original
directors of your Company and who retired after almost thirty years service in
2001, died in August. On behalf of the board I would like to pay tribute to his
contribution to the Company over such a long period and to pass on our
condolences to his family.
CC Surtees
Chairman
3rd September 2003
CONSOLIDATED STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account)
for the year ended 30th June 2003
2003 2002
Revenue Capital Total Revenue Capital Total
CAPITAL LOSSES #'000 #'000 #'000 #'000 #'000 #'000
ON
INVESTMENTS
Net realised - (6,245) (6,245) - (8,099) (8,099)
losses
Movement on
unrealised
appreciation of
fixed asset
investments - 427 427 - (12,793) (12,793)
TOTAL CAPITAL
LOSSES
ON - (5,818) (5,818) - (20,892) (20,892)
INVESTMENTS
Income from
fixed asset
investments 764 - 764 669 - 669
Other profits/ 39 - 39 (188) - (188)
(losses)
GROSS REVENUE
AND
CAPITAL 803 (5,818) (5,015) 481 (20,892) (20,411)
LOSSES
Investment (126) (127) (253) (181) (181) (362)
management
fee
Other (189) (139) (328) (158) (125) (283)
administrative
expenses
NET RETURN ON
ORDINARY
ACTIVITIES
BEFORE
FINANCIAL COSTS
AND
TAXATION 488 (6,084) (5,596) 142 (21,198) (21,056)
Interest (56) (56) (112) (35) (35) (70)
payable
RETURN ON
ORDINARY
ACTIVITIES 432 (6,140) (5,708) 107 (21,233) (21,126)
BEFORE
TAXATION
Tax on ordinary (7) - (7) 8 - 8
activities
RETURN ON
ORDINARY
ACTIVITIES
AFTER
TAXATION 425 (6,140) (5,715) 115 (21,233) (21,118)
Dividends (502) - (502) (549) - (549)
TRANSFER FROM
RESERVES (77) (6,140) (6,217) (434) (21,233) (21,667)
RETURN PER
ORDINARY
SHARE 6.5p (94.3)p (87.8)p 1.6p (301.9)p (300.3)p
CONSOLIDATED BALANCE SHEET
as at 30th June 2003
2003 2002
#'000 #'000
FIXED ASSETS
Listed on the UK Stock Exchange 29,205 30,100
Listed on overseas exchanges 2,986 2,265
Unlisted 2,218 3,389
------- -------
34,409 35,754
------- -------
CURRENT ASSETS
Investments 126 181
Debtors 358 435
Cash at bank 186 4,464
------- -------
670 5,080
CREDITORS: amounts falling due within one year (3,903) (1,314)
------- -------
NET CURRENT (LIABILITIES)/ASSETS (3,233) 3,766
======= =======
TOTAL ASSETS LESS CURRENT LIABILITES 31,176 39,520
======= =======
CAPITAL AND RESERVES
Called up share capital 1,578 1,705
Share premium 23,009 24,861
Capital redemption reserve 3,064 1,085
Capital reserve account - realised 11,037 19,731
Capital reserve account - unrealised (8,091) (8,518)
Revenue reserve 579 656
======= =======
SHAREHOLDERS' FUNDS 31,176 39,520
======= =======
NET ASSET VALUE PER SHARE 494p 580p
======= =======
INCOME
Group Group
2003 2002
#'000 #'000
Income from fixed asset investments:
Dividends from UK companies 671 659
Dividends from overseas companies 93 10
------ -------
764 669
------ -------
Other income:
Deposit interest 23 51
Underwriting commissions - 8
Profit/(losses) on dealings by subsidiary 16 (247)
------ ------
39 (188)
------ ------
803 481
====== ======
Income from fixed asset investments is derived:
Listed on the UK Stock Exchange 671 659
Listed overseas 93 10
------ ------
764 669
====== ======
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30th June 2003
2003 2002
#'000 #'000
OPERATING ACTIVITIES
Net cash inflow/(outflow) from operating activities 366 (24)
------- -------
SERVICING OF FINANCE
Interest paid (83) (70)
------- -------
TAXATION
Tax (paid)/recieved (6) 20
------- -------
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Purchase of fixed asset investments (28,905) (28,795)
Sale of fixed asset investments 23,771 39,355
------- -------
Net cash (outflow)/inflow from capital expenditure
and
financial investment (5,134) 10,560
EQUITY DIVIDENDS PAID (524) (567)
------- -------
Net cash (outflow)/inflow before financing (5,381) 9,919
------- -------
FINANCING
Cost of share repurchase (2,127) (1,522)
Loan recieved 3,000 -
------- -------
Net cash inflow/(outflow) from financing 873 (1,522)
------- -------
(Decrease)/increase in cash in year (4,508) 8,397
======= =======
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2003
#'000
Decrease in cash in the year (4,508)
Increase in debt (3,000)
Net funds at 1st July 2002 4,464
-------
Net debt at 30th June 2003 (3,044)
=======
The directors propose a final dividend in respect of the year ended 30th June
2003 of 5p net per share. This dividend will be payable on 10th October 2003 to
shareholders on the register on 12th September 2003.
The figures for the year ended 30th June 2003 do not constitute full accounts
within the meaning of Section 240 of the Companies Act 1985. Statutory accounts
for the year ended 30th June 2002, upon which the auditors gave an unqualified
report, have been delivered to the Registrar of Companies. Statutory accounts
for the year ended 30th June 2003 including an unqualified audit report will be
delivered to the Registrar of Companies in due course.
The Annual Report and Accounts will be posted to shareholders shortly and copies
will be available from the registered office of the Company at 1 Grosvenor
Place, London SW1X 7JJ.
The Annual General Meeting is to be convened for 25th September 2003.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LJMFTMMBMBLJ