Final Results
07 Noviembre 2003 - 12:03PM
UK Regulatory
RNS Number:8503R
JPMorgan Fleming Managed Income PLC
07 November 2003
JPMORGAN FLEMING MANAGED INCOME PLC
STOCK EXCHANGE ANNOUNCEMENT
7th November 2003
The Board of JPMorgan Fleming Managed Income plc are pleased to announce the
unaudited results of the Company for the year ended 31st August 2003.
Commenting on the results the Chairman has made the following statement.
Chairman's Statement
When I wrote to shareholders last year, financial markets were operating in the
shadow of conflict, exacerbated by a severe worldwide economic turndown. A year
later, the world has moved on, sentiment has changed and markets, although
susceptible to shocks, are operating on a much-improved footing.
The Company's performance over the past year reflects this improvement in
markets. Total return on net assets was 11.6%, against a benchmark total return
of 5.9%. In the first half of the year both the investment trust sector and the
UK corporate bond market, which make up a substantial proportion of the
portfolio, were suffering. In the second half, sentiment changed, and
performance in both sectors was strong.
The dividend for the year is unchanged at 4.36p. Your Company, like other
investment vehicles, operates in an environment of low nominal interest rates
and reduced dividend returns. Whilst income remains a priority, your Board is
acutely aware of the pressures the current income requirement places on the
Company in terms of its other key objective, the provision of capital growth.
Your Board and the Managers continually monitor how best to achieve these
objectives.
Corporate governance, for perfectly valid reasons, plays an ever-increasing role
in the lives of all investment trusts. Your Board considers that it complies
with the principles of corporate governance as outlined in the AITC Code and it
welcomes the forthcoming changes to the Combined Code. Of particular
significance to this Company is the change to the Listing Rules, that bars your
Company from investing more than 10% in aggregate of its gross assets in other
investment trusts except where those trusts themselves have stated policies to
invest no more than 15% of their gross assets in other investment trusts. As a
material portion of your Company's portfolio is invested in investment trusts,
this might have posed a threat to the future management of the portfolio. Your
Board has been advised by the Manager that all of the investment trusts in the
Company's portfolio have now confirmed policies to invest no more than 15% of
their assets in other listed investment trusts and accordingly our current
universe remains intact.
This and other changes came into effect on 1st November. Additional changes,
which come into force on 1st April 2005, are intended to strengthen the
independence of the Board vis a vis its investment managers.
During the year, Close Brothers Securities were appointed brokers to the Company
and Deloitte and Touche LLP were appointed Auditors upon the resignation of
Ernst & Young LLP. Your Board can confirm that Ernst & Young resigned on
amicable terms and there were no circumstances that needed to be brought to
shareholders' attention.
Shareholders should by now have received a copy of the announcement made on 27th
October that the Boards of this Company and JPMorgan Fleming Managed Growth plc
are in discussions regarding a possible combination of the Companies. Any such
transaction would require shareholder approval at an Extraordinary General
Meeting of the Company and it is expected that we should be in a position to
provide further information shortly.
Your Directors and I very much look forward to welcoming you at the Company's
Annual General Meeting which will be held at 60 Victoria Embankment, London EC4Y
0JP on Thursday 11th December 2003 at 11.00 am. The investment managers will
review the past year and comment on the outlook for the current year. If you
have any detailed or technical questions, you may wish to raise these in advance
with the Company Secretary at Finsbury Dials, 20 Finsbury Street, London EC2Y
9AQ. Shareholders who are unable to attend the AGM in person are encouraged to
use their proxy votes.
Simon Miller
Chairman
7th November 2003
J.P. Morgan Fleming Asset Management (UK) Limited - Secretary
For further information, please contact:
Hilary Lowe........................................................0207 742 3274
JPMorgan Fleming Managed Income plc
Unaudited figures for the year ended 31 August 2003
Statement of Total Return
Year ended 31 August 2003 Year ended 31 August 2002
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Realised losses on investments - (118) (118) - (332) (332)
Net change in unrealised - 1,596 1,596 - (6,036) (6,036)
depreciation
Currency (losses)/gains on cash and - (1) (1) - 23 23
short term deposits held during the
year
Realised gain on currency hedge - 9 9 - - -
Unrealised loss on currency hedge - (86) (86) - - -
Other capital charges - (1) (1) - - -
Franked dividends 1,181 - 1,181 1,388 - 1,388
UK unfranked income 172 - 172 - - -
UK interest 183 - 183 219 - 219
Overseas dividends - - - 63 - 63
Overseas interest 99 - 99 157 - 157
Deposit interest 12 - 12 13 - 13
_______ ________ _______ ______ _______ ________
Gross return/(loss) 1,647 1,399 3,046 1,840 (6,345) (4,505)
Manager's remuneration (68) (68) (136) (87) (87) (174)
Other administrative expenses (164) - (164) (156) - (156)
Interest payable - - - (1) (1) (2)
_______ _______ _______ ______ _______ _______
Net return/(loss) before taxation 1,415 1,331 2,746 1,596 (6,433) (4,837)
Taxation (51) 14 (37) (69) 26 (43)
______ _______ _______ ______ _______ ______
Return/(loss) attributable to 1,364 1,345 2,709 1,527 (6,407) (4,880)
ordinary shareholders
Dividends paid on ordinary shares (741) - (741) (746) - (746)
Dividends payable on ordinary shares (742) - (742) (746) - (746)
______ _______ _______ ______ _______ ______
Transfer (from)/to reserves (119) 1,345 1,226 35 (6,407) (6,372)
Return/(loss) per ordinary share 4.00p 3.94p 7.94p 4.47p (18.74)p (14.27)p
JPMorgan Fleming Managed Income plc
Unaudited figures for the year ended 31 August 2003
BALANCE SHEET 31 August 31 August
2003 2002
#'000 #'000
Investments at valuation 26,552 25,311
Net current liabilities (180) (98)
______ _______
Total net assets 26,372 25,213
===== =====
Attributable to:
Ordinary shareholders - equity 26,359 25,200
Founder shareholders - non equity 13 13
Net asset value per ordinary share 77.4p 73.7p
CASH FLOW STATEMENT
2003 2002
#'000 #'000
Net cash inflow from operating activities 1,487 1,436
Net cash outflow from servicing of finance - (2)
Total tax paid (36) (78)
Net cash inflow/(outflow) from capital expenditure and financial 100 (202)
investment
Total equity dividends paid (1,487) (1,470)
Net cash (outflow)/ inflow from financing (67) 165
_______ ______
Decrease in cash for the period (3) (151)
===== ====
The financial information set out above does not constitute statutory accounts
as defined in Section 240 of the Companies Act 1985, but is derived from those
accounts. The comparative financial information is based on the statutory
accounts for the period ended 31 August 2002. The 2002 accounts, upon which the
auditors issued an unqualified opinion and did not contain a statement under
either section 237(2) or section 237 (3) of the Companies Act 1985, have been
delivered to the Registrar of Companies.
J.P. MORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED
7th November 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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