Interim Results
November 17 2003 - 11:50AM
UK Regulatory
RNS Number:1649S
Second London American Trust PLC
17 November 2003
SECOND LONDON AMERICAN TRUST PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS
The Directors announce the statement of consolidated results for the six months
ended 30 September 2003 as follows:
Interim Results
The results for the six months to 30 September 2003 show a profit after tax and
minority interests of #6,000 (six months to 30 September 2002 : deficit of
#142,000).
No interim dividend is proposed. A capital repayment of 2.25p per share will be
made on 28 November 2003 to shareholders on the register of members at the close
of business on 21 November 2003.
Manager's Review
The net asset value of the Company at 30 September 2003 was 8.6 pence per share
compared to 7.8 pence at 31 March 2003. In the six months to the end of
September proceeds of $3.3 million were realised in the Hambrecht & Quist London
Ventures (HQLV) portfolio. The majority, or $2.3 million, of these proceeds was
from the sale of the remaining position in Made2Manage Systems, Inc.; the sale
price represented a $1.3 million gain over original cost. Other proceeds during
the period were from the sale of 68% of the Select Comfort Corporation holding
for proceeds of approximately $959,000, a gain of $776,000 over cost, and from
the further sale of a small part of the Castelle position which realised
approximately $71,000. Since year-end, a further sale of Select Comfort has
been made amounting to $234,000.
In the first half of the fiscal year the HQLV portfolio increased in value by
$2.1 million, or approximately 1.4 pence per share including minority interests.
This gain was due to the increase in the value of Made2Manage up to the time
of its sale and to a $0.8 million increase in the value of the Select Comfort
holding. After its results slumped in the 1999-2001 period and following
several unprofitable quarters, Select Comfort, a manufacturer and marketer of
air beds, has effected a major turnaround with new management, cost cutting,
product repositioning, and a new marketing strategy. The company has recently
reported its ninth successive profitable quarter, exceeding analysts' estimates,
and the price of its shares, which reached a low of $0.50 in early 2001, has
climbed to a recent high of $31.00.
At 30 September 2003 the equity securities in the HQLV portfolio represented 54%
of the assets of the Company; the other assets consisted of cash and short term
government bills, comprising 31% of the assets, and the holding in the Landorne
coal company (15% of assets).
Outlook
H&Q London Ventures is a co-defendant in a lawsuit in Florida, USA, where the
plaintiffs are alleging a fraudulent stock transfer in a holding of the Trust,
Calyx & Carolla, which was acquired by Gerald Stevens, Inc. in 1999. In the
view of the Directors, this action is frivolous and will be vigorously defended.
No provision for any costs related to this have been made in these accounts.
Excluding cash, the two largest positions, Sinogen International Inc. and
Landorne, constituted approximately 78% of the Company's assets at 30 September
2003. Sinogen continues to make good progress while Landorne through its coal
mining interests has benefited from increased production and firm prices.
Neither of these companies are quoted, and the Company's investment in them is
unlikely to be realised in the short term. This concentration means that
significant future repayments to shareholders will not be made until these
investments can be sold.
However, the Board will continue to evaluate any possibilities to achieve
disposals at reasonable prices, and is hopeful that the recent signs of economic
improvement in several of the major world markets may lead to opportunities for
realisations in the intermediate term.
17 November 2003
CONSOLIDATED STATEMENT OF TOTAL RETURN
(*incorporating the revenue account) for the six months ended 30 September
2003 2002
(Unaudited) (Unaudited)
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Net gains/(losses) on - 982 982 - (2,546) (2,546)
investments
Exchange differences on - (76) (76) - (12) (12)
capital items
Dividends and interest 134 - 134 11 - 11
Administration and investment
management fees (53) (27) (80) (82) (33) (115)
Operating expenses (83) - (83) (81) - (81)
(Loss)/gain on ordinary
activities before and after
tax
for the period (2) 879 877 (152) (2,591) (2,743)
Minority interest 8 (142) (134) 10 267 277
Gain/(loss) attributable to
Ordinary shareholders 6 737 743 (142) (2,324) (2,466)
Dividend - - - - - -
Transfer to/(from) reserves 6 737 743 (142) (2,324) (2,466)
pence pence pence pence pence pence
Basic loss per
Ordinary share 0.01 0.80 0.81 (0.16) (2.53) (2.69)
* The revenue column of this statement is the consolidated revenue account of
the Group.
The accounts have been prepared using accounting standards and policies adopted
at the previous year end.
All revenue and capital items in the above statement derive from continuing
operations.
SUMMARISED CONSOLIDATED BALANCE SHEETS
as at 30 September
30 September 2003 31 March 2003 30 September 2002
(Unaudited) (Audited) (Unaudited)
#'000 #'000 #'000
Fixed assets
Investments 6,324 7,214 7,419
Films and film rights 25 25 -
Total investments 6,349 7,239 7,419
Current assets
Debtors 16 11 23
Cash at bank 2,092 789 524
2,108 800 547
Creditors: amounts falling due
within one year (60) (519) (141)
Net current assets 2,048 281 406
Total assets less current liabilities 8,397 7,520 7,825
Capital and reserves
Called-up share capital 917 917 917
Capital repayment reserve 4,057 4,057 4,057
Capital reserve - realised 2,722 2,722 8,150
- unrealised 301 (436) (5,591)
Revenue reserve (96) (102) (70)
Equity shareholders' funds 7,901 7,158 7,463
Minority interest 496 362 362
8,397 7,520 7,825
pence pence pence
Net asset value per Ordinary Share: 8.6 7.8 8.1
CONSOLIDATED STATEMENT OF CASHFLOWS
for the six months ended 30 September Six months to 30 Six months to 30
September 2003 September 2002
(Unaudited) (Unaudited)
#'000 #'000
Net cash outflow from operating activities (68) (244)
Investing activities
Purchase of fixed asset investments - -
Purchase of Treasury Bills (2,495) (2,940)
Proceeds from sale of fixed asset investments 2,032 207
Proceeds from sale of Treasury Bills 1,974 3,633
Net cash inflow from investing activities 1,511 900
Equity dividends paid (137) (229)
Net cash inflow before financing 1,306 427
Financing
Repayment of capital to shareholders - (917)
Repayment of capital to minority interest - (54)
Net cash outflow from financing - (971)
Increase/(decrease) in cash 1,306 (544)
Notes:
1. The figures for the six months to 30 September 2003 have been prepared
on a basis consistent with the accounting policies adopted in the audited
financial statements for the year ended 31 March 2003. The Trust has adopted
the 2003 Statement of Recommended Practice ("SORP") for Investment Trust
Companies, which has had no material effect on these financial statements.
2. The consolidated statement of total return for the six months ended 30
September 2003 includes the financial statements of the Company and its
subsidiary undertakings for the whole period. The comparative figures include
the results of all the subsidiaries apart from London Trust Productions Limited
which has been only consolidated into the group results since 23 December 2002.
3. Return per Ordinary Share figures have been calculated using 91,689,911
(six months to 30 September 2002: 91,689,911) Ordinary Shares being the number
of Shares in issue throughout the periods covered.
4. The consolidated net asset value per Share figures have been calculated
on net assets at 30 September 2003 of #7,901,000 (31 March 2003: #7,158,000 and
30 September 2002: #7,463,000) and on 91,689,911 Ordinary Shares in issue (31
March 2003 and 30 September 2002: 91,689,911).
5. The financial information shown in this preliminary announcement does
not constitute full statutory accounts as defined in Section 240 of the
Companies Act 1985. The financial information for the six months ended 30
September 2002 and 30 September 2003 has been neither reviewed nor audited.
The information for the year ended 31 March 2003 has been extracted from the
latest published audited financial statements, which have been filed with the
Registrar of Companies. The report of the auditors on those accounts contained
no qualification or statement under section 237 (2) or (3) of the Companies Act
1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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