Final Results
March 27 2003 - 12:32PM
UK Regulatory
To: Stock Exchange For
immediate release
27 March 2003
Martin Currie Pacific Trust plc
Annual results for the year ended 28 February 2003
This has been a disappointing year for all equity investors. Markets
have experienced what is on several counts the worst bear market since
the 1930's. The excess valuations of the IT boom of the 1990's are a
faded memory but the effects of global manufacturing over-capacity have
yet to be washed out of the system. Consumer confidence in the US,
hitherto the main prop of the world economy, is being battered by a
number of worries, particularly the war in Iraq. Investors remain
nervous.
Although the Asian region has performed better than most world markets,
the company has not been immune and our benchmark index fell by 20.5%.
The company's net asset value fell by 25.2%, and improvement is clearly
needed. Steps have been taken to improve on this performance, with John
Millar having recently assumed overall responsibility for the company's
investments and a good start has been made.
Our results have, in part, been due to the existence of borrowings. Poor
stock selection played its part in our underperformance and it is
apparent that its importance outweighs that of asset allocation in the
increasingly inter-related economies of Asia. The managers will be
reflecting this change of emphasis in future.
The much-publicised problems of the split capital investment trusts have
given rise to important proposals on investment trust corporate
governance. We shall be responding to these proposals in the hope of
ensuring that any imposition of new rules by the Financial Services
Authority does not restrict the effectiveness of the management of what
remains one of the best vehicles for private investment - the investment
trust. Thorough disclosure of investment policy, its actual
implementation and portfolio details remain our preferred route to the
company's corporate governance.
The directors are recommending a final dividend of 1.00p per share.
Subject to approval by the shareholders at the annual general meeting,
this will be paid on 4 July 2003.
I am sorry to report that after many years of service Sir David Thomson
and Lord Wilson of Tillyorn will be retiring following the completion of
the forthcoming annual general meeting. We thank them for their
invaluable contributions over the years. Your board is currently seeking
to appoint up to two new non-executive directors as soon as practicable,
and the selection process has involved the use of external consultants.
The trust's discount has been volatile over the 12 months. Having
widened out to a peak of 24%, the discount ended the year at 17%. The
company did not buy-in any shares during the period, as the effect of
doing so would have adversely affected the company's expense ratio and
the liquidity of our shares. However, we would not exclude a buyback
option in the right circumstances.
Despite a very tough environment for markets worldwide, there are some
reasons for optimism within Asia. Currently China is attracting huge
amounts of foreign direct investment. This, together with vast
investment in infrastructure, is helping to generate demand among
consumers. Accession to the WTO underscores the country's importance to
the region.
A great deal of hard work and effort will be required to take full
advantage of the future opportunities that we perceive. Improved global
market sentiment will probably take a while to develop given present
uncertainties.
- ends -
For further information, please contact:
John Millar or Michael Woodward
Martin Currie Investment Management Ltd 0131 229 5252
jmillar@martincurrie.com/mwoodward@martincurrie.com
Unaudited statement of total return (incorporating revenue account)
for the year ended 28 February 2003
Revenue Capital Total
�000 �000 �000
Losses on - realised - (7,885) (7,885)
investments
- unrealised - (6,574) (6,574)
Currency losses - (408) (408)
Income - unfranked 1,343 - 1,343
Investment management fee (192) (384) (576)
Other expenses (388) - (388)
Net return before finance costs and 763 (15,251) (14,488)
taxation
Interest payable and similar (74) (148) (222)
charges
Return on ordinary activities 689 (15,399) (14,710)
before taxation
Taxation on ordinary activities (261) 221 (40)
Return on ordinary activities after 428 (15,178) (14,750)
taxation for the financial year
Dividends in respect of equity (428) - (428)
shares (1.00p per share)
Transfer from reserves - (15,178) (15,178)
Return per ordinary share 1.00p (35.46p) (34.46p)
* The revenue column of this statement is the profit and loss account of
the company. All revenue and capital items in the above statement derive
from continuing operations. No operations were acquired or discontinued
in the year.
The directors recommend a dividend of 1.00p per share to be paid on 4
July 2003 to shareholders on the register on 30 May 2003.
Audited statement of total return (incorporating revenue account)
for the year ended 28 February 2002
Revenue Capital Total
�'000 �'000 �'000
Losses on - realised - (8,415) (8,415)
investments
- unrealised - (1,056) (1,056)
Currency - 1,181 1,181
gains
Income - unfranked 1,559 - 1,559
Investment management fee (197) (394) (591)
Other expenses (324) - (324)
Net return before finance costs 1,038 (8,684) (7,646)
and taxation
Interest payable and similar (76) (152) (228)
charges
Return on ordinary activities 962 (8,836) (7,874)
before taxation
Taxation on ordinary activities (305) 107 (198)
Return on ordinary activities 657 (8,729) (8,072)
after taxation for the financial
year
Dividends in respect of equity (642) - (642)
shares (1.50p per share)
Transfer to/(from) reserves 15 (8,729) (8,714)
Return per ordinary share 1.53p (20.39p) (18.86p)
Balance sheet
28 February 2003 28 February 2002
Unaudited Audited
�000 �000 �000 �000
Fixed assets
Listed on stock 49,386 65,640
exchanges abroad
Unlisted at directors' 2,097 3,403
valuation
51,483 69,043
Current assets
Debtors 350 2,766
Cash at bank and in hand 5,757 2,925
6,107 5,691
Creditors
Amounts falling due (1,237) (3,361)
within one year
Net current assets 4,870 2,330
Total assets less 56,353 71,373
current liabilities
Creditors
Amounts falling due (11,358) (11,200)
after one year
Net assets 44,995 60,173
Capital and reserves
Called up ordinary 21,401 21,401
capital
Share premium account 3,886 3,886
Capital redemption 1,162 1,162
reserve
Capital reserve-realised 21,782 30,386
Capital reserve- (5,288) 1,286
unrealised
Revenue reserve 2,052 2,052
Total shareholders' 44,995 60,173
funds
Net asset value per 105.1p 140.6p
ordinary share
Statement of cash flow
Year to 28 Year to 28
February 2003 February 2002
Unaudited Audited
�000 �000 �000 �000
Operating activities
Net dividends and 1,018 1,370
interest received from
investments
Interest received from 150 102
deposits
Investment management (590) (617)
fee
Fees and expenses paid (72) (79)
to and on behalf of
directors
Bank charges (79) (46)
Net taxation recovered 73 35
Other cash payments (282) (224)
Net cash inflow from 218 541
operating activities
Servicing of finance
Interest paid (222) (232)
Net cash outflow from (222) (232)
servicing of finance
Taxation
Net corporation tax (69) -
paid
Taxation paid (69) -
Capital expenditure and
financial investment
Payments to acquire (77,505)
investments (74,390)
Receipts from disposal 81,302 76,561
of investments
Net cash inflow from 3,797 2,171
capital expenditure and
financial investment
Equity dividends paid (642) (428)
Net cash infow before 3,082 2,052
financing
Financing
Increase in short term 1,529 -
borrowings
Decrease in short-term (1,529) (1,431)
borrowings
Cash outflow from - (1,431)
financing
Increase in cash for 3,082 621
the period