RNS Number:7739R
Resources Investment Trust PLC
06 November 2003
RESOURCES INVESTMENT TRUST PLC
Preliminary Results for the year to 30 September 2003
The Directors of Resources Investment Trust PLC announce the preliminary results
for the year to 30 September 2003.
Financial Highlights
30 September 2002 30 September 2003 % change
Net Asset Value 85.24p 107.52p 26.2
Share Price 61.5p 74.5p 21.2
Chairman's Statement
Year to 30 September 2003
Your Company has continued to perform well since the Interim Report and, for the
full financial year, the net asset value shows a 26.2% improvement. This is
substantially ahead of the 12.6% gain in the FTSE All-Share Index over the same
period but disappointing compared to the 45.9% return in the sector specialist
benchmark, the HSBC World Mining Index. However, it should be remembered that
the latter is a composite of the world's leading large capitalization mining
stocks whereas your Company's investment strategy is to focus on smaller
capitalization resource stocks, including oil and gas. In addition, the
performance of the HSBC World Mining Index has been buoyed by a number of high
profile corporate transactions during the year.
As we mentioned in the Interim Report, the military conflict in Iraq at the
beginning of the year created a period of uncertainty in equity markets.
However, following the end of the conflict investor sentiment began to improve.
Investor confidence was also helped by early indications of a global economic
recovery and a bottoming out of the manufacturing downturn. These factors,
coupled with a notable increase in demand for raw materials from China, have led
to an improvement in many commodity prices. The gold price, which has been a
major beneficiary of the weaker US dollar, has performed well.
Some 50% of the portfolio is currently committed to the gold sector, making it
our largest investment sector, followed by 'Other Mining' at 26% and 'Oil and
Gas' at 13%. While we acknowledge that your Company's focus on smaller
capitalization resource stocks increases its volatility, we continue to believe
that this area of the market offers the best relative value within the sector.
The Company has decided that it does not intend to invest more than 15% of its
gross assets in other investment companies (including investment trusts), but
currently the Company holds no such investments.
James Dawnay
Chairman
6 November 2003
Statement of Total Return (incorporating the revenue account)
For the year ended 30 September 2003
Year ended 30 September Period 24 January 2002 to 30
2003 September 2002
(unaudited) (audited)
Revenue Capital Total Revenue Capital Total
# # # # # #
Total capital gains from - 5,279,004 5,279,004 - 88,975 88,975
investments
Income from fixed asset 14,446 - 14,446 135 - 135
investments
Other interest receivable 3,008 - 3,008 3,586 - 3,586
Gross revenue and capital gains 17,454 5,279,004 5,296,458 3,721 88,975 92,696
Management fee - (305,252) (305,252) (47,659) (190,638) (238,297)
Performance fee - - - - (1,495,852) (1,495,852)
Administrative expenses (230,720) - (230,720) (188,172) - (188,172)
Net (loss)/gain on ordinary (213,266) 4,973,752 4,760,486 (232,110) (1,597,515) (1,829,625)
activities before interest
payable and taxation
Interest payable - (240,558) (240,558) (31,004) (124,015) (155,019)
Net (loss)/gain on ordinary (213,266) 4,733,194 4,519,928 (263,114) (1,721,530) (1,984,644)
activities before taxation
Taxation on ordinary activities - - - - - -
Net (loss)/gain on ordinary (213,266) 4,733,194 4,519,928 (263,114) (1,721,530) (1,984,644)
activities after taxation
Net (loss)/gain attributable to (213,266) 4,733,194 4,519,928 (263,114) (1,721,530) (1,984,644)
the Ordinary shares
Dividends
Ordinary shares - - - - - -
Transfer (from)/to reserves (213,266) 4,733,194 4,519,928 (263,114) (1,721,530) (1,984,644)
(Loss)/gain per Ordinary share
- Basic (1.05p) 23.33p 22.28p (2.91p) (19.01p) (21.92p)
- Diluted - 21.58p 20.53p - - -
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued during the year.
Balance Sheet
As at 30 September 2003
30 September 30 September
2003 2002
(unaudited) (audited)
# #
Fixed assets
Investments 24,908,550 21,088,886
24,908,550 21,088,886
Current assets
Debtors 217,858 426,988
Cash at bank 26,223 301,582
244,081 728,570
Creditors : amounts falling due within one year (1,265,109) (2,500,005)
Net current liabilities (1,021,028) (1,771,435)
Total assets less current liabilities 23,887,522 19,317,451
Creditors : amounts falling due after one year
Convertible Unsecured Loan Stock (2,070,762) (2,021,766)
Total net assets 21,816,760 17,295,685
Capital and reserves
Called up share capital 1,014,572 1,014,572
Share premium account 18,266,904 18,265,757
Other capital reserves - Realised reserve (599,026) (1,707,042)
- Unrealised reserve 3,610,690 (14,488)
Revenue reserve (476,380) (263,114)
Shareholders' funds 21,816,760 17,295,685
Net asset value per Ordinary share 107.52p 85.24p
Diluted net asset value per Ordinary share - -
Cashflow Statement
For the year ended 30 September 2003
30 September 30 September
2003 2002
(unaudited) (audited)
# #
Investment income received 6,503 (7,123)
Deposit and other interest received 2,146 3,413
Investment management fees paid (350,325) (208,267)
Performance fees paid (1,003,402) (676,875)
Other cash receipts/payments 214,028 (346,013)
Net cash outflow from operating activities (1,131,050) (1,234,865)
Interest paid on bank overdraft (62,036) (38,996)
Interest paid on Convertible Unsecured Loan Stock (133,800) (76,614)
Net cash outflow from servicing of finance (195,836) (115,610)
Net tax paid - -
Purchases of investments (2,747,841) (4,921,574)
Sales of investments 4,032,459 4,716,687
Realised currency losses (8,327) (84,299)
Net cash inflow/(outflow) from capital expenditure and 1,276,291 (289,186)
financial investment
Equity dividends paid - -
Net cash (outflow) before financing (50,595) (1,639,661)
Proceeds from share issues - 198,000
Preference shares redeemed - (50,000)
Share issue expenses paid (109,180) (1,473,303)
Bank overdraft (115,584) 1,273,361
Proceeds from issue of Convertible Unsecured Loan Stock - 1,993,185
Net cash (outflow)/inflow from financing (224,764) 1,941,243
(Decrease)/increase in cash (275,359) 301,582
Reconciliation of net cash inflow to movement in net debt
(Decrease)/increase in cash (275,359) 301,582
Net drawdown of loans 115,584 (1,273,361)
Debt due on Convertible Unsecured Loan Stock (48,996) (2,021,766)
Movement in net debt for the year/period (208,771) (2,993,545)
Net debt at beginning of year/period (2,993,545) -
Net debt at 30 September (3,202,316) (2,993,545)
Notes
The financial information contained within the preliminary results announcement
does not constitute the Company's statutory financial statements as defined in
section 240 of the Companies Act 1985 for the year ended 30 September 2003 but
it is derived from those financial statements. The statutory financial
statements for the year ended 30 September 2003 have not yet been approved,
audited or delivered to the Registrar of Companies.
The statutory financial statements for the period ended 30 September 2002 have
been delivered to the Registrar of Companies and received an audit report which
was unqualified and did not contain statements under section 237 (2) or (3) of
the Companies Act 1985.
The Report and Accounts will be posted to shareholders. Copies may be obtained
during normal business hours from the Company's registered office, The Registry,
34 Beckenham Road, Beckenham, Kent, BR3 4TU.
By order of the Board
Capita IRG Trustees Limited, Secretary
6 November 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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