RNS Number:4501T
Henderson Electric&Gen Inv Trst PLC
19 December 2003
18 DECEMBER 2003
HENDERSON ELECTRIC AND GENERAL INVESTMENT TRUST PLC
("ELECTRIC AND GENERAL")
Unaudited results for the half-year ended 30 November 2003
Chairman's Statement
Review
The past six months saw global equity markets continue to recover as reflected
in a 9.1% gain by the FTSE All-World Index (sterling capital return). In the UK,
the FTSE All-Share Index made similar gains of 9.0% (sterling capital return).
The net asset value increased by 8.8% against the Trust's benchmark gain of 9.0%
whilst the share price rose 12.9% partially reflecting our efforts to reduce the
Trust's discount to its net asset value.
The last six months have been a period of continued recovery for the global
economy and equity markets. Low interest rates, tax cuts in the US and public
spending increases in the UK have combined to provide a major stimulus to
economic activity. This was nowhere more apparent than in the US. Japanese GDP
growth also looks set to come in well above expectations for the year and in
Europe and the UK third quarter GDP numbers beat earlier expectations.
As the economic and corporate environment improves, we continued to focus on
growth stocks, and increased the Trust's exposure to Japan. The Trust maintained
a bias towards the growth orientated technology sector throughout the period,
particularly within the US.
Managers
On 27 August 2003 the Company announced the appointment of Richard Carlyle as
manager assuming overall responsibility for the Company's investments. Mr
Carlyle joined Henderson Global Investors in 1993 as a Director of the UK
Institutional Funds and is co head of global equities.
Richard Smith continues to manage the UK portfolio for Henderson Electric and
General Investment Trust plc. Additionally, in accordance with current
recommended corporate governance guidelines, Mr Smith did not seek re-election
at the Annual General Meeting, which was held on 18 September 2003.
Share Buy-Backs
Since 31 May 2003 the Company has made market purchases for cancellation of
1,116,750 ordinary shares. The shares were purchased at an average discount to
net asset value of 17.3% and the aggregate cash consideration paid by the
Company for the shares, including stamp duty and commission, was #2,698,000.
Prospects
We believe calendar 2004 will be another positive year for the global economy
and equity markets. Strong output growth is likely to boost corporate earnings
and will provide scope for equity markets to rise further. The sensitivity of
Asia to global demand is likely to make the region's equity markets outperform
hence our overweight in Japan and Pacific Rim economies relative to our
benchmark. Stockpicking will be key in 2004 as the market becomes more
discerning of quality companies. As the outlook for equity markets remains
healthy, we will continue to select stocks with a growth bias.
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HENDERSON ELECTRIC AND GENERAL INVESTMENT TRUST PLC
("ELECTRIC AND GENERAL")
Unaudited results for the half-year ended 30 November 2003
Statement of Total Return (incorporating the revenue account)
for the half-year ended 30 November 2003
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
30 November 2003 30 November 2002 31 May 2003
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
--------- -------- -------- -------- -------- -------- -------- -------- --------
Total capital gains/
(losses) on investments - 20,212 20,212 - (61,931) (61,931) - (63,222) (63,222)
Income from fixed asset
investments - 2,809 2,209 - 2,209 5,266 - 5,266 2,809
Other interest receivable
and similar income 191 - 191 560 - 560 1,164 - 1,164
-------- -------- -------- -------- -------- -------- -------- -------- --------
Gross revenue and capital 3,000 20,212 23,212 2,769 (61,931) (59,162) 6,430 (63,222) (56,792)
gains/(losses)
Management fee (295) (295) (590) (339) (339) (678) (664) (664) (1,328)
Other administrative (213) - (213) (230) - (230) (447) - (447)
expenses
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss) on
ordinary activities before
interest payable and
taxation 2,492 19,917 22,409 2,200 (62,270) (60,070) 5,319 (63,886) (58,567)
Interest payable (131) (392) (523) (99) (298) (397) (246) (739) (985)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss) on
ordinary activities before 2,361 19,525 21,886 2,101 (62,568) (60,467) 5,073 (64,625) (59,552)
taxation
Taxation on net return/
(loss) on ordinary (176) 102 (74) (214) 140 (74) (518) 318 (200)
activities
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net return/(loss)
attributable to ordinary 2,185 19,627 21,812 1,887 (62,428) (60,541) 4,555 (64,307) (59,752)
shareholders
Dividend declared
Overprovision 3 - 3 1 - 1 1 - 1
Interim of 1.85p (2002: (1,621) - (1,621) (1,651) - (1,651) (1,651) - (1,651)
1.85p)
Final (year ended 31 May
2003: 2.55p) - - - - - - (2,258) - (2,258)
-------- -------- -------- -------- -------- -------- -------- -------- --------
(1,618) - (1,618) (1,650) - (1,650) (3,908) - (3,908)
Transfer to/(from) 567 19,627 20,194 237 (62,428) (62,191) 647 (64,307) (63,660)
reserves
======== ======== ======== ======== ======== ======== ======== ======== ========
Return/(loss) per ordinary 2.48p 22.27p 24.75p 2.12p (69.97)p (67.85)p 5.11p (72.15)p (67.04)p
share
The revenue columns of this statement represent the revenue accounts of the
Company.
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HENDERSON ELECTRIC AND GENERAL INVESTMENT TRUST PLC
("ELECTRIC AND GENERAL")
Unaudited results for the half-year ended 30 November 2003
Balance Sheets
as at 30 November 2003
(Unaudited) (Unaudited) (Audited)
30 November 30 November 31 May
2003 2002 2003
#'000 #'000 #'000
----------------- ----------------- ----------------
Fixed asset investments
Listed in UK 130,753 112,200 119,503
Listed outside UK 125,098 102,995 111,221
Open Ended Investment Company 1,818 1,372 1,501
Unquoted Investments at directors' valuation 1,226 914 965
---------- --------- ----------
258,895 217,481 233,190
---------- --------- ----------
Current assets
Debtors 5,204 1,608 1,990
Cash at bank and short term deposits 5,827 41,259 28,464
---------- ---------- ----------
11,031 42,867 30,454
Creditors: amounts falling due within one year (8,832) (9,120) (14,943)
---------- ---------- ----------
Net current assets 2,199 33,747 15,511
---------- ---------- ----------
Total assets less current liabilities 261,094 251,228 248,701
Creditors: amounts falling due after more than one
year (7,000) (12,246) (12,103)
---------- ---------- ----------
Total net assets 254,094 238,982 236,598
========== ========== ==========
Capital and reserves
Called-up share capital 4,381 4,461 4,437
Reserves - non distributable:
Share premium 19,937 19,937 19,937
Capital redemption reserve 326 246 270
Realised reserve 220,903 234,364 225,252
Unrealised reserve 240 (27,356) (21,038)
Revenue reserve 8,307 7,330 7,740
---------- ---------- ----------
Equity Shareholders' funds 254,094 238,982 236,598
========== ========== ==========
Net asset value per ordinary share 289.97p 267.86p 266.60p
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HENDERSON ELECTRIC AND GENERAL INVESTMENT TRUST PLC
("ELECTRIC AND GENERAL")
Unaudited results for the half-year ended 30 November 2003
Cash Flow Statement
for the half-year ended 30 November 2003
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
30 November 2003 30 November 2002 31 May 2003
#'000 #'000 #'000
------------------ ---------------- -----------------
Net cash inflow from operating activities 2,449 1,824 3,807
Interest paid (595) (468) (983)
Tax recovered 44 43 54
Net cash (outflow)/inflow from financial investments (7,246) 15,598 (3,273)
Equity dividends paid (2,256) (2,096) (3,747)
Cash withdrawn from/(placed on) short term deposit 15,117 (11,039) (6,092)
---------- ---------- ----------
Net cash inflow/(outflow) before financing 7,513 3,862 (10,234)
Net cash (outflow)/inflow from financing (13,612) (61) 4,827
---------- ---------- ----------
(Decrease)/increase in cash (6,099) 3,801 (5,407)
========== ========== ==========
Reconciliation of operating revenue to net cash inflow from
operating activities
Net return before interest payable and taxation 2,492 2,200 5,319
Decrease/(increase) in accrued income 418 81 (542)
Decrease in other debtors 53 7 17
Decrease in creditors (66) (40) (66)
Scrip dividends included in investment income (63) - -
Tax on unfranked investment income (90) (85) (257)
Management fee charged to capital (295) (339) (664)
---------- ---------- ----------
Net cash inflow from operating activities 2,449 1,824 3,807
========== ========== ==========
Reconciliation of net cash flow to movement in net funds
(Decrease)/increase in cash as above (6,099) 3,801 (5,407)
Cash outflow/(inflow) from loans repaid/drawn down 10,914 - (5,803)
Cash (inflow)/outflow from movement in liquid resources (15,117) 11,039 6,092
Exchange difference (1,174) 141 1,964
---------- ---------- ----------
Movement in net debt/funds (11,476) 14,981 (3,154)
Net funds at start of period 5,633 8,787 8,787
---------- ---------- ----------
Net (debt)/funds at end of period (5,843) 23,768 5,633
========== ========== ==========
Represented by:
Cash 5,827 21,195 13,347
Short term deposits - 20,064 15,117
Debt due within one year (4,670) (5,245) (15,831)
Debt due after more than one year (7,000) (12,246) (7,000)
---------- ---------- ----------
(5,843) 23,768 5,633
========== ========== ==========
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HENDERSON ELECTRIC AND GENERAL INVESTMENT TRUST PLC
("ELECTRIC AND GENERAL")
Unaudited results for the half-year ended 30 November 2003
NOTES
1. Return/loss per ordinary share
Revenue return per ordinary share is calculated by dividing the net revenue
return available to ordinary shareholders of #2,185,000 (half-year ended
30 November 2002: #1,887,000 and year ended 31 May 2003: #4,555,000) by the
weighted average number of shares in issue of 88,132,352 (half-year ended
30 November 2002: 89,225,042 shares in issue throughout the period and year
ended 31 May 2003: weighted average number of shares in issue of
89,124,714).
Capital return per ordinary share is calculated by dividing the net capital
gain attributable to ordinary shareholders of #19,627,000 (half-year ended
30 November 2002: #62,428,000 loss and year ended 31 May 2003: 64,307,000
loss) by the weighted average number of shares in issue of 88,132,352
(half-year ended 30 November 2002: 89,225,042 shares in issue throughout
the period and year ended 31 May 2003: weighted average number of shares in
issue of 89,124,714).
2. Comparative information
The figures and financial information for the year ended 31 May 2003 are an
extract from the latest published accounts and do not constitute statutory
accounts for that year. Those accounts have been delivered to the
Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either section 237(2) or
237(3) of the Companies Act 1985. The interim accounts have been neither
audited nor reviewed by the auditors.
3. Interim Dividend
An interim dividend of 1.85p (2002: 1.85p) per ordinary share has been
declared payable on 2 February 2004 to shareholders on the register on 16
January 2004. The Company's shares will be quoted ex-dividend on 14 January
2004.
- ENDS -
For further information, please contact:
Richard Carlyle
Henderson Electric and General Investment Trust plc
Telephone: 020 7818 4303
Stephen Westwood
Head of Investment Trusts, Henderson Global Investors
Telephone: 020 7818 5517
Stephen Phillips
Investor Relations Manager, Henderson Global Investors
Telephone: 020 7818 6417
This information is provided by RNS
The company news service from the London Stock Exchange
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