Final Results
October 14 2003 - 12:53PM
UK Regulatory
RNS Number:9011Q
Britannic UK Income Securities PLC
14 October 2003
Britannic UK Income Securities PLC
14 October 2003
Announcement Begins
Chairman's Statement
Britannic UK Income Securities plc and its holding Company, Britannic UK Income
Trust plc were launched on 10 August 2001. The Group's objectives are to provide
Guaranteed Income Shareholders with a predetermined monthly income and final
capital entitlement, to provide Ordinary Shareholders with a high level of
income payable quarterly and the potential for income and capital growth and to
provide Zero Dividend Preference Shareholders with a predetermined final capital
entitlement.
At the time of launch the Zero Dividend Preference Shares offered shareholders
the prospect of capital growth equivalent to 9 per cent per annum on the placing
price of 100p, but no right to income. This rate of capital growth means that
the repayment value of a Zero Dividend Preference Share should eventually,
subject to adequate assets being available, reach 153.9p on 11 August 2006. It
is not possible in the current market conditions to predict whether full
entitlement due to the zero dividend preference Shareholders in August 2006 will
be achieved.
On 10 August 2001 a non-interest bearing loan of #45 million was granted to the
holding Company Britannic UK Income Trust plc. In addition, Britannic UK Income
Trust plc has entered into a subscription agreement with the Company, whereby
Britannic UK Income Trust plc has agreed to contribute the necessary funds to
the Company to ensure that there will be sufficient funds on 11 August 2006 to
satisfy the final capital entitlement of the holders of the Zero Dividend
Preference Shares. Outside of a liquidation, this contribution shall only be
made to the extent that this can be funded out of distributable profits of
Britannic UK Income Trust plc or the proceeds of a fresh issue of shares by
Britannic UK Income Trust plc or any subsidiary. The performance of the
investment portfolio held by Britannic UK Income Trust plc is outlined in its
Chairman's Statement and Report of the Manager in the Annual Report and
Accounts.
During the period under review the cover for the Zero Dividend Preference shares
is shown below:
10 August 2003 10 August 2002
Group's net assets (#m) 86.43 106.00
Repayment entitlement of guaranteed issued 75.00 75.00
shares issued by Britannic UK Income Trust
plc (#m)
Repayment entitlement of ZDP shares (#m) 69.25 69.25
Cover 0.17 0.45
At 10 August 2003 the net assets of the Group, after deduction of the repayment
entitlement of the prior ranking Guaranteed Income Shares issued by Britannic UK
Income Trust plc, are insufficient to cover the final repayment entitlement of
the Zero Dividend Preference Shares.
David MacLellan
Chairman
profit and loss account
For the year ended 10 August 2003 For the period 18 June 2001 to 10 August 2002
#'000 #'000
Investment 2 25
income
Provision in (21,467) (20,563)
respect of ------ -------
amounts due
from parent
undertaking
Loss on (21,465) (20,538)
ordinary
activities
before
taxation
Taxation - -
------ -------
Loss on (21,465) (20,538)
ordinary
activities
after
taxation
Non-equity (4,417) (4,052)
appropriation ------ -------
Retained net (25,882) (24,590)
deficit for the ====== =======
period
Loss per 518 492
Ordinary share
(#'000)
balance sheet
As at 10 August 2003 As at 10 August 2002
#'000 #'000
Fixed assets
Investments 10 10
Current assets
Debtors - amounts 50 50
due within one
year
Debtors - amounts 11,430 28,479
due in more than
one year
Cash at bank and 26 25
in hand -------- --------
Net assets 11,516 28,564
======== ========
Capital and
reserves
Called-up share 51 51
capital
Share premium 44,999 44,999
account
Redemption 8,469 4,052
reserve
Profit and loss (42,003) (20,538)
account -------- --------
11,516 28,564
======== ========
Shareholders'
funds
- Equity (41,954) (20,488)
- Non-equity 53,470 49,052
Net asset value 25.60 63.29
per non-equity
share (p)
(Articles basis)
cash flow statement
Year ended 10 August 2003 Period 18 June 2001 to 10 August 2002
#000 #000
net cash inflow from 1 25
operating
activities
capital expenditure
and financial
investment
purchases of - (10)
investments
sales of - (44,990)
investments --------- ----------
Net cash inflow/ 1 (44,975)
(outflow) from
capital expenditure
and financial
investment
financing
issue of Zero - 45,000
Dividend Preference --------- ----------
shares
increase in cash 1 25
========= ==========
Notes:
1. The profit and loss account, balance sheet and cashflow statement set
out above do not represent full financial statements in accordance with Section
240 of the Companies act 1985. The financial statements for the period to 10
August 2003 contain an unqualified audit report and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting which will
be held at the Company's registered office on 10 November 2003.
2. The same accounting policies have been applied in preparing the
financial statements throughout the period.
3. Copies of the Annual Report will be posted to shareholders on 17
October 2003 and will be available to the public at Britannic Investment
Managers Limited, Britannic Court, 50 Bothwell St, Glasgow G2 6HR.
For further information contact:
Donna Reid
Britannic Investment Managers Limited
Britannic Asset Management Press Office
0141-222-8257
0141-222-8225/6/7
Announcement Ends
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FFWFMLSDSELS