Interim Results
July 05 2005 - 12:05PM
UK Regulatory
RNS Number:5155O
Jupiter Second Split Trust PLC
05 July 2005
JUPITER SECOND SPLIT TRUST PLC
Preliminary announcement of the unaudited results for the six months to 30th
April 2005
CHAIRMAN'S STATEMENT
This is the first report to shareholders since the launch of the Company on 1st
November 2004. Net assets rose by 1.7% during the six months to 30th April 2005,
after adjusting for an issue of 1,046,418 additional packaged units during the
period. This compares with a rise of 3.5% in the benchmark index. Revenue before
tax for the six months was #129,000. No interim dividend has been declared. Any
material net revenue attributable to the current year will be paid as a dividend
in December 2005.
Performance of the Company's assets fell into two distinct periods. In the
period to early March substantial outperformance resulted from a strong emphasis
within the portfolio on oil and mining shares. However, a substantial change in
market sentiment at the beginning of March towards these sectors and especially
towards smaller capitalization issues within them, caused this outperformance to
reverse into underperformance. Risk aversion, especially towards emerging
markets, became more prevalent, although somewhat surprisingly in our opinion.
There were some setbacks in energy and commodity prices, although these were
minor in the context of rises in the previous years and have since been largely
reversed. Moreover, most shares in these sectors, it is generally accepted,
discount some much more major reversals in energy and commodity prices. Over
time such setbacks will probably not materialize in the context of supply
shortages and strong demand from emerging markets, especially China.
Economic growth in the developed world is likely to be fairly modest for the
foreseeable future, in the face of rises which have taken place in interest
rates and oil prices, and we anticipate continued weakness in consumer demand.
However, emerging market growth is generally likely to continue at a much more
healthy rate as capitalism develops from a low base. There is a strong case for
slanting portfolios towards such growth, which now typically commands a modest
premium.
Equities as an asset class continue to look attractive. Indeed, relative to
bonds, equities are arguably as cheap as at any time in the last 30 years, with
the possible exception of early 2003. Moreover, slowing consumer demand and
global competition should keep inflation in check and make current bond yields
sustainable.
Our main sector exposure outside oil and mining is to financial shares, although
there is room for caution about the growth prospects for UK banks. Banks in
countries such as Ireland, Austria and Switzerland look to be much more
attractively positioned for expansion opportunities.
A modest element of gearing of up to #10million is now being employed to take
advantage of the perceived undervaluation of many equities.
Gordon Campbell
Chairman
5th July 2005
CONSOLIDATED STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account)
for the period from 17th August 2004 to 30th April 2005
(Unaudited)
Revenue Capital Total
#'000 #'000 #'000
Realised gains on investments - 7,241 7,241
Unrealised depreciation of investments - (5,757) (5,757)
_______ ______ ______
Total capital gains on investments - 1,484 1,484
Income from fixed asset investments 853 - 853
Bank interest 38 - 38
Other income 1 - 1
Loss on dealings by subsidiary (138) - (138)
Investment management fee (396) - (396)
Other expenses (157) - (157)
______ ______ ______
Net return before finance costs and taxation 201 1,484 1,685
Interest payable (72) - (72)
______ ______ ______
Return on ordinary activities before tax 129 1,484 1,613
Tax on ordinary activities (91) - (91)
______ ______ ______
Return on ordinary activities after tax 38 1,484 1,522
Other appropriations in respect of non-equity
shares - (2,040) (2,040)
______ _______ _______
Return attributable to equity shareholders 38 (556) (518)
===== ===== ======
Transfer to/(from) reserves 38 (556) (518)
===== ===== ======
Return per Geared Growth share 0.04p (0.59)p (0.55)p
===== ===== ======
The revenue column of this statement is the profit and loss account of the
Group.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were discontinued or acquired in the period.
The financial information does not constitute 'accounts' as defined in section
240 of the Companies Act 1985.
The Company was incorporated on 17th August 2004 and its shares were listed on
the London Stock Exchange on 1st November 2004, on which date it commenced
business. Consequently, the Statement of Total return above reflects the returns
from 1st November 2004 to 30th April 2005.
CONSOLIDATED BALANCE SHEET
at 30th April 2005
(Unaudited)
#'000
Fixed assets
Investments 93,983
_______
Current assets
Investments 7,662
Cash at Bank 1,714
Debtors 2,165
_______
11,541
Creditors: amounts falling due within one year (10,661)
_______
Net current assets 880
_______
Total assets less current liabilities 94,863
=======
Capital and reserves
Called up share capital 1,898
Share premium 1,103
Special reserve 90,340
Capital reserve - realised 5,201
Capital reserve - unrealised (5,757)
Redemption reserve 2,040
Revenue reserve 38
________
Total shareholders' funds 94,863
=======
Net asset value per Geared Growth share 39.18p
________
CONSOLIDATED CASH FLOW STATEMENT
for the period from 17th August 2004 to 30th April 2005
(Unaudited)
#'000
Operating activities (7,436)
Net cash outflow from operating activities
______
Servicing of finance (2)
Interest paid
_______
Net cash outflow from servicing of finance (2)
_______
Taxation (94)
Net tax paid
______
Capital expenditure and financial investment (161,974)
Purchase of fixed asset investments 67,879
Sale of fixed asset investments
_______
Net cash outflow from capital expenditure and (94,095)
financial investments
______
Net cash outflow before financing (101,627)
______
Financing
Share issue 94,983
Cost of share issue (1,642)
Short term loan 10,000
______
Net cash inflow from financing 103,341
______
Increase in cash 1,714
=====
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH
#'000
Increase in cash in period 1,714
Increase in debt during period (10,000)
______
Net debt at 30th April 2005 (8,286)
=====
The interim report will be sent to all registered shareholders and copies may be
obtained from the Registered Office, 1 Grosvenor Place, London, SW1X 7JJ.
By order of the Board
Jupiter Asset Management Limited, Secretaries
All enquiries:
Richard Pavry
Jupiter Asset Management Limited
Tel: 020 7412 0703
This information is provided by RNS
The company news service from the London Stock Exchange
END
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