Final Results
December 11 2003 - 10:40AM
UK Regulatory
RNS Number:1647T
Merrill Lynch New Energy Tech. PLC
11 December 2003
MERRILL LYNCH NEW ENERGY TECHNOLOGY plc
PRELIMINARY ANNOUNCEMENT OF RESULTS
in respect of the year ended 31 October 2003
Performance
Year ended
31 October 2003
Net asset value per ordinary share 26.27p +21.8%
Ordinary share price 23.25p +50.0%
Performance based on mid-market values with net income reinvested.
Source: Merrill Lynch Investment Managers.
* Narrowing of discount to net asset value from 28% to 12% at year end.
* Continued operational progress in portfolio companies.
* Increased governmental focus on need for reliable and sustainable energy generation and storage.
The Chairman, Ewen Macpherson, comments:
"I am pleased to report that the Company's performance over the past year has seen an improvement from the lows
experienced around the 2002 year end. The net asset value per share ("NAV") has increased 21.8% over the year, while
the share price has increased 50%, reflecting better sentiment and a corresponding narrowing of the discount to NAV at
which the shares trade.
"The three years since the Company's launch have been trying for our investors. The fall-out from the technology
"bubble" and a sharp escalation of geopolitical risks have combined with three years of falling stock markets to make
almost all equity investment returns disappointing. However, the need for viable and sustainable alternative energy
generation, storage and transport has never been clearer. The recent large scale blackouts in certain parts of the US
and Europe have not only focused governments and investors on this need, but have also demonstrated the weakness of
existing energy sources and of the infrastructure surrounding them. As the recovery in equity markets broadens,
investor sentiment towards young companies and new industries should improve. We believe that the Company is well
placed to benefit from this."
Commenting upon the outlook for the Company, Robin Batchelor of
Merrill Lynch Investment Managers Limited noted:
"While parts of the sector must still overcome a number of hurdles before becoming commercial, we are optimistic about
the coming year. A growing US economy will stimulate demand for capital goods including new power solutions. This
should accelerate orders for many of your Company's holdings. Furthermore, following the blackouts experienced this
year, politicians, utilities and regulators are more aware of the power system's structural weaknesses. Governments
have now made fixing these problems a political priority and while it will clearly take a range of technologies to
address the power system's failures, superconductors and back up power devices seem likely to play a growing part in
the solution. We anticipate that this will result in further government funding to promote back up generation and grid
stabilisation technologies - ultimately benefiting many of your Company's top holdings.
"Near term progress in renewable energy will be driven largely by the further development of government policy. The
recent announcements in the UK and Germany are clearly positive, having increased financial stability, and we
anticipate that over the next year several large UK wind parks will be announced, benefiting your Company's wind
turbine holdings. While the lack of a US Energy Bill has clearly been a disappointment this year, the need for such
legislation grows more acute every day and we are hopeful that supportive legislation will be passed early in 2004."
For further information, please contact:
Lynn Ruddick, Managing Director, Investment Trusts, Merrill Lynch Investment Managers
Tel: 020 7743 2427
Robin Batchelor, Natural Resources Team, Merrill Lynch Investment Managers
Tel: 020 7743 2618
Nigel Webb, Public Relations, Merrill Lynch Investment Managers
Tel: 020 7743 5938
William Clutterbuck, The Maitland Consultancy
Tel: 020 7379 5151
CONSOLIDATED REVENUE STATEMENT
for the year ended 31 October 2003
Year ended Year ended
31 October 31 October
2003 2002
#'000 #'000
(audited) (audited)
Income (Note 3) 251 259
Investment management fee (Note 4) (429) (752)
Operating expenses (Note 5a) (287) (367)
Return on ordinary activities before taxation (465) (860)
Taxation on ordinary activities (21) (15)
Return of ordinary activities after taxation transferred
from reserves (486) (875)
CONSOLIDATED STATEMENT OF TOTAL RETURN PER ORDINARY SHARE
for the year ended 31 October 2003
Year ended Year ended
31 October 31 October
2003 2002
#'000 #'000
(audited) (audited)
Earnings per share (0.24p) (0.44p)
Capital return per share 4.92p (25.47p)
Total return per share 4.68p (25.91p)
CONSOLIDATED BALANCE SHEET
as at 31 October 2003
Year ended Year ended
31 October 31 October
2003 2002
#'000 #'000
(audited) (audited)
Fixed assets
Listed investments at market valuation 48,648 37,081
Unlisted investments at directors' valuation 2,816 3,432
51,464 40,513
Current assets
Debtors 95 698
Cash at bank 1,139 895
Government securities - 1,509
1,234 3,102
Creditors - amounts falling due within one year (432) (492)
Net current assets 802 2,610
Net assets 52,266 43,123
Capital and reserves
Called-up share capital 9,947 9,997
Capital redemption reserve 53 3
Capital reserve - realised (50,434) (19,925)
Capital reserve - unrealised (86,584) (126,886)
Special reserve 181,347 181,511
Revenue reserve (2,063) (1,577)
Equity shareholders' funds 52,266 43,123
Net asset value per ordinary share 26.27p 21.57p
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 October 2003
Year ended Year ended
31 October 31 October
2003 2002
#'000 #'000
(audited) (audited)
Net cash flow from operating activities (Note 5b) (462) (1,146)
Taxation recovered 425 -
Capital expenditure and financial investment
Purchase of fixed asset investments (14,747) (17,322)
Proceeds from the sale of fixed asset investments 13,708 17,026
Net cash outflow from capital expenditure and
financial investment (1,039) (296)
Net cash outflow before financing (1,076) (1,442)
Financing
Purchase of ordinary shares (164) (6)
Net cash outflow from financing (164) (6)
Net cash outflow before management of liquid resources (1,240) (1,448)
Management of liquid resources
Purchase of government securities (966) (1,493)
Sale and redemption of government securities 2,450 3,896
Net cash inflow from management of liquid
resources 1,484 2,403
Increase in cash 244 955
NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 OCTOBER 2003
1. Principal activity
The principal activity of the Company is that of an investment trust within the meaning of section 266
of the Companies Act 1985.
2. Basis of preparation
The preliminary financial statements have been prepared under the historical cost convention, modified
to include the revaluation of investments, and are in accordance with section 230 of, and schedule 4
to, the Companies Act 1985 and with applicable accounting standards and the Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies' ("SORP").
3. Income
Year ended Year ended
31 October 31 October
2003 2002
#'000 #'000
(audited) (audited)
Income from investments:
Dividends:
- UK listed
- Overseas listed 15 51
114 102
Interest bearing:
- UK listed 55 73
184 226
Interest receivable and other income:
Deposit interest 41 7
Profit on investment dealing by subsidiary
undertaking 26 26
67 33
Total income 251 259
4. Investment management fee
Year ended Year ended
31 October 31 October
2003 2002
#'000 #'000
(audited) (audited)
Investment management fee 425 695
Irrecoverable VAT thereon 4 57
429 752
5. Operating activities
2003 2002
#'000 #'000
(a) Operating expenses
Custody fee 33 72
Administration fee 79 101
Auditor's remuneration:
- audit services 14 14
- non-audit services (taxation compliance) 8 8
- consultation and other services 3 4
Directors' emoluments 51 51
Registrar's fee and other administrative costs 99 117
287 367
(b) Reconciliation of net return before finance costs and taxation to net cash flow from
operating activities
Net return on ordinary activities before taxation (465) (860)
Net sales of investments by subsidiary undertaking 46 26
(Increase)/decrease in debtors (29) 74
Increase/(decrease) in creditors 57 (345)
Tax on investment income included within gross
income
(45) (15)
Profit on investment dealing by subsidiary
undertaking
(26) (26)
Net cash flow from operating activities (462) (1,146)
6. Dividend
No dividends were paid during the year. The directors do not recommend the payment of a final
dividend.
7. Ordinary shares
The number of ordinary shares of 5p each in issue at the end of the year,
on which the net asset value per share was calculated, was: 198,950,000
8. Publication of non-statutory accounts
The financial information contained in this announcement does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985. The annual report and financial
statements for the year ended 31 October 2003 will be filed with the Registrar of Companies in due
course.
The figures set out above have been reported upon by the auditors, whose report for the year ended 31
October 2003 contains no qualification or statement under section 237(2) or (3) of the Companies Act
1985.
The comparative figures are extracts from the audited financial statements of Merrill Lynch New
Energy Technology plc for the year ended 31 October 2002, which have been filed with the Registrar of
Companies. The report of the auditors on those accounts contained no qualification or statement
under section 237 of the Companies Act.
9. Copies of the annual report will be sent to members shortly and will be available from the registered
office, c/o The Company Secretary, Merrill Lynch New Energy Technology plc, 33 King William Street,
London EC4R 9AS. This report will also be available on the Merrill Lynch Investment Managers'
website at www.mlim.co.uk/its
10. The Annual General Meeting of the Company will be held at 33 King William Street, London EC4R 9AS on
Tuesday 17 February 2004 at 10.30am.
11 December 2003
33 King William Street
London EC4R 9AS
This information is provided by RNS
The company news service from the London Stock Exchange
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