RNS Number:1404D
Prospect Japan Fund Ld
20 September 2004
THE PROSPECT JAPAN FUND LIMITED
UNAUDITED PRELIMINARY PROFIT ANNOUNCEMENT
For the period from 1 January 2004 to 30 June 2004
Investment Objective
The Company is a closed-end Investment Company incorporated in Guernsey as a
Company limited by shares which has been established to invest substantially all
of its assets in securities issued by smaller Japanese companies. The objective
of the Company is to achieve long-term capital growth from an actively managed
portfolio of securities primarily of smaller Japanese companies listed or traded
on Japanese Stock Markets.
Market Performance, US$ NAV
CY2004 YTD Since Inception
(30/06/2004) (31/08/2004) (20/12/1994)
Prospect Japan Fund 40.63% 26.94 87.40%
TOPIX 12.14% 5.39 -28.08%
TOPIX SMALL 26.16% 17.68 -40.15%
JASDAQ-BBG 50 39.37% 22.24 n/a
Above performance of the Prospect Japan Fund is net of fees and expenses and
includes reinvestment of dividends and capital gains. Topix is the capital
ization-weighted index of all companies listed on the First Section of the Tokyo
Stock Exchange. Topix Small is capitalization-weighted index designed to measure
the stocks not included in the Topix 500 Index that are listed on the First
Section of the Tokyo Stock Exchange. JASDAQ-Bloomberg Market Value Top 50 Index
is a price-weighted index of the 50 top Japanese companies traded on JASDAQ
excluding the Bank of Japan.
Prospect Japan Fund up 41% YTD to June 2004, and an impressive 87% since its
inception, outperforming the TOPIX, TOPIX SMALL, and JASDAQ-BBG 50.
Prospect Japan Fund Top Ten Earnings Results and Forecasts
RP FY Per FY ROE FY
to to
RP to 2005 2005 to 2005
FY (Co. (Co. (Co.
Code Name Sector Weighting to Estimate) Estimate) Estimate)
2004
7545 Nishimatsuya Retail 6.6% 26% 26% 26 27%
Chain
8593 Diamond Non-Bank 6.5% 52% 6% 16 18%
Lease
7421 Kappa Service 6.4% 23% 13% 27 26%
Create
8875 Touei Real 5.4% 75% 29% 18 28%
Housing Estate
8282 Giga's K's Retail 4.6% 16% 37% 13 15%
Denki
9843 Nitori Retail 4.5% 45% 11% 23 16%
7606 United Retail 3.7% 10% 10% 19 21%
Arrows
8895 Arnest One Real 3.7% 135% 11% 16 52%
Estate
2685 Point Retail 3.6% 52% 20% 27 28%
9942 Joyfull Service 3.1% 3% -28% 36 9%
Prices as of 6/30/2004. All are company estimates. Consolidated figures when
available. RP=Recurring Profit. FY=Fiscal Year
The above chart shows the Prospect Japan Fund's top holding as of 30 June 2004,
their earnings results for the 2004 financial year, their earnings forecast and
valuation for the 2005 financial year as well as their expected
return-on-equity. Not only are results and forecasts solid, valuations also
remain reasonable.
Deficit per Share
The revenue deficit per Ordinary Share has been calculated based on the weighted
average number of Ordinary Shares being 21,926,209 and a deficit of US$654,134
(2003: was based on the number of Ordinary Shares of 10,975,805 and a revenue
deficit of US$35,181).
Dividend
No dividend has been declared for the period.
Taxation Status
The States of Guernsey Income Tax Authority has granted the Company exemption
from Guernsey Income Tax.
Other Shareholder Information
The prices of Ordinary Shares and the latest Net Asset Value are published daily
in the Financial Times. Prices (in sterling terms) of the Ordinary Shares appear
within the section of the London Share Service entitled "Investment Companies".
The Net Asset Value (in dollar terms) appears within the section of the
Financial Times Managed Funds Services entitled "Other Offshore Funds" under
Prospect Asset Management (Channel Islands) Limited.
Share Split
At the Eighth Ordinary General Meeting of the Company held on the 9th June, 2004
it was resolved that shares comprising the present Authorised Share Capital of
US$750,000 divided into 15,000,000 Ordinary Shares of US$0.01 each and 6,000,000
"C" shares of US$0.10 each shall each be subdivided into 10 shares so that the
Authorised Share Capital of the Company of US$750,000 shall be divided into
150,000,000 Ordinary Shares of US$0.001 each and 60,000,000 "C" Ordinary Shares
of US$0.01 each.
UNAUDITED STATEMENT OF TOTAL RETURN
for the period from 1 January 2004 to 30 June 2004
Revenue Capital Total Revenue Capital Total
01.01.2004 01.01.2004 01.01.2004 01.01.2003 01.01.03 01.01.2003
to to to to to to
30.06.2004 30.06.2004 30.06.2004 30.06.2003 30.06.2003 30.06.2003
In U.S. In U.S. In U.S. In U.S. In U.S. In U.S.
Dollars Dollars Dollars Dollars Dollars Dollars
Gains on
investments - 58,216,830 58,216,830 - 9,810,009 9,810,009
Other - (337,759) (337,759) - (21,006) (21,006)
losses
Investment
income 1,198,366 - 1,198,366 1,082,386 - 1,082,386
Management (1,344 ,698) - (1,344,698) (729,858) - (729,858)
fee
Other (436,778) - (436,778) (275,571) - (275,571)
expenses
(Deficit)/
Return on
ordinary
activities
before tax (538,110) 57,879,071 57,295,961 76,957 9,789,003 9,865,960
Withholding
tax (71,024) - (71,024) (112,138) - (112,138)
(Deficit)/
Return on
ordinary
activities
for the (654,134) 57,879,071 57,224,937 (35,181) 9,789,003 9,753,822
period
(Deficit)/
Return per
Ordinary (0.030) 2.640 2.610 (0.003) 0.892 0.889
Share
The above results relate to continuing operations of the Company.
The figures contained in this announcement are unaudited.
UNAUDITED BALANCE SHEET
as at 30 June 2004
30.06.2004 30.06.2003
In U.S. Dollars In U.S. Dollars
Investments 186,370,999 104,261,927
Current assets
Debtors 1,039,892 1,199,509
Bank and cash deposits 15,792,510 4,096,565
16,832,402 5,296,074
Liabilities falling due within one year
Creditors 4,400,993 2,968,316
Net current assets 12,431,409 2,327,758
198,802,408 106,589,685
Represented by:
SHARE CAPITAL AND RESERVES
Share capital 107,413 109,363
Redemption reserve 105,453,178 107,965,678
Capital redemption reserve 308,096 306,146
Other reserves 92,933,721 (1,791,502)
Shareholders' funds attributable to
equity interests 198,802,408 106,589,685
Ordinary Shares in issue 107,413,020 10,936,302
Net asset value per Ordinary Share 1.85 9.75
UNAUDITED CASH FLOW STATEMENT
for the period from 1 January 2004 to 30 June 2004
01.01.2004 to 01.01.2003
30.06.2004 30.06.2003
In U.S. In U.S.
Dollars Dollars
Operating activities
Investment income received (net of
withholding tax) 957,799 776,278
Bank interest received 29,962 2,727
Management fee paid (1,418,413) (717,789)
Other cash payments (456,459) (319,396)
Net cash outflow from operating
activities (887,111) (258,180)
Investing activities
Purchase of investments (42,266,645) (12,795,338)
Sale of investments 52,117,162 14,601,130
Net cash inflow from investing activities 9,850,517 1,805,792
Net cash inflow before financing 8,963,406 1,547,612
Financing activities
Redemption of shares (2,152,500) (295,000)
Net cash outflow from financing
activities (2,152,500) (295,000)
Increase in cash 6,810,906 1,252,612
Reconciliation of net cash inflow to
movement
in net funds
Net cash inflow 6,810,906 1,252,612
Effects of foreign exchange rate changes (337,759) (21,006)
Net funds at beginning of period 9,319,363 2,864,959
Net funds at end of period 15,792,510 4,096,565
This information is provided by RNS
The company news service from the London Stock Exchange
END
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