Results to 30 June 2000
August 01 2000 - 9:20AM
UK Regulatory
RNS Number:8083O
Premier High Income Trust PLC
1 August 2000
PREMIER HIGH INCOME TRUST PLC
PRELIMINARY ANNOUNCEMENT OF UNAUDITED INITIAL RESULTS
David Hankinson, Chairman of the Company, today commented:
"The period since incorporation has been quite a difficult one for your
company.
In order to meet the initial objectives, the equity portfolio, comprising some
70% of the assets, has been invested in companies with above index yields
where the investment adviser believes there are good prospects of capital
appreciation over the life of the company.
Unfortunately, this portfolio was put in place during June and July 1999, just
before investors began to switch their emphasis to lower yielding stocks in
the technology, media and telecommunications sectors. Whilst there has been an
improvement in the final quarter of this financial year, the shift away from
higher yielding stocks has inevitably impacted on the net asset value of the
ordinary shares.
The trend towards low yielding stocks can be evidenced in the divergence
between the performance of the FTSE 350 High and Low yield indices. Since June
7 1999 the return on the High yield index has been -3.9% whereas the return on
the Low yield index has been +7.6%. At its worst the gap between the indices
was over 35%.
Performance for the Global Bond and Investment Trust portfolios has been
broadly satisfactory over the course of the year.
Notwithstanding the difficult environment on the capital side of the account,
I am pleased to report that the income account has fared well. This has meant
that your company has been able to declare a fourth interim dividend of 1.85p
making a total of 7.25p for the period under review. In addition, positive
flows on the income side have meant that your board has been able to transfer
#227,000 to reserves for the current year, thereby providing a sound base for
future dividend prospects.
Looking forward, it would appear that the wide diversity of performance
between "old-economy" high yield and "new-economy" low yield has stabilised.
There is even some evidence that investors are looking once again at those
stocks that have been out of favour for much of the period under review. The
portfolio managers' emphasis will be on recovering lost ground and making
progress over the coming months and years."
The Directors announce the unaudited statement of results for the period 12
March 1999 to 30 June 2000 as follows:
SUMMARISED STATEMENT OF TOTAL RETURN (incorporating the revenue account*)
to 30 June 2000**
Revenue Capital Total
#'000 #'000 #'000
Losses on investments - (2,319) (2,319)
Foreign exchange gains on capital items - (94) (94)
Dividends and interest 2,041 - 2,041
Other income 77 - 77
Investment management fee (92) (275) (367)
Other expenses (174) - (174)
----- ----- -----
Net return before finance 1,852 (2,688) (836)
costs and taxation
Interest payable and (99) (298) (397)
similar charges
----- ----- -----
Return on ordinary activities
before taxation 1,753 (2,986) (1,233)
Taxation on
ordinary activities (116) 116 -
----- ----- -----
Return on ordinary
activities after
taxation for the period 1,637 (2,870) (1,233)
Appropriations in respect of
Zero Dividend Preference shares - (1,365) (1,365)
----- ----- -----
Return attributable to
Ordinary shareholders 1,637 (4,235) (2,598)
Dividend in respect of
Ordinary shares (1,410) - (1,410)
----- ----- -----
Transfer to/(from) reserves 227 (4,235) (4,008)
===== ===== =====
pence pence pence
Return per share:
Ordinary share 8.42 (21.77) (13.35)
Zero Dividend Preference share - 8.86 8.86
===== ===== =====
* The revenue column of this statement is the revenue account of the Company.
** The Company was incorporated on 12 March 1999 and commenced investing on 7
June 1999.
The accounts have been prepared on the basis of the accounting policies set
out in the Listing Particulars which have been delivered to the Registrar of
Companies.
SUMMARISED BALANCE SHEET
As at
30 June 2000
#'000
Investments 36,196
Net current assets 446
------
Total assets less current
liabilities 36,642
Creditors - amounts falling due
after more than one year 5,645
------
Total net assets 30,997
======
Net asset value per share
at 30 June 2000 values:
Ordinary 73.39p
Zero Dividend Preference 108.54p
STATEMENT OF CASH FLOWS
for the period 12 March 1999 to 30 June 2000
2000
#'000
Net cash inflow from
operating activities 1,215
Servicing of finance
Interest paid (390)
Issue costs of long-term loan (36)
------
Net cash outflow from servicing of finance (426)
------
Financial investment
Purchases of investments (61,435)
Sales of investments 22,818
Exchange gains on settlement 28
Exchange losses on forward currency contracts (101)
------
Net cash outflow from capital expenditure
and financial investment (38,690)
------
Equity dividends paid (1,050)
------
Financing
Gross proceeds of share issue 34,858
Issue expenses paid (1,218)
Long-term loan 5,674
------
Net cash inflow from financing 39,314
------
Increase in cash 363
------
NOTE
1.The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. Statutory Accounts for the
period ended 30 June 2000 have not yet been approved, audited or filed with
the Registrar of Companies.
2.The Directors have declared a fourth interim dividend of 1.85p net per
Ordinary share, payable on 31 August 2000 to the holders of Ordinary shares on
the Register at 11 August 2000. The Directors do not recommend the payment of
final dividend.
3.The revenue return per Ordinary share is based on earnings of #1,637,000
on 19,455,570 Ordinary shares in issue throughout the period.
4. The capital return per Ordinary share is based on net capital losses of
#4,235,000 on 19,455,570 Ordinary shares in issue throughout the period.
5. An amount of #573,000 has been charged to capital in respect of management
fees and interest in accordance with accounting policy.
6. The Directors have conducted the affairs of the Company so that it
satisfies the conditions for approval as an investment trust company set out
in Section 842 of the Income and Corporation Taxes Act 1988.
7. There are 15,402,326 Zero Dividend Preference shares in issue. The Zero
Dividend Preference shareholders are entitled to receive 159.44p per share on
30 June 2005. In accordance with Financial Reporting Standard No:4, the
accrued compound growth entitlement of #1,365,000 which takes into account the
allocation of share issue expenses to the Zero Dividend Preference
shareholders, has been charged against the capital reserve.
The net asset value per Zero Dividend Preference share of 108.54p at 30 June
2000 has been calculated in accordance with the Articles of Association.
For further information, please contact:
Mike O' Shea,
Premier Fund Managers Limited - 01483 306090
Puma High (LSE:PMH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Puma High (LSE:PMH)
Historical Stock Chart
From Jul 2023 to Jul 2024
