RNS Number:4147T
Oryx International Growth Fund Ld
18 December 2003
FOR IMMEDIATE RELEASE
RELEASED BY MANAGEMENT INTERNATIONAL (GUERNSEY) LIMITED
ORYX INTERNATIONAL GROWTH FUND LIMITED
PRELIMINARY ANNOUNCEMENT
THE BOARD OF DIRECTORS OF ORYX INTERNATIONAL GROWTH FUND LIMITED ANNOUNCE RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER
2003:
UNAUDITED BALANCE SHEET
As at 30 September 2003
(Expressed in pounds sterling)
2003 2002
# #
INVESTMENTS
Listed investments at market value
(cost #11,556,855; 2002 - #15,784,109 ) 9,851,644 11,677,960
Unlisted investments
(cost #3,888,292; 2002 - #2,802,707) 6,044,433 4,514,350
15,896,077 16,192,310
CURRENT ASSETS
Dividends and interest receivable 359,393 112,775
Amounts due from brokers 65,604 739,013
Bank balances 2,358,693 1,317,021
Other receivables 6,958 -
2,790,648 2,168,809
CURRENT LIABILITIES
Amounts due to brokers 573,327 170,140
Creditors and accrued expenses 52,977 30,260
626,304 200,400
NET CURRENT ASSETS 2,164,344 1,968,409
TOTAL ASSETS LESS CURRENT LIABILITIES 18,060,421 18,160,719
LONG TERM LIABILITIES
Convertible loan stock 2,516,647 2,590,859
TOTAL NET ASSETS #15,543,774 #15,569,860
EQUITY SHARE CAPITAL 4,049,116 4,549,114
RESERVES
Share premium 4,247,457 4,247,456
Reserve relating to warrants (18,704) 38,300
Capital redemption reserve 1,099,000 599,000
Other reserves 6,166,905 6,135,990
11,494,658 11,020,746
EQUITY SHAREHOLDERS' FUNDS #15,543,774 #15,569,860
Net Asset Value per Share #1.92 #1.71
Fully Diluted Net Asset Value per Share #1.65 #1.50
UNAUDITED STATEMENT OF OPERATIONS
For the period ended 30 September 2003
(Expressed in pounds sterling)
2003 2002
# #
INCOME
Deposit interest 28,861 21,487
Dividends and investment income 462,950 266,926
491,811 288,413
EXPENDITURE
Management and investment adviser's fee 106,765 126,649
Finance charge 11,719 14,004
Custodian fees 9,288 5,995
Administration fees 10,027 8,194
Registrar and transfer agent fees 1,750 2,471
Directors' fees and expenses 52,806 57,714
Audit fee 5,014 4,611
Insurance 9,500 -
Legal and professional fees 4,031 5,292
Printing and advertising expenses 6,793 10,873
Miscellaneous expenses 10,461 5,681
228,154 241,484
NET INCOME BEFORE TAXATION 263,657 46,929
Taxation (14,584) (27,903)
NET INCOME FOR THE PERIOD AFTER TAXATION
Realised (loss)/ gain on investments (162,322) 47,697
Loss on foreign currency translation (30,237) (180,529)
Movement in unrealised gain/ (loss) on revaluation of investments 2,297,281 (1,173,143)
TOTAL SURPLUS/ (DEFICIT) ATTRIBUTABLE TO
SHAREHOLDERS FOR THE PERIOD #2,353,795 #(1,286,949)
EARNINGS PER SHARE FOR THE PERIOD #0.29 #(0.15)
FULLY DILUTED EARNINGS PER
SHARE FOR THE PERIOD #0.22 #(0.11)
UNAUDITED STATEMENT OF CASH FLOWS
For the period ended 30 September 2003
(Expressed in pounds sterling)
2003 2002
# #
Net cash outflow from operating activities (46,456) (87,878)
INVESTING ACTIVITIES
Purchase of investments (7,620,928) (12,039,338)
Sale of investments 9,764,609 8,907,278
Net cash inflow/ (outflow) from investing activities 2,143,681 (3,132,060)
FINANCING ACTIVITIES
Payment to holders of warrants (50,992) -
Shares issued on exercise of warrants - 4,500
Net cash (outflow)/ inflow from financing activities (50,992) 4,500
Net cash inflow/ (outflow) 2,046,233 (3,215,438)
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET FUNDS
Net cash inflow/ (outflow) 2,046,233 (3,215,438)
Exchange movements (30,237) (180,529)
Net cash at beginning of period 342,697 4,712,988
Net cash at end of period #2,358,693 #1,317,021
CHAIRMAN'S STATEMENT
The first half of the year saw a substantial recovery in world markets with your fund benefiting accordingly.
However, with over 24% of the portfolio invested in unlisted instruments where changes are event driven, the overall
performance was unable to match the excellent performance of the quoted portfolio. However, your Board are confident
that the embedded value in the unlisteds will come through as disposals are made.
With confidence in markets continuing to be fragile, our policy of investing in situations where we believe value can
be realised should hold us in good stead for the year as a whole.
In line with our stated policy, your Board do not propose paying a dividend. However, we will be continuing with our
policy of buying back shares when appropriate.
Nigel Cayzer
Chairman
INVESTMENT ADVISER'S REPORT
The Fund continued to perform reasonably well during the six-month period to 30 September 2003, achieving performance
of +14.2% on an absolute basis and modest outperformance against the FTSE 100 Index, although performance against the
smaller capitalisation indices was disappointing. This was achieved despite a 4.8% decline in the dollar which had an
adverse impact on the unquoted portfolio and as a consequence reduced net asset value by 1%. A backdrop of continuing
weakness in the major world economies as well the Iraq war meant continuing weakness in equity valuations during the
first part of the period.
The quoted portfolio, including cash balances, appreciated by over 24% during the period, led by the contribution of
the actively-traded segment of the portfolio. The Fund continues to adopt an event-driven activist investment
strategy and cash balances increased sevenfold during the period, reflecting the realisation proceeds of a number of
situations.
Performance for the period was assisted by stocks that performed notably well, including Charter which rose by 116%,
Whatman which increased by nearly 80% and SSL by a similar amount. Simon Group rose by 44% and Quarto, a publishing
company, by 36.5%. Dowding & Mills, an electrical and mechanical services business, also performed well adding 30%.
Lupus Capital, which was added to the portfolio during the period, returned a creditable 29.4%.
Biocompatibles was sold at a profit of over #250,000 (+35.8%) and, in the quoted portfolio, Infast and William
Sinclair were also sold at a profit. A good profit was made in the sale of Lesco Inc. Performance was dampened by
disappointing out turns from Hartstone ordinary shares and De Vere Group, both of which were eliminated from the
portfolio during the period.
We remain encouraged by the performance of the unquoted part of the portfolio and Nationwide Accident Repair did
well, adding almost 9% during the period. Santa Maria Foods also performed steadily, returning around 3.5%. This
company is now in the process of being sold and we hope to receive circa $30 per share, a 25% uplift. Waterbury is
also in the process of being sold and early indications are that an uplift of at least 60% is possible.
Finally, we have started discussions to float United Industries on the AIM market once again at a sizeable premium to
holding value. We expect these transactions to add at least 10p to the Fund's net asset value and possibly more.
The outlook at the end of the period was markedly better than at the beginning with an expectation of further
outperformance as data flow suggests a sustained revival in the US economy and continued recovery in equity
valuations.
J O Hambro Capital Management Limited
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