Final Results
December 19 2003 - 8:30AM
UK Regulatory
RNS Number:4980T
Alternative Invest. Strategies Ld
19 December 2003
ALTERNATIVE INVESTMENT STRATEGIES LIMITED
PRELIMINARY ANNOUNCEMENT OF THE FINAL RESULTS
The Directors announce the unaudited final results for the year ended 31 October
2003 as follows:-
The financial information set out in this announcement does not constitute the
Company's statutory accounts for the year ended 31 October 2003. These accounts
for the year ended 31 October 2003 are unaudited and will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the UK Listing Authority and
the Channel Islands Stock Exchange following approval. The financial information
is prepared on the same basis as set out in the previous year's annual accounts.
SUMMARISED STATEMENT OF TOTAL RETURN
(incorporating the revenue account)
1 November 2002 to
31 October 2003
Revenue Capital Total
$ 000 $ 000 $ 000
Gains on investments - 13,087 13,087
Income 238 - 238
Management (including (1,364) (416) (1,780)
Investment Management) fee
Other expenses (434) - (434)
Net return before finance costs (1,560) 12,671 11,111
Interest payable (260) - (260)
(Deficit)/return on ordinary activities
for the period (1,820) 12,671 10,851
Transfer from/(to) reserves 1,820 (12,671) (10,851)
(Deficit)/return per share $(0.026) $0.183 $0.157
1 November 2001 to
31 October 2002
Revenue Capital Total
$ 000 $ 000 $ 000
Gains on investments - 6,369 6,369
Income 342 - 342
Management (including
Investment Management) fee (1,379) (390) (1,769)
Other expenses (332) - (332)
Net return before finance costs (1,369) 5,979 4,610
Interest payable (324) - (324)
(Deficit)/return on ordinary activities
for the period (1,693) 5,979 4,286
Transfer from/(to) reserves 1,693 (5,979) (4,286)
(Deficit)/return per share $(0.024) $0.083 $0.059
SUMMARISED BALANCE SHEET
As at As at
31 October 31 October
2003 2002
$ 000 $ 000
Investments 128,449 127,789
Current assets 8,286 3,209
Creditors - amounts falling due within one year (9,477) (9,614)
Net current liabilities (1,191) (6,405)
Total assets less current liabilities 127,258 121,384
Net assets attributable to ordinary shareholders 127,258 121,384
Capital and reserves
Called up share capital 68 70
Share premium account 73,621 78,598
Capital reserve - realised 34,293 22,278
Capital reserve - unrealised 27,276 26,620
Revenue reserve (8,290) (6,470)
Capital redemption reserve 290 288
127,258 121,384
Net asset value per ordinary share $1.881 $1.721
SUMMARISED CASH FLOW STATEMENT
1 November 2002 1 November 2001 to
to 31 October 2002
31 October 2003
$ 000 $ 000
Net cash flow from operating activities (2,209) (1,691)
Servicing of finance - interest paid (260) (324)
Capital expenditure and financial investment 12,427 9,331
Cash flow before use of liquid resources and financing 9,958 7,316
Financing - loan (repaid) - (2,500)
- (redemption) (4,977) (3,114)
Cash flow from use of financing (4,977) (5,614)
Movement in net cash 4,981 1,702
Reconciliation of net revenue return to net cash flow from
operating activities
Net revenue return before finance costs (1,560) (1,369)
Management fee charged to the capital account (416) (390)
Movement in accrued income 3 (3)
Movement in other debtors (99) (25)
Movement in other creditors and accruals (137) 96
Net cash flow from operating activities (2,209) (1,691)
Analysis of changes in net debt
As at As at
1 November 31 October
2002 Cash Flow 2003
$ 000 $ 000 $ 000
Cash at bank 3,102 4,981 8,083
Bank loan (9,000) - (9,000)
(5,898) 4,981 (917)
ALTERNATIVE INVESTMENT STRATEGIES LIMITED
CHAIRMAN'S ANNUAL STATEMENT
I am pleased to present shareholders with the seventh Annual Report of
Alternative Investment Strategies Limited for the year to 31 October 2003.
During the course of the Company's financial year, global equity markets began
to recover from three years of turmoil. Despite maintaining a very cautious
attitude towards this recovery, the Company's net asset value per share (NAV)
grew for the seventh consecutive year, rising from USD1.721 to USD1.881. This
represents an increase of 9.30%, whilst over the same period the Company's
benchmark, the MSCI World Net Index rose 23.7%. This underperformance may, on
the face of it, appear disappointing, it should be viewed in the context of the
last three years' outperformance, which incorporated one of the most severe
equity bear markets in recent history. Over this period the NAV rose by 13.84%,
as against a fall of 21.54% in the benchmark.
Since the Company's launch seven years ago, the NAV has appreciated by 95.49%,
outperforming the benchmark's increase of only 26.3%. Throughout this period,
the NAV performance has been characterised by low volatility, particularly in
falling markets. The results to date are a clear endorsement of the
multi-manager approach, achieving a broad diversification of the Company's
portfolio through a range of closely monitored hedge funds.
During the period, the Board continued to pursue a policy of increasing investor
awareness, including the appointment of professional advisers to the Company, to
seek to ensure regular press coverage of the Company's achievements. The Board
believes that this was a contributory factor in narrowing the discount of the
shares to NAV from 16% to 9%. The Board continues to finance promotional costs
from the management fee.
The Board intends to appoint Hoare Govett as corporate broker to the Company. In
consideration for providing its corporate brokering services, Hoare Govett would
receive a base fee, together with a potential incremental fee to be calculated
with reference to the average annual level of discount at which the Company's
ordinary shares trade relative to their net asset value.
The Company's operating expenses, excluding the investment management fee,
increased to 0.341% of the year-end net assets. This increase, which was due to
prior year under accruals, is explained in the notes accompanying the financial
statements.
The Company continues to make use of the leverage facility with the Royal Bank
of Canada. On 31 October 2003, the Company's borrowings were US$9M out of a
total facility of US$20M.
The Board is confident that the Company's portfolio is invested with experienced
and successful managers and it remains fully committed to pursuing a policy of
seeking superior returns with low downside volatility.
I look forward to welcoming shareholders to our seventh Annual General Meeting
on 27 February 2004, which will be held at the Company's registered office at
Trafalgar Court, Admiral Park, St Peter Port, Guernsey.
Nicholas Wilson
Chairman
16 December 2003
The board of directors approved this preliminary announcement on 16 December
2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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