Interim Results
May 08 2003 - 8:27AM
UK Regulatory
RNS Number:8585K
Close Finsbury Eurotech Trust PLC
08 May 2003
To: City editors For immediate release
8 May 2003
CLOSE FINSBURY EUROTECH TRUST PLC
Announces Interim Results for
the six months to 28 February 2003
Financial Highlights:
(Unaudited) (Audited)
Six months ended Year ended
28 February 31 August
2003 2002
Total Net Assets #7.0m #8.7m
Net asset value per Ordinary share 20.6p 25.5p
Share price 14.5p 19.8p
Discount 29.6% 22.4%
FTSE eTX All Share Index (sterling adjusted) 146.3 159.9
FTSE eTX Innovation Index (sterling adjusted) 117.5 149.2
Morgan Stanley Capital International
Pan-Euro Index (sterling adjusted) 671.0 770.3
- ENDS -
The following are attached:
* Chairman's Statement
* Statement of Total Return
* Balance Sheet
* Cash Flow Statement
* Notes to the interim accounts
For further information please contact:
Alastair Smith, Close Finsbury Asset Management Ltd 020 7426 6240
Fiona Harris, Quill Communications 020 7763 6970
CLOSE FINSBURY EUROTECH TRUST PLC
Performance
The six months to 28 February 2003 have seen a continuation of difficult trading
conditions in the technology field generally, particularly in the new
technology, early stage areas that this trust is committed to. This has been
reflected in further weakness in the markets for technology shares. The FTSE
eTX All Share Index, some 80% of whose capitalisation is represented by industry
leaders, fell by 8.5% over the period, whereas the FTSE eTX Innovation Index,
which more closely reflects the investment focus of this trust, fell by 21.2%.
Against this background, the net asset value of the trust fell by 19.2% to 20.6p
per share, while the share price fell by 26.8% to 14.5p per share, or a discount
to net asset value of 29.6%. The trust's long term performance benchmark, the
MSCI Pan European Index, which reflects the performance of European stock
markets generally, rather than the technology sector in particular, fell by
12.9%.
Activity
In my last report to shareholders I recorded the view of your board and its
investment advisers, Reabourne Technology Investment Management, that the long
term case for investment in European technology remained valid, and that the
current depressed level of technology markets, while unlikely to be reversed in
the immediate future, offered investment opportunities that, in a longer term
context, seemed exceptionally attractive. The company's managers have therefore
been active in recent months in refocusing the investment portfolio in order to
place it in the best possible position to take advantage of these opportunities
in due course.
Outlook
There is increasing evidence that the economic fundamentals for the technology
industry are now beginning to stabilise and trading prospects to improve,
although market ratings are unlikely to recover significantly until investor
confidence begins to reflect more positive developments in the macro economic
and international political arenas. Nevertheless what is clear is that current
valuation levels, on any medium to long term time horizon, are likely to prove
exceptionally cheap and shareholders, particularly those that have suffered
substantial losses on their investments so far, would be ill-advised to
disinvest at what is likely to prove close to the bottom of the market.
Your board are therefore considering with their advisers the best way to ensure
that shareholders benefit fully from a recovery in valuations when this comes
through and believe that the trust is particularly fortunate in having access to
the services of Reabourne Technology Investment Management, a team that is
exceptionally well placed to take advantage of the opportunities that lie ahead.
Peter Gray
Chairman
8 May 2003
CLOSE FINSBURY EUROTECH TRUST PLC
Statement of Total Return
For the six months ended 28 February 2003
(Unaudited) (Unaudited) (Audited)
six months ended six months year ended
28 February 2003 28 February 2002 31 August 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#000 #000 #000 #000 #000 #000 #000 #000 #000
Losses on
investments - (1,538) (1,538) - (109) (109) - (5,417) (5,417)
Exchange losses on
currency balances - (12) (12) - (11) (11) - (16) (16)
Income 46 - 46 32 - 32 96 - 96
Investment
management fee (34) - (34) (109) - (109) (184) - (184)
Other expenses (138) - (138) (156) - (156) (297) - (297)
Net loss before
finance costs and
taxation (126) (1,550) (1,676) (233) (120) (353) (385) (5,433) (5,818)
Interest payable and
similar charges (1) - (1) - - - (1) - (1)
Loss on ordinary
activities before
taxation (127) (1,550) (1,677) (233) (120) (353) (386) (5,433) (5,819)
Taxation on ordinary
activities (3) - (3) - - - (2) - (2)
Loss on ordinary
activities after
taxation (130) (1,550) (1,680) (233) (120) (353) (388) (5,433) (5,821)
Dividends on
Ordinary shares - - - - - - - - -
Deficit for the
period/years (130) (1,550) (1,680) (233) (120) (353) (388) (5,433) (5,821)
Loss per Ordinary (0.38)p (4.53)p (4.91)p (0.68)p (0.35)p (1.03)p (1.13)p (15.89)p (17.02)p
share (note 1)
The revenue columns of this statement represent the revenue account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued during the period.
CLOSE FINSBURY EUROTECH TRUST PLC
Balance Sheet
As at 28 February 2003
(Unaudited) (Unaudited) (Audited)
28 February 2003 28 February 2002 31 August 2002
#000 #000 #000
Fixed asset investments 7,021 14,076 8,629
Current assets
Debtors 20 264 210
Cash at bank 71 353 105
91 617 315
Creditors:
Amounts falling due within one year (66) (499) (218)
Net current assets 25 118 97
Net assets 7,046 14,194 8,726
Capital and reserves
Called up share capital 3,420 3,420 3,420
Share premium 29,976 29,976 29,976
Capital reserves - realised (17,604) (9,958) (15,000)
Capital reserves - unrealised (8,034) (8,817) (9,088)
Revenue reserve (712) (427) (582)
Total shareholders' funds 7,046 14,194 8,726
Net asset value per Ordinary share (note 2) 20.6p 41.5p 25.5p
CLOSE FINSBURY EUROTECH TRUST PLC
Cash Flow Statement
For the six months ended 28 February 2003
(Unaudited)
six months ended (Unaudited) (Audited)
28 February six months ended year ended
2003 28 February 31 August
#000 2002 2002
#000 #000
Net cash outflow activities (168) (210) (409)
Servicing of finance
Interest paid (1) - (1)
Taxation - - 2
Financial Investments
Purchase of investments (3,268) (5,951) (12,297)
Sale of investments 3,420 6,512 12,808
(Decrease)/increase in cash for the period (17) 351 103
CLOSE FINSBURY EUROTECH TRUST PLC
Notes to the Interim Accounts
1. Loss per Ordinary share
Revenue loss per Ordinary share is based on losses attributable to the Ordinary
shares of #130,000 (six months ended 28 February 2002: #233,000; year ended 31
August 2002: #388,000) and on the weighted average number of Ordinary shares in
issue during the period of 34,200,875 (six months ended 28 February 2002:
34,200,875; year ended 31 August 2002: 34,200,875).
Capital loss per Ordinary share is based on net capital losses attributable to
the Ordinary shares of #1,550,000 (six months ended 28 February 2002: #120,000;
year ended 31 August 2002: #5,433,000) and on the weighted average number of
Ordinary shares in issue as shown above.
2. Net Asset Value per Ordinary Share
(Unaudited) (Unaudited) (Audited)
28 February 28 February 31 August
2003 2002 2002
Net asset value per Ordinary share 20.6p 41.5p 25.5p
The net asset value per Ordinary share is based on the assets attributable to
ordinary shareholders of #7,046,000 (28 February 2002: #14,194,000: 31 August
2002: #8,726,000) and on 34,200,875 Ordinary shares (28 February 2002:
34,200,875; 31 August 2002: 34,200,875) being the number of Ordinary shares in
issue at the end of the period.
3.
Comparative information
The figures and the financial information for the year ended 31 August 2002 are
an extract from the latest published accounts and do not constitute statutory
accounts for that year as defined by Section 240 of the Companies Act 1985.
Those accounts have been delivered to the Registrar of Companies and included
the report of the auditors which was unqualified and did not contain a statement
under either section 237(2) and 237(3) of the Companies Act 1985.
4.
Interim Report
The Interim Report will be sent to shareholders in due course.
Close Finsbury Asset Management Limited - Secretary
8 May 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFLVEDITIIV