RNS Number:9833N
Derby Trust PLC
28 July 2003
ACCOUNTS FOR THE SIX MONTHS TO 30TH JUNE 2003
At a board meeting of the company held this morning it was resolved to pay an
interim dividend of 13.6598 pence per Income Share on 31st August 2003 to the
Income shareholders whose names appear on the Register of Members on 8th August
2003. Approval was also given to the Interim Accounts for the six months ended
30th June 2003.
INTERIM REPORT
for the six months to 30th June, 2003
In the first six months of the year total assets less current liabilities rose
from #93.011 million to #98.734 million, an increase of 6.2%. Net assets per
Capital share were 625 pence, compared with 703 pence and 587 pence
respectively at 30th June, 2002 and 31st December, 2002. Details of the
geographical breakdown of the portfolio and a list of the twenty largest
investments are given at the end of this report.
The period under review has seen below trend rates of growth in both the USA and
the UK, while 'Euroland' is close to recession and Japan shows early signs of
recovery. Stockmarkets have recovered strongly from the March lows,
anticipating better growth and higher profits later this year and in 2004.
CAPITAL ACCOUNT
The capital performances of the geographical areas in the first six months are
shown below, adjusted for sterling movements where appropriate.
Relevant
Derby Index
% %
UK +3.9 +4.1
USA +18.2 +8.1
Canada +17.1 +19.7
Japan -0.5 +3.4
Asia Pacific (ex Japan) +9.3 +9.1
The 6.2% increase in total assets compares with a 4.1% rise in the FT All-Share
Index, with performance being helped by the Trust's exposure to North America
and Asia Pacific.
REVENUE ACCOUNT
Net revenue for the six months was #1.613 million compared with #1.687 million
in the comparable period last year. The net dividend has decreased from 14.2818
pence to 13.6598 pence, a decrease of 4.4%.
Your Board is maintaining the dividend forecast, made earlier in the year, that
dividends for 2003 will be approximately 25 pence per share.
Income Shareholders can be assured that in addition to the first interim
dividend payable on 31st August, 2003, it is the intention of the Board to pay a
second interim dividend just prior to the date of the appointment of the
Liquidator.
INVESTMENT POLICY
The investment strategy remains the achievement of long term appreciation
through a broadly spread equity portfolio, both geographically and by sector. It
is also the intention to achieve overall income growth.
OUTLOOK
The major economies saw disappointing growth in 2002 and there was little
evidence of recovery early this year as the Iraq crisis kept confidence at low
levels. The ending of the main conflict, however, led to tentative signs of
improvement, particularly from consumers. Central banks have continued to lower
interest rates, with the Bank of England base rate of 3.5% being the lowest for
48 years and the US Federal Reserve funds rate is down to 1%. Furthermore, tax
cuts of US$350 billion should accelerate growth in the second half of this year,
but there are few signs yet of any significant upturn in capital expenditure in
general, and spending on information technology in particular.
Company profits announcements have generally been better than expected and the
low levels of stockmarkets have created a resurgence of merger and acquisition
activity, particularly from private equity funds. This could prove to be an
important support for markets and investor confidence should continue to improve
throughout the remainder of the year.
DURATION OF THE COMPANY
In the last Chairman's Statement shareholders were informed that the Directors
envisaged putting forward proposals which will enable them either to receive
cash or transfer their assets to one or more funds managed by another manager.
The Board is well advanced with the selection of one manager, who will provide a
range of alternatives from which shareholders may choose. A circular will be
sent to all shareholders later in the year.
By Order of the Board
C.C. KNIGHT
Secretary 25th July, 2003
STATEMENT OF TOTAL RETURN
(incorporating the Revenue Account)
Six months to 30th June, 2003 Six months to 30th June, 2002 Year to 31st December, 2002
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Gains/(losses) on
investments - 5,723 5,723 - (11,577) (11,577) - (29,381) (29,381)
Income from
investments 1,906 - 1,906 1,988 - 1,988 3,626 - 3,626
Other income receivable 66 - 66 103 - 103 202 - 202
Gross revenue/capital
gains/(losses) 1,972 5,723 7,695 2,091 (11,577) (9,486) 3,828 (29,381) (25,553)
Investment management
fee (248) - (248) (278) - (278) (557) - (557)
Other expenses (48) - (48) (49) - (49) (95) - (95)
Return on ordinary
activities before tax 1,676 5,723 7,399 1,764 (11,577) (9,813) 3,176 (29,381) (26,205)
Tax on ordinary
activities (63) - (63) (77) - (77) (137) - (137)
Return on activities
after tax for the
period 1,613 5,723 7,336 1,687 (11,577) (9,890) 3,039 (29,381) (26,342)
Dividend in respect of
non-equity shares (1,613) - (1,613) (1,687) - (1,687) (3,039) - (3,039)
Net return attributable
to shareholders - 5,723 5,723 - (11,577) (11,577) - (29,381) (29,381)
The Revenue columns of this Statement are the Profit and Loss Accounts of the Company.
The accompanying notes are an integral part of this Statement.
All Revenue and Capital items in the above Statement derive from continuing operations.
RETURN PER SHARE (basic and fully diluted)
Income Shares 13.6598p - 13.6598p 14.2818p - 14.2818p
(The first interim dividend is payable on 31st August, 2003 to the Income Shareholders registered on the Company's
Record date 8th August, 2003)
Capital Shares - #0.38 #0.38 - #(1.92) #(1.92)
The above figures do not constitute statutory accounts and those relating to
31st December, 2002 are an abridged version of the company's full accounts which
carry an unqualified Auditor's Report and which have been filed with the
Registrar of Companies.
Deloitte & Touche have informed the directors that on 1st August, 2003 they are
intending to transfer their business to a limited liability partnership
incorporated under the Limited Liability Partnerships Act 2000, to be known as
Deloitte & Touche LLP. It is the current intention of the directors to use the
Company's statutory power to give consent to the appointment of Deloitte &
Touche being treated as extending to Deloitte & Touche LLP from that date.
This announcement is being sent to the shareholders and copies are available for
members of the public at the company's registered office.
DERBY TRUST p.l.c.
CASH FLOW STATEMENT
30th June 2003
30th June 30th June
2003 2002
# # # #
Net cash inflow from
Operating activities 1,607,858 1,625,780
Servicing of finance
Dividend paid (1,352,021) (1,432,606)
Net cash outflow from
servicing of finance (1,352,021) (1,432,606)
Taxation
UK tax paid (2,204) (1,728)
Overseas tax paid (62,507) (56,759)
Tax paid (64,711) (58,487)
Capital expenditure
Payments to acquire
investments (4,291,824) (6,191,849)
Receipts from sale of
investments 3,950,838 7,424,598
Net cash (outflow)/inflow from
investing activities (340,986) 1,232,749
Management of liquid
resources
(Decrease)/increase in call
deposits (149,860) 1,367,436
BALANCE SHEET
As at 30th June 2003 As at 30th June 2002
#'000 #'000 #'000 #'000
Fixed assets
Investments 96,298 105,834
Current assets
Debtors 522 844
Cash and deposits 4,376 7,174
4,898 8,018
Creditors: amounts falling
due within one year 2,462 3,037
Net current assets 2,436 4,981
Total assets less current
liabilities #9,98,734 #110,815
Capital and reserves
Called up share capital 4,486 4,486
Share premium 3,417 3,417
Other reserves 90,831 102,912
#98,731 #110,815
The financial statements on pages 3 to 6 were approved by the Board on 25th July, 2003
N.McAndrew )
) Directors
D.J. Lewis )
CASH FLOW STATEMENT
Six months to Six months to
30th June, 2003 30th June, 2002
#'000 #,000 #'000 #'000
Net cash inflow from
operating activities 1,608 1,626
Servicing of finance
Dividend paid (1,352) (1,433)
Net cash outflow from
servicing of finance (1,352) (1,433)
Taxation
UK Tax paid (2) (2)
Overseas tax paid (63) (57)
Tax paid (65) (59)
Capital expenditure
Payments to acquire
investments (4,292) (6,192)
Receipts from sale of
investments 3,951 7,425
Net cash(outflow)/
inflow from
investing activities (341) 1,233
Management of liquid
resources
(Decrease)/increase in
call deposits (150) 1,367
TWENTY LARGEST INVESTMENTS
as at 30th June 2003
Geographic % of
Holding Area Portfolio
GlaxoSmithKline UK 6.45
BP UK 5.21
Vodafone Group UK 4.86
Royal Bank of Scotland Group UK 4.58
AstraZeneca UK 3.44
Friedman Billings Ramsey USA 3.00
First State Asia Pacific Fund 'B'
Accumulation Shares ASIA PACIFIC (EX JAPAN) 2.98
Tesco UK 2.66
Lloyds TSB Group UK 2.57
Cousins Properties USA 2.57
BAA UK 2.36
Cadbury Schweppes UK 2.17
Merchant Retail Group UK 2.12
Aviva UK 1.93
Scottish Power UK 1.84
Smiths Group UK 1.78
Comcast Corporation Special 'A' USA 1.78
BOC Group UK 1.69
Great Universal Stores UK 1.51
Diageo UK 1.41
56.91%
BREAKDOWN OF PORTFOLIO
as at 30th June, 2003
% of
Portfolio
United Kingdom Equities 73.60
USA Equities 14.34
Canada Equities 4.13
Asia Pacific(Ex Japan) 2.98
Cash Balances 2.49
Japan Equities 1.66
Europe Equities 0.80
100.00%
DIRECTORS, OFFICERS & ADVISERS
Chairman
N.McAndrew
Executive Directors
D.J.Burnstone
D.J.Lewis
J.E.Riley
Non Executive Directors
M.B.Brenninkmeyer
M.C.L.Brenninkmeyer
C.J.Govett
J.Loudon
Investment Manager
Chatsworth Management Services Limited
1 Connaught Place, London W2 2DY
(Telephone: 0207 7402 5500)
Banking Services
HSBC Bank plc
Poultry & Princes Street Branch 27-32 Poultry, London ECP 2BX
Matlock Bank Limited
1 Connaught Place, London W2 2DY
Auditors
Deloitte & Touche
Stonecutter Court, 1 Stonecutter Street, London EC4A 4TR
Solicitors
Herbert Smith
Exchange House, Primrose Street, London EC2A 2HS
Secretary and Registered Office
C.C.Knight, F.C.A.
1 Connaught Place, London W2 2DY
(Telephone: 020 7402 5500)
Registrars and Transfer Office
Capital Registrars
The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU
(Telephone: 0870 162 3100)
Brokers
Cazenove & Co.
20 Moorgate, London EC2R 6DA
Derby Trust p.l.c.
Registered in England No.889466
This information is provided by RNS
The company news service from the London Stock Exchange
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