Interim Results
August 14 2001 - 9:01AM
UK Regulatory
RNS Number:4766I
Life Offices Opportunities Tst PLC
14 August 2001
14 August 2001
LOOT BENEFITS FROM CONTINUED LIFE INDUSTRY RESTRUCTURING
The investment objective of Life Offices Opportunities Trust Plc (LOOT) is to
achieve long term capital growth from a diversified portfolio of with-profits
life assurance policies. The Trust, with total assets of #37.4 million, is
managed by Scottish Value Management ('SVM'), the independent Edinburgh based
investment boutique.
Results for the six months to 30 June 2001
Salient Points
* Net asset value per share increased over the period by 2.3% to 158.0p.
* Friends Provident floated on the London Stock Exchange and the Company
received over 100,000 shares in the quoted company.
* Bonus declarations remain disappointing following poor equity and bond
market performances in 2000. The board expects the stronger life offices
to continue to be better placed to support their bonuses.
* The substantial problems at Equitable Life continue to be a major drag
on the sector. However, LOOT is unaffected as it has never held any of
their policies.
* There are currently six investigations focusing on life assurance or
long-term savings. The board hopes the recommendations will focus on
increased transparency and will not force with-profits products out of
existence. The board believes that with-profits products have many
attractive features for investors and have a strong future.
End
For further information please contact:
Brian Moretta Scottish Value Management 0131 226 6699
Mike Lord Broadgate 020 7726 6111
LIFE OFFICES OPPORTUNITIES TRUST PLC
CHAIRMAN'S STATEMENT
For the six months to 30 June 2001
Commenting on the results for the six months to 30 June 2001, Chairman, John
Brumwell, said:
"The first half of 2001 has seen your Company make further progress. No
further policies have been bought, though several policies have matured. The
existing assets have continued to appreciate and over the six month period
covered by this report the Company's net asset value per share rose 2.3% to
158.0p. The investment objective of your Company is to achieve long term
capital growth and no dividend is payable.
This year has been an interesting one for the life industry, though not all of
it has been positive. Restructuring has continued with several previously
announced demutualisations taking place. Friends Provident floated on the
London Stock Exchange and Scottish Life was purchased by London Mutual. Your
Company received over 100,000 shares in Friends Provident. National Mutual
announced that it would demutualise and be sold to GE Capital. Your Company
owns one National Mutual policy. Halifax plc has purchased most of Equitable
Life. Despite increasing exit penalties it continues to lose policyholders,
and has not yet resolved the guaranteed annuity issue. However, LOOT is
unaffected as it has never held any of their policies.
With poor equity and bond market performances in 2000 the bonus declarations
were again disappointing. While reversionary bonus rates appear to be
sustainable, some offices have lowered them further probably to retain
investment flexibility and we expect the stronger offices to continue to be
better placed to support their bonuses.
Unfortunately, with-profits policies have continued to attract bad publicity.
The use of market value adjusters (which will not apply to any of your
Company's policies as these only apply on actual surrenders) has increased the
calls for transparency. Currently there are at least six investigations by
various bodies which will either concentrate on life assurance or long term
savings. We hope that the recommendations produced by these will focus on
transparency and will not force with-profits products out of existence. We
believe that with-profits products have many attractive features for investors
and have a strong future. Your Company is well placed to have a part in this
future and will continue to benefit from the future growth that with-profits
endowments will provide."
LOOT Interim Statement Cont/d
Summarised Statement of Total Return
6 months to 30 June 6 months to 30 June
2001 2000
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
Gains on sale of - 85 85 - 95 95
investments
Movement in unrealised - 1,306 1,306 - 1,428 1,428
appreciation
-------- ------ ------ ------- ------- -------
Gains on investments - 1,391 1,391 - 1,523 1,523
Income 1 - 1 - - -
Investment management fees - (186) (186) - (175) (175)
Other expenses (53) (124) (177) (68) (117) (185)
-------- ------ ------ ------- ------- -------
Return before interest and (52) 1,081 1,029 (68) 1,231 1,163
taxation
Bank overdraft interest - (196) (196) - (193) (193)
-------- ------ ------ ------- ------- -------
Transfer to reserves (52) 885 833 (68) 1,038 970
===== ===== ===== ===== ===== =====
Return per ordinary Share (0.22)p 3.74p 3.52p (0.28p) 4.25p 3.97p
Balance Sheet as at as at
30 June 2001 30 June 2000
#'000 #'000
Endowment policies 46,855 42,209
Net current liabilities (9,417) (6,952)
----------- ------------
Ordinary shareholders funds 37,438 35,257
====== =======
Net asset value per ordinary share 157.97p 144.50p
Notes
1. Returns per Ordinary Share are based on 23,700,000 shares in
issue during the period (30 June 2000 - 24,400,000). The number of
shares in issue at 30 June 2001 was 23,700,000. (30 June 2000 -
24,400,000).
2. The above figures do not constitute full group accounts in
terms of Section 240 of the Companies Act 1985. The accounts for the
year to 31 December 2000, which were unqualified, have been lodged
with the Registrar of Companies. The interim report will be mailed to
shareholders in mid August 2000. Copies will be available for
inspection at 7 Castle Street, Edinburgh, the registered office of the
Company.
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