Final Results
23 Maio 2001 - 12:27PM
UK Regulatory
RNS Number:1064E
Dresdner RCM Emerging Mkts Tst PLC
23 May 2001
For immediate release 23rd May 2001
DRESDNER RCM EMERGING MARKETS TRUST PLC
ANNOUNCEMENT OF PRELIMINARY RESULTS
For the year ended 31st March 2001
RESULTS
A summary of the unaudited results for the year ended 31st March 2001 is set
out overleaf. The results have been produced in accordance with the Statement
of Recommended Practice for the financial statements of investment trust
companies ('SORP').
The net asset value per Ordinary Share (undiluted) at 31st March 2001 was
95.0p compared with 150.5p at 31st March 2000, a decrease of 36.9%. The MSCI
Emerging Markets Index decreased by 29.6% over the same period and, by way of
comparison against the peer group, the average net asset value for all Trusts
in the Global Emerging Markets sector reduced by 27.9% (Sector data source:
AITC Monthly Information Service).
Along with all other equity classes it has been a disappointing year for
emerging markets. Concerns about global slowdown and large falls in technology
shares have been the main factors impacting the markets. The underperformance
of the Trust versus the benchmark index was partly due to the fundamental
ethos of the Trust, which relies on an internal two-tier benchmark in pursuit
of the Trust's stated goal of controlling risk. This process has enabled the
Trust to outperform the MSCI Emerging Markets Index over the five year year
period to 31st December 2000.
The best returns were seen in Latin America where economic growth remained
strong and Mexico and Venezuela in particular benefited from high oil prices.
China was the best performing Asian market as the other major markets were
affected by their high exposure to the technology sector. Emerging Europe
suffered because of the devaluation of the Turkish Lire in February. The
negative sentiment towards the telecoms sector also adversely affected many
eastern European emerging markets.
The Board's main concern about the Trust's original internal two-tier
benchmark was that it was becoming increasingly difficult to gain exposure to
some of the very small markets. Over the years, market liquidity has dried up
due to corporate activity, in the form of take-overs and mergers, or lack of
foreign investors interested in these markets. Given this lack of liquidity,
the Board decided to modify the Trust's internal benchmark, with effect from
the beginning of the last quarter of the year. Consequently five countries
have been removed from the original two-tier benchmark-Venezuela, Pakistan,
Peru, Colombia and Jordan. These make up only 1.4% of the MSCI Emerging Market
Index. Additionally, each "top-tier" and "bottom- tier" country now starts the
year with an equal weighting of 6.7% and 2.5% of the Trust's assets,
respectively, and is re-balanced annually. This has made the internal
benchmark more investable, while ensuring that the managers are continuing to
invest within a two-tier concept allocating emerging markets countries into
either a "top-tier" or "bottom-tier" category.
We expect volatility to remain a feature of the markets as investors await
signs that the United States and Japanese economies have bottomed out.
DIVIDENDS
Since the primary objective of the Trust is capital growth, the Trust does not
normally pay dividends. Therefore as in previous years, with the one exception
for 1999 when the Trust was required to do so in order to maintain its
investment trust status, the Board is not recommending a dividend for the year
under review.
SHARE BUY BACK PROGRAMME
The Directors report that the share buy back programme, for which renewed
shareholder approval was granted in July 2000, has continued. During the year
1,900,255 Ordinary Shares (representing 8.1% of the 23,305,479 shares
currently in issue) were cancelled following their re-purchase.
The Board has decided to recommend to shareholders and warrantholders that the
Company take renewed powers to buy back its Ordinary Shares. Full details will
be sent to shareholders and warrantholders with the forthcoming Annual Report
and Accounts.
ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at 20 Fenchurch Street,
London, EC3P 3DB on Thursday 26th July 2001 at 12.45pm.
10 Fenchurch Street By order of the Board
London, EC3M 3LB
G Absalom
23rd May 2001 Secretary
SUMMARY OF UNAUDITED RESULTS
STATEMENT OF TOTAL RETURN
for the year ended 31st March 2001
2001
(#'000) (#'000) (#'000)
Revenue Capital Total
(Note 2)
Net losses on investments - (13,957) (13,957)
Income from investments 428 - 428
Other income 51 - 51
Investment management fee (480) - (480)
Other expenses of administration (181) - (181)
Net return before finance costs and (182) (13,957) (14,139)
taxation
Finance costs of borrowings - - -
Return on ordinary activities before (182) (13,957) (14,139)
taxation
Overseas taxation (33) - (33)
Return on ordinary activities (215) (13,957) (14,172)
after taxation
Return per Ordinary Share (Note 3) (0.87p) (56.56p) (57.43p)
NET ASSET STATEMENT at 31st March 2001
2001 2001
(#'000) (#'000)
Fixed asset investments 21,420
Current assets 872
Current liabilities (157)
Net current assets 715
Total Net Assets 22,135
Called up share capital 2,331
Share premium account 11,470
Warrant reserve 3,143
Capital redemption reserve 500
Capital reserves :Realised 2,221
Unrealised (2,280)
(59)
Special reserve 5,510
Revenue reserve (760)
Shareholders' Funds 22,135
Undiluted net asset value per Ordinary Share + 95.0p
Diluted net asset value per Ordinary Share # 95.9p
+ The undiluted net asset value is based on 23,305,479 Ordinary
Shares in issue at the year end (2000 - 25,204,534). During the year,
1,900,255 Ordinary Shares were repurchased by the Company and
cancelled and 1,200 Ordinary Shares were issued on the exercise of
warrants.
# The calculation of the diluted net asset value assumes all
outstanding warrants have been exercised, and is therefore based on
28,724,659 Ordinary Shares in issue. The figures shown above for
return per Ordinary Share are both the diluted and the undiluted
returns per Ordinary Share.
SUMMARY OF UNAUDITED RESULTS
STATEMENT OF TOTAL RETURN
for the year ended 31st March 2000
2000
(#'000) (#'000) (#'000)
Revenue Capital Total
(Note 2)
Net gains on investments - 13,511 13,511
Income from investments 456 - 456
Other income 37 - 37
Investment management fee (601) - (601)
Other expenses of administration (174) - (174)
Net return before finance costs and taxation (282) 13,511 13,229
Finance costs of borrowings (3) - (3)
Return on ordinary activities before
taxation (285) 13,511 13,226
Overseas taxation (51) - (51)
Return on ordinary activities (336) 13,511 13,175
after taxation
Return per Ordinary Share (Note 3) (1.26p) 50.46p 49.20p
NET ASSET STATEMENT at 31st March 2000
2000 2000
(#'000) (#'000)
Fixed asset investments 37,371
Current assets 1,062
Current liabilities (511)
Net current assets 551
Total Net Assets 37,922
Called up share capital 2,521
Share premium account 11,468
Warrant reserve 3,144
Capital redemption reserve 310
Capital reserves :Realised 5,107
Unrealised 8,791
13,898
Special reserve 7,126
Revenue reserve (545)
Shareholders' Funds 37,922
Undiluted net asset value per Ordinary Share + 150.5p
Diluted net asset value per Ordinary Share # 141.5p
+ The undiluted net asset value is based on 25,204,534 Ordinary
Shares in issue at the year end (1999 - 27,749,534). During the year,
2,545,000 Ordinary Shares and 140,000 warrants were repurchased by the
Company and cancelled.
# The calculation of the diluted net asset value assumes all
outstanding warrants have been exercised, and is therefore based on
30,624,914 Ordinary Shares in issue. The figures shown above for
return per Ordinary Share are both the diluted and the undiluted
returns per Ordinary Share.
CASH FLOW STATEMENT
for the year ended 31st March 2001 and comparative period.
2001 2001 2000
(#'000) (#'000) (#'000)
Net cash outflow from operating activities (412) (221)
Servicing of finance
Interest paid - (3)
Taxation
Income tax recovered 74 -
Capital expenditure and financial investment
Purchase of investments (34,592) (33,993)
Sale of investments 36,297 36,509
Net cash inflow from financial activities 1,705 2,516
Equity dividends paid - (125)
Net cash inflow before financing 1,367 2,167
Financing
Issue of share capital on exercise of warrants 1 -
Purchase of Ordinary Shares for cancellation (1,607) (2,420)
Expenses associated with share re-purchases (8) (12)
Purchase of warrants for cancellation - (33)
Net cash outflow from financing (1,614)
(2,465)
Decrease in cash (247) (298)
Note 1
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 31st March 2001 or 31st March
2000. The financial information for the year ended 31st March 2000 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985. The statutory accounts for the year ended 31st March
2001 will be finalised on the basis of the financial information presented by
the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
Note 2
The revenue column of this statement is the profit and loss account of the
Company.
Note 3
The returns per Ordinary Share are based on revenue and capital returns to
Ordinary Shareholders, as appropriate and on the weighted average number of
Ordinary Shares in issue throughout each period,
being 24,677,913 for the year ended 31st March 2001 and 26,777,813 for the
year ended 31st March 2000.
For further information, please contact:-
P J Allen or Tessa Murray
Dresdner RCM Global Investors
Tel:- 020 7475 2700
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