Final Results
31 Outubro 2007 - 4:19PM
UK Regulatory
RNS Number:7819G
Royal London UK Eqty&Income SecsPLC
31 October 2007
Royal London UK Equity & Income Securities plc
Unaudited Preliminary Announcement of the Final Results for the year ended 31
August 2007
The Chairman's Statement set out below has been extracted from the Combined
Annual Report and Accounts for the year ended 31 August 2007. Accordingly, all
references to the "Company" pertain to Royal London UK Equity & Income Trust plc
and all references to the "Subsidiary" are in respect of Royal London UK Equity
& Income Securities plc.
Extracts from the Chairman's Statement
This is my sixth annual Chairman's Statement and I am pleased to be able to
report continued progress by your Company. These Financial Statements were
prepared in accordance with International Financial Reporting Standards as they
were for the first time last year.
During the year under review the net asset value ("NAV") per Ordinary share,
probably the best indicator of your Company's progress, has risen from 35.0p to
41.6p. Whilst your Board pays more attention to absolute, rather than relative,
performance, it is pleasing to note that, once again, Royal London Asset
Management Limited (the "Investment Manager") has succeeded in outperforming, in
total return terms, the reference composite benchmark, excluding the effects of
gearing. This outperformance is substantially enhanced when the Company's high
level of gearing is taken into account. I should like, on your behalf, to
congratulate the Investment Manager on another successful outcome in what has
been a difficult and volatile year in securities markets, particularly in the
bond markets.
I should also like to draw shareholders' attention to the fact that, for the
first time in the Company's life, your Investment Manager has made extensive use
of derivative strategies. I am pleased to say that, so far, implementation of
these strategies has been beneficial, both in terms of providing income from
premia received and providing a partial protection of capital against market
falls. The capital structure of the Group has remained unchanged during the year
under review. With borrowings of #50 million, the Company's loan to value ratio
at the year end stood at 40.1%, which was, once again, a modest improvement on
the previous year (2006: 43.4%).
As anticipated in my Interim Statement the full year's revenue covered the
Annuity dividend adequately and, thanks in part to the successful derivatives
strategy pursued, the Board has been able to approve a special dividend of 0.75p
per Ordinary share. This dividend will be paid on 7 December 2007 to Ordinary
shareholders on the Company's register of members at the close of business on 9
November 2007.
As at 31 August 2007 the breakdown of the Group's assets was as follows:
Market Value Market Value
Asset Allocation Asset Exposure
#'000 % #'000 %
Growth Portfolio 87,084 70.4 76,979 62.3
Bond Portfolio 25,907 21.0 25,907 21.0
Income Portfolio 6,088 4.9 6,088 4.9
Total Portfolio 119,079 96.3 108,974 88.2
Cash (net current assets) 4,534 3.7 14,639 11.8
123,613 100.0 123,613 100.0
Shareholders will be well aware of the fact that the Zero Dividend Preference
("ZDP") shares issued by Royal London UK Equity & Income Securities plc
(the "Subsidiary") and the bank loan are both redeemable in September 2008. As
per the Company's Articles of Association, the Annuity shares have a redemption
date of 14 September 2021, whilst the Ordinary shares issued by the Company have
no fixed life; any divergence from this would require shareholder approval in a
Class Meeting. The sole Annuity shareholder has confirmed to the Board that it
expects the Company to continue in existence until the aforementioned redemption
date of its shares.
Your Board has recently appointed Landsbanki Securities (UK) Limited
("Landsbanki") (formerly Teather & Greenwood) to act as the Company's Broker.
My fellow Directors and I will be working closely with Landsbanki over the
coming year to formulate a strategy to refinance the ZDP shares and the bank
loan.
I should like to thank all those involved with the Group for their efforts
during the year. Your Board has agreed the Investment Manager's current asset
allocation and concurs with its assertion that, over the medium term, equities
should continue to outperform both bonds and cash. In the short term, however,
the current equity exposure within the Company has been reduced by the
Investment Manager until the financial and economic outlook becomes clearer.
The Company's Annual General Meeting ("AGM") will be held at the offices of the
Investment Manager at 55 Gracechurch Street, London EC3V 0UF on Wednesday, 19
December 2007 at 12 noon. Full details of the business to be conducted at the
AGM are set out in the Notice of Meeting which will be sent to shareholders.
Your Board, of course, welcome your attendance at the forthcoming AGM, not least
because it provides a forum for shareholders to put questions to the Directors
and the Investment Manager. Should you have a query that requires a detailed or
technical response, I would urge you to submit that query to the Company
Secretary in advance of the AGM to ensure that it is properly addressed.
Contact details of the Company Secretary can be found at the foot of this
announcement. For those of you who are unable to attend the meeting in person,
the Board would encourage you to submit your proxy votes by the prescribed
deadline of close of business on Monday, 17 December 2007.
Jonathan Carr
Chairman
31 October 2007
Royal London UK Equity & Income Securities plc (the "Company")
Unaudited Preliminary Announcement of the Final Results for the year ended 31
August 2007
Unaudited Income Statement
for the year ended 31 August 2007
(Unaudited) (Audited)
For the year ended For the year ended
31 August 2007 31 August 2006
Note #'000 #'000
Profit on ordinary activities before and - -
after taxation
Finance costs (233) (1,589)
------------------- -------------------
Loss for the year (233) (1,589)
========== ==========
Loss per Ordinary share 2 (466.00)p (3,178.00)p
No operations were acquired or discontinued during the year.
Unaudited Statements of Changes in Equity
For the year ended 31 August 2007 (Unaudited)
Ordinary share Capital reserve Profit and loss Total
capital account
#'000 #'000 #'000 #'000
At 31 August 2006 50 6,576 (6,343) 283
Loss for the period - - (233) (233)
------------ ------------ ------------ ------------
At 31 August 2007 50 6,576 (6,576) 50
======= ======= ======= =======
For the year ended 31 August 2006 (Audited)
Ordinary share Capital reserve Profit and loss Total
capital account
#'000 #'000 #'000 #'000
At 31 August 2005 50 6,576 (4,754) 1,872
Loss for the period - - (1,589) (1,589)
------------ ------------ ------------ ------------
At 31 August 2006 50 6,576 (6,343) 283
======= ======= ======= =======
Unaudited Balance Sheet
at 31 August 2007
(Unaudited) (Audited)
2007 2006
Note #'000 #'000
Current assets
Debtors 21,539 20,042
Cash at bank 8 8
--------------- ---------------
Total assets 21,547 20,050
---------------- ---------------
Current liabilities (21,497) -
---------------- ---------------
Total assets less current liabilities 50 20,050
Non current liabilities
Attributable to ZDP shareholders - (19,767)
---------------- ---------------
Net assets 50 283
========== =========
Equity attributable to equity
shareholders
Ordinary share capital 50 50
Capital reserve 6,576 6,576
Profit and loss account (6,576) (6,343)
----------------- ---------------
Total equity 50 283
========== =========
Net asset value per share:
Ordinary share 3 100.00p 566.00p
ZDP share 3 164.87p 151.60p
The accounts were approved by the Board of Directors and authorised for issue on
31 October 2007. They were signed on its behalf by:
Jonathan Carr
Chairman
Unaudited Cash Flow Statement
for the year ended 31 August 2007
(Unaudited) (Audited)
2007 2006
#'000 #'000
Operating activities
Loss before tax (233) (1,589)
Add back finance costs 233 1,589
----------- -----------
Net cash inflow from operating activities before interest and taxation - -
======= =======
Reconciliation of net cash flow to movements in net cash
Increase in cash as above - -
Cash and cash equivalents at the start of the year 8 8
------------ ------------
Cash and cash equivalents at the end of the year 8 8
======= =======
Unaudited Notes to the Accounts
For the year ended 31 August 2007
1. Accounting Policies
The financial statements of the Company have been prepared in accordance with
International Financial Reporting Standards ("IFRS") which comprise standards
and interpretations approved by the International Accounting Standards Board ("
IASB"), and International Accounting Standards and Standing Interpretations
Committee approved by the International Accounting Standards Committee ("IASC")
that remain in effect, and to the extent that they have been adopted by the
European Union.
The financial statements have been prepared on a break-up basis. This does not
impact the NAV or return per share. The liabilities to ZDP shareholders are now
treated as current liabilities as they are expected to be paid within a year of
the date of signing these accounts.
2. Loss per share
The loss per Ordinary share is calculated by dividing the net loss of #233,000
(2006: #1,589,000) by the number of shares in issue throughout the year of
50,000 (2006: 50,000).
3. Net asset value per share
Net asset value per Ordinary share is based on net assets attributable to the
Ordinary shares of #50,000 (2006: #283,000) and 50,000 (2006: 50,000) Ordinary
shares in issue at 31 August 2007.
The net asset value per ZDP share is based on net assets attributable to ZDP
shares of #21,497,000 (2006: #19,767,000) and 13,039,100 (2006: 13,039,100) ZDP
shares in issue at 31 August 2007.
4. Parent Undertaking
The Company is a wholly owned subsidiary undertaking of Royal London UK Equity &
Income Trust plc, an investment trust company registered in England and Wales
and operating in the United Kingdom.
5. Accounts
The above financial information for the year ended 31 August 2007 does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The comparative financial information is based on statutory accounts for
the year ended 31 August 2006. These accounts, upon which the Auditors issued
an unqualified opinion and did not contain statements under Section 237 (2) and
(3) of the Companies Act 1985, have been delivered to the Registrar of
Companies. Statutory accounts for the year ended 31 August 2007 will be
delivered to the Registrar of Companies in due course.
6. Annual General Meeting
The AGM of Royal London UK Equity & Income Securities plc will be held on
Wednesday, 19 December 2007 at 11.45 am. Only Ordinary shareholders are
entitled to attend this meeting. The Annual Report and Accounts for the year
ended 31 August 2007, together with the Notice of Annual General Meeting will be
posted to shareholders shortly and will be available from the Company Secretary
upon request.
For further information, please contact:
Victoria Bunton
BNP Paribas Secretarial Services Limited
Secretary
Tel: 020 7410 2670
31 October 2007
This information is provided by RNS
The company news service from the London Stock Exchange
END
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