Final Results
10 Fevereiro 2003 - 5:30AM
UK Regulatory
EDINBURGH UK TRACKER TRUST PLC
PRELIMINARY RESULTS FOR THE YEAR TO 31 DECEMBER 2002
Edinburgh UK Tracker Trust is the UK's only investment trust with the
sole objective of tracking the performance of the FTSE All-Share Index.
SUMMARY
*Net asset value has tracked FTSE All-Share Index to within 0.2%
p.a. since 1990
*Net asset value per share fell by 25.0% to 169.73p (Index fell by 25.0%)
*Share price fell by 27.8% to 167.25p.
*2.4 million new shares issued at premium to NAV
*Total dividends for the year of 5.3p (2001-5.3p)
For further information, please contact:-
David McCraw
Edinburgh Fund Managers plc 0131 313 1000
Ian Massie
Edinburgh Fund Managers plc 0131 313 1000
CHAIRMAN'S STATEMENT
The company continues to meet its objective of tracking closely the
performance of the FTSE All-Share Index. The net asset value per share
fell by 25.0% to 169.73p and this was exactly in line with the return
from the index. The company's share price fell by 27.8% over the year
to 167.25p which represented a discount of 1.5% to the net asset value.
At the start of 2002, the share price was trading at a premium to the
net asset value of 2.3%. It is encouraging to note that the share price
has returned to trading regularly on a premium to NAV in the new
financial year.
Your board continues to support the company through the manager's
marketing initiative which provides a series of savings schemes through
which savers can invest in Edinburgh UK Tracker Trust in a low cost and
convenient manner. The company contributed �35,000 to this initiative
during the past year. The company's shares traded at a premium to net
asset value on a regular basis in the past year and a total of 2,439,727
new shares were issued to meet investor demand. Up to date information
about the company and the savings products are available on the
manager's website, www.edfd.com.
Revenue
Revenue return per share rose from 5.11p to 5.30p and the board is
recommending a final dividend of 3.1p which will take total dividends
for the year to 5.3p, unchanged from last year.
The revenue return per share is calculated in accordance with accounting
convention on the average number of shares in issue during the year,
rather than on the total share capital, increased by the issue of new
shares, on which the dividend is paid. Even though new shares are
issued at a premium, including full allowance for accrued income, that
premium is regarded as capital and cannot be distributed. Consequently,
maintaining last year's dividend requires a small transfer from revenue
reserves, leaving 0.7p per share of reserves available for similar
purposes in future years.
Annual General Meeting
As required by the company's Articles of Association, shareholders are
again being asked to confirm that Edinburgh UK Tracker Trust should
continue for a further year. A resolution to this effect will be
proposed as Special Business at the Annual General Meeting on 28 April
2003. If this resolution is not passed, the company will be liquidated
this summer, its assets sold and the proceeds distributed to the
shareholders. Liquidation would result in a disposal of the company's
shares for taxation purposes and shareholders should consider carefully
whether they wish the company to be wound up now. There will be another
opportunity to consider the future of the company at the same time next
year.
The investment performance aided by low management and administration
costs (as evidenced by the total expense ratio of 0.48%) emphasises the
attractions of the index tracking approach to investors. I feel
confident that shareholders will again wish to vote in favour of the
resolution releasing the board from the requirement to wind up the
company.
The directors have the authority to issue new shares to meet investor
demand provided the company's shares are trading above the net asset
value per share. Your board also has authority to purchase the
company's shares for cancellation were the shares to trade persistently
on a discount in excess of the levels reached in recent years. Special
resolutions proposing an extension of these facilities will be put to
shareholders at the Annual General Meeting.
Manager
I expect that many shareholders will have read of significant changes to
the board of the manager's parent company, Edinburgh Fund Managers Group
plc, late last year. Although these changes did not involve those
immediately responsible for management of the portfolio, your directors
have sought assurance and are satisfied that the manager remains able to
deliver the service they require.
STATEMENT OF TOTAL RETURN
for the year ended 31 December 2002 (audited)
Revenue Capital Total
�000 �000 �000
Realised loss on investments - (1,283) (1,283)
Unrealised losses on investments - (31,776) (31,776)
Income from investments 3,583 - 3,583
Interest receivable 83 - 83
Investment management fee (308) - (308)
Administrative expenses (246) - (246)
========= =========== ===========
Return on ordinary activities before 3,112 (33,059) (29,947)
taxation
Taxation - - -
========= =========== ===========
Return on ordinary activities after 3,112 (33,059) (29,947)
taxation
Dividends (3,181) - (3,181)
========= =========== ===========
Transferred from reserves (69) (33,059) (33,128)
========= =========== ===========
Return per ordinary share 5.30p (56.31p) (51.01p)
========= =========== ===========
for the year ended 31 December 2001 (audited)
Revenue Capital Total
�000 �000 �000
Realised loss on investments - 143 143
Unrealised losses on - (22,570) (22,570)
investments
Income from investments 3,324 - 3,324
Interest receivable 101 - 101
Investment management fee (330) - (330)
Administrative expenses (228) - (228)
======= ========= =========
Return on ordinary activities 2,867 (22,427) (19,560)
before taxation
Taxation - - -
======= ========= =========
Return on ordinary activities 2,867 (22,427) (19,560)
after taxation
Dividends (3,025) - (3,025)
======= ========= =========
Transferred from reserves (158) (22,427) (22,585)
======= ========= =========
Return per ordinary share 5.11p (40.00p) (34.89p)
======= ========= =========
BALANCE SHEET
At 31 December At 31 December
2002 2001
�000 �000
Fixed assets
Investments 101,552 129,429
============ =============
Current assets 2,109 2,495
Creditors: amounts falling due (1,980) (1,894)
within one year
============ =============
Net current assets 129 601
============ =============
Total assets less current 101,681 130,030
liabilities
============ =============
Capital and reserves
Called up share capital 5,991 5,747
Other reserves 95,690 124,283
============ =============
Total equity shareholders' funds 101,681 130,030
============ =============
Net asset value per share 169.73p 226.27p
Net asset value per share
(excluding retained earnings) 169.01p 225.40p
CASHFLOW STATEMENT
For year ended For year ended
31 December 2002 31 December 2001
�000 �000
Net cash inflow from operating 3,072 3,003
activities
Taxation - -
Financial Investment
Purchase of investments (6,827) (9,657)
Sale of investments 1,667 4,371
============ =============
Net cash outflow from financial (5,160) (5,286)
investment
Equity dividends paid (3,105) (2,954)
Management of liquid resources
Net purchases of AAA rated money (1,000) -
market funds
============ =============
Net cash outflow before financing (6,193) (5,237)
Financing
Issue of ordinary shares 4,779 5,366
============ =============
Decrease in cash (1,414) 129
============ =============
Analysis of changes in cash
during the year
Opening balance 2,250 2,121
Decrease in cash (1,414) 129
============ =============
Closing Balance 836 2,250
============ =============
NOTES :
1.The accounts are prepared under the same accounting policies used
for the year to 31 December 2001.
2.The final dividend, subject to shareholder approval, will be paid
on 30 April 2003 to shareholders on the register at the close of
business on 11 April 2003. The ex-dividend date is 9 April 2003.
3.The statement of total return, balance sheet and the cashflow
statement set out above do not represent full accounts in accordance
with Section 240 of the Companies Act 1985. The financial information
for the year ended 31 December 2001 has been extracted from the Annual
Report and Accounts of the Company which have been filed with the
Registrar of Companies. The auditors' report on those accounts was
unqualified. The statutory accounts for 2002 are unqualified and will be
delivered to the Registrar of Companies following the Company's Annual
General Meeting which will be held at 12 Tokenhouse Yard, London,EC2R
7AN on Monday 28 April 2003 at 11.00 am.
4.The investment management fee includes irrecoverable VAT calculated at
17.5 per cent.
5.The Annual Report and Accounts will be posted to shareholders on 21
February 2003 and copies will be available from the investment manager.
Please note that past performance is not necessarily a guide to the
future and that the value of investments and the income from them may
fall as well as rise. Investors may not get back the amount they
originally invested.
For Edinburgh UK Tracker Trust plc
Edinburgh Fund Managers plc, Secretary
Amanda Fraser
Company Secretary
END