RNS Number:3130J
Conister Trust PLC
27 March 2003


 CONISTER TRUST PLC ANNOUNCES FULL YEAR RESULTS FOR 2002 AND THE APPOINTMENT OF
                     MR GARETH JONES AS EXECUTIVE DIRECTOR



Conister Trust today announces earnings after tax of #233,000 (2001: 287,000)
and a maintained final dividend of 0.6p per share (2001: 0.6p). The text of the
Chairman's Statement is quoted below.


Conister Trust also announces the appointment of Mr Gareth Jones, 34, as
Executive Director with effect from 31 March 2003.


Mr Jones has had a career which has spanned 13 years in retail and corporate
banking, both in the UK and overseas. As well as traditional banking experience
with National Westminster Bank, he has held roles in investor relations and
e-commerce, and has specialised in project management. Former positions include
a senior consultancy role with iXL and with Standard Chartered Bank. He is an
Associate of the Institute of Financial Services, a graduate in chemistry and
holds an MBA from London Business School. He is Manx resident.


CHAIRMAN'S STATEMENT


I wrote in the interim report that 2002 would be a year of investment and change
to put in place the conditions we need in order to grow successfully. I said
that the costs involved would impact on the profits for 2002, but in the absence
of unforeseen circumstances your board would wish to protect the dividend. 2002
has concluded broadly as predicted, and we have decided to hold the final
dividend at 0.6p per share (2001 : 0.6p). This will be paid on 23 May 2003 to
shareholders registered at the close of business on 11 April 2003. This will
make a total dividend for the year of 0.9p per share (2001 : 0.9p). It is again
intended to make available a scrip dividend as an alternative to the final cash
dividend (whereby shareholders can choose, if they wish, to take new shares
instead of payment in cash).


Review of Operations


The profit on ordinary activities after taxation was #233,000 (2001 : #287,000).
After payment of dividends of #222,000 (2001 : #219,000), the retained profit
for the year was #11,000 (2001 : #68,000). Business levels were good in all
areas, resulting in a considerable expansion in our loan book. Some of the
benefit of this will come in future periods as indicated by the 14% increase in
deferred charges as disclosed in the notes to the financial accounts. Despite
strong competition and customers who are increasingly cost conscious, we have
maintained our lending margins. We shall continue to endeavour to do so, but it
is prudent to expect some reduction in future and our budgets take this into
account.


With falling interest rates, our cost of funds rate has reduced. The overall
cost of funds also reflects the growth in deposits to finance the increased loan
book. Much of this deposit growth has a maturity date in excess of twelve
months, giving stability to our balance sheet.


Commissions paid to those who introduce business to us - mostly garages and
brokers - have increased broadly in line with the growth in business levels.
Operating expenses, however, have increased substantially, as we further
strengthen the risk management functions of the bank, continue to implement the
restructuring I reported upon at the half year, and provide additional resource
to serve our growing customer base. The bulk of this new investment is now
behind us and therefore the cost growth in proportion to our business will slow
down.


We are continuing to monitor closely the quality of the loan book. We are
beginning to see improvements, however, we still have to manage down a small
number of significant loans made in the 1990s. These consume considerable
resource and cost. All such accounts have now been carefully reviewed and where
we have reasonable doubt about the chances of getting back our money, then we
have made full provisions in the 2002 accounts. Without these "legacy" debts,
the benefit of our credit control and debt recovery departments would have had
more of an impact; the increase in recoveries of amounts previously provided by
61% to #545,000 (2001 : #338,000) demonstrates a positive start.


Pensions Disclosure


The pensions note in the financial accounts is very detailed, in accordance with
the arrangements required by revised accounting standards. In common with many
companies, we are disclosing a deficit which in our case is #602,000 (2001 :
#226,000). Technically, this is an uncrystalised liability which, in accordance
with current accounting standards, will need to be recognised by 2005, assuming
the deficit still exists. At this stage, and subject to future review, the board
believes the most appropriate way to deal with this would be to retain
sufficient earnings in 2003, 2004 and 2005 to cover the recognition of the
deficit in 2005.


Board Membership


During 2002 we marked the retirement, after almost 10 years' contribution, of my
predecessor Mr Bob Riding and in February 2003 the early retirement of Mr Ernie
Thorn. Mr Thorn had served the company as an employee for 31 years, almost 15 of
which as Managing Director. The board agreed that it was appropriate that he
should not be asked to serve his notice period and the cost of his early
retirement has been charged to the 2002 accounts. Mr Thorn's duties have been
re-allocated within the bank, which has been eased by my own full-time role. The
board has placed on record its gratitude to Mr Riding and Mr Thorn for their
long service and commitment.


In June 2002, Mr Simon Lee was appointed as a non-executive director. Mr Lee has
significant banking and business experience and he has already made a
considerable contribution to the deliberations of the board. On 27 March 2003,
Mr Gareth Jones was appointed as an executive director. Mr Jones has extensive
experience in retail and corporate banking and in project management. Mr Lee and
Mr Jones will offer themselves for re-appointment at the forthcoming Annual
General Meeting.


The composition of the board has changed considerably. In these circumstances,
the board has invited Mr John Dean, non-executive director, to delay his
retirement. He will therefore offer himself for re-appointment at the
forthcoming Annual General Meeting, but has indicated he will retire on or
before the next Annual General Meeting in 2004. I hope you will support his
re-appointment in order to maintain the corporate memory and for us to benefit
from Mr Dean's life long commercial experience.


Outlook


At the time of writing, we are surrounded by uncertainty, with war in the Middle
East, possible recession in the UK, and international economic tensions. Our
response will be to continue to strengthen our risk management and to control
the growth in costs. We shall seek to diversify our loan portfolio and widen our
deposit base in order further to spread our risks. We shall focus on the overall
profitability of our book and seek to strengthen our capital base, primarily
through increased retained earnings.


Of course, there will be challenges ahead, but following a year of rebuilding,
we are now better positioned to take advantage of opportunities for business and
we are determined to be successful.


Finally, I will take this opportunity to pay tribute to all of the staff who
continue to work purposefully in a period of considerable change. I am grateful
to each and every one of them.





Peter J S Hammonds
                                    27 March 2003





Consolidated Profit & Loss Account
for the year ended 31 December 2002



                                                            2002         2001
                                                            #000         #000

Interest receivable and similar income                     5,921        5,683
Interest payable                                          (1,908)      (1,977)
                                                         ---------    ---------
Net interest income (gross income)                         4,013        3,706

Commissions                                               (1,030)        (908)
Other operating income                                        86           92
                                                         ---------    ---------
Net operating income                                       3,069        2,890

Operating expenses                                        (2,407)      (2,086)
Bad and doubtful debts - specific                           (391)        (512)
                       - general                             (51)           3
                                                         ---------    ---------
Profit On Ordinary Activities Before Taxation                220          295

Taxation                                                      13           (8)
                                                         ---------    ---------

Profit On Ordinary Activities After Taxation                 233          287

Dividends                                                   (222)        (219)
                                                         ---------    ---------

Retained profit for year                                      11           68
                                                         =========    =========

Basic earnings per share                                    0.95p        1.18p
                                                         =========    =========

Fully diluted earnings per share                            0.95p        1.18p
                                                         =========    =========


In both the current and prior year there were no recognised gains or losses
other than those dealt with in the profit and loss account.


The total income of the Company was #3,947,000 (2001: #3,581,000).



Balance Sheets

as at 31 December 2002



                                              Group                 Company
                                        2002        2001       2002       2001
                                        #000        #000       #000       #000

Assets

Cash and balances at banks             4,473       3,719      4,344      3,401

Customers accounts receivable         43,609      36,797     42,075     36,069

Tangible fixed assets                  1,054       1,037        932        899

Intangible fixed assets                    -          27          -          -

Investment in subsidiary                   -           -         10         10
undertakings                        ----------  ----------  ---------  ---------

Other debtors and prepayments            154         166      1,241        868
                                    ----------  ----------  ---------  ---------
                                      49,290      41,746     48,602     41,247
                                    ==========  ==========  =========  =========

Liabilities

Deposit accounts                      39,952      32,624     39,952     32,624

Creditors and accrued charges            590         467        484        389
                                    ----------  ----------  ---------  ---------

Proposed dividends                       148         146        148        146
                                    ----------  ----------  ---------  ---------

                                      40,690      33,237     40,584     33,159
                                    ----------  ----------  ---------  ---------

Capital Resources
                                    ----------  ----------  ---------  ---------

Called up share capital                6,159       6,099      6,159      6,099

Share premium account                    690         670        690        670
                                    ----------  ----------  ---------  ---------

Profit and loss account                1,751       1,740      1,169      1,319
                                    ----------  ----------  ---------  ---------

EQUITY SHAREHOLDERS' FUNDS             8,600       8,509      8,018      8,088
                                    ----------  ----------  ---------  ---------
                                      49,290      41,746     48,602     41,247
                                    ==========  ==========  =========  =========


Consolidated Cash Flow Statement
for the year ended 31 December 2002

                                                             2002         2001
                                                             #000         #000
Reconciliation of profit before taxation
to net operating cash flow

Profit before taxation                                        220          295
Loss on sale of fixed assets                                    6            3
Depreciation charge                                           112          126
Amortisation of goodwill                                       27           53
Decrease in trade debtors                                      12           27
                                                          ---------    ---------
Increase in trade creditors                                   131           14
                                                          ---------    ---------
Net cash inflow from trading activities                       508          518

(Increase) in customers accounts receivable                (6,812)        (480)
Decrease in loans to banks                                  1,265        1,094
                                                          ---------    ---------
Increase/(Decrease) in deposit accounts                    (7,328)        (842)
                                                          =========    =========

Net cash inflow from operating activities                   2,289          290
                                                          =========    =========

Cash flow statement
                                                             2002         2001
                                                             #000         #000

Net cash inflow from operating activities                   2,289          290

Returns on investments and servicing of finance                 -            -

Taxation                                                        5          (38)

Capital Expenditure
Purchase of tangible fixed assets                            (156)        (142)
                                                          ---------    ---------

Sale of tangible fixed assets                                  21           40
                                                          ---------    ---------
                                                            2,159          150
                                                          ---------    ---------

Equity dividends paid                                        (140)        (165)
                                                          ---------    ---------

                                                            2,019          (15)
                                                          =========    =========

Increase/(Decrease) in cash                                 2,019          (15)
                                                          =========    =========






ACCOUNTING POLICIES


A summary of the principal accounting policies, which have been applied
consistently, is set out below :-


a.   ACCOUNTING CONVENTION

The Financial Statements have been prepared under the historical cost convention
and in accordance with United Kingdom accounting standards.


b.   BASIS OF CONSOLIDATION

The consolidated profit and loss account and balance sheet include the financial
statements of the Company and its subsidiary undertakings made up to the end of
the financial year. Inter-company commissions and administration charges are
eliminated on consolidation.


c.   DEPRECIATION

No depreciation is provided on freehold land. Other assets are depreciated on a
straight line basis except furniture, which is written down on the reducing
balance basis, so as to write off the book value over their estimated useful
lives.

Freehold property                      50 years
Equipment                              4 years and 5 years
Vehicles                               4 years
Furniture                              10%


d.   DEFERRED CHARGES AND COMMISSION

Hire purchase and leasing charges are allocated over the duration of each
agreement to give a constant periodic rate of return on the "rule of 78 basis",
after deducting initial costs and estimated costs of collection.


The "rule of 78 basis" is an allowable method under the "Accounting Issues in
the Asset Finance and Leasing Industry" SORP issued by the Finance & Leasing
Association.


An initial amount of the gross charge is credited to the profit and loss account
to cover the costs associated with the setting up of the transaction. Deferred
charges comprises the remaining amount of gross charges which is carried forward
in customers accounts receivable. It is calculated to adequately cover future
collecting and financing costs and to allow for an appropriate contribution to
profits in subsequent accounting periods.


Commissions payable are similarly deferred. Other charges including document and
option fees, are deferred on a straight line basis. Conister Limited operate
single instalment plans, recognising charges on a straight line basis.


e.   PROVISIONS

Provision is made in respect of hire purchase and finance lease receivables
where an amount is in arrears of repayments and it is the opinion of the
Directors that doubt exists regarding recoverability. The provision is based on
the level of arrears together with an assessment by the Directors of the value
of the underlying asset. Amounts are written off where it is considered that
there is no further prospect of recovery. Provision is also made in respect of
commissions recoverable from credit brokers on hire purchase and finance lease
accounts where doubt exists regarding recoverability.


A general provision is made against all unprovided balances to cover bad and
doubtful debts which have not been separately identified but are known from
experience to be present in any portfolio of bank lending. This general
provision is made at the time new business is written and released against
repayments of indebtedness.


f.   PENSIONS

The pensions cost charge for the defined benefit scheme represents the
contributions determined so as to spread the cost of pensions over employees'
working lives with the Company. For the defined contribution group personal
pension plan and the ex-gratia scheme the charge represents the actual amounts
payable.


g.   DEFERRED TAXATION

Deferred taxation is recognised in respect of all timing differences that have
originated but not reversed by the balance sheet date.


h.   GOODWILL

Purchased goodwill is capitalised and classified as an asset on the balance
sheet and amortised over its estimated useful economic life of three years.


NOTES TO THE PRELIMINARY STATEMENT


BAD AND DOUBTFUL DEBTS


The charge in respect of specific bad and doubtful debts is stated after
charging/(crediting) the following items:-

                                              2002                  2001
                                        #000        #000       #000       #000

Specific provisions made during the                  927                   841
year
Amounts written off                      363                     72
Less provisions previously made         (354)                   (63)
                                       -------              ---------
                                                       9                     9
Recoveries :-
Amounts previously provided             (534)                  (335)
Amounts previously written off           (11)                    (3)
                                       -------  ----------  ---------  ---------

                                                    (545)                 (338)
                                                ----------             ---------
                                                     391                   512
                                                ==========             =========





EARNINGS PER SHARE


Earnings per share figures are stated on the net basis, calculated on the profit
on ordinary activities after taxation.
                                                        2002           2001

Profit after tax for the year                         #233,000       #287,000
                                                     ===========      =========

Weighted average number of shares in issue          24,541,703     24,343,538
                                                     ===========      =========



The fully diluted earnings per share figure is calculated based on the maximum
take up of the scrip dividend offer in respect of the proposed final dividend
using the share price listed on The London Stock Exchange as at 31 December
2002.

Preparation of the results

The financial information set out in this statement is extracted from the draft
statutory financial statements which have not yet been audited but are not
expected to differ materially from the information given in this statement.


Final dividend

An interim dividend of      0.3p per share has been paid. The directors are
proposing a final dividend of 0.6p per share which will be paid on 23 May 2003
to shareholders on the register at close of business on 11 April 2003.


Report and Accounts

A copy of these results contained in the report for the year will be posted to
shareholders on or before 5 April, 2003 and will be available from that date
from the Company's Registered Office Conister House, Finch Road, Douglas, Isle
of Man (postal address: PO Box 17, Douglas, IM99 1AR).


END


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