RNS Number:6086U
Henderson Smaller Cos Inv Tst PLC
26 January 2004
HENDERSON GLOBAL INVESTORS
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
26 January 2004
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
Highlights
Strong performance:
* Net asset value per share up 28%
* Benchmark index up 23%
The Chairman's Statement:
When I reported to you last July, in the annual report for the year
ended 31 May 2003, I expressed confidence that we would perform well in
the year ahead. In the interim period to 30 November 2003 our net asset
value per share rose by 28% to 156p, compared with an increase in the
benchmark index, on a total return basis, of 23%. This performance
suggests that our confidence in the Trust's new management team has been
well placed. It has been most encouraging to see the Company's name
feature strongly in recent performance tables.
Our portfolio, with its bias towards economically sensitive sectors such
as Media, Electronics, Support Services and Software and Computer
Services, has benefited from the global economic recovery. To fund
additional investment in these sectors our managers have exercised
strong selling disciplines. Increased bid activity and some revival in
the new issues market have provided opportunities to take profits and to
reinvest in new businesses. Nevertheless, the structure of the portfolio
remains largely as outlined in some detail in the annual report.
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
Chairman's Statement cont/d...
Our debenture stock is expensive to service but the gearing which it
provides has helped us to make the most of the rising market. In
addition, we have made some use of our short-term borrowing facility
during the period and, subject to regular review by the board, expect to
continue to do so.
The revenue account has strengthened, reflecting in part the emphasis
that our fund managers place on investment income. However, capital
growth remains our priority. We shall maintain the discipline of
allocating all our costs, including interest payable, against revenue.
After three years of negative returns, share prices rose in 2003 with
smaller companies performing much more strongly than the market as a
whole. That outperformance is unlikely to continue to so marked an
extent. We remain confident, however, that the active management of our
portfolio will provide additional value for shareholders as we approach
the continuation vote scheduled for September 2004.
J Dudley Fishburn
Chairman
23 January 2004
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
Group Statement of Total Return (incorporating the revenue account)+
for the half year ended 30 November 2003
Half year ended Half year ended Year ended
30 November 2003 30 November 2002 31 May 2003 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Total
capital
gains/(losses)
from
Investments - 39,552 39,552 - (100,987) (100,987) - (85,899) (85,899)
Income 1,956 - 1,956 1,869 - 1,869 4,042 - 4,042
from fixed
asset
investments
Other
interest
receivable
and similar
Income 87 - 87 20 - 20 98 - 98
---------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------
Gross 2,043 39,552 41,595 1,889 (100,987) (99,098) 4,140 (85,899) (81,759)
revenue
and
capital
gains/(losses)
Management (343) - (343) (796) - (796) (1,078) - (1,078)
fee
Other (173) - (173) (221) - (221) (408) - (408)
administrative
expenses
Irrecoverable (77) - (77) (145) - (145) (202) - (202)
VAT
---------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------
Net
return/(loss)
on ordinary
activities
before
interest
payable
and 1,450 39,552 41,002 727 (100,987) (100,260) 2,452 (85,899) (83,447)
taxation
Interest (1,069) - (1,069) (1,145) - (1,145) (2,208) - (2,208)
payable
---------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------
Net
return/(loss)
on ordinary
activities 381 39,552 39,933 (418) (100,987) (101,405) 244 (85,899) (85,655)
before
taxation
Taxation
on net
return on
ordinary
Activities - - - 1 - 1 1 - 1
---------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------
Net
return/(loss)
on ordinary
activities 381 39,552 39,933 (417) (100,987) (101,404) 245 (85,899) (85,654)
after
taxation
Final - - - 24 - 24 (561) - (561)
dividend:
0.50p
(note 4)
---------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------
Transfer 381 39,552 39,933 (393) (100,987) (101,380) (316) (85,899) (86,215)
to/(from)
reserves
======= ======= ======= ======= ======= ======= ======= ======= =======
Return/(loss) 0.33p 33.82p 34.15p (0.33)p (80.18)p (80.51)p 0.20p (69.35)p (69.15)p
per ordinary
share
(note 1)
======= ======= ======= ======= ======= ======= ======= ======= =======
+ The revenue columns of this statement represent the consolidated revenue
accounts of the Group (see note 3).
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
Group Balance Sheet
at 30 November 2003
30 November 2003 30 November 2002 31 May 2003 (audited)
#'000 #'000 #'000
Fixed asset investments
UK listed investments at market value 193,753 139,017 153,434
AIM investments at market value 12,187 8,657 7,368
Unquoted investments at 572 896 896
directors' valuation
---------- ---------- ----------
206,512 148,570 161,698
---------- ---------- ----------
Current assets
Debtors 603 6,103 1,571
Cash at bank and short term deposits 269 2,465 2,719
---------- ---------- ----------
872 8,568 4,290
Creditors : amounts falling due within
one year (4,961) (5,397) (3,498)
---------- ---------- ----------
Net current (liabilities)/assets (4,089) 3,171 792
---------- ---------- ----------
Total assets less current liabilities 202,423 151,741 162,490
Creditors: amounts falling due after
more than one year (20,000) (20,000) (20,000)
---------- ---------- ----------
Total net assets 182,423 131,741 142,490
---------- ---------- ----------
Capital and reserves
Called-up share capital 29,248 30,635 29,248
Other capital reserves 149,303 97,692 109,751
Revenue reserve 3,872 3,414 3,491
---------- ---------- ----------
Shareholders' funds (including non-
equity interests of #9,000;
2002: #9,000) 182,423 131,741 142,490
====== ====== ======
Net asset value per ordinary share 156.0p 107.5p 121.8p
====== ====== ======
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
Group Cash Flow Statement
for the half year ended 30 November 2003
Half year ended Year ended
Half year ended 30 November 2002 31 May 2003
30 November 2003 #'000 (audited)
#'000 #'000
Net cash inflow from operating activities 1,918 1,691 2,797
Net cash outflow from servicing of finance (1,051) (101) (1,161)
Net tax recovered - 1 5
Net cash (outflow)/inflow from
financial investment (5,332) 22,631 27,253
Equity dividends paid (585) (656) (656)
Management of liquid resources - - -
---------- ---------- ----------
Net cash (outflow)/inflow before financing (5,050) 23,566 28,238
Net cash inflow/(outflow) from financing 2,600 (21,143) (25,560)
---------- ---------- ----------
(Decrease)/increase in cash (2,450) 2,423 2,678
====== ====== ======
Reconciliation of net revenue return to net cash inflow from operating activities
Net revenue before interest payable and taxation 1,450 727 2,452
Decrease in accrued income 548 793 194
Decrease in debtors 10 166 135
(Decrease)/increase in creditors (90) 5 16
---------- ---------- ----------
Net cash inflow from operating activities 1,918 1,691 2,797
====== ====== ======
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash as above (2,450) 2,423 2,678
Cash inflow from management of liquid resources - - -
Cash (inflow)/outflow from debt financing (2,600) 8,000 8,000
---------- ---------- ----------
Change in net debt resulting from cash flows (5,050) 10,423 10,678
Exchange movements - 2 1
---------- ---------- ----------
Movement in net debt during the period (5,050) 10,425 10,679
Net debt at the beginning of the period (17,281) (27,960) (27,960)
---------- ---------- ----------
Net debt at the end of the period (22,331) (17,535) (17,281)
====== ====== ======
Represented by:
Cash at bank and short term deposits 269 2,465 2,719
Debt falling due within one year (2,600) - -
Debt falling due after more than one year (20,000) (20,000) (20,000)
---------- ---------- ----------
(22,331) (17,535) (17,281)
====== ====== ======
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
Notes
1. Return/(loss) per ordinary share
The revenue return per ordinary share is based on the earnings
attributable to the ordinary shares of #381,000 (half year ended 30
November 2002: losses of #417,000; year ended 31 May 2003: earnings of
#245,000) and on the weighted average number of ordinary shares in issue
during the half year of 116,956,840 (half year ended 30 November 2002:
125,954,417; year ended 31 May 2003: 123,856,800).
The capital return per ordinary share is based on the net capital gains
for the half year of #39,552,000 (half year ended 30 November 2002: net
capital losses of #100,987,000; year ended 31 May 2003: net capital
losses of #85,899,000) and on the weighted average number of ordinary
shares in issue during the half year of 116,956,840 (half year ended 30
November 2002: 125,954,417; year ended 31 May 2003: 123,856,800).
2. Net asset value per ordinary share
The net asset value per ordinary share is based on the net assets
attributable to the ordinary shares of #182,414,000 (30 November 2002:
#131,732,000; 31 May 2003: #142,481,000) and on the 116,956,840 ordinary
shares in issue (30 November 2002: 122,501,840; 31 May 2003:
116,956,840).
3. Basis of consolidation
The Group accounts consolidate the accounts of the Company and of its
wholly owned subsidiary undertaking, Henderson Smaller Companies Finance
Limited.
4. Interim Dividend
No interim dividend has been declared (2002: nil).
The final dividend accrued in respect of the year ended 31 May 2003
at 0.5p per ordinary share amounted to #585,000. The buy-backs of the
Company's ordinary shares, after 31 May 2002 but before the record date
of the final dividend for the year ended on that date, resulted in a
write-back of #24,000 for dividends accrued in respect of the year ended
31 May 2002 but not in the event payable. The #561,000 shown is the sum
of these two figures.
5. Accounts for the year ended 31 May 2003
The figures and financial information for the year ended 31 May
2003 are an extract from the latest published accounts of the Group and
do not constitute the statutory accounts for that year. Those accounts
have been delivered to the Registrar of Companies and included the
report of the auditors which was unqualified and did not contain a
statement under either section 237(2) or 237(3) of the Companies Act
1985.
6. Interim Report
The full interim report will be posted to shareholders in February
2004 and copies will be available thereafter from the Secretary at the
Company's Registered Office, 4 Broadgate, London EC2M 2DA.
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
Largest Investments
The 60 largest investments at 30 November 2003 were as follows:
Valuation at Valuation at
30 November 2003 30 November 2003
#'000 #'000
Informa 7,627 Scottish Radio 2,243
Games Workshop 7,258 Kidde 2,241
W S Atkins 7,024 Domnick Hunter 2,176
Clinton Cards 6,671 Capital & Regional 2,056
Balfour Beatty 6,401 Taylor Nelson Sofres 1,976
Interserve 5,074 Rotork 1,961
Bellway 4,879 Punch Taverns 1,954
Westbury 4,387 Marshalls 1,930
ITNET 4,217 Pillar Property 1,913
Domino Printing Sciences 4,202 Greene King 1,840
WSP Group 3,857 SIG 1,800
Tribal 3,700 Greggs 1,767
Enodis 3,677 *Systems Union 1,663
Meggitt 3,627 First Technology 1,657
Intermediate Capital 3,559 Laird 1,632
Taylor & Francis 3,536 Paragon 1,589
Mouchel 3,164 Spectris 1,574
Bovis Homes 3,157 *CODASciSys 1,534
Go-Ahead 3,020 *Ask Central 1,517
NHP 2,906 Wembley 1,515
Grainger Trust 2,838 Shaftesbury 1,512
*Mayborn 2,779 Ulster Television 1,506
RPS Group 2,730 Euromoney Institutional Investor 1,496
Headlam 2,587 Ultra Electronic 1,449
Chrysalis 2,570 Isotron 1,430
ICM Computer 2,425 Porvair 1,411
Topps Tiles 2,387 Brit Insurance 1,406
Intec Telecom Systems 2,346 Carillion 1,405
royalblue 2,280 SVB Holdings 1,399
GWR Group 2,274 *Enterprise 1,316
* listed on the Alternative Investment Market
These investments total #168,027,000 or 81.36% of the portfolio.
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THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited interim results for the half year ended 30 November 2003
For further information please contact:
Neil Hermon
The Henderson Smaller Companies Investment Trust plc
Telephone: 020 7818 4351
or
Theresa Wat
The Henderson Smaller Companies Investment Trust plc
Telephone: 020 7818 4644
or
Stephen Westwood
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 5517
or
Stephen Phillips
Associate Director
Henderson Global Investors
Telephone: 020 7818 6417
or
Vicki Staveacre
Press Office
Henderson Global Investors
Telephone: 020 7818 4222
This information is provided by RNS
The company news service from the London Stock Exchange
END
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