TIDMENG
RNS Number : 1043I
Electric & General Inv Tst PLC
04 March 2010
ELECTRIC & GENERAL INVESTMENT TRUST PLC (the "Company")
Half Yearly Financial Report announcement for the half year ended 31 December
2009
This issuer advises that the following replaces the announcement released
erroneously on 12 February 2010 at 15.52 pm under RNS Number 1032H.
Due to an administrative error, the record date for payment of the dividend was
shown incorrectly in the Chairman's Statement. All other details remain the
same.
This announcement contains regulated information.
Financial Highlights
+------------------------+-------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
+------------------------+-------------+-------------+-----------+
| | Half year | Half year | Year |
| | ended | ended | ended |
+------------------------+-------------+-------------+-----------+
| | 31 | 31 | 30 June |
| | December | December | |
+------------------------+-------------+-------------+-----------+
| | 2009 | 2008 | 2009 |
+------------------------+-------------+-------------+-----------+
| Per ordinary share | Pence | Pence | Pence |
+------------------------+-------------+-------------+-----------+
| Net asset value | 437.35 | 380.59 | 346.70 |
| ("NAV") | | | |
+------------------------+-------------+-------------+-----------+
| Share price | 372.25 | 324.00 | 304.50 |
+------------------------+-------------+-------------+-----------+
| MSCI World Index | 723.55 | 640.05 | 585.39 |
| (Sterling excluding | | | |
| income) | | | |
+------------------------+-------------+-------------+-----------+
| Revenue return per | 2.92 | 3.52 | 10.64 |
| share | | | |
+------------------------+-------------+-------------+-----------+
| Total return per share | 98.65 | (53.38) | (85.29) |
+------------------------+-------------+-------------+-----------+
| Dividend | 2.10 | 2.00 | 10.00* |
+------------------------+-------------+-------------+-----------+
* The total dividend for the year ended 30 June 2009 includes a special dividend
of 1.94p per ordinary share.
Investment Objective
The Company's investment objective is to maximise total return while pursuing a
progressive dividend policy, where achievable, within the over-riding objective
of capital growth.
Chairman's Statement
for the half year ended 31 December 2009
Over the last six months, stock markets have responded favourably to the
government and central bank intervention, which was at its most significant at
the end of 2008 and the beginning of 2009. The NAV (excluding income) of the
Company has risen by 28.7 per cent, which was a good result both in absolute and
relative terms (the MSCI World Index increased by 23.6 per cent over the same
period).
The co-ordinated actions of central banks and governments have had the desired
effect of restoring confidence in financial markets and the recovery of the last
six months is largely a response to those policies. It appears likely that the
world economy is now faced with a period of restoration and repair in the West,
as well as continued growth in the developing economies of Asia, South America
and Central and Eastern Europe. As we have noted in previous Annual and Half
Yearly Financial Reports, the global financial crisis did not originate in
over-valued equity markets and, therefore, these markets have not been the worst
affected. There are a number of issues which will test investors over the near
term. Firstly, the volume of issuance of government debt in order to finance
the stimulus programmes; secondly, a degree of nervousness with respect to a
return of inflation and higher interest rates; and thirdly, continued good
economic relations between an increasingly inter-dependent East and West. We do
not believe that any of these issues will fundamentally derail a global economic
recovery, but there may be moments of stress associated with all of these
topics, which could impact equity markets.
On a more fundamental level, the valuation of companies remains low, even after
this substantial rise, with multiples of book or earnings at historically modest
levels, and with many companies paying dividends at a level which is very
competitive with government bonds. There is also the likelihood of very good
earnings growth, both in 2010 and 2011, which should support valuations.
Specifically, it looks likely that European stock markets will be valued at less
than ten times earnings in 2011, which is a very low level historically. The
Investment Manager remains confident that the environment for further
appreciation of the NAV is good and, as companies move away from worrying about
the availability of financing to the opportunities offered by a growing global
economy, the Company should be able to participate in this process.
Over the last six months, there have been some notable contributions to
performance; in particular, Human Genome Sciences, a biotech company with a new
treatment for Lupus, as well as holdings in HSBC, News Corp and a range of banks
and insurance companies, which have benefited from the return to a more stable
environment. While we recognise that there are undoubted uncertainties
surrounding the level of government borrowing, the return of inflationary risks
and challenges to a very benign environment for free trade, we remain convinced
that there will be significant upside to equity markets as the world economy
returns to a more stable and normal level of activity.
Dividend
The Directors have declared an interim dividend of 2.10p per ordinary share
payable on 26 March 2010 to shareholders on the Register of Members at the close
of business on 26 February 2010.
VAT Claim
In January 2010 the Company submitted a protective claim against HM Revenue &
Customs for value added tax ("VAT") paid on investment management fees between
1996 and 2000, and compound interest on such VAT for the period between 1990 and
2007. The amount of any possible reclaim is at present uncertain and the
Company has taken no account in these Financial Statements of any such
repayment.
Lindsay Bury
Chairman
12 February 2010
Income Statement
for the half year ended 31 December 2009
+-------------------+-------+--------------+--------------+--------------+
| | | (Unaudited) |
| | | Half year ended 31 December 2009 |
+-------------------+-------+--------------------------------------------+
| | | Revenue | Capital | Total |
+-------------------+-------+--------------+--------------+--------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+-------------------+-------+--------------+--------------+--------------+
| Gains/(losses) on | | - | 63,344 | 63,344 |
| investments | | | | |
+-------------------+-------+--------------+--------------+--------------+
| Income | 2 | 2,591 | - | 2,591 |
+-------------------+-------+--------------+--------------+--------------+
| Currency | | - | 15 | 15 |
| (losses)/gains | | | | |
+-------------------+-------+--------------+--------------+--------------+
| Investment | | (133) | (400) | (533) |
| management fee | | | | |
+-------------------+-------+--------------+--------------+--------------+
| VAT recoverable | 10 | - | - | - |
| on investment | | | | |
| management fees | | | | |
+-------------------+-------+--------------+--------------+--------------+
| Performance fee | | - | (147) | (147) |
+-------------------+-------+--------------+--------------+--------------+
| Administrative | | (284) | - | (284) |
| expenses | | | | |
+-------------------+-------+--------------+--------------+--------------+
| | | ------------ | ------------ | ------------ |
+-------------------+-------+--------------+--------------+--------------+
| Net return on | | 2,174 | 62,812 | 64,986 |
| ordinary | | | | |
| activities before | | | | |
| interest payable | | | | |
| and taxation | | | | |
+-------------------+-------+--------------+--------------+--------------+
| Finance costs | | (94) | (282) | (376) |
+-------------------+-------+--------------+--------------+--------------+
| | | ------------ | ------------ | ------------ |
+-------------------+-------+--------------+--------------+--------------+
| Net return on | | 2,080 | 62,530 | 64,610 |
| ordinary | | | | |
| activities before | | | | |
| taxation | | | | |
+-------------------+-------+--------------+--------------+--------------+
| Taxation | 3 | (171) | - | (171) |
+-------------------+-------+--------------+--------------+--------------+
| | | ------------ | ------------ | ------------ |
+-------------------+-------+--------------+--------------+--------------+
| Return on | | 1,909 | 62,530 | 64,439 |
| ordinary | | | | |
| activities after | | | | |
| taxation | | | | |
+-------------------+-------+--------------+--------------+--------------+
| | | ======= | ======= | ======= |
+-------------------+-------+--------------+--------------+--------------+
| Return per | 4 | 2.92 | 95.73 | 98.65 |
| ordinary share | | | | |
| (pence) | | | | |
+-------------------+-------+--------------+--------------+--------------+
| | | ======= | ======= | ======= |
+-------------------+-------+--------------+--------------+--------------+
+----------------+------------+------------+------------+------------+------------+------------+
| | (Unaudited) | (Audited) |
+----------------+--------------------------------------+--------------------------------------+
| | Half year ended 31 | Year ended 30 June 2009 |
| | December 2008 | |
+----------------+--------------------------------------+--------------------------------------+
| | Revenue | Capital | Total | Revenue | Capital | Total |
+----------------+------------+------------+------------+------------+------------+------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+------------+------------+------------+------------+------------+------------+
| Gains/(losses) | - | (36,682) | (36,682) | - | (63,255) | (63,255) |
| on investments | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| Income | 3,281 | - | 3,281 | 9,259 | - | 9,259 |
+----------------+------------+------------+------------+------------+------------+------------+
| Currency | - | 309 | 309 | - | 1,308 | 1,308 |
| (losses)/gains | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| Investment | (267) | (267) | (534) | (496) | (496) | (992) |
| management | | | | | | |
| fee | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| VAT | 290 | 290 | 580 | 851 | 687 | 1,538 |
| recoverable | | | | | | |
| on | | | | | | |
| investment | | | | | | |
| management | | | | | | |
| fees | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| Performance | - | 229 | 229 | - | 458 | 458 |
| fee | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| Administrative | (265) | - | (265) | (489) | - | (489) |
| expenses | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- |
+----------------+------------+------------+------------+------------+------------+------------+
| Net return | 3,039 | (36,121) | (33,082) | 9,125 | (61,298) | (52,173) |
| on ordinary | | | | | | |
| activities | | | | | | |
| before | | | | | | |
| interest | | | | | | |
| payable and | | | | | | |
| taxation | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| Finance | (95) | (282) | (377) | (189) | (564) | (753) |
| costs | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- |
+----------------+------------+------------+------------+------------+------------+------------+
| Net return | 2,944 | (36,403) | (33,459) | 8,936 | (61,862) | (52,926) |
| on ordinary | | | | | | |
| activities | | | | | | |
| before | | | | | | |
| taxation | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| Taxation | (645) | (762) | (1,407) | (1,986) | (796) | (2,782) |
+----------------+------------+------------+------------+------------+------------+------------+
| | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- |
+----------------+------------+------------+------------+------------+------------+------------+
| Return on | 2,299 | (37,165) | (34,866) | 6,950 | (62,658) | (55,708) |
| ordinary | | | | | | |
| activities | | | | | | |
| after | | | | | | |
| taxation | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| | ======= | ======= | ======= | ======= | ======= | ======= |
+----------------+------------+------------+------------+------------+------------+------------+
| Return per | 3.52 | (56.90) | (53.38) | 10.64 | (95.93) | (85.29) |
| ordinary | | | | | | |
| share | | | | | | |
| (pence) | | | | | | |
+----------------+------------+------------+------------+------------+------------+------------+
| | ======= | ======= | ======= | ======= | ======= | ======= |
+----------------+------------+------------+------------+------------+------------+------------+
The total column of this statement represents the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the period.
The Company has no recognised gains or losses other than those recognised in the
Income Statement above.
The accompanying notes are an integral part of the Financial Statements.
Balance Sheet
as at 31 December 2009
+----------------------+-------+---------------+---------------+---------------+
| | | (Unaudited) | (Unaudited) | (Audited) |
+----------------------+-------+---------------+---------------+---------------+
| | | 31 | 31 | 30 June |
| | | December | December | |
+----------------------+-------+---------------+---------------+---------------+
| | | 2009 | 2008 | 2009 |
+----------------------+-------+---------------+---------------+---------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------+-------+---------------+---------------+---------------+
| Investments | | | | |
+----------------------+-------+---------------+---------------+---------------+
| Investments at | | 289,828 | 259,816 | 226,736 |
| fair value through | | | | |
| profit or loss | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ------------- | ------------- | ------------- |
+----------------------+-------+---------------+---------------+---------------+
| Current assets | | | | |
+----------------------+-------+---------------+---------------+---------------+
| Debtors | | 1,813 | 1,548 | 4,042 |
+----------------------+-------+---------------+---------------+---------------+
| Cash and short | | 3,024 | 4,620 | 4,431 |
| term deposits | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ------------- | ------------- | ------------- |
+----------------------+-------+---------------+---------------+---------------+
| | | 4,837 | 6,168 | 8,473 |
+----------------------+-------+---------------+---------------+---------------+
| Creditors: amounts | | (1,987) | (10,388) | (1,745) |
| falling due within | | | | |
| one year | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ------------- | ------------- | ------------- |
+----------------------+-------+---------------+---------------+---------------+
| Net current | | 2,850 | (4,220) | 6,728 |
| assets/(liabilities) | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ------------- | ------------- | ------------- |
+----------------------+-------+---------------+---------------+---------------+
| Total assets less | | 292,678 | 255,596 | 233,464 |
| current | | | | |
| liabilities | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ------------- | ------------- | ------------- |
+----------------------+-------+---------------+---------------+---------------+
| Creditors: amounts | | | | |
| falling due after | | | | |
| more than one year | | | | |
+----------------------+-------+---------------+---------------+---------------+
| Debentures | | (7,000) | (7,000) | (7,000) |
+----------------------+-------+---------------+---------------+---------------+
| Provision for | | (9) | - | (9) |
| liabilities and | | | | |
| charges | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ------------- | ------------- | ------------- |
+----------------------+-------+---------------+---------------+---------------+
| Net assets | | 285,669 | 248,596 | 226,455 |
+----------------------+-------+---------------+---------------+---------------+
| | | ======= | ======= | ======= |
+----------------------+-------+---------------+---------------+---------------+
| Share capital and | | | | |
| reserves | | | | |
+----------------------+-------+---------------+---------------+---------------+
| Called-up share | | 3,266 | 3,266 | 3,266 |
| capital | | | | |
+----------------------+-------+---------------+---------------+---------------+
| Share premium | | 19,937 | 19,937 | 19,937 |
| account | | | | |
+----------------------+-------+---------------+---------------+---------------+
| Capital redemption | | 1,441 | 1,441 | 1,441 |
| reserve | | | | |
+----------------------+-------+---------------+---------------+---------------+
| Capital reserve | 6 | 246,733 | 209,696 | 184,203 |
+----------------------+-------+---------------+---------------+---------------+
| Revenue reserve | | 14,292 | 14,256 | 17,608 |
+----------------------+-------+---------------+---------------+---------------+
| | | ------------- | ------------- | ------------- |
+----------------------+-------+---------------+---------------+---------------+
| Equity | | 285,669 | 248,596 | 226,455 |
| shareholders' | | | | |
| funds | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ======= | ======= | ======= |
+----------------------+-------+---------------+---------------+---------------+
| Net asset value | 8 | 437.35 | 380.59 | 346.70 |
| per ordinary share | | | | |
| (pence) | | | | |
+----------------------+-------+---------------+---------------+---------------+
| | | ======= | ======= | ======= |
+----------------------+-------+---------------+---------------+---------------+
The accompanying notes are an integral part of the Financial Statements.
Reconciliation of movements in shareholders' funds
For the half year ended 31 December 2009 (Unaudited)
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | | Share | Capital | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | Share | premium | redemption | Capital | Revenue | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | capital | account | reserve | reserve | reserve | Total |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Balance | | 3,266 | 19,937 | 1,441 | 184,203 | 17,608 | 226,455 |
| at | | | | | | | |
| 30 June | | | | | | | |
| 2009 | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Return | | - | - | - | 62,530 | 1,909 | 64,439 |
| on | | | | | | | |
| ordinary | | | | | | | |
| activities | | | | | | | |
| after | | | | | | | |
| taxation | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Dividends | 5 | - | - | - | - | (5,225) | (5,225) |
| paid | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Balance | | 3,266 | 19,937 | 1,441 | 246,733 | 14,292 | 285,669 |
| at 31 | | | | | | | |
| December | | | | | | | |
| 2009 | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | ====== | ====== | ====== | ====== | ====== | ====== |
+------------+-------+------------+------------+------------+------------+------------+------------+
For the half year ended 31 December 2008 (Unaudited)
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | | Share | Capital | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | Share | premium | redemption | Capital | Revenue | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | capital | account | reserve | reserve | reserve | Total |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Balance | | 3,266 | 19,937 | 1,441 | 246,861 | 15,778 | 287,283 |
| at | | | | | | | |
| 30 June | | | | | | | |
| 2008 | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Return | | - | - | - | (37,165) | 2,299 | (34,866) |
| on | | | | | | | |
| ordinary | | | | | | | |
| activities | | | | | | | |
| after | | | | | | | |
| taxation | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Dividends | 5 | - | - | - | - | (3,821) | (3,821) |
| paid | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Balance | | 3,266 | 19,937 | 1,441 | 209,696 | 14,256 | 248,596 |
| at 31 | | | | | | | |
| December | | | | | | | |
| 2008 | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | ====== | ====== | ====== | ====== | ====== | ====== |
+------------+-------+------------+------------+------------+------------+------------+------------+
For the year ended 30 June 2009 (Audited)
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | | Share | Capital | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | Share | premium | redemption | Capital | Revenue | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | capital | account | reserve | reserve | reserve | Total |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Balance | | 3,266 | 19,937 | 1,441 | 246,861 | 15,778 | 287,283 |
| at | | | | | | | |
| 30 June | | | | | | | |
| 2008 | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Return | | - | - | - | (62,658) | 6,950 | (55,708) |
| on | | | | | | | |
| ordinary | | | | | | | |
| activities | | | | | | | |
| after | | | | | | | |
| taxation | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Dividends | 5 | - | - | - | - | (5,120) | (5,120) |
| paid | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- |
+------------+-------+------------+------------+------------+------------+------------+------------+
| Balance | | 3,266 | 19,937 | 1,441 | 184,203 | 17,608 | 226,455 |
| at | | | | | | | |
| 30 June | | | | | | | |
| 2009 | | | | | | | |
+------------+-------+------------+------------+------------+------------+------------+------------+
| | | ====== | ====== | ====== | ====== | ====== | ====== |
+------------+-------+------------+------------+------------+------------+------------+------------+
The accompanying notes are an integral part of the Financial Statements.
Cash Flow Statement
for the half year ended 31 December 2009
+--------------------------+-------+-------------+-------------+-------------+
| | | (Unaudited) | (Unaudited) | (Audited) |
+--------------------------+-------+-------------+-------------+-------------+
| | | Half | Half | Year |
| | | year | year | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ended | ended | ended |
+--------------------------+-------+-------------+-------------+-------------+
| | | 31 | 31 | 30 |
| | | December | December | June |
+--------------------------+-------+-------------+-------------+-------------+
| | | 2009 | 2008 | 2009 |
+--------------------------+-------+-------------+-------------+-------------+
| | Notes | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+-------+-------------+-------------+-------------+
| Return on ordinary | | 64,986 | (33,082) | (52,173) |
| activities before | | | | |
| taxation | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Adjustments for: | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| (Gains)/losses on | | (63,344) | 36,682 | 63,255 |
| investments | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Exchange gains | | (15) | (309) | (1,308) |
+--------------------------+-------+-------------+-------------+-------------+
| Decrease/(increase) in | | 600 | 404 | (26) |
| accrued income | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Decrease/(increase) in | | 390 | (578) | (383) |
| other debtors | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Tax on unfranked | | (102) | (202) | (740) |
| investment income | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Increase/(decrease) in | | 143 | (1,709) | (2,020) |
| creditors | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| Net cash inflow from | | 2,658 | 1,206 | 6,605 |
| operating activities | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Servicing of finance | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Debenture interest paid | | (376) | (376) | (752) |
+--------------------------+-------+-------------+-------------+-------------+
| Bank overdraft and loan | | - | (1) | (1) |
| interest paid | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| Net cash outflow from | | (376) | (377) | (753) |
| servicing of finance | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Taxation | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| UK corporation tax paid | | (1,256) | (336) | (1,178) |
+--------------------------+-------+-------------+-------------+-------------+
| Financial investment | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Purchases of investments | | (69,909) | (61,024) | (158,580) |
+--------------------------+-------+-------------+-------------+-------------+
| Sales of investments | | 72,943 | 60,349 | 162,149 |
+--------------------------+-------+-------------+-------------+-------------+
| Net (loss)/gain from | | (257) | 269 | (8,045) |
| forward foreign currency | | | | |
| exchange contracts | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| Net cash | | 2,777 | (406) | (4,476) |
| inflow/(outflow) from | | | | |
| financial investment | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| Equity dividends paid | 5 | (5,225) | (3,821) | (5,120) |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| Decrease in cash | | (1,422) | (3,734) | (4,922) |
+--------------------------+-------+-------------+-------------+-------------+
| | | ====== | ====== | ====== |
+--------------------------+-------+-------------+-------------+-------------+
| Reconciliation of net | | | | |
| cash flow to movements | | | | |
| in net funds | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Decrease in cash as | | (1,422) | (3,734) | (4,922) |
| above | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Exchange movements | | 15 | 309 | 1,308 |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| Movement in net funds in | | (1,407) | (3,425) | (3,614) |
| the period | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Net funds at start of | | (2,569) | 1,045 | 1,045 |
| period | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| Net debt at end of | | (3,976) | (2,380) | (2,569) |
| period | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ====== | ====== | ====== |
+--------------------------+-------+-------------+-------------+-------------+
| Represented by: | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| Cash | | 3,024 | 4,620 | 4,431 |
+--------------------------+-------+-------------+-------------+-------------+
| Debt due after more than | | (7,000) | (7,000) | (7,000) |
| one year | | | | |
+--------------------------+-------+-------------+-------------+-------------+
| | | ----------- | ----------- | ----------- |
+--------------------------+-------+-------------+-------------+-------------+
| | | (3,976) | (2,380) | (2,569) |
+--------------------------+-------+-------------+-------------+-------------+
| | | ====== | ====== | ====== |
+--------------------------+-------+-------------+-------------+-------------+
The accompanying notes are an integral part of the Financial Statements.
Notes to the Half Yearly Financial Statements (Unaudited)
for the half year ended 31 December 2009
1. Accounting Policies
The Financial Statements have been prepared in accordance with applicable UK
Accounting Standards, with pronouncements on half yearly reporting issued by the
Accounting Standards Board and with the Statement of Recommended Practice
("SORP") 'Financial Statements of Investment Trust Companies and Venture Capital
Trusts' issued in January 2009. The adoption of the January 2009 SORP has no
effect on the Financial Statements of the Company, other than the requirement
separately to disclose capital reserves that relate to the revaluation of
investments held at the reporting date. This new requirement replaces the
previous requirement to disclose the value of the capital reserve that was
unrealised. They have also been prepared on the assumption that approval as an
investment trust will continue to be granted. The Financial Statements have
been prepared on a going concern basis.
The Financial Statements and the net asset value per share figures have been
prepared in accordance with UK Generally Accepted Accounting Practice ("UK
GAAP").
The Half Yearly Report and Financial Statements have been prepared using the
same accounting policies as the preceding Annual Financial Report for the year
ended 30 June 2009.
2. Income
+------------------------+-------------+-------------+------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+------------------------+-------------+-------------+------------+
| | Half year | Half year | Year |
+------------------------+-------------+-------------+------------+
| | ended | ended | ended |
+------------------------+-------------+-------------+------------+
| | 31 | 31 | 30 June |
| | December | December | |
+------------------------+-------------+-------------+------------+
| | 2009 | 2008 | 2009 |
+------------------------+-------------+-------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------+-------------+-------------+------------+
| Income from | | | |
| investments | | | |
+------------------------+-------------+-------------+------------+
| UK listed - franked | 856 | 576 | 1,492 |
+------------------------+-------------+-------------+------------+
| Dividend income | 1,683 | 2,031 | 6,446 |
+------------------------+-------------+-------------+------------+
| Fixed interest income | 16 | 529 | 739 |
+------------------------+-------------+-------------+------------+
| | ---------- | ---------- | ---------- |
+------------------------+-------------+-------------+------------+
| | 2,555 | 3,136 | 8,677 |
+------------------------+-------------+-------------+------------+
| Other interest | | | |
| receivable and similar | | | |
| income | | | |
+------------------------+-------------+-------------+------------+
| Bank interest | 23 | 145 | 143 |
+------------------------+-------------+-------------+------------+
| Interest on VAT | - | - | 417 |
| recoverable | | | |
+------------------------+-------------+-------------+------------+
| Underwriting | 13 | - | 22 |
| commission | | | |
+------------------------+-------------+-------------+------------+
| | ---------- | ---------- | ---------- |
+------------------------+-------------+-------------+------------+
| Total income | 2,591 | 3,281 | 9,259 |
+------------------------+-------------+-------------+------------+
| | ====== | ====== | ====== |
+------------------------+-------------+-------------+------------+
3. Taxation
The taxation expense reflected in the Income Statement is based on the Company's
best estimate of the weighted average annual income tax rate expected for the
full financial year. The estimated average annual tax rate used for the year to
30 June 2010 is 28%.
4. Return per ordinary share
+------------------------------+--------------+--------------+--------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+------------------------------+--------------+--------------+--------------+
| | Half | Half | Year |
| | year | year | |
+------------------------------+--------------+--------------+--------------+
| | ended | ended | ended |
+------------------------------+--------------+--------------+--------------+
| | 31 | 31 | 30 June |
| | December | December | |
+------------------------------+--------------+--------------+--------------+
| | 2009 | 2008 | 2009 |
+------------------------------+--------------+--------------+--------------+
| | Pence | Pence | Pence |
+------------------------------+--------------+--------------+--------------+
| Revenue return per ordinary | 2.92 | 3.52 | 10.64 |
| share | | | |
+------------------------------+--------------+--------------+--------------+
| Capital return per ordinary | 95.73 | (56.90) | (95.93) |
| share | | | |
+------------------------------+--------------+--------------+--------------+
| | ------------ | ------------ | ------------ |
+------------------------------+--------------+--------------+--------------+
| Total return per ordinary | 98.65 | (53.38) | (85.29) |
| share | | | |
+------------------------------+--------------+--------------+--------------+
| | ======= | ======= | ======= |
+------------------------------+--------------+--------------+--------------+
| The figures above are based | | | |
| on the following: | | | |
+------------------------------+--------------+--------------+--------------+
| | GBP000 | GBP000 | GBP000 |
+------------------------------+--------------+--------------+--------------+
| Revenue return | 1,909 | 2,299 | 6,950 |
+------------------------------+--------------+--------------+--------------+
| Capital return | 62,530 | (37,165) | (62,658) |
+------------------------------+--------------+--------------+--------------+
| | ------------ | ------------ | ------------ |
+------------------------------+--------------+--------------+--------------+
| Total return | 64,439 | (34,866) | (55,708) |
+------------------------------+--------------+--------------+--------------+
| | ======= | ======= | ======= |
+------------------------------+--------------+--------------+--------------+
| Weighted average number of | 65,318,174 | 65,318,174 | 65,318,174 |
| ordinary shares in issue | | | |
+------------------------------+--------------+--------------+--------------+
5. Dividends
+------------------------+--------------+--------------+--------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+------------------------+--------------+--------------+--------------+
| | Half year | Half year | Year |
+------------------------+--------------+--------------+--------------+
| | ended | ended | ended |
+------------------------+--------------+--------------+--------------+
| | 31 | 31 | 30 June |
| | December | December | |
+------------------------+--------------+--------------+--------------+
| | 2009 | 2008 | 2009 |
+------------------------+--------------+--------------+--------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------+--------------+--------------+--------------+
| Final dividend for | 5,225 | 3,821 | 3,821 |
| 2009: 8.00p | | | |
| (2008: 5.85p) | | | |
+------------------------+--------------+--------------+--------------+
| Interim dividend for | - | - | 1,306 |
| 2009: 2.00p | | | |
+------------------------+--------------+--------------+--------------+
| Refund of unclaimed | - | - | (7) |
| dividends by Registrar | | | |
+------------------------+--------------+--------------+--------------+
| | ------------ | ------------ | ------------ |
+------------------------+--------------+--------------+--------------+
| | 5,225 | 3,821 | 5,120 |
+------------------------+--------------+--------------+--------------+
| | ======= | ======= | ======= |
+------------------------+--------------+--------------+--------------+
The Company has declared an interim dividend in respect of the year ending 30
June 2010 of 2.10p (2009: 2.00p) per ordinary share which will be paid on 26
March 2010 to ordinary shareholders on the Register of Members on 26 February
2010.
6. Analysis of capital reserve
The capital reserve reflected in the Balance Sheet at 31 December 2009 includes
gains of GBP13,870,000 (31 December 2008 losses of GBP34,633,000; 30 June 2009
losses of GBP57,966,000) which relate to the revaluation of investments held at
the reporting date.
7. Transaction costs
During the half year ended 31 December 2009, expenses were incurred in acquiring
or disposing of investments classified as fair value through profit or loss.
These have been expensed through capital and are included within gains/(losses)
on investments in the Income Statement.
The total costs were as follows:
+--------------------------+-------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
+--------------------------+-------------+-------------+-----------+
| | Half year | Half | Year |
| | | year | |
+--------------------------+-------------+-------------+-----------+
| | ended | ended | ended |
+--------------------------+-------------+-------------+-----------+
| | 31 December | 31 | 30 June |
| | | December | |
+--------------------------+-------------+-------------+-----------+
| | 2009 | 2008 | 2009 |
+--------------------------+-------------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+-------------+-------------+-----------+
| Purchases | 123 | 93 | 188 |
+--------------------------+-------------+-------------+-----------+
| Sales | 64 | 57 | 114 |
| | ---------- | ---------- | --------- |
+--------------------------+-------------+-------------+-----------+
| | 187 | 150 | 302 |
| | ====== | ====== | ====== |
+--------------------------+-------------+-------------+-----------+
8. Net asset value per ordinary share
+------------------------------+----------------+----------------+----------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+------------------------------+----------------+----------------+----------------+
| | As at | As at | As at |
+------------------------------+----------------+----------------+----------------+
| | 31 | 31 | 30 June |
| | December | December | |
+------------------------------+----------------+----------------+----------------+
| | 2009 | 2008 | 2009 |
+------------------------------+----------------+----------------+----------------+
| The net assets attributable | | | |
| to the ordinary shares were | | | |
| as follows: | | | |
+------------------------------+----------------+----------------+----------------+
| Net assets attributable | GBP285,669,000 | GBP248,596,000 | GBP226,455,000 |
+------------------------------+----------------+----------------+----------------+
| Number of ordinary shares | 65,318,174 | 65,318,174 | 65,318,174 |
| | ---------- | ---------- | ---------- |
+------------------------------+----------------+----------------+----------------+
| Net asset value per share | 437.35 | 380.59 | 346.70 |
| (pence) | ====== | ====== | ====== |
+------------------------------+----------------+----------------+----------------+
9. Financial information
The financial information in the Half Yearly Report and Financial Statements
does not comprise statutory accounts within the meaning of Section 435 of the
Companies Act 2006. The financial information for the year ended 30 June 2009
has been extracted from the published Annual Financial Report that has been
delivered to the Registrar of Companies and on which the Report of the Auditor
was unqualified under Section 498 of the Companies Act 2006. The Half Yearly
Report and Financial Statements have been prepared using the same accounting
policies as the preceding Annual Financial Report for the year ended 30 June
2009.
10. Related Party Transactions
There have been no related party transactions during the half year ended 31
December 2009 that have materially affected the financial position or the
performance of the Company.
11. Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company, and the way in which
they are managed, have not changed materially since the publication of the
Annual Financial Report for the year ended 30 June 2009 and can be found in
detail in this publication. The Annual Financial Report is available on the
Company's website, www.electricandgeneral.com, or alternatively, a copy can be
requested from the Company Secretary.
12. Contingent assets
On 5 November 2007, the European Court of Justice ruled that management fees on
investment trusts should be exempt from VAT. HM Revenue & Customs ("HMRC") has
accepted the ruling and acknowledge its liability to pay claims in respect of
VAT borne by investment companies. The Company has not been charged VAT on its
investment management fees from October 2007 and administration fees from
October 2008.
During the year ended 30 June 2009 the Company received refunds totalling
GBP1,538,000 (excluding simple interest) for VAT charged on investment
management fees from Taube Hodson Stonex Partners LLP (for the period 2004 to
2007) and Henderson Global Investors Limited, the former investment manager, for
the periods 1990 to 1996 and 2000 to 2004. This amount was included in the
prior years' Financial Statements and was allocated between revenue and capital
in line with the accounting policy for the periods in which the VAT was charged.
In January 2010 the Company submitted a protective claim against HMRC for VAT
paid on investment management fees between 1996 and 2000, and compound interest
on such VAT for the period between 1990 and 2007. The amount of any possible
reclaim is at present uncertain and the Company has taken no account in the
Financial Statements of any such repayment.
Responsibility Statement of the Directors
in respect of the Half Yearly Report and Financial Statements for the half year
ended 31 December 2009
The Directors confirm that, to the best of their knowledge:
· the Financial Statements contained within the Half Yearly Report and
Financial Statements have been prepared in accordance with the Accounting
Standards Board's Statement 'Half Yearly Financial Reports'; and
· the Chairman's Statement includes a fair review of the information
required by 4.2.7R and 4.2.8R of the FSA's Disclosure and Transparency Rules.
The Half Yearly Report and Financial Statements were approved by the Board and
the above Responsibility Statement has been signed on it's behalf by Lindsay
Bury, Chairman.
The Half Yearly Report and Financial Statements for the half year ended 31
December 2009 will be posted to shareholders in February 2010 and thereafter
copies will be available upon request at the Company's registered office: 55
Moorgate, London EC2R 6PA. The Half Yearly Report and Financial Statements will
also shortly be available on the Company's website, www.electricandgeneral.com.
For further information contact
Rachael Nelson
BNP Paribas Secretarial Services Limited
Company Secretary
Tel: 020 7410 3132
4 March 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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