RNS Number:3102H
TR European Growth Trust PLC
11 February 2003
11 February 2003
TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
* 3 consecutive quarters of outperformance during calendar year 2002
* Gearing reduced to zero
HIGHLIGHTS
Unaudited Unaudited Audited % change
31 December Assets 31 December 30 June
2001 2002 2002
#'000 #'000 #'000
289,912 Total net assets 217,834 274,946 -20.8
% Divided between: % %
104.7 Quoted equities 90.5 97.5
5.9 Unquoted equities 7.5 5.7
1.6 Convertibles - 0.9
(12.2) Net current assets/(liabilities) 2.0 (4.1)
----- ----- -----
100.0 100.0 100.0
==== ==== ====
Net asset value per:
179.62p Ordinary share (undiluted) 137.42p 170.35p -19.3
178.20p Ordinary share (fully diluted)* - 169.89p
153.50p Ordinary share price 107.00p 144.00p -25.7
14.54% Discount to NAV (undiluted) 22.14% 15.47%
13.86% Discount to NAV (fully diluted) - 15.24%
27.50p Warrant price 2.00p 10.75p -81.4
279.86 FTSE World Europe (ex UK) Index - # 199.56 255.12 -21.8
326.84 - Local 217.63 280.44 -22.4
123.62 HSBC Smaller Europe (ex UK) Index - # 100.15 123.35 -18.8
* Fully diluted assumes conversion of all outstanding warrants.
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TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
CHAIRMAN'S STATEMENT
The market and our results
Stock markets around the world and particularly in Europe have continued to
fall sharply due to a combination of worries. The Middle East looms large
and the underlying questions over the course of economies remain. Fears over
the solvency of financial institutions have increased and the spiral of "the
more it falls the more we have to sell" is continuing to cause severe lack
of confidence. TREG has not escaped this decline but we have managed to hold
up a little better than the general market, as summarised above. On a
broader note we continue to stabilise the Company's relative performance
recording three outperforming quarters in calendar 2002, a pleasing trend
after a torrid 2001. As usual we have recorded a loss on our revenue
account. This is due to our dividend receipts predominantly falling into our
second half year.
Share price
The share price performed less well than our assets bringing about a
widening of our discount to underlying assets. The directors' authority to
buy back stock for cancellation was refreshed at the AGM and we remain alert
to appropriate opportunities to utilise these powers. Since the end of June
to date we have bought back 3,435,128 shares. These buy-backs have enhanced
the Company's NAV per share by 0.67p.
Prospects
At a time when uncertainty prevails and so much seems likely to happen in
the next few months it is difficult to predict the future. We feel that TREG
is now more conservatively positioned with no borrowings and that the
current market disarray should present our Manager with occasional
opportunities to select moneymaking ideas. We are encouraged by our
stabilisation and improvement in relative performance and intend, markets
willing, to make absolute progress again.
Shareholder Question and Answer Session
Following the suggestion put forward at the AGM, we will be holding an
informal Question and Answer session for shareholders. This will be held on
Monday 24 March 2003 at 4 Broadgate from 10.00 am to 11.00 am. Those
shareholders who wish to attend are asked to contact the Company Secretary
in order to allow appropriate arrangements to be made.
Audley Twiston-Davies
Chairman
10 February 2003
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TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
Group Statement of Total Return (incorporating the revenue account)
for the half year ended 31 December 2002
(Unaudited) (Unaudited) (Audited)
Half year ended 31 December Half year ended 31 December Year ended 30 June
2002 2001 2002
Revenue Capital Total Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Total capital losses from - (52,210) (52,210) - (114,696) (114,696) - (128,265) (128,265)
investments
Income from fixed asset
investments 428 - 428 1,176 - 1,176 5,513 - 5,513
Other interest receivable
and similar income 648 - 648 73 - 73 141 - 141
------- -------- -------- ------- --------- --------- ------- -------- --------
Gross revenue and capital
losses 1,076 (52,210) (51,134) 1,249 (114,696) (113,447) 5,654 (128,265) (122,611)
Management fee (491) (1,966) (2,457) (523) (2,092) (2,615) (1,016) (4,064) (5,080)
Other administrative
expenses (256) - (256) (423) - (423) (602) - (602)
------- -------- -------- ------- --------- --------- ------- -------- --------
Net return/(loss) on
ordinary activities before
interest payable
and taxation 329 (54,176) (53,847) 303 (116,788) (116,485) 4,036 (132,329) (128,293)
Interest payable (49) (196) (245) (332) (1,329) (1,661) (416) (1,666) (2,082)
------- -------- -------- ------- --------- --------- ------- -------- --------
Net return/(loss) on
ordinary activities before
taxation 280 (54,372) (54,092) (29) (118,117) (118,146) 3,620 (133,995) (130,375)
Taxation (charge)/relief on
ordinary activities (498) 530 32 (185) 238 53 (1,109) 765 (344)
------- -------- -------- ------- --------- --------- ------- -------- --------
Net (loss)/return on
ordinary activities
after taxation (218) (53,842) (54,060) (214) (117,879) (118,093) 2,511 (133,230) (130,719)
Appropriations - dividends
Final 2002: 1.45p - - - - - - (2,340) - (2,340)
Over accrual prior year
(note 4) 34 - 34 - - - - - -
------- -------- -------- ------- --------- --------- ------- -------- --------
Transfer (from)/to
reserves (184) (53,842) (54,026) (214) (117,879) (118,093) 171 (133,230) (133,059)
======= ======== ======== ======= ========= ========= ======= ======== ========
(Loss)/return per ordinary
share (note 1) (0.14)p (33.69)p (33.83)p (0.13)p (73.04)p (73.17)p 1.56p (82.55)p (80.99)p
- Basic
- Diluted - - - - - - - - -
======= ======== ======== ======= ========= ========= ======= ======== ========
The revenue columns of this statement represent the revenue accounts of the
Group.
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TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
Group Balance Sheets
as at 31 December 2002
(Unaudited) (Unaudited) (Audited)
31 December 31 December 30 June
2002 2001 2002
#'000 #'000 #'000
Fixed assets
Investments at valuation 213,447 325,403 286,119
----------- ----------- -----------
Current assets
Debtors 283 955 2,373
Cash at bank 4,309 2 2,839
----------- ----------- -----------
4,592 957 5,212
Creditors - amounts falling due
within one year (205) (36,448) (16,385)
----------- ----------- -----------
Net current assets/(liabilities) 4,387 (35,491) (11,173)
----------- ----------- -----------
Total net assets 217,834 289,912 274,946
=========== =========== ===========
Capital and reserves
Called up share capital 19,814 20,175 20,175
Share premium 115,421 115,421 115,421
Other capital reserves 73,003 144,921 129,570
Revenue reserve 9,596 9,395 9,780
----------- ----------- -----------
217,834 289,912 274,946
=========== =========== ===========
Net asset value per share (note 2) 137.42p 179.62p 170.35p
- undiluted
Net asset value per share (note 2) - 178.20p 169.89p
- fully diluted
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TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
Group Cash Flow Statement
for the half year ended 31 December 2002
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
31 December 2002 31 December 2001 30 June 2002
#'000 #'000 #'000
Net cash outflow from operating activities (1,640) (1,423) (1,029)
Net cash outflow from servicing of finance (179) (1,683) (2,150)
Net tax recovered 211 158 524
Net cash inflow from financial investment 18,690 108,536 137,454
Equity dividends paid (2,306) (2,340) (2,340)
Net cash outflow from financing (13,867) (102,446) (132,381)
----------- ----------- -----------
Increase in cash 909 802 78
=========== =========== ===========
Reconciliation of operating revenue to net cash outflow from operating activities
Net revenue before interest payable and taxation 329 303 4,036
Decrease in accrued income 67 512 600
Decrease in other debtors 2 41 -
Decrease in other creditors (31) (86) (149)
Management charge taken to other capital reserves (1,966) (2,092) (4,064)
Overseas withholding tax suffered (41) (101) (689)
Scrip dividends included in investment income - - (763)
----------- ----------- -----------
(1,640) (1,423) (1,029)
=========== =========== ===========
Reconciliation of net cash flow to movement in net funds/(debt)
Increase in cash 909 802 78
Net repayment of loans 10,781 102,454 132,389
----------- ----------- -----------
11,690 103,256 132,467
Exchange differences 312 (2,966) (3,703)
----------- ----------- -----------
Movement in net funds/(debt) in period 12,002 100,290 128,764
Net debt at beginning of period (7,701) (136,465) (136,465)
----------- ----------- -----------
Net funds/(debt) at period end 4,301 (36,175) (7,701)
=========== =========== ===========
Represented by:
Cash at bank 4,309 2 2,839
Bank loans and overdrafts (8) (36,177) (10,540)
----------- ----------- -----------
4,301 (36,175) (7,701)
=========== =========== ===========
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TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
Notes:
1. (Loss)/return per ordinary share
Revenue loss per ordinary share is based on the net loss
attributable to the ordinary shares of #218,000 (half year ended 31
December 2001: loss #214,000; year ended 30 June 2002: gain #2,511,000)
and on the weighted average number of shares in issue during the half
year ended 31 December 2002 of 159,782,840 (half year ended 31 December
2001: 161,397,156; year ended 30 June 2002: 161,398,674).
Capital return per ordinary share is based on net capital losses
for the half year ended 31 December 2002 of #53,842,000 (half year ended
31 December 2001: #117,879,000; year ended 30 June 2002: #133,230,000)
and on the weighted average number of shares in issue as shown above.
The calculation of the fully diluted revenue and capital returns
per ordinary share are carried out in accordance with Financial
Reporting Standard 14, Earnings per Share ("FRS 14"). For the purposes
of calculating diluted revenue and capital returns per share, the number
of shares is the weighted average used in the calculation plus the
number of shares deemed to be issued for no consideration on exercise of
all warrants, by reference to the average price of the ordinary shares
during the year. No dilution is applicable for the half years ended 31
December 2002 and 31 December 2001.
2. Net asset value per ordinary share
Undiluted net asset value per ordinary share is based on the
158,515,246 ordinary shares in issue at 31 December 2002 (31 December
2001: 161,400,217; 30 June 2002: 161,400,217).
The diluted net asset value per ordinary share, as disclosed on the
balance sheet, is calculated in accordance with the SORP, based on the
assumption that 18,890,205 warrants in issue at 31 December 2002 (31
December 2001: 18,890,362; 30 June 2002: 18,890,362) were converted into
ordinary shares. Dilution is assumed to occur only if the diluted net
asset value is greater than the subscription price of 166p.
3. Issued share capital
On 30 October 2002, 157 warrants were exercised at a price of 166p resulting
in the issue of 157 new ordinary shares. During the period, the Company
repurchased for cancellation 2,885,128 of its own issued shares. At 31
December 2002 there were 158,515,246 ordinary shares in issue. Since the end
of the period the Company has repurchased for cancellation a further 550,000
of its own issued shares. Therefore there are to date 157,965,246 ordinary
shares in issue.
4. Dividends
No interim dividend has been declared (2001: nil). The dividend payable
in respect of the year ended 30 June 2002, at 1.45p per ordinary share,
amounted to #2,340,000. The buy-backs of the Company's ordinary shares,
after 30 June 2002 but before the record date of the final dividend for
the year ended on that date, resulted in a write-back of #34,000 for
dividends accrued in the year ended 30 June 2002 but not in the event
payable.
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TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
Notes (cont'd):
5. Comparative information
The financial information contained in this interim statement does
not constitute statutory accounts as defined in section 240 of the
Companies Act 1985. The financial information for the six months ended
31 December 2001 and 31 December 2002 have not been audited. The figures
and financial information for the year ended 30 June 2002 are an extract
from the latest published accounts and do not constitute 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 statement
The interim accounts were approved by the directors on 10 February
2003.
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TR EUROPEAN GROWTH TRUST PLC
Unaudited Interim Results
for the half year ended 31 December 2002
Thirty Largest Investments
Market Value at 31 December 2002
Stock Activity #'000
Naspers (other) Media company with pay tv and interactive products 14,204
Heijmans (NL) Broadly based construction company 9,110
*BrainLAB (D) Medical technology company 8,782
Rapala VMC (SF) Manufacturer and distributor of fishing-related products 8,721
Sjaelso Gruppen (DK) Property developer 7,574
Zapf Creation (D) Marketer of baby dolls 6,909
CEPSA (E) Oil refining & exploration 6,636
Obrascon Huarte Lain (E) Construction and infrastructure projects 6,624
Fortum (SF) Widely diversified energy concern 5,626
Eniro (S) Directory (Yellow pages) business 5,469
Riverdeep (IRL) Educational software provider 4,773
Folli Follie (GR) Jewellery retailer 4,690
Kaba (CH) Access controls and security systems 4,381
Pliva (Cr) Manufacturer of pharmaceuticals and fine chemicals 4,377
Telekom Austria (A) Former state-controlled telecom concern 3,774
Kone (SF) Leading elevator company 3,745
*21 Developpement (other) Private equity fund specialising in France 3,744
Van der Moolen (NL) A trader of securities and derivatives 3,608
Eiffage (F) Construction company with exposure to concessions 3,264
iTouch (IRL) Provider of information/services to mobile customers 3,250
Xstrata (CH) International resources group 3,245
*Doughty Hanson Fund III (other) Private equity fund 3,214
Aalberts Industries (NL) Industrial services and flow control systems 3,145
Swisslog (CH) Logistic solutions provider 2,967
Rocla (SF) Manufacturer of warehouse trucks 2,893
Fugro (NL) Leading onshore and offshore surveyor 2,811
Vinci (F) Construction company with exposure to concessions 2,795
Wegener (NL) Regional newspaper company 2,792
Vedior (NL) Temporary employment company 2,737
Buhrmann (NL) Leading distributor of office products to businesses 2,712
These investments total #148,572,000 or 69.6% of the portfolio.
(All classes of equity in any one company are treated as one investment.)
*Unquoted investments
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For further information please contact:
Stephen Peak
Director
TR European Growth Trust PLC
Telephone: 020 7818 4334
Stephen Westwood
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 5517
Stephen Phillips
Investor Relations Manager
Henderson Global Investors
Telephone: 020 7818 6417
Vicki Staveacre
Henderson Press Office
Telephone: 020 7818 4222
This information is provided by RNS
The company news service from the London Stock Exchange
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