ADF Facilities Regulatory News (ADF)

12 Jun 2006 17:44

Advance Focus Fund Ltd12 June 2006 ADVANCE FOCUS FUND LIMITED PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTSFOR THE SIX MONTHS TO 31 MARCH 2006 CHAIRMAN'S STATEMENT I am pleased to report positive performance of the portfolio over the six monthsended 31 March 2006. The net asset value increased from 111.3p per share at thestart of the period to 131.2p as at 31 March 2006. This represents an increaseof 17.9%, against an increase in the FTSE All-Share Total Return Index of 12.7%. The revenue return for the period was 1.0p per share. The directors do notintend to declare an interim dividend at this stage, but a final dividend willbe considered in the light of the results for the year. The period under review was a good one for the UK stockmarket, driven in recentmonths by corporate activity and the strength of resource related stocks inresponse to soaring commodity prices. The second half of the period saw strongperformance from certain holdings within the Company's portfolio. However, themarket has fallen back in recent weeks and this has inevitably had some impacton the value of the portfolio. The Company's net asset value per share as at 9June 2006 was 124.8p. Tightening liquidity has made the market sensitive to anyhints of less positive news, but the basic economic scenario still lookssatisfactory. The Manager has constructed a diverse portfolio of stocks, each facing itschallenges, but often dependent on company-specific factors, rather than generalbusiness trends, and all holdings have the potential for significant upside.Encouragingly, the Manager has recently been booking profits from somesituations which have already matured and the directors are confident that thisprogress will continue. Christopher Clark 12 June 2006 INCOME STATEMENT 6 months to 6 months to 6 months to 6 months to 6 months to 6 months to 31 March 31 March 31 March 31 March 31 March 31 March 2006 2006 2006 2005 2005 2005 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments Realised - 2,208 2,208 - 1,385 1,385Unrealised - 2,461 2,461 - 140 140 4,669 4,669 - 1,525 1,525 Capital losses on currency - - - - (70) (70)movements Income - from investments 505 - 505 - - - - bank interest 15 - 15 35 - 35 Investment management fees (147) - (147) - (110) (110)Performance fee - (173) (173) - (66) (66)Other expenses (118) - (118) (97) - (97) Return on ordinary 255 4,496 4,751 (62) 1,279 1,217activities Return per redeemable 1.00p 17.58p 18.58p (0.38)p 7.85p 7.47ppreference share The total column of this statement is the profit and loss account of the company. All capital and revenue items in the above statement derive from continuingoperations. No operations were acquired or discontinued during the period. A Statement of Total Recognised Gains and Losses is not required as all gainsand losses of the Company have been reflected in the above statement. SUMMARISED BALANCE SHEET At At At 31 March 31 March 30 September 2006 2005 2005 £'000 £'000 £'000 Fixed assets - Investments at market 31,986 8,458 28,683value Current assets 1,291 9,683 1,871Current liabilities (133) (35) (483) Net current assets 1,158 9,648 1,388 Performance fee provision (173) (66) - Total net assets 32,971 18,040 30,071 Share capital 252 163 269Capital redemption reserve 17 - -Share premium account 19,052 7,614 19,052Special purchase reserve 6,218 8,069 8,069Capital reserves 7,327 2,584 2,831Revenue reserve 105 (390) (150)Equity shareholders' funds 32,971 18,040 30,071 Net asset value per redeemablepreference share 131.16p 110.67p 111.97p Net asset value per redeemablepreference share on a portfolio bidprice valuation basis 131.16p 110.67p 111.27p No. of redeemable preference shares in 25,137,453 16,300,000 26,855,495issue RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS 6 months to 6 months to Year ended 31 March 31 March 30 Sept 2006 2005 2005 £'000 £'000 £'000 Profit for financial period/ year 4,751 1,217 1,703Placing of Company's own preference shares* - - 11,545Purchase of Company's own preference shares (1,851) - - 2,900 1,217 13,248 Opening shareholders' funds 30,071 16,823 16,823Closing shareholders' funds 32,971 18,040 30,071 * net of share issue expenses CASH FLOW STATEMENT 6 months to 6 months to 31 March 2006 31 March 2005 £'000 £'000 Operating ActivitiesCash inflow from investment income and bank interest 449 21Cash outflow from management expenses (277) (251) Cash inflow from exchange gains - 144Cash inflow from disposal of investments 8,412 9,363Cash outflow from purchase of investments (7,188) (1,437) Net Cash flow from Operating Activities 1,396 7,840 FinancingRepurchase of share capital (1,851) - Net cash flow from financing (1,851) - (Decrease) /Increase in Cash (455) 7,840 NOTES The Company is a closed-ended investment company incorporated and resident inGuernsey. Accounting policy These financial statements have been presented using UK GAAP. They have beenmodified since the last reporting period, as a result of changes to UKaccounting standards to harmonise with International Financial ReportingStandards (IFRS). Investments have been valued on a bid price basis with effectfrom the start of the Company's current financial year, commencing 1 October2005. As at 30 September 2005 securities were valued at their mid market prices.The difference between bid and mid price valuations as at 30 September 2005 was 0.65% of the portfolio. As at 31 March 2005 all investments held were open-endedfunds which were valued at NAV. Prior periods have not been restated. Return per redeemable preference share The return per redeemable preference share is based on the weighted average of25,577,012 redeemable preference shares (2005; 16,300,000 redeemable preferenceshares) in issue during the period. Purchase of own shares During October and November 2005 the company purchased 1,718,042 of its ownshares for cancellation at an aggregate cost of £1,851,000. Dividend The directors do not recommend an interim dividend. Performance Any bid price data for the comparative periods in this report is actual. Forstatistical data published from month to month at points occurring before 1January 2006, the Company uses a standard conversion ratio to convert mid pricevaluations to bid, in accordance with the recommendations of the Association ofInvestment Trust Companies. Performance Fee The manager is entitled to an annual performance fee of 10% of any outperformance over the Benchmark of the Company. The fee is conditional upon theNAV per share being greater than 111.79p and having increased since the end ofthe last period in which a performance fee was payable. The performance fee iscapped at 2.5% of the Company's net assets, at the point at which the feecalculation is made. Status of this report These financial statements are not the Company's statutory accounts. They areunaudited. The interim report will be sent to shareholders and copies will bemade available to the public at the registered office of the Company and at theaddress of the UK administration agent. The interim report was approved by the Board on 12 June 2006. SECRETARY AND ADMINISTRATOR Legis Corporate Services Limited 1 Le Marchant Street St. Peter Port Guernsey GY1 4HP UK ADMINISTRATION AGENT Cavendish Administration Limited Crusader House 145-157 St John Street London EC1V 4RU This information is provided by RNS The company news service from the London Stock Exchange