ALR.L Regulatory News (ALR)

8 Mar 2006 11:46

Allianz Dresdner Income Gwth IT PLC08 March 2006 For immediate release 8 March 2006 Allianz Dresdner Income Growth Investment Trust plc Announcement of Unaudited Interim ResultsFor the six months ended 31 December 2005 Highlights Assets As at As atNet asset value per share 31 December 2005 30 June 2005 Change (%)Ordinary Shares 76.1p 64.4p* +18.2Zero Dividend Preference Shares 173.2p 167.0p +3.7 Revenue Six months to Six months to Change (%) 31 December 2005 31 December 2004Dividends per Ordinary Share 3.90p 3.30p +18.2Earnings per Ordinary Share 3.09p 2.68p +15.3 *restated Second Quarterly Dividend The board has declared a second quarterly dividend of 1.95p net per OrdinaryShare, totalling £646,279. This payment gives a total for the first half of2005/6 of 3.90p net per share, some 18.2% greater than the equivalent paymentsin 2004/5. The second quarterly dividend is payable on 5 April 2006 to OrdinaryShareholders on the Register of Members at the close of business on 17 March2006. At 31 December 2005, the Trust's Revenue Reserve totalled £831,220 or 2.51p pershare. Investment Review In the first half of the current financial year the Trust's investments recordedgains of £5.8m, or 9.6%, to end the six months at £65.5m. This compares withthe 9.9% appreciation recorded by the FTSE 100 Index and the 7.9% recorded bythe FTSE 350 Higher Yield Index. The net asset value attributable to theTrust's ordinary shares rose by 18.2% to 76.1p, whilst the equivalent increasefor the Zero Dividend Preference shares was 3.7% to 173.2p per share. At thesame time the Trust's ordinary share price rose by 24% to 67.5p. Earnings perordinary share rose by 15.3% to 3.09p. The strength of the UK equity market in the first half of 2005 was sustained inthe second half, despite a sharp setback in October. As can be seen there hasbeen a useful rise in the Trust's assets and in the value of both classes ofshares. These trends have continued into the second half, supported bytake-over activity, strong corporate balance sheets and good company results.These factors would indicate that dividend receipts can continue in a positivevein over the first six months of 2006. Future of the Trust Plans are well advanced to provide shareholders with a range of options,including cash, at the wind up of the company at the end of June. Investment Manager From the end of May 2006 Nigel Lanning will be retiring from RCM and steppingdown as the principal fund manager for Allianz Dresdner Income Growth Trust. Hewill be replaced by Simon Gergel, who has previously managed UK equity incomefunds at Phillips & Drew and HSBC. By Order of the BoardK J SaltSecretary 155 BishopsgateLondon EC2M 3AD SUMMARY OF UNAUDITED RESULTS INCOME STATEMENT for the six months ended 31 December 2005 Revenue Capital Total Return £'000s £'000s £'000s (Note 2)Net gains on investments at fair value - 5,793 5,793Income from fixed asset investments 1,155 - 1,155Other income 27 - 27Investment management fee (51) (120) (171)Expenses of administration (108) (1) (109)Net return on ordinary activities before finance costs 1,023 5,672 6,695and taxationFinance costs : interest payable and similar charges - (1,495) (1,495)Return on ordinary activities before taxation 1,023 4,177 5,200Taxation - - -Return attributable to Ordinary Shareholders 1,023 4,177 5,200 Return per Ordinary Share (Note 1) 3.09p 12.60p 15.69p(basic and diluted) BALANCE SHEETas at 31 December 2005 £'000sInvestments at fair value 65,528Net Current Assets 1,274Zero Dividend Preference Shares Liability (41,572)Total Net Assets 25,230 Called up Share Capital 1,657Share Premium Account 30,550Capital Reserves:Realised (18,187)Unrealised 10,379Revenue Reserve 831Equity Shareholders' Funds 25,230 Net Asset Value per Ordinary Share 76.1pNet Asset Value per Zero Dividend Preference Share 173.2p The Net Asset Value is based on 33,142,522 Ordinary Shares and 23,999,757 Zero Dividend Preference Shares in issue(Note 2). SUMMARY OF UNAUDITED RESULTS INCOME STATEMENT for the six months ended 31 December 2004 Revenue Capital Total Return £'000s £'000s £'000s (Restated) (Restated) (Restated) (Note 2)Net gains on investments at fair value - 5,000 5,000Income from fixed asset investments 1,047 - 1,047Other income 15 - 15Investment management fee (48) (111) (159)Expenses of administration (125) - (125)Net return on ordinary activities before finance costs 889 4,889 5,778and taxationFinance costs : interest payable and similar charges - (1,415) (1,415)Return on ordinary activities before taxation 889 3,474 4,363Taxation - - -Return attributable to Ordinary Shareholders 889 3,474 4,363 Return per Ordinary Share (Note 1) 2.68p 10.48p 13.16p(basic and diluted) BALANCE SHEETas at 31 December 2004 (Restated) £'000sInvestments at fair value 57,174Net Current Assets 449Zero Dividend Preference Shares Liability (38,661)Total Net Assets 18,962 Called up Share Capital 1,657Share Premium Account 30,550Capital Reserves:Realised (17,731)Unrealised 3,611Revenue Reserve 875Equity Shareholders' Funds 18,962 Net Asset Value per Ordinary Share 57.2pNet Asset Value per Zero Dividend Preference Share 161.1p The Net Asset Value is based on 33,142,522 Ordinary Shares and 23,999,757 Zero Dividend Preference Shares in issue(Note 2). SUMMARY OF RESULTS INCOME STATEMENTFor the year to 30 June 2005 Revenue Capital Total Return (restated) (restated) (restated) £'000s £'000s £'000s (Note 2)Net gains on investments at fair 8,736 8,736valueIncome from fixed asset investments 2,516 - 2,516Other income 28 - 28Investment management fee (100) (234) (334)Expenses of administration (234) (4) (238)Net return on ordinary activities 2,210 8,498 10,708before finance costs and taxationFinance costs : interest payable and - (2,831) (2,831)similar chargesReturn on ordinary activities before 2,210 5,667 7,877taxationTaxation - - -Return attributable to Ordinary 2,210 5,667 7,877Shareholders Return per Ordinary Share (Note 1) 6.67p 17.10p 23.77p(basic and diluted) BALANCE SHEETas at 30 June 2005 (restated) £'000sInvestments at fair value 60,302Net Current Assets 1,124Zero Dividends Preference Shares Liability (40,076)Total Net Assets 21,350 Called up Share Capital 1,657Share Premium Account 30,550Capital Reserves:Realised (18,070)Unrealised 6,144Revenue Reserve 1,069Equity Shareholders' Funds 21,350 Net asset value per Ordinary Share 64.4pNet asset value per Zero Dividend Preference Share 167.0p The net asset value is based on 33,142,522 Ordinary Shares and 23,999,757 Zero Dividend Preference Shares in issue(Note 2). RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS For the year ended 31 December 2005 (£000s) (£000s) (£000s) (£000s) (£000s) (£000s) (£000s) Called up Share Preference Capital Capital Revenue Total Share Premium Share Realised Unrealised Reserve Capital Account Capital Reserve Reserve Net Assets at 30 June 2005as previously published 1,657 48,550 6,000 (1,994) 6,144 456 60,813 Reclassification of ZeroDividend Preference Sharesas a long term creditor - (18,000) (6,000) (16,076) - - (40,076) Dividends on OrdinaryShares not recognised as acurrent liability - - - - - 613 613 Net Assets at 30 June2005 (restated) 1,657 30,550 - (18,070) 6,144 1,069 21,350 Adjustment to record - - - - (59) - (59)investments at bid value Revenue Return - - - - - 1,023 1,023 Dividends on Ordinary - - - - - (1,261) (1,261)Shares Capital Return - - - (117) 4,294 - 4,177 Net Assets at 31 December 1,657 30,550 - (18,187) 10,379 831 25,2302005 Net Assets at 30 June 2004as previously published 1,657 48,550 6,000 (2,787) (1,560) 533 52,393 Reclassification of ZeroDividend Preference Sharesas a long term creditor - (18,000) (6,000) (13,247) - - (37,247) Dividends on OrdinaryShares not recognised as acurrent liability - - - - - 504 504 Net Assets at 30 June 2004 1,657 30,550 - (16,034) (1,560) 1,037 15,650(restated) Revenue Return - - - - - 889 889 Dividends on Ordinary - - - - - (1,051) (1,051)Shares Capital Return - - - (1,697) 5,171 - 3,474 Net Assets at 31 December2004* 1,657 30,550 - (17,731) 3,611 875 18,962 (£000s) (£000s) (£000s) (£000s) (£000s) (£000s) (£000s) Called up Share Preference Capital Capital Revenue Total Share Premium Share Realised Unrealised Reserve Capital Account Capital Reserve Reserve Net Assets at 30 June 2004as previously published 1,657 48,550 6,000 (2,787) (1,560) 533 52,393 Reclassification of ZeroDividend Preference Sharesas a long term creditor - (18,000) (6,000) (13,247) - - (37,247) Dividends on OrdinaryShares not recognised as acurrent liability - - - - - 504 504 Net Assets at 30 June 2004 1,657 30,550 - (16,034) (1,560) 1,037 15,650(restated) Revenue Return - - - - - 2,210 2,210 Dividends on Ordinary - - - - - (2,178) (2,178)Shares Capital Return - - - (2,036) 7,704 - 5,668 Net Assets at 30 June 2005 1,657 30,550 - (18,070) 6,144 1,069 21,350* *Figures are restated CASH FLOW STATEMENT for the six months ended 31 December 2005 and comparative periods Six months Six months Year to ended 31 ended 31 ended 30 December December June 2005 2004 2005 £'000s £'000s £'000s Net cash inflow from operating activities 983 1,006 1,969 Servicing of FinanceInterest paid - - - Investing ActivitiesPayments to acquire fixed asset investments (6,360) (8,112) (13,891)Proceeds on disposal of fixed asset investments 6,870 8,399 14,950 Net cash inflow from investing activities 510 287 1,059 Equity dividends paid (1,261) (1,051) (2,177) Increase in cash 232 242 851 ALLIANZ DRESDNER INCOME GROWTH INVESTMENT TRUST plc Twenty Largest Equity Holdings as at 31 December 2005 Valuation % of Principal £'000s Total Assets * Activities BP 5,418 8.11 Oil & GasRoyal Dutch Shell 'B' shares 4,922 7.37 Oil & GasHSBC 4,897 7.33 BankingGlaxoSmithKline 3,818 5.72 PharmaceuticalsRoyal Bank of Scotland 2,632 3.94 BankingHBOS 2,481 3.71 BankingLloyds TSB 2,392 3.58 BankingBT 1,961 2.94 Telecommunication ServicesBarclays 1,954 2.93 BankingRio Tinto 1,592 2.38 MiningAnglo American 1,582 2.37 MiningVodafone 1,473 2.21 Telecommunication ServicesLand Securities 1,411 2.11 Real EstateSlough Estates 1,284 1.92 Real EstateScottish Power 1,251 1.87 ElectricityBritish American Tobacco 1,237 1.85 TobaccoLonmin 1,127 1.69 MiningScottish & Southern Energy 1,065 1.59 ElectricityNational Grid 1,024 1.53 Other UtilitiesAlliance & Leicester 992 1.49 Banking 44,513 66.64 * Total Assets are stated net of current liabilities Note 1 The Returns per Ordinary Share attributable to each period are as follows: Six Months to Six months to Year to 31 December 31 December 30 June 2005 2004 2005 £'000s £'000s £'000sRevenue 3.09p 2.68p 6.67pCapital 12.60p 10.48p 17.10pTotal 15.69p 13.16p 23.77p The Returns per Ordinary Share are based on 33,142,522 Ordinary Shares in issue. Note 2 The total column of this statement is the profit and loss account of theCompany. All revenue and capital items derive from continuing operations. No operationswere acquired or discontinued in the period. A Statement of Recognised Gains and Losses is not required as all gains andlosses of the Company have been reflected in the Income Statement. Note 3 The interim statements have been prepared using the following changes inaccounting policies. Restatement of prior year results are explained in notes 5and 6. FRS 21: 'Events after the Balance Sheet date' requires that final dividends arerecognised as a liability when approved by shareholders. Interim dividends arerecognised only when paid. FRS 25: 'Financial Instruments: Presentation and Disclosure' requires thereclassification of the Company's Zero Dividend Preference Shares as a financialliability rather than as share capital (non-equity interests in the balancesheet). FRS 26: 'Financial Instruments: Measurement' requires that fixed assetinvestments held for trading are measured at their fair value which is deemed tobe the bid value of those investments held at the close of business on theaccounting date. Previous policy measured fixed asset investments at theirmid-market value. The Company however has taken advantage of paragraph 108D ofFRS 26, which allows exemption from restating the previous periods' fixed assetinvestments to bid values. Note 7 discloses the effect of such a restatement.Also, in accordance with FRS 26, transaction costs relating to the purchase andsale of investments are stated separately in the Income Statement. Note 4 Dividends payable on Ordinary Shares in respect of earnings for each period areas follows: Six months to 31 Six months to 31 Year to December 2005 December 2004 30 June 2005 £'000s £'000s £'000sFirst interim 1.95p 646 1.65p 547 1.65p 547Second interim 1.95p* 646 1.65p* 547 1.65p 547Third interim - - 1.75p 580Final - - 1.85p* 613 3.90p 1,292 3.30p 1,094 6.90p 2,287 * These dividends are not recognised as a liability under FRS 21 (see Note 3). Note 5 Restatement of opening balances As previously stated 31 Adjustment Restated December 31 December 2004 2004 £'000s £'000s £'000sFixed Assets Investments 57,174 - 57,174Net Current Assets (98) 547 1 449 57,076 547 57,623Less: Creditors - amounts falling dueafter more than one year - (38,661) 2 (38,661)Total Net Assets 57,076 (38,114) 18,962 Capital and ReservesCalled up Share Capital: - Ordinary 1,657 - 1,657 - Preference 6,000 (6,000) 2 -Share Premium Account 48,550 (18,000) 2 30,550Capital Reserves: - Realised (3,070) (14,661) 2 (17,731) - Unrealised 3,611 - 3,611Revenue Reserve 328 547 2 875Shareholders' Funds 57,076 (38,114) 18,962 Net asset value per Ordinary Share 55.6p 1.6p 57.2pNet asset value per Zero Dividend 161.6p 161.1pPreference Share As previously stated 30 Adjustment Restated June 30 June 2005 2005 £'000s £'000s £'000sFixed Assets Investments 60,302 - 60,302Net Current Assets 511 613 1 1,124Zero Dividend Preference SharesLiability - (40,076) 2 (40,076)Total Net Assets 60,813 (39,463) 21,350 Capital and ReservesCalled up Share Capital: - Ordinary 1,657 - 1,657 - Preference 6,000 (6,000) 2 -Share Premium Account 48,550 (18,000) 2 30,550Capital Reserves: - Realised (1,994) (16,076) 2 (18,070) - Unrealised 6,144 - 6,144Revenue Reserve 456 613 2 1,069Shareholders' Funds 60,813 (39,463) 21,350 Net asset value per Ordinary Share 62.6p 64.4pNet asset value per Zero Dividend 167.0p 167.0pPreference Share 1 Represents the effect of not recognising the interim and final dividends (FRS 21). 2 Represents the effect of recognising the Zero Dividend Preference Shares as a liability and not as a non-equity shareholder funds (FRS 25). Note 6 FRS 26 requires that the fixed asset investments be measured at their fair valuewhich is deemed to be the bid price. Had the Company not elected to takeadvantage of the exemption under paragraph 108D of FRS 26, the effect ofrevaluing the fixed asset investments at 30 June 2005 from mid to bid would beto lower the value of the investments by £58,878 to £60,243,389 and subsequentlyreduce the total net assets of the Company by the same amount. Note 7 The interim statement has neither been audited nor reviewed by the Company'sauditors. The financial information for the year ended 30 June 2005 has beenextracted from the statutory accounts for that year which have been delivered tothe Registrar of Companies and restated by reference to the changes inaccounting policy detailed above. The auditor's report on those accounts wasunqualified and did not contain a statement under either Section 237 (2) orSection 237 (3) of the Companies Act 1985. The Interim Report will be sent to Shareholders shortly and made available tothe public at the Registered Office of the Company, 155 Bishopsgate, London,EC2M 3AD. For further information, please contact: RCM (UK) LtdSimon White, Head of Investment TrustsTel: 020 7065 1539 or RCM (UK) LtdNigel Lanning, Fund ManagerTel: 020 7065 1474 This information is provided by RNS The company news service from the London Stock Exchange