ELTA.L Regulatory News (ELTA)

20 Nov 2007 07:01

Electra Private Equity PLC20 November 2007 TUESDAY 20 NOVEMBER 2007 ELECTRA PRIVATE EQUITY PLC Unaudited Preliminary Results for Year ended 30 September 2007 • Strong net asset value growth - up 29.5% over the year to 2,001p per share at 30 September 2007 - Unaudited net asset value per share at 31 October 2007 of 2,008p • Share price outperformance relative to FTSE All-Share Index - Electra rose by 22.5% versus an Index increase of 8.7% over the year. Share price up 263.2% over five years versus an Index increase of 84.1% • Return on equity of 22.6% on an annualised basis for the five years to 30 September 2007 • Busy year of investment activity - £322 million invested and £303 million realised • Net liquid resources at 30 September 2007 of £156m • Special Dividend of 25p per share reflecting high level of distributable revenue Commenting on the Results, Sir Brian Williamson, Chairman, said: "The year has seen a positive start to Electra's return to full investment andElectra Partners has delivered a strong performance. Recent concerns about theeconomic outlook and availability of bank finance may reduce the level ofrealisations in the short term but will generate opportunities for those such asElectra with capital to invest." For further information: Sir Brian Williamson, Chairman, Electra Private Equity PLC 020 7306 3883Hugh Mumford, Managing Partner, Electra Partners LLP 020 7214 4200Nick Miles, M: Communications Limited 020 7153 1535 Net Asset Value Per Share 30 September 30 September 31 October 2007 ----------------------- 2007 2006 ----------- ----------- -----------Net asset value pershare 2,001p 1,545p 2,008pIncrease since 30September 2006 29.5%Increase in FTSEAll-Share Indexsince 8.7%30 September 2006 The unaudited net asset value per share at 31 October 2007 was calculated on thebasis of the net asset value at 30 September 2007 adjusted to reflect thepurchases and sales of investments, currency movements and bid values on thatday in respect of listed investments. A copy of the Chairman's Statement, Manager's Review and the PreliminaryAnnouncement are attached. The figures and financial information for the year ended 30 September 2007 donot constitute the statutory financial statements for that year. Those financialstatements have not yet been delivered to the Registrar, nor have the Auditorsyet reported on them. The figures and financial information for the year ended30 September 2006 do not constitute the statutory financial statements for thatyear. The financial statements in respect of the year ended 30 September 2006have been delivered to the Registrar and included the Auditors' Report which wasunqualified and did not contain a statement under either section 237(2) orsection 237(3) of the Companies Act 1985. The Report and Accounts will be sent to shareholders in January 2008 and willthereafter be available from the Company's registered office at PaternosterHouse, 65 St Paul's Churchyard, London EC4M 8AB. The Annual General Meeting willbe held on Wednesday 6 February 2008 at the Barber-Surgeons' Hall, MonkwellSquare, London EC2 at 12 Noon. CHAIRMAN'S STATEMENT Overview Electra's return to full investment in October 2006 was followed by a busyperiod of investment activity, both in terms of successful realisation ofportfolio companies and through new investments. Successful realisations duringthe year have resulted in Electra's net liquid resources at the year endamounting to £156 million despite investments this year totalling£322 million. These resources, together with unutilised borrowing facilities,will enable Electra to make new investments in a time when a troubled financialmarket may require a greater equity capital commitment. Results Over the last year Electra once again delivered both strong net asset valuegrowth and good share price performance. This continued the success of theprevious four years. The net asset value per share increased by 29.5% from1,545p to 2,001p. Together with the Special Dividend of 17p per share paid inMarch 2007, this represents a total return of 30.6% for the year. Over the sameperiod the share price increased by 22.5% while the FTSE All-Share Indexincreased by 8.7%. Over the five years to 30 September 2007 Electra's net assetvalue per share, inclusive of the two dividends paid in 2006 and 2007, increasedby 166.9% and Electra achieved a return on equity of 22.6% on an annualisedbasis. Over the same period the share price rose by 263.2% and the FTSEAll-Share Index increased by 84.1%. These are excellent results. Investment Activity Since October 2006, Electra Partners, the Company's Manager, has quicklydeveloped a strong dealflow which has resulted in the completion of a number ofnew investments during the year. In certain cases these investments werestructured to give greater downside protection through an emphasis on debt likeinstruments. For much of the year readily available bank finance greatlyassisted realisations on attractive terms before the sub-prime crisis in theUnited States led to banks adopting a more cautious approach. £322 million was invested during the year and £303 million was realised fromportfolio investments. Full details of the investment activity are set out inthe Investment Manager's Review from Electra Partners. Investment Strategy Under new FSA listing rules Electra, like other closed-ended investment funds,is required to include in the annual financial report details of its investmentpolicy and give additional information relating to its portfolio. Electra'sshareholders approved the new investment strategy at the Extraordinary GeneralMeeting held in October 2006 and details of Electra's objectives and investmentpolicy are set out elsewhere in this Announcement. Other information will begiven under the new rules in relation to the continued appointment of ElectraPartners and the principal terms of its compensation arrangements. The Board and Committees of the Board Colette Bowe and Lucinda Webber joined the Board with effect from 1 March 2007and the Board is already benefiting from their wide and varied experience. Lord King of Bridgwater and Professor Sir George Bain will be retiring from theBoard at the Annual General Meeting to be held on Wednesday 6 February 2008.They have been stoutly independent throughout their 25 combined years and theirwisdom has been incalculable in steering the Company through its development.They can reflect with pleasure on their contribution to the excellent results ofrecent years. With the exception of Michael Walton, all other Directors will retire and offerthemselves for re-election at the Annual General Meeting. With the return to full investment the Board has established a ValuationsCommittee whose purpose is to consider the portfolio valuations of ElectraPartners. The Committee will add a further level of oversight to the valuationprocess carried out by Electra Partners under its contractual arrangements withElectra. Colette Bowe and Lucinda Webber will join this Committee which ischaired by Michael Walton. Further Authority to Buy Back Shares During the year ended 30 September 2007, Electra made on-market purchases at acost of £22 million and cancelled 1.47 million shares. The Company currently has the ability to buy back and cancel up to a further 5.4 million shares during theremaining period of this authority which will cease at the Annual GeneralMeeting when Directors will seek to renew this general authority. Special Dividend In the year ended 30 September 2007 Electra again received distributable revenueat a level which requires it as an investment trust to pay a dividend.Accordingly the Board is proposing a special dividend of 25p per share whichwill be paid on 7 March 2008 to shareholders on the Register of Members at theclose of business on 25 January 2008 subject to approval by shareholders at theforthcoming Annual General Meeting. This is the third year in which a dividendhas been proposed for this reason. Shareholders should note that this is not avariation in the policy of maximising capital growth. The Board would not expectdividend payments to continue on a regular basis. Articles of Association Following a review of Electra's Articles of Association, the Board has decidedto seek shareholders' approval to changes to Electra's Articles of Associationin the light of certain provisions of the Companies Act 2006, dealing withelectronic communications and Directors' conflicts of interest. It is alsotaking the opportunity to increase the limit on Directors' ordinary remunerationwhich was last agreed in 1997. The Articles of Association will be reviewed again after the remainingprovisions of the Companies Act have come into effect. Outlook The year has seen a positive start to Electra's return to full investment andElectra Partners has delivered a strong performance. Recent concerns about theeconomic outlook and availability of bank finance may reduce the level ofrealisations in the short term but will generate opportunities for those such asElectra with capital to invest. Sir Brian WilliamsonChairman OBJECTIVE & INVESTMENT POLICY At the Extraordinary General Meeting held in October 2006 shareholders approvedElectra's revised investment strategy and policy which is set out below. The business and affairs of Electra are managed on an exclusive and fullydiscretionary basis by Electra Partners LLP, an independent private equity fundmanager, whose senior management team has worked together since 1992. Electra ismanaged as an HM Revenue and Customs approved investment trust. Electra's objective is to target a rate of return on equity of between 10 - 15%per annum over the long-term by investing in a portfolio of private equityassets. Unless required to do so as an investment trust, Electra's Directorswould not propose to recommend the payment of dividends on a regular basis. Electra Partners, on behalf of Electra, will aim to achieve this target rate ofreturn by: • Exploiting a track record of successful private equity investment; • Utilising the proven skills of its senior management team with a strong recordof dealflow generation and long-term presence in the private equity market; • Investing in a number of value creating transactions with a balanced riskprofile across a broad range of investment sectors through a variety offinancial instruments; • Actively managing its total capital position and levels of gearing in light ofprevailing economic conditions. Total bank borrowings by Electra will always beless than 2.5 times its total assets. Additionally, an on-market share buyback programme will be managed to generateshareholder value. Electra Partners will target private equity opportunities (including directinvestment, fund investment and secondary buyouts of portfolios and funds) sothat the perceived risks associated with such investments are justified byexpected returns. These investments will be made across a broad range of sectorsand types of financial instrument such as equity, senior equity, convertiblesand mezzanine debt. The investment focus will be principally on Western Europe, with the majority ofinvestments expected to be made in the United Kingdom, where historicallyElectra Partners has made the majority of investments. Electra Partners wouldexpect there to be an emphasis on areas where its senior management team hasspecific knowledge and expertise. In circumstances where Electra Partners feelthat there is merit in gaining exposure to countries and sectors outside ElectraPartners' network and expertise, consideration will be given to investing inspecific funds managed by third parties or co-investing with private equitymanagers with whom it has developed a relationship. In implementing Electra's investment strategy, Electra Partners typicallytargets investments at a cost of £25-70 million in companies with an enterprisevalue of £70-200 million. THE PORTFOLIO Electra's portfolio consists of an investment portfolio together with net liquidresources. Net liquid resources comprise cash and floating rate notes less bankloans. The portfolio consists of direct investments and investments throughthird party private equity funds. An overall analysis is given below:- --------------------- ------------ ------------ As at 30 September 2007 2006 £m £m --------------------- ------------ ------------Portfolio *Direct Investments 525 315Funds 95 65--------------------- ------------ ------------ 620 380Net Liquid Resources 156 238--------------------- ------------ ------------Portfolio and Net Liquid Resources 776 618--------------------- ------------ ------------ * These amounts at 30 September 2007 exclude accrued income of £13,419,000(2006: £5,874,000). At 30 September 2007 Electra had direct investments in 60 companies with anaggregate value of £525 million and investments in 35 private equity funds withan aggregate value of £95 million. Of the direct investments those with anaggregate value of £76 million were quoted on a recognised stock exchange butwere subject to restrictions on sale. The top ten and twenty direct investmentsaccounted for 61% and 84% respectively, of the total direct investments. Geographically, 78% of the investment portfolio was situated in the UK orContinental Europe, 14% was based in the USA and 8% in Asia. INVESTMENT MANAGER'S REVIEW Investment Portfolio Analysis The year to 30 September 2007 proved to be another period of excellent progressfor Electra. The net asset value per share increased from 1,545p to 2,001p, arise of 29.5% following rises of 29% and 31% in the previous two years.Importantly, with all restrictions on new investment removed for the first timesince 1999 the Company entered a new era. Electra was able to quicklyre-establish its presence in the private equity market, a fact demonstratedclearly by the rate of new investment which increased by 145% over the previousyear. The year was characterised by two distinct phases. Until July the market wasstrongly influenced by the aggressive lending of financial institutions to theprivate equity sector. This resulted among other things, in high values beingachieved on the realisation of investments. Post July the problems created bythe sub-prime debt crisis led to a substantial change in the lending market withthe onset of much greater caution. Electra was able to take advantage of theseconditions achieving a level of realisation which amounted to 80% of the valueof the portfolio at the beginning of the year. These disposals in turn gave riseto a very high level of realised gains. New investments on the other hand wereachieved at good value by adopting a cautious and selective approach, byinvesting in smaller companies where competition was lower and by focusing onoff market transactions. A summary of the changes in the portfolio compared to the previous two years isshown in the table below. ------------------ ------------ ------------ ------------ Year ended 30 September 2007 2006 2005 £m £m £m ------------------ ------------ ------------ ------------Opening valuation 380 353 413Investments 322 131 82Realisations (303) (257) (250)Net capital increase 221 153 108Closing portfolio * 620 380 353------------------ ------------ ------------ ------------ * These amounts at 30 September 2007 exclude accrued income of £13,419,000(2006: £5,874,000, 2005: £17,024,000). Over the year, additions to the portfolio amounted to £322 million compared to£131 million in the previous year. Realisations were also very substantialgiving rise to £303 million of cash proceeds. Net capital increases recorded inthe year amounted to £221 million of which the majority arose from realisations.As a result of the investment activity in the year, Electra's invested portfoliorose by 63% from £380 million to £620 million. At the end of the year, net liquid resources stood at £156 million compared to£238 million at the beginning of the period. Despite the rise in the portfolio,Electra thus remains with substantial liquid assets available for further newinvestment. Outlook The last two years have produced exceptional returns for Electra's shareholdersdriven by a high level of well priced realisations. With the change in marketconditions occurring in the latter half of the year it is likely that theholding period of investments may be longer and refinancings may be moredifficult. Returns may therefore fall to a lower level. It is worth noting,however, that Electra operates in a segment of the market where the financing ofpotential targets and sale of investments has been least affected by marketchanges. Electra, therefore, remains in a good position. The portfolio has beensignificantly increased based on carefully selected transactions, withsubstantial upside potential. Furthermore, Electra has retained a high level ofliquid assets with which to take advantage of investment opportunities which mayarise on more favourable terms given the current market turmoil. INVESTMENT MANAGER'S REVIEW Investments In the year to 30 September 2007, Electra invested £322 million in additions tothe investment portfolio. This compares to investments of £131 million made inthe previous year. This very significant step up in activity resulted from theremoval of restrictions on investment which were in place up to October 2006.With an unrestricted investment strategy, Electra has been able to re-enter theprivate equity market in a fully committed way. This in turn produced asignificant increase in dealflow and subsequent investment. In looking at newinvestments, Electra adopted a relatively cautious approach in view of thecompetitive nature of the market and the plentiful supply of bank funds whichled to escalating prices in the first nine months of the financial year. The investment of £322 million made by Electra included £265 million in directinvestments and £56 million drawn down under commitments to private equityfunds. The most significant direct investments included £63 million in the £246million buyout of Kingfield Heath, £34 million in the £73 million buyout ofNuaire, £26 million in the £83 million buyout of Lil-lets and £33 million in thebuyout of Premier Asset Management. Kingfield Heath is the second largest office products distributor in the UK andIreland, offering the widest range of office products and electronic officesupplies available in the market place. Nuaire is one of the UK's largestventilation product manufacturers and has been designing and manufacturinginnovative quality products for home and overseas markets since 1963. Lil-letssells a range of feminine hygiene products both in the UK and South Africanmarkets where it is a clear market leader. Premier Asset Management is a retailfund manager, distributing fund of funds and specialist open and closed-endedfunds predominantly through IFAs but also through other discretionary andadvisory channels. ------------------- -------------- ---------- ----------Company Activity Deal Type Cost (£m) ------------------- -------------- ---------- ----------New InvestmentKingfield Heath Office products MBO 63Nuaire Ventilation systems MBO 34Lil-lets Feminine hygiene MBO 26Premier Asset Management Fund management MBO 33ReinvestmentAllflex Animal tagging MBO 41Capital Safety Group Safety harnesses MBO 18Funds MBO investments - 56Other Investments Various - 51------------------- -------------- ---------- ---------- 322 ------------------- -------------- ---------- ---------- In addition to these new investments Electra reinvested in the secondary buyoutof Capital Safety Group ("CSG") and in the refinancing of Allflex. Electra invested £18 million in CSG's successor vehicle in order to participatefurther in the growth of the company. In August 2007 Electra reinvested £41million in the third refinancing of Allflex for a 38% equity interest. Allflexis the world's leading manufacturer and distributor of visual and electronicanimal identification tags and operates in a market with continued growthopportunities. Electra has continued its strategy of investing in third party private equityfunds where, in the view of the Manager, the relationship created is likely togive rise to significant co-investment or co-underwriting opportunities. Duringthe year, £56 million was invested in private equity funds of which £25 millionwas invested in funds managed by TCR, a private equity management company basedin France. Of this amount, £20 million represented the purchase of a secondaryinterest and a further £5 million was drawn down under outstanding commitments.The remaining £31 million was invested primarily in five other private equity funds. In addition to the amounts invested during the year, Electra had outstandingcommitments of £128 million to make further investments in private equity. Ofthis amount, £78 million represented commitments to third party private equityfunds. Realisations The total proceeds realised from the portfolio during the year amounted to £303million. This compares to a valuation of the portfolio at the beginning of theyear of £380 million. The total proceeds thus represented 80% of the openingvalue of the investment portfolio. This high level of realisations reflectedmarket conditions up to the end of July when the sub-prime debt crisis broughtwith it a rapid change. Where investments were realised overall proceedsexceeded their value at the beginning of the year by more than 2.5 times. Largest Investment Realisations --------------- ------------------- ---------------Company Valuation at 30 Proceeds from September 2006 Disposal £'m £'m --------------- ------------------- ---------------Capital Safety GroupII 24 113Allflex 31 97--------------- ------------------- --------------- 55 210 --------------- ------------------- --------------- The two largest realisations related to CSG and Allflex. In the case of CSG, thecompany was sold in a $565 million secondary buyout arranged by CandoverPartners. On completion of the transaction, Electra received gross proceeds of£113 million compared to a value at the beginning of the year of £24 million.Electra originally purchased CSG in 1998 investing£30 million in the £98 million management buyout. Including the proceeds fromthe refinancing in 2005, Electra achieved a multiple of over five times itsoriginal investment with a net IRR to Electra over nine years of 23%. In August 2007 Allflex was refinanced for the third time generating grossproceeds to Electra of £97 million compared to a value at the beginning of theyear of £31 million. This refinancing was achieved despite the difficultconditions in the debt market which is a reflection of the strength of Allflex'sbusiness. Allflex was also purchased in 1998. Based on the aggregate proceedssince then and the retained investment, Electra has achieved a multiple of overfive times the original investment with a net IRR to Electra over nine years of25%. Both Allflex and CSG have developed very successfully during the period oftime they have been backed by Electra. These investments demonstrate one of thestrengths of Electra, namely that the flexible nature of its investment policyallows lengthy holding periods, enabling full benefit to be gained from longterm strategy without the need to sell on a pre-determined timescale. Electra received almost £100 million from the sale of other investmentsincluding £17 million from Freightliner and £12 million from Safeland. Over theyear the proceeds from private equity funds amounted to £49 million. Shortly after the year end Electra realised its investment in Dakota, Minnesota& Eastern Railroad ("DM&E") for £35 million with further contingentconsideration of £33 million at current exchange rates. These payments arecontingent upon the future success of the Powder River Basin project and novalue has been recognised in respect of these potential payments due to theuncertainty at this stage. This represents an excellent conclusion to aninvestment made 21 years ago when Electra originally invested $800,000 with afurther investment of $1.4 million. Performance The year to 30 September 2007 was one in which the portfolio produced anexceptional performance. Net capital appreciation recognised during the yearamounted to£221 million, with the result that the investment portfolio rose by 58.2%. Thiscompares to 43.3% and 26.2% in the two previous years. Once again, the performance resulted for the most part, from realised gains asopposed to unrealised appreciation. Inclusive of the sale of DM&E completedshortly after the year end, realised gains exceeded £200 million. The change inunrealised appreciation over the year was insignificant and amounted to a netdecrease of £10 million made up of fair valuation increases of £20 millionoffset by £30 million of decreases. The largest realised gains were made on the sale of CSG (£88 million) andAllflex(£66 million) whereas the gain of £33 million on the sale of DM&E was realisedin October. Private equity funds contributed £21 million of gains. Largest Valuation Changes ---------------------- ------------- ----------- --------Company Valuation at Valuation % movement 30 September £'m ---------------------- 2006 £'m ----------- -------- -------------Capital Safety Group II 24 88 366Allflex 31 66 212Dakota, Minnesota & Eastern Railroad 3 33 1,289Private Equity Funds 67 21 32Moser Baer 15 13 92---------------------- ------------- ----------- -------- 140 221 ---------------------- ------------- ----------- -------- Only two investments were written up during the year, namely Moser Baer andFreightliner. Moser Baer performed strongly during the year and the valuationwas increased by £13 million to reflect this. Freightliner also continues tomake good progress and was revalued by £8 million. Reductions in valuation weremade in respect of 13 investments. Unaudited Consolidated Income Statement --------------------- ------- ------- ------- ------- ------ ------For the yearended 30September Revenue Capital 2007 Revenue Capital 2006 £'000 £'000 Total £'000 £'000 Total £'000 £'000 --------------------- ------- ------- ------- ------- ------ ------ Net gains oninvestments heldat fair value 34,420 170,083 204,503 33,484 143,579 177,063--------------------- ------- ------- ------- ------- ------ ------Profits/(losses)on revaluationof foreigncurrencies 7,637 - 6,122 6,122 - 7,637 --------------------- ------- ------- ------- ------- ------ ------ 34,420 177,720 212,140 33,484 149,701 183,185Other income 2,394 - 2,394 2,437 - 2,437Priority profitshare paid togeneral partners (12,350) - (12,350) (10,681) - (10,681)Other expenses (2,702) (5,538) (8,240) (3,539) (645) (4,184)--------------------- ------- ------- ------- ------- ------ ------Net Profit beforeFinance Costs andTaxation 21,762 172,182 193,944 21,701 149,056 170,757Finance costs (8,859) - (8,859) (8,799) - (8,799)Profit on OrdinaryActivities beforeTaxation 12,903 172,182 185,085 12,902 149,056 161,958Taxation (3,624) (7,132) (10,756) (4,286) (7,208) (11,494)--------------------- ------- ------- ------- ------- ------ ------Profit afterTaxation 9,279 165,050 174,329 8,616 141,848 150,464--------------------- ------- ------- ------- ------- ------ ------Attributable toEquityShareholders 9,279 165,050 174,329 8,616 141,848 150,464--------------------- ------- ------- ------- ------- ------ ------Basic and DilutedEarnings per OrdinaryShare 24.60p 437.49p 462.09p 20.58p 338.80p 359.38p --------------------- ------- ------- ------- ------- ------ ------ The Total column of this statement represents the Group's Income Statementprepared in accordance with International Financial Reporting Standards adoptedby the EU ("IFRS"). The supplementary Revenue and Capital columns are bothprepared under guidance published by the Association of Investment Companies. The amounts dealt with in the Consolidated Income Statement are all derived fromcontinuing activities. 2007 2006 Number of Ordinary Shares in issue at 30 September 37,252,687 38,722,687 Dividends Paid 2007 2006Total paid (£'000) 6,375 8,592Per share 17p 20p--------------------- ------- ------- ------- ------- ------ ------ Unaudited Consolidated Statement of Changes in Equity ---------------------------- ------------ ------------For the year ended 30 September 2007 2006 £'000 £'000 ---------------------------- ------------ ------------Total equity at 1 October 598,292 520,883Adoption of IAS 39 * - 1,239Profit after Taxation 174,329 150,464Special dividend to equity shareholders ** (6,375) (8,592)Exchange differences 1,564 (1,445)Purchase of own shares (22,304) (64,257)---------------------------- ------------ ------------Total Equity Shareholders' Funds at 30 September 745,506 598,292---------------------------- ------------ ------------ * Opening balance at 1 October 2005 has been restated for IAS 39 such thatlisted investments have been valued at bid rather than mid price andmarketability discounts have not been applied. ** Special dividend paid of 17p (2006: 20p) per share after share buy-back of1,000,000 ordinary shares on 18 December 2006, 120,000 ordinary shares on 19December 2006 and 100,000 ordinary shares on 15 January 2007 (2006: 550,000ordinary shares on 6 February 2006). Unaudited Consolidated Balance Sheet As at 30 Sept 2007 As at 30 Sept 2006 £'000 £'000 £'000 £'000 -------------------------- -------- ------- ------- -------Non-Current AssetsInvestments held at fair value:Unlisted and listed 633,311 386,033Floating rate notes 299,437 394,201-------------------------- -------- ------- ------- ------- 932,748 780,234 -------------------------- -------- ------- ------- -------Current AssetsTrade and other receivables 16,189 1,481Cash and cash equivalents 16,948 9,875-------------------------- -------- ------- ------- ------- 33,137 11,356 -------------------------- -------- ------- ------- -------Current LiabilitiesTrade and other payables 19,584 15,591-------------------------- -------- ------- ------- -------Net Current Assets/(Liabilities) 13,553 (4,235)-------------------------- -------- ------- ------- -------Total Assets less Current Liabilities 946,301 775,999-------------------------- -------- ------- ------- -------Bank loans 160,699 165,823 -------------------------- -------- ------- ------- ------- 785,602 610,176Deferred tax 12,701 1,299Provision for liabilities and charges 27,395 10,585-------------------------- -------- ------- ------- -------Non-Current Liabilities 40,096 11,884-------------------------- -------- ------- ------- -------Net Assets 745,506 598,292-------------------------- -------- ------- ------- -------Net asset value per ordinary share 2,001.21p 1,545.07p-------------------------- -------- ------- ------- ------- Unaudited Consolidated Cash Flow Statement ----------------------- -------- -------- -------- --------For the year ended 30 September £'000 2007 £'000 2006 £'000 £'000 ----------------------- -------- -------- -------- --------Operating ActivitiesPurchases of investments (353,116) (457,865)Amounts paid under incentive (28,641) (13,691)schemesSales of investments 415,782 460,114Dividends and distributions 2,221 14,560receivedOther investment income received 26,073 28,323Interest income received 2,098 2,139Other income received 297 297Expenses paid (14,638) (13,407)Taxation paid (6,574) (7,380)----------------------- -------- -------- -------- --------Net Cash Inflow from Operating 43,502 13,090Activities -------- -------- -------- -------------------------------Financing Activities 71,680Bank loans drawn (56,680)Bank loans repaid 126,932 (64,257)Purchase of own shares (123,109) -Loans received (22,304) (7,451)Finance costs - (222)Other finance costs (9,792) (8,592)Dividend paid (471) (6,375) ----------------------- -------- -------- -------- --------Net Cash Outflow from Financing (35,119) (65,522)Activities -------- -------- -------- -------------------------------Changes in cash and cash 8,383 (52,432)equivalentsCash and cash equivalents at 1 9,875 62,610OctoberTranslation difference (1,310) (303)----------------------- -------- -------- -------- --------Cash and cash equivalents at 30 16,948 9,875September -------- -------- -------- -------- The financial information has been prepared in accordance with IFRS, IFRICinterpretations and parts of the Companies Act 1985 applicable to companiesreporting under IFRS. The accounting policies set out in the 2006 Annual Report have been consistentlyapplied in the preparation of this financial information. Revenue includes dividends of £2.2 million and interest of £32.2 million (2006:dividends of£7.3 million and interest of £26.2 million). ----- E N D ----- This information is provided by RNS The company news service from the London Stock Exchange