MAIL.L Regulatory News (MAIL)

28 Sep 2006 17:30

Man Alternative Investments Ld28 September 2006 Man Alternative Investments Limited Preliminary Announcement of Annual Results For the year ended 31 May 2006 The Directors announce the statement of results for the period from 1 June 2005to 31 May 2006. This statement has been prepared consistently with prior yearsfinancial statements and was approved by the Board on 28 September 2006. Thefinancial information below does not constitute statutory accounts as defined ins240 of the Companies Act 1985. The auditors are yet to report on the statutoryaccounts for the year ended 31 May 2006; it is anticipated that their reportwill be unqualified, and will not contain statements under s237(2) or (3) of theCompanies Act 1985. The Board expect the statutory accounts will be dispatched to shareholders andwill be delivered to the Registrar of Companies on or about 20 October 2006. Consolidated income statement For the year ended 31 May 2006 (Expressed in Pounds Sterling) Year ended Year ended 31 May 2006 31 May 2005 GBP GBPIncomeInterest income 20,552 10,206 ----------- ----------- ExpensesAudit fees 17,520 16,000Custodian and safekeeping fees 11,967 10,898Directors' fees and expenses 40,110 33,452Foreign currency exchange gains/(losses) 667,834 (199,031)Loan costs 300,515 202,050Management fees 377,459 340,558Miscellaneous expenses 86,507 44,887 ----------- ----------- 1,501,912 448,814 ----------- -----------Income less expenses (1,481,360) (438,608) ----------- ----------- Net investment gainsNet realised gains on sale of investmentsin other investment companies and limitedpartnerships - at fair value through profit and loss 2,182,012 1,090,747Change in unrealised gains/(losses) on revaluationof investments in other investment companies andlimited partnerships - at fair value through profit and loss 2,715,738 (426,234)Net realised (losses)/gains on Forward currency contract (2,284,942) 1,785,354Change in unrealised gains/(losses) on Forward currency contract 3,321,611 (1,496,873) ----------- ----------- 5,934,419 952,994 ----------- -----------Net income for the year 4,453,059 514,386 ----------- ----------- Basic and diluted income per ordinary share 13.49p 1.56p ----------- ----------- Consolidated statement of changes in equityFor the year ended 31 May 2006 (Expressed in Pounds Sterling) Year ended Year ended 31 May 2006 31 May 2005 GBP GBP Balance at beginning of year 27,516,552 27,002,166 Net income for the year 4,453,059 514,386 ------------- -------------Balance at end of year 31,969,611 27,516,552 ------------- ------------- Consolidated balance sheet As at 31 May 2006 (Expressed in Pounds Sterling) 2006 2005 GBP GBPAssets Non-current assetsInvestments in other investment companies and limitedpartnerships at fair value through profit and loss 29,842,239 33,451,369Unrealised gain/(loss) on Forward currency contract 2,016,543 (1,305,068) ------------- ------------- 31,858,782 32,146,301 ------------- ------------- Current assetsCash and cash equivalents 90,798 369,160Accounts receivable 178,642 1,155,588 ------------- ------------- 269,440 1,524,748 ------------- ------------- Current liabilitiesLoan from Man Investments AG - (6,013,830)Accruals (158,611) (140,667) ------------- ------------- (158,611) (6,154,497) ------------- ------------- Net assets 31,969,611 27,516,552 ------------- ------------- Which are represented by: Shareholders' equity Called up share capital 33,000 33,000Share premium 581,496 581,496Capital reserve 32,000,000 32,000,000Accumulated losses (644,885) (5,097,944) ------------- -------------Total shareholders' equity 31,969,611 27,516,552 ------------- ------------- Net asset value per ordinary share 96.88p 83.38p ------------- ------------- Number of ordinary shares 33,000,000 33,000,000 ------------- ------------- Consolidated statement of cash flowsFor the year ended 31 May 2006(Expressed in Pounds Sterling) Year ended Year ended 31 May 2006 31 May 2005 GBP GBPCash flows from operating activities Interest income received 17,990 8,220Operating expenses (518,410) (437,741) ----------- ----------- Net cash used in operating activities a (500,420) (429,521) ----------- ----------- Cash flows from investing activitiesPurchases of investments in other investment companiesand limited partnerships (11,111,337) (16,107,403)Sales of investments in other investment companiesand limited partnerships 19,932,682 14,411,262Realised (loss)/gain on Forward currency contract (2,284,942) 1,785,354--------------- --------------- Net cash provided by investing activities 6,536,403 89,213--------------- --------------- Cash flows from financing activities(Decrease)/increase in loan from Man Investments AG (5,995,238) 820,168Loan facility fees 1,346 (13,492)Interest expense paid (320,453) (178,585) ----------- ----------- Net cash (used in)/provided by financing activities (6,314,345) 628,091 ----------- ----------- (Decrease)/increase in cash b (278,362) 287,783 ----------- ----------- Supplemental disclosures of cash flow information:Interest paid 139,615 247,354 ----------- ----------- Notes a. Reconciliation of net cash used in operating activities Income less expenses (1,481,360) (438,608) Add back: Foreign currency exchange gains/(losses) 667,834 (199,031) Add back: Loan facility fees (1,346) 13,492 Add back: Interest expense paid 320,453 178,585 (Increase)/decrease in prepayments and sundry debtors (5,353) 10,343 (Decrease)/increase in accruals (648) 5,698 ----------- ----------- (500,420) (429,521) ----------- ----------- b. Analysis of changes in cash and cash equivalents Cash and cash equivalents at beginning of year 369,160 81,377 (Decrease)/increase in cash and cash equivalents (278,362) 287,783 ----------- ----------- Cash and cash equivalents at end of year 90,798 369,160 ----------- ----------- CHAIRMAN'S STATEMENT FOR YEAR ENDED 31 MAY 2006 RESULTS I am pleased to report on our fifth year of trading. The Company has enjoyed a year of strong performance, with the net asset valueper share gaining over 16% in the year to 31 May 2006. During the first half of2005 financial year the net asset value per share rose 6.9%, followed by afurther 9.3% in the second half. The active management of Man-Glenwood hasproduced these robust results and, as a result, we have done well against ourpeer group. The period was a good one for hedge funds generally and helped restoreconfidence in the sector after an indifferent outcome for the previous year. Investors have gained through the period by a continuation of the closure of thediscount to net asset value, from 7% to just over 2% at year-end. The past decisions to concentrate the portfolio with fewer managers and totarget a increased volatility have continued to bear fruit. The managerconsiders the portfolio to be well positioned at this time and no substantivechanges are anticipated in the coming year. Since the year end one of the Company's ten largest holdings, AmaranthInternational Ltd (as at 31 August 2006 a 2.35% position), suffered a correctionwhich could reduce calendar year-to-date gains for the Company. However, it isnot possible at this stage to calculate precisely the effect which the lossessustained by Amaranth will have upon the Company's net asset value goingforward. Other investments continue to perform as expected. Once again, as required under the Articles of Association of the Company, thebusiness to be proposed at the Annual General Meeting includesa resolution proposing the continuation of the Company. Despite the setbacknoted above, the improvement in asset performance in recent months, coupled withthe reduction in share price volatility, give the Board grounds for cautiousoptimism as to the future of the Company, and accordingly the Board isrecommending to shareholders that they vote in favour of continuation at theMeeting. The Board is conscious that the relatively small size of the Company limitsliquidity and will be looking at the possibilities of addressing this in thecoming period. Such plans are dependent on the performance of the Company, aswell as that of the wider marketplace and investor demand. The Board joins me in thanking our shareholders for their support over this lastyear and we look forward to the future with enthusiasm. Sir Brian Richards Chairman This information is provided by RNS The company news service from the London Stock Exchange