MAIL.L Regulatory News (MAIL)

2 Feb 2005 17:00

Man Alternative Investments Ld02 February 2005 Man Alternative Investments Limited Preliminary announcement of interim results The Directors announce the unaudited statement of results for the period from 1June 2004 to 30 November 2004 Statement of operations For the period 1 June 2004 to 30 November 2004 Unaudited Unaudited Period ended Period ended 30 November 2004 30 November 2003 GBP GBP IncomeInterest income 2,789 4,875 --------------- --------------- ExpensesAudit fees 8,000 2,923Custodian and safekeeping fees 5,371 5,814Directors' fees and expenses 16,764 15,914Foreign currency exchange losses 1,007,540 1,415,866Loan costs 83,704 14,852Management fees 167,850 181,684Miscellaneous expenses 27,574 31,385 --------------- --------------- 1,316,803 1,668,438 --------------- --------------- Income less expenses (1,314,014) (1,663,563) --------------- --------------- Net investment gainsNet realised gains on sale of investments in other investment companies and limited partnerships - available for sale 426,375 235,722Change in unrealised (losses)/gains on revaluation of investments in other investment companies and limited partnerships - available for sale (172,585) 806,650Change in unrealised gains on hedge instrument 1,487,532 -Net realised (losses)/gains on hedge instrument (131,232) - --------------- --------------- 1,610,090 1,042,372 --------------- --------------- Net gains/loss for the period 296,076 (621,191) --------------- --------------- Basic and diluted gains per ordinary share 0.90p (1.88p) --------------- --------------- The Company was incorporated on 3 April 2001 and commenced operations on 24 May2001. The Company has no other recognised gains or losses other than those shownabove. Man Alternative Investments LimitedPreliminary announcement of interim results Statement of changes in equity for the period 1 June 2004 to 30 November 2004 Unaudited Unaudited Period ended Period ended 30 November 2004 30 November 2003 GBP GBP Balance at beginning of period 27,002,166 28,863,385 Net gain for the period 296,076 (621,191) ----------------- ----------------- Balance at end of period 27,298,242 28,242,144 ----------------- ----------------- Man Alternative Investments LimitedPreliminary announcement of interim results Consolidated balance sheetfor the period 1 June 2004 to 30 November 2004 Unaudited Unaudited 30 November 31 May 2004 2004 GBP GBP Assets Non-current assetsInvestments in other investment companies and limited partnerships at fair value- available for sale 30,563,907 30,944,436Unrealised gain on hedge instrument 1,679,337 191,805 ----------------- ----------------- 32,243,244 31,136,241 Current assetsCash and cash equivalents 802,874 81,377Debtors 342,616 1,113,179 ----------------- --------------- 1,145,490 1,194,556Current liabilities (6,090,492) (5,328,631) ----------------- -----------------Net assets 27,298,242 27,002,166 ----------------- ----------------- 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 (5,316,254) (5,612,330) ----------------- -----------------Total shareholders' equity 27,298,242 27,002,166 ----------------- ----------------- Net asset value per ordinary share 82.72p 81.82p Number of ordinary shares 33,000,000 33,000,000 Man Alternative Investments Limited Preliminary announcement of interim results Statement of Cash FlowsFor the period 1 June 2004 to 30 November 2004 Unaudited Unaudited Period ended Period ended 30 November 2004 30 November 2003 GBP GBP Cash flows from operating activities Interest received 2,146 5,831Operating expenses (239,215) (238,835) --------------- ---------------Net cash used in operating activities a (237,069) (233,004) --------------- --------------- Cash flows from investing activitiesPurchase of investments in other investment companies and limited partnerships (6,177,471) (5,432,478)Sale of investments in other investment companies and limited partnerships 8,406,069 8,262,782Foreign exchange hedge (1,964,660) - --------------- ---------------Net cash used in investing activities 263,938 2,830,304 --------------- --------------- Cash flows from financing activitiesIncrease in loan from Man Investments AG 773,044 -Loan repayment - (2,461,910)Loan facility fees (6,877) (7,625)Interest expense paid (71,539) (6,024) --------------- --------------- Net cash provided/used in by financingactivities 694,628 (2,475,559) --------------- ---------------(Decrease)/increase in cash and cash equivalents b 721,497 121,741 --------------- --------------- Notes a. Reconciliation of net cash used in operating activities Income less expenses (1,314,014) (1,663,563) Add back: Foreign exchange loss 1,007,540 1,415,866 Add back: Loan facility fees 6,877 7,625 Add back: Interest expense paid 71,539 6,024 Decrease/(increase) in prepayments and sundry debtors 2,172 2,811 Increase/(decrease) in accruals (11,183) (1,767) --------------- --------------- (237,069) (233,004) --------------- --------------- b. Analysis of changes in cash and cash equivalents Cash at beginning of year 81,377 1,464,620 (Decrease)/increase in cash and cash equivalents 721,497 121,741 --------------- --------------- Cash and cash equivalents at end of period 802,874 1,586,361 --------------- --------------- The above financial information does not constitute statutory accounts. The above financial information has been prepared using the accounting policiesset out in the Company's full year financial statements. Man Alternative Investments LimitedPreliminary announcement of interim results Chairman's StatementFor the period 1 June 2004 to 30 November 2004 I am pleased to report again to our shareholders, on our interim results for thesix months to 30 November 2004 and on relevant developments during the periodunder review. The strength in equity markets has continued over the past half-year, withcorporate earnings generally recovering and a strengthening in a number of themajor economies. The performance of the FTSE All-Share index rising strongly by6.75% illustrated the positive economic environment in the UK. The US stockmarket also proved healthy with a rise of 2.2% over the period. The Company'snet asset value was up by 1.1%, a welcome move upwards. The investment adviseris optimistic that the future performance will pick up. Performance in specificstrategies was mixed, but the majority of styles generated favourable results. Gains from the Event Driven, Multi-Strategy and Equity Hedge categories wereparticularly pronounced. Late in the period, the re-election of George W Bushand a fall in crude oil prices perpetuated a rise in equity values and acontraction in credit spreads, amid heightened optimism over the outlook for theglobal economy. Losses were recorded by the convertible bond managers, due tomarket fears of tighter US monetary policy. Further details are given later inthis report. In May 2004, just prior to the beginning of the period, the currency hedge wasput in place, implementing the shareholder's decision of earlier in 2004. Theeffect of the hedge has been to reduce the impact of the fluctuations of the USdollar against Sterling. Over the period the Sterling performance of theportfolio has stabilised, with the benefits of the hedge becoming apparent, asinvestors hoped it would. The performance of the portfolio is now more readilyreflected in the net asset value per share. The investment adviser determinesthe size and duration of the hedge on each maturity date. The Company continues to employ a limited amount of leverage in gaining thenecessary amount of investment exposure. The gearing level is actively managedby the investment adviser, particularly to take account of delays which mayarise in the receipt of redemption proceeds. The recovery in stock markets has not noticeably altered the level of dealing inMAIL, which remains relatively modest. The discount of the market price to thenet asset value has remained fairly stable over the period, at around 10%. As investors will know, in November 2004 the Annual General Meeting reconfirmedthe investors' desire for the continuation of the company. In addition, theauthority of the board to intervene in the market, by buying back shares, wasrenewed. While that may serve to boost shareholder value in the short-term,such a move would however involve liquidating a portion of investments and,given the long-term nature of the fund, this is not considered a sound long-termapproach. Nonetheless, the board will continue to review such options. The board joins me in thanking all our shareholders for your support. Sir Brian RichardsChairman 2 February 2005 This information is provided by RNS The company news service from the London Stock Exchange