MAIL.L Regulatory News (MAIL)

13 Feb 2006 10:04

Man Alternative Investments Ld13 February 2006 Man Alternative Investments Limited Preliminary Announcement of Interim Results For the period ended 30 November 2005 The directors announce the statement of results for the period from 1 May 2005to 30 November 2005. This statement has been prepared consistently with priorperiod financial statements. The board anticipate that the interim accounts willbe dispatched to shareholders on or about 22 February 2006. Period ended Period ended 30 November 30 November 2005 2004 GBP GBPIncomeInterest income 8,653 2,789--------------- --------------- ------------ ExpensesAudit fees 8,260 8,000Custodian and safekeeping fees 5,688 5,371Directors' fees and expenses 25,585 16,764Foreign currency exchange (gains)/losses (1,371,195) 1,007,540Loan costs 186,954 83,704Management fees 180,055 167,850Miscellaneous expenses 46,416 27,574 --------------- ------------- (918,237) 1,316,803 --------------- -------------Income less expenses 926,890 (1,314,014) --------------- -------------Net investment gainsNet realised gains on sale of investments in otherinvestment companies and limited partnerships - fair value through profit or loss 542,430 426,375Change in unrealised gains/(losses) on revaluationof investments in other investment companies and limited partnerships - fair value through profit or loss 1,757,449 (172,585)Change in unrealised gains on hedge instrument 939,070 1,487,532Net realised losses on hedge instrument (2,280,982) (131,232) --------------- ------------- 957,967 1,610,090 --------------- -------------Net gains for the period 1,884,857 296,076 --------------- ------------- Basic and diluted gains per ordinary share 5.71p 0.90p --------------- ------------- All items in the above statement are derived from continuing operations. Period ended Period ended 30 November 30 November 2005 2004 GBP GBP Balance at beginning of period 27,516,552 27,002,166 Net gain for the period 1,884,857 296,076 --------------- --------------Balance at end of period 29,401,409 27,298,242 --------------- -------------- 30 November 31 May 2005 2005 GBP GBPAssets Non-current assetsInvestments in other investment companies and limited partnerships at fair value - fair value through profit or loss 36,252,140 33,451,369Unrealised loss on hedge instrument (365,998) (1,305,068) ----------------- -------------- 35,886,142 32,146,301 Current assetsCash and cash equivalents 129,545 369,160Debtors 388,542 1,155,588 ----------------- -------------- 518,087 1,524,748Current liabilities (7,002,820) (6,154,497) ----------------- --------------Net assets 29,401,409 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 (3,213,087) (5,097,944) ----------------- --------------Total shareholders' equity 29,401,409 27,516,552 ----------------- -------------- Net asset value per ordinary share 89.10p 83.38p Number of ordinary shares 33,000,000 33,000,000 Period ended Period ended 30 November 30 November 2005 2004 GBP GBPCash flows from operating activities Interest received 8,184 2,146Operating expenses (262,601) (239,215) --------------- --------------Net cash used in operating activities a (254,417) (237,069) --------------- ---------------Cash flows from investing activitiesPurchase of investments in other investmentcompanies and limited partnerships (5,894,628) (6,177,471)Sale of investments in other investment companies and limited partnerships 7,531,312 8,406,069Related gain on foreign exchange hedge (2,280,982) (1,964,660) --------------- -------------Net cash used in investing activities (644,298) 263,938 --------------- -------------Cash flows from financing activitiesIncrease in loan from Man Investments AG 850,740 773,044Loan facility fees (7,048) (6,877)Interest expense paid (184,592) (71,539) --------------- -------------Net cash provided/used in by financingactivities 659,100 694,628 --------------- -------------(Decrease)/increase in cash and cash bequivalents (239,615) 721,497 --------------- ------------- Notesa. Reconciliation of net cash used in operating activitiesIncome less expenses 926,890 (1,314,014)Add back: Foreign exchange (gain)/loss (1,371,195) 1,007,540Add back: Loan facility fees 7,048 6,877Add back: Interest expense paid 184,592 71,539Decrease/(increase) in prepayments and sundry debtors 665 2,172Increase/(decrease) in accruals (2,417) (11,183) --------------- ------------- (254,417) (237,069) --------------- ------------- b. Analysis of changes in cash and cash equivalentsCash at beginning of year 369,160 81,377(Decrease)/increase in cash and cash equivalents (239,615) 721,497 --------------- -------------Cash and cash equivalents at end of period 129,545 802,874 --------------- ------------- I am pleased to report again to our shareholders on our interim results for thesix months to 30 November 2005 and on relevant developments during the periodunder review.The background to the period was that global stock markets rallied, while USbond markets trended downwards as the Federal Reserve continued to increase USinterest rates in a bid to cool inflationary pressures. Oil prices soared overthe first four months as short-term supply and refining shocks were realised andthe hurricane season hit the Gulf of Mexico. Oil exporting emerging marketeconomies benefited, especially Russia, as the domestic economy boomed on theback of petro-dollars. Contracts in precious metals traded higher as investorscontinued to demand gold as a hedge against inflation.Performance from the Glenwood portfolio was very positive over the period asgains were posted by the majority of trading styles. Commodity & trading was themost profitable style. Despite losses incurred in October, which trimmed profitsfrom most styles, the overall result was most encouraging.The last six months has seen a considerable improvement in performance, with theNAV increasing just under 7% in the period. This improved performance hascontinued into the next reporting period, with the NAV recording its biggestgain, since currency hedging was introduced in May 2004, of more than 2.5% forthe month ending December 2005. The benefits of the currency hedge in reducingthe volatility of the returns have continued to be apparent during the period.The Company continues to employ both long and short-term leverage in order toenhance the performance of the portfolio. This facility has been increasinglyutilised in the period as part of the investment adviser's strategy of strivingfor improved shareholder returns.The increase in NAV has had a marked effect on the market discount to the NAVper share and at the end of the period it was standing at less than 4%.In December 2005 the Annual General Meeting reconfirmed investors' desire forthe continuation of the company and renewed the authority of the board tointervene in the market, by buying back shares.The board is hopeful that the recent strong performance of the Company willcontinue and looks forward to further shareholder support. Sir Brian RichardsChairman11 February 2006 This information is provided by RNS The company news service from the London Stock Exchange