24 Jul 2007 15:56
FINAL RESULTS M&G High Income Investment Trust P.L.C.
Performance during the year
On a net asset value (NAV) basis, each Package Unit produced a total return of 19.7% over the year to 31 May 2007.
This was lower than the total return of 21.7% from the FTSE All-Share Index over the same period, but ahead of the total return of 17.9% from the FTSE 350 Higher Yield Index.
On a mid-market price basis, however, the total return on the Company's Package Units was 25.7%, since at the year end the market price was at a premium of 3.4% to the NAV, compared with a discount of 1.5% on 31 May 2006.
The Company's revenue earnings per Package Unit were 5.98p. In respect of theyear, the Company declared three interim dividends each of 1.15p per IncomeShare and a fourth interim of 2.20p per Income Share, bringing the total inrespect of the year to 5.65p. This represents an increase of 6.6% over thetotal of 5.3p in respect of the previous year. The rate of income growth wasabove the latest annual rate of inflation of 4.3% in May as measured by theRetail Prices Index (RPI). As at the year end, the yield on the Company'sPackage Units was 3.3%, compared with the yield of 2.7% on the FTSE All-ShareIndex.Income statement (audited) for the year ended 31 May 2007 2006 Revenue Capital Total Revenue Capital Total ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 -------------- ------------- --------------
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Net gains on investments - 12,507 12,507 - 9,754 9,754 Income 3,646 - 3,646 3,462 - 3,462 Investment management fee (326) (661) (987) (289) (586) (875) Other expenses (118) - (118) (116) - (116) -------------- ------------- -------------- -------------- ------------- -------------- Net return before finance 3,202 11,846 15,048 3,057 9,168 12,225costs and tax Finance costs: - (2,297) (2,297) - (2,121) (2,121)Appropriations Finance costs: Dividends (2,919) - (2,919) (2,784) - (2,784) -------------- ------------- --------------
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Net return on ordinary 283 9,549 9,832 273 7,047 7,320activities before tax Tax on ordinary activities - - - - - - -------------- ------------- --------------
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Net return on ordinary 283 9,549 9,832 273 7,047 7,320activities after tax -------------- ------------- --------------
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Return per Zero Dividend - 4.29p 4.29p - 3.96p 3.96pPreference Share Revenue earnings per 5.98p - 5.98p 5.71p - 5.71pIncome Share Return per Capital Share - 17.83p 17.83p - 13.16p 13.16p Total return per Income & 5.98p 17.83p 23.81p 5.71p 13.16p 18.87pGrowth Unit Total return per Package 5.98p 22.12p 28.10p 5.71p 17.12p 22.83pUnit
The total column of this statement is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
No operations were acquired or discontinued during the period.
A statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.
Statement of movements in net assets attributable to shareholders (audited)
For the year ended 31 May 2007 2006 ‚£000 ‚£000 -------------- -------------- Net return on ordinary 9,832 7,320activities after tax Add finance costs: 2,297 2,121Appropriations -------------- -------------- Net movement in net assets 12,129 9,441
attributable to shareholders
Opening net assets 77,475 68,034
attributable to shareholders
(all non-equity) -------------- -------------- Closing net assets 89,604 77,475
attributable to shareholders
(all non-equity) -------------- --------------Balance sheet (audited) As at 31 May 2007 2006 ‚£000 ‚£000 -------------- -------------- Fixed assets Portfolio of investments 88,311 76,372 -------------- -------------- Current assets Debtors 706 938
Cash at bank and short-term 630
566deposits -------------- -------------- 1,336 1,504 -------------- -------------- Total financial assets 89,647 77,876
Creditors: Amounts falling due (43)
(401)within one year -------------- -------------- Net assets attributable to 89,604 77,475
shareholders (all non-equity)
-------------- -------------- Net assets attributable to Shareholders (audited) 2007 2006 ‚£000 ‚£000 -------------- -------------- Zero Dividend Preference 27,065 24,720Shareholders Income Shareholders 39,435 39,152 Capital Shareholders 23,104 13,603 -------------- -------------- Net assets attributable to 89,604 77,745
shareholders (all non-equity)
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Net asset value per Zero 50.54p
46.16p
Dividend Preference Share Net asset value per Income 73.64p
73.11pShare
Net asset value per Capital 43.14p
25.40pShare
Net asset value per Income & 116.78p
98.72pGrowth Unit
Net asset value per Package 167.32p
144.67pUnit Cash flow statement (audited) for the year ended 31 May 2007 2007 2006 2006 ‚£000 ‚£000 ‚£000 ‚£000 -------------- -------------- -------------- -------------- Net cash inflow from 2,385 2,267operating activities Servicing of finance
Dividends paid (non-equity) (2,919)
(2,784) Financial investment Capital distributions 837 462 Purchase of investments (17,548) (9,943) Sale of investments 17,309 9,988 -------------- -------------- 598 507 -------------- --------------
Net increase / (decrease) in 64
(10)cash -------------- --------------Portfolio of investmentsAs at 31 May 2007Oil & gas producers 9.83 BP 4,516 5.04 Royal Dutch Shell 'B' 4,293 4.79 Oil equipment, services & distribution 0.90 Hunting 802 0.90 Chemicals 0.26 Yule Catto 236 0.26 Mining 1.94 Anglo American 152 0.17 Lonmin 1,587 1.77 Aerospace & defence 0.95 Meggitt 479 0.53 Rolls-Royce Group 374 0.42 Construction & materials 1.07 Hanson 215 0.24 Marshalls 741 0.83 Electronic & electric equipment 0.45 Acal 400 0.45 General industrials 0.91 Smith (D.S.) 813 0.91 Industrial engineering 2.77 Halma 579 0.65 IMI 603 0.67 Rotork 689 0.77 Vitec Group 612 0.68 Industrial transportation 1.51 BBA Aviation 478 0.53 Wincanton 875 0.98 Support services 3.40 Biffa 229 0.26 Davis Service Group 608 0.68 Electrocomponents 464 0.52 Premier Farnell 321 0.36 Rentokil Initial 859 0.96 Smiths News 555 0.62 Automobiles & parts 1.53 GKN 489 0.55 Tomkins 875 0.98 Beverages 2.06 Diageo 808 0.90 Scottish & Newcastle 1,038 1.16 Food producers 2.35 Premier Foods 721 0.80 Tate & Lyle 300 0.33 Unilever 1,091 1.22 Household goods 1.60 Barratt Developments 1,091 1.22 Persimmon 342 0.38 Tobacco 0.95 British American Tobacco 855 0.95 Pharmaceuticals & biotechnology 2.92 GlaxoSmithKline 2,620 2.92 Food & drug retailers 1.01 Alliance Boots 903 1.01 General retailers 3.05 Carpetright 832 0.93 DSG International 841 0.94 Findel 559 0.62 Topps Tiles 499 0.56 Media 1.75 ITV 586 0.65 Pearson 269 0.30 Trinity Mirror 718 0.80 Travel & leisure 4.04 Compass Group 1,320 1.47 FirstGroup 277 0.31 Holidaybreak 878 0.98 Marston's 303 0.34 Rank Group 202 0.23 William Hill 632 0.71 Fixed line telecommunications 2.76 BT Group 2,471 2.76 Mobile telecommunications 4.41 Vodafone Group 3,950 4.41 Electricity 1.53 Scottish & Southern Energy 1,371 1.53 Gas, water & multi-utilities 7.81 Centrica 766 0.85 Kelda Group 920 1.03 National Grid 979 1.09 Northumbrian Water Group 864 0.96 Pennon Group 1,690 1.89 Severn Trent 628 0.70 United Utilities 1,157 1.29 Banks 19.36 Alliance & Leicester 1,481 1.65 Barclays 3,610 4.03 Bradford & Bingley 1,263 1.41 HBOS 1,087 1.21 HSBC Holdings 4,757 5.31 Lloyds TSB Group 2,013 2.25 Royal Bank of Scotland Group 3,138 3.50 Equity investment instruments 1.31 Ecofin Water & Power Opportunities 551 0.62 Merrill Lynch Commodities Income Investment 616 0.69Trust General financial 1.34 Close Brothers Group 473 0.53 Provident Financial 728 0.81 Life insurance 3.43 Aviva 838 0.94 Friends Provident 891 0.99 Legal & General Group 461 0.51 Old Mutual 433 0.48 Prudential 461 0.51 Non-life insurance 1.30 Catlin Group 380 0.42 Royal & Sun Alliance 790 0.88 Real estate 0.44 Great Portland Estates 36 0.04 Segro (formerly Slough Estates) 358 0.40 Non convertible preference shares 7.49 Aviva 8.75% Cum. Irrd. Pref. 2,055 2.29 General Accident 8.875% Cum. Irrd. Pref. 1,043 1.16 HBOS 6.475% Non-cum. Irrd. Pref. 1,030 1.15 HBOS 9.25% Non-cum. Irrd. Pref. 291 0.33 HBOS 9.75% Non-cum. Irrd. Pref. 843 0.94
National Westminster 9% Series 'A' Non-cum. 579 0.65 Pref.
Royal & Sun Alliance 7.375% Cum. Irrd. Pref. 283 0.32
Standard Chartered 7.375% Non-cum. Irrd. Pref. 583 0.65
'A' credit rated bonds 0.55 London Merchant Securities 6.5% 2026 277 0.31 National Westminster Bank Var. Rate Perp. 217 0.24 'BBB' credit rated bonds 1.15 DWR Cymru Financing Var. Rate 2036 742 0.83 Mitchells & Butlers Finance 6.469% 2032 290 0.32 Bonds with no credit ratings 0.43 Shaftesbury 8.5% 2024 388 0.43 Total investments 88,311 98.56 Current assets 1,336 1.49 Total financial assets 89,647 100.05
Creditors: Amounts falling due within one year (43) (0.05)
Net assets attributable to shareholders (all 89,604 100.00 non-equity)
Note
The results for 2006 are based on financial statements filed with the Registrarof Companies which carry an audit report which is unqualified and includes nomatters of adverse comment.
The 2007 figures have been extracted from the audited financial statements which will be filed with the Registrar of Companies with an unqualified audit report with no matters of adverse comment.
The Annual Report and Financial Statements will be posted to shareholders on orbefore 07 August 2007 and the Annual General Meeting will be held at 12.15 pmon 11 September 2007 at Laurence Pountney Hill, London EC4R 0HH.
J. P. McClelland
Secretary
M & G HIGH INCOME INVESTMENT TRUST PLC