23 Jan 2007 17:37
Second Interim Results: M&G High Income Investment Trust P.L.C.
The Company's revenue earnings per Package Unit were 3.0p. In respect of the review period, the Company declared two quarterly dividends of 1.15p per Income Share, making a total of 2.30p. This represented an increase of 4.5% compared with the total of 2.20p per Income Share declared in respect of the same period last year. The rate of increase was also above the 3.9% annualised rate of inflation as measured by the Retail Prices Index (RPI) in November 2006. As at the period end, the yields on the Company's Package Units and Income & Growth Units were 3.4% and 5.8% respectively, compared with the yield of 3.0% on the FTSE All-Share Index.
On a net asset value (NAV) basis, each Package Unit produced a total return of 9.7% over the six months to 30 November 2006. This was ahead of total returns of 8.6% and 8.1% respectively on the FTSE All-Share Index and the FTSE 350 Higher Yield Index over the same period.
At the close of the review period, there was a market price premium of 1.0% to Package Unit NAV, compared with a discount of 1.5% at the start of the period. The mid-market price at the period end was 157p and the NAV 155.42p. On a mid-market price basis the total return on the Company's Package units was 12.5% over the six-month period. This was a particularly creditable outcome in the context of the slight underperformance of higher yielding shares relative to the market over the review period.
Income statement (unaudited)for the 6 months ended 30 November 2006 2005 Revenue Capital Total Revenue Capital Total ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 ‚£000 -------------- ------------- -------------- --------------
-------------- --------------
Net gains on - 6,157 6,157 - 5,781 5,781investmentsIncome 1,825 - 1,825 1,775 - 1,775Investment (156) (317) (473) (138) (280) (418)management feeOther expenses (61) - (61) (52) - (52) -------------- ------------- -------------- --------------
-------------- --------------
Net return 1,608 5,840 7,448 1,585 5,501 7,086before financecosts and taxFinance costs: - (1,129 (1,129) - (1,042) (1,042)AppropriationsFinance costs: (1,687) - (1,687) (1,606) - (1,606)Dividends -------------- ------------- -------------- --------------
-------------- --------------
Net return on (79) 4,711 4,632 (21) 4,459 4,438ordinaryactivitiesbefore taxTax on - - - - - -ordinaryactivities -------------- ------------- -------------- --------------
-------------- --------------
Net return on (79) 4,711 4,632 (21) 4,459 4,438ordinaryactivitiesafter tax -------------- ------------- -------------- --------------
-------------- --------------
Return per - 2.11p 2.11p - 1.95p 1.95pZero DividendPreferenceShareRevenue 3.00p - 3.00p 2.96p - 2.96pearnings perIncome ShareReturn per - 8.80p 8.80p - 8.33p 8.33pCapital ShareTotal return 3.00p 8.80p 11.80p 2.96p 8.33p 11.29pper Income &Growth UnitTotal return 3.00p 10.91p 13.91p 2.96p 10.28p 13.24pper PackageUnit
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(unaudited)for the 6 months ended 2006 200530 November ‚£000 ‚£000 -------------- --------------Return on ordinary 4,632 4,438activities after taxAdd finance costs: 1,129 1,042Appropriations -------------- --------------Net movement in net 5,761 5,480assets attributable toshareholdersOpening net assets 77,475 68,034attributable toshareholders (allnon-equity) -------------- --------------Closing net assets 83,236 73,514attributable toshareholders (allnon-equity) -------------- --------------Balance sheet (unaudited)As at 30 November 2006 2005 ‚£000 ‚£000 -------------- --------------Fixed assetsPortfolio of investments 82,265 71,638 -------------- --------------Current assetsDebtors 782 698Cash at bank and short term 643 1,207deposits -------------- -------------- 1,425 1,905 -------------- --------------Net financial assets 83,690 73,543Creditors: Amounts falling (454) (29)due within one year -------------- --------------Net assets attributable to 83,236 73,514shareholders (allnon-equity) -------------- --------------Net assets attributable toShareholders (unaudited)As at 30 November 2006 2005 ‚£000 ‚£000 -------------- --------------Zero Dividend Preference 25,871 23,627ShareholdersIncome Shareholders 39,073 38,857Capital Shareholders 18,292 11,030 -------------- --------------Net assets attributable to 83,236 73,514shareholders (allnon-equity) -------------- --------------
Capital and reserves attributable to shareholders (unaudited)
As at 30 2006 2005November ‚£000 ‚£000 -------------- --------------Called up 1,607 1,607share capitalCapital 15,555 15,555redemptionreserveZero Dividend 14,930 12,722PreferenceShareappropriationreserveSpecial 37,170 37,170reserveCapital (4,506) (6,085)reserves -realised- unrealised 16,894 11,l74Revenue 1,586 1,371reserve -------------- --------------Net assets 83,236 73,514attributabletoshareholders(allnon-equity) -------------- --------------Net asset 48.31p 44.12pvalue perZero DividendPreferenceShareNet asset 72.96p 72.56pvalue perIncome ShareNet asset 34.15p 20.60pvalue perCapital ShareNet asset 107.11p 93.16pvalue perIncome &Growth UnitNet asset 155.42p 137.28pvalue perPackage UnitCash flowstatement(unaudited) for the 6 2006 2006 2005 2005months ended30 November ‚£000 ‚£000 ‚£000 ‚£000 -------------- -------------- -------------- --------------Net cash 1,218 1,081inflow fromoperatingactivitiesServicing offinanceDividends (1,687) (1,606)paid(non-equity)FinancialinvestmentCapital 723 283distributionsPurchase of (7,986) (5,344)investmentsSale of 7,809 6,217investments -------------- -------------- 546 1,156 -------------- --------------Net increase 77 631in cash -------------- --------------Portfolio of Investments 2006 2006 ‚£000's %Oil & gas producers 8.68 BP 3,588 4.31 Royal Dutch Shell 'B' 3,634 4.37
Oil equipment services & distribution 0.80
Hunting 665 0.80 Chemicals 0.40 Croda International 108 0.13 Yule Catto & CO. 223 0.27 Mining 1.62 Anglo American 118 0.14 Lonmin 1,228 1.48 Aerospace & defence 0.74 Meggitt 298 0.36 Rolls-Royce Group 320 0.38 Construction & materials 1.02 Hanson 146 0.18 Marshalls 696 0.84
Electronic & electric equipment 0.35
Acal 290 0.35 General industrials 0.70 Smith (D.S.) 582 0.70 Industrial engineering 2.75 Halma 649 0.78 IMI 520 0.62 Rotork 605 0.73 Vitec Group 514 0.62 Industrial transport 1.54 BBA Group 480 0.58 Wincanton 802 0.96 Support services 2.01 Biffa 184 0.22 Davis Service Group 382 0.46 Electrocomponents 422 0.51 Fiberweb 87 0.10 Rentokil Initial 600 0.72 Automobiles & parts 1.37 GKN 365 0.44 Tomkins 775 0.93 Beverages 1.92 Diageo 732 0.88 Scottish & Newcastle 864 1.04 Food producers 2.66 Rhm 614 0.74 Tate & Lyle 637 0.77 Unilever 954 1.15 Household goods 2.43 Barratt Developments 1,657 1.99 Persimmon 365 0.44 Tobacco 2.86 British American Tobacco 719 0.86 Gallaher Group 1,664 2.00
Pharmaceuticals & biotechnology 2.76
GlaxoSmithKline 2,297 2.76 General retailers 4.51 Alliance Boots 634 0.76 Carpetright 876 1.05 DSG International 877 1.05 Findel 471 0.57 Kingfisher 243 0.29 Smiths News 383 0.46 Topps Tiles 275 0.33 Media 1.80 ITV 559 0.67 Pearson 300 0.36 Trinity Mirror 637 0.77 Travel & leisure 3.35 Compass Group 1,004 1.21 FirstGroup 825 0.99 Rank Group 486 0.58
Wolverhampton & Dudley Breweries 476 0.57
Fixed line telecommunications 2.22 BT Group 1,848 2.22 Mobile telecommunications 3.88 Vodafone Group 3,228 3.88 Electricity 3.51 Scottish & Southern Energy 1,455 1.75 Scottish Power 1,133 1.36 Viridian Group 330 0.40 Gas, water & multiutilities 8.50 Centrica 661 0.79 Kelda Group 1,384 1.66 National Grid 859 1.03 Northumbrian Water Group 907 1.09 Pennon Group 1,460 1.75 Severn Trent 682 0.82 United Utilities 1,132 1.36 Banks 17.19 Alliance & Leicester 1,363 1.64 Barclays 3,403 4.09 Bradford & Bingley 1,161 1.39 HBOS 1,041 1.25 HSBC Holdings 3,518 4.23 Lloyds TSB Group 1,892 2.27 Royal Bank of Scotland Group 1,934 2.32 Equity investment instruments 0.61
Merrill Lynch Commodities Income Investment Trust 509 0.61
General financial 1.30 Close Brothers Group 491 0.59 Provident Financial 591 0.71 Life insurance 3.61 Aviva 799 0.96 Friends Provident 936 1.12 Legal & General Group 454 0.55 Old Mutual 415 0.50 Prudential 403 0.48 Real estate 1.05 Brixton 49 0.06 Great Portland Estates 459 0.55 Slough Estates 365 0.44
Non convertible preference shares 8.51 Aviva 8.75% Cum. Irrd. Pref. 2,156 2.59 General Accident 8.875% Cum. Irrd. Pref. 1,089 1.31 HBOS 6.475% Non-Cum. Irrd. Pref. 1,098 1.32 HBOS 9.25% Non-Cum Irrd. Pref. 310 0.37 HBOS 9.75% Non-cum. Irrd. Pref. 897 1.08 National Westminster 9% Series 'A' Non-Cum. Pref. 614 0.74 Royal & Sun Alliance 7.375% Cum. Irrd. Pref. 294 0.35 Standard Chartered 7.375% Non-Cum. Irrd. Pref. 623 0.75 `A' credit rated bonds 2.41 London Merchant Securities 6.5% 2026 287 0.34 HSBC Bank Var. Rate Perp. 1,500 1.80 National Westminster Bank Var. Rate Perp. 223 0.27 `BBB' credit rated bonds 1.28 DWR Cymru Financing Var. Rate 2036 764 0.92 Mitchells & Butlers Finance 6.469% 2032 302 0.36
Bonds with no credit ratings 0.50 Shaftesbury 8.5% 2024 416 0.50 Total investments 82,265 98.84 Current assets 1,425 1.71 Net financial assets 83,690 100.55
Creditors: Amounts falling due within one year (454) (0.55) Total assets less current liabilities 83,236 100.00 Creditors: Amounts falling after more than one year - - Net assets attributable to shareholders (all non-equity) 83,236 100.00
Total Investments comprise: Equity shares 71,692 86.14 Convertible securities - -
Fixed income securities (excluding convertibles) 8,086 9.71 Other investments (including variable rate bonds) 2,487 2.99
82,265 98.84 J. P. McClellandSecretary
M & G HIGH INCOME INVESTMENT TRUST PLC