New Star Inv Regulatory News (NSI)

24 Oct 2005 13:12

CORRECTIONThe following Preliminary announcement of annual results was incorrectlyreleased under the name of New Star Asset Management Limited on 20th October2005:NEW STAR INVESTMENT TRUST PLCPRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTSThe Directors announce the unaudited statement of consolidated results for theyear ended 30 June 2005 as follows: CONSOLIDATED STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT) for the year ended 30th June 2005 Year Year ended ended 30th 30th June June 2005 2004 Revenue Capital Total Revenue Capital Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Gain on - 13,686 13,686 - 11,698 11,698investments Income 445 - 445 707 - 707 Gains on index - 271 271 - 198 198futures contracts Losses on forward currency - (518) (518) - - -purchases Investment Management fees (140) - (140) (150) - (150) Other expenses (217) - (217) (247) - (247) RETURN ON ORDINARY ACTIVITIES BEFORE INTEREST PAYABLE AND TAXATION 88 13,439 13,527 310 11,896 12,206 Interest payable - - - (6) - (6)and similar charges RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION 88 13,439 13,527 304 11,896 12,200 Taxation on (19) - (19) (37) - (37)ordinary activities RETURN ON ORDINARY ACTIVITIES AFTER TAXATION 69 13,439 13,508 267 11,896 12,163 Dividends (71) - (71) (177) - (177)proposed Transfer (from)/ (2) 13,439 13,437 90 11,896 11,986to reserves pence pence pence pence pence pence RETURN PER 0.10 18.92 19.02 0.38 16.75 17.13ORDINARY SHARE The revenue column of this statement is the Revenue Account of the Group. CONSOLIDATED BALANCE SHEET as at 30th June 2005 30th June 30th June 2005 2004 ‚£'000 ‚£'000 FIXED ASSETS Investments 78,119 65,662 CURRENT ASSETS Debtors 1,196 118 Cash at bank 1,928 1,615 3,124 1,733 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Creditors (613) (96) Dividend payable (71) (177) Net current assets 2,440 1,460 Total assets less current liabilities 80,559 67,122 CAPITAL AND RESERVES Called up share capital 710 710 Share premium 21,573 21,573 Capital reserve - realised (14,694) (16,609) Capital reserve - unrealised 15,835 4,311 Special reserve 56,908 56,908 Revenue reserve 227 229 EQUITY SHAREHOLDERS' FUNDS 80,559 67,122 pence pence Net Asset Value per Ordinary share 113.43 94.51 CONSOLIDATED CASH FLOW STATEMENT for the year ended 30th June 2005 Year ended Year ended 30th June 30th June 2005 2004 ‚£'000 ‚£'000 OPERATING ACTIVITIES Net cash outflow from operating activities (541) (40) SERVICING OF FINANCE Interest paid - (6) Net cash outflow from servicing of finance - (6) TAXATION Taxation paid - (28) - (28) CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of fixed asset investments (9,807) (5,061) Proceeds from the sale of fixed asset 10,621 5,976investments Gains on index futures contracts 271 198 Other exchange losses (54) (50) Net cash inflow from capital expenditure and 1,031 1,063financial investment Equity dividends paid (177) (121) Net cash inflow before financing 313 868 FINANCING Increase in cash 313 868Returns per shareRevenue Return per Ordinary share is based on the Group revenue return onordinary activities after taxation of ‚£69,000 (2004: ‚£267,000) and on71,023,695 (2004: 71,023,695) Ordinary shares, being the weighted averagenumber of Ordinary shares in issue during the year. Capital return per Ordinaryshare is based on net capital gains for the year of ‚£13,439,000 (2004: capitalgains of ‚£11,896,000) and on 71,023,695 (2004: 71,023,695) Ordinary shares,being the weighted average number of Ordinary shares in issue during the year.DividendThe Directors have declared a final dividend of 0.1p net (2004: 0.25p) perOrdinary share payable on 28 November 2005 to shareholders on the register atthe close of business on 28 October 2005. The ex-dividend date is 26 October2005.Net Asset Value per Ordinary ShareThe net asset value per Ordinary share of 113.43p (2004: 94.51p) is based onnet assets of ‚£80,559,000 (2004: ‚£67,122,000) and on 71,023,695 (2004:71,023,695) Ordinary shares, being the number of shares in issue at the yearend.The above financial information for the year ended 30 June 2005 does notconstitute statutory accounts as defined in section 240 of the Companies Act1985 and has been prepared on the basis of the accounting policies set out inthe statutory accounts of the Group for the year ended 30 June 2004. Thispreliminary statement of results has been agreed with our auditors, Ernst &Young LLP. The comparative financial information is based on the statutoryfinancial statements for the year ended 30 June 2004. Those financialstatements, upon which the auditors issued an unqualified opinion, have beendelivered to the Registrar of Companies. Statutory financial statements for theyear ended 30 June 2005 will be delivered to the Registrar of Companies.The annual report will be sent to shareholders in October and will be availableto members of the public from the registered office at 1 Knightsbridge Green,London SW1X 7NE. The Annual General Meeting of the Company will be held on 23November 2005 at 12 noon at 1 Knightsbridge Green, London SW1X 7NE. CHAIRMAN'S STATEMENT Your Company's total assets rose by 20.0% to ‚£80.6 million over the year to30th June 2005. This compares with a 14.9% rise in the FTSE All-Share Index.From inception in May 2000 to 30th June 2005, the net asset value per sharerose 13.9% against a 15.4% fall in the FTSE All-Share Index, with your Companyoutperforming in each of its five reporting periods. Initially thisoutperformance reflected the portfolio's high weighting of gilts and hedgefunds. Over the last four years, the portfolio's exposure to equity markets hasbeen increased through investments in retail funds.Net revenue for the year under review was ‚£69,000, which compares with ‚£267,000during the previous year. Your Directors recommend the payment of a finaldividend of 0.1p net per Ordinary share (annual dividend of 0.25p in 2004).Global equities traded within a narrow range during the summer and autumn of2004, affected by rising US interest rates, terrorism and the rising oil price.This lull gave way to a rebound in the late autumn as strong corporateearnings, a rise in takeover activity and relief that the US presidentialelection had a decisive outcome drove equity valuations higher. Further oilprice gains, exchange rate instability and tighter US monetary policy combinedto cap investor confidence in early 2005, with equities falling during theearly spring. Equities revived during the closing weeks of the year underreview, however, with investors confident that the US monetary tightening cyclewould come to an end sooner than expected and at a lower level.In the bond markets, investors' appetite for risk remained strong, withcorporate bonds and emerging market sovereign debt outperforming Group of Sevengovernment bonds. The picture was more mixed, however, in the UK equity market,with big companies underperforming medium-sized companies but outperformingsmall stocks.Buoyant bond markets caused some consternation among central bankers aiming torestrict consumer demand and inflation through tighter monetary policy, with MrGreenspan, the Federal Reserve Chairman, describing the fall in long-term USbond yields as a "conundrum". One explanation was abundant liquidity, with G7money supply growth in real terms running in excess of industrial outputgrowth, increasing the cash available for financial investment.The US monetary policy cycle turned in June 2004 and over the subsequent monthsthe Fed raised rates in a "measured" programme of quarter point rises, takingthe Fed Funds rate to 3.25% by the end of the year under review. In the UK, theBank of England raised rates just once to 4.75% in August 2004 but then peggedrates in response to evidence that UK inflationary pressures were declining.At the end of the year under review, investors were expecting modest, yetnon-inflationary economic growth to continue during the closing months of 2005.There were, however, expectations of a stronger pick-up in 2006 fuelled by aninvestment spending recovery in the US. Such economic growth, if it emerged,would follow a period of strong monetary expansion and a rise in capacityutilisation. As a result, producers could gain more pricing power and centralbanks might need to act quickly to forestall more generalised inflation.This suggests that bond investors may be more cautious over the coming months,waiting for renewed economic vigour to be reflected in bond yields. In theequity markets, there may be sector rotation from more interest rate sensitiveareas to industries with the best long term growth prospects. In such anenvironment, careful stock selection will remain important.This Annual Report will be the last for which Financial Statements are preparedon the basis of UK Generally Accepted Accounting Principles. For the financialyear to 30th June 2006 our Financial Statements will be prepared under therequirements of IFRS in accordance with the listing rules. The main differenceresulting from this change will be that the portfolio will be valued at bidprices rather than the current mid-market prices. The resulting reduction invalue of the portfolio on the new basis as at 30th June 2005 would beequivalent to 0.1p per Ordinary share.Mr John Craig resigned as Chairman and director of your Company on 31st August2005. Your directors thank him for his service to your Company over the pastfour years. I was elected following Mr Craig's retirement as a director andChairman in his place.Your Company's unaudited net asset value at 30th September 2005 was 121.23p.James RoeChairman20th October 2005ENDNEW STAR INVESTMENT TRUST PLC