New Star Inv Regulatory News (NSI)

9 Mar 2005 16:38

NEW STAR INVESTMENT TRUST PLCPRELIMINARY ANNOUNCEMENT OF UNAUDITED INTERIM RESULTSThe Directors announce the unaudited statement of consolidated results for thesix months ended 31st December 2004 as follows:CONSOLIDATED STATEMENT OF TOTAL RETURN(incorporating the revenue account*) of the Group 1st July 1st July to 31st December 2004 to 31st December 2003 Revenue Capital Total Revenue Capital Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Gains on investments - 5,577 5,577 - 8,493 8,493 Dividend and 349 - 349 587 - 587 interest income Gains on index futures contracts - 136 136 - 207 207 Investment (71) - (71) (74) - (74)management fee Other expenses (127) - (127) (141) - (141) Other exchange gains - 167 167 - (2) (2)/(losses) Return on ordinary activities before finance costs and taxation 151 5,880 6,031 372 8,698 9,070 Interest payable and similar charges - - - (6) - (6) Return on ordinary activities before taxation 151 5,880 6,031 366 8,698 9,064 Taxation on ordinary (19) - (19) (46) - (46)activities Return on ordinary activities after taxation 132 5,880 6,012 320 8,698 9,018 Dividends - - - - - - Transfer to reserves 132 5,880 6,012 320 8,698 9,018 * The revenue column of this statement is the consolidated revenue account ofthe Group. pence Pence Pence pence pence pence Return per Ordinary 0.19 8.28 8.47 0.45 12.25 12.70 share CONSOLIDATED BALANCE SHEET As at As at As at 31st December 30th June 2004 31st December 2003 2004 (unaudited) ‚£'000 (audited) ‚£'000 (unaudited) ‚£'000 Fixed assets Investments 69,578 65,662 61,887 Current assets Debtors 534 118 1,941 Cash at bank 3,183 1,615 424 3,717 1,733 2,365 Creditors: amounts falling due within one year Creditors (161) (96) (98) Dividend payable - (177) - Net current assets 3,556 1,460 2,267 Total assets less current liabilities 73,134 67,122 64,154 Capital and reserves: Called up share capital 710 710 710 Share premium account 21,573 21,573 21,573 Capital reserve (6,418) (12,298) (15,496) Special reserve 56,908 56,908 56,908 Revenue reserve 361 229 459 Equity shareholders' 73,134 67,122 64,154 funds Net asset value per Ordinary share 102.97p 94.51p 90.33p CONSOLIDATED STATEMENT OF CASHFLOWS 1st July to 1st July to 31st December 2004 31st December 2003 ‚£'000 ‚£'000 Net cash outflow from operating (253) (99)activities Servicing of finance Interest paid - (6) Taxation Taxation paid - (21) Capital expenditure and financial investment Purchase of investments (6,254) (2,971) Disposal of investments 8,175 2,690 Gains on index futures contracts 136 207 Revaluation of foreign currency (59) (2)balances Net cash inflow/(outflow)from capital expenditure and financial 1,998 (76)investment Equity dividends paid (177) (121) Net cash inflow/(outflow) before 1,568 (323)and after financing Increase/(decrease) in cash 1,568 (323) Returns per shareThe Group net revenue on ordinary activities after taxation amounted to ‚£132,000 (2003: ‚£320,000). The basic revenue return per Ordinary share is basedon this figure and a total of 71,023,695 (2003: 71,023,695) shares, being theweighted average number of Ordinary shares in issue during the period.The capital return per Ordinary share is based on net capital gains for theperiod of ‚£5,880,000 (2003: ‚£8,698,000) and on 71,023,695 (2003: 71,023,695)shares, being the weighted average number of Ordinary shares in issue duringthe period.Net asset valueThe net asset value per share of 102.97p (31st December 2003: 90.33p) has beencalculated by reference to net assets of ‚£73,134,000 (31st December 2003: ‚£64,154,000) and 71,023,695 (31st December 2003 71,023,695) Ordinary shares,being the number of shares in issue at the end of the period.The above unaudited financial information for the period ended 31st December2004 which does not constitute statutory accounts as defined in Section 240 ofthe Companies Act 1985 has been prepared on the basis of the accountingpolicies set out in the statutory accounts of the Group for the year ended 30thJune 2004. The auditors have reported on those accounts; their reports wereunqualified and did not contain a statement under section 237(2) or (3) of theCompanies Act 1985. The statutory accounts for the year ended 30th June 2004have been delivered to the Registrar of Companies.Copies of the interim report will be sent to shareholders later this month andwill be available to members of the public from the Registered Office at 23Cathedral Yard, Exeter EX1 1HB.CHAIRMAN'S STATEMENTYour Company's total assets rose 9.0% during the six months to 31st December2004 to ‚£73.1 million. This compares with an 8.2% rise in the FTSE All-ShareIndex. This rise, I am happy to report, took the net asset value per Ordinaryshare to 102.97p and compares with the launch price of 100p in April 2000. TheFTSE All-Share Index over the same period fell by 18.2%. This is a goodperformance and your Directors congratulate your Manager.Net revenue after tax for the period was ‚£132,000. As in previous years, yourDirectors are not recommending the payment of an interim dividend toshareholders.The oil price had a significant influence on markets during the period underreview. Brent Crude rose from $33.45 to $51.38 at its October peak on fearsthat increased Saudi Arabian terrorism might affect the security of supply at atime of increasing demand. Such price changes were mirrored in equity prices,with shares falling in response to oil price rises and strengthening when theoil price stabilised or fell.There was, however, a shift in sentiment in November and December, with sharesbreaking out of their trading range. There were three reasons for this. The oilprice fell sharply, George Bush was convincingly re-elected and confidenceabout economic growth prospects increased. Third quarter US GDP growth was 4.0%while third quarter UK GDP growth was 3.1%.The US Federal Reserve began to tighten monetary policy in June and liftedinterest rates in a "measured" sequence of quarter point rises to 2.25%. TheBank of England raised base rates by a quarter point in August to 4.75% butleft them on hold for the rest of the period while the European Central Bankrepo rate remained at 2%.During the period under review, your Company sold its holdings in CrosbyCapital, EMI, ITV and Jarvis and took advantage of the winding up of JupiterSplit Trust to sell its shares at net asset value. The proceeds were reinvestedin four New Star funds, the Hidden Value Fund, the UK Special Situations Fund,the UK Leaders Hedge Fund and the Financials Hedge Fund.As a result, your Company ended the period with 60% of its invested assets inretail funds, 25% in hedge funds and the remaining 15% in its holding in NewStar Asset Management Group, direct equities, investment trust shares and fixedincome securities.Economic growth is expected to accelerate in early 2005 although tighter USmonetary and fiscal policy may produce a growth slowdown later in the year. Themomentum of corporate profits growth is likely to slow, with margins underthreat from rising unit labour costs. Analysts expect greater profits growth inenergy and industrial materials but are more pessimistic about non-cyclicalconsumer areas and information technology.Economic surveys show strong price-raising intentions from businesses butmoderate Group of Seven money supply growth figures suggest inflationarypressures remain modest. The Fed is likely to continue its gradual programme oftaking its monetary stance towards neutral but it may pause in the summer if,as expected, economic growth slows. UK base rates may also rise further, withthe economy running at close to capacity and pressures building in the labourmarket.A change in the United Kingdom Listing Authority's Listing Rules, regarding theindependence of the Chairman, means that Mr Duffield can no longer be Chairmanof your Company if your Company is to retain its listing on the London StockExchange. This is because Mr Duffield is also Chairman of New Star AssetManagement, your Company's Investment Manager, and under the new Listing Rules,whilst he is able to be a Director of your Company, he is not able to beChairman. He has, therefore, stood down and your Directors have appointed me asChairman, with effect from today. Mr Duffield has become Deputy Chairman.The unaudited net asset value at 28th February 2005 was 107.97p per Ordinaryshare.J E Craig CBEChairman9 March 2005ENDNEW STAR INVESTMENT TRUST PLC