Svm Uk Emerg Regulatory News (SVM)

27 May 2005 15:12

DRAFT 3PRESS RELEASE27 May 2005 SVM UK EMERGING FUND PLC RESULTS FOR THE YEAR ENDED 31 MARCH 2005 Key Points * Following the change in investment objective the Fund's net asset value has risen 15.1% in the six month period to end March 2005, compared to a gain of 18.7% for the AIM Index * Net asset value per ordinary share is 37.02p * Portfolio now has a 66% exposure to AIM listed companies, reflecting the new investment stance * Revised strategy has opened up a broader range of investment potentials in what remains an attractive market for UK emerging companies EndsFor further information, please contact:David Stevenson SVM Asset Management 0131 226 6699Roland Cross Broadgate Marketing 020 7726 6111 SVM UK EMERGING FUND PLC RESULTS FOR THE YEAR ENDED 31 MARCH 2005 Commenting on the results, Chairman, Peter Dicks, said:The last year saw several changes to the Fund. At the Annual General Meeting on3 September 2004, shareholders voted in favour of a new investment objective,together with a new name. The Managers are now able to hold investments inunquoted, OFEX and Alternative Investment Market (AIM) companies and may alsoinvest up to 20% of the Fund in other securities and instruments. The Fund'sbenchmark was also changed to the AIM Index, reflecting the new focus of theportfolio.These changes were introduced in time for the second half of the year andtherefore the Fund's overall performance should be considered in that light.For the six month period to end March 2005, the Fund's net asset value hasrisen 15.1% to 37.02p compared to a gain of 18.7% for the AIM Index. Inparticular, in the quarter to 31 March 2005, the Fund rose 10.9% against abenchmark gain of 8.4%. Over the full year, the net asset value rose 2.7%.The Fund's second half performance was achieved despite a substantialwrite-down in the carrying value of unquoted investments, which now account foronly 11% of the portfolio. The core of the Fund comprises 66% in AIM companies,with 23% in OFEX companies. This also represents a significant change from ayear ago and reflects the new investment stance.New investments made since the AGM have been key contributors to performance.However, a number of the Fund's original holdings reported trading progressduring the year and these have been re-rated in a more positive stockmarketenvironment for emerging companies. The relative maturity of these originalholdings is also reflected in the fact that six achieved AIM promotions duringthe year, whilst another was taken over.The revised strategy has opened up a much broader range of potentialinvestments to the Managers and the Board is encouraged by the progress whichhas been achieved to date. Clearly, much has still to be done to redress theFund's longer term losses, but it now has greater flexibility to exploitopportunities available to it, in what remains an attractive market for UKemerging companies.As required by the Company's Articles of Association, at the forthcoming AnnualGeneral Meeting, an ordinary resolution will be proposed that the Companyshould continue for a further five year period.Peter DicksChairman27 May 2005Summarised Statement of Total Return Year to 31 March 2005 Year to 31 March 2004 (unaudited) (audited) Revenue Capital Total Revenue Capital Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Losses on sale of - (317) (317) - (305) (305)investments Movement in - 435 435 - (657) (657)unrealised depreciation ------- ------- ------- ------- ------- ------- Gains /(losses) - 118 118 - (962) (962)on investments Income 2 - 2 3 - 3 Investment - - - - (22) (22)management fees Other expenses (66) - (66) (89) - (89) ------- ------- ------- ------- ------- ------- Return before (64) 118 54 (86) (984) (1,070)interest and taxation Bank overdraft (1) - (1) - - -interest ------- ------- ------- ------- ------- ------- Transfer to / (65) 118 53 (86) (984) (1,070)(from) reserves ------ ------- ------- ------- -------- ------- Return per (1.19p) 2.16p 0.97p (1.58p) (18.02p) (19.60p)ordinary share As at As at 31 Mar 2005 31 Mar 2004 (unaudited) (audited) ‚£'000 ‚£'000 Balance Sheet Investments 2,133 1,944 Net current (liabilities) / assets (112) 24 ------- ------- Ordinary shareholders' funds 2,021 1,968 ------- ------- Net asset value per ordinary share 37.02p 36.04p Summarised Cash Flow Statement Net cash outflow from operating (68) (92)activities Returns on investment and servicing (1) -of finance Capital expenditure and financial (103) ( 210)investment ------- ------- Decrease in cash (172) (302) ------- -------Notes1. The results reflect the adoption in the Accounts of the 2003 Statement ofRecommended Practice (SORP) issued by the Association of Investment TrustCompanies.2. Returns per Ordinary Share are based on 5,460,000 shares in issue during theyear (31 March 2004 - same). The number of shares in issue at 31 March 2005 was5,460,000. (31 March 2004- same).3. Due to the size of the company, the Investment Managers waived their feesfor the year to 31 March 2005.4. The above figures do not constitute full group accounts in terms of Section240 of the Companies Act 1985. The accounts for the year to 31 March 2004, onwhich the auditors issued an unqualified report, have been lodged with theRegistrar of Companies. The annual report and accounts will be mailed toshareholders and will be lodged with the Registrar of Companies towards the endof May 2005. Copies will be available for inspection at 7 Castle Street,Edinburgh EH2 3AH, the registered office of the Company.ENDSVM UK EMERGING FUND PLC