Interim Results
November 06 2003 - 1:01PM
UK Regulatory
RNS Number:7985R
Aberdeen New Thai Inv Trust PLC
06 November 2003
ABERDEEN NEW THAI INVESTMENT TRUST PLC
PRELIMINARY ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS
for the six months ended 31 August 2003
Chairman's Statement
Background
I am happy to report that the Company delivered strong returns in the period
under review, despite the uncertainty in the external environment caused by the
Iraq war and the outbreak of SARS. During the six months to 31 August 2003, our
net asset value rose by 60.75% compared to a 54.31% rise in the benchmark Stock
Exchange of Thailand Index, adjusted for currency. As is our normal practice we
will declare a single dividend at the end of our financial year.
Economic Overview
Thailand's economic performance was impressive over the period. Growth was
driven by a combination of rising consumer confidence, firmer commodity prices,
falling interest rates and headline investments: for example, Ford and Toyota
are among those who have chosen Thailand as a regional auto production centre,
and recently raised capital spending. The upturn has been supported by strong
growth in exports and buoyant intra-regional trade, particularly with China.
In addition, the government's expansionary policies, aimed at enriching lower
income households, have borne fruit, as have market supportive announcements
such as the launch of the Vayupak fund and further exchange rate liberalisation.
Meanwhile, improved tax revenues and a strict control over government
expenditures have helped repair public finances.
Your Company's investments posted a generally encouraging set of corporate
results. Shopping mall developer, Central Pattana, saw its earnings rise on
improving rentals, Goodyear (Thailand) benefited from improving sales growth and
margins while Hana Microelectronics reported a strong rise in earnings due to
good performance in its chip division. Tisco Finance saw its profits increase on
the back of strong growth in its hire purchase portfolio and fee income while
Regional Container Lines was supported by rising freight rates.
However, there are caveats. For one, the banks have failed to impress us. While
consumer lending has shown marginal improvement, competition remains intense and
net interest margins have been negligible. In addition, non-performing loans
continue to be high at around the 20-30% level. As a result we have no exposure
to this sector, given the difficulty in gauging the "true" value of the non
performing loans and the overhang of bad debt at a time when government-led
banks are being urged to grant additional credit (and crowd out competitors).
Outlook for Markets and the Company
Thailand is more resilient now than it ever was toward external shocks. The
better-run companies have learnt a harsh lesson from the Asian crisis. They now
stick to their core business and return surplus cash to shareholders.
Consequently, dividend yields provide support. The real impetus, however, will
be when investment spending returns. There are signs of that already. For
instance, Thailand is a popular option for multi-nationals that want to
diversify their exposure to China. However, what really appeals to us is the
quality and reasonably priced valuations of Thai companies, especially in the
small- to mid-cap arena.
Alan Henderson
Chairman
6 November 2003
Statement of Total
Return (unaudited)
--------------------------------------------------------------------------------
Six months ended Six months ended
31 August 2003 31 August 2002
----------------------------------------------------------
Revenue Capital Total Revenue Capital Total
#'000 #'000 #'000 #'000 #'000 #'000
--------------------------------------------------------------------------------
Gains on - 7,206 7,206 - 716 716
investments
Income 579 - 579 554 - 554
Investment management (78) - (78) (62) - (62)
fee
Other expenses (82) - (82) (123) - (123)
Exchange gains/ - 3 3 - (1) (1)
(losses) ----------------------------------------------------------
Net return before
finance costs and
taxation 419 7,209 7,628 369 715 1,084
Interest payable and (23) - (23) (2) - (2)
similar charges ----------------------------------------------------------
Return on ordinary
activities before
taxation 396 7,209 7,605 367 715 1,082
Taxation on ordinary (111) - (111) (114) - (114)
activities ----------------------------------------------------------
Transfer to 285 7,209 7,494 253 715 968
reserves ==========================================================
Return per Ordinary 1.57 39.84 41.41 1.40 3.95 5.35
share (pence) ==========================================================
The revenue column of this statement represents the revenue account of the
Company.
The statement of total return is presented in accordance with the Statement of
Recommended
Practice for 'Financial Statements of Investment Trust Companies'.
All revenue and capital items are derived from continuing operations.
No operations were acquired or discontinued during the period.
Balance Sheet
--------------------------------------------------------------------------------
At At At
31 August 31 August 28 February
2003 2002 2003
(unaudited) (unaudited) (audited)
----------------------------------------------------------
#'000 #'000 #'000
--------------------------------------------------------------------------------
Fixed assets
Listed investments 20,783 13,199 13,422
--------------------------------------------------------------------------------
Current assets
Debtors 29 44 110
Cash at bank and in hand 322 338 239
--------------------------------------------------------------------------------
351 382 349
--------------------------------------------------------------------------------
Creditors: amounts falling due
within one year
Bank loans and overdrafts (984) (993) (984)
Other creditors (318) (344) (435)
--------------------------------------------------------------------------------
(1,302) (1,337) (1,419)
--------------------------------------------------------------------------------
Net current liabilities (951) (955) (1,070)
--------------------------------------------------------------------------------
Total assets less current 19,832 12,244 12,352
liabilities
Provision for liabilities (4) (3) (18)
and charges
--------------------------------------------------------------------------------
Net assets 19,828 12,241 12,334
================================================================================
Capital and reserves
Called-up share capital 4,524 4,524 4,524
Share premium account 13,058 13,058 13,058
Other reserves:
Capital redemption reserve 106 106 106
Capital reserve - realised (3,632) (3,340) (3,601)
Capital reserve - 4,764 (2,982) (2,476)
unrealised
Revenue reserve 1,008 875 723
--------------------------------------------------------------------------------
Shareholders' funds 19,828 12,241 12,334
================================================================================
Net asset value per Ordinary 109.57 67.65 68.16
share (pence)
================================================================================
Cash Flow Statement (unaudited)
--------------------------------------------------------------------------------
Six months Six months
ended ended
31 August 2003 31 August 2002
-------------------------------------------
#'000 #'000
--------------------------------------------------------------------------------
Net cash inflow from operating 441 274
activities
Net cash outflow from servicing of (24) -
finance
Net cash outflow from financial (48) (1,185)
investment
Equity dividends paid (289) (181)
--------------------------------------------------------------------------------
Net cash inflow/(outflow) before 80 (1,092)
financing
Financing
Drawdown of loans - 997
--------------------------------------------------------------------------------
Increase/(decrease) in cash 80 (95)
================================================================================
Reconciliation of operating revenue to
net cash inflow from operating
activities
Net revenue before finance costs and 419 369
taxation
Decrease/(increase) in accrued income 64 (10)
Decrease/(increase) in other debtors 5 (25)
Decrease in creditors (2) (14)
Overseas withholding tax suffered (45) (46)
--------------------------------------------------------------------------------
Net cash inflow from operating 441 274
activities
================================================================================
Reconciliation of net cash flow to
movements in net debt
Increase/(decrease) in cash as above 80 (95)
Cash inflow from drawdown of loans - (997)
--------------------------------------------------------------------------------
Change in net funds/(debt) resulting 80 (1,092)
from cash flows
Exchange movements 3 (1)
--------------------------------------------------------------------------------
Movement in net funds/(debt) in the 83 (1,093)
period
Opening net (debt)/funds at 1 March (745) 438
--------------------------------------------------------------------------------
Closing net debt at 31 August (662) (655)
================================================================================
Represented by:
Cash at bank 322 338
Debt falling due within one year (984) (993)
--------------------------------------------------------------------------------
(662) (655)
================================================================================
Notes:
1. The breakdown of income for the periods to 31 August 2003 and 31 August 2002
was as follows:
31 August 31 August
2003 2002
#'000 #'000
Income from investments
Overseas dividends 577 551
Other income
Deposit interest 2 3
-------- --------
Total income 579 554
-------- --------
2. The revenue return per Ordinary share is based on net revenue after taxation
of #285,000 (2002 - #253,000) and on 18,095,420 (2002 - 18,095,420) Ordinary
shares, being the weighted average number of Ordinary shares in issue throughout
the period.
The capital return per Ordinary share is based on a net capital return of
#7,209,000 (2002 - #715,000) and on 18,095,420 (2002 - 18,095,420) Ordinary
shares, being the weighted average number of Ordinary shares in issue throughout
the period.
3. The net asset value per Ordinary share is based on net Shareholders' funds at
the period end, and on 18,095,420 (31 August 2002 and 28 February 2003 -
18,095,420) Ordinary shares, being the number of Ordinary shares in issue at the
period end.
4. In accordance with stated policy no interim dividend has been declared for
the period (2002 - nil).
5. The financial statements for the six months ended 31 August 2003 and 31
August 2002 comprises non-statutory accounts within the meaning of Section 240
of the Companies Act 1985. The financial information for the year ended 28
February 2003 has been extracted from the published accounts that have been
delivered to the Registrar of Companies and on which the report of the auditors
was unqualified. The interim accounts have been prepared on the same basis as
the annual accounts.
Aberdeen Asset Management PLC
Secretaries
6 November 2003
Independent Review Report by KPMG Audit Plc to
Aberdeen New Thai Investment Trust PLC
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 31 August 2003 which comprises the Statement of Total
Return, Balance Sheet, Cash Flow Statement and Notes to the Accounts. We have
read the other information contained in the Interim Report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the Company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Company for
our review work, for this report, or for the conclusions we have reached.
Directors' Responsibilities
The Interim Report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the Interim Report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are to be disclosed.
Review Work Performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
Review Conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 August 2003.
KPMG Audit Plc
Chartered Accountants
Aberdeen
6 November 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
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