Interim Results
March 27 2003 - 8:27AM
UK Regulatory
RNS Number:2902J
Progressive Geared Income Trust PLC
27 March 2003
Progressive Geared Income Trust plc
Interim results for six months to 31 December 2002
KEY FEATURES
Investment objective
The Company's investment objective is to provide shareholders with a high level
of income payable quarterly, together with the potential for income and capital
growth. To achieve this, the portfolio is invested in a combination of sterling
denominated fixed interest securities and various classes of higher yielding
securities (predominantly ordinary and income shares of split capital investment
trusts and other closed-end funds).
Performance
At 31 Dec At 31 Dec At 30 Jun
2002 2001 2002
Net asset value ("NAV") per share 13.91p 46.50p 21.05p
Share price 10.00p 65.00p 21.50p
CHAIRMAN'S STATEMENT
The six months to 31 December 2002 proved to be another difficult period for
equity markets and this is likely to continue to be the case at least in the
short term.
During the first three months of the interim period a number of the Company's
holdings in split capital funds, having already suffered severe falls, could not
withstand further downward pressure on the value of their underlying
investments. This resulted in many dividend reductions and suspensions. In
more severe cases, Stock Exchange listings were suspended leaving little chance
of obtaining any return from the companies concerned.
As stated in the last annual report, the entire bank loan was repaid in the
first half of 2002. Market conditions have continued to worsen since the loan
repayment, highlighting the importance and prudence of removing the Company's
gearing at that time.
The Company's net asset value per share at the end of the interim period was
13.91p, as opposed to 21.05p at 30 June 2002. The majority of the decrease
occurred early in the interim period for the reasons stated above, whilst the
net asset value remained relatively stable over the last three months of the
calendar year 2002.
The Company has declared two interim dividends so far in this financial year,
both at the rate of 0.5p per share. It is the Board's intention that the
Company will continue to pay as much in the way of dividend to its shareholders
as it can prudently afford.
The next few months are likely to prove difficult for global equity markets,
with the uncertainty from the geopolitical situation in the Middle East not
helping the position. The Board continues to actively explore the opportunities
for the Company going forward.
Robert Clinton
27 March 2003
STATEMENT OF TOTAL RETURN
(incorporating the profit and loss account*)
For the 6 months ended 31 December 2002
6 months 6 months to 6 months to 6 months to 6 months to 6 months to
to 31 Dec 31 Dec 2002 31 Dec 2002 31 Dec 2001 31Dec 2001 31Dec 2001
2002
#'000 #'000 #'000 #'000 #'000 #'000
Revenue Capital Total Revenue Capital Total
Losses on investments
- realised - (1,693) (1,693) - (2,502) (2,502)
- unrealised - (1,474) (1,474) - (9,622) (9,622)
Income 512 - 512 2,885 - 2,885
Investment management fee (17) (17) (34) (139) (139) (278)
Other expenses (74) - (74) (113) - (113)
Return on ordinary
activities before finance
costs and taxation 421 (3,184) (2,763) 2,663 (12,263) (9,630)
Interest payable and similar
charges - bank loan interest - - - (538) (538) (1,076)
Return on ordinary
activities before taxation 421 (3,184) (2,763) 2,095 (12,801) (10,706)
Taxation - - - - - -
Return on ordinary
activities after taxation 421 (3,184) (2,763) 2,095 (12,801) (10,706)
Ordinary dividends payable (450) - (450) (2,025) - (2,025)
Transfer to reserves (29) (3,184) (3,213) 70 (12,801) (12,731)
Return per ordinary share 0.94p (7.08)p (6.14)p 4.66p (28.45)p (23.79)p
*The revenue column of this statement is the profit and loss account of the Company.
All capital and revenue items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the period.
Return per ordinary share is based on 45,000,000 ordinary shares in issue throughout the period.
SUMMARISED BALANCE SHEET
At 31 At 31 December At 30
December
2002 2001 June
#'000 #,000 2002
#,000
Fixed assets - Investments at market value 5,794 45,612 7,990
Current assets 729 6,838 1,889
Current liabilities (263) (1,524) (406)
Net current assets 466 5,314 1,483
Bank loan - (30,000) -
Total net assets 6,260 20,926 9,473
Share capital 2,250 2,250 2,250
Share premium 41,250 41,250 41,250
Capital reserves (37,318) (23,046) (34,134)
Revenue reserve 78 472 107
Equity shareholders' funds 6,260 20,926 9,473
Net asset value per ordinary share 13.91p 46.50p 21.05p
Number of ordinary shares in issue 45,000,000 45,000,000 45,000,000
CASH FLOW STATEMENT
6 months to 6 months to
31 December 31 December
2002 2001
#'000 #'000
Operating activities
Net cash inflow from operating activities 383 2,568
Servicing of finance
Interest paid on unsecured loan - (1,068)
Equity dividends paid (563) (2,025)
Net cash outflow from servicing of finance (563) (3,093)
Taxation
Repayment 256 -
Financial investment
Payments to acquire fixed asset investments (2,981) (23,146)
Receipts on disposal of fixed asset investments 2,013 27,973
Net cash inflow / (outflow) from investing activities (968) 4,827
(Decrease) / Increase in cash (892) 4,302
NOTES
During the six months ended 31 December 2002 a first interim dividend of 0.5p
per share for the year ending 30 June 2003 was paid on 16 December 2002 and a
second interim dividend of 0.5p per share was declared and subsequently paid on
25 February 2003.
The Company has given notice to the Registrar of Companies of an intention to
operate as an investment company under Section 266 of the Companies Act 1985.
The Company manages its affairs as an investment trust for taxation purposes
under Section 842 of the Income and Corporation Taxes Act 1988.
These financial statements are not the Company's statutory accounts for the
purposes of Section 240 of the Companies Act 1985. They are unaudited. The
interim report will be sent to shareholders and copies will be made available to
the public at the registered office of the Company.
The Company's statutory accounts for year ended 30 June 2002 received an
unqualified audit report and have been filed with the registrar of companies at
Companies House.
SECRETARY, ADMINISTRATOR &
REGISTERED OFFICE
Cavendish Administration Limited
Crusader House
145-157 St John Street
London EC1V 4RU
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFLVVDIDFIV