Final Results
November 26 2003 - 9:09AM
UK Regulatory
SMALL COMPANIES DIVIDEND TRUST PLC
(formerly BFS Small Companies Dividend Trust PLC)
PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS
Chairman's statement
Results
This report covers the six months to 31 October 2003.
The net asset value per Ordinary share at 31 October was 142.29p, an increase
of 59.1% in the past six months compared to rises of 12.4% in the FTSE
All-Share Index, 34.9% in the FTSE Small Cap Index and 48.7% in the FTSE
Fledgling Index.
A first interim dividend of 2.25p (2002: 2.20p) per Ordinary share was paid in
September 2003. The Board has declared a second interim dividend of 2.25p per
Ordinary share (2002: 2.20p) payable on 31 December 2003 to shareholders on the
register on 5 December 2003, making a total for the half-year of 4.50p per
Ordinary share (2002: 4.40p).
The Company is invested in the ordinary shares of sixty-seven quoted companies
and two unquoted companies. It does not invest in the shares of any investment
trusts.
During this period offers were received for Christian Salvesen, Hercules
Property, Galliford Try and Austin Reed; however, in all of these cases the
offers failed. In respect of Ryland, announced last year, the offer was
successful and the management team eventually acquired the company.
I would like to congratulate David Horner of the Investment Adviser, Chelverton
Asset Management Limited, for the Company winning the `Investment Week' Split
Capital Investment Trust of the Year Award in November 2003 for the second year
running.
Outlook
The net asset value per share has advanced very quickly and we therefore,
anticipate a period of consolidation ahead.
Earnings per share are moving forward and we have reflected this in an
increased second interim dividend.
We have recently increased our bank facility from �7.5m to �10m and have also
taken the opportunity to fix �5m of this facility until 2007, the remainder
being an overdraft facility.
It is encouraging to note, in the last few weeks, the increase of corporate
activity, which should, of course, be of benefit to the company's net asset
value and provides the opportunity to enhance earnings.
Bryan Lenygon, Chairman
25 November 2003
The Directors announce the unaudited statement of consolidated results for the
period
1 May 2003 to 31 October 2003 as follows:
CONSOLIDATED STATEMENT OF TOTAL RETURN
(*incorporating the revenue account)
1 May 2003 to 1 May 2002 to
31 October 2003 31 October 2002
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains/ (losses) on - 9,051 9,051 - (6,012) (6,012)
investments
Dividends and interest 1,226 - 1,226 1,230 - 1,230
Investment management (78) (116) (194) (61) (92) (153)
fee
Investment management - (160) (160) - -
performance fee
Other expenses (113) (5) (118) (113) - (113)
Net return before
finance costs and 1,035 8,770 9,805 1,056 (6,104) (5,048)
taxation
Interest payable (73) (109) (182) (72) (108) (180)
Appropriations in
respect of:
- Zero Dividend - (335) (335) - (310) (310)
Preference shares
- Preference shares - (2) (2) - (2) (2)
Issue costs of Zero
Dividend Preference - (16) (16) - (15) (15)
shares
Return on ordinary
activities
before and after 962 8,308 9,270 984 (6,539) (5,555)
taxation
First interim dividend (355) - (355) (347) - (347)
paid of 2.25p
(2002: 2.20p)
Second interim dividend (354) - (354) (346) - (346)
proposed of 2.25p
(2002: 2.20p)
Transfer to/(from) 253 8,308 8,561 291 (6,539) (6,248)
reserves
Return per: pence pence pence pence pence pence
Ordinary share 6.11 52.75 58.86 6.25 (41.52) (35.27)
Zero Dividend Preference - 5.37 5.37 - 4.97 4.97
share
Preference share - 5.37 5.37 - 4.97 4.97
* The revenue column of this statement is the revenue account of the Group.
CONSOLIDATED BALANCE SHEET
As at As at As at
31 October 30 April 31 October
2003 2003 2002
(unaudited) (audited) (unaudited)
�'000 �'000 �,000
Investments 41,156 30,060 28,899
Current assets
Debtors 301 632 236
Cash at bank 127 309 205
428 941 441
Current liabilities
Creditors 716 899 592
Bank overdraft 4,344 7,491 7,334
5,060 8,390 7,926
Net current liabilities (4,632) (7,449) (7,485)
Total assets less current 36,524 22,611 21,414
liabilities
Creditors - amounts falling due
after
more than one year (13,749) (8,397) (8,062)
Net assets 22,775 14,214 13,352
Share capital and reserves
Share capital 3,938 3,938 3,938
Share premium 11,126 11,126 11,126
Capital reserve 6,847 (1,461) (2,479)
Revenue reserve 864 611 767
Shareholders funds 22,775 14,214 13,352
Total net assets attributable to:
Ordinary shares 22,410 14,088 12,918
Zero Dividend Preference shares 8,816 8,481 8,163
Preference shares 44 42 41
Net asset value per:
Ordinary share 142.29p 89.44p 82.02p
Zero Dividend Preference share 141.06p 135.69p 130.61p
Preference share 141.06p 135.69p 130.61p
CONSOLIDATED STATEMENT OF CASHFLOWS
1 May 2003 to 1 May 2002 to
31 October 2003 31 October 2002
�'000 �'000
Net cash inflow from operating activities 1,135 221
Net cash outflow from servicing of (184) (147)
finance
Taxation recovered - 5
Capital expenditure and financial
investment
Purchase of investments (8,794) (3,168)
Sale of investments 6,698 3,824
Net cash (outflow)/ inflow from capital (2,096) 656
expenditure
and financial investment
Equity dividends paid (890) (866)
Financing
Loan drawdown 5,000 -
Increase/ (decrease) in cash 2,965 (131)
NOTE
1. The above unaudited financial information which does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985 has been
prepared on the basis of the accounting policies set out in the statutory
accounts of the Group for the year ended 30 April 2003, save that the Group has
adopted the 2003 Statement of Recommended Practice regarding the Financial
Statements of Investment Trust Companies. The auditors have reported on those
accounts; their reports were unqualified and did not contain a statement under
section 237 (2) or (3) of the Companies Act 1985. Statutory financial
statements for the year ended 30 April 2003 were delivered to the Registrar.
2. The Directors have declared a second interim dividend of 2.25p (2002: 2.20p)
per Ordinary share, payable on 31 December 2003 to the holders of Ordinary
shares on the Register at 5 December 2003. The total dividend for the year
ended 30 April 2003 amounted to 10p per Ordinary share. Projected forecasts
indicate that the total dividend for the year ending 30 April 2004 should be at
least maintained at this amount.
3. The revenue return per Ordinary share is based on earnings of �962,000
(2002: �984,000) and on 15,750,000 (2002: 15,750,000) Ordinary shares, being
the weighted average number of Ordinary shares in issue during the period.
4. The capital return per Ordinary share is based on net capital gains of �
8,308,000 (2002: losses �6,539,000) and on 15,750,000 (2002: 15,750,000)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the period.
5. An amount of �225,000 (2002: �200,000) has been charged to capital in
respect of management fees and interest in accordance with the Company's
accounting policy.
6. The Company has conducted its affairs so that it satisfies the conditions
for approval as an investment trust company set out in section 842 of the
Income and Corporation Tax Act 1988. It is the intention of the Directors that
the Company continues to meet these conditions.
7. There are 31,260 Preference and 6,250,000 Zero Dividend Preference shares in
issue. They each have an initial capital entitlement of 100p per share, growing
to 184.63p on 30 April 2007. The accrued entitlement as at 31 October 2003
calculated in accordance with the Company's Articles of Association, was
141.06p per Zero Dividend Preference and Preference share (2002: 130.61p). A
total amount of �337,000 (2002: �312,000) has been charged to capital during
the period, in respect of their accrued entitlement.
8. The net assets attributable and the net asset value per share are calculated
in accordance with the Company's Articles of Association, and exclude current
period revenue for the unaudited values at 31 October 2003 and 2002.
Shareholders funds shown in the Balance Sheet are in accordance with FRS4.
9. The Group's funds are invested principally in companies with a market
capitalisation of less than �100 million. The Group's portfolio comprises
companies listed on the official list and companies admitted to trading on AIM.
The Group may also invest up to 5% of its portfolio in unquoted securities.
Whilst the majority of the Group's funds are invested in ordinary shares of
companies, up to 30% may be invested in convertible securities. The Group does
not invest in other investment trusts.
END
