RNS Number:6616U
Asset Management Investment Co.PLC
27 January 2004
For immediate release Tuesday 27 January 2004
ASSET MANAGEMENT INVESTMENT COMPANY PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2003
Asset Management Investment Company PLC ('AMIC'), the only quoted United Kingdom
investment company specialising in investment in the global asset management
industry, announces its results for the year ended 30 September 2003.
Following a lengthy period of substantial weakening in markets and difficult
operating conditions for the asset management industry a degree of confidence
has returned since last spring. There has been a recovery in the market prices
of quoted companies in the sector from the lows recorded in 2003 and signs that
companies are once again looking ahead positively and considering ways and means
of growing their businesses in this new, more confident, environment.
As predicted in my last statement these difficult market conditions have been
reflected via prudent re-valuations in accordance with our investment valuation
methodology. Many of the companies in our portfolio experienced difficult
operating conditions during the downturn, as falling markets affected revenues
and cash flows. However, I am happy to say that all companies responded
positively by examining the cost structures of their businesses and where
appropriate making the necessary adjustments. In several cases it proved
necessary for us to arrange a financial restructuring of investments, exchanging
revenue for greater shares in the equity, which preserved value but at the
expense of revenue. As the revenue performance of the companies improves and
the pressures on their cash flows reduce, our revenue from them will gradually
be restored.
Your Company is pleased to announce that on 15 January, it sold its entire 76%
shareholding in P.J. Doherty and Associates Co. Ltd (PJD), an investment
management firm based in Ottawa, Canada which provides investment services to
high net worth individuals and institutions. AMIC's holding, along with the
remaining 24% of shareholdings, was acquired by Canadian based AGF Management
Limited for a consideration of CA$11,700,000. The consideration is
approximately equal to the carrying value of the investment.
During the year total assets less current liabilities decreased by 17.40% to
#40,054,000 (2002: #48,490,000). The net asset value per ordinary share fell by
41.45% to 68.57p (2002: 117.12p). This compared with a rise in the FTSE-100
Index of 6.8% and in the Dow Jones Industrial Average of 16.8% over the same
period. Directors also took the decision to repay US$1,500,000 of existing bank
borrowings from Bank of Scotland.
As indicated in my statement in the Annual Report for 2002, difficult operating
conditions have resulted in lower revenue receipts from certain of the companies
in which AMIC is invested. This factor, together with the restructuring of
investments referred to above and the absence of several non-recurring revenue
items received in the year to 30 September 2002, has resulted in the revenue
received in the current year being lower than in the previous year. I also
advised that the previous level of dividend was not sustainable and subsequently
your Directors issued a forecast that the dividend for the financial year to 30
September 2003 would not be less than 4p net per share.
Revenue profit before tax and minority interests for the year is #2,109,000
(2002: #3,490,000), a decrease of 39.57%. Profit after taxation and minority
interests decreased by 44.41% to #1,273,000 (2002: #2,290,283) and revenue
return per ordinary share decreased by 49.37% to 6.01p (2002: 11.87p). Your
Board is recommending payment of a final dividend of 3.0p net per share (2002:
9.0p net per share), which together with the interim dividend of 1.0p net per
share (2002: 7.0p net per share) paid on 3 September 2003 will make a total
dividend of 4.0p net per share (2002: 16.0p net per share). The final dividend
will be proposed at the Annual General Meeting on 18 March 2004 for payment on
22 March 2004 to shareholders on the register at the close of business on 11
February 2004.
Your Company is largely fully invested and management is therefore concentrating
on working with the investee companies in the interests of maximising
shareholder value. As a shareholder AMIC seeks to play a pro-active, supportive
and responsible role and is always alert for opportunities to assist investee
companies and in turn to add value to our holdings.
Your Board is mindful of the fact that the zero dividend preference shares are
due to be redeemed in 2006. Meanwhile your Board and Management will continue to
concentrate on the prudent management of your Company's resources and to work
closely with the companies in the portfolio. We are confident that the
portfolio is well positioned to add value for shareholders.
David Thomson
27 January 2004
Chairman
CONSOLIDATED STATEMENT OF TOTAL RETURN
YEAR ENDED 30 SEPTEMBER 2003
(incorporating the revenue account*)
2003 2002
Revenue Capital Total Revenue Capital Total
Notes #'000 #'000 #'000 #'000 #'000 #'000
Return on investments - (7,687) (7,687) - (1,961) (1,961)
Income 5,234 - 5,234 5,596 - 5,596
Administration expenses (3,076) (1,638) (4,714) (1,993) (1,403) (3,396)
Net return before finance costs and 2,158 (9,325) (7,167) 3,603 (3,364) 239
taxation
Loss on disposal of subsidiary - - - (58) (31) (89)
Interest payable (93) (281) (374) (118) (355) (473)
Interest receivable 44 - 44 63 - 63
Return on ordinary activities 2,109 (9,606) (7,497) 3,490 (3,750) (260)
before taxation
Taxation on ordinary activities (745) 412 (333) (1,117) 474 (643)
Return on ordinary activities after 1,364 (9,194) (7,830) 2,373 (3,276) (903)
taxation
Minority interests (91) - (91) (83) 32 (51)
Appropriation in respect of zero - (977) (977) - (880) (880)
dividend preference shares
Return attributable to equity 1,273 (10,171) (8,898) 2,290 (4,124) (1,834)
shareholders
Dividend in respect of equity 1 (844) - (844) (3,081) - (3,081)
shares
Transfer from reserves 429 (10,171) (9,742) (791) (4,124) (4,915)
Return per ordinary share (basic) 2 6.01p (48.02)p (42.01)p 11.87p (21.37)p (9.50)p
Return per ordinary share (diluted) 3 6.01p (48.02)p (42.01)p 11.87p (21.37)p (9.50)p
Return per zero dividend preference 4 - 12.03p 12.03p - 10.84p 10.84p
share
*The revenue column of this statement is the profit and loss account of the
group
CONSOLIDATED BALANCE SHEET
AT 30 SEPTEMBER 2003
2003 2002
Notes #'000 #'000 #'000 #'000
Intangible fixed assets 4,685 5,010
Tangible fixed assets 122 125
Fixed asset investments
Listed investments 3,200 7,120
Unlisted investments 30,239 37,045
33,439 44,165
38,246 49,300
Current assets 145 322
Investments
Debtors 1,266 1,878
Cash and bank 1,507 248
2,918 2,448
Current Liabilities
Creditors: Amounts falling due within one (1,110) (3,258)
year
Net current assets/(liabilities) 1,808 (810)
Total assets less current liabilities 40,054 48,490
Creditors: Amounts falling due after one (12,403) (13,662)
year
27,651 34,828
Capital and reserves
Called up share capital 13,516 13,026
Share premium account 23,588 22,520
Capital reserve- realised (8,336) (2,691)
Capital reserve- unrealised (5,537) (1,038)
Revenue reserve 218 (211)
Zero dividend appropriation reserve 4,107 3,157
Total shareholders' funds 27,556 34,763
Minority interests 95 65
27,651 34,828
Total shareholders funds are attributable
to:
Equity shareholders 14,801 22,985
Non-equity shareholders 12,755 11,778
27,556 34,763
Net asset value per ordinary share 5 68.57p 117.12p
(basic)
Net asset value per ordinary share
(diluted) 5 68.57p 117.12p
Net asset value per zero dividend
preference share 5 157.08p 145.00p
CONSOLIDATED CASHFLOW STATEMENT
YEAR ENDED 30 SEPTEMBER 2003
2003 2002
#'000 #'000 #'000 #'000
Net cashflow from operating activities 1,357 588
Returns on investment and servicing of finance
Interest paid (374) (379)
Interest received 44 63
Dividends paid to minority interests (61) -
Net cashflow from returns on investment and (391) (316)
servicing of finance
Taxation paid (442) (502)
Capital expenditure and financial investment
Purchase of investments (2,688) (28,213)
Purchase of own shares (42) (28)
Sale of investments 7,152 28,115
Purchase of tangible fixed assets (48) (39)
Net cashflow from capital expenditure and financial 4,374 (165)
investment
Sale of subsidiary - 88
Acquisition of subsidiaries - (6,317)
Cash acquired with subsidiaries - 397
Net cashflow from sale and acquisitions - (5,832)
Equity dividends paid (1,967) (2,843)
Management of liquid resources
Short term deposits (695) 217
Purchase of current asset investments (1,254) -
Sale of current asset investments 1,314 923
Net cashflow from management of liquid resources (635) 1,140
Net cashflow before financing 2,296 (7,930)
Financing
New Loan - 4,916
Repayment of loan (983) -
Issue of ordinary share capital - 226
Premium on issue of ordinary share capital - 660
Net cashflow from financing (983) 5,802
Change in cash during the year 1,313 (2,128)
Notes
1. Dividend
A final dividend of 3p per share has been declared, and will be paid on 22 March
2004 to the shareholders on the register at close of business on 11 February
2004.
2. Basic return per ordinary share
Basic return per ordinary share for the year ended 30 September 2003 is
calculated on the basis of the net revenue on ordinary activities after tax and
minority interest of #1,273,000 (2002: #2,290,283) divided by 21,177,207 (2002:
19,293,021), being the weighted average number of ordinary shares of 25p each in
issue during the year, stated in accordance with Financial Reporting Standard No
14.
Basic capital return per ordinary share for the year ended 30 September 2003 is
based on net capital losses of #10,171,000 (2002: #4,124,255) divided by
21,177,207 (2002: 19,293,021) being the weighted average number of ordinary
shares of 25p each in issue during the year.
3. Diluted return per ordinary share
Diluted revenue and capital returns per ordinary share for the year ended 30
September 2003 are calculated on 21,177,207 (2002: 19,296,521) shares.
4. Return per zero dividend preference share
Return per zero dividend preference share for the year ended 30 September 2003
is calculated on the appropriation in respect of the zero dividend preference
shares of #977,000 (2002: #879,600) divided by 8,120,000 (2002: 8,120,000),
being the weighted average number of zero dividend preference shares of #1 each
in issue during the year, stated in accordance with Financial Reporting Standard
No 14.
5. Net asset value
The basic net asset value per ordinary share at 30 September 2003 is calculated
on the basis of the net assets attributable to equity shareholders divided by
21,585,426 (2002: 19,624,899) being the number of ordinary shares in issue at
that date.
The diluted net asset value per ordinary share at 30 September 2003 is
calculated on the basis of net assets attributable to equity shareholders
divided by the number of shares that would be in issue following the exercise of
options.
The net asset value per zero dividend preference share at 30 September 2003 is
calculated on the basis of the net assets attributable to zero dividend
preference shareholders, less issue costs, divided by the number of zero
dividend preference shares in issue at that date.
6. Report and accounts
The foregoing financial information does not constitute accounts within the
meaning of section 240 of the Companies Act 1985. Copies of the report and
accounts will be sent to shareholders in due course and will be available from
the Secretary at the Company's registered office, 32 Ludgate Hill, London, EC4M
7DR.
For further information please contact:
George Robb
Managing Director and Chief Investment Officer
Tel: 020 7329 1290
E-mail: grobb@amicplc.com
Alessio Corbo
Company Secretary
Tel: 020 7329 1292
E-mail: acorbo@amicplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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