Australian Opp Inv - Interim Results
January 12 2000 - 7:07AM
UK Regulatory
RNS Number:6490D
Australian Opportunities Investment Trust PLC
12 January 2000
Objective of the Company
The objective of the Company is to provide long term capital appreciation by
investing in a portfolio of listed Australasian securities including New
Zealand, focusing on investment companies, financial services companies and
small industrial companies. In addition, the Company may invest up to 10% of
its assets in special situations worldwide.
Financial highlights
% change
At since
30 November 31 May
1999 1999
Australian All Ordinaries Index 3044.0 +5.38%
Total assets less current
liabilities (A$'000) 46,219 -6.52%
Fully-diluted net asset value per
ordinary share (A$) 2.2848 -6.52%
# Sterling / Australian $
exchange rate 2.5055 -1.38%
Australian All Ordinaries
Index(Sterling adjusted) 1214.9 +3.94%
Total assets less current
liabilities (#'000) 18,447 -7.80%
Fully-diluted net asset value per
ordinary share (pence) 91.19 -7.80%
Middle market share price per
ordinary share (pence) 70.5 -18.97%
Chairman's Statement
During the half year to 30 November 1999 the fully-diluted net asset value per
ordinary share (NAV) fell by 7.8% from 98.9 pence to 91.2 pence, compared to a
rise of 3.9% in the Sterling adjusted Australian All Ordinaries Index. This
disappointing performance was principally due to further prudent writing down
in value of the investment in New Cap Reinsurance, mentioned in my statement
in the Annual Report. During the same period the Australian dollar weakened
slightly against Sterling by 1.4% to A$2.5055. Revenue earnings per share
were a negative 0.5 pence, which included higher interest on borrowings,
compared to positive earnings of 3.3 pence in the comparable period last year,
which included a large special dividend received on shares in one company.
The Australian economy recorded strong growth in the September quarter with
GDP rising 4.5% on the comparable quarter last year. The balance of payments
current account was A$9.3 billion in deficit in the September quarter, which
represents 6% of GDP and is historically high. But it is expected to decline
as rising global economic growth leads to higher commodity prices and export
volumes. Inflation remains subdued at 1.7%, but the pace of economic growth
and declining unemployment lead the Reserve Bank to tighten monetary policy
pre-emptively by lifting official interest rates by 1/4% to 5% in November.
The 10 year bond yield has risen from 6% in May to 6.8% currently.
The Stock Market, as measured by the Australian All Ordinaries Index, rose
5.4% over the period from 2888 to 3044, but it had a temporary dip to 2837 in
September. Although the Small Capitalisation Index slightly out-performed the
All Ordinaries Index over the period, this was attributable to the strength of
technology issues following a world-wide trend; whereas the financial sector,
in which some of the Company's larger holdings are positioned, tended to be
dull. Nevertheless, the Board is confident that the Company's portfolio is
well placed to participate in future growth.
Australian Opportunities Investment Trust PLC
Consolidated Statement of Total Return
Six months to Six months to
30 November 1999 30 November 1998
Unaudited Unaudited
Revenue Capital Total Revenue Capital Total
#' 000 #' 000 #' 000 #' 000 #' 000 #' 000
Gains / (losses)
on investments - (1,557) (1,557) - 3,050 3,050
Exchange differences - 57 57 - - -
Trading loss of
subsidiary (81) - (81) - - -
Income 511 - 511 1,002 - 1,002
Investment management fee (44) - (44) (33) - (33)
Other expenses (189) (4) (193) (168) - (168)
Net return / (deficit)
before finance costs
and taxation 197 (1,504) (1,307) 801 3,050 3,851
Interest payable and
similar charges (228) - (228) (134) - (134)
Return / (deficit) on
ordinary activities
before tax (31) (1,504) (1,535) 667 3,050 3,717
Tax on ordinary
activities (33) - (33) (206) - (206)
Return / (deficit) on ordinary
activities after tax
for the period (64) (1,504) (1,568) 461 3,050 3,511
Transfer to /
(from) reserves (64) (1,504) (1,568) 461 3,050 3,511
Return per ordinary
share (pence):
Basic (0.46) (10.74) (11.20) 3.29 21.78 25.07
Diluted - - - 2.81 15.08 17.89
The revenue column of this statement is the consolidated profit and loss
account of the Group.
Basic returns
The calculation of the basic consolidated revenue return per ordinary share of
25 pence each is based on net revenue deficit on ordinary activities after
taxation of #(64,000) for the six months ended 30 November 1999 (1998: surplus
#461,000) divided by 14,007,420 (1998: 14,005,594) being the weighted average
number of ordinary shares in issue during the period.
The calculation of the basic consolidated capital return per ordinary share of
25 pence each is based on net capital deficit of #(1,504,000) for the six
months ended 30 November 1999 (1998: surplus #3,050,000) divided by 14,007,420
(1998: 14,005,594) being the weighted average number of ordinary shares in
issue during the period.
Diluted returns
There is no dilution effect on basic consolidated revenue or capital returns
per ordinary share of 25p each for the six months ended 30 November 1999.
The diluted returns per ordinary share of 25p each for the six months ended 30
November 1998 have been calculated on the assumption that the Convertible Loan
Stock 2007 was fully converted on the first day of that financial period
giving a weighted average of 20,229,507 shares and based on net revenue on
ordinary activities after taxation of #569,000 and net capital profit of
#3,050,000.
Consolidated Balance Sheet
30 November 31 May
1999 1999
Unaudited Audited
#' 000 #' 000
Investments 21,560 21,029
Net current liabilities (3,113) (1,021)
Convertible Loan Stock 2007 (6,096) (6,090)
12,351 13,918
Financed by:
Share capital 3,502 3,502
Reserves 8,849 10,416
12,351 13,918
Australian $ - exchange rate A$2.5055 A$2.4713
Notes:
1.The financial information for the year ended 31 May 1999 included in this
half-year report has been taken from the Company's full accounts, which for
the year to 31 May 1999 carry an unqualified audit report and did not include
statements under section 237(2) or (3) of the Companies Act 1985 and which
have been filed with the Registrar of Companies.
2.The financial statements for the period to 30 November 1999 have been
prepared on a basis consistent with the accounting policies adopted by the
Company in its statutory accounts for the year ended 31 May 1999.
3.The Statement of Total Return for the six months to 30 November 1999 and 30
November 1998 have been prepared in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies"
which have been adopted by the Company.
4.The Statement of Total Return includes the results of the Company and its
subsidiary, and together with the Balance Sheet at 30 November 1999, are
unaudited and do not constitute full accounts within the meaning of the
Companies Act 1985.
5.The Interim report will be sent to shareholders shortly.
END
IR SFMFFESSSEDF
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