RNS Number:0424K
Conister Trust PLC
22 March 2005



                      Conister Trust PLC Year-end results



               Preliminary results announcement for y/e 31/12/04




Conister Trust preliminary results for year ended 31 December 2004

-     Income up 11% to #7,162,000 (2003: #6,442,000)
-     Profit before tax increased by 46% to #737,000 (2003: #506,000)
-     Final dividend increased to 0.75p per share (2003: 0.7p)
-     Shareholders' funds increased to #10.2 million (2003: #9.7 million)
-     Earnings per share up 26% to 2.45p (2003: 1.95p)






Chairman's Statement

The profit on ordinary activities before tax has grown 46% to #737,000 (2003 :
#506,000). Subject to shareholders' approval, the final dividend will be 0.75p
per share (2003 : 0.7p). Notwithstanding the strong improvement in 2004, we
believe this level of dividend is appropriate given the future uncertainties
facing our businesses and our wish to retain capital to support growth. The
dividend will be paid on 27th May 2005 to shareholders registered at close of
business on 1st April 2005. This will make a total dividend for the year of
1.05p per share (2003 : 1.0p). It is again intended to make a scrip dividend as
an alternative to the final cash dividend (whereby shareholders can choose to
take new shares instead of payment in cash). Shareholders will receive a letter
about this offer shortly.

Operations

Gareth Jones, executive director, reports on our performance during the year.

In summary, there remains strong competition in all business units, especially
so during the latter part of the year. Overall margins were broadly static as a
consequence of more direct business, even though suffering a higher cost of
funds in a rising interest rate environment. The quality of our lending book has
further improved, with the net charge for specific provisions falling from
#281,000 in 2003 to #200,000 in 2004. The higher level of general provisions at
#335,000 (2003 : #153,000) reflects both our policy of strengthening this
provision and the growth in our lending book. Operating expenses have grown 7%.
This increase represents investment in a new IT system, and in additional sales
and support staff.

Business Units

The Manx Department delivered a satisfactory performance, bearing in mind strong
competition across all sectors. We continue to regard this as our primary market
and we remain committed to our Island franchise and maintaining our sizeable
market share. The UK broker introduced business also performed reasonably well
and at the end of the year we established a new post in the UK, recruiting a
head of Sales and Business Development. The Wigan and Huddersfield offices,
which primarily sell direct to small and medium sized businesses, performed
satisfactorily given market conditions of intense price undercutting. Once
again, to some extent we have chosen to decline some business rather than put
assets on to our books which we believe may not be profitable, after taking into
account their risk profile. It is noticeable that each of these business units
found trading conditions tougher in the second half of the year. It is also
noteworthy that we have not relaxed our underwriting criteria in order to chase
volume, only to suffer bad debts later.

Since the year end we have recruited four staff who are specialists in motor
vehicle finance for personnel in the armed services. We regard this as an
excellent opportunity in a niche market and the early signs are encouraging.

The litigation funding book has grown to more than #10 million and forms a
sizeable business in its own right. However, we have significantly curtailed the
rate of growth of this lending compared to our previous plans in view of
unexpected constraints in the insurance market. All litigation funding is backed
by an insurance policy and we have proactively chosen to limit the amount of
business we will put with smaller, more recently established insurance
companies. Unfortunately and unexpectedly some of the larger, strongly
capitalised insurers have withdrawn from writing this sort of business as a
result of losses they have sustained from previous relationships unconnected
with Conister Trust. We could have continued our lending in this sector without
these companies, but we decided we should not become wholly dependent on smaller
providers which could significantly increase our risk profile. We will
accelerate our rate of growth in litigation funding if the larger insurers
return to the market.

Directors and staff

It is with much sadness that I have to report the death of Jennifer Haigh in
February 2005. Jennifer had been a non executive director since October 2000 and
was our longest serving director on the current board. Jennifer, who was Manx
born and educated in Douglas until she went to university, will be known to many
shareholders and I am sure you will share with me a feeling of loss. We shall
miss Jennifer who always performed her duties assiduously. In view of recent
appointments to the board, we do not recommend introducing a replacement
director at this time.

As indicated in last year's report, Mr John Dean retired in May 2004 and Mr
Michael Marshall retired in November 2004. I wish them both well. Mr Gareth
Jones, an executive director and Mr Simon Lee, a non executive director, will
retire by rotation at the Annual General Meeting and, being eligible, I am
pleased that both offer themselves for re-appointment.

Our staff have worked long and hard during the year and I am grateful to them
for their contribution.

Outlook

We are celebrating our 70th anniversary in 2005, marking a long and
distinguished history, but not without its ups and downs. Conister Trust's
success over the past 70 years has been driven by its ability to embrace and
adapt to change, providing our customers and business partners with the service
they require and have come to value. The outlook for the next year or two seems
very much to reflect this pattern, with some good and some not so good pointers.
With the exception of litigation funding, we continue to operate in mature
markets with strong competition. There may well be pockets of growth in these
markets but they are likely to be limited at least in the short term. In others
areas we anticipate competition will further limit volumes and reduce margins.

Strategically, it is imperative that we find and exploit new niche markets.
Litigation funding itself will only be expanded if appropriate insurers enter
this market. In recent years we have significantly strengthened our capabilities
and concentrated on improving returns in existing markets. We now need to
accelerate our efforts in identifying new business opportunities in addition to
litigation funding and lending to personnel in the armed services.



Peter Hammonds
Executive Chairman









Executive Director's Report

The challenges of maintaining profitable business in the motor finance market
have been highlighted by the withdrawal of Singer & Friedlander from the market
in 2004, following First National's exit in 2003. However, these withdrawals
also create opportunities for Conister Trust to exploit and may in the medium
term lead to a reversal of the continued tightening of margins that we have
experienced in our hire purchase businesses during 2004.

Our income growth has continued the progress made in 2003 with a further
increase of 11% in 2004, generating #7.16 million. This increase has largely
been driven through income growth in litigation funding which highlights the
continued importance of building new income streams when our traditional markets
are under pressure. 2005 is not expected to see an increase in new business for
litigation funding, but the branch providing finance to armed services personnel
within Conister Finance and Leasing will add another new income stream.

Our UK commercial finance and leasing business has maintained its market
position, but there has been no opportunity to move away from the low rate
competition which this market has seen for a number of years.

Operating expenses have risen 7% to #2.75 million. However, there has been a
further reduction in the cost:income ratio to 68%, down from 73% in 2003.
Controlling costs in 2005 will face increased pressure because of the relatively
high inflation currently being experienced in the Isle of Man. However, managing
our costs within our growth strategy will remain a priority.
During the latter months of 2004, we invested in a new software system to
support our business units and to comply with more stringent UK consumer credit
legislation and forthcoming changes in accounting standards. This system has
recently commenced operation and the initial cost savings gained from its
effectiveness will be realised in 2005.

The continued effectiveness of our lending and debt recovery regime has led to a
further fall in specific bad debts, down #81,000 to #200,000 (2003: #281,000).
We have continued to build our general provision in line with our growing book
and entry into new markets. The level of general provision is set as a
percentage of our lending books, and whilst it is kept under periodic review,
there is necessarily a negative impact on our profitability during periods of
growth.

Our deposit book has continued to support the growth in our lending book. Our
deposit book grew during the year from circa #48 million to circa #53 million.

This trading performance has generated a 46% improvement in profit before
taxation and a 26% improvement in earnings per share. However, the return on
equity of 7.3% (2003: 5.2%) remains below the Board's goals. We will focus on
further improvement in return on equity in the long term through our strategy of
growth within both existing and new, less rate competitive markets.



Gareth Jones
Executive Director



Consolidated Profit & Loss Account

for the year ended 31 December 2004

                                                            2004          2003
                                                            #000          #000

Interest receivable and similar income                     7,162         6,442
Interest payable                                          (2,292)       (1,979)
                                                       -----------    ----------

Net interest income (gross income)                         4,870         4,463
Commissions                                                 (915)       (1,048)

Other operating income                                        64            83
                                                       -----------    ----------
Net operating income                                       4,019         3,498

Operating expenses                                        (2,747)       (2,558)
Bad and doubtful debts - specific                           (200)         (281)

- general                                                   (335)         (153)
                                                       -----------    ----------
Profit on ordinary activities before taxation                737           506
Taxation                                                     (48)          (21)
                                                       -----------    ----------
Profit on ordinary activities after taxation                 689           485

Dividends                                                   (297)         (270)
                                                       -----------    ----------
Retained profit for year                                     392           215
                                                       ===========    ==========
Basic earnings per share                                    2.45p         1.95p
                                                       ===========    ==========
Fully diluted earnings per share                            2.45p         1.95p
                                                       ===========    ==========





Balance Sheets

as at 31 December 2004

                                              Group               Company
                                          2004        2003      2004      2003
                                          #000        #000      #000      #000
Assets
Cash at bank                             5,087       6,115     4,972     5,994
Customers accounts receivable           57,395      51,072    54,702    48,175
Tangible fixed assets                    1,070         974       890       869
Investment in subsidiary undertakings        -           -        10        10
Other debtors and prepayments              193         137     2,241     2,367
                                       ---------  ---------- --------- ---------

                                        63,745      58,298    62,815    57,415
                                       =========  ========== ========= =========
Liabilities
Deposit accounts                        52,701      47,873    52,701    47,873
Creditors and accrued charges              664         511       563       469
Proposed dividends                         212         196       212       196
Provision for liabilities and charges        5          21         -         -
                                       ---------  ---------- --------- ---------
                                        53,582      48,601    53,476    48,538

Capital Resources
                                       ---------  ---------- --------- ---------
Called up share capital                  7,056       6,996     7,056     6,996
Share premium account                      749         735       749       735
Profit and loss account                  2,358       1,966     1,534     1,146
                                       ---------  ---------- --------- ---------
Equity shareholders' funds              10,163       9,697     9,339     8,877
                                       ---------  ---------- --------- ---------

                                        63,745      58,298    62,815    57,415
                                       =========  ========== ========= =========

Consolidated Cash Flow Statement
for the year ended 31 December 2004

Reconciliation of profit before taxation                     2004         2003
to net operating cash flow                                   #000         #000
Profit before taxation                                        737          506
Profit on sale of fixed assets                                 (1)          (1)
Depreciation charge                                           103          115
Increase in trade debtors                                     (40)         (72)
Increase/(decrease) in trade creditors                        110          (68)
                                                         ----------   ----------
Net cash inflow from trading activities                       909          480

Increase in customers accounts receivable                  (6,323)      (7,374)
Increase in deposit accounts                                4,828        7,921
                                                         ----------   ----------
Net cash (outflow)/inflow from operating activities          (586)       1,027
                                                         ==========   ==========
Cash flow statement                                          2004         2003
                                                             #000         #000

Net cash (outflow)/inflow from operating activities          (586)       1,027
Taxation                                                      (37)         (11)
Issue of ordinary share capital                                 -          800
Capital Expenditure
Purchase of tangible fixed assets                            (240)         (39)
Sale of tangible fixed assets                                  42            6
                                                         ----------   ----------
                                                             (821)       1,783
Equity dividends paid                                        (207)        (141)
                                                         ----------   ----------
(Decrease)/increase in cash                                (1,028)       1,642
                                                         ==========   ==========

Preparation of the results
The financial information set out in this statement is extracted from the
statutory financial statements which have not yet been audited but are not
expected to differ materially from the information given in this statement.

Final dividend
An interim dividend of 0.3p per share has been paid. The directors are proposing
a final dividend of 0.75p per share which will be paid on 27 May, 2005 to
shareholders on the register at close of business on 1 April, 2005.

Report and Accounts
A copy of these results contained in the annual report and accounts for the year
ended 2004 will be posted to shareholders by 8 April, 2005 and will be available
from that date from the Company's Registered Office, Conister House, 16-18 Finch
Road, Douglas, Isle of Man, IM1 2PT and will be posted on the company's web site
www.conistertrust.com.


Preliminary results announcement
A copy of this preliminary results announcement will be available from the
company secretary, Conister Trust PLC, 16-18 Finch Road, Douglas, Isle of Man,
IM1 2PT and will be posted on the company's web site www.conistertrust.com.

END.




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