1 March 2006
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the year ended 31
December 2005
Income Statement for the year ended
31 December 2005
Restated
For the period from 12
For year ended September 2003 to
31 December 2005 31 December 2004
Revenue Capital Total Revenue Capital Total
�000 �000 �000 �000 �000 �000
Gains/(losses)on investments:
realised 0 5,415 5,415 0 2,681 2,681
unrealised 0 (148) (148) 0 6,985 6,985
Gains/(losses)on foreign
exchange 0 27 27 0 (121) (121)
Income 2,475 0 2,475 2,720 0 2,720
Management fee (531) (271) (802) (529) (1,124) (1,653)
Other expenses (393) 0 (393) (486) 0 (486)
Investment transaction costs 0 (354) (354) 0 0 0
Return before interest
payable and taxation 1,551 4,669 6,220 1,705 8,421 10,126
Interest payable (14) (1,449) (1,463) (5) (1,576) (1,581)
Return on ordinary activities
before taxation 1,537 3,220 4,757 1,700 6,845 8,545
Taxation on ordinary
activities (228) 0 (228) (163) (17) (180)
Return on ordinary
activities after taxation
attributable to equity
shares 1,309 3,220 4,529 1,537 6,828 8,365
Transfer to reserves 1,309 3,220 4,529 1,537 6,828 8,365
Total Total
Return per zero dividend
preference share(pence): 7.57 8.23
Return per ordinary
share (pence): 24.96 45.85
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the year ended 31
December 2005 (Contd)
Balance sheet as at 31 December 2005
Restated
2005 2004
�000 �000
Fixed assets
Investments 48,988 45,138
Current assets
Debtors 404 1,483
Cash at bank 1,472 453
1,876 1,936
Creditors - amounts falling due
within one year
Creditors (382) (1,346)
Net current asssts 1,494 590
Total assets less current liabilities 50,482 45,728
Creditors: amounts falling due
after more than one year (22,168) (20,719)
Net assets 28,314 25,009
Capital and reserves
Share capital 181 181
Share premium 0 0
Redemption Reserve 10 10
Capital reserve - realised 3,211 (157)
Capital reserve - unrealised 6,837 6,985
Special reserve 17,474 17,474
Revenue reserve 601 516
Total equity shareholders' funds 28,314 25,009
NAV per share- ZDP Shares (pence) 115.80 108.23
- Ordinary Shares (pence) 156.06 137.84
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the year ended 31
December 2005 (Contd)
Reconciliation of Movements in Shareholders Funds
Share Share Redemption Capital Capital Special Revenue Total
Capital Premium Reserve Reserve Reserve Reserve Reserve
Realised Unrealised
�000 �000 �000 �000 �000 �000 �000 �000
For the year ended
31 December 2005
Balance at 31 December
2004 as originally
reported 372 0 1,586 (157) 7,043 36,426 108 45,378
Restatements (191) 0 (1,576) 0 (58) (18,952) 408 (20,369)
Balance at 31December
2004 (restated) 181 0 10 (157) 6,985 17,474 516 25,009
Return on ordinary
activities after taxation 0 0 0 3,368 (148) 0 1,309 4,529
Dividends paid 0 0 0 0 0 0 (1,224) (1,224)
Balance at 31December 2005 181 0 10 3,211 6,837 17,474 601 28,314
Share Share Redemption Capital Capital Special Revenue Total
Capital Premium Reserve Reserve Reserve Reserve Reserve
Realised Unrealised
�000 �000 �000 �000 �000 �000 �000 �000
For the period ended
31 December 2004
Opening balance 0 0 0 0 0 0 0 0
Ordinary shares issued 181 0 0 0 0 0 0 181
Return on ordinary
activities after taxation 0 0 0 (157) 6,985 0 1,537 8,365
Dividends paid and proposed 0 0 0 0 0 0 (1,021) (1,021)
Premium on issue of
share capital 0 18,952 0 0 0 0 0 18,952
Transfer to special reserve 0 (18,952) 0 0 0 18,952 0 0
Formation expenses 0 0 0 0 0 (572) 0 (572)
Repurchase of own shares
for cancellation 0 0 10 0 0 (906) 0 (896)
Balance at 31 December
2004 (restated) 181 0 10 (157) 6,985 17,474 516 25,009
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the year ended 31
December 2005 (Contd)
Cash Flow Statement for the year ended 31 December 2005
Period from
Year ended 12 September 2003
31 December to 31 December
2005 2004
�000 �000
Operating activities
Income received from investments 2,394 2,144
Interest received 161 125
Other income received 9 16
Investment management fees paid (1,699) (442)
Other cash payments (402) (449)
Net cash inflow from operating
activities 463 1,394
Servicing of finance
Interest Paid (14) (5)
Taxation
Overseas tax paid (221) (187)
Financial investments
Purchases of investments (50,527) (88,371)
Sales of investments 51,469 73,684
Liquidation of futures and options 1,073 (854)
Net cash inflow/(outflow) from
financial investments 2,015 (15,541)
Equity dividends paid (1,224) (1,021)
Net cash inflow/(outflow)
before financing 1,019 (15,360)
Financing
Issue of share capital 0 17,341
Redemption of preference shares 0 (50)
Buyback of ordinary shares 0 (906)
Formation costs 0 (572)
Net cash inflow from financing 0 15,813
Increase in cash for the year 1,019 453
Analysis of changes in cash
during the year
Opening balance 453 -
Increase in cash as above 1,019 453
Closing balance 1,472 453
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the Year ended
31 December 2005(contd)
NOTES
1. These accounts are prepared under the historical cost convention as
modified by the revaluation of fixed asset investments and in accordance with
applicable accounting standards and with the Statement of Recommended Practice
2003 regarding the Financial Statements of Investment Trust Companies (SORP).
The Company has adopted FRS 21 Events after the Balance Sheet Date, FRS 25
Financial Instruments: Disclosure and Presentation and FRS 26 Financial
Instruments: Measurement. These accounts are unaudited and do not constitute
statutory accounts.
2. The Directors have declared a fourth interim dividend of 2.25p net per
Ordinary share payable on 31 March 2006 to holders of Ordinary Shares on the
register at 10 March 2006.
3. The total return per Ordinary share is based on 18,143,433 Ordinary shares
in issue during the year (2004: weighted average of 18,242,490 Ordinary shares
in issue during the period).
4. The net asset value per Zero Dividend Preference share of 115.80p at 31
December 2005 has been calculated in accordance with the Articles of
Association.
5. At 31 December 2005 there were 18,143,433 Ordinary shares of 1p each and
19,143,433 Zero Dividend Preference shares of 1p each in issue.
6. The annual report will be sent to shareholders on or around 17 March, 2006.
It will not be advertised in newspapers, but copies will be available from that
date at the Companys Registered Office at Eastgate Court, High Street,
Guildford, Surrey GU1 3DE.
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the year ended
31 December 2005 (contd)
CHAIRMANS STATEMENT
I am pleased to report that 2005 proved another sound year for Premier Utilities
Trust PLC. Equity markets generally performed well over the period and the
utility sector delivered another year of strong performance despite some
residual uncertainty surrounding the outlook for interest rates and inflation.
Certainly the dramatic rise in global prices for oil and gas helped the sector
but continuing uncertainty regarding the sustainability of economic growth also
highlighted the fundamental attractions and solidity of utility earnings.
Performance
The total assets of your Company rose from �45.32m as at the 31December 2004 to
�50.07m as at 31 December 2005, or an increase of 10.5%. Both these amounts
include the provision for the last dividends for the respective periods of 2.25p
per Ordinary share, which are now only recognised in the Companys financial
statements when they are declared. In addition listed investments are now valued
at bid market prices whereas in prior periods they were valued at middle market
prices. The figure for total assets at 31 December 2004 has been adjusted for
this change. When the �1.22m of dividends that relate to the year ended 31
December 2005 are included, the Companys total return for the year was 13.2%.
The main catalyst for the portfolios performance over the period was the rise
in European power prices. A number of the Companys investments, most notably
Verbund in Austria, RWE and E.ON in Germany and Suez in France benefited from
the increase in power prices which came about as a result, principally, of the
high price of oil which fed through to gas prices.
Another excellent investment over the period proved to be the French water
company Veolia, the shares of which have virtually doubled since they were
purchased. Veolia won a number of large contracts over the year and this,
together with operational improvements, lifted profitability significantly.
All of your Companys management and administration expenses are charged against
the revenue account with the exception of the performance fee payable to the
investment manager, which has been charged to capital. As a result, and after
allowing for the additional accrual of 7.57p for the Zero Dividend Preference
shares (ZDP shares), net asset value per Ordinary share rose from 137.84p to
156.06p or an increase of 13.2%. Terminal value per Ordinary share (i.e. the
residual value of each share after allowing for the full accrual of the ZDP
shares at the proposed winding-up date for the Trust being the 31 December 2010)
rose 19.54p to 104p.
The hurdle rate is the amount by which the total assets of the Trust need to
increase (or decline) in order to achieve predetermined values for the Ordinary
shares. Thus the hurdle rate required to achieve the 100p initial value of the
Trusts Ordinary shares is now minus 0.4% whilst to achieve the year end share
price of 122p the hurdle rate is 1.2%. Accrued net asset value for the ZDP
shares increased from 108.2p to 115.8p or 7% whilst terminal cover increased
from 147% to 161% making the ZDPs one of the better-covered issues in the
market.
The performance of the Companys shares generally reflected the sound
performance of its assets. The Ordinary share price increased from 112.75p to
122p at the period end, an increase of 8.2% whilst the ZDPs rose by 8.5% to
124.5p. The package discount of Ordinary and ZDP shares ended the year at 8.2%.
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the year ended
31 December 2005 (contd)
Revenue and dividends
Revenue was relatively strong over the period with net revenue per Ordinary
share of 7.2p. Although earnings were lower in 2005 than the previous period,
the current period is twelve months compared to fifteen months previously. Thus
although overall earnings per share were lower in the period under review, on a
comparable basis they were actually marginally higher than the year ending 31
December 2004. As a result your Company has declared and paid dividends
totalling 4.5p per Ordinary share (in respect of net revenue generated in
2005).These were paid in June, September and December 2005. Your Board has now
declared a fourth interim dividend of 2.25p per Ordinary share in respect of
2005. This dividend will be paid on 31 March 2006 to shareholders on the
register at the close of business on 10 March 2006.
Following payment of the fourth interim dividend, making a total of 6.75p for
the year as a whole, your Company will retain an undistributed revenue reserve
for the year of �85,000 or 0.47p per Ordinary share, (allowing for the payment
of the fourth interim dividend of 2.25p per ordinary share on 31 March 2006).
This reserve will be added to the reserve carried forward from the previous year
and means that total revenue reserves now stand at �193,000.
Shareholder relations.
The Board and the Investment manager welcome contact not only with the Companys
existing investors but also with potential new investors. The Investment Manager
has met most of the Companys major shareholders. We have welcomed a number of
new shareholders this year and this broadening of the share register has helped
maintain the discount of the shares at a reasonable level.
The Board of Directors
Bill Syson retired from the Chair and as a director during 2005, and we thank
him for the enormous contribution he has made to the Boards deliberations over
the years. Adam Cooke has joined the board, and has taken the role of Chairman
of the Audit Committee. He has been involved with fund management and the
investment trust industry for many years at Invesco Perpetual, and as a Global
Partner of the parent company Amvescap PLC. He has already proved a valuable
addition to the Board and I recommend his re-election.
In addition, Ian Graham retires by rotation and offers himself for re-election.
His many years of investment experience in the utility sector is of significant
benefit to the Board. Again I recommend his re-election.
Annual General Meeting
The Annual General Meeting is being held on Monday 24 April 2006 commencing at
2.30pm.The location will be advised in due course.
PREMIER UTILITIES TRUST PLC
Preliminary unaudited announcement in respect of the year ended
31 December 2005 (contd)
Outlook
The outlook for markets is not unlike last years it would seem. Earnings growth
remains relatively robust whilst both inflation and interest rates are under
control at least for the foreseeable future. However, the current round of
interest rate tightening, whilst approaching its peak, may have a little further
to go whilst the strains on economic growth from this are being compounded by
the high price of commodities generally. This is unlikely to abate in the short
term, in our view, and growth could come under some pressure as the current year
matures.
So far as the global utility sector is concerned, we believe it may be
approaching the end of its five-year revaluation against other economic sub-
groups. Whilst earnings growth is maturing for the sector however, there are
specific stocks that are looking increasingly attractive notably those capable
of exploiting the high price of energy. These include nuclear and renewable
energy generators. We are also optimistic on the outlook for selective telecoms
companies and the extent to which the Company can diversify its asset base both
by economic sub sector and geographically does provide a degree of comfort in an
uncertain world.
Geoffrey Burns
Chairman
1 March 2006
Premier Utilities Trust PLC
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Enquiries: Andrew Whalley (telephone 01483 400400)
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