Interim Results
July 29 2004 - 6:30AM
UK Regulatory
29 July 2004
PREMIER UTILITIES TRUST PLC
Unaudited interim report for the period ended 30 June 2004
Statement of total return for the period from 12 September 2003
to 30 June 2004
Revenue Capital Total
�000 �000 �000
Gains on investments: realised 0 1,289 1,289
unrealised 0 2,219 2,219
Income 1,529 0 1,529
Management fee (303) 0 (303)
Other expenses (281) 0 (281)
Return before interest 945 3,508 4,453
payable & taxation
Interest payable 0 0 0
Return on ordinary activities 945 3,508 4,453
before taxation
Taxation on ordinary (112) 0 (112)
activities
Return on ordinary activities 833 3,508 4,341
after taxation
Appropriations in respect of
non-equity shares:
Zero Dividend Preference 0 (879) (879)
Return attributable to 833 2,629 3,462
equity shares
Dividend in respect of (748) 0 (748)
equity shares
Transfer to reserves 85 2,629 2,714
Revenue Capital Total
Return per ordinary share 4.55 14.35 18.90
(pence):
Return per zero dividend 0 4.59 4.59
preference share (pence):
PREMIER UTILITIES TRUST PLC
Unaudited interim report for the period ended 30 June 2004
(cont'd)
Balance sheet as at 30 June 2004
�000
Fixed assets
Investments 36,372
Current assets
Debtors 316
Cash at bank 4,108
4,424
Creditors - amounts falling due
within one year
Creditors (394)
Net current assets 4,030
Total assets less current
liabilities 40,402
Capital and reserves
Share capital 372
Share premium 0
Redemption Reserve 889
Capital reserve - realised 411
Capital reserve - unrealised 2,219
Special reserve 36,426
Revenue reserve 85
Equity and non-equity shareholders'
funds 40,402
Analysis between equity and non-equity
interests:
Ordinary shares - equity 20,380
Zero dividend preference shares- non- 20,022
equity
40,402
NAV per share - Ordinary Shares (pence) 112.33
- ZDP Shares (pence) 104.59
PREMIER UTILITIES TRUST PLC
Unaudited interim report for the period ended 30 June 2004
(cont'd)
Cash Flow Statement for the period from 12 September 2003 to 30
June 2004
�000
Operating activities
Income received from 1,257
investments
Interest received 53
Investment management fees (264)
paid
Other cash payments (218)
Net cash inflow from operating 828
activities
Taxation
Overseas tax paid (110)
Financial investments
Purchases of investments (49,636)
Sales of investments 37,749
Net cash outflow from financial investments (11,887)
Equity dividends paid (476)
Net cash outflow before financing (11,645)
Financing
Issue of share capital 17,281
Redemption of preference shares (50)
Buyback of ordinary shares (906)
Formation costs (572)
Net cash inflow from financing 15,753
Increase in cash 4,108
PREMIER UTILITIES TRUST PLC
Unaudited interim report for the period ended 30 June 2004
(cont'd)
NOTES
1. The Company was incorporated in England and Wales under the Companies Act
1985, as amended, and registered as a public limited company on 12 September
2003. Premier Utilities Trust PLC is a new investment trust with a fixed life of
approximately seven years to 31 December 2010. The Company was established as
the successor company to LeggMason Investors International Utilities Trust PLC.
2. 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").
These accounts are unaudited and do not constitute statutory accounts.
3. The Directors have declared a third interim dividend of 1.5p net per
Ordinary share payable on 30 September 2004 to holders of Ordinary Shares on the
register at 27 August 2004.
4. The revenue return per Ordinary share is based on earnings of �833,000 and
on a weighed average of 18,318,433 Ordinary shares in issue during the period.
5. The capital return per Ordinary share is based on net capital gains of
�2,629,000 and on a weighted average of 18,318,433 Ordinary shares in issue
during the period.
6. The net asset value per Zero Dividend Preference share of 104.59p at 30
June 2004 has been calculated in accordance with the Articles of Association.
7. At 30 June 2004 there were 18,143,433 Ordinary shares of 1p each and
19,143,433 Zero Dividend Preference shares of 1p each in issue.
8. The interim report will be sent to shareholders on 13 August, 2004. It
will not be advertised in newspapers, but copies will be available from that
date at the Company's Registered Office at Eastgate Court, High Street,
Guildford, Surrey GU1 3DE.
PREMIER UTILITIES TRUST PLC
Unaudited interim report for the period ended 30 June 2004
(cont'd)
CHAIRMAN'S STATEMENT
Although global equity markets have made some headway since November 2003,
concerns continue to weigh both over the sustainability of the economic recovery
in the US and the extent to which interest rates will have to rise in response
to the build up of inflationary pressures. Despite this, utility shares have
performed well and this has been reflected in the increased asset value of your
Company.
Performance
Your Board has not adopted a single benchmark index against which the
performance of your Company is measured. This is because our portfolio is
specialised in nature and is internationally diversified across a range of
different infrastructure industries. However, your Board has provided, and will
continue to do so in all reports and accounts, a range of stock market indices
against which the Manager's performance will be assessed. The performance of
these indices and of the Company's assets is shown below:
31 30 % %
October June Change Change
2003 2004 local �
FTSE Utilities Index* 1878.40 2232.82 +18.87% +18.87%
FTSE World Index * 159.41 178.24 +11.81% +4.48%
FTSE Global Utilities 3691.52 4429.71 +20.00% +11.80%
Index *
FTSE 100 Index * 2167.40 2309.50 +6.56% +6.56%
Company's Total �36.80m �41.07m +11.60% +11.60%
Assets *
Net Asset Value per 97.32p 112.33p +15.42% +15.42%
Ordinary share
Net Assets Value per 100.00p 104.59p +4.59% +4.59%
ZDP share
�/$ Exchange 1.6957 1.8203 +7.35% +7.35%
�/Euro Exchange 1.4618 1.4918 +2.05% +2.05%
* Total Return
Hurdle Rate* Terminal
Cover
Ordinary Shares 2% --
ZDP Shares -4% 1.3X
* Amount required to return the current share price for the Ordinary Shares
and the terminal asset value of the Zero Dividend Preference Shares.
Your Company's portfolio is very underweight in US utilities. Whilst the Manager
believes that value does exist in the US utility sector, there are more
opportunities for growth of capital and income in European and emerging market
utilities and infrastructure investments.
PREMIER UTILITIES TRUST PLC
Unaudited interim report for the period ended 30 June 2004
(cont'd)
Share repurchase and discount
Your Company repurchased one million of its Ordinary shares on the 18 November
2003 at a 10% discount to net asset value. This marginally enhanced the net asset
value of those remaining Ordinary shares, although it also served to reduce the
cover for ZDP shareholders. However, the subsequent increase in asset value
has more than compensated for this diminution in cover and at the end of the
period, terminal cover for the ZDP shareholders had increase from 1.2 times at
launch to 1.3 times.
Despite the improvement in asset value, the Ordinary shares have fallen from
their issue price to a significant discount. However, the package discount at
the end of the period was 12.2%, which is not markedly out of line with the
discount on conventional trusts (11.6%) and other split capital trusts (14.2%).
Your Board continues to monitor the discount in order to ensure that it is
not unacceptably high in the context of other trusts.
Dividends
In the prospectus issued at the time of the Company's launch, your Board stated
that forecast dividends would amount to 7.875p per Ordinary share in the fourteen-
month period to the 31 December 2004. This equates to an annualised dividend on
the Ordinary shares of 6.75p. I am pleased to say that we have declared and
paid two interim dividends. The first dividend amounting to 1.125p per Ordinary
share was paid on the 31 March 2004 and the second, amounting to 1.5p was paid
on the 30 June 2004. A third interim dividend of 1.5p has been declared and will
be paid on the 30 September 2004 to holders of Ordinary shares on the register
on 27 August 2004. The Board expects to be able to meet the remaining
quarterly dividends for 2004 as set out in the Company's prospectus of 1.5p per
Ordinary Share for the quarter ending 30 September 2004 and 2.25p per Ordinary
Share for the quarter ending 31 December 2004.
Outlook
The outlook for global equity markets is uncertain. Interest rates in the US
and, to a lesser degree, the UK will have to rise further and this will have an
impact on consumers who are heavily indebted. The US Federal Reserve and the
Bank of England will have to tread very carefully to ensure that any slowdown
does not turn into recession. This has seldom been achieved before. The global
utility sector is relatively economically insensitive and therefore should
continue to attract those investors who are seeking an attractive total return
from a stable area of the economy.
William Syson
Chairman
29 July 2004
Premier Utilities Trust PLC
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Enquiries - Andrew Whalley (telephone 01483 400400)
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