Enterprise Capital PLC
23 July 2003
Enterprise Capital PLC
Preliminary Announcement of Results for the year ended 31 March 2003
CHAIRMAN'S STATEMENT
The Company's net asset value at 31 March 2003 was 71.5 pence per share (2002:
85.9 pence per share) before deduction of a proposed dividend of 0.8 pence per
share (2002: 1.5 pence per share). If approved, the dividend will be paid
shortly after the Company's Annual General Meeting to be held on 2 September
2003.
Despite the dismal conditions which existed for smaller companies during the
period under review, the investment manager has energetically pursued any
opportunities to realise value from the portfolio. Protracted negotiations took
place involving a number of holdings in the portfolio but no meaningful
realisations were possible. Poor market conditions took their toll and
frustrated efforts to achieve exits at realistic values.
The performance of the portfolio has been mixed. The decline of Motherwell
Bridge and its write off was a sudden and serious disappointment. Certain other
companies also experienced difficult trading conditions. On the other hand,
Portman's management achieved creditable results in an extremely tough
environment for the travel industry. Metal Pressings expanded through an
acquisition, undertook a capital restructuring and paid a dividend. Episys also
continued to make progress, whilst Wolfson performed strongly and may consider a
public offering if market conditions permit.
The Board and Manager remain acutely conscious of the wish of shareholders that
the portfolio be realised at satisfactory values as swiftly as possible. It is
important to remember that in a small portfolio such as this it is almost
inevitable that much of the underlying value will be concentrated in two or
three of the holdings. All opportunities to achieve liquidity, however small,
will be actively pursued. Given the reduced size of the portfolio, the annual
management fee has been reduced and all other costs will be kept to a minimum.
Peter Dicks
Chairman
23 July 2003
CONSOLIDATED STATEMENT OF TOTAL RETURN
(*incorporating the revenue account) for the year ended 31 March 2003
Period from 23 February 2001 to
2003 31 March 2002+
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Losses on investments - (441) (441) - (2,274) (2,274)
Foreign exchange losses - - - - (1) (1)
Dividends and interest 387 - 387 411 - 411
Trading losses (278) - (278) - - -
Investment management fees (124) - (124) (128) - (128)
Operating expenses (116) - (116) (107) - (107)
Net (deficit)/return before finance
costs and taxation (131) (441) (572) 176 (2,275) (2,099)
Interest payable and similar charges - - - (6) - (6)
(Deficit)/return on ordinary
activities before taxation (131) (441) (572) 170 (2,275) (2,105)
Taxation on ordinary activities - - - - - -
(Deficit)/return on ordinary
activities after taxation (131) (441) (572) 170 (2,275) (2,105)
Dividend (85) - (85) (160) - (160)
Transfer (from)/to reserves (216) (441) (657) 10 (2,275) (2,265)
Return per Ordinary share:
Basic (1.23)p (4.14)p (5.37)p 1.59p (21.34)p (19.75)p
* The revenue column of this statement is the revenue account of the Group.
+ The Company was incorporated on 23 February 2001 and the Scheme of
Reconstruction of Enterprise Capital Trust PLC became effective on 18 May 2001.
All revenue and capital items in the above statement derive from continuing
operations. No operations were discontinued during the year.
GROUP AND COMPANY BALANCE SHEETS
As at 31 March
2003 2002
Group Company Group Company
£'000 £'000 £'000 £'000
Fixed assets
Investments at valuation 6,222 6,222 7,806 7,806
Investment in subsidiary undertaking - 886 - 1,112
6,222 7,108 7,806 8,918
Current assets
Investments 834 - 1,111 -
Debtors 89 94 10 113
Cash at bank 551 493 305 199
1,474 587 1,426 312
Creditors: amounts falling due within one year (157) (157) (236) (235)
Net current assets 1,317 430 1,190 77
Total assets less current liabilities 7,539 7,538 8,996 8,995
Capital and reserves:
Called-up share capital 107 107 107 107
Share premium account 47 47 47 47
Redemption reserve 50 50 50 50
Special reserve 10,257 10,257 11,057 11,057
Capital reserve - realised (530) (530) (530) (530)
- unrealised (2,186) (2,412) (1,745) (1,745)
Revenue reserve (206) 19 10 9
Equity shareholders' funds 7,539 7,538 8,996 8,995
Net asset value per ordinary share:
Basic 70.72p 84.39p
CONSOLIDATED CASHFLOW STATEMENT
For the year to 31 March 2003 23 February 2001 to
2003 31 March 2002
£'000 £'000
Operating activities:
Net (deficit)/return before finance costs and taxation (131) 176
Trading losses of trading subsidiary 278 -
Increase in debtors (79) (10)
(Decrease)/increase in other creditors (5) 72
Net cash inflow from operating activities 63 238
Servicing of finance
Interest paid on overdraft - (6)
Net cash outflow from servicing of finance - (6)
Capital expenditure and financial investment
Purchases of fixed asset investments - (33)
Purchases of Treasury Bills (3,284) (4,018)
Proceeds from the sale of fixed asset investments - 611
Proceeds from the sale of Treasury Bills 4,427 2,874
Net cash inflow/(outflow) from capital expenditure and
financial investment 1,143 (566)
Equity dividends paid (160) -
Net cash inflow/(outflow) before financing 1,046 (334)
Financing
Funds received from reorganisation of Enterprise
Capital Trust PLC - 930
Reorganisation expenses paid - (309)
Issue of Preference share capital - 50
Redemption of Preference share capital - (50)
Capital repayment to shareholders (800) -
Net cash (outflow)/inflow from financing (800) 621
Increase in cash 246 287
Notes:
The above results for the year ended 31 March 2003 are audited.
A resolution to declare a final dividend of 0.80p (2002: 1.5p) per Ordinary
share in respect of the year ended 31 March 2003 will be put to the members at
the forthcoming Annual General Meeting. If passed the final dividend will be
paid on 5 September 2003 to shareholders on the register at the close of
business on 1 August 2003.
The basic revenue return per Ordinary share is based on the net deficit on
ordinary activities after taxation of £131,000 (2002: revenue £170,000) and on
10,660,241 (2002: 10,660,241) Ordinary shares, being the number of shares in
issue throughout the year. The basic capital return per Ordinary share is based
on net capital losses for the year of £441,000 (2002: £2,275,000), and on
10,660,241 (2002: 10,660,241) Ordinary shares being the number of shares in
issue throughout the year.
The basic net asset value is based on net assets of £7,539,000 (2002:
£8,996,000) and on 10,660,241 (2002: 10,660,241) Ordinary shares being the
number of Ordinary shares in issue at the end of the year.
The financial information set out above does not constitute the Company's
statutory financial statements for the year ended 31 March 2003, but is derived
from and has been prepared on the same basis as those financial statements.
The statutory accounts for the year ended 31 March 2003 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting. The Annual General Meeting will
be held on 2 September 2003 at Midday in the Board Room, Ground Floor, Ryder
Court, 14 Ryder Street, London SW1Y 6QB. The Annual Report will be posted to
shareholders and those on the Company's mailing list as soon as practicable
after printing and will also be available on request from the Company Secretary,
J O Hambro Capital Management Limited at Ground Floor, Ryder Court, 14 Ryder
Street, London SW1Y 6QB.
This information is provided by RNS
The company news service from the London Stock Exchange
