Interim Results

DUNEDIN SMALLER COMPANIES INVESTMENT TRUST PLC The objective of Dunedin Smaller Companies Investment Trust is the achievement of long-term capital growth from a portfolio of smaller companies in the United Kingdom, at a higher rate than the FTSE SmallCap Index (excluding Investment Companies). INTERIM RESULTS FOR THE 6 MONTHS TO 30 APRIL 2002 · Net asset value per share increased by 7.9% in the six-month period compared to an increase of 11.6% in the FTSE SmallCap Index. · Share price increased by 5.8% to 413.50p. · Interim dividend maintained at 4.0p. For further information, please contact:- Andrew Paisley, Edinburgh Fund Managers plc 0131 313 1000 Iain Beattie, Edinburgh Fund Managers plc 0131 313 1000 Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested. DUNEDIN SMALLER COMPANIES INVESTMENT TRUST PLC CHAIRMAN'S STATEMENT Over the past six months, the UK economy narrowly avoided recession but remained weak. The strength of UK consumer spending, particularly in the housing and retail markets, was the main support to the economy as the manufacturing sector struggled against a background of poor demand and a strong pound. Stockmarkets were volatile, particularly in the technology sector, as optimism ebbed and flowed on the prospects for an earnings recovery. Performance The Company's Net Assets Value (NAV) rose 7.9% compared to a rise of 11.6% in the FTSE SmallCap (ex Investment Companies) index. The Company benefited from strong performances from Sytner, which was subject to a successful bid and Brake Brothers, which has been put up for sale. This was mitigated by poor performances from Sportsworld Media and the Innovation Group. In the early part of the review period technology stocks rose sharply in anticipation of a quick return to profitability. The Company had a relatively low exposure to these companies which impacted negatively on performance. The manager has retained an underweight position in technology sectors, although at a less marked level than at the beginning of the period, and the board is comfortable with this position. Gearing Gearing has risen to 11.2% of shareholders' funds at 30 April 2002 compared to 3.7% as at 31 October 2001. This reflects the manager's more positive view of the economy and stockmarket. Revenue Account Earnings per share for the period were 4.94p which compares to 5.95p for the corresponding period last year. The interim dividend has been maintained at 4.0p and this will be paid on 28 June to shareholders on the register on 14 June. Prospects With interest rates set to remain low for some time and government spending set to rise, the UK economy should begin to recover. This should help companies' profitability and be reflected by higher share prices of stocks within the portfolio. Valuations of smaller companies are attractive and this is beginning to be reflected by increased takeover activity within the portfolio. The managers are looking to increase exposure to companies with cyclical exposure as well as those which will benefit from the increase in public spending. Dunedin Smaller Companies Investment Trust PLC Statement of Total Return (unaudited) 6 Months to 30 April 2002 Revenue Capital Total £000 £000 £000 Realised gains on investments - 26 26 Unrealised gains on investments - 6,625 6,625 Income from Investments 951 - 951 Interest receivable 218 - 218 Other income - - - Investment management fee (60) (179) (239) Other administrative expenses (125) - (125) NET RETURN BEFORE FINANCE 984 6,472 7,456 COSTS AND TAXATION Interest payable and similar charges (159) (476) (635) RETURN ON ORDINARY ACTIVITIES BEFORE 825 5,996 6,821 TAXATION Taxation (2) - (2) RETURN ON ORDINARY ACTIVITIES AFTER 823 5,996 6,819 TAXATION Dividends in respect of equity shares (662) - (662) 161 5,996 6,157 RETURN PER ORDINARY SHARE 4.94p 35.99p 40.93p 4.00p INTERIM DIVIDEND PER ORDINARY SHARE Dunedin Smaller Companies Investment Trust PLC Statement of Total Return (unaudited) 6 Months to 30 April 2001 Revenue Capital Total £000 £000 £000 Realised gains on investments - 631 631 Unrealised losses on investments - (3,288) (3,288) Income from Investments 1,167 - 1,167 Interest receivable 167 - 167 Other income 14 - 14 Investment management fee (75) (408) (483) Other administrative expenses (119) - (119) NET RETURN BEFORE FINANCE 1,154 (3,065) (1,911) COSTS AND TAXATION Interest payable and similar charges (159) (476) (635) RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION 995 (3,541) (2,546) Taxation - - - RETURN ON ORDINARY ACTIVITIES AFTER TAXATION 995 (3,541) (2,546) Dividends in respect of equity shares (668) - (668) 327 (3,541) (3,214) RETURN PER ORDINARY SHARE 5.95p (21.20p) (15.25p) 4.00p INTERIM DIVIDEND PER ORDINARY SHARE Dunedin Smaller Companies Investment Trust PLC (Cont'd) Statement of Total Return (unaudited) 12 Months to 31 October 2001 Revenue Capital Total £000 £000 £000 Realised losses on investments - (131) (131) Unrealised losses on investments - (30,684) (30,684) Income from Investments 2,571 - 2,571 Interest receivable 370 - 370 Other income 15 - 15 Investment management fee (142) (802) (944) Other administrative expenses (253) - (253) NET RETURN BEFORE FINANCE 2,561 (31,617) (29,056) COSTS AND TAXATION Interest payable and similar charges (316) (949) (1,265) RETURN ON ORDINARY ACTIVITIES 2,245 (32,566) (30,321) BEFORE TAXATION Taxation (2) - (2) RETURN ON ORDINARY ACTIVITIES AFTER 2,243 (32,566) (30,323) TAXATION Dividends in respect of equity shares (2,154) - (2,154) 89 (32,566) (32,477) RETURN PER ORDINARY SHARE 13.43p (195.01p) (181.58p) The revenue column of this statement represents the revenue account of the company. All revenue and capital items in the above statement are derived from continuing operations. Cashflow Statement (unaudited) 6 months to 6 months to 12 months to 30 April 30 April 31 October 2002 2001 2001 £000 £000 £000 NET CASH INFLOW FROM OPERATING 576 575 1,653 ACTIVITIES NET CASH OUTFLOW FROM SERVICING (628) (628) (1,256) OF FINANCE NET CASH (OUTFLOW)/INFLOW FROM (10,667) 3,558 13,866 FINANCIAL INVESTMENT EQUITY DIVIDENDS PAID (1,486) (1,486) (2,154) NET CASH (OUTFLOW)/INFLOW (12,205) 2,019 12,105 BEFORE FINANCING MANGEMENT OF LIQUID RESOURCES 5,471 4,929 (5,003) FINANCING (584) - - (DECREASE)/INCREASE IN CASH (7,318) 6,948 7,102 Dunedin Smaller Companies Investment Trust PLC Balance Sheet (unaudited) At At At 30 April 31 October 30 April 2002 2001 2001 £000 £000 £000 FIXED ASSETS Investments 95,228 83,006 116,361 CURRENT ASSETS Debtors 541 568 608 Treasury bills 4,461 9,932 - Cash and short term deposits 2,112 9,430 9,276 7,114 19,930 9,884 CREDITORS: Amounts falling due (1,724) (7,896) (1,946) within one year NET CURRENT ASSETS 5,390 12,034 7,938 TOTAL ASSETS LESS CURRENT 100,618 95,040 124,299 LIABILITIES CREDITORS: Amounts falling due (14,814) (14,809) (14,805) after more than one year 85,804 80,231 109,494 CAPITAL AND RESERVES Called up share capital - equity 4,138 4,175 4,175 Other reserves 81,666 76,056 105,319 TOTAL EQUITY SHAREHOLDERS' FUNDS 85,804 80,231 109,494 Net asset value per 25p share 517.33p 479.28p 654.48p Notes : 1. There will be an interim dividend of 4.0p per ordinary share (2001 - 4.0p) for the year ended 31 October 2002. The interim dividend will be paid on 28 June 2002 to shareholders on the register on 14 June 2002. The ex dividend date is 12 June 2002. 2.The financial information for the year ended 31 October 2001 has been extracted from the Annual Report and Accounts of the company which has been filed with the Registrar of Companies and on which the auditor's report was unqualified. 3. The statement of total return (incorporating the revenue account), balance sheet and cashflow statement set out above do not represent full accounts in accordance with Section 240 of the Companies Act 1985. 4. The accounts have been prepared in accordance with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies'. 5.The interim report will be posted to shareholders on 14 June 2002 and copies will be available at the head office of the Secretary - Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD. For Dunedin Smaller Companies Investment Trust PLC Edinburgh Fund Managers plc, SECRETARY INDEPENDENT REVIEW REPORT BY KPMG AUDIT PLC To Dunedin Smaller Companies Investment Trust PLC We have been instructed by the company to review the financial information set out on pages 6 to 10 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information therein, is the responsibility of, and has been approved by, the directors. The Listing Rules of the Financial Services Authority require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where they are to be changed in the next annual accounts in which case any changes, and the reasons for them, are to be disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of interim financial information issued by the Auditing Practices Board. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 April 2002. KPMG Audit Plc Chartered Accountants Edinburgh, 31 May 2002 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/05/31/20020531BIT01170/wkr0001.doc http://www.waymaker.net/bitonline/2002/05/31/20020531BIT01170/wkr0002.pdf