The Ukraine Opportunity Trust PLC
Half Yearly Report for the Period Ended 30 June 2008
The full Half Yearly Report can be accessed via the Company's website at
www.ukrotrust.co.uk or by contacting the Company Secretary on telephone
01392 412122.
Introduction
The Ukraine Opportunity Trust PLC was incorporated on 16 August 2005 and
commenced operations on 4 November 2005.
The Company's Articles of Association contain provisions designed to ensure
that, unless the Company is wound up earlier, it will be wound up on 30
September 2020. The Directors may, in their discretion, convene an
Extraordinary General Meeting of the Company in 2015 for the purpose of
winding-up the Company and the Articles contain provisions designed to ensure
that a Special Resolution to wind up the Company proposed at that meeting will
be passed.
Capital structure
The Company's share capital consists of Ordinary shares of US$0.01 each.
The number of shares in issue as at 30 June 2008 was 6,212,000.
The Company has 1,204,000 warrants in issue. Each warrant entitles the holder
to subscribe US$10.00 to one Ordinary share on 30 April in any of the years
2007 to 2012 inclusive.
Investment objective
The Company's investment objective is to achieve long-term capital growth
primarily from a diversified portfolio of companies incorporated, headquartered
or domiciled in, or whose businesses are primarily carried on in Ukraine
(including the non-Ukrainian holding companies of any such companies).
Investments may be made in private equity, listed shares and money market
investments.
Investment policy
Since the launch of the Company in 2005, the Investment Manager has been
focusing predominantly on unquoted companies. It is expected that those
investments will be realised either through trade sales or listings on relevant
exchanges and it is anticipated that the holding period for an unquoted
investment should be five to seven years on average.
As the listed securities market has started to develop, the Investment Manager
is also taking an opportunistic approach to reflect such changes in the market
and is thus investing in selected listed equities (mostly in pre-IPO and IPO
transactions). Some continuing holding of bonds is expected, principally for
liquidity purposes, and to allow the flexibility to react speedily when
opportunities arise.
The Company invests in companies incorporated, resident or domiciled outside
Ukraine that directly or indirectly invest in, or that have a substantial link
with Ukraine, and may invest up to 15% of the portfolio in companies
incorporated, headquartered or domiciled in, or whose businesses are primarily
carried on in the eastern European countries. The Company will invest no more
than 15%, by value of its investments (at the time of investment) in any one
company.
Specific industry sectors to be targeted include consumer related industries,
media and entertainment, construction materials, pharmaceutical, logistics and
distribution and export-oriented manufacturing.
The Company does not currently hedge its exposure to changes in the US Dollar/
Hryvnia exchange rate but has the power to do so. However hedging will only
take place if the Directors, on the recommendation of the Investment Manager,
consider this to be in the Company's interests.
Currently approximately 47% of the portfolio is in private equity, 33% in
listed equity and the balance in fixed income securities and cash. Potential
upcoming investments will increase the private equity exposure to approximately
59%, which will be funded by a reduction in fixed income securities.
Investment process
The investment approach is bottom-up, founded largely on sector-based company
analysis. The Investment Manager will continue to procure extensive research
based on reliable local sources, including the Investment Consultant. Regular
company visits are and will be made in order to understand the management
objectives and to seek to establish the quality of the assets. In Ukraine,
factors such as corporate governance, management, economic instability and
institutional reform continue to need to be given greater prominence in
reaching an investment decision and give rise to greater risks in comparison to
more developed markets.
The investment process for the Company's private equity investments may involve
deal origination and due diligence carried out by the Investment Manager and/or
by the Investment Consultant. The Investment Consultant may also assist the
Investment Manager in determining the structure of the Company's investment.
Once a final private equity proposal has been agreed by the Investment Manager,
it will be presented to the Company's Investment Committee for review and, if
thought fit, approval. At all stages of the investment process, in which the
Investment Consultant is involved the Investment Consultant will consult with
and will be subject to the supervision of the Investment Manager. The
Investment Manager will have discretionary authority to invest and divest in
respect of all non private equity investments but remains subject to the
ultimate supervision and control of the Directors at all times.
The Investment Manager has the discretion to make equity investments and
disposals involving less than 2.5%, (subject to an aggregate maximum of 10%) of
the Company's gross assets without prior reference to the Investment Committee.
Company Summary
Management Company Fabien Pictet & Partners Limited.
Assets attribution to shareholders US$73,853,000 as at 30 June 2008.
prior to warrant dilution*
Assets attribution to shareholders US$70,843,000 as at 30 June 2008.
Market capitalisation US$66,468,000 as at 30 June 2008.
Management fee US$737,000 (2% of Net Asset
attributable to Ordinary shareholders).
Performance fee US$224,000 (20% of increase in NAV
attributable to Ordinary shareholders).
Total expense ratio* 1.5%
PEP/ISA status The Company is fully eligible for
inclusion in PEPs and ISAs.
AIC The Company is a member of the
Association of Investment Companies.
* total expenses incurred in the half year to 30 June 2008 (excluding interest
costs and performance fees) as percentage of net assets (excluding effect of
warrants at fair value)
Summary of Results
30 June 2008 30 June 2007 31 Dec 2007
Assets attribution to shareholders prior US$73.85m US$69.10m US$72.84m
to warrant dilution*
Net asset value per Ordinary share* US$11.89 US$11.14 US$11.74
Diluted net asset value per Ordinary share* US$11.58 US$10.96 US$11.46
Assets attributable to shareholders US$70.84m US$65.16m US$68.73m
Net asset value per Ordinary share US$11.40 US$10.51 US$11.08
Mid market Ordinary share price US$10.70 US$11.00 US$11.00
(Discount)/premium to diluted net asset value* (7.60)% 0.36% (4.01)%
Mid market warrant price US$2.23 US$2.75 US$2.88
Dividend declared - - -
Six months to Six months to Twelve months to
30 June 2008 30 June 2007 31 December 2007
Total earnings per Ordinary share
: basic US$0.3238 US$1.0979 US$1.6773
: diluted US$0.3192 US$1.0845 US$1.6533
*excluding effect of warrants at fair value.
Risks
The following risks are monitored and assessed by the Managers and are reported
regularly to the Board and the Audit Committee:
Market risk - the market price of the Company's investments is subject to
fluctuations. By investing in Ukraine, the Company's investments involve
certain additional risks not typically associated with investments in developed
and other developing market economies.
Currency risk - investments are subject to movements in exchange rates.
Liquidity risk - it may not be possible to sell assets if there are no buyers
or they may trade at prices significantly different from the market quote.
Discount volatility risk - the discount of the Company's share price to the NAV
may fluctuate.
Regulatory risk - the Company may breach the Companies Act regulations or the
FSA/Stock Exchange rules.
Compliance with section 842 of the Income and Corporation Taxes Act 1988 - the
Company would lose its status as an investment trust if it fails to comply with
section 842.
The Directors do not envisage that there will be any specific risks over and
above those previously set out in the annual report and any referred to in the
Investment Management Report given below.
Related Party Transactions
Fabien Pictet & Partners Limited, as investment manager of the Company, is
considered to be a related party by virtue of its management contract with the
Company. During the six months to 30 June 2008, services with a total value of
US$737,000 (six months to 30 June 2007: US$677,000; year to 31 December 2007:
US$1,424,000) were purchased by the Company from Fabien Pictet & Partners. In
addition a total investment management performance fee US$224,000 was due to
Fabien Pictet & Partners Limited for the six months (2007: US$1,511,000; 31
December 2007: US$2,464,000). At 30 June 2008, the amount due to Fabien Pictet
& Partners Limited, included within creditors, was US$248,000 (30 June 2007:
US$116,000; 31 December 2007: US$128,000). Amounts are exclusive of VAT.
Interim Management Report and Responsibility Statement of the Directors
in respect of the Half Yearly Financial Report
Interim Management Report
This Half Yearly Financial Report is the first to be published by the Company
under the Disclosure and Transparency Rules ("DTR"). The Company is required to
make a number of new disclosures, including the following:
Important events that have occurred during the period under review; key factors
influencing the financial statements and; principal risks and uncertainties for
the remaining six months of the financial year. These are set out in the
Investment Management Report and below.
Following the exercise of warrants, 10,000 ordinary shares were allotted on 30
April 2008.
As at 31 July 2008 the undiluted NAV including current period revenue was
US $11.1806 per share , and the diluted NAV including current period revenue was
US $10.9889 per share.
Mr Gordon Lawson was appointed a Non-Executive Director of the Company on 23
July 2008. Mr Lawson has assumed the role of Chairman in succession to Mr Miles
Morland who remains on the Board as a Director.
Responsibility Statement
In accordance with the Disclosure and Transparency Rules 4.2.7R and 4.2.8R, we
confirm that to the best of our knowledge:
a. The condensed set of financial statements has been prepared in accordance
with International Accounting Standard 34, Interim Financial Reporting, as
adopted by the European Union, as required by the Disclosure and
Transparency Rule 4.2.4R;
b. The Half Yearly Report includes a fair review of the information required
to be disclosed under the Disclosure and Transparency Rule 4.2.7R, interim
management report. This includes (i) an indication of important events that
have occurred during the first six months of the financial year, and their
impact on the condensed interim financial information presented in the
half-yearly financial report and (ii) a description of the principal risks
and uncertainties for the remaining six months of the financial year: and
c. There were no changes in the transactions or arrangements with related
parties as described in the Company's annual report for the year ended 31
December 2007 that would have a material effect on the financial position
or performance of the Company in the first six months of the current
financial year.
Robin Monro-Davies Audit Committee Chairman
For and on behalf of the Board
28 August 2008
Investment Management Report for The Ukraine Opportunity Trust PLC
for the period ending 30 June 2008
Fund Commentary
2008 has not been a vintage year for the Ukrainian equity market. The PFTS
index was down 18 percent in the first quarter, and 20 percent in the second
(and an additional 15 percent in July). The market has been priced down on a
very low volume to such an extent that good value now seems to be present. Given
the almost non-existence of local pension and mutual funds there has been a lack
of domestic support as foreigners sold probably only small positions which made
prices move downwards sharply. Interestingly, earnings reports in most sectors
are still coming through showing approximate average growth of 50 percent year
over year.
Against this background, the Company managed an increase in NAV of 1.3 percent
during the first six months of 2008.
Portfolio breakdown
Equity investments stand at 77 percent with fixed income at 23 percent. The listed
equities in the portfolio performed well apart from Rodovid Bank which corrected
in line with the market. Overall our "listed" equity investments outperformed the
market, particularly in the agricultural sector. On the private equity side our
investments are progressing well. Korsando, our real estate developer, has been
re-priced upwards by 59 percent due to a revaluation of the land portfolio and some
extraordinary gains. We have also written down one of our investments as it is going
through a restructuring mainly on the management side. The rest of the portfolio is
progressing to plan and the pipeline is filling up well as private equity is the only
alternative for raising funds in this market environment. We are in the closing stages
of a new investment in the leasing sector and adding to our Bank Nadra holding which
will reduce our cash equivalent position close to the 10 percent level. This is a time
where opportunities are abundant for funds with cash.
Fixed Income
The composition of the fixed income portfolio has not changed much but will be drawn
down for new investments in the third quarter. The average life of the portfolio is
now 8 months and the average yield is 18 percent. Generally yields are approximately
18 to 19 percent, in the banking sector and 16 to 22 percent for non-banking corporate
bonds, reflecting the tight money policy of the National Bank of Ukraine (NBU). This
part of the portfolio greatly benefited from the appreciation of the Hryvnia.
Economy and Prospects
On the political side the coalition has lost two members thereby losing its majority
in parliament. The two MPs have not chosen which party they will support making it
unlikely that any bills will be passed in the near future. This is a coalition
government "Italian-style" and will probably remain like that for years to come. The
positive side of this is that it is business as usual and appears not to be hampering
the economic improvements. The only place where it has had an impact is regarding the
privatisation plans, which will not be going forward for the time being. Also, the
long awaited moratorium on the sale of agricultural land will probably not occur this
year either.
On the economic front, GDP growth is anticipated to slow down to 6.9 percent from 7.6
percent last year according to estimates as the tight monetary policy governed by the
NBU will slow growth rates. The good news is that the current account deterioration we
have witnessed should slow down as steel prices remain high and agricultural production
is expected to double in 2008 over 2007 and continue to grow for years to come. The
inflationary forces are starting to cool down as the NBU continues its tight policy
especially in controlling loan growth in the banking sector. Ukrainians are experiencing
the equivalent of ten years of inflation in two years as their economy adjusts to world
prices. The spiral in prices therefore cannot continue at the same rate. Imported
inflation is unfortunately not controllable as it is dictated by world commodity prices.
The only tool available to the NBU is a strengthening of the currency which has occurred
in the second quarter with a move from 5.05 to 4.55 to the USD (the official exchange rate
is 4.85 to the USD). The Hryvnia has since then stabilised around 4.65. We remain
bullish on the currency in the medium term.
Fabien Pictet & Partners Ltd
Investment Manager
28 August 2008
Portfolio Valuation
as at 30 June 2008
Security Name Currency Fair value % of
valuation Portfolio
$'000
Bonds
ING UAH Basket CLN 13/02/2011 UAH 13,279 17.92
Galnaftogas CV 5% 15/10/12 USD 1,417 1.91
14,696 19.83
Convertible Bonds
Star Galaxy (Vivaldroni) 15% USD 994 1.34
15/06/10
Food Master (Anthoreal Estates) 18% USD 962 1.30
01/09/08
Bank Nadra (DCM) L+500 10/04/18 USD 500 0.67
2,456 3.31
Total Bonds 17,152 23.14
Equities
Listed Equities
Creativ Industrial Group EUR 4,323 5.83
Land West USD 2,854 3.85
Kernel Holding PLN 2,768 3.74
Dragon Ukrainian Properties & GBP 673 0.91
Development
10,618 14.33
Rodovid Bank UAH 6,785 9.16
ISFP UAH 3,245 4.38
UkrRos Sugar Union UAH 2,781 3.75
12,811 17.29
Private Equities
Korsando USD 10,110 13.65
Bank Nadra USD 7,461 10.08
IMB Group USD 6,758 9.12
SV Company USD 3,401 4.59
Star Galaxy (Vivaldroni) USD 2,512 3.39
Food Master (Anthoreal Estates) USD 1,922 2.59
Vitalux (Chalsen Trade) USD 1,348 1.82
33,512 45.24
Total Equities 56,941 76.86
Total Portfolio 74,093 100.00
As at 30 June 2008 the portfolio was held 54.3% in USD denominated investments,
35.2% in UAH denominated investments, 5.8% in EUR denominated investments 1.0%
in GBP denominated investments and 3.7% in PLN denominated investments.
Income Statement (unaudited)
for the six months to 30 June 2008
Six months to Six months to Year ended
30 June 2008 30 June 2007 31 December 2007
Revenue Capital Total Revenue Capital Total Revenue Capital Total
US $'000 US $'000 US $'000 US '000 US'000 US'000 US $'000 US $'000 US
$'000
Investment Income 354 - 354 1,901 - 1,901 2,777 - 2,777
Gains on
investments
Gains on fair - 1,891 1,891 - 7,583 7,583 - 12,616 12,616
value through
profit or loss
investments
Exchange losses - (36) (36) - (15) (15) - (15)
(15)
- 1,855 1,855 - 7,568 7,568 - 12,601 12,601
Expenses
Investment (737) - (737) (677) - (677) (1,424) -
(1,424)
management fee
Investment - (224) (224) - (1,511)(1,511) - (2,464)
(2,464)
management
performance fee
Other expenses (329) - (329) (1,130) - (1,130) (1,491) -
(1,491)
(1,066) (224) (1,290) (1,807) (1,511)(3,318) (2,915) (2,464)
(5,379)
(Loss)/profit (712) 1,631 919 94 6,057 6,151 (138) 10,137 9,999
before
finance costs and
tax
Finance costs
Interest payable - - - (1) - (1) (4) -
(4)
Movement in fair - 1,093 1,093 - 668 668 - 532 532
value of warrants
Appropriation in 715 (2,724) (2,009) (40) (6,753) (6,793) 278 (10,669)
(10,391)
respect
of Ordinary
shares
Profit/(loss) 3 - 3 53 (28) 25 136 - 136
before tax
Tax (3) - (3) (53) 28 (25) (136) -
(136)
Profit for the - - - - - - - -
-
period
US $ US $ US $ US $ US $ US $ US $ US $ US
$
Earnings per
Ordinary share:
- Basic (0.1152) 0.4390 0.3238 0.0065 1.0914 1.0979 (0.0449) 1.7222
1.6773
- Diluted (0.1136) 0.4328 0.3192 0.0064 1.0781 1.0845 (0.0442) 1.6975
1.6533
The total column of this statement is the Income Statement of the Company
prepared in accordance with International Financial Reporting Standards
(`IFRS') as adopted by the EU. The supplementary revenue return and capital
return columns have been prepared under guidance published by the Association
of Investment Companies. All revenue and capital items in the above statement
are derived from continuing operations.
Balance Sheet (unaudited)
as at 30 June 2008
As at 30 As at 30 As at 31
June June December
2008 2007 2007
US $'000 US $'000 US $'000
Non-current assets
Investments held at fair value through 74,093 66,627 72,796
profit or loss
Current assets
Other receivables 214 675 273
Cash and cash equivalents 145 5,156 2,529
359 5,831 2,802
Total assets 74,452 72,458 75,598
Current liabilities
Other payables 599 3,355 2,761
Warrants at fair value 3,010 3,945 4,103
3,609 7,300 6,864
Total assets less current 70,843 65,158 68,734
liabilities
Non-current liabilities
Assets attributable to 70,843 65,158 68,734
shareholders
Equity - - -
US$ US$ US$
Net asset value per Ordinary share* 11.40 10.51 11.08
* Based on assets attributable to Ordinary shareholders held at fair value,
which is the amortised cost, in accordance with IAS 39
For information purposes only:
Net asset value per Ordinary share - basic ** 11.89 11.14 11.74
Net asset value per Ordinary share - diluted ** 11.58 10.96 11.46
** Based on assets attributable to Ordinary shareholders as above, but not
including warrants at fair value (as announced to the London Stock Exchange)
Statement of Cash Flows (unaudited)
for the six months to 30 June 2008
Six months Six months Year to
to 30 June to 30 June 31 December
2008 2007 2007
US $'000 US $'000 US $'000
Cash flows from operating
activities
Investment income received 346 2,295 3,255
Deposit interest received 20 20 89
Exchange gains on capital items 24 - 3
Investment management fees paid (3,081) (1,264) (1,999)
Secretarial fees paid (54) (88) (133)
Other cash payments (271) (1,284) (1,344)
Net cash outflow from operating (3,016) (321) (129)
activities
Servicing of finance
Interest paid - (1) (2)
Net cash outflow from servicing - (1) (2)
of finance
Taxation
Income tax paid (3) (53) (763)
Total tax paid (3) (53) (763)
Cash flows from investing
activities
Purchases of investments (6,369) (16,260) (47,353)
Sales of investments 6,904 21,358 50,344
Net cash inflow from investing 535 5,098 2,991
activities
Net cash (outflow)/inflow (2,484) 4,723 2,097
before financing activities
Cash flows from financing
activities
Proceeds of Ordinary share issue 100 220 220
Issue expenses - - (1)
Dividend paid - (1,545) (1,545)
Net cash inflow/(outflow) from 100 (1,325) (1,326)
financing activities
(Decrease)/increase in cash and (2,384) 3,398 771
cash equivalents
Cash and cash equivalents at
beginning of period/year 2,529 1,758 1,758
Cash and cash equivalents at
end of the period/year 145 5,156 2,529
NOTES
1. Accounting policies
The interim financial information has been prepared in accordance with IAS34,
`Interim financial reporting' and also in accordance with the accounting
policies set out in the statutory accounts for the year ended 31 December 2007.
The interim financial information should be read in conjunction with the
statutory accounts for the year ended 31 December 2007, which have been
prepared in accordance with IFRS.
An adjustment has been made to the June 2007 figures due to the warrants being
valued at the ask price of US$3.25 per warrant, instead of the mid market price
of US$2.75 which was used in the 2007 interim report. This adjustment increases
the movement in the fair value of warrants in the capital column of the Income
Statement thereby reducing the appropriation in respect of the Ordinary shares,
and increases the warrants liability in the Balance Sheet.
2. Financial information
The financial information contained in this Half Yearly Report does not
constitute full statutory accounts as defined in section 240 of the Companies
Act 1985. The financial information for the six months ended 30 June 2008 and
30 June 2007 has not been audited or reviewed.
The information for the year ended 31 December 2007 has been extracted from the
latest published audited accounts.
Those statutory accounts have been filed with the Registrar of Companies and
included the report of the auditors which was unqualified and did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.
3. Tax credit / charge on ordinary activities
The tax charge for the half year is nil (30 June 2007: nil; 31 December 2007:
nil) based on an estimated effective tax rate of 0% for the year ending 31
December 2008. The estimated effective tax rate is 0% as investment gains are
exempt from Capital Gains Tax owing to the Company's status as an Investment
Trust. There is expected to be an excess of management expenses over taxable
income in the year ending 31 December 2008 and therefore there is no liability
to Corporation Tax during the half year to 30 June 2008 (30 June 2007: nil; 31
December 2007: nil).
4. Return per Ordinary share
30 June 2008
Weighted Return
Average Per
Net number of Ordinary
return Ordinary share
US $'000 shares US $
Basic
Total return 2,009 6,205,000 0.3238
Revenue return (715) 6,205,000 (0.1152)
Capital return 2,724 6,205,000 0.4390
Diluted
Total return 2,009 6,293,000 0.3192
Revenue return (715) 6,293,000 (0.1136)
Capital return 2,724 6,293,000 0.4328
30 June 2007
Weighted Return
Average Per
Net number of Ordinary
return Ordinary share
US $'000 Shares US $
Basic
Total return 6,793 6,187,000 1.0979
Revenue return 40 6,187,000 0.0065
Capital return 6,753 6,187,000 1.0914
Diluted
Total return 6,793 6,264,000 1.0845
Revenue return 40 6,264,000 0.0064
Capital return 6,753 6,264,000 1.0781
31 Dec 2007
Weighted Return
Average Per
Net number of Ordinary
return Ordinary share
US $'000 shares US $
Basic
Total return 10,391 6,195,000 1.6773
Revenue return (278) 6,195,000 (0.0449)
Capital return 10,669 6,195,000 1.7222
Diluted
Total return 10,391 6,285,000 1.6533
Revenue return (278) 6,285,000 (0.0442)
Capital return 10,669 6,285,000 1.6975
5. Net assets attributable to Ordinary shares
Under IAS 32, the Ordinary shares are classified as debt, not equity and are
disclosed as a non-current liability in the Balance sheet, under the heading
"Assets attributable to shareholders".
The total net assets attributable to shareholders are calculated in accordance
with IAS32 as follows:
30 June 2008 30 June 2007 31 December 2007
US $'000 US $'000 US $'000
Assets attributable to 73,853 69,103 72,837
shareholders prior to warrant dilution
Warrants at fair value* (3,010) (3,945) (4,103)
Assets attributable to Ordinary 70,843 65,158 68,734
shareholders
For information only, assets attributable to shareholders are represented by:
30 June 2008 30 June 2007 31 December 2007
US $'000 US $'000 US $'000
Share capital 62 62 62
Share premium 5,350 5,240 5,240
Special reserve 51,678 50,753 50,595
Capital reserve 14,149 8,466 12,518
Revenue reserves (396) 637 319
Assets attributable to Ordinary 70,843 65,158 68,734
shareholders
The basic net asset value per Ordinary share as calculated including warrants
at fair value is:
30 June 2008 30 June 2007 31 December 2007
US$ US$ US$
Basic net asset value 11.40 10.51 11.08
Number of shares 6,212,000 6,202,000 6,202,000
* The fair value of the warrants is determined by their market value (ask
price) of US$2.50 per warrant as at 30 June 2008 (US$3.25 per warrant as at 30
June 2007 and US$3.38 per warrant as at 31 December 2007).Thus the assets
attributable to warrants reflect a time value as well as an intrinsic value.
The time value of warrants would diminish over time to the final exercise date
of the warrants in April 2012, with a corresponding increase in the value of
the assets attributable to the Ordinary shares.
The above method of calculation of the net asset value differs from the net
asset values per Ordinary share which are announced to the London Stock
Exchange, as the latter does not take into account the outstanding warrants as
a preferential liability before the remaining net assets are attributed to
Ordinary shares, to reflect the fact that the warrants will either lapse or be
converted to Ordinary shares in time and in which case the Company will receive
US$10 per warrant, which is the exercise price.
On this basis and for information only the net asset value per Ordinary share
was as follows:
30 June 2008 30 June 2007 31 December 2007
US$ US$ US$
Basic net asset value 11.89 11.14 11.74
Diluted net asset value 11.58 10.96 11.46
Number of shares :- basic 6,212,000 6,202,000 6,202,000
:- diluted 7,416,000 7,416,000 7,416,000
6. Reconciliation of return on ordinary activities before finance costs and
taxation to net cash flow from operating activities
6 months to 6 months to Year to
30 June 2008 30 June 2007 31 December
2007
US $'000 US $'000 US $'000
Return on Ordinary Activities 919 6,151 9,999
before finance costs and taxation
Less: Gains on investments (1,891) (7,583) (12,616)
Add back : Exchange losses 60 16 19
Decrease in debtors 59 193 595
(Decrease)/increase in creditors (2,163) 903 1,876
Interest paid - (1) (2)
Net cash outflow from operating (3,016) (321) (129)
activities
7. Reconciliation of net cash flow to net funds
6 months to 6 months to Year to
30 June 2008 30 June 2007 31 December 2007
US $'000 US $'000 US $'000
Opening net funds 2,529 1,758 1,758
(Decrease)/increase in cash in period (2,384) 3,398 771
Closing net funds 145 5,156 2,529
8. Movements in Assets Attributable to Shareholders (unaudited) for the six
months to 30 June 2008
Share Share Special Capital Capital Revenue Total
capital premium reserve Reserve reserve reserves
account Realised unrealised
US $'000 US $'000 US $'000 US $'000 US $'000 US $'000 US $'000
As at 31 December 62 5,240 50,595 3,763 8,755 319 68,734
2007
Revenue return - - - - - (715) (715)
for the period
Gains on - - - 1,759 - - 1,759
realisation of
investments
Movement in fair - - - 2,513 (2,381) - 132
value of
investments
Exchange (losses) - - - (60) 24 - (36)
/gains
Investment - - - (224) - - (224)
Manager's
performance fee
Movement in fair - - - - 1,093 - 1,093
value of warrants
Total recognised - - - 3,988 (1,264) (715) 2,009
income and
expenses
Dividend - - - - - - -
distributions
Exercise of - 110 (10) - - - 100
warrants (net of
expenses)
Reserve transfer - - 1,093 - (1,093) - -
Balance as at 30 62 5,350 51,678 7,751 6,398 (396) 70,843
June 2008
Movements in Assets Attributable to Shareholders (unaudited) - continued
Share Share Special Capital Capital Revenue Total
capital premium reserve Reserve reserve reserves
account Realised unrealised
US $'000 US $'000 US $'000 US $'000 US $'000 US $'000 US $'000
As at 31 December 62 5,000 50,085 (517) 2,898 2,142 59,670
2006
Revenue return - - - - - 40 40
for the period
Gains on - - - 8 - - 8
realisation of
investments
Movement in fair - - - - 7,575 - 7,575
value of
investments
Exchange (losses) - - - (16) 1 - (15)
/gains
Investment - - - (1,511) - - (1,511)
Manager's
performance fee
Tax on - - - 28 - - 28
capitalised
expenses
Movement in fair - - - - 668 - 668
value of warrants
Total recognised - - - (1,491) 8,244 40 6,793
income and
expenses
Dividend - - - - - (1,545) (1,545)
distributions
Exercise of - 240 - - - - 240
warrants (net of
expenses)
Reserve transfer - - 668 - (668) - -
Balance as at 30 62 5,240 50,753 (2,008) 10,474 637 65,158
June 2007
Movements in Assets Attributable to Shareholders (unaudited) - continued
Share Share Special Capital Capital Revenue Total
capital premium reserve Reserve reserve reserves
account Realised unrealised
US $'000 US $'000 US $'000 US $'000 US $'000 US $'000 US $'000
As at 31 December 62 5,000 50,085 (517) 2,898 2,142 59,670
2006
Revenue return - - - - - (278) (278)
for the period
Gains on - - - 3,850 - - 3,850
realisation of
investments
Movement in fair - - - 1,794 6,972 - 8,766
value of
investments
Movement in fair - - - 1,115 (1,115) - -
value of
investments 2006
Exchange losses - - - (15) - - (15)
Investment - - - (2,464) - - (2,464)
Manager's
performance fee
Movement in fair - - - - 532 - 532
value of warrants
Total recognised - - - 4,280 6,389 (278) 10,391
income and
expenses
Dividend - - - - - (1,545) (1,545)
distributions
Exercise of - 240 (22) - - - 218
warrants (net of
expenses)
Reserve transfer - - 532 - (532) - -
Balance as at 31 62 5,240 50,595 3,763 8,755 319 68,734
December 2007
Shareholder Information
Share dealing
The Company's Ordinary shares (Code UKRO) and warrants (Code UKRW) are listed
on the London Stock Exchange and can be traded through your usual stockbroker.
Share register enquires
The register for the Ordinary shares is maintained by Computershare Investor
Services PLC. In the event of queries regarding your holding, please contact
the Registrar on 08707 707 380 or email web.queries@computershare.co.uk.
Changes of name and/or address must be notified in writing to the Registrar.
Share capital and net asset value information
Ordinary shares USD 0.01 6,212,000
SEDOL number B0HW611
ISIN number GB00B0HW6117
The Company releases its net asset value per Ordinary share to the London Stock
Exchange following each month end.
Annual and Half Yearly reports
Copies of the Annual and Half Yearly Reports are available from the Company
Secretary.
Telephone: 01392 412122.
Investment Manager: Fabien Pictet & Partners Limited
The Investment Manager was incorporated in 1998 to offer specialist fund
management services to sophisticated investors worldwide and is regulated by
the FSA in the conduct of this investment business in the UK.
The Investment Manager has appointed EVU Management Ltd, to act as Investment
Consultant to provide investment research, due diligence and operational
support services in relation to the Ukrainian market and specific investment
opportunities in Ukrainian private equity.
The Association of Investment Companies
The Company is a member of the Association of Investment Companies.
Source of Information
Information about the Company, including copies of Annual and Half Yearly
reports and announcements released to the London Stock Exchange can be obtained
from the Company's website: www.ukrotrust.co.uk
Directors and Advisers
Directors (all non-executive) Registrar and Transfer Office
Gordon Lawson (Chairman) Computershare Investor Services PLC
Dmitry Chernobay The Pavillions
Bertrand Lipworth Bridgwater Road
Robin Monro-Davies Bristol BS99 6ZZ
Nigel Pilkington
Miles Morland Custodians
All of: Raiffeisen Zentralbank Österreich AG
Beaufort House Am Stadtpark 9
51 New North Road 1030 Vienna
Exeter EX4 4EP Austria
Company Secretary and Registered CJSC OTP Bank
Office Zhylyanska St. 43
Capita Sinclair Henderson Limited 01033 Kiev
Beaufort House Ukraine
51 New North Road
Exeter EX4 4EP Bankers
Tel: 01392 412 122 Lloyds TSB Bank Plc
Fax: 01392 253 282 234 High Street
Exeter EH4 3NL
Investment Manager
Fabien Pictet & Partners Limited Solicitors
34 Brook Street Slaughter and May
London W1K 5DN One Bunhill Row
London EC1Y 8YY
Investment Consultant Sponsor and Corporate Adviser
EVU Management Ltd Collins Stewart Europe Limited
Arch. Makariou 111, 22 88 Wood Street
3rd Floor London EC2V 7QR
P.C. 1065
Nicosia
Cyprus An investment company as defined
under Section 833 of the Companies
Auditors Act 2006
KPMG Audit Plc
8 Salisbury Square Registered in England and Wales
London EC4Y 8BB No.5537892
END
|